Marketing of FINANCIAL SERVICES PROVIDED BY

A PROJECT REPORT By Nirav Bhatt Batch: 2010-2012 To Director (MBA) In partial fulfillment of the requirements of Global Business Scholl And Research Center, Pune For the award of the degree of Masters of Business Administration

DR. D. Y. PATIL VIDYAPEETH, Pune

JULY 2011
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ACKNOWLEDGEMENT

Through this acknowledgement we express our sincere gratitude towards all those persons who helped us in the preparation of this project that has been a learning experience. We express our sincere thanks to all the professors who guided us and gave us valuable suggestion and encouragement. We would like to express our sincere thanks to Mr. Anand Kashyap (Branch Manager Dena Bank, Jamnagar), and Mr. Hitesh Chhaya (Branch Operations Manager Dena Bank, Jamnagar) for their guidance and support throughout this project and also for suggesting and providing the related literatures on this topic. Last but not the least; we are also thankful to honorable director Mr. R. U.Dholakya for giving us the opportunity to learn by allowing us to do this project.

Nirav Bbhatt Date: 01/07/2011 Place: Pune

EXECUTIVE SUMMARY

In todays competitive and technological world each and every bank wants to grab the customer at any cost and by providing best services. The bank has to provide various services/schemes to maintain their customer and to attract new customers. Now days each and every industries are introducing different products every day, same way banks are also introducing different products for long term benefit of their customers. Products in banking terms called FINANCIAL PRODUCTS and there are totally different procedures for financial products. There are different instruments also available for financial transactions like cheque, pay in slip, passbook, cheque book, DD, INSTA ATM card, Credit Card, Debit Card, Notes, Coins etc. To make right transactions at right time with right objective person need to have appropriate knowledge about subject. For this efficient marketing and sales team should be there with banks to find new customers and help and satisfy needs of existing customers. During our summer training program I observed most of financial products provided by bank from accepting deposits to lending money. There are some operations which the person cannot perform without having proper knowledge about those services like service of Deenaiconnect. Most appropriate service of DENA BANK is that they are very loyal towards their customers. During my training I got opportunity to work and gain knowledge under the guidance of Mr. Anand Kashyap Branch Manager JAMNAGAR Branch. I also worked with Mr. Hitesh Chhaya Operation Manager where we get knowledge about various banking services. Overall experience of this summer training at DENA BANK, JAMNAGAR Branch was very good. In future also we are expecting their co-operation.

TABLE OF CONTENTS
Sr. No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 Description Acknowledgement Executive Summary Table of Contents List of Abbreviations Objective of the study Ch.1 .Overview of Banking Ch.1 .Overview of Banking 1.2 History of Bank 1.3 Functions of Bank 1.4 Banking Products 1.5 Introduction to financial services 1.6 Features of financial services 1.7 Importance of financial services 1.8 Sources of revenue 1.9 Objectives of financial services 1.10 Causes of financial innovation 1.11 Present scenario of financial services Ch. 2. Various channels through which products & services are offered by bank 2.1 Branches 2.2 Mobile Banking 2.3 Telephone Banking 2.4 Internet Banking 2.5 Automated Teller Machine (A T M ) Ch.3. Various Products And Services Of Banks 3.1 Deposits 3.2 Credit cards 3.3 Loans 3.4 Investments Ch.4. Innovative Financial Products & Services 4.1 Merchant Banking 4.2 Loan syndication 4.3 Leasing 4.4 Mutual Funds 4.5 Factoring 4.6 Forfeiting 4.7 Venture Capital 4.8 Reverse Mortgage 4.9 New Products in Forex Market Ch. 5. Overview Of Dena Bank Page no. 1 4 5 8 9 10 10 10 11 11 12 13 14 15 16 16 18 20 20 21 21 23 25 27 27 28 29 30 33 33 33 33 33 33 33 33 33 33 34
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40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57

5.1 Introduction of Dena Bank 5.1.1 History Of Dena Bank 5.1.2 Logo 5.1.3 Mission 5.1.4 Vision 5.2 Product & Services 5.2.1 Dena Deposit Schemes 5.2.2 Dena Loans 5.2.3 International Banking Services 5.2.4 Corporate Specific Schemes 5.2.5 Other Services Ch. 6: Various Interest Rates 6.1 Deposit Rates 6.2 Lending Rates Ch.7 Description of work done Ch.8 Questionnaire Conclusion BIBILIOGRAPHY

34 34 34 36 36 37 37 45 56 66 72 68 74 86 90 104 107 108

List of Abbreviations
Sr. No 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12 13 14 15 16 17 18 19 20 21 22 Abbreviations DD RTGS NEFT ATM PLR RBI IT SEBI GNP SMS FD TDS FEMA TT SWIFT NRO NRE PIO NBCC HUDCO FCNR NSDL Full Form Demand Draft. Real Time Gross Settlement. National Electronic Fund Transfer. Automated Teller Machine. Prime Lending Rate Reserve Bank of India Information Technology Securities & Exchange Board of India Gross National Product Short Message Services Fixed Deposits Tax Deducted At Source Foreign Exchange Management Act Telegraphic Transfer Society for Worldwide Interbank Financial Telecommunication Non Resident Ordinary Non Resident Earning Persons of Indian Origin National Building Construction Corporation Housing & Urban Development Corporation Foreign Currency Non Resident Account National Securities Depositary Limited

OBJECTIVES OF THE STUDY

To know the working system of Dena bank. To understand different functions / Operations of banking system.

To Know Specifically various services/schemes provided by Dena bank and to know marketing strategy and values of Dena bank. To find out the obstacles in marketing of financial products. To enhance knowledge about the marketing and to check the skills of marketing.

CHAPTER 1:
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OVERVIEW OF BANKING
1.1 Introduction of bank:
A bank has been described as an institution engaged in accepting deposits and granting loans. It is the institution which deals in money and credit. It can also be described as an institution which borrows idle resources, makes fund available to those who need it and helps in cheap remittance of money from one place to another. In the modern time term bank is used in wider term. Now it does not refer only to particular place of lending and depositing money but it also acts as an agent which looks after the various financial problems of its customers.

1.2 History of bank:

Banking in India originated in the last decades of the 18th century. The first banks were The General Bank of India, which started in 1786, and Bank of Hindustan, which started in 1790; both are now defunct. The oldest bank in existence in India is the State Bank of India, which originated in the Bank of Calcutta in June 1806, which almost immediately became the Bank of Bengal. This was one of the three presidency banks, the other two being the Bank of Bombay and the Bank of Madras, all three of which were established under charters from the British East India Company. For many years the Presidency banks acted as quasi-central banks, as did their successors. The three banks merged in 1921 to form the Imperial Bank of India, which, upon India's independence, became the India. The second half of 19th century saw establishment of Bank of Baroda, Allahabad bank, and Punjab National Bank. These banks were set up by merchants and traders to combined trading with banking. These led to the series if failures of banks. The Dena bank is started in 1938. The strengthening of banking system took place after the establishment of Reserve Bank of India, 1939 as is empowers to regulate the banking money, inspection of mergers and acquisition in terms of Banking Companies Act 1949 which later came to be known as Banking Regulation Act 1949.

1.3 Functions of banks:

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Though borrowing and lending constitute the main functions of banking, yet they are not only functions of commercial banks. Commercial banks are involved in diversified activities and perform varieties of function. The functions of a modern bank are classified under the following heads:

Chart 1: Function of banks

1.4 Banking products:

Banks in India have traditionally offered mass banking products. Most common deposit products are Savings Account, Current Account, Term deposit Account and lending products being Cash Credit and Term Loans. Due to Reserve Bank of India guidelines, Banks have had little to do besides accepting deposits at rates fixed by Reserve Bank of India and lend amount arrived by the formula stipulated by Reserve Bank of India at rates prescribed by the latter. PLR (Prime lending rate) was the benchmark for interest on the lending products. But PLR itself was, more often than
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not, dictated by RBI. Further, remittance products were limited to issuance of Drafts, Telegraphic Transfers, and Bankers Cheque and Internal transfer of funds. In view of several developments in the 1990s, the entire banking products structure has undergone a major change. As part of the economic reforms, banking industry has been deregulated and made competitive. New players have added to the competition. IT revolution has made it possible to provide ease and flexibility in operations to customers. Rapid strides in information technology have, in fact, redefined the role and structure of banking in India. Further, due to exposure to global trends after Information explosion led by Internet, customers - both Individuals and Corporate - are now demanding better services with more products from their banks. Financial market has turned into a buyer's market. Banks are also changing with time and are trying to become one-stop financial supermarkets. A few foreign & private sector banks have already introduced customized banking products like Investment Advisory Services, Photo-credit cards, Cash Management services, Investment products and Tax Advisory services. A few banks have gone in to market mutual fund schemes. Eventually, the Banks plan to market bonds and debentures, when allowed. Insurance peddling by Banks will be a reality soon. The recent Credit Policy of RBI announced on 27.4.2000 has further facilitated the entry of banks in this sector. Banks also offer advisory services termed as 'private banking' - to "high relationship - value" clients.

1.5 Introduction to financial services:

The Indian financial services industry has undergone a metamorphosis since 1990. During the late seventies & eighties, the Indian financial services industry was dominated by commercial banks and other financial institution which cater to the requirements of the Indian industry. The economic liberalization has brought in a complete transformation in the Indian financial services industry. The term Financial Services in a broad sense means mobilizing and allocating savings. Thus it includes all activities involved in the transformation of savings into investment. The financial service can also be called financial intermediation. Financial intermediation is a
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process by which funds are mobilized from a large number of savers and make them available to all those who are in need of it and particularly to corporate customers. Thus, financial service sector is a key area and it is very vital for industrial developments. A well developed financial services industry is absolutely necessary to mobilize the savings and to allocate them to various investable channels and thereby to promote industrial development in a country. Financial services, through network of elements such as financial institution, financial markets and financial instruments, serve the needs of individuals, institutions and corporate. It is through these elements that the functioning of the financial system is facilitated. Considering its nature and importance, financial services are regarded as the fourth element of the financial system.

1.6 Features of financial service

Customer-Oriented: Like any other service industry financial service industry is also a customer-oriented one. That customer is the king and his requirements must be satisfied in full should be the basic tenant of any financial service industry. It calls for designing innovative financial products suitable to varied risk-return requirements of customer.

Intangibility: Financial services are intangible and therefore, they cannot be standardized or reproduced in the same form. Hence, there is a need to have a track record of integrity, reputation, good corporate image and timely delivery of services.

Simultaneous Performance: Yet another feature is that both production and supply of financial services have to be performed simultaneously. Therefore, both suppliers of services and consumers should have a good rapport, clear-cut perception and effective communication.

Dominance of Human Element: Financial services are dominated by human element and thus, they are people-intensive. It calls for competent and skilled personnel to market the quality financial products. But, quality cannot be homogenized since it varies with time, place and customer to customer.

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Perishability: Financial services are immediately consumed and hence inventories cannot be created. There is a greater need for balancing demand and supply properly. In other words, marketing and operations should be closely inter-linked.

1.7 Importance of financial services

Economic Growth: The financial service industry mobilizes the savings of the people and channels them into productive investment by providing various services to the people. In fact, the economic development of a nation depends upon these savings and investment.

Promotion of Savings: The financial service industry promotes savings in the country by providing transformation services. It provides liability, asset and size transformation service by providing large loans on the basis of numerous small deposits. It also provides maturity transformation services by offering short-term claim to savers on their liquid deposit and providing long-term loans to borrowers.

Capital Formation: The financial service industry facilitates capital formation by rendering various capital market intermediary services capital formation in the very basis for economic growth. It is the principal mobilizer, of surplus funds to finance productive activities and thus it promotes capital accumulation.

Provision of Liquidity: The financial service industry promotes liquidity in the system by allocating and reallocating savings and investment into various avenues of economic activity. It facilitates easy conversion of financial asset into liquid cash at the discretion of the holder of such assets.

Financial Intermediation: The financial service industry facilitates the function of intermediation between savers and investors by providing a means and a medium of exchange and by undertaking innumerable services.

Contribution to GNP: The contribution of financial services to GNP has been going on increasing year after year in almost all countries in recent times.
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Creation of Employment Opportunities: The financial service industry creates and provides employment opportunities to millions of people all over the world.

1.8 Sources of revenue

Accordingly, there are two categories of sources of income for a financial service company namely: fund based &fee- based. Fund-based income comes mainly from interest spread, lease rentals, income from investments in capital market and real estate. On the other hand, fee based income has its sources in merchant banking, advisory services, custodial services, loan syndication etc. income has its sources in merchant banking, advisory services, custodial services, loan syndication etc. A major part of income is earned through fund-based activities. At the same time, it involves a large share of expenditure in the form of interest & brokerage. It means that such companies should have to compromise the quality of its investment. On the other hand fee-based income does not involve much risk.

Chart 2: Classification of financial services

Fund-based Activities 1 .Leasing 2 .Hire Purchase 3 .Discounting 4 .Loans 5 .Venture Capital 6 .Housing Finance 7 .Factoring

Fee-based Activities

1 .Issue Management 2 .Portfolio Management 3 .Capital Restructuring 4 .Loan Syndication 5 .Merger & Acquisition 6 .Corporate Counselling 7 .Foreign Collaborations

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1.9 Objectives of financial services

Fund raising: Financial services help to raise the required funds from a host of investors, individuals, institution and corporate. For this purpose, various instruments of finance are used.

Funds deployment: An array of financial services is available in the financial markets which help the players to ensure an effective deployment of funds raised. Services such as bill discounting, parking of short-term funds in the money market, credit rating &securitization of debts are provided by financial services firms in order to ensure efficient management of funds.

Specialized services: The financial service sector provides specialized services such as credit rating, venture capital financing, lease financing, mutual funds, credit cards, housing finance, etc besides banking and insurance. Institutions and agencies such as stock exchanges, non-banking finance companies, and subsidiaries of financial institutions, banks & insurance companies also provide these services.

Regulation: There are agencies that are involved in the regulation of the financial services activities. In India, agencies such as the Securities and Exchange Board of India (SEBI), Reserve Bank of India (RBI) and the Department of Banking and Insurance of the Government of India, regulate the functioning of the financial service institutions.

Economic growth: Financial services contribute, in good measure, to speeding up the process of economic growth & development.

1.10 Causes of financial innovation

Financial intermediaries have to perform the task of financial innovation to meet the dynamically changing needs of the economy. There is a dire necessity for the financial intermediaries to go for innovation due to following reasons:

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Low profitability: The profitability of the major financial intermediary, namely banks has been very much affected in recent times. There is a decline in the profitability of traditional banking products. So, they have compelled to seek out new products which may fetch high returns.

Keen competition: The entry of many financial intermediaries in the financial sector market has led to severe competition among themselves. This keen competition has paved the way for the entry of varied nature of innovative financial products so as to meet the varied requirements of the investors.

Economic liberalization: Reform of the financial sector constitutes the most important component of Indias programme towards economic liberalization. The recent economic liberalization measures have opened the door to foreign competitors to enter into our domestic market. Deregulation in the form of elimination of exchange controls and interest rate ceilings have made the market more competitive. Innovation has become a must for survival.

Improved communication technology: The communication technology has become so advanced that even the worlds issuers can be linked with the investors in the global financial market without any difficulty by means of offering so many options and opportunities. Hence, innovative products are brought into the domestic market in no time.

Customer service: Nowadays, the customers expectations are very great. They want newer products at lower cost or at lower credit risk to replace the existing ones. To meet this increased customer sophistication, the financial intermediaries are constantly undertaking research in order to invent a new product which may suit to the requirement of the investing public. Innovations thus help them in soliciting new business.

Global impact: Many of the providers and users of capital have changed their roles all over the world. Financial intermediaries have come out of their traditional approach and they are ready to assume more credit risks. As a consequence, many innovations have taken place in the global financial sector which has its own impact on the domestic sector also.

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Investor awareness: With a growing awareness amongst the investing public, there has been a distinct shift from investing the savings in physical assets like gold, silver, land etc. to financial assets like shares, debentures, mutual funds etc. To meet the growing awareness of the public, innovation has become the need of the hour.

1.11 Present scenario of financial services

Conservatism to dynamism: At present, the financial system in India is in a process of rapid transformation, particularly after the introduction of reforms in the financial sector. The main objective of the financial sector reforms is to promote an efficient, competitive and diversified financial system in the country. This is essential to raise the locative efficiency of available savings and to promote the accelerated growth of the economy as a whole. The emergence of various financial institution and regulatory bodies has transformed the financial services sector from being a conservative industry to a very dynamic one.

Emergence of Primary Equity Market: The capital markets have become a popular source of raising finance. The aggregate funds raised by the industries have gone from Rs. 5976 crore in 1991-92 to Rs. 32382 crore in 2006-07. Thus the primary market has emerged as an important vehicle to channelize the savings of the individuals and corporates for productive purposes and thus to promote the industrial & economic growth of our nation.

Concept of Credit Rating: The investment decisions of the investors have been based on factors like name recognition of the company, reputation of promoters etc. now, grading from an independent agency would help the investor in his portfolio management and thus, equity grading is going to play a significant role in investment decision making. Now it is mandatory for non-banking financial companies to get credit rating for their debt instruments. The major credit rating agencies functioning in India are:
i. ii.

Credit Rating Information Services of India Limited. Credit Analysis and Research Limited.
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iii.
iv.

Investment Information and Credit Rating Agency. Duff Phelps Credit Rating Private Limited.

Process of Globalization: The process of globalization ha paved the way for the entry of innovative financial products into our country. The government is very keen in removing all obstacles that stand in the way of inflow of foreign capital. India is likely to enter the full convertibility era soon. Hence, there is every possibility of introduction of more and more innovative financial services in our country.

Process of Liberalization: The government of India has initiated many steps to reform the financial services industry. The Government has already switched over to free pricing of issues from pricing issues by the Controller of capital issues. The interest rates have been deregulated. The private sector has been permitted to participate in banking and mutual funds and the public sector undertakings are being privatized. The financial service industry in India has to play a positive and dynamic role in the years5 India has to play a positive and dynamic role in the years to come by offering many innovative products to suit to the varied requirements of the millions of prospective investors spread throughout the country.

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CHAPTER-2 VARIOUS CHANNELS THROUGH WHICH PRODUCTS & SERVICES ARE OFFERED BY BANKS

CHARTS 3: Various channels of services

2.1 Branches
A branch, banking center or financial center is a retail location where a bank, credit union, or other financial institution offers a wide array of face-to-face and automated services to its customers.
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In the period from 1100-1300 banking started to expand across Europe and banks began opening branches in remote, foreign locations to support international trade. Historically, branches were housed in imposing buildings, often in a neo-classical architecture style. Today, branches may also take the form of smaller offices within a larger complex, such as a shopping mall. Traditionally, the branch was the only channel of access to a financial institutions services. Services provided by a branch include cash withdrawals and deposits from a demand account with a bank teller, financial advice through a specialist, safe deposit box rentals, bureau de change, insurance sales, etc. As of the early 21st Century, features such as Automated Teller Machine (ATM), telephone and online banking, allow customers to bank from remote locations and after business hours. This has caused financial institution to reduce their branch business hours and to merge smaller branches into larger ones. They converted some into mini-branches with only ATMs for cash withdrawal and depositing; computer terminals for online banking and cheque depositing machines. Some financial institutions, to show a friendlier image, offer a boutique or coffee houselike environment in their branches, with sit-down counters, refreshments, and interactive displays. Some branches also have drive-through teller windows or ATMs.

2.2 Mobile banking

Mobile banking also known as M-Banking, SMS Banking is a term used for performing balance checks, account transactions, payment etc. Over the last few years, the mobile and wireless market has been one of the fastest growing markets in the world and it is still growing at a rapid pace. With mobile technology, banks can offer services to their customers such as doing funds transfer while travelling, receiving online updates of stock price or even performing stock trading while being stuck in traffic. A specific sequence of SMS messages will enable the system to verify if the client has sufficient funds in his or her wallet and authorize a deposit or withdrawal transaction at the agent. Many believe that mobile users have just started to fully utilize the data capabilities in their mobile phones. In Asian countries like India, China, where mobile infrastructure is comparatively
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better than the fixed-line infrastructure, and in European countries, where mobile phone penetration is very high, mobile banking is likely to appeal even more.

Mobile Banking Services

Account Information 1) Mini-statement and checking of account history 2) Alerts on account activity 3) Monitoring of term deposits 4) Access to loan statements 5) Access to card statements 6) Mutual fund/ equity statements 7) Pension plan management 8) Insurance policy management 9) Status on cheque, stop payment on cheque 10) Ordering cheque books 11) Balance checking in the account 12) Recent transactions 13) Due date of payment 14) PIN provision 15) Blocking of cards Payments, Deposits, Withdrawals and Transfers
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1) Domestics and international fund transfers 2) Micro-payment handling 3) Mobile recharging 4) Commercial payment processing 5) Bill payment processing 6) Peer to Peer payments 7) Withdrawal at banking agent

2.3 Telephone banking

Telephone banking is a service provided by a financial institution, which allows its customers to perform transactions over the telephone. Most telephone banking services use an automated phone answering system with phone keypad response or voice recognition capability. To guarantee security, the customer must first authenticate through a numeric or verbal password or through security questions asked by a live representative. With the obvious exception of cash withdrawals & deposits, it offers virtually all the features of an automated teller machine: account balance information and list of latest transactions, electronic bill payments, funds transfers between a customers accounts etc. Usually, customers can also speak to a live representative located in a call centre or a branch, although this feature is not always guaranteed to be offered 24/7. In addition to the selfservice transactions listed earlier, telephone banking representatives are usually trained to do what was traditionally available only at the branch: loan applications, investments purchases and redemptions, cheque book orders, debit card replacements, change of address, etc Banks which operate mostly or exclusively by telephone are known as phone banks. They also help modernize the user by using special technology.

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2.4 Internet banking

Internet banking or E-banking means any user with a personal computer and a browser can get connected to his bank -s website to perform any of the virtual banking functions. In internet banking system the bank has a centralized database that is web-enabled. All the services that the bank has permitted on the internet are displayed in menu. Any service can be selected and further interaction is dictated by the nature of service. The traditional branch model of bank is now giving place to an alternative delivery channels with ATM network. Once the branch offices of bank are interconnected through terrestrial or satellite links, there would be no physical identity for any branch. It would a borderless entity permitting anytime, anywhere and any how banking.

Internet Banking Services:

1) Bill Payment Service: You can facilitate payment of electricity and telephone bills, mobile

phone, credit card and insurance premium bills as each bank has tie-ups with various utility companies, service providers and insurance companies, across the country. To pay your bills, all you need to do is complete a simple one-time registration for each biller. You can also set up standing instructions online to pay your recurring bills, automatically. Generally, the bank does not charge customer for online bill payment.
2) Fund Transfer: You can transfer any amount from one account to another of the same or

any another bank. Customers can send money anywhere in India. Once you login to your account, you need to mention the payees account number, his bank and the branch. The transfer will take place in a day or so, whereas in a traditional method, it takes about three working days.
3) Credit Card Customers:

With Internet banking, customers can not only pay their credit

card bills online but also get a loan on their cards. If you lose your credit card, you can report lost card online.
4) Investment: You can now open an FD online through funds transfer. Now investors with

interlinked demat account and bank account can easily trade in the stock market and the amount will be automatically debited from their respective bank accounts and the shares
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will be credited in their demat account. Moreover, some banks even give you the facility to purchase mutual funds directly from the online banking system.
5) Recharging your Prepaid Phone: Now just top-up your prepaid mobile cards by logging

in to Internet banking. By just selecting your operator's name, entering your mobile number and the amount for recharge, your phone is in action within no time.
6) Shopping: With a range of all kind of products, you can shop online and the payment is

also made conveniently through your account. You can also buy railway and air tickets through Internet banking.

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2.5 Automated teller machine (ATM)

Automated Teller Machine is a mechanism which enables the customer to withdraw money from his account without visiting the bank branch. An ATM card is issued to the customer by the bank in order to make cash withdrawals at cash machine. This service helps the ATM customer to withdraw money even when the banks are closed. This can be done by inserting the card in the ATM and entering the Personal Identification Number & secret password. ATMs act as off-site branches of banks and provide almost all services that are available from a manually operated branch. The customer can, not only withdraw cash, but also deposit money, get account statements, enable transfer of funds etc. The customer who wants to deposit cash should put the notes in the pouch available at the ATM counter close it, seal it by signing & put it in the slot provided for this purpose. The bank staff will collect the packet when they come for loading cash in the machine & credit the amount to the account. However, the customer has to sign an undertaking with the bank that he would not dispute on the amount credited. ATM has gained prominence as a delivery channel for banking transactions in India. Now customers are not being charged any fee up to 5 transactions of cash withdrawals using ATM issued by other banks. This will in turn increase usage of ATMs in India. ATM allows customers: To view account information To deposit cheques or cash To order cheques and receive cash.

Benefits of ATM:
To the ATM Customer: 1) ATM customer can utilize any possible facility availed from the ATM e.g. balance enquiry, withdrawal, deposits, etc

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2) Anytime banking, 24 hours a day, 7 days a week has become a main service to the ATM customers who cannot manage to visit bank during banking hours 3) Convenience acts as a tremendous psychological benefit all the time 4) Cash withdrawal from any branch through ATM To the Bank: 1) Innovative, secure, competitive and presents the bank as technology driven in the banking sector market. 2) Reduces customer visits to the branch & thereby human intervention. 3) Inter-branch reconciliation is immediate thereby reducing chances of fraud. 4) It acts as a value added product to the bank so that the banks can attract more new generation customers.

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CHAPTER-3 VARIOUS PRODUCTS & SERVICES OF BANKS

3.1 Deposits:
Banks provide various deposit schemes for keeping the savings of people. Some of these schemes are common in nature. Banks have to comply with the Know Your Customer (KYC) norms introduced by the Reserve Bank of India while opening & allowing operations in the accounts. A few deposit schemes offered by banks are as follows:

CHART 4: Types of deposits

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3.2 Credit cards:

Credit cards are innovative ones in the line of financial services offered by commercial banks. Credit card culture is a old hat in the western countries. In India, it is relatively a new concept that is fast catching on. Since the plastic money has today become as good as legal tender more people are using them in their day-to-day activities. A credit card is a card or mechanism which enables cardholders to purchase goods, travel and dine in a hotel without making immediate payments. It is a convenience of extended credit without formality. Credit cards can be classified as follows:

CHART 5: Types of credit cards

OLD CREDIT CARDS

NEW CREDIT CARDS

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3.3 Loans
It is an arrangement by which a bank advance loans against any security like jewels, shares or debentures or insurance policy or personal security of the borrower. The interest is payable on the entire loan amount as decided by the bank. Loans can be classified as follows:

CHART 6: Various types of loans

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3.4 Investment
Investment is the employment of funds with the aim of getting return on it. It is the commitment of funds which have been saved from current consumption with the hope that some benefits will receive in future. Thus, it is a reward for waiting for money. Savings of the people are invested in assets depending on their risk and return. Investment avenues are the outlets of funds. In India, investment alternatives are continuously increasing along with new developments in the financial market. An investor can himself select the best avenue after studying the merits and demerits of different avenues. Even financial advertising newspapers supplements on financial

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matters and investment journals offer guidance to investors in the selection of suitable investment avenues.

CHART 7: Alternatives avenues for investment

1)

Public Provident Fund (PPF): Public Provident Fund is one attractive tax sheltered investment scheme for middle class

and salaried persons. It is even useful to businessmen and higher income earning people. The PPF scheme is very popular among the marginal income tax payers. Features of PPF scheme The PPF scheme is for a period of 15 years but can be extended at the desire of the depositor The depositor is expected to make a minimum deposit of Rs 100 every year The PPF account is not transferable, but nomination facility is available
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 Tax exemption on investment is made. A compound interest at 8% per annum is paid 2) Government of India Savings Bond: The GOI has recently started issuing 6.50% bonds which are reasonably attractive and secured investment for individuals and institutions. Features of Savings Bonds Interest 6.50%. Interest is payable half yearly or cumulative. Interest payment is exempted from income tax. Maturity period of 5 years Cumulative facility available. Rs 1000 become Rs 1377 after 5 years. Nomination facility is available

3)

Real Estate Properties: Investment in the real estate is popular due to high saleable value after some years. Such

properties include buildings, commercial premises, industrial land, plantations, farmhouses, agricultural land etc. They purchase such properties at low prices and do not sale them unless there is substantial increase in the market price. The resale price will be attractive in due course when they can recover 4 times the price paid. This is one attractive as well as profitable avenue for investment. 4) Investment in Gold, Silver: In India, there is attraction for gold and silver since the early historical period. These two precious metals are used for making ornaments and also for investment of surplus funds over a long period. The prices of both the metals are continuously increasing. These metals are highly

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liquid, also provides a sense of security to the investors. The benefit of capital appreciation is also available. As a result, investment in gold and silver is one avenue for investment. 5) Bonds & Debentures: It is possible to purchase bonds and debentures of joint stock companies for investment purpose. Debenture indicates loan given to the company at a specific rate of interest. Debentures are more popular than shares due to the safety and security available, Easy transferability by endorsement and delivery, Investment exempted from wealth-tax, Maturity period from 5-25 years.

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CHAPTER- 4 INNOVATIVE FINANCIAL PRODUCTS AND SERVICES

4.1Merchant Banking 4.2Loan Syndication 4.3Leasing 4.4Mutual Funds 4.5Factoring

4.6 Forfeiting

4.7Venture Capital 4.8Reverse Mortgage 4.9New Products in Forex Market

New products have also emerged in the forex markets of developed countries. Some of these products are yet to make full entry in Indian markets. Among them, the following are the important ones: i. ii.
iii.

Forward Contracts: Options: Futures:.

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iv.

Swaps:

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CHAPTER 5 OVERVIEW OF DENA BANK

5.1

Introduction of Dena bank

5.1.1 History

It was the pre- independence era that Shri Pranlal Devkaran Nanjee established the first signs of Swadeshi movement by founding DEVKARAN NANJEE BANKING COMPANY LTD. on 26th May 1938, which was later re-christened as DENA BANK. It became a public ltd company in dec.1939 and later the name was changed to DENA BANK LTD. DENA BANK in July 1969 along with 13 other major banks was nationalized and is now a Public sector bank constituted under the banking companies Act, 1970. DENA BANK has continuously maintained its pioneer status in the banking industry. From deposit schemes to budged friendly loans to Insurance and Mutual Fund products, the bank has capitalized on all opportunities to provide its customers a unique banking experience and established itself as a financial supermarket.
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Milestones One among six Public Sector Banks selected by the World Bank for sanctioning a loan of Rs.72.3 crores for augmentation of Tier-II Capital under Financial Sector Developmental project in the year 1995.
One among the few Banks to receive the World Bank loan for technological up

gradation and training. Launched a Bond Issue of Rs.92.13 crores in November 1996. Maiden Public Issue of Rs.180 Crores in November 1996. Introduced Tele banking facility of selected metropolitan centers. Dena Bank has been the first Bank to introduce: Minor Savings Scheme. Credit card in rural India known as "DENA KRISHI SAKH PATRA" (DKSP).
Drive-in ATM counters of Juhu, Mumbai.

Smart card at selected branches in Mumbai. Customer rating system for rating the Bank Services.

5.1.2 Logo

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Logo of DENA BANK depicts goddess Laxmiji the goddess of wealth, according to Hindu mythology. It was the desire of the founding fathers of the bank that bank should be a symbol of prosperity for all its clients & the logo represents this promise. D in the logo reflects the dynamism, dedication and the drive towards customer satisfaction.

5.1.3 Mission
The mission of the DENA BANK towards different groups is given below. The DENA BANK will provide its Customers - premier financial services of great value, Staff - positive work environment and opportunity for growth and achievement, Shareholders - superior financial returns, Community - economic growth

5.1.4 Vision
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DENA BANK will emerge as the most preferred Bank of customer choice in its area of operations, by its reputation and performance.

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5.2

Products and services:

Dena bank provides different kinds of products and services to their customers.

They provide various deposit schemes and loans schemes to their customers. They are as follow.

5.2.1 Dena deposit schemes:

5.2.1.1 Premium Savings Account Scheme:

The Dena bank provides Premium Savings Account Scheme to their Customers. In this account they have to maintain minimum Rs. 25,000/- Quarterly. From this account Customer can get different benefits like, Free cheque book facility Free of commission Demand Drafts/ Pay Orders up to an aggregate amount of Rs. 10,000/- per month.

5.2.1.2 Premium Current Account Scheme

In this account the customer holder has to maintain minimum Rs. 5,000 at any point of time and maintain monthly average balance of Rs. 1, 00,000 per month.
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There are some advantages and disadvantages to the customer. It is given below:

Advantages: Free of commission Demand Drafts/Pay Orders up to an aggregate amount of Rs. 1.00 lac per month Free collection of outstation cheques up to Rs. 50000/- per month on the centre where have branches. If the account holder maintains more than Rs. 1.00,000 balance in his account then the concessions will be increased proportionately in multiples of Rs. 1.00,000. Disadvantage:

If the Minimum balance / Monthly average balance are not maintained, than

penalty will be charged.

5.2.1.3 Dena Jeevan SB Account:

"Dena Jeevan SB Account" provides the value addition of life insurance for Savings deposit account holders, who can now avail of life insurance cover through their account. The insurance cover is available under a One Year Renewable Term Insurance Plan of Life Insurance Corporation of India [LIC], for whom Dena Bank is a Corporate Agent. The Savings Deposit account holders of the Bank between 18 and 59 years of age, who opt to become members under the scheme, would be eligible for an insurance cover of Rs.1,00,000/( Rupees One lac only ) on life, at very low premium. The amount of annual premium depends on the age of the opted. The salient features of the scheme (which is a part of Savings Deposit Scheme) are given below:

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 Life covers of Rs. 1 lac. Life insurance covers up to 60 years of age. Very low premium. No medical tests required. A simple declaration of good health will suffice. Income Tax benefit is available. Effectively, the premium cost is lower. Nomination facility is available.

5.2.1.4 Dena Maha Tax Bachat Yojana:

A Deposit scheme to avail Income Tax benefit u/s 80c: Any Individual or a Hindu Undivided Family [HUF] can invest a minimum amount of Rs 100/- or multiples thereof, to avail Income tax benefit u/s 80C of the Income Tax Act subject to a maximum of Rs 1,00,000/- in a financial year.

Scheme Attraction: Investors can avail tax benefits while earning higher returns / Yield on their deposits as interest rate offered is higher than the normal Card Rate.

Interest Payment: Option available to receive interest either at the time of maturity with Quarterly Compounding [cumulative] OR at Monthly / Quarterly / Half-yearly / Yearly rests [non- cumulative].

Period of Deposit: Fixed maturity period of 5 years. Premature withdrawal is not permitted
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Deduction under section 80C: In case of joint holder type deposit, the deduction from income under section 80C of the Act shall be available only to the first holder of the deposit.

Nomination Facility: Available, except in the case of term deposit held by or on behalf of minor.

Permanent Account Number [PAN]: PAN is mandatory to invest in this

scheme.

5.2.1.5. Dena Super Premium Current Account :

Automatic transfer of balance from the Current Account in excess of Rs. 2,00,000/- to Fixed Deposit, in multiples of Rs. 25,000/- and Re-transfer of funds from the Fixed Deposit to Current Account in multiples of Rs. 25000/- when there is a need. Eligibility:

Existing/new customers who maintain the monthly average balance of Rs 2 lac & minimum balance of Rs. 5000/- for one full calendar month.

Maximum period of deposit: 90 days Rate of interest: Card rate will be applicable for units converted to term deposits if the aggregate amount of deposit so converted to Term deposit is less than Rs 1 crore per day. Bulk deposit rate on Term Deposits to be announced by the Treasury Department everyday would be applicable for units converted to Term deposits if the aggregate amount of deposit so converted to Term deposit is Rs 1 crore and above per day.

Monthly Average Balance: Rs. 2 Lac. Minimum Balance: Rs 5000/-

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Facilities Offered:

Free Demand Drafts/ Pay Orders up to an aggregate amount of Rs. 2 lac per month Free Debit card Free Bill Pay services available (at selected branches) If the Minimum balance / Monthly average balance is not maintained penalty will be charged.

5.2.1.6 Dena Fixed Deposit Scheme:

Dena Fixed Deposit Scheme allows you to choose the intervals of receiving your interest. You can choose yearly, half-yearly, quarterly or even monthly interest payments according to your needs of income.

Duration: The deposit is accepted under this scheme for any period from 7 days to 10 years. Your money is never idle and your receipt of your interest income can be planned according to your needs.

5.2.1.7 Dena Senior Citizen Scheme:

Dena Bank Senior Citizen's Scheme is open to individuals, who have completed 60 years of age. The account can be opened in the sole name of the individual (with nomination facility) and/or
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in joint name. In case where joint account holder is a person below the age of 60 Years, the name of Senior Citizen to be given as first name in the application form. The depositor can open Fixed Deposit (Dena Senior Citizen Fixed Deposit) account where monthly /quarterly/ half yearly/yearly interest would be paid. The period of such deposit will be minimum 15 Days to maximum 10 years. For cumulative deposit scheme, (Dena Senior Citizen Samruddhi Deposit) the period of deposit should be minimum 6 months to maximum 10 years. Proof of Age: At the time of opening of a new deposit account, Senior Citizens are required to provide any of the following documents as proof of age. Secondary School leaving Certificate indicating date of birth. LIC Policy. Voters Identity Card/ Ration Card. Pension Payment Order. Birth Certificate issued by the competent authority. Passport. Driving Licence. Superannuation / retirement certificate of Central/State Governments and Central/State Government Undertakings

Minimum Deposit Amount:

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Minimum amount of deposit should be Rs. 1,000/- per deposit receipt and in multiple of Rs.1000/- with no maximum deposit ceiling.

Rate of Interest: The scheme offers 0.50 % additional rate of interest over and above the normal rate of interest offered on Term Deposits.

Loan facility: Loan facility is given Up to 85% of deposit amount under this scheme.

5.2.1.8 Dena Minor Savings Scheme:

Dena Minor Savings Scheme is a product developed for children, it will inculcate saving habits in the minors and also it helps them in becoming responsible by allowing them to partially operate this account independently. Special savings scheme for minors. Minors who have attained 10 years of age and above, who can read & write, can open Minor Savings Scheme account in their own singly or jointly. No cheque book is issued to Minor Savings Account holder; however a minor is allowed to withdraw the money from his account by withdrawal slip.

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5.2.1.9 Dena Alpa Bachat Khata:

The main features of the Dena Alpa Bachat Khata are given below:

The account can be opened with a minimum initial deposit of Rs 10/- and thereafter the balance can go below Rs.10. The account can continue with even ZERO balance. No Debit or ATM Cards will be issued under the scheme. For standing instructions, NO CHARGES will be levied.
Cheque books will not be issued to the account holders. However, on a case to case

basis, a maximum of 6 Pay Orders/Demand Drafts (all taken together) can be issued in a year, each not exceeding Rs 2,500/- for which, our usual charges will be levied. Persons above the age of 10 and below 18, who years and able to read and write may open a Minor Savings account under the scheme in his own name or jointly with any other person. Collection of cheques is normally not encouraged in these accounts. However, on a case to case basis, a maximum of 6 instruments can be collected in a year, each not exceeding Rs 2,500/- for which, our usual charges will be levied. Third party cheques will not be collected in these accounts.

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5.2.1.10 Dena Cash Certificate:

Table 1: Name of the Product DENA CASH CERTIFICATE DCC MOULD YOUR FUTURE "YOU decide How much money you need on maturity." Who can purchase Cash Certificate can be purchased by any individual in her/his own name or jointly with other person/s, by a parent/guardian on behalf of a minor, proprietorship firms, Hindu Undivided Families, Partnership Firms, Limited companies, Clubs, Associations etc. Maturity Amount Tenor Rate of Interest Rs. 1000 and in multiple of thousand. 7 years from the date of investment. Card Rate (similar to the Domestic Term deposits for a period of 7 years and above). Initial Deposit Amount This will depend on maturity value selected and rate of interest applicable at the time of purchase. Premature withdrawal Loan / Overdraft facility TDS Available Available Wherever applicable, TDS will be deducted from maturity value. Nomination Available

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5.2.2 Dena Loans

5.2.2.1 Dena Niwas Housing Finance Scheme:

The doorway to your Dream Home

Person can take a Dena Niwas Home Loan to purchase a plot, construct a house, buy a ready built house or buy one under construction. Besides you can take this loan for repairs and up gradation, which includes the cost of fixtures, POP works, retiling, fittings etc. It even gives the option to shift an existing home loan with any other Bank or Financial Institution. Eligibility:

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You are a major individual, resident or non-resident, having a regular source of income. Your age on the maturity of the loan is less than retirement age if you are a salaried employee & below 65 years, if you have a business.

The total deductions do not exceed 60% of your gross income, including the loan instalment of the proposed loan.

Spouses/Co-applicants income can be clubbed for enhanced eligibility.

Loan Amount

Up to Rs.200 lakhs for the purchase/construction of a house. Up to Rs.10 lakhs for renovation/up gradation.

Repayment

Up to 20 years-for the purchase of a new flat/house/construction/extension. Up to 10 years- for repairs, renovation and up gradation.

Security

Simple equitable mortgage of the house/flat/apartment on which the loan is availed.

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5.2.2.2 Dena Vidya Laxmi Educational Loan Scheme:

This loan will ensure a bright future of children. Parents can provide best education in India or Abroad. This loan will provide loan for any graduation or Professional courses.

Eligibility:

Any individual with sufficient repayment capacity and student where either of the parents is a co borrower.

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5.2.2.3 Dena Suvidha (Personal Loan) Scheme:

Live your Dreams

Dena Suvidha is the ideal way to fulfill personal needs of family. Under this scheme the Dena Bank is provide finance for marriage or family function or travel or celebrates a festival or for medical treatment or educational purposes or simply a vacation. Even though an unforeseen event, Dena Suvidha (Personal) Loan is always there for all your needs.

Eligibility:

The person is a permanent employee between 24 to 55 years having worked for at least 2 years in a Govt. or PSU/ reputed organization.

The person has a gross monthly income of at least Rs. 15,000/-. Income of any other earning member (co-applicants) can be clubbed for enhanced eligibility.
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Person has a salary disbursement arrangement with us or provides an undertaking from their employer.

Loan Amount

Minimum- Rs. 15,000/Up to- Rs. 1 lakh or 9 times the net monthly income whichever is less.

Under this scheme an interest is charged on daily reducing balance method.

Repayment

up to 36 EMIs

5.2.2.4. Dena Auto Finance Scheme.

Eligibility:

Person has a gross income of more than Rs.75,000/- p.a. for loan for purchase of motor cycle / scooter and more than Rs.1.50 lacs p.a. for loan for purchase of cars.

Person is in a partnership firm / company for purchase of car. The firm / company should be profit making for the last 2 years. The net profit as per Audited Balance Sheet of last year should be more than Rs.3.00 lacs.

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Loan Amount

Up to Rs. 50,000/- for purchase of a new two wheeler. Up to Rs. 8 lakhs for purchase of a new car.

Under this scheme an interest is charged on daily reducing balance method.

Security

Hypothecation of the vehicle purchased.

Repayment

Up to 60 EMIs (For new vehicles) & up to 36 EMIs (For old Vehicles).

5.2.2.5 Dena Consumer Durable Loan

In the current era it's so easy to improve our lifestyles and turn our home into a smart, modern one with all the conveniences. Under this scheme a bank is provide a finance for a Laptop, Washing Machine, Microwave, Fridge, TV, DVD Player, Music System, AC, Modern Furniture, Cooking Range, PC, Fitness Equipment or even a Mobile Handset. Just take a Dena Consumer Durable Loan and move up in life.

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Eligibility:

Person has a sufficient repayment capacity. Also, his/her spouse's income can be clubbed to enhance his/her eligibility.

Loan Amount

Up to Rs. 1 lakh

Under this scheme an interest is charged on daily reducing balance method.

Repayment

Up to 36 EMIs.

Security

Hypothecation of consumer durables purchased.

5.2.2.6 Dena Trade Finance Scheme:

Under this scheme a bank is provide finance to the stake holder of the different companies.

Eligibility:

Person is a commodity trader, stockist or dealer registered under sales tax. Person is a permanent resident of the city (If not permanent resident, property offered as collateral security is in his name and located at the same location).
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Loan Amount

Minimum- Rs. 2.50 lakhs up to- Rs. 200 lakhs CC Limit up to 20 % of projected turnover. Non-fund based limits up to 25% of eligible limit on the basis of projected turnover Term Loan up to 20% of working capital eligibility

Nature of Limit

Cash Credit (hypothecation), Term Loan (Secured), Non-fund based limits (Bank Guarantee & LC)

Under this scheme an interest is charged on daily reducing balance method.

Security

CC limit : Hypothecation of Stock and Book Debts Term Loans : Hypothecation of security created out of term loan Equitable mortgage of immovable property or any other liquid assets (other than equity shares, debentures) with minimum realisable market value of 100% of sanctioned limit as collateral

Repayment

CC limit / Non-fund based limit : To be reviewed on yearly basis

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Term Loan : 5 years (maximum)

5.2.2.7 Dena Mortgage Loan Scheme

Make your idle property work for you

If person has free hold, un-encumbered, non-agricultural property, residential or commercial- he can fulfil all his needs with Dena Mortgage Loan. Be it to finance a marriage, higher education, a foreign trip or medical treatment.

Eligibility:

Person is a 21 years of age. Person is a salaried individual, professional, self-employed, agriculturist. Person is an income tax assesse for at least 2 years. His net monthly income is at least Rs. 12,000/-. Income of spouse (co-applicant) can be clubbed for enhanced eligibility.

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Loan Amount

Minimum- Rs. 2 lakhs Up to- Rs. 300 lakhs

Under this scheme an interest is charged on daily reducing balance method.

Security Equal to mortgage property

Repayment Up to 84 EMIs
Prepayment Charges

5.2.2.8 Dena Senior Citizen Pensioners Loan Scheme:

Eligibility:

Person is a pensioner of the State Govt., Central Govt. or PSU. Person is an ex-staff member with a pension account. Loan recovery period is not extending beyond 75 years of age. His take home pension is not less than 60% of his monthly pension after deduction of the loan instalment.

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Loan Amount

Up to 6 months pension or rs.50, 000/-, whichever is less.

Under this scheme an interest is charged on daily reducing balance method.

Security

NIL

Repayment

Up to 24 EMIs

Guarantee

Simple! Spouse or nominee appointed for the pension account or any other family member or third party acceptable to the bank can guarantee the account.

5.2.2.9 Dena Rent Scheme (Finance against Rent receivables) :

Good news for Landlords

Under this scheme landlords can make their property earn more money by availing Dena Rent Scheme against their rent receivable.

Eligibility:

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Person is a landlord- an individual, corporate, trust or anybody who has given their property on rent to banks, FIs, PSUs or reputed companies.

Loan Amount

Minimum- Rs. 1 lakh Up to- Rs. 500 lakhs

Under this scheme an interest is charged on daily reducing balance method.

Security

Equitable mortgage of property.

Repayment

Up to 120 EMIs or residual lease period whichever is less

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5.2.3 International banking services:

Dena Bank offers wide range of International Banking Services. They have more than 1130 branches spread over the country. Trade Finance Services of Dena Bank includes various products to facilitate our international business. They have 37 Authorized Dealing Branches to handle import/ export business. They offer all kind of deposit accounts and remittance facilities to NRI customers. They have special NRI Cells at select branches to cater to all requirements of NRIs / PIOs (Persons of Indian Origin) less than one roof.

5.2.3.1 Trade Finance Services

5.2.3.1.1 Export Services: Dena Bank offers wide range of services both at pre-shipment and post-shipment stage to exporters to help them realize business opportunities world over. They offer both Pre-shipment and Post-shipment credit in Rupee denominated terms as well as in Foreign Currency to exporters having firm export orders or confirmed Letters of Credit.

Pre Shipment Export Credit (Packing Credit) Dena Bank offers Pre-shipment Credit (Packing Credit) to the exporter for

financing procuring, processing, manufacturing or packing the goods for export. Packing Credit is granted for a period depending upon the circumstances of the individual case, such as the time required for procuring, manufacturing or processing (where necessary) and shipping the relative goods. Packing Credit is liquidated out of the proceeds of the Bill drawn for the exported commodities, once the bill is purchased/ discounted etc. there by converting pre-shipment credit into post-shipment credit.
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Packing Credit in Foreign Currency (PCFC) With a view to making credit available to exporters at internationally competitive rates, Dena Bank extends Pre-shipment Credit in Foreign Currency (PCFC) to exporters for domestic and imported inputs of exported goods at LIBOR/EURO LIBOR/ EURIBOR linked rates of interest. PCFC is available in major foreign currencies i.e. USD, EURO and YEN. Exporters can cover the cost of both domestic as well as imported inputs by these funds. PCFC can be liquidated out of proceeds of export documents on their submission for discounting/rediscounting under the EBR Scheme. Subject to mutual agreement between the exporter and the banker it can also be repaid / prepaid out of balances in EEFC A/c as also from rupee resources of the exporter to the extent exports have actually taken place.

Post Shipment Export Credit Dena Bank offers Post-Shipment Credit to exporters after shipment of goods till the

date of realization of export proceeds and includes any loan / advance granted on the security of any duty drawback allowed by the Govt. from time to time. The exporter has the option to avail of pre-shipment and post-shipment credit either in rupee or in foreign currency. . The exporter can avail the following advances at post-shipment stage:
i. ii. iii.

To get export bills purchased /discounted / negotiated; To get advances against bills for collection; To receive advances against duty drawback receivable from Govt.

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5.2.3.1.2. Import Services

Dena Bank provides various types of fund based and non-fund based services to the importers for facilitating the imports in the country. All the facilities are subject to the prevalent rules of the Bank / RBI guidelines. Our Fund based services include Rupee and Foreign Currency loans, External Commercial Borrowing facilitation etc. and Non-Fund based services include establishment of Letter of Credit, collection/ payment of import bill and issuance of various guarantees on behalf of importers.

Letter of Credit Dena Bank offers L/C facility for the purchase of goods in the international market.

With the Letter of Credit, importers can build up better trust/ confidence in their suppliers and develop other business relationship at a much faster pace. The L/C facility can be granted to the importers after assessing their requirement / credit worthiness / financial strength and other parameters being to the satisfaction of the Bank. We help importers drafting the terms of Letter of Credit so as to protect their interest. The bank's vast network of branches and correspondent banks enables your enterprise to sustain a seamless flow of business on a wide platform.

Collection of Import Bills Dena Bank is providing a Collection of Import Bills facility for importer and

exporter. The import bills are collected through the Dena Banks Authorized Branches at very competitive rates. Dena Bank has correspondent banking relationship with reputed
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International Banks throughout the world and affects remittances for imports payment in any part of the world.

Bank Guarantees Dena Bank is issues guarantees in favour of beneficiaries abroad on behalf of

importers/ other customers. The Guarantees can be both Performance and Financial. The issuance of guarantee is allowed for the purposes defined under FEMA subject to availability of your credit limits or cash margin.

Fund based Services Dena Bank is providing Fund Based Services to the trader for their import. They

assist to import desired goods by providing Rupee loans and Foreign Currency Loans. They facilitate buyers credit for traders imports for the period specified under FEMA. They also assist to their customers in raising foreign currency funds through External Commercial Borrowing (ECB) for expansion/ modernization of existing facilities and/ or import of capital goods etc.

5.2.3.1.3 Correspondent Banking:

Dena Bank has correspondent banking relationship with over 500 international banks. Dena Bank assures its customers of best services in every part of the world. Dena Banks correspondent banking services include
I. Global remittances in foreign currencies through DD/ TT/ SWIFT towards import payment

and/ or other purposes permitted under FEMA.

II. Timely collection of bills both documentary and clean.

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III. Advising/ Confirmation of Letter of Credit issued by us.

5.2.3.1.4 Nostro Accounts

Nostro Accounts are maintained by an Indian Bank with overseas banks in foreign currency to settle its foreign currency transactions. Dena Bank maintains 19 Nostro accounts with internationally reputed banks in 9 major currencies i.e. US Dollar, Pound Sterling, Euro, Japanese Yen, Singapore Dollar, Swiss Frank, Hong Kong Dollar, Canadian Dollar and Australian Dollar. With the help of Nostro accounts, affect remittances in foreign currency and payment/settlement of other cross currency transactions.

5.2.3.2 NRI Services:

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Dena Bank has 1130 branches spread across the country. Dena Bank is our ideal banking partner if we are a Non-Resident Indian. There are different schemes are provided by the Dena Bank for a benefits of the NRI. Different scheme of the Dena Bank is given below:

5.2.3.2.1 NRI deposit products: NON-RESIDENT (EXTERNAL) RUPEE ACCOUNT SCHEME [NR (E) RA]

This account is maintained in Indian Rupees. Amount held and interest is freely repatriable in any convertible currency. Salient features: Account can be maintained in any form as a Saving, Current, Recurring and Term Deposit account. Term Deposits in Dena Bank can be maintained for 1 Year to 3 Years. No income tax on interest earned. Balances held in the account are free from Wealth tax/Gift tax. Nomination facility is available. Joint account with NRIs is permitted. Loans against deposits are permitted. Resident can operate the account under Letter of Authority or Power of Attorney. Conversion of foreign currency is done at market rate for full amount.

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FOREIGN CURRENCY NON-RESIDENT ACCOUNTS (BANKS) SCHEME

(FCNR-B) This account is maintained in foreign currency and thus provides full cover against fluctuations in foreign exchange rates. Salient features: The amount held is repatriable. It can be opened in Dena Bank in five currencies viz. US Dollars, Pound Sterling, Euro, Australian Dollar, and Canadian Dollar. The interest earned in this account is not subject to Income Tax and amount held is exempted from Gift tax/ Wealth tax. This is maintained as a term deposit for not less than 1 year and not exceeding 5 years. Nomination facility is available. Joint account with NRIs is permitted. A loan against deposit is permitted. A loan to depositor in foreign currency is permitted. Resident can operate the account under Letter of Authority or Power of Attorney.

NON-RESIDENT ORDINARY RUPEE ACCOUNT SCHEME (NRO) This account is maintained in Indian Rupees and normally operated for crediting rupee

earnings/income such as dividend, interest etc in India.

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Salient features:

This is maintained as Saving, Current, Term Deposits and Recurring Deposits. Nomination facility is available. The interest earned on this account is taxable under Indian Income Tax. Repatriation allowed up to USD 1 million, per calendar year subject to payment of applicable taxes.

Nomination facility is available. Joint account with NRIs and Residents is permitted. A loan in India is permitted. This can be used for local disbursements and local receipts can be credited to this account.

Resident can operate the account under Letter of Authority or Power of Attorney.

5.2.3.2.2 Loan and Overdrafts: Loan / Overdraft against NRE / FCNR/NRO Deposits can be availed of up to 85% to 90% of the deposits for purpose other than investments in India subject to the maximum ceiling as per RBI guidelines. The loan cannot be used for the purpose of re-lending, carrying on agriculture/plantation activities or for investment in real estate business. Loans against NRE fixed deposits can however be utilized for investments in India on non-repatriation basis in certain specified areas and for acquisition of flats/houses subject to prescribed conditions.

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Loans availed as above cannot be repatriated and as such cannot be credited to NRE/FCNR account. If desired, the loan proceeds can be credited to Non-resident Ordinary (NRO) account.

Repayment of the loan and the payment of interest accrued thereon shall be made either by fresh remittances from abroad or out of maturity proceeds of the borrowers NRE / FCNR fixed deposits against which the loan was granted or from funds held in NRO accounts. In case of repayment from local rupee resources, interest will be at commercial rate of interest.

Loans can be availed with our correspondents banks abroad (on arrangement) against the NRE / FCNR deposit receipt issued by us.

Loans to residents against the security of NRE / FCNR deposits can be granted subject to prior permission of RBI.

The maximum ceiling of the loan is as per the RBI guidelines.

5.2.3.2.4 Other facilities: RESIDENT returning Indians) FOREIGN CURRENCY ACCOUNTS (Facility to

Returning Indians can also benefit from our Deposit schemes. They can open and maintain a Resident Foreign Currency account (RFC) to transfer balances held in NRE/FCNR accounts. Proceeds of assets held outside India at the time of return, can be credited to RFC account. The funds held in RFC accounts are free from all restrictions regarding utilization of foreign currency balances including any restriction on investment in any form outside India. Salient features: Operates in three currencies VIZ. U.S. Dollar, Sterling Pound, and Euro.

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Operates in the form of Saving, Current, Term Deposits.

Rate of Interest:

Term Deposits: As applicable to FCNR (B) Deposit Scheme. Saving: 0.50% per annum for deposits in USD and EURO. Current: Nil

Returning Indians may continue to hold, own, transfer or invest in foreign currency, foreign security or any immovable property situated outside India, if such currency, security or property was acquired, held or owned when resident outside India.

INVESTMENTS ON REPATRIATION BASIS:

Shares and convertible debentures under portfolio investment. Government dated securities (other than bearer securities) or treasury bills. Units of domestic mutual funds. Bonds issued by PSUs in India. Shares in public sector enterprises being disinvested by the government of India.

INVESTMENTS ON NON-REPATRIATION BASIS:

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Units of money market mutual funds in India. Exchange traded derivative contracts (ETDC) approved by SEBI.

INVESTMENTS IN IMMOVABLE PROPERTY

May

acquire

any

immovable

property

in

India

other

than

agricultural/plantation/farm house out of the funds received in India by way of inward remittances or from the funds held in NRI accounts. May repatriate sale proceeds of property other than agriculture/plantation property or a farmhouse provided it should not exceed the amount paid for acquisition of the immovable property in foreign exchange. In the case of residential property, the repatriation of sale proceeds is restricted to not more than two such properties. NRIs / PIOs can remit out of balances in NRO account including sale proceeds of immovable property provided the amount does not exceed USD 1 million per financial year.

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5.2.4 Corporate Specific Scheme:

5.2.4.1 Corporate Finance

Dena Bank provides financial assistance to the business entities engaged in various activities of manufacturing, trading and service. The Financial assistance is provided for setting up new projects, acquiring assets and also for meeting day to day working capital requirements of the constituents. These assistances are termed as Long Term Finance & Short Term Finance respectively.

Term Finance
Term Loan/Finance covers funds required for acquiring means of production such as land, building and plant and machinery etc. These could be for setting up new projects or expanding the present activities. Term finance is generally given for a longer period and is repayable in instalments over the period with or without Moratorium. The period and the instalments are determined based on the repayment capacity of the project / borrower.

Working Capital Finance

Working Capital Finance (WCF) is extended for carrying out normal trading/ manufacturing activities. The working capital finance is provided for a relatively shorter period generally for a period of 1 year and renewed on yearly basis considering the performance of the borrower. The WCF is considered only after project nearing completion and after full tie up of term loan requirement.
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The Working Capital limits of the borrower are assessed by adopting various methods such as Projected Turnover Method (Nayak Committee Recommendation), Permissible Bank Finance Method, Cash Budget Method etc. depending upon the aggregate working capital limit required / enjoyed from the banking system, nature of activity, production cycle etc. Working Capital finance is in the form of pre-sale and post-sale limits. In Pre-Sale Finance the advance is granted for acquiring Inventory for production / processing or trading purpose while the Post-Sale Finance is extended against the receivables. Dena Bank encourages Post-sale finance in the form of purchase/discounting of bills etc

5.2.4.2 Educational Institutions:

Table 2: Scheme for Educational Institutions Scope of Scheme Educational institutions cover various activities like Schools, Colleges, Professional Institutions & Research and Development Institutions etc. Finance is extended to only private professional of

colleges/institutions imparting education

in the field

Engineering, Medicines and Business Management. Constitution/ Eligible borrower Trust/Corporate Bodies promoted by well qualified experienced persons in the relative field as well as reputed persons in the society provided a) Borrower should have necessary permission required if any, from competent authorities like Education Department of the respective State. b) Loans are granted for expansion/ modernization of existing established and reputed institutions. Quantum of assistance Up to Rs.10 Crores
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Debt Equity Ratio Debt Service Coverage Ratio Promoters contribution Period of loan Collaterals

Long Term Debt Equity Ratio Maximum 3:1 1.75 and above Not less than 25% of the estimated cost of project Maximum 5 years inclusive of moratorium period As per banks policy from time to time

5.2.4.3 Builders & Developers:

Table 3: Scheme for financing Builders & Developers For constructing residential complexes and residential cum commercial complexes only

Scope of Scheme Constitution/ Eligible borrower

Corporate Entity Approval from NBCC/HUDCO in cases where

borrower undertakes their project work.

The

borrower

should

have

technical

competence/employed professionally qualified persons.

The borrower should engage reputed firms of

Architects.

The promoters should have proven track record and

have successfully completed minimum 3 projects.

Only fresh proposal with exclusive banking. Minimum 20% of the project cost should be initially

borne by the borrower and disbursement linked with the work

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in progress.

Finance is provided to private builders for meeting the

resources gap, on commercial consideration. Quantum of assistance Project Cost Debt Equity Ratio Promoters Contribution Up to Rs.50 Crores Total Debt Equity Ratio Maximum 3:1, Long Term Debt Equity Ratio Maximum 1.5:1 The contribution of core promoters by way of equity capital should be minimum 33% Period of Loan Collateral Security Generally Maximum 36 months As per banks policy from time to time

5.2.4.4 Hospitals:
Table 4: Scheme for Financing Hospitals Scope of Scheme Private speciality hospitals providing surgical facilities in the area of heart, kidney, Orthopedic etc. Constitution/ Eligible borrower Quantum of assistance Debt Equity Ratio Preferably a corporate entity Promoters to be well qualified and experienced doctors Requisite permission from the appropriate authority

Up to Rs.5 Crores Total Debt Equity Ratio Maximum 3:1, Long Term Debt Equity Ratio Maximum 2:1

Promoters contribution Collateral Security

Minimum 33% As per banks policy from time to time

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5.2.4.5 Hotels & Restaurants:

Table 5: Scheme for Financing Hotels & Restaurants

Scope of Scheme Constitution/Eligible borrowers Quantum of assistance Debt Equity Ratio

Hotels at tourist places and restaurants providing quality food at tourist places, metropolitan and urban centres only. Corporate only Approval from Department of Tourism or star classification Up to Rs.50 Crores Long Term Debt Equity Ratio Maximum 1.5:1 Total Debt Equity Ratio Maximum 3:1

Promoters contribution Period of Loan Collateral Security

Minimum 33.33% Maximum 7 years As per banks policy from time to time

5.2.4.6 Entertainment Industry:

Table 6: Scheme for Financing Film Industry Scope of Scheme Constitution/ Eligible borrower Quantum of assistance Debt Equity Ratio Financing production of feature films, as defined under the Cinematograph (Certification) Rules, 1983. Corporate entity promoted by reputed producers, backed by established directors and other technicians possessing satisfactory track record. Normally, not exceeding 40% of the estimated cost of the film or Rs.5000 lacs whichever is lower. Long Term Debt equity ratio not to exceed 1:1

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 Promoters contribution

Not less than 33% of the estimated cost of the film A part of the equity contribution (not exceeding 20% of

the estimated cost of the film) may be raised in the form of advances from distributors, against sale of territories, music/video rights etc. Normally not exceeding two years Bank shall reserve the right of sharing upside of a film, in a manner to be decided on case to case basis. Letter from film processing laboratory, conveying rights on the negatives of the film in favour of Bank Assignment of all agreements and intellectual property rights (IPRs) in favour Bank. Bank to have right in negotiation of valuation of all IPRs. A Trust and Retention Account (TRA) will be maintained for all capital as well as revenue inflows and outflows. The

Period of Loan Profit sharing

Security

receivables on sale of all IPRs shall be credited to TRA. The modalities of TRA will be worked out to the satisfaction of Bank. NOC from all concerned parties for the TRA arrangement will be required. Bank will have first charge on the TRA.

First hypothecation charge on all the tangible movable Assignment of existing rights like music, video, internet,

assets under the project. Insurance Cover Collaterals CD, DVD rights, library or old hit films etc. The film would require to be comprehensively insured As per banks policy from time to time.

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5.2.5 Other Services;

Dena Bank, your trusted family bank, now is proud to offer a range of sophisticated banking services by way of Any-branch banking, Multi City cheque, Dena ATM's, Dena Cards, online remittance, Internet Banking, Mobile banking, Tele banking, Online utility Bill Payment, Value added Service through ATM, Kiosks and many more.

5.2.5.1 Dena ATM Services:

Dena Bank Debit cum ATM Card offers you an easy and convenient way to do all your transactions and that too within a fraction of seconds. Dena Bank is offers a four types of the cards. The different types of cards are: 1. Dena ATM Card 2. Dena Insta Card (Un-named Debit Card) 3. Dena Debit cum ATM Card (Named Debit Card) 4. Dena International Gold Debit Card

Customer can perform following types of transactions:1. Cash withdrawal 2. Cash / Cheque deposit 3. Balance Enquiry 4. Mini statement 5. Fund Transfer
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6. Prepaid Mobile Recharge

7. Post-paid Mobile Payment

8. Verified by VISA transactions

Table 7: The transaction limits for various types of cards is given below:
Purchase at Merchant Establishments Not Applicable

Type of Card

Cash Withdrawal Up to Rs. 20,000/- per day Up to Rs. 20,000/- per day Up to Rs. 20,000/- per day

Fund Transfer Up to Rs. 1,00,000/- per day Up to Rs. 1,00,000/- per day Up to Rs. 1,00,000/- per day

Dena ATM Card

Dena Insta Card Dena Debit cum ATM Card

Up to Rs. 25000/- per day

Up to Rs. 25000/- per day

Dena International Up to Rs. 50,000/- per Up to Rs. 1,50,000/- per Up to Rs. 1,00,000/- per Gold Debit Card day day day

5.2.5.2 DenaiConnect Banking:

DenaiConnect Internet Banking service is a convenient, secure online banking service provided by Dena bank for the customers of its Core Banking (CBS) branches.

With DenaiConnect Internet banking you can access all your banking accounts with the bank 24x 7x 365 anywhere in the world.

A host of features like Balance Enquiry, Mini Statement, Statement of Accounts, Cheque based Inquiry, Funds Transfer, Tax Payments to name a few out of many.
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Internet Banking is available to all customers of Core Banking (CBS) branches. The customers could be: Savings Account holders Current Account holders Cash Credit Account holders Overdraft Account holders

Guideline

It is recommended that customer should avoid using PCs with public access like cyber caf for Internet banking.

Clear your browser's cache and history after each session so that your account information is removed, especially if you are using a shared computer.

Configure the browser to not remember passwords (Disable Auto Complete Disable the "AutoComplete" function in Internet Explorer. Steps for Auto Complete: 1. Open Internet Explorer and click on "Tools">> "Internet Options">> "Content" 2. Under "Personal Information", click on "AutoComplete". 3. Uncheck "User names and passwords on forms" and click on "Clear Passwords". 4. Click "OK"
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The customer should keep his/her ID and password strictly confidential and should not divulge the same to any other person.

It may not be safe to leave the computer unattended during a valid session, as the session will be disconnected. This might give access to your account information to others.

Don't double click any option/button while logged in Internet Banking. Use only single click for all operations .This is done to provide you more security over internet.

DenaiConnect-Internet Banking password is both personal and confidential. We advise you not to reveal your password to anyone, including Dena Bank personnel.

Change your Password regularly (once in 15 days). Memorize your password and then destroy the Pin-Mailer. Do not write down your password or store it anywhere. Avoid using it when others can observe you

While entering your Internet Banking ID and Password, please ensure that others cannot see your screen and also you are not being observed from behind

Change password immediately if you suspect that it has been revealed Log off from DenaiConnect after you complete your transactions.

5.2.5.3 Dena e-Tax Pay:

There are some steps for making the E-payment of Excise & Service tax which should be followed by the Tax payers. The steps are given below: 1. Visit the Dena Bank website i.e. www.denabank.com. 2. Select the Link for E-Payment of Indirect taxes. The transaction will be redirected to NSDL web site 3. A page to enter Tax details in the NSDL web site is displayed.
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4. Here, enter their Assesses code and the Accounting sub codes. 5. Select the Bank name as Dena Bank. Then click on Submit button. 6. On this the data is validated and a Confirmation Data page is displayed. 7. Verify the data in the confirmation page and click on 'Submit to the Bank' button. 8. Transaction will redirect to Dena Bank Internet Banking application for Excise & Service tax. 9. Then, enter the Internet Banking user id and sign on password. 10. If the id is authenticated, then the tax details data entered in NSDL web site will be fetched by the Dena Bank application. The Amount details must be entered by the taxpayer. Click on 'Pay' button. 11. Enter the Internet Banking user id and Transaction password for authentication. 12. On authentication, the tax amount will be debited from the customer account. A message 'Tax Payment successful' is displayed on the Top and a customer counterfoil is generated which can be printed or Saved for record. 13. If your customer counterfoil is misplaced, you can contact the Nodal branch for a duplicate copy. The contact details are as follows:

5.2.5.4 Phone Banking:

Phone banking system is the interactive voice response system (IVR System). The customer needs to dial the toll free number 18002336427 to avail this facility. The phone banking application will prompt the customer to enter the customer id and the "login password" and based on the option selected by the customer the phone banking system will service the request of the customer. In case the customer wants to do financial transaction, he will be required to enter transaction password also.

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The features of the Phone Banking are given below:

1. 2. 3.

Balance Enquiry of All Accounts Mini Statement (5 transactions) Statement of accounts by Email (for any period during last 3 months preceding

from current date)

4. 5. 6. 7. 8. 9.

Statement of accounts by Fax (last 9 transactions ) Cheque Status (paid / unpaid) Stop payment of cheque. Inquiry about Debit Card Transaction Fund Transfer (Self A/cs. Within the Bank) Fund Transfer (Third Party A/cs. Within the Bank)

5.2.5.5 Dena Alert Services:

"Alerts" are messages that are sent to the customer in form of SMS on occurrence of events.

Process for Registration Customers who have provided the mobile number at the time of opening of the account would receive alerts on occurrence of certain events.

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In case the customer has not provided the mobile number or the mobile number that is provided earlier has been changed, then the customer has to provide the details in the format as prescribed in Registration Form.

Process for withdrawing the facility In case the customer doesnt want this facility, the customer can submit an application to the branch for de-registering the facility that is granted to the customer. The application should necessary contain the details given below: 1. Customer ID: 2 Name of the customer: 3. Mobile Number: 4. Reasons for withdrawal of facility.

5.2.5.6 Dena Bill Pay:

It is an extremely convenient service that enables you to pay various bills like electricity, telephone, mobile, insurance, gas etc. Directly from customers Dena bank account without the need for cash, cheques or standing in long queues. Customer need to register for Dena Bill Pay by providing bank account number and bill details. Bank will receive copy of bill and make the payment from the specified bank account.

5.2.5.7 RTGS / NEFT:

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DENA - RTGS / NEFT SYSTEM SCHEME FOR DOMESTIC INTER-BANK CUSTOMER FUNDS TRANSFER/ REMITTANCE SYSTEM.

Credit to Beneficiary's Account on the Same Day Safest and Secure Mode of Fund Transfer Lower Remittance Charges No Courier/Postal expenses as in the case of Demand Draft etc. Money can be put to use by beneficiary on the same day Through RTGS and NEFT Dena Banks customers can also receive remittances from their customers / associates maintaining accounts with other Banks. i.e., instead of receiving payments by way of cheque / pay orders / demand drafts etc., can receive funds through RTGS and NEFT system.

Eligibility: Customers of Dena Banks RTGS and NEFT enabled branches can send remittances under DENA RTGS / NEFT Scheme to any destination Bank / Branch that are registered with RBIs RTGS / NEFT system. Amount of remittance: RTGS:

Minimum amount of remittance under Customer Transaction through RTGS is Rs. 2 Lakh. NEFT:

Any amount whole in Rupees (without minimum / maximum limits) can be remitted.
85

Credit to beneficiarys account: Credit to the Beneficiary Account will be given by Beneficiarys Banks Branch on the same day and in case of holiday / after business hours, credit will be given on next business date.

5.2.5.8 Distribution of Mutual Funds:

Dena Bank is committed to providing a wide range of financial services to the customers. In pursuance of this commitment, the Bank has tied up with the following Mutual Funds for distribution of their mutual fund products through selected branches across the country:

1. UTI Mutual Fund. 2. ICICI Prudential Mutual Fund 3. LIC Mutual Fund 4. Franklin Templeton Investments 5. HDFC Mutual Fund 6. ING Vysya Mutual Fund 7. Reliance Mutual Fund 8. Kotak Mutual Fund 9. Birla Sunlife Mutual Fund 10. Tata Mutual Fund 11. SBI Mutual Fund 12. Fidelity Mutual Fund 13. DSP Blackrock Mutual Fund
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14. Shinsei Mutual Fund

5.2.5.9 Demat Services:

Dena Bank apart from normal banking services also offers you the capital market oriented product in the form of Demat account called -Dena Laxmi Demat Account. Dena Bank is Depository participant of National Securities Depository Limited (NSDL).since 1997 and is extending Depository services to the Demat Account holders of the Bank. Dena Bank provides hassle free transactions in the securities through the Dena Laxmi Demat Account.

Who can open a Dena Laxmi Demat Account? 1) A Resident Individual 2) HUF 3) Non Resident Indian (NRI) 4) Body Corporate 5) Registered societies 6) Registered Trust 7) Clearing houses 8) Financial Institutions 9) Mutual funds and 10) Clearing Members of Stock Exchanges There are some Functions and Facilities of Dena Laxmi Demat Account is given below:

Opening and maintaining of Demat Accounts

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Dematerialisation (Converting Physical security into Electronic form) Instant transfers / deliveries of shares / securities Settlement of transactions done on the Stock Exchanges Affecting changes in Addresses / Bank account details for the investments in various companies with a single request

Nomination facility available Pledging of Security ----- the securities will remain in the account of the pledger but will only be blocked in favour of the pledgee.

Freezing and unfreezing of account / only specific security or a specific quantity of a particular security

SMS alert facility for the transactions in the account Statement of account by E-mail. View Holding / transaction in the Account on Internet.

There are a list of the documents required for Opening the Dena Laxmi Demat Account are given below: (If Account opened in Joint names documents required for all the joint holders) 1. Copy of Pan Card 2. Proof of Identity 3. Proof of Address
4. Proof of Bank Account ( copy of Bank account pass Book / statement )

5. Photograph/s
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6. Nomination mandate Yes or No. If yes Photograph and signature of the nominee 7. Photograph of Guardian if nominee is minors

CHAPTER 6: VARIOUS INTEREST RATES OF DIFFERENT SCHEMES

6.1

Deposits Rates
:

6.1.1 Domestic Rates:

Table 8: The interest rates on domestic term deposits w.e.f. 16.05.2011 will be as under:MATURITY PERIOD 07 DAYS TO 14 DAYS @ For Deposits up to & including Rs. 15 lakhs 1.00 For Deposits above Rs. 15 Lakhs but less than Rs.1 Crore 1.00
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15 DAYS TO 29 DAYS 30 DAYS TO 45 DAYS 46 DAYS TO 60 DAYS 61 DAYS TO 90 DAYS 91 DAYS TO 120 DAYS 121 DAYS TO 179 DAYS 180 DAYS TO 270 DAYS 271 DAYS TO 364 DAYS 365 DAYS 366 DAYS TO LESS THAN 2 YEARS 2 YEARS TO LESS THAN 3 YEARS 3 YEARS TO LESS THAN 5 YEARS 5 YEARS TO LESS THAN 8 YEARS 8 YEARS & UP TO 10 YEARS

3.50 5.00 5.50 5.50 6.50 7.00 8.00 8.00 9.00 9.25 9.25 9.25 8.75 8.75

3.50 5.00 5.50 5.50 6.50 7.00 8.00 8.00 9.00 9.25 9.25 9.25 8.75 8.75

Minimum size of deposit per receipt must be rs.1 lakh through a single deposit receipt. The deposit above Rs. 15 lakh must be through a single deposit receipt. All rates are subject to change from time to time.

6.1.2 N R E
(A) Interest Rates on NRE (Rupee) Savings Bank Deposits - 4.00% P.A. (B) Interest Rates on NRE (Rupee) Term Deposits Table 9:
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INTEREST RATES ON NRE (RUPEE) TERM DEPOSITS with effect from 01/06/2011 ( Interest in % term ) 1 year & above but less than 2 years 2 years & above but less than 3 years For 3 years (Maximum) 2.48 2.46 2.87

6.1.3 FCNR
Table 10:

Interrest rates on FCNR(B) / RFC Term Deposit w.e.f. June 1, 2011 Maturity Period USD 1 year & above but less than 2 years 2 years & above but less than 3 years 3 years & above but less than 4 years 4 years & above but less than 5 years For 5 years (Maximum) 1.73 1.71 2.12 2.57 2.98 ( Interest in % term ) GBP 2.59 2.56 2.91 3.26 3.59 EUR 3.11 3.18 3.41 3.62 3.81 CAD 2.91 2.72 3.00 3.25 3.46 AUD 6.67 6.17 6.21 6.42 6.52

6.1.4 NRO
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(A) Interest Rate on NRO Savings Bank Deposit - 4.00% P.A.

(B) Interest Rates on NRO Term Deposits Same as Domestic Deposits NOTE: Benefit of additional interest to Senior Citizen is not applicable to any type of Non-resident deposits.

6.2 Lending Rates:

RETAIL BANKING DEPARTMENT Interest rates applicable on various Retail Lending Schemes are given below. Presently Base Rate is 9.5%. (w.e.f. 06.05.11) as under Table 11: Sr no 1 2 3 4 Schemes Dena Suvidha Dena Consumer Durables Finance Dena Senior Citizen Pensioners Dena Auto Finance Repayable up to 3 years New Cars : 12.50% New 2 wheeler s: 13.00%
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R O I w.e.f. 06/05/2011 16% (Fixed) 15.75% 15.25%

Repayable > 3 yrs Old Vehicles (Max. 3 years) 5 Dena Vidyalaxmi Education Loan UPTO Rs. 4.00 Lacs Repayable up to 3 years Repayable > 3 yrs Above Rs. 4.00 Lacs Repayable up to 3 years Repayable > 3 yrs Concession available for Students availing loan above Rs 4.00 lacs ** ** 1% concession in case of all IIM / IIT / ISB student ** 2% concession for all Girl Student of IIM / IIT / ISB 6 Dena Trade Finance : CC. Hyp. TL Repayable upto 3 years TL Repayable in more than 3 years 7 DENA RENT Where Dena Bank is Tenant : Repayable upto 3 years Repayable in > 3 yrs Where Dena Bank is not Tenant : Repayable in > 3 years

New cars : 13.00% New 2 wheelers : 13.50% 15.00%

13.00% 13.50%

13.50% 14.00%

13.50% 13.50% 14.00%

14.75% 15.00%

15.25%
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Repayable upto 3 years

15.50%

Dena Mortgage : Repayable in > 3 years Repayable upto 3 year Overdraft 14.75% 15.25% 15.75%

Dena Niwas Housing Finance : Floating Rate of Interest Limit up to Rs.20 lakhs Repayable up to 5 years Repayable in > 5 years & up to 10 years Repayable in > 10 years 10.45% 10.65% 10.90%

Limit > Rs.20 lakhs Repayable up sto 5 years

Limit > Rs.20 lakhs

1) Up to Rs.1.00 crore. 11.15%

2) Above Rs.1.00 cr. & up to Rs.2.00 crores. : 11.25% 3) More than Rs.2.00 crs : 11.50% 1) Up to Rs.1.00 cr. : 11.25% Repayable in > 5 years & up to 10 years 2) Above Rs.1.00 cr. & up to Rs.2.00 crores : 11.50% 3) Above Rs.2.00 crs. : 11.75% Repayable in > 10 years 1) Up to Rs.1.00 crore : 11.50% 2) Above Rs 1.00 cr. & up to Rs.2.00
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crs : 11.75% 3) More than Rs.2.00 crs. : 12.00%

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Chapter 7:
Description of live experience:The office of DENA BANK is blessed by brilliant and skilled professionals and team leader who have the responsibility of handling the Financial Corporate Consultants. The team leader provides the particular days plan of action and then guide show to go about for executing the plan of action successfully .Till the time a Financial Corporate Consultant is in the office he receives the valuable suggestions and insights of the team leader. This prepares him for the days Work and provides him the necessary directions to achieve not only the target of the day but the target of the month. In the office the Financial Corporate consultant make calls continuously to fix the follow-up appointments so that on the basis of the financial health check collected by him and also getting the follow-up appointments from the telesales she goes in the field for making up the appointments. The financial corporate consultants provide the persons met the basics of why he should take a particular ACCOUNT to provide to him.

7.1 Statement of research problem:PROBLEM DEFINATION:

Sales Executives were skilled, having good qualification and selected through rigorous process of recruitment but still not able to perform up to the expectation level of company. HR is not able to sort out the problem why the performance is not coming even after giving the full marketing support. The communication technique and dealing with the customers is also a problem to the sales executives.

7.2 OBJECTIVES OF RESEARCH PROJECT: RESEARCH OBJECTIVES:

To find out the customer preferences while opening Savings A/c. To study brand image of the bank. To increase the business of the bank.
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7.3 Research Design and Methodology Primary data source: All the people from different profession were personally visited and
interviewed. They were the main source of Primary data. The method of collection of primary data was direct personal interview through a structured questionnaire.

Secondary Data Source: It was collected from internal sources. The secondary data was
collected on the basis of organizational file, official records, newspapers, magazines, management books, preserved information in the companys database and website of the company.

SAMPLING PLAN:
Since it is not possible to study whole universe, it becomes necessary to take sample from the universe to know about its characteristics.

Sampling Units: Customers Sample Technique: Random Sampling. Research Instrument: Structured Questionnaire. Contact Method: Personal Interview. SAMPLE SIZE:
My sample size for this project was 100 respondents. Since it was not possible to cover the whole universe in the available time period, it was necessary for me to take a sample size of 100 respondents.

7.4 RESEARCH LIMITATIONS:

It was not possible to understand thoroughly about the different marketing aspects of the Financial Consultant within 60 days. As stipend money was not given it was difficult to continue the project work. All the work was limited in some limited areas of Bhavnagar so the findings should not be
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generalized. The time given for survey was 10 days and it is a very small period given to reach out everywhere.

All the findings and conclusions obtained are based on the survey done in the working area within the time limit. I tried to select the sample representative of the whole group during my job training. I have collected data from people linked with different profession at Bhavnagar.

7.5Data Analysis
Q 1:What is your Monthly Transaction in your savigs account ? Monthly transactions Upto 25000 Rs 25000-50000 Rs Above 50000 Rs Total
Chart:

No. of respondents 28 59 13 100

% (percentage) 28% 59% 13% 100%

Analysis:

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59% respondents gave their answer in 20-40 lakhs transactions.

28% respondents gave their answer in 0-20 lakhs transactions. 13% respondents gave their answer in 40 lakhs and above transactions.

Question 2

Do you have a savings Account?

Response Yes No No. of respondents 97 3 % 97% 3%

Chart 2:

3%

97%

Yes

No

Analysis: 97% respondents have the savings accounts and only 3% do not have savings account

Question 3 In Which Bank?

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Bank DENA BANK Co-operative Private Bank Nationalized

No. respondents 33 31 15 48

of

% 26% 24% 12% 38%

Chart 3

Analysis: 24% have savings account in co-operative, 26% in DENA BANK, 12% in Private bank, and 38% in nationalized bank.

Question 4

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Which Factors do you consider for opening a Savings Account?

No. of respondents Accessibility Minimum balance DD/pay order Free cheque Debit card Cash deposit Cheque pick up Net banking Mobile banking At per cheque NEFT RTGS Total 10 20 13 10 8 7 2 16 7 3 2 2 100 % 10 20 13 10 8 7 2 16 7 3 2 2 100

Chart 4

101

102

Question 5

Which mode of transaction do you avail of frequently?

Response Pay order DD Cheque Total No. of response 12 22 76 100 % 11% 20% 69% 100

Chart 5

Analysis: 11% Response in pay order, 20% like DD, and 69 % costumer want from cheque mode.

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Question 6 Which types of transaction do you make ?

Response Intercity Outside city Both Total No. of respondents 33 15 52 100 % 33 15 52 100

Chart 6

Inter city 33% , Both 52% ,

City

, 15%

Analysis: 33% account holder transaction intercity, 52 % Both, and 15% outside city. Question 7
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Outsid e

Does your bank assist you in case of any problem?

Response Yes No Total No. of respondents 90 10 100 % 90 10 100

Chart 7

10%

90%

Yes

No

Analysis: 90% say yes bank will assist you in case of any problem, only 10% say no.

7.6 Summary of Findings

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The final draft of the questionnaire was prepared on the basis of the observations from the pilot study. These were then finally filled by 100 customer, for the conclusive study. Finally the data collected was fed into the data analysis to be analyzed using statistical techniques.

Types of Primary Data collected:

Socioeconomic Characteristics:
Characteristics are sometimes called states of being, in that they represent the type of people. The factors on which we are working are occupation. Monthly transaction is also an important parameter but it is difficult to verify. Although the amount of money that business unit earns in a month is an absolute, not a relative quantity, but it is a sensitive topic in our society and it is difficult to determine.

Attitudes/Opinions:
Through the questionnaire we have tried to get hold of business preference, inclination and requirement. Attitude is an important notion in the marketing literature, since it is generally thought that the attitudes are related to the behavior of businessmen.

Motivation:
Through the questionnaire we have tried to find the hidden need or want of businessmen and have tried to find if these people can be tapped as the potential customer for DENA BANK.

Behavior:
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Behavior concerns what subjects have done or are doing. Through the questionnaire we have tried to find out the behavior of the individuals regarding the product and their responses. If the responses are favorable then the person can be said to be our potential customer. The primary data serves as an important tool to measure the behavioral trend of the customer. It helps in answering some of the vital Questions.

Obtaining the Primary Data:

The data collection was primarily done through communication. Communication involves questioning respondents to secure the desired information, using a data collection instrument called questionnaire. The questions were in writing and so were the responses.

Versatility:
It is the ability of a technique to collect the information on the many types of primary data of interest to marketers. It has also been found that some of the people do not answer truthfully to all the questions especially in the case of the personal details

7.7Summary of Learning Experience

Almost all the Banks offer similar features and facilities with their bank accounts. There are certain reasons for existing customers of Account of any Bank to shift to another Bank. The level of service in terms of delivering whatever is promised and fast response in case of problems is the most important benefit that the customers seek from the bank they have a Saving Account with.

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Network reach and visibility of a Bank is a very important criterion for the customer while opening a Saving Account. We can also conclude from our analysis that network reach in terms of Branches and ATMs is directly proportional to the market share in case of Private Players. In case of a new customer, if a bank approaches it first for opening a Saving Account with them, then there is a good chance for the bank of getting many future businesses and cross sales from the deal. Aggressive Marketing is the key to increasing the market share in this area, since the market has a lot of potential both in terms of untapped market.

7.8Conclusions and Recommendations

1. Contract Sales Executive (CSE) should be trained to explain the product features and its value added services to make customers product selection convenient.

2. Contract Sales Executive (CSE) should recommend right product to the right customer so as to ensure a high degree of satisfaction among the customer.

3. The bank needs to make people aware about there products and the basic benefits they can derive out of it. And also the differential features of its savings account as compared to other banks.70% of the people did not even know about the concept, benefits and features of its saving accounts.

4. The bank should also target small business unit for whom maintenance of the AQB is not a problem as this segment is not much penetrated.

5. Though the bank offers free doorstep banking once a day this fact is also not known to many customers or they still do not trust this service whatever the

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reason the bank can popularize this service to gain an edge over nationalized banks and Co-operative Banks.

6. Quality of service has been rated highly important by all demofigureic factors as a reason for banking with a particular bank, Standard Chartered needs to improve the services provided to its existing customers before attracting more in the future and use word of mouth as a promotional tool to increase the sales potential of its savings account.

7.9LIMITATIONS
Some of the limitations of the project are listed as below: 1. The time bound period is the major limitation in research projects. 2. Due to the financial and time constraints a cluster analysis of the population so as to get better results was not feasible. 3. The research conduct in Bangalore city only. 4. It was difficult to break the ice with the common people initially. It was a daunting task to convince them to fill in the personal details of the questionnaire where they have to mention the monthly income, occupation etc. 5. To convince the people for a proper interviewing process is also difficult. 6. Compilation of data on competitor analysis was difficult due to non-availability of correct information. 7. The figures have been taken as approximations.

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Chapter8: QUESTIONNAIRE

Name of respondent:

Contact No:

1) Monthly Transaction:

5-20lakhs

20-40 lakhs

40 lakhs or above

2) Do you have savings a/c?

Yes

No

3) If yes then you have account with which Bank? (Can Mark More Than 1) 110

ICICI

DENA BANK

Kotak Mahindra Bank

Nationalized

Other Bank:

Cooperative Bank:

4) Which factors do you consider for opening a Savings a/c? (Can Mark More Than 1)

Accessibility

Minimum Balance

DD/Pay Order

Free Cheque

Debit Card

Cash Deposit

Cheque Pick-Up

Net Banking

Mobile Banking

At Par Cheques

NEFT

RTGS

5) Which mode of transaction do you avail frequently? (Can Mark More Than 1)

Cheque

DD

Pay Order

6) Which type of transaction do you make?

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Intercity

Intracity

Both

7) Does your bank assist you in case of any problem?

Yes

No

8) What are the additional Benefits do you expect from a Saving Account?

Date:

Place:

Signature:

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CONCLUSION
After doing a detailed study about MARKETING OF FINANCIAL SERVICES PROVIDED BY DENA BANK at DENA BANK I was able to know different banking products and services. Till now I was not aware about different products and services provided by Dena bank. But during our 2 months summers training programme I came to know about different products and their procedure, I also came to know different basic banking operations of the bank. Dena Bank offers different types of accounts, different types of loans to the customers and their other services like ATM services, Deneiconnect services etc. provided by Dena bank. I understand functions of RTGS. In todays competitive and technological world RTGS is one of the main instrument which can help you in emergency transactions. Whatever thing I learned in this period from that I can conclude one thing that nationalized banks and private banks both provides various financial services but still huge part of population do not use banking facility optimally. Hence there is a huge demand for marketing administrator in the sector. Finally this training period has motivated me to stick to my decision regarding entering into marketing field in future and to give my best to marketing industry.

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BIBILIOGRAPHY
Reference taken from following websites for input:
www.google.com www.denabank.com www.wikipedia.org www.financialexpress.com www.rbi.com www.banknetindia.com

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