“CHANGING CULTURE IN PUBLIC SECTOR BANKS WITH THE ADVENT OF GLOBALIZATION: A CASE STUDY OF STATE BANK OF INDIA”
ISSN: 2249- 1619
Dr. J.H.Vyas* Nishant Saxena **
In a past few years, Organizational culture has been an important theme in management and business research. Banks being significant player in the Indian economy are no exception to it. The Indian Banking sector is rapidly globalizing, making it important for Indian banks to ensure their practices match those of the best banks in the world. The role of banks is more challenging in a developing economy than in a developed economy. The Bank had to face a dramatic cultural change with these challenges. Presently, major task of the banks is to mobilize the savings of the people; create, spread the banking habit, and mobilize the country resources. An equally important function is to effectively utilize its human resource. Studies shows that organizational culture has a significant influence on employee performance. This study is based on secondary data and its objective is to understand the significant changes in culture in SBI in past few decades and examines various cultural drivers of bank’s performance. Key words: Banks, Culture, Globalization, Public Sector, SBI
*Professor, Disha Institute of Management and Technology,Satya Vihar, Vidhansabha-Chandrakhuri Marg, Raipur- 492 101 ** Assistant Professor, Disha Institute of Management and Technology, Satya Vihar, VidhansabhaChandrakhuri Marg, Raipur- 492 101 International Journal of Research in IT, Management and Engineering www.gjmr.org
ISSN: 2249- 1619
Indian banking sector is growing rapidly and is expected to enjoy a better growth opportunities in the future. Several Indian banks are pursuing global strategies as Indian companies globalize and people of Indian origin are increasing investment in India. At the same time, a large number of global banks have stepped up their focus on India. Therefore, the purpose of this study is to create a better understanding of organizational culture in banking organizations. Indian banking can be broadly categorized into nationalized (government owned), private banks and specialized banking institutions. The Reserve Bank of India acts a centralized body monitoring any discrepancies and shortcoming in the system. Since the nationalization of banks in 1969, the public sector banks or the nationalized banks have acquired a place of prominence and has since then seen tremendous progress.
The banking in India is highly fragmented with 30 banking units contributing to almost 50% of deposits and 60% of advances. Indian nationalized banks continue to be the major lenders in the economy due to their sheer size and penetrative networks which assures them high deposit mobilization. The Indian banking can be broadly categorized into nationalized, private banks and specialized banking institutions.
The liberalize policy of Government of India permitted entry to private sector in the banking, the industry has witnessed the entry of nine new generation private banks. The major differentiating parameter that distinguishes these banks from all the other banks in the Indian banking is the level of service that is offered to the customer. Their focus has always centered on the customer understanding his needs, preempting him and consequently delighting him with various configurations of benefits and a wide portfolio of products and services.
The Bank had to face a dramatic cultural change with the challenges thrown by the private sector banks which provided customer oriented services while most of the staff in SBI was not aware of the fact that the bank was losing its hold amongst the upper end market. This study attempts to look at the culture in State Bank of India and ascertain their prevailing culture and comparing the performance due to it. According to the Society for Human...