STATE BANK OF INDIA

State Bank Of
India is an Indian global public sector banking and financial services
company  headquartered in Mumbai

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The bank
goes down from the bank of Calcutta founded in 1806 via The Imperial Bank Of
India .  The bank of madras merged with bank
of Calcutta and the bank of Bombay to form the Imperial Bank of India which in
turn became the State Bank Of India

SBI provides
a range of banking services throughout india and overseas to its customers

 11300 camps held by the bank  in Aug 2014 and 3 million accounts by
September were introduced  including 2.1
million accounts in rural and 1.57 million in urban areas. As per FY 2014-15 the
bank had 191 foreign branches in over 36 countries showing  the largest presence of indian banks in
foreign markets.

 SBI International Ltd. In Mauritius in 1989  established by sbi  amalgamated with The Indian Ocean International
Bank in Mauritius  forming  SBI Mauritius Ltd.

Today SBI
Mauritius Ltd. has branches all over Mauritius. Apart from ATM and Branch
Banking  vigorous internet banking helps customers
to operate  from their homes and offices

 SBI operates as INMB Bank in Nigeria . The
bank began in 1981 as an  Indo-Nigerian
Merchant Bank and commenced retail banking in 2002 .  Having  a branch in Shanghai SBI  plans to open one branch  in Tianjin. In Jan 2016 SBI opened its first
branch in Seoul Soth Korea because of  the continuous and significant increase in
trade due to a business  Agreement signed
between New Delhi and Seoul in 2009.

SBI acquired
the control of seven associate banks in 1960. These seven banks were State Bank
Of Bikaner And Jaipur(SBBJ) ,State Bank Of Hyderabad (SBH) ,State Bank Of
Mysore (SBM) ,State Bank Of Patiala (SBP), State Bank Of Travancore (SBT),
State Bank Of Saurashtra (SBS), State Bank Of Indore.

The idea  for making it  a mega banking player in the banking industry by
merging associate banks started way back in  2008 and in September the same year SBS merged
with SBI. The very next year State Bank Of Indore also merged with SBI and
Bharitiya Mahila Bank was also formed in the subsequent year

Shareholding
Pattern :-

 

Promoters: Govt. Of India

61.23%

FIIs/GDRs/OCBs/NRIs

11.17%

Banks and Insurance Co.

10.00%

Mutual Funds and UTI

8.29%

Others

9.31%

Total

100.0%

 

 

 

The  shares of SBI are listed on the Bombay Stock
Exchange and National Stock Exchange and GDRs in LSE

It  is one of the largest employers in the country
with 209567 as on 31 March 2017 out of which there were 23% female employees
and 3179 employees with disabilities. On the same date SBI had 37875 Scheduled
Castes 17069 Scheduled Tribes and 39079 other backward classes employees. The
percentage of associates , sub-staffs 
and officers 44.3%,16.9%,38.6% respectively on the same date. Around
13000 employees have joined the bank in FY 2016-17

     Vision:-

·        
My
people  first

      Mission:-

·        
Prompt
, polite and proactive with customers

·        
Create
product and services to help achieve customer their  goals

·        
Provide
services in the remotest part of the country

Values:-

·        
Be
honest transparent and ethical

·        
Respect
customers

 

Aggregate Deposits grew by 18.14% in FY 2017 reason being risein savings
bank account  growing  by 27.81%

 

Growth in Advances has remained subdued. The gross advances crossed the
Rs. 1600000 crore mark. Much of the growth in advances came from retail
segments including home loans and auto loans . Overall retail loans grew by
21.18%

 

There are sectors where bank reduced the exposure which include telecom ,
roads and ports segments , Engineering sector , Textiles and Iron and Steel

 

With the opening of 386 new branches the branch network of bank has
reached 17170 out of which 64% are in rural and semi urban areas. With
extensive global presence SBI has 195 foreign offices spread across 36
countries in all the continents. The international banking arm of the bank has
consistently been a major contributor to the business and profit of the banks.

 

With over 28 crore State Bank Debit Cards SBI continues to lead in Debit
Card Issuance in the country. SBI with its Associate banks has one of the
largest ATM networks in the world with 59200 ATMs

 

Bank has so far installed 6400 Recyclers to provide 24*7 cash
withdrawal  and deposit facilities. State
Bank Group’s ATM network transacts 54.06% of the country’s total ATM
transaction

 

State Bank Buddy- The Mobile Wallet is another choice of payment  channel 
made available to both customers and non- customers and the Wallet is
available in 13 languages.

 

Profitability improved during the financial year. The bank chalked robust
performance in non- interest income , profit on sale of investments , forex
income.

 

In-terms of segment wise contribution to stressed assets , contribution
by SME , Agri, Retail and International Banking registered a net decline

 

Capital Adequacy Ratio of the bank under Basel III stood at 13.11% in
March 2017and Tier I at 10.35%

 

 

 

 

 

Earnings In
FY 2017

 

Expenditure
in FY 2017

 

 

Performance
Indicators:-

         Total Income ( in Crores)

 

Operating
Profit ( in Crores)

 

Net Profit (
in crores)

 

Return On
Assets (in %)

 

 

Return On
Equity (in%)

 

EPS (in Rs)

 

 

Board Of
Directors :-

·        
Chairman

        Arundhati Bhattacharaya

 

 

·        
Managing
Direcors:-

1.      B Sriram

2.      Rajnish Kumar

3.      PK Gupta

4.      Dinesh Kumar Khara

 

·        
Directors
under Sec 19(c) of SBI Act

1.      Sanjiv Malhotra

2.      MD. Mallaya

 

 

·        
Director
under Sec 19(d) of SBI Act

1.      Dr. Girish K Ahuja

2.      Dr. Pushpendra Rai

 

 

·        
Director
under Section 19(e) of SBI Act

1.      Ms. Anjuly Chib Duggal

 

 

·        
Director
under Section 19 (f) of SBI Act

1.       Chandan Sinha

 

 

 

 

 

 

 

 

 

 

 

 

 

CHAPTER 02 – INDUSTRY
ANALYSIS (PESTEL Analysis)

 

·        
P
(POLITICAL) :- These are all about how and what degree a govt. intervenes in
the economy which can include govt. policy  , political scenario in overseas market ,  Foreign Trade Policy , Tax Policy etc.

 

 

·        
E
(ECONOMIC) :- They have a significant impact on how an organization does
business and also how profitable they are. Factors include economic growth ,
Interest rates etc.

These can be further broken down into
micro and macro economical factors. Macro Economical factors deal with the management
of demand in any given economy. Micro Environmental factors are all about the
way people spend their incomes

 

 

·        
S
(SOCIAL) :- Social Factors are the areas that involve the shared belief and
attitudes of the population. These include population growth , age distribution
, career attitudes etc.

 

 

·        
T
(TECHNOLOGICAL) :- Technological Factors include new ways of producing goods
and services in the market , new ways of distributing goods and services , new
ways of communicating with the target market.

 

 

 

·        
E
(ENVIRONMENTAL) :- Environmental Factors have become important because of
increasing scarcity of raw materials , pollution targets , carbon footprint
targets set by the govt.

 

 

·        
L
(LEGAL) :-  Legal Factors include health
and safety , equal opportunities , consumer rights and laws , product labelling
and product safety. If an organization trades globally this become tricky to
get right as each country has its own set of rules and regulations   

 

 

 

 

 

 

PESTEL Analysis of State Bank Of
India

 

·        
Political
Environment  affects all sections of the
economy and weakness in indian political system leads to delayed decision
making and  implementation .  RBI intervens in the  money market taking charge of the  repo and reverse repo rates to ease the
pressure from the economy  and also plays
an important role in backing up  SBI

 

 

·        
Economic
Environment . With the merger of SBI with its Associates it will bring strength
to the indian banking system in general and public sector banks in particular

 

 

·        
Social
Environment. With changing lifestyles of people in this fast moving life people
demand better goods and services and SBI has successfully fulfilled  their  customer needs

 

 

·        
Technological
Environment. With introduction  of SBI
Mingle ,  BHIM Aadhar  etc. customers are becoming more technology
friendly making it the leader in the debit card issuance in india

 

 

·        
Environmental
Factors. India  is expected to maintain
robust growth around  the globe and
banking sector directly contributes to the  economy and SBI has taken significant steps to
strengthen the banking industry as SBI is a major player in the banking
industry for the indian economy

 

 

·        
Legal
Factors. RBI should make sure to frame policies for the betterment of  banking industry and  the support of RBI is essential for SBI to
grow

 

 

 

 

 

 

 

 

 

 

 

                CHAPTER 03-  COMPANY ANALYSIS ( PORTER FIVE FORCES MODEL )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SBI  PORTER 5 FORCES ANALYSIS

 

 

 

·       Competition from Citibank, PNB has
made the threat of competition high for SBI

 

·       Because of strict regulations by RBI
and other bodies the possibility of establishment of a new banking business in
india is low

 

·       With coming up of other companies who
provide financial services to the customers 
the count of substitutes rises to medium

 

·       SBI buys in bulk making it ideal in
the eyes of supplier

 

·       Bargaining Power Of Buyers is high
because of perfect competition in market

 

 

 

 

 

 

 

 

 

 

 

BCG MATRIX

 

 
 
 
               STARS
 
 
 
 
 

 
   
      QUESTION MARKS

 
 
         CASH COWS
 
 
        

   
               DOGS

 

 

 

 

 

 

 

With increasing income of people and
upcoming opportunities in the banking industry banks have got a platform to
rise and mark their impression on the people and the recent merger of SBI with
its associates had made SBI a more strong player in the banking industry so we
can keep SBI in CASH COWS column

 

 

 

PORTER GENERIC FORCES

 
 
 
 
 
 
COST LEADERSHIP

 
 
 
 
 
 
DIFFERENTIATION

 
 
 
          COST FOCUS

 
 
 
     DIFFERENTIATION FOCUS

 

 

                                                                                                                                   

 

 

 

 

 

 

 

 

 

 

 

SBIs PORTER GENERIC FORCES ANALYSIS

 

Minimizing the cost of products is
the main focus of Cost Leadership Strategy

 

Making different products and
services is the focus of differentiation strategy

 

           SBI has
successfully integrated both Cost Leadership and Differentiation Strategy  and it    can be proved with the following points:-

 

·        
SBI’s
profit has increased and cost has gone down in FY 2016-17

·        
With
merger with associates SBI’s market share has chalked up with customer base of
more than 420 million, 59000 ATMs with 386 new branches leading to increase in
advance and deposits for the FY2016-17

·        
 Reduction in  Acquisition Cost with the help of analytics

·        
Largest
Debit Card issuer in india

·        
Bringing
SBI INTOUCH for customers

·        
Introduction
of Mobile Cash  for  rural population

·        
Maximize
operational efficiency for monitoring different portfolios

·        
Bringing
in  Cash @ POS

·        
SBI
Digital Village to digitalize villages

 

 

 

 

 

 

 

 

 

 

 

CHAPTER 04 – CONCLUSION

 

Keeping in mind  the recent SBI merger scenario and all the
above findings followings are my view point on SBI

 

·        
Rate
of Non Performing Assets  Will go  down

·        
SBIs
presence will back the economy strongly

·        
Branches
under required regions will be opened with shutting down of duplicate branches

·        
SBI
enters the top 50 largest banks of the world

·        
Diversification
of portfolio resulting in less banking failure

·        
Financing
of  titanic  projects  leading  to economic development of the country

·        
Increased
 efficiency of the rationalized banks

x

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