Professional Documents
Culture Documents
Organizational Structure of SBI
Organizational Structure of SBI
ORGANISATIONAL
STRUCTURE OF STATE
BANK OF INDIA
4.1 INTRODUCTION
81
First the structure must identify the various tasks or processes
necessary for the organisation to reach its goals. This dividing
of tasks into smaller parts is often called "division of labour".
Even small organisations (those with fewer than. ^ One hundred
employees) use division of labour. The organisation structure is
concerned with the establishment of positions and the
relationship between positions. It provides an appropriate frame
work for authority relationships. Organisational structure
involves arrangement of activities and assignment of personnel
to these activities in order to achieve the organisational goals.
It is away by which various parts of an organisation are tied
together in a coordinated manner and it illustrates the various
relationships among various levels of the hierarchy within the
organisation as well as horizontal relationships among various
aspects of organisational operations. A well planed organisation
structure results in the better use of resources.
82
job and this avoids misapplications of human resources
thus resulting in optimal utilisation of employee efforts.
This would ensure efficiency in the functioning of the
enterprise.^
i
Commercial Banks Co-operative Credit Institutions
1
Scheduled Commercial Non-Scheduled Urban Co-operatives Rural Co-operative
Banks Commercial Banks Banks Credit Institutions
Local Area Banks
Multi State
State Bank of India Nationalized Indian Private Foreign Operating in
and its Associates Bdnks Banks Banks Single State
83
The structure of Indian banking is organised under two
ternns first is commercial banl<s and second is co-operative
credit institutions. Commercial banks are also divided into two
heads one is scheduled commercial banks and second is non-
scheduled commercial banks. Scheduled commercial banks
have also two branches (i) Public sector banks (ii) Private
sector banks.
84
4.3 ORGANISATIONAL STRUCTURE OF STATE BANK OF
INDIA
t_ -'
o en'
Q) -S
ir c (0
Q(S
O) 9 o
C d] ^ -S
-
(0 .9 E.>
^i
o-i
S D
s
tj <A 0
Q
e DC ^c(0 c
Ol m m <D
c 0.
0 > (0
^i
OJ ( 0 ^c_,
c 00
TO 0
a0) *;
lllll
to
i
ll
2 3 0
a
i^ 1 (/) SH 1
i
s .
mu It
c
0
,_
<0
o TO
(0 n
1 1
1
u n'
E !s X 0
lili! ti
0
Qt/} 1 2
1 1
0) 0)T3 m to
r
C t=
u O) re a> m _J
O
c
2
TO
5^
Q
1
i
c r.
OJ
0 0
0)
r
0
r.
W
n
II 1
m
c t ~ CO
o -
O)*
ill
c
o
c
1
Q-
_ c
res
O D 'i'
c JS
S
D) ID a .
C to
(0
C
to
5 cd
>. 0) 1 s
0 > 0
__^
9.-
III"
^ j^' 0
t
c .5
S
(D
0
0 ,?i (0 C
re S| C 0)
cn u
nj 1-
II
ir e
. 2 nJ
J^ V- 3 Q
.5^
0
22
Q 0,
c
^ c e 1?
% n
ii in^ !r 0
c c c
B
^ 1 0 ss s3^ 0)
11II i
0 _ 0) 13
o> m
sS 3 > ,,c
Q
r
r
1| Q.C) 0 ^ f s.
1
Q
T3
C
(0
c0 5to
1i 11 I f 1
0 0
t TO TO E .c 8
1 0 s"
c 9.
0 S
S ros- _c1
0
1i J
- :)
1
y> CO c
^^ 0 0
0
CD < 0 {^
0
^
0
85
The apex body of the bank, the central office is headed by
a chairnnan who is assisted by a managing directors. The
Chairman and the Managing Directors are appointed by the
govt, of India. Besides there are positions of Deputy Managing
directors, one each for commercial banking, HR and OD,
international banking associate banks and planning, industrial
rehabilitation, personal and services. Banking and computer
system and technology corporate operations, personnel,
development banking and treasury and investment management.
The activities of the deputy managing director (DMD) are co-
oridinated by the managing director (M.D.) A central
Management committee comprising of chairman, MD and DMD's
exists for the purpose of taking important policy decisions. The
central office is mainly concerned with corporate policy and
planning, development of critical resources, large advances,
investments and control of foreign offices. The organizational
structure of central office is shown in Chart No. 4.2
86
4.3.2 Local Head Office
111
1
? c
CO
"TO
o
e-
s f, .^f
c a.
(U
1-
:J ra
n
o
o o
u
m .y ^- c 0)
h F
T:I
P-.o n >
a
<.
o
m o
C7)
6
< o
T3 a: O)
n c j2 c
* _ I "ra
.c c 0 c ra
Q. 5 ^
TO
e oc CO
T3 CO a 2=5
0} C O CO
S w ^ COCD
PI CO
c 3
u M3 3 S
Q: ^ffl s o
<N r> TT
_,
u r
.n o
ra
5 E sB (D
?&=- > h
IP 5.8
c a>E
oQ n
CD m ^
f 0)
?
in E
O
a:
i a.
^ CQ
87
The central office has circles working directly below it.
The apex body of a circle is the local head office (LHO). LHO is
headed by chief general manager (CGM). The CGM is the chief
executive of a circle stationed at local head office and he is
envisaged as an extended arm of the corporate management on
location. There are two general manager (GM) one for
operations and the other for planning in each circle. The CGM is
also the member secretary of the local Board and in addition,
discharge the responsibility of coordinating the activities of
operations and planning wing for achieving optimum results at a
circle level. GM (operations) primarily attends to all operational
matters emanating from regional offices and assume total
operation responsibility for the circle. GM (planning) is the chief
executive in the circle and is charged with the responsibility of
providing inputs to the central office for the evolution of the
banks policies as also to make on going assessment of its
policies and procedures keeping in view of requirements of the
operations wing. The detailed organisation structure of LHO is
shown as Chart No. 4.3.
88
4.3.3 Zonal Office
i3-
^ c "
(5 S<J
S"*!
*^ 5 =
10 O r f
2 c
u.
- - . . 0>
s .
a.5
"> c
i3 w o n
a> E D-5
m 3 O '^
^
liil 11
c m
g -
111 Si
CD V
_J
a
c
C1-"?
i&
ft^/!i 0)
Q ^
s.
3
O CD
so ~
1
se Yl
><
%i
5 5
O
o
Q.
Q.
EO 13
og
u.
0)
ff
(0
c(0 li
5 <
1x:
O
89
At the zonal level, the office Is headed by deputy general
manager (DGM) and a team of regional managers called
assistant general manager (Region) and is responsible for
operation control over branches in their region. They provide
necessary support to the branches by prompt attendance to the
financial needs of customers which fall outside the purview of
the branch manager. They also convey the bank expectations
and priorities in the area of business development and provide
necessary support to the branch staff in implementation of
policies and co-ordinate the functioning of branches. The
organisation structure of zonal offices is shown in chart No. 4.4.
90
4.3.4 Branch office
o ro
c
J2 o
fa
o 0) a.
Q,
<U o
O O
O) (1)
(0 0)
c CO
re o u
S c rigi
J: "S J3
u CO
c !F
re O
91
The bank being a service sector organisation, its internal
setup sliould reflect and respond to the needs of its customers.
In 1971, State bank made a shift from the traditional tasks of
accepting deposits and granting loans and re-organised the
organisaiton structure according to market segments by
identifying various customer groups. At the branch level as
shown in chart 4.5 the banks domestic operations are grouped
into five categories to achieve a focused business thrust at the
branch level. There market segments are-
c) Agriculture banking
e) Government banking
92
bank scheme. The banks mission has been spelt out as "A
premier commercial bank committed to serve the national
development" and to achieve the goal of "profit with growth" and
all these have become possible by creating a well designed
organisational structure for the branches regional offices, LHOs
and central office as described earlier.
93
The Chairman, Deputy Chairman and managing directors
hold office for such term not exceeding 5 year as the central
govt, may fix at the time of appointed them. They are eligible for
reappointment. The ex-officio director and those nominated by
the central government hold office for 4 years and are eligible
for re-election and re-nomination. Other nominated director hold
office during the presence of nominated authority.
Hierarchy of management
94
Table No. 4.3
Officers
Scale I = Rs. 1 0 0 0 0 - 4 7 0 - 1 2 8 2 0 - 5 0 0 - 1 4 3 2 0 - 5 6 0 - 1 8 2 4 0
Scale II = Rs. 1 3 8 2 0 - 5 0 0 - 1 4 3 2 0 - 5 6 0 - 1 9 9 2 0
Scale IV = Rs. 2 0 4 8 0 - 5 6 0 - 2 1 0 4 0 - 6 2 0 - 2 4 1 4 0
Scale V = 24140-620-26620
Sc^le VI = 26620-680-29340
Clerical Staff
4410-215-5055-335-6060-470-7940-500
9440-560-11680-970-12650-560-13210
Subordinate Staff
4060-105-4270-115-4500-135-4770-165
5265-195-6045-235-6750-270-7560
95
4.2.2 Organisational Control Centres
96
the guide-lines issued by the state bank of India on matters like
notification of vacancies through employment exchanges
minimum qualifications relaxations to certain categories of
candidates etc. subsidiaries are encouraged to adopt modern
techniques in selecting proper candidates for these jobs. As
regards recruitment of officers taken directly a selection board
has been constituted by the State bank of India which makes
selection of candidates on an all India basis both for the State
bank of India and subsidiaries. Besides saving costs for the
subsidiaries, it is stated that the board ensures that officers of
right type with good academic qualification are taken in the
service of the subsidiaries.
97
subsidiaries have been encouraged to open residential and non
residential training centres in the lines of the State bank.
A change agent
An internal consultant
Programmes conducted
Credit management
Risk management
International banking
98
Derivatives
Professional effectiveness
Stress management
Role efficacy
4.7 CONCLUSION
99
decision taken by the government related to the bank should be
adopted after consulting the banking experts. Although highly
competitive have been appointed as managers in the bank but
it could be better some consultancy services may be taken at
different level.
100
REFERENCES
101