This document is a project report submitted by Nita Patel, an MBA student at Veer Narmad South Gujarat University. The report details a project conducted at the State Bank of India's Bhadeli branch in Valsad on the topics of banking and insurance. Nita thanks the various professors, bank employees, and family members who provided guidance and support during the project.

1. 1
AProjectReport
On
BankingandInsurance
Undertakenat
StateBankofIndia
 
By
NitaPatel
(MBASEMII)
(RollNo.10)
VEERNARMADSOUTHGUJARAT
UNIVERSITY
SURAT395007
DBIM


DECLARATION

2. 2
IdeclaredthattheprojectentitledBankingandInsurance.
SubmittedforthepartialfulfillmentoftheSEMIIinMasterof
BusinessAdministration[MBA]degreeismyoriginalworkandcarried
outatSBI,BhadeliBranch,Valsad.
Thisprojectoranypartofithasnotbeenpreviouslysubmittedfor
anydegreetoanyotherinstitutionoruniversity.
NITAPATEL
Date:13/07/2013
Place:SURAT
ACKNOWLEDGEMENT
IhaveagreatfeelingofsatisfactionwhenIamthankingthosepersonswithoutwhomthis
projectmightnothavebeencompleted.Thepeople,whohavehelpedme,guidemeand
encouragedmetosuccessfullycompletemyproject,thosewhohavehelpedandsupported
meineveryaspectsofmylife.
IamthankfultoheadofDepartmentDr.RenukaGargewhohashelpedusinourproject
andtoallmyprofessorsandstaffmembersoftheDepartmentwhohelpeddirectlyor
indirectlyinmyproject.

3. 3
IexpressmydeepdenseofgratitudetoMr.B.G.Patel(BranchManagerofSBIBhadeli,
Valsad)andMr.H.M.Patel,forhiscontinuousguidanceandinspirationinmylearning.Itis
duetohiscooperationthatIhavecompletedthisprojecttomysatisfaction.
IamalsothankfultoMr.R.S.Chauhan(AssistantGeneralManagerofSBIBhadeli,Valsad),
Mr.H.M.Patel,andotheremployeefortheirsupport.
NowIwanttoshowmygratitudetowardsallofthemwhohavealwaysbeensupportingme
fortheentireworkIIhavedone.AndatlastIwanttothanksmyparentsforgivingmesucha
wonderfulopportunity,helpedandsupportedmethroughoutmylife.Theyhavebeen
inspirationformylife.
IamverygladthateverymembersoftheStateBankofIndiaareveryCooperativeanddo
helpmetofulfillmyproject.
Finally.Iexpressmygratitudetoallmywellwishersandfriends,whohavedirectlyor
indirectlyhelpedmeinmyprojectwork.

NITAPATEL

EXECUTIVESUMMARY
Forthestatebankofindiatheircustomersareveryimportantandaimofthaebankwas
thatAcustomeristhemostimportantvisitorontheirpremises.Heisnotaninterruptionof
theirwork.Heisnotanoutsiderintheirbusiness.Heispartofit,theyarenotdoinghima
favourbyservinghim.Heisdoingthemafavourbygivingthemanopportunitytodoso.

4. 4
Theybelievethatacustomerisnotsomeone,toarguewith.Nobodyeverwonan
argumentwithacustomer.Acustomerispersonwhobringsthembyhiswants.Itistheirjob
tohandlethemprofitablytohimandthemselves.
Thefirstbankswerethemerchantsofancientworldthatmadeloanstofarmersand
tradersthatcarriedgoodsbetweencities.Thefirstrecordsofsuchactivitydatesbackto
around2000BCinAssyriaandBabylonia.LaterinancientGreeceandduringtheRoman
Empirelenderbasedontempleswouldmakeloansbutalsoaddedtwoimportantinnovations
thatofaccepteddepositsandchangingmoney.DuringthisperiodthereisancientChinaand
separatelyinancientIndia.
Banking in the modern sense of the word can be traced to medieval and early
RenaissanceItaly,totherichcitiesinthenorthlikeFlorence,VeniceandGenoa.TheBardi
and Peruzzi families dominated bankingin 14th
 century Florence, establishingbranchesin
manyotherpartsofEurope.PerhapsthemostfamousItalianbankwastheMedicibank,set
upbyGiovanniMediciin1397.
 The development of banking spread through Europe and a number of important
innovationstookplaceinAmsterdamduringtheDutchRepublicinthe16th
centuryandin
Londoninthe17th
century.Duringthe20th
centurydevelopmentsintelecommunicationsand
computingresultinginmajorchangestowaybanksoperatedandallowingthemdramatically
increase in size and geographic spread. The Late2000s financial crisis saw significant
numberofbankfailures,includingsomeoftheworld’slargestbanksandmuchdebateabout
bankregulation.
StateBankofIndiaisthelargestIndianbankingandfinancialservicescompany(by
turnoverandtotalassets)withitsheadquartersinMumbai,India.Itisstateowned.Thebank
tracesitsancestrytoBritishIndia,throughtheImperialBankofIndia,tothefoundingin
1806 of the Bank of Calcutta, making it the oldest commercial bank , in the Indian
Subcontinent. Bank of Madras merged into the other two presidency banks, Bank of and
BankofBombaytoformImperialBankofIndia.ThegovernmentofIndianationalizedthe
Imperial Bank of India in 1955, with the reserve Bank of India taking a 60% stake, and
renamedittheStatebankofIndia.In2008,thegovernmenttookoverthestakeheldbythe
ReserveBankofIndia.
SBILifeInsuranceisajointventurebetweenStateBankofIndiaandBNPParibas
AssuranceofFrance.Itisthefirstprivatelifeinsurancecompanytomakeprofitforthree
consecutive years, and to receive AAA rating from CRISIL signifying highest financial
strength.In2007surveyconductedbyACNielsenORGMARGandEconomictimes,ithas
beenvotedasthemosttrustedprivatelifeinsurancebrand.
As of  31st
 December 2009, the bank had 151 overseas offices spread over 32
countries.IthasbranchesoftheparentinColombo,Dhaka,Frankfurt,HongKong,Tehran,
Johannesburg, London, Los Angeles, Male in the Maldives, Muscat, New York, Osaka,
SydneyandTokyo.IthasoffshorebankingunitsintheBahamas,Bahrain,andSingapore,
andrepresentativeofficesinBhutanandCapeTown.ItalsohasanADBinBoston,USA.

5. 5
TABLEOFCONTENT
ChapterNo. Particulars PageNo.
Acknowledgement
Certificate
Declaration
Chapter1 1.1Objectiveofthestudy
1.2Limitationofthestudy
1.3ResearchMethodology
Chapter2 Introduction

6. 6
Chapter3 ProfileoftheBank
Conclusion
Bibiliography
Experience

Chapter1
1.1OBJECTIVESOFTHESTUDY
ThemainobjectiveofthisprojectispartialfulfillmentofMBAdegree.
TounderstandtheBankingSystem.

7. 7
To study how new distribution channels such as Internet  Banking, ATM facility,
PhoneBankinghavechangedthefaceoftheBankingIndustry.
Tounderstandthebankingsystemaswellasinsurancescheme.
1.2LIMITATIONOFTHESTUDY
Thestudycouldnotmakethatcomprehensiveduetotimeconstraints.
Whentheygavesomedetails,theysometimesusedverytechnicalwordswhichwere
difficultformetounderstandit.
Duetobusyscheduleofofficerswasnotprovidedwithinformationuptothatextent
thatonerequires.
Thereislimitedtimeperiodfortraining,sothatIcannotgotalltheinformationofthe
banking.
1.3RESEARCHMETHODOLOGY
This project report is based on the two types of the data i.e. Primary Data and
SecondaryData.
AspertheResearchMethodology,IhavecollectedtheinformationfromPrimaryas
wellasSecondarysources.
ForthePrimaryDatahavetakenthehelpofMr.B.G.Patel(BranchManager,SBI)
NowformySecondaryDataIhavetakenhelpofbooks,magazinesandwebsites.The
mostofdatathatincludedintheprojectisfrombooksandwebsites.
1.4SECONDARYDATACOLLECTEDFROM
Various Websites
www.statebankofindia.com
www.wikipedia.org
www.moneycontrol.com

8. 8
www.economictimes.com
www.sbilifeinsurance.com
www.sbigeneral.com
Chapter2
INTRODUCTIONOFBANKING
Thefirstbankswerethemerchantsofancientworldthatmadeloanstofarmersand
traders that carried goods between cities. The first records of such activity dates back to
around2000BCinAssyriaandBabylonia.LaterinancientGreeceandduringtheRoman

9. 9
Empirelenderbasedontempleswouldmakeloansbutalsoaddedtwoimportantinnovations
thatofaccepteddepositsandchangingmoney.DuringthisperiodthereisancientChinaand
separatelyinancientIndia.
 Banking in the modern sense of the word can be traced to medieval and early
RenaissanceItaly,totherichcitiesinthenorthlikeFlorence,VeniceandGenoa.TheBardi
and Peruzzi families dominated bankingin 14th
 century Florence, establishingbranchesin
manyotherpartsofEurope.PerhapsthemostfamousItalianbankwastheMedicibank,set
upbyGiovanniMediciin1397.
  The development of banking spread through Europe and a number of important
innovationstookplaceinAmsterdamduringtheDutchRepublicinthe16th
centuryandin
Londoninthe17th
century.Duringthe20th
centurydevelopmentsintelecommunicationsand
computingresultinginmajorchangestowaybanksoperatedandallowingthemdramatically
increase in size and geographic spread. The Late2000s financial crisis saw significant
numberofbankfailures,includingsomeoftheworld’slargestbanksandmuchdebateabout
bankregulation.
StateBankofIndia(SBI)isamultinationalbankingandfinancialservicescompany
based in India. It is a governmentowned corporation with its headquarters in Mumbai,
Maharashtra.AsofDecember2012,ithadassetsofUS$501billionand15,003branches,
including157foreignoffices,makingitthelargestbankingandfinancialservicescompany
inIndiabyassets.ThebanktracesitsancestrytoBritishIndia,throughtheImperialBankof
India,tothefoundingin1806oftheBankofCalcutta,makingittheoldestcommercialbank
in the Indian Subcontinent. Bank of Madras merged into the other two presidency
banks—BankofCalcuttaandBankofBombay—toformtheImperialBankofIndia,which
inturnbecametheStateBankofIndia.GovernmentofIndianationalizedtheImperialBank
ofIndiain1955,withReserveBankofIndiatakinga60%stake,andrenamedittheState
Bank ofIndia.In 2008,thegovernmenttookoverthestakeheldbytheReserveBankof
India.
SBI was ranked 285th in the Fortune Global 500 rankings of the world's biggest
corporationsfortheyear2012.SBIprovidesarangeofbankingproductsthroughitsnetwork
ofbranchesinIndiaandoverseas,includingproductsaimedatnonresidentIndians(NRIs).
SBIhas14regionalhubsand57ZonalOfficesthatarelocatedatimportantcitiesthroughout
thecountry.SBIisaregionalbankingbehemothandhas20%marketshareindepositsand
loansamongIndiancommercialbanks.TheStateBankofIndiawasnamedthe29thmost
reputed company in the world according to Forbes 2009 rankings
and was the only bank
featuredinthe"top10brandsofIndia"listinanannualsurveyconductedbyBrandFinance
andEconomicTimesin2010.

10. 10
2.1BANKINGININDIA
BankinginIndiaoriginatedinthelastdecadesofthe18th
century.ThefirstbankswereThe
GeneralbankofIndia,whichstartedin1786,andBankofHindustan,whichstartedin1790,
botharenowdefunct.TheoldestbankinexistenceinIndiaistheStateBankofIndia,which
originatedinthebankofCalcuttainJune1806,whichalmostimmediatelybecametheBank
of Bengal. This was one of the three presidency banks, the other two being the Bank of
BombayandtheBankofMadras,allthreeofwhichwereestablishedunderchartersfromthe
British East India company. For many years the presidency banks acted as quasicentral
banks,asdidtheirsuccessors.Thethreebanksmergedin1921tofromtheImperialBankof
India,whichuponIndia’sindependence,becametheStateBankofIndia.
Chapter3
PROFILE
OF
STATEBANKOFINDIA

11. 11
StateBankofIndiaisthelargestIndianbankingandfinancialservices
company(byturnoverandtotalassets)withitsheadquartersinMumbai,India.Itisstate
owned.ThebanktracesitsancestrytoBritishIndia,throughtheImperialBankofIndia,to
thefoundingin1806oftheBankofCalcutta,makingittheoldestcommercialbank,inthe
IndianSubcontinent.BankofMadrasmergedintotheothertwopresidencybanks,Bankof
andBankofBombaytoformImperialBankofIndia.ThegovernmentofIndianationalized
theImperialBankofIndiain1955,withthereserveBankofIndiatakinga60%stake,and
renamedittheStatebankofIndia.In2008,thegovernmenttookoverthestakeheldbythe
ReserveBankofIndia.
SBIprovidesarangeofbankingproductsthroughitsvastnetworkofbranchesinIndia
and overseas, including products aimed at nonresident Indians (NRIs). The State Bank
Group,withover16000branches,hasthelargestbankingbranchnetworkinIndia.Italsohas
around 130 branches overseas. With an asset base of $352 billion and $285 billion in
deposits,itisaregionalbankingbehemothandisoneofthelargestfinancialinstitutioninthe
world.IthasamarketshareamongIndiancommercialbanksofabout20%indepositsand
loans.
TheStateBankofIndiais29th
mostreputedcompanyintheworldaccordingtoForbes.
AlsoSBIistheonlybankfeaturedinthecoveted“Top10branchofIndia”listinanannual
surveyconductedbyBrandFinanceandTheEconomicTimesin2010.
TheStatebankofIndiaisthelargestoftheBigFoursbankofIndia,alongwithICICI
Bank,PunjabNationalBankandHDFCBankitsmaincompetitors.
StateBankofIndia(SBI)isamultinationalbankingandfinancialservicescompanybasedin
India.ItisagovernmentownedcorporationwithitsheadquartersinMumbai,Maharashtra.
AsofDecember2012,ithadassetsofUS$501billionand15,003branches,including157
foreign offices, making it the largest banking and financial services company in India by
assets.
The bank traces its ancestry to British India, through the Imperial Bank of India, to the
foundingin1806oftheBankofCalcutta,makingittheoldestcommercialbankintheIndian
Subcontinent. Bank of Madras merged into the other two presidency banks—Bank of
CalcuttaandBankofBombay—toformtheImperialBankofIndia,whichinturnbecamethe
StateBankofIndia.GovernmentofIndianationalisedtheImperialBankofIndiain1955,
withReserveBankofIndiatakinga60%stake,andrenamedittheStateBankofIndia.In
2008,thegovernmenttookoverthestakeheldbytheReserveBankofIndia.SBIwasranked
285thintheFortuneGlobal500rankingsoftheworld's biggestcorporationsfortheyear
2012.

12. 12
SBI provides a range of banking products through its network of branches in India and
overseas,includingproductsaimedatnonresidentIndians(NRIs).SBIhas14regionalhubs
and57ZonalOfficesthatarelocatedatimportantcitiesthroughoutthecountry.
SBIisaregionalbankingbehemothandhas20%marketshareindepositsandloansamong
Indiancommercialbanks.
TheStateBankofIndiawasnamedthe29thmostreputedcompanyintheworldaccordingto
Forbes2009rankingsandwastheonlybankfeaturedinthe"top10brandsofIndia"listinan
annualsurveyconductedbyBrandFinanceandTheEconomicTimesin2010.
 3.1 HISTORYOFSBI

13. 13
TherootoftheStatebankofIndiarestinthefirstdecadeof19th
century,whenthe
BankofCalcutta,latterrenamedtheBankofBengal,wasestablishedon2June,1806.The
BankofBengalwasoneofthreePresidencybanks,theothertwobeingtheBankofBombay
(incorporatedon1st
July1843).AllthreePresidencybankswereincorporatedasjointstock
companiesandweretheresultoftheroyalcharters.Thesethreebanksreceivedtheexclusive
righttoissuePaperCurrencyin1861withthePaperCurrencyAct,arighttheyretaineduntil
the formation of the Reserve Bank of India. The Presidency banks amalgamated on 27
January,1921,andtherecognizedbankingentitytookasitsname:ImperialBankofIndia.
TheImperialBankofIndiaremainedajointstockcompany.
PursuanttotheprovisionsoftheStateBankofIndiaAct(1955),theReserveBankof
India,whichisIndia’scentralbank,acquiredacontrollinginterestintheImperialBankof
India.ThegovernmentofIndiarecentlyacquiredtheReservebankofIndia’sstakeinSBIso
as toremove any conflict ofinterestbecausetheRBIis thecountry’s bankingregulatory
authority.
In 1959, the government  passed the State Bank of India (subsidiary Banks) act,
enabling the State Bank of India to take over eight former state associated banks as its
subsidiaries.On13September2008,thestateBankofSaurashtra,oneofitsassociatebanks,
mergedwiththeStateBankofIndia.
SBIhasacquiredlocalbanksinrescues.Forinstance,in1985,itacquiredtheBankof
CochininKerala,whichhad120branches.SBIwastheacquirerasitsaffiliate,theState
BankofTravancore,alreadyhadandextensivenetworkinKerala.
On1stJulyStateBankofIndiawasconstitutedundertheStateBankofIndiaAct
1955,forthepurposeoftakingovertheundertakingandbusinessoftheImperialBankof
India.TheImperialBankofIndiawasfoundedin1921undertheImperialBankofIndiaAct
1920.TheBanktransactsgeneralbankingbusinessofeverydescriptionincluding,foreign
exchange,merchantbankingandmutualfunds.
1959
OnSeptemberStateBankofIndia(SubsidiaryBank)Actwaspassed.OnOctoberStateBank
ofHyderabadbecomethefirstsubsidiaryofSBI.
1960
Duringthisperiod,StateBankofJaipur,StateBankofBikaner,StateBankofIndore,State
BankofTravancore,StateBankofMysore,StateBankPatialaandStateBankofSaurashtra
becamesubsidiariesofthebank.
1962

14. 14
TheBhorStateBankLtdwasAmalgamatedwiththeBankbringthetotalnumberofminor
Stateassociatedbankssoamalgamatedtofive.AschemeforamalgamationoftheBankof
AundhLtd.,wasalsoapproved.On20thAugust,theUnitBankLtd.Chennaiwastakenover
bytheBank.
1963
InoctoberBranchinLondonbecomebankerstotheIndianHighCommission,therebytaking
overafunctiontillthenperformedbytheofficeofRBI.Oftheotherbusinesstransactedby
theBranch,animportantaspectwasmediumtermloansmostlytoIndianshipping
companies.
1969
OnNovember8ththeBankofBeharLtdwasamalgamated.
1972
Amerchantbankingdivisionwassetupinthecentralofficetocatertopromotionalneedsof
thecorporatesector.
1977
DuringtheyearbankintroducedthePerennialPensionPlanSchemeunderwhichifthe
depositorsmakearegularmonthlypaymentofafixedamountforaperiodof84to132
months,theybecomeeligiblefromthe86thand134thmonthsrespectivelyforgettinga
monthlypensionofpredeterminedamountforever.
Inordertomeetallthedevelopmentalneedsofthevillagesincludingtheirsocialandcultural
needs,thebanklaunchedanintegratedruraldevelopementprogramme,aimedatnotonly
coveringthecreditneedsofagricultureandagriculturalactivitiesandvillageindustries,but
alsohousingandsocialactivities.
1980
BankintroducedthecashCertificateSchemeunderwhichdepositcertificateareissuedfora
fixedperiodonpaymentoftheissuepricespecifiedfortherespectivematurityperiodandthe
facevaluecorrespondingtotheissuepriceplusinterestcompoundedatquarterlyintervalsis
paidonmaturity.ThecertificatesareissuedforthefacevalueofRs100,Rs1000,Rs10,000
andRs50,000maturingafter29,65,84and120months.
1982

15. 15
TheNonResidentInvestmentCellwassetup,whichhadstreamlinedtheworkingoperations
ofthenonresidentinvestmentsectionsatimportantcenters.
1983
SBIlaunchedselfemploymentscheme,forprovidingselfemploymenttoeducated
unemployedyouth.Educatedunemployedyouthsareencouragedtoundertakeself
employmentventuresinindustry,servicesandbusiness.
1984
Thebankprovideneedbasedrehabitationassistancetolargeandmediumsickindustrial
units.
1985
Duringtheyear,companysetupadatabankofsickunitsavailablefortakenoverbyhealthy
units.Witheffectfrom26thAugust,theBankofCochinLtdwith108brancheswasalso
amalgamatedwiththeBank.
(i)AllsharesintheCapitaloftheImperialBankofIndiawasvestedintheRBI.TheSBIwas
registeredwithanAuthorisedcapitalofRs.20crores,andanissuedandpaidupcapitalof
Rs.562,50,000dividedinto562,500sharesofRs.100each.
(ii)Everypersonwhoonthe30thJune,1955,wasregisteredasaholderofsharesinthe
ImperialBankofIndiawaspaidbytheReserveBankofIndia.
44,37,500No.ofsharesissuedatapremiumofRs160pershare.
1986
Attheendoftheyear324sickunitswithanoutstandingofRs1069croreswereassisted.Of
these,107unitswereconsideredviableand60fromthemwereplacedunderregularnursing
programme.
On1stAugustanewsubsidiarynamedSBICapitalMarketwasfunctioningindependently,
tookupleasingbusinessandcertainothernewservices.
100,00,00No.ofsharesissuedataprem.ofRs160pershare.
1987

16. 16
Uptotheendoftheyearthebankhadsponsored30RegionalRuralBankscovering66
backwardandunderbankeddistrictsinthecountry.
Intermsofdeployment,theadvancesportfolioofoverseasofficesrosetoRs5,767crores.
InvestmentsininterbankmoneymarketsandalsoinprimesecuritiesamountedtoRs2,670
croresbytheendoftheyear.
1988
DuringtheyearbankinitiatedUPTECHanIndustrialTechnologyGrouptodirectandguide
programmesaimedatfacilitatingtechnologyupgradation.
Alsoaschemetodevelopentrepreneurshipamongwomanunderthename"ShreeShakti"
waslaunched.Severalconcessionsinrespectofmarginandrateofinteresthavebeenbuilt
intothepackage.ThreepilotprogrammeswerelaunchedatChennai,Calcutta,and
Hyderabad.
On20thSeptember,thebankinaugurated`SBINET,'anintegratedcommunicationproject
aimedatimprovingcustomerservice,operationalefficiencyandadministrativeconvenience.
Thenetworkhasbeendesignedtohandlevoice,faxdataandmanagesthroughthetrunk
routesandexchangesinimportantcentres.
Thebanksponsored30RRB'scovering66divisionsinthecountry.74brancheswereopened
raisingthebranchnetworkto2,306.
1989
SBICAP,intheircapacityasTrusteeandManagerofMutualFund,launchedtwoscheme
viz.,MangnumMonthlyIncomeScheme1989andMagnumTaxServiceScheme1990.
DuringthesameperiodSBIinassociationwithMorganStanleyAssetManagementInc.of
USA,launchedtheIndiaMagnumFund.
1990
NewproductslaunchedduringtheyearincludedaRegularIncomeScheme,offeringan
assuredreturninexcessof12%andthefirstPureGrowthSchemeaimedatcapital
appreciation.ASecondoffshorefundofUS$12millioncalledAsianConvertibleandIndian
FundwaslaunchedinassociationwithAsianDevelopmentBank,Manila.
DuringKharif1990,thebankintroducedanagriculturalcreditcard,knownasSBIGreen
Cardtogivegreaterliquidityandflexibilitytofarmersinprocuringagriculturalinputs.The
schemewasintroducedonapilotbasisin125intensivecentrebranches.

17. 17
Asaton31stMarch,SBIMFhadover3,40,000IndianinvestorsandaboutRs475croresby
wayofinvestibledomesticfunds.
1991
DuringFebruarythebanksetupanewsubsidiarycalledtheSBIFactorsandCommercial
ServicedPvt.Ltd.forrenderingfactoringservicestotheindustrialandcommercialunitsin
WesternIndia.
1992
Thebanksponsored30RRBswithanetworkof3189officescovering102backwardand
underbankeddistrictsofthecountry.AsumofRs15.25croreswascontributedtowardsthe
sharecapitaloftheRRBs.
Duringtheperiodbankintoduced`Stockinvest'scheme.Alsointroduceda`GyanJyoti'that
replacedearliereducationloanschemesandofferssubstantialaugmentedassistanceto
studentspursuinghigherstudies.MoreoverdedicatedNRIbranchesequippedwithStateof
thearttechnologywassetupatMumbaiandDelhitocatertothespecialneedsofNRI
residents.
1993
Duringtheyearasapartofitsoverseasexpansionthebankestablishedrepresentativeoffice
inTashkent.
DuringDecember,thebankissued124,000,000equitysharesofRs.10eachforcashata
premiumof90pershareofwhich245,00,000shareseachwerereservedforallotmentona
preferentialbasistoIndianFinancialInstitutionsandIndianMutualFunds.Balanceissuedto
thepublic.
Simultaneouslyitcameoutwithanotherissueof50,00,00012%unsecuredredeemable
floatingratebondsinthenatureofpromisorynotesofthefacevalueof1000each.
OversubscriptionuponafurtheramountofRs500crores(inallRs1000crores)wastobe
allowed.Thefacevalueofeachbondwouldberedeemedatparattheexpiryof10years
fromthedateofallotment.IntheeventthattheStateBankdecidestoexerciseitsoptionto
callupthebondstheywouldberedeemedattherateof5%attheendof5thyear,at3%at
theendof7thyearand1%attheendof9thyear.
1994

18. 18
358sickunitswiththebankwerereferredtotheBIFRincluding55publicsectorunits.
Approvedrehabilitationpackagesimplementedin87units.
1,80,463No.ofShareskeptinabeyancewereissued.
1995
351sickunitswiththebankwerereferredtotheBIFRincluding66publicsectorunits.
Approvedrehabilitationpackagesimplementedin112units.
683No.ofshareskeptinabeyancewereallotted.
1996
On3rdOctobertheBankIssued261,45,000GDRsamountingto5,22,90,000equityshares.1
GDRisissuedto2equityshares.TheissuepriceofGDRwasUS$14.15perGDR.
1997
Sharesissuedtoemployeesofthebankbearingdistinctivenumbers46,26,00,001to
47,46,00,000willnotbegooddelivery.Therightsissuewasfor12croreequitysharesata
premiumofRs.50aggregatingRs.720croreinadditiontoafurtherissueof1.2croreequity
sharesofRs.10atapremiumofRs.50aggregatingRs.72croreforStateBankemployees.
ThepriceoftherightshadbeenRs.60pershare.
SBISecuritiesLtdthe100percentstockbrokingsubsidiaryofSBI,hasrecentlyreceivedthe
muchawaitedletterofincorporationfromtheRegistrarofCompanies.Followingthis,both
SBIandADBwillpickuptheirrespectivesharesinthenewstockbrokingfirm.SSLwill
haveanequitybaseofRs.50crore.
TheStateBankofIndiahastiedupwithGECapitaltofloataventureinMumbai.StateBank
signedthememorandumofunderstandingwithGECapsinMarch.
StateBankwilltieupwitheitherVISAorMastercardorevenbothforthefranchise
network.GECapsthroughthisjointventurewillbeimpartingtechnology,creditcard
expertiseandpaymentcardmechanism.
1998

19. 19
StateBankofIndiawillkickstartitscreditcardbusinessonJuly1byfloatingtwojoint
ventureswithGECapital.Thelargestfinancialintermediaryinthecountrywillsignthejoint
ventureagreementwithGECapsinthelastweekofJanuary.
TheStateBankofIndiaonJan27kickedoffitsforayintothepaymentcardsbusinesswitha
jointventureagreementwithUSbasedfinancialservicesgiant,GeneralElectricCapital
Corporation(GECapital).
StateBankofIndia(SBI)onJune24signedanexclusiveagreementwiththeworld'slargest
paymentsystemVisaInternationalforpaymentcardsinIndia.Theagreementwassigned
inMumbaibetweentheSBImanagingdirector,MrOPSethia,andthegeneralmanagerand
executivevicepresident(SouthEastAsia)ofVisa,MrJamesGMurray.
1999
StateBankofIndia(SBI)hasbaggedthemandatetosyndicatethe$120millionloanforthe
NationalThermalPowerCorporation(NTPC).
TheStateBankofIndia(SBI)proposestotakeupthelifeinsuranceandgeneralinsurance
businessoncethesectorisopenedup.
StateBankofIndiahastiedupwithitsassociatebankstomarkettheSBICard.TheSBIhas
tiedupwithStateBankofPatialainChandigarhandStateBankofMysoreinBangaloreto
helpmarketitscreditcard.
SBIproposestointroduceavalueaddedserviceforcardholderswherebythecreditcardcan
alsobeusedasanATMcard.
TheStateBankofIndiawilltieupwithinternationalinvestmentbankerCreditSuisseFirst
Bostonandthreedomesticpublicsectorbankstoformagoldassayingventure.
TheStateBankofIndia(SBI)hasdecidedtotakeoverSBIHomeFinance(SBIHF),withits
assetsandliabilities.Havingthelargeststake,SBIhasbeenweighingvariousoptionsfor
bailingoutthejointventurecompanywhichhasslippedintohugelosses.
2000
TheBankhasembarkedupontheexpansionofitsATMnetworkinthetwincitiesof
HyderabadandSecunderfabad.
TheBankhasbecomethefirstgovernmentownedfinancialinstitutiontojointherankof
companiesdeclaringinterimdividend.
TheBankhasproposedtocomeoutwithanissueunderprivateplacementofunsecured,non

20. 20
convertible,subordinatedbondsinthenatureofpromissorynotesofRs1lakheach
aggregatingRs600croreswithanoptiontoretainoversubscriptionofuptoRs40crores.
TheBanklaunchedthe"Metal(Gold)LoanScheme"inCoimbatore.Thisisthethirdscheme
tobeintroducedbySBI.
TheBankhasbecomethefirstpublicsectorbanktoofferfixedratehomeloans.
2001
TheBankhassignedanMoUwithCardifS.A.forthebank'slifeinsurancebusiness.The
BankhasintroducedVoluntaryRetirementSchemeforeligibleemployees,openfromthe
15thJanuary2001tothe31stJanuary2001.TheBankhasincorporatedasubsidiary`SBILife
InsuranceCompanyLtd.,'fordoinglifeinsurancebusiness.TheBankwillinstall10more
AutomatedTellerMachinesinthenortheasternregioninadditiontotheonealready
commissionedatGuwahati.StateBankofIndialaunchedthreemoreATMsinBangalore.Mr
YRadhakrishnanhasbeenpromotedtothepostofmanagingdirectorofStateBankofIndia
SBICardshassetupaspecialinsurancecellinAhmedabadforfacilitatingtheclaimsofSBI
cardholdersaffectedbythetragicearthquakeinGujarat.SBIhasassignedtheDelhibased
HCLComNettoprovideitATMtellerinterconnectivitywhichcouldinvolveinvestments
runningintoseveralhundredcrores.SBIchiefgeneralmanagerMadhavMMehta,whois
currentlytheoperationalheadinGujarat,hasbeentransferredtoitscorporateofficein
Mumbaiaschiefgeneralmanager(CGM).
July3AnnouncesthelaunchoftheSBIInternationalcardandtheSBIGlobalCardfor
globaltravelersinIndia.SBIInternationalcardsandSBIGoldCardswouldbeacceptedat
over20millionVisaoutletsworldwideandonelakhoutletsinIndia.
StateBankofIndiahasembarkeduponanambitiousRs800croretechnologyupgradation
programme.ThebankhasappointedKPMG,aconsultantincomputertechnology,toprovide
interconnectivitynetworkingtothecomputerisedbranchesandalsototheATMsacrossthe
countryenablingitscustomerstotransactanykindofbusinessfromanywhere.
2002
Inordertoreduceriskanddevelopatransparentandactivedebtmarketingeneraland
governmentsecuritiesmarketinparticular,theClearingCorporationofIndiaLtd.hasbeen
setupinMumbaiwiththeBankasthechiefpromoter.SBIhasinformedthatthefollowing
changeinDirectors.1.ShriACKalita,DirectorontheBank'sCentralBoardceasedtobea
DirectorontheBoardwefMay13,2002onexpiryofhistermonMay12,2002.2.ShriY

21. 21
RadhakrishnanManagingDirector&GE(CB)hasrelinquishedofficeoftheManaging
DirectorasonJune30,2002andceasedtobeDirectorontheBoardwefJuly01,2002.
StateBankofIndiahasinformedBSEthatMrDCGuptaIASSecretary(FinancialSector),
MinistryofFinance,DepartmentofEconomicAffairs,NewDelhihasbeennominatedas
DirectorontheBoardofStateBankofIndiawitheffectfromJuly17,2002viceMrSK
Purkayastha.
2003
SBIappointsMr.SKBhattacharyaasthenewChiefGeneralManagerforHyderabadcircle
IncreasesitsequitystakeinDiscountandFinanceHouseofIndiaLtd(DFHIL)to51%.
TiesupwithMarutiUdyogLtd.(MUL)forcarfinance.
ReceivespermissionfromInsuranceRegulatoryandDevelopmentAuthority(IRDA)tosell
healthcareproductstoindividuals.
IncreasesitsEquityStakeinDFHILto55.30%
Startsnew'Plusschemes'loanssuchasJusticePlusintendedforthejudgesandcourt
employees,PolicePlusforthepolicepersonnel,TeacherPlusfortheteachingcommunity
andDoctorPlusforthemedicalpractitioners
ReceivesRBIlicencetosetupoffshorebankingunits(OBUs)inspecialeconomiczones
(SEZs)
TheCentralGovernmentafterconsultationwiththeReserveBankofIndia,appointedShri
ChandanBhattacharya,DeputyManagingDirectorStateBankOfIndiaasManagingDirector
StateBankOfIndiafortheperiodfromDecember17,2003toJanuary31,2005.
2004
FormerKCCIPresidentnominatedtoSBIBangaloreLocalBoard.
StateBankOfIndiahasinformedthatReserveBankofIndiahasnominatedShriAV
Sardesai,ExecutiveDirector,ReserveBankofIndiaontheCentralBoardofStateBankof
IndiaviceDr.RakeshMohan.
SBIsetsupATMcounterinErnakulam
BahrainMonetaryAgency(BMA)grantsinprinciplelicencetoStatteBankofIndia(SBI)
SBIsetsupIndia'sfirstdriveinATMinHyderabad

22. 22
StateBankofIndiahasenteredintoanalliancewithHDFCBankforsharingATMnetworks
tobeoperationalisedfromFebruary3,thisyear.
2005
RajTravelsjoinshandswithSBIfortravelloans
SBIopensbranchatVadakara
SBIjoinhandswithApolloHealthtoofferloans
SBIrollsoutnewloanscheme
SBIopensfirstbranchinLakshadweepislandofKavaratti
SBIentersintoagreementforbilateralsharingofATMswithPNBonMay10,2005
SBIsignsMOUwithCorporationBankforATMsharing
StateBankofIndiaand8associatebankshaveenteredintoanagreementwithBharat
PetroleumCorporationLtd(BPCL)forenhancingcardusageatfuelstations
SBIlaunchesnewmortgageloanschemefortraders
SBIlaunchesSBIcardinMadurai
SBIinauguratesRBOinThrissur
SBIsignedamemorandumofunderstandingwithSmallIndustriesDevelopmentBankof
IndiaforcofinancingsmallandmediumenterprisesinAndhraPradesh,TamilNadu,Uttar
Pradesh,Jammu&Kashmir,Jharkhand,DelhiandBihar
StateBankofIndiaandCrisilhavesignedamemorandumofunderstandingunderwhich
latterwillassignratingstosmallscaleindustriesthatareborrowersofSBI
NSICjoinhandswithSBItooffercredittoSSI
2006
SBIteamsupwithNihilenttounveilfeedbacksystem
BhatttobecomeSBI'snewMD
StateBankofIndia(SBI)hasinformedthatShri.YogeshAgarwalhasbeenappointedas
ManagingDirectorontheBoardoftheBankwitheffectfromOctober10,2006totheJune
30,2010
2007
StateBankofIndia(SBI)hasappointedShri.SKBhattacharyaasManagingDirectoronthe
BoardoftheBankwitheffectfromOctober08,2007totheOctober31,2010,asperthe
NotificationdatedOctober08,2007,bytheGovernmentofIndia.
TheStateBankofIndia(SBI)hasbecomethefirstforeignbanktosetupabranchinthe
Israel'sdiamondexchange.Besidesdiamonds,theyalsoseehugepotentialin

23. 23
telecommunications,hitech,chemicals,textiles,agricultureandwatermanagement,food
processing,pharmaandhealthcare.
2008
StateBankofIndia(SBI)hasinformedthattheGovernmentofIndiainpursuanceofclause
(e)ofSection19oftheStateBankofIndiaAct,1955(23of1955)hasnominatedShri.Arun
Ramanathan,Secretary,MinistryofFinance,DepartmentofFinancialServices,NewDelhias
aDirectorontheCentralBoardofStateBankofIndiawitheffectfromJanuary18,2008,
viceShri.VinodRai.StateBankofIndia(SBI)hasinformedthattheCentralGovernment,in
consultationwiththeReserveBankofIndiaandinpursuanceofclause(d)ofSection19of
theStateBankofIndiaAct,1955(23of1955),hasnominatedDr.(Mrs.)VasanthaBharucha
asaparttimenonofficialDirectorontheCentralBoardofStateBankofIndiaforaperiod
ofthreeyearswitheffectfromFebruary25,2008,viceShriPiyushGoel.
StateBankofIndia(SBI)hasinformedthattheCentralGovernment,inconsultationwiththe
ReserveBankofIndiaandinpursuanceofclause(d)ofSection19oftheStateBankofIndia
Act,1955(23of1955),hasnominatedDr.RajivKumarasparttimenonofficialdirectoron
theCentralBoardofDirectorsofStateBankofIndiaforaperiodofthreeyearswitheffect
fromSeptember08,2008oruntilfurtherorders,whicheverisearlier.
2009
StateBankofIndiayesterdayslasheditsbenchmarklendingratebyhalfapercentagepointto
11.75percent.TheBenchmarkPrimeLendingRate(BPLR)wasreviseddownby50basis
pointswitheffectfromJune29,SBIinformedtheBombayStockExchange.Thismove
wouldbenefithome,carandcorporateloancustomers
StateBankofIndiaonJune30launchedtwonewhomeloanproductscalledasSBIEasy
HomeLoanandSBIAdvantageHomeLoan,withzeroprocessingfeesforbothwaivedoff
tillSeptember30.WhileSBIEasyHomeisforloansamountuptoRs30lakhwhiletheSBI
AdvantageHomeisforloansaboveRs30lakh,apressreleaseissuedheresaid.
StateBankofIndia,enteredintoanagreementwiththegovernmentofGujarattocreatea
fundofRs5,000croreforinvestinginequityofinfrastructureprojects.
2010

24. 24
StateBankofIndia,withadebitcardbaseofover70million,comprisingSBICashPlus,
SBIGoldDebitCardandSBIYuvaCard,hasaddedchipandPINbasedPlatinumDebit
CardtoitsbouquetonMarch26.
MrAgarwalisCertifiedAssociateofIndianInstituteofBankersandjoinedStateBankof
IndiaasaProbationaryOfficerin1977.Anexpertincreditandforeignexchange,hehasheld
severalassignmentsrangingfromBranchManagertoRegionalManagerinthePatnaand
Delhicircles.
Healsoservedinthebank'sforeigndepartmentatKolkatahandlinginvestmentoftheFCNB
portfolio,derivativesandcorrespondentrelations.HehasheadedthePuneModuleofthe
bankandhasalsoservedastheDeputyGeneralManagerandBusinessHeadforNetwork1
oftheMumbaiCircle.
StateBankofIndia(SBI)hassignedapactwithUniqueIdentificationAuthorityofIndia
(UIDAI)toworkasaregistrarfortheUIDregistrationofresidents.Ithasbecomethefirst
banktotakeupregistrationworkfortheUIDAIproject.Asaregistrar,SBIwillcapture
throughempanelledenrolmentagencies,thebiometriccharacterssuchasfingerprints,iris
andsoonandsendtheinformationtoUIDAI.
2011
StateBankofIndia,withadebitcardbaseofover70million,comprisingSBICashPlus,
SBIGoldDebitCardandSBIYuvaCard,hasaddedchipandPINbasedPlatinumDebit
CardtoitsbouquetonMarch26.
Witnessedajointventurebetweenthenation'slargestlender,StateBankofIndiaandthe
telecomlead,BhartiAirtelwithanaimtoprovidethebankingservicesamongstthe
unbankedpopulationofthecountry.
SBIAcquisitionofSBICIBank
PChoudharyhasbeenappointedasthenewchairmanofStateBankofIndiaaftergetting
clearancefromthegovernment.
ExperianCreditInformationCompanyofIndiaPrivateLimited,thefirstCICRAlicensed
creditbureauinIndiaonSeptember23,2011saidithassignedamembershipagreementwith
StateBankofIndia(SBI),thelargestconsumerlenderinIndiatocontributedatato
Experian’screditbureauandenhancetheeffectivenessofcompany'srangeofproductsand
services.
2012

25. 25
StateBankofIndiasignedaPreliminaryNonBindingMemorandumofUnderstandingwith
RussianDirectInvestmentFund(RDIF),tofacilitateadvancingbilateraleconomic
cooperationandtradebetweenRussiaandIndiaaimedatexploringinvestmentopportunities
inboththecountries.
India'slargestpublicsectorlender,StateBankofIndia(SBI)hasenteredintoanagreement
withStarAgriWarehousingLtd(StarAgri),India'sleadingagriservices&solutionsprovider,
forWarehousingReceiptFinancingandCollateralManagementServices.
SBI,ICICIBankleadingmbankingrevolutioninIndia.Withtheadventofsmartphonesand
3Gservices,theMobileBanking(mBanking)serviceshavebeenfastcatchingupwith
Indiancustomersforconductingbalanceinquiries,accounttransactions,utilitypayments,and
otherbankingactivitiesusingamobilehandset
India'slargestlenderStateBankofIndia(SBI)hasbeenplanningtocuttheprocessingand
conversionfeeforhomeloanstoleveragetheapproachingfestivalseasonwhenIndians
usuallyspurbuyingasbusinessesofferhealthydiscounts.
2013
India'sleadingPublicSectorlendertheStateBankofIndia(SBI)issteppingupeffortsto
expanditspresenceintheworld'ssecondbiggesteconomywiththelendersettolaunchits
secondbranchinChina.
3.2STRUCTUREOFTHESBI

26. 26
StateBankofIndiaisoneofthemostpopularandreputedbankintheworld.Inthe
bank there were two manager from  them one was the  Branch Manager and other was
AssistantManager,twocashierwhoweredoingtheirworkverynicely,CashOfficerwho
waskeepingrecordofthecashthathowmanycashwasusedandhowmuchwasremainall
cashinformationkeepingbyhimandalsothereweretwohelperswhoweredoinghelpto
managerwhatevermanagerwantedandalsodidotherwork.Whenbankwasopenedbranch
managerandcashofficerweregoneintoStrongRoomandtookcashfromitwhateverneeds
ofthedaydependeduponthedemandofthecustomers.Andalsotheyweredoingentryinto
cashregisterwhichtookcash.Inthebankpremisethereweremanyimportantnoticeboard
andwarningboardonthewallwhichwereindicatedtothecustomersthathowtobehavein
thebankpremiseandhowtofollowbank’srulesandregulation.TherewerealsoCCT.V
Camerawhichwerehelpedtothebankfromthestealofthemoney.
There were many notice boards on the wall which are following:
Cheque Validity:
AllcustomersarerequestedtoNote:
TheReserveBankofIndiahasdecidedtoreducethevalidityofchequesfromthepresentsix
monthstothreemonthsfromApril1st
,2012.Thisvalidityisapplicableforalltypeofbanks
andallinstrumentslikeCheque,Payorder,DemandDraft,BankersChequesetc.
Supreme Court Declaration (Loan Pay By Guaranteer)
Ifyouaregivinganyguaranteeforaloanpleasethinkonceagainbeforeyouproceedbecause
incaseloanborrowerunabletorepaythebankloanthenguaranteerwillberesponsibleto
paytheoutstandingamount.
Note: Branch advice in this case according to contract act 130 there is no relief for
guaranteer.
Required Information about Opening of Account
TwoPassportsizePhotos

27. 27
PANCard
License
Passport
Government/ProtectionIdentityCard
LightBill
TelephoneBill
CreditCard
RationCard
Mutilated Notes are accepted and Exchange
MutilatedNotesareacceptedinthebankforexchangeunderReserveBankofIndia
(NoteRefund)Rules.
Exchangevalue,ifanymustbecollectedonthesameday.
Notesonwhichexchangevalueisnotpayablewillberetainedbybank.
IncaseofanydifficultypleasecontacttothebranchManager.
APPEALTOCUSTOMER
We solicit yoyr cooperation for compliance of Clean Note Policy. Do not staple/ stitch
currency notes. Do not write on currency notes. As we are committed to provide to all
customersClean,Unstaplednotes.
WARNING
BewareofPickPockets.Donotallowyourattentiontobedivertedfromthebusinessyouare
transactingatthecounter.
NOTICE
Public are requested in their own interest as well as bank’s interest to satisfy themselves
beforeleavingthecashcounterthatcashreceivedbythemisinorderineveryrespectno
claimwillbeentertainedunderanycircumstancesafterleavingthecashcounter.
Allthebank’stransactionsarecomputerizedandmanualpassbookentriesarenotinvogue
anymore.AnydiscrepancyinthepassbooksshouldbebroughttothenoticeoftheBranch
Manager.
NOTICEFORLOANCUSTOMER

28. 28
Allcustomershavetoinformationthatiftheyarenotpaydepositinstallmentunderthree
months their loan account will be NPA and also will give themlegalnoticeandafterall
sendingtheseallnoticetheynotpayinstallmentbankwillbeseizertheirproperty.So,please
payinstallmentontimeasperbank’srulesandregulation.
TIMINGSFORBANKING
TRANSACTIONSUNDER
NORMALCONDITION
No. NameofActivity Normaltimeforcompletion
1 Recieptofcash 5minute
2 Paymentofcheques 510minutesdependingonamount
3 OeningSB/CD/RDaccount 20minutes
4 Issueofchequebook 10minutes
5 IssueofDD 315dependingoncashteller
6 PaymentofDD 10minute
CurrentBoardofDirectors
Ason14January2013,therearefifteenmembersintheSBIboardofdirectors:[6]
PratipChaudhuri(Chairman)
HemantG.Contractor(ManagingDirector)
DiwakarGupta(ManagingDirector)
A.KrishnaKumar(ManagingDirector)
S.Visvanathan(ManagingDirector)
S.Venkatachalam(Director)
D.Sundaram(Director)
ParthasarathyIyengar(Director)
ThomasMathew(Director)
S.K.Mukherjee(OfficerEmployeeDirector)
RajivKumar(Director)
JyotiBhushanMohapatra(WorkmenEmployeeDirector)
DeepakAmin(Director)
HarichandraBahadurSingh(Director)
D.K.Mittal(Director)
3.3INTERNATIONALPRESENCE

29. 29
As of  31st
 December 2009, the bank had 151 overseas offices spread over 32
countries.IthasbranchesoftheparentinColombo,Dhaka,Frankfurt,HongKong,Tehran,
Johannesburg, London, Los Angeles, Male in the Maldives, Muscat, New York, Osaka,
SydneyandTokyo.IthasoffshorebankingunitsintheBahamas,Bahrain,andSingapore,
andrepresentativeofficesinBhutanandCapeTown.ItalsohasanADBinBoston,USA.
SBI operates several foreign subsidiaries or affiliates. In 1990, it established an
offshorebank:StateBankofIndia(Mauritius).
In1982,thebankestablishedasubsidiary,StateBankofIndia(California),which
nowhasninebrancheseightbranchesintheStateofCaliforniaandoneinWashington,D.C.
The9th
branchwasopenedinTustin,Californiaon7th
March,2011.Theothersevenbranches
inCaliforniaarelocatedinLosAngeles,Artesia,SanJose,CanogaPark,Fresno,SanDiego
andBakersfield.
The Canadian subsidiary, State Bank of India (Canada) also dates to 1982. It has
sevenbranches,fourintheTorontoareaandthreeinBritishColumbia.
In Nigeria, SBI operates as INMB Bank. This bank began in 1981 as the Indo
Nigerian Merchant Bank and received permission in 2002 to commence retail banking. It
nowhasfivebranchesinNigeria.
In Nepal, SBI owns 50% of Nepal SBI Bank, which has branches throughout the
country.InMoscow,SBIowns60%ofCommercialBankofIndia,withCanarabankowning
oftherest.InIndonesia,itowns76%ofPTBankIndoMonex.
The State Bank of India already has a branch in Shanghai and plans to open in
Tianjin.
InKenya,StateBankofIndiaowns76%ofGiroCommercialBank,whichitacquired
forUS$8millioninOctober2005.
Nonbankingsubsidiaries
Apartfromitsfiveassociatebanks,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)

30. 30
SBIDFHILtd
SBILifeInsuranceCompanyLimited
SBIGeneralInsurance
InMarch2001,SBI(with74%ofthetotalcapital),joinedwithBNPParibas(with
26%oftheremainingcapital),toformajointventurelifeinsurancecompanynamedSBI
LifeInsurancecompanyLtd.In2004,SBIDFHI(DiscountandFinanceHouseofIndia)was
foundedwithitsheadquartersinMumbai.
3.4SYMBOLANDSLOGAN


31. 31
ThesymbolofStateBankofIndiaisacircleandnotkeyholeandasmallman
atthecentreofthecircle.Acircledepictsperfectionandcommonmanbeing
thecenterofthebank’sbusiness.
Slogans
o Withyoualltheway
o Purebankingnothingelse
o TheBankertoeveryIndian
o TheNationBankonus
AssociateBanks
StateBankofBikaner&Jaipur
StateBankofHyderabad
StateBankofMysore
StateBankofPatiala
StateBankofTravancore
StateBankofSaurashtramergedwithSBIin200fv8.
StateBankofIndoremergedwithSBIin2010.
Recentawardsandrecognitions
BestOnlineBankingAward,BestCustomerInitiativeAward&BestRisk
ManagementAward(RunnerUp)byIBABankingTechnologyAwards2010
TheBankoftheyear2009,India(wonthesecondyearinarow)byTheBanker
Magazine
BestBank–LargeandMostSociallyResponsibleBankbytheBusinessBank
Awards2009
BestBank2009byBusinessIndia
TheMostTrustedBrand2009byTheEconomicTimes
MostPreferredBank&MostpreferredHomeloanproviderbyCNBC
VisionariesofFinancialInclusionByFINO

32. 32
TechnologyBankoftheYearbyIBABankingTechnologyAwards
SKOCHAward2010forVirtualcorporationCategoryforitsepaymentsolution
TheBrandTrustReport:[12]
11thmosttrustedbrandinHindustan.
Majorcompetitor
SomeofthemajorcompetitorsforSBIinthebankingsectorareICICIBank,HDFCBank,
AxisBank,PunjabNationalBankandBankofBaroda.Howeverintermsofaveragemarket
share,SBIisbyfarthelargestplayerinthemarket.
3.5SBIACCOUNT
TheSBIhasintroducedvarietiesofbankaccountstowardscustomers.Thestatebankhas
three  major types of account like Saving Account, Current Account, Recurring Account.  
SavingsBankAccountforthebenefitsofthecommonmantosavemoneywithSBIandthey
canalsodomoneyfortheirfutureplan.Acommonmanwhohavenomoresalarysohe
couldnotsavemoremoneybutfortheirbetterfuturetheysaveaveryfewmoneyintosaving
account.SBIBankaccount, CurrentAccountforbusinesspeoplebecausebusinesspeople
can earned more money and they can save more money. Because in the current account

33. 33
customers have to deposit money in a certain period. Salary accounts for the various
government employees and also to help the private employees. When employee’s salary
comeittransfertotheirbankaccount.TheSBIhasmovedinintroducingPPFaccounts.The
SBI has also launched other products like government accounts, which can serve for the
governmentdepartmentstomaintainaccountswithSBI.TheDemataccount,corporategroup
accountwhichseeksadvantagesforthecorporatepeople,onlinebankingaccounttooperate
withthehelpofInternet,onlinetradingaccounts,whichhelpsthetradingpeople,Nostroand
Forex trading accounts for international banking purposes. The SBI further added special
products for NRIs staying in India like NRE, NRO. The other type of account by name
ResidentForeignCurrency(RFC)istheotherproductthathasbeenintroducedbytheSBI.

KYC(KnowYourCustomer)
KYC is an acronym for “Know Your Customer”, a term commonly used for Client
IdentificationProcess.SEBIhasprescribedcertainrequirementsrelatingtoKYCnormsfor
FinancialInstitutionsandFinancialIntermediariesincludingMutualFundsto‘Know’their
clients. This would be in the form of verification of identify and address, providing
information of financial status, occupation and such other demographic information.
ApplicantmustbeKYCcomplaintwhileinvestingwithanySEBIregisteredMutualFund.
To whom is a KYC applicable?
Currently,allinvestors(IndividualorNonIndividual)whowishtomakeaninvestmentof
Rs.50,000orabovewillberequiretobeKYCcomplaint.Thiswouldalsoapplytoknow
SystematicInvestmentPlan(SIP)transactionsonafter1February2008,ifeachinstallment
ofvaluegreaterthanorequaltoRs.50,000.
Joint Holders: JointHolders (includingfirst,secondandthirdif any,arerequired)tobe
individuallyKYCcomplaintbeforetheycaninvestwithanyMutualFund.E.g.incaseof
threejointholders,allholdersneedstobeKYCcomplaintandcopiesofeachholder’sKYC
Acknowledgement must be attached to be investment application from with any Mutual
Fund.
Minors: IncaseofinvestmentsinrespectofaMinor,theguardianshouldbeKYCcomplaint
andattachtheirKYCAcknowledgementwhileinvestingthenameoftheminor.Theminor,
uponattainingmajority,shouldimmediatelyapplyforKYCcomplianceinhisorherown
capacity.
SBISavingsAccount
InsavingsBankaccount,customerscanmadedeposits,whichareliquefied,safeandgets
rateofinterestasperbank’srules.SavingAccountopenforthecommonman.Thisisto

34. 34
facilitatethecustomerstosavemoney,whichcanbeutilizedatlatertime,whenthemoneyis
needed very badly. When customer needs money very urgently they can withdraw their
moneyfromthebankaccountveryeasily.That’swhycustomershouldhavetosavetheir
moneybecauseitisusedtothemwhentheyhavenoothersourcesandnocashinhand.And
alsostudentscouldopentheiraccountinthebankfortheirscholarshippurpose.
SBICurrentAccount
This account is to help the customers to have both ATM and Debit Card facility. The
customerswillbeprovidedwithachequebookcontainingaminimumof25leavestodraw
money,whenrequired.Nochargesareapplicable.Currentaccountismostbenefitedfora
business man because business man could more money from their business. So for them
currentaccountisthebestoptiontosavemoney.
SBINoFrillsAccount
ThecustomerswhoarenotabletoprovideminimumrequirementofSBItheconvenience
providedforthemistomaintainaminimumbalanceintheiraccountandnoservicecharges
areapplicable.
SBISalaryAccount
The SBI has made ease for the employees to draw the salary amount through the SBI
Account, where the salary amounts will be transferred from the employees accounts. The
facilityreducedtheburdenofdisbursementattheemployer’splace.
SBINRIAccounts
ThistypeofaccountisintentionallylaunchedforthesakeofNRIs.Underthisaccounting
type,NRErupeeaccounts,NROaccounts,FCNR,savingsbankandcurrentaccountscanbe
opened from NRIs to make money transactions whenever needed by them. Fixed deposit
accountsarealsoprovidedforNRIs.
InternationalBankingAccounts
The SBI has launched a few accounts type to provide solutions for international banking
services,whichincludeNostroandForextradingaccountsandotherlatestproducts.
CorporateAccountsGroup

35. 35
The‘CorporateAccountsGroup’hasbeenintroducedbySBItomakeconvenienceforthe
corporatepeopletooperateaccountswithSBIbranches.
OnlineTradingAccounts
ThisproductistocooperatewiththecustomerswhohavebeenregisteredfromtheSBIand
aftergettingtheregistrationbySBI,thepersonwillgetonlinetradingaccounts.
SBIInternetBankingAccount
ThisnetbankingfacilityhasbeengeneratedbySBItohandleallSBIaccountsthroughonline
byusingInternetServices.Thiswillcertainlyreducesthecustomer’sprecioustime.
SBIPPFAccount
ThePPFisascheme,whichwaslaunchedbythecentralgovernmenttoinvestunderthis
schemeincentralgovernment’sfundsaccountsandearnapplicablebenefitsatthetimeof
retirementorevenbeforebysurrenderingthePPFaccountbyaaccountholder.Underthis
theaccountholderwillgetincometaxrebate.
AccountBusinessCurrent
SBIprovidescurrentaccountfacilitycustomizedforbusinessmanwiththeconvenienceof
easyfundtransfer,clearingallbillsquicklyandquickcelebrateforoutstationCheque.
SBIAccountOpening
TherangeofproductsthathavebeenlaunchedDematAccount:
ThroughthistypeofDematAccountwhichhasbeenintroducedbySBI,toconvenience
forsharingtrading,investmentinmutualfundsandalsohelpsforotherequityanddebenture
derivativesandpresentation.
GovernmentAccounts:
AstheSBIisworkingundertheinstructionsoftheRBI,whichrepresentsthecentral
government and also working as a coagency for the transactions of internal branches of
centralgovernmentofIndia.Alltransactionsrelatedtogovernmententerprisearemaintained
separatelyundertheproceduralfunctionsofSBI.
BySBIhashelpeddifferentcustomerstotransactwellandexpandedthebasementofthe
SBIasoneofthebiggestbankinIndia.

36. 36
NominimumbalancerequiredforSBIsavingsaccounts
TheStateBankofIndiahasaskeditsbranchestoremovetheminimumbalancestipulation
andrefundchargesthatwerecollectedforfailuretomaintainthesame.
ThecircularissuedonApril25saidthebankhasdecidedtowaivetherequirementof
maintenanceofminimumbalanceforalltypesofsavingsbankaccountswithimmediate
effect.
Accordingly,nominimumbalancechargeswouldbeleviedeveryquarterhenceforth,the
circularaddressedtochiefgeneralmanagersofallSBIcirclessaid.
Brancheswereadvisedtouseapprovedpublicitymaterialtotheeffectandtohavethem
displayedprominentlyonbranchpremises.Inaprecedingcircularsentonlythedaybefore,
thebankorderedrefundofchargesfornonmaintenanceofminimumbalance‘ofpersonal
segment'customers.
Thiswasaimedatsettingrightanearlierorderthatsoughttoapplychargesfornon
maintenanceofminimumbalancesonalleligibleaccountsforthequarterendedMarch31
SBIMUTUALFUNDS
SBIMutualFundisIndia’slargestbanksponsoredmutualfundwithaninvestorbase
ofover3million.SBIMutualFundisajointventurebetweentheStateBankofIndia,India’s
largestbankingenterpriseandoftheworld’sleadingfundmanagementSocieteGeneralAsset
ManagementofFrance,onecompany.
SinceitsinceptionSBIMutualFundhaslaunchedthirtytwoschemesandsuccessfully
redeemed fifteen of them. SBI Mutual Fund schemes have consistently outperformed
benchmarkindices.SBIMutualisthefirstbanksponsoredfundtolaunchandoffshorefund
ResurgentIndiaOpportunitiesFund.
Presently,SBIMutualFundmanagesoverRs.17000croresofassets.Thefundhasa
networkof100collectionbranches,26investorservicecenters,28investorservicedesksand
40districtorganizers.

37. 37
CONVENIENCEBANKING
“QUICK, EASY AND ALWAYS AVAILABLE”
Intoday’sdayandagetimeismoney. Youworkhardandhaveabusy schedule.
Doingbankingshouldbeeasyandconvenientandnotaddtoworries.
StatebankofIndiarealizethisandhavespeciallytailoredawiderangeofvalueadded
productandservicestomakemoneyworkforyou.Thiscoupledwiththehigheststandardof
customercarewillmakelifesimpleandeasier.
MultipleBankingChannels:
Todaythetechnologydrivenbanksarefindingvariousmeanstoreducecostsandreachoutto
as many customers as possible spread over diverse area. This has led to using multiple
channelsofdeliveryoftheirproducts.
ATM(AutomaticTellerMachine)
TheATMserviceisavailableinthestatebankofindiawhichisveryimportant
forthemandtheircustomersbecauseATMsavetimeofthecustomersnadalsoofthecashier
ofthebank.Theycanbeuserofasavingaccount,acurrentaccount,pensionaccountand
NRIaccount.TheaccountholderwillgetanATMcardfromthebankalongwithotheritems
atthetimeofaccountopening.Thereis4digitpinnumber(PersonalIdentificationNumber)
thatwillalsobemailedtocustomerfromthebank.Thisisahighlyclassifiedinformationthat

38. 38
youwillmaintainsecretlyandnotallowotherstoknow.Forsecurityreasonyoucanalso
changeyourpinperiodically.EverytimeyouaccessyouraccountwiththeATMcardthisis
thenumberthatwillworklikeyourpassword.Thusitssecurityismostimportant.Customer
willbemailedthisnumberseparatelyinasecuredmannerfromthebankforthefirsttime
afteropeningtheiraccount.Incaseofthelossofthesamecustomermustinformtothebank
immediately so that customers are allotted and alternative number from the bank at the
earliest.Thereareseveralmodernsinnovationsofbankingthathavecateredtoallaspectsof
transactions and urgent need for money. This is an age when technology and innovations
havebroughtabouteasyaccessofcustomer’sowncashwheneverandwherevertheyneedit.
Oneofthemostinnovativefeaturesofmodernbankingistheavailabilityofanytimeand
anywhere money that you need. There are various emergency situations when urgent
monetary requirements are common. This has now become easier with modern banks
establishingtheir ATM orAnyTimeMoney machinesalmostin everyneighborhoodand
region.
ThepopularityofallthepresentsbanksinIndiaisduetopresenceoftheirATMmachine
availability.AndamongthemtheStateBankofIndiaisafrontrunner.SBIhasoneofthe
largestnetworksofATMmachinesthatarelocatednotonlyineveryneighborhoodofcities
andtownsinthecountry.Therearealsofoundevenintheremoteandinteriorvillagesofthe
country.Ithasusheredtheconceptsofmodernbankingamongallsegmentsofthepopulation
even to those who are usuallyinhabited far away from cities. It has played a key roleto
introducingmoderntechnologytothepeopleofthecountryandmadelifeeasierforthem.In
theATMserviceacustomercandrawtheirmoneyfromotherbank’sATMonlyfivetimes
afterthatbanktakechargesfromthecustomerRs.20andthischargecutfromtheiraccount.
AndalsoobservedaboutATMthatineveryATMmachinehasdifferentcapacityofkeeping
cashbecauseofitscontainersize.WhenIdidtrainingtherewasalsooneATMmachineand
inthatmachinecustomercandrawamountuptoRs.40,000perdayitwasthelimitofthe
amountwithdraw.ATMmachineisaveryspeedytechnologywhichissavecustomer’stime
aswellastimeofthecashierofthebank.AndIalsolearnedthatwhenATMmachinewas
notworkingthebranchmanagercalledATMengineersandtheyrepairedATMmachineand
alsotheyhavetodidentryintoATMregister.Thus,ATMmachineisaveryuniquemachine
whichhelpstocustomertodrawtheirmoneyfromtheirbankaccountveryeasily.
 NETBANKING
NetbankingmeanscarryingoutbankingtransactionviatheInternet.Thustheneed
for a bank is most required. Also this helps in serving the customer better and tailoring
product better suited for the customer. The branch manager also explained me about net
bankingthatthisbankinghelpustodotransactionsviainternet.Whenmanagerhavetodid
transactionswithotherbanktheyusedinternetbankingfortheirpurpose.

39. 39
A customer can view his account details, transactions history, order drafts,
electronicallymakepayments,transferfunds,checkhisaccountpositionandelectronically
communicatewiththebankthroughtheinternetforwhichhemayhavewantedtovisitthe
bankbranch.Netbankingisaverygoodservicebecausewhencustomershavetoknowabout
theiraccountinformationtheyhavetonogointobankforchecktheinformationaboutthe
theiraccountbuttheycaneasilydochecktheiraccountbalancewiththehelpofnetbanking.
Alsotheycansavetheirtimebecauseofnetbankingservice.Transactioncostwouldalso
reducejustbecauseofnetbanking.Sothestatebankofindiaprovidegoodservicestotheir
customersanddohelpwhenevertheyrequired.Netbankingisveryusefulforbothbankas
wellascustomers.
Netbankinghelpsabankspreaditsreachtotheentireworldandspreaditsreputation
intheworld.
MOBILEBANKING
MobileBanking(alsoknownasMBanking,mBanking,SMSBanking)isatermed
usedforperformingbalanceschecks,accounttransactions,payments,creditapplicationsand
otherbankingtransactionsthroughamobiledevicesuchasamobilephoneorPersonalDigit
Assistant(PDA).
MobileBankingreferstoprovisionofbankingandfinancialserviceswiththehelpof
mobiletelecommunicationdevices.Thescopeofofferedservicesmayincludefacilitiesto
conductbankandstockmarkettransactions,toadministeraccountsandtoaccesscustomized
information.
SMSBANKING
SMSBankingisaservicethatallowscustomerstoaccesstheiraccountinformationvia
mobilephone.SMSBankingservicesareoperatedusingbothpushandpullmessages.Push
messagesarethosethatthebankchoosetosendouttoacustomer’smobilephone,without
the customer initiating a request for the information. Push  messages  are those that are
initiatedbythecustomer,usingamobilephoneforobtaininginformationorperforminga
transactioninthebankaccount.SMSBankingisagoodservicewhichisprovidebythestate
bankifindiatotheircustomersfortheirsakeof.Whencustomeropenedtheirbankaccount
theyhavetogavetheirmobilenumberiscompulsorybecausewhenanyproblemoccursin

40. 40
thetransactiontheycouldmessagetothecustomersandtheycomeandsolvedtheirproblem
easily.SMSBankingisagoodservicetoinformtothecustomerwhichisverybenefitedfor
thecustomeraswellasbank.
3.6OTHERSERVICES
CREDITCARD
CreditCard(Visa)BillPayisaspecialservicethatallowscustomerstotransfermoney
onlinefromtheirSBIaccounttoanyVISADebitorCreditCardissuedinIndia.
CreditCard(Visa)BillPayissoquick,simpleandaconvenientalternativetoDemand
Drafts,Chequesorpayorders.
Inthebankmanycustomersweregottheircreditcardfromthebankandalsomembers
of the state bank of india were very cooperative to provide credit card service to their
customersandcustomerswerealsoveryhappytogotthisservicefromstatebankofindia.
Andwhencustomerspurchasedanyproductorthingfromshoppingcentre,getbooksonline
frominternet,bookingofairticket,etc.theyusedcreditcardfortheirpayment.IntheCredit
Cardservicecustomercanusedonlywhichmoneythatisintheirbankaccounttheycould
notusedmoremoneyiftheiraccountempty.CreditCardisaverygood,quick,simpleand
easiestservicebecausewhencustomerpurchasedanythingfromtheshoporanywherethey
couldpaytheirmoneywiththehelpofCreditCard.CreditCardisagoodforthecustomer
andalsoforthebankbecauseitissavetimeofthecustomerandbankandalsoreducethe
transactioncost.
LOCKERSERVICES
Lockerisaveryimportantpartofthebankbecauseinthelockerroomjewellery,
documentsofthepropertyandalsootherimportantthingswhichwereputbycustomersin
thelockerroomtosavefromstealbyanyone.Whencustomerkeeplockerfortheirsafety
gavethemlockernumberandlockerkey.Whencustomerswerecameinthebanktotake
theirjewelleryfromthebankorthedocumentstheyhavetodidentryintolockerregisterthat
whentheywerecamewhatwasthetime,whichwasthedateandtheirlockernumberbecause
oftheirsafetyandalsodidsignatureofthemtoconfirmthatapersonwhocametotook
documentsandotherthingsheorsherealpersonornotthatwhohadputtheirjewelleryand
documentsbecauseitisveryimportantforthecustomeraswellasbank.Storingtoomuch
Jewelleryandvaluablesinthehouseattimesbecomesasecurityissueandanobstacleincase

41. 41
ofnaturalcalamities. Incaseoflossofkeyofthelockers,aservicechargeofRs.500/hasto
berecoveredfromhireinadditiontotheactualexpenditureincurredforbreakingopenthe
lockerandchangingthelockbymanufacturersoflockers.
SBIoffers,asafe,trustworthyspacetostorevaluables,jewellery,documentsandother
things.
DEMANDDRAFT
SBIenablescustomerstoissuedemanddraftonline.Customerhastheoptiontocollect
thedraftfrombranchorgivehismandatetodispatchthedraftbycouriertothebeneficiary.
Thereisverygoodfacilitytoprovidedemanddrafttotheircustomersbecausecustomerscan
getdemanddraftthroughonlineaswellaspersonally.
LOANSERVICES:
InthestatebankofindiathereisaverygoodloanschemeofferedbytheStateBank
of India are extremely popular among the Indian citizens due to the higher facilities and
featuresassociatedwiththem.TheSBIisconsideredtobethemostlargestgovernmentbank
the country has. The bank has also a large number of customers who are from different
cornersofthecountry.Thereareseveralloanfacilitiesandschemesavailablefromthehouse
ofSBIwhicharepreparedkeepinginmindtheneedandrequirementsofdifferentcustomers
and peopleofthecountry.Statebankofindiaverycarryingabouttheircustomersbank’s
manageralwaysalertabouthisdutytoprovidemoreandmoreservicestotheircustomers.
Thereisamanyloanschemeprovidebythestatebankofindia.
HomeLoan
AgricultureGoldLoan
CarLoan
EducationLoan
ComputerLoan
SakhiMandalLoan
