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HR POLICIES & PRACTICES

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TABLE OF CONTENTS
LIST OF TABLES
LIST OF FIGURES
CHAPTER

INTRODUCTION
1.1 INTRODUCTION AND IMPORTANCE
1.2 HUMAN RESOURCES DEVELOPMENT
1.3 MODERN CONCEPT OF HUMAN RESOURCES
1.4 HR POLICIES AND PROCEDURES

REVIEW OF LITERATURE
2.1 CONCEPT AND THEORY
2.2 INDUSTRY PROFILE
2.3 COMPANY PROFILE

RESEARCH METHODOLOGY AND DESIGN


3.1 STATEMENT OF THE PROBLEM
3.2 NEED FOR STUDY
3.3 OBJECTIVES OF STUDY
3.4 ANALYTICAL TOOLS
3.5 SCOPE OF STUDY
3.6 LIMITATIONS

DATA ANALYSIS AND INTERPRETATION


4.1 PERSONAL DATA
4.2 AWARENESS

SUMMARY OF FINDINGS AND SUGGESTIONS


5.1 FINDINGS
5.2 SUGGESTIONS
5.3 CONCLUSION

BIBLIOGRAPHY
APPENDIX

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HR POLICIES & PRACTICES

1.1 INTRODUCTION
The role of Human Resources is changing as fast as technology and the global marketplace.
Historically, the HR Department was viewed as administration, kept personal files and other
records, managed the hiring process, and provided other administrative support to the
business. Those times have changed.
The positive result of these changes is that HR professionals have the opportunity to play a
more strategic role in the business. The challenge for HR managers is to keep up to date with
the latest HR innovationstechnological, legal, and otherwise.
This special report will discuss the best practices in HR management for 2010in other
words, how HR managers can anticipate and address some of the most challenging HR issues
this year. This report will give you the information you need to know about these current HR
challenges and how to most effectively manage them in your workplace.
Human resources is an increasingly broadening term with which an organization, or other
human system describes the combination of traditionally administrative personnel functions
with acquisition and application of skills, knowledge and experience, Employee Relations
and resource planning at various levels. The field draws upon concepts developed in
Industrial/Organizational Psychology and System Theory. Human resources has at least two
related interpretations depending on context. The original usage derives from political
economy and economics, where it was traditionally called labor, one of four factors of
production although this perspective is changing as a function of new and ongoing research
into more strategic approaches at national levels. This first usage is used more in terms of
`human resources development', and can go beyond just organizations to the level of nations.
The more traditional usage within corporations and businesses refers to the individuals within
a firm or agency, and to the portion of the organization that deals with hiring, firing, training,
and other personnel issues, typically referred to as `human resources management'. This
article addresses both definitions.
The objective of human resources' development (the `s' is important in human resource`s' in
that it underscores indiduality/variability) is to foster human resourcefulness through
enlightened and cohesive policies in education, training, health and employment at all levels,
from corporate to national (Lawrence 2000)

HR POLICIES & PRACTICES

Human resource management's objective, on the other hand, is to maximize the return on
investment from the organization's human capital and minimize financial risk. It is the
responsibility of human resource managers in a corporate context to conduct these activities
in an effective, legal, fair, and consistent manner.
Human resource management serves these key functions:
1. Recruitment & Selection
2. Training and Development
3. Performance Evaluation and Management
4. Promotions
5. Redundancy
6. Industrial and Employee Relations
7. Record keeping of all personal data.
8. Compensation, pensions, bonuses etc in liaison with Payroll
9. Confidential advice to internal 'customers' in relation to problems at work
10. Career development
Modern analysis emphasizes that human beings are not "commodities" or "resources", but are
creative and social beings in a productive enterprise.

1.4 HR POLICIES AND PROCEDURES


This factsheet gives introductory guidance. It:
Highlights the main policies and procedures that organizations need to consider
Looks at formatting a policy and sources of information
Introducing HR policies and procedures gives organizations the opportunity to offer a fair and
consistent approach to managing their staff. For more on why HR policies are introduced, see
our factsheet HR policies and procedures: why introduce them?

HR POLICIES & PRACTICES

The Policy or Practice areas those are crucial to effective people management and
development:

1. Recruitment and selection


Recruitment policy
Employment category
Sexual harassment policy
Probation policy
Equal employment opportunity policy

2. Training and development


3. Compensation and benefits
Working time policy
Vacation policy
Holiday policy
Sick leave policy
Overtime policy
Leave policy
Bereavement leave policy
Adoption leave policy
Paternity Leave policy
Maternity leave policy
Loan policy

4. Employee relations
Communication policy
Problem resolution policy
Personal appearance policy
Conflicts of interest policy

5. Health and safety


Email policy
Internet use policy
Cell phone policy
Grievance policy
Health and safety policy
Smoking policy

HR POLICIES & PRACTICES

Visitor policy
Corporate security policy
Alcohol and drug policy
Discipline policy
Note: Not all policies and procedures will be relevant to all organizations, and some policies
are required by law while others are to promote good practice.
The following paragraphs indicate the range of possible policies which apply during the
employment life cycle - more detailed information and the legal requirements on each of
these areas is included.

Beginning employment:
Recruitment and selection
Successful recruitment depends on finding people with the necessary skills, expertise and
qualifications to deliver organizational objectives and who have the ability to make a positive
contribution to the values and aims of the organization. A diverse workforce that reflects
customer groups in the local community should be encouraged.
Elements to consider when forming a recruitment policy:
-

Job Profile/Person Specification

Dealing With Job Applications - Whether To Use Hard Copy And/or Online Forms;
Confidentiality

Recruitment Advertising - Discrimination Pitfalls

Selection Techniques - Training And Validation

Interviews

References

Medical Examinations

Asylum And Immigration

Documentation

Job Analysis

Equal Opportunities Monitoring

Return on Investment (ROI)/Cost.

HR POLICIES & PRACTICES

Induction
Designing an appropriate and cost-effective induction programme is a complex task. The
programme has to find a balance between providing all the information new employees need
without overwhelming or diverting them from integrating into the team.
The length and nature of the induction process will depend on the complexity of the job and
the background of the new employee.
Elements of an induction policy:

Organization Information - Background and Structure; Departments; Products and


Services; Physical Layout

Terms and Conditions - Hours Of Work; Holidays, Travel Policy

Financial - Pay; Bonuses; Overtime; Pensions

Culture and Values - Communication

Rules and Procedures - Data Protection; Email And Internet Usage; Equal
Opportunities; Use Of Mobile Phones

Health and Safety - First Aid; Smoking; Environmental Aspects

Training

Trade Unions

Welfare, Benefits and Facilities - Alcohol and Drugs; Employee Assistance


Programmes.

Organizations may find it useful to have checklists that cover the pre-employment period, the
first day, the first week, the first month and the end of the probationary period (if applicable)
to make sure everything has been explained.
There's more information on the website via our Induction subject page.
During employment
Employee relations look at the partnership between employee and employer, covering areas
such as communication, grievances and discipline. It is equally important in both union and
non-union situations. While employment law is closely linked with managing employee
relations, a successful organization won't just base its actions on compliance with the law -

HR POLICIES & PRACTICES

exploring the concept of the psychological contract, based on trust between employee and
employer, may also be useful.
Policies and procedures that organizations may introduce include:

Health And Safety

Disciplinary And Grievance

Maternity And Paternity Leave And Pay

Redundancy

Absence

Whistle Blowing

Performance Management

Recognition Agreements (Union And Other)

Time Off And Leave For Trade Union Activities, Holidays, Secondment,
Volunteering, Eldercare, Childcare, Bereavement

Communication And Involvement, Including Employee Voice

Harassment and Bullying.

There's more information on many of these issues on the website via our HR practice, Health,
safety and wellbeing and Employment law subject pages.
Managing diversity
Diversity runs through all aspects of an organizations policies. Managing and valuing
diversity is central to good people management and makes good business sense, so it also
makes sense for diversity to be integral within all policies. A diversity policy sets out the
organisation's vision and values in relation to diversity. It will often include the remit of
polices, the processes for taking action, who is responsible and the training available.
The basic premise is that people should be valued as individuals and for reasons related to
business interests, as well as for moral and social reasons. A more diverse workforce is likely
to offer a wider range of skills and experiences and greater flexibility to meet business
challenges.
Elements of a diversity policy:

HR POLICIES & PRACTICES

1.

Gender/Sex Equality

2.

Race Equality

3.

Sexual Orientation

4.

Religion

5.

Age

6.

Appearance/Accent

7.

Formats And Accessibility Of Policies And Procedures.

Learning, training and development


Roles and responsibilities are constantly changing, so employees will need to continually
renew and refresh their skills and competences through training. This can happen in the
course of normal working (on-the-job training) or away from the workplace (off-the-job
training).
Some training is mandatory to comply with legal requirements, such as health and safety or
finance.
Elements of a learning and development policy:
The Organizations Vision For Learning And Development
Opportunities Available, Including Secondment, Career Breaks, Courses, Coaching,
Mentoring
Support Given For Learning Opportunities
Record-Keeping And Administration
Continuing Professional Development And Personal Development Allowances (If
These Are Not Part Of The Employee Benefits Statement)
Follow-Up Actions And Transfer Of Learning To Work.
Complementary policies
Other policies that organizations may want to consider in relation to employment include:
1)

A Mission Or Values Statement

2)

Parental Leave

3)

Work-Life Balance/Family-Friendly Work Practices

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4)

Disability

5)

Relocation

Ending employment
There are many reasons why employment ceases, from voluntary resignation to dismissal or
redundancy.
Areas to consider for ending employment include:
1.

Dismissal

2.

Redundancy

3.

Voluntary Resignation

4.

Retirement - Retirement Age; Pre-Retirement Courses; Phased Retirement Options

5.

End Of A Short-Term Contract

6.

End Of A Probationary Period

7.

Death In Service.

Exit surveys can record information about why employees say they are leaving. But the data
is not always reliable. Another way to discover the reasons why is through opinion surveys
during employment.
Formatting a policy
Policies should be written in plain English, so that they are user-friendly and easily
understood by all employees.
The culture of the organization and the complexity of the policies will dictate the format.
Options include:
Separate Manager And Employee Manuals
All Policies Available On An Intranet
Key Policies on Notice Boards.
Policies should also indicate who to go to with queries about the content and who is
responsible for updating and reviewing them.

HR POLICIES & PRACTICES

HR POLICIES & PRACTICES

2. Review of literature
2.1 CONCEPT AND THEORY
Human Resource Practices and their Impact on Employee Productivity:
A Perceptual Analysis of Private, Public and Foreign Bank Employees in India

HR POLICIES & PRACTICES

- Shikha N. Khera

Abstract:
Over recent years there has been an increasing interest in the field of human resource
management. Currently, the literature encourages the consideration of human resources as
strategic factors, not only because they play important role in strategy implementation, also
because they are beginning to be reckoned as sources of sustainable competitive advantage.
Relationships between human resource management and productivity have been studied
from different perspectives. This study is an attempt to investigate the extent to which
Commercial Banks of India differ on aspects of human resource management practices and
the key Human Resource Practices contributing to employee productivity from a sample of
184 respondents from three commercial banks of India (one foreign sector, one private sector
and one public sector bank).

Human Resource Management Practices and Its Outcomes In Indian Public Sector
Banks
-

DR. P. T. SRINIVASAN

Abstract:
The purpose of this study is to find out the Human Resource Management Practices (HRMP)
and its outcomes viz. job satisfaction and organizational commitment in Indian public sector
banks. HRMP have been studied extensively among manufacturing, service and small
medium enterprises. However, only a few studies have addressed the banking industry.
Surprisingly, the research studies of this nature have rarely been conducted to assess HRMP
and its outcomes in banking environment. Through the survey method by the use of a
structured questionnaire designed to test employees perceptions, the data were collected.
Three public sector banks in India extended cooperation for this study It was targeted to elicit
600 responses from the Indian Public Sector Banks employees- 200 from each of the banks.
Confirmatory factor analysis, Cronbach alpha, Stepwise Multiple Regression and Structural
equation model (Path analysis) were used for various analyses of this study. HRMP are
significant predictors of Job Satisfaction and Organizational Commitment; Job Satisfaction

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dimensions also significantly predict Organizational Commitment; HRMP lead to Job


Satisfaction and Organizational Commitment

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2.2 Introduction
Without a sound and effective banking system in India it cannot have a healthy economy. The
banking system of India should not only be hassle free but it should be able to meet new
challenges posed by the technology and any other external and internal factors. For the past
three decades India's banking system has several outstanding achievements to its credit. The

HR POLICIES & PRACTICES

most striking is its extensive reach. It is no longer confined to only metropolitans or


cosmopolitans in India. In fact, Indian banking system has reached even to the remote corners
of the country. This is one of the main reasons of India's growth process. The government's
regular policy for Indian bank since 1969 has paid rich dividends with the nationalization of
14 major private banks of India. Not long ago, an account holder had to wait for hours at the
bank counters for getting a draft or for withdrawing his own money. Today, he has a choice.
Gone are days when the most efficient bank transferred money from one branch to other in
two days. Now it is simple as instant messaging or dials a pizza. Money has become the order
of the day. The first bank in India, though conservative, was established in 1786. From 1786
till today, the journey of Indian Banking System can be segregated into three distinct phases.
They are as mentioned below:
Early phase from 1786 to 1969 of Indian Banks;
Nationalization of Indian Banks and up to 1991 prior to Indian banking sector
Reforms;
New phase of Indian Banking System with the advent of Indian Financial &
Banking Sector Reforms after 1991.

2.2.1 History of Banks


Banking in India originated in the last decades of the 18th century. The first banks were The
General Bank of India, which started in 1786, and the Bank of Hindustan, both of which 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 immediately became the Bank
of Bengal. This was one of the three presidency banks, the other two being the Bank of
Bombay and the Bank of Madras, all three of which were established under charters from the
British East India Company. For many years the Presidency banks acted as quasi-central
banks, as did their successors. The three banks merged in 1925 to form the Imperial Bank of
India, which, upon India's independence, became the State 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 Simla.

HR POLICIES & PRACTICES

2.2.6 Types of Banks

Central Bank or Reserve Bank of India


The central bank of the country is the Reserve Bank of India (RBI). It was established in
April 1935 with a share capital of Rs. 5 cores on the basis of the recommendations of the
Hilton Young Commission. The share capital was divided into shares of Rs. 100 each fully
paid which was entirely owned by private shareholders in the beginning. The Government
held shares of nominal value of Rs. 2, 20,000. Reserve Bank of India was nationalized in the
year 1949. The general superintendence and direction of the Bank is entrusted to Central
Board of Directors of 20 members, the Governor and four Deputy Governors, one
Government official from the Ministry of Finance, ten nominated Directors by the
Government to give representation to important elements in the economic life of the country,
and four nominated Directors by the Central Government to represent the four local Boards
with the headquarters at Mumbai, Kolkata, Chennai and New Delhi. Local Boards consist of
five members each Central Government appointed for a term of four years to represent
territorial and economic interests and the interests of co-operative and indigenous banks. The
Reserve Bank of India Act, 1934 was commenced on April 1, 1935.
The Act, 1934 (II of 1934) provides the statutory basis of the functioning of the Bank. The
Bank was constituted for the need of following:
1. To regulate the issue of banknotes
2. To maintain reserves with a view to securing monetary stability and

HR POLICIES & PRACTICES

3. To operate the credit and currency system of the country to its


advantage

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HR POLICIES & PRACTICES

2.3 COMPANY PROFILE


Dear Patrons,
We are glad to inform you at the outset that our bank has been able to put
up a very good performance in the financial year 2013-14. We had
announced a very robust set of numbers across all key parameters. The
total business grew at 10.05 % from Rs. 76,077.83 Crore to Rs.
83,270.95 Crore. Total deposits grew from Rs. 44,262.30 Crore to Rs.
47,491.09 Crore and total Advances grew from Rs. 31,815.53 Crore to
Rs. 36,229.85 Crore. We registered a Gross Profit of Rs. 884.34 Crore as
against Rs. 848.59 Crore last year. We recorded our highest ever net
profit of Rs. 507.50 Crore.
We have been successful in maintaining a very healthy asset quality. Our Gross NPA has
come down to 1.19% and net NPA to 0.78%, which is lower than many of our competitors.
The fact is that we have been able to achieve this, in spite of a challenging economic
scenario. Our capital adequacy rate is at 12.5%, which is well above the RBI prescribed
value. We have been able to maintain a good Net Interest Margin above 3 %.The staff
productivity has increased from Rs 10.72 Crore to Rs 10.95 Crore per employee. We have a
total employee base of 6795 as of March 31st, 2014. The credit deposit ratio is at 76.29%
which indicates our capabilities for growing our asset base consistently. The book value per
share has grown from Rs. 22.44 to Rs. 25.06.
We have expanded our presence to 800 branches and 1000 ATMs spread across 26 states and
2 union territories in India. We have been consistently adding 50 branches and 200 ATMs
every year, with plan to add 25 branches and 25 extension counters this year. We also plan to
open 250 ATMs in the current fiscal. To complement our efforts to reach out to our customers
through the brick and mortar model, we have offered all modes of service delivery using
internet banking, mobile banking etc. This year we launched an innovative product MPassbook, which gives you an elegant view of your passbook real time on your mobile
device. The product is available in all flavours viz. Android, iOS, Windows and Blackberry.
We also offered fund transfer facility from mobile to any bank account in India using our MPay product. The advantage of this feature is that customer can transfer funds even on nonbusiness day/working hours.
We have won quite a few awards this year including 4 Best Banker Awards from Sunday
Standard, instituted by Indian Express Group in addition to the Banking Technology
Excellence Award from IBA. But as always, it is the smiling face of our happy customers that
we cherish the most. We have been able to retain our customers by personalizing our service
and fine tuning it to meet the unique requirements of each customer. We strongly believe that
each one of our customers would recommend our products and services to others.
We would like to reiterate to all out stakeholders that our efforts in growing this great
organization to greater heights shall continue. We have a target of 1,00,000 Crore of total
business for this fiscal. We are confident that we would be able to reach there as planned. We
look forward to the support and patronage from our customers, shareholders and well
wishers.
Wishing a great new fiscal!
With Warm Regards,
Dr.V.A.JOSEPH
(MANAGING DIRECTOR & CEO)

HR POLICIES & PRACTICES

Profile:
The South Indian Bank Limited (SIB) is an India-based schedule bank. SIB provides retail
and corporate banking, Para banking activities, such as debit card, third party product
distribution, in addition to treasury and foreign exchange business. SIB operates in four
segments: Treasury, Corporate/ Whole sale Banking, Retail Banking and Other Banking
Operations. The treasury services segment primarily consists of interest earnings on
investments portfolio of the bank, gains or losses on investment operations and earnings from
foreign exchange business. The Corporate / Whole sale Banking segment provides loans and
other banking services to corporate segment. The Retail Banking segment provides loans and
other banking services to non corporate customers. This segment includes income from Para
banking activities, such as debit cards, third party product distribution and associated costs.
The South Indian Bank was incorporated on January 25, 1929 in Thrissur, Kerala, by a band
of enterprising men at a time when Swadeshi movement was gathering momentum to provide
for the people a safe, efficient and service oriented repository of savings of the community on
one hand and to reduce the dependence of the business community on moneylenders by
providing need based credit at reasonable rate of interest. It became a scheduled bank in
1946. It has been in the forefront of upgrading the technology by introducing core banking
solution. It has implemented, Sibertech, which runs on Finacle platform provided by Infosys
Technologies Limited. All the branches in the major cities are covered under this project and
as on date 87% of the total business is networked under core banking solution. ICICI Bank
Ltd is the biggest shareholder of the South Indian Bank holding 11.25% of the banks
enquiry.
South Indian Bank has several firsts to its credit:
First among the private sector banks in Kerala to become a scheduled bank in 1946
under the RBI Act.
First bank in the private sector in India to open a Currency Chest on behalf of the RBI
in April 1992.
First private sector bank to open a NRI branch in November 1992.
First among the Kerala based banks to offer a Credit Card to customers in November
1992.
First bank in the private sector to start an Industrial Finance Branch in March 1993.
First among the private sector banks in Kerala to open an "Overseas Branch" to cater
exclusively to the export and import business in June 1993.

HR POLICIES & PRACTICES

First bank in Kerala to develop in-house, fully integrated branch automation software
in addition to the in-house partial automation solution operational since 1992.
As on 31-Mar-2009, it has a network of 530 branches, 13 extension counters and 280
ATMs.

History of South Indian Bank:


South Indian Bank is now one of the leading scheduled commercial banks in India with a
strong focus on technology and customer service. SIB has a pan India presence with 580
Branches, 3 Extension Counters and 377 ATMs spread across 23 States/Union Territories.
The total number of Employees of the Bank as on 31-12- 2008 is 4826. South Indian Bank
was registered as a private Limited Company under the companies Act of 1913 and
commenced business on 29-01-1929 at Round South, Thrissur. The South Indian Bank Ltd.,
was formed by a group of 44 enterprising men of Thrissur who contributed Rs.500/- each to
the initial paid up capital of Rs.22, 000/-. Their main objective was to serve the merchant
community of Thrissur by freeing them from the clutches of the money lenders who charged
exorbitant rates of interest. The bank received very good support from the public at large.
Initially the growth was slow but steady. The number of branches opened each year testified
its stability and popularity. It was included in the second schedule of the Reserve Bank of
India and became a scheduled Bank on 07-08-1946. SIB was the first scheduled Bank in the
private sector in Kerala to get the license under section 22 of the Banking Regulation Act
1949 from RBI on 17-06-1957. In the 80 years of its service the Bank had survived many
crises. It could survive the Kerala Banking crisis of 1960 when the Pala Central Bank was
closed down. A turbulent environment was experienced by banks in Kerala. It was a period of
merger, amalgamations and takes over. South Indian Bank ventured to extend its helping
hand to take over the assets and liabilities of 15 small banks in Kerala in 1964. It was based
on the general policy of consolidation formulated by RBI.

Branch Expansion:
As a result of this, the number of bank branches of the bank rose to 64 in 1964. This gave the
bank a new vigor and vitality. Thereafter it began to branch out and spread over the states of
Kerala, Tamil Nadu, Karnataka, Pondicherry, Andhra Pradesh, Maharashtra, West Bengal,
Gujarat and Delhi. When the 14 major banks in India were nationalized by Govt. of India in
1969, SIB was having 78 branches. The liberal branch licensing policy adopted by RBI
helped the bank to expand fast thereafter. At the time of Golden Jubilee Celebration in 1979,

HR POLICIES & PRACTICES

SIB was having a total of 235 Branches. Growth in the number of branches and growth in
business are shown in the table.

Foreign Exchange Business:


The Bank got license from RBI to deal in Foreign Exchange on 01-08-1975. It is an
authorized dealer in Foreign Exchange now and operates all types of foreign exchange
business. It has correspondent banking arrangements in all commercial centers of the world.
NRIs can remit funds to an account in the bank either online or through draft drawing
arrangements. The bank is entrusted with the management of remittance business of a
prominent exchange house in the UAE, M/s. Hadi Express Exchange, and has deputed
officers to the two offices of the Exchange house in Dubai and Sharjah.

Specialized Branches:
To provide specialized service to various segments of business, Bank decided to open
specialized NRI, Industrial finance, and overseas branches at various parts of our nation. The
first NRI branch was opened in November 1992 at Ernakulam and the first Industrial Finance
Branch in March 1993 at Coimbatore. The first overseas branch to cater exclusively to
export-import business was opened in June, 1993 at Ernakulam. Later on, an exclusive SSI
Branch was opened at Chennai.

Core Banking Solution:


SIB is the first Kerala based bank to implement the core banking system. The bank had
embarked upon a massive technology up-gradation project; by the SIB is the first Kerala
based bank to implement the core banking system.
The bank had embarked upon a massive technology up-gradation project, by the name
Sibertech, for introduction of Core Banking Solution. The Sibertech Project was formally
launched on January 17, 2001 by Sri. N.R. Narayana Murthy, Chief Mentor (Infosys
Technologies Ltd.) in a colorful function at Kochi.
For this, a modern Data Centre has been set up at Kochi, connecting all the branches, the
Departments at Head Office, Regional Offices, and the Treasury Department at Mumbai and
the International Banking Division at Kochi. This robust network facilitates anywhere
banking, Networked ATMs, Internet Banking, Mobile Banking, Global ATM cum debit card
operations etc. The Sibertech project was launched with a target of connecting the 200 odd
branches in two phases by March, 2004. Towards this endeavor, the bank concluded a
technology partnership with M/s. Infosys Technologies Ltd. for Finacle, the Core Banking

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Solution, M/s.HCL Info systems Ltd. for Network Integration and M/s. WIPRO for Data
Centre set up and maintenance. The bank has achieved 100 per cent connectivity by
implementing Core Banking Solution by 24th March, 2007. Further to strengthen the ATM
reach and global acceptability, Bank has introduced Global ATM-cum-Debit card, which can
be used at ATMs and merchant establishments all over the world. The Bank has also
introduced value added services such as mobile banking and internet banking. The aim of the
Bank is to offer the latest technology driven value added services to the customers towards
the realization of our motto Experience Next Generation Banking.

Board of Directors and Corporate Governance:


The composition of the Board of Directors is governed by the provisions of the Banking
Regulation Act, 1949. The Board consists of eminent persons with considerable professional
expertise and experience in Banking, accounting, finance and other fields as specified in the
said Act. Corporate governance of the Bank ensures high standards of transparency,
accountability, ethical operating practices and professional management. Under the
leadership of MD and CEO, Dr.V. A. Joseph, Chairman Sri. Amitabha Guha and other
directors and top executives, the Bank is now performing extremely well.

Organization Board:

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DY.GM.CR.
ADMIN

DY.GM.INS
Human
Resources:

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The bank attaches top priority to impart adequate training to its employees. It considers that
training is necessary for both individual and organizational effectiveness. The training should
help to develop the skills and knowledge and also the competencies desired from them.
Training interventions are effectively made use of by the bank to improve the performance of
the organization since 1965. SIB-Staff Training College (SIB-STC) commenced its
operations on 28th October, 1965. The first training batch of SIB-STC was inaugurated by Sri.
Samuel Mathai, Vice-Chancellor of Kerala University. Bank Chairman Sri.Joseph Chakola,
General Manager MCP Nambiar and STC Principal Sri.C.K.Menon were present on the
occasion. Since then SIBSTC has made substantial improvements and played a key role in
the progress of the organization. It could meet the qualitative and quantitative training needs
of the organization. In addition to the Central Staff Training College at Trichur, Regional
training centers were set up at Delhi, Mumbai, Bangalore, Chennai and Coimbatore in 2005.
Later, Regional training centers were set up at Calcutta and Hyderabad also. To facilitate the
transition of the Bank from a regional to national platform, and to bring in more
professionalism the bank has recruited specialist officers. The bank has also recruited a good
number of probationary officers and clerks through campus recruitment. This is in addition to
the national and regional level recruitments through entrance test. The bank also introduced a
Staff Welfare Scheme by which the children of the Staff members were offered employment
after proper selection process in lieu of their parents opting out of the job. The newly
recruited officers/clerks are posted to branches or offices after proper induction training. SIB
has innovated a number of Staff-welfare measures which are unheard of in the banking sector
in India. It has introduced an innovative and attractive incentive scheme encompassing all
staff members from ED to part-time sweepers. This helped the Bank achieve business targets
with focus on CASA products.
The bank has also introduced an Employee Stock Option Plan. The latest welfare measure
is the facility to avail long leave for purposes such as maternity and child care, higher studies
and medical treatment.

Milestones:
South Indian Bank commenced operations on 29-01-1929 as a private limited company in a
rented room at the western end of Bishop Menachery Building (now Municipal building),
Round South, and Thrissur. The bank opened the first branch in Wadakkancherry on 12-021932. The bank was converted as a public limited company on 11-08-1939.
The bank purchased a building at Round South, Thrissur on 25-05-1940. The FIRST among
the private sector banks in Kerala to become a scheduled bank on 07-08-1946 under the RBI

HR POLICIES & PRACTICES

Act. The English version of the Memorandum and the Articles of Association adopted on 0802-1947 South Indian Bank Employees Association (SIBEA) was registered on 03-03-1952.
The first balance sheet in English was published in 1953. The bank obtained banking license
from the RBI on 17- 06-1957 under the Banking regulation Act, 1949, becoming the first
bank in the private sector from Kerala The Silver Jubilee of the bank was celebrated on 0902- 1958 and Sri. K. Kamaraj, the Chief Minister of Madras and Sri. C. Achutha Menon, the
Chief Minister of Kerala graced the public function. The bank took over assets and liabilities
of 15 small banks in Kerala in 1964 as per the policy of consolidation of banks by the RBI.
The bank started staff training college on 15-10-1965. South Indian Bank Officers
Association was formed on 27-02-1966. A joint training college was started with Catholic
Syrian Bank and Dhanalakshmi Bank as co-partners on 01-09- 1970. The bank got license
from the RBI to deal in foreign exchange on 01-08-1975. The Golden Jubilee of the bank was
celebrated on 17-10- 1980 and 18-10-1980. Many dignitaries including, Central Ministers Sri.
R. Venkitaraman, the Finance Minister, Sri. C.M. Stephen, the Communications Minister and
State Ministers and Chairman, SBI graced the occasion.
The Head Office of the bank was shifted from the Silver Jubilee building at Round South,
Thrissur to the new building at Mission Quarters, Thrissur in 1984. A Co-operative Society
was formed in 1984 under the name South Indian bank Staff Co-operative Credit Society. The
bank ventured the publication of Students Economic Forum in December 1991. The first
bank in the private sector in India to open a Currency Chest on behalf of the RBI in April
1992 is this. The first bank in Kerala to develop in-house, fully integrated branch automation
software in addition to the in-house partial automation solution operational since 1992. The
first private sector bank to open a NRI branch in November, 1992 is this. This is the first bank
in the private sector to start an Industrial Finance Branch in March 1993.
The first among the private sector banks in Kerala to open an Overseas Branch to cater
exclusively to the export and import business in June, 1993. The first Public Issue of Shares
of the bank (IPO) was completed in October 1998. It Listed the Shares in BSE, NSE and CSE
in December 1998. The Sibertech Project for implementation of Core Banking Solution
commenced in 2001 The Platinum Jubilee of the bank was celebrated on 22- 03-2004. The
Chief Minister of Kerala, Sri. A.K. Antony and other dignitaries graced the occasion by their
presence. The Follow-on Public Offer (FPO) of banks shares was done in February, 2006.
Bharath Mammootty identified as South Indian Banks Global Brand Ambassador in October
2006 The bank achieved 100 per cent Core Banking Solution in March 2007. The bank could
raise substantial capital funds to the extent of Rs.326 crores by way of Qualified Institutional

HR POLICIES & PRACTICES

Placement (QIP) in September, 2007 and thus the total capital resources exceeded Rs.1000
crores Opened 500th branch on 31-03-2008 in New Delhi and came out with Bonus Issue of
Shares in 2008.

A New Visual Identity for New Competencies:


South Indian Bank unveiled the new corporate logo that demonstrates the major
transformation the bank has undergone since its inception. Padmashree Mammootty, the
three-time Bharath award winning megastar, who is also the global Brand Ambassador of the
Bank, unveiled the new corporate brand logo on 16th October 2006. Banks new logo will
project the significance of transformation to the public around the world. It is a positive sign
of change that has re-energized the staff members and caught the attention of the customers
who understand that South Indian Bank is dedicated to relationship built on trust. This warm
relationship of the customers and the staff alike with the Bank is beautifully portrayed in the
new logo by way of two hands strongly clasping on to the pillar- that is SIB, which
represent banks loyal customers on the top and the employees below. The new visual identity
of the bank consists of cardinal red and white colors. Red usually represents energy,
creativity and also joy. Red color also symbolizes warmth.
By embracing this color for its new logo, SIB is giving its customers the connotation of the
continuing growth of ideas and concepts and warm relationship.
It also conveys that the Bank is on the cutting edge of new technology. The new logo is a
combination of forms that suggest a stylized S. S here represents service, strength,
smartness, support and safety.
For the bank which emphasizes on personalized customer service which has been the Banks
core strength all these 80 years of its existence, S symbolizes, as mentioned earlier, service.
It may be pointed out that Outlook Money Cfore Survey selected South Indian Bank as
the best private sector bank in India in the service quality segment. S also represents
strength derived from superior banking technology. For the Bank which could bag an award
for excellence in banking technology from IDRBT- which is the technical arm of the Reserve
Bank of India, this is all the more meaningful. The bank has bagged this award for the
excellent contributions made in the area of information systems, security policies and
practices, by tightly competing with all categories of banks in India. During the global
financial crisis when there is public concern about the asset quality of banks, SIB is the only
bank from the private sector including the new generation and traditional banks to emerge as
the best bank in the asset quality in the BT-KPMG Survey of Best Banks in India
published on 12th December 2008. Experience next generation banking is the new corporate

HR POLICIES & PRACTICES

slogan of the bank. Besides the technological capability which the bank is having, the bank
recruits specialist officers as team members to provide professional customer services.

Business Strategy:
The Bank is committed to become a technology- driven, customer-oriented bank (the new
corporate slogan being -Experience Next Generation Banking) where passion for
excellence is a way of life, innovation is a tradition, commitment to values unshaken and
customer loyalty is abiding.
The long-term corporate objective is to emerge as the most preferred Bank in India, with core
competence in fostering relationship banking, garnering core deposit with accent on cost,
creating high yielding quality assets through focused marketing, qualitative appraisal and
effective monitoring. We are dedicated to provide quality service to our customers and
maintain high standards in corporate responsibility.

SIB-A Customer Oriented Bank


Despite acquiring the latest technological capabilities available to the banking industry in the
country, the Bank will continue the emphasis on personalized customer service, which has
been the Banks core strength for all these 78 years.
Incidentally, the Bank had also been selected, in the Outlook Money C- Fore Survey, as the
best private sector Bank in India in the Service Quality segment.

Vision and Mission:


Vision
To emerge as the most preferred bank in the country in terms of brand, values, principles with
core competence in fostering customer aspirations, to build high quality assets leveraging on
the strong and vibrant technology platform in pursuit of excellence, customer delight and to
become a major contributor to the stable economic growth of the nation.

Mission
To provide a secure, agile, dynamic and conducive banking environment to customers with
commitment to values and unshaken confidence, deploying the best technology, standards,
processes and procedures where customer convenience is of significant importance and to
increase the stakeholders value.

Objectives

To provide a secure, agile, dynamic and conducive banking environment to

customers;
To provide the best technology;

HR POLICIES & PRACTICES

To provide standards, processes and procedures where customer convenience is of


significant importance and to increase the stakeholders value.

Design:
Ever since major commercial banks were nationalized in two phases in 1969 and 1980, there
has been a sea change in their functions, outlook and perception. One of the main objectives
of nationalization of banks has been to help achieve balanced, regional, sectoral and sectional
development of the economy by way of making the banks reach out to the small man and to
the remote areas of the country.
An organization consists of people who carry out differentiated tasks which are coordinated
so as to contribute and achieves planned goals. Organizations are created mainly for
producing goods and services to the society for which they have to incorporate a formal
structure.
Indian banking is now operating in a more competitive setting with the induction of new
banks. Both Indian and foreign, who will be bringing in new work technology and specialist
expertise and a variety of new financing instruments.
The structure of South Indian a bank is Head Office, Regional Office, Branch Office,
Extension Counters and ATM Counters.

Head Office: South Indian Banks functions are controlled and coordinated by the Head
office. The Head Office of South Indian Bank is in Trichur, Kerala. It controls the activities of
regional offices and branch offices. All most all the departments are there in the Head Office.
Every decision is taken here. Since all the departments are there in the Head Office, every
function is done here. The main functions of Head office are given below.
It controls all the activities of bank: The managing Directors Secretariat is there in the head
office. So all most all the decisions pertaining to the smooth administration of the bank is
taken here.
It checks all the accounts of different Regional Offices and Branch Offices through its
accounts departments. Strong and sound DICT is there to make proper communication. It
deals with all the legal issues of the bank through the legal departments. It checks the NRI
account portfolio through its NRI division. It checks and reviews the customer relationship
management.

Regional Office: To make the administration and functions easier, Regional Offices are
set up for each region. It acts as a link between branches and head office. In each region,

HR POLICIES & PRACTICES

certain number of branches and extension counters are there. Administration is very difficult
according to the increase of the branches. Regional office makes the function of head office
lesser through its co responsibility. The Regional Offices of South Indian Bank is given
below: Bangalore, Chennai, Coimbatore, Delhi, Ernakulum, Hyderabad, Kolkata, Kottayam,
Kozhikode, Mumbai, Pathanamthitta, Palakad, Trivandrum, Trichur, and Madurai.

Branch Office: There are 580 branches for South Indian Bank. They come under specific
Regional office. To make personal contact with the customers, branches are very useful. In
branch offices, we cant see all the departments. But every function of the bank such as
accepting deposits, issuing loan and clearing is there. Job rotation is there in branch offices.
ATM Counters: The main purpose of the bank is to reduce the burden of the customer. So
the banks have opened ATM Counters at different places to avoid the wastage of time and
different formalities. South Indian Bank has set up 375 ATM Counters all over India. South
Indian Banks Global ATM-Cum-Debit Cards are now acceptable in the Master Card
International Network System as well as in the domestic National Financial Switch (NFS)
Network System owned by IDRBT, the technical arm of RBI. Provide on-line access to
Savings Bank or Current accounts of South Indian Bank. Tied up with the world-renowned
service provider, MasterCard International; can be used in 8, 30,000 ATMs & 7 million Point
of Sale (POS) terminals worldwide. South Indian Bank being a member of NFS network,
South Indian Bank cards are acceptable in other member banks ATMs. It can be used in
31000+ ATMs in India. The Maestro Debit card is a PIN based card and operates similar to
ATM making it 100% secure, even in POS terminals. Global Cards are issued free of cost to
the customers of South Indian Bank. Nominal fee is charged to the users at other Banks
ATMs. Cash withdrawal limits through ATMs is up to Rs.20, 000/- per day.
Departments
There are various departments in South Indian Bank for the smooth functioning of the bank.
It is a decentralized system. Each department is having their own authority, which is not
contrary but complimentary to the rules and regulations of the bank. The functions of the
bank will depend on the functions of the departments as explained below:
2.1.1. Managing Directors Secretariat: It lies in the head office which is in Trichur. The
members of this Secretariat are Managing Director, Executive Director, Chief General
Manager, and General Manager who are the administrative body of the bank. They formulate
the policies and strategies with the help the board.

HR POLICIES & PRACTICES

Accounts Department: Accounts Department can be seen in almost all the bank offices. The
Chief Manager, official staffs and clerical staffs are the members of this department. It
maintains and provides the accounts and financial reports of the bank as and when needed.
DICT: It is the department for information and communication technology. The office of
DICT is in Ernakulum. Deputy General Manager, Assistant General Manager, Staff members
and Clerical staffs are the members of this department. It facilitates information and
communication technology. It has a sub department namely Credit Data Management Centre
which deals with the credit sanction and maintenance of loan data.
Corporate Financial Management: The office of Corporate Financial Management is
situated in the head office in Trichur. Deputy General Manager, Officers in different scales
and Clerical staffs are the members of this department. It collects, verifies, maintains, and
provides the Profit and Loss Account and Balance Sheet of various branches and the head
offices.
Inspection and Vigilance Department: The Inspection and Vigilance Department is there in
the head office in Trichur. This department is functioning under the leadership of Deputy
General Manager and together with the co operation of the staff members. It inspects the
functions of the branches and evaluates the banking operations and it exercises the vigilance
authority too.
Legal Department: This Department deals with all the legal matters of the bank. This
department is very necessary to protect the bank from all the legal issues relating to the
functions, finance and customer relationship. This department is in the head office in Trichur.
This department is headed by Deputy General Manager with the co-operation of other
officers and clerical staffs.
NRI Division: This department is ultimately for NRIs. It deals with the accounts, deposits,
loans and customer related issues. This department is in the head office in Trichur which is
headed by the Deputy General Manager .He co ordinates all the official staff members and
clerical staff for the smooth functioning of the department and the bank too.
Personnel Department: It is in the head office in Trichur deals with the recruitment,
selection, promotion, transfer, compensation and employee grievances. This department is
headed by the Deputy General Manager to review the issues relating to the employees for the
growth and progress of the bank. He co ordinates the staff by hearing their grievances and
reports their demands to the higher authority.
Planning and Development Department: This department deals with the products of the
bank, issues circulars and appoints brand ambassadors. It is in the head office in Trichur

HR POLICIES & PRACTICES

which is headed by Deputy General Manager. He utilizes the abilities and skills of his
subordinates and motivates them to fulfill their mission effectively.
Secretariat: It is in head office in Trichur headed by Deputy General Manager. The main
function of this department is to deal with the public issues especially the matters relating to
the shareholders. Stationery cell is a sub department which provides the cheques and forms
etc.
Marketing Department: This department is in the regional office in Ernakulum. This is
headed by Deputy General Manager. It deals with the time, mode and place of
advertisements. It has certain sub departments such as Internet banking and Mobile banking
which deals with Cyber net, TM and SMS, Grievance Department which deals with the
customer issues in relation to the marketing of the products.
IRMD: This department calculates the risk, mortgage, security quality, and collateral and
deals with the management of risk. This department functions in the head office, Trichur.
Credit Department: In this department, there are various sub sections such as credit
sanction, credit monitoring and credit recovery. Credit sanction reviews the proposals and
sanctions. Similarly, Credit recovery deals with the NPA management, recovery of assets and
settlement. Finally, Credit monitoring gives a follow up for the credit proposals and recovery.
These three sections help the department for its smooth function.
Organization and Methods and Compliance: This department provides a code of conduct
for the bank reviews the code of conduct and evaluates the observation of this code of
conduct.
Treasury Department: This department deals with the equity. This departments function is
same as the marketing department. It deals with the funds; the collection of funds and the
proper allocation of funds.
International Banking: This department deals with the FOREX Rates. This is mainly related
to the foreign transactions.
These various Departments work together with co operation under the coordination of Board
of Directors and CEO toward its mission and vision. These departments help the bank for its
easiest operation and for the achievement of its organizational goals.
Accounts and Deposits
The south Indian Bank has different but similar accounts and deposits for Residents, NRIs
and corporate. They are given as Personal Banking, NRI Banking and Business Banking.
They are explained separately below. At first Personal Banking deposits and Accounts are
given below.
Personal Banking Deposits and Accounts
Savings Account

HR POLICIES & PRACTICES

A Savings Account with South Indian Bank allows the customers to route all their personal
financial transactions in a secure and convenient way. With the power of technology based
value added services, the customers are never away from their Savings Account. South
Indian Bank has different types of Savings Account to suit the customers need. They are as
follows:
Regular savings:
Privilege Savings Account
Group Salary Savings Account
Junior Savings
Saral Saving
Youth Plus Savings
Mahila Savings
SB invest

Term Deposits
Every customer can earn a higher income on your surplus funds by investing in a deposit
scheme of their choice. The Bank provides security, trust and competitive rate of interest.
South Indian Bank provides schemes which combine good returns with easy liquidity. Salient
features are,
Nomination facility is available in respect of all deposit accounts
Interest up to Rs.10000/- per annum is exempted from TDS
Loans are available on deposit accounts up to 90% of deposit amount
Some of the Term Deposits are given as follows:
Kalpakanidhi :
SIB Flexi Deposit
SIB Tax Gain 2006
Fast Cash Deposit
Fixed Deposits
Recurring Deposit
80 Plus Deposits
2.2.2. NRI Banking Deposits and Accounts
To support NRIs, The South Indian Bank offers high return deposit schemes in Indian Rupees
under the category of NRE/NRO and Foreign Currency in addition to Savings Bank
Accounts.
NRE Rupee Account
Savings Account
SB NRE
SB NRE Privilege
NRE SB Privilege Diamond Account
Youth plus Savings

HR POLICIES & PRACTICES


MAHILA Savings
Term Deposits
Kalpakanidhi
Flexi Deposit
Fixed Deposits
Recurring Deposits
NRO Rupee Account
Savings Account
SB NRO
SB NRO Privilege
Term Deposits
Kalpakanidhi
Foreign Currency Deposits
Term Deposits- FCNR

Kalpakanidhi
Platinum Kalpakanidhi
Fixed Deposits
Business Accounts
The South Indian Bank offers different types of Business Accounts such as Current Account,
Overdrafts (OD), Cash Credits (CC) and Mercantile Credits. These accounts allow you the
convenience of conducting day-to-day banking operations, in addition to offering working
capital credit requirements.
Normal Accounts
Premium Accounts

Loans
Residential Individuals
As time change, needs also change and so does the spending solutions available. As a result,
mindset has also changed. Nowadays, loans are an integral part of personal finance. It makes
sense in todays financial scenario. South Indian Bank foresees every kind of need and offers
various special packages. These special packages are explained below.
Personal Loan Scheme
Individual loans
Group Loans
Vehicle loans
Mobiloan Personal
Mobiloan Commercial
Mobiloan Agricultural

HR POLICIES & PRACTICES

Home Loans
For Resident Indians
SIB-Shelter
For Non Resident Indians
For Senior Citizens
SIB-SHIELD
Gold Loans
Gold Power
Gold Rush
Educational Loans
Vitjnan Pradhan Scheme
SIB Excellence
Vidyanidhi Scheme
Technology; Promotion Drive of South Indian Bank
South Indian Bank had embarked upon a massive technology up
gradation drive by introduction of a Centralized Core banking solution.
For this, a modern Data Center has been set up at Kochi, connecting all
branches with all the Departments at Head Office, all Regional Offices, the Treasury Dept at
Mumbai and the IBD at Kochi. This robust network facilitates anywhere banking, Networked
ATMs, Internet Banking, Mobile Banking, Global debit cum ATM card operations, Online
trading, online shopping etc. The Sibertech project was launched with a target of connecting
the 200 odd branches in two phases by March 2004.
Towards this endeavor, the bank has concluded a technology partnership with M/s Infosys
Technologies Ltd for Finacle, the Core Banking Solution, M/s HCL Info systems Ltd. for
Network Integration and M/s WIPRO for Data Centre set up and Maintenance.
The Sibertech Project was formally launched on January 17, 2001 by Sri.N.R.Narayana
Murthy, Chief Mentor, Infosys Technologies Ltd in a colorful function at Kochi.
The state of the art Data Center of international standards at Kochi is the only one of its kind
in the banking industry in Kerala. A number of dignitaries have visited this Data Center,
including Sri. Asim H. Premji, Chairman & Managing Director, Wipro Ltd.
Per se bank has achieved 100% Core Banking Solutions by 24th March, 2007.Further to
strengthen the ATM reach and global acceptability Bank has introduced Master Card Global
Debit- cum- ATM card, which can be used at ATMs and merchandise all over the world. We
have launched internet banking primarily focusing the individual as well as corporate clients.
The Bank has also introduced Mobile banking for customers as a value addition. The aim of
the Bank is to offer the latest technology driven value added services to the customers
without compromising the motto - Blending Tradition with Technology.

HR POLICIES & PRACTICES

New Pension System


Pension Fund Regulatory and Development Authority (PFRDA), established by the
Government of India on 23rd August 2003, and launched the New Pension System (NPS)
across the country with effect from 1st May 2009. PFRDA is mandated to act as a regulator
for the pension sector. South Indian Bank (SIB), upon willingness and technical
preparedness, has been allowed by the PFRDA to act as one of the Point of Presence (POP)
Banks in the country. In fact, SIB is the single old generation private sector bank that has
been

permitted

by

PFRDA

among

the

names

of

22

POPs.

SIB

has identified 312 selected branches across the nation, to act as the Point Of Presence
Service Provider (POP-SP).
(1) Initial Customer Interaction for NPS,
(2) Subscriber Registration,
(3) Maintenance of hard copies and record of transactions,
(4)Regular subscriber contribution file upload onto the Central Recordkeeping Agency
(CRA) System,
(5) Subscriber servicing,
(6) Grievance handling is some of the key functions of the POP.
Activities for providing all POP/POP-SP services to fully meet the requirements of PFRDA in
serving the citizens of India are already implemented in SIB.
Online Trading - SIBer Trade
Customers of South Indian Bank are availing capital market services presently through
multiple channels. SIBer Trade attempts to offer three-in-one (Online trading) model for the
benefit of our customers through our Bank.

Internet Banking:
Sibernet is the Internet Banking Service of South Indian Bank Ltd, which
allows its customers to avail the banks services through Internet.
Advantages of Sibernet
Online Payments
Conduct Banking Operations from House/Office/Cyber-cafe
Service available for 24 hours & 365 days a year
Accessible from anywhere in the world using Internet
Services Offered: Online Bill Payments / Shopping Mall:
This facility enables the customers to make payment for goods/services through Internet
Banking on-line real time in a secured way. The types of services, for which the payment can
be made, include the following:

Service Category

List of Merchants / Service Providers

HR POLICIES & PRACTICES

Mobile Bill Payments

BSNL Cellone / Airtel / Idea / Reliance / Vodafone etc.

Insurance Premium
Payments

LIC / MetLife / TATA AIG / Birla Sun Life / Kotak Mahindra /


Prudential ICICI etc.

Credit Card Payments

SBI Card / CitiBank Card / Barclays Card, etc.

Loan Repayment
Donations / Charity
Religious Offerings

HDFC / CITIBANK
CRY / UNICEF
Guruvayur Temple / Sidhivinayaka Temple

Educational Institutions

IIM Bangalore

Tours & Travels

Travelguru / Akbar Travels / Make My Trip / Yatra.com

Online Shopping

Home Shop18 / Sri Jagdamba Pearls Dealer/ Storeguru

RESEARCH METHODOLOGY AND DESIGN


STATEMENT OF THE PROBLEM
To Study The Various Policies And Practices Adopted By The South Indian Bank Ltd.
To study the extent to which the policies are being utilized by the employees
To Study The Employees Perception About The Policies And Practices Adopted By
The South Indian Bank Ltd.
To Study The Employer-Employee Relationship.
To Study The Requirements And Demands of the employees, And Provide
Suggestions To The Organization

NEED FOR STUDY


In todays challenging world the banking sector is facing high competition. The
scenario is continuously changing rapidly. It is imperative for the company to retain talented
people to enable achieve its objectives of introducing newer technology and also expansion
proposed in the near future.HR policies and practices is one of the predominant ways of
employees retention as it helps in understanding the requirements and satisfies their
demands.
The study mainly focuses on aspects such as recruitment, training and development,
performance appraisal, motivational tools, privileges and benefits welfare and safety and
grievance settlement. The study is based on the knowledge and perception of the employees
about the various HR policies and practices and its effectiveness.

HR POLICIES & PRACTICES

OBJECTIVE OF STUDY
Primary Objective:
To Understand The Hr Policies & Practices At The South Indian Bank.

Secondary Objective:
To Identity the Level of Satisfaction among Employees.
To Improve The Working Standards Of Employees.
To Identify Areas Where There Can Be Scope For Improvement.
To Give Suitable Recommendation to Streamline the HR practices.

RESEARCH DESIGN
A research design is the arrangement of conditions for collection and analysis of data in a
manner that aims to combine relevance to the research purpose with economy in procedure.
The aim of the study is to find out the level of awareness among the employee about the Hr
Policies & Practices adopted by the bank and also to confirm with their opinion about the
system hence it was decided to adopt the Descriptive Research Design for the purpose of the
study.
Descriptive Research studies portray accurately the characteristics of a particular individual,
situation or a group. The study undertaken by the researcher is descriptive in nature.

UNIVERSE AND SAMPLE


The first step in developing any sample design is to clearly define the set of objects,
technically called as the universe

(a)Area of study
The study was conducted at The South Indian Bank Ltd

Sample and sample characteristics:


(A)Sampling size
This refers to the number of items to be selected from the universe to constitute a sample. The
sample size of the research is 140 in number.

(B)Sampling technique
The respondents are interviewed and questionnaire circulated using convenient sampling
where each and every item in the population has an equal chance of inclusion in the sample.

TOOL OF DATA COLLECTION


A Structured questionnaire was used for collection off data. The questionnaire contained
questions on the following aspects:

HR POLICIES & PRACTICES

1.
2.
3.
4.

Personal data
Knowledge and awareness on the HR Policies & Practices
Opinion on the HR Policies & Practices
Suggestions

SOURCE OF DATA:
On one hand the study focuses on the components of the Hr Policies & Practices , it was
needed to seek the help of secondary source s of data i.e., books , articles , to arrive at
conceptual clarity of the HR Policies & Practices system.
On the other hand, the study was also concerned with finding out the level of awareness
prevailing among the employees about the Hr Policies & Practices; the primary sources of
data i.e., the users are taken into consideration.

DATA COLLECTION:
The data collection was done in the month of January 2012.the researcher personally went to
the organization and collected the data from the respondents on the basis of availability. Even
though it was a questionnaire, the researcher had to be with the respondents to give necessary
clarifications with regard to the doubts raised by the respondents on the different questions
included in the questionnaire.

SCOPE OF THE STUDY:


In this study I would like to concentrate on the best use of HR Policies & Practices by the
Bank for employee retention & motivation. To improve the working conditions, & the
relationship between The Board & employees, which would improve customers satisfaction
and in turn lead to profit maximization.

LIMITATIONS:
The study is limited only to the south Indian bank ltd.
The study is conducted under the assumptions that the information given by the
respondents are all correct.
Interaction with employees or executives is very limited because of their busy work
schedule.
Employees dont open up or answer the fact.

HR POLICIES & PRACTICES

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