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Abstract
Banks worldwide use data warehousing solutions for performance measurement, profitability analysis, for risk management, historical analysis, for managing compliance requirements, executive dashboards, regulatory reporting and customer relationship management. Deployment of business intelligence (BI/MIS) capability is the next logical step for banks in India, especially those in the public sector, in their strategic use of information technology (IT). Most of these banks have either already implemented or are in the process of implementing a bank-wide core banking system for transaction processing and have also implemented multi-channel service delivery capability [1]. Because the current systems did not have business intelligence capabilities required to support difficult managerial decisions. For example, executives, managers and employees of the bank did not even have an integrated view of the data, as each of them was using a different set of applications to source the data. And also that long term strategic plans, achievement of objectives and success ultimately depended on how well the bank employees performed their primary mission of delivering high-quality services to their customers through efficient business processes. In this paper we have discussed about the need of MIS/BI solution for PSB in India and Case analysis.
Keywords: India, Business Intelligence, Bank, Management, Employee
Brief History on Public Sector Banks in India
The Indian Banking industry mainly comprises of the Public sector banks (PSBs) (in which Government holds majority stake and developed even prior to its political independence in 1947), Private Banking Sector (PBS), Multinational Banks and cooperative banks. There was a significant presence of both foreign and domestic banks and well developed stock market. The system expanded rapidly after nationalization of major commercial banks in late 1969 and now ranks in the top quarter among developing countries [2]. Prior to this the Indian banking sector was not seriously drawn toward mechanization of operations, particularly with regard to customer related activities. Instead, the banks focused on employment generation and supported growth in transaction volume by adding more employees instead of technology.
The following steps are taken by the government of India to regulate banking institutions in the country.
1949 : Enactment of Banking Regulation Act.
1955 : Nationalisation of State Bank of India.
1959 : Nationalisation of SBI subsidiaries.
1961 : Insurance cover extended to deposits.
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