Sbi Organisational Report

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1.3 Core competencies

- Huge network of branches and ATMs

- Personalized customer service

- 24x7 banking through various types of channels

- Fast product launch and customer relationship management

- Reliability and trust instilled in the customers mind

1.4 Corporate governance

State bank of India states that they are dedicated to follow the best corporate governance practices in the industry. They believe that corporate governance plays an important role in successful management of the business because it helps them to stay true to their ethical values and enhance the stakeholder value.

The main objective of their corporate governance policy is to preserve the value of all of its stakeholders, communicate important information to all the concerned parties and maintain a certain level of customer service and performance.

The policy makes sure that the top leadership regularly provide important insights in the business and audits its performance. It tries to create an environment of transparency and accountability for various processes of management. It also ensures that the board of directors are provided with all the necessary means and information to accomplish their responsibilities successfully.

1.5 Organizational structure

The management of SBI consists of Central Board of Directors which comprises of the following:

- A Chairman and a Vice Chairman

- Six director elected by the shareholders

- Eight directors and two Managing Directors to be elected by the Central Government of India post discussion with RBI

- Directors nominated by the Central Government and the RBI

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1.6 Organizational workforce

SBI is one of the biggest public sector banks in the country and employees around 3 lac people across the country with a decent gender diversity ratio. The processing and payment of salaries of these employees is processed at a central platform and the firm has recently introduced automation of PF services and terminal services for the employees to facilitate fast paced payments.

1.7 Subsidiaries of SBI

The SBI has five Associate Banks, namely:

- State Bank of Patiala (SBP)

- State Bank of Bikaner and Jaipur (SBBJ)

- State Bank of Travancore (SBT)

- State Bank of Mysore (SBM)

- State Bank of Hyderabad (SBH)

Foreign subsidiaries are:

- State Bank of India (Botswana) Ltd (SBIBL)

- Bank SBI Indonesia (BSBII)

- Bank of Bhutan Limited (BoBL)

- Commercial Indo Bank LLC (CCIBL)(Erstwhile Commercial Bank Of India LLC)

- SBI Funds Management Pvt Ltd (SBI FUNDS)

- SBI DFHI Ltd (SBI DFHI)

- SBI Global Factors Ltd.

- State Bank of India (California) (SBICAL)

- SBI (Mauritius) LTD (SBIML)

- Nepal SBI Bank Limited (NSBL)

- State Bank of India (Canada) (SBICAN)

(Banking Subsidiaries - SBI Corporate Website, n.d.)

2. Organizational challenges

2.1 Competitive Environment

State bank of India (SBI) is the largest commercial bank in terms of assets, deposits, profits, branches, customers and employees. SBI has various competitors in banking sector like ICICI Bank, HDFC Bank, Punjab National Bank and Axis Bank. However in terms of average market share, SBI is by far the largest player in the market. (State Bank of India Fact - Equitymaster, n.d.)

(Rs. In Crores)

SBI

ICICI

HDFC

PNB

Market Cap

206,839.19

158,325.78

330,128.78

29,227.64

Net Interest Income

163,685.31

52,739.43

60,221.45

47,424.35

Net Profit

9,950.65

9726.29

12,296.23

-3,974.39

Total Assets

2,259,036.05

720,695.10

708,845.57

667,390.45

(State Bank of India Competition, n.d.)

2.2 Merger of Associate Bank

SBI is facing challenge of merger with its five associate banks namely: 1) State Bank of Bikaner and Jaipur 2) State Bank of Hyderabad 3) State Bank of Mysore 4) State Bank of Travancore 5) State Bank of Patiala along with state run Bharatiya Mahila Bank. This merger will increase the network and reach of SBI. The proposed merger will make SBI assets base of almost 37 lakh Crore, with 22500 Branches and 58000 ATMs. (SBI merges with 5 associates: The Financial Express, n.d.) (Five associate banks to merge with SBI - The Hindu, n.d.)

As of March 2016, SBI has 90% stakes in State Bank of Mysore, 79.09% stakes in State Bank of Travancore, 75.07% in State Bank of Bikaner and Jaipur and 100% stakes in State