chapter iii recent scenario of the indian banking...
TRANSCRIPT
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CHAPTER – III
RECENT SCENARIO OF THE INDIAN
BANKING SECTOR
In this chapter an over view of banking services with reference to
recent growth and development in the field of automized way of providing
customer services has been given. Similarly in order to understand the
background of the establishment of the respective selected public sector
banks viz. Canara bank, Indian overseas bank and state bank of India banks
its profile were given in a brief note.
Banking system plays an important role in growth of economy. The
banking sector is the lifeline of any modern economy. It is one of the
important pillars of financial system, which plays a vital role in the success
or failure of an economy. It is a well known fact that banks are one of the
oldest financial intermediaries in the financial system. They play a crucial
role in the mobilization of deposits from the disbursement of credit to
various sectors of the economy. The banking system reflects the economic
health of the country. The strength of the economy of any country basically
hinges on the strength and efficiency of its financial system, which in turn
depends on a sound and solvent banking system.
A banking sector performs three primary function in economy, the
operation of the payment system, the mobilization of savings and the
allocation of saving to investment products. Banking industry has been
changed after reforms process. The government has taken this sector in a
basic priority and this service sector has been changed according to the need
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of present days. Banking sector reforms in India strive to increase efficiency
and profitability of the banking institutions as well as brought the existing
banking institutions face to face with global competition in globalization
process. Different type of banks differs from each other in terms of
operations, efficiency, productivity, profitability and credit efficiency. Indian
banking sector is an important constituent of the Indian Financial System.
The banking sector plays a vital role through promoting business in urban as
well as rural area in recent year, without a sound and effective banking
system, India cannot be considered as a healthy economy.
3.1 ORIGIN OF THE WORD “BANK”
There seems no uniformity amongst the economist about the origin of
the word “Bank“. According to some authors the word “Bank”, itself is
derived from the word “Bancus” or “Banque” that is a bench. The early
bankers, the Jews in Lombardy, transacted their business on benches in the
market place, when, a banker failed, his „Banco‟ was broken up by the
people; it was called „Bankrupt‟. This etymology is however, ridiculed by
mcleod on the ground that “the Italian money changers as such were never
called Banchier in the middle ages.”It is generally said that the word
"BANK" has been originated in Italy. In the middle of 12th century there
was a great financial crisis in Italy due to war. To meet the war expenses, the
government of that period a forced subscribed loan on citizens of the country
at the interest of 5 per cent per annum. Such loans were known as 'Compare',
'minto' etc. The most common name was "Monte'. In Germany the word
'Monte was named as 'Bank' or 'Banke'. According to some writers, the word
'Bank' has been derived from the word bank.
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It is also said that the word 'bank' has been derived from the word
'Banco' which means a bench. The Jews money lenders in Italy used to
transact their business sitting on benches at different market places. When
any of them used to fail to meet his obligations, his 'Banco' or banch or
bench would be broken by the angry creditors. The word 'Bankrupt' seems to
be originated from broken Banco. Since, the banking system has been
originated from money leading business; it is rightly argued that the word
'Bank' has been originated from the word "Banco'.
Today the word bank is used as a comprehensive term for a number of
institutions carrying on certain kinds of financial business. In practice, the
word 'Bank' means which borrows money from one class of people and
again lends money to another class of people for interest or profit.
Actually meaning of bank is not specifies in any regulation or act. In
India, different people have different type of meaning for bank. Normal
salary earner knows means of bank that it is a saving institution, for current
account holder or businessman knows bank as a financial institutions and
many other. Bank is not for profit making, it creates saving activity in salary
earner.
A Bank is an institution which accepts deposits from the general
public and extends loans to the households, the firms and the government.
Banks are those institutions which operate in money. Thus, they are money
traders, with the process of development functions of banks are also
increasing and diversifying now, the banks are not nearly the traders of
money, they also create credit. Their activities are increasing and
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diversifying. Hence it is very difficult to give a universally acceptable
definition of bank.
3.2 HISTORY OF BANKING
The first banks were probably the religious temples of the ancient
world, and were probably established sometime during the third millennium
B.C. Banks probably predated the invention of money. Deposits initially
consisted of grain and later other goods including cattle, agricultural
implements, and eventually Precious metals such as gold, in the form of
easy-to-carry compressed plates. Temples and palaces were the safest places
to store gold as they were constantly attended and well built. As sacred
places, temples presented an extra deterrent to would-be thieves. There are
extant records of loans from the 18th century BC in Babylon that were made
by temple priests/monks to merchants. By the time of Hammurabi`s Code,
banking was well enough developed to justify the promulgation of laws
governing various banking operations.
The fourth century B.C. saw increased use of credit-based banking in
the Mediterranean world. In Egypt, from early times, grain had been used as
a form Money in addition to precious metals, and state granaries functioned
as banks. When Egypt fell under the rule of a Greek dynasty, the Ptolemies
(332-30 B.C.), the numerous scattered government granaries were
transformed into a network of grain banks, centralized in Alexandria where
the main accounts from all the state granary banks were recorded. This
banking network functioned as a trade credit system in which payments were
affected by transfer of fund from one account to another without money
passing.
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3.3 HISTORY OF BANKING SERVICES IN INDIA
(i) Ancient India
The origin of banking in dates back to the Vedic period. There are
repeated references in the Vedic literature to money lending which was quite
common as a side business. Later, during the time of the Smritis, which
followed the Vedic Period and the Epic age, banking become a full-time
business and got diversified with bankers performing most of the functions
of the present day. The Vaish community, who conducted banking business
during this period. As far back as the second or third century Asian
Development. Manu the great Hindu Jurist, devoted a section of his work to
deposits and advances and laid down rules relating to rates of interest to be
charged. Still later, that is during the Buddhist period, banking business was
decentralized and become a matter of volition. Consequently, Brahmins and
Kshatriyas, who were earlier not permitted to take to banking as their
profession except under exceptionally rare circumstances, also took to it as
their business. During this period banking became more specific and
systematic and bills of exchange came in wide use. “Shresthis” or bankers
influential in society and very often acted as royal treasurers.
From the ancient periods in India, an indigenous banking system has
prevailed. The businessmen called Shroffs, Seths, Sahukars, Mahajans,
Chettis etc. had been carrying on the business of banking since ancient
times. These indigenous bankers included very small money lenders to
shroffs with huge businesses, who carried on the large and specialized
business even greater than the business.
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(ii) Mughal Period
Mughal dynasty started with Babur ascending the throne of Agra in
1526 A.D. During Mughal period the indigenous bankers played a very
important role in lending money and financing of foreign trade and
commerce. They were also engaged in the profitable business of money
changing. Banking business was, however particularly during the secular
and settled reign of Emperor Akbar was gave the much needed political
stability to the country. Every city, big or small had a „Sheth‟ also known as
a „Shah‟ or „Shroff‟, who performed a number of banking functions. He was
respected by all parts of people as an important citizen. In Principal cities,
besides shroffs, there was a „Nagar Sheth‟ or „Town Banker‟. They were
instrumental in changing funds from place to place and doing collection
business mainly through Hundis. The Hundis were accepted mode of change
of money for commercial transactions.
(iii) British Period
The seventeenth century witnessed the arrival of English traders in
India. The English traders established their own agency houses at the port
towns of Bombay, Calcutta and Madras. These agency houses, apart from
engaging in trade and commerce, also carried out on the banking business.
The development of the means of transport and communication causing
deflection of trade and commerce along new routes, changing the nature of
trade activities in the country were the other factor which also contributed to
the downfall of the indigenous bankers. Partly to fill the void caused by their
downfall and partly to finance the growing financial requirements of English
trade. The East India Company now came to favor the establishment of the
banking institutions patterned after the Western style.
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lending money discounting and collection bills and various agency services.
They insist higher security for loans.
3.6.4 Old Private Banks
These banks all registered under Indian Companies Act, 1956. Basic
difference between Co-operative banks and Private Banks is its objectives.
The Co-operative banks work for its members and private banks are work
for own profit.
3.6.5 New Private Banks
These banks lead the market of Indian banking business in very short
period because of its variety of services and approach to handle customer
and also because of long working hours and speed of services. This is also
registered under the Company Act 1956. Between old and new private banks
there is wide difference.
3.6.6 Foreign Banks
Foreign Banks mean multi-countries bank. In case of Indian foreign
banks are such banks which open its branch office in India and their head
office are outside of India. E.g. HSBC Bank, City Bank, Standard Chartered
Bank etc.
3.6.7 Co-operative Banks
Co-operative Banks another component of the Indian bank with the
enactment of the Co-operative Credit Societies were sated owing to the
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increasing demand of Co-operative Credit, a new Act of the 1994, which
provide for the increasing demand of Co-operative Central banks by a union
of primary credit societies or by a union of primary credit socialites and
individuals.
3.7 INDIAN BANKING STRUCTURE
The structure of Indian banking system that developed during the pre-
independence period was without any purposive control and direction. There
were no comprehensive banking laws except the Bank Charter Act 1876
which regulated the three presiding bank and the Indian Companies Act
1913 provided some safe guards against bank failures.
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3.8 BANKING SERVICES
In the recent changing scenario, the role of banks is very important for
the growth and development economical conditions of the country. Banking
Sector is offering traditional and other service as under:
- Regular Saving and current accounts
- Regular fixed deposits
- Asynchronous Transfer Mode (ATM) services
- Credit cards
- Demat cards
- Student banking
- Special Non Resident Indian (NRI) Services
- Home loan, Vehicle loan
- Tele and internet banking
- Online trading
- Business multiplies Accounts
- Insurance
- Relief bonds and mutual fund
- Loans against shares
- Retail banking
- Special deposit scheme
- Senior citizen – special deposit scheme
- Other facilities for customers.
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3.9 RETAIL BANKING SERVICES
3.9.1 Credit Cards
A credit card is an instrument, which provides immediate credit
facilities to its holder to avail variety of goods and services at the merchant
outlets. It is made of plastic and hence popularly called as Plastic Money.
Such cards are issued by bank to persons with minimum income ranging
between Rs. 50000 and Rs. 100000 per annum and are accepted by a variety
of business establishments which are notified by the card issuing bank.
Some banks insist on the cardholder being their customers while others do
not. Few banks do not charge any fee for issuing credit cards while others
impose an initial enrolment fee and annual fee also. If the amount is not paid
within the time duration the bank charges a flat interest of 2.5 per cent.
Leading Indian Banks such as: SBI, Bank Of Baroda, Canara Bank,
Industrial Credit Investment Corporation of India, Housing Development
Finance Corporation and a few foreign banks like CITIBANK, Standard
Chartered etc are the important issuers of credit card in India.
3.9.2 Debit Cards
It is a new product introduced in India by Citibank a few years ago in
association with MasterCard. A debit card facilitates purchases or payments
by the cardholder. It debit the money from the account of the cardholder
during each and every transaction. This implies that the cardholder can
spend only if his account having sufficient balance.
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3.9.3 Net Banking
This facilitates the customers to do all their banking transaction and
operations from their home by using the internet facility. With Net Banking
one can carry out all banking and shopping transactions safely and with total
confidentiality. With Net Banking one can easily perform various functions:
a. Check Account Balance
b. Download Account Statement
c. Request for a stop payment of a cheque.
d. Request for a new cheque book.
e. Access demats account
f. Transfer funds.
g. Facilitate bill Payments.
h. Pay Credit Card dues instantly.
3.9.4 Mobile Banking and Phone Banking
Phone and mobile banking are a fairly recent phenomenon for the
Indian banking industry. There exist operative guidelines and restrictions on
the type and quantum of transactions that can be undertaken via this route.
Phone banking channels function through an Interactive Voice Response
System (IVRS) or telebanking executives of the banks. The transactions are
limited to balance enquiries, transaction enquiries, stop payment instructions
on cheques and funds transfers of small amounts in which per transaction
limit is Rs. 2500. According to the draft guidelines on mobile banking, only
banks which are licensed and supervised in India and have a physical
presence in India are allowed to offer mobile banking services. Besides, only
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rupee based services can be offered. Mobile banking services are to be
restricted to bank account and credit card account holders which are Know
Your Customer (KYC) and AMC compliant.
With the rapidly growing mobile penetration in the country, mobile
banking has the potential to become a mass banking channel, with very
minimum investment required by the banks. However, more security issues
need to be addressed before banking can be conducted more freely via this
channel. While using the mobile banking facility a customer can enjoy the
following services.
a. Check Balance
b. Check last three transactions.
c. Request for a statement
d. Request for a cheque book.
e. Enquire on a cheque status.
f. Instruct stock cheque payment.
g. View FD details.
h. Transfer funds.
i. Pay Utility Bills
Phone Banking helps to conduct a wide range of banking transactions
from the comfort of one‟s home or office. Using phone banking facility
offers the following services.
a. Check Balance
b. Check last three transactions.
c. Request for a cheque book.
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d. Transfer funds.
e. Enquire on a cheque status, and much more.
3.9.5 Anywhere Banking
Anywhere Banking is a highly secure and convenient system for
online, real-time inter branch transactions across the Bank. Anywhere
banking offers you greater flexibility, transaction power, convenience and
ease in banking. The benefits of anywhere banking come to light in the
context that it is no longer practically possible to carry money everywhere
we go and also to restrict banking to one branch or open multiple bank
accounts wherever we go. One can deposit or withdraw cash from any
branch of a Particular bank all over the country up to a prescribed limit. One
can also transfer funds.
3.9.6 Automated Teller Machines (ATM)
ATMs feature user-friendly graphic screens with easy to follow
instructions. The ATMs Interact with customers in their local language for
increased convenience. ICICI Bank‟s ATM network is one of the largest and
most widespread ATM network in India. Following are the features
available on ATMs which can be accessed from any whereat anytime:
a. Cash Withdrawal
b. Cash Deposit
c. Balance Enquiry
d. Cheque Book Request
e. Transaction at various merchant establishments
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3.9.7 Smart Card
The smart card, a latest additional to the world of banking and
information technology has emerged as the largest volume driven end-
product in the world due to its data portability, security and convenience.
Smart Card is similar in size to today‟s plastic payment card; it has a
memory chip embedded in it. The chip stores electronic data and
programmes that are protected by advanced security features. When coupled
with a reader, the smart card has the processing power to serve many
different applications. As an access-control device, smart cards make
personal and business data available only to appropriate users. To ensure the
confidentiality of all banking service, smart cards have mechanisms offering
a high degree of security. These mechanisms are based on private and public
key cryptography combined with a digital certificate, one of the most
advanced security techniques currently available. In fact, it is possible to
connect to the web banking service without a smart card.
3.9.8 Electronic Clearing Service (ECS)
The Electronic Clearing Service (ECS) introduced by the RBI in
1995, is akin to the Automated Clearing House system that is operational in
certain other countries like the US. The ECS has two variants viz. ECS debit
clearing and ECS credit clearing service. The ECS credit clearing operates
on the principle of „single debit multiple credits‟ and is used for transactions
like payment of salary, dividend, pension, interest etc. The ECS debit
clearing service operates on the principle of „single credit multiple debits‟
and is used by utility service providers for collection of electricity bills,
telephone bills and other charges and also by banks for collections of
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principal and interest repayments. Settlement under the ECS is undertaken
on T+1 basis. Any ECS user can undertake the transactions by registering
themselves with an approved clearing house.
3.9.9 Electronic Funds Transfer Systems (EFT)
The launch of the electronic funds transfer mechanisms was
operationalised in 1995 covering 15 centres where the Reserve Bank
managed the clearing houses.
Special EFT (SEFT) scheme, a variant of the EFT system, was
introduced with effect from April 1, 2003, in order to increase the coverage
of the scheme and to provide for quicker funds transfers. It was made
available across branches of banks that were computerised and connected
via a network enabling transfer of electronic messages to the receiving
branch in a straight through manner (STP processing). In the case of EFT, all
branches of banks in the 15 locations were part of the scheme, whether they
are networked or not.
A new variant of the EFT called the National EFT (NEFT) was
decided to implemented during (November 2005) so as to broad base the
facilities of EFT. This was a nationwide retail electronic funds transfer
mechanism between the networked branches of banks. The NEFT provided
for integration with the Structured Financial Messaging Solution (SFMS) of
the Indian Financial Network (INFINET). The NEFT uses SFMS for EFT
message creation and transmission from the branch to the bank‟s gateway
and to the NEFT Centre, thereby considerably enhancing the security in the
transfer of funds. While Real Time Gross Settlement (RTGS) is a real time
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gross settlement funds transfer product, NEFT is a deferred net settlement
funds transfer product. As the NEFT system stabilized over time, the number
of settlements in NEFT was increased from the initial two to six. The NEFT
now provides six settlement cycles a day and enables funds transfer to the
beneficiaries account on T+0 basis, bringing it closer to real time settlement.
The commencement of NEFT led to discontinuation of SEFT, and
EFT is now available only for government payments. With the SFMS
facility, branches can participate in both the RTGS and the NEFT System. It
is envisioned that all the RTG Senabled bank branches would be NEFT-
enabled too, so that the customer would have a choice between RTGS or
NEFT, based on time urgency, value of the transaction and different charges
applicable on the two systems. Using the NEFT infrastructure, a one-way
remittance facility from India to Nepal has also been implemented by the
RBI since 15th May 2008.
In order to increase the coverage of NEFT to a wider section of bank
customers in semi-urban and rural areas, an enhancement of the NEFT
called the NEFT-X [National EFT (Extended)] is also proposed for phase
wise implementation. This would facilitate non-networked branches of
banks to transfer funds electronically by accessing NEFT-enabled branches
for transfer of funds. The extended from of NEFT would work on a T+1
basis and would ensure wide rural coverage of the electronic funds transfer
system.
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3.9.10 Performance of Public Sector Banks in India
The information related to deposits, investments and loan and
advances regarding to public sector banks India are presented in Table 3.1.
The Table reveals that significant performance of selected public sector
banks like Canara Bank (CB), State Bank of India (SBI) and Indian
Overseas Bank (IOB). The deposit of the three selected banks are having
increasing trend during the year from 2007-08 to 2011-12. The mean value
of deposits of Canara Bank was Rs.239328.55 crores whereas State Bank of
India got Rs.812234.69 crores and Indian Overseas Bank got Rs.123779.82
crores. The growth rates of the three selected banks are 16.25 percent, 14.20
percent and 16.17 percent respectively. The investment position of these
three banks are marked an increasing trend and its mean value was
Rs.72604.55 crores, Rs.271808.70 crores and Rs.40303.41 crores
respectively. From the research study, among the three selected banks, State
Bank of India has accounted the highest deposits, advances and Investment
when compared to other two banks. The co-efficient of variation found high
variation of deposits, advances and investment in Canara Bank and State
Bank of India and resulted that State Bank of India accounts low variation
among the three variables during the study period. The CAGR of the three
selected banks in three dimensions depicts that a significant growth in loans
and advances of State Bank of India.
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TABLE 3.1
DEPOSITS, ADVANCES AND INVESTMENT
(Rs. In Crores)
Year Deposits Advances Investments
CB SBI IOB CB SBI IOB CB SBI IOB
2007-08 154072.42 537403.94 84325.58 107238.04 416768.20 60423.84 49811.57 189501.27 28474.71
2008-09 186892.51 742073.13 100115.89 138219.40 542503.20 74885.27 57776.90 275953.96 31215.44
2009-10 234651.44 804116.23 110794.71 169334.63 631914.15 79003.93 69676.95 285790.07 37650.56
2010-11 293972.65 933932.81 145228.75 212467.17 756719.45 111832.98 83699.92 295600.57 48610.45
2011-12 327053.73 1043647.36 178434.18 232489.82 867578.89 140724.44 102057.43 312197.61 55565.88
Mean 239328.55 812234.69 123779.82 171949.81 643096.78 93374.09 72604.55 271808.70 40303.41
SD 71975.18 192926.64 37856.27 51572.62 176614.75 32468.61 20847.84 47917.88 11527.11
CV (%) 30.07 23.75 30.58 29.99 27.46 34.77 28.71 17.63 28.60
CAGR
(%) 16.25 14.20 16.17 16.74 15.79 18.42 15.43 10.50 14.31
Source : Annual reports of Canara Bank (CB), State Bank of India (SBI) and Indian Overseas bank (IOB).
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3.10 PROFILE OF THE SELECTED STUDY UNITS
3.10.1 Public Sector Banks
Nationalised banks dominate the banking system in India. The history
of nationalised banks in India dates back to mid-20th century, when Imperial
Bank of India was nationalised (under the SBI Act of 1955) and re-
christened as State Bank of India (SBI) in July 1955. Then on 19th July
1960, its seven subsidiaries were also nationalised with deposits over 200
crores. These subsidiaries of SBI were State Bank of Bikaner and Jaipur
(SBBJ), State Bank of Hyderabad (SBH), State Bank of Indore (SBIR), State
Bank of Mysore (SBM), State Bank of Patiala (SBP), State Bank of
Saurashtra (SBS), and State Bank of Travancore (SBT).
However, the major nationalisation of banks happened in 1969 by the
former Prime Minister of the counting Mrs.Indira Gandhi. The major
objective behind nationalisation was to spread banking infrastructure in rural
areas and make cheap finance available to Indian farmers. The nationalised
14 major commercial banks were Allahabad Bank, Andhra Bank, Bank of
Baroda, Bank of India, Bank of Maharashtra, Canara Bank, Central Bank of
India, Corporation Bank, Dena Bank, Indian Bank, Indian Overseas Bank,
Oriental Bank of Commerce (OBC), Punjab and Sind Bank, Punjab National
Bank (PNB), Syndicate Bank, UCO Bank, Union Bank of India, United
Bank of India (UBI), and Vijaya Bank.
In the year 1980, the second phase of nationalisation of Indian banks
took place, in which seven more banks were nationalised with deposits over
200 crores. With this, the Government of India held a control over 91 per
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cent of the banking industry in India. After the nationalisation of banks there
was a huge jump in the deposits and advances with the banks. At present, the
State Bank of India is the largest commercial bank of India and is ranked
one of the top five banks worldwide. It serves 90 million customers through
a network of 9,000 branches.
3.11 CANARA BANK
Founded as 'Canara Bank Hindu Permanent Fund' in 1906, by late
Shri Ammembal Subba Rao Pai, a philanthropist, this small seed blossomed
into a limited company as 'Canara Bank Ltd.' in 1910 and became Canara
Bank in 1969 after nationalization
(i) Founding Principles
1. To remove superstition and ignorance.
2. To spread education among all to sub-serve the first principle.
3. To inculcate the habit of thrift and savings.
4. To transform the financial institution not only as the financial heart of
the community but the social heart as well.
5. To assist the needy.
6. To work with sense of service and dedication.
7. To develop a concern for fellow human being and sensitivity to the
surroundings with a view to make changes/remove hardships and
sufferings.
Sound founding principles, enlightened leadership, unique work
culture and remarkable adaptability to changing banking environment have
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enabled Canara Bank to be a frontline banking institution with global
standards.
Widely known for customer centricity, Canara Bank was founded by
Shri Ammembal Subba Rao Pai, a great visionary and philanthropist, in July
1906, at Mangalore, then a small port town in Karnataka. The bank has gone
through the various phases of its growth trajectory over hundred years of its
existence. Growth of Canara Bank was phenomenal, especially after
nationalization in the year 1969, attaining the status of a national level player
in terms of geographical reach and clientele segments. Eighties was
characterized by business diversification for the Bank. In June 2006, the
bank completed a century of operation in the Indian banking industry. The
eventful journey of the bank has been characterized by several memorable
milestones. Today, Canara Bank occupies a premier position in the comity
of Indian banks. With an unbroken record of profits since its inception,
Canara Bank has several firsts to its credit. These include:
Launching of Inter-City ATM Network
Obtaining ISO Certification for a Branch
Articulation of „Good Banking‟ – Bank‟s Citizen Charter
Commissioning of Exclusive Mahila Banking Branch
Launching of Exclusive Subsidiary for IT Consultancy
Issuing credit card for farmers
Providing Agricultural Consultancy Services
Over the years, the bank has been scaling up its market position to
emerge as a major 'Financial Conglomerate' with as many as nine
subsidiaries/sponsored institutions/joint ventures in India and abroad. As at
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September 2012, the bank has further expanded its domestic presence, with
3650 branches spread across all geographical segments. Keeping customer
convenience at the forefront, the bank provides a wide array of alternative
delivery channels that include 3184 ATMs, covering 1182 centres. Several
IT initiatives have been undertaken during the year, which include Funds
Transfer through Interbank Mobile Payment Services (IMPS) in ATMs,
Applications Supported by Blocked Amount (ASBA) facility to net banking
users, E-filing of tax returns and facility for viewing details of tax deducted
at source, Terminal at 223 branches for customers to use net banking,
SMS/e-mail alerts for all transactions done through ATM, net banking, Psot
office Service (POS), mobile banking, online payments irrespective of
amounts, online loan applications and tracking facility, generation of
automatic pass sheets through e-mail and automatic renewal of term
deposits. Under government business, the bank has implemented internet
based application for University Grand Commission (UGC) Maulana Azad
National Fellowship Scheme, Web portal for National Scheme for Girl Child
Secondary Education, Electronic Accounting Systems of e-Receipts-
Customs (EASeR-C) for collection of customs duty and e-payment of
commercial taxes module for Uttar Pradesh, Karnataka, Delhi and Tamil
Nadu.
(ii) Vision
To emerge as a „Best Practices Bank‟ by pursuing global benchmarks
in profitability, operational efficiency, asset quality, risk management and
expanding the global reach.
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(iii) Mission
To provide quality banking services with enhanced customer
orientation, higher value creation for stakeholders and to continue as a
responsive corporate social citizen by effectively blending commercial
pursuits with social banking.
3.11.1 Awards and Achievements
Awards and Achievements during 2012-13
Canara Bank received second Runner Up award for 'Best Online
Bank' among Public Sector Banks at Indian Banking Assocition(IBA)
Banking Technology Awards 2011.
Canara Bank received second Runner Up award for 'Best Customer
Relationship Initiative' among Public Sector Banks at IBA Banking
Technology Awards 2011
Canara Bank received Institute for Development & Research in
Banking Technology (IDRBT) Best Bank Award Among Large Banks
For "Use of Technology for Financial Inclusion" from the hands of the
RBI Governor Dr. D Subbarao.
3.11.2 Significant Milestones in the performance
Year Milestones
1st July
1906
Canara Hindu Permanent Fund Limited formally registered with
a capital of 2000 shares of 50/- each, with 4 employees.
1910 Canara Hindu Permanent Fund renamed as Canara Bank
Limited
1969 14 major banks in the country, including Canara Bank,
nationalized on 19th July 1969.
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Year Milestones
1976 1000th branch inaugurated
1983 Overseas branch at London inaugurated Cancard (the Bank‟s
credit card) launched.
1984 Merger with the Laksmi Commercial Bank Limited
1985 Commissioning of Indo Hong Kong International Finance
Limited
1987 Canbank Mutual Fund and Canfin Homes launched
1989 Canbank Venture Capital Fund started
1989-90 Canbank Factors Limited, the factoring subsidiary launched
1992-93 Became the first Bank to articulate and adopt the directive
principles of “Good Banking”.
1995-96 Became the first Bank to be conferred with ISO 9002
certification for one of its branches in Bangalore
2001-02 Opened a 'Mahila Banking Branch', first of its kind at
Bangalore, for catering exclusively to the financial requirements
of women clientele.
2002-03 Maiden Initial Public Offering of the Bank
2003-04 Launched Internet Banking Services
2004-05 100 per cent Branch computerization
2005-06 Entered 100th Year in Banking Service. Launched Core
Banking Solution in select branches. Number One Position in
Aggregate Business among Nationalized Banks.
2006-07 Retained Number One Position in Aggregate Business among
Nationalized Banks. Signed Memorandum of Understanding
(MoU) for Commissioning Two Joint Ventures in Insurance and
Asset Management with international majors viz., HSBC (Asia
Pacific) Holding and Robeco Groep Net Value respectively.
2007-08 Launching of New Brand Identity. Incorporation of Insurance
and Asset Management Joint Venture. Launching of 'Online
Trading' portal. Launching of a „Call Centre‟. Switchover to
Basel II New Capital Adequacy Framework.
2008-09 The Bank crossed the coveted 3 lakh crore in aggregate
business. The Bank‟s 3rd foreign branch at Shanghai
commissioned.
2009-10 The Bank‟s aggregate business crossed 4 lakh crore mark.
Net profit of the Bank crossed 3000 crore. The Bank‟s branch
network crossed the 3000 mark.
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Year Milestones
2010-11 The Bank‟s aggregate business crossed 5 lakh crore mark. Net
profit of the Bank crossed 4000 crore. 100 per cent coverage
under Core Banking Solution. The Bank‟s 4th foreign branch at
Leicester and a Representative office at Sharjah, UAE, opened.
The Bank raised 1993 crore under QIP. Govt. holding reduced
to 67.72 per cent post QIP.
2011-12 Total number of branches reached 3600. The Bank‟s 5th foreign
branch at Manama, Bahrain opened.
As at September 2012, the total business volume of the bank stood at
Rs.552513 crore.
3.12 INDIAN OVERSEAS BANK (IOB)
The Indian Overseas Bank (IOB) (BSE: 532388) is a major bank
based in Chennai (Madras), with more than 2650 domestic branches, 3
extension counters and six branches overseas as of 31st March 2012. It has
an ISO certified in-house Information Technology department, which has
developed the software that 2650 branches use to provide online banking to
customers; the bank has achieved 100 per cent networking status as well as
100 per cent CBS status for its branches. IOB also has a network of about
1433 ATMs all over India and IOB's International VISA Debit Card is
accepted at all ATMs belonging to the Cash Tree and NFS networks. Indian
Overseas Bank offers internet Banking (E-See Banking) and Mobile
Banking and is one of the banks that the Government of India has approved
for online payment of taxes. The bank's business more than doubled in the
last four years.
The net profit for the year ended March 31, 2012 stood at Rs 1,050.13
crore. The total income stood at Rs 19,578.13 crore as against Rs 13,326.56
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crore registered during the same period last financial year. For the full year,
the total business grew by 24 per cent to Rs. 3,21,707 crore from
Rs. 2,59,020 crore. Indian Overseas Bank has planned to achieve total
business of Rs. 3,85,000 crore to Rs 4,00,000 lakh crore this fiscal.
3.12.1 History of IOB
1937 Shri. M. Ct. M. Chidambaram Chettyar establishes the Indian
Overseas Bank (IOB) to encourage overseas banking and foreign exchange
operations. IOB started up simultaneously at three branches, one each in
Karaikudi, Madras (Chennai) and Rangoon (Yangon). It then quickly opened
a branch in Penang and another in Singapore.
Indian Overseas Bank was the first bank to venture into consumer
credit, as it introduced the popular Personal Loan scheme. In 1964, the bank
started computerization in the areas of inter-branch reconciliation and
provident fund accounts. Indian Overseas Bank was one of the 14 major
banks which were nationalized in 1969. After nationalization, the bank
emphasized on opening its branches in rural parts of India. In 1979, IOB
opened a Foreign Currency Banking Unit in the free trade zone in Colombo.
In the year 2000, Indian Overseas Band undertook an Initial Public
Offering (IPO) that brought the government's share in the bank's equity
down to 75 per cent. The equity shares of IOB are listed in the Madras Stock
Exchange (Regional), Bombay Stock Exchange, and National Stock
Exchange of India Limited, Mumbai. Since its inception, the IOB has
absorbed various banks including the latest - Bharat Overseas Bank - in
2007.
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The Bank's IT department has developed software, which is used by
its 1200 branches to provide online banking to customers. Indian Overseas
Bank also has a network of about 500 ATMs throughout India. Its
International VISA Debit Card is accepted at all ATMs belonging to the
Cash Tree and NFS networks. IOB also offers Internet Banking; it's one of
the banks that the Government of India has approved for online payment of
taxes.
Indian Overseas Bank offers investment options like Mutual Funds
and Shares. It provides a wide range of consumer and commercial banking
services, including Savings Account, Current Account, Depositary Services,
VISA Cards, Credit Cards, Debit Cards, Online Banking, Any Branch
Banking, Home Loans, NRI Account, Agricultural Loans, Payment of Bills /
Taxes, Provident Fund Scheme, Forex Collection Services, Retail Loans,
etc.
(i) Corporate Vision
"To emerge as the most competitive Bank in the Industry"
(ii) Meaning of Logo
"Our logo aims at vertical growth with horizontal expansion of our
customer base"
(iii) Mission
IOB aims to become the most competitive bank in the industry in the
country during the next two years. If the bank is competitive, it is also
responsive to the challenges of the market force. In this process, it will also
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emerge as the most profitable bank by cutting cost and increasing revenue.
Thus, by being competitive, the bank would be able to achieve all the other
desirable goals.
3.12.2 Milestones and Landmarks
Since the early 1990s when the financial and banking reforms were
initiated, the bank has crossed many milestones and grown from strength to
strength by expanding the branch net work, enhancing and diversifying
business, raising capital from the market and, in recent years, launching a
series of new products and services. The achievements in recent years have
been, truly, landmarks.
1996, Bank's profit crosses Rs. 100 Crores for the first time.
2000, the bank made a successful debut in raising capital from the
public. The issue was oversubscribed 1.87 times despite a subdued
market.
2005, launch of the Multicity Cheque facility.
2005, launch of the International Debit Card
2006, commercial and institutional branch, Chennai which was the
1000th
branch crossed Rs. 1000 Crore mark in advances.
2006, launch of IOB Visa Card.
2006, the bank crossed the Rs. 1 lakh crore in total business.
3.12.3 Overseas Expansion
The bank has 6 fully operational branches overseas – two in Hong
Kong and one each in Singapore, South Korea (Seoul) and Sri Lanka
(Colombo). The bank has representative offices in Guangzhou (China),
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Kuala Lumpur (Malaysia), Dubai and Abu Dhabi (UAE). The bank has an
Extension Counter at New Kadhiresan Temple, Colombo and a remittance
centre at Singapore. The bank plans to open a branch in New Zeal and
representative office in Vietnam
3.12.4 Products and Services
The Indian Overseas Bank (IOB) Bank offers wide variety of deposit
products to suit your requirements. Coupled with convenience of networked
branches/ ATMs and facility of E-channels like Internet and Mobile
Banking, IOB Bank brings banking at your doorstep. Select any of our
deposit products and provide your details online and our representative will
contact you for account opening
(i) Various Deposits Schemes
(ii) Grantinty Loan‟s and Advance
(iii) NRI Accounts
(iv) Corporate Banking
(v) Rural
(vi) Other Services and Products
(vii) Secondary Function of the Bank
(viii) Credit Cards
(ix) Debit Cards
(x) Travel Card
(xi) Pre Paid Cards
(xii) IOB Bank Pure Gold
(xiii) Insurance Linked Retail Products
(xiv) Government Business
(xv) Service Availabilities at Free of Charges
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3.13 STATE BANK OF INDIA
The origin of the State Bank of India goes back to the first decade of
the nineteenth century with the establishment of the Bank of Calcutta in
Calcutta on 2nd
June 1806. Three years later the bank received its charter and
was re-designed as the Bank of Bengal (2nd
January 1809). A unique
institution, it was the first joint-stock bank of British India sponsored by the
government of Bengal. The Bank of Bombay (15th
April 1840) and the Bank
of Madras (1st July 1843) followed the Bank of Bengal. These three banks
remained at the apex of modern banking in India till their amalgamation as
the Imperial Bank of India on 27th
January 1921.
Primarily Anglo-Indian creations, the three presidency banks came
into existence either as a result of the compulsions of imperial finance or by
the felt needs of local European commerce and were not imposed from
outside in an arbitrary manner to modernise India's economy. Their
evolution was, however, shaped by ideas called from similar developments
in Europe and England, and was influenced by changes occurring in the
structure of both the local trading environment and those in the relations of
the Indian economy to the economy of Europe and the global economic
framework.
3.13.1 History of the Bank
State Bank of India is the largest state-owned banking and financial
services sector in the country. The bank provides banking services to the
customer. In addition to the banking services, the bank through their
subsidiaries, provides a range of financial services, which include life
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insurance, merchant banking, mutual funds, credit card, factoring, security
trading, pension fund management and primary dealership in the money
market. The bank operates in four business segments, namely Treasury,
Corporate/ wholesale Banking, Retail Banking and Other Banking Business.
The treasury segment includes the investment portfolio and trading in
foreign exchange contracts and derivative contracts.
The Corporate/ Wholesale Banking segment comprises the lending
activities of Corporate Accounts Group, Mid Corporate Accounts Group and
Stressed Assets Management Group. The Retail Banking segment consists
of branches in National Banking Group, which primarily includes personal
banking activities, including lending activities to corporate customers having
banking relations with branches in the National Banking Group. The SBI
provides a range of banking products through their vast network of branches
in India and overseas, including products aimed at NRIs. The State Bank
Group, with over 16,000 branches, has the largest banking branch network
in India.
The State bank of India is the 10th most reputed company in the world
according to Forbes. The bank has 156 overseas branches spread over 32
countries. They have branches of the parent in Colombo, Dhaka, Frankfurt,
Hong Kong, Johannesburg, London and environs, Los Angeles, Male in the
Maldives, Muscat, New York, Osaka, Sydney, and Tokyo. They have
offshore banking units in the Bahamas, Bahrain, and Singapore, and
representative offices in Bhutan and Cape Town. It was incorporated in the
year 1955. The bank traces their ancestry to British India, through the
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Imperial Bank of India, to the founding in 1806 of the Bank of Calcutta,
making them the oldest commercial bank in the Indian Sub-continent.
The government of India nationalized the Imperial Bank of India in
the year 1955, with the Reserve Bank of India taking a 60 per cent stake, and
name was changed to State Bank of India. In the year 2001, the SBI Life
Insurance Company was started by the Bank. They are the only Bank that
have been permitted 74 per cent stake in the insurance business. The Bank's
insurance subsidiary 'SBI Life Insurance Company' is a joint venture with
Cardif S.A in which Cardif holds 26 per cent of the stake. During the year
2005-06, the bank introduced 'SBI e-tax' an online tax payments facility for
direct and indirect tax payment. They also launched the centralized pension
processing. The bank made a partnership with Tata Consultancy Services for
setup C-Edg Technologies and consulting services to the banking, financial
services and insurance industry.
The bank was noted as 'The most preferred bank' in a survey by TV
18 in association with AC Nielsen-ORG Marg. Also, the Bank was voted as
'The most preferred housing loan provider' in AWAAZ consumer awards for
the year 2006. In the customer loyalty survey 2006-07 conducted by
'Business World', the SBI was ranked number one in all parameters of
customer satisfaction, service orientation, customer care/ call center,
customer loyalty and home loans. The SBI Funds was judged 'Mutual fund
of the year' by CNBC/TV-18/CRISL.
The bank introduced new products and services such as web-based
remittance, instant fund transfer, online-trading and comprehensive cash
management. During the year 2007-08, the bank launched 965 branches all
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over the country. They inaugurated a new state-of-the art Dealing Room
with online connectivity to all active forex intensive branches at Corporate
Centre in Mumbai. They launched a new product, Construction Equipment
Loan to cater to construction Companies. Also, they introduced new
products such as SBI Reverse Mortgage Loan and SBI Home Plus in the
areas of Home Loans. During the year, the RBI transferred their entire
shareholding in the Bank representing 59.73 per cent of the issued capital of
the Bank to the Government of India. The Bank acquired 92.03 per cent of
equity of Global Trade Finance Ltd. Consequently, GTFL became a
subsidiary of the bank. They signed an Memorandum of Under standing
with the Indian railways for installing ATMs at 682 railway stations.
In March 2008, it opened their 10,000th branch and became only the
second bank in the world to have more than 10,000 branches after China's
ICBC. During the year 2008-09, the company launched Import factoring, a
new product in association with SBI Factors and Commercial Services
Limited. They increased the number of branches for retail sale of gold coins
from 250 to 518. Also, they re-launched Gold Deposit Scheme at 50
branches to mobilize gold from domestic market for deployment as metal
loans to jewellers. During the year, the Bank opened their 11,111th Branch
at Sonapur (Kamrup District) in Assam. They introduced three new products
viz., SBI Special Home Loan, SBI Happy Home Loan and SBI Lifestyle in
response to the stimulus package announced by the government of India.
Also, they entered into an exclusive arrangement with TATA Motors for
handling the booking process of TATA 'Nano' cars. During the year, the
bank launched on their web-site an on-line application form for registering
Auto Loan enquiries and expeditiously monitoring and converting these
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leads into Auto Loans. Also, they launched 'e-invest' for the ASBA
(Applications Supported by Blocked Accounts) to aid investors for their
equity subscriptions, IPO and Rights applications.
During the year, the bank set up a custodial services company namely
SBI Custodial Services Private Limited in joint venture with Societe
Generale, France. They signed letter of intent for setting up of joint venture
company for undertaking General Insurance Business. Also, they divested
10 per cent equity stake in its wholly owned subsidiary SBI Pension Fund
Private Limited at cost in favour of its subsidiaries. In October 2008, the
Bank signed an Memorandum of Understanding with State General Reserve
Fund (SGRF) of Oman, for a general purpose private equity fund. During
the year, State Bank of Saurashtra (SBS), a wholly owned subsidiary of the
bank, amalgamated with the bank with effect from August 13, 2008. They
signed a joint venture agreement with Insurance Australia Group for
undertaking General Insurance business.
Also, they signed a joint venture agreement with Macquarie Capital
Group, Australia and International Finance Corporation, Washington for
setting up an Infrastructure fund of United States Dollar 3 billion for
investing in various infrastructure projects in India. During the year 2009-
10, the Bank opened 1,049 branches, out of which branches were opened in
metro and urban areas with a view to increase the Bank's reach and be more
accessible to customers. In July 2009, SBI introduced 'SBI Loan to Affluent
Pensioners' enabling the government pensioners to avail personal loans upto
Rs 3 lakh. During the year, the Bank designed a special package, the
Defence Salary Package, for personnel of the three Armed Forces i.e. the
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Army, Navy and Air Force who maintain their Salary accounts with them.
As of March 2010, the Bank had 12,496 branches and 21,485 Group ATMs.
In June 2009, the company increased their shareholding in Nepal SBI Bank
Ltd to 55.02 percent and thus Nepal SBI Bank Ltd became a subsidiary of
the Bank with effect from 14th
June, 2009. In May 2010, the Bank selected
consortium of Elavon Incorporation, USA and Visa International, USA as
their Joint Venture (JV) partner for Merchant Acquiring Business.
They set up a wholly owned subsidiary, namely SBI Payment
Services Private Limited for conducting Merchant Acquiring Business. In
August 2010, State Bank of Indore was amalgamated with the Bank as per
the scheme of amalgamation approved by the Central Board. During the year
2010-11, the Bank introduced 2 new products, namely 'Pushpa Ullas' and
'Arthias Plus' on pilot basis. They made substantial progress in establishing
itself as a leading Personal Expenditure fund player of the country. Also,
they also signed a Joint Venture agreement with State General Reserve Fund
(SGRF) of Sultanate of Oman, a sovereign entity, to set up a general purpose
private equity fund with an initial corpus of United States Dollar 100 mn,
expandable further to USD 1.5 billion. During the year, the Bank opened
576 new branches besides merger of 470 branches of erstwhile State Bank of
Indore. Also, they opened 14 foreign offices during the year, taking the total
to 156. In July 1, 2010, the bank launched their 'Green Channel Counter' at
select branches across the country.
In General Insurance business, the bank launched limited operations
in April 2010 for the Corporate and Mid Corporate customers based at
Mumbai, and it was expanded to six other major locations in July 2010. In
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the Retail segment, the bank launched their Long Term Home Insurance
business at Mumbai during October 2010, which was gradually extended to
cover 56 Retail Assets Central Processing Centres (RACPC) and Retail
Assets and Small and Medium Scale Enterprises Centralized Credit Cell
(RASMECC). General Insurance SME business was launched on a pilot
basis in Mumbai and Chennai in February 2011. During the first quarter of
the financial year 2011-12, the government of India issued the 'Acquisition
of State Bank of India Commercial and International Bank Limited. vide
notification dated 29th July, 2011. Consequent to the said notification, the
undertaking of State Bank of India Commercial and International stands
transferred to and vest in State Bank of India with effect from 29th
July,
2011.
(i) Logo and slogan
The logo of the State Bank of India is a blue circle with a small cut in the
bottom that depicts perfection and the small man the common man -
being the center of the bank's business.
Slogans: "PURE BANKING, NOTHING ELSE", "WITH YOU - ALL
THE WAY", "A BANK OF THE COMMON MAN", "THE BANKER
TO EVERY INDIAN", "THE NATION BANKS ON US".
(ii) Other SBI service points
The SBI has 27,000+ ATMs (25,000th ATM was inaugurated by the
then Chairman of State Bank Shri O.P. Bhatt on 31 March 2011, the day of
his retirement); and SBI group (including associate banks) has about 45,000
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ATMs. The SBI has become the first bank to install an ATM at Drass in the
Jammu and Kashmir Kargil region. This was the Bank's 27,032nd ATM on
27th July 2012.
3.13.2 Recent Awards and Recognitions
Best Online Banking Award, Best Customer Initiative Award and
Best Risk Management Award (Runner Up) by IBA Banking
Technology Awards 2010
The Bank of the year 2009, India (won the second year in a row) by
The Banker Magazine
Best Bank – Large and Most Socially Responsible Bank by the
Business Bank Awards 2009
Best Bank 2009 by Business India
The Most Trusted Brand 2009 by The Economic Times.
Most Preferred Bank and Most preferred Home loan provider by
CNBC
Visionaries of Financial Inclusion By Financial Information Network
and Operations
Technology Bank of the Year by IBA Banking Technology Awards.
SKOCH Award 2010 for Virtual corporation Category for its
e-payment solution.
The Brand Trust Report:11th most trusted brand in Hindustan.
3.14 ERODE DISTRICT PROFILE
Erode District lies on the extreme north of Tamil Nadu. Erode District
is essentially a land-locked area having no sea-cost of its own. Erode District
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is situated between 10 36” and 11 58” North Latitude and between 76 49”
and 77 58” East Longitude.
3.14.1 Brief History of the District and Its Formation
Erode District was a part of Coimbatore , it had formed a part of the
ancient Kongu Kingdom known as "Kongu Nadu" whose history of which
dates back to the Sangam era .
(i) Jurisdictional Changes:
Erode District came into being as a result of the bifurcation of
Coimbatore District, through the G.O.Ms.No.1917, Revenue
dated 31.08.1979. Now Erode District consists of 5 taluks viz.,
Sathyamangalam, Bhavani, Gobichettipalayam, Perundurai and Erode.
There are 4 Municipalities in the district viz., Sathyamangalam, Bhavani,
Gobichettipalayam, and Punjai Puliampatti. The other four Municipalities in
the district viz. Periasemur, Kasipalayam, Surampatti and Veerappanchatram
have been merged recently with Erode Corporation. There are 42 Town
Panchayats, 230 Village Panchayats and 375 Revenue Villages. There are 14
Community Development Blocks in the district.
3.14.2 Demographics
Erode district had a population of 22,59,608 as of 2011 Census. Erode
is the largest town in the district followed by Gobichettipalayam which is
another major taluk next to Erode. The following table reveals the
comparative position of Erode city according to both 2000-01 and 2010-11
census.
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Description 2010-11 2000-01
Actual Population 2259608 2016582
Male 1134191 1024732
Female 1125417 991850
Population Growth 0.1205 0.1185
Density/km2 397 354
Proportion to Tamil Nadu Population 0.0313 0.0323
Sex Ratio (Per 1000 males) 992 968
Average Literacy 72.96 65.44
Total Child Population (0-6 Age) 181188 200853
Literates 1516380 1188228
(i) Geography
The district is bounded by Chamarajanagar district of Karnataka in the
north, and by Kaveri River in the east. Across the Kaveri lies Salem,
Namakkal and Karur districts. Tirupur District lies immediately in the south,
and Coimbatore and the Nilgiris district lies in the west.
(ii) Climate and Rainfall
The district in general is characterised with a scanty rainfall and a dry
climate. Maximum rainfall is recorded in Gobichettipalayam and Bhavani
taluks. Unlike Coimbatore Erode District has dry weather throughout except
the monsoon season.
(iii) Soils
The soils of the district are mostly red sand and gravel with moderate
quantity of red-loam and occasional black loam tracts. Soils of Bhavani,
Erode and Perundurai taluks are chiefly gravelly and stony of the red variety.
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(iv) Minerals
Though the district cannot boost of great mineral wealth, both opaque
and translucent varieties of fine quality of Feldspar is found abundantly in
Erode taluk. Mica, Muscovite and Asbestos are also found in small
quantities in Erode district.
(v) Rivers
Bhavani, Cauvery and Noyyal are the main rivers of the district. This
river runs for over hundred miles through Erode District traversing through
Bhavani and Gobichettipalayam taluks. .
(vi) Forests
With more than 228,750 hectares of land under dense forest, Erode is
one of the few fortunate districts in the State which can boost of extensive
forest area. 27.7% of the total district area is under forests.
(vii) Land and Land use pattern
As per revenue land records, the total geographical area of the district
is 572,264 hectares. Of those 199,389 hectares have been brought under
cultivation as net area sown. Total cropped area is 224,786 hectares i.e.
39.2% of the total area in the district. Forests account for 227,511 hectares
i.e. 39% of the total area. .
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(viii) Agriculture
The publicity and developmental activities launched by the
agricultural institutions in Coimbatore penetrated far and wide in Erode
District. Among condiments and spices, turmeric and chillies are significant.
Cultivation of turmeric extends over 14533 hectares. Among other non-food
crops raised here, the most important items are cotton, sugarcane and
tobacco, sugarcane is raised in 30903 hectares.
(ix) Irrigation
The net area irrigated in the district totals to 209,432 hectares. Rivers
in the western ghats are fed mostly by the south-west monsoon and are the
chief sources of irrigation in the district.
(x) Fisheries
In Erode District, Inland fisheries is the only resource of fishermen.
Being a landlocked district, there are no chances for marine fishing.
(xi) Animal Husbandry
There are three major breeds of cattle in the District. They are the
Burgur breed, the Kollegal variety and the Alanbodies. Erode has carved out
an enviable position for itself in the field of dairy development industry in
the State. .
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(xii) Industries and Trade
In the Industrial map of Tamil Nadu, Erode district has a place of
unique importance with 40.32 percent of population depending on non-
agricultural sector.
(xiii) Transport and Communication
The transport and communication system in Erode district is well
developed. Erode being one of the prominent trading centres in the State is
well connected with all modern means of transport and communication
except for air service. There are two postal Divisions serving the district
with their headquarters at Erode and Tiruppur.
(xiv) Education and Health
In the field of education also, Erode District has recorded remarkable
achievement. There are a number of well established schools and colleges
preparing students for the usual degree and post-graduate degree courses in
various branches of science and humanities. There is a Medical College at
Perundurai run by the Road Transport Corporation.
(xv) Places of Historical, Religious and Archaeological importance
There are nearly 487 temples in Erode District. They are situated in
four taluks, Bhavani, Gobichettipalayam, Erode, Sathyamangalam,
Perundurai.
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(xvi) Administration
Erode District is separated into 2 revenue divisions namely: Erode and
Gobichettipalayam. This district is divided into 6 taluks namely: Anthiyur,
Bhavani, Erode, Gobichettipalayam, Perundurai and Sathyamangalam.
(xvii) Politics
Erode District is divided between 3 Parliamentary Constituencies
namely: Erode, Nilgiris and Tirupur. The district consists of 8 assembly
constituencies namely Anthiyur, Bhavani, Bhavani Sagar, Erode East, Erode
West, Gobichettipalayam, Modakurichi and Perundurai.
(xviii) Economy
Agriculture is the most important income source of this district.
Paddy, Plantain, Groundnut, cotton, turmeric, coconut and sugarcane are
some of the agricultural products. With 43% share, the district is the top
turmeric producer in Tamil Nadu. Erode is also known as "The Turmeric
City".
(xix) Industries
Erode district is one among the industrialized district in Tamilnadu
and it is fifth among the districts in Tamilnadu as far as MSME concerned.
There are 18011 registered SSI/MSME Enterprises as on 31.03.2011 in the
district.
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(xx) Area of Food product Concentration
Food products are concentrated at Erode, Perundurai. Beverages are
concentrated in all the 3 blocks of Erode Taluk namely, Modakurichi, Erode
and Kodumudi.
(xxi) Small Scale Service and Business Enterprises
Like the MSME Service sector has also grown considerably in this
district. There are 12683 Service Enterprises as on 31.03.2011 in this
District.
(xxii) Large Scale Industries
There are 64 Large Scale Industries in this district. Most of the
Enterprises are cotton textiles. And 31 enterprises are textile industries.
(xxiii) Industrial Cooperative Sector
At present there are 8 such industrial cooperatives with a total
membership of 565 numbers operating in this district.
(xxiv) Cottage Industries
In Erode District there is 7605 Enterprise registered under the cottage
industries as on 31.03.2011 and they are providing employment to 12974
persons.
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(xxv) Handicraft Units
Erode is well known for hand-loom, power-loom textile products and
ready-made garments and hence it is called Powerloom City of India.
3.14.3 Banking Development
Banking Developments in Erode District is made based on Banking
Statistics as at March 2010 & March 2011-12.
(i) Branch Expansion
The number of Commercial bank branches in the district are 239 as on
March 2011 comprises of the following branches.
State Bank group - 33 Branches
Nationalised Banks - 112 Branches
Private sector Banks - 67 Branches
Co-opertive banks - 21 Branches
Pallavan Gramin Bank - 6 Branches
Among the above, three specialised branches are functioning to cater
to the needs of Small Scale Industries. They are:
1. Canara Bank at Perundurai
2. State Bank of India at Bhavani
3. Indian Overseas Bank at Erode
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In the Co-operative Sector, Erode Central Co-operative Bank has 21
branches which are functioning in Erode district. The State Finance
Corporation has got a TIIC branch at Erode. Besides these, REPCO and
TAICO bank are functioning in Erode Town.
(ii) Deposits
The Total Deposit of all Banks in Erode District as at March 2011
stood at Rs 7573.42 Crores. The deposit which was Rs. 6402.02 cr as on
March 2010.
March 2010 : Rs 6402.02 cr
March 2011 : Rs 7573.42 cr
(iii) Advances
The total advances is Rs.8981.97crore on march 2011. The total
advance was Rs 7337.65 cr as at March 2010.
March 2010 : Rs 7337.65 cr
March 2011 : Rs 8981.97 cr
(iv) Advances to Priority Sector
The total advances to priority sector is Rs.5146.79crore on March
2011. The total advance to priority sector was Rs 4203.52 cr as at March
2010.
March 2010 : Rs 4203.52 cr
March 2011 : Rs 5146.79 cr
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(v) Credit Deposit Ratio
The CD ratio 118% as on March 2010, 115% as on March 2011.
(vi) Agriculture Advances
The Total outstanding under Agriculture advances as follows.
March 2010 Rs 1881.60 cr
March 2011 Rs 2318.75 cr
Agri. advance constitutes 47% of total priority advances.
(vii) Micro and SME
Micro and SME sector also show an upward growth and the
outstanding advances as on March 2011 stood at Rs 1496.12 cr
March 2010 : Rs.1214.08 cr
March 2011 : Rs.1492.12 cr
(viii) Advances to Weaker Section
The weaker section advances as on March 2011 stood at 819.52 CR.
Advances to SC/ST, weaker sections, minority communities have also
shown marked growth.
(ix) Government Sponsored Schemes
Erode District has an excellent Track Record of performing over and
above the targets fixed under all government sponsored schemes over the
years. Thanks to all the bank branches, District coordinators, District
administration and department officials who made this achievement
possible.
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