STATE BANK OF INDIA

Case Study on State Bank of India



Case Study on State Bank of India

Introduction

The State Bank of India (SBI) is the largest bank of the country. It is measured by a number of business offices and the employees as one of the largest banks of the world. State Bank of India is listed on the share index of BSE Sensex. It was established in the year 1806, under the name of Bank of Bengal. It was nationalised in the year 1955 with the Reserve Bank of India, which received a share of 60%. In addition, there are six other SBI associate banks which belong to the State Bank of India. They all add "State Bank of" in their company name and also add this to the regional headquarters of the company. These seven associate banks were originally belonged to Indian princely states and were nationalised in the year of 1959. All of the banks use the same logo of a blue keyhole. The names of the banks are listed below:

State Bank of Hyderabad

State Bank of Bikaner & Jaipur

State Bank of Indore

State Bank of Patiala

State Bank of Mysore

State Bank of Travancore

The SBI is the 29th company which has the best reputation in the world according to Forbes. Also, it is the only bank which gets leading figures in the list of the "Top 10 trademarks of India", according to the annual survey of Brand Finance and The Economic Times in the year of 2010. It is one of the largest of the Big Four Banks of India, along with Punjab National Bank, ICICI Bank and Canara Bank which are the main competitors of the State Bank of India.

In this paper, we will evaluate the internal and external environment influences on the State Bank of India. Also, we will look forward to the effects of globalisation on the bank. In the end, we will discuss the use of technology by the State Bank of India and how does it managed change and innovation in today's global era.

Task 1

Internal and External Influences on State Bank of India

Strengths

Largest Public Sector Bank

State Bank of India is the largest commercial bank of the country. Its rank is among the top twenty five banks in the region of Asia and it is the only bank of India which appeared in the list of top 100 banks of the world. It is one of the largest banking networks of the world and it is also growing well. The bank has paced itself on the position where it has gotten the world's recognition as a reputable bank of the world.

Low cost CASA and reduced reliance on bulk deposits

Low cost (CASA) current account and savings account deposits have been the main strength of the State Bank of India. During the year 2010 and 2011, the bank saw outstanding growth in all of its businesses and market segments. Growth of low cost CASA deposit base has assisted bank in reducing dependence on bulk deposits, contrary ...