CHAPTER 1 1.

1 COMPANY PROFILE Indian Overseas Bank (IOB; established 1937) is a major bank based in Chennai (Madras), with 2018 domestic branches and six branches overseas. Indian Overseas Bank has an ISO certified inhouse Information Technology department, which has developed the software that 2018 branches use to provide online banking to customers; the bank has achieved 100% networking status as well as 100% CBS status of branches with a total number of 2018 CBS branchs and Extension Counters. IOB also has a network of about 771 ATMs all over India and IOB's International VISA Debit Card is accepted at all ATMs belonging to the Cash Tree and NFS networks. IOB offers internet Banking (E-See Banking) and is one of the banks that the Govt. of India has approved for online payment of taxes.

1.1.1 HISTORY OF INDIAN OVERSEAS BANK

1937: Shri.M.Ct.M. Chidambaram Chettyar establishes the Indian Overseas Bank (IOB) to encourage overseas banking and foreign exchange operations. IOB started up simultaneously at three branches, one each in Karaikudi, Madras (Chennai) and Rangoon (Yangon). It then quickly opened a branch in Penang and another in Singapore. The bank served the Nattukottai Chettiars, who were a mercantile class that at the time had spread from Chettinad in Tamil Nadu state to Ceylon (Sri Lanka), Burma (Myanmar), Malaya, Singapore, Java, Sumatra, and Saigon. As a result, from the beginning IOB specialized in foreign exchange and overseas banking (see below). y 1960s: The banking sector in India was consolidating by the merger of weak private sector banks with the stronger ones; IOB absorbed five banks, including Kulitali Bank (est. 1933). y 1969: The Government of India nationalized IOB. At one point, probably before nationalization, IOB had twenty of its eighty branches located overseas. After

nationalization it, like all the nationalized banks, turned inward, emphasizing the opening of branches in rural India. y y 1988-89: IOB acquired Bank of Tamil Nadu in a rescue. 2000: IOB engaged in an initial public offering (IPO) that brought the government's share in the bank's equity down to 75%. y 2009: IOB took over Shree Suvarna Sahakari Bank, which was founded in 1969 and had its head office in Pune. In 2001 it acquired the Mumbai-based Adarsha Janata Sahakari Bank, which gave it a branch in Mumbai. Shree Suvarna Sahakari Bank has been in administration since 2006. It has nine branches in Pune, two in Mumbai and one in Shirpur. The total employee strength is estimated to be little over 100.

1.1.2 OBJECTIVES OF IOB

IOB's overall objective is to meet the need for independent evaluation in all fields of foreign policy. Specifically, the aim is to fit the results of the evaluations into the knowledge cycle of the Ministry of Foreign Affairs. The reports of the evaluations are used as feedback to improve both policies and their implementation. With the results of previous exercises at their disposal, policymakers can prepare new interventions more purposefully and more effectively.

2.2.3 QUALITY AND INDEPENDENCE

Parliament has always shown great interest in IOB's independent reports. On the basis of the reports sent to the Lower House, the minister gives a policy response. The Permanent Committee on Foreign Affairs then discusses the report and the policy response. The evaluation results are public and are used, for instance, by universities in their teaching.

2.2.4 APPROACH AND METHODOLOGY

IOB has a staff of specialists and its own budget. Given the growing complexity of policies and interventions, a multidisciplinary approach is required. This calls for evaluation expertise as well as specialist expertise in a large number of fields. For this reason IOB uses external consultants and specialists, whenever possible from the countries with which the Netherlands cooperates. This fits in with the policy of flexibilization and professionalization which IOB aspires to. For internal quality control, IOB uses reference groups of involved parties and external experts.

In order to compare evaluations, relevant studies are 'clustered' by policy theme. This makes it possible to draw main conclusions for policy making on the basis of a series of studies. This generates an important synergy effect, so that greater attention can be paid to the spearheads of policy: poverty reduction within development cooperation, "good governance" (i.e. the functioning of public authorities and civil society organizations in the countries concerned), issues of international order and the promotion of Dutch interests abroad.

2.2.5 MAJOR SHIFTS

Since IOB was set up in 1977, major shifts have taken place in its approach, areas of attention and responsibilities. In the early years, IOB's activities consisted mainly of separate project evaluations. Around 1985, the focus shifted to the sector and theme levels, and now its work is conducted on the basis of clustered evaluations.

In 1996, there was a review of Dutch foreign policy and the Ministry of Foreign Affairs was reorganized. As part of the review, the name of the department was changed from

Operations Review Unit (IOV) to IOB, and its sphere of activities was extended to cover all aspects of the Dutch government's foreign policy, in which development cooperation plays an important role.

2.2.6 INTERNATIONAL EXPANSION

1937-38: As mentioned above, IOB was international from its inception with branches in Rangoon, Penang, and Singapore.

1941: IOB opened a branch in Malaya that presumably closed almost immediately because of the war.

y y y y y y

1946: IOB opened a branch in Ceylon. 1947: IOB opened a branch in Bangkok and re-opened others. 1948: United Commercial Bank (see below) opened a branch in Malaya. 1949: IOB opened a branch in Bangkok. 1963: The Burmese government nationalized IOBs branch in Rangoon. 1973: IOB, Indian Bank and United Commercial Bank established United Asian Bank Berhad in Malaysia. (Indian Bank had been operating in Malaysia since 1941 and United Commercial Bank Limited had been operating there since 1948.) The banks set up United Asian to comply with the Banking Law in Malaysia, which prohibited foreign government banks from operating in the country. Also, IOB and six Indian private banks established Bharat Overseas Bank as a Chennai-based private bank to take over IOB's Bangkok branch

y y y

1977: IOB opened a branch in Seoul. 1979: IOB opened a Foreign Currency Banking Unit in Colombo, Sri Lanka. 1992: Bank of Commerce (BOC), a Malaysian bank, acquired United Asian Bank (UAB).

2007: IOB took over Bharat Overseas Bank.

2010: Malaysia awarded a commercial banking license to a locally incorporated bank to be jointly owned by Bank of Baroda, Indian Overseas Bank and Andhra Bank. The new bank, India BIA Bank (Malaysia), will reside in Kuala Lumpur, which has a large population of Indians. Andhra Bank will hold a 25% stake in the joint-venture, Bank of Baroda will own 40% and IOB the remaining 35%

2.1 INDUSTRIAL PROFILE The Indian banking system is financially stable and resilient to the shocks that may arise due to higher non-performing assets (NPAs) and the global economic crisis, according to a stress test done by the Reserve Bank of India (RBI). Significantly, the RBI has the tenth largest gold reserves in the world after spending US$ 6.7 billion towards the purchase of 200 metric tonnes of gold from the International Monetary Fund (IMF) in November 2009. The purchase has increased the country's share of gold holdings in its foreign exchange reserves from approximately 4 per cent to about 6 per cent. In the annual international ranking conducted by UK-based Brand Finance Plc, 20 Indian banks have been included in the Brand Finance Global Banking 500. In fact, the State Bank of India (SBI) has become the first Indian bank to be ranked among the Top 50 banks in the world, capturing the 36th rank, as per the Brand Finance study. The brand value of SBI increased from US$ 1.5 billion in 2009 to US$ 4.6 billion in 2010. ICICI Bank also made it to the Top 100 list with a brand value of US$ 2.2 billion. The total brand value of the 20 Indian banks featured in the list stood at US$ 13 billion. Meanwhile, loan disbursement from scheduled commercial banks which included regional rural banks as well posted a growth of 16.04 per cent by March 12, 2010, on a year-onyear basis, as per the latest data released by RBI. The RBI had earlier predicted that the credit growth during 2009-10 would be around 16 per cent. Following the financial crisis, new deposits have gravitated towards public sector banks. According to RBI's 'Quarterly Statistics on Deposits and Credit of Scheduled Commercial Banks: September 2009', nationalised banks, as a group, accounted for 50.5 per cent of the aggregate deposits, while State Bank of India (SBI) and its associates accounted for 23.8 per cent. The share of other scheduled commercial banks, foreign banks and regional rural banks in aggregate deposits were 17.8 per cent, 5.6 per cent and 3.0 per cent, respectively.

With respect to gross bank credit also, nationalised banks hold the highest share of 50.5 per cent in the total bank credit, with SBI and its associates at 23.7 per cent and other scheduled commercial banks at 17.8 per cent. Foreign banks and regional rural banks had a share of 5.5 per cent and 2.5 per cent respectively in the total bank credit. The report also found that scheduled commercial banks served 34,709 banked centres. Of these centres, 28,095 were single office centres and 64 centres had 100 or more bank offices. The confidence of non-resident Indians (NRIs) in the Indian economy is reviving again. The Indian banking system is financially stable and resilient to the shocks that may arise due to higher non-performing assets (NPAs) and the global economic crisis, according to a stress test done by the Reserve Bank of India (RBI). Significantly, the RBI has the tenth largest gold reserves in the world after spending US$ 6.7 billion towards the purchase of 200 metric tonnes of gold from the International Monetary Fund (IMF) in November 2009. The purchase has increased the country's share of gold holdings in its foreign exchange reserves from approximately 4 per cent to about 6 per cent. In the annual international ranking conducted by UK-based Brand Finance Plc, 20 Indian banks have been included in the Brand Finance Global Banking 500. In fact, the State Bank of India (SBI) has become the first Indian bank to be ranked among the Top 50 banks in the world, capturing the 36th rank, as per the Brand Finance study. The brand value of SBI increased from US$ 1.5 billion in 2009 to US$ 4.6 billion in 2010. ICICI Bank also made it to the Top 100 list with a brand value of US$ 2.2 billion. The total brand value of the 20 Indian banks featured in the list stood at US$ 13 billion. Meanwhile, loan disbursement from scheduled commercial banks which included regional rural banks as well posted a growth of 16.04 per cent by March 12, 2010, on a year-onyear basis, as per the latest data released by RBI. The RBI had earlier predicted that the credit growth during 2009-10 would be around 16 per cent. Following the financial crisis, new deposits have gravitated towards public sector banks. According to RBI's 'Quarterly Statistics on Deposits and Credit of Scheduled Commercial Banks: September 2009', nationalised banks, as a group, accounted for 50.5 per cent of the aggregate deposits, while State Bank of India (SBI) and its associates accounted for 23.8 per

cent. The share of other scheduled commercial banks, foreign banks and regional rural banks in aggregate deposits were 17.8 per cent, 5.6 per cent and 3.0 per cent, respectively. With respect to gross bank credit also, nationalised banks hold the highest share of 50.5 per cent in the total bank credit, with SBI and its associates at 23.7 per cent and other scheduled commercial banks at 17.8 per cent. Foreign banks and regional rural banks had a share of 5.5 per cent and 2.5 per cent respectively in the total bank credit. The report also found that scheduled commercial banks served 34,709 banked centres. Of these centres, 28,095 were single office centres and 64 centres had 100 or more bank officesNRI fund inflows increased since April 2009 and touched US$ 47.8 billion on March 2010, as per the RBI's June 2010 bulletin. Most of this has come through Foreign Currency Non-resident (FCNR) accounts and Non-resident External Rupee Accounts.

2.1.1 MAJOR DEVELOPMENTS

The Monetary Authority of Singapore (MAS) has provided qualified full banking (QFB) privileges to ICICI Bank for its branch operations in Singapore. Currently, only SBI had QFB privileges in country. The Indian operations of Standard Chartered reported a profit of above US$ 1 billion for the first time. The bank posted a profit before tax (PAT) of US$ 1.06 billion in the calendar year 2009, as compared to US$ 891 million in 2008. Punjab National Bank (PNB) plans to expand its international operations by foraying into Indonesia and South Africa. The bank is also planning to increase its share in the international business operations to 7 per cent in the next three years.

2.1.2 BANKING IN INDIA

Structure of the organised banking sector in India. Number of banks are in brackets.

Currently, India has 96 scheduled commercial banks (SCBs) - 27 public sector banks (that is with the Government of India holding a stake), 31 private banks (these do not have government stake; they may be publicly listed and traded on stock exchanges) and 38 foreign banks. They have a combined network of over 53,000 branches and 49,000 ATMs. According to a report by ICRA Limited, a rating agency, the public sector banks hold over 75 percent of total assets of the banking industry, with the private and foreign banks holding 18.2% and 6.5% respectively.

2.1.3 HISTORY Banking in India originated in the last decades of the 18th century. The first banks were The General Bank of India which started in 1786, and the Bank of Hindustan, both of which are now defunct. The oldest bank in existence in India 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. For many years the Presidency banks acted as quasi-central banks, as did their successors. The three banks merged in 1921 to form the Imperial Bank of India, which, upon India's independence, became the State Bank of India.

Indian merchants in Calcutta established the Union Bank in 1839, but it failed in 1848 as a consequence of the economic crisis of 1848-49. The Allahabad Bank, established in 1865 and still functioning today, is the oldest Joint Stock bank in India.(Joint Stock Bank: A company that issues stock and requires shareholders to be held liable for the company's debt) It was not the first though. That honor belongs to the Bank of Upper India, which was established in 1863, and which survived until 1913, when it failed, with some of its assets and liabilities being transferred to the Alliance Bank of Simla.

When the American Civil War stopped the supply of cotton to Lancashire from the Confederate States, promoters opened banks to finance trading in Indian cotton. With large

exposure to speculative ventures, most of the banks opened in India during that period failed. The depositors lost money and lost interest in keeping deposits with banks. Subsequently, banking in India remained the exclusive domain of Europeans for next several decades until the beginning of the 20th century.

Foreign banks too started to arrive, particularly in Calcutta, in the 1860s. The Comptoire d'Escompte de Paris opened a branch in Calcutta in 1860, and another in Bombay in 1862; branches in Madras and Pondichery, then a French colony, followed. HSBC established itself in Bengal in 1869. Calcutta was the most active trading port in India, mainly due to the trade of the British Empire, and so became a banking center.

The Bank of Bengal, which later merged with the Bank of Bombay and the Bank of Madras to form the Imperial Bank of India in 1921. The first entirely Indian joint stock bank was the Oudh Commercial Bank, established in 1881 in Faizabad. It failed in 1958. The next was the Punjab National Bank, established in Lahore in 1895, which has survived to the present and is now one of the largest banks in India. Around the turn of the 20th Century, the Indian economy was passing through a relative period of stability. Around five decades had elapsed since the Indian Mutiny, and the social, industrial and other infrastructure had improved. Indians had established small banks, most of which served particular ethnic and religious communities. The presidency banks dominated banking in India but there were also some exchange banks and a number of Indian joint stock banks. All these banks operated in different segments of the economy. The exchange banks, mostly owned by Europeans, concentrated on financing foreign trade. Indian joint stock banks were generally under capitalized and lacked the experience and maturity to compete with the presidency and exchange banks. The period between 1906 and 1911, saw the establishment of banks inspired by the Swadeshi movement. The Swadeshi movement inspired local businessmen and political figures to found banks of and for the Indian community. A number of banks established then have survived to the present such as Bank of India, Corporation Bank, Indian Bank, Bank of Baroda, Canara Bank and Central Bank of India.

The fervour of Swadeshi movement lead to establishing of many private banks in Dakshina Kannada and Udupi district which were unified earlier and known by the name South Canara ( South Kanara ) district. Four nationalised banks started in this district and also a leading private sector bank. Hence undivided Dakshina Kannada district is known as "Cradle of Indian Banking". At least 94 banks in India failed between 1913 and 1918 as indicated in the following table: YEARS NUMBER OF BANKS THAT FAILED 1913 1914 1915 1916 1917 1918 12 42 11 13 9 7 274 710 56 231 76 209 35 109 5 4 25 1 AUTHORISED CAPITAL PAID UP CAPITAL

The partition of India in 1947 adversely impacted the economies of Punjab and West Bengal, paralyzing banking activities for months. India's independence marked the end of a regime of the Laissez-faire for the Indian banking. The Government of India initiated measures to play an active role in the economic life of the nation, and the Industrial Policy Resolution adopted by the government in 1948 envisaged a mixed economy. This resulted into greater involvement of the state in different segments of the economy including banking and finance. The major steps to regulate banking included: y In 1948, the Reserve Bank of India, India's central banking authority, was nationalized, and it became an institution owned by the Government of India.

In 1949, the Banking Regulation Act was enacted which empowered the Reserve Bank of India (RBI) "to regulate, control, and inspect the banks in India."

The Banking Regulation Act also provided that no new bank or branch of an existing bank could be opened without a license from the RBI, and no two banks could have common directors.

However, despite these provisions, control and regulations, banks in India except the State Bank of India, continued to be owned and operated by private persons. This changed with the nationalisation of major banks in India on 19 July 1969.

2.1.4 NATIONALISATION

The RBI was nationalized on January 1, 1949 in terms of the Reserve Bank of India By the 1960s, the Indian banking industry had become an important tool to facilitate the development of the Indian economy. At the same time, it had emerged as a large employer, and a debate had ensued about the possibility to nationalise the banking industry. Indira Gandhi, thethen Prime Minister of India expressed the intention of the GOI in the annual conference of the All India Congress Meeting in a paper entitled "Stray thoughts on Bank Nationalisation." The paper was received with positive enthusiasm. Thereafter, her move was swift and sudden, and the GOI issued an ordinance and nationalised the 14 largest commercial banks with effect from the midnight of July 19, 1969. Jayaprakash Narayan, a national leader of India, described the step as a "masterstroke of political sagacity." Within two weeks of the issue of the ordinance, the Parliament passed the Banking Companies (Acquisition and Transfer of Undertaking) Bill, and it received the presidential approval on 9 August 1969.

A second dose of nationalization of 6 more commercial banks followed in 1980. The stated reason for the nationalization was to give the government more control of credit delivery. With the second dose of nationalization, the GOI controlled around 91% of the banking business of India. Later on, in the year 1993, the government merged New Bank of India with Punjab

National Bank. It was the only merger between nationalized banks and resulted in the reduction of the number of nationalised banks from 20 to 19. After this, until the 1990s, the nationalised banks grew at a pace of around 4%, closer to the average growth rate of the Indian economy

2.1.5 LIBERALISATION

In the early 1990s, the then Narsimha Rao government embarked on a policy of liberalization, licensing a small number of private banks. These came to be known as New Generation tech-savvy banks, and included Global Trust Bank (the first of such new generation banks to be set up), which later amalgamated with Oriental Bank of Commerce Axis Bank(earlier as UTI Bank), ICICI Bank and HDFC Bank. This move, along with the rapid growth in the economy of India, revitalized the banking sector in India, which has seen rapid growth with strong contribution from all the three sectors of banks, namely, government banks, private banks and foreign banks.

The next stage for the Indian banking has been set up with the proposed relaxation in the norms for Foreign Direct Investment, where all Foreign Investors in banks may be given voting rights which could exceed the present cap of 10%,at present it has gone up to 74% with some restrictions.

The new policy shook the Banking sector in India completely. Bankers, till this time, were used to the 4-6-4 method (Borrow at 4%;Lend at 6%;Go home at 4) of functioning. The new wave ushered in a modern outlook and tech-savvy methods of working for traditional banks.All this led to the retail boom in India. People not just demanded more from their banks but also received more.

Currently (2007), banking in India is generally fairly mature in terms of supply, product range and reach-even though reach in rural India still remains a challenge for the private sector

and foreign banks. In terms of quality of assets and capital adequacy, Indian banks are considered to have clean, strong and transparent balance sheets relative to other banks in comparable economies in its region. The Reserve Bank of India is an autonomous body, with minimal pressure from the government. The stated policy of the Bank on the Indian Rupee is to manage volatility but without any fixed exchange rate-and this has mostly been true.

With the growth in the Indian economy expected to be strong for quite some timeespecially in its services sector-the demand for banking services, especially retail banking, mortgages and investment services are expected to be strong. One may also expect M&As, takeovers, and asset sales.

In March 2006, the Reserve Bank of India allowed Warburg Pincus to increase its stake in Kotak Mahindra Bank (a private sector bank) to 10%. This is the first time an investor has been allowed to hold more than 5% in a private sector bank since the RBI announced norms in 2005 that any stake exceeding 5% in the private sector banks would need to be vetted by them.

In recent years critics have charged that the non-government owned banks are too aggressive in their loan recovery efforts in connection with housing, vehicle and personal loans. There are press reports that the banks' loan recovery efforts have driven defaulting borrowers to suicide.

2.1.6 VISION OF BANKS IN INDIA The banking scenario in India has already gained all the momentum, with the domestic and international banks gathering pace. The focus of all banks in India has shifted their approach to 'cost', determined by revenue minus profit. This means that all the resources should be used efficiently to better the productivity and ensure a win-win situation. To survive in the long run, it is essential to focus on cost saving. Previously, banks focused on the 'revenue' model which is equal to cost plus profit. Post the banking reforms, banks shifted their approach to the 'profit' model, which meant that banks aimed at higher profit maximization

2.1.7 FOCUS OF BANKS IN INDIA

The banking industry is slated for growth in future with a more qualitative rather than quantitative approach. The total assets of all scheduled commercial banks by end-March 2010 is projected to touch Rs 40,90,000 crore. This is going to comprise around 65% of GDP at current market prices as compared to 67% in 2002-03. The bank's assets are estimated to grow at an annual composite rate of growth of 13.4% during the rest of the

decadeasagainst16.7%between1994-95and2002-03.

Barring the asset side, on the liability perspective, there will be huge additions to the capital base and reserves. People will rely more on borrowed funds, pace of deposit growth slowing down side by side. However, advances and investments would not see a healthy growth rate.

2.1.8 INDIAN BANKING INDUSTRY

The growth in the Indian Banking Industry has been more qualitative than quantitative and it is expected to remain the same in the coming years. Based on the projections made in the "India Vision 2020" prepared by the Planning Commission and the Draft 10th Plan, the report forecasts that the pace of expansion in the balance-sheets of banks is likely to decelerate. The total assets of all scheduled commercial banks by end-March 2010 is estimated at Rs 40,90,000 crores. That will comprise about 65 per cent of GDP at current market prices as compared to 67 per cent in 2002-03. Bank assets are expected to grow at an annual composite rate of 13.4 per cent during the rest of the decade as against the growth rate of 16.7 per cent that existed between 1994-95 and 2002-03. It is expected that there will be large additions to the capital base and reserves on the liability side. The Indian Banking Industry can be categorized into non-scheduled banks and scheduled banks. Scheduled banks constitute of commercial banks and co-operative banks. There are about 67,000

branches of Scheduled banks spread across India. As far as the present scenario is concerned the Banking Industry in India is going through transitionalphase.

The Public Sector Banks(PSBs), which are the base of the Banking sector in India account for more than 78 per cent of the total banking industry assets. Unfortunately they are burdened with excessive Non Performing assets (NPAs), massive manpower and lack of modern technology. On the other hand the Private Sector Banks are making tremendous progress. They are leaders in Internet banking, mobile banking, phone banking, ATMs. As far as foreign banks are concerned they are likely to succeed in the IndianBankingIndustry.

In the Indian Banking Industry some of the Private Sector Banks operating are IDBI Bank, ING Vyasa Bank, SBI Commercial and International Bank Ltd, Bank of Rajasthan Ltd. and banks from the Public Sector include Punjab National bank, Vijaya Bank, UCO Bank, Oriental Bank, Allahabad Bank among others. ANZ Grindlays Bank, ABN-AMRO Bank, American Express Bank Ltd, Citibank are some of the foreign banks operating in the Indian Banking Industry.

3.1 ORGANISATION STRUCTURE OF IOB

Chief Manager

Senior manager

Manager

Assistant manager

Clerks

Award staffs

Punes

Sweeper

Attender

3.2 SECTIONS IN IOB

In this iob Virugambakkam branch there are various sections available they are:

y y y y

Cashier section Advance section /loan section Deposit section Account opening & operating section

Let us see a brief description about all these sections below.

1) CASHIER SECTION

In this cashier section there are two different types of sections available such as:

y Main cash y Teller cash

Cashier section Main cash Chief cashier Teller cash Sub cashier

1. MAIN CASH

The customers or the common people can pay and drop money only if it is above rupees 15,000, and it can go till rupees 50, 00,000. But the minimum amount should start from rupees 15,000 only.

A separate cashier is allocated for this section that is called as the chief cashier. The salary paid to him is rupees 38,000. This person is responsible for all the monetary transaction which takes place every day in the bank. He/she will be having a separate ledger called as the general ledger in which the whole day transactions will be entered and by 4pm in evening the ledger must be tallied and sent to the central bank.

2. TELLER CASH

In this teller cash the customer and the common people can pay and drop money at any cost. It starts from the minimum of rupees 50 and it goes on. This teller cash section is located next to the main cash section. A separate cashier is allocated for this section who is called as the sub cashier.

The salary paid to him is rupees 34,000. A normal ledger will be prepared by the sub cashier and then it will be passed on to the chief cashier with which they prepare the general ledger. This normal ledger must be passed on to the chief cashier on or before 2pm.

2) ADVANCE / LOAN SECTION

In this advance section the bank provide up with different types of loans such as:

y y

Jewel loan Educational loan

y y y

Housing loan Cash credit loan Pension loan

Loan section Jewel loan Educational loan Housing loan Pensioner s loan

1. JEWEL LOAN

Here, a jewel appraiser is appointed by the government who is a licence holder. His duty is to check the jewel whether it is good or not. The rate of interest is of 12% per annum. The people can get the maximum of rupees 10 lacks and the minimum of rupees 10 thousand with the jewel. The bank is providing rupees 900 per gram, which is a lesser amount from the original value. This is done because if they are not able to retain there jewel then the bank will take the jewel in to action (yallam).

The main procedure is that with in one year they have to pay the interest amount. And also that within 3yrs they have to pay the principle amount and take the jewel back or else they will take the jewel in to action.

2. EDUCATIONAL LOAN

The educational loan is been provided for the welfare of the students. In this iob Virugambakkam branch they are allocating rupees 1 crores for education.

Requirements:  A bonafied certificate from the college.  The collateral security i.e. (document, property details etc.). The property should be valued more than the amount which is been claimed. The rate of interest is of 12% per annum.The main thing is that the interest must be paid during the study time and after the study is over the principle amount must be paid. But the interval may vary such as the period of 24 months, 40 months, 60 months, etc., the maximum amount which can be gained is rupees 15 lacks.

If suppose the student locates within the city or state then there is no need for the collateral security only the guarantor who gives guarantee for the student and the student guarantee is enough. But when it is compared with the abroad study then the collateral security is needed which should valued more than the money which is been gained. The bank itself provide the money at which source does the educational institution needed.

3. HOUSING LOAN

The housing loan will be provided only for the flat and not for the plots. If there is a building structure only the bank is providing with the loan amount.

Requirements:  Original document of the person who is claiming for the loan.    Salary slip must be submitted. Income tax (3 yrs) original copy. Parent document.

  

Encomprence certificate (ec) 30 yrs about the property. Patta- whether it comes under government survey Cmda plan approved

Contribution agreement if suppose any terms and conditions is there, then that must be registered. The bank is providing a panel lawyer where he/she is appointed by the government. The duty of them is to check whether this amount of loan can be provided for that land. The interest rate is 12.5% per annum. And also the panel engineer who estimates about the value of the property. The amount which is issued by the bank will be 85% of the market value of that property.

There are different time intervals for the repayment of the loan amount and the rate of interest will vary accordingly to that. If the loan is for 5 years then the rate of interest is 10%. If the loan is for 10 years then the rate of interest is 11%. And if the loan extended to 15 years then the rate of interest is 12.5%.The housing loan can be claimed only when two guarantor or any two persons must give the surety for the person who is claiming the loan amount.

4. PENSIONERS LOAN

This is been given only for the retired person. The pension amount will be credited to the retired persons account.

If suppose any medical expenses or any urgent domestic purposes occurred and if they are in need of money means then they will provide up with the loan based on the pension amount that too only 50% of the pension amount can be gained and it is only for 6 months of validity.

If the person who is getting the loan is a retired person from the same organisation (iob) then he/she will be getting 60% of the pension amount can be gained and it is only for 6 months of validity.

3) DEPOSITS SECTION

Deposit section is nothing but that the customers or the common people will provide the bank with money in the name of deposits, at regular intervals. So that the bank will provide them with some interest by calculating there principal amount.

These are the various sections in this deposit section. They are:      

Fixed deposit. Short term deposit. Recurring deposit. Sfdm. Sfdq. Nri deposit.

Deposits section Fixed deposit Short term deposit Recurring deposit Sfdm

Sfdq

Nri deposit

1. FIXED DEPOSIT

The customer and also the common people can deposit a fixed amount which ranges from the minimum amount of rupees 5000 and a maximum amount as it goes on. The period of maintaining deposit in the bank also varies, that is 1 year, 2 year and the maximum number of years the deposit can be maintained is for 5 years. The rate of interest varies accordingly to that .In this deposits the customers and also the other common people who gets the benefit in the way, that they can get loan if they are in need of it from their fixed amount. But it can be only minimum amount based on the fixed deposit. One condition is that the deposit should not be closed. They will be providing up with the 85% of the deposit amount as the loan amount.

Here, the rate of interest differs accordingly to number of years.  First year means the rate of interest would be 6.75%  First year till second year the rate of interest would be same such as 6.75%

 From second year till fifth year the rate of interest would be 7% If suppose they are of a senior citizen then for such type of people the rate of interest will be 0.75% extra. The main thing is that if the person is retired from the same bank where he/she has deposited and also if they come under the category of senior citizen then they will be getting the double benefit. For each and every year they have to reneuve the deposit. So that the right datas must be entered in the system for their future references.

2. SHORT TERM DEPOSIT

Here in this short term deposit the customers or even any common people can make deposits in the bank. The period of this deposit is for minimum of 7 days and a maximum of 181 days.

The rate of interest calculated for them is 5.5%. If it is a senior citizen then for

them

0.75% extra. So that they will be getting 6.25%. The minimum amount which can be deposited is rupees 5000 and the maximum amount as it goes on and also that if they are retired person from the bank and then they will be getting 1% extra.

3. RECURRING DEPOSIT

In this recurring deposit a separate account is been opened and the people will start to do their deposits. The minimum amount which can be deposited each month is rupees 50 and the maximum amount as it goes on. The time period varies in the form of 6 months, 12 months, 24 months, till 5 years.

This type of recurring deposit is mainly done for the future use. Such as marriage, education etc.., the rate of interest given for this recurring deposit is 6.75% and for the senior citizens the bank provides 0.75% extra.

4. SFDM

Sfdm - short fixed deposit monthly. In this scheme they will be putting the deposit amount according to the terms and conditions of the bank. If suppose they are depositing an amount of rupees one lacks means and if they are need of the interest amount from the deposited amount that is rupees one lacks on the monthly basis then they will be choosing this Sfdm scheme.

This type of scheme will be mainly chosen by the retired persons. They will be getting the pension amount as a whole sum from the bank or any organisation and then they will deposit the amount in the bank and make themselves comfort with that interest amount which they gain it monthly.

5. SFDQ

Sfdq short fixed deposit quarterly. In this scheme, it is same as the Sfdm scheme. It is given mainly for the retired persons. In simple words, it simply says that the people who are without income will be gaining this benefit. Here also they will be depositing the amount and will gain income out of it for every three months.

The main thing is that when they want to retrieve there deposit then they will be paid up with in there full principle amount. If it is a senior citizen then at any cost they will be providing them with 0.75% extra.

6. NRI DEPOSIT

Here, the person who is not an Indian but invested in India is called as an Nri deposit. Here they will be paid up with a low rate of interest. Such type of Nri deposit is so rare now a day. Only a few people are going to this Nri deposit. In this Nri deposit they have a scheme that is called as kyc. Kyc- knows your customers. They can know about their customers easily and this is mainly useful for knowing about them (Nris) full details.

4) ACCOUNT OPENING & OPERATING SECTION

In this account opening section any number of people can open accounts in the bank. It can be an individual account or else a joint account. When a person opens an account in the bank then he/she is becoming the customers of the bank. There are various different types of account prevailing in iob. They are:  Savings bank account (sb)  Current account (cc)

TYPES OF ACCOUNT

SAVINGS BANK ACCOUNT

1. SAVINGS BANK ACCOUNT

CURRENT ACCOUNT

This savings bank account comes under the category of regular account. Most of people choose this savings bank account. The interest rate given to this members belonging to

this account are 3.5%. There is no ruling that to have only the required minimum or the maximum amount. So that the members of this account can keep a low as well as a high balance in their account. In this savings bank account itself the people can either have induvidual account or an either or survivor account or joint account.

Savings bank Account

Induvidual Account Either or survivor Account

Joint Account

Let us see a brief description about all these accounts. a) INDUVIDUAL ACCOUNT

A separate passbook will be provided with a photo of the person who is opening an account. In this type of account only the person who is opening the account can only operate the account. It can be said as a personal account.

All the credit and debit entries of this account will be noted in the passbook which is issued to them. Here, there is no rule that they have to have the minimum and maximum amount. So that they can have any amount either it can be a lesser or higher amount. This induvidual account will be a self account and it will be maintained personally.

b) JOINT ACCOUNT

This joint account is same as the induvidual account. But here two persons joint together and opens the account. If suppose they want to drop money from their account then both of them must sign to receive money from their account. Thus both the people have equal rights to drop and receive money from there account. The main important thing which we want to note is that both the persons must sign in here to receive the money from there account.

c) EITHER OR SURVIER ACCOUNT

In this account two or more people can join together and operates the account. This account is right opposite to the joint account. Thus whenever money is needed they are able to receive money at any cause. Any one of them can sign in this account and receive money. Thus, either one of the person who is operating the account can receive money from there account.

1.

CURRENT ACCOUNT

Current account is mainly opened for the purpose of business. Most of the business people open the account under current account. Industries who all having account with the company name must have the account only with in the current account. For example:-pvr builders. They can deal only with the cheques. The important thing is that interest wont be given for this type of accounts. 1.3. OVERALL STUDY OF ORGANIZATION:

People in the organization: 1.lakshminarasiman- senior manager 2.vijayalakshmi-manager 3.sethu-cashier 4.Vanaja-cashier 5.bharani kumar-cashier 6.ganeshan-clerk 7.vijayabnu-clerk 8.usha-clerk 9.vimala joesph-clerk 10.Marimuthu-pune

CHAPTER II 2.1 STATEMENT OF THE PROBLEM: Customer satisfaction greatly affect the organization growth and development and there are several factors which effect the satisfaction level of an customer. The few factors which measures the satisfaction level of customers are service, accessibility, facility, brand name, etc.. Measuring customer satisfaction provides an indication of how successful the organization is
at providing products and/or services to the marketplace.

2.2. OBJECTIVE OF THE STUDY The objective of the study is as follows

the objective is to measure customers perceived satisfaction with their experience of a firms offerings

 To assess the satisfaction level of customers in Indian overseas bank  To identify the factors which affects and improves the customer satisfaction level.  To offer valuable suggestion to improve the customer satisfaction level. 2.3. LIMITATION OF THE STUDY  The survey is subjected to the bias and prejudices of the respondents. Hence 100% accuracy cant be assured.  The researcher was carried out in a short span of time, where in the researcher could not widen the study.  The study could not be generalized due to the fact that researcher adapted personal interview method.

CHAPTER-III 3.1. REVIEW OF LITERATURE: Definition:

Customer satisfaction is defined as "the number of customers, or percentage of total customers, whose reported experience with a firm, its products, or its services (ratings) exceeds specified satisfaction goals." Work done by Parasuraman, Zeithaml and Berry (Leonard L)[5] between 1985 and 1988 provides the basis for the measurement of customer satisfaction with a service by using the gap between the customer's expectation of performance and their perceived experience of performance. This provides the measurer with a satisfaction "gap" which is objective and quantitative in nature. Work done by Cronin and Taylor propose the "confirmation/disconfirmation" theory of combining the "gap" described by Parasuraman, Zeithaml and Berry as two different measures (perception and expectation of performance) into a single measurement of performance according to expectation. The usual measures of customer satisfaction involve a survey[6] with a set of statements using a Likert Technique or scale. The customer is asked to evaluate each statement and in term of their perception and expectation of performance of the organization being measured. Their satisfaction is generally measured on a five-point scale.

American Customer Satisfaction Index (ACSI) is a scientific standard of

customer satisfaction. Academic research has shown that the national ACSI score is a strong predictor of Gross Domestic Product (GDP) growth, and an even stronger predictor of Personal Consumption Expenditure (PCE) growth. On the microeconomic level, academic studies have shown that ACSI data is related to a firm's financial performance in terms of return on investment (ROI), sales, long-term firm value (Tobin's q), cash flow, cash flow volatility, human capital performance, portfolio returns, debt financing, risk, and consumer spending.[12] Increasing ACSI scores has been shown to predict loyalty, word-of-mouth recommendations, and purchase behavior. The ACSI measures customer satisfaction annually for more than 200 companies in 43 industries and 10 economic sectors. In addition to quarterly reports, the ACSI methodology can be applied to private sector companies and government agencies in order to improve loyalty and purchase intent. Two companies have been licensed to apply the methodology of the ACSI for both the private and public sector: CFI Group, Inc. and Foresee Results apply the ACSI to websites and other online initiatives. ASCI scores have also been calculated by independent researchers, for example, for the mobile phones sector,
[13] [14] [15]

higher education,

and electronic mail.

The Kano model is a theory of product development and customer satisfaction developed in the 1980s by Professor Noriaki Kano that classifies customer preferences into five categories: Attractive, OneDimensional, Must-Be, Indifferent, Reverse. The Kano model offers some insight into the product attributes which are perceived to be important to customers. POSE Analysis
[16]

offers an alternative to customer satisfaction. Instead of evaluating satisfaction with a

proposition, POSE Analysis determines both the positioning and strength of a proposition. POSE Analysis thus offers a competitive perspective to customer satisfaction. SERVQUAL or RATER is a service-quality framework that has been incorporated into customersatisfaction surveys (e.g., the revised Norwegian Customer Satisfaction Barometer between customer expectations and experience.
[17]

) to indicate the gap

CHAPTER- IV

4.1. RESEARCH METHODOLOGY: Research methodology is the systematic way to solve the research problem. It gives an idea about various steps adopted by the researcher in a systematic manner with an objective to determine various manners.

4.1. RESEARCH DESIGN:

Descriptive type of research design is chosen for this research study.

4.2. SAMPLING TECHNIQUE: The researcher has used Non-probability sampling in which convenience sampling is used. 4.3. DETERMINATION OF SAMPLE SIZE: The study sample constitutes 10 respondents constituting in the research area. 4.4. SOURCE OF DATA: Most of the data collected by the researcher is primary data and secondary data. Primary data is collected through personal interview, where the researcher and the respondent operate face to face and secondary data through the data and documents obtained from the organization. The researcher has used a structured questionnaire as a research instrument tool which consists of open ended questions, multiple choice and dichotomous questions in order to get data. Thus, Questionnaire is the data collection instrument used in the study. All the questions in the questionnaire are organized in such a way that obtain all the relevant information that is needed for the study