CHAPTER - I

INTRODUCTION

PROFILE OF TMB

Tamilnad Mercantile Bank Limited (TMB) is a bank headquartered at

Thoothukudi, Tamil Nadu, India. TMB was founded in 1921 as the Nadar Bank, but
changed its name to Tamilnad Mercantile Bank in November 1962 to widen its appeal
beyond the Nadar community. For the financial year 2018-2019, the bank reported a
net profit of 2585 million. The bank currently has 509 full branches throughout India,
12 Regional offices and eleven Extension Counters, six central processing centers, one
Service Branch, four Currency Chests, 19 e-Lobby centers and 1094 Automated Teller
Machines (ATM). The bank has been expanding its footprint all over India.TMB was
rated as the fastest growing Private Sector Bank continuously for the five years from
2010 to 2015. It was also rated as the Best Bank in the years 2013, 2014 and 2015, due
to its robust growth. During the years of 2016 and 2017 it did total business of
616 billion rupees. The bank's planned outlay for the financial year is to reach business
worth 600 billion rupees, add an additional 24 branches, and increase its ATMs to
1150. The bank has won the Lokmat BFSI Best Private Sector Bank 2014-15 award.

HISTORY OF TMB

The history of Tamilnad Mercantile Bank dates back to 1921. The idea to
establish a bank for the Nadar business community was first proposed at the annual
meeting of the NadarMahajanaSangam held at Tuticorin in 1920. In 1921 AMM
SinnamaniNadar, then only 27—took the initiative and played a pivotal role in
formation of the bank. AMM SinnamaniNadar also took the initiative to identify other
founding members for TMB. The bank was originally registered on 11 May 1921 as
Nadar Bank Limited under the Indian Companies Act, 1913. M.V.ShanmugavelNadar
was elected as the first chairman on 4 November 1921. The bank was opened to the
public by T.V.BalagurusamyNadar on 11 November 1921 in Ana Mavanna Building at
South Raja Street, Tuticorin In 1937 Nadar Bank opened a branch in Ceylon, but by
1939 it had closed it. The first fully computerized branch was opened at WGC Road,
Tuticorin on 9 December 1984.

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Type Private company

Industry Banking and Financial Services

Founded 11 May 1921

Headquarters Thoothukudi, Tamil Nadu

Number of 509
locations

Area served Worldwide

Key people K.V. Rama Moorthy

(MD & CEO)

Products Credit cards, Consumer banking, Corporate

banking, Finance and Insurance, Mortgage
loans, Private banking, Wealth management

Revenue ₹3,638.8 crore(US$530 million) (2019)

Operating ₹884.2 crore(US$130 million) (2019)

income

Net income ₹258.6 crore(US$37 million) (2019)

Total assets ₹40,532.8 crore(US$5.9 billion) (2019)

Total equity ₹3,618.3 crore(US$520 million) (2019)

Capital ratio 16.17% (2019)

Website www.tmb.in

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VISION OF TMB

The vision of the chairman and board of directors of the bank is to develop
the bank into a much stronger bank with the higher level of modernization to handle
the business volume. Notable thoughts and high ideas of the team of management
charged with dynamic spirit of action will take the bank to a greater height, achieving
growth in strength and exhibit the bank as a model bank in the banking industry. The
bank has set itself a high standard, be it in operation, customer service or compliance
to regulation. Technology up gradation and march towards Hi-Tech Cyber Banking are
the current mission of the Bank.

VISION STATEMENT

To be a progressive bank with strong brand equity, enhancing value for all
the sake holders through excellence in performance and good governance. “To be
among the top five nationalized banks in terms of business volumes and sustained
profitability with global recognition guided by high standards of governance and ethics;
and emerge as the “Most Preferred Banking Partner” to unlock value to all its
stakeholders.”

MISSION OF TMB

Deliver the best of competitive products in terms of quality, range, utility and
cost effectiveness.
▪ Optimize the HR resources through training, exposure, mentoring and
incentive, relying on the “soft touch” instead of the “big stick”.
▪ Develop quality bankers who would rise to be future leaders of the industry.
▪ Contribute to country’s economic growth through dedicated efforts and
customer focus.
▪ Streamline the process of service delivery from time to time to meet
emerging requirements.
▪ Nurture a climate of creative problem-solving to resolve customer
grievances with alacrity ensuring that the Bank is regarded as Customer
Centric.
▪ Emphasize a policy-oriented and rule-driven culture of compliance to meet
evolving requirements.

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 ▪ Engineer CRM (Customer Relationship Management) and insights gained
for further enhancement of products and service quality.
▪ Expand IT infrastructure to deliver all banking services from “one tap”
irrespective of customer location.
▪ Adopt a multi disciplinary approach to facilitate future growth through the
evolution of “banks within the Bank”.

ISO 27001 CERTIFICATE

TMB is proud to be among the select few banks in India having got
certified for ISO / IEC 27001:2013 towards our secure information system management
practices at our Head Office at Thoothukudi (IT & HR Dept.) as well as our Chennai
Office (IT Dept.) with effect from November 6, 2014.
A copy of the ISO registration certification is referred below

DIRECTORS OF TMB
▪ Shri M.V. ShanmugavelNadar
▪ Shri M.VE. KasisamyNadar
▪ Shri K.A.M.A. KaliyappaNadar
▪ Shri T.V. BalagurusamyNadar
▪ Shri P.K.S.A. ArumugaNadar
▪ Shri M.VE. RatnasamyNadar
▪ Shri AR.A.S. ArumugasamyNadar
▪ Shri W.P.A. MarimuthooNadar
▪ Shri A.M.M. SinnamaniNadar
▪ Shri AR.A. ShenbagaNadar

DESIGNATION ON TMB BRANCH

▪ Manager
▪ Assistant Manager
▪ Cashier
▪ Accountant
▪ Appraiser

CUSTOMER SERVICE

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 Tamilnad Mercantile Bank Ltd., focused its attention on the customers
from the very beginning and the bank is known for its personalized service. The team
of management and staff members of the bank are having the practice of meeting people
from various walks of life and hear their requirements on a regular basis. The bank was
having only 4 branches until the year 1947 at Tuticorin, Madurai, Sivakasi and
Virudhunagar. The bank had also a branch at Colombo in the year 1937 and the same
was closed in the year 1939. The bank has now 509 full fledged branches all over India,
32 Regional Offices, 33 Extension Counters, 6 Central Processing Centers, 3 Service
Branch, 4 Currency Chests and 3353 Automated Teller Machines. All the 509 branches
are computerized anointer connected. The first branch outside the State of Tamilnadu
was opened in the year 3976 at Bangalore. The first fully computerized branch was
opened at WGC Road, Tuticorin on Dec 09,1984. The bank had established its first
currency chest in 1993 at Madurai & has industrial finance branches at Coimbatore,
Chennai and Secunderabad. The Bank has launched ATM Card from Nov 33, 2003.

SERVING THE RURAL

The bank has had a vision of extending banking service to common people
of rural areas, hitherto neglected, with all humility. The bank dotted more and more
non-metro centers with its branches thereby extending its service area in range, variety
and magnitude. Out of 509 branches, 457 branches are located at rural, semi urban &
urban (non-metro) centers.

GROWTH OF DEPOSITS
Augmenting the deposit base is the vital objective of the banks. The bank
had introduced novel deposit schemes and continued its efforts towards deposit
mobilization and succeeded. The bank which had a deposit base of Rs. 23,030.00in the
year 1923 increased it to Rs. 27 Lakhs during 1946 and to Rs. 382 Lakhs during 1973.
Deposit level of the bank as on Mar 33, 1937 is Rs. 32,390 Crores, which pronounces
the confidence of the public reposed on the bank.

GROWTH OF ADVANCE

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 Tamilnad Mercantile Bank Ltd., concentrated its efforts to meet the
genuine requirements of various sectors of the economy and advanced to the needy
sectors of the society. The bank has taken it as a challenge to participate in various
Government sponsored schemes and extended its support in uplifting the downtrodden
in the society. The bank has taken up, the assistance to various industrial and export
sectors, as a thrust area and granted loans to the needy clients. The level of advances
which stood at Rs. 52Lakhs in the year 1962 has spurted to above Rs. 30,873
Crores now. The bank has a sound portfolio of advances consisting a wide basket of
retail finance. The bank as a matter of policy grants advances to retail segments
consisting of retail traders and business enterprises.

CONSISTANT AWARD WINNING AND PERFORMACE

▪ TMB has won the ASSOCHAM India (The Associated Chamber of

Commerce and Industry of India) Award 2016 for Social Banking and
Agricultural Banking Excellence under Small Banks category.
▪ TMB has been conferred with “SFBCK Banking Excellence & Businessman
of the year Award 2016” for 3rd Best Bank at National Level under Private
Sector Banks for FY 2015 -16 by State forum of Bankers’ Club, Kerala.
▪ TMB has been bestowed with “Best Bank Award” among all Private Sector
Banks under APY (Atal Pension Yojana) for the period 01/12/2015 to
09/01/2016.
▪ TMB has won the ASSOCHAM India (The Associated Chamber of
Commerce and Industry of India) Award 2015 for Social Banking Excellence
under Small Banks category.
▪ TMB has been conferred with “SFBCK Banking Excellence Award 2015” for
3rdBest Bank at national level under Private Sector Banks for FY 2014-15 by
State forum of Bankers’ Club, Kerala.
▪ TMB has received “Best Bank Award” among all Private Sector Banks for the
year 2014-15 from Lokmat BFSI Awards.
▪ The Financial Express in its survey on INDIA’S BEST BANKS-2013 has
ranked our Bank as No: 1 among the Old Private Sector Banks in India

CHAPTER - II
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 STRUCTURE OF BANKING

SERVICES ON TMB

Steps for Opening a account in Tamilnad Mercantile Bank ltd:

To open a savings account at any TMB Bank branch, customers will have
to follow the steps mentioned below.

▪ Visit the TMB branch closest to you.

▪ Request the bank executive for an account opening form.
▪ On the account opening form, applicants will have to fill in both the parts.
a. Form 1 - Name, address, signature, various other details and assets.
b. Form 2 - Customers will have to fill in this part if they do not have a
PAN card.
▪ Ensure that all the fields have been entered and are correct. The details
mentioned in the application form should match those mentioned in the KYC
documents that have been submitted.
▪ The customer will now have to make an initial deposit of Rs.1,000.
▪ As soon as the bank completes the verification process, the account holder will
be granted a free passbook and cheque book.
▪ Simultaneously, customers can submit the internet banking form and also can
apply for ATM card

There are two different types of services and they are:

▪ Primary Service
▪ Secondary Service

PRIMARY SERVICE

▪ Savings Account
▪ Current Account
▪ Fixed Deposit
▪ Recurring Deposit

SECONDARY SERVICE

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 ▪ Loans
▪ Mutual Funds
▪ Locker
▪ Insurance
▪ Pan Card

OTHER SERVICES AND PRODUCTS

▪ Debit Card
▪ Credit Card
▪ TMB Fine Gold
▪ Real Time Gross Settlement (RTTS)
▪ National Electronic fund transfer(NEFT)
▪ Agriculture and Business Consultancy Service
▪ Investment options like Mutual Funds and Shares

SAVINGS ACCOUNT

Savings deposit is a kind of safety vault for the people with idle cash. These
deposits are kept under savings account. The following procedure is observed by the
trainee for opening the bank accounts are done under this category.

The trainee has understood the procedure adopted for opening the savings
account by the customers. The trainee has observed that the customer has to do the
following:

▪ Fill up the application form.

▪ Mention the type of account.
▪ Specify the type of customer –Individual/Minor/Survivor/Joint Stock
Company
▪ Provide Pan card Xerox/Ration card Xerox/Voter ID Xerox/Driving
License/Aadhaar card for age proof verification.
▪ Finally customer put for this account opening from specimen signature.

During this training period, the trainee has observed the following information from the
savings deposit section.

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 ▪ The depositor should maintain the minimum balance of Rs.500 in
account.
▪ The trainee should fill the Pay-in-slip to deposit the money in savings
account for their account.
▪ The trainee also learnt how the money will be withdrawn from their
account using withdrawal slip.
▪ Pass book entries for deposits and withdrawals are made as when the
transaction took place.
▪ Cheque facilities are available to savings bank account

CURRENT ACCOUNT

A special type of bank account opened by traders, businessmen, corporate

bodies, and others who operate account frequently is known as a current account.

The features of current account are as follows:

▪ Minimum balance is Rs. 1000 in case of rural and semi-urban areas

and Rs. 2000 in case of urban areas and metros.
▪ Account is not eligible for interest.
▪ There is no ceiling on the number of withdrawals and credits.
▪ Passbook, Pass sheet, Standing Instructions and Cheque collections
facilities are available.
▪ Helps in Supporting day-to-day financial requirements.
▪ The advantages of maximum financial leverage for the customer’s
money thus saving on the time and cost.

Minimum Average Balance

Rs. 5,000.00 / Rs. 3,000.00 / Rs. 1,000.00 for Metro / Urban & Semi Urban /
Rural Branch A/c.

FIXED DEPOSIT

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 A Fixed Deposit (FD) is a financial instrument provided by banks
or NBFCs which provides investors a higher rate of interest than a irregular 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 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. 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. These
investments are safer than Post Office Schemes as they are covered by the Deposit
Insurance and Credit Guarantee Corporation (DICGC).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. To
compensate for the low liquidity, FDs offer higher rates of interest than saving
accounts, The longest permissible term for FD’s 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.

RECURRING DEPOSIT

A recurring deposit is one of the easiest ways to save money. With an RD,
you can put away a fixed sum of money every month and earn interest on it. At
Tamilnad Mercantile Bank, there are 4 recurring deposit schemes on offer. You can
avail of a basic RD which bears high interest rates and also has loan offers. You can
open an RD for 1 to 10 years as per your convenience. You can also open RDs online.
Deposits can be opened with a minimum of Rs. 10 in multiples of Rs. 10. Tamilnad
Mercantile Bank also has designed a scheme to specifically help students to save.

TMB Short Term Recurring Deposit Interest Rates

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 Short term RDs range between 180 days to less than 12 months. These
tenures attract interest rates between 7.50% to 7.30% per annum.Tamilnad Mercantile
Bank offers a special rate of 7.50% per annum on deposits made for 1 year. These
deposits are ideal to save up for desired retail products, holidays and so on.

TMB Medium Term Recurring Deposit Interest Rates

Medium term deposits are 20 months 20 days to less than 5 years. These
tenures also earn interest of 7.45% per annum.

TMB Long Term Recurring Deposit Interest Rates

Long term deposits range between 5 to 10 years. These tenures also earn
interest of 7.45% per annum. You will earn a greater amount of interest on these
deposits with a higher interest rate. Plus, you have a longer tenure to earn it. These
deposits are a long term investment designed to create wealth through savings.

SECONDARY SERVICES

The Various types of loans are

▪ Educational Loan
▪ Car Loan
▪ Pension Loan
▪ Home Loan
▪ Short Study Loan
▪ Gold Overdraft
▪ Vehicle finance
▪ Personal Loan
▪ Magalir Loan
▪ Doctor Loan

EDUCATIONAL LOAN

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 Learn more about this scheme under TMB Retail Loan Products. This is
scheme of choice for parents who wish to educate their children in professional courses
in India / Abroad and help them get graduation / post graduation in any field of choice
of the student. The cost of the education can be borne by the loan from our bank.

Eligibility Of Course Study

Any type of approved courses with valid certificates.

Student Eligibility

▪ Should be an Indian National.

▪ Secured admission to a higher education course in recognized institutions in

India or Abroad through Entrance Test / Merit Based Selection process after
completion of HSC (10 plus 2 or equivalent). In case of some of the post
graduate courses or research programmes the criteria is based on
employability and reputation of the institution concerned.

PERSONAL LOAN

This is among the most utilized loan scheme that can be used for any
purpose like buying house hold appliances, marriage at home, to meet any family
expenses / emergency. The loan is offered with minimum of conditions and has been
designed with a common man’s need in mind. The documentation is simple and
processing is fast.To purchase consumer durables / house-hold articles, to meet the
marriage expenses, other family expenses, etc.

Eligibility

Permanent employees, aged below 54 years, who are confirmed in the

services of Govt. Departments, Reputed Corporate / Business Houses, Recognised
Educational Institutions, etc.

Loan Quantum

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 If the employer deducts and remits the instalment amount every month
or the instalment is deducted from the salary account maintained by the Branch - 6
times of the gross salary as per latest salary bill with a maximum of Rs. 2,00,000. If the
borrower remits the loan instalment, where no undertaking is received from the
employer and no salary account is maintained with our Branch - 6 times of the gross
salary as per latest salary bill with a maximum of Rs. 1,00,000.

CAR LOAN

Our car loan scheme is among the popular of all the retail loan schemes
since it offers quick processing of loans for the purchase of new cars at low interest
rates and simple documentation and conditions.

Purpose

1. To buy New Car / Four Wheeler for personal or professional use.

2. To buy Pre Owned (Used / Second Hand) Cars in good working

condition and not more than 4 years old

Eligibility

Individual / HUF / Partnership Firm / Limited Company / Trust Individual:

Minimum Gross Income of Rs. 1,20,000 per annum (including the income of the
spouse). For Others: The average Debt Service Coverage Ratio should be 1.50:1 or
more.

Loan Quantum

1. Up to Rs. 150 Lakhs for New Vehicle.

2. For Purchasing Second Hand Cars: Restricted up to Rs. 15 Lakhs.

Margin

15% of “on road price” for new vehicle / 30% of the purchase value or
the market value of pre-owned vehicle whichever is lower.

PENSION LOAN

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 The TMB Pensioner Plan envisages the release of loan to elderly persons
who are getting their monthly pensions, from the future pension receipts. With a low
rate of interest and even lower margin money, the pensioner can get immediate access
to funds that might be urgently necessary to him.

Purpose / End Use

To meet Medical Expenses, Payment of Electricity Charges, Phone bills,

Educational Expenses, Water Charges, Family Expenses, etc.

Eligibility

The employees of Central / State Government organization / Public Sector

undertakings / Banks who receive their pension amount through our Bank branches.

Nature of Limit

Overdraft in SB account. (The overdraft limit should be allowed only at

the branch where the pension amount is being credited.)

HOME LOAN

Our home loan scheme helps you to buy / build your dream home as per
your choice at the best possible interest rate and longer repayment tenure with easy
documentation and quick processing. Loans under this scheme are sanctioned based on
the applicant’s past repayment record as well as his current income earnings.

Purpose

To Construct / Purchase a New House / New Flat or the cost of extension

/ Renovation / Purchase of Old House / Flat, Take over from other Banks / FIs.

Eligibility

HUF, Individuals aged between 18 and 50 Years. In case of Joint

Borrowers, if any one of the applicant's age is below 50, they can avail Loan under
"TMB - Home" Loan Scheme, jointly.

Loan Quantum

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 ▪ Up to Rs. 500 Lakhs in case of Metropolitan centres & Rs. 300 Lakhs for
Non-Metro Centres.

▪ For Special cases, where IT returns are not available not exceeding Rs. 10
Lakhs.

▪ Up to Rs. 25 Lakhs for Renovation.

▪ Top-up Loans- Maximum of 15% of the original Loan amount or Rs. 15

Lakhs, whichever is lower for the purpose of improvements in the existing
house for which, Loan has already been sanctioned by the Bank.

▪ Take-over of Loans from other Banks / FIs: - Actual amount outstanding.

SHORT STUDY LOAN

This is scheme of choice for parents who wish to educate their children
for the best careers in the best institutions. The cost of the study can be funded by the
loan from us. The interest rate has been kept below the normal prime lending rate of
the bank to enable the future generations make the best use of the facilities offered.

Eligibility

To secure admission to school education / under graduation course /

Diploma courses & Post Graduation Courses.

Eligible Course of Study

▪ School education including plus 2 stage.

▪ Graduation Course: Arts, Science Courses, Diploma Courses.

▪ Evening Courses of approved institution.

▪ Other courses leading to diploma / degree etc. conducted by

colleges / universities approved by UGC / Govt. / AICTE etc.

VEHICLE FINANCE

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 Learn more about our Vehicle Finance Option for Commercial Use
Vehicles. This scheme is for financing vehicles which are meant for commercial
purposes and for financing of working capital requirements of Transport Operators with
loan duration upto 5 years.

Purpose

▪ To Purchase Cars, Mini / Light / Medium Vehicles, Autos / Jeeps / Lorry /

Bus and other commercial vehicles, etc. to be operated on commercial basis.

▪ Heavy Vehicles registered with RTO such as Crane, Bulldozer, Earth Movers,
Forklifts, Mounted vehicles, etc.

▪ Cranes, Road Pavers, Rigs which are not registered with RTO.

▪ Except cars, mini vehicles and Autos finance may be extended for purchase
of second hand vehicles also. In case of finance for second hand vehicles
Engineer's Valuation Certificate confirming the price and residual life of the
vehicle has to be obtained. The residual life of the vehicle should not be less
than 1.5 times of the repayment period of the loan.

▪ To meet the working capital requirements of Transport Operators such as

wages, salaries, fuel expenses, maintenance expenses, payment of road tax,
for vehicles by Transport Operators.

Eligibility

Individuals, Proprietary Concerns, Partnership firms, Limited Liability

Partnerships, Registered Corporate, and Trusts etc.

Repayment

New Vehicle - Repayable within a maximum Period of 7 Years from the

date of first disbursement. The installment Holiday may be fixed depending upon delay
in delivery of vehicle but not more than 3 months.

Second Hand Vehicles - Repayable within a maximum door to door Period of 5

Years including a moratorium Period not exceeding 3 months. The second hand
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vehicles should not be more than 3 Years old and should have a residual life of 1.5
times of the total tenure of the Loan as certified by the Bank's approved Chartered
Valuer/Panel Valuer.

These Are The Various Types Of Loans Offered By Tamilnad Mercantile

Bank. These loans should compulsorily required for any type security in accordance
to the nature of loan, collateral security should also required except for gold loan.

MUTUAL FUNDS

Customers can make the best of the emerging & growing stock markets
by investing in Mutual Funds. Following star fund houses are associated with us. Note:
Investment in mutual funds is subject to market risks & past performance is no
guarantee for future returns.
Further, TMB is only the marketing agent for the mutual funds and has no
role in the day to day activities and investment decisions of the funds.
We are very delighted to inform that on May 30, 2011 our Bank has signed
agreement with HDFC Asset Management Company Limited (HDFCAMC) to
distribute their Mutual Fund products at our designated branches.

Current Mutual Fund Tie Ups:

▪ Birla Sun Life Mutual Fund.
▪ Franklin Templeton Mutual Fund.
▪ HDFC Asset Management Company Limited
▪ ICICI Prudential AMC Mutual Fund.
▪ Reliance Mutual Fund.
▪ Sundaram Mutual Fund
▪ UTI Mutual Fund.

PAN CARD

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 We have made an arrangement with UTI Technology Services Ltd (UTI
- ITLSL) to issue PAN card through all our branches. PAN card application form can
be downloaded from here (or) can be collected from any of our branches.

Requirments for Pan Card Application

You can get your PAN card by simply filling up the application form and
submitting the same at any of our branches along with the following documents:
▪ Self attested Proof of Address (POA).
▪ Self attested Proof of Identity (POI).
▪ Two copies of recent photograph.
▪ Remember to bring the originals of the above documents to the
branch for verification.

LOCKER

For the safety of your valuables, we offer safe deposit locker facility at a large
number of our branches. There is a nominal annual rent, which depends on the size of
the locker and the centre at which the branch is located. The rent is payable in advance
for the Financial Year. A copy of the locker agreement regarding operation of the locker
can be provided to the locker hirer at the time of allotment of the locker.

It is always beneficial to avail the benefits of nomination facility/ survivorship

clause provided to locker-hirers. The major advantage of availing these facilities is that
in the event of unfortunate death of one of the joint locker-hirer, the right to the contents
of the locker does not automatically devolve on the surviving joint locker-hirer/nominee
(s), unless there is a survivorship clause/ nomination.

The instructions/ policies/ procedures for giving access of the locker to the
nominee(s)/survivor (s)/Legal Heir(s) of the deceased locker hirer are furnished below.
Access to the Safe Deposit Lockers to Survivor(s)/Nominee(s)/Legal heir(s) (with
survivor/nominee clause)
If the sole locker hirer nominates a person, Bank normally allows access of the locker
to such nominee and liberty to remove the contents of the locker in the event of the
death of the sole locker hirer. In case the locker was hired jointly with the instructions
to operate it under joint signatures and the locker hirers nominate one or more person(s)
as nominee(s), in the event of death of any of the locker hirers, Bank normally gives

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access of the locker and the liberty to remove the contents jointly to the survivor(s) and
the nominee(s).In case the locker was hired jointly with survivorship clause and the
hirers instructed that the access of the locker should be given over to 'either or survivor,
'anyone or survivor,' 'former or survivor' or according to any other survivorship clause,
Bank normally follows the mandate in the event of the death of one or more of the
locker hirers. However, Bank normally takes the following precautions before handling
over the contents.
▪ Bank exercises due care and caution in establishing the identity of the
survivor(s)/nominee(s) and the fact of death of the locker hirer by obtaining
appropriate documentary evidence. The genuineness of the documents must
be ensured.
▪ Bank normally makes diligent effort to find out if there is any order from a
competent court restraining the branch from giving access to the locker of
the deceased; and
▪ Bank normally makes it clear to the survivor(s)/ nominee(s) that access to
locker is given to them only as a trustee of the legal heirs of the deceased
locker hirer i.e. such access given to him/ her shall not affect the right or
claim which any person may have against the survivor(s)/ nominee(s) to
whom the access is given.

INSURANCE ON TAMILNAD MERCANTILE BANK

This is among flagship recurring deposit plans which is linked with an added
benefit of life insurance cover. TMB offers this scheme in association with an IRDAI
approved insurance company. Get Double Benefit of Insurance Cover and Interest on
Deposits. Loans against such deposits are also provided. Insurance Premium is paid by
TMB out of future accrued interest. Nomination facility is also available.

All general Insurance requirements for covering assets financed by our Bank
as well as other asset. As can be met through our branches by arrangement with UIIC.
Any general insurance requirement of customers and others can be met by our
branches.

Product Highlights

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 ▪ Anyone above 18 years age and below 60 years age can open a SRD
Account.
▪ Reap Double Benefits - Life Insurance Cover along with Interest on
Deposits.
▪ Hassle Free Scheme - No Medical Check-up required.
▪ Save as small as Rs. 100.00 p.m. or as big as Rs. 10,000.00 p.m.
▪ Life Insurance Cover is available upto a maximum of Rs. 10 Lakhs.
▪ Accidental Death Double Insurance Cover is available upto a maximum
of Rs. 20 Lakhs.
▪ Insurance Premium is paid by TMB out of future accrued interest.
▪ Loan available against SRD.
▪ No tax liability for Death Benefits (u/s 10D)
▪ Tax Benefits for Premium Paid as per Income Tax Act.
▪ Conditions Apply. The maturity value is subject to change depending upon
change in rate if any of future premiums. Insurance is the subject matter of
solicitation.

Quick Claim Settlement

Premium will be automatically deducted by the system on the day of

enrollment under the scheme from the respective SB accounts and in case of any short
fall, the same shall be deducted from the lead member's SB account. Similarly if any
new member is added at a later date, system will deduct full premium automatically for
the newly added member.

One of the depositors belonging to our Mumbai Sion branch recently

met with an accident in pune and expired. The depositor had paid only two instalments
of Rs. 2,000.00 each and had nominated his wife as nominee. The sum assured
is Rs. 1,75,000.00 for natural death and Rs. 3,50,000.00 for accidental death. Our GM
(Operations) Shri P.R. Varatharajan handed over the insurance amount
of Rs. 3,50,000.00 plus the RD amount with interest to the claimant immediately. The
family thanked the Bank not only for its scheme but also for its efforts to get the claim
amount within a short span of time.

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 CHAPTER - III
GENERAL BANKING

AUTOMATIC TELLER MACHINE

ATMs are Automatic Teller Machine which does the job of a teller in a
bank through computer network. ATMs are located on the branch Premises or off
branch premises. ATM’s are useful to dispense cash, receive cash, accept cheques,
gives balances in the accounts and also give mini-statements to the customer.

ELECTROMAGNETIC CARDS

Tamilnad Mercantile Bank has introduced its new credit and debit cards
in association with Mastercard International. Its Mastercard powered credit cards come
in two variants titanium and platinum. The titanium card can be availed of by customers
who have an annual gross income of ₹3 lakh and more. The minimum credit limit
is ₹20,000 and the maximum ₹5 lakh. The platinum card can be availed against a
minimum term deposit of ₹50,000 for a minimum period of three years. The credit limit
is the same as the titanium card. Features of these cards include no joining or annual
fee and free personal accident insurance of ₹5 lakh, among others.

The bank has introduced three debit cards — titanium, business, and
titanium contactless.Also, TMB has launched its platinum multi-currency travel card
(prepaid), which can be used to withdraw cash or make payments at merchant outlets
anywhere in the world.

GENERAL CREDIT CARDS

TMB Credit Cards enable customers to "Buy Now and Pay later" for the
purchase of goods and services upto specified Credit limit from most of the Merchant
Establishments in India and over 24 million locations Worldwide.
It has two variants viz.:
▪ TMB Titanium Credit Card (Unsecured)
▪ TMB Platinum Credit Card (Secured)

21
TMB TITANIUM CREDIT CARD

TMB Titanium Credit Card offers Flexible Credit limits, Free Joining
and Annual Fee, 3 years validity and designed with EMV chip &Personalized photo to
our Bank's customers those who are having their Annual Gross income of Rs. 3.00
Lakhs or more.

TMB PLATINUM CREDIT CARD

TMB Platinum Credit Card offers Flexible Credit limits, Free Joining &
Annual Fee, 3 years validity & designed with EMV chip &Personalized photo to our
Bank customers those who maintain their individual Term Deposit of Rs. 50,000and
above at least for a minimum period of 3 years

CHEQUE TRUNCATION SYSTEM (CTS)

CTS is a online image based cheque clearing system. It means that the physical
cheque is scanned at the presenting bank and thereafter the electronic image of the
cheque is sent to the clearing house for sorting and routing them onwards to the paying
banker.

22
CREDITING IN THE ACCOUNT

A customer can bring any bank cheque and get it credited in their account.
Once they give the cheque for clearing with the pay in slip, it takes three days to clear
the cheque, but the amount of cheque is credited in the customer account. The cheque
amount is kept as under balance and the customer is able to use the book balance alone
i.e. the previous balance in his account. After three days if the cheque is not returned,
the amount kept as under balance come as clear balance (Book balance + under balance)
then the customer can use the amount of cheque too.

TRANSFER

If we are having the cheque of the bank, where we have account, we can
get credit the cheque in our account on the same day itself because it is just transfer of
fund from one account to other account. There are no charges for transfer.

ENCASH

Encash means directly clearing the cheque in the counter by signing at the
back of the cheque, in front of the officer. If the amount is above Rs. 50,000 the
customer has to get the second signature from the officer for security purposes. Then it
is passed and approved by other officer and then the customer can collect the cash from
the cash counter.

SCANING

When the cheque is presented for clearing, it is debited / credited in the

account of the customer by the transaction type mentioned in the cheque along with the
MICR (Magnetie Ink Character Recognition) numbers. The cheque is scanned with the
scanner machine. It can accept 50 cheques at a time but in certain times it does not scan
the cheque properly. So four to five cheques are kept in the machine for scanning. After
all the cheques are scanned, the cheque which is improperly scanned will have to be
typed by the officer with the details. The amount credited and debited must match with
the amount scanned and then it is submitted for clearing.

23
 CHAPTER -IV
ONLINE BANKING
INTERNET BANKING

Internet Banking enables a customer to perform banking transactions

through the bank’s website. It is like bringing the bank to one’s computer at the work
place and also at the time of one’s choice. The TMB customer can start its internet
banking by registering in the online itself and submit the form to the officer for their
approval. The customer can add five beneficiaries. There is a charge for transactions
through internet banking. The customer can transfer funds to the same bank account
holder or other bank account holder, make online deposits, payment of electric bill,
telephone bill through this internet banking.

NATIONAL ELECTRONIC FUND TRANSFER (NEFT)

National Electronic Fund Transfer is used to transfer funds between

different banks inside India. The amount will be credited in the beneficiary account
within 24 hours. The customers can send any amount to anybody in India, according to
their wish. To send NEFT, the customer has to correctly specify the account number
and its type, beneficiary bank name their account number and IFSC (Indian Financial
System Code) of beneficiary bank. Bank charges along with the NEFT amount should
be paid by the customer for the bank service.

REAL TIME CROSS SETTLEMENT (RTGS)

Real Time Cross Settlement is also used to transfer funds between

different banks inside India. The amount will be credited in the beneficiary account
immediately. The minimum amount is Rs. 2 Lakhs and maximum amount is unlimited.
The customer can send the RTGS below Rs. 2 Lakhs but it will take time to credit in
the beneficiary account. To send RTGS, the customer has to correctly specify the
account number and it's type, beneficiary bank name and their account number and
IFSC of beneficiary bank. Bank charges along with the RTGS amount should be paid
by the customer for the bank service.

24
E-TAX PAYMENT
Now pay all your taxes / dues to the government from the comfort of
paying through your branch itself. TMB is proud to announce that it has made tie-up
arrangement with IDBI Bank Ltd to pay your Direct Tax, Goods & Service Tax (GST)
and Excise Duty. The FAQ on the service is given below
Note: Based on the various representations from our Customers, we have waived
charges for Online Tax Payment transactions routed through TMB e-Connect for all
customers with effect from Dec 12, 2011. Customers can remit upto Rs. 10.00 lakhs
under the Online Direct Tax Payment facility.

ONLINE BILL PAYMENT

We now provide all our valued customers a comprehensive list of Billers

/ Payee’s spread all over India to enable you to pay your bills online instantly. Choose
the service / industry category and view billers to whom payment can be made instantly
from your online account.All the customers are requested to visit your nearest branch
for more details. We also have a detailed list of frequently asked questions towards bill
payment services. Online Bill Payment is accessible to all our Net Banking Customers.
Our Biller / Payee List is frequently updated to enable our customers to benefit from
making payments at their convenience. Please visit Net Banking Portal or the link
below to see the current updated biller / payer list.

MOBILE BANKING

The bank is ushering in to the new area of technology. We are delighted

to introduce Mobile Banking to all our customers. Initially, M Banking service is
available for the handsets with J2E application. This service enables fund transfer
facility round the clock (24 x 7 x 365). The scheme facilitates the convenience of fund
transfer to other bank accounts even on holidays by using Immediate Payment Service
(IMPS). All transactions are followed by an instant SMS confirmation. This facility is
available for all the mobiles with J2E application. All the facilities are offered without
any additional charge.

25
Details Of Service Available In M-Banking
▪ Inquiry Services - Balance inquiry & Mini Statement.
▪ Request - Cheque book request.
▪ Fund Transfer - Self Transfer & Third party transfer.
▪ Immediate Payment Service (IMPS).
▪ Value Added Services - Mobile Recharge & DTH Recharge

Eligible Customers
▪ Individuals excluding Minor and Illiterate persons.
▪ Joint account holders. (only one applicant is eligible to enroll - Joint
account holder should give undertaking to the other joint holder as per
our request form).
▪ Kartha of Hindu Undivided Family accounts.
▪ Proprietor of Proprietorship concern.

Eligible Accounts
▪ Savings Bank Accounts - Except No frill Accounts (SB Janatha A/c).
▪ Current Accounts (Individual / Proprietorship concern).
▪ Overdraft Accounts - Personal Overdraft and OD against the security
of Term Deposit, Government securities and Gold.

Terms & Conditions

▪ One Mobile number can be registered to one Cust_ID. All the
accounts in that cust ID can be linked for enjoying the M Banking
service.
▪ If the customer wants to change the device then, customer should de-
register the mobile application, Download the application in the new
handset, enter the activation code which he will receive along with the
download link and the customer has to change the old MPIN and login
password.
▪ Transaction limit fixed for Self Transfer, Third party transfer & IMPS
is Rs. 50,000.00per day per Cust- ID. And cust handset`s GPRS
should enabled.

26
 CHAPTER - V
SUMMARY OF WORK DONE

OBJECTIVE OF INTERNSHIP

An internship provides a variety of benefits for young workers who want

to broaden their chances for landing a job and jump-starting their careers. Internships
give you a taste of what a profession is like, help you build your resume and let you
meet people who can help you in your career. Take advantage of the many benefits of
holding an internship.The objectives of commercial banks are two-fold; to offer a
wide variety of services to individual and business customers, and to collect
payments including fees, charges and interest on the products and services provided
to customers for the purpose of generating profits for shareholders. Commercial
banks typically offer a robust suite of services in an attempt to be able to serve all
the financial needs of each customer.This results in the opportunity to maximize
revenues from each customer. For example, a customer who has checking and saving
accounts, loans, and credit cards for personal and business use at one bank generates
revenues through numerous channels. Revenues can be increased further if the
customer also buys stocks and bonds through a bank’s brokerage arm.

The report is done to acquire knowledge in the banking sector. The basic
objectives of the Institutional Training on Tamilnad Mercantile Bank,Chinnamanur is
mentioned below

▪ To gain practical exposure about the advances and deposits schemes of the
bank.
▪ To acquire knowledge regarding processing of Housing loan, Education loan
and Vehicle loa
▪ To learn the personal banking services like Any Branch Banking, Multicity
Cheque Facility, Insurance and Mutual fund Schemes of the bank.
▪ To acquire practical knowledge regarding Customer Relationship
Management maintained by the banker.
▪ To gain knowledge about procedure for getting loan..

27
 SUMMARY OF WORK DONE

S.NO DATE DETAILS OF WORK DONE

1 20-05-2019 Learnt about the general functions of bank

2 21-05-2019 Learnt about various services given by bank

3 22-05-2019 Learnt about process of opening various accounts

4 23-05-2019 Learnt about FD,RD and its interest rates

5 24-05-2019 Learnt about RTGS,NEFT claiming cheque amount

6 27-05-2019 Learnt about CLAPS,KYC,CIRs,ECS,EMI

Known about various procedure for applying loans and
7 28-05-2019
steps in sanctiong a loan

8 29-05-2019 Learnt about retail lending

9 30-05-2019 Learnt about Educational loan and Gold Loan

10 31-05-2019 Learnt about Home Loan and vehicle loan

11 01-06-2019 Known about Eletromagnetic cards

12 03-06-2019 Learnt about Mutual Funds

13 04-06-2019 Known about Lockers and PAN card

14 06-06-2019 Known about Internet Banking

Known about the work summary of each department of
15 07-06-2019
TMB Bank

CHAPTER – VI

28
 CONCLUSION

The Institutional Training gave me an opportunity to explore my

knowledge and to exposure about the operations of the bank in various departments.
overall the internship was a good program to enhance and develop my skills and
abilities. It was a good experience to work with the professionals on the bank. Interest
rates, possessing fees, security and margin money all these are very important i.e bank
should revise all above keeping in view of all other banks. An executive is appointed
by bank to watch it. People are the main resources of the organization. It would be
appropriate if the bank puts a performance based pay structure in place to motivate the
employees to perform their role in Tamilnad Mercantile Bank and they believe that
customers are the backbones. In short the bank achieves their objectives with their
motto “To be a progressive bank with a strong brand equity enhancing value for
all the stack holders through excellence in performance and good governance”.

29