Operations Management Mini Project

Team Members Alagammai .R Nimmi Georrianna .E.W Pragruthaa Varshini .R Rizwan Asif.S Swarnapriya .T Sriram .M

At IDBI Bank K.K Nagar Branch Madurai 625020

Contents
Introduction of the Bank Vision History of the Bank Profile of the Bank Management and Organization Products Layout of the retail asset unit of the bank Layout diagram of Retail Asset Center- IDBI Bank Process flow diagram (Retail Asset Center) Conclusion

Objectives

Introduction
IDBI Bank Ltd is a Universal Bank with its operation driven by the edge core Banking IT platform The bank offers personalized banking and financial solutions to its clients in the retail and corporate banking arena through its large network of branches and ATM s, spread across length and breadth of India The bank has also set up an overseas branch at Dubai and has plans to open representative offices in various other parts of the Globe, for encashing emerging global opportunities As on March 31, 2011, the bank has a network of 61 branches and 172 ATMs The bank s total business, during the financial year 2010-11 reached Rs.3,37,584 crore, balance sheet reached Rs.2,53,377 crore while it earned a net profit of Rs.1650 crore (up by 60%).

Vision
The vision of the bank is to be a trusted partner in progress by levering quality human capital and setting goal standards of excellence, to build the most valued financial conglomerate Its experience of the financial markets helps it to effectively cope with challenges and capitalize on the emerging opportunities by participating effectively in our country s growth progress

History
Industrial Development Bank of India Industrial Development Bank of India (IDBI) was constructed under Industrial Development bank of India Act, 1964 as a Development Financial Institution and came into being on July 1, 1964 GoI notification dated June 1964 It was regarded as a Public Financial Institution in terms of the provisions of Section 4A of the Companies Act, 1956. It continued to serve as a FDI for 40 years till the year 2004 when it was transformed into a bank

Industrial Development Bank of India Limited

In response to the felt need and on commercial prudence, it was decided to transform IDBI into a bank For the purpose, Industrial Development Bank (transfer of undertaking and Repeal) Act, 2003 was passed repealing the Industrial Development Bank of India Act, 1964 In terms of the provisions of the Repeal Act, a new company under the name of Industrial Development Bank of India Limited (IDBI Ltd) was incorporated as a government company under the Companies Act, 1956 on September 27, 2004 Therefore, the undertaking of the IDBI was transferred to and vested in IDBI Ltd. with effect from the effective date of October 1, 2004. In terms of the provisions of the Repeal Act, IDBI Ltd has been functioning as a banking addition to its earlier role of Financial Institution

Merger of IDBI bank Ltd with IDBI Ltd

Towards achieving the faster inorganic growth the bank, IDBI Ltd., a wholly owned subsidiary of IDBI Ltd was amalgamated with IDBI Ltd In terms of the provisions of Section 44A of the Banking Regulations Act, 1949 providing for voluntary amalgamation of two banking companies. The merger became effective from April 2, 2005

Merger of United Western bank with IDBI Ltd

The United Western bank Ltd. (UWB), a Sastara based private sector bank was placed under memorandum by RBI Upon IDBI Ltd. showing interest to take over the bank towards the further inorganic growth, RBI and Government of India amalgamated UWB with IDBI Ltd In terms of the provisions of Section 45 of the Banking Regulation Act, 1949. The merger came into effect on October 3, 2006

Profile
IDBI Bank Ltd is today s India s largest commercial Banks For over 40 years, IDBI Bank has essayed a key nationbuilding role, first as the apex Development Financial Institution (DFI) (July 1,1964 to September 30,2004) in the realm of industry and thereafter as a full-service commercial bank (October 1,2004 onwards) As a DFI the erstwhile IDBI stretched its canvas beyond mere project financing to cover an array of services that contributed towards balanced geographical spread of industries, development of identified backward development areas, emergence of a new spirit of enterprise and evaluation of a deep and vibrant capital market

 NAME : IDBI Bank TYPE : Commercial bank INDUSTRY : Banking and financial services HEADQUARTERS : Mumbai ESTABLISHED IN : July 1964 Chairman & Managing Director : Mr. R.M Malla SERVICES : Development Financial Institution (FDI) providing personal loans and financial solutions DOMAIN : Core banking and Project finance TOTAL BRANCHES : 923 TOTAL ATM S : 1372 As on march 31, 2011 : BUSINESS SIZE Rs.3.38 lakh crore (deposits plus advances) BALANCE SHEET Rs.2.53 lakh crore

PRODUCTS
Loans Deposits Net banking Online tax payment Mobile banking Debit cards SME finance Agriculture finance

Divisions
Sales Operations Credit Collection

Sales
The sales division will have direct sales agency team which will have a tie up with agencies like housing loan, mortgage loan with collateral, etc., This function of the sales team is to get hold of customers In IDBI, this team consist of 15 members who have good experience from financial institutions and in case of NRI s they have self-employed nonprofessionals They advertise or get to inform people through pamphlets, scrolling, and audits etc and these are actually the networks through which they get to know people Agents working there will get some part as commission and if an agent gets a customer who deals with a worth of Rs. 20,00,000 , he can easily take home a commission of 2% In case of workers and regular employees they get only salaries and when any additional work is done by them, they get incentives and the agents will get paid more than the employees Agents don t have any targets They are paid based on the amount they get whereas the employees should work with fixed targets

Operations
The operation division will perform those activities like facing the customers, fulfilling the formalities, following them and by answering the queries The payment to the customer, issuing of cheques are all monitored here For more than a decade the bank uses the software, finnacle, which was developed by Infosys

Credit
The main function of the credit section is to analyze the portfolios and statements of the individuals who have applied for loan They perform the field investigation in order to know the worth of the property and intern provides reports to the bank They also check if the loan enquirer is capable of paying back the loan by checking the credibility of the customer They verify the financial statements of the last 3 month and the details of the company in which the customer has worked for the past 2 years

Collection
In case of any damage to the building or if the building is destroyed by any governmental reasons or in case of any loss to the company, the responsibility of collecting the loan lies with this group In some special cases, managers from IDBI themselves go to verify the site. The report is sent to the customer and it is finally their wish to either accept or reject it,if accepted the agreement is filled In order to get the loan for constructing new building, estimate copy of the cost and the plan approval is required, loan against a property is called as mortgage loan It is like pledging the property to the bank and getting the loan through EMI. In case of non-repayment of loan, a tender notice is provided and after 90 days of the tender notice, the property is put for auction if still the loan is unpaid. Under mortgage loan, there are no tax benefits The rate for the educational loan varies from 12.75 to 13.75%. for Indian study the maximum amount is Rs.10,00,000 and for foreign study the maximum amount is Rs.20,00,000. There is no need of any collateral or guarantee for up to Rs.4,00,000

CONCLUSION
Thus we have successfully studied the basic operations of the bank As a part of operations management we had a complete understanding on how the retail asset center works

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