CHAPTER- 1

INTRODUCTION

State Bank of India (SBI)

1.1:Introduction to State Bank of India (SBI)

SBI is an institution that has been at the forefront of India’s banking and financial sector since its inception
more than 200 years ago. SBI’s rich legacy, steadfast commitment to its customers, and its vision for the
future makes it a cornerstone of India’s economic progress. With a comprehensive suite of products and
services, a strong focus on Corporate Social Responsibility (CSR), and a vision to be the bank of choice for all,
SBI continues to be a trusted financial partner for millions across the nation. SBI, remains the largest Indian
Bank with 1/4th market share, serving over 48 crore customers through its vast network of over 22,405
branches, 65,627 ATMs/ADWMs, 76,089 BC outlets.

History
SBI’s journey began in 1806 when the Bank of Calcutta was established. It later merged with the Bank of
Bombay and Bank of Madras in 1921 to form the Imperial Bank of India. In 1955, the Imperial Bank was
nationalized, and it became the State Bank of India. This transformation marked the birth of the nation’s
largest and most influential bank.

SBI’s history is a testament to its enduring commitment to the economic and social development of India.
Over the years, it has played a pivotal role in supporting various sectors, including agriculture, small and
medium-sized enterprises, and retail banking. SBI’s wide network of branches, ATMs, and digital banking
services ensures that it remains deeply ingrained in the lives of millions of Indians.

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1.2: Details of company
Products and Services
SBI offers a comprehensive range of financial products and services that cater to the diverse needs of its
customers. These include

Savings and Current Accounts

Savings Account: SBI offers a wide range of savings account options catering to various customer needs, from
basic savings accounts to specialized accounts for students, senior citizens, and more. These accounts provide
a secure place to park your savings, along with interest earnings.

Current Account: SBI’s current accounts are designed for businesses, allowing them to manage their finances
efficiently. They come with features such as overdraft facilities, online banking, and customized account
options for different business sizes and needs.

Personal Banking
Personal Loans: SBI provides a variety of personal loan options to help individuals meet their financial goals,
whether it’s for a wedding, education, medical emergencies, or any other personal need. The bank offers
competitive interest rates and flexible repayment options.

Home Loans: SBI’s home loans are renowned for their affordability and flexibility. They cater to the diverse
housing needs of customers, including home purchase, construction, renovation, and balance transfer.

Car Loans: SBI offers car loans to help customers purchase their dream vehicles. These loans come with
competitive interest rates and convenient repayment options.

Education Loans: SBI supports students’ educational aspirations with loans that cover tuition fees, living
expenses, and other educational costs both in India and abroad.

Gold Loans: Customers can avail gold loans by pledging their gold ornaments or assets as collateral. SBI’s gold
loans provide quick financing solutions for various purposes.

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With a legacy of over 200 years, State Bank of India is an Indian multinational, public sector banking and
financial services institution. For SBI, the interests of the common man have always remained at the core of
its business. The Bank has a strong portfolio of distinctive products & services, and leverages technology to
deliver and manage them in a personalised and customer centric way.

Headquartered in Mumbai, SBI provides a wide range of products and services to individuals, commercial
enterprises, large corporates, public bodies, and institutional customers through its various branches and
outlets, joint ventures, subsidiaries, and associate companies. It has always been in the forefront to embrace
changes without losing sight of its values of Service, Transparency, Ethics, Politeness and Sustainability.

Corporate and SME Banking

Working Capital Loans: SBI offers working capital loans to meet the short-term financing needs of businesses,
ensuring they have adequate funds to operate smoothly.

Term Loans: Businesses can access term loans for capital expenditure, expansion, and other long-term
financial requirements.

Trade Finance: SBI’s trade finance services support international and domestic trade, facilitating import and
export transactions through various instruments like letters of credit, bank guarantees, and more.

Merchant Services: SBI offers a range of merchant services such as Point of Sale (PoS) terminals, payment
gateway solutions, and e-commerce payment options to help businesses manage their transactions
efficiently.

Business Accounts: SBI’s business accounts are designed to cater to the unique banking needs of corporate
and SME clients. They come with features like overdraft facilities, online banking, and specialized account
options for different business sizes.

Wealth Management

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Private Banking: SBI’s private banking services cater to high-net-worth individuals, providing personalized
investment solutions, estate planning, and financial advice.

Wealth Management Services: These services include investment advisory, portfolio management, and a
wide array of wealth products to help individuals grow and protect their wealth.

Digital Banking:
Online Banking: SBI’s online banking platform allows customers to perform a wide range of banking
transactions, including fund transfers, bill payments, and account management, from the comfort of their
homes.

Mobile Banking: SBI’s mobile banking app provides on-the-go access to banking services, making it
convenient for customers to manage their accounts and make transactions.

Credit Cards
SBI offers a variety of credit cards to suit different lifestyles and preferences, including travel, shopping, fuel,
and dining rewards. These cards come with attractive offers, rewards, and cashback benefits.

International Banking
SBI’s international banking services help customers with foreign exchange, remittances, and international
investment services. The bank also offers NRI banking solutions to cater to the needs of non-resident Indians.

Agri and Rural Banking

SBI offers a range of financial products and services tailored to the unique requirements of the agricultural
and rural sectors, including agricultural loans, Kisan Credit Cards, and rural savings accounts.

SBI’s extensive product and service portfolio reflects its commitment to serving a wide range of customers,
from individuals to large corporations, with innovative and reliable financial solutions.

SBI’s wide-ranging products and services are designed to meet the specific financial needs of its diverse
customer base. Whether it’s a small savings account or a complex international financial transaction, SBI is
there to provide trusted and reliable solutions.

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1.3: Nature of SBI
State Bank of India (SBI) a Fortune 500 company, is an Indian Multinational, Public Sector Banking and
Financial services statutory body headquartered in Mumbai. The rich heritage and legacy of over 200 years,
accredits SBI as the most trusted Bank by Indians through generations
Administrative Offices and Branches
SBI provides a range of banking products through its network of branches in India and overseas, including
products aimed at non-resident Indians (NRIs). Concerning domestic banking business, SBI has 17 regional
hubs known as local head offices (LHOs), under whom are 57 administrative offices (AOs), that are located in
important cities throughout India, under whom are furthermore administrative sub-offices known as regional
business offices (RBOs), with each RBO having, under its direct administrative control, some 40 to 50
branches.

Domestic

Samriddhi Bhavan, Kolkata

As per SBI Official website data, SBI has 22,405 branches in India.[32][33] In the financial year 2012–13, its
revenue was ₹2.005 trillion (US$24 billion), 95.35% of which came from domestic operations. Similarly,
domestic operations contributed to 88.37% of total profits for the same financial year.[32]

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 lakh (3 million) accounts by September, which included 21 lakh
(2.1 million) accounts in rural areas and 15.7 lakh (1.57 million) accounts in urban areas.[34]

International
As of 2014–15, the bank had 191 overseas offices spread over 36 countries having the largest presence in
foreign markets among Indian banks.[35]

SBI Australia[36]
SBI Bangladesh[37]
SBI Bahrain[38]

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SBI Botswana The SBI Botswana subsidiary was registered on 27 January 2006 and was issued a banking
licence by the Bank of Botswana on 29 July 2013. The subsidiary handed over its banking licence and closed
its operations in the country.[39]
SBI Canada Bank[40] was incorporated in 1982 as a subsidiary of the State Bank of India. SBI Canada Bank is a
Schedule II Canadian Bank listed under the Bank Act and is a member of the Canada Deposit Insurance
Corporation.
SBI China
SBI (Mauritius) Ltd SBI established an offshore bank in 1989, State Bank of India International (Mauritius) Ltd.
This then amalgamated with The Indian Ocean International Bank (which had been doing retail banking in
Mauritius since 1979) to form SBI (Mauritius) Ltd. Today, SBI (Mauritius) Ltd has 14 branches – 13 retail
branches and 1 global business branch at Ebene in Mauritius.
Nepal SBI Bank Limited
Main article: Nepal SBI Bank Limited
In Nepal, SBI owns 55% of the share. (The state-owned Employees Provident Fund of Nepal owns 15% and
the general public owns the remaining 30%.) Nepal SBI Bank Limited has branches throughout the country.

SBI Sri Lanka[43] now has three branches located in Colombo, Kandy and Jaffna. The Jaffna branch was
opened on 9 September 2013. SBI Sri Lanka is the oldest bank in Sri Lanka; it was founded in 1864.
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 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. State Bank of India already has a branch in Shanghai and plans to open
one in Tianjin.

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

SBI South Korea In January 2016, SBI opened its first branch in Seoul, South Korea.

SBI South Africa

SBI UK Ltd

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1.4: Vision and Mission
Vision: To be the bank of choice for transforming lives through innovative and responsible banking.

Mission: To enhance the quality of life for people through customer-centric financial solutions and social
initiatives.

SBI’s vision and mission reflect its dedication to serving the nation and its people. As the bank of choice, SBI is
committed to providing innovative banking solutions that transform lives and empower individuals and
businesses.

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Missions
We will be prompt, polite and proactive with our customers.
We will speak the language of Young India.

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We will create products and services that help our customers achieve their goals.
We will go beyond the call of duty to make our customers feel valued.
We will be of service even in the remotest part of our country.
We will offer excellence in services to those abroad as much as we do to those in India.
We will imbibe state-of-the-art technology to drive excellence.

1.5: Awards
India’s Best Annual Report Awards-2022 by Free Press Journal.
Three Gold Awards at ET Human Capital Awards
HR Leader of the Year – Large Scale Organisations
Excellence in Business Continuity Planning & Management
Most Valuable Employer during COVID-19
SBI won two Awards from NASSCOM -DSCI
Best Security Operations Centre of the Year
Gold category in Public Sector Bank in Outlook Money Awards 2022
Transformative Milestones
The transformative event came in 1921 when these three banks merged to create the Imperial Bank of India.
However, it was postindependence in 1955 that the Imperial Bank was nationalized and rechristened as the
State Bank of India. This pivotal step brought banking services to the masses and marked the beginning of
SBI’s journey as a public sector bank.

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1.6: Objectives of SBI
The State Bank of India (SBI), being one of the largest and most significant financial institutions in India,
typically operates with several overarching objectives:

Promotion of Financial Inclusion: SBI aims to extend banking services to the unbanked and underbanked
sections of society, thereby fostering financial inclusion and economic development.

Customer Satisfaction: Providing superior banking services to its customers is a primary objective. This
includes efficient handling of transactions, offering a wide range of financial products, and maintaining high
standards of customer service.

Profitability and Sustainability: Like any business entity, SBI seeks to generate profits and ensure its long-term
sustainability. This involves prudent management of assets and liabilities, effective risk management, and
strategic investments.

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Supporting Economic Growth: SBI plays a crucial role in financing various sectors of the economy, including
agriculture, small and medium-sized enterprises (SMEs), infrastructure, and retail. By providing financial
support and credit facilities, it contributes to economic growth and development.

Adoption of Technology and Innovation: SBI recognizes the importance of technology and innovation in
modern banking. It strives to adopt the latest technological advancements to improve operational efficiency,
enhance security, and offer innovative financial products and services to its customers.

Corporate Social Responsibility (CSR): SBI is committed to fulfilling its corporate social responsibility by
engaging in various social welfare activities, such as education, healthcare, environmental conservation, and
community development.

Compliance and Governance: Ensuring compliance with regulatory requirements and maintaining high
standards of corporate governance is paramount for SBI. This involves adhering to legal and regulatory
frameworks, as well as implementing robust internal controls and risk management practices.

1.7: Core value of SBI

The core values of the State Bank of India (SBI) typically revolve around principles that guide its actions,
decisions, and relationships with stakeholders. While these may evolve over time, some common core values
associated with SBI include:

Integrity: Upholding honesty, transparency, and ethical behavior in all dealings, both internally and
externally, is a fundamental value for SBI. This involves maintaining the highest standards of integrity in
financial transactions, customer interactions, and corporate governance.

Customer Centricity: SBI places a strong emphasis on meeting the needs and expectations of its customers.
Providing excellent service, understanding customer requirements, and offering tailored solutions are central
to its operations.

Professionalism: SBI values professionalism in all aspects of its operations. This includes competence,
accountability, and a commitment to continuous improvement. Employees are expected to conduct
themselves with professionalism and dedication in serving the bank's stakeholders.

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Innovation: Embracing innovation and adaptability is crucial for SBI to stay competitive and relevant in a
rapidly evolving banking landscape. This involves fostering a culture of creativity, encouraging new ideas, and
leveraging technology to enhance products, services, and processes.

Teamwork and Collaboration: SBI recognizes the importance of teamwork and collaboration in achieving its
objectives. Building strong teams, fostering a collaborative work environment, and promoting mutual respect
among employees are key to its success.

Social Responsibility: SBI is committed to making a positive impact on society beyond its core banking
activities. This includes corporate social responsibility initiatives aimed at addressing social, environmental,
and economic challenges, and contributing to the welfare of communities it serves.

Excellence: Striving for excellence in everything it does is a hallmark of SBI's culture. This involves setting high
standards, continuously improving performance, and delivering superior results to its stakeholders.

State Bank of India (SBI) offers a wide range of products and services catering to various financial needs of
individuals, businesses, and institutions. Here's an overview of some of the key products and services offered
by SBI:

1.8: Products and services

SBI products and services are as followes

1. Deposit Products:
- Savings Accounts
- Current Accounts
- Fixed Deposits
- Recurring Deposits
- SBI Tax Savings Scheme

2. Loan Products:
- Home Loans

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 - Personal Loans
- Car Loans
- Education Loans
- Loan Against Property
- Gold Loans
- Business Loans
- Overdraft Facilities

3. Investment Products:
- Mutual Funds
- Demat Accounts
- Online Trading
- National Pension System (NPS)
- Sovereign Gold Bonds
- Public Provident Fund (PPF)
- SBI Life Insurance
- SBI General Insurance

4. Cards:
- Credit Cards
- Debit Cards
- Prepaid Cards

5. Digital Banking Services:

- Online Banking (SBI Internet Banking)
- Mobile Banking (SBI Anywhere)
- SBI YONO (You Only Need One) App for all banking, shopping, and investment needs
- SBI Quick – Missed Call & SMS Banking
- UPI (Unified Payments Interface)

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 - BHIM SBI Pay

6. International Banking Services:

- Foreign Exchange Services
- NRI Services
- Remittances

7. Government Schemes and Services:

- Pradhan Mantri Jan Dhan Yojana (PMJDY)
- Pradhan Mantri Mudra Yojana (PMMY)
- Atal Pension Yojana (APY)
- Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
- Pradhan Mantri Suraksha Bima Yojana (PMSBY)

8. Wealth Management Services:

- SBI Wealth
- Private Banking Services

9. Corporate Banking Services:

- Cash Management Services
- Trade Finance
- Corporate Loans

10. Agri & Rural Banking Services:

- Agriculture Loans
- Kisan Credit Cards
- Rural Self-Employment Training Institutes (RSETIs)

11. Insurance Products:

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 - Life Insurance
- Health Insurance
- Motor Insurance
- Home Insurance

12. Other Services:

- Safe Deposit Lockers
- ATM Services
- E-Tax Payment

SBI continually introduces new products and services to meet the evolving needs of its customers while
ensuring convenience, accessibility, and security.

State Bank of India (SBI) engages in various market operations as part of its banking activities. These
operations are aimed at managing liquidity, maximizing returns on investments, and mitigating risks. Here are
some of the key market operations conducted by SBI:
1.9: Market operations

1. Money Market Operations:

- SBI participates in the interbank money market to manage its short-term liquidity requirements. It
engages in transactions such as borrowing and lending through instruments like call money, notice money,
and term money markets.

2. Government Securities Trading:

- SBI is involved in trading government securities both in the primary and secondary markets. It participates
in auctions conducted by the Reserve Bank of India (RBI) for acquiring government bonds and also trades in
these securities in the secondary market for managing its investment portfolio.

3. Foreign Exchange Operations:

- SBI conducts foreign exchange operations to facilitate international trade and manage currency risk. It
offers services such as currency exchange, forward contracts, options, and swaps to its customers for hedging
foreign exchange exposures.

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4. Derivatives Trading:
- SBI engages in derivatives trading for hedging its market risks and managing interest rate and currency
exposures. It trades in interest rate swaps, currency swaps, forward rate agreements, and other derivative
instruments to manage its risk profile.

5. Investment Banking:
- SBI offers investment banking services such as underwriting, advisory, and syndication services for
corporate clients. It assists companies in raising capital through debt and equity issuances, mergers and
acquisitions, and other financial transactions.

6. Asset Management:
- SBI manages various investment funds, including mutual funds and portfolio management services, for
retail and institutional investors. It offers a wide range of investment options across asset classes, including
equities, fixed income securities, and alternative investments.

7. Treasury Operations:
- SBI's treasury department manages the bank's balance sheet by optimizing the allocation of assets and
liabilities to maximize returns and minimize risks. It actively trades in financial instruments such as bonds,
currencies, commodities, and derivatives to generate profits for the bank.

8. Capital Market Activities:

- SBI participates in capital market activities such as equity investments, initial public offerings (IPOs), rights
issues, and corporate bonds. It invests in listed companies, provides advisory services for capital raising
activities, and underwrites securities offerings.
These market operations help SBI optimize its profitability, manage risks, and support the financial needs of
its customers and stakeholders. Additionally, SBI complies with regulatory requirements and best practices in
conducting its market operations.

1.10: Competitors of SBI

*Axis Bank
*ICICI Bank
*HDFC Bank

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*Bank of Baroda
*Kotak Mahindra Bank
*Indian Bank
*State Bank of India
*BOI
*Canara Bank

1.13: Objectives of State Bank of India:

1. To establish a strong banking network, so as to serve the people of the country more efficiently.
2. To provide adequate banking facilities to rural people, because there were negligible banking facilities in
villages. 3.
To provide more and convenient credit facilities for the agricultural sector.
4. To provide financial assistance to small scale sector for their development, so that the overall economy of
the country also improves.
5. To encourage and mobilize small savings and to develop a habit of thrift among villagers and people of
small and low-income group.
6. To provide financial assistance to warehousing schemes for more storage facilities for agricultural
products.
7. To give necessary financial assistance to the weaker sections of the society, so that they become self-
supporting and contribute to the economic prosperity of the country.
8. To help in the transfer of funds from one place to another as per the requirements of different agencies.
9. To assist the Reserve Bank of India in implementing the monetary and credit policies in the country.

1.14: Achievements of State Bank of India:

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 1. The major credit for the development of banking facilities in the country during the past few years belongs
to the State Bank of India. In 1993, the total. number of branches of the State Bank of India was 8,738 and
that of subsidiary banks 4,317. The total number of branches of the State Bank of India group was thus 13055
in 1993.
2. The capital and other reserves of the State Bank of India was more than 1000 crores in the year 1990-91.
3. The State Bank of India group has rendered a valuable service by opening most of its branches in rural
areas of the country. More than 75% of branches are in rural areas and small towns.
4. The number of villages adopted by the bank stood at 56,405 with a quantum of credit to the tune of Rs.
905 crores covering 23.6 lacs farmers in 1984.
5. The State Bank of India opened agricultural development branches with adequate technical expertise to
help the farmers for agricultural development. The number of such branches stood at 432 by the end of 1984
with outstanding advances amounting to Rs. 641 crores covering 16.8 lacs farmers.
6. By the end of 1984, the bank’s advances to landless labourers, tenant farmers, and sharecroppers
accounted for 38% of the bank’s direct agricultural advance.
7. The bank had advanced a sum of Rs. 1,737 crores to 4.7 lacs small scale industrial establishments up to
Dec. 31, 1984.
8. The State Bank has also extended credit to the weaker sections of the community like tribals, Harijans,
persons who are socially handicapped, and disabled, orphans, slum dwellers etc. By the end of 1984, the bank
had assisted 3.1 lakh persons under various innovative banking schemes and the total outstanding stood at
Rs. 33 crores.
From the above discussion, it is clear that the establishment of the State Bank of India was an important
event in the history of Indian banking. State Bank of India has helped in overcoming the problem of rural
credit to a certain extent. With over 13,000 branches, it is evident that the State Bank of India has become a
powerful organisation in the Indian banking system besides having offices even in other countries like
America and Germany.

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