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century, when the Bank of Calcutta, later renamed the Bank of Bengal, was established on 2 June 1806. The Bank of Bengal and two other Presidency banks, namely, the Bank of Bombay (incorporatedon 15 April 1840) and the Bank of Madras (incorporated on 1 July1843). All three Presidency banks were incorporated as joint stock companies, and were the result of the royal charters. These three banks received the exclusive right to issue paper currency in 1861with the Paper Currency Act, a right they retained until the formationof the Reserve Bank of India. The Presidency banks amalgamated on27 January 1921, and the reorganized banking entity took as its name Imperial Bank of India. The Imperial Bank of India continued to remain a joint stock company. Pursuant to the provisions of the State Bank of India Act (1955), the Reserve Bank of India, which is India's central bank, acquired a controlling interest in the Imperial Bank of India. On 30 April 1955 the Imperial Bank of India became the State Bank of India. TheGovt. of India recently acquired the Reserve Bank of India's stake in SBI so as to remove any conflict of interest because the RBI is the country's banking regulatory authority Offices of the Bank of Bengal In 1959 the Government passed the State Bank of India (SubsidiaryBanks) Act, enabling the State Bank of India to take over eight formerStateassociated banks as its subsidiaries. On Sept 13, 2008,State Bank of Saurashtra, one of its Associate Banks, merged with State Bank of India. SBI has acquired local banks in rescues. For instance, in 1985, itacquired Bank of Cochin inKerala, which had 120 branches. SBI wasthe acquirer as its affiliate, State Bank of Travancore, already had anextensive network in Kerala ASSOCIATE BANKS OF STATE BANK OF INDIA There are six associate banks that fall under SBI, and together thesesix banks constitute the State Bank Group. All use the same logo of ablue keyhole and all the associates use the "State Bank of" namefollowed by the regional headquarters' name. Originally, the thenseven banks that became the associate banks belonged toprincely
emphasizing thedevelopment of rural India.Bahrain. The first step along these linesoccurred on 13 August 2008 when State Bank of Saurashtra mergedwith State Bank of India. the SBI has extensive coverage. the government integrated these banksinto State Bank of India to expand its rural outreach. The bank has one of the largestATM networks in theregion.Dhaka.448 branches and a further 6500+ associate bank branches. GROWTH OF STATE BANK OF INDIA State Bank of India has often acted as guarantor to theIndian Government. and . Total assets of SBI and the State Bank of Indore stood atRs 998. The State Bank of Indiahas had steady growth over its history. Furthermore on 19th June 2009 the SBI boardapproved the merger of its subsidiary. withitself. following theacquisition.3% in the bank. Sydney. New York.Frankfurt. In tune with the first Five Year Plan. 1959 and May. Muscat. London and environs. Johannesburg.77% is ownedby individuals.448. Hong Kong. and the balance 1. andSingapore. agencies or offices in 32 countries. which reduced the number of state banksfrom seven to six. More than 8500 ATMs across India. and Tokyo.states until the government nationalized them between October. There has been a proposal to merge all the associate banks into SBI to create a "megabank" and streamline operations. though it was marred by the Harshad Mehta scam in 1992. The acquisition of State Bank of Indore will help SBI add 470branches to its existing network of 11. With 11. SBI holds 98. State Bank of Indiahas electronically networked all of its branches under Core BankingSystem (CBS). Osaka. 1960. Male in the Maldives. Los Angeles. It is the only Indian bank to feature in the top 100 world banks in theFortune Global 500 rating and various other rankings NTERNATIONAL PRESANCE OF SBI The bank has 92 branches. the bank has sought to expand its overseas operations by buying foreign banks. most notably during Chandra Shekhar's tenure as Prime Minister of India. State Bank of Indore. It has offshore banking units in theBahamas. who held the shares prior to its takeover by thegovernment. It has branches of the parent inColombo.119 crore as on March 2009. In recent years. Also. SBI¶s total assets will inch very close to the Rs 10-lakhcrore mark.
named State Bank of India (California). number of branches. SBI operates as INMB Bank. This bank began in 1981 asthe Indo-Nigerian Merchant Bank and received permission in 2002 tocommence retail banking. whichnow has eight branches . It hastwo subsidiaries in North America. Custodial Services. Fresno. SBI operates several foreign subsidiaries or affiliates. State Bank of India already has a branch inShanghai and plans to open one up inTianjin JOURNEY AND VISION OF SBI The State Bank of India. the country¶s oldest Bank and a premier interms of balance sheet size. 2009. General Insurance. In 1982. The Canadian subsidiary too dates to 1982and has seven branches. State Bank of India (Mauritius). In Moscow SBI owns 60% ofCommercial Bank of India.seven branches in the state of California andone in Washington DC which was recently opened on 23rdNovember. with Canara Bank owning the rest. SanDiego and Bakersfield. market capitalizationand profits is today going through a momentous phase of Change andTransformation ± the two hundred year old Public sector behemoth istoday stirring out of its Public Sector legacy and moving with anagility to give the Private and Foreign Banks a run for their money.representative offices inBhutan and Cape Town. Canoga Park. State Bank of India (California). The seven branches in the state of California arelocated in Los Angeles.Mobile Banking. to expand its Rural Banking base. Artesia. The Bank is forging ahead with cutting edge technology andinnovative new banking models. InIndonesia it owns 76% of PT Bank Indo Monex. InNigeria. AdvisoryServices. four in the greaterToronto area. Private Equity. Point of Sale Merchant Acquisition. The bank is entering into many new businesses with strategic tie ups ± Pension Funds. which has branches throughout the country. structured products etc ± each one of these initiatives havinga huge potential for growth.and State Bank of India (Canada). It now has five branches in Nigeria.looking at the vast . the bank established itsCalifornia subsidiary. and three in British Columbia. San Jose. In Nepal SBI owns 50% of Nepal SBI Bank. In 1990 itestablished an offshore bank.
The CNN IBN. SBILife and SBI Cards . In a recently concluded mass internalcommunication programme termed µParivartan¶ the Bank rolled outover 3300 two day workshops across the country and covered over130. andhas awarded the . the State Bank of India is undertaking. The Bank is changing outdated front and back end processes tomodern customer friendly processes to help improve the totalcustomer experience. and other electronicchannels such as Internet banking. on whole sale bankingcapabilities to provide India¶s growing mid / large Corporate with acomplete array of products and services. It has also 7 Subsidiaries in India ± SBICapital Markets. It is also focusing at the top end of the market. mobile banking. debit cards. Network 18 recognized this momentoustransformation journey. attitudes and take all employees together on this excitingroad to Transformation.today it offers the largest banking network to the Indian customer. Theworkshops fired the imagination of the employees with some otherbanks in India as well as other Public Sector Organizations seeking toemulate the programme. With about 8500 of its own 10000 branches andanother 5100 branches of its Associate Banks already networked.untapped potential in the hinterland and proposesto cover 100. SBI DFHI. It presently has 82 foreign offices in 32countries across the globe.000 villages in the next two years. The bank is also looking at opportunities to grow in size in India aswell as Internationally. etc. Some of the trainingprogrammes are attended by bankers from banks in other countries. the Bank is also attempting to change oldmindsets.forming a formidable group in the IndianBanking scenario. the Bank is the largest provider ofinfrastructure debt and the largest arranger of external commercial borrowings in the country. It is in the process of raising capital for its growthand also consolidating its various holdings. SBICAP Securities. With four national level Apex Training Colleges and 54 learningCentres spread all over the country the Bank is continuously engagedin skill enhancement of its employees. It is the only Indian bank to feature in theFortune 500 list.000 employees in a period of 100 days using about 400 Trainers. SBI Factors. Today.The Bank is also in the process of providing complete paymentsolution to its clientele with its over 8500 ATMs. Throughout all this change. It is consolidating its globaltreasury operations and entering into structured products andderivative instruments.to drive home the message of Change and inclusiveness.
Their evolution was. Mr. the three presidency banks cameinto existence either as a result of the compulsions of imperialfinance or by the felt needs of local European commerce and werenot imposed from outside in an arbitrary manner to moderniseIndia's economy. however. to itsChairman. viz. and wasinfluenced by changes occurring in the structure of both the localtrading environment and those in the relations of the Indianeconomy to the economy of Europe and the global economicframework. ESTABLISHMENT The establishment of the Bank of Bengal marked the advent of limited liability. the Banks of Bombay and Madras. It meant anaccretion to the capital of the banks. a capital on which theproprietors did not have to pay any interest. the decision to allow the Bank of Bengalto issue notes. Primarily Anglo-Indian creations. These three banks remained at theapex of modern banking in India till their amalgamation as theImperial Bank of India on 27 January 1921. This right of noteissue was very valuable not only for the Bank of Bengal but also itstwo siblings. joint-stock banking in India. O. Bhatt in January 2008 EVOLUTION OF SBI The origin of the State Bank of India goes back to the first decade of the nineteenth century with the establishment of the Bank ofCalcutta in Calcutta on 2 June 1806. P.prestigious Indian of the Year ± Business. shaped by ideasculled from similar developments in Europe and England. it was the first joint-stock bankof British India sponsored by the Government of Bengal. which would be accepted for payment of publicrevenues within a restricted geographical area. The concept of depositbanking was also an innovation because the practice of acceptingmoney for safekeeping (and in some cases. So was the associatedinnovation in banking. A unique institution. Three years later the bankreceived its charter and was re-designed as the Bank of Bengal (2January 1809). even investment onbehalf of the clients) by the indigenous bankers had not spread as . The Bankof Bombay (15 April 1840) and the Bank of Madras (1 July 1843)followed the Bank of Bengal.
The three banks were governed by royal charters. includingtea. which wasin turn endorsed to the bank.as far as the government was concerned. salt woollens. mule twist and silk goods were also granted but suchfinance by way of cash credits gained momentum only from thethird decade of the nineteenth century. cottonpiece goods. commonly called Company's Paper. one lakh and the period ofaccommodation confined to three months only. Indians were the principal borrowers against deposit of Company'spaper. land or other real property was. indigo.ageneral habit in most parts of India. Loans were restricted to Rs. ASSOCIATE BANKSOF SBI AND IT. andespecially upto the time that the three presidency banks had a rightof note issue. which began to be financed later. But the main function of the three banks.four-fifth of which were privately subscribed and the rest owned bythe provincial government. bank notes and government balances made up the bulkof the investible resources of the banks. BUSINESS The business of the banks was initially confined to discounting of bills of exchange or other negotiable private securities. . or goods 'not of a perishable nature'and no interest could be charged beyond a rate of twelve per cent. The members of the board of directors. were eitherpledged or hypothecated to the bank. Demand promissory noteswere signed by the borrower in favour of the guarantor. was to help the latter raiseloans from time to time and also provide a degree of stability to theprices of government securities. however. invariably civilservants. treasure. were mostly proprietarydirectors representing the large European managing agency housesin India.which managed the affairs of each bank. sugar and jute. But. for a long time. Lending against shares of the banks oron the mortgage of houses.Loans against goods like opium. Each charter provided for a share capital.S BUSINESS State Bank of India has the following six Associate Banks (ABs) with controlling interest ranging from 75% to 100%. The security for suchloans was public securities.forbidden. All commodities. The rest were government nominees. which wererevised from time to time. jewels. while the business of discounts on private as well as salarybills was almost the exclusive monopoly of individuals Europeansand their partnership firms. one of whom was elected as the president of the board. keeping cashaccounts and receiving deposits and issuing and circulating cashnotes. plate.bullion. cotton.
State Bank of Hyderabad (SBH) 3. Deposits and advancesgrew by 19% and 22%.69 crores. during the year.2277. Products Personal Banking SBI Term Deposits SBI Loan For Pensioners SBI Recurring Deposits Loan Against Mortgage Of Property SBI Housing Loan Loan Against Shares & Debentures SBI Car Loan Rent Plus Scheme SBI Educational Loan Medi-Plus Scheme And Services y y y y y Other Services Agriculture/Rural Banking NRI Services ATM Services Demat Services Corporate Banking Internet Banking Mobile Banking International Banking y y y y y y y y .61% as on 31st March 2008. respectively. State Bank of Patiala (SBP) 6. State Bank of Mysore (SBM) 5.State Bank of Travancore (SBT) The six ABs have a combined network of 4502 branches in Indiawhich are fully computerized and 2410 ATMs networked with SBIATMs. The combined net profit of these banks increased by 12% over theprevious year to reach Rs. State Bank of Indore (SBIr) 4.1. The combinedNet NPA ratio of all ABs was at 0. 2. providing value added services to clientele.State Bank of Bikaner and Jaipur (SBBJ) .
State Bank of Hyderabad. etc. credit cards and insurance. which includes the ATMs of State Bank of India as well as the Associate Banks ± State Bank of Bikaner & Jaipur. it offers various services including merchant banking services. Subsidiaries The State Bank Group includes a network of eight banking subsidiaries and several non-banking subsidiaries.y y y y y y y Safe Deposit Locker RBIEFT E-Pay E-Rail SBI Vishwa Yatra Foreign Travel Card Broking Services Gift Cheques ATM Services SBI provides easy access to money to its customers through more than 8500 ATMs in India. The Bank also facilitates the free transaction of money at the ATMs of State Bank Group. The eight banking subsidiaries are: State Bank of Bikaner and Jaipur (SBBJ) State Bank of Hyderabad (SBH) State Bank of India (SBI) State Bank of Indore (SBIR) State Bank of Mysore (SBM) State Bank of Patiala (SBP) State Bank of Saurashtra (SBS) State Bank of Travancore (SBT) y y y y y y y y . You may also transact money through SBI Commercial and International Bank Ltd by using the State Bank ATMcum-Debit (Cash Plus) card. primary dealership in government securities. fund management. factoring services. State Bank of Indore. Through the establishments.