The banking industry in India today comprises of 27 public sectors, 31 private banks and 29 foreign banks. The Indian banking sector is headed for consolidation. The presence of many regional players will see few banks emerging as global competitors. Moreover, the likely rise in interest rates will see bank margins under pressure. Treasury gains may wilt in the current scenario. Bank profits in future may again be driven by core income. Indian banking industry in general and SBI in particular has positioned itself to take advantage of such economic growth, India is likely to achieve.
There are a total of 350 Commercial banks in the country, with more than 70,000 offices. STATE BANK OF INDIA owns 28% percent of these along with its seven associates. The bank has reach. Its three-and-a-half times the size of the next biggest bank, and bigger still than the next five banks put together. The bank has dominance. It has 28% percent of the total banking business in India.
Despite its sheer size, and the legacy of the public sector, the bank is surprisingly nimble. It’s computerizing its branches at a rapid pace, having already done so in 4,000 branches. It hopes to computerize 95% of the branch network by September 2005, and all the branches by December 2005. The bank has tied with TCS to develop core banking solutions, which will help network the branches.
For the moment, SBI is distancing itself from its old ways and charting new territories. A few years from now people will be asking whether it can remain efficient despite the high -growth blueprint. But for now, it can be safely said; the bank is moving forward and taking on competition head on.
Products, services and departments
The bank has brought about a lot of innovation in its products and departments and has come out with various schemes. SBI is providing quality services for its customers, and has been successful in keeping their customers happy. With the support of the investors and customers and the efficient endeavours of the staff, the bank is living upto the expectations of all concerned.
My internship training at State Bank of India was indeed a learning experience. The organisation study has enhanced my knowledge regarding many aspects of administration. . I also got the opportunity to interact with the staff of SBI which proved to be very educative. It was overall a very wonderful and splendid experience which I wholly cherish.
Banking in India has its origin as early as the Vedic period. It is believed that the transition from money lending to banking must have occurred even before. Manu, the great Hindu jurist who has devoted a section of his work to deposits and advances and laid down rules relating to rates of interest.
During the mogul period, the indigenous bankers played a very important role in east India Company; it was the turn of the agency houses to carry on the banking business. The general bank of India was the 1st joint stock bank to be established in the year 1786. The others that followed were the Bank of Hindustan and the Bengal Bank failed in the meantime. In the 1st half of 19th century the East India Company established 3 banks: The Bank of Bengal in 1809.
The Bank of Bombay in 1840 and
The Bank of Madras in 1843.
These 3 banks also known as Presidency Banks were independent units and functioned as well. These 3 banks were amalgamated in 1920 and a new bank, the Imperial Bank of India was established on 27th Jan 1921. With the passing SBI act in 1955, the undertaking of the Imperial Bank of India was taken over by the newly constituted State Bank of India.
The RBI which is the central bank of India was created in 1935, by passing RBI act 1934. In the wake of the swadeshi movement, a no. of banks with Indian management were established in the country namely, Punjab National Bank ltd., Bank of...
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