INTRODUCTION TO BANK AND STATE BANK OF INDIA ACT

The origin of Banking can be traced backed to Merchant around 2000 BC when a few families owned,
and managed firms engaged in sale and purchase of commodities like grains. They also facilitated trade
and commerce. An offshoot of Banking, money lending is also found in India since Vedic age period i.e.
2000 to 1400 B C. Kautilya or Chanakya as widely known, has mentioned about banking terminology as
interest, creditors, lenders in his book Arthasharstra.

The modern Banking system in India came in prominence since 1770, when Bank of Hindustan was
formed. Later Bank of Bengal and presidency banks were pioneers in popularizing Banking in 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
interests of the Imperial Bank of India were acquired by the Reserve Bank of India and the State Bank of
India was created by an Act of Parliament to succeed the Imperial Bank of India. Bank conducts its
business and operations as per provisions of STATE BANK OF INDIA ACT.

The Government of India in June 2007 acquired the entire Reserve Bank of India (RBI) shareholding in
State Bank of India. SBI started its journey with commitment to nation building by purposeful banking,
catering to the financial needs of the nation as a whole. The government has nearly 57.13 percent
shareholding in the bank. The Bank has completed over 214 years of existence, with an unbroken record
of profitability. The Bank transacts general banking business of every description including, foreign
exchange, merchant banking and mutual funds, Insurance, private equity etc.

The State Bank of India has an overwhelming presence in the Indian financial sector. The Bank through
its various non-banking subsidiaries, provides a whole range of financial services which include life
insurance, general insurance, investment banking, mutual funds, credit card, factoring, security trading
and primary dealership in the money market. The Bank also enjoys the distinction of the largest ATM
network in the country with over 58000 ATMs & various types of cards have been deployed for using on
Cash Deposit Machines and Cash Recyclers to facilitate cash deposit by customers. State Bank of India is
lending big support to the society in the form of 34.51 % of market share in Housing Loans amongst all
scheduled commercial banks. On technology front bank’s YONO has won the Asian Banking and Finance
Retail Banking award. Bank’s digital footprints are thus comfortable in India and abroad. State Bank of
India is the largest commercial bank in India in terms of Deposits, Advances, Customers and Banking
outlets. Our bank is committed towards the economic and social wellbeing of the downtrodden and
bank’s CSR activities are widespread and deep-rooted.

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