Wednesday, December 29, 2010

SBI in News

I was watching NDTV 24x7 yesterday morning and seen a news item on GOI working for appointment of a successor to the incumbent Chairman of SBI.  Shri OP Bhatt would be retiring in March 2011 after about five years successful tenure as Chairman of the Bank leading the bank to greater heights with several innovative reforms and maintaining the market leadership.  Interestingly, a recent survey of best banks in India conducted by Business Today does not reckon SBI as one among the top-10 (if not the top most).  In the last seventeen years, only once that too at no. 10 its name appeared while in all other years / positions there have been several Public, Private (Old or New) and Foreign Banks finding their place.  I expressed my view to the Editor in a mail that 'looks like to be the biggest is a curse; while small seems to be beautiful'.  After all, it is a game of numbers and averages and so the smaller banks could throw up high averages!

Coming back to the Organisational structure of SBI, it is the only bank in our country with a Chairman, 2 Managing Directors and over a dozen of Deputy Managing Directors at the top.  All these are positions at least more superior to CMDs of different public / private banks.  GOI seems to be considering adding two more Managing Directors in order to handle large size business of the bank.  Of the lot of DyMDs, five of them are heading the Associate Banks in Bikaner & Jaipur, Hyderabad, Mysore, Patiala and Travancore (Saurashtra and Indore were already merged with SBI).  The news is that even though there are two MDs in service, because they have less than two more years of service ahead of them, GOI shortlisted a few names of senior Dy MDs like Pratik Chaudhary, Hemant Contractor and others for the post of Chairman.  The exact name would be finalised before March 2011 so that the giant bank continues to have its leader in place.

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