ULHASNAGAR-421001
Name
: Riddhi Chugh
Class
: [Link] I
Subject
:ADVANCED FINANCIAL ACCOUNTING
Roll No
: 08
Topic
: Banking regulations & annual report on
canara bank
Semester
:I
Guidance
:Prof. Taruna Makhija
Academic Year : 2015-2016
DECLARATION
I, Riddhi Chugh The Student Of [Link] Girls College
[Link] Part 1, Hereby Declare That I Have Completed This Project
Banking regulations & annual report on Canara Bank In
The Academic Year [Link] Information Submitted Is The
True And Original To The Best Of My Knowledge.
Student signature
CERTIFICATE
I, [Link] MAKHIJA hereby certify that Riddhi Chugh
of [Link] PART-1 Master of Commerce of [Link]
GIRLS COLLEGE Ulhasnagar 421001 has completed the project
entitled Banking regulations & annual report on CANARA
BANK. In the academic year 2015-2016 under my guidance.
The information submitted is true and original to the best of my
knowledge.
[Link] MAKHIJA
SIGNATURE
[Link] SADHUBELLA GIRLS COLLEGE
UNIVERSITY OF MUMBAI
CERTIFICATE
This is to certify that Riddhi Chugh master of commerce (semester
1) for the academic year 2015-2016 has completed the project on
Banking regulations & annual report on CANARA BANK
under the guidance of [Link] MAKHIJA.
Prof. Taruna Makhija
Prof. Kiran menghani
(Project guide)
(Co-ordinator)
R.H. Suryarao
(Principal)
External Examiner
ACKNOWLEDGEMENT
I express my sincere gratitude to my project guide, [Link]
MAKHIJA under whose guidance I pursued my project and without
whose kind help this project would not have been possible.
I would also like to express my sincere thanks to all respondents for
their cooperation. I am extremely obliged and highly thankful to all
those who have contributed to completion of this project.
OBJECTIVES OF THE PROJECT
The objective of our project is: Consumer awareness about the products and services provided
by the canara bank.
Consumer preference about various products and services.
Customers perception towards private Banking and their
expectations from private banks.
Customer satisfaction with the service provided by the bank.
Draw out with conclusions and suggestion based on the analysis
and the interpretation of data.
Introduction of Banking companies
Banking in India in the modern sense originated in the last
decades of the 18th century. Among the first banks were the Bank of
Hindustan, which was established in 1770 and liquidated in 1829-32;
and the General Bank of India, established 1786 but failed in 1791.
The largest bank, and the oldest still in existence, is the State Bank
of India. It originated as the Bank of Calcutta in June 1806. In 1809, it
was renamed as the Bank of Bengal. This was one of the three banks
funded by a presidency government; the other two were the Bank of
Bombay and the Bank of Madras. The three banks were merged in
1921 to form the Imperial Bank of India, which upon India's
independence, became the State Bank of India in 1955. For many
years the presidency banks had acted as quasi-central banks, as did
their successors, until the Reserve Bank of India was established in
1935, under the Reserve Bank of India Act, 1934.
In 1960, the State Banks of India was given control of eight stateassociated banks under the State Bank of India (Subsidiary Banks)
Act, 1959. These are now called its associate banks. In 1969 the
Indian government nationalized 14 major private banks. In 1980, 6
more private banks were nationalized. These nationalized banks are
the majority of lenders in the Indian economy. They dominate the
banking sector because of their large size and widespread networks.
The Indian banking sector is broadly classified into scheduled
banks and non-scheduled banks. The scheduled banks are those which
are included under the 2nd Schedule of the Reserve Bank of India
Act, 1934. The scheduled banks are further classified into:
nationalized banks; State Bank of India and its associates; Regional
Rural Banks (RRBs); foreign banks; and other Indian private sector
banks.
History of banking companies
The history of banking refers to the development of banks and
banking throughout history, with banking defined by contemporary
sources as an organization which provides facilities for acceptance of
deposits, and provision of loans.
The history begins with the first prototype banks of merchants of
the ancient world, which made grain loans to farmers and traders who
carried goods between cities. This began around 2000 BC in Assyria
and Babylonia. Later, in ancient Greece and during the Roman
Empire, lenders based in temples made loans and added two
important innovations: they accepted deposits and changed money.
Archaeology from this period in ancient China and India also shows
evidence of money lending activity.
Many histories position the crucial historical development of a
banking system to medieval and Renaissance Italy and particularly the
affluent cities of Florence, Venice and Genoa. The Bardi and Peruzzi
families dominated banking in 14th century Florence, establishing
branches in many other parts of Europe.[2] Perhaps the most famous
Italian bank was the Medici bank, established by Giovanni Medici in
1397.[3] The oldest bank still in existence is Monte dei Paschi di Siena,
headquartered in Siena, Italy, which has been operating continuously
since 1472.
The development of banking spread from northern Italy throughout
the Holy Roman Empire, and in the 15th and 16th century to northern
Europe. This was followed by a number of important innovations that
took place in Amsterdam during the Dutch Republic in the 17th
century, and in London in the 18th century. During the 20th century,
developments in telecommunications and computing caused major
changes to banks' operations and let banks dramatically increase in
size and geographic spread. The financial crisis of 20072008 caused
many bank failures, including some of the world's largest banks, and
provoked much debate about bank regulation.
Functions of bank
A.
Primary Functions of Banks
The primary functions of a bank are also known as banking functions.
They are the main functions of a bank. These primary functions of
banks are explained below.
1.
Accepting Deposits
The bank collects deposits from the public. These deposits can be of
different types, such as:a.
b.
c.
d.
Saving Deposits
Fixed Deposits
Current Deposits
Recurring Deposits
2. Granting of Loans and Advances
The bank advances loans to the business community and other
members of the public. The rate charged is higher than what it pays on
deposits. The difference in the interest rates (lending rate and the
deposit rate) is its profit.
The types of bank loans and advances are :a.
Overdraft
b.
Cash Credits
c.
Loans
d.
Discounting of Bill of Exchange
B.
Secondary Functions of Banks
The bank performs a number of secondary functions, also called as
non-banking functions.
These important secondary functions of banks are explained below.
1. Agency Functions
The bank acts as an agent of its customers. The bank performs a
number of agency functions which includes:a.
Transfer of Funds
b.
Collection of Cheques
c.
Periodic Payments
d.
Portfolio Management
e.
Periodic Collections
f.
Other Agency Functions
2. General Utility Functions
The bank also performs general utility functions, such as:a.
b.
c.
d.
e.
Issue of Drafts, Letter of Credits, etc.
Locker Facility
Underwriting of Shares
Dealing in Foreign Exchange
Project Reports
f.
g.
Social Welfare Programmes
Other Utility Functions
Introduction of canara bank
Canara Bank is an Indian state-owned bank headquartered in
Bangalore, in Karnataka. It was established at Mangalore in 1906,
making it one of the oldest banks in the country. The government
nationalized the bank in 1969.
As of March 2015, the bank had a network of 5705 branches and
more than 9039 ATMs spread across India. The bank also has offices
abroad in London, Hong Kong, Moscow, Shanghai, Doha, Dubai, and
New York.
Balance sheet
(Rs crore)
Profit & Loss a/c
Founder OF CANARA BANK
Founded as ' Canara Bank Hindu Permanent Fund'
in 1906, by late Shri Ammembal Subba Rao Pai, a
philanthropist, this small seed blossomed into a
limited company as 'Canara Bank Ltd.' in 1910 and
became Canara Bank in 1969 after nationalization.
"A good bank is not only the financial heart of the community, but
also one with an obligation of helping in every possible manner to
improve the economic conditions of the common people" - A. Subba
Rao Pai.
Founding Principles:1. To remove Superstition and ignorance.
2. To spread education among all to sub-serve the first principle.
3. To inculcate the habit of thrift and savings.
4. To transform the financial institution not only as the financial
heart of the community but the social heart as well.
5. To assist the needy.
6. To work with sense of service and dedication.
7. To develop a concern for fellow human being and sensitivity to
the surroundings with a view to make changes/remove hardships
and sufferings.