State Bank of India: Innovation and Technology Management Analysis
SCHOOL OF BUSINESS AND LAW
GLOBALISATION AND INNOVATION
Harvard Business School case study on State Band of India: The critique
NELSON NANA NGNINGA
BABS 5
NOVEMBER 2012
LECTURER SETTING ASSESSMENT: Rajendra Kumar /Anand Walser
SCHOOL OF BUSINESS AND LAW
GLOBALISATION AND INNOVATION
Harvard Business School case study on State Band of India: The critique
Contents STATE BANK OF INDIA (SBI): Brief introduction 3 External Influences 3 Internal turmoil 5 State Bank of India & Globalisation 5 The use of technology at SBI 6 Change and Innovation 7 References 10
STATE BANK OF INDIA (SBI): Brief introduction
State Bank of India is India’s largest commercial bank in terms of revenue, assets and market capitalisation. It was led, from February 2011 by its chairman O. P. Bhatt, through a journey of transformation from an old, hierarchical, transactional oriented, government bank to a modern, customer focused and technological advanced universal bank during a course of five years. Formerly known as IBI, the government acquired it with the aim to bring about development in the rural area after the country’s independence from England in August 1947. SBI is stemming from the merger of IBI to other state owned banks. In 1959, after the government passed the State Bank of India Act enabling SBI to take over eight former State-associated banks as its subsidiaries and extend its reach on the territory, it became a virtual powerhouse controlling more than a quarter of the country’s banking industry.
SBI was then a respected bank giant, a responsible corporate with social preoccupation; build up most of the country’s rural regions. By 1990, it dominated the market in terms of deposits and advances. Its cash availability attracted made Indians to bank with them, its employees were almost honoured; they were proud to be SBI member. But maybe too proud, the bank expanded at an astronomic speed, expansion was SBI’s main focus, it was the banks answer to an increasingly
GLOBALISATION AND INNOVATION
Harvard Business School case study on State Band of India: The critique
NELSON NANA NGNINGA
BABS 5
NOVEMBER 2012
LECTURER SETTING ASSESSMENT: Rajendra Kumar /Anand Walser
SCHOOL OF BUSINESS AND LAW
GLOBALISATION AND INNOVATION
Harvard Business School case study on State Band of India: The critique
Contents STATE BANK OF INDIA (SBI): Brief introduction 3 External Influences 3 Internal turmoil 5 State Bank of India & Globalisation 5 The use of technology at SBI 6 Change and Innovation 7 References 10
STATE BANK OF INDIA (SBI): Brief introduction
State Bank of India is India’s largest commercial bank in terms of revenue, assets and market capitalisation. It was led, from February 2011 by its chairman O. P. Bhatt, through a journey of transformation from an old, hierarchical, transactional oriented, government bank to a modern, customer focused and technological advanced universal bank during a course of five years. Formerly known as IBI, the government acquired it with the aim to bring about development in the rural area after the country’s independence from England in August 1947. SBI is stemming from the merger of IBI to other state owned banks. In 1959, after the government passed the State Bank of India Act enabling SBI to take over eight former State-associated banks as its subsidiaries and extend its reach on the territory, it became a virtual powerhouse controlling more than a quarter of the country’s banking industry.
SBI was then a respected bank giant, a responsible corporate with social preoccupation; build up most of the country’s rural regions. By 1990, it dominated the market in terms of deposits and advances. Its cash availability attracted made Indians to bank with them, its employees were almost honoured; they were proud to be SBI member. But maybe too proud, the bank expanded at an astronomic speed, expansion was SBI’s main focus, it was the banks answer to an increasingly
References: * G. Johnson, K. Scholes and R. Whittington, (2008), Exploiting Corporate Strategy, 8th ed., Prentice Hall, p82 * Rajiv Lal, Rachna Tahilyani, (2011), State Bank of India: Transforming a State Owned Giant, President and Fellows of Harvard College