CHAPTER: CHAPTER: CHAPTER: CHAPTER: - 3 RESEARCH RESEARCH RESEARCH RESEARCH METHODOLOGY AND METHODOLOGY AND METHODOLOGY AND METHODOLOGY AND PROFILE OF SELECTED PROFILE OF SELECTED PROFILE OF SELECTED PROFILE OF SELECTED NATIONALIZED BANKS NATIONALIZED BANKS NATIONALIZED BANKS NATIONALIZED BANKS IN INDIA IN INDIA IN INDIA IN INDIA
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CHAPTER: CHAPTER: CHAPTER: CHAPTER: ---- 3333
RESEARCH RESEARCH RESEARCH RESEARCH
METHODOLOGY AND METHODOLOGY AND METHODOLOGY AND METHODOLOGY AND
PROFILE OF SELECTED PROFILE OF SELECTED PROFILE OF SELECTED PROFILE OF SELECTED
origin), co-operative banks, Regional Rural Banks working under the lead
nationalised bank of a particular districts and many other financial institutions.
For my research purpose Indian Bank have selected 10 nationalised banks in
Indian Banks in India. Following are the profiles of that banks that have been
selected for the research purpose.
1. BANK OF BARODA
� INTRODUCTION
Bank of Baroda is one of India’s leading commercial banks. It was established
on 20th July 1908 under the Companies Act of 1887 Baroda as a private bank
and following nationalization became a wholly-owned Government bank in
1969. The initial capital invested was Rs. 10 Lakhs. The Maharaja was none
other than Sayajirao Gaekwad who, with his visionary insight, planned the
beginning of a reputed journey which over the years, came to be known as
the Bank of Baroda. During the period of 1913 to 1917; almost 87 banks in
India succumbed to a financial crisis. However, the Bank of Baroda survived
the economic depression by dint of its financial integrity, business prudence
and concern uncompromising concern about its customers and clients. This
has transcended down to the present ages and has become the motto of the
bank. Ever since its inception, the bank has been growing and expanding its
branches successfully. At the turn of a century, the bank has its presence in
25 countries across the world. Bank of Baroda has progressively taken a step
towards commitment and values by providing uncompromising standards of
service to its customers, stakeholders, employees and the like. From a small
building in this city of Gujarat, BOB bank has moved to the Bank of Baroda
corporate head office in Mumbai. The Bank of Baroda bankers have proven
their prudence with the amplifying success of BOB Bank India. The customer,
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share holders, employees and the corporate governing team are the true
recipients of the glory Bank of Baroda enjoys in India and across the globe.
The Bank of Baroda logo signifies the financial discretion of the bank. Present
day Bank of Baroda is the successor of the erstwhile "The Bank of Baroda
Limited" From its humble beginnings, the Bank has grown, over the years, to
emerge as an Indian Financial Powerhouse, with a network of over 3,025
branches in India across the length and breadth of the country and 74
overseas branches/foreign offices in 25 countries across 5 continents serving
a Global customer base of over 34 million. In tune with times and in response
to the emerging market requirements, the Bank has set up specialized
branches dedicated to specific Customer segments. Bank has also set-up
specialised Retail, Corporate and SME Loan factories across the country
which work on assembly line principle to reduce turnaround time for sanction
of retail and corporate loans. Bank of Baroda aims at providing it's people with
a space for development through continuous learning, performance
management and other people friendly policies. We are committed to provide
our people with an environment conducive to professional as well as personal
growth.
� VISION AND MISSION
VISION
It has been a long and eventful journey of almost a century across 25
countries. Starting in 1908 from a small building in Baroda to its new hi-rise
and hi-tech Baroda Corporate Centre in Mumbai is a saga of vision,
enterprise, financial prudence and corporate governance. It is a story scripted
in corporate wisdom and social pride. It is a story crafted in private capital,
princely patronage and state ownership. It is a story of ordinary bankers and
their extraordinary contribution in the ascent of Bank of Baroda to the
formidable heights of corporate glory. It is a story that needs to be shared with
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all those millions of people - customers, stakeholders, employees & the public
at large - who in ample measure, have contributed to the making of an
institution.
MISSION
“To be a top ranking National Bank of International Standards committed to
augmenting stake holders' value through concern, care and competence”
The logo of Bank of Baroda is a unique representation of a universal symbol.
It comprises dual ‘B’ letter forms that hold the rays of the rising sun. We call
this the Baroda Sun. The sun is an excellent representation of what the bank
stands for. It is the single most powerful source of light and energy – its far
reaching rays dispel darkness to illuminate everything they touch. At Bank of
Baroda, it seeks to be the sources that will help all stakeholders realize their
goals. To their customers, they seek to be a one-stop, reliable partner who will
help them address different financial needs. To their employees, they offer
rewarding careers and to our investors and business partners, maximum
return on their investment. The single-color, compelling vermillion palette has
been carefully chosen, for its distinctiveness as it stands for hope and energy.
Bank of Baroda is characterized by diversity. Their network of branches spans
geographical and cultural boundaries and rural-urban divides. Their
customers come from a wide spectrum of Industries and backgrounds. The
Baroda Sun is a fitting face for our brand because it is a universal symbol of
dynamism and optimism.
� BRANCH NETWORK
Bank of Baroda has an extensive network of 3094 branches spanning the
length and breadth of the country. There is a branch in the vicinity of everyone
in need of a banking solution. The global presence of Bank of Baroda has
made it India's very own International Bank. The Bank of Baroda branches
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and offices have countries like USA, UAE, UK, Singapore, Thailand, Malaysia,
Mauritius, South Africa, Kenya, Hong Kong, China, Bahrain, Australia etc.
Besides these Bank of Baroda has various subsidiaries including
• BOB Asset Management Co. Ltd.
• BOB Cards Ltd.
• BOB Capital Markets Ltd.
BOB has total assets in excess of Rs. 2.27 lakh crores, or Rs. 2,274 billion, a
network of over 3000 branches and offices, and about 1100+ ATMs. It offers a
wide range of banking products and financial services to corporate and retail
customers through a variety of delivery channels and through its specialized
subsidiaries and affiliates in the areas of investment banking, credit cards and
asset management.
� AWARDS
• BOB was among the top 10 marketers according to survey conducted by
Business Today.
• BOB received the Best Bank award in the home loan category at Outlook
Money NDTV Awards.
• The bank won “Elite Category Award” for excellence in marketing and
brand communication at Association of Business Communicators of India
awards.
� OUTLOOK
• BOB and Maruti Suzuki have entered into memorandum of
understanding for car financing. The tie up will cover 600 Maruti dealers
and all BOB branches in India.
• The PSU bank is set to enter life insurance with UK-based Legal and
General Group in first quarter of 2009.
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� AT A GLANCE
Date of Establishment : 1908 Revenue : 2980.17 ( USD in Millions ) Market Cap : 215299.714825 ( Rs. in Millions ) Corporate Address : : Baroda House,
Mandvi, Vadodara-390006, Gujarat.
www.bankofbaroda.com Management Details Chairperson & M D : M D Mallya Directors : A Somasundaram, Amarjit
Chopra,Amitabh Verma, Atul Agarwal, Deepak B Patak, Deepak B Pathak, Dharmendra Bhandari, M D Mallya, M L Jain, Masarrat Shahid, Maulin A Vaishnav, Milind N Nadkarni, R K Bakshi, Rajiv Kumar Bakshi, Ranjit Kumar Chatterjee, Srinath, V Santhanaraman
Business Operation : Nationalized public sector bank
Branches : 2884
Financials : Total Income Rs. 178492.354 Million ( year ending Mar 2009) Net Profit - Rs. 22272.018 Million ( year ending Mar 2009)
Company Secretary : M L Jain Bankers-Auditors : BC Jain & Co, Gupta Nayar & Co,
A Sachdev & Co, Ashwani & Associates, NC Banerjee & Co, SK Kapoor & Co
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2. CENTRAL BANK OF INDIA
� INTRODUCTION
Central bank of India is one of the oldest and largest commercial banks in
India . It is the wholly-owned public sector bank, based in Mumbai. It was
established in 1911 by Sir Sorabji Pochkhanawala and claims to have been
the first commercial Indian bank completely owned and managed by Indians.
The establishment of the Bank was the ultimate realisation of the dream of Sir
Sorabji Pochkhanawala, founder of the Bank. Sir Pherozesha Mehta was the
first Chairman of a truly 'Swadeshi Bank'. In fact, such was the extent of pride
felt by Sir Sorabji Pochkhanawala that he proclaimed Central Bank of India as
the 'property of the nation and the country's asset'. He also added that
'Central Bank of India lives on people's faith and regards itself as the people's
own bank'. During the past 99 years of history the Bank has weathered many
storms and faced many challenges. The Bank could successfully transform
every threat into business opportunity and excelled over its peers in the
Banking industry.
Central bank of India is one of 18 Public Sector banks in India to get
recapitalization finance from the government over the next 24 months. The
infusion of fund will improve the financial health of the banks as their capital
adequacy ratio (CAR) will be raised more than desired level of 12 percent.
The increase in CAR of the banks will also enable them to lend more money.
The CAR of Central Bank of India was less than 12 percent as on June 30
2006.
The wholly-owned public sector bank, based in Mumbai, will convert an
amount of Rs. 800 crore out of its Rs. 1,124.14-crore total equity capital into
perpetual non-cumulative preference shares.The preference shares would
carry an annual floating coupon rate of eight per cent, which would be
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benchmarked to 100 basis points above the repo rate. It will shore up the
balance-sheet of the bank and enable it to raise capital from the markets.
Out of 28 states, CBI has presence in 27 states and in 4 union territories. It
has a network of 3413 branches and 237 extension counters.
With 97 year of banking experience it has over 25 million account holders
which is one of the largest in the banking industry.
CBI has launched film personality Perizaad Zorabian as its brand
ambassador.
In 1923, it acquired the Tata Industrial Bank in the wake of the failure of the
Alliance Bank of Simla.
In 1969, the Indian Government nationalized the bank on 19 July, together
with 13 others.
During the past 98 years of history the Bank has weathered many storms and
faced many challenges. The Bank could successfully transform every threat
into business opportunity and excelled over its peers in the Banking industry.
Central Bank of India has a large network of 3161 branches and 270
extension counters spread over 27 States and 4 Union Territories. The Bank
has a total customer base of over 25 million account holders, which is one of
the largest in the banking industry.
� VISION
To emerge as a strong, vibrant and pro-active Bank/Financial Super Market
and to sitively contribute to the emerging needs of the economy through
consistent harmonization of human, financial and technological resources and
effective risk control systems.
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� MISSION
• To transform the customer banking experience into a fruitful and
enjoyable one.
• To leverage technology for efficient and effective delivery of all banking
services.
• To have bouquet of product and services tailor-made to meet customers
aspirations.
• The pan-India spread of branches across all the state of the country will
be utilized to further the socio economic objective of the Government of
India with emphasis on Financial Inclusion.
� MILESTONES AND AWARDS
• In the year 1921 bank introduced Home Savings Safe Deposit Scheme to
build saving/ thrift habits in all sections of the society.
• CBI in 1924 introduced exclusive ladies department to serve banking
services to women clientele.
• In 1926 it introduced Safe Deposit Locker facility and Rupee Travellers'
Cheques.
• In the year 1976 it established merchant banking cell.
• Central Bank of India launched Visa Platinum and Visa Gold cards
• Central Bank of India was conferred with the 1st Award under National
Awards for Excellence in MSE Lending based on its outstanding
performance in lending to Micro and Small Enterprises during the year
2007-08.
• On December 29, 2008, Kotak Mahindra Asset Management Company,
one of India's leading mutual fund houses, entered into a distribution tie-
up with Central Bank of India. Under the agreement Central Bank of India
will offer the entire bouquet of Kotak Mutual Fund products from the
Bank's branches.
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• The Bank has been in the forefront in business growth also. The total
business of the Bank sharply increased by 124% touching the level of
Rs.1,97,162/- as of 30 September, 2008 from Rs. 87,857 crore as of 30
June, 2005.
• The Core Banking System (CBS) of the Bank covers 77% of its business.
And, all CBS Branches have been enabled for both RTGS and NEFT
services.
• IT Enabled Financial Inclusion at Hoshangabad which will bring the
financial services to the door steps of those who are living in remotest
parts of the country The Bank will deliver deposit, loan and other financial
services by engaging Business Correspondent, who will use hand-held
mobile devices and issue Smart Cards to the customers.
• In order to develop rural entrepreneurship, the Bank launched a Rural
Development and Self Employment Training Institute (Rudseti) at
Hoshangabad. This will provide intensive entrepreneurship training to
rural youth, to enable them to take up vocational activities. The Bank has
already set Rudsetis at Kota and Muzaffarpur.
• A Financial Literacy and Credit Counseling Centre - Centsahyog was
launched at Vadkun in Thane District. This will provide free counseling to
the villagers on the various banking products, both deposits and loans
and also counseling to distressed borrowers, irrespective of whether they
are bank's clients or not.
• The Bank also launched Perizaad Zorabian, a well-known personality in
the film industry as its Brand Ambassador.
• Operating Profit of the Bank was up by 13.28% at Rs. 1,436.74 crore in
2008-09 over the Operating Profit of Rs. 1,268.30 crore in 2007-08.
• Net Profit of the Bank in 2008-09 went up to Rs. 571.24 crore up 3.83%
over the net profit of Rs. 550.16 crore in 2007-08.
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• Net Profit per employee as on March, 2009 increased to Rs. 1.71 lacs
from Rs.1.56 lacs as on March, 2008.
• The Bank had launched a special Housing Loan Scheme in January
2009 at 8.5% rate of interest for five years. The interest rate was brought
down to 8% for a period of one year.
• A special deposit scheme for children up to the age of 12 years was
launched as "Cent Bal Bhavishya" scheme with an insurance wrap in
December 2008.
• Bank has received 'Best Education Loan Provider" and runner up award
for "Best Home Loan Provider" by Outlook Money NDTV profit Award
2008".
• Bank ranked first amongst all Banc assurance partners of Life Insurance
Corporation of India.
� BRANCH NETWORK
Central Bank of India Branches are located is 27 states and 4 Union
Territories of India. It is one of the largest public sector banks operating
across the country. With a large branch network of 3563 branches along with
195 extensions counters in diverse regions, Central Bank of India delivers its
banking products and services to millions of customers. The bank also
assigns unique branch code to each and every branch in order to identify
them while making fund transfers and transactions.
Kolkata, Lucknow, Pune, Udupi and Vijayawada. It has branches network 981
spread over 24 states and 2 union territories. It has workforce of over 12,000
bankers. It has over 2000 service outlets across India. It has ATM network of
957 across country.
Corporation Bank,
Mangaladevi Temple Road,
Pandeshwar,
Mangalore - 575 001
Karnataka, India.
Tele: 91-824-2426416 to 420
Fax: 91-824-2440964
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The Bank has opened Representative Offices at Dubai and at Hong Kong
during the financial year. Presently, the Bank has a network of 1078 fully
automated CBS branches and 1035 ATMs across the country. The Bank has
also drawn up plans to open 700 new branches in the next five years. The
Bank has extended Branchless Banking units to 411 villages and has issued
Smart Cards to all account holders in these villages for enabling them to
operate their accounts at their doorsteps through the Business
Correspondents appointed by the Bank. Today Corporation Bank is the No1
public sector bank of India. The aggregate business of the bank is around
Rs.72, 000 crores. With employee strength of around 12,000 employees,
Corporation Bank Ltd. also being a Government of India undertaking attracts
job hunters and recruitments aspirants. The jobs are allotted on the basis of
exam conducted regularly on an All India basis.
Today, Corporation Bank India is identified with dynamic services of its young
and dedicated staffs, who know no bounds. It runs more than 600 ATMs
extending across 21 States and 2 Union Territories. It shares ATM network
with Andhra Bank, ING Vysya Bank Ltd. and IndusInd Bank Ltd.
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� AT A GLANCE
Date of Establishment : 1955
Revenue : 32.44 billion
Market Cap : 20,285.85 crore
Corporate Address : Star House C - 5, "G" Block, Bandra Kurla Complex, Bandra (East), Mumbai 400 051. www.corporationbank.in
Management Details
Chairperson & MD : O.P. Bhatt
Directors : Kalyaniwalla & Mistry, Dagliya & Co, B. M. Chatrath & Co.M. Verma & Associates, S. Krishnan Madan Verma, K. K. Soni C. R. Rema
Business Operation : Public Bank
Financials : Total Income - Rs. 113093.09
Crores (Year ending Mar 2009)
Net Profit - Rs. 1170.25 Crores
(Year ending Mar 2009)
Company Secretary : Kalyaniwalla & Mistry
Bankers & Auditors : M/S Agarwal & Saxena, M/S. Karnavat & Co, M/S L B Jha & Co, M/S Sankaran & Krishnan, M/S Chaturvedi & Shah, M/S Srb & Associates
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5. BANK OF INDIA
� INTRODUCTION
Bank of India is one of the premier and one of the oldest Commercial Banks in
India. Bank of India was established on 7th September 1906 by a group of
eminent businessmen from Mumbai. The bank was under private ownership
and control till July 1969 but after that was nationalised along with 13 other
banks. It began with a paid up capital of Rs. 50 lakhs and 50 employees, and
bank has made a rapid growth over the years and proved itself as a mighty
financial conglomerate. In business volume, the Bank occupies a premier
position among the nationalised banks. While firmly adhering to a policy of
prudence and caution, the Bank has been in the forefront of introducing
various innovative services and systems. Business has been conducted with
the successful blend of traditional values and ethics and the most modern
infrastructure. The Bank has been the first among the nationalised banks to
establish a fully computerised branch and ATM facility at the Mahalaxmi
Branch at Mumbai way back in 1989. The Bank is also a Founder Member of
SWIFT in India. It pioneered the introduction of the Health Code System in
1982, for evaluating/ rating its credit portfolio. The Bank's association with the
capital market goes back to 1921 when it entered into an agreement with the
Bombay Stock Exchange (BSE) to manage the BSE Clearing House. It is an
association that has blossomed into a joint venture with BSE, called the BOI
Shareholding Ltd. to extend depository services to the stock broking
community.
Bank of India is an India-based company. The company operates in three
business segments: Treasury Operations, Wholesale Banking and Retail
Banking. As of March 31, 2009, the Company’s customer deposits stood at
Rs.30221 crore. As of March 31, 2009, the company’s gross investment were
53,317.00 crore. The Bank has six credit card products. The Bank has also
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two affiliate Banks: Bank of Maharashtra and Tamilnadu Mercantile bank Ltd
issuing credit cards under the brand name India card. As of March 31, 2009,
the Company had 3021 branches in India. The bank has presence in 4
continents and 15 countries covering financial centres, such as London, New
York, Paris, Tokyo, Singapore and Hong Kong. During the fiscal year ended
March 31, 2009 (fiscal 2009), the Company opened 118 branches and
converted 20 extension counters into full-fledged branches. In its attempt
to provide its existing and new customers with a Core Banking System (CBS),
BOI has deployed a range of solutions from HP. It has signed a 10 year
contract with HP to provide services ranging from customer service and
managed services to consulting integration along with network management,
disaster recovery, business continuity and availability and system integration.
Competitive pressures from private sector banks and multinationals
compelled Bank of India to go ahead with its own technology-enabled
transformation. The Bank evaluated the option of choosing an IT partner to
manage all its infrastructure and application requirements including an IT
transformation around Core Banking.
According to P A. Kalyansundar, GM, IT, BoI, “With 1050 branches spread
across the country, it is very difficult to manage them. With distributed
database, separate LAN and no centralised system among the branches, the
top level management faced several problems while taking any decisions. To
effectively meet the ever-growing challenges and competition, the Bank made
a good headway in bringing about technological up-gradation. MIS and critical
functions of controlling offices were computerised. Further, the bank wanted
to move to the next level of IT enablement through the implementation of Core
Banking System (CBS) thereby making a paradigm shift from branch
automation to bank automation.”
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� VISION
"To become the bank of choice for corporate, medium businesses and up
market retail customers and to provide cost effective developmental banking
for small business, mass market and rural markets"
� MISSION
"To provide superior, proactive banking services to niche markets globally,
while providing cost-effective, responsive services to others in our role as a
development bank, and in so doing, meet the requirements of our
stakeholders".
� BRANCH NETWORK
Bank of India Branches spread all over India. Bank of India is one of the
premier and one of the oldest Commercial Banks in India. Today the Bank
has over 2884 branches spread all over India and 27 branches/offices
overseas - in 10 countries, spanning all time zones. These branches are
controlled through 48 Zonal Offices .The Bank has a pre-eminent position in
both wholesale banking and retail banking in India. BOI has branches for
Commercial & Personal Banking, Corporate Banking, Overseas Banking,
Capital Market, Merchant Banking and specialised branches for asset
recovery, small scale industries, hi-tech agricultural finance, lease finance and
treasury.
In its attempt to provide its existing and new customers with a Core Banking
System (CBS), BoI has deployed a range of solutions from HP. It has signed
a 10 year contract with HP to provide services ranging from customer service
and managed services to consulting integration along with network
management, disaster recovery, business continuity and availability and
system integration.
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Multi Branch Banking (Anywhere Banking) service is available to customers of
networked branches of the Bank. Under this service, the customer of one
branch will be able to transact on his account, from any other networked
branch of the Bank. This facility is at present available at 200 cities/towns
across the country. Bank of India was established in 1906 in Mumbai. Its
present head office is the same branch in Mumbai. The address of the main
branch is:
Bank of India
C-5 Star House, G Block
Bandra-Kurla Complex
Bandra (East)
Mumbai 400 051
P: +9122.66684444
Today the expanse of Bank of India spreads to 48 zonal offices. Each zonal
office manages the branches under its zone. Bank of India has a total of 2644
branches in India. The total number of employee as on 31-03-2009 was
40155.
Bank of India Overseas Branches
Bank of India is accredited to be the first Indian Bank to open an overseas
branch that was in London, UK in 1946 and also the first Indian bank in
Europe with a branch office in Paris in 1974. The global presence of Bank of
India is marked by 23 branches and offices along with three representative
offices in key business and trading centres of the world like New York (USA),
London (UK), Paris (France), Tokyo (Japan), Hong Kong (China), Singapore,
Kenya, Dubai (UAE), Canada etc.
Bank of India was the first Bank in India to open branch office outside the
country, at London, in 1946, and even it is the first to open a branch office in
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Europe, Paris in 1974. The international business accounts for around
20.10% of Bank's total business.
Bank of India: First to Launch a Fully Computerized Branch
Bank of India is the first nationalized bank in India to have set up a fully
computerized branch and an ATM centre. It is also the founder member of
SWIFT in India with the introduction of Health Code System in 1982. Bank of
India also offers depository services to the stock broking community under the
Bombay Stock Exchange (BSE) and Bank of India joint venture called the BOI
Shareholding Ltd.
The current chairman of Bank of India Mr. T.S. Narayanaswami emphasizes
on building customer relations and creating a long-term relationship offering
the best customer care. This has resulted in tremendous growth of Bank of
India in the Indian as well as global markets.
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� AT A GLANCE
Date of Establishment : 1906
Revenue : 24393.50 crore
Market Cap : 20,228.85 crore
Corporate Address : Star House C - 5, "G" Block, Bandra Kurla Complex, Bandra (East), Mumbai 400 051. www.bankofindia.com
Management Details
Chairperson & MD : Shri Alok Kumar Misra
Directors : Shri. N. Seshadri, Shri. M S Raghavan Shri B P Sharma, Shri Kuttappan, Shri Pramod K. Panda, Shri Harvinder Singh
Business Operation : Public Bank
Financials : Total Income – Rs 2488.71
Crores (Year ending Mar 2009)
Net Profit - Rs. 1741.07 Crores
(Year ending Mar 2009)
Company Secretary : Shri. M S Raghavan
Bankers & Auditors : M/S Agarwal & Saxena, M/S. Karnavat & Co, M/S L B Jha & Co, M/S Sankaran & Krishnan, M/S Chaturvedi & Shah, M/S Srb & Associates
102
6. STATE BANK OF INDIA
� INTRODUCTION
The origin of the State Bank of India goes back to the first decade of the
nineteenth century with the establishment of the Bank of Calcutta in 1806 in
Calcutta. Three years later the bank received its charter and was re-designed
as the Bank of Bengal (2 January 1809). A unique institution, it was the first
joint-stock bank of British India sponsored by the Government of Bengal. The
Bank of Bombay (15 April 1840) and the Bank of Madras (1 July 1843)
followed the Bank of Bengal. These three banks remained at the apex of
modern banking in India till their amalgamation as the Imperial Bank of India
on 27 January 1921.
The State Bank of India, the country’s oldest Bank and a premier in terms of
balance sheet size, number of branches, market capitalization and profits is
today going through a momentous phase of Change and Transformation – the
two hundred year old Public sector behemoth is today stirring out of its public
sector legacy and moving with an agility to give the private and foreign banks
a run for their money.
An important turning point in the history of State Bank of India is the launch of
the first Five Year Plan of independent India, in 1951. The Plan aimed at
serving the Indian economy in general and the rural sector of the country, in
particular. Until the Plan, the commercial banks of the country, including the
Imperial Bank of India, confined their services to the urban sector. Moreover,
they were not equipped to respond to the growing needs of the economic
revival taking shape in the rural areas of the country. Therefore, in order to
serve the economy as a whole and rural sector in particular, the All India
Rural Credit Survey Committee recommended the formation of a state-
partnered and state-sponsored bank. The All India Rural Credit Survey
103
Committee proposed the take over of the Imperial Bank of India, and
integrating with it, the former state-owned or state-associate banks.
Subsequently, an Act was passed in the Parliament of India in May 1955. As
a result, the State Bank of India (SBI) was established on 1 July 1955. This
resulted in making the State Bank of India more powerful, because as much
as a quarter of the resources of the Indian banking system were controlled
directly by the State. Later on, the State Bank of India (Subsidiary Banks) Act
was passed in 1959. The Act enabled the State Bank of India to make the
eight former State-associated banks as its subsidiaries. The bank is entering
into many new businesses with strategic tie ups – Pension Funds, General
Insurance, Custodial Services, Private Equity, Mobile Banking, Point of Sale
Merchant Acquisition, Advisory Services, structured products etc – each one
of these initiatives having a huge potential for growth. The Bank is forging
ahead with cutting edge technology and innovative new banking models, to
expand its Rural Banking base, looking at the vast untapped potential in the
hinterland and proposes to cover 100,000 villages in the next two years.
Throughout all this change, the Bank is also attempting to change old
mindsets, attitudes and take all employees together on this exciting road to
Transformation. In a recently concluded mass internal communication
programme termed ‘Parivartan’ the Bank rolled out over 3300 two day
workshops across the country and covered over 130,000 employees in a
period of 100 days using about 400 Trainers, to drive home the message of
Change and inclusiveness. The workshops fired the imagination of the
employees with some other banks in India as well as other Public Sector
Organizations seeking to emulate the program. The CNN IBN, Network 18
recognized this momentous transformation journey, the State Bank of India is
undertaking, and has awarded the prestigious Indian of the Year, to its
Chairman, Mr. O. P. Bhatt in January 2008.
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STATE BANK OF INDIA AFFLIATES
1. Banking Subsidiaries
• State Bank of Bikaner and Jaipur (SBBJ)
• State Bank of Hyderabad (SBH)
• State Bank of Indore (SBIr)
• State Bank of Mysore (SBM)
• State Bank of Patiala (SBP)
• State Bank of Travancore (SBT)
2. Foreign Subsidiaries
• SBI International (Maturities) Ltd., offshore bank
3. Non-banking Subsidiaries
• SBI Capital Markets Ltd.
• SBI Fund management private Ltd.
• SBI Factors and Commercial services pvt.Ltd.
• SBI DFHI Ltd.
4. Joint Ventures
• SBI Life Insurance Company Ltd. (SBI LIFE)
� VISION
To be the first choice solution provider for all banking Services. To be a
symbol of trust, efficiency and courteous service. To protect and promote
interests of all Stakeholders through well trained and, upright and dedicated
professionals. To strive for constant improvement in products, processes and
delivery channels.
� MISSION
To create a strong and vibrant banking institution with global reach, having
world class technology, products and based on the Core Values of Integrity,
Customer care and sound Corporate Governance.
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� AWARDS AND MILESTONES
• Business Standard has awarded the Banker of the Year Award to Shri
O.P.Bhatt.
• June ’08 Awards & Recognitions CNN IBN Network 18 has selected
Shri O.P.Bhatt as Indian of the Year – Business 2007.
• Asian Centre for Corporate Governance & Sustainability and Indian
Merchants Chamber has awarded the Transformational Leader Award
2007.
• State Bank of India ranked as NO.1 in the 4Ps B & M & ICMR Survey
on India's Best Marketed Banks in August-2009.
• Shri Om Prakash Bhatt declared as one of the '25 Most Valuable
Indians' By the Week Magazine for 2009.
• State Bank of India has been adjudged The Best Bank 2009 By
Business India in August-2009.
• It bagged ‘Most Preferred Bank’ and ‘Most Preferred Brand for Home
Loan’ at CNBC Awaaz Consumer Awards.
• It became the only Indian bank to get listed in the Fortune Global 500
List.
• It was awarded Golden award for being among the two most trusted
banks in India by Readers Digest.
• SBI is ranked 6th in the Economic Times Market Cap List.
• Shri Om Prakash Bhatt declared as one of the "25 MOST VALUABLE
INDIANS" by the Week Magazine for 2009(Published in August-2009
Issue) State Bank of India is the country's premier financial institution. It
is a crucial wheel in the economy with the ability to move markets. SBI
has produced many stalwarts, and its chairman Om Prakash Bhatt
stands out among them. For Bhatt has put the bank on a high growth
path.
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• State Bank of India Voted THE BEST BANK in Cash Management
Services in local currency by Asia Money.
• State Bank of India wins 2 awards for Best Rural Banking Initiative and
Best IT Architecture State Bank of India also improved its ranking in
“Fortune” 500 Global List, “Forbes” list of 2000 largest companies in the
world, “Banker” list of top1000 world banks, Brand Finance – Global
500 Financial Brand recognition, to name a few.
• The Bank was voted, for the third year in a row, as the “Most Preferred
Housing Loan” and “Most Preferred Bank” in the CNBC AWAAZ
Consumer Awards in a survey conducted by CNBC TV18 in association
with AG Nielsen & Company. The Bank was also awarded the “Best
Home Loan Provider” as well as “The Best Bank” – by Outlook Money
Awards, 2008.
• SBI has been rated as the Best Public Sector Bank for Rural Reach by
Dun & Brad street. The Bank has won awards for topping SHG-Bank
Credit linkage in Orissa, Jharkhand, Maharashtra, Uttarakhand, Tamil
Nadu and Uttar Pradesh.
• The Bank was awarded Reader’s Digest “Pegasus Corporate Social
Responsibility Award 2007” in recognition of its contribution towards
Rural Community Development.
• The Bank was conferred the following National awards by the
Government of India (GOI), Ministry of Micro Small and Medium
Enterprises for the FY 2007-08.
(i) First under "National Awards for excellence in lending to Micro
Enterprises".
(ii) Second under "National Awards for Excellence in MSE Lending".
(ii) The Bank was also presented an award for outstanding
performance in the area of finance to SMEs by Dun &
Bradstreet.
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� BRANCH NETWORK
In the early 1960s, the State Bank's network already contained nearly 500
branches and sub-offices, as well as the three original head offices inherited
from the presidency bank era. Yet the State Bank now began an era of
expansion, acting as a motor for India's industrial and agricultural
development that was to transform it into one of the world's largest financial
networks. Indeed, by the early 1990s, the State Bank counted nearly 15,000
branches and offices throughout India, giving it the world's single largest
branch network.
SBI had long been present overseas, operating some 50 offices in 34
countries, including full-fledged subsidiaries in the United Kingdom, the United
States, and elsewhere. In 1995 the bank set up a new subsidiary, SBI
Commercial and International Bank Ltd., to back its corporate and
international banking services. The bank also extended its international
network into new markets such as Russia, China, and South Africa.
State Bank of India, the country’s largest lender, plans to nearly treble its
branch network to 50,000 by the end of the current decade, from 17,075 at
present. At present, SBI has 12,207 domestic and 141 overseas branches,
while the remaining ones belong to its six associate banks. There are 250
million accounts. The bank has plans to merge the associate banks with itself
over the next few years. Only Industrial and Commercial Bank of China, which
had 16,386 branches at the end of 2008 and provided services to 190 million
personal clients and 3.1 million corporate clients, matches SBI’s network. The
branch expansion plan is a reversal of SBI’s strategy at the start of the
decade. Like most banks then, SBI was focusing on its existing network and
generating more business from it. Besides, technology was expected to help
banks reach more customers. But, over the past few years, banks did a U-turn
and started opening branches in large numbers again. What helped was
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permission from the government to recruit employees. This year alone, SBI
opened 975 branches; it intends to add another 1,000 during 2010-11. At the
start of the decade, SBI had around 9,100 branches. In recent months, the
Reserve Bank of India also liberalized its branch licensing norms, allowing
domestic banks to freely open branches in towns with a population less than
50,000.
The bank’s chairman O. P. Bhatt said the plan to open 33,000 branches was
not ambitious. Despite the thrust on financial inclusion by banks, a large
number of villages still did not have any banking service and the branches will
meet a part of the new client base that is coming. “So, you need more cover
areas which are bankable,” he said.
The corporate center of SBI is located in Mumbai. In order to cater to different
functions, there are several other establishments in and outside Mumbai,
apart from the corporate center. The bank boasts of having as many as 14
local head offices and 57 Zonal Offices, located at major cities throughout
India.
Main office of State bank of India
State Bank of India
Central Office, 8th Fl., Madame Cama Road
Mumbai 400021, India
Tel. +91-22-2288-3888
Fax +91-22-2285-5348
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� AT A GLANCE
Date of Establishment : 1955
Revenue : US$ 36.950 billion
Market Cap : Rs. 89,522.50 crore
Corporate Address : State Bank Bhavan, Corporate Centre,,Madame Cama Marg, Mumbai Maharashtra 400021 www.sbi.com
Management Details
Chairperson & MD : Diwakar Gupta
Directors : Pratip Chaudhuri, Hemant G. Contractor, Diwakar Gupta, A Krishna Kumar, Dileep C Choksi,D. Sundaram, Parthasarathy Iyengar G. D. Nadaf, Rashpal Malhotra, D. K. Mittal Subir V. Gokarn
Business Operation : Nationalized Public Bank
Financials : Total Income – Rs 3090.00
Crores (Year ending Mar 2009)
Net Profit - Rs. 1741.07 Crores
(Year ending Mar 2009)
Company Secretary : Shri. M S Raghavan
Bankers & Auditors : Viraf Mehta P. Manohara Gupta, S. Krishnan, Madan Verma, K. K. Soni C. R. Rem
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7. CANARA BANK
� INTRODUCTION
Canara Bank is an India-based commercial bank and one of the renowned
banks in the country Canara Bank was established in 1906. It is one of the
largest commercial banks of India. Canara Bank was nationalized in 1969
along with 13 other banks. Widely known for customer centricity, Canara Bank
was founded by Shri Ammembal Subba Rao Pai, a great visionary and
philanthropist, in July 1906, at Mangalore, then a small port in Karnataka. The
bank has gone through the various phases of its growth trajectory over
hundred years of its existence. Growth of Canara Bank was phenomenal,
especially after nationalization in the year 1969, attaining the status of a
national level player in terms of geographical reach and clientele segments.
Eighties was characterized by business diversification for the Bank. In June
2006, the Bank completed a century of operation in the Indian banking
industry. The eventful journey of the Bank has been characterized by several
memorable milestones. Today, Canara Bank occupies a premier position in
the committee of Indian banks. With an unbroken record of profits since its
inception, Canara Bank has several firsts to its credit. These include:
• Launching of Inter-City ATM Network
• Obtaining ISO Certification for a Branch
• Articulation of ‘Good Banking’ – Bank’s Citizen Charter
• Commissioning of Exclusive Mahila Banking Branch
• Launching of Exclusive Subsidiary for IT Consultancy
• Issuing Credit Card for Farmers
• Providing Agricultural Consultancy Services
Not just in commercial banking, the Bank has also carved a distinctive mark,
in various corporate social responsibilities, namely, serving national priorities,
promoting rural development, enhancing rural self-employment through
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several training institutes and spearheading financial inclusion objective.
Promoting an inclusive growth strategy, which has been formed as the basic
plank of national policy agenda today, is in fact deeply rooted in the Bank's
founding principles. "A good bank is not only the financial heart of the
community, but also one with an obligation of helping in every possible
manner to improve the economic conditions of the common people". These
insightful words of our founder continue to resonate even today in serving the
society with a purpose. The growth story of Canara Bank in its first century
was due, among others, to the continued patronage of its valued customers,
stakeholders, committed staff and uncanny leadership ability demonstrated by
its leaders at the helm of affairs. We strongly believe that the next century is
going to be equally rewarding and eventful not only in service of the nation but
also in helping the Bank emerge as a "Global Bank with Best Practices". This
justifiable belief is founded on strong fundamentals, customer centricity,
enlightened leadership and a family like work culture.
� Founding Principles
1. To remove superstition and ignorance.
2. To spread education among all to sub-serve the first principle.
3. To inculcate the habit of thrift and savings.
4. To transform the financial institution not only as the financial heart of
the community but the social heart as well.
5. To assist the needy.
6. To work with sense of service and dedication.
7. To develop a concern for fellow human being and sensitivity to the
surroundings with a view to make changes/remove hardships and
sufferings.
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Sound founding principles, enlightened leadership, unique work culture and
remarkable adaptability to changing banking environment have enabled
Canara Bank to be a frontline banking institution of global standards.
� VISION
To emerge as a ‘Best Practices Bank’ by pursuing global benchmarks in
profitability, operational efficiency, asset quality, risk management and
expanding the global reach.
� MISSION
To provide quality banking services with enhanced customer orientation,
higher value creation for stakeholders and to continue as a responsive
corporate social citizen by effectively blending commercial pursuits with social
banking.
� AWARDS
• First National Award, instituted by the Ministry of Micro, Small &
Medium Enterprises, Govt. of India for 'Excellence in Micro & Small
Enterprises (MSE) Lending' for 2006-07.
• 'Golden Peacock Award for Corporate Social Responsibility' for the year
2007. Canara Bank is the first PSB to receive the award since its
institution in the year 1991.
• ‘Golden Peacock National Training Award-2007’, instituted by the
Institute of Directors, New Delhi, a pioneer in Quality Revolution.
• Conferred the Business Superbrands Status for 2008.
• 'The Organization of the Year Award- for PR Excellence', instituted by
Public Relations Council of India.
• Excellence in the field of Khadi & Village Industries in South Zone for
the year 2006-07, instituted by Khadi & Village Industries Commission,
Ministry of Micro, Small & Medium Enterprises, Government of India.
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• Conferred 'First Rank' in India's Best Banks awards under the category
'Strength and Soundness' for 2006-07 by a survey conducted by Ernst
& Young.
• Best Performing Bank under Rural Employment Generation
Programme, (REGP) of Khadi and Village Industries Commission
(KVIC), in South Zone for the year 2007-08, instituted by the Ministry of
MSME, Government of India.
• Golden Peacock National Training Award 2008 for excellence in
training.
• Global HR excellence in Training, an award conferred by the Asia
Pacific HR Congress, the largest rendezvous of HR Professionals, at its
Employer Branding Talent Management Congress held on 22nd and
23rd August 2008, Delhi.
• Best Corporate Social Responsibility Practice Award, instituted by BSE,
NASSCOM and Times Foundation.
• The Bank won two Silver Corporate Collateral Awards for Best
Corporate Ad in the Print Media and Best Corporate Film on Corporate
Social Responsibility at the Public Relations Council of India Awards
2009.
• Best Bank in South Zone Award for the year 2008-09 in respect of
lending under KVIC and PMEGP Schemes. The award was handed
over by Dr. Manmohan Singh, Hon’ble Prime Minister of India
� BRANCH NETWORK
It is one of the largest commercial banks of India. Canara Bank was
nationalized in 1969 along with 13 other banks. The branch network of
Canara Bank includes 2542 branches with the head office in Bangalore. An
international division of Canara Bank was established in 1976. The present
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international branches of Canara Bank include branches in major trade center
like London, Singapore, Dubai and Hong Kong.
The all India network of Canara Bank boasts of multiple branches in all the
major cities like Chennai, Pune, Bangalore, Mumbai, New Delhi, Gurgaon,
Kolkata, Lucknow and Hyderabad. The Canara Bank official site gives you an
ATM and branch locator that can give you the exact location and address of
your nearest Canara Bank branches and ATM's.
An international division of Canara Bank was established in 1976. The
present international branches of Canara Bank include branches in major
trade centers like London, Singapore, Dubai and Hong Kong. The total
number of employees are 44090.
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� AT A GLANCE
Date of Establishment : June 1906
Revenue : 3380.54 (USD in Millions)
Market Cap : 159531 (Rs. in Millions)
Corporate Address : 112 J C Road, Bengaluru-560002,
Karnataka.
www.canarabank.com
Management Details
Chairperson & MD : A C Mahajan
Directors : A C Mahajan, Ajay Mathur,
Devender Dass
Business Operation : Bank – Public
Financials : Total Income - Rs. 194302.666 Million
(Year ending Mar 2009)
Net Profit - Rs. 20724.2 Million
(year ending Mar 2009)
Company Secretary : S R Krishnan
Bankers Auditor : SN Mukherji & Co, De Chakraborty &
Sen, Satyanarayana
116
8. PUNJAB NATIONAL BANK
� INTRODUCTION
History of the Punjab National Bank can be traced to its inception in the year
1894. It opened with a single branch in Lahore and in 1904 two more
branches were opened Karachi and PeshawarThe Punjab National Bank is
popularly known as the PNB and has been serving its illustrious list of
customers since 1894. The PNB was set up as a result of the Indian
Companies Act and was founded by Dyal Singh Majithia and Lala Harkrishen
Lal. Its main office then was in Lahore, present day Pakistan. Owing to its
efficient operations and increasing list of clientele, the PNB has been awarded
the status of being the second largest government owned commercial bank in
India. PNB was founded in the year 1895 at Lahore (presently in Pakistan) as
an off-shoot of the Swadeshi Movement. Among the inspired founders were
Directors : A Ganesa Rathnam, A S Bhattacharya, A Subramanian, Bhattacharya, Ashok Gupta, C K Ranganathan, C. R. Gopalasundaram, G. Charath Chandran, Gundmi Sudhakar Rao, Kumar Sanjay Krishna, M Jayanath, M Jayanth, M S Sundara Rajan, Narendra Kumar Agarwal, Narendra Kumar Agrawal, Saria Khan, Shaktikanta Das, T M Bhasin, T T. Natarajan, V Rama Gopal
Business Operation : Bank – Public Financials : Total Income - Rs. 90307.775 Million
(Year ending Mar 2010)
Net Profit - Rs. 15549.871 Million
(Year ending Mar 2010)
Company Secretary : A Ganesa Rathnam
Bankers Auditors : PL Mittal & Co, Viswanathan & Swaminathan, o, Suri & Co, Kalyanasundaram & Co, Chandran & Raman
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� REFERENCES
1. Kothari, C. R., “Research Methodology – Methods and Techniques”, New
Age International Publishers, New Delhi, Second Revised Edition, 2009,
pp. 132-136.
2. Annual reports of Selected Nationalized Banks (from 2001 to 2010)