INITIAL PROJECT REPORT

SUBMITTED BY;
A.SHINY PONMALAR
PGDM (FINANCE)
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HISTORY :
NDIAN OVERSEAS BANK (IOB) WAS FOUNDED IN FEBRUARY 10 th OF THE YEAR
1937 BY shri.M.Ct.M CHIDAMBARAM CHETTYAR A PIONEER IN MANY FIELDS
BANKING INSURANCE AND INDUSTRY WITH THE TWIN OBJECTIVE OF
SPECIALISING IN FOREIGN EXCHANGE BUSINESS AND OVERSEAS BANKING.IOB
HAS AN ISO CERTIFIED INHOUSE INFORMATION TECHNOLOGY DEPARTMENT
WHICH HAS DEVELOPED THE SOFTWARE THAT 3405 BRANCHES USE TO
PROVIDE ONLINE BANKING TO CUSTOMERS.AT THE DAWN OF INDEPENDENCE
IOB HAD 38 BRANCHES IN INDIA AND 7 BRANCHES ABROAD
IOB IS ENGAGED IN THE BUSINESS OF BANKING.THE BANKS SEGMENTS
INCLUDE TREASURY,CORPORATE /WHOLESALE BANKING,RETAIL BANKING AND
OTHER BANKING OPERATIONS.ITS OPERATIONS CONSISTS OF DOMESTIC
DEPOSITS,DOMESTIC ADVANCES FOREIGN EXCHANGE OPERATIONS
,INVESTMENTS,MICRO ,SMALL AND MEDIUM ENTERPRISES,INCLUDING
MUDRA LOAN SCHEME,RETAIL BANKING,INCLUDING AROGYA MAHILA
SAVINGS BANK ACCOUNTS ,MIDCORPORATE DEPATMENTS,AGRICULTURAL
CREDIT PORTFOLIO,LOANS TO SMALL AND MARGINAL FARMERS,LOAN TO NON
CORPORATE FARMERS AND MICRO FINANCE
ITS PERSONAL BANKING SERVICES INCLUDE SAVING BANK ,CURRENT
ACCOUNT, TERMDEPOSIT ,RETAIL LOANS AND MORTGAGES AND DEPOSITORY
SERVICES.IT HAS OVER 3,400 BRANCHES IN INDIA.IT HAS OVER EIGT OVERSEAS
BRANCHES WITH OPERATIONS IN HONGKONG ,BANGKOK,SRI
LANKA,SINGAPORE AND SOUTH KOREA.
IN THE YEAR 2010-11 THE BANK HAS SIGNED A JOINT VENTURE AGREEMENT
WITH BANK OF BARODA AND ANDHRA BANK TO OPEN A BANKING SUBSIDIARY
IN MALAYSIA
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IN THE YER 2012 – 2013 IOB HAS RECEIVED NATIONAL AWARD FOR
EXCELLENCE IN MSMELENDING AN FOR OUTSTANDING PERFORMANCE FOR
IMPLEMENTING PMEGP PROGRAMME IN SOUTH ZONE.IT HAS ALSO RECEIVED
BANKERS EXCELLENCE AWARD FROM ROTARY INTERNATIONAL USA
PRODUCTS :
CORPORATE ACCOUNT,SALARY ACCOUNT,STUDENT ACCOUNT,CURRENT
ACCOUNT,SALARY ACCOUNT,CD SUPREME,CD CLASSIC,CD SUPER,HOUSING
LOAN,VEHICLE LOAN,EDUCATION LOAN,INTERNTIONALVISA CARD,CREDIT
CARD,DEBIT CARD,INSURANCE,HEALTH CARE POLICY,LIABILITY INSURANCE
,FIXED DEPOSIT ,VARDHAN DEPOSIT AND TAX SAVER SCHEME,INTERNET
BANKING AND MOBILE BANKING SERVICES

E- PRODUCT:
 INSPECTION ETHIC
 IOB PREPAID CARDS
 IOB CREDIT CARD
 IOB GIFT CARD
 KNOWLEDGE MANAGEMENT
 MULTI CURRENCY TRAVEL CARD
 RM MENU
 RTGS-NEFT
 TREASURY FOREIGN
 IOB E-TRADING
 SELF SERVICE PB PRINTING KIOSK

OBJECTIVES AND ROLE FUNCTIONS OF THE DEPARTMENT

1. OBJECTIVES OF THE DEPARTMENT
2. ROLE FUNCTIONS OF THE DEPARTMENT
3. POLICY GUIDE LINES
4. NATURE OF COMPLAINS HANDLED
5. CUSTOMER SERVICE FORTNIGHT
6. CUSTOMER SERVICE CENTER
OBJECTIVES OF DEPARTMENT
THE PRIMARY OBJECTIVE OF THE DEPARTMENT IS TO ENSURE THAT OUR BANK
BECOMES A”COMPLAINED FREE BANK”.TO ACHIEVE THIS OBJECTIVES ,THE
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DEPARTMENT CONTINUOUSLY EDUCATES STAFFS AT ALL LEVELS BY MEANS OF
FREQUENT CIRCULARS,LETTERS TO RENDER EXEMPLORY SERVICE TO
CUSTOMER AND WHEREVER COMPLAINTS ARE RECEIVED,IT FOCUSSES ON
SPEEDILY REDRESSING AND RESOLVING THEM TO THE SATISFACTION OF THE
CUSTOMER.

ROLE FUNCTION OF THE DEPARTMENT.

THE DEPARTMENTS HANDLES THE COMPLAINTS RECEIVE FROM THE PUBLIC IN
GENERAL ( ie )PRICING OF PRODUCTS, CAUSING LOSS /TO THE CUSTOMERS
DELAY IN CREDITING REFUSAL AND GRANTING CREDIT CARD FACILITIES
DISCOURTEOUS BEHAVIER OF THE STAFF ETC.
POLICY GUIDE LINES
IMPLIMENTATION OF ALL THE RECOMENTATIONS OF GOIPORIA COMMITTEE
KNOW YOUR CUSTOMER (KYC) CONCEPT AND BEST PRACTICES SCORE SHOULD
BE SCRUPULOUSLY ADOPTED BY ALL BRANCHES INTO LETTER AND SPRIT
EXTENDING THE CONCEPT OF “CUSTOMER RELATION OFFICER “
TO ACHIEVE THE TARGET TIME FRAME FOR SETTLEMENT OF COMPLAINT
NATURE OF COMPLAINTS HANDLE
 COMPLAINTS OF NRE ACCOUNT /FCNR ACCOUNT HOLDER
 DELAY IN FURNISHING STATEMENTS
 DELAY/REFUSAL TO GRANT CREDIT FACILITIES
 DELAY IN COLLECTION OF INSTRUMENT
 DISCOURTEOUS BEHAVIOUR /POOR SERVICE
 NON-COMPLIANCE WITH STANDING INSTRUCTIONS
 VARIOUS REPRESENTATIONS
 PAYMENT OF INTREST ,EXCESSSERVICE CHARGES
 DELAY IN SETTLEMENT OF CLAIMS,ISSUANCE OF
 DUPLICATE DD/BC etc.
 OTHERS

CUSTOMER SERVICE FORTNIGHT

1. COSTOMER SERVICE FORTNIGHT IS BEING ORGANISED ONCE IN A YEAR
USUALLY IN THE MONTH OF NOVEMBER.IT IS AN OPEN FORUM AND
THE PARTICIPATION BY GENERAL PUBLIC IS ALLOWED.THE
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GRIEVANCE/COMPLAINTS AGAINST THE BANK , SUGGESTION FOR
IMPROVING THE CUSTOMER SERVICE etc ARE INVITED FROM THE
PUBLIC.
2. CUSTOMERS DAY IS BEING OBSERVED ON 15TH OF EVERY MONTH AT ALL
BRANCHES /REGIONAL OFFICES AND CENTRAL OFFICE, THE GENERAL
PUBLIC ARE PROVIDED AN OPPURTUNITY TO MEET THE TOP EXECUTIVES
TO AIR THEIR GRIENVANCES IF ANY.
3. COMPLAINTS REFRRED BY OMBUDDSMAN /GOVERNMENT OF INDIA
/RESERVE BANK OF INDIA ARE ALSO BEING HANDLED BY THE
DEPARTMENT.

CUSTOMER SERVICE CENTRE:

OUR BANK IS THE CONVENOR FOR THE CUSTOMER SERVICE CENTRE

FOR CHENNAI CITY ,WITH RESERVE BANK OF INDIA AS THE CO-
ORDINATOR.THERE ARE 28 MEMBER BANKS GENERAL PUBLIC OF
CHENNAI CITY ARE FREE TO LODGE COMPLAINTS/GRIEVANCES ON ANY
OF THE CHENNAI CITY BRANCHES OF THE MEMBER BANKS FOR
EXPEDIYIOUS REDRESSAL.

SWOT ANALYSIS :
STRENGTHS :
 OVERSEAS BANKING EXPERTISE
 STRONG FOREIGN EXCHANGE OPERATIONS
 DEDICATED IT DEPARTMENTS
 BANKING SCHEMES WITH SOCIAL APPROACH LIKE AGRICULTURE SEED
BANK
 OFFER SERVICES LIKE LOANS,CREDIT CARDS,SAVINGS,INVESTMENT
 IOB IS PRESENT IN SINGAPORE,MALAYSIA ,SRILANKA

WEAKNESSES :
 LESS PENETRATION IN INDIA
 FEW NO.OF BRANCHES ACROSSTHE COUNTRY AS COMPARED TO OTHER
BRANDS
 LOW VISIBILITY IN ADVERTISING AND BRANDING
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OPPORTUNITIES :
 MOBILE BANKING,INTERNET BANKING
 EXPANSION INTO RURAL AREAS AND RETAIL BANKING
 DOING AGGRESSIVE MARKETING IN ORDER TO IMPROVE BRAND VALUE

THREATS :
 ECONOMIC CRISIS AND FLUCTUATING MARKETS
 HIGHLY COMPETITIVE ENVIRONMENT
 STRINGENT BANKING NORMS LAID BY RBI

COMPETITORS:
 INDIAN BANK
 ANDHRA BANK
 CANARA BANK
 ICICI BANK
 SBI
 BANK OF BARODA

PROJECT TITLE : APPRAISAL OF CORPORATE LOANS.

CREDIT OR LOAN APPRAISAL IS THE PROCESS OF EVALUATING A PROPOSALS

WORTHINESS OF BEING PROVIDED WITH THE TYPE OF CREDIT FACILITY THE
BORROWER WANTS TO AVAIL THE FACILITY FROM A CONSORTIUM OF BANKS
IT INCLUDES THE EVALUATION OF CURRENT FINANCIAL S TATUS,APPRAISAL OF
PROJECTED CASH FLOWS ,P$L AND BALANCE SHEEET,PURPOSE FOR WHICH
THE FACILIY IS AVAILED,TECHNICAL AND FINANCIAL FEASIBILITY OF THE
PROJECT,CREDIT HISTORY,MANAGERIAL COMPETENCE AND PAST EXPERIENCE,
etc
AS A PART OF APPRAISAL PROCESS, CREDIT RATING IS DONE FOR THE
PROPOSAL AND IS CONDUCTED EITHER BY THE BANK ITSELF OR IS GET DONE
BY APPROVED EXTERNAL AGENCIES.
THE PURPOSE OF THIS PROJECT IS TO EXPLAIN , IN ABRIEF AND GENERAL
WAY,THE MANNER IN WHICH RISKS ARE APPROACHED BY FINANCIERS IN A
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PROJECT FINANCE TRANSACTIONS. SUCH RISK MINIMIZATION LIES AT THE
HEART OF PROJECT FINANCE.EFFICIENT MANAGEMENT OF CREDIT PORTFOLIO
IS OF UTMOST IMPORTANCE AS IT HAS A TREMENDOUS IMPACT ON THE
BANKS ASSETS QUALITY AND PROFITABILITY.THE ONGOING FINNCIAL
REFORMS HAVE NO DOUBT PROVIDED UNPARALLEL OPPORTUNITIES TO
BANKS FOR GROWTH, BUT HAVE SIMULTANEOUSLY EXPOSED THEM TO
VARIOUS RISKS,WHICH NEED TO BE EFFECTIVELY MANAGED.