CHAPTER - I

INTRODUCTION

Bank:

A bank is a financial institution licensed to receive deposits and make loans.Banks may
also provide financial services such as wealth management, currencyexchange and safe deposit
lockers. There are several different types of banks including retail banks, commercial or
cooperative banks, investment banks. In most countries, banks are regulated by the national
government or central bank.

The bank is either derived from the old Italian world “BANCO” or from aFrench word
“BANQUE” both mean a bench or money exchange table. In oldendays, European money
lenders or money changers used to display (show) coins of different countries in big heaps
(quantity) on benches or tables for the purposeof lending or exchanging.

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Definition:

According to Walter Leaf, “A bank is a person or corporation which holdsitself out to

receive from the public deposits payable on demand by cheque.”

According to Horace White, “Bank is a manufacturer of credit and machinefor facilitating

exchanges.”

According to W. Hock, “Bank is such an institution which creates money by money

only.”

According to Jhon Pagette, “Bank is such a financial institution which collects money
in current, savings or fixed deposit account; collects cheques as deposits and pays money from
depositors account through cheques.”

According to P A Samuelson, “Bank provides service to its clients and in turn receives
perquisites in different forms.”

According to Cairn Cross, “Bank is a financial intermediary institution which deals in

loans and advances.”

According to R.P. Kent, “Bank is an institution which collects idle moneytemporarily

from the public and lends to other people as per need.”

History of bank:

Banking is considered to be the “Backbone of a Nation’s Economy.” The Indian Banking,

today, is divided into commercial banks which are private, publicscheduled and non-scheduled
banks, Regional and Rural, Cooperative Banks. Banking Companies Act of 1949 defined
banking as accepting for the purpose oflending or investment of depositing money from the
public, repayable on demandor otherwise and withdrawable by cheque draft or otherwise. Let
us learn more about the History of Banking System in India.

The Banking sector in India has seen a lot of transitions and changes over the centuries.

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It can be broadly categorized into 3 sub-parts. They are:

1. Pre-Independence (Before 1947)

2. II Phase (1947 to 1991)

3. III Phase (1991 and beyond)

Pre-Independence Period (1786-1947):

The first bank of India was the “Bank of Hindustan”, established in 1770 and located in
the then Indian capital, Calcutta. However, this bank failed to workand ceased operations in
1832. During the Pre-Independence period over 600 banks had been registered in the country,
but only few managed to survive.

Following the path of Bank of Hindustan, various other banks were established in India.

They were:
• The General Bank of India (1786-1791)

• Oudh Commercial Bank (1881-1958)

• Bank of Bengal (1809)

• Bank of Bombay (1840)

• Bank of Madras (1843)

During the British rule in India, The East India Company had established three banks:
Bank of Bengal, Bank of Bombay and Bank of Madras and called them the Presidential Banks.
These three banks were later merged into one singlebank in 1921, which was called the “The
Imperial Bank of India” was later nationalized in 1955 and was named The State Bank of India,
which is currently the largest public sector Bank.

Given below is a list of other banks which were established during the Pre-Independence
period.

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 Name of the Bank Year of Establishment

Allahabad Bank 1865

Punjab National Bank 1894

Bank of India 1906

Central Bank of India 1911

Canara Bank 1906

Bank of Baroda 1908

The reasons as to why many major banks failed to survive during the Pre-
Independence period, the following conclusions can be drawn:

• Indian account holders had become fraud-prone

• Lack of machines and technology

• Human errors & Time-consuming

• Fewer facilities

• Lack of proper management skills

Post-Independence Period (1947-1991):

At the time when India got Independence, all the major banks of the countrywere led
privately which was a cause as the people belonging to rural areas were still dependent on
money lenders for financial assistance.

With an aim to solve this problem, then the Government decided to nationalize the
Banks. These banks were nationalized under the Banking Regulation Act, 1949. Whereas, the
Reserve Bank of India was nationalized in 1949.

Seven banks forming subsidiary of State Bank of India were nationalized on 19th July
1959. In 1969, major process of nationalization was carried out. It was the effort of the
Prime Minister of India, Mrs. Indira Gandhi 14 major commercial banks in the country was
nationalized. These were the banks whose national deposits were more than 50 crores.

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 Seven subsidiaries of SBI which were nationalized in 1959:

• State Bank of Patiala

• State Bank of Hyderabad

• State Bank of Bikaner & Jaipur

• State Bank of Mysore

• State Bank of Travancore

• State Bank of Saurashtra

• State Bank of Indore

Banking sector after 1991:

In 1991, The Narasimahmam Committee report suggested far reaching reforms in the Indian
Banking sector. These included a phased reduction in the SLR and CRR as well as accounting
standards, income recognition norms and capital adequacy norms.
Guidelines for the establishment of private sector banks issued. This heralds a new policy
approach aimed at fostering greater competition.
In 1995, banks are allowed to fix their own interest rates on domestic term deposits with
maturity of two years.
In 1999 RBI issued guidelines for debit cards and smart cards to ease pressure on physical
cash.
After 2000 to still now the bank was emerging with new technologies and various advanced
facilities.

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Reserve Bank of India:

The Reserve Bank of India (RBI) is India’s central bank and regulatory bodyunder the
jurisdiction of Ministry of Finance, Government of India. It is responsible for the issue and
supply of the Indian rupee and the regulation of theIndian banking system. It also manages the
country’s main payment systems andworks to promote its economic development. Bharatiya
Reserve Bank Note Mudran is one of the specialized divisions of RBI through which it mints
Indian bank notes and coins. RBI established the Payments Corporation of India as of its
specialized division to regulate the payment and settlement systems in India. Deposit Insurance
and Credit Guarantee Corporation was established b RBI as one of its specialized divisions for
the purpose of providing insurance of depositsand guaranteeing of credit facilities to all Indian
banks.

Until the Monetary Policy Committee was established in 2016, it also had full control
over monetary policy in India. It commenced its operations on 1 April1935 in accordance with
the Reserve Bank of India Act, 1934. The original share

capital was divided into shares of 100 each fully paid. Following India’s independence on 15
August 1947, the RBI was nationalized on 1 January 1949.

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 The overall direction of the RBI lies with the 21-member central board of directors,
composed of: the governor, four deputy governors, two finance ministry representatives
(usually the Economic Affairs Secretary and the Financial Services Secretary), ten government-
nominated directors, and four directors who represent local boards for Mumbai, Kolkata,
Chennai and Delhi. Each of these local boards consists of five members who represent regional
interests and the interests of co-operative and indigenous banks. As of March 2021, the
governor of the Reserve Bank of India is Mr. Shaktikanta Das. He is the 25th RBI Governor and
all the RBI functions are supervised by him.

Functions of RBI:

1. Issue of Bank Notes:

The Reserve Bank of India has the sole right to issue currency notes except one-
rupee notes which are issued by the Ministry of Finance. Currency notes issued by the
Reserve Bank are declared unlimited legal tender throughout the country.
This concentration of notes issue function with the Reserve Bank has a number of
advantages:
• It brings uniformity in notes

• It makes possible effective state supervision

• It is easier to control and regulate credit in accordance with the requirements in

the economy

• It keeps faith of the public in the paper currency.

2. Banker to Government:

As banker to the government the Reserve Bank manages the banking needs of the
government. It has to maintain and operate the government’s deposit accounts. It
collects receipts of funds and makes payments on behalf of the Government of India as
the member of the IMF and the WorldBank.

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3. Custodian of Cash Reserves of Commercial Banks:

The commercial banks hold deposits in Reserve Bank and the latter hhave the
custody of the cash reserves of the commercial banks.

4. Custodian of Country’s Foreign Currency Reserves:

The Reserve Bank has the custody of the country’s reserves of international
currency, and this enables the Reserve Bank to deal with crisisconnected with adverse
balance of payments position.

5. Lender of Last Resort:

The commercial banks approach the Reserve Bank in times of emergency to tide
over financial difficulties, and the Reserve bank comes to their rescue though it might
charge a higher rate of interest.

6. Central Clearance and Accounts Settlement:

Since commercial banks have their surplus cash deposited in the Reserve Bank, it
is easier to deal with each other and settle the claim of each on the other through book
keeping entries in the books of the ReserveBank. The clearing of accounts has now
become an essential function of the Reserve Bank.

7. Controller of Credit:

Since credit money forms the most important part of supply of money,and since the
supply of money has implications for economic stability, theimportance of control of
credit becomes obvious. Credit is controlled by the Reserve Bank in accordance with
the economic priorities of the government.

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Types of Banks:

Public sector or Nationalized banks:

Public sector banks or nationalized banks are those in which the government has
retained a majority of its share with the primary aim of public interest. In this the government
holds more than 50% of the total stock. The government formulates all the financial guidelines
for the public sector banks. Itoperates under the government to inspire trust in the depositors
that their money is safe.

India’s biggest public sector bank is the State Bank of India. Besides working in public
interest, nationalized banks in India also earn huge profits.

After independence, the government of India started the nationalization ofthe Imperial
Bank of India in 1955 to enter the banking business. The Reserve Bank of India took 60% of
the share and renamed it the State Bank of India.

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 In 1969, the government of India nationalized 14 more banks. In the last decade of the
20th century, the public sector banks achieved huge growth. Many political changes in the early
21st century affected the growth of the public sectorbanks, and these banks reported huge losses.
In 2002-2003, these banks returnedto the growth track and posted a profit of ₹7780 crores.

The Indian government merged ten public sector banks into four to restructure them and
optimize functionality, significantly increasing profits. TheState Bank of India is one of the
biggest banks in India and worldwide.

Public sector banks in India:

There are 12 public sector banks in India currently. Listed below are all theIndian public
sector banks with their headquarters and year of establishment.

Bank Headquarters Year of

establishment

Bank of Baroda Vadodara, Gujarat 1908

Bank of India Mumbai, Maharashtra 1906

Bank of Maharashtra Pune, Maharashtra 1935

Central Bank of India Uttar Pradesh 1911

Canara Bank Bengaluru, Karnataka 1906

Indian Bank Chennai, Tamil Nadu 1907

Indian Overseas Bank Chennai, Tamil Nadu 1937

Punjab National Bank New Delhi, Delhi 1894

Punjab and Sind Bank New Delhi, Delhi 1908

State Bank of India Mumbai, Maharashtra 1955

Union Bank of India Mumbai, Maharashtra 1919

UCO Bank Kolkata, West Bengal 1943

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Advantages of Public sector banks:

• Deposits offer a high-interest rate

• Loans with low-interest rate

• Employees have complete job security

• Employees are also eligible for a pension upon retirement

• Provides services to the rural areas of the country

• Provides financial services through multiple branches

Disadvantages of Public sector Banks:

• At the management level, there is a large bureaucratic system

• Inability to make a major financial decision in a timely manner

• Customers receive less personalized service

• There have been far too many complaints about the employee’s poorservice
• The majority of public sector banks are embroiled in major corruptionscandals
• Customer default rate is high

• Banks in the public sector spend a lot of money on financial operations.

Functions of Public sector banks:

The public sector bank has travelled a long path since its inception in the country. With
the advancement of technology, core banking has been introducedin the country which has
spread to every nook and corner presently. It has made lot of things quite easier for both
customers and employees in the bank. The basic function of any public sector or private sector
bank is to mobilize the resources and capitals garnered through various deposits and schemes for
varied period lendthe same at higher rates of interest to its own customers in order to garner
more profit.

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 The bank also provides facilities like lockers, remittance, draft creation, cheque
collection and transfer, bank guarantee credit to its esteemed customers. It also offers insurance
and mutual fund plans to its customers along with providing loan schemes and savings of their
money.

Public sector banks as development entities:

It also acts as the body that carries the objective of the central governmentby providing
facilities to the people connected with the bank of the various government schemes, loans and
pensions. Recently the linking of lakhs of peoplewith bank accounts through the ‘Jan Dhan
Yojana’ programme is one such example of such objectives of the government, which needs to
be fulfilled by thebanks over requirement. It is also responsible for the collection of taxes and
carrying various developmental schemes for the underdeveloped. It is also responsible for
providing banking facility to the rural and sub-urban areas in orderto connect more and more
people with their individual bank accounts and increasebusiness of the banks. It is the reason
behind the increasing number of rural branches of such nationalized banks over the country.
The motif of public sectorbanks doesn’t always remain profit making, but they also see through
the developmental aspect of the region they are operating in.

Regulating authority:

The government of India regulates public sector banks under the Banking Companies
(Acquisition and Transfer of Undertaking) Act, 1970; the Bank Nationalization Act, 1980, and
the State Bank of India Act, 1955.

However, the RBI cannot remove chairpersons, managing directors of public sector
bank; the central bank cannot force a merger or liquidation in the case of the public sector
banks; the public sector bank neither require license fromthe top bank nor can it revoke their
license.

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 CHAPTER – II

ORGANIZATIONAL PROFILE

History of public sector bank in general:

When India attained Independence in 1947 it inherited a weak, desperate and unwieldy
banking structure. Other than the Imperial Bank of India, there were many Indian joint stock
banks, but they did not have adequate capital and due tounhealthy business practices 205 banks
went out of business between 1947 and 1951.

After Independence:
The Banking Companies Act 1949 was amended 10 times between 1950 and1967 in a bid
to strengthen the banking system. As a result, between 1960 and 1969 there were 48
compulsory mergers, 20 voluntary amalgamations, 17 mergers with State Bank of India, 125
transfers of assets and liabilities, all involving 210 banks. The number of banks was 567 in
1951, which came down to 295 in 1961 and finally to 91 in 1961.

Around one lakh primary agriculture credit societies can be regarded as the bedrock of
India’s rural economy. However, the credit societies have never attained the enormous potential
opened up by their vast outreach because of poorgovernance and political interference. While
they were originally supposed to bemember driven, democratic, self-governing, and self-reliant
institutions, Co- operatives have constantly depended on Government for their basic functions.
State Governments have become the dominant shareholders, managers, regulators, supervisors
and auditors. Savings and credit functions go together and provide strength to the co-operatives
all over the world which has been missing in India. Dominance of rich people and rural elite
continues in these institutions even today. Still, it is the state governments which have given
relief including write-off of loans during the crisis.

In furtherance of the objectives of regional and functional spread of banking,the social

orientation of commercial banking was conceived in the founding statutes of Reserve bank of
India itself which, as a pioneering provision, entrustedto it the responsibility of enlarging the
supply of agriculture finance through co- operative institutions or through scheduled
commercial banks.

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 On the basis of recommendations of the Rural banking enquiry committee (1950) for
involving commercial banks in rural credit, then the Imperial Bank of India agreed to open114
offices in rural and semi urban areas (against the recommended 274 branches)but could open only
63 branches in 5 years from July 1951. It was therefore thought that without the state’s
intervention, banking facilities could not be extended to such areas. Hence, the Imperial Bank
of India was bought under public ownership as State Bank of India from 1955 with the Central
Bank holding92% of its shares with statutory responsibility to establish at least 400 additional
branches within a 5-year period.

It not only fulfilled the target but also went beyond the targets. In September1959, major
state associated banks of princely states were taken over and vestedwith the State Bank of India
as subsidiaries numbering 7. Still weaknesses of thecommercial banking system, such as poor
population coverage of bank branches,deposits and credit, urban concentration, vast spectral
credit gaps, excess controlover banks by industrial and commercial houses, and an unduly poor
capital basecontinued. This led to a re-orientation of the banking system. Between 1965 and
1969 social control over commercial banks was brought in by the Government with the
following measures:

1. Introduction of the credit authorization scheme requiring banks to obtain prior

authorization for granting fresh credit limits of Rs.10 million or over to any
single party to align credit policy more closelywith the five-year plan objectives.
2. The initiation of social control scheme in 1968 with the objectives ofachieving a
wider spread of bank credit, preventing its misuse and directing a larger volume
of credit to priority sectors.
3. The statutory reconstruction of commercial bank boards with a majority
representation to informal sectors.
The decade 1955 to 1965 saw a series of steps towards building a strong institutional
structure for promoting medium term and long-term loans for industry and agriculture through
the public sector. These included the nationalization. It is only after nationalization, the State
Bank of India started implementing social objectives including branch expansion. IDBI played
a crucial role in Industrial development.

The oldest Public Sector Bank of India was Allahabad Bank. It was established in 1865.

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Organizational profile

Name of the organization: Indian Overseas Bank

Branch: Kuniyamuthur

Head office: Chennai

Working hours: 10.00a.m. to 5.00p.m.

Total staff: 8

This bank branch was located in Kuniyamuthur, Palakkad main road,Edayarpalayam

Pirivu, Coimbatore –641 008

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Staff Members:

Manager: Shibu CT

Assistant Manager: Kishore R

Indian Overseas Bank Logo:

IFSCODE of Indian Overseas Bank, Kuniyamuthur

IFSC code of Indian Overseas Bank, Kuniyamuthur branch is

IOBA0001747.

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History of Indian Overseas Bank:

On 10th February 1937, Thiru. M. Ct. M. Chidambaram Chettyar established the Indian
Overseas Bank in Madras. It was created to encourage overseas banking and foreign exchange
operations and to take the bank across theglobe. IOB started up simultaneously at three branches,
one each in Karaikudi, Madras, and Rangoon. It quickly opened a branch in Penang, Kuala
Lumpur, andanother in Singapore.

At the dawn of Independence IOB had 38 branches in India and 7 branchesabroad and
deposits stood at Rs.6.64 Crores and advances at Rs.3.23 Crores at that time. IOB was one of
the 14 major banks that were nationalized in 1969. Onthe eve of nationalization in 1969, IOB
had 195 branches in India with aggregatedeposits of Rs.67.70 Crores and advances of Rs.44.90
Crores.

In 2000, IOB engaged in an initial public offering (IPO) that brought the government’s
share in the bank’s equity down to 75%. In 2001 IOB acquired the Mumbai based Adarsha
Janata Sahakari Bank, which gave it a branch in Mumbai. Then in 2009, IOB took over Shree
Suvarna Sahakari Bank which was founded in 1969 and had its head office in Pune. Shree
Suvarna Sahakari Bank had been in administration since 2006. It had nine branches in Pune,
two in Mumbai and ne in Shripur. The total employee strength was estimated to be little over
100.

IOB opened an extension counter at New Kathiresan Temple complex, Bambalapitiya,

Sri Lanka on 29th August 2003.

In 2005 IOB opened a representative office in Guangzhou, China. The next year IOB
opened another office, this time in Kuala Lumper.

In 2007 IOB took over Bharat Overseas Bank. Then in 2009 IOB acquired Pune based
Shree Suvarna Sahakari Bank, which had been established in 1969, the bank had nine branches
in Pune, two in Mumbai and one in Shripur.

In 2009 IOB opened a representative office in Dubai, United Arab Emirates.

In 2010 Malaysia awarded a commercial banking license to a locally incorporated bank

to be jointly owned by Bank of Baroda, Indian Overseas Bank and Andhra Bank. The new
bank, Indian International Bank (Malaysia), commenced operations in 2012 in Kuala Lumper,
which has a large population of Indians.

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 Andhra Bank holds a 25% stake in the joint venture, Bank of Baroda owns 40%, and
IOB the remaining 30%.

Bank presently has its Overseas Presence in 4 countries – Singapore, Hongkong,

Thailand and Sri Lanka.

IOB opened an offshore Banking Unit in Colombo, Sri Lanka on 31 August 2013. The
bank also upgraded its existing Extension counter at Bambalapitiya into a full-fledged branch.

As of June 2023, IOB has 3222 branches, 3495 ATMs and 3322 business
correspondents across the country.

Milestones of IOB bank:

• 1957 – Bank established its own training centre

• 1964 – Inauguration of IOB's Head Office in Mount Road.
• 1969 - Nationalisation of the bank
• 1974 – Official Language Department established in 1974
• 1984 – 1000th branch opened
• 1991 – Bank moved its Staff College premises to a learning zone at Koyambedu
• 1996 – Banks profit reached INR 100 cr. for the first time i.e., USD16.69Mn [1USD=Rs.
59.9150]
• 2000 – Initial Public Offer. Follow on Public Offer in 2003.

-The first public sector bank to introduce anywhere banking at its 129 branches in the four metros, is
extending the connectivity to another 100 branches in Hyderabad, Bangalore, Ahmedabad and
Ludhiana
-The first public sector bank in the country to introduce mobile banking services using the Wireless
Application Protocol (WAP).

• 2005 – Launched Debit Card

• 2006 – Launched VISA Card, Retail Sale of Gold and Non-Life Joint Insurance Bank
reached INR 1 lac crore mark in Total Business

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• 2006 – 07 Net Profit reached INR 1000 Cr. (US$229.78 Mn) [1USD= Rs. 43.5200] Bharat
Overseas Bank Ltd. Was merged with IOB and First Offsite ATM at Kamatchi Hospital,
Chennai
• 2009 – 100% CBS
• 2010 – 2000th Branch -Yamuna Vihar, New Delhi-opened
• 2011-12 – No. of Branches in Tamil Nadu reached 1000, and IOB celebrated Platinum
Jubilee 2012–13. As on 31.3.2013, total deposits reached INR 202,135 cr.
(US$37,236Mn.) [1USD =Rs. 54.2850] As on 31.3.2013, Total Advances reached INR
164,366cr. (US$30,278 Mn.) As on 31.3.2013, Total Business Mix is at INR 366,501cr.
(US$67,514Mn.), Total No. of Branches 2908
• 2014-15 Bank has surpassed the landmark of 3000 ATMs as on 31.07.2014 – Tirumala
Patti Branch
• 2015 – IOB launched new Mobile Banking, m Passbook applications.
• 2015-IOB started migration from its in-house CBS platform to Finacle.
• January 2016- All branches migrated from in house CBS platform "CROWN" to
FINACLE.
• 2019- IOB was awarded the “Best Public Sector Bank” by Indian Banking Association
• 2021 December, 5th – IOB got Degidhan award by Ministry of Electronics & Information
Technology for achieving second highest percentage of digital payment transaction among
public sector banks
• 2022 March- Total business stands at RS.417,960 crore (US$52 billion)

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Branches of Indian Overseas Bank
It has about 3,220 domestic branches, 2 DBUs (Digital Banking Unit) about 4 foreign
branches and representative office.

Annur Aravind eye hospital

Avinashi CSI
Chinnathadagam Coimbatore big bazaar
Coimbatore district court Dr Nanjappa Road
Ganapathy Gandhipuram
Kaniyur Kurudampalayam
Nanjundapuram Oppnakara street
Peelamedu Ind R S Puram
Ramalinga nagar Uppilipalayampark square
Edayarpalayam Idigarai
Karamadai Karpagam college EC
Kollupalayam Komaralingam
Kotahgiri Kottur
Kovaipudur Kuniyamuthur
Kurichi Madampatti
Mettupalaym Road Ngm college pollachi
Palladam Pollachi
Powai Race course
Ramnagar Red fields branch
Roots industries EC Saravanampatti
Singanallur Sulur
Thennampalayam Thondamuthur
Tiruppur Udumalpet
Vadavalli Velampalayam
Vivekanandapuram Vadamadurai
Somanur Pappanaickenpalayam

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 CHAPTER – III
DEPARTMENT AND ITS FUNCTIONS

There are various departments operating in the banks in which the staffwork
efficiently and satisfies the needs of their customers for their betterment.

The departments in the bank are as follows:

1. SWO
2. Deposits
3. Jewel loan
4. Advances
5. Cash

1. SWO
SWO (Single Window Operator) is one of the clerical staff pf the bank. This
department provides receipts and cash payments and clears andpasses the cheque and
drafts. SWOs are categorized into two types: SWOsA and SWOs B.
Duties of SWO A:

• Delivery of the checkbook is subject to authorizationby the

competent authority.
• Concerns about cash receipts.
• Recounting of notes by cash department staff.
• Issue of ESI stamps in which the applicant may become
applicable.

• Receipt of dividend warrants, cheques, drafts, pay orders, and

instruments other than bills.

Duties of SWO B:

• Receipts of issuance and cash of gift cheque/pre-signeddrafts/pay

orders/traveler’s cheque/bank orders above 25,000.

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 • Cash payment of all withdrawal forms/cheques/gift
cheques/bankers’ cheques above 20,000.
• Clearing and transferring vouchers, cheques, etc., above25,000.

2. Deposits:

Following are the types of FD schemes offered by IOB:

• Reinvestment deposits

• IOB 80 Plus term deposits

• Varadhan – Deposit for Senior Citizens

• Tax saver scheme

• Floating Rate deposits

• Special fixed deposit

• Multiple Deposit plan I

• Multiple deposit plan II

• IOB Saral

• IOB Suvidha

• NRO Tax saver

• Unfixed deposit

Reinvestment deposit:

IOB’s reinvestment deposit allows the depositors to reinvest the interest into the existing
deposit. Furthermore, it helps in increasing th3e corpus. The interest on deposits also earns
interest. In other words, the scheme works with a compounding effect. The minimum deposit
amount should be INR 1000. Depositors can close the FD without any penalty. The offers the
renewal of the deposit scheme.

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IOB 80 Plus Term Deposits:
The scheme is specially designed for Super Senior Citizens (SSC) of India. IOB
recognizes citizens above the age of 80 years or more as SSC. Also, IOB offers higher rates for
super senior citizens (an extra 0.075%). The tenure of thisdeposit is 6 months to 120 months.
The minimum deposit amount is INR 1,000 and the maximum is INR 1 crore. The depositors
of this scheme can avail loan up to 90% of the deposit amount.

IOB Varadhan:
The Varadhan scheme is a senior citizen fixed deposit scheme. The scheme offers
preferential interest rates for the depositors. An additional 0.050% interest is applicable for this
scheme only for the residents of India. The tenure is 15 days to 120 months. The minimum
deposit amount is INR 5,000. Loans can be availedagainst FD. The scheme provides the free
international debit cards to the depositors.

IOB Tax saver scheme:

The scheme offers tax benefits on deposits for individuals residing in India.The tax saving
scheme deposits qualify for tax deductions under Section 80C of Income Tax Act. The tenure
is 5 years to 10 years. The minimum deposit amountis INR 10,000 and the maximum is INR
1,50,000.

IOB Floating Rate Deposit:

Under the floating rate deposit scheme, the interest rates keep changing. The interest is
computed on updated IOB FD rates and not on the rate prevailingat the time of buying the FD.
The interest rates are reset once every six months. The bank also gives an option to convert
from an existing fixed-rate deposit to a floating rate deposit scheme. The minimum deposit
amount is INR 1,00,000.

Special Fixed Deposit:

This FD is eligible for depositors who seek a regular monthly or quarterly interest
income. This scheme is more suitable for senior citizens and pensioners.The minimum deposit
amount is Rs.3,000. The minimum invest period is 6 months and the maximum investment
period is to 120 months. The interest is paidmonthly and quarterly.

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Multiple Deposit Plan I:
Individuals including salaried professionals, business people, etc., are eligible. The
minimum deposit amount is Rs.100 and in multiple of Rs.5. The minimum investment period
is 6 months and the maximum period is 12 months.The interest is paid quarterly compounding
and paid at the time of maturity.

Multiple Deposit Plan II:

Individuals either singly or jointly with two or more persons, institutions, companies,
firms, societies, traders, professionals, salaried individuals, etc., are eligible. The minimum
deposit amount is Rs.10,000 and in multiple of Rs.1,000.The minimum investment period is 6
months and the maximum period is 120 months. The interest is paid quarterly compounding
and paid at the time of maturity.

IOB Saral:
IOB Saral scheme offers a facility to withdraw part of the deposit amount and continue
the scheme with the contracted rate of interest. The minimum deposit amount is INR 10,000
and has no maximum limit. The scheme tenure ranges from 1 year to 10 years.

IOB Suvidha:
The Suvidha scheme comes with cash credit facility. A CC account is opened
automatically with IOB Suvidha scheme. Once the deposit matures, the proceeds are to be
credited to CC account only.

IOB NRO Tax Saver:

The tenure is 5 to 10 years. The minimum deposit amount is Rs.10,000 andthe maximum
is Rs.1,50,000. He/she must be Non-Resident of Indian origin withincome other than investment
income and long-term capital gain. Tax exemptionup to INR 1,50,000 under section 80C of the
Income Tax Act, 1961.

IOB Unfixed deposit:

The tenure is 7 to 179 days. The minimum deposit amount is INR 50 lakhs.

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 3. Jewel Loan:
IOB provides jewel loan with express speed of sanction with lower processing charge
and no documentation charges. The eligibility for availing jewel loan is a permanent job with
a minimum of 2- or 3-years services for salaried individual and a minimum period of three
years of activity in the relatedfield for self-employed professional. The provide different types
of jewel loans. They are:

Agricultural jewel loan:

To meet the short-term production credit needs of the farmers. Themaximum limit
per borrower is Rs.10 Lakhs.

Agriculture Term Loan-Jewelry:

To meet the investment credit needs of the farmers. Maximum limitper

borrower is Rs.25 Lakhs.

Jewel Loan SME:

To meet the investment need in MSME (Manufacturing, Service andRetail Trade

sectors). Maximum limit per borrower is Rs.5 Lakhs.

Jewel Loan others:

To meet the domestic/business needs. Maximum limit per borroweris Rs.25

Lakhs.

IOB Swarnalakshmi:

To meet the domestic needs of women customers, who is having saving/current

account in the bank. The minimum age limit is 18. Maximum limitper borrower is Rs.5 Lakhs.
This should be repaid within 12 months. A free accidental insurance cover of Rs. 2 Lakhs under
PMSBY to individual women beneficiaries for first time.

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 IOB Swarna Samridhi:
To meet the short-term credit requirement for crop cultivation, land development
activities, investment activities and activities allied to agriculture. Maximum limit per borrower
is Rs. 10 Lakhs. Loan should be repaid within a period of 6 months.

4. Advances:

An advance is a money that a bank gives to you without requiring you to repay it
immediately. The advance department ensures that funds are distributedonly after compliance
with terms and conditions or required documents received.They ensure the collateral security is
adequate at times of support the loans. Theykeep the loan documents under safe custody. They
monitor the receipt of periodical receivable. They maintain the central liability records for all
extensionsof credit and balancing the totals with general ledger.

5. Cash:

Cash department deals with the cash that is either inward or outward i.e., payment in
cash by the customer or payment to customer in cash form, with cheques and with receipts.
It collects the finds of the government. I t accepts thedeposits of the customers. It collects the
utility bills from relevant areas or surroundings. It pays the cheque presented by the customers.

Duties of cashier:

The duties of head cashier involve holding bank’s cash, key or othervaluables in
safe custody jointly with an officer and being accountable for them and being responsible for
the running of the cash department.

• Opinion compilation

• Verification of vernacular signatures/endorsements

• Countersigning cheques, drafts

• Attending to government treasuries

• Discharging/endorsing bills, cheques, etc.,

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• Being in charge of clearing and godown departments.

• Passing independently clearing and transfer cheques,

vouchers, etc.,
up to and including Rs.50,000 and cash vouchers up to Rs.50,000 jointly
with an authorized person.

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 CHAPTER – IV
SUMMARY OF WORK DONE

S.NO Date Summary of work done

1 12.06.2023 On the first day of internship, I introduced myself to the

higher officials and the staffs there.

2 13.06.2023 On the second day, I have learned about the history ofIndian
Overseas Bank and areas covered unde3r the
branch.

3 14.06.2023 On this day, I learned about the types of accounts

and how to open the current and savings account.

4 15.06.2023 On this day, I learned about various vouchers, account

opening forms and various other forms.

5 16.06.2023 On my fifth day, I have learned how to fill the vouchers,

account opening forms and various other forms.

6 17.06.2023 I have learned the general KYC details needed for each
and every process of the bank branch.

7 19.06.2023 Learnt about various interest rates for different

periods for fixed deposits and about NEFT & RTGS.

8 20.06.2023 On this day, I have learned about voucher separation to

maintain the records for future use.

9 21.06.2023 Learned more about voucher separation and I

helped them to separate.

10 22.06.2023 This was my tenth day, I learned about SWO (Single

Window Operator) and their duties. I also helped themwith some

works.

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11 23.06.2023 I helped the customers of the bank by helping them to fill
the forms and vouchers.

12 26.06.2023 On this day I analyzed some of their records such as

transfer branch account, new account forms, etc.,

13 27.06.2023 On this day, I have learned about jewel loan and its
types with interest rates.

14 28.06.2023 Learnt about IOB-SB Pensioner account.

15 30.06.2023 Learnt about IOB Salary account.

16 01.07.2023 On this day, I have learned about the credit card and
eligibility to avail credit cards.

17 03.07.2023 Learnt about the new schemes in Indian Overseas Bank.

18 04.07.2023 On this day, I have learned about settlement of claims in

various aspects.

19 05.07.2023 On this day, I have learnt about locker facilities with its
process, features and charges.

20 06.07.2023 On this day, I have done a work on excel sheet for the
customer’s returned debit cards.

21 07.07.2023 They gave me the gist about the past 20 days.

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 CHAPTER – V
CONCLUSION

With the co-operation of all branch members, I have been able to learn andexperience
many new things related to the banking sector. I gained knowledge and experience on how the
bank works and how the staff are customer friendly. Through the internship I learned about the
internal structure of the bank and its functions. I also learned how they calmly tackle all the
problems faced by the customers. I gained knowledge on how deposits and loans are provided
and maintained by the branch and how the branch is controlled by the head office. I also
expanded my knowledge on how the branch reports its functions to the head office. The
internship is very useful as I learned about all the functions of the bank in person and
experienced the real environment of the bank and its functions.I am very thankful to the staffs
who guided me throughout the internship and forhelping me in the process.

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