Page 135 - DMGT510_SERVICES_MARKETING

Services Marketing

Notes had almost all the powers of the Chairman and Managing Directors of a nationalized
bank and usually headed for an MD’s post next. Every Module was headed by a
Deputy General Manager (DGM) who was assisted by a team of four Regional Managers
(RM), each heading a region. There were some branches which were so big that it
required very senior personnel who were equivalent in rank to the RMs; they came
under the direct control of the DGM. Thus Jabalpur Main Branch was headed by a
Chief Manager, who was in the rank of a RM and came under the control of the DGM,
Jabalpur Module. With this structure there was greater empowerment, more focus
and the issues were sorted and solved at the LHO level.
 External Customers and the Branch: Every branch was divided according to the type
of business that they handled. In other words, division at the branch level was by the
types of customers that they dealt with. Thus a typical SBI branch was divided into
the following divisions:

 Personal Banking Division (PBD) which dealt with individual customers and
their personal banking needs like deposits, cash withdrawals, fixed deposits,
remittances, loans against deposits, etc.
 Small Industries and Business Division (SIB) which dealt with the needs of the
small business like cash credits, overdrafts, loans, etc. In the eighties, any
enterprise whose turnover was less than 20 crore rupees was termed Small
Business.

 Commercial and Institutional Banking Division (C&I): This dealt with the
banking needs of large institutions (like IIM-A) and corporations (like Indian
Oil Corporation). Their banking needs would include term loans, working
capital, non-fund based business like Letters of credit and Bank Guarantees,
etc. Initially, a Foreign Exchange Cell functioned under C&I Division, handling
all Forex business. It was merged with a new nomenclature: Institutional
Banking Division (IBD) and Commercial Division. There were exclusive Service
and Commercial Branches to cater to the cheque collection and clearing
businesses.
 Agricultural Banking Division (ABD) handled all banking needs of the farmer
like crop and farm equipment loans, savings and fixed deposits etc. There
were exclusive Agricultural Development Branches (ADBs) to only cater to
the needs of the farmers, situated in agriculturally well developed areas.

 Accounts Division handled all the administrative functions of the branch
including Cash Section.
Exhibit 7.2: Different divisions in a typical branch of SBI: Customer Orientation

Contd...

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