At STATE BANK OF INDIA Regional business office, Gaya

SBI was founded in Calcutta as Bank of Calcutta on 2nd June 1806. The Bank was nationalized in 1955 and was renamed as State bank of India. It is the oldest bank of Indian sub-continent SBI is a public sector banking organization in which government of India is the biggest shareholder. SBI is the largest Indian banking and financial company with its headquarter in Mumbai.

SBI group have over 16000 branches and largest banking network in India with asset base of $352 billion and deposit of $285 billion. GUINNESS BOOK OF WORLD RECORD says that 56 million transactions are happening per day in this bank all over the world, is definitely an achievement. SBI is the 29 most reputed bank in the world according to Forbes.

Business Process Reengineering involves changes in structures and in processes within the business environment. The fundamental rethinking and radical redesign of the business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service and speed. Business process re-engineering is also known as business process redesign, business transformation, or business process change management.

The entire technological, human, and organizational dimensions may be changed in BPR. Information Technology plays a major role in Business Process Reengineering as it provides office automation; it allows the business to be conducted in different locations, provides flexibility in manufacturing, permits quicker delivery to customers and supports rapid and paperless transactions. In general it allows an efficient and effective change in the manner in which work is performed.

Market conditions and expectations of customers had changed substantially mainly due to entry of New Generation Private Sector banks & Foreign Banks. These banks were offering world class services to the high end customers and were using state of the art technology.

On the contrary, SBI processes have remained the same and the market share was going down as a result to compete with the growing globalization and competition, to increase the market share in the high net worth customers, to improve the customer service quality and the most important to enhance the productivity and profitability the bank had to introduce BPR.

Changes in the World of Work

Functional department Simple task (division of labour) Controlled people( by management)

Process teams Empowered employee Multidimensional work

Training of employee Compensation for skill and time spent

Education of employee Compensation for result

Pay raises based on promotion and seniority

Low pay plus high performance related bonuses

Advancement based on ability

Advancement based on performance

Protective organisational culture

Productive organisational culture

Managers supervises and control

Managers coaches and advice

Hierarchical organisation structure

Horizontal structure

Separation of duties and function

Cross functional teams

Mass production

Mass customization

To identify the factors in the business process of the banking industry which affect customer satisfaction level, and develop understanding about their implications and relative importance. To find out how BPR has affected the customer satisfaction level in the public sector banks and whether BPR can be considered as a driver of customer satisfaction. To assess the impact of Business Reengineering Process (BPR) an organizational performance.

Sample universe Gaya Sample unit residential area like main road, Madagh colony, station road etc. Sample size - 100 Sampling method - convenience and judgement sampling Research study exploratory and conclusive research study Data collection- primary via questionnaire and secondary via banking website, magazines etc. Statistical tools- percentage, average and likert scaling technique.

The customer gives the highest degree of importance to transaction time (both for withdrawal / deposit and opening an account). Flexibility in bank staffs' dealings with them, banking hours, innovative service delivery system, minimum balance criteria and availability of wide range of banking products / services are areas which have lesser degree of importance in customer's mind as compared to the above. The customer gives least importance to the bank's working environment. Also customer satisfaction level has been enhanced by a very high degree with the introduction of computerised passbook updating facility and computerised teller facility.

Customers also strongly emphasized and recommended to introduce reengineered operational system so that the transaction time for opening a bank account and for withdrawal / deposit is reduced. Customers are looking for fast cycle capability and competitiveness of the banking system, which is the core objective of BPR. The customers also strongly recommended improvements on the HR aspect of business process reengineering in terms of bank employees' skill up-gradation. The customers are also expecting, though in a lesser degree of importance that banks should deliver the services in flexi-working hours through all the 7 days in a week. The present satisfaction level of the customers for their banking operations with public sector banks is just average.

Customer prefers BPR as it leads to quick processing, transparency, less paper work, simple and fast processing.

Almost all the bank staff feels that the recapitalization is a part of business process reengineering and economic reform in the banking sector. Radical changes rethink / control process, pragmatic result all are essential features of reengineering.
Business Process Reengineering affects organizational activities and structure & people. technology,

There is a considerable improvement in banking business after the introduction of business process reengineering.

In order to generate a competitive advantage, banks should make more application of Information Technology & Telecommunication (ICT) systems They should also make their branches fully computerised and ITenabled. It will be necessary to re-skill the staff members of the banks, not only in the technical aspects of banking operation but also for developing the soft skills. Most of the aim of reengineering a business performance is to redesign the existence of a business practices in order to achieve improvement in performance. Bank Managers must develop new tools, new concepts, new organisation and the new mindsets to cope with the turbulent and chaotic environments leading to continuous change. This can only be achieved through effective and efficient reengineering of their business.

Reengineering which is a situation when a business organization is transforming processes that together form a component of a larger system aimed at enabling organization to empower themselves with contemporary technologies business solution and innovations. In the context of changing customer expectations, technological discontinuities, increasing environmental uncertainties, business managers have a big challenge of making the right strategic choice and setting their strategic priorities in order to allocate their resources to different functions in an efficient manner for business to success. Business Process reengineering entails the critical analysis and radical redesign of existing process to achieve breakthrough improvements in organizational performance.