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Acknowledgement

If words are considered to be signs of gratitude then let these words convey the very same our sincere gratitude to bank of Maharashtra for giving necessary directions on doing this project to the best of our abilities. We are highly indebted to Mr. Pradeep Mishra, Manager Economist planning department, & Mrs. Neeta Shewade, Marketing manager who provided us with the necessary information and also for the support extended out to us in the completion of this report and his valuable suggestion and comments on bringing out this report in the best way possible. We also thank Prof. Ajay Varade, Indira Institute of Management, who has sincerely supported me with the valuable insights into the completion of this project. We are grateful to all faculty members of IIMP and our seniors who have helped us in the successful completion of this project

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GROUP MEMBERS:
1. NEHA SHARMA 2. SUSHANT JANGALE 3. PRANABDEO MANGRULKAR 4. AMAY PAWAR 5. ANITA NERKAR 6. RASHI JAIN 7. VISHAL THAKUR 8. CHETAN MADHUP 9. BHUSHAN KELA 10. SONRAJ SINGH 11. AJAY GUPTA 12. AJINKYA YERUNKAR 13. KARTIK NAIR 14. ANKUR MEHTA 15. ANIRUDHA SHAHAPURKAR 16. AMIT GAIKWAD FACULTY MENTOR: GAYATRI KULKARNI STUDENT MENTOR: POOJA DESHMANE

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Macro analysis – banking sector analysis
1) History – Global & India

2) Market – structure

3) Major players

4) Legal issue

5) Current govt policies & impact

6) Significant events

7) Important concepts related to this sector

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Micro Analysis
1) Intro & history

2) Swot analysis

3) 7p’s

4) Analysis and Balance sheet

5) Key personal & hierarchy

6) Corporate social responsibility

7) Future plan

8) Suggestions & conclusions.

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and • collecting cheques for his customers. The definition of a bank varies from country to country. private enterprises. However. dealing directly with individuals and small businesses.  INTRODUCTION A bank is a financial institution licensed by a government. used during the Renaissance by Florentine bankers. Central banks are normally government-owned and charged with quasi-regulatory responsibilities. Business banking: Providing services to mid-market business. which is specified as • conducting current accounts for his customers • paying cheques drawn on him. corporate banking. or are non-profit organizations. However. They generally provide liquidity to the banking system and act as the lender of last resort in event of a crisis. Under English common law. such as supervising commercial banks. some are owned by government. The name bank is derived from the Italian word banco "desk/bench". Types of banks Banks' activities can be divided into retail banking. relating to activities on the financial markets. and investment banking. there are traces of banking activity even in ancient times. a banker is defined as a person who carries on the business of banking. directed at large business entities. Private banking: Providing wealth management services to high net worth individuals and families. 5    . or controlling the cash interest rate. who used to make their transactions above a desk covered by a green tablecloth. Most banks are profit-making.

S. Offshore banks: Banks located in jurisdictions with low taxation and regulation.Types of retail banks: National Bank of the Republic. Postal savings banks: Savings banks associated with national postal systems. whereas investment banks were limited to capital market activities. the U. some use the term "commercial bank" to refer to a bank or a division of a bank that mostly deals with deposits and loans from corporations or large businesses. Community Banks: Locally operated financial institutions that empower employees to make local decisions to serve their customers and the partners. Congress required that banks only engage in banking activities. Community development banks: Regulated banks that provide financial services and credit to under-served markets or populations. After the Great Depression. Since the two no longer have to be under separate ownership. 6    . Many offshore banks are essentially private banks. Private Banks: Banks that manage the assets of high net worth individuals. Salt Lake City 1908 Commercial bank: ATM AL RAJHI BANK The term used for a normal bank to distinguish it from an investment bank.

cross selling of various financial products and so on • While the bank is making a person as their customer due care has to be shown taking into consideration the latest provisions of KYC norms • A banker should be able to justify beyond doubt that his customer has become his customer after following all the procedures. Credit and other plastic cards • Accepting Electricity. savings banks take their roots in the 19th or sometimes even 18th century. providing local and regional outreach—and by their socially responsible approach to business and society. Their original objective was to provide easily accessible savings products to all strata of the population. credits and insurances for individuals or small and medium-sized enterprises. savings products. Dealing in Forex related transactions Offering Safe Deposit Locker facilities. Islamic banks: Banks that transact according to Islamic principles. Telephone bills . Nowadays. Ethical banks: Banks that prioritize the transparency of all operations and make only what they consider to be socially-responsible investments. they also differ from commercial banks by their broadly decentralized distribution network. Collection of instruments Executor Trustee services. European savings banks have kept their focus on retail banking: payments. norms and he has acted as a prudent banker. Secondary functions include opening of Letters of credit . In Japan. socially committed individuals created foundations to put in place the necessary infrastructure. Debit. in others. In some countries. and extending services on behalf of the Service providers • Bank assurance. Issuing Bank guarantees. accepting Safe custody articles and so on Oflate bankers offer other services like: • ATM. Apart from this retail focus. In some countries such as Germany. Telegraphic Transfers.Savings bank: In Europe. Demand Drafts Mail Transfers. Importance of Banks: Banks are important players in financial markets and offer financial services such as investment funds. savings banks were created on public initiative. banks are usually the nexus of a cross-share holding entity known as the 7    . lend and invest. banks have historically owned major stakes in industrial corporations while in other countries such as the United States banks are prohibited from owning nonfinancial companies. Functions of Bank: • • • • • Primary function is to accept deposit.

New phase of Indian Banking System with the advent of Indian Financial & Banking Sector Reforms after 1991. Bank of Bombay (1840) Bank of Madras (1843) as independent units and called it Presidency Banks. and Bank of Mysore were set up. 8    . was set up in 1894 with headquarters at Lahore. Bank of Baroda. as most banks offer insurance services (and now real estate services) to their clients. Punjab National Bank Ltd. In 1865 Allahabad Bank was established and first time exclusively by Indians. Central Bank of India. The Indian Banking History: The Banking system of India should not only be hassle free but it should be able to meet new challenges posed by the technology and any other external and internal factors. 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. The government's regular policy for Indian bank since 1969 has paid rich dividend with the nationalization of 14 major private banks of India. Phase II and Phase III. the journey of Indian Banking System can be segregated into three distinct phases. with countries such as Iceland. These three banks were amalgamated in 1920 and Imperial Bank of India was established which started as private shareholders banks. bancassurance is prevalent. Indian Bank. This is one of the main reason of India's growth process. though conservative. was established in 1786. Phase I: The General Bank of India was set up in the year 1786.zaibatsu. The first bank in India. In fact. Next came Bank of Hindustan and Bengal Bank. Indian banking system has reached even to the remote corners of the country. The most striking is its extensive reach. Bank of India. From 1786 till today. To make this write-up more explanatory. In France. the United Kingdom and the United States having relatively light regulation of the banking sector. It is no longer confined to only metropolitans or cosmopolitans in India. mostly Europeans shareholders. Canara Bank. For the past three decades India's banking system has several outstanding achievements to its credit. and countries such as China having relatively heavier regulation (including stricter regulations regarding the level of reserves). The East India Company established: Bank of Bengal (1809). Between 1906 and 1913. we prefix the scenario as Phase I. The level of government regulation of the banking industry varies widely.

Second phase of nationalization Indian Banking Sector Reform was carried out in 1980 with seven more banks. The financial system of India has shown a great deal of resilience. As an aftermath deposit mobilization was slow. Mrs. major process of nationalization was carried out. Efforts are being put to give a satisfactory service to customers. In 1991. It formed State Bank of india to act as the principal agent of RBI and to handle banking transactions of the Union and State Governments all over the country. and banks and their customers have limited foreign exchange exposure. Phase II: Government took major steps in this Indian Banking Sector Reform after independence. It was the effort of the then Prime Minister of India. a committee was set up by his name which worked for the liberalization of banking practices. 14 major commercial banks in the country were nationalized. Seven banks forming subsidiary of State Bank of India was nationalized in 1960 on 19th July. Phone banking and net banking is introduced. During the first phase the growth was very slow and banks also experienced periodic failures between 1913 and 1948. Moreover. It is sheltered from any crisis triggered by any external macroeconomics shock as other East Asian Countries suffered.Reserve Bank of India came in 1935. the Government of India came up with The Banking Companies Act. Phase III: This phase has introduced many more products and facilities in the banking sector in its reforms measure. The entire system became more convenient and swift. In 1955. To streamline the functioning and activities of commercial banks. During those days public has lesser confidence in the banks.The country is flooded with foreign banks and their ATM stations. the capital account is not yet fully convertible. Indira Gandhi. This is all due to a flexible exchange rate regime. Reserve Bank of India was vested with extensive powers for the supervision of banking in India as the Central Banking Authority. There were approximately 1100 banks. Abreast of it the savings bank facility provided by the Postal department was comparatively safer. funds were largely given to traders. 1949 which was later changed to Banking Regulation Act 1949 as per amending Act of 1965 (Act No. 23 of 1965). mostly small. This step brought 80% of the banking segment in India under Government ownership. under the chairmanship of M Narasimham. 9    . Time is given more importance than money. 1969. the foreign reserves are high. it nationalized Imperial Bank of India with extensive banking facilities on a large scale specially in rural and semi-urban areas.

00 $1.067. saw increased use of credit-based banking in the Mediterranean world.00 $1. temples presented an extra deterrent to would-be thieves. became a prominent banking center.224. however. France ABN AMRO Holding NV . Frankfurt am Main . Zurich . and state granaries functioned as banks. Switzerland Societe Generale .577.00 10    . Germany BNP Paribas SA . The development of Roman banks was limited. Amsterdam .272. Amsterdam .477. Banks probably predated the invention of money. and eventually precious metals such as gold. In the late third century B.904.849. By the time of Hammurabi's Code.362.00 $2.782. France UBS AG .C. France Barclays PLC .00 $1. Edinburgh . by the Roman preference for cash transactions. Charging interest on loans and paying interest on deposits became more highly developed and competitive.996. in the form of easy-to-carry compressed plates.727.598. Paris .453. Netherlands ING Bank NV . There are extant records of loans from the 18th century BC in Babylon that were made by temple priests/monks to merchants.2008: TOP 10 BANKS IN THE WORLD BANK The Royal Bank of Scotland Group plc . Temples and palaces were the safest places to store gold as they were constantly attended and well built.442. Deposits initially consisted of grain and later other goods including cattle. known for its magnificent harbor and famous temple of Apollo.00 $2. As sacred places. London .953.880. grain had been used as a form of money in addition to precious metals. from early times. the barren Aegean island of Delos. UK Deutsche Bank AG .382. Japan RANK 1 2 3 4 5 6 7 8 9 10 ASSETS. Paris La Defense . Paris .00 $2.C. Tokyo .00 $2.Ancient Rome perfected the administrative aspect of banking and saw greater regulation of financial institutions and financial practices. agricultural implements.GLOBAL BANKING HISTORY: The first banks were probably the religious temples of the ancient world.US $ MILLION $3.00 $1. The fourth century B. banking was well enough developed to justify the promulgation of laws governing banking operations.566. In Egypt.00 $2.. and were probably established sometime during the third millennium B.C.498.007. Netherlands The Bank of Tokyo-Mitsubishi UFJ Ltd . The following is a list of “The World’s Top 10 Banks for 2008″ based on assets held as of April 30. UK Credit Agricole SA .

With around 3171 ATMs.419 branches and 4. Punjab National Bank: Has been in operation since 1895. the bank provides round the clock banking convenience. Despite the recessive tendency in Indian economy. AXIS Bank: One of the top private banks in India. HSBC: The first ATM provider of India.000 branches and is also accountable for one-fifth of the loans of India.644 ATMs spread countrywide. army personnel. It has its presence in 18 countries across the world including UK. HDFC Bank: It is also among the top banks of India offering various banking services for the customers like Personal Banking. The bank provides a wide array of banking products through their effective network not only on India but also overseas. Net Banking. It was first among the new private banks to have started its operations in the year 1994. This commercial bank of India first started to function in 1853. Canada. It opens up ample banking services for the customers apart from cash management. venture capital and asset management and life and non-life insurance. financial planning and business banking facility. It has about 8500 ATMs across the nation. ICICI also plays a pivotal role in the domains of investment banking. It has a provision of 150-in-branch and off-branch ATMs and phone banking for 24 hours. NRI Services. AXIS has its significant presence in about 4509 districts of India with a wide network of over 729 branch offices and Extension Counters. Online Remittances and others. Phone Banking and Mobile Banking.It is also the second largest bank in the globe. students and women. Russia and others. It is among the top commercial banks of India providing a wide range of banking services through varied delivery channels. 11    . PNB is a trusted name in the banking segment of India. The bank has about 16. This government owned bank was established in the year 1806.List of Top Banks of India: State bank of india: SBI is the oldest bank of India and also India's largest commercial bank. Besides offering high-end banking facilities like Internet banking. PNB has managed to eke out profit on a sustained manner. ICICI Bank: This is the second largest bank in India with about 1. It is among the few other public sector banks of India that runs special schemes for senior citizens. The year 2008 has been very prosperous for HDFC as it won a host of awards for being the best retail bank and also the best among other Indian banks to adopt Information Technology. it was earlier known as the Unit Trust of India (UTI) since it was promoted by the same organization. HSBC Bank is one of India's top banks with its operational base extending consistently.

Around 27. Founded in the year 1911. this is India's first commercial bank that was completely managed and owned by Indians. 12    .000 crore. With an average business of around 2. Central Bank of India has a significant presence in India's financial orbit. Union Bank of India: This PSU unit has convinced the customers that they are 'Good people to bank with'.000 employees work together to fulfill the bank's mission to reduce the gap between expectations and deliverables.Central Bank of India: This is one of the largest and oldest commercial banks in India. More than 50% of share capital of Union Bank of India is held by Indian government.

notably liquidity risk. RBI act and Negotiable Instruments Act Banking Regulation Act. 1949 As per Section 5(c) of Banking Regulation Act. To consolidate and amend the law relating to banking Reserve Bank of India act was introduced in 1934 and since then amended from time to time to include the latest requirements. repayable on demand or otherwise. For directing the banks when they err d. certain provisions of the Banking Regulation Act are also applicable to the State Bank of India. As per section 51 of Banking Regulation Act. 1949. To regulate the issue of Bank notes c. RB I ACT: Reserve Bank of India Act. which was initially published in June 2004. Basel II norms. 1934 was enacted to constitute the Reserve Bank of India a. Advocates of Basel II believe that such an international standard can help protect the international financial system from the types of problems that might arise should a major bank or a series of banks collapse. any corresponding new bank.2000 to enable RBI to make regulations for regulating payment systems of banks and financial institutions Focal points for Strengthening the Banking System Prudential Regulation: Issues in prudential regulation related to FCAC would encompass broadly the following components: (i) Regulation of the specific and inter-related risks that arise from international capital flows. To regularize issue of Bank notes b. As per Section 5(b) of Banking Regulation Act. credit risk. counter-party risk and country risk. • A provision was inserted by the Information Technology Act. 1949 . foreign currency risk. is to create an International standard that banking regulators can use when creating regulations about how much capital banks need to put aside to guard against the types of financial and operational risks banks face. for the purpose of lending or investment. order or otherwise. interest rate risk. which are recommendations on banking laws and regulations issued by the Basel Committee on Banking Supervision. Basel II Regulations: Basel II is the second of the Basel Accords. 1949 a "Banking Company" means any company which transacts the business of banking in India. draft. of deposits of money from the public. The purpose of Basel II. 13    .Legal Issues: Banks work under various legal framework the most important of these is the Banking Regulation Act 1949. "Corresponding new bank" has been defined under clause (ee) of section 2 of the DICGC Act to mean a corresponding new bank constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Acts of 1970 or 1980. and withdrawable by cheque. banking means the accepting. a regional rural bank and any subsidiary bank.

(ix) Uniform prudential limits prescribed by the RBI for interest rate risk (IRR) and capital market exposure (CME) need to be replaced with a differential limit regime which will factor-in the level and quality of risk management systems and capital in banks. 1949 allows issue of only one type of banking licence. This will require active involvement. Reverse Repo Rate: The reverse repo rate under the LAF has been retained unchanged at 3. (xi) Modifications to regulation to discourage or eliminate scope for regulatory arbitrage. coordination and cooperation among the financial sector regulators. Consideration should be given to introducing a higher core capital ratio than at present.0 per cent of net demand and time liabilities (NDTL) Interest Rate Response from Banks: As liquidity remains ample. including oversight to limit excessive exposures. (vii) The scope for undertaking enhanced activity particularly in new financial services should be linked to quality and adequacy of capital. viz. focusing on activity-centric regulation rather that institution-centric regulation will be needed. which permits all licensed banks to undertake all banking activities. (viii) On derivatives and related transactions. strengthening of risk management frameworks in banks and supervisory capacity. and whole banking licence.0 per cent. (iv) The Banking Regulation (BR) Act. (vi) Capital adequacy standards should enhance the resilience of banks. risk management system and personnel. The risk weighting system should be modified to reflect the actual economic risk undertaken by banks.75 per cent. The system should move forward to a differential capital regime. would be needed. 14    .25 per cent. (iii) There is scope for considerable improvements in corporate governance in public sector banks with the aim of ensuring operational autonomy and equipping them to compete with other banks as equals. the competitive pressure on banks to reduce lending rates has increased.. Repo Rate: The repo rate under the Liquidity Adjustment Facility (LAF) has been retained unchanged at 4. There may be a need for the RBI to issue restricted banking licences to some banking institutions to enable them to exploit their core competencies. (v) Level of computerization and branch interconnectivity and computer security should meet the standards of well developed financial markets. Current Government Policies: Monetary Measures Bank Rate: The Bank Rate has been retained unchanged at 6. Cash Reserve Ratio: The cash reserve ratio (CRR) of scheduled banks has been retained unchanged at 5. The Reserve Bank has the flexibility to conduct repo/reverse repo auctions at a fixed rate or at variable rates as circumstances warrant. (x) Increased transparency and market discipline with quantitative and qualitative disclosures will be needed on risk exposures and risk management systems in banks.(ii) Improvements in financial institutions’ liquidity management and disclosure practices as they are encouraged to diversify funding sources to contain maturity mismatches and improve debt equity mix.

year-on-year (y-o-y). and be prepared to respond quickly and effectively through policy adjustments. ensuring comfortable US dollar liquidity and maintaining a market environment conducive for continued flow of credit to the productive sectors. Monetary Policy Stance On the basis of the above overall assessment.8 per cent at end-March 2009 as compared with 21. 2009 as compared with 21. Monetary Policy The monetary policy stance of the Reserve Bank shifted from concerns related to inflation in the first half of 2008-09 to maintaining financial stability and arresting the moderation of growth in the second half. reflecting deceleration in the expansion of bank credit and capital inflows. it opens up room for banks to further reduce their lending rates. As the short-term deposits contracted earlier at high rates mature and get repriced.Consequently. Keep a vigil on the trends and signals of inflation.2 per cent a year ago. however. • • The Reserve Bank reiterates that it will maintain an accommodative monetary stance until there are definite and robust signs of recovery. was 18. On the way forward. the reverse repo rate has been brought down by 275 basis points and the actual/potential liquidity 15  •   . credit to private sector reflected the conditions evolving in the real sector of the economy. While money supply evolved consistent with indicative projections. This accommodative monetary stance is.4 per cent at end-March. the stance of monetary policy for the remaining period of 2009-10 will be as follows: • Manage liquidity actively so that the credit demand of the Government is met while ensuring the flow of credit to the private sector at viable rates. The exit strategy will be modulated in accordance with the evolving macroeconomic developments. the Reserve Bank will have to reverse the expansionary measures to anchor inflation expectations and subdue inflationary pressures while preserving the growth momentum.7 per cent a year ago Monetary Conditions • The conduct of monetary policy had to contend with the scale and pace of external shocks and their spillover effects through the real. not the steady state. Growth in broad money (M3). Maintain a monetary and interest rate regime consistent with price stability and financial stability supportive of returning the economy to the high growth path. financial and confidence channels. Since mid-September 2008. was 18. The thrust of the various policy initiatives has been on providing ample rupee liquidity. the transmission of policy rate changes to bank lending rates has improved since the last Annual Policy Statement in April 2009. y-o-y. Aggregate deposits of banks. the policy repo rate has been reduced by 425 basis points.

these numbers are provided as indicative projections and not as targets. Money Supply In order to ensure that the increased Government market borrowing programme does not crowd out credit flow to the private sector.61. as well as domestic cyclical factors.5..9 per cent.700 crore (excluding Rs. Macroeconomic Outlook • • • An assessment of the economic conditions at the current juncture indicates that the global economic conditions have deteriorated sharply during 2008 and the forecasts of the various international agencies point to deepening of recessionary conditions during 2009 as well. driven by robust growth in deposits (21. Major Reform Initiatives Some of the major reform initiatives in the last decade that have changed the Face of the Indian banking and financial sector are: • Interest rate deregulation. Consistent with this.0 per cent ─ higher than the projection of 4. • Broad money growth (year-on-year) remained high at 20. The Reserve Bank’s Industrial Outlook Survey of Manufacturing Companies in the Private Sector indicates that the business expectations indices based on the assessment for JanuaryMarch 2009 and expectations for April-June 2009 declined sharply by 20. 16    .injection/availability is over Rs. which was evident in the large and regular absorption of the surplus from the system through LAF by the Reserve Bank. 000 crore under SLR reduction). 2009).7 per cent and 13. As always. over the previous quarters. These measures taken by the Reserve Bank have ensured availability of ample liquidity in the banking system. As anticipated. Interest rates on deposits and lending have been deregulated with banks enjoying greater freedom to determine their rates. the various surveys of economic activity point towards prevalence of less than optimistic sentiment for the outlook of the Indian economy in the coming months. the projection of money supply (M3) growth for 2009-10 has been raised to 18 per cent from 17 per cent indicated in the Annual Policy Statement. The Professional Forecasters’ Survey conducted by the Reserve Bank in December 2008 suggested moderation in economic activity in 2008-09 and 2009-10. aggregate deposits and adjusted non-food credit of commercial banks are projected to grow by 19 per cent and 20 per cent respectively.0 per cent) on the sources side. the WPI inflation turned negative in June 2009 due to the statistical base effect and not because of any contraction in demand.0 per cent (up to July 3.0 per cent) on the components side and significant increase in banking system's credit to the Government (48.0 per cent made in the Annual Policy Statement of April 2009. Inflation Outlook According to the reserve bank governor WPI inflation for end-March 2010 is projected at around 5.40. Market absorption of the government borrowing programme was facilitated by dampened demand for credit from the private sector in the face of a high deposit growth. Reflecting global developments and their impact on the Indian economy. respectively.

forward cover to hedge inflows under foreign direct investment.8% in 2001-02. corporate governance. interest rate swaps. income recognition and provisioning are now close to global standards. Limits for investment in overseas markets by banks. Banks now enjoy greater operational freedom in terms of opening and swapping of branches. provisioning. cross currency forward contracts.. which is reflected in the decline in the bank concentration ratio. The overseas investment limit for corporate has been raised to 100% of net worth and the ceiling of $100 million on prepayment of external commercial borrowings has been removed. that portion of NPAs which is not provided for) have declined Gradually from 10. Best international practices in accounting systems. Government equity in banks has been reduced and strong banks have been allowed to access the capital market for raising additional capital. liquidity adjustment facility for meeting day-today liquidity mismatch. The share of top 5 banks in total assets declined from 17    . forward rate agreements. are being adopted. Central Depositories Services Ltd. Net NPAs (i. Negotiated Dealing System and move towards Real Time Gross Settlement. besides of course investment banking.g.e. With banks permitted to diversify into long-term finance and DFIs into working capital. along with legal and institutional reforms. asset management. Credit Information Bureau India Ltd. has led to visible improvement in asset quality in banks. mutual funds and corporate have been liberalized. guidelines have been put in place for the evolution of universal banks in an orderly fashion. Several new institutions have been set up including the National Securities Depositories Ltd. New areas have been opened up for bank financing: insurance. credit cards. leasing. and exposure limits. asset classification. and banks with a good track record of profitability have greater flexibility in recruitment. Technology infrastructure for the payments and settlement system in the country has been strengthened with electronic funds transfer. Centralized Funds Management System. etc. factoring. investment fluctuation reserve.. New private sector banks have been set up and foreign banks permitted to expand their operations in India including through subsidiaries. etc. Indians allowed to maintain resident foreign currency (domestic) accounts. income recognition. New instruments have been introduced for greater flexibility and better risk management: e. etc. Increase in the number of players has increased competition..7% in 1994-95 to 5. RBI has introduced Risk Based Supervision of banks (against the traditional transaction based approach). Structured Financial Messaging Solution. Full convertibility for deposit schemes of NRIs introduced. Reduction in pre-emotions’ – lowering of reserve requirements (SLR and CRR). payment and settlement systems. MFs and corporate can now undertake FRAs with banks. The definition of priority sector has been widened to include food processing and cold provisioning. Universal Banking has been introduced. thus releasing more lendable resources which banks can deploy profitably. gold banking. Clearing Corporation of India Ltd. Credit delivery mechanism has been reinforced to increase the flow of credit to priority sectors through focus on micro credit and Self Help Groups. asset classification. infrastructure financing. Prudential norms for capital adequacy. Banks have also been allowed to set up Offshore Banking Units in Special Economic Zones. Adoption of global standards.• • • • • • • • • • • • Adoption of prudential norms in terms of capital adequacy.

5-0. In addition. RBI guidelines have been issued for putting in place risk management systems in banks.5% in industrialized countries. new private sector banks and foreign banks. RBI in turn includes only those banks in this schedule which satisfy the criteria laid down vide section 42 (60 of the Act.19% in 2001-02.5% in 2001-02 while its share in profits fell from 54. The Return on Assets has hovered in the range of 0.5% to 41. it is higher than the profitability at around 0. The limit for foreign direct investment in private banks has been increased from 49% to 74% and the 10% cap on voting rights has been removed. Bank of Rajasthan Ltd. Fresh investment in CPs. Wide ranging reforms have been carried out in the area of capital markets. however. this status also subjects the bank certain conditions and obligation towards the reserve regulations of RBI. City Union Bank Ltd. Some co-operative banks are scheduled commercial banks albeit not all co-operative banks are. MARKET STRUCTURE: Commercial Banks The commercial banking structure in India consists of: Scheduled Commercial Banks Unscheduled Banks Scheduled commercial Banks constitute those banks which have been included in the Second Schedule of Reserve Bank of India(RBI) Act. 1934. Being a part of the second schedule confers some benefits to the bank in terms of access to accommodation by RBI during the times of liquidity constraints.85% in 1996-97 to 2. the limit for foreign institutional investment in private banks is 49%. At the same time. the Reserve Bank of India categorizes them as public sector banks.• • • 51. 18    . all major bank groups in India have remained profitable. 3.7% in 1991-92 to 43. Dhanalakshmi Bank Ltd. Catholic Syrian Bank Ltd. old private sector banks.8% since the mid-1990s – while this is on the lower side compared to many developing countries. The improvement in efficiency is also seen from the intermediation cost for scheduled commercial banks. 4. Despite intensification of competition and introduction of prudential norms. For the purpose of assessment of performance of banks. Directory of Banks in India: Old Private Sector Banks 1. which declined from 2. 2.4% in the same period. CDs are allowed only in dematerialized form.

4. Karur Vysya Bank Ltd. Bank of Punjab Ltd.Links to all Nationalized Bank Websites 1. Directory of Banks in India: Directory of Public Sector Banks. (since merged with Centurion Bank) 2. 10. Andhra Bank 3. 7. Lakshmi Vilas Bank Ltd. Axis Bank (earlier UTI Bank) 9. HDFC Bank Ltd. Kotak Mahindra Bank Ltd. ICICI Bank Ltd. Yes Bank Ltd. Allahabad Bank 2. IndusInd Bank Ltd. Karnataka Bank Ltd. 9.5 Federal Bank Ltd 6. Development Credit Bank Ltd. 7. Jammu and Kashmir Bank Ltd. 8. 6. ING Vysya Bank Ltd. Directory of Banks in India: New Private Sector Banks 1. 8. Centurian Bank of Punjab (since merged with HDFC Bank) 3. 5. Bank of Baroda 4. Bank of India 19    .

The impressive story of its inception is interesting and inspiring for all the youth of this country. SBI has 30 Regional Rural Banks in India known as RRBs. 20    . Few of them are as follows • • • • • Haryana State Cooperative Apex Bank Limited: NABARD: National Bank for Agriculture and Rural Development (NABARD) is a development bank in the sector of Regional Rural Banks in India. Corporation Bank 9. Canara Bank 7. The road map has two phases. Central Bank of India 8. United Bank of India: Syndicate Bank was firmly rooted in rural India as rural banking. Bank of Maharashtra 6.5. Rural Banks in those days mainly focused upon the agro sector. there are other few banks which functions for the development of the rural areas in India. They have helped made Indian Banking system more competitive and efficient. Foreign Banks in India: Foreign banks have brought latest technology and latest banking practices in India. foreign banks may establish a presence by way of setting up a wholly owned subsidiary (WOS) or conversion of existing branches into a WOS. Dena Ban 10. Government has come up with a road map for expansion of foreign banks in India. Sindhanur Urban Souharda Co-operative Bank: Popularly known as SUCO BANK is the first of its kind in rural banks of India. The second phase will commence in April 2009 after a review of the experience gained after due consultation with all the stake holders in the banking sector. Indian Bank Regional Rural Banks in India Rural banking in India started since the establishment of banking sector in India. Apart from SBI. During the first phase between March 2005 and March 2009. Regional rural banks in India penetrated every corner of the country and extended a helping hand in the growth process of the country.

000 clients. Standard Chartered Bank: Standard Chartered Bank is a London based bank. Barclays GRCB India has placed itself amongst the most respected foreign banks in the country that is serving more than 830.Major foreign banks in India are: ABN-AMRO Bank: The history of ABN Amro Bank dates back to the year 1924 Abu Dhabi Commercial Bank Ltd. Although the bank is located in Britain. and the 6th largest company in the world as of April 2009. headquartered at Frankfurt in Germany. American Express Company is a global financial services provider. Deutsche Bank: Deutsche Bank. American Express Bank Ltd: With its headquarters located in New York. is one the world's leading international financial service providers with roughly EURO 2. Africa and Middle East. and is known to be one of the largest banks to exist in South East Asian region by asset value. BNP Paribas: BNP Paribas is one of the oldest banks in the continent of Europe. Barclays Bank: Barclays GRCB India is led by Samir Bhatia as its Managing Director. a London based banking giant which.. is the largest banking group in the world. In a short period of just two and a half years. Citibank: Citibank is one of the largest banks in the U. and is a part of the financial services company Citigroup. 21    . also known as “AmEx” in short.: Abu Dhabi Commercial Bank (ADCB) is one of the most prominent nationalized banks of the United Arab Emirates (UAE).000 employees. U. still a huge chunk of its revenues originate from the continents of Asia. according to the Forbes magazine. HSBC Ltd: HSBC Bank is a subsidiary of HSBC Holdings plc.S..2 trillion in assets and approximately 80. DBS Bank Ltd: DBS Bank is a Singapore-based bank.S.

Banking in the sunshine of Government ownership gave the public implicit faith and immense confidence about the sustainability of these institutions. 1969. loans of Rs. Meanwhile. Branch network of the banks was widened at a very fast pace covering the rural and semi-urban population. During December 1969. 1959: Nationalization of SBI subsidiaries.28. Measures were also taken to reduce the structural constraints that obstructed the growth of money market.SIGNIFICANT EVENTS IN BANKING SECTOR The following are the steps taken 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. 1971: Creation of credit guarantee corporation. deposits of Rs. customer service. The Service Area Approach was introduced during 1989. during 1962 Deposit Insurance Corporation was established to provide insurance cover to the depositors. the branches of the public sector bank India rose to approximately 800% in deposits and advances took a huge jump by 11. Consolidation phase: The phase started in 1985 Attention was paid to improving house-keeping. Most importantly. the Govt. banking in India has evolved through four distinct phases: Foundation phase can be considered to cover 1950s and 1960s till the nationalization of banks in 1969.1813 cr and with 4134 branches accounting for 80% of advances. RBI introduced the Lead Bank Scheme on the recommendations of FK Nariman Committee. In these five decades since independence. 1975: Creation of regional rural banks. promulgated Banking Companies (Acquisition and Transfer of Undertakings) Ordinance 1969 to acquire 14 bigger commercial bank with paid up capital of Rs. credit management.000%. 1980: Nationalization of seven banks with deposits over 200 crore. staff productivity and profitability of banks. On July 19.50 cr. The focus during this period was to lay the foundation for a sound banking system in the country. A determined effort was made to make banking facilities available to the masses. 1961: Insurance cover extended to deposits. Expansion phase had begun in mid-60s but gained momentum after nationalization of banks and continued till 1984. 1969: Nationalization of 14 major banks. credit flows were guided towards the priority sectors.2629 cr. 22    . which had no access to banking hitherto. After the nationalization of banks.

1930-33.earliest Euro wide /Mideast banking 1100-1300. prudential guidelines on asset classification and income recognition.The South Sea Bubble and John Law's Mississippi Scheme. Knights Templar. wiping out a third of the money supply in the United States. more competition. Banknotes — Introduction of paper money. 1781 .[5] 2008 . 1800 .000 banks close. It was the largest bank failure in history.The Bank of North America was found by the Continental Congress.First joint-stock company. the Dutch East India Company founded.Reforms phase The macro-economic crisis faced by the country in 1991 paved the way for extensive financial sector reforms which brought deregulation of interest rates. MAJOR EVENTS IN GLOBAL BANKING HISTORY: • • • • • • • • • Florentine banking — The Medicis and Pittis among others. 23    . which caused a European financial crisis and forced many bankers out of business.Rothschild family founds Euro wide banking. capital adequacy. 1720 . 9.Washington Mutual collapses. technological changes. autonomy packages etc.In the wake of the Wall Street Crash of 1929. 1602 .

6. BANK CREDIT:-The borrowing capacity provided to an individual by the banking system in the form of credit or a loan.The bank charge made for payment of a note prior to maturity. 24    . firm or corporation that has been declared insolvent through a court proceeding and is relieved from the payment of debts (or allowed to do so) after the surrender of all assets to a court appointed trustee. 13. The full amount expressed in the instrument is called as repayment.A written demand accepted by a bank to pay a specified amount at a future date. which does most or all of the following . expressed as a percentage of note’s face value. capacity (sufficient cash flow to service the obligation). cheque issued by account holder may not yet reflect in banks books but accounted for by the issuer. AMORTIZATON: . certifies depositor’s cheques and issues drafts. 5. 10. Hence. 9.receives demand and time deposits. honors instruments drawn on them. BANK RATE: . 7. BANK DRAFT: . the need to know the likely balanced. by regular payments over a specified period of time . 4. a person who is entitled to received payment on the instrument as a payee in a cheque. BANKER’S ACCEPTANCE: .A person.The holder of a negotiable instrument. 12. insurance.The process of adjusting balance in an account reported by a bank that has occurred since the reporting date. authorizing the second bank to make payment to the individual named in the drafts. BEARER: . The yearly cost of a loan including interest. 11. APR:-ANNUAL PERCENTAGE RATE. 4 C’S OF CREDIT: . 2.The floor interest rate (Least interest rate) charged by banks to the borrowers or the discount rates set by a central bank or the rate at which RBI lends to member banks. For instance. front-end interest discounted on an instrument or the amount paid to the holder/bearer of the instrument (borrower) after interest is deducted.The four key elements a borrower should have to obtain credit: character (integrity). BOUNCED CHEQUE: . In short.discounts notes. and collateral (assets to secure debit). BANKRUPT: .such payments must be sufficient to cover both principal and interest. drafts and notes. BANK DISCOUNT: .A cheque drawn by one bank against funds deposited into its accounts at another bank. such as loan. BANK RECOCILIATION: . capital (net worth or owned funds). BANK:-An organization. 3.collects cheques. That is. pays interest on them .The gradual elimination of a liability.IMPORTANT CONCEPT RELATED TO BANKING: 1.A cheque which a bank returns because it is not payable due to insufficient funds in the account of the drawer of the cheque to search other reasons. 8. etc. The total bank credit the individual has is the sum of the borrowing capacity each lender bank provides to the individual. EMI’S are an example of this. makes loans and invests in securities . expressed as a percentage.

The possibility that a bond issuer/borrower will default. Also called default risk. it is the discount rate. Sovereign bonds issued by the government for the most part. 15. since companies could go bankrupt.14. which makes the current investment in a business equal to the present value of future cash flows arising out of the business plus the terminal value of business. CREDIT RISK: .Financing by selling bonds. Simply put. i.e. INTERNAL RATE OF RETURN ( IRR ):. Quasi government bodies occasionally default as well although it is much less common.the rate of return that would make the present value of future cash flows of an investment or business opportunities plus the terminal values of the business equal the current market price of the investment or opportunities. 16. the NPV of the business equals zero. Bond issued by corporation is more likely to be defaulted on. 25    . bills or notes to individuals or institutions. are immune from default (if the government needs money it can just print more). DEBT FINANCING: . by failing to repay principal and interest in a timely manner.

Bank of Maharashtra has over 12 million customers across the length and breadth of the country served through a network of 1428 branches in 22 states and2 union territories – a truly pan India bank. the bank expanded rapidly. The authorized capital was Rs.G. 1935 at Pune. Their vision was to reach out and serve the comman man and meet all their working needs.MICRO ANALYSIS Bank of Maharashtra 2010 Platinum Jubilee Year Introduction and History: The fledgling First Steps: The bank was founded by a group of visionaries led by the late Prof. The Adult The bank has fine tuned its services to cater to the needs of the common man and incorporated the latest technology in banking offering a variety of services. Successive leadership of the Bank and the employees have endeavoured to fulfil their vision. forward looking. The Birth Registered on 16th Sept 1935 with an authorized capital of Rs 10. customer centric bank serving diverse sections of the society.K. 26    .Kale and the late Shri. its initial help to small units has given birth to many of today's industrial houses.00 lakh and commenced business on 8th Feb 1936. The Bank has the largest network of branches by any Public sector bank in the state of Maharashtra. After nationalization in 1969. The Childhood Known as a common man's bank since inception. V.10 lakhs and issued capital of Rs. techno-savvy. enhancing shareholders’ and employees’ value while moving towards global presence. It now has 1428 branches all over India. D. Sathe and registered as a banking company on 16th September. Our Vision Statement To be a vibrant. 5 lakhs. Today.

it has a good share of Priority sector lending having 38% of its branches in rural areas. Bank of Maharashtra ". in the whole country. The Pillar Our institution. 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. The Autonomy The Bank attained autonomous status in 1998. Our Aim: The bank wishes to cater to all types of needs of the entire family. It helps in giving more and more services with simplified procedures without intervention of Government.Symbolising service. 27    . The 3 M's Symbolising • • • Mobilisation of Money Modernisation of Methods and Motivation of Staff. Other Attributes Bank is the convener of State level Bankers committee. All the branches of the Bank are fully computerised. overlooking the profit aspect. The Diyas Our Branches.Our Logo The Deepmal With its many lights rising to greater heights. Its dream is "One Family.Symbolising strength. One Bank. Our Social Aspect The bank excels in Social Banking.

Strong customer base in Maharashtra 2. The name of the bank carries a regional image. 5. Adequate sanctioning powers of authorities internally Weaknesses: 1. Acquiring more government business such as pension and PPF. Density of branches in Maharashtra alone is very high. Threats: 28    . Loyal group of customers since many years 3. More scope into Retail advances and Macro finances. No branches abroad. Large retail customer base (Low cost deposits from retail of BOM were highest upto last year) 7. 3. 7. Large number of branches in semi-urban areas in Maharashtra and Madhya Pradesh 6. economists and CAs 4. Forex business is low. 2. Efficient internal system 8. 3. 6. Larger risk involved in retail customer base.SWOT Analysis Strengths: 1. NPA (Non-performing assets) is high. Highly qualified staff with doctorates. Opportunities: 1. Retail customers are more demanding. 4. 2. Strong network in Maharashtra and Gujarat 5. Acquisition of smaller private sector banks.

50 . Reducing NPI (Net Profit Interest).09 wef 02.00 29    Duration Revised rates wef Revised rates 02.50 3.05.09 2.50 2.100 inclusive of Rs.farmers ease 6) Finance for Non-conventional Sources of Energy-beyond time 7) Micro Finance-never too small for us 8) Swarna jayanti Gram Swarozgar Yojana (SGSY)-Rural focus 9) Swarna Jayanti Shahari Rozgar Yojana (SJSRY). 3. senior citizens or even NRIs. Free entry of foreign banks after 2009. e-banking etc 2.of towns and cities 10) Assistance to SC/ST Category-finance for everyone 11) Advances to Minority Community-no bars 12) Maha-Entrepreneur-for the spirit of challenge 13) Women Empowerment b) Products catering to different segments of population such as students. 100 crore crore and crore above Revised rates wef 02. 5 crore to less of Rs. 2. For Amount of Rs. 5 than Rs. c) Products catering to different needs of people such as educational loans.50 2.50 2.05. banking needs of women in rural areas. consumer loans.09 7days -14 days 15 days to 30 days 2. Reducing Feebased income. Product A ) Huge Range of Products : 1) Retail financing 2) Housing loan to public 3) Model Educational Loan scheme-from learning to earning 4) Aadhar Scheme for pensioners-no old age blues 5) Mahabank Kisan Credit Card (MKCC).05. 7Ps 1. Price a) Attractive Interest rates of fixed term deposits and interest rates of loan. 1 For Amount above For Amount crore up to and Rs.1.

00 3.00 5. b) Uses promotional literature such as brochures and pamphlets to increase awareness about schemes available among customers c) Promotes its social image by sponsoring events such as CommonWealth Youth Games 2008. c) Large network of ATMs.00 3.00 2.5% to the senior citizens on the same 3.00 6.25 3.25 5.00 6. b) Loyal Employees working since many years.00 b) Concession of 0.50 6.25 5.25 4. Place a) Bank Of Mahrashtra has largest number of branches in Maharashtra b) Thick network in semi-urban and rural areas.75 6. SavaiGandharv Mahotsav in Pune.50 4.50 3.00 6. Promotion a) Promotes its image as “ One family – One bank ” through various family oriented schemes.00 6.25 5.25 5.50 6.00 6.50 3.People a) Highly Qualified Staff.00 6.00 5.25 5.50 4.00 6.31 days to 45 days 46 days to 90 days 91 days to 180 days 181 days to 270 days 271 days to less than one year ONE YEAR or 365 days Over One year to less than three years Three Years (Mahalaxmi Term Deposit) Over three years to five years Above 5 years 3. 4.00 2.00 6. Felicitation of Bhimsen Joshi on his receiving of highest honour of Bharat Ratna 5.25 3. 30    .

a) Concurrent Audits Their purpose is to check conformance to procedural guidelines. 6. Physical Evidence a) Large network of 1428 branches in 22 states and2 union territories b) Large number of ATMs c) Computerized branches and use of software solutions for banking such as Core Banking Solutions and Bibass. Pune while its disaster recovery unit is established in Chennai. d) Process Control Mechanisms implemented in BoM There is an Inspection department at Central and all regional offices. b) Implementation of Information Technology 801 branches are connected through Core Banking Solutions while the rest in semi-urban and rural areas use Bibas software solution. 7. Information Technology centre is established in Kharadi. c) Disaster Recovery and Contingency management plans are in place in case of any calamities. One branch cross-checks the other branch’s functioning. b) Cash Verification Inspections These are internal inspections carried out within the organization.c) Relationship building with the customer d) Special treatment is given to valued customers such as Insta-Debit Cards which are issued and delivered to customers within two days. 31    .Process : a) Use of simple and less complicated technology at all branches to facilitate easy and smooth transactions. These are held every month in selected branches by external auditors.

375.03.68%.74 as on 31.87% as on 31.03.08 to Rs.57% as on 31.3. Net NPA declined to 0. 7.328.NP for 2008 Rs.4792 Cr for year 08-09.08. 1.71556 Cr Growth of 21. 4.41758Cr.03. Total income was Rs.29% against 2.Total Business for year 2009 Rs.Deposit for 2009 Rs.87072 Cr & year 2008 Rs. Board of directors Declare Dividend of 15 % for year 2008-2009. Deposits Rise of Rs 10497 Cr . 5.09 from 0. 6. Share of Current & saving deposit was 35. 29798 Cr on 31. NET PROFIT was Rs.03.38 Cr.34817 on 31.09.69%.41% of previous year reflecting robust growth on core activity.03.Analysis of Balance Sheet Bank of Maharashtra . Book value per share (excluding revaluation reserve) improved to Rs. Gross advances growth of 16. Decline In NPA (non performing assets) to 2. Source: Annual Report BOM 09-10 32    .39. 3.24% . 52255 Cr & 2008 Rs .Financial Report as on 31.16 Cr for the year 2009 Rise of 14.3.79% on 31.2009.84 % from Rs. 2. Growth of 25.09 Current Share price: 8.08.

79 7935 3752 5000 2.21 2.06 18.93 39.67 41.Financials -31st march 2009 Parameters Total Business Total Deposits Gross advances Total Investments CD ratio Percentage Of Priority sector advance Percentage of Agriculture advance Percentage of gross NPA to Gross Advances Percentage of Net NPA to Net Advances Operating Profit Net Profit Other Income Net Interest Margin % Return on Equity % Book Value Per Share(Rs) Capital adequacy ratio % Total No of Employees Per Employee Business(in lakhs) No of Branch(22 states & 2 union territories ) Of which Metros Urban Semi Urban (Rs.74 12.29 0.43 21. In Millions) 31st March 2009 870722 522549 348173 183821 66.05 13631 639 1421 368 271 262 33    .

36 430 .35 .96 190 .41 .65 3893 .30 59030 .33 .24 .01 .83 4411 .30 34    .83 .26 41758 .32 4068 .78 52254 . Money at call & short notice 6 7 3881 .23 199 .52 .00 1350 .91 .00 2086 .05 .23 .34 st ASSETS Cash and Balances with Reserve Bank of India Balances with Banks.35 332 .91 .02 48150 .52 .88 . in thousands) As on 31 March As on 31st March Schedule 2009(Current 2008 (Previous Year) Year) CAPITAL AND LIABILITIES Capital Reserves & Surplus Deposits Borrowings Other Liabilities & Provisions TOTAL 1 2 3 4 5 430 .98 .91 .Rural 520 Source: Annual Report BOM 09-10               BALANCE SHEET AS ON 31st MARCH 2009 (Rs.66 .92 223 .

89 344 .10 3492 .84 418 .73 500 .69 17 18 The Schedules 1 to 18 form an integral part of the Accounts.29 .35 .80 3820 .84 35    .95 .55 .81 .97 48150 .77 .91 .72 59030 .33 .74 .61 .75 .83 258 .40 .24 .29 220 .06 4791 . INCOME Interest earned Other Income TOTAL II. in thousands) Schedule Year ended 31 March 2009 (Current Year) st Year ended 31st March 2008 (Previous Year) I.02 .36 12282 .79 3440 .83 12 15264 .34 15116 .01 .42 .38 .48 963 .43 1597 .28 .72 134 .12 13 14 4291 .57 .13 836 .78 .49 .80 .96 2311 .24 29285 .47 .64 4416 .24 .04 380 .98 15 16 3035 .19 2135 .66 1753 .16 .65 . PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31st MARCH 2009 (Rs.79 .35 .86 1216 .25 328 .28 654 .07 . EXPENDITURE Interest expended Operating Expenses Provisions & contingencies TOTAL PROFIT/LOSS Net Profit for the year Add: Profit brought forward 375 .03 .14 .37 .36 34290 .Investments Advances Fixed Assets Other Assets TOTAL Contingent Liabilities Bills for Collection Significant accounting policies Notes on Accounts 8 9 10 11 18382 .

83 .00 86 .04 .78 .40 14 .00 64 .34 258 .26 12 .50 127 .57 .70 93 .08 8.78 .68 13 .79 .63 .61 .60 .00 .98 .70 7.71 82 .80 10 .03 Nil 8 .08 463 .97 .21 65 .25 463 .00 .09 .80 258 .) 633 .51 633 .04 .63 36    .10 .TOTAL APPROPRIATIONS Transfer to Statutory Reserve Transfer to Capital Reserve Transfer to Revenue Reserve Transfer to Special Reserve Proposed dividend Tax on Dividend Balance carried over to Balance Sheet TOTAL Earning per share (Basic) (Rs.61 .

37    .

38    .

39    .

40    .

Canteen Subsidy. Reimbursement of Hospitalization Expenses upto 60 %. 6. Reward for wards on academic performance. Distress relief fund on death. reimbursement of 75% of cost of required instrument. Reimbursement of claims such as petrol. Monetary and non monetary rewards and recognition mechanism is in place to motivate performance of a high order.education . 2. 8. Mahabank employees welfare trust administers annual contribution from banks net profit towards activities/programmes for welfare of employees and their families through recreation . 4. Reimbursement of college fees of wards upto certain specified amount. 10. 12. 7. Incentives to wards of employees for extra-circular activities. 11.Human Resources Policy • • • A comprehension HRM policy facilitates acquisition and retention of human resources for consistent and sustainable business growth. Pension Schemes. 41    . 5. Holiday Homes. Availability of LFC (Leave Fare Concession) facility. 9. 3. For Physically Challenged. Employees’ Welfare Policies: 1. Free medical check-up for the family once a year.health and insurance.

3.Organization Hierarchy: Organization structure change from four-tier to a three tier structure sice Feb 2008. Central Office Regional Offices Branches Organization Hierarchy Chairman Managing Director Executive Director Genral Manager Deputy genral Manager Assistant Manager Chief Manager Seniour Manager Manager Deputy Manager Clerk . Three-tier structure consists of three levels: 1. 42    . 2.

H. Gogia Director (RBI nominee) Shri Tuljapurkar Devidas Ramchandra Workmen Director Shri T Parameswara Rao Director Shri Chittaranjan Patwari Director Shri Anand Kamalnayan Pandit Shareholder Director Dr. Kocheta Director 43    . S. U.G.K. Bhardwaj Director (Government nominee) Shri S.P. Despande Officer Director Shri S.Key Personnel: Shri Allen C A Pereira Chairman and Managing Director Shri M. Dinesh Shantilal Patel Shareholder Director Dr. Sanghvi Executive Director Shri V.

• So far 3736 farmers from Akola . • These M-SETI centres have conducted 187 programmes and trained 3905 unemployed youths of which 2696 have successfully started their own livelihood activities. towards this end the bank has made available space at Model Colony. Nasik. conducts these programmes every Saturday and Sunday in various parts of Amaravati and Yavatmal districts. Agriculture experts give technical inputs to these farmers. With the high number of suicides amongst the farmers inMaharashtra. Councelling for farmers in Vidharbha: • The bank has taken its social responsibility seriously. Its objective is the empowerment of rural women through the medium of Self help groups. Amravati. Satara. • Various Rural Entrepreneurship Development Programmes and Entrepreneurship Development Programmes courses are conducted through 3 M-SETI centres at Pune. It is the only NGO which not only guides SHGs intaking up income generating activities but also markets the products of SHG . Aurangabad and Nagpur. the bank has taken innovative steps to bring the farmers into the formal banking sector and stem the depressive trend • In its endeavour to provide counselling to the farmers in Vidharbha region. Out of which. Insurance of SHG members 4.e Pune. specially from rural areas. Thane and Jalna .CSR activities: Mahabank Self Employment Training Institute( M-SETI) • M-SETI was established in December 2001 under the aegis of MARDEF with a view to fostering entrepreneurship skill development for educated unemployed youths. nuturing self help groups covering over 1 lakh women. Yeotmal and Buldhana Districts have so far been given training under this programme. The trust has the following thrust areas of work. Educating of SHG members 3. • The bank. in association with the NGO. The programme educates farmers not to depend on a single crop but also encourages them to take up some ancillary activities. Gramin Mahila Va Balak Vikas Mandal( GMBVM) • Gramin Mahila Va Balak Vikas Mandal is a Trust sponsored by the bank in 1989. on various matters. 8974 SHGs are credit linked through branches of bank. Bank of Maharashtra thought of going beyond extending financial assistance to them. and it came out with an idea of providing technical inputs to farmers in the drought-affected Vidharbha region. Today GMBVM is working in 5 lead districts of Bank of Maharashtra i. Training in all activities to become a successful SHG 5. 1. 44    . Credit linkages with banks Upto 31st March ’08 GMBVM has formed 15739 SHG s and credit liked 13175 SHGs . numbering around 100 to 150 in batch. Pune to run an emporium called ‘SAVITREE’ 2.

” BoM Chairman and Managing Director Allen Pereira said at a press conference on Thursday 14th may 2009. the bank is implementing the 13-point action plan in letter and spirit.1469 crores covering 167327 women borrowers as on march ’08. in the near future. plans to add 26 new branches to its present tally of 1.. Speaking at the FICCI Banking Conclave 2009.110000 cr. “During the present financial year. education . The total credit extended to women beneficiaries amounted to rs. To be everyone bank for every banking need. 100% coverage under CBS of all branches.75 villages to be adopted for basic sanitation .422. Rural Development Centre: • The bank has established Mahabank Agricultural research and rural Development Foundation in 1980 for supporting farmers by providing credit plus services along with extension services. crop production. A branch network of more than 1500 branches by 31st march 2010 75 new ATMs to be added to existing network of 345 atms To have 7500 SHGs credit linked. Pereira said 45    .the Year of Women. besides conserving energy and water. Snapshots from Press Conferences with BoM Chairman and Managing Director Allen Pereira: “We plan to cross Rs 1lakh crore business during the 2009-10 financial year. The growth will predominently come from the 20 per cent projected rise in credits. • The centres are implementing various developmental programmes like soil reclamation. technical support.health . The bank. organic farming and activity specific training programmes through NABARD and other agencies. operational research and development in the field of agriculture. During the jubilee year. • Considering the need for upgrading the technology adoption in agriculture and allied activities and to educate farmers for improving productivity the bank has established 2 rural development centres one at Hadapsar and another at Bhigwan way back in 1984. we will apply for additional 70 to 80 new branch licenses. Targeting to achieve a total business of rs. Future Plans • • • • • • • • The bank will step into its 75h year of the service on 16th sept 2009.Women Empowerment: Ever since 2001.” he stated.

he said that the bank is eyeing credit growth of 20 per cent and deposit growth of 18 per cent.“ The bank had approached the government for providing Rs 500 crore per year for the next three years. For the current fiscal. He said that government holding in the bank is 76 per cent. which could go down to 51 per cent. He said that the bank is targeting gross NPAs of two per cent for the fiscal and net interest margin of 2.” 46    .7 per cent.

(34 countries . launched the Banks Golden Jubilee celebration. 1978 : The then Hon’ble Prime Minister of india Shiri. 1946: Executor And Trustee Company formed.1969 ) 1969 : 153 Branches & Total of Rs 152 crore .36 bank ). 1957 : First Staff Training Centre Setup. 1980 : 500th branch of the bank at Nariman Point Mumbai Inaugurated by the late Smt. ]1958 : Listed on Bombay Stock Exchange. : Appointed as Convenor to the state level Bankers committee. 1976 : Sponsored “Marathwada Gramin Bank” RRB With Headquarters at Nanded. Morarji Desai inaugurated the new head office building at ‘Lokmangul’.Manmohan Singh the then Governor Reserve Bank Of india.Milestones : 1936: February 8 – Commenced Business 1944: Recognised as a Schedule Bank 1945: Deposits crossed Rs. 1970 : Deposit base crossed Rs 100 Crore Mark. 1960 : Licensed to deal in all Foreign Currencies. 1984 : Dr.the then Prime minister of india .00 Crore Mark. Post – Nationalisation ( 19. 1. 47    .07.Indira Gandhi. 1981 : “Aurangabad – Jalana Gramin Bank 2nd RRB commenced operation.

000 Crores.pune . 1996 : Bank’s Diamond Jubilee Celebration launched. Pune. 1988 : First overseas branch opened at Mumbai. By The then RBI Governer Dr. 2007 : won “Rajbhasha Puraskar ” from Reserve Bank of India in “Bilingual House Magazines Compititions for the Years (2005-2006). C.Hon’ble President of India. : Won Best Perfomance Award from NABARD for 2006-2007 for SHG Formation & Credit linkage : Smt.1986 : “Thane Gramin Bank “3rd RRB commenced operation.072 Crores . 1991 : Entry in Credit Card business – Bank of Maharashtra india card (Master Card ). 48    . Total Net Worth of Rs 1749. Rangarajan 2004 : Maiden Equity Issues of the Bank’s shares. : 1st CBS branch rolled out on 13th November at Karve Nagar .39.87. 2009 : 1421 Branches. 1987 : 1000th Branch open at indira Vasahat . 2008 : The bank received Indira Gandhi Rajbhusha Puraskar for the year 2006 – 07 for SHG formation & credit linkage.345 ATMs Total Business rs. 2006 : Visa Debit card launched : commenced Bancassurance business : Commenced distribution of Mutul Fund Products. Awards ‘Best Bank award for Solar Water Heating Programme (2002-2007 To Bank of Maharashtra. : Surpassed business landmark of rs :50. : Acquired 9% stake in global trade finance private Ltd.More then 750 branches under CBS covering 88% Of Business. Pratibha Devi Singh Patil .

Successive leadership of the Bank and the employees have endeavoured to fulfil their vision. “One Family .One Bank” has been truly imbibed in their culture. Matching up with the technological pace will make the bank competent in front of the new generation banks. 87. It can perhaps. More techo-savy bank and further advancements in technologies such as internet banking and mobile banking can attract the younger segment of population. The total business grew to Rs. Their vision was to reach out and serve the comman man and meet all their working needs.Suggestions and Conclusions Today.072 crores in 2009 and still has a large scope for business development. Bank of Maharashtra has over 12 million customers across the length and breadth of the country served through a network of 1428 branches in 22 states and 2 union territories – a truly pan India bank. The soaring heights have only sky as the limit. The very first opportunity lies in dropping and breaking through its regional image. 49    . increase its network of branches outside Maharashtra. Bank of Maharashtra is very much in a position to adopt aggressive strategies such as acquisition of smaller private sector banks can be adopted for Bank’s expansion.