INTRODUCTION commence retail banking. SBI already has a branch

INTRODUCTION OF THE COMPANY

STATE BANK OF INDIA

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State Bank Of
India is an Indian global public sector banking and financial services company.
It is a govt. owned corporation with its headquarters in Mumbai Maharashtra.

The bank
descends from the bank of Calcutta founded in 1806 via The Imperial Bank Of
India making it the oldest commercial bank.  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 in 1955. Govt. of India owned 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 govt. took over the stake held by the
Reserve Bank Of India.

SBI provides
a range of banking products through its network of branches in India and
overseas  including products aimed at
NRIs.

 In Aug2014, SBI held 11300 camps and
opened  over 3 million accounts by
September  which included 2.1 million
accounts in rural areas and 1.57 million accounts in urban areas. As of 2014-15
the bank had 191 overseas offices spread over 36 countries having the largest
presence in foreign markets among indian banks

In 1989 SBI
established an offshore bank SBI International Ltd. In Mauritius.  SBI International Mauritius Ltd. Amalgamated
with The Indian Ocean International Bank which has been doing retail banking
business in Mauritius since 1979 with the new name SBI Mauritius Ltd.

Today SBI
Mauritius Ltd. has branches covering major citis and  towns of Mauritius. Apart from Branch Banking
customers also have convenience of 24*7 ATM Banking. Bank also has a 24*7
robust internet banking channel enabling customers to work from their homes and
offices

In Nigeria
SBI operates as INMB Bank. The bank began in 1981 as the Indo-Nigerian Merchant
Bank and received permission in 2002 to commence retail banking. SBI already
has a branch in Shanghai and plans to open one in Tianjin. In Jan 2016 SBI
opened its first branch in Seoul Soth Korea following the continuous and
significant increase in trade due to the Comprehensive Economic Partnership
Agreement signed between New Delhi and Seoul in 2009.

SBI acquired
the control of seven associate banks in 1960. They were the seven regional
banks of former indian princely states all of them which were renamed with the
prefix “State Bank”. 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 State Bank Of India and all its associate banks use
the same blue keyhole logo.

The plans
for making SBI a mega bank with trillion dollar business by merging associate
banks started in 2008 and in September the same year SBS merged with SBI. The
very next year State Bank Of Indore also merged with SBI. In the same year
another subsidiary named Bharatiya Mahila Bank was formed

The
negotiations for merging of 6 associate banks by acquiring their business
started in 2016.  The merger of these 6
subsidiaries was approved by Union Cabinet on Jun 15 2016.

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 Equity
shares of SBI are listed on the Bombay Stock Exchange and National Stock
Exchange. Its GDRs are listed on the London Stock Exchange.

SBI 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
customer first

      Mission:-

·        
Prompt
, polite and proactive with customers

·        
Create
product and services to help achieve customer goals

·        
Provide
services in the remotest part of the country

Values:-

·        
Be
honest transparent and ethical

·        
Respect
customers

 

In FY 2017 aggregate deposits of banks have registered a growth of
18.14%. The rise in aggregate deposits is due to surge in savings bank account
which grew 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

 

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