organisational study tamilnad mercantile bank ltd
TRANSCRIPT
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A STUDY ON THE GENESIS, STRUCTURE, PRODUCTS AND SERVICES AND PRACTICES FOLLOWED IN TMB
LTD.
AGNES MIRIAM .I312215631004
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Indian Banking Industry First Bank – General Bank of India – 1786 East India Company1. Bank of Calcutta – 18092. Bank of Bombay – 18403. Bank of Madras – 1843 Allahabad Bank – 1865 – first bank run by Indians.
1949: Enactment of Banking Regulation Act. 1955: Nationalization of State Bank of India. 1959: Nationalization of SBI subsidiaries. 1961: Insurance cover extended to deposits. 1969: Nationalization of 14 major Banks. 1971: Creation of credit guarantee corporation. 1975: Creation of regional rural banks. 1980: Nationalization of seven banks with deposits over
200 Crores.
Presidency Banks
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RESERVE BANK OF INDIA
SCHEDULED BANKS
SCHEDULED COMMERCIAL BANKS
(RRBs & LABs)
PUBLIC SECTOR
BANKS(26)
CO -OPERATIVE
BANKS
NON SCHEDULED BANKS
FOREIGN BANKS(36)
REGIONAL RURAL
BANKS(82)
PRIVATE SECTOR
BANKS(21)
GOVT OWNED BANKS(2)
SBI & its SUBSIDIARIES(
6)
NATIONALISED BANKS(19)
NEW PRIVATE SECTOR
BANKS(7)
OLD PRIVATE SECTOR BANKS
(14)
Fig: Structure of Indian Banking System
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Major players SBI HDFC Bank ICICI Bank Axis Bank Kotak Mahindra Bank YES Bank IDBI Bank Punjab National Bank Canara Bank
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Tamilnad Mercantile Bank Ltd. an old private sector bank that comes under the second
schedule of Reserve Bank of India. started back in 1921 by the Nadar community - “The Nadar
Bank Ltd.” registered on 11.05.1921. became a scheduled bank under the Reserve bank of India
Act on 11.05.1935. changed its name to Tamilnad Mercantile Bank Ltd. on
26.11.1962. MD and CEO: Shri. H. S. Upendra Kamath. Board :13 directors including the MD&CEO and two nominees
from RBI Head Office: Thoothukudi, Tamil Nadu
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Mission and Vision VISION “To be a progressive bank with strong brand
equity, enhancing value for all the stake holders through excellence in performance and good governance.”
MISSION “We shall provide exemplary service with
highest delivery efficiency, based on ethics, honesty and sincerity with cutting edge technology and emerge as a truly national bank.”
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Departments Accounts ATM Cell Business Development Credit Credit Audit & Monitoring Customer Service DP Cell Establishment Department Human Resource
Development Information Technology Inspection
Integrated Treasury International Banking
Division KYC/AML Cell Legal Cell Planning Recovery Risk Management RTGS Cell Secretarial Vigilance
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Products and Services
PRODUCTS and SERVICES OF
TMB
BUSINESS and CORPORATE
BANKING
N.R.I. and INTERNATIONAL
BANKINGPERSONAL BANKING
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Products and ServicesPERSONAL BANKING
RETAIL SERVICESRETAIL LOANS/CREDIT
RECURRING DEPOSITSFIXED DEPOSITSSAVINGS ACCOUNT
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Products and ServicesN.R.I. and
INTERNATIONAL BANKING
TRAVEL CARDSN.R.I. LOANS/ CREDITN.R.I. ACCOUNTS
FOREX SERVICESMONEY TRANSFER
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Products and Services
BUSINESS and CORPORATE
BANKING
CORPORATE BUSINESS SERVICES
BUSINESS/ COMMERCIAL
LOANSBUSINESS ACCOUNTS
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Products and Services
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Organizational Structure BOARD OF DIRECTORS
MD and CEO
BRANCH MANAGER
GENERAL MANAGER
REGIONAL MANAGER
Fig: Hierarchical Structure
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BOARD OF DIRECTORS
MD and CEO
GENERAL MANAGER
GENERAL MANAGER
GENERAL MANAGER
GENERAL MANAGER
GENERAL MANAGER
CREDIT
BUSINESS DEVELOPMENT,
PLANNING,CUSTOMER
SERVICE, RISK MANAGEMENT
AND ACCOUNTS.
HRD,INTEGRATED TREASURY,
INTERNATIONAL BANKING
DIVISION, DP CELL,RTGS
CELL,ESTABLISHMENT DEPT. AND
INSPECTION.
INFORMATION TECHNOLOGY
AND VIGILANCE
RECOVERY,CREDIT AUDIT
& MONITORING,
KYC/AML CELL,MIS & LEGAL CELL
Fig: Functional Structure
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Branch Network Branches: 488 Regional Offices: 10 Extension Counters: 11 ATMs: 1031 CPCs: 6 Currency Chests: 4 Service Branch: 1 E-lobbies:11 SME Branch: 11
•PERSONNEL: 4119•Officers: 1421•Clerks: 2099•Sub-staff: 599
Per employee business: Rs. 12.85
crores
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Financial Highlights (Rs. in crores) Total Business : Rs. 52,946. 58 Deposits : Rs. 30,368.87 Advances : Rs. 22,577.71 Forex Turnover : Rs. 23,388.68 Net Profit : Rs. 402.16 Operating Profit : Rs. 725.49 Return on Assets : 1.23% Return on Equity : 14.39% Net Interest Margin : 3.25% Gross NPA : 1.84 % Net NPA : 0.89% Earnings per share: Rs. 14,138.
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Awards and Recognitions “Best Bank Award” among all private
sector banks under Atal Pension Yojna(APY) for the period 01.12.2015 to 09.01.2016.
ASSOCHAM India Award 2015 for social banking excellence under Small Banks category.
SFBCK Banking Excellence Award 2015 for 3rd best bank at national level under private sector banks for FY 2014 – 15.
The Financial Express in its survey on its survey India’s Best Banks 2013 ranked TMB as #1 among Old Private Sector Banks
Best Bank in Rural Reach for the year 2009, by Dun & Bradstreet
Business World/ Price Waterhouse Coopers Survey 2010 ranked TMB as #1 in Performance among Small Size Banks.
TMB’s Certificate of Deposits are rated by CRISIL as A1+ (Very Strong).
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CSR Policy Complies with the requirements of
section 135 of the Companies Act, 2013 and the Companies Rules, 2014 and allied notifications issued by the Government of India
CSR Committee : 7 members Various activities are done by the bank
as per the Schedule VII of the Companies Act, 2013
CSR Budget : not being lower than 2% of the average annual net profits
Places of Operation : India only. Recent activities: Rs. 2 crores for the
Chennai Flood Relief in December 2015
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Nagercoil Branch fifth branch. started functioning right
from 22.11.1956. Under the control of
Trivandrum region. Branch Code: 005 IFSC No.: TMBL0000005 SWIFT (of TMB Ltd.):
TMBLINBBCHE Authorized Dealer Number:
620014-9360006 BSR Code: 6910333 MICR Code: 629060002
No. of Safe Lockers: 250 No. of ATMs under control: 3 No. of Kiosks present in the
branch:1. Cash Deposit kiosks2. Cash Deposit and Receipt kiosk3. Coin Vending Machine4. Cheque Deposit kiosk5. Passbook Printing Kiosk PRESENT BUSINESS (as on
15.07.2016) 1. Customer Base : Nearly 22,0002. Total Deposits: Rs. 207. 92
crores 3. Total Advances: Rs. 122.27
crores
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Structure of the branch
CHIEF MANAGER
MANAGER (DEPOSITS)
AM (LOANS)AM (JEWEL
LOAN,RTGS,NEFT,DD,TRANSFER
)
AM (FOREX and NRI
BANKING)CLERK
(DEPOSITS)AM (CASA)
CLERK CLERK
CLERK
CLERK
CLERK
CLERK
CLERK
CLERK
JEWEL APPRAISER
CLERK
CASHIER (RECEIPT)
CASHIER (PAYMENT)
CLERK (SA)
CLERK (CA)
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Sections in the Branch Term Deposits Current Accounts/Savings Account (CASA) Loans Cash Jewel Loan Foreign Exchange and N.R.I. Banking RTGS, NEFT, Transfer Net Banking and Mobile Banking
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Working Capital Assessment TMB Ltd. follows the Tandon Committee’s ii
method of lending i.e. the modified MPBF system of assessment.
Layout of the method:
Total Current Assets
Less: Current liabilities other than bank borrowingsA
Less: 25% of TCA (or) Available net working capital(whichever is higher)Maximum Permissible Bank Finance (MPBF)
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Term Loan Assessment Project report must be submitted. Project implementation schedule - Critical Path Method
(CPM) or Project Evaluation Review Technique (PERT). Projected profitability statements of the term of the loan. Debt service coverage ratio - determine the period of
repayment of the loan.
Benchmark Annual DSCR is 1.5:1 ( Every year DSCR should
not go below 1.25:1) Lower ratio - inability to repay as per schedule. Higher ratio - ability to repay earlier than the schedule time.
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NPA Recovery Mechanisms Thorough credit assessment
before disbursement of loan. 1 month - irregular Continuously for 90 days - NPA Registered Demand Notice
Letter to borrower – 60 days. Possession of property
mortgaged to the bank. No re-possession without
giving prior notice. Re-possession of security –
realization of the dues. Carried out as per the
SARFAESI Act, 2002 without the intervention of the court.
Valuation and sale – as per law. Sale – Auctions – Auction
Notice. Filing of suit – Agricultural land . Loan amount – Rs. 10 lakhs –
DRT – 1993. Genuine cases – exemptions Recovery camps. Employees appointed for
recovery purposes. Contacted through phone or
meet at residence. Respect the privacy of the
customers. Documents every effort made
for recovery.
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Best practices followed in the branch Loan Mela, Agricultural Loan Mela, MSME Mela etc. to
increase advances with a motive of improving their overall business.
CASA Campaigns and other such campaigns - general public, students and senior citizens.
Names of the Best Performers during these campaigns in the branch’s notice board.
monetary and non monetary awards. Financial Inclusion Programmes (FIP). Regular meetings with the customers and NRI customers -
tools for customer retention. Customer grievance box - the grievances are redressed
immediately. Job Rotation is done once in 6 months.
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Suggestions to the branch Cross Selling - employees - good rapport with the
customers - utilized to the maximum to cross sell their products.
Reduce the waiting time of the customers in the queue.
The queues in the counters especially the cash payment counter in very long during peak hours.
Alterative arrangements can be made to reduce the waiting time of the customers.
Customers - directed to use the various kiosks present in the branch to avoid long queues during peak hours.
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Key learning in the study Indian Banking Industry, its structure and the major players. Genesis and Growth of Tamilnad Mercantile Bank Ltd. Various products and services of TMB Ltd. and how it differentiates
its products from that of others. SWOT Analysis. Competitiveness of the Indian Banking Industry was studied using
Porter’s five forces analysis. Financial performance of the bank. Various departments of TMB Ltd. and its functions. Basic banking operations - Nagercoil branch. RBI norms and Regulations on how a bank should function, how it
should offer products and services to the customers, key ratios to be maintained by the bank, periodic reporting of the bank to the RBI.
Working Capital and Term Loan Assessment methods. NPA and its recovery mechanisms. Various management and financial concepts studied already -
observed how they are being done in reality.
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Thank You !!