Kashyap Makwana Sbi Project

A Project Work on
STATE BANK OF INDIA
BY
KASHYAP JIGNESHBHAI MAKWANA
Enrollment no.: -202010101173
Semester: - 4TH
Guided By
Mr. Rakeshkumar G. Chauhan
Professor
(B. Com., M. Com., M. Phil., Ph. D. (Scholar), UGC NET, GSET)
A Project Work
Submitted to
Gujarat University
in PartialFulfillment of the Requirements for
B. B. A. (Bachelor of Business Administration) of
For Subject CC-214 Industrial Exposure & Viva Voce
DIVABA INSTITUTE OF BUSINESS ADMINISTRATION (532)

SNME Campus, At- Anasan, Ta. - Dascroi,
Ahmedabad-382330.Gujarat, India
1 DIVABA INSTITUTE OF BUSINESS ADMINISTRATION (532)

SNME Campus, At- Anasan, Ta. -Dascroi,
Ahmadabad -382330.Gujarat, India
CERTIFICATE
This is to certify that this Project Work on “STATE BANK OF INDIA’’ submitted in
partial fulfillment of the requirement for the degree of Bachelor of Business
Administration, of Gujarat University.
This is a bonafide work done by, Student of Divaba Institute of Business

Administration(532) under our guidance and that no part of this project has been
submitted for any other Degree/Diploma.
Name: - KASHYAP JIGNESHBHAI MAKWANA

Enrollment number:- 202010101173
Semester: - 4th
Year: Feb/Mar - 2022
Stamp and Signature

Director,

Anasan, Ahmedabad-30
SNME Campus, At- Anasan, Ta. - Dascroi,

Ahmadabad -382330.Gujarat, India
This is to certify that this Project Work on on “ STATE BANK OF INDIA’’ submitted
in partial fulfillment of the requirement for the degree of Bachelor of Business
Administration, of Gujarat University.
This is a bonafide work done by, Students of Divaba Institute of Business

Administration (532) under my guidance and that no part of this project has been
submitted for any other Degree/Diploma.
Guided by
Signature of guide
(Mr. Rakeshkumar G. Chauhan)
(Professor)
(B. Com., M. Com., M. Phil., Ph. D. (Scholar), UGC NET, GSET)
DIVABA INSTITUTE OF BUSINESS ADMINISTRATION,
Enasan, Ahmedabad-30)

Declaration
We undersigned students of Divaba Institute of Business Administration (532) hereby

that Project Work “ STATE BANK OF INDIA’’ is result of our own research work
and has not been previously submitted to any other university for any other examination.
We hereby further declare that all information of this document has been obtain and
presented in accordance with academic rules and ethical conduct.
Name: KASHYAP JIGNESHBHAI MAKWANA

Enrollment number :- 202010101173
Semester: - 4th
Signature
(KASHYAP JIGNESHBHAI MAKWANA)
DATE : 13/01/2022
Place: Ahmedabad

ACKNOWLEDGEMENT
We want to use this platform to say a very heartily to God almighty for bringing me this far. All
glory is to his name.
We heartily acknowledge our sincere gratitude Mr Rakeshkumar G. Chauhan, Professor,

Divaba Institute of Business Administration, Anasan, Ahmedabad. His able guidance,
encouragement and support from the initial to the final level enabled us to development and
understanding of the subject. His comments and supervision helped us to solve my difficulties
and hurdles during research work.
The experience of working under his guidance has proved quite fruitful as it gave me an
opportunity to work under his expertise due to his command over the subject. In spite of his
commitments with other activities, he has always spared his valuable time to assess our work.
We express our gratitude to his valuable support.
Heartily thanks to all faculty members at Divaba Institute of Business Administration, Anasan,
Ahmadabad whose ideas, critical insights and suggestions have been invaluable in the
preparation of this project.
Last but not least we would like to extend my deep sense of gratitude to our parents, all family
members, friends and our well-wishers who have directly or indirectly supported and helped us
in the completion of our project successfully.

INDEX
NO HIGHLIGHTS PG NO
1 PREFACE 1-3
2 DECLARATION 04
3 ACKNOWLEDGEMENT 05
4 INTRODUCTION 07
5 PURPOSE OF THE STUDY 08
6 OBJECTIVE OF THE STUDY 09
7 INTRODUCTION OF THE ORGANIZTION 10 - 11
8 RESEARCH METHODLOGY 11
9 STATE BANK OF INDIA 12
10 VIRTUAL BANKING 14
11 GLIMPSE OF CHAIRMAN ( 2022) 15
12 BRIEF HISTORY OF THE ORGANIZATION 17
13 HISTORY 19
14 ESTABLISHMENT 21
15 BUSINESS 22
16 IMPERIAL BANK OF INDIA 25
17 GLIMPSE OF SBI GOLDEN YEARS 26

INTRODUCTION
T he world of commercial banking is undergoing a deep transformations a
result of marketable instruments competing with loan sand demand

deposits. Because of this strong competition, commercial banks are
struggling to make acceptable margins from their traditional Business
entering into investment banking. Increasing competition has forced banks
to search for more income at the expense of more risk. Banks that lent
heavily to Asia in search of better returns than those available in Western
markets are now being blamed for bad credit decisions. The Asian crisis
has renewed interest noncredit risk management casting doubts on the
effectiveness of current credit regulations. Technological changes have
also heightened competition by making it easier to imitate bank services.
The traditional advantage of physical proximity to clients given by extended
networks of branches has vanished. Banks have to compete with money
market mutual funds for deposit business, commercial papers, and
medium-term notes for bank loans. As margins are squeezed, commercial
banks in the United States and Europe have been forced to cut costs and
branches while diversifying into pensions, insurance, asset management,
and investment banking. In the United States, many banks call themselves
financial service companies even in their reported financial statements.
Diversification, however, has not always proved to be an effective strategy,
and many banks have had to revert to a concentrated business. These
examples illustrate how commercial banks are reinventing themselves, not

just once but Many times. All these changes are creating an identity crisis
for old fashioned bankers, leading to the key question, ―What is a bank
today?‖ The question is difficult, but evidence suggests that the concept of
banking is being modified and the traditional barriers among financial
service sub industries (retail banking, private banking, investment banking,
asset management, insurance, etc.) are vanishing. Illustrating what an
entity
➢PURPOSE OF THE STUDY:

Our Purpose is to be Indian Is SBI benchmarking ourselves
against international standards and best practices in term of
product offering, technology, service levels, risk management and
audit & compliance.
The objective is to build sound customer

franchise across distinct businesses so as to be a preferred
provider of banking services for target retail and wholesale
customer segments, and to achieve a healthy growth in
profitability, consistent with the bank‘s risk appetite. We are
committed to do this while ensuring the highest level of ethical
standards, professional integrity, corporate governance and
regulatory compliance.

➢ OBJECTIVE OF THE STUDY: To have an analysis investor of
fixed deposit in Kadi.
❖ To accomplish this objective it has been divided into five.
✓ To study the types of benefits provided by bank services
✓ To determine the feedback on services provided by a corporation bank.
✓ To determine customers perception towards corporation bank and their
expectation form private bank.
✓ To know the most preferred fixed deposit policy.
✓ To determine reasons behind opting for a fixed deposit

INTRODUCTION TO THE ORGANISATION
➢Literature Review:
• Suoranta and Mattila indicated that mobile banking is among the most recent
financial channel today. Several authors have further identified the benefits of
mobile banking in terms of ubiquity coverage, flexibility, interactivity, and with
greater accessibility compared to conventional banking channels such as
Automated Teller Machine (ATM), and non-mobile banking
• In the UK, mobile banking is considered to be one of the most value-added and
important mobile services available (Kelly, 2003). However, the adoption rate is
yet to be determined. The study examined both innovative attributes and
customers‘ perceived risk in order to understand customers‘ behavior and
motivation toward this innovation. The findings were found to be helpful to the
bankers.
• A Study conducted by Uppal R.K. (Uppal, Feb. 2008) studies the extent of
mobile banking in Indian banking industry during 2000-2007. The study
concludes that among all e-channels, ATM is the most effective while mobile
banking does not hold a strong position in public and old private sector but in
new private sector banks and foreign banks m-banking is good enough with
nearly 50 pc average branches providing m-banking services. M-banking
customers are also the highest in e-banks which have positive impact on net
profits and business per employee of these banks. Among all, foreign banks are
on the top position followed by new private sector banks in providing m-banking
services and their efficiency is also much higher as compared to other groups.
The study also suggests some strategies to improve m-banking services.

• A study conducted by Tiwari B. and Herstatt (2006) examine the installation of
mobile banking and mobile financial services provided in Germany and other
countries. 50 banks worldwide have been selected, half of them from Germany
during May/June, 2005. From Indian banks, Bank of Punjab, HDFC, ICIC are
dominating, providing mobile-financial services to their customers.
RESEARCH METHODLOGY
❖OBJECTIVE OF MARKETING RESEARCH
✓PRIMARY OBJECTIVE:
➢ The main objective of research is to analyze the consumer awareness of STAT
BANK OF INDIA market comparison of the players in the market. To find out the
perception, satisfaction and acceptance level of the STAT BANK OF INDIA in the
market.
✓SECONDARY OBJECTIVE:
➢The primary target of the market research was to find out preference
of people towards bank.
➢Studies the facilities provide to the consumer by bank.

INTRODUCTION TO THE ORGANISATION
T HE BANKING INDUSTRY Nationalized banks
such as State Bank Of India (SBI), though pygmies in the international

banking market, are banking behemoths of India. They have branches
spread over the entire length and breadth of the country. SBI in particular is
all-pervasive enjoying a sprawling network of 9000 branches. Its blue and
white shingle is visible to the smallest hamlet. It has assets understood to
be worth about Rs2, 22,500 crore ($52 billion). SBI has a very conservative
approach to accounting particularly when it comes to declaration of its
assets. Probably modesty does not permit the bank to exhibit its strengths.
In particular, it has real estate properties some of which are heritage sites
all over the country. These are estimated to collectively command a value
of Rs.30,000 crores. This, it is believed, does not get reflected in its book of
accounts. SBI enjoys a monopoly of the government business. The
Reserve Bank of India owns about 60% of the bank‘s equity. To its credit,
SBI mobilized $4.2 billion through the Resurgent India Bonds (RIB) issue in
just 3 months down the post-Pokhran sanction period. This was the difficult
time when the international credit rating agencies had downgraded the
country. SBI, time and again, does a rescue act in the forex market to
contain any volatility of the rupee. SBI was formed under the SBI Act in
1955 with the takeover of Imperial Bank and amalgamation of Bank of
Bengal, Bank of Bombay, and Bank of Madras. The government mopped

up around 93% of the equity, leaving 7% to private ownership. By this act
the equity of RBI cannot be diluted below 55%. SBI enjoys a pool of best
managerial talent, assured government business, a countrywide network of
branches and strong brand credibility in the Indian market. But, that numero
Uno position is sliding with the entry of sleeker private and foreign banks
into the Indian Banking scene. The bank is continuously restructuring itself
and for this, they even hire the services of foreign consultants but the pace
has to be hastened.
Hemchandracharya North Gujarat University, Patan N.P College Of

Computer Studies & Management Page 12 With the government offering
an assured business, nationalized banks and State Bank of India in
particular should not take a complacent view. They should evolve service-
intensive products and make their employees customer-friendly. With
competition from private and foreign banks knocking at the door, the banks
should realize, size is no more an insurance against the onslaught of
competition from sleek private and foreign banks. A revolutionary approach
to privatize ownership is the need of the hour

Virtual Banking:
SBI has yet to computerize its operations and network all its branches. The computers
currently available serve only to relieve the burden of the clerical staff of maintaining
manual ledgers and not to penetrate into areas of customer service. ATMs, Anytime-
Anywhere, round the clock and telephone banking is still a far cry. These computers at
the best remain only as desk ornaments. With the New Telecom Policy (NTP) almost in
place, telecom sector will soon be revolutionized. E-commerce, telephone banking,
consumer banking, Internet banking, insurance et al are waiting just around the corner.
At least in major metros, virtual banking will soon take-over from the brick-mortar banks
Privatization and Credit disbursement:
1. SBI has yet to computerize its operations and network all its branches. The
computers currently available serve only to relieve the burden of the clerical staff
of maintaining manual ledgers and not to penetrate into areas of customer
service. ATMs, Anytime-Anywhere, round the clock and telephone banking is still
a far cry. These computers at the best remain only as desk ornaments. With the
New Telecom Policy (NTP) almost in place, telecom sector will soon be
revolutionized. E-commerce, telephone banking, consumer banking, Internet
banking, insurance et al are waiting just around the corner. At least in major
metros, virtual banking will soon take-over from the brick-mortar banks.
Privatization and Credit disbursement: Talks about privatization of the bank‘s
ownership have been initiated but the SBI act of 1955 does not permit RBI‘s
ownership to be diluted to below 55%. This act is outdated and needs to be re-
addressed. However, efforts have been initiated by SBI to privatize its non –
banking subsidiaries like SBI Caps, SBI Gilts, SBI Funds Management, where
SBI‘s holding is about 85% of the equity. But the pace has to be hastened so that
investments thus released can migrate to more important areas like development
of new technologies and products in customer service and service intensive

areas. Privatization also helps to professionalize the banks‘ day-to-day operation,
which will allow the management more freedom in decision making during credit
disbursement. To aid privatization and effect a better price realization, the bank is
attempting to change – over its accounting and reporting procedures to comply
with US – GAAP norms. This is a prerequisite for trying out the ADR route, as it
is known that US market is by far the undisputed biggest. market and can offer
the best price. At the moment, the SBI stock is undervalued at Rs.240 whereas
experts expect Rs.300 would be a more realistic value. Action on this front at
blitzkrieg pace is the need of the hour
STATE BANK OF INDIA ( PRESENT ) 2022
Dinesh Kumar Khara
(born 28 August 1961) is a career banker and Chairman of

the State Bank of India a position he assumed on 7 October
2020

Manpower Retraining and not Retrenchment:
➢ As a hangover of the past socialistic mindset, all the nationalized banks have
excess workforce. This is indeed a hot potato for the management of many
enterprises and is therefore being handled with kid gloves. In India, it is
everyone‘s worry to look at business as a source of employment, while making
money is secondary. In this ocean of manpower, every institution does have its
share of highly skilled and talented manpower, which contribute to asset
building. It is the semi skilled manpower having outdated skills, which form the
excess baggage. All banks must invest in re-training the manpower so that they
can migrate from the areas that will be vacated by computerization. The level of
Non-Performing-Assets (NPAs) is still at very high levels and to start with, some
of this excess manpower can cover areas of debt recovery. At the same time,
one should also take note of the flight of talent from these nationalized banks to
newly set-up private and foreign banks. And, it is these new banks‘ top officials
after migrating from the government banks are targeting at the top corporate
clients and thus poaching into the corporate business, which has been the
mainstay of the nationalized banks. This will soon become a problem of serious
proportion unless the banks initiate steps to stem the flow. It is difficult, to
exclusively address the problem of excess manpower by schemes such as
voluntary retrenchment scheme (VRS) because while attempting to remove dead
wood, talent also takes an exit. Many industries have faced this problem. Also it
will be over simplicity to state that the salaries should be raised because that will
only start a wage war. Instead, the banks should involve the services of
international consultants specialized in this field and take a holistic view of the
problem. Retraining and Rationalization of manpower commands higher priority
over Retrenchment of manpower

BRIEF HISTROY OF THE ORGANIZATION
• Imperial Bank of
Formerly India
• Public Sector
Type Undertaking
• NSE: SBIN
Traded as • BSE: 500112
• Banking, financial
Industry services

Headquarters
State Bank Bhawan, M.C. Road, Nariman
Point, Mumbai, Maharashtra, India
Number of locations Net income

22,219 Branches, 62,617 ATMs in India, ₹22,405
International: 229 Branches in 31 crore (US$3.0 billion)
countries (2021)
Revenue Operating income

Area served ₹385,338 ₹78,898
crore (US$51 billion) (202 crore (US$10 billion) (202
Worldwide 1) 1)
Number of 245,642 (March

employees 2021)

HISTORY
State Bank of India (SBI) is an Indian multinational public

sector bank and financial services statutory body headquartered in Mumbai,
Maharashtra. SBI is the 43rd largest bank in the world and ranked 221st in the Fortune
Global 500 list of the world's biggest corporations of 2020, being the only Indian bank on
the list.[6] It is a public sector bank and the largest bank in India with a 23% market
share by assets and a 25% share of the total loan and deposits market. [7] It is also
the fifth largest employer in India with nearly 250,000 employees
The bank descends from the Bank of Calcutta, founded in 1806 via the Imperial Bank of
India, making it the oldest commercial bank in the Indian Subcontinent. The Bank of
Madras merged into the other two presidency banks in British India, the Bank of
Calcutta and the Bank of Bombay, to form the Imperial Bank of India, which in turn
became the State Bank of India in 1955.[11] Overall the bank has been formed from
the merger and acquisition of nearly twenty banks over the course of its 200 year
history.[12][13] The Government of India took control of the Imperial Bank of India in 1955,
with Reserve Bank of India (India's central bank) taking a 60% stake, renaming it State
Bank of India.
The roots of State Bank of India lie in the first decade of the 19th century when the Bank
of Calcutta later renamed the Bank of Bengal, was established on 2 June 1806. The
Bank of Bengal was one of three Presidency banks, the other two being 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 royal charters. These three banks received the exclusive right to issue
paper currency till 1861 when, with the Paper Currency Act, the right was taken over by
the Government of India. The Presidency banks amalgamated on 27 January 1921, and
the re-organised banking entity took as its name Imperial Bank of India. The Imperial
Bank of India remained a joint-stock company but without Government participation.
Pursuant to the provisions of the State Bank of India Act of 1955, the Reserve Bank of
India, which is India's central bank, acquired a controlling interest in the Imperial Bank of
India. On 1 July 1955, the Imperial Bank of India became the State Bank of India. In
2008, the Government of India 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. This
made eight banks that had belonged to princely states into subsidiaries of SBI. This was

at the time of the First Five Year Plan, which prioritised the development of rural India.
The government integrated these banks into the State Bank of India system to expand
its rural outreach. In 1963 SBI merged State Bank of Jaipur (est. 1943) and State Bank
of Bikaner (est.1944).
SBI has acquired local banks in rescues. The first was the Bank of Bihar (est. 1911),
which SBI acquired in 1969, together with its 28 branches. The next year SBI acquired
National Bank of Lahore (est. 1942), which had 24 branches. Five years later, in 1975,
SBI acquired Krishnaram Baldeo Bank, which had been established in 1916 in Gwalior
State, under the patronage of Maharaja Madho Rao Scindia. The bank had been
the Dukan Pichadi, a small moneylender, owned by the Maharaja. The new bank's first
manager was Jall N. Broacha, a Parsi. In 1985, SBI acquired the Bank of Cochin
in Kerala, which had 120 branches. SBI was the acquirer as its affiliate, the State Bank
of Travancore, already had an extensive network in Kerala.
There was, even before it actually happened, a proposal to merge all the associate
banks into SBI to create a single very large bank and streamline operations.[14]
The first step towards unification occurred on 13 August 2008 when State Bank of
Saurashtra merged with SBI, reducing the number of associate state banks from seven
to six. On 19 June 2009, the SBI board approved the absorption of State Bank of
Indore, in which SBI held 98.3%. (Individuals who held the shares prior to its takeover
by the government held the balance of 1.7%.)[15]
The acquisition of State Bank of Indore added 470 branches to SBI's existing network of
branches. Also, following the acquisition, SBI's total assets approached ₹10 trillion. The
total assets of SBI and the State Bank of Indore were ₹9,981,190 million as of March
2009. The process of merging of State Bank of Indore was completed by April 2010,
and the SBIndore branches started functioning as SBI branches on 26 August 2010. [16]
On 7 October 2013, Arundhati Bhattacharya became the first woman to be appointed
Chairperson of the bank.[17] Mrs. Bhattacharya received an extension of two years of
service to merge into SBI the five remaining associate banks.

Establishment
The establishment of the Bank of Bengal marked the advent of limited liability, joint-
stock banking in India. So was the associated innovation in banking, viz. the decision to
allow the Bank of Bengal to issue notes, which would be accepted for payment of public
revenues within a restricted geographical area. This right of note issue was very
valuable not only for the Bank of Bengal but also its two siblings, the Banks of Bombay
and Madras. It meant an accretion to the capital of the banks, a capital on which the
proprietors did not have to pay any interest. The concept of deposit banking was also an
innovation because the practice of accepting money for safekeeping (and in some
cases, even investment on behalf of the clients) by the indigenous bankers had not
spread as a general habit in most parts of India. But, for a long time, and especially up
to the time that the three presidency banks had a right of note issue, bank notes and
government balances made up the bulk of the invertible resources of the banks. The
three banks were governed by royal charters, which were revised from time to time.
Each charter provided for a share capital, four-fifth of which were privately subscribed
and the rest owned by the provincial government. The members of the board of
directors, which managed the affairs of each bank, were mostly proprietary directors
representing the large European managing agency houses in India. The rest were
government nominees, invariably civil servants, one of whom was elected as the
president of the board.

Business
➢ The business of the banks was initially confined to discounting of bills of
exchange or other negotiable private securities, keeping cash accounts and
receiving deposits and issuing and circulating cash notes. Loans were restricted
to Rs.one lakh and the period of accommodation confined to three months only.
The security for such loans was public securities, commonly called Company's
Paper, bullion, treasure, plate, jewels, or goods 'not of a perishable nature' and
no interest could be charged beyond a rate of twelve per cent. Loans against
goods like opium, indigo, salt woollens, cotton, cotton piece goods, mule twist
and silk goods were also granted but such finance by way of cash credits gained
momentum only from the third decade of the nineteenth century. All
commodities, including tea, sugar and jute, which began to be financed later,
were either pledged or hypothecated to the bank. Demand promissory notes
were signed by the borrower in favour of the guarantor, which was in turn
endorsed to the bank. Lending against shares of the banks or on the mortgage
of houses, land or other real property was, however, forbidden. Indians were the
principal borrowers against deposit of Company's paper, while the business of
discounts on private as well as salary bills was almost the exclusive monopoly of
individuals Europeans and their partnership firms. But the main function of the
three banks, as far as the government was concerned, was to help the latter
raise loans from time to time and also provide a degree of stability to the prices
of government securities.

Major change in the conditions
A major change in the conditions of operation of the Banks of Bengal, Bombay and
Madras occurred after 1860. With the passing of the Paper Currency Act of 1861,
the right of note issue of the presidency banks was abolished and the Government
of India assumed from 1 March 1862 the sole power of issuing paper currency within
British India. The task of management and circulation of the new currency notes was
conferred on the presidency banks and the Government undertook to transfer the
Treasury balances to the banks at places where the banks would open branches.
None of the three banks had till then any branches (except the sole attempt and that
too a short-lived one by the Bank of Bengal at Mirzapore in 1839) although the
charters had given them such authority. But as soon as the three presidency bands

were assured of the free use of government Treasury balances at places where they
would open branches, they embarked on branch expansion at a rapid pace. By
1876, the branches, agencies and sub agencies of the three presidency banks
covered most of the major parts and many of the inland trade centers in India. While
the Bank of Bengal had eighteen branches including its head office, seasonal
branches and sub agencies, the Banks of Bombay and Madras had fifteen each.
Hemchandracharya North Gujarat University, Patan N.P College Of Computer
Studies & Management Page 18 Bank of Madras Note Dated 1861 for Rs.10
Presidency Banks Act The presidency Banks Act, which came into operation on 1
May 1876, brought the three presidency banks under a common statute with similar
restrictions on business. The proprietary connection of the Government was,
however, terminated, though the banks continued to hold charge of the public debt
offices in the three presidency towns, and the custody of a part of the government
balances. The Act also stipulated the creation of Reserve Treasuries at Calcutta,
Bombay and Madras into which sums above the specified minimum balances
promised to the presidency banks at only their head offices were to be lodged. The
Government could lend to the presidency banks from such Reserve Treasuries but
the latter could look upon them more as a favor than as a right. Bank of Madras

IMPERIAL BANK OF INDIA
Imperial Bank The Imperial Bank during the three and a half decades of its existence
recorded an impressive growth in terms of offices, reserves, deposits, investments and
advances, the increases in some cases amounting to more than six-fold. The advances,
the increases in some cases amounting to more than six-fold. The financial status and
security inherited from its forerunners no doubt provided a firm and durable platform.
But the lofty traditions of banking which the Imperial Bank consistently maintained and
the high standard of integrity it observed in its operations inspired confidence in its
depositors that no other bank in India could perhaps then equal. All these enabled the
Imperial Bank to acquire a pre-eminent position in the Indian banking industry and also
secure a vital place in the country's economic life. Stamp of Imperial Bank of India
When India attained freedom, the Imperial Bank had a capital base (including reserves)
of Rs.11.85 crores, deposits and advances of Rs.275.14 cores and Rs.72.94 crores
respectively and a network of 172 branches and more than 200 sub offices extending all
over the country. First Five Year Plan In 1951, when the First Five Year Plan was
launched, the development of rural India was given the highest priority. The commercial
banks of the country including the Imperial Bank of India had till then confined their
operations to the urban sector and were not equipped to respond to the emergent
needs of economic regeneration of the rural areas. In order, therefore, to serve the

➢ BRIEF HISTORY OF THE ORGANIZATION
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.
1960
- During this period, State Bank of Jaipur, State Bank of Bikaner, State Bank of Indore, State
Bank of Travancore, State Bank of Mysore, State Bank Patiala and State Bank of Saurashtra
became subsidiaries of the bank

1962 -
The Bhor State Bank Ltd was Amalgamated with the Bank bring the total number of minor
State associated banks so amalgamated to five. A scheme for amalgamation of the Bank of
Aundh Ltd., was also approved. On 20th August, the Unit Bank Ltd. Chennai was taken over
by the Bank.
1963 –
In october Branch in London become bankers to the Indian High Commission, thereby
taking over a function till then performed by the office of RBI. Of the other business
transacted by the Branch, an important aspect was medium term loans mostly to Indian
shipping companies.
1969 –
On November 8th the Bank of Behar Ltd was amalgamated.
1972
- A merchant banking division was set up in the central office to cater to promotional needs
of the corporate sector

1977
- During the year bank introduced the Perennial Pension Plan Scheme under which if the
depositors make a regular monthly payment of a fixed amount for a period of 84 to 132
months, they become eligible from the 86th and 134th months respectively for getting a
monthly pension of predetermined amount forever. In order to meet all the developmental
needs of the villages including their social and cultural needs, the bank launched an
integrated rural developement programme, aimed at not only covering the credit needs of
agriculture and agricultural activities and village industries, but also housing and social
activities.
1980 –
Bank introduced the cash Certificate Scheme under which deposit certificate are issued for
a fixed period on payment of the issue price specified for the respective maturity period and
the face value corresponding to the issue price plus interest compounded at quarterly

intervals is paid on maturity. The certificates are issued for the face value of Rs 100, Rs 1000,
Rs 10,000 and Rs 50,000 maturing after 29,65,84 and 120 months.
1982 –
The Non-Resident Investment Cell was set up, which had streamlined the working
operations of the non-resident investment sections at important centers. 1983 - SBI
launched self employment scheme, for providing self-employment to educated unemployed
youth. Educated unemployed youths are encouraged to undertake self-employment
ventures in industry, services and business.
1984 –
The bank provide need-based rehabitation assistance to large and medium sick industrial
units.
1985 –
During the year, company set up a data bank of sick units available for taken over by
healthy units. With effect from 26th August, the Bank of Cochin Ltd with 108 branches was
also amalgamated with the Bank. (i) All shares in the Capital of the Imperial Bank of India
was vested in the RBI. The SBI was registered with an Authorised capital of Rs.20 crores, and
an issued and paid up capital of Rs.562,50,000 divided into 562,500 shares of Rs.100 each.
(ii) Every person who on the 30th June, 1955, was registered as a holder of shares in the
Imperial Bank of India was paid by the Reserve Bank of India. 44,37,500 No. of shares issued
at a premium of Rs 160 per share.
1986

- At the end of the year 324 sick units with an outstanding of Rs 1069 crores were assisted.
Of these, 107 units were considered viable and 60 from them were placed under regular
nursing programme. On 1st August a new subsidiary named SBI Capital Market was
functioning independently, took up leasing business and certain other new services.
100,00,00 No. of shares issued at a prem. of Rs 160 per share.
1987
- Up to the end of the year the bank had sponsored 30 Regional Rural Banks covering 66
backward and underbanked districts in the country. In terms of deployment, the advances
portfolio of overseas offices rose to Rs 5,767 crores. Investments in inter-bank money

markets and also in prime securities amounted to Rs 2,670 crores by the end of the year.
1988 –
During the year bank initiated UPTECH an Industrial Technology Group to direct and guide
programmes aimed at facilitating technology upgradation. Also a scheme to develop
enterpreneurship among woman under the name "Stree Shakti" was launched. Several
concessions in respect of margin and and rate of interest have been built into the package.
Three pilot programmes were launched at Chennai, Calcutta, and Hyderabad. On 20th
September, the bank inaugurated `SBINET,' an integrated communication project aimed at
improving customer service, operational efficiency and administrative convenience. The
network has been designed to handle voice, fax data and manages through the trunk routes
and exchanges in important centres. The bank sponsored 30 RRB's covering 66 divisions in
the country. 74 branches were opened raising the branch network to 2,306.
1989 –
SBICAP, in their capacity as Trustee and Manager of Mutual Fund, launched two scheme viz.,
Mangnum Monthly Income Scheme

1989
Magnum Tax Service Scheme
1990.
During the same period SBI in association with Morgan Stanley Asset Management Inc. of
USA, launched the India Magnum Fund.
1990 –
New products launched during the year included a Regular Income Scheme, offering an
assured return in excess of 12% and the first Pure Growth Scheme aimed at capital
appreciation. A Second offshore fund of US $ 12 million called Asian Convertible and Indian
Fund was launched in association with Asian Development Bank, Manila. During Kharif 1990,
the bank introduced an agricultural credit card, known as SBI Green Card to give greater
liquidity and flexibility to farmers in procuring agricultural inputs. The scheme was
introduced on a pilot basis in 125 intensive centre branches. As at on 31st March, SBIMF had

over 3,40,000 Indian investors and about Rs 475 crores by way of investible domestic funds.
50,00,000 No. of shares issued at a prem. of Rs 160 per share.
1991 –
During February the bank set up a new subsidiary called the SBI Factors and Commercial
Serviced Pvt. Ltd. for rendering factoring services to the industrial and commercial units in
Western India.

1992 –
The bank sponsored 30 RRBs with a network of 3189 offices covering 102 backward and
under banked districts of the country. A sum of Rs 15.25 crores was contributed towards the
share capital of the RRBs. During the period bank intoduced `Stockinvest' scheme. Also
introduced a `Gyan Jyoti' that replaced earlier education loan schemes and offers substantial
augmented assistance to students pursuing higher studies. Moreover dedicated NRI
branches equipped with State-of-the-art technology was set up at Mumbai and Delhi to
cater to the special needs of NRI residents.
1993

During the year as a part of its overseas expansion the bank established representative
office in Tashkent. During December, the bank issued 124,000,000 equity shares of Rs.10
each for cash at a premium of 90 per share of which 245,00,000 shares each were reserved
for allotment on a preferential basis to Indian Financial Institutions and Indian Mutual Funds.
Balance issued to the public. Simultaneously it came out with another issue of 50,00,000
12% unsecured redeemable floating rate bonds in the nature of promisory notes of the face
value of 1000 each. Oversubscription upon a further amount of Rs 500 crores (in all Rs 1000
crores) was to be allowed. The face value of each bond would be redeemed at par at the
expiry of 10 years from the date of allotment. In the event that the State Bank decides to
exercise its option to call up the bonds they would be redeemed at the rate of 5% at the
end of 5th year, at 3% at the end of 7th year and 1% at the end of 9th year. It was proposed
to issue 1200,00,000 right equity shares of Rs.10 each at a premium of Rs.50 per share in the
proportion of 3:5. Also another 120,00,000 equity shares of Rs.10 each were to be issued at
a premium of Rs.50 per share to employees on an equitable basis. 250 sick units with the
bank were referred to the BIFR including 31 public sector units. Approved rehabilitation
packages being implemented in 85 units and 41 have been recommended to be wound up.
The bank continued to be appointed as the operating agency and rehabilitation packages
were submitted to BIFR in 48 cases. Equity shares subdivided. 1418,50,000 No. of Equity
Shares of Rs. 10 each issued at a prem. of Rs 90 per share to the public. Another
1319,78,726 shares of Rs 10 each offered at a prem. of Rs 90 per share on Rights basis and
to employees.
1994 –
358 sick units with the bank were referred to the BIFR including 55 public sector units.
Approved rehabilitation packages implemented in 87 units. 1,80,463 No. of Shares kept in
abeyance were issued.
1995 –
351 sick units with the bank were referred to the BIFR including 66 public sector units.
Approved rehabilitation packages implemented in 112 units. 683 No. of shares kept in
abeyance were allotted.
1996 –
On 3rd October the Bank Issued 261,45,000 GDRs amounting to 5,22,90,000 equity shares.
1 GDR is issued to 2 equity shares. The issue price of GDR was US $ 14.15 per GDR.
1997 –
Shares issued to employees of the bank bearing distinctive numbers 46,26,00,001 to

47,46,00,000 will not be good delivery. The rights issue was for 12 crore equity shares at a
premium of Rs.50 aggregating Rs.720 crore in addition to a further issue of 1.2 crore equity
shares of Rs.10 at a premium of Rs.50 aggregating Rs.72 crore for State Bank employees.
The price of the rights had been Rs.60 per share. After SBI Capital Markets, Manila-based
Asian Development bank will pick up 15 per cent equity stake in the new stock broking
subsidiary of State Bank of India to be made operational by mid-1997. The balance 85 per
cent will be subscribed to by SBI. SBI Securities Ltd the 100 per cent stockbroking subsidiary

of SBI, has recently received the much-awaited letter of incorporation from the Registrar of
Companies. Following this, both SBI and ADB will pick up their respective shares in the new
stockbroking firm. SSL will have an equity base of Rs.50 crore. The State Bank of India has
tied up with GE Capital to float a venture in Mumbai. State Bank signed the memorandum
of understanding with GE Caps in March. State Bank will tie up with either VISA or
Mastercard or even both for the franchise network. GE Caps through this joint venture will
be imparting technology, credit card expertise and payment card mechanism. The Reserve
bank of India has directed the SBI to set up a $300 million stand-by facility for the Indian oil
corporation. State Bank of India (SBI) signed an agreement with the National Securities
Depository Ltd (NSDL) for dematerialisation of its shares. Besides, SBI has also become an
equity stake holder in NSDL to the extent of 4.76%. SBI Commercial and International Bank,
has become the country's first public sector bank to introduce optical disk (OD) facilities for
data storage.
1998 –
State Bank of India will kick-start its credit card business on July 1 by floating two joint
ventures with GE Capital. The largest financial intermediary in the country will sign the joint
venture agreement with GE Caps in the last week of January. The State Bank of India on Jan
27 kicked off its foray into the payment cards business with a joint venture agreement with
US-based financial services giant, General Electric Capital Corporation (GE Capital). State
Bank of India (SBI) on June 24 signed an exclusive agreement with the world's largest
payment system - Visa International - for payment cards in India. The agreement was signed
in Mumbai between the SBI managing director, Mr O P Sethia, and the general manager and
executive vice president (South East Asia) of Visa, Mr James G Murray.
1999 –

State Bank of India (SBI) has bagged the mandate to syndicate the $ 120 million loan for the
National Thermal Power Corporation (NTPC). The State Bank of India (SBI) proposes to take
up the life insurance and general insurance business once the sector is opened up. State
Bank of India has tied up with its associate banks to market the SBI Card. The SBI has tied up
with State Bank of Patiala in Chandigarh and State Bank of Mysore in Bangalore to help
market its credit card. SBI proposes to introduce a value-added service for cardholders
whereby the credit card can also be used as an ATM card. The State Bank of India will tie up
with international investment banker Credit SuisseFirst Boston and three domestic public
sector banks to form a gold assaying venture. The State Bank of India (SBI) has decided to
take over SBI Home Finance (SBIHF), with its assets and liabilities. Having the largest stake,
SBI has been weighing various options for bailing out the joint venture company which has
slipped into huge losses. The State Bank of India (SBI) has signed up with Central Depository
Services (I) (CDSIL) for the dematerialisation of its shares. SBI shares have already been
admitted as security with National Securities Depository (NSDL). Besides, SBI also has a
stake (Rs 10 cr) in the equity of CSDL. According to an agreement entered into with the
development bank, State Bank of India (SBI) was to reduce its stake in its investment
banking subsidiary to below 50 per cent by March 31. The State Bank of India (SBI) has
entered into an agreement with Moody's Investor Service and Icra, under which SBI will pick
up Moody's 11 per cent stake in Icra in case the global rating firm wants to get out of its
investment in India. State Bank of India (SBI) has taken the lead in `convenience banking' by
becoming the first public sector bank to offer its `savings bank' account holders the benefits
of fixed deposits (higher interest rates) and current accounts (overdraft facility).

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. SBI is also forming a subsidiary - SBI Gold and Precious Metals Pvt. Ltd. with 50 per cent
equity participation. Mr. Vepa Kamesam, Deputy Managing Director, has been appointed as
Managing Director with effect from 1st June. SBI board cleared the setting up of a separate
subsidiary for information technology. KC Raut has recently taken charge as general
manager at State Bank of India, Chennai. The Bank has become the first public sector bank
to offer fixed-rate home loans. The State Bank of India has tied up with State Bank of
Mysore to launch co-branded credit cards as part its strategy to collaborate with associate
banks to expand its cardholder base. Central Depository Services (India) Ltd has signed an
agreement with State Bank of India as its Depository participant. State Bank of India and the
Exim Bank of the US have signed amemorandum of understanding, involving $500 million,
to support the small and medium-sized ndian companies to purchase US goods and
services. Mr. Suresh Kumar Mehra, Workmen Directors, ceased to be a member of the
Central Board of the bank effect from October 1, due to his retirement at the close of the
business on September 30. The Bank has launched an international credit cards for doctors,
the frist of its kind in the country, offering facilities including special discounts on medical
equipment and personal loans from GE countrywide. The State Bank of India has introduced
a new scheme to boost exports. The CRISIL has assigned a triple-A (AAA) rating to the State
Bank of India's Rs 3,000 crore bonds programme. The Bank have decided to close down its
fully-owned foreign subsidiary - SBI European Bank Ltd., in London. Mr. S. Mukerji,
Managing Director, of the bank retired from the bank on 30th of November. State Bank of
India Mutual Fund has launched the Magnum Gilt Fund, dedicated to investing in
government securities.
2001 –
The Bank has signed an MoU with Cardif S.A. for the bank's life insurance business. The Bank
has introduced Voluntary Retirement Scheme for eligible employees, open from the 15th
January 2001 to the 31st January 2001. The Bank has incorporated a subsidiary `SBI Life
Insurance Company Ltd.,' for doing life insurance business. The Bank will install 10 more
Automated Teller Machines in the north-eastern region in addition to the one already
commissioned at Guwahati. State Bank of India launched three more ATMs i n Bangalore.
Mr Y Radhakrishnan has been promoted to the post of managing director of State Bank of
India. SBI Cards has set up a special insurance cell in Ahmedabad for facilitating the claims
of SBI cardholders affected by the tragic earthquake in Gujarat. SBI has assigned the Delhi-
based HCL Com Net to provide it ATM teller inter-connectivity which could involve
investments running into several hundred crores. SBI chief general manager Madhav M
Mehta, who is currently the operational head in Gujarat, has been transferred to its
corporate office in Mumbai as chief general manager (CGM). July 3- Announces the launch

of the SBI International card and the SBI Global Card for global travelers in India. SBI
International cards and SBI Gold Cards would be accepted at over 20 million Visa outlets
worldwide and one lakh outlets in India. State Bank of India has embarked upon an
ambitious Rs 800-crore technology upgradation programme. The bank has appointed

KPMG, a consultant in computer technology, to provide inter connectivity networking to the
computerised branches and also to the ATMs across the country enabling its customers to
transact any kind of business from anywhere State Bank of India was presented the award
for JD Power Asia PacificÂ’s 2001 India Sales Satisfaction Index (SSI) and Consumer Financing
Satisfaction (CFS) State Bank of India has added three more ATMs to its network. The new ATMs
were installed at SBI's Andheri (west),Goregaon (east),and Borivili (east) branches on
September 22 State Bank Of India (SBI) has informed BSE that Shri K.J.Udeshi, ED, RBI has
been nominated on the Central Board of the Bank as nominee of RBI in place of
Dr.Y.V.Reddy, w.e.f. September 22, 2001 under Sec.19(f) of SBI Act. State Bank of India has
slashed the interest rate on home loans by 0.5 per cent to 12 per cent, effective from
September 15. IN A significant move, the State Bank of India has decided to distance itself
from its subsidiaries - SBI Capital Markets, SBI Gilts, SBI AMC and State Bank of Credit and
Commerce International. They will have the autonomy, independent chairmen and external
executives at the senior management level at market-related salaries. At present, the SBI
chairman is the ex-officio chairperson of all the subsidiaries, including the associate banks.
The new scheme will be aimed only at the award staff, a category that was included with
officers in the January 2001 voluntary retirement scheme. SBI Cards on July 3, announced
the launch of the SBI International card and the SBI Global Card for global travelers in India.
- VRS implemented in which around 21,000 employees, including officers, were permitted to
retire - The Bank has crossed another milestone by making a successful foray into insurance.
SBI is the only Bank to have been permitted a 74% stake in the insurance business. The
Bank's insurance subsidiary, SBI Life Insurance Company, a joint venture with the Bank
holding 74% and Cardif S.A., the Joint venture partner, the balance 26%, was incorporated

to undertake life insurance and pension business. Cardif S.A. is a wholly-owned subsidiary of
BNP-Paribas, which is the largest bank in France and one of the top ten banks in the world.
Cardif S.A. is the largest bancassurance company in France. - The bank's efforts to establish
a world -class credit information bureau in India culminated in the successful setting up of
the Credit Information Bureau (India) Ltd., a joint venture of the Bank with HDFC Ltd., Dun
and Bradstreet Information Services India Pvt. Ltd. and Trans Union International Inc.
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. -E K Thakur resigns from Directorship
of SBI. -TCS bags order of Rs 500 crore from SBI. -SBI has informed that the following
change in Directors. 1. Shri A C Kalita, Director on the Bank's Central Board ceased to be a
Director on the Board wef May 13, 2002 on expiry of his term on May 12, 2002.2. Shri Y
Radhakrishnan Managing Director & GE (CB) has relinquished office of the Managing
Director as on June 30, 2002 and ceased to be Director on the Board wef July 01, 2002. -
State Bank of India has informed BSE that Mr D C Gupta IAS Secretary (Financial Sector),
Ministry of Finance, Department of Economic Affairs, New Delhi has been nominated as
Director on the Board of State Bank of India with effect from July 17, 2002 vice Mr S K
Purkayastha. -State Bank of India has informed BSE that Mr S Govindarajan, Managing
Director & GE (NB) has relinquished office of the Managing Director as on July 31, 2002 and
ceased to be Director on the Board w e f August 01, 2002.Further Mr P R Khanna, Director
on the Bank's Central Board ceased to be a Director on the Board w e f August 20, 2002
consequent upon his resignation. -State Bank of India has informed BSE that the Bank has

decided to close SBI Securities Ltd (SBISL), a subsidiary of the Bank, following a Directive in
this regard from the RBI. -State Bank of India has informed that the Central Government
appointed Mr A K Batra, Deputy Managing Director, State Bank of India as Managing
Director, State Bank of India for the period from the date of his taking charge and upto
August 31, 2003. Also, Mr P N Venkatachalam, Deputy Managing Director, State Bank of
India, has been appointed as Managing Director, State Bank of India for the period from the
date of his taking charge and upto March 31, 2004. -State Bank Of India has informed that
Shri Prithvi Raj Khanna and Shri Kumar Bery have been duly elected as Directors under
Section 19(c) of SBI Act at the General Meeting of the -State Bank of India has informed that
it has appointed Mr Ananta Chandra Kalita, as a Director on the Central Board of the Bank
from amongst the employees of the Bank, who are workmen, for a period not exceeding six
months commencing from October 03, 2002 or until his successor is appointed or till he
ceases to be workmen employee of State Bank of India, or until further orders, whichever
event occurs earlier.shareholders of the bank held on September 09, 2002. -State Bank of
India has informed BSE that Shri Janki Ballabh, Chairman has relinquished office of Chairman
at the close of business hours on his attaining superannuation on October 31, 2002. -State
Bank of India has informed that Smt Vineeta Rai, Secretary (Banking & Insurance), Ministry
of Finance and Company Affairs, Department of Economic Affairs (Banking Division), New
Delhi has been nominated as Director of the Board with effect from October 30, 2002. -State
Bank of India has informed that the Central Government, after consultation with the Reserve
Bank of India, appointed Shri A K Purwar, Deputy Managing Director, State Bank as
Chairman, State Bank of India from the date of his taking charge of the post and upto May
31, 2003 i.e. date of his superannuation or until further orders whichever is earlier. Shri A K
Purwar assumed the charge of Chairman, State Bank of India, on November 13, 2002.
2003

State Bank of India (SBI) and Maruti Udyog Ltd have announced a joint initiative aimed at
making car finance affordable to middle and lower middle class customers. Customers will
now have transparent car finance involving no hidden charges and pre-closure penalties,
and also get the dealers' margins, Mr S.K. Bhattacharya, Chief General Manager, SBI, told
newspersons. "It will help both the bank and Maruti to aggressively tap the Andhra Pradesh
market," he said. SBI offers finance facility even for lifetime tax, insurance and accessories of
the vehicle. - State Bank of India has informed that the Bank has appointed Shri Ananta
Chandra Kalita, Head Assistant, State Bank of India as a Director on the Central Board of the
Bank amongst the employees of the Bank, who are workmen for a period of 3 years
commencing from July 15, 2003 or until he ceases to be a workmen employee of the Bank
or until further orders, whichever is earlier provided that he shall not hold the office
continously for a period exceeding six year. - SBI group's total profit identified at Rs 3,354 cr
in '02 - Mr. D C Gupta nominated as Director on the Board of SBI - SBI introduces IT
upgradation plan with KPMG help - SBI Cards and Payment Services Private Ltd, the credit
card subsidiary of the State Bank of India, introduces two new schemes recently- SBI
Advantage Card to the bank's fixed deposit customers and SBI International Card for its
home loan borrowers - Launches a new credit appraisal system targeting the small and
medium enterprises (SME) for loans up to Rs 25 lakh - SBI selects TCS to execute trade
finance solution - SBI and ICICI Bank among the top 100 banks in Asia in 2001 as per the
study by Asian Banker Journal - Introduces SBI Cash Plus, its Maestro Debit Card that allows
customers to access their deposit accounts from ATMs and merchant establishments 2003 -
Promotes three Chief General Managers (CGM) to the posts of Deputy Managing Directors
(DMDs). They are: A D Kalmankar, CGM in charge of Staff College of Hyderabad, A K Das,
CGM, Hyderabad; and R K Sinha, CGM, Chandigarh - SBI appoints Mr. S K Bhattacharya as
the new Chief General Manager for Hyderabad circle - Increases its equity stake in Discount
and Finance House of India Ltd (DFHIL) to 51% - Ties up with Maruti Udyog Ltd. (MUL) for
car finance - Receives permission from Insurance Regulatory and Development Authority

(IRDA) to sell healthcare products to individuals - Increases its Equity Stake in DFHIL to
55.30% - Starts new 'Plus schemes' loans such as Justice Plus intended for the judges and
court employees, Police Plus for the police personnel, Teacher Plus for the teaching
community and Doctor Plus for the medical practitioners - Receives RBI licence to set up
offshore banking units (OBUs) in special economic zones (SEZs) - Launches SBI Bangalore
card meant for a broad-based target audience in the 25 plus age group ranging from
upwardly mobile professionals and middle class segments - SBI unveils Hyderabad card, an
exclusive initiative for the citizens of Hyderabad - Ananta Chandra Kalita ceases to be a
Director of SBI - Christens the tieup with Maruti Udyog Ltd. as SBI-Maruti Finance - Orders
For 1,500 ATMs With NCR Corporation - Orange, the cellular service operator of the Hutch
group for the Mumbai circle, ties up with State Bank of India for prepaid card refill options -
Ropes in US-based consultant McKinsey & Co to undertake Business Process Re-
engineering (BPR) exercise for the bank - Launches charter for Small Scale Industries (SSIs) -
NPA (Non Performing Assets) slashed to 4.5 pc, writes off Rs 4,000 crore worth of assets -
Forays into stock market - Stock price crosses the Rs 400 mark for the first time since listing
on BSE - Mr. A K Batra, Managing Director & Group Executive (Corporate Banking) of the
Bank ceases to be a Director on the Board with effect from July 8, 2003 - Plans a new
scheme to attract Resurgent India Bonds (RIB) - N S Sisodia, Secretary (Banking &
Insurance), Ministry of Finance and Company Affairs, Department of Economic Affairs

(Banking Division), has been nominated as a Director on the Board of State Bank of India
w.e.f. July 11, 2003 - Mr. Ananta Chandra Kalita, Head Assistant, State Bank of India,
appointed as a Director on the Central Board of the Bank amongst the employees of the
Bank - Inks two important agreements with its employees' unions and officers' associations.
According to the contract SBI's staff will be having no rights to interfere in bank's
computerisation plans - SBI, AirTel launch mobility service at Rs 299 - Central government
nominates Mr. Arun Singh as a director on the board of the bank wef July 25, 2003 for a
period of three years. - State Bank of India along with ANZ Investment Bank have

consummated 5 year syndicate loan facility of $100 million to Indian Petrochemicals
Corporation (IPCL) - Opens cheque clearing cente at Kolkata - Inks pact with Mahindra &
Mahindra (M&M) for co-branded tractor scheme SBI-Mahindra Tractor Plus - Joins hands
with Tractors and Farm Equipment Ltd (TAFE) for tractor loans - Launches insurance scheme
in Kerala - Unveils new retail bank loan product Credit Khazana, which targets the bank's
housing loan account holders - Unveils online ticket reservation system 'e-Rail' - Reserve
Bank of India nominates Dr Rakesh Mohan, Deputy Governor, RBI, on the Central Board of
the bank - Appoints Mr C. Narasimhan as the Chief General Manager of the SBI's Kerala
Circle -Unveils Credit Khazana, retail bank loan product, to target the bank's housing loan
account holders - MRO-TEK Ltd has secured State Bank of India's order of Rs 15-crore to
provide networking solutions of 2Mbps and 64 Kbps high-end leased line modems for SBI
to connect more than 800 branches across the country. -SBI joins hands with LIC to dentify
long-term investment proposals for LIC -Tied with bajaj Auto to finance its two wheelers. -
SBI granted Rs 125-cr loan to Nethaji Apparel park to set up units and buy machinery for
the first batch of 54 garment plants in the 65-acre special apparel park. -The bank has tied
up with TVS motor company to finance two wheeler loans -Tied up with apollo hospital
enterprise to finance for the hospital treatement. -The company launched mobile pre-paid
cards recharge facility at its ATM's -Tied up with ICICI Bank and HDFC for sharing ATM
networks 2003-Bank has entered into MOU with both ICICI Bank and HDFC Bank for sharing
Bank's ATM Network with them on bilateral terms. -The Central Government after
consultation with the Reserve Bank of India, appointed Shri Chandan Bhattacharya, Deputy
Managing Director State Bank Of India as Managing Director State Bank Of India for the
period from December 17, 2003 to January 31, 2005. -The State Bank of India has
announced a special package to BSNL employees by allowing concessional interest rates for
different types of loans to be availed by the BSNL staff.
2004 –

Former KCCI President nominated to SBI Bangalore Local Board -State Bank Of India has
informed that Reserve Bank of India has nominated Shri A V Sardesai, Executive Director,
Reserve Bank of India on the Central Board of State Bank of India vice Dr. Rakesh Mohan. -
SBI sets up ATM counter in Ernakulam -Bahrain Monetary Agency (BMA) grants in-principle
licence to Statte Bank of India (SBI) -SBI sets up India's first drive-in ATM in Hyderabad -
State Bank of India has entered into an alliance with HDFC Bank for sharing ATM networks
to be operationalised from February 3, this year. 2004 -SBI unveils new branch in Manjeri -
Bank awarded special prize for lending to self help group run by women -SBI unveils
floating ATM -State Bank of India appointed six new Deputy Managing Directors on
February 11, 2004. The new DMDs are: Mr T.S. Bhattacharya, CGM, Product Development
and Marketing, Mr M.M.Lateef, Managing Director, SBI Gilts, Mr Yogesh Agarwal, CGM,
Chandigarh, Mr Krishnamurthy, CGM, Madras LHO and Mr R.Ramanathan, CGM, Technology
and Mr Vijay Anand, CGM, Corporate Account group. These top level appointments follow
the appointment of the new Managing Director for the bank, Mr Chandan Bhattacharya, in
December. -GAIL ties up SBI for e-banking system -SBI join hands with Visa for travel card -
SBI enters into ATM sharing agreements with UTI Bank & HDFC Bank -Signs a
Memorandum of Understanding (MoU) under which the bank will provide term loans to
farmers for purchasing capital inputs from Jain Irrigation Systems Ltd (JISL) -Join hands with
Siemens for financing the medical equipments sold by Siemens -Joins hands with VST Tillers
to launch SBI-VST Shakti, a new loan scheme for farm mechanisation programme -Unveils
Vishwa Yatra foreign travel card, a prepaid card which offers the traveller a convenient and
secure way to carry cash -Ties up with Same Deutz-Fahr India for tractor financing -In ally
with Sikkim govt to beef up SMEs -The government has chosen State Bank of India (SBI) for
channelising government credit to other countries which runs into billions of dollar -SBI
opens MICR cheque processing center -Signs MoU with HMT Ltd. for financing their tractors
-State Bank of India deploys Flexcube as core banking solution at Frankfurt -Mr Ashok K.

Kini appointed as new Managing Director of State Bank of India with effect from April 1,
2004 to December 31,
2005 –
SBI unveils Foreign Travel card in Orissa -ICICI Bank, SBI, LIC in pact for Rs 20,000-cr projects
-Reliance Info in ATM pact with SBI -State Bank of India, Bangalore Circle, has announced its
tie-up with New India Assurance Company Ltd (NIAC), for distribution of NIAC's general
insurance products in Karnataka - SBI unveils new credit card in Ahmedabad -State Bank of
India joined the billion dollar club -THE State Bank of India opened its 236th branch in the
State at Tripunithura on June 16 -SBI inaugurates first Internet shoppe in Kochi -State Bank
of India has opened a fully computerised branch at Karunagappally in Kollam district -L&T-
John Deere Private Ltd has signed a memorandum of understanding (MoU) with State Bank
of India for tractor finance -Buys 10% stake in Multi Commodity Exchange of India Ltd.
(MCDEX) for Rs 2.1 crore -SBI join hands with Hero Honda to unveil co-branded credit card
-State Bank of India launched its first mobile ATM for increasing the banking convenience of
its customers -State Bank of India has signed a Memorandum Of Understanding (MOU) with
the Societe Generale Asset Management of France (SGAM) for inducting Societe Generale
Asset Management as a stake holding partner for SBI's mutual fund arm, SBI Fund
Management Private Ltd (SBIFMPL) -State Bank of India, (SBI) with a view to expand the
ambit of its educational loan schemes, has unveiled a unique educational loan scheme,
christened "Nursing Plus," for the nursing students of the country -SBI forges alliance with
Hero Honda -SBI offers new scheme`School Plus' for schools -SBI Card has launched 'Instant
Card' offering customers in need of instant credit opportunity. With this, the customers will
get an opportunity to get ready to use credit card within a few hours of filing in their
application form -SBI selects Finacle for international ops -SBI enters ATM tie up with
Andhra Bank -SBI join hands with LIC for funding infrastructure projects -Tata Motors on
December 7, 2004, signs an MoU with State Bank of India (SBI) -SBI partners with Eicher

Motors on December 27, 2004 2005 -Raj Travels joins hands with SBI for travel loans -SBI
opens branch at Vadakara -SBI join hands with Apollo Health to offer loans -SBI rolls out
new loan scheme -SBI opens first branch in Lakshadweep island of Kavaratti -SBI enters into
agreement for bilateral sharing of ATMs with PNB on May 10, 2005 -SBI signs MOU with
Corporation Bank for ATM sharing -State Bank of India and 8 associate banks have entered
into an agreement with Bharat Petroleum Corporation Ltd (BPCL) for enhancing card usage
at fuel stations -SBI launches new mortgage loan scheme for traders -SBI launches SBI card
in Madurai -SBI inaugurates RBO in Thrissur -SBI signed a memorandum of understanding
with Small Industries Development Bank of India for co-financing small and medium
enterprises in Andhra Pradesh, Tamil Nadu, Uttar Pradesh, Jammu & Kashmir, Jharkhand,
Delhi and Bihar -State Bank of India and Crisil have signed a memorandum of
understanding under which latter will assign ratings to small-scale industries that are
borrowers of SBI -NSIC join hands with SBI to offer credit to SSI
2006
SBI teams up with Nihilent to unveil feedback system -Bhatt to become SBI's new MD -State
Bank of India (SBI) has informed that Shri. Yogesh Agarwal has been appointed as Managing
Director on the Board of the Bank with effect from October 10, 2006 to the June 30, 2010
2007 -State Bank of India (SBI) has appointed Shri. S K Bhattacharya as Managing Director
on the Board of the Bank with effect from October 08, 2007 to the October 31, 2010, as per
the Notification dated October 08, 2007, by the Government of India. - The State Bank of
India (SBI) has become the first foreign bank to set up a branch in the Israel's diamond
exchange. Besides diamonds, they also see huge potential in telecommunications, hi-tech,
chemicals, textiles, agriculture and water management, food processing, pharma and health
care.

2008
State Bank of India (SBI) has informed that the Government of India in pursuance of clause
(e) of Section 19 of the State Bank of India Act, 1955 (23 of 1955) has nominated Shri. Arun
Ramanathan, Secretary, Ministry of Finance, Department of Financial Services, New Delhi as
a Director on the Central Board of State Bank of India with effect from January 18, 2008, vice
Shri. Vinod Rai. -State Bank of India (SBI) has informed that the Central Government, in
consultation with the Reserve Bank of India and in pursuance of clause (d) of Section 19 of
the State Bank of India Act, 1955 (23 of 1955), has nominated Dr. (Mrs.) Vasantha Bharucha
as a part-time non-official Director on the Central Board of State Bank of India for a period
of three years with effect from February 25, 2008, vice Shri Piyush Goel. - State Bank of India
(SBI) has informed that the Central Government, in consultation with the Reserve Bank of
India and in pursuance of clause (d) of Section 19 of the State Bank of India Act, 1955 (23 of
1955), has nominated Dr. Rajiv Kumar as part-time non-official director on the Central Board
of Directors of State Bank of India for a period of three years with effect from September 08,
2008 or until further orders, whichever is earlier. - State Bank of India (SBI) has signed a Joint
Venture Agreement with Insurance Australia Group to form a Joint Venture Company which
will be engaged in General Insurance business in India. - State Bank of India has rolled out a
micro insurance scheme 'Grameen Shakti', for its Self Help Group (SHG) members. The
product was launched on Nov 26 at the Tamil Nadu Agricultural University. The bank is
hopeful to cover at least five lakh SHG members by December 31. -The company has issued
rights in the ratio of 1:5 at a premium of Rs.1580/- Per Share. -State Bank of India Issues
Rights in the Ratio of 1:5
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. - Mr Arun Kumar Agarwal has taken over charge as General
Manager at State Bank of India, Kerala Circle. Until now, he has been General Manager at
the Lucknow Circle of the bank. Mr Agarwal is Certified Associate of Indian Institute of
Bankers and joined State Bank of India as a Probationary Officer in 1977. An expert in credit
and foreign exchange, he has held several assignments ranging from Branch Manager to
Regional Manager in the Patna and Delhi circles. He also served in the bank's foreign
department at Kolkata handling investment of the FCNB portfolio, derivatives and

correspondent relations. He has headed the Pune Module of the bank and has also served
as the Deputy General Manager and Business Head for Network-1 of the Mumbai Circle. -
State Bank of India (SBI) has signed a pact with Unique Identification Authority of India
(UIDAI) to work as a registrar for the UID registration of residents. It has become the first
bank to take up registration work for the UIDAI project. As a registrar, SBI will capture
through empanelled enrolment agencies, the biometric characters such as finger prints, iris

and so on and send the information to UIDAI. - Stata Bank of India (SBI) has come up with
an exclusive branch in Hyderabad, for their ultra high networth individual (HNIs) which is by
far is first of its kind in the country. - State Bank of India acquired State Bank of Indore. - SBI
- Joint Venture agreement with State General Reserve Fund (SGRF), Sultanate of Oman -
State Bank of India has consortium of Elavon Incorporation, USA and Visa International, USA
as its Joint Venture (JV) Partner for Merchant Acquiring Business. - State Bank of India
launched a special concessional banking scheme for the Air Force personnel. - State Bank of
India (SBI) has signed an agreement with Unique Identification Authority of India (UIDAI) in
order to work as a registrar for the UID registration of residents.
2011 –
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. - Witnessed a joint venture between the nation's largest lender,
State Bank of India and the telecom lead, Bharti Airtel with an aim to provide the banking
services amongst the unbanked population of the country. - SBI - Acquisition of SBICI Bank
- State Bank of India shifted from Varma Chambers, Fort, Mumbai to the following address
with effect from September 28, 2011.Shares & Bonds Dept., State Bank of India,Corporate
Centre,8th Floor, State Bank Bhavan, Madam Cama Road, Mumbai - 400 021Telephone nos.:
022-22740841-48 (eight lines) Fax number(s): 022-22855348. - P Choudhary has been
appointed as the new chairman of State Bank of India after getting clearance from the
government. - Experian Credit Information Company of India Private Limited, the first CICRA
licensed credit bureau in India on September 23, 2011 said it has signed a membership
agreement with State Bank of India (SBI), the largest consumer lender in India to contribute
data to Experianâ€ ™s credit bureau and enhance the effectiveness of company's range of
products and services.
2012 –

State Bank of India signed a Preliminary Non-Binding Memorandum of Understanding with
Russian Direct Investment Fund (RDIF), to facilitate advancing bilateral economic
cooperation and trade between Russia and India aimed at exploring investment
opportunities in both the countries. - India's largest public sector lender, State Bank of India
(SBI) has entered into an agreement with StarAgri Warehousing Ltd (StarAgri), India's
leading agri-services & solutions provider, for Warehousing Receipt Financing and Collateral
Management Services. - SBI launched virtual debit cards to check online fraud and promote
ecommerce - SBI, ICICI Bank leading m-banking revolution in India. With the advent of
smartphones and 3G services, the Mobile Banking (m-Banking) services have been fast
catching up with Indian customers for conducting balance inquiries, account transactions,
utility payments, and other banking activities using a mobile handset - India's largest lender
State Bank of India (SBI) has been planning to cut the processing and conversion fee for
home loans to leverage the approaching festival season when Indians usually spur buying as
businesses offer healthy discounts.
2013 –
India's leading Public Sector lender the State Bank of India (SBI) is stepping up efforts to
expand its presence in the world's second biggest economy with the lender set to launch its
second branch in China. -SBI Issue of 5 year Bonds -SBI inaugurates 2nd branch in Tianjin
and China -SBI to launch 100 branches in AP -SBI introduces smart pre-paid card for
students, blue collar workers -AMW Motors collaborates with SBI to finance sale of vehicles
-SBI launches 10 branches in Raebareli
2014 –
SBI announces 150% interim dividend -State Bank of In-dia launches new digital Online and
self-service banking solutions with support from Accenture -State Bank of India unveils 6

digital branches -SBI launches Tech Learning Centres (TLCs) for customers -State Bank of
India has splits its face value from Rs 10/- to 1/-
2015 –
State Bank of India has launched a RuPay Platinum debit card in association with National
Payment Corporation of India (NPCI) -SBI builds foundation for group CSR activities -SBI
introduces online facility for overdraft against FDs -SBI partners with Amazon -SBI entered
into a MoU with PayPal, an American online money transfer services provider firm, for
facilitating cross-border transactions - State Bank of India said it has launched SBI eforex -
SBI launched an initiative to provide doorstep services and expedite home loans application
process -State Bank of India jointly launched a cyber crime awareness campaign 2016 -SBI
opens first branch in South Korea. -SBI launches new home loan plan for executives. -SBI
cuts home loan interest rate to 9.45 pct. -Govt asks SBI to merge five associate banks. -SBI
launches mVisa. -SBI launches debit card-less instant money transfer facility. -SBI gets
deposits of Rs 83,702 cr in five daysfollowing the governments decision to demonetise the

old Rs 500 and Rs 1,000 notes, reported PTI. -SBI in talks with Microsoft to push digital
banking in rural areas. 2017 -SBI Acquired State Bank of Travancore,State Bank of Patiala ,
State Bank of Hyderabad, State Bank of Bikaner & Jaipur ,State Bank of Mysore. -SBI
acquired Bhartiya Mahila Bank (BMB). -SBI becomes lead bank for new district Kalimpong,
West Bengal. -SBI, BPCL launch co-branded credit card -SBI creates wholly-owned subsidiary
to manage real estate - SBI received Golden Peacock Award For Excellence In Corporate
Governance - State Bank of India Inaugurates the Bank of Bombay Heritage Gallery Â‘Down
Memory LaneÂ’ - SBI launches its own generic Top Level Domain with its website Â“bank.sbiÂ” -
SBI signs $274 mln agreement with German Development Bank KfW to finance affordable
housing


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A Project Work on

STATE BANK OF INDIA

DIVABA INSTITUTE OF BUSINESS ADMINISTRATION (532)

1 DIVABA INSTITUTE OF BUSINESS ADMINISTRATION (532)

This is a bonafide work done by, Student of Divaba Institute of Business

Name: - KASHYAP JIGNESHBHAI MAKWANA

Year: Feb/Mar - 2022

Stamp and Signature

2 DIVABA INSTITUTE OF BUSINESS ADMINISTRATION (532)

DIVABA INSTITUTE OF BUSINESS ADMINISTRATION (532)

SNME Campus, At- Anasan, Ta. - Dascroi,

This is a bonafide work done by, Students of Divaba Institute of Business

Year: Feb/Mar - 2022

3 DIVABA INSTITUTE OF BUSINESS ADMINISTRATION (532)

We undersigned students of Divaba Institute of Business Administration (532) hereby

Name: KASHYAP JIGNESHBHAI MAKWANA

Year: Feb/Mar - 2022

(KASHYAP JIGNESHBHAI MAKWANA)

4 DIVABA INSTITUTE OF BUSINESS ADMINISTRATION (532)

We heartily acknowledge our sincere gratitude Mr Rakeshkumar G. Chauhan, Professor,

5 DIVABA INSTITUTE OF BUSINESS ADMINISTRATION (532)

5 PURPOSE OF THE STUDY 08

6 OBJECTIVE OF THE STUDY 09

7 INTRODUCTION OF THE ORGANIZTION 10 - 11

9 STATE BANK OF INDIA 12

11 GLIMPSE OF CHAIRMAN ( 2022) 15

12 BRIEF HISTORY OF THE ORGANIZATION 17

16 IMPERIAL BANK OF INDIA 25

17 GLIMPSE OF SBI GOLDEN YEARS 26

6 DIVABA INSTITUTE OF BUSINESS ADMINISTRATION (532)

T he world of commercial banking is undergoing a deep transformations a

result of marketable instruments competing with loan sand demand

7 DIVABA INSTITUTE OF BUSINESS ADMINISTRATION (532)

➢PURPOSE OF THE STUDY:

The objective is to build sound customer

8 DIVABA INSTITUTE OF BUSINESS ADMINISTRATION (532)

✓ To study the types of benefits provided by bank services

✓ To determine the feedback on services provided by a corporation bank.

✓ To determine customers perception towards corporation bank and their

expectation form private bank.

✓ To know the most preferred fixed deposit policy.

✓ To determine reasons behind opting for a fixed deposit

9 DIVABA INSTITUTE OF BUSINESS ADMINISTRATION (532)

10 DIVABA INSTITUTE OF BUSINESS ADMINISTRATION (532)

❖OBJECTIVE OF MARKETING RESEARCH

➢Studies the facilities provide to the consumer by bank.

11 DIVABA INSTITUTE OF BUSINESS ADMINISTRATION (532)

T HE BANKING INDUSTRY Nationalized banks

such as State Bank Of India (SBI), though pygmies in the international

12 DIVABA INSTITUTE OF BUSINESS ADMINISTRATION (532)

Hemchandracharya North Gujarat University, Patan N.P College Of

13 DIVABA INSTITUTE OF BUSINESS ADMINISTRATION (532)

Privatization and Credit disbursement:

14 DIVABA INSTITUTE OF BUSINESS ADMINISTRATION (532)

STATE BANK OF INDIA ( PRESENT ) 2022

Dinesh Kumar Khara

(born 28 August 1961) is a career banker and Chairman of

15 DIVABA INSTITUTE OF BUSINESS ADMINISTRATION (532)

16 DIVABA INSTITUTE OF BUSINESS ADMINISTRATION (532)

17 DIVABA INSTITUTE OF BUSINESS ADMINISTRATION (532)

Number of locations Net income

Revenue Operating income

Number of 245,642 (March