Head office

Star House, C-5,GBlock,Bandra-Kurla Complex,Bandra(east),Mumbai 400 051

Vision - To become the bank of choice for corporate, medium businesses and upmarket retail customers and to provide cost effective developmental banking for small businesses, mass market and rural markets.

Mission-To provide superior, proactive banking services to niche markets globally, while providing cost effective ,responsive services to others in our role as a developmental bank ,and in so doing, meet the requirements of our stakeholders.

Quality policy - Are committed to become the Bank of Choice by providing SUPERIOR, PROACTIVE, INNOVATIVE STATE OF THE ART Banking Services with an attitude of Care and Concern for the customers and Patrons.

Chairman & Managing Director

Shri T. S. Narayanasami - Till 31-05-2009 Shri Alok Kumar Misra - from 05-08-2009 till date

Executive Director
Shri B.A. Prabhakar Shri M. Narendra
EDUCATIONAL QUALIFICATION: SHRI ALOK KUMAR MISRA (CHAIRMAN AND MANAGING DIRECTOR FROM: 5TH AUGUST, 2009) 1) 2) 3) 4) 5) 6) 7) NATIONAL MERIT SCHOLARSHIP HOLDER M.S.c.(STATISTICS)FROM LUCKNOW UNIVERSITY POST GRADUATE DIPLOMA IN PERSONNEL MANAGEMENT CERTIFIED ASSOCIATE OF INDIAN INSTITUTE OF BANKERS (CAIIB) FELLOW CERTIFIED INSTITUTE OF BANKERS OF SCOTLAND (FCIBS) FELLOW OF THE ZAMBIAN INSTITUTE OF BANKERS (FZIB) ASSOCIATE OF AUSTRALASIAN INSTITUTE OF BANKING AND FINANCE (AAIBF) YEAR BANK WORK EXPERIENCE JOINED FROM JAN 1974 BANK OF INDIA 24TH MARCH06 JUN07 FROM 4TH JUN07 FROM 5TH AUG09 -3RD CANARA BANK ORIENTAL BANK COMMERCE BANK OF INDIA OF
JOINED AS PROBATIONARY OFFICER AND WORKED IN VARIOUS CAPACITIES EXECUTIVE DIRECTOR CHAIRMAN & MD CHAIRMAN & MD

WORKED IN VARIOUS CAPACITIES AT BRANCHES & ADMINISTRATIVE OFFICES INCLUDING PLANNING & INTERNATIONAL DIVISION OF THE BANK OF INDIA AND OVERSEAS AT INDO ZAMBIA BANK

History
Bank of India was founded on 7th September, 1906 by a group of eminent businessmen from Mumbai. The Bank was under private ownership and control till July 1969 when it was nationalised along with 13 other banks. Beginning with one office in Mumbai, with a paid-up capital of Rs.50 lakh and 50 employees, the Bank has made a rapid growth over the years and blossomed into a mighty institution with a strong national presence and sizable international operations. In business volume, the Bank occupies a premier position among the nationalised banks. The Bank has 3101 branches in India spread over all states/ union territories including 141 specialised branches. These branches are controlled through 48 Zonal Offices. There are 29 branches/ offices (including three representative offices) abroad. The Bank came out with its maiden public issue in 1997 and follow on Qualified Institutions Placement in February 2008. . Total number of shareholders as on 30/09/2009 is 2,15,790. While firmly adhering to a policy of prudence and caution, the Bank has been in the forefront of introducing various innovative services and systems. Business has been conducted with the successful blend of traditional values and ethics and the most modern infrastructure. The Bank has been the first among the nationalised banks to establish a fully computerised branch and ATM facility at the Mahalaxmi Branch at Mumbai way back in 1989. The Bank is also a Founder Member of SWIFT in India. It pioneered the introduction of the Health Code System in 1982, for evaluating/ rating its credit portfolio. The Bank's association with the capital market goes back to 1921 when it entered into an agreement with the Bombay Stock Exchange (BSE) to manage the BSE Clearing House. It is an association that has blossomed into a joint venture with BSE, called the BOI Shareholding Ltd. to extend depository services to the stock broking community. Bank of India was the first Indian Bank to open a branch outside the country, at London, in 1946, and also the first to open a branch in Europe, Paris in 1974. The Bank has sizable presence abroad, with a network of 29 branches (including five representative office) at key banking and financial centres viz. London, Newyork, Paris, Tokyo, Hong-Kong and Singapore. The international business accounts for around 17.82% of Bank's total business.

Now, Bank Of India, is a Body Corporate constituted under The Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, with its Head Office at Star House, Plot No.C-5, G Block, BandraKurla Complex, Bandra East), Mumbai 400 051. The Bank is doing the business of banking which means the accepting of deposits for the purpose of lending or investment, of deposits of money from the public, repayable on demand or otherwise, and withdrawal by cheque, draft, order or otherwise. In additions to the business of banking Bank is also engaged in other forms of business as contemplated under Sec. 6 (1) of the Banking Regulation Act, 1949.

The names, designations and other particulars of the public Information officers The names and addresses of the Central Public Information Officers and the Appellate Authority designated by the Bank in terms of the Right to Information Act, 2005 is published on Bank's website www.bankofindia.com. The powers and duties of its officers and employees The delegation of powers of various grades of officials is decided by Board of Directors of the Bank. These powers are revised periodically, depending upon the organization's requirement and also Government / RBI guidelines. Whether to sanction a loan or not, is within the absolute discretion of the concerned sanctioning authority of the bank and such discretion is exercised, after taking into consideration the relevant facts, circumstances and on merits of each case. The norms set by the Bank for the discharge of its functions. Head Office decides the rates to be offered by the Bank for the deposits, for different tenures which are displayed in the Bank's website and also at the branches. Regarding the advance, again the Head Office takes a decision on introduction of various loan products and details of which are also available in the website as well as at the branches. Head Office also decides about the rates of interest for various advances which again are available on our website and also at the offices / Branches of the Bank. Bank has its own internal rules and regulations and scheme of delegation that are decided at appropriate level for the smooth functioning of the Bank. Head office also through its internal circulars periodically inform the branches of its new schemes, procedures for implementation, changes occurring in the banking scenario and steps to be taken to move with the developments in the Banking Industry. These are all meant only for internal circulation of Bank A statement of the categories of documents that are held by the Bank or under its control The documents being obtained at the time of lending are available with branches of Bank. A brief description of Bank's procedure of lending is already on its website. Bank otherwise maintains register of share holders and record of proceedings of the Board meeting. The particulars of any arrangement that exists for consultation with, or representation by, the members of the public in relation to the formulation of its policy or implementation thereof Shareholders can raise issues concerning the policies of the Bank in the Annual General Meetings of the Bank. Bank also publishes its quarterly and annual results/reports in the Bank's website and in the news papers at the relevant period which would give a general idea about the Bank. a) Management Committee of the Board b) Audit Committee of the Board c) Risk Management Committee d) Share Holders'/Investor's Grievances Committee e) Committee for Customer Service The Public cannot participate in these Committees and the Minutes of the meetings are not accessible to Public since these are confidential in nature.
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COMMITTEES
MANAGEMENT COMMITTEE OF THE BOARD AUDIT COMMITTEE OF THE BOARD RISK MANAGEMENT COMMITTEE SHAREHOLDERS/ INVESTOR'S GRIEVANCES COMMITTEE CUSTOMER SERVICE COMMITTEE

A directory of its officers and employees

The list of Branches and officers posted therein are available with the respective Zones and the Central Public Information Officer of each Zone has the details of employees of the Zone and Branches under it. The names, designations and other particulars of the public Information officers

The monthly remuneration received by each of its officers and employees, including the system of compensation as provided in its regulations The pay scales of employees of the Bank are fixed by IBA in consultation with Government of India, Ministry of Finance, New Delhi. The names, designations and other particulars of the public Information officers The names and addresses of the Central Public Information Officers and the Appellate Authority designated by the Bank in terms of the Right to Information Act, 2005 is already published on Bank's website www.bankofindia.com.

Subsidiaries:
(i) BOI Shareholding Ltd. (ii) Star Union Dai Ichi Life Insurance Company Ltd. (iii) PT Bank Swadesi (iv) BOI Tanzania Ltd.

BOISL

BOI TANZANIA LTD.

SUBSIDIARIES

SUD-LIFE

PT BANK SWADESI

BOI Shareholding Ltd. (BOISL) Bank's association with the Capital Market spans a period of nine decades. The clearing and settlement function of Bombay Stock Exchange (BSE) was being handled by the Bank since 1921.In 1989, Bank set-up "BOI Shareholding Ltd. (BOISL)", joint venture with BSE, to manage the clearing house activities of the Stock Exchange. The Bank is holding 51% of its paid up capital of Rs.2 crore.

The company has been carrying out the rolling and weekly settlements of trades executed by member brokers operating on the Exchange, BOISL is also a Depository Participant (DP) of both the Depositories viz. the National Securities Depository Ltd. (NSDL) and the Central Depository Services (India) Ltd. (CDSL) and provides depository services to the clearing members and investors. BOISL is the first Securities Clearing House in the country to have been awarded the ISO 9001:2000 ISO Certification. BOISL earned a net profit of Rs. 709.27 lacs during 2009-10 as against Rs. 531.93 lacs earned during 2008-09.

PT Bank Swadesi Tbk , Indonesia

During FY 2007-08 the Bank acquired a stake of 76% in PT Bank Swadesi Tbk for a total consideration of Indian Rs.3.77crores. The Bank has three Directors on the Board of PT Bank Swadesi Tbk.

BANK OF INDIA (TANZANIA) LTD Bank of India (Tanzania) Ltd. is a wholly owned subsidiary of the Bank and has commenced operations on 16th June 2008 with first branch at Dar-Es-Salaam. The Bank has three Directors on the Board

Star Union Dai-ichi Life Insurance Company Ltd. BANK OF INDIA+ UNION BANK OF INDIA+ DAI-ICHI MUTUAL LIFE INSURANCE CO.

BOI(51%)

UNION BANK OF INDIA(23%)

DAI-ICHI (26%)

Bank of India, Union Bank of India and Dai-Ichi Mutual Life Insurance Company, Japan have formed Star Union Dai-Ichi Life Insurance Company to take advantage of the growing insurance market and to provide quality assured insurance to its clients spread across the length and breadth of the country. The company has commenced insurance business since February 2009. BOI holds 51% in the Companys paid up Capital of Rs.250.00crores. The Bank holds 51% stake in the company whereas Union Bank holds 23% stake and Dai-ichi Mutual Life Insurance Company, Japan holds 26%. In terms of the Joint Venture Agreement the Bank has proposed transfer its 3% stake in favour of Union Bank.

Star Union Dai-ichi Life Insurance Co. Ltd. (SUD Life), a joint venture between Bank of India, Union Bank of India and the Dai-ichi Mutual Life Insurance Company, has added more products to its existing product portfolio by developing several new products to meet various needs of the insuring public. The company unveiled its six new policies under Group and Individual Insurance category and also announced strengthening its IT structure with revamp of its existing Corporate website, and launch of three new additional portals.

Securities Trading Corporation of India Ltd. (STCI)

STCI Ltd. was one of the leading Primary Dealers in the country , It was established in 1999 with the objectives of widening the gilt and other debt security market through development of a vibrant secondary market. Bank of India with 29.96% holding is the single largest stakeholder in STCI having Paid Up Capital of Rs.380 crore. The Company is an associate company of the Bank in terms of Accounting Standards 21 (AS-21) of the Institute of Chartered Accountants of India. With growing perception that Primary Dealership by itself is no longer an attractive business, STCI decided to hive off the Primary Dealership business to its new subsidiary namely STCI Primary Dealer Ltd. which commenced its operations from 25th June 2007. The Subsidiary which started on a cautious note has made steady progress since then. After formation of subsidiary, STCI took up activities of IPO funding, margin funding, commodity future trading, Asset Management, investments in short term corporate loans / CP, equity trading etc. During the year FY 2009-10, STCI has made a PAT of Rs.19.98 crore.

Securities Trading Corporation of India Ltd (STCI)

Indo Zambia Bank Ltd. (IZB) IZB is a joint venture of three Indian Banks viz. Bank of India, Bank of Baroda, Central Bank of India and Government of Zambia. Each of the Indian Banks holds 20% of the share capital, whereas Government of Zambia holds 40% of the share capital. Indo-Zambia Bank Ltd. is a fine example of a successful joint venture. It enjoys the patronage of two friendly republics, the Government of the Republic of Zambia and the Government of India.

BOI + BoB + CENTRAL BANK OF INDIA+GOVT.OF ZAMBIA

BANK OF INDIA(20%)

BOI (20%) CENTRAL BANK OF INDIA (20%)

B B (20%)

BANK OF BARODA(20 %) CENTRAL BANK OF INDIA(20%) GOVT. OF ZAMBIA(40 %)

GOVT.OF ZAMBIA (40%)

2 FRIENDLY REPUBLIC

GOVT.OF INDIA

GOVT. OF REPUBLIC OF ZAMBIA

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BANK'S SUBSIDIARY / ASSOCIATES Regional Rural Banks (RRBs)

1) RRBS 2) BOISL
Regional Rural Banks (RRBs): The Bank has sponsored five Regional Rural Banks (after consolidating from original 16 RRBs) operating in five States. These RRBs are operating in 46 districts with a network of 1018 branches. All the five RRBs have registered a profit of Rs.143.07crore -during the year ended 31.03. 2010 The aggregate Deposits and Advances of RRBs stood at Rs.8,906.11 crore and Rs.4,339.44 crore respectively as at end March,2010.These RRBs have played a significant role in achieving financial inclusion in their respective area of operation by way of opening No Frill accounts, issuance of Kisan Credit Cards and other card products, forming of Farmers Clubs and Joint Liability Groups, financing for Nirmal Gram Yojana, etc. The RRBs have already ventured into other business activities such as Bancassurance, undertaking Government business, pension payments etc. As per recommendations of Working Group on Technology Development in RRBs set up by Reserve Bank of India, RRBs have embarked upon implementation of core banking solution in their 1000 + branches. Nine branches have been migrated to CBS platform as on 31.03.2010 and remaining branches shall be rolled over in phases to achieve 100 % CBS by end September,2011. The Aryavart Gramin Bank sponsored by the Bank has received prestigious Indian Power Award - 2009 for the category -Innovative financing Scheme on "Solar Home Lighting System" from Govt. of India, Ministry of Power. BOI Shareholding Ltd. (BOISL) Bank's association with the Capital Market spans a period of nine decades. The clearing and settlement function of Bombay Stock Exchange (BSE) was being handled by the Bank since 1921.In 1989, Bank set-up "BOI Shareholding Ltd. (BOISL)", joint venture with BSE, to manage the clearing house activities of the Stock Exchange. The Bank is holding 51% of its paid up capital of Rs.2 crore. The company has been carrying out the rolling and weekly settlements of trades executed by member brokers operating on the Exchange, BOISL is also a Depository Participant (DP) of both the Depositories viz. the National Securities Depository Ltd. (NSDL) and the Central Depository Services (India) Ltd. (CDSL) and provides depository services to the clearing members and investors. BOISL is the first Securities Clearing House in the country to have been awarded the ISO 9001:2000 ISO Certification. BOISL earned a net profit of Rs. 709.27 lacs during 2009-10 as against Rs. 531.93 lacs earned during 2008-09.

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Tie-up for General Insurance (Non-life)

National Insurance Co Ltd. (NICL)

1) BOI NATIONAL SWASTHYA BIMA POLICY 2) DOMESTIC TRAVEL INSURANCE 1) BOI NATIONAL SWASTHYA BIMA POLICY:The existing tie-up with NICL was further strengthened with the launch of BOI National Swasthya Bima Policy. BOI National Swasthya Bima is a Family Floater Mediclaim Insurance Cover exclusively devised for all account holders of Bank of India. The coverage is for the Account Holder, Spouse and Maximum of 2 Dependent Children. Entire family (Account holder, his/her spouse and their two dependent children) is covered to the extent of sum insured in as much as part of the sum insured can be availed at different times by family members. Premium is very reasonable than those available in the market due to policy issued on floater basis and this type of floater policy is available to Bank of India account holders only. 2) DOMESTIC TRAVEL INSURANCE: A comprehensive Domestic Travel Insurance scheme under tie-up with NICL has been launched covering loss of life, hospitalisation and personal baggage while travelling on any public mode of transport Rail/Road specially for the Bank of India account holders. The premium payable by the customer is very low and the maximum cover available is Rs.1 lakh. National Insurance Company Limited (NICL) will issue individual policy to customers. This policy is renewable every year. With both these products as well as captive business of insurance of assets financed by the Bank, the Bank has collected premium of Rs.101 crore during 2009-10 recording 17% Y-o-Y growth over 2008-09.

Listing on Stock Exchanges

The bank has also had a major role in the development of the capital markets. In 1921 it was Bank of India which handled the clearing functions of the Bombay Stock Exchange. The shares of the Bank are listed on The Mumbai Stock Exchange Ltd. and the National Stock Exchange of India Limited. CDSL was promoted by Bombay Stock Exchange Limited (BSE) jointly with leading banks such as State Bank of India, Bank of India, Bank of Baroda, HDFC Bank, Standard Chartered Bank, Union Bank of India and Centurion Bank.
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CDSL
A depository facilitates holding of securities in the electronic form and enables securities transactions to be processed by book entry by a Depository Participant (DP), who as an agent of the depository, offers depository services to investors. According to SEBI guidelines, financial institutions, banks, custodians, stockbrokers, etc. are eligible to act as DPs. The investor who is known as beneficial owner (BO) has to open a demat account through any DP for dematerialisation of his holdings and transferring securities. CDSL was set up with the objective of providing convenient, dependable and secure depository services at affordable cost to all market participants .CDSL was promoted by Bombay Stock Exchange Limited (BSE) jointly with leading banks such as State Bank of India, Bank of India, Bank of Baroda, HDFC Bank, Standard Chartered Bank, Union Bank of India and Centurion Bank.

CDSL

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Bank of India and Gupta Equities Pvt. Ltd. sign MOU for Online Share Trading
Bank of India signs MOU with Gupta Equities Private Limited for offering Online Share Trading facility to the customers of the Bank.

A MoU was signed between Bank of India and Gupta Equities Private Limited on 25-6-2010 for offering online Share Trading Facility to the customers of the bank. By virtue of this MOU, Bank of India Customers can enjoy an easy, transparent and speedy way to trade in shares that are listed in the stock exchanges .The customers can also buy and sell securities while on the move by using mobile, laptop, landline or PC by accessing the website of Bank of India or of Gupta Equities Pvt. Ltd. Without having to miss out on any capital market opportunities .The customers of 3200 plus branches of Bank of India can avail this facility. THE MOUwas signed by Shri N.C.KHULBE, General Manager on behalf of Bank of India and Shri Vivek Gupta, director,Gupta Equities Pvt. Ltd. In the presence of Shri M. Narendra,Executive director, Bank of India. Shri M. Narendra,Executive director, Bank of India.said that Bank of India is committed to become a financial supermarket providing diverse financial products under one roof to the customers. Bank of India already has a tie up arrangement with Asit C.Mehta Investment Intermediates Limited (ACMILL) and to give more options to the customers.the Online Trading product is now offered with a tie up arrangement with Gupta Equities Private Ltd. For varied investors need, our branches will be able to provide a bouquet of products, through the Broking Companies. For the customers of the bank this is another convenient avenue to participate in the buoyant stock market. GEPL is a final services company offering fast and anywhere access to broking services in stocks, equities, commodities, debt ,insurance & mutual funds . GEPL also offers portfolio management services and wealth management services.

Technical Appraisal & Loan Syndication

The Banks Technical Appraisal Department, manned by highly experienced engineers, undertakes appraisals of industrial projects, which helps the Bank in picking up right kind of projects to lend reducing technology related risks. The incremental business generated was worth Rs.7674.47 crore and loan syndication process has yielded fee based income for Rs27.75 crore .The Bank has recruited 20 Engineers from the industry with diverse experience to strengthen the technical appraisal arm of the Bank.

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Export Credit
The Bank is very active in meeting the importers and exporter clients financial requirements in domestic currency and also in foreign currency. Banks 192 branches across the country are authorized to handle foreign exchange business and cater to the credit/ foreign exchange needs of importers & exporters .The Banks export credit registered a growth of Rs. 602 Crores i.e. 9.98% increase over March 2009 and reached a level ofRs.6,635 Crore as on 31st March, 2010.

GROWTH BY 9.98% YEAR MAR 2009 MAR 2010 EXPORT CREDIT (Rs.) 602 CR 6635CR

The share of export credit to net adjusted bank credit as at March 2010 was 5.90%.

Forex Business
The forex business handled by the bank has good growth. During the year 2009-10, Export turnover was Rs.14703Crore and the Import turnover was Rs.18283 Crore. The Bank continues to be a leading player in forex market.

YEAR
EXPORT TURNOVER IMPORT TURNOVER

2009-10
Rs.14703 Rs.18283

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Mutual Funds Products:

During the year 2009-10, Bank entered into tie-up with 1) DSP Black Rock Mutual Fund, 2) Reliance Mutual Fund and 3) Birla Sun life Mutual Fund for sale of their mutual fund products. Bank is already distributing mutual fund products of: i. ii. iii. iv. v. vi. UTI Mutual Fund, HDFC Mutual Fund, Kotak Mutual Fund, ING Investment Management, Franklin Templeton Investments and IDFC Mutual Fund.

Around 837 branches sell mutual fund products with the support of over 270 AMFI Certified Employees available at strategic centres.

Bank of India : Challenges to banking sector today

Pro-active, innovative state-of-the-art banking services! Bank of India is a public sector bank, with a total business of Rs.2,82,123 crores, as on June 2008.

A .P. Ghugal The Bank is marching into next century position as an institution offering the best of two worlds with a sound heritage and foundation and committed staff with a new-age attitude and drive, avers Mr. A .P. Ghugal, general manager, priority sector department. Bank of India provides superior, pro-active, innovative state-of-the-art banking services with an attitude of care and concern for the customers and patrons. Our strength is our brand image and customer loyalty. This will be the basic genesis on which we would like to leverage business growth, he adds.

He states some of the success stories in Bank of Indias history of growth: Kolhapur Zone Amrutnagar Shree Warana Sahakari Dudh Utpadak Prakriya Sangh Ltd. was established by Late Mr. Tatyasaheb Kore in 1968, in Kolhapur and financed by Bank of India. Their milk products started a co-operative movement that has won a place in the hearts of 60,000 milk producer families in the area. The project of

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Dairy Development has helped to provide a guaranteed year round market for the milk produced from distant remote villages in the area. The integrated approach has enhanced various aspects of dairy farming cross breeding of cows and buffaloes, proper cattle feed, improved veterinary services, updated method of fodder production, etc. to upgrade the farmer through proper care, training programmes to improve productivity and even by providing loans and all inputs and now computerized management of village level dairies under Government of India Pilot Project on IT & connectivity. This movement has crossed the turnover of Rs.200 crores per annum. The dairy has acquired ISO 9002 certificate. In addition to this, Warana Dairy houses a plant of milk processing with the capacity of 5 lakh litres per day. Along with Warana Shrikhand, an indigenous Indian sweet, Warana Milk Powder is another export quality product by Warana.Produced in a quantity of 50 metric tonnes per day, it is exported to Gulf nations like Kuwait, Saudi Arabia and Sharjah. Warana Shrikhand has set a record of highest selling Shrikhand in India. It is also a very popular product in Maharashtra. The dairy produces various milk products like pasteurized milk, milk powder, shrikhand, ghee, butter, cheese, paneer and many more. The Warana Dairy is now planning to enter the European market.

Kolhapur Zone Jaysingpur Mr. Ganpatrao Appasaheb Patil and his family are banking with BOIs Jaysingpur Branch for the last 30 years. The family is devoted to agricultural development and has keen interest in innovative agricultural practices. Mr. Patil, who initially started with a grape garden of 0.70 ha. has now removed his well developed grape garden to set up a green house hi-tech agricultural project in 8 ha. by availing project finance from Jaysingpur Branch. The firm Shreevardhan Bio-Tech has farms at village Kondigre in Shirol taluka of Kolhapur district, cultivating 45 varieties of gerbera, 12 varieties of Dutch roses and is an exporter of roses to various countries particularly Japan. He has made record production of 125 tonnes/ha. of coloured capsicum (pepper). He is cultivating roses and Gerbera in cocopeat (without soil). The green house is equipped with automatic computerized fertigation unit with drip irrigation supported by a chain of cold storages and reefer vans. His farm is a unique example of combination of local material, skills and imported technology indigenized for local conditions, which has resulted in substantial reduction in project cost and producing the roses acceptable in overseas market. A renowned Dutch rose breeder had sent 18 new rose varieties to be tested on the farm. The best variety selected by them has been named after the breeder as Shrivardhan. This dedicated progressive farmer has ensured blossoming of hi-tech agriculture profitably which is being emulated by many farmers in the vicinity.

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Karnataka Zone Bangalore Agri. (Hi-Tech) Finance Mr. K. Ashwathanarayana, a primary school drop-out is basically a small-time farmer, who took interest in plant nursery. He began his banking relationship with Bank of India, Siddapura Branch in the name of New National Nursery. He made a humble beginning in trading nursery plants and slowly captured Kolkata and Kerala markets. He approached BOIs Hi-tech Agri. Finance Branch for a term loan for improvement of nursery project. The branch officials gave him an idea about benefits of floriculture under controlled conditions. He accepted the idea and decided to avail term loan for floriculture under polyhouse conditions. From a term loan of Rs.20 lakh, he started with pilot project for cultivation of gerbera flowers at his farm near Devanahalli. Today, he is an expert in growing high quality gerbera and carnations. Flower decorators place advance orders for these flowers with specific colours. He has expanded the polyhouse on about 2 acres area by availing additional loan. His farm has become a model farm. He now knows every aspect of hi-tech farming of these flowers. The polyhouse is fabricated by him. The drip irrigation system is done by him, thus saving substantially in capital expenditure.

Gandhinagar Zone Sandra Shri Babubhai Kuberbhai Patel and seven other residents of village Chandrala, dist. Gandhinagar, purchased a piece of rain-fed and undulated bushy land in their individual names in village Vaghpur, dist. Sabarkantha on Sabarmati river bank. That land beside the dry Sabarmati River Bank is sandy, suitable only for bushes and other wild plants. At that time it was unimaginable to think of growing high yielding vegetable plants on this land. Therefore, challenges before these farmers were great and stakes high.All their pieces of land were adjoining each other and all of them jointly took the task of converting barren land into fertile and irrigated land by putting in labour by bunding, leveling and ploughing from their own funds. The branch sanctioned credit facilities aggregating to Rs.73.65 lakh comprising finance for land development, drip irrigation and crop loans, etc.

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Hyundai India Ties Up With Bank Of India

Hyundai Motor India Ltd., the second largest car manufacturer and the largest passenger car exporter, in a bid to enhance financing options for its customers, signed a memorandum of understanding (MoU) with Bank Of India, a major public sector bank. Under the MoU, Bank of India , a premier nationalized bank, will be financing prospective constituents to acquire Hyundai cars at an attractive rate of interest of 10.25% for 3 years and concessional processing charges (Rs.1000/- flat).The MoU, is signed by Arvind Saxena, SrVP, Marketing &sales, Hyundai Motor India Ltd, and Nagesh Pydah, general Manager, Bank of India, Local Head Office, Chennai, will assist in giving a boost to auto sales at the time when the auto industry is facing a slowdown. Bank of India , with a business mix in excess of Rs.310000 crore is a front runner in terms of profitability , growth and sustainability having won four awards recently in the banking space (KPMG, Business World, NDTV Profit, Dun and Bradstreet),WITH OVER 2978 branches including 26 overseas centers(of which 2,575 are under the C B S Platform).The strategic alliance with HMIL will help both the partners to reach out to a wider market and make available auto loans for prospective car owners on user-friendly terms. It is an effort to ensure that HMIL is able to reach out with more finance options with rationalized interest rates for the benefit of the customers. This tie-up is extended to cover financing by all branches of Bank of India in India. The two partners will utilize each others strengths to cross sell Hyundai vehicles and the banks car loans and other schemes. The tie-up with HMIL offers a tremendous opportunity for to proliferate HMILs business and contribute widely to demand creation in a scenario which otherwise is witnessing a demand contraction. It is an opportunity for Bank of India to cross sell the banks products as well.

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BoI offers moratorium scheme for Nano loans

Bank of India, which is not one of the preferred lenders for Tatas Nano, has come out with a moratorium scheme for auto loans. This scheme will ensure that its customers dont go to other banks for loans for the Nano, said a senior official from the bank. Under the scheme, there is no upfront recovery of interest. For three months the borrower does not have to pay either interest or principal on the loan. The bank is charging a floating rate of interest of 10.25 per cent with a repayment period of less than 36 months and 10.75 per cent between three and six years. For the booking amount, the charge is 12 per cent fixed rate of interest and it is available only till delivery of the vehicle. Booking loan may be for a short period of 90 days only and delivery period as declared by Tata Motors, said a press release from the bank. The loan for the vehicle is for a maximum period of six years, and the rate is between 10.25 per cent and 10.75 per cent. According to the official, while the charges on the booking amount may not be competitive, the charges on the vehicle loan, once the customer gets delivery are competitive. In the long term our customers will benefit, he said.

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NEW PRODUCTS & SERVICES

1. CORE BANKING SOLUTION: All domestic branches are covered under Core Banking Solution. New domestic branches opened are directly under the CBS platform. All domestic branches are RTGS/NEFT enabled. 2. CALL CENTRE FACILITY: Call centre facility is made operational as an alternate delivery channel to a branch set-up which would act as a Contact centre and is a cost effective touch point for customers. MARATHI VERSION OF WEBSITE: Bank has launched the Marathi version of its web-site. WELCOME KIT: Bank has launched Welcome Kit for all new accounts opened at the select branches of Mumbai, New Delhi, Chandigarh and Ghaziabad. The kit contains cheque book, ATM card, Pin, TPIN and internet PIN, the unique feature of which is that the same are in activated status from the day one. CUSTOMER COMPLAINT MANAGEMENT SYSTEM: A web based Customer Complaint Management System has been made live from 1st January, 2010 to reduce the response time.

3. 4.

5.

6.

ORACLE MARKETING: Oracle Marketing Online product has been implemented at Data Warehouse for communicating with customers via email. With this system in vogue, Bank is able to deliver emails overnight to its customers. SMS ALERT FACILITY: SMS alert facility has been introduced and provided to all customers for all debit transactions from delivery channels, all debit clearing transactions of Rs.25000 and above, all customer induced debit transfer and cash payments of Rs.10000 and above, all debit RTGS transactions and acknowledgement on accepting the cheque book issue request. 2FA (TWO FACTOR AUTHENTICATION): Bank of India is the first PSU Bank in India to implement TWO-Factor Authentication (2FA) Star Token for both Retail and Corporate internet banking customers as an additional security measure. Banks customers enjoy the convenience of secured Anytime, Anywhere, Anyhow hassle free Banking from the comfort of their homes and offices with a click of a mouse. RESETTING/UNBLOCKING LOGIN PASSWORD: Resetting or Unblocking of Internet Banking login password can be done using Debit-cum-ATM card PIN.

7.

8.

9.

10. CREDIT CARD TRANSACTION: Transaction under taken through Credit Card can be viewed through Internet Banking channel.

21

11. ASBA (APPLICATION SUPPORTED BY BLOCKED AMOUNT): Provision to make online bid-cum-application for Application Supported by Blocked Amount (ASBA) IPO issues by Retail Internet Banking Customers

12. MOBILE BANKING SERVICES: Mobile Banking Services extended to all retail internet banking customers which includes features like Balance enquiry, last five transactions, Cheque status, Funds Transfer and Mobile Payments.

13. NFS (NATIONAL FINANCIAL SWITCH): Bank has joined National Financial Switch (NFS) which enables customers to access more than 50,000 ATMs across the through owned as well as shared ATMs network. 14. SOME IMPORTANT PROJECTS: Technology has been leveraged in some important projects like Financial inclusion project for Banking the unbanked sector, Solar Power Project which is Eco-friendly for Technology Power for Rural Areas, V-sat Connectivity Project Networking / connecting the Rural / Remote locations. 15. BIOMETRIC SMART CARDS: Bank launched Star Abhilasha Biometric Smart Cards in Nagpur, Maharashtra in February, 2010. Installation of Biometric ATMs and ATMs with easy accessibility for the physically handicapped is being established.

Card Products
The Bank has Six Credit Card products. The Bank has also two affiliate banks viz. Bank of Maharashtra and Tamilnadu Mercantile bank Ltd issuing Credit Cards under the brand name IndiaCard. During the year Issuing turnover witnessed growth of 5 % and stood at about Rs.285 Crore and acquiring turnover witnessed an increase of 7% and stood at Rs.256 Crore. The number of Debit cum ATM cards stood at 46 lakh comprising of 20 lakh Starlinks International ATM cum Debit Cards (Visa Electron) and 26 lakh BOI Global Debit cum ATM cards (MasterCard). Debit cards registered a growth 44 % during the year 2009-10. The Bank has in place bilateral and multilateral agreements with a cross-section of Banks for sharing of ATMs. Thus our cardholders have the privilege of accessing around 50,000 ATMs throughout the country. Bank will be shortly launching Platinum Debit Card for the elite customers. Our prepaid cards will also be ready for marketing within another couple of months. The Bank continues to be the settlement bank for MasterCard in India, Cashtree and Bancs networks.

22

23

e- Payment facility to customers of the Bank. The Bank has been providing facilities of making e-Payment of Direct Taxes, as well as Indirect Taxes (Central Excise & Service Tax) to the customers, through Banks Internet Banking System. The ePayment facility is also available for custom duties at Nhawa Shewa, Ballard Estate and Mulund (E) branches. The tech-savvy, user-friendly and hassle-free facility of on-line tax payment is available in all our branches, is earning rich dividends for the Bank through customer delight and increase in business

SMS Alerts - Star Sandesh As a fraud prevention measure, SMS alerts are generated and provided to all customers who have registered their mobile number with the Bank for All Debit transactions from delivery channels (Internet banking/ATM). All Debit clearing transactions of Rs 25,000/- and above. All Customer induced debit transfer & cash payments of Rs. 10,000/- and above. All Debit ECS transactions of Rs 10,000/- and above. All Debit RTGS transactions. Acknowledgment on accepting the cheque book issue request.

Internet Banking: A fast and secure internet banking facility is available to customers for utility bill payments, air & rail ticket booking, online shopping, inter-bank and intra bank fund transfers, etc. Bank of India is the first PSU Bank in India to implement Two-factor Authentication (2FA) - Star Token for both Retail and Corporate internet banking customers as an additional security measure. Bank's customers enjoy the convenience of "secured" Anytime, Anywhere, Anyhow hassle free Banking from the comfort of their homes and offices with a click of a mouse. Features introduced during the year are: Resetting or Unblocking of Internet Banking login password using Debit-Cum-ATM card PIN. Display of Credit Card details and transactions on Internet Banking. .
24

Mobile Banking Services Mobile Banking facility has been introduced as the latest alternate delivery channel which allows customers to do banking activities virtually from the convenience of the Mobile phone at any time and from anywhere. This facility is extended to all Retail internet banking customers and includes features like Balance enquiry, last five transactions, Cheque status, Funds Transfer & Mobile Payments. Other Online Services The Bank offers the following value added services:Online Interbank Fund Transfer across banks, through Star Connect Internet Banking Services, using RTGS CUSTOMER SERVICE Compliance to BCSBI Codes The Bank is a voluntary member of Banking Codes and Standards Board of India (BCSBI). In order to bring about standardization of services, the Bank has adopted policies and displayed on its website for information of the public. They are i) Cheque collection policy ii) Compensation policy. iii) Collection of dues and repossession of Security policy, iv) Grievance redressal policy, v) Policy for settlement of claims in respect of missing persons

Credit Counselling Service

Launching of "ABHAY" at the hands of His Excellancy, President of India

25

Bank of India being a major bank in the public sector always endeavours to strike viable equilibrium between commercial objectives and social responsibilities. As a reaffirmation of the banks commitment to the corporate mission, bank has started credit counseling services at free of cost to the Common People to enable them to lead a respectable life. The Credit Counseling services were started under the aegis of the Trust "ABHAY" which was launched at the hands of His Excellency President of India Dr. A.P.J. Abdul Kalam at New Delhi on 25th August, 2006. The first center was inaugurated at Mumbai by Dr. Y.V.Reddy, Governor, Reserve Bank of India on 7th September, 2006 which was followed by Centres at Wardha in Nagpur and Chennai. The following are the main objectives of the Trust. Advising on gaining access to structured financial system including banking Creating awareness among the public about financial management Counseling people who are struggling to meet the repayment obligations and helping debt resolution Helping in rehabilitation of borrowers in Friendly and timely guidance coupled with related support extended by the counselors will not only mitigate the immediate stress of the trapped individuals and their households, but it will also help to infuse confidence in others who are in distress, irrespective whether they are customers of Bank of India or other Banks. With the common objectives of counseling the borrowers, different focus is being given in metro/urban and rural areas, to meet their different needs.

vi)Rehabilitation policy for SME. The Bank has adopted the revised code of commitments announced by BCSBI in August 2009 to help individual customers take informed decisions on Banks products and services.

Inauguration of First "ABHAY" Center in Mumbai by RBI Governor, Dr.Y.V.Reddy

26

Other New Initiatives: Technology has been leveraged in some important projects viz. Financial Inclusion Project - Banking the unbanked sector. Solar Power Project - Eco-friendly - Technology Power for Rural Areas. V-sat Connectivity Project - Networking / connecting the Rural / Remote locations. Collaborative Communication -Virtual classroom sessions / Installation of High definition Audio / Video equipments. E -learning to revolutionise training. Installation of Biometric ATMs and ATMs with easy accessibility for the physically handicapped. Sales Lead Management. Customer Complaint Management Solution. Credit Risk Management Project. Credit application Processing Systems (CAPS). Anti Money Laundry System. Human Resources Management Systems. NEW INITIATIVES FOR GROWTH IN LENDING TO MSE SECTOR IN THE CURRENT YEAR:  Simplified loan application and loan proposal forms for MSE borrowers.  In order to mitigate the hardship & to facilitate the easy availability of credit to SRTO, the proposals for SRTO borrowers up to the limit of Rs.100 lacs have been exempt from the Small Business Services (SBS) credit rating model by introducing a simplified scoring model of credit rating for such accounts.  Encouraged loans to micro and small sector through increased coverage under CGTMSE cover.  Increased number of SME branches from 50 to 100.  Set-up SME hubs and Nodal Officers at all Zonal Centres.  Have devised a NEW Composite Loan Scheme for MSE Sector borrowers in Rural/SU/U areas for maximum exposure of up to Rs. 5 lacs per borrower. The scheme has unique features like simplified application cum proposal format, hassle free minimum documentations, relaxed margin and interest rates etc.

27

 MOU have been signed with Tata Motors, M/s Piaggio Vehicles Pvt. Ltd., M/s Asia Motor Works, M/s JCB India Ltd M/s Mahindra Navistar M/S Ashok Leyland Ltd.,Sonalika Group of companies etc. for financing vehicles/ earth moving equipments.

ROAD MAP FOR 2010-11:

GOALS: I. 20% incremental growth in MSE /MSME credit portfolio. II. Reducing gross NPA level to below 2% (presently 2.85%). III. Identifying and financing at least 100 new clusters @ 2 cluster per zone. IVDoubling SME branches share in total MSE advances to 20% from the present level of less than 10% (9.38%). V. Covering 25000 new accounts under CGTMSE guarantee scheme. VI. Increasing the flow of credit to Micro sector borrowers.

SME Rating Agency of India Ltd. (SMERA) SMERA was set up during FY 2005-06 by SIDBI in association with Dun & Bradstreet, one of the leading credit rating agencies. SMERAs primary objective is to provide comprehensive, transparent and reliable ratings which would facilitate greater and easier fl ow of credit to SME sector. Bank has a nominal stake of 4% in the equity capital of the company.

AWARDS & ACCOLADES 1. Best Performance in Western Zone under the Rural Employment Generation Program (REGP) of KVIC. 2. Bank has been rated by the Economic Times / The Nielsen Company survey as The Most Trusted Brands (MTB) 2009as follows: Under PSU Banking Category 2nd next to SBI. Under Top Service Brands 8th . 3. 4. 5. The Debutant 1st time in top 100. NDTV Profit Business Leadership Awards 2009- Best PSU Bank. Outlook money NDTV Profit Awards 2009 Best Education Loan Provider Runner up.
28

CIO Green Information Technology Award. Dun & Bradstreet Rolta Corporate Awards 2009, Best 7. Bank under Banking Category. 8. FE-EY Most Efficient Public Sector Bank Awards 2010 by Dalal Street. 9. Second Rank for excellent performance in lending to Micro & Small Enterprises Sector by the Ministry of Micro, Small & Medium Enterprises. Also, Best Performing bank for covering maximum number of Micro & Small accounts under collateral free lending scheme of CGTMSE.

6.

Banking Technology Award

Bank of India has been conferred Winner award in the Best Business Enablement Initiative Category in recognition of the outstanding achievement in Banking Technology for the year 2009 in The 2010 International Banking Technology Conference & Awards function sponsored by IBA. During the year Bank has received various awards for implementation of Official Language policy. Prominent among them are First prize to our New Delhi zone, Third Prize to our Ranchi & Mumbai (North)zones whereas Patna TOLIC working under our convenership has been awarded with the first prize. Our Ujjain, Kolhapur & Hyderabad Zones received first prize, Patna has received second prize and Bhubaneshwar has got third prize from their respective TOLIC. The Bank has been awarded with consolation prize from State Level Bankers Committee, Pune. The Bank's website, most of the information have been made available in Hindi.

Other Strategic Investments

Investments MCX STOCK EXCHANGE LTD. UNITED STOCK EXCHANGE LTD. EQUIFAX CREDIT INFORMATION SERVICES LTD. U.V.ASSET RECONSTRUCTION CO. LTD.

Rs. 25CR 7.50CR 75CR 15LAKHS

Stake 4.6% 0.05% 3.5% -

29

OTHER STRATEGIC INVESTMENTS

CLEARING CORPORATION OF INDIA AGRICULTURAL FINANCE CORPORATION LIMITED SIDBI TOURISM FINANCE CORPORATION LIMITED CENTRAL WAREHOUSING CORPORATION LIMITED MPCON HIMCON HARDICIN MITCON NITCON

0.50CR 1.26CR 45.30CR 2.67CR 1.11CR 0.16CR 1500 10000 40000 20000

ASSETS RECOVERY & NPA MANAGEMENT Reduction of NPAs is given utmost priority and this function has steadily grown in importance. Substantial measures were initiated to augment recovery and contain NPAs. Efforts were also made to maximise recovery in written off accounts and uncharged / unrealised interest in NPA accounts which contributes to Banks profits significantly. To boost up recovery in small accounts, 2 existing schemes have been modified during last year by the Bank as under:i) Star Sanjeevani Incentive Scheme for NPAs up to Rs.25lakhs ii) Incentive Scheme for Upgradation of accounts up to Rs.50 lakhs in sub-standard category. The Schemes have been introduced with intention to motivate the field level staff and reduce the dependence on Professional Recovery Agents. This has paid rich dividends in the form of involvement of staff at every level and improving recoveries in these segments.

30

MARKETING & PUBLICITY

Marketing has been an important focus in the Bank to induct new customers and create a set of customer centric processes for enhancing value for them. A team of over 1000 proactive and well trained personnel for focused marketing and relationship efforts has been placed in all the zones. For automating the entire Sales Force process and consequently better administration of marketing staff, Sales Force Automation (SFA) Software Package has been launched and made LIVE from 01.02.2010 in all the zones. The system will effectively capture, monitor, track, close and analyze leads generated during presales process. This system will also be used for administering the incentive schemes as well. The Bank has with a view to enhance its corporate image and identity, initiated media campaigns on the existing theme

"Relationships beyond Banking".

Towards this end three TVCs were produced in line with our Relationship theme viz. Old Couple, Friends and Bus which were aired on both National as well as Regional Channels.

Bank has also been advertising its products in newspapers, magazines, television, hoardings, banners, bus panels, trains, glow signs at railway stations, events and sponsorships, leaflets and brochures. Banks endeavour is focused on building brand image, increasing the visibility and better marketing of various products through effective publicity.

ADVERTISING PRODUCTS THROUGH:

NEWSPAPERS MAGAZINES TELEVISION HOARDINGS BANNERS BUS PANELS TRAINS GLOW SIGNS AT RAILWAY STATIONS EVENTS AND SPONSORSHIP LEAFLETS AND BROCHURES

31

IN-HOUSE PUBLICATIONS The quarterly House Journal Taarangan, carries news, views with photographs from staff-members, customers and news from finance / banking industry and the world at large. During the year 2009-10, many changes were made in Taarangan to make the contents richer. Taarangan was awarded "Certificate Of Excellence", by Rotary Club of Cochin Midtown in the All India House-Magazine Contest 2008-09. Also, Association of Business Communicators of India (ABCI) awarded Silver and Bronze Trophy for TAARANGANS Features (Language) and Special Column (Language) category..

TROPHY
SILVER BRONZE

AWARDED FOR
FEATURES SPECIAL LANGUAGE

INTERNAL CONTROL MECHANISM Risk Management

Risk is an integral element of the activities of any bank. Accordingly, the purpose of the risk control function is not only to minimize risks but also to ensure that the institution properly identifies measures and handles risks and prepares adequate reports on all these efforts so that the extent of risks, which have occurred, should not endanger the continuity of operations. With this in mind the bank has established and operates mechanisms, which ensures the ongoing assessment of relevant risk types on an individual basis and of the overall risk position of the bank.

32

Risk Management is a Board driven function in the Bank with the Risk Management Committee of the Board at the apex level supported by operational level committees of top executives for managing various risks. The process of risk management consisting of various stages i.e. identification, measurement, monitoring and control, is covered in the policies for Enterprise Wide Risk Management, Credit Risk Management, Operational

Risk Management, Market Risk Management, ALM and Dealing room operations. These stages constitute a control cycle, which also involves feedback and feed forward loops. The identification, definition and recording of all potential risks, in all activities and products is done through detailed analysis and vetting the same by the operational level risk committees and task forces.

Risk profiling of the bank is also done on a quarterly basis. Various tools and systems like prudential limits, new Basel Compliant credit Rating Models, Credit Audit, VaR models for market risks, Self assessment exercise coupled with tracking of Key Risk Indicators for operational risk have been introduced for assessing/measuring the identified risks.

Data warehousing project to provide comprehensive data for analysis is implemented. The Bank is implementing Credit Risk Management Software which will help the bank in improving the data quality and completeness and upgrading its Risk Management systems. The Bank has migrated to computation of capital adequacy under New Capital Adequacy Framework (Basel II) based on Standardised Approach for Credit and Market Risk and Basic Indicator Approach for Operational Risk as per RBI guidelines effective 31.03.2008.

The Bank undertakes Internal Capital Adequacy Assessment Process (ICAAP) on a yearly basis for assessment/measurement of various risks, the limits of its risk-bearing capacity and appropriate level of internal capital in relation to the risks and the Risk Appetite.

Stress Testing Process is in place for enhancing risk assessment by providing the bank a better understanding of the likely impact even in extreme circumstances. This exercise is expected to render an objective basis for decision making both to the risk control function and to the entire institution and also for assessing the performance of the independent control function.

33

Bullion Banking

Bullion banking was introduced by the Bank in November 1997. Initially the scheme was introduced at SEEPZ and Ahmedabad branches and was subsequently introduced at other branches. As on date although 9 branches are authorized to undertake bullion business only 5 branches i.e SEEPZ , Ahmedabad (Main), Bullion Exchange , Chennai Bullion and Bow Bazar Branch are undertaking bullion business.

Multi Commodity Exchange of India Ltd. (MCX)

MCX is a new generation multi commodity exchange undertaking future trading in multi commodities at the national level. The Exchange commenced operation during FY 2004-05 and within a short span has come up as India's No. 1 Commodity Exchange. It now figures in the world's Top Bullion and Base Metal Exchange. Bank has a nominal stake of 2% by way of equity participation in the capital of MCX with a view to be associated with one of the major commodity exchanges. Bank also handles clearing bank functions of the exchange through Bullion Exchange Branch. MCX paid a dividend of 50% for the FY 2008-09.

34

GOVERNMENT BUSINESS DEPARTMENT 1) 2) 3) 4) TRUSTEE BANK TO NEW PENSION SCHEME e-PAYMENT FACILITIES TO CUSTOMERS OF OUR BANK PENSION PAYMENT AND HANDLING VARIOUS SAVINGS SCHEME SECURITY DEPARTMENT

35

1) Trustee Bank to New Pension Scheme The Bank secured a prestigious assignment for a period of 5 years from Pension Fund Regulatory & Development Authority (PFRDA) for Central Govt. employees, extended to cover Central Govt. Autonomous Bodies, State Govt. /UT employees, State Govt. Autonomous Bodies and also employees of Unorganized Sector. We have also got approval from PFRDA to function as PoP (Point of Presence) in 5 States viz. Maharashtra, Gujarat, Bihar, Jharkhand and MP. This will provide ample opportunity to the Bank to garner more business from these sectors.

MAHARAS HTRA

GUJARAT

BIHAR

JHARKHAND

MP

2) e- Payment facility to customers of our Bank. The Bank has been providing facilities of making e-Payment of Direct Taxes, as well as Indirect Taxes (Central Excise & Service Tax) to the customers, through Bank's Internet Banking System. The ePayment facility is also available for custom duties at our Nhawa Shewa, Ballard Estate and Mulund (E) branches. The tech-savvy, user-friendly and hassle-free facility of on-line tax payment is available in all our branches, is earning rich dividends for the Bank through customer delight and increase in business.

36

3) Pension Payment and handling various Savings Schemes.

The bank is offering pension payment services to Defence, Central Civil, Railway, Telecom and State Govt. pensioners. A Centralized Pension Processing Centre has been set up, starting with Civil pensioners, followed by other pensioners at Nagpur, to bring more efficiency and expeditiousness in the process. We are offering various RBI Relief Bonds, Senior Citizen Savings Schemes and PPF Deposit services through our branches at all important locations. We are coordinating with the Govt. authorities for integrating their Core Accounting Systems with our Core Banking Systems to facilitate e-governance through e-lekha and financial inclusion.

CORE BANKING SYSTEMS

RBI RELIEF BONDS

SENIOR CITIZENS SAVINGS SCHEME

PPF DEPOSIT SERVICES

37

4) Security Department Security Department in the Bank is very well organized and functioning under the control of General Manager (In-charge Security). The department is headed by a Chief Security Officer and Security Officers recruited from Defence /Para military forces are posted at Zonal Offices. The department is responsible to make security policy of the Bank and ensure its implementation.

Global scenario After leading the world financial system to its booming stage year after year, the USA faced worst financial market crisis from the beginning of the year 2008. A number of financial institutions, investment banks and hedge funds were in turmoil mostly due to over exposure to realty, default by large number of sub-prime borrowers and failure of many derivatives. The crisis spread rapidly over to European and other advanced countries resulting in widespread write-downs, government bailouts, mergers and bankruptcies. In the cascading effect, financial and banking crisis turned to economic crisis in the advanced countries and rapidly engulfed the whole world. Many economists are now predicting that the Great Recession of 2008- 09 will be the worst global recession since the 1930s. Recent evidence world over suggests that contractionary forces are strong - demand has slumped, production is plunging, job losses are rising and credit markets remain in seizure. IMF has projected Global Economic growth rate at 0.5% for 2009 and World Bank has forecasted Global GDP growth of 0.9% in 2009. To counter the unexpected economic downturn, the governments and central banks in major industrialized countries have taken both fiscal and monetary initiatives, some of them bold and unconventional. However, with oil prices hovering at as low as $40 with inflation and interest rates at historic low in major economies, the global economic recovery process have been rather slow.

Opportunities  Indias GDP growth rate may be around 6% for the FY 2009-10. Though it is on the lower side in comparison to previous years, it would be much comfortable position in the prevailing global scenario. The economic activities are expected to open up various banking possibilities encompassing industry, agriculture and service sectors.  The headline inflation has fallen sharply and recent trends suggest that it may move to negative. The decline in inflation should support consumption demand and reduce input costs for corporates.

38

 To defuse the economic recession, government spending on various projects are expected to increase for which a number of stimulus packages are already under implementation. This will provide avenues to banks for resources and its further deployment.  Large number of sectors require push in demand are infrastructure, petroleum fertilizers, IT, textiles, iron & steel, automobiles, cement etc and hence require huge investment. They will generate forward and backward linkages with other sectors and facilitate growth and further investment. All factors taken together, demand for bank credit would increase substantially.  Agriculture being the occupation of majority of population and good crop expected as normal rainfall forecasted, opportunities for banking activities in vast areas are immense. Also, over the years, India has built an extensive network of social safety-net programmes, including the flagship rural employment guarantee programme, which would keep the sector moving ahead.

Challenges

 The future trajectory of the global crisis is not yet clear. The year 2009-10 will be more challenging especially for the banks to ensure healthy flow of credit to the productive sectors of the economy. Some of the key issues that would have to be addressed are lower economic growth, drop in exports, incomplete projects, volatile currency movements, etc.  Inflation rate moving towards negative may push the economy from disinflation to deflation. Sustained drop in prices may affect both economic output and employment negatively.  Banks have to look more to retail base for increasing resources as corporate sectors would struggle with their diminishing cash flow and liquidity condition.  Growth of quality assets, which are normally low yielding, would be tied up unless commensurate cost-effective CASA deposits are mobilized.  Fee income will play a major role in the revenue topography of the bank as the Net Interest Margin obtaining till now may not be available any more.  Maintenance of assets quality would require more vigorous exercise as mid-corporate, SMEs and export oriented units are likely to be under stress.

39

Call Centre

In the present banking scenario, Call Centre is expected to function as an alternate delivery channel to a branch set-up. A full-fledged Call Centre reduces the burden of branches in handling the customers. It acts as a Contact centre and is a cost effective touch point for the customers. A Call Centre is supposed to receive the incoming calls for the product support, service support, service deficiency reports or information enquiries from the existing/prospective customers and marketing of the Banks products.

Present Status: 1. Established on 07.09.2006, Bank of India call centre caters to all types of enquiries from existing/ prospective/ future customers related to: a) Banks schemes / products b) Complaints c) Queries related to ATM, Internet Banking, Tele Banking, SMS Banking, Mobile Banking etc. 2. Functions from 6.00 hrs to 23.00 hrs. It is managed by 10+1 Executives of M/S Hewlett Packard (HP) & supported by 3 bank officers from 8.00 a.m. to 8.00 p.m. on 8 hours shift basis on all week days including Sundays / Public holidays. 3. It has a single phone number 40919191 with 20 hunting lines. 4. M/S Servion Global Solutions Ltd., Chennai is the service provider/vendor for Interactive Voice Response (IVR) system installed at the Call Centre as well as other Call Centre applications e.g. Rap CTI , Raplog , Rapreports . The IVR system is for the customers who have Tele banking PINs (TPINs) as well as the non customers who want the product & general information. Activities presently undertaken:

1. The information on banks products & services is provided through IVR system to the caller/customer without TPIN who can converse with the Call Centre Executive (CCEs) for any product/service information but the CCEs cannot view accounts/ other details of any customer who is not entering through TPIN.

40

2. The Call Centre gives additional information to the existing customers through TPIN as regards the balance enquiry, cheque status, last 5 transactions.

3. The Call Centre also attends to all the inquiries coming through SMS (57575) by downloading the data daily. The outbound calls are made to contact the customers who approach through SMS.

Future activities:
The following services will be integrated in the existing system:  Prepayment/Payment of Term Deposit.  Debit Card PIN/TPIN request.  Registration for Mobile Banking Process.  Mobile Banking Charges- Utility Payment.  Issue of Term Deposit & Recurring Deposit.  Execution of Standing Instructions.  Issue of Demand Draft/Pay order.  Linking of more than one account to a Debit Card.  Request for regeneration of password for Internet Banking.  Process for registration for e-bill payment (E-pay) & Demat Facility.  Request for Duplicate Password for Internet Banking.  Closure of account.  Transfer of accounts.  De-mat accounts & all other related activity
41

Common Sized Balance Sheet as on 31-3-2010

PARTICULARS CAPITAL AND LIABILITIES CAPITAL RESERVES AND SURPLUS MINORITIES INTEREST DEPOSITS BORROWINGS OTHER LIABILITIES ANDPROVISION TOTAL ASSETS CASH AND BALANCE WITH RBI BAL.WITH BANK & MONEY AT CALL AND SHORT NOTICE INVESTMENTS ADVANCES FIXED ASSETS OTHER ASSETS TOTAL CONTINGENT LIABILITIES BILLS FOR COLLECTION

31-3-2010 (Rs.)

31-3-2009 (Rs.)

31-3-2008 (Rs.)

52,59,146 13,91,91,150 31,92,251 230,40,82,106 22,39,98,955 926,15,184 276,83,38,792 15,65,79,623 15,79,11,119

0.18 5.02 0.11 83.22 8.09 3.35 100 5.65 5.70

52,59,146 13,13,06,332 10,25,655 190,17,66,694 15,67,87,873 674,27,826 226,35,73,526 897,50,850 12,91,48,888

0.23 5.80 0.05 84 6.93 2.98 100 3.96 5.70

52,59,146 10,14,51,158 2,45,278 150,40,53,216 717,24,490 11,06,90,580 179,34,23,868 11,77,56,904 602,53,222

0.3 5.7 0.01 83.9 4 6.17 100 6.56 3.36

68,11,26,918 169,03,10,111 237,89,166 586,21,855 276,83,38,792 135,15,69,147 11,81,08,338

24.60 61.05 0.85 2.11 100 48.8 4.26

52,87,18,108 143,32,26,118 2,56,13,446 5,71,16,116 226,35,73,526 122,30,39,248 11,49,07,372

23.4 63.3 1.13 2.52 100 54.02 5.07

41,92,45,782 113,76,46,887 2,43,33,247 3,41,87,826 179,34,23,868 1495095675 8,09,45,798

23.37 63.42 1.36 1.90 100 83.35 4.51

COMMENTS ON COMMON SIZED BALANCE SHEET 1) The share capital over the three years period has remained the same which shows that there is neither fresh issue of shares nor redemption of shares. 2) The reserves and surplus of Bank of India increased in the financial year 31-3-2008/31-3-2009 from 5.7% to 5.80% which seems to be a good sign as it indicates reinvestment of profits but the reserves have shown a downward trend in the period from 31-3-2009/31-3-2010 i.e. the next financial year from 5.80% to 5.02% which is not a good sign as it indicates withdrawal of profits. 3) The borrowed funds show upward trend from 31-3-2008 by 4% to 31-3-2009 by 6.93% & finally to 8.09% for the year ended31-3-2010 in relative terms which does not seem to be a good sign for the bank as it indicates that the debt servicing cost will increase. 4) The Fixed Assets of Bank of India has declined in relative terms from 1.36% (31-3-08) to 1.13% (31-3-09) to 0.85% (31-3-10) which may be because of depreciation or sale.
42

Bank of India to raise up to Rs 10,286 cr

Press Trust of India / Mumbai August 12, 2010 Public sector lender Bank of India (BoI) today said its board has approved raising up to Rs 10,286 crore through Tier-I and Tier-II capital. BoI, in a filing to the Bombay Stock Exchange, said the capital would be raised "through issuance of equity shares, innovative perpetual debt instruments, preference shares, Tier II bonds and upper Tier II Capital Bonds". Meanwhile, the state-owned bank has also raised interest rates on certain maturities effective from today. It raised interest rates to 7 per cent from 6.5 per cent for deposits less than Rs 1 crore and maturity period of one year to less than 2 year. For deposits above Rs 1 crore, the interest rate is raised to 7 per cent from 6 per cent. The maximum increase in interest rate to 5.5 per cent from 3.5 per cent has been for deposits above Rs 1 crore with maturity between 91 days and 179 days. However, for deposits less than Rs 15 lakh and maturity of 8 years and above, the rate has been lowered to 7 per cent from 7.5 per cent earlier.

43

Bank of India announces festival offer

[Source: mint, 9th Sept.2010-Thursday] Bank of India has announced a festival offer. This festival offer is valid till December 31, 2010 .It offers home loans and auto finance loans sanctioned during this period. The concession in rate of interest on home loans varies from 0.50% to a maximum of 2.00 %. Auto finance concession in rate of interest ranges between0.50% to 1.25%. For home loans, the rates will be as low as 8.50% (fixed upto December 31, 2011) and floating thereafter. In addition 50% concession in processing charges is also being offered. For auto finance loans, it is 9.75% p.a (fixed upto December 31, 2011)and floating thereafter.

44

Bank of India, Reliance MF tie-up

Bank of India has signed an agreement with Reliance Mutual Fund for a distribution of mutual funds. Under the agreement, the bank will distribute Reliance MF's products through its over 3,000 strong branch network, said a press release issued by the bank. Mr M. Narendra, Executive Director, Bank of India, said it is one more product for the bank's customers. Currently, Bank of India has a network of over 600 ATMs, a customer base of over 34 million and a business mix of more than Rs 3,62,000 crore.

Bank of India's mobile-based remittance facility

Bank of India recently launched mobile-based remittance facility through business correspondents, whereby remitters can send remittance to their relatives over mobile. Recipients can collect their money from the business correspondents engaged by the bank. The bank is also looking to include one crore unbanked people in its fold, for which it will reach to about 30,000 villages in the next three years. It is also targeting credit outlay of Rs 11,500 crore to approximately 66 lakh households and insurance coverage for the account holders under group insurance scheme.

45

PRIMARY DATA

PRIMARY DATA FROM FOLLOWING BRANCHES:

1) 2) 3) 4)

BHAYANDER BRANCH MIRA ROAD BRANCH MALAD BRANCH KANDIVALI BRANCH

Questionnaire

1) 2) 3) 4) 5) 6) 7)

When was your branch established? Who was the first branch manager? What was the turnover and operating profit of your branch for the year ended 2009- 10? How do you meet the requirements of busy customers during peak hours? How do you handle your dissatisfied customers? Has your branch experienced any cases of fraud? Which category of customers do you have more? Also state the rate of interest charged for each account? Customers No. of customers Interest Fixed deposit holders Saving account holders Recurring deposit holders Current account holders

8) Has your branch experienced any delay or non-payment of credit card dues? How do you tackle such problems? 9) What are the requirements for opening an account in your branch?

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10) What are the documents required for the following loans? What is the interest charged?

LOANS Housing loans

REQUIREMENTS

INTEREST

Education loans

Personal loans

11) Do you feel grooming of personality of an employee is important? Has it helped your branch in any way? 12) How many employees are working in your branch currently? 13) What are the retirement benefits provided to an employee by your branch? 14) Does your branch outsource the payment of retirement benefits to insurance companies? Which? 15) How is training provided to your employees (new &existing employees)? 16) How do you recruit new employees? 17) Who works best - Experienced or a newly employed person with little or no experience? 18) Do your customers prefer online banking? Why? 19) Indians dont prefer online banking .What is your opinion? 20) Does the bank hold adequate insurance cover for cash deposits?

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When was your branch established?

BHAYANDER MIRA ROAD KANDIVLI MALAD 27th AUGUST,1973 11th FEBRUARY,2003 1971 23rd MARCH, 2005

Who was the first branch manager? Bhayander - Mr.Vyarharar Mira road - Mr. H .Chitnis Kandivli - ? Malad - Mr. Sundaram

What was the turnover and operating profit of your branch for the period ended 2009-10?

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Operating profit 8.15 Cr Turnover 236.24 Cr

Bhayander

How do you meet the requirements of busy customers during peak hours? BHAYANDER:We have different departments/ counters manned by experienced staff who render different services to different people even during peak hours. Mira road: opening extra counters especially in the cash department & assignment of staff member to clear the doubts of customers by MAY I HELP YOU counter asking the staff to clear the doubts regarding balance/ clearing at any cause. Kandivli: MAY I HELP YOU counter. Education/Knowledge of various other products to ease the queries during peak hours Malad: Asking the staff to clear the doubts regarding balance/ clearing at any cause. To clear the doubts of customers by MAY I HELP YOU counter

How do you handle your dissatisfied customers? Bhayander: Through counseling & rendering best of our services. Mira road: Deal promptly to our best. Dissatisfaction to the least Kandivli: Hearing problems/queries through RSM/MAY I HELP YOU counter and
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resolving the same at the earliest. Malad: Try to help the customers by solving their problems

Has your branch experienced any cases of fraud? Bhayander: Yes Mira road: Major fraud least. Minor aping of signature, taking cash from cash counter Kandivli: No Malad: --------

Which category of customers do you have more? Also state the rate of interest charged for each account?

RATE OF INTEREST FIXED DEPOSITS

BHAYANDER

7%

MIRA ROAD

7.2 5%

KADIVLI

6%- 8%

MALAD

7.25%

SAVINGS DEPOSIT
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MIRA ROAD

KANDIVLI

BHAYANDER

MALAD

3.5%

RECURRING DEPOSITS

BHAYANDER MIRA ROAD KANDIVLI MALAD

7% 7.25% 6%-8% 7.25%

Has your branch experienced any delay or non-payment of credit card dues? How do you tackle such problems?

Bhayander: Yes .through constant follow-up &recovery agents. Mira road: We call the customers for atleast 3-4 months. If still the customer dosent reply his card is hot listed. We go for recovery too. Still we wait for 3 years and then treat it as NPA. Kandivli: Yes personal or telephonic talks with the customer to regularize the account / credit card. If not regularized card is hot listed and necessary steps initiated for recovery. Malad: We call the customers for atleast 3-4 months. If still the customer dosent reply his card is hot listed. We go for recovery too. Still we wait for 3 years and then treat it as NPA.

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What are the requirements for opening an account in your branch? Bhayander: ID proof, Address proof, photograph. Mira road: ID, PAN CARD ,address proof ,2 documents (agreement ,NOC ,telephone bill , maintenance bill),& any person having account in any BANK OF INDIA BRANCH acting as witness should be personally present while opening an account. Kandivli: Compliance with KYC norms, introduction Malad: ID, PAN CARD ,address proof ,2 documents (agreement ,NOC ,telephone bill , maintenance bill),& any person having account in any BANK OF INDIA BRANCH acting as witness should be personally present while opening an account. What are the documents required for the following loans? What is the interest charged? Documents Bhayander Mira road Kandivli Malad

Housing loan

deed of land & building,registration receipt,lawyers opini on,valuation report, salary slip& IT return.

4-3 yrs IT return,3mths salary slip,PAN CARD, residence proof, guaranter depending on quantum of loan agreement.

original sale agreement duly stamped and registered.3 yrs IT return or guaranter(if necessary)

4-3 yrs IT return,3mths salary slip,PAN CARD, residence proof, guaranter depending on quantum of loan agreement.

Educational loan

copies of testimonial, photograph,rank card, admission proof.

parents should be coborrowers,student should have 60% atleast in SSC,HSC exam salaried person person having permanent business.

confirmation of admission and other stamped/unsta mped documents parents-co -borrowers high networth genuine requirement

parents should be coborrowers,student should have 60% atleast in SSC,HSC exam salaried person person having permanent business.

Personal loan

salary slip/IT return, securities as per banks norms.photograph, guaranter,PDC(post dated cheques)

HOUSING LOANS

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BHAYANDER

9%-10%

MIRA ROAD

9.25%

KANDIVLI

8%- 9.25%

MALAD

9.5%

EDUCATION LOANS

BHAYANDER
Upto Rs.4 lakhs 11.5%

Mira road

11.5%

Kandivli

10% - 12 %

Malad
above Rs.4 lakhs 12%

11.5%

PERSONAL LOANS

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Mira road Bhayander Malad

12.5%

Do you feel grooming of personality of an employee is important? Has it helped your branch in any way?

Bhayander: Yes, yes a lot. Mira road: Yes, but not practiced in our branch. It will be useful as good relationship is maintained with the customer. Kandivli: Yes, grooming helps in marketing of bank products/ developing relationship beyond banking Malad: Yes, It helps in maintaining good relationship with the customer

NO. OF EMPLOYEES WORKING

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BHAYANDER 42

MIRA ROAD 22

KANDIVLI 40

MALAD 15

What are the retirement benefits provided to an employee by your branch? Bhayander: PF, GRATUITY, PENSION. Mira road: Relative Pension given with medical facility even spouse included. Other schemesPF/gratuity/PL etc Kandivli: Gratuity, PF, Voluntary medical scheme for retired employees Malad: Relative Pension given with medical facility even spouse included. Other schemesPF/gratuity/PL etc

Does your branch outsource the payment of retirement benefits to insurance companies? Which? Bhayander: No Mira road: No a person has to open a pension account and every month the money is credited to his account. Kandivli: No Malad: No a person has to open a pension account and every month the money is credited to his account.

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How is training provided to your employees (new &existing employees)? Bhayander: New employees: - basic banking course Existing employees:-training of different banking products like deposits, Advances, customer services, third party products etc. Mira road: At Zonal Level, depends on departments. Kandivli: Various training programmes through MDI institutes Malad: At Zonal Level, depends on departments.

How do you recruit new employees? Bhayander : Through written test and interview, GD is conducted if board decides. Mira road: Graduates, exams, test Kandivli: Advertisements, written tests, interviews, merit Malad: Graduates, exams, test.

According to you who works best - Experienced or a newly employed person with little or no experience? Bhayander: Both are considered to be the best provided the bank is benefitted from their experience , idea & knowledge. Mira road: Experienced employee knows all the customers and so there is a good rapo between the two. No difficulty in handling customers. New employee is also good but customer handling is difficult. Has to consult senior frequently
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Kandivli: Experienced employed person is no doubt better than newly employed as they have developed personal relations. Newly employed are to be trained to achieve adequacy in the banking transactions Malad: Experienced employee knows all the customers and so good rapo between the two no difficulty in handling the customers whereas new employee has to consult seniors frequently

Do your customers prefer online banking? Why? Bhayander: Yes, this is cost effective and time saving. Mira road: Very few / no technical knowledge Kandivli:Yes Quick easy transactions, e-payment for bills , electricity , telephone Malad: Yes for viewing the transactions of their accounts and making transfers from their account to other account like online booking of tickets, electricity bill etc

Indians dont prefer online banking .What is your opinion? Bhayander: Indians are lagging behind in online banking. But as the trend has witnessed a transition customers have become computer savvy and have started using online banking. Mira road: Not aware. It depends on area and current account &NRE account holders use it frequently. Used more in urban areas Kandivli: Todays generation prefer online banking for quick, easy transactions Malad: Young Indians prefer online banking for viewing and making transfers from their accounts

Does the bank hold adequate insurance cover for cash deposits? Bhayander: Yes Mira road: ----57

Kandivli: Yes Malad: Yes; approx.2.5%

CONCLUSION

The bank is working towards building a sustainable, growing and a vibrant enterprise that is smart, efficient, technology and knowledge driven and that which meets the aspirations of its customers. The bank has declared a dividend at the rate of Rs.7 per share.

Though the bank has received several accolades and recognitions, the events of the last two years have taught it the uncertainties of the future. It is this lesson that helped the bank to take some hard decisions and initiate several initiatives that will bear fruit in the future. As a Bank, it is committed towards building a sustainable, growing and a vibrant enterprise that is smart, efficient, technology and knowledge driven and that which meets the aspirations of its customers at large.

The bank is presently operating in exceptionally challenging times. Times that require making a skillful choice in strategy, its timely implementation, maturity in leadership and a work force that is committed to the Institution. Still the bank enjoys this in ample measure.

It received excellent directions from the Board, and it fully complied with the regulations of the Reserve Bank of India and the policies of Government of India. Above all, the entire rank and file of the Bank was fully committed in meeting the requirements of its valued customers.

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The Bank undertakes Internal Capital Adequacy Assessment Process (ICAAP) on a yearly basis for assessment/measurement of various risks, the limits of its risk-bearing capacity and appropriate level of internal capital in relation to the risks and the Risk Appetite.

The bank has various committees which helps in its proper functioning and meet the mission vision and its quality policy. The various committees are: Management Committee of the Board, Audit Committee of the Board, Risk Management Committee, Share Holders'/Investor's Grievances Committee, Committee for Customer Service.

BIBLIOGRAPHY:
1)BOOKS REFERRED Bank of India annual report 2010-2011 2)MAGAZINES REFERRED: PROFESSIONAL BANKER BANK QUEST 3) WEBSITES: http://www.bing.com/images/search?q=E http://www.bankofindia.com.hk/ http://www.bankofindia.com/ http://www.indiacatalog.com/cgi-bin/redirect_url.pl?url=http://www.stcionline.com/ http://burnyourfuel.com/My_Files/Hyundai/MOU/Hyundai-MoU-Bank%20of%20India.jpg http://www.wikinvest.com/image/MS_by_Deposit.JPG 4)PRIMARY DATA COLLECTION

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Sr. no 1 2 3 4

Branch MIRA ROAD MALAD KANDIVALI BHAYANDER

Date of visit 13/8/10 16/8/2010 20/8/2010 3/9/2010

Name of Person interviewed SUJAYA JOHNSON GEETA PADWAL SMITA KANCHAN L.D.PANDA

Telephone no. 9867364666 9323990291 9869657119 9867186760

5)NEWS PAPER CLIPPINGS: HINDUSTAN TIMES TIMES OF INDIA ECONOMIC TIMES MINT DNA

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