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Union Bank of India is planning to incorporate a tier of 14 ‘Chief General Managers’in its organisation structure so that business can be controlled better in the wake of the Bank gaining heft in business following amalgamation of Andhra Bank and Corporation Bank with it.
In seeking to add one more layer in the organisational hierarchy, UBI, now India’s fifth largest public sector bank (PSB), seems to be taking a leaf out of the book of larger peer State Bank of India.
Following the amalgamation of Andhra Bank and Corporation Bank with it with effect from April 1, 2020, UBI’s total business (deposits plus advances) has doubled to about ₹15-lakh crore. “We will be at around ₹30-lakh crore (in total business) in the next four or five years. So, we need to build a structure to control this kind of business,” said the bank’s MD and CEO Rajkiran Rai G.
“We need to build an organisation structure which is futuristic, which can control business with more accountability and responsibility at each level,” he added.
New organisation structure
Once a new layer is added in the organisation structure, on an average, three or four CMGs and one or two GMs (with independent charge) report to an Executive Director (ED).
Post amalgamation, Union Bank has four EDs and 55 GMs. Of the latter, 14 will now be promoted to CGM.
“Actually, we were missing one layer in the organisation. With 10-15 departments reporting to each ED (through GMs), it becomes very difficult for him to monitor all the activities in a day. The span of control for EDs is wide. These are the issues in the present system,” explained Rai.
The UBI chief observed that under the new organisation structure, the ED (Corporate Banking) will be responsible for the wholesale business through 30-35 large corporate and mid-corporate branches. The ED (National Banking) will oversee businesses including retail, MSME and agriculture through the branches.
The ED (Strategy) will be responsible for strategy, building the organisation for the future, technology, digital, product development and human resources. The ED (Control) will keep an eye on risk management, audit, inspection, regulatory compliance and recovery.
Unlike the other PSBs, SBI, which had total business of about ₹54.13-lakh crore as of December-end 2019, has three more tiers — CGMs, Deputy Managing Directors and Managing Directors — between GM and Chairman. In PSBs, GMs report to EDs.
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