Lakshmi Vilas Bank Limited LOGO

Second Semester

MBA Assignment No-1

Sub: 208SC:BANKING AND INSURANCE

Submitted By;

V.MANJUNATHA

MBA99650

Submitted To;

Prof: VEERANNA

Date of Submission

13-04-2010

BAPUJI

B-Schools

Bapuji Academy of Management & Research

Affiliated to Davangere and approved by AICTE. New Delhi)

Lake View Campus, S.S Layout, Davangere -577004, Karnataka, India

Phone: 08192-220501/221625 Fax: 08192-220987

Brief History and background

   

The Lakshmi Vilas Bank Limited (LVB) was founded eight decades ago ( in 1926) by seven people of Karur under the leadership of Shri V.S.N. Ramalinga Chettiar, mainly to cater to the financial needs of varied customer segments. The bank was incorporated on November 03, 1926 under the Indian Companies Act, 1913 and obtained the certificate to commence business on November 10, 1926, The Bank obtained its license from RBI in June 1958 and in August 1958 it became a Scheduled Commercial Bank.

During 1961-65 LVB took over nine Banks and raised its branch network considerably. To meet the emerging challenges in the competitive business world, the bank started expanding its boundaries beyond Tamil Nadu from 1974 by opening branches in the neighboring states of Andhra Pradesh, Karnataka, Kerala, Maharashtra, Madhya Pradesh, Gujarat, West Bengal, Uttar Pradesh, Delhi and Pondicherry. Mechanization was introduced in the Head office of the Bank as early as 1977. At present, with a network of 270 branches,1 satellite branch and 7 extension counters, spread over 15 states and the union territory of Pondicherry, the Bank's focus is on customer delight, by maintaining high standards of customer service and amidst all these new challenges, the bank is progressing admirably. LVB has a strong and wide base in the state of Tamil Nadu, one of the progressive states in the country, which is politically stable and has a vibrant industrial environment. LVB has been focusing on retail banking, corporate banking and banc assurance.

The Bank's business crossed Rs. 12,606 Crores as on March 31, 2009. The Bank earned a Net profit of Rs. 50.30 Crores. The Net owned Funds of the Bank reaches Rs. 453.70 Crores. With a fairly good quality of loan assets the Net NPA of the bank was pegged at 1.24 % as on March 31, 2009.

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Company History - Lakshmi Vilas BankYEAR EVENTS 1926 - The Company was Incorporated at Karur, South India. The main object of the company is The Bank transacts banking business of every description. 1931 - 2,900 Rights shares issued at par. 1947 - 10,000 Right shares issued (prem. Rs.5 per share; prop. 1:1). 1953 - 5,000 Rights shares issued (prem. Rs.5 per share; prop. 1:4). 1957 - 12,500 Bonus shares issued in prop. 1:2. 1958 - The Bank was licensed under the Banking Companies Act and it became a Scheduled Bank the same year. 1960 - 12,500 rights shares issued (prem. Rs.10 per share; prop. 1:3) 1961 - In October, the Karur Mercantile Bank, Ltd. Karur, was amalgamated with the Bank, as ordered by the Central Government. The Bank took over particular assets and liabilities of Kannivadi Bank Pvt. Ltd., in November, for the Trichinopoly Vysya Bank, Ltd., Tiruchirapalli, in August 1963 and of Tirirukkattupally Bank, Ltd., Tanjore in December, 1963.

- 25,000 rights shares issued (prem. Rs.10 per share; prop. 1:2). 1962 - 1,191 shares issued to members of Karur Mercantile Bank, Ltd. on its merger. 1964 - In 1964, Salem Gugai Sree Krishna Bank, Ltd., Salem, was amalgamated with the Bank. Negotiations were being carried on with some other banking concerns for amalgamation. - 24 shares issued. 1965 - The Bank took over the particular assets and liabilities of the Shri Nadiambal Bank (P) Ltd., in January of the Kattuputtur Bank (P) Ltd., in March of the Salem National Bank in August and of the Salem Sree Ramaswamy Bank, Ltd., in September. 1971 - 37 shares issued. 1974 - 1,52,504 shares issued (prem. Re.1 per share). 1982 - 1,14,388 right equity shares issued in prop. 1:2. 1986 - 3,43,164 rights equity shares issued at par in prop. 1:1. 1988 - 6,00,000 No. of equity shares issued at par to public in December. 1989 - 6,43,164 right equity shares issued in prop. 1:2. 1993 - The Company issued 9,64,746 No. of equity shares of Rs.10 each for cash at a prem. of Rs.30 per share on Rights basis in the prop. 1:2. Allotment of 6,225 shares were kept in abeyance.

- 9,64,746 rights shares issued (prem. Rs.30 per share) in prop. 1:2. 1997 -Mr K. Raghunath Shenoy has become the chief executive officer and Chairman of Lakshmi Vilas Bank. He was executive director of the bank till recently. 1998 -Developed a credit product Gem Credit specifically for the artificial gem processing industry. 1999 - launched a money-back deposit scheme to suit the needs of investors who do not mind a longer maturity period but want a larger pay-out. 2000 - introduced a basket of products namely Lakshmi Agribike, Lakshmi Consumer Credit and Lakshmi Rental Loan 2001 -Reduced its prime lending rate (PLR) by one per cent to 13 per cent per annum from 14 per cent effective April 1, 2001 -Board Announces that it has allocated an amount of Rs 25 crore towards financing rice mills in Andhra Pradesh for the current fiscal year. -Board Announces a distribution tie-up called Bancassurance with Lakshmi Vilas Bank to develop a nationwide network which also has a strong regional focus. -Signed a letter of intent with CGU Life Insurance to offer agency services to the latter -Board announces the launch of its education loan scheme - Vidya

Lakshmi Loan -Lakshmi Vilas Bank slashes deposit rates -Forges an alliance with ICRA for putting in place a credit risk assessment system 2002 -Mr.M P Shyam and Mr. V N Krishnamurthy have been appointed as Additional Directors. And Mr. Athi R. Venkatraman and Mr. T Srinivasulu have resigned as Directors of the company. -Board entered into an MOU with Dabur CGU Life Insurance Company (P) Ltd on May 28, 2002 to sell insurance products under the Brand name 'AVIVA'. 2003 -LVB slashed interest rate for deposits by 0.25 % for periods above 271 and 364 days maturity slab. -LVB forges alliance with ICICI Infotech for core banking solution -Lakshmi Vilas Bank mobilises Rs 50 cr through tier-II bonds issue -Entered into Corporate Agency Arrangement with M/s Royal Sundaram Alliance Insurance Co. Ltd. for distributing their General Insurance Products. -Unveils Aviva Life Insurance products at Visakahapatnam in Andhra Pradesh -Board Decided to set up three strategic business units (SBUs) to cash in on the increasing opportunities in the large and mid-corporates, and retail and personal segments. -Lakshmi Vilas Bank Ltd has acquired 807,000 shares amounting to 12.32% of the total paid up capital of Blue Coast Hotels and Resorts Ltd. (Formerly Morepen Hotels Ltd). -Mr Abhishek Dalmia of the New Delhi-based Renaissance Group has

picked up a 2-per cent stake each in Lakshmi Vilas Bank This will translate into around 2.3 lakh shares of Lakshmi Vilas Bank. 2004 -The Lakshmi Vilas Bank has entered into a tie up with the Wall Street Exchange Centre LLC, Dubai belonging to the House of Patels for remittences of NRIs through rupee drawing arrangement (RDA) 2007 - Lakshmi Vilas Bank Ltd has appointed Shri.R.Mohan as Additional Director. 2009 - Lakshmi Vilas Bank has entered into an alliance with PayMate for mobile payment solution, which is being made available to its customers across 250 branches. 2010 -- Lakshmi Vilas Bank Ltd has informed that the Board of Directors of the Bank at the meeting held on January 23,2010 has Co-opted Shri.K.S.R.Anjaneyulu as an additional Director and also appointed him, as Managing Director & CEO of the Bank.

Source : Religare Technova

LAKSHMI VILAS BANK CEO:

 

 Dr. S.Narayan Chairman

Date of Birth : 20.06.1943 Qualification : M.Sc., MBA, M.Phil., PhD.

Entered Indian Administrative Service in 1965. He was Economic Adviser to the Prime Minister, during 2003-2004. Prior to this assignment, between 2000 and 2003, was in Government of India as Finance & Economic

Affairs Secretary and Secretary in the Department of Revenue, in the Ministry of Finance.

 

 

Shri. K.S.R.AnjaneyuluManaging Director

Date of Birth : 02.10.1954 Qualification : M.Com., CAIIB, EGMP (IIM,Bangalore)

Senior Banking professional with 33 years of rich experience in a leading commercial bank with proven track record.

 

Shri. K.Balaji Director

Date of Birth : 21.04.1974

He is a partner in established textile export firm based at Karur, He has extensively travelled abroad and participated in several textiles fairs in Japan, European and Scandinavian Countries. .

Shri. N. Saiprasad. Director

Date of Birth : 26.03.1964 Qualification: M.sc., M.B.A

He hails from a renowned Business family. He has professional exposure in Marketing and decades of experience & exposure in textile business & Exports. He hails from the promoters' family and has widely traveled in India and abroad.

Shri. K. Ravindrakumar. Director

Date of Birth : 15.08.1958 Qualification: M.Com

He has been in Jewellery business for decades. He has shown keen interest in social welfare activities and has widely traveled in India & abroad.

Shri.Kusuma R Muniraju Director

Date of Birth:20.06.1949 Qualification:B.Sc., L.L.B.,DCT., areas of legal issues of the reality sector.He is an advocate with 37 years of standing and specialised in the

Shri.D.L.N.Rao Director

Date of Birth:03.03.1949 Qualification:B.Sc., L.L.B.,PG Diploma in Social Science

He is a Senior advocate with 37years of standing and practicing Civil Law, Constituitional Law, Mining Law and Taxation in the High Court of Karnataka.

Shri.B.K.Manjunath Director

Date of Birth:27.03.1960 Qualification:B.Com.,FCA.,

He is a practicing Chartered Accountant with 21years of standing and specialized in the areas of Audit, Accountancy, Taxation and Finance.

Shri.K.R.PradeepDirector

Date of Birth:08.09.1960 Qualification:B.B.M.,FCA.,

He is a practicing Chartered Accountant with 25 years of standing and specialized in the areas of Direct Taxes, consultant, advisor to various group of Industries and Multinational Companies in India. 

Shri.S.G.PrabhakharanDirector

Date of Birth:15.05.1955 Qualification:B.Com.,B.L.,A.C.S

He is a Corporate Lawyer and a Senior Partner in the law firm M/S.Rangarajan and Prabhakharan, a leading law firm in South India. He was  instrumental in setting up the first Private Sector Mutual Fund in collaboration with Pioneer Mutual Fund, Boston, USA in 1993 and was a Director of Kothari Pioneer Asset Management Company.Director of the Bank from 1998 to 2006.Realtor having had sterling practice of Law from 1978 to 1994.Shri.S.DattathreyanDirector

Date of Birth:11.02.1962 Qualification:B.E.

He is a Mechanical Engineer. He has 25 years experience in FMCG Business and he has shown keen interest in social activities.

 

Vision

To be a sound and dynamic banking entity providing financial services of excellence with Pan India presence."

MISSION

“To develop a range of quality financial services and products to create value for customers, shareholders and the society; to motivate people to achieve excellence in performance leading to sustained profitable growth and build a vibrant organization.”

Banking & services

Current AccountNo FRILLS' SB A/C Fixed DepositsLoansInternational BankingNRI BankingNet BankingSMS Banking

::Shop online::Bill Payment::VISA Debit

Card::VISA Bill Pay::SMS alerts::NEFT::RTGS::Pay Loan

Installment::Book Movie

Tickets::Western Money

Transfer

  

 INTERNET BANKING  Internet Banking (IB) allows customers to conduct financial transactions on a secure website operated by their retail or corporate services. Our bank has launched Internet Banking at Chennai, on August 09, 2008. This is yet another milestone activity of the bank, after achieving the status of 100% Core Banking System. This is a cost effective delivery channel to all customers of the bank. The facility can be availed by any individual customer of the bank, having an operative account with our branches. (An Individual who is a customer can operate the account individually)

The customers who are willing to avail LVBiNet facility can approach any branch of LVB to get the IB facility application form or directly download the application form from our website www.lvbank.com which is readily available.

To start with, we are offering the following services under Internet banking.  Features 

Funds Transfer between Accounts in LVB. One view for all the accounts of a customer. Account Summary and Account details. View, Print and Download Statement of Accounts.

 Query on  

Status of Cheque / Cheque book Details of Term Deposits.

Details of Loans. Standing Instructions. Interest Rates.

 The following are the upcoming features of LVBiNet  

Cheque Book request. Stop Payment request. Statement of Accounts request. Term Deposit opening. DD/BC Issue request and more…

 Resetting the password  1. In case the customer doesn’t recollect his Internet banking password then he has to submit a request letter to send a fresh pin/password through any of the branches of LVB. In the interest of safety of our customer’s funds and confidentiality of information, no telephone or email request will be accepted for resetting the password.

2. On receipt of request through the branch, the Internet Cell will regenerate the password/pin and dispatch to the customer.  Unlocking the user id  1. If the customer tries to log in with a wrong password continuously for three times, the system will automatically lock his User Id. Under such circumstances, the customer can approach the Administrator through email to unlock the User Id provided he is aware of his password. The administrator will only release his locked User Id and will not reset his password. No telephone request will be accepted for unlocking the user id.