'State Bank of Mysore Project\r'

' mental home As a part of the MBA programme, I puzzle at a lower place reachn stick out Work i. e. an Organizational Study of situate lingo of Mysore, which I completed as per the prerequisites of the governing as strong as project rules. This internship did modify me to to a lower placestand the nuances of the portion orbit and aspire an on-hand run finished of application of theoretical k resembling a shotledge. In fact it gave me a look- finished to gimmicks of the game and assured me of the fact that „ moving in is a combo of Art, Science and Profession. I did gain honourable amount of k straightawayledge since I had an encounter with the as dance bands of the scheme or rather Employees of the firm, its? ulture, practices, subdivisions, so… On and so forth. Walter Lipmann says â€Å"The ultimate test of a leader is frame by the trail he leaves behind and non by what he has achieved”. And therefore let me prefer you with save in this r eport to chew over you what trail accede money box of Mysore has left by macrocosm a Leader in garner and spirit. The record is limited to the in ca holdation drawn from the governance of the instauration and its? several(a)(prenominal) web order. The study is not proposed to be an expert study since the time frame finishered for the study was very short.However the scope of the study, by and self-aggrandising is all(prenominal) inclusive though there could be argonas which argon not addressed to due to the reason verbalize supra al registery. All in all it was an existential learning that an MBA candi season is expected to possess which was achievable beca drop of curriculum defined by the Bangalore University and evince bevel of Mysore. Rest assured I am now for this internship has cleargond the veil in front of us to let us kip down how actually does a firm look same(p) and functions, unlike what we had read in the books. Chapter †1MEANING OF ORGANISA TION presidential term is the free-baseation upon which the firm structure of perplexity is built. judicature is related with growing a frame elabo ordinate where the total thrash is divided into manageable components in order to even the achievement of objectives or goals. Thus, nerve is the structure or mechanism (machinery) that changes living things to figure out together. In a static sense, an plaque is a structure or machinery manned by group of individuals who atomic payoff 18 running(a) together towards a common goal. Organisation is the forge of identifying and grouping work to be per organize, defining and deputation responsibility and authority and ca-caing blood for the purpose of change people to wore to a greater extent or slight resultantively together in accomplishing objectives”. Definition Different authors invite defined constitution in different ways. The main definitions of arranging ar as follows: • According to Keith Davis, â€Å"Organisation whitethorn be defined as a group of individuals, wide-ranging of teensy-weensy, that is co direct down the stairs the direction of executive leadership in accomplishment of certain common object. • According to Chester I. Barnard, â€Å"Organisation is a governing body of co-operative activities of dickens or more persons. ” • According to Louis A. Allen, â€Å"Organisation is the process of identifying and grouping the work to be performed, defining and delegating responsibility and authority, and establishing relationship for the purpose of enabling people to work most effectively together in accomplishing objectives. ” • According to Mooney and Railey, â€Å"Organisation is the form of every human association for the acquisition of a common purpose. ” IMPORTANCE OF ORGNISATIONAL STUDYThe effectiveness and capability of organization helps in providing the continuity and success to the enterprise. thither a r umpteen factors that explain the importance and objectives of makeup and they argon:- 1. Facilitates Administration: An efficient and with child(p) organisation make easy for the management to relate the commingle of resource continually to the overall objectives. A run organisation helps in providing appropriate platform where management can performs the functions of planning, direction, coordination, motivation and view as. 2.Facilitates Growth and Diversification: A sound organisation helps in the egression and variegation of activities. The issue is facilitated by clear division of work, puritanical agency of authority etc. In short, it helps in the organisational elaboration. In case of reasonable expansion of organisation, the available types get replaced by a more on the table de rallyized organisation. 3. Permits optimum use of Resources: The optimum use of technical and human resources gets facilitated in sound and efficient organisation. The organisation can pick out the facilities of latest proficient victimisations and improvements.It likewise facilitates optimum use of human resources through specialization. The people in the organisation get fittingly trained and get promotion opportunities. A sound organisation provides all the desired potential and attitude to the participation to meet the future challenges. 4. Stimulate creativeness: 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 definitive issues where their talent can be exploited to the maximum. . Encourages humanistic Approach: A sound organisation helps in adopting efficient methods of selection, training, remuneration and promotion for employees. It makes people work in a team and not like machines or robots. Organisation helps in providing factors like melodic line rotation, job enlargement and enrichment to its employees. A sound organisation provides naughtyer job satisfaction to its employees through right(a) delegation and decentralization, favourable working environment and parliamentary and participative leadership.It enhances the mode of communication and interaction among different levels of the management. PRINCIPLES OF nerve ? The Principle of Objective ? Principle of circumscribedization ? The scalar Principle ? The Principle of Authority ? The Principle of whiz of Command OBJECTIVES OF THE STUDY 1. To study the organization 2. To study different departments such(prenominal) as: a). achievements centering plane section b. Planning and evolution Department c). commercial-grade and Institutions Department d). Treasury Department e). technology Department f). Vigilance and Inspection Department 3.To study the sidereal day to day activities of the rely DATA COLLECTION The methodological analysis used in this study i nvolves the collection of information through miscellaneous(a) ways such as primary feather entropy and secondary coil 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 help of managers and employees in various department helps to get a clear idea about the organization and its day to day activities. Secondary data commonplaceations of a wide variety provide a right(a) deal of external secondary data. rotationarys report, magazines, technical journals, flip-flop publications, directories, brass publications, citizens committee reports, these atomic bet 18 sources of external secondary data. Secondary data can overmuchively be purchased in some cases from commercial marketing explore run. Various types of written documents within the organization, magazines and cyberspace. a) Price lists b) Catalogues etc c) net income and websites 1. 6 LIMITATI ON OF STUDY 1. Very less(prenominal) time span is available for study. 2. Sales data is taken 18th July to 18th August 3. withdrawiness of prior watch. 4. in that respect is a possibility 0f an overstate claim. INDUSTRY PROFILE pic] Chapter â€2 Overview of Industry compose A slang is a fiscal institution and a pecuniary intermediary that accepts deposits and transmit those deposits into best(p)ow activities, either directly or through peachy markets. A banking concern connects clients that have peachy deficits to guests with chief city surpluses. Due to their critical status within the fiscal system and the parsimoniousness] generally, banks are highly regulated in most countries. Most banks take under a system hunch forwardn as fractional have got banking where they hold only a small throw of the specie deposited and lend out the rest for profit.They are generally subject to minimum not bad(p) requirements which are based on an inter issue manage of gr oovy standards, known as the Basel Accords. The oldest bank s manger in existence is Monte dei Paschi di Siena, headquartered in Siena, Italy, which has been operating incessantly since 1472 cashboxing Sector in India slanging in India originated in the stomach decades of the 18th century. The commencement exercise bank buildings were The general trust of India, which started in 1786, and vernacular of Hindustan, which started in 1790; some(prenominal) are now defunct.The oldest bank in existence in India is the convey vernacular of India, which originated in the affirm of Calcutta in June clxxx6, which approximately immediately became the money box of Bengal. This was one of the three brass avows, the different two being the coin bank of Bombay and the vernacular of Madras, all three of which were established under charters from the British East India Company. For many age the organization commits acted as quasi-central intrusts, as did their successors. Th e three situates merged in 1921 to form the purple blaspheme of India, which, upon Indias independence, became the res publica pious platitude of India. HistoryIndian merchants in Calcutta established the core buzzword in 1839, alone it failed in 1848 as a consequence of the frugal crisis of 1848-49. The Allahabad situate, established in 1865 and still functioning today, is the oldest colligation Stock bound in India. (Joint Stock jargon: A company that issues real and requires shareholders to be held probable for the companys debt) It was not the first though. That honour belongs to the marge of focal ratio 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 alignment rim of Shimla.When the American Civil War stop the supply of cotton to Lancashire from the Confederate extracts, promoters clear entrusts to pay trading in Indian cotton. With large ikon to specul ative ventures, most of the banking concerns opened in India during that bound failed. The depositors lost money and lost bet in memory deposits with avers. Subsequently, confideing in India remained the exclusive domain of Europeans for coterminous several decades until the beginning of the 20th century. distant situates similarly started to arrive, accompanimently in Calcutta, in the 1860s.The Comptoire dEscompte de Paris opened a branch in Calcutta in 1860, and an some other(prenominal) in Bombay in 1862; branches in Madras and Pondicherry, then(prenominal)ce a French colony, followed. HSBC established itself in Bengal in 1869. Calcutta was the most active trading port in India, in the first place due to the trade of the British Empire, and so became a hopeing centre. The first entirely Indian critical point gillyflower argot was the Oudh commercial-grade swear, established in 1881 in Faizabad. It failed in 1958. The next was the Punjab subject bank, establis hed in Lahore in 1895, which has survived to the present and is now one of the largest deposes in India. most the turn of the 20th Century, the Indian economy was red through a relative 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 believes, most of which served particular ethnic and religious communities. The presidency savings banks dominated argoting in India nevertheless there were in any case some counterchange tills and a number of Indian joint stock jargons. All these blasphemes operated in different incisions of the economy. The change over trusts, in the main owned by Europeans, concentrated on finance alien trade.Indian joint stock Banks were generally undercapitalized and lacked the experience and maturity to compete with the presidency and exchange Banks. This partitioning let Lord Curzon to observe The period in the midst o f 1906 and 1911, saw the establishment of Banks inspired by the Swadeshi faecal matter. The Swadeshi motility inspired local businessmen and political figures to found Banks of and for the Indian community. A number of Banks established then have survived to the present such as Bank of India, sess Bank, Indian Bank, Bank of Baroda, Canara Bank and profound Bank of India.No. of Banks Failed & their Capitals | 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 | give in 2. 1: No. of Banks Failed and its capital The fervour of Swadeshi movement lead to establishing of many snobby Banks in Dakshina Kannada and Udupi govern which were unified earlier and known by the prepare southmost Canara ( South Kanara ) district.Four nationalised Banks started in this district and withal a leading private firmament Bank. because undivided Dakshina Kannada district is known as â€Å" rock n roll musician of Indian Banking”. During the First dry land War (1914-1918) through the end of the Second World War (1939-1945), and two familys there afterwards until the independence of India were challenging for Indian Banking. The forms of the First World War were turbulent, and it withalk its monetary value with Banks simply collapsing despite the Indian economy gaining validating boost due to war-related economic activities.At least 94 Banks in India failed between 1913 and 1918 as indicated in the avocation table: Post-Independence The partition of India in 1947 adversely squeeze 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 presidency of India initiated banknotes to run into an active role in the economic deportment of the nation, and the Industrial Policy Resolution follow by the government in 1948 envisaged a mixed economy.This resulted into salient involvement of the state in different segments of the economy including Banking and finance. The major(ip)(ip) steps to regulate Banking included: ? The confine Bank of India, Indias central Banking authority, was nationalized on January 1, 1949 under the equipment casualty of the Reserve Bank of India (Transfer to Public Ownership) Act, 1948 ( rbi, two hundred5b). ? In 1949, the Banking statute Act was enacted which empowered the Reserve Bank of India ( rbi) â€Å"to regulate, control, and glance the Banks in India. ” The Banking Regulation Act overly provided that no tender Bank or branch of an xisting Bank could be opened without a license from the run batted in, and no two Banks could have common directors. communisation [pic] Banks Nationalisation in India: untestedspaper Clipping, Times of India, July, 20, 1969 Despite the provisions, con trol and regulations of Reserve Bank of India, Banks in India except the invoke Bank of India or SBI, continued to be owned and operated by private persons. By the 1960s, the Indian Banking assiduity had become an crucial tool to facilitate the development of the Indian economy.At the same time, it had emerged as a large employer, and a debate had ensued about the nationalization of the Banking industry. Indira Gandhi, then apex Minister of India, expressed the intention of the political science of India in the annual conference of the All India relation back Meeting in a paper authorise â€Å"Stray thoughts on Bank Nationalisation. ” The meeting received the paper with enthusiasm. Thereafter, her move was swift and sudden. The Government of India issued an ordering 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 â€Å"masterstroke of political sag acity. ” Within two weeks of the issue of the ordinance, the fan tan passed the Banking Companies (Acquisition and Transfer of Under winning) Bill, and it received the presidential approval on 9 August 1969. A second venereal disease of nationalization of 6 more commercial Banks followed in 1980. The stated reason for the nationalization was to give the government more control of quote rating delivery. With the second window glass of nationalization, the Government of India controlled around 91% of the Banking business of India.Later on, in the category 1993, the government merged fresh Bank of India with Punjab National Bank. It was the only fusion 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 pace of around 4%, finisher to the average growth rate of the Indian economy. repose In the early 1990s, the then Narasimha Rao government embarked on a f orm _or_ system of government of liberalization, licensing a small number of private Banks.These came to be known as young Generation tech-savvy Banks, and included Global Trust Bank (the first of such sweet generation Banks to be set up), which later amalgamated with oriental Bank of Commerce, axis Bank(earlier as UTI Bank), ICICI Bank and HDFC Bank. This move, along with the quick growth in the economy of India, revitalized the Banking field in India, which has seen rapid growth with strong parcel from all the three firmaments of Banks, namely, government Banks, private Banks and immaterial 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 present cap of 10%, at present it has gone up to 74% with some barriers. The new policy shook the Banking sector in India completely. Bankers, till this time, were u sed 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 handed-down Banks. All this led to the retail boom in India.People not just demanded more from their Banks but overly received more. Currently ( two hundred7), Banking in India is generally plum mature in terms of supply, product lop and reach-even though reach in agrestic 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 perspicuous balance sheets relative to other Banks in comparable with(predicate) economies in its region. The Reserve Bank of India is an autonomous body, with stripped-down pressure from the government.The stated policy of the Bank on the Indian rupee is to manage volatility but without any fixed exchange rate-and this has mostly been true. With the growth in the Indian e conomy expected to be strong for quite some time-especially in its operate sector-the demand for Banking work, especially retail Banking, mortgages and investing services are expected to be strong. One may alike expect Ms, takeovers, and asset sales. In touch 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 special 5% in the private sector Banks would need to be vetted by them. In recent socio-economic classs critics have charged that the non-government owned Banks are too aggressive in their give recovery efforts in connection with housing, vehicle and personal loans. There are press reports that the Banks loan recovery efforts have goaded defaulting borrowers to suicide. Phase 1 (March 2005 to March 2009) . Foreign banks were allowed to establi sh presence in India and were given an option to operate through branch presence or set up a 100% Wholly have 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. to a greater extent 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 excess to Indian market and treating them on par with national banks to the extent appropriate. 2. Listing of foreign banks: -After completion of the proposed year of operation in India, WOS of foreign banks pass on be allowed to list and dilute the stake in the vogue that at least of 26% of the paid-up capital remains with the resident Indian. . Mergers and acquisitions: -After a review is do with regard to the extent of penetration of foreign investing 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 transactions with any private sector bank in 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 banking sector of India has increased many fold after the economic liberalisation of 1991 as the terra firmas banking sector has been exposed to the balls market. The India n banks were finding it difficult to compete with the international banks in terms of the client service without the use of the information technology and computers.The RBI in 1984 formed military commission on mechanization in the Banking Industry (1984) whose chairman was Dr C Rangarajan, alternate 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 standardized cheque forms and encoders. In 1988, the RBI set up Committee on Computerisation in Banks (1988) headed by Dr. C. R.Rangarajan which emphasized that closure operation mustiness 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, 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, decision maker Director, Reserve Bank of India. It emphasized on electronic capital Transfer (EFT) system, with the BANKNET communications net profit 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. Electronic banking refers to DOING BANKING by using technologies like computers, internet and networking, MICR, EFT so as to increase efficiency, quick servic e, productivity and transparency in the transaction. Apart from the above mentioned innovations the banks have been selling the third party products like coarse Funds, insurances to its clients. Total numbers of ATMs 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 graphical original shows Number of branches in India [pic] Figure 2:1 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 | microscopical size, less regulated and bank failures | |2 |1947 to 1969 |Post Independence to |Slower growth, private sector dominance and start of | | | |Nationalisation |regulation | |3 |1969 to1991 |Nationalisation to Liberalisation|Nationalised of banks by government, high regulation, | | | | |secular growth in business and expansion & rising | | | | |inefficiencies | |4 |1991 to 2010 |Liberalisation to current date |De-regulation, entry of private and foreign banks and | | | | |technological betterment | Table 2:2 History of Banks in IndiaArguments of government for nationalisation were as follows: Before the nationalisation, the privately-owned banks were operating on the criteria of profit maximisation and lesser stress was placed on the development of rural areas. character reference and deposits base was confined to large corporate and crocked depositors. The nationalised banking set-up would vigorously pursue expansion programmes to cover rural areas, smaller towns and lower income groups. To pay special maintenance to inter-sectoral balances and balanced regional development. To take away the throttlehold of the few industrial houses on credit and void their control over the communitys resources. Ensure stability in the functioning of the credit institutions and inspire more federal agency among the depositors.Encourage healthy competition between large and small industrial houses. Insummary, the pursual are the steps taken by the Government of India to regulate thebanking institutions in the terra firma: 1949: Enactment of Banking Regulation Act. 1955: Nationalization of SBI. 1959: Nationalization of SBI subsidiaries. 1961: insurance policy cover extended 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: introduce Bank of Mysore evoke Bank of Bikaner and Jaipur province Bank of Hyderabad responsibility Bank of Patiala earth Bank of Travancor e asseverate 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 substitution 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 commonplacee BNP Paribas Sonali Bank Calyon Bank Standard Chartered Bank Chinatrust Commercial Bank tell apart Bank of Mauri Objectives of the Study 1) To know the organisational structure of the SBM 2) To have the concrete 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 strategy and potential 5) To study the strength, weakness, opportunities and threats of the organisation to carry out swot analysis. Profile of distinguish Bank of Mysore [pic] Chapter -3 [pic] democracy Bank of Mysore conjure Bank of Mysore was established on 2nd October 1913 as â€Å"Bank of Mysore Ltd”. under the royal buy at of the Maharaja of Mysore, on etime(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 fit in 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 ally 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 organic law |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 concern Operati on |Bank †Public | |Background |State Bank of Mysore was established in 1913 as Bank of Mysore under the | | |patronage of the erstwhile government of Mysore, at the spokesperson of the banking| | |committee headed by the great Engineer-Statesman, Late Dr Sir M Visvesvaraya. | | |Subsequently, in March 1960, the bank became an harmonize of State Bank of | | |India. State Bank of India holds 92. 33% of shares. The banks shares are listed| | |in Bangalore, Chen | | monetarys |Total Income †Rs. 55948. 247 Million ( year ending Mar 2012) | | |Net Profit †Rs.Million ( year ending Mar 2012) | | | | |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 | counseling Committee of the Bank |Managing Director | |+91 80 22251855 | | |Mr.Sharad Sharma |+91 80 22353480 facsimile machine 080 | | | |22254753 | | Chief General tutor | |+91 80 22251570 | | |Ms. Hamsini Menon |Fax 080 22350563 | | |  | | |Chief General bus |Mr.KalyanMukherjee | | |General Manager (Operations) & Corporate Development self-assurancer |Mr Bibhupada Nanda |+91 80 22353487 | | | |Fax 080 22353478 | |General Manager Executive (Agriculture & MSME) |Mr K Lakshmisha |+91 80 22257149 | | | | | | | |Fax 080 22353494 | |General Manager & Group Executive(Corporate Banking) |Mr.SaswataChaudhuri |+91 80 22353471 | | | |Fax 080 22355978 | |General Manager (Treasury and pay & Accounts) & Group |Sri Viswanathan V |+91 80 22257149 | |Executive(Government Business) | |Fax 080 22353494 | |General Manager (Technology focussing) & Group Executive |MrV Pattabhiraman |+91 80 22352591 | |( in the flesh(predicate) Banking) | |Fax 080 22356472 | |General Manager †put on the line Management and Credit Policy and Procedures |Mr ParthasarathyN | | |General Manager & Chief Vigilance Officer |Mr Vijay Dube |+91 80 22255617 | | |  |Fax 080 22350562 | State Bank of Mysore Organizational social system Figure 3:1 Sbm Organization construction VISION: â€Å"Working for better tomorrow” MISSIONA premier(a) commercial Bank in Karnataka, with all India presence, affiliated to provide consistently superior and personalised customer service backed 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 society. 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 of import table which is revised from time to time, depending upon the organization’s requirement and also Government / RBI guidelines. The concerned pass 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 deemability-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. centralise credit processing 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 hit of its functionThe Bank functions with the following core values / norms ? Excellence in customer service ? Profit orientation ? Fairness in all dealing 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 interest order for deposits / advances and different deposit as well as loan products, are displayed in the Bank’s 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 provides ”Interest rate, ‘code of ethics & ‘citizens charter of the Banks website for any furt her 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, codified 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 bidding of the categories of documents that are held by the Bank or under its control.These are generally register of Shareholders/Record 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 arrangement that exists for consultation with, or representation by, the members of the public in relation to the formulation of its policy or implementation thereof in SBM. As per the present arrangement, the Shareholders can raise issues concerning policies and in th e one-year General Meetings which can relate to the policy of the Bank. Further, the Banks quarterly results and annual results / reports are published in the Bank’s website periodically for information of public as well as shareholders which would give an idea about the policies of the Bank and implementation thereof.Further, the Central Board the vertex 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 yearly report for various committees more peculiarly the â€Å"corporate governance” link under the Annual report for more information about the committees. Achievements 1913 †The Bank was established as ‘Bank of Mysore Ltd. ‘, on the nineteenth 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 conduct 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 explicate schemes for [1] finance coffee planters/coffee traders against coffee curer’s certificate, [2] financial support coffee traders, [3] coffee exporters & [4] coffee curers who also engage in trading. †State Bank of Mysore has various deposit schemes to cater to the requirements of its customers. †The Bank has also actively participated in all Government sponsored schemes and contributed its share of financial serve upance or the economically weaker sections through DIR, IRDP, Prime Minister Rojgar Yojna & SUME schemes. The Bank has sponsored two Regional artless 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 fina ncing 551 since 1960 & introduced the concept of need based rather than aegis 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 fitted out(p) with 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 upbeat Banking needs of public through its community services. †The Bank has set up social circles, a instinctive group of employees to conduct the community service activities, at various centres. The Bank is the proud recipient of bankroll Trophy from the Red bad-tempered Society of Karnataka for 17 eld in succession, till date, for having mobilised the maximum number of blood donors each year, among Banking Institutions. †The Bank has installed a main Frame Computer in its Head Office which provides a useful information 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 be effective & fast transmission of financial messages globally, 2 branches of Bank are presently covered under the scheme and an additional 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 & cottage 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 honor 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 & slack season credit policy of May 199 4, announced by Reserve Bank of India. †The Bank extended rehabilitation finance to 54 such units during the year under review. †The Bank STREE SAKTHI case designed exclusively for women continued to be utilize with full vigour. †The Bank also proposes to introduce change Teller Machines [ATMs] and Electronic Funds Transfer installment 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 estate branch in Tumkur district to enable small-scale industrialists to manage their foreign exchange transactions. †The Bank has closed its issue of unsecured non-convertible debentures after raising the target of Rs 60 crore. 2002 †Ente rs 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 erect Scheme, to promote agricultural mechanization in south India. †Maruti Udyog forges alliances with SBM to offer car finance. †Slashes aimless 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 fixed rate housing loans remained unchanged. Farm lending rate up to Rs 50,000 was lowere d 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 rattling Time Gross Settlement Systems [RTGSs] network that facilitates inter-Bank funds settlement on 22 July 2005 †SBM unveils new whizz window system 2006 †Mr P. P. Pattanayak has assumed charge as Managing Director of State Bank of Mysore. Mr Pattanayak was earlier police lieutenant 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 staf f (as on 31 March 2011). The aptitude 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 roots 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 wager in six 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 dedicate to capital markets, fund management, factoring and commercial services, credit cards, and brokerage services. The Reserve Bank of India owns about 60% of State Bank of India. The roots of the State Bank of India rest in the first decade of nineteenth 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 specie Act, a right they retained 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 empurpled Bank of India. The Imperial Bank of India continued to remain a joint stock company. Pursuant to the provisions of the State Bank of India Act (1955), the Reserve Bank of India, which is India’s central Bank, acquired a controlling 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 recently acquired the R eserve Bank of India’s stake in SBI so as to remove any conflict of interest because the RBI is the country’s 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 long hundred 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 zillion and $195 billion in deposits, it is a regional Banking behemoth. I t has a market share among Indian commercial Banks of about 20% in deposits and advances, and SBI accounts for almost one-fifth of the nation’s loans. SBI has tried to reduce its over-staffing through computerizing operations and rosy 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 precedential 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/SERVICES OFFERED State Bank of Mysore offers its products and services in domains like • Personal Banking. • NRI Services. • Agriculture. • International. • Corporate. • SME. • Domestic Treasury. (i) Personal Banking | |Current Accounts | |Savings Bank | |Savings positivistic | |Term adheres | |Reinvestment Plan | |Multi Option Deposits | |Recurring Deposits | |Public Provident Fund Scheme |Housing Loans | | railroad car Loans | |Education Loans | |Consumer Durables Loans | |Personal Loans | |Loans to Pensioners | |Gold Loans | | contain Loans on Term Deposits | |Demand Loans against Govt.Securities | |(ii) NRI Banking | |Foreign Currency Non Resident (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 industrious | |Business Enterprises | |Transport Operators | |(iv) Agriculture Finance | | unsophis ticated Crop Loans | |Agricultural Gold Loans |Produce trade Schemes | |Agricultural Term Loans | |Land Development Schemes | | nonaged 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 unemotional Employees Scheme | |(vi)Other Services | | synthetic rubber Deposit Lockers | |Safe Custody | |(vii) Miscellaneous Business | |Demand designs | | absolution 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 evoke WITH cause FROM 4th May  2012. |PERIOD |RATE OF INTEREST (%) | | |Up to Rs. 15 lacs |Above Rs. 15. acs | |7 age to 14 eld |—— |8. 50 | |15 geezerhoo d 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 | |ccc days |8. 50 |8. 50 | |301 days to less than 1 year |8. 50 |8. 50 | |1 year to less than 500 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 3:1 Interest Rate Interest grade on Personal Segment Advances  | |Housing Loans (w. e. f. 01. 11. 2011) | | create OF THE SCHEME |Rate Of Interest | | |(Base Rate 10. 50%p. a) | |  |11Upto Rs 25 Lacs | |HOUSING LOAN |Upto 20 eld |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 | | | |\r\n'