Their evolution was, however shaped by ideas culled from similar developments in Europe and England.

The structure of both the local trading environment and those in the relation of Indian Economy to the economy of Europe and the global economic frame work. ORGANISATIONAL SETUP AND MANAGEMENT OF THE STATE BANK OF INDIA The State Bank of India initially had an authorised capital of Rs 20 crores divided into 20,00,0000 shares of Rs 100 each. The issued and paid up capital was RS 5.65 crores divided into 5,62,500 fully paid up shares. The reserve bank of india was required to hold not less than 54 per cent of the issued capital of the bank. The issued and subscribed capital of the state bank was Rs 150 crores during 1987. During 199091 the authorised capital of the bank was raised to Rs 1000 crores and the issued, subscribed and paid up capital was increased from 150 crores to Rs 200 crores. The State Bank of India act, 1955 was amended by on ordinance in October 1955 to enable to the bank to mobilise equity funds from the public. The paid up capital as on 31st March, 2005 was Rs 5,26,29,89,000. RBI transferred its 59.73% stake in SBI to central government which involves Rs 35,531 crores, according to SBI amendment Bill 2007. The management of the state bank vests in a central board of directors. The board is headed by the chairman of the bank. Two managing directors are also members of the board. As on march 31, 2004 there were 13 other directors as members of the board. i) One director is appointed under Sec. 19(bb) being the president of the local board. ii) Four directors are elected by shareholders iii) One director represents the non-workman staff of the bank. iv) Four directors are nominated by the central government [ sec. 19(d)] v) One director represents the workmen staff of the bank vi) One director is nominated by RBI vii) One director is appointed under sec. 19(e) being nominated by the central government. Apart from the central board, there are local boards working in Mumbai, Kolkata, Ahmedabad, Hyderabad, New Delhi, Chennai, Lucknow, Kanpur, Patna, Bhopal, Bhuvaneswar, Chandigarh, Guwahati and Bangalore for the management of the branches of the state bank in their areas. The central office of the state bank is in Mumbai. STATE BANK OF INDIAS FUNCTIONS The functions of the state bank of india are defined under section 33 of the State Bank of India act. 1. The bank performs the general commercial bank functions such as accepting deposits, giving loans, providing remittances, issuing letters of credit, etc.

2. 3. 4. 5. 6. 7. 8. 9.

It acts as the agent of the reserve bank in place where there are no branches of the RBI. It acts as an agent of the registered co-operative banks. It is authorised to purchase and sell gold and silver it underwrites the issue of stocks, shares and other securties. It acts as executor or trustee for the administrator of estate on behalf of customers. It is authorised to act as an agent to the central government, any state government or to any corporation for the purpose of housing schemes. It is authorised to grant financial assistance to companies dealing in granting advances on hire purchase basis against the security of book debts. It is allowed to subscribe to the share capital, or to buy or sell shares of any banking companies in the capital market. It is also authorised to form or operate its subsidiary companies.

ACCOUNT FACILITIES PROVIDED BY SBI State Bank of India brings a wide array of banking products including sbi bank accounts catering to different needs of its customers. The sbi account palette includes savings account, current account, PPF account, salary accounts, senior citizen and retirement savings accounts, no frills account, government account, demat account, online bank account for internet banking, ATM, E-Mail, E-Pay, NRI service, mobile banking, safe deposit locker, fixed deposit, loans facilities like and many more. A) Savings Account There are millions of middle and low income group people who wish to save a portion of their earnings to meet contingencies at a future date. A person who intends to open a saving bank account should fill up a printed form supplied by the bank and submit it duly filled to the bank concerned. He/she should indicate in the application form the reference with the help of which the banker makes enquiries about the honesty and integrity of applicant. After the account is opened in the name of the customer, he is supplied with pass book and cheque book since this account is run to promote savings banks do not allow frequent withdrawals of money from the account. Withdrawals are permitted through withdrawal slips, cheques and ATM cards. Interest (at about 3.5%) is given on minimum balance between 10th and last day of the month. B) Current Account A current account is a running account. The amount is paid into and drawn out continuously from this account. This account is operated mainly by business enterprises, public bodies, corporations, industrial enterprise, trustees, etc. The customer can withdrew his credit balance any number of times or he can deposit any amount of money any number of times. Paying interest on current accounts, banks collect from enhancement some incidental charges for maintaining the account. The customer can collect outstation and local cheques, bills and any other instrument through this account.

C) Fixed Deposit Fixed deposit is a deposit with the bank for a fixed period specified at the time of making deposit. The period of deposit varies from 15 days to 120 months and the minimum period is seven days for deposits of Rs 25 lakhs and above. The minimum amount of deposit is Rs 1000. For the investor, fixed deposits give better return on money deposited and for the banker they act as a greater cushion in maintaining liquidity. It will earning more than savings bank interest. The fixed deposit earns a minimum rate of 3.5% to 10.75%. D) Recurring Deposit In the recurring deposit account, the investor pays a specified amount of every month for a stipulated period. After the lapse of the period, the amount accumulated in the account along with the interest accrued thereon will be paid back to the investor. The period of payment of the specified sum will be from one year to 10 years. As there is a regular flow of cash without frequent withdrawals, it strengthens the liquidity of the bank. E) PPF Account Central government introduced the Public Provident Fund scheme that invites investments to the fund and in return also offers income tax rebates along with interest on the investments State Bank of India offers Public Provident Fund account where you can manage your investments in PPF. F) Salary Account Managing the salary of employees and instant credit of salaries to the employees account has been made easier with SBI salary account. G) No Frills Account No Frills Account is targeted at the customers who cannot fulfill the basic requirements of State Bank of India account. There are no hassles of minimum balance maintenance and low service charges. H) Government Account State Bank of India being a sub-agent of reserve bank of india is also a coordinating agency among inter-branch dealings of central government and RBI transactions. Therefore, SBI government accounts department handles the government business undertaken by State Bank of India. I) Demat Account Opening an SBI Demat Account allows customers of the bank to get the best of Demat services that ensures fast and secure transferable securities and shares. SBI bank is a depositary participant with National Securities Depositaries Limited. SBI Demat Account form A number of documents to prove your residential and individual identity are required to be submitted along with the Demat Account opening form. Essential document includes proof of identity (copy of PAN card), proof of address (copy of passport, ration card, Voters ID, Driving License or Landline telephone bill), bank

proof (copy of pass book/ personalised cheque leaf), and recent passport size photograph. After submitting the demat account form, you will get a welcome kit, most probably within 10 business days. The welcome kit will contain a welcome letter providing details of your account, a product manual of demat services and delivery introduction slips with client master list. The demat account number will be provided to you through E-Mail or SMS if you have mentioned your mobile number and EMail ID in the application form and central depository service. State Bank of India demat service is specially introduced for those investors who are looking to trade in stocks, shares and securities. Features Safe account maintenance with security balance in electronic form Facilities to convert physical shares into electronic balances Facilitate delivery of electronic balances pertaining to market or offmarket traders. Get faster credit of security balance into your demat account for nonmonetary corporate benefits. Demat account charges Name of services Account opening form Annual maintenance charges Dematerialisation Re-materialisation Account closure Additional account statements Amount levied (Rs) Nil Rs 400 (Rs 300 for those customers who receive statements through E-Mail) Rs 35 for every request form and Rs 2 for every certificate Rs 25 for every request form Nil Rs 30 by courier and no fees by E-Mail

STATE BANK OF INDIA IN KOVILPATTI BRANCH State Bank of India Kovilpatti branch is started in the year 1956. Its Zonal office is in Madurai. Its Head Office is situated in Mumbai. It is functioning in a rented building. It is fully computerised branch since its inception of this branch. It is giving substantial portion of advance to small scale industries. It is a semi-urban branch.

ORGANISATIONAL STRUCTURE OF SBI KOVILPATTI BRANCH As on 31st March, 2010, there are 55 employees working in State Bank of India Kovilpatti branch as given below: Officers - 10, Assistants / Clerical staff - 38 Security and others - 7

The pictorial representation of the organisational structure of State Bank of India, Kovilpatti branch is given below Chief Manager of the branch

Manager (cash and accounts)

Manager (PBD)

Manager ( SIB and C & I and assistant)

Manager

Manager

Filed Officer

Assistant Manager

Assistant Manager

Assistant

Assistant [cash & Accounts]

Assistant

Subordinate staff

Subordinate staff

Subordinate staff

State Bank of India Kovilpatti Branch is headed by a chief manager, next to him there are managers for accounts, cash, small industries and small business and personal banking division (PBD). The entire office is divided into three divisions namely Accounts department, Personal department and SIB division. The cash

department and clerical department are under the control of the account. The cash department with assistant cash offices and cashiers are under the control of the cash manager.