Blackbook Retail PDF

AMITY GLOBAL BUSINESS SCHOOL MUMBAI
SUMMER INTERNSHIP REPORT ON
RETAIL BANKING
AT
BANK OF INDIA
SUBMITTED BY
URMILA MADHAB GHOSH
COURSE: MASTER OF BUSINESS ADMINISTRATION
ENROLLMENT NO: A30201916017
BATCH 2016 – 2018
UNDER THE GUIDANCE OF
PROF. NAVEEN ROHATGI
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DECLARATION
I hereby declare that the work in this thesis entitled “RETAIL BANKING AT BANK OF INDIA”
resulted out of the summer internship project undertaken at “Bank of India” during the period May
2017- July 2017 is original and has not been previously submitted anywhere else.
Name: Urmila Ghosh
Enrolment No.: A30201916017
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CERTIFICATE
This is to certify that the work incorporated in the summer project “RETAIL BANKING AT
BANK OF INDIA” submitted by MISS URMILA MADHAB GHOSH was carried out by the
candidate under my supervision. Such material as has been obtained from other sources has been
duly acknowledged in this report.
Name of the Guide: Prof. Naveen Rohatgi
Signature of the guide:
Date:
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ACKNOWLEDGEMENT
A Research cannot be said to be a work of an individual. A research is a combination of views and ideas,
suggestions and the contributions of many people. While conducting this research, I was supported and helped
by many people in many ways. I wish to express my deepest gratitude to Mrs. Bharti Goyal, Senior Branch
Officer, Bank of India, Borivali (w), who gave me an opportunity to work with her and her branch. I learnt
a lot about the working process of Bank of India, she made me acquainted with the basic pillars of retaining
the customers, by providing them with the kind of services, which the customer wants and expects from the
banking sector. I also wish to express my sincere gratitude to My Mentor, Mr. Naveen Rohatgi, under whose
guidance the research was undertaken. Without his supervision at each stage of research, the task would not
have been completed. I would like to thank Naveen Sir, also for taking out her valuable time for listening to
my progress and giving advices, which was the best for my research, which even, kept me motivated and on
track. I am thankful to the Officers, of the Branch, who took out their important time for briefing me about the
entire process. I would also like to thank the savings Department, for helping me talk directly to the
customers. This Research would have never seen the light of the day without the co-operation of the customers
of Bank of India, Borivali Link Road Branch, who gave me a piece of their valuable time. I am thankful to
all the customers for giving me their valuable time.
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TABLE OF CONTENTS
Sr. Particulars Page

No. No.
1 Executive Summary 6
2 Overview: BANK OF INDIA 7-10
3 Retail Banking: An Introduction 12-18
4 BOI : Retail Deposits 19-39
5 BOI : Retail Loans 39-52
6 Net Banking 53-54
7 Mobile Banking 55
8 CASA Term Insurance 56
9 Literature Review 57
10 Research Methodology 58-59
11 Data Collection Method 60
12 Research Design 61
13 Data Analysis and Interpretation 62-71
14 Opportunities and Challenges 71-76
15 SWOT Analysis 77-78
16 Suggestions and Recommendations 79-80
17 Summary of the Project 81
18 Conclusion- The Future Growth 82
19 Limitation of the project 83
20 Bibliography 84
21 Annexure 85-86
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EXECUTIVE SUMMARY
My project aims on Customer Retail Banking at Bank of India.
In this research study 50 respondents from the Bank was taken. After analysing we conclude
that even now a days banks are providing innovative services day by day, but still there
are a lot of customers who are even not aware about these services, the usage of these
service s is a different issue.
Today Banks are using huge amount of funds to provide differentiate services to their
customers from their competitors by providing new innovative services like deposits, loans,
casa term insurance, online share trading, finance to msme and many others but still they
are focusing only to provide the innovative services to the customers not focusing too
aware them regarding these services and also there is a need to aware the customers about
the use and benefits to the services provided by the bank, because it’s the way to get
competitive advantage, as per as we all know that today most of the organizations are
focusing on the promotion- element of marketing mix, which is providing financial as
well as non-financial benefits like Brand image, so these Banks is not focusing over this
element, The most important channel that aware customer most regarding the innovative
services is family& friends.
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OVERVIEW: BANK OF INDIA
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 4963 branches in India spread over all states/ union territories including
specialized branches. These branches are controlled through 54 Zonal Offices.
There are 60 branches/ offices and 5 Subsidiaries and 1 joint venture abroad.
The Bank came out with its maiden public issue in 1997 and follow on Qualified Institutions
Placement in February 2008.
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.
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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.
Presently Bank has overseas presence in 22 foreign countries spread over 5 continents – with
60 offices including 5 Subsidiaries, 5 Representative Offices and 1 Joint Venture, at key
banking and financial centres viz., Tokyo, Singapore, Hong Kong, London, Jersey, Paris and
New York
Contribution of foreign branches in the global business of the Bank as at 30.06.2017 is as

under:
Deposits 25.95%
Advances 28.97%
Business Mix 27.27%
Products offered by Bank of India:
1. Commercial Banking:
➢ Commercial bank is a type of financial institution that provides services such as

accepting deposits, making business loans, and offering basic investment products.
➢ "Commercial bank" can also refer to a bank, or a division of a large bank, which more
specifically deals with deposit and loan services provided to corporations or
large/middle-sized business.
2. Retail Banking:
➢ Retail banking also known as Consumer Banking is the provision of services by a

bank to individual consumers, rather than to companies, corporations or other banks.
Services offered include savings and transactional accounts, mortgages, personal
loans, debit cards, and credit cards.
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➢ The term is generally used to distinguish these banking services from investment
banking, commercial banking or wholesale banking.
➢ It may also be used to refer to a division or department of a bank dealing with retail
customers.
3. Private Banking:
➢ Private banking is banking, investment and other financial services provided by banks
to high-net-worth individuals with high levels of income or sizable assets.
➢ The term "private" refers to customer service rendered on a more personal basis than
in mass-market retail banking.
➢ Private banking forms a more exclusive subset of wealth management.
➢ At least until recently, it largely consisted of banking services, discretionary asset
management, brokerage, limited tax advisory services and some basic concierge-type
services, offered by a single designated relationship manager.
4. Asset Management:
➢ Asset management, broadly defined, refers to any system that monitors and maintains
things of value to an entity or group.
➢ It may apply to both tangible assets such as buildings and to intangible assets such as
human capital, intellectual property, and goodwill and financial assets.
➢ Asset management is a systematic process of deploying, operating, maintaining,
upgrading, and disposing of assets cost-effectively
5. Mortgage:
➢ A mortgage loan, also referred to as a mortgage, is used by purchasers of real property

to raise funds to buy real estate; by existing property owners to raise funds for any
purpose while putting a lien on the property being mortgaged.
➢ The loan is "secured" on the borrower's property.
➢ This means that a legal mechanism is put in place which allows the lender to take
possession and sell the secured property ("foreclosure" or "repossession") to pay off
the loan in the event that the borrower defaults on the loan or otherwise fails to abide
by its terms.
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➢ Mortgage can also be described as "a borrower giving consideration in the form of
collateral for a benefit (loan).
➢ Types: Fixed rate mortgage and Flexible rate mortgage.
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RETAIL
BANKING AT
BANK OF INDIA
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RETAIL BANKING-AN INTRODUCTION
Banking in India has come a full circle from the time when you had to wait in a queue to
collect cash to getting it delivered at your doorstep at no extra cost. Add to that services like
phone banking, Internet banking, 24 hour ATM, draft delivery at home, etc. and you have
service spelt with a capital S. Though the contemporary banks' services have changed a lot
over the last few years, the core function has remained the same. Banks handle deposits and
withdrawal of money, provide loans, pay a part of the surplus as interest and the rest is kept
back for the smooth functioning of the bank and profit making. A banks' functions can be
divided into various divisions like: Retail/Personal Banking: This division provides a range of
financial services to individual customers and small companies. It operates mainly through
branch networks. Retail banking includes routine transactions like deposits and withdrawals
of money; money transfer; foreign currency exchange and traveller's cheque encashment.
They also deal with personal and small loans, credit and mortgages; insurance policies;
investment schemes; pension funds; and advice to customers on various financial matters.
Apart from offering home loans, car loans, educational loans, consumer loans, etc. they also
develop various deposit schemes and help people fill their coffers. Corporate Banking: They
deal with medium to large-scale companies and government agencies. It could start at the
local branch manager level, though more complex dealings are routed through corporate
divisions of clearing banks and their merchant banking subsidiaries. Corporate banking deals
with credit and advances, trade finance, foreign exchange management, asset management,
lease financing of heavy equipment, infrastructure, machinery, credit risk assessment, etc.
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They also advise clients on matters such as corporate mergers and acquisition, raising capital
and business strategy regarding competitors and outside factors.
Merchant Banking: Investment management is the primary activity of this group. It could be
on behalf of corporate clients, or institutional investors-like pension funds, investment trusts,
or those in the securities business. This groups also handles public issue and marketing of
shares, debentures and other such papers. It may also include other stock market functions
like dematerialization services, investment advisory services, etc. Merchant banking
executives research into capital market, advise and manage funds of various corporate and
individual customers.
Treasury group: This group takes care of the total funds of a bank including foreign exchange
reserves. Responsibilities include bank portfolio management, dealing in foreign currency,
etc. There are Forex (foreign exchange) dealers in this group who exclusively deal with the
foreign market. They buy and sell foreign exchange at the minimum exchange cost thereby
earning maximum profit from the transactions.
Rural Banking: This group deals with the banking and credit needs of people in the rural
sector. Not all banks have this group and some banks have separate subsidiary companies for
rural banking.
Product Management: This group conceptualizes various banking services and then develops,
implements and manages them. They have the responsibility for a banking product (meaning
services like personal loans, home loans, credit cards, loans against shares, educational loans,
etc.) Apart from these main functional groups, there is an appraisal group to analyse
economic feasibility of industrial projects, the bank's exposure to financial risk and long term
returns. There are internal auditors who audit the bank's internal books of accounts. There are
various groups of professionals like lawyers, engineers, agricultural scientists and economists
who work in various departments in advisory capacities. They help make decisions on issues
that are legal, technical or economic in nature. For example, the economist advises various
functional groups on the implications of the Union budget on the business of the banks,
consumer buying pattern, etc.
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BANKING IN RETAIL
With a jump in the Indian economy from a manufacturing sector, that never really took off,
to a nascent service sector, Banking as a whole is undergoing a change. A larger option for
the consumer is getting translated into a larger demand for financial products and
customization of services is fast becoming the norm than a competitive advantage. With the
Retail banking sector expected to grow at a rate of 30% [Chanda Kochhar, ED, ICICI Bank]
players are focusing more and more on the Retail and are waking up to the potential of this
sector of banking. At the same time, the banking sector as a whole is seeing structural
changes in regulatory frameworks and securitization and stringent NPA norms expected to be
in place by 2004 means the faster one adapts to these changing dynamics, the faster is one
expected to gain the advantage. In this article, we try to study the reasons behind the
euphemism regarding the Retail-focus of the Indian banks and try to assess how much of it is
worth the attention that it is attracting.
POTENTIAL FOR RETAIL IN INDIA: IS SKY THE LIMIT
The Indian players are bullish on the Retail business and this is not totally unfounded. There
are two main reasons behind this. Firstly, it is now undeniable that the face of the Indian
consumer is changing. This is reflected in a change in the urban household income pattern.
The direct fallout of such a change will be the consumption patterns and hence the banking
habits of Indians, which will now be skewed towards Retail products. At the same time, India
compares pretty poorly with the other economies of the world that are now becoming
comparable in terms of spending patterns with the opening up of our economy. For instance,
while the total outstanding Retail loans in Taiwan is around 41% of GDP, the figure in India
stands at less than 5%. The comparison with the West is even more staggering. Another
comparison that is natural when comparing Retail sectors is the use of credit cards. Here also,
the potential lies in the fact that of all the consumer expenditure in India in 2001, less than
1% was through plastic, the corresponding US figure standing at 18%.
But how competitive are the players
The fact that the statistics reveal a huge potential also brings with it a threat that is true for
any sector of a country that is opening up. Just how competitive are our banks? Is the threat
of getting drubbed by foreign competition real? To analyze this, one needs to get into the
shoes of the foreign banks. In other words, how do they see us? Are we good takeover
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targets? Going by international standards, a large portion of the Indian population is simply
not ―”bankable” – taking profitability into consideration. On the other hand, the financial
services market is highly over-leveraged in India. Competition is fierce, particularly from
local private banks such as HDFC and ICICI, in the business of home, car and consumer
loans. There, precisely lie the pitfalls of such explosive growth. All banks are targeting the
fluffiest segment i.e. the upwardly mobile urban salaried class. Although the players are
spreading their operations into segments like self- employed and the semi-urban rich, it is an
open secret that the big city Indian yuppies form the most profitable segment. Over-
dependence on this segment is bound to bring in inflexibility in the business.
Typical products offered in retail banking include:
1. Transaction Account
• A transaction account, checking account, or demand deposit account is a deposit

account held at a bank or other financial institution.
• It is available to the account owner "on demand" and is available for frequent and
immediate access by the account owner or to others as the account owner may direct.
• In economic terms, the funds held in a transaction account are regarded as liquid
funds.
• Access may be in a variety of ways, such as cash withdrawals, use of cheques and
debit by electronic transfer.
• They normally do not earn any or a high interest and the financial institution that
maintains the account commonly charges account maintenance or transaction fees to
the account holder.
2. Saving Account:
• Saving accounts are accounts maintained by retail financial institutions that pay
interest but cannot be used directly as money in the narrow sense of a medium of
exchange.
• These accounts let customers set aside a portion of their liquid assets while earning a
monetary return.
• Withdrawals from a savings account are occasionally costly, and they are more time-
consuming than withdrawals from a demand (current) account.
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• For the bank, money in a savings account may not be callable immediately and, in
some jurisdictions, does not incur a reserve requirement.
3. Mortgage Loan:
• A mortgage loan, also referred to as a mortgage, is used by purchasers of real property

to raise funds to buy real estate; by existing property owners to raise funds for any
purpose while putting a lien on the property being mortgaged.
• The loan is "secured" on the borrower's property.
• This means that a legal mechanism is put in place which allows the lender to take
possession and sell the secured property ("foreclosure" or "repossession") to pay off
the loan in the event that the borrower defaults on the loan or otherwise fails to abide
by its terms.
• Mortgage can also be described as "a borrower giving consideration in the form of
collateral for a benefit (loan).
• Features of mortgage loans such as the size of the loan, maturity of the loan, interest
rate, method of paying off the loan, and other characteristics can vary considerably.
• The lender's rights over the secured property take priority over the borrower's other
creditors which means that if the borrower becomes bankrupt or insolvent, the other
creditors will only be repaid the debts owed to them from a sale of the secured
property if the mortgage lender is repaid in full first.
4. Home equity loans:
• A home equity loan is a type of loan in which the borrower uses the equity of his or
her home as collateral.
• The loan amount is determined by the value of the property, and the value of the
property is determined by an appraiser from the lending institution.
• A home equity loan creates a lien against the borrower's house and reduces actual
home equity.
5. Personal loans:
• It is an unsecured debt i.e. any type of debt or general obligation that is not protected
by a guarantor, or collateralized by a lien on specific assets of the borrower in the case
of a bankruptcy or liquidation or failure to meet the terms for repayment.
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• In the event of the bankruptcy of the borrower, the unsecured creditors will have a
general claim on the assets of the borrower after the specific pledged assets have been
assigned to the secured creditors.
• The unsecured creditors will usually realize a smaller proportion of their claims than
the secured creditors.
6. Certificate of deposits / Term deposits:
• A certificate deposits a money deposit at a banking institution that cannot be

withdrawn for a specific term or period of time
• In exchange for the customer depositing the money for an agreed term, institutions
usually grant higher interest rates than they do on accounts that customers can
withdraw from on demand—though this may not be the case in an inverted yield
curve situation.
• When the term is over it can be withdrawn or it can be held for another term.
• The bank intends that the customer hold the CD until maturity, at which time they can
withdraw the money and accrued interest.
• Generally speaking, the longer the term the better the yield on the money.
• CDs are negotiable and can be rediscounted when the holder needs some liquidity,
while time deposits must be kept until maturity.
General guidelines for interest rates include:
• A larger principal should receive a higher interest rate, but may not.
• A longer term usually earns a higher interest rate, except in the case of an inverted
yield curve (i.e., preceding a recession).
• Smaller institutions tend to offer higher interest rates than larger ones.
• Personal CD accounts generally receive higher interest rates than business CD
accounts.
• Banks and credit unions that are not insured by the FDIC or NCUA generally offer
higher interest rates.
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7. Traveller’s Cheque:
• A traveller's cheque is a medium of exchange that can be used in place of hard

currency.
• Traveller's cheques are often used by individuals traveling on vacation to foreign
countries.
• Traveller's cheques can be denominated in one of a number of major world currencies
and is pre-printed, fixed-amount cheque designed to allow the person signing it to
make an unconditional payment to someone else as a result of having paid the issuer
for that privilege.
• They were generally used by people on vacation instead of cash, as many businesses
used to accept traveller's cheques as currency.
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PRODUCTS OF BANK OF INDIA
BOI RETAIL DEPOSITS
SAVINGS
1. BOI STAR YUVA ACCOUNT:
• Incentive for usage of Alternate Channels in place of Branch Network for financial
transactions
• Bingo card to all customers of BOI STAR YUVA ACCOUNT
• Merchant offers: Exclusive and special tie up for merchant offers both online and
offline
• Personal Accident Insurance: Complimentary cover of up to Rs.50,000 for the age
group of 18-21 years and after 21 years cover will be Rs.5,00,000/-to be activated by
single POS Swipe every financial year
• SUD life group term insurance scheme : Waiver of 1st year pro rata premium
(presently Rs.125/- + service tax) The above premium is applicable for the age group
18-35 years and customer can continue this scheme at their cost for subsequent years
on his first application for joining the SUD life group term insurance scheme for the
age group of 18 -35 years.
ACCOUNT BOI STAR YUVA SB ACCOUNT SCHEME
AQB Criteria 1. Age group 21-35 years:-

2. Rs.5,000/-in Metro/Urban Branches
3. Rs. 2500/- in Semi-urban/Rural Branches
Charges for non- Age group 21-35 years: - Penalty will be levied for Non-
maintenance of maintaining Average Quarterly Balance (AQB) as follows:
Average Quarterly
1. SB A/cs with Cheque Book facility:- Rs. 100/- per
Balance (AQB)
quarter at all centres
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2. SB A/cs without Cheque Book facility:- Rs. 60/- per
quarter at all centres
2. BOI STAR MAHILA SB ACCOUNT:
Eligibility Women in the age group of 18 years and above.

Singly or in joint names. The first account holder
must belong to entitled group
-Including salaried employee (Govt./ PSU/ Private
Sector/ MNC etc.)
-Self Employed Professionals like Doctors,
Entrepreneurs etc.
Women with independent source of regular
income like rentals etc.
AQB Criteria Average Quarterly Balance (AQB) of Rs.5000/-
Opening of Account/ Minimum Daily No Daily Minimum Balance Requirement
Balance However customer has to maintain Average
Quarterly Balance (AQB) of Rs.5000/- or above,
therefore AQB Clause to apply
Charges for Non Maintaining No Penalty for Non Maintaining Daily Minimum
Minimum Balance/AQB Balance
In case of Non maintenance of AQB of Rs.5,000/-
Penalty
will be levied as under:
SB A/cs with cheque book facility:
Penal charges: Rs.100/- per 3 months at all centres
SB A/c without cheque book facility:
Charges for excess debit entries in Up to 10 Customer induced debit entries a month:
Savings Bank account ATM / FREE
Beyond 10 debit entries:FREE
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INTERNET transactions not to be (Presently Normal Savings A/C is charged with
counted / reckoned Rs.10/- per entry for above 10 debit entries).
Personalized Cheque books per 50 Leaves (Free)
calendar year
Issuance of DD/Pay slips 6 DD Per Quarter Free if AQB in the preceding
quarter is maintained at Rs.10000/- and above else
DD charges applicable
Global Debit cum ATM Card Free Global Debit cum ATM card – Nil Annual
Charges from next year
Easy Overdraft Facility The account holder may be provided overdraft
facility for maximum amount equal to one month
of the salary amount (net credit to SB a/c last
month) in their SB Account.
The Rate of interest on overdraft is proposed to be
Base rate + 3%.
No Processing Charge will be recovered for
overdraft.
3. BOI STAR SENIOR CITIZEN SB ACCOUNT:
Target Group Citizens who have completed 57 years and Senior

Citizens who are drawing pension from other Banks
Eligibility Singly or in joint names. The first account holder must
belong to target group
Average Quarterly Balance Average Quarterly Balance (AQB) of Rs.10000/-AQB
Criteria shall be calculated for AMJ, JAS,OND & JFM quarters
(for example AMJ stands for April, May, June)
No Daily Minimum Balance Requirement

Opening of Account/ Minimum
However customer has to maintain Average Quarterly
Daily Balance
Balance (AQB) of Rs.10,000/- or above,
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Charges for Non Maintaining In case of Non maintenance of AQB of Rs.10,000/-
Average Quarterly Balance Penalty will be levied as under:
SB A/cs with cheque book facility:
SB A/c without cheque book facility:
Charges for excess debit entries in Up to 10 Customer induced debit entries a month :
Savings Bank account ATM / FREE
INTERNET transactions not to be Beyond 10 debit entries : FREE
counted / reckoned (Presently Normal Savings A/C is charged with Rs.10/-
per entry for above 10 debit entries).
calendar year
Issuance of DD/Pay slips 6 DD Per Quarter Free if AQB in the preceding quarter
is maintained at Rs.10000/- and above else DD charges
applicable
Global Debit cum ATM Card Free Global Debit cum ATM card – Nil Annual
Charges from next year
Group Personal Accident Death 1. Group Personal Accident Death Insurance
Insurance cover Cover of Rs.5 lakhs on the Debit Card, which
shall be activated by single POS Swipe.
2. The facility of Group Personal Accident Death
Insurance Cover of Rs. 5 lakhs will be extended
by the Bank to the Account holders of this
scheme and the cost of premium will be borne
by the Bank.
4. SB ACCOUNT FOR PENSIONERS:
Target Group All Pensioners who are drawing pension through Bank
of India Branches irrespective of age
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Eligibility Singly or in joint names only with spouse with
operational instruction Either/Survivor or
Former/Survivor
Average Quarterly Balance NIL
Criteria
Opening of Account/ Minimum No Minimum Balance Requirement
Daily Balance
Charges for Non-Maintaining No Penalty for Non Maintaining AQB
Average Quarterly Balance
calendar year
Issuance of DD/Pay slips (NEW 6 DD/ Pay slips per Quarter : FREE
FEATURE)
Global Debit cum ATM Card Free issuance of Global Debit cum ATM card & Nil
(NEW FEATURE) Annual Charges from next year
Group Personal Accident Death 1. Group Personal Accident Death Insurance
Insurance cover Cover of Rs.5 lakhs on the Debit Card, which
(NEW FEATURE) shall be activated by single POS Swipe.
Insurance Cover of Rs. 5 lakhs will be extended
by the Bank to the Account holders of this
scheme and the cost of premium will be borne
by the Bank.
Easy Overdraft Facility The account holder may be provided overdraft facility
(NEW FEATURE) for maximum amount equal to 2 month of the pension
amount in their SB Account upon fulfillment of terms
and conditions and rate of interest on overdraft will be
Base Rate + 1%.
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SALARY
1. JAI JAWAN SALARY PLUS ACCOUNT FOR DEFENCE PERSONNEL
Sr. Particulars Commissioned Officers Non-Commissioned

No Officers:
1. Eligibility All permanent employees of Defence Forces i.e. Indian
Army, Indian Air Force, Indian Navy and Coast
Guards.
Ex-servicemen and New Recruits (under training) are
also eligible & covered in this Scheme.
2. Minimum Balance NIL
Requirement
3. Group Personal Accidental Free Personal Accident Insurance cover of Rs.10 Lakhs
Death Insurance Cover (Death Benefit only)
4. Free Platinum Debit Cum i) Free Platinum Card with daily cash withdrawal limit
ATM Card of Rs.50,000/- and POS limit of Rs. 1 Lakh.
ii) Nil Annual Renewal Charges

(This card is of premium
category Debit Cum ATM
iii) Free Add on Card
Card)
5. Coverage of Ex-servicemen Ex-servicemen are also eligible
Personnel
6. Internet Banking Free
7. Star Sandesh Free
8. RTGS/NEFT payment Free
through Branches/ Internet (Free Facility of RTGS/NEFT payment was earlier
Banking available through internet Banking only)
9. Mobile Banking Free
10. Cheque Leaves All Cheque Leaves free to all Categories
(All cheques are payable at all our branches in clearing)
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11. Concession in charges of 30% concession
lockers for self & (Subject to availability of Locker at the Branch)
immediate family member (Family includes spouse & dependent children)
12. Easy Over draft (on 4 times of net salary 3 times of net salary
application) to be approved Maximum Rs.2 Lac Maximum Rs.1 Lac
by the Manager. Loan plus
TOD should not exceed the All other Conditions – as All other Conditions – as
limit of Rs 1 lac and Rs 2 per Personal Loan Scheme per Personal Loan
lac as mentioned in each Scheme
category. The amount cap
for TOD will also include
the amount mentioned
under cheque bounce
facility.
13. Pass Book/Statement Any one of them Available
(Monthly)
14. Interest Concession & 0.50 % less than usual rate in Retail Loan* subject to
Waiver of Processing min Base Rate
Charges on Retail Loans* 100% Waiver of Processing Charges in Retail Loan*
*Retail Loans- Home Loan, Vehicle Loans and Personal Loans
15. Star Share Trade (3 in 1 Annual Maintenance Charges waived
account)i.e. (during first year)
Demat + Saving + Online
share Trading
16. Demand Drafts/Pay orders Free - Demand Draft/Pay Orders at Par
(amount up to Rs.50,000/- per draft through salary
account for genuine purpose)
17. Transactions at Non-home
branches
(a) Cash Deposit at Other SOL a) Free of charge
Cash withdrawal at other
(b) SOL Max limit Rs 50,000/-
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b) Free of Charge
18. Cheque bounce protection Rs.50000/- (Max.) Rs.25000/- (Max.)
for clearing cheques
19. Credit Card International Gold Credit India Card
(No Annual Maintenance Card
Charges)
20. Cheque Collection Charges Free Cheque Collection up to Rs.25,000/- per month
21. SUD Life Group Term SUD Life Group Term Insurance Cover at very
Insurance Cover attractive rate. The salient features are:-
• Wider entry age up to 65th birthday.
• Choice of Sum assured up to 5 lakhs
• Hassle free process with just a one pager
enrollment form
• No medicals required
• Competitive premium rates
22. BOI STAR JAI JAWAN • Scheme for financing House/Flats constructed
HOME LOAN SCHEME by Army Welfare Organization (AWHO), Air
force, Naval Housing Board (ANHB) and Para
Military Forces.
• There is 100% Waiver on processing charges in
Home Loan under this scheme.
24 Online Income Tax return Available at Discounted rate under Tie-up arrangement.
Facility It can be filed from BOI Website
24. Nomination facility Available as per the prevailing banking norms
Page | 26
2. BOI STAR GURUKUL SB ACCOUNT
Eligibility All Teaching and Non-Teaching staff of

school/colleges/universities and all such educational institutes
are eligible to open account under the scheme provided a
minimum 10 employees and each employee having minimum
take home salary of Rs.5000/- p.m. and above can join the
scheme.
Opening of Account/ No minimum Balance requirement / Zero Balance Account
Minimum Daily Balance
Charges for excess debit Up to 10 Customer induced debit entries a month : FREE
entries in Savings Bank Beyond 10 debit entries: Rs.10/- per entry.
account ATM /
INTERNET transactions
not to be counted /
reckoned
Personalized Cheque 50 Leaves (Free)
books per calendar year
Issuance of DD/Pay slips Free 24 DD/PSI of max. Rs.50,000 each in a calendar year
Global Debit cum ATM Free global Debit cum ATM Card to all
Card
NEFT/RTGS through Net Free
Banking to BOI customers
Concession on Loans 0.25% concession in ROI on Home Loan and Auto Loan
subject to min Base rate
Processing Charges 50% concession in processing charges on Home Loan &
Personal Loan
Credit Card Free Gold Credit card to employees whose net salary above
than Rs.10,000/- & above for last 6 months.
Free Gold International Card to employees whose net salary
is Rs.25,000/- & above for last 6 months.
Page | 27
Star Share Trade Available
( 3 in 1 account ) Waiver of AMC Charges on demat(for First Financial Year
Demat + Saving + Online only)
Share Trading
Easy Overdraft Facility The account holder may be provided overdraft facility for
maximum amount equal to 2, 00,000/- or last four months of
the net salary amount (Whichever is lower)
The Rate of interest on overdraft is proposed to be Base rate

+ 3%. No Processing Charge will be recovered for overdraft
Group Personal Accident 1. Group Personal Accident Death Insurance Cover of
Death Insurance cover Rs.5 lakhs on the Debit Card, which shall be activated
by single POS Swipe .
Insurance Cover of Rs. 5 lakhs will be extended by
the Bank to the Account holders of this scheme and
the cost of premium will be borne by the Bank.
Page | 28
3. BOI SARAL SALARY ACCOUNT SCHEME
Eligibility: All employees on Menu option OAAC

regular pay roll of any institute Scheme Code will be 165 and special charge code
(Central Govt. / State Govt. / PSU / will be:
Private sector etc.)
• 0202 for Employees of Central and State
With minimum 10 employees and
Government/ Universities/ colleges affiliated
each employee is having minimum
to universities
take home salary of Rs 5000/- p.m.
• 0203 Employees of Public Sector
and above.
Undertakings and
• 0204 Employees of Private Sector (to be
approved by the Branch Manager)
Please note that scheme code and special charge

code are essential for identification of the account
and their category and also for the extension of
benefits to the depositor.
Minimum Balance Requirement NIL
Debit Card Free Debit Card to all
Free Platinum Debit Card to employees with

minimum take home salary of Rs 25,000/- p.m. or
average quarterly balance in SB a/c is Rs 1 Lakh
Group Personal Accidental Death Free Personal Accident Death Insurance cover of
Insurance Cover Rs.1 Lakh
(Group Insurance Policy taken at

HO and premium is borne by H.O.
centrally)
Internet Banking/ Mobile Free
Banking/RTGS/ NEFT payment
through Internet Banking
Page | 29
Cheque Leaves: Free 100 Cheque leaves per calendar year
Demand Drafts / Pay orders 1 DD / PO free with maximum amount of Rs

50,000/- per month
Star Share Trade (3 in 1 account) Available : Annual Maintenance Charges on Demat
Demat, SB, Online share Trading waived (during first FY)
Pass Book/Statement (Monthly) Any one of them Available
Credit Card Free Gold Credit Card to employees with net take
home Salaryof Rs 10,000/- & above for last 6
months.
Free Gold International Credit Card to employees
with net take home Salary of Rs 25,000/- & above
for last 6 month.
Online Income Tax return Facility Available at Discounted rate under Tie-up
arrangement.
SUD Life Group Term Insurance SUD Life Group Term Insurance Cover at very
Cover attractive rate. The salient features are:-
• Wider entry age up to 65th birthday.

• Choice of Sum assured up to 5 lakhs
• No medicals required
• Competitive premium rates
Nomination facility Available as per the prevailing banking norms
Page | 30
CURRENT
1. SILVER CURRENT ACCOUNT
BOI Silver Current Account is at Minimum AQB of Rs 20,000/- which comes with a host of
privileges.
Ancillary Services • Phone Banking

• Corporate Net banking •
• Free statements of Account

• Missed Call alert facility for obtaining account balance
• Online Income Tax return filing facility
• Free utility bills payment facility through E-pay
• ATM cum International Business Debit Card
Page | 31
Cash Deposit Facility Unlimited (subject to chargeable for cash handling charges)
(Base & Non-Base
Branches)
Base Branch Cash Unlimited
Withdrawal Facility
Non-Base Branch Cash Cash withdrawal up to Rs 50,000/- per day at other than Base branch
Withdrawal Facility
Fund Transfer • Free Funds Transfer within the bank (Self A/c or Third party
A/c)
• 90% of normal charges to apply on Collection of Cheques
across Bank of India locations all over the country
Cheque Book Free 25 Cheque leaves per Quarter

NEFT/RTGS • 90% of normal charges to apply on payment of NEFT/RTGS
whereas Collection is freeof cost
• Free NEFT/RTGS payment through Net Banking
Demand Draft/Pay • 3 DD/ PO - Free per Quarter (up to Rs.5.00 Lacs per
Order instrument)
Special Privileges • 25 % Waiver of Processing Charges on Retail Loans*

• Free Gold International Corporate Credit Card*
• Corporate Salary Package available*
• Waiver of AMC Charges on Demat A/c for Ist Year
2. GOLD CURRENT ACCOUNT

BOI Gold Current Account which comes with a host of privileges at a Minimum AQB of
Rs.50,000/-.
Cash Deposit Facility Unlimited

Withdrawal Facility
Page | 32
Non-Base Branch Cash Cash withdrawal up to Rs 50,000/- per day at other than Base
Withdrawal Facility branch
Fund Transfer • Free Funds Transfer within the bank (Self A/c or Third
party A/c)
• 80% of normal charges to apply on Collection of
Cheques across Bank of India locations all over the
country.

NEFT/RTGS • 80% of normal charges to apply on payment of
NEFT/RTGS whereas Collection is free of cost
Demand Draft/Pay Order • 5 DD/ PO - Free per Quarter (up to Rs.5.00 Lacs per
instrument)
Discount / Relaxation in Up to 5 basis point (0.05%) Merchant Discount on Credit card

POS offer from Prevailing rates*
Special Privileges • 50 % Waiver of Processing Charges on Retail Loans*
• Free Gold International Corporate Credit Card*
• Free ATM cum Debit Card with Nil Renewal Charges
• Cash Management facility at attractive rates*

• Corporate Net banking
• Missed Call alert facility for obtaining account balance
Page | 33
3. PLATINUM CURRENT ACCOUNT
BOI Gold Current Account which comes with a host of privileges at a Minimum AQB of
Rs.10 lacs.
Cash Deposit Facility Unlimited

Withdrawal Facility
Non-Base Branch Cash Cash withdrawal up to Rs 50,000/- per day at other than
Withdrawal Facility Base branch
Fund Transfer • Free Funds Transfer within the bank
• Free Collection of Cheques /Outstation Cheque
collection across Bank of India locations.

NEFT/RTGS • Free payment and Collection of NEFT/RTGS across
Bank of Indialocations
Demand Draft/Pay Order 20 DD/ PO - Free per Quarter (up to Rs.5.00 Lacs per
instrument)
Discount / Relaxation in Up to 25 basis point (0.25%) Merchant Discount on Credit
POS offer card from Prevailing rates*
Special Privileges • Relationship Manager available
• Nil Processing Charges on Retail Loans*
• Free 1+2 Add on GoldInternational Corporate Credit
Card *
• Free ATM cum Debit Card with Nil Renewal
Charges.
• Cash Management facility at attractive rates*
Page | 34
• Corporate Net banking
• Missed Call alert facility for obtaining account
balance
4. STAR BENEFIT CD PLUS ACCOUNT
Features Benefits
Average Quarterly Balance Rs.5,000/- per quarter

Free DD/PSI Up to Rs.5/- Lac each per Three
month
Star Speed Cheque Collection Free
Debit Card for individuals & Proprietorship Free for First year. Prevailing AMC
concerns charges from 2nd year onwards
Cheque Book First Time Free Cheque Book of 50 leaves.
NEFT/RTGS through Internet banking Free
Penal charges on account of non- Rs.600+Applicable Service Tax per quarter
maintenance of stipulated AQB requirement
TERMS
1. DOUBLE BENEFIT TERM DEPOSIT
• Double Benefit Deposits provide a higher yield on the principal at the end of the
stipulated period as the interest is compounded on quarterly basis; but, the principal
and the accrued interest is paid only at the end of the period for which the deposit is
placed with the Bank and not monthly or half-yearly as in the case of other types of
deposits.
Page | 35
• This scheme is useful for short term and medium term investment ordinarily ranging
from 12 months to 120 months.
• KYC ( Know Your Customer) Norms for opening account are applicable for these
accounts also hence proof of residence and proof of identification will be required
along with recent photograph of the depositor/s
• Period and Amount of Deposit :
Deposits under Double Benefit Deposit Scheme are accepted for a fixed period from
six months upto a maximum period of 120 months.
• Minimum amount of Deposit :
Minimum amount that may be accepted for the scheme shall be Rs.10,000/-in Metro
and Urban Branches and Rs.5000/- at Rural and Semi urban Branches For senior
citezens the min amount is Rs5000/-
• Payment of Interest:
Interest will be paid at the time of maturity along with principal with quarterly
compounding.
• PAN number is essential for those accounts where TDS is deducted.
• The accounts may be opened in the names of :Individual — Single Accounts, Joint
Accounts, SoleProprietary Concerns, Partnership Firms, Blind Persons, Minors,
Limited Companies, Associations, Clubs, Societies, Trusts, Joint Hindu Families,
Municipalities, Government and Quasi-Government Bodies, Religious, Educational
and Charitable Institutions.
|2. FIXED / SHORT TERM DEPOSITS
Mode of calculation of Interest on Short Deposits and Fixed Deposits for periods less
than 12 months :
Short Deposits Interest should be paid for the actual number of days on
On deposits repayable the basis of 365 days in a year
within six months
Fixed Deposits Interest will be calculated for the completed months and
On Deposits repayable where the terminal month is incomplete- the actual number
after six months of days on the basis of 365 days in a year.
(Fixed Deposits)
Page | 36
where the terminal month
is complete or incomplete
• Minimum amount Rs.1 lac for SDR and Rs.10,000/- for FDR in Metro and Urban
Branches and Rs.5000/- in Rural and Semi urban branches and for senior citizens the
minimum amount will be Rs 5000/-
• Payment of Interest: (Subject to applicable TDS)
Interest will be paid half yearly on 1st October and on 1st April and in case these
dates falls on holidays then on the next working day.
• The accounts may be opened in the names of : Individual — Single Accounts, Joint
Accounts, Sole Proprietary Concerns, Partnership Firms, Blind Persons, Minors,
Limited Companies, Associations, Clubs, Societies, Trusts, Joint Hindu Families,
Municipalities, Government and Quasi-Government Bodies, Religious, Educational
and Charitable Institutions.
3. RECURRING TERM DEPOSIT
• Recurring Deposit is a special type of deposit account which enables a depositor

particularly in fixed income group to save by paying into the account an agreed fixed
sum of money monthly over a stipulated period.
• The deposits in this type of account earn compound interest on quarterly basis.
• Longer the period for which monthly deposits are agreed to be made higher is the rate
of interest subject to rules.
• KYC ( Know Your Customer) Norms for opening account are applicable for these
accounts also hence proof of residence and proof of identification will be required
along with recent photograph of the depositor/s
• The accounts may be opened in the names of : Individual , Joint Accounts, Illiterate
Persons, Blind Persons, Minors
• A Recurring Deposit account where the compounding of interest is to be done on
quarterly basis shall be accepted for periods in multiples of three months only upto the
maximum period of ten years..
• Minimum Amount of monthly instalment:
Recurring Deposits will be in equal monthly instalments. The core monthly instalment
Page | 37
should be minimum Rs. 500/ in Metro and urban Branches and Rs.100/- or above in
Semi urban/Rural Branches and in its multiples. There is no maximum limit.
• As per amendments brought about in Finance Act 2015, TDS will be applicable for
Recurring Deposits.
4. STAR FLEXI-RECURRING DEPOSIT SCHEME
• Star Flexi Recurring Deposit offers flexibility to invest surplus fund

• Star Flexi Recurring Deposit scheme is a unique Recurring Deposit scheme which
offers flexibility to the customer to choose core installment and to also choose
monthly flexi installments in multiples of the core installment.
• Eligibility: Individuals & Joint Accounts (Including Minors).
• Minimum Core Monthly installment amount:
Rs.500/- and in its multiples - In respect of Metro and Urban branches
Rs.100/- and in its multiples - In respect of Rural and Semi-Urban branches
• Minimum amount of Monthly Installments: No Upper Limit.
• Flexi Installment: Any amount in multiples of core monthly installment initially opted
at the time of opening of account. Maximum Flexi installment can be any number of
times of the core monthly installment.
• Period: Minimum 12 months & Maximum 10 years. (In multiples of 3 months only)
• Interest Rate:
Core Installments (Fixed Rate) : As applicable for the period for which the A/c is
opened.
Flexible Installments: Applicable rate at the time of deposit of the Flexible
installment.
• Maturity Value: No fixed Maturity Value
Page | 38
BOI RETAIL LOANS
1. BOI STAR HOME LOAN
• Provides loans to purchase a Plot for construction of a House, to purchase/construct

house/flat, as well as for renovation/ repair/alteration/addition to house/flat Maximum
loan amount is Rs.500 lacs and repayment ranges up to 30 years, with reasonable margin
and nominal processing charges. No commitment /administrative charges
• The loan is available at very competitive rates of interest, currently available in the
industry.
• Option for different EMI amounts for different periods during tenure of loan to suit
customer’s repayment capacity
• Prepayment of Loan permitted. No prepayment charges under floating rate option
• Interest is calculated on daily balance basis which is of great advantage to customer as it
results in lower interest amount.
• Loan to NRIs as well as Persons of Indian Origin.
• Simplified application form/procedures for convenience of customers, and speedy
approvals.
• Free Personal Accident Insurance cover (Renewed at banks discretion)
• Life Insurance Cover to borrowers for Loan Protection(optional)
• Please visit our nearest Branch and avail loan to own your dream home
Eligibility Salaried employees, Professionals, Self-employed persons. Requests

are also considered from NRIs, PIOs, HUF, and Prop. Firm,
Partnership firms and corporate
Purpose • To purchase/construct house/flat
• To renovate/extend/repair existing house/flat.
• To purchase a plot of land for construction of house
• Takeover of home loan from other banks/FIs- subject to
conditions.
Margin For Loan upto For Loan up to For Loan

Rs.20 Lacs Rs.75 Lacs: above
Page | 39
Margin Rs.75
Lacs:
For 1st House 15% 20% 25%
For 2nd or Subsequent Home 20% 20% 25%

Loan/House/Flat
Where cost of house exceeds Rs.10 lacs – Margin is calculated on

pure cost of the house/flat excluding stamp duty, Registration and
other documentation charge.
For houses with cost not exceeding Rs.10 Lacs – expenses towards
stamp duty, registration and other documentation charge can be
included in the project cost
Repayment(can be Highly flexible - maximum 30 yrs. including moratorium period
customized) upto 36 months (max.) in monthly installments, including Bank’s
approved projects. Loan to be normally repaid before date of
retirement in case of salaried persons and before attaining 70 years
of age in case of others. Repayment upto 70 years also allowed to
salaried employees having assured post retirement income
Eligible Quantum Calculation of quantum of loan is related to Income/repayment
of Loan/ EMI capacity of proponent/borrower
Salaried Employees : 72 times of gross monthly salary or

6 times of gross annual income
based on I-T Returns.
Self-employed/ 6 times of Gross annual income

Professionals etc. based on I-T Returns
HUF/Proprietorship 6 times of cash accruals (PAT+

/Partnership Firm/ Company Depreciation) as per Balance
Sheet/P&L Account
In case of Individuals
Page | 40
Net Take Home pay(NTH)/income (net of all deductions including
EMI of Proposed loan) is stipulated as under :-
Gross Monthly Income up to Rs.1 Lacs NTH Minimum – 40%

Gross Monthly Income over Rs.1 Lac up to Rs. 5 Lacs NTH
Minimum – 30%
Gross Monthly Income over Rs.5 Lacs NTH Minimum – 25%
In case of HUF/Proprietorship/ Partnership firm/Company: DSCR

should be minimum 1.5.
Rate of Interest For Limits upto Rs.75 lacs For Limits of
Rs.75 lacs & above @
1 Year MCLR 9.40 9.40
PREMIUM 0.00 0.25
Business Strategic Spread 0.30 0.30
Effective Applicable Rate 9.70 9.95 @
Security Mortgage/Equitable Mortgage (1st charge) on land/flat/house. Third

Party guarantee (if mortgage could not be created before or at the
time of disbursement).
Special Features • Free Personal Accident Insurance cover for the borrower as
per terms of insurance policy covering loan outstanding as on
the date of accident(Renewal at the discretion of the Bank).
• Life Insurance cover to housing loan borrowers , at
affordable premium against risk of death during tenure of
loan under Group Insurance Scheme in tie up with Star
Union Dai-Ichi Insurance Co. Ltd. at borrower’s own
expenses & option.
• Loan furnishing the house/flat at a rate of interest as
applicable to housing loan under the scheme
• Loan for installation of Solar PVs at home loan ROI
Other Attractive • Interest on Daily Reducing Balance Basis

Features • No Pre-Payment Charges on Floating Rate Loans
Page | 41
• Facility for step up/ step down EMIs
• Inclusion of notional rental income in case of 2nd House and
also Employees staying in Staff Quarters;
• Inclusion of Income of Close relatives for enhanced loan
• Tax Benefit on Interest and Installments repaid in Home
Loans
• Facility for 100% loan irrespective of stage of construction
OR Bridge Loan subject to conditions:
2. BOI STAR EDUCATION LOAN
1. OBJECTIVE & PURPOSE :
The Star Educational Loan Scheme aims at providing financial support from the bank
to deserving/ meritorious students for pursuing higher education in India and abroad.
The main emphasis is that every meritorious student is provided with an opportunity
to pursue education with the financial support on affordable terms and conditions.
2. ELIGIBILITY CRITERIA :
a. STUDENT'S ELIGIBILITY:
• Should be an Indian National;
• Student should have secured admission to a higher education course in
recognized institutions in India or Abroad through Entrance Test/Merit
based selection process after completion of HSC (10 plus 2 or
equivalent).
• Good academic career.
• The student should not have outstanding education loan from any other
Institution.
• Father/Mother should be co-borrower.
• Branch nearest to the permanent residence of student will consider the
loan.
Page | 42
3. STUDIES IN INDIA (INDICATIVE LIST):
o Approved Courses leading to graduate /post graduate degree and P.G.

diplomas conducted by recognized colleges/ universities by
UGC/Government/AICTE/AIBMS/ICMR
o Courses like ICWA,CA,CFA,etc.
o Courses conducted by IIM, IIT, IISc, XLRI, NIFT, NID and other Institutes
set up by Central/State Govt.
o Regular Degree /Diploma courses like Aeronautical, Pilot Training Shipping,
degree/diploma in nursing or any other discipline approved by Director
General of Civil Aviation/Shipping/Indian Nursing Council
• Studies abroad :
• Graduation: For job oriented professional/technical courses offered by reputed
universities.
• Post-Graduation: MCA, MBA, MS, etc.
• Courses conducted by CIMA - London, CPA in USA, etc.
4. EXPENSES CONSIDERED FOR LOAN :
• Fee payable to college/school/hostel*

• Examination/Library/Laboratory fee.
• Purchase of books/equipments/instruments/uniforms.
• Caution deposit/building fund/refundable deposit supported by Institution
bills/receipts.
• Travel expenses/passage money for studies abroad.
• Purchase of computers/Laptops - essential for completion of the course.
• Life Insurance Premium for life cover of student/co-borrower
• Any other expenses required to complete the course - like study tours, project
work, thesis, etc..
5. QUANTUM OF FINANCE
• Studies in India - Maximum Rs.10.00 lakh
• Studies abroad - Maximum Rs.20.00 lakh.
Page | 43
• MARGIN :
Upto Rs.4 lakh : Nil
Above Rs.4 lakh - Studies in India : 5% and Studies Abroad : 15%·
6. SECURITY:
UptoRs. 4 lakh Parents or Guardian to be joint borrowers
Above Rs.4 lakh &upto Rs.7.5 lakh Parents or Guardian to be joint borrowers
Above Rs.7.5 lakh Co-obligation of Parents together with tangible

Collateral security of suitable value
7. RATE OF INTEREST :
Loan Amount Revised Rate of Interest for New loans w.e.f.

01.04.2016
For loans upto Rs.7.50 lacs 3.00% + BSS (0.30%) above 1 Year MCLR
For loans above Rs.7.50 lacs 2.50% + BSS (0.30%) above 1 Year MCLR
Education Loan covered under Credit Guarantee 1.70% + BSS (0.30%) above 1 Year MCLR
Fund Scheme for Education Loan(CGFSEL) limit
upto Rs.7.50 lacs
8. Simple interest during the repayment holiday/moratorium period. Penal interest @2%
for loans above Rs.4 lakh for the overdue amount and overdue period.
9. INSURANCE:
All the student borrowers are offered a specially designed OPTIONAL Term
Insurance covers and the premium can be included as an item of finance.
10. REPAYMENT :
Repayment holiday/Moratorium: Course period + 1 year
Repayment Period: 15 years after commencement of repayment
Page | 44
3. BOI STAR LOAN AGAINST PROPERTY
1. PURPOSE :
a. To meet the credit needs of trade, commercial activity, other general
business/profession, as also for their bona fide requirements;
b. To meet educational expenses of family members including near relatives
c. To undertake repairs/renovation/extension to the residential/commercial
property;
d. To purchase / construct residential house/flat, purchase of plot of land for
construction of house/ premises for business/commercial use *;
e. For Repayment of existing loans availed from other Banks / FI’s conforming
to the extant guidelines regarding “takeover” of account.
3. ELIGIBLE CUSTOMERS :
People engaged in trade, commerce and business, professionals, self-employed,
individuals with high net worth, salaried people, Proprietary firms, Partnership firms,
Companies (Pvt. /Public Ltd.,) HUFs (excluding partnership firms where HUF is a
partner), Societies, Staff members, NRIs- subject to compliance of Bank’s/RBI
guidelines.
ADVANCES TO INDIVIDUALS: MAXIMUM AGE LIMIT:

a) Individuals in permanent service max. 60 years.
b) For Proprietary concerns/Self Employed/non-salaried people – Maximum -70
Years
(Age limit is the maximum age at the end of the repayment Period);
4. TYPE OF ADVANCE :
Demand/Term Loan , Overdraft (Reducible/Non-Reducible)
5. QUANTUM OF ADVANCE :
The quantum of advance to be related to the value of security, margin requirement ,
take home pay and repayment capacity of the proponent , subject to limits as under :-
Page | 45
6. Demand/Term Overdraft Overdraft
Loan (Reducible) (Not-
Reducible)
Individual-Salaried/ Self-employed/
500 200 NIL
Professionals
Doctor/s- in case of joint accounts

500 500 NIL
all to be doctors
Others i.e. Proprietorship/

500 500 500
Partnership Firm/Company etc.
6. CALCULATION OF QUANTUM OF ADVANCE:
1 Individuals-Salaried Employees /Self 48 times of average net emoluments

Employed/Professionals (take home salary) based on salary
slip/Form 16/Income Tax Return OR 4
times of net annual income with other
rental income from property etc. based
on I.T returns for last 2/3 Financial
Years .
2 Doctor/s- in case of joint accounts all to 4 times of average net annual income
be doctors of last 2/3 years based on IT Returns
for last 2/3 Financial Years
3. Others i.e. Proprietorship/ Partnership • For Loans / Reducible
Firm/Company etc. Overdraft: 4 times of average
net annual income of last 2/3
years based on IT Returns for
last 2/3 Financial Years.
• For Overdraft (Non Reducible):
20% of annual turnover based
Page | 46
on last (F.Y) audited balance
sheet of the proponent. Audited
Balance sheet to be obtained for
last 2/3 Years.-based on its
number of years existence.
7. MARGIN (ON VALUE OF PROPERTY):

i. Nil Margin for loan limit provided on the basis of Circle Rate/Registration value of the
property (100% Loan amount);
ii. 60 % of Market value (40 % Loan amount);
iii. 50% of Distress Sale Value (50% Loan amount); whichever is lowest of i, ii iii.*Value of
property for calculation of quantum of advance/determining margin will be lowest of Market
value, Distress Sale value and Registration of value of property/similar property as on date of
valuation.
8. REQUIREMENT OF NET TAKE HOME PAY /DSCR- FOR LOANS :
a. For individuals:
Gross Monthly Income % of NTHP

Upto Rs.1.00 lacs 40 %
Rs. 1.00 lacs & above upto Rs.5.00 lacs 30 %
Above Rs.5.00 lacs 25%
b. For Prop. Firm/Partnership Firm/Company(Loan /Reducible OD) : DSCR:

Min.1.5;
c. For Overdraft facility(Non-reducible ) : ISCR Min.1.5
Page | 47
9. RATE OF INTEREST :
Nature of facility Revised Rate of Interest for new loans w.e.f.

01.04.2016
Loan/ Overdraft 1.50% + BSS (0.30%) above 1 Year MCLR
Reducible
(Monthly Reducible
Limit)
Overdraft (Non- 2.00% + BSS (0.30%) above 1 Year MCLR
Reducible)
10. REPAYMENT TERMS:
For loans ( Repayable by EMI) Max. 12 years by way of equated monthly

installments (EMIs)
Overdraft : (Reducible Limit) Drawing Limit to be reduced on monthly

basis as per sanction terms to bring down
the balance to zero at the end of
repayment period. Total Repayment
period of max. 12 years.
( Interest to be serviced on monthly basis)
Overdraft: (Non-reducible) Interest to be serviced on monthly basis,
as per sanction terms.
11. In case of individuals Loan/Overdraft to be closed within the age limit as
prescribed.
12. SECURITY :Equitable / Legal mortgage charge over the property and obtaining
personal guarantee of additional individual(s)
13.CHARGES :
a. PROCESSING CHARGE (Exclusive of Service Tax):
Page | 48
For Loan (Repayable by installments) One time @ 1% of sanctioned loan
amount Min. Rs.5, 000/- and Max.
Rs.50, 000/-.Plus S.T.
For Mortgage OD (Not reducible ) 0.50% of the Sanctioned/Reviewed
limit min.Rs.5,000/- and max. Rs.30,
000/- on annual basis. Plus S.T.
For Mortgage OD (Reducible) a) 0.50% of the Sanctioned limit
Min.Rs.5,000/- and max. Rs.30, 000/-
for 1st year at the time of original
sanction. . Plus S.T.
b) 0.25% of the Reviewed limit
Min.Rs.2,500/- and max. Rs.15, 000/-
for subsequent years. . Plus S.T.
b. EQUITABLE MORTGAGE FEE :
Limits upto Rs.10.00 lac Rs.5,000/-
Limits exceeding Rs.10.00 lac &upto Rs.10,000/-

Rs.1.00 crore
Limits exceeding Rs.1.00 crore& up to Rs Rs.20,000/-

5.00 crore
14. INSURANCE:
The property mortgaged should be kept insured for full value against the risks of fire,
natural calamities, riots, civil commotion, earthquake, etc. with the usual bank clause
during the period ofadvance.
4. BOI STAR PERSONAL LOAN
• Star Personal Loan Scheme provides loan to meet various Personal

requirements of customers and their family.
• Bank offers loans for marriage expenses, medical expenses, educational
expenses, purchase of consumer durables etc. Maximum quantum of advance
Page | 49
is Rs.10.00 lakhs, depending upon the income, with very attractive interest
rate and easy repayment plan
Eligibility Salaried employees, Professionals and individuals with high net

worth, regular pensioners or family pensioners drawing regular
monthly pension through Branch, Staff members, retired
employees (other than dismissed/compulsorily retired) of our
Bank.
Types of Demand/Term Loan/Overdraft (reducible as per repayment
advance schedule)
Overdraft limit (not reducible as per repayment schedule)
maximum up to Rs.1 lac to confirmed permanent employees of
Central/State Govt. /Reputed Corporates and PSU's.
Purpose Clean/Unsecured loans Secured loans
• Marriage expenses of • Repayment of existing

self, son, daughter or a housing loans from
dependent near relative. other banks/Financial
• Medical Expenses Institutions, etc.
incurred/to be incurred • Repairs/ Renovation/
for self, spouse, Extension of House
children, dependent near property. Education of
relative. self, spouse, children,
• For education of near dependent relatives.
self/spouse/ children/ • Purchase of consumer
near dependent relatives. durables, computers,
• For repairs/ renovation/ professional
extension of existing equipment’s etc.
house/flat.
• Any other personal
expenses of bonafide
nature as approved by
the Bank
Page | 50
Max. Loan Rs.5.00 lacs Rs.10.00 lacs
Min. Size of Minimum size of loan: - At Minimum size of loan: At
loan Metro and Urban Centres: Metro and Urban Centres:
Rs.10, 000/- Rs.10, 000/-
At Rural and Semi Urban At Rural and Semi Urban
centres: No minimum size of centres: No minimum size of
loan. loan.
• 10 times of monthly net • 20 times of monthly

Emoluments in case of Gross Emoluments in
Quantum of
salaried Employees case of salaried
Advance
• 50 % of Gross Annual Employees
Income as per last • 100 % of Gross Average
Income Tax Returns for Annual Income as per
professionals/individuals last three years Income
of high net worth Tax Returns for
professionals/individuals
of high net worth
Repayment Clean/Unsecured loans Secured

36 Equated monthly instalments w.e.f. one month after first loans
disbursement. Exceptional cases up to 60 months Maximum

60 Equated
monthly
instalments
w.e.f. one
month after
first
disbursement
from loan
account.
Page | 51
Security Equitable/Legal Mortgage of commercial or residential properties.
Hypothecation charge on assets acquired.
Collateral security in the form of pledge of gold/gold ornaments, NSC/Indira
VikasPatra, Bonds, Assignment of LIC policies, Relief Bonds etc.
Rate of i. Fully Secured 4.00% + BSS (0.30%) above 1

Interest Year MCLR
(Floating ii. Clean/Unsecured 5.00% + BSS (0.30%) above 1
Rate of Year MCLR
Interest
iii. For Senior Citizens aged 60 years & 3.00% + BSS (0.30%) above 1
p.a. at
above for loans upto Rs.50,000/- Year MCLR
monthly
rests)
iv. Financing Secured under tie-up 4.00% + BSS (0.30%) above 1
arrangements Year MCLR
Page | 52
Net Banking at Bank of India
Bank of India has devised a user-friendly net banking system that enables its customers to
carry out financial transactions with the bank or through the bank from the remotest areas
with complete ease. This specifically customised web portal of Bank of India provides a
virtual bank experience to its users. A user can visit the bank's site and register on it, creating
a user ID and a password for customer verification.
Features of Net Banking with Bank of India

The official website of Bank of India is laden with the latest technological options through
which a customer can avail and utilise various online banking facilities. Some of the prime
features of Bank of India’s Net Banking facilities are as follows:
Corporate
Cash Management Services – This online product is specifically meant for corporate
customers. Quick cheque collections, faster fund release and profitable funds management
services are offered to all the corporate customers at reasonable costs.
Project Finance & Syndication Services – This facility is for those corporate customers
who are engaged in infrastructure development sector or are manufacturers.
Syndication services that are provided by Bank of India are as follows:
• Long Term Loan
• Working Capital: Fund & Non-Fund based
• Bridge Finance
• Acquisition Finance
• Refinancing.
Loans – The bank provides loans for Bullion Banking, Export Finance, Channel Credit,
Discount Future Cash Flows, Foreign Currency Swing Limit, Exporters Gold Card, Traders,
Dual Currency and Swing Limit.
Traders Finance – The services provided under this product category are Bill Finance and
Bank Guarantee.
Rural
Cards – Kisan Credit Card, BOI Shatabdi Krishi Vikas Card, Kisan Samadhan Card and Star
Bhumiheen Kisan Card.
Services – Agri Clinics, Cold Storage, Composite Cash Credit, Crop Finance, Farm
Mechanisation, Financing for Drought Animals and Carts, Land Development, Minor
Irrigation, Poultry Development, Purchase of Land, Rural Godowns and Dairy Development.
Financial Inclusion – Benefits of Pradhan Mantri Jan-Dhan Yojana to rural poor are offered
under this service.
Page | 53
MSME
Facilities for SME borrower – Star Laghu Udyami Samekat Loan, Star SME Liquid Plus,
Star SME Auto Express, Star SME Contractor line of Credit, Star SME Education Plus, Star
SME Term Loan, web-based dealers’ application, Code of Commitment to MSME, BOI Star
Doctor Plus and BOI Star Vyapar.
RETAIL
Saving Deposits – BOI Star Yuva Account (for young students and professionals), BOI Star
Mahila SB Account (for women aged 18 and above), BOI Star Senior Citizen SB Account
(for people aged 57 and above as well as pension beneficiaries), BOI Star Gurukul SB
Account (for teaching and non-teaching staff of schools/colleges, etc.), BOI Salary Plus
Account Scheme, Star Suraksha SB Plus Account and Saving Bank Ordinary Account.
Current Deposits – Normal Current Account, Silver Current Account, Gold Current
Account, Gold Plus Current Account, Diamond Current Account, Diamond Plus Current
Account, Platinum Account and Platinum Plus Current Account.
Term Deposits – Double Benefit Deposit, Fixed Deposit, Short Deposit, Quarterly Deposit,
Monthly Deposit, Recurring Deposit and Star Flexi Recurring Deposit.
Tax Saving – Star Sunidhi Tax-Saving Deposit Scheme and Capital Gain Tax-Saving
Scheme.
Cards
Debit Cards – Master Card, VISA Card, RuPay Card and Proprietary Card.
Credit Cards – Master Card and VISA Card.
Prepaid Cards – VISA Gift Card, VISA International Travel Card
Apart from these facilities, there are a number of other options available for a Bank of India
customer such as opening a new account or applying for loans online or availing other similar
benefits via net banking. Moreover, one can track the status of the loan applied for or availed
online. All this can be done through the 'Apply and Track Online' option provided on the
homepage of the website. The 'Locate Us' search option allows users to track a Bank of India
branch or ATM nearest to him/her.
Page | 54
Mobile Banking with Bank of India
Bank of India also provides its customers with the facility of Mobile Banking. One does not
need to have a computer all the time for doing bank-related transactions. A cellular phone is
enough to make full use of the options available for smooth banking. Various services
provided under the Mobile Banking mode are Star Connect Mobile Banking (a year-round
service), Gift Card Balance Inquiry, IMT – Instant Money Transfer (money is send to the
receiver only by using the receiver’s mobile number through Bank of India’s ATM or retail
internet banking facility), Online Registration for Internet Banking and BOI Star Easy Pay.
Page | 55
CASA TERM INSURANCE
Group Term Life Insurance Scheme for CASA Customers of Bank of India
Our CASA Customers can now get ‘More Benefit’ from their account. Their account will
not only ‘Save’ their hard earned money to fulfill their family’s dream, but also ‘Protect’
these dreams from any unforeseen event.
This is now possible with ‘Star Union Dai-ichi Life’s Group Term Life Insurance’ cover
offered specially for Bank of India’s CASA Customers at a very nominal premium rate.No
Medicals or Documents’. Just give consent in a simple one page form and instantly get
insured.
Key Features:
• Affordable Premium starting at just ` 125/- p.a. only + service tax

• Hassle-free procedure with No Medicals/ Documentation required
• Choice of Sum Assured ranging from ` Rs. 1-5 lakhs in multiples of ` Rs. 1 lakh
• Auto Renewal option to avail the benefits of this plan year after year
• Income Tax Benefits under section 80(C) & 10(10D)
Eligibility Criteria: Resident Indians aged between 18-64 years (maturity upto 65 years)
having Bank account (single/ joint) are eligible for cover under this scheme./
Pre-Existing Diseases: This scheme covers death due to any cause with an exclusion of
below mentioned pre-existing diseases* only –
Heart Conditions Kidney Failure Paralysis Mental Illness

A Stroke Liver Failure Cancer HIV Infection or Aids
Premium Mode & Calculation: It is a yearly renewable policy where the customer pays the
prorate premium as per age at the time of joining. Premium Table -
Age Premium Rate per Annum For 1 Lac Sum Assured (Exclusive of Service
Band Tax)
18-35 Rs 125/-
36 – 50 Rs 259/-
51 – 60 Rs 695/-
61 – 64 Rs 1,190/-
Company is eligible to claim income tax rebate as per instant rules. Where the insurance is
offered by the company the individual staff may request for higher sum assured by
contributing additional premium. Total insurance premium paid by the company is eligible
for tax rebate.
Page | 56
LITERATURE REVIEW
Indian Banking industry is one of the most technologically advanced industries with vast
networks of branches empowered by strong banking systems, their wide range of product and
effective distribution channel capabilities. However, regulatory, structural and technological
factors are significantly changing the banking environment throughout the world. One of the
most important factors that is motivating the growth of the Indian banking institutions is the
liberalization. The financial sector reforms in India were designed to infuse greater
competitive vitality in the banking system. To achieve this objective, the “Narsimhan
Committee” was formed. The Narsimhan Committee report suggested wide ranging reforms
for the Indian banking sector in 1992, including the important one to introduce internationally
accepted banking practices so as to enable Indian banks to achieve service excellence. The
Committee recommended a liberal policy towards the entry norms of private sector banks and
foreign banks into the Indian banking sector. The Interest rate structure has been deregulated
to a great extent and banks have been given a great degree of freedom in determining their
rate structure for deposits and advances, as well as their other product range. Banking has
also become more competitive in respect of branch network. The end result is that market
power is getting shifted from banks to their customers. Financial liberalization has led to
intense competitive pressures, and retail banks are consequently directing their strategies
towards increasing customer satisfaction and loyalty through improved service quality. With
such a high potential in the Indian banking industry, all leading banks are looking ahead to
establish themselves as the most preferred bank by the customers and this can only happen
when they are able to differentiate themselves on the basis of service quality being offered by
their competitors. Retail Banking has immense opportunities in a growing economy like
India. As the growth story further unfolds in India, retail banking is going to emerge a major
driver of economic growth. A.T. Kearney, a global management consulting firm, recently
identified India as the second most attractive retail distribution centre of 30 emergent
markets.
Page | 57
RESEARCH METHODOLOGY
STATEMENT OF THE PROBLEM
As there is immense opportunities of the retail banking in India. This Dissertation is on the
issues and challenges in the retail banking because of the competition of the various banks
and the customer satisfaction of the services which the banks are providing and at the same
time to solve the complaints of the customer and maintaining the sound relationship for the
future and by this way to estimate the future growth of the retail banking.
OBJECTIVES
1. To study the issues and challenges in retail banking
2. To study the recent trends in retail banking
3. To ensure high satisfaction level and reduce percentage of complaints of customers in

retail banking.
4. To estimate the future growth of Indian retail banking.
5. To understand Optimization of retail banking channels.
6. To suggest strategies for improvement in Customer Service.
OPERATIONAL DEFINITION
Retail banking refers to banking in which banking institutions execute transactions directly
with consumers, rather than corporations or other banks. Services offered include: savings
and checking accounts, mortgages, personal loans, debit cards, credit cards, and so forth. And
to know about the customer‘s perceptions about the different products of the bank like current
account, savings account, FD, Smart Saver, Smart Access and others.
DATA COLLECTION
There are several Approach of data collection. The primary sources of data collection are
done through –
1. Observation
2. Questionnaire
Page | 58
Questionnaire: Questionnaire is the method of data collection, which is very much popular,
particularly in big cities. Different modes of questions are put up on the paper and the
particular universe, on which the research is conducted, are asked to fill their responses
The Secondary source includes data collection through:
1. Magazines
2. Company Website
SAMPLING TECHINIQUE
(a) Sampling Unit:- Walk in customers and the company database of high ended customer.
(b) Sample Size:- Sample size for this project was restricted to 50 respondents. Since it was
not possible to cover the whole universe in the available time period, it was necessary for me
to take a sample size of 50 respondents
(c) Sampling Method:-
There are three methods of sampling:-
1. Probability Sampling:
2. Non-Probability Sampling:
3. Quota
For this research work Non- Probability Convenience Sampling has been chosen because
time limit for the completion of the work is limited and also managers and employees were
not available all the time.
Area of Study- Bank of India, Borivali West, Mumbai
Duration- 3 months
Page | 59
DATA COLLECTION METHOD
Data for the present study is collected from two sources:
1. Primary Data:.
The data are collected directly from the universe by conducting interviews, etc. these are the
original sources from which the researcher directly gathers data which are not previously
referred.All the people from different profession were personally visited and interviewed.
They were the main source of primary data. The method of collection of primary data was
personal direct interview through a structured questionnaire.
The primary data was collected by means of survey. Questionnaires were prepared and
customers of BANK OF INDIA were approached to fill up these questionnaires. The filled up
information was later analyzed to obtain the required information.
2. Secondary Data:
The data are collected from the secondary sources such as magazines, journals, etc.
These sources consist of already variable data in the form of statements, and reports,
which may include sensory reports, financial statements of the company, reports of
governments departments, etc. It was collected from internal sources. The secondary data
was collected on the basis of organizational file, official records, newspapers, magazines,
management books, preserved information in the company’s database and the website of
the company.
Both Primary and Secondary sources was used for data collection.
For primary source, Questionnaire was used. For secondary source Internet, Magazines,
and Newspaper etc were used.
Page | 60
RESEARCH DESIGN
Research design is simply the framework or plan for a study, used as a guide in
collecting and analyzing data.
There are three types of Research Design:-
1. Exploratory Research Design
2. Descriptive Research Design
3. Casual Research Design For the study, Exploratory Research Design was undertaken
to classify the investors on their risk and return profile.
PLAN OF ANALYSIS
The data obtained from the structured questionnaire was interpreted and recorded. The
table and graph were constructed using data from the questionnaire through simple
techniques like average, percentage, ratios etc. which was then used for analyzing the
acquired data.
Page | 61
DATA ANALYSIS AND INTERPRETATION
Profile of Respondents
Respondents were the customers BANK OF INDIA BORIVALI WEST LINK ROAD of
age group 25-65 years
1.The Branch timings (9:30 am to 2:15 pm from Monday to Saturday) are convenient
Parameter In numbers In percentage
Very Good 45 90
Good 5 10
Satisfactory 0 0
Could be better 0 0
Total 50 100
BRANCH TIMINGS
Branch Timings
C O U L D B E B E T T E R 0%
S A T I S F A C T O R Y 0%
GOOD 10%
VERY GOOD 90%
Interpretation The purpose of this question is to know the whether the bank timings
are convenient for the customer, 90% of respondents opinioned that bank timings are
Page | 62
very good and 10% of respondent opinioned that timings are good. None of the
customers have any problem with respect to timings.
Inference: As 90% responded very good, it seems high number are happy with bank
timings.
2. Which type of retail loans products does customer prefers?
Retail Loans
Types Customers Preferences
Home loan 30%(15)
Education loan 40%(20)
Loan against property 26%(13)
Vehicle loan 4% (2)
Total 100% (50)
Retail Loans
40%
35%
30%
25%
20%
15%
10%
5%
0%
Home loan Education Loan Loan against Vehicle loan
property
Retail Loans
Interpretation: Consumer prefer more of education loans for higher studies, then home loans
for future gains, then loan against property for emergence need and then finally for vehicle
loans.
3. Which type of retail deposits products does customer prefers?
Page | 63
Retail Deposits
Types % Customer preferences
Salary 15 8
Savings 30 15
Current 45 23
Terms 10 4
Total 100 50
Retail Deposits
10% 15%
Salary
Savings
Current
30%
45% Terms
Interpretation: 45% of the customers prefer to current retail deposits for daily business and
transaction i.e. receipt and payment so that can whenever they want they can withdraw and
deposits during working day, 30% of customer prefer saving retail deposits for gaining some
return on their deposits, 15% prefer salary and 10%prefer terms deposits to gain some
benefits after 3 to 5 years for future needs and requirements.
4. Which type of payment methods prefer most by customer?
Payment Methods Customer preferences

%
RTGS / NEFT 18 35
Cheques 25 50
E- Banking 7 15
Page | 64
Payment Methods
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
RTGS/NEFT Cheques E-Banking
Interpretation: It is found that consumers mainly prefer cheques as means for payment then
after RTGS / NEFT on request of other parties and finally E banking for purchase of products
but less for any payment transaction.
5. Other than deposits and loans services which other ancillary services does customer prefers
the most?
Respondents ( Respondents
Ancillary Services
numbers ) (%)
Public Provident Fund 18 35
Locker 10 20
Mutual Funds 4 7
Share trading 15 30
Bill Payments 1 3
Insurance 2 5
Page | 65
Ancillary Services
Public Provident Fund Locker Mutual Funds
Share trading Bill Payments Insurance
3% 5%
35%
30%
7% 20%
Interpretation : 35% of respondents favour public provident fund as investment as it provide a

tax benefit and provide a huge lump sum amount after long maturity, 30% prefer share
trading, 20% prefer locker facilities as safeguard of documents, gold and some cash,7%
prefer for mutual funds, 5% for Life Insurance products and 3% for various bill payments like
electricity bill, telephone and mobile bills, etc.
6. Which of the following benefits accrue to you, while using banking services?
In
Benefits %
numbers
Time Saving 40 20
Easy Processing 5 3
Products offered 30 15
Easy Fund Transfer 25 12
Total 100 50
Page | 66
BENEFITS
Benefits
25
20
15
10
0
Time Saving Easy Processing Products offered Easy Fund transfer
Interpretation: Most of the respondents think that the major benefit from banking services is
time saving facility. Because the major problem which the respondents faced is time problem
so banking eases their lives and save their time by providing various services.
7. Is Branch Personnel were aware of Products and Services and responded to your queries?
Parameter In numbers %
Very good 38 75
Good 10 20
Satisfactory 2 5
Page | 67
Products and services
SATISFACTORY
GOOD
VERY GOOD
0% 10% 20% 30% 40% 50% 60% 70% 80%
Products and services
Interpretation: 75 % respondents says that branch personnel responded to their queries and is
very good, 20 % says to be good and rest 5% says satisfactory. So 75 % of respondents says
that branch personnel were aware with products and services offered and so respondents were
satisfied.
8. Is the branch personnel have done a “Need analysis” and “Risk assessment” before
recommending any investment option?
Parameter In Numbers %
Very good 34 68
Good 11 22
Satisfactory 3 6
Could be better 2 4
Page | 68
Branch Personnel
Could be better 4
Satisfactory 6
Good 22
Very good 68
0 10 20 30 40 50 60 70 80
Interpretation : 68% of the respondents says the risk assessment before recommending any
investment is very good, 22% of respondents replied that it is good, 6% of respondents says
that it is satisfactory and only 4% replied it could be better.
So from above interpretation it says that 68% of respondents says that branch personnel does
a need analysis and risk assessment before recommending any investment option, so too
many respondents have positive response.
9. Is the branch personnel have been very helpful and courteous?
Parameter Numbers %
Very good 43 85
Good 5 10
Satisfactory 2 5
Page | 69
Parameter
90
80
70
60
50 %
40
30
20
10
0
Very good Good Satisfactory
Interpretation: 85% of respondents says that branch personnel have been very helpful and
courteous, 10% of respondents replied that it is good and only 5% respondents says that it is
satisfactory.
As 85% of respondents says that branch personnel were helpful and courteous, so too many
of respondents are satisfied.
10. To what extent is you satisfied with your banks’ customer services?
Banking services TOTAL NO.

Highly satisfied (1) 25
satisfied (2) 15
Neutral (3) 5
Dissatisfied (4) 4
Highly dissatisfied (5) 1
TOTAL 50
Page | 70
Banking Services
30
25
20
15
10
0
Highly Satisfied Satisfied Neutral Dissatisfied Highly
Dissatisfied
Interpretation: The most of the customers are really liked the facilities provided by banks as
they strongly agree that the facilities are good for them so they like to avail the bank customer
services provided by the different banks and the result shows that 50% respondents are highly
satisfied with the bank customer services provided by their bank and 30% respondents are
satisfied with the bank customer services provided by their bank and 7% respondents are
dissatisfied with the bank customer services by their bank.
OPPORTUNITIES AND CHALLENGES
Retail banking has immense opportunities in a growing economy like India. As the growth
story gets unfolded in India, retail banking is going to emerge a major driver. How does the
world view us? The BRIC report is viewing India as an economic superpower. A.T. Kearney,
a global management-consulting firm, recently identified India as the “second most attractive
retail destination” of 30 emergent markets.
The rise of Indian middle class is an important contributory factor in this regard. The percentage
of middle to high-income Indian households is expected to continue rising. The younger
population not only wields increasing purchasing power, but as far as acquiring personal debt
is concerned, they are perhaps more comfortable than previous generations. Improving
Page | 71
consumer purchasing power, coupled with more liberal attitudes towards personal debt, is
contributing to India’s retail banking segment.
The combination of above factors promises substantial growth in retail sector, which at present
is in the nascent stage. Due to bundling of services and delivery channels, the areas of potential
conflicts of interest tend to increase in universalbanks and financial conglomerates. Some of
the key policy issues relevant to the retail-banking sector are: financial inclusion, responsible
lending, and access to finance, long-term savings, financial capability, consumer protection,
regulation and financial crime prevention.
What are the challenges for the industry and its stakeholders
First, retention of consumers is going to be a major challenge. According to a research by
Riechheld and Sasser in the Harvard business review, 5percent increase in customer retention
can increase profitability by 35 percent in banking business, 50 percent in insurance and
brokerage, and 125 percent in the consumer credit card market. Thus, banks need to emphasis
on retaining consumer and increasing the market share.
Second, rising indebtedness could turn out to be a cause for concern in the future. India’s
position, of course, is not comparable to that of developed world where household debt as a
proportion of disposable income is much higher. Such a scenario creates high uncertainty.
Expressing concerns about the high growth witnessed in consumer credit segments the reserve
bank has, as a temporary measure, put in place risk containment measures and increased the
weight from 100 percent to 125 percent in the case of consumer credit including personal loans
and credit cards.
Third, information technology poses both opportunities and challenges. Even with ATM
machines and Internet Banking, many of the customers still prefer the personal touch of their
neighborhood branch bank. Technology has made it possible to deliver services throughout
branch network, providing instant updates to checking accounts and rapid movement of money
for stock transfers. However, this dependency on the network has bought IT department’s
additional responsibilities and challenges in managing, maintaining and optimizing the
performance of retail banking networks. Illustratively, ensuring that all bank products and
services are
available, at all times, and across the entire organization is essential for today’s retail banks to
generate revenue and remain competitive. Besides, there are network management challenges,
Page | 72
whereby keeping this complex, distributed networks and applications operating properly in
support of business objectives becomes essential. Specific challenges include ensuring that
account transaction applications run efficiently between the branch offices and data centers.
Fourth, KYC Issues and money laundering risks in retail banking is yet another important
issue. Retail lending is regarded as a low risk area for money laundering because of the
perception of the sums involved. However, competition for clients may also lead to KYC
procedures being waived in the bid for new business. Banks must also consider seriously the
type of identification documents the will accept and other processes to be completed. The
Reserve Bank has issued details guidelines on application of KYC norms in November 2004.
Trends In Retail Banking
Growing a retail banking business is becoming increasingly challenging. The yield curve is
flattening, reducing banks’ net interest margin. Competition is intensifying, as new, non-
traditional players enter the retail banking space. And consumer preferences for financial
products, payment methods and distribution channels continue to evolve, providing revenue
opportunities, but also introducing new operational challenges.
The changing dynamics of the retail banking business have significant implications for
financial institutions. In order to successfully compete in this environment, banks must provide
a distinctive customer experience and offer innovative product solutions in order to
differentiate their value proposition in the marketplace.
Key trends in retail Banking are:
1. Bifurcation of the retail banking business
• National- Consolidate- Credit Cards, Home Equity Loans Mortgages
• Local- Fragmented- Deposits, Installment Loans, Small Business Loans
2. Lack of differentiation in retail financial services:
Many financial institutions are struggling to differentiate their value propositions
in the retail banking market.
• Free checking is now offered by all or most financial institutions.
• Most institutions no longer charge for online banking or online bill payment.
• Extended branch hours are increasingly common in many markets, as banks
• seek to increase customer convenience.
3. Proliferation and growth of electronic payments: In the last 25 years, the range of payment
methods available in the market has exploded. In addition to cash, checks, and credit cards,
Page | 73
consumers can now use one of an expanding array of electronic payment options that includes
debit cards, prepaid cards, online bill payment, automatic bill payment, and P2P services.
4. Increasing demand for ATM access
Strategies for Ensuring high Customer Satisfaction
• Set service expectations and standards of behavior- this means that managers must set
clear service expectations and standards of behavior, beginning with defining "excellent
service."
• Identify and eliminate barriers and obstacles. Policies that do not make sense;
procedures that get in the way; and rules, norms that make satisfying customers difficult
all need to be eliminated to successfully improve service
• Learn and develop skills. Clearly, personnel at all levels should learn new skills related
to service excellence and serve the customer.
• Listen to your customers. Measurement of customer satisfaction can be a powerful way
to improve service if the feedback is not focused on punishment. Managers need to help
staff hear, first hand, how they are doing. For this feedback to be effective, however, it
must be tied to specific targets and goals and needs to be frontline driven
• Reinforce and support continuous improvement. The real challenge is keeping the
energy, learning, and improving alive and going
FUTURE OF RETAIL BANKING
How do we see the future of retail banking? What are the major attributes of the shape of things
to come in this sector?
First, customer service should be the be-all and end-all of retail banking. The other day a
document released by the British Bankers Association, entitled UK Retail Banking Manifesto:
addressing the challenges that lie ahead for the industry and its stakeholders on September 29,
2004 came to my notice. This document analysed the key policy issues relevant to the retail
banking sector and highlighted the role of financial inclusion, responsible lending, access to
finance, and consumer protection. It is in this context that that one is reminded of the needs to
develop the standards and codes for banking.
The contribution of the Committee on Procedure & Performance Audit on Public Services
(CPPAPS) (Chairman: Shri S.S. Tarapore) has been invaluable and has provided great insight.
Based on the recommendation of the CPPAPS, the Annual Policy Statement for 2005-06
announced the decision to set up an independent Banking Codes & Standards Board of India
Page | 74
on the model of the mechanism in the UK in order to ensure that comprehensive code of
conduct for fair treatment of customers is evolved and adhered to. The codes and standards,
together with the institutional mechanism to monitor them, are expected to enhance the quality
of customer service, to the individual customer in particular. The codes will bring about greater
transparency in the system and also tackle the issue of information asymmetry. The Board
would function as an industry-wide watchdog of the banking code and ensure that the banks
comply with the banking codes. The codes would establish the banking industry’s key
commitments and obligations to customers on standards of practice, disclosure and principles
of conduct for their banking services. The Board will monitor compliance with the Codes by
the affiliated banks..
Second, sharing of information about the credit history of households is extremely important
as far retail banking is concerned. Perhaps due the confidential nature of banker-customer,
banks have a traditional resistance to share credit information on the client, not only with one
another, but also across sectors. Globally, Credit Information Bureaus have, therefore, been set
up to function as a repository of credit information - both current and historical data on existing
and potential borrowers.
The database maintained by these institutions can be accessed by the lending institutions.
Credit Bureaus have been established not only in countries with developed financial systems
but also in countries with relatively less developed financial markets, such as, Sri Lanka,
Mexico, Bangladesh and the Philippines. In Indian case, the Credit Information Bureau (India)
Limited (CIBIL), incorporated in 2000, aims at fulfilling the need of credit granting institutions
for comprehensive credit information by collecting, collating and disseminating credit
information pertaining to both commercial and consumer borrowers. At the same time banks
must exercise due diligence before declaring a borrower as defaulter.
Third, outsourcing has become an important issue in the recent past. With the increasing market
orientation of the financial system and to cope with the competition as also to benefit from the
technological innovations such as, e-banking, the banks are making increasing use of
"outsourcing" as a means of both reducing costs and achieving better efficiency. While
outsourcing does have various cost advantages, it has the potential to transfer risk, management
and compliance to third parties who may not be regulated. A recent BIS Report on
“Outsourcing in Financial Services” developed some high-level principles. A basic
requirement in this context is that a regulated entity seeking to outsource activities should have
in place a comprehensive policy on outsourcing including a comprehensive outsourcing risk
Page | 75
management programme to address the outsourced activities and the relationship with the
service provider. Application of these principles in the Indian context is under consideration.
Finally, retail banking does not refer to lending only. In the whole story of retailing one should
not forget the role played by retail depositors. The homemaker, the retail shop keeper, the
pensioners, self-employed and those employed in unorganized sector - all need to get a place
in the banks. It is in this backdrop that the Annual Policy for 2005-06 pointed out issues relating
to financial exclusion and had announced that the RBI would implement policies to encourage
banks which provide extensive services while disincentivising those which are not responsive
to the banking needs of the community, including the underprivileged.
Furthermore, the nature, scope and cost of services need to be monitored to assess whether
there is any denial, implicit or explicit, of basic banking services to the common person and
banks have been urged to review their existing practices to align them with the objective of
financial inclusion.
Page | 76
SWOT ANALYSIS
STRENGHTS :
• It has an extensive distribution network comprising of 5100 branches.
• The Bank has a strong retail depository base & has good number customers.
• Bank boasts of a strong brand equity.
• ISO 9001 certification for its depository & custody operations & for its backend
processing of retail operation & direct banking operation.
• The bank has a near competitive edge in area of operations.
• The bank has a market leader in cash settlement service for the major stock exchanges
in its country.
• BANK OF INDIA is one of the largest public sector bank working in India.
• It has a highly automated environment in terms of information technology &
communication system.
• Infrastructure is best.
• It has many innovative products like kids Advantage scheme, NRI services.
WEAKNESS :
• Some time acount opening and delivery of cheque book take comparatively more time.
• Lack of availability of different credit products like CC Limit, Bill discounting
facilities.
OPPORTUNITY :
• Branch expansion
• Door step services
• Greater liberalization in foreign ownership via FDI in Indian Pvt. Sector Banks.
Page | 77
• CC/ OF Facilities.
• Infrastructure improvements & better systems for trading & settlement in the govt.
securities & foreign exchange markets.
THREATS:
• The bank has started facing competition from players like SBI, ICICI Bank in the
finance market itself. This reduce the profit margins in the future.
• Some Pvt. Banks have 7 days banking.
Page | 78
SUGGESTIONS AND RECOMMENDATIONS
Suggestions are always considered to be the most important part of any project report because
for every pros there is cons associated with and to reduce the effect of latter, following
suggestions must be taken into consideration in regard to retail banking.
• The Branch personnel should listen to customer patiently and should be able to respond
to their queries and clarifications because some customer are new to some of the bank
services and until and unless they will come to know about those services they will be
not be satisfied.
• With reference to question no. 8, larger number of branch personnel should do ‘Need
Analyses’ & ‘Risk Assessment’ before recommending any investment option to
customer.
• With reference to table no.9, more branch personnel should be aware of Product and
Services and responded to customer’s queries.
• BANK OF INDIA should look into the feedback provided by customer and takes
necessary action wherever required.
• With reference to question no. 4, bank should focus on Instant FD facility &E-cheques
as small 10% of customer likes this.
• Some time the customer has to wait at the Teller Counter, the service should be improve
by appointing more staff
• Information in the Bank Statement should be more clear, easy to understand and
adequate.
• Along with customer satisfaction employee’s participation must be kept active by

appraising their salary as they’ll as their work.
• Frequently customers must be kept delighted by providing them regards and by

maintaining customer relationship so that their interest can be kept maintained.
Page | 79
• The YES bank should focus on business and service portfolio for a reputation of being
niche players in the industry.
• The bank should concentrate on few reliable high net worth companies and individuals
rather than cater to the mass market.
• As 10% customer response is not good for the clarification of the queries response
towards them so bank personnel should improve this issue because customer is a source
through which business can be increase and satisfy customers is a source to create more
customers, with reference to table no.4
• As it is only 10% respondent said that sometime there was a error in the transaction
happened so to avoid these kinds of errors should be avoided because it is unnecessarily
results in wastage of time for both staff members and service rendered, reference to
table no. 9
• Their should increase in the number of events organize by bank because it is a

opportunity for the bank to introduce new products and services and at the same time it
is a open opportunity for the customer to come forward and suggest its views which
might prove to add the values for the bank because 10% customer still not have a good
response, with reference to table no.13
• Communication with the customer should improve and increase so bank can easily
response towards them and in result the customer would be satisfy and no question that
they will recommend the YES Bank to their friends and relatives because 2% customer
are no responding it in a positive manner.
Page | 80
SUMMARY OF THE PROJECT
❖ Retail Banking deals with lending money to consumers which include a wide variety
of loans, including credit cards, mortgage loans and auto loans.
❖ Retail Banking refers to banking in which banking institution execute transactions
directly with consumers, rather than corporations or other entities.
❖ It is generally conceived to be the provision of mass market banking services to
private individuals.
❖ The aim of retail banking industry is to satisfy customers and deepen their
relationships.
❖ This can be achieved by taking the benefits of every cross-selling and upselling
opportunity.
❖ The availability of advanced technologies will help in boosting the cross-selling,
increase customer retention and differentiate the brands in the retail banking sector.
❖ The retail banking industry is facing stiff competition and the current scenario is that
of the survival of the fittest.
❖ To improve the customer services and relationship management many of the retail
banks adapt information technology that has helped in integrating and consolidating
banking operation.
❖ Retail banks are increasing their cross-selling and up-scaling activities for private
banking clients with the intention of increasing their customer base and improve their
customer relation.
❖ A bank loans money to a business based on the value of the business and its perceived
ability to service the loan by making payments on time and in full.
❖ Bank personnel also do not get involved in any aspect of running a business to which
a bank grants a loan.
Page | 81
CONCLUSION- THE FUTURE GROWTH
The project aims to study the retail banking operations of BANK OF INDIA. The study was
very fruitful, it yielded the desired results, helped me understand the retail banking. The study
also helps in what are the customer opinions towards operations of bank & its various product
and services.
Any serious discussion of the future of the retail banking industry eventually raises a basic
question: will future customers still need retail banks? The answer, it turns out, depends on
banks themselves. With technology and nonblank businesses providing new options for
safeguarding and managing their finances, customers will continue to depend on banks only as
long as banks can provide service and value that cannot be found anywhere else.
The need to become highly customer focused has forced the slow-moving public sector banks
to adopt a fast track approach. The unleashing of products and services through the net has
galvanized players at all levels of the banking and financial institutions market grid to look a
new at their existing portfolio offering. Conservative banking practices allowed.
Indian banks to be insulated partially from the Asian currency crisis. Indian banks are now
quoting at higher valuation when compared to banks in other Asian countries (viz. Hong Kong,
Singapore, Philippines etc.) that have major problems linked to huge Non Performing Assets
(NPAs) and payment defaults. Co-operative banks are nimble footed in approach and armed
with efficient branch networks focus primarily on the ‘high revenue’ niche retail segments.
The Indian banking has finally worked up to the competitive dynamics of the ‘new’ Indian
market and is addressing the relevant issues to take on the multifarious challenges of
globalization. Banks that employ IT solutions are perceived to be ‘futuristic’ and proactive
players capable of meeting the multifarious requirements of the large customer’s base.
BANK OF INDIA has a great opportunity to increase their market potential in the present
market situation.
Page | 82
LIMITATIONS OF PROJECT
➢ As a research is based on a sample, therefore, the findings may not reveal the factual
information about the research problem, though an utmost care will be taken to select a
truly representative sample.
➢ There may be some bias in the responses of the respondents which cannot be ruled out
fully.
➢ The sample size of only 100 was taken from the large population for the purpose
of study, so there can be difference between results of sample from total
population
➢ Bank of India officers were reluctant to go in to details because of their busy
schedules.
➢ All the information in the bank was confidential, so we were not allowed to go some
important files like NPA files.
➢ All work was on PC and we were not allowed to operate it.
➢ Only some data was provided by bank.
➢ Dependence mainly on circulars.
➢ Less of practical work.
Page | 83
BIBLIOGRAPHY
Websites
www.bankofindia.com
www.smera.com
www.smeworld.org
http://economics.about.com/cs/finance/a/india_banking_2.htm
Manuals
Retail banking manual - BANK OF INDIA
Instructions for advances - BANK OF INDIA
Page | 84
ANNEXURE
1.Is the Branch timings (9:30 am to 2:15 pm from Monday to Saturday) are convenient?
a. Very Good
b. Good
c. Satisfactory
d. Could be better
2.Which type of retail loans products do you prefer?
a. Home Loan
b. Education Loan
c. Loan against property
d. Vehicle loan
3. Which type of retail deposits products do you prefer?
a. Salary
b. Savings
c. Current
d. Terms
4.Which type of payment methods prefer most by you?
a. RTGS/NEFT
b. Cheques
c. E-Banking
5. Other than deposits and loans services which other ancillary services do you prefer the
most?
a. Public Provident Fund

b. Locker
c. Mutual Fund
d. Share trading
e. Bill payments
f. Insurance
6. Which of the following benefits accrue to you, while using banking services?
a. Time Saving
b. Easy Processing
c. Products offered
Page | 85
d. Easy Fund Transfer
7.Is Branch Personnel were aware of Products and Services and responded to your queries?
a. Very Good
b. Good
c. Satisfactory
8. Is the branch personnel have done a “Need analysis” and “Risk assessment” before
recommending any investment option?
a. Very Good
b. Good
c. Satisfactory
d. Could be better
9.Is the branch personnel have been very helpful and courteous?
a. Very Good
b. Good
c. Satisfactory
10. To what extent is you satisfied with your banks’ customer services?
a. Highly Satisfied
b. Satisfied
c. Neutral
d. Dissatisfied
e. Highly Dissatisfied
Page | 86

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AMITY GLOBAL BUSINESS SCHOOL MUMBAI

SUMMER INTERNSHIP REPORT ON

URMILA MADHAB GHOSH

COURSE: MASTER OF BUSINESS ADMINISTRATION

ENROLLMENT NO: A30201916017

BATCH 2016 – 2018

UNDER THE GUIDANCE OF

PROF. NAVEEN ROHATGI

Name: Urmila Ghosh

Enrolment No.: A30201916017

Name of the Guide: Prof. Naveen Rohatgi

Signature of the guide:

Sr. Particulars Page

My project aims on Customer Retail Banking at Bank of India.

Contribution of foreign branches in the global business of the Bank as at 30.06.2017 is as

Business Mix 27.27%

Products offered by Bank of India:

➢ Commercial bank is a type of financial institution that provides services such as

➢ Retail banking also known as Consumer Banking is the provision of services by a

➢ A mortgage loan, also referred to as a mortgage, is used by purchasers of real property

POTENTIAL FOR RETAIL IN INDIA: IS SKY THE LIMIT

But how competitive are the players

Typical products offered in retail banking include:

• A transaction account, checking account, or demand deposit account is a deposit

• A mortgage loan, also referred to as a mortgage, is used by purchasers of real property

4. Home equity loans:

6. Certificate of deposits / Term deposits:

• A certificate deposits a money deposit at a banking institution that cannot be

General guidelines for interest rates include:

• A traveller's cheque is a medium of exchange that can be used in place of hard

BOI RETAIL DEPOSITS

1. BOI STAR YUVA ACCOUNT:

ACCOUNT BOI STAR YUVA SB ACCOUNT SCHEME

AQB Criteria 1. Age group 21-35 years:-

2. BOI STAR MAHILA SB ACCOUNT:

Eligibility Women in the age group of 18 years and above.

3. BOI STAR SENIOR CITIZEN SB ACCOUNT:

Target Group Citizens who have completed 57 years and Senior

No Daily Minimum Balance Requirement

4. SB ACCOUNT FOR PENSIONERS:

1. JAI JAWAN SALARY PLUS ACCOUNT FOR DEFENCE PERSONNEL

Sr. Particulars Commissioned Officers Non-Commissioned

ii) Nil Annual Renewal Charges

Eligibility All Teaching and Non-Teaching staff of

The Rate of interest on overdraft is proposed to be Base rate

Eligibility: All employees on Menu option OAAC

Please note that scheme code and special charge

Free Platinum Debit Card to employees with

(Group Insurance Policy taken at

Demand Drafts / Pay orders 1 DD / PO free with maximum amount of Rs

• Wider entry age up to 65th birthday.

Nomination facility Available as per the prevailing banking norms

1. SILVER CURRENT ACCOUNT

Ancillary Services • Phone Banking

• Free statements of Account

Cheque Book Free 25 Cheque leaves per Quarter

Special Privileges • 25 % Waiver of Processing Charges on Retail Loans*

2. GOLD CURRENT ACCOUNT

Cash Deposit Facility Unlimited

Base Branch Cash Unlimited

Cheque Book Free 50 Cheque leaves per Quarter

Discount / Relaxation in Up to 5 basis point (0.05%) Merchant Discount on Credit card

Ancillary Services • Phone Banking