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The organisation structure is the system of task, reporting and authority relationship within
which the work of the organization is done. This structure defines the form and function of the
organisation's activities. The structure also defines how the parts of an organization fit together.
The purpose of an organization’s structure is to order and coordinate the actions of employees to
achieve organizational goals.

These are the six key elements that managers need to address when they design their
organization’s structure. These are;
 work specialization
 departmentalization
 chain of command
 span of control
 centralization and decentralization
 formalization.

The organizational structure of SBI falls into two types.

 Functional Structure
 Product/ Divisional Structure

Functional Structure: A functional organizational structure is a structure that consists of

activities such as coordination, supervision and task allocation.
Divisional Structure: The Divisional structure or product structure is a configuration of an
organization, which breaks down the company into divisions that are self-contained. A
division is self-contained and consists of a collection of functions that work to produce a
product. The organization is departmentalized on the basis of function profile as shown in the
figure. Departments like Corporate and Global Banking, Retail and digital Banking, Treasury
Operations and Risk, IT, and subsidiaries.

The apex body of the bank, the central office is headed by a chairman who is assisted by a
managing director. The Chairman and the Managing Directors are appointed by the govt, of
India. Besides there are positions of Deputy Managing directors, one each for commercial
banking, HR and OD, international banking associate banks and planning, industrial
rehabilitation, personal and services. Banking and computer system and technology corporate
operations, personnel, development banking and treasury and investment management. The
activities of the deputy managing director (DMD) are coordinated by the managing director
(M.D.). The central Management committee comprising of chairman, MD and DMD's exists for
the purpose of taking important policy decisions. The central office is mainly concerned with
corporate policy and planning, development of critical resources, large advances, investments
and control of foreign offices.

 Deputy Managing Director Mid-Corporate Group (DMD MC) - Provide loans to

Mid-corporate Group, pertaining to International banking.
 Deputy Managing Director Stressed Assets Management (DMD SAM) - Handles
Recovery of bad loans/the accounts of large defaulters.
 Deputy Managing Director Global Markets (DMD GM) – He is responsible for
handling foreign office and overseas branches.
 Deputy Managing Director Chief Financial Officer (DMD CFO) - Handles the
balance sheet and is the head of accounting unit as well.
 Deputy Managing Director Cross Selling and New business (DMD CS&NB) -
Responsible for selling other financial products, and providing corporate loans to new
ventures and businesses as well.
 Deputy Managing Director Corporate Development Officer (DMD CDO) - He
handles the recruitment/training/accountability/transfers/postings/promotions.
 Deputy Managing Director Chief Info Officer (DMD CIO) - He is responsible for
handling and providing all matters pertaining to the Right to Information Act.
 Deputy Managing Director Chief Credit & Risk Officer (DMD CC&RO) - To ensure
that loan portfolio of bank is not subject to risk, he lays out plans and policies to
maximize recoveries and minimize risk.
 Deputy Managing Director Information & Management Audit (DMD I&MA) -
Information & Management Audit Department supervises internal audit of all foreign
offices of the Bank, namely:
a. Home Office Audit carried out by officials identified by Information & Management
Audit Department.
b. Internal Audit conducted either by an official of the Bank or by an outsourced firm of that
country, where foreign office is located.
c. Management Audit of Representative Offices, Joint Ventures and Subsidiaries.
Advantages of Divisional Structure for State Bank of India:
 Divisions work well because they allow a team to focus upon a single product or
service, with a leadership structure that supports its major strategic objectives.
 Having its own president or vice president makes it more likely the division will
receive the resources it needs from the company.
 Also, a division's focus allows it to build a common culture and esprit de corps that
contributes both to higher morale and a better knowledge of the division's portfolio.
This is far preferable to having its product or service dispersed among multiple
departments through the organization.

Disadvantages of Divisional Structure for State Bank of India:

 A company comprised of competing divisions may allow office politics instead of sound
strategic thinking to affect its view on such matters as allocation of company resources.
Thus, one division will sometimes act to undermine another.
 Also, divisions can bring compartmentalization that can lead to incompatibilities.


The central office has circles working directly below it. The State Bank of India is divided into
16 circles. The apex body of each circle is the local head office (LHO).

 BHOPAL Circle
 JAIPUR Circle
 LUCKNOW Circle
 PATNA Circle

LHO is headed by the chief general manager (CGM). The CGM is the chief executive of a circle
stationed at the local head office and he is envisaged as an extended arm of the corporate
management on location. There are two general managers (GM) one for operations and the other
for planning in each circle. The CGM is also the member secretary of the local Board and in
addition, discharge the responsibility of coordinating the activities of operations and planning
wing for achieving optimum results at a circle level. GM (operations) primarily attends to all
operational matters emanating from regional offices and assume total operation responsibility for
the circle. GM (planning) is the chief executive in the circle and is charged with the
responsibility of providing inputs to the central office for the evolution of the bank's policies as
also to make ongoing assessment of its policies and procedures keeping in view of requirements
of the operations wing.

The regional office will be headed by an Assistant General Manager and takes the responsibility
of co-ordination, developing and promoting the bank operations in a region. All Branch
Managers in a region will report directly to the AGM. The functions such as credit support, sales
planning, performance monitoring, general banking, personnel and HRD and NPA management
and recovery are managed at this office.