CUSTOMER SATISFACTION

AT

ORIENTAL BANK OF COMMERCE

CO-ORDINATOR SUBMITTED BY

Hema Mirji (Co-coordinator (Business Analytics)

CHANDRAKANTA PANIGRAHI MBA (BA) 4th Trimester Roll No: 07

Institute of Management and Entrepreneurship Development

Pune - 411038

CERTIFICATE

This is to certify that the project titled Customer satisfaction at OBC is prepared by Chandrakanta is being Submitted for the partial fulfillment of the Masters degree in Business Analytics Programme at IMED, Bharati vidyapeeth University, Pune. He has successfully completed the project under my constant guidance and support.

Signature of the Project Guide (Hema mirji) Chandrakanta panigrahi MBA 4th trimester.

PREFACE

Summer training is a very important part of an MBA curriculum. It provides an optimistic iconography for Future existence through which students are able to see the real industrial environment which gives an opportunity to relate theory with practice. I undertook two months training programme at Oriental Bank of Commerce (Bhadrak) and worked on the project Customer Satisfaction at OBC . This report is the knowledge acquired by me during this period of training.

FEATURE OF THIS REPORT:

Several features of this report are designed to make it particularly easy for professionals and students to understand the customers perception about the financial products and services offered by the bank. STRUCTURE:

An empirical field approach complementing the text is followed

EMPIRICAL APPROACH: This report presents highly technical subject matter without complex formulas by using a balance of text and figures. The approximately 20 figures accompanying the text provide a visual and intuitive opportunity for understanding the material.

HIGHLIGHTED POINTS: Important points are highlighted at appropriate places to stress their importance.

APPENDIXES: The appendixes are intended to provide quick reference material or a review of materials needed to understand the concepts discussed in this report.

ACKNOWLEDGEMENT
A Project usually falls short of its expectations unless guided by the right person at the right time. This Project would not have completed without the direct or indirect help and guidance of such luminaries in Punjab National bank. They provided us with the necessary resources and an environment conducive for healthy learning and training. They provided us with the required amount of freedom to exercise our skill under their able guidance. At the outset, I would like to take this opportunity to gratefully acknowledge the very kind and patient guidance and encouragement I have received from our Project Guide Hema mirji (Co-odinator) and Mr.Pradeep Kumar Panda (BRANCH MANAGER) throughout their critical evaluation and suggestion at every stage of the Project, this report could never have reached its present form.

I would be failing in my duties if I forget to mention the name of Mrs. Kirti Gupta (Project Guide) for her unconditional support during the course of the project. I would like to extend my thanks to my college IMED for the facilities availed to me in terms of library work. Last but not least I would like to thank all the respondents for giving their precious time and relevant information and experience, I required, without which the Project would have been incomplete.

Chandrakanta panigrahi

1.1 INTRODUCTION TO BANKING IN INDIA

The banking section will navigate through all the aspects of the Banking System in India. It will discuss upon the matters with the birth of the banking concept in the country to new players adding their names in the industry in coming few years. The banker of all banks, Reserve Bank of India (RBI), the Indian Banks Association (IBA) and top 20 banks like IDBI, HSBC, ICICI, ABN AMRO, etc. has been well defined under three separate heads with one page dedicated to each bank. However, in the introduction part of the entire banking cosmos, the past has been well explained under three different heads namely:

History of Banking in India Nationalization of Banks in India Scheduled Commercial Banks in India

The first deals with the history part since the dawn of banking system in India. Government took major step in the 1969 to put the banking sector into systems and it nationalized 14 private banks in the mentioned year. This has been elaborated in Nationalization Banks in India. The last but not the least explains about the scheduled and unscheduled banks in India. Section 42 (6) (a) of RBI Act 1934 lays down the condition of scheduled commercial banks. The description along with a list of scheduled commercial banks are given on this page

1.1.1 HISTORY OF BANKING IN INDIA Without a sound and effective banking system in India it cannot have a healthy economy. The banking system of India should not only be hassle free but it should be able to meet new challenges posed by the technology and any other external and internal factors. For the past three decades India's banking system has several outstanding achievements to its credit. The most striking is its extensive reach. It is no longer confined to only metropolitans or

cosmopolitans in India. In fact, Indian banking system has reached even to the remote corners of the country. This is one of the main reasons of India's growth process. The government's regular policy for Indian bank since 1969 has paid rich dividends With the nationalization of 14 major private banks of India. Not long ago, an account holder had to wait for hours at the bank counters for getting a draft or for withdrawing his own money. Today, he has a choice. Gone are days when the most efficient bank transferred money from one branch to other in two days. Now it is simple as instant messaging or dials a pizza. Money has become the order of the day. The first bank in India, though conservative, was established in 1786. From 1786 till today, the journey of Indian Banking System can be segregated into three distinct phases. They are as mentioned below:

Early phase from 1786 to 1969 of Indian Banks Nationalization of Indian Banks and up to 1991 prior to Indian banking sector Reforms. New phase of Indian Banking System with the advent of Indian Financial & Banking Sector Reforms after 1991.

To make this write-up more explanatory, I prefix the scenario as Phase I, Phase II and Phase III. Phase I The General Bank of India was set up in the year 1786. Next came Bank of Hindustan and Bengal Bank. The East India Company established Bank of Bengal (1809), Bank of Bombay (1840) and Bank of Madras (1843) as independent units and called it Presidency Banks. These three banks were amalgamated in 1920 and Imperial Bank of India was established which started as private shareholders banks, mostly Europeans shareholders. In 1865 Allahabad Bank was established and first time exclusively by Indians, Punjab National Bank Ltd. was set up in 1894 with headquarters at Lahore. Between 1906 and 1913, Bank of India, Central Bank of India, Bank of Baroda, Canara Bank, Indian Bank, and Bank of Mysore were set up. Reserve Bank of India came in 1935. During the first phase the growth was very slow and banks also experienced periodic failures between 1913 and 1948. There were approximately 1100 banks, mostly small. To streamline the functioning and activities of commercial banks, the Government of India came up with The Banking Companies Act, 1949 which was later changed to Banking Regulation Act 1949 as per amending Act of 1965 (Act No. 23 of 1965). Reserve Bank of India was vested with extensive

powers for the supervision of banking in India as the Central Banking Authority. During those days public has lesser confidence in the banks. As an aftermath deposit mobilization was slow. Abreast of it the savings bank facility provided by the Postal department was comparatively safer. Moreover, funds were largely given to traders. Phase II Government took major steps in this Indian Banking Sector Reform after independence. In 1955, it nationalized Imperial Bank of India with extensive banking facilities on a large scale especially in rural and semi-urban areas. It formed State Bank of India to act as the principal agent of RBI and to handle banking transactions of the Union and State Governments all over the country. Seven banks forming subsidiary of State Bank of India was nationalized in 1960 on 19th July, 1969, major process of nationalization was carried out. It was the effort of the then Prime Minister of India, Mrs. Indira Gandhi. 14 major commercial banks in the country were nationalized. Second phase of nationalization Indian Banking Sector Reform was carried out in 1980 with seven more banks. This step brought 80% of the banking segment in India under Government ownership. The following are the steps taken by the Government of India to Regulate Banking Institutions in the Country:

1949: Enactment of Banking Regulation Act. 1955: Nationalization of State Bank of India. 1959: Nationalization of SBI subsidiaries. 1961: Insurance cover extended to deposits. 1969: Nationalization of 14 major banks. 1971: Creation of credit guarantee corporation. 1975: Creation of regional rural banks. 1980: Nationalization of seven banks with deposits over 200 crore.

After the nationalization of banks, the branches of the public sector bank India rose to approximately 800% in deposits and advances took a huge jump by 11,000%. Banking in the sunshine of Government ownership gave the public implicit faith and immense confidence about the sustainability of these institutions.

Phase III this phase has introduced many more products and facilities in the banking sector in its reforms measure. In 1991, under the chairmanship of M Narasimham, a committee was set up by his name which worked for the liberalisation of banking practices. The country is flooded with foreign banks and their ATM stations. Efforts are being put to give a satisfactory service to customers. Phone banking and net banking is introduced. The entire system became more convenient and swift. Time is given more importance than money. The financial system of India has shown a great deal of resilience. It is sheltered from any crisis triggered by any external macroeconomics shock as other East Asian Countries suffered. This is all due to a flexible exchange rate regime, the foreign reserves are high, the capital account is not yet fully convertible, and banks and their customers have limited foreign exchange exposure.

1.1.2 SCHEDULED COMMERCIAL BANKS IN INDIA The commercial banking structure in India consists of:

Scheduled Commercial Banks in India Unscheduled Banks in India

Scheduled Banks in India constitute those banks which have been included in the Second Schedule of Reserve Bank of India (RBI) Act, 1934. RBI in turn includes only those banks in this schedule which satisfy the criteria laid down vide section 42 (6) (a) of the Act. As on 30th June, 1999, there were 300 scheduled banks in India having a total network of 64,918 branches. The scheduled commercial banks in India comprise of State bank of India and its associates (8), nationalized banks (19), foreign banks (45), private sector banks (32), cooperative banks and regional rural banks. "Scheduled banks in India" means the State Bank of India constituted under the State Bank of India Act, 1955 (23 of 1955), a subsidiary bank as defined in the State Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959), a corresponding new bank constituted under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970), or under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40

of 1980), or any other bank being a bank included in the Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934), but does not include a co-operative bank". "Non-scheduled bank in India" means a banking company as defined in clause (c) of section 5 of the Banking Regulation Act, 1949 (10 of 1949), which is not a scheduled bank". The following are the Scheduled Banks in India (Public Sector):

State Bank of India State Bank of Bikaner and Jaipur State Bank of Hyderabad State Bank of Indore State Bank of Mysore State Bank of Saurashtra State Bank of Travancore Andhra Bank Allahabad Bank Bank of Baroda Bank of India Bank of Maharashtra Canara Bank Central Bank of India Corporation Bank Dena Bank Indian Overseas Bank Indian Bank Oriental Bank of Commerce Punjab National Bank Punjab and Sind Bank Syndicate Bank Union Bank of India United Bank of India UCO Bank Vijaya Bank

The following are the Scheduled Banks in India (Private Sector):

ING Vysya Bank Ltd Axis Bank Ltd Indusind Bank Ltd ICICI Bank Ltd South Indian Bank HDFC Bank Ltd Centurion Bank Ltd

Bank of Punjab Ltd IDBI Bank Ltd

The following are the Scheduled Foreign Banks in India:

American Express Bank Ltd. ANZ Gridlays Bank Plc. Bank of America NT & SA Bank of Tokyo Ltd. Banquc Nationale de Paris Barclays Bank Plc Citi Bank N.C. Deutsche Bank A.G. Hongkong and Shanghai Banking Corporation Standard Chartered Bank. The Chase Manhattan Bank Ltd. Dresdner Bank AG.

1.1.3 BANKING SERVICES IN INDIA With years, banks are also adding services to their customers. The Indian banking industry is passing through a phase of customers market. The customers have more choices in choosing their banks. A competition has been established within the banks operating in India. With stiff competition and advancement of technology, the services provided by banks have become more easy and convenient. The past days are witness to an hour wait before withdrawing cash from accounts or a cheque from north of the country being cleared in one month in the south. This section of banking deals with the latest discovery in the banking instruments along with the polished version of their old systems.

BANK ACCOUNT

The most common and first service of the banking sector. There are different types of bank account in Indian banking sector. The bank accounts are as follows:

Bank Savings Account - Bank Savings Account can be opened for eligible person / persons and certain organizations / agencies (as advised by Reserve Bank of India (RBI) from time to time) Bank Current Account - Bank Current Account can be opened by individuals / partnership firms / Private and Public Limited Companies / HUFs / Specified Associates / Societies / Trusts, etc. Bank Term Deposits Account - Bank Term Deposits Account can be opened by individuals / partnership firms / Private and Public Limited Companies / HUFs/ Specified Associates / Societies / Trusts, etc. Bank Account Online - With the advancement of technology, the major banks in the public and private sector has faciliated their customer to open bank account online. Bank account online is registered through a PC with an internet connection. The advent of bank account online has saved both the cost of operation for banks as well as the time taken in opening an account.

PLASTIC MONEY

Credit cards in India are gaining ground. A number of banks in India are encouraging people to use credit card. The concept of credit card was used in 1950 with the launch of charge cards in USA by Diners Club and American Express. Credit card however became more popular with use of magnetic strip in 1970. Credit card in India became popular with the introduction of foreign banks in the country. Credit cards are financial instruments, which can be used more than once to borrow money or buy products and services on credit. Basically banks, retail stores and other businesses issue these.

LOANS

Banks in India with the way of development have become easy to apply in loan market. The following loans are given by almost all the banks in the country:

Personal Loan Car Loan or Auto Loan Loan against Shares Home Loan Education Loan or Student Loan

In Personal Loan, one can get a sanctioned loan amount between Rs 25,000 to 10, 00,000 depending upon the profile of person applying for the loan. SBI, ICICI, HDFC, HSBC are some of the leading banks which deals in Personal Loan. Almost all the banks have jumped into the market of car loan which is also sometimes termed as auto loan. It is one of the fast moving financial products of banks. Car loan / auto loan are sanctioned to the extent of 85% upon the ex-showroom price of the car with some simple paper works and a small amount of processing fee. Loan against shares is very easy to get because liquid guarantee is involved in it. Home loan is the latest craze in the banking sector with the development of the infrastructure.

Now people are moving to township outside the city. More number of townships is coming up to meet the demand of 'house for all'. The RBI has also liberalised the interest rates of home loan in order to match the repayment capability of even middle class people. Almost all banks are dealing in home loan. Again SBI, ICICI, HDFC, HSBC are leading. The educational loan, rather to be termed as student loan, is a good banking product for the mass. Students with certain academic brilliance, studying at recognised colleges/universities in India and abroad are generally given education loan / student loan so as to meet the expenses on tuition fee/ maintenance cost/books and other equipment.

MONEY TRANSFER

Beside lending and depositing money, banks also carry money from one corner of the globe to another. This act of banks is known as transfer of money. This activity is termed as remittance business. Banks generally issue Demand Drafts, Banker's Cheques, Money Orders or other such instruments for transferring the money. This is a type of Telegraphic Transfer or Tele Cash Orders. It has been only a couple of years that banks have jumped into the money transfer businesses in India. The international money transfer market grew 9.3% from 2003 to 2004 i.e. from US$213 bn. to US$233 bn. in 2004. Economists say that the market of money transfer will further grow at a cumulative 12.1% average growth rate through 2009.

1.2

FUTURE OF BANKING IN INDIA

A healthy banking system is essential for any economy striving to achieve good growth and yet remain stable in an increasingly global business environment. The Indian banking system has witnessed a series of reforms in the past, like deregulation of interest rates, dilution of government stake in PSBs, and increased participation of private sector banks. It has also undergone rapid changes, reflecting a number of underlying developments. This trend has created new competitive threats as well as new opportunities. This paper aims to foresee major future banking trends, based on these past and current movements in the market.

Given the competitive market, banking will (and to a great extent already has) become a process of choice and convenience. The future of banking would be in terms of integration. This is already becoming a reality with new-age banks such as YES Bank, and others too adopting a single-PIN. Geography will no longer be an inhibitor. Technology will prove to be the differentiator in the short-term but the dynamic environment will soon lead to its saturation and what will ultimately be the key to success will be a better relationship management.

1.2.1 OVERVIEW If one were to say that the future of banking in India is bright, it would be a gross understatement. With the growing competition and convergence of services, the customers (you and I) stand only to benefit more to say the least. At the same time, emergence of a multitude of complex financial instruments is foreseen in the near future (the trend is visible in the current scenario too) which is bound to confuse the customer more than ever unless she spends hours (maybe days) to understand the same. Hence, I see a growing trend towards the importance of relationship managers. The success (or failure) of any bank would depend not only on tapping the untapped customer base (from other departments of the same bank, customers of related similar institutions or those of the competitors) but also on the effectiveness in retaining the existing base. India has witness to a sea change in the way banking is done in the past more than two decades. Since 1991, the Reserve Bank of India (RBI) took steps to reform the Indian banking system at a measured pace so that growth could be achieved without exposure to any macro-environment and systemic risks. Some of these initiatives were deregulation of interest rates, dilution of the government stake in public sector banks (PSBs), guidelines being issued for risk management, asset classification, and provisioning. Technology has made tremendous impact in banking. Anywhere banking and Anytime banking have become a reality. The financial sector now operates in a more competitive environment than before and intermediates relatively large volume of international financial flows. In the wake of greater financial deregulation and global financial integration, the biggest challenge before the regulators is of avoiding instability in the financial system.

1.2.2 RISK MANAGEMENT The future of banking will undoubtedly rest on risk management dynamics. Only those banks that have efficient risk management system will survive in the market in the long run. The

effective management of credit risk is a critical component of comprehensive risk management essential for long-term success of a banking institution. Although capital serves the purpose of meeting unexpected losses, capital is not a substitute for inadequate decontrol or risk management systems. Coming years will witness banks striving to create sound internal control or risk management processes. With the focus on regulation and risk management in the Basel II framework gaining prominence, the post-Basel II era will belong to the banks that manage their risks effectively. The banks with proper risk management systems would not only gain competitive advantage by way of lower regulatory capital charge, but would also add value to the shareholders and other stakeholders by properly pricing their services, adequate provisioning and maintaining a robust financial structure. The future belongs to bigger banks alone, as well as to those which have minimized their risks considerably.

2.1 INTRODUCTION

Oriental Bank of Commerce India was established in the year 1943 on 19th February in Lahore. After partition, Oriental Bank of Commerce shifted its Registered Office from Lahore to Amritsar paying every rupee to its departing customers. Oriental Bank of Commerce was nationalized on 15th April in 1980. Then OBC bank had 307 branches with Rs. 282.61 crores as deposits and as advance Rs. 152.69. The National Institute of Bank Management (NIBM), rated OBC Bank as "CustomerFriendly"Bank. Oriental Commercial Bank Limited is licensed by the Central Bank of Kenya as a commercial Bank to carry out banking activities under Banking Act Chapter 488 of the Kenyan laws. The Bank started its operations in the year 2002, with new investments and Board of Directors, by taking over the assets and liabilities of the erstwhile Delphis Bank, from Central Bank of Kenya. It is a middle sized Bank and one of the financially robust Banks in, Kenya in terms of shareholders fund and liquidity. Oriental Commercial Bank Ltd has its Head Office at Finance House, Koinange StreetNairobi. Presently the Bank has a branch network of four branches in major towns namely 1 Nairobi. 2. Nakuru. 3 Eldoret, and 4 Kitale. The Bank is managed by a professional team of management who are ably supervised by a Board of Directors consisting of eminent personalities of society having high level of integrity and professional skills in their respective areas of operations. We are committed to provide quality banking Service to our customers, however by strictly adhering to the Regulatory Guidelines as applicable within Kenya and, internationally. Our emphasis always remains on carefully following Know your Customers and Anti Money Laundering Guidelines.

Corporate banking Personal banking Industrial finance Agricultural finance Financing of trade International banking

Oriental Bank Commerce has been ranked 38th amongst top 500 companies by The Economic Times. OBC has earned 9th position among top 50 trusted brands in India.

Oriental Bank Commerce India maintains relationship with more than 200 leading international banks world wide. OBC India has Rupee Drawing Arrangements with 15 exchange companies in UAE and 1 in Singapore. A competent Board of Directors and Management professionally run Oriental Commercial Bank Ltd. The Board of Directors is drawn from diverse backgrounds with vast expertise that contributes towards,the achievement of company goals. They are as under: -

2.1.1: Management - Oriental Bank:Name Designation

Alok K Misra S C Sinha S K Newlay V Vijay Sai Reddy R S Maharshi U K Khaitan K B R Naidu

Chairman and Managing director Executive Director Director Director Director Director Director Executive Director Director Director Director Director Director

H Rathnakar Hegde Sumita Dawra Kamal Bhushan Vijay Jagirdar T Valliappan C K Sabharwal

2.1.2 HISTORY OF THE BANK

1980

The Oriental Bank of Commerce Constituted through an Act of Parliament on 11th July. The Bank transacts all kinds of banking business. 1993 12,80,000 shares of Rs 10 each already issued & subscribed.6,00,00,000 shares allotted at a premium of Rs 50 per share to Indian Financial Institutions. 60,00,000 shares at a premium of Rs 50 per share to Mutual Funds. 480,00,000 share at a premium of Rs 50 per share to Indian public. 23,80,000 shares to employees (additional 20,86,200 shares are taken up). 1997 Two Banks namely Punjab Co-operative Bank Ltd., and Bari Doab Bank Ltd., were amalgamated with the bank under Government of India notification on 7th April. Ten branches of these two banks which were taken over re-started their operations as Oriental Bank of Commerce branches w.e.f. 8th May. The correspondent network of the bank consisting of 138 major banks all over the world and 27 NOSTRO Accounts enables the bank to meet the foreign exchange requirements of its clientele. 1998 The Bank had 841 branches, comprising 247 rural branches, 271 semi-urban branches, 220 urban branches and 103 Metropolitan branches. OBC is also launching credit cards shortly for which it has already tied up with MasterCard. Oriental Bank of Commerce (OBC) has become the first public sector bank in the country to join hands with Citibank to launch OBC co-branded credit card. The formal agreement to this effect was signed between the two partners on 27th July. The launch of OBC card provides us access to Citibanks' world class banking technology and processing expertise which will enable us to provide better value to our customers. Union Bank of India has launched a new deposit scheme called `Sahaj Jama Yojana'. 1999 Oriental Bank of Commerce proposes to enter the insurance business in collaboration with Switzerland-based Company, Zurich Re.

 The bank has set up special branch, asset recovery branch, one each at Delhi and Mumbai and will also open the same in other parts of the country in future. 2000 Oriental Bank of Commerce decided to set up a life insurance Venture with a foreign partner. Mr. B.D. Narang has taken over as Chairman and Managing Director, of the bank with effect from July 17. Mr. B.D. Narang has bagged the Indira Gandhi Rajbhasha Award for the year 1999-2000 for the Bank's outstanding achievements in Implementation of Official Language Policy.

2002 Opens a specialised branch for women entrepreneurs Slashes interest rates on home loans Revises deposit rates Raises Rs 200 crore Tier-II capital through issue of bonds Ties up with Corporation Bank to share each other's ATM network 2003 Cuts domestic term deposit rates Slashes home loan rates by 0.75-pc Approves return of Capital held by Central Govt. Revises interest rates, margins on SSI advances Unveils electronic bill pay service Slashes lending rates for Small Scale Industries (SSI) Joins hands with Infosys Technologies Ltd. and Wipro Ltd. for its Centralized Banking Solution (CBS) Punjab National Bank (PNB) ties up with Oriental Bank of Commerce (OBC) to share ATMs Small Industries Development Bank of India (SIDBI) enters into alliance with the Oriental Bank of Commerce (OBC) to jointly work on projects in the field of small-scale, infrastructure and service areas

 Shri Vaidya Devendra Triguna has been appointed as non-official Director of the Bank OBC in alliance with MasterCard has launched OBC Prepaid Card The company has launched a housing loan package aimed exclusively at the salaried class from government, semi-government, public sector and reputed private sector organizations. 2004 Oriental Bank of Commerce has informed that Shri Karuna Sagar Principal, Bankers Training College Mumbai has been appointed as a Director of the Bank in place of Shri B.K. Vasdev, Regional Director, Reserve Bank of India, Kanpur w.e.f. January 9, 2004. New Holland Tractors ties up Oriental Bank of Commerce Oriental Bank induct Infy, Wipro for implementing IT project The Government of India on August 13 sanctioned the scheme for amalgamation of the GTB with OCB that came into effect on August 14

2005 Oriental Bank of Commerce (OBC) has recovered Rs 100 crore of non-performing asset (NPAs) of the beleagured Global Trust Bank, which was merged into it in July, and hopes to recover another Rs 100-150 crore soon. Government approves the second public issue of the Delhi-based Oriental Bank of Commerce (OBC). The Rs 2,000-crore issue will bring down government equity in the public sector bank to 51% from 66% currently. Mr K.N. Prithviraj appointed as the new Chairman and Managing Director, Oriental Bank of Commerce. Oriental Bank of Commerce in consultation with all the Book Running Lead Managers to the issue, has fixed the issue price at Rs 250 per share. Oriental Bank of Commerce appoints Ms H A Daruwalla as Chairman and Managing Director upto December 12, 2008

2006 Oriental Bank of Commerce (OBC) has informed that the Bank has signed the Memorandum of Understanding (MOU) with the IL & FS Investment Securities Ltd, for providing Online / Offline Share Trading facility for its customers. Oriental Bank of Commerce (OBC) has informed that the Central Govt. has appointed Sh. Kamal Bhushan, Chief Manager, of the Bank as Officer Employee Director on the Board of Directors of the Bank for aperiod of three years with effect from Nov 23, 2006 or until his successor is nominated or till he ceases to be an officer of the Bank of whichever is earlier. Oriental Bank of Commerce has informed that the Central Govt. has appointed Sh. V Vijayasai Reddy, Chartered Accountants, Chennai, as part time non official Director under Chartered Accountant categoryon the Board of Directors of the Bank for a period of three years with effect from date of notification (December 14, 2006) and/or until further orders, whichever is earlier. 2007 Oriental Bank of Commerce has raised its Benchmark Prime Lending Rate (BPLR) by 75 basis points to 12.50 per cent with effect from February 23.
Oriental Bank of Commerce (OBC) has joined hands with Escorts Ltd, a tractor manufacturer, for providing retailtractor finance to farmers.

2.1.3 ACHIEVEMENTS Oriental bank of commerce announced its Q1FY2010 results on 29 July 2009, delivering 62% y-o-y growth in net profits to Rs832 crore (Rs512cr), substantially ahead of expectations on account of large treasury gains, apart from healthy operating performance. While the banks deposit growth was reasonably robust at 4.4% sequentially and 26.5% y-o-y, unlike the peers its growth in advances also remained strong at 38% yo-y. In spite of being at the forefront of PLR cuts, the bank posted a healthy growth in Net Interest Income (NII) of 29% y-o-y.

Other Income surged 113% y-o-y, driven by strong treasury gains of Rs355 crore during the quarter in line with industry trends, even as Fee income was also robust at 45% y-o-y, on the back of strong balance sheet growth. Operating expenses were higher than expected on account of Rs150 crore of provisions for imminent wage hikes. Gross and Net NPA ratios remained stable sequentially at 1.8% and 0.2%, with the bank not adopting the guidelines of treating floating provisions as part of tier 2 capital instead of adjusting against NPAs on express permission from the RBI.

2.2 VISION AND MISSION Vision To evolve and position the bank as a world class, progressive, cost effective and customer friendly institution providing comprehensive financial and related services.

Integrating frontiers of technology and serving various segments of society especially weaker section.

Commited to excellence in serving the public and also excelling in corporate values

Mission To provide excellent professional services and improve its position as a leader in financial and related services.

Build and maintain a team of motivated workforce with high work ethos.

Use latest technology aimed at customer satisfaction and act as an effective catalyst for socio economic development.

2.3 VALUES AND ETHICS Bonding and Integrity

Ethical conduct

Periodic disclosure

Confidentiality and fair dealing

Compliance with rules and regulations

2.4 PRODUCTS AND SERVICES

Saving Accounts
How to Open an Account ?

Download or obtain Account Opening Form from the nearest branch, fill it up properly and deposit the same with the branch of your choice along with the

following :-

1. Furnish proof of Residence (In the form of a copy of Ration Card/ Passport/ Driving Licence/ Electricity Bill/ Telephone Bill/ Identity Card issued by any reputed institution. ORIGINALS be shown only at the time of scrutiny of papers)/ Business address.

2. Furnish 2 photographs of all the prospective account holder(s).

3.. Introduction about you from a person known to the bank preferably by an Account Holder of the Branch, whose account has run satisfactorily at least for the past six months.

4. Furnish PAN or declaration of Form No. 60 / 61as the case may be. The minimum balance will be:-

Types

In Rural / Semi Urban branches Rs. 100 Rs. 500

In Urban / Metropolitan branches Rs. 500 Rs. 1000

Without Cheque Book Facility With Cheque Book Facility

FOR SENIORS CITIZENS AND PENSIONERS Without Cheque Book Facility Rs. 20 Rs. 20

With Cheque Book Facility

Rs. 250

Rs. 250

Current Account
How to Open an Account ?

Download or obtain Account Opening Form from the nearest branch, fill it up properly and deposit the same with the branch of your choice along with the following :-

1. Furnish proof of Residence (In the form of a copy of Ration Card/ Passport/ Driving Licence/ Electricity Bill/ Telephone Bill/ Identity Card issued by any reputed institution. ORIGINALS be shown only at the time of scrutiny of papers)/ Business address.

2. Furnish 2 photographs of all the prospective account holder(s).

3. Introduction about you from a person known to the bank preferably by an Account Holder of the Branch, whose account has run satisfactorily at least for the past six months.

4. Furnish undertakings/ documents/ declarations as applicable. Please refer Current Account opening form for details.

5. Furnish PAN or declaration of Form No.60 / 61 as the case may be.

6. Minimum deposits.

In Rural / Semi Urban branches Rs. 500

In Urban / Metropolitan branches Rs. 5000

Pragati Deposit Scheme

LAUNCH OF ORIENTAL BANK PRAGATI ACCOUNT SCHEME

Name of the scheme

ORIENTAL BANK PRAGATI ACCOUNT SCHEME 14.08.2007 ALL NEW CURRENT ACCOUNTS Urban & Metropolitan Rs.5000/Rural & Semi-urban Rs.1000/For a limited period only 1. One Free ATM/ Debit Card for every Account. The ATM/Debit Card may also be permitted to the partners of the firm/Directors of the Company who are authorized to operate the Account. 2. Free Personal Accident (Death) insurance cover of Rs. 1 Lac (1st year) 3. Waiver of 100% ABB Charges during the 1st year.

Date of Commencement Eligibility Minimum Amount of Deposit and balance to be maintained Validity of Scheme Add on Facilities

4. Free internet / Tele banking 5. Waiver of Demat Account Maintenance Charges (for One Year)

For Accounts maintaining Average daily Additional Benefits Current Account Balance of Rs. 5 Lacs or more 1. Free Draft issuance Facility 2. Free RTGS Facility upto Rs.5 Lacs. (However, mandatory RBI charges plus applicable service tax shall be recovered.

Scheme Credit Schemes - Flexible Housing Loan, Car Finance, Personal Loan, Credit Cards

Social Banking - Mahila Udyam Nidhi Scheme, Krishi Card, OBC Farmers Welfare Trust

Corporate Banking - Gold Card scheme for exporters, EXIM finance

Business Sector - OBC Karigar credit card, OBC Kushal Udhami, OBC Pragati Udhami, OBC Vikas Udhami Flexi Fixed Deposit Scheme:We are pleased to inform that Flexi Deposit Scheme for the benefit of our depositor customers has been approved by the Board on 18th October 2006. This scheme shall come into operation w.e.f. 1st November 2006. The features of the scheme are as under:

PRODUCT & BENEFIT: Through reverse sweep facility, the amount lying in Flexi Fixed Deposit shall be available to the depositor whenever there is a requirement of funds in his / her / their operative account i.e. savings / current account. As such, whenever the depositor issues a cheque or uses ATM card and the available balance in his/her connected Savings/Current Account is not sufficient, Reverse Sweep will automatically withdraw the required amount from Flexi Fixed Deposit account and the remaining amount in FFD will continue to earn the same rate of interest, as agreed upon in the contract. In such event, the amount from flexi fixed deposit shall be transferred to his / her / their savings / current account by following the LIFO (last in first out) method. However, the funds to be transferred as a reverse sweep to Savings Bank/Current Account will also meet the requirement of maintaining minimum balance. ISSUANCE OF PASS SHEET (STATEMENT) IN LIEU OF DEPOSIT RECEIPTS In lieu of the regular Term Deposit Receipt, the Flexi Fixed deposit Pass Sheet shall be made available to the customers maintaining account under the scheme. A well established arrangement is already in place for generation and dispatch of this statement to the customers. COPEC Secunderabad will issue pass sheet to the customers of all the branches of the Bank who maintain account under this flexi deposit scheme. RESTRICTION ON LOAN: No loan / OD in any shape shall be allowed against deposit held in Flexi Fixed Deposit Scheme. 2.5 AWARDS AND DISTINCTIONS

Ranked among top 50 companies by the leading financial daily, Economic Times. Ranked as 323rd biggest bank in the world by Bankers Almanac (January 2006), London. Earned 9th place among India's Most Trusted top 50 service brands in Economic Times- A.C Nielson Survey. Included in the top 1000 banks in the world according to The Banker, London. Golden Peacock Award for Excellence in Corporate Governance - 2005 by Institute of Directors. FICCI's Rural Development Award for Excellence in Rural Development 2005

Directors Report:

The Board of directors have pleasure in presenting this Annual report together with the Audited Balance Sheet and Profit & Loss Account of the Bank for the Year ended 31st March, 2009. The Board of Directors thank Government of India, Ministry of Finance, Department of Economic Affairs and Reserve Bank of India and other Government & Regulatory Agencies for their valuable guidance and continued support provided to the Bank throughout the year. The Board of Directors are also grateful to the valued customers, esteemed shareholders, stakeholders and public at large for their patronage and confidence reposed in the Bank. The Board of directors place on record their great appreciation of the commitment, sense of involvement and dedication exhibited by each staff member in the overall development, growth and prosperity of the Bank and Look forward to their continued support and whole-hearted co-operation for realization of the goals in the year ahead. Oriental Bank of Commerce Fact File: Amongst the strongest banks in India High Capital Adequacy Ratio Consistent Profit-making Bank One of the Lowest Spreads in Banking Industry Total Working crosses the 35700 crore mark CRISIL Ratings The Highest Productivity per Employee NPA - One of the lowest a) The financial statements are prepared on historical cost convention, on a oingconcern basis and conform to the statutory provisions and practices prevailing in thecountry except as otherwise stated. b) Revenue and expenses have generally been accounted for on accrual basis.However, commission received / paid, locker rent, legal expenses for suit filedaccounts and recoveries there against, income on non-performing assets, dividendon investments, interest on overdue bills and on tax refunds are accounted for on cash basis. c) The interest on overdue deposits is provided for at the Saving Bank Deposit Rate

Oriental Bank of Commerce (OBC) With a close look: 1. BUSINESS OPERATIONS The Business of the Bank crossed Rs.133000 crore mark and stood at Rs.133184 crore on March,31st 2009.Total deposits of the Bank stood at Rs. 77856.70 crore and have shown an increase of Rs.13860.73 crore depicting a growth of 21.66% .Demand deposits, consisting of saving and current accounts, have risen from Rs.19389.94 crore in March 2008 to Rs. 21723.47 crore in March,2008, thereby recording a growth of 12.03%.In the wake of North-bound movement in rate of interest during the fiscal year 2008-09,cost of deposit increased to 7.08% as against 5.8% during the previous year fiscal .On the other hand ,net advances ,as at endMarch2009 stood at Rs 54565.83 crore registering a growth of Rs.23.62% During the fiscal 2008-09,yield on advances has improved to 10.25% from the previous years level of 8.6%. The credit deposit ratio of the Bank ,as at end-March2009,stood at 71.43%,same as in the previous year. The Bank ensured adequate flow of credit to the productive sectors of the economy. The Loans & Advances portfolio of the bank is well diversified and balanced. The Bank has ensured that its exposure to sensitive sectors such as Capital Markets, Real Estate, NBFCs etc. is well within the regulatory & prudential cap. 2. CAPITAL & RESERVES During the year, the bank transferred a sum of Rs.200.36 crore to the reserves (which includes Rs.89.00 crore transferred to Statutory Reserves, Rs 111.36 crore to Revenue and other Reserves) out of the Profit for the year 2008-09.With this, capital & reserves as on March 31, 2009 have gone upto Rs 5775.90 crore as against Rs. 5600.31 crore as at end March 2008, while the ratio of Capital & Reserves to average working funds stood at 6.99% as on 31.03.2009 as against 8.19% as on 31st March,2008. 3. CAPITAL ADEQUACY RATIO As on March 31,2009 the capital Adequacy Ratio of the Bank stood at 12.12% as against 12.51% as at March,2008.This is well above the regulatory minimum requirement of 9.0% .

4. FINANCIAL PERFORMANCE The Bank has posted a total income of Rs.7454.84 crore during the year as against Rs. 5768.16 crore last year thus registering an increase of Rs. 1686.68 crore (a growth of 29.24%) during the fiscal 2008-09 . Gross profit of the Bank went upto Rs. 1219.04 crore in 2007-08 as against Rs. 1296.69 crore last year .The Bank has made a net profit of Rs. 840.94 crore, after making all required provisions, showing an increase of Rs. 14.13 crore (growth of 1.71%) during the fiscal 2008-09.

5. DIVIDEND Your Banks policy of declaring dividend is to reward the share holders as well as to plough back profit for maintaining a healthy capital adequacy ratio & supporting future growth. Accordingly, your Directors are pleased to pay a total dividend of 47% for the year ended 31st March, 2009, which is the same for the preceding year.

6. SECTORAL DEPLOYMENT OF CREDIT TO PRIORITY SECTOR Banks advances to priority sector increased by Rs. 2804.63 crore from Rs. 15955.20 crore in March 2008 to Rs. 18759.83 crore in March 2009 registering a growth of 17.58%. The Priority Sector Advances constituted 42.50% of banks Adjusted Net Bank Credit (ANBC) against the stipulation of 40%. The comparative position of advances under various segments of Priority Sector. 6.1 AGRICULTURE ADVANCES Banks advances to agriculture increased by Rs.1197.77 crore from Rs.5732.28 crore in March 2008 to Rs.6930.05 crore in March 2009, registering a growth of 20.90%. The advances to direct agriculture segment increased by Rs.596.85 crqre from Rs.2867.06 crore as on 31.3.2008 to Rs. 3463.91 crore as on 31.3.2009, constituting a growth of 20.82%. The Indirect agriculture advances increased by Rs.600.92 crore from Rs. 2865.22 crore as on 31.3.2008 to Rs. 3466.14 crore as on 31.3.2009 showing an increase of 20.97%. 6.1.1 Flow of credit to Agriculture sector (Fresh disbursement) During the financial year 2008-09, flow of credit to agriculture sector amounted to Rs. 1794.94 crore. During the year, a total of 66,255 new agriculture loan accounts were added by 316 semi- urban and 273 rural branches. There was an average addition of 113 new agriculture loan accounts per rural and semi-urban branch.

6.1.2 Oriental Green Card (Kisan Credit Card) During the year, Bank issued 54,634 cards to farmers with a view to provide loan for crop production, working capital for allied activities and consumption needs. The aggregate credit disbursed through these cards during the year was Rs.662.99 crore. With this, the cumulative number of cards issued rose to 4,95,275 in March 2009.

6.1.3 Oriental Kisan Gold Card (OKGC) In order to meet comprehensively the requirement of working capital and investment credit of farmer, bank issues OKGCs. During 2008-09, Bank issued 1157 OKGC to farmers in rural areas. The aggregate credit disbursed during the year amounted to Rs. 28.20 crore, taking the cumulative number of OKGCs issued to 4771.

6.1.4 Hi-tech Dairy The bank has launched Hi-tech commercial dairy scheme on pilot basis which besides providing self employment opportunities to rural youth in the State of Punjab promotes diversification of productive activities in rural areas. This scheme has been launched in association with Punjab State Dairy Development Board, Punjab Milkfed and Milk Time. As on 31.3.2009, an amount of Rs.37.56 crore was sanctioned in 349 units. 6.1.5 Agriclinic and Agribusiness Centres Bank is providing credit assistance to agriculture graduates for setting up agriclinic and agribusiness centers. As on March 2009, 54 Agriclinic and Agribusiness centers were financed amounting to Rs. 673.14 lakh.

Oriental Saur Urja Dohan Scheme:

The fossil fuel resources are limited in quantity and are fast depleting. The poor use Kerosene as common fuel for lighting. The rural people face problem of home lighting due to non- availability of grid electric power supply. Even if there is power supply, frequent load shedding and low voltage is a regular phenomenon in rural areas. To overcome these problems the Bank is implementing a scheme for financing solar water heating and lighting system, for creating a viable alternate to conventional source of energy. The scheme is open to individual, institutional, commercial and industrial users. Bank has tied up with Bhartiya Vikas Trust (BVT), a NG0, for imparting training to Branch Managers on solar finance, to users and entrepreneurs for capacity building and also for demonstration / awareness camps to encourage rural population to adopt solar energy for home lighting. Under Solar Lighting System, bank has financed 153 units amounting to Rs.16.15 lakh in the states

of Uttar Pradesh & Rajasthan during the year. The bank finance for Solar Heating System amounted to Rs.99.25 lakh under MNRE tie up arrangement and bank claimed subsidy of Rs.13.10 lakh during the year. 6.1.6 Small and Medium Enterprises (SMEs) Banks exposure to Small Enterprises sector stood at Rs. 5015.05 crore at the end of March 2009 and has shown an increase of Rs. 1650.96 crore, recording an impressive growth rate of 49% Further, SME advances increased by Rs. 1181.08 crore to Rs. 6228.17, registering a growth of 23.40% against the Year on Year growth stipulation of 20%. The Tiny / Micro sector advances increased by Rs. 321.07 crore to Rs. 1328.30 crore posting a growth of 31.88%. Bank has entered into a MOU with SIDBI for co-financing of the SME sector in the clusters of Punjab and Delhi and with NSIC for outsourcing credit proposals for lending. The Bank has entered into a tie-up arrangement with SME Rating Agency of India Ltd. (SMERA) for providing comprehensive rating services to SMEs borrowers of the Bank at subsidized rates.

6.1.7 Oriental Bank Grameen Project (OBGP) Presently, as many as 356 villages are covered under the project. The bank has formed 3864 SHGs consisting of 19223 members. The cumulative amount advanced to these groups as at the end of March 2009 was Rs. 26.67 crore. Savings to the tune of Rs. 6.00 crore have been mobilized by the Self Help Groups so far. 6.1.8 Advances to weaker sections Advances to weaker sections, consisting of beneficiaries belonging to scheduled castes/scheduled tribes, small and marginal farmers, landless laborers, Rural Artisans, beneficiaries under Govt. Sponsored Schemes (except PMRY) were of the order of Rs. 2337 crore as at the end of March 2009 as against Rs. 1965 crore as at the end of March 2008.

6.1.9 Credit under Differential Rate of Interest Scheme Credit flow at concessional rate of interest of 4% p.a. to the low- income group of the society both in rural having annual family income upto Rs. 6500/- and urban having annual family income upto Rs. 7200/- (since revised to Rs.18000 and Rs.24000 respectively w.e.f. April 2009) centers was Rs. 123.24 crore as at the end of March 2009.

6.1.10 Loans to SCs/STs Bank continued its thrust in providing financial assistance to SCs/STs beneficiaries. The advances to these beneficiaries improved to Rs. 452.40 crore in March 2009 against Rs. 437.62 crore as at the end of March 2008. Recovery position of loan to SC/ST borrowers under Priority Sector as at the end of March 2009 was 69% to demand. 6.1.11 Prime Minister Rozgar Yojana (PMRY) With a view to providing self-employment opportunities to eddcated unemployed youth in the unorganized sector, Bank, ever since the introduction of the scheme has been extending financial assistance to the beneficiaries under the scheme. It provided credit assistance to 6859 youths to the tune of Rs.59.01 crore during 200809. 6.1.12 Swarn Jyanti Shahri Rojgar Yojana (SJSRY) For providing gainful employment to urban poor (living below the urban poverty line) through setting up self employment ventures, bank is providing financial assistance under the scheme since its inception. The bank financed to 2192 beneficiaries to the tune of Rs.7.60 crore during 2008-09. 6.1.13 Swarn Jyanti Gram Swrojgar Yojana (SGSY) The scheme is operative in rural areas of the country and covers the aspects of self employment such as organization of rural poor into Self Help Groups (SHGs) training, credit, technology, infrastructure and marketing. The bank is participating in the scheme. During 2008-09, bank provided financial assistance to 1511 individuals swarojgaries to the tune of Rs.5.55 crore and 351 SHGs to the tune of Rs.5.84 crore. 6.1.14 Credit Flow to Women Beneficiaries Bank has implemented 14-points action plan for strengthening of credit flow to women as advised by the Government of India. Bank has designated 9 branches as specialized branches for women entrepreneurs. It has put in place a number of credit schemes, such as Oriental Mahila Vikas Yojana, Financing for Beauty Parlours, Boutiques, Tailoring shops, Saloons, Professional & Self Employed Women, Scheme for financing working women, Oriental Swaran Yojana. Besides, a special project called Oriental Bank Grameen Project (OBGP) provides all types of banking assistance to the rural poor women. On account of a number of schemes catering to the needs of Women entrepreneurs, the Banks advance to women increased by Rs.428.47 crore from Rs.2118.96 crore as on March 2008 to Rs.2547.43 crore as on March 2009 registering a growth of 20.22%. Banks advances to women beneficiaries as on March 2009 was 5.77% of ANBC against the stipulation of 5%.

6.1.15 Financial Inclusion With a view to provide banking facilities to the sections of society so far deprived from the formal financial sector, bank mplemented financial inclusion policy. Bank adopted three pronged strategies for financial inclusion. First, rural branches of the bank adopted villages for financial inclusion. Second, both Lead Districts of the bank volunteered for 100% financial inclusion. Third, banks branches participated in districts identified by the respective SLBCs. Under village adoption scheme, bank covered 884 villages with 2,96,359 households. 73422 deposit a/cs were opened and 25,024 loans/GCCs were issued. In Banks Lead districts of Ferozepur completed 100% financial inclusion in all 997 villages and 156 wards having 2,89,896 households and opened 45,292 No Frill Accounts. In Sriganganagar District, Bank completed 100% financial inclusion in 3031 villages and 231 wards having 3,22,270 households and opened 69,316 new accounts. 6.1.16 OBC Rural Development Trust Bank set up a Special Purpose Vehicle, OBC Rural Development Trust, with a view to institute Rural Development Training & Resource Centres at different locations. The main objective of the Trust is to provide training on latest techniques of agriculture & animal husbandry, maintenance of farm machinery, skill upgradation of rural youth for self employment, capacity building of the rural poor, specially the Self Help Groups, training to educated unemployed youth and village adoption for all round development. Four such centers have become operational at Sriganganagar, Jaipur (Rajasthan), Ferozepur (Punjab) and Rudrapur (Uttarakhand). In all 77 training programmes were organized in which 3598 people were imparted training. The training programmes were conducted on latest agronomic practices, rearing of animals, local crafts like Phulkari in Punjab, tailoring, cottage & agro processing and computer related trainings to the unemployment youth. Special training programmes were organised exclusively for the members of SCs/STs and Minority communities. A total of 2824 trained persons were credit linked for pursuing/setting up of economic activities. 6.1.17 Urban Micro Finance The Institute of Social Service (ISS) is a registered society working for Empowerment of women and children from weaker sections to create self-sustainable community of their own. The institute is also conducting vocational training to make women and youth economically self-reliant. Bank is supporting the Empowerment of Women & Children Project run by ISS, thus helps in capacity building among women and children residing in the urban slums of Delhi. The women have been organized in SHGs for urban micro finance.

6.2. Retail Credit Retail Credit segment continues to be the thrust area of lending. The Bank is having 12 retail credit schemes including Home Loans to meet the requirements of various sections of the Society. The Bank has been formulating customized schemes and is also having tie-ups with various institutions to boost its retail segment. 6.3 Education Loan Bank continued its efforts for extending Education Loans to the needy and deserving students. During the admission session, education loan camps were organized in the campus of educational institutions. The education loan portfolio of the Bank showed healthy growth of over 43% during the current year and the same stood at Rs.583.49 crore as on 31.03.2009. With a view to enabling the students aspiring to avail education loan from our Bank, the facility of Online Education Loan Application has been launched on 31.03.2008 and the applicants can apply online by visiting the banks website http:// www.obcindia.co.in . 7. TREASURY OPERATIONS The Secondary Market operations in Government Securities and equity remained volatile during the 1st half of the financial year 2008-09 but remained bullish in the 2nd half, giving opportunity to the Bank to increase its turnover as well as profit. The Bank had shifted securities for Book Value of Rs.2047.93 crore from available for sale (AFS) category to held to maturity (HTM) category and booked depreciation of Rs.210.00 crore. The turnover in the secondary market has increased from Rs.11230.03 crore in the year 2007-08 to Rs. 18726.78 crore in the year 200809. The net profit from secondary market operation has increased from Rs.112 crore to Rs.153 crore during the year 2008-09 after accounting for brokerage paid etc. The aggregate investment of the Bank increased to Rs.24009.27 crore as the end of 200809 as against Rs.20013.45 crore as end of the financial year 2007- 08. The yield on investment has increased to 8.01% from 7.89% as compared to last year due to maturing of high coupon securities and holding of Treasury Bills in the Investment Portfolio.

8. MERCHANT BANKING ACTIVITIES: Bank has been registered as Depository Participant with both NSDL & CDSL. Nearly 1,00,000 customers are availing the demat services from the Bank. Bank has rolled out online trading services in collaboration withIDBI Capital Market Services to its customers. During 2009-10the Bank is planning to add more branches that will offer depository services to its customers.

9. FOREIGN EXCHANGE BUSINESS: During the fiscal 2008-2009, Forex Merchant Turnover achieved at Rs.37106.97 crore as on 31.3.2009, as against Rs.30008 crore as on 31.3.2008. Export Credit at the end of March 2009 stood at Rs.4156.11 crore as against Rs.3404.00 crore at the end of March 2008, thereby recording a growth of 22.09%. Foreign Currency Loans are being offered at competitive rate and requirement of the clients were met efficiently by the Bank. The Foreign Currency portfolio has grown up to USD354.50 million as on 31.3.2009 as against USD192.37 million as on 31.3.2008. Necessary support to the clientele is also extended in arranging Buyers Credit and External Commercial Borrowings through strong network of correspondence banks across the world. The Bank has established NRI Cell at Corporate level for management of NRI Inward Remittances and speedy credit of remittances directly to the accounts of NRI customers. Bank has participated in various Conferences/ exhibitions for promoting NRI activities in order to bring more visibility amongst NRIs and attracting their business. The Bank has received the permission from Central Bank of the UAE to open Representative office in Dubai and same shall be operationalised shortly. This platform will further give boost in our endeavor to attract more NRI business. The Fee based products like Western Union Money Transfer and Exchange House business have shown substantial growth during the financial year. The Bank has also tied up with correspondent banks for trade finance arrangements to speed up transactions and also to rationalise the charges. 10. NEW INITIATIVES With a view to shore up Non-Interest income to boost the bottom line of the Bank and also make inroads into newer areas, an seperate Department has been set up at Head Office. The Department has made foray into marketing of various NonInterest income products and services this year. It is our endeavour to sensitise every Regional Office to become market savvy by identifying officers/workmen who have the willingness and aptitude for marketing and then utilizing their services at identified centers (with potential of growth) on full time basis. As Banks are becoming Financial Super Markets, cross selling of products will be the order of the day. Greater emphasis is also laid on customer acquisition especially new generation customers, who are presently not aware of the dynamism prevailing in public sector Banks. 10.1 LIFE INSURANCE BUSINESS: During April-March 2008-2009, the Bank has sold 11230 life insurance policies with first premium collection of Rs. 46.00 Crore as on March 31, 2009. Bank is also putting in marketing efforts to acquire banking business of LIC of India branches at various locations. For the FY 2009 - 10, the Bank has projected Rs. 65.00 Crore (25% increase) as first premium collection. Bank has entered into Joint Venture for Life Insurance Business with Canara Bank and HSBC Insurance (Asia Pacific). On 5th May 2008, a non binding

MOU has been signed between OBC, Canara Bank and HSBC Insurance for establishing a Life Insurance Company in India. Under the proposed agreement, Canara Bank will hold 51% stake in the new Company, HSBC will hold 26% share in equity and OBC will hold the remaining 23% shareholding. The new Company is expected to start business by August, 2009. 10.2 GENERAL INSURANCE BUSINESS: Under general insurance business the Bank has been registering a steady growth and has procured 76981 policies with premium collection of Rs. 35.18 Crore up to March 31, 2009 (against Rs. 25.02 Crore last year), i.e. 25% growth. This section of Bank assurance business is stated to consolidate further by making use of cash management services at various locations. This business is also expected to improve fee based income of the bank. For FY 2009-2010, the premium collection figure is expected to be Rs. 40.50 Crore (25% increase). 10.3 MUTUAL FUND BUSINESS: Bank had entered into an agreement with M/s Franklin Templeton Asset Management (India) Pvt. Ltd. for selling of their Mutual Fund products through the banks branches. In the first phase, the sates of these products will be limited to select branches and gradually, on successful implementation, all other branches will be allowed to sell the Mutual Fund Products. The Bank has mobilized investment of Rs. 30.00 Crore during the period registering 60% growth in the current financial year. We have identified 100 Branches to start with and are hopeful of taking this portfolio to greater heights. With a view to providing various investment opportunities to clients, our bank has approved the distribution of various schemes of five more Mutual Fund Houses as under: 1 M/s Reliance Mutual Fund . 2 M/s DSP Merrill Lynch. 3. 4 M/s Kotak Mahindra Mutual Fund. M/s SBI Mutual Fund.

5. M/s Canara Robeco. Out of five Mutual Fund Houses, we have already launched distribution of products of first three Mutual fund Houses. We have mobilized AUM of Rs. 30.00 crores as on March 31,200 09.

11. BRANCH EXPANSION During 200-09, the Bank has opened 36 new branches besides up gradation of 14 Extension Counters. As on 31/03/2009, the total number of branches stood at 1323 as against 1273 as on 31/03/2008. The population group-wise classification of branches as at end- March, 2009 is as under: Sr. Classification No. 1. 2. 3. 4. Rural Semi-urban Urban Metropolitan Total

As on 31.03.2008 264 342 407 260 1273

As on 31.03.2009 273 316 408 326 1323

HEAD OFFICE Harsha Bhawan, E- Block, Connaught Place, New Delhi - 110001, INDIA

ZONAL OFFICES (25)

REGIONAL OFFICES (29)

BRANCHES (1323)

12. CUSTOMER SERVICE In its continued endeavor to provide fair, transparent and quality services to all the customers, the bank is a member of the Banking Codes & Standards Board of India (BCSBI) and has adopted and implemented voluntary Code of BCSBI for individual customers and the same has been put on Banks website. The code booklet, was got printed in Hindi & English and circulated to all the customers & staff. The Bank has revised & formulated Cheque Collection Policy, Compensation Policy, Security Repossession Policy and Policy for Grievance Redressal Mechanism in line with best practices and all the above policies have been put on Banks dynamic & interactive website for general information of public. The bank has also launched Web-based Customer Grievance Redressal System during the year under reference for prompt redresal of customers grievances. Apart from above various posters/pamphlets/handouts/circulars containing banks schemes /products etc., are provided at the branches for further improving service. Besides teams have been constituted at branch level for interaction with the customers and make them aware of banks various products/scheme. 13. KNOW YOUR CUSTOMER (KYC) NORMS & ANTIMONEY LAUNDERING (AML) MEASURES To comply with the various laws and regulations, national as well as international, Govt, of India and Reserve Bank of India directives / instructions & guidelines, primarily to prevent the bank from being used, intentionally or unintentionally, by criminal elements for money laundering activities, KYC Policy has been formulated. The Policy combines four key elements viz. customer Acceptance Policy, Customer Identification Procedures, Monitoring of Transactions and Risk Management. This will enable the bank to know / understand the customers and their financial dealings better and shall further help in managing risks more prudently. The detailed guidelines and subsequent instructions are being reiterated from time to time for strict Compliance by the field functionaries. The bank is already complying with the requirement of submission of statutory returns to the FIU-IND as a sequel to the new legislation on Prevention of Money Laundering Act-2002. The Bank has already procured a computer Software solution for complying with KYC/AML norms and generation of alerts for suspicious nature transactions, which is under testing and at the final stage of implementation. 14. IMPLEMENTATION OF OFFICIAL LANGUAGE During the year under review, Bank continued its concerted efforts to further accelerate use of Hindi in its working and to implement the guidelines/directives

received from Govt, of India and Reserve Bank of India. Concrete and effective steps were taken to achieve the region wise targets set by the Department of Official Language, Ministry of Home Affairs, Govt, of India in the Annual Programme- 200809. To assess the progress made in the field of usage of Hindi, the Third SubCommittee of the Committee of Parliament on Official Language visited Head Office and the Sub Committee of Draft and Evidence Committee inspected Regional Offices Chandigarh, Mumbai(South) & branch office Sayaji Ganj, Baroda during the year. The honourable Members of Committee appreciated the progress made by the Bank and extended their valuable guidance. For the year 2007-08 the Bank was awarded Second Prize & in-House Magazine AADHAAR was awarded Third prize under Inter Bank Rajbhasha Shield Pratiyogita and Inter Bank House Journal Pratiyogita respectively by the Banks Town Official Language Implementation Committee, Delhi. In compliance with the Official Language Policy of Govt, of India, 209 branches/ offices were got notified under rule 10(4) of Official Languages Rules, 1976. To propagate use of Hindi on computers the necessary training was imparted to the staff by conducting Hindi workshops as well as in other programmes at regular intervals so as to facilitate to do their work on computers in Hindi. To provide banking facilities to customers in Hindi by the CBS branches, the bilingual software prepared by M/s. Image Point, Pune has been installed on pilot basis in some of the branches as an alternate arrangement, till the new version of bilingual data processing software FINACLE is provided by M/s. INF0SYS. The e-circulars on newly introduced 0BC web portal is made available in bilingual form during the year under review so that all staff members of the Bank are able to see circulars/messages in Hindi on the portal. Banks new interactive dynamic website was made bilingual. Also Banks ATM-cum-Debit card PROTON has been made bilingual. The option of Hindi is made available on ATMs and Tele-banking. In compliance with the guidelines received from the Department of Official Language, Ministry of Home Affairs, Govt, of India, Hindi day/ Hindi fortnight / Hindi month were celebrated in different Offices/Branches of the Bank in the month of September, 2008. During the year under review, Hindi books on Literature and Banking were made available for the Hindi libraries set up at Head Office, Regional Offices and selected branches. All the issues of Banks quarterly in-House Magazine AADHAAR were published regularly in bilingual form. 15. RECOVERY During the fiscal 2008-09, concerted efforts were continued at all levels and the Bank has been able to recover Rs. 883.86 crore in NPA accounts (including write off), which includes cash recovery amounting to Rs. 512.67 crore. Out of above total recovery, a sum of Rs. 753.70 crore tantamount to reduction in NPAs and remaining amount of Rs. 130.16 crore has attributed towards revenue of the Bank. The Bank has effectively utilized the mechanism of Recovery Camps, One Time Settlement (OTS) scheme for Distressed Farmers, OTS scheme of Housing Loans & Retail Loans, SARFAESI Act, Lok Adalat, Sale of Financial Assets to ARCIL as well as General Settlement Policy of the Bank. Due to improved recovery performance, %age of Gross

NPAs to Gross Advances has come down from 3.20% as on 31.03.2007 to 2.31% as on 31.03.2009. Many hard core NPAs of the Bank have been resolved during this period. Out of total 1323 branches of the Bank, there are 209 NPA free branches as on 31.03.2009. 16. HUMAN RESOURCE DEVELOPMENT & TRAINING Banking in recent years has undergone tremendous transformation. This change has come about in the wake of opening up of the financial sector, sweeping changes in IT/ communication and growing customers expectations. The above changes have necessitated amongst others a need to change the skill upgradation curriculum. From purely up gradation of core skills, the need for imbibing new skills especially in marketing, understanding customer expectations and development of products has arisen. To achieve these objectives the Bank had drawn up a comprehensive detailed training programme for the year 2008-09. Our focus in Training during the year 2007-08 has been on the following streams:Recovery Management, Effective Branch Management, Programmes for Hall Incharge, Risk Management, Lending strategies to SMEs, Corporate finance and Retail finance, Marketing of Banks products, Forex Management, General Banking in CBS environment with use of IT. In 340 programmes 7436 employees were imparted training in the above streams and other areas of Banking. Further, another 1015 Officers were nominated in Advanced Training Programmes in key operational and behavioural streams in pioneer training institutions like; Reserve Bank of India, College of Agricultural Banking, Pune, NIBM, Pune, JNIDB, Hyderabad, IIMs, NIBSC0M, Noida, State Bank Academy, Hyderabad, IMAGE, Chennai, IDRBT, Hyderabad, FEDAI, CRISIL, IBA, Indian Institute of Banking Finance, ICFAI, Hyderabad and MDI, Gurgaon etc. to quote a few. Senior/top management functionaries were deputed for overseas exposure so as to have a feel of best international practices and their impact on Indian banking. During the year 2008-09, 201 Specialist Officers and 343 Clerks were recruited through test/interviews in different grades under various streams such as Financial Analysis, Forex, SSI, Law, Agriculture, IT, HRD and Hindi etc. and were deputed for General Banking/specialized training in their respective streams so as to provide them with adequate exposure in order to conduct themselves comfortably in their new assignments. Further, the Bank has also identified 200 vacancies of Probationary Officers and the process for filling up these vacancies shall be completed shortly. This will help in further improving age profile of employees as well as increasing the productivity / profitability of the Bank by ensuring optimum utilization of Human Resources. As at the end of March 2009, the Bank had 6825 Officers, 5216 Non Subordinate and 2763 Subordinate Staff, i.e. a total of 14804 employees. The Bank has complied with alt Government guidelines in respect of reservation for employees belonging to SC/ST/OBC/PWD/EXSM besides providing

laid down concessions/relaxations to them. The grievances of SC/ST/OBC employees, if any, were resolved through SC/ST Cell working at all Regional Offices and at Head Office under the charge of Liaison Officer/ Chief Liaison Officer.

S W O T ANALYSIS

Strength

Weakness

Opportunities

Threats Lets analyze SWOT in order to know as to where the company stands

2.7 SWOT ANALYSIS

STRENGTH

Wide network Large number of customers Fast adaptability to technology Brand image

WEAKNESS

Casual behaviour Corruption and red tapism Slow decision making due to large hierarchy High gross NPA

OPPORTUNITIES

Home to home banking services Diversification towards other fields Globalization

THREATS

Stiff competition from SBI,PNB and other private players.

3.1 CUSTOMER SATISFACTION

Customer satisfaction refers to the extent to which customers are happy with the products and services provided by a business.

Customer satisfaction levels can be measured using survey techniques and questionnaires

DEFINITIONS: Definition 1: Customer satisfaction is equivalent to making sure that product and service performance meets customer expectations.

Definition 2: Customer satisfaction is the perception of the customer that the outcome of a business transaction is equal to or greater than his/her expectation.

Definition 3: Customer satisfaction occurs when acquisition of products and/or services provides a minimum negative departure from expectations when compared with other acquisitions.

Gaining high levels of customer satisfaction is very important to a business because satisfaction customers are most likely to be loyal and to make repeat orders and to use a wide range of services offered by a business

There are many factors which lead in high levels of customer satisfaction including. Products and services which are customer focused and hence provide high levels of value for money.

What is clear about customer satisfaction is that customers are most likely to appreciate the goods and services that they buy if they are made to feel special. This occurs when they feel that the products and services that they buy have been specially produced for them or for people like them.

3.2 BENEFITS OF CUSTOMER SATISFACTION

The importance of customer satisfaction and support is increasingly becoming a vital business issue as organization realize the benefits of Customer Relationship Management (CRM) for providing effective customer service. Professionals working within customer-focused business or those running call centers or help desks, need to keep informed about the latest customer satisfaction techniques for running a valuable customer service function. From small customer service departments to large call centers, the importance of developing a valued relationship with customers using CRM is essential to support customer and long-term business growth. What Do Customers Want? Before we begin to create tools to measure the level of satisfaction, it is important to develop a clear understanding of what exactly the customer wants. We need to know what our customers expect from the products and services we provide. Customer expectations have two types Expressed Implied

Expressed Customer Expectations are those requirements that are written down n the contract and agreed upon by both parties for example, product specifications and delivery requirements. Suppliers performance against these requirements is most of the items directly measurable.

Implied Customer Expectations are not written or spoken but are the ones the customer would expect the supplier to meet nevertheless. For example, a customer would expect the service representative who calls on him to be knowledgeable and competent to solve a problem on the spot.

There are many reasons why customer expectations are likely to change overtime. Process improvements, advent of new technology, changes in customers priorities, improved quality of service provided by competitors are just a few examples. The customer is always right. Suppliers job is to provide the customer what he/she wants, when he/she wants it. Customer satisfaction is customers perception that a supplier has met or exceeded their expectations.

3.3 WHAT CONSTITUTES SATISFACTION?

We cannot create customer satisfaction just by meeting customers requirements fully because these have to be met in any case. However failing short is certain to create dissatisfaction Major Attributes of customer satisfaction in banking industry can be summarized as:

 Product quality Premium Outflow Return on Investment Services Responsiveness and ability to resolve complaints and reject reports. Overall communication, accessibility and attitude.

WHAT ARE THE TOOLS? Customer expectations can be identified using various methods such as: Periodic contract reviews Market research Telephonic interviews Personal visits Warranty records Informal discussions Satisfaction surveys

Depending upon the customer base and available resources, we can choose a method that is most effective in measuring the customers perceptions. The purpose of the exercise is to identify priorities for improvements. We must develop a method or combination of methods that helps to continually improve service.

3.4 CUSTOMER SATISFACTION SURVEYS Formal survey has emerged as by far the best method of periodically the customer

satisfaction. The survey are not marketing tools but an informationgaining tool. Enough homework needs to be before embarking on the actual survey. This includes:

Defining Objectives of the Survey Design Survey approach Develop questionnaires and forms Administer Survey (Email, Telephone or Post) Method of compiling data and analyzing the findings Format of the report to present the findings

There is no point in asking irrelevant questions on a customer satisfaction questionnaire. The basic purpose is to find out what we are doing right or wrong. Where is the scope for improvement, where do we stand vis--vis other suppliers. How we can serve the customer better?

A customer satisfaction measurement survey should at least identify the following objectives: Importance to customers (Customers priorities) Customers perception of suppliers performance Your performance relative to customers priorities. Priorities for improvement

Survey forms should be easy to fill out with minimum amount of time and efforts on customers part. They should be designed to actively encourage the customer to complete the questions. Yet they must provide accurate data should also be sufficiently reliable for management decision making. This can be achieved by incorporating objective type questions where customer has to rate on scale of say 1 to 10. For repeated surveys, you could provide the rating that was previously accorded

by the customer. This works like a reference point for the customer.

Space should always be provided for the customers own opinions this enables them to state any additional requirements or report any shortcomings that are not covered by the objective questions.

Normally, we deal various personnel at various levels in the customers organizationthe buyer, user, receiving inspector, finance and purchase person etc. surveying a number of respondents for each customer gives a complete perspective of customer satisfaction. It may be necessary to device a different questionnaire for each of them.

Respondents must be provided a way to express the importance they attach to various survey parameters. Respondents should be asked to give a weighting factor, again on a rating scale of say, 1 to 10, for each requirement. This gives a better indication of relative importance of each parameter towards overall customer satisfaction and makes it easier for suppliers to prioritize their action plans by comparing the performance rating (scores) with importance rating (weighing).

4.1 CONSUMER RESEARCH IN DIFFERENT DISCIPLINES

A considerable body of literature exists on consumption, consumer behavior and consumer decision making process.

Most of the consumer research focused on adopter categories, habits, attitudes and intentions rather that on actually measuring the satisfaction level with the service.

4.1.1 CONSUMER SATISFACTION PROCESS

The paramount goal of marketing is to understand the customer and to influence buying behaviour.

The process can be depicted as follows:-

Need recognition- realization of the difference between the desired and the current situation that serves as a trigger for entire process.

Search for information.

Pre purchase alternative evaluation.

 Consumption(utilization of the procured option)

Post purchase alternative re-evaluation.

Divestment(disposal of the unconsumed product and its remnants)

4.2 WAYS FOR MAINTAINING RELATIONS WITH THE ADOPTED BY OBC

CUTOMERS

The ability of the banking industry to achieve the socio-economic objectives and in the process bringing more and more customers into its fold will ultimately depend on the satisfaction of the customers. We have a strong belief that a satisfied customer is the foremost factor in developing our business. A need was felt by us at Oriental Bank of Commerce that in order to become more customers friendly the Bank should come out with Charter of its services for the customers. Citizens' Charter concept was considered as a base instrument to fill this need and accordingly this document was prepared. This document was made in consultation with the users and highlights our Bank's commitments towards the customer satisfaction, thus ensuring accountability and responsibility amongst its officials and staff. This Code for customers not only explains our commitment and responsibilities along with the redressed methods but also specifies the obligation on the part of customers for healthy practices in Customer-Banker relationships. This is not a legal document creating rights and obligations. The Code has been

prepared to promote fair banking practices and to give information in respect of various activities relating to customer service. We wish to acknowledge the initiative taken by the Ministry of Finance, Government of India and Ministry of Administrative Reforms and Public Grievances for encouraging us to bring out this Code. We maintain constant consultations with our clientele through various Seminars, Customer Meets, etc. to evaluate improve and widen the range of service to customer. However, all our customers are requested to keep us informed of their experiences about the various services rendered by the Bank and feel free to comment on this Code. We intend to bring it out in many Regional Languages in subsequent years.

COMMON PRACTICES FOLLOWED BY OBC BRANCHES

Display

business hours.

Render

courteous services.

Attend to all customers present in the banking hall at the close of business hours.

Provide separate 'Enquiry' or 'May I help you' counter at large branches.

Offer nomination facility to all deposit accounts (i.e. account opened in individual capacity) and all safe deposit locker hirers (i.e. individual hirers).

Display

interest rates for various deposit schemes from time to time.

Notify

change in interest rates on advances.

Provide

details of various deposit schemes/services of the Bank.

Issue

Demand Drafts, Pay Orders, etc.

Display Time-Norms for various banking transactions.

Pay interest for delayed credit of outstation cheques, as advised by Reserve Bank of India (RBI) from time to time.

Accord immediate credit in respect of outstation and local cheques upto a specified limit subject to certain conditions, as advised by RBI from time to time.

Provide

complaint/suggestion box in the branch premises.

Display address of Regional/Zonal and Central Offices as well as Nodal Officer dealing with customer grievances/complaints.

5.1 STATEMENT OF THE PROBLEM

This Study will help us to understand the consumers satisfaction about banking services and products. This study will help banks to understand, how a consumer selects, organizes and interprets the Quality of service and product offered by banks. The market is more aware and realistic about investment and returns from financial products. In this background this study tries to analyze the customer satisfaction towards banking services in general and Oriental Bank of Commerce in particular.

5.2 NEED FOR THE STUDY

The deeper the company understands of consumers needs and satisfaction, the earlier the product or service is introduced ahead of competition, the greater the expected contribution margin. Hence the study is very important.

This study will help companies to customize the service and product, according to the consumers need.

This study will also help the companies to understand the experience and expectations of the existing customers.

5.3 SCOPE OF THE STUDY

This study is limited to the consumers with in New Delhi city. The study will be able to reveal the preferences, needs, satisfaction of the customers regarding the banking services, It also help banks to know whether the existing products or services the are offering are really satisfying the customers needs.

5.4 OBJECTIVE OF THE STUDY

To have an insight into the attitudes and behaviors of customers. To find out the differences among perceived service and expected service. To produce an executive service report to upgrade service characteristics. To understand consumers preferences. To access the degree of satisfaction of the consumers

5.5 REASERCH METHODOLOGY

A descriptive study tries to discover answers to the questions who, what, when, where, and, sometimes, how. The researcher attempts to describe or define a subject, often by creating a profile of a group of problems, people, or events. Such studies may involve the collection of data and the creation of a distribution of the number of times the researcher observes a single event or characteristic (the research variable), or they may involve relating the interaction of two or more variables. Organizations that maintain databases of their employees, customers, and suppliers already have significant data to conduct descriptive studies using internal information. Yet many firms that have such data files do not mine them regularly for the decisionmaking insight they might provide.

This descriptive study is popular in business research because of its versatility across disciplines. In for-profit, not-for-profit and government organizations, descriptive investigations have a broad appeal to the administrator and policy analyst for planning, monitoring, and evaluating. In this context, how questions address issues such as quantity, cost, efficiency, effectiveness, and adequacy. Descriptive studies may or may not have the potential for drawing powerful inferences. A descriptive study, however, does not explain why an event has occurred or why the variables interact the way they do.

5.6 SAMPLE METHOD

Convenience sampling method is used for the survey of this project. It is a non-probability sample. This is the least reliable design but normally the cheapest and easiest to conduct .In this method Researcher have the freedom to choose whomever they find, thus the name convenience. Example includes informal pools of friends and neighbours or people responding to a newspapers invitation for readers to state their position on some public issue. 5.6.1 SAMPLE SIZE

Sample size denotes the number of elements selected for the study. For the present study, 100 respondents were selected at random. All the 100 respondents were the customers of different branches of Oriental Bank of Commerce.

5.7 SAMPLING METHOD

A sample is a representative part of the population. In sampling technique, information is collected only from a representative part of the universe and the conclusions are drawn on that basis for the entire universe.

A convenience sampling technique was used to collect data from the respondents.

5.8 METHOD OF DATA COLLECTION

To know the response, the researcher used questionnaire method. It has been designed as a primary research instrument. Questionnaires were distributed to respondents and they were asked to answer the questions given in the questionnaire.

The questionnaires were used as an instrumentation technique, because it is an important method of data collection. The success of the questionnaire method in collecting the information depends largely on proper drafting. So in the present study questions were arranged and interconnected logically. The structured questionnaire will reduce both interviewers and interpreters bias.

Further, coding and analysis was done for each questions response to reach into findings, suggestions and finally to the conclusion about the topic.

5.9 TYPES OF DATA

Every decision poses unique needs for information, and relevant strategies can be developed based on the information gathered through research. Research is the systematic objective and exhaustive search for and study of facts relevant to the problem Research design means the framework of study that leads to the collection and analysis of data. It is a conceptual structure with in which research is conducted. It facilitates smooth sailing of various research operations to make the research as effective as possible. PRIMARY DATA Primary data are those collected by the investigator himself for the first time and thus they are original in character, they are collected for a particular purpose. A well-structured questionnaire was personally administrated to the selected sample to collect the primary data. SECONDARY DATA Secondary data are those, which have already been collected by some other persons for their purpose and published. Secondary data are usually in the shape of finished products.

Two types of secondary data were collected for the preparation of the project work: Internal Data was generated from companys brochures, manuals and annual reports External Data, on the other hand, was generated from magazines, research books, intranet and internet (websites).

5.10 LIMITATIONS OF THE STUDY

Although the study was carried out with extreme enthusiasm and careful planning there are several limitations, which handicapped the research viz,

1.Time Constraints: The time stipulated for the project to be completed is less and thus there are chances that some information might have been left out, however due care is taken to include all the relevant information needed.

2.Sample size: Due to time constraints the sample size was relatively small and would definitely have been more representative if I had collected information from more respondents.

3.Accuracy: It is difficult to know if all the respondents gave accurate information; some respondents tend to give misleading information.

4. It was difficult to find respondents as they were busy in their schedule, and collection of data was very difficult. Therefore, the study had to be carried out based on the availability of respondents.

TABLE 6.1 SHARE OF DIFFERENT TYPES OF ACCOUNTS

SL. No.

NATURE OF ACCOUNTS

NUMBER OF RESPONDENTS

PERCENTAGE OF RESPONDENTS

1. 2. 3. 4. 5. Total

Saving A/Cs Current A/Cs Fixed Deposits Loans Others

78 9 4 3 6 100

78% 9% 4% 3% 6% 100%

Graph - 6.1 Classification based on nature of A/Cs

Saving A/Cs

Current A/Cs

Fixed Deposits

Loans

Others

Analysis: Above table shows that 78% respondents have Saving A/Cs, and 9% have Current A/Cs and rest of the respondents have 13% share of other A/Cs in total (which includes fixed deposits, loans, and other products)

Interpretation: This means most of the respondents are having Saving A/Cs which means the bank deposits are enriching as Saving A/Cs share is most.

TABLE 6.2

SATISFACTION OF RESPONDENTS WITH SERVICES OFFERED BY PNB BRANCH

SL. No.

RESPONSE

NUMBER OF RESPONDENTS 89 11 100

PERCENTAGE OF RESPONDENTS 89% 11% 100 %

1. 2. TOTAL

Satisfied Not satisfied

Graph - 6.2 Classification based on satisfaction level of respondents 100 No. of respondents 50
11 89

0
Satisfied Not satisfied

Analysis: From the above table it could be inferred that 89% of the consumers are satisfied with the service and quality of products of their bank. Only 11% of consumers are not satisfied.

Interpretation: Most of the respondents are satisfied with the service offered by
Oriental Bank of Commerce. Presently the bank offers varieties of services and the

customers are getting a good rate of return from their deposits. Customers are getting good service from the bank.

TABLE 6.3

RATINGS OF THE SERVICES OFFERED BY THE RESPONDENTS LIFE INSURANCE COMPANY

SL. No. 1. 2. 3. 4. 5. TOTAL

RATINGS EXCELLENT VERY GOOD GOOD AVERAGE POOR

NUMBER OF RESPONDENTS 05 09 76 06 04 100

PERCENTAGE OF RESPONDENTS 5% 9% 76% 6% 4% 100 %

Graph - 6.3 Classification based on Rating of the service offered by PNB branches

645 9

76
EXCELLENT VERY GOOD GOOD AVERAGE POOR

Analysis: From this table it could be inferred that 76% of the consumers have rated service offered as good, 9% of them have rated them as very good, and 05% of them have rated as excellent and average while only 4% have rated as poor

. Interpretation: Service offered by the bank is improving day by day. Returns consumers are getting are also attractive. Majority of the customers rates good, very good and excellent because of the customer service offered by the bank. Banks are providing a good service to the customers due to increased competition in the market. This may be the reason for more satisfaction TABLE 6.4

TABLE SHOWING MOTIVE BEHIND THE SELECTING PNB

SL.NO 1. 2. 3. 4.

ATTRIBUTE Brand name Customer service Interest Others

SCORE 56 30 12 2

RANK 1 2 3 4

Graph - 6.4 Motive behind the Selecting of OBC

60 50 40 No. of 30 respondents 20 10 0

56
30 12 2
Motives

Brand name

Customer service

Interest

Others

Analysis: This table show the strengths and weaknesses of the brand, and what are the important criteria or factors on which decision-making is done. From this table we can infer that consumers give more importance for Brand name, secondly they prefer satisfaction, and then returns on investment.

Interpretation: This purely shows that people are now looking forward for better customer service in addition to the brand name in which they are investing and the returns they are getting.

TABLE 6.5

CONSUMERS WILLINGNESS TO RECOMMEND THEIR LIFE INSURANCE COMPANY TO OTHERS

SL. No.

RESPONSES

NUMBER OF RESPONDENTS 92 08 100

PERCENTAGE OF RESPONDENTS 92% 8% 100 %

1. 2. TOTAL

Recommended Not recommended

Graph - 6.5 Classification based on the willingness to recommend OBC branch services to other banks

recommended

Not recommended

Analysis: From this table it can be noted that the majority of consumers (92%) would like to recommend their bank services to others and only 8% of consumers would not

like to recommend it to others.

Interpretation: Since the competition has increased in the field of benefits and service of banking. So customers are getting good service, so that they are willing to recommend their bank services to others.

TABLE 6.6

CONSUMERS WILLINGNESS TO SHIFT THEIR A/Cs TO OTHER BANKS

SL. No.

RESPONSES

NUMBER OF RESPONDENTS 8 92 100

PERCENTAGE OF RESPONDENTS 8% 92% 100 %

1. 2. TOTAL

Shift Doesnt shift

Graph - 6.6 Classification based on the willingness of respondents to shift their A/Cs to other banks

Shift

Doesn't shift

Analysis: From this table it can be noted that the majority of consumers (92%) doesnt like to shift their A/Cs to other banks.

Interpretation: The reason can be increasing customer satisfaction and quality services offered by the bank.

SUGGESTIONS & RECOMMENDATIONS

With regard to banking products and services, consumers respond at different rates, depending on the consumers characteristics. Hence I OBC should try to bring their new product and services to the attention of potential early adopters.

Due to the intense competition in the financial market, OBC should adopt better strategies to attract more customers.

Return on investment company reputation and premium outflow are most preferred attributes that are expected by the respondents. Hence greater focus should be given to these attributes.

OBC should adopt effective promotional strategies to increase the awareness level among the consumers.

OBC should ask for their consumer feedback to know whether the consumers are really satisfied or dissatisfied with the service and product of the bank. If they are dissatisfied, then the reasons for dissatisfaction should be found out and should be corrected in future.

The OBC brand name has earned a lot of goodwill and enjoys high brand equity. As there is intense competition, OBC should work hard to maintain its position and offer better service and products to consumers.

The bank should try to increase the Brand image through performance and

service then, only the customers will be satisfied.

Majority of the people find banking important in their life, so OBC should employ the strategies to convert the want in to need which will enrich their business.

CONCLUSION:

The project entitled A STUDY TO UNDERSTAND THE CUSTOMER SATISFACTION AT OBC has helped me in studying satisfaction about services and products offered to consumers.

Since the opening up of the banking sector, private banks are in the fray each one trying to cover more market share than the other.

Yet, OBC is far behind SBI, PNB. OBC must also be alert what with Private Banks (ICICI, HDFC) breathing down its neck.

I am sure the bank will find my findings relevant and I sincerely hope it uses my suggestions enlisted, which I hope will take them miles ahead of competition.

In short, I would like to say that the very act of the concerned management at OBC in giving me the job of critically examining consumer satisfaction towards financial products and services of the company is a step in their continual mission of making all round improvements as a means of progress.

I am sure the bank has a very bright future to look forward to and will be a trailblazer in its own right.

References:
1. Wikipedia Encyclopedia. E-learning. Accessible at: http://en.wikipedia.org/wiki/E-

learning 2. Ruiz JG, Mintzer MJ, Leipzig RM. The impact of e-learning in medical education. Academic Medicine. 81;3:207-212. Also accessible at: http://www.med.ufl.edu/oea/opfd/faculty/club_med/impact_of_elearning_in_medical_education.pdf www.obcindia.co.in 3. Source Unidentified.

Bibliography:
1. McKim J, Jollie C, Cantillon P. ABC of learning and teaching. BMJ 2003;326:870-873. Also accessible at: www.google.com, http://http://www.bmj.com/cgi/reprint/326/7394/870 www.obcindia.co.in,