INTERNSHIP PROJECT REPORT ON SOUTH INDIAN BANK LTD
A STUDY ON SOUTH INDAIN BANK LTD.docx (Size: 498.87 KB / Downloads: 56)
Banking in India originated in the last decades of the 18th century. The first banks were The General Bank of India, which started in 1786, and Bank of Hindustan, which started in 1790; both are now defunct. The oldest bank in existence in India is the State Bank of India, which originated in the Bank of Calcutta in June 1806, which almost immediately became the Bank of Bengal. This was one of the three presidency banks, the other two being the Bank of Bombay and the Bank of Madras, all three of which were established under charters from the British East India Company. For many years the Presidency banks acted as quasi-central banks, as did their successors. The three banks merged in 1921 to form the Imperial Bank of India, which, upon India's independence, became the State Bank of India in 1955.
IMPERATIVES FOR BANKING SECTOR
• Provide the new products demanded
• Create infrastructure for new channel access
• Provide financial advice.
• Build stronger relationships
• Leverage new technologies for customer value management
• Capture fully the banking potential in the mass affluent and upwards–Serve across product categories–Raise standards to match urban customers
• Create a new model to reach the unbanked–Savings as much as lending–New technology which does not need physical presence–Partnerships a must–New methods of managing channels
• Fund infrastructure growth pegged at excess of US$600 billion in the next 5 years through variety of instruments
• Provide cost efficient credit and services to the large and mid corporate sector–Credit at the right time in the right quantum–Trade intermediation services (factoring, forfaiting, structured finance)–Hedging services (interest rates, fx, commodities)–Investment/ Surplus management products (structured products)–Transaction intermediation services (local and global)
• Provide capital raising and advisory services–Equity raising–DCM as a viable substitute to credit–M&A/ PE advisory to large and mid corporate (help Indian corporate in their quest to go global)
• Go beyond credit–Transaction services–PE advisory–Corporate structuring–Relationship management
• Creation of a model which combines institutional skills and local touch points is critical
• Shift mindset from treating SME as priority sector to being ‘business’.
One of the earliest banks in South India,”South Indian Bank" came into being during the Swadeshi movement. The establishment of the bank was the fulfilment of the dreams of a group of enterprising men who joined together at Thrissur, a major town (now known as the Cultural Capital of Kerala), in the erstwhile State of Cochin to provide for the people a safe, efficient and service oriented repository of savings of the community on one hand and to free the business community from the clutches of greedy money lenders on the other by providing need based credit at reasonable rates of interest. Translating the vision of the founding fathers as its corporate mission, the bank has during its long sojourn been able to project itself as a vibrant, fast growing, service oriented and trend setting financial intermediary.
South Indian Bank Limited (SIB) is a private sector bank headquartered at Thrissur in Kerala, India. It is headed by Dr VA Joseph, Managing Director & CEO of the bank. South Indian Bank has 701 branches and 2 extension counters spread across more than 26 states and union territories in India. It has set up 665 ATMs all over India. In the year 2010-11, the bank is planning to add 60 more branches throughout India, thus allowing it to have a presence in all the states of India. The current growth plan of the bank is to establish 750 branches, 750 ATMs and 750 billion businesses by the end of financial year 2013. The bank offers major services in various segments- accounts and deposits, loans, mutual funds, insurance, money transfers and other value added services. The Kerala government had given permission to SIB to accept commercial taxes.
TECHNOLOGY AS THE KEY DRIVER OF BUSINESS
The Bank’s ambitious technology up-gradation project named SIBERTECH by introducing a Centralised Core Banking Solution Finacle in technology partnership with the Infosys Technologies Limited is complete and all the branches/offices all over the country have been linked to the Centralized Data Centre at Kochi and hence 100% of the Bank’s business is now absolutely on-line. The Disaster Recovery Facility is functioning at Bangalore. Technology is emerging as a key driver of Business in the banking and financial services industry. SIB’s “Core Banking” or “Centralized Banking” provides connectivity between branches and also helps to offer a large number of Value-added products, benefiting a large number of customers.
SIB’s Global ATM cum Debit Card can be used at over 8 lakhs ATMs and 120 lakh merchant establishments all over the world. The Global ATM cum Debit Card of South Indian Bank, which recently became the first Kerala based bank to have directly joined the National Financial Switch (NFS) of the institute for the development of research in Banking Technology (the technical arm of the Reserve Bank of India), can also be used at over 20,000 ATMs all over India. In 2004 SIB kicks off Real Time Gross Settlement (RTGS) operations. The Bank, as part of the global brand building exercise, has signed mega star padmashree Bharat Mammootty as its Global Brand Ambassador
CORPORATE SOCIAL RESPONSIBILITY (CSR)
Conscious of the corporate social responsibility, SIB has launched the Money Lender-Free Village a pilot project at Meloor in Trichur District of Kerala. The main objective of the project is replace the non-institutional, usurious, exploitative rural credit mechanism of private lending with lending through Self-Help Groups (SHGs) and direct lending by SIB. Under this initiative, SHGs act as extension of SIB to reach out to villages in even the remotest locations. This project though started very recently could garner acclaim from many quarters.
The bank has also commenced a rural empowerment initiative in association with the Kerala Agricultural University. While the bank would provide the necessary finance, the university would impart the requisite skills and technology required for the sustainable development of agriculture to the bank’s borrowers in the rural areas. The project would be executed through the NGO called, organization for Women Empowerment & Rural Development. The Bank has launched a new product, SIB JUNIOR to inculcate the savings habit among the children. To achieve this corporate objective, the bank is targeting schools and colleges in the country with this product.
NATURE OF THE ORGANIZATION
South Indian Bank is a private sector commercial bank. It seeks to serve its customers through its wide network of branches, extension counters and ATMs. It offers a wide variety of loans and deposits schemes. Non-resident Indians are also offered housing loans and loans against shares, securities and immovable property. NRI’s are also offered deposit facilities.
The Bank’s ambitious technology up-gradation project named SIBERTECH by introducing a Centralised Core Banking Solution. The E-banking services of bank consist of RTGS and NEFT Channels for transfer of funds and SMS alert banking services. Account holders who have enrolled themselves for these services can view their account balances and take printouts of their account statements, make online purchases, make E-payment of taxes and transfer funds between approved accounts without visiting the branches. It issues domestic and global credit cards. SIB is the first private sector bank from India to provide management support to an exchange house in the Middle East. This enables SIB to Provide top quality service, to NRIs looking at remittances to India, in a technology driven environment.