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SBI has over 10,000 branches while its associated banks have an additional 8,500 branches. Outside India, SBI has 82 foreign branches spread over 32 nations. In addition to banking operations, SBI has established seven subsidiaries: SBI Life, SBI Capital Markets, SBI Factors, SBICAP Securities, SBI Cards, and SBI DFHI.
Brief history
State Bank of India had its beginnings in June 1806 with setting up Bank of Calcutta in Calcutta. Three years down the line it re-established itself as Bank of Bengal, a joint stock bank of British India promoted by Bengal Government. Likewise, Bank of Bombay and Bank of Madras were established in 1840 and 1843 respectively. These three banks were amalgamated to form Imperial Bank of India in 1921. During three and a half decades of its existence, Imperial Bank of India was successful in mobilizing deposits, generating investments, and disbursement of advances. Imperial Bank thus became an integral part of India's economy.
During first 5-year plan period beginning 1951, need for rural banking operations was felt. All India Rural Credit Survey Committee recommended creating a state-sponsored bank catering to rural segment. Consequently, an act passed in Indian parliament in May 1955 led to formation of State Bank of India in July 1955.
Products and services
Services and products of SBI can be classified into personal banking, corporate banking, agricultural banking, NRI services, and government business.
Personal banking – Personal banking services include depository functions like savings, term deposits, and current deposits. Loans are disbursed for purchase of apartments, automobiles, higher education, and exigencies. Many branches provide locker facility for individuals.
Corporate banking – Term loans, project financing, bill discounting and issuance of letter of credits, cash credit, and current deposits are corporate services offered by SBI.
International banking – International banking services of SBI includes foreign exchange transaction, merchant banking, and loan syndications.
Financials
State Bank of India Group achieved sales of US $ 15.77 billion and profit of US $1.47 billion in March 2008. Asset worth amounted to US $188.56 billion during same period.
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Awards and recognition
In 2007, current chairman of SBI, O.P. Bhatt, was declared "Businessman of the Year" by CNN. In 2007, he was also given "Transformational Leader Award" by Asian Centre for Corporate Governance.
Current financial crisis
Tight liquidity condition has prompted SBI to cut lending rates from 13.75% to 13%. SBI expects to raise around $1-$2 billion to counter tight liquidity problem.
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