About Oriental Bank of Commerce (OBC) Bank

Set up in 1943 at Lahore, the then part of India, Oriental Bank of Commerce (OBC) is a
public sector Indian bank. Post-partition, the bank shifted to India and was nationalized in
the year 1980. Since its inception, Oriental Bank has seen many ups and downs, but it has
emerged unscathed out of all this turmoil. The bank enjoys a good reputation among its
customers as a result of the prompt and customer friendly services offered to its clients.
The National Institute of Bank Management has rated Oriental Bank of Commerce as
Customer Friendly Bank.

Oriental Bank of Commerce Projects

Oriental Bank of Commerce undertakes projects that involve people's participation at the
grassroots level to tackle social issues. Currently the bank is involved in implementing
Grameen Project in the states of Uttar Pradesh and Rajasthan. The project is modeled on
the pattern of Bangladesh Grameen Bank's scheme for disbursing small loan amounts
ranging from ` 75 onwards. Mostly women benefit from this scheme and this project is
aimed towards poverty alleviation and identifying of reasons behind its success or failure.

Besides the Grameen Project, Oriental Bank of Commerce is involved with several other
schemes, which are aimed at improving the living conditions of the people in the selected
areas. The Comprehensive Village Development Program is a scheme focused on
providing a complete and integrated package that gives rural finance to the villagers with
village development being the focus. This contributes towards the infrastructural
development and an increase in the income of the farmers in the village. Oriental Bank
also works towards training the rural people in using the locally available raw materials
to make products like jam; pickles etc and thus, enhance the cottage industry in these
areas.

Oriental Bank of Commerce Services

Oriental Bank of Commerce offers various services to its clients. Some of the services
offered include Loans, Deposit, NRI Services, Internet Banking, Tele-banking Service,
International Proton Debit Card, SMS Banking, Savings Account, Current Account, Flexi
Fixed Deposit, Cash Management Services, DeMAT Services, CASA Deposit scheme,
Variable Progressive Deposit, PRAGATI Deposit scheme, and Tax Saving Schemes,
Suvidha Deposit, Term Deposit etc.

The bank offers Real Time Gross System (RTGS) service to clients. Under this banks and
financial institutions having account with RBI can transfer funds to one another on an
instant, final and irreversible basis during business hours. This facility can be used on
behalf of the customers for the transfer of funds to other banks.

National Electronic Fund Transfer (NEFT) is another facility available to the customers.
The Reserve Bank of India started this system for banks and financial institutions through
which fund transfer operation would take place. As of now all the 1402 Service outlets of
the Oriental Bank of commerce can offer this facility to their customers.

Oriental Bank of Commerce loans

Oriental Bank of Commerce is a leading Indian nationalized bank with a strong financial
base. Oriental Bank of Commerce loans comes in a wide variety of categories. The
options are virtually endless. There is one for everybody. The bank also has customized
loans for rural India.

Some Oriental Bank of Commerce loans are stated below.

 Housing loan
 Loans for defense personnels
 Car loan or vehicle Loan scheme
 Clean loan for traders
 Education Loan scheme
 Loans for professionals
 Personal loan scheme
 Loans for doctors
Home Loans
Oriental Bank of Commerce Home Loans are extended for the purpose of purchase or
construction of flats or residential houses. The security pledged here is the mortgage of
the property in question. It may be noted that salaried individuals, HUF, self-employed
professionals, farmers, businessman and the like are eligible for this type of loan. There
exist a host of terms and conditions related to this loan.

Car Loans
Oriental Bank of Commerce Car and Vehicle Loans are available for the procurement of
new vehicles like scooters, jeeps, motorcycles and cars. The vehicles must be private
vehicles meant for non-commercial usage. For procuring this type of loan the gross salary
of the applicant need to be ` 10,000/- p.m for a car. The comparable figure for a two
-wheeler is ` 6,000/- p.m. The loan has a host of terms and conditions attached to it.
Oriental Bank of Commerce loans are also available for financing autos and taxis.

Personal loans
Oriental Bank of Commerce personal loans are extended for meeting personal expenses
of applicants, expenditure for family functions, expenses related to marriages,
educational expenses and the like. This loan can also be utilized for medical treatment
(for self and or dependents involving hospitalization). Even travel expenses including
hotel costs can be covered under this. Loans extended under this scheme involve various
terms and conditions.

Education Loans
Oriental Bank of Commerce Education Loans are available for financing higher education.
Finances are available for payment of admission fees, procurement of books,
equipments, stationary, monthly fees, examination fees and the like. There exist a wide
array of terms and conditions attached to this loan. The maximum loan granted for study
in India is ` 10.00 lacs and the comparable figure for studying abroad is ` 20.00 lacs.
Opening an Account with OBC
To open a Account with OBC, you can either download the account opening form
from the bank’s official portal or go to the nearest OBC branch to procure the
application form. After filling up the form duly, submit it to any branch of your
choice. Please remember that you have to furnish the form with all the necessary
documents like passport size photographs, ID proof, etc.

Types of OBC Savings Accounts

Basic Savings Bank Deposit Account
This account caters to those citizens of India who fulfil every eligibility
criteria of opening a bank account, but cannot comply with the financial
burden of maintaining a minimum balance in the account. This account
provides nomination facility to the account holders and they also get an
ATM card for free. The holders of basic SB Account cannot avail the
internet banking facility.

OBC Diamond Saving Deposit Account

OBC Diamond Saving Deposit Account is quite popular among OBC
customers.

OBC Platinum Saving Deposit Account

Account holders enjoy a 50% concession on locker rental charges, and
personalised multi-city cheque books free of cost.

OBC Savings Accounts Minimum Balance Requirements

Depending on factors like type of the savings account, deposit tenure, etc. the
minimum balance to be maintained in each account differs from the other. The
comprehensive table below explains the minimum balance that needs to be
maintained in each type of savings account.

Type of Savings Account Minimum Balance

OBC Diamond Saving Deposit Account Average quarterly Balance - Rs. 1 lakh

OBC Platinum Saving Deposit Account Average quarterly Balance - Rs. 5 lakhs
 Oriental Double Deposit Scheme Rs. 1000

Basic SB Deposit Account No minimum balance required

OBC Savings Accounts Eligibility

Oriental Bank of Commerce allows the following entities to open Savings
Accounts –

 Individuals – either singly or jointly

 Associations, Trusts, Hindu Undivided Families (HUFs),

 Clubs and societies

Documentation
The following documents are required to open a Savings Account with Oriental
Bank of Commerce –

 Government issued photo identity proof – passport, voter ID card, PAN card,
ration card, driving license, etc.
 Proof of age
 Proof of residence – electricity bill, telephone bill, passport, ration card,
etc.
 2 passport size photographs of prospective account holders.
 For 60 or 61 of the prospective account holder.

Rate of interests
 Oriental Bank of Commerce Loan Eligibility Criteria
There are certain factors or criteria stipulated by banks which needs to be satisfied before
loan applications are approved. They are

Age Minimum 21 years

Maximum 65 years

Nationality Indian

Employment Salaried or Self-employed

Type

Employment Employed/In-business for at least 2 yrs. and

status at least 1 yr. with current employer/business

Minimum Rs.4000 - Rs.20000 per month (Varies

Income according to area, which is higher in cities)

Maximum Loan Rs.70 lakhs (Based on your repayment

Amount capability)

Tenure Minimum – 6 months

Maximum – 60 months

Credit Score Preferred 750

Documents Required for Oriental Bank of Commerce Loan

Important documents to be submitted while applying for personal loans
 Completed loan application
 3 Passport size photographs
 Statement of Bank Account/ Pass Book for last six months
 Proof of residence (photo copies of recent Telephone Bills/ Electricity Bill)
 Proof of identify (photo copies of Voters ID card/ Passport/ Driving license/ IT PAN card)
 IT returns for the three years for self-employed professionals
 Form 16/IT returns for the last two financial years for salaried employees

Factors Affecting Oriental Bank of Commerce Loan Application

Apart from the eligibility criteria there are certain factors that affect your loan application mainly the
minimum salary expectation and your loan amount eligibility. They are
1. Location: the place where you stay play an important part in your loan application. This
determines the minimum salary amount for you to be eligible for a personal loan. The minimum salary
is higher in the cities and more so in the case of metropolitan cities like Mumbai.
2. Income: The higher the income the better loan amount you will get. This also shows that your
repayment capability is excellent.
3. Housing situation: Whether you stay in your own house or in a rental property also play a part in
determining your loan amount. This is because staying in a rental property reduces the disposable
income, which means that your repayable capacity is reduced.
4. Company of employment: Working for a reputed company close to a year could indicate to the
lender you are in a stable job, the better the rating of the company the better the personal loan
interest rate can be negotiated.
5. Existing credit: If you already have another loan or credit card debt will play a major factor in
determining your loan amount and interest rate.
6. Credit history: Your credit history based on which your credit score is calculated is very important.
It is a primary factor upon which the loan amount, interest rate and tenure depend upon. If there is
any discrepancy in your credit history, there are chances of your loan being rejected outright.
 BANK TERMINOLOGY
Account Agreement:
The contract governing your open-end credit account, it provides information on changes that
may occur to the account.

Account History:
The payment history of an account over a specific period of time, including the number of times
the account was past due or over limit.

Account Holder:
Any and all persons designated and authorized to transact business on behalf of an account.
Each account holder's signature needs to be on file with the bank. The signature authorizes that
person to conduct business on behalf of the account.

Amortization:
The process of reducing debt through regular installment payments of principal and interest that
will result in the payoff of a loan at its maturity.

Authorization:
The issuance of approval, by a credit card issuer, merchant, or other affiliate, to complete a credit
card transaction.

Automated Teller Machine (ATM):

A machine, activated by a magnetically encoded card or other medium, that can process a
variety of banking transactions. These include accepting deposits and loan payments, providing
withdrawals, and transferring funds between accounts.

Available Balance:
The balance of an account less any hold, uncollected funds, and restrictions against the account.

Balance Transfer:
The process of moving an outstanding balance from one credit card to another. This is usually
done to obtain a lower interest rate on the outstanding balance. Transfers are sometimes
subjected to a Balance Transfer Fee.

Bank Statement:
Periodically the bank provides a statement of a customer's deposit account. It shows all deposits
made, all checks paid, and other debits posted during the period (usually one month), as well as
the current balance.

Bankrupt:
A bankrupt person, firm, or corporation has insufficient assets to cover their debts. The debtor
seeks relief through a court proceeding to work out a payment schedule or erase debts. In some
cases, the debtor must surrender control of all assets to a court-appointed trustee.

Canceled Check :
A check that a bank has paid, charged to the account holder's account, and then endorsed. Once
canceled, a check is no longer negotiable.

Check:
A written order instructing a financial institution to pay immediately on demand a specified
amount of money from the check writer's account to the person named on the check or, if a
specific person is not named, to whoever bears the check to the institution for payment.

Credit Limit:
The maximum amount of credit that is available on a credit card or other line of credit account.

Debit:
A debit may be an account entry representing money you owe a lender or money that has been
taken from your deposit account.

Debit Card:
A debit card allows the account owner to access their funds electronically. Debit cards may be
used to obtain cash from automated teller machines or purchase goods or services using point-
of-sale systems. The use of a debit card involves immediate debiting and crediting of consumers'
accounts.

Deposit Slip:
An itemized memorandum of the cash and other funds that a customer presents to the bank for
credit to his or her account.

Draft:
A signed, written order by which one party (the drawer) instructs another party (the drawee) to
pay a specified sum to a third party (the payee), at sight or at a specific date. Typical bank drafts
are negotiable instruments and are similar in many ways to checks.

Estate Account:
An account held in the name of a decedent that is administered by an executor or administrator
of the estate.

Foreign Transaction Fees:

A fee assessed by your bank for making a transaction at another bank's ATM.

Forgery: The fraudulent signing or alteration of another's name to an instrument such as a deed,
mortgage, or check. The intent of the forgery is to deceive or defraud.

Frozen Account:
An account on which funds may not be withdrawn until a lien is satisfied and a court order or
other legal process makes the account available for withdrawal.

Guarantor:
A party who agrees to be responsible for the payment of another party's debts should that party
default.
Bank in the Economy
State-owned Oriental Bank of Commerce is aiming for a credit growth of 12
per cent in the current fiscal with focus on retail and SME lending.

"Bank intends to do between 10-12 per cent (loan) growth going forward.
Bank is not targeting to increase corporate credit in a big way. They are
targeting to increase the retail growth,"

The bank witnessed a 3.78 per cent credit growth in 2015-16.

Apart from retail, the bank will also focus on micro, small and medium
enterprises.

"Oriental Bank of Commerce has launched lot of new schemes for the MSME
sector and with that they expect to get a little better share on MSME lending
also.

Bank management further states that the bank will look for good lending
opportunities in the corporate sector as well, and as soon as the economy
picks up, demand for credit will rise.

With regard to recovery of bad loans, the bank is working on measures to

recover money from all defaulters including those who are willfully not clearing
their dues.

The bank witnessed deterioration in asset quality with gross non-performing

assets (NPAs), as a percentage of total advances, rising significantly to 9.57
per cent in the fourth quarter of 2015-16, from 5.18 per cent in the year-ago
period.

At the same time, the net NPA also rose to 6.70 per cent as against 3.34 per
cent in the same quarter of the previous fiscal.