Introduction Bank Product And Services:

The Indian economy is emerging as a one of the strongest economy of the world with
the GDP growth of more than 8 % every year. A strongest banking industry is important in
every country and can have a significant affect in supporting economic development through
efficient financial services. Banking sector play a vital role in growth and development of
Indian economy. After liberalization the banking industry in India under gone major changes.
The process of liberalization and globalization has strongly influenced the Indian banking
sector. A stable and efficient banking sector is an essential precondition to increase the
economic level of a country. Liberalization policy introduced in the banking sector in India led
to consolidated competition, efficient allocation of resources and introducing innovative
methods for mobilizing of saving. The ability of banks to analyze its financial position for
improving its competitive position in the market place. Most banks in India are currently
focusing an expanding their service network. A growing Indian economy, expanding their
various segments. After the recommendations of Narshinham Committee report with the entry
of many private players. Indian banking industry has transformed into a customer oriented
market. It now consists of multiple products and customer groups and various channels of
distribution. It is well known fact that an effective
and efficient banking system important for the long-run growth and development of the
economy. So, there is needed to make a comprehensive study into performance of banks in
India.

A Banking Sector performs three primary functions in economy,

the operation of the payment system, the mobilization of savings and the allocation of saving
to investment products.1 Banking industry has been changed after reforms process.

The Government has taken this sector in a basic priority and this
service sector has been changed according to the need of present days. Banking sector reforms
in India Strive to Banking industry has been changed after reforms process. The Government
has taken this sector in a basic priority and this service sector has been India Strive to Banking
industry has been changed after reforms process.

The Government has taken this sector in a basic priority

and this service sector has been changed according to the need of present days. Banking sector
reforms in India Strive to increase efficiency and profitability of the banking institutions as
well as brought the existing banking institutions face to face with global competition in
globalization process. Different type of banks differs from each other in terms of operations,
efficiency, productivity, profitability and credit efficiency. Indian banking sector is an
important constituent of the Indian Financial System. The banking sector plays a vital role
through promoting business in urban as well as rural area in recent year, without a sound and
effective banking system, India can not be considered as a healthy economy.2 The main
objective of this study to understand of how a bank is able to use the available resources to
increase the profitability and performance of banks and banks in India are performed well or
not.

Origin of the Word Bank’s:

It is generally said that the word "Bank" has been

originated in Italy. In the middle of 12th century there was a great financial crisis in Italy due
to war. To meet the war expenses, the government of that period a forced subscribed loan on
citizens of the country at the interest of 5% per annum. Such loans were known as 'Compare',
'minto' etc. The most common name was "Monte'. In Germany the word 'Monte was named as
'Bank' or 'Banke'. According to some writers, the word 'Bank' has been derived from the word
bank. It is also said that the word 'bank' has been derived from the word 'Banco' which means
a bench. The Jews money lenders in Italy used to transact their business sitting on benches at
different market places. When any of them used to fail to meet his obligations, his 'Banco' or
banch or bench would be broken by the angry creditors. The word 'Bankrupt' seems to be
originated from broken Banco. Since, the banking system has been originated from money
leading business; it is rightly argued that the word 'Bank' has been originated from the word
"Banco'. Whatever be the origin of the word ‗Bank‘ as Professor Ram Chandra Rao says, ―It
would trace the history of banking in Europe from the middle Ages.4 Today the word bank is
used as a comprehensive term for a number of institutions carrying on certain kinds of financial
business. In practice, the word 'Bank' means which borrows money from one class of people
and again lends money to another class of people for interest or profit. Actually meaning of
bank is not specifies in any regulation or act. In India, different people have different type of
meaning for bank. Normal salary earner knows means of bank that it is a saving institution, for
current account holder or businessman knows bank as a financial institutions and many other.
Bank is not for profit making, it creates saving activity in salary earner.

Meaning of Bank:

A Bank is an institution which accepts deposits from the general public

and extends loans to the households, the firms and the government. Banks are those institutions
which operate in money. Thus, they are money traders, with the process of development
functions of banks are also increasing and diversifying now, the banks are not nearly the traders
of money, they also create credit. Their activities are increasing and diversifying. Hence it is
very difficult to give a universally acceptable definition of bank. "Banking business" means
the business of receiving money on current or deposit account, paying and collecting cheques
drawn by or paid in by customers, the making of advances to customers, and includes such
other business as the Authority may prescribe for the purposes of this Act.
 Definitions of Bank:

Indian Banking Regulation act 1949 section 5 (1) (b) of the banking Regulation Act 1949
Banking is defined as.

Accepting for the purpose of the landing of investment of deposits of money from public
repayable on demand or other wise and withdraw able by cheques, draft, order or otherwise.

Bank means a bench or table for changing money.

-Greek History

Bank is an establishment for custody of money received from or on Behalf of its customers.
Its essential duty is to pay their drafts unit. Its profits arise from the use of the money left
employed them.

- Oxford Dictionary

Bank is an institution which traders in money, establishment for money, as also for making
loans and discounts and facilitating the transmission of remittances from one place to another.

-Western’s Dictionary

Bank means the place when money is kept safely, open an account with any bank and
make transaction with that bank is simply called as bank.

- Dictionary
 A bank is a financial institution and a financial intermediary that accepts deposits and
channels those deposits into lending activities, either directly by loaning or indirectly through
capital markets.

A bank may be defined as an institution that accepts deposits, makes loans, pays checks, and
provides financial services. A bank is a financial intermediary for the safeguarding,
transferring, exchanging, or lending of money. A primary role of banks is connecting those
with funds, such as investors and depositors, to those seeking funds, such as individuals or
businesses needing loans. A bank is the connection between customers that have capital deficits
and customers with capital surpluses.

Banks distribute the medium of exchange. Banking is a business. Banks sell their services to
earn money, and they must market and manage those services in a competitive field. Banks are
financial intermediaries that safeguard, transfer, exchange, and lend money and like other
businesses that must earn a profit to survive. Understanding this fundamental idea helps you to
understand how banking systems work, and helps you understand many modern trends in
banking and finance.

The services banks offer to customers have to do almost entirely with handling money or
finances for other people. Banks are critical to our economy. The primary function of banks is
to put their account holders' money to use by lending it out to others who are in need of the
same.

Money is a medium of exchange, an agreed-upon system for measuring the value of goods and
services. Once, and still in some places today, precious stones, animal products, or other goods
of value might be used as a medium of exchange. This system was used for centuries, before
the invention of money. People used to exchange the goods or services for other goods or
services in return. This system is also known as “Barter System” and an age-old method that
was adopted by people to exchange their services and goods. Roman soldiers were sometimes
paid in salt, because it was critical to life and was a scarce commodity at those times.

Anything with an agreed-upon value might be a medium of exchange. Today, many forms of
money are used. Money is any object or record that is generally accepted as payment for goods
and services and repayment of debts in a given socio-economic context or country. The main
functions of money are distinguished as: a medium of exchange; a unit of account; a store of
value; and, occasionally in the past, a standard of deferred payment. Any kind of object or
secure verifiable record that fulfills these functions can be considered money. Money simply
shows how much something is worth, whether it is a new gadget that you can purchase or two
hours of your labor. When you have money, a bank can act as your agent for using or protecting
that money.

Banks and money are essential to maintaining they impact the entire societies and nations.
Hence they are closely regulated and strict procedures and principles are advised to be
followed by the banks by various authorities and governments. In the United States, banks
may be chartered by federal or state governments and in India government decides the rules
for opening any banks or its branches.

From a business structure perspective, most of the Banks are corporations or cooperative
societies and may be owned by groups of individuals, corporations, or some combination of
the two. Around the world banks are supervised by governments to guarantee the safety and
stability of the money supply and of the country.

mutual fund

The mutual fund industry in India started in 1963 with the formation of Unit Trust of
India, at the initiative of the Government of India and Reserve Bank. Though the growth
was slow, but it accelerated from the year 1987 when non-UTI players entered the
Industry. In the past decade, Indian mutual fund industry had seen a dramatic
improvement, both qualities wise as well as quantity wise. Before, the monopoly of the
market had seen an ending phase; the Assets Under Management (AUM) was Rs67
billion. The private sector entry to the fund family raised the Aum to Rs. 470 billion in
March 1993 and till April 2004; it reached the height if Rs. 1540 billion.The Mutual Fund
Industry is obviously growing at a tremendous space with the mutual fund industry can
be broadly put into four phases according to the development of the sector. Each phase
is briefly described as under

Unit Trust of India (UTI) was established on 1963 by an Act of Parliament by the
Reserve Bank of India and functioned under the Regulatory and administrative control
of the Reserve Bank of India. In 1978 UTI was de-linked from the RBI and the Industrial
Development Bank of India (IDBI) took over the regulatory and administrative control
in place of RBI. The first scheme launched by UTI was Unit Scheme 1964. At the end of
1988 UTI had Rs.6,700 crores of assets under management.

1987 marked the entry of non- UTI, public sector mutual funds set up by public sector
banks and Life Insurance Corporation of India (LIC) and General Insurance Corporation
of India (GIC). SBI Mutual Fund was the first non- UTI Mutual Fund established in June
1987 followed by Canbank Mutual Fund (Dec 87), Punjab National Bank Mutual Fund
(Aug 89), Indian Bank Mutual Fund (Nov 89), Bank of India (Jun 90), Bank of Baroda
Mutual Fund (Oct 92). LIC established its mutual fund in June 1989 while GIC had set
up its mutual fund in December 1990.At the end of 1993, the mutual fund industry had
assets under management of Rs.47,004 crores.

1993 was the year in which the first Mutual Fund Regulations came into being, under
which all mutual funds, except UTI were to be registered and governed. The erstwhile
Kothari Pioneer (now merged with Franklin Templeton) was the first private sector
mutual fund registered in July 1993.

The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive
and revised Mutual Fund Regulations in 1996. The industry now functions under the
SEBI (Mutual Fund) Regulations 1996. As at the end of January 2003, there were 33
mutual funds with total assets of Rs. 1,21,805 crores.

In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was
bifurcated into two separate entities. One is the Specified Undertaking of the Unit Trust
of India with assets under management of Rs.29,835 crores as at the end of January 2003,
representing broadly, the assets of US 64 scheme, assured return and certain other
schemes.

The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC. It is
registered with SEBI and functions under the Mutual Fund Regulations. consolidation
and growth. As at the end of September, 2004, there were 29 funds, which manage assets
of Rs.153108 crores under 421 schemes.
 Banks provide a multitude of financial services beyond the traditional
practices of holding deposits and lending money. Commercial, retail, and central banks are
three main types.

Provide familiar services such as checking and savings accounts, credit cards, investment
services, and others. Historically, offered their services only to businesses, including credit
and debit cards, bank accounts, deposits and loans, and secured and unsecured loans. Due to
deregulation, commercial banks are also competing more with investment banks in money
market operations, bond underwriting, and financial advisory work.

economies and they impact the entire societies and nations. Hence they are closely regulated
and strict procedures and principles are advised to be followed by the banks by various
authorities and governments. In the United States, banks may be chartered by federal or state
governments and in India government decides the rules for opening any banks or its branches.

From a business structure perspective, most of the Banks are corporations or cooperative
societies and may be owned by groups of individuals, corporations, or some combination of
the two. Around the world banks are supervised by governments to guarantee the safety and
stability of the money supply and of the country.

mutual fund

The mutual fund industry in India started in 1963 with the formation of Unit Trust of
India, at the initiative of the Government of India and Reserve Bank. Though the growth
was slow, but it accelerated from the year 1987 when non-UTI players entered the
Industry. In the past decade, Indian mutual fund industry had seen a dramatic
improvement, both qualities wise as well as quantity wise. Before, the monopoly of the
market had seen an ending phase; the Assets Under Management (AUM) was Rs67
billion. The private sector entry to the fund family raised the Aum to Rs. 470 billion in
March 1993 and till April 2004; it reached the height if Rs. 1540 billion.The Mutual Fund
Industry is obviously growing at a tremendous space with the mutual fund industry can
be broadly put into four phases according to the development of the sector. Each phase
is briefly described as under
First Phase – 1964-87

Unit Trust of India (UTI) was established on 1963 by an Act of Parliament by the
Reserve Bank of India and functioned under the Regulatory and administrative control
of the Reserve Bank of India. In 1978 UTI was de-linked from the RBI and the Industrial
Development Bank of India (IDBI) took over the regulatory and administrative control
in place of RBI. The first scheme launched by UTI was Unit Scheme 1964. At the end of
1988 UTI had Rs.6,700 crores of assets under management.

Second Phase – 1987-1993 (Entry of Public Sector Funds)

1987 marked the entry of non- UTI, public sector mutual funds set up by public sector
banks and Life Insurance Corporation of India (LIC) and General Insurance Corporation
of India (GIC). SBI Mutual Fund was the first non- UTI Mutual Fund established in June
1987 followed by Canbank Mutual Fund (Dec 87), Punjab National Bank Mutual Fund
(Aug 89), Indian Bank Mutual Fund (Nov 89), Bank of India (Jun 90), Bank of Baroda
Mutual Fund (Oct 92). LIC established its mutual fund in June 1989 while GIC had set
up its mutual fund in December 1990.At the end of 1993, the mutual fund industry had
assets under management of Rs.47,004 crores.
  Third Phase – 1993-2003 (Entry of Private Sector Funds)

1993 was the year in which the first Mutual Fund Regulations came into being, under
which all mutual funds, except UTI were to be registered and governed. The erstwhile
Kothari Pioneer (now merged with Franklin Templeton) was the first private sector
mutual fund registered in July 1993.

The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive
and revised Mutual Fund Regulations in 1996. The industry now functions under the
SEBI (Mutual Fund) Regulations 1996. As at the end of January 2003, there were 33
mutual funds with total assets of Rs. 1,21,805 crores.

 Fourth Phase – since February 2003

In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was
bifurcated into two separate entities. One is the Specified Undertaking of the Unit Trust
of India with assets under management of Rs.29,835 crores as at the end of January 2003,
representing broadly, the assets of US 64 scheme, assured return and certain other
schemes.
The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC. It is
registered with SEBI and functions under the Mutual Fund Regulations. consolidation
and growth. As at the end of September, 2004, there were 29 funds, which manage assets
of Rs.153108 crores under 421 schemes.

 Types of Banks:

Banks provide a multitude of financial services beyond the

traditional practices of holding deposits and lending money. Commercial, retail, and central
banks are three main types.

Understand the difference between the three:

 Commercial Banks: Provide familiar services such as checking and savings

accounts, credit cards, investment services, and others. Historically, offered their
services only to businesses, including credit and debit cards, bank accounts, deposits
and loans, and secured and unsecured loans. Due to deregulation, commercial banks are
also competing more with investment banks in money market operations, bond
underwriting, and financial advisory
 work.

 Retail Banks: Developed to help individuals not served by commercial banks.

Provide basic banking services to individual consumers. These institutions help
customers save money, acquire loans, and invest. They also offer a wide range of
financial services to a broad customer base. Examples include savings banks, savings
and loan associations, and credit unions and examples of products and services include
safe deposit boxes, checking and savings accounting, certificates of deposit (CDs),
 mortgages.

 Central Banks: Banks formed, owned and regulated by the government to manage,
regulate, and protect both the money supply and the other banking institutions.
Guarantee stable monetary and financial policy from country to country. Typical
functions include implementing monetary policy, managing foreign exchange and gold
reserves, making decisions regarding official interest rates, acting as banker to the
government and other banks, and regulating and supervising the banking industry.
Central banks serve as the government's banker. Central banks issue currency and
 conduct.

Benefits of Banking:

 Safety: It’s risky to keep your money in cash as it could be lost, stolen, or destroyed.
Financial institutions keep your funds safe.

 Convenience: With banks, there's no need to carry cash. If you need cash, you can
easily access your funds virtually anywhere.

 Security: Banks follow stringent laws and regulations and at most banks, funds are
insured.

 Financial Future: As individual you'll have access to financial professionals to

help you. Knowledgeable advice of bankers is a valuable resource to help you build a
better financial future.
  Types Of Deposit account

 Savings account:

Indian Bank offers various type of savings accounts to its customers to serve their needs.
Customers can open a savings account with a minimum deposit of Rs. 1,000. Current Account.
A savings account is a deposit account held at a retail bank that pays interest but cannot be used
directly as money in the narrow sense of a medium of exchange (for example, by writing a
cheque). These accounts let customers set aside a portion of their liquid assets while earning a
monetary return.

 Current account:

Indian Bank offers various types of current accounts to its customers to serve their needs.
Customers can open a current account with a minimum quarterly average balance of Rs. 5000.
The current account includes deposits, withdrawals, and contra transactions. Such accounts are
also called the and Deposit Account.

 Types Of Loans
Home loan: Indian Bank offers various home loan schemes for those who desire to purchase
or construct the house at attractive interest rates.

A home equity loan is a type of loan in which the borrower uses the equity of his or
her home as collateral. The loan amount is determined by the value of the property, and the
value of the property is determined by an appraiser from the lending institution.
Home equity loans are often used to finance major expenses such as home repairs, medical
bills, or college education. A home equity loan creates a lien against the borrower's house and
reduces actual home equity.[1]
Most home equity loans require good to excellent credit history, reasonable loan-to-value and
combined loan-to-value ratios. Home equity loans come in two types: closed
end (traditionally just called a home-equity loan) and open end (a.k.a. a home-equity line of
credit). Both are usually referred to as second mortgages, because they are secured against the
value of the property, just like a traditional mortgage.
Home equity loans and lines of credit are usually, but not always, for a shorter term than first
mortgages. Home equity loan can be used as a person's main mortgage in place of a
traditional mortgage. However, one cannot purchase a home using a home equity loan, one
can only use a home equity loan to refinance. In the United States until December 31 2017, it
was possible to deduct home equity loan interest on one's personal income taxes. As part of
the 2018 Tax Reform bill[2] signed into law, interest on home equity loans will no longer be
deductible on income taxes.

There is a specific difference between a home equity loan and a home equity line of
credit (HELOC). A HELOC is a line of revolving credit with an adjustable interest rate
whereas a home equity loan is a one time lump-sum loan, often with a fixed interest rate.
With a HELOC the borrower can choose when and how often to borrow against the equity in
the property, with the lender setting an initial limit to the credit line based on criteria similar
to those used for closed-end loans. Like the closed-end loan, it may be possible to borrow up
to an amount equal to the value of the home, minus any liens. These lines of credit are
available up to 30 years, usually at a variable interest rate. The minimum monthly payment
can be as low as only the interest that is due. Typically, the interest rate is based on the prime
rate plus a margin.

Personal loan: Indian Bank offers 3 types of personal to its customers which caters to all
the urgent financial needs at attractive interest rates.

a loan is the lending of money by one or more individuals, organizations, or other entities to
other individuals, organizations etc. The recipient (i.e. the borrower) incurs a debt, and is
usually liable to pay interest on that debt until it is repaid, and also to repay the principal
amount borrowed.
The document evidencing the debt, e.g. a promissory note, will normally specify, among other
things, the principal amount of money borrowed, the interest rate the lender is charging, and
date of repayment. A loan entails the reallocation of the subject asset(s) for a period of time,
between the lender and the borrower.
The interest provides an incentive for the lender to engage in the loan. In a legal loan, each of
these obligations and restrictions is enforced by contract, which can also place the borrower
under additional restrictions known as loan covenants. Although this article focuses on
monetary loans, in practice any material object might be lent.

Two -wheeler loan: Indian bank offers two wheeler loan to its customers at attractive
interest rates and with easy repayment option of maximum 60 emis.

Car loan: Indian Bank can help avail loan on new or used four-wheeler vehicle with a margin
of 15% for a new vehicle and 40% for a used vehicle.

The most common method of buying a car in the United States is borrowing the money and
then paying it off in installments. Over 85% of new cars and half of used cars are financed (as
opposed to being paid for in a lump sum with cash).[1] Roughly 30% of new vehicles during
the same time period were leased.[1]

There are two primary methods of borrowing money to buy a car: direct and indirect. A direct
loan is one that the borrower arranges with a lender directly. Indirect financing is arranged by
the car dealership where the car is purchased. Legally, an indirect “loan” is not technically a
loan; when a car buyer obtains financing facilitated by a dealership, the buyer and dealer sign
a Retail Installment Sales Contract rather than a loan agreement. The dealer then typically sells
or assigns that contract to a bank, credit union, or other financial institution. Usually, the dealer
knows in advance which financial institution will buy the contract. The borrower then pays off
the financial institution the same as for a direct loan.[citation needed] Typically, the indirect
auto lender will set an interest rate, known as the "buy rate". The auto dealer then adds a markup
to that rate, and presents the result to the customer as the "contract rate".[citation needed] These
markups have been the focus of some regulatory scrutiny because they can cause variations in
interest rates that are not correlated with credit risk.[2][3]
Roughly half of new cars in the U.S. are financed by the captive financing arms of car
manufacturers, such as the Ford Motor Credit Company.[4] Captives have a smaller share of
the overall car financing market (new and used cars), along with banks, credit unions, and
finance companies. A small number of cars are financed directly by the dealership at "Buy
Here Pay Here" dealers, which cater to customers with subprime credit. Buy Here Pay Here
financing accounts for 6% of the total financing market.
Education loan: Indian Bank offers education loan to its customers in the top universities.
Customers can pay the college fee, purchase books, examination fees, etc.
A student loan is a type of loan designed to help students pay for post-secondary
education and the associated fees, such as tuition, books and supplies, and living expenses. It
may differ from other types of loans in the fact that the interest rate may be substantially lower
and the repayment schedule may be deferred while the student is still in school. It also differs
in many countries in the strict laws regulating renegotiating and bankruptcy. This article
highlights the differences of the student loan system in several major countries.

Citizens in India show that the Indian Nation Loan Scholarship Scheme which operated from
1963 would make the extra waste on expenditure for the reason of 'limiting', which means
only the people who really need to borrow would apply the student loan for the future
education. Because of this, most Indian students would be more careful to choose their jobs
in order to pay back the balance due.[6]
The Indian government has launched a website, vidyalakshmi, for students seeking
educational loans and five banks including SBI, IDBI Bank and Bank of India have
integrated their system with the portal. Vidya Lakshmi was launched on the occasion of
Independence Day i.e. 15 August 2015 for the benefit of students seeking educational
loans.[7] Vidya Lakshmi was developed under three departments of India i.e. Department of
Financial Services, Department of Higher Education and Indian Banks Association (IBA).

To bridge the constraint of increasing institutional fees, NSDL

e-Governance in India launched Vidyasaarathi portal to help
students seeking scholarship for studies in India or overseas.

Business loan: Indian bank offers business loan to its customers to meet urgent financial
need in business and provides easy repayment options and interest

A business loan is a loan specifically intended for business purposes.[1] As with all loans, it
involves the creation of a debt, which will be repaid with added interest. There are a number
of different types of business loans, including bank loans, mezzanine financing, asset-based
financing, invoice financing, microloans, business cash advances and cash flow loans.[2]

 MUTUAL FUND

Mutual fund is a trust that pools the savings of a number of

investors who share a common financial goal. This pool of money is invested in accordance
with a stated objective. The joint ownership of the fund is thus “Mutual”, i.e. the fund belongs
to all investors. The money thus collected is then invested in capital market instruments such
as shares, debentures and other securities. The income earned through these investments and
the capital appreciations realized are shared by its unit holders in proportion the number of
units owned by them. Thus a Mutual Fund is the most suitable investment for the common man
as it offers an opportunity to invest in a diversified, professionally managed basket of securities
at a relatively low cost. A Mutual Fund is an investment tool that allows small investors access
to a well-diversified portfolio of equities, bonds and other securities. Each shareholder
participates in the gain or loss of the fund. Units are issued and can be redeemed as needed.
The funds Net Asset value (NAV) is determined each day.

Investments in securities are spread across a wide cross-section of industries and sectors
and thus the risk is reduced. Diversification reduces the risk because all stocks may not
move in the same direction in the same proportion at the same time. Mutual fund issues
units to the investors in accordance with quantum of money invested by them. Investors
of mutual funds are known as unit holders.

Investment

Fixed deposit: Indian Bank offers fixed deposit schemes to its customers with the minimum
deposit amount of Rs. 100 and facilities like a loan, automatic renewal, etc.

A fixed deposit (FD) is a financial instrument provided by banks or NBFCs which provides
investors a higher rate of interest than a regular savings account, until the given maturity date.
It may or may not require the creation of a separate account. It is known as a term
deposit or time deposit in Canada, Australia, New Zealand, and The United States, and as
a bond in the United Kingdom and India. For a fixed deposit is that the money cannot be
withdrawn from the FD as compared to a recurring deposit or a demand deposit before
maturity. Some banks may offer additional services to FD holders such as loans against FD
certificates at competitive interest rates. It's important to note that banks may offer lesser
interest rates under uncertain economic conditions. The interest rate varies between 4 and
7.50 percent.[1] The tenure of an FD can vary from 7, 15 or 45 days to 1.5 years and can be as
high as 10 years.[2] These investments are safer than Post Office Schemes as they are covered
by the Deposit Insurance and Credit Guarantee Corporation (DICGC). However, DICGC
guarantees amount up to ₹ 100000(about $1555) per depositor per bank.[3] They also
offer income tax and wealth tax benefits.
Fixed deposits are a high-interest -yielding Term deposit and offered by banks in India. The
most popular form of Term deposits are Fixed Deposits, while other forms of term Deposits
are Recurring Deposit and Flexi Fixed Deposits (the latter is actually a combination of
Demand deposit and Fixed deposit)[citation needed].
To compensate for the low liquidity, FDs offer higher rates of interest than saving
accounts.[citation needed] The longest permissible term for FDs is 10 years. Generally, the longer
the term of deposit, higher is the rate of interest but a bank may offer lower rate of interest for
a longer period if it expects interest rates, at which the Central Bank of a nation lends to
banks ("repo rates"), will dip in the future.[4]
Usually in India the interest on FDs is paid every three months from the date of the deposit.
(e.g. if FD a/c was opened on 15th Feb., first interest installment would be paid on 15 May).
The interest is credited to the customers' Savings bank account or sent to them by cheque.
This is a Simple FD.[5] The customer may choose to have the interest reinvested in the FD
account. In this case, the deposit is called the Cumulative FD or compound interest FD. For
such deposits, the interest is paid with the invested amount on maturity of the deposit at the
end of the term.[6]
Although banks can refuse to repay FDs before the expiry of the deposit, they generally don't.
This is known as a premature withdrawal. In such cases, interest is paid at the rate applicable
at the time of withdrawal. For example, a deposit is made for 5 years at 8%, but is withdrawn
after 2 years. If the rate applicable on the date of deposit for 2 years is 5 per cent, the interest
will be paid at 5 per cent. Banks can charge a penalty for premature withdrawal.[5]
Banks issue a separate receipt for every FD because each deposit is treated as a distinct
contract. This receipt is known as the Fixed Deposit Receipt (FDR), that has to be
surrendered to the bank at the time of renewal or encashment.[7]
Many banks offer the facility of automatic renewal of FDs where the customers do give new
instructions for the matured deposit. On the date of maturity, such deposits are renewed for a
similar term as that of the original deposit at the rate prevailing on the date of renewal.
Income tax regulations require that FD maturity proceeds exceeding Rs 20,000 not to be paid
in cash. Repayment of such and larger deposits has to be either by " A/c payee " crossed
cheque in the name of the customer or by credit to the saving bank a/c or current a/c of the
customer.
Nowadays, banks give the facility of Flexi or sweep in FD, where in you can withdraw your
money through ATM, through cheque or through funds transfer from your FD account. In
such case, whatever interest is accrued on the amount you have withdrawn will be credited to
your savings account (the account that has been linked to your FD) and the balance amount
will automatically be converted in your new FD. This system helps you in getting your funds
from your FD account at the times of emergency without wasting your time.

BENEFITS OF FD :
 Customers can avail loans against FDs up to 80 to 90 percent of the value of deposits.
The rate of interest on the loan could be 1 to 2 percent over the rate offered on the
deposit.[8]
 Residents of India can open these accounts for a minimum of 7 days.

 Investing in a fixed deposit earns you a higher interest rate than depositing your money in
a saving account.
Taxability:
Tax is deducted by the banks on FDs if interest paid to a customer at any bank
exceeds Rs. 10,000 in a financial year. This is applicable to both interest payable or
reinvested per customer. This is called Tax deducted at Source and is presently fixed at 10%
of the interest. With CBS banks can tally FD holding of a customer across various branches
and TDS is applied if interest exceeds Rs 10,000. Banks issue Form 16 A every quarter to the
customer, as a receipt for Tax Deducted at Source.[9]
However, tax on interest from fixed deposits is not 10%; it is applicable at the rate of tax slab
of the deposit holder. If any tax on Fixed Deposit interest is due after TDS, the holder is
expected to declare it in Income Tax returns and pay it by himself.
If the total income for a year does not fall within the overall taxable limits, customers can
submit a Form 15 G (below 60 years of age) or Form 15 H (above 60 years of age) to the
bank when starting the FD and at the start of every financial year to avoid TDS.

In certain macroeconomic conditions (particularly during periods of high inflation) a Central

Bank adopts a tight monetary policy, that is, it hikes the interest rates at which it lends to
banks ("repo rates"?). Under such conditions, banks also hike both their lending (i.e. loan) as
well as deposit (FD) rates. Under such conditions of high FD rates, FDs become an attractive
investment avenue as they offer good returns and are almost completely secure with no
risk[citation needed]. These can be checked with the excess rates in the country.

Recurring deposit: Indian Bank offers a recurrent deposit with tenure ranging from 12 to
120 months and the initial deposit of Rs. 25 or in multiples of Rs. 25 up to a maximum of Rs.
1 lakh.

A recurring deposit is a special kind of term deposit offered by banks which help people
with regular incomes to deposit a fixed amount every month into their recurring deposit
account and earn interest at the rate applicable to fixed deposits.[1] It is similar to making
fixed deposits of a certain amount in monthly installments. This deposit matures on a specific
date in the future along with all the deposits made every month. Recurring deposit schemes
allow customers an opportunity to build up their savings through regular monthly deposits of
a fixed sum over a fixed period of time. The minimum period of a recurring deposit is six
months and the maximum is ten years.[2]
The recurring deposit can be funded by standing instructions which are the instructions by the
customer to the bank to withdraw a certain sum of money from his savings/current account
and debit to the recurring deposit account.
When the recurring deposit account is opened, the maturity value is indicated to the customer
assuming that the monthly installments will be paid regularly on due dates. If any installment
is delayed, the interest payable in the account will be reduced and will not be sufficient to
reach the maturity value. Therefore, the difference in interest will be deducted from the
maturity value as a penalty. The rate of penalty will be fixed upfront. Interest is compounded
on quarterly basis in recurring deposits.
One can avail loans against the collateral of a recurring deposit up to 80 to 90% of the deposit
value.[1]
The rate of interest offered is similar to that of fixed deposits.[1]

The formula to calculate the interest is given as under: where I is the interest, n is
time in months and r is rate of interest per annum and P is the principal amount.[3]
The formula to calculate the maturity amount is as follows: Total sum deposited+Interest on

it .

Taxability:-

Tax Deducted at Source ( TDS ) is applicable on recurring deposits. If interest earned on

recurring deposits exceeds Rs. 10,000 a year, TDS at the rate of 10% would be deducted by the
bank. Income tax is to be paid on interest earned from a Recurring Deposit at the rate of tax
slab of the RD holder. Investors with no taxable income will have to submit Form 15G to avoid
TDS on both recurring deposits and fixed deposits.

Banking services

Banking services means each and any of the following bank services provided to any Loan
Party by any Lender or any of its Affiliates

(a) commercial credit cards, stored value cards, and treasury management services (including,
without limitation, controlled disbursement, automated clearinghouse transactions, return
items, overdrafts and interstate depository network services),

(b) interest rate, commodities or foreign exchange derivative and hedging products, including
Swap Agreements; provided that in order for any of the foregoing provided by any Lender or
its Affiliates to be included within the Banking Services by the Administrative Agent such
Lender shall provide to the Administrative Agent written notice of

(A) the existence of such Banking Services,

(B) such Lender’s (or its Affiliate’s) and the Administrative Borrower’s agreement as to the
maximum dollar amount of the applicable Borrower’s obligations arising under such Banking
Services that will be included in an Exposure Reserve under Availability (the “Banking
Services Amount”)

(C) the methodology agreed upon by such Lender (or its Affiliate) and the Administrative
Borrower to determine the Banking Services Amount, and (ii) the applicable Borrower must
be permitted to enter into such arrangement under this Agreement or must not be restricted
from entering into such arrangement under this Agreement. The Administrative Agent shall
send notice to the Lenders of the establishment of any Banking Services. After any of the
foregoing have been established as Banking Services hereunder and as long as no Event of
Default exists, the Banking Services Amount may thereafter be changed by written notice to
the Administrative Agent pursuant to an agreement between the applicable Lender (or its
Affiliate) and the Administrative Borrower, provided that no change in a Banking Services
Amount may cause Availability to be less than zero.

 Cards

Credit cards: Indian Bank offers a wide range of credit

card to its customers to fulfill their needs.
The card offers attractive reward points,
cashback, exclusive discounts, etc

Debit cards: Indian Bank offers various types of debit

cards to fulfill the needs of its customers
across categories such as dining, shopping,
traveling, and many more.

A credit card is a card which allows people to buy items

without cash. When they buy something, a sales clerk
uses it to charge the money needed to their account, so
the person will pay later. They are buying it on credit,
which is the trust that they will pay it back later.

When a customer purchases a product via credit card,

the credit card's issuing bank pays on behalf of the
customer and customer has a certain amount of time to
pay the credit card bill. If a person does not pay within
the time limit (usually a month) they will have to pay
extra money, called interest. Payment using a credit
card is one of the most common methods of electronic
payment. Most of the Credit Cards give you an interest-
free period of 45 to 50 days, depending on the type of card you are using and your billing
cycle.

Credit cards are usually small plastic cards with a

unique number attached to an account. Most
are magnetic stripe cards and many have an EMV chip for use by card readers.

If a person does not pay within the time limit (usually a

[[month]]) they will have to pay extra [[money]], called
[[interest]]. Payment using a credit card is one of the
most common methods of electronic payment. Most of
the Credit Cards give you an interest-free period of 45 to
50 days, depending on the type of card you are using
and your billing cycle.

 BANKING

Balance enquiry:

Indian Bank provides balance enquiry facility using Net Banking, SMS Banking,Mobile
Banking, Passbook, ATM, and Customer Care Number.
Mini statement:
Indian Bank account holders can avail mini statements using Net Banking, SMS Banking,
Mobile Banking, Passbook, ATM, etc

Net banking:
Using Indian Bank Net Banking facility,customers can check their account balance,transfer
funds, request for demand draft, etc

Online banking, also known as internet banking or web banking, is an electronic payment
system that enables customers of a bank or other financial institution to conduct a range
of financial transactions through the financial institution's website. The online banking
system will typically connect to or be part of the core banking system operated by a bank and
is in contrast to branch banking which was the traditional way customers accessed banking
services.
Some banks operate as a "direct bank" (or “virtual bank”), where they rely completely on
internet banking.
Internet banking software provides personal and corporate banking services offering features
such as viewing account balances, obtaining statements, checking recent transactions,
transferring money between accounts and making payments.

Customer care:
Indian Bank customers can contact thecustomer care toll-free number(24x7) for any queries.
questions, complaints, etc.

customer service is the provision of service to customers before, during and after a purchase.
The perception of success of such interactions is dependent on employees "who can adjust
themselves to the personality of the guest".[1] Customer service concerns the priority an
organization assigns to customer service relative to components such as product innovation
and pricing. In this sense, an organization that values good customer service may spend more
money in training employees than the average organization or may proactively interview
customers for feedback.
From the point of view of an overall sales process engineering effort, customer service plays
an important role in an organization's ability to generate income and revenue.[2] From that
perspective, customer service should be included as part of an overall approach to systematic
improvement. One good customer service experience can change the entire perception a
customer holds towards the organization.