CASE STUDY: MIS at BRANCH OF STATE BANK OF INDIA (SIRHIND,Fatehgarh Sahib)

This Branch of STATE BANK OF INDIA was established on 9th September, 1998 with its headquarters at Mumbai (Maharashtra). It has its Centralized Banking System (CBS) at Belapur and Divisional Office at Chandigarh. This bank is governed by Banking Companies Regulation Act, Negotiable Instruments Act and Reserve Bank of India. This branch is headed by headed by Sh. Dinesh Gulati. It employs 40 Officers, 8 Clerks and 2 Peons. Its Deposits are around 22 crores whereas the Advances are amounted as 21 crores. It has various departments like Accounting, Rural Finance and Operating. The hardware used are HCL Computers, CPUs, Printers, Scanners and ATM Machines. Software used by this Branch is BANKS 24 which was developed by TATA Consultancy Services (TCS) and FINACLE. This Branch is divided in the following hierarchal diagram to make its functioning smooth It reports to its divisional office that is situated at Chandigarh at a distance of about 55 km. The reports are sent monthly to divisional office. The Divisional Manager, in turn, sends his reports to the regional office. The Branch Manager conducts the self audit half-yearly. The organizational chart of the branch is given below:BRANCH MANAGER

FIELD OFFICER

ACCOUNTANT

MARKETING RESEACH OFFICER (MRO)

SINGLE WINDOW OPERATOR (SWO)

This Branch performs various functions like Advances (Cash Credit accounts, Overdraft accounts, Loan against Fixed Deposits, Housing loan, Valuable security loan, Education loan and Demand loan) and Borrowings (Saving accounts, Current accounts, Term deposits, Recurring deposits, Public Provident Fund accounts). Due to substantial increase in work load, the officers were finding it difficult to update records in the manual system. Employee requirement was more and for a single transaction, a no. of books had to be updated. The branch manager was also facing some security problems. Moreover customers found it difficult to move from one counter to another just for a single transaction. Excessive cost incurred for purchasing and maintaining books and transportation. Branch has to

maintain an up to date books of accounts and instructions issued by head office. Each day, a member of the branch goes to the clearing house as the representative of the branch to clear drafts and cheques received from other banks. With a view to overcome the above problems, the branch manager decided to apply fully automated computerized system in the year 2001-02 which was readily compatible with the system of head quarters and other branches.. Here are some examples of that system which shows the information system process i.e. Input, Process and Output of various systems: 1. Debit and Credit of Accounts:

2. Maintenance of Accounts:

3. Customer Service:

4. Opening and Closing of Accounts:

The Benefits of such a phase by phase computerization are manifold. Now Customer is not Customer of branch but Bank. All the users cannot have access to all the data. Only selected people are allowed to access certain data. The cost of maintenance of manual records and books is reduced. Once the entry is posted in any book, the other effects of the entries are posted automatically which saves time. As the data is integrated, the accuracy is ensured. Costs associated with hardware and software is very less compared to its benefits. It is compensated by reduction in work-force. Any detail can be searched within seconds without any delay which helps in frequent decision making. It has become easier to verify, validate, trace and correct the data. The system is flexible so that any error can be rectified and new updates can be implemented. Information is disseminated periodically on-line through computer terminals.