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, B ank, 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 i n 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 s ame 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
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State Bank of Mysore
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State Bank of Patiala
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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
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Bank of Nova Scotia
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Bank of Tokyo Mitsubishi UFJ
•
Barclays Bank
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BNP Paribas
•
Calyon Bank
•
Chinatrust Commercial Bank
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Citibank
•
DBS Bank
•
Deutsche Bank
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Hongkong & Shanghai Banking Corporation
•
JP Morgan Chase Bank
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JSC VTB Bank
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Krung Thai Bank
•
Mashreq Bank
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Mizuho Corporate Bank
•
Oman International Bank
•
Shinhan Bank
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Societe Generale
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Sonali Bank
•
Standard Chartered Bank
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State Bank of Mauritius
•
UBS AG
Other Scheduled Commercial Banks: •
Axis Bank
•
Bank of Rajasthan
•
Catholic Syrian Bank
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City Union Bank
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Development Credit Bank
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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
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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 c entral 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 rechristened 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
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Andhra Bank
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Bank of Baroda
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Bank of India
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Bank of Maharashtra
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Canara Bank
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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
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State Bank of Patiala
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State Bank of Saurashtra
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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 p eople 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 a s 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 cooperative, 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 cooperative 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 (Cooperative 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 f ollowing 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, r epayable 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 l etters 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, quali ty 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 s tatement 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 s upport (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 "twotailed" 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 r esearch 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 be falsifiable 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 usermatch). 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 noninfringing 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.
