profile of the respondent banks -...

CHAPTER -4 99

PROFILE OF THE RESPONDENT BANKS

4.1 INTRODUCTION

The study was done in Public Sector Banks operating in Mangalore city. Mangalore is the

district head quarter for Dakshina Kannada District. Mangalore is well connected to other parts

of the country by 2 national highways NH48 & NH17, district roads, Railways, Airways and

waterways. High literacy rate, good number of educational institutions, enterprising nature of

people, availability of natural resources, good communication network, banking facilities, well

connected roads within the region and other parts, konkan railway linking Mangalore with

important trade centers, airport situated at a distance of 19 km from Mangalore at Bajpe, seaport

at Panambur, tourist spots including beaches and temples, availability of medical facilities are

the strategic advantages of Mangalore. Mangalore is well served by good network of roads. All

towns of the district are well connected to Mangalore city. It has well leading educational

institutions, in all branches of learning, professional, training and research. There are large,

medium and small scale industries in and around Mangalore. The city has high branch bank

network. In D.K district Mangalore city has maximum number of Bank branches. So, the study

was done in Mangalore city. For the purpose of study ten Public Sector Banks which are

operating in Mangalore are selected.

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4.2 SELECTION OF THE BANKS

In the present research study, the selection of the Banks is based on the following criteria:

Banks should be practicing TQM for the last five years

Banks should obtain ISO 9000 certification.

Based on the above said criteria, the following ten Banks were selected randomly for the study:

1. Canara Bank

2. Corporation Bank

3. Bank of India

4. Punjab National Bank

5. Union Bank of India

6. Bank of Baroda

7. Indian Overseas Bank

8. Central Bank of India

9. Oriental Bank of Commerce

10. Indian Bank

4.3 ABOUT THE BANKS

4.3.1 CANARA BANK

Canara Bank which is widely known for its customer centricity was founded by Shri.

Ammembal Subbarao Pai a great Visionary and Philanthropist in July 1906, at a small port in

Mangalore, Karnataka. The Bank has undergone various phases in its growth path over hundred

years of its existence. The growth of Canara Bank was phenomenal, especially after

nationalization in the year 1969. Today Canara Bank occupies a premier position in the largest

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nationalized Banks in India in terms of aggregate business volumes for 2006-07.Canara

Bank has several firsts to its credit. They are-

Launching of Inter-City ATM Networks, 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, First Bank in India to

issue credit card for farmers, First Bank in India to provide Agricultural Consultancy Services.

The Bank has further expanded its domestic presence, with 3002 branches. In view of the

centrality of customer convenience, the Bank provides a wide array of alternative delivery

channels that include over 2000 ATMs- covering 715 centers, 1591 branches providing Internet

and Mobile Banking (IMB) services and 2084 branches offering 'Anywhere Banking' services.

Canara Bank has made a distinctive mark in various corporate social responsibilities,

namely, serving national priorities, promoting rural development, enhancing rural self-

employment through several training institutes, spearheading financial inclusion objective etc.

Promoting an inclusive growth strategy, which forms the basic plank of national policy agenda

today, is in fact deeply rooted in the Bank's founding principles. The insightful words of founder

of Canara bank continue to resonate even today in serving the society with 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. The Bank is based on justifiable belief of “Global Bank with

Best Practices". This justifiable belief is founded on strong fundamentals, customer centricity,

enlightened leadership and a family like work culture.

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Vision & Mission: To emerge as a „Best Practices Bank‟ by pursuing global benchmarks

in profitability, operational efficiency, asset quality, risk management and expanding the global

reach. 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.

Founding Principles

To remove Superstition and ignorance.

To spread education among all to sub-serve the first principle.

To inculcate the habit of thrift and savings.

To transform the financial institution not only as the financial heart of the community but

the social heart as well.

To assist the needy.

To work with sense of service and dedication.

To develop a concern for fellow human being and sensitivity to the surroundings with a

view to make changes/remove hardships and sufferings.

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. In 1995-96 became the first bank to be conferred with

ISO 9002 certification for one of its branches in Bangalore. In 2005-06 entered 100 years in

banking service. Canara Bank is also one of the leading Merchant Bankers in India, offering

specialized services to Bank. Canara Bank is SEBI registered Category I Merchant Banker /

Underwriter to carry on Issue Management (Public / Rights / Private Placement Issues),

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Underwriting, Consultancy and corporate advisory services etc. It also holds SEBI registration

Certificate to act as "Bankers to an Issue" with network of exclusive Capital Market Service

Branches to handle “capital market” related assignments.

Extended services of the Bank covers following areas: Merchant Banking, Commercial

Banking, Investments, and Bankers to Issue - Escrow Bankers, Underwriting, and Loan

Syndication. Canara Bank has been in the forefront in extending various need based ancillary

services to customers. One such specialized service is the Executor, Trustee, Taxation and

Attorney ship services that the Bank has been offering for more than three decades now. There

are 30 branches in Mangalore region.

TABLE 4.3.1 PROFILE OF CANARA BANK FOR THE YEARS

2008-09 and 2009-10

Higher provisioning, including floating provisions and provision for NPA‟s and a

considerable dip in trading profits have brought down the net profits of Canara Bank during the

fourth quarter of 2009-10 by 30%. Net profit for the period stood at Rs 503 crores as against Rs

719 crores recorded during the corresponding quarter of last year. Deposits increased at 25.5%

Particulars 2008-09 2009-10 Growth (%)

Net profit (in crores) 719 503 -30.0

Net interest income(in crores) 1,305 1,598 22.4

Other Income(in crores) 846 710 -16.07

Net NPA (%) 1.09 1.06 -2.75

Deposits (in crores) 186893 234651 25.5

Advances (in crores) 138219 169335 22.5

CAR (%) 14.10 13.43 -4.75

Share of CASA deposits (%) 30.96 29.85 -3.58

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and advances at 22.5%.Net interest income increased to 22.4% and there is decrease in other

income at 16.07%.In 2010 the Net NPA decreased to 2.75%. Capital Adequacy Ratio decreased

to 4.75%.The share of Current and Savings bank deposits decreased to 3.58%.

4.3.2 CORPORATION BANK

Corporation Bank is an Indian Bank based in Mangalore, Karnataka. Corporation Bank

started about 102 years ago in 1906 at a town named Udupi in Karnataka with an investment of

just Rs. 5000. Corporation Bank is all set to cross Rs. One Lakh Crores mark in business and

even far more, with over 2000 service outlets across the nation, served by committed and

dedicated 12,000 plus Corp bankers. Corporation Bank was established with the initial name

„The Canara Banking Corporation (Udupi) Ltd‟. Nationalized in 1980, Corporation Bank was the

forerunner when it came to evolving and adapting to the financial sector reforms. In 1997, it

became the Second Public Sector Bank in the country to enter capital market, the IPO of which

was over- subscribed by 13 times. the Bank has many “ firsts " to its credit - Cash Management

Services, Gold Banking, m-Commerce, Online approvals for Educational loans, 100% CBS

Compliance and more recently, its pioneering efforts to take the technology to the rural masses in

remotest villages through low-cost branchless banking - Business Correspondent model.

Corporate Vision

“To emerge as the most preferred Bank with global standards in financials, efficiency,

technology, products and services”

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Corporate Mission

[

To become a provider of world class financial services and to meet customer expectations

through innovation and technological initiatives.

To emerge as role model distinct culture identifies ethical values and good corporate

governance and to enable shareholders wealth by sustained profitable and financially

sound growth with prudent risk management systems.

To fulfill national and social obligations as a responsible corporate citizen and to create

an environment intellectually satisfying and professionally rewarding to the employees.

The Bank's logo has various components, namely Kamadhenu (denoting wish-

fulfillment), Kalpatharu (eternity), Balance (justice for all), Wheel (industrial progress) and

Wheat Grains (agricultural prosperity) which stand for universal prosperity and as a wish-

fulfilling credo. The logo in its present form was incorporated in 1972 when the name of the

Bank was changed from Canara Banking Corporation (Udupi) Ltd. to Corporation Bank Ltd.

Corporation Bank has an array of awards and recognitions to its credit, including National

Award for Assistance to Exporters from the President of India for the year 1976-77, Shiromani

Award for Banking from Union Minister of Commerce in the year 1992, Best Bank Award for

Excellence in Banking Technology from Institute for Development and Research in Banking

Technology (IDRBT) in the year 2001, and Best Bank Award for Innovative Usage and

Application on INFINET (Indian Financial Network) from the same institution in the year 2002.

Products and services: Corporation Bank offers a wide range of banking products and services

to its customers, including Personal Banking Services, Internet Banking Services, Value Added

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Banking Services, Corporate Banking Services and Credit Card & Debit Card Services. The

bank allocates due attention towards its corporate and international business customers, bringing

some customized services such as Gold Card Scheme for Exporters. Also, the bank has

introduced some specialized services to cater to the specific needs of Micro and Small

Enterprises (MSE) customers, enabling them leverage its potential to their maximum benefit.

There are 23 branches in Mangalore region.

TABLE 4.3.2 PROFILE OF CORPORATION BANK FOR THE YEARS

2008-09 and 2009-10

Lower tax expenses helped Corporation Bank, report a 20% increase in Net profit, at Rs 312

crores in the quarter ended March 31, 2010 as against 260 crores in the corresponding period last

year. Deposits increased at 25.34% and advances at 30.28%.There are decrease in other income

at 44.62%. Net NPA increased to 6.89%. Capital Adequacy Ratio increased to 12.43% and share

of current and savings bank deposits increased to 2.51%.


Net profit ( crores) 260 312 20.0

Net interest income( crores) 428 640 49.5

Other Income ( crores) 493 273 -44.62

Net NPA (%) 0.29 0.31 6.89

Deposits( crores) 73,984 92,734 25.34

Advances( crores) 48,512 63,202 30.28

CAR (%) 13.67 15.37 12.43

Share of CASA deposits (%) 27.85 28.55 2.51

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4.3.3 BANK OF INDIA

Bank of India was founded on 7th September, 1906 by a group of eminent businessmen

from Mumbai. The Bank was under private ownership and control till July 1969 when it was

nationalized along with 13 other Banks. Beginning with one office in Mumbai, with a paid-up

capital of Rs.50 Lakh and 50 employees, the Bank has made a rapid growth over the years and

blossomed into a mighty institution with a strong national presence and sizable international

operations. In business volume, the Bank occupies a premier position among the nationalized

banks. The Bank has 3012 branches in India spread over all states/ union territories

including 141 specialized branches. These branches are controlled through 48 Zonal Offices.

There are 29 branches/ offices abroad. 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 nationalized banks to

establish a fully computerized 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 has obtained ISO certification for its branches in March 2005.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 was the first Indian Bank to open a branch outside the

country, at London, in 1946, and also the first to open a branch in Europe, Paris in 1974. The

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Bank has sizable presence abroad, with a network of 27 branches (including three representative

offices) at key banking and financial centers viz. London, New York, Paris, Tokyo, Hong-Kong,

and Singapore. The international business accounts for around 17.82% of Bank's total business.

Quality policy: Bank of India are committed to become the bank of choice by providing

superior, proactive, innovative, state of art. Banking services with an attitude of care and concern

for the customers and patrons.

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, and in so

doing, meets the requirements of our stakeholders.

Vision: To become the bank of choice for corporate, medium businesses and up markets retail

customers and to provide cost effective developmental banking for small business, mass market

and rural markets.

Bank of India has been pioneering in launching key initiatives in areas of products,

distribution, technology, international operations and risk management. Bank aims at

strengthening the customer relations, diversifying delivery channel, increasing international

capabilities and services and strengthening revenue streams from diversified sources. Bank has

also redefined banking services with hi-tech services.

Bank completes implementation of 100% core banking solution in all its 3023 branches.

Installation of teller cash dispenses is in progress at identified branches. It will reduce wait time,

enhance the productivity of tellers, and also help in accurate dispensing of cash. Bank customers

enjoy the convenience of secured anytime, anywhere, anyhow hassle free banking from the

comfort of their homes and offices with a mouse click. Features like statement of account view,

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enquiring status of cheques, request for a cheque book, transfer of funds including third party

transfer within the networked branches etc. Through star connect internet banking services,

online inter-bank fund transfer made easy and convenient without any charge.

Customers can register for auto pay or online payment of various utility services like

telephone bills, electricity bills, mobile bills insurance premium, credit card bills and

subscription payments to certain magazines, mutual fund applications and certain other agencies.

The benefits to the customers are no more late payments, no more queues, no more hassles of

writing and depositing of cheques. E- Payment of direct and indirect central excise, service tax

and custom duties online from the comforts of their office or home avoiding queues and last

minutes rushes. Banks customers are provided with a fast, easy, and transparent and hassle free

way to trade in shares. BOI offers its customers a faster and easier method of effecting payments

by direct debit to the customers account in case of utility payments, credit cards bills etc. ECS is

also a preferred method of credit in respect of dividend warrants, interest warrants, refund orders,

salary pensions etc. it also provide facilities like online booking of Indian airlines ticket, Indian

railway ticket, online application form, education loan, etc. There are 3 branches in Mangalore

region.

[

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TABLE 4.3.3 PROFILE OF BANK OF INDIA FOR THE YEARS

2008-09 and 2009-10


Net profit ( crores) 810 428 -47

Net interest income( crores) 1,433 1,552 8

Other Income ( crores) 785 723 -8

Net NPA (%) 0.44 1.31 197.72

Deposits( crores) ( March 31, 2010) 13.01 12.94 -0.53

Advances( crores) ( March 31, 2010) 1,89,708 2,29,762 21

CAR (%) 1,44,732 1,71,317 18


Higher provisioning for non-performing assets saw Bank of India‟s net profit decline 47% to

Rs 428 crores during the quarter ended March 31, 2010, against Rs 810 crores in the

corresponding period of the previous year. Lower profit was on account of provisioning for gross

NPA‟s. Net interest income increased at 8%, other income decreased at 8%.Deposits decreased

at 0.53% and advances increased at 21%. Share of Current Account and Savings Bank deposits

3.2% and Capital Adequacy Ratio increased at 18%.

4.3.4 PUNJAB NATIONAL BANK

Punjab National Bank established in 1895 at Lahore (undivided India), is the first bank

to have been started independently with Indian capital. The bank was nationalized in July 1969

along with 13 other banks. Punjab National Bank, with its corporate office at New Delhi and 18

zonal offices which in turn supervise 65 regional offices under which the branches function,

offers a wide variety of banking services which include corporate and personal banking,

industrial finance, agricultural finance, financing of trade and international banking. Among the

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clients of the Bank are Indian conglomerates, medium and small industrial units, exporters, non-

resident Indians and multinational companies. Considering the importance of small scale

industries (SSI), the bank has established 16 specialized branches to finance exclusively such

industries. With its state-of-the-art dealing rooms and well-trained dealers, the bank offers

efficient forex dealing operations in India. Around 365 offices of the bank have been awarded

the prestigious ISO 9002 certification. The large presence and vast resource base has helped the

Bank to build strong links with trade and industry. Punjab national bank is serving over 3.5

crores customers through 4525 offices including 432 extensions counters-largest amongst

nationalized banks. PNB is also ranked 248th amongst the top 1000 banks in the world according

to the banker London. At the same time, the bank has been conscious of its social responsibilities

by financing agriculture and allied activities and small scale industries (SSI). Considering the

importance of small scale industries bank has established 31 specialized branches to finance

exclusively such industries.

Strong correspondent banking relationship which Punjab National Bank maintains with

over 200 leading international banks all over the world enhances its capabilities to handle

transactions world-wide. Besides, bank has Rupee Drawing Arrangements with 15 exchange

companies in the Gulf and one in Singapore. Bank is a member of the SWIFT and over 150

branches of the bank are connected through its computer-based terminal at Mumbai. With its

state-of-art dealing rooms and well-trained dealers, the bank offers efficient forex dealing

operations in India. PNB also offers Internet Banking services in the country for Corporate as

well as individuals. Internet Banking services are available through all Branches of the Bank

networked under CBS. Providing 24 hours, 365 days banking right from the PC of the user,

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Internet Banking offers world class banking facilities like anytime, anywhere access to account,

complete details of transactions, and statement of account, online information of deposits, loans

overdraft account etc.

Keeping in tune with changing times and to provide its customers more efficient and

speedy service, the Bank has taken major initiative in the field of computerization. All the

Branches of the Bank have been computerized. The Bank has also launched aggressively the

concept of "Any Time, Any Where Banking" through the introduction of Centralized Banking

Solution (CBS) and over 2409 offices have already been brought under its ambit.

Another step taken by PNB in meeting the changing aspirations of its clientele is the launch of

its Debit card, which is also an ATM card. The PNB also offers locker facilities, senior citizens

schemes, PPF schemes and various E-services.

Vision & mission: To evolve and position the bank as a world class progressive, cost effective

and customer friendly institution providing comprehensive financial and related services.

Integrating frontiers of technology and serving various segments of society especially the weaker

sections: committed to excellence in serving the public and also excelling incorporate values.

To provide excellent professional services and improve its position as a leader in the field of

financial and related services, build and maintain a tam of motivated and committed workforce

with high work ethos, use latest technology aimed at customer satisfaction and act as an effective

catalyst for socio economic development.

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TABLE 4.3.4 PROFILE OF PUNJAB NATIONAL BANK FOR THE YEARS 2008-09 and

2009-10




Other Income ( crores) 931.37 853.15 -8.3

Net NPA (%) 0.17 0.53 211.76

Deposits( crores) 14.03 14.16 0.93

Advances( crores) 209760 249330 18.86

CAR (%) 154703 186601 20.6


Aided by a sharp drop in cost of deposits, Punjab National Bank (PNB) has reported a

31.1% increase in net profit for the quarter ended March 31, 2010 at Rs 1,135 crores (Rs 866

crores). This strong bottom-line growth during the fourth quarter can be attributed to both lower

cost of deposits and reasonably efficient management of yield on advances despite reduction in

prime lending rates. Deposits and advances increased to 0.93% and 18.86%. The Capital

Adequacy Ratio and Share of Current Account and Savings Bank Account deposits increased

20.6% and 5.20%.

4.3.5 UNION BANK OF INDIA

[

[[[ [ Union Bank of India was inaugurated by the Father of the Nation, Mahatma Gandhi, on Nov

11, 1919. Started as a limited company in Mumbai; it was one of the few Financial Commercial

banks in India. Until 1947, UBI had only 4 branches - 3 in Mumbai and 1 in Saurashtra, all

concentrated in key trade centers. Catering to all the sectors of the society, be it agriculture,

industry, trade and commerce, services or infrastructure, the bank has also played a major role in

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rendering services to the financial needs of every section. Apart from this, the bank also

extended financial support to educational, housing and trade sector. Union Bank of India is

firmly committed to consolidating and maintaining its identity as a leading, innovative

commercial Bank, with a proactive approach to the changing needs of the society. This has

resulted in a wide gamut of products and services, made available to its valuable clientele in

catering to the smallest of their needs. Today, with its efficient, value-added services, sustained

growth, consistent profitability and development of new technologies, Union Bank has ensured

complete customer delight, living up to its image of, “GOOD PEOPLE TO BANK WITH”.

Anticipative banking- the ability to gauge the customer's needs well ahead of real-time - forms

the vital ingredient in value-based services to effectively reduce the gap between expectations

and deliverables. Union Bank of India undertook the task of establishment of village knowledge

centers and self-employment training centers.

Tech-Savvy: With the age of global banking, Union Bank of India also changed its style,

boasting of urbanized and computerized core banking systems. A front runner among public

sector banks in modern-day banking, it has all the facilities that a modern bank should have -

internet banking and centrally computerized branches. UBI was one of the pioneer public sector

banks, which launched Core Banking Solution in 2002. As of September 2005, more than 670

branches/extension counters of Bank are networked under Core Banking Solution. The Bank has

launched multiple Electronic Delivery Channels and has installed nearly 423 networked ATM; s

Vision statement: To become the bank of first choice in our chosen areas by building beneficial

and lasting relationship with customers through a process of continuous improvement

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Corporate mission

A logical extension of the Vision Statement is the Mission of the Bank, which is to gain

market recognition in the chosen areas.

To build a sizeable market shares in each of the chosen areas of business through

effective strategies in terms of pricing, product packaging and promoting the product in

the market.

To facilitate a process of restructuring of branches to support a greater efficiency in the

retail banking field.

To sustain the mission objective through harnessing technology driven banking and

delivery channels.

To promote confidence and commitment among the staff members, to address the

expectations of the customers efficiently and handle technology banking with ease.

Union Bank of India got ISO 9001-2000 certification for all its seven staff-training

centers across India by November 2003. In fact, plans are under way to certify an additional 150

of the bank's branches by the end of this fiscal. The bank had received the ISO 9001-2000

certification for 64 branches and three extension counters across the country. Union Bank of

India has a total branch network of 2,020. Bank officials say they had some internal criteria for

the selection of branches to be certified. The certification will enable the bank to maintain its

quality management systems in place in terms of timely and consistent delivery of services to its

customers. The delegated powers have been enhanced. The decentralized power structure has

accelerated decision making process and thereby Bank quickly responds to changing needs of the

customers and has also been able to adjust with the changing environment. Bank has five

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General Manager Offices at Ahmadabad, Lucknow, Delhi, Mumbai, Calcutta and Chennai which

function as an extended arm of corporate office. It also has two Zonal Offices at Bhopal and

Pune. Tier 3 comprises of 43 Regional Offices at various geographical center of the country.

TABLE 4.3.5 PROFILE OF UNION BANK OF INDIA FOR THE YEARS

2008-09 and 2009-10




Other Income ( crores) 493 560 13.5

Net NPA (%) 0.34 0.81 138.23

Deposits( crores) 13.27 12.15 -8.44

Advances( crores) 138416 169670 18.4

CAR (%) 92276 118272 28.17


Union Bank of India reported a 31.1% increase in net profit at Rs 594 crores in the fourth

quarter ended march 31, 2010 as against Rs 466 crores in the corresponding period last year. The

net interest income and other income increased to 8.3% and 13.5%.Deposits decreased to 8.44%

and advances increased to 18.4%.The share of Current Account and Savings Bank Account

deposits increased to 28.17% and 29.4%.

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4.3.6 BANK OF BARODA

Bank of Baroda (BOB) was founded by Maharaja Sayajirao Gaekwad of Baroda on July

20th 1908, under the companies Act of 1897, with a paid up capital of Rs 10 lakhs. The Bank of

Baroda started by this legendary Maharaja has now translated in to a strong, trustworthy

financial body. The founder Maharaja Sayajirao Gaekwad, with his insight in to the future saw

“a bank of this nature will prove a beneficial agency for lending, transmission, and deposit of

money and will be a powerful factor in the development of art, industries and commerce of the

state and adjoining territories. On 19th July 1969 this bank was nationalized by the Govt of India

along with 13 other commercial banks.

Since then bank has completed an eventful and successful journey of over 100 years. Bank

of Baroda has wisely orchestrated growth, involving corporate wisdom, social pride, and the

vision of helping others to grow, and growing itself in turn. Today Bank of Baroda has a network

of 3102 branches including 72 overseas branches in countries like Australia, Bahrain, Belgium,

china, Ghana, Kenya, Malaysia, U.K, U.S.A, Singapore, and Thailand etc. BOB provides NRI

banking services through these overseas branches which add to the fame of BOB and India. In

mid eighties, the Bank of Baroda diversified in to areas of Merchant banking, housing finance,

credit cards and mutual funds. Bank of Baroda took the lead in shifting from manual operating

systems to a computerized work environment. It gives high priority to quality services, with

excellent customer service and a well managed organization for each individual branch. In its

quest for quality Bank of Baroda successful in securing ISO 9001:2000 certifications. Bank of

Baroda adopted total branch mechanization system that are functional in around 70% Bank of

Baroda branches and account to more than 90% of the total bank‟s business.

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The BOB branch network was further extended to reach out to more people through the ATMs,

phone banking, and BOB online banking. It provided anytime, anywhere banking solutions. Use

of digital certificates, secure networking and authentication through smart card, make online

banking BOB extremely convenient and secure.

Vision: A bank will prove a beneficial agency for lending, transmission, and deposit of money

and will be a powerful factor in the development of art, industries and commerce of the state and

adjoining territories.

Mission: To be a top ranking national banking international standard committed to augmenting

stakeholder value through concern, care and competence.

Supporting corporate growth: As corporations grow they feel the need to expand and invest in

new infrastructure. External finance is one of the most important sources for funding expansion

plans. with services ranging from working capital finance, short term corporate loans, project

finance to cash management and merchant banking, BOB corporate banking offers various

options that help fund and enable corporations in their investment and expansion plans. These

products also offer merchant banking and cash management solutions. Global presence, highly

networked systems and local market penetration allows the customers to reap financial benefits

to the maximum.

The bank offers a wide array of customized and specialized services to meet the diverse

needs of its customers and these services have been categorized in to personal banking, business

banking, corporate banking, international banking, treasury banking and rural banking services.

The bank orchestrated its business strategies around the centrality of the customer. It diversified

in to areas of merchant banking, housing finance, credit cards and mutual funds. The new IT

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strategy, in the process of implementation will see the deployment of core banking system, multi

service transaction; switch payment gateways all geared to deliver convenience banking. BOB

offers various products and services that meet the specific requirements of small and medium

business enterprises and help them to grow. Apart from the loans, deposits, credit and debit cards

BOB offer other services to make financial dealings easy and convenient such as remittances,

collection services, electronic clearing services etc. Through a wide network of its branches all

over the country it extends financial support and is meeting the needs of the customers. By

providing lockers it gives safety to the valuables of the customers. Bank provides 24 hours

ATMS and help to withdraw cash, check account balance and request for a new cheque book

even after banking hours. Baroda internet banking and Baroda mobile banking helps the

customers to operate account in any of its branches.

It has significant international presence with a network of 76 offices in 25 countries. “ The

round the clock around the globe” BOB is further in the process of identifying and opening more

overseas centers for increasing its global presence to serve its 36 million global customers in still

better way. Bank will emerge stronger, more resilient and positioned to become India's first bank

of truly global standards. There are around 5 Bank of Baroda branches in Mangalore.

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TABLE 4.3.6 PROFILE OF BANK OF BARODAFOR THE YEARS

2008-09 and 2009-10





Net NPA (%) 0.31 0.34 9.67


Advances( crores) 138416 169670 22.6

CAR (%) 92276 118272 28.17


BOB reported a 20% increase in net profit at Rs 906 crores in the fourth quarter ended

march 31, 2010 as against Rs 753 crores in the corresponding period last year. Deposits and

advances increased to 2.21% and 22.6% respectively. The Net Interest Income increased to 19%

and other income decreased to 10%.The Capital adequacy Ratio and Share of Current Account

and Savings Bank Account deposits increased to 28.17% and 67.31% respectively.

4.3.7 INDIAN OVERSEAS BANK

Indian Overseas Bank (IOB) was found by Shri. M.Ct.M Chidambaram Chettiar on Feb

10, 1937.He is a pioneer in many fields – banking, insurance, and industry. The main objectives

of establishing IOB banks are specializing in foreign exchange business and overseas banking. It

started with simultaneously 3 branches in Chennai, Rangoon and Penag. On the Independence

Day, IOB had expanded its branch strength to 38 branches within the country and 7 branches

abroad. Today, Indian Overseas Bank boasts of a vast domain in banking sector with over 1400

domestic branches and 6 overseas branches.

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IOB was the first bank to venture into consumer credit, as it introduced the popular Personal

Loan scheme. In 1964, the Bank started computerization in the areas of inter-branch

reconciliation and provident fund accounts. Indian Overseas Bank was one of the 14 major banks

which were nationalized in 1969. After nationalization, the Bank has opened its branches in rural

areas. In 1979, IOB opened a Foreign Currency Banking Unit in the free trade zone in Colombo.

The Bank's IT department has developed software, which is used by its 1200 branches to

provide online banking to customers. Indian Overseas Bank also has a network of about 500

ATMs throughout India. Its International VISA Debit Card is accepted at all ATMs belonging to

the Cash Tree and NFS networks. IOB also offers Internet Banking; it's one of the banks that the

Govt. of India has approved for online payment of taxes.

Before nationalization in 1969, the bank had ventured into consumer credit, had begun

computerization of their branch in 1964 and had established an independent department for

agricultural finance. In 1969, IOB had 195 branches in India. In 1977, Indian Overseas Bank

opened a branch in Seoul followed by a foreign currency-banking unit in Colombo in 1979. In

1997, the bank launched its official website and introduced online Bill Payment Services for

MTNL Bills to its New Delhi branch Customers in 1999.The IOB presence is marked in key

trade centers of the world like Singapore, Seoul, Hong Kong, Bangkok and Germany. Its India

presence is well networked branch system spanning the country with multiple branches in major

cities like Bangalore, Chennai, Mumbai, Noida, Hyderabad, New Delhi, Coimbatore, Pune,

Faridabad, Gurgaon and Kolkata.

Indian Overseas Bank Services: Indian Overseas Bank currently provides specialized banking

services to its retail customers that include Any Branch Banking (ABB), ATM Banking, IOB

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STARS (Indian Overseas Bank - Speedy Transfer and Realization Service) and the most popular

and latest one is the 8% saving (Taxable) Bond Scheme.

The products of Indian Overseas Bank are mentioned below:

Deposits: Saving Bank Deposits, No Frills SB Accounts, Current Account, Fixed Deposit,

Reinvestment Deposit, Recurring Deposit Account, Annuity Deposit Plan, Multiple Investment

Scheme, Cumulative Benefit Deposit, and Multiple Deposit Account

Loans: Personal Loan, Car Loan, Commercial Vehicle Loan, Corporate Loans, Housing Loan,

Home Improvement Loan, Educational Loan, NRI Home Loans, Agricultural Loans, Finance for

Small, Medium and Large Enterprises

NRI services: NRE Accounts, NRO Savings Account, RFC Accounts, FCNR Account,

Remittance Services.

Other services and products: VISA International Credit Cards, VISA Debit Card, IOB Fine

Gold, Real Time Gross Settlement (RGTS),Forex Collection Services, Agriculture and Business

Consultancy Service, Investment options like Mutual Funds and Shares. Besides these products

and services, any information on the current interest rates, news on shares and Forex rates,

address and phone number of nearest Indian Overseas Bank Branch or ATM is available on the

official website of Indian Overseas Bank. The site also provides recruitment news and the jobs

vacancy in IOB. Indian Overseas Bank provides Internet Banking Services to its customers.

Several customer care helpdesks are also opened in the IOB branches. So it provides a wide

range of consumer and commercial banking services. In Mangalore, Indian Overseas Bank have

5 branches.

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TABLE 4.3.7 PROFILE OF INDIAN OVERSEAS BANK FOR THE YEARS 2008-09 and

2009-10

IOB has reported a 60% decline in net profit to Rs 127 crores for the fourth quarter compared

with Rs 322 crores for the same period in the previous year. This is due to fall in the treasury

income, higher provisioning and lower credit growth. There is decline in Capital Adequacy Ratio

and Share of Current Account and Savings Bank Account deposits decreased to 6.15% and

7.06% respectively. The lower growth in advances and a hit in treasury income during the fourth

quarter of 2009-10 had impacted IOB‟s profitability.

4.3.8 CENTRAL BANK OF INDIA

Central Bank of India (CBI) is one of the oldest commercial bank of India and

reportedly is the first truly Indian bank which was totally owned and established by Indian

without any foreign help. Sir Sorabji Pockhanawala was the founder of the bank, who had

always dreamt of establishing a thoroughly Indian Bank, who was so happy and excited about

the project that he reportedly termed the CBI as “Property of nation and the country asset”. He

also added that CBI lives on people‟s faith and regards itself as the peoples own bank. In the year


Net profit ( crores) 322 127 -60.5



Net NPA (%) 1.3 2.5 92.30


Advances( crores) 100116 110795 10.7

CAR (%) 80782 75810 -6.15


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1969 the bank was nationalized by the Govt of India. CBI claims to be the first bank to be

conferred with the national award for excellence in macro and small enterprises lending for the

year 2007-08.The bank entered a partnership with Kotak Mahendra Assets Management

Company in December 2008, under which all the Kotak mutual fund products will be made

available in CBI branches.

Products and services: CBI offers a host of banking services to its customers including regular

banking services such as deposit and loans, international banking services and other services

including central card, electronic cards, debit cards, No frills savings deposit account under the

name cent Bachat khata, and finance options for domestic and international tours under the name

cent safar. CBI has a strong presence in the country with over 3000 branches and more than 250

extension counters nationwide as of April 2009. The head quarters of the bank located in

Mumbai, the financial capital along with 16 other zonal offices established in cities, namely

Agra, Ahmadabad, Bhopal, Chandigarh, Chennai, Guwahati, Hyderabad, Kolkatta, Luchnow,

Nagpur, New Delhi, Patna and Pune.

A number of Innovative and unique banking activities have been launched by CBI.

1921 --Introduction to the Home Savings Safe Deposit Scheme to build saving/thrift habits in all sections of the

society

1924--An Exclusive Ladies Department to cater to the Bank's women clientele.

1927--Safe Deposit Locker facility and Rupee Travelers' Cheques

1929--Setting up of the Executor and Trustee Department

1932-- Deposit Insurance Benefit Scheme.

1976-- The Merchant Banking Cell was established.

1980---Central card, the credit card of the Bank was introduced.

1986---'Platinum Jubilee Money Back Deposit Scheme' was launched.

125

Further in line with the guidelines from Reserve Bank of India and also the Government of India,

Central Bank has been playing an increasingly active role in promoting the key thrust areas of

agriculture, small scale industries as also medium and large industries. The Bank also introduced

a number of Self Employment Schemes to promote employment among the educated youth.

Among the Public Sector Banks, Central Bank of India can be truly described as an All India

Bank, due to distribution of its large network in 27 out of 28 States as also in 4 out of 7 Union

Territories in India. In view of its large network of branches as also number of savings and other

innovative services offered, the total customer base of the Bank stood at over 25 million account

holders & which is one of the largest in the banking industry. Customers' confidence in Central

Bank of India's wide ranging services can very well be judged from the list of major corporate

clients such as ICICI, IDBI, UTI, LIC, HDFC as also almost all major corporate houses in the

country. 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.

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 (Rudest) at Hoshangabad. This is providing intensive entrepreneurship training to the

rural youth, to enable them to take to vocational activities. The Bank has already set Rudest at

Kota and Muzaffarpur.A Financial Literacy and Credit Counseling Centre - Centsahyog was

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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.

TABLE 4.3.8 PROFILE OF CENTRAL BANK OF INDIA FOR THE YEARS 2008-09 and

2009-10

The banks performance in the fourth quarter was boosted due to increased focus on recovery

from written off accounts and commission and exchange income. The net profit increased to 171

crores in the fourth quarter ended March 31, 2010 as compared to 62.50 crores in the

corresponding period last year. The Net Interest Income and other income increased to 53% and

13%.The deposits decreased to 6.7% and advances increased to 23.5%. The Capital Adequacy

Ratio increased to 23.49% and Share of Current Account and Savings Bank Account deposits

decreased to 2.9%.


Net profit ( crores) 62.5 171 173.0


Other Income ( crores) 503 569 13.0

Net NPA (%) 1.24 0.69 -44.35


Advances( crores) 1,31,272 1,62,107 23.5

CAR (%) 86,740 1,07,118 23.49


127

4.3.9 ORIENTAL BANK OF COMMERCE

Established on 19th Feb' 1943 in Lahore, Oriental Bank of Commerce (OBC) is one of the

public sector banks in India. Its modest beginning is creditable to its founder Late Rai Bahadur

Lala Sohan Lal, the first Chairman of the OBC. Within four years of coming into existence, the

country partitioned, the Bank shifted its Registered Office from Lahore to Amritsar. The Oriental

Bank of Commerce was nationalized on 15th April 1980, and paved its way to count amongst the

strongest Bank in India.

OBC has a network of 530 branches and 505 ATM's spread throughout India, out of which

490 branches offer centralized banking solutions. With High Capital Adequacy Ratio, Oriental

Bank of Commerce is known be a consistent profit-making bank. It offers various services and

products, like current/savings account, general loans, educational loans, agricultural loans, etc,

for the benefit of customers. For its effective services, the National Institute of Bank

Management (NIBM) rated OBC Bank as "Customer friendly Bank”.

OBC India Grameen Project: OBC‟s Grameen Project aims to reduce poverty & to identify the

reasons which are responsible for the failure or success. OBC is implementing a Grameen

Project in Dehradun District (UP) and Hanumangarh District (Rajasthan). This Scheme has a

unique feature of disbursing small loans, ranging from Rs. 75 onwards. The OBC has various

Agriculture Loan Schemes for farmers, such as, Composite Credit Scheme for Agricultural

Leading, Overdraft Facility to Farmers, Advance against Warehouse Receipts to Farmers &

Purchase of Land for Agriculture Purposes, Agriculture clinic and agriculture business centers.

Comprehensive Village Development Program: On 13 April 1997 at the occasion of Baisakhi,

OBC launched another unique scheme, 'The Comprehensive Village Development Program in

128

three villages of Punjab. After the success of this scheme in these villages, the Bank extended the

program to more villages. Today, it covers 10 villages in Punjab, 4 in Haryana and 1 in

Rajasthan. This programme focuses on providing a comprehensive and integrated package,

which offers finance to the villages.

Special services for women: Oriental Bank of Commerce has also implemented 14 point action

plan for strengthening the credit delivery to women. Under this scheme bank provide various

loans to women, such as, Oriented Mahila Vikas Yojana, Scheme for Professional & self

Employed Women, Scheme for Beauty Parlor/ Saloons/Tailoring, Scheme for Financing

Working Women, etc.

Vision of the bank : To be a sound all India, customer centric, efficient retail bank with

contemporary size, technology and human capital; endeavoring to enrich lives across all sections

of society; and committed to upholding the highest standards of corporate governance.

Mission of the bank:

1. To provide the finest banking services by upgrading human capital.

2. Infusing advanced technology, thereby achieving total customer satisfaction; and being

reckoned as the “Best Bank” in the Industry on all efficiency parameters.

3. To enhance shareholders‟ wealth by ensuring sound growth of business and make valuable

contributions to national economic growth.

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TABLE 4.3.9 PROFILE OF ORIENTAL BANK OF COMMERCE FOR THE YEARS

2008-09 and 2009-10



Net interest income( crores) 1,071 1200 12.0

Other Income ( crores) 341.27 265.41 -22.2

Net NPA (%) 0.34 0.81 138.24

Deposits (crores) 0.65 0.87 33.85

Advances( crores) 98,369 1,20,258 18.2

CAR (%) 69,065 84,184 21.89


Aided by better core operations and decline in cost of deposits OBC has reported a 75.3%

increase in net profit for the fourth quarter ended March 31, 2010 at Rs 317 crores. The net profit

jump in the fourth quarter can be attributed to better core operations. The Net Interest Income

increased to 12% and other income decreased to 22.2%.There is increase of Net NPA is to

138.24%.The deposits increased to 33.85% and advances increased to 18.2%.The Capital

Adequacy Ratio increased to 21.89% and Share of Current Account and Savings Account

Deposits increased to 5.18%

4.3.10 INDIAN BANK

Indian Bank was established on August 15, 1907 as part of the Swadeshi movement. In

1969, the Bank was nationalized along with 13 other banks. Today, Indian Bank has a network

of 1642 branches spread all over India. Indian Bank has an impressive international presence.

The Bank has overseas branches in Singapore and Colombo including a Foreign Currency

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Banking Unit at Colombo. Indian Bank has 240 overseas correspondent banks in 70 countries.

Indian Bank is engaged in diversified banking activities and has 3 subsidiary companies to look

after them. Indian Bank is a front runner in specialized banking. The bank has 90 Forex

Authorized branches inclusive of one Specialized Overseas Branches at Chennai exclusively for

handling forex transactions arising out of Export, Import, Remittances and Non Resident Indian

business. The bank also has five specialized NRI branches exclusively for servicing Non-

Resident Indians and one small scale Industries branch extending finance exclusively to SSI

units. Indian Bank is a pioneer in rural development. It has launched several innovative loan

products like Artisan Card, Kisan Card, Kisan Bike Scheme, and Yuva Kisan Vidya Nidhi

Yojana to meet diverse credit needs of farmers. It is pioneer in introducing Self Help Groups and

financial inclusion project in the country. Established 7 specialized exclusive Microfinance

branches called "Microstate" across the country to cater the needs of urban poor through Self

Help Group. It also provides provision of technical assistance and projects reports in agriculture

to entrepreneurs through agricultural consultancy and technical services.

Pioneer in introducing latest technology in Banking: 100% Core banking solution branches,

100% business computerization, 168 centers throughout the country covered under anywhere

banking, Internet and tele banking services to all core banking customer‟s-payment facility for

corporate customers, Cash management services, Depository services.

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TABLE 4.3.10 PROFILE OF INDIAN BANK FOR THE YEARS

2008-09 and2009-10

Particulars 2008-09 2009-10 Growth

(%)

Net profit ( crores) 394.07 409.95 75.3


Other Income ( crores) 292.11 292.85 0.3

Net NPA (%) 0.18 0.23 27.7


Advances( crores) 100116 110795 10.7

CAR (%) 75,810 80,782 6.5


The net profit of Indian Bank increased to 409.95 as against 394.07 crores in the

corresponding period last year. There is 75.3% of increase of net profit. The net interest income

increased to 16.5% and other income increased to 0.3%.There is increase of net NPA is

27.7%.Deposits decreased to 9.08% and advances increased to 10.7%.The Capital Adequacy

Ratio increased to 6.5% and share of current and Savings Bank account increased to 1.2%.

profile of the respondent banks -...

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