Banking in India Originated in the First Decade of 18th Century

8/9/2019 Banking in India Originated in the First Decade of 18th Century

1/38

A Project Report On

To Study the Products &

Services (Accounts) of OrientalBank of Commerce

Submitted To:

HNBGU

In the partial fulfillment of therequirement for the Award of thedegree of Bachelors of Business

Administration

Submitted By :-

Ashish MainiParampreet Singh Chadha

External Guide Internal Guide Mr. Rajeev Aggarwal Mr. Praveen Singh

Mr. Mrs. Sonia

Mehndiratta Mr. Napal Singh

1


2/38

DECLARATION

2


3/38

CERTIFICATE

3


4/38

ACKNOWLEDGEMENT

4


5/38

INDEX

5


6/38

INTRODUCTION

6


7/38

Banking in India originated in the first decade of 18thcentury. The first banks were The General Bank of India,which started in 1786, and Bank of Hindustan, both of whichare now defunct. The oldest bank in existence in India is theState Bank of India, which originated in the "The Bank ofBengal" in Calcutta in June 1806. This was one of the threepresidency banks, the other two being the Bank of Bombayand the Bank of Madras. The presidency banks wereestablished under charters from the British East IndiaCompany. They merged in 1925 to form the Imperial Bank ofIndia, which, upon India's independence, became the StateBank of India. For many years the Presidency banks acted asquasi-central banks, as did their successors. The Reserve

Bank of India formally took on the responsibility of regulatingthe Indian banking sector from 1935. After India'sindependence in 1947, the Reserve Bank was nationalizedand given broader powers.

A couple of decades later, foreign banks such as CreditLyonnais started their Calcutta operations in the 1850s. Atthat point of time, Calcutta was the most active trading port,mainly due to the trade of the British Empire, and due to

which banking activity took roots there and prospered.

Currently (2007), banking in India is generally fairlymature in terms of supply, product range and reach-eventhough reach in rural India still remains a challenge for theprivate sector and foreign banks. In terms of quality ofassets and capital adequacy, Indian banks are considered tohave clean, strong and transparent balance sheets relativeto other banks in comparable economies in its region. TheReserve Bank of India is an autonomous body, with minimal

pressure from the government. The stated policy of the Bankon the Indian Rupee is to manage volatility but without anyfixed exchange rate-and this has mostly been true.

With the growth in the Indian economy expected to bestrong for quite some time-especially in its services sector-the demand for banking services, especially retail banking,

7
http://en.wikipedia.org/wiki/State_Bank_of_Indiahttp://en.wikipedia.org/wiki/Calcuttahttp://en.wikipedia.org/wiki/Bank_of_Bombayhttp://en.wikipedia.org/wiki/Bank_of_Madrashttp://en.wikipedia.org/wiki/British_East_India_Companyhttp://en.wikipedia.org/wiki/British_East_India_Companyhttp://en.wikipedia.org/wiki/Imperial_Bank_of_Indiahttp://en.wikipedia.org/wiki/Imperial_Bank_of_Indiahttp://en.wikipedia.org/wiki/Indian_independence_movementhttp://en.wikipedia.org/wiki/State_Bank_of_Indiahttp://en.wikipedia.org/wiki/State_Bank_of_Indiahttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Credit_Lyonnaishttp://en.wikipedia.org/wiki/Credit_Lyonnaishttp://en.wikipedia.org/wiki/Kolkatahttp://en.wikipedia.org/wiki/British_Rajhttp://en.wikipedia.org/wiki/Retail_bankinghttp://en.wikipedia.org/wiki/State_Bank_of_Indiahttp://en.wikipedia.org/wiki/Calcuttahttp://en.wikipedia.org/wiki/Bank_of_Bombayhttp://en.wikipedia.org/wiki/Bank_of_Madrashttp://en.wikipedia.org/wiki/British_East_India_Companyhttp://en.wikipedia.org/wiki/British_East_India_Companyhttp://en.wikipedia.org/wiki/Imperial_Bank_of_Indiahttp://en.wikipedia.org/wiki/Imperial_Bank_of_Indiahttp://en.wikipedia.org/wiki/Indian_independence_movementhttp://en.wikipedia.org/wiki/State_Bank_of_Indiahttp://en.wikipedia.org/wiki/State_Bank_of_Indiahttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Credit_Lyonnaishttp://en.wikipedia.org/wiki/Credit_Lyonnaishttp://en.wikipedia.org/wiki/Kolkatahttp://en.wikipedia.org/wiki/British_Rajhttp://en.wikipedia.org/wiki/Retail_banking


8/38

mortgages and investment services are expected to bestrong. One may also expect M&As, takeovers, and assetsales.

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

Currently, India has 88 scheduled commercial banks(SCBs) - 28 public sector banks (that is with the Government

of India holding a stake), 29 private banks (these do nothave government stake; they may be publicly listed andtraded on stock exchanges) and 31 foreign banks. They havea combined network of over 53,000 branches and 17,000ATMs. According to a report by ICRA Limited, a ratingagency, the public sector banks hold over 75 percent of totalassets of the banking industry, with the private and foreignbanks holding 18.2% and 6.5% respectively.

8
http://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Automated_teller_machinehttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Automated_teller_machine


9/38

COMPANY

PROFILE

9


10/38

The National Institute of Bank Management (NIBM), ratedOBC Bank as "Customer Friendly" Bank.

Oriental Bank of Commerce Fact File

Amongst the strongest banks in India High Capital Adequacy Ratio Consistent Profit-making Bank One of the Lowest Spreads in Banking Industry Total Working crosses the 135700 crore mark CRISIL

Ratings The Highest Productivity per Employee NPA - One of the lowest

OBC India Grameen Project

OBC India is implementing Grameen Projects atRudrapur in Dehradun District, UTTARAKHAND andHanumangarh in Rajasthan. The Grameen Project of OBCIndia venture aims to alleviate poverty alongwith to identifythe reasons responsible for the future or success.

OBC has formulated the pattern of BangladeshGrameen Bank with a unique feature of disbursing smallloans ranging from Rs. 75 onwards. The Bank is providingtraining to rural people in using locally available rawmaterial to produce pickles, jams etc. This in returnincreases self-employment and adds in increasing theincome levels.

OBC India is also working upon The ComprehensiveVillage Development Programme. At present it is coveringnumber of villages in Punjab, Haryana, Rajasthan. Under thisprogramme, Oriental Bank of Commerce is focussing uponcomprehensive and integrated package to rurals.

Profitability of OBC

10


11/38

The gross profit OBC Bank stood at Rs. 1533 Crore asagainst Rs. 1163 Crore last year. After providing forcontingencies and more than required provisions againstnon performing assets, the Bank has earned a handsome netprofit of Rs. 686 Crore as against Rs. 457 Crore last year,thereby registering a growth of 50 % mainly on account ofreduction in cost of deposits, strict control on expenses,efficient cash management, treasury income and largerecoveries in N P A accounts.

Dividend of OBC

The Oriental Bank of Commerce has provided forpayment of 30% final dividend to the shareholders inaddition to 20% interim dividend already paid during thefinancial year 2003-04 making total dividend 50%.

Retail Portfolio of OBC

The retail loans of OBC have increased to Rs. 4318

Crores as against Rs. 2779 Crores last year, with a growth of55.4%. These assets constitute 20.9 % of total loan assets.Oriental Bank of Commerce Housing loans account for 80%of retail portfolio.

OBC Shareholder's Equity

The Net worth of Oriental Bank of Commerce has

improved by Rs.567.46 Crore and reached a level of Rs.2676.79 Crore against Rs. 2109.33 Crore last year.

The OBC Business

11


12/38

The total business of Oriental Bank of Commerce hasgone up to Rs. 56286 Crore from Rs. 46333 Crore last yearthus registering a growth of 21.5%, due to high growth indeposits as well as advances. The deposit growth of OBC has

been to the extent of 19.7 %(previous year 4.63%) while inadvances the growth is 25.5 % (previous year 10.7%).

12


13/38

Technology Implementation

Oriental Bank of Commerce of India has implemented

Centralized Banking Solution in 21 branches till date. It willgive freedom of anywhere and anytime banking tocustomers. The business captured has resulted in 97% livecomputerized environment as against 93% last year. Morethan 350 branches have been networked.

13


14/38

HISTORY

14


15/38

Established in Lahore on 19th February 1943, OrientalBank of Commerce made a modest beginning under itsFounding Father, Late Rai Bahadur Lala Sohan Lal, the firstChairman of the Bank.

Within four years of coming into existence, the Bankhad to face the holocaust of partition. Branches in the newlyformed Pakistan had to be closed down and the RegisteredOffice had to be shifted from Lahore to Amritsar. Late lalaKaram Chand Thapar, the then Chairman of the Bank, in aunique gesture honoured the commitments made to thedepositors from Pakistan and paid every rupee to itsdeparting customers. The foundation of customer servicethus laid has ever since remained Oriental Bank's prime

philosophy and has been nurtured well as a legacy by all itssuccessors, year after year.Projects - A Handful of Success

The Bank has launched yet another people'sparticipation in the planning process at grass root levelessentially to tackle the maladies of poverty. The GrameenProjects venture aims to alleviate poverty plus identify thereasons responsible for the failure or success.

OBC is already implementing a GRAMEEN PROJECT inDehradun District (UK) and Hanumangarh District(Raiasthan). Formulated on the pattern of the BangladeshGrameen Bank, the Scheme has a unique feature ofdisbursing small loans ranging from Rs. 75 (US $2) onwards.

The beneficiaries of the Grameen Project are mostlywomen.The Bank is engaged in providing training to ruralfolk in using locally available raw material to producepickles, jams etc. This has provided self-employment andaugmented income levels thus reforming lives of rural folk

and encouraging cottage industries in rural areas.OBC launched yet another unique scheme christened

'The Comprehensive Village Development Programme' onthe auspicious day of Baisakhi, the 13th of April 1997 atthree villages in Punjab namely Rurki Kalan (Distt. Sangrur),Raje Majra (Distt. Ropar) and Khaira Majha (Distt. Jalandhar)

15


16/38

and two villages in Haryana, namely Khunga (Distt. Jind) andNarwal (Distt. Kaithal). The pilot launch was a great success.Emboldened by the success, Bank extended the programmeto more villages. At present, it covers 15 villages; 10 in

Punjab, 4 in Haryana and 1 in Rajasthan. The programmefocuses on providing a comprehensive and integratedpackage providing rural finance to the villagers with VillageDevelopment as its focus, thus contributing towardsinfrastructural development and agumentation of income foreach farmer of the village. The Bank has implemented 14point action plan for strengthening of credit delivery towomen and has designated 5 branches as specializedbranches for women entrepreneurs.

16


17/38

VISION &MISSION

STATEMENT

17


18/38

Our Vision

To be a sound all India, customer centric, efficient retailbank with contemporary size, technology and human capital;endeavouring to enrich lives across all sections of society;and committed to upholding the highest standards ofcorporate governance.

Our Mission

To provide the finest banking services by upgradinghuman capital and infusing advanced technology, therebyachieving total customer satisfaction; and being reckoned asthe Best Bank in the Industry on all efficiency parameters.

To enhance shareholders wealth by ensuring soundgrowth of business and make valuable contributions tonational economic growth.

18


19/38

OBCPRODUCTS &

SERVICES

19


20/38

OBC CASA DEPOSIT SCHEME (SalientFeatures)

OBC has launched a special savings account scheme

namely, 'OBC CASA Deposit Scheme' with effect from May01, 2007, detailed hereunder:

1. Minimum Balance: Rs.500/-2. Free ATM card and Debit Card3. Free accidental insurance up to Rs.50,000/- (For 1st

year only)4. The above noted scheme shall be applicable only for

the new accounts opened.5. For free accidental insurance of Rs.50,000 , the

insurance premium of around Rs.17 for the first yearshall be borne by the Bank. The account holder shallbear the insurance premium, thereafter, for subsequentyears.

6. Under the Scheme the prospective customers includingsenior citizens and pensioners shall be required tomaintain minimum balance of Rs 500. In case of nonmaintenance of minimum balance Rs 50/- shall becharged.

7. For availing cheque book facility, minimum balancerequirement shall be Rs.500 (for rural/semi-urban) &Rs.1,000 (for urban/metros).

8. The scheme shall be reviewed after 12 months.

ORIENTAL BANK PRAGATI ACCOUNTSCHEME

Date of Commencement 14.08.2007

Eligibility: - ALL NEW CURRENT ACCOUNTS1. Minimum Amount of Deposit and balance to bemaintained

a) Urban & Metropolitan Rs.5000/-b) Rural & Semi-urban Rs.1000/-

2. Validity of Scheme For a limited period only

20


21/38

3. Add on Facilities 1. One Free ATM/ Debit Card for everyAccount. The ATM/Debit Card may also be permitted tothe partners of the firm/Directors of the Company whoare authorized to operate the Account.

4.

Free Personal Accident (Death) insurance cover of Rs. 1Lac (1st year)5. Waiver of 100% ABB Charges during the 1st year.6. Free internet / Tele banking7. Waiver of Demat Account Maintenance8. Charges (for One Year) For Accounts maintaining9. Average daily Current Account Balance of Rs. 5 Lacs or

more10. Additional Benefits

a) Free Draft issuance Facility

b) Free RTGS Facility upto Rs.5 Lacs.

OBC JEEVAN SARATHI YOJANA

Purpose: - To empower and encourage physically challengedpeople to open accounts and avail concessional bankingservices.

Eligibility: - Physically challenged Persons like those sufferingfrom, locomotors disability, Blindness (including low vision),hearing Impairment.

Competent Authority Certifying Disability - CMO of any Govt.hospital

Features/Benefits of the Scheme:

Savings Bank account with Zero balance.

No minimum balance charges Collection of Instruments At Par

Issuance of DDs/POs At Par (excepting against Cash)

No Standing Instruction Charges

Free Internet Banking

Free Proton ATM Card

21


22/38

Free ABB Cash transactions up to Rs 50000/-

No Stop payment charges

Free Accidental Insurance of Rs One Lac (for first year)

Nomination Facility available

TAX SAVING, TERM DEPOSIT SCHEME

1. Name of Scheme:Oriental Bank Tax Saving. Term Deposit Scheme, (u/s 80C ofIncome Tax Act 1961)

2. Who can deposit under the scheme:An individual or a Hindu Undivided Family (HUF) having

Permanent Account Number,

3. Type of deposit:Fixed Deposit or Cumulative Deposit

I. a) Single holder type deposit-The single holder type deposit receipt shall be issued to anindividual for himself or in the capacity of the Karta of theHindu Undivided Family.

b) Joint holder type deposit-The joint holder type deposit receipt may be issued jointly totwo adults or jointly to an adult and a minor, and payable toeither of the holder or the survivor. Provided, that in thecase of joint holder type deposit, the deduction from incomeunder section 80C of the Income Tax Act shall be availableonly to the first holder of the deposit.

II. a) Fixed Deposit-

The fixed deposit can be issued with monthly or quarterlyinterest payment option.

b) Cumulative Deposit-Interest is compounded at quarterly rests and payable withprincipal on maturity.

22


23/38

4. Amount of Investment:The depositor can invest any amount not exceeding Rs. 1 lac(one lac rupees) in a financial year, minimum being Rs. 100/-

and in multiple thereof.

5. Period of deposit:The period of deposit shall be not less than five years.

6. Premature payment:The lock in period under the scheme shall be five years; assuch the term deposit can not be encashed before the expiryof five years from the date of deposit.

7. Rate of interest: 10.00% for other than senior citizen &10.50% for senior citizens8. Renewal of term depositRenewal of term deposit in this scheme on maturity shall beas notified by the Government and in force from time totime. However, renewal will be allowed in general termdeposit scheme i.e. by transferring the amount from thisscheme to the general term deposit scheme but without

Income Tax exemption.

11. Replacement of lost or destroyed term deposit receipt:If a term deposit receipt is lost, stolen, destroyed, mutilatedor defaced, the person entitled thereto may apply to theissuing branch for the issue of a duplicate receipt.

BASIC BANKING ACCOUNT

Oriental Bank of Commerce launched the Basic Banking'No-Frills' Account Scheme as a Corporate SocialResponsibility (CSR) of the Bank intended to make bankingaccessible to vast sections of the population, with the primeobjectives as under:

23


24/38

The Scheme came into effect from 16.01.2006, withSalient Features, as under:

A. Eligibility: Indian National Citizens, unable to afford,

without financial hardship, the cost of maintaining bankaccount, Individuals who intend to keep balances notexceeding Rs. 50,000/- in all their accounts taken togetherand total credits not exceeding Rs. 2 lakh in a year.

B. Opening of Account: with Simplified KYC Procedure basedon satisfactory Introduction by another Account Holder, onwhom KYC has been done, photograph of the customer, whointends to open the account, and his address need to beCertified by the Introducer. Account can be opened in

individual capacity or in joint names or with minors.

C. Features: Nominal Initial Deposit of Rs. 10/- for opening ofthe AccountNo Minimum Balance Requirement / No Minimum BalanceChargesNo Standing Instruction Charges for Transfer of Funds withinsame BranchNo Incidental Charges on Account becoming Inoperative

6 Withdrawals Free Per Month (Additional Withdrawals withCharges of Rs. 5/- Per Withdrawal)Nomination FacilityOne Cheque Book of 25 Leaves, Free of Cost, during aCalendar Year. Cheques shall be Collected in these Accounts,as in case of other Savings Accounts. However, ATM Cardfacility not available to SB Basic Account holders.Other Services can be availed on Charges prescribed by thebank.

24


25/38

FLEXI FIXED DEPOSIT SCHEME IN THEBANK

We are pleased to inform that Flexi Deposit Scheme for

the benefit of our depositor customers has been approvedby the Board on 18th October 2006. This scheme shall comeinto operation w.e.f. 1st November 2006. The features of thescheme are as under:

PRODUCT & BENEFIT:Flexi Fixed Deposit products offer liquidity in the shape

of Savings / Current deposit funds as well as higher returnsas are available on fixed deposit funds. Moreover, there is

also an element of flexibility as the depositor can meet fundsrequirement without loosing the interest, since transfer offunds to Savings / Current account is made available as anin-built arrangement whenever required by the depositor. Innutshell, the scheme enables a depositor to get returns onhis/her funds as a fixed deposit but at the same timeretaining the character of liquidity which is available inSavings Banks/Current Account.

NRI CUSTOMERS

Facilities is proud of its association with NRIs and takesspecial pride in serving them through various tailor-madeproducts designed to suit all requirements of NRIs.

Oriental Bank of Commerce has 1320 branches &Extension Counters and 569 onsite / offsite ATMs spread allacross India. All the service outlets of OBC are fullycomputerized with more than 1000 branches connected

through Centralised Banking Solution, Internet Banking andPhone Banking. So the customer of an OBC Branch is aCUSTOMER OF ALL CBS BRANCHES since we are offering AnyBranch Banking (ABB) & Multicity Cheque Book facility toCBS Customers. More than six lac Proton Visa Debit Cardholders of the Bank have access to over 8000 MITR and NFSATMs for host of services like cash deposit / withdrawal,

25


26/38

Mobile Top up, Mini Statement, balance enquiries etc. and toeffect card payment for shopping in India and abroadthrough over 50,000 Point of Sale (POS) locations.

RTGS'Real Time Gross Settlement System (RTGS)', is a

modern, roubust, integrated payment and settlementsystem. RTGS is a system whereby the Banks and FinancialInstitutions maintaining accounts with RBI can transfer fundsto one another on an immediate, final and irrevocable basisduring business hours.

The Facility can be used for Fund Transfer to other

Bank on behalf of the customers. This is R41 transaction andfunds are transferred by debiting customers account to thedestination account of other participating bank directlywithout any manual intervention. For this purpose correctdestination account number and IFSC code of the destinationbank / branch is required from the customer availing thisfacility.

NATIONAL ELECTRONIC FUNDS TRANSFER

(NEFT)

Reserve Bank of India has introduced a system called'The Reserve Bank of India National Electronic Funds

Transfer System' which may be referred to as 'NEFT System',for participating banks and institutions with the requiredsystem of computer and communication network throughwhich funds transfer operation would take place. Our bank isone of the participants in the above system. Presently, our

all the 1402 Service Outlets are enabled to offer NEFTfacilities to their customers.

Objects

The objects of the NEFT System are:

26


27/38

To establish an Electronic Funds Transfer System tofacilitate an efficient, Secure, economical, reliable andexpeditious system of funds transfer and Clearing in thebanking sector throughout India, and

To relieve the stress on the existing paper based fundstransfer and clearing system.

Online Tax Accounting System (OLTAS)

The On-line tax accounting system (OLTAS) for collection,accounting and reporting of direct taxes (List of Direct

Taxes) is operational w.e.f 01.06.2004 in 144 authorizedbranches all over India.

For every tax payment made by the taxpayer there shouldbe a challan in the prescribed format. The challan format is asingle copy challan with the main challan at the top and thetaxpayers counterfoil at the bottom of the challan. Ataxpayer can deposit tax by:

i. Cash orii. Cheque on same branch oriii.

Cheque / draft drawn on the same bank or anotherbank / branch at the same center where the payment ismade or

iv. Payment by outstation cheques / drafts can also bemade at any authorized bank.

CASH MANAGEMENT SERVICES FORCORPORATES

Cash Management is logistics of moving money. Tradetransaction result in movement of money across locations &across parties. It serves as the means to keep anorganization functioning by making the best use of cash orliquid resources of the organization. We provide time & placevalue for money through CMS.

27


28/38

Cash Management is about managing:

Movement of money.

Movement of paper/instructions/cheques

Information on movement of paper/money

To Reduce:-

Excess funds requirements, overdrafts, borrowings

Wastage of idle float funds

Unevenness in information, process & clearingbottlenecks.

MERCHANT BANKING DIVISION

Oriental Bank of Commerce is registered with Securitiesand Exchange Board of India, as Category - 1 MerchantBanker since March 1, 1993. The Merchant Banking Activitiesare undertaken by its Merchant Banking Division housed in aseparate premise at F-14, IVth Floor, Competent House,Connaught Place, New Delhi. The Merchant Banking Divisionis headed by a Top Executive of the rank of General Managerwith a dedicated team of officials having sufficient exposure

and experience in this line. The Bank offers complete rangeof activities of category - 1 Merchant Banker as under:

Managing of Public Issue of equity and debt.

Handling Dividend/ Interest warrant issues ofCorporates.

Acting as Escrow Collecting Bank of Public Issues.

Monitoring Agency work as per SEBI Guidelines.

Advisory services for projects.

Private placement of securities. Syndication of Rupee Term Loan.

Corporate Advisory Services relating to SecuritiesMarket e.g. Takeovers, Acquisitions, Disinvestments.

CURRENT ACCOUNT

28


29/38

1. Current Accounts can be opened by individuals,partnership firms, private and public limited companies,HUFs/specified associates, societies, trusts, etc.

2. As required by law, while opening this account we

will adhere to the Know Your Customer (KYC) Norms,satisfy ourselves about the identity, includingverification of address, of a person/s seeking to open anaccount, to assist in protecting the prospectivecustomer/s, members of the public and ourselvesagainst fraud and other misuses of banking system.

3. The Bank is required to obtain two recentphotographs of the person/s opening/operating theaccount, as per RBI directives.

4. The Bank is required to obtain Permanent AccountNumber (PAN) or alternatively obtain declaration inForm No. 60 or 61 as per the Income Tax Act (videSection 139 A) from the person/s opening the account(i.e. including partners of Registered/Unregisteredpartnership as also Registered/Incorporated bodies/

companies).

5. The Bank will provide to the prospective customersdetails of the documents required for identification andaddress verification of the person/s opening theaccount. Documents normally accepted are the currentgas/telephone/electricity bill or voter's identity card ordriving licence or passport, etc.

6. Minimum balance as stipulated from time to time willbe required to be maintained

7. No interest is paid on credit balances kept in currentaccount.

8. Service charges are levied for : - Ledger folio used - Cheque books issued - Non-maintenance of minimum balance - Return of cheques, etc.

9. For opening special types of current accounts like forExecutors, Administrators, Trustees, Liquidators etc.,

29


30/38

the Branch Manager may be contacted who will help inopening these types of accounts.

30


31/38

Research

Methodology

31


32/38


33/38

Data Analysis & Interpretation

Findings

CAPITAL & LIABILITIESASSETSSchedule As on As on

TOTALTOTAL90705,32,4390705,32,43123456

789101112250,53,975525,36,3377856,69,551839,83,915232,88,677322,25,432892,48,87

23950,68,1754565,83,25387,46,031586,60,6819516,86,40INCOMEEXPENDITURESchedule

TOTAL 7454,83,98

33


34/38

131415166838,18,33616,65,65

5156,17,311079,63,09Capital

Reserves & Surplus

Deposits

Borrowings

Other Liabilities And Provisions

Cash & Balances With Reserve

Bank Of India

Balances With Banks And Money

At Call & Short Notice

Investments

Advances

Fixed AssetsOther Assets

Contingent Liabilities

Interest Earned

Other Income

Interest Expended

Operating Expenses

Notes on Accounts 18

Schedules 1 to 18 form an integral Part of the Accounts

250,53,975349,77,4763995,96,65

622,61,823717,37,525336,08,722173,12,4319808,36,0144138,46,55382,68,392097,55,3314265,54,2973936,27,4373936,27,435164,90,03603,25,76

3473,58,31997,88,555768,15,79Transfer to Statutory Reserves 89,00,00 146,00,00

Transfer to Revenue & Other Reserves 111,36,13 284,00,00

Transfer to Staff Welfare Fund 15,00,00 15,00,00117,75,37 67,64,5720,01,22 18,52,40Balance Carried over to Balance Sheet 50,70

34


35/38

Provisions and Contingencies 378,09,82 469,87,56

Bills for Collection 2800,47,26

31/03/2008 31/03/200731/03/2008 31/03/200731ST MARCH, 2008 PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31STMARCH, 2008

(Rs. in Thousands)(Current Year) (Previous Year)

(Current Year) (Previous Year)NET PROFIT FOR THE YEAR 353,21,58TOTAL 353,63,42TOTAL 6613,90,22TOTALAPPROPRIATIONSProfit brought forward 41,84 88,23IIIIV

Year ended Year endedORIENTAL BANK OF COMMERCE

HEAD OFFICE : NEW DELHI--(S K NEWLAY) (C.K.SABHARWAL) (DR ABHA CHATURVEDI) (V. K. SHARMA)

( D I R E C T O R S )(C M KHURANA)

GENERAL MANAGER (ACCOUNTS )

(SUBASH MAHAJAN)

ASSTT. GENERAL MANAGER (ACCOUNTS)

In terms of our report of even dateFOR N.SARKAR & CO.

CHARTERED ACCOUNTANTS

FOR HINGORANI M & CO.


FOR UMAMAHESWARA RAO & CO


(SANJAY KUMAR NARANG)

M NO 090943

PARTNER

(G. MUKHOPADHYAY)

M NO: 010534

PARTNER

(L SHYAMA PRASAD)

M NO: 028224

PARTNER

Place : NEW DELHI

BALANCE SHEET AS ONDated : 23rd April, 2008

IIITransfer to Investment Fluctuation Reserve -- --

(P.BOLINA) (UMESH KUMAR KHAITAN) (KAMAL BHUSHAN)Significant Accounting Policies 17(ALLEN C.A.PEREIRA)

EXECUTIVE DIRECTOR

Profit before extra-ordinary items 840,93,764941,34,42Amalgamation Adjustment Write off -487,72,18 -246,00,00

Earning Per Share

V.

35


36/38

Basic & Diluted (In Rs.) 14.10 23.18

Proposed Dividend

Tax On DividendFOR SURESH CHANDRA & ASSOCIATES


(MADHUR GUPTA)

M NO: 090205

PARTNER

Transfer to Capital Reserves -- --(ALOK K. MISRA)

CHAIRMAN & MANAGING DIRECTOR

580,81,37581,69,60581,69,6041,842992,63,20FOR P B VIJAYARAGHAVAN & CO


(P B SANTHANAKRISHNAN)

M NO: 020309

PARTNER

FOR FARUQUI & COMPANYCHARTERED ACCOUNTANTS

(S M Y QURESHI)

M NO: 081750

PARTNER

(V VIJAY SAI REDDY) (VIJAY JAGIRDAR) (Dr R S MAHARSHI)

Interim Dividend 50,10,79826,81,37353,63,42

COMMON PRACTICES FOLLOWED BY ALL OBC BRANCHES

1. Display business hours.2. Render courteous services.3. Attend to all customers present in the banking hall at theclose of business hours.4. Provide separate 'May I help you' desk at large branches.

5. Offer nomination facility to all deposit accounts (i.e.account opened in individual capacity) and all safe depositlocker hirers (i.e. individual hirers).6. Display interest rates for various deposit schemes fromtime to time.7. Notify change in interest rates on advances as well asService Charges.

36


37/38

8. Provide details of various deposit schemes/services of theBank.9. Issue Demand Drafts, Pay Orders, etc.10. Display Time - Norms for various banking transactions.

11. Pay interest for delayed credit of outstation cheques, asper the Collection Policy of the Bank.12. Accord immediate credit in respect of outstation andlocal cheques upto a specified limit subject to certainconditions, as per the Collection Policy of the Bank.13. Provide complaint/suggestion box in the branchpremises.14. Display address of Regional and Head Offices as well asNodal Officer dealing with customer grievances/ complaints.

COMMON AREAS OF CUSTOMER-BANKER RELATIONSHIPSAVINGS BANK ACCOUNT1. These accounts are designed to help the individuals(personal customers) to inculcate habit of saving money andto meet their future requirement of money. The amounts canbe deposited/withdrawn from these accounts by way ofCheques/withdrawal slips. It helps the customers to keepminimum cash at home besides earning interest.2. Savings Bank accounts are very popular. These accounts

can be opened by eligible person/s and certainorganisation/agencies (as approved by the Reserve Bank ofIndia (RBI).3. As required by law, while opening this account we willadhere to the Know Your Customer (KYC) Norms, satisfyourselves about the identity, including verification ofaddress, of a person/s seeking to open an account, to assistin protecting the prospective customer/s, members of thepublic and ourselves against fraud and other misuses ofbanking system.4. The Bank is required to obtain two recent photographs ofthe person/s opening the account, as per RBI Directives.5. The Bank is required to obtain Permanent AccountNumber (PAN) or alternatively obtain declaration in Form No.60 or 61 as per the Income Tax Act (vide Section 139 A) fromthe person/s opening the account.

37


38/38

6. The Bank will provide to the prospective customers detailsof the documents required for identification and addressverification of the person/s opening the account. Documentsnormally accepted are the current gas/telephone/electricity

bill or voter's identity card or driving licence or passport, etc.7. The account holder is required to maintain certainminimum balance in the account, as specified by the Bankfrom time to time, depending on, whether account holderwants to avail the cheque book facility or not. Interest at3.5% p.a. is presently paid on halfyearly basis (as on 30th June and 31st Dec) depending onminimum balance between the 10th day and last day of themonths, provided it works out to minimum Re. 1/-. Prevailingminimum balance and service charges shall be informed at

the time of accountopening and given in the Pass Book.8. Cheques, dividend warrants drawn in the name of accountholder/s will only be collected through this account. FinancialInstruments endorsed in favour of the account holder/s willnot be collected through savings bank account.