Professional Documents
Culture Documents
By:
ABHINAV GUPTA
AMIT PANDEY
BHASKAR SINGH
MUKESH SAROJ
SAGAR KUNDU
UDITA AGRAWAL
Table of Contents
1. Introduction
2. Comparison
3. Value Chain
4. Strategy Formulation Process
5. Constraint of Services
6. Forecasting
7. Challenges
8. Inventory
9. Human factor in operations
10. Location
11. Layout
12. Instances of Success
13. References
Introduction
As per fortune 500‐2008 following are the data for SBI in $ million.
Revenues: 22,402.2
Profits: 2,225.0
Assets: 255,854.9
Stockholders' Equity: 15,263
The SBI group companies include SBI Capital Markets Ltd, SBI
Mutual Fund (A Trust), SBI Factors and Commercial Services Ltd,
SBI DFHI Ltd, SBI Cards and Payment Services Pvt Ltd, SBI Life
Insurance Co. Ltd ‐ Bancassurance (Life Insurance), SBI Funds
Management Pvt Ltd, SBI Canada.
SBI was rechristened as State Bank of India in 1955 from
Imperial bank of India.
Earlier SBI had only seven associate banks that, with SBI, constitute the
State Bank Group.
All use the same logo of a blue keyhole and all the associates use the "State
Bank of" name, followed by the regional headquarters' name.
Originally, the then seven banks that became the associate banks belonged
to princely states until the government nationalised them between October
1959 and May 1960
Branches of SBI
Other Serv.
Risk Management
Technology Development
Human Resources
Firm Infrastructure
Consumer Credit
Mgmt. Offering Settlement
Process derived
• Introduci • e.g. • Managem • Determin • Collateral • Credit • Payment • Booking
ng a general ent of e financial evaluatio data to of of
brand offers to Sales via requirem n Treasury Interest Payment
e.g.
„easycre
custome
rs via
Internet,
branches •
ent
Identificat
• Rating of •
borrower
Refinanci •
ng of
Payment
of •
s
Governa
from the generic
dit“ in
the credit
letters and sales
banks
ion of
potential
• Final
pricing
Credit amortise
ment
nce of in-
time value chain
market collateral • Credit payment
• Advertisi s Approval s
ng • Pricing • Credit • Bad Loan
Account Mgmt./
opening Realisati
• Payout of on of
credit collateral
s
Corporate
Strategy
Strategic
Measure for
decisions for Operational
corporate
operations Strategy
excellence
systems
Competitive Dynamics at the market place
The Indian banking sector is highly characterized by large no. of banks with
mixed ownerships
Entry of new private banks and branches of foreign banks have given
a surge to the competition
Need to have a network not only in urban areas but most importantly
in rural areas.
ORDER WINNER
Trust, commitment and wide spread in rural area:
It is because of its trust which implies in the minds of the
public with the brand SBI. Also its reach is not only in
most developed areas but also in the remote villages that
makes it the most preferred bank to bank on. Ideally the
concept of financial inclusion after been coined by RBI is
best implemented by SBI in all other public banks.
Strategic options for sustaining competitive advantage
• SBI’s philosophy of opening new branches
• Technological up gradations to compete with highly
modernized private banks
• Maintaining a highly diversified portfolio so as to cater to
the varied needs of customers
• Better customer service management and providing quick
solutions to their needs.
Operational strategy
• Restructuring
• Alliance and tie ups
• New products and services
• Marketing initiatives
• Increase in the no. of branches
• Going retail in international operations
Measures for operational excellence
Fiscal policy
Exchange rates
• Future Expansion
• Manpower requirement
• Cash reserves
• sustainability
CHALLENGES
Indian Banking Challenges: Customer Diversity
Stakeholders Prospects
Customers
Associate Banks
Treasury
Other Banks & Alliances
OPERATING UNITS
Corporate Office
WIDE AREA NETWORKING AND CORE BANKING
• All 17000+ branches of SBI Group are on Core Banking.
• Enabling Anywhere Anytime banking
• One of the largest private worldwide network
• Using Leased lines, ISDN, PSTN, MPLS, VSATs
• More than 25,000 touch points
ATM Project
Numbers Nearly 20,000 ATMs
Largest Bank owned network in the world
No. of Users:
4 million
5 million txns per month
3.5 million Retail
1.5 million Corporate
Services:
Funds transfers (including through
RTGS & NEFT, Payment of utility
bills, Payment of taxes, Booking of
Rail/Air tickets
Mobile Banking
49
Preparing for the future
Revamping Network
Cash reserves
There are two ways through which they approach towards inventory
When the branch places order to the CSD department, they match
their forecasting to the inventory demanded.
Cheque book:-
• In case of cheque book there are 50 leaflet inside it and after 45th
leaflet there is a request slip through which a customer places an
order for a new cheque book.
• Giving request slip before 5 cheque help them in order to avoid
inventory for cheque book and follow just in time process i.e.
customer places an order when 5 cheque is left and before it finishes
they get new cheque book.
Case of unexpected demand in bank
• After running the said software programme will show the daily
current balance at the time of running the software programme
along with the receipt & payment and cash retention limit of the
respective branch at the time of running the same.
• Many of the branches are not in need of cash viz-a-viz they are
having surplus cash which they need to deposit with the cash pool
where as some of the branches have to fulfil their cash requirement
daily or on alternate days.
• The official have to keep record in the register maintained at the cash
pool by telephonic enquiry with the branches volume of average daily
cash they require for ATM transactions which enables the cash pool to
take into account the daily cash requirement of the branches.
• On 7th & 10th of every month on which generally the salaries of the
customer are being credited at the branches and so also, the huge
withdrawals from the customers takes place on the said dates which
results into increase in daily cash requirement up to Rs 50 lacs to 70
lacs.
HUMAN FACTOR IN OPERATIONS
Training
Proper guidance
New employee meet the right people on his first day of job.
Support
To good deeds
Motivation
Address the new employee by high rank officials to motivate
them and introduce the problem they face during work.
Forecasting of employee for new branch
Market Research: By this the bank find out which rural area is
suitable for opening branch. (No of villagers present and people’s
economic conditions etc
Other Banks are present their or not (penetration level)
Land rate in that area
Connectivity with nearest town etc.
Communication available like phone internet facility etc
Banks also monitor cash inflows and outflows from a particular
while choosing for land
Feedback from existing branches (like success and feasibility rate in
rural branches)
LAYOUT
OLD
Now in bank huge space is covered as customer lobby and the back
office function is totally isolated.
Now since its said “Customer is the King” so SBI has to change
its layout accordingly.
The SBI branch of MNNIT was earlier having two gates which
customer had to cross before entering in the branch which has to
be reduced to just one thereby:
SBI has this year increased its market share in Allahabad upto the
extent of Rs.50 crore which obviously it took away from the grab
of other banks which become a live example of beating the
competition
Conclusion:
www.indianbankinginsdustry.com/pdf
www.statebankofindia.co.in
www.rbi.org.in/annualreport/09-10.doc
www.emeraldinsight.org/sbicasestudy.doc
www.wininsight.org/strategyformulation.pdf