Introduction

Banks are the most important financial institutions in a modern economy. They are an
integral part of modern economic activities. They help accelerate the pace of
development process by securing uninterrupted supply of financial resources to people
engaged in numerous economic activities.

The banks act as financial intermediaries i.e. mobilization of funds from

small depositors and allocate them to entrepreneurs for investments. Though initially the
major function of banking was to mobilize savings and transfer them to entrepreneurs,
over the time they have come to perform a number other functions as well. In addition
to offering their services for safe custody of money and other valuables, they also offer
demand deposits, easy transfer of money, letters of guarantees, collection of utility bills
and loans for consumer durables and investments.

Thus the operation of banks is vital for any economy. The Indian banking
industry has been growing for the last three decades. The number of banks operating
within the industry has increased by ten folds over the years. Currently there are 27
public sector banks and 18 private sector banks that are operating in Inida. For a
growing economy like India , efficient operation and growth of these banks are vital.

ABOUT THE ORGANIZATION :

As a bank, Canra Bank also provides the above services. It is a well-known Bank in our
country and has gained firm confidence in the minds of its clients within a short period
of its operation. The success is primarily attributed to prompt and bold decision-making,
efficient and cordial services, economic use of resources and introduction of new
financial products and technologies.

The Canra bank has been widely acclaimed by the business community, from
small entrepreneurs to large traders and industrial conglomerates, including the top rated
corporate borrowers for forwarding-looking business outlook and innovative financing
solutions.
Thus for long period of time it has been able to create an image for itself and
has earned significant reputation in the country‟s Banking Sector as a bank with vision.
 Objectives
The main objective of the report will be to provide an overview of the “General
Banking Activities of Canra Bank ‟‟- a study on Paonta Sahib Branch (H.P)with
fulfilling the requirement of BBA program. However, the objective behind this study is
something broader.

Objectives of the report are summarized in the following manner-

1) To analyze the general banking activities of Canra Bank.

2) To identify problems related to general banking activities of Canra Bank.

3) To make some recommendations to solve the problems of Canra Bank.

4) To know about the rules and guidelines of the banking system.

5) To acquire an in depth understanding of the functions of each department.

6) To understand the procedures of new account opening.

7) To gain knowledge about customer handling.

8) To use my gained knowledge in future in banking sector.

 Literature Review
I. Levine 1997:
"Banks also play an important role in diminishing informational asymmetries and risks
in the financial system. Hence, the study of the banking industry and its impact on the
economy is of the utmost importance. The effects of concentration and competition on
bank performance are pertinent since they have important policy implications. A recent
global trend of consolidation in the banking sector has intensified, generating important
debates on its effects on the profitability of banks, consumer costs, the efficiency in
allocating resources in an economy, and on overall financial stability.

II. Berger, Demirguc-Kunt, and Haubrich( 2003):

"Banks are important in mobilizing and allocating savings in an economy and can solve
important moral hazard and adverse selection problems by monitoring and screening
borrowers and depositors. Besides, banks are important in directing funds where they
are most needed in an efficient manner and have direct implications on capital
allocation, industrial expansion, and economic growth.

III. Shelagh Heffernan (2005):

“The bank is one of the financial institutions. But it differs from other firm because the
bank collects money from customer as a deposit and gives money to customer as a loan.
So the bank acts as financial intermediaries between the depositors and borrowers.
Deposits are liabilities to the bank. Deposit must be maintained by the bank to
maximize the profit”.

IV. Barbara Casu (2006):

“The bank maintains financial statement such as balance sheet and profit and loss
account to measure their financial performance. Main source of bank is a customer
deposit. Deposits are reported on the balance sheet as a liability. These deposits are used
by the bank for investment. This is assets for the bank. The bank capital arises from
different between the total liability and total asset. On the other hand bank increasing
their fund by issuing bonds and equity”.
 Research Methodology
Research methodology is a science of studying how research is to be carried out.
Essentially, the procedures by which researchers go about their work of describing,
explaining and predicting phenomena are called research methodology. It is also defined
as the study of methods by which knowledge is gained.

It is the essential part of the study and the process of collecting information and
arranging it in terms of the relevant issues of the study. Formal &oral discussion, direct
observation, questioning clients & printed papers of the bank were found useful. It is
designed in a way so that it correspondent to achieve the objectives of the study.

Research Design:
It is based of descriptive research that is a research that explore and explain an
individual, group or a situation.Descriptive research is “aimed at casting light on current
issues or problems through a process of data collection that enables them to describe the
situation more completely than was possible without employing this method.

Sources of Data
I have collected data from both of these two sources. During the internship program, I
have collected data from the personnel of Canra Bank.
There are two sources for data collection which are as follows :

1. Primary source :
Primary data means original data that has been collected specially for some purpose . It
means someone collected the data from the original source first hand. It includes the
fresh or completely new data sources collected for a
specific purpose, such as:

 Interviews with departmental head.

 Departmental surveys.
 Observation.
 On the job trainings.
 Practical working experiences.
2.Secondary source :
Secondary data refers to data which is collected by someone who is someone other than
the user. Common sources of secondary data for social science include censuses,
information collected by government departments, organisational records and data that
was originally collected for other research purposes.

It includes all presented and published information.

• Research papers
• Articles
• Banking journals
• Banks’ website
• Study materials
• Different text books.
• World Bank’s Security publication.