State Bank of India
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| State Bank of India | |
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| Type | Public (BSE, NSE:SBI) & (LSE: SBID) |
| Founded | Calcutta, 1806 (as Bank of Calcutta) |
| Headquarters |  Corporate Centre,Madame Cama Road, Mumbai 400 021 India |
| Key people | Chairman Om Prakash Bhatt |
| Industry | Banking Insurance Capital Markets and allied industries |
| Products | Loans, Credit Cards, Savings, Investment vehicles, SBI Life (Insurance) etc. |
| Revenue |  USD 15.77 billion (2007) |
| Website | www.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. It is the largest bank in India and is ranked at 495 in Forbes Fortune 500 list. 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 rude attitude 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.
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[edit] History
- 1806: On June 2, the Bank of Calcutta was established.
- 1809: On January 2, the Bank of Calcutta changed its name to the Bank of Bengal.
- 1840: On April 15, the Bank of Bombay was established.
- 1843: On July 1, the Bank of Madras was established.
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]
[edit] 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.
- State Bank of Bikaner & Jaipur
- State Bank of Hyderabad
- State Bank of Indore
- State Bank of Mysore
- State Bank of Patiala
- State Bank of Saurashtra
- State Bank of Travancore
[edit] 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.
[edit] Foreign Branches
SBI has branches in these countries:
- Australia
- Bahrain
- Bangladesh
- Belgium
- Canada
- France
- Germany
- Hong Kong
- Israel
- Japan
- People's Republic of China
- Republic of Maldives
- Singapore
- South Africa
- Sri Lanka
- Sultanate of Oman
- The Bahamas
- United Arab Emirates
- U.K.
- U.S.A
[edit] Subsidiaries and Joint Ventures
In addition to the foreign branches above, SBI has these wholly owned subsidiaries and joint ventures:
- Nepal State Bank Limited is an Indo-Nepalese joint venture between State Bank of India, the Employees Provident Fund, and the Agricultural Development Bank of Nepal. It commenced operations on July 7, 1993, and now has 21 branches throughout Nepal.
- SBI Mauritius is an offshore bank, incorporated in 1990.
- Indian Ocean International Bank (Mauritius) has been operating in Mauritius since 1978. SBI acquired a majority stake in the bank in April 2005. The bank is is a commercial bank with 11 branches in major cities/towns in Mauritius, including Rodrigues.
- SBI Canada has been operating for more than a decade and has a number of branches in the Toronto and Vancouver areas.
- State Bank of India established SBI California in 1982. The bank has six branches within the state.
[edit] Growth
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.
[edit] 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
[edit] Group companies
- SBI Capital Markets Ltd
- SBI Mutual Fund (A Trust)
- SBI Factors and Commercial Services Ltd
- SBI DFHI Ltd
- SBI Cards and Payment Services Pvt Ltd
- SBI Life Insurance Co. Ltd - Bancassurance (Life Insurance)
- SBI Funds Management Pvt Ltd
- SBI Canada
[edit] 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
[edit] See also
[edit] References
- ^ a b "SBI joins Chinese bank to touch 10,000 branches", The Economic Times, 2008-03-09. Retrieved on 2008-04-23.
- ^ State Bank Of India :: India'S Largest Bank
- ^ FORTUNE Global 500 2006: State Bank of India
[edit] External links
- Main SBI Site
- Online SBI
- SBI Atm's,Branches,Loans and other Products
- Online SBI (Global)
- SBI Act 1955
- State Bank of India financial summary at Google Finance
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