TERM PAPER

OF

FINANCIAL MANAGEMENT

TOPIC-STATE BANK OF INDIA

SUBMITTED TO: SUBMITTED BY:

ANUSHITTAL MAM KARUNA LUTHRA

R.NO.RR1903B50
REG.NO.10907272

TABLE OF CONTENTS
SERIAL DESCRIPTION PAGE NO
NO
1 Acknowledgement
2 State Bank Of India-Introduction
3 Company profile
4 History of the Company
5 Management of State Bank Of India
6 Company background
7 Dividends declared
8 Position of the Company Relative to
Industry
9 Change in the Share Price of the Company
10 Balance sheet of the company
11 Profit and loss account of the company
12 Capital structure
13 Financial performance-profits and dividends
14 Hierarchical structure of the company
15 Financial statements
16 Liquidity position of the company
17 Liquidity facilities
18 Credit Rating of the Company
19 IPO Issues Made by the Company
20 Articles of the company
21 Conclusion
 ACKNOWLEDGEMENT

First of all thanks to almighty God who gave me courage and confidence hence I
completed my term paper. I would like to express my gratitude for the helpful
comments and suggestions by my teacher.

Most importantly I would like to thank my course in charge Miss. Anushittal Sinha
for her supervision and support in accomplishment of my study about the topic. Her
critical commentary on work has played a major role in both the content and
presentation of my discussion and arguments about the term paper and I would thank
my parents who supported me all along the study and friends for their help in making
of this term paper.

I have extended my appreciation to the several sources which provided various kinds of
knowledge base and support to me. I would also like to thank my classmates who
helped me in times in completing the study about the given topic.

KARUNA LUTHRA

STATE BANK OF INDIA

INTRODUCTION

• The State Bank of India is the largest commercial bank in India in terms of profits,
assets, deposits, branches and employees.

• SBI plans to add another 1,000 branches this year with a view to increase its presence
in new centres, which will take the total number of branches to
13,000.

• State Bank of India and Macquarie Group launched the Macquarie-SBI Infrastructure
Fund (MSIF),which will invest in infrastructure projects in India.

• State Bank of India has raised USD 100 million via senior debt fixed rate bonds.

• SBI, IAG insurance JV is expected to commence commercial operations in the first half
of the calendar year 2010 subject to final approvals from
IRDA.

• State Bank of India, which enjoys the largest overseas presence among local lenders,
will be opening 23 more branches abroad by March 2010.

• Net Income and PAT of the bank are expected to grow at a CAGR of 17% & 15% over
FY08 to FY11E.

COMPANY PROFILE

State Bank of India is the nation's largest commercial bank. SBI along with its
associate banks operate more than 14,000 branches within India. State Bank of India
has more than 50 offices in nearly 35 other countries, including multiple locations in the
US, Canada, and Nigeria. The bank has other units devoted to capital markets, fund
management, factoring and commercial services and brokerage services.

HISTORY

STATE BANK OF INDIA

1955 -

On 1st July State Bank of India was constituted under the State Bank of India Act 1955,
for the purpose of taking over the undertaking and business of the Imperial Bank of
India. The Imperial Bank of India was founded in 1921 under the Imperial Bank of India
Act 1920. The Bank transacts general banking business of every description including,
foreign exchange, merchant banking and mutual funds.

1959 -

On September State Bank of India (Subsidiary Bank) Act was passed. On October State
Bank of Hyderabad become the first subsidiary of SBI.

2000 -

The Bank has embarked upon the expansion of its ATM network in the twin cities of
Hyderabad and Secunderfabad .The Bank has become the first government owned
financial institution to join the rank of companies declaring interim dividend.

The Bank has proposed to come out with an issue under private placement of
unsecured, non-convertible, subordinated bonds in the nature of promissory notes of
Rs 1 lakh each aggregating Rs 600 crores with an option to retain oversubscription of up
to Rs 40 crores.
The Bank launched the Metal (Gold) Loan Scheme in Coimbatore. This
is the third scheme to be introduced by SBI.

2002

- In order to reduce risk and develop a transparent and active debt market in general
and government securities market in particular, the Clearing Corporation of India Ltd.
has been set up in Mumbai with the Bank as the chief promoter.
2009

- State Bank of India yesterday slashed its benchmark lending rate by half a percentage point to
11.75 per cent. The Benchmark Prime Lending Rate (BPLR) was revised down by 50 basis points
with effect from June 29, SBI informed the Bombay Stock Exchange. This move would benefit
home, car and corporate loan customers.

- State Bank of India on June 30 launched two new home loan products called as SBI Easy Home
Loan and SBI Advantage Home Loan, with zero processing fees for both waived off till
September 30. While SBI Easy Home is for loans amount up to Rs 30-lakh while the SBI
Advantage Home is for loans above Rs 30-lakh, a press release issued here said.

- State Bank of India, entered into an agreement with the government of Gujarat to create a
fund of Rs 5,000 crore for investing in equity of infrastructure projects.

2010

- State Bank of India, with a debit card base of over 70 million,comprising SBI Cash Plus, SBI Gold
Debit Card and SBI Yuva Card, has added chip and PIN-based Platinum Debit Card to its bouquet
on March 26.

Management – SBI

Name Designation
S K Bhattacharyya Managing Director
Ashok Jhunjhunwala Director
S Venkatachalam Director
Deva Nand Balodhi Director
Shyamala Gopinath Director
Name Designation
R Sridharan Managing Director
Dileep C Choksi Director
D Sundaram Director
Vasantha Bharucha Director

Company Background - State Bank of India

Industry Name Finance - Banks - Public Sector

House Name SBI Group
Collaborative Country Name N.A.
Joint Sector Name N.A.
Year Of Incorporation 1955
Year Of Commercial Production N.A.

Regd. Office Address. State Bank Bhavan, Central Office

District Mumbai
State Maharashtra
Pin Code 400021
Tel. No. 022-22830535,022-22883888
Fax No. 022-22855348
Email : investor.complaints@sbi.co.in Internet : http://www.sbi.co.in
Auditors Company Status
Dagliya & Co.  N.A.
Registrars
Name  Datamatrics Financial Software & Services Ltd.
Address  Plot No. A 16 & 17, Part B Cross Lane, MIDC, Marol, Mumbai -
400093, Maharashtra.
Tel. No. : Fax No. :
Email : N.A. Internet : N.A.

Dividends Declared

Announcement Effective Dividend Type Dividend (%) Remarks

Date Date
25-01-10 05-02-10 Interim 100.00 -
11-05-09 10-06-09 Final 290.00 -
02-05-08 29-05-08 Final 215.00 -
09-05-07 13-06-07 Final 140.00 -
10-05-06 19-06-06 Final 140.00 -
20-05-05 17-06-05 Final 125.00 -

Position of company in relation to industry

Last Price Market Cap. Net Interest Net Profit Total Assets
(Rs. cr.) Income
SBI 2,297.15 145,842.07 63,788.43 9,121.24 964,432.08
PNB 1,029.85 32,471.43 19,326.16 3,090.88 246,918.62
Bank of Baroda 708.25 25,888.66 16,698.34 3,058.33 227,406.73
Bank of India 381.95 20,087.13 16,347.36 3,007.35 225,501.75
Canara Bank 428.35 17,562.35 18,751.96 3,021.43 219,645.80
Union Bank 303.80 15,345.48 11,889.38 1,726.55 160,975.51
Indian Bank 222.00 9,540.89 7,857.06 1,554.99 84,121.74
IDBI Bank 125.40 9,089.77 11,631.62 858.53 172,402.33
Oriental Bank 347.40 8,703.75 8,856.47 905.42 112,582.58
Corporation Ban 541.55 7,767.99 7,294.60 1,170.25 86,905.80

Current share price of state bank of india

Price Information
Open 2305
High 2315.9
Low 2273.1
Previous Close 2297.15
Average Price 2296.43
Total Traded Quantity 1339762
Turnover in Rs.Lakhs 30766.7
52 week high price 2500
52 week low price 1219.45
Face Value 10

Value at Risk (VaR)

Security VAR 5.62
Index VAR -
VAR Margin 7.5
Extreme Loss Rate 5
Adhoc Margin -
Applicable Margin Rate 12.5
Security-wise Delivery Position3MAY2010
Quantity Traded 1316089
Deliverable Quantity
516764
(Gross across client level)
% Deliverable Qty to Traded Quantity 39.27

Balance sheet of state bank of india

Mar '05 Mar '06 Mar '07 Mar '08 Mar '09

Capital and Liabilities:

Total Share Capital 526.30 526.30 526.30 631.47 634.88
Equity Share Capital 526.30 526.30 526.30 631.47 634.88
Share Application Money 0.00 0.00 0.00 0.00 0.00
Preference Share Capital 0.00 0.00 0.00 0.00 0.00
Reserves 23,545.84 27,117.79 30,772.26 48,401.19 57,312.82
Revaluation Reserves 0.00 0.00 0.00 0.00 0.00
Net Worth 24,072.14 27,644.09 31,298.56 49,032.66 57,947.70
Deposits 367,047.53 380,046.06 435,521.09 537,403.94 742,073.13
Borrowings 19,184.31 30,641.24 39,703.34 51,727.41 53,713.68
Total Debt 386,231.84 410,687.30 475,224.43 589,131.35 795,786.81
Other Liabilities & Provisions 49,578.89 55,538.17 60,042.26 83,362.30 110,697.57
Total Liabilities 459,882.87 493,869.56 566,565.25 721,526.31 964,432.08
Mar '05 Mar '06 Mar '07 Mar '08 Mar '09
Assets
Cash & Balances with RBI 16,810.33 21,652.70 29,076.43 51,534.62 55,546.17
Balance with Banks, Money at Call 22,511.77 22,907.30 22,892.27 15,931.72 48,857.63
Advances 202,374.45 261,641.53 337,336.49 416,768.20 542,503.20
Investments 197,097.91 162,534.24 149,148.88 189,501.27 275,953.96
Gross Block 6,691.09 7,424.84 8,061.92 8,988.35 10,403.06
Accumulated Depreciation 4,114.67 4,751.73 5,385.01 5,849.13 6,828.65
Net Block 2,576.42 2,673.11 2,676.91 3,139.22 3,574.41
Capital Work In Progress 121.27 79.82 141.95 234.26 263.44
Other Assets 18,390.71 22,380.84 25,292.31 44,417.03 37,733.27
Total Assets 459,882.86 493,869.54 566,565.24 721,526.32 964,432.08
Contingent Liabilities 131,325.40 191,819.34 259,536.57 736,087.59 614,603.47
Bills for collection 44,794.10 57,618.44 70,418.15 93,652.89 152,964.06

ANALYSIS OF BALANCE SHEET

According to the balance sheet, assets of the company are increasing year by
year like in 2005,company total assets are 459882.86 but after next four years company
increase their assets 964432.08.So it means company’s growth is increasing in the
market as compare to their competitors. When the company increase their assets then
it also have impact on the liabilities.As it is showing that company is growing in the
market so its goodwill is also increasing.

Profit and loss account of State Bank of India

Mar '05 Mar '06 Mar '07 Mar '08 Mar '09

Income
Interest Earned 32,428.00 35,794.93 39,491.03 48,950.31 63,788.43
Other Income 7,119.90 7,388.69 7,446.76 9,398.43 12,691.35
Total Income 39,547.90 43,183.62 46,937.79 58,348.74 76,479.78
Expenditure
Interest expended 18,483.38 20,159.29 23,436.82 31,929.08 42,915.29
Employee Cost 6,907.35 8,123.04 7,932.58 7,785.87 9,747.31
Selling and Admin Expenses 2,634.64 1,853.32 3,251.14 4,165.94 5,122.06
Depreciation 752.21 729.13 602.39 679.98 763.14
Miscellaneous Expens es 6,465.82 7,912.15 7,173.55 7,058.75 8,810.75
Preoperative Exp Capitalised 0.00 0.00 0.00 0.00 0.00
Operating Expenses 11,278.18 11,872.89 13,251.78 14,609.55 18,123.66
Provisions & Contingencies 5,481.84 6,744.75 5,707.88 5,080.99 6,319.60
Total Expenses 35,243.40 38,776.93 42,396.48 51,619.62 67,358.55
Mar '05 Mar '06 Mar '07 Mar '08 Mar '09
Net Profit for the Year 4,304.52 4,406.67 4,541.31 6,729.12 9,121.23
Extraordionary Items 0.00 0.00 0.00 0.00 0.00
Profit brought forward 0.34 0.34 0.34 0.34 0.34
Total 4,304.86 4,407.01 4,541.65 6,729.46 9,121.57
Preference Dividend 0.00 0.00 0.00 0.00 0.00
Equity Dividend 657.87 736.82 736.82 1,357.66 1,841.15
Corporate Dividend Tax 93.75 103.34 125.22 165.87 248.03
Per share data (annualised)
Earning Per Share (Rs) 81.79 83.73 86.29 106.56 143.67
Equity Dividend (%) 125.00 140.00 140.00 215.00 290.00
Book Value (Rs) 457.39 525.25 594.69 776.48 912.73
Appropriations
Transfer to Statutory Reserves 3,552.89 3,566.51 3,682.15 5,205.69 7,032.04
Transfer to Other Reserves 0.01 0.00 -2.88 -0.10 0.01
Proposed Dividend/Transfer to Govt 751.62 840.16 862.04 1,523.53 2,089.18
Balance c/f to Balance Sheet 0.34 0.34 0.34 0.34 0.34
Total 4,304.86 4,407.01 4,541.65 6,729.46 9,121.57

ANALYSIS OF PROFIT AND LOSS ACCOUNT

By analyzing the profit and loss account we see that the total income of SBI is higher
than the total expenses which shows company has more focus on their interest expended, it
means that company expand their interest for long period. So company is earning high net
profits after 2007.Earning per share of the company is also increasing year by year because
company has strong and good image in the market.
Capital Structure

Period Instrument Authorized Issued -PAIDUP-

Capital Capital
From To (Rs. cr) (Rs. cr) Shares (nos) Face Capital
Value
2008 2009 Equity Share 214.75 214.75 634880222 10 214.75
2007 2008 Equity Share 214.75 214.75 631470376 10 214.75
2006 2007 Equity Share 214.75 214.75 526298878 10 214.75
2005 2006 Equity Share 214.75 214.75 526298878 10 214.75
2004 2005 Equity Share 214.75 214.75 526298878 10 214.75
2003 2004 Equity Share 214.75 214.75 526298878 10 214.75
2002 2003 Equity Share 214.75 214.75 526298878 10 214.75
2001 2002 Equity Share 214.75 214.75 526298878 10 214.75
2000 2001 Equity Share 214.75 214.75 526298878 10 214.75
1999 2000 Equity Share 214.75 214.75 526298878 10 214.75
1996 2000 Equity Share 214.75 214.75 526298878 10 214.75
1995 1996 Equity Share 214.75 214.75 474009872 10 214.75
1994 1995 Equity Share 214.75 214.75 474009189 10 214.75
1993 1994 Equity Share 214.75 214.75 473828726 10 214.75
1991 1993 Equity Share 214.75 200 20000000 100 200

Financial Performance
Profit
The Operating Profit of the Bank for 2008-09 stood at Rs. 17,915.23
crores as compared to Rs. 13,107.55 crores in 2007-08 registering a
growth of 36.68%. The Bank has posted a Net Profit of Rs. 9,121.23
crores for 2008-09 as compared to Rs. 6,729.12 crores in 2007-08
registering a growth of 35.55%.
While Net Interest Income recorded a growth of 22.63% and Other Income increased
by 45.96%, Operating Expenses increased by 24.11% attributable to higher staff cost
and other overhead expenses.

Dividend

The Bank has increased dividend to Rs. 29.00 per share (290%) from Rs.
21.50 per share (215%) in the last year.

HIERARCHICAL STRUCTURE

Manager

Chief marketing officer

Agency head

Regional head

Area marketing manager

Branch manager

Agency manager
 Unit manager

Sales office

This is the hierarchial structure of the company which shows who has to report to
whom. In a hierarchical organisation employees are ranked at various levels within the
organisation, each level is one above the other. At each stage in the chain, one person
has a number of workers directly under them, within their span of control. A
tall hierarchical organisation has many levels and a flat hierarchical organisation will
only have a few.

The chain of command (ie the way authority is organized) is a typical pyramid shape.

FINANCIAL STATEMENT

Mar
Mar '06 Mar '07 Mar '08 Mar '09
'05

Investment Valuation Ratios

Face Value 10.00 10.00 10.00 10.00 10.00
Dividend Per Share 12.50 14.00 14.00 21.50 29.00
Operating Profit Per Share (Rs) 148.50 124.77 147.72 173.61 230.04
Net Operating Profit Per Share (Rs) 692.96 719.54 833.38 899.83 1,179.45
Free Reserves Per Share (Rs) 68.67 178.33 184.43 356.61 373.99
Bonus in Equity Capital -- -- -- -- --
Profitability Ratios
Interest Spread 4.28 4.31 4.20 4.32 4.34
Adjusted Cash Margin(%) 14.54 13.06 11.43 12.81 13.04
Net Profit Margin 11.56 11.21 10.12 11.65 12.03
Return on Long Term Fund(%) 105.35 97.89 99.20 86.83 100.35
Return on Net Worth(%) 19.43 17.04 15.41 13.72 15.74
Adjusted Return on Net Worth(%) 19.35 15.93 14.47 13.70 15.74
Return on Assets Excluding
0.94 0.89 0.80 0.93 0.95
Revaluations
Return on Assets Including
0.94 0.89 0.80 0.93 0.95
Revaluations
Management Efficiency Ratios
Interest Income / Total Funds 8.41 7.94 8.27 8.82 8.88
Net Interest Income / Total Funds 4.15 3.71 3.85 3.87 3.79
Non Interest Income / Total Funds 0.17 0.30 0.19 0.14 0.11
Interest Expended / Total Funds 4.26 4.23 4.42 4.96 5.09
Operating Expense / Total Funds 2.34 2.34 2.39 2.16 2.06
Profit Before Provisions / Total
1.80 1.52 1.54 1.74 1.75
Funds
Net Profit / Total Funds 0.99 0.92 0.86 1.04 1.08
Loans Turnover 0.20 0.16 0.15 0.15 0.16
Total Income / Capital Employed(%) 8.58 8.24 8.46 8.96 8.99
Interest Expended / Capital
4.26 4.23 4.42 4.96 5.09
Employed(%)
Total Assets Turnover Ratios 0.08 0.08 0.08 0.09 0.09
Asset Turnover Ratio 5.45 5.10 5.44 6.32 7.20
Profit And Loss Account Ratios
Interest Expended / Interest Earned 57.00 56.32 59.35 65.23 67.28
Other Income / Total Income 1.99 3.60 2.25 1.56 1.18
Operating Expense / Total Income 27.34 28.37 28.19 24.13 22.91
Selling Distribution Cost Composition 0.18 0.28 0.20 0.30 0.33
Balance Sheet Ratios
Capital Adequacy Ratio 12.45 11.88 12.34 13.47 14.25
Advances / Loans Funds(%) 56.35 65.66 76.16 78.31 78.34
Debt Coverage Ratios
sCredit Deposit Ratio 52.55 62.11 73.44 77.51 74.97
Investment Deposit Ratio 55.83 48.14 38.22 34.81 36.38
Cash Deposit Ratio 5.23 5.15 6.22 8.29 8.37
Total Debt to Owners Fund 1s5.25 13.75 13.92 10.96 12.81
Financial Charges Coverage Ratio 1.46 1.40 1.37 1.37 1.36
Financial Charges Coverage Ratio
1.27 1.25 1.22 1.23 1.23
Post Tax
Leverage Ratios
Current Ratio 0.04 0.05 0.05 0.07 0.04
Quick Ratio 4.79 5.50 6.52 6.15 5.74
Cash Flow Indicator Ratios
Dividend Payout Ratio Net Profit 17.46 19.06 18.98 22.64 22.90
Dividend Payout Ratio Cash Profit 14.86 16.35 16.75 20.56 21.13
Earning Retention Ratio 83.88 80.93 80.97 77.33 77.11
Cash Earning Retention Ratio 86.12 83.64 83.21 79.41 78.88
AdjustedCash Flow Times 67.82 74.03 84.87 72.64 75.05

Mar
Mar '06 Mar '07 Mar '08 Mar '09
'05

Earnings Per Share 81.79 83.73 86.29 106.56 143.67

Book Value 457.39 525.25 594.69 776.48 912.73

ANALYSIS OF FINANCIAL STATEMENT

The liquid position of the state bank of India shows that the current asstes of it is
decreasing from the 2009 to 2007 which means that the company positon is
decreasing as the current assets are decreasing the company should improve there
current assets over current liabilities as the current assets are based upon the short
term obligation.
Liquid position of the company shows that the liquid assets over current liabilities are
decreasing it means that the liquidity is high and the company should work effectively
in order to improve the positon.

Liquidity position
The cumulative reduction in the CRR by 400 basis points since mid-September
2008 releasedadditional Rs.1,60,000 crore of primary liquidity. Unwinding of MSS has
released primaryliquidity of a little over Rs.63,000 crore. Further, potential liquidity has
been made availablethrough various refinance facilities for banks and financial
institutions to the tune of Rs.80,000crore. The term repo facility gives an additional
potential liquidity of Rs.60,000 crore. The SPV for NBFC will augment potential liquidity
by another Rs.25,000 crore. In sum, the actions of theReserve Bank since mid-
September 2008 have resulted in augmentation of actual/potentialliquidity of over
Rs.3,88,000 crore. In addition, the permanent reduction in SLR by 1.0 per centof NDTL
has made available liquid funds of the order of Rs.40,000 crore for the purpose of
credit expansion.

Liquidity Facilities

The Reserve Bank has allowed banks to avail liquidity support under the LAF for the
purpose of meeting the funding requirements of mutual funds (MFs), nonbanking
financial companies (NBFCs) and housing finance companies (HFCs) through relaxation
in the maintenance of SLR up to 1.5 per cent of their NDTL. Second, a special refinance
facility for scheduled commercial banks (excluding RRBs) was provided by the Reserve
Bank on November 1, 2008 under Section17(3B) of the RBI Act, 1934 up to 1.0 per cent
of each bank’s NDTL as on October 24, 2008. Both these facilities are currently available
up to June 30, 2009. In order to ensure that banks continue to have flexibility in their
liquidity management operations in the current market conditions, it has been decided
to extend both the refinance facilities up to September 30, 2009.

Key points
• Supply- Liquidity is controlled by the Reserve Bank of India (RBI).
• Demand- India is a growing economy and demand for credit is high though it could be
cyclical.
• Barriers of Entry- Licensing requirement, investment in technology and branch
network.
• Bargaining power of customers- High during periods of tight liquidity. Trade unions in
public sector banks can be anti reforms. Depositors may invest elsewhere if interest
rates fall.
• Bargaining power of borrowers- For good creditworthy borrowers bargaining power is
high due to the availability of large number of banks.
• Competition High- There is public sector banks, private sector and foreign banks along
with non banking finance companies competing in similar business segments.

Credit rating of the company

The affirmation of the 'B' foreign currency short-term rating on State Bank of India (SBI)
reflects the bank's sound business profile, underpinned by its continued leading
position in the domestic banking industry. The affirmation also reflects the trend of
improvement in the bank's asset quality; its gross nonperforming (NPA) ratio improved
to 9.4% in fiscal year 2002-2003, from 11.98% in the previous fiscal year. Despite a
difficult operating environment during fiscal 2002-2003, SBI lowered its gross and net
NPA ratios, as a result of increased recoveries, loan growth, write-offs and upgrades of
its classified accounts. Nevertheless, with the 90-day nonperforming asset classification
standard taking effect from March 2004, SBI's gross NPAs are expected to edge up.
This, however, will be partly mitigated by the bank's accelerated loan-loss provisioning
practice, which had been undertaken to bolster its loan-loss reserves toward the
upcoming 90-day default norm.

With a falling interest rate environment and the intense competition in the consumer
segment, SBI's net interest income (NII) margins, as denoted by its net interest income
to average assets, had fallen to 2.9% in the latest fiscal year, although that is still
relatively healthy. The bank's NII margins are expected remain healthy, supported by its
strategy of diversifying its loan portfolio into the higher-yielding consumer loans,
compared with the traditional focus on the lower-yielding large Indian corporate book. 

With some pressure on interest margins, this reinforces the necessity of banks to
enhance their sources of noninterest income. Unlike most of SBI's peers, whose
noninterest incomes are largely supported by trading profits, SBI has a more balanced
base of noninterest income, which represents a strong component of fees and
commission income. Going forward, SBI is focused on enhancing this revenue source,
through new business growth in credit cards, insurance and fund management.

Cc
SBI plans biggest IPO of Rs 14,500 crore (x) 10.97 9.62 8.83
Debt-Equity (x) 10.99 10.28 9.72
saNEW DELHI: In what may turn out to be the mother of all fund-raising, State Bank of
India is planning to mop up nearly Rs 180,000 crore over the next five years, including a
Rs 14,500-crore public offer — the country's biggest — later this fiscal. 
While the government and the SBI management are still grappling with details, sources
said the fund-raising would involve some new instruments — like issue of preference
shares — and also require policy changes to facilitate steps like a rights issue, for which
the government might shell out around Rs 10,000 crore. 

While SBI needs funds to meet regulatory and expansion needs, for investors, the issue
could be good news with fund managers saying the present share price of SBI was
much below its intrinsic value. On Monday, SBI shares closed 0.4% higher on the BSE at
Rs 1,613. 

Despite being the largest bank, SBI has the second-highest market capitalisation of Rs
84,908 crore, compared to ICICI Bank's Rs 92,884 crore. But on most parameters, SBI is
a bigger player. It has 9,700 branches, compared to ICICI Bank's 950. 

SBI's deposit base was Rs 4,50,000 crore, against ICICI Bank’s Rs 2,31,000 crore, while
its advances were estimated at Rs 3,44,000 crore and its private sector rival had a
credit base of Rs 1,98,000 crore at the end of June 2007.

SBI to merge State Bank of Indore with itself

State Bank of India (SBI), the country's largest bank, has decided to merge another
subsidiary, State Bank of Indore with itself.

The proposal was approved by the SBI board on Friday.

It should be noted that this will be the second associate bank of the SBI - after State
Bank of Saurashtra in July 2008 - to be consolidated with the parent.
Presently, SBI holds a 98.05 per cent stake in State Bank of Indore, the smallest among
its six associate banks.

State Bank cuts deposit rates by 0.25% from June 15

 

With effect from June 15, the deposit rates across all maturities of
country's largest lender, State Bank of India (SBI) will be slashed by
0.25%.

About the new cut, SBI said that deposits rates of 181 days to less
than one year term will be reduced to 6.25 per cent as against the
earlier 6.50 per cent; while interest rates for deposits of one-year to
less than 2-years will be slashed to 7 per cent from 7.25 per cent
earlier

SBI Life Insurance ties knot with Syndicate Bank

SBI Life Insurance, one of the leading private life insurers, has entered into an alliance
with Syndicate Bank, one of India’s premier public sector banks, to offer housing loan
insurance cover to lender’s home loan borrowers.

Under the arrangement, SBI Life will provide insurance cover to Syndicate Bank’s home
loan customers, who have availed loan under the special scheme announced by Indian
Bankers Association (IBA) and Government of India.

Under the special scheme, effective up to 30th June 2009, home loan customers,
between age group 18 to 55 years, availing a loan up to Rs. 20 lakh will be eligible for
home loan cover at no extra cost.

It should be noted that the housing loan cover, premium of which will be borne by the
bank, does not involve any documentation.

Syndicate Bank has registered a global business of more than Rs 1.93 trillion as on 31st
March 2009.
Conclusion

It can be concluded that the efficiency of the company is

increasing and financial position can be easily depicted from the
share price over the year, balance sheet and profit and loss a/c .
The financial position is also being determined through them. The
latest news is also being discussed with IPO issues is also been
discussed in order to determine their position the creditability
rating is also being determined.Thus,from all this it shows that the
company is growing and is building its strong image.