The State Bank of India (SBI) and its five associate
banks are part of the 27 public sector banks. SBI’s origin can be traced back
to the early 1800s and hence it is considered as India’s oldest bank. After
several reorganisations and mergers, what was known as the Imperial Bank of
India in 1921 was named as the State Bank of India in 1955.
With a rich history, SBI today features
first in the list of top Indian banks. From domestic operations that reach most
of the country’s rural areas to a wide international presence, SBI has played a
critical role in setting benchmarks that have shaped India’s banking system.
The bank has a network of 16333 domestic branches (of
which 66% are located in rural and semi-urban areas) and 191 foreign offices
(including branches, subsidiaries/JVs, offices of subsidiaries/JVs
representative offices). It has presence in 36 countries including, Moscow,
Colombo, Dhaka, Frankfurt, Hong Kong, Tehran, Johannesburg, London, Los
Angeles, among others.
SBI’s total employee strength is 2,13,238 out of which
21% or 44790 are women employees.
Its total asset (including investments, advances) and
liability (including capital, reserves & surplus, borrowings) value stood
at Rs.2,048,080 crores for the fiscal year 2014-15. While net profits amounted
to Rs.13102 crores in 2014-15, it increased to 3349 crores in Q1 2015.
Apart from its associate banks, it has seven
non-banking subsidiaries, namely SBI Capital Markets Ltd, SBI General
Insurance, SBI Life Insurance Company Ltd, SBI DFHI, SBI Cards and Payment
Services Pvt. Ltd. SBI Factors and Commercial Services Ltd and SBI Funds and
Management Pvt Ltd. The present chairman and managing director of the bank is
Arundhati Bhattacharya.
SBI’s
Evolution
1. In
1806, Bank of Calcutta (later renamed Bank of Bengal) was established. This
bank merged with other Presidency banks, namely Bank of Madras and Bank of
Bombay, to form the Imperial Bank of India in 1921.
2. Imperial
Bank of India functioned as quasi-central bank till the Reserve Bank of India
was formed in 1935. Later, it also took up overseas operations and these roles
accorded it special benefits and responsibilities.
3. In
its three and half decades of existence, Imperial Bank witnessed impressive
growth and this enabled Imperial Bank to attain a prominent identity. To create
a state-sponsored and state-partnered bank, the State Bank of India Act was
passed in 1955.
4. SBI
was thus formed on July 1, 1955 inheriting Imperial Bank’s branches,
sub-offices and Local Head Offices that totalled to 480 offices. It started
operations with the aim of catering to the needs of a nascent economy.
5. It
was nationalised on June 2, 1956.
Mergers
and Acquisitions
Over the years SBI has acquired several local and
foreign banks.
*First was Bank of Bihar that was acquired in 1969 along with its 28 branches.
*In 1970, it absorbed National Bank of Lahore that had 24 branches.
*In 1975, Krishnaram Baldeo Bank that was established in Gwalior by Maharaja
Madhav Rao Scindia, was acquired by SBI.
*Latest in 1985, Bank of Cochin with all its 120 branches, was amalgamated with
SBI.
*In 2005, it acquired 51% stake in Mauritius-based Indian Ocean International
Bank (IOIB). In 2008, this was merged with SBI International (Mauritius).
* In 2006, SBI completed acquisition of Giro Commercial Bank of Kenya and PT
Bank Indo Monex of Indonesia.
* Later in 2010, it was reported that the bank was aiming to acquire banks in
Indonesia, Thailand and Philippines.
* In January this year, it was reported that SBI had finalised acquisition of a
bank in Africa.
*In June 2015, it was reported that the Finance Ministry is contemplating to
merge Bhartiya Mahila Bank (BMB) with SBI.
Some of SBI’s Non-banking Subsidiaries
1. SBI Capital Markets Ltd is an investment bank founded in 1986 offering services incorporating Project
Advisory and Loan Syndication, Structured Debt Placement, Capital Markets,
Mergers & Acquisitions, Private Equity and Stressed Assets Resolution.
SBICAP is the sole Indian member of M&A International. It is headquartered
in Mumbai and has five subsidiaries.
2. SBI Life Insurance is a joint venture firm between State Bank of India, and BNP Paribas Assurance.
SBI owns 74% of the total capital and BNP Paribas Cardif the remaining 26% of
the capital.
3. SBI Cards & Payments Services
Pvt. Ltd. (SBICPSL) is a payment solutions provider in India.
It is a joint venture between SBI and GE Capital (financial services unit of
General Electric). They are headquartered in Gurgaon
Awards
and Recognitions
*Brand of the Year 2015 by the World
Branding Forum was bagged by SBI.
*Technology Bank of the Year award by
IBA Banking technology Awards 2014-15
*Best Use of Data Award by IBA Banking technology Awards 2014-15
*Best of Digital and Channels
Technology by IBA Banking technology Awards 2014-15
*Best Bank- Public Sector by BFSI for
2014-15.
* Socially Responsible Bank – Magna
Awards 2015 by Business World Magazine
* Environmental Sustainability Award 2014 by BFSI Magazine
* Asia Sustainability Excellence Award 2014 by World CSR Congress
SBI
in the news
1. SBI
entered a tripartite MoU with online financial product aggregator –
bankbazaar.com and the bank’s subsidiary SBICAP Securities, to provide another
online platform to potential tech-savvy borrowers to apply for home loans.
2. To
tackle the problem of bad loans, SBI announced introduction of a system of
early warning signals to detect NPAs and take action. It is also implementing
measures like web-based tracking of assets and ‘regular calls’ to stressed
accounts in retail and real estate segments. While SBI’s gross non-performing
assets amounted to Rs.61605 crores in March 2014, as on March 2015, it reduced
to Rs.56725 crores.
3. SBI
launched Rewardz scheme to reward customers not only for timely repayment of
loans but also for opening an account or transferring funds through internet or
mobile banking.
4. The
bank has launched sbiINTOUCH Contactless Debit Card and SBI Signature
Contactless Credit Card for quick, safe and hassle-free payments at retail
outlets.
5. As
per the partnership with the e-commerce company, SBI will provide loans to
micro, small and medium enterprises (MSMEs) at easier interest rates and the
data regarding sellers will be provided by Snapdeal.
6. SBI is the sole Sponsoring Bank for direct benefit
transfer for LPG transactions, which are processed centrally Oil Marketing
Companies (OMCs). Over 8.98 crore transactions amounting Rs.5,393 crore
processed.
7. Under
the Pradhan Mantri Jan Dhan Yojana (PMJDY), around 1.9 million accounts were opened
in Chhattisgarh with SBI taking lead by sharing about 30 per cent of the new
accounts.
To get fresh updates about different exams on your Facebook & Twitter timelines, subscribe to our pages created specifically for them. We will post only exam specific links on these pages:
Bank PO:
FB: https://www.facebook.com/pagalguybankpo
Twitter: https://twitter.com/PaGaLGuYBankPO
SSC & Other Exams:
FB: https://www.facebook.com/pages/Pagalguy-SSC-CGL-Others/879667042056262
Twitter: https://twitter.com/pagalguyssc
UPSC:
Facebook: https://www.facebook.com/pages/Pagalguy-UPSC/951926044840262
Twitter: https://twitter.com/PaGaLGuYUPSC