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    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

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    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

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    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

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    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

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    Contribution of IT in SBI

    CHAPTER 6 : CONCLUSION

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    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_intermediary
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    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)
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    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/Mail
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    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/Banknotes
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    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_India
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    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_War
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    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_India
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    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_Rao
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    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_entity
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    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_equity
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    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.

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    Organizational Structure

    As of April 1, 2010

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    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_language
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    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/Colombo
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    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_Calcutta
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    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_States
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    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=1
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    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.

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    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

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    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.

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    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.

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    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/
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    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_statement
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    "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/Framework
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    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_Hammer
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    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_Management
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    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.

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    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:

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    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_quo
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    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

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    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

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    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.

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    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.

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    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.

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    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.

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    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.

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    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

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    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.

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    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