A STUDY ON FUNCTIONS OFA BANK BRANCH

SOUTH INDIAN BANK, MAIN BRANCH, THRISSUR, KERALA.

MAJOR PROJECT REPORT

Submitted in partial fulfillment

For the award of degree

MASTER OF BUSINESS ADMINISTRATION

Of

SRM UNIVERSITY, KATTANKOLOTHUR

By

VYSAK RAVINDRAN

REG.NO. 3510910929

Under the guidance of

Miss. PRIYA XAVIER

Assistant professor, Department Of Management Studies

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 CERTIFICATE

This is to certify that the summer project report entitled “Functions Of a

Bank Branch” of South Indian Bank., Main Branch, Thrissur, Kerala is a
bonafide record of the work done by Mr. Vysak Ravindran, MBA student of
this institute, in partial fulfillment of the requirements for the award of the
degree of Master Of Business Administration of SRM University

Project guide Dean

2
 DECLARATION

I Vysak Ravindran declare that the project report entitled “Functions

Of a Bank Branch” carried out by us under the supervision of Miss. Priya
Xavier, FACULTY, SCHOOL OF MANAGEMENT, SRM
UNIVERSITY; Kattankulathur is the result of the original work done by me.
This work has not been previously submitted by anyone else for the award of
any other degree or diploma in any other institute or university.

Place: Vysak Ravindran

Date: reg.No.3510910929

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 Acknowledgement

I feel that it is my duty to thank the people who helped me in my

venture, which made me, realize the fact that there is nothing better than a
little inspiration to get up and do something.

First of all I am very thankful to the God almighty for the blessing on
me for the completion of this project within the short period of time.

I offer my sincere thanks to Miss. Priya Xavier, SRM

UNIVERSITY Kattankulathur-603203 for giving us an opportunity to
undergo a summer project on “FUNCTIONS OF A BANK BRANCH” in
South Indian Bank.

I am extremely thankful to the management of South Indian Bank who

offered great support and guidance for the successful completion of my
project.

I express my gratitude to all other faculties in School of Management

for their valuable guidance, which helped me in preparing this report.

I am also thankful to my friends who were a moral support for me from

the very beginning of the project in all circumstances. Last but not the least; I
thank the Almighty for the successful completion of this project.

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 TABLE OF CONTENTS

CHAPTER NO TITLE PAGE NO

CHAPTER 1 INTRODUCTION 7

Introduction 8

Company Profile 9

Executive Summery 10
Objective of study 11
Scope Of Study 12

CHAPTER 2 THEORITICAL 13
BACKGROUND
Accounts & Deposits 14
Loans 16
Mutual Funds 33
Insurance 36
Money Transfers 43

Value Added Services 45

CHAPTER 3 INTEREST RATES 71

Domestic Deposits 72

Domestic Savings Account 73

NRE Deposits 74

FCNR(B) Deposits 74

RFC Deposits 75

CHAPTER 4 ACCOUNTS & RATIOS 76

Balance Sheet 77

Profit & Loss Account 78

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 Capital Structure 79

Dividend 79

Share Holdings 79

Ratios 80

Key Ratios 82

CHAPTER 5 SWOT ANALYSIS & 83

CONCLUSION

SWOT analysis 84

Valuation & Recommendations 85

Conclusion 86

CHATER 6 BIBILIOGRAPHY & 87

WEBLIOGRAPHY

Bibliography 88

Webliography 88

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 Chapter 1
INTRODUCTION

• INTRODUCTION OF THE STUDY

• COMPANY PROFILE
• EXECUTIVE SUMMERY
• OBJECTIVES OF STUDY
• SCOPE OF THE STUDY

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 INTRODUCTION OF THE STUDY

Bank Branch

A branch, banking center or financial center is a retail location where a bank,

credit union, or other financial institution (and by extension, brokerage firms) offers
a wide array of face-to-face and automated services to its customers.

Functions

Functions are mainly of two types:-

• Primary Functions
• Secondary Functions

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 COMPANY PROFILE-ABOUT SOUTH INDIAN BANK

South Indian Bank Ltd was established by a band of enterprising men at a time when
Swadeshi movement was gathering momentum. The Bank was established in Thrissur a
major town in the erstwhile State of Cochin. The objective behind9 establishment of the
Bank was to provide for the people a safe, efficient and service oriented repository of
savings of the community on one hand and to free the business community from the
clutches of greedy moneylenders on the other by providing need based credit at reasonable
rates of interest.

ICICI Bank Ltd, is the biggest shareholder of the South Indian Bank holding 11.25% of the
bank's equity.

South Indian Bank has several firsts to its credit

• FIRST among the private sector banks in Kerala to become a scheduled bank in
1946 under the RBI Act.
• FIRST bank in the private sector in India to open a Currency Chest on behalf of the
RBI in April 1992.
• FIRST private sector bank to open a NRI branch in November 1992.
• FIRST among the Kerala based banks to offer a Credit Card to customers in
November 1992.
• FIRST bank in the private sector to start an Industrial Finance Branch in March
1993.
• FIRST among the private sector banks in Kerala to open an "Overseas Branch" to
cater exclusively to the export and import business in June 1993..
• FIRST bank in Kerala to develop an in-house, a fully integrated branch automation
software in addition to the in-house partial automation solution operational since
1992.

Presently, South Indian Bank has a network of 450 branches and 45 Extension Counters
spread over 19 States/UT.

Head Office
South Indian Bank Ltd.
T.B Road,
Mission Quarters,
Thrissur 680 001
Telephone : 2420020, 2420058, 2420113 2429333 (Secretarial Dept)
Email: sib@vsnl.com
URL: www.southindianbank.com

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 EXECUTIVE SUMMERY

The project work entitled “Functioning of a Bank Branch” is aimed to

evaluate the effectiveness of different functions of a bank branch in various
forms. Utmost care has been taken at all levels of project work right from the
beginning till the analysis, findings and suggestion.

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 OBJECTIVES OF STUDY

Primary Objectives

To study about the Functions of a Bank Branch of South Indian

Bank(Main Branch), Thrissur.

Secondary objectives

To analyze the Balance sheets of the bank & compare them. The report
also includes all the possible Accounting Ratios that has been calculated on
the collected data.

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 SCOPE OF THE STUDY

The functions of commercial banks are divided into two categories:

i) Primary functions, and

ii) Secondary functions including agency functions.

Primary functions:

The primary functions of a commercial bank include:

a) Accepting deposits; and

b) Granting loans and advances;

ii) Secondary functions

Besides the primary functions of accepting deposits and lending money,

banks perform a number of other functions which are called secondary
functions. These are as follows –

a) Issuing letters of credit, traveler’s cheques, circular notes etc.

b) Undertaking safe custody of valuables, important documents, and
Securities by providing safe deposit vaults or lockers;
c) Providing customers with facilities of foreign exchange.
d) Transferring money from one place to another; and from one
branch to another branch of the bank.
e) Standing guarantee on behalf of its customers, for making
payments for purchase of goods, machinery, vehicles etc.
f) Collecting and supplying business information;
g) Issuing demand drafts and pay orders; and,

h) Providing reports on the credit worthiness of customers

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 Chapter 2

THEORETICAL BACKGROUND

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ACCOUNTS & DEPOSITS
In this we have mainly two types of accounts:

a. Savings Account

A Savings Account with us allows you to route all your personal financial
transactions in a secure and convenient way. With the power of technology
based value added services, you are never away from your Savings Account.
We have different types of Savings Accounts to suit your exact need.
Regular Savings - With normal cheque book facility

Privilege Savings - With complete anywhere banking

facility

Group Salary Savings Account - for every employee to meet the

expectations

Junior Savings - For the students above age

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SARAL Savings - No Frills Account – low minimum

balance

Youth Plus Savings - An exclusive SB Account for Youth

MAHILA Savings - An attractive Savings Bank account exclusively for

women

SB Invest - An exclusive account for Demat / Trading account holders

b. Term Deposits

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Now you can earn a higher income on your surplus funds by investing in a
deposit scheme of your choice. We provide security, trust and competitive rate
of interest. We also have schemes which combine good returns with easy
liquidity.

Salient features are,

• Nomination facility is available in respect of all deposit accounts

• Interest upto Rs.10000/- per annum is exempted from TDS
• Loans are available on deposit accounts up to 90% of deposit amount

Kalpakanidhi - Interest is compounded

quarterly

SIB Flexi Deposit - Automatic part closure to cover Savings Account

deficit

SIB Tax Gain 2006 - Eligible for tax exemption under Sec 80 C

Fast Cash Deposit - Short term deposits with part closure

option

Fixed Deposits - Interest is paid out quarterly/monthly

Recurring Deposit - Fixed Monthly installment deposit

scheme

80 Plus Deposits - (scheme closed on 31/03/2009)

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Loans
As time changes, needs change and so does the spending solutions available.
As a result, mindset has also changed. Nowadays, loans are an integral part of
personal finance. It makes sense in today’s financial scenario. At South Indian
Bank, they forsee every kind of need and offer various special packages as
given.

a. Personal Loan Scheme

Purpose
For meeting personal / family finance requirements including expenses
towards purchase of household articles/ white goods / electronic / computer
equipments, peripherals/ expenses for medical treatment / inland or foreign
leisure travel / inland or foreign business travel / travel abroad on employment
contract # etc.

(# For persons traveling abroad on employment contract - Certified copy of

international qualifying examination like CGFNS / IELTS, certified copy of
valid Passport; certified copy of Employment offer letter / Work permit,
certified copy of registration obtained by the recruitment agency etc to be
obtained)

The purpose of the loan should be indicated in the application form and
proposal.
Target group
there shall be two types of Personal Loans.
(i) For Individuals
(ii) Group Loans

(i) Individual Loans

(a)Individuals permanently employed in reputed companies / firms /

organizations / Govt.service having remaining period of service equal to the
repayment period.

(b) Practicing / employed Doctors - having professional Medical Degree

(c) Business men

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(d) Other categories having sufficient income /IT Return and who are capable
of remitting EMIs.

(e) NRIs

(ii) Group Loans to permanent employees of GOI and State Government ,

PSUs, Blue Chip companies and reputed institutions etc
Maximum quantum of loan
Maximum Rs. 3.00 lacs subject to the following :

Salaried persons : 15 times of the monthly net salary excluding the proposed
loan deductions subject to a maximum of Rs.3.00 lacs.

Persons engaged in business/profession and filing IT Returns: Equal to the

annual income declared as per the latest IT Return (without considering
capital gains) subject to a maximum of Rs.3.00 lacs.

Persons travelling abroad on employment contract: 75% of total expenses / 5

times of monthly salary whichever is lower as per contract terms subject to a
maximum loan of Rs. 3.00 lacs.

NRIs : 50% of the average annual remittance to their NRI account /spouse’s
domestic account (excluding bulk remittance) subject to a maximum loan of
Rs. 3.00 lacs.

Persons who do not come under the tax bracket and gives a declaration to that
effect : Equal to the annual income declared by the applicant supported by
appropriate documents to the satisfaction of the Branch Manager, subject to a
maximum loan of Rs.3.00 lac
Mode of disbursement
By credit to the SB/CD account of the borrower. In the case of NRIs, by credit
to NRO account only .
Security
Individual Loans

(i) (a) for doctors( as mentioned earlier) and (b) SB account holders whose
salary is credited to the account :Guaranty optional

(ii) For persons going abroad on employment Up to Rs. 1.00 lac – one
guarantor. Above Rs.1.00 lac – Property / acceptable collateral security for
125% of loan amount

17
(iii) For others- at least one guarantor having Net Worth not less than thrice
the loan amount.

(iv) Group Loans One permanent employee of the organization, who can be
principal debtor as well as co-obligant for one loan only.
Rate of interest
Fixed at BPLR + TP-1.25% (fixed) with floor rate of 13.25% per annum
Upfront fee
One-time upfront fee 0.50% of the loan amount
Repayment period
Maximum 48 months(EMIs). In the case of group loans, single monthly
payment covering the total monthly installments of all members of the group
to be obtained from the institution.

b. Vehicle Loans
Planning to buy a new car, commercial vehicles, or vehicles for agrarian
purposes! We offer loans for one and all. At minimal interest rates, and no
hidden charges, these are very attractive.

*All loans are subject to the discretion of the bank and subject to such
conditions as may be stipulated by the Bank. Interest rates are subject to
change without notice

Mobiloan Personal - For Private Registration Vehicle

Target Group :

(1) Salaried persons working in reputed companies/ firms/ organization having

remaining period of service more than the repayment period fixed (2)
Business men, professionals, large scale agriculturists etc.

Type of vehicle : Any private registration vehicle

Cost of vehicle : Shall include Basic cost + duties + taxes + octroi + one time
life tax + comprehensive insurance premium for the first year.

Margin : Depends on collateral security:

(a)10% margin with 100%collateral

(b) 15% margin with 50% collateral
(c) 25% margin without collateral

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Loan amount : For two wheelers , upper ceiling Rs.75,000/- No upper ceiling
for other categories. The total cost of the vehicle less the applicable margin
shall be the loan amount , subject to the borrowers income level and
repayment capacity.

Collateral Security : Please contact the nearby branch.

Rate of Interest :

up to Rs. 2.00 lacs : fixed rate at BPLR + TP - 1.75%

above Rs.2.00 lacs: fixed rate BPLR +TP - 2.25%

Repayment period : Maximum 60 months. Loan to be repaid by monthly

installments.

Upfront Fee : 0.50% of loan amount ( one-time)

Penal Interest : 2% for the defaulted amount for the defaulted period.

Pre-payment penalty : Nil

*All loans are granted at the discretion of the Bank and conditions as
stipulated by the Bank

Mobiloan Commercial - For Commercial Registration/Taxi Vehicle

Type of vehicle : Any commercial registration/ / taxi vehicle

Cost of vehicle : shall include basic cost + duties + taxes + octroi + one time
road tax + comprehensive Insurance premium for first year

Loan amount : No upper ceiling fixed. The costs mentioned in the above
column less the applicable margin shall be the loan amount , subject to the
borrowers income level and repayment capacity.

Collateral Security : Please contact the nearby branch

Margin :

25% of cost of vehicle if collateral cover is less than 50%

15% of cost of vehicle if collateral cover is 50% or above but not fully
covered
10% of cost of vehicle with full cover collateral .

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Priority Sector Status : Advances to Small Road and Water Transport
Operators (SRWTO) owning a fleet of vehicles not exceeding ten vehicles,
including the one proposed to be financed shall be included under Priority
Sector.

Rate of Interest :

Fixed rate @ BPLR + TP –1% irrespective of loan amount.

Repayment period : Maximum 60 months. Loan to be closed by Equated

Monthly Instalments.

Upfront Fee : 0.50% of loan amount ( one-time)

Penal interest : 2% for the defaulted amount for the defaulted period.

Pre-payment penalty : Nil

*All loans are subject to discretion of Bank and conditions as stipulated by the Bank

Mobiloan Agricultural - Vehicles For Agricultural Purposes

Target group : Agriculturists – individuals/ jointly with spouse/ Plantation

companies

Type of vehicle :
Tractor with or without accessories, two wheelers, goods autos, jeeps, pick-
up /delivery vans/ trucks etc for agricultural purposes.
Minimum land holding : Those having at least 1 acre of cultivated area .

Loan amount : Upper Ceiling Rs.10.00 lacs

Margin :

25% of cost of vehicle if collateral cover is less than 50%

15% of cost of vehicle if collateral cover is 50% or above but not fully
covered( Power- Regional Heads)

10% of cost of vehicle with full cover collateral

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Collateral Security : Please contact the nearby branch

Special conditions : For tractors- the borrower must own a trailer/ other
accessories or include the same as an item for purchase .

Rate of Interest :

upto.2.00 lacs : Fixed rate @ BPLR +TP –4%

Above 2.00 lacs : Fixed rate @ BPLR +TP –3%

Repayment period :
For tractors : Maximum 7 years
For other vehicles: Maximum 5 years .

Repayment can be by monthly / quarterly installments.

*All loans are granted at the discretion of the Bank and conditions as stipulated by the Bank

Home Loans

Home loans are of different types as follows:

For Resident Indians

Target Group : Individual or individual jointly with spouse (Group of

individuals not permitted)

Purpose of the loan:

a) Purchase of Flat or House
b) Construction of Flat for own use or House
c) Purchasing land & constructing a House #
d) For major repair, renovation, extension or improvement of flat or house.
e) Takeover of Housing loans from other banks & reputed housing finance
companies.
f) Reimbursement of investments already made by the borrower provided the

21
investment has taken place within one year.

Quantum of loan : Maximum Rs.1.00 crore;

For renovations/additions/major
repairs/ improvements etc. : Maximum Rs.10 lacs

Interest Rates

A.Domestic Upto & Upto & Above Rs.30.00 Above

& NRI including including lacs Rs.30.00
Housing Rs.30.00 lacs Rs.30.00 lacs
Loans lacs

Period Fixed rate Floating Fixed rate Floating

rate rate

5 years 100bps above BPLR + 100 bps above BPLR+TP

corresponding TP - corresponding – 4.50%
floating rate 5.00% floating rate with
with 2 year 2 year reset
reset clause. clause

>5 yrs 100 bps above BPLR + 100 bps above BPLR + TP
corresponding TP - 4.75 corresponding - 4.25%
floating rate with % floating rate with
2 year reset clause 2 year reset
clause

Primary security : Land and building under Equitable Mortgage

Minimum Margin:

(a) construction of new house/ purchase of land and construction of new house
/ purchase of ready built house/ flat : 25% of estimated cost

(b) 30% of cost for purchase of old house/ renovation of existing house

Repayment ( including holiday) : Minimum 5 years & Maximum 20 years

22
by Equated Monthly Instalments(EMIs).

Holiday / Moratorium for repayment

• Ready built house or flat : Max. 3 months

• New construction : Max. 12 months

Holiday period interest :

• Can be funded or
• Serviced at the option of the borrower as decided at the time of
sanction.

Upfront fee : one time upfront fee 0.50% of the loan amount .

Early Closing Fee :

If closed from own sources after 2 years: : Nil

If closed from own sources before 2 years: 1% of the prepaid amount.
If closed through take over by other banks: 2% of the pre-paid amount

Penal Interest : 2% of the defaulted amount for the defaulted period.

The scheme details are furnished in brief only. For more details please contact
any of the branches nearest to you.

*All loans are subject to the discretion of the bank and subject to such
conditions as may be stipulated by the Bank. Interest rates are subject to
change without notice

SIB-Shelter

Target Group : Individual or individual jointly with spouse (Group of

individuals not permitted)

Purpose of the loan:

a) Purchase of Flat or House
b) Construction of Flat for own use or House
c) Purchasing land & constructing a House #
d) For major repair, renovation, extension or improvement of flat or house.
e) Takeover of Housing loans from other banks & reputed housing finance
companies.
f) Reimbursement of investments already made by the borrower provided the

23
investment has taken place within one year.

Quantum of loan : Maximum Rs.1.00 crore;

For renovations/additions/major
repairs/ improvements etc. : Maximum Rs.10 lacs

Interest Rates

A.Domestic Upto & Upto & Above Rs.30.00 Above

& NRI including including lacs Rs.30.00
Housing Rs.30.00 lacs Rs.30.00 lacs
Loans lacs

Period Fixed rate Floating Fixed rate Floating

rate rate

5 years 100bps above BPLR + 100 bps above BPLR+TP

corresponding TP - corresponding – 4.50%
floating rate 5.00% floating rate with
with 2 year 2 year reset
reset clause. clause

>5 yrs 100 bps above BPLR + 100 bps above BPLR + TP
corresponding TP - 4.75 corresponding - 4.25%
floating rate with % floating rate with
2 year reset clause 2 year reset
clause

Primary security : Land and building under Equitable Mortgage

Minimum Margin:

(a) construction of new house/ purchase of land and construction of new house
/ purchase of ready built house/ flat : 25% of estimated cost

(b) 30% of cost for purchase of old house/ renovation of existing house

Repayment ( including holiday) : Minimum 5 years & Maximum 20 years

24
by Equated Monthly Installments(EMIs).

Holiday / Moratorium for repayment

• Ready built house or flat : Max. 3 months

• New construction : Max. 12 months

Holiday period interest :

• Can be funded or
• Serviced at the option of the borrower as decided at the time of
sanction.

Upfront fee : one time upfront fee 0.50% of the loan amount .

Early Closing Fee :

If closed from own sources after 2 years: : Nil

If closed from own sources before 2 years: 1% of the prepaid amount.
If closed through take over by other banks : 2% of the pre-paid amount

Penal Interest : 2% of the defaulted amount for the defaulted period.

The scheme details are furnished in brief only. For more details please contact
any of the branches nearest to you.

*All loans are subject to the discretion of the bank and subject to such
conditions as may be stipulated by the Bank. Interest rates are subject to
change without notice

For Non Resident Indians

Rate of interest and terms and conditions similar to that of domestic

home loans subject to the following exceptions :

1. Maximum Repayment Period : 10 years

2. Eligible loan amount : 50 times average monthly remittance made by the

borrower from abroad for credit to his / her NRE account with any bank in
India, for a minimum period of 12 months, excluding bulk remittances, if any.
If necessary , remittances made by the NRI directly to his / her spouse’s
domestic account (excluding bulk remittances) for the previous 12 months
also shall be taken into account to reckon the loan amount

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3. Minimum project cost : Rs.10 lacs

4. Property may be in the name of a NRI or jointly with another NRI /resident
spouse.

5. Margin should be brought in by way of foreign inward remittance through

normal banking channels or debit to NRE, FCNR, NRO account of the NRI.

6. Repayment of the loan shall be by way of foreign inward remittance

through normal banking channels, debit of NRE, FCNR, NRO or the rental
income from the house financed by us.

7. Close relatives of the borrowers in India as defined under Section 6 of the

Companies Act 1956 ( given below) also are permitted to repay the loans
through their bank accounts directly to the housing loan accounts of the NRIs

The list of relatives as defined in the section is given below.

a. Members of a Hindu undivided family

b. Husband and wife
c. Related to one another in the manner indicated below:
i) Father, ii) Mother (including step-mother), iii) Son (including step-son) iv)
Son's wife, v) Daughter (including step-daughter), vi) Father's father vii)
Father's mother, viii) Mother's mother, ix) Mother's father, x) Son's son, xi)
Son's son's wife, xii) Son's daughter, xiii) Son's daughter's husband, xiv)
Daughter's husband, xv) Daughter's son, xvi) Daughter's son's wife, xvii)
Daughter's daughter, xviii) Daughter's daughter's husband xix) Brother's wife,
xx) Brother (including step-brother), xxi) Sister (including step-sister),
xxii)Sister's husband.

8. As the employment abroad may not be considered as permanent especially

in gulf countries, comfort available from other sources of income in India may
also be taken into account while sanctioning the loan.

9. Once the NRI customer returns to India for permanent settlement as

declared by him/her, the repayment may be permitted from local sources also.

10. Copy of the employment contract, salary certificate / pay slip, current
work permit, copy of identity card, copy of stamped visa, relevant pages of
passport, name and full address of the employer / sponsor abroad, contact
number of the NRI applicant, name, address and contact phone number of a
close relative in India for local contacts etc. may be collected.

26
11. The number of housing loans ( both domestic and NRI) to a person can go
up to a maximum of two only , subject to eligibility. The total amount
sanctioned to an individual [ balance outstanding in the first housing loan plus
the new (second) housing loan ] should not exceed the individual branch
discretionary power for housing loans.

12. All branches can entertain NRI home loans (except service branches and
those specifically prohibited).

For Senior Citizens - Special scheme for pensioner

Target Group : Those who are drawing pension from State/ Central
Government / banks/ Insurance Companies / other reputed companies and
completed the age of 55 years.

Purpose : For construction of house in own plot / purchase of land and

construction of house / purchase of ready built house with plot / purchase of
flat / repairs and / or renovation of existing houses owned.

# fixed rate with reset clause after every 2 years.

Rate of Interest : 50 bps less than the rates applicable for general home loans.

Quantum of loan : Maximum quantum of loan limited to Rs. 25.00 lacs or 50

times of monthly pension drawn at the time of application, which ever is less,
subject to the condition that EMI should not exceed 50% of the monthly
pension .

Minimum Margin :

(a) construction of new house/ purchase of land and construction of new house
/ purchase of ready built house / flat : 25% of estimated cost

(b) 30% of cost for purchase of old house/ renovation of existing house

Pension account to be maintained with our bank or post-dated cheques for 12

EMIs (initially) drawn on the pension account with the concerned bank to be
submitted on the date of execution and thereafter every 12 months.

Guarantor : If spouse is alive he/she should join the documents.

Security :

27
(a) Prime : Residential property being financed
(b) Collateral : (any one among the following is mandatory)

1. Insurance policy ( whole life) for value of loan

or

2. Lien on bank’s own deposits for full value of loan

or

3. Combination of insurance policy / bank’s own deposit for equal value of

loan

Repayment period : Maximum repayment period 15 years including

repayment holiday or till the borrower attains the age of 75 years , which ever
is earlier, through Equated Monthly Instalments(EMIs) .

Holiday period interest : Can be funded or spot serviced

Upfront Fee : One-time upfront fee of 0.25% of the loan

amount .

Premature closure charges : NIL , provided the account runs with our bank
for a minimum period of one year after completion of disbursement .
Otherwise @1% of balance outstanding.

The scheme details are furnished in brief only. For more details please contact
any of the branches.
*All loans are subject to the discretion of the bank and subject to such conditions as may be stipulated by the Bank.
Interest rates are subject to change without notice

SIB- Shield

SIB introduces SIB-Shield, which can provide life insurance cover to you
while you avail our unique housing loan products. We have tied up with Kotak
Mahindra Old Mutual Life insurance Co. Ltd. (KLI) to provide the complete
security to your family in the event of any unforeseen event happening to your
life. In case of any of these happenings, insurance company will pay the
outstanding principal balance of your loan a/c as per the original schedule.

28
Features of SIB-Shield

• Cost of insurance cover is extremely competitive as it is a group

insurance policy for long term.
• No medical test required for most of the customers. Only a one page
DOGH (Declaration Of Good Health) form to be signed by the
customer.
• For life insurance cover more than DOGH limits, the borrower does not
have to bear the expenses for medical check up.
• Customized insurance cover: Ensures that the borrower pays only for
the cover that he/she needs to protect the loan outstanding (for reducing
covers).
• Peace of mind: Eliminates fear of any loan recovery/Asset repossession
on the unfortunate death of the borrower during the tenure of the loan.
• Hassle free single premium payment which will be funded by the
bank.
• In case of foreclosure, proportionate premium would be refunded.
• Liberal underwriting standards as against individual policies.
• Simplified claims procedure.

Claims procedure:

In the event of death, the legal heirs of the insured have to intimate the same
to the bank within one month. The claim form has to be duly filled and to be
submitted to the bank and the bank will then inform KLI about the claim
raised with the support of necessary documents. KLI may call for additional
information and documents required to satisfy itself as to the validity of a
claim.

Once documentation is completed at the end of KLI settlement will be done

within 15 days. The claim amount will be credited to the loan a/c of the
deceased borrower. Short amount if any in the loan a/c has to be paid to the
bank by the legal heirs/nominees. Similarly excess amount will be paid to the
legal heirs/nominees of the deceased.

Gold Loans
Gold! The name brings to mind images of wealth. At South Indian Bank, we
value this age old preferred investment option and offer you easy avenues for
quick finance against this invaluable asset.

a. Gold Power

29
To be operated as an overdraft account against pledge of 22 carrot gold
ornaments. Lending against gold / silver bullion is prohibited. There is
provision for release of the ornaments & re-deposit of the ornaments without
any restrictions.

Special features of the scheme

• Safety of the ornaments – Under custody of the Bank.

• Liquidity of the gold is ensured – by sanctioning an overdrafts under
pledge of ornaments.
• Availability of the ornaments for use at any time – there is provision for
release of the ornaments & re-deposit of the ornaments without any
restrictions.

Target group : Individuals, Partnership & Proprietary Firms.

Type of facility : Overdraft against pledge of 22 carrot gold ornaments

Loan limits : Minimum Rs.0.25 lac , Maximum Rs.100 lacs

Security : Pledge of 22 ct Gold Ornaments

Interest Rate : BPLR – 3.50% fixed with floor level of 12.00%

Rate per gram : as fixed by H.O from time to time

Processing fee : 0.20% on each renewal / enhancement

Penal interest : 2 % p.a

Period of sanction : 12 months; Can be renewed after paying interest.

Only 22 ct ornaments should be accepted for pledge . Borrower can operate

this account as their personal overdraft.

b. Gold Rush

Minimum amount of advance. : Rs.10, 000/-

Period of Advance: 12 months.

Cutoff date for redemption/auction: 13 months.

30
Rate of Interest : BPLR – 3.50% fixed with floor level of 12.00%.

Rate per gram of 22 ct.Gold Ornament: changes periodically.

Minimum Interest: Minimum for 5 days or Rs. 50/- whichever is higher.

Handling Charges: 0.25%

EDUCATIONAL LOANS
Moulding a generation with good education has always been one of our
priorities. Education lays the foundation for creating a new future for a
youngster, and thereby to secure his life. To this end, we have customised
educational loans to suit any need. Be it for further education overseas or to
pursue couses within the country, South Indian Bank offers them all.

Vitjnan Pradhan Scheme - students desirous of pursuing professional

courses

SIB-Excellence - for students seeking admission to premier educational

institutions such as IITs, IIMs etc

Vidyanidhi Scheme - exclusive for students securing admission in

Professional colleges in Kerala

Agricultural Loans:
At South Indian Bank, we have always believed that agriculture is one of the
mainstays of Indian economy and that if the farmers are given the right kind of
support at times when they most need it, the sector can excel. Our agriculture
loans are tailored to meet farmer's needs.

31
Agriflex - For any agricultural / allied activity

Flexi loan

Flexiloans can be extended to residents and non-residents. Flexiloans can be

extended only in the form of Term Loans.

The quantum of loan will be based on the annual income and repayment
capacity of the borrower, security offered etc, unlike the case of project /
industry loans, where finance is granted on the strength of the project / activity
chosen.

Target Group : High Net worth individuals ( single/joint)

Purpose of the loan : Purpose of the loan should be specified in the

application form and sanction order . Purpose should not be for hoarding,
speculation or activity restricted by GOI or State Governments or local bodies.

In the case of NRIs, loan shall not be granted for the purpose of investment in
non- banking business or in Agriculture or Plantation or Real Estate business
or construction of Farm House or for trading in Transferable Development
Rights (TDRs). Branches to obtain an undertaking also to this effect from the
NRI borrowers.

Quantum of loan: Minimum: Rs.2.50 lacs

Maximum:

• against prime urban property - Rs.50.00 lacs

• against non-urban residential property : Rs.30.00 lacs

32
Loans above Rs.50.00 lacs will not be considered under Flexiloan Scheme

The annual repayment obligation shall not exceed 75% of the total an annual
income from all sources for business people. For salaried class, annual
repayment obligation shall not exceed 60% of the annual income.

Value of security : Prime urban property (residential/non-residential) or Non-

urban residential property : value at least 200% of the loan amount.

Rate of Interest : (fixed rate) BPLR + TP –0.50% (floor 13.50%) .

Upfront Fee : one-time Upfront fee 0.50% of the loan amount irrespective of
the quantum of loan .
Mode of disbursement : by credit to the borrowers SB/CD/NRO account

Repayment Period : Minimum 6 months; Maximum 60 Months through

EMIs. If the loan is to be closed before 6 months, interest applicable for full 6
months to be collected. For loans with maturity period up to 12 months bullet
repayment can be fixed.

Penal Interest : 2% p.a. for the defaulted amount for the defaulted period.

Other terms & conditions : a) In the case of married persons, spouse also
should join the documents.

Other Loans

Today's financial market demands create unique needs. We are always on the
forefront to help our customers to achieve their financial goals. We have loan
products tailormade for specific purposes.
SIB fortune - Loan For Subscribing To IPO/Public Issue Of A Company

Rental Loan Scheme - Loan Against Rent Receivables

Mutual Funds

33
One of the preferred investment options for all those who want to play safe,
yet save more than what traditional saving avenues offer.

South Indian Bank has tied-up with the leading Mutual Funds, so that you may
pick and choose, as per your investment goals.

o LIC Mutual Fund

o ICICI Prudential AMC
o Franklin Templeton
o TATA Mutual Fund
o Sundaram BNP Paribas
o UTI Mutual Funds
o Reliance Mutual Funds
o HSBC Investments
o HDFC Mutual Fund
o Fidelity Fund Management Pvt.Ltd.
o Principal Mutual Funds
o Fortis Investments
o Birla Sun Life Asset Management Company Ltd.
o DSP BlackRock Mutual Funds

Mutual Fund in general:

A mutual fund is a pool of money from numerous investors who wish to save
or make money just like you.

Investing in a mutual fund can be a lot easier than buying and selling
individual stocks and bonds on your own. Funds are kept in units of Rs.10. An
investor can redeem their holdings partially or fully at any point of time and
collect the proceedings on t +2 basis.

Investment Objectives

There are many different types of mutual funds, each with its own set of goals.
The investment objective is the goal that the fund manager sets for the mutual
fund when deciding which stocks and bonds should be in the fund's portfolio.

34
For example, an objective of a growth stock fund might be: This fund invests
primarily in the equity markets with the objective of providing long-term
capital appreciation towards meeting your long-term financial needs such as
retirement or a child’s education.

Mutual Funds are of two types-Open Ended and Close Ended

Open-End Funds

An open-end fund is one that is available for subscription all through the year
and is not listed on t e stock exchanges. The majority of mutual funds are
open-end funds. Investors have the flexibility to buy or sell any part of their
investment at any time at a price linked to the fund's Net Asset Value.

Closed-End Funds

A closed-end fund has a fixed number of shares outstanding and operates for a
fixed duration (generally ranging from 3 to 15 years). The fund would be open
for subscription only during a specified period like New Fund Offer. Closed-
end funds generally are listed on the stock exchange so it is traded just like
other stocks on an exchange or over the counter. Usually the redemption is
also specified which means that theyterminate on specified dates when the
investors can redeem their units.

Tax Benefits

Investments in ELSS (Equity Linked Savings Scheme) upto Rs.1 lakh are
eligible for tax exemption as perSec.80C. Dividends from equity funds are tax
free. Long term capital gains are free from capital gain tax.

35
Risk factor

Stocks historically have outperformed other asset classes over the long term,
but tend to fluctuate in value more drastically over the short term. The risks
are more discussed in each fund’s prospectus.

SIP -Systematic Investment Plan

A Systematic Investment Plan (SIP) is a disciplined way of investing, where

you make regular investments according to a set calendar you create.
Systematic investing, also known as rupee-cost averaging, can help you to put
the power of compounding on your side. Systematic investing is a time-tested
discipline that makes it easy to invest automatically.

In investment, the best ideas are often the simplest. Investing regularly in
small amounts can often lead to better results than investing in a lump sum.

SIP mode is available for all Mutual Fund Products

INSURANCE

At every point of life risks are many. Coverage for life and property are
always advisable to ensure protection. South Indian Bank brings the most
beneficial policies from insurance majors. Whether for households or for
businesses, they bring all kinds of policies.

a. Life Insurance
The South Indian Bank Ltd. has entered into a tie up with the Giant in the
Life Insurance Sector - LIC of India for soliciting Life Insurance policies for
our customers. LIC is the only insurance company whose policy proceeds are
guaranteed by the Government. Through this tie up, the banking expertise of
The South Indian Bank Ltd. and the Risk Management expertise of LIC of

36
India will be combined to provide excellent life cover policies and investment
option to our customers. All the products of LIC will now be available through
our branches. It opens up a reliable and trustworthy investment avenue,
making SIB a one stop shop for all financial requirement.

b. Health Insurance
Good Health Plan:

Hospitalization expenses / medical treatment have now increased

considerably. Once you are sick and hospitalized, then you have no other
choice, but to avail the best health services, spending your hard earned
savings. Realizing this eventuality, we now offer an excellent health insurance
product from M/s. Cholamandalam M S General Insurance Company. This
product is available to our SB / CD customers, including NRIs (for expenses
incurred in hospitals in India) exclusively through the South Indian Bank
branches. A five member family (self, spouse and 3 children) can avail a
family floater policy for Rs. 2 lakh, just for an annual premium of Rs. 5,000/-
(inclusive of Service Tax). Cashless hospitalization facility is also available in
over 2300 hospitals across India.

Disclaimer:
"The South Indian Bank Limited (SIB)" at any time is not liable issuing
insurance certificate and settle claims as per the terms and conditions of
policy. It is the sole responsibility of the M/s. Cholamandalam M S General
Insurance Co. Ltd. who had insured the borrower accepting the insurance
premium. You may please complete all the procedures prescribed by the
insurance company for timely settlement of the claims if any

c. General Insurance

South Indian Bank has business with M/s. Bajaj Allianz General Insurance
Company Limited , a joint venture between Bajaj Auto Ltd., India's leading 2
& 3 wheeler manufacturer and Allianz AG, the world's largest general
Insurance company.

37
As a Corporate Agent , South Indian Bank has already started distributing
various general insurance products to the customers through its own branches.

General Insurance can be broadly classified into:

Fire Insurance

Liability Insurance

Marine Insurance

Motor Insurance

Medi Claim

Travel Insurances

d. Export Credit Guarantee Corporation (ECGC):

38
The South Indian Bank Ltd. is appointed as the Corporate Agent of Export
Credit Guarantee Corporation of India (ECGC) for marketing the Exporter’s
Credit Insurance Policies.

Export Credit Guarantee Corporation of India Limited (ECGC) was

established in 1957 by the Government of India. It functions under the
administrative control of the Ministry of Commerce & Industry, Department
of Commerce, and Government of India. It is managed by a Board of
Directors comprising representatives of the Government, Reserve Bank of
India, Banking, Insurance and Exporting community. ECGC is the fifth largest
credit insurer of the world in terms of coverage of national exports.

ECGC provides a range of credit risk insurance cover’s to exporters against

loss in export of goods, failure of buyers and also other unforeseen losses. The
customers of other banks may also approach our branches for the credit
insurance policies of ECGC.

Credit Insurance Policies:

• SCR or Standard Policy

• Small Exporters Policy
• Specific Shipment Policy (Short Term)
• Export Turnover Policy
• Services Policy
• Construction Works Policy
• Specific Policy for Supply Contract
• Insurance Cover for Buyer’s credit and Line of credit
• Export (specific buyer’s) Policy
• Buyer Exposure Policy
• Consignment Exports Policy
• Software Project Policy
• IT Enabled Services Policy

Disclosure:

1 2 3 4 5
Name of
Insurer
IRDA the
Agent Name of Chief Name of Directors
License Corporate Insurance Executive
No. Code
Agent

907130 The Mr.Jose Mohan C.J 1. Sri. G.A.Shenai

South

39
 2. Dr. V.A.Joseph

3.Dr. John Joseph

4.
Sri.A.S..Narayanamoorthy

5.Sri. Davy K.Manavalan

6.Dr. C.J.Jose

7. Sri. Jose Alapatt

8.Sri. Paul Chalissery

9.Sri. Mathew L. Chakola

Indian
10. Dr. N.J.Kurian
Bank Ltd.

6 7 8 9 10 11

40
Names of Address: Town / District State Pin
all specified City code
persons in
alphabetical
order

1. Mr. Davis
Thrissur Kerala
P.J.
Thrissur 680
Head
2. Mr. 001
Office,
Manoj A.
T. B.
Road,

Mission
Quarters
12 13 14 15 16 17

Composite If License License License Date of

Composite- License
(Y / N) issued valid valid to
cancella
Name of from
on
other tion (if
Insurer any)

NA Nil
NA
No NA NA

e. Health Insurance
Medical expenses are surging day by day. Good and quality medical care is
becoming a dream for common people. Answer of the day for this problem is
health insurance. It helps people to cover their medical expenses. Health
insurance is becoming a necessity in today’s life. South Indian bank in

41
association with Bajaj Allianz provides our customers quality health insurance
products. The main products offered are:

1. HEALTH GUARD
2. PERSONAL GUARD
3. CRITICAL ILLNESS
4. HOSPITAL CASH
5. SILVER HEALTH

Home Insurance

Home insurance helps to protect your Sweet Home from burglary, theft & fire.
South Indian Bank in association with Bajaj Allianz provides online home
insurance.

1. HOUSEHOLDER’S POLICY

Motor Insurance

Motor insurance helps to cover loss due to accident. South Indian Bank in
association with Bajaj Allianz now provides the facility to insure your
vehicles online.

1. MOTOR POLICY

Travel Insurance

Whether travel is for business or pleasure, it involves risk. South India Bank
in association with Bajaj Allianz provides online travel insurance. It is safe
and fast, which can be bought sitting in the comfort of your office or home.

1. TRAVEL COMPANION

Disclaimer:
By clicking the ‘Subscribe Online’ button, you will be taken to resources
located on servers maintained and operated by Bajaj Allianz over whom SIB
does not have any control and SIB accepts no responsibility or liability for any
of the material contained on those servers. You will be using such hyperlinks
and third party websites at your own risk and SIB will not be liable for any

42
damages or losses, direct or indirect, arising out of or in connection with your
doing so. SIB is not in any way liable for the contents of any of these linked
websites or web pages. By providing hyperlinks to an external website or web
pages, SIB shall not be deemed to endorse, recommend, approve, guarantee,
indemnify or introduce any third parties or the services / products they provide
on their websites. When you click on the link to the external websites, please
note that you are leaving the SIB's website and our Policies and terms &
conditions will cease once you leave our website. SIB is not a party to any
contractual arrangements entered into between you and the provider of the
external website unless otherwise expressly specified or agreed to by SIB.
Such external websites are governed by their respective policies.

MONEY TRANSFERS
Fast, reliable and with minimal charges, money transfers with South Indian
Bank is a no-hassle affair. Be it within the country or abroad , our online
money transfer services, make the business of transferring money look one of
the easiest jobs. With all our branches networked under the Core Banking
system, you can send and receive money in an instant and meet your urgent
needs.

Domestic Transfers - Transfer/Receive funds within India

International Transfers - Transfer/Receive funds to/from

abroad

43
a. Domestic Transfers

Using the power of 100% networked branches under Core Banking System;
we have devised fast methods of transferring money from/to your account
with us. We are also active participants of the latest money transfer schemes
launched by Reserve Bank of India. This allows you to instantaneously send
and receive money to/from any other Bank account.
SIB Fast Money - Deposit cash/transfer money from any
branch

RTGS - High value transfers from/to any other Bank account under Real
Time Gross Settlement System of RBI

NEFT - Transfers from/to any other Bank Account under National

Electronic Fund Transfer System of RBI

Demand Drafts - Traditional method of sending Demand

Drafts

b. International Transfers
You can receive funds in your account, which has been remitted from abroad.
South Indian Bank, with its network of exchange houses tie-up, ensure that
any remittance made from abroad, reaches you instantly.

Online money Transfer

Correspondent Banks

Swift Centres

Draft Drawing Arrangements

44
 VALUE ADDED SERVICES
1. New Pension System (NPS) – South Indian Bank acts
as Point Of Presence (POP)
Pension Fund Regulatory and Development Authority (PFRDA), established
by the Government of India on 23rd August 2003, launched the New Pension
System (NPS) across the country with effect from 1st May 2009. PFRDA is
mandated to act as a regulator for the pension sector.

South Indian Bank (SIB), upon willingness and technical preparedness, has
been allowed by the PFRDA to act as one of the Point Of Presence (POP)
Banks in the country. In fact, SIB is the single old generation private sector
bank that has been permitted by PFRDA among the names of 22 POPs. SIB
has identified 312 selected branches across the nation, to act as the Point Of
Presence – Service Provider (POP-SP).

(1) Initial Customer Interaction for NPS, (2) Subscriber Registration, (3)
Maintenance of hard copies and record of transactions, (4) Regular subscriber
contribution file upload onto the Central Recordkeeping Agency (CRA)
System, (5) Subscriber servicing, (6) Grievance handling are some of the key
functions of the POP. Activities for providing all POP/POP-SP services to
fully meet the requirements of PFRDA in serving the citizens of India are
already implemented in SIB. li

2. Online Trading – SIBer Trade

Benefits to SIB customers

45
 1. Convenience – SIBer Trade helps our customers to easy management of
their equity investment portfolio. It offers the convenience of a Financial
Supermarket. Customers can open their Savings account, Demat Account and
trading account by approaching any of our Branches.

2. No more cheques. The system envisaged is fully online seamless one

and customers need not issue cheques for every share purchase, as done
usually. Debits/Credits for the purchase/sale of equities will happen
automatically to customers Savings accounts.

3. No need to submit Delivery Instruction Slips (DIS) or track the

settlement cycles. There is no requirement of submission of DIS by the
customers and the chances of auction of shares on forgetting to submit
delivery instructions to the DP are now ruled out.

4. Dynamic display of live stock exchange quotes gives the client immense
advantages while trading in stocks.

5. Best Price :Decisions can be made on the latest quotes and orders will
reach the stock exchange almost instantaneously, thereby assuring the best
price in every transaction.

6. Comfort – Client can place the order from anywhere in the world, any
time of his choice. Off line orders can also be placed after trade timings

7. Security - Funds/ shares lie with the bank till the trade is confirmed.
Transfer of funds/shares to the broker takes place only after the days trading is
over.

8. Delivery Trading – When the Customer purchases or sells shares in cash

trading the shares/funds will normally be credited to the demat/bank account
on the settlement day of the stock exchange which is normally two working
days after the trading day(T +2)

9. Margin Trading – Intra Day trades. Customer can trade up to a multiple

of the funds allocated keeping margin. The transactions will have to be
squared off, before 3 p m on the same day

10. Buy Today Sell Tomorrow – What is bought today can be sold
tomorrow, even before they are credited to the demat account in select Shares

11. Trade over phone – Customers can call a toll free number and sell or
buy or place orders with Geojit. Phone 1800-103-5504,91484 3911704

46
12. IPO – Client can also invest in Initial Public Offers also through SIBer
Trade. It can be made online also.

13. Customers are not losing interest for the unutilized funds

14. Customers will be getting contract notes on the same day, by evening
through mail.

Demat/Trading Opening Forms are available in all our Branches.

Instructions For Filling Up of Trading Account Opening Forms

(Read the instructions given on the back of front cover and page 51 and 52 of
trading form before filling up the Trading form)

1. All spaces should be filled up mandatorily and should be accompanied

by valid self attested documentary proof and verified by Branch official with
seal “Verified with Original”.

2. There should not be multiple signatures in pages. (ie Customer should

not put more than one signature at the places marked for signature.)

3. Signatures in PAN Card and Account Opening booklet should match. If

the signature in the trading booklet is not matching with PAN card signature,
client has to submit a signature confirmation letter signed by our Branch
Manager.

4. Any page where signatures are found cut off will not be accepted and
fresh booklet should be taken up (that means extra cost for the form)

5. A booklet which has been partly used by a client cannot be used by

another client.

6. Photograph has to be Passport size Photograph with white background

and projecting 80% of the face of the client.

7. Proof like telephone bill, electricity bill, bank statement or any such valid
document should be of a very recent date. Old ones beyond two months will
not be accepted.

8. Clients have to mention permanent address and communication address

in the booklet. Residence address is compulsory. Trade codes will not be
allotted if the client gives office address only. (Proof required for all of the
addresses mentioned)

47
9. Name in Trading/Demat a/c and PAN Card should be same. If there is
any spelling error in clients name in the PAN card, the client will have to
rectify the same in PAN card, by approaching the IT authorities or the
designated agencies like UTI, Karvy etc.

10. Photostat copies of pages of trading booklet is not acceptable.

11. Passports issued outside India, will not be accepted as address proof.

12. Clients have to mention the mail id in the trading booklet in capital
letters, without which the trading form will be rejected.

13. Foreign mobile numbers (ISD numbers), will not be accepted.

14. Customer shall put his signatures at the marked places on page 1,5, 7 to
29,31,33,35,37,39,41,43,45,49 (total 36 signatures of customer).
a.Two signatures of customer in page 7,13,
b.Joint holders if any should also sign on page 31,37,41

15. Trading booklet will be immediately given on opening of the a/c. Cover
attached to the trading booklet contains your Password and PIN no. Customers
are required to keep safe custody of the same.

16. Branch Manager will sign under ‘introduced by’ on page 5, and under
‘authorized by’ on page 6, and also as witness No 1 on page 37, with his
official seal.

17. Asst Manager of the branch will sign as ‘interviewer’ on page 5, under
‘documents verified by’ on page 6, and on page 52 for ‘Check list
verification’. He will put his signature under official seal and with signature
code.

18. There should be two witnesses on Page 37. One will be by the Branch
Manager and Asst Manager or one of the staff may sign with name and short
address as second witness of POA.

19. Kindly ensure that the same date and place is mentioned in all spaces
provided for the said purpose.

20. KYC Norms will be strictly followed.

21. Latest bank a/c statement, proof of demat a/c. duly signed by an officer
of SIB, should be submitted.

22. Fill the details and signatures in black/blue ball pen.

48
23. Tariff Agreement Form No 98 provided by the Bank to be signed by all
Demat/Trading Customers

If you are still having queries please mail your queries to mail id
demat@sib.co.in and get it clarified

The Process of Trading

1. Customer has to first allocate funds in his bank account before he start
buying.

2. The amount so blocked is the buying power of the customer.

3. Customers can block any number of times and there is no limit for the
amount that can be blocked for trading.

4. A buy order can be placed now. The order can be placed either as limit
fixing a price or as market order.

5. The order is immediately sent to the stock exchange for execution.

6. While selling, the system will check the balance in the demat account
automatically and if sufficient balance is available in the Demat account, will
proceed to send the order for sale of shares to the exchange.

7. The customer can also modify/cancel the order before executing it.

8. Funds will be transferred from the bank/demat account only at the end of
the trading day.

9. Credit of funds/securities will be done after receipt of the same from the
stock exchange.

10. Customers can view their Savings account balance, blocked amounts,
demat holdings on the trading screen under DP holdings.

11. Customers will be having access to Geojit’s research reports, corporate

information, technical analysis, Reuter News etc.

12. Credit of shares/ pay out of funds will be on T+2 i.e. after two working
days from trading day.

49
13. The minimum purchase order will have to be Rs.1000/- or above. There
is no minimum stipulation for sale of shares.

The brokerage payable to Geojit at present is as follows:

Nature of Transaction Online Call Center

Brokerage Brokerage
Rate * Rate*

Delivery transactions in Cash 0.30% 0.50%

segment

Intra day transactions in Cash 0.04% 0.075%

segment

Futures transactions in F&O Rs.75/- per 0.075%

segment lot

Options transactions in F&O Rs.75/- per 2.5% or

segment lot Rs.100/-
whichever is
higher

* There will be minimum brokerage criteria for small lots

Added Features

1. Customers will be getting Contract notes on the same day evening

through e-mail.
2. Customers can avail the Research reports, technical analysis, corporate
information, Reuter’s news etc available to help the client to take their
own decisions for trading

50
 3. There will be Exclusive toll free number, e-mail ID and exclusive team
of executives to cater to client requirements. Phone 1800-103-
5504,91484 3911704
4. For FAQs and free demo, kindly visit the website of Geojit. through our
website

Caution note to all our customers and prospects

'Stock market investments are subject to market risk. There is a risk of

significant loss in trading stocks and stock options and you should carefully
consider your financial position before making any trade.'
For Details regarding Demat account opening etc please see Value added
services-Demat Services.

3. PAN Service Agency (PSA)

Why you should have a Permanent Account Number (PAN)?: A new

provision relating to tax deduction at source (TDS) under the Income Tax Act
1961 will become applicable with effect from 1st April 2010. If the PAN is
not furnished to the bank, tax at the prescribed rate or 20%, whichever is
higher will be deducted, while paying / crediting interest on deposits.
However, there is no TDS on interest earned on NRE Deposits in Rupee /
Foreign currency and also on interest earned in domestic SB & RD A/cs. For
domestic term deposits, TDS will be deducted, only if the aggregate interest
exceeds Rs.10,000/- in a financial year. As per the revised rules, Form 15 G /
15 H for non deduction of tax in domestic term deposits will be valid /
accepted, only if the customer furnishes his PAN to the bank. Once the tax is
deducted by the bank and paid to the Govt. of India, (where PAN is not
submitted) Bank cannot refund the amount. Hence we advise you to obtain
PAN at the earliest and communicate the same to your bank branch before tax
is actually deducted on interest payments.

Special attention - NRIs having NRO A/cs: Form 15 G / 15 H for non

deduction of tax will not be accepted in NRO A/cs. TDS at the applicable rate
will be deducted while paying / crediting the interest for all types of NRO
A/cs, irrespective of the amount of interest. The prescribed rate of tax
deducted for NRO A/cs depends upon the country of residence of the
depositor and the Double Taxation Avoidance Agreement (DTAA), if any,
entered into between the respective Govts.

51
PAN card has multifarious uses in our day to day life:

• It is a major identification document.

• For investments in primary and secondary markets.
• For opening Demat accounts and Trading accounts.
• For Mutual Fund investments.
• Mandatory for any depositor (including Non-Residents) whose receipts
are subject to deduction of tax at source

FAQs on PAN / PAN Card

What is PAN?

Permanent Account Number (PAN) is a ten-digit alphanumeric number,

issued in the form of a laminated card, by an Assessing Officer of the Income
Tax Department.

A typical PAN is AFRPP1595D

What is the purpose of having a Permanent Account Number (PAN)?

It is mandatory to quote PAN on return of income, all correspondence with

any income tax authority and challans for any payments due to Income Tax
Department.

It is also compulsory to quote PAN in all documents pertaining to economic

or financial transactions notified from time-to-time by the Central Board of
Direct Taxes.

Some such transactions are sale and purchase of immovable property or

motor vehicle or payments to hotels for bills or payments in cash, of amounts
exceeding Rs. 25,000/-, in connection with travel to any foreign country.

It is also mandatory to mention PAN for obtaining a telephone or cellular

telephone connection.

Likewise, PAN has to be mentioned for making a time deposit exceeding Rs.
50,000/- with a Bank or Post Office or depositing cash of Rs. 50,000/- or
more in a Bank.
Is it compulsory to quote PAN on return of income?

Yes, it is compulsory to quote PAN on return of income.

52
Who must have a PAN?

1. All existing assesses or taxpayers or persons who are required to

furnish a return of income, even on behalf of others, must obtain PAN.
2. Any person, who intends to enter into economic or financial
transactions where quoting PAN is mandatory, must also obtain PAN.

3. The Assessing Officer may allot PAN to any person either on his own
or on a specific request from such person.
Who are those persons who are not required to obtain or quote
Permanent Account Number?

The following categories of persons are not required to obtain or quote PAN:

1. Persons having only agricultural income and do not have any taxable
income. Such persons will file a declaration (Form 61) in respect of
transactions where quoting of PAN is mandatory;
2. Non-residents;

3. Central Government, State Governments and Consular Offices in

transactions in which they are the payers.
Where do I apply for a PAN?

In order to improve PAN related services, the Income Tax department has
authorized UTI Technology Services Ltd (UTITSL) to set up and manage IT
PAN Service Centers in all cities or towns where there is an Income Tax
office. For convenience of PAN applicants in big cities, UTITSL has set up
more than one IT PAN Service Center.

How do I find an IT PAN Service Center?

The location of an IT PAN Service Center in any city may be obtained from
the local Income Tax Office, any office of UTI/UTITSL or from the Income
Tax department website ( www.incometaxindia.gov.in).

What services are provided by IT PAN Service Centers?

IT PAN Service Centers supply new PAN application forms (Form 49A),
assist the applicant in filling out the form, collect the filled form and issue an
acknowledgement slip. After obtaining a PAN from the Income Tax
department, UTITSL will print the PAN card and deliver it to the applicant.
What form is required to apply for a PAN? Can an application for PAN

53
be made on plain paper?

PAN applications can be made only on the new Form 49A which can be
obtained from any IT PAN Service Center or you can also download the
Form 49A from our website: http://www.utitsl.co.in

Can an application for PAN be made using the old Form 49A?

No, an application for a PAN can be made only on the new Form 49A revised
by the Central Board of Direct Taxes on May 29, 2003.
What documents and information must accompany the application for
Form 49A?

Individual applicants will have to attach a recent, colour, photograph (Stamp

Size: 3.5 cms x 2.5 cms); any document listed in Rule 114 must be supplied
as proof of identity and address; and the designation and code of the
applicable Assessing Officer of the Income Tax department must be noted on
the Form 49A.

Which documents can serve as proof of identity in the case of individual

applicants, including minors and HUF applicants?

Any one of the following items: a copy of a school leaving certificate;

matriculation certificate; degree of a recognized educational institution;
depository account; credit card; bank account; water bill; ration card;
property tax assessment order; passport; voter identity card; drivers license; a
certificate of identity signed by an MP, an MLA, a Municipal Councilor or a
Gazetted Officer;

In case the PAN applicant is a minor, any of above documents of any of the
parents or guardian of such minor shall serve as proof of identity;

In case the PAN application is made on behalf of a HUF, any of above

documents in respect of Karta of the HUF will serve as proof of identity.

What will be considered as a valid proof of address?

Any one of the following items: a copy of an electricity bill, telephone bill,
depository account, credit card, bank account, ration card, employer
certificate, passport, voter identity card, property tax assessment order,
drivers license, rent receipt, a certificate of address signed by an MP, an
MLA, a Municipal Councilor or a Gazetted Officer;

54
 In case the PAN applicant is a minor, any of above documents of any of the
parents or guardian of such minor shall serve as proof of address;

In case the PAN application is made on behalf of a HUF, any of above

documents in respect of Karta of the HUF will serve as proof of address.

Which documents can serve as proof of identity and address for other
applicants?

Any one of the following items:

• Copy of Certificate of Registration issued by the Registrar of

Companies
• Copy of Certificate of Registration issued by the Registrar of Firms
• Copy of Partnership Deed
• Copy of Trust deed
• Copy of Certificate of Registration Number issued by the Charity
Commissioner of the Registrar of Co-operative Society.

• Any other competent authority or any other document originating from

any Central or State Government Department establishing identity and
address of such person.
How do I to find an Assessing Officer code?

The Assessing Officer code may be obtained from the Income Tax Office
where you submit your return of income. Applicants who have never filed a
return of income may find an Assessing Officer code with the help of an IT
PAN Service Center or jurisdictional Income Tax Office. In either scenario,
the PAN application must state an Assessing Officer code, or your
application cannot be processed.
Is a photograph compulsory for making an application for PAN?

A photograph is compulsory only in the case of individual applicants.

What is the procedure for applicants who cannot sign?

In such cases, the left hand thumb impression of the applicant should be
affixed on Form 49A at the place meant for signatures and it must be attested
by either a Magistrate, a Notary Public or a Gazetted Officer, with an official
seal and stamp.
Is listing my father’s name compulsory for all female applicants (including
married/divorced/widow)?

55
 Yes, all female applicants, irrespective of marital status, must indicate their
father’s name on the PAN application.
Is it compulsory to mention a telephone number on Form 49A?

No, indicating your telephone number is not compulsory; however, it may

enable faster processing of your application.
Who can apply on behalf of a non-resident, a minor, or an individual
deemed mentally debilitated?

Section 160 of IT Act, 1961 provides that a non-resident, a minor, or an

individual deemed mentally debilitated may be represented by a
Representative Assessor. In such cases, an application for a PAN will be
made by the Representative Assessor.
Can Form 49A be completed on a typewriter?

Yes, but the letters should be typed in CAPITAL letters and should be clearly
legible.
What if I submit an incomplete Form 49A?

Your application will not be processed if it is incomplete. Your local IT PAN

Service Center can assist applicants with any queries they may have.
How much does it cost to apply for a PAN card at an IT PAN Service
Center?

UTITSL has been authorized to collect a service charge of Rs. 94/- (for
Indian Resident) and Rs. 744/- (for NRI) per PAN application; which
includes the cost of the new tamper proof PAN card. This amount must be
paid in cash, or by a demand draft, at any IT PAN Service Center. This
entitles you to a coupon containing a distinctive number that will have to be
affixed to your Form 49A.
Do you need to apply for a new PAN when you move from one city to
another?

A Permanent Account Number (PAN), as the name suggests, is a permanent

number and does not change; however, you must notify your nearest IT PAN
Service Center of an address change to ensure they have your most current
information.
Can a person obtain or use more than one PAN?

No, obtaining or possessing more than one PAN is against the law.
Are PAN cards issued prior to July 1, 2003 still valid?

56
 Yes, all PAN cards issued by the Department will remain valid. All persons
who have been issued a PAN need not apply again.
The Income Tax Department has issued me a PAN card; can I obtain a
new tamper proof PAN card?

In order to obtain the new tamper proof PAN card you must submit a CSF at
your local IT PAN Service Center. You need to indicate your existing PAN
on the form and surrender your old PAN card. The cost for this is Rs. 94/-.
I have applied for a PAN and received my PAN number but have not
received the actual PAN Card?

Apply afresh in CSF at any IT PAN Service Center quoting the PAN allotted
to you.

I have applied for PAN but have not received any communication from
the Income Tax Department?

In case you applied prior to notification of new form 49A on 29.5.2003 but
have not received the PAN, you will have to apply afresh CSF at any IT PAN
Service Center.

How will my PAN card be delivered to me?

UTITSL will ensure delivery of your PAN card by mail at the address
indicated by you in form 49A.
Who can I contact for inquiries regarding PAN applications submitted
after July 1, 2003?

All such inquiries should be addressed to:

The Vice President

IT PAN Processing Centre,
UTI Technology Services Ltd
Plot No. 3, Sector - 11
CBD_ Belapur, NAVI Mumbai-400 614
e-mail.- utitsl.gsd@utitsl.co.in
Tel No. 022-67931300, Fax No. 022-67931099

Your PAN application number, coupon number and IT PAN Service Center where your
application was submitted should be mentioned in all references.

4)DEMAT SERVICES

57
The South Indian Bank is offering Depository services for the benefit of its
customers.Through this facility, our customers can hold their securities in
electronic form with Central Depository Services (India) Ltd (CDSL).Thus the
customers of the bank can now open Demat accounts with us through our
Designated branches.

A Demat Acount is an account which holds the Beneficial Owner's (BO's)

securities in electronic form. There are many advantages in opening a Demat
account and keeping the securities in dematerialised form.

Major advantages are:-

• It is a safe and convenient way to hold securities compared to holding

securities in physical form.
• It eliminates damage,loss,theft and misusage of physical certificate
• No stamp duty is levied on transfer of securities held in Demat form.
• Change of address, registration of Power of Attorney etc can be effected
across
companies by one single instruction to DP.
• Shares can be traded and transferred even in single number which was
not
possible earlier

We offer the following facilities in a Demat Account

• Dematerialization, i.e. getting physical securities converted into

electronic form.
• Dematerialization i.e. getting electronic securities available in BO
Account converted back to physical form.
• Maintain record of holdings in the electronic form.
• Settlement of trades by delivering/receiving securities from /in BO
Accounts.
• Settlement of Off-market trades i.e. transactions between BOs entered
outside the Stock Exchange.
• Receiving electronic credit in respect of securities allotted by issuers
under IPO, bonus and rights shares etc.

For availing “EASI” Electronic Access to Securities Information, where by a

demat a/c holder can view his holdings in internet, Log in to
www.cdslindia.com register for “ EASI “Submit the form at DP for
authorisation

58
“CDSL SMART” SMS ALERT FACILITY of transactions /bonus/IPO
Credits to the beneficial owners mobile.Register with DP using the form
provided along with the opening form

How to Open a Demat Account

For opening a Demat account, the customer is requested to collect the

prescribed opening form from any of our designated branches. Filled up
application forms may be submitted with any of the notified branches
convenient to the customer. An agreement is to be executed on requisite stamp
paper. Applicant & joint holder/s has to submit in person, self attested copies
of the PAN card,Address and Identity proof along with originals for
verification, Bank account particulars and cancelled cheque leaf and passport
size photograph along with the application.On opening the Account a unique
BO ID (Beneficial Owner Identification) Number is alloted.

*IMPORTANT INSTRUCTIONS TO DEMAT ACCOUNT HOLDERS

*

Note : As per SEBI rule PAN card copy is mandatory for Demat Accounts
from 1st April 2006. For Accounts suspended for Debit for want of PAN Card
copy Beneficial owners should submit verified self attested PAN Card copy to
DP IMMEDIATELY for defreezing of accounts BENEFICIAL OWNERS
ARE REQUESTED TO UPDATE BANK RECORDS WITH DP.

BLANK AND SIGNED DELIVERY INSTRUCTIONS(DIS) SHOULD

NOT BE LEFT WITH YOUR BROKER /DP

SUBMIT THE DIS WITHIN THE SPECIFIED TIME(Trading

Day+1day before 3.30. pm)TO YOUR DP TO AVOID AUCTION
&MONETARY LOSS

PLEASE CHECK NOMINATION IS ENTERED IN YOUR DEMAT

ACCOUNT

IF NOMINATION IS NOT REQUIRED SUBMIT THE NOMINATION

FORM SIGNED AS “I/WE DO NOT WANT TO NOMINATE”

Investor Grievance Mail Id : demat@sib.co.in

Telephone Numbers 0487 2420020 Extn 390

Tel/fax 0487 2444769

59
Statutory Charges
Account Opening Free--Stamp paper charges to be borne by the customer
Advance / Deposit NIL Account Maintenance

Rs.200 plus service tax for all BOs. For Corporate accounts Rs.1000 plus
service tax

Demat Rs.75/- plus service tax as minimum upto 2 certificates and additional
Rs.10 for every other certificate. Remat Rs.100 per request Transaction
(Debit) Rs.25 plus service tax Pledge Creation Rs.100 plus service tax Pledge
Creation confirmation NIL
Pledge Closure Rs.100 plus service tax Pledge Closure
confirmation NIL
Pledge Invocation NIL Failed instruction charges NIL
Other Charges Actual courier charges Entry of PAN No Rs.25 each

4. ANY BRANCH BANKING

On introduction of the prestigious centralized core banking solution in
technology partnership with the Infosys Technologies Ltd., South Indian Bank
is now providing absolutely on-line anywhere banking facilities at all its
branches, covering all the major centres in the country.
Two anywhere banking products are now offered by the Bank to its privileged
customers.

SIB PRIVILEGE for Savings A/c Customers

SIB PREMIUM for Current /Overdraft A/c Customers

SIB PRIVILEGE
This is a unique savings account introduced for the benefit of the business
class for providing anywhere banking facility.

Features (in brief)

• Accounts can be opened in joint names

• Complete Any Branch Banking Facility
• Payable at Par Cheques
• International ATM cum Debit Card
• Nomination facility available

60
How to opt for Privilege Facility in your Savings Account

• If you are an existing Savings Account holder, you may download the
Application form from the link provided below, fill the same, sign and
submit to your branch to convert your Savings Account to a Privilege
Account.
• If you are a new customer, you may contact our nearest branch for
opening a Savings Account. You may request for Privilege facilities
while opening the account.

SIB PREMIUM
This is a unique current/overdraft account introduced for the benefit of the
business class for providing anywhere banking facility. For full details of the
scheme please

You get the freedom of Any Branch Banking in your accounts, while opting
for a Premium Account. The Premium account can be a Current Account,
Overdraft Account (OD) or Cash Credit Account (CC).

In case of Current Accounts, you can choose your Premium Account category
which ranges from a minimum of Rs 5000.
In case of OD and CC accounts, the minimum eligibility for Premium
Account is a sanctioned overdraw limit of Rs 2 lack.

In a Premium Account we offer:

• Unlimited transactional facilities

• Payable at par Cheque Book facility
• Complete anywhere banking facilities including cheques, cash deposit
• Separate Premium Categories such as General, Standard, Silver, Gold
and Platinum which can be chosen as per your requirement (applicable
to Current Accounts)
• Instant Money Transfer facilities
• Balance Inquiries
• Statement of accounts
• Allows instant fund transfer from one account to another
• Get Demand Drafts/Banker’s Cheques
• Collection of local/outstation cheques

61
 • Bouquet of Value Added Services

How to opt for Premium Facility in your Business Account

• If you are an existing Business Account holder, you may download the
Application form from the link provided below, fill the same, sign and
submit to your branch to convert your Business Account to a Premium
Business Account
• If you are a new customer, you may contact our nearest branch for
opening a Business Account. You may request for Premium
facilities while opening the account.

5. SIB GLOBAL ATM CARD

South Indian Bank’s Global ATM-Cum-Debit Cards are now acceptable in
the Master Card International Network System as well as in the domestic
National Financial Switch (NFS) Network System owned by IDRBT, the
technical arm of RBI.

Global ATM cum Debit Card

• Provide on-line access to Savings Bank or Current accounts of South

Indian Bank.
• Tied up with the world-renowned service provider, MasterCard
International.
• Can be used in 8,30,000 ATMs & 7 million Point Of Sale(POS)
terminals worldwide.
• South Indian Bank being a member of NFS network, South Indian Bank
cards are acceptable in other member banks ATMs.
• Can be used in 31000+ ATMs in INDIA.
• The Maestro Debit card is a PIN based card and operates similar to
ATM making it 100% secure, even in POS terminals.
• Global Cards are issued free of cost to the customers of South Indian
Bank.
• Nominal fee is charged to the users at other Bank’s ATMs.
• Cash withdrawal limits through ATMs is up to Rs.20,000/- per day.

Privilege Card

62
 • This is a multi-purpose debit card issued to an SIB-Privilege account
holder.
• All features of Global ATM-cum-Debit card available
• The SIB-Privilege Card can be linked to any five SB accounts of the
customer
• On-line fund transfer upto Rs.1,00,000/- is allowed between these five
accounts through ATMs.
• The privilege card holders can withdraw money (free up to Rs.20,000/-
per day) at the networked branches, by using the specially
designed/personalized privilege cheques, provided in the account.
• For maintaining an SIB-Privilege account, an average monthly credit
balance of Rs.1, 000/- is stipulated.

6. INTERNET BANKING

Sibernet” is the Internet Banking Service of South Indian Bank Ltd, which
allows its customers to avail the bank’s services through Internet.

Advantages Of Sibernet

• Online Payments.
• Conduct Banking Operations from House/Office/Cyber-cafe
• Service available for 24 hours & 365 days a year
• Accessible from any where in the world using Internet.

Services Offered

Online Bill Payments / Shopping Mall:

This facility enables the customers to make payment for goods/services

through Internet Banking on-line real time in a secured way. The types of
services, for which the payment can be made, include the following:

63
Service List of Merchants / Service
Category Providers

Mobile Bill BSNL Cellone / Airtel / Idea /

Payments Reliance / Vodafone etc.

Insurance LIC / MetLife / TATA AIG / Birla

Premium Sun Life / Kotak Mahindra /
Payments Prudential ICICI etc.

Credit Card SBI Card / CitiBank Card / Barclay’s

Payments Card, etc.

Loan Repayment HDFC / CITIBANK

Donations / CRY / UNICEF

Charity

Religious Guruvayur Temple / Sidhivinayaka

Offerings Temple

Educational IIM Bangalore

Institutions

Tours & Travels Travelguru / Akbar Travels / Make My

Trip / Yatra.com

Online Shopping Home Shop18 / Sri Jagdamba Pearls

Dealer/ Storeguru

Inquiries

• Get complete details of all your accounts (SB/Deposit/Loan …)

• Print/Save the pass-sheet of any of your Operative accounts for any
period.
• Cheque Status Inquiry
• Clearing Instruments Inquiry
• Lien Inquiry
• Nominee Inquiry
• Interest Details of Deposit Accounts

64
 • Print Pass-sheet of any loan account for any period.

Funds Transfer

• Fund transfer between your own operative accounts.

• Fund transfer to other operative accounts in SIB

Requests

• Cheque book / DD/ Deposit Open .

• Simulate pre-closure of your deposit/loan account.
• Cheque book / DD/ Deposit Open .
• M-commerce registration.

Mails

• Send secured instructions to your Relationship Manager.

• Receive immediate reply from Relationship Manager.

Alerts

• Receive important account related Alerts from the system.

• Deposit maturing soon, loan repayment alert, minimum balance alert…
• Receive important account related Alerts from the system.

Customise

• Give different nick-names to your accounts for easy identification.

Change the amount & date format as per your choice. Change password
option is also available.

Activity

• View the entire history of activity done by you in Sibernet

Modelling

• The customer can make investment/credit decisions based on

deposit/loan modelling tools

Security Features

• The software is from Infosys, a leading Indian Software house.

• Digital Certificate from Verisign, a global pioneer in e-security
ensuring 128-bit encryption.

65
 • We have complied with Global Standards while implementing the
various layers of security features such as Firewalls & Anti-Virus
• We are offering Sibernet services for Retail (Individuals/Proprietorship
Concerns) and Corporate (Companies/Partnership Firms) customers.
The additional services available to the Corporate customers are as
follows,

Multiple Users- The corporate can apply Internet Banking facility for the
different officials responsible for operations in bank accounts. The Corporate
also has the facility of setting up Work-flow rules (i.e. hierarchical rules for
approving requests within the organisation). The corporate can also restrict the
accounts being shown to different users, based on their designations, roles,
divisions etc. (e.g. Divisional Manager-Production, Regional Manager-
Finance etc). This would ensure secrecy in the Corporate Accounts.

Limits - The corporate user can view the Corporate Limits granted to the
different linked accounts maintained in all the branches of South Indian Bank.

7. M-Commerce
Since M-commerce is an entirely new breed of payment channel and involves
payments by debit to your bank account with SIB, separate registration is
required for availing this facility.

With the convenience of M-Commerce you can now shop with merchants tied
up with M/s PayMate and make online payments through your registered

In M-Commerce, the Bank account of the customer is linked to his / her

mobile phone registered in India, which facilitates M-payments anytime,
anywhere on a 24x7 basis. This is the most convenient and hassle free
payment service, which can be initiated through your mobile phone. These
payments are authenticated by the system with the secret MPIN (Mobile
Personal Identification Number provided for this purpose by PayMate through
mobile phone) of the customer. For further details please refer the user guide
provided below.

As an introductory offer, the service is offered free of cost to the customer.

The service is ‘SMS’ based and works on both GSM and CDMA networks
and across all handset models. As per RBI guidelines, no cross border
transactions are permitted. Hence these payment transactions can take place in
India and only in Indian rupees. For this reason, only domestic mobile phone

66
number can be registered for availing M-Commerce service. The service is
offered to the bank’s customers who are fully complied with the AML / KYC
norms.

Registration for the M-Commerce service requires physical presence of the

customer at the SIB branch along with the signed Registration Form.
However, customers having Internet banking facility (Sibernet-Retail) can
register themselves through Internet banking. Such Net banking customers
may login to Sibernet - Retail portal and get them registered by visiting
Requests -> Register M-Commerce service provider. A write up on
registration process is also provided below along with the Application cum
terms & conditions of the service, User guide, merchant list etc. So, get
yourself registered for this service and enter the arena of M-commerce! All
well wishers are requested to open a SB A/c with us and avail unlimited
facilities of Net banking and Mobile banking.

8. MOBILE BANKING
As a registered user of SIB Mobile Service, you can send Pull Requests
and/or receive Push Alerts.

• Pull Requests- Send simple, standard SMS messages to a published

number of the Bank, 91 9840 777222 to get online information on your
account/s. You will immediately receive an automatic SMS reply from
the Bank.
• Push Alerts-Receive automatic SMS message from the Bank when
certain events occur in your account/s. You can set the preconditions for
such events (Alerts) in the first page of the Registration form. Any
subsequent change in these preconditions can be informed to your
Branch Manager.
•

9. SIB-CITIBANK CO-BRANDED INTERNATIONAL

CARD
SIB always try to offer the best available products available in the market
to our customers. We had been offering a Domestic credit card which we want
to enhance to an International credit card. Therefore, we have made a tie up
with Citibank for an International VISA affiliated co-branded credit card and

67
started sourcing from 12th February, 2007 onwards. The application forms are
available at selected branches across India

The card is issued free of cost as a gesture of our relationship with our
customer.

There are certain set of PIN codes approved by Citibank. Only those
customers who reside in that PIN codes can apply. Those customers who
reside in the approved PIN codes may apply now.

Citibank has a very relaxed credit policy formulated exclusively for our SB
customers.

Our customers are requested to go through the important guidelines ,rules and
regulations given in the application form and get satisfied themselves before
applying.

Savings bank customers are requested to submit the following documents

along with the application form.

1. Identity Proof(Passport , Ration card with photo, Driving license ,

Voters id etc)
2. Address Proof( should match with the address given in the application
form)
3. PAN Card or Form 60.
4. Auto debit instruction signed by the customer to debit his monthly
credit card bills with three options (Select appropriate option)

It is our intention to increase the approved centers so that the all our eligible
customers will be able to apply. When more locations are opened, the same
will be communicated through our web-site. Till that time, a customer who
resides in the approved PIN codes alone can apply.

The completed application form may be handed over to the SIB branch for
processing.
Citibank will send the credit card directly to the customer in case the card is
approved by them.

South Indian Bank is sourcing credit card applications from our valuable
customers to facilitate card issue by Citibank, under special & liberalized
credit policies formulated exclusively for South Indian Bank SB customers.
However, Citibank may issue card solely at their discretion and based on their
guidelines and credit policies. Their decisions will be final.

68
8. SIB COLLECT
The Bank has introduced an attractive product, SIB collect, for fast collection
of outstation instruments. The customers of any particular town can deposit
their collection instruments and other request in the drop boxes available at all
branches at that centre.All the instruments are pooled at a central office via
fast courier services and collected very fast. The bank also makes use of its
anywhere banking facility for the fast collection of the instruments. This
facility is now available at Ernakulam, Thrissur, Chennai, Bangalore and
Mumbai.

• It is a centralized cheque collection system.

• It is based on the drop box concept
• It gives freedom to the customer to deposit instruments at convenient
centers
• It gives freedom to the customer to transact at convenient time
• It saves time to the customer by just dropping the instruments instead of
waiting at the counters for acknowledgement.
• It makes use of any where banking facility concept of finnacle for fast
collection.
• It saves the time of the branches in doing outstation collection and
dispatch
• It is a system based on trust on the banking officials

9. KYC CERTIFICATION FOR MUTUAL FUND

INVESTORS
SIB have entered into an agreement with M/s.CDSL Ventures Ltd (CVL) to
become a Point of Service (POS) on their behalf,for KYC Certification of
Mutual Fund Investors.

Prevention of Money laundering Act (PMLA) 2002 has made it mandatory for
all Mutual Funds to verify the credentials of the applicants desirous of
subscribing to their 'units',in order to comply with the 'Know Your Customer
(KYC)' norms. As a result,all applicants have to submit their Proof of Identity
(POI) and Proof of Address (POA) on each occasion when they purchase units
of any mutual fund.

69
In this regard,M/s.CDSL Ventures Ltd (CVL), a wholly owned subsidiary of
CDSL,has been mandated by the Association of Mutual Funds in India
(AMFI), to create the necessary infrastructure in order to handle the KYC on
behalf of the Mutual Fund Industry. For the convenience of the investors,
CVL proposed to utilize the services of our branches, which are familiar with
the KYC norms and we have agreed to become a Point of Service (POS) for
CVL. In the KYC certification process,the investors have to submit the KYC
Certification application form to the Bank,along with the KYC documents.
The Bank will enter the particulars in the KYC system provided at the website
of M/s.CVL and issue a system generated acknowledgement letter to the
Investor, a copy of which the Investor can attach to the Mutual Fund
application, thereby avoiding submission of the KYC documents along with
each application for Mutual Fund units.

Initially, this service is provided only at 16 branches,which will be spread out

to other branches soon. This service is offered totally free of cost. The KYC
Certification Application forms are provided herewith.

10. CASH MANAGEMENT SYSTEM (CMS)

Now customers of the following leading Life Insurance Companies can

remit their life insurance premium at any of the branches of our Bank, free of
cost.

• 1. ICICI Prudential Life Insurance Co. Ltd.

• 2. TATA AIG Life Insurance Co. Ltd.
• 3. ING Vysya Life Insurance Co. Ltd.

Under this arrangement, a life insurance premium up to Rs. 49,999 per policy
can be paid in cash (Cash only) by the customers of these companies at any of
our branches. Cheques / Drafts are not accepted at present under this
arrangement.

The documents required to be submitted by the customer while remitting the

premium:

1. The Premium Renewal Notice received from the respective company.

2. Premium payment challan duly filled by the customer.

70
 Chapter-3
INTEREST RATES

71
DOMESTIC DEPOSITS (Also applicable for NRO Accounts)
Interest rate on Domestic Deposits with effect from 7th, September 2009

Period Rate Rate

Single Deposit of Single Deposit of Rs. Single Deposit

< Rs.15.00 lacs 15.00 lacs to (incl) of above
per annum Rs.100.00 Rs. 100.00 lacs
lacs

7 days to 14 ---- ----

days

15 days to 45 3.25% 3.25% Rates to be

days

46 days to 90 4.25% 4.25% Obtained from

days

91 days to 5.50% 5.50% Head Office -

179 days (Treasury

180 days to 6.25% 6.25% Dept.) on a

less than 1 daily basis.
year

1 year to 3 7.25% 7.25% Premature

years closure

Above 3 7.50% 7.50% penalty also

years to 5 will be obtained

72
years

Above 5 8.00% 8.00% from Treasury

Dept.
years

Special rates for resident senior citizens, individually or jointly with another
resident citizen : 0.50%

Premature closure penalty of 0.50% for all fresh deposits and deposits renewed
afresh upto Rs.15.00 lacs. 1% premature closure penalty for deposits above
Rs.15.00 lacs.

DOMESTIC SAVINGS ACCOUNT(Also Applicable for NRO Accounts)

Period Rate

Savings Bank A/c 3.50% per annum

NRE DEPOSITS
Interest rate on NRE Deposits with effect from 1st June 2010

Period Rate

1 Year to less than 2 years 2.95% per annum

73
2 years to less than 3 years 3.00% per annum

3 years upto and inclusive of 10 years 3.47% per annum

NRE SAVINGS ACCOUNT

Period Rate

Savings Bank A/c 3.50% per annum

FCNR(B) DEPOSITS

Interest rate per annum on FCNR(B) Deposits with effect from

1st June 2010

Period USD GBP EURO AUD

1 year to less than 2 yrs 2.20% 2.42% 2.24% 6.47%

2 years to less than 3 yrs 2.25% 2.50% 2.34% 6.02%

3 years to less than 4 yrs 2.72% 2.91% 2.60% 6.15%

4 years to less than 5 yrs 3.08% 3.28% 2.87% 6.40%

5 years 3.43% 3.59% 3.12% 6.54%

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RFC ACCOUNT
Interest rate per annum on RFC Deposits with effect from 1st June 2010

Period USD GBP EURO

1 year to less than 2 yrs 2.20% 2.42% 2.24%

2 years to less than 3 yrs 2.25% 2.50% 2.34%

3 years only 2.72% 2.91% 2.60%

Savings Bank A/c 0.50% 2.00% 1.00%

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 Chapter-4
ACCOUNTS & RATIOS

Balance sheet
Mar '
Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 06
07

Sources of funds
Owner's fund
Equity share capital 113.01 113.01 90.41 70.41 70.41
Share application
money 0.57 - - - -

76
Preference share
capital - - - - -
Reserves & surplus 1,353.64 1,172.59 1,051.81 653.56 570.45

Loan funds
Secured loans - - - - -
Unsecured loans 23,011.52 18,092.33 15,156.12 ###### 9,578.66
Total 24,478.74 19,377.92 16,298.34 ###### 10,219.51

Uses of funds
Fixed assets
Gross block 274.26 241.28 203.82 168.47 156.9
Less : revaluation
reserve 18.07 18.41 18.77 - -
Less : accumulated
depreciation 121.73 104.96 91.07 78.88 67.09
Net block 134.47 117.91 93.99 89.59 89.8
Capital work-in-
progress - - - - -
Investments 7,155.61 6,075.20 4,572.22 ###### 2,739.39

Net current assets

Current assets, loans &
advances 415.3 284.11 248.55 268.47 284.53
Less : current liabilities
& provisions 706.27 730.18 745.24 656.9 607.19
-
Total net current assets -290.96 -446.06 -496.69 388.43 -322.66
Miscellaneous
expenses not written - - - - -
Total 6,999.12 5,747.05 4,169.52 ###### 2,506.53

Notes:
Book value of unquoted
investments - - - - -
Market value of quoted
investments - - - - -
Contingent liabilities 2,987.20 2,426.35 2,285.80 ###### 1,479.36
Number of equity
shares outstanding
(Lacs) 1130.06 1130.06 904.05 704.05 704.05

Profit loss account

Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06

Income

77
Operating income 2,105.18 1,751.39 1,354.81 1,020.60 784.53

Expenses
Material consumed - - - - -
Manufacturing
expenses - - - - -

Personnel expenses 226.32 214.18 146.35 130.14 138.09

Selling expenses 7.65 5.49 3.54 3.64 2.27

Administrative
expenses 152.57 116.86 98.91 153.49 144.06

Expenses capitalized - - - - -

Cost of sales 386.54 336.53 248.79 287.27 284.42

Operating profit 351.21 250.82 190.92 124.24 48.97

Other recurring
income 79.98 75.45 67.39 50.98 42.67

Adjusted PBDIT 431.2 326.27 258.31 175.22 91.64

Financial expenses 1,367.43 1,164.04 915.1 609.09 451.14

Depreciation 16.76 13.9 12.19 11.78 12.23

Other write offs - - - - -

Adjusted PBT 414.44 312.37 246.12 163.43 79.42

Tax charges 142.95 90.08 48.12 26.06 28.03

Adjusted PAT 233.81 193.98 151.47 107.22 51.66

Non recurring items -0.05 0.77 0.16 -3.11 -0.76

Other non cash
adjustments - - - - -

Reported net profit 233.76 194.75 151.62 104.12 50.9

Earnings before
appropriation 248.43 203.83 159.82 110.6 50.94

Equity dividend 45.2 33.9 27.12 17.6 12.67

Preference dividend - - - - -

Dividend tax 7.51 5.76 4.61 2.99 1.78

Retained earnings 195.72 164.17 128.08 90 36.49

78
 Capital structure

Paid
Class Paid Up Paid
From To Authorized Issued Up
Of Shares Up
Year Year Capital Capital Face
Share (Nos) Capital
Value
Equity
2009 2010 Share 125 113.01 1.13E+08 10 113.01
Equity
2008 2009 Share 125 113.01 1.13E+08 10 113.01
Equity
2007 2008 Share 125 90.41 90405192 10 90.41
Equity
2006 2007 Share 125 70.41 70405192 10 70.41
Equity
2005 2006 Share 125 70.41 70405192 10 70.41

Dividend
Year Month Dividend (%)
2010 May 40
2009 May 30
2008 Apr 30
2007 Apr 25
2006 May 18

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Share holding
Share holding
31/03/2010 31/12/2009 30/09/2009
pattern as on :
Face value 10 10 10
No. Of % No. Of
No. Of Shares % Holding % Holding
Shares Holding Shares
Promoter's holding
Sub total - - - - - -
Non promoter's holding
Institutional investors
Banks Fin. Inst.
and Insurance 6470365 5.73 6468115 5.72 9678048 8.56
FII's 41531720 36.75 42290799 37.42 41899299 37.08
Sub total 59664224 52.8 57936665 51.27 56718905 50.19
Other investors
Private
Corporate
Bodies 9217558 8.16 7376512 6.53 8877521 7.86
Others 4242086 3.75 4123095 3.65 4136462 3.66
Sub total 13459644 11.91 11499607 10.18 13013983 11.52
General public 39882622 35.29 43570218 38.56 43273602 38.29
Grand total 113006490 100 113006490 100 113006490 100

Ratios
Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06

Per share
ratios
Adjusted EPS (Rs) 20.69 17.17 16.75 15.23 7.34
Adjusted cash EPS
(Rs) 22.17 18.4 18.1 16.9 9.07
Reported EPS (Rs) 20.69 17.23 16.77 14.79 7.23
Reported cash
EPS (Rs) 22.17 18.46 18.12 16.46 8.97
Dividend per share 4 3 3 2.5 1.8
Operating profit per
share (Rs) 31.08 22.2 21.12 17.65 6.96
Book value (excl
rev res) per share
(Rs) 129.78 113.76 126.34 102.83 91.02
Book value (incl
rev res) per share
(Rs.) 131.38 115.39 128.42 102.83 91.02
Net operating
income per share
(Rs) 186.29 154.98 149.86 144.96 111.43

80
Free reserves per
share (Rs) 88.69 80.52 92.77 65.23 47.53

Profitability
ratios
Operating margin
(%) 16.68 14.32 14.09 12.17 6.24
Gross profit margin
(%) 15.88 13.52 13.19 11.01 4.68
Net profit margin
(%) 10.69 10.66 10.66 9.71 6.15
Adjusted cash
margin (%) 11.46 11.37 11.5 11.1 7.72
Adjusted return on
net worth (%) 15.94 15.08 13.26 14.81 8.06
Reported return on
net worth (%) 15.93 15.14 13.27 14.38 7.94
Return on long
term funds (%) 118.92 112.64 97.58 102.54 82.83

Leverage
ratios
Long term debt /
Equity - - - - -
Debt equity ratio 15.69 14.07 13.27 16.91 14.95
Owners fund as %
of total source 5.99 6.63 7 5.58 6.27
Fixed assets
turnover ratio 7.68 7.26 6.65 6.06 5

Liquidity
ratios
Current ratio 0.58 0.38 0.33 0.4 0.46
Current ratio (inc.
st loans) 0.01 0.01 0.01 0.02 0.02
Quick ratio 24.96 17.99 15.67 13.53 11.86
Inventory turnover
ratio - - - - -

Payout ratios
Dividend payout
ratio (net profit) 22.54 20.36 20.92 19.77 28.38
Dividend payout
ratio (cash profit) 21.04 19 19.37 17.76 22.89
Earning retention
ratio 77.46 79.56 79.06 80.8 72.03
Cash earnings
retention ratio 78.97 80.92 80.62 82.7 77.39

81
Coverage
ratios
Adjusted cash flow
time total debt 91.84 87.03 92.61 102.84 149.94
Financial charges
coverage ratio 1.32 1.28 1.28 1.29 1.2
Fin. charges
cov.ratio (post tax) 1.18 1.18 1.18 1.19 1.14

Component
ratios
Material cost
component (%
earnings) - - - - -
Selling cost
Component 0.36 0.31 0.26 0.35 0.28
Exports as percent
of total sales - - - - -
Import comp. in
raw mat.
consumed - - - - -
Long term assets /
total Assets 0.94 0.95 0.94 0.92 0.9
Bonus component
in equity capital
(%) 19.99 19.99 - - -

Key Ratios
Years 10-Mar 9-Mar 8-Mar 7-Mar 6-Mar
Credit-Deposit(%) 67.3 67.1 67.1 65.5 64.9
Investment /
Deposit (%) 32.2 32 29.2 28.3 32.5
Cash / Deposit (%) 5.8 5.9 6.1 5.7 5.4
Interest Expended /
Interest Earned (%) 70.6 69 70.9 62.4 59.3
Other Income /
Total Income (%) 11.7 9 10.3 11.1 10.6
Operating
Expenses / Total
Income (%) 16.9 17.9 17.5 21.6 27.6
Interest Income /
Total Funds (%) 8.4 9 8.4 8 7.5
Interest Expended /
Total Funds (%) 6 6.2 6 5 4.4
Net Interest
Income / Total
Funds (%) 2.5 2.8 2.5 3 3.1

82
Non Interest
Income / Total
Funds (%) 1.1 0.9 1 1 0.9
Operating
Expenses / Total
Funds (%) 1.6 1.8 1.6 1.9 2.3
Profit before
Provisions / Total
Funds (%) 2 1.9 1.8 1.9 1.6
Net Profit / Total
funds (%) 1 1 1 0.9 0.5
RONW (%) 17 16 16.4 12.9 9.3

Chapter-5
SWOT Analysis & Conclusion

83
SWOT ANALYSIS

THRISSUR - Kerala-based South Indian Bank (SIB) posted net profit of

Rs.233.76 crore in the last fiscal — a rise of 20.03 percent over the previous
year (2008-09).

The total business of the bank increased by 29.40 percent to Rs.39, 127 crore
and the deposits grew to Rs.23,012 crore from Rs.18,092 crore in the previous
fiscal, SIB said in a release.

The bank earned a total income of Rs.2,144.18 crore during the year as against
Rs.1,851.19 crore in 2008-09.

With extensive monitoring and recovery measures, the bank could bring down
net NPA (non-performing assets) percentage to 0.39 per cent from 1.13
percent as on March 31, 2009.

84
The board of directors has recommended a dividend of Rs.four per share.

The bank has 580 branches across 26 states.

System’ aberration; Time to reboot

Q4FY10 absorbs full-year interest burden on special deposit scheme

 System migrates to daily accrual basis with immediate effect

 Independent risk mitigation group established for proactive monitoring

 Gross NPA at 0.6% and net NPA at 0.17%

 Convinced on management credibility and implementation of corrective

measures to address

 Maintain BUY with a revised TP of Rs180 (from our earlier TP of Rs190)

South Indian Bank (SIB), suffering from a system aberration, reported a

below-par performance during Q4FY10 with NII at Rs7.89bn, registering a
46% YoY decline

while net profit clocked in at Rs386mn, witnessing a 23% YoY decline. The
system error resulted in SIB having to absorb the full-year impact of the
interest expenditurefrom a special deposit scheme during Q4FY10 alone.

Subsequent to our interaction with senior members of the management team

as well as the head of the IT department, we are convinced that corrective
measures have been introduced and implemented. We append a piece on the
key takeaways from our interaction with a senior member of SIB’s IT team.

85
Valuation and recommendation: We maintain our BUY recommendation on
the stock with a marginally revised TP of Rs180. Our FY11E estimates have
undergone downward adjustments to factor in the management guidance on
key parameters.

At its CMP of Rs151, the stock quotes at 1.0x our FY11E ABVPS of Rs146

Conclusion

The past decade has seen dramatic losses in the banking industry. Firms that
had been performing well suddenly announced large losses due to improper
functions in a bank. Since functions of a bank are very important for its
growth, great concern should be given towards it. South Indian Bank functions
in its full efficiency & capability. This helped the bank to overcome the recent
scenario.

86
 Chapter-6

Bibliography & Webliography

87
 BIBLIOGRAPHY

• BANKING – I.M. PANDEY 9th edition

• South Indian Bank- official magazine

• South Indian Bank- Accounts & Forms.

WEBLIOGRAPHY

• www.Southindianbank.com

• www.investopedia.com

88
• en.wikipedia.org

• www.google.com

89