A Study On
A Study On
A Study On
ACADEMIC SESSION
2009-2011
Submitted By:
Sachin Gupta
Roll No. : BM-09178
Under the Guidance of :
External Supervisor: Internal Supervisor:
Mr. K.C.Nama Dr. Vidya sekhri
Senior Branch Manager Area Chairperson-Finance
Bank Of India, Nayapura(kota) IMS, Ghaziabad
I
A STUDY ON
“ RETAIL FINANCE IN BANK OF INDIA”
At BANK OF INDIA, KOTA
ACADEMIC SESSION
2009-2011
Submitted By:
Sachin Gupta
Roll No. : BM-09178
Under the Guidance of :
II
DECLARATION
I hereby declare that the work which is being presented in the report: entitled
RETAIL FINANCE IN BANK OF INDIA in partial fulfillment of the requirement
for the award of the Post Graduate Diploma in Management and submitted to the
BANK OF INDIA is an authentic record of my own work carried out during a period
from May 2010-to- June 2010 under the supervision of my corporate guide MR.
K.C.NAMA (SENIOR BRANCH MANAGER) & DR. VIDYA SEKHRI
(PROJECT MENTOR). I have not submitted the matter presented in this report for
the award of any other degree or diploma.
III
CERTIFICATE
This is to certify that the work, which is presented in the report entitled “RETAIL
FINANCE IN BANK OF INDIA”, has been carried out by SACHIN GUPTA in
partial fulfillment for the report of summer internship of Post Graduate Diploma in
Management-IT of first year. This report is original and has not been submitted in part
or full to any other university for any other degree or diploma.
This is to certify that the above statement made by the candidate is correct to the best
of my knowledge.
IV
ACKNOWLEDGEMENT
Perseverance, inspiration and motivation have always played a key role in the
success of any venture. A successful and satisfactory completion of any project is the
outcome of the invaluable aggregate contribution of different persons fully in radical
direction, explicitly or implicitly.
Whereas vast, varied and valuable reading efforts leads to substantial
acquisition of knowledge via books and allied information sources. True expertise
excludes from collateral practical works and experiences.
Words have never seemed as inadequate as now, when we are endeavoring to
express our heartfelt gratitude at the culmination of the project, to all those made it
possible. Even the best effort is waste without proper guidance and advice. We highly
solicit Shri K.C.Nama for launching us into this foray. At the same time we are
indebted to Shri Hariram Meena & Shri B. l. Meena for giving time-to-time
suggestion and their valuable guidance, co-operation, inspiration and keen
supervision to our project.
Thanks to other persons who have been the part & important assets of this
Journey of Bank of India Nayapura, Kota Shri Mukesh Mehra (C.T.O), Shri Prithvi
Singh (CTO), Shri RamnarayanJi, Shri NandlalJi (Nandu Bhaiyya), Shri Rajendra
Singh.
People always say that I am an agnostic kind of person but here I want to
express gratitude towards my god. Thanks & love to my mother who is like god to me.
This pure work is whole-heartedly dedicated to her from whom I acquired the quality
of honesty & hard work.
At the same time we are indebted to Mr. Bill gates that provided us great
software as Microsoft office without the help of which this work could not be possible.
V
ABSTRACT
This project is based on the study of retail credit where most of the focus is on the
demand loan. Retail banking is quite broad in nature - it refers to the dealing of
commercial banks with individual customers, both on liabilities and assets sides of the
balance sheet. Fixed, current / savings accounts on the liabilities side; and loans e.g.,
personal, housing, car, and educational, on the assets side are the more important of
the products offered by banks.
“Retail banking is typical mass-market banking where individual customers use local
branches of larger commercial banks. Services offered include: savings and checking
accounts, mortgages, personal loans, debit cards, credit cards, and so”
The Retail Banking environment today is changing fast. The changing customer
demographics demands to create a differentiated application based on scalable
technology, improved service and banking convenience. Higher penetration of
technology and increase in global literacy levels has set up the expectations of the
customer higher than never before. Increasing use of modern technology has further
enhanced reach and accessibility.
Banks, today, offer a range of retail asset products, including home loans, automobile
loans, personal loans (for marriage, medical expenses etc), credit cards, consumer
loans (such as TV sets, personal computers etc) and, loans against time deposits and
loans against shares. Banks also may fund dealers who sell automobiles, two
wheelers, consumer durables and commercial vehicles. The share of retail credit in
total loans and advances was 21.3% at end-
March 2009.
Awareness of people towards the different types of loan offering by the banks in the
rural areas is quite low due to that they still prefer the money lender as well as the
documentation procedure is time consuming and difficult to understand by the rural
people.
VI
Both public & Private sector banks are catering to the need of the customer.
At the one hand Public sector banks are ensuring the customer that their money is safe
in safe in governments hand. Private sector bank are giving a hard competition to the
public sector by giving fast services and multifaceted services to the customer.
In this study we are trying to find out the factor on the basis of which the performance
of bank can be adjudged. The factor, which generally affects the banking system, is
generally being discussed in the study.
VII
ABBREVIATION
VIII
TABLE OF CONTENT
S.NO. TITLE PAGE NO.
1 Candidate declaration III
2 Certificate IV
3 Acknowledgement V
4 Abstract VI
Abbreviation VIII
5 Table of content VIIII
6 List of figures XI
7 List of tables XII
CHAPTER-1 Introduction of bank 1
1.1 Distinction between bank & moneylender 2
1.2 Role of banking 3
1.3 Types of bank 4
1.4 Function of commercial bank 8
1.5 E-banking 10
CHAPTER-2 Justification 12
CHAPTER-3 Literature review 13
CHAPTER-4 Company profile 15
4.1 History & present 13
4.2 Some milestones 16
4.3 CMD since nationalization 18
4.4 BOI’s vision, mission, quality policy 19
4.5 Highlights for the year ended march 2010 19
CHAPTER-5 Objective of study 21
CHAPTER-6 Research methodology 22
IX
S.NO. TITLE PAGE NO.
CHAPTER-7 Data analysis 24
7.1 Profit & loss a/c 24
7.2 Balance Sheet 26
7.3 BOI comparative study of 2009 & 2010 28
7.4 Branches & ATM (Comparison with other bank) 29
7.5 Highlights of bank performance 31
7.6 Branches profitability ratio 32
7.7 Employee profitability ratio 34
7.8 Annual policy statement of RBI 35
7.9 CASA ratio 37
7.10 CD ratio 40
7.11 Net interest margin 40
7.12 Total business 41
7.13 Total deposit 41
CHAPTER-8 Ratio analysis 45
8.1 Capital adequacy ratios 40
8.2 Asset ratios 47
8.3 Management ratios 49
8.4 Earning ratios 50
8.5 Liquidity ratios 52
CHAPTER-9 CAMEL RATING 64
Findings 54
CHAPTER-10 Conclusion 66
Recommendation 67
Limitation 67
Bibliography 68
X
LIST OF FIGURES
XI
LIST OF TABLES
XII
31 Table 31: Management ratios 59
32 Table 32 : Earning ratios 61
33 Table 33 : Liquidity ratios 62
34 Table 34: camel rating 64
XIII