CORPORTION BANK

IntroductionEvery institution has its start in modest initiatives but what makes it great is the passion of the people behind it. Carrying the legacy forward with an undaunted commitment to its vision, the journey of Corporation Bank truly epitomizes this. Started about 107 years ago in 1906, with an initial capital of just Rs.5000/-, Corporation Bank has recorded Rs. 2,36,611 Crore mark in business and even far more, with over 6164 service outlets across the nation, served by committed and dedicated 13,000 plus Corp Bankers. Proof of which is seen in its enviable track record in financial performance. We have many reasons to cheer, predominant of them is, being able to participate in nation building by empowering the rural and urban population alike. Today, we are proud that we are significant contributors to the growth of the country's economy. Early Mover Nationalised in 1980, Corporation Bank was the forerunner when it came to evolving and adapting to the financial sector reforms. In 1997, it became the Second Public Sector Bank in the country to enter capital market, the IPO of which was over- subscribed by 13 times. the Bank has many " firsts " to its credit - Cash Management Services, Gold Banking, m-Commerce, " Online " approvals for Educational loans, 100% CBS Compliance and more recently, its poineering efforts to take the technology to the rural masses in remotest villages through low-cost branchless banking - Business Corresponent model. All of which symbolise Bank's unswerved commitment to its customers to provide convenience banking. At Corporation Bank, what motivates us is the passion to excel in banking by maintaining highest standards of service to our customers, backed by innovative products and services which makes us one of the leading Public Sector Banks in the country, catering to a wide range of customers - from individuals to corporate clients.

Page | 1

The Logo

Sarve Janah Sukhino Bhavanthu

Prosperity for All

The Bank's motto " Sarve Janah Sukhino Bhavanthu " in Sanskrit, which means " Prosperity for All " is well-professed by the Bank in its day-to-day operations. The Bank's logo has various components, namely Kamadhenu (denoting wish-fulfillment), Kalpatharu (eternity), Balance (justice for all), Wheel (industrial progress) and Wheat Grains (agricultural prosperity) which stand for universal prosperity and as a wishfulfilling credo. The logo in its present form was incorporated in 1972 when the name of the Bank was changed from Canara Banking Corporation (Udipi) Ltd. to Corporation Bank Ltd.

Page | 2

History
The Foundation Corporation Bank came into being as Canara Banking Corporation (Udipi) Limited, on 12th March, 1906, in the temple town of Udupi, by the pioneering efforts of a group of visionaries. The Bank started functioning with just Rs.5000/- as its capital and at the end of the first day, the resources stood at 38 Rupees-13 Annas-2 Pies. The Founder President Khan Bahadur Haji Abdullah Haji Kasim Saheb Bahadur, committed to fulfill the long felt banking needs of the people and also to inculcate the habit of savings, provided the muchneeded impetus to founding a financial institution that would bring about prosperity to the society. The content of the first Appeal to the public dated 19th February, 1906 speaks volume about the lofty ideals and ethos behind the foundation. The Founder President Haji Abdullah declared that: "The Primary object in forming Corporation is not only to cultivate habits of thrift amongst all classes of people, without distinction of caste or creed, but also habits of co-operation amongst all classes. This is Swadeshism pure and simple and every lover of the country is expected to come forward and co-operate in achieving this end in view The days that followed : The initial growth was consciously cautious and need based. The first branch of the Bank was opened at Kundapur in 1923, followed by the second in Mangalore in 1926. The Bank stepped into the then Coorg State in 1934 by opening its seventh branch at Madikeri. In 1937 the Bank was included in the second schedule of Reserve Bank of India Act, 1934. Prosperity to All : In 1939, the Banks name changed from Canara Banking Corporation
Page | 3

(Udipi) Ltd., to Canara Banking Corporation Ltd., and strongly put forth its vision with the motto- Sarve Janah Sukhino Bhavantu which meansProsperity to All The second change in the name of the Bank occurred in 1972, from Canara Banking Corporation Ltd. to Corporation Bank Limited. and finally Corporation Bank following its nationalization on 15th April, 1980. Shouldering National objectives: The Bank took on the priorities of nationalization in full stride and emerged successful in fulfilling the national objectives, while sustaining its performance oriented culture and profit augmenting record. Amidst all this, the Bank crossed Rs.1000 crore-deposit mark in the year 1985 and launched into the 1990s with focus on high quality growth by embracing newer technology.

The end of first phase of Banking sector reforms in India had seen the Bank emerging as the most innovative and dynamic bank in the public sector, outshining other banks in terms of asset quality, capital adequacy, operational efficiency, well diversified income base, profitability, productivity, and strong balance sheet. The tremendous amount of confidence and loyalty reposed by the public in general and customers in particular, manifested it self in the overwhelming response to the IPO of the Bank in the year 1997. A Big Leap to the Big League: As on 31st March, 2012, the Total Business of the Bank was Rs.2,36,611 crore. The Total Deposit stood at Rs.1,36,142 crore and the Total Advances were at Rs.1,00,469 crore. The Networth rose to Rs.8,276 crore.

The Bank has Representative Offices at Dubai and at Hong Kong. Presently, the Bank has a network of 1500 fully automated CBS branches, 1274 ATMs and 3390 Branchless Banking Units across the country.
Page | 4

The Bank has extended Branchless Banking units to 3390 villages and has issued Smart Cards to all account holders in these villages for enabling them to operate their accounts at their doorsteps through the Business Correspondents appointed by the Bank. From 38 Rupees-13 Annas-2 Pies to a business level of Rs.2,36,611 crore and from a Networth of Rs.5,000/- to Rs.8,276 crore, the evolution of the Bank from a Nidhi to graduate as a Premier Public Sector Bank and from the early days of Swadeshism to postLiberalisation days has been a corporate success story. Weathering two world wars, economic depressions, imbibing the latest in technology, responding to financial reforms and the unique record of uninterrupted posting of profits right from its inception in 1906, only further strengthened its its commitment to the people.

Page | 5

Management
Board of directorsShri Ajai Kumar Shri Ashwani Kumar Shri Amar Lal Daultani Shri L. K. Meena Shri U. S. Paliwal Shri Vincent D' Souza Shri Kaushik Kumar Ghosh Shri Raj Kumar Agrawal Chairman & Managing Director Executive Director Executive Director Govt. Nominee Director RBI Nominee Director Workmen Employee Director Officer's Employee Director

Charterded Accountant Category Director Share holder Director

Shri Sushobhan Sarkar

Shri Kawaljit Singh Oberoi Share holder Director Shri S. Shabbeer Pasha Share holder Director

Page | 6

FINANCIAL SERVICES OFFERED BY CORP BANK

PERSONAL SERVICES-

1) Corp mahila power schemeCorp Mahila Power[MPower] is a special product brought out by the Corporation Bank to cater to the specific needs of women. Corp Mahila Power is a 3-in-1 Account for the modern age woman. MPower encourages thrift, promises Personal Loan upto Rs 1.00 lakh when needed most, and extends a Personal Accident Cover of Rs.1.00 lakh per account holder until the account is alive. What is more, a host of free facilities /services are also offered. Product Features1) Name

-Corp Mahila Power Account [MPower] 2) Target Group- Women in the age group of 21-60 years ]. - including Salaried employees [Govt/PSU/Private Sector], - Doctors, Advocates, Enterpreneurs - Women with independent source of regular income [like rentals, etc.] 3) Eligibility- Singly or in joint names. The first account holder to conform to the Target Group. Quarterly Average Balance Rs. 2500/-. Non-maintenance of QAB would attract service Charges. 4) Free facilities - Personalised Cheque Book - Debit/ATM Card - ABB - Internet Banking - SMS Banking

Page | 7

5)Special Add Ons- No annual service charges for - SMS/Mobile Banking & - Debit Card 6) FREE PERSONAL ACCIDENT INSURANCE COVER [up to the life time of the account] - Rs. 1.00 lakh per account holder. - In case of joint accounts, the first named person in the account would be getting the PA cover.

Page | 8

2) Savings Bank AccountOpen a Savings Bank account with CorpBank to enjoy a host of hi-tech services and facilities. International Debit Card - To shop at merchant establishments and to withdraw cash at all Visa ATMs worldwide. You can access CorpBank's network of online interconnected ATMs and also avail the National Electronic Funds Transfer [NEFT] facility through CorpBank ATMs across the country. Internet Banking facility - Access your account from anywhere in the world Any Branch Banking - With all our branches of the Bank networked across India, you can now bank with the Bank and not just a Branch. Access and transact in your account from any of the networked branches. Deposit / Withdraw Cash to / from your account, Instant Fund Transfers to any account at these branches, Deposit local cheques at remote centres for credit of your account elsewhere. SMS Banking facility - Access your Bank Account and carry out variety of banking transactions through your mobile phone. Corp Power Cheque - Multi City Cheque Facility: A powerful facility wherein your cheques are now payable at par at all CorpBank Branches. Available to select SB account holders. Other facilities - Passbooks / Account statements, Cheque books, Tax Payments, Insurance & Mutual Funds, Standing Instructions and all other facilities that you have been enjoying with us for more than 103 years now. Quarterly Average Balance - Rs 250/- at Rural Branches and Rs 500/- at other Branches. Non-maintenance of QAB attracts a service charge of Rs 75/- per quarter.

Page | 9

Who can Open a) An individual in his/her own name b) Individuals in their joint names with suitable repayment instructions c) Minor represented by parent/guardian d) Minor students above 10 years e) Clubs, Societies, Associations, Trusts, Executors, Educational Institutions, Administrators, HUF, etc.

3) Corp Classic High tech Hassle Free Savings Account-

A combination of Savings Bank and Term Deposit features. Amount over and above the minimum balance of Rs. 15000/- in CLSB portion of the account will be automatically converted into term deposits in units of Rs.1000/- each (subject to a minimum of 5 units to start with and in multiples of 5 units of Rs. 1000/-each thereafter). Whenever a cheque is issued, and there is shortage of surplus funds over and above the minimum balance, units of terms deposit are broken in such a manner so as to cause least loss to the depositor, the same is credited to the CLSB Account and cheque is passed. Special features : Facilities like, Auto Renewal Option of Deposits, Minimum Period Maximum Interest - option, Reinvestment Option, Periodical payment of interest [monthly/quarterly/half-yearly/ yearly] in case of FD, Fixed Maturity Date, are also available in this Scheme. International Debit Cards and SMS Banking facility are provided FREE of cost. Period of Deposit : Deposit can be opened for a period of 15 days to 3 years as per the customers choice. Auto opening and closing of term deposits digitally by the system is another prominent feature of this scheme. No need to remember, no need to
Page | 10

visit the Branch to convert excess balance in Savings Bank account manually to term deposits/ remember the maturity dates of term deposits. No handling of multiple Deposit Receipts. A comprehensive Pass Book will be given. Rate of Interest : 4.0% on daily balances maintained in SB portion and applicable interest rates for balance maintained in term deposit portion. For current interest rates for term deposits, Interest Payment : On or before 10th of February / August every year for amounts maintained in SB portion and monthly / quarterly for amounts in term deposits. Other facilities : All other facilities as available for Regular Savings Bank account are also available Minimum Balance : Rs 15,000 at all Branches.

4) The Salary Savings Bank AccountCorp PayRoll from CorpBank is aimed at providing a Hassle Free" PayRoll Administration Solution for all types of organizations. Eligibility Conditions Organisation should have a minimum of 25 employees Average Salary payout to be more than Rs 10,000 or Total Monthly Salary Payout to be more than Rs 2.5 lakhs Advantages to the Employer Reduces hassle of payroll administration Needs to provide salary details in prescribed file format along with one consolidated cheque Can even make salary payment online through the Bulk Pay facility of Internet Banking
Page | 11

Advantages to the Employee Accounts can be opened with Zero Balance Salary directly credited to the account of the employee SMS Alert when Salary is credited TOD facility available in case of emergency

Special Features TOD facility upto 50% of net salary for those employees whose salary is more than Rs 10000 p.m Free remittance be means of DD/PO upto Net Salary

Other features International VISA Debit Card Access to 1060+ CorpBank ATMs and 15000 VISA ATMs Any Branch Banking & Multi City Cheques Internet Banking SMS /Mobile Banking LIC Premium Payment through SMS / CorpBank ATMs Inter Bank Funds Transfer (NEFT) through Internet Banking/ATMs/SMS/Branches Visa Credit Card Bill Payment
Page | 12

 Gold Coins Mutual Funds Direct Tax Collections And all other facilities as applicable to Savings Bank Accounts

5) Corp New Gen - Students' SB account-

Corporation Bank is pleased to inform the introduction of a new Savings Bank account targeted at the student community. The Corp NewGen Students SB a/c has several value added services. The accounts have a reduced quarterly average balance, concession in service charges for issuance of DD/PO, collection of cheques, ABB transactions, Free Debit Card etc. The important benefits / features of the Corp Student SB a/c are as under: Who can open the Account? Only students who have completed 10 years of age and are pursuing regular courses can open these accounts. Existing regular SB accounts of students already opened with the Bank can also be converted to this new account. At the time of opening the account, the student has to furnish a copy of student ID card issued by the school/college.

Initial Deposit & Quarterly Average Balance (QAB)These accounts can be opened without any initial deposit. However, the a/c holder should maintain a quarterly average balance of Rs 100/- thereafter. Special facilitiesIn order to encourage students to open Savings Bank accounts with the
Page | 13

Bank, it has been decided to offer the following facilities / services: No annual maintenance charges for Debit Cards No service charges for purchase of DDs / POs through the account upto a maximum of 5 instruments per month No service charges for collection of cheques upto a maximum of 2 instruments per month No service charges for Any Branch Banking transactions

Other facilities available SMS Banking Internet Banking Personalised Cheque Book facility (For students above 18 years of age) Railway ticket booking / Mobile Recharge

6) Corp 4 - in - 1 a/c (Current a/c)Corporation Bank offers an assortment of current account products that is tailor made to suit all financial requirements of all our customers be it individuals or corporate.

Page | 14

Open the account suited for you to enjoy a host of facilities that will take care of your entire banking requirements. Corp Companion - Any Branch Banking Facility : With all our branches of the Bank networked across India, you can now bank with the Bank and not just a Branch. Access and transact in your account from any of the networked branches. Deposit / Withdraw Cash to / from your account, Instant Fund Transfers to any account at these branches, Deposit local cheques at remote centres for credit of your account elsewhere. Corp Power Cheque - Multi City Cheque Facility : A powerful facility wherein your cheques are now payable at par at any CorpBank branch in India. Adding more power to your Current Account. Funds Transfer- Instantly transfer funds to any account maintained at any of our networked branches across India from your account. Demand Drafts With our national presence, you can draw Demand Drafts in over 450 centres across the country from Jammu to Nagercoil and from Bhuj to Gangtok. Corp Net - Internet Banking: Corp Net, our Internet Banking service allows you to access your account any part of the world anytime. Verify your account balances View and download your statement of accounts Make payments to third parties & transfer funds using Corp E-cheque Request for cheque books, demand drafts, Stop Payments Pay Utility Bill Payments online And many more services

Page | 15

Corp Convenience - International Debit cum ATM Card : Corp Convenience, our International Debit Card assists you in accessing your account at over 1060+ Corp Bank ATMs in addition to more than 10 lakh VISA ATMs worldwide. Moreover you can use the Card at more than 10 million shopping outlets worldwide displaying the VISA logo. Other facilities- Account statements, Standing Instructions and all other facilities that you have been enjoying with us for over 103 years. We also have a unique product, Corp Payroll to make your salary payments to your employees without any bother.

7) Millionaire RD AccountRecurring Deposit is a term deposit wherein a fixed monthly installment is deposited by the customer for a predetermined period. At the end of the period, the customer will get back the amount deposited along with applicable interest.

Millionaire RD is a variant of the above scheme wherein the customer on depositing a specified amount of money for the corresponding period is assured to get a maturity value of more than Rs One Million at the end of the tenure.

In case of premature withdrawal, there shall be penalty of 1% on the contracted interest rate or on the interest rate for period run, whichever is lower. Loan facility is provided upto 90% of the deposit. NO TDS will be deducted on any kind of Recurring Deposit.

To open a Millionaire RD, please contact nearest Branch. In case you are not having an existing relationship with the Bank, you would need to provide documents establishing Proof of Identity and Proof of Address. General: 1 year to 10 years: 9% Senior Citizen:1 year to 10 years: 9.50% Interest rates are subject to change from time to time
Page | 16

Who can Open: Account can be opened by An individual in his/her own name, Individuals in their joint names with suitable repayment instructions, Minor represented by parent/guardian, Clubs, Societies, Associations, Trusts, Executors, Educational Institutions, Administrators, HUF, Govt. Departments, etc.

To open a Millionaire RD, you may contact our nearest Branch. In case you are not having an existing relationship with the Bank, you would need to provide documents establishing Proof of Identity and Proof of Address. If you are not maintaining SB account with the Bank, you would need to ensure that monthly installments are paid by means of cheque / cash at the branch where account is opened. 8) Corp Pragathi AccountCorporation Bank has introduced a No Frills SB a/c with zero balance facility. The account, Corp Pragathi SB a/c can be opened with an initial deposit of Rs 10/- and will provide the account holder the basic banking facilities. No penalty will be levied even if the balance in the account drops below Rs. 10/-. Any individual, including minors above the age of 10 years, who are eligible to open a normal Savings Bank account, can open the account. The account will be available in all branches of the Bank. Account holders will be provided chequebook facility, collection, remittance facilities etc.

Page | 17

 CORPORTE SRVICES-

1) Cash Management-

Bank's decades of experience in managing the CMS Business has helped us to offer a wide range of sophisticated Cash Management Solutions to corporates, improving overall efficiency and accuracy in operations, apart from substantial savings on cost. We have been continuously striving to provide innovative solutions in line with the changing corporate needs making use of state of the art technology. The Bank has set up 25 specialized outlets all over the country, exclusively to cater the needs of the Corporates. We have at present more than 1600 + satisfied customers, including many blue chip companies. CMS PRODUCTS: The Bank's Tech savvy CMS Products are designed to suit the contemporary needs of Corporate Customers providing flexible and Robust MIS that are compatible with most platforms/ERP solutions. Fast Collection Service: Fast Collection Service (FCS) is the premier product of the Bank under CAPS range of products. FCS envisages elimination of one leg of movement of cheques from the drawer to the beneficiarys location and back speeding up the whole process. The corporates can access the collections effected at 301 locations (OPERATING CENTRES) covered under the arrangement across the country within 24 to 48 hours, at a location of corporates choice. Corp Clear Services [ CCS ]: CCS ensures quick collection of outstation cheques, by providing assured credit on pre-determined days as per the choice of the corporate customer in respect of upcountry cheques deposited with specialised CAPS branches, irrespective of the day of realisation. The need-based product range under this segment includes Corp Clear Services - CCS 8th Day credit*
Page | 18

Corp Express Services - CES 4th Day credit* Corp Instant Services - CIS Next Day credit (* for cheques drawn on locations where CorpBank has branches) Corp Collect Service [ CCT]: Corporates, who prefers payments on cheque realisations may use our Corp Collect Service that operates on Realise and Pay basis. The Service is extended for both within and outside network locations. All the benefits of other corp clear services do come along with Corp Collect Service. Corp Comfort Services: Waiting unduly longer periods and without certainty as to the status of realisation of outstation cheques would hamper the flow and financial planning in the business. With an assured credit on 8th day in respect of outstation cheques falling outside the Bank's branch network, CorpComfort Service proves to be an effective blend of CorpClear Service and CorpInstant Service. Corp Remit Services: CorpRemit Service meets the corporates wholesale payment requirements such as statutory payments, payments to vendors/suppliers, banking requirements, inter branch transfers etc., Corporates need just to hand over the payout instructions file along with the funding cheque to CAPS branch for further servicing to be taken over by the CAPS outfit. One of the salient features of CorpRemit is that corporates get confirmation on the payouts effected. Remittances can also be sent through RTGS to over 25000 bank branches across the country. Corp Pay Services: CorpPay Service facilitates corporates to make retail payments very effectively. Some of the payouts that can be very efficiently and conveniently handled include disbursal of incentives, equity and debt servicing to the satisfaction of investors, salary/wages payouts etc. All that corporates need to do is to furnish the payout details in magnetic media/mail and provide the funding thereof. Value added service such as despatch of payout instrument to beneficiary is also made available. All these are available at a very competitive price
Page | 19

exclusively for corporates. SpeedCash: The product envisages remittance of cash upto 50000/- to the beneficiaries through all the Branches of the Bank. The product is well received by exchange houses for cross border remittances. Under this product, the remitter can remit a sum of Rs.50000.00 through any Exchange House (at present through UAE Exchange and Wall Street Exchange) branches situated in Gulf and other countries which can be paid instantly by Cash to the beneficiary. Beneficiary need not have an account in our branches. The product can be used by top rated corporate houses within the country for effecting cash disbursal across country. Speed Remittance: Under the arrangement, the NRIs can send remittances through exchange houses across globe. The exchange houses send the details to our Nodal branch (PPC Branch) at Bangalore who in turn credit the same to the beneficiary accounts maintained at any of our branches. In case the beneficiary account is not held in our Bank, a pay order can be issued at the destination, which can be collected by the beneficiary. 1. CHEQUE WRITING FACILITY 2. RTGS COLLECT 3. AUTO MANDATE DEBIT CLEARING 4. CENTRALISED DEBITING OF CHEQUES 5. BULK PAYMENT THROUGH INTERNET 6. CASH PIF 7. CREDIT/DEBIT SWEEP 8. CHANNEL FINANCING 9. PAYMENT GATEWAY SOLUTIONS

2) Corp FastEfficient money management is the key to any successful business. That's why we have introduced Corp Fast to ensure that your money gets to you in the shortest possible time.
Page | 20

What is CorpFast? CorpFast is an innovative solution which facilitates speedy realization of outstation cheques and instruments using latest communication technology Outstation instruments drawn on a location where we have a fully automated branch and given for collection at any of our fully automated branch located in major cities will be quickly realized and credited to your account within a short span of 8 days, thus ensuring you of fast and responsive service. Corp Rental Corp Rental - Encash your future rent receivables from commercial properties 1.Introduction: The Scheme envisages financing the owner of the commercial properties against future rent receivables for the unexpired period of lease specified in the lease agreement. 2. Eligibility: Eligible applicants for financing under the Scheme would be Individuals/ Partnership Firms/ Corporates/ Trusts/ HUFs, owning commercial buildings let out to reputed organisations, where the unexpired period of lease is generally more than three years. NOTE: Age of the commercial building leased/ let out shall not be more than 15 years. 3. Purpose The loan may be availed for any productive purpose such as taking up new projects, business or towards contingencies or to meet domestic/ personal/ any other commitments. 4. Quantum of Loan The minimum loan amount is Rs.5 lakhs .No upper ceiling [subject to prudential exposure limits fixed by the Bank]. Only fixed loans are to be considered under the Scheme
Page | 21

5. Assessment of Eligible Loan Amount & Margin The quantum of loan should be restricted to the extent of 70% of rent receivable net of TDS, Taxes and Rent Deposit with 30% margin during the unexpired period of the lease [upto a maximum of 120 months only] 6. Security Charge over rent receivables and equitable mortgage of building property whose rent is charged to the bank. 7. Third Party Guarantee In the case of loans to partnerships, Trusts and Private Ltd. Companies, personal guarantee of partners, Trustees and promoter directors, respectively, should be obtained without fail. No separate third party guarantee need be insisted upon in such cases. In all cases other than Corporates, suitable third party guarantee should invariably be obtained. 8. Rate of Interest: 14.25% with effect from 11.08.2008 9. Repayment: Loan shall be repaid in Equated Monthly Instalments within the unexpired period of lease or 120 months (maximum), whichever is less. 10. Processing Charges: A one time upfront fee of 0.75%on the loan amount should be collected as per the procedure.

Page | 22

3) Working CapitalThe working capital limits would be considered only after the project nearing completion and after ensuring full tie-up of the term loan requirements of the borrower. These limits would be either in the form of fixed loans or running accounts and / or bill financing facility. The finance extended under this category would be for meeting the funds requirements for day to day operations of the units i.e, to meet reccurring expenses such as acquisition of raw material, the various expenses connected with products, conversion of raw materials into finished products, marketing and administrative expenses, etc.. In tune with the Reserve Bank of India guidelines on Loan System for delivery of bank Credit for working capital purposes to larger borrowers, the same would be extended in the form of fixed loan (working capital Demand loan) and cash credit (running account) in the ratio of 60:40 in respect of borrowers enjoying aggregate working capital limits of Rs.10 crore and above from the Banking system. The working capital demand loan facility shall be for a minimum fixed term of 7 days subject to roll over at the option of the borrower concerned. Eligible Working Capital Limits would be assessed by adopting various methods such as Projected Turnover Method, Permissible Bank Finance Method, Cash Budget Method and Net Owned Funds Method, depending upon the type of borrower, the aggregate working capital facility enjoyed from the banking system, the scale of operation, nature of activity/enterprise and the duration/ length of the production cycle, etc.. The working capital limits would require such security and personal/ third party guarantees as applicable to general lending norms of the bank and risk perception in respect of individual borrowal account.

Page | 23

4) Term FinanceThe Bank extends Term Loans for capital investments being made by the clients on account of expansion of existing enterprise or for establishment of a new enterprise. Term Loans are also extended to clients for project implementation purposes, to meet non-reccuring expenditure of long term nature, etc.. The Term Loans are also considered for investments in personal segment such as housing, vehicle purchases, etc. The aggregate outstanding quantum of Term Loans at any point of time is determined by the Asset-Liability Management Committee of the Bank in tune with the Asset Liability Matrix to avoid mis-match in the same. The rate of interest on Term Loans depends upon the quantum of loan, its purpose, type of borrower, the gradation applicable and the nature of loan. Adequate security for the Term Loans by way of hypothecation/ mortgage/ charge over the assets created out of the loan proceeds and such other collaterals depending upon the borrower, duration of credit, type of activity and the risk perception, as stipulated by the sanctioning authority shall be provided by the applicants. In addition, personal guarantee of promoter directors/ partners of Firm/ proprietors etc. and additional third party guarantee of a person/s of adequate networth acceptable to the bank shall be given for such loans. The repayment of the term loans would be in periodic Instalments with initial moratorium, if needed, during the period of project implementation. The periodicity and the nature & quantum of Instalments shall be based on the time and quantum of cash generation, operating costs and the surplus available at the disposal of the borrower.

Page | 24

5) Project FinanceThe proposals for project finance would be considered by the bank on a selective basis in view of the larger outlay of funds an longer duration of credit which may have an adverse impact on bank's Asset-Liability Management system and strain on its liquidity. Usually such projects would be operationalised through consortium arrangement along with the Term Lending Financial Institutions and other public/ private sector Banks. The project would be appraised by the Lead Bank of the consortium and all other banks would accept the appraisal made by the lead bank. If required, the assistance of the professionals in the line/ project appraisal groups of FIS/ Commercial Banks would be obtained for the appraisal. Before extending finance for Projects, the economic feasibility an financial viability of the project in relation to the macro economic conditions prevailing at the time of conceptualisation of the project and also the likely scenario that may prevail during the normal life span of the project should be established. The project should be able to withstand reasonable levels of variation in crucial parameters which should be established by sensitivity analysis of the cash flows. The means of finance for the project alongwith provisions to meet contingencies such as cost/ time overrun should be established. The entire source of funds for the project from sources otherthan that by the promoters shall be fully tied-up before sanction/ disbursement of the limits. Wherever the project is one of unusually longer duration such as infrastructure development, the involvement of agencies such as Financial Institutions and ways of reducing the blockage of bank's fund that are sourced mainly out of short term lending institutions, take-out financing, securatisation, Inter-Bank participation Certificates, etc. would be resorted to. The disbursements under project Finance would be made strictly in tune with the sanction terms, only after ensuring the end use of funds already disbursed by the consortium, meeting the required margin at each stage of project implementation and certification by the competent consultants/ specialists as per the procedure in vogue from time to time and as decided by the consortium.
Page | 25

The rate of interest on such credit facilities would be determined based on the borrower gradation and the interest rate policy of the bank from time to time. The credit facilities shall be secured by tangible assets and collaterals as may be required based on the nature of project, quantum and duration of the credit, anticipated return on investment and risk perception. In addition to the above, Bank's usual normal lending norms and policy guidelines in force from time to time would be equally applicable to project finance cases also.

ForexCorporation Bank has a wide range of forex services to offer for both business and non business needs. The Bank undertakes Collection/Negotiation/discount of Export Bills. The Bank offers to advise Export Letters of Credit and also add confirmation thereof. The Bank arranges external commercial Borrowings The Bank offers all types of credit facilities to exporters and importers, including foreign exchange denominated finance to resident entities. The Bank offers inward and outward foreign exchange remittance services for travel,medical and other personal requirements. The Bank issues travellers cheques, in foreign exchange and deals in foreign currency. Nation-wide network of 33 designated branches handling foreign exchange business, covering important business centres in India
Page | 26

6) Gold Card Scheme for Exporters1. Objectives of the Scheme: Promotion of export by extending various facilities to exporters having good track record, on better terms. 2. Eligibility Criteria: All exporters including those in small and medium sectors and conforming to the borrower gradation category of CB1 and CB2 Exporter clients, with good track record for minimum 3 years Accounts classified as `standard' during the last 3 financial years Exporter clients earning profits continuously for the last 3 years, having positive tangible networth and positive net working capital as at the end of the last financial year.

However, exporters black-listed by ECGC or included in RBI Defaulters' List/ Caution List or having overdue export bill in excess of 10% of the current year's turnover will not be eligible. 3. Fixation of Credit Limits In-principle' limits will be sanctioned for a period of 3 years with a provision for automatic renewal subject to fulfilment of the terms and conditions of sanction and satisfactory conduct of the account subject to annual review. The performance of the exporters vis-a-vis projections will be reviewed annually with a view to decide whether the benefits of better terms and conditions under the Gold Card Scheme are to be continued/ amended/ withdrawn. 4. Rate of Interest : Concession by 25 bps on Rupee Export Credit 5. Tenure : The Gold Card will be issued initially for a period of 3 years, which shall be automatically renewed for a further period of three years unless there are adverse features/ irregularities in the account.

Page | 27

 NRI SERVICES1) Xpress Money: Global Money Transfer Service:

We have entered into a strategic tie-up with UAE Exchange and Financial Services Ltd for facilitating global Money Transfer Service, Xpress Money. UAE Exchange and Financial Services Ltd is the principal agent for UAE Exchange Centre LLC, Abu Dhabi, for facilitating Xpress Money Service in India. Xpress Money is available to our account holders and non-account holders, under the Money Transfer Service Scheme by RBI. It facilitates instant payment of foreign inward remittance in cash (for amount less than Rs. 50,000/-) to individual beneficiaries in India within minutes. The service is a boon to NRIs and their families in India as well as foreign tourists visiting India and foreign students studying in India. It is a hassle free instantaneous payment to beneficiary against photo identification. Xpress Money in India operates within the purview of RBI guidelines and within the following framework. 1. Only personal remittance such as remittance towards family maintenance and remittances favouring foreign tourists visiting India are permissible. 2. Maximum permissible limit per transaction for Xpress Money is Rs. 50,000/, per beneficiary 3. Only 12 transactions per beneficiary are permitted in a calendar year Advantages Extensive network across India Receive money as cash in minutes No Bank account required No back-end charges Phone and pay service at select locations SMS to sender on payment confirmation Full refund on cancellation

Page | 28

Process Flow for Xpress Money

Remitter fills up the Xpress Money form in an Xpress Money outlet abroad and pays the principal amount and charges

Details are entered in the system, a receipt is given to the remitter with a unique 16 digit XPIN, Sender informs beneficiary the XPIN, and the amount remitted

Beneficiary visits the Receive Agent, fills up the Receive Now Form with details of XPIN and produces a valid photo identity

The location confirms the transaction, Beneficiary Receives Cash, Sender receives SMS on payment collection

Page | 29

2) Bank Accounts for Non-Resident Indians-

Particulars

Foreign Currency (Non-Resident) Account (Banks) Scheme (FCNR(B) Account

Non-Resident (External)Rupee Account Scheme (NRE Account)

Non-Resident Ordinary Rupee Account Scheme (NRO Account Any person resident outside India (other than a person resident in Nepal and Bhutan). (individuals / entities of Bangladesh / Pakistan nationality / ownership as well as erstwhile OCBs require prior approval of RBI)

Who can open an account

NRIs (individuals / entities of Bangladesh/ Pakistan nationality/ownership require prior approval of RBI)

NRIs (individuals / entities of Bangladesh / Pakistan nationality/ownership require prior approval of RBI)

Joint account In the names of two or In the names of two or May be held more non-resident more non-resident jointly with individuals individuals residents Nomination Permitted Currency in which Permitted Permitted Indian Rupees
Page | 30

Pound Sterling, US Indian Rupees Dollar, Japanese Yen,

account is Euro, Canadian Dollar denominated and Australian Dollar Whether Repatriable Repatriable Repatriable Not repatriable except for the following in the account 1) current income 2) up to USD 1 million per financial year (AprilMarch), for any bonafide purpose out of the balances in the account / sale proceeds of assets in India acquired by way of inheritance / legacy inclusive of assets acquired out of settlement subject to certain conditions Savings, Current, Recurring, Fixed Deposit

Type of Account

Term Deposit only

Savings, Current, Recurring, Fixed Deposit

Page | 31

Period for fixed deposits Rate of Interest

For terms not less than At the discretion of the As applicable 1 year and not more bank to resident than 5 years. accounts Subject to cap :LIBOR / SWAP rates Plus 100 basis points for the respective currency / corresponding maturities Subject to cap :Fixed Deposits LIBOR / SWAP rates, as on the last working day of the previous month, for US Dollar of corresponding maturities plus 175 basis points Savings Bank Account Interest rate shall be at the rate applicable to domestic savings account. Operations on the account in terms of Power of Attorney is restricted to withdrawals for permissible local payments or remittance to the account holder himself through normal banking channels Banks are free to determine interest rates for term deposits

Operations by Power of Attorney in favour of a resident by the nonresident account holder

Operations on the account in terms of Power of Attorney is restricted to withdrawals for permissible local payments or remittance to the account holder himself through normal banking channels.

Operations on the account in terms of Power of Attorney is restricted to withdrawals for permissible local payments or remittance to the account holder himself through normal banking channels

Page | 32

3) Money Transfers made Easy-

Corp Speed Cash/ Instant Cash : This facility is provided to NRIs based in Gulf & Middle East to remit funds to beneficiaries in India up to Rs. 50,000/-. Beneficiary need not maintain an account with Corporation Bank. Payment will be made to the beneficiary in CASH.

Rupee Drafts : This facility is provided to NRIs based in Gulf & Middle East to remit funds to beneficiaries in India by purchasing Rupee Demand Drafts from Exchange House outlets, payable at select Corporation Bank Branches in India and send it to the Beneficiary. The beneficiary can present the Demand Draft in local clearing or otherwise and get the funds credited to his/her account. Rupee Draft facility is presently available at all the outlets of Purushottam Kanji Exchange Co., Muscat Dubai Exchange Centre, Dubai Remittance services across the globe : Apart from the products available to specific geographical area, Corporation Bank also provides universal products, which can be availed by you irrespective of your country of stay. Few of them are: Demand Drafts / Personal Cheques in Foreign Currency : You can send DDs/ Personal Cheques denominated in Foreign Currency. Corporation Bank shall collect the same and credit to the beneficiarys account with the Bank. TT/Wire Transfer (SWIFT) : NRI can remit money in any freely convertible Foreign Currencies for the credit of self or any beneficiarys account with any branch of Corporation Bank through SWIFT messaging system. For effecting a successful transfer through SWIFT, NRI may approach his/her banker and instruct them to
Page | 33

transfer funds to the beneficiarys account through SWIFT by providing necessary details. We have given below the details and the steps to be followed by NRI while effecting the remittance via any one of the two channels.

4) MONEY GRAM FACILITY AT OUR BRANCHES : Corporation Bank has now launched the Money Gram product at all branches of the Bank. NRI clients can now walk in at any Branch of our Bank and claim the remittances in a few minutes.

Page | 34

Annexure
Name: Occupation:

1. Do you use banking services provided by Corporation bank? Yes No 2. According to you, Does bank provide useful financial services? Yes No 3. Does the banks guide you while making investments? Yes No 4. Do the staff members of the bank properly handle customers? Take time to understand customers needs. Explained the products well. The information given was clear and easy to understand 5. Does the bank have any ATM facility? Yes No 6. Are you satisfied with the functioning of the bank? Good Satisfactory Needs Improvements 7. Do you think that some changes should be made in the services provided by the bank? Yes No

Page | 35

Findings from Customer survey

1. Do you use banking services provided by Corporation bank? Yes No

Usage
15% Yes No 85%

2. According to you, Does bank provide useful financial services? Yes No

10%

Yes No 90%

Page | 36

3. Does the banks guide you while making investments? Yes No

30%

Yes 70% No

4. Do the staff members of the bank properly handle customers? Take time to understand customers needs. Explained the products well. The information given was clear and easy to understand

Staff Support

30%

20% Take time to understand customers needs Qtr Explained the products well 50% The information given was clear and easy to understand

Page | 37

5. Does the bank have any ATM facility? Yes No

ATM
10%

Yes No 90%

6.

Are you satisfied with the functioning of the bank? Good Satisfactory Needs Improvements

Functioning of bank

20% 40% Good Satisfactory 40% Needs improvements

Page | 38

7. Do you think that some changes should be made in the services provided by the bank? Yes No

Need of changes

40%

60%

Yes No

Page | 39

Findings
SWOT Analysis

Strength 1. Equal presence in rural and urban areas 2. Strong Financial performance 3. Employee base of over 12,000 people 4.Customised banking solutions Weakness 1. Lack of Pan India presence 2. Less publicity and branding in comparison with leading banks Opportunity 1. Innovative products and services 2. Government funding Threats 1. Economic crisis and volatile markets 2. Changing RBI policy 3. Presence on other banks

Competitors 1. SBI 2. Andhra Bank 3. Allahabad bank 4. Canara Bank

Page | 40

Conclusion

Inspite of being more than 100 years old, Corp-bank faces a challenging task to acquire and retain customers in the highly competitive India retail banking industry. An important aspect of this is to build a strong brand image that is tied to the services offered. The article set out to explain the effect of the Branchless Banking initiative of Corp-Bank on its brand image. In trying to achieve this objective, a thorough analysis of all existing models of Branchless Banking was carried out and it was found that the models that help take the bank to the rural areas are much more effective since they help Corp-Bank play to the strength of its brand. At the same time, it would serve the bank well to clearly demarcate offerings made to urban and rural customers and brand them accordingly to gain maximum mileage.

Page | 41