PROJECT REPORT

On
CENTRAL BANK OF INDIA
Submitted By
RAULO RAVIKUMAR
(Roll No: 35)
SEM V, T.Y.B.B.I.
Under The Guidance Of
Dr Mrs. MEETA PATHADE
Submitted To University Of Mumbai in Partial Fulfilment of the
Requirements for the Award of Degree
Of
BACHELOR OF BANKING & INSURANCE

PATUCK GALA COLLEGE OF COMMERCE AND

MANAGEMENT
SANTACRUZ (E), MUMBAI 400055
2012-2013

Page | 1

CERTIFICATE
This is to certify that the project that the project entitled
Facilities provide by bank to import and export bank is a true
and satisfactory work done by Mr. RAULO RAVI KUMAR,
T.Y.B.B.I., Roll No. 35. The project report submitted to university
of Mumbai in partial fulfillment for the requirements of the
award of the degree of Bachelor of Banking & Insurance for
the academic year 2012-2013.

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

Signature of Project Guide

External Examiner

Signature of

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

Signature of the Coordinator

the Principal

Signature of

Page | 2

DECLARATION
I, RAULO RAVIKUMAR, student of Patuck- gala
college of Commerce & management, T.Y.B.B.I. (Sem V)
hereby declare that I have completed the project on
comparison on public sector banks vs private sector
banks in India in the academic year 2012-2013.

The subject matter contained in this project is

research work and most of the work carried out is
original and was done under the guidance of my project
guide Mrs. MEETA PATHADE

The information submitted is true and original to

the best of my knowledge.

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

Page | 3

(RAULO RAVIKUMAR)
(Roll No. 35)

ACKNOWLEDGEMENT
It is my earnest and sincere desire and ambition to acquire
profound knowledge in the study of management studies. I
have had considerable help to advice ate very outset of this
project. It is my pleasure to acknowledge the help and guidance
that I had received from those personnel and to thank them
individually.
First of all, I express my sincere thanks to Dr. (Mrs. Principal for
having given me a chance to undergo the project work.
Secondly, I convey my sincere thanks to the course coordinator
Ms. Byshi Panikar for her valuable suggestions and co-operation
which helped me to complete the project guide. I am deeply
grateful to my project guide Mrs. Meeta Pathade for her
valuable ideas, required suggestions and encouragement for
refining this project study.
Finally, I thank all the staff members and my friends for their
valuable support and contribution to my project.

Page | 4

CENTRAL BANK OF
INDIA

Page | 5

BANKING STRUCTURE IN INDIA

Scheduled banks in India
(A) Scheduled commercial banks
Public sector banks
(28)
Nationalized bank
Other public sector

Private sector banks Foreign banks in

(27)
Old private banks
New private banks

India
(29)

Regional rural bank

(102)

bank (IDBI)
SBI and its associates

(B)Scheduled co-operative banks

Scheduled urban co-operative banks (55)

Scheduled state co-operative banks (31)

Here we more concerned about public sector banks and competition among them. Today,
there are 28 public sector banks in the banking sector: 19 old private sector banks and 8 new
private sector banks.
These new banks have brought in state-of-the-art technology and aggressively marketed their
products.
The Public sector banks are facing a stiff competition from the new private sector banks.

Page | 6

ADVANCES TO WEAKER SECTIONS

During the year, the Bank has extended loans of Rs. 13214.22 crore to various categories of
weaker sections which constitutes 10.07% of ANBC, which is above the target(10%)
envisaged by Government.

ADVANCE TO MINORITY COMMUNITIES

Govt. of India in its new Prime Ministers 15 point programme for welfare of Minorities has
envisaged a target of 15% of priority sector lending to minority communities. Bank has
extended various loan facilities amounting to Rs. 6179.54 crore to541224 beneficiaries,
belonging to different Minority communities which accounts for15.16% of Priority Sector
lending as on 31.03.2012.
ADVANCES TO WOMEN BENEFICIARIES
Credit disbursement to women beneficiaries, has improved over the past year resulting the
outstanding credit to women as on 31st March 2012 at Rs. 6585.14 crore. This is 5.02 % of
ANBC as against the stipulated RBI norms of 5% of ANBC.
DIFFERENTIAL RATE OF INTEREST (DRI)
Advances under DRI scheme were Rs. 35.18 crore on 31st March 2012.
CENTRAL KISAN CREDIT CARD (CKCC)
Bank has issued Kisan Credit Cards to 1369858 beneficiaries till 31st March2012, amounting
toRs. 8428.05 Crore.

SOCIAL SECURITY SCHEMES

1. JANSHREE BIMA YOJANA
The scheme is operated in association with LIC of India to provide life insurance cover to
rural and urban poor women, who are below or marginally above the poverty line and who
are members of credit linked women SHGs of our Bank. Bank has already covered 21267
women beneficiaries with premium amounting to Rs. 21.26 lakhs during the year 2011-12.
Page | 7

2. RASHTRIYA KRISHI BIMA YOJANA

Under the scheme, cover is extended to the farmers for the losses due to on-preventable risks
like natural calamities etc. The above scheme is available throughout the country for cereals,
oilseeds in the notified states / areas.

Asset & Liability Management Systems

ALM mainly deals with measuring and managing the liquidity and Interest rate risk of the
Bank with an objective of profit maximization. ALCO (Asset & Liability Committee) met 24
times during the year to review the position of the Bank with regard to liquidity and other
related matters.
Besides regulatory reporting, ALM is also engaged in Interest determination on Deposits as
well as Base rate and BPLR fixation. ALM department presents different analysis with regard
to position of idle assets (Cashin hand, Balance with other banks etc.), rate of interest wise/
Base Rate/BPLR/ Fixed Rate wise classification of advances, comparative working results of
peer banks vis--via our bank etc. before top team for making meaningful decisions.
Implementation of Basel II Guidelines
Reserve Bank of India has issued updated master circular on implementation of the New
Capital Adequacy Framework in July 2011. As per the guidelines, the Bank has adopted
Basel 1 norms with effect from 31st March 2009 and provided capital as per Standardized
Approach for Credit Risk, Basic Indicator Approach for Operational Risk and Standardized
Duration method for Market Risk.
Bank has appointed a solution provider for implementation of the internationally reputed SAS
Risk Management solution throughout the bank to meet Basel II norms. Reserve Bank of
India has set out timelines to the commercial banks for graduation to advanced approaches.
Banks were advised to undertake an internal assessment of their preparedness for migration
to advanced approaches. Our Bank is the first among all commercial banks to have submitted
its application to RBI for graduating to The Standardized Approach (TSA) under Operational
Risk. The Bank has appointed a consultant to evaluate /assess the preparedness of the Bank
for moving to advanced approaches in respect of all risks and to enhance / Strengthen
existing Risk Management Systems, Policies, Procedures, Process, MIS, Analytics etc and
also to implement integrated risk management system in the Bank. All necessary policies
Page | 8

such as Credit Risk Management Policy, Operational Risk Management policy, Market Risk
Management Policy, Credit Risk Mitigation and Collateral Management Policy, Market
Discipline and Disclosures Policy, ICAAP etc are in place duly approved by the Board.

SUBSIDIARIES AND JOINT VENTURES

CENTBANK HOME FINANCE LIMITED
The Net Profit of the Company stood at Rs. 5.72 crore as at March 2012, as against the level
ofRs. 9.36 Crore as of March 2011. The main reason for decrease in profit ison account of
increase in cost of funds borrowed i.e. hike in Base Rate of funds lent by Central Bank of
India and overall increase in establishment and other expenses. The loan outstanding
increased fromRs. 282.13 Crore as on March 2011 to Rs. 290.30 crore as on March 2012.
The Company has consistently improved its Net Own Fund by adding Profit to the Reserves.
Net worth has gone up from Rs. 55.21 crore in March 2011 to Rs. 57.44 crore in March 2012.
Deposits from public and institutions have increased from Rs. 48.03 crore as on March 2011
toRs. 48.34 crore as on March 2012.

CENTBANK FINANCIAL SERVICES

Cent bank Financial Services Limited is essentially providing ancillary corporate financial
services. During the year 2011-12, CFSL has significantly diversified its business profile to
make CFSL a full-service investment bank. CFSL services include:
Project Appraisal and Loan Syndication
Capital market Transactions (both equity and debt)
Corporate Advisory Services including M&As and Debt Restructuring, Project Advisory,
Securitization, Risk Management, Business Valuations, Private Equity and TEVReport
Trusteeship Services including debenture/security Trustee, Executor Trustee, Managing
Charitable Trusts

Page | 9

 The company earned a Net Profit of Rs. 9.30 crore as of March 2012 against Net Profit
of Rs.7.24 crore in the previous year.

INDO-ZAMBIA BANK LTD.

The Banks Joint Venture in Zambia is promoted jointly by Government of Zambia and three
India Banks viz. Central Bank of India, Bank of Baroda and Bank of India. While each of the
3 Indian Banks hold 20% equity, Govt. of Republic of Zambia holds the balance 40%equity.
The Bank has been performing well in all parameters. While the total business of the bank
stood at Rs. 1552.70 crore. As on 31st March 2012, the Bank earned aNet Profit of Rs. 36.14
crore.

AWARDS & ACCOLADES

Bank has been ranked 4th best Public Sector Bank in India under Brand Equity-Top 100
most trusted Brands 2011" and ranked at 16thposition in 2011 under "Indias Most Trusted
Service Brands" category as per survey conducted by Economic Times.
Bank won Indira Gandhi Rajbhasha Award for successful implementation of Official
Language Policy at the hands of President Smt. Pratibha Devi Singh Patil.
Bank has received the prestigious "Golden Peacock Award 2011"instituted by Institute of
Directors (IODs) under innovative product/service category for retail product "Cent Sahyog"
for MSME segment.
Bank has been awarded as "Best BFSI Company" by Business & Economy magazine.
Bank was awarded with Exemplary Brand Leader Award for projecting excellent Brand
image in the country by Indra Group of Institute, Pune .
Bank was conferred 2 Awards for Best HR Strategies &Innovation in Employee Retention
Strategies by Greentech Foundation, New Delhi.

Page | 10

OBJECTIVES OF CENTRAL BANK OF INDIA

The Central Bank of India is one of the oldest Banks in India.

The objectives of the Central Bank of India are as follows:

To help ensure the monetary stability of the country To assist in regulating the financial system of the country,
To formulate, implement and monitor the monetary policy. - To maintain the liquidity
in the country To ensure adequate flow of credits. - Prescribes parameters for banking in the country.
Maintain public confidence in the system- To manage the foreign exchange
Management Act. - To facilitate external trade.
Issue and exchange currency Maintain supply of currency.
Own and operate the depository and exchange for government bonds.
Banker to the government

Page | 11

S.W.O.T. ANALYSIS OF CENTRAL BANK OF INDIA

Introduction to SWOT Analysis.
The overall evaluation of the companys Strength, Weakness, Opportunities and Threats is
Called as SWOT Analysis
.The external environment analysis of any business will give you the opportunities and threats
facing the business. The external environment consists of two parts:
(1)Macro Environment
: Demographic, Economic, Technology, Political-legal, Socio-cultural
(2)Micro Environment
: Customers, Competition, Distributors, Suppliers. The Internal Environment Analysis will
give you the strength and weakness of the business.
STRENGTH
Right strategy for the right products
Superior customer service v/s competitors
Great brand image
High degree of customer satisfaction
Good place to work

WEAKNESS
Some gaps in range for certain sectors
Customer service staff need training
Processes and systems etc
Management cover insufficient

OPPURTUNITIES
Profit margin will be good

THREATS
Legislation could impact

Extended to overseas broadly

New specialist applications

Great risk involved

Vulnerable to reactive attack by major

Could seek better customer deals

competitors
Very high competition prevailing in the
industry

RESEARCH METHODOLOGY
Data Collection Techniques:

Page | 12

This project consists of two parts. The first part is a study of the banking industry, Central
Bank of India using secondary data sources.
This secondary information has been sourced from the internet and from business related
magazines and news papers. The second part of the study has been done using an exploratory
research process and a structured questionnaire was developed for this purpose. For the
collection of primary data
This was the only method used. The reason I used this method is because a need was felt for
the free influx of information about the products. Also this method allowed the use of skills
gained in class.

Sampling Technique Used:

Since the information required was not of a very technical nature and also looking at the
scope of the project and the extent of the target segment, the sampling technique employed
was Convenience Sampling. I administered the questionnaires.

Sample Size:
I have restricted the sample size to 50 respondents. This was done keeping in mind the time
constraints and the fact that I felt that this number would be enough to serve the information
needs required to show the trends.

Customer satisfaction

Page | 13

Customer satisfaction is equivalent to making sure that product and service performance
meets customer expectations. It is the perception of the customer that the outcome of a
business transaction is equal to or greater than his/her expectation. Customer satisfaction
occurs when the acquisition of products and /or services provides a minimum negative
departure from expectations when compared with other acquisitions and when the marginal
utility of a transaction is equal to or greater than preceding acquisitions. Customer
satisfaction occurs when the perception of the reward from the purchase of goods or services
by the customer meets or exceeds his/her perceived sacrifice. The perception is a
consequence of matching past purchase and consumption experience with the current
purchase.

Customer service and satisfaction

When we talk about customer service and/or satisfaction, we talk about creativity. Creativity
allows us to handle or diffuse problems at hand or later on rather in the process of conducting
the everyday business. We talk about how, or what, does the organization have to do to gain
not only the sale but also the loyalty of the customer.
We want to know the payoff of the transaction both in the short and long term.
We want to know what our customers Want?
We want to know if our customers are satisfied. Satisfaction, Of course, means that
what we delivered to a customer met the customers Approval.
We want to know if customers are Delighted and willing to come
Some of the issues that will guarantee failure in sales, satisfaction, and loyalty are:
Employees must adhere to a rigid chain of command
Employees are closely supervised
Conflict in whatever form is not allowed
Rewards are based on carrot-and-stick principles
Wrong objectives are measure

Page | 14

We must understand customer expectation levels concerning quality. We must also

understand the strategy for customer service quality, and next we must understand the
measurement and feedback cycles of Customer satisfaction.
The customer is the person or unit receiving the output of a process on the system. In fact, it
is worth emphasizing that a customer can be the immediate, intermediate, or ultimate
customer. Also, a customer may be a person or persons, or a process or processes. Customer
satisfaction, however, is when the customer is satisfied with a product/service that meets the
customers needs, wants, and expectations.
There are at least three levels of customer expectations about quality:

Level 1
.Expectations are very simple and take the form of assumptions, must have, or take it for
granted. For example, I expect the airline to be able to take off, fly to my destination, and
land safely. I expect to get the correct blood for my blood transfusion and I expect the bank to
deposit my money to my account and to keep a correct tally for me.

Level 2
.Expectations are a step higher than that of level 1 and they require some form of satisfaction
through meeting the requirements and/or specifications. For example, I expect tobe treated
courteously by all airline personnel. I went to the hospital expecting to have myhernia
repaired, to be in some pain after it was done, to be out on the same day, and to receivea
correct bill. And I went to the bank expecting the bank teller to be friendly, informative, and
helpful with my transactions.
Level 3
Expectations are much higher than for levels 1 and 2. Level 3 requires some kind
of Delightfulness or a service that is so good that it attracts me to it
For example, an airline gives passengers travelling coach class the same superior food
service that other airlines provide only for first-class passengers. In fact, I once took a flight
where the flight attendants actually baked cookies for us right there on the plane. When I
went to the hospital, I expected staff to treat me with respect and they carefully explained
things to me. But I was surprised when they called me at home the next day to find out how I
Page | 15

was doing. And at my house closing, the bank officer, representing the bank holding my
mortgage, not only treated me with respect and answered all my questions about my new
mortgage, but just before we shook hands to close the deal, he gave me a housewarming gift

Customer satisfaction surveys help to:

Improve customer, client, or employee loyalty
React quickly to changes in the market.
Identify and capitalize on opportunities.
Beat the competition. Retain or gain market share. Increase revenue.
Reduce costs.

COMPANYS EFFORT TO ENSURE SATISFACTION OF CUSTOMERS

: Objectives of Central bank of India
Promote good and fair banking practices by setting minimum standards in dealing
with you
Increase transparency so that you can have a better understanding of what you can
reasonably expect of the services;
Encourage market forces, through competition, to achieve higher operating standards
Promote a fair and cordial relationship between you and your bank
Foster confidence in the banking system
To Help You to Understand How Our Financial Products and Services Work By
Giving you information about them in any one or more of the following languages:
Hindi, English or the appropriate local language.
Ensuring that our advertising and promotional literature is clear and not misleading
Page | 16

 Ensuring that you are given clear information about our products and services, the
terms and conditions and the interest rates/service charges, which apply to them
Giving you information on what are the benefits to you, how you can avail of the
benefits, what are their financial implications and whom you can contact for
addressing your queries

To Help You Use Your Account Or Service By:

Providing you regular appropriate updates
Keeping you informed about changes in the interest rates, charges or terms and
conditions.

Information
You can get information on interest rates, common fees and charges through any one of the
following:
Looking at the notices in our branches ;
Phoning our branches or help-lines;
Looking on our website;
Asking our designated staff/help desk ;or
Referring to the service guide/ Tariff Schedule.

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

Page | 17

 Give you information on any type of products and services which we offer and that
may suit your needs;
Tell you if we offer products and services in more than one way
ATM on the Internet, over the phone, in branches and so on] and tell you how to find
out more about them

Advertising, Marketing and Sales

We will make sure that all advertising and promotional material is clear, and not misleading.
In any advertising in any media and promotional literature that draws attention to banking
service or product and includes a reference to an interest rate, we will also indicate whether
other fees and charges will apply and that full details of the relevant terms and conditions are
available on request.
Information about our other products or promotional offers in respect of our
products/services, will be conveyed to you only if you have given your consent to receive
such information/ service either by mail or by registering for the same on our website or on
our phone banking/customer service number.
We have prescribed a code of conduct for our Direct Selling Agencies (DSAs) whose services
we may avail to market our products/ services which amongst other matters requires them to
identify themselves when they approach you for selling our products personally or through
phone

Page | 18

QUESTIONNAIRE
1:--WHICH OF THE FOLLOWING ATTRIBUTES COMPELLED YOU MOST TO
OPEN BANK ACCOUNT?
(a) ATM cum DEBIT Cards
(b) Cheque Book
(D) Working Hours

(c) Internet Banking/ Phone Banking

(e) Value Added Services

2:-WHICH TYPE OF SERVICE PREFERS THE MOST BY YOU?

(a) ATM SERVICE
(b) INTERNET BANKING

(c) MOBILE BANKING

(d) CORE BANKING

(e) Retail Banking

3:-WHICH OFTHE FOLLOWINGS BANKS DO YOU HAVE ACCOUNT?

(a) ICICI Bank
(b) SBI Bank

(c) HDFC BANK

(D) Central Bank of India

(e) Other Pls specify __________________

4:-WHAT TYPE OF ACCOUNT DO YOU HAVE IN BANK?

(a) Saving

(B) Current

Page | 19

(c) Fixed

(d) NRI

(e) Others Pls specify ________________________________________

5:-HOW MANY SERVICES OFFERED BY YOUR BANK?
(a) D-Mat A/C

(b)Mutual funds

(c)Instructions

(d) LI & GI

(e) Digitally Signed Statement

6:-HOW WOULD YOU KNOW ABOUT THESE SERVICES?

(a) Advertisement

(b) Friends and Relatives

(c) Direct Selling Agents

(d) Others Pls specify _______________

7:-WHAT PEOPLE THINK ABOUT THE BANKS?

(a) Necessity for protection security

(b) Imposition of a burden of expenses

(c) A compulsory tool for SAVING

8:-What a respondent see in purchase of new plan from Banks?
(a) Standing and goodwill of the company

(b) Product range of the company

(c) Advertisement being released by the company (d) Services being given by the company
9:-Is Central bank of India Provide better facilities than ICICI & HDFC Bank?
(a) Yes

(b) No

(c)Can`t Say

10:-Do you know what type of value added services provide by Central bank of India?
(a)-Young star

(b)-Senior citizen

(c)-Pre paid card

(d)-Recurring deposits

11:-How would you divide 100 points on the basis of service provide by Central bank of
India?
Page | 20

(a)-Less formality

(b)-Flexibility

(c)-Less documentation

(d)-others

12:-How would you rate services offered by Central bank of India?

(a) Extremely Satisfied

(b) Satisfied

(c) Moderate

(d) Dissatisfied

13:-WOULUD YOU LIKE ANY RECOMMENDATION TO CENTRAL BANK OF

INDIA?

Page | 21