STATE BANK OF INDIA

State Bank of India 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 December 2013, it had assets of US$388 billion and 17,000 branches, including 190 foreign offices, making it the largest banking and financial services company in India by assets.

State Bank of India is one of the Big Four banks of India, along with Bank of Baroda, Punjab National Bank and Bank of India.

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. Government of India owned the Imperial Bank of India in 1955, with Reserve Bank of India (India's Central Bank) taking a 60% stake, 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 regional banking behemoth and has 20% market share in deposits and loans among Indian commercial banks.

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 14,816 branches in India, as on 31 March 2013, of which 9,851 (66%) were in Rural and Semi-urban areas.In the financial year 2012-13, its revenue was INR 200,560 Crores (US$36.9 billion), out of which domestic operations contributed to 95.35% of revenue. Similarly, domestic operations contributed to 88.37% of total profits for the same financial year.

Under the Pradhan Mantri Jan Dhan Yojana of financial inclusion launched by Government in August 2014, SBI held 11,300 camps and opened over 30 lakhs accounts by September, which included 21.16 lakh accounts in rural areas and 8.8 lakh accounts in urban areas

International presence

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

As of 28 June 2013, the bank had 180 overseas offices spread over 34 countries. It has branches of the parent in 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, Bahrain, and Singapore, and representative offices in Bhutan and Cape Town.

The Canadian subsidiary, State Bank of India (Canada) also dates to 1982. It has seven branches, four in the Toronto area and three 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.

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 (S.B.I.) Branch at Tsim Sha Tsui, Hong Kong

In 1982, the bank established a subsidiary, State Bank of India (California), which now has ten branches – nine branches in the state of California and one in Washington, D.C. 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 Hindu States of Nepal (Hindu Rajya 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 forNepalese 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

Associate banks

Main Branch of SBI in Mumbai.

SBI now has five associate banks, 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 Bikaner & Jaipur

State Bank of Hyderabad

State Bank of Mysore

State Bank of Patiala

State Bank of Travancore

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 2014: SBI has 43,515 ATMs and SBI group (including associate banks) has 51,491 ATMs. SBI has become the first bank to install an ATM at Drass in the Jammu & Kashmir Kargil region. This was the Bank's 27,032nd ATM on 27 July 2012.

Logo and slogan

The logo of the State Bank of India is a blue circle with a small cut in the bottom that depicts perfection and the small man the common man - being the center of the bank's business. The logo came from National Institute of Design(NID), Ahmedabad and it was inspired by Kankaria Lake, Ahmedabad.

Slogans: "PURE BANKING, NOTHING ELSE", "WITH YOU - ALL THE WAY", "A BANK OF THE COMMON MAN", "THE BANKER TO EVERY INDIAN", "THE NATION BANKS ON US"

Listings and shareholding

As on 31 March 2014, Government of India held around 58.59% equity shares in SBI. Life Insurance Corporation of India is the largest non-promoter shareholder in the company with 14.99% shareholding.

Shareholders Shareholding

Promoters: Government of India

58.60%

Banks & Insurance Companies 16.79%

FIIs/GDRs/OCBs/NRIs 12.04%

Mutual Funds & UTI 03.78%

Private Corporate Bodies 02.87%

Others 5.92%

Total 100.0%

The equity shares of SBI are listed on the Bombay Stock Exchange, where it is a constituent of the BSE SENSEX index,[20] and the National Stock Exchange of India, where it is a constituent of the CNX Nifty. Its Global Depository Receipts (GDRs) are listed on the London Stock Exchange.

Employees

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 4.85 lakhs.

NEED OF MIS IN BANKING

• Regulatory requirements indicated by the RBI for preparation of Off-site Monitoring Surveillance (OSMOS) Reports on a regular basis in electronic format

• Need for timely submission of Balance Sheets and Profit & Loss Accounts

• Need for Inter-Branch Reconciliation of Accounts within a definite time frame

Need to undertake risk management strategies and for this purpose build up appropriate sets of data and market intelligence reports

CORE BANKING

• 100% business is on CBS

• 8500 ATMs : Over 2 million transactions per day

• Internet banking services

• SBI 100% network globally

SERVICES IN SBI

• Mobile Payments

• Electronic Clearing Services(Credit)

• NEFT

• RTGS

• Ticket booking online

BANKING & INFORMATION NETWORK

Fast and efficient tax collection

Timely settlement of funds Real time MIS Timely payment of benefits Efficient & speedy transfer of funds

Govt.-2-Employee

Govt.-2-Business

Govt.-2-Customer

CONTD…TECHNOLOGICAL ARCHITECTURE

Centralized

Accounting

Software(CAS)

Receipts

Paymen

ts

Remittances

Core banking solution & technology of SBI

The solution chosen by the SBI after due evaluation and keeping the above objectives in mind is a

SUPPLY CHAINFour Tier Transfer Process

The functionality of payments to various vendors and salary expenses is also included in this application

Central Transfers funds to StateState will Transfer

funds to DistrictDistrict in turn will Transfer to Block andFinally Block will

Transfer to Beneficiary

Core banking solution of Financial Network Services ,Australia, which has already been successfully implemented in diverse centralized environment.

SBI had chosen TCS Limited ,the largest software and service company in the country, to customize the product to their needs and also to undertake pilot implementation.

Teams have been formed by the vendors as well as the Bank, which define the product specific functionalities and customize the software to meet the needs of the bank.

Along side ,where ever considered expedient and in the interest of customers ,appropriate re-engineering of present systems and procedures and process will be brought about to exploit full potential of the package.

 

It is a centralised data processing with IT application

which branches and administrative offices are connected with the objective

to provide any time any where banking

efficiency in operation

strengthening MIS/DSS/EIS

handling effectively strategic areas like – trade Finance, Treasury, ALM(Asset Liability Management) etc.

M/S financial network services (FNS), Australia

-B@ncs24: software SBI use in CBS.

-B@ncslink: linking software

M/S comlink services, USA

-Finance one: corporate general ledger part

M/S china system, hongkong/ dubai

-Exim bills: trade finance package.

M/S Oracle corporation, USA

-Oracle 9i: data base management

Unix/ window 2000

-Operating systems

M/S data craft, Singapore

-Maintenance of SBI connect: leased line connectivity

Bharat Sanchar Nigam ltd (BSNL), india

-Leased line for SBI connect & integerated services digital network (ISDN) line as a standby support.

HP systems, USA

-Hardware supplier

Tata consultancy services(TCS) ltd

-Customisation, integration and implementation

HCL- comnet

-VSAT

Differences of CBS from Bank master

Bank master is reference information about a financial institution that is required to conduct business transactions with this financial institution, such as the institution’s

contact information, offices and branches, clearing codes such as BIC(Bank Identifier Code), and domestic clearing codes.

Centralised data system with on-line, real time transactions

Customers of bank and not just of a branch

Anytime/anywhere banking

Extensive use of mouse with keyboard

Use of internet explorer.

Multiple screen usage

All users are tellers here

CBS supports MIS/DSS/EIS(Management Information System/Decision Support System/Executive Information System)

CBS VERSIONS

Present version - 1.2- from 2nd October, 2004

Earlier versions – 1.1, 1.105 & 1.11

IMPACT

With the implementation of core banking, branches will be business fronts.

The concept of a ‘brick and mortar’ branch will steadily lose its relevance.

With the facility of networking of branches and many delivery channels, which will facilitate off-branch banking, physical presence of customers at branches will diminish; so will be the number of vouchers handled at branches.

The requirements of a branch for reports can be taken care of by a Shared Operations Centre, for a group of branches in a particular geographical area.

Inter-branch transactions will also reduce considerably, as there will be no need to issue a draft or pass an entry through Branch Clearing General Account between networked branches.

A whole lot of information about the customer would be available for the front line operator, facilitating cross selling of products

Real time, on line information about a customer or a branch would be available to controllers at various level

ARCHITECTURE

The basic architecture of MIS of SBI is the centralized processing.

With Its applications and data residing at Central Data Centre(CDC) to be located in Navi Mumbai, to which all the branches and administrative offices are connected.

This type of processing has been preferred by the bank for networking of branches, dictated by volumes and to ensure on-line, real time MIS for decision making.

So far, the different branches are computerizes only on a standalone basis

FEATURES OF SYSTEM

24X7 Banking

Anywhere Banking.

Integration with strategic sectors

Strengthening MIS, DSS and EIS

 Business Process Re- engineering (BPR ) enabler

AREAS OF ENHANCED FUNCTIONALITIES

Core Banking will bring about connectivity between branches , making on-line, real time transaction processing possible.

The customer under Core Banking would be customers of the bank, not just the customers of a particular branch. They can, seamlessly, transact business with the Bank wherever they are.

BANK MASTER

Bankmaster is essentially a transaction processing software with not much of MIS support. Core Banking would address this vital need, apart from MIS, would facilitate Decision Support System/ Executive Information System, greatly facilitating timely executive inputs.

Many value added services like ATM, Internet Banking will be available to customer.

While Bankmaster takes care of stand- alone computerization of a Branch, Core Banking will bring about connectivity between branches, making on-line, real time transaction processing possible.

The customer under Core Banking would be customers of the bank, not just the customers of a particular branch. They can, seamlessly, transact business with the Bank wherever they are.

The solution lends itself to versatility and flexibility, even while retaining the much needed security features.