Indian bank

Profile of the bank:

Indian Bank is one of the indigenous banks of India that emerged as a result of the
Swadeshi Movement during the British Raj. The bank was established on 15th of
August, 1907. One of the prime figures associated with the establishment of the bank
was V. Krishnaswamy Iyer, a lawyer from Madras (Now Chennai). The bank soon
spread its wings outside India too, and opened its branch in Colombo, Sri Lanka in the
year 1932 and Rangoon, Burma in 1940. The bank was further Nationalized by the
Government of India in the year 1969.

Global Presence
The modest beginning made by the Indian Bank has come a long way since then, with
1642 branches located nationwide within India and Overseas branches in Singapore
and Colombo as of April 2009. The bank also has 40 Overseas Correspondent banks in
70 countries, giving a strong presence internationally. A 22,000 strong workforce of
dedicated employees takes pride in serving the Indian Bank.

Banking Activities
Indian Bank offers a wide variety of Banking Products and Services to its customers,
including various Deposit Schemes, Loan Options, Financial Services, Stock Investment
Services and a number of specialized services such as Remittance, Collection, 7 Day
Banking Branches, Cash Management and Electronic Funds Transfer. As of April 2009,
the bank has Core Banking Solution (CBS) implemented in its 1642 branches and 66
extension counters. The bank has 755 connected Automatic Teller Machines (ATMs)
installed in 225 locations nationwide.

Subsidiary Companies
Apart from its Regular Banking Services, the Indian Bank has also been offering various
other services through its 3 subsidiary companies, which are Indbank Merchant Banking
Services Ltd., IndBank Housing Ltd. and IndFund Management Ltd.
Rural Banking
Indian Bank has been a leader in bringing new initiatives for development of rural
banking and extending help to the farmers of India. The bank has received award from
Honorable Union Minister of Finance for Excellence in Agricultural Lending. Apart from
it, the bank also received the Best Performer Award for Micro-Finance activities in Tamil
Nadu and Union Territory of Puducherry from National Bank for Agriculture and Rural
Development (NABARD).

Personal Banking
Under this it offers fixed deposits, saving accounts, recurring accounts, saving accounts
for kids and senior citizens, internet banking, ATM facility, debit/credit cards, home
loans, personal loans.

NRI services
It offers banking products and services to NRI clients such as saving accounts,
remittance facilities, forex advisory services, home loans, etc.
Indian Bank provides cash management services (CMS), eletronic funds transfer
schemes. It also provides seven-day banking at few of its branches.

Time-line
1932: Indian Bank opened a branch in Colombo.
1935: IB opened a branch in Jaffna.
1940: IB opened a branch in Rangoon (Yangon).
1941: IB closed the Rangoon branch but opened branches in Singapore (where future
branch manager KB Pisharody(1915-1998) started his career in the same year),
and in Kuala Lumpur, Ipoh, and Penang. The rapid advance of the Japanese
Army forced IB to close all its branches in Malaya and Singapore.
1942: IB closed the Colombo branch.
Post-WWII: IB reopened its Malayan and Singapore branches.
1948: IB reopened its branch in Colombo.
1960: IB acquired Mannargudi Bank (est. 1932) and Salem Bank (est. 1925).
1969: The Government of India nationalized 14 top banks, including Indian Bank.
 1973: Indian Overseas Bank, Indian Bank and United Commercial Bank established
United Asian Bank Berhad in which IOB held 16.67% of the paid up capital, as a
result of a new banking law in Malaysia that prohibited foreign government banks
from operating in the country.
1978: IB became a technical adviser to P T Bank Rama in Indonesia, the result of the
merger of P T Bank Masyarakat and P T Bank Ramayana.
1980: IB, Bank of Baroda, and Union Bank of India established IUB International
Finance, a licensed deposit taker in Hong Kong. Each of the three banks took an
equal share in the joint venture.
1987: IB acquired Bank of Tanjore (Bank of Thanjavur) in Tamil Nadu in a rescue.
1998: Bank of Baroda bought out its partners in IUB Intl. Fin. in Hong Kong. Apparently
this was a response to regulatory changes following Hong Kong’s reversion. IUB
became Bank of Baroda (Hong Kong), a restricted license bank.
2007: IB celebrated its centenary year.

Indian bank is a premier bank owned by the Government of India.

 Established on 15th August 1907 as part of the Swadeshi movement
 Serving the nation with a team of over 22000 dedicated staff
 Total Business crossed Rs.1,24,413 Crores as on 31.03.2009
 Operating Profit increased to Rs. 2228.83 Crores as on 31.03.2009
 Net Profit increased to Rs.1245.32 Crores as on 31.03.2009
 1648 Branches spread all over India

International Presence
 Overseas branches in Singapore and Colombo including a Foreign Currency
Banking Unit at Colombo
 240 Overseas Correspondent banks in 70 countries

Diversified banking activities - 3 Subsidiary companies

 Indbank Merchant Banking Services Ltd
 IndBank Housing Ltd.
  IndFund Management Ltd
A front-runner in specialised banking
 90 Forex Authorised branches inclusive of 1 Specialised Overseas Branch at
Chennai exclusively for handling forex transactions arising out of Export, Import,
Remittances and Non Resident Indian business
 1 Small Scale Industries Branch extending finance exclusively to SSI units
Leadership in Rural Development
 Pioneer in introducing Self Help Groups and Financial Inclusion Project in the
country
 Award winner for Excellence in Agricultural Lending from Honorable Union
Minister for Finance
 Best Performer Award for Micro-Finance activities in Tamil Nadu and Union
Territory of Pondicherry from NABARD
 Established 7 specialized exclusive Microfinance branches called "Microstate"
across the country to cater the needs of Urban poor through SHG (Self Help
Group)/JLG (Joint Liability Group) concepts
 A special window for Micro finance viz., Micro Credit Kendras are functioning in
44 Rural/Semi Urban branches
 Harnessing ICT (Information and Communication Technology) for Rural
Development and Inclusive Banking
 Provision of technical assistance and project reports in Agriculture to
entrepreneurs through Agricultural Consultancy & Technical Services (ACTS)
A pioneer in introducing the latest technology in Banking
 100% Business Computerization
 168 Centers throughout the country covered under 'Anywhere Banking'
 Core Banking Solution (CBS) in 1648 branches and 61 extension counters.
 775 connected Automated Teller Machines(ATM) in 250 cities/towns
 24 x 7 Service through 40000 ATMs under shared network
 Internet and Tele Banking services to all Core Banking customers
 e-payment facility for Corporate customers
  Cash Management Services
 Depository Services
 Reuter Screen, Telerate, Reuter Monitors, Dealing System provided at Overseas
Branch, Chennai
 Indian Bank Credit Card facility Launched
 I B Gold Coin system lunched

Strategic Tie-Up with HDFC Standard Life Insurance Company

Indian bank with over 90 years of standing in the financial market with the reputation for
excellent customer service has entered into a strategic tie-up with HDFC Standard Life
Insurance Company Ltd., the first in the private sector to receive the Certificate of
Registration for foray into Life Insurance business for distribution of latter’s insurance
products. A Memorandum of understanding has been signed by the Bank with the
Insurance Company on 8th February 2001 to this effect. The Bank has to its strength
1377 branches spread across the country with ready built infrastructure and the
expertise in marketing financial products. Initially the insurance products will be
marketed through select branches in the South where the Bank has strong presence. 
The insurance products from HDFC Standard Life, will be competitive and customer
friendly.   The tie-up would benefit the Bank's customers, as they will have wider choice
of life insurance policies at competitive premium.
Awards
Indian Bank received the Skoch Challenger Award for its financial inclusion initiatives in
Pondicherry and Dharavi.
The bank bagged first prize for excellent performance under SHG-Bank Linkage
Programme conducted by NABARD.
Three branches of Indian Bank located in Tamil Nadu were awarded best performing
commercial bank.

Date of Establishment : 15-08 1907

Revenue : 1456.05 crores
Market Capital : 70,91,20,50,000
Corporate Address : 66 Rajaji Salai, Chennai-600001, Tamil Nadu.

Management Details
Chairperson - M S Sundara Rajan
MD - M S Sundara Rajan
Directors - A Ganesa Rathnam, A S Bhattacharya, A Subramanian,
Anup Sankar Bhattacharya, Ashok Gupta, C K Ranganathan, C R Gopalasundaram, G
Charath Chandran, Gundmi Sudhakar Rao, Kumar Sanjay Krishna, M S Sundara
Rajan, Narendra Kumar Agrawal, Saria Khan, T T Natarajan, V Rama Gopal
Business Operation Bank (Public)
Financials Total Income - Rs. 78657.746 Million (year ending March 2009)
Net Profit - Rs. 12453.23 Million (year ending March 2009)
Company Secretary A Ganesa Rathnam
Bankers Auditors PL Mittal & Co,
Viswanathan & Swaminathan,
Ganesan & Co,
Suri & Co,
Kalyanasundaram & Co,
Chandran & Raman

The Income and Expenditure for the period 2008-09

Particulars 2007-08 2008-09 Absolute Growth %Growth

Total Interest
Income 5212.97 6830.33 1617.40 31.03
Total Interest
Expenditure 3159.07 4221.81 1062.70 33.64
Net Interest
Income 2053.90 2608.52 554.62 27.00
Profit on sale of
Investments 179.01 194.77 15.76 8.80
Net operating
Income 3059.59 3643.96 584.37 19.10
Operating
Expenses 1400.29 1415.13 14.84 1.06
Operating Profit 1659.30 2228.83 569.53 34.32
Provisions and
Contingencies including
depreciation on account
of transfer of securities
to HTM category 650.56 983.51 332.95 51.18

Net Profit 1008.74 245.32 236.58 23.45

Distribution of shareholdings as on 31.3.2009

 Category No. of Shares held Amount (Rs.) % of
Shareholding
1. Government of India 343820000 3438200000 80.00
2. Banks & Financial
Institutions(Central /
State Institutions) 1669987 16699870 0.39
3. Mutual Funds & UTI 13148375 131483750 3.06
4. Bodies Corporate 4380648 43806480 1.02
5. FIIs 52494248 524942480 12.21
6. Resident Holdings, etc. 14256742 142567420 3.32

TOTAL 429770000 4297700000 100.00

Indian Bank
Madipakkam Branch
Plot A14, First Street, Senthuran Colony, Madipakkam, Chennai 600091
Branch Profile
Indian Bank, established in 1907, is a major Indian Commercial Bank headquartered in
Chennai (Madras), India. The Madipakkam branch was formed with the acquisition of
Bank of Tanjore (Bank of Thanjavur) in Tamil Nadu in a rescue mission of the banking
industry in India in the year 1990. Year 1987 was a period when the Bank of Thanjavur
was running at a loss and the Indian Bank acquired many branches of it. In 1990, the
takeover of the Madipakkam branch marked the complete takeover of the Bank of
Thanjavur by Indian Bank.
The branch now boasts of a very high number of transactions comparing to other banks
and branches in the sub-urban areas. The success of the Indian bank led to many
banks establishing their branches in that locality. The competing banks to the
Madipakkam branch are the State Bank of India, ICICI bank, Axis Bank, City Union
Bank, ING Vysya Bank, State Bank of Mysore, HDFC Bank. The branch has total
approximate savings bank deposits of 82.46 crores, Demand Deposits of about 4.25
crores, Term deposits of about 94.51 crores. The advances of the branch totals to 42.4
crores. The cash balance position as on 25 January 2010 was about 2547600. The
bank had 40 savings bank accounts, 7 current account, 27 fixed deposits account, 156
re-investment plans, 70 recurring deposits account opened in a period of one month
starting 1 January 2010.
The branch is currently managed by Mr. S Ramakrishnan, Chief Manager of the Indian
Bank and is assisted by seven senior officers. The bank is one of the major branches of
the Indian bank and has 12 dedicated staff working from 08:30 AM until 03:00 PM.
The various departments of the bank include the account opening section, the deposits
section, the clearance section, the loans section, the pension section, demand drafts
section with as many as seven cash counters and a main counter for transaction over
and above Rs.50000.
I underwent my Internship Training at Indian Bank situated in Madipakkam. The
learning process was very effective and I was able to gain knowledge on the overall
functioning of the bank and the banking industry. The one month of internship training
was split up into four fragments of one week each and I worked in different departments
of the bank in each week and learnt the functioning of the department in detail. On the
final day of every week, I would assist the officers in the closing, tallying and checking of
the work done during that particular day. Since the branch was computerized under the
CBS (Core Banking System), and the systems were password and fingerprint protected,
I could not work alone in a system but had the opportunity to work for ample of time in
the system and learn under the careful guidance and instruction of the Assistant
Manager. Cognizant Technology Solutions create the software used by the Indian Bank.
The software is named BANCSLINK and is specially designed for Indian Bank.
I was at the Deposits section during the first week of the training period. I learnt the
various kinds of deposits the bank accepts, and how each kind of deposit differs from
the other deposits. The various deposits the bank provides are Savings Bank Account,
Current Account, Fixed Deposit, Re-Investment Plan and Recurring Deposit among the
various other Term deposits which include Variable Recurring Deposit, Insured
Recurring Deposit, NRE SB And NRE Term Deposits. The major deposits that were
opened were the Savings Bank Account, Fixed Deposit, Re-Investment Plan, and
Recurring Deposit.
The Savings Bank Account are for all kind of people who can be Individuals (Single or
Two or more individuals jointly), Minors through the natural guardians (either jointly with
the minor or singly or guardians appointed by a competent court), Illiterate people, blind
people, Clubs, Societies, Associations, Places of religious worship, Charitable
institutions (which are approved by the bank), Trusts, HUF, SHGs, Government
organizations mainly for the purpose of saving money. The savings bank kind of
account is offered for the people to cultivate the habit of saving money.
Current accounts are cheque operated accounts maintained for mainly business
purposes. Unlike savings bank account, no limits are fixed by banks on the number of
transactions permitted in the Account. Banks generally insist on a higher minimum
balance to be maintained in current account. Considering the large number of
transactions in the account and volatile nature of balances maintained overnight banks
generally levy certain service charges for operating a Current account. The Current
Account deposits can be opened by a person in his/ her own name, two or more than 2
people in their joint names with Either or Survivor, Joint or Survivor and anyone or
survivor or survivors. Companies, partnership firms, Clubs, Associations, Religious,
educational, charitable and other institutions (on production of necessary documents,
copies of rules, byelaws duly attested by authorized people) can also open Current
Accounts. The bank does not offer interest to the current account balance.
The fixed deposit can be opened by anyone from Individuals (a) single (b) Two or more
individuals severally or jointly (c) Minors (d) Illiterates (e) Blind people to Executors and
Administrators. Liquidators and Receivers, Sole Proprietorship concerns, Joint Hindu
families, Partnership firms, Limited Companies, Trusts, Non-Corporate bodies like
Clubs, Committees, Associations, Schools, Colleges, Government / Semi-Government
bodies can also open a fixed deposit with the bank for a minimum period of 15 days up
to a maximum period of 120 months.
Re-Investment Plan, a time deposit to earn cumulative compounded interest with easy
liquidity is also like fixed deposit but earns a cumulative interest. The minimum period
for this kind of deposit is 6 months.
The Recurring Deposit is a regular monthly savings grow into a large sum to meet the
financial needs at the end of the agreed period. Loan can be taken up to 90% of the
principal amount with rate of interest at 2% p.a. over the rate of interest payable to
deposit.
I was at the clearance section during the second week of my internship. I learnt the
whole system of how the cheques and demand drafts are cleared through the clearing
house. Since the whole system of banking is computerized under the CBS (Core
Banking System), I did not have much work to do but to feed in the details of the cheque
and the drawee and the drawer into the system. I simultaneously learnt the process of
clearance and return of cheque. I also learnt that traditional arrangements involved the
exchange of cheques, computation of net payment obligations among the participating
banks and settlement of claims through funds transfers in the books of the settling bank.
The place where the exchange of instruments occurs and the claims are settled is
known as the Clearing House.
I learnt that all payment instructions made through the medium of cheques are debit
transactions. A debit transaction occurs when the intended recipient initiates the
payment transaction by depositing the instrument in his bank. During the course of a
business day a number of instruments are deposited with a bank for collection by its
customers. These instruments may be drawn on different branches of various banks
and a collecting bank has to physically present the instruments for collection to each
drawee bank/branch. The clearing system provides a convenient and well established
institutional mechanism to take care of the problem of physical delivery of instruments
as well as funds transfer between different banks.
The clearing process begins with the deposit of a cheque in a bank. The cheque (along
with other cheques) is delivered to the bank/branch where it is drawn. The cheque is
passed for payment if the funds are available and the banker is satisfied about the
genuineness of the instrument. The banker carefully scrutinizes the cheque drawn. The
cheques that are unpaid are returned to the presenting bank through another clearing
called the Return Clearing. The realisation of the funds occurs after the completion of
return clearing and by the absence of an unpaid cheque. The cheque number is noted
and the 9-digit MICR number at the bottom of the cheque refers to the particular branch.
The first three digits is the area code, the next three are the bank code and the final
three refer to the branch code. The essential elements in a cheque are the date, the
amount in words as well as digits, the signature, the cheque number and the MICR
code.
The settlement of funds in clearing occurs at several levels. The aggregate amount or
value of cheques presented by a bank on other banks represents the claim by that bank
on other banks. Similar claims are made by all the banks on every other bank in the
clearing. A net settlement is arrived at the clearinghouse and the debit or credit position
of the bank is determined. These are booked in their current accounts maintained by the
settling bank. This represents the inter-bank settlement. The settlement of funds
between the service branch and the branch concerned represents the transfer of funds
to the branch level. The payment process is completed only when the funds are debited
from the drawer's account and credited to the payee's account.
Inter-branch clearing need not go to the clearinghouse. Cheques presented by
customers drawn on different branches of the same bank need not be sent to the
clearinghouse, as the transfer of funds is internal to the bank. The service branch
usually acts as a settlement branch for the branches and the instruments are sent to the
drawee branches while the inter-branch accounts are credited or debited internally.
During the third week I was at the demand Draft section where works related to issuing
of cheque book, pass book, locker facility was also done. This section needs lots of
manual work and is one of the important sections of the bank. During the final two days
of the week, I was at the cash counter helping the officer with work and simultaneously
learning the different process for different transactions. Since the banking transactions
are all systemized and password and finger-print protected, I was unable to work
individually at the cash counter.

Demand draft
In this section, I learnt about the uses and the security of the Demand Draft. The
Demand Draft is a written order for making payments. The bank providing the service is
called drawer bank. The essentials of a DD includes Name of the recipient, Name of the
sender, Amount to be transferred, Place where the transferred money is to be paid,
Mode in which money is to be paid i.e. in cash or through a Bank Account. The demand
draft is generally crossed for security purpose. This process is checked by an officer
and only then is the Demand Draft signed upon.

Issuance of Cheque Book

The issuance of cheque book and pass book does not take much time but needs to be
carefully dealt with. The code of the cheque book is to be carefully noted in case of
future reference. The details are fed into the system as well as it is manually recorded.
There are cases where there is a change in address of a customer, or a single account
holder wants to add another person as a joint account. The formalities regarding these
changes are dealt with in this section. Since Indian Bank, Madipakkam Branch is a
premier banking institution in that locality; the branch attracts huge footfalls and
numerous transactions.

Locker facility
The bank also offers locker facility. This facility is also dealt with in this section. The
customer’s account number is recorded manually and the locker is opened with two
keys-one that the customer holds and another, the master key with the bank.
Cash counter
This is the place where all the cash transactions of the bank take place. The staffs
require special password and authority to do cash transactions. Cash transactions over
Rs.20000/- needs special permission of the manager and is done only at the main
counter. The other seven counters deal with transactions not beyond Rs.20000/-.
During the final week of my internship training, I was at the Loans Section and it was the
most interesting department in the bank. The bank provides various kinds of loans
tailor-made for various needs of the customer. The various loans the bank offers include
Home Loans, NRI Home Loans, Vehicle Loan, Jewel Loans, Educational loans, Plot
Loans, Pension Loans, Loans against deposits, Loans to Small-Scale Industries,
Holiday loans, Doctor Plus loans for the doctors. Among these loans, the Home loans,
Educational loans and Jewel loans are most popular and highly sought after.
Home loans are given for purchasing, or to construct a house / flat / renovate / repair or
alter an existing house / flat. The maximum permissible age at the time of applying is 50
years & at the end of repayment period is 60 years. The Quantum of Loan is 36 times of
Gross Monthly Income or 60 times of Net Monthly Income whichever is higher.
Spouse’s Income can be included for calculating eligible amount if he / she has steady
income. The security of the loan is Equitable Mortgage of Property purchased /
constructed out of loan proceeds registered at Applicant’s cost.
The following documents need to be submitted for processing the loan.
1. Completed Application Form with passport size photograph.
2.Proof of Identity such as PAN Card / Voter’s ID/Passport/Driving License.
3. Proof of residence such as Recent Telephone Bill / Electricity Bill / Property Tax
Receipt / Passport / Voter’s ID
4. Proof of business address in respect of businessmen / industrialists.
5. Proof of Employment.
6. Salary Certificate.
7. Proof of other income like rent, interest on investment, if any.
8. Balance Sheet for the past three financial years in the case of Professionals,
Businessmen & Self employed.
9. Income Tax / Wealth Tax (if applicable) Returns for the past 3 years
10. Agreement of Sale / Sale Deed.
11. Approved Building Plan.
12. Title Deed Documents for 30 years.
13. Proof of title in the Revenue Records.(Legal Opinion from Advocate & Valuation of
property from Engineer will be arranged by Bank at applicant’s cost)
Jewel loans are given to customers for providing short-term credit facility to them. The
Quantum of loan should be determined based on the net weight of the jewel/ornament
and rate per gram fixed from time to time or 70 % of market value of the jewels to be
pledged whichever is lower. The bank has its own appraiser for valuation of the jewel
produced. The jewel is the only security that the bank asks as security.
Educational loan is provided to meet the cost of education covering fee payable to
college/school/hostel, exam fees, purchase of books/equipments, travel
expenses/passage money for studies abroad, purchase of computers essential for
completion of the course etc. of the customer. For availing the loan, the applicant should
be an Indian National. He/ She should have secured admission to professional/technical
courses in India/Abroad through Entrance Test/Merit based selection process. The
quantum of loan for Studies in India is Rs.10.00 lakhs and for Studies Abroad is
Rs.20.00 lakhs. Higher Quantum of loan subject to a maximum of Rs.15 lakhs for
studies in India and Rs.25 lakhs for studies abroad would also be considered in
deserving and meritorious cases at the discretion of the manager. The security to be
submitted for educational loan is Co obligation of parents and no security for loan up to
Rs. 4 lakhs. For loans above Rs.4 lakhs and up to Rs.7.50 lakhs, Co obligation of
parents together with collateral in the form of a satisfactory third party guarantee is
required. Loans above Rs.7.50 lakhs requires Co obligation of parents together with
tangible collateral security of suitable value along with the assignment of future income
of the student for payment of installments. The Student's Age should be 15 to 30 years
for studying in India and 18 to 35 years for studying abroad.
The creditability of the borrower is carefully scrutinized and the documents are verified
carefully before the loan can be given. The officer scrutinizes the documents and sends
the files to the head office for sanctioning of the loan. Then the branch disburses the
loan amount in installments. The bank’s job, I learnt, does not end with giving loan but
also to check whether the loan money is used properly for the said purpose.
There are special calculations that need to be worked out, in order to find the capacity
of the borrower to repay the loan in case of loans to Small-Scale Industries. The bank
offers loans to SSIs (Small Scale Industries) and SMEs (Small and Middle-sized
Enterprises) based on their credibility and their power to repay the loan.
I was also at the System Manager’s desk, where all the recording of transactions and
other records are maintained. The branch records the transactions in the system as well
as saves hard copies at the branch for future reference. The bank at present contains
records of transactions that happened during the past three years. The bank’s ATM
facilities are also taken care at this section. The customer needs to given the ATM card
and the PIN number. These are done in this section. Any problem with the ATM
machine the branch holds is also dealt with in this section. The branch makes sure that
the ATM card and the PIN number are not with the same officers. The customer’s
application for Internet Banking and Mobile Banking are also processed in this section.