Company Profile Boi

7/28/2019 Company Profile Boi

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COMPANY PROFILE

Bank of India


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Bank of India was founded on 7th September 1906 by a group of eminent businessmenfrom Mumbai. The Bank was under private ownership and control till July 1969 when it was

nationalized 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 nationalized banks.

The Bank has 2528 branches in India spread over all states/ union territories including 93

specialized branches. These branches are controlled through 47 Zonal Offices. There are 19

branches/ offices (including one representative office at Jakarta, Indonesia) abroad located in 10

countries. The Bank came out with its maiden public issue in 1997. Total number of shareholders

as on 31/3/2009 is 4,03,225.

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 nationalized banks to establish a fully computerized branch

and ATM facility at the Mahalaxmi Branch at Mumbai way back in 1989. The Bank is also a

Founder Member of SWIFT in India. It pioneered the introduction of the Health Code System in

1982, for evaluating/ rating its credit portfolio.

The Bank's association with the capital market goes back to 1921 when it entered into an

agreement with the Bombay Stock Exchange (BSE) to manage the BSE Clearing House. It is an

association that has blossomed into a joint venture with BSE, called the BOI Shareholding Ltd.

to extend depository services to the stock broking community.

Bank of India was the first Indian Bank to open a branch outside the country, at London,in 1946, and also the first to open a branch in Europe, Paris in 1974. The Bank has sizable

presence abroad, with a network of 19 branches (including one representative office at Jakarta in

Indonesia) at key banking and financial centers viz. London, New York, Paris, Tokyo, Hong-

Kong, and Singapore. The international business accounts for around 22% of Bank's total

business.


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The Bank has a strong position in financing foreign trade. Over 270 branches provide

export credit. The expertise in this area has enabled the Bank to achieve a leading position in

providing export credit in certain areas like diamond export.

The Bank has identified specialized target groups to develop core advantage for future

growth. The Bank, as on March 2011, had 93 specialized branches comprising Corporate

Banking Branches to undertake very large credit business, Overseas Branches specializing in

Foreign Exchange Business, NRI Branches which specially cater to the requirements of Non-

Resident Indians, Capital Market Branches which undertake all activities relating to capital

market such as collection of applications, processing of refund orders, Merchant Banking etc.

Commercial & Personal Banking Branches cater to the requirements of high net worth

customers. Apart from this, the Bank also has specialized Branches for Asset Recovery, Small

Scale Industries, Hi-tech Agriculture Finance, Lease Finance and Treasury.

To effectively meet the ever-growing challenges and competition, the Bank has made a

good headway in bringing about technological upgradation. MIS and critical functions of

controlling offices have been computerized. At present, the operations at about 793 branches are

totally computerized. Another 1111 branches operate in partially computerized mode. New

facilities such as, Telebanking, ATM & Signature Retrieval Systems have been introduced in a

progressing manner to add value to services. Telebanking facilities with Fax on Demand facility,

Remote Access Terminals for Corporate Customers are now available at many branches. The

Bank has installed ATMs in Mumbai and other centres in the country. The Bank is a member of

the RBI's VSAT Network and has installed 39 VSATs linking strategic branches/offices. The

Bank is making a paradigm shift from branch automation to bank automation and is in the

process of implementing a Multi-Branch Banking Project, which facilitates City-wise

Connectivity of Computerized Branches. As on March 2012 the connectivity has been done in 5

cities DELHI, MUMBAI, PUNE, BANGALORE, and HYDERABAD. The Bank is in the

process of installing BOINET, a Wide Area Network for providing an inter- and intra-city

connectivity, as a part of enhancing its decision support system.


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The Bank's corporate personality and philosophy are fully reflected in the emblem, which

is a five-pronged Star -- a harmonious blend of traditional and the functional. The elongated

prong pointing upwards conveys the Bank's drive to achieve ascending goals. The Star is a

beacon and guide to those in need of direction.

Star Performance

The Financial results of the Bank for the Year 2012-13 were adopted by the Bank's Board

of Directors at its meeting held in Mumbai on 30th April, 2013 and declared the following

results:

PERFORMANCE HIGHLIGHTS

% Growth During Quarter ended March

(Rs. in Crore) FY 12 FY 13

% Growth 2012 2013

Operating Profit 1412 2030 43.8 447 719 60.8

Net Profit 505 851 68.5 90 283 214

Operating Results

Operating Profit surges to Rs.2030 crore, recording an increase of Rs .618 crore or

growth of 43.8% over the previous fiscal. Likewise, Net Profit zooms to Rs. 851 crore, or

68.5% growth. During the quarter ended March 2012, operating profit stood at Rs.719

crore and net profit at Rs.283 crore as compared to Rs.447 crore and Rs.90 crore

respectively in the corresponding quarter a year ago.


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Earning per share (EPS) scaled to Rs.17.43 at March-end 2013 as compared to Rs.7.91

at March-end 2012. Likewise, Book value per share has jumped to Rs.72.15 from

Rs.54.33, a year ago.

Return on Assets has increased from 0.78% in FY 12 to 1.16% in FY 13. Likewise, Asset

Utilisation Ratio moved up from 2.17% to 2.77%. Return on Net worth improved

significantly from 19.68% in FY 12 to 27.57% in FY 13.

Capital Adequacy Ratio improved to 12.02% at March-end 2013 from 10.68% at March-

end 2012.

Non-Interest Income went up from Rs.1117 crore in FY 12 to Rs.1642 crore during FY

13 showing an increase of Rs.525 crore or 47% growth. The ratio of Non-Interest Incometo Net Income improved from 37.49% in FY 12 to 44.65% in FY 13. Non-Interest

income has covered the entire operating expenses almost at 99.6% during FY 13 as

compared to 72.07% in FY 12.

Cost ratios have been coming down steadily. Operating Cost to average working funds

declined from 2.35% in FY 12 to 2.25% in FY13 and Operating Cost to Net Income has

declined from 52.02% in FY 12 to 44.82% in FY 13. Likewise, Staff Cost to Average

Working Funds has declined from 1.67% to 1.54% and Staff Cost to Net Income

declined from 36.93% to 30.60%.

Global business mix touched Rs.1, 09,000 crore.

Global Deposits touched a level of Rs.64454 crore on 31.03.2013 recording a growth of

8.16% over the previous year-end. Domestic Deposits grew by Rs.4794 crore or 9.74% to

reach Rs.54030 crore at March-end 2013.

Global Advances (Gross) up by 9.68% to reach Rs.44491 crore. Domestic Advances

grew by 8% to touch Rs.33013 crore, while Foreign Advances rose by 14.79% to reach

Rs.11478 crore.


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Priority Sector Advances of the Bank at Rs.12546 crore as at March-end 2013 worked

out to 49.95% of Net Adjusted Credit and Agricultural Advances of Rs.4547 crore stood

at 18.10 % of the Net Adjusted Credit, thereby surpassing the stipulated ratios at the

national level.

Gross NPA has declined from 9.37% at March-end 2012 to 8.62% at March-end 2013.

Likewise, Net NPA has declined from 6.02% to 5.59%.

The Bank has 2562 Branches (2541 Indian and 21 Foreign). The Bank has 117

Specialized Branches catering to niche clientele and 124 Extension Counters in India.

The Bank has opened 2 representative Offices, one each at Shenzhen, China and Ho Chi

Minh city, Vietnam during the year.

New Strategies Initiated

Bank assurance: The Bank has entered into strategic alliance with ICICI Prudential Life

Insurance Company Ltd. for selling the Life insurance products through its select

branches on referral basis, having potential of earning substantial fee income.

Distribution of Mutual Fund Products: The Bank has tied up with DSP Merrill Lynch forselling their products of Mutual Funds through its select branches.

Retailing of Government Securities: The Bank has launched jointly with the Securities

Trading Corporation of India Ltd. (STCI) for retail sale of Government Securities

through its select branches for expanding its fee income direction.

Main Objectives of the Bank

Objective of theBanking Companies (Acquisition and The Transfer of undertakings) Act,

1970:


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The main objective of the Banking Companies (Acquisition and Transfer of undertakings) Act

1970 under which the undertaking of the bank was taken over by the Central Government is as

under: An Act to provide for the acquisition and transfer of the undertakings of certain Banking

Companies, having regard to their size, resources, coverage and organization, in order to control

the heights of the economy and to meet progressively, and serve better, the needs of the

development of the economy, in conformity with national policy and objectives and for matters

connected therewith or incidental thereto.

Products & Services

Corporate Loan

Eligibility: High net worth corporate, partnership firms or proprietorship concerns having a good

track record of profits/dividend payment and market reputation. Minimum credit rating of 'A'.

Focus is on the financial strength of the Company and the asset cover available, with

flexibility with regard to end-use of funds.

Purpose: General corporate purposes. Could be to augment long term resources for working

capital management/ acquisition and/or refinance of fixed assets/prepayment of high cost loans

etc.

Discounting Future Cash Flows

Eligibility: High net worth corporate/non-corporate/landlords of repute with a minimum credit

rating of 'A'.

Purpose: To discount future cash flows including lease rentals. General corporate purposes - like

augmentation of long term resources for working capital management/ acquisition and/orrefinance of fixed assets/ prepayment of high cost loans/availing loan against identifiable assets

without joining consortium etc.

Foreign Currency Loan

(Against FCNR (B) Funds)


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Eligible borrowers: Export earning units and other customers with 'AAA' or 'AA' credit rating.

Customers with credit rating 'A', having natural hedge.

Purpose: Working Capital.

Demand Loan for purchase of new plant and machinery, acquisition of equipments and other

assets.

Quantum: Minimum US Dollars 100,000/-.

Lending only in US Dollars.

Dual Currency Swing Limit

Scheme: A credit facility with built-in option for the borrowers to switch between foreign

currency limits and rupee limits and vice-versa depending on prevailing environment.

Eligibility: Corporate borrowers with minimum credit rating 'A'.

Foreign Currency: Presently USD. The borrowers will have the flexibility for conversion from

USD to INR and vice-versa.

Tenure: The facility is available for a period not exceeding 1 year. Can be renewed, if required.

Commercial Paper

(A) CP Issue

Eligibility: Corporate with Minimum Tangible Net Worth of Rs.400 lakhs as per latest audited

Balance Sheet, having working capital limits sanctioned by banks/FIs.


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Credit Rating: Credit rating done by Credit Rating Agencies like CRISIL, ICRA, CARE,

FITCH with minimum credit rating of P2 of CRISIL or equivalent rating of

CARE/ICRA/FITCH.

Rating should be current and valid for the tenure of CP

Size of Issue: To be fixed by the Board of Directors of issuing Company or the quantum

indicated by the Credit Rating Agency for the specified rating, whichever is low.

Tenor: Minimum 15 days; Maximum 1 year from the date of issue

Denomination: Minimum Rs.5 lakhs or multiples thereof.

Charges/Fees: Commitment Charges of 1% in case of Working Capital

(B) Banks as Facilitator (IPA)

The Strength: With strong integrated Treasury, The bank is one of the pioneers in acting as

Issuing and Paying Agent (IPA) for issuance of CP.

Services offered: The Bank undertake all incidental services relating to issue of CP including

placement. The Bank also facilitates in obtaining Credit Rating from approved agencies and

issuing CP in de-mats form. The Bank is depository participant of both the depositories viz.

Central Depository Services (India) Ltd. (CDSL) and National Depository Services Ltd. (NSDL)

and has a chain of DPs located at the major commercial centres.


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Star Cash Management Services

Purpose: Speedy collection facility of local and upcountry cheques.

Eligibility: Customers having credit limits, with a Credit Rating of "A" and above.

Customers not having credit limits but maintaining satisfactorily conducted Current Account for

3 years or more.

Salient Features: With the advent of communication facility and computer net work, Star Cash

Management Services makes fund management easy by making available to the customer,

proceeds of cheque deposited at various centers within a predefined period in the fastest mode.

Funds can be made available at any of the operating Branches as per option given by the

customer.Even as collections are in transit, funds can be drawn upto agreed amounts.Availability

of MIS report over E-Mail on a daily / weekly/monthly basis enables better control of receivable.

The customers or their agents or their clients can deposit cheques at any of the Operating

Branches.

Charges: Nominal service charges and interest only for the period of actual credit availed.

Other Services

Interest Rate Swaps

For enabling corporate to hedge interest rate risk, the Bank offer interest rate swap in

which a fixed/floating interest stream can be exchanged with a floating/fixed interest stream.

Corporate Remote Access Fax Tele Banking (CRAFT) Facility

On Demand CRAFT facility enables the corporate to download account information at

their office itself/get the same through fax. They can get their account balances over Phone and

can register request for cheque book.


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Corporate Remote Access Terminal (CORAL) Facility

The Corporate can view their account information on-line from their offices without

visiting the Branch.

Printing of statement of accounts and requisition for issuing cheque books are now

rendered possible from the corporate office.

Aashiyana Housing Finance Schemes

Eligibility: Salaried employees, Professionals like Doctors, Lawyers, Engineers, Self-employed

persons and corporate.

Purpose: To purchase/ construct house/flat.

To renovate/ extend/repair existing house.

To take over housing loans extended by other banks/ institutions

Provides loans for buying plots, owning houses, as well as for renovation/repair and

extension, at highly flexible and liberal terms & conditions.

Maximum loan amount is Rs.50.00 lakh and repayment ranges up to 20 years, with a very

reasonable margin and processing charges. No prepayment/commitment charges. The loan is

available at very competitive rates of Interest, currently available in the Industry.

Mortgage Loan Scheme

Purposes:

a. To meet the credit needs of trade, commercial activity, other general business, and

professionals as also for their other bonafide purposes.

b. To meet marriage or medical or educational expenses of family members including near

relatives.

c. To undertake repairs/renovation/extension to the residence.

d. Purchase of consumer durables.


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BOI Star Suvidha Personal Loan

It provides Funds to meet all Personal requirements of you and your family.

Bank offers loans for marriage expenses, tours and excursions, purchase of all types of

consumer durables, purchase of cars etc.

The quantum of advance varies from Rs 50,000/- to Rs. 10 lakh, depending upon the

income, with a very attractive Interest rate and easy repayment plan.

Eligibility: Salaried employees, professionals and individuals with high networth.

Type of Loan: Demand Loan/Term Loan/Overdraft

A. Clean Loan

1. Marriage expenses of self, son, daughter or a dependent near relative.

2. Expenses related to Tours/Excursions of self, spouse, children within India or abroad.

3. Medical expenses incurred for self, spouse, children, dependent near relative.

4. Any other personal expenses of bonafide nature as approved by the Bank.

B. Secured Loan

1. Purchase of new/second hand car/two wheeler;

2. Repayment of existing Housing Loans from other banks/Financial Institutions etc.;

3. Repairs/Renovation/Extension of House property;

4. Education of self, spouse, children, near dependent relatives;

5. Purchase of consumer durables, computers, professional equipments, etc.


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Bullion Banking

A. Millennium Gold Coin

Bank of India, a pioneer in Bullion Banking business, have launched the millennium

Gold Coin. Gold coin of 10 gms. (999.9 purity) at a very reasonable price are available for sale

at the select branches. A perfect gift for the one you love.

B. Gold loan scheme

The Bank is one of the first to enter into Bullion Banking Business, after it was permitted

by Govt. in 1997 and have launched schemes like Consignment sale of Gold and Duty-free Gold

for exporters.

Other value-added products such as "Bullion Loan" and "Gold deposits" have also been

introduced at the select branches.

Kissan Credit Scheme:

A green card (Kisan Credit Card Scheme) has been introduced to help farmers to reap a

rich harvest. This card helps the farmer to raise short-term funds For Agriculture/Other farm-

based activities, on an on-going basis, with very flexible and friendly Repayment terms.

Bill Finance

Bank of India also offers Bill finance to its customers. The Bank collect bills on behalf of

customers. The Bank offer post-sale credit against bills.

BOI offers both Inward and Outward bills, which include:

1. Inland / Foreign Bills.

2. Demand Bills.3. Usance Bills.

4. Documentary Bills.

5. Document against payment bill.

6. Document against acceptance bill.


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Bank Guarantee

Bank of India, issues Bank Guarantees, on behalf of their customers, in favour of third

parties like Government Departments, Public- Sector Organizations, etc.

BoI issues both types of Guarantees viz. Performance Guarantee and Financial

Guarantee.

The type of Guarantee, track record of customers and their financial position are the

guiding factors in deciding the Guarantee limit, security and margin.

Export Finance

BOI is a pioneer in Export Finance. The Bank extends two types of Export Finance.

1. Pre-Shipment Finance.

2. Post-Shipment Finance.

1. Pre-Shipment Finance:

Packing Credit in Rupees.

Packing Credit in Foreign Currency.

Advances against incentives receivable from the Govt.

Advances against duty-drawback.

2. Post-Shipment Finance:

Purchase and discount of Export Documents under confirmed orders.

Negotiation / payment / acceptance of documents under L/C.

Advances against Export Bills sent for collection.

Export Bills rediscounted in Foreign Currency.


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Interest Rates on Advances

a. BOI Prime Lending Rate (PLR) 11.5%

b. BOI Prime Term Lending Rates (PTLR) 12.00%

*Rates are subject to revision from time to time as per directives of RBI/Bank.

**Corporate are rated as per internal credit rating system devised by the Bank taking into

consideration various relevant parameters.

Depository Services

Aim: Add Speed, accuracy and Transparency in the securities settlement mechanism and cut

transfer cost at the same time.

Purpose: Working Capital or demand loan for acquisition of business asset.

Salient Features: Materialization/ Dematerialization

Credit Cards

Bank of India's range of Card Products is an open line of credit and a useful source of cash,

anytime and anywhere.

Bank of India issues a range of card products.

i) INDIA CARD ( Master Card)

ii) INDIA CARD ( Visa Gold)

iii) BOI NAVY CLASSIC (Master Card)

iv) BOI NAVY GOLD (Master Card)

v) TAJ PREMIUM CARD (Master Card)

vi) ATM INDIA CARD


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Gold Card

Other Additional Benefits:

Bank of India offers a UNIQUE SECURITY PLAN in collaboration with the Oriental

Insurance Company Ltd., at a discounted premium exclusively for its CARD HOLDERS.

Mediclaim & accident insurance at Lower Premium for all Credit Card holders and their family

members.

Personal accident insurance covers upto Rs. 5.0 lakh.

Mediclaim cover upto Rs.6.0 lakh.

100% Income- tax benefit upto Rs.10, 000/- on Mediclaim insurance premium.

ATM / Swadhan Cards

Bank of India is one of the main participants in the Indian Bank's Association's Swadhan

ATM Network in Mumbai. Presently Swadhan cards are issued to valued customers of the

Mumbai Branches only. The ATM cardholders of Mumbai Branches can withdraw cash upto Rs.

5000/- per day from any of the 380 ATMs of Swadhan Network in India including 185 ATMs in

Mumbai.

Further, an interconnected ATM Network for three Branches at Hyderabad has already

been operationalised. This facility will be extended to all Branches within Hyderabad city, very

soon. Bank also proposes to provide inter-city connectivity of ATMs, beginning with

Hyderabad-Mumbai connectivity.

Deposit schemes

The Branches have facilities to open various types of Deposit accounts.

Savings Bank (Domestic, NRE, NRO)


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Current account.

Term Deposits

Double Benefit Deposit

Fixed Deposit Receipt

Short Deposit Receipt

Quarterly Income Certificate

Monthly Income Certificate

Recurring Deposit

BOI Star-92 (Flexible fixed deposit scheme)

Mamta Deposit Scheme (A long term recurring deposit scheme for your girl child)

Star Suvidha.

BOI Floating Rate Deposit Schemes

Objective: To optimize returns on high value deposits by permitting the depositor to have the

benefit of market-related interest rates

Minimum amount of deposit Rs.1 crore and thereafter-in multiples of Rs.10, 000/=

Period of deposit one year (fixed)

Interest rate on deposit 0.25% more than the yield rate on 91 days treasury bill

Re-pricing dates: Interest will be re-set effective first day of every calendar quarter i.e. 1st of

January, April, July and October


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Star Cash Management

A cash management product specifically for Corporate Customers, which offers fast track

cheque collections, speedier release of funds and profitable funds management, at a reasonable

cost.

Safe Deposit Vault/Safe Custody Services

BOI also offers safe deposit Lockers and safe custody services to its customers through its large

number of branches, at a very reasonable charge.

BOI Medi Mobile Schemes

Specifically for medical practitioners / dentists for purchase of vehicle of their choice up to amaximum limit of Rs.5.00 lakh.

Technology Products / Services

1. Telebanking & Fax on Demand:

BOI offers Telebanking and Fax on demand facilities to its customers, for enquiring the

balances in their accounts, making requisition for cheque books and having Statements of

account on fax. This facility is currently available at 188 of the Fully Computerised Branches,free of cost to the customers.

2. Corporate Remote Access Terminal:

BOI offers Banking facility to its Corporate Clientele from the comforts of their offices/house on

their PCs. The facilities offered are query on balances in their accounts, requisition for

chequebooks, Statements of account etc. All these facilities are offered at a very reasonable cost.

3. S.W.I.F.T

BOI also facilitates services to its customers through S.W.I.F.T (Society for World-wide Inter

Bank Financial Telecommunications), thereby providing cost-effective financial processing and

communication services of assured quality, integrity, reliability for International fund transfer


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and other financial transactions. There are currently 75 branches / offices of the Bank on

S.W.I.F.T network, (domestic and foreign centres)

4. ATM

BOI offers its customers round-the-clock banking services through its network of 48 ATMs

throughout the country.

5. Electronic Clearing Service (Debit & Credit)

BOI offers its customers, faster and easier method of effecting repetitive payments by direct

debit to the customers' account in case of utility payments, credit card bills etc.

Similarly, ECS is also a preferred method of credit in respect of dividend warrants, interest

warrants, refund orders, salary, pension etc.

6. Electronic Funds Transfer

BOI offers its customers an easy mode of Inter Bank, Inter-city transfer of domestic funds

between metros and select major cities within 24-hours, at a very nominal service charge.

Bank of India Launches the Online ATM Card

Bank of India has launched an online ATM Card. This card is a convenient way to carry

out your banking transactions round the clock - at any hour of the day or night, all seven days of

the week. Regardless whether the bank is open or not! And regardless whether you are in the

same city as your branch or not! The Bank of India ATM Card would allow you access to your

account from any of the ATMs of Bank of India as well as the ATMs of other banks through the

SWADHAN network

The Bank of India ATM Card currently comes to you absolutely free when you open a

Savings Bank/Current Deposit/Overdraft account in their single names; or those, which they

operate under their single signatures. However, cards will not be issued to minors, corporate

bodies, firms and legal entities. You can link your SB, CD, and OD accounts to your Bank of

India ATM Card and withdraw cash.


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Deposit Schemes For Senior Citizens

Senior Citizens:

One who has completed 60 Years of age.

The first deposit holder should necessarily be Senior Citizen.

The joint account holder may be Spouse. Spouse need not be senior citizen.

Interest Rate on Deposits:

0.5% higher than the applicable rate for the period of ONE-YEAR AND ABOVE.

Nomination Facility:

The depositors can nominate any relative to receive the balance outstanding in his credit.

On production of the proof of death of the depositor, by the relative so nominated. In terms of

RBIs monetary and credit policy for 2011-12 announced on April 29, 2012, banks have been

advised to provide information on effective annualised rate of return on deposits of various

maturities. Accordingly, the effective annualised rate of return on Banks cumulative deposit

schemes under the Reinvestment Plan on quarterly compounding basis.

Non-Resident Indians

Non Resident Indians (NRI s) have a choice of two schemes for depositing their savings with

Bank of India. These are:

Foreign Currency Non Resident (FCNR) accounts

Non-Resident External (NRE) accounts, and,

The brief comparative features of the two schemes are:

Particulars: FCNR and NRE


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Who can open accounts NRI s, OCB s

Joint accounts of two or more NRI s Permitted

Joint account with Residents Not permitted

Nomination facility available

Currency of account USD, GBP, EUR, JPY Indian Rupees

Reparability: Principal and interest reparable .

Type of account Term deposits "Savings, Current and Term deposits

Period 12 months to 3 years 6 months to 7 years

Minimum amount:

USD 1,500-

GBP 1,000-

EUR 1,500-

JPY 50,000- -

Taxation (Indian taxes) Exempt from income and wealth tax Exempt from income and wealth

tax.

Liquidity Easy pre-mature encashment facility.

Automatic renewal facility (ARS) Available on signing of ARS agreement

Safe custody facility Available on request;

Compulsory with ARS Available on request.

Renewals Deposit receipt to be submitted duly discharged within 14 days from date of maturity

for retrospective renewal alternatively renewal will be with simple interest from maturity date


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to renewal date Deposit receipt to be submitted duly discharged within 14 days from date of

maturity for retrospective renewal alternatively renewal will be with simple interest from

maturity date to renewal date Rules governing Non-Resident deposits are guided by regulations

of Reserve Bank of India and rules formulated by the Bank from time to time. These are subject

to change without notice.

New Products Launched

Deposit Products

BOI Current Deposit Plus Account: A value- added product launched by the Bank for

providing operational flexibility with optimisation of earnings on the short-term surplus

funds of high-value current account customers.

Multi-city Cheque Facility: The instrument launched by the Bank is payable at par at

Branches of the Bank at its Multi Branch Banking (MBB) Centres and is available to

high-value current deposit account customers.

ATM cum Debit Card: The Bank has launched Visa Electron Debit Card, which is a

ATM cum Debit Card.

Credit Products

Line of Credit: For Corporate and Export credit sector envisaging identification of the

prospective clients and In-principle sanction of line of credit.

BOI Star Mortgage Loan: A retail product against mortgage of property.

Star SSI Supreme: Short-term finance to "AAA" and "AA" rated SSI borrowers with

good track record at attractive rates.


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Technology Savvy initiatives

The Bank has a comprehensive technology up gradation plan and is continuously

implementing new IT initiatives to be a technology savvy modern global Bank. Major IT

initiatives implemented in FY 13 / being introduced are as under: -

2155 Computerised Branches capturing 91% of Domestic business. Remaining 380

infrastructurally suitable Branches will be computerised in FY 13.

275 networked Branches in 9 cities providing Multi Branch Banking, which is being

extended to another 450 Branches at 21 centres.

121 on-line ATMs of the Bank are in operation and with about 900 "Swadhan" ATMs,

the number of on-line ATMs are over 1000. The Bank's own on-line ATMs are being

increased to 325 by the year-end. Sharing of ATM network with 4 other Banks is also

finalized.

Internet banking available at 8 NRI Branches being extended to all the networked

branches.

SMS banking introduced at Hyderabad and Secunderabad being extended to all the

networked branches.

Mobile ATM introduced at Mumbai. More Mobile ATMs to be introduced.

Kiosks with Passbook printing facility have been installed at select Branches in Mumbai.

About 25 more Kiosks will be introduced.

Creation of a central hub at Singapore for all Foreign centers introducing common

standard software.

An integrated communication corporate backbone networked system for the Bank is

being created.

Implementation of a core banking solution is in the offing.


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Business process outsourcing in non-core areas like Human Resources.

The Bank's Head Office shifted to its own state-of-the-Art Building "Star House" at

Bandra-Kurla Complex, Mumbai. The formal inauguration is on 1st May 2013 by Hon'ble Dr.

Bimal Jalan, former Governor, Reserve Bank of India.

Introduction to Credit

Credit in its literal sense means trust or confidence. Actually it means the postponement

of payment.

Credit is an act of exchanging in which the creditor delivers certain goods, money or

services in the present and believes sometime in the future.

The word Credit has been derived from the Latin Credo meaning, I believe. This

also shows that credit has no existence without belief, faith or confidence.

Definitions of Credit:

In the words of Prof. Gide, It (credit) is an exchange which is complete after the expiry

of a certain period of time after payment.

In the words of Prof. Cole, Credit is purchasing power not derived from income but

created by financial institutions either as an offset to idle incomes held by depositors in the

banks or a net addition to the total amount of purchasing power.

Basis of Credit: Credit involves three essentials. They are

1. Exchange or transfer of value

2. Time

3. Confidence Confidence both in the integrity and capacity of the borrower


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Characteristics of Credit:

1. Confidence

2. Character

3. Capacity

4. Debtors capital and property

5. Amount of the debt

6. Period of credit

Kinds of Credit:

Credit may be classified into two broad categories:

Public Credit: Public credit includes all loans and advances which are extended to government,

municipalities and other local bodies. Bonds, notes, certificates and similar government

securities usually represent such credits.

Private Credit: Private credit includes all advances of credit to individuals, partnership firms

and joint stock companies. Trade bills, hundis, promissory notes, shares, debentures, etc

represent such credits. For modern business, private credit is very essential.

Forms of Credit:

1. Cash Credit: Cash Credit is a kind of running account opened by the bank for a

borrower. The borrower can draw the amounts as and when he needs. Interest is

charged on the amount actually drawn. Banks also supply short-term finances. Under

short-term financial arrangement, a firm can get credit instruments like bills of exchange;

promissory note or hundies discounted at a price lower than the face value and thus

obtain an unsecured loan from the bank. Generally, bank gives credit accommodation on

pledge, hypothecation or collateral security.


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2. Investment Credit: This credit is granted for investment purpose. Generally

long-term capital is required for investment purpose. When credit is extended for a

period of more than five years, it is known as long-term credit. Extension of buildings

and plants are generally financed with the help of long-term credits and loans.

3. Commercial Credit: Short-term credit (or) Credit instruments, which, are

primarily used for commercial purposes are known a commercial credit instruments.

Bank drafts, bills of exchange and promissory notes are the examples of commercial

credit. This loan is granted for period of less than a year. It is known as short-term

credit. This type of credit is generally related to the current operation of a business, ex:

purchase of raw materials, payment of wages etc.

4. Consumers Credit: retailers for selling consumer durables like Television sets,

Refrigerators, Furniture, Electric fans, Washing machines etc, generally use it.

Role of Credit in modern business

Finance is the life-blood of modern commerce. It facilitates trade and provides

necessary lubrication to its mechanism. Provision of funds is essential for every type of

domestic trade. In the modern money-using economy, finance may be defined as the provision

of money at the time it is wanted. Success of a business today depends upon the credit and

borrowing abilities of a businessman. In the words of Macleod, What the steam engine is in

mechanism; What the differential Calculus is in Mathematics; that is credit in Commerce.

Economic Significance of Credit

In days of self-sufficiency there was no question of credit. Its need arose only when

people adopted division of labour and large-scale production. It has now become international

in character and forms the foundation of the modern economy. Some of the services of credit

rendered to the economic system are:

1. It provides a convenient and economical means of exchange by supplementing other

forms of money.


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2. It facilitates production and exchange.

3. It increases consumption and raises standard of living.

4. It encourages capital formation.

5. It facilitates development of large-scale enterprises and industry.

6. It makes possible the optimum utilization of capital.

7. It exchange of commodities and services are possible without making payment in

cash

8. Influence on output and employment.

9. Proper utilization of National resources.

10. Credit transactions are easier.

Dangers of Credit

1. Leads to inflation.

2. Conceals financial weakness.

3. Leads to monopoly.

4. Competition and exploitation.

5. It encourages wastefulness on the part of individuals, commercial concerns and

government.

RBI Credit Control

Quantitative Controls:


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To prevent hoarding and speculative dealings in essential commodities, the Reserve Bank of

India has been making use of this method of margin requirements especially in case of advance

against food grains, oil-seeds, sugar, etc.

2) Consumer Credit Control:

Another method of selective credit control is to regulate the credit granted to the

consumers to enable them to buy certain durables commodities. The durable commodities like

cars, refrigerators, televisions sets, air-conditioning etc., are costly and an average consumer is

not in a position to purchase them by paying a lumpsum amount. Therefore, the consumers

arrange to purchase these commodities through bank credit repayable in Installments.

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