is pnb finacle

8/13/2019 Is PNB Finacle

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Research Projecton

Application & Management of InformationSystem

in

Punjab National Bank

IN PARTIAL FULFILLMENT OFMASTER’S DEGREE IN BUSINESS ADMINISTRATION

INDRAPRASTHA UNIVERSITY

!""#$!"%"&

Submitted by:

P'atik (ain $$ ")#%*+,-"# No't./'n In0ia En1in//'in1 2oll/1/ N3I3E32&4 D/l.i

nder the !aluable guidance of:

M'53 S.a6/ta 7u8a' Fa9ult:4 N3I3E32&

Subject; In<o'8ation S:5t/8 Mana1/8/nt

"ourse "ode; MS$!"*

Submitted on; ," %) No6/8b/'4 !""-

1



Acknowledgement

This formal piece of acknowledgement is an attempt to express the feeling of

gratitude towards people who helped me in successful completion of

research project.

I would like to express my deep gratitude to Mr. B.D Sharma !ranch

manager" #$B%" for his constant co&operation. 'e was always there with his

competent guidance and (alua!le suggestion throughout the pursuance of

this research project.

Special thanks to Mrs. Shaveta Kumar" my internal coordinator who guided

me to work honestly and to gi(e (alua!le suggestion for impro(ing my work.

)!o(e all no words can express my feelings to my parents" friends all thosepersons who supported me during my project. I would also like to thank

almighty *od for his !lessings showered on me during the completion of

project report.

+



INDEX

S.NO

SubTo!c

S.NO

To!c Name "age Number

#. Acknowledgement +

$. %OM"AN& "'O(I)E1. ,rigin - #unja! $ational Bank +. #rofile /0. ision and Mission 2. 3inancial #erformance 4omparison 5

*. IN(O'MATION S&STEM IN "N+#. ,!stor- o Inormat!on S-stem !n "N+

1.a +666& The Beginning 1.! +661&+660& 7ong Term Strategy 1.c +66&+665& *rowth 1.d +668& 9ural Initiati(e 1.e +66:& 166; 4BS Implementation

8

$. Other +ank!ng Al!cat!ons +.a Straight to #rocessing ST#% +.! Depository Setup +.c Bank Mate < =DI

1+

*. "N+ IT Setu 0.a Systems 0.! $etwork Design 0.c Storage" >)$ < 4onnecti(ity 0.d Security Systems

0.e 'ardware < Software 9esources

10

/. Organ!0at!ons Other %omut!ng'esource .a #ayroll T#S .! ,nline )ssistance .c )ccount ,pening & MIS .d S#$S" 9T*S < Mo!ile )lert Ser(ice

1/

/. IM"A%T O( IN(O'MATION S&STEM1. 3inacle?s Impact 12+. Impact on =mployees" 4ustomers 15

1. Ava!lable Alternat!ves 18

2. %onclus!on 1:

3. Suggest!on +6

4. 'eerences +1

0



4ompany #rofile 5 "un6ab Nat!onal +ank

Or!g!n=sta!lished in 18:/ at 7ahore" undi(ided India" #unja! $ational Bank #$B%has the distinction of !eing the first Indian !ank to ha(e !een started solelywith Indian capital. The !ank was nationali@ed in Auly 1:2: along with 10other !anks. 3rom its modest !eginning" the !ank has grown in si@e andstature to !ecome a front&line !anking institution in India at present.

• ) professionally managed !ank with a successful track record of o(er 116years.

• 7argest !ranch network in India & 228 ,ffices including 0+ =xtension

4ounters spread throughout the country.• Strategic !usiness area co(ers the large Indo&*angetic !elt and the

metropolitan centers.

• 9anked as +8th !iggest !ank in the world !y Bankers )lmanac" 7ondon.

• Strong correspondent !anking relationships with more than +15international !anks of the world.

• More than /6 renowned international !anks maintain their 9upee )ccountswith #$B.

• >ell euipped dealing roomsC +6 different foreign currency accounts aremaintained at major centers all o(er the glo!e.

"ro!le

>ith its presence (irtually in all the important centers of the country"

#unja! $ational Bank offers a wide (ariety of !anking ser(ices which include

corporate and personal !anking" industrial finance" agricultural finance"

financing of trade and international !anking. )mong the clients of the Bank

are Indian conglomerates" medium and small industrial units" exporters" non&

resident Indians and multinational companies. The large presence and (ast

resource !ase ha(e helped the Bank to !uild strong links with trade and

industry.

>ith o(er 08 million satisfied customers and 228 offices" #$B has

continued to retain its leadership position among the nationali@ed !anks. The

!ank enjoys strong fundamentals" large franchise (alue and good !rand

image. Besides !eing ranked as one of Indias top ser(ice !rands" #$B has

remained fully committed to its guiding principles of sound and prudent

(The name you can bank upon)



!anking. )part from offering !anking products" the !ank has also entered the

credit card < de!it card !usinessC !ullion !usinessC life and non&life insurance

!usinessC *old coins < asset managements!usiness"setc. Since its hum!le

!eginning in 18:/ with the distinction of !eing the first Indian !ank to ha(e

!een started with Indian capital" #$B has achie(ed significant growth in

!usiness which at the end of March +66: amounted to 9s 0"2"20 crore.

Today" with assets of more than 9s +"2":66 crore" #$B is ranked as the 0rd

largest !ank in the country after SBI and I4I4I Bank% and has the +nd largest

network of !ranches including three o(erseas offices%.

#$B has always looked at technolog- as a key facilitator to pro(ide !etter

customer ser(ice and ensured that its EIT strategy? follows the EBusiness

strategy? so as to arri(e at FBest 3itG. The !ank has made rapid strides in this

direction. )long with the achie(ement of 166; !ranch computeri@ation" one

of the major achie(ements of the Bank is co(ering all the !ranches of theBank under 4ore Banking Solution 4BS%" thus co(ering 166; of its !usiness

and pro(iding E)nytime )nywhere? !anking facility to all customers including

customers of more than +666 rural !ranches. The !ank has also !een

offering Internet !anking ser(ices to the customers of 4BS !ranches like

!ooking of tickets" payment of !ills of utilities" purchase of airline tickets etc.

Towards de(eloping a cost effecti(e alternati(e channels of deli(ery" the

!ank with more than +1/6 )TMs has the largest )TM network amongst

$ationali@ed Banks.

>ith the help of ad(anced technology" the Bank has !een a frontrunner in

the industry so far as the initiati(es for 3inancial Inclusion is concerned. >ith

its policy of inclusi(e growth in the Indo&*angetic !elt. The Bank has

launched a dri(e for biometric smart card !ased technology ena!led

3inancial Inclusion with the help of Business 4orrespondentsHBusiness

3acilitators B4HB3% so as to reach out to the last mile customer. The B4HB3

will address the outreach issue while technology will pro(ide cost effecti(e

and transparent ser(ices. The Bank has started se(eral inno(ati(e initiati(es

for marginal groups like rickshaw pullers" (egeta!le (endors" dairy farmers"

construction workers" etc. The Bank has already achie(ed 166; financial

inclusion in +1"68s(illages.

Backed !y strong domestic performance" the !ank is planning to reali@e its

glo!al aspirations. In order to increase its international presence" the Bank

continues its selecti(e foray in international markets with presence in

'ongkong" Du!ai" a@akhstan" J" Shanghai" Singapore" a!ul and $orway.

) second !ranch in 'ongkong at owloon was opened in the first week of

/



)pril?6:. Bank is also in the process of esta!lishing its presence in 4hina"

Bhutan" DI34 Du!ai" 4anada and Singapore. The !ank also has a joint

(enture with =(erest Bank 7td. =B7%" $epal. Jnder the long term (ision"

Bank proposes to start its operation in 3iji Island" )ustralia and Indonesia.

Bank continues with its goal to !ecome a household !rand with glo!al

expertise.

)mongst Top 1666 Banks in the >orld" EThe Banker? listed #$B at +/6th

place. 3urther" #$B is at the 1122th position among 8 Indian firms making it

to a list of the world?s !iggest

companiesscompileds!ysthesJSsmaga@inesE3or!es?.

"unja! National +ank continues to maintain its frontline position in the

Indian !anking industry. In particular" the !ank has retained its $JMB=9 ,$=

position among the nationali@ed !anks in terms of num!er of !ranches"

Deposit" )d(ances" total Business" operating and net profit in the year +668&6:. The impressi(e operational and financial performance has !een !rought

a!out !y Bank?s focus on customer !ased !usiness with thrust on SM="

)griculture" more inclusi(e approach to !ankingC !etter asset lia!ility

managementC impro(ed margin management" thrust on reco(ery and

increased efficiency in core operations of the Bank3

7!s!on and M!ss!on

7!s!on

8To be a )ead!ng 9lobal +ank w!th "an Ind!a ootr!nts and becomea household brand !n the Indo:9anget!c "la!ns rov!d!ng ent!rerange o !nanc!al roducts and serv!ces sssssssunder one roo8

M!ss!on

8+ank!ng or the unbanked8

2



"erormance %omar!son over the -ears

During the 3K +668&6:" the !ank achie(ed a net profit of 9s 0"6:1 crore"maintaining its num!er ,$= position amongst nationali@ed !anks. Bank hasa strong capital !ase with capital adeuacy ratio at 1.60; as on March?6:.

)s on March?6:" the Bank has the *ross and $et $#) ratio of 1.55; and6.15; respecti(ely. During the 3K +668&6:" its? ratio of priority sector credit

5

All Banks

Average

"un6ab Nat!onal +ank ;"erormance %hart<;Amount !n 's %rore<



to adjusted net !ank credit at 1./0; < agriculture credit to adjusted net!ank credit at 1:.5+; was also higher than the respecti(e national goals of6; < 18;.

Inormat!on S-stem !n "N+

,!stor- o Inormat!on S-stem at "N+

$=== : The +eg!nn!ng

In March +666" the penetration and use of IT was not (ery high at #$B. #$B

was relying on manual processes to collect" store" and analy@e !usiness

data. Its retail !ranches were not connected and it was difficult for

management to understand !usiness dri(ers and impediments. This situation

made it difficult for #$B to pro(ide optimum customer ser(ice and resulted in

lost opportunities. Manual operations were also costly to support. The !ank

used se(en different software" which ran on 10 different fla(ors of J$IL" on

standalone #4s. The /66&odd !ranches were not networked and only 0/

percent of the !anks !usiness was computeri@ed. The o(erall expertise in IT

among users was low.

The Central Vigilance Commission 44% issued a directi(e to the !ank to

computeri@e at least 56 percent of its !usiness !y Decem!er +666. Thisprompted the !ank to work out a strategy to tackle the daunting task in the

short period of time.

)t that time there were (arious factors which caused a !arrier in

implementing an Information System for centrali@ed !anking. These

weaknesses were&

8



• Different Jnix ,S used in different !ranches.

• Different standalone financial applications on #4s at different

!ranches.

• 7ack of interopera!ility due to disparity in systems.

•

7imited expertise on the software packages currently deployed.• Most !ranches did not ha(e a proper 7)$ in place.

#$B hired a consultant and de(ised a two&pronged plan of action. The plan

comprised

• ) short term goal & To meet the 44 deadline of 56 percent computeri@ation.

• ) long term goal & To create a dependa!le core !anking infrastructure and

!uild a nationwide network to connect different !ranches to the core

infrastructure.

#$B chose a product from a company called Nelito. It was a D,S&!ased" #artial

Branch )utomation application. Standalone (ersions were chosen since there

werent 7)$s in place" and deployment of 7)$s at !ranches would take so long that

the 44 deadline couldnt !e met. The interface was simple in design" and thus

easy for the !ank personnel to use.

The !ank reuested 44 for an extension of the deadline and was grantedtime till March +661. By March +661" 56.26 percent of the !anks !usinesswas computeri@ed.

$==#:$==* : The )ong Term Strateg-

In the long&term" #$B wanted a technology that would consolidate all its!usiness resources and sustain the !anks future growth. It also wanted tocreate its own network" which would play a (ital role in its success. Threeconsultants were appointed to re(iew technology options for long&termadoption. The (erdict of the consultants was to deploy a centrali@ed core!anking architecture.

,n 30 March 2001" the !ank used the ser(ices of Infosys for the deploymentof 3inacle. ) core team was selected" which would !e the heart of theproject. Infosys trained +66&odd personnel from a core team o(er six months. The core team modified and customi@ed the package according to its specificneeds.

)s the time passed !esides making a mark in terms of re(enues" the !ankNamong the few technology&sa((y #SJsNset up examples for other !anks"especially #SJs in early of this decade.

:



Institute or !e"elopment an# $esearch in %anking Technology ID9BT%" a#i"ision o the $eser"e %ank o In#ia 9BI%" presented #$B with the award forexcellence in !anking technology in +66+. This was uite an achie(ementconsidering that the technology transformation started only two&and&a&half

years !ack at #$B. In March +666" the !ank had only 02 percent of its!usinesses co(ered on computers" as against 8 percent in +66+.

#$B purchased ser(ers" security infrastructure" and storage euipment anddecided to house it in its own central data center in $ew Delhi. ) lot ofinfrastructure from 4isco has !een used to !uild the data center.

In )pril +66+ the !ank rolled&out 3inacle in 5 !ranches as a pilot (enture. This was done !ecause the !ank had se(en different application packages"and it wanted to ensure smooth migration of the data into 3inacle. By midMay +66+" all data from other software was successfully migrated into

3inacle and !y end of year" the num!er of locations has increased to 1+. )sfar as the centrali@ed core !anking system is concerned" #$B has a datacentre at the corporate office and all these 1+ centers ha(e an extension tothat data. This system ena!les an indi(idual ha(ing an account in any of our!ranches to conduct transactionsHoperate the account from any of these 1+!ranches.

$==/:$==3 5 The 9rowth Stage

In +66" In#ia&s National 'ssociation o otare an# er"ice Companies$)SS4,M% nominated #unja! $ational Bank #$B% as the !est user of

technology in its sector. The !ank continued to spread the technology tomore of its !ranches and centers. The adoption of 4ore Banking Solution not only ensured standardi@ation ofproducts" !ut also ena!led uick launch of the new and inno(ati(e financialproducts ensuring sufficient lead time to market it. The core !anking solutionoffered seamless platform for integrating (arious such initiati(es and alsoreduces the cost of transaction" there!y offering financial products at anafforda!le cost.

,n May 2*+200, #unja! $ational Bank #$B% has introduced -oans an# '#"ances !ata !esk or ."aluations an# $eports" 7)DD=9%" a computeri@ed

management information system for rationali@ation of returns" assetclassification and pro(isioning" credit monitoring and $#) management.

The implementation of the system comprised two modules. The first modulewould reuire !ranches to capture data on !orrowal accounts as a one&timeacti(ity with transaction updates at periodic inter(als.

The second module for implementation of the software en(isages collection

16



of information on the loan accounts from the stage of receipt of applicationto dis!ursement of sanctioned loans.

>ith the implementation of this system" manual collation of a large num!erof loan&related returns !ecome redundant and !ranch staff concentrated on

!usiness de(elopment and o!jecti(e monitoring of asset uality.

$==4 5 'ural In!t!at!ve

Inosys Technologies -t# (Inosys) an# /unab National %ank (/N%) in 200announce# that /N% has chosen inacle rom Inosys to poer its corebanking initiati"e or rural banking deploying 3inacle across #$B?s six9egional 9ural Banks 99Bs% co(ering 1066 !ranches.

#unja! $ational Bank took lead in !usiness excellence and commitment to

customers !y pro(iding core !anking co(erage to its 8/6 ser(ice outlets.

Due to the remoteness of rural !ranch locations" there were issues such asconnecti(ity of !ranches for operational ease" centrali@ation of data" and

enhancement of customer ser(ice as well as inno(ation in !anking products.

Moreo(er" all this is needed at a su!stantially lower cost for 99Bs as their

operations were relati(ely less complex. 3inacle from Infosys recogni@ed this

need of 99Bs and adapted its industry leading core !anking solution to suit

the reuirements of these institutions. #$B management selected this

platform to transform and standardi@e the operations of its 99Bs.

) majority of Indian !anks were already ahead in terms of adoption of new

age technology. =xtending the !enefits of technology to 99Bs helped

sponsor !anks in not just priority sector lending !ut also present an

additional !usiness a(enue with tremendous potential. 3inacle ena!led 99Bs

to !etter manage audit processes" adhere to statutory compliance" enhance

internal MIS reuirements and offer customers competiti(e ser(ices on par

with commercial !anks.

$==> 5 #==? %+S Imlementat!on

In 3e!" +66: Indias second largest pu!lic sector !ank" announced that it has

completed 166 per cent core !anking implementation at its 26 !ranches and

extension counters through the

3inaclea Jni(ersal a Bankinga SolutionafromaInfosys.

The !ank implemented industry&leading 3inacle 4BS across its operations running a

flexi!le and scala!le data!ase platform from ,racle and inno(ati(e and cost&

effecti(e Sun S#)94 enterprise ser(ersafromaSunaMicrosystems.

3inacle has ena!led the !ank to consolidate and centrali@e its operations"

impro(ing !ranch efficiency and producti(ity per employee. 4onsolidation

11

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http://www.ciol.com/News/Newsmakers/News-Reports/Infosys,-LIC-create-history-in-group-insurance/11908110260/0/%20

http://www.ciol.com/News/News-Reports/Oracle-user-groups-improving-Oracle/28708108368/0/


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http://www.ciol.com/News/News-Reports/Oracle-user-groups-improving-Oracle/28708108368/0/



has also resulted in reduction of re(enue leakage and cost" while increasing

ease of technical support and maintenance at !ranches. The solutions

scala!ility has also ena!led the !anks scala!ility to !e the !est in the

countryawithatheanum!eraof apeakatransactionsaata0./amillion.

3urther" the !ank has co(ered all the !ranches under 4BS platform including

extension counters. )s a result" 08 million #$B?s customers are enjoying the

facility of Fone !ank - one accountG. In addition" the !ank has intended to

!uild a data center capa!le of handling !usiness of 2666 !ranches and 1

lakh terminals. The !ank was awarded FIBM green awardG for adopting

en(ironment friendly technology for data warehouse implementation during

the year.

Other +ank!ng Al!cat!ons

The !anking major also introduced a num!er of (alue added ser(ices like)TMs" Tele&!anking" SMS !anking" mo!ile !anking and Internet !anking"remote access facility through its we!site" etc. under a license from 9BI tolaunch Internet !anking.

The !ank also ena!led customers to a(ail of the Straight to #rocessing ST#%facility. The !iggest ad(antage of ST# is that if a person with an account inDelhi deposits a cheue in 4hennai" his account in Delhi gets updated the

1+



same day. #$B?s team has also customi@ed this package to suit the typicalreuirements of a pu!lic sector !ank. F)s #$B handles huge num!er ofgo(ernment accountsNpu!lic pro(ident fund" deposit of income tax" depositof different duties and treasury payments" #$B had to customi@e it and also!uilt a module for go(ernment !usinesses into this package.

The !ank also has a #epository setup to store demateriali@ed sharecertificates% at its corporate office in $ew Delhi and another in Mum!ai.4ustomers owning shares and !onds can deposit them at these depositoriesafter which the hard copies are destroyed. The !ank" on the other hand"keeps a digital copy of all these documents. Thus" one does not ha(e to!other a!out the loss of paper" or a signature that does not match and so on.4ustomers can now instruct the !ank at any point of time to transfer thesesecurities.

)nother (ery interesting de(elopment with #$B is its contract ith In#ian

$ailays. It is putting up an )TM machine at the $ew Delhi station?sreser(ation office" which is going to !e a interface !etween the 9ailways?ser(er and the !ank?s ser(er. ,nce this is functional" customers can collecttheir tickets from the )TM machine and the payment can !e made usingcredit or de!it cards. ,nce this is successful and the interface is done" the!ank plans to ena!le all their )TMs across the country on this platform.

.lectronic !ata Interchange =DI% is another technology initiati(e that the!ank has taken up. It has entered into an agreement with the 4ustomsdepartment wherein the 4ustoms? ser(er is connected with the !ank?scorporate office ser(er" which is further connected to se(eral !ranches of

#$B and also to importers. Thus" whate(er duties are reuired to !edeposited with the 4ustoms department can !e de!ited from the importer?sread customer?s% account automatically. The pilot project for this hasalready !een carried out and the !ank plans to introduce this ser(ice soon.

The #SJ has also introduced !ilingual software known as %ankmate. >iththe help of this software one can generate reports in 'indi and also can gethisHher pass!ook in 'indi. This is already in operation at around (arious!ranches and #$B is also getting orders for this package from other !anks.

"N+@s IT Setu

#$B also has a num!er of applications running on its network like any other3inancial Institution. The !ank has standardi@ed all its platforms on J$ILoperating system and 9DBMS on ,racle. ,ther ,S like Microsoft?s windows+666H L# are also ena!led in centers. )s far as the hardware platform is

10



concerned" #$B has Sun Microsystems? >e! ser(ers at the data centre.)part from this" they are also using 4ompa" IBM and Leon ser(ers. )t somelocations" the !ank is still using D,S machines to run some of their )TMs.

S-stems

Before deploying the core !anking architecture" #$B used ser(ers whichwere $T&!ased" from IBM" and from other (endors. The !ank conducted!enchmarking tests for 3inacle on (arious ser(er platforms. )nd it wassatisfied with the performance of Suns hardware on Solaris. Suns 3ireser(ers" Solaris ,S" and ,racles 9DBMS are now in use.

Network des!gn

4isco has tied up with #$B to e(ol(e the network design and implement a

nationwide network !ack!one to connect all its offices. 4isco will assist the!ank in understanding and implementing the (arious technologiesassociated with the project. The con(erged network infrastructure allowed#$B to standardi@e the applications and software needed to pro(ide the!anking ser(ices. The (arious !ranches are connected to the data centerusing new&world routing and switching technologies.

Storage s-stems

The !ank has followed 9BIs storage reuirement guidelines. #ro(isions ha(e!een made to store transaction data for around 16 years. In some cases"data is stored permanently. )round 12 Sun enterprise class ser(ers areused in D)S architecture. The total capacity is of multiple TBs. The Sunhardware uses an in&!uilt storage management tool. 7ater look o(er astorage management application from =9IT)S.

AN and connect!v!t-

161 !ranches of the !ank were on a >)$ in +666. The !ank put /66&odd!ranches on the >)$ in +66+" and in three years the >)$ had +666&odd!ranches.

The !ank tried a num!er of connecti(ity options. 86+.11! wirelessconnecti(ity was installed in fi(e !ranches to !egin with. The !ank thenexplored the option of leased lines and used connecti(ity from MT$7 andBS$7. It also used Bhartis leased line !etween Mum!ai and Delhi. The !ankalso used 9eliance Infocomms fi!er optic !ack!one along with the leasedlines in locations where the optic fi!er does not reach.

1



#$B had appointed '47 4om&net to carry out +x5 monitoring of thecountrywide network. Theres a li(e link !etween '47 and #$Bs IT headoffice. The network is monitored remotely and can also !e (iewed at the!anks IT facility" where a separate monitoring system is used.

Secur!t- S-stems

Security was especially important !ecause the !ank could afford nocompromise. The security architecture had to !e ro!ust" relia!le" andscala!le to meet current and future needs. 4isco was chosen as the ser(icepro(ider who could meet these stringent reuirements. The !ank uses arange of security products like 3irewalls and IDSs from 4isco for its securityneeds in its 7)$s and >)$. )ll data transactions !etween its routers andswitches are encrypted. It has appointed 9amco Systems as the securityintegrator. The security integrator is responsi!le for the complete securityinfrastructure and is answera!le for any security !reach or lapse. The !ank

appointed security administrators. eriSign pro(ided the necessary #u!licey Infrastructure #I% to the !ank for secure transactions.

Sotware 'esources

#$B is using (arious software?s for its operational acti(ities for its smoothand efficient running" the Software used !y #$B include&

Microsoft office +660 )cro!at 9eader Bank&mate

)ttack 3ilters & Spyware" Trojan" oI# etc. #rotocols & I#" 7)$" D$S" 'TT#" 3T#" T4#" T=7$=T" JT# etc. ,perating System?s& J$IL" Solaris" >indows $T" +666 Ser(er" L#

etc.. Data!ases & MS )ccess" MS SO7" ,racle" 3ox#ro.

,ardware 'esources

To fulfill the reuirement and as per compati!ility with software thesehardware are used&

'47" IBM etc Desktops" #rinter $T Based ser(ers from IBM" Sun?s hardware for Solaris" $etwork 4ards. 9outers" Scanners etcP

1/



Organ!0at!ons Other %omut!ng 'esources

"a-roll Transact!on "rocess!ng S-stem

#ayroll T#S" which is a typical accounting transaction processing systemfound in #$B. ) payroll system keeps track of the money paid to employees. The master file is composed of discrete pieces of information such as aname" address" or employee num!er% called data elements. Data are keyedinto the system" updating the data elements. The elements on the masterfile are com!ined in different ways to create reports of interest tomanagement and go(ernment agencies and to send paychecks toemployees. Management notices the record of the employee?s efficiency towork and may declare added !onus or other incenti(e. This report is checkedand appro(ed !y the !ranch manager after which cheue is issued to theemployee.

Onl!ne Ass!stance#$B pro(ides its customers online assistance !y pro(iding i&!anking" onlinecomplaints" pro(iding them information a!out (arious products and ser(ices. These complaints and assistance are processed !y customer care ser(icesexecuti(e.

Account Oen!ngIn account opening the MIS is used" e(ery information a!out the customer isrecorded like their name" address" account" type of account" accountinformation" their sample signature" these helps in Identification of customer

instantly and creating a data!ase at faster rate. This includes the filling ofK4 and )4 forms.

S"NS ;Shared "a-ment Network S-stem<Swadhan" the first S#$S launched in Mum!ai !y IB). The !anks thatparticipate on this network could issue the cards to customers for transactingon networks.

'T9S ;'eal T!me 9ross Settlement<9T*S System is a payment settlement system that minimi@es the credit riskin the pre(alent cheue clearing system. Jnder 9T*S the funds are settledon a near real time !asis across Banks in different locations. Bank offers thisimmediate electronic fund transfer facility to 9T*S ena!led !ank !ranchesacross through the country its designated 9T*S ena!led locations.

Mob!le Alert Serv!ce

12



The clients now ha(e the facility to su!scri!e to Mo!ile )lert Ser(ice forrecei(ing alerts on registered mo!ile phone num!ers instantly after thefunds are pooled.

Imact o Inormat!on S-stems

)n information system is there to empower its users. ) data!ase simplypro(ides data" !ut an information system is all a!out pro(iding the !estinformation the user needs to do their task more effecti(ely. It also takes intoaccount that different users doing their own specific tasks may need to see

their information presented in differing ways. The !enefits of an informationsystem follow when the user can uickly access" understand and respondcorrectly to that information. The implementation of Information Systems in #$B and other financialinstitutions had a (ast impact on the =mployees the way they work%"4ustomers" The industry < *o(ernment. The system pro(ides information onthe past" present and project future and on rele(ant e(ents inside andoutside the organi@ation.

(!nacle@s Imact

3inacle core !anking solution is a comprehensi(e" integrated yet modular!usiness solution that effecti(ely addresses the strategic and day&to&daychallenges faced !y !anks. It is highly parameteri@a!le pro(iding that much&needed flexi!ility to adapt to a dynamic en(ironment.

The solution has an integrated 49M module ena!ling !anks to offer a richand differentiated (alue proposition to customers. The layered Ser(ice,riented )rchitecture S,)%" ST# capa!ilities" we!&ena!led technology and+ L 5 operations ensure multi&channel" multi&country and multi&currencyimplementations. The functionality&rich modules in the solution pro(ide

!anks with a (aried palette of features to continuously inno(ate on theirproduct and ser(ice offerings. >ith 3inacle core !anking solution" !anks canmeet the challenges of managing change" competition" compliance andcustomer demands effecti(ely.

• D!erent!ated "roduct Sread

15



3inacle core !anking solution offers an unlimited palette of features for!anks to design and deploy products for (arying market segments. Theproduct !undling capa!ilities of the solution offers a wide range ofpossi!ilities for !anks to create products with inno(ati(e features. Thefacilities pro(ided for differential pricing" channel rules and customi@ation

through 3inacle Studio - the scripting engine" empower !anks tocontinuously inno(ate and extend their suite of products" across segments.

• Ag!le Oerat!ons The Ser(ice ,riented )rchitecture S,)% ena!les the IT team at the !ank toeffect changes without touching the !ase code" ensuring lesser (endordependency and faster adapta!ility to changing !usiness conditions.

• 'obust %ross:sell (ramework The 4I3 and 49M capa!ilities in 3inacle offer a unified (iew of the customer

across the entire solution and across multiple !ack&end applications"ena!ling the !ank to (iew the customer from a completely informed angle. This empowers !anks to effecti(ely manage customer relationships andaggressi(ely explore cross&sell opportunities.

• Increased Oerat!onal E!c!enc!es and "roduct!v!t- 3inacle core !anking solution supports !usiness e(ents automation andprocess orchestration" thus eliminating manual tasks and reducing processtime. The elimination of error and data redundancies also results inincreased !ranch producti(ity. Straight through #rocessing ST#% a!ilitiesenhance reduction in turnaround and processing time" increasing output andena!ling speedy completion of tasks. The multilingual we!&!ased singlerepository of information ena!les remotely located !ankers to colla!orateand transact seamlessly.

Imact on Emlo-ees

Information System ser(es employees with user friendliness" easy storageand access of data" remo(al of redundancies" fastening up of the processesand pro(iding up of multiple (iews at same time.

In !eginning the issues were mostly cultural. Most staffers were used toworking in a manual en(ironment" and some had worked in standaloneen(ironments. In the new networked en(ironment" personnel at thenodeHcounter didnt actually see the transactions updating in the (ariousaccount !ooks. This ga(e rise to a num!er of ueries and suggestions frompersonnel. It took around six&eight months for the personnel to felt that the

18



en(ironment change had done them good" and they were used to workingon the systems.

Other Ava!lable Alternat!ves

The Indian !anking sector is slowly coming of age and hand grooming thissector is the !anking solution market" which has car(ed a name for itself inthe glo!al arena. $ot to forget the pro&acti(e go(ernment reforms that arehelping the Indian !anking market reach greater heights and adding glit@and glamour to Indian economy as a whole. ,ther then 3inacle from Infosysthere are (arious a(aila!le alternati(es for which the !anking industry and

financial institutions can opt. These are&

Q ,ffice )ccounting #rofessional +66:Q S)# =9# 3inancialsQ Tally : 3inancial )ccounting and In(entory Management SoftwareQ 3lexcu!e - Ei&flex solutions?Q 'yperion 3inancial Management & System :

>hile in past i&flex solutions? flagship product 3lexcu!e has !een rated theR1 !anking product in the world !y J !ased IBS" an independent !ankingsolutions rating (endor" !ut Infosys Technologies?? 3inacle doesn?t took longenough to o(ertake 3lexcu!e. But now a day?s S)# =9# programmes aregi(ing a tough competition to 3inacle.

1:



%onclus!on

) management information system is a system or process that pro(ides the

information necessary to manage an organi@ation effecti(ely. MIS and the

information it generates are generally considered essential components of prudent

and reasona!le !usiness decisions. This report starts with the #unja! $ational Bank

with o(er(iew of #$B followed !y history of information system and the steps taken

!y #$B to !e effecti(e in !anking industry !y using information?s technology.

Information Technology IT% inno(ations in the last few years ha(e changed the

landscape of !anks in India. Today" IT seems to !e the prime mo(er of all !anking

transactions. =lectronic and Information Technology together are !ringing a swift

change in the way !anks operate" especially offering !etter deli(ery channels and

customers? friendly ser(ices. )nywhere !anking" tele!anking" mo!ile !anking" net

!anking" automated teller machine)TMs%" credit cards" de!it cards" smart cards"

call centers" 49M" data warehousing ha(e totally transformed the !anking industry.

Today almost all the major !anks in India like I4I4I Bank" JTI Bank" 4iti!ank"

Standard 4hartered Bank" )B$ )mro" SBI and #$B are offering online ser(ices totheir customers. )TMs ha(e emerged as the most fa(ored channel for offering

!anking ser(ices to the customers in the world.

,ne of the !iggest !enefits that the !ank has deri(ed out of IT has !een the

tremendous sa(ing on recruitment frontNthe !ank has not recruited more staff

e(en while the !usiness and work pressures ha(e gone up fi(e times. 4onseuently"

#$B?s profita!ility has also increased. To train users the !ank has set up more than

+6



1/ computer training la!s across the country. It explains all the T#S how the

transactions are made !y the !ank" using of these T#S from the new e(ents such as

account opening" new allowances etcP to the routine work including cash and

payments record" updating of records" payroll and the processing of the complaints.

These T#S holds all the acti(ities from the manager and employees to the

customers. The report discuses the in!ound and the out!ound logistics and relateall the processes of T#S used in the !ank with the Information System is ena!ling

the !ank to pro(ide the uality and satisfactory ser(ices to their customers.

Suggest!ons

The !ank is using information system efficiently and it has increased thecustomer satisfaction" efficiency" data storage" fast data retrie(al. But toimpro(e more and regarding future success of #$B here are the some

suggestions.

The !ank must update 'ardware to get maximum performance fromInformation Systems in order to allow the IS to procure the leastamount of system resources it reuires for functioning.

The !ank should update all their software" networks etc to keepinformation system up to date for competiti(e edge" customersatisfaction.

Steps should !e taken to increase the safety < to a(oid theunethical practices like phishing.

$eed for impro(ed training for using Information Technology andtools to employees.

Intra firm communication should !e impro(ed.

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'eerences

ebs!tesB:

[email protected]+6606/Htech.shtml

httpHHwww.expresscomputeronline.comH+66+1+6+H!anks5.shtml

httpHHwww.!usiness&standard.comHindiaHnewsHpn!&to&implement&loan&data&softwareH1/181:H

httpHHwww.financialexpress.comHnewsHpn!&in&networking&pact&with&ciscoH2+:2H

httpHHwww.pn!india.comH

httpHHnetpn!.comH

+ooksB:

#$B ision +665&+668 onal Training 4entre *uide.

++

http://www.networkmagazineindia.com/200305/tech4.shtml

http://www.expresscomputeronline.com/20021202/banks7.shtml

http://www.business-standard.com/india/news/pnb-to-implement-loan-data-software/151819/


http://www.financialexpress.com/news/pnb-in-networking-pact-with-cisco/64296/


http://www.pnbindia.com/

http://www.networkmagazineindia.com/200305/tech4.shtml

http://www.expresscomputeronline.com/20021202/banks7.shtml





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