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

DIVYA KATYAL
BBA-III Roll No.0310

Submitted by:

APEEJAY INSTITUTE OF MANAGEMENT & IT DWARKA, 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, students 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 Banks 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
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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

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.

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
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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, another value 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 IOBJEEVAN 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.
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we have designed yet

add scheme to provide life cover of all SB/CD

Age 18-45 36-45 46-55 Medical Examination

Premium p.a. Rs. 213/Rs. 321/Rs. 753/-

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.

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
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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:

Policyholders 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

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mortgage. Thus, a life insurance policy in effect brings about compulsory savings. 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

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Death is not the only hazard that is insured; many policies also include disability benefits. Typically, these provides for waiver of 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

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extension or a combination of these policies. So, what are these policies and how do they differ from each Other? 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
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his family's needs. As a result of these drawbacks, insurance firms now offer either a modified Whole Life Policy or combine. 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.

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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. 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.

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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 Banks 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
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time to time by customers to the amount available on their current accounts. Banking is accepting for the purpose of lending or repayable on

investment, deposits of money from the public

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 10 th 1937, by Shri.M.Ct.M. Chidambaram Chettyar, a pioneer in many fieldsbanking, 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
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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 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 activities and

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.

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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 IOBs 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.

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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

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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 banks global deposits stood at Rs. 24,318 Crore and global gross advances stood at Rs. 11,573 crore. The banks 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

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IOBS 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.

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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.

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INSURANCE INDUSTRY ANALYSIS

MARKET SHARE IN FY-2002-2003

6%

Private Players LIC

94%

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.
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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, theyd 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. 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.

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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.

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M A R K E T S H A R E U N D E R G R O U P S C H E M E I N A P R IL 2 0 0 4

P R IV A T E P L A Y E R S 28% P R IV A T E P L A Y E R S L IC IO B 72%

MARKET SHARE AMONG PRIVATE PLAYERS UNDER GROUP SCHEME IN APRIL 2004

12% 2%

0% 19% Allianz Bajaj Tata AIG AMP Sanmar 1% SBI Life ING Vysya HDFC Standard Max New York 18% Birla Sunlife IOB Om Kotak ICICI Prudential Met Life

21%

10% 1% 5% 11%

0%

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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

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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.

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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 very clearly:The todays 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
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emerge

employees. With the help of the suggestions given by the employees and its open view about the changing global scenario, Indian Overseas bank is constantly involved in bettering the best.

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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 Introduction Objectives Research Methodology Insurance Industry Benefits of life insurance Company Profile: Indian Overseas Bank Genesis of IOB IOB main features IOB Organizational Structure Funds, accounts and audit Insurance Industry Analysis Limitations Conclusion Bibliography Page No. 1 3 4 5 9 15 16 21 23 35 43 49 50 52

PREFACE
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.
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STANDARD CHARTERED has built its leadership by making itself as one on the worlds 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/Cs, 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 SUMMARY
I 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. 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. 35

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

4. FACTS AND FINDINGS 5. RECOMMENDATIONS 6. CONCLUSION 7. BIBLIOGRAPHY 8. ANNEXURE

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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] ROLL NO - 11/108 PGDBM IIA DATED : 4/4/05

[Dr ALOK SAKLANI]

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. 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.

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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. But here lies a big question how far the new strategies are properly implemented to make the system user-friendlier to customers?
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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.

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