AN ANALYSIS ON THE STATE BANK OF INDIA

DONE BY BHAVDEEP SINGH 11BSUHH010015

INTERIM REPORT

CONTENTS

INTRODUCTION COMPANY PROFILE WHY DID I CHOOSE THIS TOPIC OBJECTIVES METHODOLOGY MISSION AND VISION STATEMENT SWOT ANALYSIS COMPETITIORS

INTRODUCTION
BANKING INDUSTRY

Banking in India in the modern sense originated in the last decades of the 18th century. The first banks were Bank of Hindustan (1770-1829) and The General Bank of India, established 1786 and since defunct. The largest bank, and the oldest still in existence, is the State Bank of India, which originated in the Bank of Calcutta in June 1806, which almost immediately became the Bank of Bengal. This was one of the three presidency banks, the other two being the Bank of Bombay and the Bank of Madras, all three of which were established under charters from the British East India Company. The three banks merged in 1921 to form the Imperial Bank of India, which, upon India's independence, became the State Bank of India in 1955. For many years the presidency banks acted as quasicentral banks, as did their successors, until the Reserve Bank of India was established in 1935. In 1969 the Indian government nationalised all the major banks that it did not already own and these have remained under government ownership. They are run under a structure know as 'profit-making public sector undertaking' (PSU) and are allowed to compete and operate as commercial banks. The Indian banking sector is made up of four types of banks, as well as the PSUs and the state banks, they have been joined since 1990s by new private commercial banks and a number of foreign banks. Banking in India was generally fairly mature in terms of supply, product range and reach-even though reach in rural India and to the poor still remains a challenge. The government has developed initiatives to address this through the State bank of India expanding its branch network and through the National Bank for Agriculture and Rural Development with things like microfinance.

COMPANY PROFILE

State

Bank

of

India (SBI)

is

multinational banking and financial

services company based in India. It is a government-owned corporation with its headquarters in Mumbai, Maharashtra. As of December 2012, it had assets of US$501 billion and 15,003 branches, including 157 foreign offices, making it the largest banking and financial services company in India by assets. 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 banksBank of Calcutta and Bank of Bombayto form the Imperial Bank of India, which in turn became the State Bank of India. Government of India nationalised the Imperial Bank of India in 1955, with Reserve Bank of India 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. SBI was ranked 285th in the Fortune Global 500 rankings of the world's biggest corporations for the year 2012. 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 the country. SBI is a regional banking behemoth and has 20% market share in deposits and loans among Indian commercial banks. The State Bank of India was named the 29th most reputed company in the world according to Forbes 2009 rankings and was the only bank featured in the "top 10 brands of India" list in an annual survey conducted by Brand Finance and The Economic Times in 2010.

HISTORY
The roots of the State Bank of India lie in the first decade of 19th century, when the Bank of Calcutta, later renamed the Bank of Bengal, was established on 2 June 1806. The Bank of Bengal was one of three Presidency banks, the other two being the Bank of Bombay (incorporated on 15 April 1840) and the Bank of Madras (incorporated on 1 July 1843). All three Presidency banks were incorporated as joint stock companies and were the result of the royal charters. These three banks received the exclusive right to issue paper currency till 1861 when with the Paper Currency Act; the right was taken over by the Government of India. The Presidency banks amalgamated on 27 January 1921, and the re-organised banking entity took as its name Imperial Bank of India. The Imperial Bank of India remained a joint stock company but without Government participation. Pursuant to the provisions of the State Bank of India Act of 1955, the Reserve Bank of India, which is India's central bank, acquired a controlling interest in the Imperial Bank of India. On 1 July 1955, the Imperial Bank of India became the State Bank of India. The government of India recently acquired the Reserve Bank of India's stake in SBI so as to remove any conflict of interest because the RBI is the country's banking regulatory authority. In 1959, the government passed the State Bank of India (Subsidiary Banks) Act, which made eight state banks associates of SBI. A process of consolidation began on 13 September 2008, when the State Bank of Saurashtra merged with SBI. SBI has acquired local banks in rescues. The first was the Bank of Behar (est. 1911), which SBI acquired in 1969, together with its 28 branches. The next year SBI acquired National Bank of Lahore (est. 1942), which had 24 branches. Five years later, in 1975, SBI acquired Krishnaram Baldeo Bank, which had been established in 1916 in Gwalior State, under the patronage of Maharaja Madho Rao Scindia. The bank had been the Dukan Pichadi, a small moneylender, owned by the Maharaja. The new banks first manager was Jall N. Broacha, a Parsi. In 1985, SBI acquired the

Bank of Cochin in Kerala, which had 120 branches. SBI was the acquirer as its affiliate, the State Bank of Travancore, already had an extensive network in Kerala. The State Bank of India and all its associate banks are identified by the same blue keyhole logo. The State Bank of India word mark usually has one standard typeface, but also utilises other typefaces.

ASSOCIATE BANK
SBI has five associate banks; 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

NON BANKING SERVICES 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

STRUCTURE

As on 14 January 2013, there are fifteen members in the SBI board of directors:

Pratip Chaudhuri (Chairman) Hemant G. Contractor (Managing Director) Arundhati Bhattacharya (Managing Director) A. Krishna Kumar (Managing Director) S. Visvanathan (Managing Director) S. Venkatachalam (Director) D. Sundaram (Director) * Thomas Mathew (Director) S.K. Mukherjee (Officer Employee Director) Rajiv Kumar (Director) Jyoti Bhushan Mohapatra (Workmen Employee Director) Deepak Amin (Director) Harichandra Bahadur Singh (Director)

WHY STATE BANK OF INDIA???

SBI is one of the oldest banks and the strongest public sector bank in banking industry in INDIA. It has the largest subsidiaries with largest networks in INDIA. It was formed after the independence by combining the 3 largest banks during the colonial period.

OBJECTIVES
To know about the SBI products and also about its subsidiaries To analyze the bank based on the fundamental analysis To analyze the bank based on the technical analysis To show the investors why to invest in the share of the SBI.

METHODOLOGY
The methodology used will be the total secondary basis. The desired information will be taken from the internet or from the annual report of the company and also some content for the net.

VISION AND MISSION STATEMENT

MISSION STATEMENT To carry the torch of an exemplary SBI Officers Union Movement; Ever alive to Uniting, Protecting, Securing and Satisfying the committed and enthused members; Ever facilitating the growth and development of quality Bank Professionals; Ever offering trusteeship role in meeting the challenges of SBI in the face of changing Economic Scenario; Ever trusting in continuous search, improvement and education with a concern for all that is noble, just and praiseworthy in our movement, Bank and Nation.

VISION STATEMENT A Pioneering, Apolitical and Responsive officers Union movement with Enlightened values, Committed Cadre, Inspiringly led, Ever at the focused services of the members, the Bank and the community at large.

SWOT ANALYSIS
STRENGTH 1. The biggest bank in the country

2. Has a separate act for itself. Thus, a special privilege. 3. Biggest branch network in the country

4. First public sector to move to CBS WEAKNESS 1. Huge amount of staff 2. Expected to experience high level of attrition due to retirement of its top management 3. Still carries the image of the old Govt. sector bank

OPPURTUNITIES

1. Pool in talent to replace the going top management to serve the next generation 2. Make better use of its CRM 3. Expansion into rural areas

THREATS

1. Consolidation among private banks 2. New bank licenses by RBI 3. Foreign banks that have sophisticated products

COMPETITORS

Bank of Baroda PNB Canara Bank Bank of India IDBI Bank Union Bank Central Bank Corporation Ban Syndicate Bank UCO Bank Oriental Bank IOB Allahabad Bank Andhra Bank Indian Bank Bank of Maharashtra Vijaya Bank Dena Bank United Bank Punjab & Sind

Things to be done Technical analysis Fundamental analysis