BANK OF MAHARASHTRA (BOM)

Bank of Maharashtra was registered on 16

th
September 1935 and commenced operations onFebruary 1936 in Pune. It was in 1944,
when BOM obtained the status of schedule bank inwhich RBI gives the status of schedule
bank to those whose paid capital and collected fundsof bank are not less than Rs. 5
lac and banks activity should not adversely affect the interestsof depositors. Every
schedule bank enjoys the eligibility for debts/loans on bank rate from theRBI and
acquires the membership of clearing house.Some of the milestones for bank are:
y

1996:
BOM obtained autonomy and moved into A category from the earlier Ccategory.
y

2000
:
Deposits crossed Rs 10,000 crore marks.
y

2004
:
Initial public offer (IPO) launched and public owned 24% share of BOM.
y

2005
:
Bank diversified its business with launch of Bancassurance (an insurance)
&mutual fund distribution.
y

200
6:
Total business crossed Rs 50, 000 crore and implementation of core bankingSolution (CBS)
in branch started.
y

20
1
0
:

completion of CBS project with all branch covered under CBS. Same timetotal business
crossed Rs one lakh crore.
Outlook of Bank of Maharashtra
1.

Business
:

BOM registered a year on year growth of 19.71 % and hence total business stood
atRs 1, 04,230 crore from Rs 87, 072 crore which was on 31
st
march 2009.
2
.

D
eposits
:
Total deposits increased from Rs 52,255 crore to Rs 63,304 in 2010 a rise by 21.14 %.The
share of CASA( current account and saving account) share was 36.91 %.
Thisdeposits are considered low cost deposits as for current account bank pay no
interestand for saving its very minimal compared to fixed deposits, where avg.
interest ismore than 6-7%
The banking system is indispensable in the modern society. It plays a key role in
thee c o n o mi c d e v e l o p me n t a n d f o r ms t h e c o r e o f t h e mo n e y ma r k e t
i n a n a d v a n c e d e c o n o my. R e a l i z i n g t h e c r u c i a l r o l e o f t h e b a n k s i
n t h e n a t i o n a l e c o n o my. T h e Government of India nationalized fourteen
major commercial banks in July.1969 andsix 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 inthe 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 tothe 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 thecountry mobilizing resources wherever they may
be, and channelizing them
towards productive purposes. The role of the public sector banks in India is all the
moreenhanced 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 thenationalized 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 Sec
tor Reforms. All the nationalized banks incurred a net loss during the year 1992-
93. Theaggregate net loss of the nationalized banks came to Rs.3,64, 292 lakhs
and Rs.3,44.664lakhs during 1992-93 and 1993-94 respectively. Syndicate Bank,
a bank that performedunusually well during the pre-nationalization and early post-
nationalization periods and37
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 leastp e r f o r mi n g b a n k n e x t t o N ew B a n k o f

India.
T h e s t u d y r e v e a l s t h e o v e r a l l 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 itsdismal picture in all round
performance. Except f-or the two parameters, 'growth'
and' p r o d u c t i v i t y ' , t h e B a n k ' s p e r f o r m a n c e i n a l l t h e o t h e r p a
r a m e t e r s a r e r e a l l y uncomfortable. When compared to Syndicate Ban
k fourteen banks fared better inoverall performance as indicated by their
Composite Performance Score (CPS). Onlyfour 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 PerformanceScore of the
individual nationalized banks including that of Bank of Maharashtra
iscapable of showing improvement if the banks take earnest efforts to
enhance their performance in the vital areas viz, internal management, asset
management, technologyup 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.
BIBLIOGRAPHY
38

B a n k i n g : Th e Ne t wo r k i s t h e b a n k , b y Yo g e s h S h a r ma , D a t a q u e
s t , 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

FinanceGroup at IIM Lucknow).
Web-sites:
http://www.bankofmaharashtra.in/aboutus.asphttp://www.bankofmaharashtra.in/chairman.asph
ttp://www.bankofmaharashtra.in/bod.asphttp://www.bankofmaharashtra.in/profile.asphttp://ww
w.bankofmaharashtra.in/financials.asphttp://www.bankofmaharashtra.in/financials.asp#reportht
tp://www.bankofmaharashtra.in/jv.asp#magicmoneyhttp://www.bankofmaharashtra.in/credit_f
ac_edu.asphttp://acts.cdacindia.com/actsonline/Website/Html_asp/Homepg/crsbroloan.asphttp:
//www.ficciagroindia.com/funding-schemes/bank/maharashtrabank.htm39