The Small Business Administration

Published Date: 02 Nov 2017

Introduction and company profile

The PMC bank has commenced its operation on 13th February, 1984 with an aspire to provide bank services that give the client utmost ease and expediency. Within a little span of now 16 years, it has achieved listed STATUS on 29/01/2000 and is the YOUNGEST CO-OPERATIVE BANK to get the status. Punjab & Maharashtra Co-op. Bank Ltd chose to journey its applications counting core bank on to Power system to support the rising needs of its over 66 undergrowth, two additional room counter and ATM system, while strengthening its online presence from side to side distant bank.

"Banks and monetary institution have achieved abridged working cost by means of far over the ground presentation for several years with IBM Power system," said Viswanath Ramswamy, administrator, Power system, IBM India South Asia. "For PMC Bank, our goal is to supply an apparatus roadmap which will also hold up the bank maintain its long-term growth. The option of an IBM Smarter compute retort over competitive platform reaffirms our management in the Indian UNIX member of staff serving at table market."

PMC Bank implement Power Systems built with Blade Center H, POWER 7 blades, AIX operating system, Storewide V7000 storage system and Tivoli Storage Manger. Featuring Power virtualization machinery, the bringing together endow with a more pulsating and stretchy procedure, and help data allocation connecting bank undergrowth more on the double, while optimizing capital utilization and care costs under organize. RAS and SSD facial form automate data demanding to assist the bank finger climax loads in real instant, thus humanizing retort time for consumers and sinking business down time due to hardware failure.

PMC bank whole implementation and consolidation was done in connection with IBM big business associate familiarize technology. Headquartered in Mumbai, Maharashtra, PMC Bank supports over 500,000 clients and Rs 5,500 cores plus of business.

As part of an IT transportation repair, Punjab & Maharashtra Co-operative (PMC) Bank has migrate its applications as well as core banking to an IBM communications with authority system to hold up the rising requirements of its additional than 66 branches, two addition counters and ATM network.

The bank had be rising at a fast pace in the new years and to keep up with its enlargement without compromise its principles of tune and to be able to augment its assistance while increasing its division and ATM system, PMC wanted to reorganize its IT carrying in order to support a variety of application like mobile bank, SMS banking, Internet bank, coffers operation and kiosk services.

"We desire to offer our patrons a bank familiarity which is easier, faster, and more opportune and secure," said H Krishna Karanth, universal Manager, PMC Bank. "We also want to improve the role of our brushwood and let them focus on as long as monetary services recommendation and direction, while leaving the dealings part to the IT transportation."

This meant execute millions of dealings every day, handling iterations in a secure way, maintain full data integrity across manifold subsystems and continually complementary workloads. It also destined production at the same time with challenge such as organization danger and rules, achieve best connectivity and finding new ways to attain competence and cost-savings.

Choose IBM, PMC Bank implemented IBM control system build with IBM Blade Center H, POWER7 blades, AIX operating system,. Featuring IBM Power virtualization technology, the structure provides a more lively and flexible stage, and facilitate data distribution squeeze in stuck between bank brushwood more quickly, while optimizing capital use and maintenance expenses under control. RAS (Reliability, Availability and Serviceability) and SSD facial outer shell automate data-tiring to help the bank handle peak many in genuine occasion, thus improving response time for consumers and reducing business down instance due to hardware failures.

The entire completion and consolidation was done in relationship with IBM commerce Partner Orient technology.

Growth of the company

Punjab and Maharashtra Co-operative Bank ltd has achieved a landmark of opening 75 service locations across Maharashtra, Karnataka, Goa and New Delhi. Mr Charanjit Singh Chadha, chairman, PMC Bank, said "With just one branch in 1984, we have now grown to 75 service locations across the four states.

Over the past 28 years our bank has not only maintained a steady growth but has also constantly kept on adding new and unique services for our customers including extended banking hours that is 8 a.m. to 8 p.m. banking and keeping the bank open on Sundays and even on public holidays. Our customers have welcomed such initiatives and this is what has made us stand out from the crowd." He added that, "Kishor Bachat Yojana – a saving account for kids in the age group 12 - 18 years - is very exclusive that provides a free ATM card and personalized cheque book facility". Another popular offering called Flexi Money Deposit Scheme, is a fixed deposit scheme structured to permit the account holder to use his/her own money whenever required. Thus, the account holder can earn an interest rate of FD while enjoying the freedom of operating saving and current account. Besides this, the customer can also withdraw any amount at any time without dismantling the entire edifice of one’s fixed deposit."  [NT]

Taurus Mutual Fund has entered into an agreement with Punjab & Maharashtra Cooperative Bank for the distribution of its schemes, said a release from the fund house. Punjab & Maharashtra Cooperative Bank (PMC) has more than 90 branches across the country.

"It has been our Endeavour to offer to our customers, financial products which suit their needs, under one roof," said Mr. Joy Thomas, Managing Director of PMC.

2. Product Profile

Teller/Platform

Ambit t Branch Teller stand provides fast and well-organized branch deal processing allow employees to take advantage of on each customer communication. Ambit Branch Teller stand utilize a business process organization (BPM) design providing a total picture of branch performance, enabling management to understand where service and prepared efficiencies may be gain within their bough operation.

Internet / Mobile

Immediate Payment Service or IMPS offers an immediate, 24X7, interbank electronic finance move repair from side to side mobile phone in India. IMPS create simple clientele to use mobile implement as a through for access their bank accounts and place far above the argument interbank finance transfer in a available method with instant corroboration skin. This ability is providing by the National Payments Corporation of India (NPCI), an sun umbrella association for all retail sum systems in India.  The Interbank Mobile sum Service (IMPS) was publicly launched in November 2010.

ATM

An ATM card (also known as a bank card, client card, key card, or cash card) is a payment card provided by a financial institution to its consumers which enable the customer to use an automated (ATM) for transactions such as: deposit, cash withdrawal, obtain explanation in order, and other types of bank dealings, often through interbank networks.

Loan Origination

Loan beginning is the process by which a borrower apply for a latest loan, and a lender processes that request. Start usually includes the entire stepladder from taking a loan request up to disbursal of money service cover the whole obsession after disburse the money pending the advance is completely salaried rotten Loan beginning is a specialize edition of new explanation chance for economic services organization. Assured populace and organization specialize in loan origination. Mortgage brokers and other advance inventor companies serve as a famous example.

Mortgage Servicing

A Mortgage bank specialize in originate and/or servicing loans. A recognition bank is a state-licensed bank body that makes mortgage loan straight to consumers. The dissimilarity a advance banker and a mortgage broker is that the advance banker funds loans with its own capital.

Usually, an advance bank originates a loan and spaces it on a pre-established warehouse line of credit until the loan can be sold to an investor such as Fannie Mae, or Freddie Mac. The procedure of selling a loan from the mortgage bank to one more investor is referred to as promotion the credit on the secondary market.

Wealth Management/Securities

The Asset and Wealth Management Corporate Division is made up of two Business Divisions Asset Management and Private Wealth Management. 

While personal Wealth organization serves the bank needs of wealthy persons and family across the globe, Asset organization provides asset solutions to individual and institutional investors worldwide. 

Mutual Funds

A Mutual Fund is a faith that pools the funds of a numeral of investor who split a ordinary monetary aim. The money thus composed is then invested in assets marketplace instrument such as share, debentures and additional securities. The profits earn all the way through these savings and the assets approval realizes is mutual by its unit receptacle in total to the number of unit own by them. Thus a joint finance is the most suitable investment for the widespread man as it offers an occasion to invest in a diversified, efficiently managed container of securities at a comparatively low cost.

Letters of Credit

A letter of credit is a certificate issued by a monetary institution, or an alike party, assure sum to a seller of commodities and/or services. The seller then seeks repayment from the buyer or from the buyer's bank. The official document serves fundamentally as an declaration to the wholesaler that it will be paid by the issuer of the letter of credit in spite of of whether the buyer ultimately fails to pay. In this way, the risk that the buyer determination fails to reimburse is transfer from the seller to the letter of praise issuer.

Cash Management

Cash administration refers to a broad area of finance connecting the compilation, management, and usage of cash. It involve assess market liquidity, cash flow, and investments.

In banking in the United States, cash organization, or treasury management, is a marketing term for certain services related to cash available primarily to better exchange customers. It may be used to explain all bank accounts (such as checking accounts) provide to businesses of a sure dimension, but it is more often second-hand to explain exact services such as  cash concentration, zero equilibrium secretarial, and automated clearing house facilities. Now and then, private banking patrons are given cash organization services.

Remote Deposit Capture

Remote deposit is a way to process expenditure without sending check to the store. With distant deposit, you can scan a picture of a check, drive the picture to your bank, and see the funds added to your explanation additional rapidly. Let’s wrap the basics of remote put down equipment.

Small Business Administration (SBA)

SBA's loan agenda involves free currency, administration grant or no-interest adavance. In fact, the SBA doesn't flat lend funds in a straight line to entrepreneurs--you'll need to strike up a union with a loan official at your home bank, recognition union or nonprofit monetary go-between to access the program.

Asset Liability Management

In banking, asset and liability management (often abbreviated ALM) is the follow of association risks that arise due to mismatches between the assets and danger (debts and assets) of the bank. This can also be see in wrap. Banks fascia several risks such as the liquidity risk, interest rate risk, credit risk and operational risk. Asset liability management (ALM) is a strategic management tool to run interest rate risk and liquidity danger face by banks, other financial services company and business.

Bill Pay

Pay Online, directly from your bank account through Net Banking/ATM/Mobile using Bill pay service of your bank. Spend your telephone, electricity and mobile phone bills appropriately through the Internet, via ATMs or a phone with Bill Pay, our inclusive bill payments answer.

Cards

A bank card is a plastic card issued by a bank to its clients that may achieve one or additional of the following services:

ATM card, card used for dealings at habitual teller equipment

Debit card, card associated to a bank description and used for creation purchases

Credit card, card attached to a revolving credit it

Customer Data Analytics/ CRM

CRM is a business model that aligns product and sales strategies with customer requirements and preferences. Services are then provided in a timely manner using the channels that are preferred by the customers. Effective CRM starts by focusing on the development of business strategies and by aligning an organization to serve customers. These business strategies are then executed using CRM technology solutions

Data Warehouse

Along with the development of information technology, business intelligence plays an important role in the bank operation process. Bank Intelligence is a method of storing and presenting key bank business data so that anyone in the bank can quickly and easily ask questions of accurate and timely data. In a bank network, hundreds of millions of customer data records are generated daily. The growing competition and increased speed of business changes has dramatically shown the need for bank intelligence.

Risk Management

Banks in the process of monetary intermediation are confront with a variety of kinds of monetary and non-financial risks viz., credit, interest rate, unknown swap over rate, liquidity, equity price, product price, legal, authoritarian, reputational, ready, etc. These risks are extremely mutually dependent and events that affect one area of risk can have ramifications for a range of other risk category. Thus, top organization of banks should fasten substantial significance to improve the ability to identify measure, check and manage the in general level of risks undertake.

Payments

Faster expenditure Service (FPS) is an initiative to decrease imbursement era between dissimilar banks' consumer accounts from three operational days by the established BACS scheme, to a few hours. CHAPS already provides limited faster-than-BACS service (by close of business that day) for far above the ground price transactions, while FPS is listening cautiously on the a great deal better number of expenditure of lesser values (the actual limits depend on the individual banks, with some allow Faster expenditure up to the worth 

Transfers

Who have migrated overseas or to cities, normally use money orders and wire transfers to send cash to their families back home? ATM increase, mostly in rural India, will capture important business from the luxurious wire transfer agents’ network and the customer-service lacking postal network. In line with transnational trends, ATMs can be made competent to hand out printed money orders or initiate wire transfer beside a charge on customers’ bank financial records.

Currency Supported

The bank give repair of currency support like give different country currency meticulous brushwood which is obligatory in there state of affairs

3. Functional Departments

Marketing Department

PRODUCT

The main products of PMC Bank are Saving Account, Current Account and Demat Account. The other products are Home loan, personal loan, Insurance, Credit cards, etc.

For better marketing of products, the products are categorized under Axis Bank and Axis Sales.

Products under pmc Bank are

Saving Account

Current Account

Forex Department

Salary Accounts

Products under Pmc Sales are

Home loan

Personal loan,

Demat Account

PRICE

The price of the formation depends engaging the services provided by the store on the own product to the consumers. Thorough pricing change from time to time and the similar can be set up on the website of Pmc bank.

PLACE

Place plays a significant role in tangibilizing service offerings. Quality of service is perceived by many customers in the form of place of delivery- site appeal, interiors, ambience, etc. If a bank is situated in a crowded market the put or location will be a negative tangibilizes. Given that outstanding tangibles in the form of place or site and interiors is chiefly significant for attractive to the consumers section. More recently some of the private banks in India like AXIS Bank are providing very attractive tangibles in the form of their locations, exteriors and interiors.

PROMOTION

encouragement can tangibilize services in different forms:

Visualization

Association

Physical representation

Documentation.

Hallucination tangibilizes services through hoardings, TV and print campaign or advertisement. Bodily illustration in services has a good promotional appeal to consumers like use of colors to stand for riches and rank. Service providers use documents in their promotions in hold up of their claims for reliability, celebrity and receptiveness

PEOPLE

Public are a ordinary factor in every repair. And people tangibilize services. High-quality       people (means good performance) make high-quality or successful services. Bad performer delivers bad services.

PROCESS

Customer distinct business process- Process innovation and continuous get better-

From side to side people involvement.

Result leaning approach- Each process has been designed by first planning the desired results.

Pmc Bank is constantly taking initiatives to offer the best in class service that seek to enhance customer experience.

PHYSICAL EVIDENCE

Decrease paper usage- Due to technical innovations such as use of Finale software for core banking solutions.

It has located itself as a bank which gives higher standard of equipped f through product novelty.

satisfy the diverse need of person and business clients.

It is client centric, and repair leaning.

E. RATIO ANALYSIS

Ratios can be classified under following five heads

A. Liquidity Ratios

B. Solvency Ratios

C. Profitability Ratios

D. Equity Related Ratios

I had used the above 5 heads for computing Ratios for (PMC BANK)

A. LIQUIDITY RATIOS

(Concept of Liquidity Ratio :)

Following are the three Ratios under this head:

1. Current Ratio

2. Quick Ratio

3. Cash Ratio

LIQUIDITY RATIOS

Concept of Liquidity Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations. A class of financial metrics that is used to determine a company's ability to pay off its short-terms debts obligations. Generally, the higher the value of the ratio, the larger the margin of safety that the company possesses to cover short-term debts. Common liquidity ratios include the current ratio, the quick ratio and the operating cash flow ratio. Different analysts consider different assets to be relevant in calculating liquidity. 

Following are the three Ratios under this head:

1. Current Ratio

3. Cash Ratio

1. Current Ratio:

The current ratio is a financial ratio that measures whether or not a firm has enough funds to pay its debts over the next 12 months. It compare a firm's current assets to current liabilities its. The current ratio is an indication of a firm's marketplace liquidity and ability to meet creditor's demands. acceptable present ratios vary from industry to industry and are usually between 1.5 and 3 for healthy business. If a company's current ratio is in this range, then it generally indicates good short-term monetary strength.

Current Ratio= Current Assets / Current Liability

(Rs.incrore)

Year

2010

2011

2012

Current assets

272.58

401.75

594.38

Current Liabilities

265.46

293.50

379.13

Current Ratio

1.02

1.36

1.56

INTERPRETATION

We can see from the above chart that, PMC CO. Current assets are not more than double against current liabilities in last two years. This shows not very good condition of company. The high current ratio more ability of company to meet current obligation and greater safety of funds for short term creditors. So it indicates, the current ratio is not satisfactory.

Cash Ratio:

The ratio of a company's total cash and cash equivalent to its current liability. The cash ratio is most usually used as a calculate of corporation liquidity. It can so determine if, and how rapidly, the corporation can pay back its short-term debt. A strong cash ratio is useful to creditors when decide how much debt, if any, they would be eager to make bigger to the ask public gathering. 

Cash Ratio= (Cash + Marketable Security) / Current liability

2010

2011

2012

Cash

178.74

216.42

229.86

Marketable security

5.74

6.00

7.85

Current Liabilities

265.46

293.50

379.13

Cash Ratio

0.69

0.75

0.62

INTERPRETATION

The Cash ratio includes Marketable security in numerator, it must be noted the Quoted Investments are taken as marketable security. The cash ratio is the highest in 2011, as compared other years, it is good. This indicates for 1 Rs. of current liability, 0.62 Rs. are available by the way of cash and marketable security, from the total current assets.

B. SOLVENCY RATIOS

Following are the three Ratios under this head:

1. Debt - Equity ratio

2. Debt ratio

3. Interest coverage ratio