A study on Bank of Maharashtra

COMMERCIAL BANKING SYSTEM

PROJECT PART-l
Submitted By
Group No: 11
MBA 2018-20 (Batch – B)

GOVIND N V & ASHWIN J GEORGE

Submitted To
MR. SUBRAMONIAM. K.
SENIOR ASSISTANT PROFESSOR

Date of Submission: 17 /09/2019

INTRODUCTION
The banking sector plays an important role in the performance of any economy. Banking
institutions in our country have been assigned a significant role in financing the process of
planned economic growth. The efficiency and competitiveness of banking system defines the
strength of any economy. Indian economy is not an exception to this and banking system in India
also plays a vital role in the process of economic growth and development. It is one of the
important financial pillars of the financial system which plays a vital role in the success / fail of
an economy. 'The banking system is fuel injection system which spurs economic growth by
mobilizing savings and allocating them to high return investment.

Enhanced spending on infrastructure, speedy implementation of projects and continuation of

reforms are expected to provide further impetus to growth. All these factors suggest that India’s
banking sector is also poised for robust growth as the rapidly growing business would turn to
banks for their credit needs.

Also, the advancements in technology have brought the mobile and internet banking services to
the fore. The banking sector is laying greater emphasis on providing improved services to their
clients and also upgrading their technology infrastructure, in order to enhance the customer’s
overall experience as well as give banks a competitive edge.

India’s digital lending stood at US$ 75 billion in FY18 and is estimated to reach US$ 1 trillion
by FY2023 driven by the five-fold increase in the digital disbursements

A sound banking system efficiently deploys mobilized savings in productive section and a
solvent banking system ensures that the bank is capable of meeting its obligation to the
depositors. The banking sector is dominant in India as it accounts for more than half the assets
of the financial sector. Economic development of the country is evident through the soundness
of the banking system. Deregulation in the financial market, market liberalization, economic
reforms have witnessed important changes in banking industry leading to incredible
competitiveness and technological sophistication leading to a new era of in banking. Since then,
every bank is relentless in their endeavor to become financial strong and operationally efficient
and effective. Indian banks are the dominant financial intermediaries in India and have made
good progress during the global financial crisis; it is evident from its annual credit growth and
profitability.

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 COMPANY PROFILE

Bank of Maharashtra is a major public sector bank in India. Government of India holds 87.74%
of the total shares. The bank has 15 million customers across the length and breadth of the country
served through 1897 branches as of 5 April 2016. It has largest network of branches by any public
sector bank in the state of Maharashtra.

Type Public

Traded as BSE: 532525

NSE: MAHABANK

Industry Banking, Financial services

Founded 1935; 84 years ago

Headquarters 1501, Lokmangal,

Shivajinagar,
Pune India

Key people A. S. Rajeev

(MD & CEO)

History
Maharashtra has a long history of commercial activity since ages because of its strategic location
in Indian sub-continent and its large natural resources. Maharashtra has been a progressive region
and the Banking activity was also started in this region quite early. Historically speaking, the
Bank of Bombay established in 1840 was the first Commercial Bank in Maharashtra. However,
the first commercial bank set up in Maharashtra outside Mumbai was The Poona Bank

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established in 1889 at Pune followed by The Deccan Bank in 1890 and the Bombay Banking
Company in 1898.Outbreak of the First World War leading to great depression took a heavy toll
on banks in India. Between 1914 and 1935 as many as 380 banks failed in the country out of
which 54 were based in Bombay province. The impact of these failures was felt more in
Maharashtra region because certain banks known for a long time were also closed down.
The effects of great depression started fading and new enterprises began emerging with new
hopes in all spheres of economy, including banking.
The bank was founded by V. G. Kale and D. K. Sathe and registered as a banking company on
16 September 1935 at Pune. The bank was registered on 16 September 1935 with an authorised
capital of ₹ 1 million, and began business on 8 February 1936. Bank's financial assistance to
small units has given birth to many of today's industrial houses. After nationalization in 1969,
the bank expanded rapidly.
Narendra Singh who had assumed the office of Chairman and Managing Director from 1
February 2012, left his office on 30 September 2013 on attaining superannuation. Sushil Muhnot
was the Chairman and Managing Director before Ravindra Prabhakar Marathe. Ravindra
Prabhakar Marathe was the MD and CEO before A.S. Rajiv. A.S.Rajiv became the managing
director and chief executive officer on 1st December 2018.
The first Board of Directors of The Bank of Maharashtra Ltd was constituted with
following members.
 Prof.V G Kale, an ex-member of Indian Tariff Board and a reputed economist and educationist
of old generation.
 Shri D K Sathe, a businessman and a prominent social worker and had experience of Co-
operative banking.
 Shri B M Gupte, Chairman of the Poona Central Co-operative Bank.
 Shri N. G. Pawar, Engineer and Contractor
 Shri V T Ranade, of M/s.V R Ranade and Sons a leading firm of Engineers and Contractors
 Shri V P Varde, a leading figure in the co-operative movement and who provided major
impetus to the move.
 Shri M R Joshi, a leading paper merchant from Pune.
 Shri S G alias Annasaheb Marathe of M/s.V R Ranade and Sons.
 Shri Raghunathrao Sohoni, a leading merchant who had initially moved the resolution of
formation of the Bank for Maharashtra.

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Milestones in the journey for nation building:

 Registered on 16-09-1935
 Commitment stated in the prospectus issued on 21-10-1935:
 1936 : Commenced operations on 08-02-1936 in Pune.
 1938 : Second branch of the bank was opened in 1938 at Fort, Bombay.
 1940 : Third branch came up at Deccan Gymkhana, Pune.
 1944 : Status as Scheduled Bank obtained.
 1946 : Deposits crossed Rs One crore mark. Formed fully owned subsidiary, The Maharashtra
Executor & Trustee Company. First branch outside Maharashtra opened in Hubli (Mysore
Starte, Now Karnataka).
 1949 : Expansion to AP: Hyderabad branch opened
 1963 : Expansion to Goa: Panjim Branch opened
 1966 : Expansion to Madhya Pradesh: Indore branch opened . Entered in Gujarat: Baroda
branch opened.
 1969 : Nationalised alongwith 13 other Banks. Entry in Delhi by opening Karolbagh branch
on 19-12-69. 1974 : Deposit base crossed Rs. 100 Crore mark.
 1974 : Deposit base crossed Rs. 100 Crore mark.
 1976 : Marathwada Grameena Bank, first RRB established on 26-08-1976.
 1978 : New Head Office building inaugurated by Hon'ble Prime Minister of India Shri.
Morarji Desai Deposits crossed the figure of Rs.500 Crores
 1979 : “Mahabank Agricultural Research and Rural Development Foundation”, registered as
a public trust, was established for undertaking research and extension work and to provide
more extensive services to farmers.
 1985 : 500th branch in Maharashtra state was opened at the hands of the then Prime Minister,
Mrs Indira Gandhi at Nariman Point, Mumbai. First Advanced Ledger Posting Machine
(ALPM) was installed at the branch. Golden Jubilee Year Celebrations launched at the hands
of Dr. Manmohan Singh, Governor Reserve Bank of India.
 1986 : Thane Grameena Bank sponsored.
 1987 : The 1000th branch of the Bank was inaugurated at Indira vasahat, Bibwewadi, Pune at
the auspicious hands of Dr.Shankar Dayal Sharma, the Honourable Vice President of India.
 1991 : "Mahabank Farmer Credit Card " was launched. Entered in to Domestic Credit Card
Business. Main Frame Computer installed. Became member of the SWIFT.

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 1995 : Diamond Jubilee Celebrations - Dr C Rangarajan the RBI Governor was the Chief
Guest. Deposits crossed Rs 5000 crore mark.
 1996 : Moved into “A” category from the earlier “C” category. Autonomy obtained.
 2000 : Deposits crossed Rs 10000 crore mark.
 2004 : Public Issue of Shares – 24% owned by Public. Listed in BSE and NSE.
 2005 : Bancassurance and Mutual Fund distribution business started.
 2006 : Crossed total business level of Rs.50,000 Crore. Branch CBS Project started.
 2009 : Entered in to 75th year of dedicated service to the Nation. Adopted 75 underdeveloped
villages for integrated overall development.
 2010 : 100% CBS of branches achieved Total Business crossed Rs One lakh crore. Opened
76 branches in the Platinum Year taking the total to 1506. Platinum Jubilee Year concluding
ceremony at the hands of the then Finance Minister, Shri Pranab Mukherjee held at Vigyan
Bhavan, New Delhi. New initiatives like Mahachetana, opening of E-lounges in Pune,
Mumbai and Delhi, Micro Asset Recovery cells were implemented.
 2011 : First SHG Branch opened in Pune. Bank sponsored Maharashtra Gramin Bank
achieved 100% CBS in record 77 days. 77th anniversary of Foundation day celebrations at
the hands of Honble Finance Minister, Shri Pranab Mukherjee dedicating 5 specialised
branches to SHGs and opening of 5 Mid-Corporate branches on the occasion. First ever visit
of Union Finance Minister to Bank’s Central Office - Honble Finance Minister, Shri Pranab
Mukherjee visits Lokmangal, the Bank’s Headquarters in Pune on 7-11-2011.
 2012 : Hon’ble Union Finance Minister Shri P Chidambaram inaugurates the Bank’s 1624th
branch at Rajgambiram on 25.08.2012.
 Sept 2012: Bank’s total business crossed Rs.1,50,000 cr and reached the level of Rs. 1,51,320
crore. Bank of Maharashtra awarded “Best Banker – Customer Friendliness” for 2012 by The
Sunday Standard. Received the Dun & Bradstreet – Polaris Financial Technology Banking
Award 2012 as Best Public Sector Bank under the category “Asset Quality”. BoM hosted
Bancon 2012 in Pune on 24th-25th November 2012. Hon’ble Union Finance Minister Shri P.
Chidambaram inaugurated the Conference.
 2013 : Launch of Rupay card launch by Sonia Gandhi in Delhi 50 Branches opened on 15th
August 2013 Total Business Crossed Rs. 2.00 Lakh Crore

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 2014 : 162 new branches; largest number to be opened in a single year, opened taking the
branch network to 1890 1129 ATMs installed taking the total number to 1827 Bank’s own
EFT Switch implemented live.
 2015 : 26 new branches; Branch network reached 1889 Launched “Mahamobile”-Mobile
Banking Application ISO 27001:2013 certification for its Data Centre, DR Centre, PMO &
HO-IT
 2016 : Bank crossed milestone figure of Rs 2.50 Lakh Crore Implemented “MAHASECURE”
– add on application for Internet Banking; because of which no phishing attacks have been
reported “Best Financial Inclusion Initiative” award by IBA - Banking Technology
Board of Directors

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Vision
To be a vibrant, forward looking, techno-savvy, customer centric bank serving diverse sections
of the society, enhancing shareholders’ and employees’ value while moving towards global
presence.
Our Logo
The Deepmal
With its many lights rising to greater heights.
The Pillar

Our institution- Symbolising strength.

The Diyas
Our Branches- Symbolising service.
The 3 M's symbolising
Mobilisation of Money
Modernisation of Methods and
Motivation of Staff.

Mission
 To ensure quick and efficient response to customer expectations.
 To innovate products and services to cater to diverse sections of society.
 To adopt latest technology on a continuous basis.
 To build proactive, professional and involved workforce.
 To enhance the shareholders’ wealth through best practices and corporate governance.
 To enter international arena through branch network.
 To be a vibrant, forward looking, techno-savvy, customer centric bank serving diverse
sections of the society, enhancing shareholders' and employees' value while moving
towards global presence.

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Main Policies

 Collection of Cheques policy

 Compensation Policy
 Cust_Rights_Policy
 Grievance Redressal Policy
 Customer-Right-Policy
 Deposit Policy Version No 9
 Domestic-money-transfer
 Grievance-Redressal-Policy
 KYC / AML / CFT Policy
 Policy-Operational-Procedure-Settelment-Claims-Respect-Deposit-accounts-
Contents -STV-Lockers-Safe-Custody-Articles-Deceased-Missing-Persons
 Dividend Distribution Policy
 Policy for Related Party Transactions
 Policy for Determining Material Information
 Policy for Determining Material Subsidiaries
 Code of Conduct for Directors and Senior Management

Products & Services

Bank of Maharashtra offers a range of financial products and services to its customers. Following
are the products and services of Bank of Maharashtra.
 Savings Deposits o Mahabank – Sheetal Jama Yojana
o Mahabank – Yuva Yojana o Mahabank – Trust Deposit Scheme
o Mahabank Lok Bachat Yojana o FCNR Account
o Mahabank – Swasthya Yojana o Cumulative Deposit Scheme (CDR)
o NRI Ordinary Account o Quarterly Interest Deposit Scheme
o NRI External Account o Mixie Deposit Scheme
 Current Deposits o Mahasaraswati Scheme
o Mahabank – Pearl & Sapphire Bank of Maharashtra Loan
 Term Deposits  Educational Loans
o Mahabank – Sulabh Jama Yojana  Loans for Corporates
o Monthly Interest Deposit Scheme  Loans for Exporters

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  Loans for Professionals  Mahabank Salary Gain Scheme
 Loans for Agriculturists  Mahabank Vehicle Loan Scheme
 Loans for Individuals  Mahabank Renewable Energy
 Housing Finance Scheme Equipments
 Mahabank Platinum Housing Loans:  Mahabank Realty Finance
Festive Offer  Personal Loans
 Mahabank Adhar Scheme  Mahabank Solar Home Systems
 Mahabank Gold Card Scheme for  Mahabank Consumer Loan Scheme
Exporters
Other Services
 ATM Services
 Demat Services
 Bancassurance
 Credit Card
 Mahabill Pay
 Mahabank Insta Remit Scheme
 NEFT
 Online Trading

Current Performance
Bank has registered a Net Profit of ` 72.38 crore in Q4 of FY 2018-2019 thus ending on a high
note and we are committed to carry forward this momentum in FY 2019-2020 as well. Bank has
branch network of 1832 branches of which 1043branches are located in rural and semi urban

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areas. Bank has PAN India presence. Bank has committed and dedicated work force of
12913 employees to serve its customers

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Competition

Name Last Price Market Net Interest Net Profit Total Assets
Cap. Income
(Rs. cr.)
SBI 284.70 254,083.69 253,322.14 3,069.07 3,888,467.07
Bank of Baroda 98.85 38,024.90 52,906.25 1,087.07 819,671.95
PNB 64.55 29,719.12 52,147.13 -10,026.41 789,265.79
Bank of India 68.40 22,414.16 41,004.82 -5,497.42 630,883.91
IDBI Bank 28.25 21,855.03 22,102.10 -15,012.97 321,111.40
Canara Bank 203.20 15,305.93 46,896.72 547.14 711,782.81
Allahabad Bank 33.35 12,411.93 16,915.77 -8,457.38 249,576.66
UCO Bank 14.80 10,896.05 - - -
Union Bank 59.15 10,428.24 34,313.67 -2,933.41 498,580.54
Corporation Bk 16.90 10,130.17 15,622.65 -6,325.30 213,624.11
IOB 10.10 9,233.06 - - -
Oriental Bank 64.25 8,803.59 - - -
Syndicate Bank 30.65 8,225.61 21,725.40 -2,524.20 312,970.86
Central Bank 19.80 8,169.32 22,748.62 -5,627.72 331,884.64
Indian Bank 164.00 8,061.17 19,182.06 320.93 280,388.28
Bank of Mah 12.05 7,018.05 10,849.68 -4,783.25 164,676.47
United Bank 9.40 6,982.24 - - -
Vijaya Bank 46.05 6,005.60 - - -
Andhra Bank 19.35 5,774.98 19,202.88 -2,767.09 254,043.99
Dena Bank 12.65 2,857.69 - - -
Punjab & Sind 20.25 1,219.17 - - -

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