A REPORT ON THE ORGANISATION STUDY DONE AT

LAKSHMI VILAS BANK

KARUR WEST

Report submitted in partial fulfillment of the

requirements for the award of Degree of

MASTER OF BUSINESS ADMINISTRATION

By T.SUMITHA

Register No: 13PBA053

Under the Guidance of

Mr.K.Ananth., BE., MBA.,

Head, Department of Management Studies.

Department of Management Studies (PG)

K.S.Rangasamy College of Arts and Science (Autonomous) Tiruchengode - 637 215

July 2014

2

CERTIFICATE

This is to certify that “A report on Internship at LAKSHMI VILAS BANK KARUR

WEST is a record of the work done by Miss.T.SUMITHA (13PBA053), submitted in

partial fulfillment of the requirement for the award of degree of Master of Business

Administration during the academic year 2013-14.

Faculty Guide Head of the

Department

Viva voce examination held on -------------------

Internal Examiner

3

DECLARATION

I hereby declare that the internship report on LAKSHMI VILAS BANK , KARUR

WEST is my original work and that no part of this report has been submitted for the

award of any other degree, diploma, fellowship or any other similar titles and that the

work has not been published in any journal or magazine.

(T.SUMITHA)

Place:

Date:

4

ACKNOWLEDGEMENT

It is my privilege and great pleasure to express my sincere and heartfelt

thanks to Lion Dr.K.S.RANGASAMY, MJF, Founder and Chairman of K.S.R.

group of institutions.

I extend my thanks to Smt.KAVITHAA SRINIVAASHAN., M.A., MBA.,

Executive Director, K.S.Rangasamy College of Arts and Science (Autonomous).,

for providing me an opportunity to undertake the internship.

I am indebted to Dr.N.KANNAN, M.Sc., Ph.D., Principal, K.S.Rangasamy

College of Arts and Science (Autonomous), for his constant encouragement and

valuable guidance throughout the study.

I extend my sincere and heartfelt thanks to Mr.K.Ananth, BE., MBA., Head,

Department of Management Studies (PG), for his encouragement and valuable support

throughout the internship

I feel immense happy to express my deep sense of gratitude to my esteemed

guide, Mr.K.Ananth., BE., MBA., Head, Department of Management Studies (PG),

for her valuable time bound discussion and for the internship report.

5

CONTENT

Chapter

No.

Particulars Page no.

EXECUTIVE SUMMARY 7

Chapter-1 1 INDUSTRY

1.1 INDUSTRY PROFILE 8-13

Chapter-2 ORGANISATION

2.1 ORGANISATION PROFILE 15

2.2 HISTORY OF THE ORGANISATION 16

2.3 ABOUT THE ORGANISATION 17

2.4 COMPETITORS 18

2.5 VISION & MISSION 19

Chapter-3 2 PRODUCT AND SERVICE

PROFILE(LAKSHMI VILAS BANK)

3.1 FIXED DEPOSIT 20

3.2 SAVINGS BANK 21-22

3.3 LAKSHMI SAVINGS GOLD 23

3.4 LAKSHMI LAKHPATHY RECURRING

DEPOSIT

24-25

3.6 LAKSHMI SAVINGS YOUTH POWER 25-26

6

3.7 WEALTH MANAGEMENT SERVICE 27-33

3.8 ONLINE SERVICES 34-36

Chapter-4 3 BRANCH(LVB KARUR WEST)

4.1 ABOUT THE BRANCH 39

4.2 HIGHLIGHTS OF THE BRANCH 40

4.3 SWOT ANALYSIS OF BANK 41

Chapter-5 ORGANIZATIONAL CHART 42

Chapter-6 LEARNING\INTERNSHIP\ EXPERIENCE 43

Chapter-7 KNOWLEDGE GAINED 44

Chapter-8 SKILLS DEVELOPED 45

Chapter-9 CONCLUSION 46

Chapter-

10

REFERENCES 47

7

EXECUTIVE SUMMARY

As a first year MBA student in K.S. Rangasamy college of Arts & Science. I had to

undertake a one month internship as a part of my curriculum. I undertook my

internship at LAKSHMI VILAS BANK.

The internship is mainly concerned with the departmental study and the

overall working of the organization as a whole. The study mainly gives an idea about

the various functional departments in the company. The study covers all the major

departments of the company and helps in getting a clear view about the department. It

helps us to understand the department and shows an overall view of the functioning of

the company through its various departments.

8

1.1 INDUSTRY PROFILE

Banking in India in the modern sense originated in the last decades of the 18th

century. The first banks were Bank of Hindustan (1770-1829) and The General Bank

of India, established in 1786 and since defunct.

The largest bank, and the oldest still in existence, 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. 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. For many years the presidency banks acted as

quasi-central banks, as did their successors, until the Reserve Bank of India was

established in 1935.

In 1969 the Indian government nationalised all the major banks that it did not

already own and these have remained under government ownership. They are run

under a structure know as 'profit-making public sector undertaking' (PSU) and are

allowed to compete and operate as commercial banks. The Indian banking sector is

made up of four types of banks, as well as the PSUs and the state banks, they have

been joined since the 1990s by new private commercial banks and a number of foreign

banks.

Banking in India was generally fairly mature in terms of supply, product range

and reach-even though reach in rural India and to the poor still remains a challenge.

The government has developed initiatives to address this through the State Bank of

India expanding its branch network and through the National Bank for Agriculture and

Rural Development with things like microfinance.

9

Indian Banking Industry currently employees 1,175,149, employees and has a

total of 109,811 branches in India and 171 branches abroad and manages an aggregate

deposit of 67504.54 billion (US$1.1 trillion or €840 billion) and bank credit of

52604.59 billion (US$890 billion or €650 billion). The net profit of the banks

operating in India was 1027.51 billion (US$17 billion or €13 billion) against a

turnover of 9148.59 billion(US$150 billion or €110 billion) for the fiscal year 2012-

13.

FORMS OF BUSINESS IN WHICH BANKING COMPANIES MAY ENGAGE:

In additional to the business of banking, a banking company may engage in any one or

more of the following forms of business, namely:

(a) the borrowing, raising, or taking up of money;

the lending or advancing money either upon or without security;

the drawing, making, accepting; discounting, buying, selling collecting and

dealing in bills of exchange, hoodies, promissory notes, coupons, drafts, bills of

lading, railway receipts, warrants, debentures, certificates, scrips and other

instruments, and securities whether transferable or negotiable or not;

the granting and issuing of letters of credit, traveller’s cheques and circular

notes;

the buying, selling and dealing in bullion and specie;

the buying and selling of foreign exchange including foreign bank notes;

There is a growing need for banking facilities due to

nationwide growth, international trade and industrial

liberalization which have all contributed to changes in the

banking environment.

10

the acquiring, holding, issuing on commission, underwriting and dealing in

stock, funds, shares, debentures, debenture stock, bonds, obligations, securities

and investments of all kinds;

the purchasing and selling of bonds, scrip or other forms of securities on behalf

of constituents or others,

the negotiating of loans and advances;

the receiving of all kinds of bonds, scrip or other forms of securities on deposits

or for safe custody or otherwise;

the providing of safe deposit vaults;

the collecting and transmitting of money and securities;

(b) – acting as agents for Government or local authority or any other person or

persons;

the carrying on of agency business of any description including the clearing and

forwarding of goods, giving of receipts and discharges and otherwise acting as

an attorney on behalf of customers, but excluding the business of a [managing

agent or secretary and treasurer] of a company;

(c) contracting for public and private loans and negotiating and issuing the same;

(d) the effecting, insuring, guaranteeing, underwriting, participating in managing and

carrying out of any issue, public or private, of State, municipal or other loans or of

shares, stock, debentures, or debenture stock of any company, corporation or

association and the lending of money for the purpose of any such issue;

(e) carrying on and transacting every kind of guarantee and indemnity business;

11

(g) acquiring and holding and generally dealing with any property or any right, title or

interest in any such property which may form the security or part of the security for

any loans or advances or which may be connected with any such security;

(h) undertaking and executing trusts;

(i) undertaking the administration of estates as executor- trustee or otherwise;

(j) establishing and supporting or aiding in the establishment and support of

associations, institutions, funds, trusts and conveniences calculated to benefit

employees or ex-employees of the company or the dependents or connections of such

persons; granting pensions and allowances and making payments towards insurance;

subscribing to or guaranteeing moneys for charitable or benevolent objects or for any

exhibition or for any public, general or useful object;

(k) the acquisition, construction, maintenance and alteration of any building or works

necessary or convenient for the purposes of the company;

(l) selling, improving, managing, developing, exchanging, leasing, mortgaging,

disposing of or turning into account or otherwise dealing with all or any part of the

property and rights of the company;

(m) acquiring and undertaking the whole or any part of the business of any person or

company, when such business is of a nature enumerated or described in this sub-

section;

(n) doing all such other things as are incidental or conducive to the promotion or

advancement of the business of the company;

(o) any other form of business which the Central Government may, by notification in

the Official Gazette, specify as a form of business in which it is lawful for a banking

company to engage.

12

CURRENT BANKING TECHNOLOGY DEVELOPMENT:

In recent years there has also been considerable change in the functioning of

bank. There has been an increase in the amount of technology used by banks, e.g,

some banks use cash dispensers and offer twenty four hours cash withdrawal facility,

instant account details and money transfer through computer network. There is much

more competition in the banking sector. Services have to be sold in ways never done

previously.

From the regular banking operation, termed as ‘house keeping', balancing of

books and reconciliations of inter branch and intra branch entries of simple money

transactions, commercial banks are diversifying their priorities.

New financial institutions like merchant banks, leasing companies, mutual

funds and venture capital companies have come into existence. Commercial banks too

have joined the hub of capital market activity. Hence there has been a transformation

in the services offered by banks and this has led to considerable change in the type of

manpower recruited. Employment avenues in quasi financial institutions have shot up.

However, with demand on profit, in the banking industry, particularly in the

international banking sector the total concept of seniority and promotion has been

given a go-by and competence among juniors is recognised. ‘Smartest' people matter

and aggressive banking has taken over. With such professionalism pay scales have

gone up and the number of employees has gone down. Banks have set right their

organisational structure for efficient services.

Computers have taken over and recruitment pattern has been favourable to

more technical manpower. Management graduates, Chartered Accountants, Chartered

Financial Analysts are hence in greater demand in the banking sector. Presently,

emphasis is on specialisation and diversification. The field of capital markets requires

professional expertise.

13

To cater to the needs of a growing industry for marketing its shares and

debentures public sector banks and financial institutions have started their own

Merchant Banking divisions. Many industrial houses too have started their own

Merchant Banking companies, acting as lead managers for public issues of shares and

debentures, e.g., Times Guarantee, Tata Finance, etc.

Large share broking firms have also taken on the functions of finance and

investment companies and acted as managers for the issue of shares and also as

underwriters during public issues.

14

2.1 ORGANISATION PROFILE

NAME : LAKSHMI VILAS BANK PVT LTD.

ADDRESS : The lakshmi vilas bank pvt ltd,

Registered & administrative office,

. Corporate Office LVB House,4/1,Sardar Patel Road,

guindy,Chennai - 600032. Tamil Nadu, INDIA

Salem road,

Kathaparai,

Karur-639 006.

Head quarters : chennai, India.

Founded : 1926

Area served : India

INDUSTRY : Banking, Financial services

WEBSITE : www.lvbank.com

PRODUCT : consumer banking.

KEY PERSON : Mr. Rakesh Sharma (MD & CEO)

NO.OF.BRANCHES : 274

15

2.2 HISTORY OF THE ORGANISATION:

The Lakshmi Vilas Bank Limited (LVB) was founded eight decades ago. ( in

1926) by seven people of Karur under the leadership of Shri V.S.N. Ramalingam

Chettiar, mainly to cater to the financial needs of varied customer segments. The bank

was incorporated on November 03, 1926 under the Indian Companies Act, 1913 and

obtained the certificate to commence business on November 10, 1926, The Bank

obtained its license from RBI in June 1958 and in August 1958 it became a Scheduled

Commercial Bank.

During 1961-1965 LVB took over nine Banks and raised its branch network

considerably. To meet the emerging challenges in the competitive business world, the

bank started expanding its boundaries beyond Tamil Nadu from 1974 by opening

branches in the states of Andhra Pradesh, Karnataka, Kerala, Maharashtra, Madhya

Pradesh, Gujarat, West Bengal, Uttar Pradesh, Delhi and Pondicherry. Mechanization

was introduced in the Head office of the Bank as early as 1977. At present, with a

network of 290branches,1 satellite branch and 10 extension counters, spread over 15

states and the union territory of Pondicherry.

The bank focuses is on customer delight, by maintaining high standards of

customer service and amidst all these new challenges, the bank is progressing

admirably.

16

2.3 ABOUT THE COMPANY

LVB has a strong and wide base in the state of Tamil Nadu, one of the

progressive states in the country, has a vibrant industrial environment. LVB has been

focusing on retail banking, corporate banking and banc assurance, is rendering high-

tech services which include:

100 % CBS Branches.

VISA Enabled International Debit Card.

RTGS & NEFT enabled electronic funds transfer services.

Internet Banking, Mobile Banking & SMS Alerts.

Electronic Clearing Services (ECS).

National Electronic Clearing Services (NECS).

Payment through mobile phone.

Coupled with all our existing recently launched innovative and attractive

deposit schemes, and other loan schemes which suits large number of employees,

comparable only with best in the industry to-day.

Total business volume grew with the deposits level at around Rs.18573

Crores and the credit portfolio expanding to Rs.13038 Crores with a total

Business mix of Rs.31611 Crores and registered growth at 15% on Y-o-Y March

2014.

The bank has a suite of products that are constantly innovated to suit the

changing needs of the customers.

17

To facilitate all the financial services under one roof, the bank has tied up for a

bank assurance pact with Life Insurance Corporation of India for marketing life

insurance products, Bajaj Allianz General Insurance Co. Ltd for General Insurance

distribution business and arrangements for distributing the mutual fund products of 16

various reputed AMCs.

The Bank believes in cost effective service delivery powered by “appropriate”

technology to enhance value to customers. All our bank branches are in the state-of-

the-art core banking software viz. Flexcube.

The Bank has an ATM network of 636, in vital or Major locations. Consequent

to the tie-up with Cash Tree Network and NFS for ATMs, over 81000 & above ATMs.

In terms of service standards and operational efficiency, the bank has bench

marked its practices with the best in the industry. The bank has taken great strides in

reaching out to the various segments of the society through its innovative products

delivered through multiple channels woven around branches in different geographies.

2.4 COMPETITORS:

HDFC Bank

ICICI Bank

Kotak Mahindra

Axis Bank

IndusInd Bank

Yes Bank

Federak Bank

ING Vysya Bank

Karur Vysya Bank

JK Bank

18

2.5VISION & MISSION:

VISION:

"To be a sound and dynamic banking entity providing financial services of

excellence with Pan India presence."

MISSION:

“To develop a range of quality financial services and products to create value

for customers, shareholders and the society; to motivate people to achieve excellence

in performance leading to sustained profitable growth and build a vibrant

organization.”

Focus areas:

Productivity.

Profitable revenue growth.

Balance sheet & cash flow strength.

Goals :

Customer satisfaction.

Employee motivation.

Increase in market share.

Increase in return on assets.

19

3.1 PRODUCTS:

3.1.1 Fixed Deposits:

Suitable for planned expenditure or savings

Salient Features

Deposit period ranges from 15 days to 10 years with assured regular Monthly/

Quarterly income.

Minimum Deposit amount is Rs. 100/- with no ceiling for the maximum

amount.

Deposit account can be opened individually/ jointly and also in the name of

minors.

Quarterly payment of interest or at discounted value at monthly rests.

Loan facility and Nomination facility available.

3.1.2 Savings Bank:

LVB Savings Bank is intended to promote the healthy habit of saving and for the

steady growth of one's money in the bank.

LVB recognizes that Savings Bank customers are the pulse of all banking activity and

that a satisfied customer at the SB counter is the best advertisement to the bank.

Savings Bank is the landing ground for all deposits and its customers are the opinion

leaders. Hence LVB attaches a lot of importance to the efficient functioning of the

savings department.

20

Salient features

Minimum Deposit amount of Rs.100 with cheque book facility at Rural

branches

Minimum Deposit amount of Rs.500/- with cheque book facility at Metro,

Urban and Semi-Urban branches

Pass Book facility available

Standing instructions facility is available on a nominal charge.

No restrictions on the number or amount of deposits.

Nomination facility is available.

Eligibility:

Individuals in their own names.

Two or more persons, payable to any of them/survivor/survivors.

Two or more persons, payable to all of them jointly.

A guardian on behalf of a minor.

A minor himself/herself if he/she has attained the age of 12 years.

Clubs, associations (Registered or unregistered). Charitable and religious

institutions trusts, local bodies etc., and other bodies of an identical nature.

Illiterate persons.

SB Accounts can also be opened in the name of the following organizations/

Agencies

Primary Co-operative Credit Society which is being financed by the Bank.

Small Farmers' Development Agency (SFDA)

Marginal Farmers' an Agricultural Laborers Agencies ( MFAL)

Drought Prone Areas Program (DPAP)

District Rural Development Agency/Society (DRDA/DRDS)

21

District Development Authority (DDA)

Integrated Rural Development Program ( IRDP)

Integrated Tribal Development Agency (ITDA)

Agriculture Produce Market Committees

Khadi and Village Industries Board

Societies Registered under the Societies Registration act, 1860 or any other

corresponding law in force in State or a Union territory

Companies governed by the Companies Act, 1956which have been licensed

by the Central Government under section 25 of the said Act, or under the

corresponding provision in the Indian companies Act, 1913 and permitted,

not to add to their names the word "Limited" .

1.Savings Bank A/c

A. Domestic

Rate of

Interest

Minimum Balance to be

maintained

a. With cheque book facility 4% 4% 500 500 500

500

b. Without cheque book facility 4% 4% 500 500 500

500

c. No frills account 4% 4% 10 10 10

10

B.Non resident

a.NRO 4% 4% 100 500 500 500

b.NRE 4% 4% 100 500 500 500

Documentation:

All savings accounts need to be properly introduced by someone known to the bank

preferably other SB/CA account holders with the branch.

Latest photograph of the applicant would be necessary to open an account.

Proof of residence and identity should be furnished through any of the

22

documents such as Passport, Driving License, Identity Card issued by income

tax authorities, voter’s identity card.

The account opening process starts on submission of the duly filled in

application form along with the initial deposit amount in cash, suitable

introduction from a person known to the bank.

Interest Rate:

Savings Bank account at LVB earns interest at 4% per annum at present. This

may change from time to time as per RBI directives. Such interest is paid to the

customer twice per year

No T.D.S. is deducted in SB Accounts.

3.1.3 Lakshmi Savings gold:

Lakshmi Savings Gold account offers special privileges to our customers who

maintain an Average Monthly Minimum Balance of Rs. 10,000 and above.

Salient features:

No limit for cash withdrawals at the base Branch (branch where account is

opened)

Rs. 50,000 withdrawal per day at other branches (Self withdrawal only)

No collection charges for Outstation cheques drawn on LVB Center

Charges as per existing rules for collection of Outstation cheques drawn on non

LVB centre.

For Inward Clearing, charges at Rs. 100 per cheque in case of cheque returned

due to Insufficient Funds

For Outward Clearing, charges at Rs. 25 per instrument for Outward Clearing

cheques returned

No charges for Demand Draft/ Pay Order up to any amount

Charges for Collection of Outstation Cheques returned given at base and non-

23

base branches as per existing rules

Free Cash Remittance at base branch

In case of Cash Remittance at non-base branches, free up to Rs. 25,000 and Re

1 per Rs 1000 there after

A charge of Rs. 50 per month is applicable in case of non-maintenance of

minimum balance

No charges for remittance through RTGS/ NEFT

Instant credit up to Rs. 20,000 per occasion only at base branch. Out of pocket

charges if any collected.

ATM Card – Free cash withdrawal at our ATMs as well as Cash Tree,NFS &

BANCS ATMs

Free Net Banking facility

Free multi-city cheques

Free Monthly statement of account via e-mail

Free SMS Alert

Free Personal Accident Insurance Cover (Death Risk) of Rs. 1 Lac (renewable

every year) for the First person alone

Eligibility:

As per our existing Savings Bank Account norms for Individuals

Average Monthly Minimum Balance of Rs. 10,000

3.1.4 Lakshmi Lakhpathy Recurring Deposit

Deposit type: Recurring deposit with additional benefit of General insurance cover of

Rs. 1.20 Lacs on specified items.

Period of Deposit : Recurring deposit for 84 Months

Amount : Rs. 1,000/- per month

Rate of Interest : 9.00% p.a.* (No additional interest for senior citizen & Staff)

24

*Condition apply

Amount payable on maturity: Rs.1,15,901 /- ** is the net amount payable on maturity.

Maturity value is subject to changes depending upon change in the interest rate and

insurance premium rates.

Nomination: Available as per the norms in force.

Loans against deposit : Available as per the existing norms

Tax benefit: Interest is exempted from TDS as per existing guidelines.

Premature Closure: Permitted before maturity as per the existing guidelines. The

premium paid towards insurance will be deducted from the proceeds. The insurance

coverage is valid upto the period for which the premium has been paid.

Insurance Coverage: Total insurance coverage to the tune of Rs. 1,20,000/- [as

detailed below] with M/s Bajaj Allianz General Insurance Co. Ltd is available to all

the active account holders of this scheme. Insurance premium will be paid out of the

accrued interest in the deposit.

Items covered under the insurance package :

Fire (On house hold items) : Rs.50,000/-

Burglary (on house hold items) : Rs. 50,000/-

Baggage (Travel with in India) : Rs. 5,000/-

Accidental Hospitalization (With in India) : Rs. 5,000/-

Hospital Cash (Normal sickness Rs. 1000/- per day - Maximum 10 days) : Rs.

10,000/-

Simple procedure for insurance coverage and claim. Branches will issue the certificate

of insurance along with the LLRD passbook.

This package has been specially devised for the customers of our Bank by our

25

proposed Banc assurance partner M/s Bajaj Allianz General Insurance Co Ltd.

3.1.5 Lakshmi Savings Youth Power

A savings account exclusively for children/youth.

Features Lakshmi Savings Youth Power

Eligibility Age Group Between 12 to 24

Mini. Balance Rs.100/-

Document to be

obtained

SB Opening form with Photo and Age Proof

Documents. All

Age Proof

Any one of the Following documents should be

obtained and attested after due verification of

Originals.

1. Birth Certificate from Competent Authority.

2. School / College Certificate.

3.Passport.

Cash Remittance

charges

i) Base branch Free

ii) Non Base Branch Free - Upto Rs.50,000/- per

day there after Re.1 per 1000.

DD / PO Issue

For remitting of school Fees, Hostel Fees and

School / college fees will be paid without Service

Charges. For Others as per Ser.Charges.

TOD/Overdraft Not Allowed

Funds Transfer Free between LVB Branches.

26

between LVB

Chq Book Facility

1. Age between 12-17 yrs: No Cheque Book

facility. Only Loose Leaf.

2. Age 18 & above: Normal Cheque Book is

permitted

VISA Debit card

Free for first Year with Daily Withdrawal Limit of

Rs.5000/- per day From 2nd year onwards Rs.75/-

charges applicable.

Internet Banking

1. For the age between 12-17 Yrs: No Internet

Banking facility.

2. Age 18 Yrs & above: Net Banking facility

available.

SMS/Mobile Banking Charges Applicable (Will be debited by Data

centre).

Non Maintenance of

Minimum Balance

Charges of Rs.50/- per month for all the account

holders.

27

3.2WEALTH MANAGEMENT SERVICE:

3.2.1 LIFE INSURANCE

The Lakshmi Vilas Bank Ltd. has entered into a tie up with the Giant in the Life

Insurance sector – LIC of India for soliciting Life Insurance policies for our

customers. All the products of LIC will now be available through our branches. It

opens up a reliable and trustworthy investment avenue, making LVB a one stop shop

for all financial requirements.

The core benefit of life insurance is that the financial interests of one’s family remain

protected from circumstances such as loss of income due to critical illness or death of

the policyholder. Simultaneously, insurance products also have a strong inbuilt wealth

creation proposition. The customer therefore benefits on two counts and life insurance

occupies a unique space in the landscape of investment options available to a

customer.

Various types of Life Insurance Products:

Term Life Insurance

Whole Life Insurance

Endowment Policy

Money Back Policy

Annuities and pension

Unit Linked Insurance Plans (ULIPs)

Regular Premium Products .

Single Premium Products.

28

3.2.2 BAJAJ ALLIANZ GENERAL INSURANCE

The Lakshmi Vilas Bank Ltd. has business with M/s. Bajaj Allianz General

Insurance, one of the country's leading private insurance companies is a joint venture

between Bajaj Auto Ltd, India's largest 2 & 3 wheeler giant company and Allianz SE,

the world's largest Insurance Company with 700 subsidiaries across 70 countries.

A general insurance includes all insurance with an exception of a life insurance.

Broadly speaking, general insurance does not include any such part of investment and

can cover the risk of other economic, natural, political and individual risks. There are

general insurance products which are especially for the individuals and include travel,

motor, business, health, home, student and such accident insurance.

As a Corporate Agent, Lakshmi Vilas Bank has already started distributing various

general insurance products to the customers through its own branches.

Health insurance

Stock insurance

Motor Insurance

Personal accident

Group Medical Policy

Plant and Machinery Insurance

Group Accident Policy

Fire Insurance

Society Insurance

Marine Insurance

29

3.2.3 ECGC – EXPORT CREDIT GUARANTEE CORPORATION

The Lakshmi Vilas Bank has tied up with ECGC Ltd, as a Corporate Agent to market

their products, particularly Export credit insurance policy.

ECGC is a Corporation set up by the Government of India for providing export credit

insurance cover to India’s exporters and banks.

ECGC is essentially an export promotion organization, seeking to improve the

competitive capacity of Indian exporters by giving them credit insurance covers,

comparable to those available from their competitors from most other countries.

ECGC is offering various types of export credit insurance cover to the exporter. Some

of the tailor made policies are listed below for reference.

Shipment Comprehensive Risk

PolicySmall Exporters Policy

Exports Turnover Policy

Specific Shipment Policy

Exports (Specific Buyers) Policy

Buyer Exposure Policy

Multi-Buyer Exposure Policy

Consignment Exports Policy etc.

3.2.4 PORTFOLIO MANAGEMENT SERVICES (PMS)

Bank has tied up with UTI Asset Management Company for offering Port Folio

Management Services (PMS) products across the Branch Network.

Portfolio Management Services (PMS) is an investment portfolio in stocks, fixed

30

income, debt, cash, structured products and other individual securities managed by

professional Money / Fund Managers that can potentially be tailored to meet specific

investment objectives of the investors.

Features & Advantages of PMS:

PMS is a well established hassle free option compared to direct equity.

Strong marketing and operational support from the service provider.

Attractive long term additional revenue.

No competition with other offerings of the bank which is debt based.

More choice in terms of portfolios to suit individual client needs and risk

appetite

Ability to structure products that meet specific investment objectives

Increase in wallet share by cross selling to investor who is investing in direct

equity

3.2.5 DEMAT SERVICES

The Lakshmi Vilas Bank is offering Depository services for the benefit of its

customers. Through this facility, our customers can hold their securities in

electronic form with National Securities Depository Ltd (NSDL).Thus the

customers of the bank can now open Demat accounts with us through our

designated branches.

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

securities in electronic form. There are many advantages in opening a Demat

account and keeping the securities in dematerialized form.

Major advantages are

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

securities in physical form.

31

It eliminates damage, loss, theft and misusage of physical certificate

No stamp duty is levied on transfer of securities held in Demat form.

Change of address, registration of Power of Attorney etc can be effected

across companies by one single instruction to DP.

Shares can be traded and transferred even in single number.

3.2.6.MUTUAL FUNDS

Bank is associated with 10 Mutual Fund Asset Management

Companies (AMCs) for promoting Mutual Fund Business over 6 years and Bank

has got Corporate ARN (AMFI Registration Number) - 20626.

A mutual fund is a professionally managed type of collective

investment that pools money from many investors to buy stocks, bonds, short-

term money market instruments, and/or other securities. Since their

creation, mutual funds have been a popular investment vehicle for investors.

Their simplicity along with other attributes provides great benefit to investors

with limited knowledge, time or money.

We are marketing various schemes which includes the New Fund offers,

on-going schemes of various mutual funds, SIP / MIP / STP / DIP etc., of the

below mentioned Mutual Fund associates,

Franklin Templeton Investments

Sundaram Asset Management Co Ltd.

HDFC Asset Management Company Limited

UTI Mutual Fund

Tata Asset Management Ltd

L&T Mutual Fund

Kotak Mahindra Asset Management Co Ltd

Reliance Capital Asset Management Limited

Prudential ICICI Asset Management Co. Ltd

32

SBI Funds Management Pvt Ltd

3.2.7.PAN SERVICE

A new provision relating to tax deduction at source (TDS) under the Income Tax

Act 1961 will become applicable with effect from 1st April 2010. If the PAN is

not furnished to the bank, tax at the prescribed rate or 20%, whichever is higher

will be deducted, while paying or crediting interest on deposits. However, there

is no TDS on interest earned on NRE Deposits in Rupee or Foreign currency and

also on interest earned in domestic SB & RD A/cs. For domestic term deposits,

TDS will be deducted, only if the aggregate interest exceeds Rs.10,000 in a

financial year. As per the revised rules, Form 15 G / 15 H for non deduction of

tax in domestic term deposits will be valid or accepted, only if the customer

furnishes his PAN to the bank. Once the tax is deducted by the bank and paid to

the Govt. of India, (where PAN is not submitted) Bank cannot refund the

amount. Hence we advise you to obtain PAN at the earliest and communicate the

same to your bank branch before tax is actually deducted on interest payments.

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

It is a major identification document.

For investments in primary and secondary markets.

For opening Demat accounts and Trading accounts.

For Mutual Fund investments.

Mandatory for any depositor (including Non-Residents) whose receipts

are subject to deduction of tax at source

3.2.8.NEW PENSION SYSTEM ( NPS )

PFRDA has authorized The Lakshmi Vilas Bank Ltd. to act as Point of Presence

33

(PoP) under New Pension System (NPS) for all Indian citizens except

Government Employees Covered by NPS.

It is voluntary- NPS is open to every Indian citizen. Subscriber can choose

the amount they want to set aside and save every year.

It is simple- all Subscriber have to do is to open an account with any one

of the POPs and get a PRAN.

It is flexible- Subscriber can choose their own investment option and

Pension Fund Manager and see their money grow.

It is portable- Subscriber can operate their account from anywhere in the

country, even if you change their city, job or their pension fund manager.

It is regulated- NPS is regulated by PFRDA, with transparent investment

norms and regular monitoring and performance review of fund managers

by NPS Trust.

3.3.ONLINE BANKING SERVICE

3.3.1.National Electronic Fund Transfer (NEFT):

Lakshmi Vilas Bank is proud to offer the National Electronic Fund Transfer

system (NEFT) facility. NEFT enables an efficient, secure, economical and

reliable system of transfer of funds between accounts of customers of different

Banks.

Eligibility:

Any individual above 18 years - singly or jointly

Features and Benefits:

Electronic payment system in which payment instructions between banks

are processed and settled on deferred net settlement (DNS) basis at fixed

times during the day.

34

There is no minimum or maximum stipulated transaction value for using

this facility.

NEFT facility is available in all the branches of our Bank.

Funds transferred under NEFT will be credited to the beneficiary’s

account on the same day or next day.

Inward remittance is free.

No courier/postal charges payable by customers.

Secured Transfer of funds across the Banks.

Information required for Transfer of funds

Charges:

Inward remittances: No Charge

Outward Payments:

Value Band Customer charges

upto Rs. 10,000 2.5%

from Rs.10,001 to 1 lakh 5%

above Rs.1 lakh to 2 lakhs 15%

above Rs. 2 lakhs 25%

Transaction hours:

The NEFT service is available from 9.00 hours to 19.00 hours on week

days(Monday-Friday) and from 9.00 hours to 13.00 hours on Saturday

NEFT system work on all days except on Sundays and common Holidays across

the states.

The request for NEFT will be accepted up to 15 minutes before the cut off

35

timings at our Branches

3.3.2.Online Shopping

Shopping at your fingertips. Lakshmi Vilas Bank facilitates you to buy variety

of products online from various shopping websites. Shop for anything with just a

click of the mouse. Bid and Buy products across various categories and be rest

assured with safe and secure payment. Payment can be made conveniently using

your Lakshmi Vilas Bank Account. Visit our partner websites, choose your

product and pay using Retail internet Banking Facility

Pay via Mobile

Lakshmi Vilas Bank in association with PayMate offers you the convenience of

paying for mobile recharge, movie tickets, online purchases, retail

shopping and much more at over 15,000 merchants directly from your mobile.

Lakshmi Vilas Bank’s mobile payment service is independent of the handset

model

and service providers and works on even the most basic handsets and across all

telecom operators (GSM or CDMA)

How it works ?

It lets you link your mobile to your Lakshmi Vilas Bank account enabling you

to make secure payments directly from your mobile. You authorize every

payment

with your PIN and the amount gets charged directly to your account.

Simply register and start paying via mobile.

36

Rupay ATM Card

The advent of technology in Banking Industry paved the way for introduction of

safe, secured and hassle-free electronic payment products. The spending pattern

of consumers has boosted the growth of Indian Payment Card market including

credit, debit and prepaid cards. Banks have tied up with internationally

acclaimed networks like VISA Worldwide, Master Card and American express

to improve their retail banking space and bottom line.

Using RUPAY card our customers can access all ATMs under NFS network for

cash withdrawal, balance inquiry, mini statement and PIN change across our

nation.

Advantages of RUPAY card:

Suitable for customers who needs card only for ATM operations.

Using RUPAY card customer can access all ATMs under NFS

network/CashTree network. ( The Rupay card can be used in 98000 + ATMs of

66 members Banks across the country. )

Card renewal charges will be waived for RUPAY cards.

Other Points:

37

1. Rupay card will be issued to new account holder who are not having any cards

of our bank. will not be issued as replacement for our ATM/VISA Debit Cards.

2. Rupay card issuance will not support migration from other cards like VISA

Classic, VISA Gold etc.

3. All dispute management related to Rupay Card is as same as VISA Cards

Remit2India offers exclusive benefits to Lakshmi Vilas Bank's customers

Remit2India is a pioneer in online remittances since the last 12 years.

Trusted by over a million NRIs globally, Remit2India offers multiple ways

to send & receive money in India along with a convenient secure & hassle

free platform.

As a first time user of this service, you will need to

Register by filling in the form to the right

Add your overseas bank account that you want to send money from and

also the address book of receivers in India

Complete a one-time verification process for the safety of your account

Enter the amount and send money online

Inter Bank Mobile Payment Services (IMPS) on ATM

Interbank Mobile Payment Service (IMPS) is an instant interbank electronic fund

transfer service through mobile phones. This service is provided by National

Payment Corporation of India (NPCI) to the NFS members banks. IMPS

facilitate customers to use mobile instruments as a channel for accessing their

banks accounts and remitting funds there from. Using this service, customers of

any banks can do fund transfer or payment instantly using his/her mobile phones

38

on 24x7 basis.

Considering the real time process round the clock and more secured, ATM is

considered as one of relevant channels and useful for customer to do IMPS fund

transfer securely. Our customers can send money to other bank customers

through LVB ATMs using his/her Debit cards.

Advantages:

IMPS on ATM available all time 365x24x7.

Fund transfer using IMPS is instant and secured.

IMPS on ATM will support both inter-bank (beneficiary having account in

other bank) and intra-bank (beneficiary having account in our bank) fund

transfer.

Mobile phone not required for initiating IMPS transaction.

SMS alert will be sent to the remitter for debit of his/her account debit and

credit of his/her beneficiary’s account.

39

4.1ABOUT THE BRANCH ( LVB KARUR WEST)

Sections of branch:

Clearing

Jewel loan

Credit

Foreign exchange

Teller

Statement

Cash

Deposit

Credit

department

Foreign

exchange

department

Operation

department

Departments of LVB west branch

Deposit

Cash

Teller

clearing

40

4.2. HIGHLIGHT OF BRANCH PERFORMANCE 2012-2013

Deposits increased to Rs 62.91 Cr as on 31.03.2014 from 50.12 Cr as on

31.03.2012 registering a growth of 23%

Advance increased to Rs 114.34 Cr as on 31.03.2014 from Rs98.58 Cr as on

31.03.2013 registering a growth of 16%

Percentage of CASA as on 31.03.2014 was 38.38%.

Operating Profit as On 31/03/2014 was Rs 8.29 Cr for the FY 2013-14.

Forex turn over as on 31/03/2014 was 200 Cr for the FY 2013-14.

The Branch achieved the status of Bima Bank branch by collecting Life

Insurance Premium of Rs 22.46 Lakhs comprising of 76 policies for the FY

2013-14.

NPA Recovery of 35 Lacs is closed upto 31.03.2014.

Stood at 3.94 %

Total Deposits increased by 12.79 Cr

CASA increased by 6.16 Cr.

Advances increased by 15.76 Cr.

4.3. Corporate Business Target FY 2015

SAVING DEPOSITS 2800 Crs

DEMAND DEPOSITS 1376 Crs

CASA 4176 Crs

41

TERM DEPOSITS 17974 Crs

BANK DEPOSITS 1050 Crs

TOTAL DEPOSITS 23200 Crs

ADVANCE(NET) 16800 Crs

BUSINESS 40000 Crs

OPERATING PROFIT 444.45 Crs

GROSS NPA Below 3%

4.4.SWOT ANALYSIS FOR THE BANK(LVB)

Strength

1. Focus on Strong robust financial products 2. Social inclusiveness through schemes for all sectors

3. Diversified approach towards wealth management 4. Gives employment to over 1600 people

Weakness

1. Moderate presence across India as it is predominantly present

in South India

2. Minimal marketing causes less visibility

Opportunity

1. Upcoming SME banking

2. International banking 3. Focusing on retail banking, corporate banking and bank

assurance

Threats

1. Economic slowdown

2. Highly competitive environment 3. Stringent Banking Regulations

42

5.ORGANIZATIONAL CHART

ASSISTANT GENERAL MANAGER

DEPUTY GENERAL MANAGER

GENERAL MANAGER

EXECUTIVE DIRECTOR

CHAIRMAN

CHIEF MANAGER

SENIOR MANAGER

MANAGER

ASSISTANT MANAGER

CLERK

SUB STAFF

43

6.LEARNING\INTERNSHIP EXPERIENCE

I learnt new type of working skills in different departments

At the first day the organization placed me at “May I help you“ service desk

for attending customer

From that I learnt how to guide the customer in the organization

With the help of my guide I learnt what is clearing section and what are

process are in it

I learnt what are process of credit department and foreign exchange are with it

With my internship experience gives me the confident to work in the banking

sector

44

7. KNOWLEDGE GAINED:

The bank process is fully computer based systems, so I learnt how to check the

balance for the account and the transactions

How to fill the application forms for saving and current account

How to create the new account number for the new customers

How to create ID for the customers

With the help of ID we can take enormous information about the account

holder of specific ID holder

Inward clearing and outward clearing of cheques

cash deposit process for the account

NEFT and RTGS payment process in the system

In the foreign exchange I learnt PCL and LC(letter of credit)

PCL means Provisions for Credit Loss, is an estimation of potential losses that

a company might experience due to credit risk

In the credit department I learnt in which criteria they are lending loans to the

customers

DEMAT account meaning and features of it

What are different types of Insurance policy and etc..,

45

8.SKILLS DEVELOPED

Checking the “STOCK HYPOTHECATED FOR LAKSHMI VILAS BANK”

if any persons failed to submit the stock statement i need to call to them and

remind them to submit it, where i learnt patience

While filling up the application form i need to verify the documents correctly

and be carefully

Working in May I help you service desk many customers want to avail the

information of their transactions and queries, i need to guide and answer them

properly where my approaching and responding skills developed

RTGS & NEFT payment we need to be knee in typing the account number and

amount correctly

Self confidence is developed by working in an organization.

46

9. CONCLUSION

My experience with Lakshmi Vilas Bank Private limited is outstanding. While

working in Lakshmi Vilas Bank Private limited. I found that this bank has developed

due to facilities and services provided to their customer and his growth rate can be

keep it up if they start to go in semi-urban areas. In last couple of years they have

opened new many branches and they should open many more. The working staffs are

very co-operative in nature and due to that the bank will also get good benefit. Bank

has provided their customer net-banking facilities and due to that transaction are done

fast. Charges at Lakshmi Vilas Bank private limited are on the lower side when

compared with other nationalised and scheduled Bank.

47

10. REFERENCES

www.lvbank.com

www.wikipedia.com