To Determine the Effectiveness of Core Banking On Cash Flow                             EXECUTIVE SUMMARY            The I...
To Determine the Effectiveness of Core Banking On Cash FlowNEED FOR THE STUDYSince the research is to determine the effect...
To Determine the Effectiveness of Core Banking On Cash FlowFINDINGS           •   Employees of the bank should be given pr...
To Determine the Effectiveness of Core Banking On Cash Flow                  INTRODUCTION TO THE TOPIC:The title of the pr...
To Determine the Effectiveness of Core Banking On Cash Flowetc. It allows the user (customers) to operate accounts from an...
To Determine the Effectiveness of Core Banking On Cash Flow                           ORGANIZATION PROFILE  CORPORATION BA...
To Determine the Effectiveness of Core Banking On Cash Flow                                     BRIEF HISTORYEstablished i...
To Determine the Effectiveness of Core Banking On Cash FlowCorporation Bank (Profile)    Metro 251 Branches.    Personal...
To Determine the Effectiveness of Core Banking On Cash Flow   The Bank has been following the guidelines for reservation ...
To Determine the Effectiveness of Core Banking On Cash FlowCUSTOMER SERVICE AND TECHNOLOGY   •   Clientele acquisition is ...
To Determine the Effectiveness of Core Banking On Cash FlowBio-Metric ATMsThe Bank has installed 7 Bio-metric ATMs to cate...
To Determine the Effectiveness of Core Banking On Cash FlowThe Corporation Bank Self-Employment Training Institute [COBSET...
To Determine the Effectiveness of Core Banking On Cash FlowCORP BANK SECURITIES LIMITEDThe wholly owned subsidiary of the ...
To Determine the Effectiveness of Core Banking On Cash Flowof Rs.4.02 crore [before taxation] and Rs.2.52 crore [after tax...
To Determine the Effectiveness of Core Banking On Cash FlowAWARDS WON   •   National Award for Assistance to Exporters fro...
To Determine the Effectiveness of Core Banking On Cash FlowMAJOR RECOGNITIONS   •   One of the Best 200 companies world ov...
To Determine the Effectiveness of Core Banking On Cash Flow                              ORGANIZATION CHART               ...
To Determine the Effectiveness of Core Banking On Cash Flow                                BOARD OF DIRECTORS             ...
To Determine the Effectiveness of Core Banking On Cash FlowThe Board of DirectorsThe Board is constituted in accordance wi...
To Determine the Effectiveness of Core Banking On Cash FlowBank. BABASAB PATIL                                            ...
To Determine the Effectiveness of Core Banking On Cash Flow BABASAB PATIL                                                21
To Determine the Effectiveness of Core Banking On Cash Flow BABASAB PATIL                                                22
To Determine the Effectiveness of Core Banking On Cash Flow BABASAB PATIL                                                23
To Determine the Effectiveness of Core Banking On Cash Flow BABASAB PATIL                                                24
To Determine the Effectiveness of Core Banking On Cash FlowManagement Committee:The Management Committee is constituted as...
To Determine the Effectiveness of Core Banking On Cash FlowIntegrated Risk Management SystemRisk Management is an integral...
To Determine the Effectiveness of Core Banking On Cash FlowCommittee to monitor large value frauds:With a view to provide ...
To Determine the Effectiveness of Core Banking On Cash Flow                           WHAT IS CORE BANKING?  Core Banking...
To Determine the Effectiveness of Core Banking On Cash Flow  The technologies have cut down time, working simultaneously ...
To Determine the Effectiveness of Core Banking On Cash Flow BABASAB PATIL                                                30
To Determine the Effectiveness of Core Banking On Cash FlowFEATURES      Although decentralized automation at the micro o...
To Determine the Effectiveness of Core Banking On Cash Flow       •       Facilitates centralized auditing of branches    ...
To Determine the Effectiveness of Core Banking On Cash Flow                  This entails that a lot of pre-core activiti...
To Determine the Effectiveness of Core Banking On Cash Flow            The branches shall submit a confirmation to this e...
To Determine the Effectiveness of Core Banking On Cash Flowshall be forwarded to the Core Centre, Bangalore for verificati...
To Determine the Effectiveness of Core Banking On Cash FlowSTANDARDIZATION OF GL/SUB-GL/BREAKUP-GL             As the ent...
To Determine the Effectiveness of Core Banking On Cash Flow       •   Country Master       •   State Code Master       •  ...
To Determine the Effectiveness of Core Banking On Cash Flow            Wherever unwanted break-up GLs exist and if there ...
To Determine the Effectiveness of Core Banking On Cash FlowBRANCH SPECIFIC PARAMETERS  As mentioned earlier, standardized...
To Determine the Effectiveness of Core Banking On Cash Flow     •      Other charges for OD/CC accounts while calculating ...
To Determine the Effectiveness of Core Banking On Cash Flow     given in upper case only, (E.g. E02336). Please note that ...
To Determine the Effectiveness of Core Banking On Cash Flow         copy of the letter to the branch duly signed, as a con...
To Determine the Effectiveness of Core Banking On Cash Flow     This is required since in the new software, procedure for ...
To Determine the Effectiveness of Core Banking On Cash Flow    The data from the beginning of the previous financial year...
To Determine the Effectiveness of Core Banking On Cash Flow    User ID of the Branch Staff       As soon as the officials...
To Determine the Effectiveness of Core Banking On Cash Flow               effect that the Branch has successfully converte...
To Determine the Effectiveness of Core Banking On Cash FlowOPERATIONSMeasuring the cash inflows and outflows caused by cor...
To Determine the Effectiveness of Core Banking On Cash FlowFINANCINGChanges in debt, loans or dividends are accounted for ...
To Determine the Effectiveness of Core Banking On Cash Flow    Direct contact was made with the respondents through rando...
To Determine the Effectiveness of Core Banking On Cash FlowOBJECTIVES OF THE STUDY   •    The main objective of the study ...
To Determine the Effectiveness of Core Banking On Cash Flow    •    From the large number of account holder’s of the bank,...
To Determine the Effectiveness of Core Banking On Cash Flow   •   Second measuring tool is the result of the analysis of c...
To Determine the Effectiveness of Core Banking On Cash Flow            PARTICULARS                                        ...
To Determine the Effectiveness of Core Banking On Cash Flow2. SATISFACTION LEVEL.                         PARTICULARS     ...
To Determine the Effectiveness of Core Banking On Cash Flowsatisfaction is 60% and 40% respectively. It states that most o...
To Determine the Effectiveness of Core Banking On Cash FlowThe Objective of the question is to understand whether the cust...
To Determine the Effectiveness of Core Banking On Cash FlowThe Objective of the question was to know the effectiveness of ...
To Determine the Effectiveness of Core Banking On Cash FlowThe Objective of the question was to know whether the concept o...
To Determine the Effectiveness of Core Banking On Cash Flow                                    20                         ...
To Determine the Effectiveness of Core Banking On Cash Flow                   120                   100                   ...
To Determine the Effectiveness of Core Banking On Cash Flow                 80                 70                 60      ...
To Determine the Effectiveness of Core Banking On Cash Flow                       PARTICULARS                 FREQUENCY   ...
To Determine the Effectiveness of Core Banking On Cash Flow  10. ANALYSIS OF PROBLEM.               PARTICULARS           ...
Effectiveness of core banking @ corporation bank project report
Effectiveness of core banking @ corporation bank project report
Effectiveness of core banking @ corporation bank project report
Effectiveness of core banking @ corporation bank project report
Effectiveness of core banking @ corporation bank project report
Effectiveness of core banking @ corporation bank project report
Effectiveness of core banking @ corporation bank project report
Effectiveness of core banking @ corporation bank project report
Effectiveness of core banking @ corporation bank project report
Effectiveness of core banking @ corporation bank project report
Effectiveness of core banking @ corporation bank project report
Effectiveness of core banking @ corporation bank project report
Effectiveness of core banking @ corporation bank project report
Effectiveness of core banking @ corporation bank project report
Effectiveness of core banking @ corporation bank project report
Effectiveness of core banking @ corporation bank project report
Effectiveness of core banking @ corporation bank project report
Effectiveness of core banking @ corporation bank project report
Effectiveness of core banking @ corporation bank project report
Effectiveness of core banking @ corporation bank project report
Effectiveness of core banking @ corporation bank project report
Effectiveness of core banking @ corporation bank project report
Effectiveness of core banking @ corporation bank project report
Effectiveness of core banking @ corporation bank project report
Effectiveness of core banking @ corporation bank project report
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Effectiveness of core banking @ corporation bank project report

  1. 1. To Determine the Effectiveness of Core Banking On Cash Flow EXECUTIVE SUMMARY The Indian economic is growing. There are various factors contributing for thedevelopment of economy. One of the industries which have revolutnalise the economy isbanking. Change in the IT & faster growth has changed the banking operations to a greatextent. Banking operations have led to a great development of economy & meetingcustomer’s needs. Among various sectors that bank is involved, Core Banking is one area thathas changed gradually in meeting dynamic needs of customers. COMPANY PROFILE: Corporation bank was founded in the year 1906 in Udupi by the founder Mr. khan abdul. Its headquarter is at Mangalore, the chairman of the organization is Mr.sambmurthy as a key person to the organization. This industry holds banking services and having different banking products its present revenue is 110722 crores and net income for the present year is 2143.09 crores respectively.TITLE OF THE PROJECT“To Determine the Effectiveness of Core Banking On Cash Flow” of corporation bank atRNR BRANCH.BACKGROUND OF PROJECT TOPIC Since corporation bank at RNR BRANCH has introduced the concept of core banking recently. The Management, in this survey wants to find out the growth percentage of cash flow by introduction of core banking solutions & also to know the impact of core banking on employees & customers of corporation Bank. BABASAB PATIL 1
  2. 2. To Determine the Effectiveness of Core Banking On Cash FlowNEED FOR THE STUDYSince the research is to determine the effectiveness of core banking solutionsOn cash flow statements of corporation bank at RNR BRANCH. Therefore the need for thestudy is limited to corporation bank at RNR BRANCH. OBJECTIVES OF THE STUDY • The main objective of the study is to determine the effectiveness of core banking on cash flow. • To know the impact of core banking on employees & customers of corporation Bank. • To analyze the core banking ActivitiesLIMITATIONS1) A sample of 100 customers & 10 employees of the bank were chosen for the purpose ofstudy.2) The study was restricted to 4 months. 3) There were some difficulties when asked for personal details like cell numbers were asked.METHODOLOGYData Collection Method To fulfill the objectives of my study, I have taken both into considerations viz primary& secondary data.Primary Data: • Primary data was collected through making survey, which is systematic collecting of information directly from the respondents i.e. through Questionnaires. Secondary Data: • Secondary data was collected through Organizational records. BABASAB PATIL 2
  3. 3. To Determine the Effectiveness of Core Banking On Cash FlowFINDINGS • Employees of the bank should be given proper training with respect to core banking. • Customers should be educated with respect to all the benefits available with the core banking. • The concept of core banking should be speeded up so that it saves the time of employees & customers.SUGGESTIONSThe project analysis has helped in knowing the satisfaction level of the Employees based onthe analysis it was found that majority of the employees are satisfied, the satisfaction levelcould further be increased if the employees are given proper training with respect to corebanking.CONCLUSIONThe study was conducted to understand the effectiveness of core banking cash flow ofcorporation bank RNR BRANCH. To serve the state objective of the survey, the response hasbeen collected from 10 employees & 100 customers of the bank & also an analysis was beingmade on cash flow statement of corporation bank for a period of 2 years, which helped inknowing the growth percentage on cash flow after the introduction of core banking, from theanalysis it was found that there has been an 43% increase on cash flow as compared toprevious years.RECOMMENDATIONSAll the details with respect to core banking should be displayed at the Counter hall so that thecustomers come to know the procedure instead of wasting their time. BABASAB PATIL 3
  4. 4. To Determine the Effectiveness of Core Banking On Cash Flow INTRODUCTION TO THE TOPIC:The title of the project report is “To Determine the Effectiveness of Core Banking OnCash Flow” of corporation bank at RNR BRANCH. Core Banking is normally defined as thebusiness conducted by a banking institution with its retail and small business customers.Many banks treat the retail customers as their core banking customers, and have a separateline of business to manage small businesses. Larger businesses are managed via theCorporate Banking division of the institution. Core banking basically is depositing andlending of money. Normal core banking functions will include deposit accounts, loans,mortgages and payments. Banks make these services available across multiple channels likeATMs, Internet banking, and branches. Core Banking Solutions is new jargon frequentlyused in banking circles of India. The advancement in technology especially internet andinformation technology has lead to new way of doing business in banking. The technologieshave cut down time, working simultaneously on different issues and increased efficiency. Theplatform where communication technology and information technology are merged to suitcore needs of banking is known as Core Banking Solutions. Here computer software isdeveloped to perform core operations of banking like recording of transactions, passbookmaintenance, and interest calculations on loans and deposits, customer records, balance ofpayments and withdrawal are done. This software is installed at different branches of bankand then interconnected by means of communication lines like telephones, satellite, internet BABASAB PATIL 4
  5. 5. To Determine the Effectiveness of Core Banking On Cash Flowetc. It allows the user (customers) to operate accounts from any branch if it has installed corebanking solutions. This new platform has changed the way banks are working. Now manyadvanced features like regulatory requirements and other specialized services like share(stock) trading are being provided.As the concept is new its necessary to know theeffectiveness of core banking solutions. As a project handler, we are interested to understandhow the concept works. Core banking is said to be effective, if it is feasible from the viewpoint of customers and bankers as well. Today in the present scenario, every banking concernfollows the system concepts for its smoothing operation but at the same time the quality ofsystem operations is equally important. It should be helpful and fit from both the angles. Tomeasure the effectiveness of core banking solutions the questionnaire was drawn whichcontains some question to solicit the information. Everything has been taken into account soas to conclude with the final results.NEED FOR THE STUDYSince the research is to determine the effectiveness of core banking solutions on cash flowstatements of corporation bank at RNR BRANCH. Therefore the need for the study is limitedto corporation bank at RNR BRANCH. • To know the impact of core banking on employees & customers of corporation Bank. • To analyze the core banking Activities • Since corporation bank at RNR BRANCH has introduced the concept of core banking recently. The Management, in this survey wants to find out the growth percentage of cash flow by introduction of core banking solutions & also to know the impact of core banking on employees & customers of corporation Bank. BABASAB PATIL 5
  6. 6. To Determine the Effectiveness of Core Banking On Cash Flow ORGANIZATION PROFILE CORPORATION BANK Type Public (BSE, NSE:CORPBANK) Founded Udipi, 1906 Corporation Bank, CORPORATE OFFICE , Headquarters Mangaladevi Temple Road Pandeshwar Mangalore 575 001 India Key people Chairman B. Sambamurthy Industry Banking Products Loans, Credit Cards, Savings, Investment vehicles, etc. Revenue Rs 1107.22crore (2008-09) Net income Rs 2,143.09 crore (2008-09) Website http://www.corpbank.com/ : BABASAB PATIL 6
  7. 7. To Determine the Effectiveness of Core Banking On Cash Flow BRIEF HISTORYEstablished in the year 1906, Corporation Bank is an organization based on the traditionalIndian values of service to the community. Corp Bank is regarded as one of the well-runbanks in the comity of Public Sector Banks in the country. The Bank has a unique history of100 years of successful Banking and has stood the test of time by growing steadily, offeringvast, varied and versatile services with a personal touch. Today, its good customer service,pre-eminent track record in House Keeping, adherence to Prudential Accounting norms,consistent profitability and adoption of modern technology for betterment of customer servicehave earned the Bank a place of pride in the Banking Community. The Bank has been richlyendowed with a relatively young, dynamic and efficient manpower, which is the key factor ofthe Bank’s success. Excellence in performance and uniqueness in customer service form thecentral core of the Bank’s organizational culture. The growing confidence of its clientele iswell reflected in the Bank’s performance in all critical areas of its Operations all through theyear.The Bank is a Public Sector Unit with 57.17% of Share Capital held by the Government ofIndia. The Bank came out with its Initial Public Offer (IPO) in October 1997. The Bank’sNet Worth stood at Rs. 3,374.89 core as on 31.03.2008. BABASAB PATIL 7
  8. 8. To Determine the Effectiveness of Core Banking On Cash FlowCorporation Bank (Profile)  Metro 251 Branches.  Personal Banking Branch 28.  Urban & Port Town Branches 230.  CAPS Branches 10.  Industrial Finance Branch 6.  Semi-Urban 181 Branches.  SSI Branches 4.  Rural Branches 173 .  Asset Recovery Branches 5.  Housing Finance Branches 4.  Overseas Branches 2.  Commercial Banking 2.  NRI Branches 1.  Service Branches 11.  Commercial & Personal Banking 66.  Foreign Exchange Service Br. 1.  Fast Collection Service 5*.BRANCH NETWORKDuring the financial year 2005-06, 58 branches were opened, thereby taking the number ofbranches to 835 as on 31.03.2008, spread over 23 states and 2 union territories. Out of theabove, the numbers of specialized branches are 145.The number of Extension Counters as on31.03.2008 stood at 53.  Business growth and branch network expansion Necessitated fresh recruitment to the extent of 966 employees during the year. The total staff strength stood at 12465 on 31 st March, 2009 compared to 12011 in the previous year. 21.2 The staff productivity in the Bank increased from Rs.839.19 lakhs as on 31.03.2008 to Rs.1048.86 lakhs as on 31.03.2009, recording a growth of 24.98%. Net Port per employee increased from Rs.4.79 lakhs to Rs.7.64 lakhs during the year. BABASAB PATIL 8
  9. 9. To Determine the Effectiveness of Core Banking On Cash Flow  The Bank has been following the guidelines for reservation in employment to speci.ed categories. During the year, 82 employees belonging to Scheduled Caste/Scheduled Tribe category were promoted to the next higher cadre. The representation of Scheduled Caste/Scheduled Tribe employees in the total staff strength was 3166 as on 31.03.2009, constituting 25.40% of the total employees.  The Bank also has a fair representation of other reserved categories. As on 31st March, 2009, 1401 Other Backward Communities, 219 Physically Handicapped and 629 Ex- servicemen were on the rolls of the Bank.ADVERTISING AND PUBLICITYThe Bank continued to communicate messages on products, services, interest rates and theperformance of the Bank to the customers, shareholders and the general public through massmedia. In order to bring more customers into its fold, the Bank launched various promotionalcampaigns during the year.During the year, concerted efforts were made for brand building and the Bank continued tocommunicate messages on its products, services, interest rates and the performance to thecustomers, shareholders and the general public through advertisements and outdoor publicityunits.MARKETING INSURANCE PRODUCTSUnder life insurance, the Bank has mobilized first premium business aggregating to Rs.51.04Core as against the target of Rs. 40.84 Crore in the previous year. Bank could mobilizepremium under General Insurance aggregating Rs.14.01 Crore. Under Mutual Fund Business,the bank has mobilized a fund business of Rs. 55 Crore as against the target of Rs. 40 Crorefixed for just concluded fiscal. As at the end of March, 2008 total number of accountsoutstanding under Corp Jeevan Raksha Scheme and Corp Jeevan Griha Raksha Scheme havereached a level of 36000 and 3300. BABASAB PATIL 9
  10. 10. To Determine the Effectiveness of Core Banking On Cash FlowCUSTOMER SERVICE AND TECHNOLOGY • Clientele acquisition is thrust area for marketing network put in place in the Bank. Pay Roll Savings Bank accounts with attractive features are offered for this purpose. Similarly, campaigns are held for acquisition of new customers under Current, Savings and Retail Term Deposits. Bank has added more than 3.30 lakhs new customers during the financial year taking the overall clientele base to over 63 lakhs. • The Bank has introduced various innovative techno savvy products/services and revised various existing schemes during the year to suit the convenience of the customers by focusing on the ever-increasing customer needs. • New Products/Services introduced and existing schemes revised during the year include:  Corp Pragathi Savings Bank a/c: No Frills Savings Bank account aimed at the low income segment to achieve the Financial Inclusion goal of the Central Government.  Acquiring of MasterCard: The Bank has tied up with MasterCard International wherein MasterCard Debit / Credit card holders can access their accounts through our ATMs.ATMs:With the accelerated thrust for ATM network, in tune with the changes and customerpreferences, the Bank has operationalised and networked 100 additional ATMs during theyear 2005-06 taking the total number of ATMs to 901 across the country.Automated Teller MachinesThe Bank has operationalised and networked 75 additional ATMs, taking the total number ofATMs to 1032, across the country. Firewall has been installed at the Bank’s FTS Centre,Bangalore. The Bank’s Switch has been upgraded to Triple DES. Direct Tax paymentthrough ATMs successfully tested, pending for launching. Real Time VISA Money transfer –instantaneous credit to the customer, is in the pipeline for implementation. Varied by Visa(VbV) – with a view to ensure better security for card not present transactions for e-commerce transactions will be made live shortly. BABASAB PATIL 10
  11. 11. To Determine the Effectiveness of Core Banking On Cash FlowBio-Metric ATMsThe Bank has installed 7 Bio-metric ATMs to cater to the requirements of rural clientele onpilot basis. After seeing the performance of these ATMs, the Bank proposed to examine thefeasibility of expanding the network of such ATMs at other Rural/Semi Urban areas so as tofacilitate the rural populace to have access to products and services that are on par with themetro locations.Social Concern • As in the previous years, during 2005-06 too the Bank took several steps to fulfill its social commitment. The Bank donated Rs.1.00 crore to the Maharashtra Chief Minister’s Relief Fund (Natural Calamities) to provide relief to the people affected by the flood in Mumbai during August, 2005. An amount of Rs.100 lakhs was donated to the Karnataka Chief Minister’s Drought and Natural Calamities Relief Fund for relief and rehabilitation of the victims of the flood in Karnataka. Further, an amount of Rs.100 lakhs was donated to Indraprastha Cancer Society and Research Centre, New Delhi towards spreading awareness amongst the people about the fatal ailment. • As a centenary celebration project the Bank dedicated a modern library and numismatic museum to the citizens of Mangalore at a cost of Rs.2.31 crore. • The Bank also set up libraries in 25 villages in the states of Karnataka, Tamilnadu and Andhra Pradesh, where Banking services are offered only by our Bank. • Apart from the above, the Bank also actively associated itself with various societal concerns in accordance with its donation policy.Corporation Bank Self-Employment Training Institute[COBSETI] BABASAB PATIL 11
  12. 12. To Determine the Effectiveness of Core Banking On Cash FlowThe Corporation Bank Self-Employment Training Institute [COBSETI] established on22.03.1996 is a training institute sponsored by the Bank. The institute takes care of thevocational training needs of Chikmagalur and Kodagu districts wherein the Bank has LeadBank responsibility. During the training period, boarding and lodging is provided free to thecandidates. As at March 2008, the Institute imparted training to 5651 candidates, out ofwhich 3354 persons have taken up self-employment ventures. The Institute is making all outefforts to motivate the trained persons in establishing self-employment ventures by co-coordinating with development departments in providing necessary linkages. During the year,the institute moved into its own building with all the basic amenities for the trainees.Including the grant of Rs 20.00 Lakhs received from the Government of Karnataka, the bankhas incurred an expenditure of about Rs.77.44 Lakhs in the construction of a new buildingand in providing the required infrastructure and Computers to the Institute.PERFORMANCE OF SUBSIDIARIES AND OTHER UNITS SPONSORED BY THEBANKCorp Bank Homes LtdCorp Bank Homes Limited, the wholly owned housing finance subsidiary of the Bank, hasearned an operating profit (Profit before Tax) of Rs.1.09 crore for the year 2005 – 2008 asagainst Rs.5.96 crore for the previous year. As against the cumulative provisioning of Rs.4.45crore during 2004-2005, at the end of the current year, theProvisioning has doubled to Rs.8.90 crore. The Net Profit after Tax for the year ended March31, 2008 was Rs.1.29 crore as against Rs.4.97 crore for the previous year. The Loandisbursement by the Company aggregated to Rs.17.83 crore during the year and theoutstanding advances stood at Rs.270.83 crore as at March 31, 2008. The net worth of theCompany increased to Rs.33.19 crore as against Rs.31.90 crore in the previous year.MERGER OF CORP BANK HOMES LIMITEDThe Board of Directors of the Bank has taken a decision to merge its subsidiary, Corp BankHomes Limited, with the Bank, after meeting statutory and all other requirements. Themerger petition has already been filed with the Honorable High Court of Karnataka atBangalore. BABASAB PATIL 12
  13. 13. To Determine the Effectiveness of Core Banking On Cash FlowCORP BANK SECURITIES LIMITEDThe wholly owned subsidiary of the Bank, Corp Bank Securities Limited, a primary dealer inGovt. Securities posted loss of Rs 1.96 crore, during the fiscal, as against Rs. 68.68 Croreduring the previous year as a result of continued rise in bond yields, tightness in liquidity andincreased demand for credit in preference to debt instruments. The 10 year yield, which was6.69% as at the end of March 05 rose to 7.52% as at the end of current fiscal. As PrimaryDealer, the Company had to take involuntary position in each primary market auction and toprovide room for fresh securities, by paring the portfolio even in under favorable marketconditions. The loss is brought down from Rs. 68.68 Crore to Rs. 1.96 Crore. The outrightand repo turnover for 2005-06 was Rs 54,478 crore. Consequent to the operating loss, the NetOwned Funds marginally came down from Rs 133.42 crore to Rs 131.49 crore, while theCapital Adequacy Ratio position was comfortable at 553%, on account of lower riskweighted assets held as against the Net Owned Funds as on 31.3.2008.Corp Bank Securities Limited The wholly owned subsidiary of the Bank, Corp BankSecurities Limited, (CBSL) earned total income of Rs.8.64 crore during 2008-09, postedProfit before tax of Rs.8.29 crore and Profit after tax of Rs.6.67 crore. During the .scald, thecompany paid an interim dividend of Rs.5 crore and also bought back 25% its Equity Shareof Rs.25 crore face value at a consideration of Rs.35.63 crore i.e. at a premium of Rs.10.63crore. The Paid-up Share Capital, post buy back and as on 31.3.09 was Rs.75 crore andconsequently the Net Owned Funds came down to Rs.107.83 crore as against Rs.142.85 croreas the end of previous year. The Company, apart from its existing business of distribution ofMutual Fund products, started dealing in Certificate of Deposits, Dated Govt. Securities andTreasury Bills and earned net business income of Rs.0.97 crore for the year. Besides, theCompany could earn interest & dividend income of Rs.5.90 crore on its investment of surplusfunds. The Company would continue to pursue various other business activities in the .scald2009-10 after securing approvals from its Board and other regulatory authorities.Chikmagalur-Kodagu Grameena Bank [CHIKO Bank] the Chikmagalur-Kodagu GrameenaBank [CHIKO Bank], sponsored by the Bank has a network of 52 branches, of which5 branches were opened during the year. Deposits of CHIKO Bank stood at Rs.246.47 croreand advances at Rs.172.90 crore [gross] as on 31.03.2009. CHIKOBank recorded a net profit BABASAB PATIL 13
  14. 14. To Determine the Effectiveness of Core Banking On Cash Flowof Rs.4.02 crore [before taxation] and Rs.2.52 crore [after taxation] for the year ended31.03.2009.CORPORATE GOVERNANCE IN CORPORATION BANKCorporation Bank has been practicing the principles of good corporate governanceconsistently over the years. Corporate Governance at Corp Bank is evolved not only byensuring compliance with regulatory requirements but also by being responsive to customerneeds. The Bank strives for excellence with the objectives of enhancing satisfaction both toits customers and shareholders.COMPLETES A 100YRS OF BANKINGCorporation Bank has completed 100 years of existence on 12 March 2008. The Centenarycelebrations were launched by Shri V. Leeladhar, Deputy Governor, Reserve Bank of Indiawith the Banks Foundation Day lecture on 12 March 2005. As a part of the Banks centenarycelebrations, a number of programmes and projects were planned and executed. As a firststep, the Bank has launched the Corp Kissan Card - debit card tied up with VISAinternational,, to enable the farmers make timely purchases for agricultural operations. atYeshwantpur-Malur in Kolar District on 13 March 2005. A modern public library wasdedicated to the citizens of Mangalore in DK District, the birth place of the Bank by Shri P.Chidambaram, Union Finance Minister on 2 March 2008. The library building also houses aNumismatic Museum and a multi purpose hall for intellectual activities. The Bank has alsoset up libraries in 25 villages and given away scholarship to 100 meritorious students of suchvillages for the pursuit of their higher education. Such libraries will be set up in 75 morevillages in a phased manner.RATINGSCRISIL has re-affirmed the following programmes of Corporation Bank: • Rs.2 billion Bond issue AAA. • Certificate of Deposits Programme P1+. • Fixed Deposit Programme FAAA. BABASAB PATIL 14
  15. 15. To Determine the Effectiveness of Core Banking On Cash FlowAWARDS WON • National Award for Assistance to Exporters from the President of India (1976-77) • Gem & Jewellery Export Promotion Council Award successively for 5 years from 1981 to 1985 • Shiromani Award 1992 for Banking from Union Minister for Commerce • Best Bank Award for Excellence in Banking Technology from Institute for Development and Research in Banking Technology (IDRBT), Hyderabad (2001) • Best Bank Award for Innovative Usage and Application on INFINET (Indian Financial Network) from Institute for Development and Research in Banking Technology (IDRBT), Hyderabad (2002) • Best Bank Award for Delivery Channels from Institute for Development and Research in Banking Technology (IDRBT), Hyderabad (2003) • Runner-up Awards in the “Best Online and Multi-channel Banking Team” and “Outstanding achiever of the year-corporate” categories in recognition of outstanding achievement in Banking Technology for 2004, instituted under the aegis of Indian Banks Association and Trade Fairs & Conferences International. BABASAB PATIL 15
  16. 16. To Determine the Effectiveness of Core Banking On Cash FlowMAJOR RECOGNITIONS • One of the Best 200 companies world over outside the US having a turnover under a billion US$ - Forbes Global, Hong Kong, issue dated 27 October 2003 • India’s Best Public Sector Bank - Business Today - KPMG Survey dated 7 December, 2003 • India’s Strongest and Asia’s Second Strongest - The Asian Banker, Singapore dated 15 December 2003 • India’s Best Public Sector Bank - Outlook Money , 15 March 2004 • One among the Best 200/100 companies in Asia/Pacific and Europe having turnover under a billion US $ - Forbes Global, Hong Kong dated 1 November 2004 • One among India’s Best Public Sector Banks - Business Today, 26 February 2008 BABASAB PATIL 16
  17. 17. To Determine the Effectiveness of Core Banking On Cash Flow ORGANIZATION CHART Organization Structure of corporation Bank at RNR BRANCH Branch Manager Officer Spl Asst Clerk Clerk Clerk Cash Clerk CashCash Receipts Cash Payment Clearing Term Deposits BABASAB PATIL 17
  18. 18. To Determine the Effectiveness of Core Banking On Cash Flow BOARD OF DIRECTORS CHAIRMAN & MANAGING DIRECTOR EXECUTIVE DIRECTOR GENERAL MANAGERS PORTFOLIOS 1. Management Committee 2. Audit Committee 3. Departmental Promotion Committee 4. Investor Grievance Committee 6. Risk Management Committee 7. Committee to monitor large value frauds 8. Share Transfer Committee 9. Customer Service committee 10. Remuneration committee GM Offices/Regional Offices - 18 Branches - 8100 BABASAB PATIL 18
  19. 19. To Determine the Effectiveness of Core Banking On Cash FlowThe Board of DirectorsThe Board is constituted in accordance with the Banking Companies (Acquisition andTransfer of Undertakings Act 1980 and Nationalized Banks Scheme 1980 and isrepresented by persons with diversified professional experience. The Directors bring in widerange of expertise and experience to the Board, facilitating proficient and unbiased directionand control to the Bank. The Board has constituted various committees as under, which providespecific and focused governance in the important functional areas and control affairs of the BABASAB PATIL 19
  20. 20. To Determine the Effectiveness of Core Banking On Cash FlowBank. BABASAB PATIL 20
  21. 21. To Determine the Effectiveness of Core Banking On Cash Flow BABASAB PATIL 21
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  24. 24. To Determine the Effectiveness of Core Banking On Cash Flow BABASAB PATIL 24
  25. 25. To Determine the Effectiveness of Core Banking On Cash FlowManagement Committee:The Management Committee is constituted as per the provisions of Nationalized Banks(Management and Miscellaneous provisions) Scheme 1980 and consists of 6 Directors.Audit Committee:The formation and functioning of Audit Committee is governed by the directions of RBI. TheAudit Committee provides direction as also oversees the operation of the total audit functionsin the Bank and follow up the statutory/external audit of the Bank and inspection of RBI.Departmental Promotion Committee:The Committee assesses the disciplinary cases and promotions to top executive cadre in theBank.Investor Grievance Committee:The Committee looks into the redressal of investor grievances.Information Technology Committee:In the changing environment, to suit the growing needs of customers, the Bank has beentaking various initiatives. To guide the bank for accelerated implementation of these projectsand also to explore the possibility of providing innovative technology based products, thisCommittee has been constituted.Risk Management Committee:The Committee was formed to guide the bank in respect of integrated risk management. BABASAB PATIL 25
  26. 26. To Determine the Effectiveness of Core Banking On Cash FlowIntegrated Risk Management SystemRisk Management is an integral part of a Bank’s organizational structure and businessstrategy. Identification, measurement, monitoring and controlling the risk enables theBank to minimize losses and maximize profits. The major types of risk faced by the Bank areCredit Risk, Market Risk and Operational Risk.Risk Management Committee of Executives and Risk Management Committee of the Boardare looking after the implementation of integrated risk management systems in the Bank.Bank has well laid down risk management policies for management of credit risk, market riskand operational risk. In the area of credit risk, the Bank had in the year 2006 upgraded therating models applicable for borrowers under commercial loan segment. The rating modelsare working on web based enterprise wide solution called Risk Assessment Model (RAM).The software, apart from rating the borrowers helps in preparation of appraisal notes. Thissoftware will enable the Bank to build database for moving over to IRB approach of Basel –II. The software also has a module called Capital Assessment Model (CAM), which is used tocompute capital for credit risk under Standardized Approach of Basel-II as prescribed byRBI. Bank has complied with the timeframe prescribed by RBI for computation of capital asper Basel II norms, i.e. 31.03.2009.For management of operational risk, Bank has introduced the system of incident reporting,which helps in identifying operational risks. Corrective steps are taken for mitigating theserisks and for upgrading the control mechanism. Under Risk Based Supervision, Risk ProfileTemplates covering business risks and two control risks are prepared on quarterly basis andsubmitted to Reserve Bank of India. BABASAB PATIL 26
  27. 27. To Determine the Effectiveness of Core Banking On Cash FlowCommittee to monitor large value frauds:With a view to provide focused attention on monitoring frauds of Rs.1 Crore and above, thisCommittee has been formed.Share Transfer Committee:In order to meet the request of the shareholders such as transfer, re materialization andduplicate shares, the Committee was constituted.Customer Service Committee:With a view to safeguard the individual customer’s right and to deliver better customerservice, the Committee was constituted.Remuneration committee:The Remuneration committee was constituted to evaluate the performance for arriving at theeligible incentive amount under performance linked incentives to the whole time directors(viz.CMD and ED). BABASAB PATIL 27
  28. 28. To Determine the Effectiveness of Core Banking On Cash Flow WHAT IS CORE BANKING?  Core Banking is normally defined as the business conducted by a banking institution with its retail and small business customers. Many banks treat the retail customers as their core banking customers, and have a separate line of business to manage small businesses. Larger businesses are managed via the Corporate Banking division of the institution. Core banking basically is depositing and lending of money.  Normal core banking functions will include deposit accounts, loans, mortgages and payments. Banks make these services available across multiple channels like ATMs, Internet banking, and branches. Core Banking Solutions is new jargon frequently used in banking circles of India. The advancement in technology especially internet and information technology has lead to new way of doing business in banking. BABASAB PATIL 28
  29. 29. To Determine the Effectiveness of Core Banking On Cash Flow  The technologies have cut down time, working simultaneously on different issues and increased efficiency. The platform where communication technology and information technology are merged to suit core needs of banking is known as Core Banking Solutions. Here computer software is developed to perform core operations of banking like recording of transactions, passbook maintenance, and interest calculations on loans and deposits, customer records, balance of payments and withdrawal are done. This software is installed at different branches of bank and then interconnected by means of communication lines like telephones, satellite, internet etc. It allows the user (customers) to operate accounts from any branch if it has installed core banking solutions.  Core banking is a centralized approach to handling of bank data and applications. thus the data and application of all the branches reside in one centralized location [in a common server] and the branches can access their data through a link provided to the centralized server.Besides,branches will also have access to the data of other branches and can handle operations across branches.  In core banking, a centralized server is maintained at a designated place and a connectivity network is also established as a backbone. Such centralized data maintenance will give strategic advantage to the bank. Customers will be the big beneficiaries. At the same time, a centralized data maintenance and MIS will relieve the branches and the zonal set ups the burden of information generation and follows up. BABASAB PATIL 29
  30. 30. To Determine the Effectiveness of Core Banking On Cash Flow BABASAB PATIL 30
  31. 31. To Determine the Effectiveness of Core Banking On Cash FlowFEATURES  Although decentralized automation at the micro or the branch level, achieved the primary objectives of handling additional volumes, imparting better customer service / customer convenience, improving productivity etc. to a great extent, at the macro level, there was always a scope for improvement.  The decentralized environment was handicapped to an extent in imparting the desired extent of flexibility to MIS generation, introduction of Customer Relationship Management [CRM] functions, Data warehousing and Data mining facilities etc. Further, the implementation of innovative delivery channels and techno-savvy products are also relatively difficult in decentralized environments.  A typical Core Banking Solution envisages the branches being linked to a centralized location for accessing data. The users will be logging on to the Core Server from remote branches and all program executions will take place only at the Core Server. From the view point of the institution, the availability of data centrally affords the flexibility of using the consolidated pool of information at the disposal which is capable of tremendous processing and information generation capabilities.FACILITIES Compared to a decentralized setup, the Core Banking Solution has the following advantages: • Centralized database for performing various online banking utilities • Facilitates Any Branch Banking • Shifting of time consuming activities like End of Day (EOD) processing, Interest calculation, interest posting, debiting inward clearing cheques etc., to centralized location to enable the field level functionaries to concentrate on customer service and marketing activities BABASAB PATIL 31
  32. 32. To Determine the Effectiveness of Core Banking On Cash Flow • Facilitates centralized auditing of branches • Provides for effective monitoring by the controlling offices • Facilitates ease of maintenance of the package • Enables simultaneous launching of new products across all branches connected To the CBS • Paves the way for setting up a Data Warehouse • Facilitates better MIS as a decision support tool. The Core Banking environment offers a totally different perspective from the business angle when compared to a decentralized environment. With the Core Banking in place, the focus of erstwhile "Branch Banking" will shift to "Bank Banking". Further, the banking operations assume "Round the clock" capability which is not limited by closure of the branches, holidays etc.DEPENDENCIES  As in the case of any technology based service, there are some dependencies for the Core Banking applications also. Some of the critical dependencies are on the Network, Competent Manpower and the Pre-Core Activities to be completed at the branches.  The Bank has all its branches automated using the TBA package. In a typical scenario, the branches start afresh on Core Banking package. This requires the details of all the existing accounts, masters etc. to be created afresh. The Bank has gone in for a Core Banking solution which offers the flexibility of migrating from the existing TBA by converting all the relevant data to the Core. BABASAB PATIL 32
  33. 33. To Determine the Effectiveness of Core Banking On Cash Flow  This entails that a lot of pre-core activities have to be accorded due importance as the success of the CORE Banking setup [CBS] hinges on these activities to a great extent.PRE-CORE ACTIVITIES AT BRANCHES  Whilst on this it may be relevant to note that there are certain activities, which need to be done by the branch officials in co-ordination with the officials of the Zonal Computer Centers so as to be in all readiness for the transition from an automated branch to a core banking branch.  With a view to helping the branch officials for smooth transition from TBA to Core Banking, the following step by step activities are listed. Needless to mention, these activities have to be completed at least 15 days prior to migration to the Core Banking solution.HOUSE-KEEPING  Balancing and tallying of accounts is one of the important pre-requisites for migration to Core Banking. It shall be ensured that the balances of the following heads of accounts are tallied with the General Ledger: • Running accounts like SB, CA, OD, CC etc. • Loan accounts like HPL, DLS, HL etc., • Deposit accounts like FD, KCC, RD, JD etc., • Interest Payable Account • Pay Orders Account • Bills like DBC, BDD, OBCC, OBCO, IBC, BE, BELC, LRDS etc. • Sundry Assets and Suspense Accounts BABASAB PATIL 33
  34. 34. To Determine the Effectiveness of Core Banking On Cash Flow  The branches shall submit a confirmation to this effect by furnishing the details sought in the Format prescribed for the purpose for recording the balancing figures, GL figures, No. of accounts etc. in Annexure-1, Annexure-2, & Annexure-3. These formats shall be duly authenticated by the officials of the branch on recording the relevant details.  Further, the branches shall ensure that: • All balances of breakup GLs under a Sub GL are tallied with respective Sub-GL balance • All the SUB-GLs under a GL are tallied with respective Main GL balance.  The scanning and tagging of signatures are activities which are pre-requisites for effective CBS and for implementation of Any Branch Banking [ABB]. If the signatures are not scanned and tagged, the branches would find it difficult to honor the cheques of a customer of another branch under ABB. The branches therefore need to accord top priority to this activity and are advised to scan and tag the signatures on a day to day basis and to keep them updated.REPORT GENERATION IN IBAS6  In order to check the accuracy and integrity of data on migration to CBS, the branch shall generate the various reports mentioned below in the TEA environment before migration. As it is also planned to preserve the generated report files, the following steps shall be followed: Create a separate directory CORE in J:REPORTS • Map J: =VOLl:REPORTSCORE so that all the reports will be generated inJ:REPORTSCORE..The branches shall take 2 sets of these reports and these printed reports areto be verified for accuracy and authenticated by the branch personnel. One copy of the report shallbe preserved by the branch permanently for future reference and auditing purposes and the other copy BABASAB PATIL 34
  35. 35. To Determine the Effectiveness of Core Banking On Cash Flowshall be forwarded to the Core Centre, Bangalore for verification of these reports with thereports generated in the Core Server after migrating the branch data.The following reports shall be generated for the dates mentioned: • Last day of the previous three quarters • First day of the previous three quarters 01 R_RDSHT RD/TB 02 R_TRIAL Trial Balance 03 R_CORPBK Sub day book 04 R_GLASON GL as on date 05 R_CSHSCL Cash scroll 06 RJTRFSCR Transfer Scroll 07 R_BPOOST PO outstanding list 08 R_CLGSCR Clearing Scroll 09 P-OCAUTH Clearing register 10 R_OCLED Clearing ledger 11 R_PAC For a few selective parties 12 R_OUTGS Outstanding BGs 13 R_SUMBAL Balancing of all GLs for above dates 14 R_ACBAL Balancing name wise (for a few heads) 15 R_MSM01 MSM for a date 16 R_BOOK81 Originating Entries 17 R_BOOK82 Responding Entries 18 P_B81DF IBR Data file generation 19 R_EXLST Exception Transaction List 20 R-TCHK Transaction Check list 21 R_CCLST Master data printing BABASAB PATIL 35
  36. 36. To Determine the Effectiveness of Core Banking On Cash FlowSTANDARDIZATION OF GL/SUB-GL/BREAKUP-GL  As the entire database of the Bank in the CBS will be available in a single place, to maintain uniformity and ensure compatibility, there is a need for standardizing most of the Master Records to be used by the branches like : • Prefix master • Mode of Operation • Place Master BABASAB PATIL 36
  37. 37. To Determine the Effectiveness of Core Banking On Cash Flow • Country Master • State Code Master • Branch master of the Bank • General Ledger, Sub-GLs and Breakup GLs  The standardization of Masters is also very critical to generate meaningful MIS from the Core Centre. A list of standardized GL/SUB-GL/BREAKUP-GL is enclosed in Annexure-4 for your information.  Instances have been observed wherein branches have posted some transactions for a given GL/Sub-GL/Breakup-GL in one accounting year (For e.g.: Transaction posted in the year 2002-2003 for 821/52/71 - Sundry Assets - Sundry Debtors - Advances drawn by XYZ) and have deleted such Sub-GLs or Breakup GLs in the subsequent year (For e.g.: the branch has deleted the Breakup- GL 71 of 821/52 in the year 2003-2004).  In all such instances the transactions posted for the deleted Sub-GLs / Breakup GLs will be displayed when the program Q_TR or Q_TRAN is invoked, as these transactions are not deleted. But they may not get displayed when Q_GLASON is invoked as the Sub-GL/ Breakup-GLs are deleted. This will result in anomaly m the R_GLASON report generated by the branch for dates of the earlier year.  In order to ascertain whether such mistakes have taken place in the branch, the program R_GLSCAN shall be run which will read the transaction files and generate a report of such of those transactions for which master details of GL/ Sub- GL / Breakup-GLs are not available.  If any Sub GL / Breakup-GLs are missing, the same should be created using M_GLSH and M_GLGB (option 17 and 18 of Main Menu).  The program R_MISSSG shall give a report on missing Sub-GL for Breakup-GLs. The missing Sub-GLs can be created using M_GLSH. BABASAB PATIL 37
  38. 38. To Determine the Effectiveness of Core Banking On Cash Flow  Wherever unwanted break-up GLs exist and if there is no balance or no transactions during the last 2 years, the same may be deleted.  The existing GL/SUB-GL at the branch has to be mapped to the standardized GL supplied by the Core. If the branch finds any Breakup-GL which has been now brought to the level of GL/ SUB-GL in the standard supplied by the CORE, they are to be mapped accordingly. Branches have to write the mappings in the R_GLASON report taken at the branch.STANDARDIZATION OF MASTERS  Under the Core Banking environment, standardization of MASTERS has been earned out. A List of standardized MASTERS is enclosed (Annexure-5 and Annexure-6).  Some instances have been observed wherein the branches have deleted some SUB- TYPES of some account types after putting through transactions in those accounts and sub types for some time. This is similar to deletion of Sub-GL / Breakup GL as explained earlier resulting in some anomaly. In order to identify such deletion, the programs R_AMTYPE, and R_BLTYPE shall be run which shall give report on missing Parent Master for Account type/Sub type, Bill type. These reports shall indicate account type/bill type used and subsequent deletion of the account type/bill type master. *** in the report indicates missing Master but used at the account level. The Conversion Team from the Zonal Computer Centre shall decide whether such master is to be added or not. If it is to be added, as some live accounts could be available, after adding the same such account types/bill types are to be mapped to the standard masters supplied to the branch.  The Conversion Team from the Zonal Computer Centre shall map all the deviations in the master with the Standard Master supplied by the Core Centre. The branch shall then take the printouts of Masters using print option available in the respective master programs. (Refer Annexure 5 & Annexure 6) BABASAB PATIL 38
  39. 39. To Determine the Effectiveness of Core Banking On Cash FlowBRANCH SPECIFIC PARAMETERS  As mentioned earlier, standardized parameters shall be created for each of the modules Arid these parameters shall be bifurcated as given below: (a) Parameters maintained by the Core Centre which is applicable to all branches (b) Branch specific parameters,  For example, parameters like Deposit Interest Rate, TDS Rate, Account Closure, Outward Bills Charges, DD/PO accounting parameter etc. are maintained at the Core and the branches will not be in a position to modify these parameters whereas parameters like Locker Charges, DD/PO charges etc. which are specific to branches are examples of Branch-wise parameters which can be changed by the branches. The branch specific parameters shall be kept ready by all branches identified for Core Banking for different modules like : • Demand Drafts • Pay Orders, • Telegraphic Transfer/Mai 1 Transfer, • Bills/Cheques for Collection, • Purchase of Bills/cheques, • Outward clearing returns, • Inward clearing returns, • Locker rent, • Folio charges, • Cheque book issue charges, • Charges for duplicate statement of accounts, • Charges for not maintaining minimum balances, • Charges for utilizing cheque leaves, BABASAB PATIL 39
  40. 40. To Determine the Effectiveness of Core Banking On Cash Flow • Other charges for OD/CC accounts while calculating interest etc.  These branch specific parameters will be updated at the Core Centre, branch-wise as a one time measure before the branch goes live under the Core environment. Subsequent changes required for these parameters are to be effected by the branches by choosing the appropriate options.  Branch shall also provide the following information in the Annexure-7 format. • Last Inter Branch Transaction Serial Number used (TSL. NO.) • Last used Pay Order Serial Number • Last used Account Serial Numbers under each account types and sub-types. • Last used serial numbers of LC/BG/LOCKER • Last used serial number for Telegraphic Transfer • Last used serial number for Mail Transfer • Last used serial numbers for Inward & Outward Bills/Cheques • Last used serial number for TDS- 16ASTANDARDISATION OF LOGIN-ID/USER-ID  In the Core Banking environment, the Login-ID for the Core UNIX Server shall be the respective Employee numbers (E.g. E02336). Standardization has also been made in respect of Login-IDs in the Core UNIX Server and User-IDs in the Application Software. Since the operating system used in the Core server being UNIX is case sensitive, the users shall take care to remember the upper or lowercase in which the characters are entered while keying in the passwords for logging into the Core UNIX Server  The User-ID in the application software shall always be in upper case as hitherto being used in IBAS6, Hence, the alphabet E at the beginning of the employee number of the user-id shall be BABASAB PATIL 40
  41. 41. To Determine the Effectiveness of Core Banking On Cash Flow given in upper case only, (E.g. E02336). Please note that the Password is also case sensitive. (E.g. the password LASER is different from laser and Laser is different from Laser)  In view of the above changes and to assist the Core Migration Team to create the users of each branch, the branches are required to prepare a list mentioning the following details in respect of all the employees working presently in the branch : • E. No. • Name • Designation • Signing Power Number (In the case of Special Assistant & Officers) • Date of joining at the Bank and Branch • Details of employees on deputation to the branch need to be mentioned with Information about their base branches as per format in Annexure-8PHASE-1-HISTORY DATA  On completion of the aforesaid exercises, the backup of data shall be taken with the assistance of the officials of the ZCCs. The officials of the ZCC shall also scan the data of the branch for any corruption. Once the scanning process is completed, the data from the date of computerization of the branch till the previous quarter shall be backed up in CDs in 3 sets / copies by the officials of the ZCC. The CDs containing the files *.7*, *.8*, *.9*, *.0* (except current quarter) shall be sent to Core Centre, Bangalore in advance so as to enable the Core Centre to start the preparatory work in connection with data migration in advance. The Branch shall also send a letter in duplicate enclosing the CDs to the Core Centre, Bangalore as per format in Annexure-10. The Core Centre on receipt of the CDs shall return the duplicate BABASAB PATIL 41
  42. 42. To Determine the Effectiveness of Core Banking On Cash Flow copy of the letter to the branch duly signed, as a confirmation for having received the CDs. It is essential for the Core Centre to receive the data CDs of the branches identified for migration to Core banking at least 15 days in advance.  One copy each of CDs shall be kept in the fireproof cabinet at the branch as well as at the Zonal Computer Centre.PHASE-H-CURRENT QUARTER DATA  It is ideal to take up the migration process only on weekly holiday / holiday of the branches so that the converting team has sufficient time to convert the data. One day prior to the planned date of migration (on Friday in most of the cases if Sunday is the weekly holiday) the data of the branch shall be scanned by the officials of the ZCC for corruption, if any, so that such corrupted data can be recovered and kept ready for being sent to the Core centre, the next day. Once the data is ensured free from corruption, the *.BNK and *.0* files of current quarter, *.COB, *.SCN, *.EXE, *.BAT, *,MSG & *.COM, *.DLL etc. available in the LIVE AREA i.e. L:1BAS6 and also the reports generated in J:REPORTSCORE shall be copied in CDs by the officials of the ZCC. The CDs shall be cut into 3 copies / sets. The Branch shall send a letter in duplicate enclosing the CDs to the Core Centre, Bangalore as per format in Annexure-10. The Core Centre on receipt of the CDs shall return the duplicate copy of the letter to the branch duly signed, as a confirmation for having received the CDs. It shall be ensured that the copying of data from the live area to CDs as mentioned above shall be undertaken only after tallying RD/TB and completing the EOD process for that day i.e. on the eve of migrating to Core Banking. It shall also be ensured that if any Outward Clearing Returns have been marked, the same has been debited to the respective accounts / heads by executing Clearing the Unclear option. BABASAB PATIL 42
  43. 43. To Determine the Effectiveness of Core Banking On Cash Flow This is required since in the new software, procedure for marking the returns has been changed to accept the Clearing date & Serial number under which the instruments have been returned.  One copy of the CDs containing the data of the current quarter shall also be sent to the Zonal Computer Centre and another copy shall be kept in the fireproof cabinet at the branch.NEW MENU (FOR INFORMATION)  Under the Core Banking software, flexibility is available to define the MENU to be shown To different levels of users such as: • Manager & Officer • Operator  A copy of the new menu list is provided to the branch so as to enable the staff members to become familiar. The details of the different levels of the menus are displayed in Annexure-9STATUS OF MODULES IMPLEMENTED  In order to ascertain whether all the modules have been ported and also for the purpose of migrating al the implemented modules, the branches shall provide the details in the format as per Annexure-12.MANAGEMENT OF HISTORY DATA IN THE NOVELL SERVER  The branch servers used until the date of migration will be available in the branches only for verification of entries made, printing of old entries in Pass Book, attending to the queries of Customers, Government Agencies etc. BABASAB PATIL 43
  44. 44. To Determine the Effectiveness of Core Banking On Cash Flow  The data from the beginning of the previous financial year onwards, till the current date of migration will only be migrated to Core immediately.[ i.e. a branch getting migrated to Core Banking in the financial year 2003-04 from TEA shall have only data from 01-04-2002 in the Core Banking setup]. The migration of data from the date of computerization of the branch till the year end up to which the data has been migrated to Core Banking [i.e. 31-03-2002 in the above case] will be taken up at a later date.  Therefore, till such time the entire history data is migrated to Core Banking, the branch shall use the Novell Server for all the queries, pass book printing, statement of accounts, report generation etc.  As a security measure, all the entry programs in the Novell Server shall be deleted by the officials of the ZCC permanently so that it is not possible to put through any entries / transactions in the Novell Server.  Further, the officials of the branch shall once login to the Novell Server using Admin-ID and password to ascertain whether the password is accepted / correct. Once successfully logged into the Novell Server using ADMIN ID and password, the Admin password shall be kept in a sealed cover and preserved in the Double Lock of the branch. A copy of the Admin password shall be also kept in a sealed cover and handed over to the ZCC official who visits the branch for Migration activity for preservation at ZCC under double lock.POST-CORE ACTIVITIES  User ID of Branch Officials Once the data migration is completed, the USER-IDs of the branch officials will be created at the Core Centre. The default password will also be given at the Core Centre. These User-IDs and the default passwords will be communicated to the respective branches. BABASAB PATIL 44
  45. 45. To Determine the Effectiveness of Core Banking On Cash Flow  User ID of the Branch Staff As soon as the officials of the branch using the User-IDs, log in to the Core UNIX Server, There will be a prompt to change the password. The Branch Officials shall change the password immediately. The USER-IDs for all the staff members working at the branch shall be created. The same need to be authenticated by two officials other than the official who has created the USER IDs.  Generation of reports in Core Unix Server  Based on the information provided on Mapping of Account Types, GLs, Sub- GLS, Breakup GLs, Masters etc., the Core Team shall execute a set of programs for mapping the branch data to the core data and perform a process by which the Master and Transaction data of the branch will be migrated to a format as required by the Core Banking Software. As the migration process has also ensured standardized masters, GL, SubGL, Breakup GLs, Account Types etc., it is necessary to check the integrity of the converted data.  A report will be generated at the Core Centre showing the details of the mappings carried out. This report will be sent to the Branch and the Officials at the branch / Branch Manager shall verify the report and certify the accuracy on the same day. Specimen of the Certificate is attached as Annexure-11.  To perform such an integrity check, the branch shall generate various reports mentioned above from the migrated data from Core Unix Server and verify with the reports generated earlier in TEA [IBAS6] of Novell Server. The figures in both the reports should tally. The Branch shall report the inconsistencies if any, to the Core Conversion team immediately.  If the Branch is satisfied about integrity of the data based on the various reports generated from the Core UNIX Server, they should give a certificate to the BABASAB PATIL 45
  46. 46. To Determine the Effectiveness of Core Banking On Cash Flow effect that the Branch has successfully converted, on the migration day itself. Specimen of the format of the Certificate is attached as Annexure-11. The Certificate along with the reports generated both in NOVELL SERVER and CORE UNIX SERVER should be authenticated by the branch officials/Branch Manager. The same should be filed and kept in double lock for future verification and auditing.CASH FLOW STATEMENT OF CORPORATION BANKThe cash flow statement is distinct from the income statement and balance sheet because itdoes not include the amount of future incoming and outgoing cash that has been recorded oncredit. Therefore, cash is not the same as net income, which, on the income statement andbalance sheet, includes cash sales and sales made on credit.Cash flow is determined by looking at three components by which cash enters and leaves acompany: core operations, investing and financing, BABASAB PATIL 46
  47. 47. To Determine the Effectiveness of Core Banking On Cash FlowOPERATIONSMeasuring the cash inflows and outflows caused by core business operations, the operationscomponent of cash flow reflects how much cash is generated from a companys products orservices. Generally, changes made in cash, accounts receivable, depreciation, inventory andaccounts payable are reflected in cash from operations. Cash flow is calculated by making certain adjustments to net income byadding or subtracting differences in revenue, expenses and credit transactions (appearing onthe balance sheet and income statement) resulting from transactions that occur from oneperiod to the next. These adjustments are made because non-cash items are calculated into netincome (income statement) and total assets and liabilities (balance sheet). So, because not alltransactions involve actual cash items, many items have to be re-evaluated when calculatingcash flow from operations.INVESTINGChanges in equipment, assets or investments relate to cash from investing. Usually cashchanges from investing are a "cash out" item, because cash is used to buy new equipment,buildings or short-term assets such as marketable securities. However, when a companydivests of an asset, the transaction is considered "cash in" for calculating cashFrom investing. BABASAB PATIL 47
  48. 48. To Determine the Effectiveness of Core Banking On Cash FlowFINANCINGChanges in debt, loans or dividends are accounted for in cash from financing. Changes incash from financing are "cash in" when capital is raised, and theyre "cash out" whendividends are paid. Thus, if a company issues a bond to the public, the company receives cashfinancing; however, when interest is paid to bondholders, the company is reducing its cash.BENEFITS FROM USING CASH FLOWThe cash flow statement is one of the four main financial statements of a company. The cashflow statement can be examined to determine the short-term sustainability of a company. Ifcash is increasing (and operational cash flow is positive), then a company will often bedeemed to be healthy in the short-term. Increasing or stable cash balances suggest that acompany is able to meet its cash needs, and remain solvent. This information cannot alwaysbe seen in the income statement or the balance sheet of a company. LITERATURE SURVEY The title of the project report is “To Determine the Effectiveness of Core Banking OnCash Flow” of corporation bank at RNR BRANCH.BODY OF THE REPORT:  The research is under taken to determine the effectiveness of core banking on cash flow introduced by corporation bank.  Primary data was collected by administration questionnaire of 100 customers & 10 employees (All) of corporation bank at RNR BRANCH.  The questionnaire was specially framed to meet the requirement of the survey. BABASAB PATIL 48
  49. 49. To Determine the Effectiveness of Core Banking On Cash Flow  Direct contact was made with the respondents through random sample to collect the needful information with reference to our objective as for to meet the survey requirements.STATEMENT OF PROBLEM: • “ To Determine the Effectiveness of Core Banking On Cash Flow” of Corporation bank at RNR BRANCH.MANAGEMENT PROBLEM: Today every bank is offering the services which can simplify the banking system. Corporation Bank is serving the customer community since past 101 years & has now introduced a unique concept of banking that is core banking at RNR BRANCH. The Management now wants to know the effectiveness of core banking on cash flow.PURPOSE OF THE STUDY: Since corporation bank at RNR BRANCH has introduced the concept of core banking recently. The Management, in this survey wants to find out the growth percentage of cash flow by introduction of core banking solutions & also to know the impact of core banking on employees & customers of corporation Bank. BABASAB PATIL 49
  50. 50. To Determine the Effectiveness of Core Banking On Cash FlowOBJECTIVES OF THE STUDY • The main objective of the study is to determine the effectiveness of core banking on cash flow. • To know the impact of core banking on employees & customers of corporation Bank. • To analyze the core banking Activities • To find out the growth percentage of cash flow by introduction of core banking. • To analyze the difficulties of core banking and suggest suitable remedies. METHODOLOGYSample size: • A sample of 100 customers & 10 employees of the bank were chosen for the purpose of study.Sampling procedure: Random Sampling Method. BABASAB PATIL 50
  51. 51. To Determine the Effectiveness of Core Banking On Cash Flow • From the large number of account holder’s of the bank, 100 customers were selected randomly from the bank’s data base & since there are only 10 employees working under the concept of core banking all the employees were considered for the study.Research design • Since the management problem is already known the research design best suitable for this research is Descriptive research design.Data Collection Method To fulfill the objectives of my study, I have taken both into considerations viz primary& secondary data. Primary Data: • Primary data was collected through making survey, which is systematic collecting of information directly from the respondents i.e. through Questionnaires. Secondary Data: • Secondary data was collected through Organizational records. • The various sources that were used for the collection of secondary data are o Internal files & materials o Websites – www.corporation.comMeasuring tools • For this purpose measurement technique used for survey is questionnaire to collect information from the respondents. Having collected the information, the information was represented by using statistical tools like bar charts and pie charts. BABASAB PATIL 51
  52. 52. To Determine the Effectiveness of Core Banking On Cash Flow • Second measuring tool is the result of the analysis of cash flow statements. ANALYSIS AND INTERPRETATION (ONLY FOR EMPLOYEES)1. EMPLOYEE EXPERIENCE BABASAB PATIL 52
  53. 53. To Determine the Effectiveness of Core Banking On Cash Flow PARTICULARS FREQUENCY PERCENTAGE A. SINCE 1 YEAR 1 10 B. SINCE 2-5 YEARS 2 20 C. MORE THAN 5 YEARS 7 70 TOTAL 10 100 80 70 60 PERCENTAGE 50 40 70 30 20 10 20 10 1 2 7 0 AR S S YE AR AR  1  YE YE CE   2- 5   5   IN E AN   S NC   TH .      SI E A      OR B.       M   C. PARTICULARSINTERPRETATION:The objective of the question was to know the employees experience in this bank. This willreflect the relationship with the bank.10% of the Employees have been working in this banksince 1 year, 20% of the Employees have been working in this bank since last 2-5 years and70% of the Employees have been working in this bank more than 5 years. BABASAB PATIL 53
  54. 54. To Determine the Effectiveness of Core Banking On Cash Flow2. SATISFACTION LEVEL. PARTICULARS FREQUENCY PERCENTAGE 1. VERY MUCH SATISFIED 6 60 2. SATISFIED 4 40 3. DELIGHTED - - TOTAL 10 100 70 60 PERCENTAGE 50 40 30 60 20 40 10 6 4 0 0 0 D       FIE E D  E D TI S FI HT IS IG SA AT EL H   S UC            D M 2. 3.  Y  ER        V 1.   PARTICULARSINTERPRETATION:The Objective of the question is to understand the satisfaction level of the employees. Mostof the employees are satisfied with the concept of core banking. The percentage of the BABASAB PATIL 54
  55. 55. To Determine the Effectiveness of Core Banking On Cash Flowsatisfaction is 60% and 40% respectively. It states that most of the employees are satisfied.The concept can be more effective if all the employees are fully satisfied with the concept.3. ANALYSIS ON BENEFIT OF CORE BANKING. PARTICULARS FREQUENCY PERCENTAGE 1.YES 10 100 2.NO - - TOTAL 10 100 120 100 PERCENTAGE 80 60 100 40 20 10 0 0 0 S O .YE 2. N     1            PARTICULARSINTERPRETATION: BABASAB PATIL 55
  56. 56. To Determine the Effectiveness of Core Banking On Cash FlowThe Objective of the question is to understand whether the customers of the bank are reallybenefited from the concept or not. The percentage of the response is 100%.It states that mostof the employees believe that the concept is really helping the customers of the bank.4. IMPACT ON CASH FLOW. PARTICULARS FREQUENCY PERCENTAGE 1.YES 8 80 2.NO 2 20 TOTAL 10 100 90 80 70 PERCENTAGE 60 50 40 80 30 20 10 20 8 2 0 ES .N O 1 .Y    2              PARTICULARSINTERPRETATION: BABASAB PATIL 56
  57. 57. To Determine the Effectiveness of Core Banking On Cash FlowThe Objective of the question was to know the effectiveness of core banking on cash flow.The percentage of the response is 80% and 20% respectively. It states that majority of theemployees believe that the concept of core banking solutions helps in increasing the cashflow. The percentage of the response can be increased if the problems are properly diagnosedwhich in turn helps in knowing the effectiveness of core banking on cash flow.5. ANALYSIS OF TIME & MONEY. PARTICULARS FREQUENCY PERCENTAGE 1.YES 9 90 2.NO 1 10 TOTAL 10 100 100 90 80 70 PERCENTAGE 60 50 90 40 30 20 10 10 9 1 0 ES NO 1 .Y  2.                PARTICULARSINTERPRETATION: BABASAB PATIL 57
  58. 58. To Determine the Effectiveness of Core Banking On Cash FlowThe Objective of the question was to know whether the concept of core banking saves time &money of the employees & customer of the bank. The percentage of the response is 90% and10% respectively. It states that majority of the employees believe that the concept of corebanking solutions saves time & money of the employees & customer of the bank .Hence it iseffective as far as time & money is concerned.6. COMPARISION WITH PREVIOUS CONCEPT. PARTICULARS FREQUENCY PERCENTAGE 1.IBAS - - 2.CORE BANKING 10 100 TOTAL 10 100 BABASAB PATIL 58
  59. 59. To Determine the Effectiveness of Core Banking On Cash Flow 20 20 18 16 14 GE 12 TA 10 10 EN PE RC 8 6 4 2 0 0 0 AS 1.IB G  K IN AN E B OR 2.C RS CU LA P ARTIINTERPRETATION:The Objective of the question was to know which of the concept is more easier and advantageone is the core banking concept and another is IBAS (which was used before corebanking) .The percentage of the response is 100% respectively. It states that majority of theemployees believe that the concept of core banking solutions is easier and advantage ascompared to IBAS.7. ANALYSIS OF TRAINING. PARTICULARS FREQUENCY PERCENTAGE 1.YES 10 100 2.NO 0 0 TOTAL 10 100 BABASAB PATIL 59
  60. 60. To Determine the Effectiveness of Core Banking On Cash Flow 120 100 80 ge 60 a nt e 100 rc pe 40 20 10 0 0 0        1.YES      2.NO lars p arti cuINTERPRETATION:Since the concept of core banking is new to the organization, the Objective of the questionwas to know whether bank/management has given any training for the employees for thesmooth operation of the work. The percentage of the response is 100% and 0% respectively.This clearly shows that bank/management given any training with respect to core banking forthe smooth operation of the work.8. EFFECTIVENESS OF TRAINING. PARTICULARS FREQUENCY PERCENTAGE 1.VERY MUCH SATISFIED 3 30 2. SATISFIED 7 70 3. NOT AT ALL SATISFIED 0 0 TOTAL 10 100 BABASAB PATIL 60
  61. 61. To Determine the Effectiveness of Core Banking On Cash Flow 80 70 60 50 a ge 40 nt 70 e rc 30 pe 20 30 10 7 3 0 0 0 1.VERY MUCH 2. SATISFIED 3. NOT AT ALL SATISFIED SATISFIED l ars pa rti cuINTERPRETATION:The Objective of the question was to know the effectiveness of the training program given bythe bank. This will help in analyzing the problem with the concept of core banking. Thepercentage of the response is 30% and 70% respectively.9. ANALYSIS OF DRAWBACK. BABASAB PATIL 61
  62. 62. To Determine the Effectiveness of Core Banking On Cash Flow PARTICULARS FREQUENCY PERCENTAGE 1.YES 6 60 2.NO 4 40 TOTAL 10 100 60 60 50 40 40 ge 30 a e nt rc pe 20 10 6 4 0 ul a rs        1.YES      2.NO parti cINTERPRETATION:The Objective of the question was to know the drawback of the concept if there are any. Thiswill help in analyzing the problem with the concept of core banking and coming out with aproblem solution. The percentage of the response is 60% and 40% respectively. This clearlyshows that some employees of the bank are not completely satisfied with the concept sincethey believe there are some drawbacks. Once the drawbacks are analyzed the concept can becalled as effective. BABASAB PATIL 62
  63. 63. To Determine the Effectiveness of Core Banking On Cash Flow 10. ANALYSIS OF PROBLEM. PARTICULARS FREQUENCY PERCENTAGE 1. LACK OF TRAINING 2 20 2. AWARENESS 8 80 3. TIME CONSUMING 0 0 TOTAL 10 100 80 80 70 60 50 age 40 nt e rc 30 pe 20 20 10 8 2 0 0 0 ul ars 1.  LA 2.  3.  p arti c CK  A W AR  TI ME  OF  CO   TR EN A IN ES NS S UM IN G IN G    INTERPRETATION:The Objective of the question was to know the problem that the employees of the bank arefacing with respect to core banking. This will help in analyzing the problem with the conceptof core banking and coming out with a problem solution. The percentage of the response is BABASAB PATIL 63

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