State Bank of India


State Bank of India SBI is an Indian multinational, public sector banking and financial services company It is a government-owned corporation with its headquarters in Mumbai, Maharashtra As of 2014-15, it had assets of ₹20480 trillion US$300 billion and more than 14,000 branches, including 191 foreign offices spread across 36 countries, making it the largest banking and financial services company in India by assets[4][5][6] The company is ranked 232nd on the Fortune Global 500 list of the world's biggest corporations as of 2016[7]

The bank traces its ancestry to British India, through the Imperial Bank of India, to the founding, in 1806, of the Bank of Calcutta, making it the oldest commercial bank in the Indian Subcontinent Bank of Madras merged into the other two "presidency banks" in British India, Bank of Calcutta and Bank of Bombay, to form the Imperial Bank of India, which in turn became the State Bank of India in 1955[8] Government of India owned the Imperial Bank of India in 1955, with Reserve Bank of India India's Central Bank taking a 60% state, and renamed it the State Bank of India In 2008, the government took over the stake held by the Reserve Bank of India

State Bank of India is a banking behemoth and has 20% market share in deposits and loans among Indian commercial banks[9]

Contents

  • 1 History
  • 2 Operations
    • 21 Domestic presence
    • 22 International presence
    • 23 Associate banks
    • 24 Non-banking subsidiaries
    • 25 Other SBI service points
  • 3 Listings and shareholding
  • 4 Employees
  • 5 Recent awards and recognitions
  • 6 Major competitors
  • 7 See also
  • 8 References
  • 9 External links

History

Seal of Imperial Bank of India

The roots of the State Bank of India lie in the first decade of the 19th century, when the Bank of Calcutta, later renamed the Bank of Bengal, was established on 2 June 1806 The Bank of Bengal was one of three Presidency banks, the other two being the Bank of Bombay incorporated on 15 April 1840 and the Bank of Madras incorporated on 1 July 1843 All three Presidency banks were incorporated as joint stock companies and were the result of royal charters These three banks received the exclusive right to issue paper currency till 1861 when, with the Paper Currency Act, the right was taken over by the Government of India The Presidency banks amalgamated on 27 January 1921, and the re-organised banking entity took as its name Imperial Bank of India The Imperial Bank of India remained a joint stock company but without Government participation

Pursuant to the provisions of the State Bank of India Act of 1955, the Reserve Bank of India, which is India's central bank, acquired a controlling interest in the Imperial Bank of India On 1 July 1955, the imperial Bank of India became the State Bank of India In 2008, the Government of India acquired the Reserve Bank of India's stake in SBI so as to remove any conflict of interest because the RBI is the country's banking regulatory authority

In 1959, the government passed the State Bank of India Subsidiary Banks Act This made SBI subsidiaries of eight that had belonged to princely states prior to their nationalization and operatonal take-over between September 1959 and October 1960, which made eight state banks associates of SBI This acquisition was in tune with the first Five Year Plan, which prioritised the development of rural India The government integrated these banks into the State Bank of India system to expand its rural outreach In 1963 SBI merged State Bank of Jaipur est 1943 and State Bank of Bikaner est1944

SBI has acquired local banks in rescues The first was the Bank of Bihar est 1911, which SBI acquired in 1969, together with its 28 branches The next year SBI acquired National Bank of Lahore est 1942, which had 24 branches Five years later, in 1975, SBI acquired Krishnaram Baldeo Bank, which had been established in 1916 in Gwalior State, under the patronage of Maharaja Madho Rao Scindia The bank had been the Dukan Pichadi, a small moneylender, owned by the Maharaja The new bank's first manager was Jall N Broacha, a Parsi In 1985, SBI acquired the Bank of Cochin in Kerala, which had 120 branches SBI was the acquirer as its affiliate, the State Bank of Travancore, already had an extensive network in Kerala

The new logo of the SBI was the aerial view of the Kankaria Lake in Ahmedabad, Gujrat on 1 October 1971 and was designed by Shekhar Kammat

There has been a proposal to merge all the associate banks into SBI to create a "mega bank" and streamline the group's operations[10]

The first step towards unification occurred on 13 August 2008 when State Bank of Saurashtra merged with SBI, reducing the number of associate state banks from seven to six On 19 June 2009 the SBI board approved the absorption of State Bank of Indore SBI holds 983% in State Bank of Indore Individuals who held the shares prior to its takeover by the government hold the balance of 17%[11]

The acquisition of State Bank of Indore added 470 branches to SBI's existing network of branches Also, following the acquisition, SBI's total assets will approach ₹10 trillion The total assets of SBI and the State Bank of Indore were₹9,981,190 million as of March 2009 The process of merging of State Bank of Indore was completed by April 2010, and the SBI Indore branches started functioning as SBI branches on 26 August 2010[12]

On 7 October 2013, Arundhati Bhattacharya became the first woman to be appointed Chairperson of the bank[13]

Operations

SBI provides a range of banking products through its network of branches in India and overseas, including products aimed at non-resident Indians NRIs SBI has 14 regional hubs and 57 Zonal Offices that are located at important cities throughout India

Domestic presence

SBI has 18,354 branches in India[2] In the financial year 2012–13, its revenue was ₹2005 trillion US$30 billion, out of which domestic operations contributed to 9535% of revenue Similarly, domestic operations contributed to 8837% of total profits for the same financial year[2]

Under the Pradhan Mantri Jan Dhan Yojana of financial inclusion launched by Government in August 2014, SBI held 11,300 camps and opened over 3 million accounts by September, which included 21 million accounts in rural areas and 088 million accounts in urban areas[14]

International presence

The Israeli branch of the State Bank of India located in Ramat Gan

As of 2014–15, the bank had 191 overseas offices spread over 36 countries having the largest presence in foreign markets among Indian banks[6] It has branches in Singapore, Moscow, Colombo, Dhaka, Frankfurt, Hong Kong, Tehran, Johannesburg, London, Los Angeles, Male in the Maldives, Muscat, Dubai, New York, Osaka, Sydney, and Tokyo It has offshore banking units in the Bahamas and Bahrain, and representative offices in Myanmar, Bhutan and Cape Town

SBI has 7 retail banking branches in Singapore

The Canadian subsidiary SBI Canada Bank previously State Bank of India Canada also dates to 1982 It has six branches, four in the Toronto area and two in the Vancouver area

SBI operates several foreign subsidiaries or affiliates

In 1990, it established an offshore bank: State Bank of India Mauritius SBI Mauritius has 15 branches in major cities/towns of the country including Rodrigues

State Bank of India Branch at Jaffna, Sri Lanka

SBI Sri Lanka now has three branches located in Colombo, Kandy and Jaffna The Jaffna branch was opened on 9 September 2013 SBI Sri Lanka, the oldest bank in Sri Lanka, celebrated its 150th year in Sri Lanka on 1 July 2014

State Bank of India SBI Branch at Tsim Sha Tsui, Hong Kong

In 1982, the bank established a subsidiary, State Bank of India, which now has ten branches—nine branches in the state of California and one in Washington, DC The 10th branch was opened in Fremont, California on 28 March 2011 The other eight branches in California are located in Los Angeles, Artesia, San Jose, Canoga Park, Fresno, San Diego, Tustin and Bakersfield

In Nigeria, SBI operates as INMB Bank This bank began in 1981 as the Indo–Nigerian Merchant Bank and received permission in 2002 to commence retail banking It now has five branches in Nigeria

In Nepal, SBI owns 49% of SBI Nepal State Bank in Nepal share with Nepal Government owing the rest and SBI NEPAL has branches throughout the country in each and every city as banking has become the major part of daily life for Nepalese people

In Moscow, SBI owns 60% of Commercial Bank of India, with Canara Bank owning the rest

In Indonesia, it owns 76% of PT Bank Indo Monex

The State Bank of India already has a branch in Shanghai and plans to open one in Tianjin[15]

In Kenya, State Bank of India owns 76% of Giro Commercial Bank, which it acquired for US$8 million in October 2005[16]

In January 2016, SBI opened its first branch in Seoul, South Korea following the continuous and significant increase in trade due to the Comprehensive Economic Partnership Agreement signed between New Delhi and Seoul in 2009

Associate banks

Main Branch of SBI in Mumbai

SBI now has one associate bank, down from the eight that it originally acquired in 1959 All use the State Bank of India logo, which is a blue circle, and all use the "State Bank of" name, followed by the regional headquarters' name:

  • State Bank of Patiala founded 1917
  • State Bank of Mysore founded 1913
  • State Bank of Bikaner & Jaipur founded 1963
  • State Bank of Hyderabad founded 1941
  • State Bank of Travancore founded 1945
  • Bharatiya Mahila Bankfounded 2013


The banks which are merged are:

  • State Bank of Saurashtra merged 2008
  • State Bank of Indore merged 2010

The negotiations for merging of 5 associate banks State Bank of Bikaner and Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala and State Bank of Travancore and Bharatiya Mahila Bank by acquire their businesses including assets and liabilities with "SBI Online"  started in 2016[17][18] The merger of these six subsidiaries was approved by Union Cabinet on 15 June 2016[19] The State Bank of India and all its associate banks are identified by the same blue keyhole logo The State Bank of India wordmark usually has one standard typeface, but also utilises other typefaces

State Bank of India Mumbai LHO

Non-banking subsidiaries

Apart from its five associate banks, SBI also has the following non-banking subsidiaries:

  • SBI Capital Markets Ltd
  • SBI Funds Management Pvt Ltd
  • SBI Factors & Commercial Services Pvt Ltd
  • SBI Cards & Payments Services Pvt Ltd SBICPSL
  • SBI DFHI Ltd
  • SBI Life Insurance Company Limited
  • SBI General Insurance

In March 2001, SBI with 74% of the total capital, joined with BNP Paribas with 26% of the remaining capital, to form a joint venture life insurance company named SBI Life Insurance company Ltd In 2004, SBI DFHI Discount and Finance House of India was founded with its headquarters in Mumbai

Other SBI service points

As of 31 March 2016,SBI has 49,577 ATMs & SBI group including associate banks has 58,541 ATMs

IFSC Codes of all SBI State Bank of India Branches

Listings and shareholding

As on 31 March 2014, Government of India held around 5859% equity shares in SBI Life Insurance Corporation of India is the largest non-promoter shareholder in the company with 1499% shareholding

Shareholders Shareholding[20]
Promoters: Government of India 5860%
Banks & Insurance Companies 1679%
FIIs/GDRs/OCBs/NRIs 1204%
Mutual Funds & UTI 0378%
Private Corporate Bodies 0287%
Others 592%
Total 1000%

The equity shares of SBI are listed on the Bombay Stock Exchange,[21] where it is a constituent of the BSE SENSEX index,[22] and the National Stock Exchange of India,[23] where it is a constituent of the CNX Nifty[24]
Its Global Depository Receipts GDRs are listed on the London Stock Exchange[25]

Employees

State Bank Learning Centre in Masulipatnam

SBI is one of the largest employers in the country having 222,033 employees as on 31 March 2014, out of which there were 45,132 female employees 20% and 2,610 1% employees with disabilities On the same date, SBI had 42,744 Schedule Caste 19% and 17,243 Schedule Tribe 8% employees The percentage of Officers, Assistants and Sub-staff was 36%, 46% and 18% respectively on the same date Hiring drive: 1,776 Assistants and 1,394 Officers joined the Bank in FY 2013-14, for expansion of the branch network and to mitigate staff shortage, particularly at rural and semi-urban branches Staff productivity: As per its Annual Report for FY 2013-14, each employee contributed net profit of INR 485,000

Recent awards and recognitions

  • SBI was ranked as the top bank in India based on tier 1 capital by The Banker magazine in a 2014 ranking[26]
  • SBI was ranked 298th in the Fortune Global 500 rankings of the world's biggest corporations for the year 2012[3]
  • SBI was named the 29th most reputed company in the world according to Forbes 2009 rankings[27]
  • SBI was 50th Most Trusted brand in India as per the Brand Trust Report 2013,[28] an annual study conducted by Trust Research Advisory, a brand analytics company and subsequently, in the Brand Trust Report 2014, SBI finished as India's 19th Most Trusted Brand in India[29][30]

Major competitors

Some of the major competitors for SBI in the banking sector are large private sector banks ICICI Bank, HDFC Bank, Axis Bank, IndusInd Bank, small regional banks and other public sector banks Canara Bank, Bank of India and Union Bank of India However, in terms of average market share, SBI is by far the largest player in the market[31]

See also

  • List of largest banks
  • John Mathai

References

  1. ^ http://rbidocsrbiorgin/rdocs/content/PDFs/90028pdf
  2. ^ a b c "SBI Quarterly Results" EarningsIndia Retrieved 21 July 2016 
  3. ^ a b "Fortune 'Global 500' 2013:State Bank of India" CNN Retrieved 10 October 2013 
  4. ^ As India's Banks Wait In Fear Of The Rupee Hitting 70 To The Dollar, Here's A List Of The Best 10 Indian Banks By Revenue Ibtimescom 4 September 2013 Retrieved on 2013-12-06
  5. ^ History of the Evolution of SBI volumes 1, 2 and 3 and Banking Beyond Boundaries Penguin, 2011
  6. ^ a b "SBI Annual Report 2014-15" PDF State Bank of India Retrieved 14 January 2016 
  7. ^ "Fortune Global 500 list" CNN Money Retrieved 22 July 2016 
  8. ^ Banking Theory Law N Practice Tata McGraw-Hill Education p 8 Retrieved 4 November 2014  |first1= missing |last1= in Authors list help
  9. ^ "SBI accounts for one-fifth of country's loans" Livemintcom 25 January 2009 Retrieved 20 August 2010 
  10. ^ "Indian Banks' Association" Ibaorgin 23 April 2005 Retrieved 21 December 2010 
  11. ^ Business Standard 21 June 2010 "Approvals for State Bank of Indore merger by July: SBI" 
  12. ^ Economic Times 26 August 2010 "State Bank of Indore branches to become SBI units from Aug 26 : SBI" The Times of India 
  13. ^ "Arundhati Bhattacharya, first woman to head SBI" 
  14. ^ "SBI takes lead in opening bank accounts under Jan Dhan Yojana" The Economic Times 11 September 2014 Retrieved 30 September 2014 
  15. ^ "State Bank of India to set up branch in China's Tianjin" Forbes 21 November 2007 Retrieved 16 July 2010 [dead link]
  16. ^ "State Bank of India Acquired 76% Shareholding in Giro Commercial Bank in 2005" Accessmylibrarycom 8 October 2005 Retrieved 21 December 2010 
  17. ^ "Five associate banks to merge with SBI" 18 May 2016 Retrieved 1 July 2016 – via The Hindu 
  18. ^ Iyer, Aparna 17 May 2016 "SBI merger: India may soon have a global Top 50 bank" Retrieved 1 July 2016 
  19. ^ "SBI merges with 5 associates: New entity set to enter world's top 50 banks list" Mumbai: Financial Express 16 June 2016 Retrieved 16 June 2016 
  20. ^ "Shareholding Pattern as on 30 June 2013" MoneyControlcom Retrieved 10 October 2013 
  21. ^ "State Bank of India" BSEindiacom Retrieved 11 October 2013 
  22. ^ "Scripwise Weightages in S&P BSE SENSEX" BSE India Retrieved 11 October 2013 
  23. ^ "State Bank of India" NSE India Retrieved 11 October 2013 
  24. ^ "Download List of CNX Nifty stocks csv" NSE India Retrieved 11 October 2013 
  25. ^ "SBID State Bank of India GDR Each Rep 2 SHS INR10" London Stock Exchange 11 October 1996 Retrieved 11 October 2013 
  26. ^ "The top five banks in India" thebankercom 10 April 2014 Retrieved 11 April 2014 
  27. ^ Kneale, Klaus 6 May 2009 "World's Most Reputable Companies: The Rankings" Forbes Retrieved 20 August 2010 
  28. ^ "Brand Mahatma lags behind Sachin, Aamir: Study" India Today 28 January 2011 Retrieved 10 October 2013 
  29. ^ "The Economic Times" 
  30. ^ "Brand Trust Report 2014" Archived from the original on 24 October 2014 
  31. ^ "Competitors of SBI in India - Equitymaster" 

External links

  • Official website


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