State Bank of India

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State Bank of India
Company typePublic (BSE, NSE:SBI) & (LSE: SBID)
IndustryBanking
Insurance
Capital Markets and allied industries
FoundedCalcutta, 1806 (as Bank of Calcutta)
Headquarters Corporate Centre,
Madame Cama Road,
Mumbai 400 021 India
Key people
Chairman Om Prakash Bhatt
ProductsLoans, Credit Cards, Savings, Investment vehicles, SBI Life (Insurance) etc.
Revenue USD 13.775 billion (2005)
Websitewww.statebankofindia.com

State Bank of India (SBI) (LSE: SBID) is a Public Sector Banking Organisation (PSB), in which the Government of India is the biggest shareholder, and is the largest bank in India. Measured by the number of branch offices, SBI is the second largest bank in the world. SBI traces its ancestry back to the Bank of Calcutta, which was established in 1806; this makes SBI the oldest commercial bank in the Indian subcontinent. SBI provides various domestic, international and NRI products and services, through its vast network in India and overseas. With an asset base of $126 billion and its reach, it is a regional banking behemoth.

In recent years the bank has focused on four priorities, first, reducing its huge staff through the Golden handshake scheme known as the Voluntary Retirement Scheme, second, computerizing its operations, third, implementation of Business Process Re-Engineering(BPR), and fourth, trying to change the attitudes of its staff through a program aptly named 'Parivartan' or 'change'. On the whole, the Bank has been successful in the first three initiatives but has failed in Parivartan.

History

File:Bank of Bengal.jpg
Offices of the Bank of Bengal

These three banks — Bank of Bengal, Bank of Bombay, and Bank of Madras — were known as Presidency banks, were the result of royal charters, and were incorporated as joint stock companies.

  • 1861: The government passed the Paper Currency Act, limiting the right to issue paper currency to the three Presidency banks, .
  • 1921: On January 27, the government amalgamated the three Presidency banks to form the Imperial Bank of India. The Imperial Bank of India continued as a joint stock company. Until the establishment of a central bank in India, the Imperial Bank and its early predecessors served as India's central bank, at least with respect to the issuing of currency.
  • 1955: On 30 April, the Parliament of India enacted the State Bank of India Act authorizing the Reserve Bank of India (RBI), which is the central bank, to acquire a controlling interest in the Imperial Bank of India. The RBI then took a 60% ownership stake. On July 1, Imperial Bank of India became State Bank of India.
  • 1959: the Government of India passed the State Bank of India (Subsidiary Banks) Act, which enabled SBI to take over eight former State-associated banks as its subsidiaries.
  • 1980s When Bank of Cochin in Kerala faced a financial crisis, the government merged it with State Bank of India.
  • 2007: On June 29, the Government of India acquired the entire Reserve Bank of India (RBI) shareholding in State Bank of India (SBI), consisting of over 314 million equity shares, with a market value of over 355 billion rupees.
  • 2008: 9 March, 2008 State Bank of India on Sunday became the second bank in the world to have 10,000 branches when Union Finance Minister P Chidambaram inaugurated its latest branch at his native place Puduvayal.[1]

Associate banks

There are seven other associate banks that fall under SBI. They all use the "State Bank of" name followed by the regional headquarters' name. These were originally banks belonging to princely states before the government nationalized them in 1959. In tune with the first Five Year Plan, emphasizing the development of rural India, the government integrated these banks with the State Bank of India to expand its rural outreach. The State Bank group refers to the seven associates and the parent bank. All the banks use the same logo of a blue keyhole. Currently, the group is merging all the associate banks into SBI, which will create a "mega bank", and one hopes, streamline operations and unlock value.

Foreign Offices

State Bank of India is present in 32 countries, where it has 84 offices serving the international needs of the bank's foreign customers, and in some cases conducts retail operations. The focus of these offices is India-related business.

Foreign Branches

SBI has branches in these countries:

The Israeli branch

Subsidiaries and Joint Ventures

In addition to the foreign branches above, SBI has these wholly owned subsidiaries and joint ventures:

Growth

File:100 0209.jpg
Mumbai, India location.

State Bank of India has often acted as guarantor to the Indian Government, most notably during Chandra Shekhar's tenure as Prime Minister of India. With 10,000 branches[1] and a further 4000+ associate bank branches, the SBI has extensive coverage. Following its arch-rival ICICI Bank, State Bank of India has electronically networked most of its metropolitan, urban and semi-urban branches under its Core Banking System(CBS), with over 4500 branches being incorporated so far. The bank has the largest ATM network in the country having more than 5600 ATMs[2]. The State Bank of India has had steady growth over its history, though the Harshad Mehta scam in 1992 marred its image.

In recent years, the bank has sought to expand its overseas operations by buying foreign banks. It is the only Indian bank to feature in the top 100 world banks in the Fortune Global 500 rating and various other rankings. According to the Forbes 2000 listing it tops all Indian companies.

Fortune Global 500 Ranking - 2007

SBI debuted in the Fortune Global 500[3] at 498 in 2006. In 2007 it moved up to 495. As per fortune 500-2007 following are the data for SBI in $ million.

Revenues 15,119.4.

Profits 1,407.3.

Assets 187,547.1.

Stockholders' Equity 9,786.2

Group companies

IT Initiatives

According to PM Network (December 2006, Vol. 20, No. 12), State Bank of India launched a project in 2002 to network more than 14,000 domestic and 70 foreign offices and branches. The first and the second phases of the project have already been completed and the third phase is still in progress. As of December 2006, over 10,000 branches have been covered.

The new infrastructure serves as the bank's backbone, carrying all applications, such as the IP telephone network, ATM network, Internet banking and internal e-mail. The new infrastructure has enabled the bank to further grow its ATM network with plans to add another 3,000 by the end of 2007 raising the total number to 8,600. As of September 20, 2007 SBI has 7236 ATMs. sbi kanpur

See also

References

  1. ^ a b "SBI joins Chinese bank to touch 10,000 branches". The Economic Times. 2008-03-09. Retrieved 2008-04-23. {{cite news}}: Cite has empty unknown parameter: |coauthors= (help)
  2. ^ State Bank Of India :: India'S Largest Bank
  3. ^ FORTUNE Global 500 2006: State Bank of India

External links


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