PROJECT REPORT

Submitted to
MAHATMAGANDHI UNIVERSITY, KOTTAYAM
In Partial Fulfillment the Requirements for the Award of

MASTERS DEGREE IN BUSINESS ADMINISTRATION

(2014-2016)
By
MATHEW NC
Roll No: B1544

RAJAGIRICOLLEGEOFSOCIALSCIENCES
RAJAGIRIP.O.
KOCHI683104
DECLARATION
I, Mathew NC Student of Rajagiri Business School, hereby declare that this report under the
guidance of Prof. Rakesh Krishnan, faculty, Rajagiri Business School is a bonafide record of the
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summer training done by me at Corporation Bank ltd, as a part of partial fulfillment of the award
of the degree, Post graduate diploma management from Rajagiri Business School, Cochin.
I, also state that this report has not been submitted to any other university or educational
institution for the award of any degree or diploma

. PLACE:

Kochi

Mathew NC

DATE:
[2]

[3]

Acknowledgement
A study is a collaborative endeavour, which is sustained not merely through the individual efforts
of the research scholar but by a lot many other persons involved directly or indirectly in bringing
into it to its completion. Even the ambience of the academic institution plays a vital role in
moulding its shape. Hence, once a research work attains its completion on acknowledgement of
gratitude those many people without whose work would have been inconceivable however
ritualistic it may appear, has a lot of significance.
I am greatly indebted to Dr.Binoy Joseph, the Principal, Rajagiri Business School for his
encouragement, guidance and assistance in availing this opportunity for doing the project . I would
like to express my gratitude to my guide Prof. Rakesh Krishnan, who followed my work with
unfailing interest and offered incisive commence and criticism. Through his scholarly guidance, I
could cope with all the inadequacies that came in the way.
I would also like to express my gratitude to Prof. Joji Alex N who helped me in getting some
direction and clarity to write the dissertation.
I am also thankful to Mr Tejpal Singh (Manager Corporation Bank Bharatpur) for his cooperation
in my work in his own way.
Last but not the least, I also wish to express my love to my parents my brother Mr James Anthony
and for their unconditional support and concern.

Mathew N C

[4]

Industry Analysis
Indian banking is the lifeline of the nation and its people. Banking has helped in developing the
vital sectors of the economy and usher in a new dawn of progress on the Indian horizon. The
sector has translated the hopes and aspirations of millions of people into reality. But to do so, it
has had to control miles and miles of difficult terrain, suffer the indignities of foreign rule and the
pangs of partition. Today, Indian banks can confidently compete with modern banks of the world.
Before the 20th century, usury, or lending money at a high rate of interest, was widely prevalent
in rural India. Entry of Joint stock banks and development of Cooperative movement have taken
over a good deal of business from the hands of the Indian money lender, who although still exist,
have lost his menacing teeth.
In the Indian Banking System, Cooperative banks exist side by side with commercial banks and
play a supplementary role in providing need-based finance, especially for agricultural and
agriculture-based operations including farming, cattle, milk, hatchery, personal finance etc. along
with some small industries and self-employment driven activities. Generally, co-operative banks
are governed by the respective co-operative acts of state governments. But, since banks began to
be regulated by the RBI after 1st March 1966, these banks are also regulated by the RBI after
amendment to the Banking Regulation Act 1949. The Reserve Bank is responsible for licensing of
banks and branches, and it also regulates credit limits to state co-operative banks on behalf of
primary co-operative banks for financing SSI units.
Banking in India originated in the first decade of 18th century with The General Bank of India
coming into existence in 1786. This was followed by Bank of Hindustan. Both these banks are
now defunct. After this, the Indian government established three presidency banks in India. The
first of three was the Bank of Bengal, which obtains charter in 1809, the other two presidency
bank, viz., the Bank of Bombay and the Bank of Madras, were established in 1840 and 1843,
respectively. The three presidency banks were subsequently amalgamated into the Imperial Bank
of India (IBI) under the Imperial Bank of India Act, 1920 which is now known as the State Bank
of India.
A couple of decades later, foreign banks like Credit Lyonnais started their Calcutta operations in
the 1850s. At that point of time, Calcutta was the most active trading port, mainly due to the trade
of the British Empire, and due to which banking activity took roots there and prospered. The first
fully Indian owned bank was the Allahabad Bank, which was established in 1865.
By the 1900s, the market expanded with the establishment of banks such as Punjab National
Bank, in 1895 in Lahore and Bank of India, in 1906, in Mumbai both of which were founded
under private ownership. The Reserve Bank of India formally took on the responsibility of
[5]

regulating the Indian banking sector from 1935. After Indias independence in 1947, the Reserve
Bank was nationalized and given broader powers.
As the banking institutions expand and become increasingly complex under the impact of
deregulation, innovation and technological up gradation, it is crucial to maintain balance between
efficiency and stability. During the last 30 years since nationalization tremendous changes have
taken place in the financial markets as well as in the banking industry due to financial sector
reforms. The banks have shed their traditional functions and have been innovating, improving and
coming out with new types of services to cater emerging needs of their customers. Banks have
been given greater freedom to frame their own policies. Rapid advancement of technology has
contributed to significant reduction in transaction costs, facilitated greater diversification of
portfolio and improvements in credit delivery of banks. Prudential norms, in line with
international standards, have been put in place for promoting and enhancing the efficiency of
banks. The process of institution building has been strengthened with several measures in the
areas of debt recovery, asset reconstruction and securitization, consolidation, convergence, mass
banking etc.
Despite this commendable progress, serious problem have emerged reflecting in a decline in
productivity and efficiency, and erosion of the profitability of the banking sector. There has been
deterioration in the quality of loan portfolio which, in turn, has come in the way of banks income
generation and enhancement of their capital funds. Inadequacy of capital has been accompanied
by inadequacy of loan loss provisions resulting into the adverse impact on the depositors and
investors confidence. The Government, therefore, set up Narasimham Committee to look into the
problems and recommend measures to improve the health of the financial system.
The acceptance of the Narasimham Committee recommendations by the Government has resulted
in transformation of hitherto highly regimented and over bureaucratized banking system into
market driven and extremely competitive one.
The massive and speedy expansion and diversification of banking has not been without its strains.
The banking industry is entering a new phase in which it will be facing increasing competition
from non-banks not only in the domestic market but in the international markets also. The
operational structure of banking in India is expected to undergo a profound change during the next
decade. With the emergence of new private banks, the private bank sector has become enriched
and diversified with focus spread to the wholesale as well as retail banking. The existing banks
have wide branch network and geographic spread, whereas the new private banks have the clout of
massive capital, lean personnel component, the expertise in developing sophisticated financial
products and use of state-of-the-art technology.
Gradual deregulation that is being ushered in while stimulating the competition would also
facilitate forging mutually beneficial relationships, which would ultimately enhance the quality
and content of banking. In the final phase, the banking system in India will give a good account of
itself only with the combined efforts of cooperative banks, regional rural banks and development
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banking institutions which are expected to provide an adequate number of effective retail outlets
to meet the emerging socio-economic challenges during the next two decades. The electronic age
has also affected the banking system, leading to very fast electronic fund transfer. However, the
development of electronic banking has also led to new areas of risk such as data security and
integrity requiring new techniques of risk management.
Cooperative (mutual) banks are an important part of many financial systems. In a number of
countries, they are among the largest financial institutions when considered as a group. Moreover,
the share of cooperative banks has been increasing in recent years; in the sample of banks in
advanced economies and emerging markets analyzed in this paper, the market share of cooperative
banks in terms of total banking sector assets increased from about 9 percent in mid- 1990s to
about 14 percent in 2004

Challenges Facing by Banking Industry:

The major challenge faced by the Indian Banking and Financial sector is that the level of financial
exclusion in India is alarming and there is an urgent need to find a plausible solution to the same.
The IBABCG survey of banks revealed that the level of confidence in finding profitable
solutions for financial inclusion is not very high. Financial inclusion has solely been the
responsibility of public banks up until now, but by using inclusive growth as one of the criteria for
new licences (new banks have to open 25 per cent of their branches in rural areas); the RBI will
have made the new private sector banks responsible as well. Currently, public sector banks have
more branches than any other bank group in the rural and semi-urban areas.
The banking and insurance industry is challenged by competitive pressures, changes in customer
loyalty, stringent regulatory environment and entry of new players, all of which are pressuring the
organizations to adopt new business models, streamline operations and improve processes.
The bank marketing is than an approach to market the services profitability. It is a device to
maintain commercial viability. The changing perception of bank marketing has made it a social
process. The significant properties of the holistic concept of management and marketing has made
bank marketing a device to establish a balance between the commercial and social considerations,
often considered to the be opposite of each other. A collaboration of two words banks and
marketing thus focuses our attention on the following:
* Bank marketing is a managerial approach to survive in highly competitive market as
well as reliable service delivery to target customers.
* It is a social process to sub serve social interests.
* It is a fair way of making profits
* It is an art to make possible performance-orientation.
* It is a professionally tested skill to excel competition.
[7]

Reserve Bank of India is the Central Bank of our country. It was established on 1 st April 1935
under the RBI Act of 1934. It holds the apex position in the banking structure. RBI performs
various developmental and promotional functions. It has given wide powers to supervise and
control the banking structure. It occupies the pivotal position in the monetary and banking
structure of the country. In many countries central bank is known by different names. The banking
system in India is classified in to three they are commercial banks, regional rural banks, and cooperative banks. Commercial banks mobilize savings of general public and make them available
to large and small industrial and trading units mainly for working capital requirements.
Commercial banks in India are largely Indian-public sector and private sector with a few foreign
banks. The public sector banks account for more than 92 percent of the entire banking business in
Indiaoccupying a dominant position in the commercial banking. The State Bank of India and its
7 associate banks along with another 19 banks are the public sector banks. Regional Rural Banks
(RRBs) were established in 1975 under the provisions of the Ordinance promulgated on the 26th
September 1975 and followed by Regional Rural Banks Act, 1976 with a view to develop the rural
economy and to create a supplementary channel to the 'Cooperative Credit Structure' with a view
to enlarge institutional credit for the rural and agriculture sector. Co-operative banking is retail and
commercial banking organized on a co-operative basis. Co-operative banking institutions take
deposits and lend money in most parts of the world. Co-operative banking, includes retail banking,
as carried out by credit unions, mutual savings and loan associations, building societies and cooperatives, as well as commercial banking services provided by manual organizations (such as cooperative federations) to co-operative businesses.
Corporation bank comes under the category of commercial bank and which is a public sector
bank and which is nationalized in 1980.Sbi and its associates are the key players in this segment
they have been considered as the key players in commercial banking system. The market share of
private sector banks are very less as compared to the market share of public sector banks the major
public sector banks in India are listed as following
S.No

Name of the Bank

State Bank of India

State Bank of Hyderabad

State Bank of Patiala

State Bank of Mysore

State Bank of Bikaner and Jaipur

State Bank of Travancore

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Allahabad Bank

Andhra Bank

Bank of Baroda

10

Bank of India

11

Bank of Maharashtra

12

Bharatiya Mahila Bank(BMB)

13

Canara Bank

14

Central Bank of India

15

Corporation Bank

16

Dena Bank

17

Indian Bank

18

Indian Overseas Bank

19

Oriental Bank of Commerce

20

Punjab and Sind Bank

21

Punjab National Bank

22

Syndicate Bank

23

UCO BankInda

24

United Bank of India

25

Union Bank of India

26

Vijaya Bank

27

IDBI Bank

.
These banks are the major players in the commercial banking system in India.

Pricing Strategy
Price being an integral part of the product and service - mix greatly contributes to the attainment
of organizational objectives, which in turn derives from the objectives set forth for an industry as a
whole. Focusing on gaining a competitive advantage, any management analyzes the situations, set
specific functional objectives and formulates strategic ways for achieving the goals. In the same
principles, to judge the capabilities of a bank, it is important for the authorities to study customers'
demand, market competition and then determine targets and provide a product or service package
possessing superior value in the market. The bank management should develop business plans,
and in particular the pricing plans, which should protect and ensure the integrity of the bank and
[9]

its customers through consistent relationship. Especially with regard to pricing, some tactics,
which are extremely profitable or advantageous in the short run, should be discarded in favor of
long-term customer relationships. The common practice of raising prices in the period of short
supply of money should be replaced by a pricing system aimed at customers' loyalty. Otherwise,
the implications would be severe in the long run and customers will be lost from the bank with
replacement costs running five times more than the retention cost. General pricing structure for
banking products and services prevail throughout the banking industry, with small or no
differentials initiated by any individual bank. Corporation bank considers Pricing Perception Index
(PPI) in determining pricing strategy. PPI provides details about satisfaction of customers about
various products, its very important in determining price of product. Corporation bank uses
internal analysis and monitoring of competitors for determining price of their product. It uses all
the possibilities of Management Information Sysytem (MIS) in order to set the price.
In Corporation Bank, the pricing strategy is determined on the basis of following factors.
1- Return On Equity (ROE)
2- Return On Capital (ROC)
3- Return On Assets (ROA)
4- Risk Analysis
5- Provision for Bad debts
Return On Equity
Return on equity (ROE) measures the rate of return for ownership interest (shareholders' equity)
of common stock owners. It measures the efficiency of a firm at generating profits from each unit
of shareholder equity, also known as net assets or assets minus liabilities. Return on equity is the
major factor in determining price for their services. ROE will determine the share price , so it is
very important and Corporation Bank emphasis on this to determine price.

Return On Capital

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Return on capital (ROC) is a ratio used in finance, valuation, and accounting. The ratio is
estimated by dividing the after-tax operating income (NOPAT) by the book value of invested
capital. When the return on capital is greater than the cost of capital (usually measured as the
weighted average cost of capital), the company is creating value; when it is less than the cost of
capital, and value is destroyed. Corporation bank uses ROE as a major factor in determining the
pricing strategy for its product and services.
Return On Assets (ROA)
The return on assets (ROA) shows the percentage of how profitable a company's assets are in
generating revenue. This number tells us what the company can do with what it has, i.e. how many
rupees of earnings it derives from each rupee of assets it controls. It's a useful number for
comparing competing companies in the same industry. The number will vary widely across
different industries. Return on assets gives an indication of the capital intensity of the company,
which will depend on the industry; companies that require large initial investments will generally
have lower return on assets. ROAs over 5% are generally considered good. ROA is a major factor
in determining the pricing strategy of corporation bank.
Risk Analysis
Risk Analysis is the study of the underlying uncertainty of a given course of action. Risk analysis
refers to the uncertainty of forecasted future cash flows streams, variance of portfolio/stock
returns, statistical analysis to determine the probability of a project's success or failure, and
possible future economic states. Risk analysts often work in tandem with forecasting professionals
to minimize future negative unforeseen effects.
Corporation Bank uses risk analysis in determining its pricing strategy. Risk analysis is huge
process which involves collecting information and analyzing and rank the projects based on it.
Provision for Bad Debts
The provision for bad debts might refer to the balance sheet account also known as the Allowance
for Bad Debts, Allowance for Doubtful Accounts, or Allowance for Uncollectible Accounts. In
this case Provision for Bad Debts is a contra asset account (an asset account with a credit balance).
It is used along with the account, Accounts Receivable in order to report the net realizable value of
the accounts receivable. Corporation bank also looks in to it in determining price for various
products and services they provide.
[11]

Nature of Supply and Demand

Each specific good or service will have its own supply and demand patterns based on price, utility
and personal preference. If people demand a good and are willing to pay more for it, producers
will add to the supply. As the supply increases, the price will fall given the same level of demand.
Ideally, markets will reach a point of equilibrium where the supply equals the demand (no excess
supply and no shortages) for a given price point; at this point, consumer utility and producer
profits are maximized. Corporation Bank uses demand forecasting as an important method to
determine the demand and supply. It also considers industrial analysis while determing supply and
demand, they always look into their previous records in determing the fluctuation in demand and
supply. Corporation bank uses information technology for market analysis and also use it as a tool
for demand forecasting. Market Analysis and Demand Forecasting are utilized by the corporation
bank for deteermining demand and supply of their products and services. As far, information
technology is considered as an important resource by the corporation bank. In designing a product
or service, corporation bank considers two important factors
1- It should be cost saving to the bank.
2- It should be contented for the consumers.
It is always tried by the corporation bank to bring in innovative services to have advantage over
the competitors and to secure a good position in the market.

Inter firm behavior and its implications in corporation bank.

Corporation bank has a unambiguous organizational structure. They have a precise and well
defined heirarchy, which has been described in the book Code of Conduct. Every employee in
the organisation should behave according to that. This well defined organisational structure helps
corporation bank to build discipline and to achieve higher working efficiency. Corporation Bank
trusts in an efiicient and clearcut organisational structure for the well being of the organisaton. The
behaviour of the personnel towards the consumers has been a great factor in determining the
business of the bank. The Corporation Bank provides training for the workforce regarding
behaviour towards consumers.The centralized organisational structure of corporation bank helps

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in fast execution of decisions taken by the uppermost management which helps to improve the
overall efficiency of the organisation.

Potential of Indian banking industry

The banking sector in India is on a growing trend. It has vastly benefitted from the surge in
disposable income of individuals in the country. There has also been a noticeable upsurge in
transactions through ATMs, and also internet and mobile banking. Consequently, the different
banks, namely public, private and foreign banks have invested considerably to increase their
banking network and thus, their customer reach.
The banking industry in India has the potential to become the fifth largest banking industry in the
world by 2020 and third largest by 2025 according to a KPMG-CII report. Over the next decade,
the banking sector is projected to create up to two million new jobs, driven by the efforts of the
RBI and the Government of India to integrate financial services into rural areas. Also, the
traditional way of operations will slowly give way to modern technology.
The Indian banking sector is fragmented, with 46 commercial banks jostling for business with
dozens of foreign banks as well as rural and co-operative lenders. State banks control 80 percent
of the market, leaving relatively small shares for private rivals.
Banks have opened 7.73 crore accounts under the Pradhan Mantri Jan Dhan Yojana (PMJDY) till
November 19, according to Ms Snehlata Shrivastava, Additional Secretary, Department of
Financial Services, Ministry of Finance, Government of India. Of the 77.3 million accounts,
public sector banks have opened 62.1 million accounts with a total balance of Rs 4,946.03 crore
(US$ 802.64 million), and have distributed RuPay debit cards to around 43 million accounts.
Total banking sector credit is anticipated to grow at a CAGR of 18.1 per cent to reach US$ 2.4
trillion by 2017. The totals banking assets in India touched US$ 1.8 trillion in FY13 and are
anticipated to cross US$ 28.5 trillion in FY25
With the advancements in technology, mobile and internet banking services have come to the fore.
Banks in India are focusing more and more to provide better services to their clients and have also
started upgrading their technology infrastructure, which can help improve customer experience as
well as give banks a competitive edge.

History of Corporation Bank

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Corporation Bank, the oldest banking institution in the erstwhile undivided South Canara District
of the Madras Presidency and one of the oldest banks in India, was founded in 12 March 1906 in
the Temple Town of Udupi, by a small group of philanthropists led by Khan Bahadur Haji Abdulla
Haji Kasim Saheb Bahadur. The need to start this bank was felt because there was no such facility
at Udupi, an important trading centre next to Mangalore in South Canara district. The indigenous
banking was largely in the hands of a few rich private individuals and something had to be done to
provide relief to the common man from the clutches of the money lenders who held full sway. The
first branch of a modern bank established in the district was the Bank of Madras, one of the
three Presidency Banks, which set up its office in Mangalore in 1868 largely to cater to the
business needs of a few British firms dealing in export of plantation products. Its agent used to
visit Udupi once a fortnight or so, to do banking. Money remittances had to be made only
through postal medium.
To overcome these drawbacks and also to provide banking facilities for Udupi in particular and
the district in general, a cosmopolitan group ofphilanthropists led by Haji Abdulla Saheb made a
bold venture to start this institution. What inspired the founding fathers was the fervour of
"Swadeshism". For promoting the bank, the Founder-President made an appeal saying, " The
primary object in forming the Corporation' is not only to cultivate habits of thrift amongst all
classes of people, without distinction of caste or creed, but also habits of co-operation amongst all
classes. This is swadeshism', pure and simple and every lover of the country is expected to come
forward and co-operate in achieving the end in view." They rightly defined Swadeshism as
institution-building to aid economic activity through co-operation of all, shorn of distinction of
caste and creed.
The Canara Banking Corporation (Udupi) Limited, as the institution was called then, started
functioning as a Nidhi with a humble beginning. The initial capital was 5,000/- and at the end of
the first day, its resources stood at 38 rupees - 13 annas and 2 pies.
The setting up of the Canara Banking Corporation Ltd. seems to have given a fillip to co-operative
banking and also to regular banking elsewhere in the district. Between 1909 and 1917, six cooperative banks came into being and during the decade immediately after the First World
War (191418) South Canara gave birth to as many as eight banks. It is to the credit of this bank
that despite two world wars, economic depression and stiff competition, the bank not only quite
survived, but also made satisfactory progress.

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Having been started at Udupi, the bank first branched out by opening a branch at Kundapur in
1923. The second branch of the bank was opened in Mangalore at Car Street in 1926. The bank
stepped into Kodagu district in 1934 by opening its seventh branch in Madikeri. In 1937, the bank
was included in the second schedule of Reserve Bank of IndiaAct, 1934. In 1939, the bank's name
changed from "Canara Banking Corporation (Udupi) Ltd." to "Canara Banking Corporation Ltd."
The Bank graduated into a regional bank in 1945 when the total number of its branches stood at
28. In 1961, it took over Bank of Citizens of Belgaum. In the same year, the bank's administration
office shifted from Udupi to Mangalore.
The second change in the name of the bank occurred in 1972, from Canara Banking
Corporation Ltd. to Corporation Bank Limited. The bank was nationalised in 1980 along with
5 other private sector banks. After nationalisation, the pace of growth of the bank accelerated and
it made all-round progress. Started as a common man's bank, it changed with the times to meet the
aspirations of the people but never swerved from its motto- Sarve Janah Sukhino
Bhavantu meaning Prosperity for All. It endeavoured and succeeded in striking a right balance
between traditional values and innovative approach, personalised service and professional outlook
and commercial considerations and public concern. One of the unique achievements of the bank is
that it has been paying dividend continuously for the last 98 years since its inception. Today, with
the most modern technology-driven products and services and nationwide branches & ATMs,
Corporation Bank stands tall among the public sector banks in India and is hailed as one among
the well-managed public sector banks with excellent track record in all the key parameters of
banking. The bank has the second largest ATM network in the public sector.
Corporation Bank had the honour of playing host to many a distinguished personality. During the
bank's Platinum Jubilee celebrations in 1976, the new administrative office building
at Pandeshwar Mangalore was opened by Sri B.D.Jatti, the then-Vice-President of India.
The bronze statue of Pandit Jawaharlal Nehru installed by the bank at the Traffic Island in front of
its Corporate Office at Pandeshwar Mangalore, was unveiled by Mr. Justice E.S. Venkataramaiah,
the then Chief Justice of India. In 1992, R. Venkataraman, the then-President of India, visited the
bank to inaugurate its 85th anniversary celebrations and 60th anniversary of the bank's
commencement of operation in Tamil Nadu state. In 1996, Mr. Justice A. M. Ahmadi, the thenChief Justice of India, visited the bank to deliver the 90th year commemorative lecture.
Corporation Bank House, the new premises of the bank's Car Street Mangalore branch, was
inaugurated by Dr. Manmohan Singh, who was then the Union Finance Minister. Dr. C.
Rangarajan, the then Governor of Reserve Bank of India, launched the prestigious deposit
[15]

product Corp Classic during his visit to the bank's corporate office in 1997. The bank's new
Millennium Building was inaugurated by Union Minister of State for Finance Vikhe Patil in 2000.
In the same year, Union Finance Minister Yashwant Sinha launched the bank's CorpFast product
at the Corporate Office.
Corporation Bank was the first public sector bank, other than State Bank of India ascociates, to
achieve 100% CORPORATION BANKS (Core Banking Solutions) developed and implemented
by Laser Soft Info systems Limited, Chennai.
110 years of banking
Corporation Bank completed hundred and ten years of existence on 12 March 2015. On the
occasion of 107th Foundation Day celebrations held at TMA Pai Hall in Mangalore, five eminent
personalities who made immense contributions to the society were honoured by the bank. They
include, Dr. B.M. Hegde, eminent physician, Dr. B. Ramana Rao, eminent cardiologist, Mrs. Ela
Bhatt, social entrepreneur and founder of SEWA, Dr. B.R. Shetty, entrepreneur and Dr. Kadri
Gopalnath, eminent saxophonist.
A new application for internet banking in iPad was launched on this occasion. A new caller tune
for the bank for Bank's mobile/landline phones was also inaugurated in the function.
The Centenary celebrations were launched by Shri V. Leeladhar, Deputy Governor, Reserve
Bank of India with the Bank's Foundation Day lecture on 12 March 2005.
As a part of the Bank's centenary celebrations, a number of programmes and projects were
planned and executed. As a first step, the Bank has launched the Corp Kissan Card -debit card tied
up with VISA international, to enable the farmers make timely purchases for agricultural
operations. At Yeshwantpur-Malur in Kolar District on 13 March 2005. A modern public library
was dedicated to the citizens of Mangalore in DK District, the birthplace of the Bank by Shri P.
Chidambaram, Honorable Union Finance Minister on 2 March 2006. The library building also
houses a Numismatic Museum and a multipurpose hall for intellectual activities. The Bank has
also set up libraries in 25 villages and given away scholarship to 100 meritorious students of such
villages for the pursuit of their higher education. Such libraries will be set up in 75 more villages
in a phased manner. Corporation Bank - A Corporate Journey, the history of the Bank and Haji
Abdullah Saheb a biography of the Bank's Founder President have been published on the occasion
of the valedictory function of the Bank's Centenary Celebrations
[16]

Corporate Vision
"The Most Preferred Bank with Global Standards"

Corporate Mission

To become a provider of World - Class Financial Services

To meet Customer expectations through Innovation and Technological Initiatives

To maintain leadership in inclusive banking

To enhance stakeholders' value

To fulfill national and social obligations

To create an environment, intellectually satisfying and professionally rewarding to the

employees

To emerge as a role model for ethical values and Good Corporate Governance

Corporate office, Headquarters

Corporate office of corporation bank has been situated at Mangaladevi Temple Road, Pandeswar,
Manglore, Karnataka.The bank has pan India presence with 8000 functional units comprising
3200 branches, more than 3200 ATM centers. 4,000 branchless banking units as of 30 January
2015.
The initial capital of Corporation bank was 5,000/- and at the end of the first day, its resources
stood at 38 rupees - 13 annas and 2 pies. Corporation bank use equity capital as the only source of
acquring capital. Corporation bank have an authorized capital of 3000 crores and which have an
issued capital of 167.54 croresand which also have a paid up capital of 167.54 crores. The
corporation bank has 167541877 shares and the face value is 10 rupees.
The total business of the Corporation bank during the financial year 2013-14 has been
3,01,375 crore (equivalent to 3.3 trillion or US$52 billion in 2015), as of 31 December 2013. The
total deposits have grown to 1,77,845 crore (equivalent to 2.0 trillion or US$31 billion in 2015).
Total income of the bank reached 16,942.02 crore (equivalent to 190 billion or US$3.0 billion in
[17]

2015) during this period. Operating profit of the bank reached 2,402.85 crore (equivalent to
27 billion or US$420 million in 2015) and net profit 520.15 crore (equivalent to 577 crore or
US$91 million in 2015).

Ratios
Key ratios regarding Corporation bank are described as following
Capital adequacy ratio 12.21%
Return on average assets 0 .29%
Return on equity 5.72 %
Earnings per share 35.75Rs
Non-interest income to total income 8.40%
Gross NPA to Gross advances 3.42%
Net NPA to Net advances 2.32%
Dividend per share 4.50Rs
These are the key ratios of Corporation bank if we look in to capital adequacy ratio we can
observe a slight increase as compare to that of previous year. This is not a good sign for the
depositors now the bank taking necessary actions to overcome this issue. Return on average assets
is decreasing as compare to previous years. It is not a good sign for the firm and it indicates that
the firm generates less profit using its limited resources. The firm is trying to overcome this issue.
Return on equity is also decreasing as compare to the previous years. The firm is trying to improve
its ROE in order to attract more investors. Earnings per share is also diminishing it is not a good
sign for the organization now the organization introduced new plans in order solve this issue. Noninterest income is considered as the one of the important source of income for banks. Non-interest
income to total income ratio is also decreasing which is also not a good sign for the organization.
It is diminishing at a constant rate as compare to the previous years. In case of Gross NPA to gross
advances we can observe an increase as compare to the previous years which is almost doubled as
compare to the previous year. Now a days all nationalized banks facing the problem of increase in
[18]

NPA corporation bank have been introduced new programs in order to reduce NPA. Net NPA to
net advances is also showing an increasing trend.

Organization Structure
Corporation bank follows a mix of centralized organizational structure its starts from the CEO and
ends with lower level worker. A clear cut organizational hierarchy is present in Corporation bank.
It has some advantages and some disadvantages they are described as following. Centralized
organizational structure provides greater degree of control as compare to decentralized structure.
But the authority is centralized every employees should do their job as determined. The major
advantage associated with centralized organizational structure is that decision making and its
implementation. In a centralized structure decisions are taken by the senior managers and they
consider organization as a whole and which will improve the quality of the decisions made. In a
centralized structure a clear cut organizational hierarchy is present which helps to improve the
implementation of the decisions taken. In Corporation bank senior managers hold more authority
and which helps to increase more control in the organization. One of the major advantages of
centralized organization structure is implementation of decisions; in corporation bank the top
management can implement decisions very efficiently and effectively. Centralized organization
structure helped corporation bank a lot in improving the efficiency of the organization. One of the
important advantages of the centralized organizational structure is that it brings uniformity in
action. Uniformity in action is established throughout the organization because of central
administrative control. The same executive supervises the work and same type of office
equipments are used which ensure uniform performance of activities. Centralized organization
structure permits flexibility and adaptability of the organization to the changed circumstances.
Occasional pressure of extra clerical work is handled with the existing staff. Another important
advantage associated with centralized organization structure is that which will help to increase the
quality of work because of standardized procedure, better supervision. In Corporation bank
employees have their rights they can protest against unfriendly practices of the top management.
In corporation bank trade unions are very strong and they should stand for the well being of the
employees and bank. In Corporation bank branch manager can do certain functions according to
his discretions which indicate that there is some room for decentralization too. One of the major
problems associated with centralized organization structure is that there is no subordinate's
initiative in work because they are required to do such works which they were asked for. Workers
work like machine which results in no involvement in work and absence of zeal. All these factors
stand as barrier in the development of loyalty to work. Centralization hampers the growth and
[19]

development of subordinates as they are not given any authority to take independent decisions.
The sense of Oneness disappears from the subordinates and it is considered as an important
disadvantage of centralization.
Corporation bank has an employee turnover of 14803 in which 2908 are officers and 11861 are
clerks. Corporation bank recruit employees through two kind of practices; based on the test
conducted by IBPS and direct recruitment. Efficiency of the employees is considered as the most
important strength of Corporation bank; because the number employees are less than required on
the contrary still the personnel can manage the functions. The Work force is highly efficient in
Corporation bank and it is the backbone of the bank. Performance appraisal is very important for
every organization which will help to improve the efficiency of the organization. The appraisal
process helps in human resource planning (HRP). Accurate and current appraisal data regarding
certain employees helps the management in taking decisions for future employment. Without the
knowledge of who is capable of being promoted, demoted, transferred, laid off or terminated,
management

cannot

make

employment

plans

for

the

future.

Performance appraisal is a way of finding out which employee should be given a promotion. The
information obtained through the performance appraisal process can be used to find out whether
an employee requires additional training and development. Deficiencies in performance may be
due to inadequate knowledge or skills. Past appraisals, together with other background data, will
enable management to select proper persons for promotion.

Appraisal policy used by the

Corporation bank is transparent in nature. Performance appraisal is based on two factors they are;
personal performance and branch performance. Equal weightage is allocated for both factors
which means 50% of the appraisal is based on personal performance and 50% is based on branch
performance. In corporation bank a board is in charge of measuring performance of the employee
and which will be headed with a senior manager. In every year the score obtained by each
employee is disclosed to themselves, if they have any complaints about their score they can
complain to the appellate authority. The appraisal policy adopted by the Corporation bank is
transparent and it is very efficient in nature. In corporation bank based on performance they get
their remarks for attaining promotions they have to face other criteria like test, interview etc and
promotion should be given on the basis of that. Performance appraisal also plays an important role
in the process of promotion.

Products and Services

The various products and services offered by corporation bank are described as following:
[20]

1. Personal Products
(a)

(b)

(c)

Savings Account

Regular Savings Account

Corp Classic Savings Account

Corp New Gen

Corp Pragati Account

Corp Saral Saving Account

Corp Signature Account

Corp Super Saving Account

Corp Mahila Power Account

Corp Arambh Saving Account

Corp Saral Plus Savings Account

Deposits

Kshemanidhi Cash Certificate

Fixed Deposit

Moneyflex Deposit

Recurring Deposit

Corp Recur Deposit

Corp Tax Saver

Loans
[21]

(d)

(f)

Corp Home

Corp Vehicle

Corp Mortgage

Corp Rental

Corp Vyapar

Corp Tutor Fee

Corp Shelter

Corp Doctor Plus

Corp Apni Dukaan

Corp Site (For Application Money)

FOREX

Travel Currency

Outward Remmitances

FOREX Branch

List Of Branches Accepting FCNR Deposits

Foreign Currency Cash

Money Transfer Made Easy

Express Money

Investments

Application Supported By Blocked Amount (ASBA) For IPOs & Rights Issues
[22]

(g)

(h)

(i)

Mutual Funds

Online Trading

Inflation Indexed National Saving Securities- Cumulative(IINSS-C)

Services

Locker Facility

Tax Payments

E-Payements

Depository Services

Bills and Shopping

E-Stamping

Recharge Mobile/DTH

Online Donation

Money Gram

Express Money

Remittance

NEFT & RTGS

Xpress Money

MoneyGram

EzRemit

Tax and Pensions

[23]

(j)

2-

Tax payments

Pension payments

Public Provident fund schemes

Senior citizen saving scheme

Insurarance

Life insurance

General insurance

Group insurance

Corporate
(a)

Current Accounts

Current account

Corp club

Corp privilege

Global current account

(b)

Cash Management

(c)

Financing

(d)

Working Capital

Project financing

Term finance

Forex
[24]

Forex

Gold Card Scheme for exporter

3- NRI
(a)

(b)

(c)

Savings Account

NRE savings account

NRO savings account

Deposits

NRO deposit

FCNR deposit

Investment

Corp bank pure gold

Mutual funds

Public provident fund

Medical insurance

Life insurance

Demat facility

Senior citizens saving scheme

ASBA

(d) Loans
[25]

NRI Home Loans

Loan Against Property

(e) Remittance

Remittance

Wire transfer

Corp speed remittance

Rupee draft

Money gram

EzRemittance

NRI Remittance

4- Priority
(a) Agriculture

Corp Kisan Vehicle Loan Yojana

Corp Kisan Farm Mechanization Scheme

Corp Kisan Credit Crad Scheme

Corp Kisan Loan Scheme

Scheme for Reimbursement of Development Expenditure

Scheme for Financing Farmers

CGBY

Corp Agricultural Produce Loan

[26]

Scheme for Financing Farmers for Purchase of Agriculture Land

5- E-Banking
(a) Cards

Debit Card

Corpbank Prepaid gift cards

Travel Cards

Point of Sales

RuPay Debit Cards

(b) ATM
(c) Internet Banking
(d) Mobile Banking
(e) SMS Banking
(f) Mobile Recharge
(g) Missed Call Enquiry

Customers
Corporation bank is a nationalized bank and its target market lies within India. Corporation bank
offers products and services to different classes of consumers. It offers a series of personal
products for persons who reside in India, non residential Indians, corporate sector as well as
agriculture sector. Corporation bank considers customers as the back bone of the organisation and
which trying to provide products which will meet the requirements of customers. Corporation
bank offers different products for different customers for example savings scheme provided
personal and NRI will differ and products offered to corporate sector will differ from agricultural
sector. Corporation bank provides more convenient products for the well being of the customers in
the organisation. The operating area of corporation bank is within India but it has some branches
outside India in order to serve the NRI customers. Corporation bank have an advantage over other
nationalized banks in case of technology, corporation bank incorporate favorable technological
innovations in their products and services which will benefit the customers.
[27]

Functional departments
Functional departments of corporation bank are administration, operations, marketing, HR
(personnel administration). Administration is an important area for a bank is concerned which
deals with the overall administration of all branches of the bank. General administration of the
bank is the major role of the administration department. Administration department is responsible
the day to day running of the organization. Operations department is considered as the key
departments in case of corporation bank major sub units under operations department are deposits,
IT, loans and advances, etc. the major function of operations department is designing and
management of products services and processes. Operations department evaluates and allocates
resources to effectively deliver products and services. Operations department is responsible for the
designing of various products and services according to the requirements of the customers. The
functions performed by the operations department make it as a key functional department.
Products and services are the sources of income in case of an organization, operations department
designs products and services and also monitor the working of it. Another important department is
marketing department is responsible increasing the revenue and market share of the organization.
To reach out information about products and services to customers is also the function of
marketing department. Marketing department and operations department are closely attached each
other. Marketing departments perform several functions in order to increase the revenue and
market share of the organization. Personnel administration (HR) comes under the administration
department which is responsible for human resource management in the organization. It is
responsible for recruitment, training, promotions. Performance appraisal etc. Human resource is
considered as one of the important asset of an organization so personnel administration is very
important for the organization. These functional departments are inter related and are mutually
associated with each other. Correlations of these functional departments are very important for the
well being of the organization

Future plans
The major future and expansion plan of corporation bank is capture the unbanked area. In a large
country like India least developed parts are present and corporation bank give importance for
those area. If we observe the branches of corporation bank we can understand this, number of
branches of corporation bank in northern part of India is more than that in the southern parts even
though which headquarted was in Mangalore. In northern region unbanked areas are more as
compared to the southern region corporation bank explores this opportunity and set up more
branches in the northern region. The major expansion plan is to set up more branches in
undeveloped areas and use the opportunity for further expansion.

Innovative management practices

Innovative management practices of Corporation bank are described as following. E-lobby is
considered as the one of the important management practice adopted by the Corporation bank elobby is the automated delivery of new and traditional banking products and services without the
[28]

intervention of the bank staff and through the interactive communication channels. E-Lobby
facility offers all banking transactions & information solutions to its customers through fully
automated Lobby Banking. No more queues at bank counters and yet banking made easy and
available for customers 24 hours a day, 7 days a week. The e-Lobby takes care of the multifarious
needs of various customers. It has self-service automation kiosks which include cash deposit
kiosk, cheque deposit kiosk, self-service passbook printer and an ATM. The kiosks are userfriendly and can be used at ease by the customers. Other innovative management practice
introduced by Corporation bank is coin vending machines. Customers will get coins through coin
vending machines, corporation bank trying to introduce coin vending machines in more branches.
Coin vending machines will help to end crisis for coins in cities. Another important change
introduced by Corporation bank is in case of point of sales machines. Corporation bank aims to
introduce 2000 POS machines all over India. Which help both sellers and buyers during their
transactions.

SWOT Analysis
A SWOT analysis (alternatively SWOT matrix) is a structured planning method used to evaluate
the strengths, weaknesses, opportunities and threats involved in a project or in a business venture.
A SWOT analysis can be carried out for a product, place, industry or person. It involves
specifying the objective of the business venture or project and identifying the internal and external
factors that are favorable and unfavorable to achieve that objective. The major strengths of
Corporation bank are listed as following.
Strengths
1. Leader in inclusive banking technology
Corporation bank is the leader in inclusive banking technology. Corporation bank
implements new technologies in banking field before others. They incorporate new
technologies very efficiently and effectively as compare to others and it provides an
advantage for the bank.
2. Efficiency of employees
Working efficiency of the employees is considered as the one of the most important
strength of corporation bank. Employees are very hard working and they provide better
services for the customers and which will leads to customer delight. Human resource is
considered as the one of the important asset of an organization and corporation bank has a
great work force. Employees are considered as the most important asset of the bank.
Weaknesses
1. Increasing NPA
Increase in NPA is considered as one of the important problem for the bank. Loans that are in
jeopardy of default. Once the borrower has failed to make interest or principal payments for 90
[29]

days the loan is considered to be a non-performing asset. Increase in NPA is a major problem
for the bank.
2. Man power shortage
Man power shortage is considered as the one of the most important problem faced by
corporation bank. Man power shortage restricts bank in its growth and expansion. Lack of
efficient man power is the major force behind man power shortage.
Opportunities
1. PMJDY (Pradhan Mantri Jan Dhan Yojana)
It is a program announced by Indian government according to which every family should
open an account in the bank. PMJDY is considered as the one of the important opportunity
for the bank. Corporation bank gained more than 7.73 crores of accounts in benefit of this
program.

Threats
1. Increased competition
Now a days competitions in the banking sector have been increased. It is considered as one of
the important threat faced by the corporation bank many private banks offering many services
to the customers and this competitive environment add pressure on the bank.

[30]

SECTION III

ROUTINE WORK

[31]

Objectives
Works have been done are providing customer services, loan documentation and marketing of
financial products. The objective behind the work is to create customer delight in the mind of
customers. Customer is considered as a king for an organization, so an organization should
emphasize on customer satisfaction. By performing these activities we will get an idea about
banking products and services and the operations in a bank. Customer services is basically starts
with providing information to the customers and which may leads to marketing of financial
products. Customer servicing is the ultimate objective behind these work, now a days competition
have been increased in banking sector so every bank should provide better services information
about various products we can create an impact in the mind of customer and which may leads to
sales of that product. Objective behind the routine work is to provide customer services and
achieve customer delight. No matter the size of your business, excellent customer service needs be at the
heart of your business model if you wish to be successful. It is important to provide good customer
service to all types of customers, including potential, new and existing customers. . Although it can take

extra resources, time and money, excellent customer service can generate positive word-of-mouth
for your business, keep your customers happy and encourage them to purchase from your business
again. Good customer service can help your business grow and prosper.

Achievements
Major achievement is that get an idea about customer management; customer is one of the most
important factor for an organization so customer satisfaction has a great relevance. By performing
the various functions allotted, get an idea about the banking operations, marketing of financial
products and loan documentation. Now I can easily say what are the documents required to get a
loan, and sb account interest rates etc which gives an opportunity to study about different kinds of
products and services offered by the bank. Another important achievement is that get a clear
picture about organization culture exists in the corporation bank. It is considered as an important
achievement for me. Marketing is considered as an important thing, during these days I get trace
about my marketing skills and now I believe that marketing is very important for an organization
to survive in business field.

Limitations
[32]

Major limitation associated with the work is that language problem. On first few days I have really
struggled with language problem and I had overcome this problem within one week. In order to
provide customer services, the person in charge should have knowledge about all products and
services offered by the bank. Corporation bank provides numerous products and services, studying
about the product were a hard task. Manager and co workers are very supporting and they help
overcome these limitations.

Learning from the work

By the work I have performed provide me a lot of new lessons for me. Now I have a clear
understanding about the various products and services offered by the corporation bank. Marketing
of financial products provides information about direct marketing of products and services. Most
important learning from the work is that customer management is really very important for an
organization. Through my job I get an opportunity to study some basics of customer management
which is considered as an important learning for me. By the work I get an opportunity to study
about the banking operations in my perspective it a golden opportunity to learn about the
operations. These days provide me an understanding that every organization should have its own
organization culture and which is completely different from other organizations.

Areas of improvement in the work for the organization

There is some room for improvement in the work for the organization. Majority of the customers
in that area should not have any knowledge about banking service so the bank should provide an
help desk service in order to support those customers. Even though the customers who doesnt
have any knowledge about various products and services and banking operations they are potential
customers for the bank so the bank should provide support service for them. Another important
thing is that attitude of the workers should change towards the customers; customers are the most
important building stone for the organization so the employees should understand that and to
provide better services for the customers. Implement more efficient technologies in bank in order
to attract more customers to the bank and create a good marketing team in order to increase
market share of the organization.

How routine work learnings can be incorporated as a part of

organizational study
Learnings of routine works can be incorporated as a part of organizational study. Routine works
will provide an opportunity to understand the operations performed in the organization and which
will help us to understand the organization culture exists in the organization etc. these factors are
very relevant if we conduct an organizational study. We can understand what happens in the
[33]

organization through routine work in the organization and which provides a golden opportunity to
incorporate these lessons in to organizational study. Some factors cant be studied externally,
through routine work we can indulge in the organization and which will in turn give all the
necessary informations we required in organizational study and which can be easily incorporated
in to the organizational study.

Time duration in days for the work

Time duration for the work is from April 7 2015 to May 28 2015. Working hour starts at 10 and
end at 5 on Monday to Friday, in Saturdays till 1.30

[34]

Bibliography

Annual report of corporation bank

Website of Corporation bank

Website of RBI

Journals

Articles

[35]