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”.

Functions of bank management
Planning
Organising
staffing
directing
coordinating
controlling
FUNCTIONAL AREAS OF BANK
MANAGEMENT
Deposit Mobilisation
Financial Management
Credit Management
Profit Evaluation
Liquidity Management
Investment Management
Marketing Management
Portfolio 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 set-up
Commercial Banks
1. High Degree of
Departmentation
2. Regional or Zonal
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 important
recommendations are given by the Banking
Commission:
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,
Organising Principles of SBI
Lean and
integrative
corporate
centre
Targeted
Business
Units
Senior
Management
Forums
Business Group at Corporate
Level
I.
Corporate Banking Group- The group
consists of three Strategic Business
Units. 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