State Bank of India

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State Bank of India
Traded as NSESBIN
BSE SENSEX Constituent
CNX Nifty Constituent
Industry Banking, financial services
Founded 2 June 1806, Bank of Calcutta
27 January 1921, Imperial Bank of India
1 July 1955, State Bank of India
2 June 1956,[1] nationalization
Headquarters Mumbai, Maharashtra, India
Area served
Key people

Arundhati Bhattacharya

Dinesh Kumar Khara
Products Consumer banking, corporate banking, finance and insurance, investment banking, mortgage loans, private banking, private equity, savings, securities, asset management, wealth management, credit cards,
Revenue Increase 273,460.50 crore (US$42 billion) (2016[2]
Increase 43,258 crore (US$6.7 billion)(2016)[2]
Profit Decrease 9,950.65 crore (US$1.5 billion)(2016)[2]
Total assets Increase 2,259,063.03 crore (US$350 billion)(2016)[2]
Total equity Increase 144,274.65 (US$2,200) (2016)[2]
Number of employees
207,739 (2016)[2]
Capital ratio 13.12% (2016)[2]

State Bank of India (SBI) is an Indian multinational, public sector banking and financial services company. It is a government-owned corporation with its headquarters in Mumbai, Maharashtra. As of 2016-17, it had assets of 30.72 trillion (US$480 billion) and more than 14,000 branches, including 191 foreign offices spread across 36 countries, making it the largest banking and financial services company in India by assets.[3][4][5] The company is ranked 232nd on the Fortune Global 500 list of the world's biggest corporations as of 2016.[6]

The bank traces its ancestry to British India, through the Imperial Bank of India, to the founding, in 1806, of the Bank of Calcutta, making it the oldest commercial bank in the Indian subcontinent. Bank of Madras merged into the other two "presidency banks" in British India, Bank of Calcutta and Bank of Bombay, to form the Imperial Bank of India, which in turn became the State Bank of India in 1955.[7] Government of India owned the Imperial Bank of India in 1955, with Reserve Bank of India (India's Central Bank) taking a 60% stake, and renamed it the State Bank of India. In 2008, the government took over the stake held by the Reserve Bank of India.

State Bank of India is a banking behemoth and has 20% market share in deposits and loans among Indian commercial banks.[8]


Seal of Imperial Bank of India.
Seal of Imperial Bank of India

The roots of the 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 SBI subsidiaries of eight that had belonged to princely states prior to their nationalization and operatonal takeover between September 1959 and October 1960, which made eight state banks associates of SBI. This acquisition was in tune with 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.

The new logo of the SBI was introduced on 1 October 1971 and was designed by Shekhar Kammat at National Institute of Design. Though it may seem that the logo might have been greatly inspired from the Kankaria Lake, Ahmedabad. in Gujarat, Mr. Kamat had mentioned that it was mainly the shape of the cash counters at that time that inspired him and not the lake in later interviews. .[9]

SBI logo was thought to have been inspired by Kankaria Lake, Ahmedabad.

There has been a proposal to merge all the associate banks into SBI to create a "mega bank" and streamline the group's operations.[10]

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. SBI holds 98.3% in State Bank of Indore. (Individuals who held the shares prior to its takeover by the government hold the balance of 1.7%.)[11]

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 will approach 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 SBI Indore branches started functioning as SBI branches on 26 August 2010.[12]

On 7 October 2014, Arundhati Bhattacharya became the first woman to be appointed Chairman of the bank.[13] Mrs. Bhattacharya received an extension of two years of service to merge into SBI the five remaining associated banks.

The five associate banks (see below), along with Bharatiya Mahila Bank, merged with SBI on 31 March 2017.


SBI provides a range of banking products through its network of branches in India and overseas, including products aimed at non-resident Indians (NRIs). SBI has 14 regional hubs and 57 Zonal Offices that are located at important cities throughout India.

Domestic presence[edit]

SBI has 18,354 branches in India.[14] In the financial year 2012–13, its revenue was 2.005 trillion (US$31 billion), out of which domestic operations contributed to 95.35% of revenue. Similarly, domestic operations contributed to 88.37% of total profits for the same financial year.[14]

Under the Pradhan Mantri Jan Dhan Yojana of financial inclusion launched by Government in August 2014, SBI held 11,300 camps and opened over 3 million accounts by September, which included 2.1 million accounts in rural areas and 1.57 million accounts in urban areas.[15]

International presence[edit]

The Israeli branch of the State Bank of India located in Ramat Gan

As of 2014–15, the bank had 191 overseas offices spread over 36 countries having the largest presence in foreign markets among Indian banks.[5] It has branches in Singapore, Moscow, Colombo, Dhaka, Frankfurt, Hong Kong, Tehran, Johannesburg, London, Los Angeles, Male in the Maldives, Muscat, Dubai, New York, Osaka, Sydney, and Tokyo. It has offshore banking units in the Bahamas and Bahrain, and representative offices in Myanmar, Bhutan and Cape Town.

SBI has 7 retail banking branches in Singapore.

The Canadian subsidiary SBI Canada Bank (previously State Bank of India (Canada)) also dates to 1982. It has six branches, four in the Toronto area and two in the Vancouver area.

SBI operates several foreign subsidiaries or affiliates.

In 1990, it established an offshore bank: State Bank of India (Mauritius). SBI (Mauritius) has 15 branches in major cities/towns of the country including Rodrigues.

State Bank of India Branch at Jaffna, Sri Lanka

SBI Sri Lanka now has three branches located in Colombo, Kandy and Jaffna. The Jaffna branch was opened on 9 September 2013. SBI Sri Lanka, the oldest bank in Sri Lanka, celebrated its 150th year in Sri Lanka on 1 July 2014.

State Bank of India (S.B.I.) Branch at Tsim Sha Tsui, Hong Kong

In 1982, the bank established a subsidiary, State Bank of India, which now has ten branches—nine branches in the state of California and one in Washington, D.C. The 10th branch was opened in Fremont, California on 28 March 2011. The other eight branches in California are located in Los Angeles, Artesia, San Jose, Canoga Park, Fresno, San Diego, Tustin and Bakersfield.

In Nigeria, SBI operates as INMB Bank. This bank began in 1981 as the Indo–Nigerian Merchant Bank and received permission in 2002 to commence retail banking. It now has five branches in Nigeria.

In Nepal, SBI owns 49% of SBI Nepal (State Bank in Nepal) share with Nepal Government owing the rest and SBI NEPAL has branches throughout the country in each and every city as banking has become the major part of daily life for Nepalese people.

In Moscow, SBI owns 60% of Commercial Bank of India, with Canara Bank owning the rest.

In Indonesia, it owns 76% of PT Bank Indo Monex.

The State Bank of India already has a branch in Shanghai and plans to open one in Tianjin.[16]

In Kenya, State Bank of India owns 76% of Giro Commercial Bank, which it acquired for US$8 million in October 2005.[17]

In January 2016, SBI opened its first branch in Seoul, South Korea following the continuous and significant increase in trade due to the Comprehensive Economic Partnership Agreement signed between New Delhi and Seoul in 2009.

Associate banks[edit]

SBI main branch at Mumbai lit up
Main Branch of SBI in Mumbai

SBI acquired the control of seven associate banks in 1960. They were the seven regional banks of former Indian princely states, all of them which were renamed with the prefix 'State Bank'. These seven banks were 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) and State Bank of Indore (SBI - Indore). All these banks used the same logo as its parent bank.

The plans for making SBI a mega bank with trillion dollar business by merging associate banks started in 2008, and in September the same year, SBS merged with SBI. The very next year, SBI-Indore also merged. In the same year, another subsidiary named Bharatiya Mahila Bank was formed. The negotiations for merging of 6 associate banks (State Bank of Bikaner and Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala and State Bank of Travancore and Bharatiya Mahila Bank) by acquire their businesses including assets and liabilities with SBI started in 2016.[18][19] The merger of these six subsidiaries was approved by Union Cabinet on 15 June 2016.[20] The State Bank of India and all its associate banks use the same blue keyhole logo. The State Bank of India wordmark usually has one standard typeface, but also utilises other typefaces.

On 15 February 2017, the Union Cabinet approved the merger of five associate banks with SBI.[21]

SBI Mumbai LHO.
State Bank of India Mumbai LHO

The State Bank of Bikaner & Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala and State Bank of Travancore, and Bharatiya Mahila Bank were merged with State Bank of India with effect from 1 April 2017.

Non-banking subsidiaries[edit]

Apart from its five associate banks, SBI also has the following non-banking subsidiaries:

In March 2001, SBI (with 74% of the total capital), joined with BNP Paribas (with 26% of the remaining capital), to form a joint venture life insurance company named SBI Life Insurance company Ltd. In 2004, SBI DFHI (Discount and Finance House of India) was founded with its headquarters in Mumbai.

Other SBI service points[edit]

As of 31 March 2016,SBI has 49,577 ATMs & SBI group (including associate banks) has 58,541 ATMs.

Listings and shareholding[edit]

As on 20 January 2017, Government of India held around 62.22% equity shares in SBI. Life Insurance Corporation of India is the largest non-promoter shareholder in the company with 11.27% shareholding.[22]

Shareholders Shareholding
Promoters: Government of India 62.22%
Banks & Insurance Companies 11.18%
FIIs/GDRs/OCBs/NRIs 9.12%
Mutual Funds & UTI 7.88%
Others 9.6%
Total 100.0%

The equity shares of SBI are listed on the Bombay Stock Exchange,[23] where it is a constituent of the BSE SENSEX index,[24] and the National Stock Exchange of India,[25] where it is a constituent of the CNX Nifty.[26]
Its Global Depository Receipts (GDRs) are listed on the London Stock Exchange.[27]


State Bank Learning Centre in Machilipatnam

SBI is one of the largest employers in the country having 222,033 employees as on 31 March 2014, out of which there were 45,132 female employees (20%) and 2,610 (1%) employees with disabilities. On the same date, SBI had 42,744 Schedule Caste (19%) and 17,243 Schedule Tribe (8%) employees. The percentage of Officers, Assistants and Sub-staff was 36%, 46% and 18% respectively on the same date Hiring drive: 1,776 Assistants and 1,394 Officers joined the Bank in FY 2013-14, for expansion of the branch network and to mitigate staff shortage, particularly at rural and semi-urban branches. Staff productivity: As per its Annual Report for FY 2013-14, each employee contributed net profit of INR 485,000.

Recent awards and recognition[edit]

  • SBI was ranked as the top bank in India based on tier 1 capital by The Banker magazine in a 2014 ranking.[28]
  • SBI was ranked 232nd in the Fortune Global 500 rankings of the world's biggest corporations for the year 2016.[14]
  • SBI was named the 29th most reputed company in the world according to Forbes 2009 rankings[29]
  • SBI was 50th Most Trusted brand in India as per the Brand Trust Report 2013,[30] an annual study conducted by Trust Research Advisory, a brand analytics company and subsequently, in the Brand Trust Report 2014, SBI finished as India's 19th Most Trusted Brand in India.[31][32]

Major competitors[edit]

Some of the major competitors for SBI in the banking sector are large private sector banks ICICI Bank, HDFC Bank, Axis Bank, IndusInd Bank, small regional banks and other public sector banks Canara Bank, Bank of India and Bank of Maharashtra. However, in terms of average market share, SBI is by far the largest player in the market.[33]

See also[edit]


  1. ^
  2. ^ a b c d e f g "Annual Report of State Bank of India". 
  3. ^ As India's Banks Wait In Fear Of The Rupee Hitting 70 To The Dollar, Here's A List Of The Best 10 Indian Banks By Revenue. (4 September 2013). Retrieved on 2013-12-06.
  4. ^ History of the Evolution of SBI volumes 1, 2 and 3 and Banking Beyond Boundaries (Penguin, 2011)
  5. ^ a b "SBI Annual Report 2014-15" (PDF). State Bank of India. Retrieved 14 January 2016. 
  6. ^ "Fortune Global 500 list". CNN Money. Retrieved 22 July 2016. 
  7. ^ Rajesh. Banking Theory Law N Practice. Tata McGraw-Hill Education. p. 8. Retrieved 4 November 2014. 
  8. ^ "SBI accounts for one-fifth of country's loans". 25 January 2009. Retrieved 20 August 2010. 
  9. ^ "Story Behind the logo". 
  10. ^ "Indian Banks' Association". 23 April 2005. Retrieved 21 December 2010. 
  11. ^ Business Standard (21 June 2010). "Approvals for State Bank of Indore merger by July: SBI". 
  12. ^ Economic Times (26 August 2010). "State Bank of Indore branches to become SBI units from Aug 26 : SBI". The Times of India. 
  13. ^ "Arundhati Bhattacharya, first woman to head SBI". 
  14. ^ a b c "Fortune 'Global 500' 2016:State Bank of India". CNN. Retrieved 10 October 2016. 
  15. ^ "SBI takes lead in opening bank accounts under Jan Dhan Yojana". The Economic Times. 11 September 2014. Retrieved 30 September 2014. 
  16. ^ "State Bank of India to set up branch in China's Tianjin". Forbes. 21 November 2007. Retrieved 16 July 2010. [dead link]
  17. ^ "State Bank of India Acquired 76% Shareholding in Giro Commercial Bank in 2005". 8 October 2005. Retrieved 21 December 2010. 
  18. ^ "Five associate banks to merge with SBI". 18 May 2016. Retrieved 1 July 2016 – via The Hindu. 
  19. ^ Iyer, Aparna (17 May 2016). "SBI merger: India may soon have a global Top 50 bank". Retrieved 1 July 2016. 
  20. ^ "SBI merges with 5 associates: New entity set to enter world's top 50 banks list". Mumbai: Financial Express. 16 June 2016. Retrieved 16 June 2016. 
  21. ^ "Ahead of merger with SBI, associate SBT to raise up to Rs 600 crore". The Economic Times. Retrieved 18 February 2017. 
  22. ^ "Stake in PSBs: LIC holding drops as stress mounts". The Indian Express. 2016-02-15. Retrieved 2017-03-28. 
  23. ^ "State Bank of India". Retrieved 11 October 2013. 
  24. ^ "Scripwise Weightages in S&P BSE SENSEX". BSE India. Retrieved 11 October 2013. 
  25. ^ "State Bank of India". NSE India. Retrieved 11 October 2013. 
  26. ^ "Download List of CNX Nifty stocks (.csv)". NSE India. Retrieved 11 October 2013. 
  27. ^ "SBID State Bank of India GDR (Each Rep 2 SHS INR10)". London Stock Exchange. 11 October 1996. Retrieved 11 October 2013. 
  28. ^ "The top five banks in India". 10 April 2014. Retrieved 11 April 2014. 
  29. ^ Kneale, Klaus (6 May 2009). "World's Most Reputable Companies: The Rankings". Forbes. Retrieved 20 August 2010. 
  30. ^ "Brand Mahatma lags behind Sachin, Aamir: Study". India Today. 28 January 2011. Retrieved 10 October 2013. 
  31. ^ "The Economic Times". 
  32. ^ "Brand Trust Report 2014". Archived from the original on 24 October 2014. 
  33. ^ "Competitors of SBI in India - Equitymaster". 

External links[edit]