BANKING SYSTEM IN INDIA

Introduction:
This chapter provides insight into banking system in two parts. Part-A covers:
concept, meaning and definition of Bank, history and growth of banking
system in India, role of banking system in economic development of India,
Types of Banks, Functions of commercial banks. Part-B includes information
on historical perspective of State Bank of India, and its associate banks, nonbanking subsidiaries and joint ventures, Schemes (Deposits Vs Loans).
Bank Concept:
Gulati (2011) defined the concept of Bank in her book Banking and Insurance
Principal and Practices published by Excel book, New Delhi
Bank is a financial institution which receives deposits from the public and
provide loan from needy people. At the time of globalization, banks are not
only involved in its normal activities but they also perform Para Banking
Activities such as Insurance, Mutual Fund Business and Investment in Stock
Exchanges etc.1
In absence of banking in India the money lenders and individuals were
handling all financial activities and individuals need to pay high rate of
interest. In earlier time there were no security of public deposits and no
equality regarding loans. For avoiding such problems the organized banking
sector was established, which was fully coordinated by the government.
1

Gulati (2011) defined the concept Bank in her book Banking and Insurance Principal and Practices published by Excel book, New

Delhi

The different types of functions to the bank explain their need and importance:
Bank provide the security to the deposits of customers.
Bank control the supply of money and credit.
To avoid the powers of money lenders and individuals etc.
Bank is a financial institution and finance is the life blood of trade, commerce
and industries. It is a back bone of a modern business and plays an important
role for development of a country.
Meaning of Bank:
The word bank is derived from old Italian word banca or from a French word
banque both means a bench or money exchange table. In olden days, European
money lenders or money changers used to display coins of different countries
in big quantity on benches or tables for the purpose of lending or exchanging.2
All know, people earn money and that money helps to meet their daily
expenses. They also need money for future expenses. In future some are heavy
expenses. These expenses can be easily shortout if some money is saved out of
the present income. In this purpose savings are available for use whenever
needed but its involved the high risk like lost by theft, robbery etc. so, people
wanted a place where money could be saved safely and also available when it
required. Banks are such place where people can deposits their saving and
whenever they required they can easily withdraw money form their saving.3
2

(http://kalyan-city.blogspot.com/2011/02/what-is-bank-introduction-definition.html )

(https://online.vmou.ac.in/oldweb/studymaterial/BBA%2010.pdf, 2014)

Definitions of Bank :
The term Bank has been defined in different ways by different economists
(Somashekar, 2009). A few definitions are cited by him as follows;

According to Walter Leaf A bank is a person or corporation which holds itself

out to receive from the public, deposits payable on demand by cheque. Horace
White has defined a bank, as a manufacture of credit and a machine for
facilitating exchange.
According to Prof. Kinley, A bank is an establishment which makes to
individuals such advances of money as may be required and safely made, and
to which individuals entrust money when it required by them for use.
The Banking Companies Act (1949) of India defines Bank as A financial
institution which accepts money from the public for the purpose of lending or
investment repayable on demand or otherwise withdrawal by cheque, drafts or
order or otherwise.4
The Oxford dictionary of finance and banking (2008) 5 defines a bank as an
establishment for custody of money received from or on behalf of its
customers. Its essential duty is to pay their drafts on it. Its profits arise from the
use of the money left employed by them.
The Websters Dictionary Defines a bank as an institution which trades in
money, establishment for the deposit, custody and issue of money, as also for
making loans and discounts and facilitating the transmission of remittances
from one place to another.6

(www.newagepublishers.com/samplechapte.001636.pdf, 2014)

Law, J and Smullen, J. (2008). A Dictionary of Finance and Banking. 4th edition, Oxford Press.

(https://online.vmou.ac.in/oldweb/studymaterial/BBA%2010.pdf, 2014)

Rajesh Goyal In simple words, we can say that Bank is a financial institution
that undertakes the banking activity ie.it accepts deposits and then lends the
same to earn certain profit.7
An establishment authorized by a government to accept deposits, pay interest,
clear checks, make loans, act as an intermediary in financial transactions, and
provide other financial services to its customers.8
Banking History and Growth of banking system in India :
The structure of banking is different from country to country. In the economic
development of any country banking system plays an important role. 9
In order to understand present frame of banking sector in India and its past
progress, it will be fitness of things to look at its development in a somewhat
longer historical perspective. The growth of banking system in India is divided
into two major parts that are Pre independence and Post Independence. Post
Independence part is also divided into three parts that are Pre Nationalization,
Post Nationalization and Liberalization Era.
Evolution of Indian Banking

Pre Independence

Post Independence

(1786-1947)

(1947 to till date)

7
8
9

(http://www.allbankingsolutions.com/banking-tutor/what-is-banking.shtml, 2014)
(http://www.businessdictionary.com/definition/bank.html#ixzz3SlgODmyX, 2014)
(https://online.vmou.ac.in/oldweb/studymaterial/BBA%2010.pdf, 2014)

Pre Nationalization
(1947-1969)

Post Nationalization
(1969-1991)

Liberalization Era
(1991 onwards)

In 1786, the first bank in India was established. From then till today, the
growth of commercial banking in India can be classified under the following
two phase.
1. Pre Independence (1786-1947)
2. Post Independence (1947 to till date)
Post Independence can discuss under the phase.
Pre Nationalization (1947-1969)
Post Nationalization (1969-1991)
Liberalization Era (1991 onwards)
Pre Independence (1786-1947) :In India the first bank, The General Bank of India was setup in 1786 followed
by The Bank of Hindustan and Bengal Bank. Further as an independent units
Bank of Bengal (1809), Bank of Bombay (1840) and Bank of Madras (1843)
was established by The East India Company. These were called Presidency
Bank. In 1920 these banks were merged and a new bank was formed named
The Imperial Bank of India. Which was run by European shareholders as a
private bank.
It was for the first time in 1865 The Allahabad Bank was established,
exclusively by Indians. In 1894, Punjab National Bank Ltd was established.
Further Bank of India, Central Bank of India, Bank of Baroda, Canara Bank,

Indian Bank and Bank of Mysore were established from 1906 to 1923. In 1935,
The Reserve Bank of India was established.
During the pre independence phase that is between 1923 to 1947 there were
frequently failures there was a very slow growth as a reason they were only
1100 bank all over the country which were small. As per the Reserve Bank
India Act of 1934, the Reserve Bank of India (RBI) was constituted as an apex
bank. As per the Reserve Bank India Act of 1934, the Reserve Bank of India
(RBI) was constituted as an apex bank.

To streamline the functioning and activities of commercial banks, the

Government of India came up the Banking Companies Act, 1949 which was
later changed to Banking Regulation Act, 1949. As per the Banking Regulation
(Amendment) Act of 1965 (Act No. 23 of 1965), RBI was vested with
extensive powers for the supervision of banking in Indian as the Central
Banking Authority. During those days, the public confidence in banks was
somewhat low and, so, deposit mobilization was slow. Abreast of it the savings
banks facility provided by the postal department was comparatively safer.
Moreover, funds were largely given to traders.

Post Independence (1947 to till date):-Post independence phase was distributed

under three phases.
Pre Nationalization (1947-1969)
Till 1947, The formation of Indian banking system was not in satisfactory
position. The Banking Regulation Act. 1949 provided the required structure

for proper management under RBI. RBI was represented as nominee and
Boards of directors was a Government of India of PSB. This period merged a
small banks and growth the larger banks. In 1955, The SBI was nationalized
under the guidance of RBI.
In 1968, seven associate banks of SBI were also nationalized because of the
effort of the Prime Minister Mrs. Indira Gandhi.
GROWTH OF BANKING IN INDIA
1951-1969

S.NO

YEA

SBI AND ITS SCHEDULED

NON-

ASSOCIATES COMMERCIA

SCHEDULED

L BANK
1
1951 643
2004
2
1961 1436
2954
3
1969 3379
5104
Post Nationalization (1969-1990)

TOTAL

COMMERCIA
L BANK
1504
622
207

4151
5012
8690

The main motto of First banking Revolution was to send banking services to
the common people. In 19th July, 1969, 14 Major Commercial Banks were also
nationalized. The following Banks were nationalized :-

1. Central Bank of India

2. Bank of Maharashtra
3. Dena Bank
4. Punjab National Bank
5. Syndicate Bank
6. Canara Bank
7. Indian Bank
8. Indian Overseas Bank
9. Bank of Baroda
10. Union Bank
11. Allahabad Bank
12. United Bank of India
13. UCO Bank
14. Bank of India
In 15th April 1980, Six more Commercial Banks were nationalized and these
banks increased the number of nationalized banks from 14 to 20. These banks
were :1.
2.
3.
4.
5.
6.

The Andhra Bank

The Corporation Bank
The New Bank of India
The Punjab and Sind Bank
The Oriental Bank of Commerce
The Vijaya Bank
Branch Expansion Since 1969 to 1991
YEAR

TOTAL NO. OF RURAL

SEMI

BRANCHES

BRANCHES

BRABCHES

URBAN

1969
8262
1833
1980
32419
15105
1991
60220
35206
SOURCE: RBI(1998) : Banking Statistics, 1992.95

3342
8122
11344

Because of this step 80 percent of the banking sector was controlled by

government. The Government if India has taken the following steps to regulate
banking institutions in the country:
1955: Nationalization of State Bank of India
1961: Insurance cover extended to deposits
1968: Nationalization of SBI subsidiaries
1969: Nationalization of 14 major banks
1971: Creation of Credit Guarantee Corporation
1975: Creation of regional rural banks
1980: Nationalization of seven more banks with deposits over Rs. 200 crore.
Liberalization Era (1990 onwards)

The Liberalization phase of development of Indian banking introduced many

more products and facilities in the banking sector in its reform measures. In
1991, under the chairmanship of M. Narsimham, a committee was set up under
his name, which worked for the liberalization of banking practices. The
country in flooded with foreign banks and their ATM stations. Efforts are being
put in to give a satisfactory service to customers. Phone banking and net
banking have been introduced. The entire system has become more convenient
and swift. Today, time is given more importance than money.

The financial system of India has shown a great deal of resilience. It is

sheltered from any crisis triggered by any external macroeconomic shock as
other East Asian countries suffered. This is all due to a flexible exchange rate
regime, high foreign reserves, the not yet fully convertible capital account, and
limited foreign exchange exposure to banks the their customers.

Role of banks to development in India

There are some important functions to development banks in India are as
follows:
1. To promote and develop small-scale industries (SSI) in India.
2. To finance the development of the housing sector in India.
3. To facilitate the development of large-scale industries (LSI) in India.
4. To help the development of agricultural sector and rural India.
5. To enhance the foreign trade of India.
6. To help to review (cure) sick industrial units.
7. To encourage the development of Indian entrepreneurs.
8. To promote economic activities in backward regions of the country.
9. To contribute in the growth of capital markets.
Now let's discuss each important function of development banks one by one.
1. Small Scale Industries (SSI)

For the improvement of the small-scale sector, banks act an important role. In
April 1990, Small Industries Development Bank of India(SIDBI) which was
established by Government of India(GOI). It Provide medium and short-term
loans to Small-Scale Industries. Small Industries Development Bank of India
(SIDBI) main functions are
Provide loan to small scale industries.
To Promote the services of small scale industries.
2. Development of Housing Sector
On 9th July1988, Government of India (GOI) was started The National Housing
Bank (NHB) under the act of the National Housing Bank Act, 1987. Its main
motto was to development of the housing sector.
3. Large Scale Industries (LSI)
In 1964, Industrial Development Bank of India (IDBI) was established. Its
working as a subsidiary of the RBI. IDBI main function was to provide
medium and long term loan to LSI. This bank gives a lot of services like
merchant banking, corporate advisory services, foreign exchange services etc.
4. Agriculture and Rural Development
In 1982, Agriculture Credit Department and Agriculture \Refinance and
development Corporation was amalgamated and form a new unit National
Bank for Agriculture & Rural Development (NABARD). It promotes the
agriculture sector and also help to developed the rural. All financial institutions
that provide credit to agriculture and rural development coordinate by
NABARD.

5. Enhance Foreign Trade

In January 1982, The Export-Import Bank of India (EXIM) was established.
Mumbai was the headquarter of EXIM. Its main object was to promote
foreign trade services in term of import and export.
6.Review of Sick Units
Industrial investment Bank of India (IIBI) has been started by Government of
India (GOI) to help sick units. The main object is help to restart sickunits. IIBI providing loan of sick units for modernization, restructuring
and diversification.

7. Entrepreneurship Development
Bank such as NABARD, State Industrial Development Banks and State
Finance Corporations give guidance to entrepreneurs for developing leadership
and business management skills. For the benefit of entrepreneurs they conduct
seminars and workshops also.

8. Regional Development
For the development of rural and local areas banks help to avail a loan facility.
Banks provide loan to start their work for the companies in rural areas. They
also provide loan for project management.

9. Contribution to Capital Markets

Sometimes capital formation and economic growth of the country is depend on

the capital market. For this purpose banks help to develop the capital market.
They in garage people to invest in equity shares and debentures of various
listed companies in India. 10
Type of Banks
www.newagepublishers.com/samplechapte.001636.pdf
There are different types of bank is working in India. Mainly they are
distributed in two parts.
Central Bank
Commercial Banks
Commercial bank is also classified into different parts such as deposit banks,
industrial banks, savings banks, agricultural banks, exchange banks, and
miscellaneous banks.

Types of Banks
10

(http://kalyan-city.blogspot.com/2012/04/what-are-functions-of-developmentbanks.html, 2014)

Central Bank

Deposit Banks

Commercial Banks

Savings Banks

Industrial Banks

Exchange Banks

Agricultural Banks

Miscellaneous

Banks

https://online.vmou.ac.in/oldweb/studymaterial/BBA%2010.pdf
1. Central Bank :Central Bank is also called The bankers bank. The main function of this bank
is to control the credit and the monopoly of issuing currency on behalf of the
government. In India The Reserve Bank of India is a central bank.

In the words of De Kock, "The privilege of note-issue was almost everywhere

associated with the origin and development of central banks."

2.Commercial Banks :-

A commercial bank is a bank that operates for profit. The main function of this
bank is to acceptance of deposits, Provide loans etc.
www.newagepublishers.com/samplechapte.001636.pdf
a. Deposit Banks:
Deposit Bank is the main part of commercial bank. People which belong
from business class have connected with deposit banks. Main function of
this bank is accept money as a form of deposits from general public and
provide as a form of loan to needy people.
b. Industrial Banks:
Industrial banks are those bank which help those industrialists who want
loan for a long period to run their industries. As well as the bank
purchase shares and debentures from companies, and allow them to have
fixed capital.
After the independence, so many industrial banks were working in India.
These are The Industrial Finance Corporation (I.F.C.), The State Financial
Corporations (S.F.C.), Industrial Credit and Investment Corporation of
India (ICICI) and Industrial Development Bank of India (IDBI) etc.
c. Savings Banks:
Saving banks are those banks which motivate people to save their money
for future expenses. Mainly the poor and middle class people to
encourage for saving. After nationalization most of the nationalized
banks accept the saving deposits.
d. Agricultural Banks:
Agriculture occupation is the main function in India. Those bank provide
loan for agriculture purpose called agriculture banks. These banks are
controlled by cooperative societies. These banks provide loan in term of

short term, medium term and long term. In India mainly two types of
agriculture banks are working:
(a) Agricultural Co-operative Banks, and
(b) Land Mortgage Banks.
Short term loan is mainly provided by Co-operative Banks and long term
loan is provided by Land Mortgage Banks.

e. Exchange Banks:
Exchange bank plays an important role for the development of foreign
trade of the country. January 1st 1982, The Export-Import Bank of India
(EXIM Bank) was established. They provide loan for foreign trade. The
main function of these banks are to discount, accept and collect foreign
bills of exchange. These banks promote the import and export of the
country.

f. Miscellaneous Banks:
There are certain kinds of banks which have arisen in due course to meet
the specialised needs of the people. In England and America, there are
investment banks whose object is to control the distribution of capital
into several uses. American Trade Unions have got labour banks, where
the savings of the labourers are pooled together. In London, there are the
London Discount House whose business is to go about the city seeking

for bills to discount. There are numerous types of different banks in the
world, carrying on one or the other banking business.
FUNCTIONS OF COMMERCIAL BANKS
For the development of a country banks play an important role. Before the pre
nationalization

bank have to perform only deposits of money but after

nationalized they perform a variety of functions which helps to developed and

developing countries. That function can be divided into two types :
A. Primary Functions
B. Secondary Functions

Primary Functions:Primary functions are also classified under these function :

1. Acceptance of deposits
2. Advancing loans
Acceptance of deposits:
Accepting deposits is the first main basic function of a commercial bank. Bank
receives deposits from public in form of saving and lend them to needy person
for a short period. Bank accept money from people in three ways:
(a) Current Deposits
(b) Savings Deposits
(c) Fixed Deposits.

Current Deposits:

Current deposit is also called demand deposits. These deposits are

generally used by businessmen and industrialists. Current Account never
used for the purpose of investment or savings. No interest is paid by banks
on these accounts. Most of the current account are opened in the names of
firm / company accounts. There are no limits for number of transactions in
a day.
Savings Deposits:
Those people wants to save their money for a short period they used saving
deposits. Interest is paid by banks on these accounts. Generally the account
is opened by individuals. Till 24th October 2011, the interest on Saving
Deposits was regulated by RBI but from 25th October 2011 banks are free
to decide the same within certain conditions imposed by RBI.
Fixed Deposits:
Fixed Deposits is also called time deposits or Bond. The term "fixed"
is denotes the period of maturity. The period of maturity is from 7 days to
10 years. Interest is paid by banks on these accounts are higher than saving
accounts.
Advancing Loans:
Advance loan is second main basic function of a commercial bank. Banks
provide loan for all types of person specially businessmen and
entrepreneurs.
This types of loan is avail for a short period. Generally this types of loans
are made against security. There are many way of lending is by :

(a) Overdraft Facilities

(b) Cash Credit
(c) Discounting Bills of Exchange
(d) Money at Call
(e) Term Loans
(f) Consumer Credit
(a) Overdraft Facilities:Those customer is having a good standing can avail a overdraft facility.
Generally the businessmen used this type of loan facility. The limit of
overdraft is varies from customer to customer depending on his financial
position. Banks charge interest on overdraft amount.
(b) Cash Credit :According to the agreement bank provide cash credit facility to the
borrowers who is having a certain security. But the full amount of loan is
not given in a particular time, instead of this bank provide facility to
their customer that they can withdraw the amount whenever they want.
Bank charge interest only on the amount of credit availed to the
customer.
(c) Discounting Bills of Exchange:Now a days this type of lending is very popular in the market by modern
banks. When the person need of money and he is the holder of bill can
get it discounted from bank. Bank purchase a this type of bill from the
holder and pays the amount of the bill after deducting his commission.

After the maturity of the bills, the banks get back its full value from the
party which had accepted the bill. These bills are safe and secured bills.
(d) Money at Call:Money at call means loan grant by banks for a very short period not
Exceeding 7 days. Generally the dealers and brokers from stock
exchange markets avail this types of facility.
(e) Term Loans:Traders and industrialists avail a facility of term loan and now a days
agriculturists also avail a facility of term loan against some collateral
securities. Term loan is called so-called because the period of lending is
different from person to person and the maturity period is between 1 to
10 years.
(f) Consumer Credit:Banks also finance to purchases a household items like television sets,
refrigerators, Air condition, etc. this types of credit is called consumer
credit. This types of loan is made in a lump sum and repayment in
installments in a short period.

Secondary Functions
Secondary functions are also classified under these function :
1. Agency Services
2. General Utility Services

Agency Services:
Banks also provide some agency services to his customers.

The agency

services are play an important role in business world. There are lots of agency
services are provide by banks for and on behalf of their customer are as
follows:
(a) Collection and Payment of Credit Instruments: Banks collect and pay
various credit instruments like cheques, bills of exchange, promissory
notes etc., on behalf of their customers.
(b) Purchase and Sale of Securities: Banks purchase and sell various securities
like shares, stocks, bonds, debentures on behalf of their customers.
(c) Collection of Dividends on Shares: Banks collect dividends and interest on
shares and debentures of their customers and credit them to their
accounts.
(d) Acts as Correspondent: Sometimes banks act as representative and
correspondents of their customers. They get passports, travellers
tickets and even secure air and sea passages for their customers.
(e) Income-tax Consultancy: Banks may also employ income tax experts to
prepare income tax returns for their customers and to help them to get
refund of income tax.
(f) Execution of Standing Orders: Banks execute the standing instructions of
their customers for making various periodic payments. They pay

subscriptions, rents, insurance premia etc., on behalf of their

customers.
(g) Acts as Trustee and Executor: Banks preserve the Wills of their customers
and execute them after their death.
3. General Utility Services:Banks also provide some other utility services for his customers are as follow:
a) Locker Facility:
As a security point of view bank gives a locker facility to their
customers. The customers can keep their valuable things like gold
ornaments, silver ornaments and important documents such as shares,
debentures and registries in this lockers.
(b) Travellers Cheques and Credit Cards:
Now a days it is very risky to carry cash with them during the travels. So
banks provide travellers cheques and credit card facility to their customer.
Because of this facility customers travel without any fear.
(c ) Letter of Credit:The banks are issued letters of credit to their customers certifying their credit
limit. In foreign trade this letter play an important role.
(d) Collection of Statistics:

Banks are collecting a lots of statistical data from trade, commerce,

industries, money and banking sector. Because of this data bank publish
valuable journals and bulletins.
(e) Underwriting Securities:
Banks underwrite the shares and debentures issued by the Government,
public or private companies.
(f) Accepting Bills of Exchange on Behalf of Customers:
Sometimes, on behalf of their customers banks accept bills of exchange,
internal as well as foreign. Through this customers to import goods.
(g) Merchant Banking:
To provide merchant banking services some of the commercial banks
have opened merchant banking divisions.
Historical prospective of State Bank of India :www.sbi.co.in , www.wikipedia.com, economictimes.indiatimes.com ...
Stock Quotes State Bank of India

On 2nd June 1806, The foundation day of State Bank of India goes back to the
the first decade of 19th century, when the Bank of Calcutta was established.
On 2nd January 1809, the bank received its charter from the imperial
government and was re-named as the Bank of Bengal. As a Joint stock
company there were three Presidency banks were incorporated. These
presidency banks were The Bank of Bombay (incorporated on 15 April 1840)

and the Bank of Madras (incorporated on 1 July 1843) followed the Bank of
Bengal. In 1861, according to paper currency act, these banks were received
the special right to issue paper currency. The right they retained until the
formation of the Reserve Bank of India. On 27th January 1921 these presidency
banks were merged as a Imperial Bank of India. The Imperial Bank of India
continue a joint stock company but without government participation.
According to the State Bank of India act 1955, the Reserve Bank of India
acquired a controlling interest in the Imperial Bank of India. The Imperial
Bank of India became the State Bank of India on 30th April 1955.
The government passed the State Bank of India (Subsidiary Banks) Act in 1959
which made eight state banks associates of SBI.
1.
2.
3.
4.
5.
6.
7.

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 (SBI)

In 1969, SBI acquired the first bank was the Bank of Behar (established
in 1911) with its 28 branches. The next year in 1970 SBI acquired the
second bank was National Bank of Lahore (established in 1942) with its
24 branches. After five years in 1975 SBI acquired Krishnaram Baldeo
Bank (established in 1916).
On 13th September 2008 State Bank of Saurashtra merged with SBI and
on 26th August 2010 State Bank of Indore merged with SBI. After the

merger of state bank of saurashtra and state bank of indore the SBI has
five associates. These are :
1.

State Bank of Bikaner and Jaipur (SBBJ)

2.

State Bank of Hyderabad (SBH)

3.

State Bank of Mysore (SBM)

4.

State Bank of Patiala (SBP)

5.

State Bank of Travancore (SBT)

https://www.sbbjbank.com/About-Us/history.htm
State Bank of Bikaner and Jaipur (SBBJ) :
State Bank of Bikaner and Jaipur (SBBJ) is an associate bank of SBI. As on 30 th
September 2013 SBBJ had 1049 branches in all over India out of this 862
located in the state of Rajasthan.

In 1960, State bank of Jaipur (established in 1943) and State bank of Bikaner
(established in 1944) were incorporated as subsidiaries of State Bank of India.
On 1st January 1963 these banks were merged and State Bank of Bikaner and
Jaipur was came into existence. This bank was subsidiary of SBI under the
State Bank of India (Subsidiary Bank) Act, 1959.

SBI held 75% shares of SBBJ and remaining 25% shares for institutions and
general public. On 25th April 1966 bank took over the business of the Govind
Bank Pvt. Ltd, Mathura.

Three Regional Rural Banks were sponsored and established by SBBJ. These
banks were Marwar Gramin Bank (established in 1976), Sriganganagar
Kshetriya Gramin Bank (established in 1984) and Bikaner Kshetriya Gramin
bank (established in 1985). On 12th June 2006 these three banks were merged
and new bank was formed as a MGB Gramin Bank. On 25 th February 2013
MGB Gramin Bank(sponsored by SBBJ) and Thar Gramin Bank (Sponsored by
UCO Bank) were merged into a single Regional Rural Bank named 'Marudhara
Gramin Bank' (sponsored by SBBJ) with Head office at Jodhpur.

State Bank of Hyderabad (SBH)

http://www.sbhyd.com/about-us/banks-profile/

State Bank of Hyderabad was constituted as Hyderabad State Bank on

08.08.1941 under Hyderabad State Bank Act, 1941. The Bank started with the
unique distinction of being the central bank of the erstwhile State of
Hyderabad, covering present-day Telangana region of Andhra Pradesh,
Hyderabad Karnataka of Karnataka state and Marathwada of Maharashtra
state, to manage its currency Osmania Sikka and public debt apart from the
functions of commercial banking. The first branch of the bank was opened at
Gunfoundry, Hyderabad on 5th April, 1942.
In 1953, the Bank took over the assets and liabilities of the Hyderabad
Mercantile Bank Ltd. In the same year, the Bank started conducting

Government and Treasury business as agent of Reserve Bank of India. In 1956,

the Bank was taken over by Reserve Bank of India as its first subsidiary and its
name was changed from Hyderabad State Bank to State Bank of Hyderabad.
The Bank became a subsidiary of State Bank of India on the 1st October 1959
and is now the largest Associate Bank of State Bank of India.
All the branches of the Bank are totally networked under Core Banking
Solutions, offering a vide range of products to its customers. All the customers
of the Bank have access to the latest technologies like Internet Banking, ATMs
etc. The Bank has pan India presence and operates through more than 1600
Bank branches.
State Bank of Mysore (SBM) :
http://www.statebankofmysore.co.in/history.html
State Bank of Mysore is the subsidiary of SBI. In 1913, The State Bank of
Mysore was established as the Bank of Mysore Ltd. Under the encouragement
of then Maharaja of Mysore, Sri Krishnaraja Wodeyar IV. During 1953,
Reserve Bank of India appointed Mysore Bank as its agent. In March 1960,
according to State Bank of India (subsidiary Banks) Act 1959 it became a
subsidiary of the State Bank of India.

State Bank of Patiala (SBP)

http://en.wikipedia.org/wiki/State_Bank_of_Patiala
https://www.sbp.co.in/AboutUs.aspx

State Bank of Patiala is an associate bank of SBI. On 17th November 1917

Maharaja Bhupinder Singh, Maharaja of the Patiala state, founded the Patiala
State Bank. The main aimed for the established of SBP was to further growth
of agriculture, trade and industrial areas.
On 1st April 1960 Bank of Patiala became a subsidiary of SBI and was
renamed State Bank of Patiala. SBP had 1010 branches in all over India, but
most of the branches are situated in the Indian states of Punjab, Haryana,
Himachal Pradesh, Rajasthan, Madhya Pradesh, Jammu & Kashmir, Delhi and
Gujarat.
State Bank of Travancore (SBT):http://en.wikipedia.org/wiki/State_Bank_of_Travancore#History

State Bank of Travancore is an associate bank of SBI. In 1945 as the proposal

of

C. P. Ramaswami Iyer, then Divan of Travancore was established

Travancore bank Ltd. The bank no longer credited the role due to the violent
resentment against the dictatorial rule of Sir. C.P.Ramaswamy Iyer. The
Maharaja of Travancore as the founder of the bank now credits it. The
Travancore government put up only 25% of the capital, the bank perform its
general banking business followed by government treasury work and foreign
exchange business. In 1960, it became a subsidiary of SBI under the SBI
Subsidiary Banks Act, 1959, enacted by the Parliament of India
In 1959, The assets and liabilities of Indo-Mercantile Bank was acquired by
SBT. In 1961, SBT acquired Travancore Forward Bank (established in 1929),
Kottayam Orient Bank (established in 1926), and Bank of New India

(established in 1944) after the Reserve Bank of India put the banks under
moratorium. In 1963, Vasudeva Vilasam Bank (established in 1930) was
acquired by SBT. In 1964, SBT acquired Cochin Nayar Bank (established in
1929) and Latin Christian Bank (established in 1928), after the Reserve Bank
of India put the banks under moratorium. It also acquired Champakulam
Catholic Bank(established in 1929). In 1965, SBT acquired Bank of Alwaye
(established in 1942), and Chaldean Syrian Bank(established in 1918).
NON BANKING SUBSIDIARIES
https://www.sbi.co.in/portal/web/affiliates/non-banking-subsidiaries
The Bank has the following Non-Banking Subsidiaries in India:

SBI Capital Markets Ltd

SBI Funds Management Pvt Ltd

SBI Global Factors Ltd.

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

SBI DFHI Ltd

SBI General Insurance Company Limited

SBI Pension Funds Pvt Ltd (SBIPFPL)

SBI Capital Markets Ltd (SBICAP)

India's largest domestic Investment Bank is SBI Capital Markets Ltd., offering
the whole range of investment banking and corporate advisory services. These
services include Project Advisory and Loan Syndication, Structured Debt
Placement, Capital Markets, Mergers & Acquisitions, Private Equity and
Stressed Assets Resolution.
In August 1986, SBICAP was founded as a completely owned subsidiary and
the Investment Banking division of State Bank of India (SBI), the largest
commercial bank in India.
Our services range from venture capital advisory, project advisory, buy and
sell-side advisory, accessing financial markets to raise capital and even
restructuring advisory in their turn-around phases.
Its headquartered in Mumbai, SBICAP has offices in all the major business
hubs in India and has five subsidiaries

SBICAP Securities Ltd.

SBICAP Trustee Co. Ltd.

SBICAP (UK) Ltd.

SBICAP (Singapore) Ltd.

SBICAP Ventures Ltd

SBI Funds Management Pvt Ltd (SBI FUNDS)

SBI funds are a Joint Venture of SBI and AMUNDI (France), one of the
world's leading fund management companies. With 25 years of rich experience
in fund management, we at SBI Funds Management Pvt. Ltd. bring forward
our expertise by always delivering value to our investors. We have a strong and
proud family that traces back to the State Bank of India (SBI). SBI Funds
Management is one of the largest player in India advising various financial
institutions, pension funds, and local and international asset management
companies. SBI Funds deliver value and look after the trust of our huge family
of investors with 222points.
SBI DFHI Ltd (SBI DFHI)
We are Primary Dealers- an institution created by RBI to support the book
building process in Primary Auctions of Government securities and provide
necessary depth and liquidity to the Secondary market in Government
Securities.
In 2004, the two lending companies the domestic Money and Debt Markets
were merged and formed a new company SBI DFHI LTD. It is a State Bank of
India Group Company. The RBI promoted Discount & Finance House of India
(DFHI) and SBI Gilts Ltd, a subsidiary of India's largest commercial bank.
SBI Global Factors Ltd.
SBIGFL has established itself. The main object of SBIGFL are they act as a
market leader in international factoring providing value added services to its

clients. SBIGFL

is the only supplier of international factoring, domestic

factoring and forfeiting services under one roof in India.

SBIGFL is headquartered in Mumbai with six regional offices they are in New
Delhi, Bangalore, Chennai, Hyderabad, Ahmedabad and Kolkata. SBIGFL
aims to be the first export and import solution provider in India offering
professional quality services on an e-commerce platform.

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

SBI cards and payment services pvt. Ltd. is a joint venture of SBI Cards &
Payment Services Pvt. Ltd and GE Capital Business Processes Management
Services Pvt. Ltd. The first joint venture focuses on the marketing and
distribution of SBI Cards and the second one handles the technology and
processing needs of SBI Cards. There are different types of cards are available
for different types of customers. These are Premium cards, Travel and
Shopping cards, Classic cards, Exclusive co-branded cards as well as Corporate
cards.
SBI General Insurance Company Limited
SBI General Insurance Company Limited is a joint venture of the State Bank of
India and Insurance Australia Group (IAG). SBI has a 74% of the total capital
and remaining 26% is held by IAG. Mumbai is the headquarter of SBI General
Insurance Company.
State Bank is the largest banking sector in India along with its five associate
banks, it is the largest in the world.

Insurance Australia Group Limited (IAG) is an international general insurance

group, with operations in Australia, New Zealand, the United Kingdom and
Asia.
Different types of policies are available for the different types of customers.
These Policy offering of SBI General covers Motor, Health, Personal Accident
& Home Insurance for Individuals and Aviation, Fire, Marine, Package,
Construction & Engineering, Liability, Group Health, Group Personal Accident
& Miscellaneous Insurance for Businesses.
SBI Pension Funds Pvt Ltd (SBIPFPL)
SBI Pension Funds Pvt. Ltd. Is a subsidiary of SBI
SBIPFPL is one of the 3 Pension Fund Managers appointed by Pension Fund
Regulatory and Development Authority (PFRDA) in India to manage the
pension corpus of employees enrolled under the New Pension System for
Government Employees.
SBIPFPL has also been appointed as Pension Fund Manager along with others
Pension Fund Managersto manage the pension corpus under the National
Pension Scheme.
SBI Pension Funds Pvt. Ltd., as a subsidiary of SBI, inherits all the strengths of
SBI. Depositors have trusted SBI with their funds for over 200 years.
During the year the Company was adjudged "Pension Fund of the year" for
excellence in performance and customer service (to subscribers) at the Indian
Pension Fund Congress 2013. The Company was also the recipient of the
"SKOCH Renaissance Award 2013- Pension Category".

JOINT VENTURES
https://www.sbi.co.in/portal/web/affiliates/joint-ventures
The Bank has the following Joint Ventures in India:

SBI Life Insurance Company Ltd (SBI LIFE)

SBI General Insurance Company Limited

SBI-SG Global Securities Private Limited

1. SBI Life Insurance Company Ltd (SBI LIFE)

SBI Life Insurance is a joint venture of State Bank of India and BNP Paribas
Cardif. SBI held 74% of the total capital and BNP Paribas Cardif held the
remaining 26%. Its authorized capital of Rs. 2000 crores and a paid up capital
of Rs 1,000 crores.

BNP Paribas Cardif is the life and property & casualty insurance arm of BNP
Paribas, one of the strongest banks in the world. BNP Paribas Group, having
presence in more than 80 countries ranks highly in Retail Banking, Investment
Solutions and Corporate & Investment Banking. BNP Paribas Cardif is one of

the world leaders in creditor insurance and its life and non-life insurance units
have received an AA rating from Standard & Poor's.
SBI Life has a unique multi-distribution model encompassing vibrant
Bancassurance, Retail Agency, Institutional Alliance and Corporate Solutions
distribution channels.
SBI Life extensively leverages the State Bank Group relationship as a platform
for cross-selling insurance products along with its numerous banking product
packages such as housing loans and personal loans. SBI's access to over 100
million accounts across the country provides a vibrant base for insurance
penetration across every region and economic strata in the country, thus
ensuring true financial inclusion. Agency Channel, comprising of the most
productive force of over 80,000 Insurance Advisors, offers door to door
insurance solutions to customers
Awards and Recognition in FY 2013-14:
1. Most Trusted Private Life Insurance Brand 2013 by The Economic Times,
Brand

Equity

and

Nielsen

Survey

Most Trusted Brand identifies brand which posses the most special ingredient the Consumer's Trust.
2. Best Life Insurance Provider 2013 - Runner Up by Outlook Money
The Outlook Money Awards recognise excellence in Financial Services.
3. SBI Life won following awards at the Indian Insurance Awards 2013:
Under-served Market Penetration Award 2013 (Private Sector): SBI Life won

this award for being pro-active in terms of reaching out tocustomers in

relatively under-penetrated states and regions in India.
Claims Service Company of the Year Award 2013 (Private Sector):
SBI Life has demonstrated effective and speedy claims settlement
whilemaintaining high levels of client service, satisfaction and focus in
handling claims in FY 2012-13, setting up a benchmark for the industry to
SBI Life won Global Performance Excellence Award 2013 by Asia Pacific
Quality

Organisation

(APQO)

SBI Life has achieved a unique distinction by featuring amongst the nine
organisations from six Asian and Pacific Rim Countries to be recognisedas
exemplary companies of world class quality performance.
5.

Won

Digital

Inclusion

Skoch

Awards

2013

SBI Life received the award for the project - Enabling partners to collect
premium through Electronic Fund Transfer - Cash & Direct Debit. Theaward
recognises best practices in the fields of governance, finance, banking,
technology, corporate citizenship, economics and inclusive growth.
6. Won Communication Excellence Award 2013 at 4th CMO Asia Awards
Represented by 25 countries across Asia, CMO Asia Awards recognises
organisations for displaying leadership in strategic communicationcombined
with consistent innovation.
7. BFSI (Banking Financial Services and Insurance) 2014 Awards:
'The Most Admired Life Insurance Company in the Private Sector'

 'The Best Life Insurance Company in the Private Sector' The BFSI Award
recognises the best performances of various Banking, Finance and Insurance
Services. The award focuses on best of the bestpractices of the BFSI industry
based on the strategy, security, customer service and the future technology
challenges and innovations.
8.

SBI

Life

recognised

amongst

Top-50

Great

Places

to

Work

SBI Life was ranked 36th amongst Great Places to work in India. India's Best
Companies to Work for Study 2013, the largest study in the countryon
workplace culture, attracted participation from around 550 organisations
spanning across 22 industries.
9.

Awards
Dream

at

Company

Dream

Employer

the
To Work

Employer

of

Branding

the

Award

World
For

2014
Year

2014'

HRD
in

Private

2014'

for

Talent

Congress:
Insurance
Ranked

4th

Management

World HRD Congress is the largest rendezvous of HR Professionals from

across the world. It recognizes the organisations with best HR Practicesacross
the globe.
10. Won the "Training Provider of the Year" Award at Asia's Training &
Development

Excellence

Awards

2013

The award is conferred by World HRD Congress and endorsed by Asian

Confederation of Business
For more information, Please visit : www.sbilife.co.in

SBI General Insurance Company Limited

SBI General Insurance Company Limited is a joint venture between the State
Bank of India and Insurance Australia Group (IAG). SBI owns 74% of the total
capital and IAG the remaining 26%.
Insurance Australia Group (IAG) is a general insurance group with operations
in Australia, New Zealand and Asia. IAG's businesses underwrite approaching
A$10 billion of premium per annum and employ over 13,500 people.
IAG is an ASX top 30 company with a market capitalisation in excess of A$12
billion.

IAG has been assigned a 'Very Strong' Insurer Financial Strength Rating
of 'AA-' by Standard & Poor's for its key wholly owned insurance
companies.

IAG is ranked in the Dow Jones Sustainability Index.

SBI General closed the financial year 2013-14 (4th year of operation) with a
Gross Written Premium of Rs.1188Crores registering a growth of 54 %. During
the year 2013-14, SBI General in association with State Bank of India covered
over 1.54Crores Saving Bank Account holders of SBI with a Personal Accident
Insurance cover worth Rs.2/4 Lakhs. SBI General has also established its
presence in nearly 14,000 Branches of State Bank of India. SBI General
follows a robust multi-distribution model encompassing Bancassurance,
Agency, Broking& Retail Direct Channels. Today, SBI General's Distribution
family includes over 9,400 IRDA certified SBI & its Associate Bank
employees and over 3,200 Agents.

SBI General's current geographical coverage extends to 56 cities pan India and
plans to extend this reach to 107 offices by the end of the current financial year.
SBI General is currently serving three key customer segments i.e. Retail
Segment (catering to Individual & Families), Corporate Segment (catering mid
to large size Companies) and SME Segment. In a short span, SBI General has
emerged as one of the few General Insurance companies in India to have a
dedicated SME Team catering exclusively to the needs of SME Segment.
Current Policy offering of SBI General covers Motor, Health, Personal
Accident & Home Insurance for Individuals and Aviation, Fire, Marine,
Package, Construction & Engineering, Liability, Group Health, Group Personal
Accident & Miscellaneous Insurance for Businesses.
About Insurance Australia Group
Key Recognition:
For more information, Please visit http://www.sbigeneral.in

The company was awarded Technology Maturity General Insurance

Award for FY 13 organised by Fintelekt, a media group focused on
banking and insurance

Insurance Information Bureau (IIB), an independent body promoted by

IRDA announced Data quality results for FY 13. The company had
highest scores on Fire and Motor data in the industry.

Runners up in Data Quality Asia Pacific Award 2013 during Data

Congress held at Melbourne, Australia in March 2014 conducted by The
International Association for Information and Data Quality (IAIDQ), a

professional society of experts interested in promoting information and

data quality.

SBI-SG Global Securities Private Limited

. SBI-SG Global Securities Services Private Limited

SBI-SG Global Securities Services Pvt. Ltd (SBISGGSS), is a joint venture
between State Bank of India (SBI) and SocieteGenerale Securities Services
(SGSS). This Joint venture has been set up to offer high quality Custody
Services, Fund Accounting & Fund Administration, Risk Analysis &
Performance Measurement and Registrar & Transfer Agency Services to
domestic investors like Financial Institutions, Mutual Funds, Insurance
Companies, Pension Funds, Portfolio Management Services, Private Banks,
Corporates, Brokers and overseas investors like Global Custodians or Foreign
Institutional Investors in the Indian Securities Market.
The joint venture is leveraging SBIs strength in the Indian financial sector and
SGSS is contributing its recognized experience and best practices as one of the
leading global custodians providing securities services across 80 countries
world wide
It is a state-of-the art service delivery with total focus on rendering world class
service to all the major players in the Securities Industry in India
SBI-SG GSS is a provider of custody services and our services enable clients
to effectively manage the administration of their investments.
In the area of Custody and Clearing we offer highest standards in terms of
technology and processes, as well as a level of expertise, quality and

consistency that is unmatched. Additionally, the market knowledge and

relationships enabled by the wide spread presence of the promoters has placed
SBI-SG GSS in a position to develop new industry solutions and help lead the
process of change in the securities marketplace.
Scalable Trade Settlement with highest levels of Straight-Through Processing
(STP)
Full Investment Support that includes:

Comprehensive

support

for

subscriptions

to

Initial

Public

Offerings/Follow-on Public Offerings (IPO/FPO)

Processing of instructions to exercise warrants

Support for subscriptions to mutual funds, money market funds, listed

open-end and exchange-traded funds

Robust corporate actions functionality, leveraging system enhancements

Careful monitoring of announcement sources

Timely and accurate notification as well as agenda items

Market Information :We can blend traditional global custody services with
domestic direct custody access to markets, to meet comprehensive and most
complex custodial needs, including:
Safekeeping and settlement : Our high STP rates ensure that trades settle with a
minimum of manual intervention.
Income processing and corporate actions : We provide information to help
clients manage their cash assets effectively and maximize their investment
returns.

Record keeping and reporting : Our reports give critical information on

securities and cash positions, along with transaction status.
Technological sophistication We have an advanced IT infrastructure which
enables seamless processing with thorough operational controls.
Fund Accounting Services
SBI-SG GSS is a provider of customized Fund Accounting and Administration
solutions. The various types of Scheme handled includes Equity , Debt,
Liquid , Balance , Arbitrage , Gilt, Exchange Traded Funds and Offshore Funds
with Dividend - Payout and Reinvestment & Growth option. We have a fully
integrated fund accounting web based application compatible with most of the
software being used by the clients for providing a very high level of straight
through processing (STP).
We offer full range of Fund Accounting services for Investment Players, such
as Mutual Funds, Insurance Companies, Pension Funds and Portfolio
Management Services. Our Fund Accounting Services include :
NAV CALCULATION & REPORTING

Book keeping for all transactions

Valuation of all types of securities

Income & expenses accounting

Updating NAVs on various Forums

ADMINISTRATION

Investment Policy Monitoring

Reconciliations

Distributable surplus computation

COMPREHENSIVE REPORTING

Exclusive Fund Manager Reports

Regulatory & Compliance Monitoring Reports -

Monthly compliance Report

Deployment of Fund report ( Debt & Equity )

Load Balance report

Half Yearly Report

Annual Accounts -

Scheme-wise Annual Financial Statement preparations

Providing necessary accounting records and work paper schedules for

the Clients annual audit

RISK ANALYSIS & PERFORMANCE MEASUREMENT

Providing necessary reports including - Regulatory & Statutory Reports
For more information, Please visit www.sbisgcsl.co.in

Deposits V/s Loan :Deposits:Deposits mean money keep into a bank for safely. People earn money
for daily expenses . They want to keep a small part of earning for future.
For this purpose Bank provide the security to the deposits of customers.
According to their customers demand SBI provides a various deposits
schemes. These schemes are as follow:
https://www.sbi.co.in/portal/web/personal-banking/sbi-tax-savingsscheme-2006
1. Current Account
2. Savings Bank Account
3. Term Deposits
4.
5.
6.
7.
8.
9.

Special Term Deposits

Multi Option Deposit Scheme
Saving Plus Accounts
RECURRING DEPOSIT
PREMIUM SAVINGS ACCOUNT
SBI TAX SAVINGS SCHEME, 2006

Current Account : -

SBI provide a various facilities of Current Account

holders. These facilities are:

Personal Accident Insurance of Rs. 2 lacs (w.e.f. 01/08/2013) available at

an annual Premium of Rs. 100/-.

Internet Banking.

Standing instructions.

Low minimum balance requirement.

Overdraft facility available based on credit history

Free ATM / Debit Card in the 1st year; charge from 2nd year onwards.

No restrictions on number of Payments / Withdrawals

No interest paid on Deposits

Transfer of account to any branch possible

Account maintenance charge applicable

No Passbook is issued but monthly Statement of account is issued

Nomination facility available

KYC Norms as applicable to be followed for opening of Account

Multicity cheque facility available

Savings Bank Account :-SBI provide a various facilities of Saving Bank

Account holders. These facilities are:

No Minimum Balance requirement.

Personal Accident Insurance of Rs. 2 lacs (w.e.f. 01/08/2013) available at

an annual Premium of Rs. 100/-.

Earn Interest at 4.00% p.a.

Transferability of accounts to any SBI Branch without changing the

account number.

Multicity cheques available.

Internet Banking, Mobile Banking, Kiosk Banking available.

Safe Deposit lockers available.

Interest is calculated on a daily balance.

Nomination facility is available and recommended.

Passbook issued free of charge.

50 Multicity cheque leaves free in the first instance thereafter Rs. 2/- is
charged for each subsequent leaf for Savings Bank account having QAB
as on previous quarter end Rs. 25000/- and above. 20 Multicity cheque
leaves free in the first instance thereafter Rs. 3/- is charged for each
subsequent leaf for Savings Bank account having QAB as on previous
quarter end below Rs. 25000/-. Emergency Cheque request (10 leaves
set): Rs 3/- per leaf.

Multiple variants of ATM-cum-Debit Cards available.

Inter Core charges NIL for transfer transactions.

SWEEP FACILITY
ATM-CUM DEBIT CARD
Mobile Banking
Internet Banking

Term Deposits :

Period of deposit from 7 days to 10 years.

Deposit Amount: Minimum: Rs.1000/-, Maximum: No limit

Payment of interest at Monthly/Quarterly/Calendar quarter basis as per

your requirement.

Payment of interest on monthly interval will be at discounted rate.

Interest will be paid at the contracted rate irrespective of change in the

rate thereafter.

Senior Citizens get 0.25% extra interest rate

Loans / OD upto 90% of the Principal deposit

Premature payment:
o

The penalty for premature withdrawal of deposits below Rs 15

lacs for all tenors will be 0.50% p.a. provided these have remained
with the Bank for at least 7 days.

However, for single deposit of Rs 15 lacs and above, there shall be

no penalty for premature withdrawal for tenors below 1 year
provided these have remained with the bank for at least 7 days.

In all other cases above one year, in case of premature withdrawal,

the interest shall be 0.50% below the rate applicable for the period
the deposit has remained with the Bank or 0.50% below the
contracted rate, whichever is lower. However, no interest will be
paid if the deposit remains with the bank for less than 7 days
period.

Auto renewal is exercised if maturity instructions are not given

Flexibility to convert TDR to STDR and vice versa

Nomination facility available and recommended

TDS at prevalent rate is deducted at source if Form 15G/15H not

submitted.

TDS will be deducted when interest paid or accrued or reinvested per

customer, per branch, exceeds Rs. 10,000 in a financial year.

The TDR can be linked to any Savings Bank or Current Account from
where you can withdraw periodical interest. TDS payments, if any, can
be made to the Government as and when it is due from linked account.

AUTOMATIC RENEWAL

Special Term Deposits:- Reinvestment plan

Period of deposit from 6 Months to 10 years.

Interest compounded quarterly & paid at the time of maturity.

All other features are the same as those of Term Deposit.

The STDR can be linked to any Savings Bank or Current Account

from where TDS payments can be made to the Government as and when
it is due.

Multi Option Deposit Scheme

These are the Term Deposits but at the time of need for funds,
withdrawals can be made in units of Rs.1,000/- from the Deposits by
issuing a cheque from Savings Bank Account or through overdraft
facility from Current account.

Flexibility in period of Term Deposit from 1 year to 5 years.

Minimum amount of Rs. 10,000/- only

Saving Plus Accounts:-

Savings Plus Account is a Savings Bank Account linked to MODS, wherein

surplus fund above a threshold limit from the Savings Bank Account is
transferred automatically to Term Deposits opened in multiples of Rs. 1000.

Any surplus funds retaining a minimum of Rs. 25000/ in Savings

Bank(to be set up by the customer) will be transferred as Term
Deposit with a minimum of Rs. 10000/- and in multiple of Rs. 1000/at one instance

Account holder has the flexibility to choose the period of deposit from
1 year to 5 years.

Payments in excess of available balance in the Savings bank Account

can be made by breaking MODs Last In First Out.

RECURRING DEPOSIT

Monthly deposits of Minimum Rs.100/- no maximum.

Minimum period 12 months maximum 120 months.

Rate of interest as applicable to Banks TDR / STDR for the period of

the RD.

Loan / Overdraft up to 90% available against the balance in RD

account.

TDS is not applicable.

PREMIUM SAVINGS ACCOUNT

Premium Savings Account provides an enriched version of Savings Bank

account consisting of various concessions and add-ons.
Auto-sweep facility

Auto-sweep facility will be operative at monthly intervals.

Term Deposits (TD)/ Special Term Deposits (STD) would be created

under the MOD scheme, in units of Rs.1,000/-, subject to a minimum
amount of Rs. 10,000/-.

Unitised break-up available for withdrawing the deposits conveniently.

TD/STD shall be opened for a period of 1 year to 5 years.

Other Facilities available

50 Multicity cheque leaves free in the first instance thereafter Rs. 2/- is
charged for each subsequent leaf for Savings Bank account having QAB
as on previous quarter end Rs. 25000/- and above. 20 Multicity cheque
leaves free in the first instance thereafter Rs. 3/- is charged for each
subsequent leaf for Savings Bank account having QAB as on previous
quarter end below Rs. 25000/-. Emergency Cheque request (10 leaves
set): Rs 3/- per leaf.

Unlimited number of debits.

ATM-cum-Debit Gold cards (Master/ Visa) will be issued, free of cost.

Internet Banking facility.

50% concession in draft issue charges and cheque collection charges.

Bankers Cheques will be issued free.

No service charges in respect of outward RTGS/ NEFT transactions.

SBI TAX SAVINGS SCHEME, 2006

Eligibility: Resident Indiansfor himself/ herself as an individual or in the
capacity of the Karta of the Hindu undivided family, having Income tax
Permanent Account Number (PAN).
Minimum Deposit: : Rs. 1,000/- or multiples thereof.
Maximum Deposit: Not exceeding Rs. 1,50,000/- in a year.
Type of account: Term Deposit (TD) account / Special Term Deposit (STD)
account.
Tenure: Minimum tenor is 5 years and maximum is 10 years.
Rate of Interest: As applicable to Term Deposits.
Premature withdrawal: No term deposit shall be encashed before the expiry of
five years from the date of its receipt.
Loan facility : Not available. The TD/STD shall not be pledged to secure loan
or as security to any other asset.
PERSONAL FINANCE
https://www.sbi.co.in/portal/web/personal-banking/personal-finance
State Bank of India has a variety of schemes under Personal Finance to satisfy
varying needs of the banking public. The Bank offers the following schemes
with attractive rates of interest:

Home Loan

Personal Gold Loan

Car Loan

Personal Loans

Loans Against Securities

Loans Against Property

Career Loan

Education Loan

Many of our branches offer loans under Personal Finance. This section also
offers an EMI calculator to facilitate computation of monthly repayment.
Home Loan
Home Loan
Interest Rates with effect from 26th August 2014
(Base Rate- 10% P.A.)
Borrowers Category

Home

Loan

Interest Maxgain above Rs. 1 Cr.

Rate, Irrespective Loan

Limit
Women

10 bps above the BR 35 bps above the BR

10.10% PA

Others

10.35% PA

15 bps above the BR 40 bps above the BR

10.15% PA

10.40% PA

The woman should be the sole applicant or first co-applicant of Home

Loan and also

The property proposed to be financed should be either in the sole

name of the woman borrower or she should be the first owner in case
of joint ownership

CAR LOAN

SBI NEW CAR LOAN SCHEME

SBI COMBO LOAN SCHEME

CERTIFIED PRE-OWNED CAR LOAN

CAR LOAN SCHEME FOR USED CAR

2-WHEELER LOAN

SBI LOYALTY CAR LOAN SCHEME ( Car Loan for SBI Home
Loan Borrowers)

SBI NANO YOUTH CAR LOAN SCHEME

SUPER BIKE LOAN SCHEME

SBI NEW CAR LOAN SCHEME

SBI NEW CAR LOAN SCHEME
Interest Rates with effect from 1st August 2014
(Base Rate- 10% P.A.)

Tenure
For all tenure

Rate of Interest
For term loan and overdraft
0.45% above the BR 10.45% PA (for men)

0.40% above the BR 10.40% PA (for

women)

SBI COMBO LOAN SCHEME

SBI COMBO LOAN SCHEME
Interest Rates with effect from 1st August 2014
(Base Rate- 10% P.A.)
Tenure
For all tenure

Rate of Interest
For term loan and overdraft
0.45% above the BR 10.45% PA (for men)
0.40% above the BR 10.40% PA (for
women)

CERTIFIED PRE-OWNED CAR LOAN

Interest Rates with effect from 1st August 2014
(Base Rate- 10% P.A.)
Tenure
Upto 3 years
Above 3 years

Rate of Interest
6.00% above the BR 16.00% PA
6.50% above the BR 16.50% PA

CAR LOAN SCHEME FOR USED CAR

CAR LOAN SCHEME FOR USED CAR
Interest Rates with effect from 1st August 2014
(Base Rate- 10% P.A.)
Tenure
Upto 3 years
Above 3 years

Rate of Interest
7.25% above the BR 17.25% PA
7.50% above the BR 17.50% PA

2-WHEELER LOAN
2-WHEELER LOAN
Interest Rates with effect from 1st August 2014
(Base Rate- 10% P.A.)
Tenure
Upto 3 years

Rate of Interest
8.25% above the BR 18.25% PA

SBI LOYALTY CAR LOAN SCHEME ( Car Loan for SBI Home Loan
Borrowers)
SBI LOYALTY CAR LOAN SCHEME (Car Loan for SBI Home Loan
Borrowers)
Interest Rates with effect from 1st August 2014

(Base Rate- 10% P.A.)

Borrowers

Car loan, Combo Used

Category

loan,

NRI

car

loan

car scheme

loan
Men

PRE-OWNED

CAR LOAN
0.20% above the 1.25% above the 1.25% above the
BR 10.20.25% BR 11.25% PA

Women

CERTIFIED

BR 11.25% PA

PA
0.15% above the 1.20% above the 1.20% above the
BR 10.15% PA

BR 11.20% PA

BR .20% PA

SBI NANO YOUTH CAR LOAN SCHEME

SBI NANO YOUTH CAR LOAN SCHEME
Interest Rates with effect from 1st August 2014
(Base Rate- 10% P.A.)
Tenure
For all tenure

Rate of Interest
0.75% above the BR 10.75% PA (for men)
0.70% above the BR 10.70% PA (for
women)

SUPER BIKE LOAN SCHEME

SUPER BIKE LOAN SCHEME
Interest Rates with effect from 1st August 2014
(Base Rate- 10% P.A.)

Tenure
For all tenure

Rate of Interest
3.00% above the BR 13.00% PA

Personal Loans
Personal Loans
Interest Rates with effect from 7th November 2013
(Base Rate- 10% P.A.)

Scheme Name

Rate of Interest

Clean Overdraft

8.25% above the BR 18.25% PA

Personal loan Scheme (SBI Saral)

8.50% above the BR (floating)

18.50% PA

SBI Pension loan

3.50% above the BR 13.50% PA

Jai Jawan Pension loan

4.75% above the BR 14.75% PA

Festival loan scheme

6.75% above the BR 16.75% PA

Xpress Credit

Level of Check Off

Full Check Off

300bps-350bps

above

the BR 13% -13.50%

PA
Partial Check Off

400bps-450bps

above

the BR 14% -14.50%

PA
No Check Off

500bps-550bps

above

the BR 15% -15.50%

PA

Loans Against Securities

Loans Against Securities
Interest Rates with effect from 7th November 2013
(Base Rate- 10% P.A.)
Loan against NSCs/KVPs/RBI Relief Bond/Surrender Value of SBI
Life/LIC/SBI Magnums etc.

Tenure
Rate of Interest
Upto 3 years
4.50% above the BR 14.50% PA
More than 3 years but less than 6 4.50% above the BR 14.50% PA
years

Loan against Shares/Debentures/Bonds

Scheme
Equity Plus Scheme
Loan against Share and Debenture
Loan to Employees to subscribe for

Rate of Interest
6.50% above the BR 16.50% PA
6.50% above the BR 16.50% PA
6.50% above the BR 16.50% PA

ESOPs

Loan for subscription to IPOs

Scheme
For Employees

qualifying

Xpress Credit
Other

Rate of Interest
under 6.50% above the BR 16.50% PA
7.00% above the BR 17.00% PA

Loan against units of SBI Debt Fund Series

Scheme
Short Duration Loan
Long Duration Loan

Rate of Interest
4.50% above the BR 14.50% PA
4.50% above the BR 14.50% PA

SBI Gold Loan

Types of Facility
Demand Loan
Loans Against Property
Loans Against Property

Rate of Interest
2.50% above the BR 12.50% PA

Interest Rates with effect from 7th November 2013

(Base Rate- 10% P.A.)
Loan against mortgage of Immovable Property
Size of Credit Limit
Upto 1 Crore

Rate of Interest
2.75% above the BR (floating)

Above 1Crore

12.75% PA
3.00% above the BR (floating)
13.00% PA

No Overdraft against Mortgage Property

Rent Plus Scheme

Loan Amount
Rate of Interest
Upto 7.50 Crore inMetro Center and 3.10% above the BR 13.10% PA
5.00 Crore in Non Metro Center
Others

3.25% above the BR 13.25% PA

Career Loan
Career Loan
Interest Rates with effect from 7th November 2013
(Base Rate- 10% P.A.)
SBI Career loan
Type of Security
Land/Building

Rate of Interest
4.50% above the BR 14.50% PA

Banks TDRs/STDRs

1.00% above the rate of interest

payable on deposits

Govt.

Security/public

sector 4.25% above the BR 14.25% PA

bonds/NSCs/KVPs/RBI Relief Bond,

LIC Policy
(In case interest is paid during the course period a rebate of 0.50% will be
admissible, only during the moratorium period)
Other Scheme
SBI Education Plus
Bhagya Rekha Loan

Rate of Interest
4.50% above the BR 14.50% PA
2.00% above the BR 12.00% PA

Education Loan
Education Loan
Interest Rates with effect from 7th November 2013
(Base Rate- 10% P.A.)
SBI Student Loan Scheme
Loan Amount
Upto 4 Lacs
Above 4 lacs and upto 7.5 lacs
Above 7.5 lacs

Rate of Interest
3.50% above the BR 13.50% PA
3.75% above the BR 13.75% PA
1.75% above the BR 11.75% PA

Note :

0.5% concession in interest for girl students.

1% concession for full tenure of the loan, if interest is serviced promptly
as and when applied during the moratorium period, including course
duration.

SBI Scholar Loans

Special ROI for IIMs and other select Management Institutions
25 bps above the Base Rate , Currently 10.25%
SBI loan scheme for Vocational Education and training
3.50% above the BR 13.50%

SBI is the 66th largest bank in the world.

On 30 April 1955, the Imperial Bank of India became the State Bank of India.
The government 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.