1 1.

1 INTRODUCTION One of the important functions of the bank is to accept deposits from the public for the purpose of lending. In fact, depositors are the major stakeholders of the Banking System. Mobilization has greater significance because of the confinement of credit policies and tough competition for deposits among banks, between banks and non-banking companies. Deposit plays a significant role in running a banking industry. A bank purchases deposits in order to produce and sell the loans advances. Survival and development of the banks are mainly influenced by their capital resources. Deposit Mobilization means campaigning and collecting customer deposits, bank mobilizes deposits by making finance and by investing in various financial markets. Basically deposit mobilization is related to the creation of credits.

Money placed into a banking institution for safekeeping. Bank deposits are made to deposit accounts at a banking institution, such as Demand deposits, Savings deposits.

Investment in Financial Markets The investment functions are usually performed by Treasury Office of the bank. Treasury invests deposit for: Ensuring optimum utilization of available resources. Rising additional resources required for meeting credit demands. Managing market and liquidity risks

This policy document on deposits outlines the guiding principles in respect of formulation of various deposit products offered by the Bank and terms and conditions governing the conduct of the account. The document recognizes the rights of depositors and aims at dissemination of information with regard to various aspects of acceptance of deposits from the members of the public, conduct and operations of various deposits accounts, payment of interest on various deposit accounts, closure of deposit accounts, method of disposal of deposits of deceased depositors, etc., for the benefit of customers. The various deposit products offered by the Bank can be categorized broadly into the following types. Definitions of major deposits schemes are as under:

Deposit: Money given in advance to show intention to complete the purchase of a property or Money transferred into a customer's account at a financial institution. "Demand deposits" means a deposit received by the Bank which is with drawable on demand.

"Savings deposits" means a form of demand deposit which is subject to restrictions as to the number of withdrawals as also the amounts of withdrawals permitted by the Bank during any specified period. These deposits accounts are one of the most popular deposits for individual accounts. These accounts not only provide cheques facility but also have lot of flexibility for deposits and withdrawal of funds from the account. Most of the banks have rules for the maximum number of withdrawals in a period and the maximum amount of withdrawal, but hardly any bank enforces these. However, banks have every right to enforce such restrictions if it is felt that the account is being misused as a current account. Till 24/10/2011, the interest on Saving Bank Accounts was regulated by RBI and it was fixed at 4.00% on daily balance basis. However, wef 25th October, 2011, RBI has deregulated Saving Fund account interest rates and now banks are free to decide the same within certain conditions imposed by RBI. Under

directions of RBI, now banks are also required to open no frill accounts (this term is used for accounts which do not have any minimum balance requirements). Although Public Sector Banks still pay only 4% rate of interest, some private banks like Kotak Bank and Yes Bank pay between 6% and 7% on such deposits. From the FY 2012-13, interest earned up to Rs 10,000 in a financial year on Saving Bank accounts is exempted from tax. "Current Account" means a form of demand deposit wherefrom withdrawals are allowed any number of times depending upon the balance in the account or up to a particular agreed amount and will also include other deposit accounts which are neither Savings Deposit nor Term Deposit. Current Accounts are basically meant for businessmen and are never used for the purpose of investment or savings. These deposits are the most liquid deposits and there are no limits for number of transactions or the amount of transactions in a day. Most of the current accounts are opened in the

3 names of firm / company accounts. Cheques book facility is provided and the account holder can deposit all types of the cheques and drafts in their name or endorsed in their favour by third parties. No interest is paid by banks on these accounts. On the other hand, a bank charges certain service charges, on such accounts. "Term deposit" means a deposit received by the Bank for a fixed period with drawable only after the expiry of the fixed period. Recurring deposit: A recurring deposit is a form of term deposit in which depositor deposits a fixed sum of money by way of monthly installment over a stipulated period and on the expiry of this period, the accumulated amount along with interest accrued is paid in lump sum. Re-investment deposit: Interest is compounded quarterly and paid on maturity, along with the principal amount of deposit. In the flexi deposits amount in savings deposit amounts beyond a fixed limit is automatically converted into term-deposits. Fixed deposit: Fixed deposit is a deposit scheme wherein a depositor agrees to receive back the principle amount after a specified period agreed at the time of deposit. Interest may be received by him periodically or at maturity.

4 1.2 INDUSTRY PROFILE Banking in India in the modern sense originated in the last decades of the 18th century. The first banks were The General Bank of India, which started in 1786, and Bank of Hindustan, which started in 1770; both are now defunct. The oldest bank still in existence in India is the State Bank of India, which originated in the Bank of Calcutta in June 1806, which almost immediately became the Bank of Bengal. This was one of the three presidency banks, the other two being the Bank of Bombay and the Bank of Madras, all three of which were established under charters from the British East India Company. For many years the presidency banks acted as quasi-central banks, as did their successors. The three banks merged in 1921 to form the Imperial Bank of India, which, upon India's independence, became the State Bank of India in 1955. Banking has played a very important role in the economic development of country. It is the life-blood of trade and commerce. They are so important that modern business is certainly impossible without them, and no country can achieve commercial and industrial progress in the absence of a sound banking system. Banking systems play a pivotal role in the economic development of a country like India. Their performance is all more important. Their activities are to be directed in such a way that they function effectively and efficiently. In addition to lending and borrowing of money, a modern bank performs a host of other functions. All of which are not considerable utility to its customers and the community generally. Post-Independence The partition of India in 1947 adversely impacted the economies of Punjab and West Bengal, paralysing banking activities for months. India's independence marked the end of a regime of the Laissez-faire for the Indian banking. The Government of India initiated measures to play an active role in the economic life of the nation, and the Industrial Policy Resolution adopted by the government in 1948 envisaged a mixed economy. This resulted into greater involvement of the state in different segments of the economy including banking and finance. The major steps to regulate banking included:

The Reserve Bank of India, India's central banking authority, was established in April 1935, but was nationalized on 1 January 1949 under the terms of the Reserve Bank of India (Transfer to Public Ownership) Act, 1948 (RBI, 2005b).

In 1949, the Banking Regulation Act was enacted which empowered the Reserve Bank of India (RBI) "to regulate, control, and inspect the banks in India".

The Banking Regulation Act also provided that no new bank or branch of an existing bank could be opened without a license from the RBI, and no two banks could have common directors.

Nationalization in the 1960s Banks Nationalization in India: Newspaper Clipping, Times of India, July 20, 1969Despite the provisions, control and regulations of Reserve Bank of India, banks in India except the State Bank of India or SBI, continued to be owned and operated by private persons. By the 1960s, the Indian banking industry had become an important tool to facilitate the development of the Indian economy. At the same time, it had emerged as a large employer, and a debate had ensued about the nationalization of the banking industry. Indira Gandhi, then Prime Minister of India, expressed the intention of the Government of India in the annual conference of the All India Congress Meeting in a paper entitled "Stray thoughts on Bank Nationalization."The meeting received the paper with enthusiasm. Thereafter, her move was swift and sudden. The Government of India issued an ordinance ('Banking Companies (Acquisition and Transfer of Undertakings) Ordinance, 1969')) and nationalized the 14 largest commercial banks with effect from the midnight of July 19, 1969.These banks contained 85 percent of bank deposits in the country Jayaprakash Narayan, a national leader of India, described the step as a "masterstroke of political sagacity." Within two weeks of the issue of the ordinance, the Parliament passed the Banking Companies (Acquisition and Transfer of Undertaking) Bill, and it received the presidential approval on 9 August 1969.

A second dose of nationalization of 6 more commercial banks followed in 1980. The stated reason for the nationalization was to give the government more control of credit delivery. With the second dose of nationalization, the Government of India controlled around 91% of the

6 banking business of India. Later on, in the year 1993, the government merged New Bank of India with Punjab National Bank. It was the only merger between nationalized banks and resulted in the reduction of the number of nationalized banks from 20 to 19. After this, until the 1990s, the nationalized banks grew at a pace of around 4%, closer to the average growth rate of the Indian economy.

Liberalization in the 1990s In the early 1990s, the then Narasimha Rao government embarked on a policy of liberalization, licensing a small number of private banks. These came to be known as New Generation tech-savvy banks, and included Global Trust Bank (the first of such new generation banks to be set up), which later amalgamated with Oriental Bank of Commerce, UTI Bank (since renamed Axis Bank), ICICI Bank and HDFC Bank. This move, along with the rapid growth in the economy of India, revitalized the banking sector in India, which has seen rapid growth with strong contribution from all the three sectors of banks, namely, government banks, private banks and foreign banks. The next stage for the Indian banking has been set up with the proposed relaxation in the norms for Foreign Direct Investment, where all Foreign Investors in banks may be given voting rights which could exceed the present cap of 10%, at present it has gone up to 74% with some restrictions. The new policy shook the Banking sector in India completely. Bankers, till this time, were used to the 4-6-4 method (Borrow at 4%; Lend at 6%; Go home at 4) of functioning. The new wave ushered in a modern outlook and tech-savvy methods of working for traditional banks. All this led to the retail boom in India. People not just demanded more from their banks but also received more. Current period Banking in India was generally fairly mature in terms of supply, product range and reacheven though reach in rural India still remains a challenge for the private sector and foreign banks. In terms of quality of assets and capital adequacy, Indian banks are considered to have clean,

7 strong and transparent balance sheets relative to other banks in comparable economies in its region. The Reserve Bank of India is an autonomous body, with minimal pressure from the government. The stated policy of the Bank on the Indian Rupee is to manage volatility but without any fixed exchange rate-and this has mostly been true. With the growth in the Indian economy expected to be strong for quite some timeespecially in its services sector-the demand for banking services, especially retail banking, mortgages and investment services are expected to be strong. One may also expect M&as, takeovers, and asset sales. Banks in the economy Issue of money, in the form of banknotes and current accounts subject to check or payment at the customer's order. These claims on banks can act as money because they are negotiable or repayable on demand, and hence valued at par. They are effectively transferable by mere delivery, in the case of banknotes, or by drawing a check that the payee may bank or cash. Netting and settlement of payments banks act as both collection and paying agents for customers, participating in interbank clearing and settlement systems to collect, present, be presented with, and pay payment instruments. This enables banks to economize on reserves held for settlement of payments, since inward and outward payments offset each other. It also enables the offsetting of payment flows between geographical areas, reducing the cost of settlement between them. Credit intermediation banks borrow and lend back-to-back on their own account as middle men. Credit quality improvement banks lend money to ordinary commercial and personal borrowers (ordinary credit quality), but are high quality borrowers. The improvement comes from diversification of the bank's assets and capital which provides a buffer to absorb losses without defaulting on its obligations. However, banknotes and deposits are generally unsecured; if the bank gets into difficulty and pledges assets as security, to raise the funding it needs to continue to operate, this puts the note holders and depositors in an economically subordinated position.

8 Asset liability mismatch/Maturity transformation banks borrow more on demand debt and short term debt, but provide more long term loans. In other words, they borrow short and lend long. With a stronger credit quality than most other borrowers, banks can do this by aggregating issues (e.g. accepting deposits and issuing banknotes) and redemptions (e.g. withdrawals and redemption of banknotes), maintaining reserves of cash, investing in marketable securities that can be readily converted to cash if needed, and raising replacement funding as needed from various sources (e.g. wholesale cash markets and securities markets). Money creation whenever a bank gives out a loan in a fractional-reserve banking system, a new sum of virtual money is created.

9 1.3 COMPANY PROFILE Established in 1937, Indian Overseas Bank (IOB) is a leading bank based in Chennai, India. IOB had the distinction of simultaneously commencing operations in three branches at Karaikudi, Chennai, and Yangon (Myanmar). Since IOB aimed to encourage overseas banking and foreign exchange operations, it soon opened its branches in Penang and Singapore. Today, Indian Overseas Bank boasts of a vast domain in banking sector with over 2650 domestic branches, 3 extension counters and 6 branches overseas branches (two branches in Hong Kong and one each in Singapore, South Korea, Sri Lanka and Bangkok), four representative offices, two remittance centers and one extension counter IOB was the first bank to venture into consumer credit, as it introduced the popular Personal Loan scheme. In 1964, the Bank started computerization in the areas of inter-branch reconciliation and provident fund accounts. Indian Overseas Bank was one of the 14 major banks which were nationalized in 1969. After nationalization, the Bank emphasized on opening its branches in rural parts of India. In 1979, IOB opened a Foreign Currency Banking Unit in the free trade zone in Colombo. In the year 2000, Indian Overseas Band undertook an initial public offering (IPO) that brought the government's share in the bank's equity down to 75%. The equity shares of IOB are listed in the Madras Stock Exchange (Regional), Bombay Stock Exchange, and National Stock Exchange of India Ltd., Mumbai. Since its inception, IOB has absorbed various banks including the latest Bharat Overseas Bank in 2007. Indian Overseas Bank has an ISO certified in-house Information Technology department, which has developed the software that 2650 branches use to provide online banking to customers; the bank has achieved 100% networking status as well as 100% CBS status for its branches. Indian Overseas Bank also has a network of about 1433ATMs throughout India. Its International VISA Debit Card is accepted at all ATMs belonging to the Cash Tree and NFS networks. IOB also offers Internet Banking; it's one of the banks that the Govt. of India has approved for online payment of taxes. The bank's business more than doubled in the last four years.

10 Indian Overseas Bank offers investment options like Mutual Funds and Shares. It provides a wide range of consumer and commercial banking services, including Savings Account, Current Account, Depositary Services, VISA Cards, Credit Cards, Debit Cards, Online Banking, Any Branch Banking, Home Loans, NRI Account, Agricultural Loans, Payment of Bills / Taxes, Provident Fund Scheme, Forex Collection Services, Retail Loans, etc. During fiscal 2009, the Bank launched a rural development project aiming at total village development called IOBSampoorna in Kuthambakkam and Padur villages in Tiruvallur District, Kameshwaram village in Nagapattinam District, Dhaliyur village in Coimbotore District and Innambur village in Thanjavur, Tamil Nadu Pre-World War II In 1937, Thiru.M. Ct. M. Chidambaram Chettyar established the Indian Overseas Bank (IOB) to encourage overseas banking and foreign exchange operations. IOB started up simultaneously at three branches, one each in Karaikudi, Madras (Chennai) and Rangoon (Yangon). It then quickly opened a branch in Penang and another in Singapore. The bank served the Nattukottai Chettiars, who were a mercantile class that at the time had spread from Chettinad in Tamil Nadu state to Ceylon (Sri Lanka), Burma (Myanmar), Malaya, Singapore, Java, Sumatra, and Saigon. As a result, from the beginning IOB specialized in foreign exchange and overseas banking (see below). Due to the war, IOB lost its branches in Rangoon, Penang, and Singapore. After World War II In the 1960s, the banking sector in India was consolidating through the merger of weak private sector banks with stronger ones; IOB absorbed five banks, including Kulitali Bank (est. 1933). Then in 1969 the Government of India nationalized IOB. At one point, probably before nationalization, IOB had twenty of its eighty branches located overseas. After nationalization it, like all the nationalized banks, turned inward, emphasizing the opening of branches in rural India. In 1988-89, IOB acquired Bank of Tamil Nadu in a rescue.

11 The new millennium In 2000, IOB engaged in an initial public offering (IPO) that brought the government's share in the bank's equity down to 75%. In 2001 IOB acquired the Mumbai-based Adarsha Janata Sahakari Bank, which gave it a branch in Mumbai. Then in 2009 IOB took over Shree Suvarna Sahakari Bank, which was founded in 1969 and had its head office in Pune. Shree Suvarna Sahakari Bank had been in administration since 2006. It had nine branches in Pune, two in Mumbai and one in Shirpur. The total employee strength was estimated to be little over 100. International expansion As mentioned above, IOB was international from its inception with branches in Rangoon, Penang, and Singapore. In 1941, IOB opened a branch in Malaya that presumably closed almost immediately because of the war. In 1946, after the War, IOB opened a branch in Ceylon. More overseas branches followed quickly. In 1947, IOB opened a branch in Bangkok and re-opened others. In 1948 United Commercial Bank (see below) opened a branch in Malaya. In 1949, IOB opened a branch in Bangkok. Then in 1963, The Burmese government nationalized IOBs branch in Rangoon. In 1973, IOB, Indian Bank and United Commercial Bank established United Asian Bank Berhad in Malaysia. (Indian Bank had been operating in Malaysia since 1941 and United Commercial Bank Limited had been operating there since 1948.) The banks set up United Asian to comply with the Banking Law in Malaysia, which prohibited foreign government banks from operating in the country. Also, IOB and six Indian private banks established Bharat Overseas Bank as a Chennaibased private bank to take over IOB's Bangkok branch. In 1977: IOB opened a branch in Seoul. Two years later, IOB opened a Foreign Currency Banking Unit in Colombo, Sri Lanka.International expansion slowed thereafter, for a while. In 1992 Bank of Commerce (BOC), a Malaysian bank, acquired United Asian Bank (UAB).

12 In the new millennium, international expansion picked up once again. In 2007, IOB took over Bharat Overseas Bank. Three years later, Malaysia awarded a commercial banking license to a locally incorporated bank to be jointly owned by Bank of Baroda, Indian Overseas Bank and Andhra Bank. The new bank, India International Bank (Malaysia), will reside in Kuala Lumpur, which has a large population of Indians. Andhra Bank will hold a 25% stake in the joint-venture, Bank of Baroda will own 40% and IOB the remaining 35%.

13 1.4 NEED FOR THE STUDY The project is mainly concerned with the deposit section, the importance of the study is to analyze the various deposit schemes offered by the bank, interest rates and benefits offered to attract the deposits from investors. And also identify, whether bank disperse the deposit effectively by making investment in various financial markets and providing finance to various sectors to increase the net worth of the deposits.

14 1.5 OBJECTIVES OF THE STUDY PRIMARY OBJECTIVE: To study the Deposit mobilization with reference to Indian overseas bank, Velachery. SECONDARY OBJECTIVES: To identify the performance of deposit and loans with the help of cash inflows and outflows. To project the trend in deposits of Indian overseas bank, velachery. To find out the relationship between deposits and loans.

15 1.6 SCOPE OF THE STUDY The present study attempts to obtain a general view of deposit schemes in Indian overseas bank, velachery. This study helps to determine whether the deposit level is increased or decreased with the various schemes offered, and also identify the level of loans and advance provided to various sectors out of deposits. The study focuses only towards the bank. But it does include the views of the others who are directly or indirectly associated with the bank.

16 1.7 REVIEW OF LITERATURE Mora, Nada in their article examined how commercial bank deposits and lending have evolved during the economic crisis compared with past episodes of financial stress. It compares the 2007 to 2009 financial crisis with previous financial market disruptions and explores whether deposits and loans increased less at bank where deposits were more likely to be viewed as unsafe. Goldwasser, Joan, Kosnett, Jeffrey R, in an article discussed investments in higher yielding accounts without sacrificing investment safety. Some community banks and credit unions offer up to 5 percent on balances of up to 25,000 u.s dollars. Certificates of deposit (CD) are ideal for money above 25,000 u.s dollars. It is also suggested to invest in short term bonds and bank loans. Joseph studied the performance of Lead Bank Scheme, the mobilization of bank deposits in Kerala by commercial Banks. He observed that competition from co-operative and other institutions was the main obstacles to achieving the deposit mobilization target. The popularity of private financial institutions was due to their personal relations with local people. 56.4 percent of the customers (self-employed) surveyed had their first percent dealing with banks for taking loans. Kam Hon Chu discussed in their article about runs and deposit insurance policy and issues such as financial stability and government bailouts. Some problems with deposit insurance are analyzed, such as moral hazard, and it is noted that the treat of possible bank runs tends to foster a more prudent approach to financial risk. The question whether banking regulatory agencies have a history of successfully preventing or correcting market failures is also addressed. Goldwasser, Joan in an article offers advice on switching banks, and also presents several charts that give return data for selected funds and accounts in various categories including top-yielding taxable and tax free money market funds, and top-yielding one year and five year certificates of deposit. Laurent studied the perception of customers on five competing banks in a medium size city in UK for private deposits. He observed that these five banks differed from each other as a

17 result of oligopolistic market situation only on seven attributes i.e., friendliness, quality of service, community spirit, modem facilities, convenience, range of services and ownership. These seven attributes accounted for 91 percent of the overall differences between the five banks. The study revealed that on the basis of perception of overall image of the five banks relative to each other, there existed the different market segments. K. Avadhani studied the performance of rural branches of some commercial banks in order to identify the factors influencing deposit mobilization in rural areas in different states. He came out with the opinion that there existed sufficient relationship between the deposits of a rural branch and its age. The growth of deposits is at a faster rate in the first six years and tapers off subsequently. The growth rate in deposits of commercial banks cannot be explained in terms of price differentials as co-operatives offer high rates of interest. Therefore product differentials would offer a better explanation of the disparate growth rates in deposits. Georgas, Mary Ellen in an article suggested that an effective, proactive and comprehensive customer service strategy is the key for banks to attract and retain core deposits. According to the author, without such a strategy, a bank risks not only missing opportunities to generate new deposit accounts, but also losing existing deposits. It advises that branch staff needs to be proactive in welcoming and directing customers as they arrive and each customer interaction should be viewed as an opportunity to depend the banks relationship with that individual. Nag and Mr. Shivaswamy studied the comparative performance of foreign and Indian banks and observed that there was a distinct preference of bank customers to bank with foreign banks notwithstanding the fact that foreign banks stipulate relatively high levels of minimum amounts to be maintained as deposits and charge relatively high interest rates and service costs. In respect of deposit supplies, their strategy had been to procure from a segmented part of the total supplies of deposits of large size from a relatively small number of depositors. Large accretion of non-resident deposits with foreign banks was mainly because of the familiarity of the names of foreign banks operating in India to banks abroad. Raju studied the levels of savings and the manner of their distribution among different physical and financial assets of household sector and identified the factors influencing their

18 savings behavior. He found that major portions of the savings of households were in the form of financial savings and that too in the form of bank deposits. Subramanian in his research analyzed the empirical analysis on dis-intermediation from the household sectors portfolio preferences point of view based on demand model of five assets including bank deposits. The study revealed that the household sectors preferences between bank deposits and lending to private corporate sector tended to be in favour of the latter and against the former. Nalini in his research study studied on the impact of mutual funds on the deposit mobilization of commercial banks examined the awareness level and adoption level of mutual funds among household investors. She found that the advent of mutual funds has brought in expected changes in the growth of bank deposits and their ownership pattern, but the changes Aazim, Mohiuddin in an article focuses on the stagnation of rates of return on overall bank deposits despite the increase in lending rates in Pakistan. Senior bankers claimed that the structural imbalance in the banking sector has contributed to such stagnation. Moreover, the credit deposit rate (CDR) and the revision of the monetary policy of the State bank of Pakistan (SBP) have been accounted for unimproved returns. Gerstner,Lisa,Goldwasser Joan in their article discussed option for savings, depending upon a persons risk tolerance and duration for which they are prepared to commit their funds. Banks accounts insured by the U.S Federal Deposit Insurance Corp. are very safe but offer little yield. People willing to invest money for at least several months might consider a certificate of deposit. Tummillo,Diana discussed the use of on boarding as a strategy to grew core deposits in banks. Banks adopts the strategy because it increases household profitability, improve retention, preventing attrition and cross sell ratios. The benefits on boarding are enhanced response rates, higher average balance and improved retention rates. At its core, on boarding is a series of a series of communications targeted at new households during and immediately after the initial account opening process. The ultimate goal of on boarding is to make your bank the customers primary bank, i.e., the institution where the customer has his or her transactional relationships (checking, bill pay, debit card).

19 Hromadka,erik in his article offers information on digital deposits in india.Business can now process cheques and receive payments on the day the cheques is presented. The cheques clearing for the 21st century Act created a new negotiable instrument called substitute

cheques,wherein it allows banks to process cheques information electronically and deliver to banks,Furthermore, a substitute cheques is the legal equivalent of the original paper cheques and includes all the same information. Abraham,H. A bank, acting as a central planner under aggregate full certainly, optimizes liquidity allocation by sharing risk between discrete numbers of depositors. This paper demonstrates the following. (a) It is sufficient to rule out a bank run if all depositors inform the bank their types, patient or impatient, in advance, in a non-committal manner. There cannot be bank run because depositors strategic behavior induces the bank to act as a central planner under aggregate full certainty.(b)The impossibility of a bank run is consistent with the price mechanism in partial equilibrium; but it may be inconsistent with the price mechanism in general disequilibrium. (c) The paper concludes that the management of risk sharing by banks is not a cause for bank runs. Samartin, Margarita surveyed the theories of why banks promise to pay par on demand and examine evidence about the conditions under which banks have promised to pay the par value of deposits and banknotes on demand when holding only fractional reserves. The theoretical literature can be broadly divided into four strands: liquidity provision, asymmetric information, legal restrictions, and a medium of exchange. We assume that it is not zero cost to make a promise to redeem a liability at par redemption are possible explanations of why banks promise to pay par on demand. If the explanation based on customers demand for liquidity is correct, payment of deposits at par will be promised when banks hold assets that are illiquid in the short run. If the asymmetric-information explanation based on the difficulty of valuing assets is correct, the marketability of banks assets determines whether banks promise to pay par. If the legal restrictions explanation of par redemption is correct, banks will not promise to pay par if they are not required to do so. If the transaction explanation is correct, banks will promise to pay par values only if the deposits are used in transactions. After the survey of the theoretical literature, we examine the history of banking in several countries in different eras: fourth-century Athens, medieval Italy, japan, and free banking and money market mutual funds in the United

20 States. We find that all of the theories can explain some of the observed banking arrangements, and none explain all of them. Nosal,ed discussed in an article about the perception that deposit insurance improves that stability of the banking industry by eliminating bank runs. The factors that lead to a bank run are enumerated. The model of bank run articulated by Douglas Diamond and Philip Dybvig is described. It also explores an assumption that the probability an investor impatient is independent of the probability that an investor will be patient. Berger, Allen N. in his paper offers a possible explanation for the conflicting empirical results in the literature concerning the relation between loan risk and collateral. Specifically, we posit that different economic characteristics or types of collateral pledges may be associated with the empirical dominance of the four different risk-collateral channels implied by economic theory. For our sample, collateral overall is associated with lower loan risk premiums and a higher probability of ex post loan nonperformance (delinquency or default). This findings suggests that the dominant reason collateral is pledged is that banks require collateral from observably riskier borrowers (lender selection effect),while lower risk premiums arise because secured loans carry lower losses given default (loss mitigation effect). We also find that the risk-collateral channels depend on the economic characteristics and types of collateral. The lender selection effect appears to be especially important for outside collateral, the risk shifting or loss mitigation effects for liquid collateral, and the borrower selection effect for noninvertible collateral. Among collateral types, we find that the lender selection effect is particularly strong for residential real estate collateral and that the risk shifting effect is important for pledged deposits and bank guarantees. Our results suggest that the conflicting results in the extant risk collateral literature may be because different samples may be dominated by collateralized loans with different economic characteristics or different types of collateral. The banking commission (1972) viewed that proximity of institutions to be depositor and availability of varying schemes tailored to suit the liquidity and other considerations which weight with the depositors, the return on deposits appeared to be of some significance. Hence the effects of administered interest rates on bank deposits need to be studied carefully and a well thought out comprehensible approach to the question of the structure of interest rate on deposits worked out. It is necessarily for banks to take into account the motivation for savings to attain a

21 larger measure of success in deposit mobilization from small persons. While the efforts that the banks have been taking to mobilize deposits have to continue, it is important to see that the standard of services for the existing depositors is also maintained at a high level. The availability of ancillary banking services also influence the choice of the depositors, particularly in smaller towns. The commission further stated that effective service and courteous and personalized attention have been found to be among the most important considerations in depositors choice of a bank and recommended waiting time of customers at the cash counters be reduced by procedural adjustments and introduction of teller system.

22 1.8 RESEARCH METHODOLOGY

RESEARCH Research is a serious academic activity with a set of objectives to explain or analyse or understand a problem or finding solution for problem adopting a systematic approach in collecting, organizing and analyzing the information relating to a problem. RESEARCH METHODS Research methods may be understood as all those methods or techniques that are used for conducted of research. RESEARCH METHODOLOGY Research methodology is a way to systematically solve the research problem. It may be understood as a science of studying now research is done systematically. In that various steps, those are generally adopted by a researcher in studying his problem along with the logic behind them. It is important for research to know not only the research method but also know methodology. The procedures by which researcher go about their work of describing, explaining and predicting phenomenon are called methodology. Methodology is an essential aspect of any project or research. It enables the researcher look at the problem in a systematic manner. Methods comprise the procedures used for generating, collecting and evaluating data. All this means that it is necessary for the researcher to design his methodology for his problem as the same may differ from problem to problem. RESEARCH DESIGN A research design is the arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure. In

23 Fact, the research design is the conceptual structure with in which research is conducted. It constitutes the blueprints for the collection, measurement and analysis of data. The research design took for the study was Analytical research design. ANALYTICAL RESEARCH DESIGN The analytical tool is designed to enhance the participants familiarity with fundamental principles and applications of analytical design techniques and how they can be used to achieve a good, cost effective and reliable design. The design analysis tools provide, in any circumstances, a cost effective, speedy and practical alternative to experimental investigation. There are a number of analysis techniques available to predict product performance, life, cost failure modes. DATA COLLECTION Data refers to information or facts. Often, researchers understand by data only numerical figure. It also includes descriptive facts; non numerical information, qualitative and quantitative information. There are two types of data collection. They are Primary data collection Secondary data collection Primary data are those which are collected a fresh and for the first time and thus happen to be original in character.it is an original collection of reports and details. Secondary data are those which have already been collected by someone else and which have already been passed through the statistical and financial process. The secondary data is the nature of data collection work is merely that of compilation. TOOLS USED FOR ANALYSIS PERCENTAGE METHOD In the case of dichotomous and multiple choice questions percentage calculated as a part of the analysis of such questions. It refers to the special kind of ratio. Percentages are used in

24 making comparisons between two or more series of data. Percentages are based on descriptive relationship. It is used to give a tabulated representation of the respondents viewpoint TREND ANALYSIS Trend analysis is the practice of collecting information and attempting to spot a pattern, or trend, in the information. In some fields of study, the term trend analysis is often to predict future events, it could be used to estimate uncertain events in the past, such as how many ancient kings probably ruled between two dates, based on data such as the average years which other known kings reigned. CASH FLOW STATEMENT The cash flow statement is a financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents, and breaks the analysis down to operating, investing, and financing activities. Essentially, the cash flow statement is concerned with the flow of cash in and cash out of the business. The statement captures both the current operating results and the accompanying changes in the balance sheet. As an analytical tool, the statement of cash flows is useful in determining the short-term viability of a company, particularly its ability to pay bills. The cash flow statement is distinct from the income statement and balance sheet because it does not include the amount of future incoming and outgoing cash that has been recorded on credit. Therefore, cash is not the same as net income, which, on the income statement and balance sheet, includes cash sales and sales made on credit. The money coming into the business is called cash inflow, and money going out from the business is called cash outflow.

COMMON SIZE STATEMENTS Common size statements indicate the relationship of various items with some common items, (expressed as percentage of the common items).In the income statements, the sales figure is taken as basis and all other figures are expressed as percentage of sales. Similarly, in the balance sheet the total assets and liabilities is taken as base and all other figures are expressed as percentage of this total.

25 1.9 LIMITATIONS OF THE STUDY The study is based on the data obtained from the annual reports of the concern i.e. balance sheet. This study is not generalizable, because data collected and analyse towards velachery branch alone any other branch information are not taken into consideration. Restriction on the availability of primary data on bank financials i.e., cant collect data from the customer.

26 2. DATA ANALYSIS & INTERPRETATION Important part of any kind of research by doing this in depth data comparison the researcher can begin to identify various data that will help to understand more about the respondent guide towards better decision. The tools used for the study are percentage Table No 2.1 Table showing percentage of increase/decrease in savings deposits ABSOLUTE INCREASE/ DECREASE 90119007 113407409 25539095 45148329

YEAR 2009 2010 2011 2012 2013 Interpretation:

AMOUNT IN Rs('000) 280079351 370198358 483605767 509144862 554293191

(%) INCREASE/DECREASE 0.32 0.31 0.05 0.09

From the above table it is interpreted that the saving deposits level in the financial year 2009-2010 by 0.32 ,which again decreased in the financial year 2010-2011 by 0.31, again decreased in the financial year 2011-12 by 0.05 and again increased in the financial year 201213 by 0.09. Chart No 2.1 (a) Chart showing percentage increase/decrease in savings deposits

Savings Deposits
0.35 0.30 0.25 0.20 0.15 0.10 0.05 0.00 2009 2010 2011 2012 2013

(%) INCREASE/DECREASE

27 Table No 2.2 Table showing percentage of increase/decrease in current account ABSOLUTE INCREASE/ DECREASE -4960630 10552367 -5277255 15306447

YEAR 2009 2010 2011 2012 2013

AMOUNT IN Rs('000) 71214720 66254090 76806457 71529202 86835649

(%) INCREASE/DECREASE

-0.07 0.16 -0.07 0.21

Interpretation: From the above table it is interpreted that the current deposits in the financial year 20092010 decreased by-0.07 ,which again increased in the financial year 2010-2011 by 0.16, again decreased in the financial year 2011-12 by -0.07and again increased in the financial year 201213 by 0.21. Chart No 2.2 (a) Chart showing percentage increase/decrease in current account

0.25 0.20 0.15 0.10 0.05 0.00 -0.05 -0.10 2009

Current Deposits

(%) INCREASE/DECREASE 2010 2011 2012 2013

28 Table No 2.3 Table showing percentage of increase/decrease in short deposits

YEAR 2009 2010 2011 2012 2013

AMOUNT IN Rs('000) 254081.4 221099.8 551222.56 403607.23 614825.67

ABSOLUTE INCREASE/ DECREASE

(%) INCREASE/DECREASE

-32981.6 330122.76 -147615.33 211218.44

-0.13 1.49 -0.27 0.52

Interpretation: From the above table it is interpreted that the current deposits in the financial year 20092010 decreased by-0.13, which again increased in the financial year 2010-2011 by 1.49, again decreased in the financial year 2011-12 by -0.27and again increased in the financial year 201213 by 0.52. Chart No 2.3 (a) Chart showing percentage increase/decrease in short deposits

Short Deposits
1.60 1.40 1.20 1.00 0.80 0.60 0.40 0.20 0.00 -0.20 -0.40 2009 2010 2011 2012 2013 (%) INCREASE/DECREASE

29 Table No 2.4 Table showing percentage of increase/decrease in fixed deposits

year 2009 2010 2011 2012 2013

Fixed Deposits 291713 310713 3806243 3895724 755796

ABSOLUTE INCREASE/ DECREASE 19000 3495530 89481 -3139928

(%) INCREASE/DECREASE 0.07 11.25 0.02 -0.81

Interpretation: From the above table it is found that the fixed deposit level in the financial year 20092010 is0.07 ,which again increased in the financial year 2010-2011 by 11.25, again decreased in the financial year 2011-12 by 0.02 and again decreased in the financial year 2012-13 by -0.81. Chart No 2.4 (a) Chart showing percentage increase/decrease in fixed deposits

Fixed Deposits
12.00 10.00 8.00 6.00 (%) INCREASE/DECREASE 4.00 2.00 0.00 2009 -2.00 2010 2011 2012 2013

30 Table No 2.5 Table showing percentage of increase/decrease in reinvestment deposits

YEAR 2009 2010 2011 2012 2013 Interpretation:

AMOUNT IN Rs('000) 753686936 787185520 729888775 643537407 7636644286

ABSOLUTE INCREASE/ DECREASE 33498584 -57296745 -86351368 6993106879

(%) INCREASE/DECREASE 0.04 -0.07 -0.12 10.87

From the above table it is found that the reinvestment deposits in the financial year 20092010 is 0.04 ,which decreased in the financial year 2010-2011 by -0.17, again decreased in the financial year 2011-12 by -0.012and which again increased in the financial year 2012-13 by 10.87. Chart No 2.5 (a) Chart showing percentage increase/decrease in reinvestment deposits

Reinvestment Deposits
12.00 10.00 8.00 6.00 (%) INCREASE/DECREASE 4.00 2.00 0.00 2009 -2.00 2010 2011 2012 2013

31 Table No 2.6 Table showing percentage of increase/decrease in recurring deposits

YEAR 2009 2010 2011 2012 2013

AMOUNT IN Rs('000) 9331603 12688100 13550730 15731200 20959550

ABSOLUTE INCREASE/ DECREASE 3356497 862630 2180470 5228350

(%) INCREASE/DECREASE

0.36 0.07 0.16 0.33

Interpretation: From the above table it is found that the recurring deposits in the financial year 20092010 is 0.36 ,which decreased in the financial year 2010-2011 by 0.07, which is increased again in the financial year 2011-12 by 0.16 and again increased in the financial year 2012-13 by 0.33. Chart No 2.6 (a) Chart showing percentage increase/decrease in recurring deposits

Recurring Deposits
0.40 0.35 0.30 0.25 0.20 0.15 0.10 0.05 0.00 2009 2010 2011 2012 2013 (%) INCREASE/DECREASE

32 Table No 2.7 Table showing percentage of increase/decrease in special fixed deposits

YEAR 2009 2010 2011 2012 2013

AMOUNT IN Rs('000) 182666707 212783265 248130804 323517404 387517408

ABSOLUTE INCREASE/ DECREASE 30116558 35347539 75386600 64000004

(%) INCREASE/DECREASE 0.16 0.17 0.30 0.20

Interpretation: From the above table it is interpreted that the current deposits in the financial year 20092010 is 0.16 ,which again increased in the financial year 2010-2011 by 0.17, increased in the financial year 2011-12 by 0.30 and again decreased in the financial year 2012-13 by 0.20. Chart No 2.7 (a) Chart showing percentage increase/decrease in special fixed deposits

0.35 0.30 0.25 0.20 0.15

Special Fixed Deposits

(%) INCREASE/DECREASE 0.10 0.05 0.00 2009 2010 2011 2012 2013

33 Table No 2.8 Table showing trend in short deposits for the Indian overseas bank X=YEAR2010 -2 -1 0 1 2 X=0 TREND VALUES 390887396.6 399927364.3 408967332 418007299.7 42704727.4

YEAR 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 TOTAL Interpretation:

Y 25408140 22109980 55122256 40360723 61482567 Y= 204483666

X^2 4 1 0 1 4 XY=10

XY -50816200 -22109980 0 40360723 122965134 XY=90399677

From above table it is interpreted that short term deposits has been increased rapidly. The trend value shows every year value is increasing like in the year of 2008-2009 the trend value is 39.08, which is again increased to 39.99 in the year of 2009-2010, in the year 2010-2011 the trend value is 40.89, which is increased to 41.80 in the year of 2011-12 and again increased to 42.70 in the year of 2012-2013. Chart No 2.8 (a) Chart showing trend in short deposits for the Indian overseas bank

short deposits
450000000 400000000 350000000 300000000 250000000 200000000 150000000 100000000 50000000 0

34 Table No 2.9 Table showing trend in fixed deposits for the Indian overseas bank YEAR 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 TOTAL Y 291713 310713 3806243 3895724 755796 Y= 9060109 X=YEAR2010 -2 -1 0 1 2 X=0 X^2 4 1 0 1 4 XY=10 XY -583426 -310713 0 3895724 1511592 XY=4513177 TREND VALUES 909402.4 1360720.1 1812037.8 2263355.5 2714673.2

Interpretation: From above table it is found that a fixed deposit has been increased. The trend value shows every year value is increasing like in the year of 2008-2009 the trend value is 9.09, which is again increased to 13.60 in the year of 2009-2010, in the year 2010-2011 the trend value is 18.12, which is increased to 22.63 in the year of 2011-12 and again increased to 27.14 in the year of 2012-2013. Chart 2.9 (a) Chart showing trend in fixed deposits for the Indian overseas bank

fixed deposits
3000000

2500000
2000000 1500000 1000000 500000 0

35 Table No 2.10 Table showing trend in special fixed deposits for the Indian overseas bank X=YEAR2010 -2 -1 0 1 2 X=0 TREND VALUES 166836009.4 218879563.5 270923117.6 322966671.7 375010225.8

YEAR 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 TOTAL Interpretation:

Y 182666707 212783265 248130804 323517404 387517408 Y= 1354615508

X^2 4 1 0 1 4 XY=10

XY -365333414 -212783265 0 323517404 775034816 XY=520435541

From above table it is interpreted that special fixed deposits has been increased rapidly. The trend value shows every year value is increasing like in the year of 2008-2009 the trend value is 16.68, which is again increased to 21.88 in the year of 2009-2010, in the year 2010-2011 the trend value is 27.09, which is increased to 32.29 in the year of 2011-12 and again increased to 37.50 in the year of 2012-2013. Chart 2.10 (a) Chart showing trend in special fixed deposits for the Indian overseas bank

special fixed deposits

400000000 300000000 200000000 100000000 0

Table No 2.11 Table showing trend in recurring deposits for the Indian overseas bank

36 X=YEAR2010 -2 -1 0 1 2 X=0 TREND VALUES 9192437.8 11822337.2 14452236.6 17082136 19712035.4

YEAR 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 TOTAL Interpretation:

Y 9331603 12688100 13550730 15731200 20959550 Y= 72261183

X^2 4 1 0 1 4 XY=10

XY -18663206 -12688100 0 15731200 41919100 XY=26298994

From above table it is interpreted that recurring deposits has been increased rapidly. The trend value shows every year value is increasing like in the year of 2008-2009 the trend value is 9.19, which is again increased to 11.82 in the year of 2009-2010, in the year 20102011 the trend value is 14.45, which is decreased to 1.70 in the year of 2011-12 and again increased to 19.71 in the year of 2012-2013. Chart No 2.11 (a) Chart showing trend in recurring deposits for the Indian overseas bank

recurring deposits
25000000 20000000 15000000 10000000 5000000 0 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013

Table No 2.12.Table showing trend in saving deposits for the Indian overseas bank

37 X=YEAR2010 -2 -1 0 1 2 X=0 TREND VALUES 301989485 370726895.4 439464305.8 508201716.2 576939126.6

YEAR 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 TOTAL

Y 280079351 370198358 483605767 509144862 554293191 Y= 2197321529

X^2 4 1 0 1 4 XY=10

XY -560158702 -370198358 0 509144862 1108586382 XY=687374104

Interpretation: From above table it is found that saving deposits has been increased rapidly. The trend value shows every year value is increasing like in the year of 2008-2009 the trend value is 3.01, which is again increased to 37.07 in the year of 2009-2010, in the year 2010-2011 the trend value is 43.82, which is increased to 50.82 in the year of 2011-12 and again increased to 57.69 in the year of 2012-2013. Chart No 2.12 (a) Chart showing trend in saving deposits for the Indian overseas bank

savings deposits
700000000 600000000 500000000 400000000

300000000
200000000 100000000 0 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013

38 Table No 2.13.Table showing trend in current account for the Indian overseas bank X=YEAR2010 -2 -1 0 1 2 X=0 TREND VALUES 67224629.6 70876326.6 74528023.6 78179720.6 81831417.6

YEAR 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 TOTAL Interpretation:

Y 71214720 66254090 76806457 71529202 86835649 Y= 372640118

X^2 4 1 0 1 4 XY=10

XY -142429440 -66254090 0 71529202 173671298 XY=36516970

From above table it is interpreted that short term deposits has been increased rapidly. The trend value shows every year value is increasing like in the year of 2008-2009 the trend value is 67.22, which is again increased to 70.87 in the year of 2009-2010, in the year 2010-2011 the trend value is 74.52, which is increased to 78.17 in the year of 2011-12 and again increased to 81.83 in the year of 2012-2013. Chart No 2.13 (a) Chart showing trend in current account for the Indian overseas bank

current account
90000000 80000000 70000000 60000000 50000000 40000000 30000000 20000000 10000000 0 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013

39 Table No 2.14.Table showing cash inflow and outflow statement

Particulars Cash Inflows: Demand Deposits savings current Total Term deposits Total(A) 280079351.09 83268761.43 363348112.52 979664662 1343012774.52 370198358.61 78949656.63 449148015.24 1049214244 1498362259.24 483605767.64 91656308.72 575262076.36 1070400852.00 1645662928.36 509144862.84 93559122.14 602703984.98 1064264412.00 1666968396.98 554293191.20 124927678.60 679220869.80 8145308265.00 8824529134.80 2009 2010 2011 2012 2013

Cash Outflows: Short term loans Loan term loans Total(B) Cash Balances (A-B) 121,841,868.84 239325945.99 361,167,814.83 981844959.69 153736660.68 164373655 318110315.66 1180251943.58 182881194.06 253486489.74 436367683.80 1209295244.56 291709756.89 313202984.19 604912741.08 1062055655.90 381953646.43 381946512.22 763900158.65 8060628976.15

Interpretation: From the above table it is interpreted that the cash inflow and out flow helps to determine the level of deposits received by the bank and loans provided to the outsiders. The level of deposits has been increased in the current period i.e., 2013 compared to other financial year and also determine that both short and long term loans of financing has been increased in the recent year.

40 Table No 2.15.Table showing common size balance sheet analysis for the financial year 2009 2009 PERCENTAGE (%) 0.280070071 5.751592573 18.9308759 0.832691355

PARTICULARS Assets Bills purchased & discounted Cash Credit Loans Staff loans Term loans (Total) Total Cash on hand Fixed assets Other assets Head Office account TOTAL Liabilities Current Deposits Savings Deposits Term Deposits other deposits Total Bills payable Interest accured Tax Profit Head Office account Other liabilities TOTAL

AMOUNT (RS.) 3954857.56 81217994.22 267322093.86 11758399.23 279080493.09 364253344.87 10185250.25 0.00 3597133.28 1034060020.47 1412095748.87 83268761.43 280079351.09 979664662.00 40894655.65 1383907430.17 4780224.60 2181930.10 94952.00 15390588.00 30000.00 5710624.00 1412095748.87

0.721286093 0.254737208 73.2287468 100 5.896821196 19.83430311 69.37664551 2.89602569 0.338519863 0.15451715 0.00672419 1.089911078 0.002124502 0.404407704 100

Interpretation: From the above table it is interpreted that, to analysis the relationship among various items in asset and liabilities and also derive the percentage level.

41

3.1 FINDINGS From the above table it is interpreted that the saving deposits level in the financial year 2009-2010 is decreased by 0.31 From the above table it is interpreted that the current deposits increased in the financial year 2012-13 by 0.21. From the above table it is interpreted that the current deposits increased in the financial year 2012-13 by 0.52. From the above table it is found that the fixed deposit level decreased in the financial year 2012-13 by -0.81. From the above table it is found that the reinvestment increased in the financial year 2012-13 by 10.87. From the above table it is found that the recurring deposits in the financial year 20092010 is 0.36 and again increased in the financial year 2012-13 by 0.33. From the above table it is interpreted that the current deposits in the financial year 20092010 is 0.16 , and again decreased in the financial year 2012-13 by 0.20. From above table it is interpreted that short term deposits has been increased rapidly. The trend value shows every year value is increasing like in the year of 2008-2009 the trend value is 39.08, which is increased to 42.70 in the year of 2012-2013. From above table it is found that a fixed deposit has been increased in the year of 20082009 the trend value is 9.09, which is again increased by 13.60 in the year of 2009-2010 to 27.14 in the year of 2012-2013. From above table it is interpreted that special fixed deposits have been increased in the year of 2008-2009 the trend value is 16.68, which is increased to 37.50 in the year of 2012-2013. From above table it is interpreted that recurring deposits has been increased rapidly but stable. The trend value show every year value is increasing like in the year of 2008-2009 the trend value is 9.19, which is decreased to 1.70 in the year of 2011-12 and again increased to 19.71 in the year of 2012-2013.

42 From above table it is found that saving deposits has been increased in the year of 20082009 the trend value is 3.01, which is increased to 57.69 in the year of 2012-2013. From above table it is interpreted that trend level for short term deposits is increasing in the year of 2008-2009 by 67.22, which is increased to 81.83 in the year of 2012-2013.

43

3.2 SUGGESTIONS The basic problem determined in the bank is people are not aware about the various schemes offered by Indian overseas bank. So awareness can be created towards the public about the bank and its products should be created. Bank can concentrates on more marketing personnel to have a complete analysis on the customer attitude towards the deposits and mobilize the same for increasing the customer level of the bank. Counseling can be given for those customers who lack of knowledge on the various deposit schemes offered by the bank so as to increase the customer base of the bank. This should be given more focus in recent days as the numbers of private players in the banking industry are increasing. Bank can focus on introducing new deposit schemes and banking services and try to concentrate on developing an appropriate strategy for attracting deposits and mobilize the same.

44 3.3 CONCLUSION

Based on the analysis, it can be concluded that the performance of the bank is found satisfactory in terms of deposits. Indian overseas bank, achieved tremendous growth in their business over the past 5 years particularly the deposits are on par with the advances indicating a positive note on its total business performance. Thus the bank should take pride in educating the customer about the saving and investments and helps the society to progress further. The demand for banking sector is increasing day by day. There is tough competition ahead for the company from its major competitors in the banking sector. The bank deposit schemes have been increasing year by year, so the bank gets more growth in every year.

45

REFERENCES Websites referred http://in.reuters.com/finance/stocks/analyst?symbol=IOBK.BO http://www.hoovers.com/company/Indian_Overseas_Bank/rckscri-1.html http://economictimes.indiatimes.com/indian-overseas-bank/stocks/companyid11713.cms http://www.securities.com/Public/companyprofile/IN/Indian_Overseas_Bank_en_ 1624469.html http://www.indiainfoline.com/Markets/Company/Background/CompanyProfile/Indian-Overseas-Bank/532388

Books referred Maheshwari,S.N,Financial Manangement,Eleventh Revised and Enlarged Edition,2006 Kothari, C.R,, Research Methodology, 2nd Revised Edition, New Age International Limited, 2004

Annual reports
Annual report 2008 2009 Annual report 2009 2010 Annual report 2010 2011 Annual report 2011 2012 Annual report 2012 2013