ORGANISATIONAL STUDY

DEEPAK KUMAR REG. NO. 11NPCMA026

INTRODUCTION
MEANING OF ORGANISATION

Organisation is derived from the word organism which means organisation is an arrangement for an internal administration of the enterprise. It is mechanism of management by which group performance is achieved for the realization of objectives through definition and division

of activities, responsibility and authority.

Organisation is the process of identifying and grouping work to be performed, defining and delegating responsibility and authority and establishing relationship for the purpose of enabling people to wore most effectively together in accomplishing objectives

SCOPE OF THE STUDY

The study is limited to State Bank of Mysore. The study gives the overview of organisational arrangement of the State Bank of Mysore. The department which are visited during study are

marketing, finance, HR, Purchase and sales. Information is collected from employees of State
Bank of Mysore and its customers.

OBJECTIVE OF STUDY
1. To study the organizational structure of SBM. 2. To identify the various departments of the SBM. 3. To study the day to day activities of the SBM and find the problems faced by the various departments. 4. To know the financial status of the Bank 5. To study about strength, weakness, opportunities

DATA COLLECTION METHOD

The methodology used in this study involves the collection of data through various ways such as primary data and secondary data. Primary data

Primary data is collected from primary sources the data collected through interview with various department heads and officers of the firm. With the help of managers and employees in various departments it helps to get a clear idea about the organization and its day to day activities. Secondary data o Publications of a wide variety provide a good deal of external secondary data. News paper, magazines, technical journals, trade publications, directories, government publications, committee reports, these are sources of external secondary data. Secondary data can also be purchased in some cases from commercial marketing research services.
Various types of written documents within the organization magazines and internet

a) Rate list of various loan b) Catalogues etc c) Internet and websites

LIMITATIONS OF STUDY
1. The study is limited to the study of the organisational structure of SBM. 2. Very less time is available for study, i.e., 4 weeks. 3. Lack of prior experience. 4. There is a possibility of an exaggerated claim and there was very less time for management to share ideas 5. The study is limited to the branch of SBM located at Kavalabyrasandra.

INDUSTRY PROFILE
ORIGIN :
o A Bank is a financial institution and a financial intermediary that accepts deposits and channels those deposits into lending activities, either directly or through capital markets. A bank connects customers that have capital deficits to customers with capital surpluses.

o Due to their critical status within the financial system and the economy] generally, banks are highly regulated in most countries. Most banks operate under a system known as fractional reserve banking where they hold only a small reserve of the funds deposited and lend out the rest for profit. They are generally subject to minimum capital requirements which are based on an international set of capital standards, known as the Basel Accords.
o The oldest bank still in existence is Monte dei Paschi di Siena, headquartered in Siena, Italy, which has been operating continuously since 1472. Banking Sector in India: o Banking in India originated in the last decades of the 18th century. The first Banks were The General Bank of India, which started in 1786, and Bank of Hindustan, which started in 1790; both are now defunct. The oldest Bank in existence in India is the State Bank of India, which originated in the Bank of Calcutta in June 1806, which almost immediately became the Bank of Bengal. This was one of the three presidency Banks, the other two being the Bank of Bombay and the Bank of Madras, all three of which were established under charters from the British East India Company. For many years the Presidency Banks acted as quasi-central Banks, as did their successors. The three Banks merged in 1921 to form the Imperial Bank of India, which, upon India's independence, became the State Bank of India.

GROWTH
The worlds second largest populated country, India is the apple of the eye for the world now.

The world economies are seeing it as their potential market. This has been going on since quite some time now, ever since 1991 reforms of liberalization, globalization and privatization. Indian markets in urban areas have grown appreciably and are on the verge of saturation, so

corporate have started tapping rural markets, since more than 60 per cent of Indias population
lives in rural areas.

MAJOR PLAYERS OF THE BANKING INDUSTRY

State Bank of India
HDFC Bank Axis Bank Punjab National Bank Bank of Baroda ICICI Bank Limited Union Bank of India City Bank Canara Bank

CHALLENGES OF THE BANKING INDUSTRY

Developing countries like India, still has a huge number of people who do not have access to

Banking services due to scattered and fragmented locations. But if we talk about those people Who are availing banking services, their expectations are rising as the level of services is increasing due to the emergence of Information Technology and competition since, foreign

banks are playing in Indian market, the number of services offered has increased and banks
have laid emphasis on meeting the customer expectations now, the existing situation has created various challenges and opportunity for Indian Commercial Banks In order to encounter the general scenario of banking industry.
Challenges and opportunities lying with banking industry of India such as:
Management of Risks: Employees Retention: Employees Retention:

COMPANY PROFILE

Name of the company :State Bank of Mysore

Type of Organization: Government sector . Year of established: 1913 - The Bank was established as 'Bank of Mysore Ltd.', on 19 May, and commenced its business on 2 October 1913, under the patronage of His Highness the Maharaja of Mysore, with an authorized capital of Rs.20.00 LAKHS.

1953 - During the year, the Bank was appointed as an Agent of Reserve Bank of India to

conduct Government business and treasury operations.

1959 - With effect from the 10th September, the Bank was constituted as State Bank of Mysore

as a Subsidiary of State Bank of India, under State Bank of India [Subsidiary Banks] Act, 1959 enacted through an Act of Parliament, [Act No. 38 of 1959s].

 MISSION AND VISION Vision:

Working for better tomorrow Mission:

o o A premier commercial Bank in Karnataka, with all India presence, committed to provide

consistently superior and personalized customer service backed by employee pride and will to
excel, earn progressively high returns for its shareholders and be a responsible corporate citizen contributing to the well being of the society.
Quality policy: o All the officers have certain financial powers and administrative powers depending upon their

positions. The delegation of financial powers of various grades of officials is decided by the Central Board which is revised from time to time, depending upon the organizations

requirement and also Government / RBI guidelines. The concerned sanctioning authority takes
a decision to sanction a loan or otherwise on merits of each proposal

PRODUCT PROFILE
State Bank of Mysore offers its products and services in domains like
Personal Banking NRI Services. Agriculture. International. Corporate. SME. Domestic treasury

ORGANISATION STRUCTURE OF SBM

FUNCTIONAL DEPARTMENTS
FINANCE DEPARTMENT
OPERATIONS MANAGEMENT DEPARTMENT MARKETING DEPARTMENT TREASURY DEPARTMENT TECHNOLOGY DEPARTMENT

FINANCE DEPARTMENT
Meanings: o Financial Management means planning, organizing, directing and controlling the financial

activities such as procurement and utilization of funds of the enterprise. It means applying general management principles to financial resources of the enterprise. Finance is lifeblood of business. It is rightly termed as the science of the money.
Definition: o The network of institutions and laws that provide a great variety of financial services. At its

most basic, banking involves an institution holding money on behalf of customers that is
payable to the customer on demand, either by appearing at the bank for a withdrawal or by writing a check to a third party. The banking system also provides loans to businesses and individuals. Many banks also perform other services for a fee; for instance, they offer certified

checks to customers guaranteeing payment to third parties. In some countries, they may
provide investment and insurance services. With the exception of Islamic banks, banking almost always involves the payment of interest on deposits and reception of interest on loans. Banking is regulated by the laws and central banks of individual countries.

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Need of finance department:

o We need finance for production of goods and service as well as their distribution. The affiance

of the production and marketing operation is directly influenced by the manner in which the affiance function assumes an important role in the business system and it should be given

equal importance, as with production and marketing function It has been said that business
man take money to make money.

Finance Departmental Structure

Objectives of Financial Management

The financial management is generally concerned with procurement, allocation and control of

financial resources of a concern. The objectives can be To ensure regular and adequate supply of funds to the concern. To ensure adequate returns to the shareholders which will depend upon the earning capacity,

market price of the share, expectations of the shareholders?

To ensure optimum funds utilization. Once the funds are procured, they should be utilized in

maximum possible way at least cost.

To ensure safety on investment, i.e., funds should be invested in safe ventures so that adequate

rate of return can be achieved.

To plan a sound capital structure-There should be sound and fair composition of capital so that

a balance is maintained between debt and equity.

 Functions of Financial Management

Choice of sources of funds: For additional funds to be procured, a company has many choices

likeo Issue of shares and debentures

o Loans to be taken from banks and financial institutions o Public deposits to be drawn like in form of bonds. o Choice of factor will depend on relative merits and demerits of each source and period of

financing.
Investment of funds: The finance manager has to decide to allocate funds into profitable

ventures so that there is safety on investment and regular returns is possible.

Disposal of surplus: The net profits decision has to be made by the finance manager. This can

be done in two ways:

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Dividend declaration - It includes identifying the rate of dividends and other benefits like

bonus.
Retained profits - The volume has to be decided which will depend upon expansion,

innovation, diversification plans of the company.

Management of cash: Finance manager has to make decisions with regards to cash

management. Cash is required for many purposes like payment of wages and salaries, payment of electricity and water bills, payment to creditors, meeting current liabilities, maintenance of enough stock, purchase of raw materials, etc.
Financial controls: The finance manager has not only to plan, procure and utilize the funds

but he also has to exercise control over finances. This can be done through many techniques like ratio analysis, financial forecasting, cost and profit control, etc.

OPERATIONS MANAGEMENT DEPARTMENT

Operations management refers to the administration of business practices to create the highest

level of efficiency possible within an organization. Operations management is concerned with converting materials and labour into goods and services as efficiently as possible to maximize the profit of an organization.
Need for the department: we need this department to know about the manpower profile,

training and industrial relation.

Operations Department is headed by General Manager. Basically it takes care of the Human

Resources needed for them.

They are divided into three major groups

1. Manpower Profile 2. Training 3. Industrial Relation

Operation Management Departmental Structure:

chief operating officer

operations manager

client administrations

quality assurance

service delievery

on- call

language quality control

MARKETING DEPARTMENT
Definition of marketing: o Marketing is the activity, set of institutions, and processes for creating, communicating,

delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.
Meaning of marketing:

o Marketing means human activity taking place in relation to markets. Marketing means

working with markets to actualise potential exchanges for the purpose of satisfying human needs and wants.
Need of marketing department: To increase the product growth, advertise their

products, implement new marketing strategies for competing with other banks.

Marketing strategies of SBM:

Marketing Initiatives: o Focused marketing efforts Public Relations Organisational Developmenent: o Branch Expansion o Business Intelligence department o Implementation of Official Language Policy: Problem of marketing department

Lack of advertisement of product

o No separate department for marketing o Lack of involvement in marketing for their product

o No special strategy for marketing

TREASURY DEPARTMENT
A place where the funds of the government, of a corporation, or the like are deposited, kept, and disbursed.
As part of the Bank`s BPR initiative, a Mid Corporate Central Processing Centre (MCCPC) was set up during February 2010 in our Bank for Bangalore centre, with a view to pool specialized credit skills, to standardize the credit processes, to improve the quality of assets and to provide speedy credit delivery and reduction in turnaround time (TAT).

Need for treasury department: The primary functions of a treasury department at a bank involve asset/liability management. A substantial amount of time is invested by the department in forecasting net interest income (NII) and measuring the bank's interest rate risk (IRR) or sensitivity to changes in prevailing interest rates. The statistics generated by the department are typically fed to the bank's Asset and Liability Committee (ALCO), the group which is responsible for establishing guidelines for risk taking and balance sheet funding. The treasury department generally performs other related functions, such as managing the bank's reserve and risk capital requirements, funding the bank's balance sheet through a number of creative strategies (this is typically done in conjunction with the bank's corporate investments unit), and managing the institution's insurance requirements - property and casualty, directors and officers, and BOLL (Bank Owned Life Insurance).

Treasury Departmental Structure:

TECHNOLOGY DEPARTMENT
The branch of knowledge that deals with the creation and use of technical means and their

interrelation with life , society , and the environment ,drawing upon such subjects as industrial arts , engineering , applied science , and pure science .

Need of technology departments: to find out which technology can be providing good and

fast service to customer as well as for the bank activities.

Services: o Internet Banking: o Automated Teller Machines (ATM o Mobile Banking Service

Technology Departmental structure:

SWOT ANALYSIS

Strengths

1. Good Brand Name because it is related to central government and people can trust the Bank. They give good facilities to customers. 2. Nationwide networking of branches. 737 branches (as on 31.03.2012) In every state and in every district there are SBM branches. The total work done by using internet. Online facility is also available in SBM. 3. Multiple product & service. It is related to all SBM where you get the facility of taking money in

any ATM. It provides online banking also

4. More number of customers all over the World because everyone trusts SBM. 5. Internet Banking & recent trends of Banking. It provides online Banking where you can transfer money from one account to another account. You can use for shopping purpose etc. SBM has got adequate ATMs throughout India.

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6. Good Information security policy.
7. Huge public deposit money and backup from government. 8. Head Quarters is located in Bangalore. 9. Excellent Customer Service (E- banking, Mobile banking, ATM facility),

Customers can lodge a complaint Online by just filling a online form which may not take more time. The
Customer can apply 10. Security of the Customers. 11. Interest rate & service charges laid by the SBM is low compared to many private banks.

12. Strong domestic market position sustaining reach and customer confidence.
13. Strong capital position helping pursue growth i

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Weakness:
1. No separate branch for SBM life and SBM mutual Fund. It depends on SBI. 2. Low awareness of the products offered among the people. 3. Comparing to some private Banks, SBM has less modernization of infrastructure.

4. Since more employees are working, the interference of trade union is yet another
constraint. 5. Bank is not open for 7 days in a week. 6. Marketing & Advertisement strategies adopted by bank is low compare to private sectors. 7. Susceptible to political interventions. 8. Its interdepartmental coordination is very less.

 Opportunities:

1. Large potential Market due to pickup in economic activity.

2. Introduction of innovative product which will lead to higher growth. 3. Massive marketing and Massive customization. 4. Chances for increasing more investment avenues and designing various schemes for the customers.

Thereby, all the people all over India will be a customer one way or other.
5. SBM could be the highest beneficiary from the increasing adoption of E-transactions. 6. Investments in information technology will decrease transaction costs of SBM. 7. New business initiative will expand the market share and increase the revenues. 8. Growth in general insurance industry will help increasing the market
Threats:

1. Huge competition due to private Banks and lot of competitors. They provide lot of facilities comparing to government banks. 2. Entry of new private sectors due to globalization and privatization. 3. Economic recession prevailing all over the World. 4. Political instability and interference in Administrative affairs. 5. Global economic slowdown could reduce demand for banking services in India

Financial Analysis
INTERPRETATION:
From the above statements it can be concluded that earnings of the company have been

increased from 2010 to 2012 by to 1610.15cr, Hence there is a constant increase in earnings of the company.
Outgoings or expenditure of the company have been increased constantly from 2010 to 2012

that is 3538.87cr, 4033.63cr and 5225.67cr, which indicates there is more cash outflow from the company.
Net Profit/loss 2010 was 367.65cr. and in 2011,increased by 54.86cr and in 2012 it decreased

by 78cr.
Number of equity dividend was 36 cr. in 2010 and in 2011, it increased by 10.80 cr. And it

remains constant in 2012.

Thus there is overall increase in financial position of the company; if the company

concentrates on the expenditure or the outgoings (like branch expansion, adopting strategies) of the company it can improve its financial position.

marketing

FINDINGS, SUGGESTIONS AND CONCLUSION

FINDINGS: Organisational structure of STATE BANK OF MYSORE is vertical, managing director is

head of the bank then chief general manager, general manager of various departments like treasury, technology, production and development to subordinate or lower division

clerk.
Number of departments found out, are finance, operation management, marketing,

treasury, and technology departments.

Problem identification:

a) Problem identification is that lack of advertisement of their product, no separate department for marketing and lack of interest for marketing their products. b) No separate branch for SBM life and SBM mutual Fund. It depends on SBI.

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..
state

Strength of SBM : good brand name it is related to central government and people can trust

the bank

a) Nationwide networking of branches. 737 branches (as on 31.03.2012) In every

and in every district there are SBM branches.

b) Internet Banking & recent trends of Banking. It provides online Banking where you can transfer money from one account to another account. You can use for shopping purpose etc. SBM has got adequate ATMs throughout India. c). Excellent Customer Service (E- banking, Mobile banking, ATM facility),
Opportunities:

a) Growth in general insurance industry will help to increase the market share b) Introduction of innovative product which will lead to higher growth.

 Threats:

a) Huge competition b) Economic recession prevailing all over the World.

o interpretation

Earnings of the company have been increased from 2010 to 2012 by to 1610.15cr,
there is a constant increase in earnings of the company.

Hence

Outgoings or expenditure of the company have been increased constantly from 2010 to 2012

that is 3538.87cr, 4033.63cr and 5225.67cr which indicates there is more cash outflow from
the company.
o

Net Profit/loss 2010 was 367.65cr. and in 2011,increased by 54.86cr and in 2012 it decreased by 78cr.

Number of equity dividend was 36 cr. in 2010 and in 2011 ,it increased by 10.80 cr. And it remains constant in 2012.

SUGGESTION & CONCLUSION

Suggestions:

They implement good marketing strategies so that demand for their product will increase.
There is also need of expansion of branches of SBM and ATM facilities in rural areas as well. There should be separate department for SBM life and SBM mutual Fund. They should also implement innovative product which can increase the revenue of SBM. They can also introduce flexible insurance policy for the poor people, students.
Conclusion:

Being a huge government sector central Bank SBM. in association with parent SBI along with

other subsidiary Banks it has got enormous resources at its disposals to give wide range of
services to the customers & able to meet its peer competitors successfully & achieve its objective & Vision of Working For Better Tomorrow & Satisfy their customer.