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NAVEEN M
(1NT15MBA56)
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3 Chapter 3
3.1 Theoretical background of the data collected
4 Chapter 4
4.1 Analysis and interpretation of data
collected
5 Chapter 5
5.1 Summary of findings
5.2 Suggestions/recommendations
5.3 Conclusion
6 Bibliograaphy
7 Annexture
Chapter 1
Introduction
Introduction
Introduction about the Internship :
The Credit risk management process of the Bank shall be driven by a strong
organizational culture and sound operating procedures, involving corporate values,
attitudes, competencies, effective internal reporting and contingency planning.
Credit risk is the possibility of loss associated with changes in the credit quality of
the borrowers and counter parties. The counter parties may include small and
medium enterprises, individual, corporate, financial institution, bank etc. In a
banks portfolio, losses accelerate from outright default due to unwillingness of a
borrower or counter party to honor commitments in relation to leading settlement
and other financial transactions.
Addressing such risks proactively may provide an organization with a competitive
advantage. Organizations manage risk using a variety of strategies and products. It
is important to understand how these products and strategies work to reduce risk
within the context of the organizations risk tolerance and objective.
Need for credit risk management :
To gather key information about risk areas of a borrower.
It provides a basis for credit risk pricing.
It is a risk management tool for prospective new borrowers in addition to
monitoring the weaker parameters and taking remedial action.
It is needed to identify risk measures involved in the financial sector i.e.
dismantling of State control, deregulation, globalization and allowing things
to shape on the basis of market conditions, face new risk and challenges.
Secondary Data :
1. Banks manuals and circulars
2. Annual Report of previous years
3. Website of the Bank
4. Old Reports related to Banking services.
Literature Review :
Article 1
Title : Bank Credit Risk Management
Author : Boffey. R. Robson G N
Document URL
https://search.proquest.com/docview/33121952?accountid=166506
Article 4
Title : Credit risk evaluation: the application of scorecard in financial services
Author : WU, Desheng Dash, Seco Luis A
Document URL
https://search.proquest.com/docview/34739508?accountid=166506
Article 5
Title : Credit Risk Management Policy And The Stability Of Latvian Banking
Sector
New phase of Indian Banking System with the advent of Indian Financial &
Banking Sector Reforms after 1991.
Phase I
The General Bank of India was set up in the year 1786. After that Bank of
Hindustan and Bengal Bank. The East India Company established Bank of Bengal
(1809), Bank of Bombay (1840) and Bank of Madras (1843) as independent units
and called it Presidency Banks.
These three banks were merged in 1920 and Imperial Bank of India was
established which started as private shareholders banks, mostly Europeans
shareholders.
Phase II
Government took major steps in this Indian Banking Sector Reform after
independence. In 1955, it nationalized Imperial Bank of India with extensive
banking facilities on a large scale especially in rural and semi-urban areas. It
formed State Bank of India to act as the principal agent of RBI and to handle
banking transactions of the Union and State Governments all over the country.
Seven banks forming subsidiary of State Bank of India was nationalized in
1960 on 19th July 1969, major process of nationalization was carried out. It was
the effort of the then Prime Minister of India, Mrs. Indira Gandhi. 14 major
commercial banks in the country was nationalized.
Second phase of nationalization Indian Banking Sector Reform was carried
out in 1980 with seven more banks. This step brought 80% of the banking segment
in India under Government ownership.
The following are the steps taken by the Government of India to Regulate Banking
Institutions in the Country:-
Phase III
This phase has introduced many more products and facilities in the banking
sector in its reforms measure. In 1991, under the chairmanship of M Narasimham,
a committee was set up by his name which worked for the liberalization of banking
practices.
The country is flooded with foreign banks and their ATM stations. Efforts
are being put to give a satisfactory service to customers. Phone banking and net
banking is introduced. The entire system became more convenient and swift. Time
is given more importance than money.
The financial system of India has shown a great deal of resilience. It is
sheltered from any crisis triggered by any external macroeconomics shock as other
East Asian Countries suffered. This is all due to a flexible exchange rate regime,
the foreign reserves are high, the capital account is not yet fully convertible, and
banks and their customers have limited foreign exchange exposure.
Scope
The banking sector is considered the most lucrative option in todays job market.
In the industry, a position in Treasury or Foreign exchange is considered right on
top and this is followed by careers in Private Banking, Investment Banking and
Retail Banking. One could work in a variety of areas in banking industry including
Recurring Deposit Account, Banking officer, Probationary officer, loan officer etc.
In the Financial Services, some of the important jobs include that of a stockbroker
who is essentially a person who buys and sells securities on behalf of the
individuals and institutions for some commission. While some brokers like to
practice with individual clients others work for institutions. Brokers who work for
institutional investors are often called securities trader. Many prefer to as dealers,
advisors and securities analysts.
COMPANY PROFILE
History of Canara Bank
Late Sri Ammembal Subbarao Pai
Over the years, the Bank has been scaling up its market position
to emerge as a major 'Financial Conglomerate' with as many as
nine subsidiaries/sponsored institutions/joint ventures in India and
abroad. As at September 2016, the Bank has further expanded its
domestic presence, with 5860 branches spread across all
geographical segments. Keeping customer convenience at the
forefront, the Bank provides a wide array of alternative delivery
channels that include 10026 ATMs, covering 4081 centres. The
Bank set up 182 hi-tech E-lounges in select branches with
facilities like ATM, Cash Deposit Kiosk with voice guided system,
Cheque Deposit Kiosk, Self Printing Passbook Kiosk, Internet
Banking Terminal, Online Trading Terminal and Corporate Website
Access. Several IT initiatives were undertaken. The Bank has
successfully launched Canara Empower- Unified payment
interface for single platform in accessing multiple bank accounts
and CANARA TECH- support for structured resolution of queries
related to tech-products. The Bank also launched Canara Bank
RuPay Debit Card, Canara Club Card Debit, Canara Secured
Credit Card, Canara Elite Debit Card, Canara Bank Platinum Rupay
Cards, Platinum Rupay Card and EMV Chip Cards under debit and
credit cards. Online Savings Bank and PPF account opening were
introduced. The Bank made several value additions under internet
banking and mobile banking services. The Bank has introduced
enhanced version of CanMobile, Canara e-InfoBook- an electronic
passbook and banking related information facility on mobile
platforms - Android, Windows & iOS and Canara m-Wallet to
provide more convenience and facilities to customers. Canara
Galaxy, a combo product launched, comprising SB, Demat, OLT,
Internet & Mobile Banking, Insurance, card services and other
add-ons. Under education loan interest subsidy, web portals
released for Central Scheme for Interest Subsidy (CSIS), Ministry
of HRD, GoI, Dr. Ambedkar Central Sector Scheme of Interest
Subsidy (ACSIS), Ministry of Social Justice & Empowerment, GoI
and Padho Pardesh, Ministry of Minority Affairs, GoI. The Bank has
launched Instant loan application sanction portal for Housing Loan
and Car Loan. The Bank issued MUDRA Debit Card for overdraft
accounts under MUDRA Card scheme. P2U (Person to UIDAI) funds
transfer through Mobile Banking in WAP channel was enabled by
the Bank. Subscription of Social Security Schemes of Govt. of
India through ATM, SMS and Internet Banking was enabled by the
Bank. The Bank has implemented Jeevan Praman a digital life
certificate for pensioners. The Bank has Implemented automated
reminder SMS/Email Alerts to customers intimating to submit RC
Copy/Insurance for the vehicle loans and tax paid
receipt/certificate for the mortgaged property. Missed Call / SMS
Based ePass Sheet generation made live by the Bank. The Bank
has successfully implemented SMS/Email Alerts to NPA Borrowers
intimating to regularize overdues in accounts. Mobile Banking
Registration through ATMs (Interoperability through NFS) has been
successfully introduced by the Bank. The Bank has successfully
completed Aadhaar seeding through BC Terminal and
implemented renewal of Subscription for Social Security Schemes
(PMJJBY & PMSBY). Not just in commercial banking, the Bank has
also carved a distinctive mark, in various corporate social
responsibilities, namely, serving national priorities, promoting
rural development, enhancing rural self-employment through
several training institutes and spearheading financial inclusion
objective. Promoting an inclusive growth strategy, which has been
formed as the basic plank of national policy agenda today, is in
fact deeply rooted in the Bank's founding principles. "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". These insightful words of our founder
continue to resonate even today in serving the society with a
purpose. The growth story of Canara Bank in its first century was
due, among others, to the continued patronage of its valued
customers, stakeholders, committed staff and uncanny leadership
ability demonstrated by its leaders at the helm of affairs. We
strongly believe that the next century is going to be equally
rewarding and eventful not only in service of the nation but also
in helping the Bank emerge as a "Preferred Bank" by pursuing
global benchmarks in profitability, operational efficiency, asset
quality, risk management and expanding the global reach.
Background and Inception of the Banks
Canara Bank is basically a public sector bank which carries acceptance of deposits,
mobilization of savings, provides loans and advances, NRI Services,
remittance/collection, funds management, customer service etc.
Vision statement
Product/Services Profile :
The bank has introduced a rich portfolio of deposits, loans remittances, bills,
foreign exchange, merchant banking products and credit card.
Deposit Schemes :
Term Deposits:
Fixed Deposits
Kamadhenu Deposits
Recurring Deposits
Can flexi Deposits
NRI:
NRE (Non Resident External Rupee Account)
NRO (Non Resident Ordinary Account)
FCNR (Foreign Currency Non Resident Accounts -Banks) - RFC Deposits
Credit Cards:
Cancard visa classic
Cancard visa corporate
Cancard MasterCard
Cancard visa international gold
FOREX Remittance
Inland Remittance
Electronic Remittance Services
Inward / Outward Collection Instruments
Foreig Exchange :
Area of Operation
Competitors Information :
Public Banks
Bank of India
Bank of Baroda
Central Bank of India
Union Bank of India
State Bank of India
Andra Bank
Dena Bank
And many more others
Private and Foreign Banks
HDFC
Axis Bank
HSBC
Barclays Bank
Deutsche Bank
And many more
STRENGTHS WEAKNESSES
OPPORTUNITY THREAT
Significant Milestones
Years
1st july Canara Hindu Permanent Fund Ltd. formally registered with a
capital of 2000 shares of Rs.50/- each, with 4 employees.
1910 Canara Hindu Permanent Fund renamed as Canara Bank Limited
1969 14 major banks in the country, including Canara Bank, nationalized
on July 19
1976 1000th branch inaugurated
1983 Overseas branch at London inaugurated Cancard (the Banks credit
card) launched
1984 Merger with the Laksmi Commercial Bank Limited
1985 Commissioning of Indo Hong Kong International Finance Limited
1987 Canbank Mutual Fund & Canfin Homes launched
1989 Canbank Venture Capital Fund started
1989-90 Canbank Factors Limited, the factoring subsidiary launched
1992-93 Became the first Bank to articulate and adopt the directive principles
of Good Banking.
1995-96 Became the first Bank to be conferred with ISO 9002 certification
for one of its branches in Bangalore
2001-02 Opened a 'Mahila Banking Branch', first of its kind at Bangalore, for
catering exclusively to the financial requirements of women
clientele.
2002-03 Maiden IPO of the Bank