Types of Banks Commercial banks can be majorly divided into these : 1.Public sector banks 2.

private sector banks 3.Foreign banks

Public sector banks Public sector banks are the banks where the government holds the major stake and it issues its share to public i.e. the bank goes public. All these banks report to the RBI. These banks also could be termed as government owned banks. The prime motive of the bank is public welfare and not maximizing its profits. Currently the target of the banks is to reach out to as many people as it can , so that the services could help the people in the villages. If we consider the statistics in financial year 2011, 21 public sector banks and five associate banks of State Bank of India collectively brought basic banking facilities to 26,630 villages, this being 118 per cent of the target of 23,629 villages. The targets were set by the Government in association with the Reserve Bank of India in order to reach the benefits of banking services to the common man. When we talk about public sector banks they can be classified as follows: 1.SBI group 2.Nationalized banks 3.Regional rural banks 4.local area banks

SBI group State Bank of India (SBI) is government-owned and is the largest bank in India The State Bank of India is the oldest and largest bank in India,with more than $250 billion (USD) in assets. It is the second-largest bank in the world in number of branches. it opened its 10,000th branch in 2008. The bank has 84 international branches located in 32 countries and approximately 25,000 ATMs. Additionally, SBI has controlling or complete interest in a number of affiliate banks,resulting in the availability of banking services at more than 14,600 branches and nearly 45,000 ATMs. SBI provides various domestic, international and NRI products and services, through its vast network in India and overseas. SERVICES The products include gold deposits (by weight), savings accounts with overdraft privileges, and an extraordinary number of passbook savings accounts. Investment Banking Consumer Banking Commercial Banking Retail Banking Private Banking Asset Management Pensions Mortgages Credit Cards SBI also provides new age services like E-pay: where in you can pay the bills online and other payments like phone recharges etc.This helps people avoid the usage of cheques. Internet Banking: the banking has become hassle free as a person can access his/her account from anywhere and it provides various facilities like transfer of funds etc.Statements could also be viewed. The service such as E-rail also uses the internet to book railway tickets.Also one might notice sbi has the largest ATM network which is an achievement with respect to the technology used.

The other services are the usual which comprise of the locker facility .personal banking which is reasonably new in the field of banking in india. Here are few numbers that one could relate with the SBIs business . Revenue $29.728 billion Operating income $5.507 billion Profit $2.668 billion Total assets $322.077 billion Total equity $19.048 billion

Real Time Gross Settlement System (RTGS)& National Electronic Fund Transfer system (NEFT) Bank offers Real Time Gross Settlement System (RTGS) & National Electronic Fund Transfer system (NEFT) which enables an efficient, secure, economical and reliable system of transfer of funds from bank to bank as well as from remitters account in a particular bank to the beneficiarys account in another bank across the country.

1.RTGS: An electronic payment system in which payment instructions between banks are processed and settled individually and continuously, on a real time basis, throughout the day. Available for transaction value of Rs.2.00 lacs and above.

2.NEFT : Another electronic payment system in which payment instructions between banks are processed and settled on deferred net settlement (DNS) basis at fixed times during the day. There is no minimum or maximum stipulated transaction value for using this facility.

CENTRALISATION AND DECENTRALIZATION Organizational setup where the authority to make important an decision is retained by the managers at the top of the hierarchy.This is centralization and it is followed as the bank cannot run the risk of taking a undesirable decision.Hence the decision is escalated to the higher level of management. Decentralizing on the other hand may be stated as follows. The important decisions about organizational resources taken to initiate new projects which are delegated to managers at all levels in hierarchy. The basic idea behind this is to prevent the wastage of time by taking quick decisions without waiting for approvals from the higher authorities in case of smaller issues . If the bank needs to purchase any kind of equipment like computers or software branch managers are required to take permission from the high authority So in terms of decision making centralization is high and low decentralization, managers have some power to take decision but it is very limited.

CHANGES As it is known that SBI has a large customer base ,in order to keep up to with the current trends the computerization came into picture this definitely adds to one of the pros that SBI has.According to indiastat.com SBI is fully computerized. SBI initially planned to convert only 3,300 of its branches, it was so successful that it expanded the project to include all of the more than 14,600 SBI and affiliate bank branches. Also one of the known problems that the bank faced is that of the attitude of the staff towards the customers.In order to come over this problem the bank has introduced a program called parivartan which means change. These changes are in order change the current scenario and to introduce themselves as a customer friendly bank who greets them with a smile and resolves every issue faced by the customers.

State Bank Group aims to respond faster to market demands, enable real-time information access and assign the right people to the right positions at the right time.

TECHNOLOGY On Implementation of mySAP ERP help State Bank Group drive advancement and innovation in areas of human capital management and enterprise resource planning such as e- learning, virtual classrooms, career development and successing planning, competency assessment, performance management and property management After these set of changes SBI hopes that it would result in increase its market share and customers would have a better experience with respect to attending their grievances .

The current concerns of SBI are to fulfil the following: 1.The delivery of new product capabilities to all customers, including those in rural areas 2. The unification of processes across the bank to realize operational efficiencies and improve customer service 3. Provision of a single customer view of all accounts 4. The ability to merge the affiliate banks into SBI 5. Support for all SBI existing products 6. Reduced customer wait times in branches 7. Reversal of the customer attrition trend

Nationalized banks

There are 20 nationalized banks in In 1969, the Government arranged the nationalization of 14 scheduled commercial banks in order to expand the branch network, followed by six more in 1980. A merger reduced the number from 20 to 19. Nationalized banks are wholly owned by the Government. although some of them have made public issues. In contrast to the state bank group, nationalized banks are centrally governed, i.e., by their respective head offices. Thus, there is only one board for each nationalized bank and meetings are less frequent

Regional rural banks Regional Rural Banks (RRBs): In 1975, the state bank group and nationalized banks were required to sponsor and set up RRBs in partnership with individual states to provide low-cost financing and credit facilities to the rural masses. The example here is AP grameen vikas bank which is sponsored by SBI . Government of India :50% Government of Andhra Pradesh :15% State Bank of India :35% The basic objectives of this bank are as follows: 1.Commitment for rural development 2.deployment of technology, with an emphasis on employment of rural youth.

3.augmentation of agricultural production.

Similarly we have other set of banks with the same objectives namely; Nagarjuna grameena bank, Manjira grameena bank etc.