Professional Documents
Culture Documents
INTRODUCTION
ORIGIN OF BANK
Today Bank has become part and parcel of our life. Apart from their
traditional business oriented functions, they have now come out with national
responsibilities. Banks accelerate the economic growth of the country and steer
the wheels of the country towards its goal of self-reliance in all fields. It
naturally arouses our interest in knowing more about the origin of bank. The
first banks were probably the religious temples of the ancient world.
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Banc or Banque which means a bench. In fact the early Jews in
Lombardly transacted their banking business by sitting on benches. However,
Macleod in his book, Theory and Practice of Banking has expressed a
different view. According to him the money changes were never Called
Benchieri in the Middle Ages. So, this derivation may be a mere conjecture.
Another common held view is that the word Bank might be originated from
the German word Back which means a joint stock fund. In due course, it was
Italianised into Banco, Frenchised into Bank and finally anglicised into
Bank. This view is most prevalent even today.
1. Dealing in money
3. Acceptance of deposit
4. Giving Advances
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5. Payment and withdrawal
9. Banking Business
A bank should always add the word bank to its name to enable
people to know that it is a bank that it is dealing in money.
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IMPORTANCE OF BANK
Banks are one of the most important parts of any country. In this
modern time money and its necessity is very important. A developed financial
system of the country can ensure scope for attaining economic development. A
modern bank provides valuable services to a country. To attain development
there should be a good developed financial system to support not only the
economic but also the society. So, a modern bank plays a vital role in the socio
economic matters of the country. Some of the important role of banks in the
development of a country is briefly mentioned below.
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5. Promote Agricultural Development
Agricultural sector is one of the integral parts of any economy. Food
self-sufficiency is the major challenge and goal of any country. Modern banks
promotes agricultural sector by providing loans and advances with low rate of
interest compared to other loans and advances schemes.
6. Implementation of Monetary Policy
Monetary policy is an important policy of any government. The
major aim of monetary policy is to stabilize financial system of the country from
the dangerous of inflation, deflation, crisis etc. Banks are helpful to implement
policies relating to monetary matters successfully.
7. Balanced Development
Modern banks are spreading its operations throughout the world.
We can see number of big banks like Citi bank, Baroda bank etc. It helps a
country to spread banking activities in rural and semi urban areas. With the
spreading of banking operations around the country, they help to attain balanced
development by promoting rural areas.
Modern bank plays vital role in the social- economic development
of the country. A developed banking system enables the country to attain
balanced development without any special consideration of rich and poor, cities
and rural areas etc.
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To encourage public confidence in the working of the financial system,
increase savings speedily and efficiently.
To avoid focus of financial powers in the hands of a few individuals and
institutions.
To set equal norms and conditions (i.e. rate of interest, period of lending, etc.)
to all types of customers.
Commercial Banks:
Commercial banks are the most important types of banks. The term
commercial carries the significance that banking is a business like any other
business. In other words, commercial banks are essentially profitmaking
institutions.
They collect deposits from the public and lend money to business
firms (manufacturers), traders, farmers and consumers. Commercial banks
normally meets the working capital needs of trade and industry and are a part
of the money market.
The current account deposits of commercial banks are used as a
medium of exchange, i.e., for making transactions. Deposits of other banks are
not so used. These are specialized institutions which give loans to specific
sectors of the economy. Here we are mainly concerned with commercial banks.
So we generally use the term banks to refer to commercial banks.
The commercial banks can be further classifies as: public sector bank,
private sector banks, foreign banks and regional banks.
1. The public sector banks are owned and operated by the government,
who has a major share in them. The major focus of these banks is to
serve the people rather earn profits. Some examples of these banks
include State Bank of India, Punjab National Bank, Bank of
Maharashtra, etc.
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2. The private sector banks are owned and operated by private
institutes. They are free to operate and are controlled by market forces.
A greater share is held by private players and not the government. For
example, Axis Bank, Kotak Mahindra Bank etc.
Development Banks:
Development banks are parts of a countrys capital market. In India
they are called public financial institutions. They are specialized financial
institutions which supply long-term finance to large and medium industries.
They also perform various promotional functions for accelerating the rate of
capital formation in the country.
In this way they promote industrial development in particular and
economic development in general. IFCI, IDBI and ICICI are examples of such
banks. These institutions have assumed a crucial importance in providing an
ever-increasing proportion of industrial finance and various types of
development assistance to business enterprises in India.
Co-operative Banks:
Co-operative banks operate in both urban and non-urban areas. All
banks registered under the Cooperative Societies Act, 1912 are considered
cooperative banks. These are banks run by an elected managing committee with
provisions of members rights and a set of communally developed and
approved bylaws and amendments.
In the urban centres, they mainly finance entrepreneurs, small
businesses, industries, self-employment and cater to home buying and
educational loans. Likewise, co-operative banks in the rural areas primarily
cater to agricultural-based activities, which include farming, livestocks, dairies
and hatcheries etc. They also extend loans to small scale units, cottage
industries, and self-employment activities like artisanship.
Unlike commercial banks, who are driven by profit, co-operative
banks work on a no profit, no loss basis. These are regulated by the Reserve
Bank of India under the Banking Regulation Act, 1949 and Banking Laws
(Application to Co-operative Societies) Act, 1965.
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Scheduled Banks:
By definition, any bank which is listed in the 2nd schedule of the
Reserve Bank of India Act, 1934 is considered a scheduled bank. The list
includes the State Bank of India and its subsidiaries (like State Bank of
Travancore), all nationalised banks (Bank of Baroda, Bank of India etc.),
regional rural banks (RRBs), foreign banks (HSBC Holdings Plc, Citibank NA)
and some co-operative banks. These also include private sector banks, both
classified as old (Karur Vysya Bank) and new (HDFC Bank Ltd).
To qualify as a scheduled bank, the paid up capital and collected
funds of the bank must not be less than Rs5 lakh. Scheduled banks are eligible
for loans from the Reserve Bank of India at bank rate, and are given membership
to clearing houses.
Non-scheduled Banks:
Nationalised Banks:
In the Indian banking scenario, most public sector banks are referred
to as Nationalised Banks. This classification is, however, inaccurate.
According to the IMF (International Monetary Fund),
Nationalisation is defined as government taking control over assets and over
a corporation, usually by acquiring the majority or the whole stake in the
corporation
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Regional Rural Banks:
Regional Rural Banks or RRBs, simply put, serve the rural areas and
agricultural sectors with basic banking and adequate financial services. They
were set up in 1975, based on the recommendations of a committee. Based in
Moradabad, Prathama Bank, established on 2 October 1975, is the first RRB to
open in India. It was sponsored by Syndicate Bank. The RRBs are owned by
the central government (50%), the state government (15%) and the sponsor
bank (35%). Several commercial banks have sponsored RRBs. Prominent
examples include the Maharashtra Gramin Bank (sponsored by the Bank of
Maharashtra) and the Himachal Gramin Bank (sponsored by Punjab National
Bank). RRBs were set up to eliminate other unorganized financial institutions
like money lenders and supplement the efforts of co-operative banks.
Central Bank:
The central bank is also called the banker's bank in any country. In
India, the Reserve Bank of India is the central bank. The Federal Reserve in
USA and the Bank of England in UK function as the central bank. This bank
makes various monetary policies, decides the rates of interest, controlling the
other banks in the country, manages the foreign exchange rate and the gold
reserves and also issues paper currency in a country. The monetary control is
the primary function of a central bank in most countries and so they are
considered as the lender of last resort to various commercial banks.
The banking system has witnessed a huge growth and the competition
amongst various banks have increased these days. The boom in e-commerce
industry, globalization, and increased popularity of internet has made it vital
for the banks keep up with the latest technology trends. With the entry of the
private and global banks in the market, the competition amongst the banks has
increased in the country. They provide a wide variety of services other than
borrowing and lending money to people.
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When a corporate entity wants to issue new equity or debt securities,
an investment bank serves the role of an intermediary. They sometimes also
make investment in these companies through purchase of equity shares.
Merchant Banks:
A merchant bank helps a company to sell its new shares to the general
public. The main job of a merchant bank is raise money to lend to industry.
They do not lend money themselves but instead help circulate money from
those who want to lend to firms who wish to borrow.
Foreign Banks:
There are many foreign banks in India like the Citi Bank, the Hong
Kong and Shanghai Bank and the Bank of America. These are not nationalized
institutions like Indian commercial banks.
Specialized Banks:
These provide unique services to their customers. Some such banks
include, foreign exchange banks, development banks, industrial banks, export
import banks etc. These banks also provide huge financial support to
businesses and various kinds projects and traders who have to import or export
their goods or services.
1. Exchange Banks:
These banks are engaged in buying and selling foreign exchange.
These banks help the growth of international trade.
2. Exim Bank:
It is popularly known as Export Import Bank. Such banks
provide long term financial assistance to the exporters and importers.
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programme or improving the access of the rural poor to formal institutional
credit. The self-help group (SHG) Bank linkage programme was introduced
in 1992 as a mechanism to provide financial services to the rural poor people
on a sustainable basis.
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Total credit should not exceed 1Lakh rupees in a year.
Maximum balance should not exceed Rs. 50,000/- at any time.
Cash withdrawals & transfers must not exceed Rs.10, 000/- in a
month.
Remittance from foreign account cannot be credited to this
account without completing normal KYC formalities.
This account can be opened only at Core Banking Solution
linked branches of banks or at such branches, where it is possible
to manually monitor the fulfillments of the conditions.
3. Current Account
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Any resident individual- single accounts, two or more
individuals in joint accounts, Associations, clubs,
Institutions/Agencies specifically permitted by the RBI
etc., are eligible to open this account in single/joint
names.
Periodic/Monthly installments can be for any amount
starting from as low as Rs.50/- onwards.
Account can be opened for any period ranging from 6
months to 120 months, in multiple of 1 month.
The amount selected for installment at the start of the
scheme will be payable every month.
The number of installments once fixed, cannot be
altered.
Approved rate of interest is compounded every quarter.
The amount after maturity will be paid to customers one
month after the deposit of the last installment.
Pass book will be given to the depositor.
TDS will be applicable on the interest, as per the latest
changes in the Income Tax Act on cumulative deposits
also.
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Any resident individual- single accounts, two or more
individuals in joint accounts, Associations, Minors, societies,
clubs etc., are eligible for this account.
The minimum FDR in metro & Urban branches is Rs.
10,000/& in rural & semi urban & for Senior citizens is
Rs.5000/-.
For the subsidy kept under the government sponsored
schemes, Margin money, earnest money & court
attached/ordered deposits, minimum amount criteria
will not be applicable.
Depositors may ask for repayment of their deposits
before maturity. Repayment of amount before
maturity is allowable.
Interest rate differs from bank to bank depending
upon the tenure of the deposits & as when the bank
changes the rate.
Additional interest of 0.50% is offered for senior
citizens on deposits placed for a year & above.
6. Demat Account
7. No Frill Account
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In simple words it: If a company makes its service/product
cheaper by removing the extra features, that is no frill. Eg.
Mobile phone postpaid package without unlimited ringtones or
free night talk. Dish TV package without 100 sports channels.
For our discussion purpose: No frill account is a type of bank
account, with low / Zero balance requirement with extrafeatures
removed.
RBI came up with this No-frill concept, because poor people
cannot open regular bank accounting having requirements like
Rs.5000/- minimum balance etc. So there are no frill accounts
for them. So that poor people can open bank accounts
and take
loans, thatll save them from the 36% interest rate
charged by
the evil money
lenders.
8. Joint
Account
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9. Student Account
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payments for investments as specified by the Reserve
Bank
and remittance outside India of current income like
rent,
dividend, pension, interest, etc., net of applicable
taxes, of the
account
holder.
NRI/PIO may remit from the balances held in NRO
account an
amount not exceeding USD one million per financial
year,
subject to payment of applicable
taxes.
The accounts may be held jointly with residents and /
or with
non-resident
Indian.
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remittance outside India, investments in shares /
securities/commercial paper of an Indian company, etc.
Loans up to Rs.100 lakh can be extended against security of
funds held in NRE Account either to the depositors or third
parties.
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15. Resident Foreign Currency Account
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The funds in RFC accounts are free from all restrictions
regarding utilisation of foreign currency balances including any
restriction on investment in any form outside India.
RFC accounts can be maintained in the form of current or
savings or term deposit accounts, where the account holder is
an individual and in the form of current or term deposits in all
other cases.
RFC accounts are permitted to be held jointly with the resident
close relative(s) as defined in the Companies Act, 1956 as joint
holder (s) in their RFC bank account on former or survivor
basis. However, such resident Indian close relative, now being
made eligible to become joint account holder shall not be
eligible to operate the account during the life time of the
resident account holder.
Overdrafts:
Bills Finance:
Demand Loans:
Term Loans:
Retail Credit:
Leasing Finance:
Bill Discounting:
When the holder of a bill wants to get the money before the due date,
he can sell the bill to a bank against a small charge, known as discounting
charges i.e., a supplier or creditor of goods discounts the incomes for sale of
goods.
Discounting charge is imposed by the bank at a fixed rate present p.a.
from the date of discounting to the date of maturity. At present in our country,
through the discounting of bills of exchange a major part of lending of money
taken place by commercial banks.
However, a clean bill carries only the personal security of the drawer
and drawee, but a documentary bill, however, accompanied by Bill of Lading,
Railway Receipt or other documents of title of goods, which provide extra
security in addition to the personal security of the drawer and drawee.
It is needless to say that if the bill is dishonoured by the drawee/drawer, the
bank naturally will recover the amount from the drawer/creditor of the bill.
Factoring:
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Venture capital implies the financial investment to high-tech growing
companies (i.e., higher risk based) as equity capital with the expectation of a
higher rate of return which is inclusive of initial as well as development capital
for a company.
Although the concept is very old, it is not widely accepted.
Sometimes, this capital is being introduced as a result of the product of any
scientific improvement and technology and to bring it into real world situation.
It also helps the new companies to issue shares who find it difficult.
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basis. Advance is granted for a period of 180 days and if the export is not
executed by that time, the export should be completed within 360 days.
The credit facilities given by the banks where actual bank funds are
not involved are termed as 'non-fund based facilities'. These facilities are
divided in three broad categories as under:
Letter of Credit
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4. Advising Bank. Notification regarding issuing of letter of credit may be
directly sent to the beneficiary by the opening bank. It is, however,
customary to advise the letter of credit through sane other bank operating
at the place/country of seller. The bank which advises the letter of credit
to the beneficiary is known as advising bank.
5. Confirming Bank. A letter of credit substitutes the credit worthiness of
the buyer with that of the issuing bank. It may sometimes happen
especially in import trade that the issuing bank itself is not widely known
in the exporter's country and exporter is not prepared to rely on the L/C
opened by that bank. In such cases the opening bank may request other
bank usually in the country of exporter to add its confirmation which
amounts to an additional undertaking being given by that bank to the
beneficiary. The bank adding its confirmation is known as confirming
bank. The confirming bank has the same liabilities towards the beneficiary
as that of opening bank.
6. Negotiating Bank. The bank who negotiates the documents drawn
letter of credit and makes payment to beneficiary.
The function of advising bank, confirming bank and negotiating
bank may be undertaken by a single bank only.
Guarantees
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2) Performance guarantees - Guarantees for due performance of a
contract by customers.
Co-acceptance of Bills
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Strengths of Indian Banks
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Financial exclusion
Complex and non-responsive organizational structures
Credit to non-productive sectors like commercial estate
Poor customer service
Underutilized capacity particularly in rural areas
Unsatisfactory work culture
Feudalistic attitude of thee staff
These and a few other areas which should receive the attention of
banks seeking opportunities for sustainable growth are summarized below:
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Challenges for Indian Banks:
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CHAPTER 2
REVIEW OF LITERATURE
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The third period known as financial reform and liberalization period. Started in
early 90's. In that period government of India was more likely to more
liberalized. The three committee in 1985, vagual in 1987 and the Narasimham
committee 1991. The most influential recommendations made by the
committee of Narasimham regarding liberalization, consolidation and
privatization in banking system. And the government of India started a
financial reform era with the financial sector liberalization program. The main
aims of financial liberalization program is to regulate the rates of interest, cash
reserves and performance financial system consist of financial institute stocks
exchanges and banks. It makes liberalization program enhance the importance
of banking sector and make it more efficient and competitive.
The globalization, deregularisation and privatization system
emphasized on Washington consensus. These leads country to simplistic way
of transforming system by functioning of market and state owned institution's
restructuring. The liberalization program made changes internal economy. It
restated more competitive and productive in shorter period. The liberal interest
rates and reserve limits of banks resulted into stable and sound borrowing and
lending market and monetary policy of government. The bank requires to keep
certain amount of reserves to avoid too uncertainty an future due to competitive
market another element of banking reforms is stabilization, non-performing
loan, which burdensome for banks are recapitalized and require standard
working environment one of the most effective part is alteration of state owned
banks into private sector banks. Under the government controls state owned
banks recommends to sell out its public portion to private sector and consume
the public property in other economic project which needs more funds and
these funds are taken from the privatization of state owned banks.
Under the Nationalization act 1969, the largest banks were
nationalized with the aim of increase in public deposits. The reason behind the
nationalization of banks to grow the economy and bank network expansion.
The government of India requires enhancing the economy and serving to prior
areas. In 1980, more six banks were nationalized added into public share in
banks to keep landing to priories' areas. It was material to control on banking
system and resulted into increase in priority area landing and five year plans of
Indian Government. Moreover, these turned into inefficiency in banking
system instead of providing equal distribution of funds. Addition banking
system faced problems in 1980s these are the period of unprofitability and
inefficiency and in mid 80s creates more limitations on returns and capital and
reserves. These leads banks to the unrealistic performance standards. As
mention above the 1991 Narasimham committee caters a influencing idea on
banking sector reforms which idealized on interest rate deregulation, credit
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services and entry of new banks on Indian market private as well as foreign
banks.
CHAPTER 3
RESEARCH METHODOLOGY
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cost. The experience of Indian banking systems since nationalization has
brought to the forefront the immense potential of banking as a level of
economic development. Since banking, development and economic
development are closely associated with each other. It would be pertinent to
have an analytical study of the activities of the Public Sector Banks and Private
Sector Banks in the field of economic development in India. It is necessary to
examine the extent to which the banks have moved towards their goal.
Research methodology is a way to solve the research problem systematically.
It may be understood as a science of studying how research is done
scientifically.
Research Methodology includes the assumptions and values, which
is useful for interpreting data and reaching to conclusions. The present 53
analytical study is an attempt to study the productivity measurement for
selected unit of Public Sector Banks and Private Sector Banks for particular
period. The purpose of this analytical study is, thus to make an in-depth study
of what the Public Sector Banks and Private Sector Banks in India have done
during the period of last five years (2005-06 to 2009-10).
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CHAPTER 4
CORPORATION BANK
INTRODUCTION
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The need to start this bank was felt because there was no such facility
at Udupi, an important trading centre next to Manglore in Dakshin Kannada
district. The indigenous banking was largely in the hands of few rich private
individuals and something had to be done to provide relief to the common man
from the clutches of the money lenders who held fully swey. What inspired the
founding fathers was the fervor of swadeshism, for promoting the bank, the
founder president made an appeal saying, the primary object in forming the
Corporation Bank is not only to cultivate habit of thrifts amongst all classes
of people, without distinction of the cast or creed, but also habit of co-operation
amongst all classes. This is swadeshism, pure and simple and every lover of
the country is expected to come forward and co-operate in achieving the end in
view. It was called through co-operation of all, shorn of distinction of caste and
creed The Canara Banking Corporation Limited as the institution was called
then, started functioning as a Nidhi with a humble beginning. The initial
capital was Rs 5000.
HISTORY
Corporation Bank, the oldest banking institution in the erstwhile
undivided South Canara District of the Madras Presidency and one of the oldest
banks in India, was founded in 12 March 1906 in the Temple Town of Udupi,
by a small group of philanthropists led by Khan Bahadur Haji Abdulla Haji
Kasim Saheb Bahadur. The need to start this bank was felt because there was
no such facility at Udupi, an important trading centre next to Mangalore in
South Canara district. The indigenous banking was largely in the hands of a
few rich private individuals and something had to be done to provide relief to
the common man from the clutches of the money lenders who held full sway.
The first branch of a modern bank established in the district was the Bank of
Madras, one of the three Presidency Banks, which set up its office in Mangalore
in 1868 largely to cater to the business needs of a few British firms dealing in
export of plantation products. Its agent used to visit Udupi once a fortnight or
so, to do banking. Money remittances had to be made only through postal
medium.
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saying, The primary object in forming corporation is not only to cultive
habits of thrift amongst all classes of people, without distinction of caste or
creed, but also habits of cooperation amongst all classes. This is swadeshism,
pure and simple and every lover of the country is expected to come forward
and cooperate in achieving the end in view. They rightly defined Swadeshism
as institution-building to aid economic activity through co-operation of all,
shorn of distinction of caste and creed. The Canara Banking Corporation
(Udupi) Limited, as the institution was called then, started functioning as a
Nidhi with a humble beginning. The initial capital was Rs.5000/- and at the end
of the first day, its resources stood at "38 rupees 13 annas and 2 pies.
The setting up of the Canara Banking Corporation Ltd. seems to have
given a fillip to co-operative banking and also to regular banking elsewhere in
the district. Between 1909 and 1917, six co-operative banks came into being
and during the decade immediately after the first world war (1914-18) South
Canara gave birth to as many as eight banks. It is to the credit of this bank that
despite two world wars, economic depression and stiff competition, the bank
not only quite survived, but also made satisfactory progress.
Having been started at Udupi, the bank first branched out by opening
a branch at Kundapur in 1923. The second branch of the bank was opened in
Mangalore at car street in 1926. The bank stepped into Kodagu district in 1934
by opening its seventh branch in Madikeri. In 1937 the Bank was included in
the second schedule of Reserve Bank of India, 1934. In 1939, the banks name
changed from Canara Banking Corporation(Udupi) Ltd. To Canara Banking
Corporation Ltd. The Bank graduated into a regional bank in
1945 when the total number of its branches stood at 28. In 1961, it took over
Bank of Citizens of Belgaum. In the same year, the banks administration
office shifted from Udupi to Mangalore.
The second change in the name of the bank occurred in 1972, from
Canara Banking Corporation Ltd. to
Corporation Bank Limited. The bank was nationalised in 1980 along with 5
other private sector banks. After nationalisation, the pace of growth of the bank
accelerated and it made all-round progress. Started as a common mans bank,
it changed with the times to meet the aspirations of the people but never
swerved from its motto- Sarve Janah Sukhino Bhavantu meaning Prosperity
for All.
It endeavoured and succeeded in striking a right balance between
traditional values and innovative approach, personalised service and
professional outlook and commercial consideration and public concen. One of
the unique achievements of the bank is that it has been paying dividend
47
continuouslyfor the last 98 years since its inception. To day, with the most
modern technology-driven products and services and nationwide branches &
ATMs, Corporation Bank stands tall among the public sector banks in India
and is hailed as one among the wellmanaged public sector banks with excellent
track record in all the key parameters of banking. The bank has the second
largest ATM network in the public sector.
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AWARDS
Corporation Bank received the winner award jointly with Indian Bank for
Cheque Truncation System under the mid-sized category. The bank also
received two runner-up awards for National Financial Switch for its
performance in acquirer transactions and Immediate Payment Service
(IMPS).
Corporation Bank is ranked First under "National Awards for Excellence in
MSE Lending" and Second under "National Awards for Excellence in
Lending to Micro Enterprises" for the year 2012-13 under Public Sector
Banks from Ministry of Micro, Small and Medium Enterprises.
Corporation Bank has won the IBA Banking Technology Award 2012-13
for "Best Use of Mobility Technology in Banking". Shri S R Bansal,
Chairman & Managing Director of the Bank received the award at the
function held at Mumbai on 27 January 2014.
For its impressive lending to SME sector, the Bank has been awarded an "
SKOCH ACHIEVERS AWARD" by SKOCH, Delhi, on 22.3.2014.
National Award for Assistance to Exporters from the President of India
(197677)
Gem & Jewellery Export Promotion Council Award successively for 5
years from 1981 to 1985
Shiromani Award 1992 for Banking from Union Minister for Commerce
Best Bank Award for Excellence in Banking Technology from Institute for
Development & Research in Banking
Technology (IDRBT), Hyderabad (2001)
Best Bank Award for Innovative Usage and Application on INFINET
(Indian Financial Network) from Institute for Development and Research in
Banking Technology (IDRBT), Hyderabad (2002)
Best Bank Award for Delivery Channels from Institute for Development
and Research in Banking Technology (IDRBT), Hyderabad (2003)
Runner-up Awards in the "Best Online and Multi-channel Banking Team"
and "Outstanding achiever of the year-corporate" categories in recognition
of outstanding achievement in Banking Technology for 2004, instituted
under the aegis of Indian Banks Association and Trade Fairs & Conferences
International.
Best PSU Bank of the year by Bloom berg
UTV Financial Leadership Award 2011
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Best Nationalised Bank by Financial Express (Source: Self Advertisement
in Hindustan Times, Delhi, Front Page, 2 April 2011)
CORPORATE VISION
To evolve into a strong, sound and globally competitive financial
system, providing integrated services to customers to customers from all
segments, leveraging on technology and human resources, adopting the best
accounting and ethical practices and fulfilling corporate and social
responsibilities towards all stake holders.
CORPORATE MISSION
INFRASTRUCTURE
Corporation bank is the fast expanding National Bank with over 1800
service outlets across the nation in 23 States and 2 Union territories. We are
present in all most all100 top centres in the country. We have a large presence
in major Metros in India
Delhi over 150 outlets
Mumbai over 140 outlets
Bangalore over 170 outlets
Chennai over 50 outlets
Hyderabad over 40 outlets
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To serve esteemed customers with Convenience banking, Corporation
bank strong network of over 1032 ATMs across the country. Corporation bank
is excited at the growing opportunities for business by meeting the customer
expectations exceedingly well, expanding the footprints and reaching our brand
to new destinations.
The branch of Corporation Bank in Sagar was established in the year
1936. Now it has a main branch in heart of Sagar town and a branch at APMC
yard to serve there can at merchants and growers. The main branch has staff
strength of 13 out of which 1manager, 3 officers, 6 clerks, 2 attainder and 1
part-time attainder.
Credit Proposal From The Borrower This is the first step wherein the
proposal is received from the borrower for the loan, the borrow must either
be a customer or must be introduced by a certain customers, etc. he must
apply to the bank as to the loan, the reason for taking loan, etc. the amount
of the loan that the applies for must also be stated in advance.
Know Your Customer This step is very much important because the viability
of the customer can only be assessed in this step. The customer is assessed
regarding his financial feasibility and his ability to repay the loan amount
along with the interest. The customer can be assessed on the basis of his
previous dealings with the bank. Information about it can also be sought from
the person who introduced the customer to the bank.
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office and the head office. If the loan amount is reasonably much it involves
discussion with the AGM, DGM and the board. Discussion with these people
is required because their expertise and opinion can play a major role here.
Risk meeting A high level risk meeting is conducted as to the proposal; legal
opinion is also sought sometimes regarding the proposal if the appraisal was
not satisfactory. This risk meeting will decide whether the loan amount can
be financed with two promote banks jointly so that the risk burden can be
shared amongst the borrowers.
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CHAPTER 5
PRODUCTS AND SERVICES
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for its customer orientation, especially prior to nationalisation. In the new
century it is seen making concerted efforts to improve its customer orientation.
The following is a report of its customer orientation in the new era under
four major heads, i.e. Products, Technology, Service Environment
Personal Products
Deposit products
3.Saving Bank: Corp Bank SB account holder will get the facilities
like any Branch banking. Corp power cheque, Corp convenience
card, Corp junior account, Corp senior account.
6. Fixed Deposit: The deposit can be made for period ranging from
15 days to 10 years. The rate interest depends on the period of
deposit.
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7. Corp Classic: It is an innovative technology-based account that
combines the hi-liquidity of a savings bank account and the
highreturns of a Terms deposit. The account works simply by
fixing by fixing your savings from a savings bank account to a
term deposit and vice versa.
11.Corp Junior and Senior Account: These are ATM based accounts
for children and parents. Sometimes parents may be in a different
city and their children may be studying somewhere else. To facilitate
them to access funds without
resorting to transfer of funds from centre to centre, corp senior or
corp junior accounts are opened in their own ATM/Debit cards.
12. Corp Elite Account: A premium saving account with free adds on
facilities.
Loans Products
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whichever is less, but should not exceed 12 times of monthly take
home pay in case of salaried persons.
7.Corp Cash Demat- Share Loan: Individuals who have been properly
introduced to the Bank If the shares are in joint names, the loan
account should be in joint names. Purpose to provide liquidity to
investors against shares to meet contingencies and personal needs or
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for subscribing to the Rights /New Issues of shares / Debentures/
Bonds or for purchases in the secondary market.
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12. Corp Mitra: To meet personal/ domestic expenses/ contingencies.
All the confirmed employees/ executives/ officials of the LIC of
India, LIC housing finance ltd, LIC mutual funds and other insurance
companies under public sector and their subsidiaries whose salary is
routed through our Bank
15. Home Loan + Insurance: Corp bank in association with the life
insurance corporation of India gives life insurance cover to the
housing loan taken by the customers. Maximum term assure under
the scheme will be 3 years.
Corporate Products
3. Corp Rental: This facility helps the customer to encash the rent
receivable from the commercial properties.
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4. Forex: Corp Bank also offers Forex services to its customers.
5. Working capital: Corp Bank also provides the short term financial
facility to finance the working capital requirements.
6. Term Finance: The bank extends term loans for capital investment
being made by the clients on account of expansion of existing
enterprises for establishment of a new enterprise
NRI Schemes
1. Corp Express Money: The bank has entered into a tie up with UAE
Exchange Centre LLC for facilitating global money transfers into
India from Gulf region. With a view to facilitating the NRIs in the
Gulf and Middle East to transfer their earnings back home swiftly.
4. Corp Quick Remit: an online remittance service for the NRIs based
in USA and Canada which provides them a means to transfer funds
to India quickly, securely, conveniently and in a cost-effective
manner through Automated Clearing House(ACH) network in USA.
InternetBanking
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3. Corp e-rail: facilitating booking of railway tickets through interest by
customers of the bank.
4. Corp Reach: the remote access facility that enables you to bank from
the comfort of your home or even your work place.
5. Online Railway Reservation: The Bank has entered into a tie up with
the Indian railway catering and tourism corporation for online booking
of railway tickets.
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crediting to customer as per their choice. a detailed MIS which
provides break up of such credit such as location name and dealer
details are provided to the customer.
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their product online to the strong retail customers of corporation bank
their by giving strong potential segment for their product.
16. PDC HUB: Corporation Bank has setup exclusive PDC factory at
Chennai for collecting large volume of Post-dated cheques. The setup
is equipped with all the necessary infrastructure and logistics to
effectively collect post-dated cheques. The facility will be helpful to
the financial companies, Asset Management Companies etc. who
receives large number of post-dated cheques.
OtherServices
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3. Corp Junior: It enables parents whose children are studying away
from them to remit money at periodic intervals in a hassle free
manner.
6. Corp Power cheque Multi city cheque Facility: Multi city cheque
is a facility wherein the customer can issue cheques drawn at the base
branch and payable at selected remote centres. This cheques will
thus, be treated as local cheques in the remote centre selected by the
customer.
7. ATM s: with the accelerated thrust for ATM network, in tune with
changes and customer preferences, the Bank has optionalised and the
total number of ATMs to 1032 across the country. The Bank has
accelerated its technology drive during the year by offering several
innovative tailor made products and services with the ultimate
objective of delivering value to customers
10. Corp Smart: a combi card combining an electronic purse and ATM
card.
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shops, restaurants, travel agencies, hostels and quick cash
withdrawals at Corp Bank ATMs or ATMs that display the VISA
logo worldwide.
12. Corp Payroll: a unique payroll account for disbursal of staff salaries
with special benefits to employees.
14. Corp Vault: locker facility for safety, security, reliability, to keep
your jewellers, important documents like deeds, wills and any other
valuable items.
Classic Card
For every financial transaction that you make, Corporation
Banks classic debit card gives you immense convenience and security.
Shop anywhere, anytime, pay your bills, re-fuel your vehicle, book
tickets online, pay for your purchases made online, transfer funds or
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withdraw cash as per your needs with this card. Cardholders also enjoy
the facility to access additional 4 secondary accounts (apart from
primary account). These accounts can be accessed only through
Corporation Bank ATMs. The secondary account can be at any
Corporation Bank branch.
Platinum Card
Enjoy the freedom of using your Platinum Debit Card
internationally (to pay for purchases and withdraw cash), enhanced
transaction and cash withdrawal limits, and get immediate access to
your account from any part of the world. The card also entitles you to
get exclusive benefits and privileges, shop anytime (online or offline),
pay your bills, re-fuel your vehicle, book tickets online, transfer funds or
withdraw cash at ATMs. Cardholders are also provided with Zero lost
card liability cover. In case your Platinum Debit Card is lost or stolen,
this cover protects you from any loss of money that might result out of
fraudulent transaction using your card. Please make sure that you
intimate the bank as soon as your card gets stolen/lost.
Signature Card
Corporation Banks Signature Debit Card has been especially
designed to complement the lifestyle needs of cardholders, opening up
a world of luxury and privileges to them. The card comes with a host of
privileges like free lounge access to cardholders, higher daily
transaction limits (cash withdrawal and online purchase), and free air
accident insurance of Rs. 50,00,000. Customers also enjoy exclusive
benefits on dining, entertainment, travel, lifestyle and blockbuster
weekends exclusive discounts.
CorpKiran-CSR Unit
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The target group for all the activities shall be persons from weaker
sections of the society. The Association would enlist support of Banks
employees / ex-employees, their family members, NGOs, SHGs, State
Governments, District Administration, local bodies etc. in project execution.
Conclusion
Banking systems have been with us for as long as people have been
using money. Banks and other financial institutions provide security for
individuals, businesses and governments, a like.
In general, what banks do is pretty easy to figure out. For the average
person banks accept deposits, make loans, provide a safe place for money and
valuables, and act as payment agents between merchants and banks. Banks are
quite important to the economy and are involved in such economic activities as
issuing money, settling payments, credit intermediation, maturity
transformation and money creation in the form of fractional reserve banking.
To make money, banks use deposits and whole sale deposits, share equity and
fees and interest from debt, loans and consumer lending, such as credit cards
and bank fees.
In addition to fees and loans, banks are also involved in various other
types of lending and operations including, buy/hold securities, non-interest
income, insurance and leasing and payment treasury
services.
History has proven banks to be vulnerable to many risks, however, including
credit, liquidity, market, operating, interesting rate and legal risks. Many global
crises have been the result of such vulnerabilities and this has led to the strict
regulation of state and national banks.
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BIBLIOGRAPHY
www.wikipedia.com
www.corpbank.com
www.corpbanknet.com
www.bankbazaar.com
www.scribd.com
www.slideshare.net
www.projectworld.blogspot.in
www.yourarticlelibrary.com
www.deal4loans.com
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