Bank Of Maharashtra.docx

CHAPTER 1 Introduction of Report:The students get an opportunity to carry out In-plant training. I got an opportunity to carry out In-plant Training in the Bank of Maharashtra which is related to banking services and day to day banking operations. I learned about strengths and weaknesses of financial status of the bank provide different services to their customers and also recover the debt. All the staff members of the branch were cooperative and supportive. It was a really good experience to move and work with different departments. I have observed that how each department does their work as per the given requirement of the bank to accomplish vision and mission of the bank. I have learned lot of things during the Inplant Training project at Bank of Maharashtra. I learnt the functioning of different department and their importance from management perspective

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1.1 Need of Study: For any MBA student, learning is a combination of theory and practice which is an invaluable asset.  This implant training is a stepping stones, which will groom me for my future in the

industrial world.  To enable the students to apply management concepts and think about the

organization problem.  To enable the students to interact with personal from organization to elicit their

cooperation.  To enable the students to prepare a complete project report including study of a

problem area and developing solution.

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1.2 Scope and Limitations of Study: The main reason behind making or researching this project is to know how various

departments function to achieve goals and gain a positive perspective.  This study will expand the scope of available career opportunities in the financial

domain of industries.  There are some restrictions on disclosing the statistical data.  Practical problems & working conditions can be understood by doing this project.  Project is limited to only Bank of Maharashtra Kranti Chowk branch, Aurangabad.

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1.3 Objectives: To get exposure to banking environment, this cannot be simulated in the institute.  To work under office discipline.  To understand the work of employees, their habits, attitudes and approach to

problems along with the practices followed at Bank of Maharashtra.  To realize the size and scale of operations in banking sector.  To learn more about various financial products and services of Bank of Maharashtra

available in market.

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CHAPTER 2

BANK AND BANKING SYSTEM

BANK A bank is a financial intermediary that creates credit by lending money to a borrower, thereby creating a corresponding deposit on the bank's balance sheet. Lending activities can be performed either directly or indirectly through capital markets. Due to their importance in the financial system and influence on national economies, banks are highly regulated in most countries. Most nations have institutionalized a system known as fractional reserve banking under which banks hold liquid assets equal to only a portion of their current liabilities. In addition to other regulations intended to ensure liquidity, banks are generally subject to minimum capital requirements based on an international set of capital standards, known as the Basel Accords.

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INDIAN BANKING STRUCTURE Banking in India in the modern sense originated in the last decades of the 18 century. Among the first banks were the Bank of Hindustan, which was established in 1770 and liquidated in 1829-32; and the General Bank of India, established 1786 but failed in1791. The largest bank, and the oldest still in existence, is the State Bank of India. It originated as the Bank of Calcutta in June 1806. In 1809, it was renamed as the Bank of Bengal. This was one of the three banks funded by a presidency government; the other two were the bank the Bank of Madras. The three banks were merged in 1921 to the Imperial Bank of India, which upon India's independence, became the State Bank of India in 1995. For many years the presidency banks had acted as quasi-central banks, as did their successors, until the Reserve Bank of India was established in 1935, under the Reserve Bank of India Act, 1934. In 1960, the State Banks of India was given control of eight state- associated banks under the State Bank of India (Subsidiary Banks) Act, 1959. These are now called its associate banks. In 1969 the Indian government nationalized 14 major private banks. In 1980, 6 more private banks were nationalized. The Indian banking sector is broadly classified into schedule banks and nonscheduled banks. The scheduled banks are those which are included under the 2nd Schedule of the Reserve Bank of India Act, 1934. The schedule banks are further classified into: nationalized banks; State Bank of India and its associates; Regional Rural Banks (RRBs); foreign banks; and other Indian private sector banks.

The term commercial bank refers to both scheduled and non-scheduled commercial banks which are regulated under the Banking Regulation Act, 1949. Generally banking in India is fairly mature in terms of supply, product range and reach-even though reach in rural India and to the poor still remains a challenge.

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Profile of the Bank of Maharashtra Bank of Maharashtra is a major public sector bank in India. Government of India holds 81.61% of the total shares. The Bank has 15 million customers across the length and breadth of the country served through 1897 branches by any public sector bank in the state of Maharashtra.

The bank was founded by V. G. Kale and D. K. Sathe and registered as a banking company on September 1935 at Pune. The bank was registered on 16 September 1935 with an authorized capital of ₹ 1 million, and began business on 8 February 1936. Bank's financial assistance to small units has given birth to many of today's industrial houses. After nationalization in 1969, the bank expanded rapidly.

Narendra Singh who had assumed the office of Chairman and Managing Director from 1 February 2012, left his office on 30 September 2013 on attaining superannuation. Sushi Muhnot was the Chairman and Managing Director before Ravindra Prabhakar Marathe. Ravindra Prabhakar Marathe is the current MD and CEO.

Commonly known as a common man's bank, Bank of Maharashtra adopts a philosophy of "Technology with personal touch", and follows its motto stating "One Family, One Bank, Bank of Maharashtra".

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HISTORY

1935 - 1946  Commenced operations on 08-02-1936 in Pune.  Second branch of the bank was opened in 1938 at Fort, Bombay.  In 1940, third branch came up at Deccan Gymkhana, Pune.  In 1944, Status as Scheduled Bank obtained.  In 1946, Deposits crossed Rs One crore marks. Formed fully owned subsidiary, The Maharashtra Executor & Trustee Company. First branch outside Maharashtra opened in Hubli (Mysore Starte, Now Karnataka).

1949 - 1978  In 1949, Expansion to AP: Hyderabad branch opened  In 1963, Expansion to Goa: Panjim Branch opened  In 1966, Expansion to Madhya Pradesh: Indore branch opened. Entered in Gujarat: Baroda branch opened  In 1969, Nationalised alongwith 13 other Banks. Entry in Delhi by opening Karolbagh branch on 19-12-69.  In 1974, Deposit base crossed Rs.100 Crore mark.  In 1976, Marathwada Grameena Bank, first RRB established on 26-08-1976.  In 1978, New Head Office building inaugurated by Honorable Prime Minister of India Shri. Morarji Desai  Deposits cross the figure of Rs. 500 Crores

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1979 - 1987  "Mahabank Agricultural Research and Rural Development Foundation", registered as a public trust, was established for undertaking research and extension work and to provide more extensive services to farmers.  500th branch in Maharashtra state was opened at the hands of the then Prime Minister, Mrs. Indira Gandhi at Nariman Point, Mumbai. First Advance Ledger Posting Machine (ALPM) was installed at the branch.  Golden Jubilee Year Celebrations launched at the hands of Dr.Manmohan Singh, Governor Reserve Bank of India.  Thane Grameena Bank sponsored.  The 1000th branch of the Bank was inaugurated at Indira vasahat, Bibwewadi, Pune at the auspicious hands of Dr.Shankar Dayal Sharma, the Honorable Vice President of India.

1991 - 2009  "Mahabank Farmer Credit Card" was launched. Entered in to Domestic Credit Card Business. Main frame Computer installed. Became member of the SWIFT.  Diamond Jubilee celebrations - Dr C Rangarajan the RBI Governor was the Chief Guest.

 Deposits crossed Rs 5000 crore mark.  Moved into "A" category from the earlier "C" category. Autonomy obtained.  Deposits crossed Rs 10000 crore mark.  Public Issue of Shares - 24% owned by Public. Listed in BSE and NSE.  Bancassurance and Mutual Fund distribution business started.  Crossed total business level of Rs.50000 Crore. Branch CBS Project started.  Entered in to 75th year of dedicated service to the Nation. Adopted 75

underdeveloped villages for integrated overall development.

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 HEAD OFFICE Lokmangal, 1501, Shivaji Nagar, Pune - 411005

ZONAL OFFICE

Mahabank Bhavan, C-3, N-1 Town Centre, CIDCO, Aurangabad - 431003

THE BANK HAS TWO WHOLLY OWNED SUBSIDIARIES.  Bank of Maharashtra, Asset Management Arm  The Maharashtra Executor & Trustee Co.PVT LTD

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KEY MILESTONES 2010  CBS of branches achieved Total Business crossed Rs One lakh crore.  Opened 76 branches in the platinum Year taking the total to 1506.  Platinum Jubilee Year concluding ceremony at the hands of the then Finance Minister, Shri Pranab Mukherjee held at Vigyan Bhavan, New Delhi.  New initiatives like Mahachetana, opening of E-lounges in Pune, Mumbai and Delhi, Micro Asset Recovery cells were implemented.

2011  First SHG Branch opened in Pune.  Bank sponsored Maharashtra Garmin Bank achieved 100% CBS in record 77 days.  7th anniversary of Foundation day celebrations at the hands of Honorable Finance Minister, Shri Pranab Mukherjee dedicating 5 specialized branches to SHGS and opening of 5 Mid - Corporate branches on the occasion.  First ever visit of Union Finance Minister to Bank's Central Office - Honorable Finance Minister, Shri Pranab Mukherjee visits Lokmangal, the Bank's Head quarters in Pune on 7-11-2011.

2012

 Honorable Union Finance Minister Shri P Chidambaram inaugurates the Bank's 1624th branch at Rajgambiram on 25.08.2012.  Sept 2012: Bank's total business crossed Rs 1, 50,000 crore and reached the level of Rs. 1, 51,320 crore.  Bank of Maharashtra awarded "Best Banker" - Customer Friendliness" for 2012 by The Sunday Standard. Received the Dun & Bradstreet - Polaris Financial Technology Banking Award 2012 as Best Public Sector Bank under the category "Asset Quality ".  BoM hosted Bancon 2012 in Pune on 24th- 25th November 2012. Honorable Union Finance Minister Shri P. Chidambaram inaugurated the Conference. 12

2013  Launch of Rupay card launch by Sonia Gandhi in Delhi.  50 branches opened on 15th August 2013.  Total Business Crossed Rs. 2.00 Lakh Crore.

2014  162 new branches; largest number to be opened in a single year, opened taking the branch network to 1890  1129 ATMs installed taking the total number to 1827  Banks own EFT Switch implemented live.

2015  26 new branches; Branch network reached 1889  Launched "Mahamobile"- Mobile Banking Application  ISO 27001:2013 certification for its Data Centre, DR Centre, PMO & HO-IT.

2016  Bank crossed milestone figure of Rs. 2.50 Lakh Crore  Implemented "MAHASECURE" - add on application for Internet Banking; because of which no phising attacks have been reported.  "Best Financial Inclusion Initiative” award by IBA - Banking Technology.

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ORGANIZATIONAL STRUCTURE

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BRANCH STRUCTURE :

Name

Designation

Mr.B.G.Surshe

Branch Manager

Mr.Pramod Vispute

Foreign Exchange Manager

Mr.Kinshuk Bhowmick

Operation Head

Mr.Ajay Kendre

Agricultural Officer

Ms.Chanda Rathod

Clerk

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2.1 VISION

Vision To be a vibrant, forward looking, techno - savvy, customer centric bank serving diverse sections of the society, enhancing shareholders' and employees' value while moving towards global presence.

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2.2 MISSION

Mission 

To ensure quick and efficient response to customer expectations.



To innovate products and services to cater to diverse sections of society.



To adopt latest technology on a continuous basis.



To build proactive, professional and involved workforce.



To enhance the shareholders' wealth through best practices and corporate governance.



To enter international arena through branch network.

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2.3 OBJECTIVES

Objectives of Bank of Maharashtra  To Maintain price stability  To support their objectives of the government economic policy. Especially growth, Employment and reducing social gaps  Supporting the stability of the financial system  To provide full range of financial product and banking services

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2.4 ACHIEVEMENT

Achievements

Bank has bagged the prestigious award in the 12th “Banking Technology Excellence Awards 2015-16” organized by Institute for Development & Research in Banking Technology (IDRBT), which is established by RBI. Bank has been awarded as the ‘Best Bank among Mid-Sized Banks’ in the category -“Use of Technology for Financial Inclusion”.

Bank bagged prestigious SKOCH AWARD 2016 in the field of Financial Inclusion.

Our Bank won two awards 1.

Best Bank Award for Financial Inclusion for Emerging Bank – Winner

2.

CSR & Business Responsibility Award for Emerging Bank - Runner Up

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Bank was conferred as BEST BANK-PUBLIC SECTOR in BFSI Awards-2015 by World HRD Congress in recognition of the Best performances in Banking Category.

Financial Express India’s Best Bank Award Bank of Maharashtra is seen receiving Winner Award– ‘Growth’ Category with Devendra Fadnavis, Chief Minister of Maharashtra.

Bank received “Greentech Fire Safety & Security Award 2013 “by Greentech Foundation in Gold category.

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Bank of Maharashtra has been awarded "Business Excellence in Banking Award 2013" by Time

Research.

Her Excellency, President Smt. Pratibha Devi Singh Patil handing over the Indira Gandhi Rajbhasha shield (Second Prize) for outstanding work in Hindi to Chairman and Managing Director of Bank of Maharashtra.

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Chapter 3

PRODUCT PROFILE OF THE BANK 1. Accounts  Saving Account  Current Account  Salary Account

2. Investment  Mutual Funds  Fixed Deposits  11.6% Bonds  Public Provident Fund

3. Insurance  Mahabank - Swasthya Yojna  Health Insurance  Bancassurance  Pradhan Mantri Suraksha Bima Yojna  Pradhan Mantri Jeevan Bima Yojna

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ACCOUNT OPENING PROCEDURE

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COMPETITORS

Bank of India is Bank of Maharashtra’s biggest rival. Bank of India was founded in 1906, and is headquartered in Mumbai, Maharashtra. Like Bank of Maharashtra, Bank of India also works within the Banks sector. Bank of India generates $1.1B more revenue vs. Bank of Maharashtra.

Dhanlaxmi bank is one of Bank of Maharashtra's top competitors. Dhanlaxmi Bank's headquarters is in Thrissur, Kerala, and was founded in 1927. Like Bank of Maharashtra, Dhanlaxmi Bank also works within the Banks sector. Dhanlaxmi Bank generates 10% of Bank of Maharashtra’s revenue.

Punjab National Bank is seen as one of Bank of Maharashtra's top competitors. Punjab National Bank is a Public company that was founded in 1895 in New Delhi, Delhi. Punjab National Bank operates in the Banks industry. Compared to Bank of Maharashtra, Punjab National Bank has 56,405 more employees.

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Axis Bank is the third largest of the private-sector banks in India offering a comprehensive suite of financial products. The bank has its head office in Mumbai and registered office in Ahmedabad. It has 3,703 branches, 13,814 ATMs, [2] and nine international offices.

HDFC Bank Limited is an Indian banking and financial services company headquartered in Mumbai, Maharashtra. It has 88,253 permanent employees as on 31st March 2018 and has a presence in Bahrain, Hong Kong and Dubai. HDFC Bank is India’s largest private sector lender by assets. It is the largest bank in India by market capitalization as of February 2016. It was ranked 69th in 2016 Brands Top 100 Most Valuable Global Brands.

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CHAPTER 4 STUDY OF THE DEPARTMENTS

4.1 HUMAN RESOURSE DEPARTMENT The process of hiring and developing of employees is necessary so that they become more valuable to the organization. Human Resource Management includes conducting job analyses, planning personnel needs, recruiting the right people for the job, orienting and training, managing wages and salaries, providing benefits and incentives, evaluating performance, resolving disputes, and communicating with all employees at all levels. Examples of core qualities of HR management are extensive knowledge of the industry, leadership, and effective negotiation skills. Formerly HRM was called personnel management. RESPONSIBILITIES OF HUMAN RESOURSE DEPARTMENT 

HRD maintain daily attendance record through branch manager via E – mail.



Take decisions for approval regarding leave notes.



He takes the decision related to the recruitment, selection and training of the candidates. He talks to the consultant related to the recruitment of the qualified candidates. He also does screening of the candidates, shortlist the candidate and takes the first round of the interview.



He maintains the database of the candidates to come for an interview. He also maintains personal file of each employee. He also completes the joining formalities of each employee.



They are taking surprising visit in every branch and collect information about employees.



He is responsible for the monthly salary of the employees as per their attendants and passing to the Branch Manager.

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Functions of HRD 

Ultimate aim of the resources function is to build and manage a motivated pool of professionals delivering optimum value to customers.



Major platforms on which the success of the bank’s corporate rate strategy rests is bringing on board the requisite skills.

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Bank of Maharashtra Recruitment Process

HRD functions in Bank of Maharashtra:

I] Recruitment:  Collection of branch wise as well as department’s manpower requirement.  Taking approval for filling vacancies from board of director’s.  Setting criteria for post’s (clerk, officer, specialist officer, probationary officer.)

 Conducting written exam and Interviews of candidates.  On boarding of new joiners.

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II] Training:  Conducting Induction program for new joiners.  Conducting training needs analysis of employees.  Preparing topics and activities for fulfilling training needs.

 Preparation of training calendar.  Successful execution of training programs.

III] Performance Management:  Preparation of performance review system.  Conducting performance review process  Conducting performance appraisal process.  Assessing potential performance. IV] Legal:  Checking legal aspects of processes.  Coordinating in legal cases of bank.  Legal issues in appointing on contract base employees.

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4.2MARKETING DEPARTMENT

Marketing is defined by the American Marketing Association as "the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large." The term developed from the original meaning which referred literally to going to market with goods for sale. From a sales process engineering perspective, marketing is "a set of processes that are interconnected and interdependent with other functions" of a business aimed at achieving customer interest and satisfaction.

The Chartered Institute of Marketing defines marketing as "the management process responsible for identifying, anticipating and satisfying customer requirements profitably." A similar concept is the value-based marketing which states the role of marketing to contribute to increasing shareholder value. In this context, marketing can be defined as "the management process that seeks to maximize returns to shareholders by developing relationships with valued customers and creating a competitive advantage."

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MARKETING MIX-

The marketing mix consist of everything the firm can do influence the demand for its product. The many possibilities collected into four groups of variables known as 4P’s; Product, Price, Place and Promotion.

1. Product 

Banking and Savings



Corporate Finance



Investment and Insurance



Loans and Borrowings



Agricultural Banking Services

2. Price  Customers get value for money

3. Place – 

Large number of branches



Customized home service



Widespread network of ATM’s

4. Promotions 

Advertising



Print Media



Publicity

 Sales Promotion

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4.3 Finance Department:In this modern era it is very easy to know how much important the finance is in the business. As a current position of the market is totally different from ancient where it was very easy to get finance. But now a days it is not so, it is very difficult task to raise funds from market. As today people are facing lots of problems and have less confidence on the market so it is difficult to raise fund without proper planning. Finance is the field that deals with allocation of assets and liabilities. A key point in finance is the Time value of money. The company should manage to get sufficient finance. The company should use to keep proper planning for the finance of its own funds and also borrowed funds. We can define financial management as a task of acquisition and utilization of funds needed in the business in a manner so that organizations goal can be achieved.

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Particulars

Mar’18

Liabilities

Mar’17

Mar’16

Mar’15

Mar’14

12 Months 12 Months 12 Months

12 Months

12 Months

Share Capital

2598.45

1168.33

1168.3

1063.18

1427.10

Reserve & Surplus

7345.51

5004.73

6323.03

5626.02

4875.47

Net Worth

9943.96

7379.52

8787.14

8067.33

7368.14

Secured loan

4063.71

8136.65

9228.10

11126.72

8326.47

Unsecured loan

138981.18 139052.84

138989.82

122118.94

116803.09

TOTAL LIABILITIES

152988.85 154569.01

157005.06

141313.00

132497.70

Gross Block

1516.68

1586.08

1694.42

1432.17

1446.01

(-) Acc. Depreciation

.00

.00

.00

.00

.00

Net Block

1516.68

1586.08

1694.42

1432.17

1446.01

Capital work in progress

.00

.00

.00

.00

.00

Investments

43622.80

38590.18

36230.87

36714.79

37249.58

Inventories

.00

.00

.00

.00

.00

Sundry Debtors

.00

.00

.00

.00

.00

Cash & Bank

15883.96

16642.02

9320.15

6753.11

6102.30

Loans & Advances

95305.31

102505.70

113711.89

101118.71

91522.16

Total Current Assets

111189.27 119147.72

123032.04

107871.83

97624.46

Current Liabilities

3339.89

4754.97

3952.26

4705.79

3822.35

Provisions

.00

.00

.00

.00

.00

Total Current

3339.89

4754.97

3952.26

4705.79

3822.35

119079.78

103166.04

93802.11

Assets

Liabilities NET CURRENT

107849.38 114392.75

ASSETS 33

Misc. Expenses

.00

.00

TOTAL ASSETS

152988.85 155775.47

.00

.00

.00

157005.06

141313.00

132497.70

(A+B+C+D+E)

Share Capital

3000 2000 1000 Share Capital 0

2018 2017

Interpretation  In Balance Sheet of Bank of Maharashtra  Share Capital Of March 2017 is 1168.33  Share Capital Of March 2018 is 2598.45  The Balance Sheet Shows Share Capital Of Bank Of Maharashtra Has Increases in March 2018

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Total Liabilities 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

Total Liabilities

2018 2017

Interpretation  In Balance Sheet of Bank of Maharashtra  Total Liabilities Of March 2017 is 152988.85  Share Capital Of March 2018 is 154569.01  The Balance Sheet Shows Total Liabilities Of Bank Of Maharashtra Has Increases in March 2018

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Profit & Loss account of Bank of Maharashtra Particulae

------------------- in Rs. Cr. ------------------Mar 18

Mar 17

12 mths

12 mths

Interest / Discount on Advances / Bills

7,072.71

8,469.96

Income from Investments

2,962.41

2,829.47

589.68

401.91

INCOME

Interest on Balance with RBI and Other Inter-Bank funds Others Total Interest Earned

471.62

360.62

11,096.41

12,061.96

Other Income

1,506.05

1,508.07

Total Income

12,602.46

13,570.03

Interest Expended

7,706.68

8,887.27

Payments to and Provisions for Employees

1,618.06

1,807.29

Depreciation

128.59

117.62

Operating Expenses (excludes Employee Cost & Depreciation)

957.73

930.78

2,704.39

2,855.70

EXPENDITURE

Total Operating Expenses Provision Towards Income Tax

-151.48

81.36

Provision Towards Deferred Tax

-1,968.65

-851.92

Other Provisions and Contingencies

5,457.18

3,970.14

Total Provisions and Contingencies

3,337.05

3,199.58

Total Expenditure

13,748.11

14,942.54

Net Profit / Loss for The Year

-1,145.65

-1,372.51

Net Profit / Loss After EI & Prior Year Items

-1,145.65

-1,372.51

Profit / Loss Brought Forward

-1,392.00

59.64

Total Profit / Loss available for Appropriations

-2,537.65

-1,312.87

Transfer To / From Statutory Reserve

0.00

0.00

Transfer To / From Special Reserve

0.00

0.00

Transfer To / From Capital Reserve

0.00

87.25

Transfer To / From Investment Reserve

-20.48

-8.12

Transfer To / From Revenue And Other Reserves

26.49

0.00

Equity Share Dividend

0.00

0.00

Preference Share Dividend

0.00

0.00

Tax On Dividend

0.00

0.00

Balance Carried Over To Balance Sheet

-2,543.66

-1,392.00

Total Appropriations

-2,537.65

-1,312.87

-8.98

-11.75

APPROPRIATIONS

OTHER INFORMATION EARNINGS PER SHARE Basic EPS (Rs.) Diluted EPS (Rs.)

-8.98

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-11.75

DIVIDEND PERCENTAGE Equity Dividend Rate (%)

0.00

Net Profit / Loss For The Year 0% -10%

2017

2018

-20% -30% -40% -50%

Net Profit / Loss For The Year

-60% -70% -80% -90% -100%

Interpretations : 

In the Profit and Loss Account Of Bank of Maharashtra



Balance sheet shows That Net Profit / Loss for The Year



In 2017 Bank Has loss for -1372.51



And Again 2018 Bank has Losses For -1145.65

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0.00

4.4 OPERATION DEPARTMENT:-

Financial management is the operational activity of a bank that is responsible for obtaining and effectively utilizing the funds necessary for efficient operation. Financial management means the efficient and effective management of money (funds) in such a manner as to accomplish the objectives of the organization. It is the specialize function directly associated with the top management.

Highlights of Operation Department 

Responsible for timely processing of bank transactions like – Funds transfer, Cheques.



Bank collects cheques from their customers.



To receive daily clearing cheques & transfer cheques.



Cross verification of clearing cheques.



Real Time Gross Settlement (RTGS) & National Electronic Fund Transfer (NEFT) concepts uses for transferring funds.



Bank provides arrangement of lockers for the safe custody of valuable assets of their customers such as Gold, silver, legal documents etc.

Clearing System

The clearing system is local and confined to a defined jurisdiction covering all the banks and branches situated in the area under a particular zone. The clearing house is a voluntary association of banks under the management of a bank where the settlement accounts are maintained. Wherever Reserve Bank of India has its office (and a banking department), the clearing house is managed by it. In the absence of an office of the Reserve Bank, the clearing house is managed by the State Bank of India, its associate banks and in a few cases by public sector banks.

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In India there are about 1050 cheques clearing houses. These clearing houses clear and settle transactions relating to various types of paper based instruments like cheques, drafts, payment orders, interest / dividend warrants, etc. In 40 of these clearing houses, cheque processing centers (CPCs) using MICR (Magnetic Ink Character Recognition) technology have been set up. At 14 more clearing houses, MICR cheque processing systems are proposed to be set up. The Reserve Bank has issued the Uniform Regulations and Rules for Bankers’ Clearing Houses (URRBCH) which has been adopted by all the clearing houses.

Clearing process – The clearing process begins with the deposit of a cheque/other clearing instruments referred above in a bank. The bank arranges the cheques submitted to it for clearing bank wise and presents it in the clearing house to other banks. When there are more than one bank branch for a bank in the clearing area, they would have a coordinating branch/ service branch to take care of presenting the cheques to the clearing house. Upon receipt of the cheques/other instruments, they are passed for payment if the funds are available and the banker is satisfied about the genuineness of the instrument. The cheques that are unpaid are returned to the presenting bank through another clearing called the Return Clearing. The realization of the funds occurs after the completion of return clearing and by the absence of an unpaid cheque.

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Time of clearing process: General time – 10:00 to 12:30

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ELECRONIC FUND TRANSFER SYSTEM There are various types of electronic clearing systems functioning in the retail payments area. Some of them are RTGS & NEFT etc.

REAL TIME GROSS SETTLEMENT Real-time gross settlement systems are specialist funds transfer systems where the transfer of money or securities takes place from one bank to another on a "real time" and on a "gross" basis. Settlement in "real time" means a payment transaction is not subjected to any waiting period, with transactions being settled as soon as they are processed. "Gross settlement" means the transaction is settled on one-to-one basis without bundling or netting with any other transaction. "Settlement" means that once processed, payments are final and irrevocable.

RTGS systems are typically used for high-value transactions that require and receive immediate clearing. In some countries the RTGS systems may be the only way to get same day cleared funds and so may be used when payments need to be settled urgently. However, most regular payments would not use a RTGS system, but instead would use a national payment system or network that allows participants to batch and net payments. RTGS payments typically incur higher transaction costs and usually operated by a country's central bank.

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NATIONAL ELECTRONIC FUND SYSTEM National Electronic Funds Transfer (NEFT) is an electronic funds transfer system maintained by the Reserve Bank of India (RBI). Started in November 2005. NEFT is a facility enabling bank customers in India to transfer funds between any two NEFT-enabled bank accounts on a one-to-one basis. It is done via electronic messages. Unlike Real-time gross settlement (RTGS), fund transfers through the NEFT system do not occur in real-time basis. NEFT settles fund transfers in half-hourly batches with 23 settlements occurring between 8:00 AM and 7:30 PM on week days and the 1st, 3rd and 5th Saturday of the calendar month. Transfers initiated outside this time period are settled at the next available window. No settlements are made on the second and fourth Saturday of the month, or on Sundays, or on public holidays.

NEFT facilities are available at 74,680 branches offices of 101 banks across the country (out of around 82,400 bank branches) as of January 2011, and well as online through the website of NEFT-enabled banks and work on a batch mode. NEFT has gained popularity due to its saving on time and the ease with which the transactions can be concluded, This reflects from the fact that 42% of all electronic transactions in the 2008 financial year were NEFT transactions.

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4.5 Foreign Exchange Department The foreign exchange department is a highly specialized department in a bank. A wide variety of services are rendered by a foreign exchange department. The functions of a foreign exchange department Broadly, the functions of a foreign exchange department may be classified as: 1. Financing exports, 2. Financing imports, 3. Providing remittance facilities, 4. Dealing in foreign exchange, and 5. Furnishing credit information.

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1. Financing exports: The financial needs of the exporter right from the moment he conceives of the project and till he realizes export proceeds are provided by banks. The credit extended to the exporter to procure raw materials, process them and prepare them for shipment to the importer is known as packing credit or pre-shipment credit. On shipping the goods the exporter would draw a bill of exchange, with or without a letter of credit and discount it with the bank. The credit extended to the exporter after shipment is made is known as post-shipment finance. The exporter may be eligible to receive cash incentives from the Government on exports. Therefore, the export bills are to be collected through a bank. The bank may also execute guarantees on behalf of its export customers. Following are the functions that Foreign exchange department performs to facilitate the transaction of foreign exchange:

Facilitating import and export trades Providing funded and non-funded credit facility 44

Providing non-commercial remittance Maintaining foreign currency accounts Selling foreign currency bond Preparing and submitting statements relating to foreign currency The following sections perform the functions mentioned above: Import Section Export Section Foreign Remittance Section

CHAPTER 5 SWOT ANALYSIS OF THE BANK STRENGHTS 

Promoters are experienced and qualified professionals.



Market driven organization.



Diversified customer base.



Limited exposure per client to ensure low risk.



Low cost operation.

 High margin of profit.

WEAKNESS 45



Risk Averse



Non Performing Asset Level Rises (NPA)

OPPORTUNITIES 

Big and diverse market size.



Increasing Non – SLR investments to increase profits.

 Making their credit cards profitable.

THREATS 

Multinationals, banks and big finance companies are eying on the same market segment.

 Government policy and adhoc fiscal policy changes.

CHAPTER 6 FINDINGS  Bank of Maharashtra is an Indian multinational, public sector banking and financial services company. It is a government-owned corporation with its headquarters in pune, Maharashtra.  Bank of Maharashtra is coping up with the other nationalized bank by launching its MAHABANK App.  Bank of Maharashtra providing excellent service to its customers.  The bank of Maharashtra is providing assistance to the borrower.  The bank of Maharashtra using bank 24 software for keeping up the track of transaction. 46

 It includes function for universal banking core banking payments wealth management and money market compliance insurance securities processing, financial inclusion and treasury operations.  The software written in JAVA, and its author of financial network and developer is Tata consultancy 

Car loan of bank of Maharashtra is very demanding.

CHAPTER 7 CONCLUSION  Bank of Maharashtra has developed manifold in short period of time due to facilities and services provided to customers and this growth rate can be keep it up. The working staffs are very co-operative in nature and due to that the bank will also get good benefit. 

Bank of Maharashtra has provided their customer net banking facilities and due to that transactions are done fast. Charges at Bank of Maharashtra are on lower side when we compare it with other banks. 47



Bank of Maharashtra has differentiated itself very well on the basis of high level service and product quality.



They have successfully implemented the change and due to this their market share increased only despite of tough competition prevails.



In this study I found that the bond of BOM with its customers is very strong, because BOM mainly focuses on retaining their customers.

 This study finds that however BOM is not the leading public sector bank but its vast range of products and availability of options make it one of the better banks in Maharashtra.

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CHAPTER 8 BIBLIOGRAPHY -

 http://www.bankofmaharashtra.in/aboutus.asp accessed on 2018/27/10  http://www.bankofmaharashtra.in/profil.asp accessed on 2018/27/10  http://www.bankofmaharashtra.in/financials.asp accessed on 2018/27/10

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