State Bank of India

State Bank of India

Introduction about the State Bank of India

State Bank of India is the Indian Multinational Public Sector Bank and the Financial Services statutory.  It has its headquarters in Mumbai.

It is ranked as the 43rd largest bank in the world and also as the 221st in the Fortune Global 500 list of the world’s biggest corporations of the year 2020, being the only bank on that list.

It is a public sector bank and has a 25% share of the total loan and the deposits market.

The Imperial Bank has changed into the State Bank of India in the year 1955.  It is done when the government of India took control of this Imperial Bank taking 60% of its stake.

This makes it the oldest commercial bank on the Indian subcontinent.

 

Services provided by the State Bank of India

Savings Account – State Bank of India enables us to open and handle a savings account.  Various services under savings account include deposits and withdrawals.

Current Account – Current Account is used by various Business organizations for operating their day to day transactions.  SBI provides the facility of having a current account much easier for any business including MSMEs.

ATM Services – ATM services provided by SBI are used to deposit and withdraw cash.  However, it has a certain limit for which these transactions can be made.

If the withdrawal is to be made in an SBI ATM, the maximum limit allowed is Rs 40,000/-.  There is also a security measure taken by the SBI, which enables the need for an OTP for withdrawal of an amount of Rs 10,000/- or more.

If the withdrawal is to be made in an ATM other than the SBI ATM, the maximum allowable limit is Rs 10,000/-

Debit Cards – Debit card services are provided to every account holder which enables easier monetary transactions.  With a debit card, you can withdraw cash, use it for shopping, make online payments etc.

Credit Cards – SBI provides credit services in the form of a Credit card which has a limit depending on the credit score of the borrower.

Internet Banking – Internet Banking helps in online money transfer and also for making online payments.  It is simply an electronic model of the banking system which can be done at our convenience.

Safe Deposit Locker – Customers can place their gold ornaments or any important household documents in the locker provided by the SBI by charging yearly rent through the fixed deposit.

Fixed Deposits – Fixed deposits are the facility given by SBI for their existing customers with a yearly payment of interest.

Recurring Deposits – Recurring deposit is one type of saving method which enables the customer to make a deposit every month for an agreed amount with certain tenure.

Loans – There are various credit facilities to the customers for various purposes.  These loans can be taken as per their requirement by providing the bank with the required collateral.  The various loans provided by SBI are:

  • Personal loan
  • Home loan
  • Business loan
  • Loan against property
  • Car loan
  • Gold loan
  • Loan against Shares
  • MUDRA loan

Smart Cards – SBI provides smart cards which are used for various purposes.  They are provided as a reward for their banking transactions.  The most popular SBI smart cards are:

  • Gift card
  • Smart Pay-out
  • State Bank eZ Pay Card
  • State Bank Achiever Card
  • State Bank Virtual Card
  • VISA Foreign Travel Card
  • MasterCard Foreign Travel Card

Foreign Inward Remittance

Green remit card

sbi INTOUCH

NO Queue Mobile App

History of the State Bank of India

The Bank of Calcutta was renamed the Bank of Bengal which was established on 2nd June 1806.  The Bank of Bengal was one of the three Presidency banks.  The other two banks are the Bank of Bombay and the Bank of Madras.

All the three Presidency banks were joint-stock companies which resulted in the royal charters.

These three banks had the exclusive right of issuing paper currency till the year 1861.  After that, that right was taken over by the Indian Government.

The presidency banks have come together and amalgamated on the 27th January, 1921andc the new banking entity was named the Imperial Bank of India.

The central bank has then acquired the controlling interest in the Imperial bank of India making it into the State Bank of India.

It was on the date 1st July 1955, the Imperial Bank of India has become the State Bank of India.

Subsidiaries of the State Bank of India

SBI provides many banking products in India and overseas, including products aimed at non-resident Indians.

It has 57 zonal offices and 16 regional hubs located throughout India in important cities.

It has over 24,000 branches in India.  As per the statistics of 2014-15, the State Bank of India had 191 branches overseas across the 36 countries having the largest presence in the foreign market among Indian banks.

Its foreign subsidies include:

  • SBI Australia
  • SBI Bangladesh
  • SBI Bahrain
  • SBI Botswana
  • SBI Canada Bank
  • SBI China
  • SBI (Mauritius) Ltd
  • Nepal SBI Bank Ltd
  • SBI Sri Lanka
  • SBI South Korea
  • SBI South Africa
  • SBI UK Ltd
  • SBI USA

Other than its associate banks, SBI has few non-banking subsidiaries.  They include:

  • SBI Capital Markets Ltd
  • SBI Cards and Payments Services Pvt Ltd
  • SBI Life Insurance Company Limited
  • SBI Mutual Fund

YesBank – In March 2020, SBI has acquired 48.2% of the shareholdings of the Yes Bank as a part of RBI directed rescue deal.

Listing and shareholdings o the State Bank of India

The equity of SBI shares is listed on the Bombay Stock Exchange and the National Stock Exchange of India.  Also, its Global Depository Receipts have been listed on the London Stock Exchange.

The values of the shareholdings of various shareholders are:

  • Government of India 92%
  • FIIs / GDRs / OCBs / NRIs 94%
  • Banks and Insurance Companies 63%
  • Mutual Funds and Unit Trust of India 72%
  • Others 79%