Vijaya Bank

A study on the deposit schemes at Vijaya Bank
Chapter – I
Introduction
In an organization there will be a normal of activities carried on like
production, Marketing, planning, financier etc., among all these faineances
plays a major role, Which made to study on this.
Finance came to studied as a part of Economics before the turn of the

present category formation of large sized undertakings by consolidating the
smaller ones brought before the Managements the problem of financing to
these enterprises.
The study of potentiality of different securities as a source of procuring

funds form out side world & the role & function of institutional agencies
continue to be emphasized during 1921.
The problem of financing ensured a new dimension in the IInd world
war.
In 1940’s financial wizards continued to be concern with the necessity for
choosing sells a financial structure as would be able to with stand stress &
strains of the part war adjustments.
In 1960’s & 70’s period was marked by a very faithful & exciting Era
for a nor of alternative developments. The financial manager started thinking
on such important issues. As aggregate stock prices, business sale & etc.
Vishnupriya College of Management studies 1

The dimension of Business financial that was Earlier limited to period

but in recent years broadened according today-to-day operations.
Finance is regarded as lifeblood of an Enterprise. This is because in the

modern money oriented of all Economy finance is one of the basic
foundations of all kinds of economic activities. It is the master key. Which
provides accedes to all sources for being employed in manufacturing
activities. It has been rightly said that business needs money to make more
money, however, it also true that money begets more money only when it is
properly managed: there fore efficient management of every business
enterprise is closely linked with efficient management of its finance.
Meaning: Business finance explains the two terms . They are

“Business “ & “ Finance “. In common speaking the word “Business” is used
to denote merchandising the operation of some sort of a shop or store. Large
or small. It is however giving too narrow.
Definitions: According to Bonneville & Dewey = “Financing consists in the

raising providing & managing of all the money or funds of any kind used in
connection with the business.
According to Prather & wert, “Business Finance deals

primarily with raising administrating & distributing funds by
privately owned business units operating in Non – financial fields of
Industry.

Function of Business Finance:
Finance function can be classified into two types
 Recurring finance function

 Non- Recurring finance function
1. Recurring function: Recurring finance functions Encompassed all

such
Financial activities as are carried out regularly for the efficient conduct
of a firm planning of funds. Placing of funds, allocation of funds,
income & controlling the uses of funds are the contents of recurring
finance function
 Planning for funds

 Rising of funds
 Allocation of funds
 Allocation of income
 Control of funds
Non-recurring functions: It refers to the use of functional activities that a
functional activities has to prefer very infreavently, preparation of financial
plant at the time of promotion of the company. The Financial readjustment in
time of liquidity crisis, valuation of the firm at the time of merger Success full
handle of such problems requires financial skills & understanding of principle
& techniques of finances recurring to Non – recurring Situation.

Introduction to Banking
The financial sector plays a major role in the Mobilization & allocation
of financial savings. Financial institutions. Instruments & markets & which
constitute the financial resources from the net savers to net borrowers, the
gains to the real sector of the economy. There fore, depend on how efficiently
the financial sector performs this basic function of intermediation so that the
transaction cost is kept minimum. The banks form the most important
segment of the financial sector. Deregulation of the banking industry through
the abolition of the administrated rates for the deposits & loans gave the
banks the freedom in fixing prices for their products to compete effectively
with Non – bank intermediaries, the banks were permitted to undertake newer
activities live investment banking. Securities trading & insurance business
through on selective basis. The banks were forced to pay maximum attention
on to operational efficiency so that their transactions costs remained at the
Minimum.
Induction of information technology & communications Networking

system is set to change the operating environment of banks drastically.
Technology has already enabled some of the banks to introduce innovation
product to their customers in the from of ATM facility, tale banking & home
banking any time & anywhere banking.

Origin of the word “bank”: - Opinion is not uniform with regard to

the origin of the word “bank”. According to some authors, the word “Bank” is
derived from the words “Banc us” or “Banquet” that is a bench. The early
bankers the Jews in Italy transacted their business on benches in the market
place, when a banker failed his “Bench “ was broken into pieces by the people
which indicated the bankruptcy of the individual banker. But this explanation
was turned out on the ground that the Italian money changers as such were
called bankers in the middle ages. Some others say that the word bank
originally derived from the German word “pack; meaning a Joint stock fund,
which was Italians into ban co when, the Germans were masters of a great
part of Italy according to professor Ramachandra Rao “What ever to the
origin in of the word bank, it would trace the history of banking in Europe
from the Middle Ages.
Bank: A bank is an institution, which deals with money. It means that a

bank recives money in the born of deposits from public & lends money to the
development of trade & commerce.
Prof. Hart says that banker is one who in he ordinary course of his
business. Receives money which, He repays by honoring the cheques of
persons from whom or on whose account he receives it.
Professor Kinely defines a bank as an establishment, which makes to

individuals such advance of money, as may be required, and safely made & to
which individuals entrust money, which it is not required by them for use.

The Indian companies Act defines the term bank as “The accepting for
the purpose of lending or investment of deposits of money from the public
repay able on demand or other wise & withdrawal by cheque, draft, & order
or other wise
Classification of bank:-
 Commercial bank
 Investment or Industrial Bank
 Exchange Bank
 Co-operative Banks
 Land development Banks
 Saving Bank
 Central Bank
1. Commercial Bank: Commercial banks perform all the business

transactions of a typical bank Commercial banks accept three types of
deposits. The savings Bank deposits, fixed deposits & current deposits. They
accept these deposits, which are repayable on demand or on short notice. As
such, they send or invest only for shoot durations. They provide funds only
short term funds of trade & commerce. The commercial banks confine their
activities to day –to-day functions of trade & industry. Since the commercial
banks are expected to meet immediate requirement of depositors, they cannot

invest creditors & our drafts. The commercial banks render an important
service by providing to its customers a simple means of exchange
Functions of commercial bank are:
1. Receiving of deposits 2. Lending of funds
3. Investment 4. Creation of Money.
2. Industrial banks or investment banks: Investment Banks are

provides fixed capital or long term loan to industries. As they finance
industries they are called industrical banks. They are also called
investment banks as they invest their funds in subscribing to the shares
& debenture of industries.
The main functions of industrial Banks are :

1. They grant long term loan to industries.
2. They subscribe to the share capital & dentures of
industries.
3. They under write shares & debentures
4. Provide technical assistance
5. Participating in the management by having their
representatives in the board of industry
6. Advice the type of industry to be set up
7. Providing guidance to their customers regard to
purchase & scale of share & debentures
8. Advising the government on matters relating to
industries

3. Agricultural Banks: These are the banks provide finance to

agriculture. As they finance agriculture mainly they are called
agricultural Bank.
Agricultural Banks are in our country based on co-operation

system
They are of 2 types.
1. Agricultural co – operative banks
2. Land development banks.
1. Agricultural co-operative banks land development banks.

The farmer, provides shooter finance to purchase
fertilizers, pesticides, seed & the payment of cages where
as the later provided long term finance to the farmers to
purchase agricultural machinery installing pump set,
improving plants, repayment of old debts, construction of
Irrigation work ele.,
2.Land development banks: LDB's are those banks which
provide finance to the poor people who are having no
land , who are willing to take land's by providing some
finace.

4. Exchange Banks: These are the banks finance mainly the foreign
Exchange business of a country they are called exchange banks because
they finance mainly for the foreign exchange business the main
functions are:
1.Purchasing discounting, export & import of bills
2.Collecting exports Bill of exchange on behalf exporters
3.ccepting Bill of exchange on behalf of Importers
4.Provides necessary trade information to both
5.Provide remittance facility not only to the business men but
also to the tourists
6.They purchase & sell god silver & foreign currency.
5. Savings bank: These are special banks specialize on the Mobile

Station of small savings of middle & low-income groups they are called
savings bank because they are concocted as mobilization of small
savings. In our country the business of selling banks is formed by
commercial banks & post office the principle function are: Mobilizing
small & scattered savings of people promoting the habit of thrift [loess
spending expenses & savings]
Investing major portion of their deposits on government

securities.

6. Central Bank: A central bank is the highest bank & monetary

Institution of a country it operates under the control of state & works
for the promotion of monetary & Economic stability of the country the
main functions are
a. It has monopoly in issuing currency notes
b. Acting as a banker to government
c. Serving as bankers bank & Acting all controller of
credit
d. Acting as custodian of nations gold & foreign
7. Mixed banking: Mixed banking is the system under with the

commercial banks provide shorterm & long-term finance to industrial
concern Here the commercial banks mix or combine the commercial
banking & industrial or investment banking functions.
Commercial Banks: Commercial banks are banks, which accept

deposits from the public & lend them mainly to commerce for short
periods. As they finance mainly commerce, they are called commercial
banks.
Commercial banks are found all over the world & they
dominate the banking system in every country.

Functions of commercial banks: The functions of commercial banks are

numerous they can be broadly divided into two types
1. Primary function
2. Secondary function.
Primary Functions:
The primary function of commercial bank are :
 Receiving of deposits
 Lending of funds
 Investment of funds on securities
 Creation of Money
1. Receiving Deposits: Deposits constitute the main source of funds for

Commercial banks. Commercial bank receives deposits form the
public on various accounts. The main types are:
 Current Accounts
 Savings deposit Account
 Fixed deposit account
 Recovering deposit account
2. Lending of funds: Lending of funds constitutes the main business

commercial bank. The major portion of the funds of commercial bank

is employed by way of advances. As advances from the chief source of

profit for banks.
Bank lends funds to the public by way of:
 Loans
 Occur drafts
 Cash credit
 Discounting of bills
3. Investment of funds on securities: They invest considerable amount

of
their funds in government & industrial securities. In India commercial
banks are required by statute to invest a good portion of their funds in
government & other approved securities.
Creation of Money: Commercial banks not only receive deposits from

the public & lend them to needy. But also create money.
In the process of lending funds they lend many times more than
the cash deposits. They receive from public
Secondary Function:
A part from performing the main fictional of accepting deposits &
granting advances a banker performs a number of subsidiary services banker
will be able to earn the good will of his customer & attract fresh customers.
The secondary services of a banker may be divided into two classes:

 Agency services
 Miscellaneous services
Agency services:
1. Collection of money on behalf of customers: A Banker undertakes
to collect money on behalf of his customer. He collects crossed &
uncrossed cheques & bank drafts on behalf of the customers &
credits the proceeds to the customers.
1.
2. Making the payment on behalf of customers: A banker under
takes to make payment on behalf on his customers. He pays the bill
of exchange & promissory. Notes on behalf of customers.
3. Purchase & sale of securities on behalf of customers:

As a banker has contact with stockbrokers & as the customer,
generally, not conversant with the procedure for buying & selling
securities in the stock exchange, the banker under takes to buy &
sell securities on behalf of the customers through stock brokers.
4. Advising customers regarding stock exchange investments:

A banker advises his customer regarding investment on stock
exchange securities. When advice sought by the customers
5. Arranging for Remittance of funds on behalf of customers:

A banker arranges for remittance of funds from one place to another

on behalf of their customers by means of bank draft, mail transfer
& telegraphic transfers.
6. Issuing of credit cards; Banks also issue credit cards to their

customers for making purchase & shopping . The credit card facility
Receives the credit card holder from the trouble of carrying cash for
making purchase further, it minimizes the risk of loss of cash. It also
has ATM centers in major cities which provide to his customer 24
hours banking facilities.
7.Acting as trustee, executor, administrator & Attorney of

customer:
Banker acts as a trustee executor, administrator & attorney of
customer
8 Serving as correspondents & representatives of customers:

A banker serves as a correspondent & a representative of his
customers. As a correspondent & a representative of a customer.
The banker prepares income tax returns of the customer.
Corresponds with the income tax authorities on behalf of the
customers.
9. Rendering merchant banking facilities:

Big commercial banks have set up merchant banking division

manned by qualified staff to perform merchant banking facilities to
commercial & industrial houses
2.Missellaneous services:
Services rendered by a banker not only to his customer, But

also to the general public, some of them are :
 Receiving valuables & securities for safe custody
 Helping foreign trade transaction
 Issuing of traveler’s letter of credit, & traveler’s cheque
to the travelers & tourists
 Acting as referee regarding financial standing of his
customers
 Under writing of shares & debentures
 Entrepreneur development programs
Deposit:
Referring to banks, professor ” sayers “have said that bank is a not only
dealer in money but also manufacture of credit money. It is in the sense of
manufacturing that the concept of credit creation is used. The banks
cannot create any money. But they can create money through deposit
creation.

Deposit creation is an important function of commercial banks without

deposits. They cannot lend at all. Deposit creation is by two types. When
the bank receive cash form the customers. Deposits are created. This
deposit may be savings bank deposit or current deposit any amount
deposited in these accounts could be withdrawn by issue of cheques.If
there is no limit for with drawl. Then that deposit is called current account.
If there is any restriction for withdrawal. Then it is called saving bank
account savings deposits may be of several types such as fixed deposit,
recurring deposits etc current deposit are used for payments that may arise
in future. In the case of current deposits the depositor wants the bank to
offer facilities to withdraw in the form of cheques as many times as
possible. In the savings bank account, the depositor does not expect these
facility , but expert compensation in the form of interest.
The Bank attracts deposits from the people either by means offering
interest or other facilities. Business people want facilities with drawl more
than interest. Non-business people opiate savings account. A customer
may open any type of account. If he opens a current accounts & if there is
substantial money in that account. He may transfer money from current
account to the savings account & vice versa. The bank has nothing to do
with this behaviors of the customer.
Meaning of Deposit : Deposits represents the amounts accepts by a bank

from the deposits. It is the most important intern on the liability side
because
1. They are major portion of the funds received by a bank

2. The capacity of a bank to earn profits depends on the volume of

deposits
3. The efficiency of a bank is judged by its ability to attract deposits.
Primary And Derivative Deposits:

Deposits may be created in two ways. When the customer tenders cash
into the bank, then the deposit account is opened & the amount is credited to
his account. It is called primary deposit. Using this cash the bank buys various
assets in the form of short term bills of exchange securities. Share & stocks or
it may lend in the form of cash credit to the industries. While buying these
assets or lending money to the business people, cash is not given to them but
demand deposit are opened, these deposits are called secondary deposits or
derived deposits. If the banks have to create demand deposits. Existence of
primary deposit is essential. The initiative of creating such deposits lies with
the banking system. The banks may either create of May not create such
deposits. If the banks find that there are sufficient short term bills of
exchange. Then they may show interest in creating these deposits. The cash
received in the form of savings deposits will be used by the banking system to
create derived deposit They are called derived deposits because they originate
from the primary deposits. These derived deposits also add to money supply.
Types of Accounts, which are Held in Bank

1. Current deposit account: [Current or Running account}

A current account is an account, which is generally opened by business
people for their convenience. Money can be deposited & withdrawn at any
time. Money can be withdrawn by means cheques. Usually, a banker does
not allow any interest on this account. Even then, people come forward to
deposit money on current account because of two important privileges, which
they can enjoy in a current account Namely:
1. Over draft facility
2. Other facilities like collection of cheques. Transfer of
money & rendering agency & general utility services.
That is why current account holder do not mind a banker chagrin some
commission for services rendered & incidental charges for maintaining
the account whether it is in debit or in credit. Even though a banker
does not allow any interest, he charges interest on overdraft on a day –
to – day basis. In bank of Maharashtra US. United constructions co &
others, it was held that when a customer over-draw the account with or
without express consent, it amounts to a loan & the customer is around
to make good the payment with a reasonable interest.
current Account holders should keep a minimum balance of
Rest 500/- to keep account running. In a mechanized branch, a
minimum balance of Rs 5000 has to be maintained. If this minimum is
not kept, a minimum charge of Rs 11/- per operation will be debited to
the account. The bank sends a statement of account to the customer
every month. As these deposits are repayable on demand. The banker

should keep a large cash reserve. This may be one of the reasons why a
banker does not pay any interest on the current deposit.
2. Fixed Deposit Account: A fixed deposit is one, which is repayable after

the expiry of a predetermined period fixed by the customer himself. The
period varies from 15 days to 3 years. A deposit account can be opened for a
period of more than 3 years & in that case the rate of interest remains the
same level. In England these deposits are not repayable on demand but they
are with draw able subject to a period of notice. Hence, it is popularly known
as “Time Deposit “ or time liabilities. In India also, the banks have began to
call it “term Deposit” Normally the money on a fixed deposit is not repayable
before the expiry of a fixed period.
3. Saving Deposit: This deposit is intended primarily for small-scale

savers. The main object of this account is promotion of thrift. Hence there is
restriction on with drawals in a month. Heavy with drawals are permitted
only against prior notice, generally, the number of with drawals permitted is
50 per half year.
This account can be opened with a minimum of Rs5/= some
banks live state bank of India keeps it as Rs 20/-.
The minimum balance is not maintained, incidental charges will
be levied at the rate of 50 paise per kolio with a minimum of Rs 1 / - &
a maximum of Rs 5/-

It carries an interest rate of 4 % from April 2000 PA Interest is

allowed on minimum monthly balance in steps of Rs. 10/- multiples
there of between the 10th & the last day of each calendar month.
Generally, overdraft facility is not available in the savings Bank
Account, How ever, instant credit facility unto Rs 2500/- only is
available to savings bank customers for their outstation cheques
provided such cheques do not arise out of trade transactions.
The depositor is supplied with a pass book generally no with
drawals are allowed without the presentation of pass book along with
the withdrawn slip. Now –a –days savings account holder are given
cheque facilities & money can be withdrawn by means of cheques
also. Cheques are also collected on this account. The nomination
facility is also available on savings bank account.
4. Recurring Deposit: It is one form of savings deposits depositors save &

deposit regularly every month a fixed installment so that they are assured of
the sizeable amount at a later period. This will enable the depositors to meet
contingent expenses. Banks have found this deposit popular. Many people
would not have saved If these deposits had not been introduced. This deposit
works on the” maximum little drops of water make a big ocean.”
Any person can open this deposit account. He can even have
than one account at a time. This account can be opened in joint name
also.
For deposit of higher installment, the maturity can be
Calculated as multiples of maturity amount for an installment of Rs5/-

Chapter – 2
Research design
Introduction: -
A research design is a plan of action to be carried out in

connection with a research project. The design may be a logical presentation
of the various steps in the process of research. These steps include The
statement of problem , Objectives of the study, Scope of study sampling,
tools & techniques of data collection, Plan of analysis limitation and chapter
schemes.
According to Claire sleets & others “A Research design is a

arrangement for collection and analysis of data in a manner that aims to
combine relevance to the research purpose with economy in procedure.
The study has been undertaken on "the schemes of Deposits at

VIJAYA BANK " the objective of this study envisages on deposits
management on loan portfolio of the bank. Also an attempt has been make to
identify the techniques and suggest stratagies for arresting the existing

deposits and prevent the re- emergence of fresh deposits at the VIJAYA
BANK.
Title of study:
“A Study on the deposit schemes at Vijaya bank”.
Statement of the problem:

In the present scenario, the banks are playing an important role in the
Economic development of our country as they helps in encouraging the
people to make savings. These savings are attracted & made to deposit in the
banks for further productive investment. For the purpose of this the bank has
introduced many deposit schemes according to the convenience of people
based on the different categories. So, it is felt very much essential to make a
study on these deposit schemes that how it influences on the development of
Economy & what are the conditions & terms that are to be fulfilled to make
the deposits under various schemes.
Objectives of the study:
1. To ascertain the problem faced by bank by Public regarding Deposit

2. To know the different schemes of deposits provided by Vijaya bank.
3. To know the methodology used by bank to Mobilize deposit from
public
4. To suggest ways & means of developing the deposit schemes.

5. To know the interest rate & other facilities provided

by bank to deposit holders
6. To study & know the financial problem of Bank
7. To provide manager with report to help them to Encourage
Customers for depositing.
8. To come out with the findings & suggestions
Scope of the study: In today’s world, banking services plays on important

role in every lives of individuals. The technological advancements in the
banking sector have grown rapidly in the last years. This has led to the birth
of new generation banks & competition. The study basically focuses towards
the observation of the operations & performance of Vijaya Bank regarding
deposits. The study with in its scope has tried to find out the new trends
promoted by the Vijaya Bank regarding deposits.
This study attempts at understanding how Vijaya Bank functions in its

changing scenario & how each department at the head office contributes to
the success.
From the management point of view the study helps them to know
whether they are successful with their operations & as management student
this study helps in getting birds eye view of latest development & upcoming
changes in Banking sector.

Methodology: Personal interview was adopted for collecting data

from Vijaya Bank regarding deposits schemes for collecting primary data and
secondary data is collected through the following
1. Financial Books
2. Annual reports
Tools & the techniques of data: Analysis & interpretation of data in based
on both primary & secondary data.
Primary data: Primary data are the first hand information collected, through
various methods such as observation, interviews.
Secondary data: Secondary data are obtained from text books, magazines,
news paper & Annual reports & Broachers of the bank & official website.
Limitation of study:
Every efforts has been made to make study complete & has
exhautsive as possible, however the study is not free from certain limitations.
1. Some times respondents dislikes to discuses regarding data collection.
2. Time limit for the study
3. The study is only confined to Vijaya Bank & the performance of other
banking company is not compared with it.
4. The collected information is limited & factual to some extent since
some information is confidencial & Bank opposed to dispose it .

5.The Exhastive study has not been made on Vijaya Bank & is limited
to the partial fullfillment for the degree of B.B.M.
6. Collection of data & study was based purely on observation of the
operation of Vijaya Bank constraint.
Plan of Analysis
The Analysis has been done with the help of scheme of deposits related
to vijaya bank for the past 3 years.

Chapter overview scheme

Chapter-1
Introduction: - It consists brief information about finance, banking and
deposit schemes.
Chapter-2
Research design: - It consists brief information about the design adopted
in preparing the project
Chapter-3
Industry profile: -It consists brief information about the banking
Chapter-4
Company profile: -It consist information about vijaya bank
Chapter-5
Analysis and interpretation: - It consist information about deposit
schemes

Chapter-6
Findings, recommendations and conclusions: - It consist findings,
recommendations for the findings and conclusions
Bibliography: -
Annexure :-
CHAPTER- 3
PROFILE OF THE BANK
Banking has existed ever since man-made money. Money lending,

which is one of the important function of banking is existed even than.
However, the function of the banking is not more about just money
lending it’s about deposits interest rates locker systems etc.
The banking system in our country comprises three constituents public

sector banks, private sector banks & foreign banks, there are 27 public
banks, accounting for 81% of the total of all banks.
We have private sector banks, whose role has considerably narrowed
down after two-step nationalization. The number of private banks stood at
34 as on 31st March, 1999 4172 branches.
Foreign banks in private sector are branches of banks incorporated
outside India. There are 44 such banks with 180 branches on end March
1999.

The Indian commercial banks have played a significant role in the

economic development of the country. Be it branch expansion, deposit
Mobilization credit expansion, Minimizing regional imbalances or
promotion of new entrepreneur ship . The role of commercial banks is
considerable . There are short comings nevertheless. For e.g., The
banking services have not reached all parts of the country, loan recovery
has become a big problem for banks in efficiency & customer complaints
are common in banks & losses have become a way of life. Banks often
find it difficult to strike a balance between their commercial compulsions
& social obligation.
History of Banking:
Bank of Hindustan, setup in 1870, was the earliest Indian Bank,
banking in India on Modern lines started with the establishment of three
presidency banks under presidency banks act in 1876 i.e. banks of
Calcutta, bank of Bombay bank of madras. In 1921, all presidency banks
an alga mated to form the imperial bank of India. Imperial bank of carried
out limited central banking functions also prior to establishment of RBI. It
engaged in all types of commercial banking business except dealing in
foreign exchange.
Reserve Bank of India act was passed in 1934 & Reserve bank of India
was constituted as an apex bank with out major government ownership.
Banking regulation act was passed in 1949. This under government
control, under the act RBI got wide ranging powers for supervision &

control of banks. The act also vested licensing powers & authority to
conduct in- sections in RBI.
In 1955, RBI acquired control of the Imperial Bank of India, which was
renamed as state Bank of India. In 1959 , SBI took our control of eight
private banks floated in the east while princely states, making them as its
100% subsidiaries.
RBI was empowered in 1960, to force compulsory merger of weak
banks with the strong ones . The total number of banks was thus reduced
from 566 in 1951 to 85 in 1969. In July 1969, government nationalized
government nationalized 6 more banks were to make them play the role of
the catalytic agents for economic growth. The Norseman committee report
suggested wide ranging reforms for the banking sector in 1992 to
introduce internationally accepted banking practices.
The amendment of banking regulation act in 1993 saw the entry of new
private sector banks.
The banking scenario has changed immensely after the economic
liberalization & globalization. There is transformation from traditional
banking to modern multifaceted banking system in line with the need to
achieve rapid socio economic progress . There is a clear change in the
philosophy & techniques especially in the field of lending from whole role
nature to retail character of banking activities.
Today, the banking sector is facing severe computation. In order to
survive in this competitive environment, bank now focuses on creating &
delivering customer needed service in a customer satisfying manner.

Meaning : A banking company has been defined under section 5 (1) (

c) of the banking company regulation act of 1949, “any company transacts
the business of banking in India.
According to sec 5(1) (b) of the same act defines the banking has
“accepting for the purpose of lending or investment of deposits of money
from the public, repayable on demand or other wise & withdrawal by
cheques, drafts orders or other wise.
Role of Commercial Banks in a modern Economy:

Banks play significant role in the economic development of the
country. It can be seen from the following points.
1. Deposit Mobilization: Banks play significant role in

mobilizing the savings of people by initiating different deposit schemes
by extending a network of branches through out the country.
2. Granting of credit: Banks credit is essential for financing trade,
commerce, industry, agriculture & other productive activities. Banks
extend credit to this entire field in order to have economic development
of the country.
3. Creation of credit: Commercial banks can increase or decrease
the money supply in the country & inject elasticity in to the credit
system though their function is creation of money.

4. Channelise funds in to productive Investments : Banks not

only and fund but also ensure that funds are lend only for productive
purpose by monitoring properly.
5. Provision of finance to the Government : Banks provide short
term funds by purchasing trustee bills & long term funds by subscribing
government bonds provide finance to the government.
6. Protecting the funds of depositor : Banks provides safety to the
funds of depositor by lending to different kinds of borrowers engaged
in different activities in different areas, to be invested in productive
projects & they also ensure that advances are properly secure & will
come bank in time
7. Provision of Remittance facility : Banks provide remittance
facility through remittance mechanism of bank drafts, mail transfers,
telegraphic transfers, traveler’s heaves, circular note etc., & help the
businessmen to secure funds when needed.
8. Provision of medium of exchange: Bank deposits, with draw
by cheque of transferable by credit transfers serves as a means of
settlement of debts by this it reduces use of legal tender money.
9. Discharge of social Responsibility: Banks have recognized
their social responsibility very well & now days they serve in the best
interest of the society at large. It is their bounder duly to grant credit to
every section of the society.
10. Innovative services: Modern banks under take a number of
innovative services like, merchant banking, underwriting of securities,

factoring, leasing , housing finance setting up of natural funds etc., for

the Economic development of the country.
Books of Accounts to be maintained by Banking Companies:

A banking company is received to maintain various ledger &
registers as per the requirement of the banking regulation act 1949. All
the books & register’s a banks has to maintain can be classified into
the following categories.
1. Principle ledgers
2. Subsidiary ledgers
3. Other registers & memorandum Books.
1. Principle ledger : A Banking company required maintain the
following principle books :
A. Cash Book: Which provide the summery of collection &
payments of the bank.
B. General ledger : General ledger provides details regarding
assets not covered under subsidiary books & also contain the control
accounts of subsidiary books.
2. Subsidiary ledger:
It Includes;
a. Receiving cash counter cash books
b. Paying cash counter cash books
c. Current accounts ledger

d. Saving bank account ledges

e. Fixed deposit account ledges
f. Investment ledger
g. Cash credit ledger
h. Loan ledger
i. Bills discount & purchased ledger
j. Receiving deposit account ledges
k. Fixed deposit account ledges
l. Customer’s acceptances, endorsement &
guarantee ledger etc.
3. Other registers & memorandum books:
It Includes:
a. Bills for collection register
b. Share security register
c. Jewelry register
d. Demand draft register
e. Safe custody register
f. Standing order register
g. Dishonored check register
h. Letter of credit register
i. Lockers register
Features of Bank Accounting :
Following are some of the feature of Bank accounting :
1. Banking companies have to maintain books of accounts
under double entry system

2. It has to maintain books of accounts as reserved under the

provision of banking regulation act .
3. The posting of transaction in the ledger will be based on
deposit credit slips.
4. Self balancing system of ledger is followed in accounting
by banking companies.
Project Finance Department:
Introduction : Project Finance Department { P F D} is a
professional outfit under the corporate credit wing { CCW} of Vijaya
Bank. The department consists of experienced professionals in the fields
of finance & technical offering various services in the area of corporate
credit, project appraisals, syndication of loan etc to corporate . The
department has successfully executed a variety of assignment in the past in
the area of project financing & other advisory services.
Range of services:
 Project advisory services: Review of project feasibility, structuring
of financing plans & advice on financial modeling & preparation of
project in f n memorandum.
 Syndication of financial requirements of customers. PFD offers
syndication services in arranging finance to customers funding
requirements.
OFD offers services to new projects or expansion of existing
projects in raising long term debts & or working capital limits. PFD

offers services to customers resorting to restructure their existing

debt profile by swapping high cost debt with low cost debt.
Anywhere banking:
Anywhere Banking is a technology based customer friendly service
designed to provide greater convenience to our customers.
With Anywhere Banking facility, once you have an account with any of
the select branches. You can operate it from any other designated branch
across as cities.
With any where banking you have a lost of facilities to make banking
with us.
Facilities
Individuals / Joint account holder [operated severally] maintaining
current / SB / OD Accounts.
 Withdrawal of cash
 Remittance of cash
 Transfer of funds
 Balance Enquiry
 Issue of mini statement
 Depositing local cheques for collection
 Purchase of demand draft.

Firms / companies / other Bodies maintaining current / OD/

OCC Accounts:
Transfer of funds between accounts from one anywhere banking
branch to another anywhere banking branch depositing of local cheques
for collection & crediting to the respective account at any where banking
branch.
Eligibility:
Account holders should have maintained a minimum average balance
of Rs 5000/- in SB Account & Rs 10000/- in current account in the last six
months.
Features:
Cash with draw unto Rs 50000/- per occasion Transactions
permitted on production of Identity card issued exclusively for ANY
WHERE BANKING Facility.
Facilities of both intra – city & inter – city transactions HOME
CLEARING – on line debit of cheques drawn on our own AWB branches.
DD issue – unto a limit of Rs 50000/- at any AWB branch.
Liquidity U/ S profitability:
Liquidity & safety principal aims at meeting demand of depositors for
cash in full & in time & is considered just one principle . That is principle of
liquidity but profitability aims at paying of a hand some dividend to the share
holders.

The objectives of both the principal are complicating in their nature.

These words they are opposing considerations. The most liquid assets if not
at all profitable & the most profitable asset is least liquid.
CHAPTER-4
PROFILE OF THE VIJAYA BANK
Introduction:
Vijaya Bank was founded by Late Shri A.B.Shetty & other enter-
praising formers founded Vijaya Bank on 23rd October 1931 in Mangalore,
Karnataka the objective of the founders was essentially to promote Banking
habit. Thrift & entrepreneurship among the farming community of Dakshina
Kannada district in Karnataka state. The bank become a scheduled bank in
1958, Vijaya Bank steadily grew into a large all India bank with a smaller
banks merging with it during the 1963-68. The credit for this merger as well
as growth goes to late Shri M.Sunder Ram Shetty, who was then the chief
Executive of the bank. The bank was nationalized on 15th April 1980 today,
the bank has built a network of 842 branches that span all 28 states & 4 union
territories in the country.
SHARE CAPITAL :

The share capital of Vijaya Bank is held by government of India and

institutional investor such as mutual funds UTI, Insurance Company. Other
finance institution & private corporate bodies, Indian public NRI s And other
commercials banks, Government of India acts as a promoter of the bank, it
assist & guides the bank in times of financial difficulties.
The distribution of share holding as in 31 –3 – 2005 is given below.
Category No. of shares Amount in Rs % In

held total
A. Promoters holding 23,35,17,800 2,33,51,78,000 53.87
Government of India
B. Banks & financial institutions 1,77,43,420 17,74,34,100 4.09
(central /state institutions
Mutual Fund 1,67,24,545 16,72,45,450 3.86
Body corporate 1,37,73,148 13,77,31,480 3.18
NRI s locb s 6,21,38,548 62,13,85,480 14.33
Resident holdings 8,96,20,349 89,62,03,490 20.67

Total 43,35,17,800 4,33,51,78,000 100
Loans & Advances:
Vijaya Bank provides various types of loans & Advances to all the
classes of people. As its caption ‘Your partner in progress says the services
provides by the bank.
The different types of loan schemes provided
 Educational loans
 Rent scheme
 Liquidity Finance to SSI
 Jewel loans
 Loans for purchase of equipment
 Loans on motor vehicle
 Housing loan

 Advance to small road transport operators

 Finance for trading activities
 Loans for investment resumes
 Agricultural Finance
Branch Network :
In the year 1963-68 nine small banks merged with the Vijaya
Bank. During the year 2001-02 bank nationalized its branch network by
merging 16 branches with the nearby branches covered its regional foreign
exchange cell at Bangalore in to a specialized over seas branch, as a result
the total number of branches stood at 828 as at the end of 4th March 2002, as
compared to 842 a year ago. During the year the banks has offered 2
extension converters closed on extension counter upgraded an extension
counter into a full pledged branch.
On a international front the bank built a network relationship with over
200 banks in 80 countries across America, Europe & middle cast.
Computerization:
The bank has 87 computerized branches upgrading two partially
computerized branches to total computerization lacking the number of
totally computerized & branches to 328 & 10 respectively, converting
76.73 % of aggregate business of bank.

Credit cards: Vijaya Bank given visa and master card credit for both
individuals & corporate. These cards are accepted at over 100000 members
estimated across the country & Nepal.
Vijaya Bank credit cards come along with unique & attractive feature
like.
Vijaya Cash:
Instant cash withdrawal is available when ever needed. Walk –
in to any of 831 branches across the country draw unto Rs 5000 /- per
month for classic cards and Rs 10000 /- for gold cards through the
passbook supplied along with the card.
Vijaya Security: Vijaya bank credit card brings along 24 hours personal
accident insurance coverage in the unfortunate event of the card holder
death.
Classic card holders – upto Rs 100000

Gold card holders - up to Rs 200000 in case of Road accidents
Rs. 400000 in case of the Death an air crash.
Vijaya Family cards:

Vijaya Bank add on credit cards are available for parents, spouse
children of card holder above the 18 years of age regardless of his/her
income building under the add on is charged to the main card holder.
Board of directors:

The management of broad of the bank is vested with the board of

directors. Board of directors of Vijaya Bank other than director of central
Government elected under the terms of Vijaya bank general regulations,
1998 & sec 9 (3) ( I ) of the banking companies act 1980 read with the
banking regulation act 1949 nationalized banks scheme 1980.
The present strength of board of directors of the bank is 7,
comprising of 1 executing & 6 non executive directors having diversified
professional experience. The directors have been contributing their
professional knowledge, experience & expertise in respective areas of their
specialization for the development.

Sl.No Name of Director Designation Nature of Date of
Directorship assuming
1 Shri M.S.Kapur Chariman Executive 16-8-02

& Managing -Director
Director
2. Shri. M.S. Aftab Executive Executive 02-11-04
Director Director
3. Shri.A.K.RAi nominee-GOI Non Executive 1-6-04

Director
4. Shri . S.P.Krishna Nominee- share Non-exicutive 3-8-02

Swamy holders director
5. Shri ,R.Ashok Nominee- share Non – 3-8-02

kumar Holder ExecutiveDirector
6. Shri,A.Padmanabha office employee Non - Executive 16-9-04

Shetty director Director
7. Shri,P.Krishna Nominee -RBI Non- Executive 31-3-05

Murthy Director
8. Shri, B.K. Jagdish Nominee- share Non- Executive 3-8-02

chandra holders director
9. Shri, S.Ananthan Niminee-Share Non-Executive 3-8-02

holder Director
10. Shri, Manivarjana S. workmen- Non – Executive 3-8-02

Madinur director Directors

CHAPTER-5
ANALISIS AND INTERPRETATION
Deposit: Deposit creation is an important function of commercial

bank. The bank attracts deposits from the people either by means offering
interest or other facilities business people want facilities with draw more then
investment.
Meaning : Deposits represents the amounts accepted by a bank from the

deposits it is the most important item on the liability side because
o They are major portion of the funds received by a Bank

o The capacity of a bank to earn profits depends on the volume of
deposits
o The efficiency of a bank is judged by its ability to attract
deposits.
Types of deposits : There are two types of deposits are :
Deposits
Term Deposits Demand Deposits
Current Account
Fixed Recurring Deposit Saving Bank
Deposit Deposit A/c Deposits
Saving Bank Deposit scheme :

These are opened by middle & low income groups who save then part
of present income for future needs proper introduction is necessary when
accounts are operated by cheques. A low rate of interest provided on the
deposited money.
Terms and conditions in the savings bank deposit scheme :

Conditions which are required for opening Saving Bank Account
Savings Bank Account may be opened by the following, who are known
at the bank or are properly introduced by other.
 An individual in His / Her own name
 By more than one person in their joint names payable to all of them
jointly or any one of them or more than one or survivor’s
 By natural guardian of a minor on behalf of the minor or by a person in
the name of any minor of whom he or she is a guardian appointed by a
competent court. The guardian on behalf of a minor should furnish a
declaration as t the date of the birth of the minor.
 By a minor over the age of 12 years in his own name in which case the
maximum balance in the minors account shall be restricted to Rs
10000 / - only, provided the minor produces satisfactory proof of his /
her date of birth such as school certificate etc.
 By secretaries, Treasurers, managers or other duly constituted or
authorized officers of any club, school, orphanage, Temple, Mosque,
church or other religious / charitable institutions of like nature provided
the rules & by laws governing such institutions is acceptable to the
bank.

 Companies licensed by the central government under section 25 of the

companies Act 1956, & institutions, which are not liable to pay income
tax under income tax act 1961.
How to open savings Bank Deposit Account:
Persons desiring to open savings Bank Accounts are required to fill in
& sign application form [11-394] along with the usual specimen signature
cards, producing two pass port size photographs, details of PAN / GIR
numbers or declaration in form No 60161 as the case may be & an
introduction from a person acceptable to the bank .
Minimum Balance Amount Required to open An Savings Bank
Account :
A savings Bank A / C may be opened with a minimum balance of Rs
250/ in fully computerized branches & Rs 100/- in other branches to keep
the account running . The same minimum balance should always be
maintained. If a cheque book is issued, the account shall have a minimum
balance of Rs 250/-.
The details are specific in a chart i.e. minimum balance / Amount
required to open an savings bank account
Minimum balance to be maintained
Fully computer ised Other
branches branches
For opening / maintaining SB Rs 250 /- Rs 100/-
Account [ with out cheque book]
For opening / maintaining savings Rs 250 /- Rs 250/-
bank a/c s [ with cheque book
facilities]

If the savings bank account shows balance below the minimum for a
continuous period of one year or above, the branch may at its discretion
close such Accounts.
Further Non – maintenance of minimum balance as stipulated above
attracts penalty charges are Rs 12/- per occasion.
Cheque Books: Cheque books shall be issued only against production of

duly signed requisition slip from the previous cheque book issued .
Restriction, conditions for with drawl’s in the Savings Bank Deposit

Account:
There is a restriction for the withdrawal of the amount in the

Savings Bank Deposit Account.
The total number of with drawls i.e. debit in Savings Bank
Account should not exceed 50 every half year. It is the obligation of the
account holder to take care of the cheque books issued to him or her.
Interest paid to Savings Bank Account :
Interest is allowed on the savings bank account on a half yearly
basis at the rate prescribed by the RBI on minimum monthly balance
between the 10th & the lost day of the month at the credit of each
account on a minimum balance of Rs 10/- & above & on multiple of
Rs 10/- provided interest thus calculated does not fall short of Rs 1/-
per half year.

Interest will be calculated for the half year ending 31st January &
31st July each year & will be credited to each account on or before the
10th February & the 10th August respectively each year.
.
5.1 Table showing % & Increase / Decrease of saving’ s Bank deposit

Account
Years Total amount of % to the Base % of Increase

Deposit year / decrease
2000 – 01 3,81,19,410 100% 0
2001-02 4,23,54,900 112% 12%
2002-03 4,70,61,000 124% 24%
2003-04 5,22,90,000 137% 37%
2004-05 5,81,00,000 152% 52%
INTERPRETATION:-

From the above table, we can observe that the amount deposited
in Saving Bank Account has been increased gradually from 2000-01 to
2004-05 . That is in the base year 2000-01 the % of deposit is 100%
then it has been increased to 112 % in the year 2001-02, 137% in
2003-04, & 152% in the year 2004-05.
We can analyse that the % of deposit in this deposit scheme is in
increasing trend, so, we can conclude that this scheme is performing
well in attracting the savings of the people.
5.1 Chart showing % & Increase / Decrease of saving’ s Bank deposit

Account

60%
52%
50%
37%
40%
30% 24%
20%
12%
10%
0%
0%
2000 – 2001 2001 – 2002 2002 – 2003 2003 – 2004 2004 – 2005
% of Increase/ decrease
5.2 Table showing New Account opened in Savings Bank Account.
Years Total no. of % to the Base year % of Increase

persons / decrease
Deposited
2000 – 01 3500 100% 0
2001-02 3650 104% 4%

2002-03 3980 114% 14%

2003-04 4390 125% 25%
2004-05 4630 132% 32%
INTERPRETATION:-
From the above table, we can observe, that the no. of persons
deposited in saving Bank A/c has been increased gradually from 2000-
01 to 2004-05 . That is in the base year 2000-01the % of Deposit is
100% ,then it has been increased to 104% in the year 2001-02, 114 %
in the year 2003-03 125% in 2003 –04 , & 132% in the year 2004-05.
We can Analyse that the % of no. of persons deposited in this
scheme is in increasing trend, so, we can conclude that this scheme is
performing well in attracting the saving of the people.
5.2 Chart showing New Account opened in Savings Bank Account.

0.35 32%
0.3
25%
0.25
0.2
14%
0.15
0.1
4%
0.05 0
0
2000 – 2001 2001 – 2002 2002 – 2003 2003 – 2004 2004 – 2005
5.3 Table showing total interest amount paid by the bank to savings Bank
Deposit holders.
Years Total amount Rate of interest Interest amount

deposited paid by the bank
2000 – 01 3,81,19,410 3.5% 13,34,179.35

2001-02 4,23,54,900 3.5% 14,82,421.5

2002-03 4,70,61,000 3.5% 16,47,135.0
2003-04 5,22,90,000 3.5% 18,30,150.0
2004-05 5,81,00,000 3.5% 20,33,500.0
INTERPRETATION:-
From the above table, we can observe that the interest amount
paid by Bank to Saving Bank A/c holders it has been increased
gradually from 2000-01 to 2004-05 that is in the base year 2000-01 the
amount of interest is 13,34,179.35 . Then it has been increased to
14,82,421.5 in the year 2001-02, in the year 2002-2003 the amount of
interest is Rs 16,47,1`35 & in the year 2003-04 the amount is 18,30,150
& in the year 2004-05 the amount paid is Rs 20,33,500.
We can analyse that the interest amount of deposit in its scheme
is in increasing trend, so we can conclude that this scheme is
performing well in attracting the savings of people.
5.3 Chart showing total interest amount paid by the bank to savings
Bank Deposit holders.

1334179.35
2033500.00
1482421.50
1830150.00
1647135.00
2000 – 2001 2001 – 2002 2002 – 2003 2003 – 2004 2004 – 2005
5.4. Table showings percentage paid by the bank in savings Bank

Account
Years Total interest % to the Base % of Increase

amt paid year / Decrease

2000 – 01 13,34,179.35 100% 0

2001-02 14,82,421.5 116% 10%
2002-03 16,47,135.0 123 % 23%
2003-04 18,30,150.0 137% 37%
2004-05 20,33,500.6 152 % 52%
INTERPRETATION:-
From the above table, we can observe that the interest amount in
saving Bank A/c has been increased gradually from2000-01 to 2004-05.
I,e in in the base year 2000-01 the % of interest amount is 1005, then it
has been increased to 110% in the year 2001-02, 123% in the year
2002-03, 137% in 2003-04 & 152%in the year 2004-05
We can Analyse that the % of interest amount in this deposit
scheme is in increasing trend, so we can conclude that this scheme is
performing well in attracting savings of the people.
5.4. Chart showings percentage paid by the bank in savings Bank

Account

60% 52%
50%
37%
40%
30%
23%
20%
10%
10%
0%
0%
2000 – 2001 2001 – 2002 2002 – 2003 2003 – 2004 2004 – 2005
2. Current Account:
These are opening by trading & industrial concern a
minimum deposit of Rs 200000 Rs 300000 through proper and
satisfactory introduction rate of interest is not provided here, customers
can deposit any amount of money and any number of times and
withdraw & as many times as they want.

Terms & conditions in current Account :
Conditions required for opening current Account :

The following persons, firms etc who are properly introduced,
may open current account by singing the prescribed account opening
form [s] along with PAN / GIR numbers or declaration in form No.
60/61
 An individual in his / her own name

 More than one individual in their joint names
payable to all of them jointly or any one or more of
them or survivor [s]
 A Hindu undivided Family, a proprietor ship
concern, a partnership firm, a company, a trust, a
local body, government department etc., in its own
name by giving clear operational instructions.
Obtaining of photographs :
In terms of reserve Bank of India’s guidelines, photograph should be
given at the of opening of all categories of deposit of opening of all
categories of deposit accounts includes current account of both resident &

Non resident account holders inclusive of persons authorized open /

operate the accounts as application.
Minimum Balance Amount Required to open an Current Account:

A current Account may be opened with a minimum of Rs 1000/- in
fully / partially computerized branches & Rs 500/- in other branches.
However at specialized commercial & branches irrespective of the
location of the branches. However at specialized commercial & personal
banking branches this is Rs 10,000/- for Current Accounts. If the
prescribed minimum balance is not maintained in the current account Rs
28/- per occasion with a maximum of Rs 500/- per month will be collected.
Interest on credit Balance : Interest is not allowed on the credit balance

maintained in current accounts.
Incidental / falio / Handing charges

Bank will collect charges for the ledger folios used in current accounts
at the rate prescribed below :
Rs 66/- per ledger page [ 40 entries or part their of considered as one
ledger page ] & Rs 83/- per computer statement sheet on a half - yearly
basis subject to the concession provided on maintained of average balance
Average credit Balances Free ledger Folio pages

allowed per year

Up to Rs 25000 Nil
Above 25000/- unto Rs 50000/- 3
Above Rs 50000.- Unto Rs 100000/- 6
Above Rs 100000 /- up to Rs 200000/- 11
Above Rs 200000/- All
5.5 Table showing % of Increase / Decrease of current Account
Years Total amount % to the Base % of Increase

deposited year / decrease
2000– 01 11, 90 000 100% 0

2001-02 13, 94 000 117% 17%
2002-03 14, 45, 000 121% 215
2003-04 15,64,000 131% 31%

2004-05 17,00,000 1425 42%
INTERPRETATION:-
in current account has been increased gradually from 2001-01 to 2004-
05 . That is in the base year 2000 – 01 to 2004-05. That is in the base
year 2000-01 the % of deposit is 100% . Then it has been increased to
117 % in the year 2001-02, 121 % in the year 2002-03, 131 % in 2—3-
04 & 142 % in the year 2004-05.
We can Analyse that the % of deposit in this deposit scheme is in
increasing trend, so, we can conclude that this scheme is performing
5.5 Chart showing % of Increase / Decrease of current Account

42%
45%
40%
35% 31%
30%
25% 21%
17%
20%
15%
10%
5%
0%
0%
2000 – 2001 2001 – 2002 2002 – 2003 2003 – 2004 2004 – 2005
5.6 Table showing New Accounts opened in Current Account.

Years Total % to the Basic % of Increase

interest amt year / decrease
paid
2000 – 01 50 100% 0
2001-02 85 170% 70%
2002-03 94 188% 88%
2003-04 108 216% 116%
2004-05 122 244% 114%
INTERPRETATION:-
From the above table, we can observe that the No, of persons
deposited in current A/c has been increased gradually from 2000-01 to
2004-05. That is the base year 2000-01 the % of deposited persons is
100% . Then it is increased to 170% , it is creased to 188 % in the year
2002-01, in 2003-04 it has been increased to 216 % & in 2004-05 it
has been increased to 244%.
We can Analyse that the % of No, of persons deposited in this
performing well in attracting the current A/c of the people.
5.6 Chart showing New Accounts opened in Current Account

116% 114%
120%
100% 88%
80% 70%
60%
40%
20%
0%
0%
2000 – 2001 2001 – 2002 2002 – 2003 2003 – 2004 2004 – 2005
TERM DEPOSIT

Recurring deposit Account; These deposits are meant for

people who have regular monthly incomes. Deposited amounts will be
in the multiples of Rs 5 & Rs10. Here the depositor deposits a fixed
sum of money every month for an agreed period & at the end of the
specific period the deposited money along with the interest can be with
drawn.
This scheme helps in savings easily & systematically, through
either fixed or variable monthly installments. You can choose any
deposit period ranging from 6 to 120 months, in completed 3 months.
Under variable monthly installments you have the option to choose a
core monthly installment [ witha minimum of Rs 10/- or multiples] and
remit any amount subject to this minimum with a maximum of ten
times of the more monthly installment.
It is one form of savings deposits . Depositor save & deposit
regularly every month a fixed installment so that they are assured of the
sizeable amount at a later period. There will enable the depositors at
meet contingent expenses. Banks have found these deposits popular.
Many people would not have saved if these deposits had not been
introduced this deposit works on the maxim “little drops of water
make a big ocean “.
Terms & conditions for opening account:

Any person can open this deposit account he can even have more
than one account at a time. This account can be opened joint names
also.
It may be opened for monthly instilments in sums of Rs 5/- or in

multiples of Rs5/- with a maximum of Rs 1000/- the number of
monthly instilments may very from 12 months to 72. The total amount
is repayable 30 days after the last installment has been paid.
For deposits of higher installments. The maturity amounts can be
calculated as multiples of the maturity amount for an installment of
Rs5.
Every depositor should pay the monthly installments with in 30
days from the due date. If he fails to do so, interest will be charged on
the installments in arrears the rate of 4 paisa for every Rs5/- per month.
A recurring deposit holder can get a loan on the security of a

recurring deposit. The banker may grant 75 % of the total amount paid
as loan & the interest of 2% over the recurring deposit rate is charged.
These accounts are transferable from one branch ot another. A
recurring deposit holder is given the recurring deposit pass book for his
verification. The rate of interest is similar to the rate offered on fixed
but it is compounded
5.7 Table showing % of increase / Decrease recurring deposit

account.

Years Total Amount % to the Base % of Increase

Deposited year / decrease
2000 – 01 2,47,200 100% 0
2001-02 2,87,800 116% 16%
2002-03 2,88,400 117 % 17%
2003-04 3,70,300 150% 50%
2004-05 4,12,000 166 % 66%
INTERPRETATION:-
From the above table we can observe that the amount deposited
in recurring deposit A/c has been increased gradually from 2000-01 to
2004—05 that is in the base year 2000-01 the % of deposit is 100% ,
then it has been increased to 116% , & 117% in the year 2002-03,
150% in 2003-04 , 166% in the year 2004-05.
We can analyse that the % of deposit is this deposit scheme is in
increasing trend; so, we can conclude that this scheme is performing
5.7 Chart showing % of increase / Decrease recurring deposit account

66%
70%
60%
50%
50%
40%
30%
16% 17%
20%
10% 0%
0%
2000 – 2001 2001 – 2002 2002 – 2003 2003 – 2004 2004 – 2005
5.8 Table showing new Account opened in recurring deposit

account .

Years No. person % to the Basic % of Increase

deposited year / decrease
2000 – 01 0 0 0
2001-02 8 100% 0
2002-03 17 212.5% 112.5 %
2003-04 24 300% 200%
2004-05 28 350% 250%
INTERPRETATION:-
From the above table, we can observe that the no. of persons
deposited in recurring deposit A/c has been increased gradually from
2000-01 The % of deposited persons in Nil, i.e. there is no person
invested their money in the recurring deposit A/c. Then it has been
increased to 100% in the year 2000-02, 212.5% in the year 2002-03 &
300% in 2003-04 & in the 2004-05 it has been increased to 350%.
increasing trend. So, we can conclude that this scheme is performing
5.8 Chart showing new Account opened in recurring deposit account

250%
250%
200%
200%
150%
112.50%
100%
50%
0% 0%
0%
2000 – 2001 2001 – 2002 2002 – 2003 2003 – 2004 2004 – 2005
5.9 Table showing total interest amount paid by bank on the recurring
deposit account.

Years Total interest % to the Basic % of Intrease

amt paid year / decrease
2000 – 01 2,47,200 3.5 % 8652

2001-02 2,87,400 3.5% 10073
2002-03 2,88,400 3.5% 10094
2003-04 3,70,300 3.5% 12978
2004-05 4,12,000 3.5% 14420
INTERPRETATION:-
From the above table, we can observe that the interest amount
paid by Bank to recurring deposit A/c holders it has been gradually
increased from 2000-01 to 2004-05. That is in the base year 2000-01 the
amount of interest is 8652, then it has been increased to 10073 in the year
2001-02, 10094 in the year 2002-2003, 12978 in the year 2003-04 14420
in the year 2004-05.
We can analyse that the interest amount of deposit in this scheme is in

increasing trend, so we can analyse that this scheme is performing well in
attracting the savings of the people.
5.9 Table showing total interest amount paid by bank on the recurring
deposit account.

8652.00
14420.00
10073.00
12978.00
10094.00
2000 – 2001 2001 – 2002 2002 – 2003 2003 – 2004 2004 – 2005
5.10 Table showing % Percentage paid by the bank in recurring deposit

account.
Years Interest amt paid % to the Basic % of Increase

year / decrease
2000 – 01 8652 100% 0
2001-02 10073 116% 16%
2002-03 10094 117 % 17%
2003-04 12978 150% 50%
2004-05 14420 166 % 66%
INTERPRETATION:-
Form the above table we can observe that the interest amount in
recurring deposit account has been increased gradually from 2000-01 to
2004-05 , That is in the base year 2000-01 the % of interest amount is
100% . Then it has been increased to 116% in the year 2001-02, 117% , in
the 2002-03 , 150% in the year 2003-04 & 166% in the year 2004-05.
We can analyse that the % of interest amount in this deposit

scheme is in increasing trend, so we can conclude that this scheme is
performing well in attracting savings of the people.
5.10 Chart showing % Percentage paid by the bank in recurring deposit

account.

66%
70%
60%
50%
50%
40%
30%
16%
17%
20%
10% 0%
0%
2000 – 2001 2001 – 2002 2002 – 2003 2003 – 2004 2004 – 2005
Fixed Deposit Account : [ Term Deposits]

These are operated by small investments by depositing fixed
amount fixed periods fixed rate of interest. The deposited money is with
drawn after the expiry of fixed receipt issued by the bank at the time of
opening account.

A fixed deposit is one which is repayable after the expiry of a predator

mined period fixed by the customer himself. The period varies from 15
days to 3 years. A deposit account can be opened fro a period of more
than 3 years & in that case the rate of interest remains the same level.
These deposits are not payable on demand but they are withdrawal subject
to a period of notice. Hence it is called as term deposits.”
Terms & conditions to the fixed deposit account:

Opening Account: The fixed deposit holder is expected to fill up
an application form prescribed fro the purpose, stating the amount & the
period of deposit. The application itself contains the rules & regulations of
the deposit in addition to the space for specimen signature. As in opening
a correct account, a banker does not insist upon a letter of introduction or
reference for fixed deposit account because of the absence of frequent
transaction on the account.
Interest : The interest rate offered on the fixed deposit is so

attractive that it has resulted in a change in the composition of bank
deposits. Till recently, most of the deposits of commercial banks has been
demand deposits & new fixed deposits occupies more than 70% of bank
deposits. The rate of interest varies according to the period of deposit. In
Indian banking history the firs ever highest interest rate of 15% was
offered on term deposits for 1-2-97 on wards,

However, in recent times, the RBI, has deregulated the interest rates on
fixed deposit. The banks are given the freedom to fix their own rates for
different periods.
How ever the special rates have been fixed for deposits of senior
citizens of 60 years of age or above giving them some schemes.
The present rates applicable to the fixed deposits in case of senior
citizens.
Serial No. Term of deposit 1 Interest per Annum

years to less than 2
years
1 1 years to less than 2 6%
years
2 2 years to less than 3 7%
years
3 3 years & above 7.5%
Table showings the present interest paid by the bank to fixed deposit
holder for different periods.
Serial No. Term of deposit 1 Interest per Annum

years to less than 2

years
1 1 day to 14 days Nil
2 15 days to 45 days 4.25%
3 46 days to 179 days 5%
4. 139 days to 1 years 5.5 %
5. 1 years to 3 years 5.75%
6. 3 years & above 6%
Period of the deposit ; The minimum period has been fixed as low as
7 days, A per the guidance of the Indian banks Association , banks should
not accept deposits for a period longer than 10 years. If the maturity date
of fixed deposit fassa a holiday, it should be paid only on the succeeding
working day, since a fixed deposit not be claimed before the maturity date
as per the terms of original contract.
Fixed deposit receipt ; At the time of opening the deposit account,
the banker issued a receipt acknowledging the receipt of money on deposit
account. It is popularly known as F.D.R [Fixed Deposit Receipt]. It
contains the amount of deposit, the name of the holder of the deposit, the
rate of interest, due date etc. On the reverse side of the F.D.R separate
columns are provided for making entries regarding interest.
Particular of A. F. D. R
1. Name of the bank & place
2. Due Date
3. Date
4. Name of the Depositor
5. Amount

6. Period
7. Interest Rate
8. Signature of the manager
Fixed Deposit Receipt

{Face View}
VIJAYA BANK ITD

No: 12345 Due on
Chickballapure Branch
Date ……………..2005
Received from ------------------------------------------------------------------
Rupees --------------------------------------as fixed deposit repayable
in -------------------------months after date with interest at the rate
----------------% per Annum
RS Accountant Manager

Back View of V.D.R
Memorandum Payment of Interest

1. This F.D.R dully discharged should Date Half Amount Signature of
be surrendered at the time of payment or year Authorized
renewal of deposit. To prevent loss of ended person
interest, the receipt intended for renewal
should be sent on due date
2. The F.D.R is not transferable by
endorsement. In the absence of special
instructions . The amount of F.D.R can
be paid only to the depositor in person.
3. Rate of interest overleaf is subject to
resource bank P directive issued from
time to time.
Received payment / please renew ……..
month / years
Signature of the depositors

5.11 Table showing % of increase / decrease of savings Bank deposit

account
Years Total amount % to the Basic year % of Increase

deposited / decrease
2000 – 01 7995000 100% 0
2001-02 9225000 115% 15%
2002-03 10086000 126% 26%
2003-04 10455000 130% 30%
2004-05 12300000 154% 54%
INTERPRETATION:-
in fixed deposit account has been increased gradually from 2000-01 to 2004-
05 that is in the base year 2001-01 % of deposit is 100% . Then it has been
increased to 115% . 126% in 2002-03 , 130% in 2003-04 , 154% in 2004-05.
increasing trend. So, we can conclude that this scheme is performing well in
attracting the deposits of people.
5.11 Table showing % of increase / decrease of savings Bank deposit

account

60% 54%
50%
40%
30%
30% 26%
15%
20%
10%
0%
0%
2000 – 2001 2001 – 2002 2002 – 2003 2003 – 2004 2004 – 2005
5.12 Table showing new accounts open in fixed deposit account.
Years Total % to the Basic % of Increase

interest amt year / decrease

paid
2000 – 01 98 100% 0
2001-02 115 117% 17%
2002-03 140 143% 43%
2003-04 158 161% 61%
2004-05 165 168% 68%
INTERPRETATION:-
From the above table, we can observe that the No. of persons deposited
in fixed deposit A/c has been increased gradually from 2000-01 to 2004-05 .
That is in the base year 2000-02 the % of deposit is 100% . Then it has
increased to 117% , 143% in 2002-03 , 161% in 2003-04 , 168 % in the year
2004-05
We can analyse that the % of No, of persons deposited deposited in this

performing well in attracting the savings of the people.
5.12 Chart showing new accounts open in fixed deposit account.

68%
70%
61%
60%
50% 43%
40%
30%
17%
20%
10% 0%
0%
2000 – 2001 2001 – 2002 2002 – 2003 2003 – 2004 2004 – 2005

5.13 Table showing total interest rate amount paid by bank to F.D holder
who deposit their money for the period of 15-45 days.
Years Amount Deposited Term of Rate of Total

interest
Deposit Interest amount
2000 – 01 7995000 15-45 days 4.25 % 339787.5
2001--02 9225000 15-45 days 4.25 % 392062.5
2002--03 10086000 15-45 days 4.25 % 428655.0
2003--04 15,64,000 15-45 days 4.25 % 444337.5
2004--05 17,00,000 15-45 days 4.25 % 522750
INTERPRETATION:-
From the above table, we can observe that the interest amount paid by
bank to fixed deposit holders for the period of 15-45 days is increased
gradually from 2000-01 The amount of interest is 339787.5 , then it has been
increased to 392062.5 in 2001-01, 428655.0 in 2002-03 , 444337.5 in 2003-04
522750 in the year 2004-05.
increasing trend, so, we can conclude that their scheme is performing well in
attracting deposits from people.
5.13 Chart showing total interest rate amount paid by bank to F.D holder
who deposit their money for the period of 15-45 days.

339787.50
522750.00
392062.50
444337.50
428655.00
2000 – 2001 2001 – 2002 2002 – 2003 2003 – 2004 2004 – 2005
who deposit their money for the period of 46 to 179 days.

Deposit Interest interest

amount
2000 – 01 7995000 46 to 179 days 5% 399750
2001--02 9225000 46 to 179 days 5% 461250
2002--03 10086000 46 to 179 days 5% 504300
2003—04 10455000 46 to 179 days 5% 522750
2004—05 12300000 46 to 179 days 5% 615000
INTERPRETATION:-
bank to the fixed deposit holders for the period of 46 to 179 days is increased
gradually from 2000-01 to 2004-05 that is in the base year 2000-01 interest
amount is 399750, then it has been increased to 461250 in the year 2001-02,
504300 in the year 2002-03 , 522750 in the year 2003-04 615000 in the year
2004-05.
increasing trend, so, we can conclude that this scheme is performing well in
who deposit their money for the period of 46 to 179 days.

399750.00
615000.00
461250.00
522750.00
504300.00
2000 – 2001 2001 – 2002 2002 – 2003 2003 – 2004 2004 – 2005
who deposit their money for the period of 180 days t 1 year.


interest
Deposit Interest amount
2000 – 01 7995000 180 to 1 year 5 .5% 439725
2001--02 9225000 180 to 1 year 5 .5% 507375
2002--03 10086000 180 to 1 year 5 .5% 554730
2003—04 10455000 180 to 1 year 5 .5% 575025
2004—05 12300000 180 to 1 year 5 .5% 676500
INTERPRETATION:-
From the above table , we can observe that the interest amount paid by
bank to the fixed deposit holders for the period of 180 to 1year is increased
amount is 439725, then it has been increased to 507375 in the year 2001-02,
554730 in the year 2002-03 , 575025 in the year 2003-04 676500 in the year
2004-05.

who deposit their money for the period of 180 days t 1 year.

439725.00
676500.00
507375.00
575025.00
554730.00
2000 – 2001 2001 – 2002 2002 – 2003 2003 – 2004 2004 – 2005
who deposit their money for the period of 1 year to 3 years
Years Amount Term of Deposit Rate of Total

Deposited Interest interest

amount
2000 – 01 7995000 1 year to 3 years 5 .75% 4,59,712.5
2001--02 9225000 1 year to 3 years 5 .75% ,30,437.5
2002--03 10086000 1 year to 3 years 5 .75% 5,79,945.0
2003—04 10455000 1 year to 3 years 5 .75% 6,01,162.5
2004—05 12300000 1 year to 3 years 5 .75% 7,07,250.0
INTERPRETATION:-
bank to the fixed deposit holders for the period of 1year to 3 years is
increased gradually from 2000-01 to 2004-05 that is in the base year 2000-01
interest amount is paid by bank is 459712.5 , then it has been increased to
530437.5 in the year 2001-02, 579945.0 in the year 2002-03 , 6,01,162.5 in
the year 2003-04 7,07,250.0 in the year 2004-05.

who deposit their money for the period of 1 year to 3 years

459712.50 30437.50
707250.00
579945.00
601162.50
2000 – 2001 2001 – 2002 2002 – 2003 2003 – 2004 2004 – 2005
who deposit their money for the period of 3 years & above.


interest
Deposited Interest amount
2000 – 01 7995000 3 years & above 6% 479700
2001--02 9225000 3 years & above 6% 553500
2002--03 10086000 3 years & above 6% 605160
2003—04 10455000 3 years & above 6% 627300
2004—05 12300000 3 years & above 6% 738000
INTERPRETATION:-
bank to the fixed deposit holders for the period of 3 years & above is
increased gradually from 2000-01 to 2004-05 that is in the base year 2000-01
interest amount is paid by bank is 479700 , then it has been increased to
553500 in the year
2001-02, 605160 in the year 2002-03 , 627300 in the year 2003-04 , 733000
in the year 2004-05.
who deposit their money for the period of 3 years & above.

479700.00
738000.00
553500.00
627300.00
605160.00
2000 – 2001 2001 – 2002 2002 – 2003 2003 – 2004 2004 – 2005

who deposit their money for the period of 1 day to 14 days .

interest
Deposited Interest amount
2000 – 01 7995000 1-14 days Nil 7995000
2001--02 9225000 1-14 days Nil 9225000
2002--03 10086000 1-14 days Nil 10086000
2003—04 10455000 1-14 days Nil 10455000
2004—05 12300000 1-14 days Nil 12300000
INTERPRETATION:-
bank to the fixed deposit holders for the period of 1-14 days is increased
amount is paid by bank is 7995000 in this scheme there is no interest for this
scheme period of deposited is lees so there is no interest.
who deposit their money for the period of 1 day to 14 days .

7995000
12300000
9225000
10455000
10086000
2000 – 2001 2001 – 2002 2002 – 2003 2003 – 2004 2004 – 2005

Vijaya Cash Certificate : It is scheme which introduced by the Vijaya bank

it is the scheme in the fixed deposit accoutn . The anme itself says its belong
to the vijaya bank.
Vijaya cash certificate scheme is a convenient way to save for your
children’s higher education or to build a house etc.,
This scheme helps you to build on your capital along with the benefit of
compound interest. Available in denominations of Rs 100/- & multiple there
of, you can choose certificate for any period ranging from 6 months to 10
years.
Terms & conditions required
 There is no restriction to take the Vijaya cash certificate.

 No need of introduction because it is fixed for a particular
period.

5.19 Table showing % of increase/ decrease of Vijaya cash certification
Years Total amount of % To the Basic year % Of Increase

Deposits / Decrease
2000 – 01 17435000 100% 0
2001-02 20605000 118% 18%
2002-03 23775000 136% 36%
2003-04 30115000 172% 72%
2004-05 31700000 182 % 82%
INTERPRETATION:-
From the above table , we can observe that the amount deposits in the
Vijaya cash certificate has been increased gradually from 2000-01 to 2004-
05 that is in the base year 2000-01 the % then it has been increased to 118%
in the year
2001-02, 136% the year 2002-03, 172% the year 2003-04, 182% the year
2004-05.

attractign the savings of the people.
5.19 Chart showing % of increase/ decrease of Vijaya cash certification

90% 82%
80% 72%
70%
60%
50%
36%
40%
30% 18%
20%
10% 0%
0%
2000-2001 2001-2002 2002-2003 2003-2004 2004-2005
5.20 Table showing No. of persons deposited their money in vijaya cash
certificate

INTERPRETATION:-
From the above table , we can observe that the amount deposits in the
Years No. of persons % To the Basic year % Of Increase

Deposits / Decrease
2000 – 01 460 100% 0
2001-02 499 108% 8%
2002-03 550 120% 20%
2003-04 580 126% 26%
2004-05 630 137% 37%
05 that is in the base year 2000-01 the % of deposit is 100%. Then it has
been increased to 108% in the year 2001-02, 120% the year 2002-03, 126%
the year 2003-04, 137% the year 2004-05.
We can analyse that the % of No. of parsons deposit i scheme is in

5.20 Chart showing No. of persons deposited their money in vijaya cash
certificate

37%
40%
35%
30% 26%
25% 20%
20%
15%
8%
10%
5% 0%
0%
2000-2001 2001-2002 2002-2003 2003-2004 2004-2005
5.21 Table showing total interest amount paid by bank to Vijaya cash
certificate holders:

Years Amount Deposits % To the Basic year % Of Increase

/ Decrease
2000 – 01 1,74,35,000 6% 10,46,100
2001-02 20,60,5000 6% 12,36,300
2002-03 2,37,75,00 6% 14,26,500
2003-04 3,01,15000 6% 18,06,900
2004-05 3,17,00,000 6% 19,02,000
Note: In this table the Tate of interest will be taken 6% if a person deposited
amount for 3 years & above. If the period differs rate of interest also differs.
INTERPRETATION:-
Vijaya bank cash certificate holders it has been increased gradually from
2000-01 to 2004-05 that is in the base year 2000-01 interest amount is paid by
bank is 10462100, then it has been increased to 1236300 in the year 2001-02,
1426500 in the year 2002-03, 18,06,900 in the year 2003-04, 19,02,000 in the
year 2004-05.
We can analyse that the amount deposit i scheme is in increasing trend,

so, we can conclude that this scheme is performing well in attracting the
savings of the people.
5.21 Table showing total interest amount paid by bank to Vijaya cash
certificate holders:

1046100
1902000
1236300
1806900 1426500
2000-2001 2001-2002 2002-2003 2003-2004 2004-2005
5.22 Table showing percentage paid by the bank to the Vijaya cash
certificate holders.
Years Amount % To the Basic % Of Increase

Deposits year / Decrease

2000 – 01 10,46,100 100% 0
2001-02 12,36,300 118% 18%
2002-03 14,26,500 136% 36%
2003-04 18,06,900 172% 72%
2004-05 19,02,000 182% 82%
INTERPRETATION:-
From the above table, we can observe that the amount deposits in the
05 that is in the base year 2000-01 the % of deposit is 100%. Then it has
been increased to 11% in the year 2001-02, 136the year 2002-03, 172% the
year 2003-04, 182% the year 2004-05.
We can analyse that the amount deposit i scheme is in increasing trend,

so, we can conclude that this scheme is performing well in attracting the
savings of the people.
5.22 Chart showing percentage paid by the bank to the Vijaya cash
certificate holders.

90% 82%
80% 72%
70%
60%
50%
36%
40%
30% 18%
20%
10% 0%
0%
2000-2001 2001-2002 2002-2003 2003-2004 2004-2005
Various Deposit Schemes of Vijaya Bank:

V stars deposit schemes: It is also called as an innovative deposit
scheme. Savings band account holders who maintain a minimum monthly
balance of Rs 5000/- during the preceding six months are eligible for any one

of the following loans at concessional rates of interest viz at 1.5% lower than
the normal rate applicable to respective scheme subject to a minimum of the
banks primes lending rate.
 A term loan equivalent to 4 times the average monthly

minimum balance for the proceeding 6 months subject to
maximum of Rs 50000 for purchase of house hold
articles / consumer durables.
 Loan under “U –cash or V- equip schemes subject to
eligibility an the schemes.
Vijayashri Units:
This scheme is devised to meet the needs of diverse investors like
individuals, institutions, professions, executives, entrepreneurs, housewives,
and farmers among others.
Vijayashree units combine the features of a term deposit in terms of

higher interest rates, & the facility for partial withdrawal in units of Rs 1000/-
Vijayashree units are issued for Rs. 1000/- & multiples there of . The
scheme has no maximum limits & interest compounded on a quarterly basis.
If the period of deposit exceeds 3 months.
This is a convenient banking scheme where an authorized
Jeewan Nidhi agent collects the money you wish to deposit at your door ship.

This scheme promotes savings habits among children, house wives,

professionals, salaried people, shop keepers, small traders & businessmen.
Individuals can choose a deposit period of 12, 39 or 63 months, with a
daily deposit, as low as Rs 1/-
Capital gains accounts scheme:

This is also a one of the scheme of the Vijaya Bank.
 Under this scheme an income tax, assesee can avail of the

benefit of exemption from capital gains if the amount of
capital gains or the net consideration is deposited in any
branch [other than the rural branches] on or before the due
dates of their filing return of income.
 The income tax assesses who are eligible for exemption
under section 54 , [54B, 54D, 54 F or 54 G] of the income
tax act 1961 may open “Account A” which is in the form
of savings bank account or account B which is in the form
after deposits with an option to the depositors to keep the
deposit as cumulative or non cumulative deposit.
 Depositor desirous of opening an accounts under the
scheme for the first time shall apply in form “A” in
duplicate, obtaining the application from the nearest
branch.
 Opening of joint account is not permissible under the
scheme.

 Deposits may be made in one lump sum or in stages at any

time on or before the due date of furnishing the return of
income under sub section [1] of section 139 of ht act
 In case of deposit under account “A’ the depositor will be
issued with a pall book where in all amounts of depositor
withdrawals together with interest due shall be entered
under the signature of the authorized officer of the branch.
In the case of deposit under Account “B: a deposit receipt
with principal amount of deposit , date of deposit , rate of
interest, date of maturity of deposit etc. will be issued to
the depositor.
 Chaque book facilities are not permitted at {GA – Account
A in view of the system of withdrawal prescribed under
the scheme.
 The minimum period of maturity of the deposits in
account “B” is 15 days & maximum is for any number of
years However in the case of these accounts exemption
may be available to the tax payer only if the capital gains
are utilized within a specified period as per the provisions
contained in sections 54, 54B, 54D, 54E & 54 G of income
tax Act.
The interest rate to be paid in Account ‘A” [i.e. savings Bank account] under
capital gains A/c scheme, 1988 shall be the same as given for savings & bank
A/c effective from march 01, 2003,. The rate of Applicable for account “B”

[i.e term deposit A/c] under this scheme will be as per the interest rates
commerical by the bank through deposit interest rate from time to time.
[NRF] Resident Foreign Currency:

A person resident in India may open, hold & maintain with &
Authorized dealer in India a resident foreign currency [domestic] Account,
our of foreign exchange acquired in the form of currency notes, bank notes &
travelers cheques.
RFC [Domestic] Account can be maintained for the time being in the
form of non-interest bearing current account only with cheque facility.
Credits to the account: Following credits are allowed in RFC

[domestic] Accounts:
1. Foreign exchange acquired by the account holder from any of the
sources stated below :
 While on visit to any place outside India by way of payment
for services not creasing from any business in or anything
done in India.
 From any person, not resident in India 7 who is on visit to
India, as honorarium of gift of for services rendered or in
settlement of any lawful obligations.
 By way of honorarium or gift while on a visit to any place
outside India.

 Represents unspent amount of foreign exchange acquired by

him from an authorized person travel abroad.
 As a gift from a close relative: For the purpose of this clause,
“close” “relative” means relatives as define! In section 6 of
the companies Act, 1956.
 By way of earnings export of goods services, or as royalty,
honorarium of by any other lawful means
 Representing the disinvestment proceeds received by the
resident account holder on conversion of shares held by hi to
ADR’s /GDRs
Debits to the account: The funds in a RFC [Domestic] amount

are free from all restrictions regarding utilization of ht foreign
currency balances including any restriction on investment out
side India. Definition of close relatives [As defined in the
companies Act] two persons shall be deemed to be relatives if &
only if:
 They are members of Hindu undivided

Family
 They are husband & wife
 The one or the spouse of the one is related to
the other or the spouse of the other as parent & child grand
parent & grandchild or brother & sister

 The one is related to the other in the manor

indicated in schedule 1-A
CHAPTER-6
FINDING'S CONCLUSIONS AND SUGGESSIONS
Specific Findings:
 It is find that savings deposits is increasing from year to year

 From this analysis we know that there is a increase in the No. of

persons deposited in this Bank under savings Bank A/c is in increasing
trend.
 There is a constant interest rate for the savings deposit holder i.e. 3.5%
 From this Analysis we know that there is increase in total interest
amount paid by Bank.
 It is find that current deposits is increasing from year to year.
 By Analysis we know that their is a increase in the No. of persons
deposited in the current A/c is in increasing trend.
 It is find that recurring deposits is increasing from year to year.
 By Analysis we know that there is a increase in the No. of persons
deposited in the recurring deposit A/c . But it is countable in nature.
 There is a constant interest rate for the recurring deposit A/c holder i.e.
3.5%
 From this Analysis we know that % of interest amount paid by bank to
recurring deposit holder is less.
 It is find that fixed deposits is increasing from year to year
 From this analysis we know that there is a increase in the No. of
persons deposited in fixed deposit A/c is in increasing trend.
 From this analysis we know that there is no interest for the depositor
who are willing to deposit there amount for the very short period i.e. 1
to 4 days
 There is a increase in deposits & interest amount paid by bank under
different terms of deposits. [I.e. 1-14 days – Nil, 15-45 4 25% , 46 to

179 days 5%, 180 to 1 year 5.5.%, 1 to 3 year 5.75%, & 3 years &
above 6%]
 There is a increasing in interest rate per annum under different terms of
deposits in fixed deposit
 It is find that this bank has opened a new scheme i.e. Vijaya cash
certificate to the benefit of children higher education & to build a house
 It is find the deposits in Vijaya cash certification is in increasing from
year to year
 From this Analysis we know that the No. Of persons deposited in
Vijaya cash certificate is easy to count.
 From this Analysis we can know that there is different interest rate paid
by bank to Vijaya cash certificate holder i.e. under the various terms of
deposits [E.g. If they deposit their amount in Vijaya cash certificate for
1 to 3 year i.e. 6%]
 There is increase in interest amount paid by bank to Vijaya cash
certificate holders
 By Analysis we know that there is a scheme for the Non- residential
Indian’s it is helpful to the Indians who are living in foreign country.
 There is a scheme for the senior citizens to deposit their savings. The
rate of interest paid by the bank is 7.5%
 We know that V star deposit scheme is beneficial to limited depositor.
 From this Analysis we know that this bank introduced new scheme i.e.
Vijayashri units to increase the deposits

 From this Analysis we know that Vijaya Bank introduced a New

scheme i.e Jeewan nidhi scheme. It is beneficial to children, salary
people business men, shop keeper house wife etc.,
 From this Analysis we can know that, Vijaya bank introduced a new
scheme i.e capital gains accounts scheme it is very beneficial to the
depositors. By this they get a benefit of exemption from the income
tax.
 There is no interest amount paid by bank to current account holders but
they charge some amount for marinating accounts.
 They give loans for the depositors of current A/c holder i.e overdraft
facility with some % of interest charged by the bank
 They give loan facility for the fixed deposit holder up to the 80%.
 There is a scheme for the salary people who withdraw the amount
before the salary due date.
GENERAL FINDINGS:
 The branch is fully computerized so the work is fast and quick
 There is a good relationship between customer and bank also there is a
good co-operation between manager and staff
 There is a good environment and well arrangement of furniture and
tables
 Good locker facilities are available to the customers in order to provide
good service
 The formalities and procedures for sanctioning loan are simple and
quick.

 Majority of the deposits accepted form the public or invested in

providing loans under housing scheme.
 The deposits accepted well utilized and invested in providing loans to
public under various schemes.
 The bank is also resulted in controlling illiteracy and helps in the
development economy as whole
 The Branch is not offering ATM service to public
 The rate of interest paid on deposits is low
 The eligibility of for granting of housing loan under the Housing Loan
scheme must be related to certain extent.
 This Branch is not giving gold loans and other loans to public
 The loan sanction for the education purpose under the education loans
scheme has been increased from the year to year to prompt literacy in
the economy
Specific Suggestions:
 In the present competitive world in the Banking sector the deposits
maintained by Vijaya Bank under savings Bank A/c is in increasing
trend. This is a good sign to the Bank, so let the Vijaya Bank maintain
the same.
 Even though there is increase in No, of customers deposited in savings
Bank A/c the bank has to further struggle to attract more depositors
through attractive interest rate & facilities.

 Vijaya Bank giving constant interest for savings depositors they have to
give flexible interest rate to attract the customer to deposit their
savings.
 The total amount paid by the Vijaya bank is a increasing trend. It
should try to reduce the total interest paid. At the same time it should
maintain the increasing trend of the depositors also.
 In the present competitive world in the banking sector the depositors
maintained by Vijaya bank under current A/c is in increasing trend,
which is a good sign to the Bank, So let the Vijaya bank maintain the
same.
 Depositors under the current account are very low. So the bank has to
increase the depositors under this scheme by giving attractive offers.
 In order to increase depositors under current Account, the bank has to
provide little bit of interest to customers based on the slabs of amount
deposited by them
 The overdraft facilities provided under current A/c is limited they have
to increase the over draft facilities to attract depositors
 Depositors under the recurring deposit account are very low. So the
bank has to increase the depositors under this scheme by giving
attractive offers.
 The rate of interest paid under recurring deposit account & savings
Bank A/c is same. The bank has to change this rate of interest to attract
more depositors.
 The No. Of persons deposited in recurring deposit A/c is very short it is
countable easily they have to increase this by giving more interest rates.

 The total interest amount paid by the Vijaya Bank is in the increasing
trend. It should try to reduce the total interest paid. At the same time it
should maintain the increasing trend of the depositors also.
 Deposits of the fixed deposit A/c is increasing every year although they
have to improve
 Interest rate for term of depositor is increased by bank. By this they can
attract more deposits.
 In the fixed deposit there is no interest rate for the deposit for the period
from 1-14 days so to improve the deposits they have to give little
interest rate to them, so that they can improve depositors.
 Vijaya Bank introduced new scheme i.e Vijaya cash certificate, which
is useful to the public. So the bank has to introduce such type of new
scheme to help the society as well as to attract more depositors.
 The No. Of persons deposited in Vijaya cash certificate is very short it
is countable easily they have to increase this by giving more offers.
 Vijaya Bank opened scheme for NRI s but it is limited they have to
improve it by giving more interest, then other various schemes.
 The interest rate paid for senior citizens is more but the age give to
recognize as a senior citizen is 60 years. The bank has to reduce this
age limit at least 50 years to attract more customers.
 The loans provided for V star depositors based on the minimum
balance of Rs5000/- since from 6 months. The bank has to relax this
eligibility to provide benefits to other people also.

 Capital gain scheme provided by Vijaya bank helps to reduce the tax
burden. So let the bank maintain the same to attract more depositors
who are having the interest of tax planning.
 The loans provided up to 80% of the principle amount deposited in
fixed deposit A/c is a good facility which is provided to depositors let
the bank maintain the same along with reducing the rate of interest on
loan given to the depositors.
General Suggestions:
 The bank should offer still mor facility to the customer in order to
mobilize mobile the savings from them for purpose of further
investment in some other scetor to develop the economy
 The bank should try to increase rate of interest payable on deposit so as
to attract the customer
 The bank should provide ATM facilities to provide saft to customer
 The eligibility criteria and amount of loan sanction must relate to some
extent so that every person can make use of such facility.
 The Bank should balance properly the cash position in such a way that
there should be neither over capitalization and nor under capitalization
 The Bank should trade off correctly between the accept and deposits
and sanction of loan.
 Effective efforts should be adopted to collect debt from the public
 It should provide more subsidies to public

 The bank should decrease the rate of interest on the loan sanction under
different scheme so that each one can utilize the opportunity of develop
further.
 Even while sanction the loan bank has to keep in the mind the benefit
of removing regional imbalance to develop economy as a whole . So it
should consider the remote area should make use such laons scheme.
 The bank should provide loan to Gold and other Loans to increase the
income of the bank.
 It has to provide few more loan to encourage educated unemployed
youths to develop sself employment among then and should help them
to involve in economic development of a country.
 It should adopt loan scheme in such a way that the poverty should be
removed. For these purpose lower sections of the society must be kept
in mind.








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A study on the deposit schemes at Vijaya Bank

Finance came to studied as a part of Economics before the turn of the

The study of potentiality of different securities as a source of procuring

Vishnupriya College of Management studies 1

The dimension of Business financial that was Earlier limited to period

Finance is regarded as lifeblood of an Enterprise. This is because in the

Meaning: Business finance explains the two terms . They are

Definitions: According to Bonneville & Dewey = “Financing consists in the

According to Prather & wert, “Business Finance deals

Vishnupriya College of Management studies 2

Function of Business Finance:

Finance function can be classified into two types

 Recurring finance function

1. Recurring function: Recurring finance functions Encompassed all

 Planning for funds

Vishnupriya College of Management studies 3

Induction of information technology & communications Networking

Vishnupriya College of Management studies 4

Origin of the word “bank”: - Opinion is not uniform with regard to

Bank: A bank is an institution, which deals with money. It means that a

Professor Kinely defines a bank as an establishment, which makes to

Vishnupriya College of Management studies 5

1. Commercial Bank: Commercial banks perform all the business

Vishnupriya College of Management studies 6

2. Industrial banks or investment banks: Investment Banks are

The main functions of industrial Banks are :

Vishnupriya College of Management studies 7

3. Agricultural Banks: These are the banks provide finance to

Agricultural Banks are in our country based on co-operation

1. Agricultural co-operative banks land development banks.

Vishnupriya College of Management studies 8

5. Savings bank: These are special banks specialize on the Mobile

Investing major portion of their deposits on government

Vishnupriya College of Management studies 9

6. Central Bank: A central bank is the highest bank & monetary

7. Mixed banking: Mixed banking is the system under with the

Commercial Banks: Commercial banks are banks, which accept

Vishnupriya College of Management studies 10

Functions of commercial banks: The functions of commercial banks are

1. Receiving Deposits: Deposits constitute the main source of funds for

2. Lending of funds: Lending of funds constitutes the main business

Vishnupriya College of Management studies 11

is employed by way of advances. As advances from the chief source of

3. Investment of funds on securities: They invest considerable amount

Creation of Money: Commercial banks not only receive deposits from

The secondary services of a banker may be divided into two classes:

Vishnupriya College of Management studies 12

3. Purchase & sale of securities on behalf of customers:

4. Advising customers regarding stock exchange investments:

Vishnupriya College of Management studies 13

A banker arranges for remittance of funds from one place to another

6. Issuing of credit cards; Banks also issue credit cards to their

7.Acting as trustee, executor, administrator & Attorney of

8 Serving as correspondents & representatives of customers:

Vishnupriya College of Management studies 14

Big commercial banks have set up merchant banking division

Services rendered by a banker not only to his customer, But

Vishnupriya College of Management studies 15

Deposit creation is an important function of commercial banks without

Meaning of Deposit : Deposits represents the amounts accepts by a bank

Vishnupriya College of Management studies 16

2. The capacity of a bank to earn profits depends on the volume of

Primary And Derivative Deposits: