IILM Institute for Higher Education

School of Business

A Project Report

Management Information
System

(Canara Bank)
Sg-27, 28, Galleria, Dlf City Phase Iv, Gurgaon
SUBMITTED TO, SUBMITTED BY,
Ms. Priyanka Kapoor Kulgourav Singh
Mohinder Singh
Swapnil Verma
Vivek Verma
Yogendra Meena
 Acknowledgement

Success comes to those who struggle for it. To achieve one’s goal, one puts in a lot of hard
work and efficiency. In this process, one takes all the encouraging and helping hands of the
people. We take this opportunity to express our profound sense of gratitude to the support
given by Ms. Priyanka Kapoor (Assistant Professor, Department of Information Technology,
IILM Institute for Higher Education, Gurgaon) who provided us excellent guidance, constant
advice and granting personal freedom in the course of this work.

We owe our regards to IILM Institute for Higher Education, from where we have learnt the
basics and where informal discussions and able guidance was a beacon light for us.

And of course without the support and love of our family we would not be able to do this
work.
 Table of Contents

Acknowledgement…………………………………………………..I

1. History of Canara Bank

2. Profile of Canara Bank
3. Management Information System
4. MIS in banks
5. Problems and Solutions
6. MIS in Canara Bank

References
 History: CANARA BANK

Canara Bank was founded as the '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
nationalization.

"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.

Founding Principles:

1. To remove Superstition and ignorance.

2. To spread education among all to sub-serve the first principle.
3. To inculcate the habit of thrift and savings.
4. To transform the financial institution not only as the financial heart of the community
but the social heart as well.
5. To assist the needy.
6. To work with sense of service and dedication.
7. To develop a concern for fellow human being and sensitivity to the surroundings with
a view to make changes/remove hardships and sufferings.

Sound founding principles, enlightened leadership, unique work culture and remarkable
adaptability to changing banking environment have enabled Canara Bank to be a frontline
banking institution of global standards.
 Profile: CANARA BANK
Widely known for customer centricity, Canara Bank was founded by Shri Ammembal Subba
Rao Pai, a great visionary and philanthropist, in July 1906, at Mangalore, then a small port in
Karnataka. The Bank has gone through the various phases of its growth trajectory over
hundred years of its existence. Today, Canara Bank occupies a premier position in the comity
of Indian banks. With an unbroken record of profits since its inception, Canara Bank has
several firsts to its credit. These include:

 Launching of Inter-City ATM Network

 Obtaining ISO Certification for a Branch

 Articulation of ‘Good Banking’ – Bank’s Citizen Charter

 Commissioning of Exclusive Mahila Banking Branch

 Launching of Exclusive Subsidiary for IT Consultancy

 Issuing credit card for farmers

 Providing Agricultural Consultancy Services

As at September 2009, the Bank has further expanded its domestic presence, with 2802
branches spread across all geographical segments. Keeping customer convenience at the
forefront, the Bank provides a wide array of alternative delivery channels that include over
2000 ATMs- one of the highest among nationalized banks- covering 715 centres, 1591
branches providing Internet and Mobile Banking (IMB) services and 2084 branches offering
'Anywhere Banking' services. Under advanced payment and settlement system, all branches
of the Bank have been enabled to offer Real Time Gross Settlement (RTGS) and National
Electronic Funds Transfer (NEFT) facilities.

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 "Global Bank with Best Practices". This justifiable belief is founded on strong
fundamentals, customer centricity, enlightened leadership and a family like work culture.
 Management Information System (MIS)
A management information system (MIS) is a subset of the overall internal controls of a
business covering the application of people, documents, technologies, and procedures by
management accountants to solve business problems such as costing a product, service or a
business-wide strategy. Management information systems are distinct from regular
information systems in that they are used to analyze other information systems applied in
operational activities in the organization.[1] Academically, the term is commonly used to refer
to the group of information management methods tied to the automation or support of human
decision making, e.g. Decision Support Systems, Expert systems, and Executive information
systems.

It has been described as, "MIS 'lives' in the space that intersects technology and business.
MIS combines tech with business to get people the information they need to do their jobs
better/faster/smarter. Information is the lifeblood of all organizations - now more than ever.
MIS professionals work as systems analysts, project managers, systems administrators, etc.,
communicating directly with staff and management across the organization."
 Management Information System in Banks
Based on the norms worked out by Rangarajan Committee (II), 7827 branches of the Public
Sector banks were identified for full branch computerization up to March 2000 of which
around 4620 were computerized as on March 99. Meanwhile, the networking of the already-
computerized branches also assumed urgency and some of the Banks have started inter-
connecting their computerized branches using leased telephone lines or Very Small Aperture
Terminals (VSATS). This is meant to provide a more comprehensive service to customers
and at the same time give banks better centralized control over the branch operations. As of
now, New Private Sector and Foreign Banks have an edge over Public Sector Banks as far as
implementation of technological solutions is concerned. However, the latter are in the process
of making huge investments in technology.

Services and products like "Anywhere Banking" "Tele-Banking" "Internet banking" "Web
Banking" , e-banking, e-commerce, e-business etc. have become the Buzzwords of the day
and the Banks are trying to cope with the competition by offering innovative and attractively
packaged technology-based services to their customers.

Simultaneously, the importance of effective MIS for control of operations and of maintaining
customer and business/industry data bases for strategic planning has also surfaced; while
Banks are looking at Data warehousing, Data mining, Business Restructuring etc. as most
essential things to have as early as possible, they are taking urgent steps to computerize the
operations in their administrative and controlling offices (viz. head /zonal/regional offices) as
well as the data collection machinery, so as to evolve an effective MIS. In this phase, the new
communication revolution sweeping the nation and the world has come in extremely handy,
as the communication infrastructure has improved significantly and the Internet technologies
are available to network branches at a relatively low and affordable cost with a high degree of
reliability. The present level of MIS covers, basically, information needed for control,
performance monitoring, decision making etc. and encompasses most activities in
administrative offices like processing of statutory returns under Reserve Bank of India Act,
monthly/quarterly performance reports from branches, credit information/BSR, inter-branch
transactions, personnel inventory, provident fund accounting, profit and loss accounts, cash
and investment management, stationery stock accounting, and branch housekeeping etc.
 Problems and Solutions
1. Previously, opening of a simple account in a public bank was done through
registration of name and address of a person in whose name account has to be opened
but it leaded to serious problems like if some frauds were encountered or some kind
of mishandling of the account took place, the banks were not able to find out the
person with ease, and the identity of that very person was hard to detect as valid. So to
reduce these kinds of acts and practices, new system had been incorporated by the
government.

According to that new system, four things were made mandatory/compulsory to submit to
open an account in a bank; those were:

a) Photograph
b) Address proof
c) PAN no. or Farm 60/61
d) Introduction by a person having account with the branch/bank satisfactory run for
last 12 months.

These things helped a lot to recognize a person’s identity.

2. Second problem encountered was, when the bank needs some of the personal
mandatory information and optional information regarding the customers for the
account handling, for the offers to be made and other services, there was no pool of
data in which the information was stored during the routine transactions, so for this
problem and due to changing scenario, databases came to scene to have a full detailed
description of each and every customer with their details. These databases were then
referred as when required.

3. Third problem was to handle the handmade databases as the customers increased and
their transactions, so this system of manmade databases was took over by the IT and
online transactions started through e-banking/internet banking and online database
system was incorporated.
4. There was a 4-tier system in Canara Bank as per the structure. There were four levels
known as:
a) Branch offices
b) Regional offices
c) Circle offices
d) Head office

All the information is reached through statements and documents to the head office covering
all the channels from the branch office. And there at the head office, the final decisions were
taken for the new offers, services and any changes etc.

But this system faced two major problems, those were:

 a) Time management
b) Complexity

So, in order to make the faster and reliable work flow, regional level was eliminated and then
the system became 3-tier.
 Management Information System in Canara Bank
Through effective MIS, control of operations and maintaining customer and
business/industry data bases for strategic planning has surfaced; while Banks are looking at
Data warehousing, Data mining, Business Restructuring etc. as most essential things to have
as early as possible, they are taking urgent steps to computerize the operations in their
administrative and controlling offices (viz. head /zonal/circle/branch offices) as well as the
data collection machinery, so as to evolve an effective MIS.

Then there came a CORE BANKING SOLUTION (CBS) system in Canara Bank. CBS is
networking of branches, which enables Customers to operate their accounts, and avail
banking services from any branch of the Bank on CBS network, regardless of where he
maintains his account. The customer is no more the customer of a Branch. He becomes the
Bank’s Customer. Thus CBS is a step towards enhancing customer convenience through
anywhere and anytime banking. i-flex solutions and IBM have announced the successful
implementation of a Core Banking Solution at Canara Bank with a smooth 'go live' of the
1000th branch on Oracle's FLEXCUBE - one of the leading core banking solutions. The
1000th branch to go live with the core banking solution was the Karaikudi branch, located in
Tamil Nadu.

As part of its modernization effort, Canara Bank had chosen IBM India and i-flex solutions to
implement Oracle's FLEXCUBE across the major branches of the bank. With the launch of
the core banking solution at Karaikudi, 75 percent of Canara Bank's retail and corporate
business will now be handled by Oracle's FLEXCUBE.

The core banking roll out at Canara Bank is among the largest implementations based on a
centralized architecture and involves all modules of Oracle's FLEXCUBE, including
agricultural loans, foreign exchange and service branch functionality.

The centralized core banking system will enable efficient and personalized customer service,
24x7 banking through multiple delivery channels, faster time-to-market and superior
relationship management at the bank. It will allow customers to transfer funds electronically,
make on-line railway reservations and make payments of direct taxes, excise and customs
duty. The solution offers a loan application processing system for faster loan processing and
enables depository Services and on-line trading services for Canara Bank's clients.

This solution will help Canara Bank meet the challenges of a dynamically changing
environment. Operationally, the bank will be able to monitor the fees it charges centrally,
alter the interest rates across its operations and generate reports centrally. The design of the
implementation reduces software distribution complexities as all major operations are
managed centrally through a central data centre. Commenting on the partnership, Shanker

Annaswamy, managing director, IBM India/ South Asia said, "IBM is committed to
delivering value to Canara Bank and its customers to leverage technology for high-impact
convenience banking services".

The following facilities are available on-line to the users of Internet & Mobile Banking under
CBS.

 View/Query/Print of account summary, unclear funds, account

details and transaction details of all Operative accounts.
 Term Deposit Interest calculator (Modeling)
 View/Print of Loan accounts details, Loan Repayment and view of
Loan Account transaction details
 Loan EMI / Term Calculator (Modeling)
 Funds transfer between your own accounts and Third party
account
 Online Excise/Service Tax payment
 Initiation / Modification / View / Deletion of Standing instructions
 Facility to request for account transaction statement for a
particular range based on dates, amounts, only debits or credits.
 Request for issue of cheque book
 Request for issue Demand Draft and Bankers Cheque
 Stop payment request
 Status of issued Cheque book or cheque inquiry.
 Inquiry on Deposit and Loan interest rates.
 View Bulletins posted by the Bank
 Mail Box option to contact Bank’s Admin
 Pending Activities list to know count of unread mail / Bulletins /
alerts
 Facility to update customer profile.
 Facility to change password
Net-Banking is the Internet Banking service provided by Canara Bank in Core Banking
Branches. Net-Banking Retail is a part of Internet-Banking tailor made specifically for retail
customers. Two different sites for corporate banking and retail banking have been formed.

Net-Banking: Features

a) Accounts Summary can be seen.

b) Account Details can be seen.

c) Online Bill Payments schedule

d) Online Requests can be registered

e) Account Activity can be seen

f) Term Deposits are pooled and that can be easily viewed.

g) Online Enquiries can be made.

h) Loan Accounts information can be retrieved.

i) Funds transfer online.

 References

1. Canara Bank Internet Banking/www.canarabank.in

2. Canara Bank/www.canarabank.com

3. Personal Assistance/Manager of Canara bank

4. MIS/en.wikipedia.org/wiki/Management_information_system