1. MANAGEMENT AND ORGANISATIONAL SET-UP OF COMMERCIAL BANKS

2. 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”.

3. Maximum of profitability Social Responsibility
OBJECTIVES OF BANK MANAGEMENT
Maximum of profitability
Social Responsibility
To meet challenge of competitors
To improve the customer services
Introduction of new schemes
Introduction of Technology
Manpower Planning
Improvement of productivity
Improvement in the system of inspection

4. Functions of bank management
Planning
Organising
staffing
directing
coordinating
controlling

5. FUNCTIONAL AREAS OF BANK MANAGEMENT
Deposit Mobilisation
Financial Management
Credit Management
Profit Evaluation
Liquidity Management
Investment Management
Marketing Management
Portfolio Management

6. 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.

7. Features of Organisational set-up Commercial Banks
1. High Degree of Departmentation
2. Regional or Zonal Offices
3. Hierarchical Management
3.Hierarchical Management
a) Top Management
b) Middle Management
c) Branch Management

8. 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 important recommendations are given by the Banking Commission:

9. 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.

10. 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.

11. 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.

12. Organising Principles of SBI
Targeted Business Units
Senior Management Forums
Lean and integrative corporate centre

13. Business Group at Corporate Level
Corporate Banking Group- The group consists of three Strategic Business Units. These are:
Corporate Account Group
Relationship managers
Chief operating officers
Project finance
Project Appraisal unit
Marketing & Relationship management
leasing
credit
marketing

14. 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.
Development and Personal Banking
Commercial Banking Network

15. III. International Banking Group
International banking for Indian Customers
International banking for Foreign branches
IV. Associates and Subsidiaries

16. THANK YOU