Abhishek Singh

Introduction

State Bank of India (SBI) is that country's largest commercial bank Largest branch network, with more than 13,500 branch offices throughout India, staffed by nearly 220,000 employees SBI is also present worldwide, with seven international subsidiaries in the United States, Canada, Nepal, Bhutan, Nigeria, Mauritius, and the United Kingdom SBI has been forced to revamp its operations since competition was introduced into the country's commercial banking system SBI also has taken advantage of the deregulation of the Indian banking sector to enter the bancassurance, assets management, and securities brokering sectors In 2003, SBI reported revenue of $10.36 billion and total assets of $104.81 billion.

Key Dates

1806: The Bank of Calcutta is established as the first Western-type bank. 1809: The bank receives a charter from the imperial government and changes its name to Bank of Bengal. 1840: A sister bank, Bank of Bombay, is formed. 1843: Another sister bank is formed: Bank of Madras, which, together with Bank of Bengal and Bank of Bombay become known as the presidency banks, which had the right to issue currency in their regions. 1861: The Presidency Banks Act takes away currency issuing privileges but offers incentives to begin rapid expansion, and the three banks open nearly 50 branches among them by the mid-1870s. 1876: The creation of Central Treasuries ends the expansion phase of the presidency banks.

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1921: The presidency banks are merged to form a single entity, Imperial Bank of India. 1955: The nationalization of Imperial Bank of India results in the formation of the State Bank of India, which then becomes a primary factor behind the country's industrial, agricultural, and rural development. 1969: The Indian government establishes a monopoly over the banking sector. 1972: SBI begins offering merchant banking services. 1986: SBI Capital Markets is created. 1995: SBI Commercial and International Bank Ltd. are launched as part of SBI's stepped-up international banking operations. 1998: SBI launches credit cards in partnership with GE Capital. 2002: SBI networks 3,000 branches in a massive technology implementation. 2004: A networking effort reaches 4,000 branches.

Literature Review of HR Policies

Safe, Healthy and Happy Workplace Open Book Management Style Performance linked Bonuses 360 Degree Performance Management Feedback System Fair Evaluation System for Employees Knowledge Sharing Highlight performers Open house discussions and feedback mechanism

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Reward Ceremonies Delight Employees with the Unexpected Effective work force Compensation Job satisfaction Morale boosting

Public Sector Banks HR Threats

There is a realization that skill development is extremely important for staff retention as well as the quality of manpower Banks are keen to tie up with external training agencies for in-house training Some have even roped in top universities and business schools to help them in their initiative Others have their own staff colleges for training employees Survey by FICCI shows that 81.25% feel that the current economic situation is in fact advantageous for them, as it provides them with access to quality manpower

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62.50% of banks in their survey also feel that they have sufficient autonomy to offer attractive incentive packages to employees to ensure their commitment levels

HR Initiatives

Citizen SBI, aimed at attitudinal change and transformation of its employees through a series of human resources activities The project which was designed by Illumine Knowledge Resources over the last 18 months will be implemented across all SBI staff over the next 2 years SBI, which had launched project Parivartan in 2007 - a 100-day programme to increase communication skills of its managers SBI, which had launched project Parivartan in 2007 - a 100-day programme to increase communication skills of its managers, sees the new project a extension of the previous one

Analysis & Recommendations

In the survey of HR practices at the State Bank of India , it was found

that, the employees of the bank are only partially satisfied with the HR practices of the bank. Bank need to more work upon the policies and practices which are followed. There should be proper grievance redressal system for that e.g. Bank can install complaint boxes in each of its branch with the complaints redressed on a weekly basis. But in some fields it has been interpreted that it needs more proper training and development practices for the improvement work in the work of the employees. More schemes of training like Parivartan launched in 2007 could be launched for proper training and development of employees. Banks can hire faculties from top colleges for improving the overall skills of their employees. It has also found out that the allowances and remuneration which are paid to the employees are less and not sufficient for them. The evaluation systems of the performance of the employees are not properly working as many employees partially agree to the fair of the evaluation system. Bank could introduce performance based incentives structure e.g. introduction of ESOPs (Employee Stock Option Plan).This will not only increase motivation among employees but also increase the overall output of the bank.

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The bank do not have healthy, safe and happy

working environment. Because of Financial Inclusion the branches are not situated only in urban centres but also in the remote areas. So bank should take proper care proper care of its employees in these areas. Some extra allowances should be introduced as an incentive for the people working in these areas. As far as terminal benefits are concerned bank is proving to be far better than its counterparts( be it private or public sector banks) since it is giving three way benefits i.e. pension, provident fund & gratuity to its employees

Thank You