Professional Documents
Culture Documents
The word BANK is derived from the Italian word Banco, the Latin word
Bancus and the French word Banque which means Bench. In olden days money
lenders used to exhibit the coins of different countries on separate bench and the business of
exchanging the coins were carried on through those money lenders, especially in Greece,
Italy and England. Whenever these money lenders were not in position to convert the
currency of one country into the currency of another, people virtually broke up their benches.
Hence the word Bankrupt. The word bank has also originated from the German word
banck which means joint stock fund or a common fund, collected from the public for the
purpose of financing the needy people.
DEFINITION OF BANK
It is very difficult to define the term bank or banker even the best authorities on
banking have failed to give the definition of this term.
The word bank is generally associated with an institution dealing in money raised
from the public.
In general terms, The Business activity of accepting and safeguarding money owned
by other individuals and entities, and then lending out this money in order to earn a Profit.
So we can say that banking is a company, which transacts the business of banking.
According to Indian Banking Regulation Act 1949, section1(b) defines Banking as
Accepting for the purpose of lending or investing of deposits of money from the public
repayable on demand or otherwise and withdrawal of cheques, drafts, orders or otherwise.
activities. Banking in India originated in the last decades of the 18th century. Earlier in
British India, mainly the employees at the east India Company established banks and they
were called the Agency House. It is theses Agency Houses which paved the way for the
establishment of joint stock bank to be established in India. The bank of Hindustan was the
first joint stock bank to be established in India under European management. But soon it
failed. The first banks were The Central Bank of India which started in 1786, and The
Bank of Hindustan, both of which are now defunct. The oldest bank existence in India was
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 charter from The British East India Company. For many
years the Presidency banks acted as quasi-central banks, as did their successor. The three
banks merged in 1921 to form The Imperial Bank of India, which upon India's
independence, became the State Bank of India.
After the independence, Reserve Bank of India was nationalized and given wide powers.
Currently, India has 96 Scheduled Commercial Banks, 27 public sector banks, 31 private
banks and 38 foreign banks.
Today, banks have diversified their activities and are getting into new products and services
that include opportunities in credit cards, consumer finance, wealth management, life and
general insurance, investment banking, mutual funds, pension fund regulation, stock broking
services, etc.
Further, most of the leading Indian banks are going global, setting up offices in foreign
countries, by themselves or through their subsidiaries.
Government Initiatives
The Government has announced a capital infusion of Rs 6,990 crore (US$ 1.1 billion)
in nine state run banks, including State Bank of India (SBI) and Punjab National Bank
(PNB), but based on new efficiency parameters such as return on assets and return on
equity. In a statement, the finance ministry said, This year, the Government of India
has adopted new criteria in which the banks which are more efficient would only be
rewarded with extra capital for their equity so that they can further strengthen their
position."
The Union cabinet has approved the establishment of the US$ 100 billion New
Development Bank (NDB) envisaged by the five-member BRICS group as well as the
BRICS contingent reserve arrangement (CRA).
The RBI has decided to allow nominated banks to import gold, including coins, on a
consignment basis, extending its clarification issued in November 2014, which had
eased certain categories of gold imports.
To help Micro Small and Medium Enterprises (MSME), RBI has permitted setting up
of an exchange-based trading platform to facilitate financing of bills raised by such
small entities to corporate and other buyers, including government departments and
PSUs.
MACRO SCENARIO
In 2014, the banking industry was confronted with huge operating pressure as a result of the
weak recovery of the world economy, and the operating results varied in different countries.
The banking industry in the US, UK and China performed well, while that in the Euro Zone
and Japan remained sluggish. In 2015, the banking industry in the US, the UK and China is
expected to maintain smooth growth, and that in the Euro Zone and Japan will still face huge
growth pressure.
An economy's financial markets are critical to its overall development. Banking systems and
stock markets enhance growth, the main factor in poverty reduction. Strong financial systems
provide reliable and accessible information that lowers transaction costs, which in turn
bolsters resource allocation and economic growth. Indicators here include the size and
liquidity of stock markets; the accessibility, stability, and efficiency of financial systems; and
international migration and workers\ remittances, which affect growth and social welfare in
both sending and receiving countries.
After several years of stalled progress, the newly-elected government has begun to implement
measures to cut red tape, raise infrastructure investment, deregulate key parts of the economy,
and shrink the role of government, the World Bank said in its Global Economic
Prospects report released Tuesday. Implementation stepped up during the fourth quarter,
with the opening up of the coal industry to private investors, a deregulation of diesel prices to
reduce the fiscal subsidy bill, a relaxation of labor market laws, and a linking of cash
transfers with efforts to increase financial inclusion were all cited by the report as helping in
Indias progress towards supercharged growth.
While China has held the title as hardest-hitting heavyweight economy for years, it has been
suffering through a slowdown and may have to give up the belt in 2017, according to World
Bank projections in the report.
India has been struggling to emerge from Chinas shadow for more than a decade but in 2017
it may at last outgrow its neighbor to the north, expanding 7.0% that calendar year while
Chinas growth slows to 6.9%. Some other economistsincluding those at Goldman Sachs
predict India could outpace China as early as next year.
The World Bank projects that a few smaller economiesBhutan, Mozambique and Myanmar
for example will experience larger growth in 2017 but Indias 7.0% expansion will be the
fastest among the worlds 50 largest economies.
In the calendar year 2017, the globes combined gross domestic product expansion will only
be 3.2% with high-income countries expanding only 2.2% and developing countries on
average growing 5.4%, the World Bank report predicted.
Of course the end of 2017 is still a long way away and a lot of things will likely change in the
interim to force economists to fix their forecasts. In India, they will be watching closely to
see if the country continues to tweak laws and regulations to give companies and consumers
more confidence to invest and help the economy expand.
The implementation of reforms and deregulation in India should lift FDI. Investment, which
accounts for about 30% of GDP, should strengthen, and help raise growth to 7%, the World
Bank report said. This is contingent on strong and sustained progress on reforms. Any
slackening in the reform momentum could result in a more modest or slower pace of
recovery.
THEORETICAL BACKGROUND OF THE TOPIC
The theoretical study provides the back ground and the tools for NPA. It explains the
method of analysis, advantages and disadvantages, scope and limitations of the various tools
used to analyze the companys financial position.
The focus of the financial analysis is on key figures on the financial statements and
the significant relationships that exist between them. The analysis of financial statements is a
process of evaluating relationships that exist between them.
They
accelerate the economic growth of a country and steer the wheels of the economy towards its
goal of self reliance in all fields.
After an account has been classified as non-performing, a bank cannot charge interest
for current as well as previous years till it has been completely realized. Besides a bank
cannot look future interest till the account remains in the NPA category. Thus, according to
international practice income on NPA is not recognized on accrual basis but is booked
only when it is actually realized.
With the introduction of the norms the Health Code System ceased to be a supervisory
requirement but could not be used as a management tool.
The policy of income recognition was thus made objective and based on record of
recovery rather than on subjective considerations. These norms have been implemented in a
phased manner since 1993.
With the implementation of the revised norms on asset classification, income
recognition as provisioning of NPAs many banks accumulated losses and many analysts
raised concern about their future. However they remain because outlined for the overnight
development was the erosion in the banks Profitability as result of their past actions. The
level of gross NPAs was valued at 23% of advances in 1993.
Some other factor that led to banks posting huge losses were Directed lending to priority sector
Deterioration on credit portfolio
Heavy investments in government securities to meet the requirement of Statutory Liquidity
Ratio (S.L.R) and the Cash Reserve Ratio (C.R.R) at unviable rates.
Massive expansion into unviable rural and semi-urban branches.
Outdated work technology and low productivity.
However most of the commercial banks have taken measures since then abide by the
spirit of the NPA concept and thus an increase in the performance of the banks is visible.
Thus, the problem of NPA became apparent on 1993 following the introduction of
internationally accepted prudential accounting norms.
PRUDENTIAL NORMS
The introduction of prudential norms, i.e., income recognition and asset classification
norms into the Indian banking industry has drastically changed the competition of the Indian
banks. Many awhile the profit and loss account until the same is actually received or
recovered. Therefore all assets (loans or banks started to appear weak as the impact of NonPerforming Assets were introduced in 1993, it resulted in a considerable increase in provision
affecting profitability of banks tremendously).
Assets classification.
Provision norms.
Capital adequacy.
CONCEPT OF NPA:
The crucial factor that decides the performance of the banks and financial institutions
now a day is the spotting of Non-Performing Assets. Banks and other financial institutions
are now required to recognize such loans periodically and then classify the assets.
Banks are not allowed to book any income from Non-Performing Assets. Also, they
have to make provision for the NPAs, which impacts Profitability.
The concept of
classification of bank advances in several categories started in the late 1980s scheme but at
that time the terminology of NPA did not exist. It was early 1990s schemes when AngloAmerican model had several block of categorization of bank assets. Prior to introduction of
assets classification, banks in India had system of their own. However this accounting is not
in conformity with international standards.
Non-Performing Assets are a part of the banking throughout the world. It is not
peculiar to public sector banks and financial institutions in India. Incidence of NPA is higher
in public sector in comparison to private sector banks and foreign banks in India.
TRADITIONAL CONCEPT
Earlier to 1991 there was no such in Indian financial system. Before 1991 the Indian
financial institution followed traditional way of accounting procedures in respect of various
accounts strictly or otherwise. The system pertaining to repayment of principal amounts and
periodical interest are under:
First the bank or financial institutions used to credit the interest accounts in a
particular date or given pre-specified period (monthly/quarterly/half yearly/yearly),
irrespective of whether the borrower paid the interest or not.
There was no prompt action during those days for recovery of principal / installment
and the interest. Recovery action for interest and principal amount normally initiated either
at the financial year or at the end of the financial year or at the time of expiry of documents.
The standards set up by concerned authority are not up to the level of international
standard (for financial institutions and banks Basle committee norms are internationally
accepted standard). All borrower accounts were treated in the same manner till recovery
procedures were initiated like filing the suits for recovery of outstanding interest and loan
installment.
MODERN CONCEPT
NPAs came in to Indian financial system consequent to the introduction of prudential
accounting norms. An era of taking Profits (even unrealized) was changed to providing for
expected loss days of counting the chickens before eggs hatch are over.
From the financial year 1991-92 the new accounting system came into existence.
New accounting system classification of loans and interest were came in to effect. The
financial institutions and banks adopted income recognition rule. RBI also took keen interest
and laid several guidelines.
Income recognition
Assets classification
Provisions for bad and doubtful assets
Capital adequacy.
The origin of the problem of NPAs lies in the quality of managing credit risk by the
banks concerned, what is needed is having adequate preventive measures in place namely.
Fixing pre sanctioning appraisal responsibility and having an effective post-disbursement
supervision are essential. Banks concerned should continuously monitor loans to identify
accounts that have potential to become non-performing.
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NON-PERFORMING ASSETS
Assets including leased assets are treated as Non-Performing Assets if there is a threat
of loss or the recoverability of the dues are in doubt. A Non-Performing Assets (NPA) is
defined as a credit as a credit facility in which interest and/or installment of principal has
remained outstanding for a specific period of time.
An amount due under any credit facility is treated as past due when it has not been
paid within 30 days from the due date.
settlement systems, recovery climate, up gradation of technology in the banking system, etc.,
it was decided to dispense with past due concept. Accordingly, a non-performing asset
(NPA) shall be an advance.
Interest and /or installment of principal remain overdue for a period of more than 180 days in
discounted.
Interest and/or installment of principal remains overdue for two harvest seasons but for a
period not exceeding two half year in the case of an advance granted for agricultural purpose,
and
Any amount to be received remains overdue for a period of more than 180 days in respect of
other accounts.
With a view to moving towards international best practices and to ensure greater
transparency, it has been decided to adopt the 90 days overdue norm for identification of
NPAs from the year ending march 31,2009 were:
Interest and /or installment of principal remain overdue for a period of more than 90 days in
respect of a term.
The accounts remains out of order for a period of more than 90 days, in respect of an
discounted.
Interest and/or installment of principal remains overdue for two harvest seasons but for a
period not exceeding two half years in the case of an advance granted for agricultural
purpose, and
In case of non-agricultural loans interest and /or installment of principal remain overdue for
more than 90 days.
Any amount to be received remains overdue for a period of more than 90 days in respect of
other accounts.
DOUBTFUL ASSETS
Doubtful assets are those, which possess all the weakness of sub-standard assets in
addition to weakness that make collection or liquidation improbable.
According to the prudential norm, an asset is classified as doubtful if A doubtful asset is one, which has remained NPA for a period exceeding 18 months.
Erosion in value of security to the extent of more than 50% of value assessed by the bank or
accepted by RBI or existence of other facto such as frauds committed by borrower can be
classified by without waiting for the competition of 28 months as NPA under sub-standard
category.
Doubtful assets have been further classified as
DOUBTFUL CATEGORY I- those doubtful assets that last for a period from 3 to 4 years.
DOUBTFUL CATEGORY II-those doubtful assets that last for a period from 4 to 6 years
after the completion of doubtful category and before the doubtful III category.
DOUBTFUL CATEGORY III-those doubtful assets which continue as NPAs even after 6
years of being under doubtful I and doubtful II categories.
LOSS ASSETS
A loss asset is one, which is considered as uncollectible or irrevocable and has such
little chance of recovery that is continuance as an asset is not needed.
A loss asset is one, where loss has been identified by the bank or internal or external
auditor or by the co-operation department or by the RBI inspection but the amount has not
been written off wholly or partly.
If the realizable value of the security, as assessed by the bank is less than 10% of the
outstanding in the borrower accounts, the existence of the security should be ignored and the
assets should be classified as a loss asset. Such an asset can be classified as a loss asset even
without being categorized under sub-standard doubtful assets. It can be either written off or
fully provided by the banks.
For the purpose of application of income recognition norm, assets can be further sub
classified as
OTHER ACCOUNTS: RBI has specified that any other loan facility sanctioned by the
banks to their borrower, if any that remains overdue for a period of more than 90 days,
should also be treated as NPA.
CONSORTIUM ADVANCES
Each bank is required to classify the borrower accounts according to its own recovery,
i.e., on the record of recovery of the individual member banks.
The banks participating in the consortium to arrange to get their share of recovery
transferred from the lead bank of the consortium.
1. BASIC CONSIDERATION:
In simple terms the classification of assets should be done by considering the well
defined credit weaknesses & extent of dependence on collateral security for realization of
dues.
In accounts where there is a potential threat to recovery on account and existence of
other factor such as fraud committed by borrower it will not be prudent for bank to classify
that account first as sub-standard and then as doubtful. Such account should be straight away
classified as doubtful asset or loss asset, as appropriate, irrespective of the period for which it
has remained as NPA.
2.
term have been re-negotiated unless the package of re-negotiated terms has worked
satisfactory for a period of one year.
A similar relaxation is also made in respect of SSI units which are identified as sick
by banks themselves and where rehabilitation packages programs have been drawn by the
banks themselves or under consortium arrangements.
3.
or postpone the identification of NPAs, especially in respect of high value accounts. The
banks may fix a minimum cut-off point to decide what would constitute a high value account
depending upon their respective business levels. The cut-off point should be valid for the
entire accounting year.
Responsibility and validation level for proper assets classification may be fixed by bank.
The system should ensure that doubts in asset classification due to any reason are
settled through specified internal channels within one month from the date on which the
account would have been classified as NPA as per extant guidelines.
AMOUNT
xxx
xxx
xxx
xxx
xxx
xxx
PERFORMING ASSETS
Less: Provision/Sundry Suspense
NET NON-PERFORMING ASSETS
xxx
xxx
b. Net Non-Performing Assets indicate the degree of risk in the credit portfolio of banks. Net
nonperforming assets are arrived at by reducing provisions and suspense accounts (if any)
from gross Non-Performing Assets. High level of net NPAs indicates high quantity of risky
assets for which no provision has been made.
In light of the comparisons done in the report more emphasis has been given to gross
NPA levels as compared the Net NPAs as Gross NPAs do not high levels of provisioning and
are a better indicator of the extent of problem loans. Net NPAs on the other hand are a better
indicator of the overall financial soundless of the bank with respect to its NPAs.
LOK ADALATS:
For recovery of smaller loans, the Lok Adalat has proved a very good agency for
quick justice and settlement of dues. The Gujarat state legal service authority and the DRT,
Ahmadabad have nominated and appointed conciliator to deal with the cases before the Lok
Adalat comprising of retired high court judge and two member from senior advocates/
industrialists/executives of the banks. This Adalats In the state of Gujarat has been found to
be useful as supplement to the efforts of the recovery by the DRTs. Such agencies should be
established in all the states.
3.
NPAs of the bank to suck an agency and to developing the process if securitization of banks
loan assets for providing liquidity. Perhaps secondary market of derivatives based on
securitized assets could also be developed as in individual countries.
The economy
The loans for the weaker section of the society and the waiving of the loans to farmer are
another dimension of the politicization of bank lending.
Most of the depositors money has been frittered by the banks at the instance of politicians,
whale the same depositor are being made to pay through taxes to cover the losses of the bank.
approval of their boards. This is balancing measure. It imposes a self disciplined on the
part of the banks, which will only indirectly prevent accounts turning into NPAs on
account of the banks own failures or wrong actions.
8. Risk assessment and risk management: since the year 1998, the RBI has been making
serious efforts towards evolving a suitable and comprehensive model for risk
management by the banks and to integrate this new discipline in the working systems of
banks. The BBI has identified risk-prone areas in asset- liability management, credit
management, changes in market conditions and counter-party and country risks and has
evolved suitable models for managing all such risks. RBI has also evolved system of
risk-based supervision of banks. It also advised banks on parallel schemes for carrying
out internal audit based on risk perception.
9. E-banking VRS: the influence if these areas of banking reforms may not appear directly
relevant to reduction of NPAs. However, computerization provides for data-accuracy and
operation efficiency and results in a better management information system (MIS). VRS
rationalizes the work force, which in turn results in better productivity and operational
efficiency.
10. RBI has also cautioned banks on the use of gains from the sale of investment: It has
advised banks to follow a more prudent policy for utilizing the gains realized on sale of
securities arising from a decline in interest rates and also for building up adequate
reserves to guard against any possible reveal of the interest rates environment due to
unexpected developments. Accordingly, Banks are required to build an Investment
Fluctuations Reserve (IFR) of a minimum of 5% of all investment in the held for
trading and available for sale categories within 5 years.
11. Circulation of information on defaulter: the RBI has put in place a system for periodic
circulation of details of willful defaults of borrower of banks and financial institutions.
This serves as a cautionary list while considering request for new or additional credit
limits form defaulting borrowing units and also from the director/ proprietor/ partner of
these entities. The RBI also publishes a list of borrower (with aggregate outstanding of
`1crore and above) against whom banks and FIs have filed suits for recovery of their
funds, as on 31 march every year. These measures serve as negative basket of steps
shutting off fresh loans to these defaulters.
12. Recovery actions against large NPAs : RBI advised public sector banks to examine all
cases of willful defaults of `1crore and above file suits in such cases, and file criminal
cases in regard to willful defaults are required to review NPA accounts of .1crore and
above with special reference of staff accountability.
13. Special mention accounts: in a recent circular, RBI has suggested to the banks to have a
new asset category or special mention accounts for early identification of bad debts.
This would be strictly for internal monitoring loans and advances overdue for less than
one quarter and two quarter would come under this category. Data regarding such
accounts will have to be submitted by the banks to the RBI. However, special mention
assets would not require provisioning, as they are not classified as NPAs. An asset may be
transferred to this category once the earliest science of sickness/ irregularities are
identified. This will help banks look at account with potential problems in focused
manner right from the onset of the problem, so that monitoring and remedial actions can
be more active. Once these accounts are categorized and reported, proper top
management attention would also be ensured. Borrower having genuine problems due to
temporary mismatch in funds flow or sudden requirements of additional funds may be
entertained at the branch level and for this purpose, a special limit to overcome such
contingencies may be built in to the sanctioned process itself.
MANAGEMENT OF NPA
It is very necessary for bank to keep the level of NPA as low as possible.
Because NPA is one kind of obstacle in the success of bank so, for that the management of
NPA in bank is necessary. And this management can be done by following way:
taken.
Position of overdue accounts is reviewed on a weekly basis to arrest slippage of fresh
account to NPA.
Half yearly balance confirmation certificates are obtained from the borrower
regularly.
A committee is constituted at Head Office, to review irregular accounts.
Due to lower credit risk and consequent higher Profitability, greater encouragement is
given to small borrower.
Recovery competition system is extended among the staff member. The recovering
highest amount is felicitated.
Adopting the system of market intelligence for deciding the credibility of the
borrower
RECOVERY OF NPA
IMPORTANCE OF RECOVERY:
I.
II.
III.
IV.
CHAPTER 2
COMPANY PROFILE
SBI- STATE BANK OF INDIA
COMPANY OVERVIEW
STATE BANK OF INDIA
Type
Public
Traded as
NSE: SBIN
BSE: 500112
LSE: SBID
BSE SENSEX Constituent
Founded
27 January 1921
As Imperial Bank of India
2 June 1956 , Nationalization , 1 July 1955[1]
Worldwide
Key people
Arundhati Bhattacharya
(Chairperson)
Products
Revenue
Profit
Total assets
Total equity
Owner
Government of India
Number of
222,033 (2014)
employees
Slogan
Website
www.sbi.co.in
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 modernize 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.
clients) by the indigenous bankers had not spread as a general habit in most parts of India.
But, for a long time, and especially up to
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.
Associate banks
The State Bank of India and all its associate banks are identified by the same
blue keyhole logo. The State Bank of India wordmark usually has one standard typeface, but
also utilises other typefaces.
My SBI.
My Customer first.
MISSION
We will create products and services that help our customers achieve
their goals.
We will go beyond the call of duty to make our customers feel valued.
VALUES
1. Funds Transfer
You can now avail a bouquet of funds transfer services through Internet banking
Bank Group
Pay any VISA credit card bill
Transfer funds to religious and Charitable institutions
Record standing instructions to transfer a fixed amount at a scheduled frequency for
The above mentioned facilities are available to both Retail and Corporate Internet
Banking users of SBI (provided they have availed transaction rights).
E DEPOSITS
1. E-TDR/e-STDR
As a general rule the minimum tenure for a term deposit is 7 days and the maximum is 10
years. However Both TDR and STDR are bound by the following minimum and maximum
tenures.
Minimum
tenure
is 7
days for
TDR
and
180 days for STDR and Maximum tenure is 3650 days for TDR and STDR.
Unlike Recurring Deposit account, SBI Flexi Deposit offers flexibility in choosing the
deposit amount within the minimum and maximum limits per financial year. he Minimum
deposit amount is Rs. 5,000/- per Financial Year. Higher amounts in multiples of Rs. 500/may be deposited with minimum of Rs. 500/- at any one instance. Deposits can be made
anytime during a month and any number of times. The Maximum deposit amount is
Rs.50,000/- in a Financial Year.
4. E-Annuity Deposit Scheme
Under this scheme, a lump sum amount is deposited by a customer which is repaid to the
customer over a period in equated monthly installment which comprises part of principle
amount and interest on the reducing principle amount as well. Using the scheme customer
can have fixed monthly amount against his one time deposit. Payment will start on
anniversary date of the month. If date is non-existent (29th, 30th and 31st), it will be paid
on 1st day of next month.
5. E- Recurring Deposits
The period of deposit shall be minimum 12 months and maximum 120 months.
Smart Cards
1. Gift Card
2. State Bank Virtual Card
3. Smart Pay-out Card
State Bank Collect
Bill Payments
Western Union Service
NPS Contribution
Power Jyoti Fee Collection (PUL)
Loan against Shares
NRI Services
Personal Banking
International Banking
Agriculture / Rural
Corporate Banking
SME
Government Business
Domestic Treasury
MAJOR COMPETITORS
Some of the major competitors for SBI in the banking sector are Axis
Bank, ICICI
Bank, HDFC
Bank, Punjab
National
Bank, Bank
of
Baroda, IndusInd Bank, Canara Bank, Bank of India and Union Bank of
India. However in terms of average market share, SBI is by far the largest
player in the market.
MARKET SHARE
As on 31 March 2014, Government of India held around 58.59% equity shares in SBI. Life
Insurance Corporation of India is the largest non-promoter shareholder in the company with
14.99% shareholding.
Shareholders
Shareholding
58.60%
16.79%
FIIs/GDRs/OCBs/NRIs
12.04%
03.78%
02.87%
Others
5.92%
Total
100.0%
The equity shares of SBI are listed on the Bombay Stock Exchange, where it is a constituent
of the BSE SENSEX index, and the National Stock Exchange of India, where it is a
constituent of the CNX Nifty. Its Global Depository Receipts (GDRs) are listed on
the London Stock Exchange.
AWARDS RECEIVED
SBI was ranked 73rd largest bank in the world, according to 2014 SNL financial
data.
SBI won the Best Bank award in the 'ASIAMONEY FX POLL OF POLLS 2014 for
best overall performance as domestic provider of Forex services over the last 10
years.
SBI was ranked as the top bank in India based on tier 1 capital by The
Banker magazine in a 2014 ranking.
SBI was ranked 298th in the Fortune Global 500 rankings of the world's biggest
corporations for the year 2012.
SBI won "Best Public Sector Bank" award in the D&B India's study on 'India's Top
Banks 2013'.
State Bank of India won three IDRBT Banking Technology Excellence Awards 2013
for Electronic Payment Systems, Best use of technology for Financial Inclusion,
and Customer Management & Business Intelligence in the large bank category.
SBI won National Award for its performance in the implementation of Prime
Ministers Employment Generation Programme (PMEGP) scheme for the year 2012.
Best Online Banking Award, Best Customer Initiative Award & Best Risk
Management Award (Runner Up) by IBA Banking Technology Awards 2010.
SKOCH Award 2010 for Virtual corporation Category for its e-payment solution
SBI 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.
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.
SBI was named the 29th most reputed company in the world according
to Forbes 2009 rankings.
Most Preferred Bank & Most preferred Home loan provider by CNBC
SBI was 50th Most Trusted brand in India as per the Brand Trust Report 2013, an
annual study conducted by Trust Research Advisory, a brand analytics company and
subsequently, in the Brand Trust Report 2014, SBI finished as India's 19th Most
Trusted Brand in India.
members
are
encouraged
to
make
their
contribution
by
SWOT ASSESSMENT
SWOT Analysis
Strength
1.
2.
3.
4.
Weakness
Opportunity
1. Pool in talent to replace the going top management to serve the next
generation
Threats
ICICI
HDFC