HISTORY OF STATE BANK OF INDIA

The roots of the State Bank of India rest in the first decade of 19th
century, when the Bank of Calcutta, later renamed the Bank of
Bengal, was established on 2 June 1806. The Bank of Bengal and two
other Presidency banks, namely, the Bank of Bombay (incorporated
on 15 April 1840) and the Bank of Madras (incorporated on 1 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 reorganized banking entity took as its name
Imperial Bank of India. The Imperial Bank of India continued to
remain 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. On 30 April 1955
the Imperial Bank of India became the State Bank of India. The Govt.
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.

Offices of the Bank of Bengal

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 Sept 13, 2008, State
Bank of Saurashtra, one of its Associate Banks, merged with State
Bank of India.
SBI has acquired local banks in rescues. For instance, in 1985, it
acquired Bank of Cochin in Kerala, which had 120 branches. SBI was
the acquirer as its affiliate, State Bank of Travancore, already had an
extensive network in Kerala.

ASSOCIATE BANKS OF STATE BANK OF INDIA

There are six associate banks that fall under SBI, and together these
six banks constitute the State Bank Group. All use the same logo of a
blue keyhole and all the associates use the "State Bank of" name
followed by the regional headquarters' name. Originally, the then
seven banks that became the associate banks belonged to princely
states until the government nationalized them between October, 1959
and May, 1960. In tune with the first Five Year Plan, emphasizing the
development of rural India, the government integrated these banks
into State Bank of India to expand its rural outreach. There has been a
proposal to merge all the associate banks into SBI to create a "mega
bank" and streamline operations. The first step along these lines
occurred on 13 August 2008 when State Bank of Saurashtra merged
with State Bank of India, which reduced the number of state banks
from seven to six. Furthermore on 19th June 2009 the SBI board
approved the merger of its subsidiary, State Bank of Indore, with
itself. SBI holds 98.3% in the bank, and the balance 1.77% is owned
by individuals, who held the shares prior to its takeover by the
government.
The acquisition of State Bank of Indore will help SBI add 470
branches to its existing network of 11,448. Also, following the
acquisition, SBI’s total assets will inch very close to the Rs 10-lakh
crore mark. Total assets of SBI and the State Bank of Indore stood at
Rs 998,119 crore as on March 2009.

GROWTH OF STATE BANK OF INDIA

State Bank of India has often acted as guarantor to the Indian

Government, most notably during Chandra Shekhar's tenure as Prime
Minister of India. With 11,448 branches and a further 6500+ associate
bank branches, the SBI has extensive coverage. State Bank of India
has electronically networked all of its branches under Core Banking
System (CBS). The bank has one of the largest ATM networks in the
region. More than 8500 ATMs across India. The State Bank of India
has had steady growth over its history, though it was marred by the
Harshad Mehta scam in 1992. In recent years, the bank has sought to
expand its overseas operations by buying foreign banks. It is the only
Indian bank to feature in the top 100 world banks in the Fortune
Global 500 rating and various other rankings
 INTERNATIONAL PRESANCE OF SBI

The bank has 92 branches, agencies or offices in 32 countries. It has

branches of the parent in Colombo, Dhaka, Frankfurt, Hong Kong,
Johannesburg, London and environs, 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.
SBI operates several foreign subsidiaries or affiliates. In 1990 it
established an offshore bank, State Bank of India (Mauritius). It has
two subsidiaries in North America, State Bank of India (California),
and State Bank of India (Canada). In 1982, the bank established its
California subsidiary, named State Bank of India (California), which
now has eight branches - seven branches in the state of California and
one in Washington DC which was recently opened on 23rd
November, 2009. The seven branches in the state of California are
located in Los Angeles, Artesia, San Jose, Canoga Park, Fresno, San
Diego and Bakersfield. The Canadian subsidiary too dates to 1982
and has seven branches, four in the greater 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 the rest. In Indonesia it
owns 76% of PT Bank Indo Monex.
State Bank of India already has a branch in Shanghai and plans to
open one up in Tianjin.[1]
 BOARD OF DIRECTOR OF SBI
Sr. No
Name of Director Sec. of SBI Act, 1955
.
Shri O.P. Bhatt
1. 19(a)
Chairman
Shri S.K. Bhattacharyya
2. 19(b)
MD & CC&RO
Shri R. Sridharan
3. 19(b)
MD & GE(A&S)
4. Dr. Ashok Jhunjhunwala 19(c)
5. Shri Dileep C. Choksi 19(c)
6. Shri S. Venkatachalam 19(c)
7. Shri. D. Sundaram 19(c)
8. Dr. Deva Nand Balodhi 19(d)
9. Prof. Mohd. Salahuddin Ansari 19(d)
10. Dr.(Mrs.) Vasantha Bharucha 19(d)
11. Dr. Rajiv Kumar 19(d)
12. Shri Ashok Chawla 19(e)
13. Smt. Shyamala Gopinath 19(f)
 JOURNEY AND VISION OF SBI

The State Bank of India, the country’s oldest Bank and a premier in
terms of balance sheet size, number of branches, market capitalization
and profits is today going through a momentous phase of Change and
Transformation – the two hundred year old Public sector behemoth is
today stirring out of its Public Sector legacy and moving with an
agility to give the Private and Foreign Banks a run for their money.

The bank is entering into many new businesses with strategic tie ups –
Pension Funds, General Insurance, Custodial Services, Private Equity,
Mobile Banking, Point of Sale Merchant Acquisition, Advisory
Services, structured products etc – each one of these initiatives having
a huge potential for growth.

The Bank is forging ahead with cutting edge technology and

innovative new banking models, to expand its Rural Banking base,
looking at the vast untapped potential in the hinterland and proposes
to cover 100,000 villages in the next two years.

It is also focusing at the top end of the market, on whole sale banking
capabilities to provide India’s growing mid / large Corporate with a
complete array of products and services. It is consolidating its global
treasury operations and entering into structured products and
derivative instruments. Today, the Bank is the largest provider of
infrastructure debt and the largest arranger of external commercial
borrowings in the country. It is the only Indian bank to feature in the
Fortune 500 list.

The Bank is changing outdated front and back end processes to

modern customer friendly processes to help improve the total
customer experience. With about 8500 of its own 10000 branches and
another 5100 branches of its Associate Banks already networked,
today it offers the largest banking network to the Indian customer.
The Bank is also in the process of providing complete payment
solution to its clientele with its over 8500 ATMs, and other electronic
channels such as Internet banking, debit cards, mobile banking, etc.
With four national level Apex Training Colleges and 54 learning
Centres spread all over the country the Bank is continuously engaged
in skill enhancement of its employees. Some of the training
programmes are attended by bankers from banks in other countries.

The bank is also looking at opportunities to grow in size in India as

well as Internationally. It presently has 82 foreign offices in 32
countries across the globe. It has also 7 Subsidiaries in India – SBI
Capital Markets, SBICAP Securities, SBI DFHI, SBI Factors, SBI
Life and SBI Cards - forming a formidable group in the Indian
Banking scenario. It is in the process of raising capital for its growth
and also consolidating its various holdings.

Throughout all this change, the Bank is also attempting to change old
mindsets, attitudes and take all employees together on this exciting
road to Transformation. In a recently concluded mass internal
communication programme termed ‘Parivartan’ the Bank rolled out
over 3300 two day workshops across the country and covered over
130,000 employees in a period of 100 days using about 400 Trainers,
to drive home the message of Change and inclusiveness. The
workshops fired the imagination of the employees with some other
banks in India as well as other Public Sector Organizations seeking to
emulate the programme.

The CNN IBN, Network 18 recognized this momentous

transformation journey, the State Bank of India is undertaking, and
has awarded the prestigious Indian of the Year – Business, to its
Chairman, Mr. O. P. Bhatt in January 2008.

EVOLUTION OF SBI

The origin of the State Bank of India goes back to the first decade
of the nineteenth century with the establishment of the Bank of
Calcutta in Calcutta on 2 June 1806. Three years later the bank
received its charter and was re-designed as the Bank of Bengal (2
January 1809). A unique institution, it was the first joint-stock bank
of British India sponsored by the Government of Bengal. The Bank
of Bombay (15 April 1840) and the Bank of Madras (1 July 1843)
followed the Bank of Bengal. These three banks remained at the
apex of modern banking in India till their amalgamation as the
Imperial Bank of India on 27 January 1921.
Primarily Anglo-Indian creations, the three presidency banks came
into existence either as a result of the compulsions of imperial
finance or by the felt needs of local European commerce and were
not imposed from outside in an arbitrary manner to modernise
India's economy. Their evolution was, however, shaped by ideas
culled from similar developments in Europe and England, and was
influenced by changes occurring in the structure of both the local
trading environment and those in the relations of the Indian
economy to the economy of Europe and the global economic
framework.

Bank of Bengal H.O.

ESTABLISHMENT

The establishment of the Bank of Bengal marked the advent of

limited liability, joint-stock banking in India. So was the associated
innovation in banking, viz. the decision to allow the Bank of Bengal
to issue notes, which would be accepted for payment of public
revenues within a restricted geographical area. This right of note
issue was very valuable not only for the Bank of Bengal but also its
two siblings, the Banks of Bombay and Madras. It meant an
accretion to the capital of the banks, a capital on which the
proprietors did not have to pay any interest. The concept of deposit
banking was also an innovation because the practice of accepting
money for safekeeping (and in some cases, even investment on
behalf of the clients) by the indigenous bankers had not spread as a
general habit in most parts of India. But, for a long time, and
especially upto the time that the three presidency banks had a right
of note issue, bank notes and government balances made up the bulk
of the investible resources of the banks.
The three banks were governed by royal charters, which were
revised from time to time. Each charter provided for a share capital,
four-fifth of which were privately subscribed and the rest owned by
the provincial government. The members of the board of directors,
which managed the affairs of each bank, were mostly proprietary
directors representing the large European managing agency houses
in India. The rest were government nominees, invariably civil
servants, one of whom was elected as the president of the board.

Group Photogaph of Central Board (1921)

BUSINESS

The business of the banks was initially confined to discounting of

bills of exchange or other negotiable private securities, keeping cash
accounts and receiving deposits and issuing and circulating cash
notes. Loans were restricted to Rs. one lakh and the period of
accommodation confined to three months only. The security for such
loans was public securities, commonly called Company's Paper,
bullion, treasure, plate, jewels, or goods 'not of a perishable nature'
and no interest could be charged beyond a rate of twelve per cent.
Loans against goods like opium, indigo, salt woollens, cotton, cotton
piece goods, mule twist and silk goods were also granted but such
finance by way of cash credits gained momentum only from the
third decade of the nineteenth century. All commodities, including
tea, sugar and jute, which began to be financed later, were either
pledged or hypothecated to the bank. Demand promissory notes
were signed by the borrower in favour of the guarantor, which was
in turn endorsed to the bank. Lending against shares of the banks or
on the mortgage of houses, land or other real property was, however,
forbidden.

Indians were the principal borrowers against deposit of Company's

paper, while the business of discounts on private as well as salary
bills was almost the exclusive monopoly of individuals Europeans
and their partnership firms. But the main function of the three banks,
as far as the government was concerned, was to help the latter raise
loans from time to time and also provide a degree of stability to the
prices of government securities.

ASSOCIATE BANKS OF SBI AND IT,S BUSINESS

State Bank of India has the following six Associate Banks (ABs)
with controlling interest ranging from 75% to 100%.
1. State Bank of Bikaner and Jaipur (SBBJ)
 2. State Bank of Hyderabad (SBH)
3. State Bank of Indore (SBIr)
4. State Bank of Mysore (SBM)
5. State Bank of Patiala (SBP)
6. State Bank of Travancore (SBT)

The six ABs have a combined network of 4502 branches in India

which are fully computerized and 2410 ATMs networked with SBI
ATMs, providing value added services to clientele.

The combined net profit of these banks increased by 12% over the
previous year to reach Rs.2277.69 crores. Deposits and advances
grew by 19% and 22%, respectively, during the year. The combined
Net NPA ratio of all ABs was at 0.61% as on 31st March 2008.The
highlights of performance of the six ABs for the year 2007-08 are as
follows:
(Rs. In crores)
Deposits 234168
Loans 178376
Investments 75147
Total Assets 268285
Return on
0.86%
Assets
No. of
4502
Branches

Url
SBBJ www.sbbjbank.com
SBH www.sbhyd.com
SBIR www.indorebank.org
SBM www.mysorebank.com
SBP www.sbp.co.in
SBT www.statebankoftravancore.com
 SBICI Bank Ltd (Banking Subsidiary, fully owned by SBI)

SBICI Bank Ltd has two branches, fully computerised, operating in

Mumbai. The Bank recorded a net profit of Rs.12.85 crores during
2007-08. Deposits, Loans and Investments were at Rs.522.01 crores,
Rs.354.99 crores and Rs.143.59 crores, respectively, as at 31st
March 2008. Return on Assets was at 1.12% while Capital
Adequacy Ratio stood at 27.36% as on 31.3.2008.
For more details please visit the website detailed as under:-
FOREIGN SUBSIDIARIES

SBIInternational(Mauritius)Ltd.,OffshoreBank

(A subsidiary of State Bank of India)

State bank of India International (Mauritius) Ltd is one of the first

offshore banks to be established in Mauritius in 1990, with a paid up
capital of USD 10 Million. The Bank has had a consistent record of
having earned profits since its very first year of operations.
SBIIML, with the expertise of its management and personnel, is
customer focussed, and offers to all its clients, all over the world, high
quality, cost effective professional services and innovative products.
The Bank lays emphasis on technology, which is an integral part of its
operations having a significant impact on services rendered. It has,
presently, clients spread over 40 countries.
The principal activities include:
• Acceptance of deposits in foreign currencies mainly US Dollar,
Pound Sterling, Euro and also other currencies. Attractive rates
of interest are offered.
• International remittances in all major currencies through
SWIFT, quickly and effectively.
• Loans/syndications in major currencies, like
Euro/Dollar/Japanese Yen.
• Trade Services, including issuance of/negotiations under
documentary letters of credits and issuance of bank guarantees.
• Hedging of exchange and interest rate risks on behalf of
customers.
• Sales and Purchases of foreign currencies in the Spot and
Forward Market.
• Rendering custodial services for offshore funds registered in
Mauritius.
• Products tailored to suit the requirements of customers.
The Bank adopts the best Corporate Governance practices, and
comprehensive risk management policies and systems ensure
effective control of risks. A strong capital base, and near zero non-
performing assets further add to the strength and stability of the
Bank.

FINANCIAL PERFORMANCEAS ON 31.03.2004

USD RS. IN
ITEMS
MIO CRORES
RESOURCES
Capital & Reserves 19.10 83.50
Deposits 112.39 491.34
Borrowings 38.14 166.74
Other Liabilities 7.30 31.91
Total 176.93 773.49
DEPLOYMENT
Investments & Placements 37.84 165.43
Advances 132.42 578.91
All other Assets 6.67 29.16
Total Assets 176.93 773.50
NET PROFIT 1.14 4.98
 STATE BANK OF INDIA (CALIFORNIA)

State Bank of India (California), a wholly owned subsidiary in

California is a California State Chartered Bank and a member of the
Federal Deposit Insurance Corporation. With eight full service
branches, the Bank caters to the Banking needs of the community,
ethnic and non-ethnic alike, through various deposit and loan
schemes. SBIC takes prides in providing state-of-the-art remittance
facility to its customers. The Bank also provides Internet Banking,
Tele-Banking, ATM service and Credit Cards.

FINANCIAL PERFORMANCE AS ON 31.03.2009

USD RS. IN
ITEMS
MIO CRORES

RESOURCES

Capital & Reserves 89.01 451.46

Deposits 571.45 2898.39

Borrowings 84.65 429.35

 Other Liabilities 4.21 21.35

Total 749.32 3800.55

DEPLOYMENT

Investments & Placements 178.26 904.13

Advances 497.05 2521.04

All other Assets 74.01 375.38

Total Assets 749.32 3800.55

NET PROFIT 3.12 15.82

CONTACT DETAILS:
Address
STATEBANKOFINDIA(California),
707WilshireBlvd.
19thFloor,Suite1995
LosAngelesCA90017,
USA
Tel.:213)623-7250
FAX:(213)622-2069/622-8082
Cable:SBIC
SWIFT:SBCAUS6L

ContactPerson:

Mr. Dinesh Pandey-President & CEO

For more details on our subsidiary
The above information is liable to change. Current position should be
ascertained from the Bank.
 STATE BANK OF INDIA (CANADA)

State Bank of India (Canada) - a wholly owned subsidiary of State

Bank of India - has been operating in Canada at four locations
Toronto ,Vancouver, Surrey and Mississauga , extending various
facilities to the Indians settled in Canada such as remittance of funds
through a network of over 9000 offices of State Bank of India, the
largest commercial bank in India and through the branches of its
Associate Banks. SBI(C) has also been instrumental in fostering trade
ties between India and Canada by extending financial, advisory and
logistic support to Canadian and Indian corporate.

FINANCIAL PERFORMANCE AS ON 31.03.2004

USD RS. IN
ITEMS
MIO CRORES

RESOURCES

Capital & Reserves 29.133 97.65

Deposits 133.047 445.96

Borrowings 33.393 111.93

Other Liabilities 5.482 18.37

 Total 201.055 673.91

DEPLOYMENT

Investments & Placements 15.258 51.13

Advances 169.782 569.11

All other Assets 16.015 53.67

Total Assets 201.055 673.91

NET PROFIT/(LOSS) (0.664) (2.22)

CONTACT DETAILS:
Address
StateBankofIndia
200BayStreet,Suite#1600,
RoyalBankPlaza,NorthTower,
Toronto,OntarioM5J2J2,Canada
Tel.:(416)8650414
FAX:(416)8651735/8650324
Cable:STAT
SWIFT:SBINCATX

ContactPerson

P Nandakumaran - President & CEO

For more details on our subsidiary
The above information is liable to change. Current position should be
ascertainedfromtheBank.
 SBI Life Insurance Company Ltd (SBI LIFE)

SBI Life Insurance, India’s largest private life insurance, is a joint

venture between State Bank of India and BNP Paribas Assurance SBI
owns 74% of the total capital and BNP Paribas Assurance the
remaining 26%. SBI Life Insurance has an authorized capital of Rs.
2,000 crore and a paid up capital of Rs 1,000 crores.

BNP Paribas Assurance is the insurance arm of BNP Paribas - Euro

Zone’s leading Bank. BNP Paribas, part of the worlds top 10 groups
of banks by market value and part of Europe top 3 banking
companies, is one of the oldest foreign banks with a presence in India
dating back to 1860. BNP Paribas Assurance is the fourth largest life
insurance company in France, and a worldwide leader in Creditor
insurance products offering protection to over 50 million clients. BNP
Paribas Assurance operates in 41 countries mainly through the banc
assurance and partnership model.

SBI Life Insurance’s mission is to emerge as the leading company

offering a comprehensive range of Life Insurance and pension
products at competitive prices, ensuring high standards of customer
service and world class operating efficiency.

SBI Life has a unique multi-distribution model encompassing Banc

assurance, Agency and Corporate Solutions. SBI Life extensively
leverages the SBI Group relationship as a platform for cross-selling
insurance products along with its numerous banking product packages
such as housing loans and personal loans. Agency Channel,
comprising of the most productive force of over 68,000 Insurance
Advisors, offers door to door insurance solutions to customers.

SBI Life’s Key Accomplishments:

· Bagged the coveted personal finance award-Outlook Money NDTV
Profit “best Life Insurer 2008”.
· Globally topped at the prestigious MDRT 09, in terms of number of
Million Dollar Round Table (MDRT) members.
· First life insurer to receive CRISIL’s highest financial rating
AAA/Stable. ICRA too has assigned iAAA rating indicating
highest claims paying ability to SBI Life Insurance.
· Retains ISO 9001:2000 certificate for superior claim settlement
process

Non banking subsidiary

The Bank has the following Non-Banking Subsidiaries in India :

1. SBI Capital Markets Ltd
2. SBI Funds Management Pvt Ltd
3. SBI Factors & Commercial Services Pvt Ltd
4. SBI DFHI Ltd
SBI Capital Markets Ltd (SBICAP)

SBICAP undertakes merchant banking activities, advisory services,

project appraisal, credit syndication and securities broking.

SBICAP’s current focus is on infrastructure project advisory and

syndication mandates, particularly in sectors, such as, urban
infrastructure and power, which are reckoned as the growth drivers.
The other focus areas are public issues of equity, book-building
issues, debt placements, broking, and sales and distribution.
During the year, SBICAPs forged ahead in issue management, project
advisory and structured finance, sales & distribution. It focused on
infrastructure project advisory and syndication mandates, particularly
in the energy sector, which is reckoned as the critical growth driver in
the growth of the economy.

On the international front SBICAPs bagged an infrastructure (water)

advisory assignment from the Ministry of National Economy, Oman
and was an integral part of the team effort for SBI’s first acquisition
of a bank overseas. It was also associated with SBI for providing
advisory in respect of participation of Societe Generale Asset
Management, France in SBI Mutual Funds.

It handled seven public issues out of the thirty four issues, which hit
the primary market during the period. The Company recorded an
improved financial performance during the year with gross income
amounting to Rs.175.06 crore as against Rs.142.75 crore in the
previous year, a y-o-y growth of approx. 23%. PAT of Rs.88.12 crore
as against Rs. 63.23 crore in the last year shows a y-o-y growth of
approx.40%.

SBI Funds Management Pvt Ltd (SBI FUNDS)

SBI FUNDS is the Asset Management Company (AMC) set up

for managing the affairs of SBI Mutual Fund.

During 2003-04, SBI FUNDS reported a total inflow of Rs.12,450

crore in the open-ended funds. Total redemption amounted to
Rs.10,523 crore, leaving a net inflow of Rs.1,927 crore for the year as
against a net inflow of Rs.686 crore in the previous year. The total net
assets of domestic funds under management stood at Rs.5,340 crore
as on the 31st March 2004 as against Rs.3,312 crores as on the 31st
March 2003.

SBI FUNDS recorded a profit after tax of Rs.10.09 crore in 2003-

2004, as against Rs.6.21 crore in the preceding year and paid a
dividend of 10%. The Bank holds 100% equity of the Company.

SBI DFHI Ltd (SBI DFHI)

SBI DFHI, a Primary Dealer (PD), undertakes trading in Government
and Non-Government securities, in the Debt Markets.

SBI DFHI Ltd came into existence in April 2004 with the
amalgamation of Discount and Finance House of India (DFHI), a
subsidiary of RBI & SBI Gilts Ltd, a subsidiary of SBI. It is a major
participant in the wholesale Debt Market both in the Primary and
Secondary Market segment with an outright turnover of Government
Securities and Treasury Bills in 2007-08 at Rs.54, 919.39 crores and
Rs.5, 428 crores respectively.

SBI DFHI Ltd is also active in retailing of Government securities,

including small lots, and are the distributors of Mutual Fund products
of all leading funds, actively participating in the domestic interest rate
derivatives and equities/equity futures markets.

SBI DFHI posted a post-tax profit of Rs.85.68 crores for the year
2007-08 and paid a dividend of 10%. The State Bank Group holds
67% of the company’s share capital.

It posted an impressive turnover of Government Securities and

Treasury Bills in 2007-08 at Rs.54,919.39 crores and Rs.5,428 crores
respectively.

SBI Factors and Commercial Services Pvt Ltd (SBI FACTORS)

SBI Factors, a subsidiary of State bank of India (SBI) is one of the
leading factoring companies in India with an asset base of Rs. 700.10
crores as on 30.09.2005. It was established in February 1991 with the
primary objective to provide domestic factoring services to Small and
Medium Enterprises (SMEs). Factoring is a Collection and finance
service designed to improve the cash flow position of SMEs by
turning their credit invoices into ready cash. The major strength of the
company is that it has put in place a technology driven platform for
offering integrated receivables management. SBI and its Associates
Banks hold 70% stake in SBI Factors.

SBIF offers Domestic Factoring With Recourse and Without

Recourse. Purchase Bill Factoring, Factoring of Usance Bills Under
LC, Channel Financing of Dealers / Distributors and Export Factoring
Facilities. All its products have been well received by its clients.

SBIF has ten branches all over the country and it has plans to open
three more branches during the year. It has achieved a turnover of Rs.
1489.54 Crores with Prepayment Outstanding of Rs. 459.35 crores for
the year ended 31.03.2005. The profit before tax was Rs. 9.64 crores
and PAT Rs. 6.12 Crores for the year 2004-05. It has recorded a NIL
NPA position as at 31.03.2005. It has declared a dividend of 8%
during the year 2005. It has a market share of 40.30% as on
30.09.2005.

SBI Cards & Payments Services Pvt. Ltd. (SBICPSL)

1. Launch of SBI Delhi, SBI Hyderabad and SBI Bangalore city

affinity cards.
2. Launch of “Flexi pay”, an instalment loan programme.
3. Market leadership in VISA petrol spends in India.
4. Launch of e-bill payment of SBI Credit Card for SBI account
holders.
5. Launch of Elite card which is offered by invitation only.
6. Ten per cent maiden dividend declared