HUMAN RESOURCE MANAGEMENT STRATEGIES IN STATE BANK OF INDIA

This is as much info as I could download and find/ extract from reports and blogs. Please go through your individual questions to make sure theyre in line with requirements

Member wise allocation: please refine and format

Slides 3 to 9: Mihir and Vikram (q1 and q2) Slides 10 to 14: Praveen and Ayushi (q3) Slides 15 to 23: Kapil (q4) Slide 24: Amul and Malhan (q5)

I have segragated each question the best I can, however couldnt find something substantial enough for q5 you all will have to at least do that one question together. Ill format the document at the end of it as a report also, but please do the interior modifications to your individual questions and send back asap so I can start working on it.

About SBI
Bank of Calcutta in Calcutta on 2 June 1806 It was the first joint-stock bank of British India sponsored by the Government of Bengal Bank of Bombay (15 April 1840) and the Bank of Madras (1 July 1843) Amalgamation as the Imperial Bank of India on 27 January 1921. State Bank of India was constituted on 1 July 1955. The State Bank of India (Subsidiary Banks) Act was passed in 1959, enabling the State Bank of India to take over eight former State-associated banks as its subsidiaries (later named Associates). 480 offices comprising branches, sub offices and three Local Head Offices inherited from the Imperial Bank

Culture and Values

Mission of SBI: To retain the bank's position as the Premier Indian Financial Services Group, with world class standards and significant global business which is committed to excellence in customer, shareholder and employee satisfaction and to play a leading role in the expanding and diversifying financial services sector while placing continuous emphasis on its development banking role Vision of SBI: To be a premier Indian financial services group with global perspective, world class standards of efficiency and professionalism and core institutional values To retain its position in the country as a pioneer in development banking. To maximize shareholder value through high, sustained earnings per share To become an institution with a culture of commitment, a satisfying and exciting work environment and continuous learning opportunities

Core Values
1. 2. 3. 4. 5. 6. 7. 8. 9. Integrity Team Playing Learning and Renewal Transparency and Discipline in policies and systems Risk-Taking and Innovation Fairness in all dealings and relations Belonging and Commitment to the bank Profit Orientation Excellence in Customer Service

TRANSFORMATION JOURNEY IN STATE BANK OF INDIA

The 200 year old Public sector behemoth is today stirring out of its Public Sector legacy and moving with an ability to give the Private and Foreign Banks a run for their money New businesses with strategic tie ups Pension Funds, General Insurance, Custodial Services, Private Equity, Mobile Banking, Point of Sale Merchant Acquisition, Advisory Services, structured products etc. Covering 100,000 villages as its rural potential Bank is the largest provider of infrastructure debt and the largest arranger of external commercial borrowings in the country. It is the only Indian bank to feature in the Fortune 500 list.

And the growth continues

8500 of its own 11000 branches and another 5100 branches of its Associate Banks already networked, today it offers the largest banking network to the Indian customer With its over 8500 ATMs, and other electronic channels such as I-banking, debit cards, mobile banking, etc. 4 national level Apex Training Colleges and 54 learning Centres spread all over the country the Bank is continuously engaged in skill enhancement of its employees. Some of the training programs are attended by bankers from banks in other countries It presently has 82 foreign offices in 32 countries across the globe

and goes on.

It has also 7 Subsidiaries in India SBI Capital Markets, SBICAP Securities, SBI DFHI, SBI Factors, SBI Life and SBI Cards - forming a formidable group in the Indian Banking scenario. Employee strength over 200000 The CNN has offered prestigious Indian of the Year Business, to its Chairman, Mr. O. P. Bhatt in January 2008.

Products and more + Business strategy

"The nationalized banking industry would be subject to tremendous pressures to perform as otherwise their very survival would be at stake......The nationalized banking industry in India will have to get its act together if it has to survive in the new millennium since it would be subject to intense competition not only from the new domestic players but also from established global outfits." 1 - SK Gupta, Chief General Manager, (Bengal Circle), State Bank of India. "We are second to none in banking technology, though we were initially far behind the private sector banks in launching core banking solutions to facilitate anywhere banking facility. We are now in a position to take the lead in the banking technologies as we have become front runners in the sector." 2 - A Ramesh Kumar, Chief General Manager, SBI's Mumbai Circle. Introduction In March 2003, State Bank of India (SBI) and its associate banks had 13,579 branches, one of the largest branch networks for any bank in the world. It played a key role in providing working capital finance and term loans to Indian industry. In 2003, SBI had eight business units - corporate banking, international banking and domestic banking for concentrating on core business areas; associate banks unit for looking after these banks, credit division unit to monitor overall credit and three other business units including finance, corporate development and inspection for in-house work.(Refer Exhibit I for the Organization Structure of SBI). SBI was the largest commercial bank in India in terms of revenues, assets, deposits, branches and workforce. Since the late 1990s, SBI had been losing market share in the Indian banking industry due to the tough competition from private sector banks (Refer Exhibit II for market share of public, private and foreign banks in 2001). By adopting modern technology and offering superior customer service, the private sector banks gained a significant share in urban banking. Expressing concern over this trend, in an interview to the Asian Banking Journal, AK Purwar, SBI's Chairman and Managing Director since November 2002, said, "The top most priority for the bank has been retention of market share. As a PSU bank, SBI was losing its market share. Although it was at a very slow pace, it was definitely losing its market share."3 To regain lost ground, SBI initiated a major internal restructuring exercise. The bank responded to competition by taking several measures including offering an array of new products and services, forging alliances with other business entities, entering new areas of business and adopting novel ways of reaching out to customers and providing them value-added services Background Note The origin of SBI dates back to the early 19th century, when the Bank of Calcutta was established in Calcutta (present day Kolkata in the state of West Bengal) in June 1806 under the aegis of the Government of Bengal. Three years after its inception, the bank was renamed Bank of Bengal on receiving its charter. It was a unique banking institution as it was the first joint-stock bank in British India. Next came the Bank of Bombay in April 1840 followed by the Bank of Madras on July 1843. By 1876, the three presidency banks, together with their branches, agencies and sub-agencies, covered major inland trade centers in India. Bank of Bengal had 18 branches while the other two had 15 branches each. Initially, the business of these banks was restricted to discounting bills of exchange or other negotiable private securities, keeping cash accounts and receiving deposits and issuing and circulating cash notes. The last quarter of the 19th century witnessed rapid commercialization in India owing to the expansion of the railway network, to cover all major geographic regions of the country However, the quasi-central bank role performed by the Imperial Bank ended with the formation of the Reserve Bank of India (RBI) as the central bank of India in 1935. RBI's establishment was a catalyst in the conversion of the Imperial Bank into a purely commercial bank. At the time of Independence in 1947, the Imperial Bank had acquired a paramount position in the country's banking industry. It had a capital base of Rs.118.5 mn, deposits of Rs. 2.7514 bn and advances of Rs. 729.4 mn. It had a network of 172 branches and over 200 sub-offices spread all over India. When the first Five Year Plan was launched in 1951, the rural sector was given top priority. The three presidency banks were both beneficiaries and promoters of this commercialization process as they became involved in the financing of practically every trading, manufacturing and mining activity in the Indian sub-continent. The three presidency banks were amalgamated in January 1921 to form the Imperial Bank of India. The new bank performed the triple role of a commercial bank, a banker's bank and a banker to the government. The Imperial Bank and other commercial banks too operated mainly in urban areas and had not yet penetrated the rural sector. To overcome this lacuna, it was recommended that a state-partnered and state-sponsored bank be created to take over the Imperial Bank and integrate the former state-owned or state-associated banks with it...

Liberalization of the Indian Banking Industry Private sector banks made their first appearance in January 1993. During that period, PSBs accounted for over three-fourths of total banking industry assets. They were weighed down with huge NPAs(Non-Performing Assets), falling revenues, lack of modern technology and a massive and highly unionized workforce. New entrants began to erode the market share of the nationalized banks, especially in metro cities and urban areas. The PSBs found it increasingly difficult to compete with the new private sector banks and the foreign banks. These banks also employed state-of-the-art technology, which helped them to save on manpower costs and concentrate on providing better service... The Restructuring To overcome the intense competition from private and foreign banks, SBI planned a major organizational restructuring exercise. The key aspects involved redesigning of branches, providing alternate channels; focus on a lean structure and technological upgradation. A business process reengineering (BPR) team was constituted in June 2003 with McKinsey & Company as consultants. The BPR's basic goal was to create an operating architecture that would facilitate service delivery of international standards. The project objectives were defined as "increasing customer satisfaction and convenience, freeing up time for branch manager and branch staff to focus on sales and marketing, simplifying process for employees, enhancing SBI's competitiveness in the market, increasing the profitability through higher market share and improved process efficiency..." New Products and Services Apart from restructuring, SBI launched several innovative, value-added products and services to project a customer friendly image. It launched a special service for corporate customers called 'telebanking and remote login' to support transactional requests. This facility would be available at 593 branches, and remote login at 269 branches. The bank's trade finance solution, called EXIMBILLS, was intended to handle trade finance transactions efficiently and enhance the range of services provided to corporates and network branches. In March 2004, SBI announced that it would introduce 'anywhere banking' facility for its customers from over 9000 branches across India in the next two years. All branches in Mumbai would provide this facility by December 2004. SBI also launched different customized loan programs to cater to various sections of society depending on income levels and repayment capabilities. Interest rates and repayment periods were tailor-made to suit the customer groups...

Alliances and Tie-Ups To boost its business, SBI entered into several alliances and tie-ups with automobile, insurance, mutual fund, project finance and medical equipment companies. Auto Finance Unlike other competitors that relied on reduced interest rates to get business, SBI extended the tenure of car loans from five to seven years, thereby lowering the monthly debt repayment burden of the loan seeker. SBI entered into a tie-up with Maruti, the largest automobile manufacturer in India, to provide loans for purchase of Maruti cars at the rate of 10.05 per cent and 11.25 per cent for three years and above three years respectively. After the scheme was introduced, SBI emerged as the largest financier for Maruti cars in India and the number of Maruti vehicles financed grew by 17 per cent in the fiscal 2003-04 over fiscal 2002-03... The Marketing Initiatives SBI carried out various marketing initiatives to enhance its reach. They included segregating and targeting existing high value customers, cross sales of other products, setting up call centers and outbound sales force to secure new customers. Plans were also made to utilize database marketing to pursue large and medium sized corporates, government and trade finance customers. Database marketing was expected to draw increased revenue from cross selling, lower costs and increased customer loyalty. SBI also introduced various other ways of reaching out to customers like extension of hours of work and aggressive marketing through print and television media. SBI increased daily working hours by two hours and Sunday banking was introduced... Looking Ahead SBI's restructuring exercise and growth strategies resulted in an increase in profits for the fiscal 2003-04. Net profits stood at Rs 36.81 bn for the fiscal ended 2003-04 as against Rs 31.05 bn the previous fiscal, an increase of 18.55 per cent. Operating profits stood at Rs 95.535 bn compared to Rs 77.754 bn in the fiscal 2002-03. In spite of SBI's efforts to reduce workforce, staff costs rose by 13.3 per cent, mainly due to additional contribution to pension fund and provision for leave encashment. The net NPA level came down from 4.5 per cent in the fiscal 2002-03 to 3.5 per cent in 2003-04. SBI aimed at 2 per cent NPA by 2004-05 (Refer Exhibit IV & V for the financial highlights of SBI group)...

HUMAN RESOURCE DEPARTMENT AT STATE BANK OF INDIA

HRD in the State Bank is a continuous process, movement and direction to enable every individual to realize and activate his potential so as to contribute to achievement of the Banks goal and derive satisfaction from therefrom. Corporate Centre, Mumbai looks after 1. Personnel & HRD 2. Personnel Management 3. IR Policies 4. PPG (Pension, Provident fund & gratuity) Department

Organization Structure of HR Departmentv

SBI CORPORATE CENTRE MUMBAI

CGM (HR)

CDO

DGM (LEARNING & DEVELOPMENT)

AGM (HR)

CM (HR)

MANAGER (HR)

JOB ROTATION
Entire work of branches classified into 10 clusters Clusters over a definite period of 7-8 years through predetermined schedule Enables staff to have an overall perspective of the work as well as develop knowledge and skills in different branches of work Organizational efficiency is kept high Job profile is first prepared based on which job rotation plan is prepared Helps to avoid frauds Employees are trained before assigning duties

Quality Circle
The quality circle meets every week on a fixed day for one hour. The group is guided by a facilitator whose role is catalytic Techniques such as brain storming, data collection, pareto analysis are also followed Constructive co-operation among staff to improve the quality of work life through creative thinking Held every year to encourage Q.C movement in the bank.

Annual Appraisal Report

Stabilizes essential values of the organization viz. openness, mutual trust and morale courage Salient features of AAR A single reporting system for all offices Data bases & Comprehensive Marking system follows to make it more objective. Provision for self appraisal.

Scheme for reorganization and reward of alertness in staff for Prevention/detection/foiling of frauds
Applicable to all staff members including the part time staff. Alertness Awards Committee set up at Corporate Centre which meets at least ones in a quarter and recommends for the award. There are three categories for the award. - A citation or Certificate of Merit - A citation or Certificate of merit with a memento containing a suitable legend - In addition to above, a cash reward ranging between Rs. 500- Rs 50000 will also be given. - The award will be mentioned in the service records as also Annual Appraisal Reports.

Award for excellence in business by AGM

AGM of a Regional Business with a minimum tenure of 2 years to be eligible Benefiting memento upto Rs. 10000 to be presented by the Circle CGM Option to choose between a 3 months training abroad or to avail 15 days special LFC with family member at any destination in India or Abroad. Expenses maximum of 10 lakhs in ease of training abroad and 2-3 lakhs for special LFC to be borne by bank.

Staff Suggestion Scheme

Suggestion from staff is accepted in all areas of banking Two screening committees , one at the Local Head Office and the other at Corporate Centre Cash Reward : Minimum Rs.1000- Rs.5000 If suggestion accepted at circle level , a reward upto Rs. 2500 is granted If not accepted , a reward of Rs.150 in the form of books may be sanctioned to encourage the participation of staff. Employees cam submit there suggestion online also.

Training
Training is a powerful weapon in the bank State Bank staff college at Hydrabad & Gurgaon have been focal point for this purpose State Bank Institute of Rural Development ( SBIRD) Hydrabad has been conducting special program in Agriculture & Rural Development Institute of Information & Communication Management (SBIICM) in Hydrabad gives special training to staff in the areas of Information Management, telecommunication and electronic banking There are more then 45 learning centers in India

Training Philosophy of the Bank

Distance learning & Personnel Communication Visiting Faculty Program In Branch training program

Career Program for workmen staff in SBI :

The opportunities for career progression. Keeping in view the above factor bank charges the policy of promotion of clerical staff to Junior Management grade as officers and subordinate staff to clerical cadre to match the changing needs of the bank and the employee profile and formulated an assured career progression schemes providing a time bound movement to higher position within the cadre Also contains many of the positive features which has a beaming on the banks functioning and facilitate improved customer service Fast track promotions have been introduced at all levels upto Scale VI (DGM)

Preventive Vigilance in the bank

Committee have been set up in all the Branches where staff strength is more even 20. These comities meet at regular intervals and review whether the system and procedures as laid down by the bank are followed Thrust on preventive vigilance rather than on detective or punishitive vigilance The bank has issued Whistle Blowing for all sections of the employee and instituted The Alertness Award for self A list of frauds prone branches is prepared in each of the circles Functioning of the branches which scored lower ratings in Inspection Audit under Control & Supervision All circles are conducting suo motto investigations at different branches on random basis Special Audit reports by Central Office Inspectors are also being pursued and appropriate corrective steps are being taken to ensure that deterrent action is taken against the fraudsters within a period of 3 months.

Staff Welfare Activities

Canteens Holiday/ Convalescent home : more than 50 throughout India Scholarship to meritorious students (children of staffs) Mutual welfare schemes Loans & Advances Medical Treatment Silver Jubilee Award Memento to staff at retirement Consumer C-operative Stores SBI Retired Officers Medical Benefits Scheme for sponsoring officers for Management / Higher Studies abroad

Job Families : Specialization in identified functional banking areas of Supervising staff

Bank business has been classified under 10 clusters of related skills/knowledge referred as 10 job families Corporate banking, project finance, international banking, treasury, retail/personal banking, agricultural banking, SME, Government Business, Information technology ,human resource & centralized processing centre. System gives opportunity to officers to work in the areas of there choice. It will also enable the bank to develop talent pools with medium range perspective . it is also envisages better alignment of training and placement functions with the business/HR perspective.

Human Resource Management Projects

Recently automated its HR processes with the overall objective of gaining efficiency in the operations and aligning the HR Processes with business objectives HRM solution is being implemented that handles all aspects of HRM including payments of wages & salaries etc, performance management, fixed assets etc The bank has also selected SAP-ERP-HRMS solution