Presentation on Indian overseas bank


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Presentation on Indian overseas bank

  3. 3. PERSONAL BANKING  SAVINGS BANK  Regular Savings Bank Account  Savings Bank No frill Account
  4. 4. REGULAR SAVINGS BANK ACCOUNT Details Description ELIGIBILITY Individuals, Joint accounts, Clubs, associations, trusts, Govt. Bodies, societies (including co- operatives), educational institutions, associations and other non-trading organizations. Minors who have completed ten years of age can apply in their names. MINIMUM BALANCE You need to maintain a minimum balance of Rs. 100/- for non-cheque operated accounts and Rs. 500/- for cheque operated accounts in branches in rural and semi-urban areas. It is Rs.500 for non- cheque operated account and Rs.1000 for cheque operated account in other branches. For pension accounts the minimum balance is Rs. 5/- for non-cheque operated accounts and Rs. 250/- for cheque operated accounts
  5. 5. REGULAR SAVINGS BANK ACCOUNT Requirements For Opening Account Duly Filled Application Form , Proof of identity, Address proof, Introduction, Passport size photograph INTEREST RATE 4.00% p.a. INTEREST PAYMENT Interest is paid on daily product basis. LOAN AGAINST DEPOSIT Not permitted
  6. 6. REGULAR SAVINGS BANK ACCOUNT BENEFITS International VISA Debit Card Instant Credit of Outstation Cheque upto Rs.15,000/- Internet banking facility. Multicity Cheque facility Nomination facility Standing Instruction Facility Speedy transfer of funds Anywhere Banking Insurance Products VALUE ADDITIONS Maintain an average quarterly balance of Rs.10,000 and above in the account and get the following facilities:- Inland drafts / mail transfers not exceeding Rs.10,000/- per month, limited to 2 occasions in a month per depositor issued without any commission/exchange. Collection of inland outstation instruments such as cheques / drafts / dividend warrant etc not exceeding Rs.10,000/- per month irrespective of the number of instruments per depositor is done without collection charges.
  7. 7. SAVINGS BANK NO FRILL ACCOUNT Details Description ELIGIBILITY Individuals, including minors who have completed 10 years of age and pensioners. Joint accounts are permitted. MINIMUM BALANCE Rs.5/- WITHDRAWAL FROM ACCOUNT Only by withdrawal slip. Cheque book will not be issued INTEREST PAYMENT 4.00% p.a. AMOUNT OF TRANSACTIONS The balance in the account should not exceed Rs.50,000 at any point of time and the total credit in the account should not exceed Rs.1,00,000/- in a year. NO. OF TRANSACTIONS 25 transactions per half-year
  8. 8. SAVINGS BANK NO FRILL ACCOUNT Penalty For Exceeding The Number Of Transaction No penalty VALUE ADDITIONS / CONCESSIONS No other value addition / concession allowed in the account. Collection of instruments and issue of DD/MT will attract normal charges. Debit Cards are not issued. BRANCHES WHERE ACCOUNT CAN BE OPENED All branches of the Bank
  9. 9. CURRENT ACCOUNT IOB – CD CLASSIC Details Description ELIGIBILITY Proprietary concern, Partnership firm, HUF, Limited companies, corporations, SMEs, Trusts, Societies, clubs, Association, Local Bodies, Govt. Departments subject to RBI directives MINIMUM BALANCE REQUIREMENT The average daily balance in the current account during last three months should not be less than Rs.1 lac.
  10. 10. IOB CD-SUPER CURRENT A/C  Eligibility : Proprietary concern, Partnership firm, HUF, Limited companies, corporations, SMEs, Trusts, Societies, clubs, Association, Local Bodies, Govt. Departments subject to RBI directives  Minimum Balance Requirement : The average daily balance in the account over the last three months should not be less than Rs.5 lac.  Issue of Demand drafts @ 50% concession  Transfer of funds thro' NEFT free.  Anywhere Banking  Name printed cheque books free of cost.
  11. 11.  Personal Accident insurance covers of Rs. Five Lakhs free of cost.  International Debit Card without charges to all employees and owners.  Online Tax payment facility.  Outstation cheque collection charges @ 50% concession.  Transfer of funds thro' RTGS @ 50% concession.  Utility Bills payment facility.
  12. 12. DEPOSITS
  13. 13. DEPOSITS  FIXED DEPOSIT A fixed deposit account allows you to deposit your money for a set period of time, thereby earning you a higher rate of interest in return. Fixed deposits also give you a higher rate of interest than a savings bank account.
  14. 14.  Who can apply for a fixed deposit account? Individuals and organizations with the intention of retaining their savings for a fixed period for some future use.  What are the benefits of a Fixed Deposit?  The option to withdraw the deposit at any time before maturity without any difficulty  You can avail loans upto 85% of the principal  Variable deposit periods ranging from 6 months to 120 months  You get interest once in 6 months  The minimum deposit amount is Rs. 1,000/- Deposits can be made in multiples of Rs. 100/-.
  15. 15.  RECURRING DEPOSIT Eligibility :  Salaried individual, small trader, housewife, student or a rural saver.  Customers having a limited or stipulated income and require a large amount of money but can only save small amounts every.
  16. 16. Features  Interest is compounded every quarter  Variable deposit periods ranging from 6 months to 120 months  Loans available up to 90% on the principal and also on the interest accrued  Deposit can be closed prematurely without any difficulty
  17. 17.  Interest Rate As Applicable for Term Deposits  Minimum amount of deposit The minimum deposit is Rs. 50/- per month in multiples of Rs. 5/-.
  18. 18. TERM DEPOSITS  Moneys deposited for specific periods come under the category of Term Deposits.  The Depositor invests the money with the bank for a specific period to mature on a specific future date as required by the depositor.  Term deposits can be made for periods ranging from 7 days to one hundred and twenty months. In case of deposits in the name of minors the deposits can be more than 120 months  provided the bank is convinced that it is necessary to do so for the protection of minor’s  interest.
  19. 19. TERM DEPOSIT RATES  7days to 120 days – 7.25%  121days to 179days – 7.50%  180days to 269days – 8.25%  270days to less than one year – 8.50%  1year to 5years and above – 9.00%
  20. 20. RETAIL LOANS  Clean Loan Eligibility : Employees in Government, Public Sector Undertakings, reputed private enterprises, firms, companies etc. and confirmed in service. The take home pay, after deduction of the proposed loan instalment should be more than 50% of the gross pay. LIC agents are also eligible to apply for the loan subject to conditions.
  21. 21.  Purpose : For any purpose including any social / financial commitment. a) Ten times of salary or Rs.15.00 lac whichever is lower, if your employer undertakes to deduct the loan installment from salary and remit to us or the salary is routed through the loan granting branch. b) For others, it is 5 times of salary or Rs.1.00 lakh whichever is lower. c) For LIC agents, the maximum loan is up to 10 times average monthly commission or Rs.10.00 lakh whichever is lower.
  22. 22.  Repayment : In a maximum of 60 months in case the loan is for 10 month salary and 36 months in case the loan is for 5 months salary.  Security : Two, third party personal guarantee, the salary of each guarantor being at least equal to that of the borrower.  Documents required : Application form, Salary certificate of applicant and guarantor with deduction particulars, undertaking letter from employer to deduct monthly instalment and recover the dues from terminal benefit in case of necessity.  Processing fee : One time processing fee of Rs. 204/- per lakh or part thereof(subject to change).
  23. 23. INTEREST RATES  Working Capital – Floating Rate of Interest of 13.25 %  Term Loan – 13.75%(floating rate)  Pushpaka, loan for purchase of new vehicles – 10.75%  Pensioner’s loan scheme – 14.25%  Akshay - loan against life policies of LIC and private insurers approved by IRDA – 14%
  24. 24. HOUSING LOANS (FOR PURCHASE/CONSTRUCTION/REPAIR/RENOVATION Payment Options(R epayment) Rate upto 5years Rate >5yrs to 10yrs More than 10 years Loan Amount Upto 30lakshs 10.25% 10.25% 10.25% 30lakhs to 75lakhs 10.50% 10.50% 10.50% Above 75lakhs 10.75% 11.00% 11.25%
  25. 25. EDUCATIONAL LOANS-VIDYA JYOTI  Eligibility Should be an Indian National Should have secured admission to professional/technical courses in India or abroad
  26. 26.  Purpose Loan is made available for Graduation/Post graduation/Diploma/Computer education in any recognized State/Central Government/University, professional courses including Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, courses like ICWA, CA, CFA, etc., courses conducted by IIM, IISC, XLRI, NIFT etc, courses offered in India by reputed foreign universities/Evening courses of approved institutes, regular degree/ diploma courses like Aeronautical , Pilot training , shipping etc approved by Director General of Civil Aviation/ shipping if the course is pursued in India. Incase the course is pursued abroad, the institute should be recognized by the competent local aviation/ shipping authority. For studies abroad, loans will be made available only for Graduation and Post Graduation Courses offered by Reputed Universities and not for diplomas
  27. 27.  Margin For loans upto Rs. 4.00 lakh Nil For loans above Rs. 4.00 lakh Studies within India 5% For studies abroad 15%
  28. 28.  Security For loans upto Rs. 4.00 lakh Co obligation of parents . No security For loans above Rs. 4.00 lakh and up to Rs.7.50 lakh Co obligation of parents together with collateral security in the form of suitable third party guarantee. For loans above Rs.7.50 lakh Co obligation of parents together with tangible collateral security .Collateral security in the form of NSC /KVP/ LIC Policy/ Gold/ Shares/Debentures or immovable properties Bank Deposits in the name of student/Parent/Guardian or any other third party with suitable margin. Wherever the land/ building is already mortgaged the unencumbered portion can be taken as security on second charge basis provided it covers the required loan amount. In case the loan is given for the purchase of computer , the computer has to be hypothecated to the bank..
  29. 29.  Repayment Repay the loan in equal monthly Instalments for a maximum period of 5 - 7 years excluding holiday period.
  31. 31. CORPORATE BANKING  TERM LOAN- FINANCIAL ASSISTANCE: The growth of SME units largely depends on their proper financial management. They should closely monitor their funds flow and cash flow at every stage to avoid mismatch, which will dampen their operational activities. IOB provides total financial solutions to SME units by way of various schemes to support the financial needs of SME units. Term Loan: Term Loans are extended for the purpose of acquisition of fixed assets. viz., land, building, plant and machinery for setting up of new industrial units or expansion/modernisation of existing units. Financing for the purchase of second hand machinery (both indigenous as well as imported) can also be considered subject to certain conditions .
  32. 32.  Margin: Bank will normally finance upto 75% of the value of fixed assets and the balance amount should be brought by the applicant as margin. However depending upon the activity and quantum of advance the bank may either increase the margin or decrease the margin.  Security / Third Party Guarantee: Bank will not insist for collateral security / Third Party Guarantee for total credit limits upto Rs.10 lakhs for SME borrowers. In respect of credit limits above Rs.10 lakhs and upto Rs.100 lakhs Collateral Security / Third Party Guarantee may be waived for deserving cases and those limits will be covered under Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE).
  33. 33.  Repayment: The repayment of term loan will be fixed based on the cash generation of the unit and gestation period. Suitable holiday period will be allowed for repayment of the term loan. Interest Rates: The details of interest rates for various categories of SME advances are available separately.
  34. 34. WORKING CAPITAL LOAN  The manufacturing / Service activity of the unit can smoothly progress while adequate working capital funds are available. The Bank provides necessary working capital assistance to MSME units. The quantum of working capital funds can be ascertained by looking into the working capital cycle of the unit. Working Capital Cycle can be explained by way of flow chart as below: Cash > Raw Material > Work in Process > Finished Goods > Receivables > Cash It is normally presumed that the working capital cycle will be of three months i.e. the period taken for conversion of cash into raw material, raw material into finished goods, finished goods into receivables and receivables into cash. Depending on the nature of activity and various other factors it may be either more than 3 months or lesser than 3 months. The working capital limits can be availed by way of cash credit, bills limit, Letter of Guarantee, Letter of Credit etc.,
  35. 35.  Security / Third Party Guarantee: Bank will not insist for collateral security / Third Party Guarantee for total credit limits upto Rs.10 lakhs for SME borrowers. In respect of credit limits above Rs.10 lakhs and upto Rs.100 lakhs Collateral Security / Third Party Guarantee may be waived on deserving cases and those limits will be covered under Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE). Interest Rates: The details of interest rates for various categories of SME advances are available separately
  36. 36. MSME SCHEMES IOB MICRO ONE ELIGIBILITY MICRO ENTERPRISES falling under the norms as below: (only new connections under Micro Sector and the scheme is not applicable to existing borrower clients) Manufacturing : Original investment in Plant and machinery upto Rs.25.00 lacs Service Enterprises: Original investment in Equipments upto Rs.10.00 lacs COVERAGE ONLY NEW UNITS seeking credit facilities with above investment norms
  37. 37. LOAN AMOUNT Maximum Rs.50.00 lacs (Cash Credit + Term Loan with a ceiling of Rs.22.50 lacs for Term Loan) Can be granted separately or as a combined credit facility MARGIN 10% for working Capital against stocks and 15 % against Book debts. REPAYMENT 84 EMIs for Term Loan (for combined facility as well) Cash Credit to be renewed annually INTEREST RATE Both for Working Capital and Term Loan Base Rate + 1.75% i.e., 12.25 % at present SECURITY Only prime security created out of this loan (No Collateral Or Third Party Guarantee To Be Obtained)
  38. 38. CREDIT GUARANTEE To be covered under CGTMSE Scheme and the fee to be borne by the borrower PROCESSING FEE Upto Rs. 10.00 lacs .... Rs. 1000/- Above Rs.10.00 lacs and upto Rs.50.00 lacs .... Rs. 5000/- (applicable for both CC and Term Loan)
  39. 39. IOB MSE PLUS  IOB MSE PLUS is a novel scheme introduced by IOB for the benefit of Micro and Small Enterprises (MSEs). Under the scheme, MSEs can avail both their working capital and long term investments needs in the form of a single term loan in a hassle free manner and repay the entire loan (including working capital) over a period of time.  Eligibility Both manufacturing and service enterprises coming under Micro and Small Enterprises category as per MSME Act 2006.  Purpose  To construct/purchase work shed/factory premises  To purchase plant/machinery/equipments  To meet working capital needs  Quantum of loan: Upto Rs.100 lacs, based on the need and assessment by the Bank.
  40. 40.  Mode of Assistance: By way of Term Loan for fixed assets and working capital repayable in 60 to 120 months, with a holiday period of 6 to 18 months.  Interest Rate:  As applicable to Micro and Small Enterprises  Rate of interest linked to base rate  Present Interest are as under:  Upto Rs. 2 lacs ... ... ... 9.75 % + 1.50 = 11.25  Rs. 2 lacs and upto Rs. 25 lacs ... 10.75 % + 1.50 = 12.25  Rs.25 lacs and upto Rs. 100 lacs ... 11.25 %+ 1.50 = 12.75  Margin:  For construction or outright purchase of work shed / factory premises ..... ..... 30%  For purchase of plant / machinery/ equipments, etc., 15 %  For working capital ..... ..... 20 %  CGTMSE Scheme: All loans under MSE PLUS SCHEME are to be covered under Credit Guarantee Scheme of CGTMSE
  41. 41. IT & ITES BPO Indian Information Technology (IT) and Ites-BPO sector playing vital role in the growth of our country’s economy. The growth of the Industry in India is more than 28%. Due to liberalization of Indian economic policy, the growth of IT industry is in commendable position. Due to cost advantage, availability of skilled manpower, quality services are the main reasons for the growth of IT industry in India. For all the finance needs of IT industry, customers can approach any bank branch of INDIAN OVERSEAS BANK.
  42. 42. IOB EXPO GOLD CARD FOR EXPORTERS Indian Overseas Bank has formulated Gold Card Scheme for its exporter clients based on the scheme drawn up by Reserve Bank of India. The scheme aims to ensure easy availability of export credit on better terms to credit worthy exporters with good track record. The Gold Card is known as "IOB Expo Gold Card" .The salient features of the scheme are as under :- Eligibility under the Scheme  Exporters with bank's credit rating of A+ or A will be eligible under the scheme.  Exporters whose accounts have been classified as "Standard" continuously for a period of three years and where there are no irregularities /adverse features in the conduct of the accounts will be considered.  The scheme will not be applicable to those exporters who are blacklisted by ECGC or included in RBI's defaulter's list or included in Bank's list of watch category accounts.  Fixation of Credit Limit  Line of Credit will be sanctioned for a period of three years with a provision for automatic renewal under this scheme subject to fulfillment of the terms and conditions of sanction.
  43. 43.  Subject to availability of Foreign Currency, efforts will be made to meet the PCFC requirements of the Gold Card holders by giving them priority over other export borrowers. Likewise, Bank will also consider providing foreign currency term loans to Gold Card Holder on priority basis.  Rate of Interest /Service charges  Relaxation in interest rates upto a maximum of 0.25% .on rupee export credit based on credit ratings of the exporters. The concessional rate of interest applicable upto 90 days on post- shipment rupee export credit will be extended upto 365 days. This will not apply to overdue bills.  Bank will offer discount of 10% in charges and fee structure for various services/transactions.  The Tenure of Card  The Gold Card will be issued normally for a period of 3 years and will be automatically renewed for a further period of three years unless there are adverse features /irregularities in the account. Further, bank will have the right to recall the card at any time in case of any misuse of the card or observance of any violation of the terms and conditions.
  44. 44. NRI BANKING
  45. 45. FOREIGN CURRENCY (NON RESIDENT) ACCOUNTS NON-RESIDENT EXTERNAL (NRE) ACCOUNTS  NRE Accounts are Indian rupee denominated accounts that can be maintained as Savings, Current or Term Deposit.  Accounts can be maintained individually or jointly with other NRI/PIO.  Credits to NRE accounts can be by way of remittance from abroad in permitted currencies, or by transfer from other NRE/FCNR accounts.  The entire balance in the account is fully repatriable.  Loan facility available against the security of NRE Term deposits.  Interest income is free from income tax  Premature closure of deposit is permitted subject to conditions  Operation in the account allowed by duly executed power of attorney or mandate for local payments.  Nomination facility available. Nominee can be resident Indian.
  46. 46. NON RESIDENT ORDINARY(NRO) ACCOUNT  NRIs and PIO can maintain NRO account for bonafide local banking transactions denominated in Rupees, not involving any violation of the provisions of FEMA and rules and regulations made thereunder.  (Note: Opening of accounts by individuals/entities of Bangladesh / Pakistan nationality / ownership requires prior approval of Reserve Bank of India)  When a resident Indian becomes non resident, the existing account in India will be designated as NRO account.  The accounts can be in the form of savings, current or term deposits.  Joint account with other NRI(s)/PIO or close resident relative is permitted.  Remittances from abroad and legitimate dues in India of the account holder can be credited to the account.  Interest income is subject to income tax.
  47. 47. NON-RESIDENT ORDINARY(NRO) ACCOUNT  The following debits are permitted in the account  (i) All local payments in rupees including payments for investments in India subject to compliance with the relevant regulations made by the Reserve Bank. (ii) Remittance outside India of current income like rent, dividend, pension, interest, etc. in India of the account holder. (iii) Remittance up to USD One million, per financial year (April-March), for all bonafide purposes,to the satisfaction of the bank.
  48. 48. RESIDENT FOREIGN CURRENCY (RFC) ACCOUNT  A Resident Foreign Currency account in India can be maintained by a Non-resident Indian who has returned home for permanent settlement, after staying abroad for a minimum period of one year. An RFC account can be opened without any regulatory approval from the Reserve Bank of India.  RFC accounts can be maintained in USD/EUR/GBP/JPY/AUD/CAD in the form of Savings / Term Deposit  Credits to the account can in any of the following means:  Balances standing to the credit of NRE and FCNR accounts at the time of return Income from overseas assets or sales proceeds from overseas assets Entire amount of pension received from abroad  Balance in the account can be remitted abroad for bonafide purposes either for yourself or your dependants. If you decide to go abroad again you can transfer your funds to NRE/FCNR account(s) Interest earned on RFC account is subject to tax.
  49. 49. NRI HOME LOAN SCHEME  For purchase /construction of residential building in India or for repair/renovation of existing houses  Eligibility a) Maximum 80% of construction or purchase cost – maximum INR 500 lacs b) Maximum INR 5 lacs for repair and renovation c) Minimum monthly income of applicant should be INR 10000  Repayment period - Maximum 180 Equated Monthly Instalments (EMIs) for construction/purchase and 60 EMIs for repair/renovation
  50. 50.  If property is let out on rent, entire rental income should be paid to the loan account  Repayment by close relative in India permitted  Holiday period for repayment 6 months for acquisition, 12 months for construction and 3 months for repair/renovation  Mortgage of property as security  Processing fee applicable
  52. 52. AGRICULTURAL SHORT TERM LOANS  New Kisan Credit Card : • Objective : To meet investment and credit requirements of farmers. • Eligibility : Existing farmer clients & also the prospective farmers • Margin : Upto Rs 100000 – Nil Above Rs 100000/- 15 % to 25 % • Repayment : Term loan - Max. 5 years • Security : Upto Rs 100000 – Hypothecation of crops / assets created out of loan. Above Rs 100000/- Suitable Collateral
  53. 53.  AGRI GENERAL PURPOSE CREDIT CARD • Objective : To provide liquidity to meet any financial needs relating to Agricultural Investments or Consumption. • Eligibility : Customers in rural and semi-urban areas, members of Self Help Groups and Joint Liability Groups • Amount : Maximum Rs 25000 • Security : Nil • Rate Of Interest : At Prime Lending Rate
  55. 55. LIFE INSURANCE  Any IOB branch caters to personal insurance requirements .  IOB has a platter of personal Insurance products from LIC of India on offer to meet customer needs
  56. 56. GROUP INSURANCE  IOB offers Insurance linked products with group insurance cover provided by LIC of India. Some of the group life products are as follows:  Life cover of Rs.1 Lac (Accidental Death -Rs.2 Lacs) to our account holders under IOB- Jeevan.  Life cover for our home loan borrowers under Liability Insurance Scheme.  Life Cover for Students availing Educational Loans and also for their parents under Vidya Jyothi with Suraksha.  Life Cover for students studying in Colleges under Vidya Suraksha
  57. 57. MUTUAL FUND SCHEMES  Bank is distributing mutual fund schemes of top performing Mutual Funds to cater to the investment needs of customers and others as Corporate Distributor.  IOB distributes all the New Fund Offers of the Mutual Funds and also facilitate investment in the ongoing schemes.  Investments in mutual fund schemes can be routed through the bank branches.
  58. 58.  Some Mutual Fund Schemes are : • Sundaram BNP Paribas Mutual Fund • Franklin Templeton Asset Management (I) Pvt. Ltd.- • Principal Pnb Asset Management Company Private Ltd- Equity. • Principal Pnb Asset Management Company Private Ltd.- Debt • Tata Mutual Fund-Equity Scheme • Tata Mutual Fund-Debt Scheme • Kotak Mutual Fund • LIC Mutual Fund • UTI Mutual Fund • DBS Chola Mutual Fund
  59. 59. THANK YOU!
  60. 60. Campus Ahmedabad Campus: Karnavati Knowledge Village, A/907,Uvarsad, S.G.Highway, Gandhinagar Kolkata Campus: Infinity Benchmark Tower 10th Floor, Plot - G1, Block - EP& GP, Sec - V, Salt Lake, Kolkata. Reg. Office: 407, Zodiac Square, 4th Floor Opp. Gurudwara, S.G. Road, Bodakdev, Ahmedabad.