ITM Case Study - Corporation Bank

By Rahul Gautam

Contacts

Mr. Viswanathan Prabhu – AGM, Kamla Nagar Branch

Mr. Deeptiman Sahani – Branch Manager, Model Town

Mr. Srinivas – Officer, Model Town Mr. Jacob Kumar – Chief Manager, Zonal

Computer Centre

Agenda

Introduction

Established as Canara Banking Corporation (Udipi) Ltd. in

March, 1906

Nationalised in 1980, Corporation Bank was the forerunner

when it came to evolving and adapting to the financial

sector reforms.

Became the Second Public Sector Bank in the country to

enter capital market, the IPO of which was over- subscribed

by 13 times.

The First Public Sector Bank to…

Provide Cash Management Services,

Gold Banking,

M-Commerce,

"Online" approvals for Educational loans,

100% CBS Compliance

Take technology to the rural masses in remotest

villages through low-cost branchless banking

Evolution of IT at Corporation Bank

1983 – Corporation bank used IT to implement Payroll systems

As operations of Corporation Bank grew, there were problems in Reconciliation, with high number of transactions to be accounted for

Operations were in house at that time, not outsourced

To overcome this, Total Branch Automation was implemented

Initially TBA operated as a distributed database with 1 server per branch

Consolidation used to be done at the Head Office and Zonal Office at the end of each day

Now Consolidation takes place in the centralized database as and when a transaction takes place

Journey

Customers

Individuals

Corporate clients

Cash Management Services (CAPS)

Some Statistics

Used Auto Ledger Posting Machines till 1990

1155 fully automated CBS branches

Takes 3-4 days to implement IT at a new branch.

1145 ATMs

1200 Branchless Banking Units

Plans to open 700 new branches in the next 5 years

Online Services

Payment of Income Tax

Payment of BSNL telephone bills

LIC Premium Payment

Online Railway Reservation

Online Trading

Pension Payments

Mutual Funds

Mobile/SMS Banking

Organization Structure - IT Hierarchy

GM - IT

DGM - IT

AGM - CBC

AGM - ATM

AGM - New Core

GM - Purcha

ses

CM - DEL

19 ZCCs

ATMIntern

etCBS

OfficerSMCM

CM CMCM

New Core

Currently using COBOL Database Limitations wrt MIS Updating to Oracle Database in order to facilitate

adding new queries, fields, etc. Oracle chosen due to its dynamic quality CBC – Core Banking Centre Chief Manager takes care of purchasing of

assets, etc.

Hardware – Kamla Nagar Branch

Number of desktops: 25

Number of Laptops: 0

Number Scanners: 1

Number of Printers: 6

Manufacturer Software

Operating System: Windows XP

Oracle DBMS

Configuration of systems used:

HCL System

320 GB hard disk

2.13 GHz Processor Speed

1 GB RAM

ATM

First launched in Mumbai & Bangalore in 1995

‘Through the wall’ ATMs costing INR 15-20 lakhs

‘Lobby ATMs’ used today

Data centre for ATMs at Bangalore

ATM Monitoring Centre at Mumbai which does

not allow for cash-out situations

Currently use IBM 4800 Sun Servers

Services offered by a Corp Bank ATM

Cash Withdrawal Fast Cash options Balance Enquiry, Mini Statement (Last 7 entries) Deposit of Cash and Cheques (in full fledged ATMs) Payment of LIC premium Mobile Recharge Visa Money Transfer (Up to 5 accounts can be linked) NEFT Transaction up to Rs.15,000/- Other facilities like Update Contact Number, Change

Password etc.

Vendors/Outsourced Agencies/ZCC

Opus Software Solutions – Provide S/w and H/w related solutions for ATMs

Wipro – Responsible for Network related management

Oracle – Responsible for storage and protection of data

Hughes Communication India Ltd. – Maintain VSATs of ATMs

Euronet Worldwide India – Monitor activities related to ATMs

Zonal Computer Centre – Offers support and maintenance for any ATM related issues such as supply of hardware, link maintenance, etc.

SMS Banking

Started with simple services like knowing one’s balance

Cheque Status Enquiry Fund Transfer Payment of LIC Premium Alerts for transactions

Zonal Computer Centre (ZCC)

19 Zonal Offices in all Each office has a HR, Support, IT, Security and Recovery

centers ZCC Maintains all the 100 branches and 140 ATMs in Delhi Checks the connectivity of other branches by the color of

the link based on ping replies (Red – Disconnected, Green – Connected)

Delhi ZCC manned by three employees – Chief Manager, Manager and Officer

Status reports from all ATMs sent to their respective ZCCs at EOD

Status reports from all ZCCs sent to the HO at EOD Zonalized reports forwarded to top management

Data Centers

One each for ATM, CBS and Internet Banking One server per Data Centre Hot Standby, Cluster Servers used ETACHI Intelligent Storage Systems – which data to

store, how to store it, where to store it, how to back it up, how to protect it, etc.

Disaster Recovery Centre at Mangalore – Replicated Servers

IBM 6700 Sun Servers used By 2007, Corp Bank connected all branches to its

servers

Human Resource Management System

– Uses PeopleSoft manufactured by Oracle

Technologies.

– Client-server based system and now moving to

web based architecture.

– Position management, Funding distribution,

Recruitment of workforce, Administering workforce

and Time collection are HR processes part of

PeopleSoft

PeopleSoft HRMS

PeopleSoft HRMS

Payroll and compensation Personal Information Leave Application Performance Management Tax Calculation Transfer ID Cards Loans Register

Expenses Assets and Liabilities Holiday Homes Staff loans LFC Medical Aid Staff welfare Staff loans

Application Portfolio

Core Banking Solution

System Flowchart

Panacea – Core Banking Solution

Manufactured by LaserSoft InfoSystems Ltd.

Extensive software with 6000 software options - Bundled with third party

applications like eCapital and eCircular.

At corporation bank, runs on Sun 1280 servers

Panacea system is scalable to over 10,000 branches and 89 million transactions

per day

Cost : 8paise per account per month ( Network rentals, hardware maintenance,

software maintenance)

Bandwidth Used : 0.1 kbps per user

Database Size: 250GB & response time for users: 20 milliseconds

EOD Times: Less than 15 minutes

Lowest TCO core banking implementation in the industry

LaserPanacea

Menu Levels

Level 1 - Operator

– Entry or Query Operations

Level 2 - Officer/Manager

Level 3 - Core User

Level 4 - Internal auditors/Concurrent auditors

– Query and Report operations

Panacea Screenshot 1

Panacea Screenshot 2

Signature Scanning

Format- TIF (Tagged Image File)

Naming of file: elements in name of file

Branch Code ; Account type, Sub-type;

The Account Number; Number of signatures

The scanned image files saved in the local hard disk and a zip file created in a Windows based PC

A copy uploaded to the Core server to the directory “/global/report/sigupld” by giving the ftp command

Corporation Bank Home Page

eCircular – Paper Less Document Management System

eCapital

EJ Archival and Retrieval System

Lending Automation and Processing System (LAPS)

Branch manager forwards the loan application to higher authority (ZO retail hub) for sanctioning

Leave Fare Concession Block Encashment (LFC)

Procedures

Code manuals like ‘Manual on Currency Chest

Operations’ used

No IT training manuals provided to the employees

Employees learn through self-study

Other manuals, application forms and other

documents are made available on the intranet

Manuals

Training

15-30 days of training for new IT officers Major training centers at Bangalore and

Mangalore

Telecom/Networks

One Cisco 2841 router

One leased line (MTNL) and one ISDN line

2 telephone lines

No Wireless System

No Card Access System

Manual recording of attendance

Thank You!