History of State Bank of India

Incorporated on July 1, 1955, the State Bank of India (SBI) is an Indian multinational, public sector banking and financial services institution. It is headquartered in Mumbai. SBI is one of India's largest banks, with a 1/4th market share, serving more than 48 crore customers. In 2017, SBI was merged with five of its associate banks: State Bank of Mysore (SBM), State Bank of Bikaner and Jaipur (SBBJ), State Bank of Travancore (SBT), State Bank of Patiala (SBP) and State Bank of Hyderabad (SBH). In December 1993, SBI released its IPO with 12,40,00,000 equity shares at a premium of ₹90 per share with a face value of ₹10. Of these, 2,45,00,000 shares were reserved for allotment on a preferential basis to Indian Mutual Funds and Indian Financial Institutions. The remaining were issued to the public. In the customer loyalty survey 2006-07 conducted by 'Business World', SBI was ranked number one in all parameters of service orientation, customer satisfaction, customer loyalty, customer care/call centre, and home loans. SBI was honoured with several awards, such as India’s Best Annual Report Awards-2022 by Free Press Journal, Best Security Operations Centre of the Year and Cyber Security Awareness Award from NASSCOM -DSCI, Gold & Silver awards in The ET HR World Future Skill Awards, and it also won Gold category in Public Sector Bank in Outlook Money Awards 2022. The Government of India holds 57.5% shares in SBI and is the largest promoter of the bank. The Life Insurance Corporation Of India holds about 8.8% shares in SBI, followed by SBI Mutual Fund Schemes with 3.1%. Under FII, the Government Of Singapore has 1% shares of SBI.

SBI Business Segments

SBI primarily operates in various business segments, which include:

• Personal Banking: It includes personal banking products and services like savings accounts, salary accounts, home loans, personal loans, auto loans, education loans, loans against securities, gold loans, debit cards, fixed deposits, government schemes and more. They also offer digital services, including digital lending, internet banking, and much more.
• Business Banking: This category includes current accounts, cash management products and services, healthcare business loans, corporate banking units like Corporate Accounts Group, Mid Corporate Accounts Group and Stressed Assets Management Group, SME loans and deposits, and more.
• NRI Banking: The bank offers services to NRI customers as well. The products and services range includes loans, accounts, investments, remittances, etc.
• International Banking: The bank offers international banking services like commercial loans, retail banking, and correspondent banking services.
• Agricultural and Rural: The bank offers crop loans, gold loans, and micro-credit options under this category.
• SBI Wealth: This segment offers personalised banking and wealth management services for certain eligible individuals.

SBI offers a broad range of products and services to individuals, large corporations, commercial enterprises, public bodies, and institutional customers via its branches, outlets, subsidiaries, associate companies, and joint ventures. SBI has more than 22,405 branches, 76,089 Business Correspondent (BC) outlets, and 65,627 ATMs/ADWMs (Automated Deposit cum Withdrawal Machine). The bank has a worldwide presence, with 235 overseas offices in over 29 countries. SBI offers their products and services digitally as well through their app called YONO. It has diversified its businesses through various subsidiaries, such as:

• SBI Cards and Payment Services Limited: This is a publicly-listed company where SBI holds a 68.98% stake. The company issues credit cards to customers.
• SBI Life Insurance Company: This is a bancassurance company where SBI holds 55.45% of ownership in the company. SBI Life is a publicly listed company.
• SBI General Insurance Company Limited: SBI holds a 69.95% stake in this company, which offers various insurance products.

SBI Management Team

Dinesh Kumar Khara, Chairman Dinesh Khara is the Chairman of the State Bank of India. He joined SBI in 1984 as a Probationary Officer and worked in other key positions, including MD (Global Banking & Subsidiaries), MD (Associates & Subsidiaries), MD & CEO (SBI Mutual Funds) and Chief General Manager - Bhopal Circle. He did his PG in Commerce from the Delhi School of Economics and MBA from the Faculty of Management Studies (FMS), Delhi. Challa Sreenivasulu Setty, Managing Director (International Banking, Global Markets and Technology) In January 2020, Challa Sreenivasulu Settyjoined the SBI Board as Managing Director, and currently, he heads the International Banking, Global Markets and Technology branches of the Bank. Prior to this, he was in other key positions, including Deputy Managing Director - Stressed Assets Resolution Group, Chief General Manager and General Manager of Corporate Accounts Group, Deputy General Manager in Mid Corporate Group and VP and Head (Syndications) in SBI, New York Branch. He is a Certified Associate of the Indian Institute of Bankers.

SBI Corporate Actions

Stock Split SBI announced a stock split at the face value of its shares from ₹10 to ₹1. The ex-date was November 20, 2014, and the record date was November 21, 2014.