In today s changing scenario money has become a vital part of each and everybody s l ife.

But people now, not only earn and simply spend money, they also make a well planned budget on how to earn money from different resources including their re gular source of income, how to implement the amount on regular expenses, and whe re to invest these rest of the earnings so as to provide him a secure and a sust ainable future with decent earning. Thus we can see that financial management ha s become a part of each and everybody s life. While the above point of view was with respect to an individual, but the same al so fits into the criteria of an organization, but in a much larger scale. And th us here comes the need of a finance manager whose sole purpose is to cater to th e need of the organization regarding financial planning and decisions. As State bank of India, a financial institution whose work portfolio comprises o f money and finances in great extent, thus a role of a Finance manager is a cruc ial one in the SBI. The duties of financial managers vary with their specific ti tles, which include controller, treasurer or finance officer, credit manager, ca sh manager, and risk and insurance manager. The duty of a finance manager also v aries as the work environment changes from Head offices and Corporate Offices to Branch and Customer Service Points (CSP). In Head offices or top management the finance manager direct the preparation of financial reports that summarize and forecast the organization's financial position, such as income statements, balan ce sheets, and analyses of future earnings or expenses. While in Branches or in lower level the managers of financial institutions administer and manage all of the functions of a branch office, which may include hiring personnel, approving loans and lines of credit, establishing a rapport with the community to attract business, and assisting customers with account problems. Following are the main functions of a Financial Manager: 1. Raising of Funds In order to meet the obligation of the business it is important to have enough c ash and liquidity. A firm can raise funds by the way of equity and debt. It is t he responsibility of a financial manager to decide the ratio between debt and eq uity. It is important to maintain a good balance between equity and debt. As the main function of a bank according to its definitions is to accept deposits and to provide financial assistance to public, so the manager must have an eye to ha ve sufficient deposits in branch so as to cater to demands of the public. The de posits are in way of fixed deposits or long term liabilities or deposits in savi ng accounts known as short term liabilities. 2. Allocation of Funds Once the funds are raised through different channels the next important function is to allocate the funds. The funds should be allocated in such a manner that t hey are optimally used. In order to allocate funds in the best possible manner t he following point must be considered The size of the firm and its growth capability Status of assets whether they are long term or short tem Mode by which the funds are raised. These financial decisions directly and indirectly influence other managerial act ivities. Hence formation of a good asset mix and proper allocation of funds is o ne of the most important activities. One of the important aspects of SBI is to l end money to people. Thus it is necessary to maintain a balanced portfolio of lo ans, both in Long term and short term in nature. The loans provided to public ar e actually termed as assets. 3. Profit Planning Profit earning is one of the prime functions of any business organization. Profi t earning is important for survival and sustenance of any organization. Profit p lanning refers to proper usage of the profit generated by the firm. Profit arise s due to many factors such as pricing, industry competition, state of the econom

y, mechanism of demand and supply, cost and output. Profit to be derived as comm ission from various subsidiaries, such as SBI Life Insurance, SBI General Insura nce, SBI Card etc. are ascertained and as well as NPA management is also a conce rn of the financial manager. 4. Understanding Capital Markets Shares of a company are traded on stock exchange and there is a continuous sale and purchase of securities. Hence a clear understanding of capital market is an important function of a financial manager. When securities are traded on stock m arket there involves a huge amount of risk involved. Therefore a financial mange r understands and calculates the risk involved in this trading of shares and deb entures. It s on the discretion of a financial manager as to how distribute the prof its. Many investors do not like the firm to distribute the profits amongst share holders as dividend instead invest in the business itself to enhance growth. The practices of a financial manager directly impact the operation in capital marke t. Recently in SBI, New Pension Scheme is deployed where an amount of salary of an individual will be deducted monthly so as to be invested in market through we ll planned fund managers to give the maximum output for the said investment afte r retirement, all under the expert supervision of finance managers. Thus a financial manager plays a vital role in solving the financial problems of a bank. He is responsible for making the strategies and implementing them for l ong term goals. The role of the financial manager, particularly in business, is changing in response to technological advances that have significantly reduced t he amount of time it takes to produce financial reports. Financial managers now perform more data analysis and use it to offer senior managers ideas on how to m aximize profits. They often work on teams, acting as business advisors to top ma nagement. Financial managers need to keep abreast of the latest computer technol ogy in order to increase the efficiency of their firm's financial operations