State Bank of India

The Banker to Every Indian

The State Bank of India (SBI) is an Indian multinational, public sector banking and financial

services statutory body. It is a government corporation statutory body headquartered
in Mumbai, Maharashtra. SBI is ranked as 236th in the Fortune Global 500 list of the world's
biggest corporations of 2019. It is the largest bank in India with a 23% market share in
assets, besides a share of one-fourth of the total loan and deposits market. The State Bank
of India (SBI) is an Indian multinational, public sector banking and financial
services statutory body. It is a government corporation statutory body headquartered
in Mumbai, Maharashtra. SBI is ranked as 236th in the Fortune Global 500 list of the world's
biggest corporations of 2019. It is the largest bank in India with a 23% market share in
assets, besides a share of one-fourth of the total loan and deposits market.

Listings and shareholding

As on 31 March 2017. Government of India held around 61.23% equity shares in SBI.
The Life Insurance Corporation of India, itself state-owned, is the largest non-promoter
shareholder in the company with 8.82% shareholding.

Shareholders Shareholding

Promoters: Government of India 54.23%

FIIs/GDRs/OCBs/NRIs 18.17%

Banks & Insurance Companies 10.00%

Mutual Funds & UTI 8.29%

Others 9.31%

Total 100.0%
The equity shares of SBI are listed on the Bombay Stock Exchange,[28] where it is a
constituent of the BSE SENSEX index. and the National Stock Exchange of India. where it is
a constituent of the CNX Nifty. Its Global Depository Receipts (GDRs) are listed on
the London Stock Exchange.
State Bank Of India ready to acquire 49% of the share of Yes Bank. Rs 2,400 crore
investment would be involved in buying 49% stake if it goes alone in stake.

MANAGEMENT PATTERN OF SBI

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 16
regional hubs and 57 zonal offices that are located at important cities throughout
India.
Domestic presence

SBI has over 24000 branches in India. In the financial year 2012–13, its revenue
was ₹2.005 trillion (US$28 billion), out of which domestic operations contributed to
95.35% of revenue. Similarly, domestic operations contributed to 88.37% of total
profits for the same financial year.
Under the Pradhan Mantri Jan Dhan Yojana of financial inclusion launched by
Government in August 2014, SBI held 11,300 camps and opened over 3 million
accounts by September, which included 2.1 million accounts in rural areas and 1.57
million accounts in urban areas.

International presence

As of 2014–15, the bank had 191 overseas offices spread over 36 countries having
the largest presence in foreign markets among Indian banks.
SBI operates several foreign subsidiaries or affiliates.

In 1989, SBI established an offshore bank, State Bank of India International

(Mauritius) Ltd. This then amalgamated with The Indian Ocean International Bank
(which had been doing retail banking in Mauritius since 1979) to form SBI (Mauritius)
Ltd. Today, SBI (Mauritius) Ltd has 14 branches – 13 retail branches and 1 global
business branch at Ebene in Mauritius. . SBI Sri Lanka now has three branches
located in Colombo, Kandy and Jaffna. The Jaffna branch was opened on 9
September 2013. SBI Sri Lanka is the oldest bank in Sri Lanka; it was founded in
1864.
In 1982, the bank established a subsidiary, State Bank of India, which now has ten
branches—nine branches in the state of California and one in Washington, D.C. The
10th branch was opened in Fremont, California on 28 March 2011. The other eight
branches in California are located in Los Angeles, Artesia, San Jose, Canoga Park,
Fresno, San Diego, Tustin and Bakersfield.
In Nigeria, SBI operates as INMB Bank. This bank began in 1981 as the Indo–
Nigerian Merchant Bank and received permission in 2002 to commence retail
banking. It now has five branches in Nigeria.
In Nepal, SBI owns 55% of "Nepal SBI Bank Limited". (The state-owned Employees
Provident Fund of Nepal owns 15% and the general public owns the remaining
30%.) Nepal SBI Bank Limited has branches throughout the process.

SWOT ANALYSIS
Strengths in the SWOT analysis of SBI
SBI is the largest bank in India in terms of market share, revenue and
assets.
As per recent data the bank has more than 13,000 outlets and 25,000 ATM
centres
The bank has its presence in 32 countries engaging currency trade all over
the world
The bank has a merged with State Bank of Saurashtra, State bank of
Indore and the bank is planning to go further acquisition in the current
FY2012.
SBI has the first mover advantage in commercial banking service
SBI has recently changed its vision and mission statements showing a sign
of inclination towards new age banking servicesX

Weaknesses in the SWOT analysis of SBI

Lack of proper technology driven services when compared to private banks
Employees show reluctance to solve issues quickly due to higher job
security and customers’ waiting period is long when compared to private
banks
The banks spends a huge amount on its rented buildings
SBI has the largest number of employees in banking sector, hence the
bank spends a considerable amount of its income in employee’s salary
compensation
In spite of modernization, the bank still carries the perception of traditional
bank to new age customers
SBI fails to attract salary accounts of corporate and many government
sector employees salary accounts are also shifted to private bank for ease
of operations unlike beforeX
Opportunities in the SWOT analysis of SBI
SBI’s merger with five more banks namely State Bank of Hyderebad, State
bank of Patiala, State bank of Bikaber and Jaipur, 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
SBI is planning to expand and invest in international operations due to
good inflow of money from Asian Market
Since the bank is yet to modernize few of its banking operations, there is a
better scope of using advanced technologies and software to
improve customer relations
Young and talented pool of graduates and B schools are in rise to open
new horizon to so called “old government bank”X

Threats in the SWOT analysis of SBI

Net profit of the year has decline from 9166.05 in the year FY 2010 to
7,370.35 in the year FY2011
This shows the reduce in market share to its close competitor ICICI
Other private banks like HDFC, AXIS bank etc
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
Other government banks like PNB, Andhra, Allahabad bank and Indian
bank are showing
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.X

COMPETITORS
The top 10 competitors in SBI's competitive set are ICICI Bank, BOI, HDFC,
IOB, Axis Bank, Canara Bank, BOB, Allahabad Bank, Punjab
National Bank and UCO Bank. Together they have raised over 12.9B
between their estimated 579.7K employees.