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Home , Bank of Bombay, Bank of Bombay (1720), Bank of Calcutta, Imperial Bank of India, State Bank of Hyderabad, State Bank of Indore

DEPARTMENT OF BCOM BANKING &

SUBJECT: INDIAN BANKING SYSTEM TOPIC: UNIT II – STATE OF STAFF IN CHARGE: Dr.R.MAHARAJOTHI PRIYA Associate Professor & Head STATE UNIT - 2

▪ The (SBI Bank) was established in 1806, in . Three years after that, it acquired its charter and Brief History was re-designed as Bank of Bengal in 1809. It was the very first joint-stock bank of India, which the Bengal Government sponsored. ▪ The State Bank of India is an Indian multinational, public sector banking and statutory body. It is a government corporation statutory body Brief History headquartered in , . SBI is ranked as 216th in the Fortune Global 500 list of the world's biggest corporations of 2018. ▪ The bank descends from the , founded in 1806, via the , making it the oldest in the Indian subcontinent. The merged into the other two "presidency " in British India, the Bank of Calcutta and the , to form the Imperial Bank of Brief History India, which in turn became the State Bank of India in 1955. ▪ The Government of Indiatook control of the Imperial Bank of India in 1955, with (India's ) taking a 60% stake, renaming it the State Bank of India. MISSION & VISION Chairman Shri Shri Chandan Sinha Director ▪ The State Bank of India has been established to operate on the normal commercial principles, with the only difference that, unlike other commercial banks in the country, it takes into Objectives consideration and responds in a progressively liberal manner the financial requirements of cooperative institutions and small scale industries, particularly in the rural areas of the country. ▪ (i) To act in accordance with the broad economic policies of the government; ▪ (ii) To encourage and mobilise savings by opening branches in Main objectives rural and semi-urban areas and to promote rural credit; ▪ (iii) To establish government partnership in the provision of cooperative credit; ▪ (iv) To extend financial help for the establishment of licensed warehouses and cooperative marketing societies; Main objectives ▪ (v) To provide financial help to the small scale and cottage industries; ▪ (vi) To provide remittance facilities to the banking institutions. ▪ It acts as the government’s bank, i.e., it collects money and makes on behalf of the government and manages public debt. ▪ (ii) It acts as the bankers’ bank. It receives deposits from and gives loans to Main functions commercial banks. ▪ It also acts as the clearing house for the commercial banks, rediscounts the bills of exchange of the commercial banks and provides remittance facilities to the commercial banks. ▪ It receives deposits from the public. ▪ It gives loans and advances against Ordinary eligible securities Banking ▪ It invests its surplus funds in government Functions securities, railway securities and securities of corporations and treasury bills. ▪ It buys and sells gold and silver. ▪ It acts as agent of cooperative banks. Other Functions ▪ It draws bills of exchange and grants letters of credit payable out of India. ▪ i. Capital: The state Bank of India has an authorised capital of Rs. 20 crore ▪ The shares of the State Bank are held by the Reserve Bank, insurance companies and the general public Organisation of ▪ Management: under the control of a Central Board of State Bank of Directors consisting of 20 members. ▪ Subsidiary Banks: Through the State Bank of India India (Subsidiary Banks) Act, 1959, major state- associated banks were converted into subsidiary banks of State Bank of India. ▪ (a) The State Bank of Bikaner and Jaipur; ▪ (b) The State Bank of ; At present, ▪ (c) The ; there are seven ▪ (d) The ; subsidiary banks ▪ (e) The State Bank of ; ▪ (f) The State Bank of ; and ▪ (g) The . ▪ Deposit MobilisationThere has been an increasing trend with regard to mobilisation of deposits by the Achievements of State Bank of India State Bank of ▪ Credit Expansion: The progress in the field of credit India: expansion has also been considerable over the years (A) General ▪ Branch Expansion: The number of branches of the Progress: State Bank of India has also grown remarkably since its establishment. ▪ India’s largest Bank State Bank of India (SBI) has announced the launch of YONO Present Position Cash through which customers can of State Bank withdraw money from ATMs Group without using a card.... This Cardless Cash Withdrawal process works with two-factor authentication and eliminates the risk of skimming and cloning.

The customers have to set a 6-digit Yono PIN for withdrawing cash through the Yono app. Once the process is initiated the customer will receive a 6- digit reference code via SMS, which will then have to be entered into a Yono Cash Point....

The cash withdrawal must be completed within the next 30 minutes at an ATM using both the PIN and the reference number....

ATMs enabled with this service will be termed as Yono Cash Point.

This cardless cash withdrawal will address the concerns over using debit cards at ATMs for cash withdrawals by eliminating the possible associated risks and also maximizes convenience and enhances the banking experience for its cust... Profits, Efficiency and Capital Adequacy:

Over the years, the SBI continued to show better performance in terms of profits, efficiency and capital adequacy

International Banking: As part of this exercise, State Bank of India (SBI) is in the process of closing down nine branches, said its Present Position Managing Director Pravin K. Gupta. of State Bank India's largest public sector lender operates in Group about 36 countries with nearly 190 branches. Technology Upgradation and Consumer Services:

Send money overseas from India using onlineSBI international money transfers. The State Bank of India (SBI) is the largest bank in India. It's a government-owned public sector organisation with more than 18,000 branches all over the country. 2555 computerised branches operating in 620 centres and covering 76% of the Bank’s domestic business; (b) Network of 100 ATMs in 8 cities; (c) Internet banking covering 35 branches by March 2002; (e) Tele-banking; (f) Remote banking for corporates; (g) State Bank electronic system (STEPS) to facilitates instantaneous electronic transfer of funds; Paid up capital & reserves of the bank increased from Rs.15224 crore on 2001-2 to Rs.64986 crore in 2010-11. (ii) Deposits of the bank increased from Rs. 270560 crore in 2001-2 to Rs. 933933 crore in 2010-2011. progress and (iii) Advances of the bank increased from Rs. performance of 120806 crore in 2001-2 to Rs. 756720 crore In the State Bank of 2010-11. India since 2001: (iv) Number of domestic offices of the bank increased from 9034 in 2001-02 to 13542 in 2010- 11 and of foreign offices increased from 51 in 2001-02 to 1565 in 2010-11. Net profits of the bank increases from Rs. 2432 crore in 2001-02 to Rs. 8265 crore in 2010-11. progress and (vi) Capital-adequacy ratio moved from performance of 13.4% in 2001-2 to 10.7% in 2010-11. the State Bank of (vii) Net NPA to net advances ratio has India since 2001: fallen from 5.6% in 2001-2 to 1.6% in 2010- 11. State Bank and Rural Credit: The State Bank had made remarkable progress in the field of rural credit. Working and Since its establishment, it has been making progress tremendous efforts to develop rural credit by extending credit facilities to cooperative institutions and agriculturists. Expansion of Rural BranchesThe branch expansion of the State Bank has been largely rural – oriented. Out of the total 12486 branches of the State Bank Group at the end of March 1990, 5811 (i.e., 44.8%) were located in Working and the rural areas with population less than progress 10,000; 3483 (i.e., 27.9%) were in semi-urban areas with population 10,000 to less than 1 lakh; and 3192 Agricultural FinanceThe State Bank has been extending financial help to agriculture. In 1969, the total agricultural advances by the State Bank were Rs. 92 crore ▪ The Bank has contributed to the spread of minor irrigation schemes; The State Bank of India ▪ (ii) To increase productivity at the farm level, the Bank has identified and is provides production finance directly to the farmers. expanding its ▪ (iii) To develop dryland farming, the Bank- (a) grants involvement in the loans for agricultural development in dryland areas, following critical areas in and (b) prepares and finances dryland farming projects agricultural lending: in compact areas on the watershed basis. ▪ The bank finances the farmers to install drip irrigation schemes in , Tamil Nadu and Maharashtra. ▪ (v) The Bank provides assistance to farmers to take up cultivation on waste lands under social forestry schemes for raising nurseries and planting of trees for fuel, fodder, etc. ▪ (vi) The Bank provides financial help for modernising agricultural practices and raising farm productivity through the use of tractors and other agricultural implements. ▪ Village Adoption Schemea village is selected for development by meeting its complete financial requirements, including the requirements of the farmers, artisans and others. ▪ Integrated Rural Development Programme: Integrated rural development scheme aims at all round and integrated development (i.e., economic, social, cultural, etc.) of the rural areas. ▪ Regional Rural Banks: Regional rural banks have been started with a view to provide credit to the small and marginal farmers and other weaker sections of the society. The State Bank is providing financial assistance to these banks. ▪ Agricultural Development Branches: An important feature in the field of agricultural financing by the State Bank is the expansion of special agricultural development branches. These branches aim at financing all – round development of agriculture and function in close cooperation with Agricultural Refinance Development Corporation (ARDC), now called National Bank for Agriculture and Rural Development (NABARD). ▪ Short-Term Credit to Cooperative Banks: ▪ Assistance to Land Development Banks: ▪ Finance for Marketing and Processing Societies: ▪ Warehousing Finance: ▪ . Industrial Finance:

▪ Finance to Small Scale Industries:

Other facilities provided by the Bank

▪ technical and financial consultancy

▪ interest – free loans repayable on a long – term basis to the State Bank and needy entrepreneurs to set up new small- scale units.

Industrial ▪ conducts Entrepreneurial Development Programmes to Finance: promote entrepreneurship ▪ assist the export efforts of the small – scale industrialists - Packing Credit Guarantee Scheme

▪ increase opportunities for self – employment

▪ technology upgradation of small and medium enterprises, ▪ The State Bank of India has been progressing well in the right direction. It has made remarkable achievements in the fields of expanding banking Conclusion facilities in the rural and semi- urban areas, and providing financial help to agriculture, cooperative institutions and small scale industries.