INTRODUCTION

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. On 1st April, 2017, State Bank of India, which is India's largest Bank merged with
five of its Associate Banks (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 with itself. This is the first ever large scale consolidation in the Indian Banking Industry.
With the merger, State Bank of India will enter the league of top 50 global banks with a balance
sheet size of 33 trillion, 278,000 employees, 420 million customers, and more than 24,000
branches and 59,000 ATMs. SBI's market share will increase to 22 percent from 17 per cent. It
has 198 offices in 37 countries; 301 correspondents in 72 countries. The company is ranked
232nd on the Fortune Global 500 list of the world's biggest corporations as of 2016.

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. 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.

HISTORY
The roots of the State Bank of India lie in the first decade of the 19th century, when the Bank of
np 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 asjoint 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 toprincely states prior to their nationalization and
operatonal takeover between September 1959 and October 1960, which made eight state banks
associates of SBI. This une 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.

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%.)

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.

On 7 October 2013, Arundhati Bhattacharya became the first woman to be appointed

Chairperson of the bank. Mrs. Bhattacharya received an extension of two years of service to
merge into SBI the five remaining associated banks.

OPERATIONS

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.

The business operations of SBI can be broadly classified into the key income generating areas
such as National Banking, International Banking, Corporate Banking, & Treasury operations.
DOMESTIC PRESENCE
SBI has 18,354 branches in India.[14] In the financial year 201213, 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.

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.

INTERNATIONAL PRESENCE
As of 201415, the bank had 191 overseas offices spread over 36 countries having the largest
presence in foreign markets among Indian banks.[16] 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
theToronto area and two in the Vancouver area.

SBI operates several foreign subsidiaries or affiliates.In 1989, SBI established an offshore bank:
State Bank of India International (Mauritius) Ltd in Mauritius. SBI International (Mauritius) Ltd
amalgamated with The Indian Ocean International Bank, which has been doing retail banking
business in Mauritius since 1979 with the new name, SBI (Mauritius) Ltd. Today, SBI
(Mauritius) Ltd is having fully integrated 14 branches- 13 Retail Branches covering major cities
and town of Mauritius, including Rodrigues, and 1 Global Business Branch at Ebene in
Mauritius. Apart from Branch Banking, customers also have the convenience of 24x7 ATM
Banking at 18 ATMs across the country. Bank also has a 24x7 robust Internet Banking Channel
enabling customers to work from their homes and offices.

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.
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. In Kenya, State Bank of India owns 76% of Giro
Commercial Bank, which it acquired for US$8 million in October 2005.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
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. The merger of these six subsidiaries was approved by Union
Cabinet on 15 June 2016. 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.
What was overlooked, however, were different pension liability provisions and accounting
policies for bad loans, based on regional risks.

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
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.
LISTINGS & SHAREHOLDINGS

As on 31 March 2017, Government of India held around 61.23% equity shares in SBI. Life
Insurance Corporation of India is the largest non-promoter shareholder in the company with
8.82% shareholding.

Shareholders Shareholding

Promoters: Government of India 61.23%

FIIs/GDRs/OCBs/NRIs 11.17%

Banks & Insurance Companies 10.00%

Mutual Funds & UTI 8.29%

Others 9.31%

Total 100.0%

The equity shares of SBI are listed on the Bombay Stock Exchange, where it is a constituent of
the BSE SENSEX index, and the National Stock Exchange of India, where it is a constituent of
the CNX Nifty. Its Global Depository Receipts (GDRs) are listed on the London Stock
Exchange.
 COMPETITORS
Competitors and other players in the field:-

Top Performing Public Sector Banks

Andhra Bank
Allahabad Bank
Punjab National Bank
Dena Bank
Vijaya Bank

Top Performing Private Sector Banks

HDFC Bank

ICICI Bank

AXIS Bank

Kotak Mahindra Bank

Centurion Bank of Punjab

Top Performing Foreign Banks

Citibank

Standard Chartered

HSBC Bank

ABN AMRO Bank

American Express
DIFFERENT PRODUCTS OF SBI

DEPOSIT LOANS CARDS DIFFERENT CREDIT

CARDS
Savings Home Loans Consumer SBI International
Account Cards cards

Life Plus Loan Against Credit Card SBI Gold cards

Senior Citizens Property
Savings
Account

Fixed Personal Travel Card SBI Gold Master

Deposits Loans cards

Security Car Loan Debit Cards Your City Your

Cards
Deposits

Recurring Loans against Commercial

Deposits Securities Cards

Tax-Saver Two Wheeler Corporate Partnership Cards

Fixed Deposit Cards

Salary Account Pre-approved Prepaid Card

Loans

Advantage Retail Asset Purchase SBI Employee

Woman Card Cards
Savings
Account

Rural Savings Farmer Distribution

Account Finance Cards

People's Business Business SBI Advantage

Savings Installment Card Cards
Account Loans
MANAGEMENT

Ms. Arundhati Bhattacharya : Chairman

Shri Prashant Kumar :Deputy Managing Director (Corporate Development Officer)

Anshula Kant :Dy. Managing Director & Chief Financial Officer

Siddhartha Sengupta :Dy. Managing Director & Group Executive (International Banking)

Sunil Srivastava :Dy. Managing Director (Corporate Accounts Group)

Manju Agarwal :Dy. Managing Director (Corporate Strategy & New Business)

Mrutyunjay Mahapatra :Dy. Managing Director & Chief Information Officer

J. Packirisamy :Dy. Managing Director (Mid Corporate Group)

Dr. M.S. Sastry :Dy. Managing Director & Chief Risk Officer

Karnam Sekar :Dy. Managing Director & Chief Credit Officer

Mr. Venkat Nageswar Chalasani :Deputy Managing Director, Global Markets

Shri Haridas K.V. :Deputy Managing Director, (RETAIL BUSINESS)- NBG