Evolution

The origins of the State Bank of India can be traced back two hundred years to the
establishment of the Bank of Calcutta. The keen interest shown by the directors of
the bank in maintaining records found an echo in 1975 when R.K. Talwar, a former
chairman of the State Bank, commissioned an account of the bank's evolution from
its earliest days.

Banking in those days was a far cry from what it is today-an unbiased, uniform
system that has led to increased purchasing power across classes. At the time, even
though the rupee was the unifying currency, there also existed a confusing array of
coinage whose value could vary by the region. Besides the cowrie-sea shells
brought in from the Maldives-were the sicca, the Arcot rupee, notes issued by
various banks and copper, silver and gold coins that the British tried to introduce as
a standard coinage. Only the wealthy Indians and the Europeans had any use for
bank notes-for the greater part of the population even the lowly copper coin had a
purchasing power beyond their day-to-day needs. Rates of interest, while regulated
for the banks to a maximum of 12 per cent, were exorbitant for the peasants,
labourers and artisans with 50 per cent being fairly standard.

The organizational set-up had its own share of anomalies, with salaries far lower
for Indians than Europeans. The highest an Indian could aspire to was the position
of khazanchee, a thankless job whose responsibility was equal to that of the
secretary and treasurer, but at a salary that was one-seventh. Even so, the job
would attract applications from some of Calcutta's wealthiest and best educated, as
the British had denied all superior government jobs to Indians.

The Bank of Bengal was followed by the Banks of Bombay and Madras and these
three comprised the presidency banks that in 1921 would become the Imperial
Bank, the immediate precursor to the State Bank of India. This volume presents a
panoramic view of their functioning till 1876, and through them the changes that
were occurring in the trading environment and the economy. The Roots 1806-1876
is an integrated history of the development of banking, commerce, finance and
industry in India, and of the people, from Ram Comul Sen, the dedicated
khazanchee of the Bank of Bengal, to his petty-minded boss, George Udny, who
guided its course.

History

The evolution of State Bank of India can be traced back to the first decade of the
19th century. It began with the establishment of the Bank of Calcutta in Calcutta,
on 2 June 1806. The bank was redesigned as the Bank of Bengal, three years later,
on 2 January 1809. It was the first ever joint-stock bank of the British India,
established under the sponsorship of the Government of Bengal. Subsequently, the
Bank of Bombay (established on 15 April 1840) and the Bank of Madras
(established on 1 July 1843) followed the Bank of Bengal. These three banks
dominated the modern banking scenario in India, until when they were
amalgamated to form the Imperial Bank of India, on 27 January 1921.
An important turning point in the history of State Bank of India is the launch of the
first Five Year Plan of independent India, in 1951. The Plan aimed at serving the
Indian economy in general and the rural sector of the country, in particular. Until
the Plan, the commercial banks of the country, including the Imperial Bank of
India, confined their services to the urban sector. Moreover, they were not
equipped to respond to the growing needs of the economic revival taking shape in
the rural areas of the country. Therefore, in order to serve the economy as a whole
and rural sector in particular, the All India Rural Credit Survey Committee
recommended the formation of a state-partnered and state-sponsored bank.
The All India Rural Credit Survey Committee proposed the take over of the
Imperial Bank of India, and integrating with it, the former state-owned or state-
associate banks. Subsequently, an Act was passed in the Parliament of India in
May 1955. As a result, the State Bank of India (SBI) was established on 1 July
1955. This resulted in making the State Bank of India more powerful, because as
much as a quarter of the resources of the Indian banking system were controlled
directly by the State. Later on, the State Bank of India (Subsidiary Banks) Act was
passed in 1959. The Act enabled the State Bank of India to make the eight former
State-associated banks as its subsidiaries.

The State Bank of India emerged as a pacesetter, with its operations carried out by
the 480 offices comprising branches, sub offices and three Local Head Offices,
inherited from the Imperial Bank. Instead of serving as mere repositories of the
community's savings and lending to creditworthy parties, the State Bank of India
catered to the needs of the customers, by banking purposefully. The bank served
the heterogeneous financial needs of the planned economic development.

Branches
The corporate center of SBI is located in Mumbai. In order to cater to different
functions, there are several other establishments in and outside Mumbai, apart from
the corporate center. The bank boasts of having as many as 14 local head offices
and 57 Zonal Offices, located at major cities throughout India. It is recorded that
SBI has about 10000 branches, well networked to cater to its customers throughout
India.

ATM Services
SBI provides easy access to money to its customers through more than 8500 ATMs
in India. The Bank also facilitates the free transaction of money at the ATMs of
State Bank Group, which includes the ATMs of State Bank of India as well as the
Associate Banks – State Bank of Bikaner & Jaipur, State Bank of Hyderabad, State
Bank of Indore, etc. You may also transact money through SBI Commercial and
International Bank Ltd by using the State Bank ATM-cum-Debit (Cash Plus) card.

Subsidiaries
The State Bank Group includes a network of eight banking subsidiaries and several
non-banking subsidiaries. Through the establishments, it offers various services
including merchant banking services, fund management, factoring services,
primary dealership in government securities, credit cards and insurance.

The eight banking subsidiaries are:

• State Bank of Bikaner and Jaipur (SBBJ)

• State Bank of Hyderabad (SBH)

• State Bank of India (SBI)

• State Bank of Indore (SBIR)

• State Bank of Mysore (SBM)

• State Bank of Patiala (SBP)

• State Bank of Saurashtra (SBS)

• State Bank of Travancore (SBT)

Functions
The State Bank of India acts as an agent of the Reserve Bank of India and performs
the following functions:

(1) Borrows money:- The Bank borrows money from the public by accepting
deposits such as current account deposits, fixed deposits and savings deposits.
(2) Lends money:- It lends money to merchants and manufacturers for short
periods. It also lends to farmers and co-operative institutions. It lends mostly on the
security of easily realizable commodities like rice, wheat, cotton, oil-seeds, cloth,
gold and government securities. The Bank can lend against agricultural bills upto a
maximum period of fifteen months and incase of other bills upto a maximum
period of six months.

(3) Banker’s Bank:-The State Bank of India acts as the banker’s bank. In
discharging this responsibility, the bank provides loans to commercial bank when
required and also rediscount their bill. It also acts as the clearing house of the
commercial bank.

(4) Government’s Bank:- The State Bank of India also acts as the agent of the
Reserve Bank of India. As an agent, the State Bank of India maintains the
treasuries of the State Government. The Bank also manages the debts floated by
the State Governments.

(5) Remittance:- The State Bank of India facilitates remittance of money from one
place to another. It also helps in the transfer on the funds of the State and Central
Government.
(6) Functions as Central Bank:- The State Bank of India performs the functions of
a Central Bank.

(7) Subsidiary functions:- The State Bank performs various subsidiary services
also. It collects checks, drafts, bill of exchange, dividends interest, salaries and
pensions on behalf of its customers. It purchases and sells securities on behalf of its
customer. It receives valuables and documents for safe custody and maintains safe
deposit vaults.

SECTORS

1. AGRICULTURAL/ RURAL

State Bank of India caters to the needs of agriculturists and landless agricultural
labourers through a network of 7400 rural and semi-urban branches. Apart from
the branches, there are 427 Agricultural Development Branches (ADBs) which
also cater to agriculturists.

SBI’s branches have covered a whole gamut of agricultural activities like crop
production , horticulture , plantation crops, farm mechanization, land development
and reclamation, digging of wells, tube wells and irrigation projects, forestry,
construction of cold storages and godowns, processing of agri-products, finance to
agri-input dealers, allied activities like dairy , fisheries, poultry, sheep-goat,
piggery and rearing of silk worms.

To give special focus to agriculture lending Bank has set up agri business unit.
Bank has also agri specialists in various disciplines to handle projects/ guide
farmers in their agri ventures. Advances are given for very small activity covering
poorest of the poor to hitech activities involving large fund outlays.

SBI is the leader in agri finance in the country with a portfolio of Rs.56,000 crs in
agri advances covering around 70 lac farmers.
Considering that agriculture would continue to be significant driver of Indian
economy, with the possibilities of rapid growth in emerging areas like contract
farming, agro-processing and agro-export zones, SBI focuses on the creation of a
separate unit with a distinct organizational structure and under noted objectives:-

• Providing focused attention on the banking requirements of the agriculture

segment,
• Achieving 18% target under agricultural advances as required under priority
sector norms,
• Focus on micro finance and SHG opportunities (now part of non-farm sector
in Rural Business),
• Focus on Key Corporate and Institutional relationships in agriculture,
emerging opportunities, and special initiatives, as may be necessary,
• Focus on product development and management,
• Reduce NPA levels in Agriculture,
• Make agriculture a commercial proposition.

This unit has four departments headed by Deputy General Managers.

1) Agri Business, Planning, Monitoring and Market Intelligence

2) Corporate and Institutional Relationship
3) Product Development and Marketing
4) RRBs & Lead Bank Department

At circle level, to enable enhance focus and accountability on agri-business, a

DGM/AGM is responsible for driving agri-business supported by a team. They
focus on Institutional marketing, business opportunities and regulatory functions.
Marketing and recovery teams are created in each region with responsibilities for
marketing and building relationships with dealers of agri-products, organizing
promotional events and for loan sanction, processing, monitoring and recovery.

Traditionally, rural business is associated with agri-spillover effects of economic

growth and renewed focus on infrastructure, development, and employment
generation in rural areas, led to huge investment by the Government in rural India,
with a view to bridge the urban and rural divide.

a. Agricultural banking

State Bank of India's branches have covered a whole gamut of agricultural

activities like crop production , horticulture , plantation crops, farm mechanization,
land development and reclamation, digging of wells, tube wells and irrigation
projects, forestry, construction of cold storages and godowns, processing of agri-
products, finance to agri-input dealers, allied activities like dairy , fisheries,
poultry, sheep-goat, piggery refurbished second hand tractors, loans against pledge
of warehouse receipts, loans against produce stored by the farmer at his own
premises, loans against book debts of Arthias, mulberry cultivation, rearing of silk
worms and grainages. Infact Bank can cover any other agricultural related
activities undertaken.

b. Micro finance

SBI has taken up Self Help Group (SHG) movement as a mission. A noble mission
to reach those families who were hitherto having no access to the credit by any
formal financial institution and, therefore, were depending on informal sources and
moneylenders.
Micro finance is not new to State Bank of India. Bank’s association with non-
government organizations (NGOs) or voluntary agencies in extending financial
help can be traced as far back as 1976 well before NABARD introduced SHG-
Bank Credit Linkage Programme as a pilot project in 1992.

SBI has actively participated in SHG-Bank Credit Linkage programme since its
inception in 1992 as a pilot project of NABARD. Since then, the Bank has made a
steady progress in financing SHGs. As on March 2010, SBI’s branches spread
throughout the length and breadth of the country have opened 12,16,891 Savings
Bank account of SHGs out of which more than 10.62 lac SHGs have been enjoying
credit facilities, thus benefiting more than 138 lac poor people. 85% of these
SHGs are women SHGs. The year-wise cumulative position of SHGs-Bank
Linkage programme for the last 4 years is as under:

Year March ‘07 March ‘08 March ‘09 March ‘10

SHGs linked (financed) 7,68,301 10,51,640 13,73,465 17,12,474
No. of beneficiaries 99,87,913 1,37,55,451 1,84,18,165 2,22,62,162
Amount disbursed 3468.25 cr. 5290.55 cr. 8050.52 cr. 11575.84 cr.
Amount outstanding 2420.33 cr. 3646.54 cr. 5363.00 cr. 6769.08 cr.

Amount in Savings a/c 599.52 cr. 667.52 cr. 762.53 cr. 846.50 cr.

(Amt. in Rs.)

SBI is maintaining its position as a leader among Commercial Banks in credit

linking of SHGs and is a prime driver for the movement. As at the end of March
2010, SBI with a share of approximately 31% of total SHGs financed by
Commercial Banks, is far ahead of others.

Bank has successfully initiated various measures toward widening its SHG
network. To list a few examples:
(i) Sensitisation of staff: Bank keeps sensitizing the staff from Manager to
Messenger working in rural and semi-urban branches towards the
programme.

(ii) Special training programmes in SHGs are being conducted at 54 training

centres of the Bank in the country apart from State Bank Institute of Rural
Development, Hyderabad.

(iii) Close liaison with NGOs: Operating functionaries at branch level and region
level are in close contact with NGOs in their area to take the movement
ahead. For the purpose, regular meetings are arranged with the NGOs and
their support is solicited.

(iv) SHG cells: Special SHG cells have been opened at major branches.

(v) Lending to NGOs / Federations of SHGs / MFIs: Lending to reputed NGOs /

Federations of SHGs on selective basis for on lending to SHGs / JLGs /
Individuals is being encouraged.

(vi) Sahayog Niwas: SBI has launched its Housing Loan product ‘SAHAYOG
NIWAS’ meant for SHG members. Under the scheme formulated keeping
the socio-economic conditions of villages in sight, housing loans to the
extent of Rs.50,000/- are given to the SHG members without any mortgage
of house / land. Response to this product is very encouraging.

(vii) SBI Life - Shakti: SBI Life, our insurance subsidiary, is the first to introduce
a life insurance scheme, especially designed for SHG members. Special
feature of the scheme is that entire premium amount paid by the member is
refunded after maturity, i.e., 10 years.
(viii) Rural training institutes: To help the rural youth to stand on their feet, two
RSETI type training institutes have been established at Gulbarga and Gadag
in Karnataka State, to impart training in self employment to rural youth free
of cost.

(ix) Appreciation by Government: A number of our branches / Circles have also

received commendation and appreciation from various State Governments
for doing excellent job in SHG-Bank Credit Linkage programme.

Bank assigns job of recovery of NPA advances to SHG on contract basis to

scale up their viability.

(x) Samanwita: Bank has sponsored and financially supported NGO

‘SAMANWITA’ in collaboration with Government of Orrissa for
supplementing the process of socio economic upliftment of the tribal and the
downtrodden in the poorest and most backward Kandhamal district of
Orrissa State where 52% of the population is that of tribal. Core activities
performed by Samanwita are empowerment of people through promotion of
SHGs, especially women SHGs and development of human resources.

(xi) SHPI status: State Bank of India is the first Commercial Bank to earn SHPI
status.

(xii) SHGs and SHG Federations have been made eligible to work as Business
Correspondents / Facilitators to increase banks outreach in unbanked areas
to service the underserved effectively and to facilitate income generating
activities for SHGs / SHG Federations.
(xiii) SBI has been actively encouraging SHGs and their members to migrate to
micro enterprise model from lending and savings model facilitating them to
scale up to normal customer of banking services.

SBI has set for itself to hit a target of credit linking 2 million SHGs up to March
2013.

c. RRBs

“The Regional Rural Banks (RRBs) were established with a view to developing the
rural economy by providing, for the purpose of development of agriculture, trade,
commerce, industry and other productive activities in the rural areas, credit and
other facilities, particularly to small and marginal farmers, agricultural labourers,
artisans and small entrepreneurs, and for matters connected therewith and
incidental thereto.

The aggregate deposits and advances of all RRBs (sponsored by the Bank) stood at
Rs.19,894 Cr and Rs.12,151 Cr respectively. They have posted a profit of
Rs.331.08 Cr during the year 2009-10 recording a growth of 63% over March,
2009. The bulk of the loans from RRBs were to the priority sector, which
accounted for over 82% of the total advances, as against the bench mark of 40%.
Further, the percentage of agriculture credit to total advances was at 54.12%, as
against the benchmark of 18%. RRBs have credit linked 2.99 lac SHGs with
disbursements of Rs.1, 536 Cr.”

d. State level bankers' committee (slbc), uttarakhand

State Level Bankers' Committee, set-up as per the Lead Bank Scheme of the
Reserve Bank of India, is the highest body of bankers in the state. The committee
meets once a quarter. In addition to reviewing the activities of the institutional
lending, the quarterly meetings discuss various issues concerning the economic
development of the state, where banks play a pivotal role. The meetings aim at
finding solution to the various problems confronting the state.

Objectives of the Scheme:

The SLBC is an inter-institutional forum for coordination and joint implementation

of development programmes and policies by all the financial institutions operating
in a State. Although SLBC is envisaged as a bankers’ forum, Government Officials
are also included.

• To discuss issues, consider alternative solutions to the various problems in

the field of banking development and evolve consensus for coordinated
action by the member institutions

• To do the necessary spade work for formulation of Annual Credit Plan by

getting in time district-wise resource allocation by banks and dis-
aggregation of the various Governmental programmes.

• To undertake critical analysis of the progress of the implementation of

Annual Credit Plan & Govt. and other agencies sponsored credit-linked
programmes / schemes in the various districts.

• To review the assistance required and provided by Govt. agencies.

• To consider problems referred by the district level forums and take

necessary follow-up action.

• To oversee the implementation of branch expansion programme.

• To review the recovery performance.

• To ensure arrangements for training of both bank and Govt. staff as well as
evaluation of the programmes implemented.

• To take up for consideration such issues as have been raised by the member
banks and/or the State Govt. authorities and questions or inter-bank
difference of views and approach remaining unresolved at the District Level
Consultative Committees.

• To solve operational problems in implementation of Service Area Approach,

Credit Plans, Govt. and other agencies programmes etc.

• To consider ways and needs of extending coverage through organization of

Farmers Service Societies or adoption of Co op. societies, etc.

• To serve as a focal point for the banking system in the State for securing
better liaison with the State Govt. authorities.

• To examine the inter-institutional coordination in the formulation and

implementation of the Annual Credit Plans.

• To review the trends in the flow of credit into rural areas and to the small
borrowers in the neglected sectors.

• To purposefully review the picture revealed by the data compiled in

accordance with the new system of returns and take follow-up measures to
ensure speedy disposal of loan applications, to improve the pace of credit
assistance under specific programmes/schemes such as SGSY, PMRY,
SJSRY, REGP, Employment Generation Programmes etc.

• To review Credit: Deposit Ratio, Priority Sector Advances, advances to

weaker section, financing of minority communities etc.
 • To undertake/ entrust study of any specific problems in implementation of
Lead Bank Scheme, Services Area Approach, Development Programmes,
etc. by appointing Study Groups comprising of representatives of ¾ banks
and Govt. departments more intimately concerned with the problems or
having greater expertise at their command.

• To review progress in implementation of official language.

All the districts of the country have been allocated to the banks (public sector and
to a few private sector). The bank, which has been assigned the lead bank
responsibility, is called Lead Bank of the district and such district for the Lead
Bank shall be termed as Lead District. The distribution of districts was mainly
done on the basis of certain criteria like size and resources of a bank, geographical
contiguity, and ability to undertake lead responsibilities.

The State Bank of India has been assigned lead responsibility in respect of 9
districts out of the total 13 districts across Utarakhand State viz. Alomora,
Bageshwer, Pithoragadh, New Tehri, Pauri, Rudrapryag, Chamoli, Uttarkashi,
Champawat. Lead Bank Responsibility of 4 districts of Haridwar, Udham Singh
Nagar, Dehradun and Nainital is with Punjab National Bank.

SERVICE AREA APPROACH:

Service Area Approach introduced in the year 1989 by RBI is the concept to
accelerate the pace of Rural Development. The main feature of this approach is the
emphasis given to credit planning process with the involvement of gross root level
functionaries from banks and Developmental agencies at block level. The Branch
Managers/ village level workers of Developmental agencies have to conduct
surveys in the entire village falling in their service area taking into consideration
the infrastructure and market potential of the area. These grass root level
functionaries interact through Block level Bankers’ Committee meetings thus
paving way for compilation of realistic Service Area/ Non service area branch
credit plan for each bank branch operating in a block. The Annual action plan/
District credit plan should be drawn up on the basis of updated village profile
realistic projections. The unit of planning as envisaged under Service Area
Approach is “Village” and therefore, the credit plan has to start from the village
and aggregated at grass-root level, i.e. first at branch-level, thereafter at block level
and finally at district level. Thereafter the District Credit Plans submitted by the
Lead Banks in the Districts to the SLBC Convenor are aggregated by the SLBC
Convenor into Annual Credit Plan / Annual Action Plan.

Preparation of Annual Credit Plans:

The Branch Managers/ village level workers of Developmental agencies have to

conduct surveys in the entire village falling in their service area taking into
consideration the infrastructure and market potential of the area. These grass root
level functionaries interact through Block level Bankers’ Committee meetings thus
paving way for compilation of realistic service Area/ Non service area branch
credit plan for each bank branch operating in a block. The Block credit plans
compiled from the branch credit plan are put to deliberation/ approval in the
District level consultative committee meetings. The credit plan has to start from the
village and aggregated at grass-root level, i.e. first at branch-level, thereafter at
block level and finally at district level.

Preparation of District Credit Plans:

District Credit Plans are simply aggregation of the Block Credit Plans of the blocks
falling in a district. These aggregates are compiled, collated, reviewed and
finalized in DCC meetings and given the final shape of annual District Credit
Plans. The District Credit Plan represents the aggregation of block credit plans/
credit plans of all credit agencies operating in the district.

Annual Action Plan/ Annual Credit Plan:

These District Credit Plans, as per the Lead Bank Scheme, are approved at district
level and forwarded by the Lead Banks of various districts in the State to the SLBC
Convenor Bank of the State where these Plans are aggregated and compiled to
form State Credit Plan/ Annual Action Plan. The Annual Action Plan is placed
before the State Level Bankers’ Committee for information of all members.

Time Frame for preparation of Annual Credit Plans:

There is time frame for finalization of the district credit plans. As per this time
frame bank branch falling in rural, semi-urban and urban areas have to initiate the
process of preparation of Annual credit plan on 1st December and to complete it by
31st December every year. These credit plans in the format of Lead Bank Returns-I
for rural, semi-urban/ urban branches having service allocations and LBR-UI for
urban branches without any service Area – are to be submitted to the respective
controlling offices by 31 Dec. The controlling offices have to convey their
approval to the branches by 31st January of the next year so that the plans are
placed in the respective Block Level Bankers’ Committees for their approval by
the end of February. The approved Block Credit Plans are placed in the DCC
meeting for discussion/ approval so that District Credit Plans are launched by 1st
April.

CORPORATE SECTOR
SBI is a one shop providing financial products / services of a wide range for
large, medium and small customers both domestic and international. These
include:

1. Working Capital Financing

• Assistance extended both as Fund based and Non-Fund based facilities to

Corporates , Partnership firms , Proprietary concerns

• Working Capital finance extended to all segments of industries and

services sector such as IT

2. Term Loans

Term loans are provided to support capital expenditures for setting up new
ventures as also for expansion, renovation etc.

3. Deferred Payment Guarantees help to support purchase of capital

equipments.

4. Corporate Loans are provided for a variety of business related purposes to

corporates.

The SBI’s powerful corporate banking formation deploys multiple channels to

deliver integrated solutions for all financial challenges faced by the corporate
universe. The Corporate Banking Group and the National Banking Group are
the primary delivery channels for corporate banking products.
The Corporate Banking Group consists of dedicated Strategic Business Units
that cater exclusively to specific client groups or specialize in particular product
clusters. Foremost among these specialized groups is the Corporate Accounts
Group (CAG), focusing on the prime corporate and institutional clients of the
country’s biggest business centers. The others are the Project Finance unit and
the Leasing unit. The National Banking Group also delivers the entire spectrum
of corporate banking products to other corporate clients, on a nationwide
platform.

The SBI offers an exhaustive range of financial products and services that
answers any business or market circumstance, backed by an assublack expertise
in customizing the product to meet the most sensitive specificities of each client
and each business context.

It is committed to understanding the finest nuances of your business objectives

and engineering cblackit and non-cblackit solutions to suit them. Its team of
highly skilled and experienced product specialists can help you forecast your
cblackit patterns and structure complex transaction requirements.

Commanding unsurpassed respect and legacy in the Indian financial expanse,

the SBI is committed to offering you financial solutions that extract maximum
value from business and market situations.

While the bank is strongly positioned to structure financial packages that

anticipate the changing business environment, its vast network--the world’s
largest—ensures delivery channels of unmatched reach, both in India and
abroad.
 PERSONAL BANKING

State Bank of India offers a wide range of services in the Personal Banking
Segment which are indexed here. Their products are designed with flexibility to
suit customers’ personal requirements. 24 hour facility through ATMs - growing
speedily it has crossed the 5000 mark

DEPOSIT SCHEMES

Whatever are customers’ needs - an investment of their surplus funds or to create a

fund for their childrens' education and marriage, they find a product from SBI that
suits their requirement, delivered at a branch close to them.

Open an account with any of the branches, all of them are fully computerised, and
realise the advantage of our vast network. Place funds in Multi Option Deposit
Scheme, a term deposit which is not fixed at all and comes with a unique break-up
facility which provides you full liquidity as well as benefits of higher rates of
returns, through your savings bank account. Alternately, keep that deposit intact by
availing an overdraft facility, to meet your occasional temporary funds
requirements.
Their products are designed with flexibility to suit your personal requirements.
Enjoy 24 hour banking facility through our Internet Banking/ widest network of
ATMs.

A. 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:
* Housing Loan
* Property Loan
* Car Loan
* Educational Loan
* Personal Loan
* Loan to Pensioners
* Credit Khazana
* Loan Against Shares/Debentures
* Loan For ESOPS
* Festival Loans
* Tribal-Plus Scheme
* EMI Calculator

C. SERVICES

State Bank of India offers a wide range of services in the Personal Banking
Segments, which are:

· eZ-trade@sbi

· SBI VISHWA YATRA FOREIGN TRAVEL CARD

· PAY ROLL CARDS

· ATM SERVICES
 · GIFT CARDS

· GIFT CHEQUES

· INTERNET BANKING

· FOREIGN INWARD REMITTANCE

· LOCKER

SMALL CALE ENTERPRISES

State Bank of India has been playing a vital role in the development of small scale
industries since 1956.The Bank has financed over 8 lakhs SSI units in the
country.It has 55 specialised SSI branches, 99 branches in industrial estates and
more than 400 branches with SIB divisons.
The Bank finances for Small Business activities which are of special significance
to a large number of people as many of these activities can be started with
relatively lower investment and with no special skills on the part of the
enterpreneurs.
The services or products which are provided by SBI under this head are
commodity backed warehouse receipt financing, surabhi deposit scheme, code of
banks commitment to micro and small enterprise, debt restructuring mechanism,
traders easy loan scheme, ssi loans, business current accounts, open term loan,
retail trade, doctor plus, dental doctor plus, sbi shoppe, cyber plus, sme credit plus,
small business credit card, sme petro credit, dal mill plus, paryatan plus, transport
operators, auto loan, charter for ssi, artisan credit card, rice mills plus, school plus
and swarojgar credit card.

SERVICES
Under the head of Services, SBI offers the following to its customers in the field
of:

 Domestic treasury
 Sbi vishwa yatra foreign travel card
 Broking services
 Revised service charges
 Atm services
 Internet banking
 E-pay
 E-rail
 Rbieft
 Safe deposit locker
 MICR codes

 foreign inward remittances

INTERNATIONAL BANKING

International banking services of State Bank of India are delivered for the benefit
of its Indian customers, non-resident Indians, foreign entities and banks through a
network of 131 offices/branches in 32 countries as on 31 July 2009, spread over all
time zones. The network is augmented by a cluster of Overseas and NRI branches
within India and correspondent links with over 522 banks, the world over. Bank's
Joint Ventures and Subsidiaries abroad further underline the Bank's international
presence.

The services include corporate lending, loan syndications, merchant banking,

handling Letters of Credit and Guarantees, short-term financing, collection of clean
and documentary credits and remittances.

The Bank has carved a niche for itself in the Euroland with branches located in
Antwerp, Paris and Frankfurt. Indian banks and corporates are able to avail single-
window Euro services from the Bank's Frankfurt branch.

Spreading its arms around the world, the SBI’s International Banking Group
delivers the full range of cross-border finance solutions through its four wings –
the Domestic division, the Foreign Offices division, the Foreign Department and
the International Services division.

The Domestic wing provides services like merchant banking, shipping finance and
project export finance. The Foreign Offices wing offers the entire range of
international trade and industrial finance products, while the Kolkatta-based
Foreign Department undertakes treasury and currency operations.

The International Services division renders specialized services like correspondent

banking, global link services and country and bank risk exposure monitoring.
Being India’s largest and most trusted commercial bank, the SBI offers you a
network of relationships unmatched in strength and span by any other Indian
financial entity.

The bank has a network of 131 offices/branches in 32 countries spanning all time
zones. The SBI’s international presence is supplemented by a group of Overseas
and NRI branches in India and correspondent links with over 522 leading banks of
the world. SBI’s offshore joint ventures and subsidiaries enhance its global stature.

The bank has carved a niche for itself in Euroland with branches strategically
located in Paris, Frankfurt and Antwerp. Indian banks and corporates are able to
avail single-window Euro services from SBI Frankfurt.

These strengths are reinforced by a dedicated and highly skilled team of

professionals deployed by the bank in each specific segment.

TRADE FINANCE

SBI Understand there is much stake involved in Export Import business Global
economic, political situations, anything and everything that affects you and your
business. SBI offers the trusted financial solution to all your complex Trade
finance related fund needs (both in Indian rupee and foreign currencies).

The gamut of their services includes credit for both pre shipment and post
shipment activities. It also includes Export Avenue in the form of rupee Export
Credit (Pre-Shipment and Post-Shipment), pre-Shipment Export Credit, post-
Shipment Export Credit, PreShipment Credit in Foreign Currency (PCFC), and
import avenue in the form of foreign Currency import credit and supplier's credit.

CORRESPONDENT BANKING

The Correspondent Banking Division develops and maintains relationship with

Banks and Financial Institutions across the Globe. This network Correspondent
Banks forms the foundation for all international operations of SBI.
SBI has correspondent banking relations with around 522 leading banks
worldwide. The bank has deployed a dedicated Correspondent Relations section to
attend exclusively to create, nurture, cultivate and
continue relationship in correspondent banking.

The Correspondent Relations section helps SBI’s correspondents market and

distributes their products for various applications of the bank and its Customers.

Meanwhile, the bank’s Foreign Department, based in Kolkata (Calcutta), handles

all operational aspects of correspondent banking, including all matters pertaining to
the exchange of test keys and swift authenticator keys (SAK), appointment of
correspondents, maintenance and reconciliation of Nostro accounts, and treasury
management.

All trade and retail transactions are handled by the vast net work of SBI's
branches. However, only designated branches handle International Banking
activities. Designated branches (click here) enjoy delegated authority to
receive/pay through the NOSTRO accounts maintained by the Foreign
Department. (Please see Standard Settlement Instructions).

The Rupee Vostro accounts of International Banks and Institutions is maintained

and serviced at SBI’s International Services branch (ISBM) at Mumbai and at
Overseas Branches at Kolkata (Calcutta), Chennai, Cochin, Bangalore and New
Delhi. ACU accounts are also serviced at the overseas branches.

Products and Services provided under this are:

• Creating, nurturing, cultivating and maintaining SBI’s network of over 522

correspondent relationships.
 • Providing support to the correspondents in marketing and distribution of
their products for various applications of the SBI and its clients.

• Complaint Resolution of correspondents.

• Setting up Standard Settlement Instructions.

MERCHANT BANKING

SBI’s Merchant Banking Group is strongly positioned to offer perfect financial

solutions to your business. We specialize in the arrangement of various forms of
Foreign Currency Credits for Corporates.

They provide the resources, convenience and services to meet your needs by
arranging Foreign Currency credits through:

• Commercial loans
• Syndicated loans
• Lines of Credit from Foreign Banks and Financial Institutions
• FCNR loans
• Loans from Export Credit Agencies
• Financing of Imports.

We are internationally the most Preferred Bank by Export Credit Agencies for
Guarantees in case of the Indian Clients or Projects.

SBI being an Indian entity has no India exposure ceiling. Our Primary focus is On
Indian Clients. SBI’s seasoned Team of professionals provides you with Insightful
credit Information and helps you Maximize the Value from the transaction.
The products and services provided under this scheme are listed as:

1] Arranging External Commercial Borrowings (ECB)

2] Arranging and participating in international loan syndication
3] Loans backed by Export Credit Agencies
4] Foreign currency loans under the FCNR (B) scheme
5] Import Finance for Indian corporates

PROJECT EXPORT FINANCE

State Bank of India is an active participant in the area of finance of Project export
activities. These activities will mainly involve financing the fund based and non
fund based requirements of the project exporters.

• Export of engineering goods on deferred payment terms

• Execution of turnkey projects abroad
• Execution of overseas civil construction contracts abroad
• Exports of services are the contracts for export of consultancy, technical and
other services.

Project export contracts are generally of high value and exporters undertaking them
are required to offer competitive terms to be able to secure orders from foreign
buyers in the face of stiff international competition.

The vast network of branches spread all over the country which are authorized to
handle trade related transactions, substantial presence overseas with
branches/offices in all major commercial centers of the world covering all time
zones and our strong network of correspondent relationship with top ranking banks
in several countries adds to our competitive strengths to facilitate and meet various
requirements of project exporters. More over they also enjoy the comprehensive
credentials in International banking community.

Credit facilities offered by SBI are various types of credit facilities, both non fund
and fund based, that the project exporters may need at the time of bidding and/ or
for execution of the project are extended by the Bank.

EXPORTER GOLD CARD

State Bank of India has launched "SBI EXPORTERS GOLD CARD SCHEME" to
meet the working capital needs of exporters with good track record and credit
worthiness, subject to their fulfilling the specified eligibility norms. The salient
features of the scheme are as under:

Assessment norms have been simplified and for units with export turnover up to
Rs. 100 crore simplified assessment in terms of Nayak Committee norms will be
made within specified time norm not exceeding 25 days in case of new sanctions
and 15 days in case of renewals. Further relaxations, subject to certain conditions,
in the form of automatic renewal of limits after the three year tenure as also
simplified method for effecting annual step-up in limits is being examined by the
Bank. Standby limit of 20% will be sanctioned to all the SBI Exporters Gold Card
holders over and above the sanctioned limit to meet credit demands arising out of
receipt of sudden orders.

TREASURY

India's largest bank is also home to the country's biggest and most powerful
Treasury, contributing to a major chunk of the total turnover in the money and
forex markets. Through a network of state-of-the-art dealing rooms in India and
abroad, backed by the assured expertise of informed professionals, the SBI extends
round-the-clock support to clients in managing their forex and interest rate
exposures.

SBI's relationships with over 700 correspondent banks are also leveraged in
extracting maximum value from treasury operations. SBI's treasury operations are
channeled through the Rupee Treasury, the Forex Treasury and the Treasury
Management Group.

The Rupee Treasury deals in the domestic money and debt markets while the Forex
Treasury deals mainly in the local foreign exchange market. The TMG monitors
the investment, risk and asset-liability management aspects of the Bank's overseas
offices.

The Rupee Treasury carries out the bank’s rupee-based treasury functions in the
domestic market. Broadly, these include asset liability management, investments
and trading. The Rupee Treasury also manages the bank’s position regarding
statutory requirements like the cash reserve ratio (CRR) and the statutory liquidity
ratio (SLR), as per the norms of the Reserve Bank of India.

Products and Services under this are:

• Asset Liability Management (ALM): The ALM function comprises

management of liquidity, maturity profiles of assets and liabilities and interest rate
risks.
• Investments: SBI offers financial support through a wide spectrum of
investment products that can substitute the traditional credit avenues of a corporate
like commercial papers, preference shares, non-convertible debentures, securitized
paper, fixed and floating rate products. SBI invests in primary and secondary
market equity as per its own discretion.

These products allow you to leverage the flexibility of financial markets, enable
efficient interest risk management and optimize the cost of funds. They can also be
customized in terms of tenors and liquidity options.

SBI invests in these instruments issued by your company, thus providing you a
dynamic substitute for traditional credit options. The Rupee Treasury handles the
bank’s domestic investments.

The bank’s trading operations are unmatched in size and value in the domestic
market and cover government securities, corporate bonds, call money and other
instruments. SBI is the biggest lender in call.

The SBI is the country’s biggest and most important Forex Treasury, both in
the Interbank and Corporate Foreign Exchange markets, and deals with all the
major corporates and institutions in all the financial centers in India and abroad.

The bank’s team of seasoned, skilled and professional dealers can tailor
customized solutions that meet your specific requirements and extract maximum
value out of each market situation.

The bank’s dealing rooms provide 24-hour trading facilities and employs state-of-
the-art technology and information systems. SBI’s relationships with over 700
correspondent banks and institutions across the globe enhance the strength of the
Forex treasury.
The FX Treasury can also structure and facilitate execution of derivatives
including long term rupee-foreign currency swaps, rupee-foreign currency interest
rate swaps and cross currency swaps.

OVERSEAS TREASURY OPERATION

The Treasury Management Group (TMG) is a part of the International Banking

Group (IBG) and functions under the Chief General Manager (Foreign Offices). As
the name implies the department monitors the management of treasury functions at
SBI’s foreign offices including asset liability management, investments and forex
operations.

Products and Services included here are:

• Asset Liability Management (ALM): The ALM function comprises

management of liquidity, maturity profiles of assets and liabilities and interest rate
risks at the foreign offices.
• Investments: Monitoring of investment operations of the foreign offices of
the bank is one of the principal activities of TMG. The main objectives of
investment operations at our foreign offices, apart from compliance with the
regulatory requirements of the host country, are (a) safety of the funds invested, (b)
optimisation of profits from investment operations and (c) maintenance of
liquidity. Investment operations are conducted in accordance with the investment
policy for foreign offices formulated by TMG.

The activites include appraisal of the performance of the foreign offices broad
parameters such as income earned from investment operations, composition and
size of the portfolio, performance vis-à-vis the budgeted targets and the market
value of the portfolio.

• Forex monitoring: Monitoring of forex operations of our foreign offices is

done with the objective of optimising of returns while managing the attendant
risks.
• Forex and Interest rate (Foreign Currency) derivatives: TMG also plays an
important role in structuring, marketing, facilitating execution of foreign currency
derivatives including currency options, long term rupee - foreign currency swaps,
foreign currency interest rate swaps, cross currency swaps and forward rate
agreements. Commodity hedging is one of the recent activities taken up by TMG.
• Reciprocal Lines: The department is also responsible for maintenance of
reciprocal lines with international banks.

The Portfolio Management Services Section (PMS) of State bank of India

has been set up to handle investment and regulatory related concerns of
Institutional investors functioning in the area of Social Security. The PMS forms
part of the Treasury Dept. of State Bank of India, and is based at Mumbai.

PMS was set up exclusively for management of investments of Social Security

funds and custody of the securities related thereto. In the increasingly complex
regulatory and investment environment of today, even the most sophisticated
investors are finding it difficult to address day to day investment concerns, such as

• Adherence to stated investment objectives

• Security selection quality considerations
• Conformity to policy constraints
• Investment returns
The team manning the PMS Section consists of highly experienced officers of
State Bank of India, who have the required depth of knowledge to handle large
investment portfolios and address the concern of large investors. The capabilities
of the team range from Investment Management and Custody to Information
Reporting.

OFFSHORE BANKING

State Bank of India has opened the first Offshore Banking Unit (OBU) in India at
the SEEPZ Special Economic Zone, New Bank Building, Andheri (East) Mumbai
400,096 on 17th July 2003 - another landmark in the history of India's Financial
Sector. The OBU will be deemed as an overseas branch of the Bank and undertake
the following activities:

• Raise funds in convertible foreign currency as deposits and borrowings from

Non Residents sources.
• Transact in foreign exchange with residents in India who are eligible to enter
into or undertake such transactions in terms of various Rules and Regulations as
framed under Foreign Exchange Management Act, 1999.
• Open foreign currency accounts abroad as well as with other OBUs in India
Trade in foreign currencies in the overseas market and also with banks in India
where both legs of the transactions are denominated in foreign currencies.
Provide customised loan and liability products for the benefit of clients
Maintain Special Rupee account with an Authorised Dealer in India out of the
convertible foreign exchange resources for meeting local expenses
Buy Rupees from an Authorised Dealer in India to fund the Special Rupee
Account.