PART 1. BUSINESS STRUCTURE OF BANKS IN INDIA

We all are aware about the Bank. In easy words banking is nothing but the institution which accept the Deposit from the public paying on interest on it and the same lends on the interest to the public who is having need of money. Bank accept the deposit from the public on various scheme and pays the good interest on it. Public having good faith on Banks For depositing the hard earn money. By depositing the money in the Banks they receive the good return or interest and they get the surety of safety of their fund/money which they have deposited in their bank account As well.

Let’s know some facts about BUSINESS STRUCTURE OF BANK:

Broadly Business structure of the bank divided into Two parts.

1) Operations/Administration Department.

2) Lending/Credit Department.

Operation/Administration Department:

Operation department of the bank plays very crucial role in the robust growth of the bank. Operation department of the bank is highly customer contact department. To provide good customer service to existing and new customer is responsibility of the operation department. To convert the un-satisfy customer into delightful customer is also responsibility of the operation department of the bank. Good and fruitful Services is the key mantra of the operation department of the bank. Now a days competition is very high and every bank want to grab the new business and new untapped customer. To get the new customer from the available market bank introduces various schemes and to implement the newly introduced scheme is the responsibility of the operation department of the bank. The following work comes under the operation department:

To open new Saving/RD/Fix/PPF/LOCKER/Government scheme deposit account.

To implement the E-KYC Process at the branch level.

To provide the information regarding the product.

To settle the Deceased account.

To provide very smooth and delightful customer service.

To maintain the decorum at branch.

To maintain the co-ordination between all staff working at branch.

To provide locker service at the branch.

To provide fast service related to deposit and payment.

To issue new ATM cards to new customer as well as existing customer.

To solve the issues/ complaints regarding ATM card.

In the meantime, implementation of the newly introduced schemes by the Central government is very big responsibility of Operation department of the bank. Central government introduced various scheme for the public and the implementation of the scheme successfully is the key responsibility of the operation department of the bank.

Operation department play very important role to identify the new business leads and convert the identified leads into the banks customer. Good customer service is the key of attracting to new customer.

2)Lending/Credit Department:

Lending to good people/public and earns the interest from them is business of the bank. Bank receives the deposit from the customer/public and pays the very handsome interest on their deposit. To pay the interest bank must earn the income, so that bank lend the money to the needy customer who is having very good track record of re-paying the loan.

Lending department receives the various loan application from the customers.to identify the good and profitable application is the key and important activity of the lending department of the bank. operation department screen the loan application of various scheme received from various customer. From screening to disbursement of the loan to the Borrower is the responsibility of lending department of the bank.

The following works comes under the Lending/Credit Department:

To receive the loan application from the customer.

To provide all necessary information on all loan scheme of the bank.

To the customer verification of the borrower.

To the KYC of the borrower.

To identify the need of the borrower.

To conduct the pre-inspection:

                           To verify the phone number.

                           To verify the phone number of employer.

                           To verify the residential house or rented property.

                           To verify the employer office address.

                           To verify the movable asset.

                            To verify the family members of the borrower.

and post-inspection of the borrower:

                           To verify the Property which is created from money borrowed by the borrower. In this part of inspection bank verifies, whether the property is created as per the plan and information provided by the customer/borrower while applying the loan or not. Whether customer has mis-utilised the borrowed fund or not is the crucial activity of the post inspection process of the bank. Many time borrower diversified the fund which is borrowed from the bank and to identify the diversification of the fund is the most important work of the lending and credit department.

To process the loan application in the system.

To sanction the application as early as possible.

To disburse the loan to the borrower’s account.

To take the follow-up of the borrower

To do the call regarding installment due.

To do the verification on some intervals.