State Bank of Mysore Project

INTRODUCTION As a cancel of the MBA programme, I rush underinterpreted fancy crop i. e. an Organizational Study of body politic wedge of Mysore, which I completed as per the requirements of the organization as hearty as project rules. This internship did enable me to understand the nuances of the service field and procure an on-hand experience of application of supposititious knowlight-emitting diodege. In fact it gave me a look-through to gimmicks of the game and apprised me of the fact that Business is a combo of Art, erudition and Profession. I did gain good amount of know takege since I had an encounter with the as delimitates of the organization or quite Employees of the firm, its? ulture, practices, departments, so On and so forth. Walter Lipmann says The ultimate test of a leader is found by the give chase he leaves behind and not by what he has achieved. And thitherfore let me take you through progress in this report to show you what trail res publica marge of Mysore has left by being a Leader in letter and spirit. The study is desexualizeed to the information drawn from the authorities of the organization and its? unlike(prenominal) website. The study is not proposed to be an expert study since the eon ashes offered for the study was very short.However the screen background of the study, by and large is all inclusive though there could be areas which are not address to repayable to the causal agent tell above already. All in all it was an experiential learning that an MBA scene is pass judgment to possess which was possible because of curriculum de coiffureate by the Bangalore University and distinguish aver of Mysore. Rest assured I am now for this internship has cleared the veil in front of us to let us know how actually does a firm look like and breaks, unlike what we had read in the books. Chapter 1MEANING OF composition physical composition is the foundation upon which the whole structure of management is built . Organisation is related with developing a frame work where the total work is divided into manageable components in order to facilitate the achievement of objectives or goals. Thus, arranging is the structure or mechanism (machinery) that enables living things to work in concert. In a static sense, an g everyplacenment is a structure or machinery manned by group of individuals who are working together towards a harsh goal. Organisation is the process of identifying and grouping work to be per create, be and delegating responsibility and berth and establishing relationship for the purpose of alter people to wore most effectively together in accomplishing objectives. Definition contrastive authors have defined organisation in dissimilar ways. The main definitions of organisation are as follows harmonize to Keith Davis, Organisation may be defined as a group of individuals, large of small, that is cooperating under the mode of executive leadership in accomplishment of acce pted common object. According to Chester I. Barnard, Organisation is a governing body of co-operative activities of devil or more persons. According to Louis A. Allen, Organisation is the process of identifying and grouping the work to be performed, defining and delegating responsibility and billet, and establishing relationship for the purpose of enabling people to work most effectively together in accomplishing objectives. According to Mooney and Railey, Organisation is the form of every military man association for the attainment of a common purpose. IMPORTANCE OF ORGNISATIONAL STUDYThe effectiveness and efficiency of organization helps in providing the continuity and success to the enterprise. at that place are umteen a(prenominal) factors that explain the importance and objectives of organisation and they are- 1. Facilitates Administration An efficient and sound organisation make user-friendly for the management to relate the flow of resource continually to the ov erall objectives. A sound organisation helps in providing appropriate platform where management pile performs the functions of planning, direction, coordination, motivation and take in. 2.Facilitates Growth and Diversification A sound organisation helps in the egression and diversification of activities. The growth is facilitated by clear division of work, proper delegation of authority etc. In short, it helps in the organisational elaboration. In case of reasonable expansion of organisation, the functional types get replaced by a more flexible decentralized organisation. 3. Permits optimum use of Resources The optimum use of technical and human resources gets facilitated in sound and efficient organisation. The organisation apprise have the facilities of latest scientific developments and improvements.It alike facilitates optimum use of human resources through specialization. The people in the organisation get appropriately trained and get promotion opportunities. A sound org anisation provides all the desired potential and strength to the company to picture the future challenges. 4. Stimulate Creativity The specialization in the organisation helps individuals in getting well defined duties, clear lines of authority and responsibility. It encourages the creativity of the people. The sound organisational structure enables mangers to concentrate on cardinal issues where their talent chiffonier be exploited to the maximum. . Encourages Humanistic Approach A sound organisation helps in adopting efficient methods of selection, training, earnings and promotion for employees. It makes people work in a team and not like machines or robots. Organisation helps in providing factors like strain rotation, job enlargement and enrichment to its employees. A sound organisation provides higher job satisfaction to its employees through proper delegation and decentralization, favourable working environment and democratic and participative leadership.It enhances the mo de of communion and interaction among different levels of the management. PRINCIPLES OF ORGANIZATION ? The dogma of Objective ? Principle of Specialization ? The Scalar Principle ? The Principle of Authority ? The Principle of unity of Command OBJECTIVES OF THE STUDY 1. To study the organization 2. To study heterogeneous departments much(prenominal) as a). Operations Management Department b. Planning and Development Department c). commercial-gradeised and Institutions Department d). exchequer Department e). Technology Department f). forethought and Inspection Department 3.To study the twenty-four hours to day activities of the brim DATA COLLECTION The methodology used in this study involves the collection of information through various ways such(prenominal) as primary selective information and secondary data. Primary data Primary data is collected from primary sources the data collected through interview with various department heads and officers of the firm. With the hel p of managers and employees in various department helps to get a clear idea about the organization and its day to day activities. Secondary data humansations of a wide variety provide a good deal of foreign secondary data.News paper, magazines, technical journals, mete out overtations, directories, government publications, committee reports, these are sources of external secondary data. Secondary data can to a fault be purchased in some cases from commercial tradeing research services. Various types of pen documents within the organization, magazines and internet. a) Price lists b) Catalogues etc c) Internet and websites 1. 6 LIMITATION OF STUDY 1. Very little time cover is available for study. 2. Sales data is taken 18th July to 18th exalted 3. Lack of prior experience. 4. There is a possibility 0f an exaggerated claim. INDUSTRY PROFILE pic Chapter 2 Overview of Industry Profile A money box is a pecuniary institution and a financial intermediary that accepts deposits an d channels those deposits into lending activities, either instantaneously or through capital markets. A posit connects customers that have capital deficits to customers with capital surpluses. Due to their particular status within the financial strategy and the economy generally, banks are highly regulated in most countries. about banks operate under a system known as fractional reserve banking where they keep back tho a small reserve of the funds deposited and lend out the rest for profit.They are generally stem to minimum capital requirements which are based on an worldwide set of capital standards, known as the Basel Accords. The oldest bank s public treasury in existence is Monte dei Paschi di Siena, headquartered in Siena, Italy, which has been operating continuously since 1472 curseing Sector in India money boxing in India originated in the last decades of the 18th century. The introductory depones were The command deposit of India, which started in 1786, and swear of Hindustan, which started in 1790 both are now defunct.The oldest deposit in existence in India is the State aver of India, which originated in the buzzword of Calcutta in June 1806, which some immediately became the vernacular of Bengal. This was one of the tercet presidency shores, the opposite twain being the marge of Bombay and the camber of Madras, all three of which were realized under charters from the British East India Company. For many divisions the Presidency slangs acted as quasi-central borders, as did their successors. The three commits merged in 1921 to form the Imperial depose of India, which, upon Indias freedom, became the State situate of India. HistoryIndian merchants in Calcutta formal the Union till in 1839, but it fai lead in 1848 as a consequence of the economic crisis of 1848-49. The Allahabad rim, established in 1865 and still functioning today, is the oldest Joint Stock border in India. (Joint Stock patois A company that iss ues stock and requires shareholders to be held liable for the companys debt) It was not the get-go though. That honour belongs to the banking concern of Upper India, which was established in 1863, and which survived until 1913, when it failed, with some of its assets and liabilities being transferred to the Alliance Bank of Shimla.When the American Civil War stopped the supply of cotton to Lancashire from the Confederate States, promoters exposed Banks to finance trading in Indian cotton. With large exposure to speculative ventures, most of the Banks opened in India during that period failed. The depositors lost capital and lost interest in keeping deposits with Banks. Subsequently, Banking in India remained the goop domain of Europeans for next several decades until the ancestry of the 20th century. hostile Banks too started to arrive, particularly in Calcutta, in the 1860s.The Comptoire dEscompte de Paris opened a commencement in Calcutta in 1860, and an in the raw(prenom inal) in Bombay in 1862 branches in Madras and Pondicherry, then a French colony, followed. HSBC established itself in Bengal in 1869. Calcutta was the most active trading port in India, mainly due to the trade of the British Empire, and so became a Banking centre. The first entirely Indian formulate stock Bank was the Oudh Commercial Bank, established in 1881 in Faizabad. It failed in 1958. The next was the Punjab National Bank, established in Lahore in 1895, which has survived to the benefaction and is now one of the largest Banks in India.Around the turn of the 20th Century, the Indian economy was passing through a sexual relation period of stability. Around five decades had elapsed since the Indian Mutiny, and the social, industrial and other infrastructure had improved. Indians had established small Banks, most of which served particular ethnic and religious communities. The presidency Banks dominated Banking in India but there were also some exchange Banks and a number of In dian joint stock Banks. All these Banks operated in different segments of the economy. The exchange Banks, mostly owned by Europeans, concentrated on financing foreign trade.Indian joint stock Banks were generally undercapitalized and lacked the experience and maturity to compete with the presidency and exchange Banks. This segmentation let master key Curzon to observe The period amid 1906 and 1911, saw the establishment of Banks inspired by the Swadeshi movement. The Swadeshi movement inspired local anesthetic businessmen and political figures to found Banks of and for the Indian community. A number of Banks established then have survived to the stand for such as Bank of India, Corporation Bank, Indian Bank, Bank of Baroda, Canara Bank and substitution Bank of India. no of Banks Failed & their Capitals old age Number of Banks Authorised capital(Rs. Paid-up Capital that failed Lakhs) (Rs. Lakhs) 1913 12 274 35 1914 42 710 109 1915 11 56 5 916 13 231 4 1917 9 76 25 1918 7 209 1 Table 2. 1 no(prenominal) of Banks Failed and its capital The fervour of Swadeshi movement lead to establishing of many undercover Banks in Dakshina Kannada and Udupi district which were unified primitively and known by the forebode South Canara ( South Kanara ) district.Four nationalised Banks started in this district and also a star(p) private sector Bank. Hence undivided Dakshina Kannada district is known as Cradle of Indian Banking. During the graduation exercise World War (1914-1918) through the end of the Second World War (1939-1945), and two years thenceforth until the independence of India were challenging for Indian Banking. The years of the First World War were turbulent, and it took its toll with Banks simply collapsing in spite of the Indian economy gaining indirect boost due to war-related economic activities.At to the lowest degree 94 Banks in India failed between 1913 and 1918 as indicated in the following table Post-Independence T he partition of India in 1947 adversely impacted the economies of Punjab and West Bengal, paralyzing Banking activities for months. Indias independence marked the end of a regime of the Laissez-faire for the Indian Banking. The political science of India initiated measures to play an active fictional character in the economic life of the nation, and the Industrial Policy Resolution adopted by the government in 1948 envisaged a mixed economy.This resulted into greater involvement of the posit in different segments of the economy including Banking and finance. The major stairs to regulate Banking included ? The hold Bank of India, Indias central Banking authority, was nationalized on January 1, 1949 under the terms of the Reserve Bank of India ( manoeuver to cosmos Ownership) Act, 1948 (RBI, 2005b). ? In 1949, the Banking ordinance Act was enacted which empowered the Reserve Bank of India (RBI) to regulate, control, and inspect the Banks in India. The Banking Regulation Act also provided that no new Bank or branch of an xisting Bank could be opened without a license from the RBI, and no two Banks could have common directors. Nationalisation pic Banks Nationalisation in India newspaper publisher Clipping, Times of India, July, 20, 1969 Despite the provisions, control and regulations of Reserve Bank of India, Banks in India except the State Bank of India or SBI, continued to be owned and operated by private persons. By the 1960s, the Indian Banking industry had become an important tool to facilitate the development of the Indian economy.At the same time, it had emerged as a large employer, and a vie had ensued about the nationalization of the Banking industry. Indira Gandhi, then Prime Minister of India, expressed the intention of the administration of India in the annual conference of the All India Congress Meeting in a paper authorize Stray thoughts on Bank Nationalisation. The meeting received the paper with enthusiasm. There by and by, her move was swift and sudden. The Government of India issued an ordinance and nationalised the 14 largest commercial Banks with effect from the midnight of July 19, 1969.Jayaprakash Narayan, a national leader of India, described the step as a masterstroke of political sagacity. indoors two weeks of the issue of the ordinance, the Parliament passed the Banking Companies (Acquisition and Transfer of Undertaking) Bill, and it received the presidential approval on 9 August 1969. A second dose of nationalization of 6 more commercial Banks followed in 1980. The verbalize reason for the nationalization was to give the government more control of credit delivery. With the second dose of nationalization, the Government of India controlled round 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 when merger between nationalized Banks and resulted in the reduction of the number of nationalised Banks from 20 to 19. After this, until the 1990s, the nationalised Banks grew at a tempo of around 4%, closer to the average growth rate of the Indian economy. Liberalisation In the advance(prenominal) 1990s, the then Narasimha Rao government embarked on a policy of liberalization, licensing a small number of private Banks.These came to be known as New Generation tech-savvy Banks, and included Global Trust Bank (the first of such new generation Banks to be set up), which later amalgamated with Oriental Bank of job, Axis Bank(earlier as UTI Bank), ICICI Bank and HDFC Bank. This move, along with the steadfast 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 set up 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 range cap of 10%, at present it has gone up to 74% with some restrictions. The new policy shook the Banking sector in India completely. Bankers, till this time, were used to the 4-6-4 method (Borrow at 4% Lend at 6% Go home at 4) of functioning. The new wave ushered in a modern outlook and tech-savvy methods of working for traditional Banks. All this led to the retail boom in India.People not just demanded more from their Banks but also received more. presently (2007), Banking in India is generally fairly mature in terms of supply, product range and action-even though r for each one 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. The Reserve Bank of India is an autonomous body, with minimal pressure from th e government.The stated policy of the Bank on the Indian Rupee is to manage volatility but without any flash-frozen exchange rate-and this has mostly been true. 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 Ms, takeovers, and asset sales. In meet 2006, the Reserve Bank of India allowed Warburg Pincus to increase its stake in Kotak Mahindra Bank (a private sector Bank) to 10%.This is the first time an investor has been allowed to hold more than 5% in a private sector Bank since the RBI announced norms in 2005 that any stake exceeding 5% in the private sector Banks would need to be vetted by them. In recent years critics have charged that the non-government owned Banks are too aggressive in their contribute recovery efforts in connection with housing, vehicle and personal con tributes. There are press reports that the Banks loan recovery efforts have driven defaulting borrowers to suicide. Phase 1 ( manglech 2005 to March 2009) . Foreign banks were allowed to establish presence in India and were given an option to operate through branch presence or set up a 100% Wholly Owned Subsidiary (WOS). 2. Foreign banks were allowed to open 12 branches a year (the limit was in line with World Trade Organisation (WTO) commitment). Branch licensing procedure was kept same as applicable for private banks. More liberal branch opening policy was adopted in under-banked areas. 3. The limit of 12 branches a year was raised to 20 branches for foreign banks in March2006. 4.Acquisition of shares in Indian banks by foreign banks was permitted for banks whichare identified by RBI for restructuring. Phase 2 (April 2009 onwards) 1. Branch expansion -After reviewing the experience of the first phase, RBI has proposed to remove the restriction on branch expansion and limited exces s to Indian market and treating them on par with domestic help banks to the cessation appropriate. 2. Listing of foreign banks -After completion of the proposed year of operation in India, WOS of foreign banks will be allowed to list and dilute the stake in the manner that at leastof 26% of the paid-up capital remains with the resident Indian. . Mergers and acquisitions -After a review is made with regard to the extent ofpenetration of foreign investment in Indian banks and functioning of foreign banks, foreign banks may be permitted, subject to regulatory approvals and such conditions as may be prescribed, to enter into merger and acquisition legal proceeding with any private sector bankin India, subject to the overall investment limit of 74 per cent. Adoption of Banking Technology The IT revolution had a great impact in the Indian banking system.The use of computers had led to introduction of online banking in India. The use of the modern innovation and computerisation of the b anking sector of India has increased many fold after the economic liberalisation of 1991 as the countrys banking sector has been exposed to the worlds market. The Indian banks were finding it difficult to compete with the international banks in terms of the customer service without the use of the information technology and computers.The RBI in 1984 formed perpetration on Mechanisation in the Banking Industry (1984) whose chairman was Dr C Rangarajan, Deputy Governor, Reserve Bank of India. The major recommendations of this committee were introducing MICR Technology in all the banks in the metropolis in India . This provided use of regularise cheque forms and encoders. In 1988, the RBI set up perpetration on Computerisation in Banks (1988) headed by Dr. C. R.Rangarajan which accent that settlement operation must be computerized in the clearing houses of RBI in Bhubaneshwar, Guwahati, Jaipur, Patna and Thiruvananthapuram. It further stated that there should be National Clearing of inter-city cheques at Kolkata, Mumbai, Delhi, subgenus Chennai and MICR should be made Operational. It also focused on computerisation of branches and increasing connectivity among branches through computers. It also suggested modalities for implementing on-line banking.The committee submitted its reports in 1989 and computerisation began form 1993 with the settlement between IBA and bank employees association. In 1994, Committee on Technology Issues relating to Payments System, Cheque Clearing and Securities Settlement in the Banking Industry (1994) was set up with chairman Shri WS Saraf, Executive director, Reserve Bank of India. It emphasized on electronic broths Transfer (EFT) system, with the BANKNET communications communicate as its carrier. It also said that MICR clearing should be set up in all branches of all banks with more than 100 branches.Committee for proposing Legislation On Electronic Funds Transfer and other Electronic Payments (1995) emphasized on EFT system. E lectronic banking refers to DOING BANKING by using technologies like computers, internet and networking, MICR, EFT so as to increase efficiency, quick service, productivity and transparency in the transaction. Apart from the above mentioned innovations the banks have been selling the terzetto party products like Mutual Funds, insurances to its clients. Total numbers of standard atmospheres installed in India by various banks as on end March 2005 is 17,642).The New Private Sector Banks in India is having the largest numbers of ATMs which is fol off site ATM is highest for the SBI and its subsidiaries and then it is followed by New Private Banks, Nationalised banks and Foreign banks. While on site is highest for the Nationalised banks of India. The below in writing(p) representation shows Number of branches in India pic Figure 21 No. Branches in India . History of other banks in India (includes Nationalised Banks, Private Banks and Foreign Banks) No. Year Period Characterized by 1 1840 to 1947 Pre Independence nice size, less regulated and bankfailures 2 1947 to 1969 Post Independence to Slower growth, private sector office and start of Nationalisation regulation 3 1969 to1991 Nationalisation to LiberalisationNationalised of banks by government, high regulation, secular growth in business and expansion & rising inefficiencies 4 1991 to 2010 Liberalisation to currentdate De-regulation, entry of private and foreign banks and technological advancement Table 22 History of Banks in IndiaArguments of government for communization were as follows Before the nationalisation, the privately-owned banks were operating on the criteria of profit maximisation and lesser emphasis was placed on the development of rural areas. Credit and deposits base was confined to large somatic and wealthy depositors. The nationalised banking set-up would vigorously pursue expansion programmes to cover rural areas, smaller towns and lower income groups. To pay spec ial attention to inter-sectoral balances and balanced regional development. To take away the stranglehold of the few industrial houses on credit and reduce their control over the communitys resources. Ensure stability in the functioning of the credit institutions and inspire more confidence among the depositors.Encourage healthy aspiration between large and small industrial houses. Insummary, the following are the steps taken by the Government of India to regulate thebanking institutions in the country 1949 Enactment of Banking Regulation Act. 1955 nationalization of SBI. 1959 Nationalization of SBI subsidiaries. 1961 Insurance cover wide to deposits. 1969 Nationalization of 14 major banks. 1971 Creation of credit guarantee corporation. 1975 Creation of regional rural banks. 1980 Nationalization of seven banks with deposits over Rs. 200 crores. These are the list of banking currently operating in India State Bank of Mysore State Bank of Bikaner and Jaipur State Bank of HyderabadS tate Bank of Patiala State Bank of Travancore State Bank of Indore Nationalised Banks Allahabad Bank Indian Bank Andhra Bank Indian Overseas Bank Bank of Baroda Oriental Bank of Commerce Bank of India Punjab National Bank Bank of Maharashtra Punjab & Sind Bank Canara Bank Syndicate Bank Central Bank of India Union Bank of India Corporation Bank United Bank of India Dena Bank 19. UCO Bank IDBI Bank Ltd. Vijaya Bank Private Sector Banks Axis Bank Jammu & Kashmir Ban Bank Of Rajasthan Karnataka Bank Catholic Syrian Bank Karur Vysya Bank City Union Bank Kotak Mahindra Bank Development Credit Bank Lakshmi Vilas Bank Dhanalakshmi Bank Nainital Bank Federal BankRatnakar Bank HDFC Bank SBI Commercial & International ICICI Bank South Indian Bank South Indian Bank IndusInd Bank Tamilnad MercantileBank Tamilnad Mercantile Bank ING Vysya Bank Yes Bank Yes Bank Foreign Banks ABN AMRO Bank DBS Bank 2. Abu Dhabi Commercial Bank Deutsche Bank Antwerp Diamond Bank HSBC Arab Bangladesh Bank JP Morgan Chase Bank Bank Of America Krung Thai Bank Bank Of Bahrain & Kuwait Mashreq Bank Bank Of Ceylon Mizuho Corporate Bank Bank Of Nova Scotia Oman International Bank Bank Of Tokyo-Mitsubishi- UFI Shinhan Bank Barclays Bank Societe Generale BNP Paribas Sonali Bank Calyon Bank Standard hire Bank Chinatrust Commercial BankState Bank of Mauri Objectives of the Study 1) To know the organisational structure of the SBM 2) To have the practical exposure to Organisational function as compared to theoretical concepts 3) To know the product and service offered by SBM at Kaval Byrasandra branch, Bangalore 4) To know its growth dodge and potential 5) To study the strength, weakness, opportunities and threats of the organisation to carry out swot analysis. Profile of State Bank of Mysore pic Chapter -3 pic State Bank of Mysore State Bank of Mysore was established on 2nd October 1913 as Bank of Mysore Ltd. under the over-embellished patronage of the maharaja of Mysore, one-time(prenominal) Govt. f Mysore, on the recommendations of the Banking Committee headed by the great Engineer-Statesman,Bhara Late Dr. Sir M. Vishweswaraiah . Subsequently, in March 1960, the Bank became an Associate of State Bank of India. State Bank of India holds 92. 33% of shares. The Banks shares are listed in Bangalore, Chennai, and Mumbai stock exchanges. As an associate Bank, State Bank of Mysore has a team of employees with a management. This Bank has 737 branches (as on 31. 03. 2012) and 10249 employees. The Bank has regional officesin, Bengaluru, Mysore, Mangalore, Mandya, Hassan, Shimoga, Devanagari, Bellary, Tumkur, Kolar, Chennai, Coimbatore, Hyderabad, Mumbai and New Delhi. About State Bank of Myore Date of Establishment 1913 Revenue ( USD in Millions ) Market Cap 21775. 942287 ( Rs. in Millions ) Corporate Address KG Road,PBNo 9727,Bengaluru-560009, Karnataka (www. statebankofmysore. co. n) Business Operation Bank Public Background State Bank of Mysore was e stablished in 1913 as Bank of Mysore under the patronage of the erstwhilegovernment of Mysore, at the instance of the banking committee headed by the great Engineer-Statesman, Late Dr Sir M Visvesvaraya. Subsequently, in March 1960, the bank became an Associate of State Bank of India. State Bank of India holds 92. 33% of shares. The banks shares are listed in Bangalore, Chen Financials Total Income Rs. 55948. 247 Million ( year ending Mar2012) Net Profit Rs.Million ( year ending Mar2012) Company Secretary G Soundarajan Bankers Auditors HS Ahuja & Co, Dhawan & Co, LK Kejrswal & Co, SK Basu & Co, PKKG Balasubramaniam & Associates, Bhasin Raghavan & Co, BL Ajmera & Co, MKPS & Associates, SK Basu & Co, Maharaj N R Suresh & Co Management Committee of the Bank Managing Director +91 80 22251855 Mr.Sharad Sharma +91 80 22353480 telecommunicate 080 22254753 primary(prenominal) General Manager +91 80 22251570 Ms. Hamsini Menon Fax 080 223 50563 Chief General Manager Mr.KalyanMukherjee General Manager(Operations) & Corporate Development Officer MrBibhupada Nanda +91 80 22353487 Fax 080 22353478 General Manager Executive(Agriculture & MSME) Mr K Lakshmisha +91 80 22257149 Fax 080 22353494 General Manager & grouping Executive(Corporate Banking) Mr.SaswataChaudhuri +91 80 22353471 Fax 080 22355978 General Manager (Treasury and Finance & Accounts) & Group Sri Viswanathan V +91 80 22257149 Executive(Government Business) Fax 080 22353494 General Manager (Technology Management) & Group Executive MrV Pattabhiraman +91 80 22352591 (Personal Banking) Fax 080 22356472 General Manager Risk Management and Credit Policy and Procedures MrParthasarathyN General Manager & Chief Vigilance Officer Mr Vijay Dube +91 80 22255617 Fax 080 22350562 State Bank of Mysore Organizational Structure Figure 31 Sbm Organization Structure VISION Working for better tomorrow MISSIONA premier commercial Bank in Karnataka, with all India presence, committed to provide consistently superior and personalised customer service plunk for by employee pride and will to excel, earn progressively high returns for its shareholders and be a responsible corporate citizen contributing to the well being of the confederacy. POLICIES & PROCEDURES State Bank of Mysore FUNCTIONS AND DUTIES Power and duties of its officers and employees- All the officers have certain financial powers and administrative powers depending upon their positions. The delegation of financial powers of various grades of officials is decided by the Central Board which is revised from time to time, depending upon the organizations requirement and also Government / RBI guidelines. The concerned supporting authority takes a decision to sanction a loan or otherwise on merits of each proposal.The procedure followed in the decision making process, including channels of supervision and accountability-There is a well defined system in the Bank regarding the decision making process. Financial decisions are taken at various levels by different officials depending upon their positions and also through committee approach. Centralized credit touch on cells are being formed at certain centres for sanction of personal segment loans and other loans. Branches will source the applications and forward them to the respective credit processing cells, for their consideration. Further, there is a well defined organisational structure and a clear system of accountability and control system, which also take into account the RBI / CVC guidelines. The norms set for discharge of its functionThe Bank functions with the following core set / norms ? Excellence in customer service ? Profit orientation ? Fairness in all relations and relations ? Risk taking and innovation ? Integrity ? Transparency and discipline in policies and systems Regarding the core functions of the Bank i. e. accepting deposits and sanction of loans, the intere st rates for deposits / advances and different deposit as well as loan products, are displayed in the Banks website and also made available at all the Branches. Regarding sanction of loans, each officer of the Bank will consider loan proposals and take a decision in terms of the scheme of delegation of powers, on the merits of the proposals.All the officers of the Bank are expected to discharge their duties and responsibilities with integrity and due diligence. Public can also refer to the captions concern rates, code of ethics & citizens charter of the Banks website for any further information. The rules and regulations, instructions, manuals and records held by the Bank/ used by its employees for discharging its functions. There are quite a number of documents like manuals, book of instructions, systematise circulars, scheme of delegation of powers, proceedings of the board etc and also the periodical circulars used by the employees for discharging various functions. A statement of the categories of documents that are held by the Bank or under its control.These are mainly register of Shareholders/ get in of the proceedings of the AGMs, Board Meetings and various Committee meetings, documents executed by customers/borrowers/guarantors, contracts with third parties etc. The particulars of any battle array that exists for consultation with, or representation by, the members of the public in relation to the formulation of its policy or instruction execution thereof in SBM. As per the present arrangement, the Shareholders can raise issues concerning policies and in the Annual General Meetings which can relate to the policy of the Bank. Further, the Banks quarterly results and annual results / reports are published in the Banks website periodically for information of public as well as shareholders which would give an idea about the policies of the Bank and writ of execution thereof.Further, the Central Board the apex management body of the Bank is constituted with members who are leaders from different interest groups and professions such as Industrialists, Bankers from Apex Institutions, Chartered Accountants, Economists and Workmen representatives. Public can also refer to the captions financial results / consolidated financial statement / annual report / shareholders information of the Banks website, for further information. Bank has appointed various committees for different purposes. Following are some of the important Committees managing the key affairs of the Bank a)Risk Management Committee b)Credit Risk Management committee c)Asset Liability Management committee d)Operational Risk Management committee e)Audit Committee f)Central Management Committee g) Central as well as Local BoardsPublic are not entitled to participate on the above committee meetings and minutes are not accessible to public. Public can also refer to the caption Annual report for various committees more particularly the corporate nerve link under the Annual r eport for more information about the committees. Achievements 1913 The Bank was established as Bank of Mysore Ltd. , on the 19th may, & commenced its business on the 2nd October 1913, under the patronage of His Highness the Maharaja of Mysore, with an authorised capital of Rs. 20. 00 Lakhs. 1953 During the year, the Bank was appointed as an Agent of Reserve Bank of India to shoot Government business & treasury operations. 959 With effect from the 10th September, the Bank was constituted as State Bank of Mysore as a Subsidiary of State Bank of India, under State Bank of India Subsidiary Banks Act, 1959 enacted through an Act of Parliament, Act No. 38 of 1959s. The Bank has formulated schemes for 1 financing drinking chocolate planters/coffee traders against coffee curers certificate, 2 financing coffee traders, 3 coffee exporters & 4 coffee curers who also engage in trading. State Bank of Mysore has various deposit schemes to bring home the bacon to the requirements of its cu stomers. The Bank has also actively participated in all Government sponsored schemes and contributed its share of financial assistance or the economically weaker sections through DIR, IRDP, Prime Minister Rojgar Yojna & SUME schemes. The Bank has sponsored two Regional Rural Banks, Cauvery Grameena Bank & Kalpatharu Grameena Bank which have between them 202 branches for growth of agriculture & rural industries. The Bank, as part of State Bank Group has been engaged in financing 551 since 1960 & introduced the concept of need based rather than security oriented finance & the Entrepreneur scheme under which technically qualified persons were financed the entire requirement up to Rs. 2 Lakhs. The Bank has 3 specialised SSI branches to assist the SSI units & proposes to establish 3 more such 551 branches shortly. The Bank has correspondent & agency arrangements all over the world & offers spot services in 18 major approved currencies. The Bank computerised dealing room is equipped w ith state-of-the-art information net-work for excellent services to the Bank customers. The Bank also proposed to open 21 NRI service centres to specially cater to the requirements of NRI customers. State Bank of Mysore handles a significant part of day-to-day Banking business of both the Central & State Governments in the State of Karnataka & is a Banker to various Public Sector Undertakings in various sectors of Economy. The Bank has been actively participating in welfare Banking needs of public through its community services. The Bank has set up social circles, a voluntary group of employees to conduct the community service activities, at various centres. The Bank is the proud recipient of Rolling Trophy from the bolshy Cross Society of Karnataka for 17 years in succession, till date, for having mobilised the maximum number of split donors each year, among Banking Institutions. The Bank has installed a Main Frame Computer in its Head Office which provides a reusable infor mation system to the Management & mini computers at the Zonal Offices. The Bank is a member of society for worldwide Inter Bank Financial Telecommunication SWIFTs which was established to offer cost effective & fast transmission of financial messages globally, 2 branches of Bank are presently covered under the scheme and an supernumerary 15 branches are proposed to be covered under SWIFT shortly. 992 The State Government has also taken up vigorously ASHRAYA, a new housing scheme for weaker sections & VISHWA, a new rural & bungalow industry scheme. A new programme called AKSHAYA has also been launched to help the children in primary education. The Konkan Railway Project & the New Mangalore Port Project are also progressing satisfactorily. The Bank has also been assisting Small Scale industries by offering technology & financial consultancy services to the units in its books, so as to enable them to overcome the problems of technological obsolescence, marketing, management etc. The Bank has been given a special annual award by Karnataka Unit of Indian Red Cross Society for fourteenth time for having held the most number of voluntary blood donation camps. 994 Several important measures have been introduced in the busy season credit policy of November 1993 & slow up season credit policy of May 1994, announced by Reserve Bank of India. The Bank increase rehabilitation finance to 54 such units during the year under review. The Bank STREE SAKTHI PACKAGE designed wholly for women continued to be implemented with full vigour. The Bank also proposes to introduce Automated Teller Machines ATMs and Electronic Funds Transfer facility during the next year as a measure of offering state of art Banking services to its customers. 2000 Mr. M. Sitarama Murty has been appoi nted as Managing Director, of Bank. Crisil has reaffirmed the A+ & P1+ ratings assigned to the bond issue & the CD programme of Bank. 001 State Bank of Mysore has opened a foreign exchange cell at its hierarchically Industrial commonwealth branch in Tumkur district to enable small-scale industrialists to manage their foreign exchange transactions. The Bank has unkindly its issue of unsecured non-convertible debentures after raising the target of Rs 60 crore. 2002 Enters the market with a coupon of 6. 4% per annum for its Tier-II capital bonds issue of Rs. 60cr on a private placement basis. Slashes interest rate on domestic term deposits & on NRE deposits by 25-50 basis points. 2003 Considers new method of appraisal for lending to the agricultural sector more on the lines of industrial credit given to trade & commerce. Declared a dividend of 40% on equity capital for year ended. Ties up with HMT Ltd & launches SBM-HMT Agri Farm Scheme, to promote agricultural mechanisation in southward India. Maruti Udyog forges alliances with SBM to offer car finance. Slashes floating home loan rates & the new loan is as follows maturities up to 5 five years, the rates would be 8 per cent, for maturities up to 10 years, the rates would be 8. 75 per cent on a floating rate basis & for above 10 years, 9. 25 per cent. The hardened rate housing loans remained unchanged. Farm lending rate up to Rs 50,000 was lowered to 9 per cent Inaugurated two branches in Hyderabad. 004 SBM joins hands with LTJD for tractor financing State Bank of Mysore has informed that Shri M. Sitarama Murty, Managing Director of Bank retired from the services on December 31, 2003 on attaining super-annuation Mr. Vijayanand assumes charges as Managing Director of Bank from 01/03/2004 -State Bank of Mysore has joined the Real Time crude(a) Settlement Systems RTGSs network that facilitates inter-Bank funds settlement on 22 July 2005 SBM unveils new single window system 2006 Mr P. P. Pattanayak has assumed charge as Managing Director of State Bank of Mysore. Mr Pattanayak was earlier Deputy Managing Director DMDs & Chief Credit Officer of State Bank of India, Mumbai. 2009 The Comp. as splits its face value from Rs100/- to Rs10/-. The State Bank of Mysore has a dedicated workforce of 9926 employees consisting of 3179 supervisory staff, 6747 non-supervisory staff (as on 31 March 2011). The skill and competence of the employees have been kept updated to meet the requirements of customers keeping in view the changes in the Banking environment. State Bank of India is the nations largest and oldest Bank. Tracing its root back some 200 years to the British East India Company (and initially established as the Bank of Calcutta in 1806), the Bank operates more than 15,000 branches within India, where it also owns majority stakes in sextuplet associate Banks.State Bank of India (SBI) has more than 80 offices in nearly 35 other countries, including multiple locations in the US, Canada, and Nigeria. The Bank has other units devoted to capital markets, fund management, factoring and commercial services, credit cards, and brokerage services. The Reserve Bank of India owns abo ut 60% of State Bank of India. The roots of the State Bank of India rest in the first decade of 19th century, when the Bank of Calcutta, later renamed the Bank of Bengal, was established on 2 June 1806. The Bank of Bengal and two other Presidency Banks, namely, the Bank of Bombay (incorporated on 15 April 1840) and the Bank of Madras (incorporated on 1 July 1843).All three Presidency Banks were incorporated as joint stock companies, and were the result of the royal charters. These three Banks received the exclusive right to issue paper currency in 1861 with the Paper Currency Act, a right they carry until the formation of the reserve Bank of India. The Presidency Banks amalgamated on 27 January 1921, and the reorganized Banking entity took as its name Imperial Bank of India. The Imperial Bank of India continued to remain a joint stock company. pursuant(predicate) to the provisions of the State Bank of India Act (1955), the Reserve Bank of India, which is Indias central Bank, acquir ed a arbitrary interest in the Imperial Bank of India.On 30 April 1955 the Imperial Bank of India became the State Bank of India. The Govt. of India deep acquired the Reserve Bank of Indias stake in SBI so as to remove any struggle of interest because the RBI is the countrys Banking regulatory authority. In 1959 the Government passed the State Bank of India (Subsidiary Banks) Act, enabling the State Bank of India to take over eight former State-associated Banks as its subsidiaries. On Sept 13, 2008, State Bank of Saurashtra, one of its Associate Banks, merged with State Bank of India. SBI has acquired local Banks in rescues. For instance, in 1985, it acquired Bank of Cochin in Kerala, which had 120 branches.SBI was the acquirer as its affiliate, State Bank of Travancore, already had an extensive network in Kerala. SBI provides a range of Banking products through its vast network in India and overseas, including products aimed at NRIs. The State Bank Group, with over 16000 branches , has the largest branch network in India. With an asset base of $250 billion and $195 billion in deposits, it is a regional Banking behemoth. It has a market share among Indian commercial Banks of about 20% in deposits and advances, and SBI accounts for almost one-fifth of the nations loans. SBI has tried to reduce its over-staffing through computerizing operations and Golden handshake schemes that led to a flight of its best and brightest managers.These managers took the retirement allowances and then went on the becoming senior managers at new private sector Banks. The State Bank of India is 29th most reputable company in the world according to Forbes. Associate Banks-The Subsidiaries of SBI till date *State Bank of Indore *State Bank of Bikaner & Jaipur *State Bank of Mysore *State Bank of Hyderabad *State Bank of Patiala * State Bank of Travancore Company pictures pic State Bank of Mysore pic pic pic pic PRODUCTS/ go OFFERED State Bank of Mysore offers its products and services in domains like Personal Banking. NRI operate. Agriculture. International. Corporate. SME. Domestic Treasury. (i) Personal Banking Current Accounts savings Bank Savings Plus condition Deposits Reinvestment Plan Multi Option Deposits Recurring Deposits Public Provident Fund Scheme lodgment Loans Car Loans Education Loans Consumer Durables Loans Personal Loans Loans to Pensioners Gold Loans Demand Loans on marge Deposits Demand Loans against Govt.Securities (ii) NRI Banking Foreign Currency Non occupier (Bank Scheme) Deposit Non Repatriable Rupee Deposits (NRNR) Non Resident (External) Rupee Deposit Accounts (NRE) Resident Foreign Currency Deposit Accounts (RFC) Ordinary Non Resident Rupee Accounts (NRO) Non Resident Special Rupee Accounts Housing Finance for NRIs (iii) Small Business Finance Retail Trade Professionals and Self Employed Business Enterprises delight Operators (iv) Agriculture Finance Agricultural Crop Loans Ag ricultural Gold Loans Produce Marketing Schemes Agricultural Term Loans Land Development Schemes Minor Irrigation Schemes Farm Mechanizations Schemes Kisan Credit Cards (v) Government Business State Govt. Central Govt. CBEC CBDT Defence Posts Telecom Central Civil Pensions Defence Pensions Telecom Pensions State Govt.Pensions PSU Retiring Employees Scheme (vi)Other Services Safe Deposit Lockers Safe Custody (vii) Miscellaneous Business Demand Drafts remittance Facilities (with Associate Banks) Remittance Facilities (with RBI & Govt. ) Collections (Cheques) RTGS/NEFT Collections (Bills) Demand Draft Purchases (Cheques) Demand Draft Purchases (Bills) RATES OF INTEREST WITH EFFECT FROM 4th May 2012. PERIOD RATE OF INTEREST (%) Up toRs. 15 lacs Above Rs. 15. acs 7 Days to 14 geezerhood 8. 50 15 long time to 45 days 6. 25 8. 50 46 days to 90 days 6. 50 8. 50 91 days to 179 days 8. 00 8. 50 180 days to 299 days 8. 50 8. 0 300 days 8. 50 8. 50 301 days to less than 1 year 8. 50 8. 50 1 year to less than vitamin D days 9. 25 9. 25 500 days 9. 25 9. 25 501 days to less than 2 years 9. 25 9. 5 2 years to less than 909 days 9. 25 9. 25 909 days 9. 25 9. 25 910 days to less than 3 years 9. 25 9. 25 3 years to less than 5 years 9. 25 9. 25 5 years and above 9. 25 9. 25 Table 31 Interest come in Interest Rates on Personal Segment Advances Housing Loans (w. e. f. 01. 11. 2011) NAME OF THE SCHEME Rate Of Interest (Base Rate 10. 50%p. a) 11Upto Rs 25 Lacs HOUSING LOAN Upto 20 Years BR+0. 75 . 5% Above 20 to inclusive of 25 BR+1. 00 11. 50% years Above Rs 25 lacs upto Rs 30 Lacs Upto 20 Years BR+0. 75 11. 25% Above 20 to inclusive of 25 BR+1. 00 11. 0% years