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In the present era of competition the use of computers and allied technologies has become
unavoidable and it has been well recognized that information system plays different roles in
different industries this papers makes an attempt to study the structure and use of MIS in a
financial organization i.e. bank where the day to day activities are only based on the MONEY
and obviously it is a sensitive area where there is a need of a strong system which is able to
flow the statistical and monetary requirements and information of day to day transaction into the
organization (banks).To provide management control over the day-to-day operations of banks
,the computer-aided management information system plays a vital role. It is extremely useful in
streamlining the databases and comparing and assessing the same for decision making as
regards to business and technical Requirements. Various modern management information
systems are available through different manufacturers that are made suitable for varying
number of operations, departments and units. This paper discusses management Information
system (MIS), benefits of computer aided MIS for banking industry, and so on. Brief details of
Banking MIS are also given.
PAPERS PREESENTED BY— ANAGHA P KULKARNI
MIS & It’s Impact on Banks

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Introduction
Management is defined as planning, organizing, directing and controlling the business
operations. Generally, we say that management is an art of getting the work done
through others. But here by using computer aids we can say that management is getting
easier by using the computers and the computer aided Tools and technique.
The Information (processed data) in the act of informing or the state of being informed.
information is a data that has been processed into a form i.e. meaningful to the recipient
and is of real perceived value in current or perspective decisions.
A system is a combination or arrangement of interrelated components working together
towards a common goal by accepting inputs and producing outputs in an organized
transformation process.(components::Inputprocessoutput)
Thus, MIS is a management information system as a term given to the discipline
focused on integration of computer system. To fulfill the aims and objectives of an
organization.
So the MIS can be defined as information system is an integrated user-machine system
for providing information to support the operations, management, analysis and decision
making functions in an organization. As we defined the system above it’s a technical
methodology which helps us to flow the data from its one node to another which is truly
necessary to making decisions at a corporate level .A manager’s effectiveness is largely
dependent on the existence of an equally effective Management information system. An
MIS provides information on a variety of different Organizational functions, allowing a
manager to plan, monitor, and evaluate operations and Performance. MIS outputs also
enable a manager to make strategic decisions and intelligent choices that shape an
organization’s future vision and mission. In the present era of competition the use of
computers and allied technologies has become unavoidable and it has been well
recognized that information system plays different roles in different industries this
papers makes an attempt to study the structure and use of MIS in a financial
organization i.e bank where the day to day activities are only based on the MONEY and
obviously it is a sensitive area where there is a need of a strong system which is able to
flow the statistical and monetary requirements and information of day to day transaction
into the organization (banks).

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The need for building MIS at the corporate level has increased considerably during the
last few years because of the following reasons:
1. Regulatory requirements indicated by the RBI for preparation of Off-site Monitoring
Surveillance (OSMOS) Reports on a regular basis in electronic format
2. Regulatory requirement of filing of statutory returns such as the one under Section 42 of
the Reserve Bank of India Act, 1934 for working out Cash Reserve Ratio (CRR) and
Statutory Liquidity Ratio (SLR) obligations in electronic format
3. Asset Liability Management (ALM) guidelines for banks being implemented by the RBI
w.e.f. April 1, 1999 with the stipulation that the banks should capture 100 percent of
their business through the ALM system by April 1, 2000.
4. Need for timely submission of Balance Sheets and Profit & Loss Accounts
5. Focus on transaction costing and a need for relating the service charges levied on the
customers to be based on cost of servicing
6. Need for Inter-Branch Reconciliation of Accounts within a definite time frame
7. Need to meet the stipulations made by the Central Vigilance Commission (CVC) to
computerize at least 70 percent of banking business by January 1, 2001.
8. Need to undertake risk management strategies and for this purpose build up
appropriate sets of data and market intelligence reports(Reference –online Axis bank
case study)

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We have observed the management information systems flow at
well known bank in khandesh region. How it helps to managers to take decisions at
various levels of strategic planning or monitoring or evaluation.
The MIS implemented in the BANK is JCORE system.
The DATA CENTRE DEPARTMENT is basically a Data Warehouse and after that it’s
obliviously the data mining technique adopted by the bank which helps MIS to work
smoothly.
The implications of adopting such a technology,
 All transactions captured at the branch level would get consolidated at the central
location. Such a central location could be called the Data Warehouse of the
concerned bank (DATA CENTER DEPARTMENT).
 For banks with large number of branches it may not be desirable to consolidate
the transaction details at one place only. It can be decentralized by locating the
services on regional basis.
 By way of data mining techniques, data available at various computer systems
can be accessed and by a combination of techniques like classification,
clustering, segmentation, association rules, sequencing, decision tree (described
in detail at Annexure-15), various ALM reports such as Statement of Structural
Liquidity, Statement of Interest Rate Sensitivity etc. or accounting reports like
Balance Sheet and Profit & Loss Account can be generated instantaneously for
any desired period/date.
 For eg: what DATA CENTER DEPARTMENT generally does is collection of data
from every branch of the bank consolidate it at a central location .i.e. Head
Office. the data specially the statistical one is integrated in banking section where
the statistical information is analyzed and helps managers to take the strategic
decisions, similarly the functional system which is integrated to the all computers
helps to adopt a new release (a new kind of technique e.g. Calculation one.)
 MIS connects the head quarter to that of various regional main branches. These
all branches are also integrated with each other’s so that it provides the facility of
Core-Banking. Core banking is a boon of the MIS .so that the ease of accessing
our bank accounts from where you are.
 Finally all the data flow from branches to regional central offices to head office of
the bank. So that there will be the coordination in all the activities done by the
bank at a macro level.

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THE FLOW OF INFORMATION IN A BANK AT A MACRO LEVEL
DHULE REGION BHUSAWAL
REGION
JALGAON REGION NASIK REGION
BRANCH MANAGERS
REGIONALMANAGERS
HEAD OFFICE
(AN MIS SYSTEM)
JCORE
Total data ishand
overto the
regional managers
by the branch
managers(using
system) andthen
the RM handsit
overto Head
Office (using
system.) itcalled
as a staring
system.due tothe
confidentialitythe
systemshould
openmanydoors
to handit overto
the next
stair(step)

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After analyzing the system we can say some of the benefits of MIS as implemented in a
bank. at various stairs and by integrating the whole system in a bank.
 Increase in accuracy, it can reduce the need of employees sometimes. This can result
into HR management.
 IT helps to TALLY the Daily position, which helps management to take further decisions
regarding to interest rates, or other things related
 At the time of Asset Liability Management daily position is automatically passes to the
Managers who is taking that main decision regarding to profit.
 It is easier to have an OFF-LINE surveillance. Instead of on-line one so data centre can
integrate or collect the data at one system. And they can control the system from only
one place. so that need for more staff is reduced. an expert can handle it from only one
office.
 Decentralization of authority is done for the ease of access. and so that the tasks
becomes easier, using a system at various levels.
 All these finally impacted on the management’s strategic decisions. I.e. it is proved that
effective MIS can flow through the system makes humans to depend on it’s accuracy
and reliability.
These are some of the benefits which a bank as a service industry is taking for further
final decision making at a strategic level.

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CONCLUSION
 An MIS helps a manager to collect and use information to make management
decisions in a timely manner. Managers also use MIS data to analyze, plan,
make decisions, take actions, and evaluate. An effective MIS provides accurate,
complete, and timely information. MIS formats should include feedback
mechanisms so that decisions made at all levels within the organization can be
shared with and enriched by stakeholder inputs. Such feedback is often
stimulated when data are analyzed and shared, and issues are highlighted. Staff
must be trained to use MIS outputs—and data generally—to support their work
and make it more efficient. Data must also be reported, shared, and used for
problem-solving and sustaining program.
 By a management point of view from last 4 decades there has been growth of
banking industry approximately 8000 bank branches in1969 to 73000.with the
entry of new banks, there is a intense competition for attracting and retaining the
customers. under these circumstances, the use of computers and allied
technologies has become inevitable to achieve satisfactory level of customer
service. computers are best suited to a situation in which large volume of
transactions have to be processed within short period of time .Banking as a
service Industry exactly fits into this description.
 The computerization of banks was firstly decided by the rangrajan
committee1983-84, under the guidance of that committee the fact becomes
stronger that banks are increasingly depending on the MIS for their day-to-day
operations and MIS helps banks to reduce cost and differentiate their product
from competitors product.
 Today MIS implemented in the banks are having a capability to alter core
organizational directions & reorient corporate strategy.
 The MIS are the SMART systems providing the accuracy, error free environment
which is necessary to banks.

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 By integrating all the data with different hierarchy it smoothens the flow of an
information for managers which is necessary to take the managerial and finally
the strategic decisions regarding the business and it’s profit.
Bibligraphy
 Management Information System And ERP (prof. monali kahchne)
 MIS for MBAs (prof. Ranjana Zinjore-)
 “Some empirical evidences on IS strategy alignment in
banking”Information and management ,vol30
 Cash ;McFarlan,W E;MCKenny ,J L and vital M R(1988)corporate
information systems management;Texts and cases.
 Role of IS in banking industry: A M Rawani & M P Gupta.
 MIS Usage at MFIs: A Pan-India Study ;Arjun Kashyap ;A Study by
Microfinance Insights.

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