Bank of India was founded on 7th September 1906 by a group of eminent businessmen from Mumbai. The Bank was under private ownership and control till July 1969 when it was nationalized along with 13 other banks. Beginning with one office in Mumbai, with a paid-up capital of Rs.50 lakh and 50 employees, the Bank has made a rapid growth over the years and blossomed into a mighty institution with a strong national presence and sizable international operations. In business volume, the Bank occupies a premier position among the nationalized banks. The Bank has 2528 branches in India spread over all states/ union territories including 93 specialized branches. These branches are controlled through 47 Zonal Offices. There are 19 branches/ offices (including one representative office at Jakarta, Indonesia) abroad located in 10 countries. The Bank came out with its maiden public issue in 1997. Total number of shareholders as on 31/3/2009 is 4,03,225. While firmly adhering to a policy of prudence and caution, the Bank has been in the forefront of introducing various innovative services and systems. Business has been conducted with the successful blend of traditional values and ethics and the most modern infrastructure. The Bank has been the first among the nationalized banks to establish a fully computerized branch and ATM facility at the Mahalaxmi Branch at Mumbai way back in 1989. The Bank is also a Founder Member of SWIFT in India. It pioneered the introduction of the Health Code System in 1982, for evaluating/ rating its credit portfolio. The Bank's association with the capital market goes back to 1921 when it entered into an agreement with the Bombay Stock Exchange (BSE) to manage the BSE Clearing House. It is an association that has blossomed into a joint venture with BSE, called the BOI Shareholding Ltd. to extend depository services to the stock broking community. Bank of India was the first Indian Bank to open a branch outside the country, at London, in 1946, and also the first to open a branch in Europe, Paris in 1974. The Bank has sizable presence abroad, with a network of 19 branches (including one representative office at Jakarta in Indonesia) at key banking and financial centers viz. London, New York, Paris, Tokyo, HongKong, and Singapore. The international business accounts for around 22% of Bank's total business.

Small Scale Industries.and intra-city connectivity. a Wide Area Network for providing an inter. The Bank has installed ATMs in Mumbai and other centres in the country. Commercial & Personal Banking Branches cater to the requirements of high net worth customers. as a part of enhancing its decision support system. Hi-tech Agriculture Finance. . The Bank is making a paradigm shift from branch automation to bank automation and is in the process of implementing a Multi-Branch Banking Project. Telebanking facilities with Fax on Demand facility. New facilities such as. Over 270 branches provide export credit. MIS and critical functions of controlling offices have been computerized. As on March 2012 the connectivity has been done in 5 cities DELHI. the Bank has made a good headway in bringing about technological upgradation. The expertise in this area has enabled the Bank to achieve a leading position in providing export credit in certain areas like diamond export. PUNE. Remote Access Terminals for Corporate Customers are now available at many branches. The Bank. and HYDERABAD.The Bank has a strong position in financing foreign trade. At present. NRI Branches which specially cater to the requirements of NonResident Indians. the operations at about 793 branches are totally computerized. had 93 specialized branches comprising Corporate Banking Branches to undertake very large credit business. MUMBAI. Apart from this. Overseas Branches specializing in Foreign Exchange Business. BANGALORE. the Bank also has specialized Branches for Asset Recovery. To effectively meet the ever-growing challenges and competition. Telebanking. which facilitates City-wise Connectivity of Computerized Branches. Merchant Banking etc. ATM & Signature Retrieval Systems have been introduced in a progressing manner to add value to services. The Bank has identified specialized target groups to develop core advantage for future growth. The Bank is a member of the RBI's VSAT Network and has installed 39 VSATs linking strategic branches/offices. Capital Market Branches which undertake all activities relating to capital market such as collection of applications. Another 1111 branches operate in partially computerized mode. as on March 2011. processing of refund orders. Lease Finance and Treasury. The Bank is in the process of installing BOINET.

851 crore. recording an increase of Rs . which is a five-pronged Star -. in Crore) FY 12 FY 13 % Growth 2012 2013 Operating Profit Net Profit Operating Results 1412 505 2030 851 43.90 crore respectively in the corresponding quarter a year ago. The elongated prong pointing upwards conveys the Bank's drive to achieve ascending goals. or 68.a harmonious blend of traditional and the functional. During the quarter ended March 2012.618 crore or growth of 43.719 crore and net profit at Rs.447 crore and Rs.8% over the previous fiscal. operating profit stood at Rs.283 crore as compared to Rs. Star Performance The Financial results of the Bank for the Year 2012-13 were adopted by the Bank's Board of Directors at its meeting held in Mumbai on 30th April. Likewise. Net Profit zooms to Rs.5% growth.8  Operating Profit surges to Rs.5 447 90 719 283 214 60.8 68.The Bank's corporate personality and philosophy are fully reflected in the emblem. .2030 crore. 2013 and declared the following results: PERFORMANCE HIGHLIGHTS % Growth During Quarter ended March (Rs. The Star is a beacon and guide to those in need of direction.

44491 crore.67% to 1.  Global Advances (Gross) up by 9. while Foreign Advances rose by 14.74% to reach Rs.17.02% in FY 12 to 44.2013 recording a growth of 8.6% during FY 13 as compared to 72. Domestic Advances grew by 8% to touch Rs.  Global Deposits touched a level of Rs. Return on Net worth improved significantly from 19. Domestic Deposits grew by Rs.4794 crore or 9. Likewise.72.16% over the previous year-end.17% to 2.02% at March-end 2013 from 10.  Non-Interest Income went up from Rs.  Capital Adequacy Ratio improved to 12.25% in FY13 and Operating Cost to Net Income has declined from 52.1117 crore in FY 12 to Rs. a year ago.07% in FY 12.93% to 30.35% in FY 12 to 2.43 at March-end 2013 as compared to Rs.525 crore or 47% growth.15 from Rs.79% to reach Rs.03. Earning per share (EPS) scaled to Rs.  Return on Assets has increased from 0.  Global business mix touched Rs.54.64454 crore on 31.49% in FY 12 to 44.  Cost ratios have been coming down steadily. Asset Utilisation Ratio moved up from 2.57% in FY 13.000 crore.33.65% in FY 13.54030 crore at March-end 2013. The ratio of Non-Interest Income to Net Income improved from 37.82% in FY 13.68% in FY 12 to 27.16% in FY 13. Likewise.54% and Staff Cost to Net Income declined from 36.60%.91 at March-end 2012. Book value per share has jumped to Rs. 09.68% to reach Rs. Operating Cost to average working funds declined from 2.1642 crore during FY 13 showing an increase of Rs. Likewise. Staff Cost to Average Working Funds has declined from 1.33013 crore. .78% in FY 12 to 1.11478 crore.68% at Marchend 2012.77%.7. Non-Interest income has covered the entire operating expenses almost at 99.1.

China and Ho Chi Minh city. Main Objectives of the Bank Objective of the Banking Companies (Acquisition and The Transfer of undertakings) Act.  The Bank has 2562 Branches (2541 Indian and 21 Foreign). 1970: .10 % of the Net Adjusted Credit.02% to 5. The Bank has opened 2 representative Offices. one each at Shenzhen.  Distribution of Mutual Fund Products: The Bank has tied up with DSP Merrill Lynch for selling their products of Mutual Funds through its select branches.95% of Net Adjusted Credit and Agricultural Advances of Rs. Vietnam during the year. Likewise.12546 crore as at March-end 2013 worked out to 49.4547 crore stood at 18. thereby surpassing the stipulated ratios at the national level. for selling the Life insurance products through its select branches on referral basis.59%. The Bank has 117 Specialized Branches catering to niche clientele and 124 Extension Counters in India.37% at March-end 2012 to 8. Net NPA has declined from 6.  Retailing of Government Securities: The Bank has launched jointly with the Securities Trading Corporation of India Ltd. Priority Sector Advances of the Bank at Rs. having potential of earning substantial fee income.62% at March-end 2013. (STCI) for retail sale of Government Securities through its select branches for expanding its fee income direction. New Strategies Initiated  Bank assurance: The Bank has entered into strategic alliance with ICICI Prudential Life Insurance Company Ltd.  Gross NPA has declined from 9.

coverage and organization.  Foreign Currency Loan (Against FCNR (B) Funds) . in conformity with national policy and objectives and for matters connected therewith or incidental thereto”. Could be to augment long term resources for working capital management/ acquisition and/or refinance of fixed assets/prepayment of high cost loans etc. Discounting Future Cash Flows Eligibility: High net worth corporate/non-corporate/landlords of repute with a minimum credit rating of 'A'.like augmentation of long term resources for working capital management/ acquisition and/or refinance of fixed assets/ prepayment of high cost loans/availing loan against identifiable assets without joining consortium etc. Focus is on the financial strength of the Company and the asset cover available. partnership firms or proprietorship concerns having a good track record of profits/dividend payment and market reputation. resources. with flexibility with regard to end-use of funds. Purpose: To discount future cash flows including lease rentals. and serve better. Purpose: General corporate purposes. Products & Services Corporate Loan Eligibility: High net worth corporate. the needs of the development of the economy. Minimum credit rating of 'A'. having regard to their size. General corporate purposes . in order to control the heights of the economy and to meet progressively.The main objective of the Banking Companies (Acquisition and Transfer of undertakings) Act 1970 under which the undertaking of the bank was taken over by the Central Government is as under: “An Act to provide for the acquisition and transfer of the undertakings of certain Banking Companies.

Demand Loan for purchase of new plant and machinery. Eligibility: Corporate borrowers with minimum credit rating 'A'. Can be renewed.Eligible borrowers: Export earning units and other customers with 'AAA' or 'AA' credit rating. Foreign Currency: Presently USD. having working capital limits sanctioned by banks/FIs. Dual Currency Swing Limit Scheme: A credit facility with built-in option for the borrowers to switch between foreign currency limits and rupee limits and vice-versa depending on prevailing environment. . Purpose: Working Capital. having natural hedge. if required. Customers with credit rating 'A'. Quantum: Minimum US Dollars 100.400 lakhs as per latest audited Balance Sheet. Lending only in US Dollars. Commercial Paper (A) CP Issue Eligibility: Corporate with Minimum Tangible Net Worth of Rs. Tenure: The facility is available for a period not exceeding 1 year. The borrowers will have the flexibility for conversion from USD to INR and vice-versa. acquisition of equipments and other assets.000/-.

CARE.Credit Rating: Credit rating done by Credit Rating Agencies like CRISIL. Tenor: Minimum 15 days. The bank is one of the pioneers in acting as Issuing and Paying Agent (IPA) for issuance of CP. ICRA. Charges/Fees: Commitment Charges of 1% in case of Working Capital (B) Banks as Facilitator (IPA) The Strength: With strong integrated Treasury. (NSDL) and has a chain of DPs located at the major commercial centres. Rating should be current and valid for the tenure of CP Size of Issue: To be fixed by the Board of Directors of issuing Company or the quantum indicated by the Credit Rating Agency for the specified rating. . (CDSL) and National Depository Services Ltd. Services offered: The Bank undertake all incidental services relating to issue of CP including placement. Maximum 1 year from the date of issue Denomination: Minimum Rs.5 lakhs or multiples thereof. whichever is low. The Bank is depository participant of both the depositories viz. FITCH with minimum credit rating of P2 of CRISIL or equivalent rating of CARE/ICRA/FITCH. The Bank also facilitates in obtaining Credit Rating from approved agencies and issuing CP in de-mats form. Central Depository Services (India) Ltd.

proceeds of cheque deposited at various centers within a predefined period in the fastest mode. Customers not having credit limits but maintaining satisfactorily conducted Current Account for 3 years or more. funds can be drawn upto agreed amounts.Availability of MIS report over E-Mail on a daily / weekly/monthly basis enables better control of receivable. Corporate Remote Access Fax Tele Banking (CRAFT) Facility On Demand CRAFT facility enables the corporate to download account information at their office itself/get the same through fax. with a Credit Rating of "A" and above. . Star Cash Management Services makes fund management easy by making available to the customer. They can get their account balances over Phone and can register request for cheque book.Star Cash Management Services Purpose: Speedy collection facility of local and upcountry cheques. The customers or their agents or their clients can deposit cheques at any of the Operating Branches. the Bank offer interest rate swap in which a fixed/floating interest stream can be exchanged with a floating/fixed interest stream.Even as collections are in transit. Charges: Nominal service charges and interest only for the period of actual credit availed. Funds can be made available at any of the operating Branches as per option given by the customer. Other Services Interest Rate Swaps For enabling corporate to hedge interest rate risk. Eligibility: Customers having credit limits. Salient Features: With the advent of communication facility and computer net work.

To renovate/ extend/repair existing house.00 lakh and repayment ranges up to 20 years. Self-employed persons and corporate. Aashiyana Housing Finance Schemes Eligibility: Salaried employees. b. d. To undertake repairs/renovation/extension to the residence. The loan is available at very competitive rates of Interest. Printing of statement of accounts and requisition for issuing cheque books are now rendered possible from the corporate office. Lawyers. Engineers. and professionals as also for their other bonafide purposes. at highly flexible and liberal terms & conditions. . as well as for renovation/repair and extension. To meet marriage or medical or educational expenses of family members including near relatives. Purchase of consumer durables. No prepayment/commitment charges. with a very reasonable margin and processing charges. Maximum loan amount is Rs. Purpose: To purchase/ construct house/flat. c. To take over housing loans extended by other banks/ institutions Provides loans for buying plots. To meet the credit needs of trade. Mortgage Loan Scheme Purposes: a. other general business. owning houses.50. currently available in the Industry. Professionals like Doctors.Corporate Remote Access Terminal (CORAL) Facility The Corporate can view their account information on-line from their offices without visiting the Branch. commercial activity.

etc. children. purchase of all types of consumer durables. purchase of cars Rs. Type of Loan: Demand Loan/Term Loan/Overdraft A. Purchase of new/second hand car/two wheeler. B. professionals and individuals with high networth. 10 lakh. Medical expenses incurred for self. spouse. spouse. 3. The quantum of advance varies from Rs 50. Eligibility: Salaried employees. 2. professional equipments. 2. son. dependent near relative. spouse. Purchase of consumer durables. tours and excursions.BOI Star Suvidha Personal Loan It provides Funds to meet all Personal requirements of you and your family. with a very attractive Interest rate and easy repayment plan. Education of self. depending upon the income. Repairs/Renovation/Extension of House property. Marriage expenses of self. Repayment of existing Housing Loans from other banks/Financial Institutions etc.. Bank offers loans for marriage expenses. Any other personal expenses of bonafide nature as approved by the Bank. Secured Loan 1. children. 5. 3. Clean Loan 1.000/. . 4. computers. Expenses related to Tours/Excursions of self. daughter or a dependent near relative. children within India or abroad. near dependent relatives. 4.

Document against acceptance bill. in 1997 and have launched schemes like Consignment sale of Gold and Duty-free Gold for exporters. 4. A perfect gift for the one you love.  Kissan Credit Scheme: A green card (Kisan Credit Card Scheme) has been introduced to help farmers to reap a rich harvest.Bullion Banking A. Documentary Bills.  Bill Finance Bank of India also offers Bill finance to its customers. Demand Bills. Gold coin of 10 gms. This card helps the farmer to raise short-term funds For Agriculture/Other farmbased activities. Gold loan scheme The Bank is one of the first to enter into Bullion Banking Business. Usance Bills. have launched the millennium Gold Coin. BOI offers both Inward and Outward bills. The Bank offer post-sale credit against bills. . on an on-going basis. which include: 1. Millennium Gold Coin Bank of India. after it was permitted by Govt. The Bank collect bills on behalf of customers. Inland / Foreign Bills.9 purity) at a very reasonable price are available for sale at the select branches. 6. B. (999. Other value-added products such as "Bullion Loan" and "Gold deposits" have also been introduced at the select branches. a pioneer in Bullion Banking business. 5. with very flexible and friendly Repayment terms. 3. 2. Document against payment bill.

2. Advances against incentives receivable from the Govt. security and margin. The Bank extends two types of Export Finance. Performance Guarantee and Financial Guarantee. Bank Guarantee Bank of India.Sector Organizations. Advances against duty-drawback. Public. Pre-Shipment Finance. in favour of third parties like Government Departments. BoI issues both types of Guarantees viz. Packing Credit in Foreign Currency. Negotiation / payment / acceptance of documents under L/C. The type of Guarantee. Advances against Export Bills sent for collection. Export Finance BOI is a pioneer in Export Finance. on behalf of their customers. . issues Bank Guarantees. Pre-Shipment Finance: Packing Credit in Rupees. Post-Shipment Finance: Purchase and discount of Export Documents under confirmed orders. 1. 1. Post-Shipment Finance. Export Bills rediscounted in Foreign Currency. track record of customers and their financial position are the guiding factors in deciding the Guarantee limit. etc. 2.

Purpose: Working Capital or demand loan for acquisition of business asset. **Corporate are rated as per internal credit rating system devised by the Bank taking into consideration various relevant parameters.00% *Rates are subject to revision from time to time as per directives of RBI/Bank. Bank of India issues a range of card products. i) INDIA CARD ( Master Card) ii) INDIA CARD ( Visa Gold) iii) BOI NAVY CLASSIC (Master Card) iv) BOI NAVY GOLD (Master Card) v) TAJ PREMIUM CARD (Master Card) vi) ATM INDIA CARD .5% b. BOI Prime Lending Rate (PLR) 11.  Depository Services Aim: Add Speed. BOI Prime Term Lending Rates (PTLR) 12. accuracy and Transparency in the securities settlement mechanism and cut transfer cost at the same time. anytime and anywhere. Interest Rates on Advances a. Salient Features: Materialization/ Dematerialization  Credit Cards Bank of India's range of Card Products is an open line of credit and a useful source of cash.

very soon.  Deposit schemes The Branches have facilities to open various types of Deposit accounts. Gold Card Other Additional Benefits: Bank of India offers a UNIQUE SECURITY PLAN in collaboration with the Oriental Insurance Company Ltd. benefit upto Rs. at a discounted premium exclusively for its CARD HOLDERS.on Mediclaim insurance premium. beginning with Hyderabad-Mumbai connectivity. This facility will be extended to all Branches within Hyderabad city.0 lakh. Mediclaim & accident insurance at Lower Premium for all Credit Card holders and their family members.per day from any of the 380 ATMs of Swadhan Network in India including 185 ATMs in Mumbai. NRE. 5000/.0 lakh.  ATM / Swadhan Cards Bank of India is one of the main participants in the Indian Bank's Association's Swadhan ATM Network in Mumbai. NRO) . Personal accident insurance covers upto Rs. Further. Mediclaim cover upto Rs. Presently Swadhan cards are issued to valued customers of the Mumbai Branches only.10. an interconnected ATM Network for three Branches at Hyderabad has already been operationalised.6. 000/.. Savings Bank (Domestic. The ATM cardholders of Mumbai Branches can withdraw cash upto Rs. 100% Income. Bank also proposes to provide inter-city connectivity of ATMs.

April.e.1 crore and thereafter-in multiples of Rs. 1st of January. Term Deposits Double Benefit Deposit Fixed Deposit Receipt Short Deposit Receipt Quarterly Income Certificate Monthly Income Certificate Recurring Deposit BOI Star-92 (Flexible fixed deposit scheme) Mamta Deposit Scheme (A long term recurring deposit scheme for your girl child) Star Suvidha. 000/= Period of deposit one year (fixed) Interest rate on deposit 0.Current account. July and October .10.25% more than the yield rate on 91 days treasury bill Re-pricing dates: Interest will be re-set effective first day of every calendar quarter i.  BOI Floating Rate Deposit Schemes Objective: To optimize returns on high value deposits by permitting the depositor to have the benefit of market-related interest rates Minimum amount of deposit Rs.

requisition for chequebooks. at a reasonable cost. S. Telebanking & Fax on Demand: BOI offers Telebanking and Fax on demand facilities to its customers. 3. for enquiring the balances in their accounts.  BOI Medi Mobile Schemes Specifically for medical practitioners / dentists for purchase of vehicle of their choice up to a maximum limit of Rs. thereby providing cost-effective financial processing and communication services of assured quality.T BOI also facilitates services to its customers through S. reliability for International fund transfer .00 lakh.W.I.F. at a very reasonable charge. speedier release of funds and profitable funds management. This facility is currently available at 188 of the Fully Computerised Branches. 2.F.  Safe Deposit Vault/Safe Custody Services BOI also offers safe deposit Lockers and safe custody services to its customers through its large number of branches. integrity. The facilities offered are query on balances in their accounts. Star Cash Management A cash management product specifically for Corporate Customers.I.  Technology Products / Services 1. Corporate Remote Access Terminal: BOI offers Banking facility to its Corporate Clientele from the comforts of their offices/house on their PCs. Statements of account etc. free of cost to the customers. making requisition for cheque books and having Statements of account on fax. All these facilities are offered at a very reasonable cost.T (Society for World-wide Inter Bank Financial Telecommunications).W. which offers fast track cheque collections.5.

ECS is also a preferred method of credit in respect of dividend warrants.I. credit card bills etc. Regardless whether the bank is open or not! And regardless whether you are in the same city as your branch or not! The Bank of India ATM Card would allow you access to your account from any of the ATMs of Bank of India as well as the ATMs of other banks through the SWADHAN network The Bank of India ATM Card currently comes to you absolutely free when you open a Savings Bank/Current Deposit/Overdraft account in their single names. Bank of India Launches the Online ATM Card Bank of India has launched an online ATM Card. all seven days of the week. pension etc. Similarly. 6. This card is a convenient way to carry out your banking transactions round the clock . There are currently 75 branches / offices of the Bank on S. (domestic and foreign centres) 4. refund orders. and OD accounts to your Bank of India ATM Card and withdraw cash. 5. ATM BOI offers its customers round-the-clock banking services through its network of 48 ATMs throughout the country.and other financial transactions. interest warrants. You can link your SB. corporate bodies. faster and easier method of effecting repetitive payments by direct debit to the customers' account in case of utility payments. at a very nominal service charge. salary. or those. Electronic Clearing Service (Debit & Credit) BOI offers its customers. However. any hour of the day or night. Electronic Funds Transfer BOI offers its customers an easy mode of Inter Bank. firms and legal entities. Inter-city transfer of domestic funds between metros and select major cities within 24-hours.W.F. which they operate under their single signatures. cards will not be issued to minors. .T network.

2012. Nomination Facility: The depositors can nominate any relative to receive the balance outstanding in his credit.Deposit Schemes For Senior Citizens Senior Citizens: One who has completed 60 Years of age. Interest Rate on Deposits: 0. and. On production of the proof of death of the depositor. Spouse need not be senior citizen. The first deposit holder should necessarily be Senior Citizen. banks have been advised to provide information on effective annualised rate of return on deposits of various maturities.  Non-Resident Indians Non Resident Indians (NRI s) have a choice of two schemes for depositing their savings with Bank of India. The brief comparative features of the two schemes are: Particulars: FCNR and NRE . by the relative so nominated. These are: Foreign Currency Non Resident (FCNR) accounts Non-Resident External (NRE) accounts. Accordingly. In terms of RBI’s monetary and credit policy for 2011-12 announced on April 29.5% higher than the applicable rate for the period of ONE-YEAR AND ABOVE. the effective annualised rate of return on Bank’s cumulative deposit schemes under the Reinvestment Plan on quarterly compounding basis. The joint account holder may be Spouse.

000EUR 1. Renewals Deposit receipt to be submitted duly discharged within 14 days from date of maturity for retrospective renewal – alternatively renewal will be with simple interest from maturity date . GBP. Type of account Term deposits "Savings.Who can open accounts NRI s. JPY Indian Rupees Reparability: Principal and interest reparable . Current and Term deposits “ Period 12 months to 3 years 6 months to 7 years Minimum amount: USD 1. Compulsory with ARS Available on request. Automatic renewal facility (ARS) Available on signing of ARS agreement Safe custody facility Available on request.500GBP 1.Taxation (Indian taxes) Exempt from income and wealth tax Exempt from income and wealth tax. OCB s Joint accounts of two or more NRI s Permitted Joint account with Residents Not permitted Nomination facility available Currency of account USD.000. Liquidity Easy pre-mature encashment facility. EUR.500JPY 50.

which is a ATM cum Debit Card.  Star SSI Supreme: Short-term finance to "AAA" and "AA" rated SSI borrowers with good track record at attractive rates.  BOI Star Mortgage Loan: A retail product against mortgage of property.added product launched by the Bank for providing operational flexibility with optimisation of earnings on the short-term surplus funds of high-value current account customers. These are subject to change without notice.  ATM cum Debit Card: The Bank has launched Visa Electron Debit Card. Credit Products  Line of Credit: For Corporate and Export credit sector envisaging identification of the prospective clients and In-principle sanction of line of credit.  Multi-city Cheque Facility: The instrument launched by the Bank is payable at par at Branches of the Bank at its Multi Branch Banking (MBB) Centres and is available to high-value current deposit account customers. New Products Launched Deposit Products  BOI Current Deposit Plus Account: A value. .to renewal date Deposit receipt to be submitted duly discharged within 14 days from date of maturity for retrospective renewal – alternatively renewal will be with simple interest from maturity date to renewal date Rules governing Non-Resident deposits are guided by regulations of Reserve Bank of India and rules formulated by the Bank from time to time.

the number of on-line ATMs are over 1000.  Implementation of a core banking solution is in the offing. About 25 more Kiosks will be introduced. Remaining 380 infrastructurally suitable Branches will be computerised in FY 13.  275 networked Branches in 9 cities providing Multi Branch Banking. . The Bank's own on-line ATMs are being increased to 325 by the year-end. which is being extended to another 450 Branches at 21 centres.  Mobile ATM introduced at Mumbai.  121 on-line ATMs of the Bank are in operation and with about 900 "Swadhan" ATMs.  An integrated communication corporate backbone networked system for the Bank is being created. Major IT initiatives implemented in FY 13 / being introduced are as under:  2155 Computerised Branches capturing 91% of Domestic business. More Mobile ATMs to be introduced. Sharing of ATM network with 4 other Banks is also finalized.  Creation of a central hub at Singapore for all Foreign centers introducing common standard software.  Kiosks with Passbook printing facility have been installed at select Branches in Mumbai.  Internet banking available at 8 NRI Branches being extended to all the networked branches.Technology Savvy initiatives The Bank has a comprehensive technology up gradation plan and is continuously implementing new IT initiatives to be a technology savvy modern global Bank.  SMS banking introduced at Hyderabad and Secunderabad being extended to all the networked branches.

“It (credit) is an exchange which is complete after the expiry of a certain period of time after payment”. The Bank's Head Office shifted to its own state-of-the-Art Building "Star House" at Bandra-Kurla Complex. Business process outsourcing in non-core areas like Human Resources. ‘I believe’. faith or confidence. Actually it means the postponement of payment. 2. Bimal Jalan. In the words of Prof. Definitions of Credit: In the words of Prof. Gide. Cole. The word ‘Credit’ has been derived from the Latin ‘Credo’ meaning. Introduction to Credit Credit in its literal sense means trust or confidence. The formal inauguration is on 1st May 2013 by Hon'ble Dr. former Governor. Reserve Bank of India. This also shows that credit has no existence without belief. Basis of Credit: Credit involves three essentials. money or services in the present and believes sometime in the future. Mumbai. Credit is an act of exchanging in which the creditor delivers certain goods. “Credit is purchasing power not derived from income but created by financial institutions either as an offset to idle incomes held by depositors in the banks or a net addition to the total amount of purchasing power”. Exchange or transfer of value Time Confidence – Confidence both in the integrity and capacity of the borrower . They are 1. 3.

Banks also supply short-term finances. Forms of Credit: 1. Capacity 4. Bonds. promissory notes. Confidence 2. Amount of the debt 6. The borrower can draw the amounts as and when he needs. private credit is very essential. Period of credit Kinds of Credit: Credit may be classified into two broad categories: Public Credit: Public credit includes all loans and advances which are extended to government. Trade bills. Cash Credit: Cash Credit is a kind of running account opened by the bank for a borrower. hypothecation or collateral security. Private Credit: Private credit includes all advances of credit to individuals. Debtors capital and property 5.Characteristics of Credit: 1. Generally. bank gives credit accommodation on pledge. hundis. certificates and similar government securities usually represent such credits. For modern business. shares. etc represent such credits. . Interest is charged on the amount actually drawn. a firm can get credit instruments like bills of exchange. partnership firms and joint stock companies. Character 3. Under short-term financial arrangement. municipalities and other local bodies. debentures. notes. promissory note or hundies discounted at a price lower than the face value and thus obtain an unsecured loan from the bank.

Consumers Credit: retailers for selling consumer durables like Television sets. When credit is extended for a period of more than five years. This loan is granted for period of less than a year. which. In the words of Macleod. Its need arose only when people adopted division of labour and large-scale production. are primarily used for commercial purposes are known a commercial credit instruments. 4. It provides a convenient and economical means of exchange by supplementing other forms of money. It facilitates trade and provides Provision of funds is essential for every type of domestic trade. payment of wages etc. ex: purchase of raw materials. Washing machines etc. This type of credit is generally related to the current operation of a business. In the modern money-using economy. necessary lubrication to its mechanism. it is known as long-term credit. Generally long-term capital is required for investment purpose. Role of Credit in modern business Finance is the life-blood of modern commerce. What the differential Calculus is in Mathematics. finance may be defined as the provision of money at the time it is wanted. Extension of buildings and plants are generally financed with the help of long-term credits and loans. Economic Significance of Credit In days of self-sufficiency there was no question of credit. It has now become international in character and forms the foundation of the modern economy. ‘What the steam engine is in mechanism. It is known as short-term credit. 3. Electric fans. Furniture. Bank drafts. Some of the services of credit rendered to the economic system are: 1. generally use it. Investment Credit: This credit is granted for investment purpose. bills of exchange and promissory notes are the examples of commercial credit. Commercial Credit: Short-term credit (or) Credit instruments. Success of a business today depends upon the credit and borrowing abilities of a businessman. that is credit in Commerce. Refrigerators. .2.

3. It facilitates production and exchange. Influence on output and employment. Conceals financial weakness. It facilitates development of large-scale enterprises and industry. 6. 10. Leads to inflation. 3. Proper utilization of National resources. 9. It exchange of commodities and services are possible without making payment in cash 8. Leads to monopoly. It encourages wastefulness on the part of individuals. 4. 5. 5. commercial concerns and government. It increases consumption and raises standard of living. 2. 4. 7.2. It makes possible the optimum utilization of capital. RBI Credit Control Quantitative Controls: . It encourages capital formation. Credit transactions are easier. Competition and exploitation. Dangers of Credit 1.

corresponding variation in the market value. it may purchase the securities in the open market. banks cannot lend to the extent of the full value of the securities. On the other hand. When a Central Bank intends to restrict the volume of credit. The Central Bank may alter the cash reserve by changing or varying the reserve ratio. Forms of Selective Control: 1) Margin requirements: This method aims at regulating the supply of credit for speculative purposes. In India. qualitative controls have been used to prevent speculative hoarding of commodities like food grains and essential raw materials to check inflationary trends. It controls the quality of bank credit. it may sell the securities in the open market.(1) Bank Rate Policy: Bank rate is one of the oldest instruments of credit control used by the central bank. it will lower the reserve ratio Qualitative Controls (selective controls): These methods control the distribution of bank credit in a particular direction. (3) Variations of Cash Reserves: Under this method. it will raise the reserve ratio. the Central Bank is authorized to change the minimum cash reserve to be maintained by the commercial banks with the central bank. When the central bank desires to contract the credit. With the increased reserve ratio banks will have to deposit more cash with the central bank. To that extent their cash reserves are reduced. When margin requirements are fixed. A fall in the bank rate results in encouraging business people and investors to borrow more and there is an expansion of credit. Variations in the bank rate are followed by . Rise in the bank rate will discourage business people and investors to borrow from the banks. When the Central Bank desires to reduce the credit-creation by the commercial banks. if the Central Bank intends to expand the credit. If the Central bank desires to expand credit. it raises the bank rate. The customers and the banks buy these securities and to that extent cash with the commercial banks is reduced. (2) Open Market Operations: This method implies the purchases or sale of securities by the central bank with a view to expanding or contracting credit. where by more funds would be released into circulation.

the Reserve Bank of India has been making use of this method of margin requirements especially in case of advance against food grains. the consumers arrange to purchase these commodities through bank credit repayable in Installments. sugar. oil-seeds. Therefore. televisions sets. . are costly and an average consumer is not in a position to purchase them by paying a lumpsum amount. refrigerators. air-conditioning etc. etc.To prevent hoarding and speculative dealings in essential commodities. The durable commodities like cars. 2) Consumer Credit Control: Another method of selective credit control is to regulate the credit granted to the consumers to enable them to buy certain durables commodities..

Sign up to vote on this title
UsefulNot useful

Master Your Semester with Scribd & The New York Times

Special offer for students: Only $4.99/month.

Master Your Semester with a Special Offer from Scribd & The New York Times

Cancel anytime.