Punja & sind bank

It was in the year 1908, when a humble idea to uplift the poorest of poor of the land
culminated in the birth of Punjab & Sind Bank with the far-sighted vision of
luminaries like Bhai Vir Singh, Sir Sunder Singh Majitha and Sardar Tarlochan Singh.
They enjoyed the highest respect with the people of Punjab.

The bank was founded on the principle of social commitment to help the weaker
section of the society in their economic endeavours to raise their standard of life.

Decades have gone by, even today Punjab & Sind Bank stands committed to honor
the social commitments of the founding fathers.

Corporate Vision
We envision to emerge as a strong vibrant Bank through synchronization of the
human, financial and technological resources.

Corporate Mission
To put in place the effective Risk Management and Internal Control Systems.
To adopt and operationalise high-level technology standards.
To strive to achieve excellence in Customer Service.
To achieve the highest standards of transparency and accountability in the conduct
of banking business.
To adopt professional approach in effectively managing financial as well as non-
financial risks.
To maximize profitability and profits of the Bank with due compliance of prudential
guidelines.
To maximize competitive risk adjusted return on capital, through planned reduction
in the average cost of funds, increased yield on advances and investments besides
reduction in cost of operations.

Panjab nation bank

Punjab National Bank with 112 year tradition of sound and prudent banking is one
among 300 global companies and seven Indian companies which are expected to
emerge as challengers to World’s leading blue chip companies. While among top
1000 world banks, “The Banker”, the leading magazine in London, has placed PNB at
the 248th position, the bank features at 1308th position among Forbe’s Global 2000
list of global giants and fast growing companies.

At the same time, the bank has been conscious of its social responsibilities by
financing agriculture and allied activities and small scale industries (SSI).
Considering the importance of small scale industries bank has established 31
specialised branches to finance exclusively such industries.

Strong correspondent banking relationship which Punjab National Bank maintains

with over 200 leading international banks all over the world enhances its capabilities
to handle transactions world-wide. Besides, bank has Rupee Drawing Arrangements
with 15 exchange companies in the Gulf and one in Singapore. Bank is a member of
the SWIFT and over 150 branches of the bank are connected through its computer-
based terminal at Mumbai. With its state-of-art dealing rooms and well-trained
dealers, the bank offers efficient forex dealing operations in India.
The bank has been focussing on expanding its operations outside India and has
identified some of the emerging economies which offer large business potential. Bank
has set up representative offices at Almaty: Kazakhistan, Shanghai: China and in
London. Besides, Bank has opened a full fledged Branch in Kabul, Afghanistan.

Keeping in tune with changing times and to provide its customers more efficient and
speedy service, the Bank has taken major initiative in the field of computerization.
All the Branches of the Bank have been computerized. The Bank has also launched
aggressively the concept of "Any Time, Any Where Banking" through the introduction
of Centralized Banking Solution (CBS) and over 2409 offices have already been
brought under its ambit.

Syndicate bank
Syndicate Bank was established in 1925 in Udupi, the abode of Lord Krishna in coastal
Karnataka with a capital of Rs.8000/- by three visionaries - Sri Upendra Ananth Pai, a
businessman, Sri Vaman Kudva, an engineer and Dr.T M A Pai, a physician - who shared
a strong commitment to social welfare. Their objective was primarily to extend financial
assistance to the local weavers who were crippled by a crisis in the handloom industry
through mobilising small savings from the community. The bank collected as low as 2
annas daily at the doorsteps of the depositors through its Agents under its Pigmy Deposit
Scheme started in 1928. This scheme is the Bank's brand equity today and the Bank
collects around Rs. 2 crore per day under the scheme.

The progress of Syndicate Bank has been synonymous with the phase of progressive
banking in India. Spanning over 80 years of pioneering expertise, the Bank has created
for itself a solid customer base comprising customers of two or three generations. Being
firmly rooted in rural India and understanding the grassroot realities, the Bank's
perception had vision of future India. It has been propagating innovations in Banking and
also has been receptive to new ideas, without however getting uprooted from its
distinctive socio-economic and cultural ethos. Its philosophy of growth by mutual
sustenance of both the Bank and the people has paid rich dividends. The Bank has been
operating as a catalyst of development across the country with particular reference to the
common man at the individual level and in rural/semi urban centres at the area level.

The Bank is well equipped to meet the challenges of the 21st century in the areas of
information technology, knowledge and competition. A comprehensive IT plan is being
put in place and the skills and knowledge of the Bank's personnel are being upgraded
through a variety of training programmes to promote customer delight in every sphere of
its activity. The Bank has launched an ambitious technology plan called Centralised
Banking Solution (CBS) whereby 500 of our strategic branches with their ATMs are
being networked nationwide over a 4 year period.

United bank of India

United Bank of India (UBI) has a pride place in the economy of the eastern and north-eastern parts
of the country. The Bank which was formed out of the amalgamation of four small banks of Bengal
in December 1950 has a long chequered history. One of the constituents of the Banks- Comilla
Banking Corporation Ltd. was established as early as in 1914. Other three constituents- the Bengal
Central Bank Ltd, the Comilla Union Bank Ltd. and Hooghly Bank Ltd. were established in 1918,
1922 and 1932 respectively. Subsequently, Cuttack Bank Ltd. and Tezpur Industrial Bank Ltd. got
merged with UBI in the year 1961. Hindusthan Mercantile Bank Ltd. and Narang Bank of India Ltd.
were amalgamated with UBI in 1973 and 1976 respectively. Since inception the Bank is known for
its involvement with the economic growth and social development.

UBI with its headquarter at Kolkata is predominantly seen in the eastern and north eastern parts of
the country. UBI with its outstanding performance has created the confidence in itself and it is that
confidence of the people around UBI branches and confidence of the clients will become the most
precious assets in the years to come. So to build that confidence and to enrich that asset further in
the face of the challenges of the emerging competitive scenario, UBI is growing with its involvement
and commitments in the overall development of the country in conformity with the priority accorded
by our Government.

Today, the banks are to operate in a more de-regulated and liberalised environment for which steps
are initiated for improvement of financial strength, enhanced supervision and control and growth in
competitive efficiency. To face the challenges of the 21st century banking, UBI has devised schemes
and developed products which are more customer friendly and technology oriented. At the same
time it has not lost sight of the importance of rural economy and more particularly the agriculture
and allied activities as well as SME sector which are the prime source of occupation for our masses.

Dena bank

Dena Bank was founded on 26th May, 1938 by the family of Devkaran Nanjee under the name
Devkaran Nanjee Banking Company Ltd.

It became a Public Ltd. Company in December 1939 and later the name was changed to Dena
Bank Ltd.

In July 1969 Dena Bank Ltd. along with 13 other major banks was nationalized and is now a
Public Sector Bank constituted under the Banking Companies (Acquisition & Transfer of
Undertakings) Act, 1970. Under the provisions of the Banking Regulations Act 1949, in addition to
the business of banking, the Bank can undertake other business as specified in Section 6 of the
Banking Regulations Act, 1949.

Mission
DENA BANK will provide its
Customers - premier financial services of great value,
Staff - positive work environment and opportunity for
growth and achievement,
Shareholders - superior financial returns,
Community - economic growth
Vision
DENA BANK will emerge as the
most preferred Bank of customer choice
In its area of operations, by its
reputation and performance

Canara bank

Founded as 'Canara Bank Hindu Permanent Fund' in 1906, by late Sri. Ammembal Subba
Rao Pai, a philanthropist, this small seed blossomed into a limited company as 'Canara
Bank Ltd.' in 1910 and became Canara Bank in 1969 after nationalisation..
A good bank is not only the financial heart of the community, but also one with an
obligation of helping in every possible manner to improve the economic conditions of the
common people" - A. Subba Rao Pai.
Vision

To emerge as a ‘Best Practices Bank’ by pursuing global benchmarks in profitability,

operational efficiency, asset quality, risk management and expanding the global reach.

Mission

To provide quality banking services with enhanced customer orientation, higher value
creation for stakeholders and to continue as a responsive corporate social citizen by
effectively blending commercial pursuits with social banking.

Universal bank
overview
Universal Banking includes not only services related to savings and
loans but also investments. However in practice the term 'universal
banks' refers to those banks that offer a wide range of financial
services, beyond commercial banking and investment banking, insurance
etc. Universalbanking is a combination of commercial banking,
investment banking and various other activities including insurance. If
specialised banking is the one end universal banking is the other.This
is most common in European countries.

Universal banking has some advantages as well as disadvantages. The

main advantage of universal banking is that it results in greater
economic efficiency in the form of lower cost, higher output and better
products. However larger the banks, the greater the effects of their
failure on the system. Also there is the fear that such institutions,
by virtue of their sheer size, would gain monopoly power in the market,
which can have significant undesirable consequences for economic
efficiency. Also combining commercial and investment banking can gives
rise to conflict of interests .Conflict of interests was one of the
major reasons for introduction of Glass-Steagall Act in US.

Universal banking in India

In India Development financial institutions (DFIs) and refinancing

institutions (RFIs) were meeting specific sectoral needs and also
providing long-term resources at concessional terms, while the
commercial banks in general, by and large, confined themselves to the
core banking functions of accepting deposits and providing working
capital finance to industry, trade and agriculture. Consequent to the
liberalisation and deregulation of financial sector, there has been
blurring of distinction between the commercial banking and investment
banking.

Reserve Bank of India constituted on December 8, 1997, a Working Group

under the Chairmanship of Shri S.H. Khan to bring about greater clarity
in the respective roles of banks and financial institutions for greater
harmonisation of facilities and obligations . Also report of the
Committee on Banking Sector Reforms or Narasimham Committee (NC) has
major bearing on the issues considered by the Khan Working Group.

The issue of universal banking resurfaced in Year 2000, when ICICI gave
a presentation to RBI to discuss the time frame and possible options
for transforming itself into an universal bank. Reserve Bank of India
also spelt out to Parliamentary Standing Committee on Finance, its
proposed policy for universal banking, including a case-by-case
approach towards allowing domestic financial institutions to become
universal banks.

Now RBI has asked FIs, which are interested to convert itself into a
universal bank, to submit their plans for transition to a universal
bank for consideration and further discussions. FIs need to formulate a
road map for the transition path and strategy for smooth conversion
into an universal bank over a specified time frame. The plan should
specifically provide for full compliance with prudential norms as
applicable to banks over the proposed period.

Approaches
The Narsimham Committee II suggested that Development Financial
Institutions (DFIs) should convert ultimately into either commercial
banks or non-bank finance companies. The Khan Working Group held the
view that DFIS should be allowed to become banks at the earliest. The
RBI released a 'Discussion Paper' (DP) in January 1999 for wider public
debate. The feedback on the discussion paper indicated that while the
universal banking is desirable from the point of view of efficiency of
resource use, there is need for caution in moving towards such a system
by banks and DFIs. Major areas requiring attention are the status of
financial sector reforms, the state of preparedness of the concerned
institutions, the evolution of the regulatory regime and above all a
viable transition path for institutions which are desirous of moving in
the direction of universal banking. It is proposed to adopt the
following broad approach for considering proposals in this area:

The principle of "Universal Banking" is a desirable goal and some

progress has already been made by permitting banks to diversify into
investments and long-term financing and the DFIs to lend for working
capital, etc. However, banks have certain special characteristics and
as such any dilution of RBI's prudential and supervisory norms for
conduct of banking business would be inadvisable. Further, any
conglomerate, in which a bank is present, should be subject to a
consolidated approach to supervision and regulation.

Though the DFIs would continue to have a special role in the Indian
financial System, until the debt market demonstrates substantial
improvements in terms of liquidity and depth, any DFI, which wishes to
do so, should have the option to transform into bank (which it can
exercise), provided the prudential norms as applicable to banks are
fully satisfied. To this end, a DFI would need to prepare a transition
path in order to fully comply with the regulatory requirement of a
bank. The DFI concerned may consult RBI for such transition
arrangements. Reserve Bank will consider such requests on a case by
case basis.
The regulatory framework of RBI in respect of DFIs would need to be
strengthened if they are given greater access to short-term resources
for meeting their financing requirements, which is necessary.

In due course, and in the light of evolution of the financial system,

Narasimham Committee's recommendation that, ultimately there should be
only banks and restructured NBFCs can be operationalised.

Salient operational and regulatory issues to be addressed by the

FIs for conversion into a Universal Bank [RBI circular]

a) Reserve requirements

Compliance with the cash reserve ratio and statutory liquidity ratio requirements
(under Section 42 of RBI Act, 1934, and Section 24 of the Banking Regulation Act,
1949, respectively ) would be mandatory for an FI after its conversion into a universal
bank.

b) Permissible activities

Any activity of an FI currently undertaken but not permissible for a bank under
Section 6(1) of the B. R. Act, 1949, may have to be stopped or divested after its
conversion into a universal bank..

c) Disposal of non-banking assets -

Any immovable property, howsoever acquired by an FI, would, after its conversion
into a universal bank, be required to be disposed of within the maximum period of 7
years from the date of acquisition, in terms of Section 9 of the B. R. Act.

d) Composition of the Board

Changing the composition of the Board of Directors might become necessary for some
of the FIs after their conversion into a universal bank, to ensure compliance with the
provisions of Section 10(A) of the B. R. Act, which requires at least 51% of the total
number of directors to have special knowledge and experience.

e) Prohibition on floating charge of assets

The floating charge, if created by an FI, over its assets, would require, after its
conversion into a universal bank, ratification by the Reserve Bank of India under
Section 14(A) of the B. R. Act, since a banking company is not allowed to create a
floating charge on the undertaking or any property of the company unless duly
certified by RBI as required under the Section.
 f) Nature of subsidiaries

If any of the existing subsidiaries of an FI is engaged in an activity not permitted

under Section 6(1) of the B R Act , then on conversion of the FI into a universal bank,
delinking of such subsidiary / activity from the operations of the universal bank would
become necessary since Section 19 of the Act permits a bank to have subsidiaries
only for one or more of the activities permitted under Section 6(1) of B. R. Act.

g) Restriction on investments

An FI with equity investment in companies in excess of 30 per cent of the paid up

share capital of that company or 30 per cent of its own paid-up share capital and
reserves, whichever is less, on its conversion into a universal bank, would need to
divest such excess holdings to secure compliance with the provisions of Section 19(2)
of the B. R. Act, which prohibits a bank from holding shares in a company in excess
of these limits.

h) Connected lending

Section 20 of the B. R. Act prohibits grant of loans and advances by a bank on security
of its own shares or grant of loans or advances on behalf of any of its directors or to
any firm in which its director/manager or employee or guarantor is interested. The
compliance with these provisions would be mandatory after conversion of an FI to a
universal bank.

i) Licensing

An FI converting into a universal bank would be required to obtain a banking licence

from RBI under Section 22 of the B. R. Act, for carrying on banking business in India,
after complying with the applicable conditions.

j) Branch network

An FI, after its conversion into a bank, would also be required to comply with extant
branch licensing policy of RBI under which the new banks are required to allot at east
25 per cent of their total number of branches in semi-urban and rural areas.

k) Assets in India

An FI after its conversion into a universal bank, will be required to ensure that at the
close of business on the last Friday of every quarter, its total assets held in India are
not less than 75 per cent of its total demand and time liabilities in India, as required of
a bank under Section 25 of the B R Act.

l) Format of annual reports

 After converting into a universal bank, an FI will be required to publish its annual
balance sheet and profit and loss account in the in the forms set out in the Third
Schedule to the B R Act, as prescribed for a banking company under Section 29 and
Section 30 of the B. R. Act .

m) Managerial remuneration of the Chief Executive Officers

On conversion into a universal bank, the appointment and remuneration of the existing
Chief Executive Officers may have to be reviewed with the approval of RBI in terms
of the provisions of Section 35 B of the B. R. Act. The Section stipulates fixation of
remuneration of the Chairman and Managing Director of a bank by Reserve Bank of
India taking into account the profitability, net NPAs and other financial parameters.
Under the Section, prior approval of RBI would also be required for appointment of
Chairman and Managing Director.

n) Deposit insurance

An FI, on conversion into a universal bank, would also be required to comply with the
requirement of compulsory deposit insurance from DICGC up to a maximum of Rs.1
lakh per account, as applicable to the banks.

o) Authorised Dealer’s Licence

Some of the FIs at present hold restricted AD licence from RBI, Exchange Control
Department to enable them to undertake transactions necessary for or incidental to
their prescribed functions. On conversion into a universal bank, the new bank would
normally be eligible for fulfledged authorised dealer licence and would also attract the
full rigour of the Exchange Control Regulations applicable to the banks at present,
including prohibition on raising resources through external commercial borrowings.

p) Priority sector lending

On conversion of an FI to a universal bank, the obligation for lending to “priority

sector” up to a prescribed percentage of their ‘net bank credit’ would also become
applicable to it .

q) Prudential norms

After conversion of an FI in to a bank, the extant prudential norms of RBI for the all-
India financial institutions would no longer be applicable but the norms as applicable to
banks would be attracted and will need to be fully complied with.

Cooperative bank
The Co-operative banks has a history of almost 100 years. The Co-operative banks are an
important constituent of the Indian Financial System, judging by the role assigned to them, the
expectations they are supposed to fulfil, their number, and the number of offices they operate.
The co-operative movement originated in the West, but the importance that such banks have
assumed in India is rarely paralleled anywhere else in the world. Their role in rural financing
continues to be important even today, and their business in the urban areas also has increased
phenomenally in recent years mainly due to the sharp increase in the number of primary co-
operative banks.

While the co-operative banks in rural areas mainly finance agricultural based activities including
farming, cattle, milk, hatchery, personal finance etc. along with some small scale industries and
self-employment driven activities, the co-operative banks in urban areas mainly finance various
categories of people for self-employment, industries, small scale units, home finance, consumer
finance, personal finance, etc.
Some of the co-operative banks are quite forward looking and have developed sufficient core
competencies to challenge state and private sector banks.

According to NAFCUB the total deposits & lendings of Co-operative Banks is much more than
Old Private Sector Banks & also the New Private Sector Banks. This exponential growth of Co-
operative Banks is attributed mainly to their much better local reach, personal interaction with
customers, their ability to catch the nerve of the local clientele.

Though registered under the Co-operative Societies Act of the Respective States (where formed
originally) the banking related activities of the co-operative banks are also regulated by the
Reserve Bank of India. They are governed by the Banking Regulations Act 1949 and Banking
Laws (Co-operative Societies) Act, 1965.