ACKNOWLEDGEMENT

During the training it is unforgettable experience for me in

Corporation Bank. I don't have adequate words to express my profound
gratitude to project report in charge. Mr. Alpesh Shah, Who gives me a
good opportunity in the Corporation Bank. Which is a very famous
bank. So I heartily thank to my training in charge, My director and all
my sirs who gives good guidance, without their guidance for me
difficult to make project report nicely.

My acknowledgement would not be complete if I don't express my

deepest sense of gratitude towards Mr. J. M. Kamath (Asst. General
Manager) and Mr. Raj Shah (Manager) and all other staff members
without whose interest my summer project would not seen in the light of
day.

Finally I thank to all my guides and my friends who helps me in

my project directly or indirectly.

Amee N. Parekh

Date :
Place : Rajkot

1
 DECLARATION

I Miss Amee N. Parekh student of M. B. A. – Sem. III here by

declare that the project work presented in these report is my contribution
and has been carried out under the supervision of Mr. Alpesh Shah of
Shree H. N. Shukla College of Management studies, Rajkot.

The objective of training undertake is to get specialized field.

Which further sharper the skill and practically in the specialization.

This repast has not been submitted to any other university.

Date :
Place : RAJKOT ________________
Signature
Amee N. Parekh

2
 PREFACE

Today's marketplace is enormously more complex and companies

need marketing vision and know how to succeed in the dynamic

environment that shrouds the corporate world today M.B.A. is one of

those professional courses which help a students to keep pace with the

changing trends in business and it's surrounding environment.

The subject "Practical Studies" particularly helps the students to

know the actual corporate world, The anxieties and stress associated

with job which cannot be understood sitting in the class room.

As students of M.B.A. We require to prepare project on any unit

of national or international repute so as to gain practical knowledge

about prevailing market conditions. For this purpose, I have chosen

"BANKING SERVICES OF CORPORATION BANK". Corporation

Bank is No. 1 Bank in nationalize bank. Utmost care has been taken to

see that the information is true and we sincerely apologize, due to

oversight.

Amee Parekh

3
 INDEX

Sr. Page No.

Particulars
No.
GENERAL INFORMATION

* General Details

* History & Development of Banking Industries

 Types of Bank
1.
 Contribution of Banking Industry to

Society

* History of Corporation Bank

* Awards and Recognition

FOREX MARKET
* Forex in Nutshell
* Traded Currencies
2.
* History
* Forex Today
* Advantages & Disadvantages
3. PRODUCT PORTFOLIO

* Export Services

* Import Services

* Remittance Services

4
* Forward Contract

PERSONAL DEPARTMENT

* Introduction

* Organizational Chart

* Recruitment, Selection and Induction

* Training and Management Development

* Promotion and Transfer Policy

* Performance Appraisal System

* Salary Administration (Pay Scall)

* Personal Records

5
6
 GENERAL DETAILS

Name : Corporation Bank

Location : "Nijanand",
Dhebar Road,
Post Box No. 556,
Rajkot - 360 002.

Phono No. : 0281 - 2233921

0281 - 2232435

Fax No. : 0281 - 2225896

Web Site : www.corpbank.com

Product : Banking Service

Managing Director :
& CEO

Joint Managing :
Director

Deputy Manager :
Director

Executive Director :

Branch Manager : J. M. Kamath

Rajkot

Area Head :

No. of Employees : 30
in Rajkot Branch

Size of Unit : Lagre Scale

Weekly Off : Sunday

Year of Establishment : 1906

7
 PERSONNEL DEPARTMENT

Introduction
1) The personnel Management is directly concerned with
direction, Co-ordination and Co-operation of human relations
and group tasks in business organization, Which there by
obtained maximum production with minimum input physically
& mentally. The activities are undertaken in such a way that
there is minimum efforts strain and stress on individual worker
and group of workers. Without sacrificing the genuine well
being of the employees.

8
 PERSONNAL DEPARTMENT

A) Organizational Chart :-
i)
Board of Director

Managing Directors

General Manager

Personal Manager

Recruitment Manpower Salary Employee

Traning & Relationship
Section Planning Section Administration Welfare
Development

ii)
Hierarchy of HR Department

Vice President (HR)

Divisional Manager

9
 No specific work is done at center level. The entire HR
Department is controlled by Head Office,maglore
According to Edwin B. Flippo Personnel Management is defined
as "The Personnel function is concerned with procurement,
development, compensation, integration and maintenance of
personnel of organization for the purpose of contributing towards the
accomplishment of the organizations major goals and objectives.
Therefore personnel management is planning, organizing, directing
and controlling of performance of these operative function."

According to E.F.L. Brech "Personnel Management is that part of

management which is primarily concerned with the human
constitution of the Organisation."

10
 RECRUITMENT, SELECTION AND INDUCTION

Recruitment

According to Edwin B. Flippo "Recruitment is the process of

searching for prospective employees and stimulation them to apply
for jobs in the organization".

Recruitment is the first step in the employment process which

aims at developing and maintaining the adequate manpower
resources. Recruitment is a positive process of employment. It
increases the ratio of applicants and number of posts vacant and thus,
Pravide an opportunity to the management to select the suitable
person.

Recruitment procedure of corporation bank is on the basis of

aptitude and merit .

11
SELECTION

In the words of Dale Yoder "Selection is the process in which

candidates for employment are divided into two dasses these who are
to be offered employment and those who are not".

Selection is the second step in the process of procurement of

people It is the process of choosing the individuals. who, possess the
necessary skill, abilities and personality to successfully fill specific
jobs in the organization. Thus, in other worlds, it is a problem of
matching a man to the job online, recruitment, it is a negative process
as it seeks to eliminate the last promising candidate and to discover
those that appear mast likely to successes.
Selection of employees is a decision making process where the
management decided certain arms and principles to adhere to
standards on the basis of which a discrimination between a qualified
and unqualified candidates can be made. A sound selection policy
will ensure the selection of a suitable candidate.

12
Selection Procedure :-

Selection procedure starts only after the applications from the

prospective employees are received by the concern. These
applications are scrutinized considering the standards set out by the
organization. The applicants are screened out at each step and those
whe are found fit for the job are selected finally. The process of
selection can understood from the selection process flow chat
furnished below :-

Corporation Bank after conducting. Aptitude test and these

candidate secured highest scare for these following selection criterion
:-

(a)Reading Application :- Application Blank to have a record of

information regarding identification such as sex, height, weight,
family background age, education, experience, extra curricular
activity etc.

(b)Employment :- Interview

(c)Checking of Reference and Work :-

(d)Medical Examination :-

(e)Final Selection and Job Placement :-

13
INDUCTION OR INDOCTRINATION

When a candidate is finally selected he is issued that appointment

letter and is asked to join the organtsation an or upto a specified date.
Induction is a follow up action of hiring and concerned with the
problem of introducing or orienting a new employee to the
organization.

"Induction is a technique by which a new employee is inducted

into the organization and is introduced to the practices, policies and
purposes of the organization." Induction is the process of welcoming
the new employee, make him feel at home and generate in him a
feeling that his performance in the organization is significant and
meaningful for the success of the organization itself.

The primary objective of induction is to releave a new employee

of anxiety, fear, shyness and nervousness because of the fact that he
is a cutter stranger to the people, work environment and organization
itself.

The induction procedure followed by corporation bank is listed as

below :-
- Get a certificate of character.
- Disciplinary records.
- Previous record.

14
TRAINING AND MANAGEMENT DEVELOPMENT

Training :-

According to Edwin B. Flippo "Training is the act of increasing

the knowledge and skill of an employee for doing a particular job."

Training is an organized and systematic procedure for acquiring

new manipulative skills, technical knowledge, problem solving
ability for the better performance on the job. Training is a process of
learning a sequence of programmed behavior. Training provides
awareness of rulls and regulations, the way of performing given tasks
effectively and prepares the employees to improve the job
performance.

Purpose of Training :-

Training is not a purposeless and aimless activity. It is purposeful

training is necessary for :-

- Maintaining Personal growth of employee.

- Improving quality of services.
- Helping an organization to fulfill it's future personnel needs.
- Increasing the efficiency of employees.

15
Methods of Training :-

Corporation Bank provides training programmed to it's employees

depending upon their ability and talent (Knowledge). The organization
adopts on the job training method and also off the job training method.
It is provided by the hend of the particular department that is by senior
officer such training programs are scheduler every month and very from
department to department off the job training programmed conduct out
off organization.

On the job training as the name suggests it's imparted on the job
and at the work place where the employee is expected to perform his
duties. It enables the worker to get training under the same working
conditions and environment. In case of off the job training it's include
seminar, lectures and experts training.

16
MANAGEMENT DEVELOPMENT :-

According to Dale Yoder, Management development defined as "a

Programmed of training and planned personal development purporting
to prepare and aid manager in their present and future jobs."

The executive development is a planned, system and continuous

process of learning as to induce behavioral change in individuals. The
organizational should provide opportunities for it's managers for the
development of their obility. Managers should be guided by themselves
and try continuously to realize and improve their weak paints.

The Management development process ensures that the enterprise

has the effective managers it needs to accomplish it's present and future
requirements. It seeks to improve the performance of existing managers
providing them relevant opportunities to grow and develop.

Management Development is a systematic process of training and

growth by which managerial personnel gain and supply skills,
knowledge attitudes and insights to manage the work in their
organizations effectively and efficiently.

17
 Promotion and Transfer Policy

Promotion :-
According to Pigors and Nigers. "A Promotion is the advancement
of an employee to a better Job-better in terms of greater responsibilities,
more prestige or status, greater skill and increase rate of pay or salary."

Promotion is a very important aspect in every organization

because almost all the employee are promoted at one time or the after.
Employees dream of early promotion and they work effectively so that
their dreams come true. A promotion is a long cherished desire for the
employees who are not promoted inspite of working for long time
within the organization and this may lead to frustration and
disenchantment with personnel management of any organization should
have a dear cut promotional policy to motivate their workers for higher
performance and contribute to the profits.

Promotional Policy :-

First, of all Every organization determines it's promotion policy of

the employees. While deciding the promotion policy of the firm, it
should be necessary to strike a happy balance between the internal
source of personnel promotion and external source through recruitment.
Therefore, the merit and the ability of the personnel as well as the
Length of the service should be considered in promoting the personnel

18
 The company's promotion policy takes into account the merit,
length of service, educational qualification training course attended,
previous work history and experience, etc. Normally, promotion are
made an the basis of the ability, hard work, co-operation, merit and
many informal influences exerted by the workers an the managers, etc.
Those who are layal, social and capable are being promoted to higher
position.

In Corporation Bank, basically when there is any vacancy in the

organization workers, employed at lower levels, if found talented and
skillful, they are promoted to higher levels.

This Bank gives promotion on the following basis :-

- Punctuality
- Attitude
- Quality of work
- Experience
- Education Qualification
- Job knowledge
- Quality of work
- Opinion of supervision
- Behavior with colleagues.

Transfer :-
According to Edwin B. Flippo, transfer is defined as "A change in
job where the new job is substantially the equal to the old inter us of
pay, status and Responsibilities."

19
 Transfer is the process Placing Employees in positions where they
are likely to be more effective or where they are likely to get more job
satisfaction. This transfer is a process of employees adjustment with the
work, time and place.

A transfer is a horizontal as lateral movement of an employee

from one job. selection, plant department or position to another at the
same or another place where his salary, status and responsibilities are
same.

Transfer Policy :-
Every organization should have a just and imperial transfer policy
which should be each employee. for successful transfer policies. it is
necessary to have a proper job description and job analysis. Every
organization must frame a systematic sound policy. It must be clear and
unambiguous.

Corporation Bank has inter department transfer that is the

employees are transferred from one department to another department. It
is decided by mutual consultation among the departmental heads. Even
Bank also transfer their employee to one city to another city.

20
 Performance Appraisal System

According to Edwin B. Flipp. Performance appraisal is the

"Systematic, periodic and as impartial rating of an employees excellence
in matter pertaining to his present jobs and his potentialities for a better
job."

Performance Appraisal is mainly used for 3 purposes.

i. As the basis of reward allocation such as salary increments,

promotion and other rewards etc.

ii. Performance appraisal will point out the weaknesses of employees

and will spot the areas where the development efforts are needed.
Performance appraisal is a tool for identification of deficiencies.

iii. In can be used for the selection and development programme. It

will differentiate satisfactory performers from unsatisfactory ones.
The performance appraisal will help the management to perform
functions relating to selection, development, salary, promotion,
penalties, lay-off, retrenchment.

iv. Performance appraisal provides the opportunity for formal

feedback.

=> Performance Appraisal Process :-

21
 The process of performance appraisal follows a particularly set
pattern. A man's performance is regularly and periodically appraised.

1) The process of performance appraisal begins with the

establishment of performance standards. These standards are
established after thoroughly, discussing them with the respective
officers. The performance standards should be established and
clear-cut terms.

2) The next important step is to communicate the performance

standards to the employees. Without communication, employee
would not be in a position to know that is expected of them in the
organization.

3) The third step is pertaining to the measurement of performance.

Here, the managers, is concerned with two aspect which is what to
measure, and how to measure.

4) The fourth step is the comparison of actual performance with that

of the performance standards.

5) The results of appraisal should be discussed periodically with the

supervisors, employees and management. It is here, the good
points. Weak paints, difficulties in performing the assigned tasks,
difficulties with officers, etc. are discussed and unraveled.

22
6) Finally, corrective action and various rectificational measures are
initiated to correct the negative deviations from performance
standards.

Establishing Performance Standards

Communication of Standards

Actual Performance Measurement

Comparisons of Standards with performance

Past appraisal interview

Corrective action.

Corporation Bank Evaluates the work done an the following

basis:-
- Rate of absent of employees.
- Discipline of the employees.
- Performance of employee
- Behavior of employee.

23
 Salary Administration
(Pay Scales)

Salaries are the remunerably, for the quantum of services rendered

by persons whose output is difficult to be measured such as
remuneration paid to clerical or managerial or supervisory staff. It is
paid an time basis, generally an monthly basis.

The term, salary, refers to the monthly remuneration paid to the

white collar workers clerical, administrative employees, managers.

Corporation Bank pay Salary to their employees on the basis of

organizational rules and regulation. Salary Administration handed by
human resource Department. Even Corporation Bank is nationalized
Bank so It has to follow Government salary guidelines.

24
 Personnel Records

A record is an information kept to be utilized for future references

organization has to provide information to the employees regarding the rate
of accidents, large scale absentism and wage rule occurring or Prevailing in
the organization.

Records are kept in files as important documents. They are prepared

and complied from reports and meant for long term use.

Corporation Bank keeps records of every Personnel. in the

organization separately. The personnel are kept under continuous
observation by the top management.

25
(General information)

History and development of banking industry

Banking in India originated in the first decade of 18th century with The
General Bank of India coming into existence in 1786. This was followed by
Bank of Hindustan. Both these banks are now defunct. The oldest bank in
existence in India is the State Bank of India being established as "The Bank
of Bengal" in Calcutta in June 1806. A couple of decades later, foreign banks
like Credit Lyonnais started their Calcutta operations in the 1850s. At that
point of time, Calcutta was the most active trading port, mainly due to the
trade of the British Empire, and due to which banking activity took roots
there and prospered. The first fully Indian owned bank was the Allahabad
Bank, which was established in 1865.

By the 1900s, the market expanded with the establishment of banks such as
Punjab National Bank, in 1895 in Lahore and Bank of India, in 1906, in
Mumbai - both of which were founded under private ownership. The Reserve
Bank of India formally took on the responsibility of regulating the Indian
banking sector from 1935. After India's independence in 1947, the Reserve
Bank was nationalized and given broader powers.

Liberalisation

In the early 1990s the then Narasimha Rao government embarked on a policy
of liberalisation and gave licences to a small number of private banks, which
came to be known as New Generation tech-savvy banks, which included
banks such as UTI Bank (the first of such new generation banks to be set up),
ICICI Bank and HDFC Bank. This move, along with the rapid growth in the

26
economy of India, kickstarted the banking sector in India, which has seen
rapid growth with strong contribution from all the three sectors of banks,
namely, government banks, private banks and foreign banks.

The next stage for the Indian banking has been setup with the proposed
relaxation in the norms for Foreign Direct Investment, where all Foreign Investors
in banks may be given voting rights which could exceed the present cap of 10%,at
present it has gone up to 49% with some restrictions.

The new policy shook the Banking sector in India completely. Bankers, till this
time, were used to the 4-6-4 method (Borrow at 4%; Lend at 6%;Go home at 4) of
functioning. The new wave ushered in a modern outlook and tech-savvy methods
of working for traditional banks.All this led to the retail boom in India. People not
just demanded more from their banks but also received more.

Current scenario

Currently (2007), overall, banking in India is considered as fairly mature in terms

of supply, product range and reach-even though reach in rural India still remains a
challenge for the private sector and foreign banks. Even in terms of quality of
assets and capital adequacy, Indian banks are considered to have clean, strong
and transparent balance sheets-as compared to other banks in comparable
economies in its region. The Reserve Bank of India is an autonomous body, with
minimal pressure from the government. The stated policy of the Bank on the
Indian Rupee is to manage volatility-without any stated exchange rate-and this
has mostly been true.

With the growth in the Indian economy expected to be strong for quite some time-
especially in its services sector, the demand for banking services-especially retail
banking, mortgages and investment services are expected to be strong. M&As,
takeovers, asset sales and much more action (as it is unravelling in China) will
happen on this front in India.

In March 2006, the Reserve Bank of India allowed Warburg Pincus to increase its
stake in Kotak Mahindra Bank (a private sector bank) to 10%. This is the first time
an investor has been allowed to hold more than 5% in a private sector bank since

27
the RBI announced norms in 2005 that any stake exceeding 5% in the private
sector banks would need to be vetted by them.

Currently, India has 88 scheduled commercial banks (SCBs) - 28 public sector

banks (that is with the Government of India holding a stake), 29 private banks
(these do not have government stake; they may be publicly listed and traded on
stock exchanges) and 31 foreign banks. They have a combined network of over
53,000 branches and 17,000 ATMs. According to a report by ICRA Limited, a
rating agency, the public sector banks hold over 75 percent of total assets of the
banking industry, with the private and foreign banks holding 18.2% and 6.5%
respectively.

28
29
 Types of banks
Banks' activities can be divided into retail banking, dealing directly with individuals
and small businesses; business banking, providing services to mid-market
business; corporate banking, directed at large business entities; and investment
banking, relating to activities on the financial markets. Most banks are profit-
making, private enterprises. However, some are owned by government, or are
non-profits.

Central banks are non-commercial bodies or government agencies often charged

with controlling interest rates and money supply across the whole economy. They
generally provide liquidity to the banking system and act as Lender of last resort in
event of a crisis.

Types of retail banks

• Commercial bank: the term used for a normal bank to distinguish it from
an investment bank. After the Great Depression, the U.S. Congress
required that banks only engage in banking activities, whereas investment
banks were limited to capital market activities. Since the two no longer
have to be under separate ownership, some use the term "commercial
bank" to refer to a bank or a division of a bank that mostly deals with
deposits and loans from corporations or large businesses.

• Community Banks: locally operated financial institutions that empower

employees to make local decisions to serve their customers and the
partners

• Community development banks: regulated banks that provide financial

services and credit to underserved markets or populations.

• Postal savings banks: savings banks associated with national postal

systems.

• Private banks: manage the assets of high net worth individuals.

• Offshore banks: banks located in jurisdictions with low taxation and

regulation. Many offshore banks are essentially private banks.

30
• Savings bank: in Europe, savings banks take their roots in the 19th or
sometimes even 18th century. Their original objective was to provide easily
accessible savings products to all strata of the population. In some
countries, savings banks were created on public initiative, while in others
socially committed individuals created foundations to put in place the
necessary infrastructure. Nowadays, European savings banks have kept
their focus on retail banking: payments, savings products, credits and
insurances for individuals or small and medium-sized enterprises. Apart
from this retail focus, they also differ from commercial banks by their
broadly decentralised distribution network, providing local and regional
outreach and by their socially responsible approach to business and
society.

• Building societies and Landesbanks: conduct retail banking.

• Ethical banks: banks that prioritize the transparency of all operations and
make only social-responsible investments.

Types of investment banks

• Investment banks "underwrite" (guarantee the sale of) stock and bond
issues, trade for their own accounts, make markets, and advise
corporations on capital markets activities such as mergers and acquisitions.

• Merchant banks were traditionally banks which engaged in trade financing.

The modern definition, however, refers to banks which provide capital to
firms in the form of shares rather than loans. Unlike Venture capital firms,
they tend not to invest in new companies.

Both combined

• Universal banks, more commonly known as a financial services company,

engage in several of these activities. For example, First Bank (a very large
bank) is involved in commercial and retail lending, and its subsidiaries in
tax-havens offer offshore banking services to customers in other countries.
Other large financial institutions are similarly diversified and engage in
multiple activities. In Europe and Asia, big banks are very diversified

31
 groups that, among other services, also distribute insurance, hence the
term bancassurance.

Contribution of banking industry to society

A bank raises funds by attracting deposits, borrowing money in the inter-bank
market, or issuing financial instruments in the money market or a capital market.
The bank then lends out most of these funds to borrowers.

However, it would not be prudent for a bank to lend out all of its balance sheet. It
must keep a certain proportion of its funds in reserve so that it can repay
depositors who withdraw their deposits. Bank reserves are typically kept in the
form of a deposit with a central bank. This behaviors is called fractional-reserve
banking and it is a central issue of monetary policy. Note that under Basel I (and
the new round of Basel II), banks no longer keep deposits with central banks, but
must maintain defined capital ratios.

Size of global banking industry

Worldwide assets of the largest 1,000 banks grew 15.5% in 2005 to reach a
record $60.5 trillion. This follows a 19.3% increase in the previous year. EU banks
held the largest share, 50% at the end of 2005, up from 38% a decade earlier.
The growth in Europe’s share was mostly at the expense of Japanese banks
whose share more than halved during this period from 33% to 13%. The share of
US banks also rose, from 10% to 14%. Most of the remainder was from other
Asian and European countries.

The US had by far the most banks (7,540 at end-2005) and branches (75,000) in
the world. The large number of banks in the US is an indicator of its geography
and regulatory structure, resulting in a large number of small to medium sized
institutions in its banking system. Japan had 129 banks and 12,000 branches. In
2004, Germany, France, and Italy had more than 30,000 branches each—more
than double the 15,000 branches in the UK.

32
History and Development of Corporation bank in india

Established in the
year 1906,
Corporation Bank
is an organisation
based on the
traditional Indian
values of service
to the community.
Corp Bank is
regarded as one
of the well-run banks in the comity of Public Sector Banks in the country. The
Bank has a unique history of 100 years of successful Banking and has stood the
test of time by growing steadily, offering vast, varied and versatile services with a
personal touch. Today, its good customer service, pre-eminent track record in
House Keeping, adherence to Prudential Accounting norms, consistent profitability
and adoption of modern technology for betterment of customer service have
earned the Bank a place of pride in the Banking Community. The Bank has been
richly endowed with a relatively young, dynamic and efficient manpower, which is
the key factor of the Bank’s success. Excellence in performance and uniqueness
in customer service form the central core of the Bank’s organisational culture. The
growing confidence of its clientele is well reflected in the Bank’s performance in all
critical areas of its operations all through the years.

The Bank is a Public Sector Unit with 57.17% of Share Capital held by the
Government of India. The Bank came out with its Initial Public Offer (IPO) in
October 1997. The Bank’s Net Worth stood at Rs.3,765.45 crore as on
31.03.2007.

Corporation Bank is the first Public Sector Bank to publish the results under US
GAAP. The Bank has been publishing the results under the US GAAP since 1998-
99. The net profit of the Bank and its subsidiaries under US GAAP for the year
2004-05 stood at Rs. 435.89 crore against consolidated net profit of Rs. 350.69
crore registered under Indian GAAP method

As on 31.03.07, the Bank has a highly dedicated team of 11,880 employees who
have made the encouraging performance of the Bank possible by extending
exemplary services to its customers. The Bank will continue its endeavours in the
development of human capital so as to provide unmatched services to its
clientele.

33
The Bank has better productivity levels than many of its peers in the Public
Sector. The details of the manpower position and the productivity is given below

MANPOWER POSITION

Particulars 31.03.2001 31.03.2002 31.03.2003 31.03.2004 31.03.2005 31.03.2006 31.03.2007

No. of Employees 10837 10801 10727 10734 10765 11325 11880

PRODUCTIVITY

31.03.2002 31.12.2003 31.03.2004 31.03.2005 31.03.2006 31.03.2007

Productivity (business Bank 291.63 319.40 365.56 446.87 526.89 645.43

per employee)
Industry 187 187* 287.06 347.81

Net Profit Per Employee 3.00 5.06 4.98 3.95 4.13 4.79

BRANCH NETWORK

Presently, the Bank has a network of 922 Branches, 47 Extension Counters

and 19 Currency Chests covering 24 states and 2 union terries of the country.
The Bank has 932 online interconnected ATMs spread across the country .

The Bank has its presence in 98 centres out of 100 top centres in the country. It
has a specialised Branch Network of 157 Branches, which are designed to cater
exclusively to the banking needs of different segments like Personal Segment,
Trade and Commercial Segment, Small Scale Industry, Large and Medium
Industrial Units, Non-Resident Indians, Housing Sector and Export & Import
Segment.

COMPUTERISATION IN THE BANK

In pursuit of niche banking with technology as the competitive edge, the Bank has

34
drawn up an IT Plan to provide better service to its customers. All the branches of
the Bank have been computerised and consequently, 100% of the Bank's
business is computerised now. The Bank endeavours to provide high quality
service to its customers.

BUSINESS

As on 31st March, 2007, the aggregate business of the Bank stood at Rs. 72,306
crore comprising Rs. 42,356 Crore Deposits and Rs.29,950 Crore Advances .
With its strategic business focus and innovation, the Bank is striving for better
performance in the coming years. The Bank has an ambitious plan to raise its total
business level to Rs.1,00,000 crore by March 2009.

35
Awards and Rewards of Corporation Bank India

• Best Bank Award for Excellence in Banking Technology in the financial

year 2001-2002.

• Best Award for Innovative use of Banking applications on INFINET in the

financial year 2002-03.

• Best Bank Award - Delivery Channels from the Institute for Development
and Research in Banking Technology (IDRBT) during the year 2003-2004.

• 'The Asian Banker', Singapore, rated as the Second Strongest Bank in Asia
and the Strongest in India.

• The 'Forbes Global', Hongkong, included it in the list of the Best 200
Companies worldover outside the US having turnover under a billion US $.

• Business Today - KPMG survey' rated as the Best Public Sector Bank.

• Bagged the Best Public Sector Bank Award instituted by the personal
finance magazine - Outlook Money.

TECHNOLOGY EDGE

RMDS:2000 (Reuter Monitor Dealing System) for online dealing operations

enabling the bank to make available to clients competitive exchange rates.

36
NAS (Network Access Server) - remote login facility to customers to have
direct access to computer network at International Banking Division,
Mumbai for picking up online forex rates, placing clients on an
advantageous platform especially when ratres are volatile.

SWIFT - (Society for Worldwide Interbank Financial Telecommunication)

network is presently available at International Banking Division, Mumbai. 31
designated branches are on SWIFT network so as to render speedy and
prompt transactions and services

E-mail connectivity to all the branches of the Bank enabling superior service
and a speedy reach

37
 FOREX
MARKET

38
 FOREX IN A NUTSHELL
A simple definition of foreign exchange is the exchange of the

currency of one country with that of another country in order to

complete a transaction. With the advent of international trade and the

absence of an international monetary unit, one of a nation's prime

concern is the rate at which its own local currency can be exchanged for

units of a foreign currency. This system of global trading in foreign

currency is known as the Foreign Exchange Market, or Forex. The

foreign exchange market is the largest financial market in the world.

Approximately 1.9 trillion dollars are traded daily in the foreign

exchange market, which means it makes the stock market of any

country, even that of the United States look like peanuts!

The Foreign Exchange market, also referred to as the "Forex" or

"FX" market is the largest financial market in the world, 30 times larger

than the combined volume of all U.S. equity markets.

Because currencies are traded in markets in various countries,

currencies can be traded 24 hours, six days a week. The only time when

currencies are not trading is after Japan closes for business on Friday,

there is a one day window before Europe is open for business.

Currency markets are also one of the most volatile markets. One

of the reasons for this is the sheer size of the market, and its sensitivity

39
to so many variables. Whereas a company trading on the stock market is

affected by its own news and the health of the economy where it does

business, there are many more variables that can affect currencies.

International politics, enthusiasm for one currency that causes another to

weaken even though there's no apparent reason for it, whether, and war

– there is a virtually endless list.

Most traders buying and selling currency in the foreign exchange

market are doing so on a speculative basis. Like stock market traders,

they buy currencies they think will get stronger and sell the ones they

think will bet weaker. Most of this speculative activity is undertaken by

investment companies, banks and brokerages. The high volume of

currency trading means rates change every 4.8 seconds. Companies that

buy and sell foreign currency as a part of their normal business activities

make up a very small percentage of currency trading.

40
 THE TRADED CURRENCIES

For speculators, the bets trading opportunities are with the most

commonly traded (and therefore most liquid) currencies, called "the

Majors." Today, more than 85% of all daily transactions involve trading

of the Majors, which include the US Dollar, Japanese Yen, Euro, British

Pound, Swiss Franc, Canadian Dollar and Australian Dollar.

A Substantial portion of trading activity occurs in the spot

transactions between the dollar and the four major currencies, namely,

British Pound, Euro, Swiss France and the Japanese Yen.

41
 History of Foreign Exchange

The foreign exchange market as we know it today originated in

1973. Money has been around in one form or another since the time of

the Egyptians. The Babylonians are credited with the first use of paper

bills and receipts, but Middle Eastern moneychangers were the first

currency traders who exchanged coins from one culture to another.

During the middle ages, the need for another form of currency besides

coins emerged as the method of choice, These paper bills represented

transferable third-party payments of funds, making foreign currency

exchange trading much easier for merchants and traders and causing

these regional economies to flourish.

From these initial stages of forex during the middle Ages to WWI,

the forex markets were relatively stable and without much speculative

activity. After WWI, the forex markets became very volatile and

speculative activity increased tenfold. Speculation in the forex market

was not looked on as favorable by most institutions and the public in

general. From 1931 until 1973, the forex market went through a series

of changes. These changes greatly affected the global economies at the

time and speculation in the forex markets during these times was little, if

any.

42
 THE FOREX TODAY

The FOREX is made up of about 5000 trading institutions such as

international banks, central government banks, and commercial

companies and brokers for all types of foreign currency exchange. There

is no centralized location of FOREX – major trading centers are located

in New York, Tokyo, London, Hong Kong, Singapore, Paris, and

Frankfurt, and all trading is by telephone or over the Internet.

Businesses use the market to buy and sell products in other countries,

but most of the activity on the FOREX is from currency traders who use

it to generate profits from small movements in the market.

Even though there are many huge players in FOREX, it is

accessible to the small investor thanks to recent changes in the

regulations. Previously, there was minimum transaction size and traders

were required to meet strict financial requirements. With the advent of

Internet trading, regulations have been changed to allow large inter

banks (group of banks between one country and another) units to be

broken down into smaller units. Each unit is worth about $100,000 and

is accessible to the individual investor through 'leverage' – loans

extended for trading. Typically, units can be controlled with a leverage

43
of 100:1 meaning that US$1,000 will allow you to play with a $100,000

currency exchange.

How does it work ?

Currencies are always traded in pairs – the US dollar against the

Japanese yen, or the English pound against the euro. Every transaction

involves selling one currency and buying another, so if an investor

believes the euro will gain against the dollar, he will sell dollars and buy

euros.

The potential for profit because there is always movement

between currencies. Even small changes can result in substantial profits

because of the large amount of money involved in cash transaction. At

the same time, it can be a relatively safe market for the individual

investor. There are safeguards built in to protect both the broker and the

investor.

44
The Advantages & Disadvantages of dealing in FOREX

Traders and dealers in FOREX have quite a few advantages over

investing in the stock markets. The investment returns can be huge if

you do it the right way and the capital required for investing is also very

less. The following are the main advantages & Disadvantages of FX

trading :

ADVANTAGES

1. ZERO Commissions

When trading in Forex, you pay NO commissions and No data

exchange fees. The only cost is transaction fees (The difference between

the buying and selling price of any currency charged by the dealer)

2. 24 Hour Market Action

The Forex currency market is a 24-hour market. Also Currency

fluctuations are usually caused by changes in national economies. News

about these changes is accessible to everyone at the same time – there

can be no 'insider trading' in FOREX.

3. Leverage

Forex trading often allows borrowing leverage up to 100 times

your account value, while leverage can held build profits quickly, it can

also produce large, losses.

45
4. High Liquidity

The Forex market, with an average trading volume of over $1.3

trillion per day, is the most liquid market in the world. This means that a

trader can usually enter or exit the market at will in almost any market

condition.

Disadvantages

1. Leverage

With huge leverage available to forex traders the danger is the

positions which carry too much risk for the account size can be taken

on, leading to dealers squaring off the position of simply put, selling

your currency at a lower rate that which u bought it thus resulting in the

trader incurring huge losses. Effective money management rules must

be adhered to while dealing in forex.

2. Brokers

Retail traders must use a broker rather than dealing directly in the

interbank market. The broker will be the intermediary in all transactions

and is, effectively, making the market. They can, therefore, widen buy

and sell positions or even refuse to trader during volatile trading

conditions.

3. Spreads (difference between buy and sell prices of any currency)

46
 As retail traders have to go through brokers, they have to trade at

the prices set by the brokers which are always 3-20 points higher than

the bank rates. This means that for the trader to make a decent profit, the

currency in which he trades has to move a lot in his favor before he can

book a worthwhile amount of profit. Thus, the Forex is a very large

market but for most retail traders dealing with brokers the odds are

shifted against them.

Forex of Corporation Bank

Corporation Bank has a wide range of forex services to offer for both business
and non business needs.

47
 The Bank undertakes Collection/Negotiation/discount of Export Bills.
 The Bank offers to advise Export Letters of Credit and also add confirmation
thereof.
 The Bank arranges external commercial Borrowings
 The Bank offers all types of credit facilities to exporters and importers, including
foreign exchange denominated finance to resident entities.
 The Bank offers inward and outward foreign exchange remittance services

for travel,medical and other personal requirements

48
 PRODUCT PORTFOLIO OF

FOREX SERVICES OF

CORPORATION BANK

EXPORT SERVICES

In economics, as export is any good or commodity, shipped or otherwise

transported out of a country, province, town to another part of the world, typically
for use in trader or sale. Export products or services are provided to foreign
consumers by domestic producers. In other words export is to carry, send, or
transport a commodity abroad for trader or sale. Even under the best of
circumstances, selling in global market can be frustrating, especially when you
have no access to reliable important and resources.

Corporation Bank offers a wide range of EXPORT SERVICES designed to

assist in building on strengths, so that company can seize new business
opportunities around the world. Routing all export related transactions through
Corporation Bank could eliminate many of your exporting hassles. Corporation
Bank Customers experience fewer delays in receiving payments, require less effort
in locating collection information details, gain increased control over foreign
receivables and experience improved cash flows. Corporation Bank can structure
and customize solution for your specific requirements.

EXPORT PACKING CREDIT

49
 Packing credit is also known as Manufacturing Advance. It is pre-shipment
finance upon receipt of an export DC or purchase order. It is the working capital to
finance costs of materials, wages or goods manufactured. It structures the finance
around the actual business you do, allowing its customers to enjoy lower rate of
interest (than traditional overdraft), ensuring that all your expenses before
shipments are covered. Thus enable you to secure new business, as the availability
of finance provides the flexibility to offer more competitive terms to your trading
partners.

Corporation Bank provides pre-shipment finance in form of Export Packing

Credit (EPC) to assist your cash flow when you are manufacturing or packing your
goods for export from India. It provides EPC both in rupees as well as in foreign
currencies. Corporation Bank, your export finance requirement are carefully taken
care of around your actual trading cycle allowing you to enjoy competitive interest
rates and timely credit.

EXPORT BILLS NEGOTIATION

Export bill negotiation allows one to obtain short-term financing and receive
immediate payment upon shipment of goods, based on trader transaction
documents. We will purchase your Sight Bill of Exchange and discount your Bill of
Exchange.

Corporation Bank negotiates your export bills drawn under Letter of credit,
if the documents are found to be strictly in terms with LC conditions. Alternatively,
Corporation Bank negotiates under reserve, by cabling the LC to LC issuing bank
for authorization to negotiate despite discrepancies, and also send the documents to
the LC issuing bank for approval and payment. All these facilities come to you at
competitive rates and world class services standards.

EXPORT BILLS PURCHASING AND DISCOUNTING

When exports are not covered under Letter of Credit, against sanctioned credit
limits, Corporation Bank can pay discounted value of invoice, immediately on
shipment. The proceeds will be credited to the account if the export documents are
presented before cut off time at Corporation Bank branch.

RUPEE ADVANCE AGAINST EXPORT BILLS

If a customer expects the currency of his invoicing to appreciate further and

do not want to surrender his forex, Corporation Bank can offer him rupee advance
against his export bills up to the date of the receivables, subject to limit availability
and RBI rules.

50
 EXPORT BILL COLLECTION SERVICES

Concentrating Documentary Collection activities with Corporation Bank,

one can eliminate many of your exporting hassles. Not only will his international
banking become much more uniform, one can experience fewer delays in receiving
payments, effortlessly access collection uniform, one can experience fewer delays
in receiving payment, effortlessly access collection information details, gain
increased control over export receivables and efficient cash flow management. To
help speed up the cash flow, Corporation Bank can purchase/discount the export
receivables tied to the export bill collection subject to availability of credit limits.

FORFAITING OF EXPORT RECEIVABLES

A proven method of providing fixed rate export finance for international trade
transactions, in recent years, forfeiting has assumed an important role for exporters
who desire cash instead of deferred payments, especially from countries where
protection against credit, economic and political risks has become more difficult.

It is financing of export receivables at internationally competitive rates,

without recourse. Corporation bank can arrange for forfeiting of your export bills
drawn under LC at very competitive rates, without recourse.

BANK GUARNTEE

For loans obtained through international banking, bank guarantees and

letters of credit are at times, still requested as the basis for meeting loan
requirements.

Corporation Bank issues Bank Guarantees in foreign currency on behalf of

exporters for approved purposes as defined under FEMA, subject to availability of
credit limits or against 100% cash margin.

EXPORT LC ADVISING

Corporation bank has got correspondent banking relationships with more

than 700 leading banks across the world. Corporation Bank can also provide with
electronic LC Advising. Full copies of all LCs and its amendments will be sent
through email. This can help to mange logistics and better improve the preparation
of documents. On request, they can pre-advice LCs by telephone and fax so that
you can start arranging your shipment before you collect the LC. With our

51
expertise, we can explain complex LC terms to you and your staff. This can help to
organize documents easily and ensure they error free.

EXPORT LC CONFIRMATION SERVICES

This service assists the customer with confirmation services by adding our
confirmation to the LC. This assures the payment, subject to non-discrepant
documents. This guarantee holds even if the LC opening bank does not pay. And
when LC does not provide for confirmation, Corporation Bank can ensure the
payment (through silent confirmation) subject to certain conditions.

One can also ask buyers for Freely Negotiable LCs so that you have the
control and flexibility to select bank for managing export receivables. With
confirmation services, one can eliminate foreign bank and country risks.

IMPORT SERVICES

Import is to buy goods and services from another country. The act of
bringing of carrying in goods from an outside source for trader or sale, especially in
regards to goods from a foreign country.

Various banks offer comprehensive range of import services, Corporation

trusted banking institution that is highly respected in the world of international
finance and cross border transactions. They can customize and structure solutions
suited to specific business requirements through their experience and experience.

IMPORT LETTERS OF CREDIT

A bank's written payment undertaking, on behalf of a buyer, to pay a seller,

a given sum of money, upon presentation of documents representing the supply of
specified goods, these documents meeting the terms of the letter of credit, and
being presented within a specified time, and at a specified place.

Types of letter of credit

• Revocable letter of credit: Gives no security to the seller, and hence are very
rare.

• Irrevocable unconfirmed letter of credit: Bears payment undertaking of a

single bank, the Issuing Bank. This type of letter of credit shields against
buyer risk. It is also used, when a letter of credit is a requirement of an
exchange regime or import control regime in a country.

52
 • Irrevocable confirmed letter of credit: Bears the further payment
undertaking of another bank, usually the advising bank, called the
Confirming Bank here since it adds its confirmation to the letter of credit. In
addition to buyer risk, this type also protects against country risk. This may
also be used if the issuing bank is of unknown or doubtful standing to the
seller.

• Standby letter of credit: Under this instrument, credit is called if the buyer
defaults on the previously agreed form of payment.

• Transferable letter of credit: This is the favorite instrument of the traders

and middlemen to offer secure terms of payments to third parties such as
their suppliers (second beneficiary in the letter of credit). When the buyer
pays the letter of credit, part of the proceeds is transferred to the second
Beneficiary.

• Revolving letter of credit: Single letter of credit covering a series of similar

transactions.

• Red Clause letter of credit: Letter of credit allowing an initial advance to the
beneficiary before shipment of the goods. In the days of Telex, this clause in
the Letter of Credit was printed in red ink.

• Deed of Assignment: Banking arrangement, under a letter of credit, whereby

the Beneficiary of a letter of credit assigns part of the proceeds to a third
party, e.g. a supplier.

Corporation Bank issues Import Letters Credit on customer's behalf that

gives the advantage with suppliers at competitive rates and offer world class
services. Through corporate internet banking site, one can submit the LC
application online for faster processing. Their experts can advice in drafting the LC
terms and condition so as to protect the customer's interest.

IMPORT COLLECTION BILL SERVICES

Documentary Collection is a common and flexible method of payment for

goods purchased from suppliers abroad. Although relatively simply in theory, they
require careful and accurate attention to bills of exchange, stamping requirements,
Bills of Lading and other documents.

As an Corporation Bank customer, one can put all the worries to rest and
rest assured that import collection documents are handled efficiently and promptly.

DIRECT IMPORT BILLS

53
 FEMA allows receiving import documents directly from the overseas
supplier subject to certain conditions. One can receive Import Documents directly
from your overseas supplier while their trained and competent staff helps the
customers with various provisions to reduce your costs.

ADVANCE PAYMENT TOWARDS THE IMPORTS

If customer wants to make any advance payment to supplier overseas.

Corporations bank can advice you one various provisions in FEMA relating to
advance payments and assist in efficient and faster remittance to supplier at
competitive rates.

ARRANGING SUPPLIER'S CREDIT AND BUYER'S CREDIT FOR

FINANCING IMPORTS

To take care of working capital requirements Corporation bank offers a wide range
of offshore financing options. In many cases, their off shore financing solutions can
offer interest rate arbitrage opportunities to take benefit of lower interest rates in
overseas market. Using wide range of correspondent banking relationships, they
can arrange for financing import requirements by way of supplier's credit and
buyer's credit at very competitive rates.

BANK GUARANTEES

Corporation bank can issue Bank Guarantees in foreign currency on behalf of

importers for all approved purposes as defined under FEMA, subject to availability
of credit limits or against 100% cash margin.

REMITTANCE SERVICES

INWARD REMITTANCES SERVICES

Whenever the trading partner is from across the globe, bank can arrange to
receive and credit the remittances received to the customer's account. With
Corporation bank's vast correspondent banking relationships across the world, they
assure the most efficient and faster mechanism for crediting the proceedings of the
customer's account.

EEFC ACCOUNT SERVICES

54
 One can maintain EEFC a/c (exchange earners foreign currency a/c) in all
major currencies with Corporation bank and get various concessions on charges
(subject to prescribed minimum balances in the account). Customers can register
standing instructions with the bank for crediting a fixed percentage (within the
ceiling prescribed by RBI) of all inward remittances to EEFC a/c. to get FIRC
(foreign inward remittance certificates) delivered at the customer's door step,
standing instructions can be given to the bank for the purpose of remittance.

OUTWARD PAYMENTS

Whenever the payment is towards royalty payment or dividend payment, one can
depend on Corporation bank for accurate and timely payment to the beneficiary.
With Corporation bank's state of the art technology and swift tie ups, the payment
only a click away.

FORWARD CONTRACT

A forward contract is an agreement between two parties which obligates one party
to buy and other party to sell financial instrument, a currency, equity or a
commodity at a future date at the price now agreed.

Forward contract is a simple derivative instrument. It is used to eliminate the

risk of exchange rate movements in the future. It is facility to hedge your risk by
booking forward contract to eliminate risk of exchange rate movement in respect of
your trade transaction in USD, GBP, EURO & JBP.

 Optional delivery contract

This is a forward contract for which the settlement date is not specified. On
establishment only the final date by which settlement has to be done is agreed. The
contract has to be settled by the final date of the contract.

 Fixed delivery contract

This is forward contract with specified delivery/maturity date and delivery has to be
made on the agreed date.

The product facilitates entering into forward contract for clients who do not
have regular forward contract limits with Corporation Bank. Contracts will be
booked only in respect of those transactions which are proceseed or routed through
Corporation Bank. For e.g. If an importer offer to book a forward contract for an
ussance bill, the bill should have been lodged with Corporation Bank. Forward

55
 contract can be booked only on date of lodgment of the bill of on the subsequent
date (before due date for payment of the bill).

56
Corporation Bank Nostro
It maintains foreign currency accounts (Nostro) with reputed international banks in
15 major currencies. These are as follows:

Sl Account
Name and address of the Bank Currency
No Number
CITI BANK 111 Wall Street, 16th floor Zone 1,
1 NY 10043 NEW YORK, USA - Routing US $ 36006674
No.021000089
J P MORGAN CHASE BANK N.A Church Street
2 Station, P.O. BOX NO. 932, NEW YORK city, US $ 001-1-400603
NY-10008-0932 USA
HSBC Bank PLC(UK) International Division
3 P.B.No.181,110-114, Cannon Street London GBP 00-263000
EC4N6AA UK
STANDARD CHARTERED BANK PLC 1,
4 GBP 1708176696
Aldermerbury Square LONDON-EC 2U 7SB - UK
SOCIETE GENERALE BP-31709 75454, Paris 002-016-
5 EUR
cedex-09 France 204000
Commerze Bank AG 60261 Frankfurt Ammain 400-
6 Euro
Frankfurt, Germany 875085300

It facilitates the following deposit schemes for NRIs:

a. Schemes without repatriation facility
i. NRO deposits
b. Schemes with repatriation facility
i. NRE deposits
ii. FCNR(B) deposits
iii. RFC deposits(on return)
Type of deposits in [a] and [b]
• Current accounts [not in FCNR (B)]
• Savings Bank accounts [not in FCNR (B)]
• Fixed Deposits
• Cash Certificates

57
 • Money-Flex deposits
• Recurring deposits [not in FCNR (B)]

SWIFT

The Society for Worldwide Interbank Financial Telecommunication ("SWIFT")

operates a worldwide financial messaging network. Messages are securely and
reliably exchanged between banks and other financial institutions. SWIFT also
markets software and services to financial institutions, much of it for use on the
SWIFTNet Network.

The majority of international interbank messages use the SWIFT network. As of

April 2006 SWIFT linked almost 8000 financial institutions in 205 countries.

SWIFT is a cooperative society under Belgian law, owned by its member financial
institutions. That is, it is owned by the banks that use it. SWIFT has offices around
the world. SWIFT headquarters are located in La Hulpe, Belgium, near Brussels.

It was founded in Brussels in 1973, supported by 239 banks in 15 countries. It

started to establish common standards for financial transactions and a shared
data processing system and worldwide communications network. Fundamental
operating procedures, rules for liability etc., were established in 1975 and the first
message was sent in 1977.

There are four key areas that SWIFT services fall under within the Financial
marketplace, Securities, Treasury & Derivatives, Trade Services and Payments &
Cash Management.

Securities Treasury & Cash Management Trade Services

Derivatives
• SWIFTNet • SWIFTNet • SWIFTNet
FIX • SWIFTNet Bulk Trade
Accord Payments Services
• SWIFTNet

58
 Data • SWIFTNet • SWIFTNet Utility
Distribution Affirmations Cash
Reporting
• SWIFTNet • SWIFTNet
Funds CLS Third • SWIFTNet
Party Service Exceptions
and
Investigation
s

SWIFT also offer a secure person-to-person messaging service, SWIFTNet Mail,

which went live on 16 May 2007. SWIFT clients can configure their existing email
infrastructure to pass email messages through the highly secure and reliable
SWIFTNet network instead of the open Internet. SWIFTNet Mail is intended for
the secure transfer of sensitive business documents, such as invoices, contracts
and signatories, and is designed to replace existing telex and courier services, as
well as the transmission of security-sensitive data over the open Internet. Eight
financial institutions, including HSBC, First Rand Bank, Clearstream, DnBNOR,
NedBank, Standard Bank of South Africa and Bear Stearns, as well as SWIFT
piloted the service

SWIFTNet Network

SWIFT moved to its current IP Network infrastructure, known as SWIFTNet, in

2003, providing a total replacement of the previous X.25 infrastructure. The
process involved the development of new protocols that facilitate efficient
messaging, using existing and new message standards. The adopted technology
chosen to develop the protocols was XML, where it now provides a wrapper
around all messages legacy or contemporary. The communication protocols can
be broken down into:

InterAct FileAct Browse

• SWIFTNet InterAct • SWIFTNet FileAct

Realtime Realtime • SWIFTNet

• SWIFTNet InterAct • SWIFTNet FileAct Browse

Store and Forward Store and Forward

59
.
 The Bank issues travellers cheques, in foreign exchange and deals in foreign
currency.
 Nation-wide network of 33 designated branches handling foreign exchange
business, covering important business centres in India

Product and Services of

Corporation Bank

60
product and services

61
 Services typically offered by banks
Although the basic type of services offered by a bank depends upon the type of
bank and the country, services provided usually include:
• Taking deposits from their customers and issuing checking and savings
accounts to individuals and businesses
• Extending loans to individuals and businesses

• Cashing cheques

• Facilitating money transactions such as wire transfers and cashiers

checks
• Issuing credit cards, ATM cards, and debit cards

• Storing valuables, particularly in a safe deposit box

• Cashing and distributing bank rolls

• Consumer & commercial financial advisory services

• Pension & retirement planning

Financial transactions can be performed through many different channels

1) Corp Gold (Fixed Deposite)

Bank, with strong fundamentals and experience/expertise in

handling bullion business, is one of the few Banks that have
been permitted to launch the scheme. The key features of the
Corp Gold Deposit Scheme are
 Resident Indians can invest under the scheme
 Gold (bars, coins, jewellery, etc.) is accepted in scrap
form
 Maturity period 3 to 7 years
 Rate if interest – depends on the maturity pattern
 Facility of Nomination is available

62
 Multiple Certificates for different denominations
available
 Redemption in standard 995 fineness gold or in rupees
permissible
 Premature withdrawal after the lock-in-period is
permitted
 Rupee loans permitted against the collateral of Deposit
Certificate
 Deposit is transferable by endorsement and delivery
 No Income Tax on interest income
 No Wealth Tax on gold deposited
 No Capital Gains Tax either on transfer or maturity
 The Scheme at present is available at select branches
only and other terms and conditions apply.

2.Current Account

Current Account is primarily meant for businessmen, firms, companies, public

enterprises etc. that have numerous daily banking transactions.

In a Current Account, a customer can deposit any amount of money any number
of times. He can also withdraw any amount as many times as he wants, as long
as he has funds to his credit.

Current Accounts are meant neither for the purpose of earning interest nor for the
purpose of Savings but only for convenience of the business.

Who can open an Account

63
v
An individual who has attained majority.
v
Two or more individuals in their joint names.
v
Sole Proprietorship Concerns.
v
Partnership Concerns.
v
Hindu Undivided Family.
v
Limited Companies.
v
Clubs, Societies.
v
Trusts, Executors and Administrators.
v
Others – Govt. and semi Govt. bodies, local authorities etc.

Mode of opening an account

v
An account can be opened with a minimum deposit, as stipulated by the Bank
from time to time
v
Photograph(s) of the individual(s)
v
The prospective account holder/customer should give a declaration that he/they
are not enjoying credit facilities with any other bank or branch of the same bank.
v
The Prospective account holder(s) should fill in the Account Opening Form, sign it
and furnish the operational instructions.

Introduction

A proper introduction by a customer or a respectable person known to the bank is

essential for opening the account.

Any Branch Banking

Access your account from any CorpBank branch across the country.

Corp PowerCheq - Multi City Cheque

Your cheques are now payable at par at all branches of the Bank across India. No
more need for a Demand Draft.

Standing Instructions

The customer can give standing instructions to carry out his regular payments like

64
Insurance premia, rent, taxes etc., provided sufficient balance is maintained in the
account.

Transfer of Funds

The account holder can avail of the facility of Transfer of Funds by means of Mail
Transfer/ Telegraph Transfer/ Demand Drafts.

Nomination Facility

Nomination facility is available.

Corp Vidya - for higher education in India/Abroad

1.Eligibility

Applicant should be an Indian National and secured

admission to professional/ technical courses through
Entrance test/ Merit based selection process in India or
abroad.

2. Eligible for

Studies in India Studies Abroad

Graduation Courses Job-oriented courses

65
B.A., B.Sc., B.Com., etc. Professional /Technical
courses offered by
Post Graduation courses reputed Universities
Masters and Ph.D.
Post Graduation
Professional Courses MCA, MBA, MS etc.
Engineering, Medical, Agriculture, Courses conducted by
Law, Management, Computer CIMA, London, CPA in
studies, etc. USA, etc.
Courses like ICWA, CA, CFA, etc.
Courses conducted by IIM, IIT, IISC, Commercial Pilot
XLRI, NIFT, etc. Training both within
Nursing/Teachers Training Courses and outside India,
for a period of one year and above provided the
from recognised colleges/institutions colleges/institutions
leading to Diploma/Degree providing the training
certificate. conform to the scheme
Other Courses leading to guidelines
Diploma/Degree conducted by
Colleges/Universities approved by
UGC/Government/AICTE/AIBMS

3. Expenses Eligible for Finance

Fee payable to College/ School/ Hostel Purchase of books/

equipment/ instruments/ uniforms
Caution deposit/ Refundable deposit supported by bills.Travel
expenses/ Passage money for studies abroad Any other
expense required to complete the course - like study tours,
project work, thesis etc.

4. Quantum of Finance

Need based finance subject to repaying capacity of the

parents/ student with following ceilings

66
Studies in India - Rs 10.00 lakh
Studies abroad - Rs 20.00 lakh

5. Margin
Upto Rs.4.00 lakh Nil

Above Rs.4.00 lakh for studies in India 5%

Above Rs.4.00 lakh for studies abroad 15%

6. Security

Upto Rs.4.00 No security

lakh

Above Rs.4.00 Collateral inthe form of a satisfactory third

lakh and upto party guarantee
Rs.7.50 lakh

Above Rs.7.50 Collaeral Security of suitable value or third

lakh party guarantee along with the assignment
of future income of the student for payment
of instalments.

7. Rate of Interest with effect from 01.06.2007

Upto Rs.7.50 lakhs 11.25%

Above Rs.7.50 lakhs - Secured loans 10.25%

Above Rs.7.50 lakhs - Unsecured Loans 11.25%

67
(1% concession is available during repayment holiday period
if the interest is serviced promptly as and when debited )

8.Repayment Holiday

Course period + one year OR 6 months after getting job,

whichever is earlier.

9.Repayment

The loan to be repaid in 5 - 7 years after commencement of

repayment.

3.Corp Mobile -Vehicle Loan

Corp Mobile - The Bank's Vehicle Finance Scheme

'CorpMobile' gives you greater value, flexibility,

convenience and affordability. Perhaps you have been
postponing your needs to have a two wheeler/four
wheeler for quite a long time. The CorpMobile loan
scheme has been designed for people like you, who
would like to move up in life without paying through the
nose for it. CorpMobile offers you the easiest motor
cycle/Car loans with absolutely no hassles. Isn't it time to
get a motor cycle/car of your own?

1. Eligibility

68
Individuals [professionals, businessmen, salaried class
and others] sole proprietorship, partnership firm, HUF,
Limited Companies and others. Individuals minimum
annual gross income of Rs.1.20 lakhs for purchase of
Four Wheelers and Rs.50000/ for purchase of Two/ Three
Wheelers.

Income of spouse/ close relative could be included if they

join as co-obligant.

For others - Cash Accruals and Viability to meet

repayment obligations.

2. Purpose

For purchase of Four/ Three Wheelers / Two Wheelers for

personal or professional / business use/water transport
operators.

Loans for purchase of vehicles upto three years old from

the date of first purchase of the four wheeler vehicle only
may be considered.

3. Loan Amount

Maximum loan amount : Rs.1 lakh for Two / Three

Wheelers and Rs.75 lakhs for Four Wheelers and Water
Transport Operators

4. Margin

[i] For purchase of new vehicles Minimum 10% of the

invoice value, life tax and insurance premium - 15% for
Transport Operators.

[ii] For purchase of old vehicles : Minimum 25%.

69
5. Rate of Interest

12% p.a. with effect from 01.07.2007

6. Security

Hypothecation of the vehicle along with noting of Bank's

lien in the Registration Certificate and Insurance Policy.

7. Guarantee

Not Mandatory. However, third party guarantee or any

collateral securities may be stipulated, on case to case
basis, by the Sanctioning Authority at his/her discretion
and based on risk perception.

8. Repayment

Maximum 84 months in equated monthly instalments.

Maximum 60 months for purchase of 2/3 wheelers.

In case of second hand vehicles, maximum repayment

period will be reduced by the extent of the age of the
vehicle.

9. Service Charges
Two wheeler & 0.50% of the loan amount sanctioned
three wheeler with a minimum of Rs.500/-.
Four wheeler 1.00% of the loan amount sanctioned
with a minimum of Rs.1000/

Click here to apply online for Corp Mobile

Click Here to view the Checklist of Documents to be

submitted along with Corp Mobile Application Form

70
4.Corp Home - Housing Loan

Corp Home - Most attractive housing loan

Owning a house is a dream come true for anyone.

CorpBank's housing loans help you in realising this dream.
Through this scheme, you could build/acquire/extend/repair a
house/flat of your own. Loans up to Rs. 100 lakh available
depending upon the purpose, at interest rates as given
below. Any individual, satisfying normal borrower standards
and with sufficient repaying capacity is eligible. You can
repay net within 25 years, in convenient instalments that will
not exceed 50% of your salary/income. Get in touch with
CorpBank and make that elusive dream a reality.

71
1. Purpose
, For construction of house/flat, purchase of ready built
house /flat.
, For repairs/extension of existing house/flat.
, For take-over of housing loans from other
banks/institutions.

2Eligibility

Residents/NRIs holding Indian Passports aged 18-50 years

with adequate income to repay the loan.

3.Loan amount

Maximum loan upto Rs.100 lakh in metro/port town, Rs.50

lakh in urban centres and upto Rs.25 Lakh in semi-
urban/rural centres for purchase/construction of house/flat
and for take-over of housing loans.

Loans up to Rs.5 lakhs for repairs/renovation/extension of

existing house/flat.

The loan amount depends on the repayment capacity of the

applicant, which is normally considered at 40% of the net
income in case of salaried persons with net annual income of
upto Rs.2.00 lakhs and at 50% of net income in cases of
persons with net annual income exceeding Rs.2.00 lakhs.

4 Minimum Margin

In case of purchase / construction of house/flat the margin as

% of project cost inclusive of stamp/registration charges is as
follows :

72
Age of the House/Flat Margin
UPTO 10 YEARS 20%
> 10 UPTO 20 YEARS 20%
> 20 UPTO 30 YEARS 25%

For repairs/renovation 20% of the estimated expenditure .

5. Rate of Interest

The interest rates as follows are effective from 23.07.2007.

Upto Rs.20.00 lakhs

,
Type of upto & Above 5 years & Above 15 years &
Interest inclusive 5 upto/inclusive of 15 upto/inclusive of
years years 25 yrs

Floating 10.00% 10.25% 10.75

Fixed* 11.00% 11.50% 11.75%

Above Rs.20.00 lakhs

Type of Upto & Above 5 years & Above 15 years &
interest inclusive of upto/inclusive of upto/inclusive of
5 years 15 years 25 years

Floating 11.25% 11.25% 11.50%

73
 rate of
interest

Fixed rate 12.00% 12.25% 12.25%

of interest

Notes:

(i) Fixed Rate Corp Home Loans

Revised ROI shall be applicable with effect from 01.06.2007
only in respect of loans where first release is made on or
after 01.06.2007, irrespective of date of sanction.

(ii) The Fixed rate lof interest for upto & inclusive 15 years is
available for all category of borrowers while above 15 years
and upto/inclusive of 20 years is restricted to Salaried Class

(iii) Fixed rate of interest is subject to reset clause once in five

years and will be refixed on 01.06.2012

6.Repayment

Repayment based on the age of the house / flat is as follows:

Age of the House Maximum period
UPTO 10 YRS 25 yrs
> 10 UPTO 20 YRS 20 yrs
> 20 UPTO 30 YRS 15 yrs

* Incase of repairs/renovation of existing house / flat

repayment should be within a maximum period of 60 months.

74
Equated Monthly Instalments for every Rs.1 lakh of loan for
various repayment periods
(with effect from 01.06.2007)

Rate of Interest 5 years 10 years 15 years 20 years 25 years

8.5% 2052

9.0% 2076 1267 1014 900 839

9.25% 2088 1280 1029 916 857

9.5% 2100 1294 1044 932 874

9.75% 2112 1308 1060 949 891

10.0% 2125 1322 1075 965 909

10.25% 2137 1335 1090 982 926

10.5% 2150 1349 1105 998 944

10.75% 2162 1363 1121 1015 962

11.00 2174 1378 1137 1032 980

11.25 2187 1392 1152 1049 998

11.50 2199 1406 1168 1066 1017

11.75 2212 1420 1184 1084 1035

12.00 2225 1435 1200 1101 1053

75
 12.25 2237 1449 1216 1119 1072

Housing loans under Fixed Rate of Interest offered upto 20

years only and is restricted to Salaried Class.

The rate of interest will be re-fixed at the discretion of the

Bank on 01.06.2012

7. Service Charges
Upto Rs.5.00 lakhs 0.50% of the limit sanctioned subject to
a minimum of Rs.1000/- and maximum
of Rs.2500/-
Above Rs.5/- lakhs 0.50% of the limit sanctioned subject to
and upto Rs.15 a minimum of Rs.2500/- and maximum
lakhs of Rs.7500/-
Above Rs.15 lakhs 0.50% of the limit sanctioned subject to
a minimum of Rs.7500/- and maximum
of Rs.10000/-
Above Rs.20 lakhs 0.50% of the loan limit sanctioned
subject
to a minimum of Rs.10000/- and
maximum of Rs.20000/-.

*Prepayment penalty of 0.50% of the amount prepaid is to be

collected, if the loan is closed in case of floating rate of
interest option.

However in case of fixed rate of interest option: -

i) No penalty for Prepayment after completion of 5 years.

ii) No penalty for Prepayment for amount not exceeding 10

76
EMIs /2 Quarterly / 1 Half yearly / 1 yearly instalments.
iii) Penalty at 1% on the entire amount prepaid, if otherwise

8. Security

Equitable Mortgage of house / flat purchased out of Bank

Finance and co-obligation of the spouse of the applicant.

we send document through internet.

6. Project Finance

The proposals for project finance would be considered by the

bank on a selective basis in view of the larger outlay of funds
an longer duration of credit which may have an adverse
impact on bank's Asset-Liability Management system and
strain on its liquidity. Usually such projects would be
operationalised through consortium arrangement along with
the Term Lending Financial Institutions and other public/
private sector Banks.

The project would be appraised by the Lead Bank of the

consortium and all other banks would accept the appraisal
made by the lead bank. If required, the assistance of the
professionals in the line/ project appraisal groups of FIS/
Commercial Banks would be obtained for the appraisal.

Before extending finance for Projects, the economic feasibility

an financial viability of the project in relation to the macro

77
economic conditions prevailing at the time of
conceptualisation of the project and also the likely scenario
that may prevail during the normal life span of the project
should be established. The project should be able to
withstand reasonable levels of variation in crucial parameters
which should be established by sensitivity analysis of the
cash flows.

The means of finance for the project alongwith provisions to

meet contingencies such as cost/ time overrun should be
established. The entire source of funds for the project from
sources otherthan that by the promoters shall be fully tied-up
before sanction/ disbursement of the limits.

Wherever the project is one of unusually longer duration such

as infrastructure development, the involvement of agencies
such as Financial Institutions and ways of reducing the
blockage of bank's fund that are sourced mainly out of short
term lending institutions, take-out financing, securatisation,
Inter-Bank participation Certificates, etc. would be resorted
to.

The disbursements under project Finance would be made

strictly in tune with the sanction terms, only after ensuring the
end use of funds already disbursed by the consortium,
meeting the required margin at each stage of project
implementation and certification by the competent
consultants/ specialists as per the procedure in vogue from
time to time and as decided by the consortium.

The rate of interest on such credit facilities would be

determined based on the borrower gradation and the interest
rate policy of the bank from time to time.

The credit facilities shall be secured by tangible assets and

collaterals as may be required based on the nature of project,
quantum and duration of the credit, anticipated return on
investment and risk perception.

78
In addition to the above, Bank's usual normal lending norms
and policy guidelines in force from time to time would be
equally applicable to project finance cases also.

7. Cash Management
Bank has been always aiming to create values for its customers. Looking beyond
traditional banking, the Bank introduced an array of other products and services to
different customer segments. Cash Management Services is one such solution
offered by the Bank to the Corporate customers. Every organization has
receivables to collect from its dealers/ depots/ customers. Every revenue collected
by the organisation gets paid in one form or the other. Collection And Payment
Services (CAPS) provides customised solutions to corporates' needs in liquidity
management.

The PRODUCT RANGE under the umbrella of CAPS, provide one point solution
to corporates cash management requirements in the area of receivables and
payables management of the corporates.

79
The essence of CAPS is Speed, Accuracy, and Efficiency. Features of CAPS, -
evolved in response to corporates' needs - aim at providing significant TANGIBLE
BENEFITS to corporates
.

Collection And Payment Services are offered and managed by specialised

exclusive Special Business Units in the form of CAPS BRANCHES, Payment
Processing Centre and FCS HUB using the state of the art TECHNOLOGY

CAPS - Benefits to Corporates

CAPS ensures not just unlocking of funds in transit, it enhances liquidity in the
Corporate’s system and enables effective funds management. All these at a very
attractive cost structure reducing the burden on the corporate.

Detailed MIS along with payouts and customised MIS of corporate needs in soft
form either through Mail, floppy, CD ROM and through Internet eliminates all the
hassles of reconciliation and enables onward integration into corporates system.

Value addition such as courier pick up from clients’ desks enables operational
convenience

Collection of service charges at monthly rests as opposed to check to check

charges deduction provides the operational comfort and reconciliation ease

Unique payment products under CAPS makes payable processing very simple
with tremendous comforts in the areas of despatch of payout instruments,
tracking, paid/unpaid status, confirmation on payouts etc.

Technology edge combined with the personalised service by our dedicated

personnel placed at STRATEGIC POINTS * exclusively for client servicing with an
open mind to adapt to the changing needs of the corporates makes CAPS a
perfect fit into corporate’s requirements.

80
( * Mumbai, Delhi, Kolkata, Chennai, Bangalore, Ahmedabad, Hyderabad, Pune,
Coimbatore, Kochin, Kanpur, Jaipur, Indore, Vijayawada, Nagpur, Chandigarh,
Vishakpatnam and Guwahati)

( The Collection HUB the FCS Branch and the Payment HUB the Payment
Processing Centre are in Bangalore.)

Fast Collection Service

Fast Collection Service (FCS) is the premier product of the Bank under CAPS
range of products. FCS envisages elimination of one leg of movement of cheques
from drawer to beneficiary’s place and travel back to speed up the process. The
corporates can access the collections effected at 301 LOCATIONS (OPERATING
CENTRES) across the country covered under the arrangement within 24 to 48
hours at a location of corporate’s choice.

Corp Clear Services [ CCS ]

CCS ensures quick collection of outstation cheques. The product enables assured
credit on pre-determined day of corporate’s choice, in respect of upcountry
cheques deposited with specialised CAPS branches irrespective of the day of
realisation. The need-based product range under this segment includes

Corp Clear Services - CCS 8th Day*

Corp Express Services - CES 4th Day*
Corp Instant Services - CIS Next Day

(* for cheques drawn on locations where CorpBank has branches)

Corp Collect Service [ CCT]

Corporates apprehensive of cheque realisations may use our Corp Collect Service
that operates on “Realise and Pay” basis. The Service is extended for both within

81
and outside network locations. All the benefits of other corp clear services do
come along with Corp Collect Service.

Corp Comfort Services

Waiting unduly and without certainty as to realisation of outstation cheque would
hamper the business cycles. With an assured credit on 8th day in respect of
outstation cheques falling outside network, CorpComfort Service proves an
effective blend of CorpClear Service and CorpInstant Service.

Corp Remit Services

CorpRemit Service meets the corporates’ wholesale payment requirements such
as statutory payments, payments to vendors/suppliers, banking requirements,
inter branch transfers etc., Corporates need just to hand over the payout
instructions file along with funding cheque to CAPS branch. Further Servicing will
be taken over by the CAPS outfit. One of the salient features of CorpRemit is that
corporates get confirmation on payout effected. Remittances can also be sent
through RTGS to over 25000 bank branches across the country.

Corp Pay Services

CorpPay Service facilitates corporates’ to make retail payments very effectively.
Some of the payouts that can be very effectively and conveniently handled
includes disbursal of incentives, equity and debt servicing to the satisfaction of
investors, salary and wages payouts etc. All that corporates need to do is to
furnish the payout details in magnetic media/mail and the funding therefor. Rest is
only client satisfaction. Value added service such as despatch of payout
instrument to beneficiary is also made available. All these are available at a very
competitive price exclusively for corporates.

Payment Processing Centre

82
Continuing the initiatives in re-engineering the Cash Management Process,
Payment Processing Centre was set up to replicate the success achieved in
collections in payments too. At PPC, capabilities are built to print exceptionally
large number of Demand Drafts with advise. Value added service such as
despatch of payout instruments to beneficiaries is being undertaken.

PDC Hub

Considering the huge market available and market demand for collection of PDC
cheques, PDC Hub was setup exclusively for handling bulk PDC chques received
from Finance Companies, Banks etc towards repayments loans extended by
them.

CorpNet - an Internet banking facility

Symbolising the commitment to deliver value added services to clients using
CAPS with continuous improvements year after year, the Bank has made the use
of the state of the art technology.

CorpNet an internet banking facility is now available to all corporates using CAPS
for their cash management needs. CorpNet optimises the efficiency of corporates
cash management
.
CorpNet provides for a host of advantages to corporates using CAPS.
Convenience, information on line, data modulation, cash inflow forecast,
outstanding position of instruments sent for collection are some of these distinct
advantages coming without any extra cost. A very high level of security features
are incorporated to afford greater degree of client comfort using this technology
driven value addition. What the corporates need to do is to simply register
with any of the CAPS branches
.

Correspondent Banking Arrangement

83
Corporation Bank has developed structured products exclusively to the agency
services requirements of clients of correspondent banks under the umbrella of
Correspondent Banking Arrangements. The services offered are:

 DD Drawing Arrangement - for issue of DDs on CorpBank

network
 Collection of Cheques - for both local and outstation cheque
collections
 Sub Membership in Clearing - for facilitating participation in local
clearing
 Paycheck operations - for using the collection funds towards clients’
disbursement

SpeedCash :
The product envisages remittance of cash upto 50000/- to the beneficiaries
through all our Branches. The product is well received by exchange houses for
cross border remittances. Under the product, the remitter can remit to his relatives
a sum of Rs.50000.00 through any Exchange House (at present through UAE
Exchange and Wall Street Exchange) branches situated in Gulf and other
countries which can be paid instantly by Cash to the beneficiary. Beneficiary need
not have to have account in our branches. The product can be used by top rated
corporate houses within the country for effecting cash disbursal across country
.

Speed Remittance :
Under the arrangement, the NRIs can send remittances through exchange houses
across globe. The exchange houses send the details to our Nodal branch (PPC
Branch) at Bangalore who in turn credit the same to the beneficiaries accounts
maintained in any of our branches. In case the beneficiary account is not held in
our Bank, a pay order can be issued at the destination, which can be collected by
the beneficiary.

Payment Gateway

84
The Division, with futuristic view in mind where web trade is taking shape
gradually in India especially amongst urban population, has decided to offer
payment gateway solutions to corporate having its own trading sites on Internet.
The product envisages providing buyers having account with our Bank an
opportunity to pay for the purchases made on the net. Through this product our
corporate customer will get wider base for selling their products

ECS payments / Collections

The product envisages large volume, low value bulk collections and payments
from various accounts at select ECS locations. The same can be handled through
select specialized CAPS branches.

8. Corp-e-Cheque

Transfer of funds across locations has always been a cause of anxiety for
banking customers. It involves purchasing a Demand Draft, sending it by
registered post/courier, getting it cleared at destination location, meaning
thereby time lag and anxiety. Responding to the customers’ need to have a
better solution, Corporation Bank, India’s Hi-tech Bank in the Government
Sector, launches Corp e-Cheque, facilitating remittance of funds to pre-
approved beneficiaries across banks within 48 hours.

What is Corp e-Cheque?

Corp e-Cheque is an innovative product developed by Corporation Bank by

combining the power of CorpNet the Bank’s Internet Banking Service with
Electronic Funds Transfer (EFT) Scheme of Reserve Bank of India (RBI)

How does Corp e-Cheque work?

The customer of CorpBank will make a remittance request to the branch
where he maintains his account through an Internet Banking transaction

The customer’s account gets debited at concerned branch of CorpBank and

the remittance details are transmitted to RBI EFT system through the Service
Branch pf CorpBank at the destination center

RBI will debit CorpBank’s account and credit the beneficiary’s bank and pass
on the remittances details to the Service Branch of the beneficiary’s bank
through EFT

The Service Branch of beneficiary’s bank will send the information to the
beneficiary’s branch for crediting the amount to beneficiary’s account

85
Where Corp e-Cheque facility is available?
The facility is now available through 700 Internet Banking enabled branches
of CorpBank.

The facility is available for remittance to Seven Destination centers viz.,

Ahmedabad, Bangalore, Chennai, Delhi, Hyderabad, Kolkata and Mumbai

Who can avail Corp e-Cheque facility?

Individuals, Sole Proprietorship Concerns, Partnership firms, Companies and

Corporates having Internet Banking Account with Corporation Bank can avail
of this facility

How Corp e-Cheque is different from normal remittance?

Funds transfer can be effected across banks without visiting your branch, by
passing an instruction through Internet.

Remittance instructions can be issued from anywhere on the Globe by having

and Internet Banking account with CorpBank

Credit to the account of pre-approved beneficiaries within 48 hours,

irrespective of distance

No hassles, No waiting, No anxieties

How to use Corp e-Cheque?

Register yourself for using the facility by submitting an application (available

at all Internet Banking enabled branches of CorpBank)

You will receive a User ID and user & authorization Passwords from
CorpBank

Change your password on accessing CorpBankNet.com for the first time.

Thereafter, you can change your passwords anytime forthwith

Get the beneficiary approved by furnishing full details like Name, Beneficiary
Bank, Branch, Account Type and Account Number

Enter CorpNet and leave your remittance instructions

Get a confirmation through CorpNet on execution of the remittance

instruction

Is it not interesting???

Forget the hassles of Funds Transfer across Banks

86
9. Corp Convenience - International Debit cum ATM
Card : Corp Convenience, our International Debit Card assists you in
accessing your account at over 926 Corp Bank ATMs in addition to more
than 10 lakh VISA ATMs worldwide. Moreover you can use the Card at more
than 10 million shopping outlets worldwide displaying the VISA logo. You
are also provided a free personal accident insurance cover of Rs 1 lakh free
of cost. This facility is available to all Current Accounts held by individuals
and proprietorships (in the name of the individual)

10. Current Account

Current Account is primarily meant for businessmen, firms, companies, public

enterprises etc. that have numerous daily banking transactions.

In a Current Account, a customer can deposit any amount of money any number
of times. He can also withdraw any amount as many times as he wants, as long
as he has funds to his credit.

Current Accounts are meant neither for the purpose of earning interest nor for the
purpose of Savings but only for convenience of the business.

87
11. FixedDeposit

The high returns deposit - it is the high return term deposit

scheme and interest can be paid at regular intervals viz.
monthly, quarterly, half yearly or yearly. The deposit can be
made for periods ranging from 15 days to 10 years. The rate
of interest depends on the period of deposit. It is an ideal
deposit scheme for those who can plan for regular income.

88
12. Railway Reservation

Corp e-Rail

Corp Bank e-enables Railway Reservation to its customers

Corporation Bank, India’s premier Public Sector Bank has good news for its
customers. The Bank has e-enabled railway reservation booking bringing in a
new world of convenience.

The Bank has entered into a tie up with the Indian Railway Catering &
Tourism Corporation (IRCTC) for online booking of railway tickets. CorpNet
(Internet Banking facility) customers of the Bank holding a Corp Convenience
Card (International ATM cum Debit Card), can now book their tickets online,
over the Internet, by direct debit to their Corp Bank account. The customer
needs to Register himself with the IRCTC to transact. The customers shall
login to IRCTC website, get confirmation about availability of tickets for the
desired sector and select Corporation Bank to make the payment of ticket
fare to IRCTC. IRCTC will send the reservation ticket through courier to the
customers within three days from the date of booking.

Every registered user at the IRCTC gets an e-mail confirmation of successful

registration. Every successful transaction is also followed by a confirmation e-
mail. In addition, for every waitlisted/RAC ticket, the customer gets periodic e-
mail alerts about his/her PNR status. The number of alerts depends on the
time interval between the date of booking & the date of journey. There is
thus, a regular system of communication with the customers through e-mail
and snail mail & direct mail along with the tickets through courier.

Service Charges : A Service Charge of Rs 12/- (inclusive of service tax) will

be charged for every successful transaction.

This is yet another facility that will go a long way in increasing customer
convenience, in the same mould as other tech savvy offerings from Corp
Bank, like Corp Any Time Premium (facility to pay LIC premium through the
Bank’s ATMs), Corp Bill Pay (online payment of utility bills) etc.

COMPETITORS

89
Private Banks with large amount of Reserves and Surplus, greater efficiency,
customer oriented services, modern technology and instrument are attracting
customers more than public Banks. These banks are the main competitors of
corporation bank.

Other Co-operative Banks offering higher rates of Internet and quick disposal of
loans are also the considered as competitors of corporaion bank.

Nationalized Banks. These banks have nation wise branches network.

Therefore they offer remittance facility to business community.

But in forex department corporation bank is leder in all over the surarastra.

90
 RESEARCH
METHODOLOGY

91
 METHODOLOGY IN A NUT SHELL

FORMULATION OF RESEARCH PROBLEM

The survey was conducted to capture forex market and to find out
consumer preferences.

RESEARCH DESIGN
The Survey method is used here as personal interaction is possible.

DETERMINATION OF SOURCES OF DATA

The survey is based solely on primary data collected from actual
importers and exporters.

DETERMINING SAMPLING DESIGN & SIZE

Deliberate Sampling was used to select the sample size of
approximately 100 international traders.

ORGANISING AND CONDUCTING FIELD SURVEY

The survey was conducted at Rajkot city and upcountry stations of
Rajkot city.

PROCESSING AND ANALYSIS

The data collected was tabulated first. The tabulated data was than
interpreted and analyzed.

PREPARING THE RESEARCH REPORT

The findings and recommendations were than embodied in the project
report.

92
 FORMULATION OF RESEARCH PROBLEM

In order to avoid waste in time and money it is necessary to

define problems in specific terms. An early step in process is a situation

analysis or a survey of available data regarding the company. Through

this we can arrive at a hypothesis or presumption and a refinement of the

problem definition. A problem should never be defined too broadly nor

too narrowly. Plan may be prepared for each problem and master plan

can combine all the plans.

 Problem definition

To examine the clients in Rajkot and analyzing their banking

preferences and reasons thereof as well as to study is done

keeping in mind subject and objectives.

93
 OBJECTIVES OF RESEARCH

Each research study has its own specific purpose. Our research

has been undertaken to meet the objectives like :

• To explore the business opportunities by evaluating clients

banking preferences in forex market for cliental base in Rajkot.

• To put forward suggestions to customizes the products of

Corporation bank's forex services.

• To know the strategies and services offered by competitors.

• To enhance forex services and for quick execution of forex

transaction.

94
 SIGNIFICANCE OF RESEARCH

 TO THE BANK

The research will enable the bank to analysis the

needs and preferences of clients such as to develop

and provide customize services that meets the

requirements of clients as well as bank.

 TO THE RESERACHER

It's in depth study, analysis and evaluation would

significantly help in giving more knowledge of the

same as well as confidence in the future endeavor as

the researcher wants to pursue their career in financial

field.

95
 Research methodology

A research design can be defined as "the plan, structure and

strategy of investigation conceived so as to obtain answers to research

questions and to control variants." It is the blue print of research study.

Once it is realized that the secondary sources of data are

insufficient, the researcher need to decide upon one alternative design to

collect primary data. The three basic methods which can be used are :

1. The observational method

2. The experimental method

3. The survey method

1. The observational method :

This method involves direct observation of the physical

phenomena in gathering data and avoids talking directly, with

people thus recognizing the defects inherent in direct questioning.

This type of observation is focused on a well defined problem and

not merely a broad activity.

2. The experimental method :

This method is based on the premise that a small scale experiment

is useful to indicate what can be expected in a large scale

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 experiment. This method however involves more time and is

costly.

3. The survey method :

This method involves learning about people's knowledge, beliefs,

preferences, satisfaction and to measure these magnitudes in the

general population. It is the most widely used technique. There are

three types of surveys, namely :

• Telephonic survey

• Questionnaire

• Personal interview

The survey can be further classified as :

• Factual survey

It requires the factual information and includes questions

which can be answered in Yes / No.

• Opinion survey

It requires the personal opinion of the person interrogated he

is required to make an evaluation or appraisal and report his

judgment on particular matter.

• Interpretive survey

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Here the person interviewed is required to do more than

reporting merely a fact or an opinion and acts as an

interpreter.

The survey undertaken by me has features of all the above

stated classifications to certain extent. The survey contained

a balanced mixed of all kinds of questions in order to find

out the needed facts and information.

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 DETERMINATION OF SOURCE OF DATA

In research literature, there are two types of data : primary date

and secondary data. The researcher can gather primary data of

secondary data of both.

PRIMARY DATA

The first hand data collected for specific purpose or for a specific

research project constitutes primary data.

When the needed data do not exist or are inaccurate, incomplete or

unreliable the researcher collect primary data. Most research project

thus involve some primary data collection. Our main primary data

source consists of importers (buyer) and exporters (seller) of Rajkot city

and upcountry station of Rajkot.

The normal procedure is to interview some people individually or

in groups to get an idea of how people feel about the topics in question

or to conduct a pilot survey and than develop the formal research

instrument.

SECONDARY DATA

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 Information collected by other organization or individuals which

might be relevant to study, constitutes the secondary data.

Researcher usually start there investigation by examining

secondary data to see whether their problem can be partly or wholly

solved without collecting costly primary data. Secondary data provide

starting point for a research and offer the advantage of low cost and

ready availability.

However, it also has its limitations in fields like degree of

accuracy, reliability, outdated data and data not matching the purpose of

research study.

In our study we have primarily used "Primary Data" obtained

through survey with the help of questionnaire. The use of secondary

data was restricted to obtaining the general information only.

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 Designing the data collection forms

Researchers have a choice of two main research instruments in

collecting primary

data : Questionnaire and Mechanical devices.

MECHANICAL INSTRUMENTS

Mechanical devices are occasionally used in marketing research. a few

device that can be used are galvanometers, tachistoscope, eye cameras,

audiometer, etc.

QESTIONNAIRE

A questionnaire consists of questions presented to the respondents

for their answers. Because of its flexibility, the questionnaire is by far

the most common instrument used to collect primary data.

In preparing questionnaire, care should be taken in choosing the

questions and their form, wording and sequence. The questions included

in the questionnaire can be closed end or open end. Closed end

questions prespecify all the possible answers and are easier to tabulate

and interpret. Open end questions allow respondents to answer in their

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own words and they often reveal more as they give an insight into how

people think.

The questionnaire should have simple, direct, unbiased working

and a logical order. The lead question should attempt to create interest.

Difficult or personal questions should be asked towards the end so that

the respondents do not become defensive early.

In our study, the questionnaire contained both open-end and close-

end questions depending upon the e type of information to be gathered.

The questionnaire was designed in following manner :

• Type of the information to the collected

• Structuring the questions

• Sequencing the questions

• Pre- testing of the questionnaire

• Follow up

The survey was conducted by personally meeting the international

traders and seeking answer to the questions in the questionnaire

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 QUESTIONNAIRE FOR RESEARCH ON FOREX
SERVICES OF BANKS.

A. General information

1. Name :- _________________________________

2. Address:- _________________________________

_________________________________

Contacted person: _________________________________

Mobile No. :- _________________________________

3. Vintage of Business :- _____________________________

4. Type of industry :-

Manufacturing k Trading k Services k

5. Nature of business :-

Export k Import k Both k

6. Frequency of Export/Import in a month :-

Once k Twice k Thrice k

More than twice k Infrequent k

7. Annual turnover :- _________________________

8. Forex volume :- _________________________

9. Dealing in which of the major currency ?

$ k ∈ Y k CHF k

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 10. Countries in which you have exposure (Top 3).

a. _________________

b. _________________

c. _________________

B. BANKING INFORMATION

1. Which bank facilitates your current forex transaction ?

___________________

2. Do you use risk hedging tools ?

YES k NO k

3. If yes, what

Forward k Options k

4. Are you aware about options ?

YES k NO k

5. Which trade services you are availing ?

Services Charges Services Charges

(Rs.) (Rs.)
LC opening k_______ LC discounting k_______
Bill of collection k_______ Packing credit k_______
Inward remittance k_______ Outward remittance k_______
Bank guarantee k_______ Credit and security k_______
Swap k_______ FCNR A/c k_______
EEFC A/c k_______ Rapid forex k_______
Others please specify ________________________

6. Which bank do you prefer ?

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 Nationalized k Private k

7. Rate nationalized bank according to your preference?

(rate 1 to 10, 1 for max. and 10 for min.)

a. State bank of India k b. State bank of Saurashtra k

c. Bank of India k d. Bank of Baroda k
e. Oriental Bank of India k f. Central bank of India k
g. Corporation bank k h. Union bank of India k
i. Uco bank k j. Dena bank k
k. If other please specify _____________________

8. Rate private bank according to your preference ?

(rate 1 to 6, 1 for max. and 6 for min.)

a. ICICI bank k b. HDFC bank k

c. Standard chartered bank k d. Bank of Baroda k
e. ING vyasa bank k f. Federal k
g. UTI bank k
h. If other please specify _____________________

9. What do you think about following services of bank ?

Sr. Statements Highly Satisfied NA Not

No. Satisfied Satisfied
1. Processing fees.
2. Rate of interest
3. Time take in
transaction
completion
4. Employees
awareness
5. Reply to inquires
6. Handling of
discrepancies

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10. Are there any services which are not covered by your bank?

If so, please specify __________________________

11. Do you have any

Suggestions ____________________

Complaints ____________________

Comments ____________________

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 Sampling procedure

There are many questions that the researcher must answer when

considering a project to collect total information about certain

magnitude. Whether the research should be carried out by a populating

unit ? What should be size of the sample?

The sampling procedure is as follows :

DEFINNING THE POPULATION

IDENTIFY THE SAMPLING FRAME

SPECIFY THE SAMPLING

SPECIFY THE SAMPLING METHOD

DETERMINE THE SAMPLE SIZE

SPECIFING THE SAMPLING PLAN

SELECT THE SAMPLE

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DEFINE THE POPULATION

It is necessary to define population in terms of :

• Element

• Extent

• Time

In our study they have been defined as :

• Element - Exporters and Importers of Rajkot city.

• Extent - Rajkot and upcountry station of Rajkot city

• Time - 1 month.

IDENTIFY THE SAMPLING FRAME

Sampling frame could be a telephone directory, a list of blocks

and locations of city of any other list consisting of all sampling units.

Our list contains people who are in to the physical trade cross the

country using the forex services provided by the banks and liable to the

obligations of foreign trade. A list of international traders was also

provided from the Corporation bank and references given by these

international traders about others in the market.

SAMPLING UNIT

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 It is necessary to define target population that is to be surveyed.

The sampling unit is the unit which contains the characteristics of the

target population. Sam ling unit must be specified so that the data is

collected from the right people and information collected is accurate.

Sampling unit of our study were the customers of Corporation

Banks and other banks within Rajkot using forex services.

SAMPLING METHOD

For accurate results it is very essential that the different

constituents of the population are adequately represented in the sample.

It is not possible to cover the entire population and thus, certain method

of sampling is needed to be decided upon selecting the sampling.

There are many sampling approaches used in marketing research

various sampling method are divided in two categories as stated under :

• Probability sampling

• Non- Probability Sampling

DELIBARATE SAMPLING

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 Deliberate sampling is also known as purposive or non probability

sampling. This sampling method involves selection of particular units of

universe for constituting a sample which represents the universe.

In our case the whole population is our sample, as there are very

limited international traders within Rajkot, so in order to get the perfect

feed back we need to deliberately select the unit from the population

that are international trader.

DETERMINATE THE SAMPLE SIZE

The sample size should be determined keeping in mind the

objective of the research study, the size of population and the diversity

in population. The sample size should neither be too small nor too large

but it is necessary to take a moderate number to ensure statistical

reliability.

The sample size of our study was 100 units.

SAMPLING PLAN

The sampling plan indicate how the decision made so far are to be

implemented. It defines the elements to be surveyed, contains

instructions for the researcher as to how he should take a sample, etc.

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There are some pertinent issues in a sampling survey to which a

sampling plan provides answers.

All the samples were studied; they were edited, coded and

tabulated. The data was evaluated and interpreted in a graphical form

and percentages are used for data presentation.

SELECTION OF SAMPLE

This is the final step of the sampling process. A good deal of

office and field work is involved in the actual selection of the sample

elements. As the sampling method used by us was deliberate sampling

which falls under non-probability sampling the efforts involved and

field work were maximum, as it was very tough to locate the units of

population which are physically into international trade.

SCOPE OF STUDY

Research in general has a very wide scope. Scope refers to the

various avenues which are covered under a given field of study.

Research covers field of study. Research covers interrogation,

evaluation and interpretation. Every research study starts which problem

and conclusion derived from the study becomes information of

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paramount importance in making business decisions. Decisions taken on

the basis of research conclusion yields miraculous results. Objective of

the research study is one of the decisions to be taken by the firm.

However there are indirect implications of any research study. Scope of

the research study directly depends upon the type of quality of research.

Research done with general objective will have a wider scope as

compared to research done with a specific objective.

The scope survey conducted by us can be summarized as under :

• Profile of International traders

• Customer preferences for forex services

• Awareness regarding various Forex services

• Competitive analysis

• Product portfolio management of Corporation Bank

• Customized forex services

• Level of customer satisfaction

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 LIMITATIONB OF TIME STUDY

The limitation of research study can be summaries as under :

LIMITATION OF TIME

The time specified for survey was 1 month which is short time to

analyze each and every aspect related to forex services of banks and

preferences of customer in forex market. If the time allowed would have

been more, then the selection and size of sample could have been

improvised and thus, degree of accuracy of findings would have been

higher.

LIMITATION OF SAMPLE SIZE

The information embodies in the report may not prove to be

perfect and reliable since only a small sample size of 100 was selected.

Moreover as the non-probability sampling method was used, the

representative of the sample selected could not be determined.

LIMITATION OF AREA

The area covered under the survey was Rajkot city and upcountry

station of Rajkot city. Hence, the area covered was no extensive enough.

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It may so happen that information collected at any city or any other

metro city may reveal different information from what is presented here.

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DISSECTION

OF

FINDINGS

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 Tabulation of data

Tabulation comprises of sorting of the data in two different

categories and counting the number of cases that belong to each

category. The simplest way to tabulate is to count the number of

responses to different variables of different questions where only one

variable is involved in tabulation, it is known as univariate tabulation.

Where two or more variables are involved in tabulation it is called

bivariate or multivariate tabulation. In this research report, both types of

tabulations are used.

Tabulation may be done by hand or machine depending upon the

complexity of the questionnaire. The number of tabulation will depend

upon the number of variables and the number of responses to a question

depends on the sample size.

In our research study the sample size was 100 units. The limited

sample size and the simple designing of the questions, not involving

large number of variables made hand tabulation possible and

comparatively easier.

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 ANALYSIS OF DATA

The data now collected requires analysis and interpretation. In

order to facilitate interpretation the tabulated data has to be framed in

the best from of statistical summarization whether in percentage or

average or so on. Thus statistical conclusion must than be converted into

recommendations on marketing polices, which tends to prove very

useful for the company.

The relationship between the facts and recommendation must be

real. A purely theoretical interpretation may be modified by practical

considerations. If possible recommendations can and should be

interpreted into concrete gains which would follow the proposed course

of action.

The method used by us is conversion of tabulated data into

percentage form to facilitate easy interpretation.

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  WHICH BANK DO YOU PREFER?

As per the customers preference most of the international traders

choose nationalized banks for the forex transactions. After survey we

analyzed the following reasons which are as follows:

• Reasonable processing fees

• Customer relationship since procurement of business, so comfort

level is established in regular operations

• They provide customized services

• Better employees awareness

• Nationalized banks are perceived to be more trust worthy

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  WHICH TRADER SERVICES ARE YOU AVAILING?

Generally customers use all the facilities but some of them are

extensively used because of its benefits for their business i.e. LC

opening, Bills of collection, packing credit, LC discounting etc.

 DEALING IN WHICH OF THE MAJOR

CURRENCY?

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 Dollar is the most preferred currency in the market due to its

global acceptance.

 DO YOU USE RISK HEDGING TOOLS? IF YES,

WHAT?

Due to the lack of awareness regarding option the usage is low in

spite of being better hedging tool than forward.

 RATE NATIONALIZED BANK ACCORDING TO

YOUR REFERENCE?

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Most of the customers have preferred CORPORATION bank because

they provide better facilities then other nationalized bank

 RATE PRIVATE BANK ACCORDING TO YOUR

REFERENCE

According to the international trades availing services of private

bank, working pace of ICICI bank is comparatively better than any other

units.

 OVERALL RANKING OF BANK AS PER

CUSTOMERS PREFERENCE

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RANKS

1. CORPORATION BANK

2. BANK OF BARODA

3. ICICI BANK

4. HDFC BANK

5. STATE BANK OF INDIA

6. CENTRAL BANK

7. UNION BANK OF INDIA

8. BANK OF INDIA

9. ORIENTAL BANK OF COMMERCE

10. STANDARD CHARTERED BANK

CONCLUSION

Through our training program and research, we have come to the

conclusion that Corporation Bank, Rajkot is a professionally managed

group with superior infrastructural and technical facilities and it

employees people with diverse backgrounds so as to create professional

work culture, which thrives on corporate excellence and taken pride

maintaining in high level of integrity and business ethics.

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 What we would like to recommend to Corporation Bank of stand

out in the forex market in Rajkot is :

• The bank should reduce the processing fees of forex products to

be competitive in market.

• To focus on long term customer relationship.

• To create employee awareness regarding present customers, new

employee contacting existing customers regarding various

services which might not interest the customers and create

inconvenience for them

BIBLIOGRAPHY

Marketing Management :- Philip kotler

International Business Environment :- Francies Charuliam

Research methodology :- C.R. Kothari.

sited visited

• www.corpbank.com.

• .

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