Project by Brincy

OF BANKING INDUSTRY
WITH REFERENCE
TO
SOUTH INDIAN BANK

Coimbatore
Project Report Submitted in Partial Fulfilment
of the Requirement for the
Award of the degree of
MASTER OF BUSINESS ADMINISTRATION
of Mahatma Gandhi University
2008-2010
Submitted by:
Brincy Sunny
(MBA08A-16)
Under the guidance of

Sanil Kumar V.K
DC SCHOOL OF MANAGEMENT TECHNOLOGY

Pullikkanam, Vagamon
2009
DECLARATION
I undersigned here by declare that the project report titled

“Project Report on Analysis of Deposits of Banking
Industry conducted at South Indian Bank.”, is a record of
independent project work carried out by me under the
supervision and guidance of Mr.Sanil Kumar V.K,
Lecturer, Department of Management Studies, DCSMAT,
Idukki.
I also declare that this has not been
previously submitted for the award of any degree, diploma
or other similar title.
PLACE: Coimbatore Brincy Sunny

DATE:
ACKNOWLEDGEMENT
At the outset, I take this opportunity to thank God Almighty,
without whose unseen guidance I could ever have embarked upon and
completed the work.
I take this opportunity to express my sincere thanks to Mr.Sanil

Kumar V.K, faculty of DCSMAT for giving me the opportunity to under
take this internship work.Words can hardly express my gratitude to
Mr.Nandakumar.V, Manager, SIB, for allowing me to do my project
work at this esteemed organization.
I express my genuine sentiments of gratitude to my parents,

teachers and friends for their moral support and encouragement throughout
my work.
I am greatly indebted to Mr. Nikhil and Ms.Sheeja,
Project Guide from SIB for their wholehearted support and guidance during
the collection of the required data and its analysis.Last, not the least I convey
my sincere gratefulness to Ms.Sreeshma and Mrs.Kochu Mary, Clerk for
the support and assistance given by them to complete this task without
which I won’t have succeeded in this task.
Date: Brincy Sunny

Place: Coimbatore
CHAPTER NO. CHAPTER TITLE
1. Introduction
Objectives of the study
Need & Scope of study
Limitations of the study
2. a) Industry Profile
b) Corporate Profile
c) Branch Profile
3. Various accounts &deposits

4. Analysis
a) Customer preference
b) Current scenario
5 Conclusion
Bibliography
Annexure
CHAPTER: 1
INTRODUCTION
Bank may be defined as a financial institution which is
engaged in the business of keeping money for savings and
checking accounts or for exchange or for issuing loans and credit
etc. A set of services intended for private customers and
characterized by a higher quality than the services offered to retail
customers.Based on the notion of tailor-made services, it aims to
offer advice on investment, inheritance plans and provide active
support for general transactions and the resolution of asset-related
problems.
The essential function of a bank is to provide services

related to the storing of deposits and the extending of credit.Basic
function may include Credit collection, Issuer of banking notes,
Depositor of money and lending loans.
Now a days banking is not in its traditional way , with the

advancement of technology its focusing on more comfort of
customer providing services such as: online banking,investment
banking, electronic banking, internet banking, pc banking /mobile
banking, e-banking.
The importance of banking sector is immense in the

progress and prosperity of any State or country. The economic
progress and prosperity comes from the well-rounded development
and an impeccable banking management.
Banks in general, governmental and private, have eased our

financial transactions, security, and facilitated the funding for
establishing a business or industry.
OBJECTIVES OF THE STUDY
Primary objective:
 To find out why demand for deposits reduced now a days
Secondary objectives:
 To study about different types of deposits.
 To find out the performance of SIB among major players in

Banking industry.
 To find out which type of deposits hold by customer now and

its reason.
NEED FOR THE STUDY
Banking Industry in India is always uncertain. Anything

can happen in that industry. Atleast a small economie change can
affect this industry. Now a days demand for deposits are reduced
incremently. There is a trend to withdraw deposits by
depositholder and try to invest in other sectors. That thing
provoked me to conduct a study on that.
SCOPE OF THE STUDY

 Demand fo deposits are reduced.
 Interest rate are volatile..
 As the same information which are collected through this

project will be very much useful to the new investor coming in
future period and making good decisions to invest fund in
deposits which have better opportunity.
LIMITATIONS OF THE STUDY
 Almost analysis is based on figures drawn from publications

and websites.
 Time was a major limitation. The study has to be conducted

within a period of one month.
 Since the study was in the month of May & June, the latest
data regarding some matter were not available
 Only one reason were taken for the study.
 Study is time bounded.
 The data which are used in the study are mostly collected
from secondary sources.
INDUSTRY PROFILE
Banking in India originated in the last
decades of the 18th century. The oldest bank in existence in
India is the State Bank of India, a government-owned bank
that traces its origins back to June 1806 and that is the
largest commercial bank in the country. Central banking is
the responsibility of the Reserve Bank of India, which in
1935 formally took over these responsibilities from the then
Imperial Bank of India, relegating it to commercial banking
functions. After India's independence in 1947, the Reserve
Bank was nationalized and given broader powers. In 1969
the government nationalized the 14 largest commercial
banks; the government nationalized the six next largest in
1980.
Currently, India has 88 scheduled commercial
banks (SCBs) - 27 public sector banks (that is with the
Government of India holding a stake), 31 private banks
(these do not have government stake; they may be publicly
listed and traded on stock exchanges) and 38 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.
Functions of banks
Commercial banks engages in the following activities:

• accepting money on term deposit
• lending money by overdraft, installment loan, or other
means
• providing documentary and standby letter of credit,
guarantees, performance bonds, securities
underwriting commitments and other forms of off
balance sheet exposures
• safekeeping of documents and other items in safe
deposit boxes
• sale, distribution or brokerage, with or without advice,
of insurance, unit trusts and similar financial products
as a “financial supermarket”
• traditionally, large commercial banks also underwrite
bonds, and make markets in currency, interest rates,
and credit-related securities, but today large
commercial banks usually have an investment bank
arm that is involved in the mentioned activities.
• processing of payments by way of telegraphic transfer,
EFTPOS, internet banking, or other means
• issuing bank drafts and bank cheques
CORPORATE PROFILE
SOUTH INDIAN BANK

One of the earliest banks in South India,
"South Indian Bank" came into being during the Swadeshi
movement . The establishment of the bank was the
fulfillment of the dreams of a group of enterprising
men(mainly 44 persons) who joined together at Thrissur, a
major town (now known as the Cultural Capital of Kerala),
in the erstwhile State of Cochin.
SIB was registered as a private Limited
Company under the companies Act of 1913 and
commenced business on 29-01-1929 at Round South,
Thrissur. The South Indian Bank Ltd., was formed by a
group of 44 enterprising men of Thrissur who contributed
Rs.500/- each to the initial paid up capital of Rs.22,000/-.
Their main objective was to serve the merchant community
of Thrissur by freeing them from the clutches of the money
lenders who charged exorbitant rates of interest.
It mainly aims to provide for the people a
safe, efficient and service oriented repository of savings of
the community on one hand. And to free the business
community from the clutches of greedy money lenders on
the other by providing need based credit at reasonable rates
of interest.
Translating the vision of the founding fathers as

its corporate mission, the bank has during its long sojourn
been able to project itself as a vibrant, fast growing, service
oriented and trend setting financial intermediary.
EXPANSION PROGRAMME or POLICY OF

THE BANK
The Bank has taken long strides in its expansion

programme and with 500 branches and 26 extension
counters, it has struck its roots in 23 States and Union
Territories. The Bank has an ATM network at 225 centres.
During the year under review, the Bank opened 25 new
branches, upgraded 8 extension counters and also opened
50 ATMs.
A new Regional Office (RO) at Kolkata started
functioning from February 2008 and leveraging on it, Bank
intends to take up expansion programmes in the hitherto
unrepresented North Eastern States of Arunachal Pradesh,
Manipur, Meghalaya, Tripura, etc. Another RO has
recently been opened at Hyderabad, which will accelerate
the business growth in Andhra Pradesh, where Bank is
already having a good business volume.
The Bank already holds licence to open 15 new
branches and plans to open 30 branches in the current
financial year.
Milestones
• The First among the private sector banks in
Kerala to become a scheduled bank in 1946
under the RBI Act.
• The First bank in the private sector in India to
open a Currency Chest on behalf of the RBI in
April 1992.
• The First private sector bank to open a NRI
branch in November 1992.
• The First bank in Kerala to develop an in-
house, a fully integrated branch automation
software in addition to the in-house partial
automation solution operational since 1992.
• The First bank in the private sector to start an
Industrial Finance Branch in March 1993.
• The First among the private sector banks in
Kerala to open an "Overseas Branch" to cater
exclusively to the export and import business
in June 1993.
• The first private sector bank from India to
provide managerial support to an Exchange
house in middle east.
• The First Kerala based bank to implement
Core Banking System.
• The Third largest branch network among
Private Sector banks, in India, with all its
branches under Core banking System.
Presently:-
}---ING Group tie up with SIB:
ING Life, part of the ING Group, the world’s largest

financial services provider today announced a tie-up
with South Indian Bank, one of the earliest banks in
South India to collect insurance policy renewal
payments.Customers of ING Life can now pay their
policy renewal premium at any of the 530 South Indian
Bank branches spread across the country. The tie-up
has added significant strength to ING Life’s service
backbone.
}--- All-women branch launched by South Indian Bank
On the occasion of International Women's Day, private
sector South Indian Bank (SIB) launched an "all-women"
branch in Thrissur, the Cultural Capital of Kerala.
"All women" branch implies that all the employees
working in the branch would be women. The branch was
formally inaugurated by the wife of noted film actor
Innocent, Alice Innocent on March 8th.
The branch will not only be "all-lady managed branch" but
also extend advice and personal guidance to women on
inculcating the saving habits.
}--- South Indian Bank (SIB) Launches "Paperless Flow"
Of The Corporate Loan Sanctioning Process For The
First Time In The Banking Industry in India
FUNCTIONAL DEPARTMENTS OF HEAD OFFICE
Administrative Dept headed by General Manager

Credit Sanctions headed by Chief General Manager
Credit Recovery and Monitoring headed by Deputy General
Manager or general Manager
Legal Dept headed by Deputy GM
Staff Training College headed by Asst. General Manager
Personnel Dept headed by Deputy General Manager
Inspection Dept headed by Deputy General Manager
Planning and Development Dept headed by Deputy General
Manager
Marketing Dept headed by Deputy General Manager
Corporate Financial Management(CFM) headed by Deputy GM
Integrated Risk Management Dept(IRMD) headed by General
Manager
Treasury Dept headed by General Manager
Dept of Information and communication Technology headed by
Deputy GM
International Banking Division headed by Deputy GM
Secretarial Dept headed by Company Secretary
Awards and Recognition
Award for the best bank in asset quality among all

private sector banks in India
The best “Asian Banking Web Site” award from Asian

Banking & Finance Magazine
South Indian Bank Bags Special Award from IDRBT
for Banking Technology Excellence
BRAND IMAGE
The incorporation of the new logo on

the Bank's site as well as on the electronic media has
helped to attract the youth into the Bank and thereby
substantially improve the savings deposit base.
Bank's website, www.southindianbank.com, is also
redesigned during the year to make it more
communicative, informative and educative to the
visitors.
BRANCH PROFILE
South Indian Bank , Coimbatore branch started as an
extension counter of Gandipuram branch. At that time only deposit
function take place , no withdrawl. Main purpose of opening this
extension counter was to serve their main customers need namely
CMS school,Ganapathy.So they opened this counter within school
compound.They had 5 staff initially namely
1 manager,
1 assistant manager,
2 clerk and
1 substaff.
5 years after commencement,it restructured as branch

on November 2000. At that time total staff strength raised to 10
1 Manager
3 Assistant Manager under cash,advance and gold
5 Clerk under SB,clearing,deposit,cash and advance
1 Sub staff
ACCOUNTS
&
DEPOSIT SCHEMES
South Indian Bank performs mainly 3 functions
namely Personal , NRI and Business banking. Under
this 3 functions bank provides different kinds of products and
services. They are mainly as follows:-
Accounts and Deposits

Loans
Money transactions
Mutual fund
Insurance
News
Value added services
* PERSONAL BANKING *
Accounts and Deposit:-

SIB invite people to begin a relationship with them.
Opening an account with them would be a window to "experience
next generation banking". With all their branches networked under
Core Banking System, SIB assure the latest product offerings, and
value added services. Main offers are,
Savings Account - For routing your personal cash flow
Term Deposits - For high returns on your investments
I) Savings Account:- A Savings Account with SIB allows

you to route all your personal financial transactions in a secure and
convenient way. With the power of technology based value added
services, you are never away from your Savings Account. SIB
have different types of Savings Accounts to suit your exact need.
1) Regular Savings
General Features
• Accounts can be opened in joint names of family members

• Helps you and your family to accumulate savings
• Cheques, Drafts, Interest warrants, Dividend Warrants etc.
in Indian rupees and foreign currencies can be collected
and credited
• Liberal withdrawal facilities
• No Income tax deduction at source on interest
• Standing instruction for remittance of insurance premium,
rent and similar payments carried out
• Minimum balance held in the account between the 10th
and the end of the month is eligible for interest.
• Nomination facility available
How to open an account
• Download the application form(from the link provided

below)
• Fill in the details and sign the form
• Proper Introduction (you may contact nearest branch for
more details)
• You may bring the filled up form, two passport-size
photographs and documents like Passport/Ration
card/Voter's card/PAN card as proof of address to our
branch.
• You may register for the value-added services by filling
up the respective forms
2) Privilege Savings
South Indian Bank's privilege savings account offers the customer

multiple advantages over the Regular Savings Account.
Features (in brief)
• Accounts can be opened in joint names

• Complete Any Branch Banking Facility
• Payable at Par Cheques
• International ATM cum Debit Card
• Nomination facility available
How to opt for Privilege Facility in your Savings Account
• If you are an existing Savings Account holder, you may

download the Application form from the link provided
below, fill the same, sign and submit to your branch to
convert your Savings Account to a Privilege Account.
3) Group Salary Savings Account
South Indian Bank's Group Salary Savings Account (GSSA) is for

the employees of various business / service enterprises.This
scheme offers multiple advantages over and above a regular
savings account, FREE of Charges!
Features
• Available In 3 Categories To Suit The Requirements Of

Every Employee
• FREE Any Branch Banking Facilities.
• FREE Fund Transfer Facilities.
• No Minimum Balance Stipulations.
• No Charges For Not Maintaining Minimum Balance.
• FREE Global ATM Cum Debit Card With Out AMC
Charges.
• FREE Usage Of Other Bank's Atms In India.
• FREE Internet & Mobile Banking facilities.
4) Junior Savings
With a mission to impart ‘Savings Habit’ among students South

Indian Bank has come up with this product named ‘SIB JUNIOR ’.
This product is an SB account exclusively for students.
• Students having completed 12 years of age with an upper

age limit of 23 years are eligible to open a SB account
with any of our branches.
• Introduction from the Principal / Head Master / HOD &
Photo Identity Card are sufficient for opening such an
account. Usual introduction is acceptable.
• SB account may be opened at least with a minimum cash
remittance of Rs.10/-. However, a minimum balance of the
a/c is Rs 150/-, has to be maintained within a period of 3
months.
• Free cheque books can be issued and free Internet based
fund transfer may be allowed when the account holder
attains the age of majority (18 years) and also by keeping
a quarterly average balance of Rs.1000/-. Penalty for non
maintenance of minimum balance will be applicable in
such accounts (Rs.250/- + ST per quarter as on date).
• Free ATM cum Global Debit Card: ATM cum Global
Debit Card will be issued free of cost.
• Parents can open an ABB account with any of our
Branches for easy fund transfer.
• Free fund transfer will be permitted from Parents Account
to SIB Junior Account.
• Bank may consider Education Loans to eligible students .
5) SARAL Savings
Feature
• Eligibility : Individuals in their own name or in joint names

of family members
• Branches authorized to open the accounts : Branches
authorized to open the accounts
• KYC Norms : Simplified norms are applicable. Introduction
from another account holder who has been subjected to full
KYC procedure. The introducer's account with the bank
should be atleast six months old and should show
satisfactory transactions. Photograph of the customer who
proposes to open the account and also his address needs to
be certified by the introducer
Or other documents like Passport/Ration Card/Voter's
card/PAN card as to the identity and address of the customer
to the satisfaction of the bank.
• Minimum balance for opening the account : Rs.10/- (Rupees

ten only)
• No. of Withdrawls : 20 per half year
• Minors' Account : Permitted
• Issue of Cheque books : One cheque book free of cost

• Internet Banking/Mobile banking : No
• Immediate credit of out station cheques ; No

• Collection of outstation cheques ; Permitted. Usual
collection charges applicable
• Conversion to regular SB accounts : Permitted

• Other conditions : All other terms and conditions relating to
Savings Bank accounts are applicable
6) Youth Plus Savings
In a fast developing country like India, the aspirations of the youth

are sky high. The young population of our country is the strength
of our country. The recent changes in our corporate identity are in
tune with the aspirations of today’s youth. The Bank has dedicated
this year for youth empowerment.
Among various activities, a powerful savings bank product is

designed exclusively for the youth. South Indian Bank as a tech
savvy bank has powered this product with the best technology
features.
The bank with experienced front office staff with the support of
latest technology is inviting every Indian youth to join hands with
us to enjoy a new banking experience
Features
• Admit age: 20 to 35 years Minimum balance Rs.1,000/-
• Free Mobile Banking Service
• Free Personalised Cheque Book
• Free Usage Of Our Atm Net Work
• Free Depository Account Opening
• Free Any Branch Banking Facility
• Free For Life International Credit Card
• Free International Atm Cum Debit Card
• Free Internet Banking Facility & Fund Transfer
• Free Subscription Of Student’s Economic Forum By E-
Mail
• Preference For Project Work At Bank, Subject To
Availability Of Seats
How to opt for Youth Plus Facility in your Savings Account
• If you are an existing Savings Account holder, you may

fill Application form , sign and submit it to your branch to
convert your Savings Account to a Youth Plus Account.
• If you are a new customer, you may contact our branch
for opening a Savings Account. You may request for
Youth Plus facilities while opening the account.
II) Term Deposits :- Now you can earn a higher income on

your surplus funds by investing in a deposit scheme of your choice.
SIB provide security, trust and competitive rate of interest. And
also have schemes which combine good returns with easy liquidity.
Salient features are,
• Nomination facility is available in respect of all deposit

accounts
• Interest upto Rs.10000/- per annum is exempted from TDS
• Loans are available on deposit accounts upto 90% of deposit
amount
1) Kalpakanidhi
Features
• Reinvestment plan with interest-compounded quarterly

• Fixed deposit for periods ranging from 6 months to 10
years
• Compounding of interest quarterly - yields higher
effective returns
• Provision for automatic renewal at maturity
If you already have a SB or Current account with SIB
• Bring the application form from branch

• Filled application forms with SB/CA account numbers
mentioned in the column for introduction is required and
no other documnets are required
If you do not have SB or Current account with SIB
• Bring the application form from branch

• Proper Introduction
branch.
You may register for the value-added services by filling up the
respective forms
2)SIB Flexi Deposit
General Features
• A fixed deposit linked to your Savings Bank account.

• Fixed Deposit maintained in units of Rs.1000/-
• You can link any fresh flexi deposit to your SB account
• Fixed Deposit is broken automatically on a Last In-First
Out basis and minimum units transferred to SB a/c when
the SB balance falls in deficit.
• Interest is paid out every quarter
• TDS applicable
• Bring the application form from bank


photographs and other relevant documents (as instructed
by the Branch Manager) to our branch.
• You may register for the value-added services by filling
up the respective forms
3)SIB Tax Gain 2006
Government of India vide reference No.203/2006 dated 28.07.2006

has notified the scheme “Bank Term Deposit Scheme-2006”
effective from 01.04.2006, which was announced in the recent
Finance Budget. For unique identity, we have named the deposit
scheme as “SIB-TAX GAIN –2006 ".
Features
1.An amount up to Rs.1 lac ( Minimum Rs.100/- and maximum

Rs.1 lac in multiples of Rs.100/-) deposited in the bank as Fixed /
under Compound interest scheme for a period of 5 years is eligible
to be exempted from Income Tax under Section 80C of IT Act,
1961.
2. Amount deposited in the name of individual, joint (first name

holder) or HUF (Karta) not exceeding Rs.1 lac in a financial year
is eligible for tax exemption.
3. Though nomination can be registered, NO nomination shall be

made in respect of a term deposit applied for and held by or on
behalf of a minor.
4. The rate of interest will be the rate of interest applicable for

Fixed deposits with maturity 5 years. Additional rate for senior
citizens will be applicable to this deposit also.
5. Deposit can be transferred from branch to branch but not
between banks.
6. This deposit shall not be pledged to secure loan or as security to

any other asset.
7. This deposit shall not be encashed before the expiry of 5 years

from the date of its receipt.
8. Interest on this deposit shall be liable to Income Tax on the basis

of annual accrual or receipt depending up on the simple interest or
compound interest scheme and tax on such interest shall be
deducted as usual.
Interest rate is subject to change without notice at the discretion

of the Bank.
4) Fast Cash Deposit
General Features
• Ultra short fixed deposits which allow automatic renewal

• Deposit for 30, 46 or 91 days with cumulative or non-
cumulative option
• Partial withdrawal permitted while balance continues to
earn interest
• Freedom from visiting the bank for renewals-Automatic
renewal facility
• Rate of interest as applicable for fixed deposits of like
duration


5) Fixed Deposits
Features
• Simple interest will be paid quarterly.

• Monthly interest payout scheme is also available at
discounted rate.
• For Short/long term investment
• Deposits can be made for period ranging from 15 days to
10 years.
• Interest can be withdrawn periodically or transferred to
other accounts as per instructions
• Can give auto-renewal instructions
• TDS applicable

no other documents are required
If you do not have SB or Current account with our bank

• Proper Introduction (you may contact nearest branch for
more details)
branch.
6) Recurring Deposit
Features
• Promotes regular savings - meant for fixed

income/salaried group
• Fixed monthly installment for period ranging from 12
months to 120 months
• No income tax deduction at source on interest
• High yield


branch.
* NRI BANKING *
Accounts and Deposit:-
Rich experience serving NRIs, have helped SIB in creating

products and services that suit your exact needs. Their wide range
of accounts and technology based value added services. presents a
great opportunity for you to begin a relationship with them. In
addition to Savings Accounts, under NRE, NRO category, they
also offer high return deposit schemes, in Indian Rupees
(NRE/NRO) and Foreign Currency (FCNR/RFC). They invite you
to open an account with them.
A) NRE Rupee Account
Features
• Accounts can be in the form of Savings or Term Deposit.

• Joint accounts are permitted.
• Account can be opened by direct remittance from abroad,
transfer from existing NRE, FCNR(B) accounts or with
foreign currency note, travellers cheque tendered
personally by NRIs during their visit to India.
• Repatriation of credit balance permitted.
• Balance is exempt from wealth tax and interest earned is
exempt from Income Tax.
• Nomination facility is available
Documents Required for Opening an NRI account
• Application form duly filled and signed

• Copy of latest valid passport
• Proof of address and residence like copy of statement of
bank account maintained abroad or a certificate from your
employer abroad
• Two passport size photographs
• Initial remittance by way of DD issued by a foreign bank
or an exchange company abroad or cheque drawn on a
foreign bank in your country of residence
A-I) Savings Account
A Savings Account with SIB allows you to route all your personal
financial transactions in a secure and convenient way.
• Can be opened with
• direct remittance from abroad

• transfer from existing NRE, FCNR(B) accounts
• foreign currency note, travellers cheque tendered
• Residents in India can be authorised to operate the
account for local payments.
• Standing instruction for remittance of insurance
premium, rent and similar payments carried out
• Minimum balance held in the account between the
10th and the end of the month is eligible for interest.
• Value Added Services such as Global ATM-cum-
Debit Card, Internet Banking, Mobile Banking etc.
offered Repatriation of credit balance permitted.
Balance is exempt from wealth tax and interest earned is

You may choose one of the following types of Savings

Accounts. :-
1) SB NRE
Special Features
• Monthly average balance of Rs 1000

• Can avail cheque book that can be used locally.
General Features
• Can receive remittances made from abroad (Online/DD)

• Can avail value added services such as,
o Global ATM-cum-Debit Card

o Internet Banking Service
o Mobile Banking Service


• Fill in the details, sign the form and send it to any of our
Branches with the following:
o Two copies of passport size photographs

o One Photocopy of passport, and
o your first remittance (if online, it can be made after
account is opened)
2) SB NRE Privilege
Special Features
• Monthly average balance of Rs 1000 onwards

• Payable at Par Cheques that can be presented in any of our
branches
• Anywhere Banking Facility
General Features
• Can receive remittances made from abroad (Online/DD)

o Global ATM-cum-Debit Card

o Internet Banking Service
o Mobile Banking Service

How to opt for Privilege Facility in your Savings Account
• If you are an existing NRE Savings Account

holder, you may download the Application form from the
link provided below, fill the same, sign and submit to your
branch to convert your Savings Account to a Privilege
Account.
If you are a new customer, you may contact our
nearest branch for opening a NRE Savings Account. You may
request for Privilege facilities while opening the account
•
•
3)NRE SB Privilege Diamond Account
SIB bank launched a new NRE SB Privilege Diamond Account

exclusively for NRI customers. We are offering many facilities and
services like
• Free and Unlimited Any branch banking

• Free and unlimited purchase of Draft/ Payment orders
• Free and unlimited fund transfer to any other bank
accounts in India
• Free international ATM- cum- Debit card
• Free withdrawal of cash through other banks ATM's in
India
• Free utility payments and E-commerce facility
• Free SMS facility
All these features for a monthly minimum average NRE SB

balance of Rs. 50,000/-
4)Youth Plus Savings
In a fast developing country like India, the aspirations of

the youth are sky high. The young population of our country is the
strength of our country. The recent changes in our corporate
identity are in tune with the aspirations of today’s youth. The Bank
has dedicated this year for youth empowerment.
Among various activities, a powerful savings bank product is
designed exclusively for the youth. South Indian Bank as a tech
savvy bank has powered this product with the best technology
features.The bank with experienced front office staff with the
support of latest technology is inviting every Indian youth to join
hands with us to enjoy a new banking experience.
Features
• Admit age: 20 to 35 years Minimum balance Rs.1,000/-

• Free Mobile Banking Service
• Free Personalised Cheque Book
• Free Usage Of Our Atm Net Work
• Free Depository Account Opening
• Free Any Branch Banking Facility
• Free For Life International Credit Card
• Free International Atm Cum Debit Card
• Free Internet Banking Facility & Fund Transfer
• Free Subscription Of Student’s Economic Forum By E-
Mail
• Preference for Project work at bank, subject to availability
of seats
How to opt for Youth Plus Facility in your Savings Account
• If you are an existing NRE Savings Account holder, you may

convert your Savings Account to a Youth Plus Account.
• If you are a new customer, you may contact our nearest
branch for opening a NRE Savings Account. You may
request for Youth Plus facilities while opening the account.
A-II) Term Deposits
A NRE Term Deposit allows you to earn high rate of interest on

your rupee investments
• Can be opened with
• direct remittance from abroad

• transfer from existing NRE, FCNR(B) accounts
• foreign currency note, travellers cheque tendered
• Repatriation of credit balance permitted.
• Balance is exempt from wealth tax and interest
earned is exempt from Income Tax.
Loans can be availed against security of NRE Term Deposit.
1)Kalpakanidhi
Special Features

• Fixed deposit for periods ranging from 1 year to 10 years
effective returns
General Features
• Principal and Interest can be repatriated

Loans can be availed against security of NRE Term Deposit
2)Flexi Deposit
Special Features
• A fixed deposit linked to your Savings Account.

• Minimum period of deposit is 1 year and maximum is 10
years
Out basis and minimum units transferred to
Savings Account when the Savings Account has a deficit.
General Features

Balance is exempt from wealth tax and interest earned is

3)Fixed Deposits
Special Features

• Monthly interest pay out is also available at discounted
rate.
• Deposits can be made for period ranging from 1 year to 10
years
other accounts as per your instructions compliant to the
rules and regulations.
General Features

Loans can be availed against security of NRE Term Deposit.
4)Recurring Deposits
Special Features
• Remittance as monthly instalments over a period of time.

• Amount remitted plus cumulative interest will be paid on
Maturity date.
• Monthly fixed savings promotes regular savings - meant
for fixed income/salaried group
General Features

Balance is exempt from wealth tax and interest earned is exempt

from Income Tax.
B ) NRO Rupee Account
• Accounts maintained in Indian Rupees for routing

bonafide local remittance like rent.
• Interest earned in the account is subject to Indian Income
Tax.
• Account can be maintained in the form of Savings and
Term Deposits.
• Restricted repatriation is offered.
B-I) Savings Account
• A NRO Savings Account helps you to route your

domestic earnings.
Tax.
• Restricted repatriation is offered
1)SB NRO
Special Features

• Can avail cheque book that can be used locally.
General Features
Tax.
• Global ATM-cum-Debit Card
• Internet Banking Service
• Mobile Banking Service

NRI Branches with the following:
o -Two copies of passport size photographs

o -One Photocopy of passport, and your first remittance
2)SB NRO Privilege
SIB NRO privilege offers the customer multiple advantages over

the Regular Savings Account.
Special Features

• Anywhere Banking Facility
• Issuance of a Photo Identity card that doubles up as debit
card (as prescribed) for all account holders.
• Can avail payable at par cheque book that can be
presented in any of our branches
General Features

Tax.
o -Global ATM-cum-Debit Card

o -Internet Banking Service
o -Mobile Banking Service


NRI Branches with the following:
o -Two copies of passport size photographs

o -One Photocopy of passport
o -Your first remittance
B-II)Term Deposit
SIB offer high returns on your NRO term deposits.So Invest your
funds in NRO term deposits, and get the maximum yield on your
hard-earned money.
1)Kalpakanidhi
Special Features

• Fixed deposit for periods ranging from 6 months to 10
years
effective returns
General Features

Tax.
2)Flexi Deposit
Special Features
• A fixed deposit linked to your Savings Bank account.

Out basis and minimum units transferred to SB a/c when
the SB balance is in deficit.
General Features

Tax.
3)Fast Cash Deposit
Special Features
• Ultra short fixed deposits which allow automatic renewal

and also withdrawal of part of the deposit
• Deposit for 30, 46 or 91 days with cumulative or non-
cumulative option
• Partial withdrawal permitted while balance continues to
earn interest
• Freedom from visiting the bank for renewals-Automatic
renewal facility
• Rate of interest as applicable for fixed deposits of like
duration
General Features

Tax.
4)Fixed Deposits
Special Features

• Monthly interest scheme is also available at discounted
rate.
• Deposits can be made for period ranging from 15 days to
10 years.
General Features

Tax.
• Restricted repatriation is offered
5)Recurring Deposits
Special Features
• Remittance as monthly instalments over a period of time.

Amount remitted plus interest will be paid on Maturity
date.
Monthly fixed savings
• Promotes regular savings - meant for fixed
income/salaried group
• No income tax deduction at source on interest
General Features
Tax.
C)Foreign Currency Deposits
SIB offer you protection against currency exchange rate

fluctuations, through our Foreign currency denominated
accounts.You earn high returns for different maturities.
• Accounts are maintained in foreign currencies

• High rate of returns
C-I) Term Deposits- FCNR
Our Foreign Currency Deposits, have always been offering high

rate of returns.
• Foreign Currency accounts in GBP (British Pound), USD

(American Dollar) and EURO may be maintained.
• Accounts can be opened for various maturities
• The investment is insulated against exchange rate
fluctuations.
• Balance and interest is repatriable.
• Rupee loan can be availed against deposits.
1)Kalpakanidhi
Special Features
• Reinvestment plan with interest-compounded half-yearly.

• Fixed deposit for periods ranging from above 12 months
to 5 years
• Compounding of interest yields higher effective returns
General Features

fluctuations.
2)Platinum Kalpakanidhi
A new FCNR deposit scheme in US Dollar, Euro and GBP, with

one year forward booking facility.
1. Eligible Persons : Non-Resident Indians
2. Denominated Currencies : US Dollar, Pound Sterling, Euro
3. Minimum Amount of deposit : 5000 units in each currency
4. Period of deposit : One year and One day
5. Forward booking : Depositor to cover the deposit under a

Forward booking for the deposit period by a written request.
Nominal forward booking charges to be paid.
6. Premature closure of deposit : In case of premature closure of
the deposit, the cost of cancellation/charges of the forward contract
will be recovered from the depositor.
7. Loans against the deposit : No loan is permissible against such

deposit
8. Payment on the Due Date : The maturity proceeds of the

deposit will be converted in to Indian Rupees at the contracted
forward rate and the Rupee amount will be credited to the
depositors NRE/NRO SB account.
9. Roll over of the deposit : Roll over of the deposit under

FCNR/FCNR PLATINUM will be allowed.
SIB are presenting this deposit product to NRIs, to avail an

alternate deposit option, as the denominated currencies will
provide an additional return by way of forward premium prevailing
on the date of deposit in addition to the usual FCNR interest. As on
date, the effective return under this scheme is more than the
FCNR/NRE deposits and the benefit of the scheme is depending on
the forward premium available on the date of deposit.
3) Fixed Deposits
Special Features

years.
General Features
fluctuations.
C-II) RFC Account
A person of Indian Origin who returns to India for permanent

settlement after a stay of minimum period of one year abroad is
eligible to open RESIDENT FOREIGN CURRENCY
(RFC) account.
• Accounts can be maintained in USD, GBP and EURO.

• Assets acquired or held at the time of return are eligible
for credit to RFC account. For Example: Funds in bank
account outside India, Income such as dividend, interest,
profit earned on assets abroad, sale proceeds of eligible
assets, pension and other monitory benefit received from
outside India arising out of employment taken up abroad,
foreign currency notes, travellers cheques brought to India
at the time of return and balances in NRE/FCNR(B)
accounts.
• The balance can be repatriated or credited to NRE or
FCNR(B) accounts, if the account holder becomes an NRI
subsequently.
• Balance in the accounts can be used for bona fide
expenses like traveling expenses for going abroad,
children’s education abroad etc.
• No loan is available against RFC account.
1)Kalpakanidhi
• Reinvestment plan with interest-compounded half-yearly
• Fixed deposit for periods ranging from above 1 year to 3
years
• Compounding of interest half-yearly - yields higher
effective returns
General Features
• A person of Indian Origin who returns to India for

permanent settlement after a stay of minimum period of
one year abroad is eligible to open RESIDENT FOREIGN
CURRENCY (RFC) account.
for credit to RFC account.
subsequently.
• Balance in the accounts can be used for bona fide
expenses like traveling expenses for going abroad,
children’s education abroad etc.
• Loans are not permitted against RFC account.
3)Fixed Deposits
Special Features

years.
General Features
• A person of Indian Origin who returns to India for
permanent settlement after a stay of minimum period of
one year abroad is eligible to open RESIDENT FOREIGN
CURRENCY (RFC) account.
for credit to RFC account.
subsequently. Balance in the accounts can be used for
bona fide expenses like traveling expenses for going
abroad, children’s education abroad etc.
• Loans are not permitted against RFC account.
* Business Banking *
SIB offer different types of Business Accounts such as Current
Account, Overdrafts(OD), Cash Credits(CC) and Mercantile
Credits. These accounts allow you the convenience of conducting
day-to-day banking operations, in addition to offering working
capital credit requirements.
A) Normal Accounts
SIB offer different types of Business Accounts such as Current

Account, Overdrafts(OD), Cash Credits(CC) and Mercantile
Credits. These accounts allow you the convenience of conducting
day-to-day banking operations, in addition to offering working
capital credit requirements.
A normal business account takes care of your day-to-day financial

activities.
We offer:
• Unlimited transactional facilities
• Cheque Book facility
• Deposit cash to your account from any of our branches
• Make balance inquiries
• Get statement of accounts
• Get Demand Drafts/Banker’s Cheques
• Free Collection of local cheques/demand drafts
• Quick Collection of outstation cheques/demand drafts at a
nominal fee
• Quick money transfer facilities from/to your account
• Bouquet of Value added services offered
B)Premium Accounts
You get the freedom of Any Branch Banking in your

accounts, while opting for a Premium Account. The Premium
account can be a Current Account, Overdraft Account (OD)
or Cash Credit Account (CC).
-In case of Current Accounts, you can choose your Premium

Account category which ranges from a minimum of Rs 5000.
-In case of OD and CC accounts, the minimum eligibility for

Premium Account is a sanctioned overdrawal limit of Rs 2
lac.
In a Premium Account we offer:
• Unlimited transactional facilities

• Payable at par Cheque Book facility
• Complete anywhere banking facilities including cheques,
cash deposit
• Separate Premium Categories such as General, Standard,
Silver, Gold and Platinum which can be chosen as per
your requirement (applicable to Current Accounts)
• Instant Money Transfer facilities
• Balance Inquiries
• Statement of accounts
• Allows instant fund transfer from one account to another
• Get Demand Drafts/Banker’s Cheques
• Collection of local/outstation cheques
• Bouquet of Value Added Services
How to opt for Premium Facility in your Business Account
• If you are an existing Business Account holder, you may

convert your Business Account to a Premium Business
Account
• If you are a new customer, you may contact our nearest
branch for opening a Business Account. You may request
for Premium facilities while opening the account.
CHAPTER: 1
ANALYSIS
ACCORDING to CUSTOMER PREFERENCE
Customers prefer different type of deposits according to their

needs.Some prefer demand deposit, some other prefer current
deposit and so on. Different age group prefer different type of
deposits. They are as follows:-
Students (12-23 years of age):-

They prefer to use SIB junior a/c because it helps to increase
their savings habit. Main reason is that it requires only Rs.10 to
open the account and minimum of Rs.150 has to be maintained.
More over it offers ATM card and cheque facility.
Youth (20-35):-
People within range of 20 to 35 years prefer youth plus
savings and more over bank take this year as year for youth
empowerment.
Senior citizen:-
This range prefer to get fixed income every month without loss
their investment. Usually retired people use fixed deposit, SIB tax
gain 2006 or fixed deposits.
Employees:-
They are regular income earning people. They prefer to invest
fixed amount in fixed intervals usually monthly basis. So they
prefer to use Recurring deposit.
Non residentials :-
They prefer to use NRI banking scheme.
ACCORDING to Current scenario
decreasing interest rate
Now a days demand for deposits diminishing. In my opinion

main reason behind it is change in interest rate. For a long period
there is only a slight change occurs. But during these days it is not
like that. It shows a diminishing pattern . So people are not ready
to make investments in deposits because there are other source to
invest and that source can yield more than that.
bank promote loan schemes
Financial crisis affect banking industry a lot. So they decided to

take a policy of increasing credit facility to customers.
All these are the main things which leads to reduce

use of banking deposit schemes.
CONCLUSION
The Indian banking industry is at the crossroads: on the

one hand, opportunities are emerging in the developed markets,
while on the other, the domestic market is becoming increasingly
challenging one.
Since banking is one of the fastest growing industry, it

was a very fruitful experience to be part of an organization that is
growing at very fast pace . Their integrated, dedicated and sincere
effort is showed in their annual turnover which increases in each
financial year, thereby making them one of the toughest
competitors in the Asian banking industry.
This analysis helped me a lot to know the problems faced
by bank in this scenario and also the effects made by the financial
crisis problem. My domain knowledge has also increased as I was
able to put the theoretical knowledge into practical use.

Project by Brincy

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OF BANKING INDUSTRY

SOUTH INDIAN BANK

Under the guidance of

DC SCHOOL OF MANAGEMENT TECHNOLOGY

I undersigned here by declare that the project report titled

PLACE: Coimbatore Brincy Sunny

I take this opportunity to express my sincere thanks to Mr.Sanil

I express my genuine sentiments of gratitude to my parents,

I am greatly indebted to Mr. Nikhil and Ms.Sheeja,

my sincere gratefulness to Ms.Sreeshma and Mrs.Kochu Mary, Clerk for

which I won’t have succeeded in this task.

Date: Brincy Sunny

3. Various accounts &deposits

The essential function of a bank is to provide services

Now a days banking is not in its traditional way , with the

The importance of banking sector is immense in the

Banks in general, governmental and private, have eased our

 To find out why demand for deposits reduced now a days

 To study about different types of deposits.

 To find out the performance of SIB among major players in

 To find out which type of deposits hold by customer now and

NEED FOR THE STUDY

Banking Industry in India is always uncertain. Anything

SCOPE OF THE STUDY

 Interest rate are volatile..

 As the same information which are collected through this

LIMITATIONS OF THE STUDY

 Almost analysis is based on figures drawn from publications

 Time was a major limitation. The study has to be conducted

 Only one reason were taken for the study.

 Study is time bounded.

Commercial banks engages in the following activities:

SOUTH INDIAN BANK

Translating the vision of the founding fathers as

EXPANSION PROGRAMME or POLICY OF

The Bank has taken long strides in its expansion

ING Life, part of the ING Group, the world’s largest

FUNCTIONAL DEPARTMENTS OF HEAD OFFICE

Administrative Dept headed by General Manager

Award for the best bank in asset quality among all

The best “Asian Banking Web Site” award from Asian

The incorporation of the new logo on

5 years after commencement,it restructured as branch

Accounts and Deposits

Accounts and Deposit:-

I) Savings Account:- A Savings Account with SIB allows

• Accounts can be opened in joint names of family members

How to open an account

• Download the application form(from the link provided

South Indian Bank's privilege savings account offers the customer

Features (in brief)

• Accounts can be opened in joint names

How to opt for Privilege Facility in your Savings Account

• If you are an existing Savings Account holder, you may

3) Group Salary Savings Account

South Indian Bank's Group Salary Savings Account (GSSA) is for

• Available In 3 Categories To Suit The Requirements Of

With a mission to impart ‘Savings Habit’ among students South

• Students having completed 12 years of age with an upper

• Eligibility : Individuals in their own name or in joint names

• Minimum balance for opening the account : Rs.10/- (Rupees

• Issue of Cheque books : One cheque book free of cost