36930974 Utkarsh Project Report

8/6/2019 36930974 Utkarsh Project Report

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EXECUTIVE SUMMARY

IDBI Bank is one of India's leading public sector banks and 4th largest Bank in overall

ratings. RBI categorized IDBI as an "other public sector bank". It was established in1964 by an Act of Parliament to provide credit and other facilities for the

development of the fledgling Indian industry. It is currently the tenth largest

development bank in the world in terms of reach with 1162 ATMs, 710 branches and

474 centers. In 1976, the banks ownership was transferred to the Government of

India. Although Government shareholding in the Bank came down below 100%

following IDBIs public issue in July 1995, the former continues to be the major

shareholder i.e. 52.3%. During the four decades of its existence, IDBI has been

instrumental not only in establishing a well-developed, diversified and efficient

industrial and institutional structure but also adding a qualitative dimension to the

process of industrial development in the country. IDBI has played a pioneering role in

fulfilling its mission of promoting industrial growth through financing of medium and

long-term projects, in consonance with national plans and priorities.

Over the years, IDBI has enlarged its basket of products and services, covering almost

the entire spectrum of industrial activities, including manufacturing and services. IDBI

provides financial assistance, both in rupee and foreign currencies, for green-field

projects as also for expansion, modernization and diversification purposes. It was

accorded the status of principal financial institution for coordinating the working of

institutions at national and state levels engaged in financing, promoting, and

developing industries.

IDBI has provided assistance to development related projects and contributed to

building up substantial capacities in all major industries in India. IDBI has directly or

indirectly assisted all companies that are presently reckoned as major corporate in

the country. It has played a dominant role in balanced industrial development.

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IDBI has engineered the development of capital market through helping in setting up

of the Securities Exchange Board Of India (SEBI), National Stock Exchange Of India

Limited (NSE), Credit Analysis And Research Limited (CARE), Stock Holding

Corporation Of India Limited (SHCIL), Investor Services Of India Limited (ISIL),

National Securities Depository Limited (NSDL), and Clearing Corporation Of India

Limited (CCIL).

In April 1990, IDBI set up the Small Industries Development Bank Of India (SIDBI) as

wholly owned subsidiary to cater to specific needs of the small-scale sector.

In 1992, IDBI accessed the domestic retail debt market for the first time by issuing

innovative bonds known as the deep discount bonds. These new bonds became highly

popular with the Indian investor.

In 1994, IDBI Act was amended to permit public ownership up to 49 per cent. In July

1995, it raised over Rs 20 billion in its first Initial Public Offer (IPO) of equity, thereby

reducing the government stake to 72.14 per cent. In June 2000, a part of government

shareholding was converted to preference capital. This capital was redeemed in

March 2001, which led to a reduction in government stake. The government stakecurrently is 51 per cent.

In August 2000, IDBI became the first all India financial institution to obtain ISO 9002:

1994 certification for its treasury operations. It also became the first organization in

the Indian financial sector to obtain ISO 9001:2000 certifications for its FOREX

services.

In 2006, IDBI Bank acquired United Western Bank in a rescue. Annasaheb Chirmule,

who worked for the cause of Swadeshi movement, founded Satara Swadeshi

Commercial Bank in 1907, and some three decades later founded United Western

Bank. The bank was incorporated in 1936, and commenced operations the next year,

with its head office in Satara, Maharashtra. It became a Scheduled Bank in 1951. In

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1956 it merged with Union Bank of Kolhapur, and in 1961 with Satara Swadeshi

Commercial Bank. At the time of the merger with IDBI, United Western had some 230

branches spread over 47 districts in 9 states, controlled by five Zonal Offices at

Mumbai, Pune, Kolhapur, Jalgaon and Nagpur.

VISION STATEMENT

"To be trusted partner in progress by leveraging quality human capital and setting

global standards of excellence to build the most valued financial conglomerate"

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TABLE OF CONTENT

1. INTRODUCTION.8

NON-RESIDENT INDIAN (NRI)..8

OVERSEAS CORPORATE BODIES (OCBS).9 NRI BUSINESS IN INDIA.9

DETAILS OF PRIVATE TRANSFERS TO INDIA..10

FACILITIES AVAILABLE TO NRIs/OCBs10

TYPES OF BANK ACCOUNTS FOR NRI's..11

PROCEDURE FOR OPENING A NON-RESIDENT (NRI) ACCOUNTS IN INDIA13

MAJOR BANKS OFFERING DIFFERENT TYPES OF ACCOUNTS TO NRIS.14

ECONOMIC IMPACT OF REMITTANCES14 INTEREST RATES15

FOREIGN EXCHANGE DEPARTMENT OF RBI..17

BORROWINGS FROM NRIs/PIOs BY INDIAN NATIONALS19

PORTFOLIO INVESTMENT SCHEME (PIS)20

2. RESEARCH OBJECTIVES.21

3. RESEARCH METHODOLOGY22

4. ANALYSIS.23

STATE BANK OF INDIA23

HDFC BANK26

ICICI BANK.29

CORPORATION BANK.32

AXIS BANK.34

IDBI BANK37

5. FINDINGS.41

6. LIMITATIONS.43

7. RECOMMENDATIONS..44

8. REFERENCES.46

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1. INTRODUCTION

Non-Resident Indians (NRIs) are basically the persons who are having some kind of

origin from India and presently staying outside the country. They can be seen acrossthe globe in a large scale and most of them are businessman or working for many

private as well as public sector organizations. It is understood that there are over 2.5

crores of NRIs/PIOs spread across the world in over 136 countries. NRIs are mostly

present in large numbers in big countries like Australia, USA, UK, Germany,

Switzerland, France etc. where there is a great scope for personal growth and career.

NRIs generally keep some kind of connections with their parent country and this

connection is basically atleast in the form of banking relationship where they remit

their foreign earnings through these financial institutions. The NRI Services desks in

the bank branches basically provide banking services to NRIs/ or there are many NRI

specific branches that cater to the needs of NRIs.

NRI Banking in India is maintained by banks that hold official Authorized Dealers

license from the Reserve Bank of India. The financial budget for 2007-08 extends NRI

accounts to Regional Rural Banks (RRBs) as well.

Non-Resident Indian (NRI):-

The word NRI is used in various senses in different fields. In general, A Non-Resident

Indian (NRI) is an Indian citizen who has migrated to another country, a person of

Indian origin who is born outside India, or a person of Indian origin who resides

permanently outside India. Other terms with the same meaning are overseas Indian

and expatriate Indian.

A Person of Indian Origin (PIO) is usually a person of Indian origin who is not a citizen

of India. Such people are issued PIO Cards, which exempt them from many restrictions

such as visa and work permit requirements, along with certain other economic

limitations.

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For the purposes of availing of the facilities of opening and maintenance of bank

accounts and investments in shares/securities in India, Person of Indian Origin means

a citizen of any country other than Pakistan or Bangladesh, if

1. he at any time, held an Indian passport; or

2. he or either of his parents or any of his grandparents was a citizen of India by

virtue of the constitution of India or Citizenship Act, 1955; or

3. the person is a spouse of an Indian citizen or a person referred to in clause (1)

or (2) above

Overseas Corporate Bodies (OCBs):-

Overseas Corporate Bodies (OCBs) are bodies predominantly owned by individuals of

Indian nationality or origin resident outside India and include overseas companies,

partnership firms, societies and other corporate bodies which are owned, directly or

indirectly, to the extent of at least 60% by individuals of Indian nationality or origin

resident outside India as also overseas trusts in which at least 60% of the beneficial

interest is irrevocably held by such persons. Such ownership interest should be

actually held by them and not in the capacity as nominees.

NRI Business in India:-

The confidence of non-resident Indians in the Indian economy is reviving again. After

an outflow of $2 billion in 2008-09, NRI deposits have increased by nearly $3.7 billion

in the first four months of 2009-10, despite the volatile movements in the interest

rates.

According to the RBI, total NRI deposits had declined to $41.55 billion by end of March

2009 from $43.60 billion in April 2008. However, NRI fund inflows increased since

April 2009 and touched $45.33 billion till July 2009, as per the RBI's September

bulletin. Most of the NRIs deposits come through the Foreign Currency Non-resident

(FCNR) account and Non-resident External Rupee Accounts. As of July 2009, FCNR

deposits accounts for $14.16 billion ($13.21 billion in March 2009) and $25.22 billion

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($23.57 billion in March) in the NR(E)RA. Deposits under the NRO (Non-resident

Ordinary) account were also higher at $5.9 billion ($4.7 billion). As interest rates on

both FCNR and NR(E)RA are linked to the Libor (London Inter Bank Rate), Indian banks

find NRI deposits quite cheap when compared to local deposits. Most of the NRI

deposits which are flowing to South-based banks come from the Middle East.

Details of Private Transfers to India:-

(in USD Billion)

Year

Total Private

Transfer

Inward

Remittance for

Family

Maintenance

Local Withdrawals/

Redemption of NRIDeposits

2006-07 30.8 14.7 13.22007-08 43.5 21.9 18.92008-09 46.4 23.1 20.6

In USD

(B)2001 2003 2005 2007 2008

Net

Private

Transfer

12.8 16.3 20.5 27.9 40.7

Net NRI

Deposits2.3 2.9 -0.9 4.3 0.1

Source:-RBI Monthly Bulletin May 2010, ARTICLE- Developments in Indias Balance of Payments duringthe Third Quarter (October-December 2009) of 2009-10 and April-December 2009

FACILITIES AVAILABLE TO NRIS/OCBS:-

Maintenance of bank accounts in India.

Investment in securities/shares of, and deposits with Indian firms/ companies.

Investments in immovable properties in India.

TYPES OF BANK ACCOUNTS FOR NRI'S :-

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Non-Resident (External) Rupee Accounts (NRE Accounts):-

NRIs, PIOs, OCBs are eligible to open NRE Accounts. These are rupee denominated

accounts. Accounts can be in the form of savings, current, recurring or fixed deposit

accounts. Accounts can be opened by remittance of funds in free foreign exchange.

Foreign exchange brought in legally, repatriable incomes of the account holder, etc.

can be credited to the account. Joint operation with other NRIs/PIOs is permitted.

Power of attorney can be granted to residents for operation of accounts. The balance

in the account is freely repatriable. Interest lying to the credit of NRE accounts is

exempt from tax in the hands of the NRI.

Ordinary Non-Resident Rupee Accounts (NRO Accounts):-

These are Rupee denominated non- repatriable accounts and can be in the form of

savings, current, recurring or fixed deposits. These accounts can be opened jointly

with residents in India. When an Indian National/PIO resident in India leaves for taking

up employment, etc. outside the country, his bank account in India gets designated as

NRO account. Interest income, from NRO accounts is taxable. Interest income, net of

taxes is repatriable.

Foreign Currency Accounts:-

Foreign Currency (Non Resident) Accounts (Banks) (FCNR (B) Accounts) NRIs/PIOs are

permitted to open such accounts in US Dollars, Sterling Pounds, Japanese Yen,

Australian Dollars, Canadian Dollars and Euro. The account may be opened only in the

form of term deposit for any of the five maturity periods viz; (i) one year and above

but less than two years (ii) two years and above but less than three years and (iii)

three years and above but less than four years (iv) four years and above but less than

five years (v) five years only.Interest income is tax free in the hands of NRI until hemaintains a non-resident status or a resident but not ordinarily resident status under

the Indian tax laws.FCNR (B) accounts can also be utilized for local disbursements

including payment for exports from India, repatriation of funds abroad and for making

investments in India, as per foreign investment guidelines.

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Resident Foreign currency (RFC):-

Citizen of India or persons of Indian origin who have been outside India for a

continuous period of not less than one year and have become resident in India on or

after 18/4/92 are eligible to maintain RFC accounts. This can be held singly or jointly

in the names of eligible persons. Accounts can be maintained in the form of savings

bank, current accounts, and term deposits. Cheque book & loans / overdrafts facility

is not permitted on RFC accounts. It is maintained in designated currency viz. USD,

GBP, EURO, JPY. The interest on this is payable in the designated currency.

Nomination facility is also available. Nominees can be residents or non-residents.

The entire amount of foreign exchange brought to India at the time of return to India

for permanent settlement as well as balances standing to the credit of NRE and FCNR

accounts at the time of return, income received on overseas assets in the form of

interest, dividends, sale proceeds of assets, pensions received from abroad etc. is

credited to RFC accounts. Funds in RFC accounts can be remitted abroad for any bona

fide purpose of the account holder or dependants. It can be used for making local

payments also.

The following accounts were applicable to NRIs prior to April 2002 which are presently

discontinued as per RBI.

Non-resident (Non-reportable) Rupee Deposit Accounts (NRNR Accounts):-

This account could be opened by NRIs, PIOs and OCBs by transfer of freely convertible

foreign currency funds from abroad, or from NRE/FCNR accounts. Deposits can be

held jointly with a resident and can be for period from 6 months to 3 years, and can

be renewed further. The principal is non-repatriable; interest can be repatriated.

There is no income tax on the interest.

Non-Resident (Special) Rupee Accounts:-

NRIs/PIOs have the facility to maintain bank accounts and undertake financial

transactions in India subject to certain exchange control regulations. In order to

simplify the procedures and to provide greater freedom to NRIs/PIOs for putting9


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through financial transactions in India, NRIs and PIOs were permitted to open bank

accounts in India, which would be at par with rupee accounts, maintained by

residents. They could open Non-Resident (Special) Rupee Accounts with banks in India

which had the same facilities and restrictions as are applicable to rupee accounts

maintained in India by residents relating to repatriation of funds held in these

accounts and/or income/interest earned on them. The scheme provided that the

procedure for opening such accounts would be same as that of domestic accounts of

resident individuals.

Procedure for Opening a Non-Resident (NRI) Accounts in India:-

Many banks provide the facility to open an NRE/FCNR account from overseas, by

downloading the form from the website of the bank of their choice.

Generally, the account opening form must be accompanied by

A passport copy,

The visa or residence permit of the country the NRI is residing in, and

A set of 2 photographs

The signatures on the form have to be verified by either officials at the Indian

Embassy or consulate in the country of his residence or the Notary public. In case theparticular bank has an overseas branch in the applicants city, documents can be

verified at that office.

The initial remittance must be sent along with the documents.

NRIs can empower a local citizen to operate their domestic accounts through a Power

of Attorney or a letter of authority. NRIs can appoint nominees, resident Indians or

otherwise, to their account.

Major banks offering different types of accounts to NRIs:-

Axis Bank HSBC Bank Kotak Mahindra BankBank Of Baroda ICICI Bank Oriental Bank Of Commerce

10
http://www.ratekhoj.com/indexurl.php?url=http://www.axisbank.com/nri/interestrates/nridepositrates/NRI-Deposit-Rates.asp?ucode=NRIhttp://www.ratekhoj.com/indexurl.php?url=http://www.hsbc.co.in/1/2/personal/nri-services/usa/indian-rupee-account#nrehttp://www.ratekhoj.com/indexurl.php?url=http://www.kotak.com/Kotak_BankSite/nri/deposits/rtd_nre_int_rates.htmhttp://www.ratekhoj.com/indexurl.php?url=http://www.bankofbaroda.com/interest.asphttp://www.ratekhoj.com/indexurl.php?url=http://www.icicibank.com/Pfsuser/icicibank/ibank-nri/nrinewversion/int_NREfd.htmhttp://www.ratekhoj.com/indexurl.php?url=http://www.obcindia.com/uniquepage.asp?id_pk=129http://www.ratekhoj.com/indexurl.php?url=http://www.axisbank.com/nri/interestrates/nridepositrates/NRI-Deposit-Rates.asp?ucode=NRIhttp://www.ratekhoj.com/indexurl.php?url=http://www.hsbc.co.in/1/2/personal/nri-services/usa/indian-rupee-account#nrehttp://www.ratekhoj.com/indexurl.php?url=http://www.kotak.com/Kotak_BankSite/nri/deposits/rtd_nre_int_rates.htmhttp://www.ratekhoj.com/indexurl.php?url=http://www.bankofbaroda.com/interest.asphttp://www.ratekhoj.com/indexurl.php?url=http://www.icicibank.com/Pfsuser/icicibank/ibank-nri/nrinewversion/int_NREfd.htmhttp://www.ratekhoj.com/indexurl.php?url=http://www.obcindia.com/uniquepage.asp?id_pk=129


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Canara Bank IDBI Bank Punjab National BankCentral Bank Of India Indian Bank Standard Chartered Bank

Citibank Indian Overseas Bank State Bank Of IndiaCorporation Bank IndusInd Bank Union Bank Of India

HDFC Bank ING Vysya Bank United Bank Of India

ABN AMRO Bank Allahabad Bank Andhra Bank

Bank of India Bank of Maharashtra Centurion Bank of Punjab

Central Bank of India Karur Vysya Bank Ltd. UCO Bank

Dena Bank South Indian Bank Ltd. Vijaya Bank

Economic Impact of Remittances:-

Remittances and flow of funds from migrant workers to their home countries have

become a major source of resources in developing and emerging economies.

These remittances from NRIs and deposits maintained by them form a substantial

part (about 23%) of our external reserves. For some smaller economies they form

an even larger segment of external reserves. These remittances & deposits

contribute to the growth & development of the economy as more and more

capital is available which can be used for various beneficial purposes. The

foreign currency received can be lent in the international market which will earngood amount of interest to the lender. Also, a good amount of commission can

be earned on exchanges. The loss which the institutions suffer in the event of

exchange of currency can also be minimized as foreign currency will be available

freely in the form of deposits. All these things lead to growth & profitability of

the business. Indirectly, it will generate employment in the economy because

the requirement of the manpower to serve the customers will increase when the

depositors will increase. It also helps in maintaining the Balance of payment.

Directly or indirectly, it is the economy of the country which is benefitted as the

money available will be used in favour of the economy only.

Interest rates:-

11
http://www.ratekhoj.com/indexurl.php?url=http://www.canarabank.com/English/Scripts/NRIServices.aspxhttp://www.ratekhoj.com/indexurl.php?url=http://www.idbi.com/products/nriservice_interestrates.asphttp://www.ratekhoj.com/indexurl.php?url=http://pnbindia.com/english_web/n_interest.htmhttp://www.ratekhoj.com/indexurl.php?url=http://www.centralbankofindia.co.in/english/interest.asphttp://www.ratekhoj.com/indexurl.php?url=http://www.indianbank.in/interest.htmhttp://www.ratekhoj.com/indexurl.php?url=http://www.standardchartered.com/in/cb/nri/nri_interestrates.htmlhttp://www.ratekhoj.com/indexurl.php?url=https://www.online.citibank.co.in/portal/newgen/seo/nri/foreign-currency-account.htm?eOfferCode=FLINK024http://www.ratekhoj.com/indexurl.php?url=http://iob.in/nreint.asphttp://www.ratekhoj.com/indexurl.php?url=http://www.sbi.co.in/user.htm?action=viewsection_opennew2&lang=0&id=0,16,387,392http://www.ratekhoj.com/indexurl.php?url=http://www.corpbank.com/asp/0100text.asp?presentID=60&headID=0http://www.ratekhoj.com/indexurl.php?url=http://www.indusind.com/PageProcess.aspx?pageid=216http://www.ratekhoj.com/indexurl.php?url=http://www.unionbankofindia.co.in/nri_rates.aspxhttp://www.ratekhoj.com/indexurl.php?url=http://www.hdfcbank.com/nri/accounts/nre_fixed_interest.htmhttp://www.ratekhoj.com/indexurl.php?url=http://www.ingvysyabank.com/scripts/nreinterest.htmhttp://www.ratekhoj.com/indexurl.php?url=http://www.unitedbankofindia.com/interestrates.asp#nredepositshttp://www.ucobank.com/http://www.ratekhoj.com/indexurl.php?url=http://www.canarabank.com/English/Scripts/NRIServices.aspxhttp://www.ratekhoj.com/indexurl.php?url=http://www.idbi.com/products/nriservice_interestrates.asphttp://www.ratekhoj.com/indexurl.php?url=http://pnbindia.com/english_web/n_interest.htmhttp://www.ratekhoj.com/indexurl.php?url=http://www.centralbankofindia.co.in/english/interest.asphttp://www.ratekhoj.com/indexurl.php?url=http://www.indianbank.in/interest.htmhttp://www.ratekhoj.com/indexurl.php?url=http://www.standardchartered.com/in/cb/nri/nri_interestrates.htmlhttp://www.ratekhoj.com/indexurl.php?url=https://www.online.citibank.co.in/portal/newgen/seo/nri/foreign-currency-account.htm?eOfferCode=FLINK024http://www.ratekhoj.com/indexurl.php?url=http://iob.in/nreint.asphttp://www.ratekhoj.com/indexurl.php?url=http://www.sbi.co.in/user.htm?action=viewsection_opennew2&lang=0&id=0,16,387,392http://www.ratekhoj.com/indexurl.php?url=http://www.corpbank.com/asp/0100text.asp?presentID=60&headID=0http://www.ratekhoj.com/indexurl.php?url=http://www.indusind.com/PageProcess.aspx?pageid=216http://www.ratekhoj.com/indexurl.php?url=http://www.unionbankofindia.co.in/nri_rates.aspxhttp://www.ratekhoj.com/indexurl.php?url=http://www.hdfcbank.com/nri/accounts/nre_fixed_interest.htmhttp://www.ratekhoj.com/indexurl.php?url=http://www.ingvysyabank.com/scripts/nreinterest.htmhttp://www.ratekhoj.com/indexurl.php?url=http://www.unitedbankofindia.com/interestrates.asp#nredepositshttp://www.ucobank.com/


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The rate of interest of different banks on all accounts maintained by NRIs is same.

Given below are the interest rates of HDFC Bank as on 1 st May 2010 which are

provided by these banks on different accounts.

NRE A/C

Savings

A/c

Fixed Deposit

3.5% PER

ANNUM

Period Interest

Rate

Annualised rate Per

Annum (compounded

quarterly)

1 Year to less than 2

Years

2.77% 2.79%

2 Years to less than 3

Years

2.95% 2.98%

3 Years to 5 Years 3.50% 3.55%

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NRO A/C

Interest earned on NRO Savings Account / NRO Fixed Deposit is subject to Tax

deduction at source*.W.e.f Aug 09, applicable TDS rates are:

NROTaxRate Surcharge

EducationCess Total

Payment up to Rs 10 Lakh 30% - 3% 30.90%

Payment equal to and above Rs10 lakh

30% 10% 3% 33.99%

SavingsA/c

Fixed Deposit(Below Rs.15 lakhs)

3.5%PER

ANNUM

PeriodInterest Rate (per

annum)

PeriodInterest Rate

(per annum)7 - 14 days 2.25%

15 - 29 days 2.25%

30 - 45 days 3.00%

46 - 60 days 3.50%

61 - 90 days 3.75%

91 Days to less than6 months 1 day

4.50%

6 months 1 day - 6months 15 days

5.50%

6 months 16 days 5.50%

6 months 17 days -9 months 15 days

5.50%

9 months 16 days 6.00%

9 months 17 days -1 Year

5.75%

1 year 1 day - 1year 15 days

6.50%

1 year 16 days 6.75%

1 year 17 days - 2years

6.50%

2 years 1 day - 2

years 15 days

7.00%

2 years 16 days 7.25%

2 years 17 days - 3years

7.00%

3 years 1 day - 5years

7.50%

5 years 1 day - 8years

7.50%

8 Year 1 Day - 10

Years7.50%

FOREIGN EXCHANGE DEPARTMENT OF RBI:-

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With the introduction of the Foreign Exchange Management Act 1999, (FEMA) with

effect from June 1, 2000, the objective of the Foreign Exchange Department has

shifted from conservation of foreign exchange to "facilitating external trade and

payment and promoting the orderly development and maintenance of foreign

exchange market in India".

The new Act has brought about structural changes in the exchange

control administration. Regulations have been framed for dealing with

various types of transactions. These regulations are transparent and

have eliminated case-by-case approvals.

All current account transactions are free from restrictions except

8 transactions prohibited by the Government of India.

11 transactions which require prior permission of the Government

of India and

16 transactions on which indicative limits are fixed by the

Government and release of foreign exchange beyond those limits

requires permission from the Reserve Bank. All Regional Offices of

the Department have in turn been authorized to release exchange

for such transactions.

For capital account transactions, the Reserve Bank regulations provide

for general permissions/automatic routes for investments in India by

non-residents, investments overseas by residents and borrowings abroad,

etc.

The Department ensures timely realisation of export proceeds and

reviews, on a continuous basis, the existing rules in the light of

suggestions received from various trade bodies and exporters' fora.

The Department collects data relating to forex transactions fromauthorised dealers on a daily basis for exchange rate management and

on a fortnightly basis for monthly quick estimates of balance of

payments and quarterly balance of payments compilation.

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The Department lays down policy guidelines for risk management

relating to forex transactions in banks.

The Department is also entrusted with the responsibility of licensing

banks/money changers to deal in foreign exchange and inspecting them.

There is a "Standing Consultative Committee on Exchange Control"

consisting of representatives from various trade bodies and authorised

dealers which meets twice a year and makes recommendations for policy

formulation.

With a view of further improving facilities available to NRIs and

removing irritants, the Department is also engaged, on an ongoing basis,

in reviewing and simplifying the procedures and rules

Borrowings from NRIs/ Person of Indian Origin by Indian nationals:-

Reserve Bank of India has granted general permission w.e.f. March 30, 1999 to the

Resident Indian / proprietorship / partnership firms to avail of interest bearing rupee

loans from NRIs/PIOs on non repatriable basis. This permission is subject to

compliance with the following conditions,

1. The rate of interest of such loans should not exceed 2 percentage points over

the Bank Rate prevailing on the date of granting the loan.

2. The maturity period of the loan should not exceed 3 years.

3. The loan can be granted out of funds remitted from abroad in foreign exchange

through normal banking or out of NRE/FCNR/NRO/NRSR accounts maintained

with authorized dealers in India. The payment of interest /repayment of loans

should be made by credit to NRO/NRSR accounts of the Non Resident lender.

In case where the loan was granted out of funds held in NRSR account of thelender, the repayment of loan or repayment of interest should be made by

credit to NRSR accounts of the lender.

4. The principal amount of the loan will not be repatriable.

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5. The loan cannot be raised for the purpose of carrying out

agricultural/plantation activity or for purchase of immovable property

/shares/debentures / bonds or for re-lending.

Portfolio Investment Scheme (PIS):-

This is similar to the NRE/NRO savings a/c. The NRI can trade in the secondary stock

market with Repatriation (from NRE PIS a/c) and on non-repatriation basis(from NRO

PIS a/c). Demat a/c and Trading account is also mandatory after opening of PIS

account to carry out trading and maintain shares in demat form. The application of

PIS is to be submitted to a designated branch of an authorized dealer in India in the

prescribed form. Reserve Bank has authorized a few branches of each authorized

dealer to conduct the business under Portfolio Investment Scheme. NRIs will have to

route their applications through any of the designated authorized dealer branches

who have been authorized from Reserve Bank. The banks active in PIS business are

Axis, HDFC & ICICI Bank.

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2. RESEARCH OBJECTIVES

NRIs today are depositing their savings in India because of the attractive interest

rates & good opportunities in India as compared to the facilities in foreign countries.Major banks in India are offering various facilities to NRIs for depositing money in

various accounts.

This study is thus conducted to find out the various services, market share and the

strategies adopted by some of the major players in this field like SBI, HDFC, ICICI,

Corporation Bank, Axis and comparing the results with IDBI Bank with the motive to

find out various gaps in the NRI business of this bank and then giving suggestions for

attracting more and more NRIs to deposit in this bank.

This report highlights total NRI business in India, the benefits and various accounts

which can be opened by NRIs and the competition among various banks on the basis

of services provided, the competition faced by IDBI Bank & various recommendations

for attracting more and more NRIs has been covered.

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3. RESEARCH METHODOLOGY

In order to achieve the objectives of the research, the information is collected from

various sources, major part being the internet. Various types of accounts, interestrates and other facilities of the banks are considered. Various rules and regulations of

RBI, FEMA concerning this have also been found through the same mode.

Apart from this, visit to the corporate offices and the branches of these banks were

made from time to time in order to extract the information regarding the facilities &

strategies. This was only possible after interaction with the NRI Department of all

these banks.

The guidance of the mentor as well as the employees was taken on regular basis to

find out various facts and correlate the findings in the event of research.

Also, various books were referred to develop the concept.

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4. ANALYSIS

In this part, the comparison of the major banks like SBI, HDFC Bank, ICICI Bank,

Corporation Bank, Axis Bank and IDBI Bank is made on the basis of the variousaccounts & sub-accounts and the services which are associated with each of these

accounts. Also, a brief summary on the market share, strategies adopted,

international presence and other outstanding benefits are covered to get clear

distinction.

STATE BANK OF INDIA

SBI provides a range of banking products through its vast network in India and

overseas, including products aimed at NRIs. The State Bank Group, with over 16000

branches, has the largest branch network in India. With an asset base of $260 billion

and $195 billion in deposits, it is a regional banking behemoth. It has a market share

among Indian commercial banks of about 20% in deposits and advances, and SBI

accounts for almost one-fifth of the nations loans. The bank has 131 overseas offices

spread over 32 countries as on 31st Dec 2009. It has branches of the parent in

Colombo, Dhaka, Frankfurt, Hong Kong, Johannesburg, London and environs, Los

Angeles, Male in the Maldives, Muscat, New York, Osaka, Sydney, and Tokyo. It has

offshore banking units in the Bahamas, Bahrain, and Singapore, and representative

offices in Bhutan and Cape Town.

The various types of accounts options at SBI are-

1. NRE [ Non-Resident External ] Account :-

The various types of account in NRE A/c are:-

Savings A/C

Current A/C

Term Deposit

Special Term Deposit

Recurring Deposit

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http://en.wikipedia.org/wiki/Non-resident_Indianhttp://en.wikipedia.org/wiki/Non-resident_Indian


20/42

The various types of benefits in different accounts include Multi-city cheque book,

Internet Banking, Inter-national Debit card, Safety, Liquidity, Premature withdrawal,

Transferability, Timely Payment of Interest, Automatic Renewals, Flexibility etc.

ATM GOLD DEBIT CARD:-This card is available to all NRI customers with minimum

quarterly balance of Rs.50000. It is free of cost and zero annual maintenance charges.

Savings A/C Current

A/C

Term

Deposit

Special

Term

Deposit

Recurring

Deposit

Min Bal

MCC

Internet

Banking

Inter-

national

Debit card

Rs.1000

Personal

Banking-

Rs.5000YES, Rs.3

per leaf

Limit 2lakh

YES

YES

Low

O/D

facility

YES, Rs.3per leaf

Limit

2lakh

YES

YES

Rs.1000

1 to 5

years

Interestpaid

quarterly

Rs.1000

1 to 5 years

Interest

compoundedevery

quarter

YES

Invest a fixed

sum monthly

and draw the

total amountwith interest on

maturity

2. NRO [ Non-Resident Ordinary ] Account :-

The various types of account in NRO A/c are:-

Savings A/C

Current A/C

Term Deposits

Recurring Deposits

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Min Bal

Facilities

Rs.1000

Multi-City Cheque, International Debit Card &

Internet banking

3. FCNR [ Foreign Currency Non-Resident (B) ] Account :-

Currencies Acceptable

Min Deposit

Facilities

US dollar, Euro, Sterling, Pounds, Canadian dollar,

Australian dollar and Japanese Yen.

USD 1000 or equivalent, minimum of 1 year and a

maximum of 5 years

Nomination facility (can be a resident Indian),

International Debit Card & Internet banking.

4. RFC [ Resident Foreign Currency ] Account :-

The various types of account in RFC A/c are:-

Savings A/C

Current A/C

Term Deposits

Currency Acceptable

Min Deposit

Maintained in US$ but withdrawal only in Indian

currency i.e. rupees

Term deposits can be maintained from 1 to 3 years

with minimum 1000 US$

SBI is the first bank to launch NRI services. It holds approximately 25% market share of

total NRI business. It is due to its mutual trust among people and being the largest

public sector bank. It is present in 30 countries & has 70 foreign offices, making its

presence all over the world. The transfer charges are less as compared to other

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banks. They do not go for any advertisement which focuses especially on the NRI

services.

HDFC BANK

HDFC Bank is a major Indian financial services company based in Mumbai,

incorporated in August 1994, after the Reserve Bank of India allowed establishing

private sector banks. The Bank was promoted by the Housing Development Finance

Corporation, a premier housing finance company of India. HDFC Bank has 1,412

branches and over 3,295 ATMs, in 528 cities in India, and all branches of the bank are

linked on an online real-time basis. As of September 30, 2008 the bank had total

assets of INR 1006.82 billion. For the fiscal year 2008-09, the bank has reported net

profit of Rs.2244.9 crore, up 41% from the previous fiscal.

The various types of accounts options at HDFC Bank are-



Savings A/C

Current A/C (Ideal for ESOPs)

Fixed Deposit

2.NRO [ Non-Resident Ordinary] Account:-


Savings A/C

22

Savings A/C Current A/C Fixed Deposit

Min Bal

Cheque BookInternetBanking

Inter-nationalDebit card

Transfer Fees& Charges

Rs.10,000(Urban)Rs. 5,000 (Semi-

Urban)Yes, FREE

Yes

Yes, Rs.100 issue& maintenance

fees

Rs. 10,000,Rs. 25000-Average

QuarterlyYes, FREE

Yes

Yes, Rs.100 issue &maintenance fees

Initial Deposit:Rs. 25,000,

Add-onDeposits: Rs.

10,000Min 1 year toMax 5 years

No,No cheque book

Up to Rs.50000-NILAbove Rs.50000-0.40 per 1000


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Current A/C(Ideal for FCBs)

Fixed Deposits



Min Deposit

Facilities

US dollar, Euro, Sterling, Pounds, Canadian dollar,Australian dollar and Japanese Yen.

USD 1000 or equivalent, add-on deposit USD 1,000 orequivalent, Min 1 year to Max 5 years

Nomination facility, deposit jointly with other NRIs



Savings A/C

Fixed Deposits

Other accounts-

23


Min Bal

Cheque BookInternetBanking

ATM & Debitcard

Transfer Fees &Charges

Rs.10,000 (Urban)Rs. 5,000 (Semi-Urban)

Yes, FREEYes

Yes, Rs.100 issue &maintenance fees

Up to Rs.50000-NILAbove Rs.50000-Rs.2.90 per 1000

Rs. 10,000, Rs.25000-AverageQuarterlyYes, FREE

Yes

Yes, Rs.100issue &maintenancefees

Initial Deposit:Rs. 25,000,

Add-on Deposits:Rs. 10,000

7 days to 10years, Interest

credited every 3months

No

Up toRs.50000-NILAboveRs.50000-Rs.0.40 per1000

Savings A/C Fixed Deposits

Currencies acceptable

InterestInternet banking

USD, EURO, GBP & JPYbut withdrawal in IndianrupeesCredited quarterlyYes

USD, EURO, GBP & JPY butwithdrawal in Indian inrupees, Max- 3 YearsCredited quarterly


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HDFC Bank was declared as the most Technology-friendly Bank at the Business World

Best Bank Awards announced in May. These annual awards are given to top

performing Banks in the categories of Best Bank, Fastest Growing Bank, Most Tech-

savvy Bank, Best Banker and Lifetime Achievement, among others. It provides bettercustomer and exchange services. It holds approximately 10% Market share of total NRI

business. It provides FREE monthly statements to all the NRI customers in order to

make them aware of the position of their account. Bank has its branches in Dubai &

U.K. It gives very less advertisement as it depends more on word of mouth. It also

provides online counseling services to NRI customer to solve their doubts, saving their

time and serving them when they are abroad. They also help customers to choose the

best product for them by asking few questions online which are related to their

needs and expectations. An employee from bank, on request, also visits the

customers when they are in India, to help them by face-to-face interaction.

ICICI BANK

24

Super Saver A/C Sweep-in A/C Rupee Max A/C

Type of A/C

Purpose

Tenure

Add-on deposit

Other Benefits

Fixed Deposit

Liquidity of SavingsA/C and high interest

rates.

Linked to the deposit

Rs.25000Overdraft Facility,High interest rates,

Cheque book

Fixed Deposit

Takes care of deficitin NRI Savings /Current A/C by

linking without losingout on interest

Linked to a Savings /Current Account

N.A.Cheque book andATM/Debit card

FCNR

Forward coverproduct that

converts foreigncurrency

investments inINR maintained

in rupees1,2 or 3 years

----Min Deposit

amount - USD1000/ GBP2500/ Euro

2500, No lock-inperiod, Higher

yield


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ICICI Bank is a major banking and financial services organization in India. The bank

has a network of 1,700+ branches and about 4,721 ATMs in India and present in 18

countries, as well as some 24 million customers. ICICI Bank offers a wide range of

banking products and financial services to corporate and retail customers through a

variety of delivery channels and specialization subsidiaries and affiliates in the areas

of investment banking, life and non-life insurance, venture capital and asset

management. ICICI Bank is also the largest issuer of credit cards in India. The Bank is

expanding in overseas markets and has the largest international balance sheet among

Indian banks. The Bank is now targeting the NRI (Non-Resident Indian) population.

The various types of accounts options at ICICI are-



Savings A/C

Fixed Deposit

Recurring Deposit

2. NRO [ Non-Resident Ordinary] Account :-


Savings A/C

Fixed Deposits

Recurring Deposits

Savings A/C Fixed Deposit Recurring Deposit

25

Savings A/C Fixed Deposit Recurring Deposit

Min BalIntern

ational ATM-Debit cardInternetBankingMandate Card

Rs.15000Y

es

Yes

Yes

Rs.25000, 1year to10 years

Rs.5000 to Rs.100000Multiples of Rs.1000

Yes


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Min Bal

ATM Card

Internet

Banking

Rs.15000

Yes, Rs.200 annualcharges

Yes

Rs.25000, 15days to 10 years

Rs.5000 to Rs.100000Multiples of Rs.1000

Yes


CurrenciesAcceptable

Min Deposit

Facilities

USD, GBP, EUR, JPY, AUD, CAD

USD= GBP= EUR=1000, AUD=CAD=2000, JPY=200000, Min1 Year to Max 5 Years

Automatic renewal on maturity, Electronic Deposit

Confirmation Advise (E- DCA) on e-mail ID within 1working day



Savings A/C

Fixed Deposits



Min Bal

USD, GBP USD, GBP, EUR and JPYUSD=GBP= EUR 1000, JPY200000, Min 30 days to

Max 3 years

Other accounts-

Rupee Plus Plan Seafarer A/C Student A/C NRI Edge

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Purpose

Currenciesacceptable

Min Bal

Tenure

Earn higherreturns ondeposits thanNRE FD

USD/GBP/EUR

USD=EURO=2500/ GBP 1000 / Rs100000

1 year and 1 day

Managefinances whilesailing awayfrom home,Easy Access and

Monitoring

Rs.15000

Free MoneyTransfer

Managefinances ineasiermanner & getAttractive

ExchangeRates

Rs.5000

Free MoneyTransfers,Easy AccessandMonitoring

Bouquet offeatures on allNRI basedproducts andservices,

Free Inter-national ATM-cum-Debitcard,withdrawal upto Rs.100000,Free multi-citycheque-book,Insurancebenefits.

NRI SMART SAVEDEPOSIT

NRO FD PLUS Global IndianA/C

meNRI

Free collectionfacility for NRIcustomers totransfer their

deposits from otherbanks to invest in

ICICI,Lifetime Free inter-national credit card,

insurance cover

Get a high post taxyield through

lower tax rates,Advantage of

Double taxationavoidance

agreementbetween India &other countries,

Available on new &existing NRO-FD

A/C

For NRI living inUK, convenienceof opening bothan NRE RupeeA/C & an UKCurrent A/C,

Access tobanking facility,Instant

onlineremittancefacility from theUK Current A/Cto the NRE A/C

For NRI living inUAE, ICICI-NRIServices and

meBANK joinedhands to give aone-stop shop

facility, Debitcards and chequebooks, Internet

banking

ICICI Bank won World Finance 2009 banking awards for best NRI services bank. ICICI

bank has approximately 30% market share of total NRI business. It provides Free P.O.

Box facility to all the customers so that they can contact bank without any charge. It

has its branches in Newyork. A special website money2india.com of ICICI bank

provides facility to the general public for money transfer. Bank account holders get

quick service at few charges when they use this website to transfer money. It also

has NRI Engage to strengthen relations with NRIs by providing newsletter centered

on information related to NRI investments. It gives advertisements in September &

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October as most NRI visit India in that period. It gives Electronic Deposit

Confirmation to every customer after the transaction is done. It also provides online

counseling services to NRI customer to solve their doubts, saving their time and

serving them when they are abroad. An employee from bank, on request, also visits

the customers when they are in India, to help them by face-to-face interaction.

CORPORATION BANK

Corporation Bank started its journey in the name of the Canara Banking Corporation

(Udupi) Ltd in 1906 with a sum of Rs. 5000 only in a small town of Udupi near the city

of Mangalore in Karnataka. Corporation bank merged with the Bank of Citizens in

1961. In April 1980, it was given a status of nationalized bank. Currently it is one of

the well-recognized Public Sector Banks in India. It runs more than 600 ATMs

extending across 21 States and 2 Union Territories. In the field of personal banking

services, any customer can seek services like Corp Pragathi Account, Current Account,

Term Deposit, EMI / Deposit Maturity Calculator, Home Loan and Insurance, Savings

Bank A/C and Loans. This bank assists in the sale of gold coins and bars. For NRI

customers, the Corporation Bank arranges for Speed Cash and Speed Remittance, Corp

Quick Remit, loans, deposits and portfolio services. Forex Facilities for Residents,

NRIs & PIOs are also available.The various types of accounts options at CorporationBank are-



Savings A/C

Current A/C

Fixed Deposit

Recurring Deposit

Savings A/C CurrentA/C

Fixed Deposit Recurring Deposit

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Min Bal

MCC

Internet

Banking

ATM-cum-Debit card

Rs.500

Yes

Yes

Yes

Low

Yes

Yes

Yes

Rs.1000, 1 to10 years

Invest a fixed summonthly and drawthe total amountwith interest onmaturity

2. NRO [ Non-Resident Ordinary] Account :-


Savings A/C

Current A/C

Fixed Deposits

Recurring Deposits

Savings A/C Current A/C Fixed Deposit RecurringDeposit

Min Bal

MCC

InternetBanking

ATM-cum-Debit Card

Rs.500

Yes

Yes

Yes

Low

Yes

Yes

Yes

Rs.1000, 7 daysto 10 years

Invest a fixedsum monthlyand draw thetotal amountwith intereston maturity

3. FCNR [Foreign Currency Non-Resident (B) ] Account:-

CurrenciesAcceptableMin DepositFacilities

Pound Sterling, US Dollar, Japanese Yen, Euro, CanadianDollar and Australian Dollar

USD 1000 or equivalent, Min 1 year to Max 5 yearsJoint Account (with NRIs), International Debit Card &

Internet banking.



Savings A/C29


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Fixed Deposits


Currencies AcceptableMin Bal

USDUSD 250

USDUSD 1000, Min 1 year to Max

3 years

Corporation Bank has limited number of NRI depositors. Due to less number of

accounts and facilities, few of NRIs deposit money with them. It holds approximately

5% market share of total NRI business. They do not lay much emphasis on NRIs. It

does not provide any free account statements or any other extra services like online

counseling, face-to-face interaction etc. They do not give any advertisement focusing

NRIs. Therefore the NRI customer base of Corporation Bank is limited.

AXIS BANK

Axis Bank, formerly UTI Bank, is a financial services firm that had begun operations in

1994, after the Government of India allowed new private banks to be established. The

Bank was promoted jointly by the Administrator of the Specified Undertaking of UTI,

LIC, GIC, NIC etc. UTI holds a special position in the Indian capital markets. The bank

changed its name to Axis Bank in April 2007 to avoid confusion with other unrelated

entities with similar name. At the end of March, 2010, the Bank has a very wide

network of more than 1000 branches and Extension Counters. The Bank has a network

of over 4055 ATMs.

The various types of accounts options at Axis Bank are-



Normal Savings A/C

Prime Savings A/C

Current A/C

Term Deposit

Priority A/C

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Normal A/C Prime A/C CurrentA/C

TermDeposit

Priority A/C

Min Bal

InternetBanking

MCC

DebitCard

Rs.5000

Yes

Free

Rs.95-issuecharges

Rs.25000

Yes

Yes

FREE(inter-national)

Rs.10000 Rs.10000,3 years to

10 years

Min Avr BalQuarter-

Rs.1lakh in SBA/c ORMin Avr

Rs.5 lakh incombination SB+ TERM deposit

FREE(inter-national)

Priority A/c has various other features like Priority Banking Lounge, Dedicated

Relationship Manager, preferential pricing on foreign exchange rates, discounted rate

of 25% on annual fees for availing locker facilities, Mobile banking etc



Normal Savings A/C

Prime Savings A/C

Current A/C

Term Deposit

Priority A/C

Normal A/C Prime A/C CurrentA/C

TermDeposit

Priority A/C

Min Bal

InternetBanking

MCC

Debit Card

Rs.5000

Yes

Free

Rs.95-issue

Rs.25000

Yes

Yes

FREE (inter-

Rs.10000 Rs.10000,7 days to

10 years

Min Avr BalQuarter-Rs.1lakh

in SB A/c OR MinAvr Rs.5 lakh incombination SB +TERM depositFREE(inter-national)

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charges national)



Min Deposit

USD, GBP, EUR, JPY, AUD, CAD

USD 1000 or equivalent, Min 1 Year to Max 5 Years



Savings A/C

Fixed Deposits

Savings A/C Fixed Deposit


Min Bal

USD, GBP, EURO, AUD andCAD

USD, GBP, EURO, AUDand CAD

USD 1000 or equivalent,30 days to 5 years

Other accounts-

NRE Salary A/C Portfolio Investment Scheme(PIS) A/C

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Establishments with a minimum of 10NRI employees can opt for NRI salary

accounts to provide world class bankingfacilities to their employees, Free

Multicity Cheque Books & International

Debit Card, Personal Accident InsuranceCover of Rs. 2 Lakh, Free InternetBanking, Tele-banking & Monthly Email

statements

Allows NRIs to invest in shares of Indiancompanies, in secondary market, in

respect of shares or convertibledebentures sold or purchased through aregistered stock broker on a recognized

stock exchange, Low Min Bal Rs 5,000,Low cost of transaction, Accountmaintenance charge of Rs 1,000 & Free

Internet Banking

Axis Bank has very good infrastructure facilities. It holds approximately 15% market

share of total NRI business. The relationship manager is in regular touch with all the

customers. Also NRI help desk has been setup for solving the problems of people. NRI

Local Post Box is there for the customers for sending documents to the bank. It gives

advertisements focusing NRIs in November, December & January as most of the NRIs

visit India at that time. An employee from bank, on request, also visits the customers

when they are in India, to help them by face-to-face interaction.

IDBI BANK

IDBI Bank offers attractive interest rates, vast network, excellent service and a

complete suite of products make IDBI Bank the preferred bank for NRIs.

The various types of accounts options at IDBI are-



Savings A/C

Current A/C

Fixed Deposit


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Min Bal

Interest

Cheque book

International ATMcum Debit Card

Online accountstatement

Rs.5000

Compoundedquarterly

Yes

Yes

Yes

Rs.10000

Compoundedquarterly

Yes

Yes

Rs.10000, 1year to 3 years

Compoundedquarterly



Savings A/C

Current A/C

Fixed Deposit

Recurring Deposit

Savings A/C Current A/C Fixed Deposit RecurringDeposit

Min Bal

Interest

Cheque book

InternationalATM cum

Debit Card

Onlineaccount

statement

Rs.5000

Compoundedquarterly

Yes

Yes

Yes

Rs.10000

Compoundedquarterly

Yes

Yes

Rs.10000, 15days to 10 years

Compoundedquarterly

Rs.100 permonth

Compoundedquarterly


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Min Deposit

Interest

USD, GBP, EUR, AUD, CAD

USD 1000 or equivalent, Min 1 Year to Max 5 Years

Initial interest is paid after one year and subsequentlyafter every six months



Savings A/C

Current A/C

Fixed Deposits

Currency Acceptable

Min Deposit

Interest

Facilities

USD, GBP, EUR & JPY

USD 1000(for FD), up to 3 years

Compounded quarterly

Cheque book with SB A/c, International ATM cumDebit Card, Online account statement

Other accounts-

SuperSavings A/C

GalaxySilverA/C

PowerPlus A/C

Preferred A/C Royale A/C

AverageQuarterlyBalance

International ATM/Debit

Card

ChequeBook,Internet &Phonebanking

Rs.5000

Rs.99(annualfee)

FREE

Rs.25000

Yes

FREE

Rs.50000

Free

FREE

Rs.100000

Free(Gold)

FREE

Rs.300000

Free(Platinum)

FREE

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IDBI Bank has very less NRI customers. It holds approximately 0.2% market share of

total NRI business. It has a branch in Dubai but its services are limited to wholesale

banking only. It does not have any representative offices in other countries. It

provides Insta Online service by which NRIs can open NRI account immediately from

home or office and customer gets immediate receipt of account number. It goes for

advertisement in the month of June & July at Kerala as it is the time of

festival-Onam and most NRIs visit Kerala at this time. It also organizes various

camps and offer gifts and extra facilities on opening of new accounts at this time. It

also launched Portfolio Investment Scheme services in Kochi which would enable NRIs

and Persons of Indian Origin to invest in secondary capital market. More than 40

brokers in Kerala and other parts of the country along with NRIs attended the

conference in March 2010. Advertisement in rest of the parts of the country is given

in the month of November, December and January as it is the time when most of the

NRIs visit India. It does not provide any online counseling services. The bank, on

request, also contacts the customers when they are in India.

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5. FINDINGS

After the whole study, it has been depicted that ICICI Bank is the leader in this field

followed by SBI. SBI is enjoying a good share because of it mutual trust among thepeople and being the first one to start NRI services. ICICI Bank, Axis Bank & HDFC

Bank holds good share because they provide the facilities as suited & expected by the

customers. They pay more and more attention on the customers and keep them

happy by providing different services. They are in regular touch and have specialized

branches & desk to help them. They lay emphasis on making new customers and

retaining existing once. Their international presence, basket of services & brand

image is the key to their success. Corporation Bank has less market share because it

does not pay attention on enhancing it business. It has its few traditional accounts &

customers and has not yet extended its facilities.

IDBI Bank has to face very tough competition in enhancing its business. As it is seen

that the interest rates of all the banks are more or less same, the basic difference

lies between the minimum balance, the services offered and the charges on these

services. IDBI Bank thus suffers on the parameters related to these due to which it

has very less NRI customers. Firstly, the branches and the representative offices of

the bank in foreign countries are not present due to which it is far behind the reach

of NRIs. Secondly, the types of accounts offered to NRIs are less due to which it

cannot satisfy the needs of each and every customers. Thirdly, various facilities like

online counseling, product selection etc are not present as compared to other banks.

Fourthly, the advertisements of this bank are very less due to which many of the

customers may not even know of the various services provided by the bank. Any of

the mechanism which can be used to find out the likes & dislikes of the customers

and feedback system is also not there. The various ways to keep the customers

informed and maintain contacts with them like newsletters etc are absent. Bank also

has the lack of infrastructure facilities. It does not have any specialized branches &

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help desk for NRIs in India as other banks have it. The existence of these matters a

lot as it is the way to please the customers and attract them towards the banks.

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6. LIMITATIONS

Though the emphasis has been laid on maintaining accuracy and minimizing the errors

in the collection & analysis of data, yet there were some limitations faced during the

study.

Limitations as far as the study is concerned are-

The management of the all the offices were not interested in interacting as

they got the clue that the information is collected for some research project.

Information like number of customers, amount of deposits etc was not

provided.

As the secondary data and the approximate figures were taken into

consideration, it became quite difficult to get the actual picture.

The policy of the banks to maintain secrecy was the main hindrance in

collection of data.

Due to shortage of time, an exhaustive research/competitor analysis could not

be carried out

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7. RECOMMENDATIONS

As it is seen that the basic difference between all the competitor banks lies in the

services provided and the way of handling customers, IDBI Bank can improve its

business by making changes and extending some of its facilities. The various steps

which IDBI Bank can take in order to enhance its NRI business and acquire a good

market share are -

Improvement of the infrastructure is most important as it attracts customer the

most.

The branches and the representative offices of the bank should be set up in

foreign countries so that it is in the reach of NRIs residing in different parts of

the world.

Specialized branches & help desk for NRIs in India should be set up to

facilitate them.

Various modes of operating account like Internet Banking, Phone Banking etc

should be associated with all types of accounts.

The Advertisements should be given from time to time and especially in

November, December and January at large scale as it is the time when most of

the NRIs visit India.

Some extra benefits like free ATM card, Cheque book, less remittance charges

etc can be associated with the accounts.

The type of accounts and services with certain related benefits may be

increased so that customers feel important and can satisfy their multiple

needs. Various facilities like online counseling, with tailor made product/solution etc

should be introduced so that customer can get accurate information by saving

time & cost.

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Proper mechanism to find out the likes & dislikes of the customers and get

feedback of the services rendered should be used as it will act as the mirror of

performance & basis of improvement.

Statements of accounts, annual reports, newsletters etc should be used to keep

in touch with the customers and also keep them informed.

A database of NRIs can be prepared and they can be made aware with the

various services of the bank through e-pamphlets, reports etc.

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8. REFERENCES

Interactions with NRI Services Departments:-

Mr. Prashant Kumar, Relationship Manager, SBI, Mumbai

Ms. Shalaka, HDFC Bank, Mumbai

Mr. Abhijeet Kumar, Assistant Manager, ICICI Bank, Mumbai

Mr. C.Sridharan, Chief Manager, Corporation Bank, Mumbai

Mr. Deepak Gaikwad, Relationship Manager, Axis Bank, Mumbai

NRI Department, IDBI Bank, Mumbai

Web Pages:-

www.rbi.org.in

www.iba.org.in

www.nrionline.com

www.nriinformation.com

www.onlinesbi.com/nri/

www.hdfcbank.com/nri_banking/home.htm

www.icicibank.com/pfsuser/icicibank/ibank-nri/nrinewversion

www.corpbank.com

www.axisbank.com/nri/index.asp

www.idbi.com/products/nriservice.asp

www.finmin.nic.in

www.iibf.org.in

www.idrbt.ac.in
http://www.rbi.org.in/http://www.iba.org.in/http://www.nrionline.com/http://www.onlinesbi.com/nri/http://www.hdfcbank.com/nri_banking/home.htmhttp://www.icicibank.com/pfsuser/icicibank/ibank-nri/nrinewversion/http://www.finmin.nic.in/http://www.iibf.org.in/http://www.rbi.org.in/http://www.iba.org.in/http://www.nrionline.com/http://www.onlinesbi.com/nri/http://www.hdfcbank.com/nri_banking/home.htmhttp://www.icicibank.com/pfsuser/icicibank/ibank-nri/nrinewversion/http://www.finmin.nic.in/http://www.iibf.org.in/

Documents

36930974 Utkarsh Project Report