Co-operative banks: an important constituent of the Indian Financial System

Financial management refers to the efficient and effective management of money (funds) in such a manner as to accomplish the objectives of the organization. It is the specialized function directly associated with the top management

Objectives of Financial Management

The financial management is generally concerned with procurement, allocation and control of financial resources of a concern. The objectives can be-

1.     To ensure regular and adequate supply of funds to the concern.

2.     To ensure adequate returns to the shareholders this will depend upon the earning capacity, market price of the share, expectations of the shareholders.

3.     To ensure optimum funds utilization. Once the funds are procured, they should be utilized in maximum possible way at least cost.

4.     To ensure safety on investment, i.e. funds should be invested in safe ventures so that adequate rate of return can be achieved.

5.     To plan a sound capital structure there should be sound and fair composition of capital so that a balance is maintained between debt and equity capital.

Co-operative banks are an important constituent of the Indian Financial System, judging by the role assigned to them, the expectations they are supposed to fulfill, their number, and the number of offices they operate. The co-operative movement originated in the West, but the importance that such banks have assumed in India is rarely paralleled anywhere else in the world. Their role in rural financing continues to be important even today, and their business in the urban areas also has increased in recent years mainly due to the sharp increase in the number of primary co-operative banks.

The Co-operative banks have been established under Cooperative Societies Acts of different states. The co-operative movement was started in 1904 with a view to provide financial assistance to agricultural sector. Co-operative Banking Sector, though the oldest in the Banking Sector, it is one of the weakest segments of Indian Banking System. Both the Reserve Bank of India and the National Bank for Agricultural and Rural Development have taken various policy measures in respect of Urban Co-operative Banks and Rural Credit Co-operatives during the recent years to transform them into financially sound entities.

About Author: The author of this blog has done research on bpo, business solutions, customer service, outsourcing.

Customer Oriented HR Policy in Banks

A human resources department is a critical component of employee well-being in any business, no matter how small. HR responsibilities include payroll, benefits, hiring, firing, and keeping up to date with state and federal tax laws.

HR service management uses service management principles to help automate standardized human resources (HR) processes within your organization. HR service management manages the service relationships between HR and employees through an HR service catalog.

The cooperative banks are contemporarily aimed at as a customized organization. The physical and philological needs of the customers are of different look now than earlier. The customers not only need the services but also the way it is delivered. The initiative, endeavor and sincerity with quality of workmanship are vital ingredients for effective input and output relationship in the banks. To refer about the statement of Mckinsey & Co. “The effectiveness of an organization depends, to a great extent, on its ability to meet environmental needs.” The Intra and Inter relationship in cooperative banks must be conducive to good work culture. They must develop positive attitude towards the stakeholders of cooperative banks. Cooperative bank employees must work for the customers with integrity, sincerity, loyalty, conviction, commitment, dedication, honesty, cooperative spirit, team spirit, selfless and service mindedness. The staff must have the appropriate skills and aptitude and must be motivated. There must be proper HR management practices put in place.

Archis Business Solutions Pvt Ltd., established in 2014, with a team of professionals are providing services such as Consulting, Execution and implementation as well as skilled manpower to various Cooperative banks. The objective of Archis is to provide the BFSI & ITES Industry cost-effective outsourcing in the areas of Operations Management, Data Processing, Customer Service and Audits, & Compliance and HR service management.

Outsourcing in Co-operative banks

Outsourcing is an effective cost-saving strategy when used properly. It is sometimes more affordable to purchase a good from companies with comparative advantages than it is to produce the good internally.

Outsourcing can offer greater budget flexibility and control. Outsourcing lets organizations pay for only the services they need, when they need them. It also reduces the need to hire and train specialized staff, brings in fresh engineering expertise, and reduces capital and operating expenses.

Outsourcing in cooperative banking can for the most part be analyzed by way of responding to three significant questions. These questions are as follows:

    1) For what ‘reasons’ and in what areas is outsourcing used by particular banks and financial intermediaries, and the most significant practices described therein?

    2) What are the guidelines for ‘good’ outsourcing aimed at creating values?

    3)  What are the opportunities and risks of outsourcing policies followed by cooperative banks

Global trends in outsourcing indicate that the demand for this type of external service provider in the financial service industry is increasing, with ever more complex and articulated procedures that meet diversified needs, not only complying with reductions in costs but also having to do with a strong strategic impact on the development of banks.

In today’s modernized and competitive world, there is a demand for flexible, forthcoming, advanced and never-ending services like various software systems, ultramodern technology etc. in banking industry and Co-operative banks as well as Urban and Rural corporations are no exception to this and to guide them a right platform is needed. Archis Business Solutions Pvt Ltd., established in 2014, with a team of professionals are providing services such as Consulting, Execution and implementation as well as skilled manpower to various Cooperative banks. The objective of Archis is to provide the BFSI & ITES Industry cost-effective outsourcing in the areas of Operations Management, Data Processing, Customer Service and Audits & Compliance. With this Archis today has an end-to-end expertise in outsourcing & business processes.

Financial Strategy

Strategic financial management refers to study of finance with a long term view considering the strategic goals of the enterprise. Financial management is nowadays increasingly referred to as "Strategic Financial Management" so as to give it an increased frame of reference. To understand what strategic financial management is about, we must first understand what is meant by the term "Strategic". This is something that’s done as part of a plan that’s meant to achieve a particular purpose.

Why have a financial strategy?

Many organizations manage income from a number of different funding and finance sources - from donations, grants, contracts and income generated from trading. A financial strategy enables your organization to assess your financial needs and the sources of support required to meet your objectives and fulfill the organizational mission, whilst also planning for continued growth to enable stability. You're financial strategy will derive from your mission. So the first step is to clearly define why you exist and you plan to achieve your mission before preparing any budgets.

What's your mission?

A mission statement is a brief declaration of an organization's purpose and values - the reason why it exists. Your mission should be a long-term statement of intent deriving from the vision that originally inspired the organization to form. It shouldn't be a detailed list of what you will do, how you'll do it and when. With your direction clear you can create a timed and detailed work plan that outlines the operational activities necessary to achieve each goal down to the day to day activities. This will ensure that your mission and financial goals are complementary to each other rather than in competition.

About Author: The author of this blog has done research on customer service, business solutions, outsourcing.

Employee onboarding process

Onboarding, also known as organizational socialization, refers to the mechanism through which new employees acquire the necessary knowledge, skills, and behaviors to become effective organizational members and insiders. Tactics used in this process include formal meetings, lectures, videos, printed materials, or computer-based orientations to introduce newcomers to their new jobs and organizations.
Research has demonstrated that these socialization techniques lead to positive outcomes for new employees such as higher job satisfaction, better job performance, greater organizational commitment, and reduction in occupational stress and intent to quit. These outcomes are particularly important to an organization looking to retain a competitive advantage in an increasingly mobile and globalized workforce.
Each year, nearly 25% of the working population undergoes some type of career transition. Turnover is expensive, so it's important to support new employees with comprehensive onboarding to ensure their success.
Today, orientation is not a stand-alone event but part of a bigger process, often called onboarding. Some view onboarding as just a buzzword for orientation or something that occur at large companies only, but it's actually an opportunity for small and midsize businesses to do more to ensure that new employees become productive and satisfied members of their staff.
The employee onboarding process goes beyond mere practicality and acknowledges that what new employees learn in their first few weeks has long-term effects on their ability to tackle the challenges of today's faster-paced business environment. It covers matters related to training, scheduled milestones, mentoring programs and interactive meetings.
Employee onboarding: easing first-day anxieties
Even though new employees have likely been on your company premises previously during the interview phase, their experiences on the first day of work will leave a lasting impression. You need to offer a first-day welcome to begin the process of making them feel at home.
Onboarding during the first week
During the employee onboarding process, go over the basics about your small or midsize business, some of which may have been covered in the interview. Make sure that the newcomer knows whom to call - and how - for questions and emergencies.
Taking the onboarding process through the second week and beyond
A key part of the employee onboarding process is early follow-up. You or supervising managers should meet with employees at predetermined points: two weeks after the first day on the job, a month after, two months or at intervals that work best for each job's complexity and changeability. These follow-up meetings are also a good time to hear their assessment of the employee onboarding process thus far.





About Author- The author of this blog has a passion for writing about                                         outsourcing, customer service, bpo, business solutions etc., and has submitted many blogs on different platforms