Professional Documents
Culture Documents
Project report
On
Conducted by
University of Mumbai
Through
Submitted by
Nabeel Shaikh
MMS
This is to certify that Mr. Nabeel Shaikh, a student of Rizvi Institute of Management
Studies and Research, of MMS IV bearing Roll No.73 and specializing in Finance has
successfully completed the project titled
Under the guidance of Prof. Shubash Raje in partial fulfillment of the requirement of
Masters of Management Studies by University of Mumbai for the academic year 2015
2017.
________________
Prof. Shubash Raje
Project Guide
________________ _______________
Prof. Umar Farooq Dr. Kalim Khan
Academic Coordinator Director
ACKNOWLEDGEMENT
I take this opportunity to thank the University of Mumbai for giving me a chance to do
this project. Firstly, I owe my deepest gratitude to my project guide Prof. Shubash Raje
for his guidance, care and moral support without which this project would have really
been a distant dream.
I thank the teaching and non-teaching staff of Rizvi Institute of Management Studies and
Research for providing encouragement and valuable inputs required for completion and
enrichment of this project.
I would like to thank each and every person who directly or indirectly helped me in the
completion of the project. This acknowledgement would surely be incomplete without
thanking my parents, who raised me, taught me and supported me throughout the years. A
special thanks to my mother who was instrumental in instilling the love of food &
cooking in me, which resulted in the topic of this project
To my parents, I dedicate this dissertation project. Lastly, and most importantly, I thank
God for making all this possible.
EXECUTIVE SUMMARY
This study has been conducted with a variety of important product objectives of bank in
mind. The following provides us with the chief objectives that have tried to achieve
through the study. The extent to which these objectives have been met could judge from
the conclusions and suggestions, which appear in the later of this study.
Sr No Particulars Page no
1 Organizational Structure of Banks in India 07
2 CLASSIFICATION OF BANKS 07
4 Function of a bank 12
5 Commercial bank 12
6 Bank of Bengal 17
7 Branches of Nationalizes Bank 18
8 Sector of Nationalizes Bank 19
Banking in India in the modern sense originated in the last decades of the 18th
century. The first banks were Bank of Hindustan (1770-1829) and The General Bank
of India, established 1786 and since defunct.
The largest bank, and the oldest still in existence, is the State Bank of India, which
originated in the Bank of Calcutta in June 1806, which almost immediately became
the Bank of Bengal. This was one of the three presidency banks, the other two being
the Bank of Bombay and the Bank of Madras, all three of which were established
under charters from the British East India Company. The three banks merged in 1921
to form the Imperial Bank of India, which, upon India's independence, became the
State Bank of India in 1955. For many years, the presidency banks acted as quasi-
central banks, as did their successors, until the Reserve Bank of India was established
in 1935.
In 1969 the Indian government nationalised all the major banks that it did not already
own and these have remained under government ownership. They are run under a
structure known as 'profit-making public sector undertaking' (PSU) and are allowed to
compete and operate as commercial banks. The Indian banking sector is made up of
four types of banks, as well as the PSUs and the state banks; they have been joined
since the 1990s by new private commercial banks and a number of foreign banks.
What is Bank?
According to the Oxford dictionary Bank can be defined as,
An establishment for the custody of money, which it pays out, on a
customers order. Banking Company in India has been defined in the Banking
Companies Act 1949 as, One which transacts the business of banking which means
the accepting, for the purpose of lending or investment of the deposits of money from
the public, repayable on demand, or otherwise and withdraw able be cheque, draft,
order or otherwise.
The Indian banking system has Reserve Bank of India (RBI) as the apex body for all
matters relating to the banking system. It is the Central Bank of India. It is also
known as the Banker to All Other Banks.
1) Pre-Nationalization Era:
In India, the business of banking and credit was practices even in very early
times. The remittance of money through Hundies, an indigenous credit instrument,
was very popular. The hundies were issued by bankers known as Shroffs, Sahukars,
Shahus or Mahajans in different parts of the country. The modern type of
banking, however, was developed by the Agency Houses of Calcutta. During the
early part of the 19th Century, volume of foreign trade was relatively small. Later on,
as the trade expanded, the need for banks of the European type was felt and the
government of the East India Company took interest in having its own bank. The
government of Bengal took the initiative and the first presidency bank, the Bank of
Calcutta (Bank of Bengal) was established in 1840. In 1840, the Bank of Bombay
and IN 1843, the Bank of Madras was also set up.
These three banks also known as Presidency Bank. The Presidency Banks had their
branches in important trading centers but mostly lacked in uniformity in their
operational policies. In 1899, the Government proposed to amalgamate these three
banks in to one so that it could also function as a Central Bank. However, the
conditions obtaining during world war period (1914-1918) emphasized the need for a
unified banking institution, as a result of which the Imperial Bank was set up in1921.
The RBI (Reserve Bank of India) was established in 1935 as the Central Bank of the
Country. In 1949, the Banking Regulation act was passed and the RBI was
nationalized and acquired extensive regulatory powers over the commercial banks. In
1950, the Indian Banking system comprised of the RBI, the Imperial Bank of India,
Cooperative banks, Exchange banks and Indian Joint Stock banks.
2) Nationalization Stages:
Nationalization of banks paved way for retail banking and as a result there has
been an alt round growth in the branch network, the deposit mobilization After
Independence, in 1951, the All India Rural Credit survey, committee of Direction with
Shri. A. D. Gorwala as Chairman recommended amalgamation of the Imperial Bank
of India and ten others banks into a newly established bank called the State Bank of
India (SBI). The Government of India accepted the recommendations of the
committee and introduced the State Bank of India bill in the Lok Sabha on 16th April
1955 and it was passed by Parliament and got the presidents assent on 8th May 1955.
In 1959, the SBI (Subsidiary Bank) act was proposed and the following eight state-
associated banks were taken over by the SBI as its subsidiaries.
With effect from 1st January 1963, the State Bank of Bikaner and State Bank of
Jaipur with head office located at Jaipur. Thus, seven subsidiary banks State Bank of
India formed the SBI Group.
On 19th July 1969, then the Prime Minister, Mrs. Indira Gandhi announced the
nationalization of 14 major scheduled Commercial Banks each having deposits worth
Rs. 50 crore and above.
Later the Government Nationalized six more commercial private
sector banks with deposit liability of not less than Rs. 200 crores on 15th April 1980,
viz.
Andhra Bank.
Corporation Bank.
New Bank of India.
Oriental Bank of Commerce.
Punjab and Sind Bank.
Vijaya Bank.
In 1969, the Lead Bank Scheme was introduced to extend banking facilities to every
corner of the country. Later in 1975, Regional Rural Banks were set up to supplement
the activities of the commercial banks and to especially meet the credit needs and of
course employment.
The first year after nationalization witnessed the total growth in the agricultural loans
and the loans made to SSI by 87% and 48% respectively. The overall growth in the
deposits and the advances indicates the improvement that has taken place in the
banking habits of the people in the rural and semi-urban areas where the branch
network has spread.
Consequences of Nationalization:
The quality of credit assets fell because of liberal credit extension policy.
Political interference has been as additional malady.
Poor appraisal involved during the loan meals conducted for credit disbursals.
The credit facilities extended to the priority sector at concessional rates.
Against this background, the financial sector reforms were initiated to bring
about a paradigm shift in the banking industry, by addressing the factors for its dismal
performance.
In this context, the recommendations made by a high level committee
on financial sector, chaired by M. Narasimham, laid the foundation for the banking
sector reforms. The Narasimham Committee suggested that there should be functional
autonomy, flexibility in operations, dilution of banking strangulations, reduction in
reserve requirements and adequate financial infrastructure in terms of supervision,
audit and technology.
Union Finance Minister P. Chidambaram strongly believes that the country's banking
sector has been one of the driving forces in the process of economic reforms.
Banking system occupies an important place a nation's economy. A banking
institution is indispensable in a modern society. In plays a pivotal role in the
economic development of a country.
Thus, economic development of a country depends upon success of banking industry
and success of banking Industry is determined to a large extent by now well then
needs of its customers have been understood and satisfied.
.
Reserve Bank of
PRIVATE
BANKS
COMMERC
SCHEDUL IAL
E BANKS
BANKS
BAN
KS CO-
OPERATIV
FOREIGN E
BANKS BANKS
INDUSTRI
AL
BANKS
Private sector banking in India received a flip in 1994 when Reserve Bank of India
encouraged setting up of private banks as part of its policy of liberalisation of the
Indian Banking Industry. Housing Development Finance Corporation Limited
(HDFC) was amongst the first to receive an 'in principle' approval from the Reserve
Bank of India (RBI) to set up a bank in the private sector. Private Banks have played
a major role in the development of Indian banking industry. They have made banking
more efficient and customer friendly. In the process they have jolted public sector
banks out of complacency and forced them to become more competitive. India has a
better banking system in place of other developing countries.
CO-OPERATIVE BANKS:
These are those banks that are jointly run by a group of individuals. Each individual
has an equal share in these banks. Its shareholders manage the affairs of the bank.
According to Function:
o COMMERCIAL BANKS:
These are the banks that do banking business to earn profit. These banks make loans
for short to business and in the process create money. Credit creation is the main
function of these banks.
o FOREIGN BANKS:
These are those banks that are incorporated by foreign company. They have set up
their branches in India. These banks have their head offices in foreign countries. Their
principle function is to make credit arrangement or the export and the import of the
INDUSTRIAL BANKS:
Industrial banks are those banks that offer long term and medium term loan to the
industries and also work for their development. These banks help industries in sale of
their shares, debentures and bonds. They give loan to the industries for the purchase
of land and machinery.
AGRICULTURAL BANKS:
Agricultural banks are those banks that give credit to agricultural sector of the
economy.
SAVING BANKS:
The principle function of these banks is to collect small savings across the country
and put them to the productive use. In India department of post office functions a
savings banks.
CENTRAL BANK:
Central Bank is the apex bank of the banking system of the country. It issues currency
notes and acts a banker's bank. Economic stability is the principle function of this
bank. In short, it regulates and controls the banking system of the country. RBI is the
Central Bank of India.
Different countries of the world have different types of banking systems. However,
commercial banking had grown under all these banking systems. To understand the
structure of banking system, let us take up various types of banking systems one by
one. These types are:
An independent unit bank is a corporation that operates one office and that is not
related to other banks through either ownership or control.
This the most popular and important banking system. In branch banking, a bank has a
large network of branches scattered all over the country. Branch banking developed in
England. Subsequently most of the countries of the world adopted the system. In
terms of branches, the State Bank of India has emerged as one of the largest banks in
the world. Under the system branches can operate without keeping large idle cash
reserves. Branch Banking tends to bring
homogeneity in the prevailing Interest Rates. The choice of securities and investments
is larger.
With the growth of large scale business it is no wonder that the trend is almost every
country towards the branch banking i.e. big banks with a network of branches all over
the country. The Bank of America has now more than 500 branches in the state of
California itself.
Under the system there is pooling of resources. Chain banking overcomes certain
limitations of unit banking. But the system suffers from certain limitations of its own.
There may be a lack of co-ordination, proper control etc. The system is inflexible.
It is similar to Chain Banking, the difference being that under Group Banking two or
more banks are brought under the control of the same management through a Holding
Company. Both the systems aim at gaining the advantages of large scale operations.
The banks are able to pool their resources in case of emergency or when large amount
of cash is required to meet the loan requirements of the customer.
Under Correspondent banking, small banks serving local communities hold deposits
with joint banks serving in big cities. This kind of banking is prevalent in U.S.A. The
correspondent banks perform two important services of outstation cheque clearing
and loan participation for the respondent banks while they benefit for the deposit
funds of respondent banks.
PRIMARY FUNCTIONS:
1) Accepting of Deposits: A bank accepts deposits from the public. People can
deposit their cash balances in either of the following accounts to their convenience:-
Fixed or Time Deposit Account: Cash is deposited in this account for a fixed period.
The depositor gets receipts for the amount deposited. It is called Fixed Deposit
Receipt. The receipt indicates the name of the depositor, amount of deposit, rate of
interest and the period of deposit. This receipt is not transferable. If the depositor
stands in need of the amount before the expiry of fixed period, he can withdraw the
same after paying the discount to the bank.
i) Savings Account: This type of deposit suits to those who just want to keep
their small savings in a bank and might need to withdraw them occasionally. Banks
provide a certain rate of interest on the minimum balance kept by the depositor during
the month.
ii) Current Account: This type of account is kept by the businessman who are
required to withdraw money every new and then. Banks do not pay any interest on
this account. Any sum or any number of withdrawals can be presented by such an
account holder.
2) Advancing of Loans: The bank advances money in any one of the following
ways.
ii) Money at Call: It is the money lent for a very short period varying from 1 to 14
days. Such advances are usually made to other banks and financial institutions only.
Money at call ensures liquidity. In the Interbank market it enables bank to make
adjustment according to their liquidity requirements.
iii) Loans: Loans are granted by the banks on securities which can be easily
disposed of in the market. When the bank has satisfied itself regarding the soundness
of the party, a loan is advanced.
iv) Cash Credit: The Debtor is allowed to withdraw a certain amount on a given
security. The debtor withdraws the amount within this limit, interest is charged by the
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A Comparative Study of Nationalized and Private Bank Product Nabeel Shaikh
3) Credit Creation: One of the main functions of banks these days is to create
credit. Banks create credit by giving more loans than their cash reserves. Banks are
able to create credit because the demand deposits i.e. a claim against the bank is
accepted by the public in settlement of their debts. In this process the bank creates
money. For this reason Prof. Sayers has called bank the manufactures of money.
SECONDARY FUNCTIONS:
Besides the above primary functions, banks also perform many secondary functions
such as agency functions, general utility and social functions.
A) Agency Function:
Banks act as agents to their customers in different ways:-
ii) Purchase and Sale of Securities: The modern commercial banks also
undertake the purchase and sale of various securities like shares, stocks, bonds units
and debentures etc. On behalf of the customers, banks do not give any advice
regarding the suitability or otherwise of a security but simply perform the functions of
a broker.
iii) Trustee and Executor: Banks also acts as trustees and executors of the
property of their customers on their advice. Sometimes banks also undertake income
tax services on behalf of the customers.
vi) Billion Trading : In many countries, the commercial banks trade is billions
like gold and silver. In Oct 1997, 8 banks including SBI, IOB, Canara Bank and
Allahabad Bank have been allowed import of gold which has been put under open
general licensed category.
vii) Purchase and Sale of Foreign Exchange: Banks buy and sell foreign
exchange, promoting international trade. This function is mainly discharged by
foreign Exchange Banks.
viii) Letter of References: Banks also give information about economic position
of their customers to domestic and foreign traders and vice versa
In addition to agency services, banks render many more utility services to the
public. These services are :-
i)Locker Facilities : Banks provide locker facilities to their customers. People can
keep their valuables or important documents in these lockers. Their annual rent is
very nominal
ii) Issuing letters of credit : Bankers in a way by issuing letters of credit certify the
credit worthiness of the customers. Letters of credit are very popular in foreign trade.
iii) Acting as Underwriters : Banks also underwrite the securities issued by the
Government and Corporate bodies for a commission. The name of bank as an
underwriter encouraged investors to have faith in the security.
v) Issuing of gift cheques: Certain banks issue gift cheques of various denominations,
e.g. Some Indian banks issue gift cheques if the denominations of Rs. 21, 31, 51 and
101 etc. They are generally issued free of charge.
vi) Dealing in Foreign Exchange: Major branches of commercial banks also transact
business of foreign exchange. Commercial banks are the main authorized dealers of
foreign exchange in India.
vii) Merchant banking Services: Commercial banks also render merchant banking
services to the customers. They help in availing loans from non-banking financial
institutions.
PB BANK
HSBC BANK
ABN AMRO
DEUTSCHE BANK
This was observed by the then prime minister Indira Gandhi in 1969. She thought that
these banks were not working for development of nation. So she thought of taking
over banks into government undertaking.
Branches
64980
8262
Branches
Source: RBI
Sector
Source: RBI
Deposit
988099
4665
amount in crores
Source: RBI
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A Comparative Study of Nationalized and Private Bank Product Nabeel Shaikh
Credit
342012
3399
amount in crores
Source: RBI
Major Frauds:
Hindustan Photo Films Rs. 395 crore
Mangalore Chemicals and Fertilizers - Rs. 165 crore
JK Synthetics Rs. 87 crore
Harshad Mehta Rs.812 crore
Hyderabad Allwyn Rs. 85 crore
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A Comparative Study of Nationalized and Private Bank Product Nabeel Shaikh
In early 80s, the Banking Sector in India was dominated by the public sector banks
which were characterized by
High Intermediation Costs.
Over-staffing and Over-branching.
Huge portfolio of Non-Performing Loans
Poor Customer Services
Undercapitalized
Poorly Managed / Narrow Product Range
Undue Interference in Lending, Loan Recovery & Personnel
Objective of Privatization:
Foster competition,
Ensuring greater capital investment,
Competitiveness and Modernisation,
Increases in Employment
Improved quality of products and services to the consumers
Reduction in the fiscal burden.
Increase in the efficiency levels
Privatization Benefits:
There was a great increase in the no. of bank branches after privatization from 8262
to 45,898.
Branches in rural/semi-urban sectors increases from 2% to 40% after privatization.
Credit to agriculture increases from Rs.162 crore to Rs.4,46,496 crore.
More job opportunities raise after privatization which leads to increase in staff from
2,20,000 to 9,65,720.
Private sector bank loans growth is faster as compared to public sector banks.
There was a great increase in the efficiency of the private banks as the control over
bank employees increases.
Private sector banks provide many additional services to its customers.
Retail Banking and Trade finance operations are conducted at the branch level while
the wholesale banking operations, which cover treasury operations, are at the hand
office or a designated branch.
3. Treasury Operations:
Buying and selling of bullion. Foreign exchange
Acquiring, holding, underwriting and dealing in shares, debentures, etc.
Purchasing and selling of bonds and securities on behalf of constituents.
The banks can also act as an agent of the Government or local authority. They insure,
guarantee, underwrite, participate in managing and carrying out issue of shares,
debentures, etc.
1) Credit Card: Credit Card is postpaid or pay later card that draws from a
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A Comparative Study of Nationalized and Private Bank Product Nabeel Shaikh
credit line-money made available by the card issuer (bank) and gives one a
grace period to pay. If the amount is not paid full by the end of the period, one
is charged interest.
A credit card is nothing but a very small card containing a means of identification,
such as a signature and a small photo. It authorizes the holder to change goods or
services to his account, on which he is billed. The bank receives the bills from the
merchants and pays on behalf of the card holder. Credit cards have found wide spread
acceptance in the metros and big cities. Credit cards are joining popularity for online
payments. The major players in the Credit Card market are the foreign banks and
some big public sector banks like SBI and Bank of Baroda. India at present has about
3 million credit cards in circulation.
2) Debit Cards: Debit Card is a prepaid or pay now card with some stored
value. Debit Cards quickly debit or subtract money from ones savings account, or if
one were taking out cash. Every time a person uses the card, the merchant who in turn
can get the money transferred to his account from the bank of the buyers, by debiting
an exact amount of purchase from the card. To get a debit card along with a Personal
Identification Number (PIN). When A CUSTOMER makes a purchase, he enters this
number on the shops PIN pad. When the card is swiped through the electronic
terminal, it dials the acquiring bank system either Master Card or Visa that validates
the PIN and finds out from the issuing bank whether to accept or decline the
transaction. The customer never overspread because the amount spent is debited
immediately from the customers account. So, for the debit card to work, one must
already have the money in the account to cover the transaction. There is no grace
period for a debit card purchase.
The major limitation of Debit Card is that currently only some 3000-4000 shops
country wide accepts it.
4) E-Cheaques: The e-cheaques consists five primary facts. They are the
consumers, the merchant, consumers bank the merchants bank and the e-mint and
the clearing process. Electronic version of cheaques are issued, received and
processed. A typical electronic cheque transaction takes place in the following
manner:
The customer accesses the merchant server and the merchant server presents its goods
to the customer.
The consumer selects the goods and purchases them by sending an e-cheque to the
merchant. The merchant validates the e-cheque with its bank for payment
authorisation.
The consumers bank updates the consumers account with the withdrawal
information.
The e-chequing is a great boon to big corporate as well as small retailers. Most major
banks accept e-cheques. Thus this system offers secure means of collecting payments,
transferring value and managing cash flows.
their location. But there is much more to mobile banking from just on-lie banking. It
provides a new way to pick up information and interact with the banks to carry out
the relevant banking business. The potential of mobile banking is limitless and is
expected to be a big success. Booking and paying for travel and even tickets is also
expected to be a growth area.. According to this system, customer can access account
details on mobile using the Short Messaging System (SMS) technology where select
data is pushed to the mobile device. The wireless application protocol (WAP)
technology,
which will allow user to surf the net on their mobiles to access anything and
everything. This is a very flexible way of transacting banking business.
3) Stored Value Cards: Prepaid cards for telephone service, transit fares,
highway tolls, laundry service, library fees and school lunches.
5) Cyber Banking: It refers to banking through online services. Banks with web
site Cyber branches allowed customers to check balances, pay bills, transfer funds,
and apply for loans on the Internet.
Banking Services: Banking covers so many services that it is difficult to define it.
However, these basic services have always been recognized as the hallmark of the
genuine banker. These are
The receipt of the customers deposits
The collection of his cheques drawn on other banks
The payment of the customers cheques drawn on himself
There are other various types of banking services like:
Advances Overdraft, Cash Credit, etc.
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A Comparative Study of Nationalized and Private Bank Product Nabeel Shaikh
3) ATMs may be introduced in all the branches of the banks, based upon the
volume of transactions. This shall facilitate non-stop banking.
4) Credit Cards Services, Debit Card Services, which should be provided to the
customers, must a link service with all the banks and branches if possible to
facilitate the customer and the business organizations.
7) All the customers are not homogenous in their needs. Hence need based
schemes may be introduced.
10) Educating the customers will increases better utilisation of banking services.
banks. Internet has emerged as an important medium for delivery of banking products
and services.
The customers can view the accounts; get account statements, transfer funds and
purchase drafts by just punching on few keys. The smart cards i.e., cards with
microprocessor chip have added new dimension to the scenario. IT is increasingly
moving from a back office function to a prime assistant in increasing the value of a
bank over time. IT does so by maximizing banks of pro-active measures such as
strengthening and standardizing banks infrastructure in respect of security,
communication and networking, achieving inter branch connectivity, moving towards
Real Time gross settlement (RTGS) environment the forecasting of liquidity by
building real time databases, use of Magnetic Ink Character Recognition and Imaging
technology for cheque clearing to name a few. Indian banks are going for the retail
banking in a big wa E-Banking: E-banking made its debut in UK and USA 1920s. It
becomes prominently popular during 1960, through electronic funds transfer and
credit cards. The concept of web-based baking came into existence in Europe and
USA in the beginning of 1980.
In India e-banking is of recent origin. The traditional model for growth has been
through branch banking. Only in the early 1990s has there been a start in the non-
branch banking services. The new private sector banks and the foreign banks are
handicapped by the lack of a strong branch network in comparison with the public
sector banks.
ATM
E-Cheques
D-MAT Accounts
Mobile Banking
Telephone Banking
Internet Banking
Benefits of E-banking:
To the Customer:
Anywhere Banking no matter wherever the customer is in the world. Balance enquiry,
request for services, issuing instructions etc., from anywhere in the world is possible.
Anytime Banking Managing funds in real time and most importantly, 24 hours a
day, 7days a week.
Brings down Cost of Banking to the customer over a period a period of time.
On-line purchase of goods and services including online payment for the same.
To the Bank:
Innovative, scheme, addresses competition and present the bank as technology driven
in the banking sector market
Integrated customer data paves way for individualised and customised services.
With automation, service no longer remains a marketing edge with the large banks
only. Small and relatively new banks with limited network of branches become better
placed to compete with the established banks, by integrating IT in their operations.
The technology on one hand serves as a powerful tool for customer servicing, on the
other hand, it itself results in depersonalizing of the banking services. This has an
adverse effect on relationship banking. A decade of computerization can probably
never substitute a simple or a warm handshake.
REVISED RATES
Effective From 04.08.2016
1. Saving Account
2. Current Account
3. Reccuring Deposit Account
4. Tax Saving Deposit
5. Safe Deposit Lockers
SAVINGS ACCOUNTS:
Ace Saving Account
Edge Savings Account
Pro Savings Account
Classic Savings Account
Nova Savings Account
CURRENT ACCOUNT:
ACE CURRENT ACCOUNT
ELITE CURRENT ACCOUNT
PRO CURRENT ACCOUNT
EDGE CURRENT ACCOUNT
NEO CURRENT ACCOUNT
GLOBAL TRADE CURRENT ACCOUNT
TRADER PRO CURRENT ACCOUNT
TRADER CLASSIC CURRENT ACCOUNT
ACE SALARY ACCOUNT
REGULAR TERM DEPOSITS
SENIOR CITIZEN DEPOSITS
A Premium Current Account With Maximum Benefits And Features For Large
Business And Enterprises.
Presenting A Current Account That Offers You Multiple Banking Benefits With
Manageable Balance Requirement. With Pro Account, You Can Access A Range Of
Privileged Banking Services Required For A Growing Business/Enterprise.
An Efficient Package Of Banking Services That Delivers That More Than You Expect
Of Current Account. This Account Suits A Small Or Medium Business/Enterprise
Looking To Maintain A Lower Balance Requirement While Enjoying A Well Defined
Set Of Banking Benefits
Presenting An Account With The Lowest Balance Requirement And Features That
Can Make A Tremendous Difference To Na Newly Set Up Or A Growing Small
Business/Enterprise.
Free Combined Monthly Cash Deposit Limit At Home And Non Home Location
Of Rs. 10 Lacs Per Month Or 8 Times The Previous Months Average Credit
Balance, Whichever Is Higher.
Free Cash Withdrawal At Home Branch Location.
Free Cash Withdrawal At Non Home Branch Location Of Rs. 10,000 Per Day.
Free Local And Anywhere Cheque Collection Facility.
Free Cheque Collection Through Speed Clearing
Free 10 Outward Cheque Return Charges Per Month
ACE SALARY ACCOUNT:
An Account That Packs A Range Of Premium Solutions Designed To Meet The
Requirements Of Professionals Looking For Wealth Benefits Within Salary Account.
Make A Deposit Of As Low As Rs. 10,000/- ( Rs. 25,000/- For New Customer)
Booking Period 7 Days To 10 Years1
Choose To Receive Interest Monthly, Quarterly Or Keep It Invested Till Maturity
Kotak Bank Customers Can Book Term Deposits Online Through Net Banking
Partial/Premature Withdrawal Of Term Deposit Is Permitted.
Nomination Facility Is Available
Liquidity Through Sweep-In Facility
Flexibility To Keep Your Financial Portfolio Diversified
Book A Kotak Senior Citizen Deposits For Safe And Steady Return Whenever You
Want i.e. Monthly Or Quarterly.You Can Also Keep It Invested Till Maturity.
RECURRING DEPOSIT:
A Small Saving Made Every Month Can Bring You One Step Closer To Your
Dreams.Make The Smarter Choice, Save With Kotak Recurring Deposits And
Maximize The Returns From Your Saving.
Make Savings A Habit With Monthly Investment Amounts As Low As Rs. 100/-
Enjoy Easy Payment Options From Your Savings Account
No Tds Applicable On Recurring Deposits
Simple, Safe & Risk Averse Investment Options
A Small Saving Made Every Month Can Bring You One Step Closer To Your
Dreams.Make The Smarter Choice, Save With Kotak Recurring Deposits And
Maximize The Returns From Your Saving.
SWEEP-IN FACILITY:
The Sweep-In Facility Enables You To Link Your Existing Term Deposit To Your
Current Or Saving,Which Can Be Utilized In Case Of An Emergency ,Wherein The
Shortfall In Your Account Is Swept In From Your Linked Term Deposit In The Units
Of Rs.1/- Thereby Giving You The Convenience Of Getting Payments Processed With
Ease Ensuring Complete Peace Of Mind
Benefits of Sweep-in-Facility:
Enjoy Liquidity By Linking Your Term Deposit To Savings Account Or Current
Account
Earn Applicable Interest On The Money Till It Is Swept-In The Account, While The
Remaining Term Deposit Amount Will Fetch You Interest Of Term Deposit At The
Contracted Rate
Only An Exact Amount Required To Make Up For The Deficit In The Account Is
Withdrawn From Your Term Deposit In The Units Of Rs. 1/-, Thereby Giving You
Rizvi Institute of Management Studies and Research
45
A Comparative Study of Nationalized and Private Bank Product Nabeel Shaikh
ACE DEPOSITS:
Ace Deposit Is A Composite Product, Where Monthly Interest Earned On Term
Deposit Is Invested I An Equity Mutual Fund, By Way Of Systematic Investment Plan
Through Standing Instructions Placed On The Savings Accounts.
EDUCATION LOAN:
Education Is The Most Important Investment One Makes In Life. Therefore, Kotak
Mahindra Bank Brings To You Educational Loans, Which Aims To Finance
Meritorious Student Who Choose To Pursue A Higher Education (Professional Or
Technical) In India And Abroad
You Can Avail A Loan Of Up To Rs. 10 Lacs For Education In India And Rs. 20 Lacs
For Education Abroad, Based On Your Income And Repayment Capacity To Fulfil
All Your Financial Needs
Quick Approval With A Kotak Mahindra Bank Education Loan, You Are Not Far
Away From Making Your Dreams Come True
Our Minimal Documentation Requirements Leave You Relaxed
TRACTOR FINANCE:
We Offer Finance For Purchase Of New And Old Tractors For
Agriculture/Commercial Purpose. We Are The Preferred Financier Of Key
Manufacturers
Loans For Purchase Of New Tractor / Old Tractor (Mortgage & Non-Mortgage
Loans)
Balance Transfer
Top-Up Loans
Service At Your Doorstep
Avail Life Insurance Shield Kotak Kisan Suraksha
Quick And Hassle-Free Process
Minimum Documentation
Excellent After Sale Service
Attractive Rates Of Interest
Loan,Educational Loan,Four
Loan,Educational Loan,Four Wheeler Wheeler Loan,Home Improvement
Loan,Home Improvement Loan,Housing Loan,Housing Loan,Loan Against
Loan,Loan Against Deposit,Loan Against Deposit,Loan Against Gold,Loan
Gold,Loan Against Property,Loan Against Against Property,Loan Against
Share,Loan Against Vehicle,Personal Share,Loan Against
Loan,Two Wheeler Loan Vehicle,Personal Loan,Two
Wheeler Loan
Business Monday to Friday-9:00am-4:00pm, Monday to Friday-9:30am-4:00pm,
Hours Saturday-9:00am-1:00pm Saturday-9:30am-12:30pm
Bonds,Equity,Fixed
Bonds,Equity,Fixed Deposit,Flexible
Investment Deposit,Flexible
Deposit,Insurance,Mutual Fund,Stock
Products Deposit,Insurance,Mutual
Invest
Fund,Stock Invest
Card To Card Money
Card To Card Money Transfer,Currency
Transfer,Currency Exchange,Demat
Exchange,Demat Services,Direct Tax
Services,Direct Tax
Payment,Electronic Clearing
Payment,Electronic Clearing
Services Service,Mobile Phone Banking,Multi City
Service,Locker Facility,Mobile
Cheque Facility,Net Banking,Pension
Phone Banking,Multi City Cheque
Disbursement,Personal Tax Assistance &
Facility,Net Banking,Personal Tax
Investment,Portfolio Management,Retail
Assistance & Investment,Portfolio
Chapter XIII: Current Market Condition
State Bank of India has the largest market share with 19.10%
followed by ICICI bank with 10.34% followed by Punjab
National Bank with 5.48% . Next is Bank Of India with 5.20%
followed by HDFC Bank with 2.91% followed by Axis Bank with
2.73%.
Fig 1.4 Major Players of Nationalized banks in terms of net profit (Rs. Cr)
Fig 1.5 Major Players of Private Banks in terms of net profit (Rs. Cr)
Point of sale terminal (POS terminal) is an electronic device used to process card
payments at retail locations. A POS terminal generally does the following:
Reads the information off a customers credit or debit card
Checks whether the funds in a customers bank account are sufficient
Transfers the funds from the customers account to the sellers account (or at least,
accounts for the transfer with the credit card network)
Records the transaction and prints a receipt
The banking scenario has changed drastically. The changes which have taken
place in the last ten years are more than the changes took place in last fifty years
because of the invention of new and creative products institutionalisation,
liberalisation, globalization, technology and automation in the banking industry.
Indian banking system and products has several outstanding achievements to its
credit, the most striking of which is its reach. Indian banks are now spread out into
the remote corners of our country. In terms of the number of branches, Indias
banking system is one of the largest in the world. According to the Banker 2012,
India has 20 banks within the worlds top 1000 out of which only 6 are within the
top 500 banks.
Today banking sector is marked by high customer expectations and technological
innovations. Technology is playing a crucial role in the day to day functioning of
the banks. These banks that have harnessed and leveraged technology best have a
strategic advantage. To face competition, it is necessary for banks to absorb the
technology and upgrade their services.
In todays context banks products are following the strategy of relationship
banking than mass banking which is need of the hour. The customer services
are playing a very significant role in banking business. In India, major events
leading to deregulation, liberalisation and privatisation have unleashed forces of
competition, making the banks run for their business, not only to create the
customer, but more difficult to run for their business, not only to create the
customer, but more difficult to retain the customer. Prompt and efficient customer
service, thus, has become very significant. Relationship banking is the new
paradigm for survival and success, embracing a share of customer approach to
growth by identifying, protecting and expanding customer relationship.