UNIVERSITY OF MUMBAI

PROJECT ON:
FUNCTIONS OF BANK OF INDIA


MASTER OF COMMERCE (BANKING & FINANCE)
SEMESTER I
2013-2014

IN PARTIAL FULFILMENT OF THE REQUIREMENT UNDER SEMESTER
BASED CREDIT & GRADING SYSTEM FOR POST GRADUATE
Program under faculty of commerce
SUBMITTED BY:
ABHIJAY SAVE
ROLL NO: 235
PROJECT GUIDE:
Dr.Tukaram B.Gadhave (MCom , BEd, MPhil, PhD)


SEPT 2013
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DECLARATION
I Abhijay Save the student of MCom BANKING & INSURANCE 1
ST
SEMESTER (2013-
2014), hereby declare that I have completed the project on Functions of Bank of India.
The information submitted is true and original to the best of my knowledge




Signature of student:

____________
Abhijay Save
Roll No: 235

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CERTIFICATE
This is to certify that Abhijay Save of MCom (Banking & Finance) Semester-I (2013-2014)
has successfully completed the Project on Functions of Bank of India under the guidance
of Dr.Tukaram B.Gadhave
1) Project Guide:___________________


2) Course Coordinator:__________________


3) Internal Examiner: ____________________

4) External Examiner: _____________________


5) Principal: __________________




DATE: __________
PLACE: MUMBAI





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ACKNOWLEDGEMENT

I would firstly like to thank the UNIVERSITY OF MUMBAI for giving us the liberty of
choosing such topic which will be benefited to us in future. I would like to thanks the
Principal of Sydenham College Dr.Shri Madhuri Kagalkar for giving me the opportunity to
study in this esteemed college and doing the course of Banking and Finance. I would like to
express my sincere gratitude and thanks to Dr.Tukaram B.Gadhave who is my project
guide, as he has been the guiding light for this project and has also provided me with the
best of my knowledge, advice and encouragement which helped me in successful
completion of my project.
My colleagues and specially my parents who have also supported and encouraged me, the
success of this project to the large extent is also dedicated to them.
I would also like to thank all those who have helped me and whom I have forgotten to
mention in this space.









SIGNATURE OF STUDENT:

________________________


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Executive Summary
The study is done to find the functioning of Bank of India. The classification of its product
profile and its competitiveness. The balance sheet of the bank was analyzed and compared
with the past year balance sheets and ratio analysis was done to find the profitability,
liquidity and leverage ratios. The project and the study were guided throughout by experts in
specific areas.
A thorough industrial analysis comprising with the company profile is done. The project was
also on the basis of some of the valuable inputs from the customers of the particular bank to
find out the positioning of the banks service. The study was done on some of the randomly
selected branches. The bank is much more customer service oriented and the workforce
present is much impressive. The product profile of the bank is also impressive where it is
covering all the sections and places in the society. The banks are also high on practicing
corporate social responsibility. It was also seen that the bank is very much concentrating in
the print-advertisement section and also customer call service. Its increasing number of
branches across India was showing the progress of the bank.

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Index
Sr. No. Topic Pg. No.
1. Industry Profile 6
2. Background 9
3. Corporate Services 13
4. Rural Services 17
5. Retail Services 23
6. Cards 30
7. Conclusion 34
References 35


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Industry Profile
Overview
Banking in India has a long and elaborate history of more than 200 years. The beginning of
this industry can be traced back to 1786, when the countrys first bank, Bank
of Bengal, was established. But the industry changed rapidly and drastically, after the
nationalization of banks in 1969. As a result, the public sector banks began experiencing
numerous positive changes and enormous growth. Then came the much-talked-
aboutliberalization and economic reforms that allowed banks to explore new businessopport
unities and not just remain constrained to generating revenues from mere borrowing
and lending. This provided the Indian banking scenario a remarkable facelift that only
continues to get better with time. However, even today, despite the foray of foreign banks in
the country, nationalized banks continue to be biggest lenders in the country. This is
primarily due to the size of the banks and the penetration of the networks.
Nature of the Industry
Banks safeguard money and valuables and provide loans, credit, and payment services, such
as checking accounts, money orders, and cashiers checks. Banks also may offer investment
and insurance products, which they were once prohibited from selling.
As avariety of models for cooperation and integration among finance industries haveemerge
d, some of the traditional distinctions between banks, insurance companies, andsecurities
firms have diminished. In spite of these changes, banks continue to
maintainand perform their primary role
accepting deposits and lending funds from thesedeposits.There are several types of banks,
which differ in the number of services they provide and the clientele they serve. Although
some of the differences between these types of banks have lessened as they begin to expand
the range of products and services they offer, there are still key distinguishing traits.
Commercial banks
which dominate this industry, offer a full range of services for individuals, businesses, and
governments. These banks come in a wide range of sizes, from large global banks to
regional and community banks. Global banks are involved in international lending and
foreign currency trading, in addition to the more typical banking services. Regional banks
have numerous branches and automated teller machine (ATM) locations throughout a multi-
state area that provide banking services to individuals. Banks have become more oriented
toward marketing and sales. As a result, employees need to know about all types of products
and services offered by banks. Community banks are based locally and offer more personal
attention, which many individuals and small businesses prefer. In recent years, online
banks which provide all services entirely over the Internethave entered the market, with
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some success. However, many traditional banks have also expanded to offer online banking,
and some formerly Internet-only banks are opting to open branches.
Savings banks and savings and loan associations
sometimes called thrift institutions, are the second largest group of depository institutions.
They were first established as community-based institutions to finance mortgages for people
to buy homes and still cater mostly to the savings and lending needs of individuals.
Credit unions
are another kind of depository institution. Most credit unions are formed by people with a
common bond, such as those who work for the same company or belong to the same labour
union or church. Members pool their savings and, when they need money, they may borrow
from the credit union, often at a lower interest rate than that demanded by other
financial institutions.
Federal Reserve banks
are Government agencies that perform many financial services for the Government. Their
chief responsibilities are to regulate the banking industry and tohelp implement our Nations
monetary policy so our economy can run more efficiently by controlling the Nations money
supplythe total quantity of money in the country, including cash and bank deposits.
For example, during slower periods of economicactivity, the Federal Reserve may purchase
government securities from commercial banks, giving them more money to lend, thus
expanding the economy. Federal Reserve banks also perform a variety of services for other
banks. For example, they may make emergency loans to banks that are short of cash, and
clear checks that are drawn and paid out by different banks. Interest on loans is the principal
source of revenue for most banks, making their various lending departments critical to their
success. The commercial lending department loans money to companies to start or expand a
business or to purchase inventory and capital equipments. The consumer lending department
handles student loans, credit cards, and loans for home improvements, debt consolidation,
and automobile purchases. Finally, the mortgage lending department loans money to
individuals and businesses to purchase real-estate. The money to lend comes primarily from
deposits in checking and savings accounts certificates of deposit, money market accounts,
and other deposit accounts that consumers and businesses set up with the bank. These
deposits often earn interest for the owner, and accounts that offer checking provide an easy
method for making payments safely without using cash. Deposits in many banks are insured
by the Federal Deposit Insurance Corporation, which ensures that depositors will get their
money back, up to a stated limit, if a bank should fail. Technology is having a major impact
on the banking industry. For example, many routine bank services that once required a teller,
such as making a withdrawal or deposit, are now available through ATMs that allow people
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to access their accounts 24 hours a day. Also, direct deposit allows companies and
governments to electronically transfer payments into various accounts. Further, debit
cards, which may also be used as ATM cards, instantaneously deduct money from an
account when the card is swiped across a machine at a stores cash register. Electronic
banking by phone or computer allows customers to pay bills and transfer money from one
account to another. Through these channels, bank customers can also access information
such as account balances and statement history. Some banks have begun offering online
account aggregation, which makes available in one place detailed and up-to date information
on a customers accounts held at various institutions. Advancements in technology have also
led to improvements in the ways in which banks process information. Use of check imaging,
which allows banks to store photographed checks on the computer, is one such example that
has been implemented by some banks. Other types of technology have greatly impacted the
lending side of banking. For example, the availability and growing use of credit scoring
software allows loans to be approved in minutes, rather than days, making lending
departments more efficient. Other fundamental changes are occurring in the industry as
banks diversify their services to become more competitive. Many banks now offer their
customers financial planning and asset management services, as well as brokerage and
insurance services, often through a subsidiary or third party. Others are beginning to provide
investment banking services that help companies and governments raise money through the
issuance of stocks and bonds, also usually through a subsidiary. As banks respond to
deregulation and as competition in this sector grows, the nature of the banking industry will
continue to undergo significant change.
Structure
The Indian banking system can be classified into nationalized banks, private banks and
specialized banking institutions. The industry is highly fragmented with 30 banking units
contributing to almost 50% of deposits and 60% of advances. The Reserve Bank of India is
the foremost monitoring body in the Indian Financial sector. It is a centralized body that
monitors discrepancies and shortcomings in the system. Industry estimates indicate that out
of 274 commercial banks operating in the country, 223 banks are in the public sector and 51
are in the private sector. These private sector banks include 24 foreign banks that
have begun their operations here. The specialized banking institutions that include
cooperatives, rural banks, etc. form a part of the nationalized banks category.

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Background
Origin of the word
The name bank arrives from the Italian word banco which means "desk or bench", used
during the Renaissance by Florentine bankers, who used to make their transactions above a
desk covered by a green tablecloth. However, traces of banking activity can found even in
ancient times. In fact, the word traces its origins back to the Ancient Roman Empire, where
moneylenders would set up their stalls in the middle of enclosed courtyards called macella
on a long bench called a bancu, from which the words banco and bank are derived. As a
moneychanger, the merchant at the bancu did not so much invest money as merely convert
the foreign currency into the only legal tender in Rome- that of the Imperial Mint.
Scope
The Banking sector is considered the most lucrative option in todays job market. In the
industry, a position in Treasury or Forex is considered right on top and this is followed by
careers in Private Banking, Investment Banking and Retail Banking. One could work in a
variety of areas in banking industry including Recurring Deposit account, bankingofficer, pr
obationary officer, loan officer, assessor, personal loan officer, home loan officer, home loan
agent, loan manager, mortgage loan underwriter, loan processing officer, accountant,
product marketing and sales executive, and customer service executive among others. In the
Financial Services, some of the important jobs include that of a stockbroker who is
essentially a person who buys and sells securities on behalf of individuals and institutions
for some commission. While some brokers like to practice with individual client
otherswork for institutions. Brokers who work for institutional investors are often called
securities traders. Many prefer to work as dealers, advisors and securities analysts. Security
analysts are those who advise companies on floatations of shares as they are expected to
have sound knowledge of capital markets. Investment analysts are the backbone of the
financial services sector.

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Introduction to BIO
History
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
nationalised 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 nationalised banks.

The Bank has 4467 branches in India spread over all states/ union territories including
specialized branches. These branches are controlled through 50 Zonal Offices. There are 54
branches/ offices and 5 Subsidaries and 1 joint venture abroad.

The Bank came out with its maiden public issue in 1997 and follow on Qualified Institutions
Placement in February 2008. . Total number of shareholders as on 30/09/2009 is 2,15,790.

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 nationalised banks to establish a fully
computerised 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.
Presently Bank has overseas presence in 20 foreign countries spread over 5 continents
with 53 offices including 4 Subsidiaries, 4 Representative Offices and 1 Joint Venture, at
key banking and financial centres viz., Tokyo, Singapore, Hong Kong, London, Jersey, Paris
and New York.

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Need and objective of the Code
Clause 49 of the Listing Agreement entered into with the Stock Exchanges, requires, as part
of Corporate Governance, the listed entities to lay down a Code of Conduct for Directors on
the Board of an entity and it Senior Management Accordingly the Bank has laid down this
Code for its Directors on the Board.
Bank's belief system
This Code of Conduct attempts to set forth the guiding principles on which the Bank shall
operate and conduct its daily business with its multitudinous stakeholders, government and
regulatory agencies, media, and anyone else with whom it is connected. It recognises that
the Bank is a trustee and custodian of public money and in order to fulfil its fiduciary
obligations and responsibilities, it has to maintain and continue to enjoy the trust and
confidence of public at large.
The Bank acknowledges the need to uphold the integrity of every transaction it enters into
and believes that honesty and integrity in its internal conduct would be judged by its external
behaviour. The Bank shall be committed in all its actions to the interest of the countries in
which it operates. The Bank is conscious of the reputation it carries amongst its customers
and public at large and shall endeavour to do all it can to sustain and improve upon the same
in its discharge of obligations. The Bank shall continue to initiate policies, which are
customer centric and which promote financial prudence.
Philosophy of The Code-
The Code envisages and expects
The Bank expects all Directors to exercise good judgement, to ensure the interests, safety
and welfare of customers, employees, and other stakeholders and to maintain a cooperative,
efficient, positive, harmonious and productive work environment and business organization.
The Directors while discharging duties of their office must act honestly and with due
diligence. They are expected to act with that amount of utmost care and prudence, which an
ordinary person is expected to take in his/her own business. These standards need to be
applied while working in the premises of the Bank, at offsite locations where the business is
being conducted whether in India or abroad, at Bank-sponsored business and social events,
or at any other place where they act as representatives of the Bank.


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a. adherence to the highest standards of honest and ethical conduct, including proper
and ethical procedures in dealing with actual or apparent conflicts of interest
between personal and professional relationships.
b. full, fair, accurate, timely and meaningful disclosures in the periodic reports required
to be filed by the Bank with government and regulatory agencies.
c. compliance with applicable laws, rules and regulations.
d. to address misuse or misapplication of the Bank's assets and resources.
e. the highest level of confidentiality and fair dealing within and outside the Bank.

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Corporate Services
BOI provides a lot of services to the corporate. These are the most profit giving customers.
Few services are given in the table below and explained further.



Cash management service
A cash management product specifically for Corporate Customers, which offers fast
track cheque collections, speedier release of funds and profitable funds management,
at a reasonable cost.

For eligibility norms, terms and conditions and further details, please call on any of
our Corporate Banking Branches at Mumbai, New Delhi, Chennai, Kolkata,
Bangalore, Pune, Ahmedabad and Nagpur.

Corporate
Cash
Management
Service
Project Finance
& Syndicate
Services
Loans Trade Finance
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Project finance & syndicate services
Bank of India is one of the leading players in the Syndication space. Our Project
Finance & Syndications Group is engaged in Debt Syndication and arranges debt
through Syndication/Underwriting. Over the last few years, the bank has successfully
completed several Syndication & Underwriting assignments of major industrial
houses in diverse sectors and has established itself in the Project Finance and
Syndication business.

We have skilled and experienced team, having vast experience in carrying out TEV
study and capabilities of successfully managing project finance transactions, backed
by our vast network of domestic and foreign branches.

Services Offered :
We offer syndication services to corporate engaged in infrastructure development
viz. road, port, power, telecom, logistics etc. as well as to those in the manufacturing
sectors viz. steel, cement, sugar etc.
Syndication services can be availed for:
Long Term Loan
Working Capital: Fund & Non-Fund based
Bridge Finance
Acquisition Finance
Refinancing
The loans may be in the form of INR, ECB and FCL on plain vanilla or structured
basis.
During the calendar year 2010 and 2011, bank has achieved the top position in
syndication among the public sector banks as per Bloomberg.

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Loans
Bullion banking
Our Bank is a nominated agency for bullion business since 1997. We are selling gold
to Jewelry Manufacturer Exporters located in SEEPZ, Mumbai.
Gold is sold in KG bars to the Jewelry exporters under Two schemes:
Outright sale - Jewelry Manufacturer Exporters can purchase gold on outright
basis.
Bullion Loan Scheme for Exporters - Jewelry Manufacturer Exporters can
purchase gold on loan basis at competitive terms.
The sale is subject to the rules and regulations prescribed by Reserve bank of India
from time to time.
Export Finance
BOI is a pioneer in Export Finance. We extend two types of Export Finance.
Pre-Shipment Finance :-
Packing Credit in Rupees.
Packing Credit in Foreign Currency.
Advances against incentives receivable from the Govt.
Advances against duty-drawback.

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Post-Shipment Finance :-
Purchase and discount of Export Documents under confirmed orders.
Payment / acceptance of documents under L/C.
Advances against Export Bills sent for collection.
Export Bills rediscounted in Foreign Currency.
Channel credit
Sponsoring Corporate can be a Manufacturing Unit, Wholesale Dealer of
goods, Distributor of goods, or a Provider of Services. The Sponsoring
Corporate should be rated SBS 1-3 and SBS 4-6 (previous rating of 'AA' and
above)
Discount Future Cash Flows
To discount future cash flows including lease rentals. General corporate
purposes- like augmentation of long 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.
Foreign Currency Swing Limit
Working Capital & Demand Loan for purchase of new plant and machinery,
acquisition of equipments and other assets.

Exporters Gold Card
In its pursuit to be of help to the Exporter Community, Bank of India
launched Exporters' Gold Card on 15-7-2004. The card was unveiled by Shri
P.V. SubbaRao, Executive Director, Reserve Bank of India. The function was
chaired by the Chairman and Managing Director of the Bank, Shri M.
Venugopalan, and well attended by about 150 leading exporters from
Mumbai and neighbouring places.

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Rural Services
BOI is providing many services specially for rural areas. These are shown in the table
below:


Lets start with the cards. These are the credit cards offered to the Kisans i.e. farmers.



Kisan Credit Card
Kisan Credit Card Scheme aims at providing need based and timely credit support to
the farmers for their cultivation needs as well as non-farm activities and cost
effective manner and to bring about flexibility and operational freedom in credit
utilisation.

Rural
Cards Servises
Financial
Inclusions
Cards
Kisan
Shatabdi Krishi
Vikas
Kisan
Samadhan
Star Bhumuhin
Kisan
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Shatabdi Krishi Vikas

Our Bank was first to introduce Indian Green Card for the farmers in the banking
industry way back in 1980s. The concept has been adopted in all the Banks,
thereafter with further modifications. In our Bank, the product has been further
upgraded with value additions as Kisan Suvidha Card, Kisan Gold Card and Kisan
Samadhan Card, which is a line of credit for farmers with components of Production
Credit, Consumption Credit, Emergency Loan and Investment Credit requirements of
farmers for 3 to 5 years.
With the advent of Information Technology and latest development in agriculture
and marketing, it was felt necessary that farmers should also be provided with the
available latest technology in the banking industry to provide them Anywhere
Anytime Banking like any other clientele and accordingly BOI Shatabdi Krishi
Vikas Card was launched on 10.09.2005 under tie-up with Visa.

Kisan Samadhan Card
Kisan Samadhan Card scheme is based on Line of Credit concept and each farmer
is provided with a package of Kisan Samadhan which would enable farmers to
avail short term and long term credit for a period of maximum 5 years continuously
with rollover arrangements.

Star Bhoomiheen Kisan Card
The main objective of Star Bhoomiheen Kisan Card (Star BKC) is to provide easy
access to short term production and consumption credit to meet genuine
requirements of tenant farmers, share croppers and oral lessees to help increase their
income from agriculture production activities.


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Agri Clinic
1. To establish small dairy unit with 2 to 4 milch cattle.
2. To establish new medium /large unit.
3. Collection, processing ,distribution of milk & manufacturing of milk products.
4. Purchase of improved/crossbreed milch cattle.
5. Construction of cattle shad.

Services
Agri Clinic
Cold Storage
Crop Finance
Land
Developement
Poultry
Development
Purchase Of
Land
Rural Godown
Dairy
Development
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Cold Storage
India is the largest producer of fruits and second largest producer of vegetables in the world.
In spite of that per capita availability of fruits and vegetables is quite low because of post
harvest losses, which account for about 25% to 30% of production. Besides, quality of a
sizable quantity of produce also deteriorates by the time it reaches the consumer. This is
mainly because of perishable nature of the produce, which requires a cold chain arrangement
to maintain the quality and extend the shelf life if consumption is not meant immediately
after harvest. In the absence of a cold storage and related cold chain facilities, the farmers
are being forced to sell their produce immediately after harvest which results in glut
situations and low price realisation. The estimated annual production of fruits and vegetables
in the country is about 130 million tonnes. This accounts for 18% of our agricultural output.
Due to diverse agro climatic conditions and better availability of package of practices, the
production is gradually rising. Although, there is a vast scope for increasing the production,
the lack of cold storage and cold chain facilities are becoming major bottlenecks in tapping
the potential. The cold storage facilities now available are mostly for a single commodity
like potato, orange, apple, grapes, pomegranates, flowers, etc. which results in poor capacity
utilisation. Foods and many other commodities can be preserved by storage at low
temperature, which retards the activities of micro organisms. Micro organisms are the
spoilage agents and consist of bacteria, yeasts and molds. Low temperature does not destroy
those spoilage agents as does high temperature, but greatly reduces their activities, providing
a practical way of preserving perishable foods in their natural state which otherwise is not
possible through heating. The low temperature necessary for preservation depends on the
storage time required
often referred to as short or long term shortage and the type of product. Cold storage units
can be used to store either a single commodity or multiple commodities. Depending upon
the entrepreneur's financial health; it can be planned to store the produce entirely owned by
him or on rental basis or in combination of the two. NABARD usually encourages cold
storages where 70% of the capacity is available to farmers for storage on rentals. Financial
viability of a unit depends upon the intended pattern of use and rental rate prevalent in an
area. However, units entirely to be used by the owners are also considered for sanction.
Considering 70:30 utilisation of the capacity for rentals and own use, a 5000 MT capacity
unit is considered as. A cold storage unit incorporates a refrigeration system to maintain the
desired room environment for the commodities to be stored. A refrigeration system works
on two principles:
Vapour absorption system (VAS), and
Vapour compression system (VCS) VAS,
although comparatively costlier, is quite economical in operation and adequately
compensates the higher initial investment.
VCS is comparatively cheaper than VAS. There are three types of VCS systems available
depending upon the cooling arrangements in the storage rooms i.e., diffuser type, bunker
type and fin coil type. Diffuser type is comparatively costlier and is selected only when the
storage room heights are low.
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Crop Finance
Crop production is the most important agricultural activity. All minor or major economic
activities in rural areas are directly or indirectly related to this activity. The following
physical provisions with their costs are considered for a cold storage unit:
a. The factors affecting crop production can be grouped into two categories:
i) Natural factors
ii) Economic and social factors
b. Soil, water and climatic conditions constitute natural factors while availability of
capital to meet input requirements like seeds, fertilisers, plant protection materials,
etc. and needs of the community are economic and social factors.

Land Deveopment
Land degradation is the major problem of Indian Agriculture. Most of the land area in our
country shows evidence of degradation, affecting thereby the productive resource base. Out
of 329 million hectares of land in the country, about 175 million ha. (53 %) is suffering from
degradation in some form or the other. There are 7.61 M ha of salt affected soils in India as
per the Ministry of Agriculture, GOI. The extent of this problem area as given by different
sources varies from 8.56 M ha to 10.9 M ha. Water logging affects another 8.52 M ha
mainly in the irrigation commands, which includes some of the saline-alkali soils also.

Soil degradation takes place for various reasons like cultivation of same type of crops year
after year, excessive use of chemical fertilizer. Excessive and uncontrolled irrigation, excess
use of ground water also degrades the soil. Banks extend finance farmers for the purpose of
Land Development and Development of Waste land.

Poultry Development
The main objective of financing poultry is to increase egg/meat production by meeting
financial requirement of the proponents who are willing to undertake poultry as a subsidiary
or main occupation. Financing can be considered for the following types of poultry
schemes.
Establishment of small poultry (layer or broiler) units of 200 to 500 birds as subsidiary
occupation by the farmers and agricultural labourers. Individual registered partnership firms
limited companies and registered co-operative societies having necessary trained and
technical personnel and management experts for running following commercial poultry
units.
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Purchase of Land
The agricultural policy of the Government of India envisages doubling of the farm output
during the next decade. Presently, the Bank provides finance to the farmers in the form of
term loans for development purpose and short-term loans for production purposes. There is
also a need to finance farmers for purchasing land to expand activities and make existing
small and marginal units economically viable. This would enable farmers to diversify their
present activities and take up allied activities.

Agriculture which is the lifeline of our country, is predominantly a land based activity and
absence of resource support particularly for purchase of land especially by Small and
Marginal farmers had been a cause for concern and come in the way of their economic
development. Our Honble Union Finance Minister announced a package on 18 June 2004
to double agricultural credit within three years with 30% growth each year. The agricultural
policy of the Government of India also envisages substantial credit flow to increase
agricultural production and productivity. Banks provide agricultural term loans to farmers
for investment purposes and short-term loans for production purposes. There is a need to
finance farmers for purchasing land not only to expand their activities but also to make
existing small and marginal units economically viable, diversify their present activities and
to bring fallow lands and waste lands under cultivation.

Rural Godowns
The main objectives of the scheme include creation of scientific storage capacity with allied
facilities in rural areas to meet the requirements of farmers for storing farm produce,
processed farm produce, consumer articles and agricultural inputs; promotion of grading,
standardization and quality control of agricultural produce to improve their marketability;
prevention of distress sale immediately after harvest, promotion of pledge financing and
marketing credit and to strengthen agricultural marketing infrastructure in the country for
the introduction of a national system of warehouse receipts in respect of agricultural
commodities stored in such godowns. However, the materials used and design of the
godown would depend upon the produce proposed to be stored.

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Saving Accounts
Saving Accounts are the most popular and widely used form of accounts. Indians show
common tendency of saving the part of their income. Thats why they prefer saving account
to any other account. BOI offer following saving ccounts:
Salary Plus Account Scheme
BOI Salary Plus Account Scheme for Para Military Forces/Central/State Govt./PSU/Private
Sector enterprises and employees of Universities, Colleges, Schools .

The salient features of the BOI Salary Plus Account Scheme:
No minimum Balance requirement / Zero Balance Account
Free global Debit cum ATM Card to all and Platinum Card for higher salary earners
Free gold credit card to all and gold International Credit card for higher salary
earners
Personal accident death insurance cover of Rs.2 Lac
Free 100 cheque leaves in a calendar year
Retail
Deposites
Saving current term tax saving
Loans
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Free internet banking, mobile banking , Star Sandesh RTGS/NEFT through net
banking facility
Easy overdraft equal to 4 times of net monthly salary max. Rs. 2 Lac
Star Share trade (No AMC charges for Demat for 1st F.Y.)
Free 24 DD/PSI of max. Rs. 50,000 each in a calendar year
0.25% concession in ROI on Home Loan and Auto Loan subject to min Base rate
50% concession in processing charges on Home Loan and Auto loan

BASIC SAVINGS A/C (No Frill)
1. Adult Individuals can open account.
2. Firms / Joint accounts not eligible
3. Simplified Know Your customer norms to be complied
4. SB no-frill account to be opened with minimum Zero balances at all branches,
subject to compliance of all other terms and conditions.
5. Free Debit Cum ATM card issued at all CBS branches(Annual Charges applicable
from next year)
6. Withdrawals through ATMs & branch withdrawals - max 2 per month.
7. No third party withdrawals
8. Nomination compulsory.
9. Interest @ 4.00 % p.a. Interested will be calculated on daily products basis from
03.05.2011 and will be credited in the A/c in August and February every year or at
the time of closing the A/c. Min. interest of Rs.1/- will only be credited.
10. Collection of cheques upto Rs. 5000/=into the account.
11. Free quarterly statement of account at Urban and Metro branches. Pass books at
Rural & semi-urban branches.
12. No penalty for not maintaining Min balance.
13. No charges for closure of account.(ATM Debit card to be surrendered)
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14. Account can be converted into normal SB account by maintaining required minimum
balance.
15. Branch Managers are delegated to issue one cheque book free to literate account
holders.

Star Power Salary Account
No minimum balance requirements.
No Ledger Folio/ Transactions charges.
Free ATM International Debit Card(Annual Charges applicable from next year )
Free India Card (Charge Card)
Free Internet Banking Facility.
Unlimited Internet Banking Transactions and also at ATMs of BOI
Free Access to non-BOI ATMs under Cash Tree.
Free Statement of Account - Quarterly - from the Branch
Free Tele banking/ SMS Banking
Free Personalised Cheque Books (50 leaves in a year)
Free Demat Account (for the first year)
Facility for Online Trading of Shares
Free cheque pickups/deliveries - once a day (cheque drop boxes to be installed in the
Office)
TOD Facility - equal to previous month's net salary @ Personal Loan Rate.
Free Multicity Cheques
Free Utility Bills Payment through e-Pay Facility.


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Current Account
Current accounts are mostly used by the trades for business transactions. Overdraft facility is
associated with the account. Current account has different types:
Normal Current Account
The scheme is available at all branches of BOI. This account can be opened by:
Individual - Single Accounts
Two or more individuals - Joint Accounts
Sole Proprietory Concerns
Partnership Firms
Illiterate Persons
Blind Persons
Minors
Limited Companies
Associations, Clubs, Societies, etc.
Trusts
Joint Hindu families (accounts of non-trading nature only)
Municipalities
Government and Quasi-Government Bodies
Panchayats
Religious Institutions
Educational Institutions (including Universities)
Charitable Institutions

We also get following incentives with Normal Current Account:
Free Global Debit cum ATM card to Individuals and Prop(Annual Charges
applicable from next year ).
SMS/phone/Internet banking free.
Free NEFT/RTGS through internet Banking.
From any branch max. cash withdrawal through cheque:50000/-, upto 25000/- per
day free. Beyond Rs.25000/- charges - Rs.2/- per thousand and cash deposits. Inter-
sol fund transfer to third partys a/c is free upto Rs 1 lac per occasion per day.
BOI-National Swasthya Bima Yojana floter mediclaim policy and domestic travel
Ins policy of NICL available at concessional rate of premium to individuals

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Star Diamond & Star Gold Current Accounts
Bank of India offers you 'Star Diamond Plus Banking', 'Star Diamond Banking' &
'Star Gold Banking'. An experience that opens the doors to a whole new world of
privileged banking. One that's filled with unparalleled advantages. The Star Diamond
Plus, Star Diamond & Star Gold Banking status could be the ace up your sleeve
that's particularly beneficial in the high-powered business world, making your
transactions hassle-free and trade that much simpler. So be a part of a new era in
banking, one in which we can share an exclusive and cherished relationship.



Term Deposits
Term deposits are offered for predecided period, say, a month, a quarter, an year, etc


Fixed/Short term Deposit

Mode of calculation of Interest on Short Deposits and Fixed Deposits for periods less
than 12 month. Interest will be calculated for the completed months and where the
terminal month is incomplete- the actual number of days on the basis of 365 days in a
year.
KYC ( Know Your Customer) for opening account is applicable for these accounts
hence proof of residence and proof of identification will be required alongwith recent
photograph of the depositor/s.
It is desirable that the Term Deposit account holders also maintain Savings Bank
accounts with the Bank so as to avoid delay in disbursement of interest on term deposits
or inconvenience to the depositor to call on the Branch to collect interest.
``For the benefit and convenience, may we suggest that you open a Savings Bank
Account with us and give us instructions to credit thereto, half yearly interest on this
Term Deposit Receipt. Your interest will earn interest.''


Recurring Deposit

Recurring Deposit is a special type of deposit account which enables a depositor
particularly in fixed income group to save by paying into the account an agreed fixed
sum of money monthly over a stipulated period. The deposits in this type of account earn
compound interest on quarterly basis. Longer the period for which monthly deposits are
agreed to be made higher is the rate of interest subject to rules.
KYC ( Know Your Customer) Norms for opening account are applicable for these
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accounts also hence proof of residence and proof of identification will be required along
with recent photograph of the depositor/s.


Double Benefit Deposits

Double Benefit Deposits provide a higher yield on the principal at the end of the
stipulated period as the interest is compounded on quarterly basis; but, the principal and
the accrued interest is paid only at the end of the period for which the deposit is placed
with the Bank and not monthly or half-yearly as in the case of other types of deposits.
This scheme is useful for short term and medium term investment ordinarily ranging
from 12 months to 120 months.
KYC ( Know Your Customer) Norms for opening account are applicable for these
accounts also hence proof of residence and proof of identification will be required along
with recent photograph of the depositor/s.


Quarterly/ MonthlyTerm Deposit

Moneys invested in this type of deposit (Quarterly/Monthly Income Certificate) provide
fixed monthly income by way of interest to the depositor for a specified period leaving
the deposit amount intact. The Quarterly/ monthly interest will be credited to the savings
or current account and monthly interest may be credited in recurring deposit account of
the depositor according to the instructions.
KYC ( Know Your Customer) for opening account is applicable for these accounts also
hence proof of residence and proof of identification will be required along with recent
photograph of the depositor/s.

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Tax Saving Deposit
BOI also provides tax saving accounts so that customers can avail the tax benefit.
CAPITAL GAIN ACCOUNTS SCHEME 1988
Capital Gain Accounts Scheme 1988 is applicable to eligible taxpayers who wish to claim exemption
u/s 54 for capital gain.
Star Sunidhi Tax-Saving Deposit Scheme
A Scheme for long term savings investments, with Income Tax Benefits. An individual or a
HUF having PAN number is eligible for the account. One has to deposit Rs.10,000/- to
1,00,000/- for the scheme. Tenure is extended between 5 to 10 yrs.


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Cards


Star Vidya Card
1. This is also a proprietary card exclusively given to students who are studying
2. It is a photo card
3. It can be used in any ATM and the POS provided by Bank of India only which is
kept at college campus.

Apart from this we are issuing the following two products :


A. READY KIT It is a non - personalized card Master Card. This can be used as a
buffer stock. It can be issued to any account of any branch. We are supplying the
Cards
Debit Credi
Debit Cards
Dhan adhar
Star Vidya Card
VISA Debit Card
Rupay Debit
Card
Master Platinum
Debit Card
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same to the branches. Here the customer is satisfied immediately as he gets the card
and pin mailer the same day from the branch. The only thing is the card will not have
his name and the card can be put in use after 24 hours.But in other case he has to
wait for a minimum of 7 to 10 days for cards and pin mailer.
B. WELCOME KIT We are issuing a card type called Welcome Kit. Normally it is
issued to High Net worth Individuals and to the young generation who are tech savvy
and having access to Internet.
This kit contains three things as follows:
i. Welcome kit Master debit card and pin mailer
ii. Cheque Book issued in the name of the customer/cardholder
iii. Internet banking user id & password.
a. In place of name of the card holder it will have the 15 digit account number
of the card holder
b. Branch has to allot the already opened account number in their system to the
person by filling his name address etc and de-freeze the account. Since the
card is already linked to the account branch the customer can go to any ATM
he can do transaction with the card and the pin he has received.
VISA Debit Card
(Valid Domestic & International)
Can be used in any of the ATM and POS
Maximum limit of cash withdrawn is Rs.25,000 per day in ATM
Maximum amount that can be withdrawn per day is Rs.25,000 in POS
Rupay Debit Card
(Valid in India, Nepal & Bhutan)
It can be issued to any account
It can be used only in ATM and on a few POS
Maximum limit of cash withdrawn is Rs.25,000 per day in ATM
Maximum amount that can be withdrawn per day is Rs.25,000 in POS
Master Platinum Debit Card
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(Valid Domestic & International)
Can be used in any of the ATM and POS
Maximum limit of cash withdrawn is Rs.50,000 per day in ATM
Maximum amount that can be withdrawn per day is Rs.1 lac in POS



Credit Card for Pensioners
Specially designed for pensioners
Limit will be based on three times monthly pension but no TOD allowed
Krishi Vikas Card
Visa Card issued exclusively to the big farmers having cash credit facility
No Charges
Navy Gold
Master card Issued to the top officials in Navy.
Credit Card
Credit Card
for Pensioners
Krishi Vikas
Card
Navy Gold
Visa Gold
Card
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All are direct billing cards.
Free for life time
Visa Gold Card
For customers Gross annual income of Rs.1.50 lacs& above
Fee Principal Card : Rs. 600 p.a., Add on Card : Rs 350 p.a.
Pin enabled photo card for secure usage at over 2,50,000 merchant locations and
24hr. cash access at over 90,000 ATMs.
Revolving Credit at preferential rate, interest free credit for upto 51days.
Cash advance facility at over 4000 branches with free remittance facility for card
payment.
Options for bill payments through branch accounts at zero charges.
Flexible credit limits for add-on cards.
Reward Programme on card usage.
24 hr. toll free assistance for reporting lost/stolen cards.

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Conclusion
We have seen different services provided by the BOI. The offering is quite wide.
One can choose product/service wisely according to his need. But the thing is most
of the people are not aware about all the services. Mostly what people avail is saving
scheme, fixed a/c, and debit card. People do not dare to draw credit card. They prefer
to wait in long queue, but avoid taking benefit of internet banking. Even well
educated people show the same tendency.
The bank has a long list-full of services especially for the farmers. But we know the
situation. They still go to money lenders. Borrow at high rate of interest. If crop fails,
they do not have any other option but to commit suicide. This is the most sarcastic
situation. People need to be aware. Bank should conduct some seminars and
workshops for farmers. The bank has to go to them.


Suggestions
The bank needs to undertake activities to spread awareness about their services,
such as:
Hoardings
Street plays
Meetings
Personal contact
Workshops
Even the customers going to bank must be consulted well enough. Attendant
should understand the needs of the customers and guide them accordingly.
Farmers avoid going to the bank. In such cases bank should approach the
farmers.

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Webliography

www.bankofindia.com

www.timesgroup.com

www.scribd.com