Organisational changes Organisational changes in State Bank Of Indiain State Bank Of India

BY:BY:

SNEHIL JAISWAL (106)SNEHIL JAISWAL (106)

PGDM, 1PGDM, 1stst Year Year

EvolutionEvolution

Origin- first decade of the 19Origin- first decade of the 19thth century with century with establishment of the Bank of Calcutta in Calcutta on establishment of the Bank of Calcutta in Calcutta on 2 June 1806.2 June 1806.

Presidency Banks of Bengal, Bombay and Madras Presidency Banks of Bengal, Bombay and Madras with 70 branches merged in 1921, form Imperial with 70 branches merged in 1921, form Imperial Bank of India. Bank of India.

In 1951, First Five Year Plan launched, a state-In 1951, First Five Year Plan launched, a state-partnered and state-sponsored bank was created by partnered and state-sponsored bank was created by taking over the Imperial Bank of India.taking over the Imperial Bank of India.

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State Bank of India Act was passed in 1955 State Bank of India Act was passed in 1955 and it started as a bank with 480 offices, and it started as a bank with 480 offices, comprising branches, sub offices and three comprising branches, sub offices and three Local Head Offices inherited from the Local Head Offices inherited from the Imperial Bank. Imperial Bank.

Small Scale IndustriesSmall Scale Industries

Playing a vital role in the development of Playing a vital role in the development of small scale industries since 1965small scale industries since 1965

Bank has financed over 8 lakhs SSI units in Bank has financed over 8 lakhs SSI units in the country the country

It has 55 specialised SSI branches, 99 branches It has 55 specialised SSI branches, 99 branches in industrial estatesin industrial estates

Reason for set upReason for set up

The State Bank of India was destined to act as The State Bank of India was destined to act as the pacesetter in the concept of purposeful the pacesetter in the concept of purposeful banking subserving the growing and banking subserving the growing and diversified financial needs of planned diversified financial needs of planned economic development and thus lead the economic development and thus lead the Indian banking system into the exciting field Indian banking system into the exciting field of national development.of national development.

Gradual change…Gradual change… From merely serving financial needs and pacing towards From merely serving financial needs and pacing towards

economic development, SBI has been actively involved since economic development, SBI has been actively involved since 1973 in non-profit activity called Community Services 1973 in non-profit activity called Community Services Banking. Banking.

All SBI branches and administrative offices throughout the All SBI branches and administrative offices throughout the country sponsor and participate in large number of welfare country sponsor and participate in large number of welfare activities and social causes. Our business is more than banking activities and social causes. Our business is more than banking because we touch the lives of people anywhere in many ways. because we touch the lives of people anywhere in many ways.

Our commitment to nation-building is complete & Our commitment to nation-building is complete & comprehensive.comprehensive.

Post 1961, there are 972 specialized branches which Post 1961, there are 972 specialized branches which have been set up in different parts of the country have been set up in different parts of the country exclusively for the development of agriculture exclusively for the development of agriculture through credit deployment. through credit deployment.

Activities covered range from crop production , Activities covered range from crop production , horticulture , plantation crops, farm mechanization, horticulture , plantation crops, farm mechanization, etcetc

There are farmers’ meet in villages to explain to There are farmers’ meet in villages to explain to farmers about various schemes offered by the farmers about various schemes offered by the bankbank..

Agriculture/Rural Agriculture/Rural

ctd…ctd… SBI has agri specialists in various disciplines SBI has agri specialists in various disciplines

to handle projects/ guide farmers in their agri to handle projects/ guide farmers in their agri ventures.  ventures. 

Advances are given for very small activity Advances are given for very small activity covering poorest of the poor to hitech covering poorest of the poor to hitech activities activities

SBI is the leader in agri finance in the country SBI is the leader in agri finance in the country with a portfolio of Rs. 18,000 crs in agri with a portfolio of Rs. 18,000 crs in agri advances to around 50 lac farmers.advances to around 50 lac farmers.

Micro financeMicro finance

SBI has taken up SHG (Self help group) SBI has taken up SHG (Self help group) movement as a mission in 1976. A noble movement as a mission in 1976. A noble mission to reach those families who were mission to reach those families who were hitherto having no access to the credit by any hitherto having no access to the credit by any formal financial institution and, therefore, formal financial institution and, therefore, were depending on informal sources and were depending on informal sources and moneylenders moneylenders

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As on March 2006, SBI’s branches spread As on March 2006, SBI’s branches spread throughout the length and breadth of the throughout the length and breadth of the country have opened 6,30,067 Savings Bank country have opened 6,30,067 Savings Bank account of SHGs account of SHGs

Initiatives and incentivesInitiatives and incentives

Sensitisation of staffSensitisation of staff Special training programmes in SHGs are Special training programmes in SHGs are

being conducted at 54 training centres of being conducted at 54 training centres of the Bankthe Bank

Close liaison with NGOsClose liaison with NGOs SHG cellsSHG cells Lending to NGOs / Federations of SHGsLending to NGOs / Federations of SHGs

Ctd…Ctd… Sahayog NiwasSahayog Niwas SBI Life- ShaktiSBI Life- Shakti Rural training institutesRural training institutes Appreciation by GovernmentAppreciation by Government SamanwitaSamanwita

Rural Rural BanksRural Rural Banks

Sponsored 30 RRBs, operate in 102 districts of Sponsored 30 RRBs, operate in 102 districts of 16 States viz. Andhra Pradesh , Arunachal 16 States viz. Andhra Pradesh , Arunachal Pradesh, Assam, Bihar, Chattisgarh, Himachal Pradesh, Assam, Bihar, Chattisgarh, Himachal PradeshPradesh

Network of 2336 branchesNetwork of 2336 branches 2020 of these branches (86 %) are in remote 2020 of these branches (86 %) are in remote

rural centers rural centers

NRIsNRIs

Special features for saving bank accountSpecial features for saving bank account Term depositsTerm deposits Car loan scheme, purchase of new passenger Car loan scheme, purchase of new passenger

cars, Multi Utility Vehicles (MUVs) and SUVscars, Multi Utility Vehicles (MUVs) and SUVs No limit for loan No limit for loan

International bankingInternational banking

Network of 67 offices/branches in 29 countriesNetwork of 67 offices/branches in 29 countries Corporate lending, loan syndications, Corporate lending, loan syndications,

merchant banking, short-term financing and merchant banking, short-term financing and remittances. remittances.

Off shore banking unit (OBU)Off shore banking unit (OBU)

First OBU Special Economic Zone, Andheri First OBU Special Economic Zone, Andheri (East), 17th July 2003 (East), 17th July 2003

Raise funds in convertible foreign currency Raise funds in convertible foreign currency Foreign currency accounts and with other Foreign currency accounts and with other

OBUs in India OBUs in India Customised loan and liability products for Customised loan and liability products for

client benefitclient benefit

ATMsATMs

Over 8000 ATMs Over 8000 ATMs State Bank ATM-cum-Debit(Cash Plus) card. State Bank ATM-cum-Debit(Cash Plus) card.

No need to carry cashNo need to carry cash Tie up with other banks Tie up with other banks Recahrge mobiles at ATMRecahrge mobiles at ATM Pay MTNL billsPay MTNL bills Fees of collegesFees of colleges Donate to temple trustsDonate to temple trusts

International ATM cardInternational ATM card

Convenience to the customers traveling Convenience to the customers traveling overseas overseas

Can be used as Domestic ATM-cum-Debit Can be used as Domestic ATM-cum-Debit Card Card

Available at a nominal joining fee of Rs. 200/- Available at a nominal joining fee of Rs. 200/-

Internet bankingInternet banking

Enables its retail banking customers to operate Enables its retail banking customers to operate their accounts from anywheretheir accounts from anywhere

Self-account funds transfer across India.Self-account funds transfer across India. Third party transfers in the same branchThird party transfers in the same branch New account openingNew account opening Demand Draft requestsDemand Draft requests New Cheque-book request New Cheque-book request

Ctd…Ctd… Railway tickets booking, Railway tickets booking, Utility bill paymentsUtility bill payments LIC and other insurance premia payments, LIC and other insurance premia payments, SBI Mutual funds Investments SBI Mutual funds Investments Credit card dues payments,Credit card dues payments, Deposit taxesDeposit taxes Donations to Red Cross and such other Donations to Red Cross and such other

organisationsorganisations

Future plansFuture plans

SBI has set for itself an ambitious target of SBI has set for itself an ambitious target of credit linking 1 million SHGs up to March credit linking 1 million SHGs up to March 2008.2008.

The Bank has started to leverage our vast SHG The Bank has started to leverage our vast SHG network for various services beyond credit network for various services beyond credit delivery.delivery.

Thank YouThank You