State Bank of India
State Bank of India
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.On 7 October 2013, Arundhati Bhattacharya became the first woman to be appointed 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