A FINANCIAL STUDY OF ICICI BANK LATUR.

The History of banking in India dates back to the early half of the 18th century. 3
Presidency Banks that were established in the country namely the Bank of Hindustan, Bank of
Madras and Bank of Bombay can also be referred to as some of the oldest banking institutions
in the country. The State Bank of India that was earlier known as the Bank of Bengal is also
one of the oldest in the genre. To know about the types of banks in India, it is necessary that
we first comprehend the banking system so as to be able to distinguish about its various
types.

Types of banks

All types of Banks in India are regulated and the activities

monitored by a standard bank called the Reserve Bank of India
that stands at the apex of the banking structure. It is also
called the Central Bank, as major banking decisions are taken
at this level. The other types of banks in India are placed
below this bank in the hierarchy.

The major types of banks in India are as follows:

Public sector banks in India - All government owned banks

fall in this variety. Besides the Reserve Bank of India, the
State Bank of India and its associate banks and about 20
nationalized banks, all comprises of the public sector banks.
Many of the regional rural banks that are funded by the
government banks can also be clubbed in this genre.

Private sector banks in India - A new wave in the banking

industry came about with the private sector banks in India.
With policies on liberalization being generously taken up, these
private banks were established in the country that also
contributed heavily towards the growth of the economy and
also offering numerous services to its customers. Some of the
most popular banks in this genre are: Axis Bank, Bank of
Rajasthan, Catholic Syrian Bank, Federal Bank, HDFC Bank,
ICICI Bank, ING Vysya Bank, Kotak Mahindra Bank and SBI
Commercial and International Bank. The Foreign Banks in
India like HSBC, Citibank, and Standard Chartered bank etc
can also be clubbed here.
Cooperative banks in India - With the aim to specifically
cater to the rural population, the cooperative banks in India
were set up through the country. Issues like agricultural credit
and the likes are taken care of by these banks.

Commercial Banks in India

Commercial Banks in India are broadly categorized into Scheduled Commercial Banks and Unscheduled
Commercial Banks. The Scheduled Commercial Banks have been listed under the Second Schedule of the
Reserve Bank of India Act, 1934. The selection measure for listing a bank under the Second Schedule was
provided in section 42 (60 of the Reserve Bank of India Act, 1934.

The History of Commercial Banks in India

By Sara Kirchheimer, eHow Contributor
Ancient Indian writings mention banking practiced by Vaishya, the merchants and
landowners, who are ranked third of four among the castes. By the time of Buddha, circa 500
BCE, even top-ranked Brahmins were involved in banking. After economic liberalization in
the 1990s, more than 50 major domestic and foreign commercial banks operate in India, as
well as many state-owned banks, co-op banks and smaller commercial banks. Post
liberalization, state-run banks are divesting government capital.

East India Company

o In 1786, British East India Company's employees in Calcutta formed India's
first corporate venture, the General Bank. Calcutta was the capital of British
India. By 1790, the Bengal Bank operated for Europeans in the same market.
Both banks had local officers and corporate board management structure. In
1791, General Bank became General Bank of India, but India's early banks
had difficulties branching. When possible, local boards were formed in
branch cities. More often, branches opened under an appointed manager
who received a commission on profits.

Punjab Bank
o An act to allow formation of "joint stock" banks as limited liability corporations
passed in 1860. By 1863, the Punjab Bank was the first native Indian bank,
formed at Rawul Pindee by Punjabi Hindus, with branches in Peshawur,
Mooltan and Poona. It was capitalized at 5 million rupees by 5,000 shares
sold at 100 rupees each. In 1891, the Calcutta Review noted that this bank
had long been "wound up" (closed).

Presidency Banks
o After 1766, the East India Company's Calcutta administration was known as
the Bengal Presidency. The Banks of Bengal, Bombay and Madras,
 established from 1809 to 1843, were Presidency Banks, which was 20
percent government owned. Treasury deposits were their largest
capitalization. By 1835, "chartered" Presidency banks standardized national
currency, and "unchartered" commercial banks lost their regional currency
exchange income. In 1861, currency issue became the exclusive right of
government. In 1862, Presidency banks entered an agreement to distribute
currency, receiving treasury deposits at any place where they would open
branches.

Privatization
o By 1876, each Presidency bank had about 15 branches, meeting the needs
of main commerce centers. That year, the Presidency banks were privatized.
Treasury reserves were established for government funds. Government
could loan treasury funds, but the banks had no right to those funds. Without
government deposits to capitalize new branches, expansion slowed. The
Presidency banks became the main financiers for the industrial growth of
India in the next three decades.

Nationalization
o The Presidency banks merged in 1921 to form the Imperial Bank of India, a
commercial bank that acted as a government bank until the establishment of
the Reserve Bank of India in 1935. After that year, the Imperial Bank
continued to act as a central bank for other banks, and was an agent for the
Reserve Bank at some locations. After India's independence from Britain, the
Imperial Bank was not immediately responsive to development needs in rural
areas. In 1955, Parliament established the State Bank of India, which
included the nationalized assets of the Imperial Bank.

List of Commercial Banks in India

SBI & Associates:

• State Bank of India

• State Bank of Bikaner & Jaipur
• State Bank of Hyderabad
• State Bank of Indore
• State Bank of Mysore
• State Bank of Patiala
• State Bank of Travancore

Nationalised Banks:

• Allahabad Bank
• Andhra Bank
• Bank of Baroda
 • Bank of India
• Bank of Maharashtra
• Canara Bank
• Central Bank of India
• Corporation Bank
• Dena Bank
• IDBI Bank Ltd.
• Indian Bank
• Indian Overseas Bank
• Oriental Bank of Commerce
• Punjab & Sind Bank
• Punjab National Bank
• Syndicate Bank
• UCO Bank
• Union Bank of India
• United Bank of India
• Vijaya Bank

Foreign Banks:

• ABN Amro Bank

• Abu Dhabi Commercial Bank
• American Express Banking Corporation
• Antwerp Diamond Bank
• AB Bank
• Bank International Indonesia
• Bank of America
• Bank of Bahrain & Kuwait
• Bank of Ceylon
• Bank of Nova Scotia
• Bank of Tokyo Mitsubishi UFJ
• Barclays Bank
• BNP Paribas
• Calyon Bank
• Chinatrust Commercial Bank
• Citibank
• DBS Bank
• Deutsche Bank
• Hongkong & Shanghai Banking Corporation
• JP Morgan Chase Bank
• JSC VTB Bank
• Krung Thai Bank
• Mashreq Bank
• Mizuho Corporate Bank
• Oman International Bank
• Shinhan Bank
• Societe Generale
 • Sonali Bank
• Standard Chartered Bank
• State Bank of Mauritius
• UBS AG

Other Scheduled Commercial Banks:

• Axis Bank
• Bank of Rajasthan
• Catholic Syrian Bank
• City Union Bank
• Development Credit Bank
• Dhanalakshmi Bank
• Federal Bank
• HDFC Bank
• ICICI Bank
• IndusInd Bank
• ING Vysya Bank
• Jammu & Kashmir Bank
• Karnataka Bank
• Karur Vysya Bank
• Kotak Mahindra Bank
• Lakshmi Vilas Bank
• Nainital Bank
• Ratnakar Bank
• SBI Commercial & International Bank
• South Indian Bank
• Tamilnad Mercantile Bank
• Yes Bank

Private Banks in India

Initially all the banks in India were private banks, which were founded in the pre-independence era to cater
to the banking needs of the people. In 1921, three major banks i.e. Banks of Bengal, Bank of Bombay, and
Bank of Madras, merged to form Imperial Bank of India. In 1935, the Reserve Bank of India (RBI) was
established and it took over the central banking responsibilities from the Imperial Bank of India, transferring
commercial banking functions completely to IBI. In 1955, after the declaration of first-five year plan, Imperial
Bank of India was subsequently transformed into State Bank of India (SBI).

Following this, occurred the nationalization of major banks in India on 19 July 1969. The Government of
India issued an ordinance and nationalized the 14 largest commercial banks of India, including Punjab
National Bank (PNB), Allahabad Bank, Canara Bank, Central Bank of India, etc. Thus, public sector banks
revived to take up leading role in the banking structure. In 1980, the GOI nationalized 6 more commercial
banks, with control over 91% of banking business of India.

In 1994, the Reserve Bank Of India issued a policy of liberalization to license limited number of private
banks, which came to be known as New Generation tech-savvy banks. Global Trust Bank was, thus, the first
private bank after liberalization; it was later amalgamated with Oriental Bank of Commerce (OBC). Then
Housing Development Finance Corporation Limited (HDFC) became the first (still existing) to receive an 'in
principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector.

At present, Private Banks in India include leading banks like ICICI Banks, ING Vysya Bank, Jammu &
Kashmir Bank, Karnataka Bank, Kotak Mahindra Bank, SBI Commercial and International Bank, etc.
Undoubtedly, being tech-savvy and full of expertise, private banks have played a major role in the
development of Indian banking industry. They have made banking more efficient and customer friendly. In
the process they have jolted public sector banks out of complacency and forced them to become more
competitive.

Major private banks in India are:

Bank of Rajasthan
A leading private sector bank, the Bank of Rajasthan was founded on the auspicious day of Akshya Tritiya
on May 8, 1943, at Udaipur. Shri Rai Bahadur P.C. Chatterji, the then finance minister of the erstwhile
Mewar Government, extensively contributed towards the establishment of the Bank.

Catholic Syrian Bank

With the Swadeshi Movement of early 20th century as its base, Catholic Syrian Bank was incorporated on
26th November 1920, in the Thrissur district of Kerala. The bank commenced its operations on 1st January
1921, with an authorized capital of Rs. 5 lakhs and a paid up capital of Rs. 45270.

Dhanalakshmi Bank
The foundation of Dhanalakshmi Bank Limited was laid down on 14th November 1927, in the Thrissur
district of Kerala. A group of innovative entrepreneurs had started the bank with a capital of Rs.11,000 and
only 7 employees.

Federal Bank
Federal Bank Limited was founded as Travancore Federal Bank Limited in the year 1931, with an authorized
capital of Rs. 5000. It was established at Nedumpuram, a place near Tiruvalla, in Central Travancore (a
princely state later merged into Kerala), under Travancore Company's Act.

HDFC Bank
Housing Development Finance Corporation Limited, more popularly known as HDFC Bank Ltd, was
established in the year 1994, as a part of the liberalization of the Indian Banking Industry by Reserve Bank
of India (RBI). It was one of the first banks to receive an 'in principle' approval from RBI, for setting up a
bank in the private sector.

ICICI Bank
ICICI Bank started as a wholly owned subsidiary of ICICI Limited, an Indian financial institution, in 1994.
Four years later, when the company offered ICICI Bank's shares to the public, ICICI's shareholding was
reduced to 46%. In the year 2000, ICICI Bank offered made an equity offering in the form of ADRs on the
New York Stock Exchange (NYSE)

ING Vysya Bank

ING Vysya Bank Ltd came into being in October 2002, when erstwhile Vysya Bank Ltd was merged with
ING, a global financial powerhouse boasting of Dutch origin. Vysya Bank Ltd, one of initial banks to be set
up in the private sector of India

Jammu & Kashmir Bank

The origin of Jammu and Kashmir Bank Limited, more commonly referred to as J&K Bank, can be traced
back to the year 1938, when it was established as the first state-owned bank in India. The bank was
incorporated on 1st October 1938 and it was in the following year (more precisely on 4th July 1939) that it
commenced its business, in Kashmir (India).

Karnataka Bank
Karnataka Bank Limited is a leading private sector bank in India. It was incorporated on 18th February 1924
at Mangalore, a town located in the Kannada district of Karnataka. The bank emerged as a major player
during the freedom movement of 20th Century India.

Karur Vysya Bank

The Karur Vysya Bank Limited commonly known as KVB was set up by Late Shri M.A. Venkatarama
Chettiar and the Late Shri Athi Krishna Chettiar, the two great visionaries in 1916 in Karur, a textile town in
the Tamil Nadu state of India.

Kotak Mahindra Bank

Kotak Mahindra Bank is one of India's leading financial private banking institutions. It offers banking
solutions that covers almost every sphere of life. Some of its financial services include commercial banking,
stock broking, mutual funds, life insurance and investment banking.

SBI Commercial and International Bank

SBI Commercial and International Bank, (SBICI) is a completely owned private auxiliary of India's biggest
banking and financial services set up, the State Bank of India. Established in 1995 to back SBI's corporate
and international banking services, the SBI Commercial and International Bank is the only bank in India to
be been awarded ISO-9002 quality systems certification for the Bank as a whole

UTI Bank
Axis Bank was formed as UTI when it was incorporated in 1994 when Government of India allowed private
players in the banking sector. The bank was sponsored together by the administrator of the specified
undertaking of the Unit Trust of India, Life Insurance Corporation of India (LIC) and General Insurance
Corporation ltd.

YES Bank
Yes Bank is one of the top most private Indian banks. Awarded by the only Greenfield license award by RBI
in last 14 years, this bank is established and run by Rana Kapoor and Ashok Kapur with the financial
support of Rabobank Nederland, the world's single AAA rated private Bank.

Public sector Nationalised Banks in India

Nationalised banks dominate the banking system in India. The history of nationalised banks in India dates
back to mid-20th century, when Imperial Bank of India was nationalised (under the SBI Act of 1955) and re-
christened as State Bank of India (SBI) in July 1955. Then on 19th July 1960, its seven subsidiaries were
also nationalised with deposits over 200 crores. These subsidiaries of SBI were State Bank of Bikaner and
Jaipur (SBBJ), State Bank of Hyderabad (SBH), State Bank of Indore (SBIR), State Bank of Mysore (SBM),
State Bank of Patiala (SBP), State Bank of Saurashtra (SBS), and State Bank of Travancore (SBT).

However, the major nationalisation of banks happened in 1969 by the then-Prime Minister Indira Gandhi.
The major objective behind nationalisation was to spread banking infrastructure in rural areas and make
cheap finance available to Indian farmers. The nationalised 14 major commercial banks were Allahabad
Bank, Andhra Bank, Bank of Baroda, Bank of India, Bank of Maharashtra, Canara Bank, Central Bank of
India, Corporation Bank, Dena Bank, Indian Bank, Indian Overseas Bank, Oriental Bank of Commerce
(OBC), Punjab and Sind Bank, Punjab National Bank (PNB), Syndicate Bank, UCO Bank, Union Bank of
India, United Bank of India (UBI), and Vijaya Bank.

In the year 1980, the second phase of nationalisation of Indian banks took place, in which 7 more banks
were nationalised with deposits over 200 crores. With this, the Government of India held a control over 91%
of the banking industry in India. After the nationalisation of banks there was a huge jump in the deposits and
advances with the banks. At present, the State Bank of India is the largest commercial bank of India and is
ranked one of the top five banks worldwide. It serves 90 million customers through a network of 9,000
branches.
List of Public Sector Banks in India is as follows:

• Allahabad Bank
• Andhra Bank
• Bank of Baroda
• Bank of India
• Bank of Maharashtra
• Canara Bank
• Central Bank of India
• Corporation Bank
• Dena Bank
• Indian Bank
• Indian Overseas Bank
• Oriental Bank of Commerce
• Punjab and Sind Bank
• Punjab National Bank
• State Bank of Bikaner & Jaipur
• State Bank of Hyderabad
• State Bank of India (SBI)
• State Bank of Indore
• State Bank of Mysore
• State Bank of Patiala
• State Bank of Saurashtra
• State Bank of Travancore
• Syndicate Bank
• UCO Bank
• Union Bank of India
• United Bank of India
• Vijaya Bank
• IDBI Bank

Co-operative Bank

The Co-operative Bank has claimed that the number of repossessions it makes is lower than the
industry average.

According to the bank, the Council of Mortgage Lenders estimates that the number of
repossessions for 2009 will increase by 67 per cent, meaning some 175,000 people stand to lose
their homes.

The Co-operative Bank's figures show that it was involved in just eight repossessions last year.
This represents a fall of 50 per cent compared with 2007 and accounts for less than one per cent
of the bank's mortgage book.

Terry Jordan, head of mortgages at the Co-operative Bank, said: "Our responsible approach to
lending has also resulted in a strong mortgage book as we believe in only lending to people what
they are able to afford."

The Co-operative Bank prides itself on its ethical lending and borrowing policies. As a co-
operative, it is owned entirely by its members.

Cooperative Banks in India

The Co operative banks in India started functioning almost 100 years ago. The Cooperative bank is an
important constituent of the Indian Financial System, judging by the role assigned to co operative, the
expectations the co operative is supposed to fulfil, their number, and the number of offices the cooperative
bank operate. Though the co operative movement originated in the West, but the importance of such banks
have assumed in India is rarely paralleled anywhere else in the world. The cooperative banks in India plays
an important role even today in rural financing. The businessess of cooperative bank in the urban areas also
has increased phenomenally in recent years due to the sharp increase in the number of primary co-
operative banks.

Co operative Banks in India are registered under the Co-operative Societies Act. The cooperative bank is
also regulated by the RBI. They are governed by the Banking Regulations Act 1949 and Banking Laws (Co-
operative Societies) Act, 1965.

Cooperative banks in India finance rural areas under:

• Farming
• Cattle
• Milk
• Hatchery
• Personal finance

Cooperative banks in India finance urban areas under:

 • Self-employment
• Industries
• Small scale units
• Home finance
• Consumer finance
• Personal finance

Some facts about Cooperative banks in India

• Some cooperative banks in India are more forward than many of the state and private sector
banks.

• According to NAFCUB the total deposits & lendings of Cooperative Banks in India is much more
than Old Private Sector Banks & also the New Private Sector Banks.

• This exponential growth of Co operative Banks in India is attributed mainly to their much better
local reach, personal interaction with customers, their ability to catch the nerve of the local clientele.

Foreign Banks In India

Foreign Banks in India always brought an explanation about the prompt services to customers. After the set
up foreign banks in India, the banking sector in India also become competitive and accurative.

New rules announced by the Reserve Bank of India for the foreign banks in India in this budget has put up
great hopes among foreign banks which allows them to grow unfettered. Now foreign banks in India are
permitted to set up local subsidiaries. The policy conveys that forign banks in India may not acquire Indian
ones (except for weak banks identified by the RBI, on its terms) and their Indian subsidiaries will not be able
to open branches freely. Please see the list of Foreign banks in India till date.

Foreign banks have brought latest technology and latest banking practices in India. They have helped made
Indian Banking system more competitive and efficient. Government has come up with a road map for
expansion of foreign banks in India.

The road map has two phases. During the first phase between March 2005 and March 2009, foreign banks
may establish a presence by way of setting up a wholly owned subsidiary (WOS) or conversion of existing
branches into a WOS. The second phase will commence in April 2009 after a review of the experience
gained after due consultation with all the stake holders in the banking sector. The review would examine
issues concerning extension of national treatment to WOS, dilution of stake and permitting
mergers/acquisitions of any private sector banks in India by a foreign bank.

List of Foreign Banks in India

• ABN-AMRO Bank
• Abu Dhabi Commercial Bank
 • Bank of Ceylon
• BNP Paribas Bank
• Citi Bank
• China Trust Commercial Bank
• Deutsche Bank
• HSBC
• JPMorgan Chase Bank
• Standard Chartered Bank
• Scotia Bank
• Taib Bank

By the year 2009, the list of foreign banks in India is going to become more quantitative as number of foreign
banks are still waiting with baggage to start business in India.

State Bank highlights importance of

private sector role in infrastructure
development

Karachi: Deputy Governor, State Bank of Pakistan, Muhammad Kamran Shehzad

highlighted role of private sector in development of infrastructure in the country as
public sector alone cannot fulfill responsibility of removing infrastructure deficiency.
He was inaugurating Training Program on Frontiers in Infrastructure Finance
organized by SBP & World Bank Tuesday at SBP, Karachi. It is joint initiative of SBP
Infrastructure & Housing Finance Department & World Bank Group to address lack of
expertise in financial sector on project development and financing.
He said importance of private sector is extremely critical for success of any policy initiative in
way of infrastructure development. Currently role of private sector is limited to projects in
energy sector in form of Independent Power Producers IPPs. Success of energy sector in
attracting private capital was due to a policy of federal government which provided sovereign
guarantees that led to opening up of avenues for private sector. He said banking sector,
together with DFIs has outstanding portfolio of Rs 284 billion in overall infrastructure sector,
of which staggering 68% is in power sector alone. Other key areas like Oil & Gas exploration,
Petroleum and Roads are not getting much financing and performance of DFIs is very
disappointing, with only 2% share in overall portfolio. A study mentions that if a country
wants to attain a 7% GDP growth, then it has to invest 7% of its GDP in infrastructure
development, he said. This scenario called for some concrete steps towards infrastructure
development. SBP recognizing pivotal role for private sector participation in infrastructure
development formed an Infrastructure Task Force inviting participation from key public,
private sector stakeholders.
Task Force was mandated to identify obstacles to development of infrastructure in general
and infrastructure finance in particular and propose viable ways for effective private sector
participation, he said. One of principal recommendations was establishment of a dedicated
institution, which not only provides financing solutions but also develops infrastructure
projects to attract private sector under Public Private Partnership (PPP) mode. He said
proposed dedicated institution, being established with help of Government and multilateral
agencies, will have a mandate of developing and financing projects in key infrastructure
areas and expected to be active later next year. Kamran said SBP is also supporting human
resources development, institutional strengthening and capacity building in infrastructure
sector. Object of training program is to address capacity gaps in infrastructure financing and
have a fairly good number of professionals, who are proficient in undertaking project
financing for infrastructure sectors which entail a complicated structure under Public Private
Partnership (PPP) mode.

Objectives of the bank

Promoting price stability in the euro area

The Bank promotes price stability in the euro area through participation by the Governor in
the Governing Council of the European Central Bank (ECB). For this purpose the Bank
conducts economic analysis and research. The Bank is also responsible for the
implementation in Malta of the Governing Council's monetary policy decisions.

Contributing to the stability of the financial system

The Bank contributes to the stability of the financial system through ongoing macro
surveillance of the infrastructure, financial institutions and markets and by monitoring and
assessing the implications for financial stability of economic and financial developments,
both domestically and in the euro area. As part of its early warning system, the Bank
analyses data to identify sources of risk and tests the resilience of the financial sector to
withstand eventual shocks. This approach is supported by the development of a sound
framework for the management of crisis situations and of contingency procedures.
Ultimately, in order to safeguard financial stability, the Bank acts as lender of last resort.

Promoting, regulating and overseeing sound and efficient payment and securities
settlement systems

The Bank promotes, oversees and regulates the operation of, and the participation in,
domestic payment systems as well as any form of cash or security transactions, whether
domestic or cross-border. This role relates both to retail and wholesale payment systems,
including the instruments used, and involves the establishment of policy and the monitoring
of payment and securities settlement developments. In exercising its oversight role, the
Bank promotes a competitive, safe and efficient payment services environment.

Supporting the development of financial markets

The Bank promotes and supports the further development of the domestic financial market
with the aim of facilitating its smooth and effective integration into the Pan-European
market.

Providing and promoting efficient currency services

The Bank issues euro bank notes and coins in accordance with the Treaty on the
Functioning of the European Union and in line with the Statute of the European System of
Central Banks (ESCB) and of the ECB. The Bank is responsible for providing notes and coins
to meet demand from the public. The Bank also ensures the authenticity and quality of
currency in circulation through the withdrawal of counterfeit and damaged notes and coins.

Optimising the returns on financial assets through prudent investment practices

The Bank holds and manages a portfolio of foreign and domestic financial assets. It seeks
to maximise the return on financial assets subject to prudent investment practices. The
Bank is also responsible for managing its share of the pooled portion of the ECB's own
foreign reserves.

Collecting, compiling, disseminating and publishing statistics

The Bank compiles economic and financial statistics in accordance with international
standards. These are provided to the ESCB and other international and domestic users.
Statistics are made available through the Bank's regular publications, its website, the
publications of the ECB and other international organisations.

Advising the Government generally on financial and economic matters

 The Bank acts as an advisor to the Government on financial and economic matters. In
offering independent advice, the Bank contributes to sound policy-making. The Bank is able
to do this on the strength of its expertise, its reputation and its independent status. The
Bank also acts as banker and agent to the Government.

In support of the above objectives, the Bank commits itself:

(a) to actively participate in the Eurosystem, the ESCB and other relevant European Union bodies,
including their sub-structures, and in meetings of international organisations; and
(b) to maintain effective support and control functions, which include:

• Motivating and developing skilled staff. To this end the Bank adopts appropriate recruitment
and reward strategies and provides its staff with opportunities for training and
development.

• Procuring the necessary resource inputs and maintaining the organisation's physical
infrastructure in a cost-effective manner to ensure a congenial and secure working
environment.

• Maintaining a sound financial control system capable of delivering accurate and timely
statutory and management information and designed to ensure that the Bank's needs are
effectively met within established budgets.

• Enhancing the flow of information both within and outside the Bank. This is made possible
through the sustained development of information and document-handling systems, and of
the appropriate information technology infrastructure.

• Maintaining a risk management framework which provides a common methodology for the
identification, assessment, reporting, monitoring and treatment of risks. This is
complemented by a sound business continuity management programme.

• Operating an independent and objective assurance and consultancy function designed to

add value and improve the Bank's operations.

The Bank also seeks to be transparent and publicly accountable. This is achieved through
the publication of its financial statements, effective communications and announcements
through its website, other publications and regular reporting to Parliament on its policies
and operations.

The principal object of the Bank will be to promote the interests of all its members to attain
their social and economic betterment through self-help and mutual aid in accordance with the
Co-operative Principles.
The objects of the Bank shall be to engage in any one or more of the forms of business
enumerate in Section 6 as amended by Section 56 of the Banking Regulation Act, 1949 and in
particular to carry out the following forms of business:
• To do banking business on Co-operative Principles by accepting for the purpose of
lending or investment of deposits of money from members as well as the public, repayable on
demand or otherwise and withdrawable by cheque, draft, pay order or otherwise.
• To raise funds by issue of shares and/or any other securities as permitted by the
Regulatory Authority.
• To encourage thrift, self-help and co-operation among members.
• To prevent members from falling into permanent indebtedness and to assist them
financially in times of difficulty and to help them to get out of debt.
• To engage in any one or more of the following forms of business namely:
(i) The borrowing, raising or taking up of money;
(ii) The lending or advancing of money to members either upon or without security;
(iii)The drawing, making, accepting, discounting, buying, selling, collecting and dealing in bills
of exchange, hundies, promissory notes, coupons, drafts, bills of lading, railway receipts,
warrants, certificates, scrips and other instruments and other securities whether transferable
or negotiable or not;
(iv)The granting and issuing of letters of credit, travellers` cheques and circular notes and to
do all forms of foreign exchange business;
(v) The buying, selling and dealing in bullion and species on behalf of member customers;
(vi)The acquiring, holding, issuing on commission, underwriting and dealing in stock, funds,
shares, debentures, debenture stock, bonds, obligations, securities and investments of all
kinds;
(vii)The purchasing and selling of bonds, scrips of other forms of securities on behalf of
constituents or others, the negotiating of loans and advances.
(viii)The receiving of all kinds of bonds, scrips and valuables on deposit or for safe custody or
otherwise;
(ix)The providing of safe deposit vaults;
(x) The collecting and transmitting of money and securities;
(xi) Acquiring and holding and generally dealing with any property or any right, title or
interest in any such property which may form the security or part of the security for any loans
and advances or which may be connected with any such security;
(xii) Carrying on and transacting guarantee and indemnity business, on behalf of the
constituents in the ordinary course of banking business and to provide necessary cash margin
to facilitate such business;
(xiii) Opening Branches, Extension Counters and Sub-Officers or any Office and ATM centers
or to have arrangement of ATMs of other Banks etc. as per the norms of the Reserve Bank of
India.
(xiv) Subject to the previous approval of the Central Registrar establishing and supporting or
aiding in the establishment and support of associations, institutions, funds, trusts and
conveniences calculated to benefit members, employees, ex-employees of the bank or the
dependents or connections of such persons granting pensions and allowances and making
payments towards insurance, subscribing to or guaranteeing monies for charitable benevolent
object or for any exhibition or for any public, general or useful object;
(xv)Undertaking and executing trusts, undertaking the administration of estates as an
executor, trustee or otherwise, with the previous permission of the Central Registrar;
(xvi)The acquisition of land/buildings, construction, maintenance and alteration of any
land/building or works necessary or convenient for the purposes of the Bank;
(xvii) To act as Insurance Agent as per norms of RBI and IRDA;
(xviii)To promote one or more subsidiary institutions which may be registered under any law
for the time being in force for the furtherance of its stated objects;
(xix) Any other form of business which the Central or the State Governments may specify as a
form of business in which it is lawful for a banking institution to engage;
(xx) Doing all such other things as are incidental and conducive to the promotion or
advancement of the business of the Bank;
• To amalgamate with another Bank with same or similar objects;
• To engage in Credit/Debit cards;
• To do merchant banking business;
• To takeover another society with similar object;
• To develop market information system, logo brand promotion, quality control and
technology up gradation;
• To enter into participation, consortium arrangement with bank/s or financial
institutions with objects of making loans and advances;
• To act as agents for collection of moneys of various government quasi government and
statutory bodies.
Hypotheses
An hypothesis is a specific statement of prediction. It describes in concrete (rather than theoretical) terms

what you expect will happen in your study. Not all studies have hypotheses. Sometimes a study is designed

to be exploratory (see inductive research). There is no formal hypothesis, and perhaps the purpose of the

study is to explore some area more thoroughly in order to develop some specific hypothesis or prediction

that can be tested in future research. A single study may have one or many hypotheses.

Actually, whenever I talk about an hypothesis, I am really thinking simultaneously about two hypotheses.

Let's say that you predict that there will be a relationship between two variables in your study. The way we

would formally set up the hypothesis test is to formulate two hypothesis statements, one that describes your

prediction and one that describes all the other possible outcomes with respect to the hypothesized

relationship. Your prediction is that variable A and variable B will be related (you don't care whether it's a

positive or negative relationship). Then the only other possible outcome would be that variable A and

variable B are not related. Usually, we call the hypothesis that you support (your prediction)

the alternative hypothesis, and we call the hypothesis that describes the remaining possible outcomes

the null hypothesis. Sometimes we use a notation like HA or H1 to represent the alternative hypothesis or

your prediction, and HO or H0 to represent the null case. You have to be careful here, though. In some

studies, your prediction might very well be that there will be no difference or change. In this case, you are

essentially trying to find support for the null hypothesis and you are opposed to the alternative.

If your prediction specifies a direction, and the null therefore is the no difference prediction and the

prediction of the opposite direction, we call this a one-tailed hypothesis. For instance, let's imagine that

you are investigating the effects of a new employee training program and that you believe one of the

outcomes will be that there will be less employee absenteeism. Your two hypotheses might be stated

something like this:

The null hypothesis for this study is:

HO: As a result of the XYZ company employee training program, there will either be no significant difference

in employee absenteeism or there will be a significant increase.

which is tested against the alternative hypothesis:

HA: As a result of the XYZ company employee training program, there will be a significantdecrease in

employee absenteeism.

In the figure on the left, we see this situation illustrated graphically. The alternative hypothesis -- your

prediction that the program will decrease absenteeism -- is shown there. The null must account for the other

two possible conditions: no difference, or an increase in absenteeism. The figure shows a hypothetical

distribution of absenteeism differences. We can see that the term "one-tailed" refers to the tail of the

distribution on the outcome variable.

When your prediction does not specify a direction, we say you have a two-tailed hypothesis. For instance,

let's assume you are studying a new drug treatment for depression. The drug has gone through some initial

animal trials, but has not yet been tested on humans. You believe (based on theory and the previous

research) that the drug will have an effect, but you are not confident enough to hypothesize a direction and

say the drug will reduce depression (after all, you've seen more than enough promising drug treatments

come along that eventually were shown to have severe side effects that actually worsened symptoms). In

this case, you might state the two hypotheses like this:

The null hypothesis for this study is:

HO: As a result of 300mg./day of the ABC drug, there will be no significant difference in depression.
which is tested against the alternative hypothesis:

HA: As a result of 300mg./day of the ABC drug, there will be a significant difference in depression.

The figure on the right illustrates this two-tailed prediction for this case. Again, notice that the term "two-

tailed" refers to the tails of the distribution for your outcome variable.

The important thing to remember about stating hypotheses is that you formulate your prediction (directional

or not), and then you formulate a second hypothesis that is mutually exclusive of the first and incorporates

all possible alternative outcomes for that case. When your study analysis is completed, the idea is that you

will have to choose between the two hypotheses. If your prediction was correct, then you would (usually)

reject the null hypothesis and accept the alternative. If your original prediction was not supported in the data,

then you will accept the null hypothesis and reject the alternative. The logic of hypothesis testing is based on

these two basic principles:

• the formulation of two mutually exclusive hypothesis statements that, together, exhaust all possible

outcomes

• the testing of these so that one is necessarily accepted and the other rejected

OK, I know it's a convoluted, awkward and formalistic way to ask research questions. But it encompasses a

long tradition in statistics called the hypothetical-deductive model, and sometimes we just have to do
things because they're traditions. And anyway, if all of this hypothesis testing was easy enough so anybody

could understand it, how do you think statisticians would stay employed?

RESEARCH HYPOTHESIS
A research hypothesis is the statement created by researchers when they
speculate upon the outcome of a research or experiment.

Every true experimental design must have this statement at the core of its structure,
as the ultimate aim of any experiment.

The hypothesis is generated via a number of means, but is usually the result of a
process of inductive reasoning where observations lead to the formation of a theory.
Scientists then use a large battery of deductive methods to arrive at a hypothesis
that is testable, falsifiable and realistic.

The precursor to a hypothesis is a research problem, usually framed as a question. It

might ask what, or why, something is happening.

For example, to use a topical subject, we might wonder why the stocks of cod in the
North Atlantic are declining. The problem question might be ‘Why are the numbers of
Cod in the North Atlantic declining?’
This is too broad as a statement and is not testable by any
reasonable scientific means. It is merely a tentative question arising from literature
reviews and intuition. Many people would think that instinct and intuition are
unscientific, but many of the greatest scientific leaps were a result of ‘hunches’.

The research hypothesis is a paring down of the problem into something testable and
falsifiable. In the aforementioned example, a researcher might speculate that the
decline in the fish stocks is due to prolonged over fishing. Scientists must generate a
realistic and testable hypothesis around which they can build the experiment.

This might be a question, a statement or an ‘If/Or’ statement. Some examples could

be:

• Is over-fishing causing a decline in the stocks of Cod in the North Atlantic?

• Over-fishing affects the stocks of cod.
• If over-fishing is causing a decline in the numbers of Cod, reducing the
amount of trawlers will increase cod stocks.

These are all acceptable statements and they all give the researcher a focus for
constructing a research experiment. Science tends to formalize things and use the ‘If’
statement, measuring the effect that manipulating one variable has upon another,
but the other forms are perfectly acceptable. An ideal research hypothesis should
contain a prediction, which is why the more formal ones are favored.

A hypothesis must be testable, but must also befalsifiable for its acceptance as true
science.

A scientist who becomes fixated on proving a research hypothesis loses their

impartiality and credibility. Statistical tests often uncover trends, but rarely give a
clear-cut answer, with other factors often affecting the outcome and influencing
the results.

Whilst gut instinct and logic tells us that fish stocks are affected by over fishing, it is
not necessarily true and the researcher must consider that outcome. Perhaps
environmental factors or pollution are causal effects influencing fish stocks.

A hypothesis must be testable, taking into account current knowledge and

techniques, and be realistic. If the researcher does not have a multi-million dollar
budget then there is no point in generating complicated hypotheses. A hypothesis
must be verifiable by statistical and analytical means, to allow
a verification or falsification.

In fact, a hypothesis is never proved, and it is better practice to use the terms
‘supported’ or ‘verified’. This means that the research showed that the evidence
supported the hypothesis and further research is built upon that.

A research hypothesis, which stands the test of time, eventually becomes a theory,
such as Einstein’s General Relativity. Even then, as with Newton’s Laws, they can still
be falsified or adapted.
 Scope of the study
The general aim of the study was to choose, develop and experiment
with some evaluation methods applicable to product design and capable
of facilitating ergonomics-related decision-making. User participation
was aimed to be an essential part of the experimental evaluations.
Sound and realistic ways to involve users in the design process were
sought. The study results, the different EEE procedures, can be used in
developing activities related to the design process at workplaces and by
product manufacturers. The procedures applied should be, after the
developments, more tailored and consistent for (1) developing better
products as far as absolute user-match is concerned and (2) comparing
new systems and products with those of competitors (relative user-
match). The study aims to utilise both ergonomic and usability expertise.
Fig. 6 shows the papers versus the methods used. All the papers except
VII are reports of experiments on elderly subjects, but some of the
patients involved in the videophone experiment (paper VII) were also
elderly people. Subjective assessment, though based on real perception
during trials, is predominantly involved in most of the experiments,
including comparison of the values of objective variables. Subjective
assessment was assumed to be quicker and easier to elicit and
analyse, and it also has an important role in consumer choices. The
step experiment (paper I) was about purely objective assessment. The
main emphasis in this study was on user-centred design with usability
trials. Objective measurements were also made with instruments.
Diverse research-style user trials were combined and developed into
practical industrial tests in evidence-based ways.
Scope of the study
This chapter presents an overview of the strengths and weaknesses of
these different approaches based on the perspectives of two different
broad classes of users:

1. The user skilled in patent terminology and searching,

representing primarily examiners but also patent attorneys able
to make ready use of interfaces that demand or offer, for
example, Boolean queries, patent classification systems such as
IPC and ECLA, and searches of patent-specific data fields such as
“inventor” and “claims”.

The assumption was made that the primary requirement of such

a user is to find information related to validity of patent claims.
In particular, this user should be able to find, for any patent
application, the entirety of prior art that should require
 modification of claims such that no claim reads on any available
prior art.

The needs of this user are very important to the credibility and
quality of a national patent system. Patents issued may be
respected more widely if the metes and bounds of claims are
clear and non-overlapping, and the presumption of validity
following examination is well supported.

2. The innovator or user of technology, who may not be an expert

in patent terminology (though possibly expert in the terminology
of a particular field of art). In this document we refer to the
“public” technology searcher.
This user has a strong economic interest in quality intellectual
property informatics. The desire is to avoid wasteful investment,
either in attempts to develop and patent technology that is
already in the prior art, or in attempts to implement and market
technology covered by exclusionary rights to which access may
not be available.

A clear understanding of what is claimed must be supported by

the availability of definitions and citations from the specifications
(and any literature deemed relevant in construing claims, such
as contemporaneous dictionaries). For such a user, ability to
search titles and abstracts only would be quite insufficient. Full
text searching of specifications is a requirement.

Prior art is certainly of interest to this type of user, including both

patent and non-patent data, but so is status information (where
is this patent in force?) and applicant or assignee information
(from which entities would practicing this technology require a
license?).

The needs of this user are very germane to IP Australia’s function

within the innovation system upheld by Australian and
international intellectual property law. If such users are
facilitated in their attempts to invent new technology rather than
re-inventing the wheel, and to commercialise technology in non-
infringing ways, the economy benefits and social goods are
multiplied.

Analysis involved in the study

In this report we provide user analysis of a number of representative
public and commercial IP information providers. A set of queries was
devised to allow direct comparison of the search engines, described
below. Observations were made on a variety of parameters, services
and features of special interest to each of the two types of users
mentioned above. We also noted convenience metrics such as speed
and whether patent documents can be downloaded in entirety as PDF
files.

While analysis of all available providers would be well beyond the

scope of this report, it was possible to choose the major providers, in
that consolidation has been a key trend within the commercial sector,
with multi-nationals such as the Thomson Corporation controlling a
number of previously independent providers. A number of databases,
such as the Derwent World Patent Index (DWPI), have become industry
standards and are used by a number of otherwise competing
providers. For this study we also looked at a number of additional
providers, aiming to select primarily those that use somewhat different
search approaches than the standard, and a number of national patent
offices.

Despite the concentration of private search service ownership and the

sharing of some core resources, the range and complexity of searching
options available is such that conducting an effective search using
existing tools is in no way straightforward for Australian innovators.
Even these databases have gaps in data, sometimes caused by delays
with access to raw data.2 For Australian patent literature, we were
unable to locate providers that would allow a comprehensive search of
full specification texts.