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Chapter 1 Profile of the Firm/Company

INTRODUCTION

What is a bank? Bank is defined as an institution for the keeping, landing and exchanging etc. of money. Economists have also defined a bank highlighting its various functions. According to Crowther, the banker business is to take the debt of other people to offer his own in exchange and thereby create money. Thus a bank is an institution that accepts deposits from the public in turn advances loans by creating credit. It is different from other financial institutions in that they cannot create credit though they may be accepting deposits and making advances. TYPES OF BANKS: Commercial banks: are those banks which perform all kinds of banking functional such as accepting deposits, advancing loan, cr.creation and agency functions. They are also called joint stock banks as they are organized in the same manner as joint stock companies. They usually advance short term loans to customers some of commercial banks in India are Andhra Bank, Canara Bank, Indian Bank, PNB etc. Exchange banks: are those banks, which deal in foreign exchange and specialize in financing trade. They are called foreign exchange banks. In India these exchange banks have their head offices located outside India. These banks also render other services such as collecting and supplying information about the foreign customers providing remittance facilities etc. such as chartered bank, Gridlays bank.

Industrial banks: are those banks, which provide medium term and long-term finance for industries for the purchase of land, machinery, etc. They underwrite the debenture and shares of industries and also subscribe to them such as industrial development bank of India, industrial finance corporation of India etc. Agricultural banks: are those banks, which provide cr. To farmers for short term, medium term and long term needs. In India, commercial banks, regional rural banks and agricultural co-operative banks provide short-term loans to farmers. Such as national bank for agriculture and rural development, NABARD. Cooperative banks: are those financial institutions, which are organized on the principle of cooperation. They provide short term, medium term loans to their members. In rural area there are agriculture cooperative banks, which are also cooperative banks, which perform the function of ordinary commercial banks but give loan to their members only. They also get funds from the RBI. There is a state cooperative bank in every state of India with its branches at the district level known as the central cooperative banks. Saving banks: help promote small saving and mobilize them. They have been very successful in Japan and Germany. In India post office act as saving bank. Central banks: is the apex bank, in a country, which controls its monetary, and banking structure. It is owned by the govt. of the country and operates in national interest. It regulates and issues currency, performs banking and a agency services for the state, keeps cash reserves of commercial banks, keeps and manages international

currency, act as the lender of the last resort, acts as the clearing house and controls of credit. The RBI is the central bank in India. Banking System

The Banking system is an integral Sub system of the financial system. It represents an important channel of connecting small savings from the households and lending it to the corporate sector.

The Indian Banking system has the Reserve Bank of India (RBI) as the apex body for all matters relating to the banking system. It is the Central Bank of India. It is the banker to all other banks.

Functions of RBI:

1. Currency issuing authority. 2. Banker to the Government 3. Banker to other banks 4. Framing of monetary policy 5. Exchange control 6. Custodian of foreign exchange and gold reserves 7. Development activities 8. Research and Development in the banking sector.

Following is the classification of banks:

1. Non scheduled Banks: These are banks which are not included in the second schedule of the Banking Regulation Act, 196. It means they do not satisfy the conditions laid down by that schedule. They are further classified as follows: Central Co-operative Banks & Primary Credit Societies. Commercial Banks

2. Scheduled Banks: Scheduled Banks are banks which are included in the second schedule of the Banking Regulation Act, 1965. According to this schedule a scheduled bank. Must have paid up capital reserve of not less than Rs. 5,00,000/Must also satisfy the RBI that its affairs are not conducted in a manner detrimental to the interest of its depositors. Scheduled banks are sub divided as:

1. State co-operative Banks: These are co-operative owned and managed by the state.

2. Commercial banks: These are business entities whose main business is accepting deposits and extending loans. Their main objective is profit maximization and adding shareholder value. 5

Banking system in India The banking system is an integral sub-system of the financial system. It represents an important channel of collecting small saving from the households and lending it to the corporate sector. The Indian banking system has the RBI as the apex body for all matters relating to the banking system. It is the central bank of India. It is the bankers to all other banks. Functions of RBI: 1. Currency issuing authority. 2. Banker to the government. 3. Banker to other banks. 4. Framing of monetary policy. 5. Exchange control. 6. Custodian to foreign exchange and gold reserves. 7. Development activities. 8. Research and development in the banking sector. Banking Industry in India has always revolved around the traditional function of deposits and credit. Their role had been defined as to assist the overall economic growth with majority of share being controlled by the Government of India in most of the banks. But with the process of liberalization, and the technological revolution the banking industry has also undergone tremendous change in the last 5 years. The market, which was largely controlled by the public sector banks, has now been facing stiff 6

competition not only from foreign players but also from the new generation private sector banks. The rules of the game have been changing with the RBI introducing new norms to make banks more accountable and to adopt the practices followed worldwide. Most of the banks have now been trying to function on the concept of a Universal Bank. Apart from the traditional functions of a commercial bank, they are taking steps to build themselves into a one stop financial centre wherein all the financial products would be available. Banks have started catering to the retail segment to improve their deposit portfolio. In order to have a maximum share in this segment, most of the banks have been introducing new products. The delivery channels have also been shifted from branches to ATMs, phone banking, net banking etc.
Banks traditionally involved in working capital financing have started offering consumer loans and housing loans. Some of the banks have started offering travel loans as well. Retail financing is the other area where the banks have started to concentrate. The loan formalities too have been relaxed to a great extent and sanctioning time has been speeded up Structure of Indian Banking Industry.

STRUCTURE OF THE BANKING INDUSTRY


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Figure1

Bank of Maharashtra

Type

Public BSE & NSE:MAHABANK}

Industry

Banking Capital Markets and allied industries

Founded Headquarters

1935 Bank of Maharashtra,Lokmangal,Shivajinagar Pune, India

Key people Products Revenue Total assets Website

SHRI A.S. BHATTACHARYA , Chairman Loans, Credit Cards, Savings, Investment vehicles etc. 6,093.94 crore (US$1.36 billion) Rs. 481 bn www.bankofmaharashtra.in Figure 2

Company Profile

Bank of Maharashtra is a public sector bank. It operates in five segments. Treasury segment includes investment, balances with banks outside India, interest accrued on investments and related income therefrom. Corporate/ Whole sale Banking Segments include all advances to trusts, partnership firms, companies and statutory bodies which are not included in Retail Banking Segments. Retail Banking Segments include exposure to the individual person/ persons or to a small business. Other Banking Operations segment includes all other banking transaction. During the fiscal year ended March 31, 2011 (fiscal 2011), the Bank opened 83 new branches. As of March 31, 2011, the total branch network consisted of 1,536 branches. The branch network includes specialized branches of foreign exchange, government business, treasury and international banking, industrial finance, hi-tech agriculture, pension payment, pension processing, retail credit, self help group and asset recovery.

Renowned for promoting small businesses, Bank of Maharashtra is known as common man's bank. Working on the motto of Technology with Personal Touch, Bank of Maharashtra is catering to a large number of people across all strata of society. The Bank of Maharashtra has incorporated the latest technology to provide best services to its customers. This public sector bank with largest network in Maharashtra Hopes to reduce net NPA level to below 1% .

Head Office / Central Office:

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Address:

Bank of Maharashtra Central Office, 'Lokmangal', 1501, Shivajinagar Pune-411005 020 - 25532731, 733, 734, 735, 736 020 - 25532728 020 - 25514501 - 12 020 - 25513781

Telephone Numbers :

Branches of Bank of Maharashtra in Delhi: Branch Name Baprola Delhi Dayanand Vihar Asaf Ali Road Chandani Chowk Connaught Place 110001 B-9/10, Main Road, Commercial Complex, Dr Mukherjee Dr Mukherjee Nagar Nagar, Delhi East Patel Nagar Greater Kailash Janak Puri Karol Bagh Preet Vihar 110092 Delhi Service Branch Delhi UPSC Dwarka New Delhi 11 6/44 W E A, Ajmal Khan Road, Karol Bagh, Delhi 110005 Dholpur House, Shahajahan Road, UPSC, Delhi 110011 Antariksha Plaza, Plot No. 2, Sector 10, MLU Dwarka, 828/6, East Patel Nagar, Delhi 110005 M-16, Greater Kailash II, K Block Market, Delhi 110048 22-23, Institutional Area, D- Block Janak Puri, Delhi 5/36, W E A, Karol Bagh, New Delhi 110005 F-12, Dashmesh Niwas, Vikas Marg, Preet Vihar, Delhi 12, Dayanand Vihar, New Delhi -110092 Horchest House, 3/1 Asaf Ali Road , New Delhi 110001 1899, Ist Floor, Chandani Chowk, Delhi 110006 Maharashtra Bank Building, B-29, Connaught Place Delhi Address Opp Talab Village, Baprola, Nangloi, Najafgarh Road, New

Paschim Vihar Pushpanjali Enclave

10/401, Sunder Vihar, Paschim Vihar, Delhi 110087 A-26, Pushpanjali Enclave, Pitampura, New Delhi 110034 Garg Trade Center, Community Center, Sector II, Rohini,

Rohini, Delhi Delhi 110085 Figure 3

History of the organisation


The Beginning Maharashtra has a long history of commercial activity since ages because of its strategic Outbreak of the First World War leading to great depression took a heavy toll on banks in India. Between 1914 and 1935 as many as 380 banks failed in the country out of which 54 were based in Bombay province. The impact of these failures Maharashtra has been a progressive region and the Banking activity was also started in this region quite early. Historically speaking, the Bank of Bombay established in 1840 was the first Commercial Bank in Maharashtra. However, the first commercial bank set up in Maharashtra outside Mumbai was The Poona Bank established The effects of great depression started fading and new enterprises began emerging with new hopes in all spheres of economy, including was felt more in Maharashtra region because certain banks known for a long time were also closed down.

location in Indian sub continent and its large natural resources.

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in 1889 at Pune followed by The Deccan Bank in 1890 and the Bombay Banking Company in 1898.

banking.

Need felt for an Independent Bank for Maharashtra The Mahratta Chamber of Commerce (MCC) was established in Poona in 1934 and its Founder Secretary Shri A.R.Bhat was a great visionary. The Swadeshi movement of the first decade of the 20th Century gave stimulus to the

establishment of a number of commercial banks under Indian Management in Maharashtra.

Shri Bhat initiated for a comprehensive review of banking services available in the region through the special issue of Kesari news paper released in memory of Lokmanya Tilak within a few months of establishment of MCC. He ensured that his friend, Shri V. P.Varde, considered as a doyen of co-operative movement, wrote an article on the necessity of a separate bank for Maharashtra, thus launching a public discussion on the subject. While there was no noticeable response to the article of Shri Varde, Shri A R Bhat kept on discussing the subject with leaders in Trade and Industry. The first meeting of the committee was held on 19 May 1935 in the conference room of the Kesari Mahratta office and besides the The MCC formed a sub-committee consisting of Sarvashri V.G.Kale, D.K.Sathe, N.G.Pawar,

G.D.Apte and A.R.Bhat to work out the details.

committee members, prominent personalities from the City like Shri Babasaheb Kamat, the then President of the MCCI, J S.Karandikar, Rajabhau Godbole, Govindrao Pandit, Damuanna Potdar, S.R.Sardesai, Baburao Gokhale, and

N.N. Kshirsagar among others participated in Shri Bhat ensured that Mahratta Chamber and its Directors took up the issue and held a Conference on Business and Industry in Poona on behalf of the MCC in February1935. Another meeting of the sub committee with wider public representation was followed on 27 May 1935 in the meeting hall of Kesari Mahratta Shri Bhat pushed the proposal for formation of a bank and succeeded in getting the following resolution adopted by the conference: office and decisions on matters like the number of Directors on the Board of the proposed bank (maximum to be 11 members), Amount of each share (to be Rs.50/-) and primary condition for deliberations.

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"For providing capital to the trade and industry in Maharashtra, it is essential to establish a Joint Stock commercial bank. The Mahratta to in Chamber make that all is, the therefore, necessary and take

becoming a Director (to hold a minimum of 500 shares) were taken.

requested enquiries

behalf

appropriate steps for floating such a bank. The business community in Maharashtra is urged to support such an effort. "

The Bank was formally registered under the Indian Companies Act, on the auspicious day of 16 September 1935.

The Memorandum and Articles of the Bank were signed by following 19 promoters (Sarvashri)

Board of Directors 1. Prof.V G Kale 2. D K Sathe 3. B M Gupte 4. N. G. Pawar 5. V T Ranade 6. V P Varde 7. M R Joshi

Others 1. A R Bhat 2. S M Joshi 3. B S Kamat 4. S R Rajguru 5. R N Abhyankar 6. T V Sane 7. D G Bapat 14

8. S G Marathe 9. Raghunathrao Sohoni 10. D V Potdar

8. G S Marathe 9. D D Chitale

Witness Signatory: Shri G D Apte

The first Board of Directors of The Bank of Maharashtra Ltd was constituted with following members. 1. Prof.V G Kale, an ex-member of Indian Tariff Board and a reputed economist and educationist of old generation. 2. Shri D K Sathe, a businessman and a prominent social worker and had experience of Cooperative banking. 3. 4. 5. 6. Shri B M Gupte, Chairman of the Poona Central Co-operative Bank. Shri N. G. Pawar, Engineer and Contractor Shri V T Ranade, of M/s.V R Ranade and Sons a leading firm of Engineers and Contractors Shri V P Varde, a leading figure in the co-operative movement and who provided major impetus to the move. 7. 8. Shri M R Joshi, a leading paper merchant from Pune. Shri S G alias Annasaheb Marathe of M/s.V R Ranade and Sons.

9.

Shri Raghunathrao Sohoni, a leading merchant who had initially moved the resolution of formation of the Bank for Maharashtra.

Figure 4 15

Bank of Maharashtra was registered on 16th September 1935 and commenced operations on February 1936 in Pune. It was in 1944, when BOM obtained the status of schedule bank in which RBI gives the status of schedule bank to those whose paid capital and collected funds of bank are not less than Rs. 5 lac and banks activity should not adversely affect the interests of depositors. Every schedule bank enjoys the eligibility for debts/loans on bank rate from the RBI and acquires the membership of clearing house.

Some of the milestones for bank are:


1996: BOM obtained autonomy and moved into A category from the earlier

C category.
2000: Deposits crossed Rs 10,000 crore marks. 2004: Initial public offer (IPO) launched and public owned 24% share of BOM. 2005: Bank diversified its business with launch of Bancassurance (an insurance)

& mutual fund distribution.


2006: Total business crossed Rs 50, 000 crore and implementation of core

banking Solution (CBS) in branch started.


2010: completion of CBS project with all branch covered under CBS. Same

time total business crossed Rs one lakh crore.

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Outlook of Bank of Maharashtra


1. Business:BOM registered a year on year growth of 19.71 % and hence total business stood at Rs 1, 04,230 crore from Rs 87, 072 crore which was on 31st march 2009. 2. Deposits:Total deposits increased from Rs 52,255 crore to Rs 63,304 in 2010 a rise by 21.14 %.The share of CASA( current account and saving account) share was 36.91 %. This deposits are considered low cost deposits as for current account bank pay no interest and for saving its very minimal compared to fixed deposits, where avg. interest is more than 6-7%. 3. Advances:There is a rise of 17.55 % in gross advances. It increased to Rs 40, 926 crore in 2010 against Rs 34,817 an increased by Rs 6, 109 crore in 2009-10 FY. 4. Sectorial Deployment of credit:The bank has maintain a diversified credit

portfolio and adhered to guideline of RBI for credit deployment to priority sectors. Below table gives the glimpse of BOM deployment of credit to different sector and contribution of each sector in over all credit deployed as on 31st march 2010. Sr. No. 1. Industry i. Infrastructure Credit deployed 31.03.2010 Outstanding (Rs in crore) 13, 655.60 7308.48 % to total credit outstanding 33.37 17.86 1.39

ii. Chemicals, dyes, paints 566.86 etc

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iii. Petroleum iv. Iron & steel v. Textiles vi. Engineering vii. Other Industries 2. 3. Agriculture

683.74 170.62 823.63 3353.64 748.61 6249.98

1.67 0.42 2.01 8.19 1.83 15.27 9.94

Micro, small and medium 4069.41 enterprise (MSME)

4. 5. 6. 7. 8. 9.

Other priority sectors Retail sector Housing Education Exports Commercial real estate Table 1

4282.64 4942.37 3627.27 430.02 1088.32 1122.51

10.46 12.08 8.86 1.05 2.66 2.74

5. Asset performance: Non performing assets (NPA) recovery has improved in 2010 with Rs 254.27 crore compared to Rs 210.53 crore in 2009 which is rise in 21% in total cash collection in 18

respect of NPAs. This has been possible due to intensive follow up with defaulting borrowers for recovery of dues. 6. Investments: Bank has net investment of Rs 21, 324 crore in FY 2009-10 compared to Rs 18, 382 in FY 2008-09, an increase of 16%. BOM received net interest of Rs 1, 297.90 crore in FY 2009-10 compared to Rs 989.84 crore during last financial year. 77.94 % of the investment portfolio was held under Held to Maturity (HTM) category, 22.05 % in Available for sales

7. Borrowings:Total borrowing of bank as on 31th march 2010 is Rs 129.45 crore

which include Rs 61.47 availed from NABARD and SIDBI for refinancing. Total borrowings were Rs 190.01 crore as on 31st march 2009.

8. Income for Bank of Maharashtra:

Non interest income: bank posted Rs 591.24 crore as non-interest income during 2009-10 an increase of 18.24 % from previous year. Bank has focused to earn non-interest income by looking into new avenues such as mutual fund distribution, insurance acting as corporate agent for LIC & united insurance and from government business. Bank has introduces online share trading to boost its non-interest income.

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Merchant Banking: During FY 2009-10, bank handled 69 issues of commercial paper amounting to Rs 12, 120.10 crore for its clients as an issuing agent and hence earned an income of Rs 28.02 lakh as commission.

Bancassurance business: Bancassurance business consist of selling of life insurance policy for L.I.C , non-life insurance policy for United insurance and distribution of mutual fund products on behalf of The income earned under bancassurance in FY 2009-10 is Rs. 4.48 crore.

S. N. 1. 2. 3. Table 2

Nature of Income For selling life insurance policies For selling non-life insurance policies For selling mutual fund products

Amount (RS. In crore) 2.31 2.02 0.15

9. Branch Network and expansion: Sr. No. Classification 1. 2. 3. 4. Rural Semi-urban Urban metropolitan Total Table 3 During financial year 2009-10, Bank of Maharashtra has opened 33 new branches and hence total branch increased to 1453. Bank has specialized branches for foreign 20 As on 31st march 2009 520 262 271 368 1421 As on 31st march 2010 526 266 281 380 1453

exchange, government business, treasury & international banking, MSME and industrial finance etc. The bank has licence for opening 79 new branches including 7 branches in North-East states.

10. Some Key indicators: Particulars Profit per branch (Rs in lakh) Profit per employee (Rs in lakh) Business per branch (Rs in crore) Business per employee (Rs in crore) Interest income as % to average working funds Non-interest income as % to average working funds Interest spread as % to average working funds Operating profit as % to average working funds Staff expenses to average working funds Table 4 2008-09 2009-10 26.40 2.75 61.28 6.39 8.29 0.97 2.43 1.53 1.12 30.25 3.21 71.73 7.62 7.50 0.94 2.05 1.29 1.04

11. Capital Items i) CRAR % 11.33 12.78 10.75 12.05 As on 31.03.2010 As on 31.03.2009

Basel - I Basel - II

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ii)

CRAR- Tier I Capital % 5.68 6.41 5.45 6.11

Basel - I Basel - II iii) CRAR- Tier II Capital %

Basel - I Basel - II iv) Percentage of the shareholding of the Government of India Table 5

5.65 6.37 76.77

5.30 5.94 76.77

12. Performance of Bank of Maharashtra: Parameters Operating profit Net profit Deposits Advances Total Business Table 6 March-2009 593.71 361.71 52, 254.92 34,290.77 86545.69 March-2010 608.74 439.48 63, 304.07 40,314.70 103618.77 CAGR % 2.51 % 21.5 % 21.14% 17.57%

Board of Directors
Shri Anup Sankar Bhattacharya( Chairman and Managing Director) 22

Shri M.G Sanghvi( Executive Director) Shri. V. P. Bhardwaj Ms. Kamala Rajan Shri. A. K. Pandit Dr. D. S. Patel Dr. S. U. Deshpande Shri. S. D. Dhanak Dr. Naresh Kumar Shri. Ramesh C. Agrawal

MISSION AND VISION

Vision of the organization: To be a vibrant, forward looking, techno-savvy, customer centric bank serving diverse sections of the society, enhancing share holders' and employees value while moving towards global presence.

Mission of the organization: To ensure quick and efficient response to customer expectations. To innovate products and services to cater to diverse sections of society.

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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. 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.

The autonomy: The Bank attained autonomous status in 1998. It helps in giving more and more services with simplified procedures without intervention of Government.

Social aspect: 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.

Other attributes: 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. 24

Company snapshot: Key Ratios


Mar-11 P/E (x) P/BV (x) RONW (%) ROCE (%) EV/ EVBIDTA (x) Dividend Yield (%) APATM(%) EPS 10.22 0.97 11.3 0.0 16.97 4.1 0.0 5.8 Mar-10 5.03 0.89 19.7 0.0 15.07 4.1 0.0 9.9 Mar-09 2.45 0.43 19.6 0.0 14.16 4.1 0.0 8.5

Figure 5 Shareholding Pattern


No. of Particulars Shares(Mn)
Total Promoter Holdings Total Govt Holding (Promoter + Non Promoter) Total Domestic Institutions (Banks/ FI + MF / UTI) Total Foreign Holdings (FII+NRI holdings) Total Non Promoter Corporate Holdings Total Public & Others (Individuals + HUF + Clearing members) Total

% Holdings 79.2 0.0 8.8 1.2 1.5 9.3 100

381.71 0.00 42.22 5.72 7.05 45.02 481.71

Figure 6

Range of products and services:


Personal Loans Car Loans Two Wheeler Loans Commercial Vehicle Loans Loans Against Securities 25

Farm Equipment Loans Construction Equipment Loans Office Equipment Loans Medical Equipment Loans Home loan

Bank of Maharashtra Internet Banking


The Internet Banking service provided by Bank of Maharashtra is referred to as Mahaconnect by the bank. Bank of Maharashtra provides 24 hours access to banking services and financial transactions to the customers who can enjoy these facilities from the comfort of their home. Mahaconnect has become widely popular among Bank of Maharashtra customers as it provides great flexibility for carrying out banking transactions. Mahaconnect has gradually transformed from nice to have feature to need to have feature for the customers.Mahaconnect is made for all the customers of CBS branches of Bank of Maharashtra. Thus, customer only needs an active internet connection along with PC with minimum PII processor, 32 MB RAM, any browser such as Internet Explorer 5.0 or above for availing the net banking facility.

Mahaconnect Online banking features:


Bank of Maharashtra internet banking or Mahaconnect offers wide array of services to the customers including most commonly accessed banking features. It has made the life easier for the customers by offering stress free banking transactions from their home. Some of the salient features offered by Bank of Maharashtra online banking are as follows:

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Checking account balance and see previous transactions Online Transferring of funds between accounts Check and Print Bank statements for past few months Online payment of taxes Online Monitoring of accounts activity Update personal profile like address and phone number Check the status of the cheques online Request for new cheques online

Apply for Mahaconnect (Internet Banking):


In order to apply for Mahaconnect Online Banking, customers can visit the site at http://www.bankofmaharashtra.in and download the application form for Online Banking. The form can also be obtained from the branch. After completing the application form, it can be submitted to any nearest branch of the bank. On successful processing of the application, customer will receive User Id, Login Password and Transaction password. Customer can login to net banking site of Mahaconnect using the UserID and login password. Once logged in customer can avail many online banking services offered by Bank and perform various financial transactions. The User Id & Passwords for login to the Mahaconnect will be sent to the registered address of customer with the Bank. Customer should ensure that his current address is

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updated in the Banks record. It is suggested that new customers should completely read the general information page so that they will get the idea of using the various banking services online. It is very easy to conduct all the banking transactions online. It is useful for those who are unfamiliar with online banking service.

Mahaconnect Security Features:


The Mahaconnect or online internet banking service of Bank of Maharashtra is highly secure and provides hassle free and secure financial transactions. The high level of security measures ensure that the customers account information and online transactions are well protected. It employs 128-bit encryption codes for encryption of data so that no one else can view or decipher the online transactions. The presence of firewalls provides security against any unauthenticated programs. These data security measures and encryption standards of Bank of Maharashtra are of international standards.

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Chapter 2 SWOT Analysis of the Company

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S.W.O.T. ANALYSIS OF BANK OF MAHARASHTRA

STRENGTHS: a) Promoters are experienced and qualified professionals. b) Market driven organization c) Diversified customer base d) Limited exposure per client to ensure low risk e) Low cost of operation f) Low NPA-level g) High margin of profit h.) Public sector undertaking. Thus, has govt. backing i.) In this area for more than 75 years. Thus, expertise in this field j.) Very high investments in SLR securities k.)High connectivity to common man in some parts of the country l.)Over 1500 branches in 23 states and 2 union territories

WEAKNESSES: a) Primary securities are not tangible 30

b) Different to verify the primary security c) Business activity is in sensitive sector d) Risk averse e) Low profitability f) Increasing NPAs

OPPORTUNITIES: a) Big and diverse market size b) RuralArea c) Increasing Non-SLR investments to increase profits d) Making their credit cards profitable

THREATS: a) Multinationals, banks and big finance companies are eying on the same market segment. b) Government policy and adhoc fiscal policy changes. c) Competitors d) New bank licenses e) Dis-investments by the government

Major Competitors: 1. Bank of India 2. Bank of Madurai

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3. Canara Bank

Chapter 3 Analysis of Financial Reports of the Company

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ANALYSIS OF FINANCIAL REPORTS OF THE COMPANY Balance sheet of Bank of Maharashtra

Currency in Millions of Indian Rupees

As of:

Mar 31 2008
Restated INR

Mar 31 2009
INR

Mar 31 2010
Reclassified INR

Mar 31 2011
INR

Assets Cash and Equivalents TOTAL CASH AND SHORT TERM INVESTMENTS Restricted Cash Other Current Assets TOTAL CURRENT ASSETS Gross Property Plant and Equipment Accumulated Depreciation NET PROPERTY PLANT AND EQUIPMENT Goodwill Deferred Tax Assets, Long Term 6,755.5 7,904.4 35,505.9 2,191.0 48,266.2 6,699.5 -4,494.9 2,204.6 72.9 2,745.2 5,489.6 7,865.4 35,563.8 2,046.3 49,700.1 11,694.2 -5,145.9 6,548.4 312.7 3,042.9 17,692.7 22,416.5 49,252.9 4,411.3 80,933.5 12,487.8 -5,892.3 6,595.5 312.1 2,781.4 6,282.7 13,820.3 34,210.9 4,670.4 57,137.3 13,198.7 -6,530.6 6,668.1 223.6 4,044.5

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Other Long-Term Assets TOTAL ASSETS

13,758.8 481,578.3

6,659.7 590,385.5

8,587.0 710,639.7

10,394.3 764,548.3

LIABILITIES & EQUITY Accrued Expenses Current Income Taxes Payable Other Current Liabilities, Total TOTAL CURRENT LIABILITIES Long-Term Debt Deferred Tax Liability Non-Current Other Non-Current Liabilities TOTAL LIABILITIES TOTAL PREFERRED EQUITY Common Stock Additional Paid in Capital Retained Earnings Comprehensive Income and Other TOTAL COMMON EQUITY TOTAL EQUITY TOTAL LIABILITIES AND EQUITY 2,199.7 1.4 8,836.5 428,565.7 23,667.5 0.0 11,456.4 463,689.6 -4,305.2 1,300.0 11,903.9 379.6 17,888.7 17,888.7 481,578.3 1,765.4 1.7 5,077.9 529,343.7 22,575.1 -13,205.6 565,124.5 -4,305.2 1,300.0 14,255.6 5,400.1 25,261.0 25,261.0 590,385.5 491.9 -5,156.0 638,597.5 27,969.5 -15,399.0 681,966.1 -4,305.2 1,300.0 17,386.7 5,681.7 28,673.6 28,673.6 710,639.7 600.4 -4,409.7 673,399.1 30,765.6 -20,540.8 724,705.5 5,880.0 4,817.1 4,308.1 19,235.8 5,601.8 33,962.8 39,842.8 764,548.3

Figure 7

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Profit & Loss account of Bank of Maharashtra

Currency in Millions of Indian Rupees

As of: Mar 31 2008


Restated INR

Mar 31 2009

Mar 31 2010

Mar 31 2011
INR

INR Reclassified INR

TOTAL REVENUES Cost of Goods Sold GROSS PROFIT Selling General & Admin Expenses, Total EBT, EXCLUDING UNUSUAL ITEMS EBT, INCLUDING UNUSUAL ITEMS Earnings from Continuing Operations NET INCOME NET INCOME TO COMMON INCLUDING EXTRA ITEMS NET INCOME TO COMMON EXCLUDING EXTRA ITEMS

11,668.0 188.6 11,479.4 7,207.5 3,298.5 3,298.5 3,298.5 3,298.5 3,298.5 3,298.5

13,407.3 168.9 13,238.4 8,564.0 3,767.1 3,767.1 3,767.1 3,767.1 3,767.1 3,767.1

15,134.7 19,801.9 ---

15,134.7 19,801.9 9,647.4 14,948.9 4,396.7 4,396.7 4,396.7 4,396.7 4,396.7 4,396.7 3,348.0 3,348.0 3,348.0 3,348.0 3,003.0 3,003.0

Figure 8

35

Cash Flow of Bank of Maharashtra


Figure 9
Currency in Millions of Indian Rupees

As of:

Mar 31 2008
Restated INR

Mar 31 2009
INR

Mar 31 2010
Reclassified INR

Mar 31 2011
INR

NET INCOME Depreciation & Amortization DEPRECIATION & AMORTIZATION, TOTAL Other Operating Activities Change in Other Working Capital CASH FROM OPERATIONS Capital Expenditure CASH FROM INVESTING Long-Term Debt Issued TOTAL DEBT ISSUED Long Term Debt Repaid TOTAL DEBT REPAID Issuance of Common Stock Common Dividends Paid Common and/or Preferred Dividends Paid TOTAL DIVIDEND PAID Other Financing Activities CASH FROM FINANCING NET CHANGE IN CASH

3,298.5 687.9 687.9 2,940.3 -78,044.8 -71,118.0 -977.6 -977.6 5,250.0 5,250.0 ----1,007.4 --1,007.4 -1,685.9 80,926.9 8,831.3

3,767.1 757.7 757.7 3,880.8 -109,915.5 -101,509.9 -754.9 -754.9 ---1,000.0 -1,000.0 --1,007.4 --1,007.4 -1,906.6 101,056.7 -1,208.1

4,396.7 751.0 751.0 2,795.8

3,348.0 678.6 678.6 5,242.6

-95,027.9 -74,688.4 -87,084.5 -65,419.2 -647.7 -647.7 6,000.0 6,000.0 ----755.5 --755.5 -2,070.8 113,624.5 -861.1 -861.1 ---1,675.0 -1,675.0 3,520.0 --1,007.3 -1,007.3 -2,328.7 39,828.3

25,892.2 -26,452.0

Capital Structure (Bank of Maharashtra)


36

Capital Structure (Bank of Maharashtra) Period From To 2010 2011 2009 2010 2008 2009 2007 2008 2006 2007 2005 2006 2004 2005 2003 2004 2002 2003 1999 2000 Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Instrument Authorized Capital
(Rs. cr)

Issued Capital
(Rs. cr)

-PAIDUPShares (nos) 481712553 430520000 430520000 430520000 430520000 430520000 430520000 430520000 330520000 330520 Face Value 10 10 10 10 10 10 10 10 10 10 Capital 481.71 430.52 430.52 430.52 430.52 430.52 430.52 430.52 330.52 0.33

3000 3000 1500 1500 1500 1500 1500 1500 1500 0.33

481.71 430.52 430.52 430.52 430.52 430.52 430.52 430.52 330.52 0.33

Figure 10

Key Financial Ratios of Bank of Maharashtra

Mar ' 11

Mar ' 10

Mar ' 09

Mar ' 08

Mar ' 07

Per share ratios


Adjusted EPS (Rs) Adjusted cash EPS (Rs) Reported EPS (Rs) Reported cash EPS (Rs) Dividend per share Operating profit per share (Rs) Book value (excl rev res) per share (Rs) Book value (incl rev res) per share (Rs.) Net operating income per share (Rs) 3.07 4.48 6.24 7.65 2.00 9.50 61.02 70.23 123.95 10.21 11.95 10.21 11.95 2.00 14.14 55.84 66.39 123.03 8.40 10.16 8.71 10.47 1.50 13.79 47.97 58.47 109.24 7.57 9.16 7.63 9.23 2.00 13.04 41.01 41.38 86.57 5.30 6.55 6.31 7.56 2.00 7.55 39.85 40.46 64.66

37

Mar ' 11 Free reserves per share (Rs) 32.23

Mar ' 10 27.08

Mar ' 09 22.71

Mar ' 08 19.74

Mar ' 07 20.99

Profitability ratios
Operating margin (%) Gross profit margin (%) Net profit margin (%) Adjusted cash margin (%) Adjusted return on net worth (%) Reported return on net worth (%) Return on long term funds (%) 7.66 6.52 5.42 4.02 5.02 10.23 112.14 11.49 10.07 8.16 9.56 18.28 18.28 166.73 12.62 11.01 7.88 9.19 17.51 18.16 171.63 15.06 13.21 8.65 10.39 18.44 18.60 160.40 11.68 9.74 9.36 9.71 13.30 15.84 114.45

Leverage ratios
Long term debt / Equity Total debt/equity Owners fund as % of total source Fixed assets turnover ratio 0.20 22.94 4.17 4.52 26.33 3.65 4.24 25.31 3.80 4.02 23.65 4.05 5.56 19.77 4.81 4.87

Liquidity ratios
Current ratio Current ratio (inc. st loans) Quick ratio Inventory turnover ratio 0.92 0.03 20.82 0.98 0.03 22.75 0.39 0.02 9.78 0.48 0.04 8.00 0.39 0.03 8.40 -

Payout ratios
Dividend payout ratio (net profit) Dividend payout ratio (cash profit) Earning retention ratio Cash earnings retention ratio 38.98 31.80 20.64 45.62 22.91 19.57 77.08 80.43 20.13 16.75 79.12 82.73 30.67 25.36 69.08 74.47 37.05 30.93 55.88 64.29

Coverage ratios
Adjusted cash flow time total debt Financial charges coverage ratio Fin. charges cov.ratio (post tax) 272.62 0.16 1.11 123.02 1.20 1.15 119.45 1.21 1.15 105.86 1.27 1.17 120.24 1.27 1.20

Component ratios
Material cost component (% earnings) Selling cost Component Exports as percent of total sales Import comp. in raw mat. consumed 0.31 0.26 0.37 0.48 0.30 -

38

Mar ' 11 Long term assets / total Assets Bonus component in equity capital (%) 0.90 -

Mar ' 10 0.91 -

Mar ' 09 0.92 -

Mar ' 08 0.85 -

Mar ' 07 0.90 -

Figure 11

39

Chapter 4 Lessons Learnt

WORKING The main working methodology was to understand the banking functions provided by the Bank of Maharashtra to its valuable customers. To understand more on the banking 40

functions I used to attend the clients coming to the bank daily and trying to know about the services they need and queries they have. Then I used to direct to the respective service managers who can help them and standing with hem and understanding how they are doing the work. Then I used to work with different service managers and was given a task to understand the working of the different services being provided to the customers. 1. I was given a project on KYCs. In this project I was given a data of around 30 priority customers had to interact with the customers and tell them about the KYCs and telling them to get their KYC documents updated. Then I used to maintain the data of all the customers whom I have interacted with.

2. The next project which I was given was the electronic services. In this I was given a task to get at least 10 forms filled by the walk INS clients on the daily bases. And at the end of the day I used to give the forms to the respected service managers to send it for the scheduling.

KYCS .KYC is the most important and the first and the fir most part of the banking sector. Without the KYC the banking cannot be carried on. It has been made mandatory by the RBI that every customer has to get its kyc documents updated within a period of two years as a proof. Now to understand further that what actually is the KYCS.

WHAT IS KYCS? Know Your Customer - KYC enables banks to know/ understand their customers and their financial dealings to be able to serve them better and manage its risks prudently. WHY KYC IS NECESSARY: 41

To establish the identity of the client : This means identifying the customer and verifying his/ her identity by using reliable, independent source documents, data or information. For individuals, bank will obtain identification data to verify the identity of the customer, his address/ location and also his recent photograph. This will be done for the joint holders and mandate holders as well. For non-individuals, bank will obtain identification data to: verify the legal status of the legal person/ entity verify identity of the authorized signatories and verify identity of the Beneficial owners/ controllers of the account

To ensure that sufficient information is obtained on the nature of employment/ business that the customer does / expects to undertake and the purpose of the account. KYC requirements have always been in place and Banks have been taking KYC documents in accordance with the guidelines issued by RBI from time to time. RBI has revisited the KYC guidelines in the context of recommendations made by the Financial Action Task Force (FATF) on Anti Money Laundering standards and on Combating Financing of Terrorism and enhanced the KYC standards in line with international benchmarks.

'Know Your Customer' (KYC) Standards 1. The objective of KYC guidelines is to prevent banks from being used, intentionally or unintentionally, by criminal elements for money laundering activities. KYC 42

procedures also enable banks to know/understand their customers and their financial dealings better which in turn help them manage their risks prudently. Banks should frame their KYC policies incorporating the following four key elements: i. ii. iii. iv. Customer Acceptance Policy; Customer Identification Procedures; Monitoring of Transactions; and Risk management.

For the purpose of KYC policy, a Customer may be defined as :

a person or entity that maintains an account and/or has a business relationship with the bank;

one on whose behalf the account is maintained (i.e. the beneficial owner); beneficiaries of transactions conducted by professional intermediaries, such as Stock Brokers, Chartered Accountants, Solicitors etc. as permitted under the law, and

Any person or entity connected with a financial transaction, which can pose significant reputational or other risks to the bank, say, a wire transfer or issue of a high value demand draft as a single transaction.

KYC is a regulatory and legal requirement. Regulatory: In terms of the guidelines issued by the Reserve Bank of India (RBI) on 29th November 2004 on Know Your Customer, all banks are required to put in place a comprehensive policy framework covering KYC Standards and AML Measures. 43

Legal: The Prevention of Money Laundering Act, 2002 (PMLA) which came into force from 1st July, 2005 (after rules under the Act were formulated and published in the Official Gazette) also requires Banks, Financial Institutions and Intermediaries to ensure that they follow certain minimum standards of KYC and AML as laid down in the Act and the rules framed there under When does KYC apply: KYC will be carried out at the following stages: Opening a new account Opening a subsequent account where documents as per current KYC standards not been submitted while opening the initial account Opening a Locker Facility where these documents are not available with the bank for all the Locker facility holders When the bank feels it necessary to obtain additional information from existing customers based on conduct of the account When there are changes to signatories, mandate holders, beneficial owners etc KYC will also be carried out in respect of non-account holders approaching the bank for high value one-off transactions.

If the proper kyc documents are not provided to the bank:

44

The Bank will be entitled to refuse to open the account (if you are a prospective customer) or discontinue its relationship with you citing non-providing of KYC information / documents (if you are An existing customer. However, for certain categories of customers who are not able to provide the necessary documents, the Bank will open the account as per the flexibility provided vide RBI DBOD circular no. AML.BC.28/14.01.001/2005-06 dated 23rd August, 2005.

Customer Identification Procedure: In line with the RBI mandate, the following features need to be verified and the relevant documents must be obtained from customers:

Features Accounts of individuals

Documents (i) Passport (ii) PAN card (iii) Voters Identity Card (iv) Driving license (v) Ration Card (vi) Identity card

Legal name and any other 45

(subject to the banks satisfaction) names used (i) Utility bill (ii) Bank account statement received by

Correct address

permanent mail / courier along with signature verification by the Banker or a cheque drawn on that account for a minimum amount as specified by the Bank, deposited into the account (iii) Ration card (iv) Letter from employer (subject to satisfaction of the bank)

Accounts of individuals

(i) Passport (ii) PAN card (iii) Voters Identity Card (iv) Driving license (v) Ration Card (vi) Identity card (subject to

Legal name and any the banks satisfaction) other names used (i) Utility bill (ii) Bank account statement received by mail /

Correct address

permanent courier along with signature verification by the Banker or a cheque drawn on that account for a minimum amount as specified by the Bank, deposited into the account (iii) Ration card (iv) Letter from employer (subject to satisfaction of the bank)

Accounts of companies Certificate of incorporation and Memorandum & Articles of

Name & registration Association details company of the

Latest

Annual

Return

with

the

ROC

acknowledgement

Principal place of

List of Directors and the Form 32s supporting their 46

business (registered address)


director status Resolution of the Board of Directors to open an account and identification of those who have authority to operate the account

Operating address of the company

Power of Attorney granted to its managers, officers or employees to transact business on its behalf

Telephone/Fax Number

PAN proof for the Company Any utility Bill for the operating address Identity and address proof as applicable to accounts of individuals for all signatories, the Managing Director, the Chairman and signatories to the Board Resolution and all shareholders holding over 20% of the capital of the company

KYC for any company which is a significant shareholder of this company.

Accounts firms

of

partnership

Registration certificate, if registered OR any business registration document (eg, Sales Tax Registration/ Service Tax Registration, Shops &

Evidence name

Legal Establishments Registration, Factory Registration etc)

Evidence of Address

Partnership deed copy Power of Attorney granted to any employee of the firm to transact business on its behalf

(Registered Operating)

and

Names

of

all

Any utility bill in the firms name evidencing its

partners and their 47

addresses

operating address KYC documents for all partners and Power of Attorney holders

Telephone numbers of the firm and

partners Accounts foundations

PAN proof for the Firm Certificate of registration, if registered or PAN Allotment letter / Acknowledged Income Tax Return, if not the Trust is not registered

of

trusts

&

Names of trustees,

Any utility Bill for the Operating and Registered address evidence

settlers, beneficiaries signatories


and

Trust Deed copy Power of Attorney granted to any employee to transact business on its behalf

Names addresses founder, of

and the

Trust Resolution of the managing body of the foundation/association

the

managers/directors and the beneficiaries


KYC documents for the trustees, signatories and all beneficial owners with over 20% share

Telephone/fax numbers

Figure 13

KYC DOCUMENTS FOR SALARIED 1. Identity and Residence proof of all applicants Copy of Valid Passport / Voter's ID / Valid Driving licence / Ration Card (For Ration card without photo, separate bank signature verification is essential) / Employer's issued Photo ID + 48

Letter 2. Age proof of all applicants - Copy of Valid Passport / Valid Driving licence / PAN Card / Birth certificate / School Leaving certificate / Voters ID Card 3. Residence proof of all applicants Copy of Latest Telephone bill / Latest Electricity bill / Valid Registered Rental Agreement / Pan Intimation Letter / Medical Insurance Policy / Latest bank statements received by customer by post ( Not of co-operative bank and approved by L&C) / Voter's ID / Driving License / Ration Card- same condition as Identity Proof / Valid Passport / Credit card statements / RV report / Employer's issued Photo ID + Letter Signature Verification proof of applicant - Copy of Valid Passport, Valid Driving License, Copy of Pan Card or IPC Cheque of > INR 10,000/ADDITIONAL KYC DOCUMENTS FOR NRI/ MARINER Notarized GPOA Copies of CDC and Mariner Declaration (for Mariner) Indian Passport, Overseas Employment card issued by the government in country of employment (for NRIs only) Foreign passport/ National ID card/ Overseas Driver's License/ Social security card. (For PIO)

ADDITIONAL KYC DOCUMENTS FOR PVT. LTD. COMPANIES

49

Office address proof - Copy of latest Utility bill / Valid Registered Rental or Lease Agreement along with Utility Bill in the name of Landlord / Current A/c statement for last 6 months Shop and Establishment Certificate / Sales Tax Registration Certificate / Factory Registration Certificate / SEBI Registration Certificate / Form 18 & ROC Receipt Copy of MoA/AoA and True Copy of Certificate of Incorporation, Form 32 or Annual return copy with ROC KYC documents (No. 3, 4, 5) of all shareholders with more than 20% individual share in Company

ADDITIONAL KYC DOCUMENTS FOR PARTNERSHIP FIRMS Office address proof - Copy of latest Utility bill / Valid Registered Rental or Lease Agreement along with Utility Bill in the Name of Landlord / Current A/c statement for last 6 months Shop and Establishment Certificate / Sales Tax Registration Certificate / Factory Registration Certificate / SEBI Registration Certificate / Utility Bill in name of firm or landlord with a lease agreement (only to be used as a 2nd address Proof or operating address proof for non face to face or as an Operating address proof in face to face) KYC documents of all partners with more than 20% individual share in Firm

ADDITIONAL KYC DOCUMENTS FOR PROPRIETORSHIP FIRM

50

Office address proof - Copy of latest Utility bill / Valid Registered Rental or Lease Agreement along with Utility Bill in the Name of Landlord / Current A/c statement for last 6 months Shop and Establishment Certificate / Sales Tax Registration Certificate / Factory Registration Certificate / SEBI Registration Certificate

PROJECT: In this kyc part I was given a data of around 20 customers whom I were supposed to call and ask them to get their kycs updated. Everybody had different accounts with the bank like the individual account, joint accounts, account for the companies, partnership firms and accounts for the trust and foundations. I asked them about the type of account they are holding with the bank and explaining them about the respective documents required for the various accounts to get their kycs updated. When I called the customers some of them knew what kycs are but some of them didnt know what they are. So I explained them about the kycs. Some of the clients had already deposited the documents. Maximum of them showed the positive response and they dropped in the branch to get their documents updated. There were only few clients who didnt turn up because either they were not in the town or they were busy with some important work. The clients were very supportive.

51

Experience of working with Bank of Maharashtra

The working really proved to be beneficial for me. I was very successful. It gave out positive results as I got to learn different things from different service managers and their style of working and how the customers queries are solved. Almost got to learn the whole basics of the banking and got interact with customers. As this working helped me to interact with the customers, it helped in me building the confidence to talk to them.

When I interacted the priority clients, they were very supportive and listened and to the things very respectfully. Earlier I was very hesitant in talking to clients but slowly and steadily it build in me the confidence to talk to them. My next project i.e. on the electronic services was also successful as I was able to achieve my target off getting the

52

applications filled by the customers an encouraging them to operate their accounts through the net and visiting less to the branch.

Findings:
All the private and public sector banks are recognizing importance of the relationship management in their growth and customer retention. The officials try to make best relation with the customers. Staff member gives regular updates to their customers and information of the product and their services. The registers and files are systematically maintained on a daily basis and in an organized manner.
Most of the respondents are having more than two accounts and holds more than

two products with Bank of Maharashtra.

53

Bank has shown better utilization of cash balance of customer by cross selling other products. According to respondents feedback it is observed that bank is in need to increase their branches in region as well as pay concern to increase their ATM network. Greater retention of customers is being needed as they are offering various products and services. This enables a great understanding of what customers may expect from the bank and what to offer to them. This leads to defining where each customer is in his relationship with the bank so that cross-selling can be done Officials employed find themselves in much burden as there are very less number of sales executives.

RECOMMENDATION

Managers should recognize that a certain amount of conflict will almost always exist between professional and hierarchical authority and control systems. The key is to transform this conflict into motivation by structurally insulating these workers from organization pressure, while simultaneously making them aware of the importance that their work holds for the firms well being and its continued competitive advantages.

They should recognize that managing high-technology and professional employees is significantly different from managing non-professionals have a different set of values 54

and characteristics, which have been gained through their socialization in the technical specialty. Managers need to be cognizant of those values and characteristics if they are not anticipate tension points and enhance the fit between the individual and the job.

They should attempt to develop HR practices and policies that have had some success in attracting, motivating and retaining the high-tech work force.

That requires, at a minimum, knowledge of or systematic diagnosis of organizational practices, and matching HR practices to the organizations culture.

It also requires that a cadre of competent HR manager manage the transition. The days of ready-fire aim are over for high-technology firms seeking competitive advantages in their markets. They should study the change process and learn from their experiences from change owing to internal and external factors, including departures from tradition, new leaders with new visions, crisis or other starting events, key decisions on the part of senior management, or tests, of their infrastructure ability to accommodate change. Firm also change because of change. But professionals and other high-tech workers must clearly see the need for change, otherwise, they may not support the change, or they may even sabotage it, therefore communication must be reemphasized. They should design jobs and work relationship to take advantage of technical specialties. For example, rotating professionals through multiple role and job responsibilities can sensitize them to new ides and opportunities.

55

They should establish career sensitive tracking systems so that career development becomes an integrated part of their firm practices.

They should utilize a menu of salient relevant that are relevant for high tech and professional workers. These reminders ideally should be linked to performance, but in some culture they might be liked so effort, risk taking, or other relevant behaviors.

REFERENCES/ BIBLIOGRAPHY
Banking : The Network is the bank, by Yogesh Sharma, Dataquest, January 31, 2006 Race will end in survival of the fittest, The Financial Express, November 29, 2006. The Times of India, 26 July, 2007. The future is in e-banking by Mr. K.V. Kamath (Managing Director, ICICI), April 14, 2002, Business Line. RBI road map for banking, The Indian Express, July 21,2007.

56

Banking in India, by Dr A. K. Mishra (Professor & Chairman of Finance Group at IIM Lucknow).

Web-sites:
http://www.bankofmaharashtra.in https://www.mahaconnect.in www.moneycontrol.com

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