corporation bank mp birla internship

8/12/2019 Corporation Bank Mp Birla Internship

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COMPANY NAME

INDUSTRY PROFILE

BANKING

Without a sound and effective banking system in India it cannot have a healthy

economy. The banking system of India should not only be hassle free but it should

be able to meet new challenges posed by the technology and any other external and

internal factors. Banking in India has its origin as early as Vedic Period. It is

believed that the transition from money lending to banking must have occurred

even before Manu, the great Hindu Jurist who has devoted a section of his work to

deposits and advances and laid down the rules relating to rates of interest. During

the days of East India Company it was the turn of the agency houses to carry on the

banking .

History

The banking system of India should not only be hassle free but it should be able to

meet new challenges posed by the technology and any other external and internal

factors. For the past three decades India's banking system has several outstanding

achievements to its credit. The most striking is its extensive reach. It is no longerconfined to only metropolitans or cosmopolitans in India. In fact, Indian banking

system has reached even to the remote corners of the country. The first bank in

India, though conservative, was established in 1786. From 1786 till today, the



journey of Indian Banking System can be segregated into two distinct phases. They

are as mentioned below:

Early phase from 1786 to 1969 of Indian Banks

Nationalisation of Indian Banks and up to 1991 prior to Indian bankingsector Reforms.

Phase I

The General Bank of India was set up in the year 1786. Next came Bank of

Hindustan and Bengal Bank. The East India Company established Bank of Bengal

(1809), Bank of Bombay (1840) and Bank of Madras (1843) as independent units

and called it Presidency Banks. These three banks were amalgamated in 1920 andImperial Bank of India was established which started as private shareholders

banks, mostly Europeans shareholders. In 1865 Allahabad Bank was established

and first time exclusively by Indians, Punjab National Bank Ltd. was set up in

1894 with headquarters at Lahore. Between 1906 and 1913, Bank of India, Central

Bank of India, Bank of Baroda, Canara Bank, Indian Bank, and Bank of Mysore

were set up. Reserve Bank of India came in 1935. During the first phase the growth

was very slow and banks also experienced periodic failures between 1913 and

1948. There were approximately 1100 banks, mostly small. To streamline the

functioning and activities of commercial banks, the Government of India came up

with The Banking Companies Act, 1949 which was later changed to Banking

Regulation Act 1949 as per amending Act of 1965.

Phase II

Government took major steps in this Indian Banking Sector Reform after

independence. In 1955, it nationalised Imperial Bank of India with extensive

banking facilities on a large scale specially in rural and semi-urban areas.



It formed State Bank of india to act as the principal agent of RBI and to handle

banking transactions of the Union and State Governments all over the country. By

the 1960s, the Indian banking industry has become an important tool to facilitatethe development of the Indian economy. At the same time, it has emerged as a

large employer, and a debate has ensued about the possibility to nationalise the

banking industry. Indira Gandhi, the then Prime Minister of India expressed the

intention of the GOI in the annual conference of the All India Congress Meeting.

Seven banks forming subsidiary of State Bank of India was nationalised in 1960 on

19th July, 1969, major process of nationalisation was carried out.

A second dose of nationalization of 6 more commercial banks followed in 1980.

The stated reason for the nationalization was to give the government more control

of credit delivery. With the second dose of nationalization, the GOI controlled

around 91% of the banking business of India. Later on, in the year 1993, the

government merged New Bank of India with Punjab National Bank. It was the

only merger between nationalized banks and resulted in the reduction of the

number of nationalised banks from 20 to 19.

Phase III

This phase has introduced many more products and facilities in the banking sector

in its reforms measure. In 1991, under the chairmanship of M Narasimham, a

committee was set up by his name which worked for the liberalisation of banking

practices.

The country is flooded with foreign banks and their ATM stations. Efforts are

being put to give a satisfactory service to customers. Phone banking and net



banking is introduced. The entire system became more convenient and swift. Time

is given more importance than money. The financial system of India has shown a

great deal of resilience. It is sheltered from any crisis triggered by any external

macroeconomics shock as other East Asian Countries suffered. This is all due to aflexible exchange rate regime, the foreign reserves are high, the capital account is

not yet fully convertible, and banks and their customers have limited foreign

exchange exposure.

Liberalisation

In the early 1990s, the then Narsimha Rao government embarked on a policy ofliberalisation, licensing a small number of private banks. These came to be known

as New Generation tech-savvy banks and included Global Trust Bank. This move,

along with the rapid growth in the economy of India, revitalized the banking sector

in India, which has seen rapid growth with strong contribution from all the three

sectors of banks, namely, government banks, private banks and foreign banks.

The next stage for the Indian banking has been setup with the proposed relaxation

in the norms for Foreign Direct Investment, where all Foreign Investors in banks

may be given voting rights which could exceed the present cap of 10%,at present it

has gone up to 49% with some restrictions.

Currently, banking in India is generally fairly mature in terms of supply, product

range and reach-even though reach in rural India still remains a challenge for the

private sector and foreign banks. In terms of quality of assets and capital adequacy,

Indian banks are considered to have clean, strong and transparent balance sheets

relative to other banks in comparable economies in its region. With the growth in

the Indian economy expected to be strong for quite some time-especially in its

services sector-the demand for banking services, especially retail banking,



mortgages and investment services are expected to be strong. One may also expect

M&A, takeovers, and asset sales. In March 2006, the Reserve Bank of India

allowed Warburg Pincus to increase its stake in Kotak Mahindra Bank (a private

sector bank) to 10%. This is the first time an investor has been allowed to holdmore than 5% in a private sector bank since the RBI announced norms in 2005 that

any stake exceeding 5% in the private sector banks would need to be vetted by

them.

Indian Banking system

The Indian Banking Industry can be categorized into non-scheduled banks andscheduled banks. Scheduled banks constitute of commercial banks and co-

operative banks. There are about 67,000 branches of Scheduled banks spread

across India. As far as the present scenario is concerned the banking industry in

India is in a transition phase. The Public Sector Banks (Pubs), which are the

foundation of the Indian Banking system account for more than 78 per cent of total

banking industry assets.

Unfortunately they are burdened with excessive Non Performing assets (NPAs),

massive manpower and lack of modern technology.

On the other hand the Private Sector Banks are witnessing immense progress. They

are leaders in Internet banking, mobile banking, phone banking, ATMs. On the

other hand the Public Sector Banks are still facing the problem of unhappy

employees. There has been a decrease of 20 percent in the employee strength of the

private sector in the wake of the Voluntary Retirement Schemes (VRS).



Indusland Bank was the first private bank to be set up in India. IDBI, ING Vyasa

Bank, SBI Commercial and International Bank Ltd, Dhanalakshmi Bank Ltd,

Karur Vysya Bank Ltd, Bank of Rajasthan Ltd etc are some Private Sector Banks.

Banks from the Public Sector include Punjab National bank, Vijaya Bank, UCOBank, Oriental Bank, Allahabad Bank, Andhra Bank etc.

ANZ Grindlays Bank, ABN-AMRO Bank, American Express Bank Ltd; Citibank

etc are some foreign banks operating in India.

Commercial banks

Commercial banks have been in existence for many decades. Commercial Banksmobilize savings in urban areas and make them available to large and small

individual and trading units mainly for Working Capital requirements. After1969,

Commercial Banks are broadly classified into nationalized public sector banks and

private sector banks.

The State Bank of India and its associate Banks along with another 20 banks are

the public sector banks. The private sector banks include a small number of Indian

Scheduled banks which have not been nationalized.

Public Sector Banks

Public sector banks are those which are owned by the Central Government either

directly or through the Reserve Bank of India. They are also known as

Nationalised Banks. Eg: State Bank of India and its subsidiaries, Allahabad Bank,

Corporation Bank, Vijaya Bank, Canara Bank, Bank of Baroda, Punjab National

Bank, Syndicate Bank, the Oriental Bank of Commerce.



Private Sector Banks

Private Sector banks are those which are owned and controlled by private

entrepreneurs. Private sector banks are classified as Private sector Indian Banks

and Private Sector Foreign banks. Private Sector India Banks are those which are

owned and controlled by Indian Entrepreneurs. Indusland Bank was the first

private bank to be set up in India. IDBI, ING Vyasa Bank, HDFC Bank, ICICI

Bank, UTI Bank (Now Axis Bank), Centurion Bank. Private sector Forign Banks

are those which are owned and controlled by foreign entrepreneurs. ANZ

Grindlays Bank, ABN-AMRO Bank, American Express Bank Ltd; Citibank etc are

some foreign banks operating in India

Regional Rural Banks

The Regional Rural Banks (RRB) came into existence since the middle of 1970‟s

with the specific objective of providing credit and deposit facilities particularly to

the small and marginal farmers, agricultural laborers and artisans and small

entrepreneurs.

Co-operative banks

In India, co-operative Banks has assigned an important role in the development of

vital areas such as agriculture, rural and small-scale industry, retail distribution;

housing etc. the cooperative banking sector has been developed in the country to

replace the village moneylenders. They also promote savings of the farmers and

meet their credit needs for cultivation. The cooperative banking sectors are not

only in rural areas but now they have spread to urban areas also.



Scheduled banks and non-scheduled banks

Under the RBI Act, 1934, banks were classified as Scheduled banks and non-

scheduled banks. the scheduled banks are those which have are included in the

schedule(second)of RBI Act,1934.these banks have a paid up capital and reserves

of an aggregate value of not less than Rs.5 lakhs and which satisfy RBI that their

affairs are carried out in the interest of their depositors. Scheduled Banks comprise

commercial banks and the cooperative banks, In terms of ownership, Commercial

banks can be further grouped into nationalized banks, the State Bank of India and

its group banks, Regional Rural Banks and Private sector Banks (old, new,

domestic and foreign).These banks have over 67,000 branches spread across thecountry. Non-scheduled banks are those which have not been included in the

second schedule of RBI Act, 1934.at present, there are three non-scheduled banks

in India.



COMPANY PROFILE

BACKGROUND AND INCEPTION OF THE COMPANY

Corporation Bank is one of the oldest Banking Institutions in the DakshinaKannada district of Karnataka and one of the oldest banks in India. As the saying

goes on “A thousand mile journey starts with small step”. A step was taken by Shri

Khan Bahadur Haji Abdullha Haji Kasim Saheb Bahadur, a businessman of Udupi

way back on the 12th of March 1906 with a group of philanthropist founded the

„Canara Banking Corporation of Udupi Limited‟. A handful of people representing

the various interests decided to promote the „Canara Banking Corporation of Udupi

Limited‟. Eleven persons who included 4 pleaders, 2 educationist, 1 insurance

agent and 1 retired sub magistrate where the first signatories of the Articles of

Association and Memorandum of Association of the bank who had in all 111

shares. The need to start this bank was felt because there was no such facility at

Udupi, an important trading centre next to Manglore in Dakshin Kannada district.

The indigenous banking was largely in the hands of few rich private individuals

and some thing had to be done to provide relief to the common man from the

clutches of the money lenders who held fully swey. What inspired the founding

fathers was the fervor of swadeshism, for promoting the bank, the founder

president made an appeal saying, the primary object in forming the „Corporation

Bank‟ is not only to cultivate habit of thrifts amongst all classes of people, wi thout

distinction of the cast or creed, but also habit of co-operation amongst all classes.

This is swadeshism, pure and simple and every lover of the country is expected tocome forward and co-operate in achieving the end in view.

It was called through co- operation of all, shorn of distinction of caste and creed “

The Canara Banking Corporation Limited” as the institution was called then,

started functioning as a “Nidhi” with a humble beginning. The initial capital was



Rs 5000. Corporation Bank which was founded in 1906 and today it is a “100 year

young bank”.

The bank had its origin in the temple town, Udupi which was then a part ofDakshin Kannada district. The credit of introducing the bank goes to the Canara

Banking Corporation of Udupi Limeted. Corporation Bank is a public sector bank

which has been silently creating waves among the domestic banks in India. It is

one of the Nationalised Banks in India. The bank withstood the challenges of the

financial sector reforms and has emerged as the one of the financially and

fundamentally strong, well capitalised, technological sophisticated, efficient,

effective and one of the most profitable bank in India.

In the year 1952, Corporation Bank became the third bank in the country to receive

license from the Reserve Bank of India as „Scheduled Bank‟. In the year 1961, the

bank of citizens was merged with the Corporation Bank. It was nationalised in

April 1980, which triggered the growth of the bank in terms of geographical reach

and business volumes.

The name of the bank was changed from Canara Banking Corporation of Udupi

Limited to Corporation Bank in the year 1973 and the corporate office of the bank

was shifted to Mangalore.



Vision, mission and Quality policy

CORPORATE VISION

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

efficiency, technology, products and services.

CORPORATE MISSION

To become a provider of World - Class Financial Services

To meet Customer expectations through Innovation and Technological

Initiatives

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

values and Good Corporate Governance

To enhance Shareholder's Wealth by sustained, profitable and

financially sound growth with prudent risk management systems

To fulfill national and social obligations as a responsible Corporate

citizen

To create an environment, intellectually satisfying and professionallyrewarding to the employees

Strengths of the Bank

The Bank has well experienced and qualified staff in the Top Position as well

as functional level. It has a sound asset quality with provisional coverage of 75%

which is best amongst its peers. Its net NPA in the second quarter of 2009-10 was

only 0.29%, while restructured loans constitute 3% of the loan book as comparedto 10% plus level for a for other bank. The Bank has also lowest operational cost

among its peers. Cost to income ratio fell from 44.6% to 32.2% over a three year

period. The total vehicle loan portfolio of the bank stands for at Rs 960 crores and



home loan 4400 crores. The total retail portfolio of the bank is only 18% of the

total advances.

Corporation bank has altogether progress in its business parameters, registering29.47% growth over the previous year; profit growth registered an increase of

21.47%.Bank is having full computerized environment in all its branches with

interconnectivity through core banking.

A good number 1054 branches and 1032 ATM across the country and two

representative offices in HONG KONG and DUBAI gives a strong presence

across the globe.

ACHIEVEMENT/ AWARD

National Award for Assistance to Exporters from the President of India (1976-77).

Gem & Jewellery Export Promotion Council Award for 5 years from 1981- 85.

Shiromani Award 1992 for Banking from Union Minister for Commerce.

Best Bank Award for Excellence in Banking Technology from Institute for

Development and Research in Banking Technology (IDRBT), Hyderabad (2001) .

Best Bank Award for Innovative Usage and Application on INFINET (Indian

Financial Network) from Institute for Development and Research in Banking

Technology (IDRBT), Hyderabad (2002)

Best Bank Award for Delivery Channels from Institute for Development and

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

Runner- up Awards in the “Best Online and Multi -channel Banking Team” and“Outstanding achiever of the year -corporate” categories in recognition of

outstanding achievement in Banking Technology for 2004, instituted under the

aegis of Indian Banks Association and Trade Fairs & Conferences International .[5]

http://en.wikipedia.org/wiki/Corporation_Bank#cite_note-4






Corporation Bank is one among the few banks in the country to take up principal

membership of visa international and Master-card International .

COMMITMENT TO SOCIETY

Corporation Bank being a public sector bank also works towards the economic

development of the country. It plays an important role in the revival of weaker

sections of the society. Corporation Bank is bounded by the guidelines of the RBI

to provide credit to the priority sectors. The priority sector consists of farmers,

artisans and small-scale industries.

ORGANISATIONAL STRUCTURE OFCorporation bank



Three tier structure:

CBOO is a unitary organization with a three tier setup. At the central level there is

an Executive Committee comprising office bearers elected in the Central Board,ex-officio members representing the Zonal Units and nominated functionaries. The

Zonal committee constitutes the second tier comprising the elected regional level

functionaries. At the lowest tier are the Branch Secretaries working as the link

between the members at the grass root and the office bearers at different levels.

Composition of the EC

The Executive Committee consists of the following functionaries

01. President

02. Vice Presidents (2)

03. General Secretary

04. Joint General Secretary (4)

05. Deputy General Secretary (3)

06. Treasurer

07. Secretary Benevolent Fund

08. Secretary Women's Wing

09. Circle Secretary (6)

10. Assistant General Secretary (5)

11. Secretary, Balasubramaniam Foundation for Education & Training12. Secretary, SWASTI

13. Zonal Secretaries (32)

Out of these, the members in their triennial General Body Meeting elect 14 office



bearers from 1 to 8. The Executive Committee nominates 6 office bearers from 9 to

11.

Zonal Secretaries: The Zonal Secretaries are ex officio members. They are elected at the triennial

general body meeting of members at every Zone corresponding with the Bank's

geographical zone. For the sake of efficiency, the Bank's Head Office, Mangalore

is treated as one zone with an exclusive Zonal Committee elected in the meeting of

the members working in Head Office.

The Zonal committee comprises the following functionaries:

1. Zonal Chairman

2. Zonal Secretary

3. Deputy Zonal Secretary

4. Zonal Lady Secretary

5. Area Secretaries (minimum 5 and maximum 15, depending on the size of the

membership and spread of the Zone)

The current Zonal wise list of committees along with their contact numbers and

addresses is given in the section on the list of Zonal office bearers .

Branch Secretaries:

The branch secretaries are generally elected by the members of the branches;

where the members are very few, such secretaries are nominated by the Regional

Committee.



Meetings:

The Executive Committee generally meets not less than 3 times a calendar year.

The meetings are held in different places. The President chairs the meeting. The proceedings of the meetings are recorded and preserved. The Zonal committee also

meets not less than 3 times a year. The Zonal chairman presides over the meeting.

SWOT ANALYSIS OF CORPORATION BANK

CORPORATION BANK



Parent company Government of India

Category Bank

Sector Banking and finance

Tagline/Slogan Prosperity for all

USP Customised banking solutions

STP

Segment Rural and urban Banking

Target group Emerging markets

Positioning Complete Banking solutions

SWOT ANALYSIS

STRENGTH 1.Equal presence in rural and urban

areas

2.Strong financial performance.

3.Employee base of over 12000 people

4.Customised banking solutions.

WEAKNESS 1.Lack of Pan India presence.

2.Less publicity and branding in

comparison with leading banks.

Opportunity 1.Innovative products and services.

2.Government funding.

Threats 1.Economic crisis and volatile markets



2.Changing RBI policy

3.Presence on other banks.

COMPETITION

COMPETITORS 1. S.B.I.

2.Andhra Bank

3.Allahabad bank

4.Canara bank

corporation bank mp birla internship

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