Amrapali Institute of Applied Sciences

A STUDY ON BIBAS MIS OF N.A.K.G.BANK

Nainital Almora Kshetriya Gramin Bank
Submitted To: Ms. Monika Gupta Lecturer (AIAS) Submitted By: Kamlesh Negi BBAVI A

2010

ACKNOWLEDGEMENT

My sincere gratitude to N.A.K.G. BANK for providing me with an opportunity to work with BANK and giving necessary directions on doing this project to the best of my abilities.

I am highly indebted to Mr. N.K.Negi (Bank Officer) and who has provided me with the necessary information and also for the support extended out to me in the completion of this report and his valuable suggestion and comments on bringing out this report in the best way possible.

I also thank Ms. Monika Gupta, (Lecturer, AIAS) who firstly gave an opportunity for doing a practical project and secondly, sincerely supported me with the valuable insights into the completion of this project.

I am also grateful to my parents and friends who have helped me in the successful completion of this project.

INDEX
1. INTRODUCTION TO MIS a. Background b. Risks Associated With MIS c. Assessing Vulnerability to MIS Risk d. Achieving Sound MIS e. MIS Reviews 2. MIS IN BANKING SECTOR a. Introduction b. Relevance of Data Warehousing and Data Mining for banks in India c. Need For Building MIS d. Application of Data Warehousing and Data Mining Techniques e. Benefits of MIS f. Recommendations by RBI 3. ABOUT N.A.K.G. BANK a. History and formation b. Our vision c. Our path d. Our motto e. Bank at a glance: 4. BIBAS AT N.A.K.G.BANK a. b. c. d. What is bilingual? Bilinguality software methodology Organization computing resources Software implementation methodology for BIBAS

e. BIBAS operations

f. Working with BIBAS mis g. BIBAS review 5. FINDINGS 6. RECOMMENDATIONS AND SUGGESTIONS 7. CONCLUSION 8. BIBLIOGRAPHY 9. ANNEXURE

INTRODUCTION TO MIS
Background
A management information system (MIS) is a system or process that provides the information necessary to manage an organization effectively. MIS and the information it generates are generally considered essential components of prudent and reasonable business decisions. The importance of maintaining a consistent approach to the development, use, and review of MIS systems within the institution must be an on-going concern of both bank management and OCC examiners. MIS should have a clearly defined framework of guidelines, policies or practices, standards, and procedures for the organization. These should be followed throughout the institution in the development, maintenance, and use of all MIS. MIS is viewed and used at many levels by management. It should be supportive of the institution's longer term strategic goals and objectives. To the other extreme it is also those everyday financial accounting systems that are used to ensure basic control is maintained over financial recordkeeping activities. Financial accounting systems and subsystems are just one type of institutional MIS. Financial accounting systems are an important functional element or part of the total MIS structure. However, they are more narrowly focused on the internal balancing of an institution's books to the general ledger and other financial accounting subsystems. For example, accrual adjustments, reconciling and correcting entries used to reconcile the financial systems to the general ledger are not always immediately entered into other MIS systems. Accordingly, although MIS and accounting reconcilement totals for related listings and activities should be similar, they may not necessarily balance. An institution's MIS should be designed to achieve the following goals: Enhance communication among employees.

 Deliver complex material throughout the institution. Provide an objective system for recording and aggregating information. Reduce expenses related to labour-intensive manual activities. Support the organization's strategic goals and direction. Because MIS supplies decision makers with facts, it supports and enhances the overall decision making process. MIS also enhances job performance throughout an institution. At the most senior levels, it provides the data and information to help the board and management make strategic decisions. At other levels, MIS provides the means through which the institution's activities are monitored and information is distributed to management, employees, and customers. Effective MIS should ensure the appropriate presentation formats and time frames required by operations and senior management are met. MIS can be maintained and developed by either manual or automated systems or a combination of both. It should always be sufficient to meet an institution's unique business goals and objectives. The effective deliveries of an institution's products and services are supported by the MIS. These systems should be accessible and useable at all appropriate levels of the organization. MIS is a critical component of the institution's overall risk management strategy. MIS supports management's ability to perform such reviews. MIS should be used to recognize, monitor, measure, limit, and manage risks. Risk management involves four main elements: Policies or practices. Operational processes. Staff and management. Feedback devices. Frequently, operational processes and feedback devices are intertwined and cannot easily be viewed separately. The most efficient and useable MIS should be both operational and informational. As such, management can use MIS to measure performance, manage resources, and help an institution comply with regulatory requirements. One example of this would be the managing and reporting of loans to insiders. MIS can also be used by management to provide feedback on the effectiveness of risk controls. Controls are developed to support the proper management of risk through the institution's policies or practices, operational processes, and the assignment of duties and responsibilities to staff and managers. Technology advances have increased both the availability and volume of information management and the directors have available for both planning and decision making. Correspondingly, technology also increases the potential for inaccurate reporting and flawed decision making. Because data can be extracted from many financial and transaction systems, appropriate control procedures must be set up to ensure that information is correct and relevant. In addition, since MIS often originates from multiple equipment platforms including mainframes, minicomputers, and microcomputers, controls must ensure that systems on smaller computers have processing controls that are as well defined and as effective as those commonly found on the traditionally larger mainframe systems. All institutions must set up a framework of sound fundamental principles that identify risk, establish controls, and provide for effective MIS review and monitoring systems throughout the organization. Commonly, an organization may choose to establish and express these sound principles in writing. The OCC fully endorses and supports placing these principles in writing to enhance effective communications throughout the institution. If however, management follows sound fundamental principles and governs the risk in the MIS Review

area, a written policy is not required by the OCC. If sound principles are not effectively practiced, the OCC may require management to establish written MIS policies to formally communicate risk parameters and controls in this area. Sound fundamental principles for MIS review include proper internal controls, operating procedures and safeguards, and audit coverage. These principles are explained throughout this booklet.

Risks Associated With MIS

Risk reflects the potential, the likelihood, or the expectation of events that could adversely affect earnings or capital. Management uses MIS to help in the assessment of risk within an institution. Management decisions based upon ineffective, inaccurate, or incomplete MIS may increase risk in a number of areas such as credit quality, liquidity, market/pricing, interest rate, or foreign currency. A flawed MIS causes operational risks and can adversely affect an organization's monitoring of its fiduciary, consumer, fair lending, Bank Secrecy Act, or other compliance-related activities. Since management requires information to assess and monitor performance at all levels of the organization, MIS risk can extend to all levels of the operations. Additionally, poorly programmed or non-secure systems in which data can be manipulated and/or systems requiring on-going repairs can easily disrupt routine work flow and can lead to incorrect decisions or impaired planning.

Assessing Vulnerability to MIS Risk

To function effectively as an interacting, interrelated, and interdependent feedback tool for management and staff, MIS must be "useable." The five elements of a useable MIS system are: timeliness, accuracy, consistency, completeness, and relevance. The usefulness of MIS is hindered whenever one or more of these elements are compromised. Timeliness To simplify prompt decision making, an institution's MIS should be capable of providing and distributing current information to appropriate users. Information systems should be designed to expedite reporting of information. The system should be able to quickly collect and edit data, summarize results, and be able to adjust and correct errors promptly. Accuracy A sound system of automated and manual internal controls must exist throughout all information systems processing activities. Information should receive appropriate editing, balancing, and internal control checks. A comprehensive internal and external audit program should be employed to ensure the adequacy of internal controls. Consistency To be reliable, data should be processed and compiled consistently and uniformly. Variations in how data is collected and reported can distort information and trend analysis. In addition, because data collection and reporting processes will change over time, management must establish sound procedures to allow for systems changes. These procedures should be well defined and documented, clearly communicated to appropriate employees, and should include an effective monitoring system. Completeness Decision makers need complete and pertinent information in a summarized form. Reports should be designed to eliminate clutter and voluminous detail, thereby avoiding "information overload."

Relevance Information provided to management must be relevant. Information that is inappropriate, unnecessary, or too detailed for effective decision making has no value. MIS must be appropriate to support the management level using it. The relevance and level of detail provided through MIS systems directly correlate to what is needed by the board of directors, executive management, departmental or area mid-level managers, etc. in the performance of their jobs.

Achieving Sound MIS

The development of sound MIS is the result of the development and enforcement of a culture of system ownership. An "owner" is a system user who knows current customer and constituent needs and also has budget authority to fund new projects. Building "ownership" promotes pride in institution processes and helps ensure accountability. Although MIS does not necessarily reduce expenses, the development of meaningful systems, and their proper use, will lessen the probability that erroneous decisions will be made because of inaccurate or untimely information. Erroneous decisions invariably misallocate and/or waste resources. This may result in an adverse impact on earnings and/or capital. MIS which meets the five elements of usability is a critical ingredient to an institution's short- and long-range planning efforts. To achieve sound MIS, the organization's planning process should include consideration of MIS needs at both the tactical and strategic levels. For example, at a tactical level MIS systems and report output should support the annual operating plan and budgetary processes. They should also be used in support of the long term strategic MIS and business planning initiatives. Without the development of an effective MIS, it is more difficult for management to measure and monitor the success of new initiatives and the progress of on-going projects. Two common examples of this would be the management of mergers and acquisitions or the continuing development and the introduction of new products and services. Management needs to ensure that MIS systems are developed according to a sound methodology that encompasses the following phases: Appropriate analysis of system alternatives, approval points as the system is developed or acquired, and task organization. Program development and negotiation of contracts with equipment and software vendors. Development of user instructions, training, and testing of the system. Installation and maintenance of the system. Management should also consider use of "project management techniques" to monitor progress as the MIS system is being developed. Internal controls must be woven into the processes and periodically reviewed by auditors. Management also should ensure that managers and staff receive initial and on-going training in MIS. In addition, user manuals should be available and provide the following information: A brief description of the application or system. Input instructions, including collection points and times to send updated information. Balancing and reconciliation procedures. A complete listing of output reports, including samples.

Depending on the size and complexity of its MIS system, an institution may need to use different manuals for different users such as first-level users, unit managers, and programmers.

MIS Reviews
By its very nature, management information is designed to meet the unique needs of individual institutions. As a result, MIS requirements will vary depending on the size and complexity of the operations. For example, systems suitable for community sized institutions will not necessarily be adequate for larger institutions. However, basic information needs or requirements are similar in all financial institutions regardless of size. The complexity of the operations and/or activities, together with institution size, point to the need for MIS of varying degrees of complexity to support the decision-making processes. Examiners should base MIS reviews on an evaluation of whether the system(s) provide management and directors with the information necessary to guide operations, support timely decision making, and help management monitor progress toward reaching institutional goals and objectives.

MIS IN BANKING SECTOR

Introduction
The term Management Information System (MIS) is not new to the banking sector. Since the early 80s, banks have been using this terminology to refer to the process of generating various reports and analyses at the Corporate/Head offices for their decision making for own use as well as for conveyance to authorities in charge of regulation. Often, these reports are generated through computers and can be generated at any point of time. However, the usage of the terms data warehousing and data mining are relatively new. These terms have gained significance with the growing sophistication of technology and the need for predictive analysis with What if simulations. MIS in the present context of high availability of voluminous data on electronic media at diverse locations and on diverse platforms, has become more pertinent to banks decisionmaking process, thanks to the availability of new tools of technology such as data warehousing, data mining. Data warehousing which refers to collection of data from various sources (internal and external) and placing them in a form suitable for further processing which will gain critical importance in the presence of data mining which refers to the process of extracting hidden information and generating several types of analytical reports which are usually not available in the original transaction processing systems.

Relevance of Data Warehousing and Data Mining for banks in India

1. Banking being an information intensive industry, building a Management Information System within a bank or an industry is a gigantic task. It is more so for the public sector banks which have a wide network of bank branches spread all over the country. It becomes all the more difficult due to prevalence of varying degrees of computerisation. At present, banks generate MIS reports largely from periodic paper reports/ statements submitted by the branches and regional/zonal offices. Except for a few banks which have been using technology in a big way, MIS reports are available with a substantial time lag. Reports so generated have also a high margin of error due to data entry being done at various levels and the likelihood of varying interpretations at different levels.

2. Though computerisation of bank branches has been going on at a good pace, MIS requirements have not been fully addressed to. It is on account of the fact that most of the Total Branch Computerisation (TBC) software packages are transaction processing oriented. They have been designed primarily for day-to-day operations at the branch level and day-end balancing of books. There are only a few packages used by a limited number of branches which can easily be interfaced with the computer systems at Zonal/ Head Offices and have the capability to generate MIS data. Banks have not implemented

such packages partly because of the high costs and partly because of the absence of any strategic plan to collate information at the corporate level by using the TBC packages.

Need For Building MIS

The need for building MIS at the corporate level has increased considerably during the last few years because of the following reasons:

Regulatory requirements indicated by the RBI for preparation of Off-site Monitoring Surveillance (OSMOS) Reports on a regular basis in electronic format Regulatory requirement of filing of statutory returns such as the one under Section 42 of the Reserve Bank of India Act, 1934 for working out Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) obligations in electronic format Asset Liability Management (ALM) guidelines for banks being implemented by the RBI w.e.f. April 1, 1999 with the stipulation that the banks should capture 100 percent of their business through the ALM system by April 1, 2000. Need for timely submission of Balance Sheets and Profit & Loss Accounts Focus on transaction costing and a need for relating the service charges levied on the customers to be based on cost of servicing Need for Inter-Branch Reconciliation of Accounts within a definite time frame Need to meet the stipulations made by the Central Vigilance Commission (CVC) to computerise at least 70 percent of banking business by January 1, 2001. Need to undertake risk management strategies and for this purpose build up appropriate sets of data and market intelligence reports.

Building MIS to meet the above objectives would not be possible by replicating the existing TBC package. MIS capability needs to be incorporated in the packages so that the controlling offices/corporate offices can generate the required monitoring reports without having to make another round of data entry at their end.

Application of Data Warehousing and Data Mining Techniques

In this connection, application of data warehousing and data mining techniques appears to be the appropriate solution. The implication of adopting such technology in a bank would be as under:

All transactions captured at the branch level would get consolidated at a central location. Such a central location could be called the Data Warehouse of the concerned bank. For this to happen, one of the requirements would be to establish connectivity between the branches on the one hand and the Data Warehouse platform on the other. For banks with large number of branches, it may not be desirable to consolidate the transaction details at one place only. It can be decentralised by locating the services on regional basis. The regional Data marts as developed can provide mutual back-up and could be linked to the central Data Warehousing server so that for the purpose of MIS at the corporate level, data can be accessed from all the regional Data marts. By way of data mining techniques, data available at various computer systems can be accessed and by a combination of techniques like classification, clustering,

segmentation, association rules, sequencing, decision tree (described in detail at Annexure-15), various ALM reports such as Statement of Structural Liquidity, Statement of Interest Rate Sensitivity etc. or accounting reports like Balance Sheet and Profit & Loss Account can be generated instantaneously for any desired period/date.

Benefits of MIS
Significant cost benefits, time savings, productivity gains and process re-engineering opportunities are associated with the use of data warehouse for information processing. Data can easily be accessed and analysed without time consuming manipulation and processing. Decisions can be made more quickly and with confidence that the data are both time-relevant and accurate. Integrated information can be also kept in categories that are meaningful to profitable operation. Trends can be analyzed and predicted with the availability of historical data and the data warehouse assures that everyone is using the same data at the same level of extraction, which eliminates conflicting analytical results and arguments over the source and quality of data used for analysis. In short, data warehouse enables information processing to be done in a credible, efficient manner.

Recommendations by RBI
1. The Committee recognises the need for data warehouses both at the individual bank level and at industry level. The argument that it is too early for such technology in India does not hold good for the banking industry which is primarily an industry dealing with facts and figures. For implementing various regulatory guidelines including the latest one on ALM, a robust MIS, founded on data warehousing and data mining, at individual bank level is essential. The structure, configuration and design of the data warehouse may, however, differ from bank to bank.

2. It is not necessary to wait for all bank branches to be computerised for setting up of data warehouse. Neither is it necessary for all branches to have the same TBC software package. Data warehouse can be established even across multiple computer platforms as long as the transaction details are made available to the data warehouses in standardised formats. Therefore, banks should standardise the data formats and start supplying the data on a continuous basis from the branches which have already been computerised. It is expected that the computerised branches themselves would provide the critical data for a data warehouse to go live. The Committee recommends that all banks should put in place their data warehouse strategy by January 1, 2001. The banks with a large number of computerised branches may start their pilot projects by warehousing certain categories of data (if not all the transactions) by April 1, 2001. Some illustrative application areas are :

i. ii. iii. iv.

Investment Analysis Credit Analysis Customer Base Analysis Defaulters Analysis

3. For building data bases at the individual customer level within a bank or at the industry level, it may be advisable to follow a unique identification number for all bank customers. A Task Force may be set up by IBA to explore feasible methodology for working out a unique identification system.

4. While building the industry level data warehouse, legal questions relating to confidentiality of information may arise. The Standing Committee on Legal Issues relating to Electronic Banking as recommended in Chapter 7 of the Report may examine this issue. However, for the data collected under the regulatory provisions, the Reserve Bank of India could establish a Data Warehouse on Banking and Finance. The Department of Supervision, the Department of Banking Operations & Development and the Exchange Control Department of the Reserve Bank of India have already been receiving large amount of data. The Department of Statistical Analysis & Computer Services and the Department of Economic Analysis & Policy have also been receiving various statistical returns. Data so collected do not have any legal sensitivity and can well be used for data warehousing and data mining.

5. The Indian Banks Association may initiate the process of building another Industry Level Data Warehouse, based on agreements to be signed by the participating banks on sharing of data. This data warehouse may mask the customer information, but it should be based on individual customer information so that the participating institutions can derive the benefit of business segmentation analysis and trend forecasting on various banking operations.

ABOUT N.A.K.G. BANK

HISTORY AND FORMATION 1. Establishment & objectives Nainital Almora Kshetriya Gramin Bank Sponsored by Bank of Baroda was established on 26th March, 1983. The area of operation of the Bank is Nainital, Almora, Bageshwar and Udham Singh Nagar districts. The main objective behind establishment of the Bank was to provide banking facilities in rural area and provide financial assistance particularly to small, marginal farmers, landless labourers and other weaker sections. Nainital Almora Kshetriya Gramin Bank comes under scheduled Bank included in 2nd schedule of Reserve Bank of India Act, 1934 and is authorised to do banking business defined in Section 6 in Banking Regulation Act. Like other banks customers' deposits are insured as per rules by Deposit Insurance & Credit Guarantee Corporation. 2. Branch network Bank is functioning with its 58 branches and two extension counters. District wise branch position is as under : Semi Urban 3 3 1 5 12 Total Branches 19 19 12 08 58

District Nainital Almora Bageshwar Udham Singh Nagar Total:

Rural 15 16 11 03 45

Urban 1 1

Our Area Offices are functioning at Almora and Haldwani for control and supervision of branches.

3. Share capital & reserves The Bank's authorised capital is Rs. 5 Crores and the paid up capital is Rs. 1 crore contributed by Govt. of India, Bank of Baroda and Govt. of Uttarakhand. Our Bank was selected in 1995-96 for revamping in phase II and we have received an equity support of Rs.10,12,92,800/- from Govt. of India, Bank of Baroda and Govt. of Uttarakhand in the proportion of 50:35:15 respectively. Our reserves have increased to Rs. 37.35 Crores as at the end of the year. OUR VISION The key initiatives need to be taken to achieve the objective of maximizing growth and profitability would be as under:1) Introspect ourselves and position our style of working for customers convenience to enhance customers satisfaction. 2) To set high standards of ethical values, transparency and disciplined approach to achieve excellence. 3) To enlarge customers base by consistent growth, resource mobilization and cross selling of bank products. 4) To initiate steps to increase non-interest income. 5) To enhance image of the bank as customer friendly organization. OUR PATH 1) In order to build upon our strength, it is necessary to first know our strengths. And our strength lies in our customers, our products, our processes and our people. We have to delve deeper into the task of knowing our Bank, our markets and environment. 2) Greater awareness about what we do, why we do it and 3) How efficiently we do it, will yield better results.

4) Apart from mobilizing Deposit especially that of CASA deposit, our main emphasis will be on: 1. Credit growth 2. NPA Management 3. Non-Interest Income 4. House keeping 5. Customer Service/Orientation 6. Technological up-gradation 7. Staff development etc. OUR MOTTO Service to customers with technology & human touch. BANK AT A GLANCE: (Amount in Crore) March 04 59 220 4 206.81 11.96 3.57 131.47 82.80 (-)6.18 59 218 4 239.03 15.58 8.15 148.28 100.85 21.80 March 05 58 216 4 290.29 21.44 3.04 173.04 143.45 42.24 March 06 58 212 4 354.73 22.20 27.97 197.83 182.90 27.50 March 07 58 240 4 413.70 16.62 25.80 199.80 232.21 26.96 March 08 58 234 4 466.85 12.85 22.66 234.63 258.22 11.20 March 09

S.N. 1 2 3 4 5 6 7 8 9

Parameter No of Branch Total Staff District covered Deposit-Amount % Growth Borrowings -Amount Investment-Amount Advances-Amount % Growth

10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27

Disbursement-Amount % Growth Total Income Total Expenditure Profit (After Tax) Reserves & Surplus Cost of Deposits-% Transaction Cost Cost of Fund-% Return on Advances Return on Investment Return on Fund Financial Margin C.D.Ratio Recovery-% (June) Gross NPA-% Net NPA-% Per Branch BusinessAmount

41.84

68.54

96.98 41.48 25.74 20.74 5.00 21.26 4.14 2.58 3.70 9.00 8.24 7.87 4.16 49.42 80.19 7.74 1.78 7.48

114.11 17.67 31.04 25.07 4.15 25.41 4.06 2.74 3.67 9.73 7.55 7.52 4.51 51.56 82.45 3.14 0.89 9.27

142.47 24.85 39.95 28.41 5.89 31.30 4.77 2.05 3.81 9.97 9.16 8.41 4.60 56.12 70.36 4.97 1.93 11.15

127.68 (-)10.38 45.20 35.41 6.04 37.35 5.40 2.05 4.71 10.60 8.25 8.33 3.62 55.31 76.99 4.53 1.44 12.50

(-)16.80 63.81 21.83 17.68 4.16 23.10 5.54 2.68 4.83 11.81 9.40 9.40 4.57 40.04 78.83 15.35 10.78 4.91 20.99 16.81 4.18 16.26 4.58 2.63 3.94 10.44 7.91 7.95 4.00 42.16 82.61 7.22 3.69 5.86

28

Per Employee Business-Amt.

1.32

1.56

2.01

2.54

2.72

3.10

29 30

NO of SHGs Linked No. of Farmers Clubs

182 07

340 24

409 31

463 64

678 133

732 162

BIBAS AT N.A.K.G.BANK
I. WHAT IS BILINGUAL?

The official Memorandum No. 12015/ 12/84/-OL (TC) dated 31st August, 1987 on Official Languages Act, 1963 issued by Department of Official languages (Technical Cell), Ministry of Home Affairs, Government of India which states that Computers etc. would be considered bilingual only when:1. There are facilities for data entry in Hindi along with English. 2. Any employee can use it in either English or Hindi. For this, it is necessary to have a facility in the machine so that the employee can display either English or Hindi on the monitor at will. 3. The output of the system (report, letter etc.) could be produced by the person working on the machine either in Hindi or English at will. It is crystal clear from the guidelines that the data entry should be in Hindi along with English while output could be in either in Hindi or English.

II.

BILINGUALITY SOFTWARE METHODOLOGY

The world over working is done in two languages i.e. the local language of the area and the global language (local concept, global impact). Thus, the concept of bilingual, multi lingual software methodology in which work is undertaken as follows: display of screens in two languages data base is maintained in two languages data selection / drop downs is displayed in two languages display of buttons in two languages display of messages in two languages display of menu items in two languages

 data output in two languages

III.

ORGANIZATION COMPUTING RESOURCES

Software Resources:Following softwares are used for the functioning of our information system and organization;

Application Software:Following application softwares are used in our organization and functioning of our information system; Microsoft Office 2003 Adobe Reader

System Software:Following application softwares are used in our organization and functioning of our information system; Operating System (Windows 2000 Professional) for PCs. Windows 2000 server operating system for server.

RDBMS
Following RDBMS is used for database management: SQL Server 2000 RDBMS

Hardware Resources:Following hardware resources are required for the functionality of IS and organization: Personal computers with 40 GB capacity for data storage Canon Document Scanners HP Printers Networking cards for LAN connectivity Currency counter Coin counters HP Digital Scanners

 IBM Mainframe server with 80 GB capacity for data storage Passbook Printers Dot Matrix Printer

IV.

SOFTWARE IMPLEMENTATION METHODOLOGY BIBAS

FOR

Sr. No. Check Points for Site Readiness Requirements

1. Adequate power to run hardware equipment such as computers, printers, scanners, etc. Recommended Power Supply is as under: Server=450 watts Desktop=350 watts Dot matrix printer=100 watts Passbook Printer=250 watts For each computer, minimum 2 electric points are needed. Area should preferably have airconditioner. If not, the area should be dust free with a ceiling fan/table fan. Area should be dust free. Suggested configuration of UPS should be 2KVA for a setup 1 server, 3 desktops, 1 dot matrix printer and 1 passbook printer. Battery backup of 4 hours is recommended. Engineer/Branch to obtain support.

2.

Adequate electrical points

3.

Adequate space for server

4. 5.

Adequate space for desktops Availability of UPS

6.

Availability of telephone connection at server place Availability of hardware equipment as per the standard specification of Nelito

7.

Hardware equipment includes server, desktops, dot matrix printer, passbook printer & scanner.

8.

Availability of computer stationary and Branch should keep computer stationary preferably DAT tapes for backup of data stock, well in advance. Availability of Operating System, System Software, and RDBMS in the server and desktops Server should have been loaded with Windows 2000 server Operating System and SQL server 2000 RDBMS. Desktops should have Windows 2000 professional. On the day of inspection, if any other software is found, customer should be advised to get in touch with the hardware vendor to load the software referred above.

9.

10.

Availability of LAN/Cross cable for peer to peer connectivity Identification of System officer at the branch

Desktops should have connectivity to the server. The system officer should be involved in all the activities related to site readiness, implementation & branch online activities. Branch to make available account forms and ledgers and ensure smooth and continuous master creation works. Branch to ensure that all books of accounts are tallied.

11.

12.

Availability of completed account forms and ledgers for Master Creation

13.

Availability of balanced/tallied books of accounts

V.

BIBAS OPERATIONS

There are a number of operations which can be carried on BIBAS MIS. These operations are developed according to the need of the bank and employees so that it is easy to use and provides accuracy and reliability in data processing. A list of its operations is as follows:

Customer
Customer Group Individuals Corporates Banks

Accounts
Transaction Accounts Fixed Accounts Flexi Fixed Accounts Installment Accounts Miscellaneous and MIS details Audit Details Print Passbook

Transactions
Single Currency Reconciliation View Transactions Post Transactions Verify Transactions

Services
Cheques Collaterals Standing Orders Sweep Order

 Remittance Limits WAE Limits Lien Notings Signature

Stock Maintenance Guarantor Utility Payments Bank Guarantee

Clearing
Zone Details Inward Clearing Outward Clearing Offline

Cash Module
Token Scroll Token Pay Receipt Scroll View Cash Transfer Cash Exchange Auto Transfer Token Scroll View Cashier Transactions Cashier Balances Cash Exchange

Inquiry
Drill Down Account Information Office A/c Inquiry Installment A/c Inquiry Fixed A/c Inquiry Guarantor Inquiry Transaction Inquiry Transaction Exceptions View Account Statistics PPF Report Schedule Inquiry Account Analysis General Transaction Inquiry System Transaction Inquiry

Utilities
Charges Verify Events Change Password Transaction Upload Change Customer Name HO Interest Report HO Extracts TDS Non-Performing Assets Interest Preview Interest Adjustment HR / Payroll Employee Signature OMNIBOB File Generation DD Caution File Upload Balance Certificate

VI.

WORKING WITH BIBAS MIS

1. Creating a Branch Account Creating a branch account means to create a user ID and password for a particular branch so that the employees can use the software for further processing and to configure the software according to the needs of the branch. Configuration can only be done to assign authority levels for different employee accounts in the BIBAS MIS.

2. BIBAS Configuration

BIBAS can be configured after successful login. Configuration includes manage bank, designers, system administration, manage users, and utilities. Some major functions are: Managing bank which includes branch details, currency setup, branch setup, etc. and Manage Users which includes creating user profile, assigning authority levels, etc.

3. Operations Login

The employees can use their user ID and password created in BIBAS Configuration to carry on the operations assigned according their designation.

4. User Profile

User Profile includes creation of user ID of employees with their job description, user group, transaction limits, and defining authority levels. Authority levels can be changed according to the need of work done. 5. Creating Customer Account

All the necessary information related to the customer is entered in the customer create menu and the customer account is created thereon. It also stores customer photo and signature which can be verified at the time of a transaction.

6. Create Transaction Account

Once the customer ID is created then a transaction account is created for the customer for various transactions.

7. Create Single Currency Transaction

Every transaction is recorded manually in the MIS with the transaction type and other details which is then stored in the database.

8. View Transactions

Transactions for a particular day or month or year can be viewed for a single customer or all customers of the bank.

9. Verify Transactions

Before posting, the transactions on a particular day are verified to prevent any omission. The cancelled payments can be cleared and all the transactions can be verified at a single click.

10. Post Transactions

Once the transactions are verified, the transactions are actually posted and recorded in the database.

11. Account Service Information

BIBAS MIS also provides account service information through which the employees if the bank can easily get the details of a customer and information related to account and other information.

12. Inquiry

The employees can inquire for account and transaction for any date or period and other information.

13. Start/End of Day

The day of the branch starts after the backup of previous days transactions and processing for beginning the new days transactions. The start and end of day is facilitated by BIBAS which provides automation of such processes.

VII. BIBAS REVIEW

The review of BIBAS MIS on the basis of employees survey is as follows:

The review of BIBAS MIS suggests that it has a good processing speed for speeding up transaction processing for better services to customers. The performance has been good since its installation in the branch without facing any difficulties. It is very accurate in providing information and processing the data. The software is bundled with many useful features which almost satisfies all the need of the employees and the organization. The software is reliable but it can be affected by the nature of employee using it. Reliability of software varies only in the aspect of human use. The software is easy to use and has a user friendly menu with two languages i.e. Hindi and English. So, overall the BABAS MIS is good package of bundle of features and utilities which help the organization to increase their net worth.

FINDINGS
Following findings were observed while working on BIBAS MIS at N.A.K.G.Bank: The MIS has a user friendly menu with two language display in Hindi and English. The speed of processing is very fast which ensures faster processing and satisfying the customers without making them stand in a cue for long time. The MIS enables the employees to verify the signature and photos of account holder with ease. The MIS is accurate in recording and providing information of their customers. The data is recorded separately in each computer on which the respective transaction is recorded and at the end of the day all the data is gathered at the main server by BIBAS through LAN for verifying and posting transactions and closing the day. The branch cannot connect to other branches through this software to share customer information. This has to be by recording/writing of data in pen drives or CDs. The backup of data is stored in the main server and also stored in pen drives to prevent data loss. The continuous performance of MIS is ensured by a UPS of 4kv comprising of 32 batteries which can provide backup up to 10 hours continuously. All the different function of MIS can also be used by a single employee just by creating profiles or changing the authority levels assigned to him. The systems are not supported by any Antivirus Software which can result to system failure or data loss.

RECOMMENDATIONS AND SUGGESTIONS

The bank is using the MIS very efficiently and increasing its profitability, but still there are many things that should be improved. With the increase in the technology, the bank should keep its MIS up-to-date for providing best services to their customers and attracting more customers and increasing its productivity. The security of these systems from virus attack should be made by installing antivirus softwares. Connectivity should be enhanced to facilitate exchange of information among different branches. Establish a formal mechanism for review and reiteration of the MIS. Develop a system for tabulating and forecasting utilization of installed data processing (DP) equipment. Fix the organizational responsibility for maintaining MIS. Rotate the assignment of technical personnel to the staff. Budget for research and development should be maintained for taking benefits of upcoming latest technologies.

CONCLUSION
MIS is the lifeblood of any organization. Both public and private sectors must be committed to seeking formal or organized information before taking decisions. Management problems will be provided with specific answers through computer simulations and gaming techniques. Todays managers must be careful, as they can become inundated with only marginally relevant facts rather than be presented with concrete and absolutely useful information. This situation can be avoided where a virile and functional MIS unit is put in place. At N.A.K.G.B.BANK the BIBAS MIS is very effective and has increased the efficiency and effectiveness of the working of bank. The employees are now much more relaxed and accurate in recording and posting transactions. The study of MIS is not about the use of computers, it is about the provision and use of information relevant to the user. Undoubtedly, there is an important and growing role for computers and IT in MIS but the technology must be used with discretion. Computers are good at rapid and accurate calculations, manipulation, storage and retrieval but less good at unexpected demands or qualitative analysis or where genuine judgement is required. Computers, certainly, can be used to the best advantage for processing information.

BIBLIOGRAPHY
Primary Sources: Survey through questionnaire of 25 employees and self-assessment of BIBAS MIS. Secondary Sources: Includes review of data from various website like http://www.rbi.org.in/Scripts/BS_ViewPublicationReport.aspx http://www.nakgb.com/ http://www.occ.treas.gov/handbook/mis.pdf http://www.docstoc.com/docs/412945/the-importance-of-MIS

ANNEXURE
Questionnaire: Please rate the BABAS MIS on the basis of the following attributes out of 10: ATTRIBUTES Process Speed Performance Accuracy Features Reliability Ease of Use RATINGS (out of 10)