Summer Internship Project Report ON

OPERATIONS AND LOANS OF ORIENTAL BANK OF COMMERCE

Submitted in partial fulfilment of requirement of Bachelor of Business Administration (B.B.A) General

BBA V(A) Semester, Evening Batch 2013-16

Submitted to:Submitted by:Ms. Tanvi GuptaGarima KhuranaAssistant Professor03124501713

JAGANNATH INTERNATIONAL MANAGEMENT SCHOOL, KALKAJI

Students undertaking

I hereby certify that this is my original work and it has never been submitted elsewhere. The report has been completed in the specified period of time.

GARIMA KHURANA

ACKNOWLEDGEMENT

A lot of effort has gone into this project report. My thanks are due to many people with whom I have been closely associated. I would like to thank all those who have contributed in completing this project. First of all, I would like to send my sincere thanks to MR.ATUL AGGARWAL, my external mentor and MS.TANVI GUPTA my internal mentor for their helpful hand in the completion of my project. I would like to thank my entire beloved family & friends for providing me monetary as well as non monetary support, as and when required, without which this project would not have completed on time. Their trust and patience is now coming out in form of this project.

Certificate of Completion

This is to certify that Garima Khurana of BBA Vth semester has completed the SUMMER INTERNSHIP PROJECT REPORT under my guidance.

MS. TANVI GUPTA(Assistant Professor)

CONTENTS

DescriptionPage No.

Acknowledgement4

Certificate of Completion5

List of Figures7

Executive Summary8

Introduction To Topic10

Objectives20

Literature Review22

Company Profile36

Research Methodology52

Analysis & Interpretation56

Findings & Inferences67

Limitations68

Recommendations & Conclusion70

Appendices73

Bibliography75

LIST OF FIGURES

S.noFigures Page no.

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11.Figure 3.1066

Executive Summary

The project provides an overview of operations of OBC located in Connaught place, New Delhi. ORIENTAL BANK OF COMMERCE, The bank offers a wide range of banking products and services such as deposit accounts, loans, debit cards, credit cards, Insurance products, ATMs, Internet banking, Mobile Banking etc.Bankis afinancial intermediarythat creates credit by lending money to a borrower, thereby creating a correspondingdepositon the bank's balance sheet. Lending activities can be performed either directly or indirectly throughcapital markets.Banks offer many different channels to access their banking and other services: Automated teller machines Abranchis a retail location Call centre Mail: most banks accept cheque deposits via mail and use mail to communicate to their customers, e.g. by sending out statements Mobile bankingis a method of using one's mobile phone to conduct banking transactions Online bankingis a term used for performing multiple transactions, payments etc. over the Internet Relationship managers, mostly for private banking or business banking, often visiting customers at their homes or businesses Telephone bankingis a service which allows its customers to conduct transactions over the telephone withautomated attendantor when requested withtelephone operator

Bank generates revenue in a variety of different ways including interest, transaction fees and financial advice. The main method is via chargingintereston the capital it lends out to customers.The bank profits from the difference between the level of interest it pays for deposits and other sources of funds, and the level of interest it charges in its lending activities.

CHAPTER I INTRODUCTION TO THE TOPIC

INTRODUCTION TO THE TOPIC

Bank- Afinancialinstitution licensed as a receiver of deposits. There are two types ofbanks: commercial/retailbanksand investmentbanks.Financeis a field that deals with the allocation ofassetsandliabilitiesover time under conditions of certainty and uncertainty. Finance can also be defined as the science of money management. A key point in finance is thetime value of money, which states that purchasing power of one unit of currency, can vary over time. Finance aims to price assets based on their risk level and their expectedrate of return. Finance can be broken into three different sub-categories:public finance,corporate financeandpersonal finance.The management of large amounts of money, especially by governments or large companies.Acommercial bankis a type ofbankthat provides services such as accepting deposits, making business loans, and offering basic investment products.Commercial bank can also refer to a bank or a division of a bank that mostly deals with deposits and loans from corporations or large businesses, as opposed to individual members of the publicPrimary functionsCommercial banks perform various functions: Commercial banks accept various types of deposits from public especially from its clients, including saving account deposits, recurring account deposits, and fixed deposits. These deposits are payable after a certain time period Commercial banks provide loans and advances of various forms, including anoverdraftfacility, cash credit, bill discounting, money at call etc. They also give demand and demand and term loans to all types of clients against proper security. Credit creation is the most significant function of commercial banks. While sanctioning a loan to a customer, they do not provide cash to the borrower. Instead, they open a deposit account from which the borrower can withdraw. In other words, while sanctioning a loan, they automatically create deposits, known as a credit creation from commercial banks.Secondary functionsAlong with primary functions, commercial banks perform several secondary functions. The secondary functions of commercial banks can be divided into agency functions and utility functions.Agency functions include: To collect and clear cheques, dividends and interest warrant. To make payments of rent, insurance premium, etc. To deal in foreign exchange transactions. To purchase and sell securities. To act as trustee, attorney, correspondent and executor. To accept tax proceeds and tax returns.Utility functions include: To provide safety locker facility to customers. To provide money transfer facility. To issue traveller's cheque. To act as referees. To accept various bills for payment: phone bills, gas bills, water bills, etc. To provide merchant banking facility. To provide various cards: credit cards, debit cards, smart cards, etc.In finance, aloanis adebtprovided by one entity (organization or individual) to another entity at aninterest rate, and evidenced by anotewhich specifies, among other things, the principal amount, interest rate, and date of repayment. A loan entails the reallocation of the subjectasset for a period of time, between thelenderand theborrower.In a loan, the borrower initially receives orborrowsan amount ofmoney, called theprincipal, from the lender, and is obligated topay backorrepayan equal amount of money to the lender at a later time.The loan is generally provided at a cost, referred to asintereston thedebt, which provides an incentive for the lender to engage in the loan. In a legal loan, each of these obligations and restrictions is enforced bycontract, which can also place the borrower under additional restrictions known asloan covenants. Although this article focuses on monetary loans, in practice any material object might be lent.Acting as a provider of loans is one of the principal tasks forfinancial institutions.Introduction to Advance Product:Now a day not all the people have the capacity to fulfill their requirement by their own earning, thats why they need help from others. Forthis so many government & private sector bank provide them money to fulfilltheir requirement, thats call the Advance Product (loan product) ofthe bank. All the banks have so many different types of advance product as per the requirement of the people or customers. In Bhubaneswar also there are somany banks those provide loan to the people for different causes.

Types of Advance ProductHome LoanEducational LoanCar LoanProperty LoanLoan Against Shares\Debentures Personal LoanNow a day a large no. of people are taking loan form different banks. It helps people to fulfill their need and it reallyeasy to repayment the loan amount with alonger repayment period.

OBC Home Loans:PurposePurchase/ Construction of House/ Flat Purchase of a plot ofland for construction of House Extension/ repair/ renovation/ alteration of an existing House/ Flat Purchase of Furnishings and Consumer Durables as a part ofthe project cost. Takeover of an existingloan from otherBanks/ Housing Finance Companies.

Eligibility Minimum age18 years as on the date ofsanction

Maximum ageLimit for a Home Loan borrower is fixed at 70 years, i.e. the age by which the loan should be fully repaid. Availability of sufficient, regular and continuous source of income for servicing theloan repayment.

Loan Amount

To enhance loan eligibility you have option to add:- Income of your spouse/your son/ daughter living with you, provided theyhave a steady income and his/ her salary account ismaintained with OBC

CAR LOAN:PurposeYou can take finance for: A new car, jeep or Multi Utility Vehicles (MUVs)A used car / jeep (not more than 5years old). (Any make or model).Takeover of existing loan from otherBank/Financial institution

EligibilityTo avail an OBC Car Loan, you should be :Individual between the age of 21-65 years of age.A Permanent employee of State /Central Government, Public Sector Undertaking, Private company or a reputed establishment A Professionals or self-employed individual who isan income tax assesseeA Person engaged in agriculture and alliedactivities.-Net Annual Income Rs. 100,000/- and above.

Salient Features Loan AmountThere is no upper limitfor the amount of acar loan. A maximum loan amount of 2.5 times the net annual income can be sanctioned. If married, yourspouse's income could also be considered provided the spouse becomes a co-borrower in the loan. The loan amount includes finance for one-time road tax, registration and insurance. No ceiling on the loanamount for new cars. Loan amount for used car is subject to a maximum limit of Rs. 15 lacs.

Type of Loan1. TermLoan2. Overdraft a) For New vehicles onlyb) Minimum loan amount: Rs. 3 lacs.

Documents requiredYou would need to submit the following documents along with the completed application form ifyou are an existing OBC account holder:1. Statement of Bank account of the borrower for last 12 months.2.2 passport size photographs ofborrower(s).3. Signatureidentification from bankersof borrower(s).4. Acopyof passport /voters ID card/PAN card.5. Proof of residence.6. Latestsalary-slipshowingalldeductions7. I.T. Returns/Form16: 2years forsalaried employees and3 years forprofessional/self-employed/businessmen duly accepted bythe ITO wherever applicable tobe submitted.8. Proofof official address fornon-salaried individuals. If you are not anaccount holder with OBC youwould also need to furnish documents that establish your identity and give proof ofresidence.

RepaymentYou enjoy thelongest repayment period in theindustry with us.Repayment period:ForSalaried:Maximumof84monthsFor Self-employed& Professionals:Maximum 60monthsRepayment period for used vehicles: Up to 84months from the date of originalpurchase of the vehicle.

EDUCATIONLOAN:A term loan granted to Indian Nationals for pursuing higher education in Indiaor abroad where admission has been secured.

Eligible CoursesAll courses having employment prospects are eligible.Graduation courses/ Post graduation courses/ Professional coursesOther courses approved by UGC/Government/AICTE etc.

Expenses considered for loanFees payable tocollege/school/hostelExamination/Library/LaboratoryfeesPurchase ofBooks/Equipment/Instruments/UniformsCaution Deposit/Building Fund/Refundable Deposit (maximum 10% tuition fees for the entire course)Travel Expenses/Passage moneyfor studies abroadPurchase of computers considered necessary for completion ofcourse

AMOUNT OF LOAN-For studies in India, maximum Rs. 10 lacsStudies abroad, maximum Rs. 20 lacs

InterestRatesFor loansup toRs.4 lacs- 11.75 %p.a. FloatingFor loans above Rs. 4 lacs and upto Rs.7.50 lacs - 13.25 % FloatingFor loans above Rs.7.50 lacs -12.25% p.a. Floating

Processing FeesNo processing fee/ upfrontchargesDeposit of Rs. 5000/- for education loan for studies abroad which will beadjusted in the margin money

Repayment TenureRepayment will commence one year after completion of course or6 months after securing ajob, whichever isearlier. If studying in India maximum loan amount extends till 10 lac and the repayment period is 5-7 yrs If studying in abroad amount of loan cannot extend 20lac and repayment period is 5-7yrs

COMMON PRACTICES FOLLOWED BY OBC BRANCHES Display business hours. Render courteous services. Attend to all customers present in the bankinghall at the close of business hours. Provide separate 'Enquiry' or 'May I helpyou' counter at large branches. Offer nomination facility to all deposit accounts (i.e. accountopened in individual capacity) andall safe deposit locker hirers (i.e. individual hirers). Display interest rates for various deposit schemes from time to time. Notify change in interest rates on advances. Provide details of various deposit schemes/services of the Bank. Issue Demand Drafts, Pay Orders, etc. Display Time-Norms for various bankingtransactions. Pay interest for delayed credit of outstation cheques,as advised by Reserve Bankof India (RBI) from time to time. Accord immediate credit in respect of outstation andlocal cheques upto a specified limit subject tocertain conditions, as advised by RBI from time totime. Provide complaint/suggestion box in the branchpremises

OBJECTIVES

OBJECTIVE OF THE STUDY

To have an insight into the attitudes and behaviors of customers.

To find out the differences among perceived service and expected service.

To produce an executive service report to upgrade service characteristics

To understand various operations of bank.

To access the degree ofsatisfaction of the consumers who have availed the services.

LITERATURE REVIEW

Literature review

The Bank's operational objectives include promoting financial stability, guiding sound banking operations, maintaining the stability of the internal and external value of the currency and, within the scope of the above three objectives, fostering economic development.

A bank generally has 3 main departments: General banking Forex department Loans department

GENERAL BANKINGGeneral banking is the heart or we can say its the department without which functioning of bank is not possible. It basically deals with customers, this department is not a profit making department it only works for customer satisfaction It includes general deposits, withdrawal, transfers, rtgs, neft and fixed deposits-Deposits-'Bank Deposits' Money placed into a banking institution for safekeeping.Bank depositsare made todepositaccounts at a banking institution, such as savings accounts, checking accounts and money market accounts.Adeposit accountis asavings account,current accountor any other type ofbankaccountthat allowsmoneyto be deposited and withdrawn by the account holder. These transactions are recorded on the bank's books, and the resulting balance is recorded as a liabilityfor the bank and represents the amount owed by the bank to the customer. Some banks may charge a fee for this service, while others may pay the customer intereston the funds deposited.Transactional accountA deposit account held at a bank or other financial institution, for the purpose of securely and quickly providing frequent access to funds on demand, through a variety of different channels. Because money is available on demand these accounts are also referred to as demand accounts ordemand depositaccounts, except in the case ofNOW Accounts.Money market account A deposit account that pays interest, and for which short notice (or no notice) is required for withdrawals. In the United States, it is a style of instant access deposit subject to federal savings account regulations, such as a monthly transaction limit. Savings accountAccounts maintained by retail banks that payinterestbut can not be used directly as money (for example, by writing a cheque). Although not as convenient to use as checking accounts, these accounts let customers keep liquid assets while still earning a monetary return. Time depositA money deposit at a banking institution that cannot be withdrawn for a preset fixed 'term' or period of time. When the term is over it can be withdrawn or it can be rolled over for another term. Generally speaking, the longer the term the better the yield on the money.

Call depositA deposit account that allows for the withdrawal of funds without penalty, generally without notification to the bank. Often it bears a favourable interest rate, but also requires a minimum balance to take advantage of the benefits

Money transfergenerally refers to one of the following cashless modes of payment orpayment systems: Electronic funds transfer, an umbrella term mostly used for bank card-based payments Wire transfer, an international expedited bank-to-bank funds transfer Giro, also known as direct deposit Money order, transfer by postal cheque, money gram or others Remittance, a transfer of money by a foreign worker to his or her home country

Real-time gross settlementsystems (RTGS) are specialist funds transfer systems where transfer ofmoneyorsecurities takes place from onebankto another on a "real time" and on "gross" basis. Settlement in "real time" means payment transaction is not subjected to any waiting period. The transactions are settled as soon as they are processed. "Gross settlement" means the transaction is settled on one to one basis without bundling or netting with any other transaction. Once processed, payments are final and irrevocable.RTGS systems are typically used for high-value transactions that require immediateclearing. In some countries the RTGS systems may be the only way to get same day cleared funds and so may be used when payments need to be settled urgently. However, most regular payments would not use a RTGS system, but instead would use a nationalpayment systemor network that allows participants to batch and net payments.RTGS systems are usually operated by a country'scentral bankas it is seen as a critical infrastructure for a country's economy. Economists believe that an efficient national payment system reduces the cost of exchanginggoods and services, and is indispensable to the functioning of the interbank, money, and capital markets. A weak payment system may severely drag on the stability and developmental capacity of a national economy; its failures can result in inefficient use of financial resources, inequitable risk-sharing among agents, actual losses for participants, and loss of confidence in the financial system and in the very use of moneyNational Electronic Funds Transfer(NEFT) is one of the most prominent electronic fundsystems ofIndia. NEFT is a facility provided to bank customers to enable them to transfer funds easily and securely on a one-to-one basis. It is done via electronic messages. This is not on real-time basis likeRTGS(Real Time Gross Settlement). This is a "net" transfer facility which is executed in hourly batches resulting in a time lag. NEFT facilities are available in 30,000 bank branches all over the country and work on a batch mode.NEFT has gained popularity due to it saving on time and the ease with which the transactions can be concluded. This reflects from the fact that 42% of all electronic transactions in the 2008 financial year were NEFT transactions.Afixed deposit(FD) is afinancial instrumentprovided by banks which provides investors with a higher rate ofinterestthan a regularsavings account, until the given maturity date. It may or may not require the creation of a separate account. It is known as aterm depositortime depositinCanada, Australia,New Zealand, and theUS, and as abondin theUnited Kingdomand India. They are considered to be very safe investments. Term deposits inIndia andPakistanis used to denote a larger class of investments with varying levels ofliquidity. The defining criteria for a fixed deposit is that the money cannot be withdrawn from the FD as compared to arecurring depositor ademand 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 11 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 theDeposit Insurance and Credit Guarantee Corporation(DICGC).

LOANSIn finance, aloanis adebt provided by one entity (organization or individual) to another entity at aninterest rate, and evidenced by anotewhich specifies, among other things, the principal amount, interest rate, and date of repayment. A loan entails the reallocation of the subject asset(s) for a period of time, between thelenderand the borrower.In a loan, the borrower initially receives orborrowsan amount of money, called theprincipal, from the lender, and is obligated topay backorrepayan equal amount of money to the lender at a later time.The loan is generally provided at a cost, referred to asintereston thedebt, which provides an incentive for the lender to engage in the loan. In a legal loan, each of these obligations and restrictions is enforced bycontract, which can also place the borrower under additional restrictions known asloan covenants. Although this article focuses on monetary loans, in practice any material object might be lent.Acting as a provider of loans is one of the principal tasks forfinancial institutions. For other institutions, issuing ofdebtcontracts such asbondsis a typical source of funding.

TYPES OF LOANSSecuredAsecured loanis a loan in which the borrowerpledgessome asset (e.g. a car or property) ascollateral.Amortgage loanis a very common type of money, used by many individuals to purchase things. In this arrangement, the money is used to purchase the property. The financial institution, however, is given security alienon the title to the house until the mortgage is paid off in full. If the borrowerdefaultson the loan, the bank would have the legal right to repossess the house and sell it, to recover sums owing to it.In some instances, a loan taken out to purchase a new or used car may be secured by the car, in much the same way as a mortgage is secured by housing. The duration of the loan period is considerably shorter often corresponding to the useful life of the car. There are two types of auto loans, direct and indirect. A direct auto loan is where a bank gives the loan directly to a consumer. An indirect auto loan is where a car dealership acts as an intermediary between the bank or financial institution and the consumer.UnsecuredUnsecured loans are monetary loans that are not secured against the borrower's assets. These may be available from financial institutions under many different guises or marketing packages credit carddebt personal loans bankoverdrafts credit facilities or lines of credit corporate bonds(may be secured or unsecured) peer-to-peer lendingTheinterest ratesapplicable to these different forms may vary depending on the lender and the borrower. These may or may not be regulated by law. In the United Kingdom, when applied to individuals, these may come under the Consumer Credit Act 1974.Interest rates on unsecured loans are nearly always higher than for secured loans, because an unsecured lender's options for recourse against the borrower in the event of default are severely limited. An unsecured lender must sue the borrower, obtain a money judgment for breach of contract, and then pursue execution of the judgment against the borrower's unencumbered assets (that is, the ones not already pledged to secured lenders). In insolvency proceedings, secured lenders traditionally have priority over unsecured lenders when a court divides up the borrower's assets. Thus, a higher interest rate reflects the additional risk that in the event of insolvency, the debt may be uncollectible.DemandDemand loans are short term loansthat are typically in that they do not have fixed dates for repayment and carry a floating interest rate which varies according to theprime lending rate. They can be "called" for repayment by the lending institution at any time. Demand loans may be unsecured or secured.SubsidizedA subsidized loan is a loan on which the interest is reduced by an explicit or hiddensubsidy. In the context of college loans in theUnited States, it refers to a loan on which no interest is accrued while a student remains enrolled in education. ConcessionalA concessional loan, sometimes called a "soft loan", is granted on terms substantially more generous than market loans either through below-market interest rates, by grace periods or a combination of both.[3]Such loans may be made by foreign governments to developing countries or may be offered to employees of lending institutions as an employee benefit.

TARGET MARKETSPersonalLoans can also be subcategorized according to whether the debtor is an individual person (consumer) or a business. Common personal loans include mortgage loans, car loans, home equity lines of credit,credit cards,instalment loansandpayday loans. Thecredit scoreof the borrower is a major component in and underwriting and interest rates of these loans. The monthly payments of personal loans can be decreased by selecting longer payment terms, but overall interest paid increases as well. For car loans in the U.S., the average term was about 60 months in 2009.CommercialLoans to businesses are similar to the above, but also includecommercial mortgagesandcorporate bonds. Underwriting is not based upon credit score but rathercredit rating.

FOREXTheforeign exchange market (forex,FX, orcurrency market) is a globaldecentralizedmarket for the trading ofcurrencies. In terms of volume of trading, it is by far the largest market in the world.The main participants in this market are thelarger international banks. Financialaround the world function as anchors of trading between a wide range of multiple types of buyers and sellers around the clock, with the exception of weekends. The foreign exchange market determines the relative values of different currencies.The foreign exchange market works throughfinancial institutions, and it operates on several levels. Behind the scenes banks turn to a smaller number of financial firms known as dealers, who are actively involved in large quantities of foreign exchange trading. Most foreign exchange dealers are banks, so this behind-the-scenes market is sometimes called the interbank market, although a few insurance companies and other kinds of financial firms are involved. Trades between foreign exchange dealers can be very large, involving hundreds of millions of dollars. Because of the sovereignty issue when involving two currencies, forex has little (if any) supervisory entity regulating its actions.The foreign exchange market assists international trade and investments by enabling currency conversion. For example, it permits a business in theUnited Statesto import goods fromEuropean Unionmember states, especially Euro zonemembers, and payEuros, even though its income is inUnited States dollars. It also supports direct speculation and evaluation relative to the value of currencies, and thecarry trade, speculation based on the interest rate differential between two currencies.In a typical foreign exchange transaction, a party purchases some quantity of one currency by paying with some quantity of another currency.

Commercial companiesAn important part of the foreign exchange market comes from the financial activities of companies seeking foreign exchange to pay for goods or services. Commercial companies often trade fairly small amounts compared to those of banks or speculators, and their trades often have little short-term impact on market rates. Nevertheless, trade flows are an important factor in the long-term direction of a currency's exchange rate. Somemultinational corporations (MNCs) can have an unpredictable impact when very large positions are covered due to exposures that are not widely known by other market participants.Central banksNational central banks play an important role in the foreign exchange markets. They try to control themoney supply,inflation, and/orinterest ratesand often have official or unofficial target rates for their currencies. They can use their often substantial foreign exchange reserves to stabilize the market. Nevertheless, the effectiveness of central bank "stabilizing speculation" is doubtful because central banks do not go bankrupt if they make large losses, like other traders would, and there is no convincing evidence that they do make a profit trading.Foreign exchange fixingForeign exchange fixingis the daily monetary exchange rate fixed by the national bank of each country. The idea is that central banks use the fixing time and exchange rate to evaluate behaviour of their currency. Fixing exchange rates reflects the real value of equilibrium in the market. Banks, dealers and traders use fixing rates as a trend indicator.The mere expectation or rumour of a central bank foreign exchange intervention might be enough to stabilize a currency, but aggressive intervention might be used several times each year in countries with adirty floatcurrency regime. Central banks do not always achieve their objectives. The combined resources of the market can easily overwhelm any central bank.Several scenarios of this nature were seen in the 199293European Exchange Rate Mechanism collapse, and in more recent times in Asia.

Hedge funds as speculatorsAbout 70% to 90% of the foreign exchange transactions conducted are speculative. This means the person or institution that bought or sold the currency has no plan to actually take delivery of the currency in the end; rather, they were solely speculating on the movement of that particular currency. Since 1996,hedge fundshave gained a reputation for aggressive currency speculation. They control billions of dollars ofequityand may borrow billions more, and thus may overwhelm intervention by central banks to support almost any currency, if the economic fundamentals are in the hedge funds' favour.

Investment management firmsInvestment managementfirms (who typically manage large accounts on behalf of customers such as pension funds and endowments) use the foreign exchange market to facilitate transactions in foreign securities. For example, an investment manager bearing an international equity portfolio needs to purchase and sell several pairs of foreign currencies to pay for foreign securities purchases.Some investment management firms also have more speculative specialist currencyoperations, which manage clients' currency exposures with the aim of generating profits as well as limiting risk. While the number of this type of specialist firms is quite small, many have a large value ofassets under managementand, hence, can generate large trades.Retail foreign exchange tradersIndividual retail speculative traders constitute a growing segment of this market with the advent ofretail foreign exchange trading, both in size and importance. Currently, they participate indirectly throughbrokersor banks. Retail brokers, while largely controlled and regulated in the USA by theCommodity Futures Trading CommissionandNational Futures Association, have in the past been subjected to periodicforeign exchange fraud. Those NFA members that would traditionally be subject to minimum net capital requirements, FCMs and IBs, are subject to greater minimum net capital requirements if they deal in Forex. A number of the foreign exchange brokers operate from the UK underFinancial Services Authorityregulations where foreign exchange trading usingmarginis part of the wider over-the-counter derivatives trading industry that includes Contract for differencesandfinancial spread betting.There are two main types of retail FX brokers offering the opportunity for speculative currency trading:brokersanddealersormarket makers.Brokers serve as an agent of the customer in the broader FX market, by seeking the best price in the market for a retail order and dealing on behalf of the retail customer. They charge a commission or mark-up in addition to the price obtained in the market.Dealersormarket makers, by contrast, typically act as principal in the transaction versus the retail customer, and quote a price they are willing to deal at.Non-bank foreign exchange companiesNon-bankforeign exchange companiesoffer currency exchange and international payments to private individuals and companies. These are also known as foreign exchange brokers but are distinct in that they do not offer speculative trading but rather currency exchange with payments (i.e., there is usually a physical delivery of currency to a bank account).It is estimated that in the UK, 14% of currency transfers/payments are made via Foreign Exchange Companies.These companies' selling point is usually that they will offer better exchange rates or cheaper payments than the customer's bank. These companies differ from Money Transfer/Remittance Companies in that they generally offer higher-value services.Money transfer/remittance companies and bureaux de changeMoney transfer companies/remittance companies perform high-volume low-value transfers generally by economic migrants back to their home country. In 2007, theAite Groupestimated that there were $369 billion of remittances (an increase of 8% on the previous year). The four largest markets (India,China, Mexicoand thePhilippines) receive $95 billion. The largest and best known provider isWestern Unionwith 345,000 agents globally followed byUAE Exchange.Bureaux de changeor currency transfer companies provide low value foreign exchange services for travellers. These are typically located at airports and stations or at tourist locations and allow physical notes to be exchanged from one currency to another. They access the foreign exchange markets via banks or non bank foreign exchange companies.

CHAPTER II COMPANY PROFILE

INTRODUCTION

Oriental Bank of Commerce India was established in theyear 1943 on 19thFebruary in Lahore. Afterpartition, Oriental Bank of Commerce shifted its Registered Office from Lahore to Amritsar paying every rupee to its departing customers. Oriental Bank of Commerce was nationalized on 15th April in 1980. Then OBC bank had 307 branches with Rs. 282.61 crores as deposits and as advance Rs. 152.69.The National Institute of Bank Management (NIBM), rated OBC Bank as "Customer Friendly" Bank. Oriental Commercial Bank Limited is licensed by the CentralBank of Kenya as acommercial Bank to carryout banking activities under Banking Act Chapter 488 of the Kenyan laws. The Bank started itsoperations in the year 2002, withnew investments and Board ofDirectors, by taking over the assets and liabilities of the erstwhile Delphis Bank, from Central Bank ofKenya. It is a middle sized Bankand one of the financially robust Banks in, Kenya in terms of shareholders fundand liquidity. Oriental Commercial Bank Ltd has its Head Office at Finance House, Koinange Street- Nairobi. The Bank is managed by a professional team of management who are ably supervised by a Board ofDirectors consisting of eminent personalities of society having high level of integrity andprofessional skills in their respective areas of operations. We are committed to provide quality banking Service to our customers, however by strictly adhering to the RegulatoryGuidelines as applicable within Kenya and, internationally. Our emphasis always remains on carefully following Know your Customers and Anti MoneyLaundering Guidelines.

Corporate banking, Personal banking, Industrial finance, Agricultural finance, Financing of trade, Internationalbanking Oriental Bank Commerce has been ranked 38th amongst top 500 companies by The Economic Times. OBC hasearned9thpositionamongtop50trustedbrandsinIndia.OrientalBankCommerceIndiamaintainsrelationshipwithmorethan200leadinginternationalbanksworldwide. OBC India has Rupee Drawing Arrangements with 15 exchange companies in UAE and 1 in Singapore.

MANAGEMENT PROFILEName Designation

Sh.T.Y. Prabhu Chairman and Managing director

Sh. H RatnakaraHegde Executive Director

Sh. S.C Sinha Executive Director

V Vijay Sai Reddy Director

R S Maharishi Director

U K Khaitan Director

K B R Naidu Director

SumitaDawra Director

Sh. S.K Newley Director

Vijay Jagirdar Director

T Valliappan Director

C K Sabharwal Director

Figure 2.1

SCHEDULED COMMERCIAL BANKS IN INDIA (Competitors)

The commercial banking structure in India consists of:Scheduled Commercial Banks in IndiaUnscheduled Banks in India

Scheduled Banks in India constitute those banks which have been included in the Second Schedule of Reserve Bank of India (RBI) Act, 1934. RBIin turn includes only those banks inthis schedule which satisfy the criteria laid down vide section 42 (6) (a) of the Act. As on 30th June, 1999, there were 300 scheduled banks in India having a total network of 64,918 branches. The scheduled commercial banks inIndia comprise of State bank of Indiaand its associates (8), nationalizedbanks (19), foreign banks (45), private sector banks (32), co-operative banks and regional rural banks."Scheduled banks in India" means the State Bank of India constituted under the State Bank of India Act, 1955 a subsidiary bankas defined in the State Bankof India (Subsidiary Banks) Act, 1959 a corresponding new bank constituted under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 or under section 3 of theBanking Companies (Acquisition and Transfer of Undertakings) Act, 1980 or any other bank being a bank included in the Second Schedule to the Reserve Bank of India Act, 1934 but does not include a co-operative bank"."Non-scheduled bank in India" means a banking company as defined in clause (c) of section 5 of the Banking Regulation Act, 1949 which is not a scheduled bank".

The following are the Scheduled Banks in India (Public Sector):State Bank of IndiaState Bank of Bikaner and JaipurState Bank of HyderabadState Bank of IndoreState Bank of MysoreAndhra BankAllahabad BankBank of BarodaBank of IndiaBank of MaharashtraCanara BankCentral Bank of IndiaCorporation BankDena BankIndian Overseas BankIndian BankOriental Bank of CommercePunjab National BankPunjab and Sind BankSyndicate BankUnion Bank of IndiaUnited Bank of IndiaUCO BankVijaya Bank

The following are the Scheduled Banks in India (Private Sector):ING Vysya Bank LtdAxis Bank LtdIndusind Bank LtdICICI Bank LtdSouth Indian BankCenturion Bank Ltd HDFC Bank LtdIDBI Bank LtdYES BANK

The following are the Scheduled Foreign Banks in India:American Express Bank Ltd.ANZ Gridlays Bank Plc.Bank of America NT & SABank of Tokyo Ltd.BanqucNationale de ParisBarclays Bank PlcCiti Bank N.C.Deutsche Bank A.G.Hongkong and Shanghai Banking CorporationStandard Chartered Bank.The Chase Manhattan Bank Ltd.Dresdner Bank AG.

PRODUCTS AND SERVICES

Saving AccountsHow to Open an AccountDownload or obtainAccount Opening Form from the nearest branch, fill it upproperly and deposit the same with the branch of your choice along with the following:-1. Furnish proof of Residence (In the form of a copy of Ration Card/ Passport/Driving License/ Electricity Bill/ Telephone Bill/ Identity Card issued by any reputed institution. ORIGINALS be shown only at the time ofscrutiny ofpapers)/ Business address.2. Furnish 2 photographs of all the prospectiveaccount holder(s).3. Introduction about you from a person known to the bank preferably by an Account Holder of the Branch, whose account has run satisfactorily at least forthe past six months.4. Furnish PAN or declaration ofForm No. 60/61as the case may be. The minimum balance will be:-

Current Account How to Open an AccountDownload or obtainAccount Opening Form from the nearest branch, fill it upproperly and deposit the same with the branch of your choice along with the following:-1.Furnish proof of Residence (In the form of acopy of Ration Card/ Passport/Driving License/ Electricity Bill/ Telephone Bill/ Identity Card issued by any reputed institution. ORIGINALS be shown only at the time ofscrutiny of papers)/Business address.

2. Furnish 2 photographs of all the prospectiveaccount holder(s).3. Introduction about you from a person known to the bank preferably by an Accountholder of the Branch, whose account has run satisfactorily at least for the past six months.4. Furnish undertakings/ documents/ declarations as applicable. Please refer Current Account opening form for details.5. Furnish PAN or declaration ofForm No.60/61as the case may be.6. Minimum deposits.

Scheme Credit Schemes -Flexible Housing Loan, Car Finance, Personal Loan, Credit CardsSocial Banking -MahilaUdyamNidhi Scheme, Krishi Card, OBC Farmers Welfare TrustCorporate Banking -Gold Card scheme for exporters, EXIM financeBusiness Sector -OBC Karigar credit card, OBC KushalUdhami, OBC PragatiUdhami, OBC VikasUdhamiFlexi Fixed Deposit Scheme:-We are pleased to inform that Flexi Deposit Scheme for the benefit of our depositor customers has been approved by the Board PRODUCT & BENEFIT:Through reverse sweep facility, the amount lyingin Flexi Fixed Deposit shall be available tothe depositorwhenever there is a requirement offunds in his / her / their operative accounti.e. savings / current account. As such, whenever the depositor issues a cheque or uses ATM card and the available balance in his/her connected Savings/Current Account is not sufficient, Reverse Sweep will automatically withdraw the required amount from Flexi Fixed Deposit account andthe remaining amount in FFD will continueto earn the same rate ofinterest, as agreed upon in thecontract. In such event, theamount from flexi fixed deposit shall be transferred to his / her / their savings / current account by following the LIFO (last in first out) method. However, the funds to betransferred as a reverse sweep to Savings Bank/Current Accountwill also meet the requirement of maintaining minimum balance.

LOANSBanks in India with the way of development have become easy to apply in loan market. The following loans are given by almost all the banks in the country:Personal LoanCar Loan or Auto LoanLoan against SharesHome LoanEducation Loan or Student Loan in Personal Loan, one can get a sanctionedLoan amount between 25,000 to 10, 00,000 depending upon theprofile of person applying for the loan. SBI, ICICI, HDFC, HSBC are some of the leading banks which deals in Personal Loan. Almost all the banks have jumped into the market of car loan which is also sometimes termed as auto loan. It is one of the fast moving financial products of banks. Car loan / auto loan are sanctioned to the extent of 85%upon the ex-showroom price of thecar with some simple paper works and asmall amount of processing fee. Loan against shares is very easy to get because liquid guarantee is involvedin it. Home loan is the latest craze in thebanking sector with the development of the infrastructure. Now people are moving to township outside the city. More number of townships is coming up to meet the demand of 'housefor all'. The RBI has also liberalized the interest rates of home loan in order tomatch the repayment capability of even middle class people. Almost all banks are dealing in home loan.Again SBI, ICICI, HDFC, HSBC are leading. The educational loan, rather to be termed as studentloan, is a good banking product for the mass. Students with certain academic brilliance, studying at recognized colleges/universities in India and abroad are generally given education loan / student loan so as to meet the expenses on tuition fee/ maintenance cost/books and other equipment.MONEY TRANSFERBeside lending and depositing money, banks also carry money from one corner of the globe to another. This act of banks is known as transfer of money. This activity is termed as remittance business. Banks generally issue Demand Drafts, Banker's Cheques, Money Orders or other such instruments for transferring the money. This is a type of Telegraphic Transfer or Tele Cash Orders. It has been only acouple of years that banks havejumped into the money transfer businesses in India. Economists say that the market of money transfer will further grow at a cumulative 12.1% average growth rate.

FUTURE OF BANKING IN INDIAA healthy banking system is essential for any economy striving to achieve good growthand yet remain stable in an increasingly global business environment. TheIndian banking system has witnessed a series of reforms in the past, like deregulation of interest rates, dilution of government stake in PSBs, and increasedparticipation of private sector banks. It has also undergone rapid changes, reflecting a number of underlying developments. This trend has created newcompetitive threats as well as new opportunities. This paper aims to foresee major future banking trends, based onthese past and current movements in themarket. Given the competitive market, banking will (and to a great extent already has) become a process of choice and convenience. The future ofbanking would be in terms ofintegration. This is already becoming a reality with new-age banks such as YES Bank, and others too adopting a single-PIN. Geography will no longer be an inhibitor. Technology will prove to bethe differentiator in the short-term but the dynamic environment will soon lead to its saturation and what will ultimately bethe key to success will be abetter relationship management.

OVERVIEWIf one were to say that thefuture of banking in India is bright, it would be a gross understatement. With the growing competition and convergenceof services, the customers stand onlyto benefit more to say the least. At the same time, emergenceof a multitude of complex financial instruments is foreseen in thenearfuture (the trend is visible in the current scenario too) whichis bound to confuse the customer more than everunless she spends hours (maybe days) to understand the same. Hence, I seea growing trend towards the importance of relationship managers. The success (or failure) of anybank would dependnot only on tapping the untapped customer base (from other departments of the same bank, customers of related similarinstitutions or those of the competitors) but also on the effectiveness in retaining theexisting base. India has witness to a sea change in the way banking is done in the past more than two decades. Since 1991,the Reserve Bank of India (RBI) took steps toreform the Indian banking system at a measuredpace so that growth could be achievedwithout exposure to any macro-environment andsystemic risks. Some of these initiatives were deregulation of interest rates, dilution of the government stake inpublic sector banks, guidelines being issued for risk management, asset classification, and provisioning. Technologyhas made tremendous impact in banking. Anywhere banking and Anytime banking have become a reality. The financial sector now operates in a morecompetitive environment than before and intermediates relatively large volume of international financial flows. In the wakeof greater financial deregulation and global financial integration, the biggest challenge before theregulators is of avoiding instability in the financial system.

RISK MANAGEMENTThe future of banking will undoubtedly rest on risk management dynamics. Only thosebanks that have efficient risk management system will survive in the market in the longrun. The effective management ofcredit risk is a critical component of comprehensive risk managementessential for long-term success of abanking institution. Although capital serves the purpose of meeting unexpected losses, capital is not a substitute for inadequate decontrol or risk management systems. Coming years will witness banks striving to create soundinternal control or risk management processes. The banks with proper riskmanagement systems would not only gain competitive advantage by way of lower regulatory capital charge,but would also add value to the shareholders and other stakeholders by properly pricing their services, adequate provisioning and maintaining arobust financial structure.The future belongs to biggerbanks alone, as well as to thosewhich have minimized their risks considerably.

ACHIEVEMENTS

Oriental bank of commerce announced its Q1FY2010 results on 29 July 2009, delivering 62% growth in net profits to Rs832 crore (Rs512cr), substantially ahead of expectations on account oflarge treasury gains, apart from healthy operating performance.

While the banks deposit growth was reasonably robust at 4.4% sequentially and 26.5%, unlike the peers its growth in advancesalso remained strong at 38%.

In spite of being at the forefront, the bank posted a healthy growth in Net Interest Income (NII) of 29%.

Other Income surged 113%, driven by strong treasury gains of Rs355 crore during the quarter in line with industry trends, even as Fee income was also robust at 45%, on the backof strong balance sheet growth.

Operatingexpenseswerehigherthanexpectedonaccount ofRs150croreofprovisionsforimminent wage hikes.

Gross and Net NPA ratios remained stable sequentially at 1.8% and 0.2%, with the bank not adopting the guidelines of treating floating provisions as part of tier 2 capital instead of adjusting against NPAs on express permission from the RBI.

AWARDS AND DISTINCTIONS

Ranked among top 50 companies by the leading financial daily, Economic Times.

Ranked as 323rd biggest bank in the world by Bankers Almanac, London.

Earned 9th place amongIndia's Most Trusted top 50 service brands in Economic Times.

Included in the top 1000 banks in the world according to The Banker, London.

COMPANYS MISSION AND VISION

Vision & Mission StatementOur VisionTo be a soundall India, customer centric, efficient retail bank with contemporary size, technology and human capital; endeavoring to enrich lives across all sections ofsociety; and committed to upholding the highest standards of corporate governance.

Our MissionTo provide the finest banking services by upgrading human capital and infusing advanced technology, thereby achieving total customer satisfaction; and being reckoned as the Best Bankin the Industry on all efficiency parameters.To enhance shareholders wealth by ensuring sound growth of business and make valuable contributions to national economicgrowth.

VALUES AND ETHICSBonding and IntegrityEthical conductPeriodic disclosureConfidentiality and fair dealingCompliance with rules and regulations

CHAPTER III

RESEARCH METHODOLOGY

WHAT IS RESEARCH?

"In the broadest sense of the word, the definition of research includes any gathering of data, information and facts for the advancement of knowledge."

Steps in conducting researchResearch is often conducted using the hourglass model structure of research.The hourglass model starts with a broad spectrum for research, focusing in on the required information through the method of the project (like the neck of the hourglass), then expands the research in the form of discussion and results. The major steps in conducting research are: Identification of research problem Literature review Specifying the purpose of research Determine specific research questions or hypotheses Data collection Analysing and interpreting the data Reporting and evaluating research Communicating the research findings and, possibly, recommendations

PRIMARY DATAData observed or collected directly from first-hand experience is known as primary data. Primary data are those collected by the investigator himself for the first time and thus they are original in character, they are collected for a particular purpose. A well-structured questionnaire was personally administrated to the selected sample to collect the primary data.

SECONDARY DATA

A secondary data is that data that is required to conduct the study and can be obtained from books, journals, magazines, records etc. Secondary data is data taken by the researcher from secondary sources, internal or external. Secondary data is collected from following sources: - 1) Magazines and journals 2) Company websites.3) Internet4) Books

SCOPE OF THE STUDYThis study is limited to the consumers with in New Delhi city. The study will be able to reveal the preferences,needs,satisfaction ofthecustomersregardingthebankingservices,Italsohelpbankstoknow whether the existing products or services they areoffering are really satisfying the customers needs.

SAMPLE SIZESample size denotes the number ofelements selected for the study. For the presentstudy, 100 respondents were selected at random. All the 100 respondents were the customers of different branches ofOriental Bank ofCommerce

SAMPLING METHODA sample is a representative part of the population. In sampling technique, information is collected only from a representative part of the universe and the conclusions are drawn on that basis for the entire universe. A convenience sampling techniquewas used to collect data from the respondents.

METHOD OF DATA COLLECTIONTo know the response, questionnaire method was used. It has been designed as a primary research instrument. Questionnaires were distributed to respondents and they were asked to answer the questions given in the questionnaire .The questionnaires were used as an instrumentation technique, because it is an important method of data collection. The success of the questionnaire method in collecting the information depends largely onproperdrafting.SointhepresentstudyquestionswerearrangedandInterconnectedlogically.The structured questionnaire will reduce both interviewers and interpreters bias. Further, coding and analysis was done for each questions response to reach into findings, suggestions and finally to the conclusion about the topic.

TYPES OF DATAEvery decision poses unique needs for information, and relevant strategies can be developed based on the information gathered through research. Research is the systematic objective and exhaustive search for and study of facts relevant to the problem Research design means the framework of study that leads to the collection and analysis of data. It is a conceptual structure with in which research is conducted. It facilitates smooth sailing of various research operations to make the research as effective aspossible.

CHAPTER IIIANALYSIS AND FINDINGS

Analysis & Interpretation

Q1 PERCENTAGE OF PEOPLE HAVING BANK ACCOUNT

Bank account Percentage

yes97%

no3%

total100%

Figure 3.1Analysis:-From the above table and graph it can be seen that only 3% of the people having no bankaccount while the other 97%have theirs in different banks. This data is presentedin both the table and graphical presentation.

Interpretation:So we can conclude most of the people have accounts in various banks for having different reasonslike , to have safety ofmoney, to transact easily with others etc.

Q2 Transactions of different banks in the market

BANKSPERCENTAGE

SBI30

OBC25

AXIS15

ICICI18

PNB10

Others2

Figure 3.2

Analysis:-From the former table and graphs we can see people have accounts like in SBI 30% , in OBC 25%,in PNB10%, in AXIS 15%,inICICI 18% and in other banks there are only 2% accounts among all the respondents.

Interpretation:It is concluded here that OBC have its popularity of having a large no. of accounts in the studied area for its best service in all sectors.

Q3 SHARE OF DIFFERENT TYPES OF ACCOUNTS

SL. No.Nature of accounts% of respondents

1.Savings A/Cs75%

2.Current A/Cs9%

3.Fixed deposits4%

4.loans7%

5.others5%

total100%

Figure 3.3Analysis:Above table shows that 75% respondents have Saving A/Cs, and 9% have Current A/Cs and rest ofthe respondents have 16% share of other A/Cs in total (which includes fixed deposits, loans, and otherproducts)

Interpretation:This means most of the respondents are having Saving A/Cs which means the bank deposits are enriching as Saving A/Cs share is most.

Q4 TABLE SHOWING MOTIVE BEHIND SELECTING OBC

SL. NO.ATTRIBUTEPERCENTAGE

1Brand name56

2Customer service30

3Interest rate12

4others2

Figure 3.4Analysis:This table show the strengths and weaknesses of thebrand, and what arethe important criteria orfactors on which decision-making is done. Fromthis table we can infer that consumers give moreimportance for Brand name, secondly they prefer satisfaction, and then returns oninvestment.

Interpretation:This purely shows that people are now looking forward for better customer service in addition to the brand namein which they are investing andthe returns they are getting.

Q5 THE CUSTOMERS SATISFACTION WITH INTEREST RATE OF OBC

Satisfied Percentage

YES82

NO18

Figure 3.5Analysis: The customers are satisfied largely on the interest rate of OBC compare to any other banksi.e.82% which is elaborated in the above table and graphs.

Interpretation:So we can concludethat the customers are satisfied with the interest rate of OBC.

Q6 HOW THE CUSTOMERS SATISFIED WITH INTEREST RATES OF BANKS

SL.NO.NAME OF BANKPERCENTAGE

1SBI36

2PNB15

3OBC26

4ICICI9

5OTHERS14

Figure 3.6Analysis:The above tableshows that 36% of the respondents prefer OBC firstly. Thereafterthey prefer other banks like SBI, PNB etc.Likewise SBI-26%, PNB-15%, ICICI-9% and otherbanks 14%.

Interpretation:From these all it can beconcluded that a major partof the customers are satisfied with the interest rate of OBC.

Q7 CONSUMERS WILLINGNESS TO SHIFT THEIR A/C s TO OTHER BANK

SL.NO.RESPONSESPERCENTAGE

1.Shift8

2.Doesnt Shift 92

Figure 3.7Analysis:From this table it can be noted that the majority of consumers (92%) doesnt like to shift their A/Cs to other banks.

Interpretation:The reason can beincreasing customer satisfaction and quality services offeredby the bank.

Q8 SATISFACTION OF RESPONDENTS WITH SERVICES OFFERED BY OBC BRANCH

SL.NO.RESPONSESPERCENTAGE

1.Satisfied89

2.Not satisfied11

Figure 3.8

Analysis:From the above table it could be inferred that 89% of the consumers are satisfied with the service and quality of products of their bank. Only 11% of consumers are notsatisfied.

Interpretation:Most of the respondents are satisfied with the service offered by Oriental Bank of Commerce Presently the bank offers varieties of services and the customers are getting a good rate of return from their deposits. Customers are getting good service from the bank.

Q9 RATINGS OF THE SERVICES OFFERED BY THE BANK

SL.NO.RATINGSPERCENTAGE

1.EXCELLENT9

2.VERY GOOD11

3.GOOD70

4.AVERAGE6

5.POOR4

Figure 3.9 Analysis:From this table it could be inferred that70% of the consumers have ratedservice offered as good, 11% of them have rated them as very good, and 09% of them have rated as excellent while only 4% have rated as poor,.

Interpretation:Service offered by the bank is improving day by day. Returns consumers are getting are also attractive. Majority of the customers rates good, very good and excellent because of the customer service offered by the bank. Banks are providing agood service to the customers due to increased competition in themarket. This may be the reason formore satisfaction.

Q10 Which product of OBC isbeneficiary to Customer?

PRODUCTPERCENTAGE

Savings A/c (SA)47%

Current A/c (CA)23%

Fixed deposit (FD)17%

Loan A/c (LA)8%

Insurance (INS)5%

TOTAL100%

Figure 3.10Analysis:-It is seen that more customer havesavings account like 47% in OBC.Likewise there are 17% current account , 23% fixed deposit ,8% loan and only 5% insurance.

Interpretation:So it is clear that there aremore savings account in OBC ascompare to otheraccounts and services.

Findings and Inferences

1. Most of the respondents are having Saving A/Cs.

2. Most of the respondents are satisfied with the serviceoffered by Oriental Bank of Commerce.

3. Majority of the customers rates good, very good andexcellent because of the customer service offered by the bank

4. People are now looking forward for better customer service in addition to the brand name in which they are investing and thereturns they are getting.

5. The reason can be increasing customer satisfaction and quality services offered by the bank.

6. The customers are satisfied with the interest rate of OBC.

LIMITATIONS

LIMITATIONS OFTHESTUDY

Although the study was carried out withextreme enthusiasm and careful planning there are severallimitations, which handicapped the research

1. TimeConstraints:The time stipulated for the project to be completed is less and thus there are chances that some information might have been left out, however due care is taken to include all the relevant information needed.

2. Sample size:Duetotimeconstraintsthesamplesizewasrelativelysmallandwoulddefinitelyhavebeenmorerepresentative if I had collected information from more respondents.

3. Accuracy:It is difficult to know if all the respondents gave accurate information; some respondents tend to give misleading information.4.It was difficult to find respondents as they were busy in their schedule, and collection of data was very difficult. Therefore, the study had to be carried out based on the availability of respondents.

RECOMMENDATIONS

With regard tobankingproducts andservices, consumers respond atdifferent rates, dependingon the consumers characteristics.Hence OBC should try to bring their new product and services to the attention of potential early adopters.

Due to the intense competition in the financial market, OBC should adopt better strategies to attract more customers.

Returnoninvestmentcompanyreputationandpremiumoutflowaremostpreferred attributes that are expected by the respondents. Hence greater focus should be given to these attributes.

OBC should adopt effective promotional strategies to increase the awareness level among the consumers.

OBC should ask for their consumer feedback to know whether the consumers are really satisfied or dissatisfied with the service and product of the bank. If they are dissatisfied, then the reasons for dissatisfaction should be foundout and should be correctedin future.

The OBC brand name has earned a lot of goodwill and enjoys high brand equity.As there is intense competition, OBC should work hard to maintain its position and offerbetter service and products to consumers.

The bank should try to increase the Brand image through performance and service then, only the customers will be satisfied.

Majority of the people find banking important in their life, so OBC should employ the strategies to convert the want in to need which will enrich their business

CONCLUSION

This is a project that is based on the study done over Oriental bank to know its management and methods of doing banking work.

This study helped me to get an overview of various processes of OBC.

It made me aware about the various policies and schemes which the company has adopted.

The project has helped me in studying satisfaction about product and services offered to customers.

APPENDICES

Questionnaire

Customer Feedback Form

NameofCustomer.Address..A/C No......Age.SexContact no..

1. Do you haveany bankaccount? Yes No

2. If yes, than in which bank you have done your transaction? SBI OBC PNB AXIS ICICI Others____________

3. Which type of account you have? SAVINGA/C CURRENTA/C FIXEDDEPOSITA/C

4. Whyyou choose OBC? Customerservice Brandname interest others

5. Doyousatisfiedwiththeinterestprovidedbyyourbank? YES NO

6. Whichbankprovidedbetter interestrate? SBI PNB OBC ICICI Other

7.Are youinterestedto siftthe account toother bank? Shift Doesntshift

8.AreyousatisfiedwiththeserviceprovidedbyOBC? Satisfied Notsatisfied

9.Howyouratetheservices provided byOBC? Excellent Verygood Good Average Poor

10.WhichproductofOBCwouldyoulike? SA CA LA Insurance Other

BIBLIOGRAPHY

www.obcindia.co.in

wikipedia.org/wiki/Financial institution

ORIENTAL BANK MANUAL

http://www.investopedia.com

http://www.indiastat.com/banksandfinancialinstitutions

BROCHURES

Financial management by PANDEY I.M

Management accounting by GOEL D.K55