BANKING AND INSURANCE-II

A REPORT ON A FIELD VISIT TO BANK OF INDIA, VALLABH VIDYANAGAR

Submitted by: Raj A. Pandey(50), Raj Rathod(51) and Samuel Movale(59)
PREFACE
A field visit to a bank/ insurance firm is an essential part of a banking and
insurance course in the BBA programme. This visit and the report along with it
has helped us to understand the practical and corporate world of banks more
clearly, along with making everything we learn in class as theory more clear.
The theoretical knowledge along with this hands on experience will help us
apply the knowledge better in real life.
The interactive session with banking staff was a nice insight into some of the
banks more technical details which would otherwise go unknown to us.
It helped us all to learn banking concepts more clearly.
Profile of Bank of India:
• Bank of India was founded on 7th September, 1906 by a group of eminent
businessmen from Mumbai. The Bank was under private ownership and
control till July 1969 when it was nationalised along with 13 other banks.
• Beginning with one office in Mumbai, with a paid-up capital of Rs.50 lakh
and 50 employees, the Bank has made a rapid growth over the years and
blossomed into a mighty institution with a strong national presence and
sizable international operations. In business volume, the Bank occupies a
premier position among the nationalized banks.
• The Bank has over 5100+ branches in India spread over all states/ union
territories including specialized branches. These branches are controlled
through 69 Zonal Offices and 13 NBG Offices. There are 45 branches/
offices abroad which includes 23 own branches, 1 representative office
and 4 Subsidiaries (20 branches) and 1 joint venture.
Stock price of Bank of India Ltd. As of 14th April,
2024
SWOT analysis of Bank of India.
Global Business Performance

Source: BOI Public

report Q2-Q3 2023
Gross Deposits and Advances

Source: BOI Public

report Q2-Q3 2023
Non-performing Assets

NPA expands to non-performing assets (NPA). Reserve

Bank of India defines Non Performing Assets in India as
any advance or loan that is overdue for more than 90
days. “An asset becomes non-performing when it ceases
to generate income for the bank,” said RBI in a circular
form 2007. To be more attuned to international practises,
RBI implemented the 90 days overdue norm for
identifying NPAs has been made applicable from the year
ended March 31, 2004. Depending on how long the assets
have been an NPA, there are different types of non-
performing assets as well.
The types are on the following slides
Non-performing Assets

1. Sub-Standard Assets: An asset is classified as a sub-

standard asset if it remains as an NPA for a period less
than or equal to 12 months.
2. Doubtful Assets: An asset is classified as a doubtful
asset if it remains as an NPA for more than 12 months.
3. Loss Assets: An asset is considered a loss asset when
it is “uncollectible” or has such little value that its
continuance as a bankable asset is not suggested.
However, some recovery value may be left in it as the
asset has not been written off wholly or in parts.
Non-performing Assets

NPAs are generally bad news for banks as they

usually go unrecovered even after using
traditional methods of recovery such as
appealing to Lok adalaats and sending out Loan
recovery agents. It is to mitigate the loss
incurred through NPAs do banks do such
thorough background checks before giving out
loans in order to prevent them from becoming
NPAs in the first place.
NPA Status

Source: BOI Public

report Q2-Q3 2023
Operating and Net Profit

Source: BOI Public

report Q2-Q3 2023
Distribution of Digital banking services

Source: BOI Public

report Q2-Q3 2023
Bancassurance

Bancassurance is an arrangement between a bank and an

insurance company allowing the insurance company to
sell its products to the bank's client base. This partnership
arrangement can be profitable for both companies. Banks
earn additional revenue by selling insurance products,
and insurance companies expand their customer bases
without increasing their sales force.
1. The insurance company benefits from increased sales
and a broader client base without having to expand its
sales force.
2. The bank benefits by receiving additional revenue
from the sale of insurance products.
Bancassurance

Bank of India offers a bancassurance service too,

partnering up with Star-Union Dai-Ichi Life insurance,
Life Insurance Corporation and Future Generali
insurance co.
They offer all sorts of life insurance for people belonging
to all walks of life. Super premium services and Basic
health insurance are covered under one roof, as well as
the regular top of the line banking services they offer. It
makes life much easier for the regular customer as they
don’t have to worry about going to some other place to
get insured. The bancassurance sector of Bank of India
also has on-hand insurance experts to guide them best
towards whichever form of insurance would suit them the
best.
Users availing bancassurance services offered

Percentage of customers

Future Generali Star-Union LIC None

Source: Primary
research data.
Banking Facilities offered by Bank Of
India
RTGS

• The term "real-time gross settlement (RTGS)" refers to a funds

transfer system that allows for the instantaneous transfer of
money and/or securities. RTGS is the continuous process of
settling payments on an individual order basis without netting
debits with credits across the books of a central bank. Once
completed, real-time gross settlement payments are final and
irrevocable. In most countries, the systems are managed and run
by their central banks.
• In India, The minimum transfer limit on one RTGS transfer is 2 lakh
rupees, and there is no upper limit. To transfer funds via RTGS, log in to
your banking portal and add the recipient as a beneficiary by entering
details like their name, account number, account type, and IFSC code.
Then choose RTGS as the mode of transfer and enter the amount to be
transferred, and the fund transfer will be completed. Every RTGS transfer
can cost up to 50 rupees to complete, as transfer charge.
Banking Facilities offered by Bank Of
India
NEFT

• NEFT, or National Electronic Funds Transfer, is a fund transfer

mechanism started by the RBI in 2005. It settles transactions in
half-hourly batches. Organisations, companies and individuals
can use it to transfer funds from one bank account to another. It
is available 24/7 throughout the year. NEFT enjoys pan-India
coverage.

• You can do an NEFT transaction from the comfort of your home.

There is no compulsion to visit your nearest bank branch for an
NEFT process.

• It is the most popularly used internet banking transfer method

since there is no minimum amount to be transferred, unlike
RTGS. It is more frequently used by people sitting in the comfort
of their own homes.
Other Monetary remittance services

Other money remittance facilities offered by Bank of India include:

• International transfers, done via SWIFT codes,
• Currency Exchange services
• Demand Drafts, Bankers Cheques
• IMPS: IMPS stands for Immediate Payment Services. This is a revolutionary
electronic fund transfer service which is available throughout the year, even on
bank holidays. It transfers funds online in an instant and allows for the use of
applications and services like UPI and BHIM to run off its architecture.
• Foreign currency Demand drafts
Locker Facilities

When a depositor rents a safe deposit

locker with his or her respective bank, the
bank will provide the key to the depositor
to access the locker. Apart from this, the
banker has a second guard key to the
locker box. With the rising technological
adoption in recent times, a keyless
systems like access cards and biometric
have been introduced in the banking
system.
Bank of India has a state of the art Locker
Facility, offering up various shapes and
sizes of lockers for storage of different
things their customers might want to keep
in there.
PHOTOS: