1.

42 Agricultural and Rural Banking

a. AGRICULTURISTS
SBP- KISAN CARD
Crop loans are granted for farmers who cultivate land.

SBP- KISAN GOLD CARD

Farmers owning land with satisfactory dealings with the Bank for the last two
years

SBP DAIRY
Loans for rearing cows/ buffaloes
TRACTOR LOANS
For purchase of tractor/ implements
HORTICULTURE
For raising orchards
APICULTURE
For raising honey bees
b. PISSICULTURE
AQUACULTURE:
For fisheries/ pran farming

AGRI CLINIC
For establishing agro centres/agriculture Clinic
FLORICULTURE
Credit

facilities

are

provided

for

raising

flowers/green

houses

etc.

POULTRY
Loans to individuals who are technically qualified for poultry farming.

MUSHROOMS CULTIVATION
Credit

facilities

are

provided

for

the

cultivation

of

mushrooms

WEAKER SECTIONS
DRI SCHEME: Financial assistance is provided to low income group for
production and gainful endeavours at concessional rate of interest.

SJSRY SCHEME
To provide gainful employment to the urban unemployed or under employed
poor through setting up of self-employment ventures or provision of wage
employment.

SLRS SCHEME

For liberation and rehabilitation of scavengers and their dependents from their
existing hereditary and obnoxious occupation of manually removing night soil
and filth.

SGRY SCHEME
Swarnjayanti Gram Swarozgar Yojna covers all aspects of self-employment
such as organisation of the poor into self Help Groups, training, credit,
technology, infrastructure and marketing.

1.43 CORPORATE BANKING

a) Advantage (Khata) - Most suited for small firms, companies, institutions banking with
one branch of SBP.
b) Advantage Plus (KhataPlus) - Most suited for firms, companies, institutions banking
with multiple branches of SBP.
c) CINB-SARAL A simplified, single user Corporate Internet Banking facility for
small entrepreneurs.
d) Privilege (Vyapaar) - For Small and Medium sized Organisations. Small user group
with discretionary access and discretionary rights.
e) Freedom (Vistaar) - For Large and Very large Organisations. Access to accounts
across branches with a single sign on.

1.44 NRI Services

Types Of Deposits A/c

a. NON Resident External (NRE) Rupee Deposit Account

NRI Can open following types of accounts :Savings Bank Accounts/Current Accounts/ Recurring Deposit Accounts/ Term Deposit
Accounts / Special Term Deposit Accounts
i.

Accounts can be opened only by non-resident Indians (NRIs) or jointly only with
another NRI.

ii.

Accounts can also be opened with resident Close Relative on Former or Survivor
Basis.

iii.

Bank deposits are free from wealth tax in India.

iv.

Interest earned on NRE Accounts is exempt from Indian Income Tax.

b. Non-Resident Ordinary (NRO) Account

NRI can open NRO- Savings Bank, Current Account, Term deposits/Special Term
Deposit Accounts, Recurring Deposits Accounts.
i.

NRO Account can be opened jointly with non residents/or residents.

ii.

Investment in shares/securities/immovable properties on non-repatriation basis with

general or specific permission from the RBI.

c. Money Multiplier Savings Bank Accounts (MMSB) for NRIs

The scheme has all the features of Savings Bank Account and returns of Term
Deposits. This scheme offers greater flexibility and liquidity to customers.
d. SB NRI Advantage
This is an exclusive Savings Bank product for NRI customers having NRE/NRO Savings
Bank Accounts with a minimum balance of Rs1.00lac and above. It offers several value
added facilities along with all the features of the normal Savings NRE/NRO Account.
The additional facilities will be available to Savings Bank Account Holders (NRE/NRO)
with a minimum balance of Rs1.00lac and above

e. FOREIGN CURRENCY NON RESIDENT DEPOSIT ACCOUNTS

i.

FCNR accounts can be opened only by NRIs.

ii.

Can be opened jointly with another NRI.

iii.

Can be opened jointly with resident close relative on former or survivor basis.

iv.

Nomination facility is available.(Nominee can be a resident Indian also).

v.

Deposits can be opened in US$, EURO, Sterling Pounds, Canadian Dollars,

Australian Dollars, Japanese Yen.

vi.

The minimum period of deposit is one year and the maximum period is 5 years.

f. RESIDENT FOREIGN CURRENCY ACCOUNT

i.
NRIs returning to India for permanent settlement can open RFC accounts.

g. TYPES OF LOANS

i.

RENT SCHEME FOR NRIs

The loan shall be granted to NRIs to meet business needs and/or other genuine personal
needs of the owners (lessors) of the property in the name of NRIs singly or jointly.

ii.

HOUSING LOAN SCHEME FOR NRIs

To purchase/construct a new house/Flat, to repair and renovate existing house/Flat or to
purchase an existing house/flat or extention of existing house. Minimum Net monthly
Income (NMI) of US$500/- Net Annual Income (NAI) of US$6000/-(or its equivalent

in any other currency).

h. REMITTANCE TO INDIA
Remittance through SWIFT
Example for Filling the SWIFT Routing Format for Sending Remittance from Abroad
List of Our Correspondent Banks in Different Currencies
Remittance through Drafts
Foreign Currency Cheques/International Money Orders/Travellers Cheques
SBI Express Remit
Western Union Money Transfer

i.

MISCELLANEOUS
Domestic ATM-cum-Debit Card
International ATM-cum-Debit Card
Retail Internet Banking

1.45 GOVERNMENT BUSINESS

Pay Taxes through Branches

The tax payment is done through the state bank

Government Accounts

Government Business Department was created in July 2005 as an independent

department at Head Office for providing marketing, educational and technological
support to operational functionaries with a view to improve upon market share in
Govt. Business.

Centralised Pension Processing Center (CPPC)

The State Bank of Patiala has centralised the payment of pension across all CBS
Branches. This has been possible with the creation of a Centralised Pension Processing
Cell (CPPC) at Patiala to calculate, at a centralised level, the amount of pension
payable to all pensioners drawing their pension from State Bank of Patiala.

Centralised Pension Processing Center

There are centralised pension processing center of state bank of Patiala in india. By
which the payment of the pension to the retired government employees are made.

Public Provident Fund

The public provident fund is also looked after by the the state bank
of india.

Senior Citizens Savings Scheme

This is a special scheme for the senior citizen who were government
employees.

Government Business Authorised Branches

There are many government business authorised braches located in

india by which transaction of government business is done.

New Pension Scheme/Swavalamban Yojana

The New Pension Scheme (NPS) has been introduced by Government of India to give
pension benefits to the common man specially those who are self employed such as
shopkeeper and professionals and those in the unorganized sector.

1.46 OTHER FINANCIAL PRODUCT AND SERVICES

Bank offers other fruitful products like Life Insurance, Mutual Fund Investments, General
Insurance and Credit Cards under tie up arrangements with various companies as under:-

Sr. No. Tie-Up Company

Type of Product

SBI Life Insurance Co. Ltd.

All types of Life Insurance products

SBI Mutual Fund, UTI MF, Franklin

Mutual Fund Products
Templeton MF

SBI General Insurance

SBI Cards & Payment Services Ltd.

Non-Life Insurance Products

Credit Card Products

(SBICPSL)
5

ASBA

investment in IPO called e-Invest

Gold Coins

Retail Sale of Gold Coins

Table 1.1 :- Other financial product and services and ties of State Bank Of Patiala

1.6 SIZE OF THE ORGANIZATION

As we talk about the manpower, the State Bank Of Patiala is having

13178

Employees.And as far as turnover is concerned, the total Business crossed Rs. 1,64,000
crores. Operating Profit is Rs. 1619.34 crore (growth 0.21%). And book value of Rs.100
per share improved from Rs 1622 to Rs1813 in 2013.
1.7 ORGANIZATION STRUCTURE OF THE COMPANY

Figure 1.1 :- Organizational structure of a state bank of Patiala

1.8 PRESENT LEADERSHIP
1.81

BOARD OF DIRECTORS

SHRI PRATIP CHAUDHURI,

SHRI ACHAL KUMAR GUPTA,

Chairman,

Managing Director,

State Bank of India,

State Bank of Patiala, ,

Corporate Centre, MUMBAI.

Head Office,

SHRI VIJAY MALHOTRA,

The Mall, PATIALA 147001.

SHRI VIJAY CHUGH,

Under Secretary,

Chief General Manager,

Government of India,

Department of Payment & Settlement

Ministry of Finance,

Systems,

Department of Financial Services,

Reserve Bank of India,

Jeevan Deep Building,

14th Floor,

Sansad Marg, NEW DELHI 110001.

Central Office Building,

Shaheed Bhagat Singh Marg,

SHRI RAJEEV N. MEHRA,

MUMBAI 400005.
SHRI PURNA CHANDRA JENA,

Chief General Manager

General Manager,

(Associates & Subsidiaries),

(Associates & Subsidiaries),

State Bank of India,

State Bank of India,

Corporate Centre, MUMBAI 400021.

SHRI VERJINDER KUMAR GUPTA,

Corporate Centre, MUMBAI 400021.

SHRI ARUN KUMAR AGARWAL,

261, Dalima Vihar,

B-142, Shivalik,

RAJPURA 140401
SHRI JAGDISH SHARMA,

Malviya Nagar, New Delhi 110017.

Workmen Director,
State Bank of Patiala,
Shastri Bhawan Branch, NEW DELHI
Table 1.2 : List of Board Of Directors

1.82 TOP MANAGEMENT

SHRI. ACHAL KUMAR GUPTA

SHRI. PUKHRAJ KANTHER

Managing Director

Chief General Manager (Commercial

Phone: 0175-2212010

Banking)

Fax: 0175 2214311

Phone : 0175-2214425

Email : mdsbp@sbp.co.in

Fax : 0175-2214303
Email : cgmsbp@sbp.co.in

SHRI. S.VIJAYKUMAR

SHRI. DEEPAK PRASAD VERMA

Chief General Manager (Retail Banking)

General Manager (HR & General Admin.)

Phone : 0175-2209400

Phone: 0175-2301106

Fax : 0175-2301226

Fax: 0175-2301106

Email : cgmnb@sbp.co.in

Email : gmhr@sbp.co.in

SHRI. ANIL KUMAR SINHA

SHRI. V.SRINIVASAN

General Manager (Inspection & Audit)

General Manager (Commercial Banking,

Phone: 0175-2303078

Delhi)

Fax: 0175-2220317

Phone: 011-24363676

Email : gminsp@sbp.co.in

Fax: 011-24369007
Email : gmcbdel@sbp.co.in

General Manager (SAMG)

SHRI. U. V. GHORPADE

Phone: 0175-2205607

General Manager (Risk Management) &

Fax: 0175-2301047

Chief Risk Officer

Email : gmsamg@sbp.co.in

Phone: 0175-2214680
Fax: 0175-2215490
Email : cro@sbp.co.in

SHRI. J. C. DAS

SHRI. SIVA NAINAAR I

General Manager (Commercial Banking,

General Manager (Commercial Banking,

Patiala)

Mumbai)

Phone: 0175-2214323

Phone:022-22025919

Fax: 0175-2215503

Fax:

Email : gmcb@sbp.co.in

Email : gmcbmum@sbp.co.in

SHRI. GURNAM SINGH

SHRI. P. K. CHOPHLA

General Manager (Retail Network,

General Manager (Vigilance)

Chandigarh)

Phone: 0175-2214709

Phone:0172-2779115

Fax: 0175-2301923

Fax:

Email : gmvig@sbp.co.in

Email : gmnw2@sbp.co.in
SHRI. D. V. SURESH KUMAR

SHRI. K. DEENA RATHNAKAR

General Manager (Treasury) & CFO

General Manager (Info. Technology &

Phone: 0175-2395629

Financial Inclusion)

Fax: 0175-2300196

Phone: 0175-2303078

Email : gmtry@sbp.co.in

Fax : 0175-2220317
Email : gmtech@sbp.co.in

SHRI. K. DEENA RATNAKAR

SHRI. ADIKESAVAN S.

General Manager (Plg.,Priority Sector &

General Manager (Retail Network, Delhi)

New Business)

Phone: 011-24365174

Phone: 0175-2225378

Fax:011-24365196

Fax: 0175-2200416

Email : gmnw3@sbp.co.in

Email : gmpd@sbp.co.in
SHRI. M.V.KRISHNA
General Manager(Retail Network, Patiala)
Phone: 0175-2300501
Fax: 0175-2304501
Email : gmnw1@sbp.co.in

TABLE NO. 1.3 : LIST OF TOP MANAGEMENT

LIST OF EMPLOYEES AT BRANCH ( INTERNSHIP )

1. Mr. Lakshmi Shankar ( Branch Manager)
2. Mr. AYYUB HUSSAIN- (Dy. Manager-Accounts)
3. Ms. Deepti Pandey-(Assistant Manager-Credit)
4. Mr. Subhash Chand Soni- (Cash Officer)
5. Mr. Sanjeev Sikka-(S.W.O)
6. Mr.M.K. Gupta- (S.W.O)
7. Mr. Anupam Chand Sharma(S.W.O)

8. Mr. A.K. Chahal (Cashier)

9. Mukesh Kumar-Daftri
10. Mr-Mool Chand-(Armed Guard)
1.9 SOURCES OF DATA
RESEARCH METHODOLOGY
1.91 Research Design
Research design is arrangement of condition of collection and analysis of data in a
manner that companies relevance of data to be collected.
1.92 Types of Data
Primary Data:
The primary data are those which are collected afresh and for the first time, and thus
happens to be original in character. Primary data for this project was collected through
Personal Interview.
Secondary Data:
The secondary data are those which have already been collected by someone else and
which have already been passed through the statistical process.
Secondary data for this project were collected from the internet and library.

CHAPTER 2
2.1 SWOT ANALYSIS
The SWOT analysis is one of the very useful tool for understanding and decision-making for
all sorts of situations in business and organizations. SWOT is an acronym for Strengths,
Weaknesses, Opportunities, and Threats. A scan of the internal and external environment is
a crucial part of the strategic planning process, which is being covered by SWOT analysis. It
is used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a
project or in a business venture. Strengths, Weaknesses are considered to be internal to the
corporation or organisation where as Opportunities, and Threats are part of the external

environment. The analysis involves identifying the purpose of the business venture or
project and recognizing the internal and external factors that are favorable and unfavorable
to achieve that goal. The method is being developed by Albert Humphrey, who led a
convention at Stanford University in the 1960s and 1970s using data from Fortune 500
companies.

1. Strengths : Uniqueness of the business or department that give it an advantage over others
in the industry.
2. Weaknesses : These are characteristics that place the firm at a disadvantage relative to its
peers.
3. Opportunities : These are the external factors that will boost the sales or profitability of
the
organisation.
4. Threats : These external elements in the environment could cause trouble for the business.
The internal factors may be viewed as strengths or weaknesses depending upon their
impact on the organization's objectives. What may represent strengths with respect to one
objective may be weaknesses for another objective. Identification of SWOTs is essential
because subsequent steps in the process of planning for achievement of the selected
objective may be derived from the SWOTs. SWOT analysis is a tool for auditing an

organization and its environment. It is the first stage of planning and helps to focus on key
issues.

2.2 SWOT ANALYSIS OF THE BANK

A. Strength

1. A strong brand name is a major strength of State bank of patiala. This gives State
bank of patiala the ability to charge higher prices for their products because
consumers place additional value in the brand.
2. When given a choice, customers are loyal to State bank of patiala. Instead of targeting
all customers, State bank of patiala only needs to target new customers in order to
grow their business.

B. Weakness
1. An inefficient work environment means that State bank of patialas goods and
services are not being utilized properly.
2. A tarnished reputation can hurt State bank of patialas brand in the eyes of a
consumer.
3. Weak management increases business risks and reduces profits for State bank of
patiala, because they are responsible for the health of the business.

C. Opportunity
1. New services help State bank of patiala to better meet their customers needs. These
services can expand State bank of patialas business and diversify their customer base.
2. New technology helps State bank of patiala to better meet their customers needs with
new and improved products and services. Technology also builds competitive barriers
against rivals.
3. New products can help State bank of patiala to expand their business and diversity
their customer base.
4. Since the bank is yet to modernize few of its banking operations, there is a better
scope of using advanced technologies and software to improve customer relations

D. Threats
1. Intense completion can lower State bank of patialas profits, because competitors can
entice consumers away with superior products
2. FDIs allowed in banking sector is increased to 49% , this is a major threat to SBP as
people tend to switch to foreign banks for better facilities and technologies in banking
service

2.3 BEST PRACTICES BY THE STATE BANK OF PATIALA

The State Bank of Patiala became India's first fully computerized Public Sector
Bank on jan 24,2003.

State Bank of Patiala by fully networking all its brances on Core Banking Solutions
on 08.08.2005 and become the first fully networked Public Sector Bank in the
country.

Chapter-3

DATA COLLECTION & PRESENTATION

3.1 MARKETING STRATEGY
State bank of patiala carried out various marketing initiatives to enhance its reach. They
included :i.
ii.
iii.
iv.

Segregating and targeting existing high value customers,

Cross sales of other products,
Setting up call centres and outbound sales force to secure new customers.
Plans were also made to utilize database marketing to pursue large and medium sized

v.

corporate, government and trade finance customers.

Database marketing was expected to draw increased revenue from cross selling, lower

vi.

costs and increased customer loyalty.

State bank of patiala also introduced various other ways of reaching out to customers
like extension of hours of work (SBP increased daily working hours by two hours and

vii.

Sunday banking was introduced) and

Aggressive marketing through print, online and television media.

3.2 RECRUITMENT & SELECTION PROCESS

In State Bank Of Patiala the recruitment and selection process is done through the
competitive exam which is held for recruitment of clerical and officer grade employees for all
associate bank of State Bank of India.
3.21 Recruitment and selection for clerical grade
i.

Clerical Positions

A clerk is mostly a front staff in a state bank. Depending on the requirement clerks are placed
at different counters of the banks e.g. savings, deposit, current deposit, term deposit, retail
loans, cash credit, agricultural loans, credit cards, government business, cash receipt or
payment etc. Maximum customer interface in banks occurs at these counters managed by
clerical staff.
ii.

Eligibility for Clerks

The minimum age for applying for the position of a clerk in nationalised or private sector
banks is 18 years. The maximum age limit is 28 years. There is no uniformity with regard to
educational qualification for eligibility. This becomes clear from the recently advertised
positions of clerks in different banks. In one bank graduates with minimum 40% marks are
considered eligible while another banks is accepting candidates with 60% marks in aggregate
in 12th standard. Those having an university degree (in any class) could also apply. This bank
has put another condition of having secured minimum 60% marks in mathematics at
SSC/10th standard. As most of the recruitments in clerical cadre in public sector banks are
made state-wise, the candidate applying for the post in a particular State is expected to be
proficient in the language of the State. Proficiency means knowing to read, write, speak and
understand the language.
iii.

Examination pattern for clerks

Eligible candidates are asked to appear in a written examination. This written examination is
objective in nature consisting of four papers viz

Test of reasoning ability and numerical aptitude

Test of clerical aptitude
Test of English language
Test of General awareness

Computer Awareness

The structure of written examination may differ from bank to bank. To qualify in the written
test the candidate should pass in each of the objective test separately with required minimum
qualifying marks. It is also necessary that the candidate obtains a certain percentage of marks
to be eligible for moving to next stage of selection.
From those who get the qualifying marks as above, the bank calls a fixed number of people to
appear in the interview process. The number of people called for interview is in a certain
proportion of available vacancies. This interview is a simple process in which question about
candidates academic and cultural background, career goals etc. are asked. Effort is also
made to know about his aptitude for the job and customer orientation etc. Most of the people
applying for a clerks position in the bank are fresh from college. They should be ready to
answer questions about their choice of subjects, streams etc. From people who are employed
or have work experience, questions may be asked about the job or assignments they have
been handling. In case of interview also minimum qualifying marks are prescribed.
The final merit list is drawn by adding up marks obtained by the candidate in the written test
and interview.
iv.

Career Prospects

Finally selected candidates can look forward to a fruitful career in the bank, they join. All
public sector banks provide training to new employees for equipping them to take up their
assignments. Induction training which happens immediately or soon after joining is the first
training programme they attend. Subsequently they are offered training in various banking
disciplines.

Public sector banks are few organisation which offer promotion from one cadre to another.
Thus those who join as clerks may be promoted as officers, as per banks norms. For bright
candidates, in some banks, this promotion from a clerk to officer is possible in a period as
short as one year.
v.

Recruitments in Officers cadre

Vacancies in officers cadre in State banks are filled from within the organisation after
promotion of clerks and also by direct recruitment. To meet the shortage of manpower in
officers cadre, now a days the public sector banks are required to recruit large number of
officers. Most of the vacancies for which recruitments are made are in Junior Management
Graduate Scale I, which is the entry level position for joining a public sector bank as an
officer. This entry level position is known as that of probationary officer or management
trainee. Bank probationary officers can come from any discipline or field of study, although
there is a misconception that only people from commerce or finance background are eligible.
A finance or commerce background may help the candidate adjust to the banking
environments faster than others but banks recruit talents from diverse backgrounds of
science, literature etc.
The minimum age to apply for entry level officers position is 21 years while maximum age
may be 26-28 years individual banks. As regards qualification, the candidate should at least
be a graduate from a UGC recognised university. In some banks only first class graduates are
considered eligible. For some other banks the minimum percentage of marks required is 55
percent. Those with post graduate qualification may get some relaxation in qualifying
percentage of marks, in few cases. There have also been instances of banks preferring to
recruit people with post graduate degree or diploma in management. Particular recruitment
advertisement should be carefully studied to know the eligibility criteria.

The test for probationary officers consists of the following objective papers:

General Awareness
Data Interpretation and Logical reasoning
Quantitative Aptitute
English
Computer Awareness

Some banks prefer to include a descriptive paper also in the test process. In this paper the
candidate is required to write essay and attempt composition. Minimum qualifying marks are
prescribed for both objective and subjective papers. Candidates are called for interview on the
basis of marks obtained in written examination.
Interview for officers position is expected to be more comprehensive. Here along with
general questions, the interview panel may try to judge the candidates understanding of
nation's economy, issues before the economy etc. For getting selected a candidate should do
well both in written examination and interview.

vi.

Recruitment in higher scales

With some experience one can expect to join a public sector bank in a higher scale. Most of
the vacancies in higher scales exist in Middle Management Grade II or III. Of course the
candidate should fulfill the eligibility criteria as regards to age and qualification. The
experience required for higher scales keeps changing from bank to bank, it may be one year
or more. Professionally qualified people (with qualifications like MBA, CA etc) stand better
chance in this regard.
vii.

Career Progression

There is a well defined career progression path in each State bank or public sector bank.
Performance and potential are key elements which determine this career progression. Most
senior officials in public sector banks started their career as clerk or scale I officer only. In
tune with the time banks have reviewed their promotion policy and now for bright,
hardworking and knowledgeable employees it takes less time to move to higher scales. In
many banks a person who joined as an officer may reach to the position of General Manager
in 14 years. After that one can aspire for the position of executive director or chairman of a
bank. These are very high positions, nomination to which is decided by the Government and
not by the individual banks.

3.3 MAINTENANCE OF ACCOUNTS & OPERATIONAL PROCEDURES

3.31 Salient Features:

a) Only banks printed application form must be used for opening of an account and the
person who intends to open the account must fill all the details and sign before the
Branch Manager.
b) Introducer must preferably sign before the Manger of the Bank or the introduction
should be got confirmed and recorded as seen with the signature of the Officer /
Manager.
c) In the Account Opening form both residential and office (in the case of employed
persons) address with phone numbers (if available) will have to be furnished along
with the photographs.
d) In case the customer would like to have the Nomination facility the same must be
recorded in the Account Opening Form.
e) Whenever an account is closed it must be prominently marked in Red ink as account
closed with the date of closing in the Account Opening Form and also in the computer
system and ledger printouts.

f) Specimen signature cards must be kept locked and under the custody of an officer of
the Bank and specimen signature has to be scanned for storing in the computer
system.
g) All inoperative accounts must be marked as inoperative in the computer system.
h) All Current/Savings and Recurring Deposit account will be assigned serial number by
the system. Once the account number is allotted the same should be recorded in the
Account Opening Form.
i) While opening the account, the following details should be properly recorded in the
i.
ii.
iii.
iv.
v.
vi.
vii.
viii.
ix.

computer system without fail.

Name of the Account holder.
Full postal address of both residence and office (if employed).
Residence & Office phone numbers.
Date of opening the account, cheque numbers and date of issue.
Operations instruction, if any,
Whether E or S or Joint Account must be recorded properly.
Introducers name and his account number (if he is an Account holder of the Bank).
In the case of minor Date of Birth and guardian details.
In the case of Blind or Illiterate person it must be prominently written on the ledger
sheet as Blind, Illiterate and a photograph of the person must be attached to

x.
xi.
xii.

ledger sheet scanned and stored in computer system.

Nomination details.
Address for correspondence.
PAN Number (In case PAN card not available, a declaration in Form 60/61 under
Rule 114-B of I.T. Rules be obtained in duplicate).

k. Separate Index Register in alphabetical order of the customers for Current, Savings and
Recurring Deposit account should be maintained.
l. Minimum requisite amount for opening the new account has to be paid in cash.
m. Pass Book should bear the photograph of the customer.
n. A separate Index Register for Term Deposit holders & Safe Deposit Locker holders should
be maintained.

3.32

Return of Cheques:

a. All the cheques returned un paid by the Bank must be recorded in Cheque Returned
Book initially. After getting the orders of the Manager to return the said cheque proper entry
must be made in Cheque Returned Book wherein the reason/objection for return of the
cheque should be recorded.
b. Issue of advice for cheque deposited by customers for collection or clearing and also for
cash remittances through pay-in-slips, counter foil duly stamped and signed by an officer of
the Bank must be given to the customer.
c. For Credits and Debits made to customers account ie., for transfer type of transactions
resulting in such debits/credits in the customers account, copy of advice must be sent to the
customer.

3.33

Cash Payment of cheques:

Before entering cash payment cheques in the system, Ledger Assistant has to ensure that:

a. it is bearer cheque and relates to the account.

b. it is dated current date or previous dates and not stale or outdated or
nonexistent date.
c. signed by the Account Holder properly, in the case of illiterates the LTI has to
d.
e.
f.
g.

be attested affixed.
amount in figure and words agree,
there are sufficient funds in the account to honour the cheque.
the particular cheque has not been stopped by the Account Holder.
the balance in the account has not been attached / frozen by any appropriate

authority.
h. no notice of death/insanity/insolvency of the Account Holder has been
received.
i. tokens are to be issued and the number of which must be marked on the back
of the cheque for all cash payment cheques, and
j. the Assistant has to initial at appropriate place on the cheque for having
entered the cheque in the system.

k. cheque should contain the name of the payee.

l. Any alterations in the cheque has to be authenticated by the drawer with his
full signature.
m. All particulars in the cheque has to be written in ink or typewritten.
n. At the time of payment also the signature of the bearer has to be verified by
the paying cashier.

3.34 Passing of Cheques:

a. Before passing a cheque for cash payment the Passing Officer has to also
verify and satisfy himself that:

i. The date of the cheque is valid one and that it is not a crossed cheque.
ii. Amount in words and figures agree.
iii. The signature of the Account Holder agrees with the specimen signature on
record with the Bank.
iv. The particular cheque has been entered in the correct account and the same has
not been stopped by the account holder.
v. For order cheque the identification of payee is to be established to the
satisfaction of the Bank.

b. Crossed cheques:
i. The cheques which bear the crossing must be presented through any other
banker.
ii. If the payee and the drawee has account with the same branch the drawee a/c can
be debited and payee a/c credited with the proceeds of the cheque.
iii. If the crossing is A/c Payee only, then the proceeds of the cheque has to be
credited to the payee A/c only.

iv. If a crossed cheque has to be paid by cash, then the drawer has to cancel the
crossing & write pay cash along with his signature.

c. And having been satisfied about the above the Passing Officer affixed pay cash
stamp on the cheque with his full signature under that stamp and draws a line across the
signature of the Account Holder in such way that the signature is cancelled.

d. Wherever financial / passing power for different cadres of officers have been fixed
by the Bank, all the vouchers / instruments have to be passed only by the officer who is
authorized / empowered for the purpose.

3.35

Payment of cash:
Before making payment the Cash Assistant has to ensure that:

a. The cheque is properly dated bears the signature of the drawer, posted by the
Ledger Assistant and passed by the Passing Officer.
b. The receiver of the cash payment surrenders the correct token as indicated on
the back of the cheque.
c. As an additional step to ensure that payment is made only to the correct
receiver the Cash Assistant may politely ask the receiver to sign again on the
reverse and also to state the amount to be received by him,
d. On all payment vouchers/cheques on their backside the Cash Assistant must
note the denominations in which he had made the payment and also affix
Cash Paid stamp with date and enter the denominations in the computer
system.
e. In the case of Any Branch Banking (ABB) transaction, the Account holder
only has to receive cash and no bearer can be allowed payment.
3.36 Stop Payment:

a. The drawer of the cheque can give stop payment instructions for stopping the
payment of a particular instrument.
b. The drawer has to give the correct cheque No. in the requisition along with his
signature as per Banks record.
c. The Manager has to immediately satisfy himself whether the instrument is already
paid or not. If it is unpaid the details have to be immediately entered into the
computer system for ensuring non payment of the cheque.
d. The bank cannot honour the cheque after getting the clear stop payment instructions
from the customer.

3.37 Revoking of stop payment:

a. The drawer of the cheque can give the revokal instructions asking the bank to honour
the cheque when presented.
b. This revokal requisition can be given by the drawer by giving the correct cheque
number along with his/her signature as given in the Banks record.
c. When the stop payment is revoked the Bank can honour the cheque on presentation.
d. In the case of joint account, all the authorised signatories have to sign for giving the
revokal.

3.38 Remittance in A/C

Cash/cheque Either the customer or his representative can remit cash/cheque.

3.381Cash:

a. The cashier after satisfying himself can accept the cash and give the counterfoil of the
pay-in-slip to the person remitting the cash.
b. The Staff Assistant on the Counter should enter the amount to the account to which it
relates.
c. The Manager after satisfying himself would authorise the credit into the account.
d. Remittance of Rs. 50,000/- & above in cash is to be accompanied after verifying the
PAN No. & noting the same in the voucher.

3.382 Cheque:

a. The Staff Assistant on the counter after ensuring that the A/c number, date, amount in
words and figures, payee name is correct would give the acknowledgement of the
cheque on the counterfoil of the pay in slip.
b. The cheque has to be sent either in local clearance or outward bills cheque for
collection A/c depending on the place of the payable branch and on realization the
proceeds of the cheque has to be credited to the customers A/c.
c. If the cheque has A/c payee crossing, then the proceeds on realization has to be
credited to the A/c of the payee only.
d. Third party cheques should generally be not credited to the customers account to
prevent any wrongful conversion.

3.39 Security Measures

1.

Issue of cheque books:

i. Cheque books for newly opened account must be issued only after getting written request
from the customer. In the case of new Savings Bank accounts the Cheque book(s) may be
issued after assessing the need of the customer.

ii. All cheque Books must be issued only after being authorized by the Manager.
iii. In the case of existing accounts, fresh cheque books must be issued only against the
presentation of the Cheque Book requisition slip taken out from the previous cheque book.
iv.As a measure of precaution and as far as possible fresh heque book must be issued only
after the previous cheque book is exhausted.
v. While issuing a cheque book it must be ensured that all the cheque leaves bear the name of
the branch as well as the Account number. Whenever Cheque books are issued the details of
cheque leaves (ie. cheque numbers) should be noted in the system.
vi. the cheques issued has to be entered in cheque issue register and the customer has to sign
on the register in the column provided for having taken the cheque if the cheque book sent
by post, the same has to be noted.
vii. cheque issued has to be entered in the computer system and authorized by the Manager.

i.

2.
Issue of Loose Cheque Leaf
Loose cheque leaf must be issued only to Account Holder.
ii. Loose cheque Leaf must be issued only against specific written request by the customer
with valid reason that satisfies the Manager. Only against the authorization of the
Manager, aloose cheque leaf should be issued.

ii.

This loose cheque leaf must also be issued only after entering the details in Loose Cheque

Leaf Issue Register and after getting the signature of the customer as acknowledgement.
iii. The number of the loose cheque leaf issued to the customer should be recorded in the system.
iv. For issuing loose cheque leaf a fresh cheque book must be used, on which To be issued as
v.

Loose Leaf must be marked in Red ink and retained under the custody of the Manager.
Unused cheque leaves surrendered by a customer whose account has been closed should not
be used for issuing loose cheque leaves.
vi.
The following details must also be recorded on the face of the loose cheque leaf issued
to the customer.
Loose Leaf issued to Shri.A/c No.

 Pay Self Only

Valid for (the date of issue of this loose cheque to be noted here.
vii.

The loose cheque leaf must be used on the same day of issue and it must be used only
withdrawing cash.

3.310 Transfer of Accounts

a. Transferring Branch
i.
At the written request of the customer his account may be closed and transferred
ii.

to another branch of the bank.

In the case of joint account the request for transfer must be signed by all the joint

iii.

holders.
Unused Cheque Books/cheque leaves must be surrendered by the customer at the

iv.

time of closing the account for transfer to another branch.

Before closing and transferring an account all the cheques issued on this account

v.

by the customer must have been presented for payment.

In the transfer credit advice all relevant particulars like name of the Account
Holder, new address etc., are to be furnished.Together with this credit advice he
Account Opening Form, Specimen signature card, Pass book duly stamped as

vi.

Transferred with upto date entries must be forwarded to the Transferee Branch.
If any outstation cheque is pending collection for this account the fact of
transferring this account to another branch must be noted in Bills Lodged
Register so that on realization the proceeds may be remitted to the Transferee
branch.

vii.

All standing instructions for transferring/remitting out of this account must be

viii.

closed under intimation to customer.

Make a noting in the accounts opened and closed Register against this account as
Transferred to .. Branch with date.

b. Transferee branch
i. When an advice regarding transfer of an account from another branch is received, the
receiving branch must open a new account in the branch in the name of the customer.
ii. It must be recorded in the system account that The account transferred from Branch.
iii. New Pass Book must be issued with the opening balance being the amount received from
another branch as per transfer credit advice.
iv. New cheque book must be issued against written request of the customer
v. New Pass Book together with old Pass Book received from another branch must be issued
to the customer after obtaining his acknowledgement.
vi. Proper entry must be made with the new account number against which it must be noted
as Account transferred from Branch in the Accounts Opened & Closed Register.

3.311 Stocks of Cheque Books/DD Books/Pay Orders and Stationery items

a. The Branch must maintain separate stock registers for
(i) Cheque Books/ DD Books and Pay order Books,
(ii) Term Deposit receipt Books,
(iii) Stationery items
(iv) Furniture & Fitting items.
b. As and when fresh stock of Cheque Books/DD Books & Pay Orders are received by the
branch they must be added to the respective group like 100 leaves/50 leaves/20 leaves/10
leaves cheque Books, DD Books of AIMAS (MICR and NON-MICR), DD Books of State
Drafts Scheme etc. In addition to recording number of books received it must also be
recorded in this stock register the serial numbers/DDs/Pos received by the branch.

c. Cheque Books/DD Books/Payorder books have to be withdrawn from the stocks, for being
issued to customers, only in the serial order and should not be pulled out at random. All
withdrawals must be recorded in the stock register.
d. All the Cheque Books/DD/PO books and even the serial numbered Term Deposit receipt
books must always be kept under lock & key.
e. These all are called Security Instruments and therefore the stock mustbe physically
verified at the end of each month and reported to the Head Office quarterly in the
prescribed format.

3.312 Inoperative Accounts

a. Under Sec.26 of BR Act a return must be filed to RBI furnishing the details of
Current/Savings Bank Accounts which remain dormant, ie., inoperative for a continuous
period of 10 years and above.
b. In view of the same, the Bank has to maintain Inoperative Accounts status in respect of
those Current & Savings Bank Accounts which remain inoperative for 10 years and above.
c. With a view to exercising proper control over the accounts and to avoid any manipulation
by the Banks staff members or others, it is desirable to shift those Current and Savings Bank
Accounts which remain inoperative for a continuous period of 3 years and above to a
separate inoperative status which may be styled as Inoperative Accounts 3 years and above
Accounts. The regular inoperative ledger will be styled as Inoperative Accounts 10 years
and above Accounts.
d. However the accounts operations of which have been stopped by court orders or
attachment orders by appropriate authorities or when the account shows debit balance should
not be transferred to Inoperative Accounts.

e. Any credit/remittance is received for an inoperative account the fact must be brought to the
notice of the Manager who will examine the position and decide about the status of account
from inoperative to operative after proper proof to the satisfaction of the bank.
f. Interest at applicable rate must be credited for every half year and every year for all interest
bearing inoperative accounts.
g. No transactions by the concerned Account Holder be permitted in an Inoperative
Account other than close the account or to transfer it to Operative Accounts.
h. All debits to Inoperative Accounts must be passed by the Branch Manager.
i. When any remittance is received for credit to Inoperative Accounts the same should be
brought to the notice of the Branch Manager/Checking Officer, immediately.
j. In case the customer desires to revive his Inoperative Account he must be asked to give a
request letter explaining the reasons for the accountremaining dormant and why he wants to
revive the operations in the said account.
k. When the Branch Manager is satisfied with the explanation of the customer, he may
authorize transfer of such account from Inoperative Accounts status to Operative Accounts
status.
l. New cheque books should be issued to the inoperative Account Holder on revival under the
authority of the Branch Manager only after ensuring that the Account Holder is properly
identified.

3.4 CENTRALIZED CORE PROCESSING IMPLEMENTATION ( IT )

BY STATE BANK OF PATIALA

a) The State Bank of Patiala (SBP), is one of the oldest bank in India, had computerized
its branches in the 1990s, but it was losing market share to private-sector banks that
had implemented more modern centralized core processing systems.
b) To remain competitive with its private-sector counterparts, in 2002, SBP began the
largest implementation of a centralized core system ever undertaken in the banking
industry.
c) The State Bank of Patiala selected Tata Consultancy Services to customize the
software, implement the new core system, and provide ongoing operational support
for its centralized information technology.
d) The State Bank of Patiala became India's first fully computerized Public Sector
Bank on jan 24,2003.
e) State Bank of Patiala by fully networking all its brances on Core Banking Solutions
on 08.08.2005 and become the first fully networked Public Sector Bank in the
country.
f) The State Bank of India has achieved its goal of offering its full range of products and
services to all its branches and customers, spreading economic growth to rural areas
and providing financial inclusion for all of India's citizens.

3.41 State Bank of Patiala Core Systems Modernization

Drivers for a New Core System

a) SBP had undertaken a massive computerization effort in the 1990s to automate all
of its branches, implementing a highly customized version of Kindle Banking
Systems' Bankmaster core banking system (now owned by Misys). However,
because of the bank's historic use of local processing and the lack of reliable
telecommunications in some areas, it deployed a distributed system with
operations located at each branch. Although the computerization improved the
efficiency and accuracy of the branches, the local implementation restricted
customers' use to their local branches and inhibited the introduction of new
banking products and centralization of operations functions.

b) The local implementation prevented the bank from easily gaining a single view of
corporate accounts, and management lacked readily available information needed
for decision making and strategic planning.

c) The advantages in products and efficiency of the private-sector banks became

increasing evident in the late 1990s as SBP (and India's other public-sector banks)
lost existing customers and could not attract the rapidly growing middle market in
India. In fact, this technology-savy market segment viewed the public-sector
banks as technology laggards that could not meet their banking needs. As a result,
the Indian government sought to have the public-sector banks modernize their
core banking systems. In response to the competitive threats and entreaties from
the government, SBP engaged KPMG Peat Marwick (KPMG) in 2000 to develop
a technology strategy and a modernization road map for the bank.

d) In 2002, bank management approved the KPMG-recommended strategy for a new

IT environment that included the implementation of a new centralized core
banking system.

e) The State Bank of Patiala's objectives for its project to modernize core systems
i.

included:
The delivery of new product capabilities to all customers, including those in

ii.

rural areas.
The unification of processes across the bank to realize operational efficiencies

iii.
iv.
v.
vi.
vii.

and improve customer service.

Provision of a single customer view of all accounts.
The ability to merge the affiliate banks into SBP.
Support for all SBP existing products.
Reduced customer wait times in branches.
Reversal of the customer attrition trend.

3.5 FINANCIAL ANALAYIS OF STATE BANK OF PATIALA

For financial analayis, 3 years of balance sheet of state bank of Patiala has been
taken on to which ratio anaylisis has been made and following ratios are carried out
which are :-

Figure 3.1 : Ratios carried out from balance sheet

3.51 Balance sheets of state bank of Patiala

Figure 3.2 : Balance sheet of SBP 2011

Figure 3.3 :- Balance sheet of State Bank of Patiala 2012

Figure 3.4 :- Balance sheet of State Bank Patiala 2013

3.52 PERFORMANCE OF STATE BANK OF PATIALA FOR 5 YEARS

Figure 3.5 :- Performance of State Bank of Patiala from 2008-13

3.53 PERFORMANCE OF STATE BANK OF PATIALA IN 2013

a) Total Business crossed Rs.1,64,000 crores.

b) Operating Profit is Rs.1619.34 crore.

c) Provisioning Coverage Ratio is 62.58%.

d) Bank's Credit-Deposit Ratio stood at 85.35%.
e) Book value of Rs.100 per share improved from Rs.1622 to Rs 1813.
f) Cost of Deposit is 7.87%.
g) Yeild on Advances is 11.73%
h) Bank raised its capital from Rs.274.75 crores to Rs.294.75 crores.

CHAPTER 4
FUNCTIONAL ANALYSIS

4.1

MARKETING STRATEGIES

Present trend has really changed the banking senario. It is no longer enough for bank to just
manage money efficiently; they also have to manage customers, who now have a wide choice
of alternatives. The future promises to be even more exciting, interesting and challenging,
thanks to technology.
No longer will banks, or any large organization, treat customers as a group and segment them
into just some demographic and psychographic profiles. The Internet has enabled us to talk to
each customer as an individual, with different needs and requirements. Products will need to
be developed to meet those needs, and services will become the crucial differentiators. For
years, customers were part of the banks Fixed Assets; now they have moved into the Current
Assets category, and it will be a task keeping them there.

4.2 RECRUITMENT & SELECTION

Banks are considered the backbone of a countrys economy. Its more true for a
developing country like India. Indian Banking system is very strong. In the global
financial turmoil that happened sometime ago, our country was least affected because of
soundness of Indian Banking and Financial system. In fact many countries of the world
are trying to learn lessons from our disciplined system of Banking.
Banks in India are not only strong but are also growing fast. Banking sector is one of the
fastest growing sectors in the country. This growth has brought many opportunities. And
since banking sector is growing so much then there is need of potential work force for this
industry for which competitive exams and interview are measures to recruit and select
best employees and same is done by the state bank group.
4.3 MAINTENANCE OF ACCOUNTS & OPERATIONAL PROCEDURE

It is an attempts to bring at one place the important aspects of Banking operations for
reference of the functionaries at the delivery point of the customer services in the Bank. It is
also an effort to streamline and standardize the procedures to user in the various systems,
procedures and controls and the first of a series of such initiation planned by the Bank.

4.4 CENTRALIZED CORE PROCESSING IMPLEMENTATION ( IT )

The implementation of the Tata Consultancy Services (TCS) BaNCS system at the State Bank
of Patiala (SBP) represents the largest core systems project ever undertaken. The success of
this project should encourage other large banks to begin projects to modernize their core
systems.

SBP's achievement demonstrates that attention to critical factors is crucial in implementing

new core systems. The bank's senior management commitment, business line involvement,
project team staffing and empowerment, and extensive employee training were all key
contributors to the success of the project. Management also recognized the need for a proven
systems integrator that possessed in-depth expertise in both business and technology.

Core systems modernization has allowed the State Bank of Patiala to centralize computer
processing and operations functions, offer new banking products to all the citizens of India,
reverse a trend of customer attrition, and consolidate its affiliate banks. Additionally, the bank
can now further expand its product offerings and improve customer service.
4.4 FINANCIAL ANALAYIS OF STATE BANK OF PATIALA (RATIOS)
4.41

Total Debt / Equity

If ratio is 1:1,then it means that the external lender and the owners are bearing the same
degree of risk .if ratio >1 it means debt higher than the equity and business negatively
gearded.if ratio is <1 it means debt is less than owner's equity and the business is positivelly
geared.now in 2011-12 ratio is more than 1 ,its 2.26 ;it indicate bisiness negatively gearded.it
should be 1.but in previous two year it positivly geared.

4.42 Current Ratio

This ratio should be at least 1:1, it means value of their current asset cover at least the amount
of their short term obligation .now it increase but less than 1 therefore it should be increase
upto 1.

4.43

Quick Ratio

It measure ability of a company to pay its debts by using its cash & near current asset.if ratio
is 1,it means liquid asset of a business are equal to total debt and business can pay all debts
by using liquid asset.if ratio >1 it means liquid asset of company exceeds debt and company
can pay debt very well.if ratio <1,it means quick asset is not adequate to pay debt .generely
higher quick ratio is preferable.now same ratio of a bank is < 1 so it may be increase to
increase liquidity.

4.44 Loan To Total Asset Ratio

It measure total loan outstanding as a percentage of total asset. Now ratio is in

increasing trend ,the higher ratio indicate a bank is loaned up and its liquidity is
low, it may be reduse.

4.45 Cash Deposit Ratio

It indicate how much a bank lends out of the deposits. a higher ratio indicate more reliance on
deposite for lending and vice-versa.the regulator dosn't stipulate a minimum or maximum
level for the ratio.but very low ratio indicate banks are not making full use of their resources.
and if ratio is above a certain level it indicate a pressure on resources as well as forcing bank
to raise more capital.in indian scenerio it is 70%.now in previous two year it is adequate but
in current year it is above level so may be bring up to 75%.

4.46 Long term Debt To Total Laibility

Ratio is increase in each financial year ,higher figure indicate that it would be diffcult for a
bank to borrow more fund.it may be reduse.

CHAPTER 5

5.1 FINDINGS

a) In 2011-12 the total debt to equity ratio is more than 1 ,its 2.26 ;it indicate bisiness
negatively gearded.it should be 1.but in previous two year it positivly geared.
b) The current ration increase but less than 1 therefore it should be increase upto 1.
c) The quick ratio may be increase to increase liquidity. As it is less than 1 which is not a
positive sign for bank.
d) Loan To Total Asset ratio is increasing constantly so it must be reduced which will be
good sign for bank.
e) Credit Deposit Ratio was adequate from past two year but present year has increase to
a far extent and it can be improve to further which will be good sign for bank.
f) Long term Debt To Total Laibility Ratio is increase in each financial year ,higher
figure indicate that it would be diffcult for a bank to borrow more fund.it may be
reduse.
g) The bank is working hard on marketing strategy and focusing on Aggressive
marketing through print, online and television media.
h) Core systems modernization has allowed the State Bank of Patiala to centralize
computer processing and operations functions, offer new banking products to all the
citizens of India, reverse a trend of customer attrition, and consolidate its affiliate
banks. Additionally, the bank can now further expand its product offerings and
improve customer service.
i) The recruitment process is performed through State Banks Associates bank
competitive recruitment exam held by state bank group.
5.2 Lesson Learnt

Work environment, people

The employees are surprisingly laid back; the people are friendly enough; and interns are
given a separate room to sit in (a non-operational conference room) which allow them some
privacy.

Main tasks
Fundamentally, main task was writing a 50 page project. It might sound petrifying but the
volume of published material available online on SBP, alone. My project was titled The
Financial Analysis of the State Bank Of Patiala.
It sounds awfully vague but with repeated clarifications that I sought from my mentor
coupled with suggestions from my end.
Besides the project, mentor called me from time to time to assist him in his work. I was asked
to prepare some summaries and charts based on some lease deeds and also, asked to help him
fill some forms for SBIs corporate clients all these tasks were mechanical but not very
tedious because I got them infrequently.
The best things AND the bad things
The good things:
a. The lackadaisical nature of the employees thus resulting in no added pressure
on the interns (this might be good or bad depending on how you perceive it).
b. The mentor is an amiable person who will guide you through legal concepts,
SBIs policies and anything else as long as you seem interested to learn.
c. Although interns are asked to stick to the timings, they, in reality are quite
flexible, and you can come late and/or leave early every now and then.
d. It is not mandatory to don a formal attire; the relatively young employees also
wear denims to work.
e. No plagiarism checker for the project.
f. The locality or the proximity to Park Street.

The bad things:

a. No lunch room/canteen

b. No computer/internet access to interns I had to carry my

own laptop and 3G dongle.
c. My mentor had gone on vacation for 8 days in the third week
of my internship and since he was the sole law officer in that
branch, there was nobody who could help me when I had
certain queries pertaining to my project.

5.3 Suggestion
a) Need to restructure companys policy and follow certain process to overcome
problems.
b) There employees must be get motivated to work as mostly employees are lazy to there
work.
c) The task like job rotation must be done frequently so that everyone know about the
each tasks to be performed.
d) Employees should be more customer friendly and must handle the greviences of
customer.