A Study On Changing Technology and Customer Needs In

Andhra Bank

A Project Report Submitted in the partial fulfilment of the

Degree of Master of Business Administration

Session: 2017-2019

Under the Guidance of:- Submitted By:-

Mr. Lokesh Uke Mayank Kesharwani

(Assistant Professor) Reg. No.: Y17282016

M.B.A 4th SEMESTER

Department of Business Management

Dr. Harisingh Gour Vishwavidyalaya Sagar (M.P) 470003
 DECLARATION BY THE CANDIDATE

Dated: _____________

I declare that the Project Report title “A Study On Changing Technology and Customer Needs In
Andhra Bank ” is my own work conducted under the supervision of Mr. Lokesh Uke , Assistant
Professor, Department of Business Management, Dr. Harisingh Gour Central University, Sagar. The
information and data given in the report is authentic to the best of my knowledge
and this project work is submitted in the partial fulfillment of the requirements for the award of the
degree of Master of Business Administration (MBA). The results embodied in this thesis have not
been submitted to any other University or Institute for the award of any degree or diploma.

Mayank Kesharwani.
MBA 4th Semester
(Registration No. - Y17282016)
 CERTIFICATE

This is to certify that Mayank Kesharwani (Reg. No: Y17282016) student of 3rd Semester

Master of Business Administration Degree programme had undergone a project under the

supervision of Mr. Lokesh Uke Assistant Professor at Dr. Harisingh Gour Central University,

Sagar (M.P) .The project embodies the original work done by Mr. Mayank Kesharwani

during his project period and the work is satisfactory.

Asst. Prof. Mr. Lokesh Uke Asst. Prof. P.Vakula Kumari

(Project Supervisor) (Project Incharge)

 ACKNOWLEDGEMENT

It is my proud privilege to release the feelings of my gratitude to several persons who helped me
directly or indirectly to conduct this project work. I express my heart full in debtness and owe a deep
sense of gratitude to my teacher and my faculty guide Mr. Lokesh Uke Sir, Assistant Professor, Dr.
Harisingh Gour Central University Sagar, (Madhya Pradesh.), to my project incharge Mrs. P. Vakula
Kumari Mam, Assistant Professor, Dr. Harisingh Gour Central University Sagar, (Madhya
Pradesh.),for their sincere guidance and inspiration in completing this project.

I am extremely thankful to the Head of the Department Professor Dr. Y.S. Thakur and Faculties of
Department of Business Management, Dr. Hari Singh Gour Central University, Sagar (Madhya
Pradesh). I am also extremely thankful to all those persons who have positively helped me. I also
thank all my friends who have more or less contributed to the preparation of this project report. I
will be always indebted to them.

Thanking You

Mayank Kesharwani

MBA 4th Semester

(Registration No. Y17282016)

 PREFACE
It is a great opportunity for me to have the degree of Master of Business Administration (MBA) in Dr.
Hari Singh Gour University Sagar (M.P.). In the accomplishment of this degree I am submitting a
project report on “A Study On Market Potential And Brand Awareness Towords Hero HF Deluxe In
Sagar Region Of Madhya Pradesh India”.

I am pleased to present “A Study On Market Potential And Brand Awareness Towords Hero HF
Deluxe In Sagar Region Of Madhya Pradesh India”. As Two wheeler is very important sector for
economy also. In this report I have tried to give all the important things about the Two wheeler. The
whole study is divided into different parts, the first part is introduction, Industry Profile, Company
Profile, Introduction of Topic of the industry. The second part of the report contains Objective, need,
scope of the study and Research Methodology. The third part of the report contains Data Analysis &
Interpretation in the automobile industry. The fourth part contains the findings and Suggestions of
study.

I have given information in this reporting by consulting useful websites articles and books. Subjected
to the limitation of time efforts every possible attempt has been made to study the problem deeply,
and I have tried my best to avoid mistakes. I am very thankful to everyone who all supported me for
completion my project effectively or moreover on time.

Language of the report is simple and lucid. Attempts have been made to arrange the subject matter
in a systematic and well-knit style. Efforts have also been made to deal with all topics precisely and
gently.

Mayank Kesharwani

MBA 4th Semester

 TABLE OF CONTENTS

 Front Page I
 Declaration II
 Certificate III
 Acknowledgement IV
 Preface V

S. No. Content Page No.

Chapter-1
1.1 Introduction 7-8

1.2 History of District Central Co-operative bank 9-10

Chapter-2
2.1 Bank Profile 11-13

2.2 Corporate Vision 14

2.3 Corporate Mission 14

2.4 Objectives of the Internship 18

Chapter- 3
3.1 Sources of Data 19

3.2 Agricultural Finance 19-22

3.3 Sources Of Agricultural Finance 22-24

3.4 Types of agricultural finance 24-25

3.5 Agriculture Season 26-27

3.6 Agriculture loan 28-33

Chapter – 4
4.1 Findings 34

4.2 Suggestions 34

4.3 Conclusion 35

Bibliography 36
 CHAPTER -1

1.1 INTRODUCTION

Banking
The word "BANK" is derived from a Latin word 'Bancus' or 'Banque', which means a bench.
In the early days the European moneylenders and moneychangers used to sit on the benches
and exhibit coins of different countries in big heaps for the purpose of changing and lending
money,:

As per Banking Regulation Act 1949 Section 5(b)

"Banking means, accepting for the purpose of lending or investment, of deposits of money
from the public, repayable on demand or otherwise, and withdrawal by cheque, draft, or
otherwise."

The banking industry is and always has been one of the most important aspects of all
industries. The reason being, every other industry needs banks to take part in any investments
or financial movements as a way to better their position in their industries. The
industry analysis will look at how and why the banking industry has been able to hold this
position for so long through the Competitive Landscape. Banking in India has a long and
elaborate history of more than 200 years. The beginning of this industry can be traced back to
1786, when the country’s first bank, Bank of Bengal, was established. But the industry
changed rapidly and drastically, after the nationalization of banks in1969. As a result, the
public sector banks began experiencing numerous positive changes and enormous growth.
Then came much-talked-about liberalization and economic reforms that allowed banks to
explore new business opportunities and not just remain constrained to generating revenues
from mere borrowing and lending. This provided the Indian banking scenario a remarkable
facelift that only continues to get better with time. However, even today, despite the foray of
foreign banks in the country, nationalized banks continue to be biggest lenders in the country.
This is primarily due to the size of the banks and the penetration of the networks.
Commercial Banks play an important role in the economy by financing the requirements of
trade, industry and agriculture in the country. They draw the community savings into the
organized sector which are then allocated among the different economic activities according
to the priorities laid down by the authorities i.e. RBI and Government of India.
INDIAN BANKING SCENARIO

The Banking industry comprises of segments that provide financial assistance and advisory
services to its customers by means of varied functions such as commercial banking,
wholesale banking, personal banking, internet banking, mobile banking, credit unions
,investment banking and the like. With years, banks are also adding services to their
customers. The Indian banking industry is passing through a phase of customers market. The
customers have more choices in choosing their banks. A competition has been established
within the banks operating in India .With stiff competition and advancement of technology,
the services provided by bank shave become more easy and convenient. The past days are
witness to an hour wait before withdrawing cash from accounts or a cheque from north of the
country being cleared in one month in the south..Bank of Hindustan, set up in 1870, was the
earliest Indian Bank . Banking in India on modern lines started with the establishment of
three presidency banks under Presidency Bank's act 1876 i.e. Bank of Calcutta, Bank of
Bombay and Bank of Madras. The commercial banking structure in India consists of:
Scheduled Commercial Banks &Unscheduled Banks. Banking Regulation Act of India, 1949
defines Banking as "accepting, for the purpose of lending or investment of deposits of money
from the public, repayable on demand and withdrawal by cheques, draft, order or
otherwise."The arrival of foreign and private banks with their superior state-of-the-art
technology- based services pushed Indian Banks also to follow suit by going in for the latest
technologies so as to meet the threat of competition and retain customer base. The evolution
of IT services outsourcing in the Indian banks has presently moved on to the level of
Facilities Management (FM). Banks now looking at business process management (BPM) to
increase returns on investment, improve customer relationship management (CRM)and
employee productivity .For, these entities sustaining long-term customer relationship
management (CRM) has become a challenge with almost everyone in the market with
similar products.

CLASSIFICATION OF BANKING INDUSTRY IN INDIA

Indian banking industry has been divided into two parts, organized and unorganized sectors. The
organized sector consists of Reserve Bank of India, Commercial Banks and Co-operative Banks, and
Specialized Financial Institutions (IDBI, ICICI, IFC etc). The unorganized sector, which is not
homogeneous, is largely made up of money lenders and indigenous bankers. An outline of the Indian
Banking structure may be presented as follows:

ROLE OF THE RESERVE BANK IN THE BANKING SECTOR

The Reserve Bank of India, being the central bank of the country, has numerous monetary
and financial functions to overlook. The functions of the Reserve Bank which have a direct
bearing on the banking sector are:

Financial Supervision-

This aspect of the Reserve Bank is under the aegis of a Board for Financial Supervision
(BFS). The objective of the BFS is to under take consolidated supervision of the financial
sector comprising commercial banks, financial institutions and non-
banking finance companies. The functions that come under the above mentioned objectives
are:

a) Restructuring of the system of bank inspections.

 b) Introduction of off-site surveillance.
c) Strengthening of the role of statutory auditors and
d) Strengthening of the internal defenses of supervised institutions.

Thus, the BFS does such acts as the supervising financial institutions, consolidated
accounting, looking at legal issues in bank frauds, providing assessments of non-performing
assets and maintaining a supervisory rating model for banks.

Monetary Authority-

The Reserve Bank is the monetary authority of the country. This implies that the Reserve
Bank formulates implements and monitors the monetary policy of the country. The various
monetary policies involves the availability of liquidity in the economy the amount of money
supply to the economy), and setting the interest rates in the country. These rates include the
Statutory Liquidity Ratio (SLR), the Cash Reserve Ratio (CRR) and the Cash Adequacy
Ratio(CAR) among others. By this function, the Reserve Bank maintains price stability in the
economy and ensures that cash flow to various (important) sectors is maintained. In relation
to the banking industry, the setting of interest rates is of utmost importance. This limit
prescribes the conduct of the banks in the economy. It also acts as an entry barrier to the
sector.

Regulator of the Banking System

Being the regulator of the banking, the Reserve Bank “prescribes a set of
broad parameters from within which the country‟s banking and banking and financial system
functions". The specific aims of financial regulation are usually:

a) To enforce applicable laws.

b) To prosecute cases of market misconduct, such as insider trading.
c) To license providers of financial services.
d) To protect clients, and investigate complaints.
e) To maintain confidence in the financial system.

It is evident from these points that the Reserve Bank does have an amount of control over the
functioning and the conduct of the banks in the sector. The Reserve Bank and
SEBI(Securities and Exchange Board of India) thus can even force banks to withdraw from
the sector in the case of occurrence of unfair practices.

Banker to the banks

The Reserve Bank acts as the banker to the various banks in the country and
maintains banking accounts to all the scheduled banks in the country.

Public sector banks Private sector banks Foreign banks

Allahabad Bank Axis Bank Citibank

Andhra Bank Bandhan Bank Bank of America
Bank of Baroda Catholic Syrian Bank Bank of Ceylon
Bank of India City Union Bank Bank Internasional Indonesia
Bank of Maharashtra DCB Bank Bank of Tokyo-Mitsubishi
Canara Bank Dhanlaxmi Bank Bank of China
Central Bank of India Federal Bank Abu Dhabi Commercial Bank
Corporation Bank HDFC Bank American Express
Dena Bank ICICI Bank Standard Chartered Bank
IDBI Bank IDFC First Bank Qatar National Bank
Indian Bank IndusInd Bank
Indian Overseas Bank Jammu & Kashmir Bank
Oriental Bank of Commerce Karnataka Bank
Punjab and Sind Bank Karur Vysya Bank
Punjab National Bank Kotak Mahindra Bank
State Bank of India Lakshmi Vilas Bank
Syndicate Bank Nainital Bank
UCO Bank RBL Bank
Union Bank of India South Indian Bank
United Bank of India Tamilnad Mercantile Bank Limiteded
Vijaya Bank Yes Bank
EVOLUTION OF ANDHRA BANK

Andhra Bank has a historical and patriotic background. It was an offshoot of National
Movement and was founded by Dr. Bhogaraju Pattabhi Sitaramaiah, an ardent freedom
fighter of the country. It was registered on 20" November, 1923 at Machilipatnam, a port
town in coastal Andhra Pradesh, with a paid up capital of Rs. I lakh and authorized capital of
Rs. 10 lakh, which were raised to Rs. 25 lakh and Rs. 1 core respectively by 1946. It was the
first commercial bank established in Andhra Pradesh. Dr. Pattabi was the Managing Director
of the Bank since its inception in 1923 to 193 1 and continued to be a director till 1941. He
also started Bharata Lakshmi Bank, a second one in Andhra Pradesh, which was merged with
the Andhra Bank in 1964.

In spite of some difficulties faced during the Second World War, the bank moved forward
and steadily sailed towards progress and stabilization. The Bank attained the status of
scheduled bank in 1943. The Bank stepped out of Andhra Pradesh for the first time in
February 1945 by opening a branch at Madras. The central office was shifted from
Machilipatnam to Hyderabad in 1963.

With the nationalization of 14 major banks in July 1969, Andhra Bank remained as the
largest hank among the non-nationalised banks. It maintained this position of No. 1 in the
Private Sector Banks throughout till it was nationalized on
15th April 1980 along with five more banks'. The Bank was assigned the Lead role in five
districts, namely, Srikakulam, East and West Godavari. Guntur in Andhra Pradesh and
Gunjam in Orissa even before its nationalization. The Bank took up the financing of Small
Scale Industries, agriculture, foreign trade, and weaker sections on a massive scale. For the
benefit of farmers, the bank introduced Kisan Card. To render more help to the people in
rural areas, a number of Rural Credit Branches were opened besides sponsoring a number of
Farmers' Service Co-operative Societies.
 CHAPTER -2

2.1 BANK PROFILE

Andhra Bank (AB) was founded by the eminent freedom fighter and a multifaceted genius
Dr.Bhogaraju Pattabhi Sitaramayya. The Bank was registered in 20th November 1923 and
commenced its business in 28th November 1923. The bank offers innovative and need based
financial products and services using state-of -the art technology. As on 31 March 2018 the bank
had 6958 Delivery Channels consisting of 2911 Branches 4 Extension Counters 34 Satellite
Offices and 4009 ATMs including BNAs/ CRs spread over 26 States and 3 Union Territories. The
bank has 47 Specialized Branches catering to the needs of the specific segments of clientele. The
bank also has one representative (overseas) Office at Dubai (U.A.E) (opened in May 2006).

Andhra Bank is a pioneer in Credit Card Business both as issuer and acquirer (merchant
business) since 1981. Andhra Bank, Bank of Baroda and Indian Overseas Bank jointly own a
banking unit in Malaysia. Andhra Bank the Bank's stake in the venture is 25%. The joint venture
viz. INDIA INTERNATIONAL BANK (MALAYSIA) BHD commenced business on 11 July 2012.
Andhra Bank is an `Authorised Dealer' to deal in foreign exchange business through 56
designated `B' category branches of the Bank. The bank has speed remittance arrangements
with an Exchange House based in Gulf. Andhra Bank has a joint venture in insurance with Bank
of Baroda and Legal and General Plc of UK named India First Life Insurance Co. Ltd. Andhra
Bank's stake in the venture is 30% while Bank of Baroda holds 44% and Legal and General Plc
holds 26% stake. Andhra Bank has a tie up with M/s United India Insurance Co Ltd for General
Insurance and Health Insurance M/s Reliance General Insurance Co Ltd for General Insurance
and has also tied up with M/s Cigna TTK Insurance Co Ltd for Health Insurance.

Andhra Bank offers depository services to the public under the brand name of AB Demat. The
bank is a Depository Participant (DP) with Central Depository Services (India) Limited (CDSL) as
well as with National Securities Depository Limited (NSDL). Andhra Bank has a tie-up with 12
Payment Gateways and 11 Mutual Fund companies. On 15th April 1980 the bank was
nationalised.

Andhra Bank had introduced Credit Cards in the country during the year 1981. After two years in
1983 the bank sponsored its second RRB as Chaitanya Grameena Bank in Guntur district. Andhra
Bank took over the Convenorship of SLBC from State Bank of India during the period of 1984. In
1987 AB had sponsored its third RRB under the name OF Godavari Grameena Bank. During the
year 2000 Andhra Bank had installed a request-transmitting machine at its Jubilee Hills Branch in
association with the country's largest depository participant Stock Holding Corporation of India
Limited. For Provide housing loans through the Internet the bank made tie up with a real estate
portal called indiaproperties.com in the year of 2001 and also in the same period AB had entered
into a rupee drawing arrangement with the National Exchange Company WLL Doha and Qatar
for facilitating private remittances to India mainly on behalf of non-resident Indians (NRIs). The
Bank had signed Memorandum of Understanding (MoU) with United India Insurance Company
Limited during the year 2002 for provide its products through various branches. The Bank had
entered into an alliance with Western Union Financial Services International so as to make
available inbound money transfer services at all its locations in India. The Bank had opened its
representative office in Dubai during May of the year 2006.

AB has been given 'BEST BANK AWARD' a banking technology award by IDRBT Hyderabad for
extensive use of IT in Semi Urban and Rural Areas in September of the year 2006. Andhra Bank
has received license from Insurance Regulatory and Development Authority to act as a corporate
agent for procuring or soliciting business of the United India Insurance Company Limited in the
year of 2003.

The Bank entered MoU with Bank of Baroda and Legal & General Group of UK to form a joint
venture life insurance company. During December 2007 the bank launched two new products -
'AB Kisan Rakshak' a debt-swapping scheme for farmers and 'AB Mahila Soubhagya' a debt-
swapping scheme for the benefit of SHGs.

Andhra Bank along with Bank of Baroda and Legal & General Group Plc of UK formed a joint
venture Life Insurance Company named India First Life Insurance Company Ltd and the MOU
was signed in the month of December 2009. From January 2010 onwards Andhra Bank
commenced sale of life insurance policies across all the branches. During the financial year
ended 31 March 2016 United Stock Exchange of India (USE) was amalgamated with Bombay
Stock Exchange and Andhra Bank as one of the promoter shareholders of USE was allotted
77922 shares of BSE with a face value of Rs 1 per share at Rs 385 per share amounting to Rs 3
crore.During the year under review Andhra Bank opened 296 Branches (including up-gradation
of 4 Extension Counters) and added 1404 ATMs/BNA/CRS. During the financial year ended 31
March 2017 Andhra Bank entered into Memorandurm of Understanding (MOU) with Ministry of
Textiles to finance Weavers under PMMY and new scheme had been launched in the name of
AB- Weaver Mudra. During the year under review the bank opened 105 branches and added 293
ATMs/ BNAs/ CRsDuring the financial year ended 31 March 2018 Andhra Bank raised Rs 1100
crore and Rs 1890 crore under Equity Capital from Government of India in Preferential basis.
During the year under review the bank opened 4 branches and added 80 ATMs/ BNAs/ CRs.
FOUNDER

Dr. Bhogaraju Pattabhi Sitaramayya was born on 24th November 1880

in Gundugolanu village, West Godavari District in Andhra Pradesh. He
was a renowned Freedom Fighter and a very illustrious personality.

CORPORATE IDENTITY

Togetherness is the Theme

 The Symbol of Infinity denotes a Bank that is prepared to do

any thing, to go to any lengths, for the customer.
 The Blue pointer on the top represents the philosophy of a bank
that is always looking for growth and newer directions.
 The Key hole represents Safety and Security.
 The Chain indicates togetherness.
 The colours Red and Blue denote dynamism and solidity.

VISION AND MISSION

Our Vision

To become a significant player, providing full range of banking services through innovative
customer centric products and to maximize stake holders’ value.

Our Mission
To work together towards delivering excellent customer service by leveraging on technology
and human resources to attain world class performance standards.
BOARD OF DIRECTORS
Assumed charge as Managing Director and Chief Executive Officer of Andhra Bank
on 21st September 2018. Prior to joining Andhra Bank, he was Deputy Managing
Director in State Bank of India, the Country’s largest Bank.Born on 28th February
1961, he has done his B.Sc. and MBA (Finance) from University of Madras and
CAIIB from IIBF.

He joined SBI as Probationary Officer in 1984 and served in different positions in

the field as well as at administrative and management levels. He also served as Chief
Executive Officer, Frankfurt, Germany Branch of SBI during 2004-2009. He brings
along with him, rich and vast expertise in Banking Business particularly Credit
portfolio, analytical skills, inter-personal qualities etc..