CHAPTER 1.

EXECUTIVE SUMMARY
Deposit schemes are the main sources of banks. In fact, deposits account for most of the "money supply in use today. Through deposit schemes you can save a little every month to build up the desired corpus to meet your future requirement of funds. The depositors and their interests form the key area of the regulatory framework for banking in India and this has been enshrined in the Banking Regulation Act, 1949. One of the most important functions of the bank is to accept deposits from the public for the purpose of lending. In fact, depositors are the major stakeholders of the banking system. As far as the chosen banks are concerned, Bank of India is the one of the good banks in India and Axis Bank is at present Indias 3 largest bank in the private sector according to moneycontrol website. Also, in addition to this, these banks are very reliable and public are known more about this banks. The report gives an overview of the banking Sector and company profile. And awareness of customers about different types of Deposits products and services offered by Bank of India. This report was a Comparative study on Deposit products of Bank Of India And Axis Bank. The study is divided into two parts, first one is related to deposit ratios of both the bank and second one is based on primary data, asked questions to public who are customers of Bank of India and Axis bank.

CHAPTER 2. INTRODUCTION
I. Introduction to Bank
According to Britannica.com, a bank is: an institution that deals in money and its substitutes and provides other financial services. Banks accept deposits and make loans and derive a profit from the difference in the interest rates paid and charged, respectively. Banks are critical to our economy. The primary function of banks is to put their account holders' money to use by lending it out to others who can then use it to buy homes, businesses, send kids to college. When you deposit your money in the bank, your money goes into a big pool of money along with everyone else's, and your account is credited with the amount of your deposit. When you write cheques or make withdrawals, that amount is deducted from your account balance. Interest you earn on your balance is also added to your account.

II.

Introduction to Deposits

Definition: Money placed into a banking institution for safekeeping. Bank deposits are made to deposit accounts at a banking institution, such as savings accounts, checking accounts and money market accounts. The account holder has the right to withdraw any deposited funds, as set forth in the terms and conditions of the account. The "deposit" itself is a liability owed by the bank to the depositor (the person or entity that made the deposit), and refers to this liability rather than to the actual funds that are deposited. One of the important functions of the Bank is to accept deposits from the public for the purpose of lending. In fact, depositors are the major stakeholders of the Banking System. The depositors and their interests form the key area of the regulatory framework for banking in India and this has been enshrined in the Banking Regulation Act, 1949. The Reserve Bank of India is empowered to issue directives / advices on interest rates on deposits and other aspects regarding conduct of deposit accounts from time to time. With liberalization in the financial system and deregulation of interest rates, banks are now free to formulate deposit products within the broad guidelines issued by RBI. This policy document on deposits outlines the guiding principles in respect of formulation of various deposit products offered by the Bank and terms and conditions governing the conduct of the account. The document recognizes the rights of depositors and aims at dissemination of information with regard to various aspects of acceptance of deposits from the members of the public, conduct and operations of various deposits accounts, payment of interest on various deposit accounts, closure of deposit accounts, method of disposal of deposits of deceased depositors, etc., for the benefit of customers. It is expected that this document will impart greater transparency in dealing with the individual customers and create awareness among customers of their rights. The ultimate objective is that the customer will get services they are rightfully entitled to receive without demand.

While adopting this policy, the bank reiterates its commitments to individual customers outlined in the code of Banks Commitment to Customer adopted by the banks. This document is a broad framework under which the rights of common depositors are recognized. Detailed operational instructions on various deposit schemes and related services will be issued from time to time. Bank Deposit Example: For example, a Bank Deposit is generally made when opening an account or in the course of routine business or personal transactions that involve placing funds with the bank for future use. Bank deposits can be made in a number of different ways. The most direct way is to walk into a bank or a bank branch in which you hold an account. You are then usually required to fill in a Bank Deposit slip with the particulars of your account and the amount of money you wish to deposit. In addition, Bank Deposits can be made via wire transfer, as well as through a direct deposit plan from employers in many cases.

Current Statistic:

The governments attempts to restrain public sector banks from rushing for business towards the end of the financial year to meet targets proved futile, with a third of the deposits in 201213 accumulated in March.

According to data released by the Reserve Bank of India (RBI), for the year ended March, deposits stood at Rs 10.27 lakh crore, recording a rise of 17.4 per cent year-onyear. In March, banks mopped Rs 3.75 lakh crore. Total bank credit in 2012-13 stood at Rs 7.8 lakh crore, a rise of 17 per cent. Of the total credit, Rs 2.7 lakh crore was disbursed in March. This is the first time since 2009-10 that annual deposit growth outpaced credit growth. For 2012-13, RBI had projected credit growth of 16 per cent and deposit growth of 15 per cent.

The finance ministry had taken several steps to restrain government-owned banks, which control 70 per cent of the market, from rushing for funds towards the end of the financial year. In March 2012, a rush for funds had resulted in a steep rise in short-term rates, with rates for three-month certificates of deposit exceeding 12 per cent. This had increased the cost of funds for banks and exerted pressure on margins. As a result, the ministry had told banks to ensure their bulk deposits (including certificates of deposit) didnt exceed 15 per cent of total deposits. Banks that didnt adhere to this were asked to do so by March 31. Later, however, the ministry had given banks more time to comply with the norm. This year, short-term rates exceeded nine per cent, owing to a fall in interest rates. The finance ministry had also asked banks to quote bulk deposits at more than the card rate. A few years ago, the practice of having a deposit growth target for public sector banks was done away with, and this was replaced by a targeted growth in current account and savings account deposits, which were low-cost in nature. After a similar rise in March last year, both credit and deposits (outstanding) had seen a fall in the first fortnight of April. Bankers expect a similar situation this year, too. Functions of Bank
Functions of bank

Primary function

Accepting Deposit

Granting Advances

Savings DEPOSITS Fixed DEPOSITS Current DEPOSITS Recurring DEPOSITS

Overdraft Cash Credit Loans Discounting of Bill

A. Primary Functions of Banks The primary functions of a bank are also known as banking functions. They are the main functions of a bank. These primary functions of banks are explained below. 1. Accepting DEPOSITS The bank collects DEPOSITS from the public. These DEPOSITS can be of different types, such as:a) Saving DEPOSITS

b) Fixed DEPOSITS c) Current DEPOSITS

d) Recurring DEPOSITS a. Saving DEPOSITS This type of DEPOSITS encourages saving habit among the public. The rate of interest is low. At present it is about 5% p.a. Withdrawals of DEPOSITS are allowed subject to certain restrictions. This account is suitable to salary and wage earners. This account can be opened in single name or in joint names. b. Fixed DEPOSITS Lump sum amount is deposited at one time for a specific period. Higher rate of interest is paid, which varies with the period of deposit. Withdrawals are not allowed before the expiry of the period. Those who have surplus funds go for fixed deposit. c. Current DEPOSITS This type of account is operated by businessmen. Withdrawals are freely allowed. No interest is paid. In fact, there are service charges. The account holders can get the benefit of overdraft facility. d. Recurring DEPOSITS This type of account is operated by salaried persons and petty traders. A certain sum of money is periodically deposited into the bank. Withdrawals are permitted only after the expiry of certain period. A higher rate of interest is paid.

2. Granting of Loans and Advances The bank advances loans to the business community and other members of the public. The rate charged is higher than what it pays on DEPOSITS. The difference in the interest rates (lending rate and the deposit rate) is its profit. The types of bank loans and advances are:a) b) c) d) Overdraft Cash Credits Loans Discounting of Bill of Exchange

a. Overdraft These types of advances are given to current account holders. No separate account is maintained. All entries are made in the current account. A certain amount is sanctioned as overdrafts which can be withdrawn within a certain period of time say three months or so. Interest is charged on actual amount withdrawn. An overdraft facility is granted against a collateral security. It is sanctioned to businessman and firms. b. Cash Credits The client is allowed cash credit upto a specific limit fixed in advance. It can be given to current account holders as well as to others who do not have an account with bank. Separate cash credit account is maintained. Interest is charged on the amount withdrawn in excess of limit. The cash credit is given against the security of tangible assets and / or guarantees. The advance is given for a longer period and a larger amount of loan is sanctioned than that of overdraft. c. Loans It is normally for short term say a period of one year or medium term say a period of five years. Now-a-days, banks do lend money for long term. Repayment of money can be in the form of installments spread over a period of time or in a lumpsum amount. Interest is charged on the actual amount sanctioned, whether withdrawn or not. The rate of interest may be slightly lower than what is charged on overdrafts and cash credits. Loans are normally secured against tangible assets of the company.

d. Discounting of bill of exchange The bank can advance money by discounting or by purchasing bills of exchange both domestic and foreign bills. The bank pays the bill amount to the drawer or the beneficiary of the bill by deducting usual discount charges. On maturity, the bill is presented to the drawee or acceptor of the bill and the amount is collected. Introduction of Accounts An introduction for new accounts should be accepted only from account holder whose accounts are conducted satisfactorily for last 6 months except where the account is introduced by a prominent person well known to the bank through other accounts and whose whereabouts are on bank's records. To facilitate the branch managers to aggressively canvass for low cost savings bank deposit accounts and to compete with other players in the market place, some flexibility is given. So branches may open Savings Bank account against production of any one of the following current valid documents which may be accepted in lieu of introduction: a) b) c) d) e) f) Election Identity Card Passport PAN Card Driving License Govt. I.D. Card Photo Credit Card

The official opening the account should obtain photocopy of document and certify with the original. The officer should certify having verified the original document under signature with code number. Types of Accounts Savings bank accounts may be opened in the names of: a) Individual - Single Accounts b) Two or more individuals Joint Accounts c) Illiterate Persons d) Blind Persons e) Minors f) Associations, Clubs, Societies, etc
8

g) Trusts h) Institutions/Agencies specifically permitted by the Reserve Bank of India. Savings bank account cannot be opened by banks in the names of: i) Government departments j) Bodies depending upon budgetary allocations for performance of their functions k) Panchayat Samitis l) State Housing Boards m) State Electricity Boards n) Industrial Development Authorities o) Water and Sewerage /Drainage Boards p) State Text Book Publishing Corporations/Societies q) Metropolitan Development Authority r) State/District Level Housing Co-op. Societies, etc. s) Any trading, business or professional concern (e.g. firms of Chartered Accountant, Lawyer etc) whether such concern is a proprietary or a partnership firm for a company or an association. t) Political Party u) Other banks including Regional Rural Banks, Co-Operative Banks and Land Development Banks. v) For detailed instructions for dealing with these accounts, refer Chapter on Deposits General. Savings bank accounts of military units may be opened for the funds of Regimental Units which mainly consist of contributions from individual members of the unit, income from Regimental properties, collections made on Army Day, etc., Balances in such accounts earn interest as per the rules. Opening of Savings Bank accounts in the-name of certain agencies aiming to serve the weaker sections of society. In terms of the Reserve Bank of India Directive, savings bank accounts opened in the name of any trading or business concern, whether such concern is a proprietary or a partnership firm, a company or an association, would not be eligible for any interest. The Reserve Bank of India, however, has exempted certain agencies/institutions from this
9

prohibition on account of the socially desirable purpose of their activities aiming to serve the weaker sections of society. Accordingly, the following institutions/organizations are eligible for earning interest on their savings bank accounts on the usual terms: a) Primary Co-operative Credit Society financed by the Bank b) Small Farmers Development Agency (SFDA) c) Marginal Farmers and Agricultural Laborers Agencies (MFAL) d) Drought Prone Areas Programme (DPAP) e) District Development Authority (DDA) f) District Rural Development Agency/Society (DRDA/DRDS) g) Integrated Rural Development Programme (IRDP) h) Integrated Tribal Development Agency (ITDA) i) Agriculture Produce Market Committees j) Khadi and Village Industries Boards k) Jawahar Rojgar Yojana funds held by Zilla Parishad/Gram Panchayat l) Fish Farmers Development Agencies (FFDA) m) Development of Women and Children in Rural Areas (DWCRA) n) Swarna Jayanti Gram Swarojgar Yojana.

10

III.

Introduction to Bank of India

and up market retail customers and

To become the bank of choice for corporate, medium business developmental banking for small business, mass market and rural markets has been the main motive of bank of India for the last 106 years. Bank of India was founded on 7th September, 1906 by a group of eminent businessmen from Mumbai. The Bank was under private ownership and control till July 1969 when it was nationalized along with 13 other banks. Beginning with one office in Mumbai, with a paid-up capital of Rs.50 lacs and 50 employees, the Bank has made a rapid growth over the years and blossomed into a mighty institution with a strong national presence and sizable international operations. In business volume, the Bank occupies a premier position among the nationalized banks. The Bank has 4293 branches in India spread over all states/ union territories including specialized branches. These branches are controlled through 50 Zonal Offices. There are 29 branches/ offices (including five representative offices) and 3 Subsidiaries and 1 joint venture abroad. The Bank came out with its maiden public issue in 1997 and follow on Qualified Institutions Placement in February 2008. . Total number of shareholders as on 30/09/2009 is 2, 15,790. While firmly adhering to a policy of prudence and caution, the Bank has been in the forefront of introducing various innovative services and systems. Business has been conducted with the successful blend of traditional values and ethics and the most modern infrastructure. The Bank has been the first among the nationalized banks to establish a fully computerized branch and ATM facility at the Mahalaxmi Branch at Mumbai way back in 1989. The Bank is also a Founder Member of SWIFT in India. It pioneered the introduction of the Health Code System in 1982, for evaluating/ rating its credit portfolio. Presently Bank has overseas presence in 20 foreign countries spread over 5 continents with 53 offices including 4 Subsidiaries, 4 Representative Offices and 1 Joint Venture, at key banking and financial centers viz., Tokyo, Singapore, Hong Kong, London, Jersey, Paris and New York.

11

Contribution of foreign branches in the global business of the Bank as at 31.03.2013 is as under: Deposits 22.98% Advances 30.36% Business Mix 26.19%

12

CHAPTER 3. RESEARCH METHODOLOGY

I. II. Objectives of Project To understand the deposits products. To make comparative analysis of Bank of India vs Axis Bank. To study on customer preferences of Bank of Indias deposits products. Research Design The study is based on Descriptive type of research design in which I have studied the various types of Deposit Ratios and consumer preferences of deposits products. III. Scope and limitations The geographical scope of the study is restricted to Kalyan to Badlapur only with sample size of 50 people and the scope for ratio analysis is limited to two years i.e. 2011-12 and 2012-13. All the analysis and suggestions are based on the analysis of both the primary and secondary data. IV. Sampling Sample size is of 50 (Bank Of Indias 25 customers and Axis Banks 25 customers) V. Sources of data Primary data collected through questionnaire and Secondary data collected from annual report of both the banks

13

CHAPTER 4. DEPOSITS PRODUCTS OF BANK OF INDIA

I. Products of Saving deposits 1. Bank of India Salary Plus Account Scheme 2. Star Suraksha SB Plus Account 3. Saving Banks 4. Basic savings A/c (No Frill) 5. Bank of India Savings Plus Scheme* (Deposit Product) 6. Bank of India Super Savings Plus 7. Star Diamond Savings Account 8. Jai Jawan Salary Plus Account for Defense Personnel 9. Star Power Salary Account 1. Bank of India Salary Plus Account Scheme Bank of India Salary Plus Account Scheme for Para Military Forces/Central/State Govt./PSU/Private Sector enterprises and employees of Universities, Colleges, Schools . Features: No minimum Balance requirement / Zero Balance Account Free global Debit cum ATM Card to all and Platinum Card for higher salary earners Free gold credit card to all and gold International Credit card for higher salary earners Personal accident death insurance cover of Rs.2 Lac Free 100 cheque leaves in a calendar year Free internet banking, mobile banking , Star Sandesh RTGS/NEFT through net banking facility Easy overdraft equal to 4 times of net monthly salary max. Rs. 2 Lac Star Share trade (No AMC charges for Demat for 1st F.Y.) 0.25% concession in ROI on Home Loan and Auto Loan subject to min Base rate 50% concession in processing charges on Home Loan and Auto loan

14

2. Star Suraksha SB Plus Account New Savings Bank (STAR SURAKSHA SB PLUS ACCOUNT) BENEFITS ONLY TO NEW CUSTOMERS Name of Scheme Scheme available at branch Eligible Star Suraksha SB Account All branches Individuals Accounts Single Accounts, NRIs Joint and

,except

Minors,

accounts under Diamond Category Initial and Min Deposit Interest Rate Rs.500/4.00 % p.a, will be calculated on daily product basis from 03.05.2011 and will be credited twice in a year in Feb and August or at the time of closing A/c. Charges of non-maintaining minimum Rs.20/- per month balance Incentives Free Accidental Death Insurance Cover Up To Rs.50,000/- (Up To
6.9.2013)

Free One DD/PSI P.M. (Upto Rs.25,000/-) Free 50 Cheque Leaves P.A. No Ledger Folio/ Transaction

Charges Waiver of AMC Charges on Demat A/cs (for First Financial Year) Free International/Global ATM Cum Debit Card (Annual Charges Applicable From Next Year ) Free Star Sandesh (SMS) For

15

Customer Induced Transaction From ATM/Point Of Sale Or

Internet Banking And Some Other Transactions Free Internet Banking Facility Free NEFT/RTGS Through Net Banking Unlimited Internet & ATM ( Banks ATM) Transactions Free SMS And Tele-banking Free Utility Bills Payment Facility Through E-Pay Product available to BOI customers specially BOI-National Swasthya Bima Policy

floater medi claim policy of NICL available at low premium

Product available to BOI customers

Life Insurance and ULIP products of Star Union Dai-ichi Life Insurance Co. Ltd are also being distributed by us to our customers

Scheme may be discontinued at the discretion of the Bank, with prior notice to its customers on the website. 3. Saving Banks
Name of Scheme

Savings Bank A/c At all branches Individual - Single Accounts, Two or more individuals in Joint Accounts, Illiterate Persons Blind persons, Minors,

Scheme available Eligible

Associations, Clubs, Societies, etc. Trusts, Institutions/Agencies specifically permitted by the RBI

16

Initial Deposit

Rs.500/- for Cheque book operated and Rs.100/- for non cheque book For Pensioners Rs.100/and a/cs, Rs.10/-

respectively for cheque book and non cheque book a/cs Interest Rate 4.00 % p.a, will be calculated on daily product basis from 03.05.2011 and will be credited twice in a year in Feb and August or at the time of closing A/c. Charges of non-maintaining minimum Rs.20/- per month balance For Cheque Operated Accounts Incentives Free 50 Cheque Leaves P.A No Ledger folio/ Transaction

charges Free global debit cum ATM Card (Annual Charges applicable from

next year) with free Star Sandesh (SMS) on debit transactions. Free Internet Banking facility Free Fund Transfer Through Internet Banking Unlimited transactions Free access to BOI ATMs under Cash Tree Free SMS and Telebanking, Personalized cheque book on request at select centers Free utility bills payment facility through E-pay. Internet & ATM

17

Free NEFT/RTGS through internet Banking for single transaction Intersol Transactions - Cash withdrawal Rs. 50,000/- per day - upto Rs. 25000/- per day free - Beyond Rs.25000/- charges - Rs.2/per thousand Cash deposits at CBS

Branches - Free Remittance between CBS Branches A. Between A/cs No charges with same

Customer ID B. Between A/cs Upto Rs. 1.00 with different lac: No charges Customer ID Above Rs. 1.00 lac: Rs. 50/- flat. Product available specially to BOI BOI-National Swasthya Bima Policy customers floater mediclaim policy of NICL available at low premium 4. Basic savings A/c (No Frill) Features: Adult Individuals can open account. Firms / Joint accounts not eligible Simplified Know Your customer norms to be complied SB no-frill account to be opened with minimum Zero balances at all branches, subject to compliance of all other terms and conditions. Free Debit Cum ATM card issued at all CBS branches(Annual Charges applicable from next year) Withdrawals through ATMs & branch withdrawals - max 2 per month. No third party withdrawals Nomination compulsory.
18

Interest @ 4.00 % p.a. Interested will be calculated on daily products basis from 03.05.2011 and will be credited in the A/c in August and February every year or at the time of closing the A/c. Min. interest of Rs.1/- will only be credited. Collection of cheques upto Rs. 5000/-into the account.

5. Bank of India Savings Plus Scheme* (Deposit Product) Features: Bank of India Savings Plus is a mix of Savings Bank Account and Term Deposit Account. It aims at maximizing the earnings for the customer, without jeopardizing liquidity. Minimum balance in SB portion is Rs.25,000/- and minimum balance in Term Deposit Portion is Rs.5,000/-. Non-maintenance of minimum balance prescribed in the SB portion, will attract a penalty of Rs.200/- per quarter. TDS norms would apply as per extant rules.

6. Bank of India Savings Plus Scheme* (Deposit Product)

Name of Scheme

Super Saving Plus All CBS branches All those who can open SB A/c can open this a/cs

Scheme available at br. Eligible

Initial Deposits Minimum balance or Qr.Avg. balance Multiple Amount sweep out Period of Deposit Interest Rate

20 lacs 5 lacs qr. Avg. 15 lacs Less than 6 months As applicable to deposit of Rs,15.00 lacs & above

Charges of non-maintaining min. qr. 500/- per quarter Avg. balance Premature withdrawal Sweep in allowed daily
19

Advance available

No advance available

Product available specially to BOI BOI-National Swasthya Bima Yojana floter customers mediclaim policy of NICL available at low premium Product available specially to BOI Domestic Travel Insurance Cover at low customers premium of Rs.63

7. STAR DIAMOND SAVINGS ACCOUNT Presently available in selected city branches Features: Average quarterly balance in savings account Rs. 1 lac and above Branch debit transactions per month SMS/Phone/ATM and Internet Banking Personalized cheque book Multi-city cheque book facility Home delivery of Demand Drafts (couriered) Statement of account, on demand International gold credit card International debit card Relationship manager Stop payment charges Processing charges on personal/ retail loans DEMAT account annual maintenance charge Inward cheque return charges FREE FREE Yes Yes FREE FREE FREE FREE Yes Waived Waived Waived local-Waived

8. STAR POWER SAVINGS ACCOUNT Features: No minimum balance/ No ledger folio/ Transactions charges. Free ATM International Debit card/ Free India card (charge card) Free Internet Banking Facility/ Unlimited ATM and Internet Transactions. Free Tele banking/ SMS banking
20

Free personalized cheque books (50 leaves in a year) Free Demat account (for the first year)/facility for online trading of shares Free Multicity cheques* Free utility bills payment through e-pay facility. * At selected centers only. Free multi city cheque would be available to those employees whose average quarterly balance is Rs.50, 000/- or more} Free fund transfer (NEFT/RTGS) facility through Internet Banking Upto Rs.5 lac Terms and Conditions 1. Salary account may be opened for firms/ corporate /government/ semi government undertakings having minimum 25 employees. 2. The institution should open its C/D account with us, wherever possible. 3. Minimum net salary of any employee not to be less than Rs. 10, 000/- p.m. 4. Salary account may be opened only in CBS branches, so that I. Center based salary database is created and provided to the salary paying company/ government department, whenever required (at a cost). II. Simultaneous credit of salary for all the employees in various branches of the company is possible through centralized salary payment scheme in the case of companies having branches in more than one city. III. Salary paying company provides salary particulars in a floppy or soft copy, so that credit can be given to the individual accounts with least work pressure.

9. Jai Jawan Salary Plus Account for Defense Personnel All permanent employees of Defense forces i.e. Indian Army, Indian Air Force and Indian Navy and Coast Guard Details Commissioned Officers Non Commissioned

Officers: Personnel below the rank of commissioned officers Minimum Balance: NIL Free Global Debit Card
21

ATM Cum Debit Card : Free Platinum Debit Card

(No

AMC

Charges)

: At

Banks

ATMlimit

Cash At

Banks

ATMlimit

Cash of

One add on card also for withdrawal joint account holder Rs50000/-

of withdrawal Rs15000/-

At other Banks ATMs - At other Banks ATMs Rs10000/- per day with Rs10000/- per day with maximum 5 free maximum 5 free

withdrawals a month. Air Travel Accidental Rs.5 Lac

withdrawals a month.

Insurance (Star Flier Scheme) Additional Facilities: Internet Banking Star Sandesh Facility RTGS/NEFT payment Free

through internet Banking Mobile Banking

22

II.

Products of Current Deposits 1. Star Benefit CD Plus Accounts 2. Normal Current Deposit Scheme 3. Current Deposits Plus Scheme 4. Bank of India Super Current Plus Account 5. Star Gold Current Account 6. Star Diamond Current Account 7. Star Diamond Plus Account 1. Star Benefit CD Plus Accounts

Name of Scheme Scheme available Minimum Deposits Minimum balance charges Incentives

Star Benefit CD Plus Accounts At all Branches Rs.5000/Rs.100/- per month Three DD/PSI up to Rs.5 Lac each P.M. Free Free Cash Withdrawal up to Rs. 25,000/- from any branch by use of cheque book Free International /Global ATM Cum Debit Card To Individuals & Proprietorship Concerns Free NEFT/RTGS Through Internet Banking

Intersol Charges (Remittance between CBS Branches are applicable for all A/cs Between A/cs with different Customer ID upto Rs. 1.00 lac & Above Rs. 1.00 Lac

Upto Rs. 1.00 Lac free for 1 Transaction of Max. Amt of Rs. 1.00 Lac Per Day. If transactions are more than 1 per day, each

transaction of Transfer of Funds up to Rs. 1.00 Lac is charged @ Rs. 5/-

23

per transaction. Above Rs. 1.00 lac: Rs. 50/- flat.

2. Normal Current Deposit Scheme Name of Scheme Scheme available at branch Eligible Current Account (normal) In all Branches Individual - Single Accounts Two or more individuals - Joint Accounts Sole Proprietary Concerns Partnership Firms Illiterate Persons Blind Persons Minors Limited Companies Associations, Clubs, Societies, etc. Trusts joint Hindu families (accounts of non-trading nature only) Municipalities Government and Quasi-Government Bodies Panchayats Religious Institutions Educational Institutions (including Universities) Charitable Institutions Initial Deposits Minimum balance Incentives Rs.5000/Same as above Free Global Debit cum ATM card to
24

Individuals

and

Prop(Annual

Charges applicable from next year ).. Free NEFT/RTGS through internet Banking. From any branch max. cash

withdrawal through cheque:50000/-, upto 25000/- per day free. Beyond Rs.25000/- charges - Rs.2/- per thousand and cash deposits. Inter-sol fund transfer to third parties a/c is free upto Rs 1 lac per occasion per day.

3. Current Deposits Plus Scheme * Features: A deposit product combining Current & Short deposit account with sweep-in and sweep-out facility to take care of withdrawals, if any. Available at all branches. Facility available to Current Deposit Accounts of Corporate, Proprietorships, Partnerships, Individuals, Schools, Colleges and other institutions (other than Banks). Minimum average quarterly balance of Rs.2,00,000/- in Current Deposit Account and Rs.75,000/- in Short Deposit Account to be maintained initially. Amount in excess of Rs.2,00,000/- will be transferred to the Short Deposit portion in multiples of Rs.75,000/- for a minimum period of 15 days and maximum period of 91 days. To meet urgent requirement of funds in the Current Deposit Account portion, funds in multiples of Rs.75,000/- will be swept-in from Short Deposit portion on last-in first-out (LIFO) basis subject to availability of funds. Automatic renewal facility for original tenure and amount of deposit. Interest will be payable on Short Deposit portion only as per maturity period.

25

Payment before maturity will be allowed without penalty, to meet shortfall if any, subject to availability of fund. Penalty charges of Rs.500/- per quarter will be levied where the average quarterly balance in Current deposit account falls below the minimum stipulated amount. TDS as applicable. Sweep out from current to short deposits will only be an 1st & 16th of every month. Other Incentives: Instant transfer of funds between one Branch to other branch. No charges for remittances of fund From one branch to other branch 6 free remittance - DD / pay order - per quarter up to Rs.50,000/- per transaction. Collection of crossed cheques from the door-steps of the customers maintaining an average monthly balance of Rs.5 lakh i.e. (balance in Current + Short Deposit Account).A monthly charge of Rs.250/- or the actual charges, whichever is higher will be levied. Commission on upcountry cheques at locations where we have branches upto a total value of Rs.25000/- per month will be waived. However, out of pocket expenses will be charged. Waiver of folio charges. Free ATM cards as applicable. (Annual Charges applicable from next year) Free tele-banking facility wherever available. Fortnightly statement of accounts will be sent through e-mail to the customers. Waiver of stop payment charges. Relationship Manager.

26

 Benefits to Customers : Opportunity to earn higher interest on idle funds in Current Deposit Account in short deposit portion. Automatic renewal facility will take away the botheration for keeping track of various maturity dates. No loss of interest on account of before maturity penalties. For the period the Short Deposit has run the customer gets the applicable rate of interest. Opportunity to keep the funds liquid and at the same time earn attractive interest on it.

4. Bank of India Super Current Plus Account Name of Scheme Scheme available at br. Eligible Super Current Plus All CBS branches Individual, Corporate, Proprietorships, And partnerships (other than Banks) Initial Deposits Minimum balance or Qr.Avg. balance Period of Deposit Interest Rate 50 lacs 35 lacs Quar. Avg. + 15 lacs TDR for 1 year 1 year As applicable to deposit of Rs,15.00 lacs & above Charges of non-maintaining minimum qr. Avg. balance Premature withdrawal Incentives Sweep in allowed daily AT CBS branches max. cash 1000/- per quarter

withdrawal Rs:50000/-, upto 25000/per day :No Charges. Beyond Rs.25000/- charges - Rs.2/perRs.1000/-. For Deposit of Cash at other Branch
27

Upto Rs.25000/- :No Charges Over Rs.25000/- Rs 2/-Rs.1000/25% concession on cheque book charges Free NEFT/RTGS through internet Banking

5. Bank of India's Star Diamond & Star Gold Current Accounts. Bank of India offers you 'Star Diamond plus Banking', 'Star Diamond Banking' & 'Star Gold Banking'. An experience that opens the doors to a whole new world of privileged banking. One that's filled with unparalleled advantages. The Star Diamond Plus, Star Diamond & Star Gold Banking status could be the ace up your sleeve that's particularly beneficial in the high-powered business world, making your transactions hassle-free and trade that much simpler. So be a part of a new era in banking, one in which we can share an exclusive and cherished relationship. The Benefits* Tier Gold Diamond Diamond Plus
Average Balance (Rs.) quarterly 50,000

2,00,000 25000

5,00,000 50000

Free

Cash 25000

withdrawal/Deposit from other Branch Free fund transfer 100000 100000 Unlimited

from one Branch to other Br Cheque book charges Normal Free, 2 cheque Free,4

books (100L) in 1 cheque Calendar wef.15-03-10 year books(100L) free 1 Calendar

28

in

year Wef.15.03.10 25% concession over above

free cheques Free remittances Cheque bounce 6/quarter 50000 15/quarter 250000

protection (Rs.) Relationship Manager Door-step banking Yes , at A charge Free available Available

Excluding cash pick up Phone/mobile/internet Free Banking ATM cum debit card *Renewal Charge International Credit Card Statements Instant credit Monthly of 25000 Yes Yes

Free

Free

Yes Free 1 card free

Yes Free 1+1 card free add on

Gold -

Unlimited 1,00,000

Unlimited 1,00,000

outstation cheques Star Speed cheque Free

collection Waiver of Stop Yes Yes

Payment charges Free Instructions Free balance Yes Yes Yes standing Yes Yes

29

certificate Incidental Benefits Available EFT/ECS/RTGS Solvency Certificate NEFT/RTGS Internet banking *Conditions apply. No No Free Free 25% Concession Free

thru Free

30

III.

Products of Term deposits 1. Double Benefit Term Deposit 2. Fixed Term Deposit 3. Short Term Deposit 4. Quarterly Term Deposit 5. Monthly Term Deposit 6. Recurring Term Deposit 7. Star Flexi-Recurring Deposit Scheme

1. Double Benefit Term Deposit Double Benefit Deposits provide a higher yield on the principal at the end of the stipulated period as the interest is compounded on quarterly basis; but, the principal and the accrued interest is paid only at the end of the period for which the deposit is placed with the Bank and not monthly or half-yearly as in the case of other types of deposits. This scheme is useful for short term and medium term investment ordinarily ranging from 12 months to 120 months. KYC (Know Your Customer) Norms for opening account are applicable for these accounts also hence proof of residence and proof of identification will be required along with recent photograph of the depositor/s. Types of Accounts The accounts may be opened in the names of: Individual Single Accounts Two or more individuals Joint Accounts Sole Proprietary Concerns Partnership Firms Illiterate Persons Blind Persons Limited Companies Minors Associations, Clubs, Societies, etc., Trusts
31

Joint Hindu Families (accounts of non-trading nature only) Municipalities Government and Quasi-Government Bodies Panchayats Religious Institutions Educational Institutions (including Universities) Charitable Institutions Period and Amount of Deposit: Deposits under Double Benefit Deposit Scheme are accepted for a fixed period from six months upto a maximum period of 120 months. These deposits, on maturity are repayable with interest compounded on quarterly basis. These deposits may be accepted even for periods where the terminal quarter/half year is incomplete. Minimum amount of Deposit: Minimum amount that may be accepted for the scheme shall be Rs.10,000/-in Metro and Urban Branches and Rs.5000/- at Rural and Semi urban Branches For senior citizens the min amount is Rs5000/Minimum Amount criteria will not be applicable to Subsidy kept under government sponsored Schemes, Margin Money, earnest money and court attached/ordered deposits Payment of Interest: Interest will be paid at the time of maturity along with principal with quarterly compounding. (The payment/credit of interest in the account will be subject to TDS as applicable)PAN number is essential for those accounts where TDS is deducted. Depositors may request repayment of their deposits before maturity. Repayment of term deposits before maturity is permissible in terms of the directives of the Reserve Bank of India issued from time to time. In terms of the directives, the provision regarding premature withdrawal of deposits is as follows:

32

Request for premature withdrawal

No penal interest will be charged. While prematurely closing a

deposit, interest on the deposit for the period that it has remained with the Bank will be paid at the rate applicable to the period for which the deposit remained with the Bank and not at the contracted rate.

2. Fixed/Short Term Deposit Mode of calculation of Interest on Short Deposits and Fixed Deposits for periods less than 12 months: Short Deposits On deposits repayable within six months (Short Deposits) Interest should be paid for the actual ___________ number of days on the basis of 365 days in a year Fixed Deposits On Deposits repayable after six months (Fixed Deposits) Where the terminal month is complete or incomplete. Interest will be calculated for the completed months and where the terminal month is incomplete- the actual number of days on the basis of 365 days in a year.

KYC ( Know Your Customer) for opening account is applicable for these accounts hence proof of residence and proof of identification will be required along with recent photograph of the depositor/s. It is desirable that the Term Deposit account holders also maintain Savings Bank accounts with the Bank so as to avoid delay in disbursement of interest on term deposits or inconvenience to the depositor to call on the Branch to collect interest.
33

For the benefit and convenience, may we suggest that you open a Savings Bank Account with us and give us instructions to credit thereto, half yearly interest on this Term Deposit Receipt.Your interest will earn interest. Minimum amount of Deposit: Minimum amount Rs.1 lac for SDR and Rs.10,000/- for FDR in Metro and Urban Branches and Rs.5000/- in Rural and Semi urban branches and for senior citizens the minimum amount will be Rs 5000/-Minimum amount per single deposit for period of 7days to 14 days will be Rs.1lac. Minimum Amount criteria will not be applicable to Subsidy kept under GOVT Sponsored Schemes, Margin Money, earnest money and court attached/ordered deposits Payment of Interest: (Subject to applicable TDS) Interest will be paid half yearly on 1st October and on 1st April and in case these dates falls on holidays then on the next working day Payment and Renewal of Deposits Before Maturity Depositors may request repayment of their deposits before maturity. Repayment of term deposits before maturity is permissible in terms of the directives of the Reserve Bank of India issued from time to time. In terms of the directives, the provision regarding premature withdrawal of deposits is as follows: Request for premature withdrawal NO Penal Interest on premature payment of deposit. While prematurely closing a

deposit, interest on the deposit for the period that it has remained with the Bank will be paid at the rate applicable to the period for which the deposit remained with the Bank and not at the contracted rate.

34

3. Quarterly/ Monthly Term Deposit Moneys invested in this type of deposit (Quarterly/Monthly Income Certificate) provide fixed monthly income by way of interest to the depositor for a specified period leaving the deposit amount intact. The Quarterly/ monthly interest will be credited to the savings or current account and monthly interest may be credited in recurring deposit account of the depositor according to the instructions. KYC ( Know Your Customer) for opening account is applicable for these accounts also hence proof of residence and proof of identification will be required along with recent photograph of the depositor/s Amount to be Invested Minimum amount that may be accepted for the scheme shall be Rs.10,000/-in Metro and Urban Branches and Rs.5000/- at Rural and Semi urban Branches for senior citizens the minimum amount will be Rs 5000/Minimum Amount criteria will not be applicable to Subsidy kept under GOVT Sponsored Schemes, Margin Money, earnest money and court attached/ordered deposits Payment of Interest (Monthly/Quarterly) Subject to applicable TDS: Depositor may receive interest every month at monthly discounted value. A depositor may receive interest every quarter at actual in which case the deposits will, for all practical purposes, be treated as deposits under the Bank's Fixed Deposit Scheme with an endorsement to the effect that the interest will be paid every quarter. Maximum period for acceptance of deposit would be ten years. 4. Recurring Term Deposit Recurring Deposit is a special type of deposit account which enables a depositor particularly in fixed income group to save by paying into the account an agreed fixed sum of money monthly over a stipulated period. The deposits in this type of account earn compound interest on quarterly basis. Longer the period for which monthly deposits are agreed to be made higher is the rate of interest subject to rules. KYC (Know Your Customer) Norms for opening account are applicable for these accounts also hence proof of residence and proof of identification will be required along with recent photograph of the depositor/s.

35

 Types of Accounts Only individuals are eligible to open accounts under the scheme. Thus, the Recurring Deposit Accounts can be opened in the names of : Individual Single Accounts Two or more individuals Joint Accounts Illiterate Persons Blind Persons Minors Opening of Accounts A Recurring Deposit account where the compounding of interest is to be done on quarterly basis shall be accepted for periods in multiples of three months only upto the maximum period of ten years.. Minimum Amount of monthly installment Recurring Deposits will be in equal monthly installments. The core monthly installment should be minimum Rs. 500/ in Metro and urban Branches and Rs.100/- or above in Semi urban/Rural Branches and in its multiples. There is no maximum limit. Installments of any calendar month should be paid on or before last working day of that calendar month and if it is not so paid. NO TDS is applicable in these accounts Rate of Interest: As applicable for Term Deposits depending upon the period/maturity. No Interest will be paid if payment is taken within three months. 5. Star Flexi-Recurring Deposit Scheme Star Flexi Recurring Deposit offers flexibility to invest surplus fund Features Eligibility: Individuals & Joint Accounts (Including Minors). Nomination Facility: Available Minimum amount of Monthly Installments: Rs.1000/- will be Minimum Core Monthly Installment Maximum amount of Monthly Installments: Rs.10,000/- will be the Maximum core Monthly Installment

36

Flexi Installment: Any amount in multiples of Rs.1,000/-. (Only one core & one flexi installment per month). Maximum flexi installment can be 10 times the core installment. Period: Minimum 12 months & Maximum 10 years. (In multiples of 3 months only) Interest Rate: Core Installments (Fixed Rate) : As applicable for the period for which the A/c is opened. Flexible Installments: Applicable rate at the time of deposit of the Flexible installment. For e.g. A Customer opens a Flexi RD account on 01/11/2006 for 3 years with Core installment of Rs.1000/-. Customer will get interest @ 7.25% for Core portion of Rs.1,000/- for 3 yrs. If on 01/03/2007 he deposits Rs.3,000 in his account, then for flexi portion of Rs.2,000/-, he would get Interest for 2 yrs and 7 months at the rate prevalent on 1-3-2007 (which, as of today is 7%). Thus, there would be multi rates of interest in the A/c. Penalty: As per applicable rules for delay / non-receipt of core installments Maturity Value: Will be calculated by the System, depending on the amount of flexi installments; no fixed Maturity Value. Tax treatment: No TDS (R/D Accounts are exempted from TDS as per present rules.) Other terms and conditions: No advance core installments. Amount deposited above core installments will be considered as Flexi installments for that month. Standing Instructions will be accepted only for the core installments. Core Installment would be a fixed amount, to be decided at the time of opening the RD A/c. It cannot vary subsequently. Core installment would have to be paid every month, to avoid penalty Core Installments cannot be paid in advance. Flexi installment would be in multiples of Rs.1,000/- and can be deposited only once in a month.

37

Flexi installment can be maximum 10 times the core installment. If a customer opens a Flexi RD A/c for Rs.1,000/- p.m., the maximum amount that can be accepted in the account in any one month, would be Rs.11,000/- (i.e. Rs.1,000/- + Rs.10,000/-). There would be only one maturity date for both core and flexi portions. Flexi installment and the core installment need not be deposited together. They can be paid on different dates in the same month. Standing instructions can be accepted only for the Core installment. No standing instruction should be accepted for Flexi installments. No Flexi installment should be accepted in the last month of the RD A/c. (i.e. if a RD A/c is opened for 36 months, Flexi installment can be accepted from the 1st to the 35th month only). No Passbooks will be issued for Flexi RD Accounts. Only system-generated statements are to be issued to the customers. No auto-renewal of the maturity proceeds permitted. Instead, the proceeds may be credited to SB A/c. if no other instructions are received. In case there are any core installments in arrears, any extra amount deposited by the customer, would first go to adjust the defaulted core installments. Previously paid flexi installments cannot be adjusted towards future core installments. Normal penalty rules would apply for delayed credits of the core installments. No penalty would however, apply for non-payment of flexi installments, as these are purely optional. Present penalty rules are as under for the core installments: a) Rs.1.50 per Rs.100/- p.m. for deposits of 5 years and less; b) Rs.2.00 per Rs.100/- p.m. for deposits of over 5 years. In the case of premature closure of a Flexi RD A/c, no interest would be payable on the core & Flexi installments, if the A/c is closed within 3 months of opening the same. If the A/c is closed after 3 months, but before maturity, normal penalty rules for premature closure would apply (i.e. compound interest at the reduced rate for the completed quarters and simple interest at the reduced rate for the last broken quarter, for the respective deposits).
38

IV.

Products of Tax saving deposits 1. Star Sunidhi Tax-Saving Deposit Scheme 2. Capital Gain Tax Saving Scheme

1. Star Sunidhi Tax-Saving Deposit Scheme A Scheme for long term savings investments, with Income Tax Benefits. Eligible Minimum Deposit Maximum Deposit Tenure Individuals & HUFs having PAN Numbers Rs.10,000/Rs.1,00,000/- p.a. Minimum-5 years Maximum-Upto & including 10 years Rate of interest As applicable to our normal domestic term deposits Premature withdrawal Applicability Nomination Facility Advance Facility Not Permitted upto 5 years. All branches in India Available Not available for a period of 5 years from The Date of Deposit Other Benefits Tax Exemption u/s 80c of the Income Tax Act Other Terms and Conditions In the case of Joint Accounts, only the first named Depositor will be eligible for deduction under

Section 80c of the Income Tax Act. No nomination shall be made in respect of a Term Deposit applied for and held by or on behalf of a Minor. The Term Deposit shall not be pledged to secure a loan or as
39

security to any other advance. Other terms and conditions as applicable Deposits. to normal Term

2. Capital Gain Tax Saving Scheme CAPITAL GAIN ACCOUNTS SCHEME 1988 Capital Gain Accounts Scheme 1988 is applicable to eligible taxpayers who wish to claim exemption u/s 54 for capital gain. 1 Branches Authorized Non Rural Branches (i.e. All Semi

Urban/Urban/Metro Branches 2 Types of Accounts Account A (Savings Bank) Account B (Term Deposit cumulative/ non-cumulative) (Savings Plus Scheme not permitted) 3 Account Opening Form( Form A (in duplicate) + Proof of Address + Copy of PAN Card + Photograph + unstamped HUF Letter in case of account is for HUF (non-trading) 4 Rate of Interest Account A Applicable to SB Accounts Account B As per Banks TDR Rates. 5 Withdrawal## Amount can be withdrawn from deposit A (Savings Bank Account) by furnishing an application in form C along with Pass Book.( No cheque book will be issued.) ## Premature withdrawal from Deposit B (TDR) is permitted by converting account from B to A and by levying 1% penal interest for premature payment as in case of TDRs. Form B will be used for conversion of Account B to A. 6 Further withdrawal For subsequent withdrawal form D (in duplicate) by giving the details showing the manner/ purpose for which the previous
40

KYC compliance)

withdrawal has been utilized Banks are not obliged to allow further withdrawal if above referred particulars are not furnished. 7 Mode of payment Any withdrawal over Rs.25,000/- should be affected by Bank, only by crossed DD. 8 Utilization withdrawn of Amount Amount drawn from Account A has to be utilized within 60 days from the date of such withdrawal for the purpose mentioned in the relevant sections. Unutilized amount should be re-deposited in Account A immediately. Non-compliance of this rule will render the depositor to lose exemptions under relevant section. 9 No Lien Amount cannot be placed or offered as Security for any loan or guarantee and cannot be charged or alienated. 10 Transfer of Account Account can be transferred to another Branch of the same Bank. 11 Interest Exemption under I. Interest is not exempted under Income Tax T. Act 1961 Act, 1961.TDS will be deducted at applicable rates on TDRs. 15 Issue of Duplicate Pass Book In the event of loss or destruction of pass or Receipt book or receipt, the branch may issue, on application made to it, a duplicate thereof 16 Closure of Account Application in Form G with the approval of Assessing Officer who has jurisdiction to the depositor. If depositor dies, the nominee will make application in Form H with the approval of Assessing Officer (having jurisdiction over deceased depositor)
41

If there is no nomination then legal heirs will apply in form H with the approval of Assessing Officer (having jurisdiction over deceased depositor). 17 Overdue Deposit Bank may renew an overdue Term Deposit under Capital Gains Account Scheme and allow interest on such renewed TDR or a portion thereof from the date of maturity of deposit.

42

CHAPTER 5. COMPARATIVE ANALYSIS OF BANK OF INDIA & AXIS BANK

CASA to Total Deposits Time Deposits to Total Deposits Credit to Total Deposit Investment to Total Deposit Cash to Total Deposit Trend of deposits NIM (Net Interest Margin)

Bank of India Particulars Deposits: Savings Bank Deposits current account /Demand Deposits time Deposits Total Deposits CASA Total investments Total loan

(In Thousands) 2013 2012 GROWTH

776,212,260 202,857,472 2,839,326,127 3,818,395,859 979,069,732 946,134,318 2,893,674,972

668,446,179 179,609,493 2,334,104,660 3,182,160,332 848,055,672 867,535,861 2,488,333,442

16.12% 12.94% 21.65% 19.99% 15.45% 9.06 16.29

43

Axis bank Particulars Deposits Out of which Savings Bank Deposits Current Account Deposits time deposits Deposits of branches in India Deposits of branches outside India Total Deposits CASA Total investments Total loan 1. Growth of Total Deposits:
4,500,000,000 4,000,000,000 3,500,000,000 3,000,000,000 2,500,000,000 2,000,000,000 1,500,000,000 1,000,000,000 500,000,000 0 2012 2,201,043,033 3,182,160,332

(In Thousands) 2012-13 2011-12 Growth

637,777,349 483,220,974 1,405,137,558 2,386,893,082 139,242,799

516,679,577 397,540,719 1,286,822,737 2,094,495,868 106,547,165

23.44% 21.55% 9.19% 13.96% 30.69%

2,526,135,881 1120998323 1,137,375,370 1,969,659,574

2,201,043,033 914220296 931,920,859 1,697,595,386

14.76% 22.61% 22.05% 16.03%

Growth rate is 19.99%

3,818,395,859

Growth rate is 14.76%

2,526,135,881

BOI Axis Bank 2013

Comments In case of Bank of India the Total Deposit increasing at a 19.99% on the other hand Axis Banks deposit increasing at a 14.76%. In Bank of India the time deposits plays vital role because the amount deposited in time deposits is significant and on other hand Axis Bank the time deposits is low but casa deposits are more.
44

2. CASA Ratio: S.R. No. Ratio Bank of India 2012-13 1) CASA Ratio= CASA Total Deposit 979,069,732 3,818,395,859 =25.64% 848,055,672 3,182,160,332 =26.65% 1,120,998,323 2,526,135,881 =44.38% 914,220,296 2,201,043,033 =41.54% 2011-12 Axis Bank 2012-13 2011-12

45 40 35 30 25 20 15 10 5 0 2011-12 2012-2013 Axis Bank BOI 26.65% 25.64% 41.54% 44.38%

BOI Axis Bank

Comments: CASA to Total Deposit Ratio in case of Bank of India is decreasing in 2012-13 by 1.01, and in case of Axis bank the CASA ratio increased in 2012-13 by 2.84. CASA Ratio is decreasing in case of Bank of India so it is not good for Bank of India, the less money they are getting at low cost. In case of Axis Bank it shows a high CASA ratio indicates that a higher portion of the banks deposits come from current and savings accounts, his means that the bank is getting money at low cost, since no interest is paid on the current accounts and the interest paid on savings account is usually low.

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3. Time Deposits S.R. No. 2012-13 2) Time Deposits to Total Deposits = Time Deposits Total Deposits 2,839,326,127 3,818,395,859 =74.36% 2,334,104,660 3,182,160,332 =73.35% 1,405,137,558 2,526,135,881 =55.62% 1,286,822,737 2,201,043,033 =58.46% 2011-12 2012-13 2011-12 Ratio Bank of India Axis Bank

80 70 60 50 40 30 20 10 0 2011-12 73.35%

58.46% 55.62% 74.36% BOI Axis Bank Axis Bank BOI 2012-13

Comments: In case of Bank of India time deposit ratio increased in 2012-13 by 1.01, and on other hand Axis bank time deposit decreased by 2.84 in year 2012-13. It is positive when it is increasing when it is decreasing it is not good for the bank. In Bank of India time deposits increasing on other hand CASA deposits are decreasing and it is good for banks.

46

4. Credit deposit ratio: S.R. No. 2012-13 3) Credit to Total Deposit = Credit Total Deposits 2,893,674,972 3,818,395,859 = 75.78% 2,488,333,442 1,969,659,574 3,182,160,332 = 78.20% 1,697,595,386 2011-12 2012-13 2011-2012 Ratio Bank of India Axis Bank

2,526,135,881 2,201,043,033 = 77.97% =77.13%

78.50 78.00 77.50 78.20% 77.00 76.50 76.00 75.50 75.00 74.50 2011-12 2012-13 75.78% 77.13%

77.97%

BOI Axis Bank

Axis Bank BOI

Comments In case of Bank of India the credit deposit ratio is decreased by 2.42% in 2012-13 it is good for the bank, but the ideal ratio is 65 to 75. In year 2012-13 it is not as per ideal ratio but it is decreasing so it is positive. It is negative in case of Axis Bank instead of decreasing it is increased by 0.87 if instead of decrease it increase it means that bank will not have enough liquidity to cover any unforeseen fund requirements.

47

5. Investment-deposit ratio S.R. Ratio No. 2012-13 4) Investment to Total Deposit = Investment Total Deposit Bank of India 2011-12 2012-13 Axis Bank 2011-12 931,920,859 2,201,043,033 = 42.34%

946,134,318 867,535,861 1,137,375,370 3,818,395,859 3,182,160,332 2,526,135,881 = 24.78% = 27.26% = 45.02%

50 45 40 35 30 25 20 15 10 5 0 2011-12 27.26%

42.34%

45.02%

24.78%

BOI Axis Bank

Axis Bank BOI 2012-13

Comments: In case of Bank of India the investment deposit ratio is decreased by 2.48% and in case of Axis bank it is decreased by 2.68%. Actually this ratio not much affect to the banks.

48

6. Cash- Deposit ratio: S.R. Ratio No. 5) Bank of India 2012-13 204,349,599 2,526,135,881 = 8.09% Axis Bank 2011-12 139,339,157 2,201,043,033 = 6.33%

2012-13 2011-12 Cash to Total Deposit = 548,358,594 347,112,545 Cash 3,818,395,859 3,182,160,332 Total Deposits = 14.36% = 10.91%

16 14.36% 14 12 10 8 6 4 2 0 2011-12 2012-13 BOI Axis Bank 10.91% 6.33% 8.09% BOI Axis Bank

Comments: The amount of money a bank should have available as a percentage of the total amount of money its customers have paid into the bank. This amount is calculated so that customers can be sure that they will be able to take their money out of the bank if they want to. In both the banks the ratio is increased, in case of Bank of India it is increased by 3.45% and on other hand it is 1.76%.

49

7. Net interest Margin Bank of India Net Interest Margin: Interest earned Interest expended Average earning assets NIM Axis Bank Net Interest Margin: Interest earned Interest expended Average earning assets NIM 2,013 319,089,290 228,849,298 3,597,839,297 2.51% 2,013 271,825,744 175,163,111 2,868,275,595 3.37% 2,012 284,806,664 201,672,330 3,597,839,297 2.31% 2,012 219,946,474 139,769,024 2,868,275,595 2.80%

3.37% 3.5 3 2.5 2 1.5 1 0.5 0 2012 2013 BOI Axis Bank 2.31% 2.51% 2.8%

BOI Axis Bank

Comments: NIM is increasing in both the case and it is good, NIM means Interest EarnedInterest Expended)/Average Earning Assets.

50

CHAPTER 6. ANALYSIS OF THE SURVEY CONDUCTED ON DEPOSITS SCHEMES (COVERED BY BANK OF INDIA & AXIS BANK)
Sample size: 50 Targeted age group: working class between age group of 21-50. Targeted people: people who have their accounts in BANK OF INDIA and Axis bank respectively. People who have their accounts in bank of India and Axis Bank respectively & also people who are planning to invest their money in deposit schemes in future.

1. For which purpose, the public prefers to invest in deposit schemes? Answer: 85% the public invest in deposit schemes for safety of their investments, 7% are investing for the purpose of savings and to 8% invest for earn some returns.

8% 7% Safety Saving 85% Earn Interest

Comments: The pie chart shows that most of the people invest for the purpose of safety; it means they found bank deposit safer as compare to other investment avenues.

51

2. What type of interest rate is more preferred by the public?

20%

Fixed Rate 80% Floating Rate

Comments: The diagram shows that 80% people preferred fixed rate of interest and 20% floating, it means people are not ready to take risk. According to me, they might be think that in future the interest rate will come down. 3. Does the public plan to invest in deposit schemes in future?

7% Planning to invest in deposits Not planning to invest in deposits

93%

Comments: The diagram shows that 93% of the people are planning to invest in deposit in future and 7% of not planning to invest in deposits. It means more people are feeling that banks are more reliable source to invest.

52

4. According to the public, the procedure for deposit schemes is?

20% Convenient 80% Lengthy

Comments: 80% of the public finds the procedure convenient while 20% finds it lengthy.

5. Which bank is more preferred by the public for investing in deposit schemes?
5% 40% Public bnak Private Bank Foreign Bnka

55%

Comments: This indicates that people are not finding their investments safe in foreign banks. 55% of the people preferred to invest in public bank, 40% people preferred private banks and rest of the 5% are willing to invest in foreign bank. Most of the people are preferring public and private sector banks investment.

53

6. In which account the public is more interested to invest their funds?

6% 45% 43% Saving Deposit Recurring Deposit Fixed deposit 6% Current Deposit

Comments: This pie chart indicates that, 45% people are more interested to invest in Saving deposits, 43% in fixed deposits, 6% in both recurring and current deposits. This shows that savings deposit and fixed deposit is the most popular deposit schemes. 7. Is the public aware of the various deposit schemes provided?
86% 100 80 60 40 20 0 16% 14% BOI Axis Bank 84%

Comments: In Bank of India 84% are aware and rest of the 16% are not about the various deposit schemes. In Axis Bank 86% are aware and rest of the 14% are not aware about the various deposit schemes.

54

8. Is the public satisfied with the service provided by the bank?

100 90 80 70 60 50 40 30 20 10 0

95%

96%

yes No 5% 4%

BOI

Axis Bank

Comments: In Bank of India 95% are satisfied with the services provided and 5% are not satisfied and on other hand 96% are satisfied and 4% are not. 9. Bank of India, being public bank would you like to switch to a private sector bank? And Axis being a private sector bank would you like to switch to public bank?
Answer:

a. In case of Bank of India, when asked whether the public would like to switch to the private sector only 10% of the publics were willing to move towards the private sector. b. In case of Axis bank, when asked whether the public would like to switch to the public sector, only 9% of the people were willing to move towards the public sector. Comments: In Case Of Bank of India: Bank of India is the good bank in the public sector. It is the trusted and popular bank in the public sector. According to the public, the interest rates should be increased a little and the services should be more professionalized.

55

In Case Of Axis Bank: Axis bank is the good bank in the private sector and the popular in India. According to the public, Axis bank provides very good services. Their transactions are fully professionalized and easy and hence, it is less time consuming for the public.

56

BIBLIOGRAPHY

1. http://www.iba.org.in/Model%20Policy/Model%20Policy%20on%20Bank%20De posits.pdf 2. Annual report of Bank of India 2012-13 3. Annual report of Axis Bank 2012-13 4. www.moneycontrol.com 5. www.bankofindia.com 6. www.axisbank.com

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Annexure
SURVEY FOR PROJECT ON DEPOSIT SCHEMES (COVERED BY BOI AND Axis BANK) NAME: AGE: DESGNATION: CONTACT NO.: SIGNATURE: 1. For which purpose would you like to invest in deposit schemes?

2. Which bank would you prefer for investing in deposits schemes? Private Public foreign

3. What type of interest rate do you prefer? Fixed Floating

4. In which account are you more interested to invest your funds? Saving Recurring

Fixed Deposits

Current

5. Do you plan to invest in deposit schemes in future? Yes No

6. According to you the procedure for deposit scheme is? Convenient Lengthy

7. Are you aware of the various deposits schemes provided by BOI /Axis Bank? Yes No

8. Do you like the service provided by BOI/ ICICI/Axis Bank? Yes No

58

9. BOI, being public bank would you like to switch to a private sector bank? And Axis being a private sector bank would you like to switch to public bank? If yes, then why? If no, then why? COMMENTS:

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