A PROJECT REPORT

ON
“Financial statement of Bank of India”
AT
NORTHPOLE WEB SERVICE
MOHALI

Submitted to
XXXXXX

Submitted by
XXXXXXX

Roll no XXXXXXX

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 ACKNOWLEDGEMENT

I feel obliged to our Managing Director Mrs. POOJA OHRI,

A&M INSTITUTE OF MANAGEMENT for her support and
encouragement.

I also thank MR. RISHI DOGRA, H.O.D, Department of

Management Studies, for his valuable suggestion and assistance
throughout the project.

I owe my achievement to the inspiration and kind guidance to my

respected M.R.ANKIT, Lecturer, Department of Management Studies,
and I am thankful for his sincere guidance as my Internal Guide to
successfully complete my project.

I express my sincere thanks to the advisory committee members

and staffs, Department of Management Studies for their continuous
monitoring and assessment.

I would really like to thanks MR. SUMIT KUMAR SETHI,

TRAINING & HR MANAGER, PIC N FRAMES TECHNOLOGIES for
helping and guiding me through out the project.

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 TABLE OF CONTENTS

Sl.No. Contents Page No.

1. Executive Summary 4-5
2. Introduction of financial statement 6
Meaning of financial statement 7
Objectives 7-8
Anantomy 8
Analysis 9-10
3. types 11-14

4. Methods 14-16

Introduction of bank of India 17-20

Bank mission vission 21
5. Training process 21-24
6. Network 25-27
7. Policis of Indian bank 27-31
8. Commitments 31-39
9. Image buildings products 39-41
10. Loans 39-56
11. Star e pay 57
12. Kisan credit card scheme 59
13. Test statistics 68-74

14. Research Methodology 75

EXECCUTIVE SUMMERY

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This report is prepared during my summer training.
Summer training is life’s greatest treasure as it is based
on experience that provides face-to-face interaction with
real life situation. Financial statement analysis has a vital
importance in every concern. It throws light on strengths
and weaknesses of the company. These statements give
us insight about any organization. It plays a vital role in
taking decisions by shareholders, govt. agencies,
investors, FII’s, borrowers and all the persons dealing with
it. Though this statement looks like a piece of paper but
contains useful information. There are various methods to
analyse these statements but Ratio Analysis is a major
tool to analyse these financial statements.
Ratio Analysis refers to the systematic use of ratios
to interpret the financial statements in terms of operating
performance and financial position of the company. It
involves the process of calculating and interpreting
various ratios from the information

contained in the INCOME STATEMENT & BALANCE

SHEET of a company for helping the analyst in making
certain decisions.

INTRODUCTION TO FINANCIAL STATEMENTS

Before we discuss the meaning of financial statements, two sets of

questions are there the answers of which are sought:

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 (1) How successfully has the business operated during the accounting
period? Has it gained or suffered set back? What are the elements
comprising the results?
(2) How does the business stand at the end of the period? What are
claims payable and receivable? How much are the funds of the
owners and how much are the debts?

The answers of the above questions are provided by the FORMAL

REPORTS commonly known as FINANCIAL STATEMENTS.
The basis for financial planning, analysis and decision-making is the
financial information. Financial information is needed to predict, compare
and evaluate the firms earning ability. It is also required to aid in
economic decision-making. The financial information of an enterprise is
contained in the financial statements.

Meaning of Financial Statements

A financial statement is a collection of data organized according to

logical and consistent accounting procedures. These are the end products
of the process of accounting. Its purpose is to convey an understanding of
same financial aspects of a business firm financial statements are the
outcome of summarizing process of accounting.

“A summary of accounts of a business enterprise the balance sheet

reflecting the assets and liabilities and capital an a certain date and the
income statement, showing the results of operations during a certain
period”
John N. Myar

5
Financial statements are also called financial reports.
Two basic financial statements prepared for the purpose of internal
reporting to owners, investors, creditors and other agencies are:

 Balance sheet
 Profit & Loss Account or Income statements

One of the author has rightly compared these two statements by

saying” THE PROFIT AND LOSS ACCOUNT IS VERY SIMILAR TO
THE CINE CAMERA’S PICTURE OF SOMETHING OCCURING
OVER A PERIOD OF TIME WHILE THE BALANCE SHEET MAY BE
ONE OF THE STILLTAKEN AT ANY STAGE DURING THE RUN OF
THAT PARTICULAR CINE TIME.”

OBJECTIVES OF FINANCIAL STATEMENTS

The generally accepted accounting principles and procedures are

followed to prepare these statements main objective is to assist in
decision making others are:

Resources and obligations: To provide reliable financial information

about economic resources and obligations of business enterprise.

Changes in net resources: To provide reliable information about

changes in net resources of an enterprise that results from the profit
directed and other activities.

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Earnings potential: To provide financial information that assets in
estimating in estimating the earnings potential of enterprise.

Full disclosure: To disclose to the extent possible other information

related to the financial statements that is relevant to statements users.

ANATOMY OF FINANCIAL STATEMENTS

Financial statements primarily comprise two basic statements (i) balance

sheet (ii) the income statements however Generally Accepted Accounting
principals (GAAP) specify that a complete set of financial statements
must include:
- A Balance sheet
- An income statements
- A statements of changes in owners’ accounts
- A statements of changes in financial position

Financial
Statements

Position statements Income statements Statements of

Changes in
Owners’ Equity
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 Statements of Changes in
financial position

Fund Flow Statements Cash Flow statements

FINANCIAL STATEMENTS ANALYSIS

The term ‘Financial analysis’ are known as analysis and

interpretation of financial statements refers to the process of
determining financial strengths and weaknesses of the firm by
establishing strategic relationship between the items of the balance
sheet, profit and loss account and operative data.
Financial analysis and planning rely heavily and
standard accounting information normally available to firm the
Balance sheet and income statements of the firm types of
accounting information use of accounting data is both a strength
and weakness.

The strength lies in its ready availability. Its weakness is that it is

sometimes difficult to interpret, so financial analysis helps in
identifying and indicating whether a firm has enough cash to meet
obligation a reasonable accounts receivable collection period etc.

Financial Statements analysis typically follows a series of interrelated

steps that leads a uses to a meaningful interpretation of financial data.
These steps are specifying the purpose of analysis:

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  to identify the measurement base
 to compare the processed data with a standard

The purpose of financial analysis is to diagnose the information

contained in financial statements so as to Judge the profitability and
financial soundness of the firm.

“It is the evaluation of firms part present and anticipated future

financial performance & financial condition”

Financial Analysis covers both analysis and interpretation while the

term analysis is used to mean the simplification of financial data by
methodical classification of data & interpretation means
“explaining the meaning and significance of data so simplified.”

The figure is shown below:-

(4) (1)
Financial Financial
Control analysis

(3) (2)
Financial Financial
Planning decision
making

Information Information

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 The Financial management Process

TYPES OF FINANCIAL ANALYSIS

Here we classify various types of financial analysis into different

categories depending upon:-

(a) Material used

(b) The method of operation followed in the analysis or the modus
operandi of analysis.

TYPES OF FINANCIAL ANALYSIS

On the basis of Material used On the basis of Modus operandi

External Internal Analysis Horizontal Analysis Vertical Analysis

Analysis

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(a) On the basis of material used.
According to material used financial analysis can be of two types:-

(1) EXTERNAL ANALYSIS

This analysis is done by outsiders who don’t have access to
the detailed internal accounting records of the business firm. These

outsiders include investors, potential investors, creditors, govt.

agencies, credit agencies & the general public. Here external
parties to the firm depend almost entirely on the published
financial statements. Thus, external analysis serves only a limited
purpose.

(2) INTERNAL ANALYSIS

The analysis conducted by persons who have access to the

internal accounting records of a business firm is known as
INTERNAL ANALYSIS. Such analysis can be performed by

exclusive & employees of the organization as well as govt.

agencies which has statutory powers vested in them.

(b) On the basis of modus operandi

(1) HORIZONTAL ANALYSIS:-

Horizontal analysis refers to the comparison of financial data
of a company for several years. The figures are presented
horizontally over a number of columns. These figures are
compared with the

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 standards or base year. This type of analysis is also called
“DYNAMIC ANALYSIS “
Comparative statements and trend percentage are two tools
employed in horizontal analysis.

(2) VERTICAL ANALYSIS: -

It refers to the study of various items in the financial statements of
one accounting period here; the figures are compared with a base
selected from the same year’s statement. It is also known as
“STATIC ANALYSIS”. Common size financial statements and
financial ratios

are the two tools employed in it. Since vertical analysis considered
data for one time period only, it is not very conductive to a proper
analysis of financial statements.

METHODS OR DEVICES OF FINANCIAL ANALYSIS

The analysis and interpretation of financial statements is used to

determine the financial position and results of operations as well. A
number of methods are used to study the relationship between different
statements.

(1) Comparative Statements

(2) Trend Analysis
(3) Common-size Statements
(4) Ratio Analysis

(1) COMPARATIVE STATEMENTS

Comparative Statements are the statements prepared to trace the

periodic changes in the financial performance of a company. It takes

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 items at least for two periods. Generally two separate statements are
prepared in comparative form for the purpose of financial analysis. The
changes in balance sheet and profit & Loss Account over period can be
shown in two ways:-

(a) Aggregate changes

(b) proportionate changes

Points to be taken into account:

i) Same accounting policies should be used over two periods.
ii) If same accounting policies are not adopted then inter-period
comparison will be misleading.

(a) COMPARATIVE INCOME STATEMENT

The comparative Income statement gives an idea of the progress of

a business over a period of time. It has four columns. First two
columns give figures of various items for two years. Third &
Fourth columns

are used to show increase or decrease in figures in absolute

amounts &percentages resp.

(b) COMPARATIVE BALANCE SHEET

The comparative balance sheet analysis is the study of trend of the

same items, group of items & computed items in two or more
balance sheet of the same business enterprises. The changes in
periodic balance sheet items reflect the conduct of a business.

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Guidelines for interpretation of comparative balance sheet.

(1) Current financial position & liquidity position.

(2) Long-term financial position.
(3) Profitability of the concern.

14
 INTRODUCTION

Bank of India’s 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 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 2628 branches in India spread over all states/ union
territories including 93 specialized branches. These branches are
controlled through 48 Zonal Offices . There are 24 branches/
offices (including three representative offices) abroad.

The Bank came out with its maiden public issue in 1997. Total
number of shareholders as on 31/03/2006 is 2,38,708.

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

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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.

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 23 branches (including three
representative office ) at key banking and financial centers viz.
London, Newyork,Paris,Tokyo,Hong-Kong,and Singapore. The
international business accounts for around 20.10% of Bank's total
business. The Bank has a strong position in financing foreign
trade. Over 270 branches provide export credit. The expertise in
this area has enabled the Bank to achieve a leading position in
providing export credit in certain areas like diamond export.

The Bank has identified specialized target groups to develop core

advantage for future growth. The Bank, as on March 2003, had 93
specialized branches comprising Corporate Banking Branches to
undertake very large credit business, Overseas Branches
specializing in Foreign Exchange Business, NRI Branches which
specially cater to the requirements of Non-Resident Indians,
Capital Market Branches which undertake all activities relating to
capital market such as collection of applications, processing of
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refund orders, Merchant Banking etc. Commercial & Personal
Banking Branches cater to the requirements of high net worth
customers. Apart from this, the Bank also has specialized
Branches for Asset Recovery, Small Scale Industries, Hi-tech
Agriculture Finance, Lease Finance and Treasury.

To effectively meet the ever-growing challenges and competition,

the Bank has made a good head-way in bringing about
technological up gradation. MIS and critical functions of controlling
offices have been computerized. At present, the operations at
about 2433 branches are totally computerized. 180 branches
operate in partially-computerized mode besides this 833 branches
and 30 extension counters are migrated to Core Banking Solution.
New facilities such as,

Telebanking, ATM & Signature Retrieval Systems have been

introduced in a progressing manner to add value to services.
Telebanking facilities with Fax on Demand facility, Remote Access
Terminals for Corporate Customers are now available at many
branches. The Bank has installed ATMs in Mumbai and other
centres in the country. The Bank is a member of the RBI's VSAT
Network and

has installed 39 VSATs linking strategic branches/offices. 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, that facilitates City-wise Connectivity of
Computerized Branches. As on September 2003 the connectivity
has been done in 200 cities/ towns. The Bank is in the process of
installing BOINET, a Wide Area Network for providing a inter- and
intra-city connectivity, as a part of enhancing its decision support
system.

The Bank's corporate personality and philosophy are fully reflected

in the emblem, which is a five-pronged Star -- a harmonious blend
of traditional and the functional. The elongated prong pointing
upwards, conveys the Bank's drive to achieve ascending goals.
The Star is a beacon and guide to those in need of direction.

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Bank of India’s Mission and Vision

Our Mission

"to provide superior, proactive banking services to niche markets

globally, while providing cost-effective, responsive services to
others in our role as a development bank, and in so doing, meet
the requirements of our stakeholders".

Our Vision

"to become the bank of choice for corporate, medium businesses

and up market retail customers and to provide cost effective
developmental banking for small business, mass market and rural
markets"

Training Process followed by Bank of India:

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Training Process Consists of the following inter-related steps:-

1. Identification of training needs.

2. Setting training objectives.
3. Organization of training.
4. Evaluation of training outcomes or results.

Identification of training needs:

The technology changes taking place is the main cause of the

identification of the training needs, in an organization. Earlier the people
were acquiring training through apprenticeship and vocational courses,
which are not sufficient in the modern era of industrialization. Therefore,
it is essential to identify training needs.

Training needs can be identified through the following types of analysis:

(i) Organizational Analysis

(ii) Talk Analysis
(iii) Manpower or Human resources Analysis

(i) Organizational Analysis:

It is a systematic study of the organization in terms of its objectives, its

resources, resource allocation and utililsation, growth potential & its
environment. Its purpose is to determine where training emphasis should
be placed in the organization for increasing orgainsational effectiveness.

(ii) Task Analysis:

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 It is a systematic analysis of jobs to identify job contents, knowledge,
skills and aptitudes required to perform the job. Particular attention
should be paid to the tasks to be performed, the methods to be used, the
way employees learn these methods and the performance standards
required of employees.

(iii) Manpower Analysis:

The quality of manpower required by the organization has to be carefully

analysed. It has to be done in the light of both internal & external
environment of the organization. The economic, social, technological &
political environment of the organization should be properly scanned to
determine the quality of HR’s desired.

Setting Training Objective:

Once the training needs are identified, the next step is to set training
objectives in concrete terms and to decide the methods to be adopted to
achieve these objectives. The overall aim of any training programme is to
increase orgainsational effectiveness. However, each training programme
must also have specific objectives such as increased productivity,
improved quality, better human resource planning, better health & safety,
prevention of obsolescence and enhanced personal growth.

Organization of Training Programme:

Every training programme includes trainees, a training period and

training material. These constituents of training are discussed below:-

(i) Selection of the Trainees:

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 The Proper selection of trainees is of major importance if permanent and
gainful results are to be obtained & trainee should be trained for the kind
of

job he likes and is fitted to perform. In this respect, training is closely

related to the selection of personnel.

(ii) Preparation of the Instructor:

The instructor or trainer is a key figure in an effective training

programme. He can contribute immeasurably to its success. Qualified
instructor may be obtained form inside or outside the organization.
However, many insiders are not good instructors because they may not
possess the ability to teach the skill. He must be able to divide the job
into logical parts so that he may take up one part at a time without losing
his perspective of the whole. He must be tolerate and patient.

(iii) Determination of Training Period:

The length of the training period depends upon the skills to be acquired,
the trainee’s learning capacity and the training methodology used for
instance, a simple programme for clerks may required an hour a day over
a period of one week, while a course in computer programming may be
given two hours a week for 15 weeks. To maintain interest and secure
maximum accomplishment, no single session should last longer than two
hours.

(iv) Training methods and material:

There are several on-the-job and off-the-job methods of training. The

choice of any method would depend upon the specific objectives of the
training programe. To increase the effectiveness of training, some written
material is usually desirable as a basis for instruction, review and
reference.

Evaluation of Training:

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 Training is indispensable for both the organization and the individuals
working therein. It is very costly & time consuming process. It is
essential to determine its effectiveness in terms of achievement of
specific training objectives. Individuals like to know how much they
learnt or how will they

are doing. The sooner employees know the result of a quiz or test, the
sooner they can assess their progress. The sooner employees receive
positive feed back from the trainer, the less time they will waste.

Network

Bank of India is a premier and one of the oldest commercial

banks in India, with presence all over India as also in all time
zones of the world. The Bank has a glorious history dating back to
the early years of this century. The Bank was founded in
September 1906 and has all along maintained a position of pride
among the top 5 commercial banks in the country. In July 1969,
Bank of India was nationalized alongwith 13 other large Indian
commercial banks. Since then, the Bank has made enormous
contribution to India's efforts towards agricultural and rural
development, industrial diversification and modernization and
export development. Keeping pace with financial sector reforms in
India, the bank has ventured into Merchant Banking, Mutual
Funds, Housing Finance, Custodial & Depository through it's
subsidiaries.

Today the Bank has over 2594 branches spread all over India and
23 branches/offices overseas - in 10 countries, spanning all

22
time zones. The Bank has a pre-eminent position in both
wholesale banking and retail banking in India. Bank of India
believes in "Total Package Approach" to meet all the financial
and non-financial requirements of its customers.

Entrepreneurs are not only assisted in establishing their projects,

but are also helped in day-to-day operations by providing
necessary working capital finance either on its own or through
syndication. The Bank also provides guarantees, letters of
credit, remittance facilities, supplier's credit, forward cover,
advisory services for hedging exchange rate and interest rate
risks, trade information reports, bankers' opinion reports on
buyers and sellers, industry status reports and prospects,
etc.In the new era of economic and financial sector reforms
leading to progressive liberalization and globalization of the Indian
market, Bank of India is poised to further it's position as a market
leader and innovator in financial services.The Bank looks at the
new competition emerging in the Indian banking and financial
sector as an oppotunity to improve it's customer servicing
capability and overall performance.The bank is pushing ahead with
it's plans to computerize all it's major branches and administrative
offices and has also installed ATM's at few centers

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POLICIES OF INDIAN BANKING

i) Immediate credit of local / outstation cheques

ii) Time Frame for collection of local / outstation cheques
iii) Interest payment for delayed collection and
iv) Penal charges for delayed credit for ECS/EFT/SEFT

1.) Immediate Credit of Local / Outstation Cheques :

Cheques upto & inclusive Rs. 15000/- (Local as well as
outstation) :

Immediate Credit and withdrawals against cheques upto and

inclusive of Rs.15000/- for local as well as outstation cheques
deposited in the accounts of an individual customer for collection is
to be given subject to maintaining satisfactorily operated account,
without waiting for customer's specific request but as a matter of
normal course.

The rules in this connection are as under:

a.) This facility is offered in all satisfactorily conducted accounts of

individuals without making distinction about their status, i.e.
Savings Bank, Current, or Overdraft Account

b.) It is available in the normal course of business.

c.) Withdrawals against such cheques are permitted on REQUEST.

However, withdrawal is not allowed in case of MINOR, STAFF &
NRI accounts.

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d.) This facility is available for local (as per clearing house practice)
as well as outstation cheques.

e.) At a time, maximum credit per account NOT TO EXCEED Rs.

15,000/-

f.) No stipulation of minimum balance for extending this facility.

g.) Charges for withdrawal are Rs. 25/- in case of outstation

cheques and Rs. 5/- for local cheques per cheque. Collection
charges for outstation cheques are recovered in addition to the
above. ( Charges inclusive of Service Tax.)

h.) The facility is also allowed to the customers at the Bank's

Extension Counters subject to the usual precautions taken by
branches in this regard.

i.) While immediate credit of cheque amounts to grant of advance,

non-charging of interest on such cheque of the face value upto Rs.
15,000/- is not viewed as violation of Reserve Bank of India's
directive on interest rates on advances.

j.) In cases where cheques upto Rs. 15,000/- credited and returned
unpaid, interest for the period the bank has remained out of funds
are to be recovered at the rate applicable for clean loan alongwith
the principal. Further this facility to be reviewed in accounts where
cheques are returned unpaid frequently.

i.) No interest is to be charged to the customer for the period

between the date of credit of the outstation cheque lodged and its
return.

ii.) Interest is to be charged from the date of return of the cheque

till the reimbursement of money to the bank

iii.) Where the cheque is credited to a savings bank account, no

interest is payable on the amount so credited if the cheque is
returned unpaid.

25
2. Time Frame for Collection of Local/Outstation Instruments :
Cheques exceeding Rs.15,000/- :

(i) Drawn locally: To be credited to the customer's accounts and

they should be allowed to use the funds latest on the third working
day from the date of acceptance of the cheques. The branches
should ensure that the clearing instruments are sent on time for
clearing.

(ii) Drawn Outstation:

a.) The Jet Clearing System is in operation in our Bank at many

cities, for prompt collection and realization of outstation cheques /
instruments drawn on any Bank / Branch (including our Branches)
which are covered by Service Branches and Main Branches at 32
Centres. It is expected that the cheque presented for collection on
any day in a week should be credited atleast on the 5th day and
allowed to be withdrawn latest on the same day in the following
week (for e.g. Monday to next Monday). Such a facility is extended
to the customers even if the collection advices are not received
from the drawee centers.

b.) In respect of State capital centers where Jet Clearing System is

not operationalised and at other centers with more than 100 bank
offices credit to customer's account are given within 10 days with
full freedom to the customer to withdraw the amount, even if the
collection advices are not received from the drawee centers.

In order to limit the risks involved, the facility of giving credit to the
accounts as per item 2 (ii) a & b above may be extended to the
satisfactorily conducted accounts, upto a maximum amount of
Rs.15,000/- Where more than one cheque and/or cheques of the
value of more than Rs.15,000/- are deposited for collection in a
day or on subsequent days, withdrawal as per above instructions
are allowed upto a maximum of Rs.15,000/- so that at any point of
time the collecting bank will have an exposure for an amount not
exceeding Rs.15,000/- against any individual customer.

3.) Interest to be paid for delayed period of collection:

26
The customer is to be paid interest at the rate as applicable for
appropriate tenor of fixed deposit for the period of delay beyond 10
days in collection of outstation instruments. However, where
abnormal delay occurs (i.e. if the delay is beyond 21 days and also
in cases where the delay is due to slackness or negligence on the
part of staff concerned may be treated as abnormal delay), the
penal interest at the rate of 1% above fixed deposit rate applicable
for

abnormal delay caused by the branch in collection of outstation

instruments. However the interest is not payable on instrument lost
in transit. The interest may be paid only when such amount is
Rs.10 or more.

4.) Penal charges for delayed credit for/Electronic Clearing

System/ Electronic Funds Transfer/ Special Electronic Fund
Transfer :

ECS/EFT/SEFT service is available for transfer of funds across

about 8500 branches of banks situated in 15 Centres where
Reserve Bank of India manages the Clearing House. Those
centers are Ahmedabad, Bangalore, Bubaneshwar, Chandigarh,
Chennai, Delhi, Guwahati, Hyderabad, Jaipur, Kanpur, Kolkata,
Mumbai, Nagpur, Patna and Thiruvananthapuram. Under the EFT
system, the credit to the beneficiary's account should be afforded
by the bank on the same day of the settlement i.e. on the date of
credit of our account with the settlement bank (RBI or SBI as the
case may be). Any delay beyond T+1 day (i.e. transaction day + 1),
the beneficiary bank must compensate the customer at 1% above
fixed deposit rate applicable for the period of abnormal delay
caused by the branch for crediting the amount. However the penal
interest is not payable if remittance is not received by the
beneficiary bank and when the interest amount is less than Rs.
10/-.

5.) Bank Charges, Charging of interest etc. :

27
Service charges as prescribed from time to time and actual
postages (Regd. / speed post) or Courier Charges / out of pocket
expenses to be recovered fully.

For cheques returned unpaid in respect of which credit has already

been given, interest at commercial rate on the overdrawn amounts
from the date of allowing the withdrawal till the amounts are re-
imbursed.

BANK’S COMMITMENT

The Bank is committed to the following:

1 To provide checklists along with applications to SME

Proponents.

2 To issue acknowledgements upon proponent’s submission

of application forms.

3 To comply with the stipulated time norms for disposal of

applications.

4 To consider composite loans up to Rs.1 Crore.

5 To cover all eligible SSI advances up to Rs.25 Lakhs

without any collaterals or third party guarantee under
Credit Guarantee Fund Trust Scheme for Small Industries.

6 No collateral Security for loans up to Rs.5 Lakhs.

7 No collateral for loans over Rs.5 Lakhs and up to Rs.15

lakhs subject to good track record and financial position.

The issue of collateral security would be dealt with on

account-specific basis.

(i) To adopt Turnover Method prescribed by Nayak

Committee for all Working Capital advances up to Rs.5

28
 Crores or MPBF method for specific cases with operating
cycles longer than 3 months.

(ii) To offer interest concession up to 1% to Women

Entrepreneurs under Priyadarshini Scheme.

(iii) To consider short term loan facility up to Rs.25 Lakhs

under Star SSI Supreme Scheme at Sub-PLR Rates to
meet

temporary liquidity requirements of eligible creditworthy

borrowers with good track record.

BANK OF India’s COMMITMENT

1. To acknowledge loan applications.

2.
To issue applications accompanied by checklists.

3. To comply with time norms for disposal of applications, received

complete in all respects -
(a) 2 weeks for loan up to Rs.25,000/-
(b) 4 weeks for loan up to Rs.5 lakhs
(c) 8-9 weeks for loan over Rs.5lakhs
4.
No collateral security for loans up to Rs.5 lakhs.
No collateral for loans over Rs.5 lakhs and up to Rs.25 lakhs
5.

subject to good track record and financial position.

6. To consider composite loan up to Rs.100 lakhs.

7. To compute working capital requirements based on Nayak

29
 Committee norms. Loan quantum : minimum 20% of anticipated
annual turnover.
8. To cover loan accounts with limits up to Rs.25 lakhs without
collateral security/third party guarantee under CGFTSI, if
eligible.
9. To offer concession in interest rates up to 1% under
“Priyadarshini Scheme” (Scheme for women entrepreneurs).
10. To consider short term loan facility at Sub-PLR rates to meet
temporary liquidity requirements of eligible credit worthy
existing borrowers with good track record under “Star - SSI
Suprime Scheme”.
11. We also participate in -
(a) Rural Employment Generation Programme (REGP) of
KVIC.
(b) Credit Linked Capital Subsidy Scheme for Technology
Upgradation administerd by SIDBI.

What is image building & Brand Management ?

While experience is important, it does not entirely predict whether

a customer will stay with a brand. The automobile industry has
some good examples of this phenomenon. For many years,
Jaguar suffered from poor quality but still enjoyed strong customer
loyalty. Conversely, the Ford Taurus earned relatively good scores
for product quality but lost sales and market share.

Image may account for these disparities. Driving a Jaguar

connoted a certain elevated status in spite of the brand's poor
reliability; driving a Taurus lacked similar status, despite being

30
reliable. Through effective marketing, public relations and other
communication initiatives, customers can be coaxed to accept an
image of a brand even if they have no direct experience with that
brand.

A brand's image can best be understood by determining the

characteristics or attributions that people assign to that brand.
Image is the second most important factor in customer
commitment. The higher the brand image score, the more positive
the brand attributes,

which include being viewed as innovative, fun, customer-oriented,

reliable, etc.

Factors Effecting Image Building Products

(i). Customer Experience

The customer experience in retail banking is defined by the

convenience of branch locations, product offerings, transaction
channels, accuracy, fees and problem resolution. As previously
discussed, the ability to perform consistently in these areas is a
major

driver of satisfaction and directly contributes to a customer's level

of commitment to a brand.

31
Across all of the industries where we have measured Customer
Commitment, we consistently find that the customers' experience
is the best determinant of commitment. In fact, in most industries,
experience accounts for more than half of the level of commitment.
In the business wireless industry, for example, customer
experience accounts for 65%; in the restaurant industry, it's 64%.
The corresponding percentage in retail banking is 56%.

(ii). Customer Commitment

We believe that more meaningful insights can be attained when

overall satisfaction results are combined with an additional
measure of customer sentiment - commitment. This approach
yields a more complete measure of customers' attachment to their
banks. By combining satisfaction, brand image ratings and
customers' own propensity to be loyal, a more comprehensive
picture emerges. This provides a greater degree of banking
performance differentiation.

Much has been written about customer loyalty. No one in business

would deny that loyal customers are preferable to indifferent ones.
But analysis of the loyalty factor is often superficial. Typically,

32
loyalty is measured as the intent to repeat a purchase or
recommend a product or service to a friend or colleague. These
measures, while

important, describe only the outcome of loyalty, not the reasons for
being loyal.

The JDPA Customer Commitment Model aims to help companies

better understand what influences loyal behavior. It complements
our Customer Satisfaction Index in that the customer experience is
a major dimension affecting commitment. However, it differs by
considering additional factors that drive loyal behavior, such as the
image of a particular brand and the propensity of an individual
customer to be loyal. These factors describe the "emotional"
factors that affect the way a customer feels about a provider.

(iii). Transactional Satisfaction

When compared to our findings in other service-related industries,

retail banking ranks in the middle of the pack in terms of customer
satisfaction, similar to hotels and rental cars. This suggests the
industry has some room for improvement overall. However, the

differences between individual banks are fairly slight. Although

each industry offers a unique set of experiences, our research has
revealed that in industries or services where products are viewed

33
as commodities (as in banking), there tends to be less
differentiation in satisfaction ratings. Believing that most banks
provide similar products and services, consumers tend to rate
banks as basically the same.

But there are differences. JDPA's study finds that customers of

smaller institutions, such as credit unions and community banks,
tend to be more satisfied with their bank than are customers of the
largest banks. A few larger banks, however, have been able to
outperform not only the industry average but also the average
smaller bank. Cherry Hill, N.J.-based Commerce Bancorp and
Downey Savings and Loan, Newport Beach, Calif., are examples
of banks with a strong customer focus that also rank high on
convenience.

Branch convenience is just a piece of the story. To measure

customer satisfaction, we have developed an index of 52 core
questions to measure various factors critical to the customer

experience: product, process, people, presentation and price -

what we call "the five Ps."

For the banking industry, "transactional" satisfaction dominates the

performance ratings because banking is a business built on
transactions, such as deposits, withdrawals, lending, etc. The
transaction factor is further subdivided into measures that gauge
34
satisfaction where the transaction is conducted - whether in-person
at the branch or via remote channels such as the call center, ATM
or online. Interactions at the branch, ATM and online tend to have
the greatest impact on customer satisfaction.

Along with transactions conducted via a customer service

representative, online banking is the transaction channel with the
highest average satisfaction level. With a higher percentage of
customers who use the online channelCustomers who visit the
branch less often have a slight propensity to be less satisfied and
less committedThe relationship between branch types and
satisfaction is difficult to ascertain. Downey Savings, with more
than half of its branches located in supermarkets, earns well above
average overall satisfaction. The ATM channel can help boost
satisfaction and commitment scores in some cases. Wells Fargo
customers use ATMs more frequently for transactions In fact, ATM
activity represents the only transaction method that Wells Fargo
customers rate higher than the industry average.

Many people use ATMs but don't rate the experience as positively.
These lower ratings occur despite the fact that fewer Union Bank
and Huntington Bank customers report an out-of-service ATM or
one that's missing supplies; that's nearly one-and-a-half times
better than the industry average.

35
(iv). Other Satisfaction Drivers

While customer transactional experience dominates the overall

satisfaction ratings, perceptions of convenience, competitive
product offerings and fees, financial statements and problem
resolution are

also important. By understanding the relative importance of each

factor to satisfaction, a financial services provider can easily
prioritize improvement efforts and direct resources to boost
customer satisfaction. A poor problem resolution rating, for
example, may flag training issues to be addressed or a negative
effect of a bank policy.

Overall, problem resolution accounts for a small percentage of the

customer's experience. But for those customers who actually
experience a problem (one-fourth of those surveyed did), problem
resolution becomes the most important element influencing their
banking satisfaction.

The survey identified Seattle-based as one bank doing a good job

of addressing service problems customers are more satisfied with

problem resolution, despite the fact that more of them experience

problems. This is an exception. Most of the high-satisfaction banks

36
 minimize problems that customers experience, and nearly all of the
survey leaders garner fewer than the average number of
problems.Satisfaction with product offerings doesn't vary much
between banks, but Commerce and a few others earn high ratings.

Bank of India’s Image Building Products

Home Loan

Salaried employees, Professionals like Doctors,

Eligibility Home Lawyers, Engineers, Chartered Accountants, Self-
employed persons. Requests are also considered in
special cases from Group of individuals, NRIs, PIOs,
HUF, Prop. Firm, Partnership firms and corporate.
Purpose  To purchase/construct house/flat
 To renovate/extend/repair existing house/flat.
 To purchase a plot of land for construction of house.
 To acquire household articles alongwith the
house/flat-for furnishing the house/flat.
 To takeover housing loans extended by other
banks/Fin. institutions/NBFCs.

Quantum of  For construction/purchase of a house/flat-Rs.300

Loan lacs
 Repairs/renovation/extension/addition to house/flat -
Rs.20 lacs
 Purchase of a plot - Rs.30 lacs
 Purchase/acquire household articles for furnishing
the house/flat - Rs.1.00 lac. (15% of Home Loan
amount)

Minimum size of Housing Loan:-

At Metro and Urban Centres :-Rs. One Lakh

37
 At Rural and Semi Urban Centres :-No minimum size of
loan.

Processing One time @ 0.55% of loan amount min. Rs. 1000/- and
charges max. Rs. 5000/-
Margin For limits upto Rs.10 lakhs à 15% *
For limits more than Rs. 10 lakhs à 20% *

*of the cost of construction/acquisition/renovation /

extension/repair etc.
Note :
Cost incurred by the proponent in the form of land already
purchased/acquired by him/her (from their own sources)
can be accepted as part of abovesaid margin at the
request of proponent.
Highly flexible - maximum 20 yrs. including moratorium
Repayment(can period of 18 months (max.) in monthly installments.
be customised) Repayment will start on completion of
construction/purchase of house/flat or 18 months after first
disbursement, whichever is earlier.

Eligible Calculation of quantum of loan is related to

Quantum of Income/repayment capacity of proponent/borrower.
Loan/ EMI 48 times of gross monthly salary
Salaried Employees : or 4 times of gross annual
income based on I-T Returns.
Self-employed/
Professionals
4 times of their Gross annual
/Individuals
income based on I-T Returns
Engaged in Trade
/Commerce/Business
Chartered 5 times of Gross annual income
Accountants based on I-T Returns.
6 times of Gross annual Income
Doctors
based on I-T Returns
HUF/Proprietorship / 4 times of cash accruals
Partnership Firm/ (PAT+Depreciation) as per their
38
 Company Balance Sheet/P&L Account
Net take home pay/income (net
of EMI of Proposed loan) should
In case of
not be less than 35% of the
Individuals:
gross monthly salary/income of
applicant(s)
In case of
HUF/Proprietorship/
Partnership DSCR should be minimum 1.5.
firm/Company :

Fees /  No administrative fees

Charges  No commitment charges

Prepayment charges :

i) No charges, if pre-payment is made from own

sources of the borrower

ii) 0.65% p.a. on the outstanding loan amount for

remaining maturity of the loan, subject to max.2.25% of
outstanding loan amount in case of take over by other
bank/FI.

Rate of Interest Upto 5 5-10 yrs Over 10

yrs yrs
Floating Rate 8.00 8.50 9.00
(% p.a. at monthly
rest)
Fixed Rate(% p.a. at monthly rest)
Upto 5 yrs. Over 5 yrs.
9.25 10.00*
*To be reset after 10 years

Interest on daily reducing balances applicable to residents

as well as non-residents.
Switchover Switchover from Fixed to Floating Rate of Interest or vice-
from Fixed to versa is permitted subject to levy of
Floating Rate conversion charges as under:
39
of Interest or
vice-versa i) Fixed to Floating ROI : @ 0.25% p.a. on o/s balance for
the remaining maturity of the loan.

ii) Floating to Fixed ROI : @ 0.40% p.a. on o/s balance for

the remaining period of loan.

For (i) and (ii), maximum charge will be 2.10% of

outstanding balance.

Disbursement  Request for 100% disbursement before completion of

in advance house/flat can be permitted subject to availability of
additional security of 125% of the unsecured portion
of loan amount to be disbursed.
Security  Equitable Mortgage (1st charge) on land/flat/house.
 Personal guarantee
Additional i. Free Personal Accident Insurance cover for the borrower
Incentives (covering accidental death as well as permanent total
disablement) as per terms of insurance policy covering
loan outstanding as on the date of accident.
ii. Loan amount of Rs.100,000/-(15% of home loan -
max.Rs.1 lac) for furnishing the house/flat at a rate of
interest as applicable to housing loan under the scheme.
Life Insurance cover to housing loan borrowers
against risk of death during tenure of loan under
Group Insurance Scheme in tie up with ICICI
Prudential Life Insurance Co. Ltd.
 Insurance cover is optional.
 Low/ affordable premium rates.
Insurance cover at a discounted rate in case of
younger joint borrower.
 Bank will grant loan for meeting the premium
amount payable upfront (single premium). Loan for

 premium will increase EMI only marginally.

 Avoids home loan burden on the family as home
loan comes with Life Insurance cover. Protection
against loan amount.

40
  Scheme is simple and hassle free.
 Higher non-medical limit: Age upto 45 years : Rs. 10
lacs, Age above 45 years : Rs. 8 lacs.

 Insurance premium is eigible for tax benefit u/s 80 C

and claim proceeds are tax free u/s 10(10D), as per
prevailing Income-tax laws
Others Substantial Tax benefits available (as per applicable
Income-tax laws) on:-
 Repayment of Instalments of Housing Loan

 Payment of interest on Housing Loan

41
 Personal Loan

Eligibility Personal Salaried employees, Professionals and individuals with high

networth, regula
r pensioners or family pensioners drawing regular monthly
pension through Branch, Staff members, retired employees
(other than dismissed/compulsorily retired) of our Bank.
Types of advance Demand/Term Loan/Overdraft (reducible as per repayment
schedule)
Overdraft limit (not reducible as per repayment schedule)
maximum upto Rs.1 lac to confirmed permanent employees of
Central/State Govt./Reputed Corporates and PSU's.
Purpose Clean/Unsecured loans Secured loans

 Marriage
expenses of self,
son, daughter or a  Repayment of existing housing
dependent near loans from other banks/Financial
relative. Institutions, etc.
 Medical Expenses  Repairs/Renovation/Extension of
incurred/to be House property.
incurred for self,  Education of self, spouse,
spouse, children, children, near dependent
dependent near relatives.
relative.
 For education of  Purchase of consumer durables,
self/spouse/childre computers, professional
n/ near dependent equipments etc
relatives.
 For repairs/
renovation/
extension of
existing house/flat.
 Any other personal
expenses of
bonafide nature as

approved by the Bank

Max. Loan Rs.2.00 lacs Rs.10.00 lacs
42
Min. Size of loan Minimum size of loan
:-At Metro and Urban Minimum size of loan :-At Metro and
Centres : Rs.10,000/- Urban Centres : Rs.10,000/-
At Rural and Semi At Rural and Semi Urban centres: No
Urban centres: No minimum size of loan.
minimum size of loan.
Eligible Amount 10 times of net monthly 20 times of Gross monthly emoluments
emoluments in case of in case of salaried employees
salaried employees OR
OR 100% of gross average annual income
50% of gross annual as per last three Income Tax Returns
income as per last for Professionals/Individuals of high
Income Tax Return for networth
Professionals/Individuals Pensioners : 20 times of monthly
of high networth pension (Max. Loan amt : Rs.
Pensioners : 10 times of 1,00,000/-)
monthly pension (Max.
Loan amt : Rs. 50,000/-)
Rate of Interest 2.5% above BPLR Min. 2.0% above BPLR Min. 13.25% p.a. at
(On daily reducing 13.75% p.a at monthly monthly rests
balances) rests
For Senior citizens :
Loans upto Rs.50,000/-
@ BPLR at present
11.25% p.a. at monthly
rests
Repayment 36 Equated monthly Maximum 60 Equated monthly
instalments w.e.f. one instalments w.e.f. one month after first
month after first disbursement from loan account.
disbursement.
Exceptional cases upto
60 months

Security Equitable/Legal Mortgage of commercial or residential

properties.
Hypothecation charge on assets acquired.
Collateral security in the form of pledge of gold/gold ornaments,
NSC/Indira Vikas Patra, Bonds, Assignment of LIC policies,
Relief Bonds etc.
Processing/Handling - One time @ 1.10% of loan amount Min. Rs.750/- and Max.
charges Rs.2500/-
Pensioners: One time @ 1.10.% of loan amount, min. Rs. 500/-

43
 and max. Rs. 1,100/-.

Mortgage loan

This scheme provides loan/overdraft facility against mortgage of

property at low rate of interest. The scheme is for people engaged
in trade, commerce & business and also professionals & self
employed, Prop. Firm, partnership firm, companies, NRIs and
individuals with high net worth including salaried people,
agriculturists and staff members. The product provides an
opportunity to customers to borrow against a fixed asset (mortgage
of property) at a short notice without much paper work/attendant
hassles.

44
 Product BOI Star Mortgage Loan Scheme
Purpose a. To meet the credit needs of trade, commercial
activity, other general business, Profession as also for
their bonafide requirements.
b. To meet marriage or medical or educational
expenses of family members including near relatives.
c. To undertake repairs/renovation/extension to the
residence/commercial property.
d. Purchase of consumer durables.
e. To purchase/construct house/flat, purchase of plot.
f. To purchase 2/4 wheeler vehicles.
g. For going on pilgramage/tours/excursions, etc.
h. Repayment of existing loans from other Banks/FIs.
Target People engaged in trade, commerce and business,
customers Professionals, Self-employed, Prop. Firms, partnership
(Eligibility) firms, HUFs (excluding partnership firms where HUF
is a partner), companies, NRIs, individuals with high
networth, salaried people, agriculturists, staff members.
Type of Demand/Term Loan/Overdraft (reducible as per
advance repayment schedule).
Overdraft facility (not reducible as per repayment

schedule) can also be permitted to eligible customers

(other than salaried people).
Quantum (Rs. in lacs)
of advance Min. Max.
a. For agriculturists 0.50
2.00
b. For Others :Individuals/Prop. firm 1.00
50.00
Partnership firm/

Company 1.00
100.00
:Prop./Partnership
firm/company
1.00 100.00
* ZM and above, may permit limit upto Rs.100 lacs as
per their delegated authority.

45
Calculation The sanctioned limit is to be related to the value of
of security & repayment capacity of borrower, subject to :
quantum i. Salaried employees :
of advance  48 times of monthly net emoluments (take home
salary).
OR
 4 times of net annual income with other rental
income from property etc. based on Income-tax
returns.

ii. Self-employed/professionals/ individuals engaged in

trade/ commerce/ business- 4 times of their net annual
income based on income-tax returns.
iii. Proprietorship/Partnership Firm/Company - Four
times of Cash-accruals (i.e. PAT+ Depreciation) as per
their Audited Balance

Sheet/ P & L Account

Note:
1. For individuals :
While fixing the limit , it is to be ensured that the net
take home pay (net of EMI of proposed advance ) is
not less than 30% of gross income of the applicant. For
Prop. Firm/Partnership firm/Company: DSCR : Min. 1.5
2. Limit prescribed would be subject to a Maximum of
70% in case of salaried employees(50% in other
cases) of value of property or eligibility level, whichever
is lower.
Margin Salaried Employees 30% *
Others 50% *
*On value of property (assessed by Bank's approved
valuer).
Rate of @ BPLR, at present 11.25% p.a. at monthly rests.
Interest Interest concession for woman beneficiaries 0.25% p.a.
Repayment In accounts where regular Overdraft facility is not
proposed. :-
Within a period of eight years by way of EMIs. The
repayment shall commence from the month
subsequent to the month in which final disbursement is
made or 6 months from the first disbursement,
Whichever is earlier. In case of agriculturists : The
repayment will be related to the generation of farm

46
 income from crops and other subsidiary activities.

Security Equitable/Legal Mortgage charge over property in the

name of applicant or his/her spouse or parents or third
party. The person in whose name the property to be
mortgaged stands should either be a borrower/co-
borrower or a guarantor.
Note :
a. The property offered should be a residential or
commercial building or a plot of land
(residential/commercial).
b. The property should be self occupied or leased out
to acceptable individuals, government agencies, PSUs,
Corporates, etc.
c. Agricultural land is NOT accepted as security for this
facility .
Processin 1. Accounts repayable as per Stipulated instalments :-
g Fees - One time @ 1% of Loan amount. Min.Rs.1500/- and
max. Rs30000/-.
2. Overdraft Limit ( not reducible as per repayment
schedule ) :
- 0.25% of the sanctioned limit, Min. Rs.750/- and Max.
Rs.7000/- on annual basis.
- Documents charges, advocate fee, architect fee etc.
on actual basis.
Equitable General :
Mortgage i. Limits exceeding Rs.25 lacs upto Rs.50 lacs -
Fee Rs.5,750/-
ii. Limits exceeding Rs.50 lacs - Rs.11,500/-
SSI :
i. Limits exceeding Rs.25 lacs upto Rs.50 lacs -
Rs.3,000/-
ii. Limits exceeding Rs.50 lacs - Rs.6,000/-

Auto finance

47
The Scheme provides loan for purchasing 2/4 wheeler vehicles
(like car, scooter, motorcycle etc.). Maximum amount of loan is Rs.
25 lacs, depending upon cost of vehicle & income of proponent, at
attractive rate of interest and easy repayment plan.

Product BOI Star Autofin Scheme

Eligibility Salaried employees, Professionals, Self-
employed, individuals with high networth,
People engaged in trade/commerce/
business, Pensioners, Farmers, Prop. Firm,
Partnership firm, Companies (Pvt./Public
Ltd.), Staff Members, Retired employees
(other than dismissed/compulsorily retired)
of our Bank.
Purpose Purchase of two/four wheeler vehicles (like
car, scooter, motorcycle etc.)
Type of Advance Demand/Term Loan (reducible as per
repayment schedule)
Quantum of Loan Max.Rs.25 lacs
Minimum size of loan :-At Metro and Urban
Centres : Rs.10,000/-
At Rural and Semi Urban centres: No
minimum size of loan.
Eligible Amount i. Salaried employees :- 24 times of
monthly Gross emoluments.
ii. Other than Salaried employees, Farmers
& Pensioners :-
- Two times of gross average annual
income as per last three Income-tax
returns.
- In case of Propreitorship/Partnership firm
& Company: Two times of average annual
Cash accruals (i.e. PAT+ Depreciation) as
per their last three Balance - Sheet/ P & L
account.
iii. Pensioners : 24 times of monthly
pension (Max. loan : Rs. 2 lacs)

iv. Farmers: Depending upon Farmer's

income, his repayment capacity/ability to
service the debt as is being done in case of

48
 agricultural loans.

Rate of Interest (on New Vehicles : 1.50% below BPLR,

daily reducing Min.9.75% p.a. at monthly rests.Second
balance) hand vehicles : 1.00% below BPLR,
Min.10.25% p.a. at monthly rests.
Repayment Car: Max.72 EMIs
(New Vehicles) Scooter/motorcycle/Two Wheelers: Max.60
EMIs w.e.f. one month after first
disbursement from loan account.
Purchase of Second -Age of vehicle : Upto 3 years old from the
hand vehicle:- date of first registration- -Repayment
Period : Not to exceed five years.
- Minimum Margin : 30% of depreciated
value or value assessed by valuer or sale
consideration, whichever is lower.
- Obtention of Comprehensive Insurance
Policy.
Security
i. Hypothecation of vehicle to be purchased
out of Bank finance.
ii. Charge to be registered with RTO.
Processing/ Handling One time @ 1.10% of the loan amount
Charges Min. Rs.750/-, Max. Rs.2500/-

Pensioners : One time @ 1.10% of loan

amonut Min. Rs.500/- Max. Rs.1,100/-

Education loan

Computer certificate courses of reputed institutes accredited to

Department of Electronics or institutes affiliated to university.

 Courses like ICWA, CA, CFA, etc.

 Courses conducted by IIM, IIT, IISc, XLRI, NIFT, etc.

49
  Courses offered in India by reputed foreign universities with
prior approval of Head Office.
 Evening courses of approved institutes.
 Other courses leading to diploma/degree, etc. conducted by
colleges/universities approved by UGC/Govt./AICTE/AIBMS/
ICMR, etc.
 Courses offered by National Institutes and other reputed
private institutions with prior approval of Head Office.

b) Studies abroad:
 Graduation : For job oriented professional/technical courses
offered by reputed universities.
 Post Graduation : MCA, MBA, MS, etc.
 Courses conducted by CIMA - London, CPA in USA, etc.

2. STUDENT'S ELIGIBILITY:
 Should be an Indian National;
 Secured admission to professional/technical courses in India
or Abroad through Entrance Test/Merit based selection
process.

3. EXPENSES CONSIDERED FOR LOAN :

 Fee payable to college/school/hostel.
 Examination/Library/Laboratory fee.
 Purchase of books/equipments/instruments/uniforms.
 Caution deposit/building fund/refundable deposit supported
by Institution bills/receipts.
 Travel expenses/passage money for studies abroad.
 Purchase of computers - essential for completion of the
course.
 Any other expense required to complete the course - like
study tours, project work, thesis, etc.

4. QUANTUM OF FINANCE :
Needbased finance subject to repaying capacity of the
parents/students with margin and the following ceilings :

 Studies in India - Maximum Rs.7.50 lakh

 Studies abroad - Maximum Rs.15.00 lakh.

5. MARGIN :

50
Upto Rs.4 lakh : Nil
Above Rs.4 lakh - Studies in India : 5%
Studies Abroad : 15%

6. SECURITY:
Upto Rs. 4 lakh : No security
Above Rs.4 lakh & upto Rs.7.5 lakh : Collateral security in the form
of a suitable third party guarantee.
Above Rs.7.5 lakh : Collateral security of suitable value or suitable
third party guarantee alongwith the assignment of future income of
the student for payment of instalments.

7. RATE OF INTEREST:
 Upto Rs.15 lakh : @BOIBPLR presently 11.25%p.a.
 Simple interest during the repayment holiday/moratorium
period.
 Penal interest @2% for loans above Rs.4 lakh for the
overdue amount and overdue period.
 Int. Concession of 0.50%p.a. for woman beneficiaries
 1% int. concession if interest is serviced during moratorium
period, where repayment holiday is specified for
interest/repayment under the scheme (concession available
for moratorium period)

8. REPAYMENT:
Repayment holiday/Moratorium : Course period + 1 year or 6
months after
getting job, whichever is earlier.
 The loan is to be repaid in 5-7 years after commencement of
repayment.

9. PROCESSING CHARGES:
No processing/upfront charges.
Documents charges at actual.

Star IPO

51
 Investing in Capital market - New Issues Bank of
Product
India's Star - IPO is a tailor made scheme
Eligibility
Individuals who have PAN Number and Demat
account with us.
To subscribe to Initial Public Offerings (IPO) including
Purpose
through book building.
Type of Facility Demand Loan
Margin
50% * (subject to RBI directives)
Period of Loan Maximum 60 days
Rate of Interest 0.75% below BPLR. Min. 10.50% p.a.
Fee and 0.06% of loan amount exclusive of Stamp duty, if any
Charges to be paid
Quantum of
Max. Rs.10.00 lakhs per borrower
Loan

Bank of India STAR e-Pay

BOI STAR e-Pay - is a useful service that provides you a single

point of contact for all your payment needs.

At BOI STAR ePay you can pay your bills and make other
payments online. Instead of writing a cheque each time, now you
can use any device connected to the Internet (computer, kiosk,
etc) and make payments with the click of a mouse.
 no more late payments
 no more queues
 no more hassles of depositing cheques

In effect, through BOI STAR ePay you can now make All Your
Payments at a Single Location, anytime. You can also download
and fill up the BOI STAR ePay Application Form and submit the
52
Form to your Bank of India bank branch. We will add your Billers
for payment through BOI STAR ePay.

Currently BOI STAR ePay is available in the cities of Ahmedabad,

Bangalore, Bhopal, Chennai, Delhi, Hyderabad, Indore, Kolkata,
Mumbai, Pune, Surat, Trivandrum, Chandigarh and Lucknow.

'Star Diamond Banking'

Bank of India offers you 'Star Diamond 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
Banking status could be the ace up your sleeve, making
transactions hassle-free and banking that much simpler. So be a
part of a new era in banking, one in which we can share an
exclusive and cherished relationship.

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.

Kisan Credit Card Scheme

53
  A green card (Kisan Credit Card Scheme) has been
introduced to help farmers to reap a rich harvest. This card
helps the farmer to raise short-term funds For
Agriculture/Other farm-based activities, on an on-going
basis, with very flexible and friendly Repayment terms.

 Bank of India, issues Bank Guarantees, on behalf of their

customers, in favor of third parties like Government
Departments, Public- Sector Organizations, etc.
 BoI issues both types of Guarantees viz. Performance
Guarantee and Financial Guarantee.
 The type of Guarantee, track record of customers and their
financial position are the guiding factors in deciding the
Guarantee limit, security and margin

Export fin.

Pre-Shipment Finance:

 Packing Credit in Rupees.

 Packing Credit in Foreign Currency.
 Advances against incentives receivable from the Govt.
 Advances against duty-drawback.

Post-Shipment Finance:
 Purchase and discount of Export Documents under
confirmed orders.
 Negotiation / payment / acceptance of documents under L/C.
 Advances against Export Bills sent for collection.
 Export Bills rediscounted in Foreign Currency.

54
1. Eligible Individuals, salaries class, traders and
businessmen, HUFs, professionals,
pensioners, corporate, charitable trusts,
educational institutions, societies and other
voluntary organizations.
2. Minimum Rs.5, 000/-
Deposit
3. Maximum No ceiling
Deposit
4. Type of Deposit FDR/MIC/QIC/DBD
5. Tenure Minimum: 6 years - Maximum: 10 years
6. Rate of interest 6 – 8 years – 7.5%* p.a. (Fixed Rate)
Above 8 years to 10 years – 8%* p.a. (Fixed
Rate)
*Additional interest rate of 1% p.a will be
applicable for Senior Citizens
*1% extra for staff members
7. Premature Permitted
withdrawal For premature withdrawal the rate of interest
available shall be 1% p.a. below the rate
applicable for the period for which the
deposit has remained.
(No penalty if the deposit is prematurely
withdrawn for the purpose of reinvestment
for a period longer than the remaining
period of the original contract of the
deposit.)
8. Applicability All branches in India
9. Nomination Available
Facility
10. Advance Facility Available @ 2% p.a. over the Term Deposit
Receipt rate. Margin: 10%
11. Other Terms and Same as applicable to normal Term
Conditions Deposits.

Shatabadi Deposit Scheme

55
BOI Savings Plus Scheme * (Deposit Product)
This product is a combination of our short deposit scheme and our
savings bank scheme with sweep-out and sweep-in facility to take
care of withdrawals if any.
 Facility is available at Fully Computerized Branches.
 All Savings Bank Accounts subject to minimum balance criteria
of Rs.25,000/- in Savings Bank and Rs.10,000/- in BOI
Savings Plus account.
 Subject to the minimum balance of Rs.25,000/- in Savings
Bank Account, an amount above Rs.25,000/- will be swept out
to the Short Deposit portion in multiple of Rs.5000/- for a
maximum period of 6 months or such tenure as opted by the
customer only on 1st and 16th of a month every month . the
sweep out happens only once in a fortnight.
 To meet urgent requirement of funds in the Savings Bank
portion, funds in multiples of Rs.5000/- will be swept-in from
Fixed Deposit portion on last-in first-out (LIFO) basis subject to
availability of funds
 Automatic renewal facility for original tenure of deposit.
 A quarterly charge of Rs.200/- would be levied whenever the
balance in the Savings Bank Account falls below i.e. Rs.25,
000/-.
 Rate of Interest in the fixed deposit portion will be applicable
on the tenure of the deposit as decided by the customer and
will be calculated on quarterly compounding basis. Savings
Bank portion will continue to earn interest at 3.5% per annum
as per RBI directives at present.
 TDS as applicable.

Benefits to Customers

 Opportunity to earn higher interest on idle funds in Savings

Bank Account (Short Term Funds).
 Automatic renewal facility will take away the botheration for

56
 keeping track of various maturity dates.
 No loss of interest on account of before maturity penalties.
 For the period the SDRs have run, the customer always gets
the applicable rate of interest.
 Facility to earmark amounts for specific purpose in BOI Saving
Plus account.
 Opportunity to keep the funds liquid and at the same time earn
attractive interest on it.

Other Incentives:
(1) Free issue of our International Debit Cum- ATM card
(2) A personalized chequebook on request.
(3) Free remittance up to Rs. 25,000/- under MBB facility.

57
 Banks Prefered By People

35

30 28.6
25.4
25

20
15.9 15.9 Series1
15
11.1
9.5
10 7.9
4.8
5 3.2
1.6 1.6
0
TI

I
B
H I
I

FC

B
B
M

BC
IC

AB
BO

SB

PN
BO
U

PS
BO

IC
D

O
Peoples are preferred HDFC bank then Bank of India Punjab
National Bank and State Bank of India is getting equal preference
then Bank of Baroda and least preferred bank’s are bank of
Maharastra and Punjab and Sindh Bank at Ambala Cantt.

58
 Prefered Accounts

100 84.1
80
60
39.7 Series1
40
20 4.8
0
Current A/C Saving A/C Fixed Deposit
A/C

According to the surveys peoples are invested there money on saving

banks rather then Fixed Deposit A/C Current A/c only for those
people those are doing Business and doing daily routine transactions.

Ranking Given By People

59
Descriptive Statistics

N Minimum Maximum Mean Std.

Deviation
BOI 63 1 8 3.81 1.87
SBI 63 1 11 4.65 2.63
HDFC 63 1 10 3.76 2.87
BM 63 2 11 7.79 2.10
UTI 63 1 10 5.29 2.98
ICICI 63 1 11 5.40 3.26
PNB 63 1 11 4.63 3.00
BOB 63 1 11 7.27 2.82
PSB 63 1 11 7.05 2.91
AB 63 1 11 8.05 2.57
OBC 63 1 11 8.25 2.61
Valid N
(listwise)

Ranking show that most preferred bank is HDFC bank, which is a

Private bank peoples like private banks because of their best facilities
and quick service. The peoples prefer Then Bank of India. And least
preferred bank is oriental bank of commerce.

60
These tables are showing the satisfaction level of the
customers according to their age basis.

Frequencies

Satisfied

Observ Expect Residu

ed N ed N al
1 61 31.5 29.5
2 2 31.5 -29.5
Total 63

AGE

Observ Expect Residu

ed N ed N al
1 4 15.8 -11.8
2 23 15.8 7.3
3 16 15.8 .3
4 20 15.8 4.3
Total 63

Test Statistics

Satisfie AGE
d
Chi- 55.254 13.254
Square
Df 1 3
Asymp .000 .004
. Sig.

61
A 0 cells (.0%) have expected frequencies less than 5. The
minimum expected cell frequency is 31.5.

B 0 cells (.0%) have expected frequencies less than 5. The

minimum expected cell frequency is 15.8.

These tables are showing that how many peoples are having loans
from banks.

Frequencies

LOAN

Observ Expect Residu

ed N ed N al
1 15 31.5 -16.5
2 48 31.5 16.5
Total 63

INCOME

Observ Expect Residu

ed N ed N al
1 30 15.8 14.3
2 24 15.8 8.3
3 6 15.8 -9.8
4 3 15.8 -12.8
Total 63

62
Test Statistics

LOAN INCOM
E
Chi- 17.286 33.571
Square
df 1 3
Asymp .000 .000
. Sig.

a 0 cells (.0%) have expected frequencies less than 5. The

minimum expected cell frequency is 31.5.

b 0 cells (.0%) have expected frequencies less than 5. The minimum

expected cell frequency is 15.8.

This table shows that how many peoples are having loans and which
type of loan they have.

Frequencies

Statistics

Type of loan

N Valid 63
Missing 0

Type of loan

Freque Percent Valid Cumula

63
 ncy Percent tive
Percent
Valid 0 47 74.6 74.6 74.6
2 5 7.9 7.9 82.5
3 4 6.3 6.3 88.9
5 7 11.1 11.1 100.0
Total 63 100.0 100.0

I am doing survey on total 63 people out of them 74.6% peoples are

not having any type of loan 7.9% peoples are having Home Loan
6.3% are having Mortgage Loan and 11.1% people are having
Vehicle Loan.

This table shows the Better Facilities Level of the Banks.

Frequencies

Statistics

Better Facilities

N Valid 63
Missing 0

64
Better Facilities

Freque Percent Valid Cumula

ncy Percent tive
Percent
Valid 0 2 3.2 3.2 3.2
1 25 39.7 39.7 42.9
2 36 57.1 57.1 100.0
Total 63 100.0 100.0

According to this table there are 39.7% peoples those are telling that
government banks provides better facilities and 57.1% people are
showing there interest on Private Banks and 3.2% peoples are giving
no comments on this issue.

Frequencies

e-Pay

Observ Expect Residu

ed N ed N al
1 11 31.5 -20.5
2 52 31.5 20.5
Total 63

INCOME

Observ Expect Residu

ed N ed N al
1 30 15.8 14.3
2 24 15.8 8.3
3 6 15.8 -9.8
4 3 15.8 -12.8

65
 Total 63

Test Statistics

e-Pay INCOM
E
Chi- 26.683 33.571
Square
df 1 3
Asymp .000 .000
. Sig.

a 0 cells (.0%) have expected frequencies less than 5. The

minimum expected cell frequency is 31.5.

b 0 cells (.0%) have expected frequencies less than 5. The

minimum expected cell frequency is 15.8.

These tables are showing that how many people are known about e-
Pay. And there are only 20% people know about e-Pay rest 80%
peoples are not aware about e-pay because it is not applicable in
Ambala Cantt.

Frequencies

Time Consuming

Observ Expect Residu

ed N ed N al
0 1 21.0 -20.0
1 28 21.0 7.0
2 34 21.0 13.0
Total 63

AGE

Observ Expect Residu

ed N ed N al
1 4 15.8 -11.8

66
 2 23 15.8 7.3
3 16 15.8 .3
4 20 15.8 4.3
Total 63

Test Statistics

Time AGE
Consu
ming
Chi- 29.429 13.254
Square
df 2 3
Asymp .000 .004
. Sig.

a 0 cells (.0%) have expected frequencies less than 5. The

minimum expected cell frequency is 21.0.

b 0 cells (.0%) have expected frequencies less than 5. The

minimum expected cell frequency is 15.8.

According to this Result there 39.5% respondents are saying

that bank work is time consuming and 59.5% respondents are
saying that bank work is not time consuming and only 2%
people are giving no comments on this issue.

Frequencies

Statistics

plastic Money

N Valid 63
Missing 0

67
plastic Money

Freque Percent Valid Cumula

ncy Percent tive
Percent
Valid 0 41 65.1 65.1 65.1
1 15 23.8 23.8 88.9
2 7 11.1 11.1 100.0
Total 63 100.0 100.0

This table show that 65.1% of respondents are not using plastic
Money and those are using plastic money there are 23.8% are using
Debit Cards and 11.1% are using Credit Cards.

RESEARCH METHODOLOGY

68
RESEARCH METHODOLOGY:

The project evaluates the financial performance one of the company with
help of the most appropriate tool of financial analysis like ratio analysis
and comparative balance sheet. Hence, it is essentially fact finding study.

Primary Data:
Primary data is the first hand information that is collected during the
period of research. Primary data has been collected through discussions
held with the staffs in the accounts department. Some types of
information were gathered through oral conversations with the cashier,
taxation officer etc.

Secondary Data:
Secondary data studies whole company records and company’s balance
sheet in which the project work has been done. In addition, a number of
reference books, journals and reports were also used to formulate the
theoretical model for the study. And some information were also drawn
from the websites.

Tools used in analysis:

 Ratio analysis
 Comparative balance sheet

69