Summer Internship Project Report

ON
OPERATIONS AND LOANS OF ORIENTAL BANK OF COMMERCE

Submitted in partial fulfilment of requirement of Bachelor of Business

Administration (B.B.A) General

BBA V(A) Semester, Evening

Batch 2013-16
Submitted to:
Ms. Tanvi Gupta
Assistant Professor

Submitted by:
Garima Khurana
03124501713

JAGANNATH INTERNATIONAL MANAGEMENT SCHOOL, KALKAJI

Students undertaking
I hereby certify that this is my original work and it has never been submitted
elsewhere. The report has been completed in the specified period of time.

GARIMA KHURANA

ACKNOWLEDGEMENT

A lot of effort has gone into this project report. My thanks are due to many
people with whom I have been closely associated.
I would like to thank all those who have contributed in completing this project.
First of all, I would like to send my sincere thanks to MR.ATUL AGGARWAL,
my external mentor and MS.TANVI GUPTA my internal mentor for their
helpful hand in the completion of my project.
I would like to thank my entire beloved family & friends for providing me
monetary as well as non monetary support, as and when required, without
which this project would not have completed on time. Their trust and patience is
now coming out in form of this project.

Certificate of Completion
This is to certify that Garima Khurana of BBA Vth semester has completed the
SUMMER INTERNSHIP PROJECT REPORT under my guidance.

MS. TANVI GUPTA

(Assistant Professor)

CONTENTS

Description
Acknowledgement
Certificate of Completion
List of Figures
Executive Summary
Introduction To Topic
Objectives
Literature Review
Company Profile
Research Methodology
Analysis & Interpretation
Findings & Inferences
Limitations
Recommendations & Conclusion
Appendices
Bibliography

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LIST OF FIGURES
S.no

Figures

Page no.

1.

Figure 2.1

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2.

Figure 3.1

57

3.

Figure 3.2

58

4.

Figure 3.3

59

5.

Figure 3.4

60

6.

Figure 3.5

61

7.

Figure 3.6

62

8.

Figure 3.7

63

9.

Figure 3.8

64

10.

Figure 3.9

65

11.

Figure 3.10

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Executive Summary

The project provides an overview of operations of OBC located in Connaught

place, New Delhi. ORIENTAL BANK OF COMMERCE, The bank offers a
wide range of banking products and services such as deposit accounts, loans,
debit cards, credit cards, Insurance products, ATMs, Internet banking, Mobile
Banking etc.
Bank is a financial intermediary that creates credit by lending money to a

borrower, thereby creating a corresponding deposit on the bank's balance sheet.

Lending activities can be performed either directly or indirectly through capital
markets.
Banks offer many different channels to access their banking and other services:

Automated teller machines

A branch is a retail location

Call centre

Mail: most banks accept cheque deposits via mail and use mail to
communicate to their customers, e.g. by sending out statements

Mobile banking is a method of using one's mobile phone to conduct

banking transactions

Online banking is a term used for performing multiple transactions,

payments etc. over the Internet

Relationship managers, mostly for private banking or business banking,

often visiting customers at their homes or businesses

Telephone banking is a service which allows its customers to conduct

transactions over the telephone with automated attendant or when requested
with telephone operator

Bank generates revenue in a variety of different ways including interest,

transaction fees and financial advice. The main method is via
charging interest on the capital it lends out to customers. The bank profits from
the difference between the level of interest it pays for deposits and other sources
of funds, and the level of interest it charges in its lending activities.

CHAPTER I INTRODUCTION TO THE TOPIC

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INTRODUCTION TO THE TOPIC

Bank- A financial institution licensed as a receiver of deposits. There are two
types of banks: commercial/retail banks and investment banks.
Finance is a field that deals with the allocation of assets and liabilities over time
under conditions of certainty and uncertainty. Finance can also be defined as the
science of money management. A key point in finance is the time value of
money, which states that purchasing power of one unit of currency, can vary
over time. Finance aims to price assets based on their risk level and their
expected rate of return. Finance can be broken into three different subcategories: public finance, corporate finance and personal finance.
The management of large amounts of money, especially by governments or
large companies.
A commercial bank is a type of bank that provides services such as accepting
deposits, making business loans, and offering basic investment products.
Commercial bank can also refer to a bank or a division of a bank that mostly
deals with deposits and loans from corporations or large businesses, as opposed
to individual members of the public
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Primary functions
Commercial banks perform various functions:

Commercial banks accept various types of deposits from public

especially from its clients, including saving account deposits, recurring
account deposits, and fixed deposits. These deposits are payable after a
certain time period

Commercial banks provide loans and advances of various forms,

including an overdraft facility, cash credit, bill discounting, money at call
etc. They also give demand and demand and term loans to all types of clients
against proper security.

Credit creation is the most significant function of commercial banks.

While sanctioning a loan to a customer, they do not provide cash to the
borrower. Instead, they open a deposit account from which the borrower can
withdraw. In other words, while sanctioning a loan, they automatically create
deposits, known as a credit creation from commercial banks.

Secondary functions
Along with primary functions, commercial banks perform several secondary
functions. The secondary functions of commercial banks can be divided into
agency functions and utility functions.
Agency functions include:

To collect and clear cheques, dividends and interest warrant.

To make payments of rent, insurance premium, etc.

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To deal in foreign exchange transactions.

To purchase and sell securities.

To act as trustee, attorney, correspondent and executor.

To accept tax proceeds and tax returns.

Utility functions include:

To provide safety locker facility to customers.

To provide money transfer facility.

To issue traveller's cheque.

To act as referees.

To accept various bills for payment: phone bills, gas bills, water bills, etc.

To provide merchant banking facility.

To provide various cards: credit cards, debit cards, smart cards, etc.
In finance, a loan is a debt provided by one entity (organization or
individual) to another entity at an interest rate, and evidenced by
a note which specifies, among other things, the principal amount, interest
rate, and date of repayment. A loan entails the reallocation of the
subject asset for a period of time, between the lender and the borrower.
In a loan, the borrower initially receives or borrows an amount of money,
called the principal, from the lender, and is obligated to pay
back or repay an equal amount of money to the lender at a later time.
13

The loan is generally provided at a cost, referred to as interest on the debt,

which provides an incentive for the lender to engage in the loan. In a
legal loan, each of these obligations and restrictions is enforced
by contract, which can also place the borrower under additional
restrictions known as loan covenants. Although this article focuses on
monetary loans, in practice any material object might be lent.
Acting as a provider of loans is one of the principal tasks for financial
institutions.
Introduction to Advance Product:
Now a day not all the people have the capacity to fulfill their requirement by
their own earning, thats why they need help from others. For this so many
government & private sector bank provide them money to fulfill their
requirement, thats call the Advance Product (loan product) of the bank. All the
banks have so many different types of advance product as per the requirement
of the people or customers. In Bhubaneswar also there are so many banks those
provide loan to the people for different causes.

Types of Advance Product

Home Loan
Educational Loan
Car Loan
Property Loan
Loan Against Shares\Debentures
Personal Loan
Now a day a large no. of people are taking loan form different banks. It helps
people to fulfill their need and it really easy to repayment the loan amount with
a longer repayment period.
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OBC Home Loans:

Purpose
Purchase/ Construction of House/ Flat Purchase of a plot of land for
construction of House Extension/ repair/ renovation/ alteration of an existing
House/ Flat Purchase of Furnishings and Consumer Durables as a part of the
project cost. Takeover of an existing loan from other Banks/ Housing Finance
Companies.
Eligibility Minimum age
18 years as on the date of sanction
Maximum age
Limit for a Home Loan borrower is fixed at 70 years, i.e. the age by which the
loan should be fully repaid. Availability of sufficient, regular and continuous
source of income for servicing the loan repayment.

Loan Amount

To enhance loan eligibility you have option to add:

- Income of your spouse/
your son/ daughter living with you, provided they have a steady income and his/
her salary account is maintained with OBC
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CAR LOAN:
Purpose
You can take finance for: A new car, jeep or Multi Utility Vehicles (MUVs)A used car /
jeep (not more than 5 years old). (Any make or model).Takeover of existing
loan from other Bank/Financial institution
Eligibility
To avail an OBC Car Loan, you should be :
Individual between the age of 21-65 years of age.
A Permanent employee of State / Central Government, Public Sector
Undertaking, Private company or a reputed establishment
A Professionals or self-employed individual who is an income tax assessee
A Person engaged in agriculture and allied activities.
-Net Annual Income Rs. 100,000/- and above.

Salient Features Loan Amount

There is no upper limit for the amount of a car loan. A maximum loan amount
of 2.5 times the net annual income can be sanctioned. If married, your spouse's
income could also be considered provided the spouse becomes a co-borrower in
the loan. The loan amount includes finance for one-time road tax, registration
and insurance. No ceiling on the loan amount for new cars. Loan amount for
used car is subject to a maximum limit of Rs. 15 lacs.
Type of Loan
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1. Term Loan
2. Overdraft
a) For New vehicles only
b) Minimum loan amount: Rs. 3 lacs.
Documents required
You would need to submit the following documents along with the completed
application form if you are an existing OBC account holder:
1. Statement of Bank account of the borrower for last 12 months.
2.2 passport size photographs of borrower(s).
3. Signature identification from bankers of borrower(s).
4. A copy of passport /voters ID card/PAN card.
5. Proof of residence.
6. Latest salary-slip showing all deductions
7. I.T. Returns/Form 16: 2 years for salaried employees and 3 years
for professional/self-employed/businessmen duly accepted by the ITO wherever
applicable to be submitted.
8. Proof of official address for non-salaried individuals. If you are not
an account holder with OBC you would also need to furnish documents that
establish your identity and give proof of residence.
Repayment
You enjoy the longest repayment period in the industry with us.
Repayment period:
For Salaried: Maximum of 84 months
For Self-employed & Professionals: Maximum 60 months
Repayment period for used vehicles: Up to 84 months from the date of
original purchase of the vehicle.

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EDUCATION LOAN:
A term loan granted to Indian Nationals for pursuing higher education in
India or abroad where admission has been secured.
Eligible Courses
All courses having employment prospects are eligible.
Graduation courses/ Post graduation courses/ Professional courses
Other courses approved by UGC/Government/AICTE etc.
Expenses considered for loan
Fees payable to college/school/hostel
Examination/Library/Laboratory fees
Purchase of Books/Equipment/Instruments/Uniforms
Caution Deposit/Building Fund/Refundable Deposit (maximum 10% tuition
fees for the entire course)
Travel Expenses/Passage money for studies abroad
Purchase of computers considered necessary for completion of course

AMOUNT OF LOAN
-For studies in India, maximum Rs. 10 lacs
Studies abroad, maximum Rs. 20 lacs
InterestRates
For loans up to Rs.4 lacs - 11.75 % p.a. Floating
For loans above Rs. 4 lacs and upto Rs.7.50 lacs - 13.25 % Floating
For loans above Rs.7.50 lacs - 12.25% p.a. Floating

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Processing Fees
No processing fee/ upfront charges
Deposit of Rs. 5000/- for education loan for studies abroad which will
be adjusted in the margin money
Repayment Tenure
Repayment will commence one year after completion of course or 6 months
after securing a job, whichever is earlier.
- If studying in India maximum loan amount extends till 10 lac and the
repayment period is 5-7 yrs
- If studying in abroad amount of loan cannot extend 20lac and repayment
period is 5-7yrs
COMMON PRACTICES FOLLOWED BY OBC BRANCHES
Display business hours.
Render courteous services.
Attend to all customers present in the banking hall at the close of
business hours.
Provide separate 'Enquiry' or 'May I help you' counter at large
branches.
Offer nomination facility to all deposit accounts (i.e. account opened
in individual capacity) and all safe deposit locker hirers (i.e. individual
hirers).
Display interest rates for various deposit schemes from time to time.
Notify change in interest rates on advances.
Provide details of various deposit schemes/services of the Bank.
Issue Demand Drafts, Pay Orders, etc.
Display Time-Norms for various banking transactions.
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 Pay interest for delayed credit of outstation cheques, as advised by

Reserve Bank of India (RBI) from time to time.
Accord immediate credit in respect of outstation and local cheques
upto a specified limit subject to certain conditions, as advised by RBI
from time to time.
Provide complaint/suggestion box in the branch premises

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OBJECTIVES

OBJECTIVE OF THE STUDY

To have an insight into the attitudes and behaviors of customers.
To find out the differences among perceived service and expected service.

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To produce an executive service report to upgrade service characteristics

To understand various operations of bank.
To access the degree of satisfaction of the consumers who have availed the
services.

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LITERATURE REVIEW

Literature review

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The Bank's operational objectives include promoting financial stability,

guiding sound banking operations, maintaining the stability of the
internal and external value of the currency and, within the scope of the
above three objectives, fostering economic development.

A bank generally has 3 main departments:

- General banking
- Forex department
- Loans department

GENERAL BANKING
General banking is the heart or we can say its the department without
which functioning of bank is not possible. It basically deals with
customers, this department is not a profit making department it only
works for customer satisfaction
It includes general deposits, withdrawal, transfers, rtgs, neft and fixed
deposits
-Deposits-'Bank Deposits' Money placed into a banking institution for
safekeeping. Bank deposits are made to deposit accounts at a banking
institution, such as savings accounts, checking accounts and money
market accounts.
A deposit account is a savings account, current account or any other type
of bank account that allows money to be deposited and withdrawn by the
account holder. These transactions are recorded on the bank's books, and
the resulting balance is recorded as a liability for the bank and represents
the amount owed by the bank to the customer. Some banks may charge a
fee for this service, while others may pay the customer interest on the
funds deposited.
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Transactional account
A deposit account held at a bank or other financial institution, for the
purpose of securely and quickly providing frequent access to funds on
demand, through a variety of different channels. Because money is
available on demand these accounts are also referred to as demand
accounts or demand deposit accounts, except in the case of NOW
Accounts.
Money market account
A deposit account that pays interest, and for which short notice (or no
notice) is required for withdrawals. In the United States, it is a style of instant
access deposit subject to federal savings account regulations, such as a monthly
transaction limit.
Savings account
Accounts maintained by retail banks that pay interest but can not be used
directly as money (for example, by writing a cheque). Although not as
convenient to use as checking accounts, these accounts let customers
keep liquid assets while still earning a monetary return.
Time deposit
A money deposit at a banking institution that cannot be withdrawn for a
preset fixed 'term' or period of time. When the term is over it can be
withdrawn or it can be rolled over for another term. Generally speaking,
the longer the term the better the yield on the money.

Call deposit

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A deposit account that allows for the withdrawal of funds without penalty,
generally without notification to the bank. Often it bears a favourable
interest rate, but also requires a minimum balance to take advantage of
the benefits

Money transfer generally refers to one of the following cashless modes of

payment or payment systems:

Electronic funds transfer, an umbrella term mostly used for bank cardbased payments

Wire transfer, an international expedited bank-to-bank funds transfer

Giro, also known as direct deposit

Money order, transfer by postal cheque, money gram or others

Remittance, a transfer of money by a foreign worker to his or her home

country

Real-time gross settlement systems (RTGS) are specialist funds transfer

systems where transfer of money or securities takes place from one bank to
another on a "real time" and on "gross" basis. Settlement in "real time" means
payment transaction is not subjected to any waiting period. The transactions are
settled as soon as they are processed. "Gross settlement" means the transaction
is settled on one to one basis without bundling or netting with any other
transaction. Once processed, payments are final and irrevocable.

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RTGS systems are typically used for high-value transactions that require
immediate clearing. In some countries the RTGS systems may be the only way
to get same day cleared funds and so may be used when payments need to be
settled urgently. However, most regular payments would not use a RTGS
system, but instead would use a national payment system or network that allows
participants to batch and net payments.
RTGS systems are usually operated by a country's central bank as it is seen as a
critical infrastructure for a country's economy. Economists believe that an
efficient national payment system reduces the cost of exchanging goods and
services, and is indispensable to the functioning of the interbank, money, and
capital markets. A weak payment system may severely drag on the stability and
developmental capacity of a national economy; its failures can result in
inefficient use of financial resources, inequitable risk-sharing among agents,
actual losses for participants, and loss of confidence in the financial system and
in the very use of money
National Electronic Funds Transfer (NEFT) is one of the most prominent
electronic fund systems of India. NEFT is a facility provided to bank customers
to enable them to transfer funds easily and securely on a one-to-one basis. It is
done via electronic messages. This is not on real-time basis like RTGS (Real
Time Gross Settlement). This is a "net" transfer facility which is executed in
hourly batches resulting in a time lag. NEFT facilities are available in 30,000
bank branches all over the country and work on a batch mode.
NEFT has gained popularity due to it saving on time and the ease with which
the transactions can be concluded. This reflects from the fact that 42% of all
electronic transactions in the 2008 financial year were NEFT transactions.
A fixed deposit (FD) is a financial instrument provided by banks which
provides investors with a higher rate of interest than a regular savings account,
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until the given maturity date. It may or may not require the creation of a
separate account. It is known as a term deposit or time deposit in Canada,
Australia, New Zealand, and the US, and as a bond in the United Kingdom and
India. They are considered to be very safe investments. Term deposits in India
and Pakistan is used to denote a larger class of investments with varying levels
of liquidity. The defining criteria for a fixed deposit is that the money cannot be
withdrawn from the FD as compared to a recurring deposit or a demand deposit
before maturity. Some banks may offer additional services to FD holders such
as loans against FD certificates at competitive interest rates. It's important to
note that banks may offer lesser interest rates under uncertain economic
conditions. The interest rate varies between 4 and 11 percent. The tenure of an
FD can vary from 7, 15 or 45 days to 1.5 years and can be as high as 10
years. These investments are safer than Post Office Schemes as they are covered
by the Deposit Insurance and Credit Guarantee Corporation (DICGC).
LOANS
In finance, a loan is a debt provided by one entity (organization or individual) to
another entity at an interest rate, and evidenced by a note which specifies,
among other things, the principal amount, interest rate, and date of repayment.
A loan entails the reallocation of the subject asset(s) for a period of time,
between the lender and the borrower.
In a loan, the borrower initially receives or borrows an amount of money, called
the principal, from the lender, and is obligated to pay back or repay an equal
amount of money to the lender at a later time.
The loan is generally provided at a cost, referred to as interest on the debt,
which provides an incentive for the lender to engage in the loan. In a legal loan,
each of these obligations and restrictions is enforced by contract, which can also
28

place the borrower under additional restrictions known as loan covenants.

Although this article focuses on monetary loans, in practice any material object
might be lent.
Acting as a provider of loans is one of the principal tasks for financial
institutions. For other institutions, issuing of debt contracts such as bonds is a
typical source of funding.

TYPES OF LOANS
Secured
A secured loan is a loan in which the borrower pledges some asset (e.g. a car or
property) as collateral.
A mortgage loan is a very common type of money, used by many individuals to
purchase things. In this arrangement, the money is used to purchase the
property. The financial institution, however, is given security a lien on the
title to the house until the mortgage is paid off in full. If the
borrower defaults on the loan, the bank would have the legal right to repossess
the house and sell it, to recover sums owing to it.
In some instances, a loan taken out to purchase a new or used car may be
secured by the car, in much the same way as a mortgage is secured by housing.
The duration of the loan period is considerably shorter often corresponding
to the useful life of the car. There are two types of auto loans, direct and
indirect. A direct auto loan is where a bank gives the loan directly to a
consumer. An indirect auto loan is where a car dealership acts as an
intermediary between the bank or financial institution and the consumer.
Unsecured
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Unsecured loans are monetary loans that are not secured against the borrower's
assets. These may be available from financial institutions under many different
guises or marketing packages

credit card debt

personal loans

bank overdrafts

credit facilities or lines of credit

corporate bonds (may be secured or unsecured)

peer-to-peer lending

The interest rates applicable to these different forms may vary depending on the
lender and the borrower. These may or may not be regulated by law. In the
United Kingdom, when applied to individuals, these may come under the
Consumer Credit Act 1974.
Interest rates on unsecured loans are nearly always higher than for secured
loans, because an unsecured lender's options for recourse against the borrower
in the event of default are severely limited. An unsecured lender must sue the
borrower, obtain a money judgment for breach of contract, and then pursue
execution of the judgment against the borrower's unencumbered assets (that is,
the ones not already pledged to secured lenders). In insolvency proceedings,
secured lenders traditionally have priority over unsecured lenders when a court
divides up the borrower's assets. Thus, a higher interest rate reflects the
additional risk that in the event of insolvency, the debt may be uncollectible.
Demand
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Demand loans are short term loans that are typically in that they do not have
fixed dates for repayment and carry a floating interest rate which varies
according to the prime lending rate. They can be "called" for repayment by the
lending institution at any time. Demand loans may be unsecured or secured.
Subsidized
A subsidized loan is a loan on which the interest is reduced by an explicit or
hidden subsidy. In the context of college loans in the United States, it refers to a
loan on which no interest is accrued while a student remains enrolled in
education.
Concessional
A concessional loan, sometimes called a "soft loan", is granted on terms
substantially more generous than market loans either through below-market
interest rates, by grace periods or a combination of both.[3] Such loans may be
made by foreign governments to developing countries or may be offered to
employees of lending institutions as an employee benefit.

TARGET MARKETS
Personal
Loans can also be subcategorized according to whether the debtor is an
individual person (consumer) or a business. Common personal loans include
mortgage loans, car loans, home equity lines of credit, credit cards, instalment
loans and payday loans. The credit score of the borrower is a major component
in and underwriting and interest rates of these loans. The monthly payments of
personal loans can be decreased by selecting longer payment terms, but overall
31

interest paid increases as well. For car loans in the U.S., the average term was
about 60 months in 2009.
Commercial
Loans to businesses are similar to the above, but also include commercial
mortgages and corporate bonds. Underwriting is not based upon credit score but
rather credit rating.

FOREX
The foreign exchange market (forex, FX, or currency market) is a
global decentralized market for the trading of currencies. In terms of volume of
trading, it is by far the largest market in the world. The main participants in this
market are the larger international banks. Financial around the world function as
anchors of trading between a wide range of multiple types of buyers and sellers
around the clock, with the exception of weekends. The foreign exchange market
determines the relative values of different currencies.
The foreign exchange market works through financial institutions, and it
operates on several levels. Behind the scenes banks turn to a smaller number of
financial firms known as dealers, who are actively involved in large quantities
of foreign exchange trading. Most foreign exchange dealers are banks, so this
behind-the-scenes market is sometimes called the interbank market, although
a few insurance companies and other kinds of financial firms are involved.
Trades between foreign exchange dealers can be very large, involving hundreds
of millions of dollars. Because of the sovereignty issue when involving two
currencies, forex has little (if any) supervisory entity regulating its actions.
32

The foreign exchange market assists international trade and investments by

enabling currency conversion. For example, it permits a business in the United
States to import goods from European Union member states, especially Euro
zone members, and pay Euros, even though its income is in United States
dollars. It also supports direct speculation and evaluation relative to the value of
currencies, and the carry trade, speculation based on the interest rate differential
between two currencies.
In a typical foreign exchange transaction, a party purchases some quantity of
one currency by paying with some quantity of another currency.

Commercial companies
An important part of the foreign exchange market comes from the financial
activities of companies seeking foreign exchange to pay for goods or services.
Commercial companies often trade fairly small amounts compared to those of
banks or speculators, and their trades often have little short-term impact on
market rates. Nevertheless, trade flows are an important factor in the long-term
direction of a currency's exchange rate. Some multinational corporations
(MNCs) can have an unpredictable impact when very large positions are
covered due to exposures that are not widely known by other market
participants.
Central banks
National central banks play an important role in the foreign exchange markets.
They try to control the money supply, inflation, and/or interest rates and often
have official or unofficial target rates for their currencies. They can use their
often substantial foreign exchange reserves to stabilize the market.
33

Nevertheless, the effectiveness of central bank "stabilizing speculation" is

doubtful because central banks do not go bankrupt if they make large losses,
like other traders would, and there is no convincing evidence that they do make
a profit trading.
Foreign exchange fixing
Foreign exchange fixing is the daily monetary exchange rate fixed by the
national bank of each country. The idea is that central banks use the fixing time
and exchange rate to evaluate behaviour of their currency. Fixing exchange rates
reflects the real value of equilibrium in the market. Banks, dealers and traders
use fixing rates as a trend indicator.
The mere expectation or rumour of a central bank foreign exchange intervention
might be enough to stabilize a currency, but aggressive intervention might be
used several times each year in countries with a dirty float currency regime.
Central banks do not always achieve their objectives. The combined resources
of the market can easily overwhelm any central bank. Several scenarios of this
nature were seen in the 199293 European Exchange Rate Mechanism collapse,
and in more recent times in Asia.

Hedge funds as speculators

About 70% to 90% of the foreign exchange transactions conducted are
speculative. This means the person or institution that bought or sold the
currency has no plan to actually take delivery of the currency in the end; rather,
they were solely speculating on the movement of that particular currency. Since
1996, hedge funds have gained a reputation for aggressive currency speculation.
They control billions of dollars of equity and may borrow billions more, and
34

thus may overwhelm intervention by central banks to support almost any

currency, if the economic fundamentals are in the hedge funds' favour.

Investment management firms

Investment management firms (who typically manage large accounts on behalf
of customers such as pension funds and endowments) use the foreign exchange
market to facilitate transactions in foreign securities. For example, an
investment manager bearing an international equity portfolio needs to purchase
and sell several pairs of foreign currencies to pay for foreign securities
purchases.
Some investment management firms also have more speculative specialist
currency operations, which manage clients' currency exposures with the aim of
generating profits as well as limiting risk. While the number of this type of
specialist firms is quite small, many have a large value of assets under
management and, hence, can generate large trades.
Retail foreign exchange traders
Individual retail speculative traders constitute a growing segment of this market
with the advent of retail foreign exchange trading, both in size and importance.
Currently, they participate indirectly through brokers or banks. Retail brokers,
while largely controlled and regulated in the USA by the Commodity Futures
Trading Commission and National Futures Association, have in the past been
subjected to periodic foreign exchange fraud. Those NFA members that would
traditionally be subject to minimum net capital requirements, FCMs and IBs,
are subject to greater minimum net capital requirements if they deal in Forex. A
number of the foreign exchange brokers operate from the UK under Financial
Services Authority regulations where foreign exchange trading using margin is
35

part of the wider over-the-counter derivatives trading industry that includes

Contract for differences and financial spread betting.
There are two main types of retail FX brokers offering the opportunity for
speculative currency trading: brokers and dealers or market makers. Brokers
serve as an agent of the customer in the broader FX market, by seeking the best
price in the market for a retail order and dealing on behalf of the retail customer.
They charge a commission or mark-up in addition to the price obtained in the
market. Dealers or market makers, by contrast, typically act as principal in the
transaction versus the retail customer, and quote a price they are willing to deal
at.
Non-bank foreign exchange companies
Non-bank foreign exchange companies offer currency exchange and
international payments to private individuals and companies. These are also
known as foreign exchange brokers but are distinct in that they do not offer
speculative trading but rather currency exchange with payments (i.e., there is
usually a physical delivery of currency to a bank account).
It is estimated that in the UK, 14% of currency transfers/payments are made via
Foreign Exchange Companies. These companies' selling point is usually that
they will offer better exchange rates or cheaper payments than the customer's
bank. These companies differ from Money Transfer/Remittance Companies in
that they generally offer higher-value services.
Money transfer/remittance companies and bureaux de change
Money transfer companies/remittance companies perform high-volume lowvalue transfers generally by economic migrants back to their home country. In
2007, the Aite Group estimated that there were $369 billion of remittances (an
36

increase of 8% on the previous year). The four largest markets (India, China,
Mexico and the Philippines) receive $95 billion. The largest and best known
provider is Western Union with 345,000 agents globally followed by UAE
Exchange.
Bureaux de change or currency transfer companies provide low value foreign
exchange services for travellers. These are typically located at airports and
stations or at tourist locations and allow physical notes to be exchanged from
one currency to another. They access the foreign exchange markets via banks or
non bank foreign exchange companies.

37

CHAPTER II COMPANY PROFILE

INTRODUCTION
Oriental Bank of Commerce India was established in the year 1943 on
19th February in Lahore. After partition, Oriental Bank of Commerce shifted its
Registered Office from Lahore to Amritsar paying every rupee to its departing
38

customers. Oriental Bank of Commerce was nationalized on 15th April in 1980.

Then OBC bank had 307 branches with Rs. 282.61 crores as deposits and as
advance Rs. 152.69.The National Institute of Bank Management (NIBM), rated
OBC Bank as "Customer Friendly" Bank. Oriental Commercial Bank Limited is
licensed by the Central Bank of Kenya as a commercial Bank to carryout
banking activities under Banking Act Chapter 488 of the Kenyan laws. The
Bank started its operations in the year 2002, with new investments and Board
of Directors, by taking over the assets and liabilities of the erstwhile Delphis
Bank, from Central Bank of Kenya. It is a middle sized Bank and one of the
financially robust Banks in, Kenya in terms of shareholders fund and liquidity.
Oriental Commercial Bank Ltd has its Head Office at Finance House, Koinange
Street- Nairobi. The Bank is managed by a professional team of management
who are ably supervised by a Board of Directors consisting of eminent
personalities of society having high level of integrity and professional skills in
their respective areas of operations. We are committed to provide quality
banking Service to our customers, however by strictly adhering to the
Regulatory Guidelines as applicable within Kenya and, internationally. Our
emphasis always remains on carefully following Know your Customers and
Anti Money Laundering Guidelines.

Corporate banking, Personal banking, Industrial finance, Agricultural finance,

Financing of trade, International banking Oriental Bank Commerce has been
ranked 38th amongst top 500 companies by The Economic Times. OBC
has earned 9th position among top 50 trusted brands in India.Oriental Bank C
ommerce India maintains relationship with more than 200 leading
international banksworldwide. OBC India has Rupee Drawing
Arrangements with 15 exchange companies in UAE and 1 in Singapore.

39

MANAGEMENT PROFILE
Name
Sh.T.Y. Prabhu

Designation
Chairman and Managing director

Sh. H RatnakaraHegde

Executive Director

Sh. S.C Sinha

Executive Director

V Vijay Sai Reddy

Director

R S Maharishi

Director

U K Khaitan

Director

K B R Naidu

Director

SumitaDawra

Director

Sh. S.K Newley

Director

Vijay Jagirdar

Director

T Valliappan

Director

C K Sabharwal

Director

40

Figure 2.1

SCHEDULED COMMERCIAL BANKS IN INDIA (Competitors)

41

The commercial banking structure in India consists of:

Scheduled Commercial Banks in India
Unscheduled Banks in India
Scheduled Banks in India constitute those banks which have been included in
the Second Schedule of Reserve Bank of India (RBI) Act, 1934. RBI in turn
includes only those banks in this schedule which satisfy the criteria laid down
vide section 42 (6) (a) of the Act. As on 30th June, 1999, there were 300
scheduled banks in India having a total network of 64,918 branches. The
scheduled commercial banks in India comprise of State bank of India and its
associates (8), nationalized banks (19), foreign banks (45), private sector banks
(32), co-operative banks and regional rural banks."Scheduled banks in India"
means the State Bank of India constituted under the State Bank of India Act,
1955 a subsidiary bank as defined in the State Bank of India (Subsidiary Banks)
Act, 1959 a corresponding new bank constituted under section 3 of the Banking
Companies (Acquisition and Transfer of Undertakings) Act, 1970 or under
section 3 of the Banking Companies (Acquisition and Transfer of Undertakings)
Act, 1980 or any other bank being a bank included in the Second Schedule to
the Reserve Bank of India Act, 1934 but does not include a co-operative
bank"."Non-scheduled bank in India" means a banking company as defined in
clause (c) of section 5 of the Banking Regulation Act, 1949 which is not a
scheduled bank".

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

42

State Bank of India

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

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

43

ING Vysya Bank Ltd

Axis Bank Ltd
Indusind Bank Ltd
ICICI Bank Ltd
South Indian Bank
Centurion Bank Ltd
HDFC Bank Ltd
IDBI Bank Ltd
YES BANK
The following are the Scheduled Foreign Banks in India:
American Express Bank Ltd.
ANZ Gridlays Bank Plc.
Bank of America NT & SA
Bank of Tokyo Ltd.
BanqucNationale de Paris
Barclays Bank Plc
Citi Bank N.C.
Deutsche Bank A.G.
Hongkong and Shanghai Banking Corporation
Standard Chartered Bank.
The Chase Manhattan Bank Ltd.
Dresdner Bank AG.

PRODUCTS AND SERVICES

44

Saving Accounts
How to Open an Account
Download or obtain Account Opening Form from the nearest branch, fill it
up properly and deposit the same with the branch of your choice along with the
following:1. Furnish proof of Residence (In the form of a copy of Ration Card/
Passport/Driving License/ Electricity Bill/ Telephone Bill/ Identity Card issued
by any reputed institution. ORIGINALS be shown only at the time of scrutiny
of papers)/ Business address.
2. Furnish 2 photographs of all the prospective account holder(s).
3. Introduction about you from a person known to the bank preferably by an
Account Holder of the Branch, whose account has run satisfactorily at least
for the past six months.
4. Furnish PAN or declaration of Form No. 60/61as the case may be. The
minimum balance will be:-

Current Account
45

How to Open an Account

Download or obtain Account Opening Form from the nearest branch, fill it
up properly and deposit the same with the branch of your choice along with the
following:1.Furnish proof of Residence (In the form of a copy of Ration Card/
Passport/Driving License/ Electricity Bill/ Telephone Bill/ Identity Card issued
by any reputed institution. ORIGINALS be shown only at the time of scrutiny
of papers)/Business address.
2. Furnish 2 photographs of all the prospective account holder(s).
3. Introduction about you from a person known to the bank preferably by an
Accountholder of the Branch, whose account has run satisfactorily at least for
the past six months.
4. Furnish undertakings/ documents/ declarations as applicable. Please refer
Current Account opening form for details.
5. Furnish PAN or declaration of Form No.60/61as the case may be.
6. Minimum deposits.

Scheme Credit Schemes -Flexible Housing Loan, Car Finance, Personal Loan,
Credit Cards
Social Banking -MahilaUdyamNidhi Scheme, Krishi Card, OBC Farmers
Welfare Trust
Corporate Banking -Gold Card scheme for exporters, EXIM finance

46

Business Sector -OBC Karigar credit card, OBC KushalUdhami, OBC

PragatiUdhami, OBC VikasUdhami
Flexi Fixed Deposit Scheme:-We are pleased to inform that Flexi Deposit Scheme
for the benefit of our depositor customers has been approved by the Board

PRODUCT & BENEFIT:

Through reverse sweep facility, the amount lying in Flexi Fixed Deposit shall be
available to the depositor whenever there is a requirement of funds in his / her /
their operative account i.e. savings / current account. As such, whenever the
depositor issues a cheque or uses ATM card and the available balance in his/her
connected Savings/Current Account is not sufficient, Reverse Sweep will
automatically withdraw the required amount from Flexi Fixed Deposit account
and the remaining amount in FFD will continue to earn the same rate of interest,
as agreed upon in the contract. In such event, the amount from flexi fixed
deposit shall be transferred to his / her / their savings / current account by
following the LIFO (last in first out) method. However, the funds to
be transferred as a reverse sweep to Savings Bank/Current Account will also
meet the requirement of maintaining minimum balance.
LOANS
Banks in India with the way of development have become easy to apply in loan
market. The following loans are given by almost all the banks in the country:
Personal Loan
Car Loan or Auto Loan
Loan against Shares
Home Loan
Education Loan or Student Loan in Personal Loan, one can get a sanctioned

47

Loan amount between 25,000 to 10, 00,000 depending upon the profile of
person applying for the loan. SBI, ICICI, HDFC, HSBC are some of the leading
banks which deals in Personal Loan. Almost all the banks have jumped into the
market of car loan which is also sometimes termed as auto loan.
It is one of the fast moving financial products of banks. Car loan / auto loan are
sanctioned to the extent of 85%upon the ex-showroom price of the car with
some simple paper works and a small amount of processing fee. Loan against
shares is very easy to get because liquid guarantee is involved in it. Home loan
is the latest craze in the banking sector with the development of the
infrastructure. Now people are moving to township outside the city. More
number of townships is coming up to meet the demand of 'house
for all'. The RBI has also liberalized the interest rates of home loan in order
to match the repayment capability of even middle class people. Almost all banks
are dealing in home loan. Again SBI, ICICI, HDFC, HSBC are leading. The
educational loan, rather to be termed as student loan, is a good banking product
for the mass. Students with certain academic brilliance, studying at recognized
colleges/universities in India and abroad are generally given education loan /
student loan so as to meet the expenses on tuition fee/ maintenance cost/books
and other equipment.
MONEY TRANSFER
Beside lending and depositing money, banks also carry money from one corner
of the globe to another. This act of banks is known as transfer of money. This
activity is termed as remittance business. Banks generally issue Demand Drafts,
Banker's Cheques, Money Orders or other such instruments for transferring the
money. This is a type of Telegraphic Transfer or Tele Cash Orders. It has been
only a couple of years that banks have jumped into the money transfer
businesses in India. Economists say that the market of money transfer will
further grow at a cumulative 12.1% average growth rate.
48

FUTURE OF BANKING IN INDIA

A healthy banking system is essential for any economy striving to achieve good
growth and yet remain stable in an increasingly global business environment.
The Indian banking system has witnessed a series of reforms in the past, like
deregulation of interest rates, dilution of government stake in PSBs, and
increased participation of private sector banks. It has also undergone rapid
changes, reflecting a number of underlying developments. This trend has
created new competitive threats as well as new opportunities. This paper aims to
foresee major future banking trends, based on these past and current movements
in the market. Given the competitive market, banking will (and to a great extent
already has) become a process of choice and convenience. The future
of banking would be in terms of integration. This is already becoming a reality
with new-age banks such as YES Bank, and others too adopting a single-PIN.
Geography will no longer be an inhibitor. Technology will prove to be the
differentiator in the short-term but the dynamic environment will soon lead to
its saturation and what will ultimately be the key to success will be a better
relationship management.
OVERVIEW
If one were to say that the future of banking in India is bright, it would be a
gross understatement. With the growing competition and convergence of
services, the customers stand only to benefit more to say the least. At the same
time, emergence of a multitude of complex financial instruments is foreseen in
the near future (the trend is visible in the current scenario too) which is bound to
confuse the customer more than ever unless she spends hours (maybe days) to
understand the same. Hence, I see a growing trend towards the importance of
relationship managers. The success (or failure) of any bank would depend not
only on tapping the untapped customer base (from other departments of the
49

same bank, customers of related similar institutions or those of the competitors)

but also on the effectiveness in retaining the existing base. India has witness to a
sea change in the way banking is done in the past more than two decades. Since
1991,the Reserve Bank of India (RBI) took steps to reform the Indian banking
system at a measured pace so that growth could be achieved without exposure
to any macro-environment and systemic risks. Some of these initiatives were
deregulation of interest rates, dilution of the government stake in public sector
banks, guidelines being issued for risk management, asset classification, and
provisioning. Technology has made tremendous impact in banking.
Anywhere banking and Anytime banking have become a reality. The
financial sector now operates in a more competitive environment than before
and intermediates relatively large volume of international financial flows. In the
wake of greater financial deregulation and global financial integration, the
biggest challenge before the regulators is of avoiding instability in the financial
system.
RISK MANAGEMENT
The future of banking will undoubtedly rest on risk management dynamics.
Only those banks that have efficient risk management system will survive in the
market in the long run. The effective management of credit risk is a critical
component of comprehensive risk management essential for long-term success
of a banking institution. Although capital serves the purpose of meeting
unexpected losses, capital is not a substitute for inadequate decontrol or risk
management systems. Coming years will witness banks striving to create
sound internal control or risk management processes. The banks with proper
risk management systems would not only gain competitive advantage by way of
lower regulatory capital charge, but would also add value to the shareholders
and other stakeholders by properly pricing their services, adequate provisioning
and maintaining a robust financial structure.
50

The future belongs to bigger banks alone, as well as to those which have
minimized their risks considerably.
ACHIEVEMENTS
Oriental bank of commerce announced its Q1FY2010 results on 29 July 2009,
delivering 62% growth in net profits to Rs832 crore (Rs512cr), substantially
ahead of expectations on account of large treasury gains, apart from healthy
operating performance.
While the banks deposit growth was reasonably robust at 4.4%
sequentially and 26.5%, unlike the peers its growth in advances also
remained strong at 38%.
In spite of being at the forefront, the bank posted a healthy growth in
Net Interest Income (NII) of 29%.
Other Income surged 113%, driven by strong treasury gains of Rs355 crore
during the quarter in line with industry trends, even as Fee income was also
robust at 45%, on the back of strong balance sheet growth.
Operating expenses were higher than expected on account

of Rs150 crore of provisions for imminent wage hikes.

Gross and Net NPA ratios remained stable sequentially at 1.8% and 0.2%, with
the bank not adopting the guidelines of treating floating provisions as part of
tier 2 capital instead of adjusting against NPAs on express permission from the
RBI.

51

AWARDS AND DISTINCTIONS

Ranked among top 50 companies by the leading financial daily, Economic
Times.
Ranked as 323rd biggest bank in the world by Bankers Almanac, London.
Earned 9th place among India's Most Trusted top 50 service brands in
Economic Times.
Included in the top 1000 banks in the world according to The Banker, London.

COMPANYS MISSION AND VISION

Vision & Mission Statement
Our Vision
To be a sound all India, customer centric, efficient retail bank with
contemporary size, technology and human capital; endeavoring to enrich lives
across all sections of society; and committed to upholding the highest standards
of corporate governance.
Our Mission
To provide the finest banking services by upgrading human capital and
infusing advanced technology, thereby achieving total customer satisfaction;
and being reckoned as the Best Bank in the Industry on all efficiency
parameters.
To enhance shareholders wealth by ensuring sound growth of business and
make valuable contributions to national economic growth.
52

VALUES AND ETHICS

Bonding and Integrity
Ethical conduct
Periodic disclosure
Confidentiality and fair dealing
Compliance with rules and regulations

53

CHAPTER III
RESEARCH METHODOLOGY

54

WHAT IS RESEARCH?
"In the broadest sense of the word, the definition of research includes any
gathering of data, information and facts for the advancement of knowledge."
Steps in conducting research
Research is often conducted using the hourglass model structure of
research. The hourglass model starts with a broad spectrum for research,
focusing in on the required information through the method of the project (like
the neck of the hourglass), then expands the research in the form of discussion
and results. The major steps in conducting research are:

Identification of research problem

Literature review

Specifying the purpose of research

Determine specific research questions or hypotheses

Data collection

Analysing and interpreting the data

Reporting and evaluating research

Communicating the research findings and, possibly, recommendations

PRIMARY DATA
55

Data observed or collected directly from first-hand experience is known as

primary data. Primary data are those collected by the investigator
himself for the first time and thus they are original in character, they are
collected for a particular purpose. A well-structured questionnaire was
personally administrated to the selected sample to collect the primary
data.

SECONDARY DATA
A secondary data is that data that is required to conduct the study and can be
obtained from books, journals, magazines, records etc. Secondary data is data
taken by the researcher from secondary sources, internal or external. Secondary
data is collected from following sources: 1) Magazines and journals
2) Company websites.
3) Internet
4) Books

SCOPE OF THE STUDY

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

56

Sample size denotes the number of elements selected for the study. For the
present study, 100 respondents were selected at random. All the 100 respondents
were the customers of different branches of Oriental Bank of Commerce
SAMPLING METHOD
A sample is a representative part of the population. In sampling technique,
information is collected only from a representative part of the universe and the
conclusions are drawn on that basis for the entire universe. A convenience
sampling technique was used to collect data from the respondents.
METHOD OF DATA COLLECTION
To know the response, questionnaire method was used. It has been designed as a
primary research instrument. Questionnaires were distributed to respondents
and they were asked to answer the questions given in the questionnaire .The
questionnaires were used as an instrumentation technique, because it is
an important

method

of

data collection. The

success

of

the

questionnaire method in collecting the information depends largely

on proper drafting. So in the present study questions were arranged and
Interconnected logically. The

structured

questionnaire

will

reduce

both

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

TYPES OF DATA
Every decision poses unique needs for information, and relevant strategies can
be developed based on the information gathered through research. Research is
the systematic objective and exhaustive search for and study of facts relevant to
the problem Research design means the framework of study that leads to the
57

collection and analysis of data. It is a conceptual structure with in which

research is conducted. It facilitates smooth sailing of various research
operations to make the research as effective as possible.

CHAPTER III
ANALYSIS AND FINDINGS

58

Bank account
yes
no
total

Percentage
97%
3%
100%

Analysis & Interpretation

Q1 PERCENTAGE OF PEOPLE HAVING BANK ACCOUNT

Figure 3.1
Analysis: From the above table and graph it can be seen that only 3% of the people having
no bank account while the other 97% have theirs in different banks. This data is
presented in both the table and graphical presentation.
Interpretation:
59

So we can conclude most of the people have accounts in various banks for
having different reasons like , to have safety of money, to transact easily with
others etc.

Q2 Transactions of different banks in the market

BANKS
SBI
OBC
AXIS
ICICI
PNB
Others

PERCENTAGE
30
25
15
18
10
2

Figure 3.2
Analysis: From the former table and graphs we can see people have accounts like in SBI
30% , in OBC 25%,in PNB10%, in AXIS 15%,inICICI 18% and in other banks
there are only 2% accounts among all the respondents.
60

Interpretation:
It is concluded here that OBC have its popularity of having a large no. of
accounts in the studied area for its best service in all sectors.
Q3 SHARE OF DIFFERENT TYPES OF ACCOUNTS
SL. No.
1.
2.
3.
4.
5.
total

Nature of accounts
Savings A/Cs
Current A/Cs
Fixed deposits
loans
others

% of respondents
75%
9%
4%
7%
5%
100%

Figure 3.3
Analysis:
Above table shows that 75% respondents have Saving A/Cs, and 9% have
Current A/Cs and rest of the respondents have 16% share of other A/Cs in total
(which includes fixed deposits, loans, and other products)
Interpretation:
This means most of the respondents are having Saving A/Cs which means the
bank deposits are enriching as Saving A/Cs share is most.
61

Q4 TABLE SHOWING MOTIVE BEHIND SELECTING OBC

SL. NO.
1
2
3
4

ATTRIBUTE
Brand name
Customer service
Interest rate
others

PERCENTAGE
56
30
12
2

motive behind selecting obc

60
50
40
30

motive behind selecting

obc

20
10
0

Figure 3.4
Analysis:
This table show the strengths and weaknesses of the brand, and what are the
important criteria or factors on which decision-making is done. From this table
we can infer that consumers give more importance for Brand name, secondly
they prefer satisfaction, and then returns on investment.
Interpretation:
This purely shows that people are now looking forward for better customer
service in addition to the brand name in which they are investing and the returns
they are getting.
62

Q5 THE CUSTOMERS SATISFACTION WITH INTEREST RATE OF OBC

Satisfied
YES
NO

Percentage
82
18

Figure 3.5
Analysis:
The customers are satisfied largely on the interest rate of OBC compare to any
other banks i.e.82% which is elaborated in the above table and graphs.
Interpretation:
So we can conclude that the customers are satisfied with the interest rate of
OBC.

63

Q6 HOW THE CUSTOMERS SATISFIED WITH INTEREST RATES OF

BANKS

SL.NO.
1
2
3
4
5

NAME OF BANK
SBI
PNB
OBC
ICICI
OTHERS

PERCENTAGE
36
15
26
9
14

Figure 3.6
Analysis:
The above table shows that 36% of the respondents prefer OBC firstly.
Thereafter they prefer other banks like SBI, PNB etc. Likewise SBI-26%, PNB15%, ICICI-9% and other banks 14%.
Interpretation:
64

From these all it can be concluded that a major part of the customers are
satisfied with the interest rate of OBC.

Q7 CONSUMERS WILLINGNESS TO SHIFT THEIR A/C s TO OTHER BANK

SL.NO.

RESPONSES

PERCENTAGE

1.

Shift

2.

Doesnt Shift

92

Figure 3.7
Analysis:
From this table it can be noted that the majority of consumers (92%) doesnt
like to shift their A/Cs to other banks.
Interpretation:
The reason can be increasing customer satisfaction and quality services
offered by the bank.

65

Q8 SATISFACTION OF RESPONDENTS WITH SERVICES OFFERED BY

OBC BRANCH
SL.NO.
1.
2.

RESPONSES
Satisfied
Not satisfied

PERCENTAGE
89
11

Figure 3.8
Analysis:
From the above table it could be inferred that 89% of the consumers are
satisfied with the service and quality of products of their bank. Only 11% of
consumers are not satisfied.
Interpretation:
Most of the respondents are satisfied with the service offered by Oriental Bank
of Commerce Presently the bank offers varieties of services and the
customers are getting a good rate of return from their deposits. Customers
are getting good service from the bank.

66

SL.NO.
RATINGS
PERCENTAGE
1.
EXCELLENT
9
2.
VERY GOOD
11
3.
GOOD
70
4.
AVERAGE
6
5.
POOR
4
Q9 RATINGS OF THE SERVICES OFFERED BY THE BANK

Figure 3.9
Analysis:
From this table it could be inferred that 70% of the consumers have
rated service offered as good, 11% of them have rated them as very good,
and 09% of them have rated as excellent while only 4% have rated as poor,.
Interpretation:
Service offered by the bank is improving day by day. Returns consumers are
getting are also attractive. Majority of the customers rates good, very good and
excellent because of the customer service offered by the bank. Banks are
providing a good service to the customers due to increased competition in
the market. This may be the reason for more satisfaction.

67

PRODUCT
Savings A/c (SA)
Current A/c (CA)
Fixed deposit (FD)
Loan A/c (LA)
Insurance (INS)
TOTAL

PERCENTAGE
47%
23%
17%
8%
5%
100%

Q10 Which product of

OBC is beneficiary to
Customer?

Figure 3.10
Analysis: It is seen that more customer have savings account like 47% in OBC. Likewise
there are 17% current account , 23% fixed deposit ,8% loan and only 5%
insurance.
Interpretation:
So it is clear that there are more savings account in OBC as compare to
other accounts and services.

68

Findings and Inferences

1. Most of the respondents are having Saving A/Cs.
2. Most of the respondents are satisfied with the service offered by
Oriental Bank of Commerce.
3. Majority of the customers rates good, very good and excellent because of
the customer service offered by the bank
4. People are now looking forward for better customer service in addition to
the brand name in which they are investing and the returns they are
getting.
5. The reason can be increasing customer satisfaction and quality services
offered by the bank.
6. The customers are satisfied with the interest rate of OBC.

69

LIMITATIONS

70

LIMITATIONSOF THE STUDY

Although the study was carried out with extreme enthusiasm and careful
planning there are several limitations, which handicapped the research
1 . Time Constraints:
The time stipulated for the project to be completed is less and thus
there are chances that some information might have been left out, however
due care is taken to include all the relevant information needed.
2. Sample size:
Due to time constraints the sample size was relatively small and would definitel
y have been morerepresentative if I had collected information from more
respondents.
3. Accuracy:
It is difficult to know if all the respondents gave accurate information; some
respondents tend to give misleading information.4.It was difficult to find
respondents as they were busy in their schedule, and collection of data was very
difficult. Therefore, the study had to be carried out based on the availability of
respondents.

71

RECOMMENDATIONS
With regard to banking products and services, consumers respond at different
rates, dependingon the consumers characteristics. Hence OBC should try to
bring their new product and services to the attention of potential early adopters.
Due to the intense competition in the financial market, OBC should adopt
better strategies to attract more customers.
Return on investment company reputation and premium outflow are most
preferred attributes that are expected by the respondents. Hence greater
focus should be given to these attributes.
OBC should adopt effective promotional strategies to increase the
awareness level among the consumers.
OBC should ask for their consumer feedback to know whether the
consumers are really satisfied or dissatisfied with the service and product
of the bank. If they are dissatisfied, then the reasons for dissatisfaction
should be found out and should be corrected in future.
The OBC brand name has earned a lot of goodwill and enjoys high brand
equity. As there is intense competition, OBC should work hard to
maintain its position and offer better service and products to consumers.

72

 The bank should try to increase the Brand image through performance
and service then, only the customers will be satisfied.

Majority of the people find banking important in their life, so OBC

should employ the strategies to convert the want in to need which will
enrich their business

73

CONCLUSION

This is a project that is based on the study done over Oriental bank to
know its management and methods of doing banking work.
This study helped me to get an overview of various processes of OBC.
It made me aware about the various policies and schemes which the
company has adopted.

The project has helped me in studying satisfaction about product and

services offered to customers.

74

APPENDICES
Questionnaire

Customer Feedback Form

Name of Customer
.Address
..
A/C No......Age.SexContact
no..
1. Do you have any bank account?
Yes
No
2. If

yes, than in which bank you have done your transaction?

SBI
OBC
PNB
AXIS
ICICI
Others ____________

3. Which type of account you have?

SAVING A/C
CURRENT A/C
FIXED DEPOSIT A/C
4. Why you choose OBC?
Customer service
Brand name
interest
75

 others

5. Do you satisfied with the interest provided by your bank?

YES
NO
6. Which bank provided better interest rate?
SBI
PNB
OBC
ICICI
Other
7. Are you interested to sift the account to other bank?
Shift
Doesnt shift
8. Are you satisfied with the service provided by OBC?
Satisfied
Not satisfied
9. How you rate the services provided by OBC?
Excellent
Very good
Good
Average
Poor
10. Which product of OBC would you like?
SA
CA
LA
Insurance
Other

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BIBLIOGRAPHY

www.obcindia.co.in
wikipedia.org/wiki/Financial institution
ORIENTAL BANK MANUAL
http://www.investopedia.com
http://www.indiastat.com/banksandfinancialinstitutions
BROCHURES
Financial management by PANDEY I.M

Management accounting by GOEL D.K

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