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A Project Report
On
THE ROLE OF INSURANCE AT INDIAN OVERSEAS BANK
In Partial fulfilment of Requirement for B.B.A.
(Guru Nanak Dev University, Amritsar)
Submitted to:DR. ALOK SAKLANI
(DIRECTOR)
Submitted by:DIVYA KATYAL
BBA-IIIRoll No.0310
APEEJAY INSTITUTE OF MANAGEMENT & ITDWARKA, NEW DELHI
INTRODUCTION
Indian Overseas Bank as a market savvy public sector bank is
always proactive to the customers needs by offering customer
centric products and services with the objective of total banking
solutions for every need of the customer. The IOB was nationalized
on July, 1969. It was the 14 the Bank to be nationalized. Our bank
as a financial services provider is always committed to student
welfare and would be happy to see that even in adverse situations,
like accident/disability of student death/accident/disability of
parent, student’s education should get completed uninterrupted.
Indian Overseas Bank has grown with a number of branches in
India and abroad. It has branches spread in most of the states in
India. The Bank’s operations range from an array of deposits
schemes, and advances. It has a wide network of Branches in
Urban, Semi-Urban, rural areas. The Bank Caters to specific needs
like foreign trade, Merchant Banking, Agriculture etc. through
specialised branches lie, Industrial Finance Branches, SSI branches.
The bank also has NRI branches to cater to the needs of the NRI’ s.
The insurance covers of parent will enable the student to have
unhindered education, in case of any adverse eventualities,
happening to the parent. The life cover with accident benefit and
health cover will help the student directly, for any health problems,
like hospitalisation expenses due to disease/accident. Since the
insurance covers are being arranged by us, on the basis of our
negotiation already arrived with insurance companies, the premia
is comparatively very low. The scheme is administered under tie
1
up with the college and covers all the students admitted to the
college and also the existing students.
In keeping with our tradition of meeting customers needs and
aspirations through innovative products, we have designed yet
another value added scheme to provide life cover to all SB/CD
account holders. The scheme is a pure term assurance cover
offered by IOB with LIC of India under their Group Insurance
Scheme. All individual SB/CD account holders of our bank aged
between 18-55 years are eligible to join the scheme of paying an
annual premium.
The Indian insurance market is experiencing cosmic changes.
Industrial outputs have been taking quite long to create multiple
distribution channels for deeper penetration into the market. Till
now, in India, agents have dominated the insurance market and
the role of the brokers was limited to the reinsurance business.
The project aims to study the various distribution channels, the
existing ones and the new areas available to a life insurance
company considering their salient features, business potentials and
reach in the market.
In the second part of the project , new sectors have been explored
which can be used by the life insurance company for Corporate
Agency tie – ups through which the untapped market segments
can be targeted.
OBJECTIVES
2
In its entirety, a project study may well be equated to a mission. As
an analogue, project objectives could be put at par with a mission
statement. Correctly set objectives set the prelude for a
meaningful study. With this view, the following objectives were set
for the research: -
To study the nature and flow of processes in a insurance firm in
the Indian Overseas Bank.
To trace the path of an application form, from conception until
the services are delivered to the customer.
To Study The Funds, Accounts and Audit in Indian Overseas
Bank.
3
RESEARCH METHODOLOGY
The manner in which a study is conducted is the basic plan that
guides the project. With respect to this, the building blocks of the
research may be explained as under.
DATA COLLECTION APPROACH
The plank on which the study rests is information, which has been
procured as a judicious mix of both secondary data and primary
sources of data.
Secondary Data
Already published data formed the launch pad for the study. This
includes: -
Brochures, pamphlets
Official reports, specially the Annual report(s)
Case studies
Periodicals (magazines, journals)
The World Wide Web for Information ‘or’ the Internet
Primary Data
Data collected specifically for the research need at hand. This
includes:-
Interviews and surveys of people with informed ideas about the
subject of the project.
Observation: recognizing and recording relevant events and
activities.
INSURANCE INDUSTRY
4
IOB JEEVAN
Add on facility to all customers of our bank
In keeping with our tradition of meeting customers needs and
aspirations through innovative products, we have designed yet
another value add scheme to provide life cover of all SB/CD
account holders.
The scheme is a pure term assurance cover offered by IOB with LIC
of India under their Group insurance shceme. All individual SB/CD
account holders of our bank aged between 18-55 years are eligible
to join the scheme by paying an annual premium.
Salient features of the gorup insurance scheme “IOB-
JEEVAN”
Eligibility
This is a scheme available to all individual SB/CD account holders
of the Bank aged between 18-55 years. The cover ceases on
attaining 55 years of age.
Benefits
Optees under the scheme are eligible for a life insurance cover of
Rs. 1 lakh.
Premium payable
Premium payable depends on age which includes nominal
administration charges.
The premium will be debited from the account holders SB or CD
account and remitted to LIC by the Bank.
5
Age Premium p.a.
18-45 Rs. 213/-
36-45 Rs. 321/-
46-55 Rs. 753/-
Medical Examination
There is no need for any medical examination. A simple
declaration of Good Health will suffice. The bank will act as a
Master Policy holder for and on behalf of the members in all
matters relating to this scheme.
Origin of Life Insurance
Almost 4,500 years ago, in the ancient land of Babylonia, traders
used to bear risk of the caravan trade by giving loans that had to
be later repaid with interest when the goods arrived safely. In 2100
BC, the Code of Hammurabi granted legal status to the practice.
That, perhaps, was how insurance made its beginning.
Life insurance had its origins in ancient Rome, where citizens
formed burial clubs that would meet the funeral expenses of its
members as well as help survivors by making some payments.
As European civilization progressed, its social institutions and
welfare practices also got more and more refined. With the
discovery of new lands, sea routes and the consequent growth in
trade, Medieval guilds took it upon themselves to protect their
member traders from loss on account of fire, shipwrecks and the
like.
6
Since most of the trade took place by sea, there was also the fear
of pirates. So these guilds even offered ransom for members held
captive by pirates. Burial expenses and support in times of
sickness and poverty were other services offered. Essentially, all
these revolved around the concept of insurance or risk coverage.
That's how old these concepts are, really.
In 1347, in Genoa, European maritime nations entered into the
earliest known insurance contract and decided to accept marine
insurance as a practice.
The Structure Of The Insurance Market In India
The LIC for life assurance business & GIC and its subsidiaries for
general insurance business are the main providers of insurance in
India. As for the life insurance, the Postal Life Insurance Scheme
provides for life insurance coverage to government & public sector
employees & also the general public in rural areas. Various state
governments have life & general insurance funds established to
provide life insurance cover to their own employees as also general
insurance cover for their departments / corporations.
Nature Of Insurance Business
An insurer sells promise of future payment of insurance policy
benefits in return for the premiums received now. The happening
of the event insured against is uncertain - it may or may not
happen & if it does happen, the timing of its happening cannot be
predicted in advance. The promise is good & hence the policy is
worth something only to the extent that the insurer will be able to
pay when the time comes to pay the claim. There is considerable
7
time gap between the payments of the premium & the settlement
of the claim. It is therefore the continued financial ability of the
insurer to fu1fill its side of the bargain that generates the-value of
insurance,
In the view of large funds that necessarily get accumulated in the
natural course of insurance business, the need for regulation
gained support from the policy holders as well as practitioners of
insurance. Regulation of insurance is regarded as an essential
requirement for the sound development of the insurance activities
& the insurance activities properly regulated, play an important
role in the process of national economic development.
Insurance Regulatory Development Authority (IRDA)
The opening up of the sector has been long standing and with the
passing of the Insurance Regulatory and Development Authority –
IRDA bill a significant step has been taken.
IRDA is formed as an authority to protest the interests of holders of
insurance policies, to regulate promote, and ensure orderly growth
of insurance industry and for matters connected therewith or
incidental thereto.
With the Insurance Regulatory and Development Act, the focus
shifted to the following:
The insurance Regulatory and Development Authority (IRDA)
should give priority to health insurance while issuing certificates
of registration:
8
Policyholder’s funds will be invested in the social sector and
infrastructure. The percentage may be specified by the IRDA
and such regulations will apply to all insurers in the country.
Insurers will be expected to undertake a certain percentage of
business in the rural or social sector and provide policies to
persons residing in rural areas, workers in the unorganized and
informal economically basic:
In case of the insurers fail to meet the social sector obligation a
fine of Rs 2.5 million would be imposed the first time. Subsequent
failures would result in cancellation of licenses.
BENEFITS OF LIFE INSURANCE:
1. SUPERIOR TO ANY OTHER SAVINGS PLAN
Unlike any other savings plan, a life insurance policy gives full
protection against the risk of death. In the event of death of the
policyholder, the insurance company makes available the full sum
assured to the policyholder's nominees. In comparison, payment in
any other savings plan would amount to the total savings
accumulated till date. If the death occurs premature, such savings
can be much less than the sum assured. Evidently, the potential
financial loss to the family of the policyholder would be sizable.
2. ENCOURAGES & FORCES THRIFT
A savings deposit can easily be withdrawn. The payment of life
insurance premiums, however, is considered sacrosanct & is
viewed with the same seriousness as the payment of interest on a
mortgage. Thus, a life insurance policy in effect brings about
compulsory savings.
9
3. EASY SETTLEMENT & PROTECTION AGAINST CREDITORS
A life insurance policy is the only financial instrument, the
proceeds of which can be protected against the claims of a creditor
of the assured by effecting a valid assignment of the policy.
4. ACCIDENTAL DEATH BENEFITS
Many policies can also provide for an extra sum to be paid
(typically equal to the sum assured), if death occurs as a result of
accident.
5. ADMINISTERING THE LEGACY FOR BENEFICIARIES
Speculative & unwise expenses can quickly cause the proceeds to
be squandered. Several policies have foreseen this possibility and
provide for payments over a period of years or in a combination of
installments & lump sum amounts.
6. READY MARKETABILITY AND SUITABILITY FOR QUICK
BORROWING
A life insurance policy can, after a certain time period (generally 3
yrs.), be surrendered for a cash value. The policy is also acceptable
as a security for a commercial-loan, for example, a student loan. It
is particularly advisable for housing loans when an acceptable LIC
policy may also cause the lending institution to give loan at lower
rates.
7. DISABILITY BENEFITS
Death is not the only hazard that is insured; many policies also
include disability benefits. Typically, these provides for waiver of
10
future premium & payment of monthly installments spread over a
period of time.
8. TAX RELIEF
Under the Indian Income Tax Act, the following tax relieves are
available in relation to a life insurance policy:
The premiums paid under the plans qualify for rebate under
section 88.
The returns qualify for full tax exemption under section
10(10 D).
When these benefits are factored in, it is found that most policies
offer returns that are comparable or even better than other
modes of saving such as PPF , NSC etc. Moreover, the cost of
insurance is very negligible.
TYPES OF LIFE INSURANCE
Term insurance policy
Whole life policy
Endowment policy
Money back policy
Annuities and pension
Most of the products offered by Indian life insurers are developed
and structured around these "basic" policies and are usually an
extension or a combination of these policies. So, what are these
policies and how do they differ from each Other?
11
TERM INSURANCE POLICY
A term insurance policy is a pure risk cover for a specified period of
time. What this means is that the sum assured is payable only if
the policyholder dies within the policy term. For instance, if a
person buys Rs 2 lakh policy for 15-years, his family is entitled to
the money if he dies within that IS-year period.
What if he survives the 15-year period? Well, then he is not entitled
to any payment; the insurance company keeps the entire premium
paid during the 15-year period. So, there is no element of savings
or investment in such a policy. It is a 100 per cent risk cover. It
simply means that a person pays a certain premium to protect his
family against his sudden death. He forfeits the amount if he
outlives the period of the policy. This explains' why the Term
Insurance Policy comes at the lowest cost.
WHOLE LIFE POLICY
As the name suggests, a Whole Life Policy is an insurance cover
against death, irrespective of when it happens. Under this plan,
the policyholder pays regular premiums until his death, following
which the money is handed over to his family.
This policy, however, fails to address the additional needs of the
insured during his post retirement years. It doesn't take into
account a person's increasing needs either. While the insured buys
the policy at a young age, his requirements increase over time. By
the time he dies, the value of the sum assured is too low to meet
his family's needs. As a result of these drawbacks, insurance firms
now offer either a modified Whole Life Policy or combine.
12
ENDOWMENT POLICIES
Combining risk cover with financial savings, endowment policies
are the most popular policies in the world of life insurance.
In an Endowment Policy, the sum assured is payable even if the
insured survives the policy term If the insured dies during the
tenure of the policy, the insurance firm has to pay the sum assured
just as any other pure risk cover.
A pure endowment policy is also a form of financial saving,
whereby if the person covered remains alive beyond the tenure of
the policy; he gets back the sum assured with some other
investment benefits. In addition to the basic policy, insurers offer
various benefits such as double endowment and marriage/
education endowment plans. The cost of such a policy is slightly
higher but worth its value.
MONEY BACK POLICIES
These policies are structured to provide sums required as
anticipated expenses (marriage, education, etc) over a stipulated
period of time. With inflation becoming a big issue, companies
have realized that sometimes the money value of the policy is
eroded. That is why with-profit policies are also being introduced to
offset some of the losses incurred on account of inflation.
A portion of the sum assured is payable at regular intervals. On
survival the remainder of the sum assured is payable. In case of
death, the full sum assured is payable to the insured.
13
ANNUITIES AND PENSION
The premium is in an annuity, the insurer agrees to pay the
insured a stipulated sum of money periodically. The purpose of an
annuity is to protect against risk as well as provide money in the
form of pension at regular intervals.
Over the years, insurers have added various features to basic
insurance policies in order to address specific needs of a cross
section of people.
14
COMPANY PROFILE
INDIAN OVERSEAS BANK
Chidambaram Chettyar and a group of persons wanted to invest
their surplus money in something that will being them profits. So
they decided to start a bank with their surplus money. 6the bank
was incorporated in 1932. Since it had many branches abroad, it
was given the name Indian Overseas Bank. Its main function was
giving loans.
Since its inception, the Indian Overseas Bank has grown with a
number of branches in India and abroad. It has branches spread in
most of the states in India. The Bank’s operations range from an
array of deposits schemes, and advances. It has a wide network of
Branches in Urban, Semi-Urban, rural areas. The Bank Caters to
specific needs like foreign trade, Merchant Banking, Agriculture
etc. through specialised branches lie, Industrial Finance Branches,
SSI branches. The bank also has NRI branches to cater to the
needs of the NRI’ s.
Bank +started a specific loan schemes to promote higher
education, encourage woman entrepreneurship, liquid securities
and popular consumers.
The Bank has been defined differently by different Authors. Some
of the definitions and meaning of Bank/Banking are given
hereunder. Banker is a person or company carrying on the
business of receiving money and collecting draft for customer
subject to obligation of honoring cheques drawn upon them from
15
time to time by customers to the amount available on their current
accounts. Banking is accepting for the purpose of lending or
investment, deposits of money from the public ‘repayable on
demand or otherwise withdrawable by cheques, drafts order or
otherwise. The Corporate strategy in the light of its mission,
philosophy, structure, system, staff, managerial styles, skills and
sense of super-ordination and environmental conditions, National
and International, prevailing at the movement. The other details
explained in the chapters here-to-after will throw light on the
manner, method and ways in which it has taken place and the
results achieved by the Bank.
Retail banking is not without its disadvantages. Large number of
small accounts add additional burden on the follow up. While
expressing these views, A L Chandramouli (General Manager,
Indian Overseas Bank) also provides brief details of retail schemes
of Indian Overseas Bank like easy deposits, re-investment deposits
and gift cheques. He also notes that his bank is the pioneer in
promoting personal loan scheme, which is a loan to individuals for
acquisition of consumer durables.
GENESIS OF IOB
Indian Overseas Bank (IOB) was founded on February 10th 1937, by
Shri.M.Ct.M. Chidambaram Chettyar, a pioneer in many fields-
banking, Insurance and Industry with the twin objectives of
specializing in foreign exchange business and overseas banking.
It had the unique distinction of commencing business on 10th
February 1937 (on the inaugural day itself) in three branches
16
simultaneously-at Karaikudi and chennai in India and Rangoon in
Burma (presently Myanmar) followed by a branch in Penang.
IOB started serving Independent India with 38 branches in India
and 7 branches abroad in 1947. Deposits stood at Rs. 6.64 Crs and
Advances at Rs.3.23 Crs at that time.
Pre-nationalization era (194-69)
During the period , IOB expanded its domestic activities and
enlarged its international banking operations.
As early as in 1957, the Bank established a training center
which has now grown into a Staff college at Chennai and with 9
training centers all over the country.
7IOB is the first Bank to venture into customer credit. It
introduced the popular Personal Loan scheme during this
period.
In 1964, the Bank made a beginning in computerization in the
areas of inter-branch reconciliation and provident fund
accounts.
At the time of Nationalisation (1969)
IOB was one of the 14 major banks that were nationalised in
1969.
On the eve of Nationalisation in 1969, IOB had 195 branches in
India with aggregate deposits of Rs. 67.70 Crs. And Advances of
Rs. 44.90 Crs.
17
Post- nationalisation era (1969-92)
In 1968, IOB established a full-fledged department to cater
exclusively to the needs of the Agriculture sector.
In 1973, IOB had to wind up its five Malaysian branches as the
Banking law in Malaysia prohibited operation of foreign
Government owned banks. This led to creation of United Asian
Bank Berhad in which IOB had 16.67% of the paid up capital.
In the same year Bharat Overseas Bank Ltd was created in India
with 30% equity participation form IOB to take over IOB’s
branch at Bangkok in Thailand.
In 1977, IOB opened its branch in Seoul and the Bank opened a
Foreign Currency Banking Unit in the free trade zone in
Colombo.
Regional Rural Banks- towards reaching mass
The Bank has sponsored 3 Regional Rural Banks Viz. Puri
Gramya Bank, Pandyam Grama Bank, Dhenkanal Gramya Bank
The Bank has setup a separate computer policy and planing
department (CPPD) to implement the programme of
computerisation, to develop software packages on its own and
to impart training to staff members in this field.
18
POST REFORM PERIOD – UNPRECEDENTED DEVELOPMENT
(1992 & AFTER)
Computerization – towards customer delight: 270 branches
have been totally computerised and 350 branches have been
partially computerised as of December 1999. Automated Teller
Machines (ATM) 17 in –operation and 14 more planned for the
current year.
IOB entered Web site during the month of February 1997
The bank released “Citizen Charter” on the Founders Day (1.e)
20th November 97
IOB is the first bank to enter gold trade.
IOB got autonomous status during 1997-98
Seed bank scheme was launched in coordination with Dr.
M.S.Swaminathan Research foundation on 6th February 98
IOB stated STAR services in December 1999 for speedy
realization of outstation checks. Now the Banks has 14 STARS
centers and one Controlling Center for providing this service.
IOB has launched Any Branch Banking services in Chennai, Delhi
and Mumbai during 1999.
IOB had the distinction of being the first Bank in banking
industry to obtain ISO 9001 Certification for its computer policy
and planing department from Det Norske Veritas (DNV),
Netherlands in September 1999. This Certifications cover
Design, Development, Implementation. and Maintenance of
19
software developed in-house, procurement and supply of
hardwired and execution of turnkey projects
During 1999, IOB started tapping the potential of internet by
enabling ABB card holders in Delhi to pay their telephone bills
by just logging on to MTNL web site and by authorizing the Bank
to debit towards the telephone bills.
IOB launched a novel scheme called “AAROGYA” under tie-up
arrangement with Apollo Hospita, Chennai which facilitate free
medial check up in this hospital
As of March 2000, IOB had 1419 branches in India and 6
branches in overseas. The bank’s global deposits stood at Rs.
24,318 Crore and global gross advances stood at Rs. 11,573
crore. The bank’s domestic deposits stood at Rs. 23,613 Crore
and domestic gross advances stood at Rs. 10,170 Crore.
Fourth ABB center was put in Calcutta on May 18, 2000.
Simultaneously on the same day, inter-city connectivity was
provided among the four metores-Calcutta, Chennai, Delhi And
Mumbai
Consequently the customers o any one of 129 branches in the
four metros can bank with any of these 129 branches with their
ABB cards
Internet Banking scheduled to take off in August 2000
IOBNET connects Central Office with all Regional Office
20
IOB’S MAIN FEATURES
Credit card scheme
The bank took a policy decision to market only Canara Visa in view
to idea acceptability and marketability. The card was redesigned to
give market visibility to the Bank.
Computerisation
The bank has setup its own network employing the latest available
technology. Tele-banking facility is also introduced. The Bank
Opened Regional Computer Centers (Rccs) in 20 regional offices
and with this all the regional offices have been provided with RCC
set up.
Customer service
Customer Service continued to be the thrust area for the bank.
Prompt redressal of grievances was given top priority. The Booklet
Contain information about various schemes and services offered by
the bank for the benefit of customer.
Sakthi Job Chidambaram Chettyar Memorial Trust
This trust was launched by the bank and its staff through their
respective organization in memory of Founder of the Bank. The
courses include tailoring, computer application, screen-printing and
stenography. The training progammes are conducted in
coordination with Voluntary organizations.
21
ABC services
The Agri Business Consultancy Services the specialized outfit of the
bank offering consultancy to corporate, government Companies &
entrepreneurs. The bank is association with M.S. Swaminathan
Research Foundation launched, and innovative Wasteland
development Project for small and marginal farmers. The project
aimed at production of quality pulses seeds in dry parts of Tamil
Nadua by using rain water harvesting technology.
22
INSURANCE INDUSTRY ANALYSIS
MARKET SHARE IN FY-2002-2003
6%
94%
Private Players
LIC
This graph represents the market share, in terms of premium, of
LIC against the private players for the financial year of 2003-04.
This is only the third year for the private players after their
induction in 2000 and for many in 2001. This is quite a god
showing because the presence of the private players in the rural
sector is quite negligible and the faith of the middle and lower
class on private sector is not comparable to LIC, which enjoys their
faith being state insurer. But this is a god start and warning is their
for the LIC.
23
MARKET SHARE IN FY 2004-2005
This year showed a much improved performance for the IOB. Their
market share of the premium grown from 6% to 22%. Though they
still unable to gain a foothold in the rural areas, they’d shown
marked improvement in terms penetration in the cities specially
metros where the share of LIC is continuously on a steep decline.
The major factors pushing for them are better accessibility, better
image makeover through media etc. The returns on the investment
are also improved due to good showing of the stock market. The
private players has shown promising future ahead of them, and
with the presence of all the major financial institutions as well as
the many of the big corporate players their share is surely going to
improve in the coming years.
22%
78%
IOB
LIC
24
MARKET SHARE COMPARISON
This graph clearly demonstrates the present trend in the insurance
sector in India. And with the proposal of increasing the limit of FDI
the battle is going to intensify. And with private players showing
only one way to go, up. This is quite a healthy trend because the
competition will ensure better product and their quality for the
investors.
IOB LIC0
10
20
30
40
50
60
70
80
90
100
Market share at % of premium 2003-2004
Market share at % of premium 2004-05
25
MARKET SHARE COMPARISON ON AMONG IOB
This graph illustrates the division of the percentage premium
among the major private players in the life insurance sector. The
biggest among them is ICICI followed by Birla and others. The
share of IOB is about 4% and is growing at the rate of more than
100% per year. The trends which we have seen earlier is
continuing here as well, as all the private players showing growth
in their annual premium.
ICIC
I Pru
dentia
l
Birla
Sunlife
HDFC Sta
ndard
SBI Life
TATA AG
Allian
z Baj
aj
Max
New
York
Om
Kota
kIO
B
ING
Vys
ya
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5Market share as % of premium 2003-04
Market share as % of premium 2004-05
26
27
28
NEW AREAS TO BE EXPLORED
Presently lot of work is being done to form tie ups with people in
different sectors so that they on the basis of their present
customer base can help us tap into the -new and the untapped
market segments. For this working out the tie-ups are being done
in the following segments of the market.
APPOINMENT OF CORPORATE AGENCY
During the in - house training we explored the following sectors to
assess their potential as a Corporate Agency for the distribution life
insurance:
Companies engaged in financial services: -
1. Finance, investment and leasing companies
Investment/financial
2. Consultants
3. Charted Accountants/Company secretaries
Share Brokers
Event Management Companies
Builders and Developers
Non Governmental Organizations
Associations and affiliation groups
29
LIMITATIONS
No project can be without any limitations. This project also has a
few limitations which are:
It was required to go to the Head Office to get the data in
details which could not be done due to time constraint.
However, information was collected from Regional/Zonal offices.
The findings are based on available information / data collected
from banks and other sources such as annual general reports
and the data is not exhaustive by any means.
Not suffice information was provided by Indian Overseas Bank.
Performance Highlights of IOB could not be obtained.
Pay scales of the Managerial staff could not be obtained.
30
CONCLUSION
The Indian Overseas Bank has been spreading its branches to all
areas. Being continuously engaged in innovative fields, it has
pioneered each and every state.
It would have been observed from the contents of the chapter and
paragraphs given here-to-fore that the following facts emerge very
clearly:-
The today’s scenario signals that there is a lot of potential for the
growth of insurance sector as the people are becoming more &
more concerned about the safety & security of themselves & their
loved ones. This increasing awareness & concern about the need
for insurance requires the presence of expert people who can
guide & advice people about insurance & suggest them the
products that fits their needs perfectly.
An Insurance Advisor is the one who can take up this responsibility
& help people in this. It will not only be beneficial for the society
but it will also give him an opportunity to grow, to earn & achieve
self-satisfaction. And with a backup of a reputed company like ICICI
Prudential Life Insurance, there seems no barrier in achieving this.
The future of Indian Overseas of India is very bright, place of pride
assured, eminence and prominence guaranteed and profitability
and commercial viability beyond any threat or doubt for years to
come.
As a summer trainee I had suggested a proper evaluation
procedure either through conducting a survey or by observing
employees. With the help of the suggestions given by the
31
employees and its open view about the changing global scenario,
Indian Overseas bank is constantly involved in bettering the best.
32
BIBLIOGRAPHY
1. The Journal of Institute of Bankers.
2. Personal Management – Arun Monappa, Mirza, Saiyadain.
3. Principles of Bank Management – P Subba Rao.
4. Know your bank – Booklets of Punjab National Bank & Indian
Overseas Bank.
5. Research Methodology – K.C. Kothari
6. Insurance chronicle published by ICFAI University.
7. Web sites of the three banks
www.indianoverseas.com
www.iob.com
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ACKNOWLEDGEMENT
"Acknowledgement is an out, one can write glib stanzas without
meaning a word, on the other hand one can make a simple
expression of gratitude".
Though the knowledge is a poor substitute for the sentiments, yet
there is no way out to recover to it for expressing my prefound
gratitude, indebtedness and sincere regards of to Apeejay
Management Institute and IT for giving me this platform from
where I could work on live project and research.
I am extremely thankful to Mr. R.K. Mohanty (Chief Manager) for
his support and guidance to complete this project.
I would also like to thank all those employees of Indian Overseas
Bank who helped me in my project study.
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CONTENT
Topics Page No.
Introduction 1
Objectives 3
Research Methodology 4
Insurance Industry 5
Benefits of life insurance 9
Company Profile: Indian Overseas Bank 15
Genesis of IOB 16
IOB main features 21
IOB Organizational Structure 23
Funds, accounts and audit 35
Insurance Industry Analysis 43
Limitations 49
Conclusion 50
Bibliography 52
PREFACE
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Today in the banking sector every bank nationalized or private are
striving to reach the pinnacle. Though in the national scenario the
Govt./Nationalized banks are leading bank in the metropolitan context
the private banks are leading both in business as well as service.
STANDARD CHARTERED has built its leadership by making itself as
one on the world’s leading emerging bank. in the present scenario when
it has become difficult to survive in such a cut throat competition,
STANDARD CHARTERED is able to not only survive but to hold top
position in markets banking sector the bank serves both consumer and
wholesale banking customers. The consumer bank provides SAVING
A/C’s, credit cards, personal loans, mortgages, etc. and the wholesale
bank provides services to national and multinational clients in trade
finance, cash management, custody, lending etc.
This study is basically divided into five major parts. The first part of
the report includes the introduction of the study. The second part
deals with the bank profile of Standard Charted and its competitor
UTI Bank, their objectives, methodology and services provided by
them. The third part includes Area of study and Research Design of
Standard Chartered. The fourth part is related to survey and
analysis of the bank. The last part deals with conclusions,
recommendations and limitations of the study.
EXECUTIVE SUMMARYI have done my summer internship with STANDARD CHARTERED BANK.
My whole summer internship was divided into three sections.
In the first section of my summer internship I was into the hard-core selling of saving
accounts, in the second section I have analyzed the behavior of the people who are opening
an account with STANDARD CHARTERED.
36
The following project starts with an idea regarding the banking sector and also the profile of
STANDARD CHARTERED. It also informs how an account can be made with the
STANDARD CHARTERED. The project contains the comparison of Standard Chartered
with UTI Bank with respect to their saving accounts.
The comparison is followed by the survey and its analysis and at the end the
recommendations which could help STANDARD CHARTERED to be more effective in the
field of banking sector.
TABLE OF CONTENTS
1. INTRODUCTION TO THE INDUSTRY
2. INTRODUCTION TO THE COMPANY
3. RESEARCH METHODOLOGY
Title
Objectives
Scope of the Study
Area of the study
Methodology
Research Design
Statistical Tools used
Limitations of the Study
37
4. FACTS AND FINDINGS
5. RECOMMENDATIONS
6. CONCLUSION
7. BIBLIOGRAPHY
8. ANNEXURE QUESTIONAIRE
COMPARISON CHART___________________________________
CERTIFICATION
This is to certify that Arnab Hazra, Roll No - 11/108, PGP IIA has
successfully undertaken the project "Implementation Of CRM in
Banking Industry, A Case Of ICICI Bank" assigned to me under
my guidance.
[ARNAB HAZRA] [Dr ALOK SAKLANI]
ROLL NO - 11/108
PGDBM IIA
DATED : 4/4/05
ACKNOWLEDGEMENT
The report submitted by me is a reflection of the efforts of
many people associated with ICICI Bank of several Branches
with each one playing a different role.
38
At this very juncture I would like to express my sincere
gratitude to my project guide Dr Alok Saklani, Programme
Director for providing constant guidance and encouragement.
His constructive criticism and suggestion benefited me a lot.
I express my most sincere thanks to entire team of ICICI Bank,
who were always ready to provide me their guidance and
support on any problem and sharing their knowledge with me.
In the research process I also took help of other Pvt. sector
Banks like UTI Bank, HDFC Bank so I thank them all for their
effective cooperation.
I sincerely welcome suggestions and constructive criticism.
[ARNAB HAZRA]
ROLL NO - 11/108
PGDBM IIA
EXECUTIVE SUMMARY
I did this project work mainly with the new advent of CRM
strategies in the Banking Sector. However this has become a new
dilemma in the service industry that all the companies are highly
curious to launch the new practice of CRM into the system for
better performance.
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But here lies a big question how far the new strategies are
properly implemented to make the system user-friendlier to
customers?
In this small research I mainly dealt with negative aspects of
CRM. I concentrated my research mainly on those aspects
whether excessive marketing strategies due to CRM
implementation are irritating customer.
I have conducted my research focussing mainly on ICICI Bank
and I have also taken data from other private sector Banks to
make the study more interesting and purposeful.
40