A study on General Banking System At Bank of India For the partially fulfillment of the Masters of business Administration (MBA)

Submitted to: submitted by: Bank Manager LEELADHAR NAGAR RAMPURA, kota sem.

MBA 3rd

CENTRAL UNIVERSITY OF RAJASTHAN

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BANDER SINDRI, KISHANGARH AJMER (RAJ.)

ACKNOWLEDGEMENT
Compiling a report is a rewarding task that requires both mental stamina and attention to detail. The varied nature of the matters dealt with has entitled references too many sources, starting from books to websites and to all of these we gladly acknowledge our independents for the ideas and information they have provided. First of all we want to give thanks to the Almighty. I got a lot of help from Internet. We also want to give thanks to those persons who provide us information, Specially Miss CHAVI and Miss DIVYA for providing me required data necessary for completing report. I appreciate the spontaneity and willingness of all the employees, management and staff of Bank of India who helped me by giving their valuable feed back so that I could complete my survey on effectiveness of training programmes as observed in this organization. I take this opportunity in my career to express my sincere gratitude and deftness to all those who made this project a success. I would like to mention that this sentiment will linger on throughout my life.

LEELADHAR NAGAR

Table of Contents
S.no. 1 2 3 4 5 7 8 9 10 11 Contents Executive Summary Industry Profile (Banking Sector) Company Profile Objectives, Scope and Purpose Research Methodology Findings Conclusion Recommendations Limitations Bibliography Page no. 7 8 -12 13 17 18 19

PREFACE
This project report is prepared during the vocational training undertaken at BANK Administration. Theory of any subject is important but without its practical knowledge it becomes useless particularly for the Management Administration, students. we As a student many of the Business in the have studied theories OF INDIA KOTA, on partial fulfillment of Business the degree in Master of

classroom, but only after taking up this project work we have experienced & understood these Management theories & practices in its fullest sense, which plays a very vital role in business field today. The knowledge of Management is incomplete without knowing the practical applications of the theories studied. This training provides golden opportunity for all students, especially when the Management student does not have perfect understanding of the working of a unit. Hence, this report is designed with the objective to gain practical knowledge.

EXECUTIVE SUMMARY
Traditionally, accepting deposits and providing credits have been the main function of commercial banks. These areas to be the mainstay of commercial banking even today. However .the manner in which these services are undertaken by modern commercial banks has undergone drastic changes during past 2 decades. In an endeavor to stay ahead among others, all the commercial banks have come out with large number of products both on Asset side , Liability side and also in IT field. BOI bank has also developed a rich products profile and a strong I.T. platform. Non-Bank Financial Institutions (NBFIs) play a significant role in meeting the diverse financial needs of various sectors of an economy and thus contribute to the economic development of the country as well as to the deepening of the countrys financial system.

Industry Profile
Banking Sector Banking in a traditional sense is the business of accepting deposits of money from public for the purpose of lending and investment. These deposits can have a distinct feature can be withdrawn by cheques, which no other financial institution can offer. In addition, banks also offer financial services, which include: Issuing demand draft & travelers cheque. Credit Cards, Debit Cards Collection of cheques, bill of exchange. Safe deposit lockers Custodian services. Investment and Insurance Services.
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 Other Para- Banking Products The business of banking is highly regulated since banks deal with money offered to them by the public and ensuring the safety of this public money is one of the prime responsibilities of any bank. That is why banks are expected to be prudent in their leading and investment activities. Every bank has a compliance department, which is responsible to ensure that all the services offered by the bank, and the processes followed are in compliance with the local regulations and the Banks corporate policy. The Indian banking market is growing at an astonishing rate, with Assets expected to reach US$1 trillion by 2010. An expanding economy, middle class, and technological innovations are all contributing to this growth. The countrys middle class accounts for over 320 million people. In correlation with the growth of the economy, rising income levels, increased standard of living, and affordability of banking products are promising factors for continued expansion. The Indian banking Industry is in the middle of

an IT revolution, focusing on the expansion of

retail and rural

banking. Players are becoming increasingly customer - centric in their approach, which has resulted in innovative methods of offering new banking products and services. Banks are now realizing the importance of being a big player and are beginning to focus their attention on mergers and acquisitions
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to take advantage of economies of scale and/or comply with Basel II regulation.

The major regulations and act govern the banking business are: Banking Regulation Act, 1949 Foreign Exchange Management Act,1999 Indian Contract Act Negotiable Instruments Act, 1881 Bank lend money either for productive purposes to individual, firms, Corporate etc. of for buying house property, cars and other consumer durables and for investment purposes to individuals and the others. However, banks do mot finance any speculative activity. Lending is risk taking. The depositor of banks is also assured of safety of their money by deploying some percentage of deposit in statutory reserves like SLR & CLR.

Banking Industry

Banking System
Banking system is an integral sub-system of the financial system. It represent an important channel of collecting small saving from the households and ending it to the corporate sector.

The Indian Banking system has the Reserve Bank of India (RBI) as the apex body for all matters relating to the banking system.

Classification of Banks 1. Non-Schedule Banks

These are banks, which are mot included in the second schedule of the Banking Regulations Act, 1965. It means they do mot satisfy the conditions laid down by that schedule. They are further classified as back: Central co-operative banks and primary credit societies Commercial Banks

2. Schedule Banks
Must have paid-up capital and reserve of mot less than Rs. 50,00,000 . The must satisfy the RBI than its affairs are mot conducted in a manner detrimental to the interests of its depositors. These are further classified as follow: State co-operative Banks Commercial Banks

Banks are further sub-divided as:-

A.
These

Indian Banks:
banks are companies registered in India under

companies act, 1956, their place of origin is in India. These are further classified into.

. State Bank of India and its Subsidiaries:

This group comprises of the State Bank of India (SBI) and its seven subsidiaries viz., State Bank of Patiala, State Bank of Hyderabad, State Bank of Travancore, State Bank of Bikaner & jaipur State Bank of Indore. Other Nationalized Banks: This group consists of private sector bank that were national. The Government of India Nationalized 14 private banks in 1969 and another 6 in the year 1980. Regional Rural Banks: The RBI established these in the year 1975 of Banking Commission. It was established to operate exclusively in rural areas to provide credit and other facilities to small and marginal farmers and small entrepreneurs. Old private Sector Banks:

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This group consists of Banks that were established by the privy states, community organization or by a group of professionals for the cause of economic betterment in their area of operations. Initially their branches slowly spread throughout the national as they grew. New Private Sector Banks: These banks were started as profit oriented companies after the RBI opened the banking sector to the private sector, these banks are monthly technology driven and betterment in their branches slowly spread throughout the nation as they grew.
B.

Foreign Banks:

Diagram-1

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Company profile

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 3101 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 (including three representative offices)
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abroad. The Bank came out with its maiden public issue in 1997 and follow on Qualified Institutions Placement in February 2008. . Total number of shareholders as on 30/09/2009 is2,15,790. 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'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 Bank has sizable presence abroad, with a network of 29 branches (including five representative offices) at key banking and financial centers viz. London, Newyork, Paris, Tokyo, Hong-Kong and Singapore. The international business accounts for around 17.82% of Bank's
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total business.

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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".

GOAL
Long term maximization of stakeholders' value in a socially responsible manner.

CORPORATE RESPONSIBILITY
Discharge their functions with proper accountability for actions and results and bind themselves to the highest ethical standards

BANK OF INDIAS SERVICES

BOIs service offerings include:
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LOAN SERVICES:
1) Personal loan 2) Agriculture & priority sector 3) SME 4) Commercial loans 5) Trade finance 6) NRI loans

ONLINE SERVICES:
1) Mobile banking 2) Internet 3) Pay bills 4) Book ticket 5) Tax payments 6) Star e-remit

ANCILLARY SERVICES:
1) Remittance 2) Star cash management services 3) Safe deposit vault 4) Safe custody services 5) Depository services 6) Gold 7) Insurance 8) Mutual fund

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OBJECTIVE, SCOPE, AND PURPOSE

Objective:
The objective of taking banking industry is that as a finance student it is very necessary to know all the activities and work of the banking sector. Banking sector plays an important role in todays financial condition of the nation.

Scope:
The scope of the study is to obtain all the information about the Retail financing Facilities provided by the bank.

Purpose:
The purpose of taking topic Retail financing loan for study is that because in todays scenario all the business activities are run by taking loan. Providing Finance facility is an important activity of the bank. purpose. For this all the information related to providing loan is collected for completing the

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FINDINGS
1) Practical application is totally different from theoretical

knowledge. What we learn through Books and when we face the situation in reality then there is a huge difference between them.
2) The most important think that I have learnt is corporate

culture in the Bank of India i.e. the work can be completed only with the help of the colleagues.
3) You should be aware from current affairs. Every person has

different kind of attitude dealing with all of them was a big challenge for me. 4) The customer behavior is also very important to know for satisfying the specified customer need.
5) You should work in a group. In Bank I worked as a team

member that was a nice experience for me. 6) In the banks we have to face different kind of people and the typical think is, understanding those people who cannot express themselves properly. Because so many customers are not educated well and unable to do the banking formalities.

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CONCLUSION
It was a great experience to get the summer internship from Bank of India. The bank of India is a public sector bank which deals in all the banking and non banking operations. The public sector banks are safer and secure than private banks. Bank of India provides so many facilities to the customers which includes STAR VIDYA CARD especially for students many more. The work is done in team basis and all the employees are trained in such a way so each and every employee can work at all the counters and able to do all the operations systematically.

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LIMITATIONS
Banking sector is very vast and the duration is not sufficient to cover all the aspects.
Lack of openness in the policies of the bank.

The work burden is very much for employees, so they could not give the proper attention towards us. Lack of guidance and proper training.

Bibliography

1. 2. 3. 4. 5.

Sandipani Official website of BOI. Annual Report , BOI En.Wikipedia.org/wiki/bank of India www.bankofindia.org.in
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6.

Economictimes.Indiatimes.com/news/banking/bank

of

India.
7.

Financial Management by I.M. Pandey

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