MANAGEMENT AND

ORGANISATIONAL SET-UP
OF COMMERCIAL BANKS

MANAGEMENT OF COMMERCIAL
BANKS
A

Banking company, like any other

company or corporate body, is an
artificial person existing only in the eyes
of law. It has separate legal entity with
no physical existence of its own.
Management is that process by which
managers create, direct, maintain and
operate purposive organisations through
systematic, coordinated and cooperative
human efforts.

OBJECTIVES OF BANK MANAGEMENT

Functions of bank
management
Planning

FUNCTIONAL AREAS OF BANK

MANAGEMENT

ORGANISATIONAL SET-UP OF
COMMERCIAL BANKS
Organizational

set up is defined as a
system in which individuals and groups
operating at different levels perform the
tasks assigned to them within the frame
work of delegated authority and
responsibility which are rationally
coordinated to achieve the desired
organisational goals.
An organisational set up consists of people
who carry out differentiated tasks which
are coordinated to contribute to
organization's goals.

Features of Organisational setup Commercial Banks

2. Hierarchical
3.
Regional or Zonal
Management
Offices

3.Hierarchical Management

Banking Commission Recommendation

on Restructuring Organisational Set-up
of Nationalised Banks
Government

of India appointed the

Banking Commission in Febrauary
1969 under the Chairmanship of Sh
R.G.Saraiya to study the
organisational structure of the
nationalised banks and to make
suggestions to remodel the
organisational structure to suit the
needs of Indian society. The following

Continued.
1. The organisational structure of all the
nationalised banks should be on the lines
of that of the State Bank of India.
2. The Commission recommended the
constitution of regional boards with
statutory powers and responsibilities as in
case of SBI
3. The head office of nationalised banks
should be main concerned with planning
and budgeting of setting up of goals for
zonal offices in performing their functions.

4. There should be functional

departments at head office level of
nationalised bank dealing with
budgeting and profit planning, economic
research management development,
public relations, organisation and
methods, legal matters alongwith
general departments like control over
branches, central accounts.
5. The main function of top executive
must be relation to policy formulation.

6. A zonal office should be there to control

and guide the 200 to 300 branches.
7. The branch manager should be relieved
from day-to-day activities to enable him
to devote sufficient time to plan,
coordination, control, training, public
contacts and business development.
8. There should be separate departments
for deposits, collections, remittances,
safe deposit vaults, advisory services,
accounts, cash clearing, advances etc.

Organising Principles of
SBI
Targeted Business Units

Business Group at
Corporate Level
I.

Corporate Banking Group- The

group consists of three Strategic
Corporate
AccountUnits.
Group
Business
These are:

II. National Banking Group- The National

Banking Group serves large and
medium sized corporate sector, small
industrial agricultural and institutional
customers. The 13 Local Head Offices
are constituted the Strategic Business
Units under this group. Each LHO
having two network of branches
namely.
a) Development and Personal Banking
b) Commercial Banking Network

III. International Banking Group

International banking for Indian
Customers
International banking for Foreign
branches
IV. Associates and Subsidiaries

THANK YOU