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SBI (state bank of India)

State Bank of India (SBI) is the largest nationalized commercial bank in India in terms of
assets, number of branches, deposits, profits and workforce. With the liberalization of the
Indian banking industry in the mid-1990s, SBI faced stiff competition from the private
sector and foreign banks which resulted in significant loss of its market share. The case
describes the efforts of SBI to regain its lost market share by undergoing a major
restructuring exercise which involved redesigning its branch network, providing alternate
banking channels, emphasis on lean structure and technology up gradation. The case also
discusses how SBI is building its image as a customer friendly bank by launching innovative
products & services and promoting its brand.

Founded: Kolkata, 1806 (as Bank of Calcutta)

Headquarters: Corporate Centre, Madam Cama Road, Mumbai 400 021 India

Key people: Om Prakash Bhatt, Chairman

Industry: Banking Insurance Capital Markets and allied industries

Products: Loans Credit Cards, Savings Investment vehicles SBI Life (Insurance)

Revenue: ▲ US$ 24.577 billion (2008) Net income ▲ US$ 2.25 billion (2008)

Total assets: ▲ US$ 257.183 billion (as of 31st March 2008)

Employees: 205,896

The roots of the State Bank of India rest 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 and two other Presidency banks, namely, 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 in 1861
with the Paper Currency Act, a right they retained until the formation of the Reserve Bank
of India. The Presidency banks amalgamated on 27 January 1921, and the reorganized
banking entity took as its name Imperial Bank of India. Pursuant to the provisions of the
State Bank of India Act (1955), the Reserve Bank of India, which is India's central bank,
acquired a controlling interest in the Imperial Bank of India. On 30 April 1955 the Imperial
Bank of India became the State Bank of India. The Govt. 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, enabling the State Bank of India to take over eight
former State-associated banks as its subsidiaries. On Sept 13, 2008, State Bank of
Saurashtra, one of its Associate Banks, merged with State Bank of India.