DECLARATION

I, RENU PRAJAPATI hereby declare that the project report entitled “STUDY OF
FINANCIAL STRUCTURE & FUNCTIONS OF BANKING” has been written by me on

the basis of books, internet and the data provided by company and has not been
submitted anywhere in any manner.

DATE 27/10/2010 NAME : - RENU

PRAJAPATI

CLASS : - M COM (PREVES)

ROLL NO. : - 1024135

ADDRESS : - 32/ RACHNA

NAGAR BHOPAL (M.P.)

PHONE NO. : - 9300714240

 Certificate

This is to certify that Ms. RENU PRAJAPATI has visited our office for her project

work. During the project work and behavior was satisfactory.

Signature :

Name :

Designation:

Office:
 ACKNOWLEDGEMENT

In order to accomplish a task, integration of various factors like situations,

motivation, persons etc. is very crucial to form a platform for pursuing the task
effectively and diligently because no task is a single man’s effort.

Hence the success of preparing this report becomes possible by contribution of

numerous individuals towards it. It would be greatest pleasure for me to express
my intellectual debt of gratitude to the contribution of such individuals.

I also thank DR PUSHPLATA CHOUKSEY for steering my confidence and

capability for giving me insight into PROJECT by giving me exposure to the arena
of competitive and real world.
 TITLE OF THE PROJECT

 Study of the functioning and management of the bank and their

selection and staffing process .

 What is your motive behind the section of the course ?

 My main motive is to study the functioning of the bank and understand the
importance of saving and investments so as how to strengthen the
financial position .
 DESCRIPTION REGARDING EFFORTS INVOLVNED IN
FINDING OUT THE VARIOUS EMPLOYMENT
OPPORTUNITIES IN THE FIELD OF EMPLOYMENT

 NAME OF THE OPTION

Branch Manager

 STATED OPTION IS RELATED TO WHICH AREA ?

Semi Government and private

 FROM WHERE DO YOU GET THE MOTIVATION REGARDING

CHOOSING THE OPTION

The functional structure of the bank motivated and influenced me. It has
always been the subject of query to me that how they manage the money of
many people and from where they get money to lend.

MINIMUM QUALIFICATION REQUIRED

 EDUCATIONAL
Must be a Graduate from a recognized university with 55% aggregate.

 TECHNICAL
Certificate in computer operations from a reputed institute OR must have
studies computer science in degree level.

 Experience
EXPERIENCE IS NOT A COMPULSORY CONDITION BUT AN EXPERIENCE FOR THE
PERSON CAN BE HELD BOON FOR HIM AND CAN GET HIM GOOD SALARY .

 ANY ADDITIONAL EDUCATIONAL QUALIFICATION

 NO SUCH CONDITIONS ARE REQUIRED.

 COMPETITIVE EXAMS FOR THE OPTION

The selection process for Probationary Officers posts involves Written test (Objective,
Descriptive) and interview.

 TRAINING REQUIRED
EVERY BANK HAS ITS OWN CRITERIA OF TRAINING . THEY THEMSELVES OFFER
TRAINING TO THEIR EMPLOYEES .

 FROM WHERE I GOT THE REQUIRED INFORMATION

INTERNET
NEWSPAPER
CENTRAL BANK OF INDIA
STATE BANK OF INDIA

DATEWISE DESCRIPTION OF VISITED INSTITUTIONS AND INFORMATION

RECEIVED FROM THEM OF THE RELATED OPTION

NAME OF BRIEF
S NO. NAME OF CONCERNED DESCRIPTION OF
DATE INSTITUTION PERSON INFORMATION
RECEIVED

1 22/10/2010 CENTRAL M.K. SACHAN ROLE OF BANK

BANK OF
INDIA

2 23/10/2010 STATE BANK MS.SHELLY ROLE AND

OF INDIA GILL FUNCTIONS

 DESCRIPTION OF VARIOUS EFFORTS INVOLVED IN COLLECTING

REQUIRED INFORMATION
THE OFFICIALS OF THE BANK WERE VERY HELPFUL AND THEY HELPED
GENEROUSLY IN PROVIDING INFORMATION OTHERWISE IT WOULD HAVE BEEN A
TOUGH JOB . THE

 FUTURE PROBLEMS AND THEIR SOLUTION

 Due to emergence of private sector in banking , there has been an
increased competition in every field . thus every one is wanting cream. So the
person who is best in his work will be chooses. Now only booking knowledge is
not sufficient, one should be an allsounder.

 DURING PROJECT WORK, WHAT DIFFERENCES WE FOUND BETWEEN

CLASSROOM AND THEORETICAL KNOWLEDGE AND THEIR PRACTICAL
APPLICATION
DURING CLASSROOM STUDIES OR THEORETICAL STUDIES WE TAKE FEW
EXAMPLES AND STUDY ABOUT THEIR INFERENCES AND THEN CONCLUDE , BUT
WHILE DOING IT PRACTICALLY WE HAVE TO WORK REALLY HARD AND LEAVE NO
STONE UNTURNED . THEREFORE , WE SHOULD TAKE THEORETICAL KNOWLEDGE
SERIOUSLY BECAUSE THEORY AND PRACTICAL ARE TWO SIDES OF ONE COIN .

 WHAT ARE OTHER EXPECTATIONS FROM THEORETICAL STUDIES

THEORETICAL STUDIES SHOULD BE MADE MORE COMPLEX TO MATCH THE LEVEL
OF PRACTICAL STUDIES .
INSTEAD OF FEW EXAMPLES, WE SHOULD STUDY ON LARGE SCALE BASIS , SO THAT
WE DON’T FACE PROBLEMS DURING PRACTICALS .
 INTRODUCTION

A modern industrial society cannot be run by financing of entrepreneurs

some institutional assistance is necessary to mobilize the saving of the community
and to make them available to entrepreneurs the people, a large majority of who
save in small add lots . also want an institutional which can ensure safety of their
funds together with liquidity .

BANK ASSURE THIS WITH A FURTHER FACILITY- THAT THE

FUNDS CAN BE DRAWN BACK IN CASE EF NEED

From broader social angle, banks acts as a bridge between the users of
capital and those who save but cannot use the funds themselves. The idle
resources of the community are thus activated and brought to productive use.
 ROLE OF BANKS

Bank play a very useful and dynamic sole in the economic life of every
modern state. Their economic importance may be viewed in the following points.

I. A developing economy needs a high rate of capital formation to accelerate

the tempo of economic development. But economic development depends
upon the rate of saving. Banks offer facilities for beeping saving and thus
encourage the habits of thrift in the society.

II. Not only do the banks encourage savings but they also mobilize savings
done by several households and make them available for production and
investment to the entrepreneurs in various sectors of economy.

III. Allocation of funds or economic surplus among different sectors users or

producers so as to make minimum social , users or producers so as to make
maximum social return and thus to ensure and thus to ensure optimum
utilization of savings another function performed by banks.
 FUNCTIONS OF A BANK

I. RECIEPTS OF DEPOSITS :- A bank receives deposits from individuals,

firms and other institution. Deposits constitute the main resource of a bank
such deposits may be of different types. Deposits which are called demand
or current deposits, other are called time deposits saving deposits are those
from which withdrawals are not restricted as regards the amount and the
period. deposits withdrawal after the expiry of an agree period are known as
fixed deposits. Interest paid by banks is different for each kind of deposits.

II. LENDING OF MONEY :- Banks lend money mainly for industrial and
commercial purposes. This lending may take the form of cash credits
overdrafts, loans and advance or discount of bills of exchange. Interest
charged by banks on these lending varies according to the amount, time
period etc.

III. AGENCY SERVICES :- A bank senders various services to consumers

such as …………
1. Collection of bills, promissory notes and cheques.
2. Collection of dividends interest , premium etc.
3. Purchase and sale of shares and securities .
4. Acting as trustee or executor when so nominated .
5. Marking regular payments. As insurance premium.
 STUDAY OF FINANCIL&STRUCTURE FUNCTION OF
BANKING ”

A PROJECT REPORT SUBMITTED IN PARTIAL FULFILLMENT OF THE

REQUIREMENT FOR THE DEGREE OF MASTER OF COMMERCE(2010-2012)

SUBMITTED BY:

RENU PRAJAPATI

ROLL NO.102135

UNDER THE GUIDENCE OF

DR. PUSHPLATA CHOUKSEY

SAROJINI NAIDU GOVERNMENT GIRLS P.G. (AUTONOMOUS ) COLLEGE , SHIVAJI

NAGAR , BHOPAL , M.P. – 462016

(BARKATULLAH UNIVERSITY)