STATE BANK OF INDIA

State Bank of India

Table of Contents

Introduction3

Primary Internal and External influences on State Bank of India4

Impact of Globalisation on State Bank of India6

Use of Technology at State Bank of India9

Change and Innovation at State Bank of India11

Recommendation14

State Bank of India

Introduction

The study is related to State Bank of India which is the leading commercial bank of India. The bank offers different services to the customers that include treasury operations, retail banking, international banking and commercial banking. State Bank of India is a central part of State Bank Group that entails seven other banks and offers additional services for instance insurance and mutual funds. The bank mainly functions in India with the 222933 employees and it is head quartered in Mumbai.

State Bank of India through its personal banking division provides term deposits, savings deposits, recurring deposits, home loans, education loans, current deposits and auto loans. State Bank of India has different services that also include the State Bank of India Global Trade Finance and, Factors and Commercial Services. Through the subsidiary of SBI that is State Bank of India Capital Markets, the bank offers the service of merchant banking services all through the country. Besides it, the unit of small & medium enterprises offers its services in relation to the financial requirements of SMEs around the country. In addition to this, the wholesale banking group of State Bank of India comprises of stressed assets management group, strategic business units, project leasing and finance unit, mid corporate group and corporate accounts group which also facilities different stake holders. In addition to this, the government banking unit of State Bank of India offers different schemes that includes electronic accounting system in service and excise tax for indirect taxes, electronic payment of service tax, rail freight, customs duty, central excise; moreover, the bank also established the centralized pension processing centres that serves the needs of numerous public offices.

Primary Internal and External influences on State Bank of India

State Bank of India suffers various influences throughout its existence that include both internal and external. Internal and external influences define the positioning of the bank before the reality. It is observed that the State Bank of India is reactive while other banks act as preventive. The role model of banks becomes the differential success of State Bank of India. The limitations can be found of a structural or systemic. We will see two models of explanation:

Structural involves concepts that Porter defines as fragmentation of the banking industry where State Bank of India exists. In one of the features is the ease of entry of new competitors in the market. Lack of economies of scale (economy generates the experience curve), high transport costs, high inventory costs, fluctuations in sales, among others.

Limiting systemic problems are segmented in the banking industry where State Bank of India exists. That is, specific problems such as the lack of inventory control, disruption of business sectors, lack of management control over the factors of production, depreciation of staff and lack of systemic view ...