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CURRENT ACCOUNT DEPOSITS -DEVELOPMENT OF PRODUCTSSUGGESTIONS FOR MOBILISATION OFCURRENT ACCOUNT DEPOSITS

Presented By :

Zainab Ahmed

Roll No46Dept. of PGDBM

ISM, Ranchi .

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Why This Topic ?

&

What was my Job

?

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OBJECTIVE OF THE STUDY :

The basic objective of this project is to study the Current AccountDeposits and

the factors which can develop the product and helps to mobilize thesame .

It aims to check the awareness level of the Current Accountcustomers as to how

much knowledge of the product they are having .

The study also aims at finding out what are the additionalfacilities the Current

Account customers of Bank Of Baroda desire to have and whetherthose facilities

are beneficial for the Bank or not ? To find out the customers complaints and suggestions regarding

the Banking services provided to them .

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Company Profile :

Type Public Sector

Industry Banking , Financial Services , Investment Services

Founded 1908

Headquarters Mumbai , India

Key People Shri M D Mallya Chairman & Managing DirectorShri Rajiv Kr Bakshi Executive DirectorShri N.S.Srinath Executive Director

Products Finance and Insurance , Consumer Banking , CorporateBanking, Investment Banking, Investment Management,Private Banking, Mortgage , Credit Cards

Revenue Rs.17,754 crores as on 31st May, 2010

Total Assets Rs. 2,274 bn as on 31st May,2010

Website www.bankofbaroda.com

http://en.wikipedia.org/wiki/File:Optimized_image_23004c8f.png

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Bank of Baroda Share Holding Pattern:

Entity Percentage

Govt. Of India 53.08%

Domestic Institutions 22.10%

Foreign Institutional Investors 14.2%

Others 9.90%

Bank of Baroda is an international level banking products and service

provider of India. It is among few Indian banks that has a global presence .

It operates in 25 countries of the world .

Products and services:

Bank of Baroda offers products and services such as deposits, business

banking services, loans and advances and lockers.

In corporate banking section, Bank of Baroda offers products and services

like wholesale banking, loans and advances, deposits and corporate

banking services.

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Brief history:

Bank of Baroda was incorporated in 1908 by Maharaj SayajiraoGaekwad

III. It launched its first branch in 1910 in Ahmedabad. In 1953, itsfirst

branches in Kampala and Mombasa became operational. Itsoverseas

branch in Nairobi was opened in 1954.

Awards And Recognitions :

On March 22,2007 AMITY Leadership Award for sectoral

excellence in Banking

On October 26,2007 Best Bank Award in Public Sector andBest

Bank in Home Loan

On March 2008 It was conferred with Bank Of The Yearaward

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Branch Network Of Bank Of Baroda( as on 14th May,2010 )

Area No. Of branches

Metro 675

Urban 580

Semi-Urban 721

Rural 1127

Extension Counters 26

Total ( Indian) 3129

Foreign (Overseas) 70

Total (Global) 3199

Controlling Offices

Zonal offices 10

Regional offices 43

Human Resources (Staff as of September 2006)

Officers 13525

Clerks 16497

Sub-Staff 8041Total 38063

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MISSION:-

VISION:-The global vision of Bank of Baroda encompasses transformation into acustomer centric organization of International Standards through

technological up-gradations & physical presence across the globe.

STRATEGIC GOALS:-The strategic goals of Bank of Baroda are:-

The development of a customer centric business,The delivery of product through multi-channel distribution,The set up of new lines of Business through re-organization of existing lines

of business along customer requirements,The set up of global functions by way of establishment of a corporate centre,

An improvement of operational effectiveness.

To be a top ranking National Bank of International

Standards Committed to augmenting stakeholders,

value through concern, care & competence.

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CURRENT ACCOUNT

Current Account are cheque operated accounts maintained for mainly business

purposes. Unlike Savings bank account no limits are fixed by banks on thenumber of transactions permitted in the Account. Banks generally insist on a

higher minimum balance to be maintained in current account. In terms of RBI

directive banks are not allowed to pay any interest on the balances maintained in

Current Accounts. However, legal heirs of a deceased person are paid interest at

the rates applicable to Savings bank deposit from the date of death of the

account holder till the date of settlement.

WHO CAN OPEN A CURRENT ACCOUNT ?

(i) Any person competent to contract and satisfactorily introduced to the Bank

may open an account in his/her own name. He/ She may not open more than

one such account. Accounts may be opened in the names of two or more

persons.

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ii) Accounts can be opened for sole proprietorship firms, partnership firms,private limited and public limited companies, Joint Hindu families, trusts,clubs, associates etc. satisfactorily introduced to the Bank and on fulfillinglaid down procedures and tendering required credentials.

(iii) Accounts can be opened by minors of 14 years and above, if able to read andwrite, in their sole names.

(iv) The Bank does not recognized trusts.

HOW TO OPEN A CURRENT ACCOUNT ?

(a) An application in the prescribed format must be submitted to the Bank.

(b) A recent 2 Passport size photograph of the accountholder / holders have to besubmitted .

(c) The Account is to be introduced by an existing Current Account holderhaving minimum 6 months old satisfactorily & actively conducted KYCcomplied Account with the Bank

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BANK OF BARODA TYPESOF CURRENT ACCOUNT:

Slide 12.docx

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Types Of Current Account and their IndividualShare :

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Comparative Study Of major Nationalised Banks:

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Rs. 10000 Bal..xls

Comparative Study With Private Sector

Banks:

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sa-excel.xls

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Summarisation of Comparative Study:

Some Banks also provide Loan Facility in Current accounts

and there is waiver of processing charges in Current Account .

Waiver of Stop Payment charges in Current Account.

Dividend warrants facility for the corporates in their CurrentAccount can be provided.

Diversify the Product range in Current Account for Ruralareas, for Corporates , for Agriculture and for individuals

according to their Needs and requirements by Private sectorBanks .

The Quarterly Average Balance could be lowered and sweepfacility could be made more attractive .

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Comparative Study with Private Banks :

The service and processing charges in CurrentAccount of Private sector Banks are comparativelyhigher than Nationalized Banks .

However the Customer Service of Private sectorBanks are much more effective .

The Private sector Banks have a much more

diversified product range in Current Account .

RESEARCH METHODOLOGY

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RESEARCH METHODOLOGY

:Sample Size :

120 persons visiting the BOB Main Branch and 50 personswithin the radius of 3 km of the branch .

Method Of Data Collection : Scheduling and Personal Interview

Sampling Area : BOB- Main Branch , Hindpiri , Ekra Masjid area

MG road, Church road & Kalaltoli road .

Sampling Type : Random Sampling

Data Type (Collection of Data):

Primary Data

Secondary Data

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Limitations Of The Study : As the sample size was very small of 120 people visiting the branch and 50

people within the radius of 3km the result of the survey may not represent the

actual picture of the whole population.

Though the questionnaire was pre-tested ; certain no of questions maybe

lacking which could have contributed more in getting the true picture of the

situation.

Usual Sampling errors may exist .

Some of the Respondents were uninterested and did not replied genuinely ;

Some of them were unwilling to talk ; some of them did not had time to

respond and they were quite annoyed with the questionnaire.

Respondents may also be biased due to personal reasons and Multiple

Banking.

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Asked from people entering the Branch :

Are you a customer of BOB ?

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Are you aware of the facilities provided in yourCurrent Account ?

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Which Product of BOB you have taken ?

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How often you do the transactions ?

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Are you aware of Internet Banking ?

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Are you satisfied with the services of Bank?

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Asked from people outside the Branch :

Are you a customer of any Bank ?

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Of which Bank you are the customer ?

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Do you have multiple Accounts in other Banks?

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Any Suggestions ?

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ANNEXURE :

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New Product Development:

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SERVICES :The following are the services which can be

provided by Bank under Cash ManagementServices :

Account Reconcilement Services

Cash Collection Services

Automated Clearing House

Balance Reporting Services

Positive Pay

Sweep Accounts

FINDINGS :

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FINDINGS :

Most of the Customers were localities and belong to nearby radius of3km consisting of Hindpiri , Ekra Masjid area, MG road , Church

road and Kalaltoli area . Most of them belong to lower middle classincome group .

People are not ready to accept Debit Card / Internet Banking & otherfinancial Products largely due to their orthodox nature and therebelief in Traditional Banking .

People have very low income group therefore could not maintainQuarterly Average Balance .

Large no of Banks are situated at Main Road Ranchi and there is atough competition between them.

People are not able to maintain Premium and Privilege CurrentAccount due to high QAB .

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There is an ample scope for opening Savings BankAccount here .

There is lack of human resource and their is morework pressure on the employees.

There is shortage of number of counters for Customer

Dealing.

There is less awareness among the people regardingdifferent financial Products offered by Bank .

CONCLUSION

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CONCLUSION :Current Account are very low cost deposits for the bank which are maintained

only for business purposes. Bank of Baroda offers 3 types of current accounts .

Baroda Advantage Current Account

Baroda Premium Current Account

Baroda Premium Current Account-Privilege

The ratio of Current Account deposits to Savings Account is very low becauseSavings Accounts can be open for general saving purposes and the QAB required

is comparatively very low . During 2008-09 The Bank launched several new IT

products and services such as Phone Banking Service, Baroda Connect ,Corporate

Cash Management System etc., to increase Customer convenience and also to

reduce transaction cost .

Today Banks are laying stress on KYC Norms for safety purposes. BOBneeds to

diversify its product range in Current account to increase its customer base

.

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