You are on page 1of 39




Chapter-1: Profile of the Firm/Company


What is a bank?

Bank is defined as an institution for the keeping, landing and exchanging etc. of money. Economists have also defined a bank highlighting its various functions. According to Crowther, the banker business is to take the debt of other people to offer his own in exchange and thereby create money. Thus a bank is an institution that accepts deposits from the public in turn advances loans by creating credit. It is different from other financial institutions in that they cannot create credit though they may be accepting deposits and making advances.

Types of banks:
Commercial banks Exchange banks Industrial banks Agricultural banks Cooperative banks Saving banks Central banks

Banking Industry in India has always revolved around the traditional function of deposits and credit. Their role had been defined as to assist the overall economic growth with majority of share being controlled by the Government of India in most of the banks. But with the process of liberalization, and the technological revolution the banking industry has also undergone tremendous change in the last 5 years. The market, 3

which was largely controlled by the public sector banks, has now been facing stiff competition not only from foreign players but also from the new generation private sector banks. The rules of the game have been changing with the RBI introducing new norms to make banks more accountable and to adopt the practices followed worldwide. Most of the banks have now been trying to function on the concept of a Universal Bank. Apart from the traditional functions of a commercial bank, they are taking steps to build themselves into a one stop financial centre wherein all the financial products would be available. Banks have started catering to the retail segment to improve their deposit portfolio. In order to have a maximum share in this segment, most of the banks have been introducing new products. The delivery channels have also been shifted from branches to ATMs, phone banking, net banking etc. Banks traditionally involved in working capital financing have started offering consumer loans and housing loans. Some of the banks have started offering travel loans as well. Retail financing is the other area where the banks have started to concentrate. The loan formalities too have been relaxed to a great extent and sanctioning time has been speeded up.

Structure of the Banking

Bank of Maharashtra




Banking Capital Markets and allied industries

Founded Headquarters

1935 Bank of Maharashtra, Lokmangal Shivajinagar Pune India

Key people Products Revenue Total assets Website

SHRI A.S. BHATTACHARYA , Chairman Loans, Credit Cards, Savings, Investment vehicles etc. 6,093.94 crore (US$1.36 billion) Rs. 481 bn

Business Profile
Bank of Maharashtra is an Indian bank based in the city of Pune. The bank was established in the year 1935 with an initial authorized capital worth Rs. 10.00 Lacs, although it became operational in the early phase of the next year. The bank got nationalized by the Government of India in the year 1969. With a total number of 1421 6

branches located all over India as on April 2009, the bank claims to have the largest number of branches within the state of Maharashtra, among all the Public Sector Banks.

Commonly known as a common man's bank, Bank of Maharashtra adopts a philosophy of "Technology with personal touch", and follows its motto stating "One Family, One Bank, Bank of Maharashtra".

Facilities All the branches of Bank of Maharashtra have been fully computerized, with Depository services and Demat facilities being offered at 131 branches as of April 2009. The bank aims at increasing its ATM network from 345 to 500 soon, apart from planning to install Biometric ATMs at some selected branches. Apart from it, introduction of Phone Banking, Internet Banking and Mobile Banking is also on the cards.

Other Highlights Apart from providing regular banking services to the customers, Bank of Maharashtra has established two Joint Ventures to fulfill its other commitments towards the general public and society. These Joint Ventures are M-SETI and Mahabank Info Centre. Mahabank Self-Employment Training Institute (M-SETI) is an effort initiated by Mahabank Agricultural Research & Rural Development Fund (MARDEF), a trust run by Bank of Maharashtra receiving help from National Bank for Rurl Development

(NABARD). The institute runs various self-employment oriented training courses for the rural unemployed youth from the districts of Pune, Kolhapur, Satara, Sangli, Nashik, Ahmednagar, Jalgaon, Dhule and Nandurbar.

Mahabank Info Centre is a yet another initiative by Bank of Maharashtra aimed at providing various retail baking related information to the customers, and enabling smoother operations for them.

Head Office

Bank of Maharashtra Lokmangal, 1501, Shivajinagar, Pune (Maharashtra) - 411 005 Website:

History of the organization

Established in 1935, Bank of Maharashtra is one of the leading banks of India. Beginning with a mere capital of 10 lakhs on 8th February 1936, the bank targets to cross the Business level of Rs. 85,500/- crores by March 2009.

Renowned for promoting small businesses, Bank of Maharashtra is known as common man's bank. Working on the motto of Technology with Personal Touch, Bank of Maharashtra is catering to a large number of people across all strata of society. The nationalization of the bank in 1969 led to its rapid expansion and today Bank of Maharashtra over 1400 branches spread all across India.

The Bank of Maharashtra has incorporated the latest technology to provide best services to its customers. This public sector bank with largest network in Maharashtra hopes to reduce net NPA level to below 1%.

From the chairman and managing director

It gives me immense pleasure to interact through this Web Site of Bank of Maharashtra and I take this opportunity to share with you a few salient features of our strength. It is our ten million clientele whose valuable support and patronage facilitated the success of this well known institution.

I would like to recall and share with you that this great institution was founded way back in September 1935 by a group of dedicated persons of small means but with a great vision and wisdom. The objectives behind establishing Bank of Maharashtra were to mobilize the savings of household and extend financial support to persons of small means who were then not considered for credit facilities by banks. In a nutshell, the philosophy of founder fathers of the Bank was something more than what has been emphasized about the role of Public Sector Banks in the economic upliftment of rural poor and neglected segments of the society. Right from its inception the Bank has continued to play a vital role in carrying through this philosophy and has always been in the forefront in extending helping hand to the weakest of the weaker sections besides providing banking services to all the business, corporate, institutional and personal segments. Down the stream over more than 70 years, banking industry has witnessed sea change and the Bank could successfully sustain and face the emerging challenges including smooth transition in the era of banking sector reforms which were initiated in the year 1992.The Bank has been continuously making profits for many years. The overwhelming support and loyalty of ten million clientele has given us added strength from time to time and enabled this Bank to establish its network of more than 1300 branches spread over 22 States and 2 Union Territories, thus giving unique status of an All India Bank. This network is being expanded to cater to the banking needs of under banked areas. As the banking industry is undergoing rapid transformation and infusion of state-of-the-art technology in extending services is the order of the day, Bank of Maharashtra is no exception. With the ever increasing volume of business, number of clientele and their expectations of high quality service, the Bank have been


adopting latest technology to render cost-effective and customer-friendly products and services without losing its Personal Touch ". We have an ATM network operated through VISA Debit card across the country. This network is being continuously expanded. We have embarked on a very important technological initiative viz., Core Banking Solutions which is targeted to transform our Bank totally. It is our constant endeavor to regularly upgrade our skills and technology and we are eager to interact with as many well wishers as possible. The bank is proactive in revising its interest rates on deposits for the benefit of the customers. The Bank's objective is to continuously modify its existing products and introduce new products to meet changing needs of the customers. Recently we have started new services like Banc assurance in collaboration with LIC of India and United India Insurance Co Ltd and Foreign Inward remittances services through Western Union Money Transfer.


(Rs bn) Total deposits Demand 2003 7140 1174 11 2004 8132 1273 2005 8729 1266 2006 9928 1347

Time Total bank credit Food non-food Investments govt. sec other approved sec Cash in hand Balance with RBI Cash-Deposit ratio Investment-Deposit ratio Credit-Deposit ratio

5966 3688 168 3520 2545 2232 313 43 635 9.50% 35.70% 51.70%

6859 4358 256 4102 3088 2784 304 53 574 7.70% 38% 53.60%

7463 4667 320 4347 3332 3023 309 53 631 7.80% 38.20% 53.50%

7498 4779 373 4399 3347 3038 314 57 656 7.80% 38.20% 53.50%

Banks traditionally involved in working capital financing have started offering consumer loans and housing loans. Some of the banks have started offering travel loans as well. Retail financing is the other area where the banks have started to concentrate. The loan formalities too have been relaxed to a great extent and sanctioning time has been speeded up.

Mergers and Acquisitions have also started playing their role in the banking industry where lots of players are trying to consolidate their position. The recent merger of HDFC Bank with Times Bank and ICICI Bank with Bank of Madura are important steps in this direction. In recent times, most of the new private sector banks have shown interest in inducting a foreign partner in their operations. 12

Most of the banks are also planning to enter the insurance business and are in the process of identifying their strategic partners. Since most of the banks already have an extensive distribution network, this new business should result in substantial revenues. But with most of the top league players planning to enter this business, the more efficient and pro active players would be able to take a lead.

Bank of Maharashtra- Baprola

One of the renowned banks of India, Bank of Maharashtra has branches all over the country. Delhi being the capital city of India is one of the favorite locations for all the banks. Bank of Maharashtra in Delhi has several branches spread across the city, catering to banking needs of Delhi people.


Working with a motto of technology with personal touch, Bank of Maharashtra strives to achieve highest standards in providing banking facilities.

Bank of Maharashtra in Delhi provides following services to its customers:

Deposit Schemes

Mahasaraswati Scheme Mixed Deposit Scheme Mahabank Lok Bachat Yojana Mahabank Unit Deposit Scheme Sulabh Jama Yojana

Credit Facilities

Educational Loans Housing Finance Scheme Mahabank Adhar Scheme Mahabank Vehicle Loan Scheme

Banking Services

ATM Credit Card 14

Demat Services Distribution of Mutual Funds

NRI Services

Techno Products Add-on Services

Branches of Bank of Maharashtra in Delhi

Branch Name Baprola

Address Opp Talab Village, Baprola, Nangloi, Najafgarh Road, New Delhi

Dayanand Vihar Delhi Asaf Ali Road Delhi Chandani Chowk Delhi Connaught Place

12, Dayanand Vihar, New Delhi -110092 Horchest House, 3/1 Asaf Ali Road , New Delhi 110001 1899, Ist Floor, Chandani Chowk, Delhi 110006 Maharashtra Bank Building, B-29, Connaught Place Delhi 110001

Delhi Dr Mukherjee

B-9/10, Main Road, Commercial Complex, Dr


Nagar East Patel Nagar Greater Kailash Janak Puri Karol Bagh Preet Vihar

Mukherjee Nagar, Delhi 828/6, East Patel Nagar, Delhi 110005 M-16, Greater Kailash II, K Block Market, Delhi 110048 22-23, Institutional Area, D- Block Janak Puri, Delhi 5/36, W E A, Karol Bagh, New Delhi 110005 F-12, Dashmesh Niwas, Vikas Marg, Preet Vihar, Delhi 110092 6/44 W E A, Ajmal Khan Road, Karol Bagh, Delhi

Delhi Service Branch 110005 Delhi UPSC Dwarka New Delhi Paschim Vihar Pushpanjali Enclave, New Delhi Rohini, Delhi Rohini, Delhi 110085 10/401, Sunder Vihar, Paschim Vihar, Delhi 110087 A-26, Pushpanjali Enclave, Pitampura, New Delhi 110034 Garg Trade Center, Community Center, Sector II, Dholpur House, Shahajahan Road, UPSC, Delhi 110011 Antariksha Plaza, Plot No. 2, Sector 10, MLU Dwarka,


I have completed my summer training in the Bank of Maharashtra Baprola branch. So the IFSC code details and Baprola Branch Information is provided below:

BANK OF MAHARASHTRA - BAPROLA is located at DELHI state, DELHI district, METRO city.


Contact phone number / numbers - 25325515.

The IFSC Code is MAHB0001247.

Branch code is the last six characters of the IFSC Code - 001247.


Range of products and services:

Personal Loans Car Loans Two Wheeler Loans Commercial Vehicle Loans Loans Against Securities Farm Equipment Loans Construction Equipment Loans Office Equipment Loans Medical Equipment Loans Home loan

Board of Directors:
Shri Anup Sankar Bhattacharya( Chairman and Managing Director) Shri M.G Sanghvi( Executive Director) Shri. V. P. Bhardwaj Ms. Kamala Rajan Shri. A. K. Pandit Dr. D. S. Patel Dr. S. U. Deshpande Shri. S. D. Dhanak Dr. Naresh Kumar Shri. Ramesh C. Agrawal


Vision of the organization:

To be a vibrant, forward looking, techno-savvy, customer centric bank serving diverse sections of the society, enhancing share holders' and employees value while moving towards global presence.

Mission of the organization:

To ensure quick and efficient response to customer expectations. To innovate products and services to cater to diverse sections of society. To adopt latest technology on a continuous basis. To build proactive professional and involved workforce. To enhance the shareholders wealth through best practices and corporate governance. To enter international arena through branch network. To be a vibrant, forward looking, techno-savvy, customer centric bank serving diverse sections of the society, enhancing shareholders' and employees' value while moving towards global presence.


The autonomy:

The Bank attained autonomous status in 1998. It helps in giving more and more services with simplified procedures without intervention of Government.

Social aspect:

The bank excels in Social Banking, overlooking the profit aspect; it has a good share of Priority sector lending having 38% of its branches in rural areas.

Other attributes:

Bank is the convener of State level Bankers committee. Bank offers Depository services and Demat facilities at 131 branches. Bank has a tie up with LIC of India and United India Insurance Company for sale of Insurance policies. All the branches of the Bank are fully computerized.

Company snapshot:


BSE: 532525 | NSE: MAHABANK | ISIN: INE457A01014 Market Cap: [Rs.Cr.] 2,329 | Face Value: [Rs.] 10 Industry: Banks - Public Sector

48.35-1.55 [3.1]%

BSE Day's High | Low Day's Volumes 52Wk High | Low Open Price Turnover Deliverable Vol. 6 Mth. Avg. Vol.

Sep 22,00:00 49.40 | 48.20 28,946 84.95 | 47.00 49.40 1,406,038.00 15,050 120,301.21

48.25-1.50 [3.0]%



Sep 22,00:00 Day's High | Low Day's Volumes 52Wk High | Low Open Price Turnover Deliverable Vol. 6 Mth. Avg. Vol. 49.70 | 48.10 104,929 85.00 | 47.15 49.70 5,094,315.90 61,921 465,529.44

Key ratios

Mar-11 P/E (x) P/BV (x) RONW (%) ROCE (%) EV/ EVBIDTA (x) Dividend Yield (%) APATM(%) EPS 10.22 0.97 11.3 0.0 16.97 4.1 0.0 5.8

Mar-10 5.03 0.89 19.7 0.0 15.07 4.1 0.0 9.9

Mar-09 2.45 0.43 19.6 0.0 14.16 4.1 0.0 8.5

Shareholding Pattern
No. of Particulars Shares(Mn)
Total Promoter Holdings Total Govt Holding (Promoter + Non Promoter) Total Domestic Institutions (Banks/ FI + MF / UTI) Total Foreign Holdings (FII+NRI holdings) Total Non Promoter Corporate Holdings

% Holdings 79.2 0.0 8.8 1.2 1.5

381.71 0.00 42.22 5.72 7.05


Total Public & Others (Individuals + HUF + Clearing members) Total

45.02 481.71

9.3 100

Bank of Maharashtra Internet Banking

The Internet Banking service provided by Bank of Maharashtra is referred to as Mahaconnect by the bank. Bank of Maharashtra provides 24 hours access to banking services and financial transactions to the customers who can enjoy these facilities from the comfort of their home. Mahaconnect has become widely popular among Bank of Maharashtra customers as it provides great flexibility for carrying out banking transactions. Mahaconnect has gradually transformed from nice to have feature to need to have feature for the customers.Mahaconnect is made for all the customers of CBS branches of Bank of Maharashtra. Thus, customer only needs an active internet connection along 23

with PC with minimum PII processor, 32 MB RAM, any browser such as Internet Explorer 5.0 or above for availing the net banking facility.

Mahaconnect Online banking features:

Bank of Maharashtra internet banking or Mahaconnect offers wide array of services to the customers including most commonly accessed banking features. It has made the life easier for the customers by offering stress free banking transactions from their home. Some of the salient features offered by Bank of Maharashtra online banking are as follows: Checking account balance and see previous transactions Online Transferring of funds between accounts Check and Print Bank statements for past few months


Online payment of taxes Online Monitoring of accounts activity Update personal profile like address and phone number Check the status of the cheques online Request for new cheques online

Apply for Mahaconnect (Internet Banking)

In order to apply for Mahaconnect Online Banking, customers can visit the site at and download the application form for Online Banking. The form can also be obtained from the branch. After completing the application form, it can be submitted to any nearest branch of the bank. On successful processing of the application, customer will receive User Id, Login Password and Transaction password. Customer can login to net banking site of Mahaconnect using the UserID and login password. Once logged in customer can avail many online banking services offered by Bank and perform various financial transactions. 25

The User Id & Passwords for login to the Mahaconnect will be sent to the registered address of customer with the Bank. Customer should ensure that his current address is updated in the Banks record. It is suggested that new customers should completely read the general information page so that they will get the idea of using the various banking services online. It is very easy to conduct all the banking transactions online. It is useful for those who are unfamiliar with online banking service.

Mahaconnect Security Features

The Mahaconnect or online internet banking service of Bank of Maharashtra is highly secure and provides hassle free and secure financial transactions. The high level of security measures ensure that the customers account information and online transactions are well protected. It employs 128-bit encryption codes for encryption of data so that no one else can view or decipher the online transactions. The presence of firewalls provides security against any unauthenticated programs. These data security


measures and encryption standards of Bank of Maharashtra are of international standards.


Chapter-2: SWOT Analysis of the Company


STRENGTHS:a) Promoters are experienced and qualified professionals. b) Market driven organization. c) Diversified customer base. d) Limited exposure per client to ensure low risk. e) Low cost of operation. f) Low NPA-level. 28

g) High margin of profit.

WEAKNESS:a) Primary securities are not tangible. b) Different to verify the primary security. c) Business activity is in sensitive sector.

OPPORTUNITIES:Big and diverse market size


Multinationals, banks and big finance companies are eying on the same market segment. Government policy and adhoc fiscal policy changes.


Analysis of Financial Reports of the Company

Balance sheet of Bank of Maharashtra


Mar '11 12 mths Capital and Liabilities: Total Share Capital Balance Sheet of Bank of Maharashtra Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves Net Worth Deposits Borrowings Total Debt Other Liabilities & Provisions Total Liabilities 1,069.71 481.71 0.00 588.00 2,457.67 443.55 3,970.93 66,844.74 3,076.56 69,921.30 2,549.99 76,442.22

Mar '10 12 mths

Mar '09 12 mths

Mar '08 12 mths

Mar '07 12 mths

430.52 430.52 430.52 ------------------- in Rs. Cr. ------------------430.52 430.52 430.52 0.00 0.00 1,973.32 454.57 2,858.41 63,304.07 2,796.95 66,101.02 2,096.36 71,055.79 0.00 0.00 1,634.48 452.19 2,517.19 52,254.92 190.01 52,444.93 4,068.23 59,030.35 0.00 0.00 1,334.87 16.12 1,781.51 41,758.33 199.25 41,957.58 4,411.83 48,150.92

430.52 430.52 0.00 0.00 1,285.09 26.27 1,741.88 33,919.34 200.90 34,120.24 3,147.35 39,009.47


Mar '11 12 mths Assets Cash & Balances with RBI Balance with Banks, Money at Call Advances Investments Gross Block Accumulated Depreciation Net Block Capital Work In Progress Other Assets Total Assets Contingent Liabilities Bills for collection Book Value (Rs) 3,846.00 203.35 46,880.77 22,491.08 1,319.87 653.08 666.79 0.00 2,354.22 76,442.21 12,978.50 3,538.05 61.02

Mar '10 12 mths

Mar '09 12 mths

Mar '08 12 mths

Mar '07 12 mths

5,315.39 1,379.16 40,314.70 21,323.85 1,248.76 589.23 659.53 0.00 2,063.16 71,055.79 16,413.30

3,881.42 223.92 34,290.77 18,382.14 1,169.25 514.44 654.81 0.00 1,597.30 59,030.36 14,186.93 2,830.82 47.97

3,893.88 332.05 29,285.81 12,282.95 669.78 449.35 220.43 0.00 2,135.79 48,150.91 4,515.21 2,666.08 41.01

2,270.20 1,071.18 22,919.38 11,298.40 572.02 357.12 214.90 0.00 1,235.41 39,009.47 12,594.64 1,953.09 39.85


2,950.43 55.84

Profit & Loss account of Bank of Maharashtra

Profit & Loss account of Bank of Maharashtra Mar '11 12 mths Income Interest Earned Other Income Total Income Expenditure Interest expended Employee Cost Selling and Admin Expenses Depreciation Miscellaneous Expenses Preoperative Exp Capitalised Operating Expenses Provisions & Contingencies Total Expenses 3,594.69 1,157.08 589.56 67.86 507.18 0.00 1,986.23 335.45 5,916.37 Mar '11 12 mths Net Profit for the Year Extraordionary Items Profit brought forward Total Preference Dividend Equity Dividend Corporate Dividend Tax Per share data (annualised) Earning Per Share (Rs) Equity Dividend (%) Book Value (Rs) Appropriations Transfer to Statutory Reserves Transfer to Other Reserves Proposed Dividend/Transfer to Govt Balance c/f to Balance Sheet Total 97.64 5.33 146.85 365.45 615.27 3.07 20.00 61.02 177.58 152.81 284.88 615.27 29.59 96.34 20.92 5,563.09 530.86 6,093.95

------------------- in Rs. Cr. ------------------Mar '10 12 mths Mar '09 12 mths Mar '08 12 mths Mar '07 12 mths

4,735.56 591.24 5,326.80 3,439.31 655.50 468.37 75.09 248.89 0.00 1,323.58 124.27 4,887.16 Mar '10 12 mths 439.66 -0.08 127.84 567.42 0.00 86.10 14.63 10.21 20.00 55.84 150.72 31.08 100.73 284.88 567.41

4,291.56 500.02 4,791.58 3,035.03 579.62 372.70 75.76 366.06 0.00 1,150.18 243.96 4,429.17 Mar '09 12 mths 362.40 12.77 258.61 633.78 0.00 64.58 10.98 8.42 15.00 47.97 171.78 258.61 75.56 127.84 633.79

3,540.58 380.29 3,920.87 2,311.79 485.30 259.18 68.78 470.24 0.00 922.66 360.84 3,595.29 Mar '08 12 mths 325.59 2.80 134.66 463.05 0.00 86.10 14.63 7.56 20.00 41.01 103.70 0.00 100.73 258.61 463.04

2,722.04 378.52 3,100.56 1,627.84 464.04 279.54 53.80 447.19 0.00 884.53 360.04 2,872.41 Mar '07 12 mths 228.15 43.69 40.84 312.68 0.00 86.10 14.63 5.30 20.00 39.85 77.28 0.01 100.73 134.66 312.68


Cash Flow of Bank of Maharashtra

Cash Flow of Bank of Maharashtra ------------------- in Rs. Cr. -------------------

Mar '11 12 mths Net Profit Before Tax Net Cash From Operating Activities Net Cash (used in)/from -86.17 Investing Activities Net Cash (used in)/from Financing Activities Net (decrease)/increase In Cash and Cash -2645.20 Equivalents Opening Cash & Cash Equivalents Closing Cash & Cash Equivalents 6694.56 4049.36 438.90 0.00 -2997.93

Mar '10 12 mths 0.00 2336.63 -64.77 317.36 2589.22 4105.34 6694.56

Mar '09 12 mths 0.00 346.28 -75.49 -391.39 -120.60 4225.94 4105.34

Mar '08 12 mths 0.00 726.64 -97.76 255.68 884.55 3341.38 4225.94

Mar '07 12 mths 0.00 484.48 -78.42 546.59 952.65 2388.73 3341.38


Capital Structure (Bank of Maharashtra)

Capital Structure (Bank of Maharashtra) From 2010 2009 2008 2007 2006 2005 2004 2003 2002 1999 Period To 2011 2010 2009 2008 2007 2006 2005 2004 2003 2000 Instrument Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Authorized Capital
(Rs. cr)

Issued Capital
(Rs. cr)

-PAIDUPShares (nos) Face Value 481712553 430520000 430520000 430520000 430520000 430520000 430520000 430520000 330520000 330520 10 10 10 10 10 10 10 10 10 10

Capital 481.71 430.52 430.52 430.52 430.52 430.52 430.52 430.52 330.52 0.33

3000 3000 1500 1500 1500 1500 1500 1500 1500 0.33

481.71 430.52 430.52 430.52 430.52 430.52 430.52 430.52 330.52 0.33


Chapter-4: Lessons Learnt


Internship Experience

Being a student of , was able to have an opportunity to be at the Bank of Maharashtra. This was a great chance for me to enhance and gain practical knowledge at a work place. Internship is the right way to start a career this statement was unclear until I stepped at the Bank. The Bank Internship offers highly motivated and successful individuals an opportunity to improve their skills while working in a diverse environment. Interns generally find the experience to be rewarding and interesting.

Major things I have learned

In my training, I have been taught about:

General banking like depositing and withdrawing money from the accounts with

the help of cheques and vouchers.

Transferring amount from one account to another by cheque or voucher. Opening and closing of saving account. Reopening of saving account. Clearing of cheques: Inward clearing.



The banking system is indispensable in the modern society. It plays a key role in the economic development and forms the core of the money market in an advanced economy. Realizing the crucial role of the banks in the national economy. The Government of India nationalized fourteen major commercial banks in July.1969 and six more in April, 1900. As a result of this 'banking revolution', the old concepts, attitudes and methods of banking in India have changed. Now the credit institutions in the country are required to participate in the nation building activities and help in bringing about socio-economic changes. Banks. As social institutions have to go out to the people and assist the weaker and neglected sections of the society in achieving their socio-economic aspirations. They are to act as catalysts in the development of the country mobilizing resources wherever they may be, and channelizing them towards productive purposes. The role of the public sector banks in India is all the more enhanced with the implementation of the Banking Sector Reforms introduced on the basis of the recommendations of the Narasimham Committee on the Financial System.

Though with some silver linings here and there, the individual performance of all the nationalized banks in India are far from satisfactory. The poor state of affairs of the banks is all the more brought to light with the introduction of the Financial Sector Reforms. All the nationalized banks incurred a net loss during the year 1992-93. The aggregate net loss of the nationalized banks came to Rs.3,64, 292 lakhs and Rs.3,44.664 lakhs during 1992-93 and 1993-94 respectively. Syndicate Bank, a bank that performed unusually well during the pre-nationalization and early post-nationalization periods and


which show the same decelerating trend in performance along with other nationalized banks is taken as a case study.

Bank of Maharashtra with a score of 264.37 in Composite Performance is the least performing bank next to New Bank of India. The study reveals the overall performance of all the nationalized banks in India. The relatively poor performance of Syndicate Bank in the various parameters identified in the present study resulted in its dismal picture in all round performance. Except f-or the two parameters, 'growth' and 'productivity', the Bank's performance in all the other parameters are really uncomfortable. When compared to Syndicate Bank fourteen banks fared better in overall performance as indicated by their Composite Performance Score (CPS). Only four nationalized banks exhibit poor performance in relation to Syndicate Bank.

Thus it can be concluded that the performance of the nationalized banks especially banks like Syndicate bank leaves scope for improvement. The Composite Performance Score of the individual nationalized banks including that of Bank of Maharashtra is capable of showing improvement if the banks take earnest efforts to enhance their performance in the vital areas viz, internal management, asset management, technology up gradation and customer service. Such an effort would lead to the enhancement of the performance in all the parameters and eventually to the composite performance/ overall performance of the bank.


Banking : The Network is the bank, by Yogesh Sharma, Dataquest, January 31, 2006

Race will end in survival of the fittest, The Financial Express, November 29, 2006.

The Times of India, 26 July, 2007. The future is in e-banking by Mr. K.V. Kamath (Managing Director, ICICI), April 14, 2002, Business Line.

RBI road map for banking, The Indian Express, July 21,2007. Banking in India, by Dr A. K. Mishra (Professor & Chairman of Finance Group at IIM Lucknow).