Bank Operations Management

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Banking Operations

Management Assignment: Operations of a Branch



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Bank of India

Branch: Vishrantwadi

Branch Opened on: 7 Sept, 2009

Service area Characteristics:

1. Geographic: Vishrantwadi area is situated on the Northern Boundary of Pune City, near to Airport and Khadki

Cantt. Area. The area remained undeveloped till recently, when PMC decided to widen the main connecting

road to Vishrantvadi and Yerwada to 8 lanes. The area has seen huge investments in Reality with many

Housing Societies being developed. Shown below is the Geographic map of Vishrantwadi Area along with the

immediate neighbors.

The major localities around Vishrantwadi are:

a. Village Kalas in north.

b. Village Dhanori in North-east

c. Tingrenagar in East

d. Phulenagar In south

e. River Mula in the west. Also the land proposed for new Domestic Airport is on the west of Vishrantwadi.



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2. Demographic: The total population of Kalas and Vishrantwadi is 16888 as on 2007 (source PMC). Tingrenagar

is a high density population area which can increase the service area population to 30000.

3. Economic : Vishrantwadi is primarily a residential area. Most of the Population living in Vishrantwadi and

surrounding area belongs to Middle Income group and Low income group. As many residential complexes are

under construction in the area, a large number of temporary housing establishments for workers can be

spotted. Nowadays, Vishrantwadi has evolved as a preferred place for living for Young IT Professionals,

because of low rental costs in the area. This has improved the economic condition of the area.

New shopping complex have also opened in the area, along with Shoppers Orbit (where the branch is

located) being the biggest one. With opening of Big Bazaar in Shoppers Orbit and various other Retail Outlets

like Spinach and More, the area is rapidly becoming the preferred place of living.

4. Competitive: The area had only one Bank branch (Bank of Maharashtra) till 2008. Recently the no of

branches in the area have increased to 6 with Bank of India, Union Bank of India, Saraswat Bank, Corporation

Bank and HDFC Bank opened their branches. All the branches are within a distance of 200 meters from Bank

of India Branch . This has led to a high competition among the branches. But, with rapid increasing population

in the area, the branches are faring well.

Floor Area: 2000 sq. feet : The branch is newly build and hence the counters are so placed keeping in mind the

ease for customers. The ambience of the branch is pleasant with lots of open space inside the branch.

Deposit : 50 Crores

Advances: 11 Crores

Deposit Accounts: 5000

Loan Accounts: 600

Branch Timing: 10 am to 5 pm

Transactions: 300

Cash: 200 (both credit and debit inclusive)

Transfers: 100 (both credit and debit inclusive)

Clearing : 60-70 per day

Staff:

Manager: 1

Officers: 2

Clerks: 4

Others: 1



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No. JobManpowerDeployment

Officer Clerk Others

1 Cash Counter 1 2

2 Transfers Counter 1 2

3 Passbook Counter 1 2

4 Deposits Department 1 2

5 Govt. Business Dept

6 Clearing Dept. 2

7 Advances Dept. 2 1

8 Establishment Dept.

9 Relationship Manager

10 Safe Deposit Vault/ Locker 1

11 Dispatch Dept.

12 Steno-typist

13 Telephone Operator

14 Leave Reserve

There are 2 separate counters for cash related transactions which are manned by Clerks. These counters process all

Cash, Transfers, Passbook and Deposits related transactions.

Clearing of cheques is handled by same 2 clerks. This Operation normally consists of sending the cheques to the

Service branch.

Advances Dept. is handled by the Manager himself along with one officer and one clerk. Majority of Loans given by

the bank are Home Loans and Vehicle Loans. Based on the profile of the customers and the documents produced

by him, the loan processing typically takes 2-3 weeks time.

There is no Central Processing Cell of Bank of India in Pune, hence all the work related to screening, checking, and

processing of Loan applications is done in the Bank only.

The Branch have a Safe Deposit Vault/ Locker which is checked by 1 officer.

The Branch also have a onsite ATM which has seen a steep increase in transactions volume after the inauguration

of Big Bazaar in the same complex. The complex have huge parking area in front which is open for all the customers

of Shoppers Orbit.



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SWOT Analysis of Branch:

Strengths:

1. The Branch is located in main market area with ease of accessibility. Moreover, the Branch is located in the

first big Shopping Complex build in the area. The Branch has huge visibility from the main road.

2. Being a Bank with roots in Maharashtra gives in an added advantage. The Branch staff is well conversed in

Marathi Language and hence can cater t the needs of Local people in a better way.

3. The Branch is one of the early branches opened in the area, hence early-mover advantage is there.

4. The Branch is spacious and ambience is good, hence attracting a lot of young IT professionals coming to

reside in Vishrantwadi area.

Weakness:

1. The Branch is not able to use its resources to expand its business as it should have done in 1.5 Years.

Opportunity:

1. The branch has huge opportunity in respect of coverage, because the residential colonies are still

developing. The branch can develop the House-Loan Portfolio and also the term deposits.

2. Because of no bank branch in the area for a very long duration and presence of Low and Middle Income

group in the Area, there is still a lot of potentially unbanked customers. These customers can provide extra

source of business for the branch.

Threat:

1. Competition due to other banks opening their branches in the area, is very high.

2. If the area is not developed as expected, it can lead to huge losses for the Bank.

With huge investments flowing in, along with increased spending in infrastructure, Vishrantwadi is growing fast.

This growth has resulted in a increased demand for Banks in the area, hence there is a huge potential of growth for

banks in the area. According to the rough estimates by the Manager, an increase of 25% in both Deposits and

Advances is expected in next Financial Year.

Bank Operations Management

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