Management Information Systems

MIS in ICICI Bank

Ravindra Khandelwal 3275

INTRODUCTION
MANAGEMENT INFORMATION SYSTEM
Definition: A Management Information Systems (MIS) is An integrated user machine system For providing information To support operations, management, analysis and decision making functions in an Organization The system utilizes Computer hardware and software Manual procedures Models for analysis , planning , control and decision making A database

The development and management of information technology tools assists executives and the general workforce in performing any tasks related to the processing of information. MIS and business systems are especially useful in the collation of business data and the production of reports to be used as tools for decision making.

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ABOUT THE COMPANY:

ICICI Bank started as a wholly owned subsidiary of ICICI Limited, an Indian financial institution, in 1994. Four years later, when the company offered ICICI Bank's shares to the public, ICICI's shareholding was reduced to 46%. In the year 2000, ICICI Bank offered made an equity offering in the form of ADRs on the New York Stock Exchange (NYSE), thereby becoming the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE. In the next year, it acquired the Bank of Madura Limited in an all-stock amalgamation. Later in the year and the next fiscal year, the bank made secondary market sales to institutional investors.

With a change in the corporate structure and the budding competition in the Indian Banking industry, the management of both ICICI and ICICI Bank were of the opinion that a merger between the two entities would prove to be an essential step. It was in 2001 that the Boards of Directors of ICICI and ICICI Bank sanctioned the amalgamation of ICICI and two of its wholly-owned retail finance subsidiaries, ICICI Personal Financial Services Limited and ICICI Capital Services Limited, with ICICI Bank. In the following year, the merger was approved by its shareholders, the High Court of Gujarat at Ahmadabad as well as the High Court of Judicature at Mumbai and the Reserve Bank of India.

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INFORMATION SYSTEM IN ICICI BANK:

MIS creates an evolution in whole world in every business and so in banking system. Now in ICICI Bank with the help of MIS the daily transactions are recorded in branch computers and these branch computers are then connected to the main head office server so in this way they keep their daily process update on daily basis. As Time is money, and due to IS ICICI Bank make thousands of transactions per day. In fact, IS makes whole process much more quick, simple and reliable. Due to MIS employees can easily connect with other branches, customer service got improved, online banking emerged and lots of other benefits. ICICI Online is an innovative Online Banking service that you can tailor to suit your precise banking needs. It gives you convenient, round-the-clock banking services ranging from day-to-day account transfer transactions to real-time valuable financial information. Now you can manage your finances anytime, anywhere.

ORGANIZATION COMPUTING RESOURCES:

Software Resources:Following softwares are used for the functioning of our information system and organization;

Application Software:Following application softwares are used in our organization and functioning of our information system; Microsoft Office NOD32 Anti-Virus Adobe Reader

System Software:Following application softwares are used in our organization and functioning of our information system;
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Operating System (Windows XP and Linux) for PCs. Windows 2003 server for mainframes.

Hardware Resources:Following hardware resources are required for the functionality of IS and organization: Personal computers Canon Document Scanners HP Printers Networking cards Currency counter Coin counters HP Digital Scanners Dell Mainframes

Computing Type:In ICICI bank, they are using client/server network because it is accessible and the employees easily share the data and this network is cheaper than others and this is easily maintainable and manageable. All the data save in main server or HUB and employees can easily access it. This type of computing system provides an easy access and efficient flow of data, which increase the functionality of organization.

ORGANIZATION TRANSACTION PROCESSING SYSTEM:

Transaction Processing System:
A Transaction Processing System (TPS) is a type of information system. TPSs collect, store, modify, and retrieve the transactions of an organization. A transaction is an event that generates or modifies data that is eventually stored in an information system. From a technical perspective, a Transaction Processing System (or Transaction Processing Monitor) monitors transaction programs, a special kind of programs. The essence of a transaction program is that it manages data that must be left in a consistent state.

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TPS in ICICI bank:

Effective transaction processing system is working in ICICI bank that offer enterprise the means to rapidly process transactions to ensure the smooth flow of data and the progression of processes throughout the enterprise.

Payroll TPS
In ICICI Bank payroll TPS is designed to get information and record of the employ and then to calculate his/her annual earning. It gets information about the employee from the employees department and from general ledger and send it to payroll TPS from where it links that information with the previous record and prepare a report which is forwarded to management. Management takes notice the LN record of the employees efficiency to work and may declare added bonus or other incentive. This report is checked and approved by the branch manager after which check is issued to the employee. And when that check is cashed, the record is updated in the general ledger as well as the master payroll (HUB).

Employ ee Data

Payroll TPS

Management Reports

General Ledger

Check Passes by Manage r

Payroll Master File (HUB)

Check Issued to Employee

General Ledger

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Customer Identification:
In ICICI bank there is their own information management named software Virses is working which is connected to NADRA. So if any new client wants to open an account in the bank the system automatically send a request to NADRA to check and verify the customer ID number. Which helps the management to identify whether he/she is using his original ID card or not.

Input (ID #)

Virses

HUB

NADRA Management (customer identification)

Employees Record :
All employees are supposed to login when they enter the bank and logout on leaving, by tracing their thumb impressions on biometric device. This device is connected with the HUB which continuously makes record of their hours spent in the bank. Moreover, the bank has their own setup named LN which makes records of all the transactions made by an employee. This helps management to monitor the working efficiency of an employee.

Employe e Job Login

Biometric Device & LN HUB

Employe e Job Logout

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Real time Banking:

In many circumstances the primary factor is speed. For example, when a customer withdraws a sum of money from his or her account the transactions are processed and the account balance updated as soon as possible, allowing both the bank and customer to keep track of funds. The new transaction is send to LN. The LN enters the HUB where the specified file is accessed. The updates are made entered there and finally the update is done.
New Transaction s, Updates

LN

Update d

HUB

Online Complains:
ICICI bank allows the customer the option of online complains. The customer submits the online complain which is then processed by Customer Service TPS which is linked by management and after the problem identification it is send to the concerned department.

Customer Queries

Customer Service TPS

Identify Problem

Send to Concerne d Dept.

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Advices:
As the records of all the customers are stored in main server (HUB) of ICICI bank, so in case if someones account balance is getting near to zero the system automatically alert the management about that. Then manager take manual action and send him/her the advice (a letter, mail or phone call) to check the account balance.

Accou nt Alert

Managemen t

HUB

Advices Send to Customer

Account Opening
This TPS is designed for opening a new account in the bank. Input: Give bio data, NIC no., income, city name. Process: Information send to the virses. Output: new account opened in the bank.

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Virses

Applica nt

Identification

Customer Service TPS

New A/C Opene d

A/ C De

HUB

Online Activity
Purpose: Transfer funds with the organization. Input: Concerned Branch code, city name, account title, amount & the transaction. Process: The information will send to organization server (HUB).

Output: Transfer of fund to the concerned branch.

Custom er

Customer Service TPS

A/C Dept

HUB

Fund Trnsfr to Concerne d Branch

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ATM Card
Purpose: Easy with draw of cash. Input: Give bio data, income summary, company name, NIC. Process: NIC no. and bio data send to virses which directly linked to NADRA. If information is correct then it is forward to customer service centre.

Output: Issue of credit card.

Virses

Applica nt

Identification

Customer Service TPS

New A/C Opene d

A/ C De

HUB

ATM Issued

Car Financing
Purpose: Leasing a new car. Input: Account title, down payment amount.

Process: The information is send to the HUB and verify the account of customer and make the schedule for leasing for the given period of time.

Output: Customer can get a new car.

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HUB

Applica nt

Identification

Customer Service Managers

Issuenc e

A/C , Financ e Dept.

LIMITATIONS
The study conducted, imparted a fair knowledge about the integrated Information System of ICICI Bank. The limitations of the study include Security (Confidentiality) Since banks keep most of their operations confidential for security reasons, it was difficult to assemble detailed information from authoritative representatives. Every bank is known to exercise the highest degree of confidentiality when it comes to its information, systems, processes, procedures, people, accounts and clients. This accounts to the fact that a bank would refrain from chipping in their core activities/processes/procedures. Time Factor Every bank indulges in diverse activities and services which make use of various types of IS. Thus, in such a short span it was easier said than done to gather enough information pertaining to every aspect of the bank. The bank staff were pre-occupied with their schedules at most times and hence were unable to share more information about the IS of their company.

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Knowledge As management students our depth of knowledge was limited to a shorter range as exercised by the professional bank officials and trained back-end workforce. It was a challenge for us to understand and report the study conducted by us. Timings Since the bank timings did not comply with that of ours, one has to adjust to their schedule. Until mid afternoon they are busy attending their customers and post lunch session comprises of the back-end activities, processing activities and updating master files. System Hangover ICICI Bank often faces a System Crash Crisis. This was one of their challenge to put up with their unhappy customers, who are kept waiting until their integrated system is fixed. During these times, in the chaotic atmosphere, one would not like to entertain interns.

SUMMARY AND CONCLUSION

ICICI bank has successfully utilised its MIS in providing banking products to its customers and also in improving its organisational efficiency. It is one of the few banks which adapts quickly to the changing environment and keeps pace with the ever changing technology. The dramatic events ushering in the new centuryfrom globalization and a final, major wave of consolidation to regulatory changes and technology breakthroughsare compelling the bank to turn its focus toward efficiency and country relationship development. MIS has helped the bank in the following ways: Operational effectiveness, internal efficiency. Collaborative tools to help create, cultivate, and disseminate knowledge. Accessibility to data, information, and knowledge. The ability to easily search across and retrieve relevant information A project management system based on complete project lifecycle
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It is very crucial for the bank to continuously upgrade its MIS as the next 10 years will be defined by accelerated expansion of business as the bank is growing nationally and globally. It has to concentrate in improving its process efficiency to serve its customer better than its competitors. Todays banking products are getting complex every day and there is serious threat of leakage of customers confidential information to anti social elements with advent of technology. This is one of the major issues that banks face today.

Inspite of all these challenges, management information system has been a boon to ICICI bank. The bank has gained tremendous lead over its competitors who lagged behind in incorporating MIS in their organisations. Today, ICICI bank is one of the largest private sector banks in India, and MIS has played a crucial role in giving it a competitive advantage. Though the current MIS in the bank is highly beneficial, the bank is very keen on researching new avenues to improve its MIS system for better efficiency in its operations and to continue to serve its customers effectively.

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