CHAPTER 1

1. Introduction to CRM in Indian Banking 2. Customer Service Management 3. Definition

INTRODUCTION to Customer Relationship Management in

Indian Banking Industry

Customer Relationship Management (CRM) in the Indian banking system is fundamental to building a customer-centric organization. CRM systems link customer data into a single and logical customer repository. CRM in banking is a key element that allows a bank to develop its customer base and sales capacity. The goal of CRM is to manage all aspects of customer interactions in a manner that enables banks to maximize profitability from every customer. Increasing competition, deregulation, and the internet have all contributed to the increase in customer power. Customers, faced with an increasing array of banking products and services, are expecting more from banks in terms of customized offerings, attractive returns, ease of access, and transparency in dealings. Retaining customers is a major concern for banking institutions which underscores the importance of CRM. Banks can turn customer relationship into a key competitive advantage through strategic development across a broad spectrum.

Customer Service management

Increasing competition (whether for-profit or nonprofit) is forcing businesses to pay much more attention to satisfying customers, including by providing strong customer service. It may help the reader to notice the role of customer service in the overall context of product or service development and management. Customer relationship management (CRM) is a widely-implemented strategy for managing a companys interactions with customers, clients and sales prospects. It involves using technology to organize, automate, and synchronize business processes principally sales activities, but also those for marketing, customer service, and technical support. The overall goals are to find, attract, and win new clients, nurture and retain those the company already has, entice former clients back into the fold, and reduce the costs of marketing and client service. Customer relationship management describes a company-wide business strategy including customer-interface departments as well as other departments. Measuring and valuing customer relationships is critical to implementing this strategy.

DEFINATION
Customer Relationship Management (CRM) refers to the methodologies and tools that help businesses manage customer relationships in an organized way.

Customer Relationships
Definition: The ways in which your company communicates and deals with existing customers

Relationship Banking

What Does Relationship Banking Mean? A strategy used by banks to enhance their profitability. They accomplish this by cross-selling financial products and services to strengthen their relationships with customers and increase customer loyalty. Relationship banking involves offering customers a broad array of financial products and services that go beyond simple checking and savings accounts. In addition to these two basic products, relationship-banking products may include certificates of deposit, safe deposit boxes, insurance, investments, credit cards, loans and business services (e.g., credit card processing). They may also include specialized financial products designed for specific demographics, such as students, seniors or the wealthy.

CHAPTER 2 - Project Design

1. Benefits of CRM 2. Challenges
o o o o o

2.1 Complexity 2.2 Poor usability 2.3 Fragmentation 2.4 Business reputation 2.5 Security concerns

3. Types/variations
o o o o o o o o o o

3.1 Sales force automation 3.2 Marketing 3.3 Customer service and support 3.4 Appointment 3.5 Analytics 3.6 Integrated/Collaborative 3.7 Small business 3.8 Social media 3.9 Non-profit and membership-based 3.10 Custom CRM

4. Strategy 5. Implementation 5.1 Implementation issues

o o o o

5.2 Adoption issues 5.3 Statistics 5.4 Increasing usage and adoption rates 5.5 Help menus

6. Development 6.1 Clarity 6.2 Test users 7. Privacy and data security system 8. Related Trends
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1. Benefits of CRM
A CRM system may be chosen because it is thought to provide the following advantages: 1.Quality and efficiency 2.Decrease in overall costs 3.Decision support 4.Enterprise agility 5.Customer Attention

2. Challenges
Successful development, implementation, use and support of customer relationship management systems can provide a significant advantage to the user, but often, there are obstacles that obstruct the user from using the system to its full potential. Instances of a CRM attempting to contain a large, complex group of data can become cumbersome and difficult to understand for an ill-trained user. Additionally, an interface that is difficult to navigate or understand can hinder the CRMs effectiveness, causing users to pick and choose which areas of the system to be used, while others may be pushed aside. This fragmented implementation can cause inherent challenges, as only certain parts are used and the system is not fully functional. The increased use of customer relationship management software has also led to an industry-wide shift in evaluating the role of the developer in designing and maintaining its software. Companies are urged to consider the overall impact of a viable CRM software suite and the potential for good or harm in its use.

2.1. Complexity
Tools and workflows can be complex, especially for large businesses. Previously these tools were generally limited to simple CRM solutions which focused on monitoring and recording interactions and communications. Software solutions then expanded to embrace deal tracking, territories, opportunities, and the sales pipeline itself. Next came the advent of tools for other client-interface business functions, as described below. These tools have been, and still are, offered as on-premises software that companies purchase and run on their own IT infrastructure.

2.2. Poor usability

One of the largest challenges that customer relationship management systems face is poor usability. With a difficult interface for a user to navigate, implementation can be fragmented or not entirely complete. The importance of usability in a system has developed over timeCustomers are likely not as patient to work through malfunctions or gaps in user safety,and there is an expectation that the usability of systems should be somewhat intuitive: it helps make the machine an extension of the way I think not how it wants me to think. An intuitive design can prove most effective in developing the content and layout of a customer relationship management system.

2.3. Fragmentation
Often, poor usability can lead to implementations that are fragmented isolated initiatives by individual departments to address their own needs. Systems that start disunited usually stay that way: siloed thinking and decision processes frequently lead to separate and incompatible systems, and dysfunctional processes. A fragmented implementation can negate any financial benefit associated with a customer relationship management system, as companies choose not to use all the
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associated features factored when justifying the investment. Instead, it is important that support for the CRM system is companywide.The challenge of fragmented implementations may be mitigated with improvements in late-generation CRM systems.

2.4. Business reputation

Building and maintaining a strong business reputation has become increasingly challenging. The outcome of internal fragmentation that is observed and commented upon by customers is now visible to the rest of the world in the era of the social customer; in the past, only employees or partners were aware of it. Addressing the fragmentation requires a shift in philosophy and mindset in an organization so that everyone considers the impact to the customer of policy, decisions and actions. Human response at all levels of the organization can affect the customer experience for good or ill. Even one unhappy customer can deliver a body blow to a business. Some developments and shifts have made companies more conscious of the life-cycle of a customer relationship management system.Companies now consider the possibility of brand loyalty and persistence of its users to purchase updates, upgrades and future editions of software. Additionally, CRM systems face the challenge of producing viable financial profits, with a 2002 study suggesting that less than half of CRM projects are expected to provide a significant return on investment.Poor usability and low usage rates lead many companies to indicate that it was difficult to justify investment in the software without the potential for more tangible gains.

2.5. Security concerns

A large challenge faced by developers and users is found in striking a balance between ease of use in the CRM interface and suitable and acceptable security measures and features. Corporations investing in CRM software do so expecting a relative ease of use while also requiring that customer and other sensitive data remain secure. This balance can be difficult, as many believe that improvements in security come at the expense of system usability. Research and study show the importance of designing and developing technology that balances a positive user interface with security features that meet industry and corporate standards. A 2002 study shows, however, that security and usability can coexist harmoniously. In many ways, a secure CRM system can become more usable. Researchers have argued that, in most cases, security breaches are the result of usererror (such as unintentionally downloading and executing a computer virus). In these events, the computer system acted as it should in identifying a file and then, following the users orders to execute the file, exposed the computer and network to a harmful virus. Researchers argue that a more usable system creates less confusion and lessens the amount of potentially harmful errors, in turn creating a more secure and stable CRM system.

3. Types/variations 3.1. Sales force automation

Sales force automation (SFA) involves using software to streamline all phases of the sales process, minimizing the time that sales representatives need to spend on each phase. This allows a business to use fewer sales representatives to manage their clients. At the heart of SFA is a contact management system for tracking and recording every stage in the sales process for each prospective client, from initial contact to final disposition. Many SFA applications also include insights into opportunities, territories, sales forecasts and workflow automation, quote generation, and product knowledge. Modules for Web 2.0 e-commerce and pricing are new, emerging interests in SFA.

3.2. Marketing
CRM systems for marketing help the enterprise identify and target potential clients and generate leads for the sales team. A key marketing capability is tracking and measuring multichannel campaigns, including email, search, social media, telephone and direct mail. Metrics monitored include clicks, responses, leads, deals, and revenue. Alternatively, Prospect Relationship Management (PRM) solutions offer to track customer behaviour and nurture them from first contact to sale, often cutting out the active sales process altogether. In a web-focused marketing CRM solution, organizations create and track specific web activities that help develop the client relationship. These activities may include such activities as free downloads, online video content, and online web presentations

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3.3. Customer service and support

Recognizing that service is an important factor in attracting and retaining customers, organizations are increasingly turning to technology to help them improve their clients experience while aiming to increase efficiency and minimize costs. Even so, a 2009 study revealed that only 39% of corporate executives believe their employees have the right tools and authority to solve client problems.

3.4. Appointment
Creating and scheduling appointments with customers is a central activity of most customer oriented businesses. Sales, customer support, and service personnel regularly spend a portion of their time getting in touch with customers and prospects through a variety of means to agree on a time and place for meeting for a sales conversation or to deliver customer service. Appointment CRM is a relatively new CRM platform category in which an automated system is used to offer a suite of suitable appointment times to a customer via e-mail or through a web site. An automated process is used to schedule and confirm the appointment, and place it on the appropriate person's calendar. Appointment CRM systems can be an origination point for a sales lead and are generally integrated with sales and marketing CRM systems to capture and store the interaction.

3.5. Analytics
Relevant analytics capabilities are often interwoven into applications for sales, marketing, and service. These features can be complemented and augmented with links to separate, purpose-built applications for analytics and business intelligence. Sales analytics let companies monitor and understand client actions and preferences, through sales forecasting and data quality. Marketing applications generally come with predictive analytics to improve segmentation and targeting, and features for measuring the effectiveness of online,
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offline, and search marketing campaigns. Web analytics have evolved significantly from their starting point of merely tracking mouse clicks on Web sites. By evaluating buy signals, marketers can see which prospects are most likely to transact and also identify those who are bogged down in a sales process and need assistance. Marketing and finance personnel also use analytics to assess the value of multi-faceted programs as a whole. These types of analytics are increasing in popularity as companies demand greater visibility into the performance of call centers and other service and support channels, in order to correct problems before they affect satisfaction levels. Support-focused applications typically include dashboards similar to those for sales, plus capabilities to measure and analyze response times, service quality, agent performance, and the frequency of various issues.

3.6. Integrated/Collaborative
Departments within enterprises especially large enterprises tend to function with little collaboration. More recently, the development and adoption of these tools and services have fostered greater fluidity and cooperation among sales, service, and marketing. This finds expression in the concept of collaborative systems that use technology to build bridges between departments. For example, feedback from a technical support center can enlighten marketers about specific services and product features clients are asking for. Reps, in their turn, want to be able to pursue these opportunities without the burden of re-entering records and contact data into a separate SFA system.

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3.7. Small business

For small business, basic client service can be accomplished by a contact manager system: an integrated solution that lets organizations and individuals efficiently track and record interactions, including emails, documents, jobs, faxes, scheduling, and more. These tools usually focus on accounts rather than on individual contacts. They also generally include opportunity insight for tracking sales pipelines plus added functionality for marketing and service. As with larger enterprises, small businesses are finding value in online solutions, especially for mobile and telecommuting workers.

3.8. Social media

Social media sites like Twitter, LinkedIn and Facebook are amplifying the voice of people in the marketplace and are having profound and far-reaching effects on the ways in which people buy. Customers can now research companies online and then ask for recommendations through social media channels, making their buying decision without contacting the company. People also use social media to share opinions and experiences on companies, products and services. As social media is not as widely moderated or censored as mainstream media, individuals can say anything they want about a company or brand, positive or negative. Increasingly, companies are looking to gain access to these conversations and take part in the dialogue. More than a few systems are now integrating to social networking sites. Social media promoters cite a number of business advantages, such as using online communities as a source of high-quality leads and a vehicle for crowd sourcing solutions to client-support problems. Some analysts take the view that business-tobusiness marketers should proceed cautiously when weaving social media into their
13

business processes. These observers recommend careful market research to determine if and where the phenomenon can provide measurable benefits for client interactions, sales and support.It is statedthat people feel their interactions are peer-to-peer between them and their contacts, and resent company involvement, sometimes responding with negatives about that company.

3.9. Non-profit and membership-based

Systems for non-profit and membership-based organizations help track constituents and their involvement in the organization. Capabilities typically include tracking the following: fund-raising, demographics, membership levels, membership directories, volunteering and communications with individuals. Many include tools for identifying potential donors based on previous donations and participation. In light of the growth of social networking tools, there may be some overlap between social/community driven tools and non-profit/membership tools.

3.10. Custom CRM

Custom CRM software is developed specifically for one client. The advantage of Custom CRM software is that it will have all required functionality, exactly as a client needs it to be. With Custom CRM software, modifications will not be needed. Prewritten software sometimes has missing functionality, causing companies to use multiple software systems.

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4. Strategy
For larger-scale enterprises, a complete and detailed plan is required to obtain the funding, resources, and company-wide support that can make the initiative of choosing and implementing a system successfully. Benefits must be defined, risks assessed, and cost quantified in three general areas:
y

Processes: Though these systems have many technological components, business processes lie at its core. It can be seen as a more client-centric way of doing business, enabled by technology that consolidates and intelligently distributes pertinent information about clients, sales, marketing effectiveness, responsiveness, and market trends. Therefore, a company must analyze its business workflows and processes before choosing a technology platform; some will likely need re-engineering to better serve the overall goal of winning and satisfying clients. Moreover, planners need to determine the types of client information that are most relevant, and how best to employ them.

People: For an initiative to be effective, an organization must convince its staff that the new technology and workflows will benefit employees as well as clients. Senior executives need to be strong and visible advocates who can clearly state and support the case for change. Collaboration, teamwork, and two-way communication should be encouraged across hierarchical boundaries, especially with respect to process improvement.

Technology: In evaluating technology, key factors include alignment with the companys business process strategy and goals, including the ability to deliver the right data to the right employees and sufficient ease of adoption and use. Platform selection is best undertaken by a carefully chosen group of executives who understand the business processes to be automated as well as the software

15

issues. Depending upon the size of the company and the breadth of data, choosing an application can take anywhere from a few weeks to a year or more.

5. Implementation

5.1. Implementation issues

Increases in revenue, higher rates of client satisfaction, and significant savings in operating costs are some of the benefits to an enterprise. Proponents emphasize that technology should be implemented only in the context of careful strategic and operational planning.Implementations almost invariably fall short when one or more facets of this prescription are ignored:
y

Poor planning: Initiatives can easily fail when efforts are limited to choosing and deploying software, without an accompanying rationale, context, and support for the workforce.In other instances, enterprises simply automate flawed clientfacing processes rather than redesign them according to best practices. Poor integration: For many companies, integrations are piecemeal initiatives that address a glaring need: improving a particular client-facing process or two or automating a favored sales or client support channel.Such point solutions offer little or no integration or alignment with a companys overall strategy. They offer a less than complete client view and often lead to unsatisfactory user experiences. Toward a solution: overcoming siloed thinking. Experts advise organizations to recognize the immense value of integrating their client-facing operations. In this view, internally-focused, department-centric views should be discarded in favor of reorienting processes toward information-sharing across marketing, sales, and service. For example, sales representatives need to know about current issues and relevant marketing promotions before attempting to cross-sell to a specific client. Marketing staff should be able to leverage client information from sales
16

and service to better target campaigns and offers. And support agents require quick and complete access to a clients sales and service history.

5.2. Adoption issues

Historically, the landscape is littered with instances of low adoption rates. Many of the challenges listed above offer a glimpse into some of the obstacles that corporations implementing a CRM suite face; in many cases time, resources and staffing do not allow for the troubleshooting necessary to tackle an issue and the system is shelved or sidestepped instead. Why is it so difficult sometimes to get employees up to date on rapidly developing new technology? Essentially, your employees need to understand how the system works, as well as understand the clients and their needs. No doubt this process is time consuming, but it is well worth the time and effort, as you will be better able to understand and meet the needs of your clients. CRM training needs to cover two types of information: relational knowledge and technological knowledge.

5.3. Statistics
In 2003, a Gartner report estimated that more than $1 billion had been spent on software that was not being used. More recent research indicates that the problem, while perhaps less severe, is a long way from being solved. According to CSO Insights, less than 40 percent of 1,275 participating companies had end-user adoption rates above 90 percent. Additionally, many corporations only use CRM systems on a partial or fragmented basis, thus missing opportunities for effective marketing and efficiency. In a 2007 survey from the U.K., four-fifths of senior executives reported that their biggest challenge is getting their staff to use the systems they had installed. Further, 43 percent of respondents said they use less than half the functionality of their existing system; 72 percent indicated they would trade functionality for ease of use; 51 percent cited data synchronization as a major issue; and 67 percent said that finding time to

17

evaluate systems was a major problem. With expenditures expected to exceed $11 billion in 2010,enterprises need to address and overcome persistent adoption challenges. The amount of time needed for the development and implementation of a customer relationship management system can prove costly to the implementation as well. Research indicates that implementation timelines that are greater than 90 days in length run an increased risk in the CRM system failing to yield successful results.

5.4. Increasing usage and adoption rates

Specialists offer these recommendations for boosting adoptions rates and coaxing users to blend these tools into their daily workflow: Additionally, researchers found the following themes were common in systems that users evaluated favorably. These positive evaluations led to the increased use and more thorough implementation of the CRM system. Further recommendations include
y

Breadcrumb Trail: This offers the user a path, usually at the top of a web or CRM page, to return to the starting point of navigation. This can prove useful for users who might find themselves lost or unsure how they got to the current screen in the CRM.

Readily available search engine boxes: Research shows that users are quick to seek immediate results through the use of a search engine box. A CRM that uses a search box will keep assistance and immediate results quickly within the reach of a user. Help Option Menu: An outlet for quick assistance or frequently asked questions can provide users with a lifeline that makes the customer relationship management software easier to use. Researchers suggest making this resource a large component of the CRM during the development stage.

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A larger theme is found in that the responsiveness, intuitive design and overall usability of a system can influence the users opinions and preferences of systems. Researchers noted a strong correlation between the design and layout of a user interface and the perceived level of trust from the user. The researchers found that users felt more comfortable on a system evaluated as usable and applied that comfort and trust into increased use and adoption.

5.5. Help menus

One of the largest issues surrounding the implementation and adoption of a CRM comes in the perceived lack of technical and user support in using the system. Individual users and large corporations find themselves equally stymied by a system that is not easily understood. Technical support in the form of a qualified and comprehensive help menu can provide significant improvement in implementation when providing focused, context-specific information. Data show that CRM users are oftentimes unwilling to consult a help menu if it is not easily accessible and immediate in providing assistance. A 1998 case study found that users would consult the help menu for an average of two or three screens, abandoning the assistance if desired results werent found by that time. Researchers believe that help menus can provide assistance to users through introducing additional screenshots and other visual and interactive aids. A 2004 case study concluded that the proper use of screenshots can significantly support a users developing a mental model of the program and help in identifying and locating window elements and objects. This research concluded that screen shots allowed users to learn more, make fewer mistakes, and learn in a shorter time frame, which can certainly assist in increasing the time frame for full implementation of a CRM system with limited technical or human support.

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Experts have identified five characteristics to make a help menu effective:

context-specific the help menu contains only the information relevant to the topic that is being discussed or sought useful in conjunction with being context-specific, the help menu must be comprehensive in including all of the information that the user seeks obvious to invoke the user must have no trouble in locating the help menu or how to gain access to its contents non-intrusive the help menu must not interfere with the users primary path of work and must maintain a distance that allows for its use only when requested easily available the information of the help menu must be accessible with little or few steps required

6. Development
Thoughtful and thorough development can avoid many of the challenges and obstacles faced in using and implementing a customer relationship management system. With shifts in competition and the increasing reliance by corporations to use a CRM system, development of software has become more important than ever. Technical communicators can play a significant role in developing software that is usable and easy to navigate.

6.1. Clarity
One of the largest issues in developing a usable customer relationship management system comes in the form of clear and concise presentation. Developers are urged to consider the importance of creating software that is easy to understand and without unnecessary confusion, thus allowing a user to navigate the system with ease and confidence.
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Strong writing skills can prove extremely beneficial for software development and creation. A 1998 case study showed that software engineering majors who successfully completed a technical writing course created capstone experience projects that were more mindful of end user design than the projects completed by their peers.The case study yielded significant results:
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Students who completed the technical writing course submitted capstone projects that contained more vivid and explicit detail in writing than their peers who did not complete the course. Researchers note that the students appeared to weigh multiple implications on the potential user, and explained their decisions more thoroughly than their peers. Those participating in the writing course sought out test users more frequently to add a perspective outside their own as developer. Students appeared sensitive of the users ability to understand the developed software. The faculty member overseeing the capstone submissions felt that students who did not enroll in the technical writing class were at a significant disadvantage when compared to their peers who did register for the course.

6.2. Test users

In many circumstances, test users play a significant role in developing software. These users offer software developers an outside perspective of the project, oftentimes helping developers gain insight into potential areas of trouble that might have been overlooked or passed over because of familiarity with the system. Test users can also provide feedback from a targeted audience: a software development team creating a customer relationship management software system for higher education can have a user with a similar profile explore the technology, offering opportunities to cater the further development of the system. Test users help developers discover which areas of the software perform well, and which areas require further attention. A 2007 study suggests some important steps are needed in creating a quality and effective test environment for software development. In this case study, researchers
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observed a Danish software company in the midst of new creating new software with usability in mind. The study found these four observations most appropriate:
y

The developers must make a conscious effort and commitment to the test user. Researchers note that the company had dedicated specific research space and staff focused exclusively on usability. Usability efforts must carry equal concern in the eyes of developers as other technology-related concerns in the creation stage. The study found that test users became discouraged when items flagged as needing attention were marked as lower priority by the software developers. Developers must make themselves available to test users and colleagues alike throughout the creation process of a software system.

7. Privacy and data security system

One of the primary functions of these tools is to collect information about clients, thus a company must consider the desire for privacy and data security, as well as the legislative and cultural norms. Some clients prefer assurances that their data will not be shared with third parties without their prior consent and that safeguards are in place to prevent illegal access by third parties.

8. Related trends
Many CRM vendors offer Web-based tools (cloud computing) and software as a service (SaaS), which are accessed via a secure Internet connection and displayed in a Web browser. These applications are sold as subscriptions, with customers not needing to invest in purchasing and maintaining IT hardware, and subscription fees are a fraction of the cost of purchasing software outright. The era of the "social customer"refers to the use of social media (Twitter, Facebook, LinkedIn, Yelp, customer reviews in Amazon etc.) by customers in ways that allow other potential customers to

22

glimpse real world experience of current customers with the seller's products and services. This shift increases the power of customers to make purchase decisions that are informed by other parties sometimes outside of the control of the seller or seller's network.

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24

CHAPTER 3 Profile Of Vijaya Bank 1. Inception 2. Overview 3. Management 4. Financial Statement

25

VJAYA BANK

Inception
Vijaya Bank, was founded on 23rd October 1931 by late Shri A.B.Shetty and other enterprising farmers in Mangalore, Karnataka. The objective of the founders was essentially to promote banking habit, thrift and enterpreneurship among the farming community of Dakshina Kannada district in Karnataka State. The bank became a scheduled bank in 1958. Vijaya Bank steadily grew into a large All India bank, with nine smaller banks merging with it during the 1963-68. The credit for this merger as well as growth goes to late Shri M.Sunder Ram Shetty, who was then the Chief Executive of the bank. The bank was nationalised on 15th April 1980. The bank has built a network of 1200 branches,49 Extention Counters and 551 ATMs as at 30.06.2011, that span all 28 states and 4 union territories in the country. Each branch provides effective and efficient services and significantly contributes to the growth of the individual, and the nation.

26

Overview
1. Overview Vijaya Bank has the highest number of branches in its home state Karnataka. In line with the prevailing trends, the bank has been giving greater thrust towards technological upgradation of its operations.The bank has network of 1200 branches, 49 Extention Counters and 551 ATMs, 789 centers, covering 100 % of Bank's business. Realising your constantly evolving and diverse needs, the bank has diversified too. Entering several new areas such as credit card, merchant banking, hire purchase and leasing, and electronic remittance services. 1277 Branches / offices are under RTGS / NEFT. Vijaya Bank is one among the few banks in the country to take up principal membership of VISA International and MasterCard International. The driving force behind Vijaya Bank's every initiative has been its 11415 strong dedicated workforce. At H.O. there is seperate Official Language Division which ensures implementation of the Official Language Policy of the Government of India. The Bank has created Official Language Sections in its Regional Offices. The Official Language Implementation Committees of the Branches/Offices of the Bank are regularly meeting once in 3 months to review the progress achieved and to plan for effective implementation of the Language in all aspects of banking.

27

Management
Today, living up to the ideals of the visionaries of the bank, the management includes dedicated professionals, who bring with them a considerable amount of expertise and experience in the banking industry. Organisation structure
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The Bank has a three tier Organisation structure. Head Office, Regional Office and Branches. The Head office hosts various functional departments that are instrumental in policy formulations and monitoring of performances of the regions and branches. The bank's 20 Regional Offices exercise immediate supervision and control over the branches under their jurisdiction.

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Financial Statement

REVIEWED FINANCIAL RESULTS FOR THE QUARTER ENDED 30TH JUNE, 2011 Rs in Lakhs Year ended Sl. Particulars No. Quarter ended (Reviewed) 30.06.2011 01 Interest earned [(a)+(b)+(c)+(d)] (a) Interest/discount on advances/bills (b) Income from investments (c) Interest on balances with Reserve Bank of India and other inter bank funds (d) Others 02 03 04 05 Other Income TOTAL INCOME (1+2) Interest Expended Operating Expenses (i) + (ii) (i) Employee costs (ii) Other operating expenses 06 TOTAL EXPENDITURE (4+5) (Excluding provisions and contingencies) 767 16844 195340 136194 26595 16948 9647 162789 1128 17073 152026 90463 30137 20608 9529 120600 3989 53318 637724 389729 143328 101044 42284 533057 178496 133078 44633 18 30.06.2010 134953 98165 35659 1 31.03.2011 584406 419190 161101 126 (Audited)

29

07

OPERATING PROFIT (3 6) (Profit before provisions and contingencies)

32551

31426

104667

08

Provisions (other than tax) and Contingencies

23129

6078

36285

09 10

Exceptional items Profit/(Loss) from Ordinary Activities before tax (7-8-9)

9422

25348

68382

11

Tax Expenses[(i)+(ii)] (i) Current Tax (ii) Deferred Tax

2200 2200 0 7222

8000 197 7803 17348

16000 7505 8495 52382

12

Net Profit/(Loss) from Ordinary Activities after tax (10-11)

13 14 15

Extraordinary Items (Net of Tax Expense) Net Profit/(Loss) for the period (12-13) Paid up equity share capital (Face value of each share-` 10/-)

7222 47267

17348 43352

52382 47267

16

Reserves excluding Revaluation Reserves (As per Balance Sheet of previous accounting year)

285050

222995

285050

17

Analytical Ratios (i) Percentage of shares held by Government of India (ii) Capital Adequacy Ratio (%) Basel I Basel II (iii) Earnings per share (EPS) (Not annualized) 12.27 13.04 13.85 14.74 12.59 13.88 57.69 53.87 57.69

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(a) Basic and Diluted EPS before Extraordinary Items (Net of Tax Expenses for the period, for the year to date and for the previous year) (b) Basic and Diluted EPS after Extraordinary Items for the period, for the year to date and for the previous year (iv) NPA Ratios a) Amount of Gross Non Performing Assets b) Amount of Net Non Performing Assets c) Percentage of Gross Non Performing Assets d) Percentage of Net Non Performing Assets (v) Return on Assets (Annualised) (%) 18 Public share holding - Number of shares - Percentage of share holding 19 Promoters and Promoter Group Shareholding a) Pledged / Encumbered Number of Shares Percentage of shares (as a percentage of total shareholding of promoter and promoter group)

1.53

4.00

9.89

1.53

4.00

9.89

144912

97279

125919

83269

56087

74116

2.83

2.32

2.56

1.65

1.35

1.52

0.34

0.96

0.72

200000000 42.31

200000000 46.13

200000000 42.31

Nil Nil

Nil Nil

Nil Nil

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Percentage of shares (as a percentage of total share capital of the company) b) Non-encumbered Number of Shares (in million) Percentage of shares (as a percentage of total shareholding of promoter and promoter group) Percentage of shares (as a percentage of total share capital of the company)

Nil

Nil

Nil

272.66 100.00

233.52 100.00

272.66 100.00

57.69

53.87

57.69

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(Rs. in Crore) SEGMENT-WISE RESULTS, ASSETS AND LIABILITIES FOR THE QUARTER ENDED 30.06.2011 Sl. No. Particulars Quarter Ended 30.06.2011 (Reviewed) Quarter Ended 30.06.2010 (Reviewed) a) Segment Revenue # i) Treasury Operations ii) Whole Sale Banking iii) Retail Banking iv) Other Banking Operations Total b) Segment Result i) Treasury Operations ii) Whole Sale Banking iii) Retail Banking iv) Other Banking Operations Total c) d) e) f) g) h) i) j) Unallocated Expenses Operating Profit Provisions & Contingencies Income Tax Extraordinary Profit Net Profit Other Information Segment Assets i) Treasury Operations
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Year Ended 31.03.2011 (Audited)

520.82 863.60 467.18 101.80

431.47 563.83 417.82 107.14

1799.60 2435.02 1756.87 385.75

1953.40

1520.26

6377.24

89.40 148.24 80.18 17.47

91.65 119.77 88.76 22.75

308.39 417.28 301.06 66.10

335.28 9.77 325.51 231.29 22.00 72.22 -

322.93 8.67 314.26 60.78 80.00 173.48 -

1092.83 46.16 1046.67 362.85 160.00 523.82 -

28748.23

24490.83

27737.03

ii) Whole Sale Banking iii) Retail Banking iv) Other Banking Operations v) Unallocated Assets Total Assets k) Segment Liabilities i) Treasury Operations ii) Whole Sale Banking iii) Retail Banking iv) Other Banking Operations v) Unallocated Liabilities Total Liabilities

36227.85 18610.79 472.65

27616.18 17608.48 367.40

34088.43 18151.22 529.84

1237.01 85296.53

939.58 71022.47

1180.40 81686.92

27500.58 34655.58 17803.10 452.14

23301.08 26274.60 16753.07 349.54

26484.10 32548.60 17331.30 505.91

4885.14 85296.53

4344.18 71022.47

4817.01 81686.92

34

CHAPTER 4 Customer Relations With Respect To Vijaya Bank 1. Contact Us 2.Public Grievances 3.Citizen Charter 4.Ombudsman 5.Fair Practice Codes 6.Model Policy/Codes 7.The Right To Information 8.SSI Charter 9.USA Patriot Act

35

CUSTOMER RELATIONS

1. Contact Us
y y y y Resident Indians Non Resident Indians Credit Card / Debit Card Customer Care. Internet Banking - VNET Banking.

CONTACT DETAILS FOR : Resident Indians E-Mail To : customerrelationcell@vijayabank.co.in you can contact us at any of our branches too. Non Resident Indians
For any clarifications regarding Non Resident Deposits :E-Mail To : nricustomercell@vijayabank.co.in OR please write to / contact Vijaya Bank, International Banking Division, Head Office, 41/2, Trinity Circle M.G.Road, Bangalore 560001.Tel : 91 80 25584066 Ext 349 or 348 Fax : 91 80 25584142

36

Credit Card / Debit Card Customer Care For any of your queries / information or complaints / Hot Listing of Debit / Credit Cards : Please contact Debit / Credit Card 24*7 Customer care centre at HO, Bangalore at Contact Toll Free No ( BSNL) 1800 425 9992 . OR Tel.No. 080 -4113 3500 .You may contact by e-mail debitccc@vijayabank. OR debitcard@vijayabank.co.in OR ccd@vijayabank.co.in Internet Banking - VNET Banking You may reach us / contact us for information or complaints regarding Internet Banking - Vnet Banking by Toll Free Telephone Number 1800 425 4066 or by email vnetbanking@vijayabank.co.in

2. Public Grievances redressal and submission of suggestions / observations

GRIEVANCES REDRESSAL MECHANISM For attending to customers grievances an exclusive Customer Grievance Redressal Cell attached to Planning & Development Department at Head Office has been set up to monitor the redressal of complaints received from the customers. The Department is headed by a General Manager who is the Nodal Officer for Public Grievances. We have Customer Grievance Redressal Sections headed by Regional Managers at all our 20 Regions. Customer Meet is conducted by the Bank on 15th of every month (next working day, if it happens to be Saturday or Holiday).The customers of the Bank can meet the branch head, executives of the bank without any prior appointment and discuss issues relating to their accounts/banking transactions etc. Customers of the Bank may meet the Branch Manager in case of any complaint for immediate redressal. If the complaint is not redressed to the satisfaction of the
37

customer, the matter may be taken up with the Regional Manager concerned. If the customer still feels unsatisfied with the responses received, he can address his complaint to the Banks Nodal Officer designated to deal with customer complaints/grievances giving full details of the case. After exhausting all the above machinery/channels, if the customer is not satisfied, he may write to the Chairman & Managing Director of the Bank and even after this, not satisfied he is free to take recourse to the following: a. Directorate of Public Grievances, Government of India , Cabinet Secretariat Sansad Marg, NEW DELHI -110 001. b. The Banking Ombudsman located in State capitals under the Banking Ombudsman Scheme- 2006. c. The District Consumer Forums under Consumer Protection Act. 1985. PROCEDURE FOR FILING COMPLAINT The complaint in writing shall be duly signed by the complainant and shall be, as far as possible, in the form specified in Annexure A or as near as thereto as circumstances admit stating, inter alia, clearly; (i) The name and address of the complainant. (ii) The name and address of the branch or office of the Bank against which complaint is made. (iii) The facts giving rise to complaint

FORM OF COMPLAINT (format) If you need specific information or clarifications on any of our services, please get in touch with us at Head Office or directly with the Vijaya Bank branch located near you.

38

We will do our best to make your banking more convenient. For Grievances Redressal A single point platform to submit your views and route your grievances E-Mail To : grievancesredressalcell@vijayabank.co.in you can contact us at any of our branches too.

3. Citizen's Charter
y Common Practices Followed by Our Branches

1. Display business hours. 2. Render courteous services. 3. Attend to all customers present in the banking hall at the close of business hours. 4. Provide separate 'Enquiry' or 'May I Help You ' counter at large branches. 5. Offer nomination facility to all deposit accounts (i.e. account opened in individual capacity) and all safe deposit locker hirers (i.e. individual hirers) 6. Display interest rates for various deposit schemes from time to time. 7. Notify change in interest rates on advances. 8. Provide details of various deposit schemes / services of the Bank. 9. Issue Demand drafts , Pay Orders, etc., 10. Display Time-norms for various banking transactions. 11. Pay interest for delayed credit of outstation cheques, as advised by Reserve Bank of India (RBI) from time to time. 12. 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. 13. Provide complaints / suggestion box in the branch premises. 14. Display address of Regional / Zonal and Central offices as well as Nodal officer dealing with customer grievances / Complaints Common Areas of Customer Banker Relationship

39

Savings Bank Account

Issue of Duplicate Demand Draft Without Receipt of Non Payment Advice Time Frame for Issue of Duplicate Draft Cash Order (ie., Pay Order, Banker's Cheque)

Current Account

Term Deposit Accounts

Payment of Balance in Accounts of the Deceased Customers to Survivors / Claimants Standing Instructions Collection of Government Dues Exchange of Soiled/Slightly Mutilated Currency Notes At Public Sector Banks Interest on Deposits Service Charges Time Norms for Various Banking Transactions Redressal Of Complaints Collection Service

Safe Deposit Lockers

Articles in Safe Custody Nomination Pension Payments (applicable to Public Sector Banks only) Remittance Service

4. Banking Ombudsman Scheme 2006

THE BANKING OMBUDSMAN SCHEME, 2006 The Scheme is introduced with the object of enabling resolution of complaints relating to certain services rendered by banks and to facilitate the satisfaction or settlement of such complaints.
40

5. Fair Practice Codes

y y Bankers' Fair Practice Code for Credit Card Operations - December 2005. Fair Practice Code for Lenders.

6. Model Policy /Codes

Model Policy on Bank Deposits Policy on Collection of Dues & Repossession of Security Corporate Governance - Model Code of Conduct Code of Bank's Commitments to Customers Policy on Collection of Cheques Model Compensation Policy Code of Bank's Commitment to Micro & Small Enterprises - May 2008

7. SSI Charter
With a view to increasing the credit flow to SSI, the Bank has come out with SSI Charter'. The charter brings out the corporate goals of the Bank for increasing the credit flow to SSI. The Bank is offering an interest rate band width of PLR-2% to PLR+2% for SSI loans, based on the quantum of loan, to ensure cheap SSI credit Quantum of loan Loans upto Rs.25,000 Loans above Rs.25,000 and upto Rs.2 lakh Loans above Rs.2 lakh and upto Rs.25 lakh Loans above Rs.25 lakh Interest Rate PLR 2 % PLR 1 % PLR + 1.5 % PLR + 2 %

41

8. USA Patriot Act Certification

The USA Patriot Act requires Foreign Banks that maintain a Correspondent Account in USA to complete a certification. To meet this certificate requirement, Vijaya Bank has prepared a Certificate (USA Patriot Act Certificate) for use by any financial institution that requires such certification from Vijaya Bank. Any clarification on this Certification should be addressed to: - Deputy General Manager International Banking Division Vijaya Bank 41/2, M.G. Road Bangalore 560 001 INDIA E-mail ibd@vijayabank.co.in.

9. A M L Certification
Anti - Money Laundering Questionnaire Certificate Any clarification on this Certification should be addressed to: - Deputy General Manager International Banking Division Vijaya Bank 41/2, M.G. Road Bangalore 560 001 INDIA E-mail ibd@vijayabank.co.in.

42

CHAPTER 5 Services Of Vijaya Bank 1.Deposits 2.Loans and Advances 3.NRI Services 4.Remittance Collection and Facilities 5.Credit Cards 6.Other Services

43

For the services offered the following are the rates:

Activity Account Opening Annual Maintenance Custody Fees Dematerialisation Charges Nil Rs.50.00 per quarter Rs.1.50 per ISIN per month Rs.2.00 per certificate. Minimum Rs.10.00 per request Rematerialisation Market Buy Rs.25.00 per certificate 0.02% of market value with min of Rs.10.00 & max of Rs.250.00 per transaction Market Sell 0.03% of market value with min of Rs.20.00 & max of Rs.500.00 per transaction Off-Market Buy 0.02% of market value with min of Rs.10.00 & max of Rs.250.00 per transaction Off-Market Sell 0.03% of market value with min of Rs.20.00 & max of Rs.500.00 per transaction Late Transaction Pledge/Hypothecation creation Pledge/Hypothecation Confirmation, Closure & Invocation Additional account statement Security Lending & Borrowing Rs. 5.00 per page Rs. 50.00 per transaction Rs.25.00 per transaction + NSDL charges Rs.50.00 per ISIN Rs.25.00 per ISIN

44

Cheque return charges Overdue interest for non/delayed settlement of bills Service Tax

Rs. 25.00 per cheque PLR + 4%

As applicable

Nil balance will be treated as one entry for computing custody charges. No Pledge creation charges if pledge is created in favour of Vijaya Bank Values of securities are computed as per NSDL rates. The rates are subject to change by giving 30 days notice by ordinary post. Clients not having operative account with the Bank/Branch should deposit an advance amount of Rs.1500/- towards charges and maintain the same at all times. Postage/Courier charges to be paid in addition to the above wherever applicable.

45

1. Deposit
1.1. BUSINESS RULES ON SAVINGS BANK ACCOUNTS 1.'Know Your Customer' Compliance 2. Review of Inoperative accounts

3.Minimum Balance

4. Dormant Accounts

5.Passbook / Statement of Account

6.Interest payment / levy of charges

7.Transactions

8. Nomination facility

9.Cheque Book facility 10. AlternateDelivery Channel 11.Restrictions on Withdrawals 12. Customer's Obligations 13. 'Minor's' Accounts 14.Bank's Rights

46

1.2.

V- Gen U TH

Together lets build a bright future for your Child

1. Saving Bank account designed for Children - Age day 1 and above. Students undergoing various courses are also eligible. 2. Account can be opened with minimum initial deposit of Rs.10/- and can continue with Zero balance. 3. Cheque book and withdrawal facility provided for children above twelve years. 4. Add-on Credit Card and ATM Card for children above the age of twelve on authorization from parents. 5. Free transfer to Child's account from parents' account. 6. Internet banking facility provided on request 7. No fee for payment of School fees, Hostel fees, etc. through the account. Free collection of cheques / DDs gifted to the child - upto Rs.25,000/- perannum 8. Offer of Education loan at concession of 0.50% on the prevailing rate,inrecognition of continued 9. relationship.

47

1.3.

V- Gen U

TH

UNNATI

RECURRING

DEPOSIT ACCOUNT Together lets build a bright future for your Child

1. This product is designed to help parents build a sizeable resource to meet the future educational needs of their children. The deposit period ranges from 36 months to 120 months, the monthly instalments being in multiples of Rs.50/2. All children up to and inclusive of the age of 18 can open the account. 3. In respect of children below the age of 12, the account will have to be opened as minor by guardian account. 4. Children who have attained the age of 12 can open the account in their own names. 5. The monthly instalment shall be fixed. 6. The minimum period of deposit is 36 months 7. The maximum period of deposit is 120 months.
48

8. For children maintaining the RD Account for a minimum period of 5 years, a concession of 0.50% on the interest rate for Education Loan is offered. 9. Penalty will be levied as per extant rules for delayed remittances of instalments. 10. Premature closure will be dealt with as per extant rules. 11. Automatic sweep facility (free of charge) from SB Account to RD account will be provided for monthly remittance of instalments. 12. For children maintaining the RD Account for a minimum period of 5 years, a concession of 0.50% on the interest rate for Education Loan is offered.

1.4. V - BALIKA SAVINGS BANK & TERM DEPOSIT ACCOUNT

Government of India has launched the National Scheme for incentives to girls for Secondary Education. Under the scheme the eligible girl student will receive Rs.3000/deposited by the specified authorities alongwith interest accrued therein on compliance of the conditions specified under the Scheme. The main objective of the scheme is to reduce school drop-outs and promote the enrolment of girl child.

49

1.5. V PLATINUM SAVING BANK ACCOUNT

The deposit scheme with add-ons to Savings Bank Customers Vijaya Bank has completed 75 years of banking services & introduces one more Customer friendly deposit product product with effect from 01.11.2006. This scheme essentially aims at providing certain add-ons to the Savings Bank Customers who maintain the certain minimum balances in their accounts. The highlights of the scheme are as follows : 1. Free issue of 100 cheque leaves in a year 2. Free issue of multicity cheque books with 25 leaves at CBS Branches 3. Free DEBIT Card 4. Free CREDIT card (with personal accident death insurance cover of Rs.1.00 lakh) for the first year. 5. Zero commission remittances upto Rs.1.00 lakh per annum in Urban/Metropolitan branches and upto Rs.50000/- per annum in Rural / Semi - urban branches. 6. No charges for standing instructions. 7. Demat account - Account opening free. 8. Immediate credit of outstation cheques up to Rs.25000/- with normal charges. 9. Individuals and HUFs welcome to open their account under this scheme.
50

1.6. TERM DEPOSITS Following Points are included in Term Deposits:

1.V utsav Gold Plus 2.Recurring Deposits 3.VCash Certificate 4.Vijayashree Units 5.Fixed Deposit 6.Balika Deposit 7.Jeevan Nidhi Deposit 8.Capital Gains Account Scheme 9.Vijaya Tax Savings Scheme

51

2. LOANS AND ADVANCES

2.1. Retail lending Schemes
Vijaya Home Loan V Niwas V Mortage Loans V Wheels V Equip V Rent V Cash V Rakshak V shikshak V Swashakti V Professional V Solar V IPO Trade Finance Education Loan Jewel Loan Vijaya Gold Cash Credit Loans To Transfer Operators V Reverse Mortage

52

2.2. Loans Against Securities

Against Govt Of India Relief Bonds Advances Against Nre And Fcnrb Deposits Advances Against Ivp/Kvp/Nsc Advances Against Shares Mortgage Loans: Housing Mortgage Loans Against Immovable Properties Advances Against Gold Ornaments And Jewellery Advances Against Hypothecation Of Machinery Loans To Real Estate Property Developers And Builders Loans To Construction Of Cinema Theatres Production Of Motion Pictures Hypothecation Of Book Debts And Receivables Loans To Educational Institutions Loans For Construction Of Community Convention Meeting And Marriage Halls Loans And Advances For Purchase Of Estates Loans Against Hypothecation Of Vehicles Working Capital Finance To Information Technology Against Pledge Of Goods Or Document Of Title To Goods Hypothecation Of Movable Assets Advances Against Documentary Bill Evidencing Dispatch Of Goods Advances against bills drawn on and accepted by the drawees

2.3. Non Fund Based Facilities

53

Issuance of Bank Guarantee for purchase of machinery or goods on credit

Issuance of Bank Guarantee in Liew of Security Deposit / EMD / Performance Guarantees

Financial guarantee against collateral securities /cash margin

Issuance/establishing BG/LC on behalf of lottery agents/liquor contractors/liquor shops with 100% cash margin

y y

Forward Sales ,Forward Purchase contracts Letter of credit with a minimum cash margin of 25%(inland)

Guarantees/Co-acceptance of usance bills with minimum 25% cash margin

y y

Discounting of Bills co-accepted by other Banks Partly secured /unsecured /clean Guarantee/coacceptances with minimum of 25% cash margin

y y y

Issue of solvency /capability certificates Processing Charges Fair Practice Code on lenders' Liability.

2.4. Advances To Agriculture, MSME and Others

Agricultural Advances / Rate of Interest

54

Micro, Small & Medium Enterprises (MSME) Others Solar Water Heating Systems (involving Interest Subsidy from MNES) Micro Credit Educational Loans Housing Loans Rural Housing Advances To Weaker Sections Advances To SC/ST Produce Marketing Loan Vijaya Kisan Card Vijaya Planters Card Credit Guarantee Fund Scheme Of SIDBI to Micro & Small Enterprises. Soft Loan Assistance for MSE Under NEF Scheme Technology Upgradation Fund Scheme For Micro & Small Enterprises. Golden Jubilee Rural Housing Finance Scheme For Development of Commercial Horticulture Loans To Scavengers

55

Liquidity Finance to Small Enterprises Processing Charges Fair Practice Code on Lenders Liability

2.5. Government Sponsored Schemes

1. Prime Ministers Rozgar Yojna 2. Swarna Jayanti Gram Swarojgar Yojna 3. Scheme For Liberation & Rehabilation Of Scavengers 4. Golden Jubilee Rural Housing Scheme 5. Differential Rate of Interest Scheme

2.6. Special Schemes For Women

1. Assistance To Women In Non Farm Development. 2. Assistance For Marketing Of Non Farm Products Of Rural Women. 3. Processing Charges. 4. Fair Practice Code on Lenders Liability.

56

2.7. Minority Communities

CREDIT FACILITIES TO MINORITY COMMUNITIES Definition of Minority Communities : The following communities have been notified as minority communities by the Government of India, Ministry of Welfare: (a) Sikhs (b) Muslims (c) Christians (d) Zoroastrians (e) Buddhists

3. NRI SERVICES
3.1. Deposits
A- Non Resident External (NRE) Rupee Accounts

Eligibility

y Loans / Overdraft y Period y Tax Benefits y Currency Nominations Opening of accounts y Operations in the Account y Withdrawals y Overdue Deposits

57

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

Eligibility

y Premature Withdrawal y Period y Loans / Overdrafts Currency y Overdue Deposits y Repatriability Operations in the Account y Nomination y NRI Remittance

C- V - FCNR (B) PLUS DEPOSIT ACCOUNT Unique V-FCNR (B) PLUS Deposit introduced by the Bank with immediate effect for the benefit of NRIs and PIOs. The deposit accepted under this scheme offers market driven yield to the depositor, which is presently much higher than the rate of interest otherwise offered under normal NRE or FCNR deposit scheme. The scheme is a combination of normal FCNR (B) scheme and the facility to book forward purchase contract against the maturity value of the deposit. The deposits under this scheme are accepted only in USD with a minimum USD 10,000.00 and in multiples of USD 1,000.00 thereafter.

58

The deposit under this scheme is accepted for a period of one year and one day only. Forward purchase contract against the deposit is booked free of cost. On maturity of the deposit, the maturity proceeds can be credited to NRE/NRO account or renewed for further period or repatriated abroad. *Terms & conditions apply

D- Ordinary Non-Resident (ONR) A/C y y y y y y y y Eligibility Tax Liability Term Nomination Repatriability Loans & Overdrafts Renewal of Term Deposit Operations in the Account Premature Withdrawal

59

3.2. LOANS

A- Housing Loan

Purpose Rate of Interest Eligibility Quantum of Loan Repayment Loan entitlement Security Margin Guarantor Incentives Processing Charges Pre - payment Charges Inspection Charges

60

B- Loans Against Shares, Securities ...

Select branches are authorized to grant overdrafts on the security of Shares/Securities/immovable properties held by Non-Resident Indians in the country. to avail of the loans in India against shares/securities/immovable properties held by Non-resident Indians in India, the NRI has to comply with/accept the following conditions: 1) Shares/securities should be held in the name of the concerned NRI with the general or special permission of the Reserve Bank of India. In the case of loans against security of immovable properties (other than agricultural/plantation property or farmhouse) to persons of Indian origin holding a foreign passport, the properties should have been acquired with the general or specific permission of the Reserve Bank of India. Conditions

2) The loan should be utilised for meeting the borrower's personal requirements and/or for his own business purposes and not for : a) Re-lending or investment in shares/securities/immovable properties, or

b) Investment in agricultural/plantation activities or farmhouse and in real estate business (i.e., dealing in land and other immovable property for commercial purposes) either singly or in association with others.

61

3) The quantum of loan, margin, interest etc., would be in accordance with the guidelines issued by the Reserve Bank of India regarding advances against shares/securities/immovable properties.

3.3 Remittances
A- Forex Remittances y y y y US Dollar Pound Sterling (GBP) Canadian Dollar Singapore Dollar y y y y Japanese Yen Euro Swiss France Australian Dollar

B- Remit 2 India Vijaya Bank and Remit2India join hands to bring you unparalleled service for NRIs to send money back home.
y

Have the comfort of using a service offered by two trusted brands - Vijaya Bank & The Times Group. Multiple ways to receive money in India based on the beneficiaries convenience Round the clock customer support by TimesofMoney Ltd Attractive exchange rates The flexibility to send money anytime, anywhere. No need to visit banks or agents Real-time tracking of your transaction status at Times of Money Website

y y

62

Send money online from 23 countries into India.

3.4. FOREX branches

y y y y y y y y y y y y y y y y y y y y y y y y y y Agra Lucknow Ongole Ahmedabad Jaipur Panipat Bangalore Jamnagar Pune Baroda Jallandhar Surat Calicut Kolkata Tirupur Chennai Kollam Tuticorin Kochi Ludhiana Udaipur Delhi / New Delhi Mangalore Udupi Goa Moradabad

63

y y y y y y y

Varanasi Guntur Mumbai Visakhapatnam Hyderabad Mysore Thruvanathapuram We have over 47 branches that provide specialised foreign exchange services. Get in touch with us at any of these branches and we will be more than glad to help you. daily forex market information regarding the movement of currencies and the levels are sent to forex designated branches for the benefit of export / import customers, particularly small / medium exports / imports clients.

3.5. Helpline for NRIs

y y y Resident Indians Non Resident Indians Card Helpline

If you need more specific information or clarifications on any of our services, please get in touch with us. We will do our best to make your banking more convenient.

64

4. REMITTANCE/ COLLECTION
4.1. Forex Remittances

1.US Dollar 2.Pound Sterling (GBP) 3.Canadian Dollar 4.Singapore Dollar

5.Japanese Yen 6.Euro 7.Swiss France 8.Australian Dollar 9.Remittance in Indian Rupees from GULF Countries

US Dollar Wells Fargo Bank NA 375, Park Avenue, NY 4080 New York N. Y. 1012 Account Number: SWIFT:PNBPUS3NNYC

65

Pound Sterling (GBP) HSBC Bank PLC International Branch P.O. Box 181, 27-32, Poultry, London EC 2P 2BX Account Number - 00265172 Swift - MIDLGB22

Canadian Dollar Bank of Montreal Head Office International Banking Division P.O. Box 6002 Montreal Quebec Canada H3CB1 Account Number - 1047458 Swift - BOFMCAM2 Singapore Dollar The Hongkong and Shanghai Banking Corporation Ltd. HSBC Building Collyer Quay Singapore - 049320 Account Number - 141-281428-001 Swift - HSBCSGSG

66

Japanese Yen Wells Fargo Bank Yomato International Bldg. 8th Floor, 2-1-3 Nihonbashi Horidomecho, Chou - Ku, Tokyo - 103-0012 Japan. SWIFT : PNBPJPJX Account Number - 99816069 Phone : (81-3)-3669-5901 FAX : (81-3)-3669-8488

Euro Standard Chartered Bank (Germany) Gmbh, Franklinstrasse 46-48, 60486 Frankfurt am Main, Germany Tel. +49(0) 69770750-0 Fax.+49(0) 69770750-100 Account Number - 424-018005203 Swift - SCBLDEFX

67

Swiss Franc Credit Suisse First Boston, Uetilber & strasse, 231, 8045, Zurich, Switzerland. Account Number - 0835 - 0241079-53-000 Swift - CRESCHZZ80A Australian Dollars Australia & New Zealand Banking Group Limited, Clearing Services, Level 21 100 Queen Street Melbourne, Victoria Australia, 3000. Account Number - 920553AUD00001 Swift - ANZBAU3M 4.2 Remit2India
Vijaya Bank and Remit2India join hands to bring you unparalleled service for NRIs to send money back home.

1. Have the comfort of using a service offered by trusted brands - Vijaya Bank & The Times Group.

two

2 Multiple ways to receive money in India based on the beneficiaries convenience 3. Round the clock customer support by TimesofMoney Ltd 4. Attractive exchange rates
68

5. The flexibility to send money anytime, anywhere. No need to visit banks or agents 6. Real-time tracking of your transaction status at TimesofMoney Website 7. Safe, speedy, inexpensive & hassle free transactions for peace of mind 8. Send money online from 23 countries into India

4.3. V - REMIT XPRESS

Vijaya Bank now provides on-line remittance facility to NRIs residing in USA to remit money to their or their family members account in India. SEND MONEY TO INDIA 1. Fast & convenient Online money transfer from US to INDIA 2. Efficient, Fast & Secure 3. Send money to any account holder in Vijaya Bank (at any Branch) 4. Send money to beneficiary having accounts with other Banks in India. 5. Send upto US$ 5,000 at a time, with a maximum of US$ 30,000/- per month. 6. Normal fee of US$ 7 per transaction

69

A beneficiary who is having an account with the bank will receive payment on the fourth business day following the initiation of your instructions. For payments through the local clearing or through check there may be an additional delay of one or two days depending on the time it takes for the delivery of funds.

4.4. INLAND REMMITANCES

1. Service Charges on Remittances (Demand 2. Drafts /Mail Transfers / Telegraphic Transfers)

3. Transfer of funds on CBS Platform 4. Exchange on Banker's cheques / Pay orders / Local Drafts 5. Remittance against tender of cash

70

4.5. Electronic Remittance Services

1. NOTICE ON Electronic payment products (RTGS/ NEFT/ NECS) Processing inward transactions 2. ECS (Credit Clearing) 3. ECS (Debit/Rapid) 4. Electronic Funds Transfer : NEFT - National 5. Electronic Funds Transfer 6. Electronic Funds Transfer : RTGS - Real Time Gross Settlement

4.6. Inward/Outward Collection Instruments

1. Bills for collection (Clean / Documentary / Demand & Usance Bills / Supply Bills) 2. Cheques / Interest Warrants / Dividend Warrants / Refund Orders etc., for collection 3. Cheque Collection on CBS Platform (HOC 148/05) 4. Collection of Fixed Deposit Receipts 5. Handling Charges for Bills / Cheques Returned Unpaid 6 . Handling charges on Post Parcel along with the bills 7. Handling Charges for Bills / Cheques Returned Unpaid

71

5. CREDIT CARDS
5.1. Other Features of our Cards
DEBIT CARDS VISA Debit Cards V Insta Debit Cards Useage of Debit Card Online CREDIT CARDS Verified by Visa (VbV) / MasterCard Secure Code FAQ on IVR Transactions for Card Holders / Pre-OTP Other Features of our Credit Cards Charges Revolving Credit Customer Care Centre V Care

5.2 Domestic Cards

A.VISA Classic Credit Card B.Master Classic Credit Card

C.Vijaya Platinum Card

D.VISA Gold Credit Card

72

5.3 Global Cards

A. MasterCard Global Card The eligibility criteria for issue of MasterCard Global Card are as follows : a)Individuals b)For Corporates c)For Add-on cards B. VISA Classic International Card

C. Visa City Specific Cards

D. VISA Doctors Card

73

5.4 Debit Cards

A. VISA International Debit Cards

B. V Insta Debit Card

6. OTHER SERVICES
6.1.Merchant Banking
A. DP Services
Vijaya Bank, a Depository Participant (DP) with National Securities Depository Limited facilitates offers the following depository services.
y y y

Account Opening Dematerialization of securities (shares, Debentures, Mutual funds etc.,) Electronic settlement of trades in stock exchanges connected to NSDL and CDSL Pledge/hypothecation of demat security holdings against bank loan Electronic credit of securities allotted in public issues.

y y

74

y y

Receipt of non-cash corporate benefits like bonus, rights in electronic form. Freezing of accounts whenever required so that debits from the account are not permitted. Nomination facility for demat accounts. Services related to change of address, bank account details etc., Effecting transmission of securities. Other services like holding debt instruments in the demat account, availing stock lending/borrowing facility. NSDL IDeAS facility.

y y y y

B. Online Trading
VIJAYA BANK commences online trading in association with IDBI CAPITAL MARKET SERVICES LTD. The offer comprises of an integrated 3-in 1 account:
y y y

Vijaya Bank Operative Account. Vijaya Bank Demat Account Online trading Account.

The initiative enables customers to trade in the following securities from their convenient locations through Internet.
y y y y

EQUITY F&O MUTUAL FUNDS IPOs. Customers can approach any branch of Vijaya Bank for assistance with regard to

opening of Online Trading account.

75

Features of On-Line Trading (Benefits offered by Bank): Integrated 3-in-1 Account (Demat Account-On Line Trading Account-Bank Account).
y y y y y y y

Trade from anywhere. Increased transparency as there is no manual intervention. Convenient and Paperless. Completely Clients controlled. Hassle free process-as trading account is linked to Demat and Bank account. Easiest option to invest in Stock Markets. Trading on BSE, NSE, F&O NSE (NSE Derivative segment), Mutual Fund and subscription to IPO online.

6.2. Service Charges

COLLECTIONS OF BILLS DEPOSITS REMITTANCES AND CHEQUES OTHER GENERAL MATTERS Exchange on Remittances Ledger Folio Charges DD / Pay orders / local DDs, Bills etc. Issue of DD / Pay orders / Standing Instructions local DDs, etc., against tender of cash Issue of Duplicates / Recording of stop payment instructions Cancellations / Revalidations/ Fresh issue, etc Non-maintenance of monthly average minimum Cash deposit (per day per account) Service Charges for Cheque Collectio Under Speed Electronic Funds Transfer Outstation Cheque Collection

76

balance

Collection (By Collecting Banks from Customers)

Incidental Charges on Inoperative / dormant Accounts Non compliance with rule regarding maximum withdrawals in Savings Bank account Electronic Funds Transfer Cash Withdrawals

Cheque Involving more than two Cities / Centers

Fate Enquiries at the instance of the customer

Closure of the accounts

GENERAL MATTERS

Collection of Fixed Deposit Receipts

Issue of Pass Book / Statement of Accounts / Term Deposit Receipts etc Charges on operational instructions Safe Custody charges

Return of OBC and Local / Outstation Bills

Issuance of Cheque Books

Handling charges on Post Parcel along with the bills

Handling Charges for Cheques Returned Unpaid Handling charges on return of ECS Enquiry on CBS platform, upon written request and after verifying specimen signature

Attestation charges

SAFE DEPOSIT LOCKERS

Certification fee

Rental Rates per annum

SMS Alerts

DEBIT/CREDIT CARDS

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6.3. Government Pensions

VIJAYA BANK MERCHANT BANKING DIVISION H.O., BANGALORE We are one of the agency Banks for payment of Central Government and State Government pensions. We have a network of over 1100 branches spread across 28 states and 4 union territories. We are one of the very few public sector banks in India having all the branches in Core Banking Network. This gives flexibility to the pensioner/s to draw money from any part of the country by keeping the pension account at a place of his choice. We disburse (1.) Central Government pensions and (2.) State Government pensions. Central Government pensions includes pensions to central government servants and employees retired from other departments like Railways, Telecommunication, P&T and Defence Services (both Civilians and Armed Forces), Freedom Fighters, All India Service pensioners, Supreme/High Court Judges, Ex-MPs etc.,. Under State Government pensions, retired employees of different state governments are included.

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6.4. Mobile Banking

REGISTRATION PROCESS @ ATM
y y y y y y y

Customer walks into the Bank's ATM to register V-Mobile Banking Service. Customer inserts/dips ATM card in the ATM. ATM prompts the Customer to enter ATM Card's PIN. Customer selects Mobile Banking Registration option in the ATM Menu. ATM prompts the Customer to enter his/her Mobile number. Customer should enter 10 digit Mobile number and select Confirm button. ATM prompts the Customer to re-confirm the Mobile number Customer reenters the Mobile number and Confirms. ATM prompts the Customer to Select the Account Type options <CURRENT> or <SAVINGS> On validation, the ATMdisplays the message Your Mobile Number Registered successfully and prints the same. If customer details found invalid, then ATM displays Registration Failure. After successful registration, Customer receives SMS (Service SMS) to his/her Mobile from Bank containing Mobile Application URL link for downloading the Mobile Application Software and two passwords 1) Application password. 2) Activation code/mPin. The customer Mobile handset is to be enabled for GPRS, customer downloads the application by clicking the URL link in the SMS message http://mobile.fssnet.co.in/MPAYPORTAL/MobileDownload and downloads the Mobile Banking application to his/her Mobile.
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y y

OR Customer can download the Mobile Banking application related to their mobile hand set (Example: For Nokia Mobile application related to Nokia only ) from the web site of Vijaya Bank ( www.vijayabank.com ) to their PC and there after they have to transfer the application to their mobile hand set through Bluetooth or Data Cable. Steps for using VMobile ApplicatioN

1. Balance Enquiry 2. Mini Statement (maximum amount that can be transferred is Rs.25,000.00 in a day & number of Funds Transfers limited to 3 [Three] in a Day) Within the Bank a) Mobile to Mobile b) Mobile to Account 3. Fund Transfer: Other Bank NEFT [beneficiary registration] NEFT Payment

4. My Services : a) b)
y

Bill Payment Airline Ticketing Booking & Payment

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Enter mPin, start place, destination, date of journey, select class, no. of passengers.

y y y y y i. ii. iii. iv.

ii. iii. iv. v. vi.

Select Airline from the list. Select the appropriate flight. Enter the booking persons details and passengers details. Confirm by entering mPin. Get transaction successful message on screen and inbox.

Payment Only Select Airline. Enter mPin, Booking Reference No.(BRN). Confirm the details by entering mPin. Ticket confirmation will be sent as an SMS to the users mobile with a copy to registered E-Mail.

c)
i.

Movie Ticketing
Enter mPin, city, language, no. of tickets and date. Select theatre from the list provided. Select movie and timings. Successful message will be received on screen and inbox.

ii. iii. v.

iv. Confirm the booking by entering your mPin.

d)
i.

Shopping (Next Phase)

Enter mPin, amount and merchants mnemonic name. Confirm by entering the mPin. ii.

iii. Receive the successful transaction message on screen and inbox, after the merchant approves the transaction.

e)
i. ii.

Mobile Recharge
Enter mPin and mobile number (to be charged). Select the amount with which you want to recharge the prepaid mobile number.

iii. Confirm by entering the mPin.

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iv. Get transaction successful message on screen and inbox.

f)
i. ii. iii.

Corporate Fund Transfer (Next Phase)

Register the distributor by searching the corporate, then sub-corporate and then Make payment by selecting the appropriate registered distributor, enter amount, Set per day and transaction amount limit for any registered distributor in Standing

confirm it by entering the mPin. invoice number and confirm the transaction. Instruction option.

g)
i.

Temple Donation (Next Phase)

Select temple for which you want to make donation. Select temple donation scheme. Enter the amount and confirm the transaction.

ii. iii.

iv. Get successful transaction message on screen and inbox.

h)
i.

Fees Payment (Next Phase)

Register the institute by selecting the institute from the list. To make payment, enter roll no, confirm the details. Select the category (tuition or hostel) and payment options. Get transaction successful message on screen and inbox. ii. iii. v.

iv. Enter appropriate information and confirm the payment.

i)
i.

Other Services
Stop Cheque : Enter mPin and cheque number. Get successful message if cheque is not already paid.

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ii. iii. iv.

Cheque Status : Enter mPin and cheque number. Get the successful message on status of the cheque. Block Card : Hot list the debit card by entering the mPin. Locator : a.ATM Locator Locate banks ATM using pin code or the location. Locator Locate banks branch using pin code or the location. b.Branch

5. Request to Bank i. ii. iii. v. Request for Cheque Book Enter mPin and your request will be registered. Request for A/C statement Enter mPin and request for a/c statement will be Request for Fixed deposit Enter mPin and request will be logged. Request for Credit Card Enter mPin and successful request will be logged.

logged. iv. Request for Loan Enter mPin and request will be logged. vi. Request for New Account Enter mPin and request will be logged.

6. My Setup i.Enable or Disable Transaction ii. iii. iv. v. mPAY Service Number GPRS URL Save Messages in Application in Memory Communication Mode vi. vii. ix. viii. Email id Configuration WAP Option (Next Phase) Change Application Password : Change Login Password

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7. Change mPin : If you want to change your mPin, select this option. Then enter your old mPin, after that enter your new mPin, then re-enter your new mPin, Click Yes for Allow application V-Mobile to send text message?. 8. Refer a Friend: Enter mPin, friend name, mobile number and email id of the

friend whom you want to enjoy the benefits of Mobile banking of the bank. Feedback/ complaints : Customer can give the feedback and also register complaint. Inbox : Inbox includes last five responses received. It may be Balance enquiry, mini statement, fund transfer done or fund transfer received, bill payment, ticket booking, shopping, mobile re-charge, corporate fund transfer, temple donation, fees payment, cheque status, stop cheque request, locating any ATM or branch, hot listing the card, any request to the bank through V-Mobile. the

9.

10.

6.5. CUSTOMER SERVICES

INFORMATION ON VARIOUS CUSTOMER SERVICES RENDERED
y

We exchange soiled notes and mutilated notes. we accept / exchange coins of all denominations. If a Bank note tendered at the Bank is found to be counterfeit, we will issue an acknowledgement to the tenderer after stamping the note.

Please refer to our Cheque Collection Policy for the applicable time-frames for collection of local and outstation cheques.

For satisfactory accounts, we offer immediate credit of outstation cheque upto Rs.15,000/(Please refer Cheque Collection Policy)
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6.6. FINANCIAL INCLUSION

Bank has taken up Financial Inclusion in a multi - pronged approach under which the bank has initiated varios steps. The bank has covered the districts of MANDYA, UDUPI & DAKISHA KANNADA Districts and appointed 106 BC's covering 105 villages serviced by 36 Branches.

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CONCLUSION
Successful Customer Relationship Management navigation is becoming increasingly important in today?s competitive business world. Customer expectations are always increasing, and business services must increase along with these expectations. CRM is the method through which businesses can connect with their customers and therefore serve them better. Businesses with successful CRM strategy and applications will notice a large increase in sales, customer satisfaction, and simply the overall success of the business. A Long-term vision for the Indian Banking System to transform itself from the domestic to global level may, at present sound far- fetched.Taking the banking industry to international excellence will require a combination of new technologies, better and quicker processing of credit appraisal, product diversification, internal control and human resource. Ultimately the challenge is to build a safe and sound banking system for a vibrant economy. Co. operative banking is no exemption in this regard. The task is aduous but a beginning has to be made. Therefore, Co.Operative banking should emerge stonger in line with international standards while at the same time meeting in national goals. If this information motivates people concerned to take some important measures in order to improve it the authority will be amply rewarded.

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BIBLIOGRAPHY
Primary Data
Visited to Vijaya Bank. Sector-10 Vashi Navi Mumbai.

Secondary Data
1. Books a) Customer Relationship Management. Modern Trends & Perspective -By Shamugasundaram S. b) CRM At the Speed Of Light -By Paul Greenberg

2. Internet Websites Search Engines:www.google.com www.readbooksonline.com www.vijayabank.com

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