COMPANY NAME

INDUSTRY PROFILE
BANKING
Without a sound and effective banking system in India it cannot have a healthy
economy. The banking system of India should not only be hassle free but it should
be able to meet new challenges posed by the technology and any other external and
internal factors. Banking in India has its origin as early as Vedic Period. It is
believed that the transition from money lending to banking must have occurred
even before Manu, the great Hindu Jurist who has devoted a section of his work to
deposits and advances and laid down the rules relating to rates of interest. During
the days of East India Company it was the turn of the agency houses to carry on the
banking .

History
The banking system of India should not only be hassle free but it should be able to
meet new challenges posed by the technology and any other external and internal
factors. For the past three decades 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 the remote corners of the country. The first bank in
India, though conservative, was established in 1786. From 1786 till today, the
journey of Indian Banking System can be segregated into two distinct phases. They
are as mentioned below:
Early phase from 1786 to 1969 of Indian Banks
Nationalisation of Indian Banks and up to 1991 prior to Indian banking
sector Reforms.
Phase I
The General Bank of India was set up in the year 1786. Next came Bank of
Hindustan and Bengal Bank. The East India Company established Bank of Bengal
(1809), Bank of Bombay (1840) and Bank of Madras (1843) as independent units
and called it Presidency Banks. These three banks were amalgamated in 1920 and
Imperial Bank of India was established which started as private shareholders
banks, mostly Europeans shareholders. In 1865 Allahabad Bank was established
and first time exclusively by Indians, Punjab National Bank Ltd. was set up in
1894 with headquarters at Lahore. Between 1906 and 1913, Bank of India, Central
Bank of India, Bank of Baroda, Canara Bank, Indian Bank, and Bank of Mysore
were set up. Reserve Bank of India came in 1935. During the first phase the growth
was very slow and banks also experienced periodic failures between 1913 and
1948. There were approximately 1100 banks, mostly small. To streamline the
functioning and activities of commercial banks, the Government of India came up
with The Banking Companies Act, 1949 which was later changed to Banking
Regulation Act 1949 as per amending Act of 1965.

Phase II
Government took major steps in this Indian Banking Sector Reform after
independence. In 1955, it nationalised Imperial Bank of India with extensive
banking facilities on a large scale specially in rural and semi-urban areas.

It formed State Bank of india to act as the principal agent of RBI and to handle
banking transactions of the Union and State Governments all over the country. By
the 1960s, the Indian banking industry has become an important tool to facilitate
the development of the Indian economy. At the same time, it has emerged as a
large employer, and a debate has ensued about the possibility to nationalise the
banking industry. Indira Gandhi, the then Prime Minister of India expressed the
intention of the GOI in the annual conference of the All India Congress Meeting.
Seven banks forming subsidiary of State Bank of India was nationalised in 1960 on
19th July, 1969, major process of nationalisation was carried out.

A second dose of nationalization of 6 more commercial banks followed in 1980.
The stated reason for the nationalization was to give the government more control
of credit delivery. With the second dose of nationalization, the GOI controlled
around 91% of the banking business of India. Later on, in the year 1993, the
government merged New Bank of India with Punjab National Bank. It was the
only merger between nationalized banks and resulted in the reduction of the
number of nationalised banks from 20 to 19.

Phase III
This phase has introduced many more products and facilities in the banking sector
in its reforms measure. In 1991, under the chairmanship of M Narasimham, a
committee was set up by his name which worked for the liberalisation of banking
practices.
The country is flooded with foreign banks and their ATM stations. Efforts are
being put to give a satisfactory service to customers. Phone banking and net
banking is introduced. The entire system became more convenient and swift. Time
is given more importance than money. The financial system of India has shown a
great deal of resilience. It is sheltered from any crisis triggered by any external
macroeconomics shock as other East Asian Countries suffered. This is all due to a
flexible exchange rate regime, the foreign reserves are high, the capital account is
not yet fully convertible, and banks and their customers have limited foreign
exchange exposure.

Liberalisation
In the early 1990s, the then Narsimha Rao government embarked on a policy of
liberalisation, licensing a small number of private banks. These came to be known
as New Generation tech-savvy banks and included Global Trust Bank. This move,
along with the rapid growth in the economy of India, revitalized the banking sector
in India, which has seen rapid growth with strong contribution from all the three
sectors of banks, namely, government banks, private banks and foreign banks.
The next stage for the Indian banking has been setup with the proposed relaxation
in the norms for Foreign Direct Investment, where all Foreign Investors in banks
may be given voting rights which could exceed the present cap of 10%,at present it
has gone up to 49% with some restrictions.

Currently, banking in India is generally fairly mature in terms of supply, product
range and reach-even though reach in rural India still remains a challenge for the
private sector and foreign banks. In terms of quality of assets and capital adequacy,
Indian banks are considered to have clean, strong and transparent balance sheets
relative to other banks in comparable economies in its region. With the growth in
the Indian economy expected to be strong for quite some time-especially in its
services sector-the demand for banking services, especially retail banking,
mortgages and investment services are expected to be strong. One may also expect
M&A, takeovers, and asset sales. In March 2006, the Reserve Bank of India
allowed Warburg Pincus to increase its stake in Kotak Mahindra Bank (a private
sector bank) to 10%. This is the first time an investor has been allowed to hold
more than 5% in a private sector bank since the RBI announced norms in 2005 that
any stake exceeding 5% in the private sector banks would need to be vetted by
them.

Indian Banking system
The Indian Banking Industry can be categorized into non-scheduled banks and
scheduled banks. Scheduled banks constitute of commercial banks and co-
operative banks. There are about 67,000 branches of Scheduled banks spread
across India. As far as the present scenario is concerned the banking industry in
India is in a transition phase. The Public Sector Banks (Pubs), which are the
foundation of the Indian Banking system account for more than 78 per cent of total
banking industry assets.

Unfortunately they are burdened with excessive Non Performing assets (NPAs),
massive manpower and lack of modern technology.

On the other hand the Private Sector Banks are witnessing immense progress. They
are leaders in Internet banking, mobile banking, phone banking, ATMs. On the
other hand the Public Sector Banks are still facing the problem of unhappy
employees. There has been a decrease of 20 percent in the employee strength of the
private sector in the wake of the Voluntary Retirement Schemes (VRS).

Indusland Bank was the first private bank to be set up in India. IDBI, ING Vyasa
Bank, SBI Commercial and International Bank Ltd, Dhanalakshmi Bank Ltd,
Karur Vysya Bank Ltd, Bank of Rajasthan Ltd etc are some Private Sector Banks.
Banks from the Public Sector include Punjab National bank, Vijaya Bank, UCO
Bank, Oriental Bank, Allahabad Bank, Andhra Bank etc.
ANZ Grindlays Bank, ABN-AMRO Bank, American Express Bank Ltd; Citibank
etc are some foreign banks operating in India.

Commercial banks
Commercial banks have been in existence for many decades. Commercial Banks
mobilize savings in urban areas and make them available to large and small
individual and trading units mainly for Working Capital requirements. After1969,
Commercial Banks are broadly classified into nationalized public sector banks and
private sector banks.
The State Bank of India and its associate Banks along with another 20 banks are
the public sector banks. The private sector banks include a small number of Indian
Scheduled banks which have not been nationalized.

Public Sector Banks
Public sector banks are those which are owned by the Central Government either
directly or through the Reserve Bank of India. They are also known as
Nationalised Banks. Eg: State Bank of India and its subsidiaries, Allahabad Bank,
Corporation Bank, Vijaya Bank, Canara Bank, Bank of Baroda, Punjab National
Bank, Syndicate Bank, the Oriental Bank of Commerce.


Private Sector Banks
Private Sector banks are those which are owned and controlled by private
entrepreneurs. Private sector banks are classified as Private sector Indian Banks
and Private Sector Foreign banks. Private Sector India Banks are those which are
owned and controlled by Indian Entrepreneurs. Indusland Bank was the first
private bank to be set up in India. IDBI, ING Vyasa Bank, HDFC Bank, ICICI
Bank, UTI Bank (Now Axis Bank), Centurion Bank. Private sector Forign Banks
are those which are owned and controlled by foreign entrepreneurs. ANZ
Grindlays Bank, ABN-AMRO Bank, American Express Bank Ltd; Citibank etc are
some foreign banks operating in India

Regional Rural Banks
The Regional Rural Banks (RRB) came into existence since the middle of 1970s
with the specific objective of providing credit and deposit facilities particularly to
the small and marginal farmers, agricultural laborers and artisans and small
entrepreneurs.

Co-operative banks
In India, co-operative Banks has assigned an important role in the development of
vital areas such as agriculture, rural and small-scale industry, retail distribution;
housing etc. the cooperative banking sector has been developed in the country to
replace the village moneylenders. They also promote savings of the farmers and
meet their credit needs for cultivation. The cooperative banking sectors are not
only in rural areas but now they have spread to urban areas also.


Scheduled banks and non-scheduled banks
Under the RBI Act, 1934, banks were classified as Scheduled banks and non-
scheduled banks. the scheduled banks are those which have are included in the
schedule(second)of RBI Act,1934.these banks have a paid up capital and reserves
of an aggregate value of not less than Rs.5 lakhs and which satisfy RBI that their
affairs are carried out in the interest of their depositors. Scheduled Banks comprise
commercial banks and the cooperative banks, In terms of ownership, Commercial
banks can be further grouped into nationalized banks, the State Bank of India and
its group banks, Regional Rural Banks and Private sector Banks (old, new,
domestic and foreign).These banks have over 67,000 branches spread across the
country. Non-scheduled banks are those which have not been included in the
second schedule of RBI Act, 1934.at present, there are three non-scheduled banks
in India.













COMPANY PROFILE
BACKGROUND AND INCEPTION OF THE COMPANY
Corporation Bank is one of the oldest Banking Institutions in the Dakshina
Kannada district of Karnataka and one of the oldest banks in India. As the saying
goes on A thousand mile journey starts with small step. A step was taken by Shri
Khan Bahadur Haji Abdullha Haji Kasim Saheb Bahadur, a businessman of Udupi
way back on the 12th of March 1906 with a group of philanthropist founded the
Canara Banking Corporation of Udupi Limited. A handful of people representing
the various interests decided to promote the Canara Banking Corporation of Udupi
Limited. Eleven persons who included 4 pleaders, 2 educationist, 1 insurance
agent and 1 retired sub magistrate where the first signatories of the Articles of
Association and Memorandum of Association of the bank who had in all 111
shares. The need to start this bank was felt because there was no such facility at
Udupi, an important trading centre next to Manglore in Dakshin Kannada district.
The indigenous banking was largely in the hands of few rich private individuals
and some thing had to be done to provide relief to the common man from the
clutches of the money lenders who held fully swey. What inspired the founding
fathers was the fervor of swadeshism, for promoting the bank, the founder
president made an appeal saying, the primary object in forming the Corporation
Bank is not only to cultivate habit of thrifts amongst all classes of people, without
distinction of the cast or creed, but also habit 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 the end in view.
It was called through co-operation of all, shorn of distinction of caste and creed
The Canara Banking Corporation Limited as the institution was called then,
started functioning as a Nidhi with a humble beginning. The initial capital was
Rs 5000. Corporation Bank which was founded in 1906 and today it is a 100 year
young bank.

The bank had its origin in the temple town, Udupi which was then a part of
Dakshin Kannada district. The credit of introducing the bank goes to the Canara
Banking Corporation of Udupi Limeted. Corporation Bank is a public sector bank
which has been silently creating waves among the domestic banks in India. It is
one of the Nationalised Banks in India. The bank withstood the challenges of the
financial sector reforms and has emerged as the one of the financially and
fundamentally strong, well capitalised, technological sophisticated, efficient,
effective and one of the most profitable bank in India.
In the year 1952, Corporation Bank became the third bank in the country to receive
license from the Reserve Bank of India as Scheduled Bank. In the year 1961, the
bank of citizens was merged with the Corporation Bank. It was nationalised in
April 1980, which triggered the growth of the bank in terms of geographical reach
and business volumes.
The name of the bank was changed from Canara Banking Corporation of Udupi
Limited to Corporation Bank in the year 1973 and the corporate office of the bank
was shifted to Mangalore.







Vision, mission and Quality policy
CORPORATE VISION
To emerge as the most preferred Bank with global standards in financials,
efficiency, technology, products and services.

CORPORATE 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
Strengths of the Bank
The Bank has well experienced and qualified staff in the Top Position as well
as functional level. It has a sound asset quality with provisional coverage of 75%
which is best amongst its peers. Its net NPA in the second quarter of 2009-10 was
only 0.29%, while restructured loans constitute 3% of the loan book as compared
to 10% plus level for a for other bank. The Bank has also lowest operational cost
among its peers. Cost to income ratio fell from 44.6% to 32.2% over a three year
period. The total vehicle loan portfolio of the bank stands for at Rs 960 crores and
home loan 4400 crores. The total retail portfolio of the bank is only 18% of the
total advances.

Corporation bank has altogether progress in its business parameters, registering
29.47% growth over the previous year; profit growth registered an increase of
21.47%.Bank is having full computerized environment in all its branches with
interconnectivity through core banking.
A good number 1054 branches and 1032 ATM across the country and two
representative offices in HONG KONG and DUBAI gives a strong presence
across the globe.

ACHIEVEMENT/ AWARD
National Award for Assistance to Exporters from the President of India (1976-77).
Gem & Jewellery Export Promotion Council Award for 5 years from 1981- 85.
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) .
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.
[5]

During 2008-09 the bank received the Gold Trophy of the scope Meritorious
Award for the best managed bank/financial institution /insurance company.
The bank was also awarded the SKOCH challenger Award 2008 for the consumer
relationship management.
Bank has also won the use of technology for Financial Inclusion awarded from
the institute for Development and Research in Banking Technology (IDRBT)

Major recognitions

Indias Best Public Sector Bank - Business Today - KPMG Survey
dated 7 December, 2003
Indias Strongest and Asias Second Strongest - The Asian Banker,
Singapore dated 15 December 2003
Indias Best Public Sector Bank - Outlook Money , 15 March 2004
One among Indias Best Public Sector Banks - Business Today, 26
February 2006
Among the mid size Banks, Corporation Bank is ranked Number 1
bank and Number 3 as fastest growing bank Businessworld,
December 2009

ASSET QUALITY
The NPA provision coverage ratio stood at 80.78% as at 31.03.2010 compared to
75.27% as at 31.03.2009
Total Cash Recovery is Rs 320.08 Crore as against Rs 278.45 Crore.
Corporation Bank has diversified into new areas such as credit card, merchant
banking, hire purchase and releasing and electronic remittance services.
Corporation Bank is one among the few banks in the country to take up principal
membership of visa international and Master-card International .

COMMITMENT TO SOCIETY
Corporation Bank being a public sector bank also works towards the economic
development of the country. It plays an important role in the revival of weaker
sections of the society. Corporation Bank is bounded by the guidelines of the RBI
to provide credit to the priority sectors. The priority sector consists of farmers,
artisans and small-scale industries.

















ORGANISATIONAL STRUCTURE OF
Corporation bank

Three tier structure:
CBOO is a unitary organization with a three tier setup. At the central level there is
an Executive Committee comprising office bearers elected in the Central Board,
ex-officio members representing the Zonal Units and nominated functionaries. The
Zonal committee constitutes the second tier comprising the elected regional level
functionaries. At the lowest tier are the Branch Secretaries working as the link
between the members at the grass root and the office bearers at different levels.

Composition of the EC
The Executive Committee consists of the following functionaries

01. President
02. Vice Presidents (2)
03. General Secretary
04. Joint General Secretary (4)
05. Deputy General Secretary (3)
06. Treasurer
07. Secretary Benevolent Fund
08. Secretary Women's Wing
09. Circle Secretary (6)
10. Assistant General Secretary (5)
11. Secretary, Balasubramaniam Foundation for Education & Training
12. Secretary, SWASTI
13. Zonal Secretaries (32)

Out of these, the members in their triennial General Body Meeting elect 14 office
bearers from 1 to 8. The Executive Committee nominates 6 office bearers from 9 to
11.

Zonal Secretaries:
The Zonal Secretaries are ex officio members. They are elected at the triennial
general body meeting of members at every Zone corresponding with the Bank's
geographical zone. For the sake of efficiency, the Bank's Head Office, Mangalore
is treated as one zone with an exclusive Zonal Committee elected in the meeting of
the members working in Head Office.

The Zonal committee comprises the following functionaries:
1. Zonal Chairman
2. Zonal Secretary
3. Deputy Zonal Secretary
4. Zonal Lady Secretary
5. Area Secretaries (minimum 5 and maximum 15, depending on the size of the
membership and spread of the Zone)

The current Zonal wise list of committees along with their contact numbers and
addresses is given in the section on the list of Zonal office bearers.


Branch Secretaries:
The branch secretaries are generally elected by the members of the branches;
where the members are very few, such secretaries are nominated by the Regional
Committee.

Meetings:
The Executive Committee generally meets not less than 3 times a calendar year.
The meetings are held in different places. The President chairs the meeting. The
proceedings of the meetings are recorded and preserved. The Zonal committee also
meets not less than 3 times a year. The Zonal chairman presides over the meeting.

















SWOT ANALYSIS OF CORPORATION BANK

CORPORATION BANK
Parent company Government of India
Category Bank
Sector Banking and finance
Tagline/Slogan Prosperity for all
USP Customised banking solutions


STP
Segment Rural and urban Banking
Target group Emerging markets
Positioning Complete Banking solutions

SWOT ANALYSIS

STRENGTH 1.Equal presence in rural and urban
areas
2.Strong financial performance.
3.Employee base of over 12000 people
4.Customised banking solutions.
WEAKNESS 1.Lack of Pan India presence.
2.Less publicity and branding in
comparison with leading banks.
Opportunity 1.Innovative products and services.
2.Government funding.
Threats 1.Economic crisis and volatile markets
2.Changing RBI policy
3.Presence on other banks.


COMPETITION
COMPETITORS 1. S.B.I.
2.Andhra Bank
3.Allahabad bank
4.Canara bank