final report
TRANSCRIPT
Chapter 1
Profile of the Firm/Company
1
INTRODUCTION
What is a bank?
Bank is defined as an institution for the keeping, landing and exchanging etc. of
money. Economists have also defined a bank highlighting its various functions.
According to Crowther, the banker business is to take the debt of other people to offer
his own in exchange and thereby create money.” Thus a bank is an institution that
accepts deposits from the public in turn advances loans by creating credit.
It is different from other financial institutions in that they cannot create credit though
they may be accepting deposits and making advances.
TYPES OF BANKS:
Commercial banks : are those banks which perform all kinds of banking functional
such as accepting deposits, advancing loan, cr.creation and agency functions. They
are also called joint stock banks as they are organized in the same manner as joint
stock companies. They usually advance short term loans to customers some of
commercial banks in India are Andhra Bank, Canara Bank, Indian Bank, PNB etc.
Exchange banks: are those banks, which deal in foreign exchange and specialize in
financing trade. They are called foreign exchange banks. In India these exchange
banks have their head offices located outside India. These banks also render other
services such as collecting and supplying information about the foreign customers
providing remittance facilities etc. such as chartered bank, Gridlays bank.
2
Industrial banks : are those banks, which provide medium term and long-term
finance for industries for the purchase of land, machinery, etc. They underwrite the
debenture and shares of industries and also subscribe to them such as industrial
development bank of India, industrial finance corporation of India etc.
Agricultural banks: are those banks, which provide cr. To farmers for short term,
medium term and long term needs. In India, commercial banks, regional rural banks
and agricultural co-operative banks provide short-term loans to farmers. Such as
national bank for agriculture and rural development, NABARD.
Cooperative banks : are those financial institutions, which are organized on the
principle of cooperation. They provide short term, medium term loans to their
members. In rural area there are agriculture cooperative banks, which are also
cooperative banks, which perform the function of ordinary commercial banks but give
loan to their members only. They also get funds from the RBI. There is a state
cooperative bank in every state of India with its branches at the district level known as
the central cooperative banks.
Saving banks: help promote small saving and mobilize them. They have been very
successful in Japan and Germany. In India post office act as saving bank.
Central banks: is the apex bank, in a country, which controls its monetary, and
banking structure. It is owned by the govt. of the country and operates in national
interest. It regulates and issues currency, performs banking and a agency services for
the state, keeps cash reserves of commercial banks, keeps and manages international
currency, act as the lender of the last resort, acts as the clearing house and controls of
credit. The RBI is the central bank in India.
3
Banking System
The Banking system is an integral Sub system of the financial system. It represents an
important channel of connecting small savings from the households and lending it to
the corporate sector.
The Indian Banking system has the Reserve Bank of India (RBI) as the apex body for
all matters relating to the banking system. It is the ‘Central Bank’ of India. It is the
banker to all other banks.
Functions of RBI:
1. Currency issuing authority.
2. Banker to the Government
3. Banker to other banks
4. Framing of monetary policy
5. Exchange control
6. Custodian of foreign exchange and gold reserves
7. Development activities
8. Research and Development in the banking sector.
4
Following is the classification of banks:
1. Non scheduled Banks:
These are banks which are not included in the second schedule of the Banking
Regulation Act, 196. It means they do not satisfy the conditions laid down by that
schedule. They are further classified as follows:
Central Co-operative Banks & Primary Credit Societies.
Commercial Banks
2. Scheduled Banks:
Scheduled Banks are banks which are included in the second schedule of the Banking
Regulation Act, 1965. According to this schedule a scheduled bank.
Must have paid up capital reserve of not less than Rs. 5,00,000/-
Must also satisfy the RBI that its affairs are not conducted in a manner detrimental to
the interest of its depositors.
Scheduled banks are sub divided as:
1. State co-operative Banks:
These are co-operative owned and managed by the state.
2. Commercial banks:
These are business entities whose main business is accepting deposits and extending
loans. Their main objective is profit maximization and adding shareholder value.
5
Banking system in India
The banking system is an integral sub-system of the financial system. It represents an
important channel of collecting small saving from the households and lending it to the
corporate sector.
The Indian banking system has the RBI as the apex body for all matters relating to the
banking system. It is the ‘central bank’ of India. It is the bankers to all other banks.
Functions of RBI:
1. Currency issuing authority.
2. Banker to the government.
3. Banker to other banks.
4. Framing of monetary policy.
5. Exchange control.
6. Custodian to foreign exchange and gold reserves.
7. Development activities.
8. Research and development in the banking sector.
Banking Industry in India has always revolved around the traditional function of
deposits and credit. Their role had been defined as to assist the overall economic
growth with majority of share being controlled by the Government of India in most of
the banks. But with the process of liberalization, and the technological revolution the
banking industry has also undergone tremendous change in the last 5 years. The
market, which was largely controlled by the public sector banks, has now been facing
6
stiff competition not only from foreign players but also from the new generation
private sector banks. The rules of the game have been changing with the RBI
introducing new norms to make banks more accountable and to adopt the practices
followed worldwide.
Most of the banks have now been trying to function on the concept of a Universal
Bank. Apart from the traditional functions of a commercial bank, they are taking steps
to build themselves into a one stop financial centre wherein all the financial products
would be available. Banks have started catering to the retail segment to improve their
deposit portfolio. In order to have a maximum share in this segment, most of the
banks have been introducing new products. The delivery channels have also been
shifted from branches to ATMs, phone banking, net banking etc.
Banks traditionally involved in working capital financing have started offering
consumer loans and housing loans. Some of the banks have started offering travel
loans as well. Retail financing is the other area where the banks have started to
concentrate. The loan formalities too have been relaxed to a great extent and
sanctioning time has been speeded up Structure of Indian Banking Industry.
7
STRUCTURE OF THE BANKING INDUSTRY
Figure1
Bank of Maharashtra
8
Type Public
BSE & NSE:MAHABANK}
Industry Banking
Capital Markets and allied industries
Founded 1935
Headquarters Bank of Maharashtra,Lokmangal,Shivajinagar
Pune, India
Key people SHRI A.S. BHATTACHARYA , Chairman
Products Loans, Credit Cards, Savings, Investment vehicles etc.
Revenue 6,093.94 crore (US$1.36 billion)
Total assets Rs. 481 bn
Website www.bankofmaharashtra.in
Figure 2
Company Profile
9
Bank of Maharashtra is a public sector bank. It operates in five segments. Treasury
segment includes investment, balances with banks outside India, interest accrued on
investments and related income therefrom. Corporate/ Whole sale Banking Segments
include all advances to trusts, partnership firms, companies and statutory bodies
which are not included in Retail Banking Segments. Retail Banking Segments include
exposure to the individual person/ persons or to a small business. Other Banking
Operations segment includes all other banking transaction. During the fiscal year
ended March 31, 2011 (fiscal 2011), the Bank opened 83 new branches. As of March
31, 2011, the total branch network consisted of 1,536 branches. The branch network
includes specialized branches of foreign exchange, government business, treasury and
international banking, industrial finance, hi-tech agriculture, pension payment,
pension processing, retail credit, self help group and asset recovery.
Renowned for promoting small businesses, Bank of Maharashtra is known as
common man's bank. Working on the motto of Technology with Personal Touch,
Bank of Maharashtra is catering to a large number of people across all strata of
society.
The Bank of Maharashtra has incorporated the latest technology to provide best
services to its customers. This public sector bank with largest network in Maharashtra
Hopes to reduce net NPA level to below 1% .
H ead O ffice / C entral Office :
10
Address: Bank of Maharashtra
Central Office, 'Lokmangal',
1501, Shivajinagar Pune-411005
Telephone Numbers : 020 - 25532731, 733, 734, 735, 736
020 - 25532728
020 - 25514501 - 12
020 - 25513781
Branches of Bank of Maharashtra in Delhi:
Branch Name Address
BaprolaOpp Talab Village, Baprola, Nangloi, Najafgarh Road,
New Delhi
Dayanand Vihar 12, Dayanand Vihar, New Delhi -110092
Asaf Ali Road Horchest House, 3/1 Asaf Ali Road , New Delhi 110001
Chandani Chowk 1899, Ist Floor, Chandani Chowk, Delhi 110006
Connaught PlaceMaharashtra Bank Building, B-29, Connaught Place
Delhi 110001
Dr Mukherjee NagarB-9/10, Main Road, Commercial Complex, Dr
Mukherjee Nagar, Delhi
East Patel Nagar 828/6, East Patel Nagar, Delhi 110005
Greater Kailash M-16, Greater Kailash II, K Block Market, Delhi 110048
Janak Puri 22-23, Institutional Area, D- Block Janak Puri, Delhi
11
Karol Bagh 5/36, W E A, Karol Bagh, New Delhi 110005
Preet ViharF-12, Dashmesh Niwas, Vikas Marg, Preet Vihar, Delhi
110092
Delhi Service Branch6/44 W E A, Ajmal Khan Road, Karol Bagh, Delhi
110005
Delhi UPSC Dholpur House, Shahajahan Road, UPSC, Delhi 110011
DwarkaAntariksha Plaza, Plot No. 2, Sector 10, MLU Dwarka,
New Delhi
Paschim Vihar 10/401, Sunder Vihar, Paschim Vihar, Delhi 110087
Pushpanjali EnclaveA-26, Pushpanjali Enclave, Pitampura, New Delhi
110034
Rohini, DelhiGarg Trade Center, Community Center, Sector II,
Rohini, Delhi 110085
Figure 3
History of the organisation
12
The Beginning…
Maharashtra has a long history of commercial
activity since ages because of its strategic
location in Indian sub continent and its large
natural resources.
Maharashtra has been a progressive region and
the Banking activity was also started in this
region quite early. Historically speaking, the
Bank of Bombay established in 1840 was the
first Commercial Bank in Maharashtra.
However, the first commercial bank set up in
Maharashtra outside Mumbai was The Poona
Bank established in 1889 at Pune followed by
The Deccan Bank in 1890 and the Bombay
Banking Company in 1898.
Outbreak of the First World War leading to
great depression took a heavy toll on banks in
India. Between 1914 and 1935 as many as
380 banks failed in the country out of which
54 were based in Bombay province. The
impact of these failures was felt more in
Maharashtra region because certain banks
known for a long time were also closed down.
The effects of great depression started fading
and new enterprises began emerging with
new hopes in all spheres of economy,
including banking.
Need felt for an Independent Bank for Maharashtra
The Mahratta Chamber of Commerce (MCC)
was established in Poona in 1934 and its
Founder Secretary Shri A.R.Bhat was a great
visionary.
Shri Bhat initiated for a comprehensive review
of banking services available in the region
through the special issue of Kesari news paper
released in memory of Lokmanya Tilak within a
few months of establishment of MCC. He
ensured that his friend, Shri V. P.Varde,
considered as a doyen of co-operative
movement, wrote an article on the necessity of
a separate bank for Maharashtra, thus
The Swadeshi movement of the first decade of
the 20th Century gave stimulus to the
establishment of a number of commercial
banks under Indian Management in
Maharashtra.
The MCC formed a sub-committee consisting
of Sarvashri V.G.Kale, D.K.Sathe, N.G.Pawar,
G.D.Apte and A.R.Bhat to work out the details.
The first meeting of the committee was held
on 19 May 1935 in the conference room of the
Kesari Mahratta office and besides the
committee members, prominent personalities
13
launching a public discussion on the subject.
While there was no noticeable response to the
article of Shri Varde, Shri A R Bhat kept on
discussing the subject with leaders in Trade
and Industry.
Shri Bhat ensured that Mahratta Chamber and
its Directors took up the issue and held a
Conference on Business and Industry in Poona
on behalf of the MCC in February1935.
Shri Bhat pushed the proposal for formation of
a bank and succeeded in getting the following
resolution adopted by the conference:
"For providing capital to the trade and
industry in Maharashtra, it is essential to
establish a Joint Stock commercial bank.
The Mahratta Chamber is, therefore,
requested to make all the necessary
enquiries in that behalf and take
appropriate steps for floating such a
bank. The business community in
Maharashtra is urged to support such an
effort. "
from the City like Shri Babasaheb Kamat, the
then President of the MCCI, J S.Karandikar,
Rajabhau Godbole, Govindrao Pandit,
Damuanna Potdar, S.R.Sardesai, Baburao
Gokhale, and N.N. Kshirsagar among others
participated in deliberations.
Another meeting of the sub committee with
wider public representation was followed on
27 May 1935 in the meeting hall of Kesari
Mahratta office and decisions on matters like
the number of Directors on the Board of the
proposed bank (maximum to be 11 members),
Amount of each share (to be Rs.50/-) and
primary condition for becoming a Director (to
hold a minimum of 500 shares) were taken.
14
The Bank was formally registered under the Indian Companies Act, on the auspicious
day of 16 September 1935.
The Memorandum and Articles of the Bank were signed by following 19 promoters
(Sarvashri)
Board of Directors Others
1. Prof.V G Kale 1. A R Bhat
2. D K Sathe 2. S M Joshi
3. B M Gupte 3. B S Kamat
4. N. G. Pawar 4. S R Rajguru
5. V T Ranade 5. R N Abhyankar
6. V P Varde 6. T V Sane
7. M R Joshi 7. D G Bapat
8. S G Marathe 8. G S Marathe
9. Raghunathrao Sohoni 9. D D Chitale
10. D V Potdar
15
Witness Signatory: Shri G D Apte
The first Board of Directors of The Bank of Maharashtra Ltd was constituted with following
members.
1. Prof.V G Kale, an ex-member of Indian Tariff Board and a reputed economist and
educationist of old generation.
2. Shri D K Sathe, a businessman and a prominent social worker and had experience of Co-
operative banking.
3. Shri B M Gupte, Chairman of the Poona Central Co-operative Bank.
4. Shri N. G. Pawar, Engineer and Contractor
5. Shri V T Ranade, of M/s.V R Ranade and Sons a leading firm of Engineers and
Contractors
6. Shri V P Varde, a leading figure in the co-operative movement and who provided major
impetus to the move.
7. Shri M R Joshi, a leading paper merchant from Pune.
8. Shri S G alias Annasaheb Marathe of M/s.V R Ranade and Sons.
9. Shri Raghunathrao Sohoni, a leading merchant who had initially moved the resolution of
16
formation of the Bank for Maharashtra.
Figure 4
Bank of Maharashtra was registered on 16th September 1935 and commenced
operations on February 1936 in Pune. It was in 1944, when BOM obtained the status
of schedule bank in which RBI gives the status of schedule bank to those whose paid
capital and collected funds of bank are not less than Rs. 5 lac and bank’s activity
should not adversely affect the interests of depositors. Every schedule bank enjoys the
eligibility for debts/loans on bank rate from the RBI and acquires the membership of
clearing house.
Some of the milestones for bank are:
1996: BOM obtained autonomy and moved into “A” category from the earlier
“C” category.
2000: Deposits crossed Rs 10,000 crore marks.
2004: Initial public offer (IPO) launched and public owned 24% share of
BOM.
2005: Bank diversified its business with launch of Bancassurance (an
insurance) & mutual fund distribution.
2006: Total business crossed Rs 50, 000 crore and implementation of core
banking Solution (CBS) in branch started.
2010: completion of CBS project with all branch covered under CBS. Same
time total business crossed Rs one lakh crore.
17
Outlook of Bank of Maharashtra
1. Business:BOM registered a year on year growth of 19.71 % and hence total business
stood at Rs 1, 04,230 crore from Rs 87, 072 crore which was on 31st march 2009.
2. Deposits: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 %. This
deposits are considered low cost deposits as for current account bank pay no interest
and for saving its very minimal compared to fixed deposits, where avg. interest is more
than 6-7%.
3. Advances:There is a rise of 17.55 % in gross advances. It increased to Rs 40, 926 crore in
2010 against Rs 34,817 an increased by Rs 6, 109 crore in 2009-10 FY.
4. Sectorial Deployment of credit:The bank has maintain a diversified credit
portfolio and adhered to guideline of RBI for credit deployment to priority sectors.
Below table gives the glimpse of BOM deployment of credit to different sector
and contribution of each sector in over all credit deployed as on 31st march 2010.
Sr.
No.
Credit deployed 31.03.2010
Outstanding (Rs in crore)
% to total credit
outstanding
1. Industry 13, 655.60 33.37
i. Infrastructure 7308.48 17.86
ii. Chemicals, dyes,
paints etc
566.86 1.39
18
iii. Petroleum 683.74 1.67
iv. Iron & steel 170.62 0.42
v. Textiles 823.63 2.01
vi. Engineering 3353.64 8.19
vii. Other Industries 748.61 1.83
2. Agriculture 6249.98 15.27
3. Micro, small and medium
enterprise (MSME)
4069.41 9.94
4. Other priority sectors 4282.64 10.46
5. Retail sector 4942.37 12.08
6. Housing 3627.27 8.86
7. Education 430.02 1.05
8. Exports 1088.32 2.66
9. Commercial real estate 1122.51 2.74
Table 1
19
5. Asset performance:
Non performing assets (NPA) recovery has improved in 2010 with Rs 254.27
crore compared to Rs 210.53 crore in 2009 which is rise in 21% in total cash
collection in respect of NPAs. This has been possible due to intensive follow up
with defaulting borrowers for recovery of dues.
6. Investments:
Bank has net investment of Rs 21, 324 crore in FY 2009-10 compared to Rs
18, 382 in FY 2008-09, an increase of 16%.
BOM received net interest of Rs 1, 297.90 crore in FY 2009-10 compared to
Rs 989.84 crore during last financial year.
77.94 % of the investment portfolio was held under Held to Maturity (HTM)
category, 22.05 % in Available for sales
7. Borrowings:Total borrowing of bank as on 31th march 2010 is Rs 129.45 crore
which include Rs 61.47 availed from NABARD and SIDBI for refinancing. Total
borrowings were Rs 190.01 crore as on 31st march 2009.
8. Income for Bank of Maharashtra:
Non interest income: bank posted Rs 591.24 crore as non-interest income
during 2009-10 an increase of 18.24 % from previous year. Bank has
focused to earn non-interest income by looking into new avenues such as
mutual fund distribution, insurance acting as corporate agent for LIC &
20
united insurance and from government business. Bank has introduces
online share trading to boost its non-interest income.
Merchant Banking: During FY 2009-10, bank handled 69 issues of commercial
paper amounting to Rs 12, 120.10 crore for its clients as an issuing agent and
hence earned an income of Rs 28.02 lakh as commission.
Bancassurance business:
Bancassurance business consist of selling of life insurance policy for L.I.C
, non-life insurance policy for United insurance and distribution of mutual
fund products on behalf of The income earned under bancassurance in FY
2009-10 is Rs. 4.48 crore.
Table 2
9. Branch Network and expansion:
Sr. No. Classification As on 31st march 2009 As on 31st march 2010
1. Rural 520 526
2. Semi-urban 262 266
3. Urban 271 281
4. metropolitan 368 380
21
S. N. Nature of Income Amount (RS. In crore)
1. For selling life insurance policies 2.31
2. For selling non-life insurance policies 2.02
3. For selling mutual fund products 0.15
Total 1421 1453
Table 3
During financial year 2009-10, Bank of Maharashtra has opened 33 new branches and
hence total branch increased to 1453. Bank has specialized branches for foreign
exchange, government business, treasury & international banking, MSME and
industrial finance etc. The bank has licence for opening 79 new branches including 7
branches in North-East states.
10. Some Key indicators:
Particulars 2008-09 2009-10
Profit per branch (Rs in lakh) 26.40 30.25
Profit per employee (Rs in lakh) 2.75 3.21
Business per branch (Rs in crore) 61.28 71.73
Business per employee (Rs in crore) 6.39 7.62
Interest income as % to average working funds 8.29 7.50
Non-interest income as % to average working funds 0.97 0.94
Interest spread as % to average working funds 2.43 2.05
Operating profit as % to average working funds 1.53 1.29
Staff expenses to average working funds 1.12 1.04
Table 4
22
11. Capital
Items As on 31.03.2010 As on 31.03.2009
i) CRAR %
Basel - I 11.33 10.75
Basel - II 12.78 12.05
ii) CRAR- Tier I Capital %
Basel - I 5.68 5.45
Basel - II 6.41 6.11
iii) CRAR- Tier II Capital %
Basel - I 5.65 5.30
Basel - II 6.37 5.94
iv) Percentage of the shareholding of the
Government of India
76.77 76.77
Table 5
23
12. Performance of Bank of Maharashtra:
Parameters March-2009 March-2010 CAGR %
Operating profit 593.71 608.74 2.51 %
Net profit 361.71 439.48 21.5 %
Deposits 52, 254.92 63, 304.07 21.14%
Advances 34,290.77 40,314.70 17.57%
Total Business 86545.69 103618.77
Table 6
Board of Directors
Shri Anup Sankar Bhattacharya( Chairman and Managing Director)
Shri M.G Sanghvi( Executive Director)
Shri. V. P. Bhardwaj
Ms. Kamala Rajan
Shri. A. K. Pandit
Dr. D. S. Patel
Dr. S. U. Deshpande
Shri. S. D. Dhanak
Dr. Naresh Kumar
Shri. Ramesh C. Agrawal
24
MISSION AND VISION
Vision of the organization:
To be a vibrant, forward looking, techno-savvy, customer centric bank serving diverse
sections of the society, enhancing share holders' and employees value while moving
towards global presence.
Mission of the organization:
To ensure quick and efficient response to customer expectations.
To innovate products and services to cater to diverse sections of society.
To adopt latest technology on a continuous basis. To build proactive
professional and involved workforce.
To enhance the shareholders’ wealth through best practices and corporate
governance.
To enter international arena through branch network.
To be a vibrant, forward looking, techno-savvy, customer centric bank serving
diverse sections of the society, enhancing shareholders' and employees' value
while moving towards global presence.
25
The autonomy:
The Bank attained autonomous status in 1998. It helps in giving more and more
services with simplified procedures without intervention of Government.
Social aspect:
The bank excels in Social Banking, overlooking the profit aspect; it has a good share
of Priority sector lending having 38% of its branches in rural areas.
Other attributes:
Bank is the convener of State level Bankers committee. Bank offers Depository
services and Demat facilities at 131 branches. Bank has a tie up with LIC of India and
United India Insurance company for sale of Insurance policies. All the branches of the
Bank are fully computerised.
Company snapshot:
Key Ratios
Mar-11 Mar-10 Mar-09
P/E (x) 10.22 5.03 2.45
P/BV (x) 0.97 0.89 0.43
RONW (%) 11.3 19.7 19.6
ROCE (%) 0.0 0.0 0.0
EV/ EVBIDTA (x) 16.97 15.07 14.16
Dividend Yield (%) 4.1 4.1 4.1
APATM(%) 0.0 0.0 0.0
EPS 5.8 9.9 8.5
Figure 5
26
Shareholding Pattern
ParticularsNo. of
Shares(Mn)
%
Holding
s
Total Promoter Holdings 381.71 79.2
Total Govt Holding (Promoter + Non Promoter) 0.00 0.0
Total Domestic Institutions (Banks/ FI + MF / UTI) 42.22 8.8
Total Foreign Holdings (FII+NRI holdings) 5.72 1.2
Total Non Promoter Corporate Holdings 7.05 1.5
Total Public & Others (Individuals + HUF + Clearing members) 45.02 9.3
Total 481.71 100
Figure 6
Range of products and services:
Personal Loans
Car Loans
Two Wheeler Loans
Commercial Vehicle Loans
Loans Against Securities
Farm Equipment Loans
Construction Equipment Loans
Office Equipment Loans
Medical Equipment Loans
Home loan
27
Bank of Maharashtra Internet Banking
The Internet Banking service provided by Bank of Maharashtra is referred to as
Mahaconnect by the bank. Bank of Maharashtra provides 24 hours access to banking
services and financial transactions to the customers who can enjoy these facilities
from the comfort of their home. Mahaconnect has become widely popular among
Bank of Maharashtra customers as it provides great flexibility for carrying out
banking transactions.
Mahaconnect has gradually transformed from “nice to have” feature to “need to have”
feature for the customers.Mahaconnect is made for all the customers of CBS branches
of Bank of Maharashtra. Thus, customer only needs an active internet connection
along with PC with minimum PII processor, 32 MB RAM, any browser such as
Internet Explorer 5.0 or above for availing the net banking facility.
Mahaconnect Online banking features:
Bank of Maharashtra internet banking or Mahaconnect offers wide array of services to
the customers including most commonly accessed banking features. It has made the
life easier for the customers by offering stress free banking transactions from their
home.
Some of the salient features offered by Bank of Maharashtra online banking are as
follows:
Checking account balance and see previous transactions
Online Transferring of funds between accounts
Check and Print Bank statements for past few months
28
Online payment of taxes
Online Monitoring of accounts activity
Update personal profile like address and phone number
Check the status of the cheques online
Request for new cheques online
Apply for Mahaconnect (Internet Banking):
In order to apply for Mahaconnect Online Banking, customers can visit the site at
“http://www.bankofmaharashtra.in” and download the application form for Online
Banking. The form can also be obtained from the branch.
After completing the application form, it can be submitted to any nearest branch of
the bank. On successful processing of the application, customer will receive User Id,
Login Password and Transaction password. Customer can login to net banking site of
Mahaconnect using the UserID and login password. Once logged in customer can
avail many online banking services offered by Bank and perform various financial
transactions.
The User Id & Passwords for login to the Mahaconnect will be sent to the registered
address of customer with the Bank. Customer should ensure that his current address is
updated in the Bank’s record. It is suggested that new customers should completely
read the general information page so that they will get the idea of using the various
banking services online. It is very easy to conduct all the banking transactions online.
It is useful for those who are unfamiliar with online banking service.
29
Mahaconnect Security Features:
The Mahaconnect or online internet banking service of Bank of Maharashtra is highly
secure and provides hassle free and secure financial transactions. The high level of
security measures ensure that the customer’s account information and online
transactions are well protected. It employs 128-bit encryption codes for encryption of
data so that no one else can view or decipher the online transactions. The presence of
firewalls provides security against any unauthenticated programs. These data security
measures and encryption standards of Bank of Maharashtra are of international
standards.
30
Chapter 2
SWOT Analysis of the Company
31
S.W.O.T. ANALYSIS OF BANK OF MAHARASHTRA
STRENGTHS:
a) Promoters are experienced and qualified professionals.
b) Market driven organization
c) Diversified customer base
d) Limited exposure per client to ensure low risk
e) Low cost of operation
f) Low NPA-level
g) High margin of profit
h.) Public sector undertaking. Thus, has govt. backing
i.) In this area for more than 75 years. Thus, expertise in this field
j.) Very high investments in SLR securities
k.)High connectivity to common man in some parts of the country
l.)Over 1500 branches in 23 states and 2 union territories
WEAKNESSES:
a) Primary securities are not tangible
b) Different to verify the primary security
c) Business activity is in sensitive sector
d) Risk averse
e) Low profitability
f) Increasing NPAs
32
OPPORTUNITIES:
a) Big and diverse market size
b) RuralArea
c) Increasing Non-SLR investments to increase profits
d) Making their credit cards profitable
THREATS:
a) Multinationals, banks and big finance companies are eying on the same market
segment.
b) Government policy and adhoc fiscal policy changes.
c) Competitors
d) New bank licenses
e) Dis-investments by the government
Major Competitors:
1. Bank of India
2. Bank of Madurai
3. Canara Bank
33
Chapter 3
Analysis of Financial Reports of
the Company
34
ANALYSIS OF FINANCIAL REPORTS OF THE COMPANY
Balance sheet of Bank of Maharashtra
Currency in
Millions of Indian Rupees
As of: Mar 31
2008
Restated
INR
Mar 31
2009
INR
Mar 31
2010
Reclassified
INR
Mar 31
2011
INR
Assets
Cash and Equivalents 6,755.5 5,489.6 17,692.7 6,282.7
TOTAL CASH AND SHORT TERM INVESTMENTS 7,904.4 7,865.4 22,416.5 13,820.3
Restricted Cash 35,505.9 35,563.8 49,252.9 34,210.9
Other Current Assets 2,191.0 2,046.3 4,411.3 4,670.4
TOTAL CURRENT ASSETS 48,266.2 49,700.1 80,933.5 57,137.3
Gross Property Plant and Equipment 6,699.5 11,694.2 12,487.8 13,198.7
Accumulated Depreciation -4,494.9 -5,145.9 -5,892.3 -6,530.6
NET PROPERTY PLANT AND EQUIPMENT 2,204.6 6,548.4 6,595.5 6,668.1
Goodwill 72.9 312.7 312.1 223.6
Deferred Tax Assets, Long Term 2,745.2 3,042.9 2,781.4 4,044.5
Other Long-Term Assets 13,758.8 6,659.7 8,587.0 10,394.3
35
TOTAL ASSETS 481,578.3 590,385.5 710,639.7 764,548.3
LIABILITIES & EQUITY
Accrued Expenses 2,199.7 1,765.4 491.9 600.4
Current Income Taxes Payable 1.4 1.7 -- --
Other Current Liabilities, Total 8,836.5 5,077.9 5,156.0 4,409.7
TOTAL CURRENT LIABILITIES 428,565.7529,343.
7638,597.5
673,399.
1
Long-Term Debt 23,667.5 22,575.1 27,969.5 30,765.6
Deferred Tax Liability Non-Current 0.0 -- -- --
Other Non-Current Liabilities 11,456.4 13,205.6 15,399.0 20,540.8
TOTAL LIABILITIES 463,689.6565,124.
5681,966.1
724,705.
5
TOTAL PREFERRED EQUITY -- -- -- 5,880.0
Common Stock 4,305.2 4,305.2 4,305.2 4,817.1
Additional Paid in Capital 1,300.0 1,300.0 1,300.0 4,308.1
Retained Earnings 11,903.9 14,255.6 17,386.7 19,235.8
Comprehensive Income and Other 379.6 5,400.1 5,681.7 5,601.8
TOTAL COMMON EQUITY 17,888.7 25,261.0 28,673.6 33,962.8
TOTAL EQUITY 17,888.7 25,261.0 28,673.6 39,842.8
36
TOTAL LIABILITIES AND EQUITY 481,578.3 590,385.5 710,639.7 764,548.3
Figure 7
Profit & Loss account of Bank of Maharashtra
Currency in
Millions of Indian Rupees
As of: Mar 31
2008
Restated
INR
Mar 31
2009
INR
Mar 31
2010
Reclassified
INR
Mar 31
2011
INR
TOTAL REVENUES 11,668.013,407
.315,134.7
19,801
.9
Cost of Goods Sold 188.6 168.9 -- --
GROSS PROFIT 11,479.413,238
.415,134.7
19,801
.9
Selling General & Admin Expenses, Total 7,207.5 8,564.0 9,647.4 14,948.9
EBT, EXCLUDING UNUSUAL ITEMS 3,298.53,767.
14,396.7
3,348.
0
EBT, INCLUDING UNUSUAL ITEMS 3,298.53,767.
14,396.7
3,348.
0
Earnings from Continuing Operations 3,298.5 3,767.1 4,396.7 3,348.0
37
NET INCOME 3,298.53,767.
14,396.7
3,348.
0
NET INCOME TO COMMON INCLUDING EXTRA ITEMS 3,298.5 3,767.1 4,396.7 3,003.0
NET INCOME TO COMMON EXCLUDING EXTRA ITEMS 3,298.5 3,767.1 4,396.7 3,003.0
Figure 8
Cash Flow of Bank of Maharashtra
Currency in
Millions of Indian Rupees
As of: Mar 31
2008
Restated
INR
Mar 31
2009
INR
Mar 31
2010
Reclassified
INR
Mar 31
2011
INR
NET INCOME 3,298.5 3,767.1 4,396.7 3,348.0
Depreciation & Amortization 687.9 757.7 751.0 678.6
DEPRECIATION & AMORTIZATION, TOTAL 687.9 757.7 751.0 678.6
Other Operating Activities 2,940.3 3,880.8 2,795.8 5,242.6
Change in Other Working Capital -78,044.8 -109,915.5 -95,027.9 -74,688.4
CASH FROM OPERATIONS -71,118.0 -
101,509.
-87,084.5 -
65,419.
38
9 2
Capital Expenditure -977.6 -754.9 -647.7 -861.1
CASH FROM INVESTING -977.6 -754.9 -647.7 -861.1
Long-Term Debt Issued 5,250.0 -- 6,000.0 --
TOTAL DEBT ISSUED 5,250.0 -- 6,000.0 --
Long Term Debt Repaid -- -1,000.0 -- -1,675.0
TOTAL DEBT REPAID -- -1,000.0 -- -1,675.0
Issuance of Common Stock -- -- -- 3,520.0
Common Dividends Paid -1,007.4 -1,007.4 -755.5 --
Common and/or Preferred Dividends Paid -- -- -- -1,007.3
TOTAL DIVIDEND PAID -1,007.4 -1,007.4 -755.5 -1,007.3
Other Financing Activities -1,685.9 -1,906.6 -2,070.8 -2,328.7
CASH FROM FINANCING 80,926.9101,056.
7113,624.5
39,828.
3
NET CHANGE IN CASH 8,831.3 -1,208.1 25,892.2 -26,452.0
Figure 9
Capital Structure (Bank of Maharashtra)
Capital Structure (Bank of Maharashtra)
Period Instrument Authorized Capital Issued Capital - P A I D U P -
39
From To (Rs. cr) (Rs. cr) Shares (nos) Face Value Capital
2010 2011 Equity Share 3000 481.71 481712553 10 481.71
2009 2010 Equity Share 3000 430.52 430520000 10 430.52
2008 2009 Equity Share 1500 430.52 430520000 10 430.52
2007 2008 Equity Share 1500 430.52 430520000 10 430.52
2006 2007 Equity Share 1500 430.52 430520000 10 430.52
2005 2006 Equity Share 1500 430.52 430520000 10 430.52
2004 2005 Equity Share 1500 430.52 430520000 10 430.52
2003 2004 Equity Share 1500 430.52 430520000 10 430.52
2002 2003 Equity Share 1500 330.52 330520000 10 330.52
1999 2000 Equity Share 0.33 0.33 330520 10 0.33
Figure 10
Key Financial Ratios of Bank of Maharashtra
Mar ' 11 Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07
Per share ratios
Adjusted EPS (Rs) 3.07 10.21 8.40 7.57 5.30
Adjusted cash EPS (Rs) 4.48 11.95 10.16 9.16 6.55
Reported EPS (Rs) 6.24 10.21 8.71 7.63 6.31
Reported cash EPS (Rs) 7.65 11.95 10.47 9.23 7.56
Dividend per share 2.00 2.00 1.50 2.00 2.00
Operating profit per share (Rs) 9.50 14.14 13.79 13.04 7.55
Book value (excl rev res) per share (Rs) 61.02 55.84 47.97 41.01 39.85
40
Mar ' 11 Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07
Book value (incl rev res) per share (Rs.) 70.23 66.39 58.47 41.38 40.46
Net operating income per share (Rs) 123.95 123.03 109.24 86.57 64.66
Free reserves per share (Rs) 32.23 27.08 22.71 19.74 20.99
Profitability ratios
Operating margin (%) 7.66 11.49 12.62 15.06 11.68
Gross profit margin (%) 6.52 10.07 11.01 13.21 9.74
Net profit margin (%) 5.42 8.16 7.88 8.65 9.36
Adjusted cash margin (%) 4.02 9.56 9.19 10.39 9.71
Adjusted return on net worth (%) 5.02 18.28 17.51 18.44 13.30
Reported return on net worth (%) 10.23 18.28 18.16 18.60 15.84
Return on long term funds (%) 112.14 166.73 171.63 160.40 114.45
Leverage ratios
Long term debt / Equity 0.20 - - - -
Total debt/equity 22.94 26.33 25.31 23.65 19.77
Owners fund as % of total source 4.17 3.65 3.80 4.05 4.81
Fixed assets turnover ratio 4.52 4.24 4.02 5.56 4.87
Liquidity ratios
Current ratio 0.92 0.98 0.39 0.48 0.39
Current ratio (inc. st loans) 0.03 0.03 0.02 0.04 0.03
Quick ratio 20.82 22.75 9.78 8.00 8.40
Inventory turnover ratio - - - - -
41
Mar ' 11 Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07
Payout ratios
Dividend payout ratio (net profit) 38.98 22.91 20.13 30.67 37.05
Dividend payout ratio (cash profit) 31.80 19.57 16.75 25.36 30.93
Earning retention ratio 20.64 77.08 79.12 69.08 55.88
Cash earnings retention ratio 45.62 80.43 82.73 74.47 64.29
Coverage ratios
Adjusted cash flow time total debt 272.62 123.02 119.45 105.86 120.24
Financial charges coverage ratio 0.16 1.20 1.21 1.27 1.27
Fin. charges cov.ratio (post tax) 1.11 1.15 1.15 1.17 1.20
Component ratios
Material cost component (% earnings) - - - - -
Selling cost Component 0.31 0.26 0.37 0.48 0.30
Exports as percent of total sales - - - - -
Import comp. in raw mat. consumed - - - - -
Long term assets / total Assets 0.90 0.91 0.92 0.85 0.90
Bonus component in equity capital (%) - - - - -
Figure 11
42
Chapter 4
Lessons Learnt43
WORKING
The main working methodology was to understand the banking functions provided by
the Bank of Maharashtra to its valuable customers. To understand more on the
banking functions I used to attend the clients coming to the bank daily and trying to
know about the services they need and queries they have. Then I used to direct to the
respective service managers who can help them and standing with hem and
understanding how they are doing the work. Then I used to work with different
service managers and was given a task to understand the working of the different
services being provided to the customers.
1. I was given a project on KYC’s. In this project I was given a data of around 30
priority customers had to interact with the customers and tell them about the KYC’s
44
and telling them to get their KYC documents updated. Then I used to maintain the
data of all the customers whom I have interacted with.
2. The next project which I was given was the electronic services. In this I was given
a task to get at least 10 forms filled by the walk INS clients on the daily bases. And at
the end of the day I used to give the forms to the respected service managers to send it
for the scheduling.
KYC’S .KYC is the most important and the first and the fir most part of the banking
sector. Without the KYC the banking cannot be carried on. It has been made
mandatory by the RBI that every customer has to get its kyc documents updated
within a period of two years as a proof. Now to understand further that what actually
is the KYC’S.
WHAT IS KYC’S?
Know Your Customer - KYC enables banks to know/ understand their customers and
their financial dealings to be able to serve them better and manage its risks prudently.
WHY KYC IS NECESSARY:
To establish the identity of the client : This means identifying the customer and
verifying his/ her identity by using reliable, independent source documents, data or
information. For individuals, bank will obtain identification data to verify the identity
of the customer, his address/ location and also his recent photograph. This will be
done for the joint holders and mandate holders as well. For non-individuals, bank will
obtain identification data to:
verify the legal status of the legal person/ entity
45
verify identity of the authorized signatories and
verify identity of the Beneficial owners/ controllers of the account
To ensure that sufficient information is obtained on the nature of employment/
business that the customer does / expects to undertake and the purpose of the account.
KYC requirements have always been in place and Banks have been taking KYC
documents in accordance with the guidelines issued by RBI from time to time. RBI
has revisited the KYC guidelines in the context of recommendations made by the
Financial Action Task Force (FATF) on Anti Money Laundering standards and on
Combating Financing of Terrorism and enhanced the KYC standards in line with
international benchmarks.
'Know Your Customer' (KYC) Standards
1. The objective of KYC guidelines is to prevent banks from being used, intentionally
or unintentionally, by criminal elements for money laundering activities. KYC
procedures also enable banks to know/understand their customers and their financial
dealings better which in turn help them manage their risks prudently. Banks should
frame their KYC policies incorporating the following four key elements:
i. Customer Acceptance Policy;
ii. Customer Identification Procedures;
iii. Monitoring of Transactions; and
iv. Risk management.
46
For the purpose of KYC policy, a ‘Customer’ may be defined as :
a person or entity that maintains an account and/or has a business relationship
with the bank;
one on whose behalf the account is maintained (i.e. the beneficial owner);
beneficiaries of transactions conducted by professional intermediaries, such as
Stock Brokers, Chartered Accountants, Solicitors etc. as permitted under the
law, and
Any person or entity connected with a financial transaction, which can pose
significant reputational or other risks to the bank, say, a wire transfer or issue
of a high value demand draft as a single transaction.
KYC is a regulatory and legal requirement.
Regulatory: In terms of the guidelines issued by the Reserve Bank of India (RBI) on
29th November 2004 on Know Your Customer, all banks are required to put in place
a comprehensive policy framework covering KYC Standards and AML Measures.
Legal: The Prevention of Money Laundering Act, 2002 (PMLA) which came into
force from 1st July, 2005 (after “rules” under the Act were formulated and published
in the Official Gazette) also requires Banks, Financial Institutions and Intermediaries
to ensure that they follow certain minimum standards of KYC and AML as laid down
in the Act and the “rules” framed there under
When does KYC apply:
KYC will be carried out at the following stages:
47
Opening a new account Opening a subsequent account where documents as per
current KYC standards not been submitted while opening the initial account
Opening a Locker Facility where these documents are not available with the bank for
all the Locker facility holders
When the bank feels it necessary to obtain additional information from existing
customers based on conduct of the account
When there are changes to signatories, mandate holders, beneficial owners etc
KYC will also be carried out in respect of non-account holders approaching the bank
for high value one-off transactions.
If the proper kyc documents are not provided to the bank:
The Bank will be entitled to refuse to open the account (if you are a prospective
customer) or discontinue its relationship with you citing non-providing of KYC
information / documents (if you are
An existing customer.
However, for certain categories of customers who are not able to provide the
necessary documents, the Bank will open the account as per the flexibility provided
vide RBI DBOD circular no. AML.BC.28/14.01.001/2005-06 dated 23rd August,
2005.
48
Customer Identification Procedure: In line with the RBI mandate, the following
features need to be verified and the relevant documents must be obtained from
customers:
Features Documents
Accounts of individuals
Legal name and any
other names used
Correct permanent
address
(i) Passport (ii) PAN card (iii) Voter’s Identity
Card (iv) Driving license (v) Ration Card (vi)
Identity card (subject to the bank’s satisfaction)
(i) Utility bill (ii) Bank account statement
received by mail / courier along with signature
verification by the Banker or a cheque drawn on
that account for a minimum amount as specified
by the Bank, deposited into the account (iii)
Ration card (iv) Letter from employer (subject to
satisfaction of the bank)
49
Accounts of individuals
Legal name and
any other names used
Correct permanent
address
(i) Passport (ii) PAN card (iii) Voter’s Identity Card
(iv) Driving license (v) Ration Card (vi) Identity card
(subject to the bank’s satisfaction)
(i) Utility bill (ii) Bank account statement received by
mail / courier along with signature verification by the
Banker or a cheque drawn on that account for a
minimum amount as specified by the Bank, deposited
into the account (iii) Ration card (iv) Letter from
employer (subject to satisfaction of the bank)
Accounts of companies
Name &
registration details of the
company
Principal place of
business (registered
address)
Operating address
of the company
Telephone/Fax
Number
Certificate of incorporation and Memorandum &
Articles of Association
Latest Annual Return with the ROC
acknowledgement
List of Directors and the Form 32s supporting
their director status
Resolution of the Board of Directors to open
an account and identification of those who have
authority to operate the account
Power of Attorney granted to its managers,
officers or employees to transact business on its
50
behalf
PAN proof for the Company
Any utility Bill for the operating address
Identity and address proof as applicable to
accounts of individuals for all signatories, the
Managing Director, the Chairman and signatories to
the Board Resolution and all shareholders holding
over 20% of the capital of the company
KYC for any company which is a significant
shareholder of this company.
Accounts of partnership
firms
Evidence Legal
name
Evidence of
Address (Registered and
Operating)
Names of all
partners and their
addresses
Telephone
numbers of the firm and
partners
Registration certificate, if registered OR any
business registration document (eg, Sales Tax
Registration/ Service Tax Registration, Shops &
Establishments Registration, Factory Registration etc)
Partnership deed copy
Power of Attorney granted to any employee of
the firm to transact business on its behalf
Any utility bill in the firm’s name evidencing
its operating address
KYC documents for all partners and Power of
Attorney holders
PAN proof for the Firm
51
Accounts of trusts &
foundations
Names of trustees,
settlers, beneficiaries and
signatories
Names and
addresses of the founder,
the managers/directors
and the beneficiaries
Telephone/fax
numbers
Certificate of registration, if registered or PAN
Allotment letter / Acknowledged Income Tax Return,
if not the Trust is not registered
Any utility Bill for the Operating and
Registered address evidence
Trust Deed copy
Power of Attorney granted to any employee to
transact business on its behalf
Trust Resolution of the managing body of the
foundation/association
KYC documents for the trustees, signatories
and all beneficial owners with over 20% share
Figure 13
KYC DOCUMENTS FOR SALARIED
1. Identity and Residence proof of all applicants– Copy of Valid Passport / Voter's
ID / Valid Driving licence / Ration Card
(For Ration card without photo, separate bank signature verification is essential) /
Employer's issued Photo ID +
Letter
2. Age proof of all applicants - Copy of Valid Passport / Valid Driving licence / PAN
Card / Birth certificate / School
Leaving certificate / Voters ID Card
52
3. Residence proof of all applicants – Copy of Latest Telephone bill / Latest
Electricity bill / Valid Registered Rental
Agreement / Pan Intimation Letter / Medical Insurance Policy / Latest bank
statements received by customer by post (
Not of co-operative bank and approved by L&C) / Voter's ID / Driving License /
Ration Card- same condition as Identity
Proof / Valid Passport / Credit card statements / RV report / Employer's issued Photo
ID + Letter
Signature Verification proof of applicant - Copy of Valid Passport, Valid Driving
License, Copy of Pan Card or IPC
Cheque of > INR 10,000/-
ADDITIONAL KYC DOCUMENTS FOR NRI/ MARINER
Notarized GPOA
Copies of CDC and Mariner Declaration (for Mariner)
Indian Passport, Overseas Employment card issued by the government in country of
employment (for NRIs only)
Foreign passport/ National ID card/ Overseas Driver's License/ Social security card.
(For PIO)
ADDITIONAL KYC DOCUMENTS FOR PVT. LTD. COMPANIES
Office address proof - Copy of latest Utility bill / Valid Registered Rental or Lease
Agreement along with Utility Bill in the
name of Landlord / Current A/c statement for last 6 months
Shop and Establishment Certificate / Sales Tax Registration Certificate / Factory
Registration Certificate / SEBI
53
Registration Certificate / Form 18 & ROC Receipt
Copy of MoA/AoA and True Copy of Certificate of Incorporation, Form 32 or Annual
return copy with ROC
KYC documents (No. 3, 4, 5) of all shareholders with more than 20% individual share
in Company
ADDITIONAL KYC DOCUMENTS FOR PARTNERSHIP FIRMS
Office address proof - Copy of latest Utility bill / Valid Registered Rental or Lease
Agreement along with Utility Bill in the
Name of Landlord / Current A/c statement for last 6 months
Shop and Establishment Certificate / Sales Tax Registration Certificate / Factory
Registration Certificate / SEBI
Registration Certificate / Utility Bill in name of firm or landlord with a lease
agreement (only to be used as a 2nd address
Proof or operating address proof for non face to face or as an Operating address proof
in face to face)
KYC documents of all partners with more than 20% individual share in Firm
ADDITIONAL KYC DOCUMENTS FOR PROPRIETORSHIP FIRM
Office address proof - Copy of latest Utility bill / Valid Registered Rental or Lease
Agreement along with Utility Bill in the
Name of Landlord / Current A/c statement for last 6 months
Shop and Establishment Certificate / Sales Tax Registration Certificate / Factory
Registration Certificate / SEBI
Registration Certificate
54
PROJECT:
In this kyc part I was given a data of around 20 customers whom I were supposed to
call and ask them to get their kyc’s updated. Everybody had different accounts with
the bank like the individual account, joint accounts, account for the companies,
partnership firms and accounts for the trust and foundations. I asked them about the
type of account they are holding with the bank and explaining them about the
respective documents required for the various accounts to get their kyc’s updated.
When I called the customers some of them knew what kyc’s are but some of them
didn’t know what they are. So I explained them about the kyc’s. Some of the clients
had already deposited the documents. Maximum of them showed the positive
response and they dropped in the branch to get their documents updated. There were
only few clients who didn’t turn up because either they were not in the town or they
were busy with some important work. The clients were very supportive.
55
Experience of working with Bank of Maharashtra
The working really proved to be beneficial for me. I was very successful. It gave out
positive results as I got to learn different things from different service managers and
their style of working and how the customer’s queries are solved. Almost got to learn
the whole basics of the banking and got interact with customers. As this working
helped me to interact with the customers, it helped in me building the confidence to
talk to them.
When I interacted the priority clients, they were very supportive and listened and to
the things very respectfully. Earlier I was very hesitant in talking to clients but slowly
and steadily it build in me the confidence to talk to them. My next project i.e. on the
electronic services was also successful as I was able to achieve my target off getting
the applications filled by the customers an encouraging them to operate their accounts
through the net and visiting less to the branch.
56
Findings:
All the private and public sector banks are recognizing importance of the
relationship management in their growth and customer retention.
The officials try to make best relation with the customers.
Staff member gives regular updates to their customers and information of the
product and their services.
The registers and files are systematically maintained on a daily basis and in an
organized manner.
Most of the respondents are having more than two accounts and holds more
than two products with Bank of Maharashtra.
Bank has shown better utilization of cash balance of customer by cross selling
other products.
According to respondents feedback it is observed that bank is in need to
increase their branches in region as well as pay concern to increase their ATM
network.
Greater retention of customers is being needed as they are offering various
products and services. This enables a great understanding of what customers
may expect from the bank and what to offer to them. This leads to defining
57
where each customer is in his relationship with the bank so that cross-selling
can be done
Officials employed find themselves in much burden as there are very less
number of sales executives.
RECOMMENDATION
Managers should recognize that a certain amount of conflict will almost always exist
between professional and hierarchical authority and control systems. The key is to
transform this conflict into motivation by structurally insulating these workers from
organization pressure, while simultaneously making them aware of the importance
that their work holds for the firms well being and its continued competitive
advantages.
They should recognize that managing high-technology and professional employees is
significantly different from managing non-professionals have a different set of values
and characteristics, which have been gained through their socialization in the
technical specialty. Managers need to be cognizant of those values and characteristics
if they are not anticipate tension points and enhance the fit between the individual and
the job.
They should attempt to develop HR practices and policies that have had some success
in attracting, motivating and retaining the high-tech work force.
58
That requires, at a minimum, knowledge of or systematic diagnosis of organizational
practices, and matching HR practices to the organizations culture.
It also requires that a cadre of competent HR manager manage the transition. The
days of “ready-fire aim” are over for high-technology firms seeking competitive
advantages in their markets.
They should study the change process and learn from their experiences from change
owing to internal and external factors, including departures from tradition, new
leaders with new visions, crisis or other starting events, key decisions on the part of
senior management, or tests, of their infrastructure ability to accommodate change.
Firm also change because of change. But professionals and other high-tech workers
must clearly see the need for change, otherwise, they may not support the change, or
they may even sabotage it, therefore communication must be reemphasized.
They should design jobs and work relationship to take advantage of technical
specialties. For example, rotating professionals through multiple role and job
responsibilities can sensitize them to new ides and opportunities.
They should establish career sensitive tracking systems so that career development
becomes an integrated part of their firm practices.
They should utilize a menu of salient relevant that are relevant for high tech and
professional workers. These reminders ideally should be linked to performance, but in
some culture they might be liked so effort, risk taking, or other relevant behaviors.
59
REFERENCES/ BIBLIOGRAPHY
‘Banking : The Network is the bank’, by Yogesh Sharma, Dataquest,
January 31, 2006
‘Race will end in survival of the fittest’, The Financial Express,
November 29, 2006.
The Times of India, 26 July, 2007.
‘The future is in e-banking’ by Mr. K.V. Kamath (Managing Director,
ICICI), April 14, 2002, Business Line.
‘RBI road map for banking’, The Indian Express, July 21,2007.
Banking in India, by Dr A. K. Mishra (Professor & Chairman of Finance
Group at IIM Lucknow).
Web-sites:
http://www.bankofmaharashtra.in
https://www.mahaconnect.in
www.moneycontrol.com
60