PROJECT REPORT ON HR IMPLICATIONS IN PRIVATE BANKING

SECTOR
INTRODUCTION TO INDIAN BANKING INDUSTRY
Without a sound and effective banking system in India, it cannot have a healthy
economy. The banking system of India should not only be hassle free but it should be
able to meet new challenges posed by the technology and any other external and
internal factors.
For the past three decades Indias banking system has several outstanding
achievements to its credit. The most striking is its extensive reach. It is no longer
confined to only metropolitans or cosmopolitans in India. In fact, Indian banking
system has even reached to the remote corners of the country. This is one of the main
reasons of Indias progress.
The Governments regular policy for Indian bank since 1969 has paid rich dividends
with the nationalization of many private banks of India.

Private Banks in India

All the banks in India were earlier private banks. They were founded in the preindependence era to cater to the banking needs of the people. But after nationalization
of banks in 1969 public sector banks came to occupy dominant role in the banking
structure. Private sector banking in India received a filip in 1994 when Reserve Bank
of India encouraged setting up of private banks as part of its policy of liberalization of
the Indian Banking Industry. Housing Development Finance Corporation Limited
(HDFC) was amongst the first to receive an 'in principle' approval from the Reserve
Bank of India (RBI) to set up a bank in the private sector.
OBJECTIVES OF THE STUDY
Primary Objective:

To know the various HR implications in private banks.

Secondary Objective:

To know whether employees are satisfied with their jobs or not.

To know the various retention practices used in banks?

To know the motivational factors used by the banks?

To know whether training and development programs are conducted b the

banks or not

To know the cause of their problems related with :

1.

Their Health Problem

2.

Dissatisfaction

TABLE OF CONTENTS

INTRODUCTION TO BANKING SECTOR

OBJECTIVES OF THE STUDY

RESEARCH METHODOLOGY

ANALYSIS AND INTERPRETATION

FINDINGS

RECOMMENDATIONS

LIMITATIONS

CONCLUSION

BIBLIOGRAPHY

ANNEXURE

Project Description :
Category : Project Report for MBA
Title : TO STUDY THE HR IMPLICATIONS IN PRIVATE BANKING
SECTOR
Important Issues : Project report on HR Implications in Banking, Private
Banking, Public Banking, Project Report on Banking, Banking System, HR
MBA, What is Banking

South Indian Bank

South Indian Bank Ltd was established by a band of enterprising men at a time when Swadeshi movement was
gathering momentum. The Bank was established in Thrissur a major town in the erstwhile State of Cochin. The
objective behind establishment of the Bank was to provide for the people a safe, efficient and service oriented
repository of savings of the community on one
hand and to free the business community from
the clutches of greedy moneylenders on the other
by
providing
need
based
credit
at
reasonable
rates
of
interest.
ICICI Bank Ltd, is the biggest shareholder of the South Indian Bank holding 11.25% of the bank's equity.
South Indian Bank has several firsts to its credit

FIRST among the private sector banks in Kerala to become a scheduled bank in 1946 under the RBI Act.

FIRST bank in the private sector in India to open a Currency Chest on behalf of the RBI in April 1992.

FIRST private sector bank to open a NRI branch in November 1992.

FIRST among the Kerala based banks to offer a Credit Card to customers in November 1992.

FIRST bank in the private sector to start an Industrial Finance Branch in March 1993.

FIRST among the private sector banks in Kerala to open an "Overseas Branch" to cater exclusively to the
export and import business in June 1993..

FIRST bank in Kerala to develop an in-house, a fully integrated branch automation software in addition to
the in-house partial automation solution operational since 1992.

Presently, South Indian Bank has a network of 450 branches and 45 Extension Counters spread over 19 States/UT.

Federal Bank
Federal Bank Limited was founded as Travancore Federal Bank Limited in the year 1931, with an authorized capital
of Rs. 5000. It was established at Nedumpuram, a place near Tiruvalla, in Central Travancore (a princely state later
merged into Kerala), under Travancore Company's Act. Thirteen years later, in 1944, Shri K P Hormis and his close
relatives /friends took over the controlling interest in the bank. The following year, the paid-up capital of the bank went
up to 71,000 and its registered office shifted to Aluva, in Ernakulam district of Kerala.
With the opening of its first branch at Aluva, Travancore Federal Bank commenced its business. It was in the Board
Meeting of March 1947 that the name of the bank was changed to Federal Bank Limited. After a gap of 12 years i.e.
in 1959, the bank was licensed under Sec. 22 of the Banking Companies Act 1949, after which it floated several
kuries and launched various deposit schemes. In 1964, it took over the liabilities of Chalakudy Public Bank Ltd.
(Chalakudy),
Cochin
Union
Bank
Ltd.
(Trichur)
and
Alleppey
Bank
Ltd.
(Alleppey).
In the next five year, Federal Bank took over St.George Union Bank Ltd. Puthenpally (1965) and Marthandom
Commercial Bank Ltd. Trivandrum (1968). In 1970, it became a Scheduled Bank. Two years later, it became an
authorized dealer in Foreign Exchange. Thereafter, Federal Bank came in an expansion mode and opened 53
branches in 1975 and 42 branches in 1976. In 1984, Federal Bank set up an Agricultural Finance Department in its
head office, improving its performance in the field of agricultural and priority sector lending.
The year 1985 saw Federal Bank opening a Personnel and Industrial Relations Department and a Computer
Department. Four year later, the bank had entered the arena of Merchant Banking Operations. In 1993, ICICI group
was roped in as a shareholder, through private placement. The following year, the bank came out with its first public
issue, which was oversubscribed around 60
times. In the year 1997, Federal Bank
inaugurated its first ATM, at Eranakulam North.
Tech-Savvy
Bank
It was in the year 2000 that Federal Bank started the Any Where Banking (ABB) service, in Bangalore, followed by
the Depository Services, in association with NSDL. The same year, Internet Banking 'FedNet' was launched, with the
Federal Millennium CD being just in tow. With the start of 2001, the bank saw the launch of Wide Area Network,
connecting Regional Offices at Mumbai, Bangalore, Chennai, Ernakulam and Chennai F & I with Head Office. The
following
year, all the branches of the bank were
fully computerized
(using FedSoft).
In 2002, Federal Bank started the installation of switch for networking all the ATMs. Soon enough, it introduced
FedAlerts and FedMobile, with real-time transaction alerts and customizable options. Two years later, a call centre
was set up by the bank, attached to the Systems and Technology Department, and co-branded credit cards were
launched, in association with ICICI Bank. Not much time later, Federal Bank claimed the distinction of becoming the
first
traditional
bank
with
networked
branches,
having
100
percent
connectivity.
Products
&
Services
Federal Bank launched its International Debit Cards in the year 2004. The same year, it also provided Real Time
Gross Settlement (RTGS) facility in all the branches, followed by Online Railway Reservation (with the first kiosk at
the Marine Drive branch of Kochi). One year later, the bank launched Fed+Amrita, an online system for fixing medical
consultation, health check up, and in-patient payments, from anywhere. In 2006, Federal Bank issued GDRs,
becoming
the
first
traditional
bank
to
do
so.
Federal Bank also provides the following services:

Advances

BSNL Bill Payment

Cash Management Services

Cash -On- Line Express Cash Remittance

Credit Cards

Depository Services

Easy Pay-On-line Fee Payment System

E-shopping Payment Gateway

Export Credit Insurance Products in association with ECGC

Express Remittance Facility from Abroad - FEDFAST

General Insurance Products in association with United India Insurance

Life Insurance Products, in association with ICICI Prudential

Lock Box Service for NRI's in the US

Merchant Banking Services

NRI Services

Online Kiosks for Customers

Online LIC Insurance Payment

Online Railway Reservation System

Structured Derivative Products

The Firsts

First traditional bank in India to launch Internet Banking Service (FedNet)

First traditional bank in India to have all its branches automated

First and the only traditional bank in India to have all its branches inter-connected

First bank to launch Electronic Telephone Bill Payment in India

First and only one of the older banks with e-shopping payment gateway

First traditional bank in India introduce Mobile Alerts and Mobile Banking service

First bank in India to implement an Express Remittance Facility from Abroad

First bank in India to provide RTGS facility in all its branches.