View
223
Download
0
Category
Preview:
Citation preview
8/2/2019 Sweety Project
1/62
SUMMER TRAINING REPORT
ON
BUSINESS PROCESS RE-ENGINEERING
IN SBI
SUBMITTED BY:
SANA JAN
ROLL NO-12
MFC PART-II
BATCH 2010-2012
In Partial Fulfillment of the Requirements for the Degree of
MASTER OF FINANCE AND CONTROL
SUBMITTED TO:
COMPANY GUIDE ACADEMIC GUIDE
MR. RAJIV SHYAM SINGH PROF.(Dr.)JYOYI SHEKHAR
DEPUTY MANAGER DEPT.OF APPLIED ECONOMICS &
COMMERCE
Regional business office of SBI PATNA UNIVERSITY
PATNA
8/2/2019 Sweety Project
2/62
DECLARATION
I, Sana jan, Roll no-12, MFC programme, Dept.of Applied Economics &
Commerce,PATNA UNIVERSITY,
batch of 2010-2012 do hereby solemnly declare that this
Dissertation is an original work of mine and this has not been submitted to
any other institute/ University towards any other degree/diploma.
SANA JAN
8/2/2019 Sweety Project
3/62
ACKNOWLEDGMENTS
.
My sincere thanks goes to Mr. ANIL KUMAR SHARMA,
REGIONAL MANAGER (Regional business office of SBI) GAYA, for givingme an opportunity to do project and for extending his valuable time and
guidance and support throughout my project.
I would also like to extend my sincere thanks to Mr. RAJIV
SHYAM SINGH, SME, DEPUTY MANAGER (Regional Business office of
SBI) GAYA, for his continuous support and help to make me understand
about the topic and for the completion of this project.
I would also like to extend my gratitude to my parents, friends
for their consistent encouragement, suggestions and moral support.
SANA JAN
8/2/2019 Sweety Project
4/62
CONTENT
CHAPTER 1: INTRODUCTION
History of bank
Commercial role of bank
Banks in the economy
History of banking in India
CHAPTER 2: COMPANY PROFILE
Brief on State Bank Of India
Vision
Mission
Organizational Structure
CHAPTER 3 : OBJECTIVE OF THE STUDY
CHAPTER 4 : RESEARCH METHODOLOGY
Research Design
Sampling Methodology
Tools of Analysis
Limitation of study
CHAPTER 5 : BUSINESS PROCESS RE-ENGINEERING IN SBI
History of BPR
BPR IN SBI
BPR Initiatives
8/2/2019 Sweety Project
5/62
Contribution of IT in SBI
CHAPTER 6 : CONCLUSION
8/2/2019 Sweety Project
6/62
BANK
A bank is a financial intermediary that accepts deposits and channels those depositsinto lending activities. Banks are a fundamental component of the financial system, andare also active players in financial markets. The essential role of a bank is to connectthose who havecapital (such as investors or depositors), with those who seekcapital(such as individuals wanting a loan, or businesses wanting to grow).
Banking is generally a highly regulated industry, and government restrictions onfinancial activities by banks have varied over time and location. The current set of globalstandards are called Basel II. In some countries such as Germany, banks havehistorically owned major stakes in industrial corporations while in other countries suchas the United States banks are prohibited from owning non-financial companies. InJapan, banks are usually the nexus of a cross-share holding entity known as thekeiretsu. In France, bancassurance is prevalent, as most banks offer insurance services(and now real estate services) to their clients. The most recent trend has been theadvance of universal banks, which attempt to offer their customers the full spectrum offinancial services under the one roof.
The oldest bank still in existence is Monte dei Paschi di Siena, headquartered in Siena,
Italy, which has been operating continuously since 1472.
HISTORY
Banks date back to ancient times. During the 3rd century AD, banks in Persia and other
territories in the Persian Sassanid Empire issued letters of credit known as akks.
Muslim traders are known to have used the cheque or akksystem since the time of
Harun al-Rashid (9th century) of the Abbasid Caliphate. In the 9th century, a Muslimbusinessman could cash an early form of the cheque in China drawn on sources in
Baghdad, a tradition that was significantly strengthened in the 13th and 14th centuries,
during the Mongol Empire.Fragments found in the Cairo Geniza indicate that in the 12th
century cheques remarkably similar to our own were in use, only smaller to save costs
on the paper. They contain a sum to be paid and then the order "May so and so pay the
bearer such and such an amount". The date and name of the issuer are also apparent.
http://en.wikipedia.org/wiki/Financial_intermediaryhttp://en.wikipedia.org/wiki/Financial_systemhttp://en.wikipedia.org/wiki/Financial_marketshttp://en.wikipedia.org/wiki/Capitalhttp://en.wikipedia.org/wiki/Loanhttp://en.wikipedia.org/wiki/Bank_regulationhttp://en.wikipedia.org/wiki/Basel_IIhttp://en.wikipedia.org/wiki/Germanyhttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/Keiretsuhttp://en.wikipedia.org/wiki/Francehttp://en.wikipedia.org/wiki/Bancassurancehttp://en.wikipedia.org/wiki/Universal_bankhttp://en.wikipedia.org/wiki/Financial_serviceshttp://en.wikipedia.org/wiki/Monte_dei_Paschi_di_Sienahttp://en.wikipedia.org/wiki/Sienahttp://en.wikipedia.org/wiki/Italyhttp://en.wikipedia.org/wiki/Iranhttp://en.wikipedia.org/wiki/Sassanid_Empirehttp://en.wikipedia.org/wiki/Letter_of_credithttp://en.wikipedia.org/wiki/Islamic_economics_in_the_worldhttp://en.wikipedia.org/wiki/Chequehttp://en.wiktionary.org/wiki/%E1%B9%A3akkhttp://en.wiktionary.org/wiki/%E1%B9%A3akkhttp://en.wiktionary.org/wiki/%E1%B9%A3akkhttp://en.wikipedia.org/wiki/Harun_al-Rashidhttp://en.wikipedia.org/wiki/Abbasid_Caliphatehttp://en.wikipedia.org/wiki/Chinahttp://en.wikipedia.org/wiki/Baghdadhttp://en.wikipedia.org/wiki/Mongol_Empirehttp://en.wikipedia.org/wiki/Cairo_Genizahttp://en.wikipedia.org/wiki/Cairo_Genizahttp://en.wikipedia.org/wiki/Mongol_Empirehttp://en.wikipedia.org/wiki/Baghdadhttp://en.wikipedia.org/wiki/Chinahttp://en.wikipedia.org/wiki/Abbasid_Caliphatehttp://en.wikipedia.org/wiki/Harun_al-Rashidhttp://en.wiktionary.org/wiki/%E1%B9%A3akkhttp://en.wikipedia.org/wiki/Chequehttp://en.wikipedia.org/wiki/Islamic_economics_in_the_worldhttp://en.wikipedia.org/wiki/Letter_of_credithttp://en.wikipedia.org/wiki/Sassanid_Empirehttp://en.wikipedia.org/wiki/Iranhttp://en.wikipedia.org/wiki/Italyhttp://en.wikipedia.org/wiki/Sienahttp://en.wikipedia.org/wiki/Monte_dei_Paschi_di_Sienahttp://en.wikipedia.org/wiki/Financial_serviceshttp://en.wikipedia.org/wiki/Universal_bankhttp://en.wikipedia.org/wiki/Bancassurancehttp://en.wikipedia.org/wiki/Francehttp://en.wikipedia.org/wiki/Keiretsuhttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Germanyhttp://en.wikipedia.org/wiki/Basel_IIhttp://en.wikipedia.org/wiki/Bank_regulationhttp://en.wikipedia.org/wiki/Loanhttp://en.wikipedia.org/wiki/Capitalhttp://en.wikipedia.org/wiki/Financial_marketshttp://en.wikipedia.org/wiki/Financial_systemhttp://en.wikipedia.org/wiki/Financial_intermediary8/2/2019 Sweety Project
7/62
The earliest known state deposit bank,Banco di San Giorgio(Bank of St. George), was
founded in 1407 at Genoa.
COMMERCIAL ROLE OF BANKS
The commercial role of banks is not limited to banking, and includes:
issue of banknotes (promissory notes issued by a banker and payable to beareron demand)
processing of payments by way of telegraphic transfer, EFTPOS, internetbanking or other means
issuing bank drafts and bank cheques accepting money on term deposit lending money by way of overdraft, installment loan or otherwise providing documentary and standby letters of credit (trade finance), guarantees,
performance bonds, securities underwriting commitments and other forms of off-balance sheet exposures
safekeeping of documents and other items in safe deposit boxes currency exchange acting as a 'financial supermarket' for the sale, distribution or brokerage, with or
without advice, of insurance, unit trusts and similar financial products.
CHANNELS
Banks offer many different channels to access their banking and other services:
A branch, banking centre or financial centre is a retail location where a bank orfinancial institution offers a wide array of face-to-face service to its customers.
ATM is a computerised telecommunications device that provides a financialinstitution's customers a method of financial transactions in a public space
without the need for a human clerk or bank teller. Most banks now have moreATMs than branches, and ATMs are providing a wider range of services to awider range of users. For example in Hong Kong, most ATMs enable anyone todeposit cash to any customer of the bank's account by feeding in the notes andentering the account number to be credited. Also, most ATMs enable cardholders from other banks to get their account balance and withdraw cash, even ifthe card is issued by a foreign bank.
http://en.wikipedia.org/wiki/Bank_of_Saint_George_(Genoa)http://en.wikipedia.org/wiki/Bank_of_Saint_George_(Genoa)http://en.wikipedia.org/wiki/Bank_of_Saint_George_(Genoa)http://en.wikipedia.org/wiki/Genoahttp://en.wikipedia.org/wiki/Banknoteshttp://en.wikipedia.org/wiki/Promissory_noteshttp://en.wikipedia.org/wiki/EFTPOShttp://en.wikipedia.org/wiki/Chequehttp://en.wikipedia.org/wiki/Chequehttp://en.wikipedia.org/wiki/Term_deposithttp://en.wikipedia.org/wiki/Overdrafthttp://en.wikipedia.org/wiki/Letters_of_credithttp://en.wikipedia.org/wiki/Trade_financehttp://en.wikipedia.org/wiki/Performance_bondhttp://en.wikipedia.org/wiki/Safe_deposit_boxhttp://en.wikipedia.org/wiki/Branch_(banking)http://en.wikipedia.org/wiki/Automatic_teller_machinehttp://en.wikipedia.org/wiki/Bank_tellerhttp://en.wikipedia.org/wiki/Bank_tellerhttp://en.wikipedia.org/wiki/Automatic_teller_machinehttp://en.wikipedia.org/wiki/Branch_(banking)http://en.wikipedia.org/wiki/Safe_deposit_boxhttp://en.wikipedia.org/wiki/Performance_bondhttp://en.wikipedia.org/wiki/Trade_financehttp://en.wikipedia.org/wiki/Letters_of_credithttp://en.wikipedia.org/wiki/Overdrafthttp://en.wikipedia.org/wiki/Term_deposithttp://en.wikipedia.org/wiki/Chequehttp://en.wikipedia.org/wiki/Chequehttp://en.wikipedia.org/wiki/EFTPOShttp://en.wikipedia.org/wiki/Promissory_noteshttp://en.wikipedia.org/wiki/Banknoteshttp://en.wikipedia.org/wiki/Genoahttp://en.wikipedia.org/wiki/Bank_of_Saint_George_(Genoa)8/2/2019 Sweety Project
8/62
Mail is part of the postal system which itself is a system wherein writtendocuments typically enclosed in envelopes, and also small packages containingother matter, are delivered to destinations around the world. This can be used to
deposit cheques and to send orders to the bank to pay money to third parties.Banks also normally use mail to deliver periodic account statements tocustomers.
Telephone banking is a service provided by a financial institution which allows itscustomers to perform transactions over the telephone. This normally includes billpayments for bills from major billers (e.g. for electricity).
Online banking is a term used for performing transactions, payments etc. overthe Internet through a bank, credit union or building society's secure website.
Mobile banking is a method of using one's mobile phone to conduct simplebanking transactions by remotely linking into a banking network.
Video banking is a term used for performing banking transactions or professionalbanking consultations via a remote video and audio connection. Video bankingcan be performed via purpose built banking transaction machines (similar to anAutomated teller machine), or via a video conference enabled bank branch.
http://en.wikipedia.org/wiki/Mailhttp://en.wikipedia.org/wiki/Telephone_bankinghttp://en.wikipedia.org/wiki/Online_bankinghttp://en.wikipedia.org/wiki/Mobile_bankinghttp://en.wikipedia.org/wiki/Video_bankinghttp://en.wikipedia.org/wiki/Videoconferencehttp://en.wikipedia.org/wiki/Videoconferencehttp://en.wikipedia.org/wiki/Video_bankinghttp://en.wikipedia.org/wiki/Mobile_bankinghttp://en.wikipedia.org/wiki/Online_bankinghttp://en.wikipedia.org/wiki/Telephone_bankinghttp://en.wikipedia.org/wiki/Mail8/2/2019 Sweety Project
9/62
BANKS IN THE ECONOMY
Economic functions
The economic functions of banks include:
1. issue of money, in the form of banknotes and current accounts subject to chequeor payment at the customer's order. These claims on banks can act as moneybecause they are negotiable and/or repayable on demand, and hence valued atpar. They are effectively transferable by mere delivery, in the case of banknotes,or by drawing a cheque that the payee may bank or cash.
2. netting and settlement of payments banks act as both collection and payingagents for customers, participating in interbank clearing and settlement systemsto collect, present, be presented with, and pay payment instruments. Thisenables banks to economise on reserves held for settlement of payments, sinceinward and outward payments offset each other. It also enables the offsetting ofpayment flows between geographical areas, reducing the cost of settlementbetween them.
3. credit intermediation banks borrow and lend back-to-back on their own accountas middle men.
4. credit quality improvement banks lend money to ordinary commercial andpersonal borrowers (ordinary credit quality), but are high quality borrowers. Theimprovement comes from diversification of the bank's assets and capital whichprovides a buffer to absorb losses without defaulting on its obligations. However,banknotes and deposits are generally unsecured; if the bank gets into difficultyand pledges assets as security, to raise the funding it needs to continue tooperate, this puts the note holders and depositors in an economicallysubordinated position.
5. maturity transformation banks borrow more on demand debt and short termdebt, but provide more long term loans. In other words, they borrow short andlend long. With a stronger credit quality than most other borrowers, banks can dothis by aggregating issues (e.g. accepting deposits and issuing banknotes) andredemptions (e.g. withdrawals and redemptions of banknotes), maintainingreserves of cash, investing in marketable securities that can be readily convertedto cash if needed, and raising replacement funding as needed from varioussources (e.g. wholesale cash markets and securities markets).
http://en.wikipedia.org/wiki/Banknoteshttp://en.wikipedia.org/wiki/Chequehttp://en.wikipedia.org/wiki/Banknoteshttp://en.wikipedia.org/wiki/Asset_liability_mismatchhttp://en.wikipedia.org/wiki/Asset_liability_mismatchhttp://en.wikipedia.org/wiki/Banknoteshttp://en.wikipedia.org/wiki/Chequehttp://en.wikipedia.org/wiki/Banknotes8/2/2019 Sweety Project
10/62
BANKING IN INDIA
Currently, India has 96 scheduled commercial banks (SCBs) - 27 public sector banks
(that is with the Government of India holding a stake), 31 private banks (these do not
have government stake; they may be publicly listed and traded on stock exchanges)
and 38 foreign banks. They have a combined network of over 53,000 branches and
49,000 ATMs. According to a report by ICRA Limited, a rating agency, the public sector
banks hold over 75 percent of total assets of the banking industry, with the private and
foreign banks holding 18.2% and 6.5% respectively.
EARLY HISTORY
Banking in India originated in the last decades of the 18th century. The first banks wereThe General Bank of India which started in 1786, and the Bank of Hindustan, both ofwhich are now defunct. The oldest bank in existence in India is the State Bank of India,which originated in the Bank of Calcutta in June 1806, which almost immediatelybecame the Bank of Bengal. This was one of the three presidency banks, the other twobeing the Bank of Bombay and the Bank of Madras, all three of which were establishedunder charters from the British East India Company. For many years the Presidencybanks acted as quasi-central banks, as did their successors. The three banks merged in1921 to form the Imperial Bank of India, which, upon India's independence, became theState Bank of India.
Indian merchants in Calcutta established the Union Bank in 1839, but it failed in 1848 as
a consequence of the economic crisis of 1848-49. The Allahabad Bank, established in
1865 and still functioning today, is the oldest Joint Stock bank in India. It was not the
first though. That honor belongs to the Bank of Upper India, which was established in
1863, and which survived until 1913, when it failed, with some of its assets and liabilities
being transferred to the Alliance Bank of Shimla.
The Bank of Bengal, which later merged with the Bank of Bombay and the Bank ofMadras to form the Imperial Bank of India in 1921.The first entirely Indian joint stock bank was the Oudh Commercial Bank, established in
1881 in Faizabad. It failed in 1958. The next was the Punjab National Bank, established
in Lahore in 1895, which has survived to the present and is now one of the largest
banks in India.
http://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Automated_teller_machinehttp://en.wikipedia.org/wiki/Bank_of_Bengalhttp://en.wikipedia.org/wiki/Bank_of_Bombayhttp://en.wikipedia.org/wiki/Bank_of_Madrashttp://en.wikipedia.org/wiki/Imperial_Bank_of_Indiahttp://en.wikipedia.org/wiki/Allahabad_Bankhttp://en.wikipedia.org/wiki/Alliance_Bank_of_Simlahttp://en.wikipedia.org/wiki/Bank_of_Bengalhttp://en.wikipedia.org/wiki/Bank_of_Bombayhttp://en.wikipedia.org/wiki/Bank_of_Madrashttp://en.wikipedia.org/wiki/Bank_of_Madrashttp://en.wikipedia.org/wiki/Imperial_Bank_of_Indiahttp://en.wikipedia.org/wiki/Faizabadhttp://en.wikipedia.org/wiki/Punjab_National_Bankhttp://en.wikipedia.org/wiki/Lahorehttp://en.wikipedia.org/wiki/Lahorehttp://en.wikipedia.org/wiki/Punjab_National_Bankhttp://en.wikipedia.org/wiki/Faizabadhttp://en.wikipedia.org/wiki/Imperial_Bank_of_Indiahttp://en.wikipedia.org/wiki/Bank_of_Madrashttp://en.wikipedia.org/wiki/Bank_of_Madrashttp://en.wikipedia.org/wiki/Bank_of_Bombayhttp://en.wikipedia.org/wiki/Bank_of_Bengalhttp://en.wikipedia.org/wiki/Alliance_Bank_of_Simlahttp://en.wikipedia.org/wiki/Allahabad_Bankhttp://en.wikipedia.org/wiki/Imperial_Bank_of_Indiahttp://en.wikipedia.org/wiki/Bank_of_Madrashttp://en.wikipedia.org/wiki/Bank_of_Bombayhttp://en.wikipedia.org/wiki/Bank_of_Bengalhttp://en.wikipedia.org/wiki/Automated_teller_machinehttp://en.wikipedia.org/wiki/Government_of_India8/2/2019 Sweety Project
11/62
FROM WORLD WAR I TO INDEPENDENCE
The period during the First World War (1914-1918) through the end of the SecondWorld War (1939-1945), and two years thereafter until the independence of India werechallenging for Indian banking. The years of the First World War were turbulent, and ittook its toll with banks simply collapsing despite the Indian economy gaining indirectboost due to war-related economic activities. At least 94 banks in India failed between1913 and 1918 as indicated in the following table:
YearsNumber of banksthat failed
Authorised capital(Rs. Lakhs)
Paid-up Capital(Rs. Lakhs)
1913 12 274 351914 42 710 109
1915 11 56 5
1916 13 231 4
1917 9 76 25
1918 7 209 1
POST-INDEPENDENCE
The partition of India in 1947 adversely impacted the economies of Punjab and WestBengal, paralyzing banking activities for months. India's independence marked the endof a regime of the Laissez-faire for the Indian banking. The Government of India initiatedmeasures to play an active role in the economic life of the nation, and the IndustrialPolicy Resolution adopted by the government in 1948 envisaged a mixed economy.This resulted into greater involvement of the state in different segments of the economyincluding banking and finance. The major steps to regulate banking included:
In 1948, the Reserve Bank of India, India's central banking authority, wasnationalized, and it became an institution owned by the Government of India.
http://en.wikipedia.org/wiki/First_World_Warhttp://en.wikipedia.org/wiki/Second_World_Warhttp://en.wikipedia.org/wiki/Second_World_Warhttp://en.wikipedia.org/wiki/Indian_independence_movementhttp://en.wikipedia.org/wiki/Economy_of_Indiahttp://en.wikipedia.org/wiki/Partition_of_Indiahttp://en.wikipedia.org/wiki/Punjab,_Indiahttp://en.wikipedia.org/wiki/West_Bengalhttp://en.wikipedia.org/wiki/West_Bengalhttp://en.wikipedia.org/w/index.php?title=Indian_independence_eovement&action=edit&redlink=1http://en.wikipedia.org/wiki/Laissez-fairehttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Mixed_economyhttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Mixed_economyhttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Laissez-fairehttp://en.wikipedia.org/w/index.php?title=Indian_independence_eovement&action=edit&redlink=1http://en.wikipedia.org/wiki/West_Bengalhttp://en.wikipedia.org/wiki/West_Bengalhttp://en.wikipedia.org/wiki/Punjab,_Indiahttp://en.wikipedia.org/wiki/Partition_of_Indiahttp://en.wikipedia.org/wiki/Economy_of_Indiahttp://en.wikipedia.org/wiki/Indian_independence_movementhttp://en.wikipedia.org/wiki/Second_World_Warhttp://en.wikipedia.org/wiki/Second_World_Warhttp://en.wikipedia.org/wiki/First_World_War8/2/2019 Sweety Project
12/62
In 1949, the Banking Regulation Act was enacted which empowered the ReserveBank of India (RBI) "to regulate, control, and inspect the banks in India."
The Banking Regulation Act also provided that no new bank or branch of anexisting bank could be opened without a license from the RBI, and no two bankscould have common directors.
However, despite these provisions, control and regulations, banks in India except theState Bank of India, continued to be owned and operated by private persons. Thischanged with the nationalisation of major banks in India on 19 July 1969.
NATIONALIZATION
The RBI was nationalized on January 1, 1949 in terms of the Reserve Bank of India(Transfer to Public Ownership) Act, 1948 (RBI, 2005b).[Reference www.rbi.org.in]
By the 1960s, the Indian banking industry had become an important tool to facilitate thedevelopment of the Indian economy. At the same time, it had emerged as a largeemployer, and a debate had ensued about the possibility to nationalise the bankingindustry. Indira Gandhi, the-then Prime Minister of India expressed the intention of theGOI in the annual conference of the All India Congress Meeting in a paper entitled"Stray thoughts on Bank Nationalisation." The paper was received with positive
enthusiasm. Thereafter, her move was swift and sudden, and the GOI issued anordinance and nationalised the 14 largest commercial banks with effect from themidnight of July 19, 1969. Jayaprakash Narayan, a national leader of India, describedthe step as a "masterstroke of political sagacity."Within two weeks of the issue of theordinance, the Parliament passed the Banking Companies (Acquisition and Transfer ofUndertaking) Bill, and it received the presidential approval on 9 August 1969.
A second dose of nationalization of 6 more commercial banks followed in 1980. Thestated reason for the nationalization was to give the government more control of creditdelivery. With the second dose of nationalization, the GOI controlled around 91% of thebanking business of India. Later on, in the year 1993, the government merged New
Bank of India with Punjab National Bank. It was the only merger between nationalizedbanks and resulted in the reduction of the number of nationalised banks from 20 to 19.After this, until the 1990s, the nationalised banks grew at a pace of around 4%, closer tothe average growth rate of the Indian economy.
The nationalised banks were credited by some, including Home minister P.Chidambaram, to have helped the Indian economy withstand the global financial crisisof 2007-2009.
http://en.wikipedia.org/wiki/State_Bank_of_Indiahttp://en.wikipedia.org/wiki/Indian_economyhttp://en.wikipedia.org/wiki/Indira_Gandhihttp://en.wikipedia.org/wiki/Prime_Minister_of_Indiahttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Nationalisationhttp://en.wikipedia.org/wiki/Jayaprakash_Narayanhttp://en.wikipedia.org/wiki/Parliament_of_Indiahttp://en.wikipedia.org/wiki/President_of_Indiahttp://en.wikipedia.org/w/index.php?title=New_Bank_of_India&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=New_Bank_of_India&action=edit&redlink=1http://en.wikipedia.org/wiki/Punjab_National_Bankhttp://en.wikipedia.org/wiki/Home_Minister_of_Indiahttp://en.wikipedia.org/wiki/P._Chidambaramhttp://en.wikipedia.org/wiki/P._Chidambaramhttp://en.wikipedia.org/wiki/Economy_of_Indiahttp://en.wikipedia.org/wiki/Financial_crisis_of_2007-2009http://en.wikipedia.org/wiki/Financial_crisis_of_2007-2009http://en.wikipedia.org/wiki/Financial_crisis_of_2007-2009http://en.wikipedia.org/wiki/Financial_crisis_of_2007-2009http://en.wikipedia.org/wiki/Economy_of_Indiahttp://en.wikipedia.org/wiki/P._Chidambaramhttp://en.wikipedia.org/wiki/P._Chidambaramhttp://en.wikipedia.org/wiki/Home_Minister_of_Indiahttp://en.wikipedia.org/wiki/Punjab_National_Bankhttp://en.wikipedia.org/w/index.php?title=New_Bank_of_India&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=New_Bank_of_India&action=edit&redlink=1http://en.wikipedia.org/wiki/President_of_Indiahttp://en.wikipedia.org/wiki/Parliament_of_Indiahttp://en.wikipedia.org/wiki/Jayaprakash_Narayanhttp://en.wikipedia.org/wiki/Nationalisationhttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Prime_Minister_of_Indiahttp://en.wikipedia.org/wiki/Indira_Gandhihttp://en.wikipedia.org/wiki/Indian_economyhttp://en.wikipedia.org/wiki/State_Bank_of_India8/2/2019 Sweety Project
13/62
LIBERALISATION
In the early 1990s, the then Narsimha Rao government embarked on a policy ofliberalization, licensing a small number of private banks. These came to be known asNew Generation tech-savvy banks, and included Global Trust Bank (the first of suchnew generation banks to be set up), which later amalgamated with Oriental Bank ofCommerce, Axis Bank(earlier as UTI Bank), ICICI Bank and HDFC Bank. This move,along with the rapid growth in the economy of India, revitalized the banking sector inIndia, which has seen rapid growth with strong contribution from all the three sectors ofbanks, namely, government banks, private banks and foreign banks.
The next stage for the Indian banking has been setup with the proposed relaxation inthe norms for Foreign Direct Investment, where all Foreign Investors in banks may begiven voting rights which could exceed the present cap of 10%,at present it has gone upto 74% with some restrictions.
The new policy shook the Banking sector in India completely. Bankers, till this time,were used to the 4-6-4 method (Borrow at 4%;Lend at 6%;Go home at 4) of functioning.The new wave ushered in a modern outlook and tech-savvy methods of working fortraditional banks.All this led to the retail boom in India. People not just demanded morefrom their banks but also received more.
Currently (2007), banking in India is generally fairly mature in terms of supply, product
range and reach-even though reach in rural India still remains a challenge for theprivate sector and foreign banks. In terms of quality of assets and capital adequacy,Indian banks are considered to have clean, strong and transparent balance sheetsrelative to other banks in comparable economies in its region. The Reserve Bank ofIndia is an autonomous body, with minimal pressure from the government. The statedpolicy of the Bank on the Indian Rupee is to manage volatility but without any fixedexchange rate-and this has mostly been true.
http://en.wikipedia.org/wiki/Narsimha_Raohttp://en.wikipedia.org/wiki/Liberalizationhttp://en.wikipedia.org/wiki/Axis_Bankhttp://en.wikipedia.org/wiki/UTI_Bankhttp://en.wikipedia.org/wiki/ICICI_Bankhttp://en.wikipedia.org/wiki/HDFC_Bankhttp://en.wikipedia.org/wiki/Economy_of_Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Economy_of_Indiahttp://en.wikipedia.org/wiki/HDFC_Bankhttp://en.wikipedia.org/wiki/ICICI_Bankhttp://en.wikipedia.org/wiki/UTI_Bankhttp://en.wikipedia.org/wiki/Axis_Bankhttp://en.wikipedia.org/wiki/Liberalizationhttp://en.wikipedia.org/wiki/Narsimha_Rao8/2/2019 Sweety Project
14/62
STATE BANK OF INDIA
COMPANY PROFILE:-
TypePublic (BSE: 500112, LSE:
SBID)
IndustryBanking
Financial services
Founded 1 July 1955
Headquarters Mumbai, Maharashtra, India
Key people O. P. Bhatt(Chairman)
Products
Investment Banking
Consumer Banking
Commercial Banking
Retail Banking
Private Banking
Asset Management
Pensions
Mortgages
Credit Cards
Revenue $28.212 billion (2010)
Profit $2.473 billion (2010)
Total assets $323.043 billion (2010)
http://en.wikipedia.org/wiki/Types_of_business_entityhttp://en.wikipedia.org/wiki/Types_of_business_entityhttp://en.wikipedia.org/wiki/Public_companyhttp://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://www.bseindia.com/stockreach/stockreach.htm?scripcd=500112http://en.wikipedia.org/wiki/London_Stock_Exchangehttp://www.londonstockexchange.com/exchange/prices-and-news/stocks/prices-search/stock-prices-search.html?nameCode=SBIDhttp://en.wikipedia.org/wiki/Industryhttp://en.wikipedia.org/wiki/Bankinghttp://en.wikipedia.org/wiki/Financial_servicehttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/O._P._Bhatthttp://en.wikipedia.org/wiki/Chairmanhttp://en.wikipedia.org/wiki/Product_%28business%29http://en.wikipedia.org/wiki/Investment_Bankinghttp://en.wikipedia.org/wiki/Consumer_Bankinghttp://en.wikipedia.org/wiki/Commercial_Bankinghttp://en.wikipedia.org/wiki/Retail_Bankinghttp://en.wikipedia.org/wiki/Private_Bankinghttp://en.wikipedia.org/wiki/Asset_Managementhttp://en.wikipedia.org/wiki/Pensionshttp://en.wikipedia.org/wiki/Mortgageshttp://en.wikipedia.org/wiki/Credit_Cardshttp://en.wikipedia.org/wiki/Revenuehttp://en.wikipedia.org/wiki/Revenuehttp://en.wikipedia.org/wiki/Net_incomehttp://en.wikipedia.org/wiki/Assethttp://en.wikipedia.org/wiki/File:SBI-logo.svghttp://en.wikipedia.org/wiki/Assethttp://en.wikipedia.org/wiki/Net_incomehttp://en.wikipedia.org/wiki/Revenuehttp://en.wikipedia.org/wiki/Credit_Cardshttp://en.wikipedia.org/wiki/Mortgageshttp://en.wikipedia.org/wiki/Pensionshttp://en.wikipedia.org/wiki/Asset_Managementhttp://en.wikipedia.org/wiki/Private_Bankinghttp://en.wikipedia.org/wiki/Retail_Bankinghttp://en.wikipedia.org/wiki/Commercial_Bankinghttp://en.wikipedia.org/wiki/Consumer_Bankinghttp://en.wikipedia.org/wiki/Investment_Bankinghttp://en.wikipedia.org/wiki/Product_%28business%29http://en.wikipedia.org/wiki/Chairmanhttp://en.wikipedia.org/wiki/O._P._Bhatthttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Financial_servicehttp://en.wikipedia.org/wiki/Bankinghttp://en.wikipedia.org/wiki/Industryhttp://www.londonstockexchange.com/exchange/prices-and-news/stocks/prices-search/stock-prices-search.html?nameCode=SBIDhttp://en.wikipedia.org/wiki/London_Stock_Exchangehttp://www.bseindia.com/stockreach/stockreach.htm?scripcd=500112http://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://en.wikipedia.org/wiki/Public_companyhttp://en.wikipedia.org/wiki/Types_of_business_entity8/2/2019 Sweety Project
15/62
Total equity $18.519 billion (2010)
Owner(s) Government of India
Employees 205,896 (2010)
Website Statebankofindia.com
Total ATM 21000
Symbol and slogan:
-> Symbol is the Key Hole, whose meaning is "Welcome to SBI".
-> Slogans are:
With you all the way Pure banking nothing else The Banker to every Indian The Nation banks on
LIST OF BANKS DIRECTORS AND LOCAL BOARD
MEMBERS CENTRAL BOARD:-
Shri O.P. Bhatt
Shri S.K. Bhattacharya
Shri R. Sridharan
Dr. Ashok jhunjhunwala
Shri Dileep C Choksi
Shri S Venkatachalam
Shri D. Sundaram
http://en.wikipedia.org/wiki/Ownership_equityhttp://en.wikipedia.org/wiki/Ownershiphttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Employmenthttp://en.wikipedia.org/wiki/Employmenthttp://en.wikipedia.org/wiki/Websitehttp://www.statebankofindia.com/http://www.statebankofindia.com/http://en.wikipedia.org/wiki/Websitehttp://en.wikipedia.org/wiki/Employmenthttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Ownershiphttp://en.wikipedia.org/wiki/Ownership_equity8/2/2019 Sweety Project
16/62
Dr. Devanand Balodhi
VISION:-
My SBI
My Customer first
My SBI: First in customer satisfaction
MISSION:-
We will be prompt, polite and proactive with our customers.
We will speak the language of young India.
We will create products and services that help our customers achieve their goals.
We will go beyond the call of duty to make our customers feel valued.
We will offer excellence in services to those abroad as much as we do to those in India.
VALUES:-
We will always be honest, transparent and ethical.
We wil respect our customers and fellow associates.
We will be knowledge driven.
We will learn and we will share our learning.
We will never take the easy way out.
We will nurture pride in India.
8/2/2019 Sweety Project
17/62
Organizational Structure
As of April 1, 2010
8/2/2019 Sweety Project
18/62
State Bank of India (Hindi:) (SBI) (BSE: 500112, LSE: SBID) is thelargest state-owned banking and financial services company in India, by almost every
parameter - revenues, profits, assets, market capitalization, etc. The bank traces its
ancestry to British India, through the Imperial Bank of India, to the founding in 1806 ofthe Bank of Calcutta, making it the oldest commercial bank in the Indian Subcontinent.
The Government of India nationalized the Imperial Bank of India in 1955, with the
Reserve Bank of India taking a 60% stake, and renamed it the State Bank of India. In
2008, the Government took over the stake held by the Reserve Bank of India.
SBI provides a range of banking products through its vast network of branches in India
and overseas, including products aimed at NRIs. The State Bank Group, with over
16,000 branches, has the largest banking branch network in India. With an asset base
of $260 billion and $195 billion in deposits, it is a regional banking behemoth. It has a
market share among Indian commercial banks of about 20% in deposits and advances,
and SBI accounts for almost one-fifth of the nation's loans.
SBI has tried to reduce over-staffing by computerizing operations and "golden
handshake" schemes that led to a flight of its best and brightest managers. These
managers took the retirement allowances and then went on to become senior managers
in new private sector banks.
The State bank of India is the 29th most reputed company in the world according to
Forbes.
State Bank of India is the largest of theBig Four Banksof India, along with ICICI Bank,
Punjab National Bank and Canara Bank its main competitors.
http://en.wikipedia.org/wiki/Hindi_languagehttp://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://www.bseindia.com/stockreach/stockreach.htm?scripcd=500112http://en.wikipedia.org/wiki/London_Stock_Exchangehttp://www.londonstockexchange.com/exchange/prices-and-news/stocks/prices-search/stock-prices-search.html?nameCode=SBIDhttp://en.wikipedia.org/wiki/Government-owned_corporationhttp://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/wiki/Financial_servicehttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Market_capitalizationhttp://en.wikipedia.org/wiki/British_Rajhttp://en.wikipedia.org/wiki/Imperial_Bank_of_Indiahttp://en.wikipedia.org/wiki/Bank_of_Calcuttahttp://en.wikipedia.org/wiki/Indian_Subcontinenthttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Non-resident_Indianhttp://en.wikipedia.org/wiki/Golden_handshakehttp://en.wikipedia.org/wiki/Golden_handshakehttp://en.wikipedia.org/wiki/Forbeshttp://en.wikipedia.org/wiki/Big_four_bankshttp://en.wikipedia.org/wiki/Big_four_bankshttp://en.wikipedia.org/wiki/Big_four_bankshttp://en.wikipedia.org/wiki/ICICI_Bankhttp://en.wikipedia.org/wiki/Punjab_National_Bankhttp://en.wikipedia.org/wiki/Canara_Bankhttp://en.wikipedia.org/wiki/Canara_Bankhttp://en.wikipedia.org/wiki/Punjab_National_Bankhttp://en.wikipedia.org/wiki/ICICI_Bankhttp://en.wikipedia.org/wiki/Big_four_bankshttp://en.wikipedia.org/wiki/Forbeshttp://en.wikipedia.org/wiki/Golden_handshakehttp://en.wikipedia.org/wiki/Golden_handshakehttp://en.wikipedia.org/wiki/Non-resident_Indianhttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Indian_Subcontinenthttp://en.wikipedia.org/wiki/Bank_of_Calcuttahttp://en.wikipedia.org/wiki/Imperial_Bank_of_Indiahttp://en.wikipedia.org/wiki/British_Rajhttp://en.wikipedia.org/wiki/Market_capitalizationhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Financial_servicehttp://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/wiki/Government-owned_corporationhttp://www.londonstockexchange.com/exchange/prices-and-news/stocks/prices-search/stock-prices-search.html?nameCode=SBIDhttp://en.wikipedia.org/wiki/London_Stock_Exchangehttp://www.bseindia.com/stockreach/stockreach.htm?scripcd=500112http://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://en.wikipedia.org/wiki/Hindi_language8/2/2019 Sweety Project
19/62
INTERNATIONAL PRESENCE
State Bank of India (SBI), Mumbai Main Branch.
The bank has 131 overseas offices spread over 32 countries as on 31st Dec 2009. It
has branches of the parent in Colombo,Dhaka, Frankfurt,Hong Kong, Johannesburg,
London and environs, Los Angeles, Male in the Maldives,Muscat, New York,Osaka,
Sydney, and Tokyo. It has offshore banking units in the Bahamas, Bahrain, and
Singapore, and representative offices in Bhutan and Cape Town
SBI operates several foreign subsidiaries or affiliates. In 1990 it established an offshore
bank, State Bank of India (Mauritius).
In 1982, the bank established a subsidiary, State Bank of India (California), which now
has eight branches - seven branches in the state of California and one in Washington
DC that it opened on 23 November 2009. The seven branches in California are located
in Los Angeles, Artesia, San Jose, Canoga Park, Fresno, San Diego and Bakersfield.
The Israeli branch of the "State Bank of India" located in Ramat Gan.
http://en.wikipedia.org/wiki/Colombohttp://en.wikipedia.org/wiki/Dhakahttp://en.wikipedia.org/wiki/Frankfurthttp://en.wikipedia.org/wiki/Hong_Konghttp://en.wikipedia.org/wiki/Johannesburghttp://en.wikipedia.org/wiki/Londonhttp://en.wikipedia.org/wiki/Los_Angeleshttp://en.wikipedia.org/wiki/Malehttp://en.wikipedia.org/wiki/Maldiveshttp://en.wikipedia.org/wiki/Muscat,_Omanhttp://en.wikipedia.org/wiki/New_Yorkhttp://en.wikipedia.org/wiki/Osakahttp://en.wikipedia.org/wiki/Sydneyhttp://en.wikipedia.org/wiki/Tokyohttp://en.wikipedia.org/wiki/Bahamashttp://en.wikipedia.org/wiki/Bahrainhttp://en.wikipedia.org/wiki/Singaporehttp://en.wikipedia.org/wiki/Bhutanhttp://en.wikipedia.org/wiki/Cape_Townhttp://en.wikipedia.org/wiki/Ramat_Ganhttp://en.wikipedia.org/wiki/File:State_Bank_of_India_in_Israel.JPGhttp://en.wikipedia.org/wiki/File:State_Bank_of_India_in_Israel.JPGhttp://en.wikipedia.org/wiki/File:SBImumbai.jpghttp://en.wikipedia.org/wiki/File:SBImumbai.jpghttp://en.wikipedia.org/wiki/File:State_Bank_of_India_in_Israel.JPGhttp://en.wikipedia.org/wiki/File:State_Bank_of_India_in_Israel.JPGhttp://en.wikipedia.org/wiki/File:SBImumbai.jpghttp://en.wikipedia.org/wiki/File:SBImumbai.jpghttp://en.wikipedia.org/wiki/File:State_Bank_of_India_in_Israel.JPGhttp://en.wikipedia.org/wiki/File:State_Bank_of_India_in_Israel.JPGhttp://en.wikipedia.org/wiki/File:SBImumbai.jpghttp://en.wikipedia.org/wiki/File:SBImumbai.jpghttp://en.wikipedia.org/wiki/File:State_Bank_of_India_in_Israel.JPGhttp://en.wikipedia.org/wiki/File:State_Bank_of_India_in_Israel.JPGhttp://en.wikipedia.org/wiki/File:SBImumbai.jpghttp://en.wikipedia.org/wiki/File:SBImumbai.jpghttp://en.wikipedia.org/wiki/Ramat_Ganhttp://en.wikipedia.org/wiki/Cape_Townhttp://en.wikipedia.org/wiki/Bhutanhttp://en.wikipedia.org/wiki/Singaporehttp://en.wikipedia.org/wiki/Bahrainhttp://en.wikipedia.org/wiki/Bahamashttp://en.wikipedia.org/wiki/Tokyohttp://en.wikipedia.org/wiki/Sydneyhttp://en.wikipedia.org/wiki/Osakahttp://en.wikipedia.org/wiki/New_Yorkhttp://en.wikipedia.org/wiki/Muscat,_Omanhttp://en.wikipedia.org/wiki/Maldiveshttp://en.wikipedia.org/wiki/Malehttp://en.wikipedia.org/wiki/Los_Angeleshttp://en.wikipedia.org/wiki/Londonhttp://en.wikipedia.org/wiki/Johannesburghttp://en.wikipedia.org/wiki/Hong_Konghttp://en.wikipedia.org/wiki/Frankfurthttp://en.wikipedia.org/wiki/Dhakahttp://en.wikipedia.org/wiki/Colombo8/2/2019 Sweety Project
20/62
HISTORY
The roots of the State Bank of India rest in the first decade of 19th century, when the
Bank of Calcutta, later renamed the Bank of Bengal, was established on 2 June 1806.
The Bank of Bengal and two other Presidency banks, namely, the Bank of Bombay
(incorporated on 15 April 1840) and the Bank of Madras (incorporated on 1 July 1843).
All three Presidency banks were incorporated as joint stock companies, and were the
result of the royal charters. These three banks received the exclusive right to issue
paper currency in 1861 with the Paper Currency Act, a right they retained until the
formation of the Reserve Bank of India. The Presidency banks amalgamated on 27
January 1921, and the reorganized banking entity took as its name Imperial Bank of
India. The Imperial Bank of India continued to remain a joint stock company.
Pursuant to the provisions of the State Bank of India Act (1955), the Reserve Bank of
India, which is India's central bank, acquired a controlling interest in the Imperial Bank of
India. On 30 April 1955 the Imperial Bank of India became the State Bank of India. The
Govt. of India recently acquired the Reserve Bank of India's stake in SBI so as to
remove any conflict of interest because the RBI is the country's banking regulatory
authority.
Offices of the Bank of Bengal
In 1959 the Government passed the State Bank of India (Subsidiary Banks) Act,
enabling the State Bank of India to take over eight former State-associated banks as its
subsidiaries. On 13 September 2008, State Bank of Saurashtra, one of its Associate
Banks, merged with State Bank of India.
http://en.wikipedia.org/wiki/Bank_of_Calcuttahttp://en.wikipedia.org/wiki/Bank_of_Bengalhttp://en.wikipedia.org/wiki/Bank_of_Bombayhttp://en.wikipedia.org/wiki/Bank_of_Madrashttp://en.wikipedia.org/wiki/Joint_stock_companyhttp://en.wikipedia.org/wiki/Royal_charterhttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Imperial_Bank_of_Indiahttp://en.wikipedia.org/wiki/Imperial_Bank_of_Indiahttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Central_Bankhttp://en.wikipedia.org/wiki/Govt._of_Indiahttp://en.wikipedia.org/wiki/State_Bank_of_Saurashtrahttp://en.wikipedia.org/wiki/File:Bank_of_Bengal.jpghttp://en.wikipedia.org/wiki/State_Bank_of_Saurashtrahttp://en.wikipedia.org/wiki/Govt._of_Indiahttp://en.wikipedia.org/wiki/Central_Bankhttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Imperial_Bank_of_Indiahttp://en.wikipedia.org/wiki/Imperial_Bank_of_Indiahttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Royal_charterhttp://en.wikipedia.org/wiki/Joint_stock_companyhttp://en.wikipedia.org/wiki/Bank_of_Madrashttp://en.wikipedia.org/wiki/Bank_of_Bombayhttp://en.wikipedia.org/wiki/Bank_of_Bengalhttp://en.wikipedia.org/wiki/Bank_of_Calcutta8/2/2019 Sweety Project
21/62
ASSOCIATE BANKS
SBI has five associate banks that with SBI constitute the State Bank Group. All use the
same logo of a blue keyhole and all the associates use the "State Bank of" name
followed by the regional headquarters' name. Originally, the then seven banks that
became the associate banks belonged to princely states until the government
nationalised them between October, 1959 and May, 1960. In tune with the first Five
Year Plan, emphasizing the development of rural India, the government integrated
these banks into State Bank of India to expand its rural outreach. There has been a
proposal to merge all the associate banks into SBI to create a "mega bank" and
streamline operations.
The first step towards unification occurred on 13 August 2008 when State Bank of
Saurashtra merged with State Bank of India, reducing the number of state banks from
seven to six. Then on 19 June 2009 the SBI board approved the merger of its
subsidiary, State Bank of Indore, with itself. SBI holds 98.3% in the bank, and the
balance 1.77% is owned by individuals, who held the shares prior to its takeover by the
government.
The acquisition of State Bank of Indore added 470 branches to SBI's existing network of
12,448 and over 21,000 ATMs. Also, following the acquisition, SBI's total assets will
inch very close to the Rs 10-lakh crore mark. Total assets of SBI and the State Bank of
Indore stood at Rs 998,119 crore as on March 2009. The process of merging of State
Bank of Indore was completed by April 2010.
The subsidiaries of SBI are:
State Bank of Indore State Bank of Bikaner & Jaipur State Bank of Hyderabad State Bank of Mysore State Bank of Patiala State Bank of Travancore
http://en.wikipedia.org/wiki/Indian_Princely_Stateshttp://en.wikipedia.org/wiki/State_Bank_of_Saurashtrahttp://en.wikipedia.org/wiki/State_Bank_of_Saurashtrahttp://en.wikipedia.org/wiki/State_Bank_of_Indorehttp://en.wikipedia.org/wiki/State_Bank_of_Indorehttp://en.wikipedia.org/wiki/State_Bank_of_Indorehttp://en.wikipedia.org/wiki/State_Bank_of_Indorehttp://en.wikipedia.org/wiki/State_Bank_of_Bikaner_%26_Jaipurhttp://en.wikipedia.org/wiki/State_Bank_of_Hyderabadhttp://en.wikipedia.org/wiki/State_Bank_of_Mysorehttp://en.wikipedia.org/wiki/State_Bank_of_Patialahttp://en.wikipedia.org/wiki/State_Bank_of_Travancorehttp://en.wikipedia.org/wiki/State_Bank_of_Travancorehttp://en.wikipedia.org/wiki/State_Bank_of_Travancorehttp://en.wikipedia.org/wiki/State_Bank_of_Patialahttp://en.wikipedia.org/wiki/State_Bank_of_Mysorehttp://en.wikipedia.org/wiki/State_Bank_of_Hyderabadhttp://en.wikipedia.org/wiki/State_Bank_of_Bikaner_%26_Jaipurhttp://en.wikipedia.org/wiki/State_Bank_of_Indorehttp://en.wikipedia.org/wiki/State_Bank_of_Indorehttp://en.wikipedia.org/wiki/State_Bank_of_Indorehttp://en.wikipedia.org/wiki/State_Bank_of_Indorehttp://en.wikipedia.org/wiki/State_Bank_of_Saurashtrahttp://en.wikipedia.org/wiki/State_Bank_of_Saurashtrahttp://en.wikipedia.org/wiki/Indian_Princely_States8/2/2019 Sweety Project
22/62
GROUP COMPANIES:-
SBI Capital Markets Ltd SBI Mutual Fund (A Trust) SBI Factors and Commercial Services Ltd SBI DFHI Ltd SBI Cards and Payment Services Pvt Ltd SBI Life Insurance Company Limited - Bancassurance (Life Insurance) SBI Funds Management Pvt Ltd SBI Canada
BRANCHES OF SBI:-
SBI has 21000 ATMs. SBI has 26500 branches, inclusive of branches that belong to its Associate
banks. SBI alone has 18500 branches. SBI is the only bank consisting 26% participation in public sector banks and 39%
participation in commercial banks in India.
http://en.wikipedia.org/wiki/State_Bank_of_Travancorehttp://en.wikipedia.org/wiki/State_Bank_of_Travancorehttp://en.wikipedia.org/wiki/State_Bank_of_Travancorehttp://en.wikipedia.org/wiki/State_Bank_of_Travancorehttp://en.wikipedia.org/wiki/State_Bank_of_Travancorehttp://en.wikipedia.org/w/index.php?title=SBI_Capital_Markets_Ltd&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=SBI_Mutual_Fund&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=SBI_Factors_and_Commercial_Services_Ltd&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=SBI_DFHI_Ltd&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=SBI_Cards_and_Payment_Services_Pvt_Ltd&action=edit&redlink=1http://en.wikipedia.org/wiki/SBI_Life_Insurance_Company_Limitedhttp://en.wikipedia.org/wiki/Bancassurancehttp://en.wikipedia.org/w/index.php?title=SBI_Funds_Management_Pvt_Ltd&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=SBI_Canada&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=SBI_Canada&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=SBI_Funds_Management_Pvt_Ltd&action=edit&redlink=1http://en.wikipedia.org/wiki/Bancassurancehttp://en.wikipedia.org/wiki/SBI_Life_Insurance_Company_Limitedhttp://en.wikipedia.org/w/index.php?title=SBI_Cards_and_Payment_Services_Pvt_Ltd&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=SBI_DFHI_Ltd&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=SBI_Factors_and_Commercial_Services_Ltd&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=SBI_Mutual_Fund&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=SBI_Capital_Markets_Ltd&action=edit&redlink=18/2/2019 Sweety Project
23/62
OBJECTIVE OF THE STUDY
To analyse and design the workflows and processes within and between the
organization.
To determine the efficiency and effectiveness of various BPR initiatives in State
Bank of India.
To examine the customers expectations.
To study about the enhancement of customer service quality.
To understand the various contribution of I.T in SBI.
To study about redesigning the process as a whole in order to achieve the
greatest possible benefits to the Bank and their customers.
To understand and examine the new technologies that are being used by
competitors.
8/2/2019 Sweety Project
24/62
RESEARCH METHODOLOGY
Research methodology is a systematic way, which consists of series of actions or steps
necessary to effectively carry out research and the desired sequencing of these steps.
The research is a process of involves a number of interrelated activities, which overlap
and do rigidly follow a particular sequence. It consists of the following steps:
Formulating the objective of the study.
Designing the methods of data collection.
Selecting the sample plan.
Collecting the data.
Processing and analyzing the data.
Reporting the findings.
RESEARCH OBJECTIVES:
To study about the contribution of Business Process Re-engineering in state bank of
India.
RESEARCH DESIGN
Research design specifies the methods and procedures for conducting a particular
study. A Research design is the arrangement of conditions for collection and analysis of
8/2/2019 Sweety Project
25/62
the data in a manner that aims to combine relevance to the research purpose with
economy in procedure. Research Design is broadly classified into three types as:
Exploratory Research Design
Descriptive Research Design Hypothesis testing Research Design
On the basis of the objective of the study, the study which is concerned with describing
the characteristics of a particular individual or of group of individual under study comes
under Descriptive Research Design.
DESCRIPTIVE RESEARCH DESIGN:-
In this research design the objective of study is clearly defined and has accurate
method of measurement with a clear-cut definition of population that is to be studied.
The Research Design used in this study is descriptive which includes interviewers, andunit fact- findings enquiries with the employees.
8/2/2019 Sweety Project
26/62
COLLECTION OF DATA
The procedure for collection of data depends upon various considerations, availability of
resources like money, time, manpower etc also affects the choice of procedure.
PRIMARY DATA
SECONDARY DATA
Secondary data mean that are already available that is they refer the data which have
already been collected and analyzed by some one else when the researcher utilizes
secondary data that has to look into various sources where he can obtain. In this case
he certainly not confronted with the problems that are usually data nor unpublished data
associated with the collection of original data secondary data may either be published.
TOOLS OF ANALYSIS:
Analysis may be categorized as descriptive analysis and (inferential analysis is often
known as statistical analysis).
DESCRIPTIVE ANALYSIS:-
Descriptive analysis is largely the study of distribution of one variable this study provide
us profile of companies, workgroups and person and other subject on any of a multitudeof characteristics such as size composition.
8/2/2019 Sweety Project
27/62
Data collection method: The report will be prepared mainly using secondary data via,
SECONDARY DATA:
www.sbi.com
Company manuals
Commercial Banks Book
The techniques, which would be used for the study:
1. Discussions with bank guide and customers.
2. By studying projects reports.
3. Using Project Techniques.
LIMITATION OF THE STUDY
In my view the study of the BPR IN SBI has certain limitation, because i just spent only
8 weeks in SBI. And whatever information during that short period I could gather, I
worked upon that. Thus the study does not present an overall view of the assessment ofBPR at SBI.
http://www.sbi.com/http://www.sbi.com/8/2/2019 Sweety Project
28/62
BUSINESS PROCESS REENGINEERING
Business process reengineering is one approach for redesigning the way work is done
to better support the organization's mission and reduce costs. Reengineering starts with
a high-level assessment of the organization's mission, strategic goals, and customer
needs. Basic questions are asked, such as "Does our mission need to be redefined?
Are our strategic goals aligned with our mission? Who are our customers?" An
organization may find that it is operating on questionable assumptions, particularly in
terms of the wants and needs of its customers. Only after the organization rethinks what
it should be doing, does it go on to decide how best to do it.
Business process reengineering (BPR) began as a private sector technique to helporganizations fundamentally rethink how they do their work in order to dramatically
improve customer service, cut operational costs, and become world-class competitors.
A key stimulus for reengineering has been the continuing development and deployment
of sophisticated information systems and networks. Leading organizations are
becoming bolder in using this technology to support innovative business processes,
rather than refining current ways of doing work.
Reengineering guidance and relationship of Mission and Work Processes toInformation Technology
http://en.wikipedia.org/wiki/Mission_statementhttp://en.wikipedia.org/wiki/Costhttp://en.wikipedia.org/w/index.php?title=Customer_needs&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Customer_needs&action=edit&redlink=1http://en.wikipedia.org/wiki/Organizationhttp://en.wikipedia.org/wiki/Customer_servicehttp://en.wikipedia.org/w/index.php?title=Operational_cost&action=edit&redlink=1http://en.wikipedia.org/wiki/Competitorhttp://en.wikipedia.org/wiki/Information_systemhttp://en.wikipedia.org/wiki/Computer_networkhttp://en.wikipedia.org/wiki/File:Reengineering_guidence.jpghttp://en.wikipedia.org/wiki/Computer_networkhttp://en.wikipedia.org/wiki/Information_systemhttp://en.wikipedia.org/wiki/Competitorhttp://en.wikipedia.org/w/index.php?title=Operational_cost&action=edit&redlink=1http://en.wikipedia.org/wiki/Customer_servicehttp://en.wikipedia.org/wiki/Organizationhttp://en.wikipedia.org/w/index.php?title=Customer_needs&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Customer_needs&action=edit&redlink=1http://en.wikipedia.org/wiki/Costhttp://en.wikipedia.org/wiki/Mission_statement8/2/2019 Sweety Project
29/62
"Business Process Reengineering, although a close relative, seeks radical rather than
merely continuous improvement. It escalates the efforts of JIT and TQM to make
process orientation a strategic tool and a core competence of the organization. BPR
concentrates on core business processes, and uses the specific techniques within the
JIT and TQM toolboxes as enablers, while broadening the process vision."
Within the framework of this basic assessment of mission and goals, reengineering
focuses on the organization's business processesthe steps and procedures that
govern how resources are used to create products and services that meet the needs of
particular customers or markets. As a structured ordering of work steps across time and
place, a business process can be decomposed into specific activities, measured,
modeled, and improved. It can also be completely redesigned or eliminated altogether.
Reengineering identifies, analyzes, and redesigns an organization's core business
processes with the aim of achieving dramatic improvements in critical performancemeasures, such as cost, quality, service, and speed.
Reengineering recognizes that an organization's business processes are usually
fragmented into subprocesses and tasks that are carried out by several specialized
functional areas within the organization. Often, no one is responsible for the overall
performance of the entire process. Reengineering maintains that optimizing the
performance of subprocesses can result in some benefits, but cannot yield dramatic
improvements if the process itself is fundamentally inefficient and outmoded. For thatreason, reengineering focuses on redesigning the process as a whole in order to
achieve the greatest possible benefits to the organization and their customers. This
drive for realizing dramatic improvements by fundamentally rethinking how the
organization's work should be done distinguishes reengineering from process
improvement efforts that focus on functional or incremental improvement.
http://en.wikipedia.org/wiki/Frameworkhttp://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Service_(economics)http://en.wikipedia.org/wiki/Customerhttp://en.wikipedia.org/wiki/Markethttp://en.wikipedia.org/wiki/Business_processhttp://en.wikipedia.org/wiki/Business_processhttp://en.wikipedia.org/wiki/Markethttp://en.wikipedia.org/wiki/Customerhttp://en.wikipedia.org/wiki/Service_(economics)http://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Framework8/2/2019 Sweety Project
30/62
HISTORY
In 1990, Michael Hammer, a former professor of computer science at theMassachusetts Institute of Technology (MIT), published an article in the HarvardBusiness Review, in which he claimed that the major challenge for managers is toobliterate non-value adding work, rather than using technology for automating it.[2]Thisstatement implicitly accused managers of having focused on the wrong issues, namelythat technology in general, and more specifically information technology, has been usedprimarily for automating existing processes rather than using it as an enabler for makingnon-value adding work obsolete.
Hammer's claim was simple: Most of the work being done does not add any value forcustomers, and this work should be removed, not accelerated through automation.Instead, companies should reconsider their processes in order to maximize customervalue, while minimizing the consumption of resources required for delivering theirproduct or service. A similar idea was advocated by Thomas H. Davenport and J. Shortin 1990[3], at that time a member of the Ernst & Young research center, in a paperpublished in the Sloan Management Review the same year as Hammer published hispaper.
This idea, to unbiasedly review a companysbusiness processes, was rapidly adoptedby a huge number of firms, which were striving for renewed competitiveness, which theyhad lost due to the market entrance of foreign competitors, their inability to satisfycustomer needs, and their insufficient cost structure [citation needed]. Even well establishedmanagement thinkers, such as Peter Drucker and Tom Peters, were accepting andadvocating BPR as a new tool for (re-)achieving success in a dynamic world [citation needed].During the following years, a fast growing number of publications, books as well as
journal articles, were dedicated to BPR, and many consulting firms embarked on thistrend and developed BPR methods. However, the critics were fast to claim that BPRwas a way to dehumanize the work place, increase managerial control, and to justifydownsizing, i.e. major reductions of the work force[4], and a rebirth of Taylorism under adifferent label.
Despite this critique, reengineering was adopted at an accelerating pace and by 1993,as many as 65% of the Fortune 500 companies claimed to either have initiatedreengineering efforts, or to have plans to do so [citation needed]. This trend was fueled by the
fast adoption of BPR by the consulting industry, but also by the study Made inAmerica[citation needed], conducted by MIT, that showed how companies in many USindustries had lagged behind their foreign counterparts in terms of competitiveness,time-to-market and productivity.
http://en.wikipedia.org/wiki/Michael_Hammerhttp://en.wikipedia.org/wiki/Massachusetts_Institute_of_Technologyhttp://en.wikipedia.org/wiki/Harvard_Business_Reviewhttp://en.wikipedia.org/wiki/Harvard_Business_Reviewhttp://en.wikipedia.org/wiki/Harvard_Business_Reviewhttp://en.wikipedia.org/wiki/Business_process_reengineering#cite_note-1http://en.wikipedia.org/wiki/Business_process_reengineering#cite_note-1http://en.wikipedia.org/wiki/Business_process_reengineering#cite_note-1http://en.wikipedia.org/wiki/Thomas_H._Davenporthttp://en.wikipedia.org/wiki/Business_process_reengineering#cite_note-2http://en.wikipedia.org/wiki/Business_process_reengineering#cite_note-2http://en.wikipedia.org/wiki/Ernst_%26_Younghttp://en.wikipedia.org/wiki/Sloan_Management_Reviewhttp://en.wikipedia.org/wiki/Sloan_Management_Reviewhttp://en.wikipedia.org/wiki/Business_processhttp://en.wikipedia.org/wiki/Business_processhttp://en.wikipedia.org/wiki/Competitivenesshttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Peter_Druckerhttp://en.wikipedia.org/wiki/Tom_Petershttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Downsizinghttp://en.wikipedia.org/wiki/Business_process_reengineering#cite_note-3http://en.wikipedia.org/wiki/Business_process_reengineering#cite_note-3http://en.wikipedia.org/wiki/Business_process_reengineering#cite_note-3http://en.wikipedia.org/wiki/Taylorismhttp://en.wikipedia.org/wiki/Fortune_500http://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Time-to-markethttp://en.wikipedia.org/wiki/Productivityhttp://en.wikipedia.org/wiki/Productivityhttp://en.wikipedia.org/wiki/Time-to-markethttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Fortune_500http://en.wikipedia.org/wiki/Taylorismhttp://en.wikipedia.org/wiki/Business_process_reengineering#cite_note-3http://en.wikipedia.org/wiki/Downsizinghttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Tom_Petershttp://en.wikipedia.org/wiki/Peter_Druckerhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Competitivenesshttp://en.wikipedia.org/wiki/Business_processhttp://en.wikipedia.org/wiki/Sloan_Management_Reviewhttp://en.wikipedia.org/wiki/Ernst_%26_Younghttp://en.wikipedia.org/wiki/Business_process_reengineering#cite_note-2http://en.wikipedia.org/wiki/Thomas_H._Davenporthttp://en.wikipedia.org/wiki/Business_process_reengineering#cite_note-1http://en.wikipedia.org/wiki/Harvard_Business_Reviewhttp://en.wikipedia.org/wiki/Harvard_Business_Reviewhttp://en.wikipedia.org/wiki/Massachusetts_Institute_of_Technologyhttp://en.wikipedia.org/wiki/Michael_Hammer8/2/2019 Sweety Project
31/62
DEVELOPMENT AFTER 1995
With the publication of critiques in 1995 and 1996 by some of the early BPRproponents, coupled with abuses and misuses of the concept by others, thereengineering fervor in the U.S. began to wane. Since then, considering businessprocesses as a starting point for business analysis and redesign has become a widelyaccepted approach and is a standard part of the change methodology portfolio, but istypically performed in a less radical way as originally proposed.
More recently, the concept of Business Process Management (BPM) has gained majorattention in the corporate world and can be considered as a successor to the BPR waveof the 1990s, as it is evenly driven by a striving for process efficiency supported byinformation technology. Equivalently to the critique brought forward against BPR, BPMis now accused of focusing on technology and disregarding the people aspects of
change.
http://en.wikipedia.org/wiki/Business_Process_Managementhttp://en.wikipedia.org/wiki/Business_Process_Management8/2/2019 Sweety Project
32/62
THE ROLE OF INFORMATION TECHNOLOGY
Information technology (IT) has historically played an important role in the reengineeringconcept.It is considered by some as a major enabler for new forms of working andcollaborating within an organization and across organizational borders.
Early BPR literature identified several so called disruptive technologies that weresupposed to challenge traditional wisdom about how work should be performed.
Shared databases, making information available at many places Expert systems, allowing generalists to perform specialist tasks Telecommunication networks, allowing organizations to be centralized and
decentralized at the same time Decision-support tools, allowing decision-making to be a part of everybody's job Wireless data communication and portable computers, allowing field personnel to
work office independent Interactive videodisk, to get in immediate contact with potential buyers Automatic identification and tracking, allowing things to tell where they are,
instead of requiring to be found High performance computing, allowing on-the-fly planning and revisioning
In the mid 1990s, especially workflow management systems were considered as asignificant contributor to improved process efficiency. Also ERP (Enterprise ResourcePlanning) vendors, such as SAP, JD Edwards, Oracle, PeopleSoft, positioned theirsolutions as vehicles for business process redesign and improvement.
http://en.wikipedia.org/wiki/Wireless_data_communicationhttp://en.wikipedia.org/wiki/Portable_computerhttp://en.wikipedia.org/wiki/Enterprise_Resource_Planninghttp://en.wikipedia.org/wiki/Enterprise_Resource_Planninghttp://en.wikipedia.org/wiki/SAP_AGhttp://en.wikipedia.org/wiki/SAP_AGhttp://en.wikipedia.org/wiki/Enterprise_Resource_Planninghttp://en.wikipedia.org/wiki/Enterprise_Resource_Planninghttp://en.wikipedia.org/wiki/Portable_computerhttp://en.wikipedia.org/wiki/Wireless_data_communication8/2/2019 Sweety Project
33/62
RESEARCH AND METHODOLOGY
Although the labels and steps differ slightly, the early methodologies that were rooted inIT-centric BPR solutions share many of the same basic principles and elements. Thefollowing outline is one such model, based on the PRLC (Process Reengineering LifeCycle) approach developed by Guha.
Simplified schematic outline of using a business process approach, examplified forpharmceutical R&D:1. Structural organization with functional units2. Introduction of New Product Development as cross-functional process3. Re-structuring and streamlining activities, removal of non-value adding tasks
Benefiting from lessons learned from the early adopters, some BPR practitionersadvocated a change in emphasis to a customer-centric, as opposed to an IT-centric,methodology. One such methodology, that also incorporated a Risk and ImpactAssessment to account for the impact that BPR can have on jobs and operations, wasdescribed by Lon Roberts (1994).Roberts also stressed the use of change managementtools to proactively address resistance to changea factor linked to the demise of manyreengineering initiatives that looked good on the drawing board.
Some items to use on a process analysis checklist are: Reduce handoffs, Centralizedata, Reduce delays, Free resources faster, Combine similar activities. Also within themanagement consulting industry, a significant number of methodological approacheshave been developed.
CRITIQUE
Reengineering has earned a bad reputation because such projects have often resultedin massive layoffs.This reputation is not altogether unwarranted, since companies haveoften downsized under the banner of reengineering. Further, reengineering has notalways lived up to its expectations. The main reasons seem to be that:
8/2/2019 Sweety Project
34/62
Reengineering assumes that the factor that limits an organization's performanceis the ineffectiveness of its processes (which may or may not be true) and offersno means of validating that assumption.
Reengineering assumes the need to start the process of performanceimprovement with a "clean slate," i.e. totally disregard thestatus quo.
According to Eliyahu M. Goldratt (and his Theory of Constraints) reengineeringdoes not provide an effective way to focus improvement efforts on theorganization's constraint
.
Abrahamson (1996) showed that fashionable management terms tend to follow alifecycle, which for Reengineering peaked between 1993 and 1996 (Ponzi and Koenig2002). They argue that Reengineering was in fact nothing new (as e.g. when HenryFord implemented the assembly line in 1908, he was in fact reengineering, radicallychanging the way of thinking in an organization). Dubois (2002) highlights the value of
signaling terms as Reengineering, giving it a name, and stimulating it. At the same therecan be a danger in usage of such fashionable concepts as mere ammunition toimplement particular reform. Read Article by Faraz Rafique. The most frequent andharsh critique against BPR concerns the strict focus on efficiency and technology andthe disregard of people in the organization that is subjected to a reengineering initiative.Very often, the label BPR was used for major workforce reductions.
Michael Hammer similarly admitted that:
"I wasn't smart enough about that. I was reflecting my engineering background and wasinsufficient appreciative of the human dimension. I've learned that's critical."
Other criticism brought forward against the BPR concept include:
It never changed management thinking, actually the largest causes of failure inan organization
lack of management support for the initiative and thus poor acceptance in theorganization.
exaggerated expectations regarding the potential benefits from a BPR initiativeand consequently failure to achieve the expected results.
Underestimation of the resistance to change within the organization. Implementation of generic so-called best-practice processes that do not fitspecific company needs.
over trust in technology solutions. Performing BPR as a one-off project with limited strategy alignment and long-
term perspective. Poor project management.
http://en.wikipedia.org/wiki/Status_quohttp://en.wikipedia.org/wiki/Status_quohttp://en.wikipedia.org/wiki/Eliyahu_M._Goldratthttp://en.wikipedia.org/wiki/Theory_of_Constraintshttp://en.wikipedia.org/wiki/Theory_of_Constraintshttp://en.wikipedia.org/wiki/Eliyahu_M._Goldratthttp://en.wikipedia.org/wiki/Status_quo8/2/2019 Sweety Project
35/62
BUSINESS PROCESS RE-ENGINEERING(BPR)A NEW SBI
Inspite of SBI's dominant position in the Indian Banking scenario, globalisation and
deregulation in the banking industry have led to severe competition. Further in the
backdrop of changing tools of business and growing customer expectations, only those
organisations will remain ahead in business that meet international standards in every
respect. In the aforesaid background, a BPR team has been constituted at the
Corporate Centre for Business Process Reengineering with McKinsey & Company as
consultants. The objectives for the Project include increasing customer satisfaction andconvenience, freeing up time for Branch Manager and Branch Staff to focus on sales
and marketing and simplifying process for employees. To meet these objectives, new
processes and supporting organisational structures are being defined. It will lead to
major changes.
The basic goal of the BPR Project is to create an operating architecture that allows us todeliver world-class services in the face of severe competition. Various aspects of the
Project can be summarised under the following seven heads:-
A. BRANCH REDESIGN:
The objective is to redesign our branches to be leaner and sales and marketing
focussed units. This can be achieved through migration of back office processing to
Centralised Processing Centres and moving common transactions/enquiries to
alternate! Channels (ATM, Call Centres etc.) As a result operating units within a branch
will undergo a change as will the layout of the branches themselves. As SBI caters to a
8/2/2019 Sweety Project
36/62
large spectrum of customer segments, a range of branch types will be designed to
efficiently cater to different segments of customers.
The focus of the branch will be on sales, marketing and customer service..Account-
keeping, transaction processing, documentation/records-keeping, reconciliation etc are
only back up activities even though these are essential activities..The focus of a branch
should be on customer acquisition and customer retention through customer delight
B. CENTRAL PROCESSING CENTRES:
With the back office operations or a large part thereof moving into CPCs, different CPCs
will be designed to effectively carry out various processes such as processing liability
accounts, trade finance processing etc. The objective of creating a CPC is to increase
process efficiencies, pool skills, reduce transaction costs and improve turn-around--
times. The Project implementation team will decide on the appropriate level at which the
CPCs would be centralised.
CPCs are proposed to be set up at selected centres. CPCs will do the processing work
for the branches. Cash management and cash supply to branches, documentation and
stationery etc, CPCs for various activities such as loan processing/sanction, currency
administration etc have been set up at many centres.
C. ALTERNATIVE CHANNELS:
Aggressive introduction of alternate channels will offer a low cost channel to serve mass
market including less profitable customers in a cost effective manner. Besides, in
8/2/2019 Sweety Project
37/62
addition to enabling the Bank to meet the competitive offerings of progressive banks
appealing to the tech-savvy mass-affluent/affluent segments, it will help free up the time
of Branch staff to attend to sales and marketing. Based on the recommendations of the
BPR team, the Bank has already identified and launched initiatives to improve the
working of ATMs and increase the migration of customers to ATMs. The BPR team will
also layout the design of a full-fledged Call Centre for the Bank and other alternate
channels that might be appropriate for SBI to consider.
Call centres are to be set up so that direct marketing, query handling, product
promotion, PR through customer contact at significant times for the customers etc, will
be possible. To start with, a contact centre at Bangalore has recently been set up to
cater to the needs of customers of Bangalore and Hyderabad circle.
D. DATABASE MARKETING:
In present context, only those will get good business who identify sales and marketing
opportunities and reach out to the customers. To this end a number of initiatives are
proposed. These include segmentation of existing customers for getting incremental
business and cross selling other products, concept of relationship manager for high
value business in personal segments as well and setting up of call centres and out
bound sales force to target new customers for high value business and identified thrust
areas. Large and mid corporates, Government business and Trade finance customers
will have to be pursued relentlessly on the basis of a structure which will use database
marketing as an effective tool. Database marketing can help us in increasing revenues
from cross-selling, lower cost on customer acquisition and also increased customer
loyalty.
8/2/2019 Sweety Project
38/62
The availability of centralised data will enable us to segment the customers and market
our products to identified sub-segmented customers. Call centres and field sales staff
will be used for marketing.
E. CORE PROCESS DESIGN:
The introduction of core banking solution and installation of SBI connect will enhance
the IT platform on which products and services are delivered to customers.the entire
processes in the bank need to be redesigned so as to take maximum advantage of IT.
In order to support the new architecture of sales focussed branches, alternate channels
and central processing centres, many core processes will have to be redesigned. In
course of this, efforts will be made to eliminate redundancies and bottlenecks thus
improving the turn around time and reducing transaction cost.
F. PERFORMANCE MANAGEMENT:-
Proper performance management will be the key to any success. The new operating
architecture will also create many new roles and their performance evaluation will be a
new area for us. We not only need to identify specific key performance indicators for
various roles but also create a system for their effective tracking.
8/2/2019 Sweety Project
39/62
G. ORGANISATIONAL RE-DESIGN:-
With new operating outfits like CPCs and Call Centres and the focus on sales and
marketing through dedicated sales force, the organisation itself would require suitable
changes. A new concept of Micro Market Manager for 7-10 branches in an identified
geographical area for business development is one of the ideas under examination. The
need for a renewed thrust in the mid corporate segment and re-evaluation of efficacy of
the CNW is also under examination.
The BPR project began in June 2003 and is on track progressing well. We expect pilot
testing to commence in identified cities along with the Core Banking solution some time
in July 2004 and based on the above the finalisation of new procedures and structure
will be made. Thereafter preparation for the national roll out will follow.
The path of Business Process Re-engineering is not without challenges. Attitudinal
changes, new performance culture, sales orientation, specialisation, movement of staff,
re-skilling and training and performance tracking are going to be some of the major
challenges. Change management will be critical for success. The success of the project
will be judged by increase in market share and improvement in cost income ratio. The
imperatives for success will include ownership of the Project and commitment and
determination at all levels. The Project is aimed at significantly enhancing SBI?s
competitiveness in the market, increasing our profitability through higher market share
and improved process efficiency and greater customer satisfaction. It is also aimed at
fulfilling our aspiration of becoming a world class Bank.
8/2/2019 Sweety Project
40/62
BPR INITIATIVES
List A contains major BPR initiatives already rolled out; List B and List C are in different
stages of implementation at different centres.
INITIATIVES ROLLED OUT-LIST A
A. GRAHAK MITRA/ATM DOST:
Grahak mitra, a clerical staff is stationed in customer area in branch and his role
includes welcoming them to appropriate counters, help them in their transactions
and with forms and literature, as required, including alternative delivery channels
like issuance of ATM card etc.
GM has been introduced to project a positive image of the bank. GM is
considered necessary to help the walk-in customers to get personal attention,
ensure response for their basic enquiries, facilitate migration to alternate
channels and increased focus in cross selling.
OBJECTIVE:
Attain higher level of customer satisfaction and further aim to achieve
customer delight.
Increase sales focus by making available product brochures after initial
sharing of product information and directing them to the staff concerned.
8/2/2019 Sweety Project
41/62
Ensure migration to automated alternate channels- ATM, Cheque Drop
Box and Internet Banking with a view to reduce transaction costs.
B. ATM Migration:
This initiative is aimed at migrating customers to ATM. At selected branches,
customers who do cash transactions on SWO but do not have ATM cards are
identified. Their cards are prepared and kept at branches along with PINs.
Whenever such customers go to SWO next time, the system alerts about the
ATM cards being available. Such customers are given ATM cards/PINs and
explained how to use ATM. Besides, channel managers are appointed at ground
level to manage ATMs.
C. MIGRATION TO DROP BOXES:
Concept of Drop Boxes for cheque deposit was already in the bank but migration
to them has not been generally successful. A new drop box has been designed
for a concerted effort to migrate customers successfully.
Drop Box will assume importance in the new operating architecture when back
office processes in clearing and collection will be shifted away from branches and
centralized in processing centers.DB would be treated as an alternate channel in
the new operating architecture.
8/2/2019 Sweety Project
42/62
DB is planned to evolve as a Branded Service Product. The branches will use a
standard box. The box will have three colour - coded components one each
for(a)local clearing instruments (b)on branch instruments and (c)outstation
instruments. The box will, however, not be used for credit cards payments,
instruments with government challan and those intended for negotiation and
immediate credit.
DB is expected to be located at a vantage point and be accessible to public 24x7
hours in case the proposed DB cannot be made available for 24x7 hours for
security reasons, a different type of box with a single slit should be embedded in
a wall to take care of security arrangements.
After introduction of standard DB, the acceptance of instruments across
counter/SWO will be discontinued after displaying proper notice. RBI instruction
on the subject have been taken into account while finalizing the procedures.
DROP BOX FACILITY- REVISED INSTRUCTIONS:
Drop Boxes should be cleared well before commencement of the days work, toinclude instruments for high value and MICR clearing/clearing house and
thereafter at intervals as warranted by local requirement but at least every hour.
After every clearance of the drop box, the designated official will record in a
register, under his initials, the date of clearance, time of clearance, total no of on
branch instruments, clearing instruments and total no of outstation instruments.
D. RETAIL ASSESTS CENTRAL PROCESSING CELL(RACPC):
It covers three kinds of P segment loans viz housing, education and car loans.
The loan application will be canvassed by the identified branches and forwarded
to RACPC. KYC responsibility is that of the branch. The loan application will be
8/2/2019 Sweety Project
43/62
processed and sanctioned at RACPC. Pre-sanction visit and legal and valuation
reports, as required, will be the responsibility of RACPC. Tie-up arrangements for
legal opinion and valuation reports are being made. Post sanction follow up and
recovery will be the responsibity of the branch.
RACPC will initially cover the following processes in respect of the above
Category of products:
Appraisal of all loan accounts
Sanctioning of all loan accounts
Obtaining a search report and valuation report centrally
Generation of documents duly filled in through a software called DREAM
HOME
Consequent upon establishment of RACPC, the activities at the branch
relating to the handling of applications, issue of in-principle eligibility letter,
recovery of processing charges towards legal opinion, valuation report etc
will be done by RACPC.
ADVANTAGES OF RACPC:
Customer gets in-principle eligibility letter quickly enabling the bank to lock in
the customer.
Dramatic improvement in the turnaround time.
Legal opinion and valuation report arranged by RACPC.
Dream home software reduces appraisal and documentation time.
RACPC will be able to answer challenges posed by our competitors.
In the end state, RACPC would ensure documentation, PDC
maintenance and recovery process through specialized recovery cell.
8/2/2019 Sweety Project
44/62
E. SMALL ENTERPRISE CREDIT CELL(SECC):
A small enterprises credit cell (SECC) has been set up, by creating a pool of
skilled staff which is focused exclusively on the SME sector. The benefits ofSECC would be:
Quicker Turn Around Time
Uniform applicability of the credit norms in the appraisal, sanction and
documentation to ensure good quality credit.
Branches will get time to focus on marketing of new business.
SECC STRUCTURE AND FLOW OF CREDIT:
The cell would be headed by an AGM with three credit officers a
Recommended