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SBP DAIRY
Loans for rearing cows/ buffaloes
TRACTOR LOANS
For purchase of tractor/ implements
HORTICULTURE
For raising orchards
APICULTURE
For raising honey bees
b. PISSICULTURE
AQUACULTURE:
For fisheries/ pran farming
AGRI CLINIC
For establishing agro centres/agriculture Clinic
FLORICULTURE
Credit
facilities
are
provided
for
raising
flowers/green
houses
etc.
POULTRY
Loans to individuals who are technically qualified for poultry farming.
MUSHROOMS CULTIVATION
Credit
facilities
are
provided
for
the
cultivation
of
mushrooms
WEAKER SECTIONS
DRI SCHEME: Financial assistance is provided to low income group for
production and gainful endeavours at concessional rate of interest.
SJSRY SCHEME
To provide gainful employment to the urban unemployed or under employed
poor through setting up of self-employment ventures or provision of wage
employment.
SLRS SCHEME
For liberation and rehabilitation of scavengers and their dependents from their
existing hereditary and obnoxious occupation of manually removing night soil
and filth.
SGRY SCHEME
Swarnjayanti Gram Swarozgar Yojna covers all aspects of self-employment
such as organisation of the poor into self Help Groups, training, credit,
technology, infrastructure and marketing.
NRI Can open following types of accounts :Savings Bank Accounts/Current Accounts/ Recurring Deposit Accounts/ Term Deposit
Accounts / Special Term Deposit Accounts
i.
Accounts can be opened only by non-resident Indians (NRIs) or jointly only with
another NRI.
ii.
Accounts can also be opened with resident Close Relative on Former or Survivor
Basis.
iii.
iv.
ii.
The scheme has all the features of Savings Bank Account and returns of Term
Deposits. This scheme offers greater flexibility and liquidity to customers.
d. SB NRI Advantage
This is an exclusive Savings Bank product for NRI customers having NRE/NRO Savings
Bank Accounts with a minimum balance of Rs1.00lac and above. It offers several value
added facilities along with all the features of the normal Savings NRE/NRO Account.
The additional facilities will be available to Savings Bank Account Holders (NRE/NRO)
with a minimum balance of Rs1.00lac and above
ii.
iii.
Can be opened jointly with resident close relative on former or survivor basis.
iv.
v.
vi.
The minimum period of deposit is one year and the maximum period is 5 years.
g. TYPES OF LOANS
i.
ii.
i.
MISCELLANEOUS
Domestic ATM-cum-Debit Card
International ATM-cum-Debit Card
Retail Internet Banking
Government Accounts
The State Bank of Patiala has centralised the payment of pension across all CBS
Branches. This has been possible with the creation of a Centralised Pension Processing
Cell (CPPC) at Patiala to calculate, at a centralised level, the amount of pension
payable to all pensioners drawing their pension from State Bank of Patiala.
There are centralised pension processing center of state bank of Patiala in india. By
which the payment of the pension to the retired government employees are made.
The public provident fund is also looked after by the the state bank
of india.
This is a special scheme for the senior citizen who were government
employees.
The New Pension Scheme (NPS) has been introduced by Government of India to give
pension benefits to the common man specially those who are self employed such as
shopkeeper and professionals and those in the unorganized sector.
Type of Product
ASBA
Gold Coins
Table 1.1 :- Other financial product and services and ties of State Bank Of Patiala
13178
Employees.And as far as turnover is concerned, the total Business crossed Rs. 1,64,000
crores. Operating Profit is Rs. 1619.34 crore (growth 0.21%). And book value of Rs.100
per share improved from Rs 1622 to Rs1813 in 2013.
1.7 ORGANIZATION STRUCTURE OF THE COMPANY
BOARD OF DIRECTORS
Chairman,
Managing Director,
Head Office,
Under Secretary,
Government of India,
Ministry of Finance,
Systems,
14th Floor,
MUMBAI 400005.
SHRI PURNA CHANDRA JENA,
General Manager,
B-142, Shivalik,
RAJPURA 140401
SHRI JAGDISH SHARMA,
Workmen Director,
State Bank of Patiala,
Shastri Bhawan Branch, NEW DELHI
Table 1.2 : List of Board Of Directors
Managing Director
Phone: 0175-2212010
Banking)
Phone : 0175-2214425
Email : mdsbp@sbp.co.in
Fax : 0175-2214303
Email : cgmsbp@sbp.co.in
SHRI. S.VIJAYKUMAR
Phone : 0175-2209400
Phone: 0175-2301106
Fax : 0175-2301226
Fax: 0175-2301106
Email : cgmnb@sbp.co.in
Email : gmhr@sbp.co.in
SHRI. V.SRINIVASAN
Phone: 0175-2303078
Delhi)
Fax: 0175-2220317
Phone: 011-24363676
Email : gminsp@sbp.co.in
Fax: 011-24369007
Email : gmcbdel@sbp.co.in
SHRI. U. V. GHORPADE
Phone: 0175-2205607
Fax: 0175-2301047
Email : gmsamg@sbp.co.in
Phone: 0175-2214680
Fax: 0175-2215490
Email : cro@sbp.co.in
SHRI. J. C. DAS
Patiala)
Mumbai)
Phone: 0175-2214323
Phone:022-22025919
Fax: 0175-2215503
Fax:
Email : gmcb@sbp.co.in
Email : gmcbmum@sbp.co.in
SHRI. P. K. CHOPHLA
Chandigarh)
Phone: 0175-2214709
Phone:0172-2779115
Fax: 0175-2301923
Fax:
Email : gmvig@sbp.co.in
Email : gmnw2@sbp.co.in
SHRI. D. V. SURESH KUMAR
Phone: 0175-2395629
Financial Inclusion)
Fax: 0175-2300196
Phone: 0175-2303078
Email : gmtry@sbp.co.in
Fax : 0175-2220317
Email : gmtech@sbp.co.in
SHRI. ADIKESAVAN S.
New Business)
Phone: 011-24365174
Phone: 0175-2225378
Fax:011-24365196
Fax: 0175-2200416
Email : gmnw3@sbp.co.in
Email : gmpd@sbp.co.in
SHRI. M.V.KRISHNA
General Manager(Retail Network, Patiala)
Phone: 0175-2300501
Fax: 0175-2304501
Email : gmnw1@sbp.co.in
CHAPTER 2
2.1 SWOT ANALYSIS
The SWOT analysis is one of the very useful tool for understanding and decision-making for
all sorts of situations in business and organizations. SWOT is an acronym for Strengths,
Weaknesses, Opportunities, and Threats. A scan of the internal and external environment is
a crucial part of the strategic planning process, which is being covered by SWOT analysis. It
is used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a
project or in a business venture. Strengths, Weaknesses are considered to be internal to the
corporation or organisation where as Opportunities, and Threats are part of the external
environment. The analysis involves identifying the purpose of the business venture or
project and recognizing the internal and external factors that are favorable and unfavorable
to achieve that goal. The method is being developed by Albert Humphrey, who led a
convention at Stanford University in the 1960s and 1970s using data from Fortune 500
companies.
1. Strengths : Uniqueness of the business or department that give it an advantage over others
in the industry.
2. Weaknesses : These are characteristics that place the firm at a disadvantage relative to its
peers.
3. Opportunities : These are the external factors that will boost the sales or profitability of
the
organisation.
4. Threats : These external elements in the environment could cause trouble for the business.
The internal factors may be viewed as strengths or weaknesses depending upon their
impact on the organization's objectives. What may represent strengths with respect to one
objective may be weaknesses for another objective. Identification of SWOTs is essential
because subsequent steps in the process of planning for achievement of the selected
objective may be derived from the SWOTs. SWOT analysis is a tool for auditing an
organization and its environment. It is the first stage of planning and helps to focus on key
issues.
A. Strength
1. A strong brand name is a major strength of State bank of patiala. This gives State
bank of patiala the ability to charge higher prices for their products because
consumers place additional value in the brand.
2. When given a choice, customers are loyal to State bank of patiala. Instead of targeting
all customers, State bank of patiala only needs to target new customers in order to
grow their business.
B. Weakness
1. An inefficient work environment means that State bank of patialas goods and
services are not being utilized properly.
2. A tarnished reputation can hurt State bank of patialas brand in the eyes of a
consumer.
3. Weak management increases business risks and reduces profits for State bank of
patiala, because they are responsible for the health of the business.
C. Opportunity
1. New services help State bank of patiala to better meet their customers needs. These
services can expand State bank of patialas business and diversify their customer base.
2. New technology helps State bank of patiala to better meet their customers needs with
new and improved products and services. Technology also builds competitive barriers
against rivals.
3. New products can help State bank of patiala to expand their business and diversity
their customer base.
4. Since the bank is yet to modernize few of its banking operations, there is a better
scope of using advanced technologies and software to improve customer relations
D. Threats
1. Intense completion can lower State bank of patialas profits, because competitors can
entice consumers away with superior products
2. FDIs allowed in banking sector is increased to 49% , this is a major threat to SBP as
people tend to switch to foreign banks for better facilities and technologies in banking
service
The State Bank of Patiala became India's first fully computerized Public Sector
Bank on jan 24,2003.
State Bank of Patiala by fully networking all its brances on Core Banking Solutions
on 08.08.2005 and become the first fully networked Public Sector Bank in the
country.
Chapter-3
v.
vi.
vii.
Clerical Positions
A clerk is mostly a front staff in a state bank. Depending on the requirement clerks are placed
at different counters of the banks e.g. savings, deposit, current deposit, term deposit, retail
loans, cash credit, agricultural loans, credit cards, government business, cash receipt or
payment etc. Maximum customer interface in banks occurs at these counters managed by
clerical staff.
ii.
The minimum age for applying for the position of a clerk in nationalised or private sector
banks is 18 years. The maximum age limit is 28 years. There is no uniformity with regard to
educational qualification for eligibility. This becomes clear from the recently advertised
positions of clerks in different banks. In one bank graduates with minimum 40% marks are
considered eligible while another banks is accepting candidates with 60% marks in aggregate
in 12th standard. Those having an university degree (in any class) could also apply. This bank
has put another condition of having secured minimum 60% marks in mathematics at
SSC/10th standard. As most of the recruitments in clerical cadre in public sector banks are
made state-wise, the candidate applying for the post in a particular State is expected to be
proficient in the language of the State. Proficiency means knowing to read, write, speak and
understand the language.
iii.
Eligible candidates are asked to appear in a written examination. This written examination is
objective in nature consisting of four papers viz
Computer Awareness
The structure of written examination may differ from bank to bank. To qualify in the written
test the candidate should pass in each of the objective test separately with required minimum
qualifying marks. It is also necessary that the candidate obtains a certain percentage of marks
to be eligible for moving to next stage of selection.
From those who get the qualifying marks as above, the bank calls a fixed number of people to
appear in the interview process. The number of people called for interview is in a certain
proportion of available vacancies. This interview is a simple process in which question about
candidates academic and cultural background, career goals etc. are asked. Effort is also
made to know about his aptitude for the job and customer orientation etc. Most of the people
applying for a clerks position in the bank are fresh from college. They should be ready to
answer questions about their choice of subjects, streams etc. From people who are employed
or have work experience, questions may be asked about the job or assignments they have
been handling. In case of interview also minimum qualifying marks are prescribed.
The final merit list is drawn by adding up marks obtained by the candidate in the written test
and interview.
iv.
Career Prospects
Finally selected candidates can look forward to a fruitful career in the bank, they join. All
public sector banks provide training to new employees for equipping them to take up their
assignments. Induction training which happens immediately or soon after joining is the first
training programme they attend. Subsequently they are offered training in various banking
disciplines.
Public sector banks are few organisation which offer promotion from one cadre to another.
Thus those who join as clerks may be promoted as officers, as per banks norms. For bright
candidates, in some banks, this promotion from a clerk to officer is possible in a period as
short as one year.
v.
Vacancies in officers cadre in State banks are filled from within the organisation after
promotion of clerks and also by direct recruitment. To meet the shortage of manpower in
officers cadre, now a days the public sector banks are required to recruit large number of
officers. Most of the vacancies for which recruitments are made are in Junior Management
Graduate Scale I, which is the entry level position for joining a public sector bank as an
officer. This entry level position is known as that of probationary officer or management
trainee. Bank probationary officers can come from any discipline or field of study, although
there is a misconception that only people from commerce or finance background are eligible.
A finance or commerce background may help the candidate adjust to the banking
environments faster than others but banks recruit talents from diverse backgrounds of
science, literature etc.
The minimum age to apply for entry level officers position is 21 years while maximum age
may be 26-28 years individual banks. As regards qualification, the candidate should at least
be a graduate from a UGC recognised university. In some banks only first class graduates are
considered eligible. For some other banks the minimum percentage of marks required is 55
percent. Those with post graduate qualification may get some relaxation in qualifying
percentage of marks, in few cases. There have also been instances of banks preferring to
recruit people with post graduate degree or diploma in management. Particular recruitment
advertisement should be carefully studied to know the eligibility criteria.
The test for probationary officers consists of the following objective papers:
General Awareness
Data Interpretation and Logical reasoning
Quantitative Aptitute
English
Computer Awareness
Some banks prefer to include a descriptive paper also in the test process. In this paper the
candidate is required to write essay and attempt composition. Minimum qualifying marks are
prescribed for both objective and subjective papers. Candidates are called for interview on the
basis of marks obtained in written examination.
Interview for officers position is expected to be more comprehensive. Here along with
general questions, the interview panel may try to judge the candidates understanding of
nation's economy, issues before the economy etc. For getting selected a candidate should do
well both in written examination and interview.
vi.
With some experience one can expect to join a public sector bank in a higher scale. Most of
the vacancies in higher scales exist in Middle Management Grade II or III. Of course the
candidate should fulfill the eligibility criteria as regards to age and qualification. The
experience required for higher scales keeps changing from bank to bank, it may be one year
or more. Professionally qualified people (with qualifications like MBA, CA etc) stand better
chance in this regard.
vii.
Career Progression
There is a well defined career progression path in each State bank or public sector bank.
Performance and potential are key elements which determine this career progression. Most
senior officials in public sector banks started their career as clerk or scale I officer only. In
tune with the time banks have reviewed their promotion policy and now for bright,
hardworking and knowledgeable employees it takes less time to move to higher scales. In
many banks a person who joined as an officer may reach to the position of General Manager
in 14 years. After that one can aspire for the position of executive director or chairman of a
bank. These are very high positions, nomination to which is decided by the Government and
not by the individual banks.
f) Specimen signature cards must be kept locked and under the custody of an officer of
the Bank and specimen signature has to be scanned for storing in the computer
system.
g) All inoperative accounts must be marked as inoperative in the computer system.
h) All Current/Savings and Recurring Deposit account will be assigned serial number by
the system. Once the account number is allotted the same should be recorded in the
Account Opening Form.
i) While opening the account, the following details should be properly recorded in the
i.
ii.
iii.
iv.
v.
vi.
vii.
viii.
ix.
x.
xi.
xii.
k. Separate Index Register in alphabetical order of the customers for Current, Savings and
Recurring Deposit account should be maintained.
l. Minimum requisite amount for opening the new account has to be paid in cash.
m. Pass Book should bear the photograph of the customer.
n. A separate Index Register for Term Deposit holders & Safe Deposit Locker holders should
be maintained.
3.32
Return of Cheques:
a. All the cheques returned un paid by the Bank must be recorded in Cheque Returned
Book initially. After getting the orders of the Manager to return the said cheque proper entry
must be made in Cheque Returned Book wherein the reason/objection for return of the
cheque should be recorded.
b. Issue of advice for cheque deposited by customers for collection or clearing and also for
cash remittances through pay-in-slips, counter foil duly stamped and signed by an officer of
the Bank must be given to the customer.
c. For Credits and Debits made to customers account ie., for transfer type of transactions
resulting in such debits/credits in the customers account, copy of advice must be sent to the
customer.
3.33
Before entering cash payment cheques in the system, Ledger Assistant has to ensure that:
be attested affixed.
amount in figure and words agree,
there are sufficient funds in the account to honour the cheque.
the particular cheque has not been stopped by the Account Holder.
the balance in the account has not been attached / frozen by any appropriate
authority.
h. no notice of death/insanity/insolvency of the Account Holder has been
received.
i. tokens are to be issued and the number of which must be marked on the back
of the cheque for all cash payment cheques, and
j. the Assistant has to initial at appropriate place on the cheque for having
entered the cheque in the system.
i. The date of the cheque is valid one and that it is not a crossed cheque.
ii. Amount in words and figures agree.
iii. The signature of the Account Holder agrees with the specimen signature on
record with the Bank.
iv. The particular cheque has been entered in the correct account and the same has
not been stopped by the account holder.
v. For order cheque the identification of payee is to be established to the
satisfaction of the Bank.
b. Crossed cheques:
i. The cheques which bear the crossing must be presented through any other
banker.
ii. If the payee and the drawee has account with the same branch the drawee a/c can
be debited and payee a/c credited with the proceeds of the cheque.
iii. If the crossing is A/c Payee only, then the proceeds of the cheque has to be
credited to the payee A/c only.
iv. If a crossed cheque has to be paid by cash, then the drawer has to cancel the
crossing & write pay cash along with his signature.
c. And having been satisfied about the above the Passing Officer affixed pay cash
stamp on the cheque with his full signature under that stamp and draws a line across the
signature of the Account Holder in such way that the signature is cancelled.
d. Wherever financial / passing power for different cadres of officers have been fixed
by the Bank, all the vouchers / instruments have to be passed only by the officer who is
authorized / empowered for the purpose.
3.35
Payment of cash:
Before making payment the Cash Assistant has to ensure that:
a. The cheque is properly dated bears the signature of the drawer, posted by the
Ledger Assistant and passed by the Passing Officer.
b. The receiver of the cash payment surrenders the correct token as indicated on
the back of the cheque.
c. As an additional step to ensure that payment is made only to the correct
receiver the Cash Assistant may politely ask the receiver to sign again on the
reverse and also to state the amount to be received by him,
d. On all payment vouchers/cheques on their backside the Cash Assistant must
note the denominations in which he had made the payment and also affix
Cash Paid stamp with date and enter the denominations in the computer
system.
e. In the case of Any Branch Banking (ABB) transaction, the Account holder
only has to receive cash and no bearer can be allowed payment.
3.36 Stop Payment:
a. The drawer of the cheque can give stop payment instructions for stopping the
payment of a particular instrument.
b. The drawer has to give the correct cheque No. in the requisition along with his
signature as per Banks record.
c. The Manager has to immediately satisfy himself whether the instrument is already
paid or not. If it is unpaid the details have to be immediately entered into the
computer system for ensuring non payment of the cheque.
d. The bank cannot honour the cheque after getting the clear stop payment instructions
from the customer.
a. The drawer of the cheque can give the revokal instructions asking the bank to honour
the cheque when presented.
b. This revokal requisition can be given by the drawer by giving the correct cheque
number along with his/her signature as given in the Banks record.
c. When the stop payment is revoked the Bank can honour the cheque on presentation.
d. In the case of joint account, all the authorised signatories have to sign for giving the
revokal.
3.381Cash:
a. The cashier after satisfying himself can accept the cash and give the counterfoil of the
pay-in-slip to the person remitting the cash.
b. The Staff Assistant on the Counter should enter the amount to the account to which it
relates.
c. The Manager after satisfying himself would authorise the credit into the account.
d. Remittance of Rs. 50,000/- & above in cash is to be accompanied after verifying the
PAN No. & noting the same in the voucher.
3.382 Cheque:
a. The Staff Assistant on the counter after ensuring that the A/c number, date, amount in
words and figures, payee name is correct would give the acknowledgement of the
cheque on the counterfoil of the pay in slip.
b. The cheque has to be sent either in local clearance or outward bills cheque for
collection A/c depending on the place of the payable branch and on realization the
proceeds of the cheque has to be credited to the customers A/c.
c. If the cheque has A/c payee crossing, then the proceeds on realization has to be
credited to the A/c of the payee only.
d. Third party cheques should generally be not credited to the customers account to
prevent any wrongful conversion.
1.
i. Cheque books for newly opened account must be issued only after getting written request
from the customer. In the case of new Savings Bank accounts the Cheque book(s) may be
issued after assessing the need of the customer.
ii. All cheque Books must be issued only after being authorized by the Manager.
iii. In the case of existing accounts, fresh cheque books must be issued only against the
presentation of the Cheque Book requisition slip taken out from the previous cheque book.
iv.As a measure of precaution and as far as possible fresh heque book must be issued only
after the previous cheque book is exhausted.
v. While issuing a cheque book it must be ensured that all the cheque leaves bear the name of
the branch as well as the Account number. Whenever Cheque books are issued the details of
cheque leaves (ie. cheque numbers) should be noted in the system.
vi. the cheques issued has to be entered in cheque issue register and the customer has to sign
on the register in the column provided for having taken the cheque if the cheque book sent
by post, the same has to be noted.
vii. cheque issued has to be entered in the computer system and authorized by the Manager.
i.
2.
Issue of Loose Cheque Leaf
Loose cheque leaf must be issued only to Account Holder.
ii. Loose cheque Leaf must be issued only against specific written request by the customer
with valid reason that satisfies the Manager. Only against the authorization of the
Manager, aloose cheque leaf should be issued.
ii.
This loose cheque leaf must also be issued only after entering the details in Loose Cheque
Leaf Issue Register and after getting the signature of the customer as acknowledgement.
iii. The number of the loose cheque leaf issued to the customer should be recorded in the system.
iv. For issuing loose cheque leaf a fresh cheque book must be used, on which To be issued as
v.
Loose Leaf must be marked in Red ink and retained under the custody of the Manager.
Unused cheque leaves surrendered by a customer whose account has been closed should not
be used for issuing loose cheque leaves.
vi.
The following details must also be recorded on the face of the loose cheque leaf issued
to the customer.
Loose Leaf issued to Shri.A/c No.
The loose cheque leaf must be used on the same day of issue and it must be used only
withdrawing cash.
a. Transferring Branch
i.
At the written request of the customer his account may be closed and transferred
ii.
iii.
holders.
Unused Cheque Books/cheque leaves must be surrendered by the customer at the
iv.
v.
vi.
Transferred with upto date entries must be forwarded to the Transferee Branch.
If any outstation cheque is pending collection for this account the fact of
transferring this account to another branch must be noted in Bills Lodged
Register so that on realization the proceeds may be remitted to the Transferee
branch.
vii.
viii.
b. Transferee branch
i. When an advice regarding transfer of an account from another branch is received, the
receiving branch must open a new account in the branch in the name of the customer.
ii. It must be recorded in the system account that The account transferred from Branch.
iii. New Pass Book must be issued with the opening balance being the amount received from
another branch as per transfer credit advice.
iv. New cheque book must be issued against written request of the customer
v. New Pass Book together with old Pass Book received from another branch must be issued
to the customer after obtaining his acknowledgement.
vi. Proper entry must be made with the new account number against which it must be noted
as Account transferred from Branch in the Accounts Opened & Closed Register.
c. Cheque Books/DD Books/Payorder books have to be withdrawn from the stocks, for being
issued to customers, only in the serial order and should not be pulled out at random. All
withdrawals must be recorded in the stock register.
d. All the Cheque Books/DD/PO books and even the serial numbered Term Deposit receipt
books must always be kept under lock & key.
e. These all are called Security Instruments and therefore the stock mustbe physically
verified at the end of each month and reported to the Head Office quarterly in the
prescribed format.
e. Any credit/remittance is received for an inoperative account the fact must be brought to the
notice of the Manager who will examine the position and decide about the status of account
from inoperative to operative after proper proof to the satisfaction of the bank.
f. Interest at applicable rate must be credited for every half year and every year for all interest
bearing inoperative accounts.
g. No transactions by the concerned Account Holder be permitted in an Inoperative
Account other than close the account or to transfer it to Operative Accounts.
h. All debits to Inoperative Accounts must be passed by the Branch Manager.
i. When any remittance is received for credit to Inoperative Accounts the same should be
brought to the notice of the Branch Manager/Checking Officer, immediately.
j. In case the customer desires to revive his Inoperative Account he must be asked to give a
request letter explaining the reasons for the accountremaining dormant and why he wants to
revive the operations in the said account.
k. When the Branch Manager is satisfied with the explanation of the customer, he may
authorize transfer of such account from Inoperative Accounts status to Operative Accounts
status.
l. New cheque books should be issued to the inoperative Account Holder on revival under the
authority of the Branch Manager only after ensuring that the Account Holder is properly
identified.
a) The State Bank of Patiala (SBP), is one of the oldest bank in India, had computerized
its branches in the 1990s, but it was losing market share to private-sector banks that
had implemented more modern centralized core processing systems.
b) To remain competitive with its private-sector counterparts, in 2002, SBP began the
largest implementation of a centralized core system ever undertaken in the banking
industry.
c) The State Bank of Patiala selected Tata Consultancy Services to customize the
software, implement the new core system, and provide ongoing operational support
for its centralized information technology.
d) The State Bank of Patiala became India's first fully computerized Public Sector
Bank on jan 24,2003.
e) State Bank of Patiala by fully networking all its brances on Core Banking Solutions
on 08.08.2005 and become the first fully networked Public Sector Bank in the
country.
f) The State Bank of India has achieved its goal of offering its full range of products and
services to all its branches and customers, spreading economic growth to rural areas
and providing financial inclusion for all of India's citizens.
a) SBP had undertaken a massive computerization effort in the 1990s to automate all
of its branches, implementing a highly customized version of Kindle Banking
Systems' Bankmaster core banking system (now owned by Misys). However,
because of the bank's historic use of local processing and the lack of reliable
telecommunications in some areas, it deployed a distributed system with
operations located at each branch. Although the computerization improved the
efficiency and accuracy of the branches, the local implementation restricted
customers' use to their local branches and inhibited the introduction of new
banking products and centralization of operations functions.
b) The local implementation prevented the bank from easily gaining a single view of
corporate accounts, and management lacked readily available information needed
for decision making and strategic planning.
e) The State Bank of Patiala's objectives for its project to modernize core systems
i.
included:
The delivery of new product capabilities to all customers, including those in
ii.
rural areas.
The unification of processes across the bank to realize operational efficiencies
iii.
iv.
v.
vi.
vii.
CHAPTER 4
FUNCTIONAL ANALYSIS
4.1
MARKETING STRATEGIES
Present trend has really changed the banking senario. It is no longer enough for bank to just
manage money efficiently; they also have to manage customers, who now have a wide choice
of alternatives. The future promises to be even more exciting, interesting and challenging,
thanks to technology.
No longer will banks, or any large organization, treat customers as a group and segment them
into just some demographic and psychographic profiles. The Internet has enabled us to talk to
each customer as an individual, with different needs and requirements. Products will need to
be developed to meet those needs, and services will become the crucial differentiators. For
years, customers were part of the banks Fixed Assets; now they have moved into the Current
Assets category, and it will be a task keeping them there.
It is an attempts to bring at one place the important aspects of Banking operations for
reference of the functionaries at the delivery point of the customer services in the Bank. It is
also an effort to streamline and standardize the procedures to user in the various systems,
procedures and controls and the first of a series of such initiation planned by the Bank.
Core systems modernization has allowed the State Bank of Patiala to centralize computer
processing and operations functions, offer new banking products to all the citizens of India,
reverse a trend of customer attrition, and consolidate its affiliate banks. Additionally, the bank
can now further expand its product offerings and improve customer service.
4.4 FINANCIAL ANALAYIS OF STATE BANK OF PATIALA (RATIOS)
4.41
If ratio is 1:1,then it means that the external lender and the owners are bearing the same
degree of risk .if ratio >1 it means debt higher than the equity and business negatively
gearded.if ratio is <1 it means debt is less than owner's equity and the business is positivelly
geared.now in 2011-12 ratio is more than 1 ,its 2.26 ;it indicate bisiness negatively gearded.it
should be 1.but in previous two year it positivly geared.
This ratio should be at least 1:1, it means value of their current asset cover at least the amount
of their short term obligation .now it increase but less than 1 therefore it should be increase
upto 1.
4.43
Quick Ratio
It measure ability of a company to pay its debts by using its cash & near current asset.if ratio
is 1,it means liquid asset of a business are equal to total debt and business can pay all debts
by using liquid asset.if ratio >1 it means liquid asset of company exceeds debt and company
can pay debt very well.if ratio <1,it means quick asset is not adequate to pay debt .generely
higher quick ratio is preferable.now same ratio of a bank is < 1 so it may be increase to
increase liquidity.
It indicate how much a bank lends out of the deposits. a higher ratio indicate more reliance on
deposite for lending and vice-versa.the regulator dosn't stipulate a minimum or maximum
level for the ratio.but very low ratio indicate banks are not making full use of their resources.
and if ratio is above a certain level it indicate a pressure on resources as well as forcing bank
to raise more capital.in indian scenerio it is 70%.now in previous two year it is adequate but
in current year it is above level so may be bring up to 75%.
Ratio is increase in each financial year ,higher figure indicate that it would be diffcult for a
bank to borrow more fund.it may be reduse.
CHAPTER 5
5.1 FINDINGS
a) In 2011-12 the total debt to equity ratio is more than 1 ,its 2.26 ;it indicate bisiness
negatively gearded.it should be 1.but in previous two year it positivly geared.
b) The current ration increase but less than 1 therefore it should be increase upto 1.
c) The quick ratio may be increase to increase liquidity. As it is less than 1 which is not a
positive sign for bank.
d) Loan To Total Asset ratio is increasing constantly so it must be reduced which will be
good sign for bank.
e) Credit Deposit Ratio was adequate from past two year but present year has increase to
a far extent and it can be improve to further which will be good sign for bank.
f) Long term Debt To Total Laibility Ratio is increase in each financial year ,higher
figure indicate that it would be diffcult for a bank to borrow more fund.it may be
reduse.
g) The bank is working hard on marketing strategy and focusing on Aggressive
marketing through print, online and television media.
h) Core systems modernization has allowed the State Bank of Patiala to centralize
computer processing and operations functions, offer new banking products to all the
citizens of India, reverse a trend of customer attrition, and consolidate its affiliate
banks. Additionally, the bank can now further expand its product offerings and
improve customer service.
i) The recruitment process is performed through State Banks Associates bank
competitive recruitment exam held by state bank group.
5.2 Lesson Learnt
Main tasks
Fundamentally, main task was writing a 50 page project. It might sound petrifying but the
volume of published material available online on SBP, alone. My project was titled The
Financial Analysis of the State Bank Of Patiala.
It sounds awfully vague but with repeated clarifications that I sought from my mentor
coupled with suggestions from my end.
Besides the project, mentor called me from time to time to assist him in his work. I was asked
to prepare some summaries and charts based on some lease deeds and also, asked to help him
fill some forms for SBIs corporate clients all these tasks were mechanical but not very
tedious because I got them infrequently.
The best things AND the bad things
The good things:
a. The lackadaisical nature of the employees thus resulting in no added pressure
on the interns (this might be good or bad depending on how you perceive it).
b. The mentor is an amiable person who will guide you through legal concepts,
SBIs policies and anything else as long as you seem interested to learn.
c. Although interns are asked to stick to the timings, they, in reality are quite
flexible, and you can come late and/or leave early every now and then.
d. It is not mandatory to don a formal attire; the relatively young employees also
wear denims to work.
e. No plagiarism checker for the project.
f. The locality or the proximity to Park Street.
5.3 Suggestion
a) Need to restructure companys policy and follow certain process to overcome
problems.
b) There employees must be get motivated to work as mostly employees are lazy to there
work.
c) The task like job rotation must be done frequently so that everyone know about the
each tasks to be performed.
d) Employees should be more customer friendly and must handle the greviences of
customer.