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  • 8/2/2019 State Bank of India History

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    State Bank of India

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    State Bank of India

    Type Public

    Traded as

    NSE:SBIN

    BSE:500112

    LSE:SBID

    BSE SENSEX Constituent

    Industry Banking,Financial services

    Founded 1 July 1955

    Headquarters Mumbai,Maharashtra,India

    Area served Worldwide

    Key peoplePratip Chaudhuri

    (Chairman)

    ProductsCredit cards,Consumer banking,

    corporate banking,finance and insurance,

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    investment banking,mortgage loans,

    private banking,wealth management

    Revenue US$32.44 billion (2011)[1]

    Profit US$ 02.34 billion (2011)[1]

    Total assets US$ 369.56 billion (2011)[1]

    Total equity US$ 018.71 billion (2011)[1]

    Owner(s) Government of India

    Employees 222,933 (2011)[1]

    Website www.statebankofindia.com

    State Bank of India (SBI) (NSE:SBIN,BSE:500112,LSE:SBID) is the largest banking andfinancial servicescompany in India by revenue, assets andmarket capitalization. Its astate-ownedcorporation with its headquarters inMumbai, Maharashtra. As of March 2011, it had

    assets of US$ 370 billion with over 13,000 outlets including 150 overseas branches and agentsglobally. The bank traces its ancestry toBritish India, through theImperial Bank of India, to thefounding in 1806 of theBank of Calcutta, making it the oldest commercial bank in theIndianSubcontinent. Bank of Madras merged into the other two presidency banks, Bank of Calcutta andBank of Bombay to form Imperial Bank of India, which in turn became State Bank of India. Thegovernment of Indianationalized the Imperial Bank of India in 1955, with theReserve Bank ofIndiataking a 60% stake, and renamed it the State Bank of India. In 2008, the government tookover the stake held by the Reserve Bank of India. SBI is ranked #292 globally inFortune Global500list in 2011.[2]

    SBI provides a range of banking products through its vast network of branches in India and

    overseas, including products aimed atnon-resident Indians(NRIs). The State Bank Group, withover 16,000 branches, has the largest banking branch network in India. SBI has 14 Local HeadOffices situated at Chandigarh, Delhi, Lucknow, Patna, Kolkata, Guwahati (North East Circle),Bhuwaneshwar, Hyderabad, Chennai, Trivandram, Banglore, Mumbai, Bhopal & Ahmedabadand 57 Zonal Offices that are located at important cities throughout the country. It also hasaround 130 branches overseas.

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    SBI is a regional banking behemoth and is one of the largest financial institutions in the world. Ithas a market share among Indian commercial banks of about 20% in deposits and loans.[3]TheState Bank of India is the 29th most reputed company in the world according toForbes.[4]AlsoSBI is the only bank featured in the coveted "top 10 brands of India" list in an annual surveyconducted byBrand Financeand The Economic Times in 2010.[5]

    The State Bank of India is the largest of theBig Fourbanks of India, along withICICI Bank,Punjab National BankandHDFC Bankits main competitors.[6]

    Contents

    [hide]

    1 History 2 International presence 3 Associate banks 4 Non-banking subsidiaries 5 Current Board of Directors 6 Branches of SBI 7 Symbol and slogan 8 Loan to NTPC 9 Employees 10 Recent awards and recognitions 11 See also 12 References 13 External links

    [edit] History

    seal ofImperial Bank of India.

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    The roots of the State Bank of India rest in the first decade of 19th century, when theBank ofCalcutta, later renamed theBank of Bengal, was established on 2 June 1806. The Bank of Bengalwas one of three Presidency banks, the other two being theBank of Bombay(incorporated on 15April 1840) and theBank of Madras(incorporated on 1 July 1843). All three Presidency bankswere incorporated asjoint stock companiesand were the result of theroyal charters. These three

    banks received the exclusive right to issue paper currency in 1861 with the Paper Currency Act,a right they retained until the formation of theReserve Bank of India. The Presidency banksamalgamated on 27 January 1921, and the reorganized banking entity took as its name :ImperialBank of India. The Imperial Bank of India remained a joint stock company

    Pursuant to the provisions of the State Bank of India Act (1955), theReserve Bank of India,which isIndia's central bank, acquired a controlling interest in the Imperial Bank of India. On 30April 1955, the Imperial Bank of India became the State Bank of India. Thegovernment of Indiarecently acquired the Reserve Bank of India's stake in SBI so as to remove any conflict ofinterest because the RBI is the country's banking regulatory authority.

    In 1959, the government passed the State Bank of India (Subsidiary Banks) Act, enabling theState Bank of India to take over eight former state-associated banks as its subsidiaries. On 13September 2008, theState Bank of Saurashtra, one of its associate banks, merged with the StateBank of India.

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

    [edit] International presence

    The Israeli branch of the State Bank of India located inRamat Gan.

    As of 31 December 2009, the bank had 157 overseas offices spread over 32 countries. It hasbranches of the parent inColombo,Dhaka, Frankfurt, Hong Kong,Tehran,Johannesburg,

    London, Los Angeles, Male in theMaldives,Muscat, Dubai, New York,Osaka, Sydney, andTokyo. It hasoffshore bankingunits in theBahamas, Bahrain, andSingapore, and representativeoffices inBhutanandCape Town. It also has an ADB in Boston, USA.

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

    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.wikipedia.org/wiki/Royal_charterhttp://en.wikipedia.org/wiki/Joint_stock_companyhttp://en.wikipedia.org/wiki/Bank_of_Madrashttp://en.wikipedia.org/wiki/Bank_of_Bombayhttp://en.wikipedia.org/wiki/Bank_of_Bengalhttp://en.wikipedia.org/wiki/Bank_of_Calcuttahttp://en.wikipedia.org/wiki/Bank_of_Calcutta
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    In 1982, the bank established a subsidiary, State Bank of India (California), which now has tenbranchesnine branches in the state of California and one in Washington, D.C. The 10th branchwas opened in Fremont, California on 28 March 2011. The other eight branches in California arelocated in Los Angeles, Artesia, San Jose, Canoga Park, Fresno, San Diego, Tustin andBakersfield.

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

    InNigeria, SBI operates as INMB Bank. This bank began in 1981 as the Indo-Nigerian MerchantBank and received permission in 2002 to commence retail banking. It now has five branches inNigeria.

    InNepal, SBI owns 55% of Nepal SBI Bank, which has branches throughout the country. InMoscow, SBI owns 60% ofCommercial Bank of India, withCanara Bankowning the rest. InIndonesia, it owns 76% of PT Bank Indo Monex.

    The State Bank of India already has a branch in Shanghai and plans to open one inTianjin.[7]

    InKenya, State Bank of India owns 76% ofGiro Commercial Bank, which it acquired forUS$8 million in October 2005.[8]..

    The State Bank of India (with 74% of the total capital) alongwith the largest global Bankinggroup-"BNP Paribas Cardiff",(with 26% of the remaining capital) Headquatered in Paris formeda Joint venture which established,India's One of the most Reputed and trusted Life InsuranceCompany 's named "SBI Life Insurance company Ltd."in March-2001.

    [edit] Associate banks

    Main Branch of SBI in Mumbai.

    SBI has five associate banks; all use the same logo of a blue circle and all the associates 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

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    State Bank of Patiala State Bank of Travancore

    Earlier SBI had only seven associate banks that constituted the State Bank Group. Originally, thethen seven banks that became the associate banks belonged toprincely statesuntil the

    government nationalised them between October 1959 and May 1960. In tune with the first FiveYear Plan, emphasising the development of rural India, the government integrated these banksinto the State Bank of India system to expand its rural outreach. There has been a proposal tomerge all the associate banks into SBI to create a "mega bank" and streamline operations.[9]

    The first step towards unification occurred on 13 August 2008 whenState Bank of Saurashtramerged with SBI, reducing the number of state banks from seven to six. Then on 19 June 2009the SBI board approved the merger of its subsidiary,State Bank of Indore, with itself. SBI holds98.3% in State Bank of Indore. (Individuals who held the shares prior to its takeover by thegovernment hold the balance of 1.77%.)[10]

    The acquisition of State Bank of Indore added 470 branches to SBI's existing network of 12,448and over 21,000 ATMs. Also, following the acquisition, SBI's total assets will inch very close tothe Rs 10-lakh crore mark. Total assets of SBI and theState Bank of Indorestood at Rs 998,119crore as on March 2009. The process of merging of State Bank of Indore was completed by April2010, and the SBI Indore Branches started functioning as SBI branches on 26 August 2010.[11]

    State Bank of IndiaMumbai LHO.

    [edit] Non-banking subsidiaries

    Apart from its five associate banks, SBI also has the following non-banking subsidiaries:

    1.SBI Capital Markets Ltd

    2.SBI Funds Management Pvt Ltd

    3.SBI Factors & Commercial Services Pvt Ltd

    4.SBI Cards & Payments Services Pvt. Ltd. (SBICPSL)

    5.SBI DFHI Ltd

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    6.SBI Life Insurance Company Ltd.

    7.SBI General Insurance

    [edit] Current Board of Directors

    After the end ofO. P. Bhatt's reign as SBI Chairman on 31st March, 2011, the post was takenover byPratip Chaudhuri, who is the former Deputy Managing Director of the InternationalDivision of SBI. As on 4th August, 2011, there are twelve members in the SBI Board ofDirectors, includingSubir Gokarn, who is also one of the four Deputy Governors of theReserveBank of India. The complete list of the Board members are:

    1. Pratip Chaudhuri (Chairman)2. Hemant G. Contractor (Managing Director)3. Diwakar Gupta (Managing Director)4. A Krishna Kumar (Managing Director)5. Dileep C Choksi (Director)6. S. Venkatachalam (Director)7. D. Sundaram (Director)8. Parthasarathy Iyengar (Director)9. G. D. Nadaf (Officer Employee Director)10.Rashpal Malhotra (Director)11.D. K. Mittal (Director)12.Subir V. Gokarn (Director)[12]

    [edit] Branches of SBI

    State Bank of India has 172 foreign offices in 37 countries across the globe. SBI has about 25,000 ATMs (25,000th ATM was inaugurated by the then Chairman of

    State Bank Shri O.P. Bhatt on 31 March 2011, the day of his retirement); and SBIgroup(including associate banks) has about 45,000 ATMs.

    SBI has 21,500 branches, including branches that belong to its associate banks. SBI includes 99345 offices in India. India's number one ADB is in bellary i e State bank of India bellary ADB

    [edit] Symbol and slogan

    The symbol of the State Bank of India is a circle and not key hole and a small man at thecentre of the circle. A circle depicts perfection and the common man being the centre ofthe bank's business.

    Slogans : "Pure banking nothing else"also includes : "With you - all the way" and : "a bank of common man"

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    [edit] Loan to NTPC

    On 8th July, 2011, SBI agreed to give a loan of Rs 10,000 crore to NTPC (National ThermalPower Corporation), making it the largest loan SBI had ever given to any single customer in itsentire 200 year history. The loan had a "door-to-door" maturity period of 12 years, accompanied

    by a drawdown period of four years. An NTPC press release said at the time of the declaration ofthe loan that "The loan shall be utilized for financing the capital expenditure of ongoing and newprojects."

    NTPC chairman at the time, Arup Roy Choudhury clarified that the loan amount would be usedto add 128,000 MW capacity by the end of year 2032 (NTPC'c capacity at the time of thedeclaration of the loan was 34,584 MW).[13]

    This loan was offered amidst declining finance for power projects in India, which were a directresult of the lending constraints placed by theReserve Bank of Indiaand the increased riskawareness of power projects. It will also help minimize the shortfall of around Rs 4.51 Trillion

    that the Power Ministry of India expected to incur in achieving the objectives of the EleventhFive Year Plan (This plan targeted an addition of 78,577 MW or power generation capacitywhich would require an investment of Rs 10.3 Trillion).[14]

    [edit] Employees

    SBI has turned into the third-largest employer inIndiaamong listed companies afterCoal IndiaLimited(383,347) andTata Consultancy Services(226,751).[15]

    [edit] Recent awards and recognitions

    Best Online Banking Award, Best Customer Initiative Award & Best Risk ManagementAward (Runner Up) by IBA Banking Technology Awards 2010

    The Bank of the year 2009, India (won the second year in a row) by The BankerMagazine

    Best BankLarge and Most Socially Responsible Bank by the Business Bank Awards2009

    Best Bank 2009 by Business India The Most Trusted Brand 2009 by The Economic Times Most Preferred Bank & Most preferred Home loan provider by CNBC Visionaries of Financial Inclusion By FINO Technology Bank of the Year by IBA Banking Technology Awards SKOCH Award 2010 for Virtual corporation Category for its e-payment solution The Brand Trust Report[16]: 11th most trusted brand in India.

    [edit] See also

    List of companies of India

    http://en.wikipedia.org/w/index.php?title=State_Bank_of_India&action=edit&section=8http://en.wikipedia.org/w/index.php?title=State_Bank_of_India&action=edit&section=8http://en.wikipedia.org/wiki/National_Thermal_Power_Corporationhttp://en.wikipedia.org/wiki/National_Thermal_Power_Corporationhttp://en.wikipedia.org/wiki/National_Thermal_Power_Corporationhttp://en.wikipedia.org/wiki/National_Thermal_Power_Corporationhttp://en.wikipedia.org/wiki/State_Bank_of_India#cite_note-12http://en.wikipedia.org/wiki/State_Bank_of_India#cite_note-12http://en.wikipedia.org/wiki/State_Bank_of_India#cite_note-12http://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/State_Bank_of_India#cite_note-13http://en.wikipedia.org/wiki/State_Bank_of_India#cite_note-13http://en.wikipedia.org/wiki/State_Bank_of_India#cite_note-13http://en.wikipedia.org/w/index.php?title=State_Bank_of_India&action=edit&section=9http://en.wikipedia.org/w/index.php?title=State_Bank_of_India&action=edit&section=9http://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Coal_India_Limitedhttp://en.wikipedia.org/wiki/Coal_India_Limitedhttp://en.wikipedia.org/wiki/Coal_India_Limitedhttp://en.wikipedia.org/wiki/Coal_India_Limitedhttp://en.wikipedia.org/wiki/Tata_Consultancy_Serviceshttp://en.wikipedia.org/wiki/Tata_Consultancy_Serviceshttp://en.wikipedia.org/wiki/Tata_Consultancy_Serviceshttp://en.wikipedia.org/wiki/State_Bank_of_India#cite_note-14http://en.wikipedia.org/wiki/State_Bank_of_India#cite_note-14http://en.wikipedia.org/wiki/State_Bank_of_India#cite_note-14http://en.wikipedia.org/w/index.php?title=State_Bank_of_India&action=edit&section=10http://en.wikipedia.org/w/index.php?title=State_Bank_of_India&action=edit&section=10http://en.wikipedia.org/wiki/The_Brand_Trust_Reporthttp://en.wikipedia.org/wiki/The_Brand_Trust_Reporthttp://en.wikipedia.org/wiki/The_Brand_Trust_Reporthttp://en.wikipedia.org/w/index.php?title=State_Bank_of_India&action=edit&section=11http://en.wikipedia.org/w/index.php?title=State_Bank_of_India&action=edit&section=11http://en.wikipedia.org/wiki/List_of_companies_of_Indiahttp://en.wikipedia.org/wiki/List_of_companies_of_Indiahttp://en.wikipedia.org/wiki/List_of_companies_of_Indiahttp://en.wikipedia.org/w/index.php?title=State_Bank_of_India&action=edit&section=11http://en.wikipedia.org/wiki/The_Brand_Trust_Reporthttp://en.wikipedia.org/wiki/The_Brand_Trust_Reporthttp://en.wikipedia.org/w/index.php?title=State_Bank_of_India&action=edit&section=10http://en.wikipedia.org/wiki/State_Bank_of_India#cite_note-14http://en.wikipedia.org/wiki/Tata_Consultancy_Serviceshttp://en.wikipedia.org/wiki/Coal_India_Limitedhttp://en.wikipedia.org/wiki/Coal_India_Limitedhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/w/index.php?title=State_Bank_of_India&action=edit&section=9http://en.wikipedia.org/wiki/State_Bank_of_India#cite_note-13http://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/State_Bank_of_India#cite_note-12http://en.wikipedia.org/wiki/National_Thermal_Power_Corporationhttp://en.wikipedia.org/wiki/National_Thermal_Power_Corporationhttp://en.wikipedia.org/w/index.php?title=State_Bank_of_India&action=edit&section=8
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    List of banks in India Fortune India 500 Fortune Global 500

    [edit] References

    1. ^abcde"2010 SBI Form 10-K".http://money.cnn.com/magazines/fortune/global500/2011/snapshots/7646.html. Retrieved October 7, 2011.

    2. ^SBI in Fortune India list3. ^"SBI accounts for one-fifth of country's loans". Livemint.com. 25 January 2009.

    http://www.livemint.com/2009/01/25230613/SBI-ICICI-Bank-profits-rise-o.html. Retrieved 20 August2010.

    4. ^Kneale, Klaus (6 May 2009)."World's Most Reputable Companies: The Rankings".Forbes.http://www.forbes.com/2009/05/06/world-reputable-companies-leadership-reputation-table.html. Retrieved20 August 2010.

    5. ^"India's top 10 brands". business.rediff.com.http://business.rediff.com/slide-show/2010/oct/26/slide-show-1-tata-motors-is-indias-top-brand.htm. Retrieved 26 Oct 2010.

    6. ^"Big Four (banks)Wikipedia, the free encyclopaedia". En.wikipedia.org.http://en.wikipedia.org/wiki/Big_Four_(banks). Retrieved 16 July 2010.

    7. ^"State Bank of India to set up branch in China's Tianjin".Forbes. 21 November 2007.http://www.forbes.com/afxnewslimited/feeds/afx/2007/11/21/afx4365862.html. Retrieved 16 July 2010.

    8. ^"State Bank of India Acquired 76% Shareholding in Giro Commercial Bank In 2005".Accessmylibrary.com. 8 October 2005.http://www.accessmylibrary.com/article-1G1-137297728/sbi-buy-76-kenyas.html. Retrieved 21 December 2010.

    9. ^"Indian Banks' Association". Iba.org.in. 23 April 2005.http://www.iba.org.in/viewmembanks.asp?id=2.Retrieved 21 December 2010.

    10. ^Business Standard (21 June 2010)."Approvals for State Bank of Indore merger by July : SBI".http://www.cmlinks.com/sbi/NewsText.asp?Code=1375&period=1001&srno=9172002038.

    11. ^Economic Times (26 August 2010)."State Bank of Indore branches to become SBI units from Aug 26 :SBI".The Times Of India.http://economictimes.indiatimes.com/Banking/articleshow/6434466.cms.

    12. ^http://www.statebankofindia.com/user.htm13. ^"NTPC secures 10k cr loan from SBI".The Times Of India. July 9, 2011.http://articles.timesofindia.indiatimes.com/2011-07-09/india-business/29754988_1_rupee-loan-ntpc-

    chairman-state-run-generation-utility. Retrieved 19 October 2011.14. ^"NTPC signs Rs10,000 cr loan pact with SBI".liveMint. July 8, 2011.

    http://www.livemint.com/2011/07/08193756/NTPC-signs-Rs10000-cr-loan-pa.html. Retrieved 19 October2011.

    15. ^Employee comparision16. ^- Indiatoday "Brand Mahatma lags behind Sachin, Aamir: Study". indiatoday.intoday.in. 2011-01-28.

    http://indiatoday.intoday.in/story/mahatma-gandhi-lags-behind-sachin-aamir-in-brand-study/1/127918.html- Indiatoday.

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