Banks in India.......by Apurva Dutta

Introduction:-

The banking section will navigate through all the aspects of the Banking System in India. It will discuss upon the matters with the birth of the banking concept in the country to new players adding their names in the industry in coming few years.

The banker of all banks, Reserve Bank of India (RBI), the Indian Banks Association (IBA) and top 20 banks like IDBI, HSBC, ICICI, ABN AMRO, etc. has been well defined under three separate heads with one page dedicated to each bank.

However, in the introduction part of the entire banking cosmos, the past has been well explained under three different heads namely:

• History of Banking in India
• Nationalisation of Banks in India
• Scheduled Commercial Banks in India

The first deals with the history part since the dawn of banking system in India. Government took major step in the 1969 to put the banking sector into systems and it nationalised 14 private banks in the mentioned year. This has been elaborated in Nationalisationof Banks in India. The last but not the least explains about the scheduled and unscheduled banks in India. Section 42 (6) (a) of RBI Act 1934 lays down the condition of scheduled commercial banks. The description along with a list of scheduled commercial banks are given on this page. 

Major Banks in India

ABN-AMRO Bank Abu Dhabi Commercial Bank American Express Bank Andhra Bank Allahabad Bank Axis Bank (Earlier UTI Bank) Bank of Baroda Bank of India Bank of Maharastra Bank of Punjab Bank of Rajasthan Bank of Ceylon BNP Paribas Bank Canara Bank Catholic Syrian Bank Central Bank of India Centurion Bank China Trust Commercial Bank Citi Bank City Union Bank Corporation Bank Dena Bank Deutsche Bank Development Credit Bank Dhanalakshmi Bank Federal Bank HDFC Bank HSBC ICICI Bank IDBI Bank Indian Bank

Indian Overseas Bank IndusInd Bank ING Vysya Bank Jammu & Kashmir Bank JPMorgan Chase Bank Karnataka Bank Karur Vysya Bank Laxmi Vilas Bank Oriental Bank of Commerce Punjab National Bank Punjab & Sind Bank Scotia Bank South Indian Bank Standard Chartered Bank State Bank of India (SBI) State Bank of Bikaner & Jaipur State Bank of Hyderabad State Bank of Indore State Bank of Mysore State Bank of Saurastra State Bank of Travancore Syndicate Bank Taib Bank UCO Bank Union Bank of India United Bank of India United Western Bank Vijaya Bank Kotak Mahindra Bank Yes Bank

Banking services in India

With years, banks are also adding services to their customers. The Indian banking industry is passing through a phase of customers market. The customers have more choices in choosing their banks. A competition has been established within the banks operating in India.

With stiff competition and advancement of technology, the services provided by banks has become more easy and convenient. The past days are witness to an hour wait before withdrawing cash from accounts or a cheque from north of the country being cleared in one month in the south.

This section of banking deals with the latest discovery in the banking instruments along with the polished version of their old systems. 

Financial and Banking Sector Reforms

 

The last decade witnessed the maturity of India's financial markets. Since 1991, every governments of India took major steps in reforming the financial sector of the country. The important achievements in the following fields is discussed under serparate heads: 

• Financial markets
• Regulators
• The banking system
• Non-banking finance companies
• The capital market
• Mutual funds
• Overall approach to reforms
• Deregulation of banking system
• Capital market developments
• Consolidation imperative

Now let us discuss each segment seperately.

Financial Markets

In the last decade, Private Sector Institutions played an important role. They grew rapidly in commercial banking and asset management business. With the openings in the insurance sector for these institutions, they started making debt in the market.

Competition among financial intermediaries gradually helped the interest rates to decline. Deregulation added to it. The real interest rate was maintained. The borrowers did not pay high price while depositors had incentives to save. It was something between the nominal rate of interest and the expected rate of inflation.

Regulators

The Finance Ministry continuously formulated major policies in the field of financial sector of the country. The Government accepted the important role of regulators. The Reserve Bank of India (RBI) has become more independant. Securities and Exchange Board of India (SEBI) and the Insurance Regulatory and Development Authority (IRDA) became important institutions. Opinions are also there that there should be a super-regulator for the financial services sector instead of multiplicity of regulators.

The banking system

Almost 80% of the business are still controlled by Public Sector Banks (PSBs). PSBs are still dominating the commercial banking system. Shares of the leading PSBs are already listed on the stock exchanges.

The RBI has given licences to new private sector banks as part of the liberalisation process. The RBI has also been granting licences to industrial houses. Many banks are successfully running in the retail and consumer segments but are yet to deliver services to industrial finance, retail trade, small business and agricultural finance.

The PSBs will play an important role in the industry due to its number of branches and foreign banks facing the constrait of limited number of branches. Hence, in order to achieve an efficient banking system, the onus is on the Government to encourage the PSBs to be run on professional lines.

Development finance institutions

FIs's access to SLR funds reduced. Now they have to approach the capital market for debt and equity funds.

Convertibility clause no longer obligatory for assistance to corporates sanctioned by term-lending institutions.

Capital adequacy norms extended to financial institutions.

DFIs such as IDBI and ICICI have entered other segments of financial services such as commercial banking, asset management and insurance through separate ventures. The move to universal banking has started.

Non-banking finance companies

In the case of new NBFCs seeking registration with the RBI, the requirement of minimum net owned funds, has been raised to Rs.2 crores.

Until recently, the money market in India was narrow and circumscribed by tight regulations over interest rates and participants. The secondary market was underdeveloped and lacked liquidity. Several measures have been initiated and include new money market instruments, strengthening of existing instruments and setting up of the Discount and Finance House of India (DFHI).

The RBI conducts its sales of dated securities and treasury bills through its open market operations (OMO) window. Primary dealers bid for these securities and also trade in them. The DFHI is the principal agency for developing a secondary market for money market instruments and Government of India treasury bills. The RBI has introduced a liquidity adjustment facility (LAF) in which liquidity is injected through reverse repo auctions and liquidity is sucked out through repo auctions.

On account of the substantial issue of government debt, the gilt- edged market occupies an important position in the financial set- up. The Securities Trading Corporation of India (STCI), which started operations in June 1994 has a mandate to develop the secondary market in government securities.

Long-term debt market: The development of a long-term debt market is crucial to the financing of infrastructure. After bringing some order to the equity market, the SEBI has now decided to concentrate on the development of the debt market. Stamp duty is being withdrawn at the time of dematerialisation of debt instruments in order to encourage paperless trading.

The capital market 

The number of shareholders in India is estimated at 25 million. However, only an estimated two lakh persons actively trade in stocks. There has been a dramatic improvement in the country's stock market trading infrastructure during the last few years. Expectations are that India will be an attractive emerging market with tremendous potential. Unfortunately, during recent times the stock markets have been constrained by some unsavoury developments, which has led to retail investors deserting the stock markets.

Mutual funds

The mutual funds industry is now regulated under the SEBI (Mutual Funds) Regulations, 1996 and amendments thereto. With the issuance of SEBI guidelines, the industry had a framework for the establishment of many more players, both Indian and foreign players.

The Unit Trust of India remains easily the biggest mutual fund controlling a corpus of nearly Rs.70,000 crores, but its share is going down. The biggest shock to the mutual fund industry during recent times was the insecurity generated in the minds of investors regarding the US 64 scheme. With the growth in the securities markets and tax advantages granted for investment in mutual fund units, mutual funds started becoming popular.

The foreign owned AMCs are the ones which are now setting the pace for the industry. They are introducing new products, setting new standards of customer service, improving disclosure standards and experimenting with new types of distribution.

The insurance industry is the latest to be thrown open to competition from the private sector including foreign players. Foreign companies can only enter joint ventures with Indian companies, with participation restricted to 26 per cent of equity. It is too early to conclude whether the erstwhile public sector monopolies will successfully be able to face up to the competition posed by the new players, but it can be expected that the customer will gain from improved service.

The new players will need to bring in innovative products as well as fresh ideas on marketing and distribution, in order to improve the low per capita insurance coverage. Good regulation will, of course, be essential.

Overall approach to reforms

The last ten years have seen major improvements in the working of various financial market participants. The government and the regulatory authorities have followed a step-by-step approach, not a big bang one. The entry of foreign players has assisted in the introduction of international practices and systems. Technology developments have improved customer service. Some gaps however remain (for example: lack of an inter-bank interest rate benchmark, an active corporate debt market and a developed derivatives market). On the whole, the cumulative effect of the developments since 1991 has been quite encouraging. An indication of the strength of the reformed Indian financial system can be seen from the way India was not affected by the Southeast Asian crisis.

However, financial liberalisation alone will not ensure stable economic growth. Some tough decisions still need to be taken. Without fiscal control, financial stability cannot be ensured. The fate of the Fiscal Responsibility Bill remains unknown and high fiscal deficits continue. In the case of financial institutions, the political and legal structures hve to ensure that borrowers repay on time the loans they have taken. The phenomenon of rich industrialists and bankrupt companies continues. Further, frauds cannot be totally prevented, even with the best of regulation. However, punishment has to follow crime, which is often not the case in India.

Deregulation of banking system

Prudential norms were introduced for income recognition, asset classification, provisioning for delinquent loans and for capital adequacy. In order to reach the stipulated capital adequacy norms, substantial capital were provided by the Government to PSBs.

Government pre-emption of banks' resources through statutory liquidity ratio (SLR) and cash reserve ratio (CRR) brought down in steps. Interest rates on the deposits and lending sides almost entirely were deregulated.

New private sector banks allowed to promote and encourage competition. PSBs were encouraged to approach the public for raising resources. Recovery of debts due to banks and the Financial Institutions Act, 1993 was passed, and special recovery tribunals set up to facilitate quicker recovery of loan arrears.

Bank lending norms liberalised and a loan system to ensure better control over credit introduced. Banks asked to set up asset liability management (ALM) systems. RBI guidelines issued for risk management systems in banks encompassing credit, market and operational risks.

A credit information bureau being established to identify bad risks. Derivative products such as forward rate agreements (FRAs) and interest rate swaps (IRSs) introduced.

Capital market developments

The Capital Issues (Control) Act, 1947, repealed, office of the Controller of Capital Issues were abolished and the initial share pricing were decontrolled. SEBI, the capital market regulator was established in 1992.

Foreign institutional investors (FIIs) were allowed to invest in Indian capital markets after registration with the SEBI. Indian companies were permitted to access international capital markets through euro issues.

The National Stock Exchange (NSE), with nationwide stock trading and electronic display, clearing and settlement facilities was established. Several local stock exchanges changed over from floor based trading to screen based trading.

Private mutual funds permitted

The Depositories Act had given a legal framework for the establishment of depositories to record ownership deals in book entry form. Dematerialisation of stocks encouraged paperless trading. Companies were required to disclose all material facts and specific risk factors associated with their projects while making public issues.

To reduce the cost of issue, underwriting by the issuer were made optional, subject to conditions. The practice of making preferential allotment of shares at prices unrelated to the prevailing market prices stopped and fresh guidelines were issued by SEBI.

SEBI reconstituted governing boards of the stock exchanges, introduced capital adequacy norms for brokers, and made rules for making client or broker relationship more transparent which included separation of client and broker accounts.

Buy back of shares allowed

The SEBI started insisting on greater corporate disclosures. Steps were taken to improve corporate governance based on the report of a committee.

SEBI issued detailed employee stock option scheme and employee stock purchase scheme for listed companies.

Standard denomination for equity shares of Rs. 10 and Rs. 100 were abolished. Companies given the freedom to issue dematerialised shares in any denomination.

Derivatives trading starts with index options and futures. A system of rolling settlements introduced. SEBI empowered to register and regulate venture capital funds.

The SEBI (Credit Rating Agencies) Regulations, 1999 issued for regulating new credit rating agencies as well as introducing a code of conduct for all credit rating agencies operating in India.

Consolidation imperative 

Another aspect of the financial sector reforms in India is the consolidation of existing institutions which is especially applicable to the commercial banks. In India the banks are in huge quantity. First, there is no need for 27 PSBs with branches all over India. A number of them can be merged. The merger of Punjab National Bank and New Bank of India was a difficult one, but the situation is different now. No one expected so many employees to take voluntary retirement from PSBs, which at one time were much sought after jobs. Private sector banks will be self consolidated while co-operative and rural banks will be encouraged for consolidation, and anyway play only a niche role.

In the case of insurance, the Life Insurance Corporation of India is a behemoth, while the four public sector general insurance companies will probably move towards consolidation with a bit of nudging. The UTI is yet again a big institution, even though facing difficult times, and most other public sector players are already exiting the mutual fund business. There are a number of small mutual fund players in the private sector, but the business being comparatively new for the private players, it will take some time.

We finally come to convergence in the financial sector, the new buzzword internationally. Hi-tech and the need to meet increasing consumer needs is encouraging convergence, even though it has not always been a success till date. In India organisations such as IDBI, ICICI, HDFC and SBI are already trying to offer various services to the customer under one umbrella. This phenomenon is expected to grow rapidly in the coming years. Where mergers may not be possible, alliances between organisations may be effective. Various forms of bancassurance are being introduced, with the RBI having already come out with detailed guidelines for entry of banks into insurance. The LIC has bought into Corporation Bank in order to spread its insurance distribution network. Both banks and insurance companies have started entering the asset management business, as there is a great deal of synergy among these businesses. The pensions market is expected to open up fresh opportunities for insurance companies and mutual funds.

It is not possible to play the role of the Oracle of Delphi when a vast nation like India is involved. However, a few trends are evident, and the coming decade should be as interesting as the last one.

Public Sector Banks In India

Reserve Bank of India (RBI)

The central bank of the country is the Reserve Bank of India (RBI). It was established in April 1935 with a share capital of Rs. 5 crores on the basis of the recommendations of the Hilton Young Commission. The share capital was divided into shares of Rs. 100 each fully paid which was entirely owned by private shareholders in the begining. The Government held shares of nominal value of Rs. 2,20,000.

Reserve Bank of India was nationalised in the year 1949. The general superintendence and direction of the Bank is entrusted to Central Board of Directors of 20 members, the Governor and four Deputy Governors, one Government official from the Ministry of Finance, ten nominated Directors by the Government to give representation to important elements in the economic life of the country, and four nominated Directors by the Central Government to represent the four local Boards with the headquarters at Mumbai, Kolkata, Chennai and New Delhi. Local Boards consist of five members each Central Government appointed for a term of four years to represent territorial and economic interests and the interests of co-operative and indigenous banks.

The Reserve Bank of India Act, 1934 was commenced on April 1, 1935. The Act, 1934 (II of 1934) provides the statutory basis of the functioning of the Bank.

The Bank was constituted for the need of following:

• To regulate the issue of banknotes
• To maintain reserves with a view to securing monetary stability and
• To operate the credit and currency system of the country to its advantage.

Functions of Reserve Bank of India 

The Reserve Bank of India Act of 1934 entrust all the important functions of a central bank the Reserve Bank of India.

Bank of Issue

Under Section 22 of the Reserve Bank of India Act, the Bank has the sole right to issue bank notes of all denominations. The distribution of one rupee notes and coins and small coins all over the country is undertaken by the Reserve Bank as agent of the Government. The Reserve Bank has a separate Issue Department which is entrusted with the issue of currency notes. The assets and liabilities of the Issue Department are kept separate from those of the Banking Department. Originally, the assets of the Issue Department were to consist of not less than two-fifths of gold coin, gold bullion or sterling securities provided the amount of gold was not less than Rs. 40 crores in value. The remaining three-fifths of the assets might be held in rupee coins, Government of India rupee securities, eligible bills of exchange and promissory notes payable in India. Due to the exigencies of the Second World War and the post-was period, these provisions were considerably modified. Since 1957, the Reserve Bank of India is required to maintain gold and foreign exchange reserves of Ra. 200 crores, of which at least Rs. 115 crores should be in gold. The system as it exists today is known as the minimum reserve system.

Banker to Government

The second important function of the Reserve Bank of India is to act as Government banker, agent and adviser. The Reserve Bank is agent of Central Government and of all State Governments in India excepting that of Jammu and Kashmir. The Reserve Bank has the obligation to transact Government business, via. to keep the cash balances as deposits free of interest, to receive and to make payments on behalf of the Government and to carry out their exchange remittances and other banking operations. The Reserve Bank of India helps the Government - both the Union and the States to float new loans and to manage public debt. The Bank makes ways and means advances to the Governments for 90 days. It makes loans and advances to the States and local authorities. It acts as adviser to the Government on all monetary and banking matters.

Bankers' Bank and Lender of the Last Resort

The Reserve Bank of India acts as the bankers' bank. According to the provisions of the Banking Companies Act of 1949, every scheduled bank was required to maintain with the Reserve Bank a cash balance equivalent to 5% of its demand liabilites and 2 per cent of its time liabilities in India. By an amendment of 1962, the distinction between demand and time liabilities was abolished and banks have been asked to keep cash reserves equal to 3 per cent of their aggregate deposit liabilities. The minimum cash requirements can be changed by the Reserve Bank of India.

The scheduled banks can borrow from the Reserve Bank of India on the basis of eligible securities or get financial accommodation in times of need or stringency by rediscounting bills of exchange. Since commercial banks can always expect the Reserve Bank of India to come to their help in times of banking crisis the Reserve Bank becomes not only the banker's bank but also the lender of the last resort.

Controller of Credit

The Reserve Bank of India is the controller of credit i.e. it has the power to influence the volume of credit created by banks in India. It can do so through changing the Bank rate or through open market operations. According to the Banking Regulation Act of 1949, the Reserve Bank of India can ask any particular bank or the whole banking system not to lend to particular groups or persons on the basis of certain types of securities. Since 1956, selective controls of credit are increasingly being used by the Reserve Bank.

The Reserve Bank of India is armed with many more powers to control the Indian money market. Every bank has to get a licence from the Reserve Bank of India to do banking business within India, the licence can be cancelled by the Reserve Bank of certain stipulated conditions are not fulfilled. Every bank will have to get the permission of the Reserve Bank before it can open a new branch. Each scheduled bank must send a weekly return to the Reserve Bank showing, in detail, its assets and liabilities. This power of the Bank to call for information is also intended to give it effective control of the credit system. The Reserve Bank has also the power to inspect the accounts of any commercial bank.

As supereme banking authority in the country, the Reserve Bank of India, therefore, has the following powers:
(a) It holds the cash reserves of all the scheduled banks.

(b) It controls the credit operations of banks through quantitative and qualitative controls.

(c) It controls the banking system through the system of licensing, inspection and calling for information.

(d) It acts as the lender of the last resort by providing rediscount facilities to scheduled banks.

Custodian of Foreign Reserves

The Reserve Bank of India has the responsibility to maintain the official rate of exchange. According to the Reserve Bank of India Act of 1934, the Bank was required to buy and sell at fixed rates any amount of sterling in lots of not less than Rs. 10,000. The rate of exchange fixed was Re. 1 = sh. 6d. Since 1935 the Bank was able to maintain the exchange rate fixed at lsh.6d. though there were periods of extreme pressure in favour of or against

the rupee. After India became a member of the International Monetary Fund in 1946, the Reserve Bank has the responsibility of maintaining fixed exchange rates with all other member countries of the I.M.F.

Besides maintaining the rate of exchange of the rupee, the Reserve Bank has to act as the custodian of India's reserve of international currencies. The vast sterling balances were acquired and managed by the Bank. Further, the RBI has the responsibility of administering the exchange controls of the country.

Supervisory functions

In addition to its traditional central banking functions, the Reserve bank has certain non-monetary functions of the nature of supervision of banks and promotion of sound banking in India. The Reserve Bank Act, 1934, and the Banking Regulation Act, 1949 have given the RBI wide powers of supervision and control over commercial and co-operative banks, relating to licensing and establishments, branch expansion, liquidity of their assets, management and methods of working, amalgamation, reconstruction, and liquidation. The RBI is authorised to carry out periodical inspections of the banks and to call for returns and necessary information from them. The nationalisation of 14 major Indian scheduled banks in July 1969 has imposed new responsibilities on the RBI for directing the growth of banking and credit policies towards more rapid development of the economy and realisation of certain desired social objectives. The supervisory functions of the RBI have helped a great deal in improving the standard of banking in India to develop on sound lines and to improve the methods of their operation.

Promotional functions

With economic growth assuming a new urgency since Independence, the range of the Reserve Bank's functions has steadily widened. The Bank now performs a varietyof developmental and promotional functions, which, at one time, were regarded as outside the normal scope of central banking. The Reserve Bank was asked to promote banking habit, extend banking facilities to rural and semi-urban areas, and establish and promote new specialised financing agencies. Accordingly, the Reserve Bank has helped in the setting up of the IFCI and the SFC; it set up the Deposit Insurance Corporation in 1962, the Unit Trust of India in 1964, the Industrial Development Bank of India also in 1964, the Agricultural Refinance Corporation of India in 1963 and the Industrial Reconstruction Corporation of India in 1972. These institutions were set up directly or indirectly by the Reserve Bank to promote saving habit and to mobilise savings, and to provide industrial finance as well as agricultural finance. As far back as 1935, the Reserve Bank of India set up the Agricultural Credit Department to provide agricultural credit. But only since 1951 the Bank's role in this field has become extremely important. The Bank has developed the co-operative credit movement to encourage saving, to eliminate moneylenders from the villages and to route its short term credit to agriculture. The RBI has set up the Agricultural Refinance and Development Corporation to provide long-term finance to farmers.

Classification of RBIs functions

The monetary functions also known as the central banking functions of the RBI are related to control and regulation of money and credit, i.e., issue of currency, control of bank credit, control of foreign exchange operations, banker to the Government and to the money market. Monetary functions of the RBI are significant as they control and regulate the volume of money and credit in the country.

Equally important, however, are the non-monetary functions of the RBI in the context of India's economic backwardness. The supervisory function of the RBI may be regarded as a non-monetary function (though many consider this a monetary function). The promotion of sound banking in India is an important goal of the RBI, the RBI has been given wide and drastic powers, under the Banking Regulation Act of 1949 - these powers relate to licencing of banks, branch expansion, liquidity of their assets, management and methods of working, inspection, amalgamation, reconstruction and liquidation. Under the RBI's supervision and inspection, the working of banks has greatly improved. Commercial banks have developed into financially and operationally sound and viable units. The RBI's powers of supervision have now been extended to non-banking financial intermediaries. Since independence, particularly after its nationalisation 1949, the RBI has followed the promotional functions vigorously and has been responsible for strong financial support to industrial and agricultural development in the country.

RESERVE BANK OF INDIA ADDRESS
Reserve Bank of India,
Central Office,
Shaheed Bhagat Singh Road,
Mumbai - 400 001.

Easy Banking

This section is fully dedicated to the Tech Banking. A decade before, it was tough to belief that banking secctor will be at a finger tip. Now its possible. A mobile hand set with a connection is the only instrument needed to make a gateway to your banking transaction, the latest innovation of technology.

Apart from the Mobile Banking, including of SMS Banking, Net Banking and ATMs are the major steps taken by the banks in India towards modernisation. With all these devises and systems, there is a complete freedom to experience.

Check your account, transfer your fund, make payments and what more, do anything of everything what has been followed in physical banking since ages. But this time no standing for hours in front of cash counter and no time boundation in withdrawing your own money.

Banking Services for NRIs in India

Almost all the Indian Banks provide services to the NRIs. There are different types of accounts for them. They are:

• Non-Resident (Ordinary) Account - NRO A/c
• Non-Resident (External) Rupee Account - NRE A/c
• Non-Resident (Foreign Currency) Account - FCNR A/c

An Indian resident who is earning forign exchange can also maintain Foreign Currency account in the country with an authorised dealer bank but only to the maximum limit of 50% of such foreign exchange earnings under the Exchange Earners Foreign Currency Account (EEFC) Scheme.

Some of the FAQs given below will make it easy to understand the services provided by banks to the NRIs.

FAQ for NRIs

1. What are the special features of each bank account?
2. Can Non Resident accounts be opened/ operated by the Power of Attorney holder in India, on behalf of the non-resident?
3. What happens to the status of these accounts when the non-resident holder becomes a person, resident in India?
4. What are the various facilities available to NRIs/OCBs?
5. Are NRIs permitted to send remittances outside India out of the assets in India that are inherited by them?
6. Can a person of Indian origin acquire any immovable property in India by way of inheritance?
7. Can NRIs and Overseas Corporate Bodies (OCBs) invest in India?
8. What is the extent and application of Foreign Exchange Management Act (FEMA)?
9. What is the penalty for contravention of FEMA?
10. Can a person of Indian origin resident outside India gift properties acquired earlier in terms of the provisions of FERA/FEMA?
11. Can an NRI account be opened in the name of crew members of shipping companies?

1. What are the special features of each bank account?
   
   The special features are as under:
   
   NRO A/c.: The funds, credited to this account, cannot be repatriated outside India in foreign exchange, without prior permission of the Reserve Bank of India. Interest, earned is eligible for repatriation outside India, net of Indian taxes. The remittance of interest (net of taxes) will be permitted by the authorised dealer who maintains the account, if the account holder makes an application to the authorised dealer, in the prescribed form. No RBI permission is required for remittance of interest.
   
   NRE A/c.: The funds, standing to the credit of this account, as well as interest earned thereon, are remittable outside India in free foreign exchange, without permission of the RBI. The interest income is not subject to Indian Income-tax. Credits to the accounts should be in the form of remittance in foreign exchange from outside India, as well as other funds, which are eligible to be remitted outside India, in free foreign exchange. Funds, emanating from local sources, are not eligible to be credited to these accounts, unless these funds are otherwise remittable outside India, in terms of the existing Exchange Control Regulations.
   
   FCNR A/c.: These accounts can be opened in four foreign currencies:
• Pounds Sterling;
• US Dollars;
• Japanese Yen;
• Euro.

For the purpose of opening an account, remittance in foreign exchange, in the same currency, should be received in India. The accounts can be opened only as fixed deposits, with a minimum maturity of one year and, a maximum maturity of three years. The principal, as well as interest, earned on these accounts, is remittable outside India, in the same currency or, in other convertible currency, as desired by the account holder. The interest, earned on these deposits, is exempt from Indian Income-tax.

2. Can Non Resident accounts be opened/ operated by the Power of Attorney holder in India, on behalf of the non-resident?
   
   The accounts cannot be opened by the Power of Attorney holder in India. However, the latter can operate the accounts for the purpose of local payments to be made on behalf of the non-resident account holder. The Power of Attorney holder is not permitted to make gifts from these accounts and, is not allowed to make remittances outside India.
3. What happens to the status of these accounts when the non-resident holder becomes a person, resident in India?
   
   The accounts are to be re-designed as resident accounts, when the non-resident account holder becomes a person, resident in India. In the case of fixed deposits opened by the account holder, before becoming resident in India, the contracted rate of interest will be paid till maturity of the deposits. Similarly, FCNR deposits will be eligible to be held in respective currencies till maturity of the deposits, even after the non-resident holder become a resident in India. He will, however, cease to get tax exemption on interest on the erstwhile deposits (NRE/FCNR deposits), after he becomes resident in India. In certain situations, it might be advisable for the account holder to convert the account to a Resident Foreign Currency Account Deposit (RFC)
4. What are the various facilities available to NRIs/OCBs?
   
   The facilities available to NRIs/OCBs for making investment in India are as follows:
• opening and maintenance of bank accounts in India;
• investment in shares and securities of Indian companies, government securities, units of domestic mutual funds and ,deposits with Indian companies/firms;
• investment in immovable properties in India;
• investment in proprietorship/partnership concerns in India.

5. Are NRIs permitted to send remittances outside India out of the assets in India that are inherited by them? 
   
   Yes. RBI will consider application from NRIs for remittance of assets, inherited by them in India. Such remittance may be permitted up to US$ 100,000 per year.
6. Can a person of Indian origin acquire any immovable property in India by way of inheritance? 
   
   A person of Indian origin, resident outside India, may acquire any immovable property in India by way of inheritance from a person, resident outside India, who had acquired such property in accordance with the provisions of foreign exchange law in force at the time of acquisition by him or the provisions of Foreign Exchange Management (Acquisition and Transfer of Immovable Property in India) Regulations, 2000. Immovable property, by way of inheritance, can also be acquired by a person of Indian origin resident outside from a person resident in India.
7. Can NRIs and Overseas Corporate Bodies (OCBs) invest in India?
   
   The Government of India has adopted a liberal policy, with respect to investments by NRIs and OCBs in India. Such investments are allowed, both, through the RBI route and also through the Government route, i.e., through the Foreign Investment Promotion Board (FIPB) NRIs and OCBs are permitted to invest up to 100% equity in real estate development activity and civil aviation sectors. Investment, made by the NRIs and OCBs, are fully repatriable, except in the case of real estate, which has a 3 year lock-in period on original investment and, 16% cap on dividend repatriation. For those proposals that do not qualify under the automatic route, Government approval is granted through FIPB.
8. What is the extent and application of Foreign Exchange Management Act (FEMA)?
   
   FEMA extends to the whole of India. It also applies to all branches, offices and agencies outside India, owned or controlled by a person, resident in India. It also applies to any contravention, there under, committed in or, outside India, by any person to whom the Act applies.
9. What is the penalty for contravention of FEMA?
   
   Any person, contravening FEMA, shall be liable, upon adjudication, to a penalty up to three times the sum involved in such contravention, where such amount is quantifiable, or up to Rupees Two hundred thousand, where the amount is not quantifiable. In addition, where such contravention is a continuing one, the person will be liable to further penalty, which may extend to Rupees Five thousand for every day after the first day, during which the contravention continues.
10. Can a person of Indian origin resident outside India gift properties acquired earlier in terms of the provisions of FERA/FEMA?
    
    Yes. A person of Indian origin resident outside India may transfer residential or commercial property in India by way of gift to a person resident in India or to a person resident outside India who is a citizen of India or to a person of Indian origin resident outside India. A Person of Indian origin resident outside India may also transfer by way of gift agriculture land/farm house/plantation property in India to a person resident in India who is a citizen of India.

11.  

Top Banks in India

 

With the advancement of technology and the birth of competition, banks are in the race of becoming the best in the country. With an eye upon customer satisfaction policy they are providing best of the best services with the minimum hazards.

Banks like ABN AMRO introduced banking with a coffee. It made a tie-up with one of the best coffee bar in the country, Barista and remained open till late evening for customers with a setup of a coffee bar in the premises. 

Few banks have introduced world ATM card to make travellers across the globe more safe and secure. What else. Internet and Phone Banking is the call of the day for banks.

In this race towards the best, we have selected top 20 banks in the country from all segment. It is not the ranking of banks but only for general information about the top banks in India. 

Allahabad Bank In India

Allahabad Bank is the oldest public sector bank in India with branches all over India. Allahabad Bank India was established in the year 1865. Apart from serving to domestic customers, Allahabad Bank NRI section also provides a wide range of attractive Deposti Schemes to Non-Resident Indians.

Allahabad Bank of India practices code on Lender's Liability. They are as follows:

• To provide professional, efficient, courteous, diligent and speedy services in the matter of retail lending.
• Not to discriminate on the basis of religion, caste, sex, descent or any of them.
• To be fair and honest in advertising and marketing of Loan Products.
• To provide customers with accurate and timely disclosure of terms, costs, rights and liabilities as regards loan transactions.
• If sought, to provide such assistance or advise to customers applying for loans.
• To attempt in good faith to resolve any disputes or differences with customers through complaint redressal cells within the organization.
• To comply with all the regulatory requirements in good faith.
• To spread general awareness about potential risks in contracting loans and encourage customers to take independent financial advice and not to act only on representation from banks.

Allahabad Bank Branches

Allahabad Bank has more than 1800 branches all over the country. In Uttar Pradesh alone Allahabad Bank has approximately 600 branches and approximately 500 in West Bengal. Allahabad Bank also has 7 days banking branches. They are as under:

Sl.No	Name of Branch	Region
1	Kota	Jaipur
2	Ambabari	Jaipur
3	Alwar	Jaipur
4	Nayapalli	Bhubaneswar
5	Konnagar	Chinsurah
6	Orai	Jhansi
7	Jawaharnagar	Guwahati
8	Nehru Colony , Dehradun	Meerut
9	C.O. Moradabad	Moradabad
10	AMU. Aligarh Br.	Moradabad
11	Gonda	Gonda
12	Sitapur	Sitapur
13	Bahraich	Bahraich
14	Ujriwan, (Gomotinagar)	Lucknow
15	Kanpur Main Br.	Kanpur
16	Gumti No.5	Kanpur
17	Burra Colony	Kanpur
18	Bagh Bazar	R.O.Kol(Urban)
19	J.L.Road, Muzzaffarpur	Muzaffarnagar
20	P.P.Colony, Patna	Patna
21	Noida New	Delhi
22	C.B., Ludhiana	Chandigarh
23	Panch Kula	Chandigarh
24	Sahidnagar	Bhubaneswar
25	Vyapar Vihar , Bilaspur	Bilaspur
26	Guwalior	Bhopal
27	Kalyani Devi	Allahabad
28	C.O. Gorakhpur	Gorakhpur
29	Shiwala Mahant	Mirzapur
30	U.P. College	Varanasi
31	Mukul Bose Road	R.O Kolkata(Metro)
32	K.N.Road, Berhampore	Berhampore
33	Burdwan Main Road.	Asansol

Allahabad Bank Loans

Allahabad Bank has a wide range of loan product for everyone. Some of them are as follows:

• All Bank Saral Loan scheme
• Personal Loan for Pensioners
• Personal Loan for Doctors
• Loan against NSC/KVP
• Housin Finance
• Furnishing Loan
• AllBank Rent
• Car Finance

Allahabad Bank Services

Allahabad Bank gives an exclusive service for outstation cheques. Bank of Allahabad guarantees 7 Days outstation cheques to be credited from its 180 locations. This service is exclusively given to a customer without any extra charge. Along with this service Allahabad Bank in India also provides the following services:

• All Ayushman Bima Yojana
• All Bank-Property
• Cash Management Services
• Kisan Credit Card
• ATM
• Flexi-Fix Deposit
• Gold Deposit
• SSI Finance
• Gold Card Scheme for Exporters
• Kisan Shakti Yojana
• Bancassurance & Mutual fund
• Visa Debit cum ATM Card

Allahabad Bank Head Office
2 N.S. Road Kolkata - 700001
033-22319144
Email: gmpd@cal.allahabadbank.co.in

Allahabad Bank Website
www.allahabadbank.com/

Bank of Baroda

Bank of Baroda started its operation in the year 1908 in Baroda though its Corporate Centre is in Mumbai now. Its mission is "to be a top ranking National Bank of International Standards committed to augment stake holders' value through concern, care and competence".

Bank of Baroda Branches

No. of branches in India	2700
No. of computerised branches	2176
No. of branches connected with leased lines	450
No. of branches operating e-payment product	340 in 53 centres
No. of branches serving BOBCASHREACH	58 in 53 centres for corporates
Tele-Banking, PC-Banking and Any Branch Banking services	291 in following 7 cities Chennai Bangalore Hyderabad Pune Mumbai Ahmedabad Delhi
SMS and WAP based mobile banking services	423 branches
Inter bank electronic transfer funds (ETF)	206 branches

ATM / Debit Card services of Bank of Baroda

No. of branches with ATMs	250
No. of networked ATMs	219
No. of VISA ATMs in India for use	15,000
No. of VISA ATMs around the world for use	8,50,000
No. of POS in India for card acceptance	1,00,000
No. of POS terminals globally	13 million
No. of Debit Cards customers	Approximately 3 lakhs

Take Note : Bank of Baroda has joined National Financial Switch (NFS) of Institute of Development and Research in Banking Technology (IDRBT) to enable customers to use ATMs of other Banks, connected to NFS, at a lower cost. It also allows Master Card and VISA card holders to use its ATMs.

BOBCASHSEARCH

A product by Bank of Baroda to enable electronic transfers/ cash remittances at designated branch through specialised networm. The facility makes available funds or credits in the customers account on the same day.

Bank of Baroda's Equity

Bank of Baroda returned the Govt. Capital of Rs 381 crores in December 1996 and became one of the early birds to tap the equity market. Today its equity capital is Rs 294 crores of which one third is held by non-Govt. Investorsa like employees, retail investors, bank & financial institutions, the FIIs and OCBs, Mutual Funds and some insurance companies.

The Bank has set up an Investors Services Department at its Head Office. The address and other details as follows:

The Company Secretary
Bank of Baroda
Investor's Service Department
Suraj Plaza I, 4th Floor,
Sayajigunj, Baroda.
Tel : 0265-2362225 (Direct)
0265-2361852 Ext : 262
Fax : 0265 - 2362914
E-Mail : companysecretary@bankofbaroda.com

Bank of Baroda Deposit Services

Bank of Baroda has three deposit scheme. They are as follows:

• Fixed Deposits
• Current Deposits
• Savings Deposits

Bank of Baroda Loans

Bank of Baroda has the following bouquet of loan solutions for its customers diverse requirements.

• Housing Loan
• Home Improving Loan
• Education Loan
• Car Loan
• Two Wheeler Loan
• Consumer Durables Loan
• Personal Computers Loan
• Personal Loan
• Marriage Loan
• Festival Loan
• Advance Against Securities
• Overdraft Against Property
• Loan to Pensioners
• Loan to Defence Pensioners
• Professional Loan
• Traders Loan
• Loan Against Rent Receivables

Bank of Baroda Key Services

Apart from the different types of Loan Solutions, Deposits, Credit and Debit Cards, Bank of Baroda also offers other services to make financial dealings easy and convenient for customers. They are as follows:

• Remittances (Baroda Money Express)
• Collection Services
• ECS (Electronic Clearing Services)
• Government Business (PPF, DSRGE, Tax Collections and Savings Bonds)

Bank of Baroda NRI/OCB services

The NRIs/OCBs are granted the following facilities by Bank of Baroda

• Maintenance of Bank accounts in India
• Investments in securities/shares of, and deposits with, Indian firms/companies.
• Invetsments in immovable properties in India.

BoB Credit Card Customer Relation

A successful business depends upon long lasting relationship with customers. Bank of Baroda has setup a separate Customer Grievances and Redressal Cell to take care of its customers enquiries, queries and complaints.

Corporate Centre
Baroda Corporate Centre, Plot No - C-26, G - Block,
Bandra - Kurla Complex, Bandra (East), Mumbai-400051
Ph. : 022-6698 5000- 04
Fax. : 022-2652 3500

E-Mail Support
customerservice@bankofbaroda.com

Bank Of India

Bank of India, founded on 7th September in the year 1906 was nationalised along with 13 other banks in July 1969. Then its paid-up capital was Rs.50 lakh with only 50 employees and the only office in Mumbai.

Today Bank of India has been spread with 2594 branches including 93 specialised branches controlled by 48 Zonal Offices.

Bank of India came up with its maiden public issue in the year 1997 and the total number of shareholders stands to 3,17,890 as on 30/06/2004.

Bank of India was the first fully computerised branch among the nationalised banks with ATM facility at the Mahalaxmi Branch, Mumbai is the year 1989.

It is an association that has blossomed into a joint venture with BSE, called the BOI Shareholding Ltd. to extend depository services to the stock broking community.

Bank of India abroad

Bank of India was the first Bank in India to open branch office outside the country, at London, in 1946, and even it is the first to open a branch office in Europe, Paris in 1974.

The Bank has sizable presence abroad, with a network of 21 branches (including three representative office ) at key banking and financial centres viz. 

• London
• New York
• Paris
• Tokyo
• Hong-Kong
• Singapore

The international business accounts for around 20.10% of Bank's total business.

Bank of India Core Banking

Internet Banking	Viewing of all own accounts
	Quick view of transactions
	Query on Transactions / pending instruments
	Account statement download
	Details of Lien on Operative or Term Deposit Accounts
	Details of Loan Account
	Nominee Details
	Submit various like ATM/Debit Card request
	Cheque Book Request
	Issuance of Demand Draft Request
	Funds Transfer between own accounts
	Create and Send Mail to Relationship Manager
	Stop Payment Instructions
	Details of TODs
Phone/ TeleBanking	Bank Product related information
	Linking multiple account
	Last 10 transactions played
	Fax on Demand for last 15 transactions
	Stop Payment Instructions
	Cheque Status
	ATM location details
	Request for Cheque Book
	Request for Statement of account
	Forex Rates played and request to send the rates by Fax
SMS Banking	Balance Enquiry
	Cheque Book Request
	Mini Statement of last 5 transactions
Utility Payment	Register for select Utility Service Providers for periodic automatic On-line Payments

Head Office 
BANK OF INDIA, STAR HOUSE C - 5, "G" Block,
Bandra Kurla Complex, Bandra (East), Mumbai 400 051
Ph: . 022-66684444
Email: god@bankofindia.co.in
Website: http://www.bankofindia.com

Bank of Maharashtra

Bank of Maharashtra was registered in the year 1935 with an authorized capital of Rs 10.00 lakh. It is also known as a common man's bank. After nationalization in 1969, it expanded rapidly. According to data till 31st March 2004, it has 1276 branches all over India. It is one the largest network of branches by any Public sector bank in the state of Maharashtra.

Deposit Policy Bank of Maharashtra 
One of the important functions of Banks is to accept deposits from the public for further lending. Bank of Maharashtra have the following deposit policy:

• Demand Deposits
• Saving Deposits
• Term Deposits
• Notice Deposits
• Current Account

Add-on services of Bank of Maharashtra
Apart from the regular and routinous services of Bank of Maharashtra, it also takes active part in the welfare of the community with its services for the society. These services are fulfilled under its fully owned subsidiary, The Maharashtra Executor & Trustee Co. Ltd., established in 1946. The range of services are as follows:

Executor of Will 

• It drafts will for its customers and keep it in safe custody.
• It realizes and collects the property of its customers from Banks, Companies, Mutual Funds, Unit Trust etc. by complying with varying formalities & procedures.
• It holds the property for the benefit of the customers near and dear ones as per the wishes ensuring proper utilization and perseverance with full care and prudence.
• Roposes the property in the hands of those desired person according to the wishes of customers in true sense.

Management of Private Trust

• It gives guidance with information in making Private Trust in case the dependents are incapable of taking proper care of the property due to mental incapacity, physical disability, insufficient age, etc. 
• It acts as Managing Trustee of such trusts either as sole Managing Trustee or with other Advisory Trustees.
• As Trustee, it functions in the following ways:
• Keep custody of the property
• Invest, reinvest, collect interests / dividends
• Makes periodical payments
• Pay for special requirements
• Distributes property as per Trust deed

Management of Public Charitable Trusts
It provides the following services at times when somebody desires to donate part of his/her estate for social cause:

• Guides for the formation of Public Charitable Trust.
• Drafts Trust Deeds
• Register the trust with Charity Commissioner
• Obtains recognition for the Trust under Income Tax Act.
• Keep accounts and get them audited annually
• Files periodical returns and statements with concerned authorities
• Calls upon meetings of the Advisory Trustees and maintain the minute book

Management of Investments and House Properties as Attorney
When somebody is miles away from hie/her moveable or immovable properties, Bank of Maharashtra takes care of it after getting power of attorney to manage the property. It functions in the following ways:

• Keep safe custody of the securities
• Collects rent and interest
• Invest and reinvest surplus as per the directions of the owner of the property
• Pay taxes
• Pay other outgoings, like telephone bills, electricity bills, society charges, etc.
• Maintain the house property by undertaking general repairs for wear and tear.

Guardianship of Minors' Property
Bank of Maharashtra takes care of minors property when their parents have died. It acts as a Court Guardian and manage the property of minors till they attain majority positioon under the directions of the Court.

Services through Telebanking

The following services are provided by Bank of Maharashtra through Telebanking:

Online Activity

• Balance Enquiry
• Details of last 5 transactions in the a/c
• Cheque enquiry
• Cheque Book request
• Instructions for stop payment of cheques
• Deposits Interest Rates Enquiry
• Fax back statement of a/c

Offline Activity

• Balance Enquiry
• Cheque Book Request
• Rates Enquiry

Regional Offices of Bank of Maharashtra

The regional offices of Bank of Maharashtra are located in the following cities:

• Hyderabad
• Dispur
• Patna
• Rajpur
• Delhi
• Panaji
• Gandhinagar
• Chandigarh
• Shimla
• Srinagar
• Ranchi
• Bangalore
• Thiruvananthapuram
• Bhopal
• Mumbai
• Bhubaneshwar
• Jaipur
• Chennai
• Lucknow
• Dehradun
• Kolkata

Head Office
"Lokmangal" 1501, Shivajinagar, Pune - 411005
Phone No: (020) 25532733/34/35/36, (020) 25532745/46/47
www.bankofmaharashtra.in/ 

Canara Bank In India

Canara Bank in India has a history of nine decades and is the largest public sector banks in India. Canara Bank India has a deposit advance base of Rs.640 bn and Rs 332 bn (figure in the year 2002).

Canara Bank of India has a total of 47,843 employees and is spread with 2409 branches throughout the country. Canara Bank India has an exposure to petroleum, engineering, infrastructure, factoring, investment management, venture capital, home finance and securities.

Canara Bank entered Forex arena in 1953 with the opening of its first Foreign Exchange Department in Mumbai. The Bank has 5 forex dealing rooms located in Mumbai, New Delhi, Calcutta, Chennai and Bangalore in India and one in London branch. Canbank provides a wide range of services and products like sale and purchase of 7 world currencies, swap currency and forward bookings.

Canara Bank Loan

Canara Bank provides provides loans to almost every section of the society.
Some of the loans are mentioned as under:

• Agriculture & Rural Credit
• Kisan Credit
• Loans for AgriClinic
• Minor Irrigation Loans
• Farm Machinery Loans
• Farm Development Loans
• Vehicle Loan for Agriculturists
• Loan for Plantation Crops
• Loan for Marine Fisheries
• Loan for Inland Fisheries
• Loan for Sericulture
• Loan for Purchasing Agricultural Land
• Loan for Poultry
• Export Credit for Agro Products
• Other Agricultural Loans
• Loans to SSIs
• Charter for SSIs

Canara Bank for Women

The Centre for Entrepreneurship Development for Women was established by Canara Bank in India at the Bank's Corporate Office, Bangalore during the year 1988 with an objective of assisting the potential women entrepreneurs to select income generating activities and starting ventures of their own.

Subsequently 9 such CEDs were opened and are functioning at Circle Offices situated at various State Capitals. The CED at corporate office brings out a newsletter VIKAS every bi-monthly.

Mahila Banking branch:

An exclusive branch for women and Mahila banking division - an exclusive division for women within a branch opened, which is the 1st of kind in the banking industry.

Details are enlisted below:

• Mahila Banking Branch, Jayanagar , Bangalore, Karnataka
• Mahila Banking Division, Mandipet Branch, Davangere, Karnataka
• Mahila Banking Division, M G Road Branch, Agra, UP
• Mahila Banking Division, N V Street Branch, Madurai, Tamilnadu
• Mahila Banking Division, West Palace Road, Thrissur, Kerala
• Mahila Banking Division, West Hill, Kozhikode, Kerala
• Mahila Banking Division, Shimoga Main Branch, Karnataka

These specialised branch and divisions offer all banking services to women.

Objectives:

• To identify, select and train women Entrepreneurs.
• To conduct EDPs and Skill development programmes (EDPs) for different target groups.
• To assist potential Women Entrepreneurs to start/establish/run an Enterprise professionally.
• To guide existing entrepreneurs to improve the working and modernisation of an existing unit.
• To co-ordinate with Government/Voluntary organisations engaged in promoting entrepreneurship among women.
• To offer counselling services to the Entrepreneurs existing as well as new.
• To assist in the formation of self-help groups.

Canara Bank Shares

Canara Bank Shares are listed at Bangalore, Mumbai and National Stock exchanges.

The Bank has appointed the under mentioned as its share transfer agent to whom communications regarding change of address, change in Bank Mandate, transfer of shares , Mandate for ECS etc. should be addressed.

M/s. Karvy consultants ltd
46, Avenue 4
Street No.1
Banjara Hills
Hyderabad- 500 034

Interms of SEBI guidelines, the Registrar and Transfer agent of the Bank is extending the facility of simultaneous transfer -cum dematerialisation of shares to the investors. On transfer of shares in the name of the transferee , they are being apprised to submit letters to their depository participants for dematerialisation of shares. On receipt of Demat request forms, the shares are dematerialised and confirmation through electronic mode is sent. If the demat request number is not received within a period of 30 days, the duly transfered share certificate is despatched to the transferee.

Canara Bank Share holding pattern are as below:

Government of India	Rs.300.00 Crs	73.17%
Mutual Funds/Other Institutions	Rs. 23.56 Crs	5.75%
Private Corporate Bodies	Rs. 13.64 Crs	3.33%
Public	Rs. 72.80 Crs	17.75%
TOTAL	Rs. 410.00 Crs	100%

Names of Depositories for Dematerialisation are:

• National Securities Depository Ltd (NSDL)
• Central Depository Services (India) Ltd (CDSL)

Canara Bank India has entered into an agreement with National Securities Depository Ltd and Central Depository Services (India) Ltd as an issuer company for Dematerialisation of Bank shares. In accordance with the directions of the SEBI, trading in Canara Bank Shares by all categories of Investors is only be permitted in dematerialised form.

Canara Bank Public Issue

Canara Bank of India is one of the largest public sector banks in the country with a deposit and advances base of Rs 640 bn and Rs 332 bn respectively in 2002. The bank's share of total public sector deposits in FY01 stood at 7.5% combined with a 7.9% share in total PSU advances. Deposits and advances have grown at a CAGR of 11% and 15% respectively over the last five years.

Canara Bank also has diversified into other financial areas like factoring, investment management, venture capital, home finance and securities trading through various subsidiaries.

The two major objectives of the public issue are:

• Augmenting long-term resources of the bank.
• To meet future capital adequacy requirements. The capital adequacy ratio of the bank as of March 2002 was 11.9%, which would go up after the public issue.

Canara Bank profile of one decade is as follows:

Rs. in Crore

	1994-95	1995-96	1996-97	1997-98	1998-99	1999-2000	2000-01	2001-02	2002-03	2003-04
Number of Branches	2136	2192	2262	2312	2379	2397	2405	2409	2424	2469
Capital	590	485	485	578	578	578	578	578	410	410
Reserves	1144	1446	1564	1725	1835	2018	2237	2894	3739	4842
Deposits	22475	26243	31445	38045	41959	48001	59070	64030	72095	86345
Quantum Increase	2636	3768	5202	6600	3914	6042	11069	4960	8065	14250
% Increase	13.29	16.77	19.82	20.99	10.29	14.4	23.06	8.4	12.6	19.77
Non-Resident Deposits	2953	3879	4984	6302	7589	8918	9877	11358	12482	12909
Foreign Business Turnover *	20172	26438	27741	34238	39859	53634	61119	59333	65676	67347
Advances (Net)	10878	13096	14413	16825	19530	23547	27832	33127	40472	47639
Advances to Priority Sector	4125	4892	5702	6735	7034	7667	9139	10536	14604	19580
Export Credit	2065	2434	2603	2813	2789	3007	3517	3672	4429	5497
Total Number of Staff	53327	54044	54316	54703	55097	55363	48257	47796	47566	47613
Total Income	2801	3382	3869	4431	5319	5687	6536	7799	8170	9080
Total Expenditure	2597	3129	3721	4228	5094	5451	6251	7058	6173	6221
Operating Profit	552	651	654	673	957	923	1131	1656	1997	2859
Net Profit	204	253	147	203	225	236	285	741	1019	1338

Apart from the above mentioned loans, Canara Bank Housing Loans are also served to its customers.

Canara Bank Branches and Offices

In India

Canara Bank of India has a network of 2508 branches, spread over 25 States/4 Union Territories of the country and, one overseas branch at London, which are administered through

• Head Office at Bangalore
• 13 Circle Offices and 1 International Division
• 38 Regional Offices

Abroad 

Canara Bank established its International Division in 1976, to supervise the functioning of its various foreign departments. To give the required thrust to foreign exchange business expecially exports and to meet the requirements of NRIs.

The Bank has its presence abroad, as under:

• Canara Bank London, UK ( branch)
• Indo Hong Kong International Finance Co. Ltd., Hong Kong ( subsidiary)
• Canara Bank Moscow (representative office)
• Al Razouki Intl. Exchange Company, Dubai, UAE. (Secondment agreement and DD drawing facility on Canara Bank)
• Eastern Exchange Establishment. Doha, Qatar. (Management agreement and DD drawing facility on Canara Bank).

In addition, following Exchange Companies have DD drawing arrangement on Canara Bank

• Al Fardan Exchange Company, Abu Dhabi, UAE.
• UAE Exchange Center, Abu Dhabi, UAE.
• Leela Megh Exchange Company, Dubai, UAE
• Thomas Cook Al Rostamani Exchange Co. Dubai, UAE
• Kuwait Bahrain Intl. Exchange Co. Kuwait
• Musandam Exchange, Muscat, Oman
• Laxmi Das Tharia Ved Exchange Co., Muscat, Oma

Website of Canara Bank
www.canarabank.in/

 Central Bank of India  |  Corporation Bank  |  Dena Bank  |  IDBI Bank  |  Indian Bank  |  Indian Overseas Bank  |  Oriental Bank of Commerce  |  Punjab & Sind Bank  |  Punjab National Bank  |  State Bank of India  |  Syndicate Bank  |  UCO Bank  |  United Bank of India  |  Union Bank of India  |  Vijaya Bank etc.

State Bank of India

State Bank of India (SBI) was nationalised in July 1955 under the SBI Act of 1955. Seven banks of SBI formed subsidiary and was nationalised on 19th July, 1960.

The State Bank of India is India's largest commercial bank and is ranked one of the top five banks worldwide. It serves 90 million customers through a network of 9,000 branches and it offers -- either directly or through subsidiaries -- a wide range of banking services.
The services of SBI Bank 

• Personal Banking
• Gold Banking
• NRI Banking
• International Banking
• Corporate Banking
• Small Scale Industries
• Small Business Finance
• Rural Banking
• Government Business
• Home Loans

SBI Credit Card

The SBI Credit Card offers a Classic VISA card duly acceptable in India and Nepal. It transfers all the advantages provided by the VISA Card. The present eligibilty for applying for the SBI Credit Card is Rs. 75,000 for salaried and Rs. 60,000 p.a. for businessmen (kindly verify the rate with SBI before applying). 

SBI Credit Card is acceptable over 1,05,000 merchants in India and Nepal. The SBI Credit Card is accepted to 117 cashpoint locations in 57 cities from Leh to Port Blair. The daily withdrawl limit is Rs. 10,000.

SBI Credit Card comes with an insurance of Rs. 2 lakhs on road and Rs. 4 lakhs by air.

SBI Central Office

State Bank of India, 
State Bank Bhawan, 
8th floor, Madame Cama Road, 
Mumbai-400 021, 
Telephone No. 22029456 or 22029451, 
Fax no. 22885369. 

SBI Bank Websites

Global :	www.statebankofindia.com
General :	www.sbi.co.in
Mutual Fund :	www.sbimf.com
Online Banking :	www.onlinesbi.com
Capital market :	www.sbicaps.com
Card :	www.sbicard.com
SBI Commercial & International Bank Ltd. :	www.sbici.com

Punjab National Bank

Punjab National Bank with 4497 offices and the largest nationalised bank is serving its 3.5 crore customers with the following wide variety of banking services:

• Corporate banking
• Personal banking
• Industrial finance
• Agricultural finance
• Financing of trade
• International banking

Punjab National Bank has been ranked 38th amongst top 500 companies by The Economic Times. PNB has earned 9th position among top 50 trusted brands in India.

Punjab National Bank India maintains relationship with more than 200 leading international banks world wide. PNB India has Rupee Drawing Arrangements with 15 exchange companies in UAE and 1 in Singapore.

PNB Online

Punjab National Bank of India is also a member of SWIFT and more than 150 PNB Branches are connected with terminals in Mumbai. It promotes "Any Time, Any Where Banking".

PNB offers Internet Banking services for both to the Corporates and Individuals. It provides 24 hours, 365 days banking from the PC of the user. A user can operate anytime and from anywher its accounts. The following are some of the services available online:

• Access to account
• Complete details of transactions and statement of account
• Online information of deposits, loans overdraft account etc.
• Online Payment Facility for railway reservation through IRCTC Payment Gateway Project
• Online Utility Bill Payment Services which allows Internet Banking account holders to pay their telephone, mobile, electricity, insurance and other bills anytime from anywhere from their desktop.

Punjab National Bank Card user can buy goods and enable services from 45,000 merchant outlet in India and can withdraw cash from over 4500 ATMs with its own 450 ATMs.

Punjab National Bank Branches

Punjab National Bank has its Branches in all the 7 metropolitan and cosmopolitan cities in Inadi namely New Delhi, Mumbai, Calcutta, Chennai, Bangalore, Hyderabad and Ahmedabad. It even has its branches in small town in both urban as well as rural areas.

PNB is always focussing on expanding abroad and till date has identified some emerging economies abroad. They are in few of these places.

• Almaty
• Kazakhktan
• Shanghai
• China
• London
• Kabul
• Afghanistan

Punjab National Bank Housing Loan

Any individual can avail Punjab National Bank Housing Loan for any of the following purpose:

• For construction of house.
• For purchase of house/ flat.
• For purchase of house/ flat from the original allottee, i.e. on First Power of Attorney basis.
• For carrying out repairs/ renovation/ additions/ alterations in the existing house.

Approximately 80% of the cost of project is sanctioned by PNB Housing Finance, subject to a maximum of Rs. 50 lac. In case of carrying out repairs/ renovation/ additions/ alterations in the existing house, the ceiling is Rs. 5 lac. The loan is available for a period of 5 years to 20 years or before the borrowers attain the age of 65.

Interest of Punjab National Bank Home Loan is charged on reducing balance and the amount to be sanctioned depends upon the repaying capability of the borrower.

The following securities are required by the cell of PNB Housing Loan:

• Mortgage of property for which finance is being given.
• In case of purchase of house flat from housing board/ society where mortgage cannot be created immediately, a tripartite agreement shall be executed amongst the housing board/society, borrower and the Bank.
• In case of purchase of house/ flat on first power of attorney, additional security by way of mortgage of some other property or pledge of Bank's Fixed Deposit Receipt/ LIC policy/ Govt. securities has to be provided.
• Suitable third party guarantee acceptable to the Bank which may include guarantee from family members/ other relatives.

PNB Mutual Fund

PNB Mutual Fund services are distributed under the scheme of Principal PNB Asset Management Company from its assigned branches. The varieties of Punjab National Bank Mutual Fund are as under:

• Principal Growth Scheme
• Principal balanced Fund
• Principal Income Fund
• Principal Income Fund - Short Term Debt
• Principal Cash management Fund
• Principal Index Fund
• Principal government Securities Fund

PNB Office Addresses

Head Office
Punjab National Bank
Street 7, Bhikaji Cama Place
New Delhi 110066, India
Tel : 91-11-26196486, 26102303
e-mail : website@pnb.co.in
www.pnbindia.com

For ATM related queries
Punjab National Bank
ATM Card Centre,
5, Sansad Marg
New Delhi - 110001
Tel : 91-11 - 23352019

24 hours toll free PNB Call Centre number
1600 12 2222

Syndicate Bank

Syndicate Bank was established in 1925 in Udupi in coastal Karnataka with a capital of Rs.8000/- The bank collected as low as 2 annas daily at the doorsteps of the depositors through its Agents under its Pigmy Deposit Scheme started in 1928. This scheme is the Bank's brand equity today and the Bank collects around Rs. 2 crore per day under the scheme.

The Bank is well equipped in the areas of information technology, knowledge and competition. The Bank has launched an ambitious technology plan called Centralised Banking Solution (CBS) whereby 200 of their strategic branches with their ATMs are being networked nationwide over a 3 year period.

Syndicate Debit / ATM Card

Syndicate Bank has introduced Global Debit Card in tie up with M/s VISA International. The salient features of the card are as follows :

• It is accepted in over 5000 ATMs in India.
• It is accepted to 56000 Merchant Establishments in India.
• It is accepted by 8,50,000 ATMs worldwide and support cash withdrawal in local currency while the account is debited in Rupees.
• Golbally 10 million Merchant Establishments accepts the card.
• It brings rewards whenever it is used. The rewards are subject to various promotional schemes launched by VISA / Bank from time to time.

Syndicate Credit Card

Types of Credit Cards
Syndicate Bank issues two types of photo cards. They are as mentioned:

• Classic Card
• Gold Card

Features of the Credit Cards

• SyndicateBank Global Credit Card is issued in tie up with VISA.
• It is acceptable at over 8000 ATMs in India and over 8.5 Lakh ATMs across the Globe.
• SyndicateBank Global Credit Card is accepted at over 1,10,000 Merchant Establishments in India and over 2 Crore Merchant Establishments across the Globe.
• Revolving Credit facility with minimum payment due of 10% of balance.
• Free accident insurance cover of 2-5 Lakhs.
• Cash withdrawal facility of upto 10% of the credit limit through their ATMs.
• Rewards points of one point for every Rs 100 spend with the Card.
• Limited lost card liability of maximum Rs 1000/-
• Add on Cards to near relatives such as spouse, father, mother, brother, sister, son, daughter.

Charges of Credit Cards

Fee Structure	Classic	Gold
Entrance	100	500
Annual	300	500
Add on Card	150	250

Syndicate Bank NRI Services

Syndicate Bank offers the following services to NRIs:

• Non-resident (External) Rupee Accounts (NRE A/cs.)
• Non-resident (Ordinary) Rupee Accounts (NRO A/cs.)
• Foreign Currency Non-resident Accounts (FCNR A/cs)
• Resident Foreign Currency Account (RFC A/cs.)

Syndicate Bank Utility Bill Payment

Syndicate Bank also supports Utility Bill Payment Facility through Internet Banking. This service is available for the customers of Core Banking Branches like as mentioned below :

• Bangalore
• Mumbai
• New Delhi

The facility is provided through a tie-up with M/s IndiaIdeas.com Ltd. and it is now free of charges.

To non-customer and to Non Core Banking Branch, the facility is provided through SyndBillPay - Utility Bill Payment Facility and through 'AUTOPAY' mode.

Syndicate Bank Investor Relation Centre

Syndicate Bank had set up its Investor Relations Centre at Bangalore. The shareholders may contact the Company Secretary, Investor Relations Centre at the following address.

SyndicateBank,
Corporate Office,
Investor Relations Centre,
SyndicateBank Building,
2nd Cross, Gandhinagar,
BANGALORE - 560 009
Phone: 080-22283030
E-mail: inrc@syndicatebank.net 

Registrar And Share Transfer Agents of the Bank

The Bank has appointed M/s. Karvy Computershare Pvt. Ltd, Hyderabad as its Registrar And Share Transfer Agents. Share holders may contact Registrar And Transfer Agents of the Bank at the following address. 

Asst.General Manager 
UNIT: SYNDICATEBANK 
M/s. Karvy Computershare Pvt. Ltd., 
46, Avenue 4, Street No.1 
Banjara Hills, 
HYDERABAD - 500 034 
Phone No. 040-23312454 / 23320751 
Fax: 040-23311968 
www.syndicatebank.in

Syndicate Bank 24 Hours Helpline

Manipal - 576104, (Udupi Dist), Karnataka, India
Ph no: 0820-2571181 to 2571196 (16 lines)
Email: hogad@syndicatebank.co.in 

IDBI Bank (Other Public Sector-Indian Banks)

Industrial Development Bank of India (IDBI) is the tength largest bank in the world in terms of development. The National Stock Exchange (NSE), The National Securities Depository Services Ltd. (NSDL), Stock Holding Corporation of India (SHCIL) are some of the institutions which has been built by IDBI. IDBI is a strategic investor in a plethora of institutions which have revolutionized the Indian Financial Markets. 

IDBI Bank, promoted by IDBI Group started in November 1995 with a branch at Indore with an equity capital base of Rs. 1000 million.

Main functions of IDBI

IDBI is vested with the responsibility of co-ordinating the working of institutions engaged in financing, promoting and developing industries. It has evolved an appropriate mechanism for this purpose. IDBI also undertakes/supports wide-ranging promotional activities including entrepreneurship development programmes for new entrepreneurs, provision of consultancy services for small and medium enterprises, upgradation of technology and programmes for economic upliftment of the underprivileged. 

IDBI's role as a catalyst

IDBI's role as a catalyst to industrial development encompasses a wide spectrum of activities. IDBI can finance all types of industrial concerns covered under the provisions of the IDBI Act. With over three decades of service to the Indian industry, IDBI has grown substantially in terms of size of operations and portfolio. 

Developmental Activities of IDBI 

Promotional activities

In fulfilment of its developmental role, the Bank continues to perform a wide range of promotional activities relating to developmental programmes for new entrepreneurs, consultancy services for small and medium enterprises and programmes designed for accredited voluntary agencies for the economic upliftment of the underprivileged. These include entrepreneurship development, self-employment and wage employment in the industrial sector for the weaker sections of society through voluntary agencies, support to Science and Technology Entrepreneurs' Parks, Energy Conservation, Common Quality Testing Centres for small industries. 

Technical Consultancy Organisations

With a view to making available at a reasonable cost, consultancy and advisory services to entrepreneurs, particularly to new and small entrepreneurs, IDBI, in collaboration with other All-India Financial Institutions, has set up a network of Technical Consultancy Organisations (TCOs) covering the entire country. TCOs offer diversified services to small and medium enterprises in the selection, formulation and appraisal of projects, their implementation and review. 

Entrepreneurship Development Institute

Realising that entrepreneurship development is the key to industrial development, IDBI played a prime role in setting up of the Entrepreneurship Development Institute of India for fostering entrepreneurship in the country. It has also established similar institutes in Bihar, Orissa, Madhya Pradesh and Uttar Pradesh. IDBI also extends financial support to various organisations in conducting studies or surveys of relevance to industrial development.

Website of IDBI
www.idbibank.com

Union Bank of India

Union Bank of India was inaugurated by Mahatma Gandhi eight decades ago. Union Bank of India is having more than 600 branches and extension counters all over the country. Nearly 351 ATMs are installed. Online Tele banking facility is availble for its customers.

Today there are more than 26,000 employees in Union Bank of India.

In addition to regular banking facilities of Union Bank of India, today customer can also avail variety of other services like cash management service, insurance, mutual funds, Demat from the Bank.

Union Bank of India is a Public Sector Unit with 60.85% Share Capital held by the Government of India.

Key Performance figures of Union Bank of India for March 2005

• Union Bank of India proposes a total dividend of 35% for 2004-05.
• Total business crosses the landmark figure of Rs.1 lakh crores.
• Bank posted a net profit of Rs.719 crores for the year ended March 2005.
• Operating profit for the year ended March 2005 was Rs.1, 573 crores showing a growth of 6.07%
• Capital Adequacy stands at 12.09% as of March 2005.
• Earnings per share at Rs.15.64.
• Deposits at Rs. 61,822 crores.
• Advances Rs.41, 103 crores.
• Net Interest Margin is 3.31%.
• Cost of Deposits have come down from 5.64% in March'04 to 4.97% in March 05.
• Yield on Advances which was 9.03% in the year 2004 fell to 8.33% in the year 2005
• Yield on Investment declined from 9.00% in March 2004 to 8.20% in the year under report.
• The Ratio of Net NPA to Net Advances has improved from 2.87% in 2004 to 2.64% in 2005

Union Bank of India IPO

Union Bank of India came out with its Initial Public Offer (IPO) in August 20, 2002 and 39.15 % of Share Capital is presently held by Institutions, Individuals and Others.

Union Bank of India NRI

NRI can open Non-Resident Ordinary (NRO) Account in Union Bank of India. The schemes provided by Union Bank of India to open NRO account are as follows:

Opening of Account And Sources of Credit

• By redesignating an existing resident account, on attaining NRI Status.
• With funds remitted from abroad through normal banking channels.
• By surrender of Foreign Currency(FC)/ Foreign Currency Travellers' Cheques (FCTC) to the bank by the account holder in person while on a temporary visit to India subject to CDF rules. Third party TCs not permitted.
• By transfer of funds from an existing Non-resident account. (FCNR / NRE / NRNR accounts.)

Types of Acounts

• Savings Bank
• Current Account
• Fixed Deposits
• Deposit Reinvestment Certificate
• Cumulative Deposits

Period of Deposits

Term deposits - 15 days to 10 years

Joint Accounts

Jointly with resident/s in India provided the first named account holder is an NRI.

Rate Of Interest

Decided by the Bank in accordance with RBI directives and interest rates issued from time to time.

Taxes

Interest taxed at source( presently at the rate of 30% )

Payments/ Operations

• All legitimate transactions, debits and credits, can be routed through the account.
• Balances can be used for local payments freely.
• Funds can be transferred to NRO accounts.
• Funds can be transferred for permitted investments on non-repatriation basis.

Operations By Joint Account Holder And Power Of Attorney

• Can be Operated by joint resident account holder.
• Power of Attorney for local payments and not for repatriation of current income.

Repatriability
Current income, ( Interest, Profits, Rent,Dividends), net of taxes applicable, as certified by Chartered Accountant repatriable subject to RCI formalities

Facilities, Fund Based /Non-Fund Based, Against Security Of Funds Held In The Account.

• To self and third party (Subject to RBI guidelines)
• Rupee Loan available to depositors as well as to third parties according to rules applicable to domestic deposits.
• Non fund based facilities can be availed.

Nomination Facilities
Available