Of the Project Report
“Terms and Policies of State Bank of India”

To be submitted in partial fulfillment for the requirement
of the degree of B.Com.(Voc.)
Dr. B.R. Ambedkar University, Agra


Under the Guidance of : Submitted by:
Dr. Sanjeev Sharma Divya Jain
Associate Professor Roll. No.

St. John’s College, Agra
“Terms and Policies of State Bank of India”


The origins of State Bank of India date back to 1806 when the Bank of Calcutta
(later called the Bank of Bengal) was established. In 1921, the Bank of Bengal and two other
Presidency banks (Bank of Madras and Bank of Bombay) were amalgamated to form the
Imperial Bank of India. In 1955, the controlling interest in the Imperial Bank of India was
acquired by the Reserve Bank of India and the State Bank of India (SBI) came into existence by
an act of Parliament as successor to the Imperial Bank of India. Today, State Bank of India (SBI)
has spread its arms around the world and has a network of branches spanning all time zones.
SBI's International Banking Group delivers the full range of cross-border finance solutions
through its four wings - the Domestic division, the Foreign Offices division, the Foreign
Department and the International Services division.

The SBI was formed in 1955, through nationalization of imperial banks in India. The
imperial bank of India has bee formed by the amalgamation of three existing presidency banks.
With the nationalization of imperial bank in India, all its assets and liabilities were transferred to
the state bank of India.

It was converted into SBI on 1/07/1955 on the recommendations of the committee for
All India Rural Credit Survey, headed by Shri. A.D. Gorwala (the committee recommended the
establishment of one strong, integrated, state sponsored, state partnered commercial banking
institution). At that time SBI had three circles, Bombay, Calcutta and Madras besides a central
office at Bombay, SBI was the first bank to set up as the public sector.
My SBI: First in customer satisfaction.
We will be prompt and proactive with our customers, we will speak the language of young
India, we will create products and services that help our customers achieve their goals, we will
go beyond the call of duty to make our customers feel valued, we will be in service even in the
remotest part of our country, we will offer excellence in services to those abroad as much as we
do those in India, we will imbide state pf art technology to drive excellence.
We will always be honest, transparent and ethical. We will respect our customers and
fellow associates we will be knowledge driven. We will learn and we will share our learning. We
will never take the easy way out. We will do everything we can to contribute to the community
we work in. we will nurture pride in India.
The organization of the SBI can be discussed under the following heads:
1) Capital:
The SBI has an authorized capital of Rs.20 crores which has been divided into 20 lakhs
shares of Rs. 100 each. The shares are held by the reserve bank, insurance companies and the
general public.
2) Management:
The management of SBI is under the control of a central board of directors consisting
of 20 members, the break up of a central board is given below:
a) A chairman and vice president are to be appointed by the central government in
consultation with reserve bank.
b) Two managing directors are to be appointed by the central board with the approval of
central government.
c) Six directors are to be elected by the private shareholders.
d) Eight directors are to be appointed by the central government I consultation with the
reserve bank to represent territorial and economic interests. No less than two of them should
have special knowledge in the working of co-operative institutions and of the rural economy.
e) One of the directors to be appointed by the central government.
f) One director is to be appointed by the reserve bank.
3) Subsidiary banks:
The state bank of India has the following six Associate Banks (ABs) with controlling
interest ranging from 75% to 100%.
1. State Bank of Bikaner and Jaipur (SBBJ)
2. State Bank of Hyderabad (SBH)
3. State Bank of Indore (SBIr)
4. State Bank of Mysore (SBM)
5. State Bank of Patiala (SBP)
6. State Bank of Travancore (SBT)

The main objectives of state bank of India are given below.
The state bank of India has been established to operate on the normal commercial
principle. With the only difference that, unlike other commercial banks in country, it takes into
consideration and responds progressively to the small scale industries particularly in the rural
areas of the country.
The main objectives of the State Bank of India are:
1) To act in accordance wit the broad economic principle of the government.
2) To encourage and mobilize the savings by operating branches in the rural and semi-
urban and to promote rural credit.
3) To extend financial help for the establishment of licensed warehouse and co-operative
marketing societies.
4) To provide financial help to small scale and cottage industries.
5) To provide remittance facilities to banking institutions.

Research methodology in which the data are collected for the research.
Research Methodology is the attempt to validate the rationale behind the
selected research design and provide justification of why it is
appropriate in solving the selected research problem. It is the process by
which we evaluate tools that produce knowledge.
Research Design
The Research Report is based on exploratory study based on Primary &
Secondary Data. Exploratory research is concerned with identification of
the real nature of research problem & perhaps of formulating relevant
hypothesis for various tests. The major benefit is that it is less expensive
& less time consuming. For assessing the tool used to deliver included
Personal interview of respondent.
Sources of Collecting Data
Data collection methods are generally of two types:
 Primary Data
 Secondary Data
Primary data are those which are collected for the first time and thus
happen to be original in character. The primary data is collected in the
process of questionnaire and interview of the outlets.
Secondary data are those which have already been collected by
someone else and which have been already been passed through the
statistical process.
Primary data:
1. Questionnaire method
Secondary data:
1. Book
2. News papers
3. Internet
4. Magazines

It is a way to systematically solve the research problem ,
when we talk of research methodology we not only talk about
method but also consider the logic behind the method , we use in
context of our research , while keeping all the objective of the
project in mind following method of methodology are adopted.
The methodology the project data be summarized as follows:
Methodology Adopted
Methods used
Through Market Survey, Questionnaire. While preparing the
Questionnaire certain dimensions are to be considered. These
dimensions are come under following heads:
 Management
Sources of data
For the purpose of this Research report data has been collected from the
following sources:
Primary sources
Sample Size : 50
Secondary Sources
 Organizations Policy Manual
 Other relevant documents
 Company website
Tools used for Analysis
 Bar Graphs
 Pie charts
Chapter Plan

 Introduction
 Review of literature
 Research Objectives
 Research Methodology
 Data Analysis & Interpretation
 Findings & Suggestions
 Conclusion
 Bibliography
 Appendices or Annexure