MANAGEMENT INFORMATION SYSTEM:

MIS is
short
for management information system
or management
information services.
Management information system, or MIS, broadly refers to a computer-based
system that provides managers with the tools to organize, evaluate and
efficiently manage departments within an organization. In order to provide
past, present and prediction information, an MIS can include software that
helps in decision making, data resources such as databases, the hardware
resources of a system, decision support systems, people management and
project management applications, and any computerized processes that
enable the department to run efficiently.

MIS AND BANKING:

The term 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
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 decision-making process, thanks to the availability
of new tools of technology such as data warehousing, data mining
Management Information System would thus be the end product of both the
processes - data warehousing and data mining.
B a n k i n g b e i n g a n i n f o rm a t i o n i n t e n s i v e i n d u s t r y , b u i l d i n g a
M a n a g e m e n t 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 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 Though computerization 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
Computerization (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.

BANKING IN INDIA:
The Banking sector in India has always been one of the most preferred
avenues of employment. In the current decade, this has emerged as a
resurgent sector in the Indian economy. As per the McKinsey report India
Banking 2010, the banking sector index has grown at a compounded annual
rate of over 51 per cent since the year 2001, as compared to a 27 per cent
growth in the market index during the same period. It is projected that the
sector has the potential to account for over 7.7 per cent of GDP with over
Rs.7,500 billion in market cap, and to provide over 1.5 million jobs.
Today, banks have diversified their activities and are getting into new
products and services that include opportunities in credit cards, consumer
finance, wealth management, life and general insurance, investment
banking, mutual funds, pension fund regulation, stock broking services,
custodian services, private equity, etc. Further, most of the leading Indian
banks are going global, setting up offices in foreign countries, by themselves
or through their subsidiaries.
Banking in India in the modern sense originated in the last decades of the
18th century . The first banks were Bank of Hindustan (1770-1829) and The
General Bank of India, established 1786 and since defunct.
The largest bank, and the oldest still in existence, is the State Bank of India,
which originated in the Bank of Calcutta in June 1806, which almost
immediately became the Bank of Bengal. This was one of the three
presidency banks, the other two being the Bank of Bombay and the Bank of
Madras, all three of which were established under charters from the British
East India Company. The three banks 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 acted as quasi-central
banks, as did their successors, until the Reserve Bank of India was
established in 1935.
In 1969 the Indian government nationalised all the major banks that it did
not already own and these have remained under government ownership.
They are run under a structure know as 'profit-making public sector
undertaking' (PSU) and are allowed to compete and operate as commercial
banks. The Indian banking sector is made up of four types of banks, as well

as the PSUs and the state banks , they have been joined since the 1990s by
new private commercial banks and a number of foreign banks.
Banking in India was generally fairly mature in terms of supply, product
range and reach-even though reach in rural India and to the poor still
remains a challenge. The government has developed initiatives to address
this through the State Bank of India expanding its branch network and
through the National Bank for Agriculture and Rural Development with things
like microfinance.
Indian Banking Industry currently employees 1,175,149 employees and has a
total of 109,811 branches in India and 171 branches abroad and manages an
aggregate deposit of 67504.54 billion (US$1.1 trillion or 860 billion)
and bank credit of 52604.59 billion (US$840 billion or 670 billion). The net
profit of the banks operating in India was 1027.51 billion (US$16 billion or
13 billion) against a turnover of 9148.59 billion (US$150 billion or
120 billion) for the fiscal year 2012-13.
Relevance of Data Warehousing and Data Mining for banks in IndiaBanking 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.
Though computerization 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 Computerization (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 MIS in banking:

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 Offsite 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 April1, 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 computerize at least 70percent 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.

Benefits of MIS:

Significant cost benefits, time savings, productivity gains and process

re-engineering opportunities are associated with the use of data ware
house for information processing.
Data can easily be accessed and analyzed 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.

Application of MIS in Banking:

A bank acts as a place, where the financial services are offered, which may
include provision for the retail banking, investment banking, personnel
banking etc.
The factors which the customers consider before choosing a particular bank
can be summarized as follows
a. The ease of doing the business.
b. The quality of the personnel and the service.
c. The range of the financial services.
The following points should necessarily be addressed during the designing of
an MIS for a banka. Customer database The factors which greatly influence the service expectations and the
perceptions can be summarized as follows
i. Customer
ii. Operator
iii. Range of the service which is being or is to be provided
iv. Class of the customers
v. Working hours
b. Service to the account holdersThe Management Information Systems must give the following reports to the
management:
i. The non moving account.
ii. The account with the balance more than say Rs. 50,000/iii. The account going down below the minimum balance.
iv. The routine payments not made.
v. The routine credits not arrived.
vi. The defaults on loan repayment.
vii. The delays on crediting cheques amounts.
viii. A sudden rise and fall in the account movement.
c.
Service for business promotionsThe Management Information Systems should lay a great stress on the
collection of the data from the various sources, in order to analyze and
conclude the future business strategy.
With the help of such information, banker is able to move out to talk to the
customer and as a result of this; he is also able to get some type of business
for the bank.