State Bank of India

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State Bank of India

Type

Public

Traded as

NSE: SBIN
BSE: 500112
LSE: SBID
BSE SENSEX Constituent
CNX Nifty Constituent

Industry

Banking, Financial Services

Founded

2 June 1956 , Nationalization , 1 July 1955[1]

Headquarters

Mumbai, Maharashtra, India

Area served

Worldwide

Key people

Arundhati Bhattacharya
(Chairperson)

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

210736 crore (US$33 billion) (2013)[2][3]

Profit

17916 crore (US$2.8 billion) (2013)[2][3]

Total assets

2374839 crore (US$370 billion) (2013)[2][3]

Total equity

98884 crore (US$16 billion) (2012)[2][3]

Owner

Government of India

Number of

222,033 (2014)

employees

Slogan

The Banker to Every Indian

Website

www.sbi.co.in

State Bank of India (In Hindi ) 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 December 2013, it had assets of US$388 billion and
17,000 branches, including 190 foreign offices, making it the largest banking and financial services
company in India by assets.[4][5]
State Bank of India is one of the Big Four banks of India, along with Bank of Baroda, Punjab
National Bank and Bank of India.[6][7]
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.[8] 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 regional banking behemoth and has 20% market share in deposits and loans
among Indian commercial banks.[9]
Contents
[hide]

1 History

2 Operations
o

2.1 Domestic presence

2.2 International presence

2.3 Associate banks

2.4 Non-banking subsidiaries

2.5 Other SBI service points

3 Logo and slogan

4 Listings and shareholding

5 Employees

6 Recent awards and recognitions

7 Major competitors

8 See also

9 References

10 External links

History[edit]

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 Indiaacquired
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
take-over 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.
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. Then
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 inch very close to the 10 trillion mark (10 billion
long scale). The total assets of SBI and the State Bank of Indore stood at 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 October 7, 2013, Arundhati Bhattacharya became the first woman to be appointed Chairperson
of the bank.[13]

Operations[edit]
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 14,816 branches in India, as on 31 March 2013, of which 9,851 (66%) were in Rural and
Semi-urban areas.[2] In the financial year 2012-13, its revenue was INR 200,560 Crores (US$36.9
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.[2]
Under the Pradhan Mantri Jan Dhan Yojana of financial inclusion launched by Government in August
2014, SBI held 11,300 camps and opened over 30 lakhs accounts by September, which included
21.16 lakh accounts in rural areas and 8.8 lakh accounts in urban areas. [14]

International presence[edit]

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

As of 28 June 2013, the bank had 180 overseas offices spread over 34 countries. It has branches of
the parent in 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, Bahrain, and Singapore, and representative offices
in Bhutan and Cape Town.
The Canadian subsidiary, State Bank of India (Canada) also dates to 1982. It has seven branches,
four in the Toronto area and three in theVancouver 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.
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 (California), 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 Hindu States of Nepal (Hindu Rajya 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.[15]

In Kenya, State Bank of India owns 76% of Giro Commercial Bank, which it acquired for US$8
million in October 2005.[16]

Associate banks[edit]

Main Branch of SBI in Mumbai.

SBI now has five associate banks, down from the eight that it originally acquired in 1959. All use the
State Bank of India logo, which is a blue circle, and all use the "State Bank of" name, followed by the
regional headquarters' name:

State Bank of Bikaner & Jaipur

State Bank of Hyderabad

State Bank of Mysore

State Bank of Patiala

State Bank of Travancore

The State Bank of India and all its associate banks are identified by the same blue keyhole logo. The
State Bank of India wordmark usually has one standard typeface, but also utilises other typefaces.

State Bank of India Mumbai LHO.

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

SBI Capital Markets Ltd

SBI Funds Management Pvt Ltd

SBI Factors & Commercial Services Pvt Ltd

SBI Cards & Payments Services Pvt. Ltd. (SBICPSL)

SBI DFHI Ltd

SBI Life Insurance Company Limited

SBI General Insurance

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 2014: SBI has 43,515 ATMs and SBI group (including associate banks) has 51,491
ATMs. SBI has become the first bank to install an ATM at Drass in the Jammu & Kashmir Kargil
region. This was the Bank's 27,032nd ATM on 27 July 2012.

Logo and slogan[edit]

The logo of the State Bank of India is a blue circle with a small cut in the bottom that depicts
perfection and the small man the common man - being the center of the bank's business. The
logo came from National Institute of Design(NID), Ahmedabad and it was inspired by Kankaria
Lake, Ahmedabad.[17]

Slogans: "PURE BANKING, NOTHING ELSE", "WITH YOU - ALL THE WAY", "A BANK OF
THE COMMON MAN", "THE BANKER TO EVERY INDIAN", "THE NATION BANKS ON US"

Listings and shareholding[edit]

As on 31 March 2014, Government of India held around 58.59% equity shares in SBI. Life Insurance
Corporation of India is the largest non-promoter shareholder in the company with 14.99%
shareholding.
Shareholders

Shareholding[18]

Promoters: Government of India

58.60%

Banks & Insurance Companies

16.79%

FIIs/GDRs/OCBs/NRIs

12.04%

Mutual Funds & UTI

03.78%

Private Corporate Bodies

02.87%

Others

5.92%

Total

100.0%

The equity shares of SBI are listed on the Bombay Stock Exchange,[19] where it is a constituent of
the BSE SENSEX index,[20] and the National Stock Exchange of India,[21] where it is a constituent of
the CNX Nifty.[22]
Its Global Depository Receipts (GDRs) are listed on the London Stock Exchange.[23]

Employees[edit]
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 4.85 lakhs.

Recent awards and recognitions[edit]

SBI was ranked 73rd largest bank in the world, according to 2014 SNL financial data.

SBI won the Best Bank award in the 'ASiAMONEY FX POLL OF POLLS 2014 for best
overall performance as domestic provider of Forex services over the last 10 years. [24]

SBI was ranked as the top bank in India based on tier 1 capital by The Banker magazine in a
2014 ranking.[25]

SBI was ranked 298th in the Fortune Global 500 rankings of the world's biggest corporations
for the year 2012.[3]

SBI won "Best Public Sector Bank" award in the D&B India's study on 'India's Top Banks
2013'.[26][27]

State Bank of India won three IDRBT Banking Technology Excellence Awards 2013 for
Electronic Payment Systems, Best use of technology for Financial Inclusion, and Customer
Management & Business Intelligence in the large bank category.[28]

SBI won National Award for its performance in the implementation of Prime Ministers
Employment Generation Programme (PMEGP) scheme for the year 2012. [29]

Best Online Banking Award, Best Customer Initiative Award & Best Risk Management Award
(Runner Up) by IBA Banking Technology Awards 2010

SKOCH Award 2010 for Virtual corporation Category for its e-payment solution
SBI was the only bank featured in the "top 10 brands of India" list in an annual survey
conducted by Brand Finance and The Economic Times in 2010.[30]

The Bank of the year 2009, India (won the second year in a row) by The Banker Magazine

Best Bank Large and Most Socially Responsible Bank by the Business Bank Awards 2009

Best Bank 2009 by Business India

The Most Trusted Brand 2009 by The Economic Times.

SBI was named the 29th most reputed company in the world according to Forbes 2009
rankings[31]

Most Preferred Bank & Most preferred Home loan provider by CNBC

Visionaries of Financial Inclusion By FINO

Technology Bank of the Year by IBA Banking Technology Awards

SBI was 50th Most Trusted brand in India as per the Brand Trust Report 2013,[32] 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. [33][34]

Major competitors[edit]
Some of the major competitors for SBI in the banking sector are Axis Bank, ICICI Bank, HDFC
Bank, Punjab National Bank, Bank of Baroda, IndusInd Bank, Canara Bank, Bank of India andUnion
Bank of India. However in terms of average market share, SBI is by far the largest player in the
market.[35]
http://marketgraphs3.economictimes.indiatimes.com/charting/CompanySparkLine1.aspx?companyid=12040&exchange=50&width=90&height=50&chartmode=intraday

State Bank of India Share Holding

Category

No. of Shares

Percentage

Promoters

4,374,598,250

58.60

Financial Institutions

1,029,425,196

13.79

Foreign Institutions

892,414,953

11.95

NBFC and Mutual

Funds

390,844,936

5.24

General Public

389,685,869

5.22

Other Companies

194,535,109

2.61

Others

14,539,138

0.19

Foreign - NRI

10,218,349

0.14

Foreign - OCB

9,300,940

0.12

Central Government

1,729,320

0.02

4,020

0.00

Foreign Industries

Capital Structure - State Bank of India

Period

Instrument

From

To

2013

2014

2012

Authorized
Capital

Issued
Capital

-PAI D U P-

Shares (nos)

Face
Value

(Rs. cr)

(Rs. cr)

Capital (Rs. Cr)

Equity Share

5000.0

746.6

746573092

10.0

746.6

2013

Equity Share

5000.0

684.1

684033971

10.0

684.0

2011

2012

Equity Share

5000.0

671.1

671044838

10.0

671.0

2010

2011

Equity Share

5000.0

635.1

634998991

10.0

635.0

2009

2010

Equity Share

1000.0

635.0

634882644

10.0

634.9

2008

2009

Equity Share

1000.0

635.0

634880222

10.0

634.9

2007

2008

Equity Share

1000.0

631.6

631470376

10.0

631.5

2006

2007

Equity Share

1000.0

526.3

526298878

10.0

526.3

2005

2006

Equity Share

1000.0

526.3

526298878

10.0

526.3

2004

2005

Equity Share

1000.0

526.3

526298878

10.0

526.3

2003

2004

Equity Share

1000.0

526.3

526298878

10.0

526.3

2002

2003

Equity Share

1000.0

526.3

526298878

10.0

526.3

2001

2002

Equity Share

1000.0

526.3

526298878

10.0

526.3

2000

2001

Equity Share

1000.0

526.3

526298878

10.0

526.3

1996

2000

Equity Share

1000.0

526.3

526298878

10.0

526.3

1999

2000

Equity Share

1000.0

526.3

526298878

10.0

526.3

1995

1996

Equity Share

1000.0

474.0

474009872

10.0

474.0

1994

1995

Equity Share

1000.0

474.0

474009189

10.0

474.0

1993

1994

Equity Share

1000.0

473.8

473828726

10.0

473.8

1991

1993

Equity Share

1000.0

200.0

20000000

100.0

200.0

Shareholding Pattern - State Bank of India

Holder's Name

No of Shares

% Share Holding

Promoters

4374598250

58.6%

FinancialInstitutions

1029425196

13.79%

ForeignInstitutions

892414953

11.95%

NBanksMutualFunds

390844936

5.24%

GeneralPublic

389685869

5.22%

OtherCompanies

194535109

2.61%

Others

14539138

0.19%

ForeignNRI

10218349

0.14%

ForeignOcb

9300940

0.12%

CentralGovt
ForeignIndustries

1729320

0.02%

4020

0%