A

REPORT
ON
ORIENTIAL BANK OF COMMERCE

SUBMITTED TO: SUBMITTED BY:

Prof.Vibha Mittal 1. Manoj Kumar Goyal(AA207)
NSB School of Business 2. Girraj Prasad Sahu (AA197)
3. Nirved Vaishnaw (AA213)
Section= F-2
BATCH- JULY 08-10

1
 PREFACE
Management of modern business requires an appreciation of multidisciplinary concept and
in-depth knowledge of specific analytical tools, geared to the solution to the real life
problems. No doubt every real solution is unique but a set of theoretical tools of knowledge,
it self based on empirical foundation can help in developing the mechanism for handling such
situation. So the MBA curriculum has been desired to provide to the future manager ample
practical exposure to the business world.

Summer training is essential for the fulfillment of MBA curriculum,it

provides an extra opportunity to the student to understand the industry with special emphasis
on the development of skill in analyzing, interpreting practical problem through application
of management, the whole study has been divided into the various parts.

The First Chapter of the study is Introduction where in the student has
presented introduction to the industry and company she/he visited.

The Second chapter is project, which contains title, objective , Significance,

Methodology ,Scope And Limitation of the study.

The Third Chapter, In this the student has reported facts and information
gathered by him in the course of study of topic.

The Fourth Chapter, the student has done critical analysis of the company in
the form of SWOT analysis.

The Fifth chapter, the student has presented his conclusion.

2
 DECLARATION

We hereby declare that the dissertation submitted by our group title “A

REPORT ON ORIENTIAL BANK OF COMMERCE” is my original work
and for not been copied from any source.

Group’s Members-
Name- Manoj Kumar Goyal
Roll no.- GJUJUL08AA207
Name- Girraj Prasad Sahu
Roll no.- GJUJUL08AA197
Name- Nirved Vaishnaw
Roll no.- GJUJUL08AA213

3
 CONTENTS

1. PREFACE

2. ACKNOWLEDGEMENT

3. DECLARATION

4. INTRODUCTION TO BANK

5. INTRODUCTION TO BANKING SYSTEM

6. HISTORY OF BANKING IN INDIA

7. COMPANY PROFILE- OBC LTD

8. FACILITIES

9. BASIC BANKING ACCOUNT

10. INTERNET BANKING

11. MERCHANT BANKING DIVISION

12. COMPANY’S FINANCIAL REPORT

13. CASH MANAGEMENT SERVICES

14. BIBLIOGRAPHY

4
 INTRODUCTION OF BANK

A Banker or Bank is a financial institution whole primary activity is to act as a payment

agent for customers and to borrow and lend money. It is an institution of receiving, keeping,
and lending money.

The first state deposit bank, Banco di San Giorgio (Bank of St. George), was founded in
1407 at Genoa, Italy.

The definition of a bank varies from country to country.

Under English common law, a banker is defined as a person who carries on the business of
banking, which is specified as:

• conducting current accounts for his customers

• paying cheques drawn on him, and
• collecting cheques for his customers.

In most English common law jurisdictions there is a Bills of Exchange Act that codifies the
law in relation to negotiable instruments, including cheques, and this Act contains a statutory
definition of the term banker: banker includes a body of persons, whether incorporated or
not, who carry on the business of banking' (Section 2, Interpretation). Although this
definition seems circular, it is actually functional, because it ensures that the legal basis for
bank transactions such as cheques do not depend on how the bank is organised or regulated.

The requirements for the issue of a bank licence vary between jurisdictions but typically
include:

1. Minimum capital
2. Minimum capital ratio
3. 'Fit and Proper' requirements for the bank's controllers, owners, directors, and/or
senior officers
4. Approval of the bank's business plan as being sufficiently prudent and plausible.

5
 INTRODUCTION TO BANKING SYSTEM

The banking section will navigate through all the aspects of the Banking System in India. It
will discuss upon the matters with the birth of the banking concept in the country to new
players adding their names in the industry in coming few years.

The banker of all banks, Reserve Bank of India (RBI), the Indian Banks Association (IBA)
and top 20 banks like IDBI, HSBC, ICICI, ABN AMRO, etc. has been well defined under
three separate heads with one page dedicated to each bank.

However, in the introduction part of the entire banking cosmos, the past has been well
explained under three different heads namely:

• History of Banking in India

• Nationalisation of Banks in India
• Scheduled Commercial Banks in India

The first deals with the history part since the dawn of banking system in
India. Government took major step in the 1969 to put the banking sector
into systems and it nationalised 14 private banks in the mentioned year.
This has been elaborated in Nationalisationof Banks in India. The last but
not the least explains about the scheduled and unscheduled banks in India.
Section 42 (6) (a) of RBI Act 1934 lays down the condition of scheduled
commercial banks. The description along with a list of scheduled
commercial banks are given on this page.

6
 BANK IN INDIA
History of Banking in India
Without a sound and effective banking system in India it cannot have a healthy economy. The
banking system of India should not only be hassle free but it should be able to meet new
challenges posed by the technology and any other external and internal factors.

For the past three decades India's banking system has several outstanding achievements to its
credit. The most striking is its extensive reach. It is no longer confined to only metropolitans
or cosmopolitans in India. In fact, Indian banking system has reached even to the remote
corners of the country. This is one of the main reason of India's growth process.

The government's regular policy for Indian bank since 1969 has paid rich dividends with the
nationalisation of 14 major private banks of India.

Not long ago, an account holder had to wait for hours at the bank counters for getting a draft
or for withdrawing his own money. Today, he has a choice. Gone are days when the most
efficient bank transferred money from one branch to other in two days. Now it is simple as
instant messaging or dial a pizza. Money have become the order of the day.

The first bank in India, though conservative, was established in 1786. From 1786 till today,
the journey of Indian Banking System can be segregated into three distinct phases. They are
as mentioned below:

• Early phase from 1786 to 1969 of Indian Banks

• Nationalisation of Indian Banks and up to 1991 prior to Indian banking sector
Reforms.
• New phase of Indian Banking System with the advent of Indian Financial & Banking
Sector Reforms after 1991.

To make this write-up more explanatory, I prefix the scenario as Phase I, Phase II and Phase
III.

Phase I

The General Bank of India was set up in the year 1786. Next came Bank of Hindustan and
Bengal Bank. The East India Company established Bank of Bengal (1809), Bank of Bombay
(1840) and Bank of Madras (1843) as independent units and called it Presidency Banks.
These three banks were amalgamated in 1920 and Imperial Bank of India was established
which started as private shareholders banks, mostly Europeans shareholders.

7
In 1865 Allahabad Bank was established and first time exclusively by Indians, Punjab
National Bank Ltd. was set up in 1894 with headquarters at Lahore. Between 1906 and 1913,
Bank of India, Central Bank of India, Bank of Baroda, Canara Bank, Indian Bank, and Bank
of Mysore were set up. Reserve Bank of India came in 1935.

During the first phase the growth was very slow and banks also experienced periodic failures
between 1913 and 1948. There were approximately 1100 banks, mostly small. To streamline
the functioning and activities of commercial banks
, the Government of India came up with The Banking Companies Act, 1949 which was later
changed to Banking Regulation Act 1949 as per amending Act of 1965 (Act No. 23 of 1965).
Reserve Bank of India was vested with extensive powers for the supervision of banking in
india as the Central Banking Authority.

During those days public has lesser confidence in the banks. As an aftermath deposit
mobilisation was slow. Abreast of it the savings bank facility provided by the Postal
department was comparatively safer. Moreover, funds were largely given to traders.

Phase II

Government took major steps in this Indian Banking Sector Reform after independence. In
1955, it nationalised Imperial Bank of India with extensive banking facilities on a large scale
specially in rural and semi-urban areas. It formed State Bank of india to act as the principal
agent of RBI and to handle banking transactions of the Union and State Governments all over
the country.

Seven banks forming subsidiary of State Bank of India was nationalised in 1960 on 19th July,
1969, major process of nationalisation was carried out. It was the effort of the then Prime
Minister of India, Mrs. Indira Gandhi. 14 major commercial banks in the country was
nationalised.

Second phase of nationalisation Indian Banking Sector Reform was carried out in 1980 with
seven more banks. This step brought 80% of the banking segment in India under Government
ownership.

8
The following are the steps taken by the Government of India to Regulate Banking
Institutions in the Country:

• 1949 : Enactment of Banking Regulation Act.

• 1955 : Nationalisation of State Bank of India.
• 1959 : Nationalisation of SBI subsidiaries.
• 1961 : Insurance cover extended to deposits.
• 1969 : Nationalisation of 14 major banks.
• 1971 : Creation of credit guarantee corporation.
• 1975 : Creation of regional rural banks.
• 1980 : Nationalisation of seven banks with deposits over 200 crore.

After the nationalisation of banks, the branches of the public sector bank India rose to
approximately 800% in deposits and advances took a huge jump by 11,000%.

Banking in the sunshine of Government ownership gave the public implicit faith and
immense confidence about the sustainability of these institutions.

Phase III

This phase has introduced many more products and facilities in the banking sector in its
reforms measure. In 1991, under the chairmanship of M Narasimham, a committee was set up
by his name which worked for the liberalisation of banking practices.

The country is flooded with foreign banks and their ATM stations. Efforts are being put to
give a satisfactory service to customers. Phone banking and net banking is introduced. The
entire system became more convenient and swift. Time is given more importance than
money.

The financial system of India has shown a great deal of resilience. It is sheltered from any
crisis triggered by any external macroeconomics shock as other East Asian Countries
suffered. This is all due to a flexible exchange rate regime, the foreign reserves are high, the
capital account is not yet fully convertible, and banks and their customers have limited
foreign exchange exposure.

9
 Nationalisation of Banks in India

The nationalisation of banks in India took place in 1969 by Mrs. Indira Gandhi the then prime
minister. It nationalised 14 banks then. These banks were mostly owned by businessmen and
even managed by them.

• Central Bank of India

• Bank of Maharashtra
• Dena Bank
• Punjab National Bank
• Syndicate Bank
• Canara Bank
• Indian Bank
• Indian Overseas Bank
• Bank of Baroda
• Union Bank
• Allahabad Bank
• United Bank of India
• UCO Bank
• Bank of India

Before the steps of nationalisation of Indian banks, only State Bank of India (SBI) was
nationalised. It took place in July 1955 under the SBI Act of 1955. Nationalisation of Seven
State Banks of India (formed subsidiary) took place on 19th July, 1960.
The State Bank of India is India's largest commercial bank and is ranked one of the top five
banks worldwide. It serves 90 million customers through a network of 9,000 branches and it
offers -- either directly or through subsidiaries -- a wide range of banking services. The
second phase of nationalisation of Indian banks took place in the year 1980. Seven more
banks were nationalised with deposits over 200 crores. Till this year, approximately 80% of
the banking segment in India were under Government ownership.

After the nationalisation of banks in India, the branches of the public sector banks rose to
approximately 800% in deposits and advances took a huge jump by 11,000%.

• 1955 : Nationalisation of State Bank of India.

• 1959 : Nationalisation of SBI subsidiaries.
• 1969 : Nationalisation of 14 major banks.
• 1980 : Nationalisation of seven banks with deposits over 200 crores.

10
 Scheduled Commercial Banks In India

The commercial banking structure in India consists of:

• Scheduled Commercial Banks in India

• Unscheduled Banks in India

Scheduled Banks in India constitute those banks which have been included in the Second
Schedule of Reserve Bank of India(RBI) Act, 1934. RBI in turn includes only those banks in
this schedule which satisfy the criteria laid down vide section 42 (6) (a) of the Act.

As on 30th June, 1999, there were 300 scheduled banks in India having a total network of
64,918 branches.The scheduled commercial banks in India comprise of State bank of India
and its associates (8), nationalised banks (19), foreign banks (45), private sector banks (32),
co-operative banks and regional rural banks.

"Scheduled banks in India" means the State Bank of India constituted under the State Bank of
India Act, 1955 (23 of 1955), a subsidiary bank as defined in the State Bank of India
(Subsidiary Banks) Act, 1959 (38 of 1959), a corresponding new bank constituted under
section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5
of 1970), or under section 3 of the Banking Companies (Acquisition and Transfer of
Undertakings) Act, 1980 (40 of 1980), or any other bank being a bank included in the Second
Schedule to the Reserve Bank of India Act, 1934 (2 of 1934), but does not include a co-
operative bank".

"Non-scheduled bank in India" means a banking company as defined in clause (c) of section
5 of the Banking Regulation Act, 1949 (10 of 1949), which is not a scheduled bank".
The commercial banking structure in India consists of:

• Scheduled Commercial Banks in India

• Unscheduled Banks in India

Scheduled Banks in India constitute those banks which have been included in the Second
Schedule of Reserve Bank of India(RBI) Act, 1934. RBI in turn includes only those banks in
this schedule which satisfy the criteria laid down vide section 42 (6) (a) of the Act.

11
Major Banks in India
• ABN-AMRO Bank
• Abu Dhabi Commercial Bank
• American Express Bank
• Andhra Bank
• Allahabad Bank
• Axis Bank (Earlier UTI Bank)
• Bank of Baroda
• Bank of India
• Bank of Maharastra
• Bank of Punjab
• Bank of Rajasthan
• Bank of Ceylon
• BNP Paribas Bank
• Canara Bank
• Catholic Syrian Bank
• Central Bank of India
• Centurion Bank
• China Trust Commercial Bank
• Citi Bank
• City Union Bank
• Corporation Bank
• Dena Bank
• Deutsche Bank
• Development Credit Bank
• Dhanalakshmi Bank
• Federal Bank
• HDFC Bank
• HSBC
• ICICI Bank
• IDBI Bank
12
• Indian Bank
• Indian Overseas Bank
• IndusInd Bank
• ING Vysya Bank
• Jammu & Kashmir Bank
• JPMorgan Chase Bank
• Karnataka Bank
• Karur Vysya Bank
• Laxmi Vilas Bank
• Oriental Bank of Commerce
• Punjab National Bank
• Punjab & Sind Bank
• Scotia Bank
• South Indian Bank
• Standard Chartered Bank
• State Bank of India (SBI)
• State Bank of Bikaner & Jaipur
• State Bank of Hyderabad
• State Bank of Indore
• State Bank of Mysore
• State Bank of Saurastra
• State Bank of Travancore
• Syndicate Bank
• Taib Bank
• UCO Bank
• Union Bank of India
• United Bank of India
• United Western Bank
• Vijaya Bank
 COMPANY PROFILE

13
 ORIENTAL BANK OF COMMERCE
Head Office, New Delhi

OBC Posts Robust Operating Profit of Rs.516.91 Crores

YOY Growth of 46.13%, Crosses Business Mix of Rs.174,000 Crores.

Oriental Bank of Commerce declared its Quarterly results for the quarter ending June 2009,
today, at Delhi. Addressing the media Sh. Alok K Misra, Chairman & Managing Director
informed that the business-mix of the Bankhad increased to Rs. 1,74,261 crores as on 30th
June 2009, registering a growth of 25.12% (YOY). Aggregate Depositsgrew by 23.35% (YOY) and stood at Rs, while Gross Advances showed growth

of 27.7% (YOY) at Rs. 71566 Crores

The Bank has presently 1409 Branches and 61 Extension counters and 856 ATMs across
the Country.

Sh.Alok K. Misra while announcing the financial results of the Bank for the quarter
(Q1) of FY2009-10 stated that despite difficult prevailing market conditions Bank has
posted encouraging financial results with its focused business strategy and continuing
support of our over 12 Million satisfied customers spread all over the country.

The Bank lays special focus on lending to various segments of Priority Sector, viz.,
Agriculture, Micro, Small & Medium Enterprises, Education and Housing. In the
coming years, the Bank would be increasingly focusing on Rural and Semi-Urban areas
for driving its business growth.

The Bank has recently been given the Lead Bank responsibility in the newly formed
Palwal district in Haryana. The Bank is already working as Lead Bank in two Districts
namely Ferozepur in Punjab and Sriganganagar in Rajasthan.

IT Initiatives

Mr. Misra informed that the Bank has leveraged its IT capability of 100%
computerization on Core Banking Solution platform offering an array of IT based
products viz., Internet Banking, Electronic Remittance facilities through RTGS/NEFT,

14
Online Education Loan, E-shoppe, e-taxes, Online Trading of shares, SMS alerts,
Proton debit cards, Cashmate cards for students and third party mutual funds.

Insurance Joint Venture

The Life Insurance joint Venture of the Bank Canara HSBC Oriental Bank of
Commerce Life Insurance Co. Ltd. has completed one year of operation. With a view to
extend Life Insurance benefits to the rural and semi urban populace, the Bank has,
through its Joint Venture Life Insurance Company viz. Canara HSBC Oriental Bank of
Commerce Life Insurance Company Ltd. launched a simple Life Insurance Product
"Saral Bima" which is affordable and tailor made to meet the life insurance
requirements of the Rural & Semi-Urban populace. The Bank has already issued 3686
policies with first premium aggregating Rs.18.76 Crore and booked gross income of
Rs.6.23 Crore in the current financial year up to 30th June 2009.
Overseas Representative Office

Bank has recently opened its first overseas Representative Office in Dubai which is
providing special services including remittances to the NRIs living in Dubai.

Our Vision

To be a sound all India, customer centric, efficient retail bank with contemporary size,
technology and human capital; endeavouring to enrich lives across all sections of society; and
committed to upholding the highest standards of corporate governance.

Our Mission
• To provide the finest banking services by upgrading human capital and infusing
advanced technology, thereby achieving total customer satisfaction; and being reckoned
as the “Best Bank” in the Industry on all efficiency parameters.
• To enhance shareholders’ wealth by ensuring sound growth of business and make
valuable contributions to national economic growth.

15
 Management Profile

16
 Chairman and Managing Director

Sh.T.Y.Prabhu

Executive Directors

Sh.H.Rathnakara Hegde Sh. S.C.Sinha

Board of Directors

17
Smt. Sumita Dawra Sh. S.K.Newley
 Sh. Umesh Kr. Khaitan Sh. C.K. Sabharwal

Financial Highlights
Sh. Kamal Bhushan Sh. V.V. Sai Reddy

CRAR as on 30th June 2009 stood at 12.93 %.

Gross NPAs declined to 1.61% from 2.18% (Y-o-Y) while Net NPAs came down
to 0.71% (Y-o-Y) from
0.96 % as on 30.06.2008.
Dr. R.S. Maharishi Sh. T. Valliappan
Operating profit grew on YOY basis by 46.13% to Rs.516.91 Crores as on 30th June
2009 from Rs.353.73 Crores as on 30th June 2008.

Net Profit increased on YOY basis by 16.73% to Rs.257.41 Crores as on 30.06.2009

from Rs.220.52 Crores as on 30th June 2008.

Sh. K.B.R.
Non-interest income grew on YOY Naidubasis Sh.
byVijay Jagirdar
90.71% to Rs.391.89 Crores as on
30.06.2009 compared toRs.205.49 Crores as on 30th June 2008.

Oriental Bank of Commerce continues to have one of the highest Business per
Employee amongst Public Sector Banks increasing to Rs. 11.78 Crores from Rs.9.47
Crores registering a growth of 24.39% (YOY Basis).

The Business Per Branch (YOY) has gone up to Rs.123.85 Crores as on 30th June 2009
from Rs.104.87 Crores as on 30th June2008, registering a growth of
18.09 %.

Priority Sector & Retail Credit

Banks advances to Priority Sector stood at Rs.22626 Crores showing 20% growth
(YOY).

Banks advances to Agriculture are Rs.8783 Crores showing 29% growth (YOY).

Bank retails advances are Rs.9504 Crores showing 20% growth (YOY).

Bank Housing Advances stood at Rs.7144 Crores showing 19% growth (YOY).

Education Loan advances are Rs.823 Crores showing 33% growth (YOY).

18
19
 Facilities

OBC is proud of its association with NRIs and takes special pride in serving them
through various tailor-made products designed to suit all requirements of NRIs.

Oriental Bank of Commerce has 1450 branches & Extension Counters and 881
onsite / offsite ATMs including 6 Mobile ATMs spread all across India. All the
service outlets of OBC are fully computerized with branches connected through
Centralized Banking Solution, Internet Banking and Phone Banking. So the
customer of an OBC Branch is a CUSTOMER OF ALL CBS BRANCHES since we
are offering Any Branch Banking (ABB) & Multi city Cheque Book facility to CBS
Customers.

Visa Debit Card holders of the Bank have access to over 40000 ATMs of other
member banks of VISA, MITR and NFS in the country for host of services
like withdrawal and Balance enquiries and to effect card payment for shopping in
India and abroad through over 28 Million Point of Sale (POS) locations. Cardholders
of member Banks of VISA/NFS/MITR can also use our 881 ATMs for cash
withdrawal and balance enquiry.

We are herein below sharing the bouquet of Foreign Exchange related and Banking
facilities available to our esteemed NRIs with OBC; along with extant Investment
and other Govt./RBI guidelines.

Facilities being provided to NRIs

1 Remittances to India With a view to facilitating efficient flow of inward

. remittances, OBC has set up correspondent banking relationships with almost all
the major International Banks across the globe. OBC opens foreign currency
accounts in which NRIs can send remittances to India in any major currency such
as Pound Sterling, US Dollar, Euro, Japanese Yen, Canadian Dollar, Australian
Dollars, Singapore Dollar, Swiss Franc, Hong Kong Dollar etc. through SWIFT/
telegraphic transfers/ demand drafts from any corner of the World. OBC has also
entered into an arrangement with Western Union for remittances up to USD 2500
or its equivalent and has also made arrangements for transfer of money from
middle east countries through three Exchange Houses

2
Deposit Accounts
.
NRIs are welcome to open their following type of deposit accounts by
downloading the Account Opening Forms, current rates of interest offered on
different types of accounts and other information from our website
20
Financial Inclusion-Basic Banking Account (SB-Basic)

(Salient Features)

Oriental Bank of Commerce launched the Basic Banking 'No-Frills' Account

Scheme as a Corporate Social Responsibility (CSR) of the Bank intended to
make banking accessible to vast sections of the population, with the prime
objectives as under:

To help achieving greater financial inclusion by attracting vast sections / segments /

strata of the society particularly the underprivileged ones / unbanked population of
the country within the banking system.

The Scheme came into effect from 16.01.2006, with Salient Features, as under:

A.Eligibility: Indian National Citizens, unable to afford, without financial hardship,

the cost of maintaining bank account, Individuals who intend to keep balances not
exceeding Rs. 50,000/- in all their accounts taken together and total credits not
exceeding Rs. 2 lakh in a year.

B.Opening of Account: with Simplified KYC Procedure based on satisfactory

Introduction by another Account Holder, on whom KYC has been done,
photograph of the customer, who intends to open the account, and his address
need to be Certified by the Introducer. Account can be opened in individual
capacity or in joint names or with minors.

C.Features:

• Nominal Initial Deposit of Rs. 10/- for opening of the Account.

• No Minimum Balance Requirement / No Minimum Balance Charges.
• No Standing Instruction Charges for Transfer of Funds within same
Branch.
• No Incidental Charges on Account becoming Inoperative.
• 6 Withdrawals Free Per Month (Additional Withdrawals with Charges of
Rs. 5/- Per Withdrawal).
• Nomination Facility.
• One Cheque Book of 25 Leaves, Free of Cost, during a Calendar Year.
Cheques shall be Collected in these Accounts, as in case of other Savings

21
 Accounts. However, ATM Card facility not available to SB Basic Account
holders.
• Other Services can be availed on Charges prescribed by the bank.
• SB Basic Account holders can deposit in Term Deposit Products viz.
Progressive Deposit (PD) or Fixed Deposit (FDR) or Cumulative Deposit
(CDR), however, aggregate of all the deposits, taken together, should remain
within the Eligibility Ceilings.
• In case value exceeds Eligibility Ceilings / Rs. 50,000/-, ‘SB Basic’ shall be
treated as ‘SB General’ account and all Terms/Conditions attached to ‘SB
General’ shall become applicable for operation of the Account viz. fulfillment
of KYC Norms, Minimum Balance and Charges as per the prevailing
guidelines of the Bank. Once SB Basic upgrades to SB General, there will be
no conversion back to SB Basic.
• As a caution, bank may notify the Customer when balance reaches Rs.
40,000/- or the total credit in a year reaches Rs. 80,000/- that appropriate
documents for conducting KYC be submitted otherwise operations in the
account will be stopped when the total balance in all the accounts taken
together exceeds Rs. 50,000/- or the total credit in the Accounts exceeds Rs.
2,00,000/- in a year.

Company’s Financial Report

(Rs crore)
Balance sheet
Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05

Sources of funds

22
 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05

Owner's fund

Equity share capital 250.54 250.54 250.54 250.54 192.54

Share application money - - - - -

Preference share capital - - - - -

Reserves & surplus 6,201.81 5,525.36 5,349.77 4,920.24 3,134.47

Loan funds
Secured loans - - - - -

Unsecured loans 98,368.85 77,856.70 63,995.97 50,197.46 47,850.33

Total 1,04,821.20 83,632.60 69,596.28 55,368.24 51,177.34

Uses of funds
Fixed assets

Gross block 2,062.88 970.31 901.58 848.28 701.30

Less : revaluation reserve 951.10 - - - -

Less : accumulated depreciation 680.34 587.55 526.60 467.43 392.37

Net block 431.45 382.76 374.98 380.85 308.93

Capital work-in-progress 1.31 4.70 7.70 3.32 71.59

Investments 28,488.95 23,950.68 19,808.36 16,817.57 18,342.18

Net current assets

Current assets, loans & advances 1,984.28 1,586.61 2,097.55 2,632.69 2,504.27

Less : current liabilities & provisions 6,088.34 5,232.89 3,717.38 2,692.71 2,164.02

Total net current assets -4,104.06 -3,646.28 -1,619.82 -60.01 340.25

Miscellaneous expenses not written - - - - -

Total 24,817.65 20,691.86 18,571.22 17,141.72 19,062.95

Profit loss account

Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05

Income
23
 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05

Operating income 9,613.00 7,312.89 5,292.95 4,371.72 3,873.84

Expenses
Material consumed - - - - -

Manufacturing expenses - - - - -

Personnel expenses 756.16 549.37 520.86 500.46 380.52

Selling expenses 13.87 10.62 11.65 9.10 9.08

Adminstrative expenses 703.10 255.10 274.91 386.08 461.79

Expenses capitalised - - - - -

Cost of sales 1,473.12 815.08 807.41 895.65 851.39

Operating profit 1,279.91 1,341.63 1,011.96 962.22 974.23

Other recurring income 81.37 74.80 91.54 68.36 38.46

Adjusted PBDIT 1,361.28 1,416.43 1,103.50 1,030.57 1,012.69

Financial expenses 6,859.97 5,156.17 3,473.58 2,513.85 2,048.22

Depreciation 80.30 75.05 71.82 75.52 92.79

Other write offs - - - - -

Adjusted PBT 1,280.98 1,341.38 1,031.68 955.05 919.91

Tax charges 254.63 420.96 226.30 161.74 -139.07

Adjusted PAT 905.57 838.28 782.94 803.16 988.38

Non recurring items -0.15 -485.07 -202.13 -245.99 -262.31

Other non cash adjustments - - - -19.84 -

Reported net profit 905.42 353.22 580.81 537.32 726.07

Earnigs before appropriation 905.93 353.63 581.70 538.27 726.81

Equity dividend 182.89 117.75 117.75 112.74 57.76

Preference dividend - - - - -

Dividend tax 31.08 20.01 18.52 15.81 8.10

Retained earnings 691.95 215.87 445.42 409.71 660.94

Cash flow
Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05

Profit before tax - - - - -

Net cashflow-operating activity 2,169.61 2,788.87 1,415.25 -3,167.37 4,125.54

Net cash used in investing activity -125.75 -77.17 -26.46 -79.16 -311.47

24
 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05

Netcash used in fin. activity -33.47 -6.17 594.72 1,228.95 128.85

Net inc/dec in cash and equivlnt 2,010.39 2,705.53 1,983.51 -2,017.59 3,942.92

Cash and equivalnt begin of year 10,214.74 7,509.21 5,525.70 7,543.29 3,600.37

Cash and equivalnt end of year 12,225.14 10,214.74 7,509.21 5,525.70 7,543.29

Quarterly results
Sep ' 09 Jun ' 09 Mar ' 09 Dec ' 08 Sep ' 08

Sales 2,495.83 2,404.21 2,348.11 2,402.81 2,151.83

Operating profit 2,079.46 1,893.72 2,006.56 1,853.87 1,640.18

Interest 1,934.79 1,920.05 1,887.81 1,834.97 1,630.18

Gross profit 504.88 516.91 538.31 386.23 406.71

EPS (Rs) 10.81 10.27 7.82 10.07 9.46

Half yearly results

Sep ' 09 Mar ' 09 Sep ' 08 Mar ' 08 Sep ' 07

Sales 4,900.04 4,750.92 4,105.55 3,658.36 3,179.82

Operating profit 3,973.18 3,860.43 3,088.30 3,187.14 2,614.27

Interest 3,854.84 3,722.78 3,137.19 2,818.99 2,337.18

Gross profit 1,021.79 924.54 760.44 621.70 597.34

EPS (Rs) 21.08 17.88 12.39 16.14 17.43

Annual results
Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05

Sales 8,856.47 6,838.18 5,164.90 4,118.92 3,571.90

Operating profit 6,948.73 5,801.41 3,923.43 2,925.98 2,376.02

Interest 6,859.97 5,156.17 3,473.58 2,513.85 2,048.22

Gross profit 1,684.98 1,219.04 1,296.69 1,191.98 1,233.15

EPS (Rs) 36.14 33.57 33.00 32.06 39.51

Dividend
Year Month Dividend (%)

2009 Apr 73

2008 Apr 47

2007 Apr 27

2007 Feb 20

25
Year Month Dividend (%)

2006 Apr 45

2005 May 30

2004 May 30

2004 Jan 20

2003 May 45

2002 May 35

2001 May 35

2000 May 35

1999 Jun 35

1998 May 30

1997 Jun 25

Share holding
Share holding pattern as on : 30/09/2009 30/06/2009 31/03/2009

Face value 10.00 10.00 10.00

No. Of Shares % Holding No. Of Shares % Holding No. Of Shares % Holding

Promoter's holding

Indian Promoters 128000000 51.09 128000000 51.09 128000000 51.09

Sub total 128000000 51.09 128000000 51.09 128000000 51.09

Non promoter's holding

Institutional investors

Banks Fin. Inst. and Insurance 59833798 23.88 62062396 24.77 63497531 25.34

FII's 27597729 11.02 25322501 10.11 23999699 9.58

Sub total 98668058 39.38 99479294 39.71 101503114 40.51

Other investors

Private Corporate Bodies 8291090 3.31 6869779 2.74 5926288 2.37

NRI's/OCB's/Foreign Others 231885 0.09 276004 0.11 222865 0.09

Others 9885 - 10368 - 8839 -

Sub total 8532860 3.41 7156151 2.86 6157992 2.46

General public 15338782 6.12 15904255 6.35 14878594 5.94

Grand total 250539700 100.00 250539700 100.00 250539700 100.00

Capital structure
26
From Paid Up Shares Paid Up Face
Year To Year Class Of Share Authorized Capital Issued Capital (Nos) Value Paid Up Capital

2008 2009 Equity Share 1,500.00 250.54 250539700 10 250.54

2007 2008 Equity Share 1,500.00 250.54 250539700 10 250.54

2006 2007 Equity Share 1,500.00 250.54 250539700 10 250.54

2005 2006 Equity Share 1,500.00 250.54 250539700 10 250.54

2004 2005 Equity Share 1,500.00 192.54 192539700 10 192.54

2003 2004 Equity Share 1,500.00 192.54 192539700 10 192.54

2002 2003 Equity Share 1,500.00 192.54 192539700 10 192.54

2000 2002 Equity Share 1,500.00 192.54 192539700 10 192.54

1994 2000 Equity Share 1,500.00 192.54 192539700 10 192.54

(Rs crore)

Ratios
Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05

Per share ratios

Adjusted EPS (Rs) 36.14 33.46 31.25 32.06 51.33

Adjusted cash EPS (Rs) 39.35 36.45 34.12 35.07 56.15

Reported EPS (Rs) 36.14 33.56 33.00 22.24 39.51

Reported cash EPS (Rs) 39.34 36.56 35.87 25.25 44.33

Dividend per share 7.30 4.70 4.70 4.50 3.00

Operating profit per share (Rs) 51.09 53.55 40.39 38.41 50.60

Book value (excl rev res) per share (Rs) 257.54 230.54 223.53 206.39 172.80

Book value (incl rev res) per share (Rs.) 295.50 230.54 223.53 206.39 172.80

Net operating income per share (Rs) 383.69 291.89 211.26 174.49 201.20

Free reserves per share (Rs) 159.68 158.83 155.37 144.05 65.84

Profitability ratios
Operating margin (%) 13.31 18.34 19.11 22.01 25.14

Gross profit margin (%) 12.47 17.31 17.76 20.28 22.75

Net profit margin (%) 9.33 11.38 15.35 12.54 19.44

Adjusted cash margin (%) 10.16 12.36 15.87 19.78 27.63

Adjusted return on net worth (%) 14.03 14.51 13.98 15.53 29.70

Reported return on net worth (%) 14.03 14.55 14.76 10.77 22.86

Return on long term funds (%) 124.29 111.07 80.04 67.27 87.09

Leverage ratios

27
 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05

Long term debt / Equity - - - - -

Total debt/equity 15.25 13.48 11.43 9.71 14.38

Owners fund as % of total source 6.15 6.90 8.04 9.33 6.50

Fixed assets turnover ratio 4.66 7.54 5.87 5.15 5.52

Liquidity ratios
Current ratio 0.32 0.30 0.56 0.97 1.16

Current ratio (inc. st loans) 0.01 0.01 0.03 0.04 0.05

Quick ratio 12.71 12.13 13.87 15.03 15.83

Inventory turnover ratio - - - - -

Payout ratios
Dividend payout ratio (net profit) 23.63 16.38 16.48 23.07 8.65

Dividend payout ratio (cash profit) 21.70 15.04 15.16 20.31 7.71

Earning retention ratio 76.38 83.57 82.60 84.00 93.34

Cash earnings retention ratio 78.30 84.92 84.06 85.37 93.91

Coverage ratios
Adjusted cash flow time total debt 99.78 85.24 74.87 57.13 44.26

Financial charges coverage ratio 1.20 1.27 1.32 1.41 1.49

Fin. charges cov.ratio (post tax) 1.14 1.18 1.26 1.25 1.42

Component ratios
Material cost component (% earnings) - - - - -

Selling cost Component 0.14 0.14 0.22 0.20 0.23

Exports as percent of total sales - - - - -

Import comp. in raw mat. consumed - - - - -

Long term assets / total Assets 0.93 0.93 0.90 0.86 0.88

Bonus component in equity capital (%) - - - - -

Cash Management Services

CASH MANAGEMENT SERVICES FOR CORPORATES

Cash Management is logistics of moving money. Trade transaction result in movement of

money across locations & across parties. It serves as the means to keep an organization
functioning by making the best use of cash or liquid resources of the organization. We provide
time & place value for money through CMS.
28
Cash Management is about managing:

• Movement of money.
• Movement of paper/instructions/cheques.
• Information on movement of paper/money.

To Reduce:-

• Excess funds requirements, overdrafts, borrowings.

• Wastage of idle float funds.
• Unevenness in information, process & clearing bottlenecks.

CMS Services offered by ORIENTAL BANK OF COMMERCE

More than 300 cities covering all major Metros and A class cities through our own Branches.

CORRESPONDENT BANK

Over 500 centers covering all other major location in India

REMOTE CENTERS

Covering Rest of India

PRODUCTS OFFERED COLLECTION SERVICES

• Local Cheques.
• Outstation Cheques.

PAYMENT SERVICES

• Dividend/Interest /Refund (DW/IW/RO)

LIQUIDITY MANAGEMENT

• Ensure requisite balances in multiple accounts with our Bank.

29
PAYMENT SERVICES

• Payment of Dividend interim or final at par to shareholders

• Payment of interest on Debentures, Fixed Deposits or other deposits at par to
depositors
• Payment by of refund orders in respect of excess subscription etc
• Payment of Salary, Incentive, Bonus etc. to customer’s staff
• Payment to vendors , sub contractors etc.
• Printing and dispatch of
o Dividend warrants.
o Interest warrants.
• Providing necessary periodical MIS supports.

Benefits to the customers

• Convenience of fund disbursement.

• Funds to be provided just a few days before disbursement.
• Cheque payable at par facility.
• Cost savings.
• Optimizes human resource.
• Online information regarding Instrument status.
• No headaches

BIBLIOGRAPHY

30
Website:
www.obcindia.co.in
www.google.com
www.moneycontrol.com
www.investpedia.com

BROCHURES
ANNUAL REPORT AND GREEN PAGE

Magazines and Newspaper :

1. Business world
2. Business today
3. Business & economy
4. Economic times

31