SBI Bank Day 68

SBI FOUNDATION DAY

Today, the employees and pensioners of SBI celebrate the 68th foundation day of the Bank. I thought I will pen a few interesting facts about the largest commercial bank in India.

1. Origin:

Three Presidency Banks commenced  banking operations in the following order:

Bank of Calcutta : 1806 (Renamed Bank of Bengal in 1809)

Bank of Bombay : 1840

Bank of Madras: 1843*

2. Imperial Bank of India:

The above three banks were merged to form Imperial Bank of India (IBI) in Jan 1921. IBI also acted as the Central Bank for British India prior to formation of Reserve Bank of India in 1935.

3. State Bank of India (SBI):

By an act of Parliament, RBI acquired controlling interest in IBI. The bank was nationalised and renamed State Bank of India from 1st July 1955.

4. Banking Subsidiaries/ Associates

Eight Princely State Banks of different regions were nationalised in 1959 and were made the banking subsidiaries of SBI. They were known as associates, later on. The names were State Bank of Patiala, State Bank of Bikaner & Jaipur, State Bank of Saurashtra, State Bank of Indore,  State Bank of Hyderabad, Stare Bank of Travancore, and State Bank of Mysore.

5. Merger of Banking Associates:

i. State Bank of Saurashtra was merged with SBI in 2008 and State Bank of Indore got merged with SBI in 2010.

ii. The remaining five banking  associates viz. State Bank of Hyderabad, State Bank of Patiala, State Bank of Bikaner & Jaipur, State Bank of Travancore and State Bank of Mysore were merged with SBI with effect from 1st April 2017.

6. Business Highlights of SBI: (31st March 2023)

Total Business: Rs.77 lac cr.

Total deposits Rs.44 lac  cr. (Market share: 23%) 

Gross advances Rs.33 lsc cr. (Market share: 19.7%)

Net Profit 2022-23: Rs.50232 cr. (Highest in bank history)

No. of Branches: 22405

No. of ATMs: 65627 (Market share 30%)

No. of employees: 2.45 lacs 

No. of Customers: 48 cr.

Market capitalisation: Rs.5.22 trillion 

Thanks to the climb up of market value of share from Rs.450 levels a year ago to ranging around Rs.580 levels now, even on an improved net worth, the PB ratio is attractive at 1.59. 

7. Feathers:

The largest commercial bank in India is the 49th largest bank in the world in terms of assets, ranks 221 in the Fortune 500 Global Corporations of 2020 and is the 26th most valuable lender in the world.

Titbits

A.  Tracing its banking origin, SBI is 218 years old. (Bank of Calcutta formed in 1806). The date on which SBI came into existence (Date of nationalisation of IBI) is celebrated as its foundation day. Today marks the 68th foundation day.

B. Incidentally, the second largest bank in terms of business, HDFC Bank Ltd merged HDFC Ltd with itself effective from today. (Combined business Rs.41 lac cr.). So the competition gets tougher, as the number 1 and 2 are becoming bigger and bigger. Augurs well for Indian economy.

C.  About me: I joined as an employee of SBT in 1980 with SBI as SBT's parent. The status continued till 31st March 2017, the date on which I superannuated. However from April 2017, my pension is paid by SBI. A rare privilege of my entire salary having been paid by SBT and the pension from month one (April 2017) being paid by SBI!

Long Live SBI, the banker to every Indian Family

Regards

V. Viswanathan 

CGM Retd State Bank

1st July 2023

*Bank of Madras came into operation from 1st July 1843.

Comments

  1. AnonymousJuly 1, 2023 at 4:31 AM

    Very informative

    ReplyDelete
  2. AnonymousJuly 1, 2023 at 4:33 AM

    S.vemkatesan. Very informative

    ReplyDelete
  3. AmitJuly 2, 2023 at 8:42 AM

    CRISP article SIR. Always inspired by your acts.

    ReplyDelete

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