A PROJECT REPORT ON“FOREX OPERATION IN BANK OF MAHARASHTRA”

IN PARTIAL FULLFILLMENT OF THE REQUIREMENT FOR THE AWARD OF DEGREE OF MASTERS OF MANAGEMENT STUDIES

MMS - Operations(2014-2016)

SHEILA RAHEJA SCHOOL OF BUSINESS MANAGEMENT AND RESEARCHRaheja Education Complex, Kher Nagar, Opp. Chhatrapati Shivaji Ground, Bandra (East), Mumbai-

400051.

Submitted By:- Projected By:-ROHIT BORDE DR.SHAILJA BADRARoll No-402MMS(2014-16)

PROBLEM STATEMENT

TO STUDY THE FOREX OPERATION IN BANK OF MAHARASHTRA.

RESEARCH OBJECTIVE

To understand the Forex Operations in Bank of Maharashtra.

To understand issue and challenges related to Forex operations in Bank of Maharashtra.

To understand the procedure of import and export credit.

To recommend the solution to the problems associated with Forex Operation in Bank of Maharashtra.

RESEARCH HYPOTHESIS

Set 1:-

Ho :- There are no issues and challenges involved with Forex Operation in Bank of Maharashtra.

H1 :- There are issues and challenges involved with Forex Operation in Bank of Maharashtra. Set 2

Ho :- There is no flexibility in the procedure of exports and imports credits.

H1 :There is flexibility in the procedure of exports and imports credits.

RESEARCH METHODOLOGY Sample Strategy:-Sample Size: 50Details of the Sample: Bank Customers Sampling Method: Simple Random Sampling Constraints: Time, Number of respondents, Location. Data Collection Methods:

SECONDARY DATA PRIMARY DATA

• Newspaper• Magazines• Reference books• Internet• E-journal of bank of Maharashtra

• Method: Survey • Data collection instrument : Questionnaire•Contact method : Personal interview•Statistical tools used : Figs & tables and Percentage method

VARIABLE NAME FREQUENCY PERCENT PERCENT (%)Age (year): 21-25 26-35 36-45 ≥45

1215194

243

388

Gender:MaleFemale

3713

74.0026.00

Research Design:-

The research design used is descriptive research design in which the conclusion is made on the secondary data available with the researcher.

Stastical Tools To Be Used:-

Data Collection Method : SurveyData Collection Instrument : QuestionnaireSoftware's to be used : MS Excel

Data Frequency Table:-

DATA ANALYSISQ.1.Which foreign operations are typically used in bank of Maharashtra?

Q.2. Do you think Bank of Maharashtra foreign exchange policies are sufficient/suitable?

Q.3. Do you think foreign exchange service charges are costly ?

Q.4. Which exports schemes are you mostly involved with ?

Q.5. Where does Bank of Maharashtra provides the facility to open foreign deposit A/c?

Q.6. Do you think the procedure of import and exports credit is flexible?

Q.7. Do you think Response time in Bank of Maharashtra is ?

Q.8. What are the problems associated with Bank of Maharashtra?

HYPOTHESIS TESTING Hypothesis Set 1:-Ho : There are no issues and challenges involved with Forex Operation in Bank of MaharashtraH1 :There are issues and challenges involved with Forex Operation in Bank of Maharashtra

Q.1.Do you feel that there is more trained staff needed to handle trade finance operation?

Hypothesis testing: -Based on the responses to the questions above it can be noted that the respondents to apply trade finance operation in banks there is high need to training and skill development of the human resources in the bank Thus Set2 H0 is accepted.

Hypothesis Set 2:-

Ho : There is no flexibility in the procedure of exports and imports credits.H1 :There is flexibility in the procedure of exports and imports credits.

Q.2. Do you think the procedure of import and exports credit is flexible?

Hypothesis Testing: -Based on the responses to the questions above it can be noted that the respondents belive thatflexibility of procedure of export and import credit.

Thus Set1 H1 is accepted.

FINDINGS & CONCLUSION Banks foreign operations include import finance, export finance, foreign remittances and other financial services.

Bank totally depends on SWIFT system and on new operating system. In case of failure of this system, bank does not have any other option but to stop working.

Banking system is not user-friendly. To operate this system, an employee needs special training.

Bank has laid some policies in case of remittance for old and well known customer and also new customer in order to create long term relations with new customers.

Bank always tries to increase foreign currency deposits through NRI a/c, FCNR (B) a/c, NRO a/c.

Bank of Maharashtra charges are very minimum, which attracts maximum number of customers and the old customers are retained.

Customers are highly satisfied with the services rendered by the bank.

The procedure of import and export credit is flexible and very simple to understand to exporters and importers.

SUGGESTIONS

The banks employees cannot adjust to high system and technology so they need training to get accustomed to it and perform efficiently.

Bank should provide the facility to open foreign deposit accounts at all branches.

Banks must try to know and satisfy its customer needs better.

Bank should try to attempt in good faith to resolve any disputes or differences with customers by setting up complaint redressal cells within the organization.

To spread general awareness about potential risks in contracting loans and encourage customers to take independent financial advice and not act only on representation from the bank.

Many exporters are not aware of the various policies of ECGC .The bank should make available the information regarding the various policies.

Bank should focus on and increase its operations in currency changing as there is a lot of space in this activity and many specialized players have entered in this activity.

Today customers need fast services, so bank must try to increase efficiency, quality of services and minimum transaction time of settlement.

Bank should promote and co-sponsor workshop seminar on import and export business credit facilities available for export and import of goods and services, risk management while exporting and importing, various opportunities available for benefits of existing and potential exporters.