The phenomenal expansion of SBI in terms of the number of branches, their geographical dispersion, and the areas of activities, necessitated a study of the organizational objectives and structure. The study broadly defined the objectives of the bank, profit, market penetration, and position of leadership in the market. To ensure that these objectives were achieved, a total reorganization of the structure, based on market segments served by the bank, was suggested; and a budgetary control system was introduced as a supportive system. The changed organization at central, head and branch offices and the modes of policy guidelines and budget formulation have been outlined in the case.