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State bank of India (Hindi: ) (SBI) (BSE: 500112,

LSE: SBID) is the largest state-ownedbanking and financial servicescompany inIndia, by almost every parameter - revenues, profits, assets, market capitalization, etc.The bank traces its ancestry toBritish India, through the Imperial Bank of India, tothe founding in 1806 of the Bank of Calcutta, making it the oldest commercial bank inthe Indian Subcontinent. The Government of India nationalized the Imperial Bank ofIndia in 1955, with the Reserve Bank of India taking a 60% stake, and renamed it theState Bank of India. In 2008, the Government took over the stake held by the ReserveBank of India.

SBI provides a range of banking products through its vast network of branches inIndia and overseas, including products aimed atNRIs. The State Bank Group, withover 16,000 branches, has the largest banking branch network in India. With an asset

base of $352 billion and $285 billion in deposits, it is a regional banking behemoth. Ithas a market share among Indian commercial banks of about 20% in deposits andadvances, and SBI accounts for almost one-fifth of the nation's loans. [2]

SBI has tried to reduce over-staffing by computerizing operations and "goldenhandshake" schemes that led to a flight of its best and brightest managers. Thesemanagers took the retirement allowances and then went on to become seniormanagers in new private sector banks.

The State bank of India is the 10th most reputed company in the world according toForbes.[3]

State Bank of India is the largest of theBig Four Banksof India, along with ICICIBank,Punjab National Bankand Canara Bank its main competitors.[4]

Contents

[hide]

1 International presence 2 History 3 Associate banks 4 Group companies 5 Branches of SBI

6 Symbol and slogan 7 See also

http://en.wikipedia.org/wiki/Hindi_languagehttp://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://www.bseindia.com/stockreach/stockreach.htm?scripcd=500112http://en.wikipedia.org/wiki/London_Stock_Exchangehttp://www.londonstockexchange.com/exchange/prices-and-news/stocks/prices-search/stock-prices-search.html?nameCode=SBIDhttp://en.wikipedia.org/wiki/Government-owned_corporationhttp://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/wiki/Financial_servicehttp://en.wikipedia.org/wiki/Financial_servicehttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Market_capitalizationhttp://en.wikipedia.org/wiki/British_Rajhttp://en.wikipedia.org/wiki/British_Rajhttp://en.wikipedia.org/wiki/Imperial_Bank_of_Indiahttp://en.wikipedia.org/wiki/Bank_of_Calcuttahttp://en.wikipedia.org/wiki/Bank_of_Calcuttahttp://en.wikipedia.org/wiki/Indian_Subcontinenthttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Non-resident_Indianhttp://en.wikipedia.org/wiki/Non-resident_Indianhttp://en.wikipedia.org/wiki/State_Bank_of_India#cite_note-1%23cite_note-1http://en.wikipedia.org/wiki/Golden_handshakehttp://en.wikipedia.org/wiki/Golden_handshakehttp://en.wikipedia.org/wiki/Forbeshttp://en.wikipedia.org/wiki/State_Bank_of_India#cite_note-2%23cite_note-2http://en.wikipedia.org/wiki/Big_four_bankshttp://en.wikipedia.org/wiki/Big_four_bankshttp://en.wikipedia.org/wiki/ICICI_Bankhttp://en.wikipedia.org/wiki/ICICI_Bankhttp://en.wikipedia.org/wiki/Punjab_National_Bankhttp://en.wikipedia.org/wiki/Punjab_National_Bankhttp://en.wikipedia.org/wiki/Canara_Bankhttp://en.wikipedia.org/wiki/State_Bank_of_India#cite_note-3%23cite_note-3http://en.wikipedia.org/wiki/State_Bank_of_India#%23http://en.wikipedia.org/wiki/State_Bank_of_India#International_presence%23International_presencehttp://en.wikipedia.org/wiki/State_Bank_of_India#History%23Historyhttp://en.wikipedia.org/wiki/State_Bank_of_India#Associate_banks%23Associate_bankshttp://en.wikipedia.org/wiki/State_Bank_of_India#Group_companies%23Group_companieshttp://en.wikipedia.org/wiki/State_Bank_of_India#Branches_of_SBI%23Branches_of_SBIhttp://en.wikipedia.org/wiki/State_Bank_of_India#Symbol_and_slogan%23Symbol_and_sloganhttp://en.wikipedia.org/wiki/State_Bank_of_India#See_also%23See_alsohttp://en.wikipedia.org/wiki/Hindi_languagehttp://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://www.bseindia.com/stockreach/stockreach.htm?scripcd=500112http://en.wikipedia.org/wiki/London_Stock_Exchangehttp://www.londonstockexchange.com/exchange/prices-and-news/stocks/prices-search/stock-prices-search.html?nameCode=SBIDhttp://en.wikipedia.org/wiki/Government-owned_corporationhttp://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/wiki/Financial_servicehttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Market_capitalizationhttp://en.wikipedia.org/wiki/British_Rajhttp://en.wikipedia.org/wiki/Imperial_Bank_of_Indiahttp://en.wikipedia.org/wiki/Bank_of_Calcuttahttp://en.wikipedia.org/wiki/Indian_Subcontinenthttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Non-resident_Indianhttp://en.wikipedia.org/wiki/State_Bank_of_India#cite_note-1%23cite_note-1http://en.wikipedia.org/wiki/Golden_handshakehttp://en.wikipedia.org/wiki/Golden_handshakehttp://en.wikipedia.org/wiki/Forbeshttp://en.wikipedia.org/wiki/State_Bank_of_India#cite_note-2%23cite_note-2http://en.wikipedia.org/wiki/Big_four_bankshttp://en.wikipedia.org/wiki/ICICI_Bankhttp://en.wikipedia.org/wiki/ICICI_Bankhttp://en.wikipedia.org/wiki/Punjab_National_Bankhttp://en.wikipedia.org/wiki/Canara_Bankhttp://en.wikipedia.org/wiki/State_Bank_of_India#cite_note-3%23cite_note-3http://en.wikipedia.org/wiki/State_Bank_of_India#%23http://en.wikipedia.org/wiki/State_Bank_of_India#International_presence%23International_presencehttp://en.wikipedia.org/wiki/State_Bank_of_India#History%23Historyhttp://en.wikipedia.org/wiki/State_Bank_of_India#Associate_banks%23Associate_bankshttp://en.wikipedia.org/wiki/State_Bank_of_India#Group_companies%23Group_companieshttp://en.wikipedia.org/wiki/State_Bank_of_India#Branches_of_SBI%23Branches_of_SBIhttp://en.wikipedia.org/wiki/State_Bank_of_India#Symbol_and_slogan%23Symbol_and_sloganhttp://en.wikipedia.org/wiki/State_Bank_of_India#See_also%23See_also

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8 References

9 External links

[edit] International presence

State Bank of India (SBI), Mumbai Main Branch.

The bank has 131 overseas offices spread over 32 countries as on 31st Dec 2009. Ithas branches of the parent inColombo,Dhaka,Frankfurt, Hong Kong,Johannesburg,London and environs, Los Angeles,Male in the Maldives,Muscat,New York,Osaka,Sydney, andTokyo. It has offshore banking units in the Bahamas, Bahrain, andSingapore, and representative offices in Bhutan and Cape Town

SBI operates several foreign subsidiaries or affiliates. In 1990 it established anoffshore bank, State Bank of India (Mauritius).

In 1982, the bank established a subsidiary, State Bank of India (California), whichnow has eight branches - seven branches in the state of California and one inWashington DC that it opened on 23 November 2009. The seven branches inCalifornia are located in Los Angeles, Artesia, San Jose, Canoga Park, Fresno, SanDiego and Bakersfield.

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

The Canadian subsidiary, State Bank of India (Canada) too dates to 1982. It has sevenbranches, four in the greaterToronto area and three in British Columbia.

InNigeria SBI operates as INMB Bank. This bank began in 1981 as the Indo-Nigerian Merchant Bank and received permission in 2002 to commence retailbanking. It now has five branches in Nigeria.

http://en.wikipedia.org/wiki/State_Bank_of_India#References%23Referenceshttp://en.wikipedia.org/wiki/State_Bank_of_India#External_links%23External_linkshttp://en.wikipedia.org/w/index.php?title=State_Bank_of_India&action=edit&section=1http://en.wikipedia.org/wiki/Colombohttp://en.wikipedia.org/wiki/Colombohttp://en.wikipedia.org/wiki/Colombohttp://en.wikipedia.org/wiki/Dhakahttp://en.wikipedia.org/wiki/Frankfurthttp://en.wikipedia.org/wiki/Frankfurthttp://en.wikipedia.org/wiki/Hong_Konghttp://en.wikipedia.org/wiki/Hong_Konghttp://en.wikipedia.org/wiki/Johannesburghttp://en.wikipedia.org/wiki/Johannesburghttp://en.wikipedia.org/wiki/Londonhttp://en.wikipedia.org/wiki/Los_Angeleshttp://en.wikipedia.org/wiki/Los_Angeleshttp://en.wikipedia.org/wiki/Malehttp://en.wikipedia.org/wiki/Maldiveshttp://en.wikipedia.org/wiki/Muscat,_Omanhttp://en.wikipedia.org/wiki/Muscat,_Omanhttp://en.wikipedia.org/wiki/New_Yorkhttp://en.wikipedia.org/wiki/New_Yorkhttp://en.wikipedia.org/wiki/Osakahttp://en.wikipedia.org/wiki/Osakahttp://en.wikipedia.org/wiki/Sydneyhttp://en.wikipedia.org/wiki/Tokyohttp://en.wikipedia.org/wiki/Tokyohttp://en.wikipedia.org/wiki/Bahamashttp://en.wikipedia.org/wiki/Bahrainhttp://en.wikipedia.org/wiki/Singaporehttp://en.wikipedia.org/wiki/Bhutanhttp://en.wikipedia.org/wiki/Cape_Townhttp://en.wikipedia.org/wiki/Ramat_Ganhttp://en.wikipedia.org/wiki/Torontohttp://en.wikipedia.org/wiki/British_Columbiahttp://en.wikipedia.org/wiki/British_Columbiahttp://en.wikipedia.org/wiki/Nigeriahttp://en.wikipedia.org/wiki/File:State_Bank_of_India_in_Israel.JPGhttp://en.wikipedia.org/wiki/File:State_Bank_of_India_in_Israel.JPGhttp://en.wikipedia.org/wiki/File:SBImumbai.jpghttp://en.wikipedia.org/wiki/File:SBImumbai.jpghttp://en.wikipedia.org/wiki/State_Bank_of_India#References%23Referenceshttp://en.wikipedia.org/wiki/State_Bank_of_India#External_links%23External_linkshttp://en.wikipedia.org/w/index.php?title=State_Bank_of_India&action=edit&section=1http://en.wikipedia.org/wiki/Colombohttp://en.wikipedia.org/wiki/Dhakahttp://en.wikipedia.org/wiki/Frankfurthttp://en.wikipedia.org/wiki/Hong_Konghttp://en.wikipedia.org/wiki/Johannesburghttp://en.wikipedia.org/wiki/Londonhttp://en.wikipedia.org/wiki/Los_Angeleshttp://en.wikipedia.org/wiki/Malehttp://en.wikipedia.org/wiki/Maldiveshttp://en.wikipedia.org/wiki/Muscat,_Omanhttp://en.wikipedia.org/wiki/New_Yorkhttp://en.wikipedia.org/wiki/Osakahttp://en.wikipedia.org/wiki/Sydneyhttp://en.wikipedia.org/wiki/Tokyohttp://en.wikipedia.org/wiki/Bahamashttp://en.wikipedia.org/wiki/Bahrainhttp://en.wikipedia.org/wiki/Singaporehttp://en.wikipedia.org/wiki/Bhutanhttp://en.wikipedia.org/wiki/Cape_Townhttp://en.wikipedia.org/wiki/Ramat_Ganhttp://en.wikipedia.org/wiki/Torontohttp://en.wikipedia.org/wiki/British_Columbiahttp://en.wikipedia.org/wiki/Nigeria

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In Nepal, SBI owns 50% of Nepal SBI Bank, which has branches throughout thecountry. In Moscow SBI owns 60% ofCommercial Bank of India, with Canara Bankowning the rest. In Indonesia it owns 76% of PT Bank Indo Monex.

State Bank of India already has a branch inShanghaiand plans to open one up in

Tianjin.[5]

[edit] History

The roots of the State Bank of India rest in the first decade of 19th century, when theBank of Calcutta, later renamed theBank of Bengal, was established on 2 June 1806.The Bank of Bengal and two other Presidency banks, namely, theBank of Bombay(incorporated on 15 April 1840) and the Bank of Madras(incorporated on 1 July1843). All three Presidency banks were incorporated asjoint stock companies, andwere the result of the royal charters. These three banks received the exclusive right to

issue paper currency in 1861 with the Paper Currency Act, a right they retained untilthe formation of the Reserve Bank of India. The Presidency banks amalgamated on 27January 1921, and the reorganized banking entity took as its nameImperial Bank ofIndia. The Imperial Bank of India continued to remain a joint stock company.

Pursuant to the provisions of the State Bank of India Act (1955), theReserve Bank ofIndia, which is India's central bank, acquired a controlling interest in the ImperialBank of India. On 30 April 1955 the Imperial Bank of India became the State Bank ofIndia. The Govt. of India recently acquired the Reserve Bank of India's stake in SBIso as to remove any conflict of interest because the RBI is the country's bankingregulatory authority.

Offices of the Bank of Bengal

In 1959 the Government passed the State Bank of India (Subsidiary Banks) Act,enabling the State Bank of India to take over eight former State-associated banks asits subsidiaries. On 13 September 2008, State Bank of Saurashtra, one of its AssociateBanks, merged with State Bank of India.

SBI has acquired local banks in rescues. For instance, in 1985, it acquired Bank ofCochin in Kerala, which had 120 branches. SBI was the acquirer as its affiliate, StateBank of Travancore, already had an extensive network in Kerala.

[edit] Associate banks

SBI has five associate banks that with SBI constitute the State Bank Group. All usethe same logo of a blue keyhole and all the associates use the "State Bank of" name

http://en.wikipedia.org/w/index.php?title=Commercial_Bank_of_India&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Commercial_Bank_of_India&action=edit&redlink=1http://en.wikipedia.org/wiki/Canara_Bankhttp://en.wikipedia.org/wiki/Indonesiahttp://en.wikipedia.org/wiki/Shanghaihttp://en.wikipedia.org/wiki/Shanghaihttp://en.wikipedia.org/wiki/Shanghaihttp://en.wikipedia.org/wiki/Tianjinhttp://en.wikipedia.org/wiki/State_Bank_of_India#cite_note-4%23cite_note-4http://en.wikipedia.org/w/index.php?title=State_Bank_of_India&action=edit&section=2http://en.wikipedia.org/wiki/Bank_of_Calcuttahttp://en.wikipedia.org/wiki/Bank_of_Calcuttahttp://en.wikipedia.org/wiki/Bank_of_Bengalhttp://en.wikipedia.org/wiki/Bank_of_Bengalhttp://en.wikipedia.org/wiki/Bank_of_Bombayhttp://en.wikipedia.org/wiki/Bank_of_Bombayhttp://en.wikipedia.org/wiki/Bank_of_Madrashttp://en.wikipedia.org/wiki/Bank_of_Madrashttp://en.wikipedia.org/wiki/Joint_stock_companyhttp://en.wikipedia.org/wiki/Royal_charterhttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Imperial_Bank_of_Indiahttp://en.wikipedia.org/wiki/Imperial_Bank_of_Indiahttp://en.wikipedia.org/wiki/Imperial_Bank_of_Indiahttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Central_Bankhttp://en.wikipedia.org/wiki/Govt._of_Indiahttp://en.wikipedia.org/wiki/State_Bank_of_Saurashtrahttp://en.wikipedia.org/wiki/Keralahttp://en.wikipedia.org/wiki/State_Bank_of_Travancorehttp://en.wikipedia.org/wiki/State_Bank_of_Travancorehttp://en.wikipedia.org/w/index.php?title=State_Bank_of_India&action=edit&section=3http://en.wikipedia.org/wiki/File:Bank_of_Bengal.jpghttp://en.wikipedia.org/w/index.php?title=Commercial_Bank_of_India&action=edit&redlink=1http://en.wikipedia.org/wiki/Canara_Bankhttp://en.wikipedia.org/wiki/Indonesiahttp://en.wikipedia.org/wiki/Shanghaihttp://en.wikipedia.org/wiki/Tianjinhttp://en.wikipedia.org/wiki/State_Bank_of_India#cite_note-4%23cite_note-4http://en.wikipedia.org/w/index.php?title=State_Bank_of_India&action=edit&section=2http://en.wikipedia.org/wiki/Bank_of_Calcuttahttp://en.wikipedia.org/wiki/Bank_of_Bengalhttp://en.wikipedia.org/wiki/Bank_of_Bombayhttp://en.wikipedia.org/wiki/Bank_of_Madrashttp://en.wikipedia.org/wiki/Joint_stock_companyhttp://en.wikipedia.org/wiki/Royal_charterhttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Imperial_Bank_of_Indiahttp://en.wikipedia.org/wiki/Imperial_Bank_of_Indiahttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Central_Bankhttp://en.wikipedia.org/wiki/Govt._of_Indiahttp://en.wikipedia.org/wiki/State_Bank_of_Saurashtrahttp://en.wikipedia.org/wiki/Keralahttp://en.wikipedia.org/wiki/State_Bank_of_Travancorehttp://en.wikipedia.org/wiki/State_Bank_of_Travancorehttp://en.wikipedia.org/w/index.php?title=State_Bank_of_India&action=edit&section=3

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followed by the regional headquarters' name. Originally, the then seven banks thatbecame the associate banks belonged toprincely states until the governmentnationalised them between October, 1959 and May, 1960. In tune with the first FiveYear Plan, emphasizing the development of rural India, the government integratedthese banks into State Bank of India to expand its rural outreach. There has been a

proposal to merge all the associate banks into SBI to create a "mega bank" andstreamline operations.

The first step towards unification occurred on 13 August 2008 when State Bank ofSaurashtra merged with State Bank of India, reducing the number of state banks fromseven to six. Then on 19 June 2009 the SBI board approved the merger of itssubsidiary,State Bank of Indore, with itself. SBI holds 98.3% in the bank, and the

balance 1.77% is owned by individuals, who held the shares prior to its takeover bythe government.[6]

The acquisition of State Bank of Indore added 470 branches to SBI's existing network

of 12,448 and over 21,000 ATMs. Also, following the acquisition, SBI's total assetswill inch very close to the Rs 10-lakh crore mark. Total assets of SBI and the StateBank of Indore stood at Rs 998,119 crore as on March 2009. The process of mergingof State Bank of Indore was completed by April 2010.

The subsidiaries of SBI are:

SBI hikes lending, deposit

rates; loans to be dearerIra Duggal, August 16, 2010 (Mumbai)

After dithering for months, the countrys largest lender State Bank of India, on

Monday finally raised its benchmark lending rate by 50 basis points to 12.25 per cent,making home, vehicle and other corporate loans linked with the rate costlier to

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existing borrowers.

The rate hike would be effective from August 17,' SBI said in a statement to theBombay Stock Exchange.

In a separate statement, the SBI said it would also raise deposit rates between 25 to150 basis points across various maturities.

For the term deposits with maturity period between 90-180 days, will now earndepositors 4.75 per cent. While deposits between 180 days to 1 year will now earn 6

per cent, and rates for 1 to 2 year deposits are set at 6.75 per cent and 7.25 per cent.

Along with a hike in deposit rate, SBI has also launched floating rate deposit productswhere deposit rates are linked directly to their base rate.

The rate hikes comes after SBI along with other banks have seen a sharp drop in

deposit inflows due to the low rates being offered.

Along with an increase in its deposit rates, SBI has also hiked its benchmark primelending rate for existing customers who have not yet shifted to the base rate system.

SBI's prime lending rate has been hiked by 50 basis points to 12.25 per cent, while itsbase rate has been held steady at 7.5 per cent at least for now.

However SBI expects the base rate to be adjusted upwards as well at the end of thequarter.

With SBI finally hiking deposit rates most other banks are likely to follow suitreflecting that RBI's policy tightening to manage inflation is finally starting to takehold.

Read more at: http://profit.ndtv.com/news/show/sbi-hikes-lending-deposit-rates-loans-to-be-dearer-89641?cp

Branches of SBI SBI has 21000 ATMs. SBI has 26500 branches, inclusive of branches that belong to its Associate

banks. SBI alone has 18500 branches.

http://profit.ndtv.com/news/show/sbi-hikes-lending-deposit-rates-loans-to-be-dearer-89641?cphttp://profit.ndtv.com/news/show/sbi-hikes-lending-deposit-rates-loans-to-be-dearer-89641?cphttp://profit.ndtv.com/news/show/sbi-hikes-lending-deposit-rates-loans-to-be-dearer-89641?cphttp://profit.ndtv.com/news/show/sbi-hikes-lending-deposit-rates-loans-to-be-dearer-89641?cp

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SBI is the only bank consisting 26% participation inpublic sector banks and 39% participation incommercial banks in IndiaSBI Life has mostproductive agents

MUMBAI: SBI Life, a subsidiary of the countrys largest lender, State Bank of India, and the first lifecompany to swear by the bancassurance model, has emerged as the company with the largest numberof highly productive agents world-wide.

For the second year in a row, SBI Life has topped the league of companies whose agents are membersof the Million Dollar Round Table (MDRT) an international club of agents who have sold policies witha premium of over $1 million equivalent. This year SBI Life has said it has over 2,904 of its agents whohave qualified for the MDRT. As against this, New York Life a company which still sells largelythrough tied agents has only 1,995 agents on the MDRT.

SBI Life is the countrys largest new generation life insurer in new business and generates close to 45%of its business from individual agents. SBI Life agents productivity is remarkably high considering thatits agent base of 67,000 individuals is a fraction of what its rivals have. Company officials say that onereason for the higher productivity is SBIs brand name. The agents also have the advantage of leadsfrom SBI.

Interestingly, SBI Life has overtaken companies in countries where the average insurance purchase isten times bigger than in India. For instance, in the United States, premium per capita is $2,107,according to Swiss Res World Insurance Report.

As against this, amount spent by an individual on insurance every year is only $6.7. However, it must bementioned that markets in the West have evolved in terms of retirement savings as well as distribution.A large portion of policies are sold by independent financial advisers agents who are not affiliated toany particular company. In India, insurance laws require that agents be tied to a particular company.

Mr MN Rao, MD & CEO, SBI Life, said, The robust retail distribution structure in India, comprisingagents and bancassuance personnel, has played a significant role in reaching the life insurancesolutions to a large under penetrated population, in the recent years.

For the past four years, SBI has been consistently featuring among the top five insurers worldwide.

Globally, the company ranked 5th in 2007, 3rd in 2008, 1st in 2009 and in 2010 with 802, 1666, 2,677and 2,904 MDRT members, respectively.

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Home > Library > Business & Finance >Hoover's ProfilesContact Information

State Bank of IndiaCentral Office, 8th Fl., State Bank Bhavan, Madame Cama Rd.

Mumbai 400021, IndiaTel. +91-22-2274-1984Fax +91-22-2284-5257

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Type: PublicOn the web: http://www.statebankofindia.comEmployees: 205,896State Bank of India is the nation's largest and oldest bank. Tracing its roots back some200 years to the British East India Company (and initially established as the Bank of

Calcutta in 1806), the bank operates more than 15,000 branches within India, where italso owns majority stakes in six associate banks. State Bank of India (SBI) has morethan 80 offices in nearly 35 other countries, including multiple locations in the US,Canada, and Nigeria. The bank has other units devoted to capital markets, fundmanagement, factoring and commercial services, credit cards, and brokerage services.The Reserve Bank of India owns about 60% of State Bank of India.Key numbers for fiscal year ending March, 2009:Sales: $4,107.4MOne year growth: (12.5%)Net income: $2,141.9MIncome growth: (7.2%)

Officers:Chairman: Om Prakash BhattManaging Director and Group Executive (Corporate Banking): Tara Shankar (T.S.)BhattacharyaDeputy Managing Director, Information Technology: R.P. SinhaCompetitors:Bank of IndiaICICI BankUnion Bank of India

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Company History:

State Bank of IndiaTopHome > Library > Business & Finance >Company Histories

Incorporated: 1921 as the Imperial Bank of IndiaNAIC: 522110 Commercial Banking

Key Dates:

1806: The Bank of Calcutta is established as the first Western-type bank.

1809: The bank receives a charter from the imperial government and changes its

name to Bank of Bengal.

1840: A sister bank, Bank of Bombay, is formed.

1843: Another sister bank is formed: Bank of Madras, which, together with Bank

of Bengal and Bank of Bombay become known as the presidency banks, which had theright to issue currency in their regions.

1861: The Presidency Banks Act takes away currency issuing privileges but offers

incentives to begin rapid expansion, and the three banks open nearly 50 branches among

them by the mid-1870s.

1876: The creation of Central Treasuries ends the expansion phase of the

presidency banks.

1921: The presidency banks are merged to form a single entity, Imperial Bank ofIndia.

1955: The nationalization of Imperial Bank of India results in the formation of

the State Bank of India, which then becomes a primary factor behind the country'sindustrial, agricultural, and rural development.

1969: The Indian government establishes a monopoly over the banking sector.

1972: SBI begins offering merchant banking services.

1986: SBI Capital Markets is created.

1995: SBI Commercial and International Bank Ltd. are launched as part of SBI'sstepped-up international banking operations.

1998: SBI launches credit cards in partnership with GE Capital.

2002: SBI networks 3,000 branches in a massive technology implementation.

2004: A networking effort reaches 4,000 branches.

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State Bank of India (SBI) is that country's largest commercial bank. The government-controlled bank--the Indian government maintains a stake of nearly 60 percent in SBIthrough the central Reserve Bank of India--also operates the world's largest branchnetwork, with more than 13,500 branch offices throughout India, staffed by nearly220,000 employees. SBI is also present worldwide, with seven international

subsidiaries in the United States, Canada, Nepal, Bhutan, Nigeria, Mauritius, and theUnited Kingdom, and more than 50 branch offices in 30 countries. Long an arm of theIndian government's infrastructure, agricultural, and industrial development policies,SBI has been forced to revampits operations since competition was introduced intothe country's commercial banking system. As part of that effort, SBI has been rollingout its own network of automated tellermachines, as well as developing anytime-anywhere banking services through Internet and other technologies. SBI also hastaken advantage of the deregulationof the Indian banking sector to enter the

bancassurance, assets management, and securities brokering sectors. In addition, SBIhas been working on reigning in its branch network, reducing itspayroll, andstrengthening its loan portfolio. In 2003, SBI reported revenue of $10.36billionand

total assets of $104.81 billion.The establishment of the British colonial government in India brought with it calls forthe formation of a Western-style banking system, if only to serve the needs andinterests of the British imperial government and of the European trading houses doing

business there. The creation of a national banking system began at the beginning ofthe 19th century.The first component of what was later to become the State Bank of India was createdin 1806, in Calcutta. Called the Bank of Calcutta, it was also the country's first jointstock company. Originally established to serve the city's interests, the bank wasgranted a charter to serve all of Bengal in 1809, becoming the Bank of Bengal. Theintroduction of Western-style banking instituted deposit savings accounts and, insome cases, investment services. The Bank of Bengal also received the right to issueits own notes, which became legal currency within the Bengali region. This rightenabled the bank to establish a solid financial foundation, building an interest-freecapital base.The spread of colonial influence also extended the scope of government andcommercial financial influence. Toward the middle of the century, the imperialgovernment created two more regional banks. The Bank of Bombay was created in1840, and was soon joined by the Bank of Madras in 1843. Together with the Bank ofBengal, they became known as the "presidency" banks.All three banks were operated as joint stock companies, with the imperial government

holding a one-fifth share of each bank. The remaining shares were sold to privatesubscribers and, typically, were claimed by the Western European trading firms.These firms were represented on each bank's board of directors, which was presidedover by a nominee from the government. While the banks performed typical bankingfunctions, for both the Western firms and population and members of Indian society,their main role was to act as a leverfor raising loan capital, as well as help stabilizegovernment securities.The charters backing the establishment of the presidency banks granted them the rightto establish branch offices. Into the second half of the century, however, the banksremained single-office concerns. It was only after the passage of the Paper CurrencyAct in 1861 that the banks began their first expansion effort. That legislation had

taken away the presidency banks' authority to issue currency, instead placing the

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issuing of paper currency under direct control of the British government in India,starting in 1862.Yet that same legislation included two key features thatstimulated the growth of anational banking network. On the one hand, the presidency banks were given theresponsibility for the new currency's management and circulation. On the other, the

government agreed to transfer treasury capital backing the currency to the banks--andespecially to their branch offices. This latter feature encouraged the three banks to

begin building the country's first banking network. The three banks then launched anexpansion effort, establishing a system of branch offices, agencies, and sub-agenciesthroughout the most populated regions of the Indian coast, and into the inland areas aswell. By the end of the 1870s, the three presidency banks operated nearly 50 branchesamong them.The rapid growth of the presidency banks came to an abrupt halt in 1876, when a new

piece of legislation, the Presidency Banks Act, placed all three banks under a commoncharter--and a common set of restrictions. As part of the legislation, the Britishimperial government gave up its ownership stakes in the banks, although they

continued to provide a number of services to the government, and retained some ofthe government's treasury capital. The majority of that, however, was transferred tothe three newly created Reserve Treasuries, located in Calcutta, Bombay, and Madras.The Reserve Treasuries continued to lend capital to the presidency banks, but on amore restrictive basis. The minimum balance now guaranteed under the PresidencyBanks Act was applicable only to the banks' central offices. With branch offices nolonger guaranteed a minimum balance backed by government funds, the banks endeddevelopment of their networks. Only the Bank of Madras continued to grow for sometime, supplied as it was by the influx of capital from development of trade among theregion's port cities.The loss of the government-backed balances was soon compensated by India's rapideconomic development at the end of the 19th century. The building of a nationalrailroad network launched the country into a new era, seeing the rise of cash-cropfarming, a mining industry, and widespread industrial development. The three

presidency banks took active roles in financing this development. The banks alsoextended their range of services and operations, although for the time being wereexcluded from the foreign exchange market.By the beginning of the 20th century, India's banking industry boasted a host of newarrivals, and particularly foreign banks authorized to exchange currency. The growthof the banking sector, and the development of indigenous banks, in turn created aneed for a larger "bankers' bank." At the same time, the Indian government had

outgrown its colonial background and now required a more centralized bankinginstitution. These factors led to the decision to merge the three presidency banks intoa new, single and centralized banking institution, the Imperial Bank of India.Created in 1921, the Imperial Bank of India appeared to inaugurate a new era inIndia's history--culminating in its declaration of independence from the BritishEmpire. The Imperial Bank took on the role of central bank for the Indiangovernment, while acting as a bankers' bank for the growing Indian banking sector. Atthe same time, the Imperial Bank, which, despite its role in the government financialstructure remained independent of the government, carried on its own commercial

banking operations.In 1926, a government commission recommended the creation of a true central bank.

While some proposed converting the Imperial Bank into a central bankingorganization for the country, the commission rejected this idea and instead

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recommended that the Imperial Bank be transformed into a purely commercialbanking institution. The government took up the commission's recommendations,drafting a new bill in 1927. Passage of the new legislation did not occur until 1935,however, with the creation of the Reserve Bank of India. That bank took over allcentral banking functions.

The Imperial Bank then converted to full commercial status, which accordinglyallowed it to enter a number of banking areas, such as currency exchange and trusteeand estate management, from which it had previously been restricted. Despite the lossof its role as a government banking office, the Imperial Bank continued to provide

banking services to the Reserve Bank, particularly in areas where the Reserve Bankhad not yet established offices. At the same time, the Imperial Bank retained its

position as a bankers' bank.Into the early 1950s, the Imperial Bank grew steadily, dominating the Indiancommercial banking industry. The bank continued to build up its assets and capital

base, and also entered a new phase of national expansion. By the middle of the 1950s,the Imperial Bank operated more than 170 branch offices, as well as 200 sub-offices.

Yet the bank, like most of the colonial government, focused primarily on the country'surban regions.By then, India had achieved its independence from Britain. In 1951, the newgovernment launched its first Five Year Plan, targeting in particular the developmentof the country's rural areas. The lack of a banking infrastructure in these regions ledthe government to develop a state-owned banking entity to fill the gap. As part of that

process, the Imperial Bank was nationalized and then integrated with other existinggovernment-owned banking components. The result was the creation of the StateBank of India, or SBI, in 1955.The new state-owned bank now controlled more than one-fourth of India's total

banking industry. That position was expanded at the end of the decade, when newlegislation was passed providing for the takeover by the State Bank of eight regionally

based, government-controlled banks. As such the Banks ofBikaner, Jaipur, Idnore,Mysore, Patiala, Hyderabad, Saurashtra, and Travancore became subsidiaries of theState Bank. Following the 1963 merger of the Bikaner and Jaipur banks, their sevenremaining subsidiaries were converted into associate banks.In the early 1960s, the State Bank's network already contained nearly 500 branchesand sub-offices, as well as the three original head offices inherited from the

presidency bank era. Yet the State Bank now began an era of expansion, acting as amotor for India's industrial and agricultural development, that was to transform it intoone of the world's largest financial networks. Indeed, by the early 1990s, the State

Bank counted nearly 15,000 branches and offices throughout India, giving it theworld's single largest branch network.SBI played an extremely important role in developing India's rural regions, providingthe financing needed to modernize the country's agricultural industry and develop newirrigation methods and cattle breeding techniques, and backing the creation of dairyfarming, as well as pork andpoultry industries. The bank also provided backing forthe development of the country's infrastructure, particularly on a local level, where it

provided credit coverage and development assistance to villages. The nationalizationof the banking sector itself, an event that occurred in 1969 under the government led

by Indira Gandhi, gave SBI new prominence as the country's leading bank.Even as it played a primary role in the Indian government's industrial and agricultural

development policies, SBI continued to develop its commercial banking operations. In1972, for example, the bank began offering merchant banking services. By the mid-

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1980s, the bank's merchant banking operations had grown sufficiently to support thecreation of a dedicated subsidiary, SBI Capital Markets, in 1986. The following year,the company launched another subsidiary, SBI Home Finance, in a collaboration withthe Housing Development Finance Corporation. Then in the early 1990s, SBI addedsubsidiaries SBI Factors and Commercial Services, and then launched institutional

investor services.SBI was allowed to dominate the Indian banking sector for more than two decades. Inthe early 1990s, the Indian government kicked off a series of reforms aimed atderegulating the banking and financial industries. SBI was now forced tobraceitselffor the arrival of a new wave of competitors eager to enter the fast-growing Indianeconomy's commercial banking sector. Yet years as a government-run institution hadleft SBI bloated--the civil-servant status of its employees had encouraged its payrollto swell to more than 230,000. The bureaucratic nature of the bank's management leftlittle room for personal initiative, norincentive for controlling costs.The bank also had been encouraged to increase its branch network, with little concernfor profitability. As former Chairman Dipankar Baku told the Bankerin the early

1990s: "In the aftermath of bank nationalisation everyone lost sight of the fact thatbanks had to be profitable. Banking was more to do with social policy and perhapsthat was relevant at the time. For the last two decades the emphasis was on physicalexpansion."Under Baku, SBI began retooling for the new competitive environment. In 1994, the

bank hired consulting group McKinsey & Co. to help it restructureits operations.McKinsey then led SBI through a massive restructuring effort that lasted throughmuch of the decade and into the beginning of the next, an effort that helped SBIdevelop a new corporate culture focused more on profitability than on social and

political policy. SBI also stepped up its international trade operations, such as foreignexchange trading, as well as corporate finance, export credit, and international

banking.SBI had long been present overseas, operating some 50 offices in 34 countries,including full-fledged subsidiaries in the United Kingdom, the United States, andelsewhere. In 1995 the bank set up a new subsidiary, SBI Commercial andInternational Bank Ltd., to back its corporate and international banking services. The

bank also extended its international network into new markets such as Russia, China,and South Africa.Back home, in the meantime, SBI began addressing the technology gap that existed

between it and its foreign-backed competitors. Into the 1990s, SBI had yet to establishan automated teller network; indeed, it had not even automated its information

systems. SBI responded by launching an ambitious technology drive, rolling out itsown ATM network, then teaming up with GE Capital to issue its own credit card. Inthe early 2000s, the bank began cross-linking its banking network with its ATMnetwork and Internet and telephone access, rolling out "anytime, anywhere" bankingaccess. By 2002, the bank had succeeded in networking its 3,000 most profitable

branches.The implementation of new technology helped the bank achieve strong profit gainsinto the early years of the new century. SBI also adopted new human resources andretirement policies, helping trim its payroll by some 20,000, almost entirely throughvoluntary retirement in a country where joblessness remained a decided problem.By the beginning of 2004, SBI appeared to be well on its way to meeting the

challenges offered by the deregulated Indian banking sector. In a twist, the bank hadbecome an aggressorinto new territories, launching its own line of bancassurance

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products, and also initiating securities brokering services. In the meantime, SBIcontinued its technology rollout, boosting the number of networked branches to morethan 4,000 at the end of 2003. SBI promised to remain a central figure in the Indian

banking sector as it entered its third century.Principal Subsidiaries

Bank of Bhutan (Bhutan); Indo Nigeria Merchant Bank Ltd. (Nigeria); Nepal SBIBank Ltd. (Nepal); SBI (U.S.A.); SBI (Canada); SBI Capital Market Ltd.; SBI Cards& Payments Services Ltd.; SBI Commercial and International Bank Ltd.; SBIEuropean Bank plc (U.K.); SBI Factors & Commercial Services Ltd.; SBI FundsManagement Ltd.; SBI Gilts Ltd.; SBI Home Finance Ltd.; SBI Securities Ltd.; StateBank International Ltd. (Mauritius); State Bank of Bikaner & Jaipur; State Bank ofHyderabad; State Bank ofIndore; State Bank ofMysore; State Bank ofPatiala; StateBank of Saurastra; State Bank of Travancore.Principal CompetitorsICICI Bank; Bank ofBaroda; Canara Bank; Punjab National Bank; Bank of India;Union Bank of India; Central Bank of India; HDFC Bank; Oriental Bank of

Commerce.Further ReadingChatterjee, Debojyoti, "The Great SBI Makeover," Business Today, August 4, 2002.Chowdhury, Neel, "Privatizing in India: Bank's Thorny Path," International HeraldTribune, August 16, 1996, p. 17.Guha, Krishna, "State Bank of India Faces a Bumpy Ride," Financial Times, January14, 1998, p. 38.Merchant, Khozem, "SBI Close to Finding Partner," Financial Times, February 2,2004, p. 24."SBI's Technology Blueprint," India Business Insight, November 30, 2003."SBI to Launch 100th ATM in Kerala Today," Asia Africa Intelligence Wire, March26, 2004.Thaur, B.S., The Evolution of the State Bank of India, London: Sage Publications,2003.Verma, Virenda, "SBI Stays a Star Performer," Business Line,

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