SESSION 2011

Programme : MBA- 4
th
Sem.
Submitted To : Submitted By :
Mrs. Shipra Pandey Ali Muddin Ahmad
(Faculty Falcon !n"osys# $oll
%o:&'()&*('+
ST,-. /0%T$0
P$0FA/0
Summer training is a very important part of an MBA (BA) curriculum. It provides an
optimistic iconography for Future eistence through !hich students are a"le to see the real
industrial environment !hich gives an opportunity to relate theory !ith practice.
I undertoo# t!o months training programme at Oriental Bank of Commerce (Bhadra#) and
!or#ed on the pro$ect Capital Budgeting at OBC . %his report is the #no!ledge ac&uired "y
me during this period of training.

ACKNOWLEDGEMENT
Before I get into the depth of the thing' I !ould li#e to add a fe! heartfelt !ords for
the people !ho at various stages of the pro$ect development helped me "y their valua"le
guidance.
First and foremost I !ould li#e to pay my sincere gratitude !hich I o!e to Mrs. HEMA
MIRZI (course coordinator' and !r. "IR#I $%&#A (pro'ect guide' for their valued help
and guidance !hich they gave me !hen I needed it the most. It !as only due to their sincere help
and efforts that I !as a"le to end up !ith this pro$ect.
I o!e special than#s to !r.(I#I( (AI"' (irector of )I*S%I%+%, -F
MA*A.,M,*% / ,*%0,10,*,+0S2I1 (,34-1M,*%'5 1une and Mr. &RA!EE&
"%MAR &A(!A (Branc) Manager* B)adrak for his valua"le co6operation and guidance in
completing the pro$ect !or#.
4ast "ut not the least7 I !ould li#e to pay our gratitude to my &ARE(#+' !ithout their
help and "lessing I cant ta#e a single step in right direction.
student name



DECLARATION
I 8handra#anta 1anigrahi' a student of )I*S%I%+%, -F
MA*A.,M,*% / ,*%0,10,*,+0S2I1 (,34-1M,*%5' 1une' and
session (9::;6<:) "earing Roll No.:0!o" M#A $#A% and +niversity 10* no.=6
;::::<9>;' here"y declare that the pro$ect report entitled )8+S%-M,0
SA%ISFA8%I-*5 (-0I,*%A4 BA*? -F 8-MM,08,.) is the outcome of my
o!n !or# and the same has not "een su"mitted to any college for the a!ard.
Date:
&la'e:
$C(and)a*anta &an+,)a(+%

I(!E,
S.%1. /2APT0$S PA30 %1.
1. Int)odu't+on o" t(e su-.e't !1/
2. Com0an1 &)o2le 1341
Int)odu't+on o" t(e Com0an1 1!
Mana,ement &)o2le 15
Com0et+to)s 20
&)odu't and Se)6+'es 22
7utu)e o" #an*+n, +n Ind+a 25
A'(+e6ements and A8a)ds 40
Com0an1 M+ss+on9 :+s+on and :alue 41
4. Resea)'( Met(odolo,1 424!
Statement o" t(e 0)o-lem 4;
O-.e't+6e 4/
Sam0le S+<e 9Met(ods and Data Colle't+on 43
L+m+tat+on o" t(e Stud1 4!
;. Anal1s+s And Inte)0)etat+on 45;5
/. 7+nd+n,s and Con'lus+on ;=
3. Su,,est+ons /2
!. A00end+'es /;/3
#+-l+o,)a0(1 //
Custome) 7eed-a'* 7o)m /3


8apital "udgeting is a re&uired managerial tool. -ne duty of a financial manager is to choose
investments !ith satisfactory cash flo!s and rates of return. %herefore' a financial manager must
"e a"le to decide !hether an investment is !orth underta#ing and "e a"le to choose intelligently
"et!een t!o or more alternatives. %o do this' a sound procedure to evaluate' compare' and select
pro$ects is needed. %his procedure is called capital -udgeting.
I. CA&I#A. I+ A .IMI#E! RE+O%RCE
In the form of either de"t or e&uity' capital is a very limited resource. %here is a limit to the
volume of credit that the "an#ing system can create in the economy. 8ommercial "an#s and
other lending institutions have limited deposits from !hich they can lend money to individuals'
corporations' and governments. In addition' the Federal 0eserve System re&uires each "an# to
maintain part of its deposits as reserves. 2aving limited resources to lend' lending institutions
are selective in etending loans to their customers. But even if a "an# !ere to etend unlimited
loans to a company' the management of that company !ould need to consider the impact that
increasing loans !ould have on the overall cost of financing.
In reality' any firm has limited "orro!ing resources that should "e allocated among the "est
investment alternatives. -ne might argue that a company can issue an almost unlimited amount
of common stoc# to raise capital. Increasing the num"er of shares of company stoc#' ho!ever'
!ill serve only to distri"ute the same amount of e&uity among a greater num"er of shareholders.
In other !ords' as the num"er of shares of a company increases' the company o!nership of the
individual stoc#holder may proportionally decrease.
%he argument that capital is a limited resource is true of any form of capital' !hether de"t or
e&uity (short6term or long6term' common stoc#) or retained earnings' accounts paya"le or notes
paya"le' and so on. ,ven the "est6#no!n firm in an industry or a community can increase its
"orro!ing up to a certain limit. -nce this point has "een reached' the firm !ill either "e denied
more credit or "e charged a higher interest rate' ma#ing "orro!ing a less desira"le !ay to raise
capital.
Faced !ith limited sources of capital' management should carefully decide !hether a
particular pro$ect is economically accepta"le. In the case of more than one pro$ect' management
must identify the pro$ects that !ill contri"ute most to profits and' conse&uently' to the value (or
!ealth) of the firm. %his' in essence' is the "asis of capital "udgeting.
/O% +HO%.! REMEMBER
8apital "udgeting is investment decision6ma#ing as to !hether a pro$ect is !orth
underta#ing. 8apital "udgeting is "asically concerned !ith the $ustification of capital
ependitures.
8urrent ependitures are short6term and are completely !ritten off in the same year that
epenses occur. 8apital ependitures are long6term and are amorti@ed over a period of
years are re&uired "y the I0S.
II. Basic Steps of Capital Budgeting
<. ,stimate the cash flo!s
9. Assess the ris#iness of the cash flo!s.
A. (etermine the appropriate discount rate.
B. Find the 13 of the epected cash flo!s.
>. Accept the pro$ect if 13 of inflo!s C costs.
I00 C 2urdle 0ate andDor
pay"ac# E policy
!efinitions0
Independent versus mutually eclusive pro$ects.
*ormal versus nonnormal pro$ects.
Basic !ata
E1pected (et Cas) 2lo3
/ear
&ro'ect . &ro'ect +
:
<
9
A
(F<::)
<:
G:
;:
(F<::)
H:
>:
9:
III. E4aluation #ec)ni5ues
A. &a6-ack period
B. *et present value (*13)
8. Internal rate of return (I00)
(. Modified internal rate of return (MI00)
,. 1rofita"ility inde
A. &A/BAC" &ERIO!
1ay"ac# period I ,pected num"er of years re&uired to
recover a pro$ects cost.
&ro'ect .
E1pected (et Cas) 2lo3
/ear
&ro'ect . &ro'ect +
:
<
(F<::)
<:
(F<::)
(J:)
9
A
G:
;:
(A:)
>:
1ay"ac#4 I 9 K FA:DF;: years
I 9.B years.
1ay"ac#S I <.G years.
7eaknesses of &a6-ack0
<. Ignores the time value of money. %his !ea#ness is
eliminated !ith the discounted pay"ac# method.
9. Ignores cash flo!s occurring after the pay"ac# period.
B. NET PRESENT VALUE

= +
=
n
: t
t
#) (<
t
8F
*13
&ro'ect .0
0 1 2
4
100.00 10 30
50
J.:J
BJ.>J
G:.<<
*134 I F <;.HJ
*13S I F<J.J;
If the pro$ects are independent' accept "oth.
If the pro$ects are mutually eclusive' accept 1ro$ect S since
*13S C *134.
(ote0 *13 declines as # increases' and *13 rises as #
decreases.
C. I(#ER(A. RA#E O2 RE#%R(
( )
*13 F:
n
: t
t
I00 <
t
8F
= I00 = =

= +
.
&ro'ect .0
;.BH
BA.:9
B;.>H
F :.:G F:
I004 I <;.<L
I00S I 9A.GL
If the pro$ects are independent' accept "oth "ecause I00 C #.
0 1 2
4
100.00 10 30
50
15.1>
15.1>
15.1>
If the pro$ects are mutually eclusive' accept 1ro$ect S since
I00S C I004.
(ote0 I00 is independent of the cost of capital.
4 %P5
6
%P5
S
0>
/
10
?/0
44
1=
?;0
2=
20
/0
;0
40
20
10
0
10
/ 10 1/ 20 2/
*$>%
Crossover Point = 8.7%
IRR
S
= 23.6%
IRR
L
= 18.1%
N&:
$?%
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<. A(3A*%A.,S A*( (ISA(3A*%A.,S -F I00 A*( *13
A num"er of surveys have sho!n that' in practice' the I00 method is more popular than the *13
approach. %he reason may "e that the I00 is straightfor!ard' "ut it uses cash flo!s and
recogni@es the time value of money' li#e the *13. In other !ords' !hile the I00 method is easy
and understanda"le' it does not have the dra!"ac#s of the A00 and the pay"ac# period' "oth of
!hich ignore the time value of money.
%he main pro"lem !ith the I00 method is that it often gives unrealistic rates of return.
Suppose the cutoff rate is <<L and the I00 is calculated as B:L. (oes this mean that the
management should immediately accept the pro$ect "ecause its I00 is B:L. %he ans!er is noM
An I00 of B:L assumes that a firm has the opportunity to reinvest future cash flo!s at B:L. If
past eperience and the economy indicate that B:L is an unrealistic rate for future reinvestments'
an I00 of B:L is suspect. Simply spea#ing' an I00 of B:L is too good to "e trueM So unless the
calculated I00 is a reasona"le rate for reinvestment of future cash flo!s' it should not "e used as
a yardstic# to accept or re$ect a pro$ect.
Another pro"lem !ith the I00 method is that it may give different rates of return. Suppose
there are t!o discount rates (t!o I00s) that ma#e the present value e&ual to the initial
investment. In this case' !hich rate should "e used for comparison !ith the cutoff rateN %he
purpose of this &uestion is not to resolve the cases !here there are different I00s. %he purpose
is to let you #no! that the I00 method' despite its popularity in the "usiness !orld' entails more
pro"lems than a practitioner may thin#.
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2. WHY THE NPV AND IRR SOMETIMES SELECT DIFFERENT PROJECTS
Ohen comparing t!o pro$ects' the use of the *13 and the I00 methods may give different
results. A pro$ect selected according to the *13 may "e re$ected if the I00 method is used.
Suppose there are t!o alternative pro$ects' P and Q. %he initial investment in each pro$ect is
F9'>::. 1ro$ect P !ill provide annual cash flo!s of F>:: for the net <: years. 1ro$ect Q has
annual cash flo!s of F<::' F9::' FA::' FB::' F>::' FG::' FH::' F;::' FJ::' and F<'::: in the
same period. +sing the trial and error method eplained "efore' you find that the I00 of 1ro$ect
P is <HL and the I00 of 1ro$ect Q is around <AL. If you use the I00' 1ro$ect P should "e
preferred "ecause its I00 is BL more than the I00 of 1ro$ect Q. But !hat happens to your
decision if the *13 method is usedN %he ans!er is that the decision !ill change depending on
the discount rate you use. For instance' at a >L discount rate' 1ro$ect Q has a higher *13 than P
does. But at a discount rate of ;L' 1ro$ect P is preferred "ecause of a higher *13.
%he purpose of this numerical eample is to illustrate an important distinction= %he use of
the I00 al!ays leads to the selection of the same pro$ect' !hereas pro$ect selection using the
*13 method depends on the discount rate chosen.
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10-R,8% SIS, A*( 4IF,
%here are reasons !hy the *13 and the I00 are sometimes in conflict= the si@e and life of the
pro$ect "eing studied are the most common ones. A <:6year pro$ect !ith an initial investment of
F<::'::: can hardly "e compared !ith a small A6year pro$ect costing F<:':::. Actually' the
large pro$ect could "e thought of as ten small pro$ects. So if you insist on using the I00 and the
*13 methods to compare a "ig' long6term pro$ect !ith a small' short6term pro$ect' dont "e
surprised if you get different selection results. (See the e&uivalent annual annuity discussed later
for a good !ay to compare pro$ects !ith une&ual lives.)
(IFF,0,*% 8AS2 F4-OS
Furthermore' even t!o pro$ects of the same length may have different patterns of cash flo!. %he
cash flo! of one pro$ect may continuously increase over time' !hile the cash flo!s of the other
pro$ect may increase' decrease' stop' or "ecome negative. %hese t!o pro$ects have completely
different forms of cash flo!' and if the discount rate is changed !hen using the *13 approach'
the result !ill pro"a"ly "e different orders of ran#ing. For eample' at <:L the *13 of 1ro$ect
A may "e higher than that of 1ro$ect B. As soon as you change the discount rate to <>L' 1ro$ect
B may "e more attractive.
WHEN ARE THE NPV AND IRR RELIABLE?
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.enerally spea#ing' you can use and rely on "oth the *13 and the I00 if t!o conditions are
met. First' if pro$ects are compared using the *13' a discount rate that fairly reflects the ris#
of each pro$ect should "e chosen. %here is no pro"lem if t!o pro$ects are discounted at t!o
different rates "ecause one pro$ect is ris#ier than the other. 0emem"er that the result of the
*13 is as relia"le as the discount rate that is chosen. If the discount rate is unrealistic' the
decision to accept or re$ect the pro$ect is "aseless and unrelia"le. Second' if the I00 method
is used' the pro$ect must not "e accepted only "ecause its I00 is very high. Management
must as# !hether such an impressive I00 is possi"le to maintain. In other !ords'
management should loo# into past records' and eisting and future "usiness' to see !hether an
opportunity to reinvest cash flo!s at such a high I00 really eists. If the firm is convinced
that such an I00 is realistic' the pro$ect is accepta"le. -ther!ise' the pro$ect must "e
reevaluated "y the *13 method' using a more realistic discount rate.
@OA SBOALD REMEM#ER
T(e +nte)nal )ate o" )etu)n $IRR% +s a 0o0ula) met(od +n 'a0+tal -ud,et+n,. T(e
IRR +s a d+s'ount )ate t(at ma*es t(e 0)esent 6alue o" est+mated 'as( Co8s eDual
to t(e +n+t+al +n6estment. Bo8e6e)9 8(en us+n, t(e IRR9 1ou s(ould ma*e su)e
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Modified IRR (MIRR
%he MI00 is similar to the I00' "ut is theoretically superior in that it overcomes t!o
!ea#nesses of the I00. %he MI00 correctly assumes reinvestment at the pro$ects cost of
capital and avoids the pro"lem of multiple I00s. 2o!ever' please note that the MI00 is not
used as !idely as the I00 in practice.
%here are A "asic steps of the MI00=
(<) ,stimate all cash flo!s as in I00.
(9) 8alculate the future value of all cash inflo!s at the last year of the pro$ects life.
(A) (etermine the discount rate that causes the future value of all cash inflo!s determined in
step 9' to "e e&ual to the firms investment at time @ero. %his discount rate is #no! as the
MI00.
&ro'ect .0
0 1 2
4
100.00 10 30
50.00
33.00
12 .10
?1/5.10 E T: o"
100 .00
? 0 .00 E
N&:
13 outflo!s I F<::
&:'osts E
( )
n
MI00 <
%3
+
10>
MIRR E 13./>
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MI00S I <G.JL.
MI00 is "etter than I00 "ecause
<. MI00 correctly assumes reinvestment at pro$ects cost of capital.
9. MI00 avoids the pro"lem of multiple I00s.
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E. &RO2I#ABI.I#/ I(!E, (&I
%he profita-ilit6 inde1' or 1I' method compares the present value of future cash inflo!s !ith
the initial investment on a relative "asis. %herefore' the 1I is the ratio of the present value of
cash flo!s (138F) to the initial investment of the pro$ect.
investment Initial
PVCF
PI =
In this method' a pro$ect !ith a 1I greater than < is accepted' "ut a pro$ect is re$ected
!hen its 1I is less than <. *ote that the 1I method is closely related to the *13 approach. In
fact' if the net present value of a pro$ect is positive' the 1I !ill "e greater than <. -n the other
hand' if the net present value is negative' the pro$ect !ill have a 1I of less than <. %he same
conclusion is reached' therefore' !hether the net present value or the 1I is used. In other
!ords' if the present value of cash flo!s eceeds the initial investment' there is a positive net
present value and a 1I greater than <' indicating that the pro$ect is accepta"le.
1I is also #no! as a "enefitDcash ratio.
&ro'ect .
0 1 2
4
100.00 10 30
50
&:
1
=.0=
&:
2
;=./=
&:
4
30 .11
115.!=
10>
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coast initial
flo!s cash of 13
1I =
<: . <
<::
HJ . <<;
= =
Accept pro$ect if 1I C <.
0e$ect if 1I E <.:
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2. E8%I9A.E(# A((%A. A((%I#/
Ohat do you do !hen pro$ect lives vary significantlyN An easy and intuitively appealing
approach is to compare the )e&uivalent annual annuity5 among all the pro$ects. %he
e&uivalent annuity is the level annual payment across a pro$ects specific life that has a
present value e&ual to that of another cash6flo! stream. 1ro$ects of e&ual si@e "ut different
life can "e ran#ed directly "y their e&uivalent annuity. %his approach is also #no!n as
e&uivalent annual cost' e&uivalent annual cash flo!' or simply e&uivalent annuity approach.
%he e&uivalent annual annuity is solved for "y this e&uation=
,&uivalent Annuity I 13(8ash Flo!s) D (present value factor of n6year annuity)
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I9. &RO:EC# !ECI+IO( A(A./+I+
A. MA"I($ $O;(O<$O &RO:EC# !ECI+IO(
(+uggestions -6 R. Bruner
3irtually all general managers face capital6"udgeting decisions in the course of their
careers. %he most common of these is the simple )yes5 versus )no5 choice a"out a
capital investment. %he follo!ing are some general guidelines to orient the decision
ma#er in these situations.
<. Focus on cash flo!s' not profits. -ne !ants to get as close as possi"le to the
economic reality of the pro$ect. Accounting profits contain many #inds of economic
fiction. Flo!s of cash' on the other hand' are economic facts.
9. Focus on incremen!" cash flo!s. %he point of the !hole analytical eercise is to
$udge !hether the firm !ill "e "etter off or !orse off if it underta#es the pro$ect.
%hus one !ants to focus on the changes in cash flo!s effected "y the pro$ect. %he
analysis may re&uire some careful thought= a pro$ect decision identified as a simple
goDno6go &uestion may hide a su"tle su"stitution or choice among alternatives. For
instance' a proposal to invest in an automated machine should trigger many
&uestions= Oill the machine epand capacity (and thus permit us to eploit demand
"eyond our current limits)N Oill the machine reduce costs (at the current level of
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demand) and thus permit us to operate more efficiently than "efore !e had the
machineN Oill the machine create other "enefits (e.g.' higher &uality' more
operational flei"ility)N %he #ey economic &uestion as#ed of pro$ect proposals
should "e' )2o! !ill things change (i.e.' "e "etter or !orse) if !e underta#e the
pro$ectN5
A. Account for time. %ime is money. Oe prefer to receive cash sooner rather than later.
+se *13 as the techni&ue to summari@e the &uantitative attractiveness of the
pro$ect. Tuite simply' *13 can "e interpreted as the amount "y !hich the mar#et
value of the firms e&uity !ill change as a result of underta#ing the pro$ect.
B. Account for ris#. *ot all pro$ects present the same level or ris#. -ne !ants to "e
compensated !ith a higher return for ta#ing more ris#. %he !ay to control for
variations in ris# from pro$ect to pro$ect is to use a discount rate to value a flo! of
cash that is consistent !ith the ris# of that flo!.
#)ese = precepts summari>e a great amount of economic t)eor6 t)at )as stood t)e
test of time. Organi>ations using t)ese precepts make -etter in4estment decisions t)an
organi>ations t)at do not use t)ese precepts.
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B. #HE &ROCE++ O2 &RO:EC# E9A.%A#IO(
(+uggestions -6 R. Bruner
?. Carefull6 estimate e1pected future cas) flo3s.
@. +elect a discount rate consistent 3it) t)e risk of t)ose future cas) flo3s.
A. Compute a -ase<caseB (&9.
=. Identif6 risks and uncertainties. Run a sensiti4it6 anal6sis.
Identify )#ey value drivers5.
Identify "rea#6even assumptions.
,stimate scenario values.
Bo#n$ %e r!n&e o' (!"#e.
C. Identif6 5ualitati4e issues.
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Flei"ility
Tuality
?no!6ho!
4earning
D. !ecide
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C. CA&I#A. RA#IO(I($
(+uggestions -6 R. Bruner
,ists !henever enterprises cannot' or choose not to' accept all value6creating investment
pro$ects. 1ossi"le causes=
Ban#s and investors say )*-5
Managerial conservatism
Analysis is re&uired. -ne must consider sets of pro$ects' or )"undles5' rather than
individual pro$ects. %he goal should "e to identify the value6maimi@ing "undle of
pro$ects.
%he danger is that the capital6rationing constraint heightens the influence of nonfinancial
considerations' such as the follo!ing=
8ompetition among alternative strategies
8orporate politics
Bargaining games and psychology
%he outcome could "e a su"6optimal capital "udget' or' !orse' one that destroys valueM
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Some remedies are the follo!ing=
0ela and eliminate the "udget constraint.
Manage the process rather than the outcomes.
(evelop a corporate culture committed to value creation.
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I(#RO!%C#IO(
-riental Ban# of 8ommerce India !as esta"lished in the year <JBA on <Jth Fe"ruary in 4ahore.
After partition' -riental Ban# of 8ommerce shifted its 0egistered -ffice from 4ahore to
Amritsar paying every rupee to its departing customers.
-riental Ban# of 8ommerce !as nationali@ed on <>th April in <J;:. %hen -B8 "an# had A:H
"ranches !ith 0s. 9;9.G< crores as deposits and as advance 0s. <>9.GJ.
%he *ational Institute of Ban# Management (*IBM)' rated -B8 Ban# as U8ustomer FriendlyU
Ban#.
-riental 8ommercial Ban# 4imited is licensed "y the 8entral Ban# of ?enya as a commercial
Ban# to carry out "an#ing activities under Ban#ing Act 8hapter B;; of the ?enyan la!s.
%he Ban# started its operations in the year 9::9' !ith ne! investments and Board of (irectors'
"y ta#ing over the assets and lia"ilities
of the erst!hile (elphis Ban#' from 8entral Ban# of ?enya. It is a middle si@ed Ban# and one of
the financially ro"ust Ban#s in' ?enya in terms of shareholders fund and li&uidity.
-riental 8ommercial Ban# 4td has its 2ead -ffice at Finance 2ouse' ?oinange Street6 *airo"i.
1resently the Ban# has a "ranch net!or# of four "ranches in ma$or to!ns namely
< *airo"i.
9. *a#uru.
A ,ldoret' and
B ?itale.

%he Ban# is managed "y a professional team of management !ho are a"ly supervised "y a
Board of (irectors consisting of eminent personalities of society having high level of integrity
and professional s#ills in their respective areas of operations. Oe are committed to provide
&uality "an#ing Service to our customers' ho!ever "y strictly adhering to the 0egulatory
.uidelines as applica"le !ithin ?enya and' internationally. -ur emphasis al!ays remains on
carefully follo!ing ?no! your 8ustomers and Anti Money 4aundering .uidelines.
8orporate "an#ing'1ersonal "an#ing' Industrial finance' Agricultural finance'Financing of trade'
International "an#ing
-riental Ban# 8ommerce has "een ran#ed A;th amongst top >:: companies "y %he ,conomic
%imes. -B8 has earned Jth position among top >: trusted "rands in India.
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3
-riental Ban# 8ommerce India maintains relationship !ith more than 9:: leading international
"an#s !orld!ide. -B8 India has 0upee (ra!ing Arrangements !ith <> echange companies in
+A, and < in Singapore.
MA(A$EME(# &RO2I.E
%ame -esignation
Sh.T... Prabhu C(a+)man and Mana,+n, d+)e'to)
Sh. 2 $atna4ara 2egde EFe'ut+6e D+)e'to)
Sh. S./ Sinha EFe'ut+6e D+)e'to)
5 5i7ay Sai $eddy D+)e'to)
$ S Maharishi D+)e'to)
, 8 8haitan D+)e'to)
8 B $ %aidu D+)e'to)
Sumita -a9ra D+)e'to)
Sh. S.8 %e9ley D+)e'to)
5i7ay :agirdar D+)e'to)
T 5alliappan D+)e'to)
/ 8 Sabhar9al D+)e'to)
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+CHE!%.E! COMMERCIA. BA("+ I( I(!IA (Competitors
%he commercial "an#ing structure in India consists of=
Scheduled 8ommercial Ban#s in India
+nscheduled Ban#s in India
Scheduled Ban#s in India constitute those "an#s !hich have "een included in the Second
Schedule of 0eserve Ban# of India (0BI) Act' <JAB. 0BI in turn includes only those "an#s in
this schedule !hich satisfy the criteria laid do!n vide section B9 (G) (a) of the Act.
As on A:th Rune' <JJJ' there !ere A:: scheduled "an#s in India having a total net!or# of GB'J<;
"ranches. %he scheduled commercial "an#s in India comprise of State "an# of India and its
associates (;)' nationali@ed "an#s (<J)' foreign "an#s (B>)' private sector "an#s (A9)' co6
operative "an#s and regional rural "an#s.
UScheduled "an#s in IndiaU means the State Ban# of India constituted under the State Ban# of
India Act' <J>> (9A of <J>>)' a su"sidiary "an# as defined in the State Ban# of India (Su"sidiary
Ban#s) Act' <J>J (A; of <J>J)' a corresponding ne! "an# constituted under section A of the
Ban#ing 8ompanies (Ac&uisition and %ransfer of +nderta#ings) Act' <JH: (> of <JH:)' or under
section A of the Ban#ing 8ompanies (Ac&uisition and %ransfer of +nderta#ings) Act' <J;: (B: of
<J;:)' or any other "an# "eing a "an# included in the Second Schedule to the 0eserve Ban# of
India Act' <JAB (9 of <JAB)' "ut does not include a co6operative "an#U.
U*on6scheduled "an# in IndiaU means a "an#ing company as defined in clause (c) of section > of
the Ban#ing 0egulation Act' <JBJ (<: of <JBJ)' !hich is not a scheduled "an#U.
#)e follo3ing are t)e +c)eduled Banks in India (&u-lic +ector0
State Ban# of India
State Ban# of Bi#aner and Raipur
State Ban# of 2ydera"ad
State Ban# of Indore
State Ban# of Mysore
State Ban# of Saurashtra
State Ban# of %ravancore
Andhra Ban#
Allaha"ad Ban#
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Ban# of Baroda
Ban# of India
Ban# of Maharashtra
8anara Ban#
8entral Ban# of India
8orporation Ban#
(ena Ban#
Indian -verseas Ban#
Indian Ban#
-riental Ban# of 8ommerce
1un$a" *ational Ban#
1un$a" and Sind Ban#
Syndicate Ban#
+nion Ban# of India
+nited Ban# of India
+8- Ban#
3i$aya Ban#
#)e follo3ing are t)e +c)eduled Banks in India (&ri4ate +ector0
I*. 3ysya Ban# 4td
Ais Ban# 4td
Indusind Ban# 4td
I8I8I Ban# 4td
South Indian Ban#
2(F8 Ban# 4td
8enturion Ban# 4td
Ban# of 1un$a" 4td
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I(BI Ban# 4td
Q,S BA*?
#)e follo3ing are t)e +c)eduled 2oreign Banks in India0
American ,press Ban# 4td.
A*S .ridlays Ban# 1lc.
Ban# of America *% / SA
Ban# of %o#yo 4td.
Ban&uc *ationale de 1aris
Barclays Ban# 1lc
8iti Ban# *.8.
(eutsche Ban# A...
2ong#ong and Shanghai Ban#ing 8orporation
Standard 8hartered Ban#.
%he 8hase Manhattan Ban# 4td.
(resdner Ban# A..
&RO!%C#+ A(! +ER9ICE+
Sa;ing Accounts
Ho3 to Open an AccountE
!o3nload or o"tain Account Opening 2orm from the nearest "ranch' fill it up
properly and deposit the same !ith the "ranch of your choice along !ith the
follo!ing =6
?. Furnish proof of 0esidence (In the form of a copy of 0ation 8ardD 1assportD
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(riving 4icenseD ,lectricity BillD %elephone BillD Identity 8ard issued "y any
reputed institution. -0I.I*A4S "e sho!n only at the time of scrutiny of
papers)D Business address.
@. Furnish 9 photographs of all the prospective account holder(s).
A.. Introduction a"out you from a person #no!n to the "an# prefera"ly "y an
Account 2older of the Branch' !hose account has run satisfactorily at least for
the past si months.
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=. Furnish 1A* or declaration of 2orm (o. DF D D?as the case may "e. %he
minimum "alance !ill "e=6
#6pes
In Rural ;
+emi %r-an
-ranc)es
In %r-an ; Metropolitan
-ranc)es
Oithout 8he&ue Boo# Facility 0s. <:: 0s. >::
Oith 8he&ue Boo# Facility 0s. >:: 0s. <:::
2OR +E(IOR+ CI#IZE(+ A(! &E(+IO(ER+
Oithout 8he&ue Boo# Facility 0s. 9: 0s. 9:
Oith 8he&ue Boo# Facility 0s. 9>: 0s. 9>:

Current Account G
2o9 to 1pen an Account<

!o3nload or o"tain Account Opening 2orm from the nearest "ranch' fill it up
properly and deposit the same !ith the "ranch of your choice along !ith the
follo!ing =6

?. Furnish proof of 0esidence (In the form of a copy of 0ation 8ardD 1assportD
(riving 4icenseD ,lectricity BillD %elephone BillD Identity 8ard issued "y any
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reputed institution. -0I.I*A4S "e sho!n only at the time of scrutiny of papers)D
Business address.

@. Furnish 9 photographs of all the prospective account holder(s).

A. Introduction a"out you from a person #no!n to the "an# prefera"ly "y an Account
2older of the Branch' !hose account has run satisfactorily at least for the past si
months.

=. Furnish underta#ingsD documentsD declarations as applica"le. 1lease refer 8urrent
Account opening form for details.

C. Furnish 1A* or declaration of 2orm (o.DF D D? as the case may "e.

D. Minimum deposits.


In Rural ;
+emi %r-an -ranc)es
In %r-an ;
Metropolitan -ranc)es
0s. >:: 0s. >:::

&ragati !eposit +c)eme

.A%(CH O2 ORIE(#A. BA(" &RA$A#I ACCO%(# +CHEMEB

(ame of t)e sc)eme
ORIE(#A. BA(" &RA$A#I
ACCO%(# +CHEME
(ate of 8ommencement <B.:;.9::H
,ligi"ility A44 *,O 8+00,*% A88-+*%S
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Minimum Amount of (eposit and
"alance to "e maintained
+r"an / Metropolitan 0s.>:::D6
0ural / Semi6ur"an 0s.<:::D6
3alidity of Scheme For a limited period only
Add on Facilities <. -ne Free A%MD (e"it 8ard for
every
Account. %he A%MD(e"it 8ard
may also "e permitted to the
partners of the firmD(irectors of
the 8ompany !ho are authori@ed
to operate the Account.
9. Free 1ersonal Accident ((eath)
insurance cover of 0s. < 4ac (<st
year)
A. Oaiver of <::L ABB 8harges
during the <st year.
B. Free internet D %ele "an#ing
>. Oaiver of (emat Account
Maintenance 8harges (for -ne
Qear)
For Accounts maintaining Average daily
8urrent Account Balance of 0s. > 4acs
or more
Additional Benefits
<. Free (raft issuance Facility
9. Free 0%.S Facility upto 0s.>
4acs.
(2o!ever' mandatory 0BI
charges plus applica"le service
ta shall "e recovered.
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+c)eme Credit +c)emes < Flei"le 2ousing 4oan' 8ar Finance' 1ersonal 4oan' 8redit 8ards
+ocial Banking < Mahila +dyam *idhi Scheme' ?rishi 8ard' -B8 Farmers Oelfare %rust
Corporate Banking < .old 8ard scheme for eporters' ,PIM finance
Business +ector < -B8 ?arigar credit card' -B8 ?ushal +dhami' -B8 1ragati +dhami' -B8
3i#as +dhami
2le1i 2i1ed !eposit +c)eme0<
Oe are pleased to inform that Flei (eposit Scheme for the "enefit of our depositor customers
has "een approved "y the Board on <;th -cto"er 9::G. %his scheme shall come into operation
!.e.f. <st *ovem"er 9::G. %he features of the scheme are as under=
&RO!%C# H BE(E2I#0
%hrough reverse s!eep facility' the amount lying in Flei Fied (eposit shall "e availa"le to the
depositor !henever there is a re&uirement of funds in his D her D their operative account i.e.
savings D current account. As such' !henever the depositor issues a che&ue or uses A%M card and
the availa"le "alance in hisDher connected SavingsD8urrent Account is not sufficient' 0everse
S!eep !ill automatically !ithdra! the re&uired amount from Flei Fied (eposit account and
the remaining amount in FF( !ill continue to earn the same rate of interest' as agreed upon in
the contract. In such event' the amount from flei fied deposit shall "e transferred to his D her D
their savings D current account "y follo!ing the 4IF- (last in first out) method.
2o!ever' the funds to "e transferred as a reverse s!eep to Savings Ban#D8urrent Account !ill
also meet the re&uirement of maintaining minimum "alance.
.OA(+
Ban#s in India !ith the !ay of development have "ecome easy to apply in loan mar#et. %he
follo!ing loans are given "y almost all the "an#s in the country=
1ersonal 4oan
Ca) Loan or Auto 4oan
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4oan against Shares
2ome 4oan
,ducation 4oan or Student 4oan
In 1ersonal 4oan' one can get a sanctioned loan amount "et!een 0s 9>'::: to <:' ::':::
depending upon the profile of person applying for the loan. SBI' I8I8I' 2(F8' 2SB8 are some
of the leading "an#s !hich deals in 1ersonal 4oan.
Almost all the "an#s have $umped into the mar#et of car loan !hich is also sometimes termed as
auto loan. It is one of the fast moving 2nan'+al 0)odu'ts of "an#s. 8ar loan D auto loan are
sanctioned to the etent of ;>L upon the e6sho!room price of the car !ith some simple paper
!or#s and a small amount of processing fee.
4oan against shares is very easy to get "ecause li&uid guarantee is involved in it.
2ome loan is the latest cra@e in the "an#ing sector !ith the development of the infrastructure.
*o! people are moving to to!nship outside the city. More num"er of to!nships is coming up to
meet the demand of Vhouse for allV. %he 0BI has also li"erali@ed the +nte)est )ates of home loan
in order to match the repayment capa"ility of even middle class people. Almost all "an#s are
dealing in home loan. Again SBI' I8I8I' 2(F8' 2SB8 are leading.
%he edu'at+onal loan' rather to "e termed as student loan' is a good "an#ing product for the
mass. Students !ith certain academic "rilliance' studying at recogni@ed collegesDuniversities in
India and a"road are generally given education loan D student loan so as to meet the epenses on
tuition feeD maintenance costD"oo#s and other e&uipment.

MO(E/ #RA(+2ER
Beside lending and depositing money' "an#s also carry money from one corner of the glo"e to
another. %his act of "an#s is #no!n as transfer of money. %his activity is termed as remittance
"usiness. Ban#s generally issue (emand (rafts' Ban#erVs 8he&ues' Money -rders or other such
instruments for transferring the money. %his is a type of %elegraphic %ransfer or %ele 8ash
-rders.
It has "een only a couple of years that "an#s have $umped into the money transfer "usinesses in
India. %he international money transfer mar#et gre! J.AL from 9::A to 9::B i.e. from +SF9<A
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"n. to +SF9AA "n. in 9::B. ,conomists say that the mar#et of money transfer !ill further gro! at
a cumulative <9.<L average gro!th rate through 9::J.
FUTURE OF BANIN! IN IN"IA
A healthy "an#ing system is essential for any economy striving to achieve good gro!th and yet
remain sta"le in an increasingly glo"al "usiness environment. %he Indian "an#ing system has
!itnessed a series of reforms in the past' li#e deregulation of interest rates' dilution of
government sta#e in 1SBs' and increased participation of private sector "an#s. It has also
undergone rapid changes' reflecting a num"er of underlying developments. %his trend has
created ne! competitive threats as !ell as ne! opportunities. %his paper aims to foresee ma$or
future "an#ing trends' "ased on these past and current movements in the mar#et.
.iven the competitive mar#et' "an#ing !ill (and to a great etent already has) "ecome a process
of choice and convenience. %he future of "an#ing !ould "e in terms of integration. %his is
already "ecoming a reality !ith ne!6age "an#s such as Q,S Ban#' and others too adopting a
single61I*. .eography !ill no longer "e an inhi"itor. %echnology !ill prove to "e the
differentiator in the short6term "ut the dynamic environment !ill soon lead to its saturation and
!hat !ill ultimately "e the #ey to success !ill "e a "etter relationship management.
O9ER9IE7
If one !ere to say that the future of "an#ing in India is "right' it !ould "e a gross
understatement. Oith the gro!ing competition and convergence of services' the customers (you
and I) stand only to "enefit more to say the least. At the same time' emergence of a multitude of
comple financial instruments is foreseen in the near future (the trend is visi"le in the current
scenario too) !hich is "ound to confuse the customer more than ever unless she spends hours
(may"e days) to understand the same. 2ence' I see a gro!ing trend to!ards the importance of
relationship managers. %he success (or failure) of any "an# !ould depend not only on tapping
the untapped customer "ase (from other departments of the same "an#' customers of related
similar institutions or those of the competitors) "ut also on the effectiveness in retaining the
eisting "ase.
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India has !itness to a sea change in the !ay "an#ing is done in the past more than t!o decades.
Since <JJ<' the 0eserve Ban# of India (0BI) too# steps to reform the Indian "an#ing system at a
measured pace so that gro!th could "e achieved !ithout eposure to any macro6environment
and systemic ris#s. Some of these initiatives !ere deregulation of interest rates' dilution of the
government sta#e in pu"lic sector "an#s (1SBs)' guidelines "eing issued for ris# management'
asset classification' and provisioning. %echnology has made tremendous impact in "an#ing.
An)*%ere +!n,in& and An)ime +!n,in& have "ecome a reality. %he financial sector no!
operates in a more competitive environment than "efore and intermediates relatively large
volume of international financial flo!s. In the !a#e of greater financial deregulation and glo"al
financial integration' the "iggest challenge "efore the regulators is of avoiding insta"ility in the
financial system.
RI+" MA(A$EME(#
%he future of "an#ing !ill undou"tedly rest on ris# management dynamics. -nly those "an#s
that have efficient ris# management system !ill survive in the mar#et in the long run. %he
effective management of credit ris# is a critical component of comprehensive ris# management
essential for long6term success of a "an#ing institution.
Although capital serves the purpose of meeting unepected losses' capital is not a su"stitute for
inade&uate decontrol or ris# management systems. 8oming years !ill !itness "an#s striving to
create sound internal control or ris# management processes.
Oith the focus on regulation and ris# management in the Basel II frame!or# gaining
prominence' the post6Basel II era !ill "elong to the "an#s that manage their ris#s effectively. %he
"an#s !ith proper ris# management systems !ould not only gain competitive advantage "y !ay
of lo!er regulatory capital charge' "ut !ould also add value to the shareholders and other
sta#eholders "y properly pricing their services' ade&uate provisioning and maintaining a ro"ust
financial structure.
T%e '##re +e"on&- o +i&&er +!n,- !"one. !- *e"" !- o %o-e *%ic% %!(e minimi/e$ %eir ri-,-
con-i$er!+").
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ACHIE9EME(#+
-riental "an# of commerce announced its T<FQ9:<: results on 9J Ruly 9::J'
delivering G9L y6o6y gro!th in net profits to 0s;A9 crore (0s><9cr)' su"stantially
ahead of epectations on account of large treasury gains' apart from healthy operating
performance.
Ohile the "an#s deposit gro!th !as reasona"ly ro"ust at B.BL se&uentially and
9G.>L y6o6y' unli#e the peers its gro!th in advances also remained strong at A;L y6
o6y.
In spite of "eing at the forefront of 140 cuts' the "an# posted a healthy gro!th in *et
Interest Income (*II) of 9JL y6o6y.
-ther Income surged <<AL y6o6y' driven "y strong treasury gains of 0sA>> crore
during the &uarter in line !ith industry trends' even as Fee income !as also ro"ust at
B>L y6o6y' on the "ac# of strong "alance sheet gro!th.
-perating epenses !ere higher than epected on account of 0s<>: crore of
provisions for imminent !age hi#es.
.ross and *et *1A ratios remained sta"le se&uentially at <.;L and :.9L' !ith the
"an# not adopting the guidelines of treating floating provisions as part of tier 9 capital
instead of ad$usting against *1As on epress permission from the 0BI.
A7AR!+ A(! !I+#I(C#IO(+
0an#ed among top >: companies "y the leading financial daily' ,conomic %imes.
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0an#ed as A9Ard "iggest "an# in the !orld "y Ban#ers Almanac (Ranuary 9::G)' 4ondon.
,arned Jth place among IndiaVs Most %rusted top >: service "rands in ,conomic %imes6
A.8 *ielson Survey.
Included in the top <::: "an#s in the !orld according to %he Ban#er' 4ondon.
.olden 1eacoc# A!ard for ,cellence in 8orporate .overnance 6 9::> "y Institute of
(irectors.
FI88IVs 0ural (evelopment A!ard for ,cellence in 0ural (evelopment W 9::>
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COM&A(/I+ MI++IO( A(! 9I+IO(
Vision & Mission Statement
Our 9ision
%o "e a sound all India' customer centric' efficient retail "an# !ith contemporary si@e'
technology and human capital7 endeavouring to enrich lives across all sections of
society7 and committed to upholding the highest standards of corporate governance.
Our Mission
%o provide the finest "an#ing services "y upgrading human capital and infusing
advanced technology' there"y achieving total customer satisfaction7 and "eing
rec#oned as the )Best Ban#5 in the Industry on all efficiency parameters.
%o enhance shareholders !ealth "y ensuring sound gro!th of "usiness and
ma#e valua"le contri"utions to national economic gro!th.
9A.%E+ A(! E#HIC+
Bonding and Integrity
,thical conduct
1eriodic disclosure
8onfidentiality and fair dealing
8ompliance !ith rules and regulations
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+#A#EME(# O2 #HE &ROB.EM
%his Study !ill help us to understand the consumers satisfaction a"out "an#ing services and
products. %his study !ill help "an#s to understand' ho! a consumer selects' organi@es and
interprets the Tuality of service and product offered "y "an#s.
%he mar#et is more a!are and realistic a"out investment and returns from financial products. In
this "ac#ground this study tries to analy@e the customer satisfaction to!ards "an#ing services in
general and O)+ental #an* o" Comme)'e in particular.

(EE! 2OR #HE +#%!/
%he deeper the company understands of consumers needs and satisfaction' the earlier the
product or service is introduced ahead of competition' the greater the epected
contri"ution margin. 2ence the study is very important.
%his study !ill help companies to customi@e the service and product' according to the
consumers need.
%his study !ill also help the companies to understand the eperience and epectations of
the eisting customers.
+CO&E O2 #HE +#%!/
%his study is limited to the consumers !ith in *e! (elhi city. %he study !ill "e a"le to
reveal the preferences' needs' satisfaction of the customers regarding the "an#ing services' It
also help "an#s to #no! !hether the eisting products or services the are offering are really
satisfying the customers needs.
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OB:EC#I9E O2 #HE +#%!/
%o have an insight into the attitudes and "ehaviors of customers.
%o find out the differences among perceived service and epected service.
%o produce an eecutive service report to upgrade service characteristics.
%o understand consumers preferences.
%o access the degree of satisfaction of the consumers
REA+ERCH ME#HO!O.O$/
A descriptive study tries to discover ans!ers to the &uestions !ho' !hat' !hen' !here' and'
sometimes' ho!. %he researcher attempts to descri"e or define a su"$ect' often "y creating a
profile of a group of pro"lems' people' or events.
Such studies may involve the collection of data and the creation of a distri"ution of the num"er
of times the researcher o"serves a single event or characteristic (the research varia"le)' or they
may involve relating the interaction of t!o or more varia"les. -rgani@ations that maintain
data"ases of their employees' customers' and suppliers already have significant data to conduct
descriptive studies using internal information. Qet many firms that have such data files do not
mine them regularly for the decision6ma#ing insight they might provide.%his descriptive study is
popular in "usiness research "ecause of its versatility across disciplines. In for6profit' not6for6
profit and government organi@ations' descriptive investigations have a "road appeal to the
administrator and policy analyst for planning' monitoring' and evaluating. In this contet' ho!
&uestions address issues such as &uantity' cost' efficiency' effectiveness' and ade&uacy.
(escriptive studies may or may not have the potential for dra!ing po!erful inferences. A
descriptive study' ho!ever' does not eplain !hy an event has occurred or !hy the varia"les
interact the !ay they do.
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+AM&.E +IZE
Sample si@e denotes the num"er of elements selected for the study. For the present study' <::
respondents !ere selected at random. All the <:: respondents !ere the customers of different
"ranches of O)+ental #an* o" Comme)'e.
+AM&.I($ ME#HO!
A sample is a representative part of the population. In sampling techni&ue' information is
collected only from a representative part of the universe and the conclusions are dra!n on that
"asis for the entire universe.
A convenience sampling techni&ue !as used to collect data from the respondents.
METHOD OF DATA COLLECTION
%o #no! the response' the researcher used &uestionnaire method. It has "een designed as a
primary research instrument. Tuestionnaires !ere distri"uted to respondents and they !ere
as#ed to ans!er the &uestions given in the &uestionnaire.
%he &uestionnaires !ere used as an instrumentation techni&ue' "ecause it is an important method
of data collection. %he success of the &uestionnaire method in collecting the information
depends largely on proper drafting. So in the present study &uestions !ere arranged and
interconnected logically. %he structured &uestionnaire !ill reduce "oth intervie!ers and
interpreters "ias.
Further' coding and analysis !as done for each &uestions response to reach into findings'
suggestions and finally to the conclusion a"out the topic.
#/&E+ O2 !A#A
,very decision poses uni&ue needs for information' and relevant strategies can "e developed
"ased on the information gathered through research. 0esearch is the systematic o"$ective and
ehaustive search for and study of facts relevant to the pro"lem
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0esearch design means the frame!or# of study that leads to the collection and analysis of data. It
is a conceptual structure !ith in !hich research is conducted. It facilitates smooth sailing of
various research operations to ma#e the research as effective as possi"le.
&RIMAR/ !A#A
1rimary data are those collected "y the investigator himself for the first time and thus they are
original in character' they are collected for a particular purpose.
A !ell6structured &uestionnaire !as personally administrated to the selected sample to collect the
primary data.
.IMI#A#IO(+ O2 #HE +#%!/
Although the study !as carried out !ith etreme enthusiasm and careful planning there are
several limitations' !hich handicapped the research vi@'
?. #ime Constraints0
%he time stipulated for the pro$ect to "e completed is less and thus there are chances that some
information might have "een left out' ho!ever due care is ta#en to include all the relevant
information needed.
@. +ample si>e0
(ue to time constraints the sample si@e !as relatively small and !ould definitely have "een more
representative if I had collected information from more respondents.
A. Accurac60
It is difficult to #no! if all the respondents gave accurate information7 some respondents tend to
give misleading information.
=. It !as difficult to find respondents as they !ere "usy in their schedule' and collection of data
!as very difficult. %herefore' the study had to "e carried out "ased on the availa"ility of
respondents.
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#AB.E0< ?
&ERCE(#A$E O2 &EO&.E HA9I($ BA(" ACCO%(#
$RA&H
.raphical representation of the people having "an# account
Anal6sis0 < From the a"ove ta"le and graph it can "e seen that only HL of the people having
no "an# account !hile the other JAL have theirs in different "an#s. %his data is presented in
"oth the ta"le and graphical presentation.
Interpretation0 So !e can conclude most of the people have accounts in various "an#s for
having different reasons li#e ' to have safety of money' to transact easily !ith others etc.
Bank Account &ercentage
Qes JAL
*o HL
#otal ?FFJ
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#AB.E<@
#ransaction of different -anks in t)e market

$rap)
Anal6sis0 < From the former ta"le and graphs !e can see people have accounts li#e in SBI
99L ' in -B8 9BL'in 1*B9:L' in APIS <<L'inI8I8I <AL and in other "an#s there are only
<:L accounts among all the respondents.
#an*s


0e)'enta,e
S#I

22>
O#C

2;>
&N#

20>
AGIS

11>
ICICI

14>
Ot(e)

10>
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Interpretation0 It is concluded here that -B8 have its popularity of having alarge no. of
accounts in the studied area for its "est service in all sectors.
#AB.E 0 A
+HARE O2 !I22ERE(# #/&E+ O2 ACCO%(#+
+..
(o.
(A#%RE O2
ACCO%(#+
(%MBER O2
RE+&O(!E(
#+
&ERCE(#A$
E O2
RE+&O(!E(
#+
<. Saving AD8s H; H;L
9. 8urrent AD8s J JL
A. Fied (eposits B BL
B. 4oans A AL
>. -thers G GL
%otal <:: <::L
Anal6sis0 A"ove ta"le sho!s that H;L respondents have Saving AD8s' and JL have 8urrent
AD8s and rest of the respondents have <AL share of other AD8s in total (!hich includes fied
deposits' loans' and other products)
Interpretation0 %his means most of the respondents are having Saving AD8s !hich means the
"an# deposits are enriching as Saving AD8s share is most.
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#AB.E 0=
#AB.E +HO7I($ MO#I9E BEHI(! #HE +E.EC#I($ OBC
+..(O A##RIB%#E +CORE RA("
<. Brand name >G <
9. 8ustomer service A: 9
A. Interest <9 A
B. -thers 9 B
Anal6sis0 %his ta"le sho! the strengths and !ea#nesses of the "rand' and !hat are the important
criteria or factors on !hich decision6ma#ing is done. From this ta"le !e can infer that consumers
give more importance for Brand name' secondly they prefer satisfaction' and then returns on
investment.
Interpretation0 %his purely sho!s that people are no! loo#ing for!ard for "etter customer
service in addition to the "rand name in !hich they are investing and the returns they are getting.
#AB.E< C
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#HE C%+#OMER+ +A#I+2AC#IO( 7I#H I(#ERE+# RA#E O2 OBC

Classification Based
on le4el of customer
satisfaction 3it) t)e
interest pro4ided -6 OBC
Anal6sis0 6 %he customers are satisfied largely on the interest rate of -B8 compare to any
other "an#s i.e. ;9L !hich is ela"orated in the a"ove ta"le and graphs.
Interpretation0 so !e can concluded that the customers are satisfied !ith the interest rate
of -B8.

Satisfied 1ercentage
Qes ;9
*o <;
#otal ?FF
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#AB.E< D
HO7 #HE C%+#OMER+ +A#I+2IE! 7I#H I(#ERE+# RA#E+ O2 BA("+
+. (O. (AME O2
BA("+
(O. O2
RE+&O(!E(#+
&ERCE(#A$E O2
RE+&O(!E(#+
< SBI 9G 9GL
9 1*B <> <>L
A -B8 AG AGL
B I8I8I J JL
> -%2,0S <B <BL
%-%A4 <:: <::L
$RA&H
Classification Based on le4el of customer satisfaction 3it) t)e interest rate of -anks.

Anal6sis0 %he a"ove ta"le sho!s that AGL of the respondents prefer -B8 firstly. %hereafter
they prefer other "an#s li#e SBI'1*B etc. 4i#e!ise SBI69GL' 1*B6<>L' I8I8I6JL and other
"an#s <BL.
Interpretation0 From these all it can "e concluded that a ma$or part of the customers are
satisfied !ith the interest rate of -B8 .
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#AB.E0K
CO(+%MER+ 7I..I($(E++ #O +HI2# #HEIR A;C s #O O#HER BA("+
+.. (o. RE+&O(+E+ (%MBER O2
RE+&O(!E(#+
&ERCE(#A$E O2
RE+&O(!E(#+
<. Shift ; ;L
9. (oesnt shift J9 J9L
#O#A. ?FF ?FF J
Anal6sis0 From this ta"le it can "e noted that the ma$ority of consumers (J9L) doesnt li#e to
shift their AD8s to other "an#s.
Interpretation0 %he reason can "e increasing customer satisfaction and &uality services offered
"y the "an#.
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#AB.E0 L
+A#I+2AC#IO( O2 RE+&O(!E(#+ 7I#H +ER9ICE+ O22ERE! B/ OBC BRA(CH
+.. (o. RE+&O(+E (%MBER O2
RE+&O(!E(#+
&ERCE(#A$E O2
RE+&O(!E(#+
<. Satisfied ;J ;JL
9. *ot satisfied << <<L
#O#A. ?FF ?FF J
Anal6sis0 From the a"ove ta"le it could "e inferred that ;JL of the consumers are satisfied !ith
the service and &uality of products of their "an#. -nly <<L of consumers are not satisfied.
Interpretation0 Most of the respondents are satisfied !ith the service offered "y O)+ental #an*
o" Comme)'e. 1resently the "an# offers varieties of services and the customers are getting a
good rate of return from their deposits. 8ustomers are getting good service from the "an#.
#AB.E0M
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RA#I($+ O2 #HE +ER9ICE+ O22ERE! B/ #HE RE+&O(!E(#I+ .I2E
I(+%RA(CE COM&A(/
+.. (o. RA#I($+
(%MBER O2
RE+&O(!E(#+
&ERCE(#A$E O2
RE+&O(!E(#+
<. ,P8,44,*% :> >L
9. 3,0Q .--( :J JL
A. .--( HG HGL
B. A3,0A., :G GL
>. 1--0 :B BL
#O#A. ?FF ?FF J
Anal6sis0 From this ta"le it could "e inferred that HGL of the consumers have rated service
offered as good' JL of them have rated them as very good' and :>L of them have rated as
ecellent and average !hile only BL have rated as poor'
.Interpretation0 Service offered "y the "an# is improving day "y day. 0eturns consumers are
getting are also attractive. Ma$ority of the customers rates good' very good and ecellent "ecause
of the customer service offered "y the "an#. Ban#s are providing a good service to the customers
due to increased competition in the mar#et. %his may "e the reason for more satisfaction.
#AB.E< ?F
Ohich product of -B8 is "eneficiary to 8ustomerN
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$RA&H
Classification Based on le4el
of 4arious t6pes of account pro4ided -6 -anks.
Anal6sis0 < It is seen that more customer have savings account li#e BHL in -B8. 4i#e!ise
there are 9AL current account ' <HL fied deposit '>L loan and only ;L insurance.
Interpretation0 So it is clear that there are more savings account in -B8 as compare to other
accounts and services.
1roduct 1ercentage
Saving ADc (SA) BHL
8urrent AD8 (8A) 9AL
Fied (eposit (F() <HL
4oan AD8 (4A) :>L
Insurance (I*S) :;L
%otal <::L
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Findings
1..Most of the respondents are having Saving AD8s .
9. Most of the respondents are satisfied !ith the service offered "y Oriental Bank of Commerce .
3. Ma$ority of the customers rates good' very good and ecellent "ecause of the customer service
offered "y the "an# .
;. people are no! loo#ing for!ard for "etter customer service in addition to the "rand name in
!hich they are investing and the returns they are getting.
/. %he reason can "e increasing customer satisfaction and &uality services offered "y the "an#.
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3
CONCLUSIONS
%he pro$ect entitled )A +#%!/ #O %(!ER+#A(! #HE C%+#OMER +A#I+2AC#IO(
A# OBCB has helped me in studying satisfaction a"out services and products offered to
consumers.
Since the opening up of the "an#ing sector' private "an#s are in the fray each one trying to cover
more mar#et share than the other.
Qet' -B8 is far "ehind SBI' 1*B. -B8 must also "e alert !hat !ith 1rivate Ban#s (I8I8I'
2(F8) "reathing do!n its nec#.
I am sure the "an# !ill find my findings relevant and I sincerely hope it uses my suggestions
enlisted' !hich I hope !ill ta#e them miles ahead of competition.
In short' I !ould li#e to say that the very act of the concerned management at -B8 in giving me
the $o" of critically eamining consumer satisfaction to!ards financial products and services of
the company is a step in their continual mission of ma#ing all round improvements as a means of
progress.
I am sure the "an# has a very "right future to loo# for!ard to and !ill "e a trail"la@er in its o!n
right.
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+%$$E+#IO(+
Oith regard to "an#ing products and services' consumers respond at different rates' depending
on the consumers characteristics. 2ence I -B8 should try to "ring their ne! product and
services to the attention of potential early adopters.
(ue to the intense competition in the financial mar#et' -B8 should adopt "etter strategies
to attract more customers.
0eturn on investment company reputation and premium outflo! are most preferred
attri"utes that are epected "y the respondents. 2ence greater focus should "e given to
these attri"utes.
-B8 should adopt effective promotional strategies to increase the a!areness level among
the consumers.
-B8 should as# for their consumer feed"ac# to #no! !hether the consumers are really
satisfied or dissatisfied !ith the service and product of the "an#. If they are dissatisfied'
then the reasons for dissatisfaction should "e found out and should "e corrected in future.
%he -B8 "rand name has earned a lot of good!ill and en$oys high "rand e&uity. As there
is intense competition' -B8 should !or# hard to maintain its position and offer "etter
service and products to consumers.
%he "an# should try to increase the Brand image through performance and service then'
only the customers !ill "e satisfied.
Ma$ority of the people find "an#ing important in their life' so -B8 should employ the
strategies to convert the !ant in to need !hich !ill enrich their "usiness.
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.
Bi-liograp)6 =
Boo4s
Resea)'( Met(odolo,1 -1 C.R. KOTBARI9 2
nd
ed+t+on.
Ma)*et+n, Mana,ement -1 &BILI& KOTLER9 11
t(
ed+t+on.
1. WE#SITE
!!!.o"cindia.co.in
!!!.google.com



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3
/ustomer Feedbac4 Form
*ame of 8ustomer XXXXXXXXXXXXXXXXXXXXXXXX.....................................
AddressXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX..
AD8 *oXXXXXXXXX......AgeXXXX.SeXXXXX8ontact noXXXXXXXXXXX..
1. Do 1ou (a6e an1 -an* a''ountH
@es No
2. I" 1es9 t(an +n 8(+'( -an* 1ou (a6e done 1ou) t)ansa't+onH
S#I O#C &N# AGIS ICICI
Ot(e)s IIIIIIIIIIII
4. W(+'( t10e o" a''ount 1ou (a6eH
SA:ING AJC CARRENT AJC 7IGED DE&OSIT AJC
;. W(1 1ou '(oose O#CH
Custome) se)6+'e #)and name +nte)est ot(e)s
/. Do 1ou sat+s2ed 8+t( t(e +nte)est 0)o6+ded -1 1ou) -an*H
@es No
3. W(+'( -an* 0)o6+ded -ette) +nte)est )ateH
S#I &N# O#C ICICI Ot(e)

!. A)e 1ou +nte)ested to s+"t t(e a''ount to ot(e) -an*H
S(+"t DoesnKt s(+"t
5. A)e 1ou sat+s2ed 8+t( t(e se)6+'e 0)o6+ded -1 O#CH
Sat+s2ed Not sat+s2ed
=. Bo8 1ou )ate t(e +nsu)an'e 0)odu't o" O#CH
EF'ellent :e)1 ,ood Good A6e)a,e &oo)

10. W(+'( 0)odu't o" O#C 8ould 1ou l+*eH
S A C A L A Insu)an'e
Ot(e)