CHAPTER: CHAPTER: CHAPTER: CHAPTER: ---- 3333

RESEARCH RESEARCH RESEARCH RESEARCH

METHODOLOGY AND METHODOLOGY AND METHODOLOGY AND METHODOLOGY AND

PROFILE OF SELECTED PROFILE OF SELECTED PROFILE OF SELECTED PROFILE OF SELECTED

NATIONALIZED BANKS NATIONALIZED BANKS NATIONALIZED BANKS NATIONALIZED BANKS

IN INDIAIN INDIAIN INDIAIN INDIA

64

CHAPTER - 3

RESEARCH METHODOLOGY AND

PROFILE OF SELECTED NATIONALISED

BANKS IN INDIA

3.1 INTRODUCTION

3.2 RESEARCH METHODOLOGY

3.2.1 OBJECTIVES OF THE STUDY

3.2.2 PERIOD OF STUDY

3.2.3 HYPOTHESES

3.2.4 LIMITATIONS OF THE STUDY

3.2.5 CHAPTERISATION SCHEME

3.3 PROFILE OF THE SELECTED NATIONALISED BANKS IN INDIA

� REFERENCES

65

3.1 INTRODUCTION

Without a sound and effective banking system in India it can not 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

other external and internal factors. For the past three decades India’s 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 reached even to

remote corners of the country. This is one of the main reasons of India’s

growth progress. The Government’s regular policy for Indian bank since 1969

has paid rich dividends with the nationalization of 14 major private banks of

India. Not long ago, an account holder had to wait for hours at the bank

counters for getting a draft or for withdrawing his own money. Today, he has a

choice. Gone are days when the most efficient bank transferred money from

one branch to another in two days. Now it is simple as instant massaging or

deals a pizza. Money has become the order of the day.

Banking in India originated in the last decades of the 18th century. The oldest

bank in existence in India is the State Bank of India, a government-owned

bank that traces its origins back to June 1806 and that is the largest

commercial bank in the country. Central banking is the responsibility of the

Reserve Bank of India, which in 1935 formally took over these responsibilities

from the then Imperial Bank of India, relegating it to commercial banking

functions. After India's independence in 1947, the Reserve Bank was

nationalized and given broader powers. In 1969 the government nationalized

the 14 largest commercial banks; the government nationalized the six next

largest in 1980.

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3.2 RESEARCH METHODOLOGY

Research is scientific and systematic search for pertinent information on a

specific topic. A research design is a logical and systematic planning of a

piece of research. In a present context, a research design includes:

• Geographical Areas

• Population and sample

• Research Tools

• Procedure for Data Collection

• Methods and Tools of Analysis

To undertake the study on the topic of “AN ANALYTICAL STUDY OF

FINANCIAL PERFORMANCE OF SELECTED NATIONALISED BANKS IN

INDIA”

Ten nationalized banks have been selected which are enumerated as under:

• Bank of Baroda

• Bank of India

• Bank of Maharashtra

• Canara Bank

• Central Bank of India

• Corporation Bank

• Dena Bank

• Indian Bank

• Punjab National Bank

• State Bank of India

The study is mainly based on the secondary data and supported by the

primary data. The secondary data is extracted from the sources like Annual

reports, consolidated profit and loss account, websites, books and journals,

circulars and reports published by the banks.

67

The sources of primary data will be comprised of personal visit, interviews,

telephonic talks, mails etc. Apart from the above, a questionnaire is prepared.

Over and above the researchers has arranged tours and visit the banks

officials to solicit their views to know their problems.

3.2.1 OBJECTIVES OF THE STUDY

The basis objective of the present study is to analyze the past and present

financial position and discuss problems relating to the operating system in the

selected nationalized banks in India.

However, the objectives are proposed in analytical study which is outlined as

follows:-

1. To know the origin and growth of selected nationalized banks.

2. To evaluate the financial performance of selected nationalized banks.

3. To make the comparative study of different nationlised banks in India

regarding the financial position.

4. To derive conclusion and suggest the measures for improving the financial

position of the selected nationalized banks if necessary.

3.2.2 PERIOD OF STUDY

For this research work, the researcher has selected 10 years period ranging

from 2000-01 TO 2009-10.

3.2.3 HYPOTHESES

H - 1 There is no significant difference between the total incomes of selected

nationalized banks.

H – 2 There is no significant difference between total expenses of selected

nationalized banks.

H - 3 There is no significant difference between the profits after tax of

selected nationalised banks.

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H – 4 There is no significant difference between total deposits of selected

nationalized banks.

H – 5 There is no significant difference between the total borrowings of

selected nationalized banks.

H – 6 There is no significant difference between net fixed assets of selected

nationalized banks.

H – 7 There is no significant difference between total working capital of

selected nationalized banks.

H – 8 There is no significant difference between loans and advances of

selected nationalised banks.

H – 9 There is no significant difference between the mean dividend paid by

selected nationalised banks.

H–10 There is no significant difference between the shareholders funds of

selected nationalized banks.

3.2.4 LIMITATIONS OF THE STUDY

• This study is mainly based on primary and secondary data from the

published annual reports, website and literature.

• The researcher has covered mainly 10 nationalised banks in India for the

purpose of the research.

• There are many other different aspects to measure profitability and

expert views are different from one another on this point.

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3.2.5 CHAPTERISATION SCHEME

The work has been divided into the following seven chapters

1. Introduction

2. Review of Literature

3. Research Methodology and Profile of Selected Nationalized Banks in

India

4. An Analysis of Financial Performance of Selected Nationalised Banks in

India

5. Problems and Prospects of the Nationalised Banks in India

6. Findings and Suggestions

The first chapter is “Introduction” which highlights the origin and growth of

the banking industries in India. The researcher has discussed about bank’s

origin, meaning, different types, pre and post nationalization era etc.

The second chapter “Review of literature” focuses on the light of available

literature which is useful for this research work. The selection of the topic for

the study has been undertaken after a brief review of available literature and

research done on this subject. The purpose of referring of research papers,

project reports, case studies, thesis and dissertation is to derive supporting

evidence for some of the finding of the study. An attempt has been made to

refer some of the national as well as international journals.

In the third chapter “Research Methodology and Profile of the selected

nationalized banks in India”, the researcher discusses about the objectives,

period, hypothesis and limitations of the study. He also discusses about the

detailed overview, the historical background and profile of the selected

nationalised banks.

In the forth chapter “An Analysis of Financial Performance of Selected

Nationalised Banks in India”, the researcher has prepared the various

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tables, graphs and charts on the income, expenditure, profit and othjer

components which affects the day to day working and financial as well as

liquidity position of the banks to find out the profitability trend and working

efficiency of the nationalised banks.

In the Fifth chapter “Problems and Prospects of the Nationalised Banks in

India”, the researcher has tried to focus the light on some challenges and

problems which the nationalised banks today face. Also, the future and the

prospects in the banking sector in the coming days are also discussed.

The Sixth chapter is on “Findings and Suggestions”, wherein the major

findings of the study and few suggestions are made to improve the financial

performance of the selected nationalised banks.

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3.3 PROFILE OF THE SELECTED NATIONALISED

BANKS IN INDIA

72

There are many banks in India as well as in Gujarat which are categorized

as nationalised banks, private banks (Indian origin), private banks ( foreign

origin), co-operative banks, Regional Rural Banks working under the lead

nationalised bank of a particular districts and many other financial institutions.

For my research purpose Indian Bank have selected 10 nationalised banks in

Indian Banks in India. Following are the profiles of that banks that have been

selected for the research purpose.

1. BANK OF BARODA

� INTRODUCTION

Bank of Baroda is one of India’s leading commercial banks. It was established

on 20th July 1908 under the Companies Act of 1887 Baroda as a private bank

and following nationalization became a wholly-owned Government bank in

1969. The initial capital invested was Rs. 10 Lakhs. The Maharaja was none

other than Sayajirao Gaekwad who, with his visionary insight, planned the

beginning of a reputed journey which over the years, came to be known as

the Bank of Baroda. During the period of 1913 to 1917; almost 87 banks in

India succumbed to a financial crisis. However, the Bank of Baroda survived

the economic depression by dint of its financial integrity, business prudence

and concern uncompromising concern about its customers and clients. This

has transcended down to the present ages and has become the motto of the

bank. Ever since its inception, the bank has been growing and expanding its

branches successfully. At the turn of a century, the bank has its presence in

25 countries across the world. Bank of Baroda has progressively taken a step

towards commitment and values by providing uncompromising standards of

service to its customers, stakeholders, employees and the like. From a small

building in this city of Gujarat, BOB bank has moved to the Bank of Baroda

corporate head office in Mumbai. The Bank of Baroda bankers have proven

their prudence with the amplifying success of BOB Bank India. The customer,

73

share holders, employees and the corporate governing team are the true

recipients of the glory Bank of Baroda enjoys in India and across the globe.

The Bank of Baroda logo signifies the financial discretion of the bank. Present

day Bank of Baroda is the successor of the erstwhile "The Bank of Baroda

Limited" From its humble beginnings, the Bank has grown, over the years, to

emerge as an Indian Financial Powerhouse, with a network of over 3,025

branches in India across the length and breadth of the country and 74

overseas branches/foreign offices in 25 countries across 5 continents serving

a Global customer base of over 34 million. In tune with times and in response

to the emerging market requirements, the Bank has set up specialized

branches dedicated to specific Customer segments. Bank has also set-up

specialised Retail, Corporate and SME Loan factories across the country

which work on assembly line principle to reduce turnaround time for sanction

of retail and corporate loans. Bank of Baroda aims at providing it's people with

a space for development through continuous learning, performance

management and other people friendly policies. We are committed to provide

our people with an environment conducive to professional as well as personal

growth.

� VISION AND MISSION

VISION

It has been a long and eventful journey of almost a century across 25

countries. Starting in 1908 from a small building in Baroda to its new hi-rise

and hi-tech Baroda Corporate Centre in Mumbai is a saga of vision,

enterprise, financial prudence and corporate governance. It is a story scripted

in corporate wisdom and social pride. It is a story crafted in private capital,

princely patronage and state ownership. It is a story of ordinary bankers and

their extraordinary contribution in the ascent of Bank of Baroda to the

formidable heights of corporate glory. It is a story that needs to be shared with

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all those millions of people - customers, stakeholders, employees & the public

at large - who in ample measure, have contributed to the making of an

institution.

MISSION

“To be a top ranking National Bank of International Standards committed to

augmenting stake holders' value through concern, care and competence”

The logo of Bank of Baroda is a unique representation of a universal symbol.

It comprises dual ‘B’ letter forms that hold the rays of the rising sun. We call

this the Baroda Sun. The sun is an excellent representation of what the bank

stands for. It is the single most powerful source of light and energy – its far

reaching rays dispel darkness to illuminate everything they touch. At Bank of

Baroda, it seeks to be the sources that will help all stakeholders realize their

goals. To their customers, they seek to be a one-stop, reliable partner who will

help them address different financial needs. To their employees, they offer

rewarding careers and to our investors and business partners, maximum

return on their investment. The single-color, compelling vermillion palette has

been carefully chosen, for its distinctiveness as it stands for hope and energy.

Bank of Baroda is characterized by diversity. Their network of branches spans

geographical and cultural boundaries and rural-urban divides. Their

customers come from a wide spectrum of Industries and backgrounds. The

Baroda Sun is a fitting face for our brand because it is a universal symbol of

dynamism and optimism.

� BRANCH NETWORK

Bank of Baroda has an extensive network of 3094 branches spanning the

length and breadth of the country. There is a branch in the vicinity of everyone

in need of a banking solution. The global presence of Bank of Baroda has

made it India's very own International Bank. The Bank of Baroda branches

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and offices have countries like USA, UAE, UK, Singapore, Thailand, Malaysia,

Mauritius, South Africa, Kenya, Hong Kong, China, Bahrain, Australia etc.

Besides these Bank of Baroda has various subsidiaries including

• BOB Asset Management Co. Ltd.

• BOB Cards Ltd.

• BOB Capital Markets Ltd.

BOB has total assets in excess of Rs. 2.27 lakh crores, or Rs. 2,274 billion, a

network of over 3000 branches and offices, and about 1100+ ATMs. It offers a

wide range of banking products and financial services to corporate and retail

customers through a variety of delivery channels and through its specialized

subsidiaries and affiliates in the areas of investment banking, credit cards and

asset management.

� AWARDS

• BOB was among the top 10 marketers according to survey conducted by

Business Today.

• BOB received the Best Bank award in the home loan category at Outlook

Money NDTV Awards.

• The bank won “Elite Category Award” for excellence in marketing and

brand communication at Association of Business Communicators of India

awards.

� OUTLOOK

• BOB and Maruti Suzuki have entered into memorandum of

understanding for car financing. The tie up will cover 600 Maruti dealers

and all BOB branches in India.

• The PSU bank is set to enter life insurance with UK-based Legal and

General Group in first quarter of 2009.

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� AT A GLANCE

Date of Establishment : 1908 Revenue : 2980.17 ( USD in Millions ) Market Cap : 215299.714825 ( Rs. in Millions ) Corporate Address : : Baroda House,

Mandvi, Vadodara-390006, Gujarat.

www.bankofbaroda.com Management Details Chairperson & M D : M D Mallya Directors : A Somasundaram, Amarjit

Chopra,Amitabh Verma, Atul Agarwal, Deepak B Patak, Deepak B Pathak, Dharmendra Bhandari, M D Mallya, M L Jain, Masarrat Shahid, Maulin A Vaishnav, Milind N Nadkarni, R K Bakshi, Rajiv Kumar Bakshi, Ranjit Kumar Chatterjee, Srinath, V Santhanaraman

Business Operation : Nationalized public sector bank

Branches : 2884

Financials : Total Income Rs. 178492.354 Million ( year ending Mar 2009) Net Profit - Rs. 22272.018 Million ( year ending Mar 2009)

Company Secretary : M L Jain Bankers-Auditors : BC Jain & Co, Gupta Nayar & Co,

A Sachdev & Co, Ashwani & Associates, NC Banerjee & Co, SK Kapoor & Co

77

2. CENTRAL BANK OF INDIA

� INTRODUCTION

Central bank of India is one of the oldest and largest commercial banks in

India . It is the wholly-owned public sector bank, based in Mumbai. It was

established in 1911 by Sir Sorabji Pochkhanawala and claims to have been

the first commercial Indian bank completely owned and managed by Indians.

The establishment of the Bank was the ultimate realisation of the dream of Sir

Sorabji Pochkhanawala, founder of the Bank. Sir Pherozesha Mehta was the

first Chairman of a truly 'Swadeshi Bank'. In fact, such was the extent of pride

felt by Sir Sorabji Pochkhanawala that he proclaimed Central Bank of India as

the 'property of the nation and the country's asset'. He also added that

'Central Bank of India lives on people's faith and regards itself as the people's

own bank'. During the past 99 years of history the Bank has weathered many

storms and faced many challenges. The Bank could successfully transform

every threat into business opportunity and excelled over its peers in the

Banking industry.

Central bank of India is one of 18 Public Sector banks in India to get

recapitalization finance from the government over the next 24 months. The

infusion of fund will improve the financial health of the banks as their capital

adequacy ratio (CAR) will be raised more than desired level of 12 percent.

The increase in CAR of the banks will also enable them to lend more money.

The CAR of Central Bank of India was less than 12 percent as on June 30

2006.

The wholly-owned public sector bank, based in Mumbai, will convert an

amount of Rs. 800 crore out of its Rs. 1,124.14-crore total equity capital into

perpetual non-cumulative preference shares.The preference shares would

carry an annual floating coupon rate of eight per cent, which would be

78

benchmarked to 100 basis points above the repo rate. It will shore up the

balance-sheet of the bank and enable it to raise capital from the markets.

Out of 28 states, CBI has presence in 27 states and in 4 union territories. It

has a network of 3413 branches and 237 extension counters.

With 97 year of banking experience it has over 25 million account holders

which is one of the largest in the banking industry.

CBI has launched film personality Perizaad Zorabian as its brand

ambassador.

In 1923, it acquired the Tata Industrial Bank in the wake of the failure of the

Alliance Bank of Simla.

In 1969, the Indian Government nationalized the bank on 19 July, together

with 13 others.

During the past 98 years of history the Bank has weathered many storms and

faced many challenges. The Bank could successfully transform every threat

into business opportunity and excelled over its peers in the Banking industry.

Central Bank of India has a large network of 3161 branches and 270

extension counters spread over 27 States and 4 Union Territories. The Bank

has a total customer base of over 25 million account holders, which is one of

the largest in the banking industry.

� VISION

To emerge as a strong, vibrant and pro-active Bank/Financial Super Market

and to sitively contribute to the emerging needs of the economy through

consistent harmonization of human, financial and technological resources and

effective risk control systems.

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� MISSION

• To transform the customer banking experience into a fruitful and

enjoyable one.

• To leverage technology for efficient and effective delivery of all banking

services.

• To have bouquet of product and services tailor-made to meet customers

aspirations.

• The pan-India spread of branches across all the state of the country will

be utilized to further the socio economic objective of the Government of

India with emphasis on Financial Inclusion.

� MILESTONES AND AWARDS

• In the year 1921 bank introduced Home Savings Safe Deposit Scheme to

build saving/ thrift habits in all sections of the society.

• CBI in 1924 introduced exclusive ladies department to serve banking

services to women clientele.

• In 1926 it introduced Safe Deposit Locker facility and Rupee Travellers'

Cheques.

• In the year 1976 it established merchant banking cell.

• Central Bank of India launched Visa Platinum and Visa Gold cards

• 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.

• On December 29, 2008, Kotak Mahindra Asset Management Company,

one of India's leading mutual fund houses, entered into a distribution tie-

up with Central Bank of India. Under the agreement Central Bank of India

will offer the entire bouquet of Kotak Mutual Fund products from the

Bank's branches.

80

• The Bank has been in the forefront in business growth also. The total

business of the Bank sharply increased by 124% touching the level of

Rs.1,97,162/- as of 30 September, 2008 from Rs. 87,857 crore as of 30

June, 2005.

• The Core Banking System (CBS) of the Bank covers 77% of its business.

And, all CBS Branches have been enabled for both RTGS and NEFT

services.

• 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 (Rudseti) at

Hoshangabad. This will provide intensive entrepreneurship training to

rural youth, to enable them to take up vocational activities. The Bank has

already set Rudsetis at Kota and Muzaffarpur.

• A Financial Literacy and Credit Counseling Centre - Centsahyog was

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.

• The Bank also launched Perizaad Zorabian, a well-known personality in

the film industry as its Brand Ambassador.

• Operating Profit of the Bank was up by 13.28% at Rs. 1,436.74 crore in

2008-09 over the Operating Profit of Rs. 1,268.30 crore in 2007-08.

• Net Profit of the Bank in 2008-09 went up to Rs. 571.24 crore up 3.83%

over the net profit of Rs. 550.16 crore in 2007-08.

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• Net Profit per employee as on March, 2009 increased to Rs. 1.71 lacs

from Rs.1.56 lacs as on March, 2008.

• The Bank had launched a special Housing Loan Scheme in January

2009 at 8.5% rate of interest for five years. The interest rate was brought

down to 8% for a period of one year.

• A special deposit scheme for children up to the age of 12 years was

launched as "Cent Bal Bhavishya" scheme with an insurance wrap in

December 2008.

• Bank has received 'Best Education Loan Provider" and runner up award

for "Best Home Loan Provider" by Outlook Money NDTV profit Award

2008".

• Bank ranked first amongst all Banc assurance partners of Life Insurance

Corporation of India.

� BRANCH NETWORK

Central Bank of India Branches are located is 27 states and 4 Union

Territories of India. It is one of the largest public sector banks operating

across the country. With a large branch network of 3563 branches along with

195 extensions counters in diverse regions, Central Bank of India delivers its

banking products and services to millions of customers. The bank also

assigns unique branch code to each and every branch in order to identify

them while making fund transfers and transactions.

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� AT A GLANCE

Date of Establishment : 1911

Revenue : 2064.61 (USD in Millions)

Market Cap : 59570.451204 (Rs. in Millions)

Corporate Address : 10th Floor Chandermukhi, Nariman

Point, Mumbai-400021, Maharashtra

www.centralbankofindia.co.in

Management Details

Chairperson & MD : S Sridhar

Directors : Arun Kaul, Brijlal Kshatriya,

C M Puri, Indu Singh Pawar, M K.

Bhattacharya, M. S. Johar, N.

Balakrishnan, N. K. Pareek,

Ramnath Pradeep, Romesh Sabharwal,

Sridhar, Shashank Saksena, Ved Prakash

Business Operation : Public Bank

Financials : Total Income - Rs. 115251.597 Million

(Year ending Mar 2009)

Net Profit - Rs. 5712.425 Million

(Year ending Mar 2009)

Company Secretary : Satish Anand Sharma

Auditors : PG Bhagwat, Chhajed & Doshi,

Bhushan Bensal Jain Associates,

Joseph & Rajaram, Ummed Jain & Co,

Murali Associates

83

3. BANK OF MAHARASHTRA � INTRODUCTION

Bank of Maharashtra is one of the leading banks of India. It incorporated on

16th September 1935 as a public limited company. After nationalization in

1969. It is one the largest network of branches by any Public sector bank in

the state of Maharashtra. Bank of Maharashtra is one of the largest public

sector banks in India. Prof. V. G. Kale and the late Shri D. K. Sathe and

registered it as a banking company in pune. The authorized capital was Rs.

10 Lakhs and issued capital of Rs. 5 Lakhs Their vision was to reach out to

and serve the common man and meet all their banking needs. Successive

leadership of the Bank and the employees have endeavored to fulfill their

vision.The bank wishes to cater to all types of needs of the entire family, in the

whole country. Its dream is "One Family, One Bank, Bank of Maharashtra ".

The Bank attained autonomous status in 1998. It helps in giving more and

more services with simplified procedures without intervention of Government.

The bank excels in Social Banking, overlooking the profit aspect; it has a good

share of Priority sector lending having 38% of its branches in rural areas.

Bank is the convener of State level Bankers committee. Bank offers

Depository services and Demat facilities at 131 branches. Bank has a tie up

with LIC of India and United India Insurance Company for sale of Insurance

policies. All the branches of the Bank are fully computerised.

� VISION

To be a vibrant, forward looking, techno-savvy, customer centric bank serving

diverse sections of the society, enhancing shareholders’ and employees’

value while moving towards global presence.

84

� MISSION

• To ensure quick and efficient response to customer expectations.

• To innovate products and services to cater to diverse sections of

society.

• To adopt latest technology on a continuous basis.

• To build proactive, professional and involved workforce.

• To enhance the shareholders’ wealth through best practices and

corporate governance.

• To enter international arena through branch network.

� HIGHLIGHTS OF THE BANK

� Autonomy secured in the year 1998 continues.

� Total business more than Rs. 91000.00 crore of which total deposits

more than Rs. 54400 crore and Gross advances more than Rs36600

crore as of 30.9.2009

� Branch network comprises of 1433 branches spread over 22 states and 2

union territories.

� Bank has migrated 831 branches under CBS as against 773 branches as

on 31.03.2009 and 798 branches as on 30.06.2009

� Bank has 345 ATMs. Bank has installed 11 Biometric ATMs. Card base

crosses 10 lakh

� ATM Card along with PIN is given to the customer as “Welcome Kit” at

the time of opening of the current and SB account in all CBS branches.

The customer can start using ATM Insta card after 36 hours from date of

issue.

� The customers can do on line shopping / e-commerce and utility bill

payment transaction through Internet Banking facility.( 37000 Customer

are using Internet Banking facility)

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� Customers can get their statement of account on registering their e-mail

id and desired frequency of statement with the Bank.

� Bank has 28 FEX centers to handle FEX business.

� Toll Free telephones at 11 major Metro centers.

� The bank is shouldering the responsibility of lead bank in six districts viz.

Satara, Pune, Thane, Nasik, Aurangabad and Jalna. Our bank is also

convening State Level Bankers’ Committee and various development

issues are taken up to implement the state credit plan and achieving the

targets under various Government sponsored schemes.

� The Bank has set up a Trust viz. Mahabank Agricultural Research and

Rural Development Foundation (MARDEF), which is engaged in

providing Credit Plus services to the farmers in specific specialised fields

like commercial dairy, Emu farming, sericulture, organic farming, etc.

� The Rural Development Centers at Bhigwan and Hadapsar in Pune

District undertake various labs to land programs on improved

technologies. A full fledged soil-testing lab is being set up for the benefit

of the farmers to go in for high-tech agriculture.

� To provide activity specific training to educated unemployed youth, Bank

has set up five Mahabank Self Employment Training Institutes (MSETI) at

Pune, Aurangabad, Nagpur, Nasik & Amravati for providing training to

rural youth for enabling them to acquire skills for self-employment

� Bank has formed a Trust by the name Gramin Mahila va Balak Vikas

Mandal (GMBVM), which is primarily engaged in formation, nurturing,

training and linkage of self-help groups to various banks, GMBVM has its

area of operation in nine districts and has been recognised by

Government of Maharashtra as Mother NGO. It also markets various

products made by SHGs through its two retail outlets by name “SAVITRI”

86

in Pune district. The GMBVM is now in the process of scaling up viable

SHGs to SMEs.

� The Bank has floated a subsidiary company- The Maharashtra Executor

& Trustee Company Ltd. (METCO) which undertakes Trustee Business,

Property Management and Tax Consultancy as well.

� Bank is the Convenor for Town Official Language Implementation

Committee (TOLIC) at Mumbai, Pune & Solapur. The Bank secured the

First Prize for better implementation of Hindi in both ‘A’ and ‘B’ Region

and the Fourth Prize for implementation of Hindi in ‘C’’ Region under

Reserve Bank of India Rajbhasha Shield Scheme for the year 2007-08.

� The Bank also secured the Second Prize under R.B.I. Bi-lingual House

Magazine Competition for the year 2008.

� BRANCH NETWORK

Bank of Maharashtra has over 12 million customers across the length and

breadth of the country served through 1577 branches in 23 states and 2 union

territories.

As on 30.09.2009 Bank has 1564 Branches in all over India.

87

� AT A GLANCE

Date of Establishment : 16-09 1935

Revenue : 847.464 ( USD in Millions )

Market Cap : 22021.098 ( Rs. in Millions )

Corporate Address : Lokmangal,1501

Shivaji Nagar,

Pune-411005,

Maharashtra

www.bankofmaharashtra.in

Management Details

Chairperson & MD : Allen C A Pereira

Directors : A K Pandit, A Y Shedshale, Allen

C A Pereira, Patwari, Chittaranjan

Patwari, Chittaranjan

Business Operation : Public Bank

Financials : Total Income - Rs. 5459.86

Crores (Year ending Mar 2009)

Net Profit - Rs. 439.58 Crores

(Year ending Mar 2009)

Company Secretary : A Y Shedshale

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4. CORPORATION BANK � INTRODUCTION

Every institution has its start in modest initiatives but what makes it great is

the passion of the people behind it. Carrying the legacy forward with an

undaunted commitment to its vision, the journey of Corporation Bank truly

epitomizes this. Started about 103 years ago in 1906, with an initial capital of

just Rs.5000, Corporation Bank came into being as Canara Banking

Corporation (Udipi) Limited, on 12th March, 1906, in the temple town of

Udupi, by the pioneering efforts of a group of visionaries. The Founder

President Khan Bahadur Haji Abdullah Haji Kasim Saheb Bahadur, committed

to fulfill the long felt banking needs of the people and also to inculcate the

habit of savings, provided the much-needed impetus to founding a financial

institution that would bring about prosperity to the society.The content of the

first Appeal to the public dated 19th February, 1906 speaks volume about the

lofty ideals and ethos behind the foundation. The Founder President Haji

Abdullah declared that “The Primary object in forming ‘Corporation’ is not only

to cultivate habits of thrift amongst all classes of people, without distinction of

caste or creed, but also habits of co-operation amongst all classes”. “This is

‘Swadeshism’ pure and simple and every lover of the country is expected to

come forward and co-operate in achieving this end in view” The initial growth

was consciously cautious and need based. The first branch of the Bank was

opened at Kundapur in 1923, followed by the second in Mangalore in 1926.

The Bank stepped into the then Coorg State in 1934 by opening its seventh

branch at Madikeri. In 1937 the Bank was included in the second schedule of

Reserve Bank of India Act, 1934.

In 1939, the Bank’s name changed from Canara Banking Corporation (Udipi)

Ltd., to “Canara Banking Corporation Ltd.,” and strongly put forth its vision

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with the motto-“Sarve Janah Sukhino Bhavantu” which means“Prosperity to

All.”

The second change in the name of the Bank occurred in 1972, from ‘Canara

Banking Corporation Ltd.’ to ‘Corporation Bank Limited.’ and finally

‘Corporation Bank’ following its nationalization on 15th April, 1980. Amidst all

this, the Bank crossed Rs.1000 crore-deposit mark in the year 1985 and

launched into the 1990s with focus on high quality growth by embracing

newer technology. The end of first phase of banking sector reforms in India

had seen the Bank emerging as the most innovative and dynamic bank in the

public sector, outshining other banks in terms of asset quality, capital

adequacy, operational efficiency, well diversified income base, profitability,

productivity, and strong balance sheet. The tremendous amount of confidence

and loyalty reposed by the public in general and customers in particular,

manifested it self in the overwhelming response to the IPO of the Bank in the

year 1997. Corporation Bank had the honour of playing host to many a

distinguished personality. During the Bank's Platinum Jubilee Celebrations in

1976, the new Administrative Office Building at Pandeshwar Mangalore was

opened by Shri B.D.Jatti, the then Vice-President of India. The bronze statue

of Pt. Jawaharlal Nehru installed by the Bank at the Traffic Island in front of its

Corporate Office at Pandeshwar Mangalore, was unveiled by Mr. Justice E.S.

Venkataramaiah, the then Chief Justice of India. In 1992, His Excellency Shri

R. Venkataraman, the then President of India, visited the Bank to inaugurate

its 85th anniversary celebrations and 60th anniversary of the Bank's

commencement of operation in Tamil Nadu state. In the year 1996, Mr.

Justice A.M.Ahmadi, the then Chief Justice of India, visited the Bank to deliver

the 90th year commemorative lecture. ‘Corporation Bank House', the new

premises of the Bank's Car Street Mangalore branch, was inaugurated by Dr.

Manmohan Singh, who was then the Union Finance Minister. Dr. C.

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Rangarajan, the then Governor of Reserve Bank of India, launched the

prestigious deposit product Corp Classic during his visit to the Bank's

Corporate Office in 1997. The Bank's new Millennium Building was

inaugurated by the then Union Minister of State for Finance Shri Vikhe Patil in

the year 2000. In the same year, Shri Yashwant Sinha, who was the Hon'ble

Union Finance Minister at that time, launched the Bank's CorpFast product at

the Corporate Office. First Public Sector Bank(other than SBI Ascociates) to

achieve 100% CBS developed and implemented by Laser Soft Infosystems

Limited,Chennai.

Completion of 100 years of banking

Corporation Bank completed 100 years of existence on 12 March 2006. The

Centenary celebrations were launched by Shri V. Leeladhar, Deputy

Governor, Reserve Bank of India with the Bank's Foundation Day lecture on

12 March 2005.

As a part of the Bank's centenary celebrations, a number of programmes and

projects were planned and executed. As a first step, the Bank has launched

the Corp Kissan Card - debit card tied up with VISA international,, to enable

the farmers make timely purchases for agricultural operations at

Yeshwantpur-Malur in Kolar District on 13 March 2005. A modern public

library was dedicated to the citizens of Mangalore in DK District, the birth

place of the Bank by Shri P. Chidambaram, Hon'ble Union Finance Minister

on 2 March 2006. The library building also houses a Numismatic Museum and

a multi purpose hall for intellectual activities. The Bank has also set up

libraries in 25 villages and given away scholarship to 100 meritorious students

of such villages for the pursuit of their higher education. Such libraries will be

set up in 75 more villages in a phased manner. Corporation Bank - A

Corporate Journey, the history of the Bank and Haji Abdullah Saheb a

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biography of the Bank's Founder President have been published on the

occasion of the valedictory function of the Bank's Centenary Celebrations.

� VISION

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

efficiency, technology, products and services.

� MISSION

• To become a provider of World - Class Financial Services.

• To meet Customer expectations through Innovation and Technological

Initiatives.

• To emerge as a Role Model with distinct culture identity, ethical values

and Good Corporate Governance.

• To enhance Shareholder's Wealth by sustained, profitable and financially

sound growth with prudent risk management systems.

• To fulfill national and social obligations as a responsible Corporate

citizen.

• To create an environment, intellectually satisfying and professionally

rewarding to the employees.

� AWARDS OF THE BANK

• National Award for Assistance to Exporters from the President of India

(1976-77).

• Gem & Jewellery Export Promotion Council Award successively for 5

years from 1981 to 1985.

• Shiromani Award 1992 for Banking from Union Minister for Commerce.

• Best Bank Award for Excellence in Banking Technology from Institute for

Development and Research in Banking Technology (IDRBT), Hyderabad

(2001.)

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• Best Bank Award for Innovative Usage and Application on INFINET

(Indian Financial Network) from Institute for Development and Research

in Banking Technology (IDRBT), Hyderabad (2002).

• Best Bank Award for Delivery Channels from Institute for Development

and Research in Banking Technology (IDRBT), Hyderabad (2003).

• Runner-up Awards in the “Best Online and Multi-channel Banking Team”

and “Outstanding achiever of the year-corporate” categories in

recognition of outstanding achievement in Banking Technology for 2004,

instituted under the aegis of Indian Banks Association and Trade Fairs &

Conferences International.

� MAJOR RECOGNITIONS

• One of the Best 200 companies worldover outside the US having a

turnover under a billion US$ - Forbes Global, Hong Kong, issue dated 27

October 2003.

• India’s Best Public Sector Bank - Business Today - KPMG Survey dated

7 December, 2003.

• India’s Strongest and Asia’s Second Strongest - The Asian Banker,

Singapore dated 15 December 2003.

• India’s Best Public Sector Bank - Outlook Money , 15 March 2004.

• One among the Best 200/100 companies in Asia/Pacific and Europe

having turnover under a billion US $ - Forbes Global, Hong Kong dated 1

November 2004.

• One among India’s Best Public Sector Banks - Business Today, 26

February 2006.

� MILESTONE AND OUTLOOK

Corporation Bank was nationalized in the year 1980. In 1997, it was the

second public sector bank in the India to enter capital market; It IPO was over

subscribed by 13 times.

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Corporation Bank’s Lower Tier II bonds aggregating to Rs 500 crore were

assigned 'CARE AAA' rating and its Upper Tier II/Perpetual Bonds issue of Rs

1,000 crore was also assigned 'CARE AAA' rating by Credit Analysis and

Research.

Corporation Bank was established in the year 1906, Corporation Bank is an

organization based on the traditional Indian values of service to the

community. Corp Bank is regarded as one of the well-run banks in the comity

of Public Sector Banks in the country.

The Bank has a unique history of 99 years of successful Banking and has

stood the test of time by growing steadily, offering vast, varied and versatile

services with a personal touch.

� BRANCH NETWORK

The branches of the Corporation Bank India are located at all the key

destinations like Bangalore, Belgaum, Bhopal, Chandigarh, Chennai,

Coimbatore, Delhi, Goa, Mumbai, Gujarat, Hassan, Hubli, Hyderabad, Kerala,

Kolkata, Lucknow, Pune, Udupi and Vijayawada. It has branches network 981

spread over 24 states and 2 union territories. It has workforce of over 12,000

bankers. It has over 2000 service outlets across India. It has ATM network of

957 across country.

Corporation Bank,

Mangaladevi Temple Road,

Pandeshwar,

Mangalore - 575 001

Karnataka, India.

Tele: 91-824-2426416 to 420

Fax: 91-824-2440964

94

The Bank has opened Representative Offices at Dubai and at Hong Kong

during the financial year. Presently, the Bank has a network of 1078 fully

automated CBS branches and 1035 ATMs across the country. The Bank has

also drawn up plans to open 700 new branches in the next five years. The

Bank has extended Branchless Banking units to 411 villages and has issued

Smart Cards to all account holders in these villages for enabling them to

operate their accounts at their doorsteps through the Business

Correspondents appointed by the Bank. Today Corporation Bank is the No1

public sector bank of India. The aggregate business of the bank is around

Rs.72, 000 crores. With employee strength of around 12,000 employees,

Corporation Bank Ltd. also being a Government of India undertaking attracts

job hunters and recruitments aspirants. The jobs are allotted on the basis of

exam conducted regularly on an All India basis.

Today, Corporation Bank India is identified with dynamic services of its young

and dedicated staffs, who know no bounds. It runs more than 600 ATMs

extending across 21 States and 2 Union Territories. It shares ATM network

with Andhra Bank, ING Vysya Bank Ltd. and IndusInd Bank Ltd.

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� AT A GLANCE

Date of Establishment : 1955

Revenue : 32.44 billion

Market Cap : 20,285.85 crore

Corporate Address : Star House C - 5, "G" Block, Bandra Kurla Complex, Bandra (East), Mumbai 400 051. www.corporationbank.in

Management Details

Chairperson & MD : O.P. Bhatt

Directors : Kalyaniwalla & Mistry, Dagliya & Co, B. M. Chatrath & Co.M. Verma & Associates, S. Krishnan Madan Verma, K. K. Soni C. R. Rema

Business Operation : Public Bank

Financials : Total Income - Rs. 113093.09

Crores (Year ending Mar 2009)

Net Profit - Rs. 1170.25 Crores

(Year ending Mar 2009)

Company Secretary : Kalyaniwalla & Mistry

Bankers & Auditors : M/S Agarwal & Saxena, M/S. Karnavat & Co, M/S L B Jha & Co, M/S Sankaran & Krishnan, M/S Chaturvedi & Shah, M/S Srb & Associates

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5. BANK OF INDIA

� INTRODUCTION

Bank of India is one of the premier and one of the oldest Commercial Banks in

India. Bank of India was established on 7th September 1906 by a group of

eminent businessmen from Mumbai. The bank was under private ownership

and control till July 1969 but after that was nationalised along with 13 other

banks. It began with a paid up capital of Rs. 50 lakhs and 50 employees, and

bank has made a rapid growth over the years and proved itself as a mighty

financial conglomerate. In business volume, the Bank occupies a premier

position among the nationalised banks. 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 nationalised banks to

establish a fully computerised 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 is an India-based company. The company operates in three

business segments: Treasury Operations, Wholesale Banking and Retail

Banking. As of March 31, 2009, the Company’s customer deposits stood at

Rs.30221 crore. As of March 31, 2009, the company’s gross investment were

53,317.00 crore. The Bank has six credit card products. The Bank has also

97

two affiliate Banks: Bank of Maharashtra and Tamilnadu Mercantile bank Ltd

issuing credit cards under the brand name India card. As of March 31, 2009,

the Company had 3021 branches in India. The bank has presence in 4

continents and 15 countries covering financial centres, such as London, New

York, Paris, Tokyo, Singapore and Hong Kong. During the fiscal year ended

March 31, 2009 (fiscal 2009), the Company opened 118 branches and

converted 20 extension counters into full-fledged branches. In its attempt

to provide its existing and new customers with a Core Banking System (CBS),

BOI has deployed a range of solutions from HP. It has signed a 10 year

contract with HP to provide services ranging from customer service and

managed services to consulting integration along with network management,

disaster recovery, business continuity and availability and system integration.

Competitive pressures from private sector banks and multinationals

compelled Bank of India to go ahead with its own technology-enabled

transformation. The Bank evaluated the option of choosing an IT partner to

manage all its infrastructure and application requirements including an IT

transformation around Core Banking.

According to P A. Kalyansundar, GM, IT, BoI, “With 1050 branches spread

across the country, it is very difficult to manage them. With distributed

database, separate LAN and no centralised system among the branches, the

top level management faced several problems while taking any decisions. To

effectively meet the ever-growing challenges and competition, the Bank made

a good headway in bringing about technological up-gradation. MIS and critical

functions of controlling offices were computerised. Further, the bank wanted

to move to the next level of IT enablement through the implementation of Core

Banking System (CBS) thereby making a paradigm shift from branch

automation to bank automation.”

98

� 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".

� BRANCH NETWORK

Bank of India Branches spread all over India. Bank of India is one of the

premier and one of the oldest Commercial Banks in India. Today the Bank

has over 2884 branches spread all over India and 27 branches/offices

overseas - in 10 countries, spanning all time zones. These branches are

controlled through 48 Zonal Offices .The Bank has a pre-eminent position in

both wholesale banking and retail banking in India. BOI has branches for

Commercial & Personal Banking, Corporate Banking, Overseas Banking,

Capital Market, Merchant Banking and specialised branches for asset

recovery, small scale industries, hi-tech agricultural finance, lease finance and

treasury.

In its attempt to provide its existing and new customers with a Core Banking

System (CBS), BoI has deployed a range of solutions from HP. It has signed

a 10 year contract with HP to provide services ranging from customer service

and managed services to consulting integration along with network

management, disaster recovery, business continuity and availability and

system integration.

99

Multi Branch Banking (Anywhere Banking) service is available to customers of

networked branches of the Bank. Under this service, the customer of one

branch will be able to transact on his account, from any other networked

branch of the Bank. This facility is at present available at 200 cities/towns

across the country. Bank of India was established in 1906 in Mumbai. Its

present head office is the same branch in Mumbai. The address of the main

branch is:

Bank of India

C-5 Star House, G Block

Bandra-Kurla Complex

Bandra (East)

Mumbai 400 051

P: +9122.66684444

Today the expanse of Bank of India spreads to 48 zonal offices. Each zonal

office manages the branches under its zone. Bank of India has a total of 2644

branches in India. The total number of employee as on 31-03-2009 was

40155.

Bank of India Overseas Branches

Bank of India is accredited to be the first Indian Bank to open an overseas

branch that was in London, UK in 1946 and also the first Indian bank in

Europe with a branch office in Paris in 1974. The global presence of Bank of

India is marked by 23 branches and offices along with three representative

offices in key business and trading centres of the world like New York (USA),

London (UK), Paris (France), Tokyo (Japan), Hong Kong (China), Singapore,

Kenya, Dubai (UAE), Canada etc.

Bank of India was the first Bank in India to open branch office outside the

country, at London, in 1946, and even it is the first to open a branch office in

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Europe, Paris in 1974. The international business accounts for around

20.10% of Bank's total business.

Bank of India: First to Launch a Fully Computerized Branch

Bank of India is the first nationalized bank in India to have set up a fully

computerized branch and an ATM centre. It is also the founder member of

SWIFT in India with the introduction of Health Code System in 1982. Bank of

India also offers depository services to the stock broking community under the

Bombay Stock Exchange (BSE) and Bank of India joint venture called the BOI

Shareholding Ltd.

The current chairman of Bank of India Mr. T.S. Narayanaswami emphasizes

on building customer relations and creating a long-term relationship offering

the best customer care. This has resulted in tremendous growth of Bank of

India in the Indian as well as global markets.

101

� AT A GLANCE

Date of Establishment : 1906

Revenue : 24393.50 crore

Market Cap : 20,228.85 crore

Corporate Address : Star House C - 5, "G" Block, Bandra Kurla Complex, Bandra (East), Mumbai 400 051. www.bankofindia.com

Management Details

Chairperson & MD : Shri Alok Kumar Misra

Directors : Shri. N. Seshadri, Shri. M S Raghavan Shri B P Sharma, Shri Kuttappan, Shri Pramod K. Panda, Shri Harvinder Singh

Business Operation : Public Bank

Financials : Total Income – Rs 2488.71

Crores (Year ending Mar 2009)

Net Profit - Rs. 1741.07 Crores

(Year ending Mar 2009)

Company Secretary : Shri. M S Raghavan

Bankers & Auditors : M/S Agarwal & Saxena, M/S. Karnavat & Co, M/S L B Jha & Co, M/S Sankaran & Krishnan, M/S Chaturvedi & Shah, M/S Srb & Associates

102

6. STATE BANK OF INDIA

� INTRODUCTION

The origin of the State Bank of India goes back to the first decade of the

nineteenth century with the establishment of the Bank of Calcutta in 1806 in

Calcutta. Three years later the bank received its charter and was re-designed

as the Bank of Bengal (2 January 1809). A unique institution, it was the first

joint-stock bank of British India sponsored by the Government of Bengal. The

Bank of Bombay (15 April 1840) and the Bank of Madras (1 July 1843)

followed the Bank of Bengal. These three banks remained at the apex of

modern banking in India till their amalgamation as the Imperial Bank of India

on 27 January 1921.

The State Bank of India, the country’s oldest Bank and a premier in terms of

balance sheet size, number of branches, market capitalization and profits is

today going through a momentous phase of Change and Transformation – the

two hundred year old Public sector behemoth is today stirring out of its public

sector legacy and moving with an agility to give the private and foreign banks

a run for their money.

An important turning point in the history of State Bank of India is the launch of

the first Five Year Plan of independent India, in 1951. The Plan aimed at

serving the Indian economy in general and the rural sector of the country, in

particular. Until the Plan, the commercial banks of the country, including the

Imperial Bank of India, confined their services to the urban sector. Moreover,

they were not equipped to respond to the growing needs of the economic

revival taking shape in the rural areas of the country. Therefore, in order to

serve the economy as a whole and rural sector in particular, the All India

Rural Credit Survey Committee recommended the formation of a state-

partnered and state-sponsored bank. The All India Rural Credit Survey

103

Committee proposed the take over of the Imperial Bank of India, and

integrating with it, the former state-owned or state-associate banks.

Subsequently, an Act was passed in the Parliament of India in May 1955. As

a result, the State Bank of India (SBI) was established on 1 July 1955. This

resulted in making the State Bank of India more powerful, because as much

as a quarter of the resources of the Indian banking system were controlled

directly by the State. Later on, the State Bank of India (Subsidiary Banks) Act

was passed in 1959. The Act enabled the State Bank of India to make the

eight former State-associated banks as its subsidiaries. The bank is entering

into many new businesses with strategic tie ups – Pension Funds, General

Insurance, Custodial Services, Private Equity, Mobile Banking, Point of Sale

Merchant Acquisition, Advisory Services, structured products etc – each one

of these initiatives having a huge potential for growth. The Bank is forging

ahead with cutting edge technology and innovative new banking models, to

expand its Rural Banking base, looking at the vast untapped potential in the

hinterland and proposes to cover 100,000 villages in the next two years.

Throughout all this change, the Bank is also attempting to change old

mindsets, attitudes and take all employees together on this exciting road to

Transformation. In a recently concluded mass internal communication

programme termed ‘Parivartan’ the Bank rolled out over 3300 two day

workshops across the country and covered over 130,000 employees in a

period of 100 days using about 400 Trainers, to drive home the message of

Change and inclusiveness. The workshops fired the imagination of the

employees with some other banks in India as well as other Public Sector

Organizations seeking to emulate the program. The CNN IBN, Network 18

recognized this momentous transformation journey, the State Bank of India is

undertaking, and has awarded the prestigious Indian of the Year, to its

Chairman, Mr. O. P. Bhatt in January 2008.

104

STATE BANK OF INDIA AFFLIATES

1. Banking Subsidiaries

• State Bank of Bikaner and Jaipur (SBBJ)

• State Bank of Hyderabad (SBH)

• State Bank of Indore (SBIr)

• State Bank of Mysore (SBM)

• State Bank of Patiala (SBP)

• State Bank of Travancore (SBT)

2. Foreign Subsidiaries

• SBI International (Maturities) Ltd., offshore bank

3. Non-banking Subsidiaries

• SBI Capital Markets Ltd.

• SBI Fund management private Ltd.

• SBI Factors and Commercial services pvt.Ltd.

• SBI DFHI Ltd.

4. Joint Ventures

• SBI Life Insurance Company Ltd. (SBI LIFE)

� VISION

To be the first choice solution provider for all banking Services. To be a

symbol of trust, efficiency and courteous service. To protect and promote

interests of all Stakeholders through well trained and, upright and dedicated

professionals. To strive for constant improvement in products, processes and

delivery channels.

� MISSION

To create a strong and vibrant banking institution with global reach, having

world class technology, products and based on the Core Values of Integrity,

Customer care and sound Corporate Governance.

105

� AWARDS AND MILESTONES

• Business Standard has awarded the Banker of the Year Award to Shri

O.P.Bhatt.

• June ’08 Awards & Recognitions CNN IBN Network 18 has selected

Shri O.P.Bhatt as Indian of the Year – Business 2007.

• Asian Centre for Corporate Governance & Sustainability and Indian

Merchants Chamber has awarded the Transformational Leader Award

2007.

• State Bank of India ranked as NO.1 in the 4Ps B & M & ICMR Survey

on India's Best Marketed Banks in August-2009.

• Shri Om Prakash Bhatt declared as one of the '25 Most Valuable

Indians' By the Week Magazine for 2009.

• State Bank of India has been adjudged The Best Bank 2009 By

Business India in August-2009.

• It bagged ‘Most Preferred Bank’ and ‘Most Preferred Brand for Home

Loan’ at CNBC Awaaz Consumer Awards.

• It became the only Indian bank to get listed in the Fortune Global 500

List.

• It was awarded Golden award for being among the two most trusted

banks in India by Readers Digest.

• SBI is ranked 6th in the Economic Times Market Cap List.

• Shri Om Prakash Bhatt declared as one of the "25 MOST VALUABLE

INDIANS" by the Week Magazine for 2009(Published in August-2009

Issue) State Bank of India is the country's premier financial institution. It

is a crucial wheel in the economy with the ability to move markets. SBI

has produced many stalwarts, and its chairman Om Prakash Bhatt

stands out among them. For Bhatt has put the bank on a high growth

path.

106

• State Bank of India Voted THE BEST BANK in Cash Management

Services in local currency by Asia Money.

• State Bank of India wins 2 awards for Best Rural Banking Initiative and

Best IT Architecture State Bank of India also improved its ranking in

“Fortune” 500 Global List, “Forbes” list of 2000 largest companies in the

world, “Banker” list of top1000 world banks, Brand Finance – Global

500 Financial Brand recognition, to name a few.

• The Bank was voted, for the third year in a row, as the “Most Preferred

Housing Loan” and “Most Preferred Bank” in the CNBC AWAAZ

Consumer Awards in a survey conducted by CNBC TV18 in association

with AG Nielsen & Company. The Bank was also awarded the “Best

Home Loan Provider” as well as “The Best Bank” – by Outlook Money

Awards, 2008.

• SBI has been rated as the Best Public Sector Bank for Rural Reach by

Dun & Brad street. The Bank has won awards for topping SHG-Bank

Credit linkage in Orissa, Jharkhand, Maharashtra, Uttarakhand, Tamil

Nadu and Uttar Pradesh.

• The Bank was awarded Reader’s Digest “Pegasus Corporate Social

Responsibility Award 2007” in recognition of its contribution towards

Rural Community Development.

• The Bank was conferred the following National awards by the

Government of India (GOI), Ministry of Micro Small and Medium

Enterprises for the FY 2007-08.

(i) First under "National Awards for excellence in lending to Micro

Enterprises".

(ii) Second under "National Awards for Excellence in MSE Lending".

(ii) The Bank was also presented an award for outstanding

performance in the area of finance to SMEs by Dun &

Bradstreet.

107

� BRANCH NETWORK

In the early 1960s, the State Bank's network already contained nearly 500

branches and sub-offices, as well as the three original head offices inherited

from the presidency bank era. Yet the State Bank now began an era of

expansion, acting as a motor for India's industrial and agricultural

development that was to transform it into one of the world's largest financial

networks. Indeed, by the early 1990s, the State Bank counted nearly 15,000

branches and offices throughout India, giving it the world's single largest

branch network.

SBI had long been present overseas, operating some 50 offices in 34

countries, including full-fledged subsidiaries in the United Kingdom, the United

States, and elsewhere. In 1995 the bank set up a new subsidiary, SBI

Commercial and International Bank Ltd., to back its corporate and

international banking services. The bank also extended its international

network into new markets such as Russia, China, and South Africa.

State Bank of India, the country’s largest lender, plans to nearly treble its

branch network to 50,000 by the end of the current decade, from 17,075 at

present. At present, SBI has 12,207 domestic and 141 overseas branches,

while the remaining ones belong to its six associate banks. There are 250

million accounts. The bank has plans to merge the associate banks with itself

over the next few years. Only Industrial and Commercial Bank of China, which

had 16,386 branches at the end of 2008 and provided services to 190 million

personal clients and 3.1 million corporate clients, matches SBI’s network. The

branch expansion plan is a reversal of SBI’s strategy at the start of the

decade. Like most banks then, SBI was focusing on its existing network and

generating more business from it. Besides, technology was expected to help

banks reach more customers. But, over the past few years, banks did a U-turn

and started opening branches in large numbers again. What helped was

108

permission from the government to recruit employees. This year alone, SBI

opened 975 branches; it intends to add another 1,000 during 2010-11. At the

start of the decade, SBI had around 9,100 branches. In recent months, the

Reserve Bank of India also liberalized its branch licensing norms, allowing

domestic banks to freely open branches in towns with a population less than

50,000.

The bank’s chairman O. P. Bhatt said the plan to open 33,000 branches was

not ambitious. Despite the thrust on financial inclusion by banks, a large

number of villages still did not have any banking service and the branches will

meet a part of the new client base that is coming. “So, you need more cover

areas which are bankable,” he said.

The corporate center of SBI is located in Mumbai. In order to cater to different

functions, there are several other establishments in and outside Mumbai,

apart from the corporate center. The bank boasts of having as many as 14

local head offices and 57 Zonal Offices, located at major cities throughout

India.

Main office of State bank of India

State Bank of India

Central Office, 8th Fl., Madame Cama Road

Mumbai 400021, India

Tel. +91-22-2288-3888

Fax +91-22-2285-5348

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� AT A GLANCE

Date of Establishment : 1955

Revenue : US$ 36.950 billion

Market Cap : Rs. 89,522.50 crore

Corporate Address : State Bank Bhavan, Corporate Centre,,Madame Cama Marg, Mumbai Maharashtra 400021 www.sbi.com

Management Details

Chairperson & MD : Diwakar Gupta

Directors : Pratip Chaudhuri, Hemant G. Contractor, Diwakar Gupta, A Krishna Kumar, Dileep C Choksi,D. Sundaram, Parthasarathy Iyengar G. D. Nadaf, Rashpal Malhotra, D. K. Mittal Subir V. Gokarn

Business Operation : Nationalized Public Bank

Financials : Total Income – Rs 3090.00

Crores (Year ending Mar 2009)

Net Profit - Rs. 1741.07 Crores

(Year ending Mar 2009)

Company Secretary : Shri. M S Raghavan

Bankers & Auditors : Viraf Mehta P. Manohara Gupta, S. Krishnan, Madan Verma, K. K. Soni C. R. Rem

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7. CANARA BANK

� INTRODUCTION

Canara Bank is an India-based commercial bank and one of the renowned

banks in the country Canara Bank was established in 1906. It is one of the

largest commercial banks of India. Canara Bank was nationalized in 1969

along with 13 other banks. Widely known for customer centricity, Canara Bank

was founded by Shri Ammembal Subba Rao Pai, a great visionary and

philanthropist, in July 1906, at Mangalore, then a small port in Karnataka. The

bank has gone through the various phases of its growth trajectory over

hundred years of its existence. Growth of Canara Bank was phenomenal,

especially after nationalization in the year 1969, attaining the status of a

national level player in terms of geographical reach and clientele segments.

Eighties was characterized by business diversification for the Bank. In June

2006, the Bank completed a century of operation in the Indian banking

industry. The eventful journey of the Bank has been characterized by several

memorable milestones. Today, Canara Bank occupies a premier position in

the committee of Indian banks. With an unbroken record of profits since its

inception, Canara Bank has several firsts to its credit. These include:

• Launching of Inter-City ATM Network

• 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

• Issuing Credit Card for Farmers

• Providing Agricultural Consultancy Services

Not just in commercial banking, the Bank has also carved a distinctive mark,

in various corporate social responsibilities, namely, serving national priorities,

promoting rural development, enhancing rural self-employment through

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several training institutes and spearheading financial inclusion objective.

Promoting an inclusive growth strategy, which has been formed as the basic

plank of national policy agenda today, is in fact deeply rooted in the Bank's

founding principles. "A good bank is not only the financial heart of the

community, but also one with an obligation of helping in every possible

manner to improve the economic conditions of the common people". These

insightful words of our founder continue to resonate even today in serving the

society with a 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. We strongly believe that the next century is

going to be equally rewarding and eventful not only in service of the nation but

also in helping the Bank emerge as a "Global Bank with Best Practices". This

justifiable belief is founded on strong fundamentals, customer centricity,

enlightened leadership and a family like work culture.

� Founding Principles

1. To remove superstition and ignorance.

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

3. To inculcate the habit of thrift and savings.

4. To transform the financial institution not only as the financial heart of

the community but the social heart as well.

5. To assist the needy.

6. To work with sense of service and dedication.

7. To develop a concern for fellow human being and sensitivity to the

surroundings with a view to make changes/remove hardships and

sufferings.

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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.

� VISION

To emerge as a ‘Best Practices Bank’ by pursuing global benchmarks in

profitability, operational efficiency, asset quality, risk management and

expanding the global reach.

� MISSION

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.

� AWARDS

• First National Award, instituted by the Ministry of Micro, Small &

Medium Enterprises, Govt. of India for 'Excellence in Micro & Small

Enterprises (MSE) Lending' for 2006-07.

• 'Golden Peacock Award for Corporate Social Responsibility' for the year

2007. Canara Bank is the first PSB to receive the award since its

institution in the year 1991.

• ‘Golden Peacock National Training Award-2007’, instituted by the

Institute of Directors, New Delhi, a pioneer in Quality Revolution.

• Conferred the Business Superbrands Status for 2008.

• 'The Organization of the Year Award- for PR Excellence', instituted by

Public Relations Council of India.

• Excellence in the field of Khadi & Village Industries in South Zone for

the year 2006-07, instituted by Khadi & Village Industries Commission,

Ministry of Micro, Small & Medium Enterprises, Government of India.

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• Conferred 'First Rank' in India's Best Banks awards under the category

'Strength and Soundness' for 2006-07 by a survey conducted by Ernst

& Young.

• Best Performing Bank under Rural Employment Generation

Programme, (REGP) of Khadi and Village Industries Commission

(KVIC), in South Zone for the year 2007-08, instituted by the Ministry of

MSME, Government of India.

• Golden Peacock National Training Award 2008 for excellence in

training.

• Global HR excellence in Training, an award conferred by the Asia

Pacific HR Congress, the largest rendezvous of HR Professionals, at its

Employer Branding Talent Management Congress held on 22nd and

23rd August 2008, Delhi.

• Best Corporate Social Responsibility Practice Award, instituted by BSE,

NASSCOM and Times Foundation.

• The Bank won two Silver Corporate Collateral Awards for Best

Corporate Ad in the Print Media and Best Corporate Film on Corporate

Social Responsibility at the Public Relations Council of India Awards

2009.

• Best Bank in South Zone Award for the year 2008-09 in respect of

lending under KVIC and PMEGP Schemes. The award was handed

over by Dr. Manmohan Singh, Hon’ble Prime Minister of India

� BRANCH NETWORK

It is one of the largest commercial banks of India. Canara Bank was

nationalized in 1969 along with 13 other banks. The branch network of

Canara Bank includes 2542 branches with the head office in Bangalore. An

international division of Canara Bank was established in 1976. The present

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international branches of Canara Bank include branches in major trade center

like London, Singapore, Dubai and Hong Kong.

The all India network of Canara Bank boasts of multiple branches in all the

major cities like Chennai, Pune, Bangalore, Mumbai, New Delhi, Gurgaon,

Kolkata, Lucknow and Hyderabad. The Canara Bank official site gives you an

ATM and branch locator that can give you the exact location and address of

your nearest Canara Bank branches and ATM's.

An international division of Canara Bank was established in 1976. The

present international branches of Canara Bank include branches in major

trade centers like London, Singapore, Dubai and Hong Kong. The total

number of employees are 44090.

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� AT A GLANCE

Date of Establishment : June 1906

Revenue : 3380.54 (USD in Millions)

Market Cap : 159531 (Rs. in Millions)

Corporate Address : 112 J C Road, Bengaluru-560002,

Karnataka.

www.canarabank.com

Management Details

Chairperson & MD : A C Mahajan

Directors : A C Mahajan, Ajay Mathur,

Devender Dass

Business Operation : Bank – Public

Financials : Total Income - Rs. 194302.666 Million

(Year ending Mar 2009)

Net Profit - Rs. 20724.2 Million

(year ending Mar 2009)

Company Secretary : S R Krishnan

Bankers Auditor : SN Mukherji & Co, De Chakraborty &

Sen, Satyanarayana

116

8. PUNJAB NATIONAL BANK

� INTRODUCTION

History of the Punjab National Bank can be traced to its inception in the year

1894. It opened with a single branch in Lahore and in 1904 two more

branches were opened Karachi and PeshawarThe Punjab National Bank is

popularly known as the PNB and has been serving its illustrious list of

customers since 1894. The PNB was set up as a result of the Indian

Companies Act and was founded by Dyal Singh Majithia and Lala Harkrishen

Lal. Its main office then was in Lahore, present day Pakistan. Owing to its

efficient operations and increasing list of clientele, the PNB has been awarded

the status of being the second largest government owned commercial bank in

India. PNB was founded in the year 1895 at Lahore (presently in Pakistan) as

an off-shoot of the Swadeshi Movement. Among the inspired founders were

Sardar Dayal Singh Majithia, Lala HarKishen Lal, Lala Lalchand, Shri Kali

Prosanna Roy, Shri E.C. Jessawala, Shri Prabhu Dayal, Bakshi Jaishi Ram,

Lala Dholan Dass. With a common missionary zeal they set about

establishing a national bank; the first one with Indian capital — owned,

managed and operated by the Indians for the benefit of the Indians. The Lion

of Punjab, Lala Lajpat Rai, was actively associated with the management of

the Bank in its formative years. The Bank made steady progress right from its

inception. It has fluctuations own resilience to tide over many a crisis. It

withstood the crisis in banking industry of 1913 and the severe depression of

the thirties. It survived the most critical period in its history — the Partlition of

1947 — when it was uprooted from its major area of operations. It was the

farsightedness of the management that the registered office of the Bank was

shifted from Lahore to Delhi in June 1947 — even before the announcement

of the Partition.

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In the meantime, the bank continued to grow its operations in India and had

by then acquired several banks and merged them in its own being. In 1969

PNB was nationalized by the government of India. Soon after, the bank went

on to open several offices in some of the major destinations of the world

including Hong Kong, Almaty, Shanghai, Dubai and London among others.

The Punjab National Bank is currently head quartered in the national capital of

New Delhi and deals in a variety of products including loans, saving options,

insurance and investment alternatives. The reach of the PNB continues to

grow and with its enhanced features and banking solutions, it continues to be

one of the leading brands in the banking industry of the country.

� BRIEF OUTLINE OF PNB

With over 38 million satisfied customers and 4668 offices, PNB has continued

to retain its leadership position among the nationalized banks. The bank

enjoys strong fundamentals, large franchise value and good brand image.

Besides being ranked as one of India's top service brands, PNB has remained

fully committed to its guiding principles of sound and prudent banking. Apart

from offering banking products, the bank has also entered the credit card &

debit card business; bullion business; life and non-life insurance business;

Gold coins & asset management business, etc. Since its humble beginning in

1895 with the distinction of being the first Indian bank to have been started

with Indian capital, PNB has achieved significant growth in business which at

the end of March 2009 amounted to Rs 3,64,463 crore. Today, with assets of

more than Rs 2, 46,900 crore, PNB is ranked as the 3rd largest bank in the

country (after SBI and ICICI Bank) and has the 2nd largest network of

branches (4668 including 238 extension counters and 3 overseas

offices).During the FY 2008-09, with 39% share of low cost deposits, the bank

achieved a net profit of Rs 3,091 crore, maintaining its number ONE position

amongst nationalized banks. Bank has a strong capital base with capital

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adequacy ratio as per Basel II at 14.03% with Tier I and Tier II capital ratio at

8.98% and 5.05% respectively as on March’09. As on March’09, the Bank has

the Gross and Net NPA ratio of only 1.77% and 0.17% respectively. During

the FY 2008-09, its’ ratio of priority sector credit to adjusted net bank credit at

41.53% & agriculture credit to adjusted net bank credit at 19.72% was also

higher than the respective national goals of 40% & 18%. PNB has always

looked at technology as a key facilitator to provide better customer service

and ensured that its ‘IT strategy’ follows the ‘Business strategy’ so as to arrive

at “Best Fit”. The bank has made rapid strides in this direction. Alongwith the

achievement of 100% branch computerization, one of the major achievements

of the Bank is covering all the branches of the Bank under Core Banking

Solution (CBS), thus covering 100% of it’s business and providing ‘Anytime

Anywhere’ banking facility to all customers including customers of more than

2000 rural branches. The bank has also been offering Internet banking

services to the customers of CBS branches like booking of tickets, payment of

bills of utilities, purchase of airline tickets etc.Towards developing a cost

effective alternative channels of delivery, the bank with more than 2150 ATMs

has the largest ATM network amongst Nationalised Banks. With the help of

advanced technology, the Bank has been a frontrunner in the industry so far

as the initiatives for Financial Inclusion is concerned. With its policy of

inclusive growth in the Indo-Gangetic belt, the Bank’s mission is “Banking for

Unbanked”. The Bank has launched a drive for biometric smart card based

technology enabled Financial Inclusion with the help of Business

Correspondents/Business Facilitators (BC/BF) so as to reach out to the last

mile customer. The BC/BF will address the outreach issue while technology

will provide cost effective and transparent services. The Bank has started

several innovative initiatives for marginal groups like rickshaw pullers,

vegetable vendors, diary farmers, construction workers, etc. The Bank has

already achieved 100% financial inclusion in 21,408 villages.

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Backed by strong domestic performance, the bank is planning to realize its

global aspirations. In order to increase its international presence, the Bank

continues its selective foray in international markets with presence in

Hongkong, Dubai, Kazakhstan, UK, Shanghai, Singapore, Kabul and Norway.

A second branch in Hongkong at Kowloon was opened in the first week of

April’09. Bank is also in the process of establishing its presence in China,

Bhutan, DIFC Dubai, Canada and Singapore. The bank also has a joint

venture with Everest Bank Ltd. (EBL), Nepal. Under the long term vision,

Bank proposes to start its operation in Fiji Island, Australia and Indonesia.

Bank continues with its goal to become a household brand with global

expertise. Amongst Top 1000 Banks in the World; ‘The Banker’ listed PNB at

250th place. Further, PNB is at the 1166th position among 48 Indian firms

making it to a list of the world’s biggest companies compiled by the US

magazine ‘Forbes’.

Punjab National Bank continues to maintain its frontline position in the Indian

banking industry. In particular, the bank has retained its NUMBER ONE

position among the nationalized banks in terms of number of branches,

Deposit, Advances, total Business, operating and net profit in the year 2008-

09. The impressive operational and financial performance has been brought

about by Bank’s focus on customer based business with thrust on SME,

Agriculture, more inclusive approach to banking; better asset liability

management; improved margin management, thrust on recovery and

increased efficiency in core operations of the Bank. The performance

highlights of the bank in terms of business and profit are shown below:

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� PNB AT A GLANCE

• A professionally managed bank with a successful track record of over

110 years.

• Largest branch network in India - 4525 Offices including 432 Extension

Counters spread throughout the country.

• Strategic business area covers the large Indo-Gangetic belt and the

metropolitan centres.

• Ranked as 248th biggest bank in the world by Bankers Almanac, London.

• Strong correspondent banking relationships with more than 217

international banks of the world.

• More than 50 renowned international banks maintain their Rupee

Accounts with PNB.

• Well equipped dealing rooms; 20 different foreign currency accounts are

maintained at major centres all over the globe.

Rupee drawing arrangements with M/s UAE Exchange Centre, UAE, M/s Al

Fardan Exchange Co. Doha, Qatar,M/s Bahrain Exchange Co, Kuwait, M/s

Bahrain Finance Co, Bahrain,M/s Thomas Cook Al Rostamani Exchange Co.

Dubai,UAE, and M/s Musandam Exchange, Ruwi, Sultanate of Oman.

� VISION

"To be a Leading Global Bank with Pan India footprints and become a

household brand in the Indo-Gangetic Plains providing entire range of

financial products and services under one roof."

� MISSION

"Banking for the unbanked”

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� AWARDS & ACHIEVEMENTS

• "Best IT Team of the Year Award" At the IDRBT Banking Technology

awards for the year 2005-06.

• “SKOTCH Challenger Award” for Change Management for the year

2005-06.

• “Best IT User in Banking & Financial Services Industry – 2004” by

NASSCOM in partnership with Economic Times.

• “Golden Peacock Award” for Excellence in Corporate Governance - 2005

by Institute of Directors.

• “FICCI's Rural Development Award” for Excellence in Rural Development

– 2005.

• “Skotch Challenger Award for Exemplary use of Technology” for

becoming a pioneer in Public Banks – 2005.

• “Golden Peacock National Training - 2004 & 2005” by Institute of

Directors.

• “National Award for Excellence in SSI Lending” Ranked 2nd for 4

consecutive years - 2002, 2003, 2004 & 2005.

• “Banking Technology Awards 2004” Runner up in Best IT Team of the

Year Award 2005 Jointly Adjudged by IBA, Finacle & TFCI.

• “Money Outlook Award – 2004” Runner up in Best Bank (public Sector) of

the year Award -2005.

• “21st Amongst Top 500 Companies” by the leading Financial Daily The

Economic Times, June 2005.

• 3rd Rank amongst Banking Sector in India 323rd rank in the world by The

Bankers' Almanac, January 2006.

• “368 amongst Top 1000 Global Banks” by The Banker, London July

2005.

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� BRANCH NETWORK

Bank has its Corporate Office at New Delhi and supervises 66 Circle Offices

under which the branches function. The delegation of powers is decentralised

upto the branch level to facilitate quick decision making. PNB has its branches

in the following states:-

Assam , Andhra Pradesh, Bihar, Chandigarh, Chhattisgarh, Delhi, Goa,

Himachal Pradesh, Jammu Kashmir, Jharkhand, Karnataka, Kerala, Madhya

Pradesh, Maharashtra, Meghalaya, Orissa, Pondicherry, Punjab,

Rajasthan, Sikkim ,Tamilnadu, Tripura ,Uttar pradesh, Uttaranchal, West

Bengal.

Punjab National Bank caters to 3.5 crore customers through a network of over

4525 offices. The Economic Times has designated it as the Most Trusted

Bank in India and has ranked it as 21st amongst top 500 companies

worldwide. Punjab National Bank offers banking services, which include

corporate and personal banking, industrial finance, agricultural finance,

financing of trade and international banking. The bank has been conscious of

Corporate Social Responsility (CSR) and has been financing agricultural

activities and SSIs. It is trying to expand its operations overseas by setting up

offices in Shanghai, London, and Kabul. It also offers Internet banking

facilities and is deploying the concept of 'Anytime Anywhere Banking'.

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� AT A GLANCE

Date of Establishment : 1895

Revenue : Rs. 31,206 crore

Market Cap : Rs.28.522.50 crore

Corporate Address : 5, Sansad Marg, New Delhi - 110001

www.pnbindia.in

Management Details

Chairperson & MD : K R Kamath

Directors : Sardar Dayal Singh Majithia, Lala Lalchand Kali Prosanna Roy, Lala Harkishan Lal ,EC Jessawala, Lala Prabhu Dayal, Bakshi Jaishi Ram, Lala Dholan Dass,

Business Operation : Public Sector

Financials : Total Income - Rs. 3091crore

(Year ending Mar 2009)

Net Profit - Rs. 3090.88 crore

(Year ending Mar 2009)

Company Secretary & Bankers : M/s V. K. Verma & Co. M/s Mookherjee Biswas & Pathak, M/s Amit Ray & Co. M/s Sarda & Pareek,

124

9. DENA BANK

� INTRODUCTION

Dena Bank is one of the leading banks in India. Dena Bank, in July 1969

along with 13 other major banks was nationalized. Dena Bank is now a Public

Sector Bank constituted under the Banking Companies (Acquisition &

Transfer of Undertakings) Act, 1970.Dena Bank was founded on 26th May,

1938 by the family of Devkaran Nanjee under the name Devkaran Nanjee

Banking Company Ltd.It became a Public Ltd. Company in December 1939

and later the name was changed to Dena Bank Ltd.In July 1969 Dena Bank

Ltd. along with 13 other major banks was nationalized and is now a Public

Sector Bank constituted under the Banking Companies (Acquisition &

Transfer of Undertakings) Act, 1970. Under the provisions of the Banking

Regulations Act 1949, in addition to the business of banking, the Bank can

undertake other business as specified in Section 6 of the Banking Regulations

Act, 1949. Dena Bank is amongst the first nationalised bank to enter equity

market in November 1996. Today, out of the equity capital of Rs.286.82 crore,

51.19% is held by the Govt of India. The shares of the Bank are listed with

National Stock Exchange of India Limited and Mumbai Stock Exchange

Limited. Investor Relations Centre has been set up by the Bank at its Dena

Corporate Centre at Mumbai to cater to the any assistance to our

shareholders and Bondholders. The Department is well equipped for any

assistance for dematerilaisation of shares, share transfers, transmissions,

change of address, non-reciept of dividend, duplicate/missing share

certificates and other matters pertaining to the shares and Bonds Dena Bank

was one of the six Public Sector Banks which had been chosen by the World

Bank in the year 1995 for granting a loan of Rs. 72.3 Crores under Financial

Sector Development project. Also, it is one of the few banks which have been

given a loan by the World Bank for technological advancement and training.

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Dena Bank has maintained a strong technological infrastructure with state-of-

the-art IT innovations and solutions implemented at its branches and back-

end.100% branches of the bank have been fully computerized, and the bank

has established its own network called “DENANET” to ensure seamless

connectivity and smooth workflow all the way through its banking process.

DENANET is comprised of VSATs, leased lines, dial-up lines and ISDN

backups, and is completely integrated with the Indian Financial Network

(INFINET) of the Reserve Bank of India (RBI).

� HISTORY

In 1969, The Bank was brought into existence by an Ordinance issued on

19thJuly, by the Central Government. The Bank is a Government of India

Undertaking and carries on all types of banking business. In1970 the Bank

Companies Act, 1969, was declared null and void by theSupreme Court on

the 10th February and was made effective retrospectively from 19th July,

1969. Under the `Lead Bank' scheme the Bank was allotted 9 districts of

which 6 were in Gujarat, 2 in M.P. and one in the Union Territoriesof Dadra

and Nagar Haveli. In 1971 Branches were opened in most of the lead districts.

Bank took up second stage of the lead bank scheme. District level

consultative committees were set up in all the districts. In 1978 The Bank had

set up its first regional rural bank in the Kutch district of Gujarat State in

December.

� VISION

Dena Bank will emerge as the most preferred Bank of customer choice in its

area of operations, by its reputation and performance.

126

� MISSION

Dena Bank will provide its

Customers - premier financial services of great value,

Staff - positive work environment and opportunity for growth an

Achievement,

Shareholders - superior financial returns,

Community - economic growth.

� MILESTONES

• One among six Public Sector Banks selected by the World Bank for

sanctioning a loan of Rs.72.3 crores for augmentation of Tier-II Capital

under Financial Sector Developmental project in the year 1995.

• One among the few Banks to receive the World Bank loan for

technological supgradation and training.

• Launched a Bond Issue of Rs.92.13 crores in November 1996.

• Maiden Public Issue of Rs.180 Crores in November 1996.

� BRANCH NETWORK

Dena bank head office located in Mumbai has a network of 1291(31.03.2011)

branches spread across the country. The bank has a network of 496 ATMs all

across India out of which 105 ATMs are off site(31.03.2011). Dena bank

introduced core banking on March 2007 at its Mahim branch in Mumbai. In all,

850 branches out of the 1122 branches including extension counters of the

Bank are schedule for coverage.

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� AT A GLANCE

Date of Establishment : 26-05 1938

Revenue : 680.785 (USD in Millions)

Market Cap : 22171.43336 (Rs. in Millions)

Corporate Address : Dena Corporate Centre,

C/10 G Block,

Bandra Kurla Complex

Bandra (East)Mumbai-400051,

Maharashtra

www.denabank.com

Management Details

Chairperson & MD : D L Rawal

Directors : A Gopalakrishnan, Anil K Gupta, Anup

Mehta, Bhaskar Sen, C M Dixit, Chandra

Kishore, D L Raval, D L Rawal, K K Goel,

Kamlesh Kumar Goel, M G Shinde, M

Surya Naik, Rohit Khanna, Sunil Gupta,

Tarsem Chand, U S Kohli, V S Sivakumar,

Vilas D Patil

Business Operation : Bank – Public

Financials : Total Income - Rs. 38776.208 Million

(Year ending Mar 2009)

Net Profit - Rs. 4226.622 Million

(Year ending Mar 2009)

Company Secretary & Bankers : Auditors RK Deepak & Co, B Gupta & Co,

Parikh & Associates, Jain Chowdhary &

Co, Gokhale & Sathe

128

10. INDIAN BANK

� INTRODUCTION

The Bank was incorporated on March 5, 1907 under the Indian Companies

Act, 1882 as Indian Bank Limited and commenced operations on August 15,

1907. The Head Office of the Bank was set up at Parry’s Buildings, Parry’s

Corner in Chennai (then known as Madras) and was shifted to Bentincks

Buildings on Rajaji Salai (then known as North Beach Road), Chennai in July

1910. Subsequently, in May 1970, the Head Office was shifted to its present

location with its address as 31, Rajaji Salai, Chennai, in abuilding which

stands on the same site as Bentinck’s Building. On February 8, 2003 the

Head Office was renumbered as 66, Rajaji Salai, Chennai 600 001, India.

Indian Bank is one of the indigenous banks of India that emerged as a result

of the Swadeshi Movement during the British Raj. One of the prime figures

associated with the establishment of the bank was V. Krishnaswamy Iyer, a

lawyer from Madras (Now Chennai). The bank soon spread its wings outside

India too, and opened its branch in Colombo, Sri Lanka in the year 1932 and

Rangoon, Burma in 1940. The bank was further nationalized by the

Government of India in the year 1969.

� HISTORY

Closure, merger or rehabilitation, summed up the options available to the

ailing Indian Bank in 1999, when the Working Group, set up by the Reserve

Bank of India (RBI)1 in consultation with the Government of India (GoI),

submitted its report on weak banks. On considering the options, the Group did

not favor closure because it believed that the cost of closure, to depositors,

clients and employees of the bank, would be too high.

With a heritage that went back to the early 1900s, Indian Bank proudly

boasted of the 'nine decades of trust' vested in it by its loyal customer base.

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The Bank was first set up in 1907 as a part of the Swadeshi Movement.2

Headquartered in Chennai (formerly known as Madras) in the south Indian

State of Tamil Nadu, the bank played an important role in the development of

the southern region of India, especially in the years that followed India's

achievement of independence in 1947.

A New Banking Regime

The two bank nationalization programs of the GOI (in 1969 and 1980), led to

the strengthening of the banking sector by increasing the clout of PSBs. With

branches numbering well over 60,000 and deposits of Rs 1, 10,000 crores,

PSBs held a combined market share of 90 percent by the early 1990s. Private

and foreign banks (which had begun operating in the country after the

Industrial Policy Resolution of 1991 opened up the banking sector) could not

dream of matching the hold the PSBs had on the Indian public. With the

provision of timely governmental assistance, PSBs worked reasonably well,

achieving most of the quantitative and social targets set out for them in the

planned progress of India.

However, in the 1990s, the RBI and GOI realized that it would not suffice to

measure the growth and success of PSBs in terms of quantitative and social

targets alone. They realized that PSBs, operating as they did in a highly

regulated and protected environment, did not measure up to international

standards on certain parameters. This discrepancy seemed even more glaring

when contrasted with foreign banks that had opened branches in the country

in the 1990s, and posed a serious threat to PSBs with their promises of better

service quality.

To help PSBs cope better with the new operational norms, the GOI and RBI

set up a committee headed by M.S. Verma (former Chairman of the State

Bank of India) in early 1999, to study weak public sector banks and suggest

130

measures for their revival. The committee developed a set of 7 parameters

under three major heads, to classify the PSBs into three categories and

suggest measures for improvement accordingly. The Categories were as

follows –

Category I; Banks where none of the seven parameters were met

Category II; Banks were all the parameters were met and

Category III; Banks were some of the parameters were not met.

Indian Bank fell into the first category. The parameters on which the

strength/weakness of the banks was determined are given below.

The Seven Parameters of Efficiency Adopted by the Working Group were as

under:

Solvency

Capital Adequacy Ratio (CAR)

Coverage Ratio

Earning Capacity

Return on Assets

Net interest margin

Profitability

Ratio of operating profit to average working funds

Ratio of cost to income

Ratio of staff cost to net interest income + all other income

The Trouble with Indian Bank

The decline of Indian Bank was, by no means, a sudden phenomenon. The

operations of the bank had been faulty for sometime, by because of the

financial and other forms of aid provided by the GOI, they did come to light.

The loopholes were first exposed by the introduction of the new banking

norms. Firstly, although the bank had a loyal customer base, it was thought

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that people stayed with Indian Bank only because of a lack of competitive

alternatives. Customers, who felt that one PSB was as good as another, did

not feel the need to move to other banks. However, with the opening up of the

banking sector in the 1990s, private banks began offering more variety and

flexibility in services. The rather primitive operations of Indian bank caused

customers to drift away. The report of the Working Group also suggested that

some of the credit decisions taken by the bank in the early 1990s were cases

of misfeasance. Former Chairman and Managing Director (CMD), M.

Gopalakrishnan (Gopalakrishnan) was influenced by political considerations

and granted loans to some parties who would otherwise not have qualified for

loans.

This made some of the loans granted during his tenure come under

investigation. The granting of loans without due consideration for the credit-

worthiness of the client also led to a steep rise in the non-performing assets

(NPA) figure. In the mid to late-1990s, the gross NPA of Indian Bank

constituted about 37 percent of the gross advances - an unacceptably high

figure and the highest among public sector banks. Gopalakrishnan and some

other employees of the bank were charge sheeted in the late 1990s. While

corruption weakened Indian Bank, the operational aspects also left a lot to be

desired. Indian Bank sponsored four Regional Rural Banks (RRBs) under the

lead bank scheme initiated by the RBI. The losses of these RRBs increased

the liability of the bank. The bank also had three specialized subsidiaries -

IndBank Housing Ltd, IndFund Management Ltd and IndBank Merchant

Banking Services Ltd, in the areas of housing, mutual funds and merchant

banking respectively. The poor functioning of these subsidiaries rendered the

Rs 121 crores investment that the bank had made in them, a dead

investment. Indian Bank also had a liability to invest additional amounts in

these subsidiaries, to meet client obligations.

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Human Resources, thought to be the life-blood of any institution, were in a

poor shape at Indian Bank. Firstly, there were far too many people than were

required and the ratio of the staff costs to the bank's total income was well

over 23 - considerably higher than stronger banks like Oriental Bank of

Commerce and Corporation Bank, where it was only around 10. The average

age of the staff in the late 1990s was 47 and the staff lacked motivation and

initiative. Productivity per employee was also relatively lower than better

placed banks. The bank needed an infusion of enthusiasm and freshness but

there had been no recruitment for a considerable time. In some cadres, there

had been no promotions for over 10 years, which compounded the problem of

low motivation.

In addition to this, there were several management glitches which put a spoke

in the bank's progress. There was no system of succession planning and

senior level officers were not groomed to take over responsibilities as

Executive Director (ED) or CMD at the same bank. Because of this, senior

managers did not associate themselves with the bank. The Board of Directors

was rather complacent and did not often question the working of the bank.

Appointments to the posts of ED and CMD were also irregular and the same

people were given constant extensions.

A system-wide restructuring, therefore, became imperative to put Indian Bank

back on its feet. In 2000, Ranjana Kumar (Kumar) was appointed as the CMD

of Indian Bank. Kumar had begun her career at Bank of India (head office at

Mumbai) and was, at the time of her appointment to Indian Bank, working as

the ED of Canara Bank, another PSB based in the city of Bangalore. Her wide

exposure in banking, believed the RBI and the GOI, qualified her to take up

the challenge of turning the fortunes of Indian Bank.

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Efforts at Restructuring

Efforts at reviving Indian Bank began in July 2000 when the management, led

by Kumar, submitted a plan to the GOI detailing the steps it proposed to take

during the three-year restructuring period. Kumar requested the finance

ministry for recapitalization funds, but the GOI decided to defer it until such a

time as the bank showed a distinct improvement. Kumar began the

restructuring by entering into a written agreement with the trade unions,

seeking their cooperation on the three year long initiative.

Soon after that, the structure of the bank was modified to make operations

simpler and to ensure speedy decision making. The original four-tiered

structure was modified into a three-tiered one, by doing away with the zonal

office level. The three levels in the new structure were - head office, regional

offices and the branches. This removed one level in the process of decision

making. Regional offices were also vested with more powers to enable them

to take decisions at their level and consequently, provide better services to

customers. Similarly, branch segmentation was also done to cater to the

needs of various target markets.

The branches were segmented into 4 categories - corporate, commercial,

personal and rural. To create a more streamlined structure, several branches

across the country were also merged. By 2003, 119 of the total 1400

branches in India had been merged.

In an effort to pare down excess staff and making the organization leaner, the

bank implemented a Voluntary Retirement Scheme (VRS). Through the VRS,

the bank shed over 3400 employees, bringing the staff number down to

22,400 by March 2003 from nearly 26,000 in 1999. The VRS cost Rs 96

crores, part of which was paid as cash and part as bonds. Indian Bank also

adopted the practice of employing fresh MBAs for three months in summer, to

provide a fresh view on things. After eight years of no recruitments, Indian

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Bank conducted a recruitment drive for probationary officers in 2003 and

selected 250 people. The new officers were expected to join the bank by early

2004. The bank also recruited 58 specialist officers like MBAs and BEs to

make operations more professional.

To bring down the huge NPA levels that were bogging it down, the bank took

advantage of the 'securitization' Act passed by the Indian Parliament, to

foreclose and seize assets. It issued over 700 notices to defaulters and

confiscated 12 properties. Restructuring also involved the sale of the Mutual

Fund subsidiary to Tata AMC, a private mutual fund company, for around Rs

62 lakh. The housing subsidiary was taken over by the bank for restructuring

and its merchant banking subsidiary was to be sold.

The bank also entered into a five-way tie-up with other public sector banks for

sharing of ATMs. (The other partners were Punjab National Bank, Bank of

India, Syndicate Bank and United Bank of India). "With this, the number of

ATMs that an Indian Bank customer would be able to access would go up to

about 1, 000," said Kumar.6 On its own, Indian Bank had set up 75 ATMs by

the end of March 2003 and was planning about 30 more by the end of 2003.

Plans were also on the anvil for the opening of 10 new branches across the

country by the end of 2003. To keep up with private and foreign banks, Indian

bank went on a technology drive and took up the computerization of its

branches. During the restructuring period, the bank began focusing on retail

products, which it called 'structured loan schemes'. In 2001-2002, it

introduced 12 new retail schemes for customers. During 2001-02, it disbursed

close to Rs. 1,020 crores under these. Home loans were the major form of

loans, followed by personal loans, trade finance and the like. To diversify its

portfolio of services, Indian Bank also entered into an agreement with HDFC

Standard Life, to sell the latter's insurance products. (Refer Exhibit-II for a list

of the loans provided by Indian Bank in 2003).

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The Revival

The official Indian Bank turnaround period was three years - 2000 to 2003.

However, efforts started yielding fruit within the first year itself. The first ray of

sunshine came in 2000-2001, when the bank posted its first operating profit of

Rs 61.59 crore after years of losses. The turnaround finally happened, when

Indian Bank posted its first net profit of Rs 33 crores in six years in 2001-

2002. In fiscal 2002-2003, net profits increased by 468 percent to Rs 188

crores.

In the Business Standard Annual 'Banker of the Year Survey' in 2003, Indian

Bank was ranked second on the growth parameter, no mean achievement for

a bank which was in the throes of losses half a decade ago. The honor was

not surprising, considering the fact that over 25 percent of Indian Bank's

business since its inception had been done in the three year period between

2000 and 2003. (Out of the total business of Rs.40, 000 crore, Rs.11, 000

crore was brought in during the three-year period). There was also a

considerable increase in deposits. Total global deposits increased to Rs.27,

015.92crore in 2002-2003 from Rs.24038.84 crore in 2001-2002.

(During the period of turnaround total global deposits had been increasing at a

rate of around 10 percent per annum.) Operating profit recorded the highest

ever growth rate of 92.17 per cent to Rs.590.25 crore during the same period.

Net profit also zoomed to Rs.188.83 crore against Rs.33 crore in 2001-02.

Although deposits increased, cost of deposits had come down from nearly 9

percent to about 7.5 percent during the restructuring period. The

computerization efforts also paid off, and by early 2003 almost 600 branches

had been computerized, covering nearly 78 percent of the business. The bank

had also considerably increased its ATM coverage in most of the prominent

centers in the country. It had 47 online ATMs, which offered Any Branch

Banking in 12 major cities across India.

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By going on a loan recovery drive and exercising prudence in granting loans,

the bank performed an admirable feat in reducing its gross NPA levels from a

whopping 44 percent in 1999, to 12 percent in 2003. The net NPA also fell

from around 16 percent to 6.15 percent during the same period. During the

restructuring program, over Rs 600 crores of sticky loans were recovered.

Encouraged by the progress of the bank, the RBI had released a

recapitalization amount of Rs 1300 crores in 2002. With the infusion of the

recapitalization funds, Indian Bank managed to reach a CAR level of over 10

percent, which was slightly higher than the minimum acceptable level.

Commenting on the turnaround, Kumar said, "During the three years of the

restructuring plan, the bank could achieve consistent growth in business and

also sustain its turnaround due to initiation of various structural, operational

and cost control measures. The bank has also worked on marketing and

motivational strategies and strengthened its planning and monitoring

systems." She further added, "We have been able to meet all the major

parameters that the RBI and the Government had set before us. Throughout

this period, the RBI and the Government watched us closely."

� ABOUT THE BANK

A premier bank owned by the Government of India

• Established on 15th August 1907 as part of the Swadeshi movement.

• Serving the nation with a team of over 19000 dedicated staff.

• Total Business crossed Rs.1,50,886 Crores as on 31.03.2010.

• Operating Profit increased to Rs. 2747.35 Crores as on 31.03-2010.

• Net Profit increased to Rs.1554.99 Crores as on 31.03.2010.

• Core Banking Solution(CBS) in all 1762 branches.

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International Presence

• Overseas branches in Singapore and Colombo including a Foreign

Currency Banking Unit at Colombo.

• 240 Overseas Correspondent banks in 70 countries.

A front runner in specialised banking

• 97 Forex Authorised branches inclusive of 1 Specialised Overseas Branch

at Chennai exclusively for handling forex transactions arising out of Export,

Import, Remittances and Non Resident Indian business

• 62 Special SME Branches extending finance exclusively to SSI units

Leadership in Rural Development

• Pioneer in introducing Self Help Groups and Financial Inclusion Project in

the country.

• Award winner for Excellence in Agricultural Lending from Honourable

Union Minister for Finance.

• Best Performer Award for Micro-Finance activities in Tamil Nadu and

Union Territory of Puducherry from NABARD.

• Established 7 specialized exclusive Microfinance branches called

"Microsate" across the country to cater the needs of urban poor through

SHG (Self Help Group)/JLG (Joint Liability Group) concepts.

• A special window for Micro finance viz., Micro Credit Kendras are

functioning in 44 Rural/Semi Urban branches.

• Harnessing ICT (Information and Communication Technology) for Rural

Development and Inclusive Banking.

• Provision of technical assistance and project reports in Agriculture to

entrepreneurs through Agricultural Consultancy & Technical Services

(ACTS).

138

A pioneer in introducing the latest technology in Banking

• 100% Core Banking Solution(CBS) Branches

• 100% Business Computerisation

• 1010 connected Automated Teller Machines(ATM)

• 24 x 7 Service through 57000 ATMs under shared network

• Internet and Tele Banking services to all Core Banking customers

• e-payment facility for Corporate customers • Cash Management Services

• Depository Services

• Reuter Screen, Telerate, Reuter Monitors, Dealing System provided at

Overseas Branch, Chennai

• I B Credit Card Launched

• I B Gold Coin

Global Presence

The modest beginning made by the Indian Bank has come a long way since

then, with 1642 branches located nationwide within India and Overseas

branches in Singapore and Colombo as of April 2009. The bank also has 40

Overseas Correspondent banks in 70 countries, giving a strong presence

internationally. A 22,000 strong workforce of dedicated employees takes pride

in serving the Indian Bank.

Banking Activities

Indian Bank offers a wide variety of Banking Products and Services to its

customers, including various Deposit Schemes, Loan Options, Financial

Services, Stock Investment Services and a number of specialized services

such as Remittance, Collection, 7 Day Banking Branches, Cash Management

and Electronic Funds Transfer. As of April 2009, the bank has Core Banking

Solution (CBS) implemented in its 1642 branches and 66 extension counters.

139

The bank has 755 connected Automatic Teller Machines (ATMs) installed in

225 locations nationwide.

Subsidiary Company

Apart from its Regular Banking Services, the Indian Bank has also been

offering various other services through its 3 subsidiary companies, which are

Indbank Merchant Banking Services Ltd., Ind Bank Housing Ltd. and IndFund

Management Ltd.

Rural Banking

Indian Bank has been a leader in bringing new initiatives for development of

rural banking and extending help to the farmers of India. The bank has

received award from Honorable Union Minister of Finance for Excellence in

Agricultural Lending. Apart from it, the bank also received the Best Performer

Award for Micro-Finance activities in Tamil Nadu and Union Territory of

Pondicherry from National Bank for Agriculture and Rural Development

(NABARD).

140

� AT A GLANCE

Date of Establishment : 15-08 1907

Revenue : 1752.63 (USD in Millions)

Market Cap : 98632.215 (Rs. in Millions)

Corporate Address : 66 Rajaji Salai, Chennai-600001,

Tamil Nadu.

www.indianbank.in

Management Details

Chairperson & MD : T M Bhasin

Directors : A Ganesa Rathnam, A S Bhattacharya, A Subramanian, Bhattacharya, Ashok Gupta, C K Ranganathan, C. R. Gopalasundaram, G. Charath Chandran, Gundmi Sudhakar Rao, Kumar Sanjay Krishna, M Jayanath, M Jayanth, M S Sundara Rajan, Narendra Kumar Agarwal, Narendra Kumar Agrawal, Saria Khan, Shaktikanta Das, T M Bhasin, T T. Natarajan, V Rama Gopal

Business Operation : Bank – Public Financials : Total Income - Rs. 90307.775 Million

(Year ending Mar 2010)

Net Profit - Rs. 15549.871 Million

(Year ending Mar 2010)

Company Secretary : A Ganesa Rathnam

Bankers Auditors : PL Mittal & Co, Viswanathan & Swaminathan, o, Suri & Co, Kalyanasundaram & Co, Chandran & Raman

141

� REFERENCES

1. Kothari, C. R., “Research Methodology – Methods and Techniques”, New

Age International Publishers, New Delhi, Second Revised Edition, 2009,

pp. 132-136.

2. Annual reports of Selected Nationalized Banks (from 2001 to 2010)

3. www.bankofbaroda.com

4. www.bankofindia.com

5. www.pnbindia.com

6. www.canarabank.in

7. www.corpbank.com

8. www.denabank.com

9. www.indianbank.in/

10. www.centralbankofindia.co.in/

11. www.bankofmaharashtra.in

12. www.sbi.co.in