Organisation Study

at

Vijaya Bank Head Office, Bangalore

By: Guruprasad Upadhya

Banking IndustryBanks are the financial institutions, which sustain and stimulate business. Finance

is the fundamental foundation of every business activity and banks of different types

furnishes it. Banks are therefore called as reservoirs of money and credit available

for productive investment in industry and commerce

Banking in India in the modern sense originated in the last decades of the 18th century. The

first banks were Bank of Hindustan (1770-1829) and The General Bank of India, established

1786 and since defunct. The largest bank, and the oldest still in existence, is the SBI

Banking structure

Vijaya Bank

Founder: By late Shri A.B.Shetty

Founded: 23rd October 1931

Scheduled bank: 1958

Present Chairman and ED: Shri V. Kannan, Chairman & Managing Director

Shri K.R. Shenoy, Executive Director

Head office: Bangalore

Purpose of establishment: To promote banking habit, thrift and entrepreneurship among the

farming community

At Present: The bank has 1512 branches, 1528 ATMs, 13500 Workforce, with Centralised

Banking Solution (CBS), Business level has crossed Rs. 2 lakhs crore mark,

aggregate deposits crossed Rs. 1 lakh crore mark.

Mission: Emerge as prime national bank backed by modern technology, meeting customer aspiration with professional banking services and sustainable growth, contribution to the national development

Vision: providing integrated services to customers from all segments, leveraging on technology and human resources, adopting the best accounting and ethical practices and fulfilling corporate and social responsibilities towards all stakeholders.

Organisation Structure:

Board of Directors

Chairmen & MD

Executive Directors

General Managers

Departments

(Marketing, HRD, Banking etc.)

24 Regional

1528 Branches

Products and services:

value added services, Card services, Forex, NRI Services, Loans & Advances, Deposit Schemes

Best practices: Corporate Social Responsibility, Jnana Jyothi Literacy & Credit Counselling Trust (JJFLCCT), Vijaya Rural Development Foundation (VRDF)

Functional departments

Marketing Department : various promotional activities like advertisement and promotional campaign, carnival

Credit Department: recovery, sanction loans to retail, decisions regarding loans sanctions

Accounts Department: Book keeping, managing various accounts

Human Resource and personnel Department: recruitment, training, retaining, payrolls, performance management

IT Department : managing various services like mobile banking, net banking, up gradation, data security

Risk Department: safeguarding from various risk like credit, market, operational Risk

Vigilance Department: checking frauds, investigating suspicious accounts, identifying abuse of authority

Treasury Department: management of asset/liability

7S Frame workStrategy : Bank aim at effective financial inclusion and aim at financial empowerment also reaching

banking services to rural masses, implementing effective Information Technology in bank

Structure: Vijaya bank follows decentralised form of organisation structure, i.e. daily operations and decision making responsibilities are delegated by top management to middle and bottom level managers within the organisation allowing top management to focus more on major decisions.

System: . Various departments and branches are interlinked through Core Banking Solution (CBS). The bank has implemented Human Resources Management System that includes training, payroll which will help the bank in accessing its human resources.

Shared value: adopting the best accounting and ethical practices and fulfilling corporate and social responsibilities towards all stakeholders. Through team work and customer focus i.e. serve the customer to their satisfaction with following ethical codes and policies of the bank.

Staff: The staff strength of the Bank as on 30.06.2014 figured at 13699, which consisted of 6540 Officers, 4348 Clerks & 2811 Sub-staff. The bank has imparted training to its employees through some reputed external training institutions in certain specialized areas like credit, FOREX, treasury management, risk management, HR, Marketing, etc. for achieving productivity and quality in work

Style : task-oriented leadership style , people oriented leadership style

Skills: The bank has skilled employees with technical and non technical staffs, officers, mangers, etc. The bank has recruited professionals like CA/ICWA/CS/MBA for ensuring good standard banking process

Problem analysis

Problem statement: To analyse difficulties faced by the customer in using mobile banking

services and mobile application of Vijaya Bank and the problem of limited message inbox

storage capacity including mobile banking awareness amongst its customers

Findings

Vijaya Bank’s V-Mobile Banking is not available overseas

The V-mobile banking inbox capacity is only restricted to 5 messages

The service is available only in Hindi and English and no other regional

language

Most of the customers don’t rely on transferring the funds through mobile

banking

The customer using 2G services experiences delay in the services when

compared to 3G service users

Misunderstandings between customers and Vijaya bank due to delay in services

because of the service providers (Telecom).

Transaction for fund transfer is limited to 3 per day

There may be occurrences of server busy from telecom operators it may effect

the delay in services.

Lengthy procedure for fund transaction

Rural customers are not aware of mobile banking

Customers are afraid of hackers though the bank is using all kinds of security

measures

Less promotional activities

Suggestions

The bank can maximise its promotional activities regarding

Mobile Banking among rural and semi-urban areas through

various TV advertisement

Inbox limit can be increased i.e. due to the limited inbox the

customers can be discouraged for using it

The bank should provide data recovery options if messages get

deleted from inbox

Through its financial literacy campaign it can also literate the

people through practical usages of mobile banking. This can be

done through its financial inclusion plan

It should mentions or give instruction about the charges that

might occur from operator to avoid misunderstanding

Various other regional languages can be added to attract more

user

The bank should try to minimise lengthy procedure for fund

transfer

Conclusion

The success of Vijaya Bank in achieving its growth involves soundness of

proposal/project from technical, financial, managerial, commercial and

economical aspects and then taking the credit decision

Vijaya bank has substantial progress in rural areas in providing its various

services compared to other banks.

The power and authority have been decentralized wherever it is needed

so that the manager has the require power to grant loans on a case basis

at the earliest.

Vijaya bank has efficient Information Technology

Customer relationship system is effective and efficient

Financial growth in the bank is achieved