ABSTRACT

In a business anything done financially affects cash eventually. Cash is to a business is what blood is to a living body. A business cannot operate without its life-blood cash, and without cash management, there may remain no cash to operate. Cash movement in a business is two-way traffic. It keeps on moving in and out of business. The inflow and outflow of cash never coincides. Important aspect which is unique to cash management is time dimension associated with the movement of cash. Due to non-synchronicity of cash inflow and outflow, the inflow may be more than the outflow or the outflow may be more than the inflow at a particular point of time. This needs regulation. Left to itself cash flow is apt to follow monotonic pattern, and showers of cash may be heavy, scanty or just normal. Hence there is a dire need to control its movement through skillful cash management. The primary aim of cash management is to ensure that there should be enough cash availability when the needs arise, not too much, but never too little.

INTRODUCTION
Cash management is a marketing term for certain services offered primarily to larger business customers. It may be used to describe all bank accounts (such as checking accounts) provided to businesses of a certain size, but it is more often used to describe specific services such as cash concentration, zero balance accounting, and automated clearing house facilities. Sometimes, private bank customers are given cash management services.

Cash Management Services Generally Offered
The following is a list of services generally offered by Bank and utilized by larger businesses and corporations:

Account Reconcilement Services: Balancing a checkbook can be a difficult process for a very large business, since it issues so many checks it can take a lot of human monitoring to understand which checks have not cleared and therefore what the company's true balance is. To address this, banks have developed a system which allows companies to upload a list of all the checks that they issue on a daily basis, so that at the end of the month the bank statement will show not only which checks have cleared, but also which have not. More recently, banks have used this system to prevent checks from being fraudulently cashed if they are not on the list, a process known as positive pay.

Advanced Web Services: Most banks have an Internet-based system which is more advanced than the one available to consumers. This enables managers to create and authorize special internal logon credentials, allowing employees to send wires and access other cash management features normally not found on the consumer web site.

Armored Car Services: Large retailers who collect a great deal of cash may have the bank pick this cash up via an armored car company, instead of asking its employees to deposit the cash.

Automated Clearing House: services are usually offered by the cash management division of a bank. The Automated Clearing House is an electronic system used to transfer funds between banks. Companies use this to pay others, especially employees (this is how direct deposit works). Certain companies also use it to collect funds from customers (this is generally how automatic payment plans work). This system is criticized by some consumer advocacy groups; because under this system banks assume that the company initiating the debit is correct until proven otherwise.

Balance Reporting Services: Corporate clients who actively manage their cash balances usually subscribe to secure web-based reporting of their account and transaction information at their lead bank. These sophisticated compilations of banking activity may include balances in foreign currencies, as well as those at other banks. They include information on cash positions as well as 'float' (e.g., checks in the process of collection). Finally, they offer transaction-specific details on all forms of payment activity, including deposits, checks, and wire transfers in and out, ACH (automated clearinghouse debits and credits), investments, etc.

Cash Concentration Services: Large or national chain retailers often are in areas where their primary bank does not have branches. Therefore, they open bank accounts at various local banks in the area. To prevent funds in these accounts from being idle and not earning sufficient interest, many of these companies have an agreement set with their primary bank, whereby their primary bank uses the Automated Clearing House to electronically "pull" the money from these banks into a single interestbearing bank account.

Lockbox services: Often companies (such as utilities) which receive a large number of payments via checks in the mail have the bank set up a post office box for them, open their mail, and deposit any checks found. This is referred to as a "lockbox" service.

Positive Pay: Positive pay is a service whereby the company electronically shares its check register of all written checks with the bank. The bank therefore will only pay

even if these deposits are all deposited into a single account. with exactly the same specifications as listed in the register (amount. Therefore. This allows them to earn interest overnight. zero balance accounting is being used less frequently. typically early in the day. A bank wire transfer is a message to the receiving bank requesting them to effect payment in accordance with the instructions given. it would be impossible to know which deposits were from which stores without seeking to view images of those deposits. • Controlled Disbursement: This is another product offered by banks under Cash Management Services. The actual wire transfer itself is virtually instantaneous. Companies with large numbers of stores or locations can very often be confused if all those stores are depositing into a single bank account. This allows the company to look at individual statements for each store. • Sweep Accounts: are typically offered by the cash management division of a bank. Under this system. • Zero Balance Accounting: can be thought of as somewhat of a hack.checks listed in that register. payee. Wire transfers can be done by a simple bank account transfer. To help correct this problem. Traditionally. excess funds from a company's bank accounts are automatically moved into a money market mutual fund overnight.). etc. This is the primary use of money market mutual funds. This system dramatically reduces check fraud. • Wire Transfer: A wire transfer is an electronic transfer of funds. banks are almost all converting their systems so that companies can tell which store made a particular deposit. or by a transfer of cash at a cash office. . U. Bank wire transfers are often the most expedient method for transferring funds between bank accounts. and then moved back the next morning.S. The message also includes settlement instructions. serial number. The bank provides a daily report. but all the money deposited into the individual store accounts are automatically moved or swept into the company's main bank account. banks developed a system where each store is given their own bank account. requiring no longer for transmission than a telephone call.

efficient utilization and effective conversation of its cash resources. • Cash Management Techniques: Every business is interested in accelerating its cash collections and decelerating cash payments so as to exploit its scarce cash resources to the maximum. Cash flow is a circle. It forewarns a business regarding expected cash problems. These facets include the following: • Optimum Utilization of Operating Cash: Implementation of a sound cash management programme is based on rapid generation. The quantum and speed of the flow can be regulated through prudent financial planning facilitating the running of business with the minimum cash balance. This early knowledge of daily funds requirement allows the customer to invest any surplus in intraday investment opportunities. typically money market investments. he would find that the major reason for the failure was their inability to remain liquid. There are techniques in the cash management which a business to achieve this objective. Cash management aims at evolving strategies for dealing with various facets of cash management. This can be achieved by making a proper analysis of operative cash flow cycle along with efficient management of working capital. Liquidity has an intimate . If one does the autopsies of the businesses that failed. where payments are issued through a remote branch of a bank and customer is able to delay the payment due to increased float time. companies could have daily faxes of their most recent transactions or be sent CD-ROMs of images of their cashed checks. thus assisting it to regulate further cash flow movements. • Cash Forecasting: Cash forecasting is backbone of cash planning.that provides the amount of disbursements that will be charged to the customer's account. Lack of cash planning results in spasmodic cash flows. • Liquidity Analysis: The importance of liquidity in a business cannot be over emphasized. This is different from delayed disbursements. other services have been offered the usefulness of which has diminished with the rise of the Internet. which it may encounter. In the past. For example.

relationship with efficient utilization of cash. • Profitable Deployment of Surplus Funds: Due to non-synchronization of ash inflows and cash outflows the surplus cash may arise at certain points of time. A business has to raise funds to the extent and for the period of deficits. . • Economical Borrowings: Another product of non-synchronization of cash inflows and cash outflows is emergence of deficits at various points of time. If this cash surplus is deployed judiciously cash management will itself become a profit centre. Rising of funds at minimum cost is one of the important facets of cash management. It helps in the attainment of optimum level of liquidity. However. much depends on the quantum of cash surplus and acceptability of market for its shortterm investments.

the public sector banks or the nationalized banks have acquired a place of prominence and has since then seen tremendous progress. Conservative banking practices allowed Indian banks to be insulated partially from the Asian currency crisis.) that have major problems linked to huge Non Performing Assets (NPAs) and payment defaults. The Indian banking can be broadly categorized into nationalized (government owned). The need to become highly customer focused has forced the slow-moving public sector banks to adopt a fast track approach. Driven by the socialist ideologies and the welfare state concept. The Indian banking has finally worked up to the competitive dynamics of the ‘new’ Indian market and is addressing the relevant issues to take on the multifarious challenges of globalization. Banks that employ IT solutions are perceived to be ‘futuristic’ and proactive . private banks and specialized banking institutions. Indian banks are now quoting al higher valuation when compared to banks in other Asian countries (viz. Since the nationalization of banks in 1969. They are the biggest purveyors of credit. Dominated by public sector. Co-operative banks are nimble footed in approach and armed with efficient branch networks focus primarily on the ‘high revenue’ niche retail segments. The unleashing of products and services through the net has galvanized players at all levels of the banking and financial institutions market grid to look anew at their existing portfolio offering.INDUSTRY PROFILE AN INTRODUCTION TO THE BANKING SECTOR IN INDIA Banks are the most significant players in the Indian financial market. public sector banks have long been the supporters of agriculture and other priority sectors. and they also attract most of the savings from the population. The Reserve Bank of India acts a centralized body monitoring any discrepancies and shortcoming in the system. Singapore. Hong Kong. They act as crucial channels of the government in its efforts to ensure equitable economic development. Philippines etc. the banking industry has so far acted as an efficient partner in the growth and the development of the country.

223 banks are in the public sector and 51 are in the private sector. government-owned banks) continue to dominate the Indian banking arena.e. preempting him and consequently . This transformation has been largely brought about by the large dose of liberalization and economic reforms that allowed banks to explore new business opportunities rather than generating revenues from conventional streams (i.players capable of meeting the multifarious requirements of the large customer’s base. private banks and specialized banking institutions.e. The major differentiating parameter that distinguishes these banks from all the other banks in the Indian banking is the level of service that is offered to the customer. The Indian banking can be broadly categorized into nationalized. borrowing and lending). Private Banks have been fast on the uptake and are reorienting their strategies using the internet as a medium The Internet has emerged as the new and challenging frontier of marketing with the conventional physical world tenets being just as applicable like in any other marketing medium. The Reserve Bank of India acts as a centralized body monitoring any discrepancies and shortcoming in the system. the industry has witnessed the entry of nine new generation private banks. It is the foremost monitoring body in the Indian financial sector. Their focus has always centered around the customer – understanding his needs. The liberalize policy of Government of India permitted entry to private sector in the banking. Indian nationalized banks (banks owned by the government) continue to be the major lenders in the economy due to their sheer size and penetrative networks which assures them high deposit mobilization. Industry estimates indicate that out of 274 commercial banks operating in India. The banking in India is highly fragmented with 30 banking units contributing to almost 50% of deposits and 60% of advances. The nationalized banks (i. The Indian banking has come from a long way from being a sleepy business institution to a highly proactive and dynamic entity. The private sector bank grid also includes 24 foreign banks that have started their operations here.

the private banks corner almost four per cent share of the total share of deposits. Most of the banks in this category are concentrated in the highgrowth urban areas in metros (that account for approximately 70% of the total banking business). These banks have generally been established by promoters of repute or by ‘high value’ domestic financial institutions. Management. With the Reserve Bank of India allowing these banks to operate 70% of their businesses in urban areas. superior product positioning and higher employee productivity skills. . Today. operational efficiency and flexibility. A strategy that has allowed these banks to concentrate on few reliable high net worth companies and individuals rather than cater to the mass market. These well-chalked out integrates strategy plans have allowed most of these banks to deliver superlative levels of personalized services. The private banks with their focused business and service portfolio have a reputation of being niche players in the industry. this statutory requirement has translated into lower deposit mobilization costs and higher margins relative to public sector banks. these banks have leveraged on their strengths and competencies viz.delighting him with various configurations of benefits and a wide portfolio of products and services. With efficiency being the major focus. The popularity of these banks can be gauged by the fact that in a short span of time. these banks have gained considerable customer confidence and consequently have shown impressive growth rates.

anywhere banking’ facilities. Some of the banks have also started home banking through telecommunication facilities and computer technology by using terminals installed at customers home and they can make the balance inquiry. For example SMS functions through simple text messages sent from your mobile. Today banks are also using SMS and Internet as major tool of promotions and giving great utility to its customers. Today MasterCard and Visa card are the two most popular cards used world over. currency accounting machines makes the job easier and self-service counters are now encouraged. The latest developments in terms of technology in computer and telecommunication have encouraged the bankers to change the concept of branch banking to anywhere banking. Credit card facility has encouraged an era of cashless society. These are also called as electronic purse. Through ECS we can receive the dividends and interest directly to our account avoiding the delay or chance of loosing the post. get the statement of accounts. The banks have now started issuing smartcards or debit cards to be used for making payments. Automatic voice recorders now answer simple queries. The messages are then recognized by the bank to provide you with the required information.PEST ANALYSIS TECHNOLOGICAL ENVIROMENT Technology plays a very important role in bank’s internal control mechanisms as well as services offered by them. It has in fact given new dimensions to the banks as well as services that they cater to and the banks are enthusiastically adopting new technological innovations for devising new products and services. The use of ATM and Internet banking has allowed ‘anytime. etc. give instructions for fund transfers. All these technological changes have forced the bankers to adopt customer-based approach instead of product-based approach. .

The present era in banking may be taken to have commenced with establishment of bank of Bengal in 1809 under the government charter and with government participation in share capital. banking has existed in one form or the other from time to time. then more FDI are brought in India through banking channels. then more deposits will be attracted towards the banks and in turn they can lend more money to the agricultural sector and industrial sector. In India. Allahabad bank was started in the year 1865 and Punjab national bank in 1895. Also the Union budget affects the banking sector to boost the economy by giving certain concessions or facilities. booming the economy. Sometimes the government appoints various chairmen of the banks. Various banks in the cooperative sector are open and run by the politicians. POLITICAL/ LEGAL ENVIROMENT Government and RBI policies affect the banking sector. If the FDI limits are relaxed. . Various policies are framed by the RBI looking at the present situation of the country for better control over the banks. They exploit these banks for their benefits. the Government declares some measures to their benefits like waiver of short-term agricultural loans. By doing so the profits of the bank get affected. others followed Every year RBI declares its 6 monthly policy and accordingly the various measures and rates are implemented which has an impact on the banking sector. and thus. therefore.ECONOMICAL ENVIROMENT Banking is as old as authentic history and the modern commercial banking are traceable to ancient times. to attract the farmer’s votes. If in the Budget savings are encouraged. Sometimes looking into the political advantage of a particular party.

. working women. In 1969 government nationalized 14 banks. etc. Banks having big clients or big companies have to provide services like personalized banking to their clients because these customers do not believe in running about and waiting in queues for getting their work done. consumer loans. consistent with social justice.SOCIAL ENVIROMENT Before nationalization of the banks. Accordingly. which is free from domination of law. and in which opportunities are open to all. Now the banks provide various types of loans to farmers. and traders. They also provide education loan to the students and housing loans. in democratic political system. To adopt the social development in the banking sector it was necessary for speedy economic progress. professionals. bankers were given direction to help economically weaker section of the society and also provide need-based finance to all the sectors of the economy with flexible and liberal attitude. their control was in the hands of the private parties and only big business houses and the effluent sections of the society were getting benefits of banking in India. Banks have changed the culture of human life in India and have made life much easier for the people. keeping in mind both the national and social objectives. But the banks do not mind incurring these costs because of the kind of business these clients bring for the bank. The bankers also have to provide these customers with special provisions and at times with benefits like food and parties.

PROMOTION 5. PRICE MIX 3. PEOPLE 6. PLACE 4. PHYSICAL EVIDENCE . The 7 P’s are: 1. PROCESS 7. PRODUCT MIX 2.7 P’S of BANKING SECTOR It is very important for any bank to identify the 7 P’s of services so was understands their customers better and provide them with best of service.

INTRODUCTION OF INDIAN OVERSEAS BANK Indian Overseas Bank (IOB) was founded on February 10th 1937. .M. a pioneer in many fields .Ct. Insurance and Industry with the twin objectives of specializing in foreign exchange business and overseas banking.Banking. Chidambaram Chettiyar. IOB had the unique distinction of commencing business on 10th February 1937 (on the inaugural day itself) in three branches simultaneously .at Karaikudi and Chennai in India and Rangoon in Burma (presently Myanmar) followed by a branch in Penang.M. by Shri.

OVERSEAS BRANCHES Indian Overseas Bank has become a major public sector bank in India with 1. The overseas branches and representative offices of IOB are located in the following areas: Colombo Hong Kong Singapore Seoul Bangkok Malaysia China Vietnam Dubai HISTORY OF IOB PRE-NATIONALISATION ERA (1947. As early as in 1957. the Bank established a training centre which has now grown into a Staff College at Chennai with 9 training centers’ all over the country.69) During the period. IOB established a full-fledged department to cater exclusively to the needs of the Agriculture sector.950 branches in India and 6 branches abroad. IOB was the first Bank to venture into consumer credit.64 Crs and Advances at Rs.6. . the Bank made a beginning in computerization in the areas of inter-branch reconciliation and provident fund accounts.3. Deposits stood at Rs. IOB expanded its domestic activities and enlarged its international banking operations. In 1968.23 Crs at that time. It introduced the popular Personal Loan scheme during this period. The bank is networked through 600 ATMs throughout the country. In 1964.At the dawn of Independence IOB had 38 branches in India and 7 branches abroad.

. • Accounting for MOCs suggested by the Auditors. Audit and Taxation • • Preparation of Bank’s Balance Sheet (Domestic) every month Preparation of Bank’s Balance Sheet (Global) and Profit and Loss Account at quarterly intervals. Balance Sheet. • Getting the quarterly accounts reviewed and annual accounts of the bank audited by the Statutory Central Auditors (both Domestic and Foreign branches) and performing all work connected with Audit arrangements.FUNCTIONS OF THE FINANCE DEPARTMENT A. • Preparation of Branch Audit Programme (including for Overseas Branches) and appointment of Auditors as per RBI guidelines.

Central Office • Providing guidelines to branches in respect of Prudential norms on Income Recognition. Fringe Benefit Tax and Wealth Tax matters. etc. • Submission of returns (annual and Quarterly) under Income Tax Act u/s 285 BA and 206A respectively. CO). (in so far as they are applicable) in liaison with OCD. Restructured Accounts (Provision and disclosure details in liaison with IARD). Liaison with ITD in matters requiring assistance for compilation / computation of data required for Tax returns / ACF returns / Capital Adequacy returns. Capital Adequacy as also computation of provisioning requirements for Non Performing Assets including the movement. II and III on half yearly basis. • Matters in so far as they relate to provisions for Technical Write Off accounts (in liaison with ARD. Rebated Interest etc. Including the presentation of Bank’s case/relevant papers before Income tax Officer / Commissioner of Income Tax / Appellate Tribunal and the Committee on Disputes and taking up through approved advocates. in co-ordination with ITD.• Compliance of statutory requirements relating to quarterly review of Accounts by Statutory Central Auditors • Bank’s Income Tax. . • Coordination with other Departments at Central Office / Regional Offices as also with Auditors and Regional Office in compilation of Long Form Audit Report and in replying to the same besides placing it to ACB / Board. • Consolidation of details of Furniture and Fixtures (both domestic and Foreign) exclusively from the point of view of tax audit purposes. Derecognised Interest. MOCs. Asset Classification and Loan Loss Provisioning. • • Consolidation of HYR Summary I. before High court / Supreme court wherever necessary.

besides circulating guidelines of Asset Liability Management Committee on Transfer Price Mechanism. C. • Monitoring Risk Weighted Assets and Computation of Bank’s Capital Adequacy Ratio.O Interest claims. Compliance to Regulator’s Requirements: • Submission of DSB (Department of Supervision-Banking) returns. MAP / FIR / IRS which are dealt by Treasury (Foreign) Dept. Vouching for Technical Write off (on receipt of data thereof from ARD) • . to RBI every month / quarter / half year and year.Vouching of C. Co-ordination and assistance to Inspection Department in so far as they relate to AFI’s queries on Accounts Department functions. • Reimbursement of write off of bad debts to branches.O.B. Profit and Loss Account and General Ledger. (As per BASLE I) and furnishing of data as required by RMD. • Submission of various returns/data relating to Balance Sheet to RBI and Government of India. vouching for transfer from Branches to Central Office and Retransfer from Central Office to Branches • Transfer Price Mechanism . other than returns viz. besides submission of Monthly Profit & Loss report to Top Management • Maintenance of Unclaimed Balances Account. as per the periodicity specified from time to time. (Returns/Data collected from all Regional Offices/Departments at Central Office are complied and final returns are prepared for submission to RBI). Interest and reimbursement of C. General Accounting Functions: • Maintenance of Central Office Day Book. • Assistance in matters relating to Annual Financial Inspection in so far as they relate to Annual accounts./ RMD.

Allocating GL / PL codes in so far as Central office is concerned in liaison with ITD / MSD. • Co-ordination with Nodal Centres / Regional Offices in ensuring compliance to various Audit requirements/giving effect to AFI observations in so far as they relate to divergence in provisioning requirements. etc for rating purposes as and when required. D. • Matters relating to erstwhile Bank of Tamilnadu Ltd (follow up including final valuation of Assets and formalities to be observed regarding reconciliation of the balance in liaison with RBI) • Reimbursement of TDS on Government business to Branches/Departments on obtaining original TDS certificates. . Other Services: • Providing Accountancy and Consultancy Services and furnishing key Data to other Departments as and when required. • Providing assistance to Investor Cell / Funds Department etc. • Assistance to PCD in matters relating to obtention of certificates for concessional interest extended etc. in matters pertaining to raising of Capital / Certificate work on networth / raising of Bonds etc. ICRA. FITCH. • Reimbursement of loss to Branches/Regional Offices and vouching of Profit/Loss every half year. to facilitate obtention of their reimbursement in due course. • Coordinating the collection of necessary data for submission to the rating institutions such as CRISIL.• Payment of Audit fees to Statutory Auditors/Branch Auditors and Reimbursement of TA/HA to Auditors.

Public Relations Dept. .. • Assistance to PCD (Agri) in so far as co-ordination with Auditors concerned in matters relating to obtention of certificates for interest subsidy claim. Agri Debt waiver / relief scheme..• Assistance / in liaison with Printing and Stationery Dept. etc. distribution of Annual Reports to our offices / other Banks / other important entities registered with us. OLD / FED in matter relating to printing of Annual accounts of the Bank.

We have more than 1950 branches in India. With Indian Overseas Cash Management services. You will also be able to take advantage of our outstanding range of Payments. Account Services and Liquidity Management for both corporate and institutional customers. superior cross-border and local services  Efficient transaction processing  Reliable financial information  Innovative products For Corporates Indian Overseas is highly recognized as a leading cash management supplier across the emerging markets.  Payments Services  Collection Services  Liquidity Management For Financial Institutions Indian Overseas is highly recognized as a leading cash management supplier across the emerging markets. Our Cash Management Services cover local and cross border Payments. Securities Services and Trade Services through our strong market networks in different countries. Information Management. Indian Overseas can help you.CASH MANAGEMENT AT INDIAN OVERSEAS BANK Cash Management As part of Indian Overseas global transaction solutions to Corporates and Institutions. you have everything it takes to manage your cash flow more accurately. you'll always know your exact financial position. and . we provide Cash Management. Account Services and Liquidity Management for both corporate and institutional customers. If you are looking for a correspondent banking partner you can trust. We are committed to providing you with  Integrated. Liquidity and Investment Services and receive comprehensive reports detailing your transactions. Our Cash Management Services cover local and cross border Payments. Collections. You have the flexibility to manage your company's complete financial position directly from your computer workstation. Collections. Information Management. Collections. With Indian Overseas.

9 branches throughout the world. We can help our bank clients with all their cash management needs. Payment Services Global payments solution for efficient transaction processing Looking to outsource your payments to enable:  Efficient processing of all your payables in the most cost effective way  Straight through processing both at your end as well as your bank's back-end  Efficient payables reconciliation with minimal effort and delay  Quick approval of payments from any location  Minimum hindrance to automation due to local language difficulties  Centralized management of payables across departments, subsidiaries and countries

Collection Services Comprehensive receivables management solution. Indian Overseas understands that operating and sustaining a profitable business these days is extremely tough. In an environment of constant changes and uncertainties, most businesses face challenges of costs and efficiency. Key concerns include:  Receivables Management - ensuring receivables are collected in an efficient and timely manner to optimise utilisation of funds.  Risk Management - ensuring effective management of debtors to eliminate risk of returns and losses caused by defaulters and delayed payments  Inventory Management - ensuring efficient and quick turnaround of inventory to maximise returns.  Cost Management - reducing interest costs through optimal utilisation of funds. Liquidity Management A corporate treasurer's main challenge often revolves around ensuring that the company's cash resources are utilised to their maximum advantage. You need a partner bank that can help you:

 Maximise interest income on surplus balances; minimise interest expense on deficit balances for domestic, regional and global accounts  Minimise FX conversion for cross-currency cash concentration  Customise liquidity management solutions for different entities in different countries  Centralise information management of consolidated account balances

Purpose of Cash Management Cash management is the stewardship or proper use of an entity’s cash resources. It serves as the means to keep an organization functioning by making the best use of cash or liquid resources of the organization. The function of cash management at the U.S. Treasury is threefold: 1. To eliminate idle cash balances. Every dollar held as cash rather than used to augment revenues or decrease expenditures represents a lost opportunity. Funds that are not needed to cover expected transactions can be used to buy back outstanding debt (and cease a flow of funds out of the Treasury for interest payments) or can be invested to generate a flow of funds into the Treasury’s account. Minimizing idle cash balances requires accurate information about expected receipts and likely disbursements. 2. To deposit collections timely. Having funds in-hand is better than having accounts receivable. The cash is easier to convert immediately into value or goods. A receivable, an item to be converted in the future, often is subject to a transaction delay or a depreciation of value. Once funds are due to the Government, they should be converted to cash-in-hand immediately and deposited in the Treasury's account as soon as possible. 3. To properly time disbursements. Some payments must be made on a specified or legal date, such as Social Security payments. For such payments, there is no cash management decision. For other payments, such as vendor payments, discretion in timing is possible. Government vendors face the same cash management needs as the Government. They want

to accelerate collections. One way vendors can do this is to offer discount terms for timely payment for goods sold. OBJECTIVES OF THE STUDY PRIMARY OBJECTIVES:  To prepare the Cash Management in Indian Overseas Bank. SECONDARY OBJECTIVES:  To gain insights about functioning of Indian Overseas Cash Management.  To explore the future prospects of Indian Overseas cash management.  To learn about various aspects of Indian Overseas Cash Management.  To analyze how the bank manages cash to maximize its availability  To analyze how the Bank distributes its various cash activities.

Research is guided by the specific research problem. 7. by its nature. cyclical. Research accepts certain critical assumptions. or a greater understanding of a phenomenon. has eight distinct characteristics: 1. 4. Descriptive research is used in this project report in order to know about cash management services to clients and determining their level of satisfaction. 6. The method used were following:  Questionnaire method . Research is. helical. 8. 3. Research usually divides the principal problem into more manageable subproblems. generally used in survey research design and most useful in describing the characteristics of consumer behavior. Research originates with a question or problem. This process. the resolution of a problem. or hypothesis. 5. This is the most popular type of research technique. question. Research follows a specific plan of procedure. or more exactly. Research requires a clear articulation of a goal. 2. which is frequently called research methodology. Research requires the collection and interpretation of data in attempting to resolve the problem that initiated the research.Research Methodology Research is a process through which we attempt to achieve systematically and with the support of data the answer to a question.

The sources of Primary data were questionnaires and personal interviews.  Percentage analysis : 99 : Weighted average. The analysis is basically aimed at giving preference of association or difference between the various tables present in the research. Direct Interaction with the clients. Statistics: The term ‘statistics’ refers to a measured value based upon sample data. Chi-Square : Survey : Questionnaire : Chennai : Descriptive Study : Primary and Secondary .  Secondary data: . MODE OF DATA COLLECTION  Primary Data: . The data analysis is carried out.the sources of secondary data were internet. After collection of data the questionnaires were scrutinized and tabulated followed by analysis and interpretation using statistical techniques mentioned below. Percentage analysis. books and newspaper articles. Type of study Source of Data Sampling Size Research tools Research approach Research instrument Place of Study TOOLS FOR ANALYSIS Data Analysis: In order to extract meaningful information from the data collected.

analysis skills and so on. Then the values are noted in the column as a percentage. The advantages of evaluating the percentage analysis are Easy and simplicity of calculation General understanding of the purpose Easy computations. of respondents Percentage analysis = ------------------------. the total population is noted in a tabular column.e. Percentage analysis can be calculated as follows: First of all the frequency i.X 100 Sample size Weighted Average: The main aim of weighted average is to determine average of respondent to the scale formula Σwi*xi/Σxi Xi = respondent Wi = weightage Chi-Square Test: . No.e. Then the percentage is calculated by dividing each frequency with the total population and then multiplied by 100. Charts Percentage Analysis: The general purpose of percentages is to serve as a relative measure i.. they are used to indicate more clearly the relative size of two or more numbers. In the percentage analysis percentage is calculated by multiplying the number of respondents into hundred and it is divided by the sample size.

Chi Square is a non parametric test used by marketing researcher to test hypothesis. χ2 =Σ [(Oi-Ei)2 /Ei] Oi = Observed value Ei = Expected value Ei = (Observed Row Total x Observed column Total)/ Aggregate total Degree of freedom = (Row – 1) x (column – 1) H0 = Null hypothesis H1 = Alternate hypothesis If calculated value > Table value (Reject H0) If calculated value < Table value (Accept H0) .Chi-Square Test is used to determine if there is any association between two opinions. This test is employed for testing hypothesis when distribution of population is not known and when nominal data is to be analyzed. It is also used to find out the effectiveness of any opinion or preference. If the calculated value is less than the table value null hypothesis(H0) is accepted. If the calculated value is greater than the table value then the alternative hypothesis(H1) is accepted.

"Cash is the lifeblood of a [store]. "Without cash for inventory. and disbursement of cash. It is only natural that major business expenses are incurred in the production of goods or the provision of services. the company is insolvent. concentration. Davidson and Charles W. an emergency is imminent." wrote Richard Outcalt and Patricia Johnson in Playthings. cash flow can be a problem even when a small business has numerous clients. They also may experience trouble in finding the funds for innovation or expansion. and its short-term investment strategies. Insolvency is the primary reason firms go bankrupt. It improves the profitability and reduces the risk to which the firm is exposed. If at any time a company fails to pay an obligation when it is due because of the lack of cash. In addition. and enjoys a sterling reputation in its industry. efficient cash management means more than just preventing bankruptcy. In most cases. Obviously. employee salaries and other expenses drain considerable funds from most businesses. Cash management is particularly important for new and growing businesses. payroll. managing cash flow is the most important job of business managers. a business incurs such expenses before the corresponding payment is received from customers. the prospect of such a dire consequence should compel companies to manage their cash with care.LITERATURE REVIEW REVIEW OF CASH MANAGEMENT Cash management is a broad term that refers to the collection. These factors make effective cash management an essential part of any business's financial planning. spend most or all of these . and other expenses. It encompasses a company's level of liquidity. Moreover. intent on growing their company and tamping down debt. Finally. In some ways. offers a superior product to its customers. Companies suffering from cash flow problems have no margin of safety in case of unanticipated expenses." When cash is received in exchange for products or services rendered. poor cash flow makes it difficult to hire and retain good employees. Dean indicated in their book Cash Traps. many small business owners. its management of cash balance. As Jeffrey P.

These three "floats" are time delays that add up quickly. and deposit the payment (check)—is one way to speed up the collection. Some of the sources of time delays are mail float. an envelope mailed by a customer containing payment to a supplier firm does not arrive at its destination instantly. automated clearinghouse (ACH) transfers. establishing effective billing and collection measures. process. Likewise. the time delays involved for mail. is establishing strong billing and collection practices. But while such priorities are laudable. Another aspect of cash management is knowing a company's optimal cash balance. processing. and the prevailing interest rate that can be earned on excess funds. The most important element in ensuring good cash flow from customers. and checks. There are numerous mechanisms that can be employed to concentrate the cash. among other things. to decrease the length and impact of these "float" periods. The tradeoff is between cost and time. Obviously. A collection receipt point closer to the customer—perhaps with an outside third-party vendor to receive. the costs of processing payments. and banking. Cash Collection and Disbursement Cash collection systems aim to reduce the time it takes to collect the cash that is owed to a firm. lies in tabulating realistic projections. The key to successful cash management. when the payment is deposited in the bank account oftentimes the bank does not give immediate availability to the funds. monitoring collections and disbursements. which is the precise . and bank float. therefore. The effectiveness of this method depends on the location of the customer. the size and schedule of their payments. processing float. And finally. most firms then proceed to concentrate the cash into one center. and adhering to budgetary restrictions. however.funds. the firm's method of collecting payment. There are a number of methods that try to determine this magical cash balance. Once the money has been collected. Cash management attempts. the payment is not processed and deposited into a bank account the moment it is received by the supplier firm. and they can force struggling or new firms to find other sources of cash to pay their bills. The rationale for such a move is to have complete control of the cash and to provide greater investment opportunities with larger sums of money available as surplus. such as wire transfers. they should leave room for businesses to absorb lean financial times down the line.

…If deliveries do not automatically trigger an invoice." Businesses should also include a payment due date.amount needed to minimize costs yet provide adequate liquidity to ensure bills are paid on time (hopefully with something left over for emergency purposes). especially during their first years of operation. However. and the Net Liquid Balance (cash plus marketable securities less short-term notes payable. including: the Cash to Total Assets ratio. obtaining some cash—even if your company is not at fault in the dispute—for products sold/services rendered may be required to pay basic expenses. or the amount of money on hand to meet current obligations. divided by current liabilities). Small business owners are understandably reluctant to consider this step. The higher the number generated by the liquidity measure. but in certain cases. • Closely monitor and prioritize all cash disbursements. there is a tradeoff between liquidity and profitability which discourages firms from having excessive liquidity. "Bill promptly and accurately." counseled the Journal of Accountancy. the faster you will be paid. But entrepreneurs and managers can take steps to minimize the impact of such problems and help maintain the continued viability of the business. • • • Offer small discounts for prompt payment. preferably weekly. There are numerous ways to measure this. divided by total assets). Consider compromising on some billing disputes with clients. the greater the liquidity—and vice versa. Redouble efforts to collect on outstanding payments owed to the company. the Current ratio (current assets divided by current liabilities). . establish a set billing schedule. One of the first steps in managing the cash balance is measuring liquidity. Cash Management in Troubled Times Many small business experience cash flow difficulties. the Quick ratio (current assets less inventory. "The faster you mail an invoice. Suggested steps to address temporary cash flow problems include: • Create a realistic cash flow budget that charts finances for both the short term (30-60 days) and longer term (1-2 years).

Assess other areas where operational expenses may be cut without permanently disabling the business. "Every operation struggling for survival is losing money in some of its components." states the Journal of Accountancy. "Better credit terms translate into borrowing money interest-free. many ways to improve and re-engineer the processes. such as payroll or goods/services with small profit margins. the more involved the process will be. In some cases. (1) Commit to change: Recognize the need for improvement and commit to change (this commitment must come from top management and cannot be just lip service). How to Improve Cash Management Practice in India? There are. depending on budgets and also to minimise disturbances to the business. that is—cut out the losers." • Start with understanding how good cash-management practices can influence your company's growth and survival by reading "The Art of Cash Management." observed Outcalt and Johnson. "[As you analyzed your business]." Inc Finance Editor Jill Andresky Fraser's classic article on the topic. you probably noticed some places where cash was bleeding out of your business without an adequate return. • • Liquidate superfluous inventory. you may be able to arrange better payment terms from suppliers or banks. (2) Establish a credible project team: . However. lenders.• Contact creditors (vendors. Note that the larger the corporation. landlords) and attempt to negotiate mutually satisfactory arrangements that will enable the business to weather its cash shortage (provided it is a temporary one). Plan to step the bleeding. of course. the following are the suggested simple and initial steps.

The project team must have a credible and strong project leader and be sponsored by the decision maker(s). For example. sequence and timeframe: Action points. Quickly shortlist potential providers for further in-depth discussions and presentations. practical goals and objectives: There must be a true desire and commitment to improve and make changes for the better. the process should be evolutionary and practical. (6) Establish and commit to specific initiatives. however. a goal may be to achieve costs savings and efficiency gains on the process of collecting revenues and reconciling with the accounts receivable system. Ask questions such as: Is electronic banking used? To what degree? How are revenues collected and how are payments made? How many staff are dedicated to these functions? What is the decision-making and authorisation chain? What information is available from internal management information systems? (4) Review services available in the marketplace: Review existing service providers and other service providers. initiatives and a realistic time frame must be decided for achieving each initiative. Develop a good idea of what solutions. (3) Study the existing internal financial transaction processes: This is straightforward and a simple overview. Communicate these to the providers. The goals should be at a higher level than where the company is now and the initial level of improvement. For example. an initiative may include automating and outsourcing vendor payments. (5) Establish high-level. services and products are on offer. Take care to ensure goals are not artificially set for easy attainment nor established for ideal perfection so to be unreachable or unrealistic. (7) Obtain simple written proposals from the shortlisted potential providers: . making initial presentations and discussions with banks and providers.

Also. services and products meet your objectives. such as one-year or two-year.Have providers present proposals and be prepared to ask questions and probe exactly what is being offered and whether the proposed solution. For example. There should also be an ongoing emphasis on improvement. and a culture for empowering staff to recommend and look for ways and means to improve cash management services and processes. (9) Review the internal project team and add actual users to help implement the proposed changes: This process is to help obtain commitment from the bottom up and to gain the buy in of internal users. and the start dates. This needs to be encouraged. there could be a domestic collection bank and a regional account management bank. a mutually designed and agreed schedule and action plan should be established. (10) Review. Document all goals and services as well as pricing and the period the pricing covers. Management and users must commit to the discipline of cash management DATA INTERPRETATION AND ANALYSIS . establish and commit to a process for ongoing improvement: Services should be reviewed once implemented to ensure that the high-level goals and objectives are obtained. (8) Decide on the solution and decide on a provider(s): It is not necessary to have only one provider of services. The bank provider(s) should also have a parallel team to work with your implementation or project team. Look for comprehensive. especially with the new developments in technology afforded by the Internet. well thought-out and realistic solutions.

PERCENTAGE ANALYSIS Table 1: Age of the Respondents S.No 1 2 3 Age 20-30 years 31-40 years >41 years Total No.10% of the respondents is above 41 years.33% of the respondents are belongs to the age group 31-40 years and balance 10% 20-30 yrs 33% 31-40 yrs 57% >41 yrs .57% of the respondents are in the age category of 10. 33. Age of the Respondents 20-30 years.10 100 Inference: The above table shows that 56.of Respondents 56 33 10 99 Percentage 56.57 33.33 10.

30 59.3 Percentage 59.60 10.10% of the respondents the Respondents respondents is doing own business.6 .No 1 2 3 Occupation Govt.Table 2: Occupation of the Respondents S.60% of theOccupation ofare in Private company and balance 10.10 100 Inference: The above table shows that 30.30% of the respondents are working in Government company. 70 60 50 40 30 20 10 0 1 2 3 10.of Respondents 30 59 10 99 Percentage 30.1 30. company Private company Own business Total No. 59.

50 22.of Respondents 28 49 22 99 Percentage 28.Table 3: Annual Income of the Respondents S.22 100 .28 49.No 1 2 3 Annual Income Below 1 lakh 1-3 lakhs Above 3 lakhs Total No.

3 lakhs and 22.28% of the respondents earning below 1 lakh.50% of the respondents earning 1. Annual Income of the Respondents 49.22 Percentage 1-3 lakhs Above 3 lakhs Table 4: Response regarding the aware of IOB straight to bank services .5 50 40 30 20 10 0 Below 1 lakh 28.28 22.Inference: The above table shows that 28.22% of the respondents earning above 3 lakhs. 49.

The bank can look into companies as to propose its services to the concerned company personnals.38 35. 10% Yes No 90% Table 5: Response regarding in which bank they have an account S.90% of the companies are aware of the cash management services provided by the bank and only 10.No 1 2 3 Opinion Axis Bank Indian Overseas Bank HSBC Bank No.10% of the companies are not aware.of Respondents 89 10 99 Percentage 89.35 .No 1 2 Inference: Opinion Yes No Total No.90 10.22 37.10 100 The above table shows that 89.of Respondents 22 37 35 Percentage 22.S.

22% of the respondents are have there account in Axis Bank.05 Axis Bank IOB HSBC Bank Bank Of America .35 Percentage 5.35% of the respondents have there account in HDFC Bank and balance 5.22 35. Percentage 40 35 30 25 20 15 10 5 0 37.05 100 Inference: The above table shows that 22.4 Bank Of America Total 5 99 5.05% of the respondents Having account in Bank Of America.37.38 22.38% of the respondents having account in Indian Overseas Bank then 35.

93 7. .93% of the companies are Lucrative about the products/services provided by IOB and only 7.of Respondents 92 7 99 Percentage 92.Lucrative in perceptions.07 100 Inference: The above table shows that 92.No 1 2 Opinion Lucrative Non .Lucrative Total No.Table 6: Response regarding about different product/ services provided by IOB S.07% of the companies are Non .

85 5.10 84.7% lucrative Non lucrative 93% Table 7: Response regarding the satisfaction of terms and conditions available to maintain an account at IOB S.No 1 2 3 Opinion Highly satisfied Moderate satisfied Dissatisfied No.of Respondents 10 84 5 Percentage 10.05 .

of Respondents 75 24 99 Percentage 75. Percentage 100 80 60 40 20 0 10.Total Inference: 99 100 The above table shows that 10.10% of the respondents are highly satisfied with the terms and conditions of IOB to maintain there account.76 24.24 100 Inference: .05 highly satisfied moderate satisfied dissatisfied Table 8: Response regarding the financial crisis in US affecting the functioning here in India S.1 84. 84.85 Percentage 5.No 1 2 Opinion Yes No Total No.85% of the respondents are moderately satisfied and 5% of the respondents are dissatisfied.

of Respondents 7 46 40 Percentage 7. 24% Yes No 76% Table 9: Response regarding the satisfaction of IOB services S.No 1 2 3 Opinion Excellent Satisfied Neutral No.76% of the respondents are gradually saying that financial crisis in US affecting the functioning in India and 24.The above table shows that 75.40 .24% of them are not affecting.47 40.07 46.

07 6. Percentage 50 45 40 35 30 25 20 15 10 5 0 46.07% of the companies are saying excellent services providing by IOB.4 Dissatisfied Total 6 99 6.40% of the companies are neutrally satisfied with their services and 6.4 Percentage 7.47 40.47% of the respondents are satisfied with the services of IOB then 40.06 100 Inference: The above table shows that 7.46.06% of the respondents are dissatisfied.06 Excellent Satisfied Neutral Dissatisfied Table 10: Response regarding how many transactions process monthly .

of Respondents 11 83 Percentage 11.36 100 Inference: The above table shows that 63.No 1 2 Opinion Cash Cheque No.No 1 2 Opinion 1 to 3 times Above 3 times Total No.36% of them are process transaction above 3 times in a month.64 36.64% of the respondents are in opinion for 1 to 3 times transactions process monthly and 36.84 . 36% 1 to 3 times above 3 times 64% Table 11: Response regarding the modes of Premium collection S.of Respondents 63 36 99 Percentage 63.S.11 83.

83. .of Respondents 19 80 99 Percentage 19.19% of them in need of Centralized collection system.05 100 Inference: The above table shows that 11.3 Demand draft Total 5 99 5.19 80.84 Cash Cheque Demand Draft Table 12: Response regarding the collection system S.81 100 Inference: The above table shows that 80. Percentage 100 80 60 Percentage 40 20 0 11.11% of the respondents are collected Premium through Cash.05 83.81% of the companies are in need of Decentralized Collection System and only 19.84% of them collect Premium through Cheque and only 5% of the respondents collect Premium through Demand draft.No 1 2 Opinion Centralized Decentralized Total No.11 5.

95% of them are accept premium through credit cards and only 5.Percentage 100 80 60 40 20 0 centralised decentralised 19.95 5.19 80.05 100 Inference: 5% The above table shows that 94. Yes No 95% .of Respondents 94 5 99 Percentage 94.No 1 2 Opinion Yes No Total No.81 centralised decentralised Table 13: Response regarding the acceptance of premium through credit cards S.05% of them are not accepted.

90 5.No 1 2 3 Opinion Cash Cheque Demand draft Total No. 89.05% through Demand draft.Table 14: Response regarding the modes of making Payments S. 5% 5% Cash Cheque Demand Draft 90% .05 100 Inference: The above table shows that 5.05 89.05% of the companies making payments through Cash.90% of them making Payments through Cheque and 5.of Respondents 5 89 5 99 Percentage 5.

90% of the companies are not interested to reinsure and 10.90 100 Inference: The above table shows that 89.9 Percentage . Percentage 100 80 60 40 10.Table 15 : Response regarding the policies reinsure S.1 20 0 Yes No 89.No 1 2 Opinion Yes No Total No.10 89.10% of them are reinsure their policies.of Respondents 10 89 99 Percentage 10.

CHI. of Respondents 56 33 10 99 Age 20-30 31-40 >41 Total Null Hypothesis(H0): There is no significant difference between Respondents age and services about the Indian Overseas Bank. .SQUARE ANALYSIS: Relationship between Respondents age with the services of Indian Overseas Bank: Services of Indian Overseas Bank Excellent Satisfied Neutral Dissatisfied 6 1 0 7 26 15 5 46 20 15 5 40 4 2 0 6 No.

607 4 The calculated value is Degree of freedom : 4 : (r-1)(s-1) = (3-1)(4-1) = 6 .02 15.96 2.39 2 0.61 O-E 2.37 0 0.61 (O-E)2 4.37 Total χ 2 =(O-E)2/E 1.11 0.79 0.71 -0. Hypothesis calculation: O 6 1 0 26 15 5 20 15 5 4 2 0 E 3.209 0.007 0.63 1.65 22.02 -0.05 0.61 0 -0.33 0.04 3.04 -1.92 0.Alternative Hypothesis(H1): There is significant difference between Respondents age and services about the Indian Overseas Bank.33 4.50 0.026 0.16 1.63 13.33 0.0004 0.33 -0.228 0.33 4.70 0 0.35 2.12 6.67 0.96 0.109 0 0.92 2.71 26.76 0.77 0.306 0.

This implies that there is no significance difference between the Respondents age and the services of Indian Overseas Bank. . Inference: The calculated value is less than the tabulated value.Level of significance Tabulated value is : 5% : 12.59 Since calculated value for chi-square test is lesser than the tabulated value. Hence Null hypothesis is accepted. the Null hypothesis is accepted.

of Respondents 27 49 23 99 Annual Income Below 1 lakh 1-3 lakhs Above 3 lakhs Total Null Hypothesis (H0): There is no significant difference between Respondents Annual Income and Terms and Conditions available to maintain an account. Alternative Hypothesis (H1): .Relationship between the Respondents Annual Income with the Terms and conditions available by the Indian Overseas Bank: Terms and Conditions of IOB Highly Satisfied Moderate Satisfied Dissatisfied 8 1 1 10 19 46 19 84 0 2 3 5 No.

58 19.74 15.60 The calculated value is Degree of freedom Level of significance Tabulated value is : 19.47 1.15 0.77 15.39 Total χ 2 =(O-E)2/E 10.32 22.16 O-E 5.17 3.84 (O-E)2 27. Hypothesis calculation: O 8 1 1 19 46 19 0 2 3 E 2.27 1.85 0.There is significant difference between Respondents Annual Income and Terms and Conditions available to maintain an account.60 1.47 0.36 2.52 -1. the Null hypothesis is Rejected.95 1.36 -0.73 4.488 Since calculated value for chi-square test is greater than the tabulated value.47 1.60 : (r-1)(s-1) = (3-1)(3-1) = 4 : 5% : 9.91 4.29 19.42 0.95 2.014 1.52 1.54 0.75 0.92 19.91 41.36 0. Inference: .32 -3.67 0.089 2.27 -3.22 3.

.The calculated value is greater than the tabulated value. Hence Null hypothesis is Rejected. This implies that there is significance difference between the Respondents Annual Income and Terms and Conditions available to maintain an account.

It was difficult getting time and access to senior level Finance/HR managers (who had to be talked to. CONCLUSION The study allowed us get answers regarding the service awareness among people and the problems it faces. 2.LIMITATIONS Following are the limitations faced by me during this project: 1. keeping in mind the long duration it can take at times. to get required information) due to their busy schedules and prior commitments. The key findings and analysis of the survey shoed the following . to close a particular corporate deal. A few of the managers refrained from giving the required information as he considered I to be from their confidential domains. The study might not produce absolutely accurate results as it was based on a sample taken from the population. The allotted time period of 6 weeks for the study was relatively insufficient. 3. 4.

• Almost all customers once educated about the service readily enrolled for it whereas a mere portion did not trust the bank and thought that the bank would have some hidden charges that they are not putting forward Many clients who enrolled for the staright2bank service would have problems using it as the drop boxes are not strategically placed many areas do not even have drop box facility. this is clear that almost all the attributes of the services are favorable to the customers still customers are not using the service and are not even aware of it. They should assign it to the regional office or allow branches to put up boxes where the branch thinks it would be optimally utilized no matter which area of the city as of now that branches are allowed to put up drop boxes in a radius which falls . Standard chaetered Bank must look into the policies of installing the drop box.• A large number of clients and customers call the branch frequently to handle banking issues . • The service provided by staright2bank does offer the main requirements of the customers for which they visit or call the branch • All the respondents wanted to carry out the banking needs at their convenience. this shows the keenness of the customers to call the branch for almost every small issue. thereby proving that the service does have the potential usage. • Customers were not aware that the service was a free one. This means the service caters the banking needs that customers generally require and its main benefit of banking while sitting at office is desired by one and all. The service Straight2bank does provide an answer to the problem of the customers. • Few of the respondents were aware about the service which was desired by 100% respondents clearly showing that there has been a falter in its promotion and awareness strategies.

because of services we provide. so that benefits can be passed on to customers. • If charges can’t be reduced because of costs involved. Even then. its promotional campaign focuses on western region where as northern region is still waiting for promotional campaigns. which Standard chartered Bank could take so as to take on heavy competition from HSBC Bank and ABN AMRO Bank: • To identify regions where promotions are required.monetary benefits. Senior managers at SCB keep on telling that it is difficult to reduce cost. SCB lacks visibility in western region where as it is a well known name in western region. people at times go for monetary benefits rather than for long-term non. India being a price sensitive market. • Try to reduce cost. • SCB should provide competitive prices as nowadays a lot business is being acquired by AXIS bank and HSBC bank and SCB is facing a lot competition from these banks . But the fact is. A customer who lives close by to the branch would not use this service whereas customers who are far of require the service. however the branch cannot provide them with the facility as they cannot install the boxes in that area and it is the duty of the local branch of that area to put up boxes which is not happening they hardly know where customers of the other branch are located RECOMMENDATIONS We suggest following measures. so that services are provided to only those customers who are willing to pay the price for services they are getting and let the other customers enjoy costs benefits without getting services. make the services customized.in close by areas to the branch.

This will help SCB in providing best services to customers.• SCB should contact with their clients regularly for knowing the problems faced by them. • SCB should focus on getting the business other business clients other than its existing customers as it would help them to increase their business opportunities. • SCB should provide a separate relationships manager who should be liable to handle all the needs of the client as the clients here are big corporate giants. A Study on Cash Management with reference to Indian Overseas Bank at Adambakkam Branch I am student of Sri Muthukumaran Institute and Technology. Personal Information Name of the respondent: Age of the respondent: (a) (c) Sex: Male 20-30 yrs Female (b) 30-40 yrs Above 40 yrs . I am doing this research to compare different charges and services provided by trading firm to its clients. This will result in additional customer base by getting further references from satisfied clients.

(a) 8. (a) 4.Marital Status: (a) Married (c) (b) Unmarried Private Company Occupation of the respondent: (a) Annual Income: (a) > (c) 1. (a) 10. (a) (c) 9. Yes Axis bank HSBC Bank lucrative below 1lakh Above 3lakhs (b) (b) (d) (b) Govt. (a) 6. Does the financial crisis in US affecting your functioning here in INDIA? Yes Excellent 1 to 3 times Cash Demand Draft Do you have centralized collection system or decentralized collection system? Centralized (b) Decentralized Do you accept premium through credit cards? (b) (b) (b) No Satisfied (b) (c) Neutral (d) Dissatisfied Are you satisfy with IOB services? Approximately how many transactions do you process monthly? Above 3 times Cheque What are your main modes of premium collection? . (a) 7. (a) (c) 3. Company (b) Own Business (b) 1-3lakhs Are you aware of Indian Overseas Bank straight to bank services? No Indian Overseas Bank Bank Of America Non.lucrative In which bank do you have your account? What is your perception about different products/services provided by IOB? Are you satisfy with the terms and conditions available to maintain an account at Indian Overseas Bank? (a) highly satisfied (b) Moderate satisfied (c) Dissatisfied 5. (a) 2.

(a) Yes Cheque DD (b) (b) No Cash What are your main modes of making payments? Do you reinsure your polices? Yes (b) No .(a) 11. (a) (c) 12.