3.

BANK OF MAHARASHTRA

INTRODUCTION

Bank of Maharashtra is a major public sector bank in India. The Government of India holds
87.74% of the shares. The bank had 15 million customers across the country with 1,897 branches
as of 5 April 2016. It had the largest network of branches of any public sector bank in the state
of Maharashtra. Bank of Maharashtra (BoM) was registered on September 16, 1935 with a
capital of Rs10 Lakh. Today it has the largest network of 1,375 branches than any other public
sector banks in Maharashtra. It has a network of 345 ATMs

HISTORY

 Bank of Maharashtra is a public sector bank in Maharashtra which offers personal

banking cash management retail loans and other financial services. Their services include
deposits savings/current bank account vehicle loans personal loans retail trade finance
global banking lending to priority sector and small scale sector foreign exchange and
export finance corporate loans and equipment loans. As on 31 March 2019 the bank's
total branch network comprised of 1832 branches spread across all the States and 4 union
territories.
 The branch network includes specialized branches in the area of Foreign Exchange
Government business Treasury and International Banking Industrial Finance MSME and
Hi-tech Agriculture Pension Payment etc. The bank's ATM network stood at 1858 as on
31 March 2019.The Bank has one subsidiary namely The Maharashtra Executor &
Trustee Company Pvt Ltd which undertakes management of public/ private trusts and
administration/ execution of Will. They also sponsored three Regional Rural Banks
namely Aurangabad Jalna Gramin Bank Thane Gramin Bank and Marathwada Gramin
Bank with head office at Aurangabad Thane and Nanded respectively.
 Bank of Maharashtra was incorporated on September 16 1935 and started their business
on February 8 1936. In April 10 1946 The Maharashtra Executor & Trustee Company Pvt
Ltd was incorporated as a wholly owned subsidiary of the Bank. In July 1969 Bank of
Maharashtra was nationalized along with 13 other banks. After nationalization the Bank
expanded rapidly. In the year 1998 the Bank attainted the autonomous status which
 helped the Bank in providing more and more services with simplified procedures without
intervention of Government.
 In the year 2000 they incorporated Magic eMoney Ltd (MeM) a joint venture of Bank of
Maharashtra Dena Bank NextStep Infotech P. Ltd. (NSIPL) and Magic Software
Enterprises (MSE) Israel continued to undertake departmental projects.During the year
2003-04 the Bank came with their initial public offer of 10 crore shares of Rs 10/- each at
a premium of Rs 13/- amounting to Rs 230 crore. The issue received overwhelming
response and was over subscribed by more than 11 times. Also they opened 34 new
branches and upgraded 10 extension counters into full-fledged branches during the
year.During the year 2004-05 the Bank opened 14 new branches 2 extension counters and
up-graded 1 extension counter into a full-fledged branch. Also they opened Holiday
Home at Shirdi in addition to 5 existing Holiday Homes at different places.
 The Bank acquired a stake of 9% in Global Trade Finance Pvt Ltd a non-banking finance
company promoted by the EXIM Bank.In January 2006 the Bank signed a MoU with
Life Insurance Corporation of India for distribution of their insurance products. Also they
launched a scheme of money transfer service for Non Resident Indians and other foreign
account customers using the Western Union Money Transfer Services provided by
Western Union Financial Services Inc. For this regard the Bank has entered into
agreement with Weizmann Forex Ltd the primary agent of Western Union Financial
Services Inc.
 During the year 2006-07 the Bank opened 29 new branches and upgraded 16 extension
counters into full-fledged branches. They expanded the ATM Network from 145 ATMs
to 302 ATMs during the year and entered into collaboration with VISA for issuance of
Debit cards. The Bank commissioned their own Data Center at Pune and Disaster
Recovery (DR) site at Hyderabad
 The Year 2017-2018 was a Technology Upscaling year for the bank. CBS Contract has
been renewed for a period of 5 years from 1 October 2017 to 30 September 2022 with
revamped CBS Front-end and additional components viz. Automated Testing Batch Job
Automation On-line Training for staffs Revenue Leakage Monitoring etc. During the year
under review the bank tied up with BSNL for upgrading the Bandwidth of the existing
Leased Lines to 2 Mbps
  During the FY 2018-19 Bank has redeemed Basel II /Basel III Compliant Bonds for an
amount Rs 200 crore on the redemption date. Bank undertook borrowing as part of its
asset liability management. Bank also entered into strategic tie-ups with Tractor
Manufacturers Micro Irrigation Companies Farm Pond Construction Company for
promoting farm mechanization micro irrigation activities and also with Govt. of
Maharashtra under POCRA / SMART Project for financing to FPO during the year 2018-
19.

PRODUCTS

 Consumer banking
 Corporate banking
 Finance and insurance
 Investment banking
 mortgage loans
 private banking
 Private equity
 Savings
 Securities
 Asset management
 Wealth management
 credit cards

ANCILLARY PRODUCTS

 PPF Scheme
 Unclaimed deposit
 LC/BG
 Insurance
 Mutual Fund
 Depository services
 Lockers
  Metco-Trustees
 Senior citizen saving scheme
 Debenture Trusteeship Business
 Sukanya samriddhi yojana
 Pradhan mantri yojana
 National pension scheme

SERVICES

 Documentary credits

 Documentary collections
 Import financing
 Export financing
 Guarantees
 Remittance facilities
 Travel related forex services
 Liberalized remittance Scheme
 NRI services
 Hedging for Exchange Risk
 Letter of Credit:
 Imports letters of Credit
 Export LC Advising

ISSUING BANK GUARANTEE:

 Bank of Maharashtra can issue the local guarantees against the counter guarantees of
foreign Bank.
 Being state owned bank, its guarantees are accepted by all including government
departments and other Public Sector Undertakings.
 Foreign Bank Guarantees are handled across the globe
 
 EXPORT CREDIT
 Pre-Shipment Export Finance / Packing Credits are available in both INR and Foreign
Currency
 Post-Shipment Export Finance / FOBN is available in both INR and Foreign Currency
 Interest equalization for  selected sectors as per RBI guidelines
 

Documents under Collection:

 Export Bill under Collection
 Import Bill under Collection
 

Remittances:
 Inward Remittances.
 Outward Remittances
 Liberalized remittance Scheme for Individuals
 

Buyers’ Credit:
 Exchange Control Clearance
 SBLC/Bank Guarantee for availing Buyers’ Credit
 

RISK MANAGEMENT
 Forward contracts to hedge the exchange risk.
 

CAPITAL ACCOUNT TRANSACTIONS

Bank handles all Capital Account Transactions and ensure its FEMA compliances as per RBI
guidelines

 Overseas Direct Investments (ODI)

 Foreign Direct Investments (FDI)
 External Commercial Borrowings  (ECB)
Services

BANK OF MAHARASHTRA OFFERS THE FOLLOWING SERVICES:

 Personal Banking: BoM offers several products and services in personal banking such as
deposits, savings, personal loans, educational loans, RTGS, demat services, credit cards,etc.

 NRI banking: It also offers products and services to NRI clients such as FCNR accounts,
remittance services, etc.
 The bank also offers services to agricultural and SME sectors.
 ATM Services, Credit Card Services, DEMAT Services Bancassurance, Distribution of
Mutual Funds
 Western Union Money Transfer facitity, Capital Market Application (ASBA) ASBA PLUS,
Executors and Trustee Services
 Mahabill Pay, RTGS/NEFT, MAHAeTRADE (On line Share Trading Facility)
 Mahabank Swasthya Yojna, Maha Suraksha Yojana, E Payment Taxes, New Pension
Scheme, Govt Business, Maha–Double Deposit Scheme and Door Step Banking
 The Bank offers personal banking, cash management, retail loans and other financial
services

The Bank Of Maharastra also includes services Like deposits,savings/current bank account,
vehicle loans, personal loans, retail trade finance, global banking, lending to priority sector small
scale sector, foreign exchange and export finance, corporate loans and equipment loans.

AWARDS

 Bank of Maharashtra awarded “Best Banker – Customer Friendliness” for 2012 by The
Sunday Standard 2012
 Received the Dun & Bradstreet – Polaris Financial Technology Banking Award 2012 as
Best Public Sector Bank under the category “Asset Quality”2012
 SCHEMES

The Bank launched new schemes like:

 Mahalaxmi Term Deposit Scheme (3 years term deposit scheme)

 Mahadeep Scheme (Financing of Solar Water Heating System)
 Insta Remit Scheme (RTGS scheme for instant fund transfer)
 Maha Millionaire RD (MMRD) Scheme
 Maha Lakhpati RD (MLRD) Scheme
 Mahasanchay Systematic Deposit Plan (MSDP)

MOBILE- POINT OF SALE.

The handy, wireless mobile type M-Pos instrument will be provided to the merchants with a
minimum annual fee payable at quarterly intervals and adjustable /reimbursable from the
transactions.

THE OVERALL PROCESS:

 When the merchant(Customer) is registered on the Airpay Lead System the merchant
information is captured by Airpay’s call center.
 Airpay’s call center representative will call the merchant and explain the product and the
charges (advance + trxn) to be incurred by him as well as all the documents required by Airpay.
As part of the documents, Airpay will also collect an ECS mandate form from the merchant.
 Airpay’s representative will also communicate the number of days it will take to deliver
the POS machine to the merchant.
 Airpay will request the merchant to pay the full year fees in advance in best case
scenario. On a case to case basis, Airpay may allow the merchant to make the payment in 2 parts
or in case 4 parts.
 Airpay’s call center representative will provide the following options to the merchant to
collect the advance charges:
 Online link sent to through emailed or as a sms to their mobile no. Merchant can use
Credit card/Debit Card/Net Banking to make this payment.
 Cash Deposit – Merchant can deposit cash at any of Airpay’s retail partners who do
mobile topup.
 Cheque – Cheque deposit in the branch with name of Merchant and contact details
mentioned at the back OR cheque collection when the device is delivered by Airpay’s
representative.
 Airpay’s local representative will deliver the device to the merchant. He will provide a
demo and get a delivery challan signed from the merchant.
 Once the transactions are started, Airpay will collect all the money on behalf of the
merchant from Rupay & VISA and deposit to the merchant’s current account within T+2
working days.
 Airpay will deduct its transaction charges before depositing the money into the merchant
account.
 •In case the merchant has paid half yearly or quarterly advance fees, Airpay will deduct
the next half/quarter fees from the merchant’s transaction payout amount.
 In case the merchant payout amount is less than the advance fees, Airpay will deduct it
from Merchant’s current account using the ECS mandate.
BENEFITS TO THE MERCHANTS

 By accepting payment through cards, sale proceeds are credited electronically in your
account as per the agreed transaction cycle.
 Our Acquiring Services results in fewer Cash transactions and saves your efforts and
resources in counting, re-counting, storage of Cash and depositing it in the Bank. This
allows merchant to spend more time and focus on important things like managing and
growing your business.
 The facility of making payments through Cards encourages customers to spend more as
they are not constrained by cash on hand. This not only results in customer stickiness but
also in increased purchases of higher-margin products as well as specialty items.
 Getting the facility of making payment through Credit, Debit or pre-paid cards may lead
to Customer happiness.
 Our robust merchant acquiring services provides quick response and reliable support in
case of network outages and POS terminal malfunctioning. This minimizes downtime,
thus enhancing productivity and profitability.