State Bank of India is a public sector banking and financial services company. It has its headquarters in Mumbai, Maharashtra. It has 14 regional hubs and 57 Zonal Offices that are located at important cities throughout India. It has nearly 16000 branches in India presently, of which 9,851 (66%) were in Rural and Semi-urban areas. It has near about 200 overseas branches spread over 36 countries.
Chairman: The current chairman of SBI is Rajnish Kumar. He succeeded Arundhati Bhattacharya as SBI’s 25th Chairman. it is also to be noted that Arundhati Bhattacharya was the first woman appointed as Chairperson of the bank.
Formation of State Bank of India and its Nationalization:
- The roots of State bank of India lies with the formation of Bank of Calcutta in 1806. Later it was renamed to Bank of Bengal.
- Next the three presidency banks namely the Bank of Bengal, the Bank of Bombay (incorporated in 1840) and the Bank of Madras (incorporated in 1843) amalgamated on 27 January 1921, and the single entity was named the Imperial Bank of India.
- The Imperial Bank of India remained a joint stock company but without Government participation.
- Next, under the provisions of the State Bank of India Act of 1955, the Reserve Bank of India acquired a controlling interest in the Imperial Bank of India and thus on 1 July 1955, the imperial Bank of India became the State Bank of India.
Associate Banks of SBI and their merger:
- In 1959, the government passed the State Bank of India (Subsidiary Banks) Act.
- Under this act, 8 SBI subsidiaries were made namely: State Bank of Jaipur (founded 1943), State Bank of Bikaner (founded 1944), State Bank of Saurashtra, State Bank of Indore (founded in 1920), State Bank of Patiala (founded 1917), State Bank of Mysore (founded 1913), State Bank of Hyderabad (founded 1941), and State Bank of Travancore (founded 1945).
- The Bank of Indore became a subsidiary of State Bank of India in 1960.
- In 1963, SBI merged State Bank of Jaipur and State Bank of Bikaner to form State Bank of Bikaner and Jaipur.
- With a view to make SBI a ‘mega bank’, merger of associate banks was proposed.
- The first merger happened when State Bank of Saurashtra merged with SBI in 2008.
- Then in 2010, the State Bank of Indore also merged with SBI leaving the associate banks of SBI to 5 in number.
- After the amalgamation of State bank of Indore with SBI, SBI’s total assets reached very close to the 10 trillion mark.
- To merge the 5 associate banks and Bharatiya Mahila Bank (BMB) Limited with SBI, the negotiations started in 2016.
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
The logo came from National Institute of Design(NID), Ahmedabad and it was inspired by Kankaria lake, Ahmedabad, Gujarat.
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.
Cash factory in Lucknow :
State Bank of India (SBI) launched its first Currency Administration Branch.
(CAB), an exclusive branch to handle currency notes in Lucknow. Also known as cash factory,CAB is part of the bank’s plan to open one currency chest in every city that will distribute notes and rupee coins to the local banks and ATMs, apart from identifying counterfeit currencies.
2019 recent news of SBI:
- In october 22, 2019 Pine Labs, a leading merchant-focussed company partnered with State Bank of India (SBI) to extend EMI facility to its current debit card customers.
- The SBI Card launched ‘SBI Card Pay’, a payment feature based on Host Card Emulation (HCE) technology for faster, convenient and more secure card payments using mobile phones in October 2019.
- In October SBI and Bank of Baroda (BoB) limited the cash withdrawals of customers using micro-ATMs (Automated Teller Machines) of other banks to 4 times a month.
- In October, SBI has launched the “Debit Card EMI facility” for its customers. Under this service, the consumer can opt for an EMI (equated monthly installment) period ranging from 6 months to 18 months.
- SBI revised ATM withdrawal charges which became effective from October 1, 2019. SBI will now charge Rs 20 for transaction declines due to insufficient balance. The bank will also impose a fee of Rs 22 on cardless cash deposits at ATMs.
- In September 2019, SBI has launched its digital banking app YONO in the UK, marking its global launch. The launched app is named as “YONO SBI UK”.
- Recently in August, 2019 the Reserve Bank of India(RBI) has imposed a penalty of Rs 50 lakh on SBI for non-compliance relating to reporting of frauds.
- In August 2019, SBI’s Shanghai branch in China became the first Indian bank to link up with China National Advance Payment System.
- In March 2019, India’s largest Bank State Bank of India (SBI) has announced the launch of YONO Cash through which customers can withdraw money from ATMs without using a card.