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The State Bank of India, the country’s oldest Bank and a premier in terms of balance sheet size, number

of branches, market capitalization and profits is today going through a momentous phase of Change and Transformation – the two hundred year old Public sector behemoth is today stirring out of its Public Sector legacy and moving with an agility to give the Private and Foreign Banks a run for their money. The bank is entering into many new businesses with strategic tie ups – Pension Funds, General Insurance, Custodial Services, Private Equity, Mobile Banking, Point of Sale Merchant Acquisition, Advisory Services, structured products etc – each one of these initiatives having a huge potential for growth. The Bank is forging ahead with cutting edge technology and innovative new banking models, to expand its Rural Banking base, looking at the vast untapped potential in the hinterland and proposes to cover 100,000 villages by 2014. Introduction State Bank of India is the largest and one of the oldest commercial bank in India, in existence for more than 200 years. The bank provides a full range of corporate, commercial and retail banking services in India. Indian central bank namely Reserve Bank of India (RBI) is the major shareholder of the bank with 59.7% stake. SBI has the largest branch and ATM network spread across every corner of India. The bank has a branch network of over 14,000 branches (including subsidiaries). As of 31 March 2012, the bank had 173 overseas offices spread over 34 countries. In recent past, SBI has acquired banks in Mauritius, Kenya and Indonesia. As of now the bank has total staff strength of 292,215 as on 23rd July 2012. Of this, 29.51% are officers, 45.19% clerical staff and the remaining 25.30% are sub-staff. The bank is listed on the Bombay Stock Exchange, National Stock Exchange, Kolkata Stock Exchange, Chennai Stock Exchange and Ahmedabad Stock Exchange. SBI group accounts for around 25% of the total business of the banking industry while it accounts for 35% of the total foreign exchange in India. SBI provides a range of banking products through its vast network of branches in India and overseas, including products aimed at non-resident Indians (NRIs). The State Bank Group has the largest banking branch network in India. SBI has 14 local head offices situated at Chandigarh (Punjab & Haryana), Delhi, Lucknow (Uttar Pradesh), Patna (Bihar), Kolkata (West Bengal),

Guwahati (North East Circle), Bhubaneswar (Orissa), Hyderabad (Andhra Pradesh), Chennai (Tamil Nadu), Trivandrum (Kerala), Bengaluru (Karnataka), Mumbai (Maharashtra), Bhopal (Madhya Pradesh) & Ahmedabad (Gujarat) and 57 Zonal Offices that are located at important cities throughout the country.

Mission statement: To retain the banks position as the premier Indian financial services. It also aims to be a group with world class standards and significant global business commitments to excellence in customer, shareholder and employee satisfaction so as to play a leading role in expanding and diversifying financial services while continuing emphasis on its development banking role.

Vision: To be a premier Indian financial services group with global perspective, world class standard of the efficiency and professionalism and also its core institutional values, To retain its position in the country as a pioneer in developing countries, It also aims to maximize its shareholders value through high sustained earnings per share, To become an institution with a culture of mutual care and commitment. It also focuses on a pleasant working environment to have continuous learning opportunities.

Values:      Excellence in customer service Profit orientation Belonging and commitment to bank Fairness in all dealings and relations Risk taking and innovations     Team playing Learning and renewal Integrity Transparency policies and and discipline in



were mostly proprietary directors representing the large European managing agency houses in India. Business The business of the banks was initially confined to discounting of bills of exchange or other negotiable private securities. Loans were restricted to Rs. The security for such loans was public securities. mule twist and silk goods were also granted but such finance by way of cash credits gained momentum only from the third decade of the nineteenth century. 3 . one of whom was elected as the president of the board. The Bank of Bombay (15 April 1840) and the Bank of Madras (1 July 1843) followed the Bank of Bengal. salt woollens. indigo. plate. All commodities. including tea. were either pledged or hypothecated to the bank. A unique institution. keeping cash accounts and receiving deposits and issuing and circulating cash Lakh and the period of accommodation confined to three months only.HISTORY EVOLUTION OF SBI The origin of the State Bank of India goes back to the first decade of the nineteenth century with the establishment of the Bank of Calcutta in Calcutta on 2 June 1806. which managed the affairs of each bank. commonly called Company's Paper. or goods 'not of a perishable nature' and no interest could be charged beyond a rate of twelve per cent. Loans against goods like opium. These three banks remained at the top of modern banking in India till their amalgamation as the Imperial Bank of India on 27 January 1921. it was the first joint-stock bank of British India sponsored by the Government of Bengal. The three banks were governed by royal charters. treasure. cotton piece goods. sugar and jute. which were revised from time to time. Three years later the bank received its charter and was re-designed as the Bank of Bengal (2 January 1809). jewels. which began to be financed later. cotton. Each charter provided for a share capital. bullion. The rest were government nominees. invariably civil servants. four-fifth of which were privately subscribed and the rest owned by the provincial government. The members of the board of directors.

72. sub offices and three Local Head Offices inherited from the 4 . When India attained freedom.85 crores. First Five Year Plan In 1951. investments and advances. the Imperial Bank had a capital base (including reserves) of Rs. the former state-owned or state-associate banks.94 crores respectively and a network of 172 branches and more than 200 sub offices extending all over the country. enabling the State Bank of India to take over eight former State-associated banks as its subsidiaries (later named Associates). when the First Five Year Plan was launched.11. therefore.14 crores and Rs. The financial status and security inherited from its forerunners no doubt provided a firm and durable platform. the State Bank of India (Subsidiary Banks) Act was passed in 1959. deposits and advances of Rs. The commercial banks of the country including the Imperial Bank of India had till then confined their operations to the urban sector and were not equipped to respond to the emergent needs of economic regeneration of the rural areas. the All India Rural Credit Survey Committee recommended the creation of a state-partnered and state-sponsored bank by taking over the Imperial Bank of India. and integrating with it. the increases in some cases amounting to more than six-fold. to serve the economy in general and the rural sector in particular. In order. Later. An act was accordingly passed in Parliament in May 1955 and the State Bank of India was constituted on 1 July 1955. But the lofty traditions of banking which the Imperial Bank consistently maintained and the high standard of integrity it observed in its operations inspired confidence in its depositors that no other bank in India could perhaps then equal.275. All these enabled the Imperial Bank to acquire a pre-eminent position in the Indian banking industry and also secure a vital place in the country's economic life.Imperial Bank The Imperial Bank during the three and a half decades of its existence recorded an impressive growth in terms of offices. More than a quarter of the resources of the Indian banking system thus passed under the direct control of the State. reserves. The State Bank of India was thus born with a new sense of social purpose aided by the 480 offices comprising branches. deposits. the development of rural India was given the highest priority.

The State Bank of India was destined to act as the pacesetter in this respect and lead the Indian banking system into the exciting field of national development. The concept of banking as mere repositories of the community's savings and lenders to creditworthy parties was soon to give way to the concept of purposeful banking subserving the growing and diversified financial needs of planned economic development. Competitors and other players in the field:- Top Performing Public Sector Banks      Andhra Bank Allahabad Bank Punjab National Bank Dena Bank Vijaya Bank Top Performing Private Sector Banks      HDFC Bank ICICI Bank AXIS Bank Kotak Mahindra Bank Centurion Bank of Punjab Top Performing Foreign Banks   Citibank Standard Chartered 5 .Imperial Bank.

the bank still carries the perception of traditional bank to new age customers Opportunities  SBI’s merger with five more banks namely State Bank of Hyderebad. State of bank of Travancore and State bank of Mysore are in approval stage   Mergers will result in expansion of market share to defend its number one position Since the bank is yet to modernize few of its banking operations.   HSBC Bank ABN AMRO Bank American Express Strengths      SBI is the largest bank in India in terms of market share. As per recent data the bank has more than 14. revenue and assets. there is a better scope of using advanced technologies and software to improve customer relations 6 . State bank of Bikaber and Jaipur. State bank of Patiala.000 outlets and 25.000 ATM centers The bank has its presence in 32 countries engaging currency trade all over the world Strong domestic market position sustaining reach and customer confidence Strong capital position helping pursue growth initiatives Weakness   Lack of proper technology driven services when compared to private banks In spite of modernization.

Threats  FDIs allowed in banking sector is increased to 49% . this is a major threat to SBI as people tend to switch to foreign banks for better facilities and technologies in banking service  Customer prefer to switch to private banks and financial service providers for loans and mortgages. as SBI involves stringent verification procedures and take long time for processing. 7 .

He joined the State Bank of India 38 years back as a probationary officer in 1974. Treasury and Operations. He took charge from O. on 7 April 2011. besides overseas experience in Canada. Credit. a 1974 batch alumnus of University Business School Chandigarh.Prior to that he was the Deputy Managing Director (DMD) of the International Division of SBI. 8 .Board of Directors Pratip Chaudhuri (born 1954). Bhatt. Managing Director. is the current chairman of the State Bank of India. He has experience covering International Banking.P. Chennai Circle. He is also credited with the merger of State Bank of Saurashtra in 2008. He was earlier posted as Chief General Manager (Foreign Offices). Corporate Banking. where he was a director. former State Bank of Saurashtra and Chief General Manager.He has held several important positions in SBI including Chief General Manager of Chennai Circle.

(Individuals who held the shares prior to its takeover by the government hold the balance of 1. The process of merging of State Bank of Indore was completed by April 2010. and the SBI Indore Branches started functioning as SBI branches on 26 August 2010. There has been a proposal to merge all the associate banks into SBI to create a "mega bank" and streamline operations. Then on 19 June 2009 the SBI board approved the merger of its subsidiary. In tune with the first Five Year Plan. Originally.Associate Banks SBI has five associate banks:        State Bank of Bikaner & Jaipur State Bank of Hyderabad State Bank of Mysore State Bank of Patiala State Bank of Travancore State Bank of Saurashtra . with itself. following the acquisition. emphasizing the development of rural India.77%. The acquisition of State Bank of Indore added 470 branches to SBI's existing network of 12. Also. Total assets of SBI and the State Bank of Indore stood at Rs 998.merged with SBI in 2010. State Bank of Indore . The first step towards unification occurred on 13 August 2008 when State Bank of Saurashtra merged with SBI. State Bank of Indore. reducing the number of state banks from seven to six.448 and over 21. SBI holds 98. constitute the State Bank Group.3% in State Bank of Indore. the then seven banks that became the associate banks belonged to princely states until the government nationalised them between October 1959 and May 1960.000 ATMs. with SBI. followed by the regional headquarters' name.merged with SBI in 2008. SBI's total assets will inch very close to the Rs 10-lakh crore mark.119 crore as on March 2009. Earlier SBI had only seven associate banks that. 9 . All use the same logo as SBI and all the associates use the "State Bank of" name. the government integrated these banks into the State Bank of India to expand its rural outreach.

which it acquired for US$8 million in October 2005. In 1990. it owns 76% of PT Bank Indo Monex. In Kenya. In Moscow. SBI owns 60% of Commercial Bank of India. Frankfurt.C. SBI operates as INMB Bank. D. London. which has branches throughout the country. Colombo. It has seven branches. New York. In Nigeria. San Jose. 10 . Dhaka. State Bank of India owns 76% of Giro Commercial Bank. Bahrain. State Bank of India (California). Male in the Maldives.International Presence As of 31 March 2012. Tustin and Bakersfield. it established an offshore bank: State Bank of India (Mauritius). with Canara Bank owning the rest. It also has an ADB in Boston. SBI operates several foreign subsidiaries or affiliates. San Diego. Johannesburg. Sydney. In 1982. Los Angeles. It has offshore banking units in the Bahamas. USA. In Indonesia. The Canadian subsidiary. Canoga Park. It has branches of the parent in Moscow. The State Bank of India already has a branch in Shanghai and plans to open one in Tianjin (China). It now has five branches in Nigeria. State Bank of India (Canada) also dates to 1982. Dubai. In Nepal. the bank had 173 overseas offices spread over 34 countries. The other eight branches in California are located in Los Angeles. SBI owns 55% of Nepal SBI Bank. which now has ten branches – nine branches in the state of California and one in Washington. the bank established a subsidiary. Artesia. Hong Kong. and Tokyo. California on 28 March 2011. Fresno. and Singapore. The 10th branch was opened in Fremont. Tehran. Osaka. Muscat. and representative offices in Bhutan and Cape Town. four in the Toronto area and three in British Columbia. This bank began in 1981 as the Indo-Nigerian Merchant Bank and received permission in 2002 to commence retail banking.

• Non. State Bank of Patiala (SBP).SBI Life Insurance Company Ltd (SBI LIFE). State Bank of Hyderabad (SBH).SBI Capital Markets Ltd (SBICAP). State Bank of India Services is offered through the following subsidiaries and Joint Ventures: • Banking Subsidiaries .Services of State Bank of India State Bank of India Services is most varied and innovative amongst all its contemporaries. • Foreign Subsidiaries . SBI Factors and Commercial Services Pvt Ltd (SBI FACTORS) and SBI Cards & Payments Services Pvt. State Bank of Indore (SBI)..State Bank of Bikaner and Jaipur (SBBJ).State bank of India International (Mauritius) Ltd. State Bank of India Services includes a host of products and services to suit all types of consumers. SBI General Insurance Company Limited. SBI DFHI Ltd (SBI DFHI).banking Subsidiaries . Ltd. State Bank of Mysore (SBM). (SBICPSL) • Joint ventures . State Bank of Saurashtra (SBS) and State Bank of Travancore (SBT). State Bank of India (California). SBI-SG Global Securities Private Limited. 11 . State Bank of India (Canada) and INMB Bank Ltd. SBI Funds Management Pvt Ltd (SBI FUNDS). Lagos.

Home Loans C. Personal Banking  Term Deposits    Loan to affluent pensioners Recurring Deposits Property Loan B. Loan against share/debentures D.Products and services offered by State Bank of India: A. SBI Car Loan 12 .

completeness. on the day of inauguration of SBI Central Office building 13 . it is the small man who holds the center of State Bank stage. to cover the entire country. Rent Plus F. Education Loans G. like concentric rings in water. NID. Ahmedabad “The circular form of the emblem suggests unity. Agriculture / Rural Symbol & Slogan Logo Designer: Shekhar Kamat. Logo release: 01 October 1971. the fullness of man’s being and his growing consciousness and continual expansion (of the bank).E. NRI Services H. the small circle in the center connotes that despite the bank’s size.

Cross sales of other products. government and trade finance customers. Setting up call centers and outbound sales force to secure new customers.Previous logo: The first Emblem of the State Bank of India adopted in 1955 is showing a banyan tree. SBI also introduced various other ways of reaching out to customers like extension of hours of work(SBI increased daily working hours by two hours and Sunday banking was introduced) and  Aggressive marketing through print and television media. lower costs and increased customer loyalty. They included      Segregating and targeting existing high value customers. Database marketing was expected to draw increased revenue from cross selling. The banyan tree has strong roots and its branches are capable of propagating and growing because of its aerial roots The Marketing Initiatives by State Bank of India SBI carried out various marketing initiatives to enhance its reach. 14 . Plans were also made to utilize database marketing to pursue large and medium sized Corporate.

It is also focusing at the top end of the market.The Bank is forging ahead with cutting edge technology and innovative new banking models.000 villages in the next two years. Conclusion 15 .Some of the strategies to cope with the current scenario  It is the part of SBI`s philosophy to open new branches . SBI is planning to hire 11. on whole sale banking capabilities to provide India’s growing mid / large Corporate with a complete array of products and services. looking at the vast untapped potential in the hinterland and proposes to cover 100. to expand its Rural Banking base.000 employees in the current fiscal. .

An impressive and probably the highest growth in the industry has been observed by the bank in housing loan (20 per cent).90 per cent Large corporates (23 per cent growth) have been one of the favourites of the SBI. On the income side the bank has registered a robust 29 per cent increase in income from other heads. like reverse mortgage.20 per cent to 49 per cent. Several initiatives.67 per cent to 9.4 per cent.India’s largest bank. which is above the average market growth of 21. But an impressive growth in the mid corporate (24 per cent increase) and small and medium enterprises (26 per cent increase) has given an indication that Bhat is equally interested in other segments also. SBI’s growth rate in advances stands at 23. have been taken up by the bank. In rural areas. has been declared by the bank. Income from mutual funds and insurance has seen an impressive 79 per cent increase. Even the yield on advances has increased from 8. the State Bank of India (SBI) has beaten all expectations.for high value loans and increased employee productivity. to Rs 58135 crore. Traditionally. Banks claims highest provider of corporate syndicated credit and capture India related business in high potential countries. Despite being a public sector undertaking. home loan disbursal within three days . 16 . small and medium enterprises (25 per cent). It is claiming to give the best of customer services like opening the account in 10 minutes. The bank’s cost to income ratio has declined by 520 basis points from 54. SBI has done extremely well in the international banking business. which leads to an impressive growth of operating profit by 31 per cent to Rs 13107 crore. the international business constitutes six to seven per cent of the total business. the bank has employed more than 3000 people to augment its sales. An impressive 50 per cent growth in international advances. auto loans (30per cent) and mid corporate (24 per cent). this figure has risen to 10 per cent this year.6 per cent. the SBI has outperformed several private banks in almost all the areas. However.

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improved the ranking from 495 to 380 this year. Ranking in “The Banker. Brand Finance – Global 500 Financial Brand recognition. to name a few. London. Only Indian bank among top 100 banks in world. Awarded “the Bank of the Year 2008. 2. Ranked # 1 in survey of top 5 companies in India in terms of financial reputation by Wall Street Journal. The only Indian bank to find a place in the Fortune Global 500 list. Ranked 8th in top 25 banks in Asia. 18 . 4. Others “Best Executive” Award to the Chairman by Asia Money. London’08. This is the only Indian bank that has won recognition and been listed among the top 100 world banks’ list based on the Fortune Global 500 rating. Reputation Institute. Ranked 59 in global 500 Financial Brand Recognition Ranking by Brand Finance.Asia. “Forbes” list of 2000 largest companies in the world. has ranked SBI 29th. 5. 3.Top 1000 World Banks. US. with its headquarters in Mumbai. 6. Slogans     With you all the way Pure banking nothing else The Banker to every Indian The Nation banks on us Awards and Recognitions 1. 7. improved to 57 from 70 in 2007. “Banker” list of top 1000 world banks. Improved the ranking from 290th position last year to 150th this year in Forbes 2000 list of largest companies in the world.India” by Banker Magazine.The State Bank of India or SBI bank is India’s largest banking institution. State Bank of India also improved its ranking in “Fortune” 500 Global List.

Maharashtra. (iii) The Bank was also presented an award for outstanding performance in the area of finance to SMEs by Dun & Bradstreet. 2008.“Most Admired Infrastructure Financier” Award by KPMG. State Bank of India wins 2 awards for Best Rural Banking Initiative and Best IT Architecture 19 . State Bank of India Voted THE BEST BANK in Cash Management Services in local currency by AsiaMoney. Uttarakhand. The Bank was conferred the following National awards by the Government of India (GOI). “Top Public Sector Bank under SME Financing” by Dun and Bradstreet The Bank was voted. Tamil Nadu and Uttar Pradesh. The Bank has won awards for topping SHG-Bank Credit linkage in Orissa. for the third year in a row. The Bank was awarded Reader’s Digest “Pegasus Corporate Social Responsibility Award 2007” in recognition of its contribution towards Rural Community Development. The Bank was also awarded the “Best Home Loan Provider” as well as “The Best Bank” – by Outlook Money Awards. (ii) Second under "National Awards for Excellence in MSE Lending". SBI has been rated as the Best Public Sector Bank for Rural Reach by Dun & Bradstreet. as the “Most Preferred Housing Loan” and “Most Preferred Bank” in the CNBC AWAAZ Consumer Awards in a survey conducted by CNBC TV18 in association with AG Nielsen & Company. Ministry of Micro Small and Medium Enterprises for the FY 2007. Jharkhand.08: (i) First under "National Awards for excellence in lending to Micro Enterprises".

• Help in National calamities The breakup of sectorial deployment of CSR spends during the year: 20 . Focus areas for CSR activities are: • Supporting Education • Supporting Healthcare • Supporting Girl Children & Child development.CORPORATE SOCIAL RESPONSIBILITY Corporate Social Responsibility has always been a part of the State Bank of India covering various social. • Assistance to poor & underprivileged. they believe that they owe a solemn duty to the less fortunate and underprivileged members of the society to make a sustainable social change in their development. • Entrepreneur development programme. • Environment protection. In SBI. environmental and welfare activities. • Clean Energy.

Bank provided 1. the Bank has lent its helping hand to the states who faced problems. and children belonging to economically weaker sections etc. Assistance for Natural Calamities: SBI has always been at forefront to help the States affected by natural calamities. SBI also assisted them with computers.Supporting Education: • To support school education and to bring happiness to millions of school children specially the underprivileged children. SBI is extending funding support. furniture and other accessories. with donations of Rs 5. Preference has been given to schools for physically/mentally challenged children.Our branches have adopted girl children from underprivileged class and assist them financially for their education.000 schools across India. • During the year.000 electric fans to 12. • To transform and upgrade the efficacy of education in schools run by Municipal Corporation of Greater Mumbai. During the current fiscal. 21 . the Bank also provided large number of buses/vans to needy schools. Bank has adopted 17627 girl children.50 Crores to the Chief Minister's Relief Fund of the respective states to provide help to the people affected by natural calamities.20. Responsibility to the Nation: • Girl Child adoption.

80 on BSE and 2486. Stock Market: Share price of State bank of India is been traded at a price of 2484.202 billion (2012) Total assets: US$ 359.237 billion (2012) In Forbes magazine it ranks as 267th in term of sales. 256th in term of profits. 69th in terms of assets and 298th in terms of market value out of 2000 top most companies around the world.70 on NSE as on 4th January 2013.Financial Status as of July 2012 Revenue: US$ 36. 22 .950 billion (2012) Profit: US$ 3.