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Submitted to University of Mumbai in partial for the fulfillment for the requirements of the award of degree




This is the certify that the project entitled PROJECT REPORT ON BANKING SECTOR ON SARASWAT BANK is a true and satisfactory work done by Mr.Sudama Eppili, T.Y.B.B.I, Roll No. 05. The report is to submitted to university of Mumbai in partial fulfillment for the requirement of the award of the degree of Bachelor of commerce (Banking & insurance) for the academic year 2012-2013.

----------------------------------Signature of Project Guide

-----------------------------------------Signature of External Examiner

---------------------------------Signature of Coordinator

---------------------------------------Signature of Principal

College Seal


I, Mr. Sudama Eppili, student of Patuck-Gala College of Commerce & Management. T.Y.B.B.I (Sem V) hereby declares that I have completed the project on PROJECT REPORT ON BANKING SECTOR ON SARASWAT BANK in the academic year 2012-2013. The subject matter contained in this project is a research work and most of the work carried out is original and was gone under the guidance Mr. Pallav Das. The information submitted is true and original to the best of my knowledge.

-----------------------------Sudama Eppili Roll No: 05

It is my nearest and sincere desire and ambition to acquire profound knowledge in the study of banking and insurance. I have had considerable help to advice at very outset of his project. It is my pleasure to acknowledge the help and guidance from those personnel and to thank them individually. First of all, I express my sincere thank to Mr. Pallav Das, Class teacher of our college for having given me chance to undergo the project. Secondly, I convey mi sincere thanks to the Course Coordinator Ms Byshi Panikar for her valuable suggestion and co-operation which help to me complete the project successfully. The compilation of project is a milestone in the life of the banking & insurance and its execution is inevitable without the co-operation of the project guide. I am deeply grateful to my project guide Mr. Pallav Das for the valuable ideas, required suggestions and encouragement for refining this project study. Finally, I think all the staff of our college and my friend for their valuable support and contribution to my project.



Macro analysis 1) 2 INTRODUCTION Current trends and technologies 2.1) Internet banking 2.2)Phone banking 2.3)Mobile banking 3) Market structure 3.1) Globalization 3.2) Indian banking market 4) Banking Terminology 4.1) Bank Rate 4.2) Repo Rate 4.3) Reverse Repo Rate 4.4) Cash Reserve Ratio 4.5) Statutory Liquidity Ratio


Government Policy 5.1)Scheme for financial assistance 5.2)Medical expenses 5.3)Illness covered 5.4) Customer centric banking

6) 7)

Top 10 banking companies in world Top 5 banking companies in India

MICRO ANALYSIS 8) 9) About Saraswat Bank Current Position 9.1)Graph : Total Business 9.2)Graph : Working Funds 9.3)Graph : Deposits 9.4 ) Graph :Advances 10) Financial Analysis 10.1)Maximizing CASA deposits 10.2) Reduction in NPA 10.3)Marketing


4 Ps of marketing 11.1) Product 11.2) Price 11.3 ) Promotion 11.4) Place

12) 13) 14) 15) 16) 17) 18)

HR Policy and organizational structure CSR (Corporate Social Responsibility) Effects of recession on Indian banking sector Govt. Policies Awards and recognition Conclusion Bibliography and references

INTRODUCTION The first bank in India, though conservative, was established in 1786. From 1786 till today, the journey of Indian Banking System can be segregated into three distinct phases. They are as mentioned below: Early phase from 1786 to 1969 of Indian Banks Nationalization of Indian Banks and up to 1991 prior to Indian banking sector Reforms. New phase of Indian Banking System with the advent of Indian Financial & Banking Sector Reforms after 1991. Banking in India originated in the last decades of the 18th century. The first banks were The General Bank of India which started in 1786, and the Bank of Hindustan, both of which are now defunct. The oldest bank in existence in India 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. For many years the Presidency banks acted as quasi-central banks, as did their successors. 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 1865 Allahabad Bank was established and first time exclusively by Indians, Punjab National Bank Ltd. was set up in 1894 with headquarters at Lahore. Between 1906 and 1913, Bank of India, Central Bank of India, Bank of Baroda, Canada Bank, Indian Bank, and Bank of Mysore were set up. Reserve Bank of India came in 1935. Reserve Bank of India was vested with extensive powers for the supervision of banking in India as the Central Banking Authority. The following are the steps taken in chronological order by the Government of India to Regulate Banking Institutions in the Country: 1949: Enactment of Banking Regulation Act.

1955: Nationalization of State Bank of India. 1959: Nationalization of SBI subsidiaries. 1961: Insurance cover extended to deposits. 1969: Nationalization of 14 major banks. 1971: Creation of credit guarantee corporation. 1975: Creation of regional rural banks. 1980: Nationalization of seven banks with deposits over 200 crore.

The nationalization of banks in India was initiated in 1969 by Mrs. Indira Gandhi, the then prime minister. After the nationalization of banks, the branches of the public sector bank India rose to approximately 800% in deposits and advances took a huge jump by 11,000%. In1991, under the chairmanship of M. Narasimham, a committee was set up by his name which worked for the liberalization of banking practice. The country was flooded with foreign banks and their ATM stations. Efforts were being put to give a satisfactory service to customers. Phone banking and net banking were introduced. The entire system became more convenient and swift. Time is now given more importance than money. The commercial banking structure in India consists of: Scheduled Commercial Banks in India Unscheduled Banks in India Scheduled Banks in India constitute those banks which have been included in the Second Schedule of Reserve Bank of India (RBI) Act, 1934. RBI in turn includes only those banks in this schedule which satisfy the criteria laid down vide section 42 (6) (a) of the Act. As on 30th June, 1999, there were 300 scheduled banks in India having a total network of 64,918 branches. The scheduled commercial banks in India comprise of State bank of India and its associates (8), nationalized banks (19), foreign banks (45), private sector banks(32), co-operative banks and regional rural banks. "Scheduled banks in India" means the State Bank of India constituted under the State Bank of India Act, 1955 (23 of 1955), a subsidiary bank as defined in the State Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959), a corresponding new bank constituted under

section 3 of the Banking Companies(Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970), or under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980), or any other bank being a bank included in the Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934), but does not include a co-operative bank". "Nonscheduled bank in India" means a banking company as defined in clause (c) of section 5 of the Banking Regulation Act, 1949 (10 of 1949), which is not a scheduled bank".



Technology plays a very important role in banks internal control mechanisms as well as services offered by them. It has in fact given new dimensions to the banks as well as services that they cater to and the banks are enthusiastically adopting new technological innovations for devising new products and services. The latest developments in terms of technology in computer and telecommunication have encouraged the bankers to change the concept of branch banking to anywhere banking. Use of ATMs and Internet banking has allowed anytime, anywhere was banking facilities. Automatic voice recorders now answer simple queries; currency accounting machines make the jobs easier for the employees and ensure faster service to the customers. Credit card facility has encouraged an era of cashless society. Today MasterCard and Visa card are the two most popular cards used world over. The banks have now started issuing smartcards or debit cards to be used for making payments. These are also known as electronic purses. With increasing popularity of tele-banking and ebanking, banking has become a 24*7 activity. And a system like Electronic Clearing Service has made receiving dividends and interest easier and safer by making bulk transfers from one account to many accounts (or vice-versa) possible. Mobile banking too is growing rapidly and banks are using SMS as major tool of promotion, giving great utility to their customers. With such changes in technology, banks today have left behind their traditional role of accepting deposits and lending money and focus on providing premium services to their customers to retain their brand name and reputation in the market. Internet Banking Phone Banking/Tele-Banking Mobile Banking

Internet banking: Internet banking Also referred to as E-banking, internet banking is changing the banking industry and is having the major effects on banking relationships. Almost every bank has a website today and provides for delivery of its products & services electronically. In true Internet banking, any inquiry or transaction is processed online without any reference to the branch at any time. Providing Internet banking is increasingly becoming a "need to have" than a "nice to have" service, and it is soon to become a norm from an exception due to the fact that it is the cheapest way of providing banking services. Using e-banking a customer can view account balances & statements, transfer funds between accounts, create FDs Online, request a DD, pay bills, order a cheque book, request stop payment on a cheque, apply for and access credit cards, apply for loans and most importantly gets easy access to complete information about various products and offers.

Phone Banking: It use an automated phone answering system with phone keypad response or voice recognition capability. This feature is known as Interactive Voice Response System (IVR). With the obvious exception of cash withdrawals and deposits, it offers virtually all the features of an automated teller machine: account balance information and list of latest transactions, electronic bill payments, funds transfers between a customer's accounts, etc. Some banks engage call centers to provide 24*7 services to their customers, via toll-free numbers. Others connect their customers to phone bankers, but in this case, the service is only available for particular hours for which phone bankers are available. Some make use of both i.e. toll-free numbers for some services, and phone bankers for the ones that require professional assistance. Telephone banking representatives are usually trained to do what was traditionally available only at the branch: loan applications, investment purchases and redemptions, cheque book orders, debit card replacements, change of address, etc.

Mobile Banking: (also known as M-Banking, mbanking) is a term used for performing balance checks, account transactions, payments, credit applications and other banking transactions through a mobile device such as a mobile phone or Personal Digital Assistant (PDA). Mobile banking and Mobile payments are often, incorrectly, used interchangeably. The two terms are differentiated by their service provider-to-consumer relationship; financial institutionto-consumer versus commercial institution-to-consumer for mobile banking and payments, respectively. Mobile Banking involves using mobile devices gain to access financial services. Mobile payments on the other hand may be defined as the use of mobile devices to pay for goods or services either at the point of purchase or remotely. Bill payment is not considered a form of mobile payment because it does not occur in real time. The earliest mobile banking services were offered over SMS, a service known as SMS banking. With the introduction of the first primitive smart phones with WAP support enabling the use of the mobile web in 1999, the first European banks started to offer mobile banking on this platform to their customers. Mobile banking has until recently (2010) most often been performed via SMS or the Mobile Web. Apples initial success with iPhone and the rapid growth of phones based

on Google's Android (operating system) have led to increasing use of special client programs, called apps, downloaded to the mobile device.

MARKET STRUCTURE GLOBALIZATION Strengthening financial systems has been one of the central issues facing emerging markets and developing economies. This is because sound financial systems serve as an Important channel for achieving economic growth through the mobilization of financial savings, putting them to productive use and transforming various risks. Many countries adopted a series of financial sector liberalization measures in the late1980s and early 1990sthat included interest rate liberalization, entry deregulations, reduction of reserve requirements and removal of credit allocation. In many cases, the timing of financial sector liberalization coincided with that of capital account liberalization. Domestic banks were given access to cheap loans from abroad and allocated those resources to domestic production sectors. The Main banking sector can be divided into five distinct sub-sectors: 1. Clearing 2. Private 3. Off- Retail 4. Savings 5. Trust Over the past 15 years the sector has grown by between 3% and 9% pa but has been in decline since 2002 and faces a further sharp reduction. Banking facilities on the range from basic current and deposit account facilities to complex wealth management structures. However, there is no genuinely uniqueness in Man banking products. In a global context, the Man banking sector offers a mainly retail, mass-affluent proposition targeting UK expatriates. Its chief revenue stream is derived from international personal client business referred from UK and International Group offices.

INDIAN BANKING MARKET Indian banks have compared favorably on growth, asset quality and profitability with other regional banks over the last few years. The banking index has grown at a compounded annual rate of over 51 per cent since April 2001 as compared to a 27 per cent growth in the market index for the same period. Policy makers have made some notable changes in policy and regulation to help strengthen the sector. These changes include strengthening prudential norms, enhancing the payments system and integrating regulations between commercial and co-operative banks. However, the cost of intermediation remains high and bank penetration is limited to only a few customer segments and geographies. While bank lending has been a significant driver of GDP growth and employment, periodic instances of threatened the stability of the system Structural weaknesses such as fragmented industry structure, restrictions on capital availability and deployment, lack of institutional support infrastructure, restrictive labour laws, weak corporate governance and ineffective regulations beyond Scheduled Commercial Banks (SCBs), unless addressed, could seriously weaken the health of the sector. Further, the inability of bank managements (with some notable exceptions) to improve capital allocation, increase the productivity of their service platforms and improve the performance ethic in their organizations could seriously affect future performance. The second unique feature of Indias banking sector is that the Reserve Bank of India has permitted commercial banks to engage in diverse activities such as securities related transactions, foreign exchange transactions and leasing activities.

EFFECT OF GLOBAL CRISIS ON INDIAN BANKING SECTOR: India escaped a major and fatal injury to its economy even in the context of a full-blown global economic crisis. This happened mainly owing to: Our high savings rate at around 34% to 35% of GDP Our lesser dependence on the external sector Sustained and strong domestic demand particularly in Indias semi-urban and rural sector Strong regulatory oversight and a well-calibrated monetary policy Our sumptuous foreign exchange reserves A gradual and lower convertibility on capital account Despite the strong prevalence of domestic sources of growth, the global financial crisis interrupted the growth momentum in India. There was clear moderation in growth by the third quarter of 2008-09. This is evident from the fact that the second-half GDP growth was only 5.8%, down from 7.8% for the first half of the year and 9.0% for the previous financial year 2007-08.

GLOBAL FINANCIAL CRISIS As we are passing through difficult but challenging times as far as the financial sector is concerned, I thought of sharing with you some of the issues which are currently engaging the attention of the regulators around the world including the Reserve Bank of India for ensuring the stability and resilience of the financial sector. Though, it has been analyzed threadbare in different for a, it would not be out of place to start with a birds eye view of the global financial crisis to put the recent developments in proper perspective. The global financial crisis, though brewing for a while, started to show its severe effects from the latter part of 2007 and into 2008. Under its impact, world stock markets fell, large financial institutions collapsed or were bought out and Governments in most developed countries had to use public funds to formulate rescue packages to bail out their financial systems. There has been a broad consensus that regulatory failures are among the causes underlying the recent global financial crises. Some of the more salient weaknesses identified as drivers of the turmoil include lack of oversight of systemic risk, over-reliance on credit rating agencies, procyclical tendencies of regulatory frame work, shortcomings in risk management practices, laxity in oversight of shadow banking entities, financial innovation outpacing regulation and weaknesses in accounting and disclosures. As a result, there has been an international endeavor to strengthen regulation of banks and financial institutions and bring about a greater element of convergence therein. Against this backdrop, firstly, I would outline the drivers for changing regulation of banks. Secondly, I would briefly present the global efforts aimed at formulating a regulatory reform agenda. Thirdly, I would analyze the likely impact of the evolving convergence in terms of implementing the saidagenda. Fourthly I will touch upon certain issues which are specific to Chhattisgarh before concluding my speech.

TOP BANKS IN THE WORLD The largest banks in the world based on market capitalization as of January 20, 2012.

Market cap ($b, Rank Bank Industrial & Commercial Bank of 1 China (ICBC) China 240.95 Country 20/1/2012)

2 China Construction Bank



3 Wells Fargo & Co



4 HSBC Holdings



5 Agricultural Bank of China



6 JP Morgan Chase



7 Bank of China



8 Itau Unibanco 9 Citigroup

Brazil US

88.17 86.67

10 Commonwealth



11 Royal Bank Canada



12 Bank of America



13 Toronto-Dominion Bank



14 Banco Santander 15 Westpac

Spain Australia

67.32 65.77

16 Mitsubishi UFJ Financial



17 Banco Bradesco



18 Sberbank of Russia 19 ANZ Banking

Russia Australia

59.36 58.48

20 Bank of Nova Scotia



21 Standard Chartered



22 National Australia Bank 23 US Bancorp 24 BNP Paribas

Australia US France

56.04 54.85 54.21

25 Goldman Sachs Group 26 UBS

US Switzerland

53.53 52

27 Bank of Communications



28 China Merchants Bank



29 Sumitomo Mitsui Financial 30 BBVA

Japan Spain

43.62 42.98

31 Banco do Brasil 32 Barclays

Brazil UK

42.19 42.07

33 Deutsche Bank



34 Bank of Montreal



35 Mizuho Financial Group



36 Morgan Stanley



37 Banco Santander (Brasil)



38 Lloyds Banking Group



39 Nordea Bank



40 China Citic Bank



41 PNC Financial Services



42 Credit Suisse Group



Canadian Imperial Bank of 43 Commerce (CIBC) Canada 30.76

44 Intesa Sanpaolo



45 BOC Hong Kong

Hong Kong


46 Shanghai Pudong Development Bank



47 Bank of New York Mellon



48 Royal Bank of Scotland



49 Hang Seng Bank

Hong Kong


50 State Bank of India




1.State Bank of India 2.HDFC Bank 3.Punjab National bank 4.ICICI Bank 5.Axis Bank 6.Bank of Baroda 7.Citi Bank 8.IDBI bank 9.Bank of India 10.Canara Bank

The Top 10 Banks in India based on AssetsS.No. Bank Total Assets as of Dec,2008 (in US $ millions) 1 2 3 4 5 6 7 8 9 10 State Bank of India ICICI Bank Limited Punjab National Bank Bank of Baroda Bank of India Canara Bank HDFC Bank Ltd IDBI Bank Ltd Union Bank of India Central Bank of India 256,124.00 94,747.00 49,777.00 45,600.00 44,432.00 43,210.00 36,000.00 34,169.00 31,598.00 29,026.00

GOVT. POLICIES: In order to address the severe liquidity crunch, the Reserve Bank of India introduced a slew of measures since mid-September 2008, viz. reduction in CRR from 9% to 5%, SLR from25% to 24%, buyback of MSS securities, opening of new refinancing windows, increase in ceilings on non-resident deposits and easing of restrictions on external commercial borrowings and on shortterm trade credits. Policy rates were also cut repo by 400 bps from 9% to 5% and reverse repo by 250 bps from 6% to 3.50%. The fiscal and monetary stimulus measures initiated during FY 2008-09 coupled with lower crude and metal prices somewhat cushioned the down-turn in growth momentum in FY 2009-10. While the domestic financial situation is improving, external financial environment will remain tight. Therefore, investment demand will be at lower ebb. On balance, with the assumption of a normal monsoon, the GDP growth for FY 2009-10 is expected to be around 7% to 7.5%, going forward.

Following are few guidelines directed by the RBI for the UCB sector: RBI has asked Scheduled Co-operative Banks to draw the ALM structural Liquidity statement on a daily basis. RBI has notified that approvals for branch expansion including off-site ATMs in respect of UCBs will henceforth be considered based on their Annual Business Plans, subject to certain criteria. RBI has permitted well-managed and financially sound multi-state UCBs to set up onsite ATMs without prior approval of the RBI. RBI has instructed large-sized and systemically important UCBs to apply capital charge for market risk with effect from 1st April, 2010.

MERGERS AND ACQUISITIONS: A large number of international and domestic banks all over the world are engaged in merger and acquisition activities. One of the principal objectives behind the mergers and acquisitions in the banking sector is to reap the benefits of economies of scale. With the help of mergers and acquisitions in the banking sector, the banks can achieve significant growth in their operations and minimize their expenses to a considerable extent. Another important advantage behind this kind of merger is that in this process, competition is reduced because merger eliminates competitors from the banking industry. Through mergers and acquisitions in the banking sector, the banks look for strategic benefits in the banking sector. They also try to enhance their customer base. The mergers and acquisitions in the banking sector of India are overseen by the Reserve Bank of India (RBI). Following are some of the major mergers and acquisitions in the global and domestic banking sector: The merger of Chase Manhattan Corporation with J.P. Morgan & Company. The name of the new company formed as a result of the merger is J.P. Morgan Chase & Company. The merger of Firstar Corporation with U.S. Bancorp. The name of the resultant entity is U.S. Bancorp. The merger of Golden State Bancorp, Inc. with Citigroup Inc. The name of the newly formed company is Citigroup Inc The merger of FleetBoston Financial Corporation with Bank of America Corporation. The newly formed entity is Bank of America Corporation. Merger between IDBI (Industrial Development bank of India) and its own subsidiary IDBI Bank. The deal was worth $ 174.6 million (Rs. 7.6 billion in Indian currency). Centurion Bank and Bank of Punjab. Worth $82.1 million (Rs. 3.6 billion in Indian currency), this merger led to the creation of the Centurion Bank of Punjab with 235branches in different regions of India.

RELATED TERMS TO THE SECTORS There are several terminologies being used in day-to-day banking process. Following are the important terms used in BANKING SECTOR: BANK RATE REPO RATE REVERSE REPO RATE CASH RESERVE RATIO STATUTORY LIQUIDITY RATIO

BANK RATEBank Rate is the oldest instrument of monetary policy. It is the rate at which RBI lends money to other banks or financial institutions or commercial banks. In other words it is the rate of interest which is charged by RBI on its advances to commercial banks. If bank rate is increased by RBI, then all banks will also hike their own lending rates such as deposit rates and prime lending rates etc. The bank rate policy seeks to affect both the cost and availability of credit. Bank Rate is the rate at which central bank of the country (in India it is RBI) allows finance to commercial banks. Bank Rate is a tool, which central bank uses for short-term purposes. Any upward revision in Bank Rate by central bank is an indication that banks should also increase deposit rates as well as Prime Lending Rate. This any revision in the Bank rate indicates could mean more or less interest on your deposits and also an increase or decrease in your EMI REPO RATERepo rate is the rate at which our banks borrow rupees from RBI. Whenever the banks have any shortage of funds they can borrow it from RBI. A reduction in the repo rate will help banks to get money at a cheaper rate. When the repo rate increases, borrowing from RBI becomes more expensive. Under repo transaction the borrower places with the lender certain acceptable

securities against funds received and agree to reverse this transaction on a predetermined future date at agreed interest cost. It is known as repurchase rate. Therefore, we can say that in case, RBI wants to make it more expensive for the banks to borrow money, it increases the repo rate; similarly, if it wants to make it cheaper for banks to borrow money, it reduces the repo rate. If increases the repo rate it will increase general interest rates throughout the economy. If the repo rate for commercial banks increases they will pass this onto their own consumers. Higher interest rates have the effect of reducing spending, investment and economic growth. This will reduce inflationary pressures in the economy. CASH RESERVE RATIOThe Reserve Bank of India (Amendment) Bill, 2006 has been enacted and has come into force with its gazette notification. Consequent upon amendment to sub-Section 42(1), the Reserve Bank, having regard to the needs of securing the monetary stability in the country, can prescribe Cash Reserve Ratio (CRR) for scheduled banks without any floor rate or ceiling rate. [Before the enactment of this amendment, in terms of Section 42(1) of the RBI Act, the Reserve Bank could prescribe CRR for scheduled banks between 3 per cent and 20 per cent of total of their demand and time liabilities]. RBI uses CRR either to drain excess liquidity or to release funds needed for the economy from time to time. Increase in CRR means that banks have less funds available and money is sucked out of circulation. Thus we can say that this serves duel purposes i.e. it not only ensures that a portion of bank deposits is totally risk-free, but also enables RBI to control liquidity in the system, and thereby, inflation by tying the hands of the banks in lending money. What is CRR (For Non Bankers): CRR means Cash Reserve Ratio. Banks in India are required to hold a certain proportion of their deposits in the form of cash. However, actually Banks dont hold these as cash with themselves, but deposit such case with Reserve Bank of India (RBI) / currency chests, which is considered as equivalent to holding cash with themselves.. This minimum ratio (that is the part of the total deposits to be held as cash) is stipulated by the RBI and is known as the CRR or Cash Reserve Ratio. Thus, when a banks deposits increase by Rs100, and if the cash reserve ratio is 9%, the banks will have to hold additional Rs 9 with RBI and Bank will be able to use only Rs 91 for investments and lending /

credit purpose. Therefore, higher the ratio (i.e. CRR), the lower is the amount that banks will be able to use for lending and investment. This power of RBI to reduce the lendable amount by increasing the CRR makes it an instrument in the hands of a central bank through which it can control the amount that banks lend. Thus, it is a tool used by RBI to control liquidity in the banking system.

STATUTORY LIQUIDITY RATIO Statutory Liquidity Ratio refers to the amount that the commercial banks require to maintain in the form of cash, or gold or govt. approved securities before providing credit to the customers. Here by approved securities we mean, bond and shares of different

companies. Statutory Liquidity Ratio is determined and maintained by the Reserve Bank of India in order to control the expansion of bank credit. It is determined as percentage of total demand and percentage of time liabilities. Time Liabilities refer to the liabilities, which the commercial banks are liable to pay to the customers on there anytime demand. it is used by bankers and indicates the minimum percentage of deposits that the bank has to maintain in form of gold, cash or other approved securities. Thus, we can say that it is ratio of cash and some other approved liabilities (deposits).It regulates the credit growth in India The liabilities that the banks are liable to pay within one month's time, due to completion of maturity period, are also considered as time liabilities. The maximum limit of SLR is 40% and minimum limit of SLR is 23%.In India, Reserve Bank of India always determines the percentage of Statutory Liquidity Ratio. There are some statutory requirements for temporarily placing the money in Government Bonds. Following this requirement, Reserve Bank of India fixes the level of Statutory Liquidity Ratio. At present, the minimum limit of Statutory Liquidity Ratio that can be set by the Reserve Bank is 23% AS ON AUGUST 2012 Objectives of SLR: The main objectives for maintaining the Statutory Liquidity Ratio are the following: Statutory Liquidity Ratio is maintained in order to control the expansion of Bank Credit. By changing the level of Statutory Liquidity Ratio, Reserve bank of India can increase or decrease bank credit expansion. Statutory Liquidity Ratio in a way ensures the solvency of commercial banks. By determining

Statutory Liquidity Ratio, Reserve Bank of India, in a way, compels the commercial banks to invest in government securities like government bonds. If any Indian Bank fails to maintain the required level of Statutory Liquidity Ratio, then it becomes liable to pay penalty to Reserve Bank of India. The defaulter bank pays penal interest at the rate of 3% per annum above the Bank Rate, on the shortfall amount for that particular day. But, according to the Circular, released by the Department of Banking Operations and Development, Reserve Bank of India; if the defaulter bank continues to default on the next working day, then the rate of penal interest can be increased to 5% per annum above the Bank Rate. This restriction is imposed by RBI on banks to make funds available to customers on demand as soon as possible. Gold and Government Securities (or Gilts) are included along with cash because they are highly liquid and safe assets.

TERMINOLOGY Bank Rate Repo Rate Reverse Repo rate Cash Reserve Ratio(CRR) Statutory Liquidity Ratio

RATE 9.00% 8.00% 7.00% 4.75% 23.00%

W.E.F. 17/04/2012 17/04/2012 17/04/2012 10/03/2012 11/08/2012



The Bank has a very humble but a very inspiring beginning. On 14th September 1918, The Saraswat Co-operative Banking Society" was founded. Mr. J.K. Parulkar became its first

Chairman, Mr. N.B. Thakur, the first Vice-Chairman, Mr. P.N. Warde, the first Secretary and Mr. Shivram Gopal Rajadhyaksha, the first Treasurer. These were the people with deep and abiding ideals, faith, vision, optimism and entrepreneurial skills. These dedicated men in charge of the Society had a commendable sense of service and duty imbibed in them. Even today, our honorable founders inspire a sense of awe and respect in the Bank and amongst the shareholders.

The Society was initially set up to help families in distress. Its objective was to provide temporary accommodation to its members in eventualities such as weddings of dependent members of the family, repayment of debt and expenses of medical treatment etc. The Society was converted into a full-fledged Urban Co-operative Bank in the year 1933.

The Bank has the unique distinction of being a witness to History. The Bank, which was originally founded in 1918, i.e. close on the heels of the Russian Revolution, also witnessed as a Society and as Bank-the First World War, the Second World War, India's freedom Movement and the glorious chapter of post-independence India. During this cataclysmic cavalcade of history, the Bank as a financial institution and its members could not of course remain unaffected by the economic consequences of the major events. The two wars in particular brought in their wake, paucities of all kinds and realities and stand by its members in distress as a solid bulwark of strength. The Founder Members and the later-day management's of the Bank continued to

demonstrate their unwavering faith in the destiny of the common man and the co-operative movement and they encouraged the shareholders to save despite all odds. Last two decades the Bank has witnessed a steady growth in the business and also taken several Strategic Business Initiatives like undertaking Business Process Reengineering initiative. Merging seven coop Banks and then consciously nurturing them. Bank tied up with VISA

international for issuance of Debit Card. The Bank has a network of 226 fully computerized branches as on 31st-Mar-2012 covering six states viz. Maharashtra, Gujarat, Madhya Pradesh, Karnataka, Goa and Delhi. The Bank is providing 24- hour service through ATM at 147 locations. As on 31st March, 2012 Bank business had surpassed Rs 33000 Crores. Bank has retained its coveted position as ZERO NET NPA Bank for the eighth successive year. In 2011 Bank was granted permission for All India Area of Operation by Reserve Bank of India. Bank has an an ambitious business expansion plan in place to have a presence in all major cities of the country, reach a business level of Rs 50000 Crores by 2016 and Rs 100000 by 2018.


Total Business
(Rs in crores)
30000 25000 20000 15295.4 15000 10000 5000 0 2007 2008 2009 2010 2011 18879.13 23517.08 21029.26 27312.95

Working Funds Rs in crores

25000 20000 15000 10745.47 10000 5000 0 2007 2008 2009 2010 2011 13874.1 15622.82 19186.27 17071.06

Own Funds
1600 1400 1200 1000 800 600 400 200 0 2007 2008 2009 2010 2011 1042.4 1130.95 1174.24 1270.37 1473.49

18000 16000 14000 12000 10000 8000 6000 4000 2000 0 2007 2008 2009 2010 2011 8924.94 11430.82 12918.85 14266.73 15800.96

14000 12000 10000 8000 6000 4000 2000 0 2007 2008 2009 2010 2011 7448.31 6370.46 8110.41 9250.35 11511.99

SWOT ANALYSIS: SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieve that objective. The technique is credited to Albert Humphrey, who led a convention at Stanford University in the 1960sand 1970s using data from Fortune 500 companies. STRENGTH: It specifies the attributes of the person or company that are helpful to achieve the objective(s). Saraswat Bank is No. 1 amongst the 1,700 UCBs in the Urban Cooperative Banking Sector in India with over 90 years of cumulative banking experience. High standard regulatory environment. Flexible work permit system and good quality staff offering personal client service. Bank has implemented Core Banking Solution (CBS) in the Bank. This solution primarily aims at having a unified customer approach. Bank is a member of the Credit Information Bureau India Ltd. (CIBIL). CIBIL is Indias first credit information bureau and is a repository of factual information on the credit history and repayment records of millions of commercial and individual borrowers. OPPORTUNITY: external conditions that are helpful to achieving the objective(s). Maharashtra State has a huge banking business market of around Rs. 17,00,000/- crore. Of these Rs. 17,00,000 crore, Saraswat Bank has a business stake of only Rs. 20,000 crore, which is a miniscule of merely 1.2% share in the total banking business in the State of Maharashtra. This provides a huge opportunity to the bank. Saraswat Bank does 0.3% to 0.4% of the nations banking business. In India today, 60%of the population do not have access to a banking product; 80% of the population do not have access to an insurance product and 98% of the population do not have access to

a stock market product. Thus, there is tremendous untapped growth potential in the Indian subcontinent

WEAKNESS: Refusal to dilute stake in PSU banks: The government has refused to dilute its stake in PSU banks below 51% thus choking the headroom available to these banks for raining equity capital. Lack of competitive differential with other offshore centres Rigid legislation that inhibits business development

THREAT: Rise in inflation figures which would lead to increase in interest rates. Increase in the number of foreign players would pose a threat to the PSB as well as the private players. Anti-offshore regulations in foreign target markets restricting the development of products and new markets. Downsizing and reduction in banking operations in favour of rival jurisdictions. Outsourcing to cheaper jurisdictions Subsequent impact on rest of finance sector ecosystem

FINANCIAL ANALYSIS AND STRATEGIES: Financial Accounting is a process of systematic recording of business transactions in the various books accounts maintained by organization with the ultimate intention of preparing financial statements there from. Financial accounting ultimately aims at preparing financial statements which are basically in two forms: Profit and loss statement is a period statement and related to curtained period, usually one year. This tells about the results of operations, either profit or loss, arising out of the conduct of business operations during that period Balance sheet which is a potion statement and relates to a particular point of time. This tells about the various properties held by the business (termed as Assets) and obligations accepted by the business (termed as Liabilities) as on particular date. Balance Sheet: The purpose of preparing the balance sheet is to disclose financial status of an organization in the form of assets and liabilities at a given point of time. Liabilities: Credits balances in all the personal and real accounts appear on liabilities side. The following items may appear on the liabilities side: Capital: Capital Indicates the amount of funds contributes by the owner of business to requirement of fund of business. Similarly, any amount of profit earned in past which is not distributed to the owner also belongs to owner and become a part of the business. Long term liabilities: This indicates the liabilities which are to be paid off over long period of span of time say 5 to 10 years. In practical circumstances, it may consists of long-term loan borrowed from a bank and financial institutes. Currents liabilities: This indicates the liabilities which are suppose to be paid off which a very short span of time say one year. In practical circumstances, it consist

Sundry creditors, Advances received from customer, Outstanding expenses, Income received in advanced, Liability taxes.

Assets: Debit balances in all the personal and real accounts appear on assets side. Following items may appear on assets side: Fixed assets: Fixed assets indicate the value of infrastructure properties acquired by the business where the benefit received over long period of time. Fixed assets are land, building, machinery, furniture vehicles, and computer. Investments: This indicates the amounts of funds invested by the organization outside the business. Current assets: Current assets are the assets which are likely to be converted in the form of cash of likely to be consumed during the normal operating cycle of a business within a very short span time say one year. Current assets are stocks, sundry debtors, cash & bank balances, prepaid expenses.


(Amount in Rs) CAPITAL & LIABILITIES 1) CAPITAL 2) RESERVE FUND & OTHER RESERVES 3) DEPOSITS & OTHER ACCOUNTS 4) BORROWINGS 5) BILLS FOR COLLECTION 6) BRANCH ADJUSTMENTS 7) OVERDUE INTEREST RESERVE I. II. ON INVESTMENTS ON LOANS & ADVANCES 8) INTEREST PAYABLE 9) OTHER LIABILITIES 10) PROFIT & LOSS GRAND TOTAL Contingent Liabilities 13 5 6 86,56,644.00 1,35,32,79,974.37 46,47,62,566.51 8,48,72,72,442.32 2,12,59,98,810.80 211,50,10,24,701.70 15,63,74,41,052 86,56,644 1,51,26,21,884 49,93,00,234 7,51,27,72,392 1,21,73,25,875 189,94,77,36,498 15,50,03,29,595 3 4 1,58,00,96,07,293.84 8,45,61,53,945.78 15,05,61,88,896.43 4,64,05,350.95 1,42,66,72,86,137 5,62,00,09,609 14,40,59,01,784 11,48,47,457 Schedule 1 2 31.03.2011 1,02,83,24,160.00 16,46,43,74,616.70 31.03.2010 86,23,11,100 15,52,67,03,382

(Amount in Rs) PROPERTY & ASSETS 1) CASH 2) BALANCES WITH OTHER BANKS 3) MONEY AT CALL & SHORT NOTICE 4) INVESTMENTS 5) ADVANCES 6) INTEREST RECEIVABLE 9 10 52,53,76,68,612.60 1,15,11,99,23,393.74 1,35,32,79,974.37 53,21,39,11,321 92,50,35,46,892 1,51,26,21,884 34,64,22,562.00 1,31,84,56,314 Schedule 7 8 31.03.2011 11,03,74,27,758.63 2,26,29,21,605.29 31.03.2010 10,00,16,55,468 4,38,24,29,025


15,05,61,88,896.43 5,45,73,77,098.58 8,29,64,60,223.62 62,000.02 3,10,14,176.42

14,40,59,01,784 5,51,06,28,226 7,05,70,97,868 1,90,000 3,90,19,314





Profit and Loss accounts: A profit and Loss account is prepared to disclose the results of operation of the business transaction during certain duration of time. Accounts may have following four components: Manufacturing accounts: This part of profit and loss accounts discloses the results of manufacturing operations carried out by the organization. The final result in terms of manufacturing accounts is a cost of production incurred by the organization. Trading accounts: This part of profit and loss accounts discloses the results of trading operations carried by organization. The final results in terms of Gross Profit earned by the organization. Profit and Loss accounts: This part of profit and loss accounts discloses the final results of business transactions of the organization. The final results in terms of Net profit earned by organization. Profit and Loss appropriation accounts: This part of profit and loss accounts which mainly applicable to company form of organization, discloses the manner in which the net profit earned by the organization is appropriated. The amounts of profit not appropriated or retained transferred to reserves and surplus in balances sheet.

Table A (`in Crore)


FOR THE YEAR ENDED 31-Mar-10 31-Mar-11 Total Income 1,458.20 1,690.86 Total Expenditure 1,242.36 1,332.67 Gross Profit 215.84 358.19 Less: Provisions 36.68 63.39 Net Profit Before Tax and Exceptional Items 179.16 294.80 Less: Income 40.00 81.23 Net Profit After Tax and Exceptional Items 139.16 213.57 Less: Exceptional Items 19.49 1.30 Net Profit 119.67 212.27 AT THE YEAR END Own Funds 1,270.37 1,473.49 Share Capital 86.23 102.83 Reserves and Surplus 1,184.14 1,370.66 Deposits 14,266.73 15,800.96 Current 1,244.30 1,050.94 Savings 3,003.37 3,513.15 Term 10,019.06 11,236.87 Advances 9,250.35 11,511.99 Secured 9,151.61 11,433.19 Unsecured 98.74 78.80 Priority Sector 5,300.48 5,765.90 % to Advances 57.30% 50.09% Small Scale Industries 2,946.54 2,443.75 Small Businessmen and Traders 689.47 526.94 Other Priority Sectors 1,664.47 2,795.21 Working Capital 17,071.06 19,186.27 Investments 5,321.39 5,253.77 Borrowing And Refinance 562.00 845.62 Net NPAs (%) 0.00 0.00 Capital Adequacy (%) 14.63 12.74 Number of Members Regular * 1,34,417 1,62,560 Nominal 4,94,292 5,26,331 Number of Branch Licences/Branches 200 216 Number of Employees 2,911 3,338 Productivity per Employees 8.08 8.18 Profit Per Employes (in laces) 4.11 6.36 Return on Average Assets (%) 0.74 1.16 Net Interest Margin (%) 2.61 3.52

% Change 15.96% 7.27% 65.95% 72.82% 64.55% 103.08% 53.47% -93.33% 77.38% 15.99% 19.25% 15.75% 10.75% -15.54% 16.97% 12.15% 24.45% 24.93% -20.19% 8.78% -17.06% -23.57% 67.93% 12.39% -1.27% 50.47% 0.00

Maximizing CASA deposits: A sharp focus on reduction in costs has become priority No. 1 in your Bank. On the liability side, the cost advantage will be available to your Bank, only if the Bank makes rapid strides in mobilization of Current Accounts and Savings Accounts (CASA). Major banks in the country have around 35% to 45% CASA deposits, while your bank has been hitting only the 22% to 30% range in CASA deposits. As CASA deposits carry an average low level of interest, the average cost of funds (i.e. CASA Deposits + Term Deposits)comes down. We have repeatedly impressed on our staff the need to mobilize CASA deposits aggressively. Reduction in NPA: To bring down the Gross NPA level as also to ensure that substantial new NPAs are notadded, branches were asked to speed up efforts for recovery in respect of overdue accounts with them. The drive for reduction in NPAs has been hugely successful under the leadership of Sheri P. G. Kamath, Chief General Manager. Marketing: Business Process Reengineering (BPR) initiative primary objective of this initiative is to convert the branches into sales and service outfits. India is a huge banking market but The penetration of Indian Banking is thus one of the lowest in the world. Also a large number of our branches are functional in Maharashtra State, which has a huge banking business market of around Rs. 17,00,000/- crore (with aggregate bank deposits of Rs. 8,57,771 croreand gross credit of Rs. 8,34,701 crore in September 2008). Of these Rs. 17,00,000 crore,we at Saraswat Bank have a business stake of only Rs. 20,000 crore, which is a minisculeof merely 1.2% share in the total banking business in the State of Maharashtra. This provides a huge opportunity to banks including your Bank. In fact, it is on the basis of these statistics that we have planned to do a business of Rs.1,00,000 crore by 2021 under Dr. Adarkar Mission IV of your Bank. All the

employees in the branches are being trained, equipped and instructed to take extra efforts for marketing all the products and services of your Bank

4 Ps OF MARKETING: Basically, the concept of Marketing is given by McCarthy who has classified Marketing Mix tools of four broad kinds called 4 P's and they are as follows Product Price Promotion Place These marketing mix tools are used by the marketers to influence their trade channels and final consumers. The Saraswat co-operative banks 4P's criteria is followed below 1) Product Sarswat co-operative bank is No. 1 amongst the 1,700 UCBs in the Urban Co-operative Banking Sector in India. The fact remains that we do 0.3% to 0.4% to nation's banking business. A Sarswat Co-operative Bank has special Product Development Department which is been seen by Sheri M.S.Vaidya, Dy.General Manager. The product Development department has initiated into all these areas Products and their attributes. Unique Selling Propositions of our Products. Marketing positions of our products. Promotional imperatives. Value addition ingredients of our products and their enrichment.

This helps the bank to process of redefining and refashioning our existing products and creating new products. This helps to maintain relationships i.e. helps to maintain CMR

2) Place The bank has adopted the policies of inorganic growth since 2006 for increasing its branch outlets From 2009 the bank has been pursuing a mix of inorganic and organic growth for branch expansion purposes. The bank has adopted the cluster based approach . Instead of having an isolated branch, they have 4-5 branches in a far off area. This approach has enabled the bank to cluster presence in western Maharashtra, Goa and Karnataka. The bank has planned under Dr.Adarkar Mission 2, to open 70 more branches by 31stMarch,2011 The is following the mantra of one branch in every 15 days in programme called 'Ashwamedh' 3) Promotion Promotion of any brand is very necessary; this helps the marketer as well as customer to understand each other well. The Sarswat Co-operative bank has appointed Sheri Dilip Prabhavalkar, veteran artist as their Brand Ambassador This has heed the bank to achieve and promote heights of success in their business To attract the young generation the bank has appointed a junior brand ambassador to Ms.Shalmali Sukthankar, budding artist. From last five years the bank has encapsulated and expressed our uniqueness to the customers that the bank is having the "Ability of the Big and Agility of the Small" 4) Pricing

In any service industry, cost leadership is critical to the long term success of the organization. The bank has to compete with other banks on the basis of total reduction of all economic and unwarranted expenditures and also to control costs in all areas The bank initiatives are as follows Optimum utilization of the available resources of he bank. Streamlining/Re-engineering various procedures in the bank, thus improving customer service. The bank has sustained work of the income and cost council, which helps the bank to offer services to the customers with lower intermediations costs.

HR POLICY AND ORGANIZATIONAL STRUCTURE: Internal Capability Building Measures (ICBMs): The bank pursued the recruitment and promotional policy during the year 2008-2009 as per Internal Capability Building Measures (ICBM).

Promotional Exercise The Bank had undertaken promotional exercise in the year 2002 when organizational restructuring was done as per the recommendations of M/s Seven S Associates. The Bank has been undertaking expansion of branch network and has been implementing BPR exercise too, which is resulting in transforming the organization. In order to cater to the growing expanse of the Bank and the need for managerial positions in the wake of the same, a promotional exercise to various cadres was conducted. A total of 385 employees were promoted to various cadres. All promoted personnel have been suitably deployed at various branches (including the branches of the merged banks) and/or departments.

Training During the FY 2008-09, a total of 2,225 employees, consisting of 1,058 from management and 1,167 from non-management cadre attended 98 training programmes conducted at the Staff Learning Centre at Vashi, Navi Mumbai, as well as at various branch locations. A special emphasis was given on training of new recruits and employees of erstwhile banks merged with this Bank at their respective locations as well as at the Staff Learning Centre at Vashi, where the focus was on validation process, know the Bank, the internal software package OMNI and the retail products of the bank.

Customer Service The bank has adopted the following codes based on the Standard codes documented byIndian Banks Association: Customer Fair Practice Code Cheque Collection Code Bankers Lender Liability Code Compensation Policy Saraswat Bank has become a member of the Banking Codes and Standards Board of India. This board ensures that the Codes so defined by the Bank are implemented in letter and spirit. For measuring customer satisfaction, a bank- wide Customer Service Audit has been planned to be commissioned by the Board in the ensuing year. Industrial Relation:

The Banks human resources have been organized under the two representative bodies viz. the Officers Association and the Employees Union. The industrial relations with both these

organizations have been very cordial with joint discussions being held with the Association/the Union for redressing employee issues in an amicable way. Voluntary Retirement Scheme (VRS):

This year, the Bank launched the VRS for its employees. Around 236 employees from your Bank (excluding those of merged banks) opted for VRS under the said scheme. Besides, 83employees of the erstwhile Nasik Peoples Cooperative Bank Ltd., 43 employees of erstwhile Annasaheb Karale Janata Sahakari Bank Ltd. and at around 100 employees of the erstwhile Murgharajendra Sahakari Bank Ltd. (i.e. in all 462 employees) opted for VRSand have been relieved under the Schemes. The Bank acknowledges with gratitude the sincerity and hard work put in by all these employees during their tenure with the Bank and wishes the retired employees an eventful and healthy post retirement life.

CSR (CORPORATE SOCIAL RESPONSIBILITIES): Corporate Social Responsibility (CSR) is not a new fashion but it is an old creed for this organization. The founders and their successors understood and underscored the principle that a cooperative institution must always stay connected with the needs and aspirations of the society at large and hence CSR constitutes the umbilical cord that connects this bank to the society. The laudable gesture of late Wamanrao Varde and his associates on the Board then in spontaneously responding to the grave scarcity of foodgrains during the Second World War and in starting on behalf of your Bank a ration shop at Girgaum in Mumbai to make available food grains to all, is a resplendent example of the early awareness of CSR in this Bank. This was so because all members of the community always understood that a co-operative institution must always have a social purpose. Bank thereafter also started scholarships and apprenticeships for deserving students and through that process built the careers of several young men. Your Bank has been providing financial assistance to many social, educational and medical institutions by

way of grants every year from its funds. From time to time the Board of Directors responded to national and natural calamities like flood, famine, earthquake etc. Following are the few initiatives both at macro and micro level, which spell out the banks vision of Corporate Social Responsibility (CSR): As a macro level expression of CSR, we in association with Maharashtra Times created an intellectual platform entitled "Shikhar Maharashtra" .with the objective of researching into, debating and finding ways and means to deal with the many stubborn economic and social issues that Maharashtra faces today. A gala opening of Shikhar Maharashtra was held on27th July 2007 at Ravindra Natya Mandir, Mumbai. The programmes went on for two days wherein the social and political leaders from Centre and State participated. The inauguration of this forum of 'Shikhar Maharashtra" will pave the way for bringing to the table the daunting problems that our State faces today. It is proposed that at an interval of every three months, a major issue facing Maharashtra such as farmers' suicides, malnutrition, scarcity of drinking water, famine and hunger, etc. is discussed threadbare on this nonpartisan platform by soliciting the participation of intellectuals and social workers who are active in the field and thereafter recommendations are made to the Government on the remedies that may ameliorate the situation and pursued thereafter. As part of CSR, at the macro-level the Board of Directors took serious cognizance of the plight of farming community and continuing suicides of farmers and with a view to instilling hope among farmers, they supported the 'Project Hope' of late Baba Amte'sMaharogi Sewa Samiti at village Mulgavan, Taluka - Jhari Jamini, Distt. Yeotmal. A substantial donation of Rs. 1.00 crore was made towards this project, where experts and volunteers are engaged in offering hope and succor to thousands of farmers by building check dams and initiating farmers into newer cultivation practices enabling them to bolster income generation and income supplementation. At the macro-level, the third major issue that the Board of Directors took was one belonging to the home turf viz. the 5,90,619 small depositors losing their hard earned money which they had kept in deposits in urban co-operative banks. It is here that the bank stepped in, assimilated five ailing UCBs in our Bank, resurrected all the deposits of all the depositors and even restored those banks back to pristine health. Along with such macro issues, the Bank has extended support in

specific cases by way of action at micro-level, which would prove inspirational for others. Some of these commendable acts in CSR are as under:

Bank's contribution towards protecting cultural lineage of Maharashtra: The bank sanctioned a sponsorship grant of Rs. 25 lakh for the RSS volunteers working for the project "Shilpkaar Charitra Kosh". This project deals with the publication "Vivek", engaged in bringing out chronicles on the lives of great men of all walks of life who have contributed to make Maharashtra what it is today Late Annabhau Sathe was a peoples' poet-singer of Maharashtra. Some nine months ago, the pitiable plight of his entire family living in indigence was depicted in newspapers. The Bank's representative rushed to Sangli and in order to provide sustenance to the family.

Employment to deserving kith and kin of deprived section of society: Sheri Nitin RajhansBagwe - son of a mill-worker was born as a dwarf and after reaching manhood reached a height of barely three feet. It was with the help of surgeries that his height was artificially pulled up to four and half feet. With sheer determination he completed his education in commerce and also cultivated the hobby of photography. Recognition of sheer Grit and Bravery: Sheri Gorakh Newale, a Municipal worker at Chinchwad in Pune was injured while saving the lives of many people from a tiger, which had entered human habitat. Sheri Mohan Pandurang Redkar an engineer by profession hailing from Malwan taluka wasin Mumbai for his mother's treatment. While in Mumbai, he was going by the Bandraseashore to a medical shop to bring medicines for his mother. At the seashore, he happened to see two couples drowning in the sea and he leapt to their rescue. While he saved all the four lives, unfortunately he was drowned in the process. The news reports appearing next day saddened every one. His family at Malvan in Sindhudurg District was drowned in sorrow Bank salutes the Martyrs: In the recent terrorists attack on Mumbai , the first and hopefully the last of its kind, many brave soldiers laid their life for the security of the country.Amongst them were Sheri Tukaram Ombale, Shri.Balasaheb Bhosale, Shri Arun Chitte,ShriMurlidhar Choudhari and Shri Ambadas Ramchandra Pawar. In recognition of their services Saraswat Bank appointed Next of Kin of these brave soldiers in the services of

the Bank. Shri Ajit Gawkar , brave Indian soldier died while fighting intruders/enemies on the Jammu and Kashmir Border. In recognition of his services to the country, Saraswat Bank appointed his wife in the services of the Bank on the occasion of 61st Independence Day. Ms Krishna Patil the third woman to successfully complete the Mt. Everest Expedition, was granted loan waiver for Rs 30 lakhs in recognition of her bravery, grit, determination and never die enthusiasm

AWARDS AND RECOGNITIONS: Bank participated in the study conducted jointly by the Great Places to Work Institute India and the Economic Times, to distinguish a good work place from a great one. Based on the study of over 373 participants spanning a multitude of sectors, the top 50 best workplaces were elected. We are happy to announce that your Bank has been adjudged and included in Indias Best Companies to work for - Year 2009" and in the banking industry vertical, your Bank is placed fourth after American Express, Kotak Mahindra Bank and HDFC Ltd. The citation reads as under: The Saraswat Co-operative Bank Ltd. Ranked 4th in Banking& Credit Services for inspiring trust among your people, for instilling pride in them, for creating an Environment within the workplace that promotes camaraderie and for many other reasons that makes your organization one of the Indias.

CONCLUSION AND SUGGESTIONS: The market is seeing discontinuous growth driven by new products and services that include opportunities in credit cards, consumer finance and wealth management on there tail side, and in fee-based income and investment banking on the wholesale banking side. Given the demographic shifts resulting from changes in age profile and household income, consumers will increasingly demand enhanced institutional capabilities and service levels from banks. With the growth in the Indian economy expected to be strong for quite sometimeespecially in its services sector-the demand for banking services, especially retail banking, mortgages and investment services are expected to be on rise. Reserve Bank of India (RBI) has approved a proposal from the government to amend the Banking Regulation Act to permit banks to trade in commodities and commodity derivatives.

SUGGESIONS In wake of this, old private sector banks also have the need to fundamentally strengthen skill levels. However, even more imperative is their need to examine their participation in the Indian banking sector and their ability to remain independent in the light of the discontinuities in the sector. Accelerate the creation of world class supporting infrastructure (e.g., payments, asset reconstruction companies (ARCs), credit bureaus, back-office utilities) to help the banking sector focus on core activities. Slower growth in retail credit and narrow spreads spells better fortune for banks that have higher concentration of corporate assets and low cost deposits along with good asset quality. Saraswat Bank perfectly fits into this matrix. Sustenance of a healthy current and savings account mix and little deterioration in asset quality also reiterates the operating efficiency of the bank. Being the largest Urban Co-operative bank, Saraswat Bank is also one of the lead contenders to initiate the process of building up scalability by acquiring smaller banks in the PSU and private sectors. Besides offering the opportunity to cater to borrowing needs of some of the largest corporate in the country, the consolidation process will also brings about economies of scale for the bank . The banking today is re-defined Andre-engineered with the use of Information Technology and it is sure that the future of banking will offer more sophisticated services to the customers with the continuous product and process innovations . Thus, there is a paradigm shift from the sellers market to buyers market in the industry and finally it affected at the bankers level to change their approach from conventional banking to convenience banking and mass banking to class banking. The shift has also

increased the degree of accessibility of a common man to bank for his variety of needs and requirements. Also, the banks healthy ROA (Return of Average Asset) and CRAR (Capital to Risk Asset Ratio) is a matter of comfort. Having said that, the banks market share of merely 1.2% in the total banking business in the State of Maharashtra is our lingering concern. We have a positive view on the bank with respect to its future growth prospects.

BIBLIOGRAPHY 1.History of Banking in India: m/downloads/BankingSector.pdf

2.Banking terminology:

3.Mergers and Acquisitions:

4.Current position and financial analysis of the bank: Saraswat Banks Annual Report for the year 2008 and 2009

5.History of the banks and Corporate Social Responsibilities: