SBI and Associate Banks

CONTENT

Associate
Introduction History
Bank

Board of
Function Role of SBI
Directors

Major News
INTRODUCTION

On 1st April 2017, SBI merged with 5 of its associate banks and one other bank. This brought
into SBI the 50 largest banks in the world. These associate banks included State Bank of
Jaipur, Bikaner, Mysore, Travancore, Hyderabad, and Patiala. The sixth bank was the
Bharatiya Mahila Bank.State bank of India is a nationalized bank owned by the government
of India. Since its merger in 2017, SBI has become the largest bank in India. There are five
associate banks of SBI and the sixth one is Bharatiya Mahila Bank. The evolution of SBI in
recent years has been noticeable. It is one of the oldest banks operating in India.
ASSOCIATE BANK
There are seven other associate banks that fall under SBI.
They all use the “State Bank of” name followed by the
regional headquarters’ name:
 State Bank of Bikaner and Jaipur (SBBJ)
 State Bank of Hyderabad (SBH)
 State Bank of Mysore (SBM)
 State Bank of Patiala (SBP)
 State Bank of Travancore (SBT)
 State Bank of Saurashtra (SBS)
HISTORY

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.
 Under Section of SBI Act
Sl.No Name Designation
1955
1. Shri Dinesh Kumar Khara Chairman 19(a)
2. Shri C.S. Setty Managing Director 19 (b)
3. Shri Swaminathan J. Managing Director 19 (b)
4. Shri Ashwini Kumar Tewari Managing Director 19 (b)
5. Shri Alok Kumar Choudhary Managing Director 19 (b)
6. Shri B. Venugopal Director 19 (c)
7.
8.
Dr Ganesh Natarajan
CA Shri Ketan S. Vikamsey
Director
Director
19 (c)
19 (c)
BOARD OF
9. Shri Mrugank M Paranjape Director 19 (c) DIRECTORS
10. CA Shri Sanjeev Maheshwari Director 19 (d)
11. CA Shri Prafulla P Chhajed Director 19 (d)
12. Shri Sanjay Malhotra, IAS Director 19 (e)
13. Shri Anil Kumar Sharma Director 19 (f)
FUNCTIONS
There are many functions that SBI beyond the above-mentioned services. These services are rendered by SBI under
section 33A. These are:
 It accepts the deposits from the people in the form of savings, fixed, current, and recurring deposit accounts.
 Based on the security of stocks, securities, SBI gives advances and loans to the public.
 SBI gives the facility of drawings, accepting, and buying and selling the bills of exchange. It also issues and
circulates the letters of credit.
 SBI also invests in funds or any special kind of security. The bank also acts as a trustee, executor, or otherwise,
based on the circumstances.
 It is also entrusted with selling and purchasing of either movable or immovable properties that come in the bank.
 SBI also functions for selling and buying of gold and silver.
 For the general public, it helps in the opening of public provident fund accounts.
 It underwrites any issue related to the securities or the debentures that are authorized.
 It provides the facility of shipping finance as well as various factoring services. There are many leading bank
schemes in which SBI participates
ROLE OF SBI

SBI gives the facility of drawings, accepting, and buying and selling the bills of exchange. It
also issues and circulates the letters of credit. SBI also invests in funds or any special kind of
security. The bank also acts as a trustee, executor, or otherwise, based on the circumstances.
MAJOR NEWS RELATED
TO SBI
 Article 1

State Bank of India chairman Rajnish Kumar on

Tuesday said that interest rate cuts had not led to an
increase in investment, despite the banks passing on
the rate cuts to the customers.Speaking at the 47th
National Management Convention of the All India
Management Association (AIMA), Kumar said that
credit growth had been slow this year as capex was
not happening at the usual pace.
 Article 2

The country's largest lender, State Bank of India (SBI), raised the Benchmark Prime Lending
Rate (BPLR) by 70 basis points (or 0.7 per cent) to 13.45 per cent on Wednesday. The
announcement would make loan repayment linked to BPLR costlier. The current BPLR rate is
12.75 per cent. It was revised last in June. "Benchmark Prime Lending Rate (BPLR) revised
as 13.45 per cent per annum with effect from September 15, 2022," the SBI posted on its
website.The bank has also raised the base rate by similar basis points to 8.7 per cent, effective
Thursday. The EMI amount for the borrowers who have taken loans at the base rate would go
up. These are the old benchmarks on which banks used to disburse loans. Now most of the
banks provide loans on the External Benchmark Based Lending Rate (EBLR) or the Repo-
Linked Lending Rate (RLLR). The bank revises both the BPLR and the base rate on a
quarterly basis. The lending rate revision by the SBI is likely to be followed by other banks in
the days to come. The increase in the benchmark lending rates comes weeks ahead of the
Reserve Bank of India's (RBI) monetary policy meeting, which is again expected to hike rates
to tame inflation. According to the schedule, the next three-day monetary policy meeting will
be held from September 28 to September 30.
CONCLUSION

The State Bank of India has made

significant strides in the right direction. It
has made remarkable progress in
expanding banking facilities in rural and
semi-urban areas, as well as providing
financial assistance to agriculture,
cooperative institutions, and small-scale
industries.
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