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OF BANKING INDUSTRY

WITH REFERENCE

TO

S OUTH INDIAN B ANK Coimbatore

Project Report Submitted in Partial Fulfilmentof the Requirement for the

Award of the degree of MASTER OF BUSINESS ADMINISTRATION

of Mahatma Gandhi University

2008-2010

Submitted by:Brincy Sunny(MBA08A-16)

Under the guidance of Sanil Kumar V.K

DC SCHOOL OF MANAGEMENT TECHNOLOGY

Pullikkanam, Vagamon2009



DECLARATIONDECLARATION

I undersigned here by declare that the project report titled“ Project Report on Analysis of Deposits of Banking

Industry conducted at South Indian Bank.”, is a record of independent project work carried out by me under thesupervision and guidance of Mr.Sanil Kumar V.K ,

Lecturer, Department of Management Studies, DCSMAT,Idukki.

I also declare that this has not been

previously submitted for the award of any degree, diploma

or other similar title.

PLACE: Coimbatore Brincy Sunny

DATE:



ACKNOWLEDGEMENTACKNOWLEDGEMENT

At the outset, I take this opportunity to thank God Almighty,

without whose unseen guidance I could ever have embarked upon and

completed the work.

I take this opportunity to express my sincere thanks to Mr.Sanil

Kumar V.K, faculty of DCSMAT for giving me the opportunity to under

take this internship work.Words can hardly express my gratitude to

Mr.Nandakumar.V, Manager, SIB , for allowing me to do my project

work at this esteemed organization.

I express my genuine sentiments of gratitude to my parents,

teachers and friends for their moral support and encouragement throughout

my work.

I am greatly indebted to Mr. Nikhil and Ms.Sheeja ,

Project Guide from SIB for their wholehearted support and guidance during

the collection of the required data and its analysis.Last, not the least I convey

my sincere gratefulness to Ms.Sreeshma and Mrs.Kochu Mary , Clerk for

the support and assistance given by them to complete this task without

which I won’t have succeeded in this task .

Date: Brincy Sunny

Place: Coimbatore



CHAPTER NO. CHAPTER TITLE

1. Introduction

Objectives of the study

Need & Scope of study

Limitations of the study

2. a)b)c)

Industry ProfileCorporate ProfileBranch Profile

3. Various accounts &deposits

4.a)

b)

AnalysisCustomer preferenceCurrent scenario

5 Conclusion

BibliographyAnnexure



CHAPTER: 1HAPTER: 1

INTRODUCTIONINTRODUCTION



Bank may be defined as a financial institution which isengaged in the business of keeping money for savings andchecking accounts or for exchange or for issuing loans and creditetc. A set of services intended for private customers andcharacterized by a higher quality than the services offered to retailcustomers.Based on the notion of tailor-made services, it aims tooffer advice on investment, inheritance plans and provide activesupport for general transactions and the resolution of asset-related

problems.

The essential function of a bank is to provide servicesrelated to the storing of deposits and the extending of credit.Basic

function may include Credit collection, Issuer of banking notes,Depositor of money and lending loans.

Now a days banking is not in its traditional way , with theadvancement of technology its focusing on more comfort of customer providing services such as: online banking ,investment

banking , electronic banking , internet banking , pc banking /mobile banking, e-banking .

The importance of banking sector is immense in the progress and prosperity of any State or country. The economic progress and prosperity comes from the well-rounded developmentand an impeccable banking management.

Banks in general, governmental and private, have eased our financial transactions, security, and facilitated the funding for establishing a business or industry.

http://www.google.co.in/search?hl=en&oi=definer&q=define:online+banking&defl=en

http://www.google.co.in/search?hl=en&oi=definer&q=define:investment+banking&defl=en


http://www.google.co.in/search?hl=en&oi=definer&q=define:electronic+banking&defl=en

http://www.google.co.in/search?hl=en&oi=definer&q=define:internet+banking&defl=en

http://www.google.co.in/search?hl=en&oi=definer&q=define:pc+banking&defl=en

http://www.google.co.in/search?hl=en&oi=definer&q=define:e-banking&defl=en

http://www.google.co.in/search?hl=en&oi=definer&q=define:online+banking&defl=en



http://www.google.co.in/search?hl=en&oi=definer&q=define:electronic+banking&defl=en

http://www.google.co.in/search?hl=en&oi=definer&q=define:internet+banking&defl=en

http://www.google.co.in/search?hl=en&oi=definer&q=define:pc+banking&defl=en

http://www.google.co.in/search?hl=en&oi=definer&q=define:e-banking&defl=en



OBJECTIVES OF THE STUDYOBJECTIVES OF THE STUDY

Primary objectivePrimary objective ::

To find out why demand for deposits reduced now a days

Secondary objectives:Secondary obj ectives:

To study about different types of deposits.To find out the performance of SIB among major players in

Banking industry.

To find out which type of deposits hold by customer now and

its reason.

NEED FOR THE STUDYNEED FOR THE STUDY

Banking Industry in India is always uncertain. Anythingcan happen in that industry. Atleast a small economie change canaffect this industry. Now a days demand for deposits are reducedincremently. There is a trend to withdraw deposits bydepositholder and try to invest in other sectors. That thing

provoked me to conduct a study on that.

SCOPE OF THE STUDYSCOPE OF THE STUDY



Demand fo deposits are reduced.

Interest rate are volatile..

As the same information which are collected through this project will be very much useful to the new investor coming in

future period and making good decisions to invest fund in

deposits which have better opportunity.

LIMITATIONS OF THE STUDYLIMITATIONS OF THE STUDYAlmost analysis is based on figures drawn from publications

and websites.

Time was a major limitation. The study has to be conducted

within a period of one month.

Since the study was in the month of May & June, the latestdata regarding some matter were not available

Only one reason were taken for the study.

Study is time bounded.

The data which are used in the study are mostly collected

from secondary sources.



INDUSTRY PROFILE



Banking in India originated in the last

decades of the 18th century. The oldest bank in existence inIndia is the State Bank of India , a government-owned bank that traces its origins back to June 1806 and that is thelargest commercial bank in the country. Central banking isthe responsibility of the Reserve Bank of India , which in1935 formally took over these responsibilities from the thenImperial Bank of India, relegating it to commercial bankingfunctions. After India's independence in 1947, the ReserveBank was nationalized and given broader powers. In 1969the government nationalized the 14 largest commercial

banks; the government nationalized the six next largest in1980.

Currently, India has 88 scheduled commercial banks (SCBs) - 27 public sector banks (that is with the

Government of India holding a stake), 31 private banks(these do not have government stake; they may be publiclylisted and traded on stock exchanges) and 38 foreign banks.They have a combined network of over 53,000 branchesand 17,000 ATMs . According to a report by ICRA Limited,a rating agency, the public sector banks hold over 75

percent of total assets of the banking industry, with the private and foreign banks holding 18.2% and 6.5%respectively.

http://en.wikipedia.org/wiki/State_Bank_of_India

http://en.wikipedia.org/wiki/Reserve_Bank_of_India

http://en.wikipedia.org/wiki/Government_of_India

http://en.wikipedia.org/wiki/Automated_teller_machine

http://en.wikipedia.org/wiki/State_Bank_of_India

http://en.wikipedia.org/wiki/Reserve_Bank_of_India

http://en.wikipedia.org/wiki/Government_of_India

http://en.wikipedia.org/wiki/Automated_teller_machine



Functions of banks

Commercial banks engages in the following activities:

• accepting money on term deposit

• lending money by overdraft , installment loan, or other

means

• providing documentary and standby letter of credit ,

guarantees, performance bonds , securities

underwriting commitments and other forms of off

balance sheet exposures• safekeeping of documents and other items in safe

deposit boxes

• sale , distribution or brokerage , with or without advice,

of insurance , unit trusts and similar financial products

as a “financial supermarket”

http://en.wikipedia.org/wiki/Term_deposit

http://en.wikipedia.org/wiki/Overdraft

http://en.wikipedia.org/wiki/Letters_of_credit

http://en.wikipedia.org/wiki/Performance_bond

http://en.wikipedia.org/wiki/Safe_deposit_box


http://en.wikipedia.org/wiki/Sale

http://en.wikipedia.org/wiki/Distribution

http://en.wikipedia.org/wiki/Brokerage

http://en.wikipedia.org/wiki/Insurance

http://en.wikipedia.org/wiki/Unit_trust

http://en.wikipedia.org/wiki/Term_deposit

http://en.wikipedia.org/wiki/Overdraft

http://en.wikipedia.org/wiki/Letters_of_credit

http://en.wikipedia.org/wiki/Performance_bond



http://en.wikipedia.org/wiki/Sale

http://en.wikipedia.org/wiki/Distribution

http://en.wikipedia.org/wiki/Brokerage

http://en.wikipedia.org/wiki/Insurance

http://en.wikipedia.org/wiki/Unit_trust



• traditionally, large commercial banks also underwrite

bonds, and make markets in currency, interest rates,

and credit-related securities, but today large

commercial banks usually have an investment bank

arm that is involved in the mentioned activities.

• processing of payments by way of telegraphic transfer,

EFTPOS, internet banking, or other means

• issuing bank drafts and bank cheques

http://en.wikipedia.org/wiki/Underwrite

http://en.wikipedia.org/wiki/Market_maker

http://en.wikipedia.org/wiki/Bank_draft

http://en.wikipedia.org/wiki/Bank_cheque

http://en.wikipedia.org/wiki/Underwrite

http://en.wikipedia.org/wiki/Market_maker

http://en.wikipedia.org/wiki/Bank_draft

http://en.wikipedia.org/wiki/Bank_cheque



CORPORATE PROFILE

S OUTH I NDIAN B ANK



One of the earliest banks in South India,"South Indian Bank" came into being during the Swadeshimovement . The establishment of the bank was thefulfillment of the dreams of a group of enterprisingmen(mainly 44 persons) who joined together at Thrissur, amajor town (now known as the Cultural Capital of Kerala),in the erstwhile State of Cochin.

SIB was registered as a private LimitedCompany under the companies Act of 1913 andcommenced business on 29-01-1929 at Round South,Thrissur. The South Indian Bank Ltd., was formed by agroup of 44 enterprising men of Thrissur who contributed

Rs.500/- each to the initial paid up capital of Rs.22,000/-.Their main objective was to serve the merchant communityof Thrissur by freeing them from the clutches of the moneylenders who charged exorbitant rates of interest.

It mainly aims to provide for the people asafe, efficient and service oriented repository of savings of the community on one hand. And to free the business

community from the clutches of greedy money lenders onthe other by providing need based credit at reasonable ratesof interest.

Translating the vision of the founding fathers as



its corporate mission, the bank has during its long sojourn been able to project itself as a vibrant, fast growing, serviceoriented and trend setting financial intermediary.

EXPANSION PROGRAMME or POLICY OFTHE BANK

The Bank has taken long strides in its expansion programme and with 500 branches and 26 extension

counters, it has struck its roots in 23 States and UnionTerritories. The Bank has an ATM network at 225 centres.During the year under review, the Bank opened 25 new

branches, upgraded 8 extension counters and also opened50 ATMs.

A new Regional Office (RO) at Kolkata startedfunctioning from February 2008 and leveraging on it, Bank

intends to take up expansion programmes in the hithertounrepresented North Eastern States of Arunachal Pradesh,Manipur, Meghalaya, Tripura, etc. Another RO hasrecently been opened at Hyderabad, which will acceleratethe business growth in Andhra Pradesh, where Bank isalready having a good business volume.

The Bank already holds licence to open 15 new branches and plans to open 30 branches in the currentfinancial year.



Milestones• The First among the private sector banks in

Kerala to become a scheduled bank in 1946under the RBI Act.

• The First bank in the private sector in India toopen a Currency Chest on behalf of the RBI inApril 1992.

• The First private sector bank to open a NRIbranch in November 1992.

• The First bank in Kerala to develop an in-house, a fully integrated branch automationsoftware in addition to the in-house partialautomation solution operational since 1992.

• The First bank in the private sector to start anIndustrial Finance Branch in March 1993.

• The First among the private sector banks inKerala to open an "Overseas Branch" to cater

exclusively to the export and import businessin June 1993.• The first private sector bank from India to

provide managerial support to an Exchangehouse in middle east.

• The First Kerala based bank to implementCore Banking System.

• The Third largest branch network among

Private Sector banks, in India, with all itsbranches under Core banking System.



Presently:-

}---ING Group tie up with SIB:

ING Life, part of the ING Group, the world’s largestfinancial services provider today announced a tie-upwith South Indian Bank, one of the earliest banks inSouth India to collect insurance policy renewal

payments.Customers of ING Life can now pay their policy renewal premium at any of the 530 South IndianBank branches spread across the country. The tie-uphas added significant strength to ING Life’s service

backbone.

}--- All-women branch launched by South Indian Bank

On the occasion of International Women's Day, privatesector South Indian Bank (SIB) launched an "all-women"

branch in Thrissur, the Cultural Capital of Kerala.

"All women" branch implies that all the employeesworking in the branch would be women. The branch wasformally inaugurated by the wife of noted film actor Innocent, Alice Innocent on March 8th.

The branch will not only be "all-lady managed branch" butalso extend advice and personal guidance to women oninculcating the saving habits.

http://www.rupeetimes.com/banks/south_indian_bank.html

http://www.rupeetimes.com/banks/south_indian_bank.html



}--- South Indian Bank (SIB) Launches "Paperless Flow"Of The Corporate Loan Sanctioning Process For TheFirst Time In The Banking Industry in India

FUNCTIONAL DEPARTMENTS OF HEAD OFFICE

Administrative Dept headed by General Manager Credit Sanctions headed by Chief General Manager Credit Recovery and Monitoring headed by Deputy General

Manager or general Manager Legal Dept headed by Deputy GM

Staff Training College headed by Asst. General Manager Personnel Dept headed by Deputy General Manager Inspection Dept headed by Deputy General Manager Planning and Development Dept headed by Deputy General

Manager Marketing Dept headed by Deputy General Manager Corporate Financial Management(CFM) headed by Deputy GM

Integrated Risk Management Dept(IRMD) headed by GeneralManager Treasury Dept headed by General Manager Dept of Information and communication Technology headed by

Deputy GMInternational Banking Division headed by Deputy GMSecretarial Dept headed by Company Secretary



Awards and Recognition

Award for the best bank in asset quality among all private sector banks in India

The best “Asian Banking Web Site” award from AsianBanking & Finance Magazine

South Indian Bank Bags Special Award from IDRBTfor Banking Technology Excellence

BRAND IMAGE

The incorporation of the new logo onthe Bank's site as well as on the electronic media hashelped to attract the youth into the Bank and therebysubstantially improve the savings deposit base.Bank's website, www.southindianbank.com, is alsoredesigned during the year to make it morecommunicative, informative and educative to thevisitors.



BRANCH PROFILE



South Indian Bank , Coimbatore branch started as anextension counter of Gandipuram branch. At that time only depositfunction take place , no withdrawl. Main purpose of opening thisextension counter was to serve their main customers need namelyCMS school,Ganapathy.So they opened this counter within schoolcompound.They had 5 staff initially namely1 manager,1 assistant manager,2 clerk and1 substaff.

5 years after commencement,it restructured as branch

on November 2000. At that time total staff strength raised to 10

1 Manager 3 Assistant Manager under cash,advance and gold5 Clerk under SB,clearing,deposit,cash and advance1 Sub staff



ACCOUNTS

&

DEPOSIT SCHEMES



South Indian Bank performs mainly 3 functionsnamely Personal , NRI and Business banking. Under this 3 functions bank provides different kinds of products andservices. They are mainly as follows:-

Accounts and DepositsLoansMoney transactionsMutual fundInsuranceNewsValue added services

* PERSONAL BANKING *

Accounts and Deposit:-SIB invite people to begin a relationship with them.

Opening an account with them would be a window to "experiencenext generation banking". With all their branches networked under Core Banking System, SIB assure the latest product offerings, andvalue added services. Main offers are,Savings Account - For routing your personal cash flowTerm Deposits - For high returns on your investments

I) Savings Account :- A Savings Account with SIB allowsyou to route all your personal financial transactions in a secure andconvenient way. With the power of technology based value addedservices, you are never away from your Savings Account. SIBhave different types of Savings Accounts to suit your exact need.

http://www.southindianbank.com/content/viewContent.aspx?linkIdLvl2=11&linkId=21








1) Regular Savings

General Features

• Accounts can be opened in joint names of family members• Helps you and your family to accumulate savings• Cheques, Drafts, Interest warrants, Dividend Warrants etc.

in Indian rupees and foreign currencies can be collectedand credited

• Liberal withdrawal facilities•

No Income tax deduction at source on interest• Standing instruction for remittance of insurance premium,rent and similar payments carried out

• Minimum balance held in the account between the 10thand the end of the month is eligible for interest.

• Nomination facility available

How to open an account

• Download the application form(from the link provided below)

• Fill in the details and sign the form• Proper Introduction (you may contact nearest branch for

more details)• You may bring the filled up form, two passport-size

photographs and documents like Passport/Rationcard/Voter's card/PAN card as proof of address to our

branch.• You may register for the value-added services by filling

up the respective forms



2) Privilege Savings

South Indian Bank's privilege savings account offers the customer multiple advantages over the Regular Savings Account.

Features (in brief)

• Accounts can be opened in joint names• Complete Any Branch Banking Facility• Payable at Par Cheques• International ATM cum Debit Card• Nomination facility available

How to opt for Privilege Facility in your Savings Account

• If you are an existing Savings Account holder, you maydownload the Application form from the link provided

below, fill the same, sign and submit to your branch toconvert your Savings Account to a Privilege Account.

3) Group Salary Savings Account

South Indian Bank's Group Salary Savings Account (GSSA) is for the employees of various business / service enterprises.Thisscheme offers multiple advantages over and above a regular savings account, FREE of Charges!

Features

• Available In 3 Categories To Suit The Requirements Of Every Employee

• FREE Any Branch Banking Facilities.



• FREE Fund Transfer Facilities.• No Minimum Balance Stipulations.• No Charges For Not Maintaining Minimum Balance.• FREE Global ATM Cum Debit Card With Out AMC

Charges.• FREE Usage Of Other Bank's Atms In India.• FREE Internet & Mobile Banking facilities.

4) Junior Savings

With a mission to impart ‘Savings Habit’ among students SouthIndian Bank has come up with this product named ‘SIB JUNIOR ’.This product is an SB account exclusively for students.

• Students having completed 12 years of age with an upper age limit of 23 years are eligible to open a SB accountwith any of our branches.

• Introduction from the Principal / Head Master / HOD &Photo Identity Card are sufficient for opening such anaccount. Usual introduction is acceptable.

• SB account may be opened at least with a minimum cashremittance of Rs.10/-. However, a minimum balance of thea/c is Rs 150/-, has to be maintained within a period of 3months.

• Free cheque books can be issued and free Internet basedfund transfer may be allowed when the account holder attains the age of majority (18 years) and also by keepinga quarterly average balance of Rs.1000/-. Penalty for nonmaintenance of minimum balance will be applicable insuch accounts (Rs.250/- + ST per quarter as on date).

• Free ATM cum Global Debit Card: ATM cum GlobalDebit Card will be issued free of cost.



• Parents can open an ABB account with any of our Branches for easy fund transfer.

• Free fund transfer will be permitted from Parents Accountto SIB Junior Account.

• Bank may consider Education Loans to eligible students .

5) SARAL Savings

Feature

• Eligibility : Individuals in their own name or in joint namesof family members

• Branches authorized to open the accounts : Branchesauthorized to open the accounts

• KYC Norms : Simplified norms are applicable. Introductionfrom another account holder who has been subjected to fullKYC procedure. The introducer's account with the bank should be atleast six months old and should showsatisfactory transactions. Photograph of the customer who

proposes to open the account and also his address needs to be certified by the introducer Or other documents like Passport/Ration Card/Voter'scard/PAN card as to the identity and address of the customer

to the satisfaction of the bank.• Minimum balance for opening the account : Rs.10/- (Rupees

ten only)

• No. of Withdrawls : 20 per half year



• Minors' Account : Permitted

• Issue of Cheque books : One cheque book free of cost

•

Internet Banking/Mobile banking : No• Immediate credit of out station cheques ; No

• Collection of outstation cheques ; Permitted. Usualcollection charges applicable

• Conversion to regular SB accounts : Permitted

• Other conditions : All other terms and conditions relating toSavings Bank accounts are applicable

6) Youth Plus Savings

In a fast developing country like India, the aspirations of the youthare sky high. The young population of our country is the strengthof our country. The recent changes in our corporate identity are intune with the aspirations of today’s youth. The Bank has dedicatedthis year for youth empowerment.

Among various activities, a powerful savings bank product isdesigned exclusively for the youth. South Indian Bank as a techsavvy bank has powered this product with the best technologyfeatures.

The bank with experienced front office staff with the support of latest technology is inviting every Indian youth to join hands withus to enjoy a new banking experience

Features



• Admit age: 20 to 35 years Minimum balance Rs.1,000/-• Free Mobile Banking Service• Free Personalised Cheque Book • Free Usage Of Our Atm Net Work • Free Depository Account Opening• Free Any Branch Banking Facility• Free For Life International Credit Card• Free International Atm Cum Debit Card• Free Internet Banking Facility & Fund Transfer • Free Subscription Of Student’s Economic Forum By E-

Mail•

Preference For Project Work At Bank, Subject ToAvailability Of Seats

How to opt for Youth Plus Facility in your Savings Account

• If you are an existing Savings Account holder, you mayfill Application form , sign and submit it to your branch toconvert your Savings Account to a Youth Plus Account.

• If you are a new customer, you may contact our branchfor opening a Savings Account. You may request for Youth Plus facilities while opening the account.

II) Term Deposits :- Now you can earn a higher income onyour surplus funds by investing in a deposit scheme of your choice.SIB provide security, trust and competitive rate of interest. Andalso have schemes which combine good returns with easy liquidity.

Salient features are,

• Nomination facility is available in respect of all depositaccounts

• Interest upto Rs.10000/- per annum is exempted from TDS



• Loans are available on deposit accounts upto 90% of depositamount

1) Kalpakanidhi

Features

• Reinvestment plan with interest-compounded quarterly• Fixed deposit for periods ranging from 6 months to 10

years• Compounding of interest quarterly - yields higher

effective returns• Provision for automatic renewal at maturity


If you already have a SB or Current account with SIB

• Bring the application form from branch• Filled application forms with SB/CA account numbers

mentioned in the column for introduction is required andno other documnets are required

If you do not have SB or Current account with SIB

• Bring the application form from branch•

Fill in the details and sign the form• Proper Introduction• You may bring the filled up form, two passport-size


branch.





You may register for the value-added services by filling up therespective forms

2) SIB Flexi Deposit

General Features

• A fixed deposit linked to your Savings Bank account.•

Fixed Deposit maintained in units of Rs.1000/-• You can link any fresh flexi deposit to your SB account• Fixed Deposit is broken automatically on a Last In-First

Out basis and minimum units transferred to SB a/c whenthe SB balance falls in deficit.

• Interest is paid out every quarter • TDS applicable

How to open an accountIf you already have a SB or Current account with SIB

• Bring the application form from bank • Filled application forms with SB/CA account numbers


If you do not have SB or Current account with SIB• Bring the application form from bank • Fill in the details and sign the form• Proper Introduction





• You may bring the filled up form, two passport-size photographs and other relevant documents (as instructed by the Branch Manager) to our branch.

• You may register for the value-added services by fillingup the respective forms

3)SIB Tax Gain 2006

Government of India vide reference No.203/2006 dated 28.07.2006has notified the scheme “Bank Term Deposit Scheme-2006”effective from 01.04.2006, which was announced in the recentFinance Budget. For unique identity, we have named the depositscheme as “SIB-TAX GAIN –2006 ".

Features

1.An amount up to Rs.1 lac ( Minimum Rs.100/- and maximumRs.1 lac in multiples of Rs.100/-) deposited in the bank as Fixed /under Compound interest scheme for a period of 5 years is eligible

to be exempted from Income Tax under Section 80C of IT Act,1961.

2. Amount deposited in the name of individual, joint (first nameholder) or HUF (Karta) not exceeding Rs.1 lac in a financial year is eligible for tax exemption.

3. Though nomination can be registered, NO nomination shall bemade in respect of a term deposit applied for and held by or on

behalf of a minor.

4. The rate of interest will be the rate of interest applicable for Fixed deposits with maturity 5 years. Additional rate for senior citizens will be applicable to this deposit also.



5. Deposit can be transferred from branch to branch but not between banks.

6. This deposit shall not be pledged to secure loan or as security toany other asset.

7. This deposit shall not be encashed before the expiry of 5 yearsfrom the date of its receipt.

8. Interest on this deposit shall be liable to Income Tax on the basisof annual accrual or receipt depending up on the simple interest or compound interest scheme and tax on such interest shall be

deducted as usual.Interest rate is subject to change without notice at the discretion

of the Bank.

4) Fast Cash Deposit

General Features

•

Ultra short fixed deposits which allow automatic renewal• Deposit for 30, 46 or 91 days with cumulative or non-cumulative option

• Partial withdrawal permitted while balance continues toearn interest

• Freedom from visiting the bank for renewals-Automaticrenewal facility

• Rate of interest as applicable for fixed deposits of like

durationHow to open an account


• Bring the application form from bank



• Filled application forms with SB/CA account numbersmentioned in the column for introduction is required andno other documnets are required


• Bring the application form from bank • Fill in the details and sign the form

5) Fixed Deposits

Features

• Simple interest will be paid quarterly.• Monthly interest payout scheme is also available at

discounted rate.• For Short/long term investment• Deposits can be made for period ranging from 15 days to

10 years.• Interest can be withdrawn periodically or transferred to

other accounts as per instructions• Can give auto-renewal instructions• TDS applicable



• Bring the application form from bank • Filled application forms with SB/CA account numbers

mentioned in the column for introduction is required andno other documents are required

If you do not have SB or Current account with our bank

• Bring the application form from bank



• Fill in the details and sign the form• Proper Introduction (you may contact nearest branch for

more details)• You may bring the filled up form, two passport-size


branch.

6) Recurring Deposit

Features

• Promotes regular savings - meant for fixedincome/salaried group

• Fixed monthly installment for period ranging from 12months to 120 months

• No income tax deduction at source on interest• High yield


If you already have a SB or Current account with SIB• Bring the application form from bank • Filled application forms with SB/CA account numbers



• Bring the application form from bank • Fill in the details and sign the form• Proper Introduction• You may bring the filled up form, two passport-size

photographs and documents like Passport/Ration



card/Voter's card/PAN card as proof of address to our branch.

* NRI BANKING *

Accounts and Deposit:-

Rich experience serving NRIs, have helped SIB in creating products and services that suit your exact needs. Their wide rangeof accounts and technology based value added services. presents agreat opportunity for you to begin a relationship with them. Inaddition to Savings Accounts, under NRE, NRO category, theyalso offer high return deposit schemes, in Indian Rupees(NRE/NRO) and Foreign Currency (FCNR/RFC). They invite youto open an account with them.

A) NRE Rupee Account

Features

• Accounts can be in the form of Savings or Term Deposit.• Joint accounts are permitted.• Account can be opened by direct remittance from abroad,

transfer from existing NRE, FCNR(B) accounts or withforeign currency note, travellers cheque tendered

personally by NRIs during their visit to India.• Repatriation of credit balance permitted.• No Income tax deduction at source on interest• Balance is exempt from wealth tax and interest earned is

exempt from Income Tax.



• Nomination facility is available

Documents Required for Opening an NRI account

•

Application form duly filled and signed• Copy of latest valid passport• Proof of address and residence like copy of statement of

bank account maintained abroad or a certificate from your employer abroad

• Two passport size photographs• Initial remittance by way of DD issued by a foreign bank

or an exchange company abroad or cheque drawn on a

foreign bank in your country of residence

A-I) Savings Account

A Savings Account with SIB allows you to route all your personalfinancial transactions in a secure and convenient way.

• Can be opened with

•

direct remittance from abroad• transfer from existing NRE, FCNR(B) accounts• foreign currency note, travellers cheque tendered

personally by NRIs during their visit to India.• Joint accounts are permitted.• Residents in India can be authorised to operate the

account for local payments.• Standing instruction for remittance of insurance

premium, rent and similar payments carried out• Minimum balance held in the account between the

10th and the end of the month is eligible for interest.• Value Added Services such as Global ATM-cum-

Debit Card, Internet Banking, Mobile Banking etc.offered Repatriation of credit balance permitted.



• No Income tax deduction at source on interest

Balance is exempt from wealth tax and interest earned isexempt from Income Tax.

You may choose one of the following types of SavingsAccounts. :-

1) SB NRE

Special Features

• Monthly average balance of Rs 1000• Can avail cheque book that can be used locally.

General Features

• Can receive remittances made from abroad (Online/DD)• Can avail value added services such as,

o Global ATM-cum-Debit Cardo Internet Banking Serviceo Mobile Banking Service

• Standing instruction for remittance of insurance premium,rent and similar payments carried out



• Bring the application form from bank • Fill in the details, sign the form and send it to any of our

Branches with the following:

o Two copies of passport size photographso One Photocopy of passport, and



o your first remittance (if online, it can be made after account is opened)

2) SB NRE Privilege

Special Features

• Monthly average balance of Rs 1000 onwards• Payable at Par Cheques that can be presented in any of our

branches• Anywhere Banking Facility

General Features

• Can receive remittances made from abroad (Online/DD)• Can avail value added services such as,

o Global ATM-cum-Debit Cardo Internet Banking Serviceo Mobile Banking Service



How to opt for Privilege Facility in your Savings Account

• If you are an existing NRE Savings Accountholder, you may download the Application form from thelink provided below, fill the same, sign and submit to your

branch to convert your Savings Account to a PrivilegeAccount.



If you are a new customer, you may contact our nearest branch for opening a NRE Savings Account. You mayrequest for Privilege facilities while opening the account

• •

3)NRE SB Privilege Diamond Account

SIB bank launched a new NRE SB Privilege Diamond Accountexclusively for NRI customers. We are offering many facilities andservices like

• Free and Unlimited Any branch banking• Free and unlimited purchase of Draft/ Payment orders• Free and unlimited fund transfer to any other bank

accounts in India• Free international ATM- cum- Debit card• Free withdrawal of cash through other banks ATM's in

India• Free utility payments and E-commerce facility• Free SMS facility

All these features for a monthly minimum average NRE SB balance of Rs. 50,000/-

4)Youth Plus Savings

In a fast developing country like India, the aspirations of the youth are sky high. The young population of our country is thestrength of our country. The recent changes in our corporateidentity are in tune with the aspirations of today’s youth. The Bank has dedicated this year for youth empowerment.



Among various activities, a powerful savings bank product isdesigned exclusively for the youth. South Indian Bank as a techsavvy bank has powered this product with the best technologyfeatures.The bank with experienced front office staff with thesupport of latest technology is inviting every Indian youth to joinhands with us to enjoy a new banking experience.

Features

• Admit age: 20 to 35 years Minimum balance Rs.1,000/-• Free Mobile Banking Service• Free Personalised Cheque Book • Free Usage Of Our Atm Net Work • Free Depository Account Opening• Free Any Branch Banking Facility• Free For Life International Credit Card• Free International Atm Cum Debit Card• Free Internet Banking Facility & Fund Transfer • Free Subscription Of Student’s Economic Forum By E-

Mail• Preference for Project work at bank, subject to availability

of seats

How to opt for Youth Plus Facility in your Savings Account

• If you are an existing NRE Savings Account holder, you maydownload the Application form from the link provided

below, fill the same, sign and submit to your branch toconvert your Savings Account to a Youth Plus Account.• If you are a new customer, you may contact our nearest

branch for opening a NRE Savings Account. You mayrequest for Youth Plus facilities while opening the account.



A-II) Term Deposits

A NRE Term Deposit allows you to earn high rate of interest onyour rupee investments

• Can be opened with

• direct remittance from abroad• transfer from existing NRE, FCNR(B) accounts• foreign currency note, travellers cheque tendered

personally by NRIs during their visit to India.• Joint accounts are permitted.• Repatriation of credit balance permitted.• No Income tax deduction at source on interest• Balance is exempt from wealth tax and interest

earned is exempt from Income Tax.

Loans can be availed against security of NRE Term Deposit.

1)Kalpakanidhi

Special Features

• Reinvestment plan with interest-compounded quarterly• Fixed deposit for periods ranging from 1 year to 10 years• Compounding of interest quarterly - yields higher




General Features

• Principal and Interest can be repatriated• Joint accounts are permitted.• No Income tax deduction at source on interest• Balance is exempt from wealth tax and interest earned is

exempt from Income Tax.

Loans can be availed against security of NRE Term Deposit

2)Flexi Deposit

Special Features

• A fixed deposit linked to your Savings Account.• Minimum period of deposit is 1 year and maximum is 10

years• Fixed Deposit maintained in units of Rs.1000/-• You can link any fresh flexi deposit to your SB account• Fixed Deposit is broken automatically on a Last In-First

Out basis and minimum units transferred toSavings Account when the Savings Account has a deficit.

• Interest is paid out every quarter

General Features

• Principal and Interest can be repatriated• Joint accounts are permitted.• No Income tax deduction at source on interest

Balance is exempt from wealth tax and interest earned isexempt from Income Tax.

3)Fixed Deposits





• Joint accounts are permitted.• No Income tax deduction at source on interest

Balance is exempt from wealth tax and interest earned is exemptfrom Income Tax.

B ) NRO Rupee Account

• Accounts maintained in Indian Rupees for routing bonafide local remittance like rent.

• Joint accounts are permitted.• Interest earned in the account is subject to Indian Income

Tax.• Account can be maintained in the form of Savings andTerm Deposits.

• Restricted repatriation is offered.

B-I) Savings Account

• A NRO Savings Account helps you to route your domestic earnings.



Tax.• Restricted repatriation is offered

1)SB NRO

Special Features

• Monthly average balance of Rs 1000• Can avail cheque book that can be used locally.

General Features





Tax.• Restricted repatriation is offered.• Can avail value added services such as,• Global ATM-cum-Debit Card• Internet Banking Service• Mobile Banking Service• Standing instruction for remittance of insurance premium,

rent and similar payments carried out• Minimum balance held in the account between the 10thand the end of the month is eligible for interest.



NRI Branches with the following:

o -Two copies of passport size photographso -One Photocopy of passport, and your first remittance

2)SB NRO Privilege

SIB NRO privilege offers the customer multiple advantages over the Regular Savings Account.

Special Features• Monthly average balance of Rs 5000• Anywhere Banking Facility• Issuance of a Photo Identity card that doubles up as debit

card (as prescribed) for all account holders.



• Can avail payable at par cheque book that can be presented in any of our branches

General Features



Tax.• Restricted repatriation is offered.• Can avail value added services such as,

o -Global ATM-cum-Debit Cardo -Internet Banking Serviceo -Mobile Banking Service





NRI Branches with the following:

o -Two copies of passport size photographso -One Photocopy of passporto -Your first remittance

B-II)Term Deposit



SIB offer high returns on your NRO term deposits.So Invest your funds in NRO term deposits, and get the maximum yield on your hard-earned money.

1)Kalpakanidhi

Special Features

• Reinvestment plan with interest-compounded quarterly• Fixed deposit for periods ranging from 6 months to 10

years• Compounding of interest quarterly - yields higher


General Features


•

Joint accounts are permitted.• Interest earned in the account is subject to Indian IncomeTax.

• Restricted repatriation is offered.

2)Flexi Deposit

Special Features

•

A fixed deposit linked to your Savings Bank account.• Fixed Deposit maintained in units of Rs.1000/-• You can link any fresh flexi deposit to your SB account• Fixed Deposit is broken automatically on a Last In-First

Out basis and minimum units transferred to SB a/c whenthe SB balance is in deficit.



• Interest is paid out every quarter

General Features

•

Accounts maintained in Indian Rupees for routing bonafide local remittance like rent.• Joint accounts are permitted.• Interest earned in the account is subject to Indian Income

Tax.• Restricted repatriation is offered.

3)Fast Cash Deposit

Special Features

• Ultra short fixed deposits which allow automatic renewaland also withdrawal of part of the deposit

• Deposit for 30, 46 or 91 days with cumulative or non-cumulative option

• Partial withdrawal permitted while balance continues toearn interest

• Freedom from visiting the bank for renewals-Automaticrenewal facility

• Rate of interest as applicable for fixed deposits of likeduration

General Features



Tax.• Restricted repatriation is offered.



4)Fixed Deposits

Special Features

•

Simple interest will be paid quarterly.• Monthly interest scheme is also available at discounted

rate.• Deposits can be made for period ranging from 15 days to

10 years.• Interest can be withdrawn periodically or transferred to

other accounts as per instructions

General Features



Tax.• Restricted repatriation is offered

5)Recurring Deposits

Special Features

• Remittance as monthly instalments over a period of time.Amount remitted plus interest will be paid on Maturitydate.Monthly fixed savings

• Promotes regular savings - meant for fixedincome/salaried group

• Fixed monthly installment for period ranging from 12months to 120 months

• No income tax deduction at source on interest

General Features





Tax.• Restricted repatriation is offered .

C)Foreign Currency Deposits

SIB offer you protection against currency exchange ratefluctuations, through our Foreign currency denominatedaccounts.You earn high returns for different maturities.

• Accounts are maintained in foreign currencies• High rate of returns

C-I) Term Deposits- FCNR

Our Foreign Currency Deposits, have always been offering highrate of returns.

•

Foreign Currency accounts in GBP (British Pound), USD(American Dollar) and EURO may be maintained.• High rate of returns• Accounts can be opened for various maturities• The investment is insulated against exchange rate

fluctuations.• Balance and interest is repatriable.• Joint accounts are permitted.•

Rupee loan can be availed against deposits.1)Kalpakanidhi

Special Features

• Reinvestment plan with interest-compounded half-yearly.



• Fixed deposit for periods ranging from above 12 monthsto 5 years

• Compounding of interest yields higher effective returns

General Features

• Foreign Currency accounts in GBP (British Pound), USD(American Dollar) and EURO may be maintained.

• High rate of returns•

Accounts can be opened for various maturities• The investment is insulated against exchange rate

fluctuations.• Balance and interest is repatriable.• Joint accounts are permitted.

2)Platinum Kalpakanidhi

A new FCNR deposit scheme in US Dollar, Euro and GBP, withone year forward booking facility.

1. Eligible Persons : Non-Resident Indians

2. Denominated Currencies : US Dollar, Pound Sterling, Euro

3. Minimum Amount of deposit : 5000 units in each currency

4. Period of deposit : One year and One day

5. Forward booking : Depositor to cover the deposit under aForward booking for the deposit period by a written request.

Nominal forward booking charges to be paid.



6. Premature closure of deposit : In case of premature closure of the deposit, the cost of cancellation/charges of the forward contractwill be recovered from the depositor.

7. Loans against the deposit : No loan is permissible against suchdeposit

8. Payment on the Due Date : The maturity proceeds of thedeposit will be converted in to Indian Rupees at the contractedforward rate and the Rupee amount will be credited to thedepositors NRE/NRO SB account.

9. Roll over of the deposit : Roll over of the deposit under FCNR/FCNR PLATINUM will be allowed.

SIB are presenting this deposit product to NRIs, to avail analternate deposit option, as the denominated currencies will

provide an additional return by way of forward premium prevailingon the date of deposit in addition to the usual FCNR interest. As ondate, the effective return under this scheme is more than theFCNR/NRE deposits and the benefit of the scheme is depending onthe forward premium available on the date of deposit.

3) Fixed Deposits

Special Features

• Simple interest will be paid quarterly.• Deposits can be made for period ranging from 1 year to 5

years.• Interest can be withdrawn periodically or transferred to

other accounts as per instructions

General Features



• Foreign Currency accounts in GBP (British Pound), USD(American Dollar) and EURO may be maintained.

• High rate of returns• Accounts can be opened for various maturities• The investment is insulated against exchange rate

fluctuations.• Balance and interest is repatriable.• Joint accounts are permitted.

C-II) RFC Account

A person of Indian Origin who returns to India for permanent

settlement after a stay of minimum period of one year abroad iseligible to open RESIDENT FOREIGN CURRENCY(RFC) account.

• Accounts can be maintained in USD, GBP and EURO.• Assets acquired or held at the time of return are eligible

for credit to RFC account. For Example: Funds in bank account outside India, Income such as dividend, interest,

profit earned on assets abroad, sale proceeds of eligibleassets, pension and other monitory benefit received fromoutside India arising out of employment taken up abroad,foreign currency notes, travellers cheques brought to Indiaat the time of return and balances in NRE/FCNR(B)accounts.

• The balance can be repatriated or credited to NRE or FCNR(B) accounts, if the account holder becomes an NRIsubsequently.

• Balance in the accounts can be used for bona fideexpenses like traveling expenses for going abroad,children’s education abroad etc.

• No loan is available against RFC account.

1)Kalpakanidhi



• Reinvestment plan with interest-compounded half-yearly• Fixed deposit for periods ranging from above 1 year to 3

years• Compounding of interest half-yearly - yields higher

effective returns

General Features

• A person of Indian Origin who returns to India for permanent settlement after a stay of minimum period of one year abroad is eligible to open RESIDENT FOREIGNCURRENCY (RFC) account.


for credit to RFC account.• The balance can be repatriated or credited to NRE or

FCNR(B) accounts, if the account holder becomes an NRIsubsequently.

• Balance in the accounts can be used for bona fideexpenses like traveling expenses for going abroad,children’s education abroad etc.

• Loans are not permitted against RFC account.

3)Fixed Deposits

Special Features

• Simple interest will be paid quarterly.• Deposits can be made for period ranging from 1 year to 3

years.

General Features



• A person of Indian Origin who returns to India for permanent settlement after a stay of minimum period of one year abroad is eligible to open RESIDENT FOREIGNCURRENCY (RFC) account.


for credit to RFC account.• The balance can be repatriated or credited to NRE or

FCNR(B) accounts, if the account holder becomes an NRIsubsequently. Balance in the accounts can be used for

bona fide expenses like traveling expenses for goingabroad, children’s education abroad etc.

• Loans are not permitted against RFC account.

* Business Banking *

SIB offer different types of Business Accounts such as CurrentAccount, Overdrafts(OD), Cash Credits(CC) and MercantileCredits. These accounts allow you the convenience of conductingday-to-day banking operations, in addition to offering workingcapital credit requirements.

A) Normal Accounts

SIB offer different types of Business Accounts such as CurrentAccount, Overdrafts(OD), Cash Credits(CC) and MercantileCredits. These accounts allow you the convenience of conducting

day-to-day banking operations, in addition to offering workingcapital credit requirements.

A normal business account takes care of your day-to-day financialactivities.We offer:



• Unlimited transactional facilities• Cheque Book facility• Deposit cash to your account from any of our branches• Make balance inquiries• Get statement of accounts• Get Demand Drafts/Banker’s Cheques• Free Collection of local cheques/demand drafts• Quick Collection of outstation cheques/demand drafts at a

nominal fee• Quick money transfer facilities from/to your account• Bouquet of Value added services offered

B)Premium Accounts

You get the freedom of Any Branch Banking in your accounts, while opting for a Premium Account. The Premiumaccount can be a Current Account, Overdraft Account (OD)or Cash Credit Account (CC).

-In case of Current Accounts, you can choose your Premium

Account category which ranges from a minimum of Rs 5000.

-In case of OD and CC accounts, the minimum eligibility for Premium Account is a sanctioned overdrawal limit of Rs 2lac.

In a Premium Account we offer:

• Unlimited transactional facilities• Payable at par Cheque Book facility• Complete anywhere banking facilities including cheques,

cash deposit



• Separate Premium Categories such as General, Standard,Silver, Gold and Platinum which can be chosen as per your requirement (applicable to Current Accounts)

• Instant Money Transfer facilities• Balance Inquiries• Statement of accounts• Allows instant fund transfer from one account to another • Get Demand Drafts/Banker’s Cheques• Collection of local/outstation cheques• Bouquet of Value Added Services

How to opt for Premium Facility in your Business Account

• If you are an existing Business Account holder, you maydownload the Application form from the link provided

below, fill the same, sign and submit to your branch toconvert your Business Account to a Premium BusinessAccount

• If you are a new customer, you may contact our nearest branch for opening a Business Account. You may request

for Premium facilities while opening the account.



CHAPTER: 1HAPTER: 1

ANALYSIS



ACCORDING to CUSTOMER PREFERENCE

Customers prefer different type of deposits according to their needs.Some prefer demand deposit, some other prefer currentdeposit and so on. Different age group prefer different type of deposits. They are as follows:-

Students (12-23 years of age):-They prefer to use SIB junior a/c because it helps to increase

their savings habit. Main reason is that it requires only Rs.10 toopen the account and minimum of Rs.150 has to be maintained.More over it offers ATM card and cheque facility.

Youth (20-35):-People within range of 20 to 35 years prefer youth plus

savings and more over bank take this year as year for youthempowerment.

Senior citizen:-This range prefer to get fixed income every month without loss

their investment. Usually retired people use fixed deposit, SIB taxgain 2006 or fixed deposits.

Employees:-



They are regular income earning people. They prefer to investfixed amount in fixed intervals usually monthly basis. So they

prefer to use Recurring deposit. Non residentials :-

They prefer to use NRI banking scheme.

ACCORDING to Current scenario

decreasing interest rate

Now a days demand for deposits diminishing. In my opinionmain reason behind it is change in interest rate. For a long periodthere is only a slight change occurs. But during these days it is notlike that. It shows a diminishing pattern . So people are not readyto make investments in deposits because there are other source toinvest and that source can yield more than that.

bank promote loan schemes

Financial crisis affect banking industry a lot. So they decided totake a policy of increasing credit facility to customers.

All these are the main things which leads to reduce

use of banking deposit schemes.





CONCLUSIONCONCLUSION

The Indian banking industry is at the crossroads: on the

one hand, opportunities are emerging in the developed markets,

while on the other, the domestic market is becoming increasingly

challenging one.

Since banking is one of the fastest growing industry, itwas a very fruitful experience to be part of an organization that is

growing at very fast pace . Their integrated, dedicated and sincere

effort is showed in their annual turnover which increases in each

financial year, thereby making them one of the toughest

competitors in the Asian banking industry.

This analysis helped me a lot to know the problems faced

by bank in this scenario and also the effects made by the financial

crisis problem. My domain knowledge has also increased as I was

able to put the theoretical knowledge into practical use.

