A Sectorial Study on Banking information related to Finance, HR’s and

Marketing - With Special reference to

Vijaya Bank in Bhadravati Branch,

Mini Project Report Submitted to Kuvempu University, in partial fulfillment for the award of Post

Graduation Degree in

Master Business Administration

Submitted By

Ranganatha M.

Santosh C.M.

Vidyashree Chittur

II Semester M.B.A
Department of Institute of Management of Studies
Kuvempu University, Jnana Sahyadri,
Shankaraghatta

Under the Guidance of

Ms. Vidya R.

Department of Institute of Management Studies

Kuvempu University, Jnana Sahyadri,
Shankaraghatta
Department of Institute of Management Studies
Kuvempu University, Jnana Sahyadri,
Shankaraghatta- 577541
May 2011
 KUVEMPU UNIVERSITY
Department of Institute of Management Studies,

Jnana Sahyadri, Shankaraghatta – 577451

Certificate

This is to certify that Ranganatha M. , Santosh C.M. , Vidyashree Chittur is a bonafide

students of the Department of Institute of Management Studies, during the academic year 2010-11.

The sartorial report on “Banking information related to Finance, HR’s and Marketing.-

With Special reference to Vijaya Bank Badravati.” has been prepared by her in partial

fulfillment for the award of degree of Master of Business administration in 2 nd semester under the

guidance of Ms. Vidya R, Faculty member, Department of Institute of Management Studies, Kuvempu

University.

Date: Ms. Vidya R

Place: Shankaraghatta (Faculty member)

 DECLARATION

We do hereby declare that the sartorial work entitled “Banking information related to

Finance, HR’s and Marketing.-With Special reference to Vijaya Bank, Badravati” has

been carried out by me during the academic year 2010-11, in partial fulfillment of the requirement for

the programmed of Master of Business administration in 2nd semester, Kuvempu University, under the

guidance of Ms. Vidya R, Faculty member, Department of Institute of Management Studies, Kuvempu

University.

We further declare that this work has not been previously submitted by other or me for any

purpose either in this university or any other university.

Place:

Date: Shankaraghatta

Ranganatha M.

Santosh C.M.

Vidyashree Chittur.

2nd Semester MBA

Department of IMS
 ACKNOWLEDGEMENT

Motivation causing people to act in certain direction is very necessary for the success of

any task. “Behind every successful student there is a teacher”. I feel happy and proud to mention

those who motivated me and contributed directly or indirectly in making this project

successfully.

We take this opportunity to express my sincere thanks to all the faculties, Dept of

Institutes of Management studies, Kuvempu University, Jnana Sahyadri, and Shankaraghatta.

My sincere thanks to Dr. R Hiremani Naik, Chairman, Dept. of Institutes of Management

studies, Jnana Sahyadri, Kuvempu University, Shankaraghatta. We sartorial study guide for his

valuable guidance and constant encouragement throughout this study.

We would like to offer my whole hearted gratitude to all faculty members, of Dept of

Institutes of Management studies, Shankaraghatta, and other friends for being so encouraging,

supportive and for bearing throughout the study.

We would like to offer my sincere thanks to Branch Manager, Vijaya Bank , Badravati,

with timely co-operation my endeavor would not have been success.

We thank all my friends who directly or indirectly helped me in completion of this work

We wish to express by thanks to S.K. Tech, Shankaraghatta for their co-operation for

printing.

Date:

Place: Shankaraghatta

Ranganatha M.

Santosh C.M.

Vidyashree Chittur
 CONTENTS

I. CHAPTER

INTRODUCTION

II. CHAPTER

INDUSTRIAL PROFILE

III. CHAPTER

COMPANY PROFILE

IV. CHAPTER

BANKING STRATEGES

V. CHAPTER

CONCLUSION

BIBLIOGROPY
 1. CHAPTER

INTRODUCTION

ORIGIN OF WORLD ‘BANK’

INTRODUCTION

Banking in India originated in the first decade of the 18 th century with the general bank of India
coming into existence on 1786.The bank of Hindustan was reported to have continued till 1906 while the
other two failed in the meantime. The oldest bank existence in India “The state Bank of India” being
established as “Bank of Calcutta” in Calcutta in June 1806.A couple of decades later, foreign banks like
HSBC and credit Lyonnais, started their operation in Calcutta in the 1850s.The East India Company
established Bank of Bengal(1809) Bank of Bombay(1840) Bank of Madras(1843) as independent units
and called it as presidency bank. The imperial bank of India was established on 27 th January 1921.With
the passing of State Bank Of India Act in 1955,the undertaking of the imperial bank of India was taken
over by the newly constituted State Bank O f India.

DEFINITION

Sec 5(b) of the banking regulation Act,1949 defines banking as “accepting for the purpose of lending or
investment, of deposits of money from the public, repayable on demand or otherwise and withdrawal by
cheque, drafts, order or otherwise”.

Section (c) of the banking, regulation act 1949 defines banking company. ‘banking’ meance accepting for
the purpose of lending or investing of deposit of money from the public, repayable on demand or other
wise and with draw able by cheque, draft is know as banking

ORIGIN OF WORLD ‘BANK’

The world BANK has derived from the Latin word “BANQCUS” and “BAQNUE” which means
a ‘bench’. The early banker transacted their business at the benches in the market places. Banking is as
old as the civilization itself as early 2000B.C.The B abylonians had developed a system of banking. It is
said that the temple in Babylon were used as bank. Around the same time in the greece and also in Rome
there existed in the crudest form. The writing of Manu and Koutilya and the teaching of Christ contained
reference to banking. The book of Manu contain reference regarding deposits, pledge and policy of loans
and rate of interest. The ancient Hindu scriptures refer to the money lending activities in the Vedic period.
During the Mougal period, the indigenous bankers played very important role in lending money and
financial foreign trade and commerce. During the day of east India company, it was the turn of the agency
house to carry on the banking business.

The bank of Venice founded in Italy was the first public institution.”Merchant bankers, money
lenders and goldsmith were responsible for the development of modern banks. Modern banking system,
however came in to existence only after industrial revolution.

KINDS OF BANK

 Public sector banks

 Private sector banks
 Co-operative sector banks
 Development banks
 Foreign banks
 2. CHAPTER
INDUSTRIAL PROFILE

HISTORY OF THE INDUSTRY

MISSION OF VIJAYA BANK

OVER VIEW OF VIJAYA BANK

BRANCHS AND ATM SERVICES

HISTORY OF THE INDUSTRY

Vijaya Bank (Kannada: ವಿಜಯ ಬ್ಯಾಂಕ್), a medium sized bank with presence across India was founded on
October 23, 1931 [1]by A. B.Shetty and other enterprising farmers in Mangalore, Karnataka in India.. The
objective of the founders was essentially to promote banking habits, thrift and entrepreneurship among
the farming community of Dakshina Kannada district in Karnataka State. The bank became a scheduled
bank in 1958. Vijaya Bank steadily grew into a large All India bank, with nine smaller banks merging
with it from 1963-68. The credit for this merger as well as growth goes to  Mulki Sunder Ram Shetty,who
was then the Chief Executive of the bank. The bank was nationalised on April 15, 1980.

GROWTH & NATIONALISATION

Vijaya Bank grew steadily by merging nine smaller banks into it between 1963-68.Mulki Sunder Ram
Shetty, who was then the Chief Executive of the bank is largely credited with these mergers. The bank
was nationalised on April 15, 1980. this is the first bank to bring credit card facility in the banking
industry.
BRANCHES

In line with the prevailing trends, the bank has been giving greater thrust towards technological upgrading
of its operations. The bank has network of 1158 branches, 46 extension counters and 435 ATMs. (as of
March 31, 2010)

All 1158 branches, 46 extension counters, and 12 service branches are functioning on the CBS platform,
as well as at 758 centers, covering 100% of Bank's business.

The Bank has chosen Finacle from Infosys as centralised banking solution. In line with the prevailing
trends, the bank has been giving greater thrust towards technological upgrading of its operations.The bank
has network of 1160 branches, 43 Extension Counters and 450 ATMs. (as of May 21, 2010)

The bank has a network of 1158 branches, 46 extension counters and 435 ATMs. (as of March 31, 2010)
MISSION
“Our mission is to emerge as a prime national bank backed by modern technology meeting
customers‘ aspirations with professional banking services and sustained growth
contributing to national development

OVER VIEW OF VIJAYA BANK

 Vijaya bank has the highest number of branch in its home state Karnataka
 During the financial year 2010-11 so for the bank has opened 48 new branches
 In line with the prevailing heads the bank has been giving greater trust towards technological up
gradation of its operations

 The bank has network of 1149 branches, 43 extension counter and 376 ATMs as per 31-12-2009

 All 1149 branches 39 extension counter, 12 service branches are functioning on CBS plat form
and at 754 center coring of 100% banking business
 Realizing constantly evolving and diverse needs the bank has diversified too. Entering several
new area such as credit card, merchant banking, hire purchase and leading and electronic
remittance service
 BRANCHES & ATM SERVICES

In line with the prevailing trends, the bank has been giving greater thrust towards technological upgrading
of its operations. The bank has network of 1158 branches, 46 extension counters and 435 ATMs. (as of
March 31, 2010)

All 1158 branches, 46 extension counters, and 12 service branches are functioning on the CBS platform,
as well as at 758 centers, covering 100% of Bank's business.

The Bank has chosen Finacle from Infosys as centralised banking solution. In line with the prevailing
trends, the bank has been giving greater thrust towards technological upgrading of its operations.The bank
has network of 1160 branches, 43 Extension Counters and 450 ATMs. (as of May 21, 2010)

The bank has a network of 1158 branches, 46 extension counters and 435 ATMs. (as of March 31, 2010)
The driving for a behind vijaya bank having its 11688 strong dedicated workforce
 3. CHAPTER

COMPANY PROFILE

OBJECTIVES OF THE STUDY

SCOPE OF THE STUDY

LIMITATION OF THE STUDY

DATA COLLECTION

COMPANY PROFILE

VIJAYA BANK OFFERD SCHEMS

COMPANY PROFILE
 We visit the Vijay Bank in Badravati .The study is done to find the Marketing, Finance, and HR
activities of Vijay bank. The classification of its product profile and its competitiveness with comparison

to other bank was analyzed for. The balance sheet of the bank was analyzed and compared with the past
year balance sheets and ratio analysis was done to find the profitability, liquidity and leverage ratios. The

project and the survey were guided throughout by experts in specific areas.

The bank is much more customer service oriented and the workforce present is much impressive. The
product profile of the bank is also impressive where it is covering all the sections and places in the

society. The bank are also high on practicing corporate social responsibility. It was also seen that the bank
is very much concentrating in the print-advertisement section and also customer call service.

It is also the second bank in India to start with the mobile banking system, which has a good customer
response. The NPA ratio was fair in all the branches as consulted in the research and its increasing

number of branches across India was showing the progress of the bank.

OBJECTIVES OF THE STUDY:

 To study the service provided by the vijaya bank.

 To understand the efficiency of the vijaya bank.
 To know the overall efficiency of the vijaya Bank.
 To know their uniqueness or speciality in the banking filed of the vijaya bank

SCOPE OF THE STUDY:

The scope of the study was restricted to Bhadravati. The study was intended to collect
primary data directly from the Bank. from, the manager and employees of the bank
were contacted in their free time and interviewed to collect the information about the
bank.

Project report gives information in general, regarding customer service provided

by bank.

LIMITATION OF THE STUDY:

  The study is restricted only to the city limits of Bhadravathi.
 Due to time constraint project is restricted only towards service only.
 The market gives equal opportunity to other competitors .
 The Investigator could not cover all the branches, which are providing similar
Services.

DATA COLLECTION:
The primary data and secondary data have been collected through following
methods
 PRIMARY DATA

personal Interview:-For the purpose of collecting depth information is collected

by the manager and employees of the bank.
 SECONDARY DATA

The valuable information as been collected from the annual report of the bank
and from journals, textbook, vouchers and web site.

COMPANY PROFILE
Area : B H Road,Bhadravathi.

Address : P B No 315, 6Th Cross, B H Road, Bhadravathi, Karnataka

Pincode : 577303

City : Shimoga

State : Karnataka

BankCode: VIJB0001032

Website : www.vijaya bank.com

Phone no : 08282-266279

Branch manager : vasantha shetty

Asst branch manager: venugopala shetty

Employees 8 members

Customer more than 25000

Vijaya bank situated in above address and it was established in badravathi at 1980.
VIJAYA BANK OFFERD SCHEMS

 Retail Lending Schemes

o Vijaya Home Loan
o Vijaya Wheels
o V - Equip
o V - Rent
o V - Cash
o V- Rakshak
o V- Shikshak
o V- Swashakti
o Trade Finance
o Educational Loans
o Jewel Loans
o Loans to Transport Operators
 Loans Against Securities
 Non Fund Based Facilities
 Advances to Agriculture, SSIs and Others
 Government Sponsored Schemes
o Prime Minister's Rozgar Yojana
o Swarna Jayanti Gram Swarozgar Yojana
o Scheme For Liberation And Rehabilitation of Scavangers
o Golden Jubliee Rural Housing Scheme
o Differential Rate of Interest Scheme

DEPOSITS
  Savings Bank
 V Payroll Savings Bank Account
 V Genuth Savings Bank Account
 V Genuth Unnathi Recurring Deposits Bank Account
 V Platinum Savings Bank Account
 Vijaya Saral Savings
 Current Account
 VStar Savings Scheme
 Term Deposit
o Recurring Deposits
o VCash Certificate
o Vijayashree Units
o Fixed Deposit
o Jeevan Nidhi Deposit
o Capital Gains Scheme
o Vijaya Tax Savings Scheme

NRI Services   

 Deposits
 Loans 
 Remittances
 FOREX Branches
 FCNR(B) Branches
 Helpline for NRIs

Remittance Collection and Facilities

 FOREX Remittances
 Inland Remittances
 Electronic Remittance Services
 Inward / Outward Collection Instruments

Credit Cards
  Domestic Cards
 Global cards
 Debit cards

Forex

 FOREX market Information

 Card Rates
 Treasury

Other Services

 Merchant Banking
 Vijaya Raksha
 V-Arogya Bima Policy
 Credit Cards
 Mutual Funds
 Leasing
 Hiring
 Purchases
 4. CHAPTER

STRATEGEY

HUMAN RESOURE

MARKETING MANAGEMENT

FINANCIAL

CASH RESERVE RATIO

STATUTORY LIQUIDITY RATIO

Vijaya Bank's strategies yield results

By R. Chandrakanth

BANGALORE AUG. 12. Vijaya Bank has chalked out a plan to sell its Rs. 1,900 crore surplus SLR
securities and deploy the funds in retail lending, incremental return of which is 9 to 9.5 per cent, giving
the bank a good margin. This, among other strategies worked out by the bank management, is expected to
put the bank on a track of continuous growth.

The Varma Committee report that classified Vijaya Bank a couple of years ago on the threshold of going
"weak,'' is now a thing of the past. In a regime where the interest rates are looking southwards both on the
assets and liability sides, the bank, according to M. S. Kapoor, Chairman and Managing Director, has
been reducing its dependence on high cost funds and improving upon low cost deposits.

This has been bringing down the cost of funds. With the sale of surplus SLR securities, the bank will be
able to retain its net interest margins. "We have an unrealised gain of Rs. 950 crores in our investment
portfolio that will give us a measure of comfort even if the interest rate goes up marginally in future.''

The bank's strategy of increasing the retail lending portfolio has been paying dividends. The portfolio,
which constituted 8 per cent in 2001-02, had increased to 20 per cent of gross credit during 2000-03 and
expected to touch 30 per cent during the current year. The bank has projected a credit level of reRs.
10,000 crores for the current year.

On the recovery front, the bank's Roadshows have impacted the NPA levels substantially. The
Roadshows (wherein bank officials went to the residences of chronic defaulters for repayment) that
started during the second half of 2002-03 helped the bank recover Rs. 134 crores as on March 31, 2003
compared to Rs. 71 crores as on March 31, 2002.

Explaining the concept, Mr. Kapoor said the Roadshows brought in `social pressure' on the borrower.

Mr. Kapoor stated that the net NPA was coming down drastically and was down from 2.61 per cent in
March 2003 to 1.69 per cent as on June 30, 2003.

The bank, he said, was now in a strong financial position, getting ranked among the top six public sector
banks.

The operating profit increased from Rs. 253 crores to Rs. 432 crores and net profit from Rs. 130 crores to
Rs. 196 crores, registering levels of 71 per cnet and 50 per cent respectively during 2002-03.

This growth, he mentioned, was possible despite deferred VRS expenditure of Rs. 108 crores and
providing Rs. 10 crores for the proposed wage revision.

HUMAN RESOURE MANAGEMENT STRATEGY

The vijaya bank have 13 branch’s in shimoga district badravathi is also one of the main leading branch
and working staff is very effective because human resource strategy

RECRITUMENT POLICY

They have recruiting the required staff through conducting written test and oral test through the
issued by the government and they have some recruitment prosier.

 Any candidate can applied the application for job.

 Eligible candidates are the selected the job.
 Using roster come merit method
 Transfer win be made with in the district only not only other district banks .
 Through seniority will be considered for promotion easily employ get the promotion after
completion of 5 year experience for increment also considering the experience of the
employee.
 Employee are all get the equal rights.

THE SOME OF THE LEARNING OBJECTIVES OF H R M STRATEGIES

 Integrate your human resources strategy with your business strategy.

 Acquire a comprehensive framework for effective human resources strategy .
 Identify and build competitive organizational capabilities that are require for success.
 Learn to articulator the value of H R investment for any organization

HR IS A FUNDAMENTAL TO BUSINESS OR ANY SECTOR SUCH AS

 Importance of HR today business environment

 High value added HR agendas
 Linking HR practices to the competitive market place
 Adding short term and long term competitive value through the HR

THE LOGIC AND PROCESS FOR LINKING TO HR TO THE BANKING STRATEGY

 Trends and practices incorporate strategy formulation

 Best practices in building a business – driven HR strategy
 Measuring HR strategy value added

MARKETING STRATEGY OF VIJAYA BANK

 Advertising through news paper
  Three field officers are in vijaya bank
 Vijaya bank has own web site and doing the promotional activities through the site
 Arranging press conference for special issue

FINACIAL STRATEGY

 Providing kissan credit card facility

 Providing loan facility to formarce and commercial business
 Lending loan to bike purchasing for formarce and eligible account holders
 5% intrast loan providing formarce

CASH RESERVE RATIO

A cash reserve ratio or CRR is the percentage of bank reserves to deposits and notes. The cash
reserve ratio is also known as the cash asset ratio or liquidity ratio.Indias central bank ordered
commercial banks to hold a larger share of deposits in cash, and raised a key short-term lending
rate in a bid to curb high inflation that has stoked fears of overheating.The reserve ratio is
sometimes used.
AT PRESENT CRR IS : 6%

STATUTORY LIQUID RATIO

Statutory Liquidity Ratio : This is infact to protect us , RBI demands that there should be
certain amount that Bank needs to keep in the form of cash or or gold or govt. approved securities
(Bonds) and the ramining is only they have to give it to customers either as credit in any form , as
loan or mortgage or something .This will really help RBI to control the expansion of Bank
Credits.Now RBI has increased the rate by 1 percent , which means that the banks have to either
invest in gold or government securities , this is something like repayment for the money that RBI
let out to the banking system , This percentange comes to effect from from 7 November
2009.This means that the cash reserve in banks hand will go down by 1 percent or so .
 5. CHAPTER

 FINDINGS

 SUGGEONS

 CONCLUSION

 BIBLIOGROPY
 FINDINGS
Is not more concentration on agriculture people
The major findings were that the bank is lagging behind in video advertisements
and it has a tough competition from the corporation and syndicate bank.

Is not get more opportunities

SUGGESTION

To get more concentration on agriculture people

To get more opportunities

To Implement the Branch bank in Bhadravathi

CONCLUSION
 We did this project with a goal of understanding the complete information about VIJAYA
BANK, we the team mates strive hard to get the information regarding the bank in all our limits. The
project is highly knowledgeable it gave us a practical approach to our banking project. The concepts of
our banking syllabus are now clear with the help of this project. While doing the project we come across
different aspects of the bank like, their human resource, their fund, their marketing strategies, their loan
schemes, their vision and mission etc. these information’s are more practical than what we study in
classroom.

We are very great full to the manger of the bank. He is very helpful; he gave us a complete
guidance for our project. The staff of the bank also helped us to complete our project successfully. We
think we did not face any hurdles on the way of our project. We worked smartly, together to complete our
project. We also thank our faculty for guiding us to prepare our project. Without her help we think it is a
impossible task. Finally with our thanks we conclude our project.

BIBLIOGRAPHY
MAGAZINES OF BANKING

BANK VISIT

BANKING BOOKS

BANKING THEORIES AND PRACTICE : K.C SHEKHAR

MONEY AND BANKING : K.D BASAVA