A

PROJECT REPORT

ON

“ANALYSIS OF SERVICES OF PUNJAB & SIND

BANK”

Submitted in the partial fulfillment of the requirements for the

award of the Degree Of

Bachelor of Business Administration

(Banking and Insurance)

TO

GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY, DELHI

GUIDE: SUBMITTED BY:

BLS INSTITUTE OF TECHNIOLOGY MANAGEMENT

(Affiliated to Guru Gobind Singh Indraprastha University)Delhi-Rohtak Road, NH-10, Jakhoda,Bahadurgarh (Haryana)Ph- 01276-241922, 241822, 241122E- mail:blsitm@gmail.com

BATCH (2008-2011)

DECLARATION

I Mr. , Roll Nocertifies that the Project Report (Paper Code BBA .......) entitled “ANALYSIS OF SERVICES OF PUNJAB & SIND BANK” is done by me and it is an authentic work carried out by me. To the best of my knowledge and belief, the material embodied in this Report has not been submitted earlier for the award of any Degree or Diploma by any University or Institution.

Signature of the StudentDate:

CERTIFICATE

Certified that the Project Report (Paper Code BBA – Code No.) entitled “ANALYSIS OF SERVICES OF PUNJAB & SIND BANK” done by Mr. /Ms., Roll No. has been completed under my guidance and supervision.

Signature of the Guide

Date: Name of the Guide:

Designation:

Countersigned

Director

ACKNOWLEDGEMENT

I take this opportunity to express my deep sense of gratitude that I

got a great chance to study within such an esteemed institute. The

amount of exposure and support, which I have been received during

my study here, has been simply outstanding. A special word of

thanks to Ms. SAVITA MAM, (faculty) (BLSITM) for giving me an

opportunity to work under her guidance. I am deeply indebted to

her, under whose guidance and supervision I was able to complete

my project report. I express my special thanks to the entire faculty

for their support and spending time for necessary information

gathering data collection for the study. I am grateful to them, for

giving me this opportunity to pursue my graduation. A special word

of thanks to Ms. SAVITA my project guide, for her continuous

support during the tenure of the project.

CONTENTS

S No Topic Page No

1 Certificate (s)

2 Acknowledgements

3 List of Tables

4 List of Figures

5 List of Symbols

6 List of Abbreviations

7 Chapter-1: General Introduction (Industrial Background)

8 Chapter-2: Introduction to the Problem

9 2.1 Statement of the Problem

10 2.2 Purpose of the Study

11 2.3 Objectives of the Study

12 2.4 Hypothesis

13 2.5 Scope of the Study

14 Chapter 3: A Brief Description of the Organization Profiles

15 Chapter 4: Theoretical Perspectives

16 Chapter 5: Methodology

17 5.1 Research Approach (Design)

18 5.2 Data Collection Methods/Sources

19 5.3 Research Instruments

20 5.4 Sampling Plan

21 5.5 Field Work

22 5.6 Analysis – Statistical Tool

23 Chapter 6: Data Preparation

24 6.1 Data Analysis

25 6.2 Hypothesis Testing

26 Chapter 7: Findings

27 Chapter 8: Limitations

28 Chapter 9: Conclusions and Recommendations

Appendices and Annexures

List of References

Introduction

HISTORY

It was in the year 1908, when a humble idea to uplift the poorest of poor of the land culminated in the birth of Punjab & Sind Bank with the far-sighted vision of luminaries like Bhai Vir Singh, Sir Sunder Singh Majitha and Sardar Tarlochan Singh. They enjoyed the highest respect with the people of Punjab.

The bank was founded on the principle of social commitment to help the weaker section of the society in their economic endeavours to raise their standard of life.

Decades have gone by, even today Punjab & Sind Bank stands committed to honor the social commitments of the founding fathers.

VISION & MISSION

Corporate Vision

We envision to emerge as a strong vibrant Bank through the implementation of effective Risk Management and Internal Control Systems through syncronization of the human, financial and technological resources.

Corporate Mission

To put in place the effective Risk Management and Internal Control Systems. To adopt and operationalise high-level technology standards. To strive to achieve excellence in Customer Service. To achieve the highest standards of transparency and accountability in the conduct of banking business. To adopt professional approach in effectively managing financial as well as non-financial risks. To maximize profitability and profits of the Bank with due compliance of prudential guidelines. To maximize competitive risk adjusted return on capital, through planned reduction in the average cost of funds, increased yield on advances and investments besides reduction in cost of operations.

MANAGEMENT

SARDAR R.P. SINGH, I.A.S SARDAR G.S.MATTACHAIRMAN & MANAGING DIRECTOR EXECUTIVE DIRECTOR

   

 

DIRECTORS

SHRI R. SADANANDAM (RBI NOMINEE DIRECTOR)

SARDAR AVTAR SINGH MANN (Officer's Director)

SARDAR MOHAN SINGH SEKHON (Workman Employee Director)

MAJOR MISS KRISHNA MOHINI

SHRI HARCHARAN SINGH JOSH

SHRI UMESH KUMAR SHARMA

NON- OFFICIAL DIRECTORS

SHRI K.K. SHARMA

MRS. KAMAL MANN

BRANCH NETWORK

The corporate office of the bank is situated at Rajendra Place, New Delhi with 19 zonal offices (as on 30.09.2004) scattered in various states controlling the branches.

The Bank has a vast network of 813 branches and 76 extension counters (as on 31.03.2006) spread all over India catering to the needs to all section of society irrespective of their social and economic strata. These branches are manned by a dedicated work force of 9778 personnel.

In line with the spirit of liberalisation, the Bank is laying special stress on International Banking Divisions, Merchant Banking, Hire Purchase and Leasing, Telebanking & Credit Card.

Deposit Accounts

You may open different type of accounts with us such as, savings accounts, term deposits, current accounts including 'No Frills' Account etc with us. You may open such accounts in the following stylesi)

i. Single ii. Joint

iii. Joint (Either or Survivor) iv. Joint (Former or Survivor) v. Joint (Latter or Survivor)

vi. Or in any other style

The above may be opened by you with or without nomination facility. We will explain the implications of the foregoing accounts as also the nomination facilities at the time of opening of the account.

We will also inform you about liquid deposit facility, sweep account and similar types of products offered by us and their implications and procedures involved, at the time of opening of account.

'No Frills' Account

We will make available a basic banking 'No Frills'   Account either with 'nil' or very low minimum balances. The charges applicable for various services/ products in such an account will be indicated in a separate Tariff Schedule. The nature and number of transactions in such accounts may be restricted, which will be made known to you at the time of opening of the account in a transparent manner.  

Special Accounts

 We will make our best efforts to make it easy and convenient for our special customers like senior citizens, physically challenged persons and illiterate persons to bank with us. This will include making convenient policies, products and services for such applicants and customers.

We will inform the procedure for opening of the account and other terms and conditions to blind /other physically challenged persons provided he/she calls on the Bank personally along with a witness who is known to both such person and the bank.

Normally no cheque book facility is provided to illiterate persons and blind persons. However, to meet periodic repayment of retail loans, utility bills etc. we will consider issuing of cheque book with safeguards to protect your interest.

Dormant/ Inoperative Accounts We will

a. tell you when you open your account, what period of inoperation of the account would render your account being classified as dormant/ inoperative account. You will also be informed three months before your account is classified as dormant, inoperative or treated as unclaimed account and the consequences including the charges for reactivation thereof as per the Tariff Schedule;

b. tell you the procedure to be followed if you want to activate the account .

Closing Your Account

Under normal circumstances, we will not close your account without giving you at least 30 days notice. Examples of circumstances, which are not 'normal', include improper conduct of account etc. In all such cases, you will be required to make alternate arrangements for cheques already issued by you and desist from issuing any fresh cheques on such account. 

Clearing Cycle / Collection ServicesWe will

a. tell you about the clearing cycle for local instruments and the outstation instruments including details such as when you can withdraw money after lodging collection instruments and when you will be entitled to earn delayed interest as per our Cheque Collection Policy.

b. provide details, if we offer immediate credit for outstation cheques, including the applicable terms and conditions, such as the limit up to which instruments tendered by you can be credited, operating accounts satisfactorily, etc.

c. proceed as per our cheque collection policy and provide all assistance for you to obtain a duplicate cheque/instrument in case a cheque instrument tendered by you is lost in transit

d. give the above information when you open your account and whenever you ask us. If there is any change in our policy, the revised policy will be displayed on our website and at all our branches.

Cash Transactions

We will accept cheques/ cash and dispense cash at counters wherever your account is maintained. We will exchange soiled/mutilated notes and/ or small coins at such of our branches as per RBI Directives.For transactions above a specified amount we may require you to furnish your PAN Number.

Safe Deposit Lockers

We will give you the complete details of the rules and the procedures applicable for the safe deposit lockers and also safe deposit of valuables, in case we offer the service.

Foreign Exchange Services

a. When you buy or sell foreign exchange, we will give you information on the services, details of the exchange rate and other charges which apply to foreign exchange transactions. If this is not possible, we will tell you how these will be worked out.

b. If you want to transfer money abroad, we will tell you how to do this and will give you:

i. A description of the services and how to use them; ii. Details of when the money you have sent abroad should get there and the

reasons for delays, if any. iii. The exchange rate applied when converting to the foreign currency (if this is

not possible at the time of the transaction, we will let you know later what the rate is);

iv. Details of any commission or charges, which you will have to pay and a warning that the person receiving the money may also, have to pay the foreign bank's charges.

v. We will tell you if the information provided by you for making a payment abroad is adequate or not. In case of any discrepancies or incomplete documentation, we will advise you immediately and assist you to rectify/complete the same.

vi. If money is transferred to your bank account from abroad, we will tell you the original amount received and charges if any levied. If the sender has agreed to pay all charges, we will not take any charges when we pay the money into your account.

vii. We will guide you about regulatory requirements or conditions relating to foreign exchange services offered by us as and when requested by you.

viii. In case of delay beyond the day when the amount is due for credit, you will be compensated (a) for any loss on account of interest for due period beyond the due date and (b) also for adverse movement of forex rate as per the compensation policy of the bank.

ix. All certificates required to be issued under regulatory/statutory instructions will be issued free of charge.

Product and Services(1)Saral Savings Scheme 

Under the RBI direction to achieve greater financial inclusion Bank has since introduced a no frill deposit account named as "_SARAL SAVINGS SCHEME", that would make accessible banking to vast section of society, which has been deprived of the banking facilities till date. . Basic feature of the account shall be as under:-

Such accounts shall remain operative even when these have Zero balance & can be opened in any branch of the bank

"Saral Savings Account" can be opened with the initial deposit of Rs100/- and thereafter the balance may go below Rs 100/- and will continue to be operative with even zero balance, unless the account holder request to close the account. No charges shall be levied in this regard.

Introduction of the account.

An account holder qualifying KYC norms whose account is at least six month old with satisfactory operations may introduce the account.OrAny other evidence as to the identity and address of the customer to the satisfaction of branch incharge.

(2) Saving Bank account

Such accounts can be opened by Individuals (singly or jointly), Associations, clubs, educational institutions.

Minimum Balance in Account

Computerized BranchesI) Where cheque Book is not issued Rs. 500/-II) Where cheque Book is issued Rs. 1000/-

Non–Computerized BranchesI) Where cheque Book is not issued Rs. 250/- II) Where cheque Book is issued Rs. 500/-

Rural Branches I) Account with or without cheque Book facility Rs.100/-

CURRENT ACCOUNT

i) Current Accounts can be opened by individuals, partnership firms, private and public limitedcompanies, HUFs/specified associates, trusts, etc.

ii) As required by law, while opening this account, we satisfy ourselves about the identity, includingverification of address, of a person(s) seeking to open an account to assist in protecting the rightof customer(s) and ourselves against fraud and other misuses of the banking system.iii) We also require a satisfactory introduction of the person(s) opening the account by a personacceptable to the Bank and will require to obtain two recent photographs of the person(s)opening/operating the account, as per RBI directives.iv) You are required to give Permanent Account Number (PAN) or alternatively obtain declaration inForm No. 60 or 61 as per the Income Tax Act (vide Section 139A) from the person(s) opening theaccount (i.e. including partners of Registered/Unregistered partnership as also Registered /Incorporated bodies / companies).v) We provide to our prospective customers details of the documents/required for identification ofthe person(s) opening the account in addition to a satisfactory introduction. Documents normallyaccepted are the current, gas/telephone/electricity bill/ration card/voter’s identity card/drivinglicence/passport, etc.

RECURRING DEPOSIT SCHEME 

Who can open an account

+ An individual who is not insolvent or insane, can open an account singly or jointly.

+ A minor can open Saving bank Account and the same can be ope rated by the natural guardian or by minor himself / herself, if he / she is above the age of 10 years. The account can also be opened jointly.

+ On attaining majority, the erstwhile minor should confirm the balance in his / her account and if the account is operated by the natural guardian / guardian, fresh specimen signature of erstwhile minor duly verified by the natural guardian / guardian would be obtained and kept on record for all operational purpose.

+ Such accounts can be opened by Individuals (singly or jointly), a firm, company, club, Association , Institution, Govt. or Semi Govt. Body, Co-operative societies, religious and charitable institutions etc.

Minimum deposit in the Account - Minimum of Rs. 10/-Maximum deposit in the Account - Maximum of any amount per month.

Minimum and Maximum tenure

Minimum tenure - Minimum period six months.Maximum tenure - Maximum 10 years.

Rate of Interest

+ As per rate applicable to fixed Deposit for the respective maturity period.

FIXED DEPOSIT

Who can open an account

* An individual who is not insolvent or insane, can open an account singly or jointly.

* A minor can open Saving bank Account and the same can be ope rated by the natural guardian or by minor himself / herself, if he / she is above the age of 10 years. The account can also be opened jointly.

* On attaining majority, the erstwhile minor should confirm the balance in his / her account and if the account is operated by the natural guardian / guardian, fresh specimen signature of erstwhile minor duly verified by the natural guardian / guardian would be obtained and kept on record for all operational purpose.

* Such account can be opened in the name of individuals (singly or jointly, Minors (through their guardians) firms, corporate bodies, trusts, Regd. Associations, Joint Hindu family firms and public undertakings.

* Nomination facility is available for depositors

Senior Citizens

Additional interest benefit to Senior Citizen over and above card rate only for Term Deposits upto Rs.15.00 lacs w.e.f 20.01.2006 

i)for term deposits for less than 1 Year - 0.50%

ii)for term deposits for 1 Year and above - 1.00% 

Staff / Ex-staff members

Staff/ Ex-staff members are eligible for 1% extra rate of interest, however, if the ex-staff member is also a senior citizen, he will be eligible for additional interest being senior citizen as above.

VARIOUS FIXED DEPOSIT SCHEMES OF THE BANK

1)FIXED DEPOSIT SCHEME ORDINARY

Under this scheme any sum can be placed for any fixed period ranging from 15 days to 120 months and the interest accrued can be withdrawn at the quarterly intervals 

Minimum period of 7 days also permissible (conditions apply)

2)SAVING WITH SMILE DEPOSIT SCHEME

It is a reinvestment plan deposit scheme, under which compound interest is paid. 

The interest is compounded at quarterly intervals but paid along with principal at the time of maturity of deposit. 

Any amount of deposit shall be accepted under this scheme for a minimum period of 36 months and a maximum period of 120 months.

3)SHORT TERM DEPOSIT SCHEME

It is a reinvestment deposit scheme under which the depositor can place the funds for short period and still can reap the benefits of compound interest. Any amount of deposit shall be accepted under this scheme for a minimum period of 6 months and a maximum period of 36 months

4)CAPITAL GAIN DEPOSIT SCHEME

This is a scheme under which the tax payers can avail of benefits of exemption from Capital gains, only if the amount of Capital gains or the net consideration is deposited in Public Sector Banks on or before their due date of filling the income tax return. (Subject to conditions as contained in relevant provisions of I.Tax Act 1961,) as amended from time to time.

5)HARHI SAVNI (Rabi Kharif) JAMA YOJNA

Harhi savni (Rabi Kharif) Jama Yojna is a unique scheme offered by Punjab & Sind Bank to its farmer friends. The scheme is specially designed to help the farmers to invest their surplus funds at the time of each harvesting . 

The scheme also provides flexibility in depositing the installments with minimum of Rs.1000/-- and in multiples thereof to any amount. 

The deposit of installments is correlated with the harvesting of Hari (Rabi) / Savni Kharif) crops and is required to be deposited each year before 30th June and 31st December every year. 

6)P S B FIXED DEPOSIT TAX SAVER SCHEME

Bank has formulated Fixed Deposit Scheme for Tax Saving under Section 80 C (2) of the Income Tax Act, 1961. 

BENCHMARK PRIME LENDING RATE (BPLR)

Interest rates applicable for domestic credit (Commercial & Institutional Advances 13.50%)

1. Zimidara credit card

2. P&SB policy for financing of Small & Medium Enterprises

3. P&SB tractor finance & tractor welfare fund scheme

4. P&SB scheme for financing of old tractors

5. P&SB drip irrigation scheme

6. P&SB scheme for financing farmers for purchase of land for agricultural purpose

7. P&SB scheme for financing of two wheelers to farmers

8. P&SB scheme for financing of commission agents/aahrtias

9. &SB scheme for financing of harvestor combines

10. Scheme for financing self help groups (SHGS)

11. P&SB kheti udyog khazana yojana (KUKY)

12. P&SB scheme for financing handicapped loan assistance scheme for agricultural activities

13. P&SB scheme for vermi - compositing unit

14. P&SB scheme for eco-hatchery for carp seed production and extension services

15. P&SB scheme for soil water quality and inputs testing laboratory services centre

16. P&SB scheme for plant protection service centre

17. P&SB scheme for horticulture clinic and business centre

18. P&SB scheme for agro service centre - farm machinery and primary processing

19. P&SB scheme for agro service centre-farm machinery

20. P&SB scheme for private veterinary clinic with small dairy unit

21. P&SB scheme for private artificial insemination centre

22. P&SB scheme for private veterinary clinic with retail outlet for feed & medicine

IMPORTANT LOAN SCHEMES OF THE BANK

1. Credit Facilities for Agriculturists : There are number of credit schemes for farmers whichare liberally available to our rural and semi urban branches. The Bank has very attractive KisanCredit Card Scheme for meeting the credit needs of the farmers with provision of personalaccident insurance coverage of KCC holders.The Bank has introduced a unique P&S Bank Diamond Krishi Card (DKC) Scheme to provide morecredit and better facilities to A Class farmers.For tractor financing Bank has made TIE-UP arrangement with Punjab Tractor, Eicher Tractor,Bajaj Tempo and Escorts whereby borrower gets incentives.Besides, there are schemes for:• Purchase of agriculture land for small, marginal borrowers and agricultural labourers.• Purchase of new/old tractors, farm machinery.• Composite loan scheme Kheti Udyog Khazana Yojana.• Purchase of Harvestor Combine.

• Purchase of Two Wheelers by the farmers.Bank has introduced a Joint Mortgage deed for the convenience of farmers to facilitate availmentof agriculture loans without having to execute the deed every now and then.

2. Small Scale Industries : We extend credit to SSI for meeting financial requirements forpurchase of machinery and equipment, for construction of building, for working capitalrequirements. There is provision of collateral free credit upto Rs. 25.0 lac to SSI units which arecovered under credit guarantee fund trust scheme. Upfront Guarantee fee under this scheme isborne by the bank for credit facilities up to Rs. 2.0 lac.

3. LUCC/KVIC Scheme : The bank encourages landing under KVIC Scheme and other Govt.sponsored schemes. We have introduced LAGHU UDYAMI CREDIT CARD SCHEME (LUCC) forworking capital loan upto Rs. 10.0 lac to our existing eligible borrowers under SSI, Retail Tradeand small business/Self employed persons under priority sector.

4. ACC Scheme : Under Artisans credit card scheme hassle free credit facility upto Rs. 2.0 lac isprovided to artisans for their investments needs as well as working capital requirement.

5. Housing Finance : We have very liberal policy for housing finance to the members of the public.Special Scheme have been floated for Govt./PSU employees, Professional and self employedpersons, as also for general public for construction, purchase and renovation/repair ofhouses/flats. For Govt./PSU employees no processing charges are taken.

6. Car Loan: Under this scheme a borrower can get a loan to buy a car on very attractive terms forpersonal use. An individual can club his/her income with that of his/her spouse to avail higherloans. Minimum formalities, simple paperwork and effortless procedure are the main attraction ofthis scheme.

7. Professional Loan : A loan for professional like Doctors, Engineers, Chartered Accountants,Lawyers, Architects, etc., to meet their professional needs is given. One can avail loan forpurchase of all types of medical equipments, machineries, items to start clinics, acquiring orrenovating business premises, air conditioners, generators, refrigerators, computers, etc.

8. Educational Loan : To encourage the youth in attaining expertise in educational and professionalfields, our bank is making available finance upto Rs. 7.50 lac for studies in India and upto Rs.15.0 lac abroad. Bank has formulated a revised education loan policy whereby education loansupto Rs. 7.50 lac are granted without collaterals and with third party guarantee only. Foreducation loan upto Rs. 4.0 lac rate of interest is charged @11.0% p.a. and no margin isrequired.

9. Loan against own Deposit/Govt. Securities : We offer loan against bank’s own deposit and

Govt. Securities like NSCs, IVP/KVC, etc., for personal use or business purpose. A margin of 25%is to be maintained on the principal investment.

10. Personal Clean Loan Facility : We offer personal clean loan facility to officials of Govt. andPublic sector undertaking, local bodies, reorganised universities and schools run by Govt./Localbodies with confirmed service of at least 5 years. The loan amount ranging from Rs. 50000/- toRs. 1.0 lac can be availed for purchase of consumer durables or for any consumption/personaluse or purchase of vehicle, etc.

11. Clean Loan Scheme for retired personnel/pensioners : Who have retired fromCentral/State Govt. or any PSU and should be drawing his/her pension through our bank. The ageof pensioners should not exceed 70 years at the time of applying of loan. The loan upto 10 timesthe monthly pension subject to maximum of Rs. 1.0 lac can be granted for any personal needwithout collateral. However, guarantee of the family pension nominee or major son of a thirdparty acceptable to the bank is to be obtained.

12. ODP Scheme for traders/retailers : Under this scheme credit is available to traders/retailtraders who are in business for at least 5 years. The loan/limit to the extent of 50% of theproperty offered as security subject to a maximum of Rs. 15.0 lac. No stock statement/No billsrequired by the bank.

13. Loan against rent receivables : We offer this scheme to land lords/owners of commercial,residential property who have rented their premises to Govt. Deptt./PSUs/Pvt. Ltd.Cos./MNCs/Embassy or any other organization of repute. Loan to the extent of 80% of rentreceivable during the period of tenancy or 60 months whichever is lower, less income tax payableand any other local tax/maintenance charges to be paid by tenants. Amount of credit should notexceed 40% of the market value of the property to be mortgaged.

14. ODP Scheme for Contractors : Who are registered and are income tax payee, havingminimum three years of experience in his business (Contractorship), credit upto Rs. 25.0 lac canbe extended subject to a maximum of 50% of the value of contracts in hand against themortgage of property valuing at least double the amount of ODP Limit.

15. Festival Loan Scheme : Under festival loan scheme clean loans are granted upto Rs. 1.0 lac tomeet special expenditure for festival celebration such as furnishing of house/shop/office,consumer goods, personal expenditure.

16. Udyogini Scheme : Under udyogini scheme credit facilities are granted to women entrepreneursto avail the loans on liberal terms and exclusive catering of credit under Direct agricultureactivities. Tiny SSI sector, business enterprises, Retail traders, Professional and self employed,

etc.

17. Club Loan Scheme : Under club loan scheme employees of reputed clubs in metropolitan/urbancentres are granted credit facility for purchase of consumer items/for personal useFurther loan applications of Education, Housing, Agriculture, SHGs, SSI have been simplified andrevised for the benefits of borrowers.

18. Golden Jubilee Rural Housing Scheme (GJRHS) : Under this scheme, borrower residing inrural/semi urban areas can avail loan (i) upto Rs. 5 lac for construction of new house and (ii) Rs. 3 lacfor repair/upgradation of existing house (iii) Maximum period for repayment is 15 years againstmortgage of property or other security such as LIC Policy, Govt. Promissiory Note, share/debentures,gold ornaments or any other security.

APPRAISAL/SANCTION/DISBURSEMENT

In the normal course, while appraising the loan the future income prospects of the student will be looked into. However, where required, the means of parent/guardian could also be taken into account to evaluate re-payment capability

The loan to be sanctioned as per delegation of powers preferably by the Branch nearest to the place of domicile.

No application for educational loan received should be rejected without the concurrence of the next higher authority.

The loan to be disbursed in stages as per the requirement/demand directly to the Institutions/Vendors of books/equipments/instruments to the extent possible.

DEBT RESTRUCTURING MECHANISM FOR SMALL AND MEDIUM ENTERPRISES (SMEs)

For improving flow of Credit to Small and Medium Enterprises, a debt restructuring mechanism for units in SME sector is implemented by the Bank which are as under:

Definition of SMEs SMEs as defined in RPCD Circular No. RPCD.PLFNS.BC. 31/ 06.02.31/ 2005-06 dated August 19, 2005, is reproduced below :

At present, a small scale industrial unit is an undertaking in which investment in plant and machinery, does not exceed Rs.1 crore, except in respect of certain specified items under hosiery, hand tools, drugs and pharmaceuticals, stationery items and sports goods, where this investment limit has been enhanced to Rs. 5 crore. A comprehensive legislation which would enable the paradigm shift from small scale industry to small and medium enterprises is under consideration of Parliament. Pending enactment of the above legislation, current SSI/ tiny industries definition may continue. Units with investment in plant and machinery in excess of

SSI limit and up to Rs. 10 crore may be treated as Medium Enterprises (ME).

OTHER ADVANCES

P&SB LOAN SCHEME FOR TRAINING, SKILL UPGRADATION OF CONSTRUCTION WORKERS

P&SB SCHEME FOR EATING-JOINTS P&SB SPECIAL SCHEME FOR INSURANCE AGENTS P&SB ARTISAN CREDIT CARD (ACC) SCHEME P&SB UDYOGINI SCHEME P&SB DIAMOND KRISHI CARD P & S Bank Special Scheme For Loan Against Rent

Receivables P&SB Scheme for Working Capital requirement for Retail

Traders

FOREX DEPOSIT RATES

NON RESIDENT ORDINARY DEPOSITS - w.e.f 01/05/2003

Saving Bank Deposit 3.50% pa.

.

.NON RESIDENT EXTERNAL (NRE) DEPOSITS - w.e.f 01/06/2007 ..

MATURITY INTEREST RATES 

1 Year to less than 2 Years 5.39% p.a.

2 Years to less than 3 years 5.32%p.a.

3 years and upto 5 years 5.30%p.a.

.NON RESIDENT (EXTERNAL) RUPEE SAVINGS A/C w.e.f 18/11/2005

Non Resident (External) Rupee Savings A/C 3.50% pa.

LOCKERS

The Bank provides Locker facilities to its customers with the following details on types of Lockers available vis-à-vis rent of specified branches :

S No Size of Lockers

Category of BranchesSpecialized Locker Branches

Metro / Urban Semi-Urban/RuralExisting Revised

Existing Revised Existing Revised

1 Small 600 500 400 400 700 600

2 Medium 800 800 800 800 1000 1000

3 Large 2000 2000 2500 2500 3000 3000

4 Extra Large 3500 3500 3500 3500 5000 5000

ATM facility  

All the eligible PSB-Central card holders will be issued “PUNJAB & SIND BANK-ICICI BANK” Credit Card free of issuance fee for the first year of issuance, subject to ICICI Bank’s eligibility criteria for issuance of credit card.

The “PUNJAB & SIND BANK-ICICI BANK” Co-branded Credit Card will help not only in retaining the existing clientele but also help in tapping new customers. It will also help in increasing the income by way of issuance/renewal fees, commission on usage and fulfillment charges. The credit card account will be maintained by ICICI Bank. The ICICI Bank will provide all operational services for the credit card covering periodical bills, sending statement, collection, payments and processing of charges etc. The ICICI bank assumes the responsibility for collection, recovery of all charges and fees due by the co-branded card member in respect of co-branded credit card. The ICICI Bank assumes all financial liability and debt risk. Two separate set of application forms have been designed, one for customers of the bank and second for employees of the bank. The salient features of the co-branded “PUNJAB & SIND BANK-ICICI BANK” Credit Card have been incorporated in the application brochure along with essential declaration and eligibility criteria.

EFT

EFT System has been introduced by RBI at selected centers for faster and economical remittance of funds (inter bank/ intra bank). It facilitates quick movement of money from the bank account of one customer to the bank account of another customer. In this system the

sender and the receiver of funds may be located in different cities and may even bank with different Bank.

Benefits:

- There is no upper Limit of amount being transferred- Funds are transferred with in 24 hours- Frauds in processing paper instruments are avoided- RBI-EFT has inbuilt security measures- Beneficiary need not to go to the Bank. Amount is credited to his bank account directly

SPECIAL TREATMENT FOR SENIOR CITIZENS

1. All persons of 60 years and above are eligible for the following special treatment at PSB. (For proof of age - School leaving certificate, LIC policy, Voter identity card, Passport or Birth Certificate issued by a competent authority be given/submitted.)

The scheme is not applicable for ex-staff members as they are already getting benefit under staff scheme.

The senior citizen can open Fixed Deposit Account jointly with other person below the age of 60 years but the first name should be of senior citizen. The scheme is applicable for fresh deposit or renewal of deposit.

2. Rate of Interest 

a)It has also been decided to give additional benefit to Senior Citizens over and above card rates only on term deposits of any amount as under:- For term deposits of less than one year 0.50% For term deposits of One year & above 1.00%

b)If the ex-staff member is also a senior citizen, he will be eligible for additional interest as under being senior citizen in addition to1% extra rate of interest being ex-staff member:

(i) (a)For term deposits of less than one year 0.50% p.a.(b)For term deposits of One year & above 1.00% p.a.

(ii)The above interest rates shall come into effect with retrospective effect from 01.01.07

FAIR PRACTICE CODE FOR CUSTOMER SERVICE

INTRODUCTION

This is a voluntary Code, which sets standards of fair banking practices for member banks of Indian Banks' Association to follow when they are dealing with individual customers. It provides valuable guidance to you for your day-to-day operations. The Code applies to:-current, savings and all other deposit accounts-pension, PPF accounts etc. operated as agents of RBI/Government-collection and remittance services offered by the banks-loans and overdrafts-foreign-exchange services-card products -third party products offered through our network. 

INFORMATION Helping you to choose products and services, which meet your needs Before you become a customer, we will:-give you clear information explaining the key features of the services and products you tell us you are interested in-give you information on any type of account facility which we offer and may suit your needs -tell you what information we need from you to prove your identity and address and to comply with legal and regulatory requirements, and-request for additional information about you and your family to build a database but such information can be furnished by you only if you wish and we will not compel you to give this information for opening your account. We will tell you if we offer products and services in more than one way [for example, through ATMs on the internet, over the phone, in branches and so on] and tell you how to find out more about them.Once you have chosen an account or service, we will tell you how it works.When you open a single account or a joint account, we will give you information on your rights and responsibilities.We recommend that you avail nomination facility offered on all deposit accounts, articles in safe custody and safe deposit vaults. We will guide you how we will deal with deposits and other assets held with us in the name of a deceased person in the absence of nomination.

INTEREST RATESYou can find out about our interest rates by:-looking at the notices in our branches-phoning our branches or help-lines-looking on our website; or-asking our designated staff.When you become a customer, we will give you information on the interest rates which apply to your accounts, and when we will pay interest on your deposits or debit interest on your loan accounts. We will also tell you our website address, our help-line numbers and the other ways in which you can find out about changes in the interest rates.We will explain how we apply interest to your account.Changes in interest ratesWhen we change the interest rates on our products, we will update the information on our telephone help-line and our website within three working days.Interest on savings accountsAt the time of opening of the account, we will inform you of the rate at which interest is paid on your savings deposits [presently, it is regulated by Reserve Bank of India], how it is calculated and its periodicity.

ADVERTISING AND MARKETINGWe will make sure that all advertising and promotional material is clear, fair, reasonable and not misleading. We will seek your specific consent for giving details of your name and address to any third party, including other entities in our group, for marketing purposes. We would like to provide you with the entire range of financial services products, some of which are our own products while some others are the products of our group/associate/entities or companies with whom we have tie-up arrangements. We will however tell you about our associate / group entities or companies having business tie-up arrangements with us and if you so desire, direct their staff / agents for marketing their products. 

CARDS AND PINsWe will only send you a card if you ask for one or to replace a card you already have. 

If you do not recognise a card transaction that appears on your statement, we will provide you with more details. In some cases, we will need you to give us confirmation or evidence that you have not authorised a transaction.We will give you your PIN [personal identification number] separately from your card. We will not reveal your PIN to anyone else.We will tell you about our systems to allow you to choose or change your PIN. This should make it easier for you to remember the PIN of your choice.

PROTECTIONConfidentialityWe will treat all your personal information as private and confidential [even when you are no longer a customer]. We will not reveal transaction details of your accounts to a third party, including entities in our group, other than in the following four exceptional cases when we are allowed to do -If we have to give the information by law-If there is a duty towards the public to reveal the information-If our interests require us to give the information [for example, to prevent fraud) but we will not use this as a reason for giving information about you or your accounts [including your name and address] to anyone else, including other companies in our group, for marketing purposes-If you ask us to reveal the information, or if we have your permission to provide such information to our group/ associate /entities or companies when we have tie-up arrangements for providing other financial service products.Wherever we have installed CCTV for close surveillance as part of security arrangements, the same will be indicated.

LOANS AND ADVANCESBefore we lend you any money or increase your overdraft, credit card limit or other borrowing, we will assess whether we feel you will be able to repay it.If we offer you an overdraft, or an increase in your existing overdraft limit, we will tell you if your overdraft is repayable on demand or otherwise.Wherever possible, reasons for rejection of loans will be conveyed to you.

FURTHER ASSISTANCEComplaints / Grievances and Feedback / SuggestionsInternal proceduresIf you want to make a complaint, we will tell you how to do this and what to do if you are not happy about the outcome. Our staff will help you with any questions you have.Within two weeks of receiving your complaint, we will send you a written acknowledgement. After examining the matter, we will send you our final or other response within eight weeks and will tell you how to take your complaint further if you are still not satisfied.Banking Ombudsman Service and other avenues for redressalWithin 60 days of lodging a complaint with us, if you do not get a satisfactory response from us and you wish to pursue other avenues for redressal of grievances, you may approach Banking Ombudsman appointed by Reserve Bank of India under Banking Ombudsman Scheme 2002. Details of Banking Ombudsman are displayed in the branch notice boards. Our staff would explain the procedure in this regard.Feedback and SuggestionsPlease provide feedback on our services. Your suggestions will help us to improve our services.

MONITORINGWe have a 'Nodal Officer' to ensure compliance of the Code. Our internal auditing procedures

make sure we meet the Code.Standing Committee to Monitor the CodeA Standing Committee consisting of a panel of three reputed persons with banking background will monitor "Bankers' Fair Practice Code". The Standing Committee will operate from the office of Indian Banks' Association

CUSTOMER RIGHTS

As a valued Customer of Punjab & Sind Bank, you enjoy the following rights: 

1. UPDATION OF SAVINGS BANK PASS BOOKS / STATEMENT OF ACCOUNTS: To get your passbook updated on presentation legibly with full entries. If the number of entries to be made is large, kindly leave the passbook against receipt showing the date when it can be collected back. You can obtain the statement of account indicating full details by 5th of every month in case you have not been issued a passbook. 

2. STANDING INSTRUCTIONS: You can give standing instructions to transfer specified amounts from your deposit/loan accounts periodically provided you keep a sufficient balance in the account.

3. ISSUE OF CHEQUE BOOK: You can obtain a new cheque book when your requisition slip appears next in the current cheque book. 4. IMMEDIATE CREDIT OF LOCAL/OUTSTATION CHEQUES: Customers can avail facility of the instant credit of outstation cheques up to Rs. 5000/-. The bank extends the facility to all depositors having proper conduct of the account without making a distinction about their status i.e. Saving Bank, Current or Cash credit. The facility is also allowed to the customers at the Bank's Extension counter. Normal collection charges are levied in case of outstation cheques and a charge of Rs. 5/- in case of local cheques. In the event of cheque being returned unpaid, the bank can recover interest in conformity with the applicable interest rate directive of Reserve Bank of India for the period the bank is out of funds. a) The interest is charged to the customer for the period between date of credit of the outstation cheques lodged and its return. b) Interest is charged from the date of return of the cheque till the reimbursement of money to the bank. c) Where the cheque is credited to a Saving Bank Account, no interest will be payable on the amount so credited if the cheque is returned unpaid.

5. COLLECTION OF LOCAL CHEQUES  Your account should be credited and you are allowed free use of funds latest on the third working day from the day of acceptance of the cheque/draft at the counter (excluding Bank Holidays).

 6. INTEREST PAYMENT FOR DELAYED COLLECTION : Bank assures its customers of collection of proceeds of outstation cheques within 14 days. No interest shall be payable in case credit against outstanding cheques is credited within the period of 14 days, from the date of collection. For any delay beyond this period the customer shall be entitled to interest as per applicable on Saving Bank Deposit.  

7. SAFE CUSTODY SERVICES : 

You can avail Safe Custody Services at all branches of the bank for deposit of scrips/sealed covers and Bank's own deposit receipts only. 8. DISPLAY OF IMPORTANT INFORMATION AT THE BRANCHES : Branches should display at a conspicuous place : 

(a) Deposit Schemes; (b) Credit Schemes; (c) Rate of interest; (d) Time norms; (e) Exchange rates in case of branches dealing in Foreign Exchange; (f) Names and addresses of H.O. officials and Zonal Managers for Redressal of Grievences. (g) Name and address of the concerned Banking Ombudsman  9. NOMINATION FACILITY : Nomination facility is available not only in individual deposit accounts but also in case of safe custody of articles and Safe Deposit Locker Accounts. This can be availed of in existing as well as new accounts. Nomination should be a rule unless you prefer not to nominate and it is recorded, to avoid conjecture of non-compliance.Nomination can be made in respect of sole proprietary firms besides individual accounts. 

10. ACCEPTANCE OF SMALL DENOMINATION MULTILATED NOTES : Small denomination / mutilated notes are freely accepted and exchanged from all the customers without any limit and reservation (at designated branches).  11. WITHDRAWALS IN SAVINGS BANK ACCOUNT : You can make upto 50 withdrawal each half year in your Saving Bank Account without paying any service charges.  12. WITHDRAWAL FROM SAVINGS BANK ACCOUNTS THROUGH WITHDRAWAL SLIP : You can personally withdrawal upto Rs. 5.000/- from your Savings Bank account by withdrawal slip. Passbook should invariably accompany the withdrawal slip.  13. RECEIPT OF INSTRUMENTS : The staff receiving any instrument like cheque, bill, etc. for collection should give a receipt on the counterfoil of pay-in slip to the lodger. 

14. PHOTOGRAPH OF DEPOSITOR : Photographs are not insisted upon at the time of opening of account in following cases : (a) New Savings Bank Account where cheque book facility is not asked for; and (b) Term deposits upto an amount of Rs. 10,000/-.  15. ISSUE OF IDENTITY CARDS TO CUSTOMERS HAVING CURRENT/ CASH CREDIT ACCOUNTS : Identity Cards valid for one year are issued to those having Current / Cash Credit Accounts as well as to their authorized representatives at a fee of Rs, 100/-.  16. VALUE-DATING OF MAIL / TELEGRAPHIC TRANSFER : Credit is given for Mail Transfer within seven days (ten days in the case of North-Eastern States) from the date of deposit of funds. Telegraphic Transfers issued from and payable at State Capitals and Centres having population above 12 lakhs will be value-dated from third day. In case of delays, Bank will pay interest at the rate of 2 percent over the Savings Bank rate for the period of delay. 

17. PAYMENT OF INTEREST ON DEPOSIT MATURING ON A HOLIDAY : When due date of a tern deposit happens to be a holiday or a non-business working day, then you are paid interest for the intervening holiday/non-business working day. 

Banking Ombudsman Service

a. We will display on our website and in all our branches a notice explaining that we are covered by the Banking Ombudsman Scheme, 2006 of the Reserve Bank of India. Copy will be made available on request at a nominal charge .

b. Within 30 days of lodging a complaint with us, if you do not get a satisfactory response from us and you wish to pursue other avenues for redressal of grievances, you may approach Banking Ombudsman appointed by Reserve Bank of India under Banking Ombudsman Scheme, 2006. Salient features of the Banking Ombudsman Scheme are displayed in the branch notice boards and the scheme itself is displayed on our website. Our staff would explain the procedure in this regard.

Credit card

1. While you apply for card, we will explain the relevant terms and conditions such as fees and interest charges, billing and payment, method of computation of overdues renewal and termination procedures, and any other information that you may require to operate the card.

2. We will advise you of our targeted turn around time while you are availing / applying for a product / service.

We will send a service guide/member booklet giving detailed terms and conditions, losses on your account that you may be liable if your card is lost / misused and other relevant information with respect to usage of your card along with your first card.

If you do not recognize a transaction, which appears on your card statement, we will give you more details if you ask us. In cases, where we do not accept your contention we will give you evidence that you had authorized the transaction, in question.

Internet Banking

Online banking is safe and convenient as long as you take a number of simple precautions. Please make sure you follow the advice given below:

1. Visit our Internet banking site directly. Avoid accessing the site through a link from another site or an email and verify the domain name displayed to avoid spoof websites.

2. Ignore any e-mail asking for your password or PIN and inform us of the same for us to investigate the same. Neither the police nor we will ever contact you to ask you to reveal your online banking or payment card PINs, or your password information.

3. We advise you not to use cyber cafés /shared PCs to access our Internet banking site. 4. We advise you to update your PC with latest anti-virus and spy ware software

regularly. You may install security programmes to protect against hackers, virus attacks or malicious 'Trojan Horse' programmes. A suitable firewall installed in a

computer to protect your PC and its contents from outsiders on the Internet is recommended.

5. Disable the 'File and Printing Sharing' feature on your operating system. 6. Log off your PC when not in use 7. Do not store your ID/PIN in the Internet Explorer Browser 8. Check your account and transaction history regularly 9. Follow our advice - our websites are usually a good place to get help and guidance on

how to stay safe online. 

SIGNIFICANT ACCOUNTING POLICIES

1. GeneralThe financial statements are prepared on historical cost basis by following goingconcern concept and conform to the statutory provisions and practices prevailing inIndia, unless otherwise stated.

2.Foreign Exchange TransactionsAll the Monetary assets and liabilities in foreign currencies are translated in Indianrupees at the exchange rates prevailing at the Balance Sheet date as notified byForeign Exchange Dealers Association of India (FEDAI). The resultant gain / loss isaccounted for in the Profit & Loss account.2.2 The outstanding foreign exchange contracts are stated at the prevailing exchangerate on the date of commitment. Profit or loss on such contracts is accounted for asper FEDAI guidelines.2.3 Items of Income and expenditure relating to foreign exchange transactions arerecorded at exchange rates prevailing on the date of the transactions.2.4 Acceptances, endorsements and other obligations including guarantees in foreigncurrencies are valued as per the rates published by FEDAI as on the date of closing.

3. Investments3.1 Classification, valuation and applicable provisions in respect of investments are madein accordance with the prudential norms prescribed by Reserve Bank of India readwith clarifications / directions given by RBI.3.2 The entire investment portfolio is classified into three categories, viz, Held to Maturity,Available for Sale and Held for Trading in line with the guidelines / directions ofReserve Bank of India. Shifting of securities from one category to another is donewith the approval of the Board normally once in a year. Shifting is effected at the lowerof acquisition cost / book value / market value on the date of transfer and thedepreciation, if any, on such shifting is fully provided for and the book value of thesecurities is changed accordingly. Disclosure of the investments under the threecategories mentioned above are made under six classifications viz.,i. Government Securities;ii. Other approved securities;iii. Shares;iv. Debentures and Bonds;v. Subsidiaries / Joint Ventures andvi. Others.3.3 Securities under 'Held to Maturity' are stated at acquisition cost unless such cost arehigher than the face value, in which case the premium is amortized over the remainingperiod of maturity. Such amortization is shown under “Other Income” – Schedule 14as a deduction from ‘Profit on Revaluation of Investments’ item III. In case the cost isless than the redemption value, the difference being the unrealized gain is ignored.Any diminution in value of investments in subsidiaries and joint venture, other thantemporary in nature, is provided for each investment individually.

3.4 Securities under ’Available for sale’ are valued scrip wise and depreciation/appreciation is segregated category wise. While net appreciation is ignored, netdepreciation under each category is provided for and an equivalent amount (net of taxbenefit, if any, and net of consequent reduction in transfer to Statutory Reserve) istransferred to Profit & Loss Account from the Investment Fluctuation Reserve. In caseof excess provision for depreciation, the excess amount is credited to profit and lossaccount and an equivalent amount (net of taxes, if any, and net of transfer to StatutoryReserve as applicable to such excess provisions) is appropriated to the InvestmentFluctuation Reserve.3.5 Securities under 'Held for Trading' are valued at market price and the net depreciationunder each category is provided for and the net appreciation, if any, is ignored.3.6 Cost of investment is based on the weighted average cost method category wise.3.7 The 'market value' for the purpose of valuation of investments included in the'Available for Sale' and 'Held for Trading' categories is the market price of the scrip asavailable from the trades/quotes on the stock exchanges, price list of RBI, pricesdeclared by Primary Dealers association of India (PDAI) jointly with the Fixed IncomeMoney Market and Derivatives Association of India (FIMMDA).In respect of unquoted investments, the procedure adopted is as below:a. Government of India Securities: At rates put out by FIMMDA/PDAI;b. State Government Loans, Other approved Securities, preference shares,Debentures and PSU Bonds: On yield to maturity (YTM) basis at the rateprescribed by FIMMDA/ PDAI with such mark ups as laid down by RBI orFIMMDA/PDAI;c. Equity Shares: At break-up value based on the latest Balance Sheet, which arenot older than one year on the date of valuation. In cases where latest BalanceSheets are not available, the shares are valued at Re.1 per company;d. Mutual Fund Units: At re-purchase price or Net Assets Value;3.8 In determining acquisition cost of investments:a. Incentive received on subscription is deducted from the cost of securities;b. Brokerage / commission/ stamp duty paid in connection with acquisition ofsecurities are treated as revenue expenditure;c. Broken period interest, if any, paid on acquisition of investment is debited toprofit & loss account. Broken period interest received on sale of securities isrecognized as Interest Income.3.9 Profit/loss on sale of investments is taken to profit and loss account. However, in caseof profit on sale of investments in 'Held to Maturity' category, an equivalent amount ofprofit is appropriated to Capital Reserve.

4 Advances4.1 Advances are classified into "Performing" and "Non-performing" assets and provisionsare made as per the prudential norms prescribed by the Reserve Bank of India anddirection of RBI from time to time.4.2 Advances are stated net of de-recognized interest and provisions/ Technical write offmade in respect of non-performing advances. Claims received from DICGC/ ECGCare not reduced from such advances till adjusted/ technically written-off whereas partrecovery in all NPA Accounts is reduced from advances.4.3 Provision on standard advances are made and are included under ‘Other Liabilitiesand Provisions’ as per RBI guidelines.

5 Fixed Assets5.1 Premises (except those revalued) and other Fixed Assets are stated at historical cost.Appreciation in respect of premises on revaluation, where segregation is not possiblebetween land and superstructure, are considered in the value of superstructure.5.2 Premises taken on perpetual lease are considered as freehold premises and are notamortized.

6 Depreciation on Fixed Assets6.1 Depreciation is provided for on -6.1.1 Computers at 33.33%, on straight-line method; additions are depreciated for the fullyear irrespective of the date of addition as per RBI guidelines.6.1.2 Other Fixed assets on written down value method at the rates prescribed by theIncome Tax Act 1961; additions effected before 30th September are depreciated forfull year and additions effected thereafter are depreciated for half year.6.1.3 Composite cost of premises wherever it is not possible to segregate the cost of landfrom the cost of the superstructure.6.2 No depreciation is provided in assets sold/disposed of during the year.6.3 Amount equivalent to depreciation attributable to revalued portion of the assets istransferred from Revaluation Reserve Account to the Profit & Loss Account.

7 Revenue Recognition7.1 Income and expenditure are accounted for on accrual basis unless otherwise stated.7.2 Income on non-performing assets is recognized on realization basis in accordancewith the prudential norms prescribed by Reserve Bank of India.7.3 Partial recovery in non-performing assets is appropriated first towards principal andthereafter towards interest.7.4 Income on guarantees and letters of credit issued, Locker rent, income from MerchantBanking transactions, money transfer service, dividend on shares, Interest on Refundof Income Tax, commission on credit card, Government business including distributionof pension and income from units of Mutual Fund product are accounted for on receiptbasis.7.5 Rebate on compromised accounts is accounted for at the time of full and finaladjustment of the account.7.6 Interest on overdue Term Deposits is accounted for as and when the deposits arerenewed.7.7 Liability in respect of incremental lease rent on renewal of lease agreement isaccounted for at the time of renewal of the lease.7.8 Bond Issue Expenses incurred in connection with raising Tier-II Capital are treated asDeferred Revenue Expenditure to be written off over a period of five years.

8 Staff Retirement Benefits8.1 Annual contribution to Gratuity Fund, Pension Fund and Leave encashment Fund areprovided for on the basis of actuarial valuation.8.2 Additional pension liability arising on account of change in actuarial valuation fromCurrent Unit Credit Method to Projected Unit Credit Method is spread over a period of10 years starting from 2004-05 as approved by Reserve Bank Of India vide its letterno.DBOD.BP.No.271/21.01.002/2005-06 dated 23.08.2005.

9. Taxes on Income9.1 Current Income Tax and Fringe Benefits Tax is measured at the amount expected tobe paid considering the applicable tax rates and favorable judicial pronouncement/legal opinions.9.2 In accordance with AS-22 Deferred Tax comprising of tax effect of timing differencesbetween taxable and accounting income for the period, is recognized keeping in viewthe consideration of prudence in respect of Deferred Tax Assets.

Your rights as a customer of our bank

COMMON PRACTICES FOLLOWED BY OUR BRANCHES FOR YOUR CONVENIENCE

1. Display of business hours.

2. Attend to all customers present in the banking hall at the close of business hours andrendering of courteous service.

3. Provide separate ‘Enquiry’ or ‘May I Help You’ at large Branches.

4. Offer nomination facility to all deposit accounts (i.e. account opened in individual capacity)and all safe deposit hirers (i.e. individual hirers).

5. Display interest rates for various deposit schemes from time to time.

6. Notify change in interest rates on advances.

7. Display of Service Charges on issue of Demand Drafts, Pay Orders, Duplicate Drafts,Cancellation of Drafts, Collection of Documents, etc.

8. Display Time – Norms for various Banking Transactions.

9. Pay interest for delayed credit of outstation cheques, as advised by Reserve Bank of India(RBI) from time to time.

10. Display of availability of Locker facility at the Branch.

11. Display of Tax Collection facility at the Branch.

12. Accord immediate credit in respect of outstation and local cheques upto a specified limitsubject to certain conditions, as advised by RBI from time to time.

13. Provide complaint/suggestion box in the Branch premises.

14. Display address of Zonal & Head Offices, as well as Nodal Officer dealing with customergrievances/complaints.

15. Name and address of the concerned banking ombudsman.

16. Corruption free service to all customers.

17. We have extended business hours in our fully computerised branches in Delhi.

COMMON AREA OF CUSTOMER BANKER RELATIONSHIP :

DEALING IN DIFFERENT ACCOUNTS TYPE PROVIDED BY BANK LIKE:(a) SAVING BANK ACCOUNT:i) These accounts are designed to help the individuals (personal customers) to inculcate habit ofsaving money and to meet their future requirement of money. The amount can be deposited /withdrawn from these accounts by way of cheques / withdrawal slips. The withdrawals arerestricted to 50 entries each half-year in the S.B. Account.ii) Saving Bank accounts are very popular. These accounts can be opened by eligible person(s) andcertain organization(s) / agencies as approved by the Reserve Bank of India (RBI).iii) As required by law, while opening this account, we satisfy ourselves about the identity, includingverification of address, of a person(s) seeking to open an account and to assist in protecting ourprospective customer(s) and ourselves against fraud and other misuses of the banking system.iv) We are required to obtain two recent photographs of the person(s) opening the account, as perR.B.I. directives.

(b) CURRENT ACCOUNTi) Current Accounts can be opened by individuals, partnership firms, private and public limitedcompanies, HUFs/specified associates, trusts, etc.ii) As required by law, while opening this account, we satisfy ourselves about the identity, includingverification of address, of a person(s) seeking to open an account to assist in protecting the rightof customer(s) and ourselves against fraud and other misuses of the banking system.iii) We also require a satisfactory introduction of the person(s) opening the account by a personacceptable to the Bank and will require to obtain two recent photographs of the person(s)opening/operating the account, as per RBI directives.iv) You are required to give Permanent Account Number (PAN) or alternatively obtain declaration inForm No. 60 or 61 as per the Income Tax Act (vide Section 139A) from the person(s) opening theaccount (i.e. including partners of Registered/Unregistered partnership as also Registered /Incorporated bodies / companies).v) We provide to our prospective customers details of the documents/required for identification ofthe person(s) opening the account in addition to a satisfactory introduction. Documents normallyaccepted are the current, gas/telephone/electricity bill/ration card/voter’s identity card/drivinglicence/passport, etc.

(c) TERM DEPOSIT ACCOUNTS :i) We have tailored various deposit schemes to suit the needs and expectations for investing inevery walk of life, which are prominently displayed at our branches for your convenience.We welcome you to seek more details and shall also be glad to assist in the area ofinvestment in various deposit schemes vis-a-vis your requirement.ii) Term Deposit accounts can be opened by individuals, partnership firms, private and public

limited companies, HUFs/specified associates, etc.iii) As required by law, while opening this account, we satisfy ourselves about the identity,including verification of address, of a person(s) seeking to open an account, to assist inprotecting the prospective customer(s), members of the public and ourselves against fraudand other misuses of the banking system.iv) We require a satisfactory introduction of the person(s) opening the account by a personacceptable to the Bank and will obtain two recent photographs of the person(s) opening theaccount, as per R.B.I. directives.v) We also require to obtain Permanent Account Number (PAN) or alternatively obtaindeclaration in Form No. 60 or 61 as per the Income Tax Act (vide Section 139 A) from the (d) CAPITAL GAIN SCHEME - THE TAX SAVER SCHEMEExemption of Capital Gain Tax under Section 54B, 54D, 54F and 54G of I.T. Act, 1961 is availableon amount deposited under Account ‘A’ (Saving Deposit) and/or Account ‘B’ (Term Deposit) withoption to keep deposit on cummulative or non-cummulative basis at Branches.

PAYMENT OF BALANCE IN ACCOUNTS OF THE DECEASED CUSTOMERS TO SURVIVORS/ CLAIMANTS:As directed by the RBI, we do not insist on succession certificate from legal heirs in accountshaving survivorship / nominee irrespective of amount involved.

STANDING INSTRUCTIONSStanding instructions can be given to the Bank for transfer/remittance of funds from one accountto other account(s) maintained in the same Branch, any other Branch of the bank or any other Bankor any other third party.

SAFE DEPOSIT LOCKERSThe facility of Safe Deposit Lockers is an ancillary service offered by our Bank. The Branchesoffering this facility will indicate/display this information at a prominent place.The major aspects governing the services are :A locker may be hired by an individual (not minor) firms, limited companies, specifiedassociations and societies etc. except blind persons.Nomination facility is available to individual hirer of Safe Deposit locker.Loss of key should be immediately informed to the Branch and customer will be charged forbreak-opening of the Locker.Lockers are available in different sizes.Lockers are rented out for a minimum period of one year as per bank’s policy. In case ofoverdue rent, the Bank will charge penalty as decided from time to time.With standing instruction, the rent may be paid from the deposit account of the hirer.We will issue locker only to properly introduced persons.We reserve our right to break open the locker if the rent is not paid inspite of giving noticesas per the Bank rules and recover charges thereof.

ARTICLES IN SAFE CUSTODYArticles like shares, securities, etc., can be kept in safe custody with the Bank on prescribedcharges wherever such facility is offered. Large/small boxes must be locked by the customer(s)

and particulars must be written/painted thereon. The lock should be covered by stout and sealedwith the customer’s seal. Relationship of Banker and customer shall be that of Bailer & Bailee.

NOMINATIONNomination facility is available for all deposit accounts, articles in safe custody and safedeposit vaults.Nomination is available for accounts opened in individual capacity (i.e. single/joint accountsas well as accounts of a sole proprietary concern) only i.e. not for accounts opened inrepresentative capacity.Nomination can be done in favour of one person only. However, nomination in favour of morethan one person (i.e. upto 2 persons) is permissible in jointly operated locker accounts withcommon consent.Nomination can be made, cancelled or varied by the account holder anytime during his/herlifetime. While making nomination, cancellation or variation, witness is required and allaccount holders should sign the request.Nomination can be made in favour of a minor also.PENSION PAYMENTSPensioners of Central and State Governments can open a separate pension account in any ofour Branches.Pensioners are requested to produce the life certificate once in a year (i.e. in the month ofNovember) to enable the Branches to pay pension without interruption/delay.The pension will be credited by the Branch to the Pensioner’s savings or current accountduring the last four working days of the month. The pension for the month of March will becredited on or after 1st working day of April. The pension will not be paid in cash or througha joint account. Every pensioner is required to submitlife/marriage/remarriage/unemployment certificates periodically.EXEMPTIONS: Exemptions of minimum balance, incidental charges, withdrawal of pension bywithdrawal form to the pensioner’s dependent are available.

REMITTANCE SERVICECustomers may remit funds from one centre to another centre by Demand Draft orTelegraphic Transfer (TT) etc. by paying specified charges as per the Bank’s rules.The customers can utilize the facility of Electronic Funds Transfer (EFT) System operatedthrough RBI for transferring funds to and from Delhi, Kolkata, Chennai, Mumbai, Jaipur,Chandigarh, Kanpur, Patna, Guwahati, Ahemadabad, Bhuvneshwar, Nagpur, Hyderabad,Bangalore and Tiruvanantapuram, Upto Rs. 2 crores per remittance.Demand Drafts, telegraphic and pay orders for Rs. 50,000/- and above will be issued by theBanks only by deposit to the Customer’s account or against cheques or other instrumentstendered by the purchaser and not against cash payment. Similarly such payments for Rs.50,000/- and above will be made through banking channels and not in cash.

ISSUE OF DUPLICATE DEMAND DRAFT WITHOUT RECEIPT OF NON-PAYMENTADVICEAs directed by the RBI, we will issue duplicate demand draft upto Rs. 5000/- on the basis of adequateindemnity and without obtaining Non-Payment Advice from the drawee Branch.

TIME FRAME FOR ISSUE OF DUPLICATE DRAFTAs directed by the RBI, we will issue duplicate demand draft to the customer within a fortnight fromthe receipt of request. For delay in issuing duplicate draft beyond the above stipulated period, we willpay interest at the rate applicable for fixed deposit of corresponding maturity in order to compensatethe customer for such delay.

CASH ORDER (i.e. PAY ORDER, BANKER’S CHEQUE)Cash Order is issued for making payment locally. Issue/payment of cash order for Rs. 50,000/- andabove is to be made only through the Bank account.Validity period of cash order is 3 months. This can be revalidated by the issuing Branch on writtenrequest of the purchaser at nominal service charges.

COLLECTION SERVICEImmediate credit of local as well as outstation cheques upto Rs. 5000/- (as per RBI guidelines fromtime to time) is provided to the individuals (personal customers) who are maintaining, satisfactoryaccounts. However, the customers will have to bear usual service charges, as well as the postalcharges. In the event of cheques being returned unpaid, the customer will have to pay interest forthe period for which funds utilised.All cheques (local and outstation) deposited by the customers are cleared by the Bank as follows:LOCAL CLEARING : Cheques are cleared normally on the third working day, depending on thecentre subject to depositing of the cheques/instruments in time.NATIONAL CLEARING : Cheques drawn on metropolitan centres listed in National Clearing arecleared in 8 days.All cheques drawn on other centres are cleared in 14 days.We will credit the proceeds of an outstation cheque within the following time norms:State Capital other than North Eastern States & Sikkim : 10 working daysOther Centres : 14 working days

COLLECTION OF GOVT. DUESThe Bank handles collection of various taxes, electricity, telephone bills on behalf of Govt. of IndiaPublic undertaking through selected designated Branches, which will be displayed at the Branch. Weare collecting Direct Taxes presently through 209 authorized branches with group wise connectivity.

EXCHANGE OF SOILED/SLIGHTLY MUTILATED CURRENCY NOTESWe freely exchange soiled/slightly mutilated currency notes and certain other types of mutilatedcurrency notes of all denominations.

INTEREST ON DEPOSITS

For your convenience, the prevailing rates on deposits are displayed prominently at each branch,which are subject to revision from time to time.

SERVICE CHARGESWe provide various services to customers, for which service charges are levied. The charges arereviewed/revised from time to time.

CREDIT CARD / ATM CARD FACILITIESPunjab & Sind Bank credit card is a Master Card, which comes with host of features and benefits.Some of the special features of this card are as under.• Maximum Interest Free Credit period:• Revolving Credit Facility:• Free Insurance benefits:• Powerful Rewards Programme:• Purchase Protection• Global Acceptance• Balance Transfer:• ATM facility:• Comprehensive Travel Benefits:• 24 Hour Customer Care Centre:• House hold Insurance at nominal premium:The “Punjab & Sind Bank Credit Card” comes in two variants: Silver and Gold card.

MARKETING & INSURANCE PRODUCTS(i) Non Life Products: We are agent of M/s Bajaj Allianz General Insurance Company and sellall their non-life products through our network of branches across the country.(ii) Life Products: Our bank has tie up arrangement of Life Insurance business with M/s AvivaLife Insurance Company India Pvt. Ltd. We are offering their following three products:(a) Life Bonds(b) Easy Life Plus(c) Pension PlusThe Customers may consult our branches for more details.

NRI ACCOUNT & FOREIGN EXCHANGE FACILITIESOur Bank has nine specialized International banking Divisions (IBDs) and 26 other AuthorisedBranches to handle Foreign Exchange Business. Besides this, we have a Global Banking Centre atConnaught Place, New Delhi to provide services to Non-Resident Indians with regard to depositaccount.We have various exclusive deposit schemes for Non-Resident Indians living abroad as well asreturning back to India after their venture abroad.These schemes are:-(i) NRE, (Non-Resident External Account)(ii) FCNR (Foreign Currency Non-Resident)(iii) RFC (Resident Foreign Currency) Accounts, available for various durations from 6 months to 3years as per RBI guidelines from time to time.

FCNR account can be opened in US Dollar, GB Pound and Euro. The account is maintained inforeign currency and the risk of exchange rate fluctuation is borne by the bank.

OUR SPECIALISED BRANCHESName and addresses of all our specialized branches are given in Schedule-VII at the last.

CHECK LIST REQUIREMENTS FOR AVAILING DIFFERENT CREDIT FACILITIESThe requirements for availing different credit facilities from the Bank are given in Schedule-V atthe last.

CREDIT FACILITIES TO AGRICULTURISTSZamindara Credit Card, KVIC, Financial Assistance against old Tractors & Other consumer facilitiesfor Agriculturists are available at our Rural/Semi Urban Branches.

IMPORTANT LOAN SCHEMES OF THE BANKWe have the attractive loan schemes suitable to different segment of customers. The details ofimportant loan scheme of our bank are given in Schedule-IV at the last.

CONSUMER CREDITWe assist our customers to uplift the standard of their living, you may increase your purchasingpower by availing consumer credit facilities at all our Branches to purchase Television, VCR, VCP,VCD, DVD, Stereo, Washing Machine, Refrigerator, Air-Conditioner, Microwave Oven, DishWasher, Cooking Range, Genset, Invertors, Computer, etc., at very low margin of 10% only. Anindividual can club his/her income with that of his/her spouse to avail higher amount of loan. Thegroup of employees working in an Institution/Organization in private/Public Sector undertakingcan also avail loan on very attractive terms.

HOUSING LOANSTo build your dream house, please avail Housing Loan at attractive rates from ourBranches/Housing Finance Branches in selected cities. The list of our Housing Finance branches isgiven in Schedule-VI at the back.

ISSUE OF IDENTITY CARDS TO CUSTOMERS HAVING CURRENT/CASH CREDITACCOUNTSIdentity Cards valid for one year are issued to those having Current/Cash Credit Accounts as wellas to their authorised representatives at a fee of Rs. 100/-.

VALUE-DATING OF MAIL/TELEGRAPHIC TRANSFERCredit is given for Mail Transfer within seven days (ten days in the case of North-Eastern States)

from the date of deposit of funds.Telegraphic Transfers issued from and payable at State Capitals and Centres having populationabove 12 lakhs will be value-dated from third day.In case of delays, Bank will pay interest at the rate applicable on Saving Bank Deposit for theperiod of delay.

PAYMENT OF INTEREST ON DEPOSIT MATURING ON A HOLIDAYWhen due date of a term deposit happens to be a holiday or a non-business working day, thenyou are paid interest for the intervening holiday/non-business working day.

CONCESSIONS TO RELIGIOUS, WELFARE, SERVICE, CHARITABLE INSTITUTIONSCollection of instruments favouring religious, welfare, service and charitable institutions is done atpar. Issue of drafts, pay orders, mail/telegraphic transfers of these institutions is done at par.However, postage is recovered, institutions exempted from payment of Income Tax are onlyeligible.

CONCESSIONS TO DEFENCE PERSONNELConcessions are extended to Defence Personnels in active service only. Collection of outstationcheques/drafts, etc., as well as issue of drafts, pay-orders, mail-telegraphic transfers in theiraccount is done at par but postage is recovered.

CONCESSION TO BLIND, PHYSICALLY HANDICAPPED, DISABLED INDIVIDUALS ANDINSTITUTIONS SET UP FOR THEIR BENEFITInstitutions set up for the benefit of blind, physically handicapped and disabled individuals areallowed, collection of up-country instruments at par. Similarly, payments made by theseinstitutions to their own beneficiaries by way of drafts, pay orders, mail/telegraphic transfers areallowed, free of charge. However, postage cost is recoverable. These institutions to be eligible forconcessions should be exempted from levy of Income Tax.The individual accounts of the above categories of persons are identified by the Branch Managersat the time of opening the accounts, banking services such as issue of drafts, pay orders,mail/telegraphic transfers are rendered to the debit of the personal account only and not againstCash, Postage expenses are however recovered separately.

SENIOR CITIZENSAdditional Interest and Incentives are available for Senior Citizens. The Bank has special schemesfor the Senior Citizens, As of now, the Bank is offering extra rate of interest of 0.50% asapplicable on different maturity. They can also avail free facility of collection / remittance of fundsupto certain limit, latest details are available with the branches of the Bank.

FREE CHEQUE BOOKSFor Saving Bank Accounts of individuals’ one chequebook of 20 leaves free of charge in acalendar year shall be supplied. A service charge @ Rs. 2/- per leaf shall be levied for cheque

books supplied over and above the aforesaid limit. Service charges are subject to change withoutnotice.

TRANSFER OF ACCOUNTS IN THE BANKIf deposit account is transferred within the bank from one Branch to another and there iscontinuity in the account, then interest is payable for the transit period as well.

ADOPTION OF MODEL POLICY ON BANK DEPOSITS

The Bank has prepared and circulated a Model Policy on Bank Deposits which is a policy document ondeposit, outlining the guiding principles in respect of formulation of various deposit products offeredby the bank and terms and conditions governing the conduct of the account. The documentrecognizes the rights of depositors and aim at dissemination with regard to various aspects ofacceptance of deposits from members of the public, conduct and operations of various depositaccounts, closure of deposit accounts, method of disposal of deposits of deceased depositors etc., forthe benefits of customers. It is expected that this document will impact greater transparency indealing with the individual customers and create awareness among customers of their rights. Theultimate objective is to provides Customers the services they are rightfully entitled to receive withoutdemand.

Our Model Policy of Deposit contains the detail guidelines on the following:• Documents required to be submitted at the time of opening account – due diligence required andKnow Your Customer guidelines.

• Bank’s service charges for operation of account and for minimum balance.

• Operation of Joint Account/Minor’s Account/Accounts of illiterate and Blind persons.

• Nomination facility.

• Interest payments.

• Secrecy of customer’s account.

• Premature withdrawal/Renewal of Terms Deposit.

• Renewal of overdue Term deposits.

• Advances against deposits.

• Settlement of dues in deceased deposit account and interest payment in such account.

• Insurance cover for depositors.

• Stop payment facility.

• Treatment of dormant accounts.

• Safe deposit Lockers.

PUNJAB SIND BANK

BALANCE SHEET AS ON 31st. MARCH, 2007 (000'S OMITTED)

CAPITAL & LIABILITIES S C H E D U L E A S O N AS ON 31.03.07 31.03.06

Capital 1 7 4 3 0 5 6 0 7 4 3 0 5 6 0Reserves & Surplus 2 6 6 2 6 2 7 1 4 7 9 1 310Deposits 3 1 9 3 1 8 7 5 6 0 1 6 9 2 4 5 8 0 6Borrowings 4 2 0 5 0 7 5 6 1 9 4 7Other liabilities & Provisions 5 1 0 3 3 5 1 8 6 8 960756----------- -------------- - ----------TOTAL 219630333 190430379---------- --------------- - ----------

ASSETSCash & balances withReserve Bank Of India 6 1 0 7 4 3 9 9 4 8 3 36716Balances with banks & moneyat call and short notice 7 1 5 7 3 2 5 1 9 1 3 1 3 3 936Investments 8 6 6 9 3 0 8 2 7 6 9 5 5 5 9 8 4Advances 9 1 1 7 3 7 5 1 2 1 9 1 0 7 4 7 0 2Fixed Assets 1 0 2 5 3 0 0 5 0 2 8 4 2 2 2 3Other Assets 1 1 6 3 1 7 8 2 2 5 4 8 6 8 1 8---------- --------------- - ----------TOTAL 219630333 190430379

---------- --------------- - ----------

Contingent Liabilities 1 2 20874896 26653509Bills for Collection 4590821 5412000Significant Accounting Policies 1 7Notes on Accounts 1 8

Schedule 1 to 18 form an integral part of the accounts

Annex: Glossary

These definitions explain the meaning of words and terms used in the Code. They are not precise legal or technical definitions.

ATMAn automated teller machine [ATM] is a machine in which a customer can use their card along with PIN to get cash, information and other services.

Banking OmbudsmanAn independent dispute resolution authority set up by the Reserve Bank to deal with disputes that individuals and small business have with their banks.

CardA general term for any plastic card, which a customer may use to pay for goods and services or to withdraw cash. In this Code, it includes debit, credit, or ATM cards.

Credit CardA Credit Card is a plastic card with a credit facility, which allows you to pay for goods and services or to withdraw cash

Cheque Collection PolicyCheque Collection Policy refers to the policy followed by a bank in respect of the various local cheques and outstation instruments deposited with the bank for credit to an account . The policy interalia deals with

cheque purchase requests

time frame for credit of cheques payment of interest in case of delay in collection of cheques instant credit of local and outstation cheques cheques instruments lost in transit and charges for such collection

CustomerA person who has an account [including a joint account with another person or an account held as an executor or trustee or as a Karta of an HUF, but not including the accounts of sole traders/ proprietorships , partnerships, companies, clubs and societies] or who avails of other products/ services from a bank.

Current AccountA form of demand deposit wherefrom withdrawals are allowed any number of times depending upon the balance in the account or up to a particular agreed amount.

Deceased AccountA Deceased account is a deposit account in which case either the single account holder has deceased or in case of joint accounts one or more of joint account holders has/have deceased

Demat AccountA Demat account refers to dematerialized account and is an account in which the stocks of investors are held in electronic form.

Deposit Accounts:

"Savings deposits" means a form of demand deposit which is subject to restrictions as to the number of withdrawals as also the amounts of withdrawals permitted by the Bank during any specified period;

"Term deposit" means a deposit received by the Bank for a fixed period withdrawable only after the expiry of the fixed period and includes deposits such as Recurring / Double Benefit Deposits / Short Deposits / Fixed Deposits /Monthly Income Certificate /Quarterly Income Certificate etc.

"Notice Deposit" means term deposit for specific period but withdrawable on giving at least one complete banking day's notice;

Dormant / Inoperative AccountA dormant/inoperative account is a savings bank or current account which is not operated upon for a period specified by the bank.

EquityEquity means a part of capital of a corporate entity which is represented by the shares of the company whether in physical or in dematerialised form

Electronic Clearing SystemThe Electronic Clearing System (ECS) is an online transmission system which permits the electronic transmission of payment information by the banks / branches to the Automated Clearing House (ACH) via a communication network.

GuaranteeA promise given by a person

Government BondGovernment bond  means  a  security, created and issued, by  the  Government for  the purpose of raising a public loan.       

MailA letter in a physical or electronic form.

Nomination facilityThe nomination facility enables the bank to :make payment to the nominee of a deceased depositor, of the amount standing to the credit of the depositor, return to the nominee, the articles left by a deceased person in the bank's safe custody, release to the nominee of the hirer, the contents of a safety locker, in the event of the death of the hirer.

OriginatorAn organization, which collects payments from a customer's account in line with customer's instructions.

Other security informationA selection of personal facts and information [in an order which the customer knows], which may be used for identification when using accounts.

Out-of-date [stale] chequeA cheque, which has not been paid because the date written on the cheque is of a date exceeding six months from the time of its presentation.

PAN NumberThe Permanent Account Number is an all India unique Number having ten alphanumeric Characters allotted by the Income Tax Department, Government of India. It is issued in the form of a laminated card. It is permanent and will not change with change of address of the assessee or change of Assessing Officer.

PasswordA word or numbers or a combination or an access Code, which the customer has chosen, to allow them to use a phone or Internet banking service. It is also used for identification.

Payment and Settlement SystemsPayments and Settlement Systems mean financial system creating the means for transferring money between suppliers and user of funds usually by exchanging debits or credits among financial institutions.

PIN [personal identification number]A confidential number, use of which along with a card allows customers to pay for articles/ services, withdraw cash and use other electronic services offered by the bank.

SecurityRepresents assets used as support for a loan or other liability.

Senior CitizenSenior Citizen is a person of over sixty years of age.

Tariff ScheduleThe charges levied by a bank on the products and services offered by it to its customers

Unpaid ChequeThis is a cheque, which is returned 'unpaid' [bounced] by the bank.

Appendixes

BIBLOGRAPHY

(1) www.google.com

(2) www.krystallise.com

(3) Marketing Management by Philips Kotler

(4) PC Digest

(5) Practical Training

(6) www.yahoo.com

(7) www.rediff.com