PROJECT REPORT

On

CENTRAL BANK OF INDIA

Submitted By

Wayne Castelino

(Roll No: 02)

S.Y.J.C

Holy Family Junior College

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CENTRAL BANK OF
INDIA

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 BANKING STRUCTURE IN INDIA

Scheduled banks in India

(A) Scheduled commercial banks

Public sector banks Private sector banks Foreign banks in Regional rural bank
India
(28) (27) (29) (102)
Nationalized bank Old private banks
Other public sector New private banks
bank (IDBI)
SBI and its associates

(B)Scheduled co-operative banks

Scheduled urban co-operative banks (55) Scheduled state co-operative banks (31)

Here we more concerned about public sector banks and competition among them. Today,
there are 28 public sector banks in the banking sector: 19 old private sector banks and 8 new
private sector banks.

These new banks have brought in state-of-the-art technology and aggressively marketed their
products.

The Public sector banks are facing a stiff competition from the new private sector banks.

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ADVANCES TO WEAKER SECTIONS

During the year, the Bank has extended loans of Rs. 13214.22 crore to various categories of
weaker sections which constitutes 10.07% of ANBC, which is above the target(10%)
envisaged by Government.

ADVANCE TO MINORITY COMMUNITIES

Govt. of India in its new Prime Minister’s 15 point programme for welfare of Minorities has
envisaged a target of 15% of priority sector lending to minority communities. Bank has
extended various loan facilities amounting to Rs. 6179.54 crore to541224 beneficiaries,
belonging to different Minority communities which accounts for15.16% of Priority Sector
lending as on 31.03.2012.

ADVANCES TO WOMEN BENEFICIARIES

Credit disbursement to women beneficiaries, has improved over the past year resulting the
outstanding credit to women as on 31st March 2012 at Rs. 6585.14 crore. This is 5.02 % of
ANBC as against the stipulated RBI norms of 5% of ANBC.

DIFFERENTIAL RATE OF INTEREST (DRI)

Advances under DRI scheme were Rs. 35.18 crore on 31st March 2012.

CENTRAL KISAN CREDIT CARD (CKCC)

Bank has issued Kisan Credit Cards to 1369858 beneficiaries till 31st March2012, amounting
toRs. 8428.05 Crore.

SOCIAL SECURITY SCHEMES

1. JANSHREE BIMA YOJANA

The scheme is operated in association with LIC of India to provide life insurance cover to
rural and urban poor women, who are below or marginally above the poverty line and who
are members of credit linked women SHGs of our Bank. Bank has already covered 21267
women beneficiaries with premium amounting to Rs. 21.26 lakhs during the year 2011-12.

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2. RASHTRIYA KRISHI BIMA YOJANA

Under the scheme, cover is extended to the farmers for the losses due to on-preventable risks
like natural calamities etc. The above scheme is available throughout the country for cereals,
oilseeds in the notified states / areas.

Asset & Liability Management Systems

ALM mainly deals with measuring and managing the liquidity and Interest rate risk of the
Bank with an objective of profit maximization. ALCO (Asset & Liability Committee) met 24
times during the year to review the position of the Bank with regard to liquidity and other
related matters.

Besides regulatory reporting, ALM is also engaged in Interest determination on Deposits as

well as Base rate and BPLR fixation. ALM department presents different analysis with regard
to position of idle assets (Cashin hand, Balance with other banks etc.), rate of interest wise/
Base Rate/BPLR/ Fixed Rate wise classification of advances, comparative working results of
peer banks vis--via our bank etc. before top team for making meaningful decisions.

Implementation of Basel II Guidelines

Reserve Bank of India has issued updated master circular on implementation of the New
Capital Adequacy Framework in July 2011. As per the guidelines, the Bank has adopted
Basel 1 norms with effect from 31st March 2009 and provided capital as per Standardized
Approach for Credit Risk, Basic Indicator Approach for Operational Risk and Standardized
Duration method for Market Risk.

Bank has appointed a solution provider for implementation of the internationally reputed SAS
Risk Management solution throughout the bank to meet Basel II norms. Reserve Bank of
India has set out timelines to the commercial banks for graduation to advanced approaches.
Banks were advised to undertake an internal assessment of their preparedness for migration
to advanced approaches. Our Bank is the first among all commercial banks to have submitted
its application to RBI for graduating to The Standardized Approach (TSA) under Operational
Risk. The Bank has appointed a consultant to evaluate /assess the preparedness of the Bank
for moving to advanced approaches in respect of all risks and to enhance / Strengthen
existing Risk Management Systems, Policies, Procedures, Process, MIS, Analytics etc and
also to implement integrated risk management system in the Bank. All necessary policies

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such as Credit Risk Management Policy, Operational Risk Management policy, Market Risk
Management Policy, Credit Risk Mitigation and Collateral Management Policy, Market
Discipline and Disclosures Policy, ICAAP etc are in place duly approved by the Board.

SUBSIDIARIES AND JOINT VENTURES

CENTBANK HOME FINANCE LIMITED

The Net Profit of the Company stood at Rs. 5.72 crore as at March 2012, as against the level
ofRs. 9.36 Crore as of March 2011. The main reason for decrease in profit ison account of
increase in cost of funds borrowed i.e. hike in Base Rate of funds lent by Central Bank of
India and overall increase in establishment and other expenses. The loan outstanding
increased fromRs. 282.13 Crore as on March 2011 to Rs. 290.30 crore as on March 2012.

The Company has consistently improved its Net Own Fund by adding Profit to the Reserves.
Net worth has gone up from Rs. 55.21 crore in March 2011 to Rs. 57.44 crore in March 2012.
Deposits from public and institutions have increased from Rs. 48.03 crore as on March 2011
toRs. 48.34 crore as on March 2012.

CENT BANK FINANCIAL SERVICES

Cent bank Financial Services Limited is essentially providing ancillary corporate financial
services. During the year 2011-12, CFSL has significantly diversified its business profile to
make CFSL a full-service investment bank. CFSL services include:

• Project Appraisal and Loan Syndication

• Capital market Transactions (both equity and debt)

• Corporate Advisory Services including M&As and Debt Restructuring, Project Advisory,
Securitization, Risk Management, Business Valuations, Private Equity and TEVReport

• Trusteeship Services including debenture/security Trustee, Executor Trustee, Managing

Charitable Trusts

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• The company earned a Net Profit of Rs. 9.30 crore as of March 2012 against Net Profit
of Rs.7.24 crore in the previous year.

INDO-ZAMBIA BANK LTD.

The Bank’s Joint Venture in Zambia is promoted jointly by Government of Zambia and three
India Banks viz. Central Bank of India, Bank of Baroda and Bank of India. While each of the
3 Indian Banks hold 20% equity, Govt. of Republic of Zambia holds the balance 40%equity.
The Bank has been performing well in all parameters. While the total business of the bank
stood at Rs. 1552.70 crore. As on 31st March 2012, the Bank earned aNet Profit of Rs. 36.14
crore.

AWARDS & ACCOLADES

• Bank has been ranked 4th best Public Sector Bank in India under “Brand Equity-Top 100
most trusted Brands 2011" and ranked at 16thposition in 2011 under "India’s Most Trusted
Service Brands" category as per survey conducted by Economic Times.

• Bank won Indira Gandhi Rajbhasha Award for successful implementation of Official
Language Policy at the hands of President Smt. Pratibha Devi Singh Patil.

• Bank has received the prestigious "Golden Peacock Award 2011"instituted by Institute of
Directors (IODs) under innovative product/service category for retail product "Cent Sahyog"
for MSME segment.

• Bank has been awarded as "Best BFSI Company" by Business & Economy magazine.

• Bank was awarded with Exemplary Brand Leader Award for projecting excellent Brand
image in the country by Indra Group of Institute, Pune .

• Bank was conferred 2 Awards for ‘Best HR Strategies’ &‘Innovation in Employee

Retention Strategies’ by Greentech Foundation, New Delhi.

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OBJECTIVES OF CENTRAL BANK OF INDIA

The Central Bank of India is one of the oldest Banks in India.

The objectives of the Central Bank of India are as follows:

 To help ensure the monetary stability of the country-

 To assist in regulating the financial system of the country,

 To formulate, implement and monitor the monetary policy. - To maintain the liquidity
in the country-

 To ensure adequate flow of credits. - Prescribes parameters for banking in the

country.

 Maintain public confidence in the system- To manage the foreign exchange

 Management Act. - To facilitate external trade.

 Issue and exchange currency-

 Maintain supply of currency.

 Own and operate the depository and exchange for government bonds. –

 Banker to the government

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S.W.O.T. ANALYSIS OF CENTRAL BANK OF INDIA

Introduction to SWOT Analysis.

The overall evaluation of the company‘s Strength, Weakness, Opportunities and Threats is

Called as SWOT Analysis

.The external environment analysis of any business will give you the opportunities and threats
facing the business. The external environment consists of two parts:

(1)Macro Environment

: Demographic, Economic, Technology, Political-legal, Socio-cultural

(2)Micro Environment

: Customers, Competition, Distributors, Suppliers. The Internal Environment Analysis will

give you the strength and weakness of the business.

STRENGTH WEAKNESS
Right strategy for the right products Some gaps in range for certain sectors
Superior customer service v/s competitors Customer service staff need training
Great brand image Processes and systems etc
High degree of customer satisfaction Management cover insufficient
Good place to work

OPPURTUNITIES THREATS
Profit margin will be good Legislation could impact
Extended to overseas broadly Great risk involved
New specialist applications Vulnerable to reactive attack by major
competitors
Could seek better customer deals Very high competition prevailing in the
industry

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RESEARCH METHODOLOGY

Data Collection Techniques:

This project consists of two parts. The first part is a study of the banking industry, Central
Bank of India using secondary data sources.

This secondary information has been sourced from the internet and from business related
magazines and news papers. The second part of the study has been done using an exploratory
research process and a structured questionnaire was developed for this purpose. For the
collection of primary data

This was the only method used. The reason I used this method is because a need was felt for
the free influx of information about the products. Also this method allowed the use of skills
gained in class.

Sampling Technique Used:

Since the information required was not of a very technical nature and also looking at the
scope of the project and the extent of the target segment, the sampling technique employed
was Convenience Sampling. I administered the questionnaires.

Sample Size:

I have restricted the sample size to 50 respondents. This was done keeping in mind the time
constraints and the fact that I felt that this number would be enough to serve the information
needs required to show the trends.

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Customer satisfaction

Customer satisfaction is equivalent to making sure that product and service performance
meets customer expectations. It is the perception of the customer that the outcome of a
business transaction is equal to or greater than his/her expectation. Customer satisfaction
occurs when the acquisition of products and /or services provides a minimum negative
departure from expectations when compared with other acquisitions and when the marginal
utility of a transaction is equal to or greater than preceding acquisitions. Customer
satisfaction occurs when the perception of the reward from the purchase of goods or services
by the customer meets or exceeds his/her perceived sacrifice. The perception is a
consequence of matching past purchase and consumption experience with the current
purchase.

Customer service and satisfaction

When we talk about customer service and/or satisfaction, we talk about creativity. Creativity
allows us to handle or diffuse problems at hand or later on rather in the process of conducting
the everyday business. We talk about how, or what, does the organization have to do to gain
not only the sale but also the loyalty of the customer.

 We want to know the payoff of the transaction both in the short and long term.

 We want to know what our customers Want?

 We want to know if our customers are satisfied. Satisfaction, Of course, means that
what we delivered to a customer met the customer‘s Approval.

 We want to know if customers are Delighted and willing to come

 Some of the issues that will guarantee failure in sales, satisfaction, and loyalty are:
 Employees must adhere to a rigid chain of command
 Employees are closely supervised
 Conflict in whatever form is not allowed
 Rewards are based on carrot-and-stick principles

 Wrong objectives are measure

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We must understand customer expectation levels concerning quality. We must also
understand the strategy for customer service quality, and next we must understand the
measurement and feedback cycles of Customer satisfaction.

The customer is the person or unit receiving the output of a process on the system. In fact, it
is worth emphasizing that a customer can be the immediate, intermediate, or ultimate
customer. Also, a customer may be a person or persons, or a process or processes. Customer
satisfaction, however, is when the customer is satisfied with a product/service that meets the
customer’s needs, wants, and expectations.

There are at least three levels of customer expectations about quality:

Level 1

.Expectations are very simple and take the form of assumptions, must have, or take it for
granted. For example, I expect the airline to be able to take off, fly to my destination, and
land safely. I expect to get the correct blood for my blood transfusion and I expect the bank to
deposit my money to my account and to keep a correct tally for me.

Level 2

.Expectations are a step higher than that of level 1 and they require some form of satisfaction
through meeting the requirements and/or specifications. For example, I expect tobe treated
courteously by all airline personnel. I went to the hospital expecting to have myhernia
repaired, to be in some pain after it was done, to be out on the same day, and to receivea
correct bill. And I went to the bank expecting the bank teller to be friendly, informative, and
helpful with my transactions.

Level 3

Expectations are much higher than for levels 1 and 2. Level 3 requires some kind
of Delightfulness or a service that is so good that it attracts me to it

For example, an airline gives passengers travelling coach class the same superior food
service that other airlines provide only for first-class passengers. In fact, I once took a flight
where the flight attendants’ actually baked cookies for us right there on the plane. When I
went to the hospital, I expected staff to treat me with respect and they carefully explained
things to me. But I was surprised when they called me at home the next day to find out how I

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was doing. And at my house closing, the bank officer, representing the bank holding my
mortgage, not only treated me with respect and answered all my questions about my new
mortgage, but just before we shook hands to close the deal, he gave me a housewarming gift

Customer satisfaction surveys help to:

 Improve customer, client, or employee loyalty

 React quickly to changes in the market.

 Identify and capitalize on opportunities.

 Beat the competition. Retain or gain market share. Increase revenue.

 Reduce costs.

COMPANY’S EFFORT TO ENSURE SATISFACTION OF CUSTOMERS

: Objectives of Central bank of India

 Promote good and fair banking practices by setting minimum standards in dealing
with you

 Increase transparency so that you can have a better understanding of what you can
reasonably expect of the services;

 Encourage market forces, through competition, to achieve higher operating standards

 Promote a fair and cordial relationship between you and your bank

 Foster confidence in the banking system

To Help You to Understand How Our Financial Products and Services Work By

 Giving you information about them in any one or more of the following languages:
Hindi, English or the appropriate local language.

 Ensuring that our advertising and promotional literature is clear and not misleading

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  Ensuring that you are given clear information about our products and services, the
terms and conditions and the interest rates/service charges, which apply to them

 Giving you information on what are the benefits to you, how you can avail of the
benefits, what are their financial implications and whom you can contact for
addressing your queries

To Help You Use Your Account Or Service By:

 Providing you regular appropriate updates

 Keeping you informed about changes in the interest rates, charges or terms and
conditions.

Information

You can get information on interest rates, common fees and charges through any one of the
following:

 Looking at the notices in our branches ;

 Phoning our branches or help-lines;

 Looking on our website;

 Asking our designated staff/help desk ;or

 Referring to the service guide/ Tariff Schedule.

Before You Become a Customer we will:

 Give you clear information explaining the key features of the services and products
you tell us you are interested in

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  Give you information on any type of products and services which we offer and that
may suit your needs;

 Tell you if we offer products and services in more than one way

 ATM on the Internet, over the phone, in branches and so on] and tell you how to find
out more about them

Advertising, Marketing and Sales

We will make sure that all advertising and promotional material is clear, and not misleading.

In any advertising in any media and promotional literature that draws attention to banking
service or product and includes a reference to an interest rate, we will also indicate whether
other fees and charges will apply and that full details of the relevant terms and conditions are
available on request.

Information about our other products or promotional offers in respect of our

products/services, will be conveyed to you only if you have given your consent to receive
such information/ service either by mail or by registering for the same on our website or on
our phone banking/customer service number.

We have prescribed a code of conduct for our Direct Selling Agencies (DSAs) whose
services we may avail to market our products/ services which amongst other matters requires
them to identify themselves when they approach you for selling our products personally or
through phone

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