1. Industry Analysis:
Industry trends: Indian and Global perspectives, recent happenings
Indian banking sector's health has been deteriorating in the last few quarters since borrowers
are either postponing repayments or defaulting as tight business conditions hamper growth.
State Bank of India plans to roll out ‘Lead Management System’ (LMS) in its five associate
banks to help them garner more business.
Under LMS, customers of associate banks can not only access details of products of their
respective bank from SBI’s helpline number, but they can also register for further contact by
an expert from the bank.
According to a bank statement, the expert will call the customer, resolve the doubts and
queries, and help him select a product. LMS is currently available to all SBI customers. It
offers account related information, hot-listing, tracking of ATM cards, info about products
and services.
The BSE Sensex and NSE Nifty erased half of gains due to fall in State Bank of India and
TCS. ICICI Bank, Tata Motors and Larsen & Toubro saw somewhat profit booking. But the
market breadth remained in favour of advances.
Shares of ICICI Bank was up 1.3% while that of State Bank of India declined 0.86%.
Banking, Financing, Insurance,Real Estate and Business Services make 10% of the GDP.
Global Banking Trends: The current global macro-economic situation is characterised by an
unbalanced economic recovery across advanced and emerging economies, moderation in
economic prospects in 2011, high levels of unemployment and inflationary pressures, and
elevated levels of government debt.
Competitor Analysis:
The main competitors of State Bank of India in India are Bank of India, ICICI Bank, and
Union Bank of India.
ICICI bank is the second largest private sector bank in India and has well reputation over the
industry. Increase in the number of banks will increase the rivalry since all these banks
compete for the same customers and resources. State Bank of India has to face a competitive
rivalry from all these banks and thus to plan its activities accordingly.
SBI being the government's de-facto banker has the upper hand in collecting taxes or public
investments (PPF). ICICI Bank on the other hand makes the best use of its private (largely
foreign) ownership and international presence.
SBI has had more than a century's presence in India's banking space. Thus SBI has major
share in this sector. But given the scale of fragmentation in Indian banking, credit must be
given to SBI's ability to retain the share. SBI has commanded double the share of the second
largest player in the sector. ICICI Bank on the other hand, has been the pioneer of retail
banking in India. SBI has commanded double the share of the second largest player in the
sector. ICICI Bank on the other hand, has been the pioneer of retail banking in India.

2. SBI has maintained NIMs in excess of 2.6% over the past decade. On the contrary, that of
ICICI has crossed 2.5% just once in the past 8 years. Thus the former has concentrated on
high margin business.
Comparig the sales per share of SBI over ICICI are 665.4%.The net sales are about 387.4%.
Also the total revenues are 265.6% times. Where as gross profit is about 158.6%.
Company Analysis:
Company description :
State Bank of India (SBI) is the leading commercial bank in India, offering services such
as retail banking, commercial banking, international banking and treasury
operations. It also offers services like mutual funds and insurance, Credit cards,
Consumer banking, corporate banking, finance and insurance, investment banking,
mortgage loans, private banking and wealth management.
Evolution of SBI:
The State Bank of India has its roots in since 1806 with the establishment of bank of Calcutta.
Later as years went by bank received its charter and it was redesigned as Bank of Bengal.
Furthermore Bank of Bombay, Bank of Madras evolved in 1840 and 1843 respectively.
All three Presidency banks were incorporated as joint stock companies. The Presidency banks
amalgamated on 27 January 1921, and the reorganized banking entity took as its
name Imperial Bank of India. Pursuant to the provisions of the State Bank of India Act
(1955), the Reserve Bank of India, which is India's central bank, acquired a controlling
interest in the Imperial Bank of India. On 30 April 1955 the Imperial Bank of India became
the State Bank of India.
In the year 1959 SBI took over 8 state owned banks It is headquartered in Mumbai, India and
The Corporate Centre is in Mumbai and 14 Local Head Offices and 57 Zonal Offices are
located at important cities spread throughout the country. It employs about 179,205 people.
State Bank of India has an extensive administrative structure to oversee the large network of
branches in India and abroad. The Corporate Centre is in Mumbai and 14 Local Head Offices

3. and 57 Zonal Offices are located at important cities spread throughout the country. State
Bank of India has 157 foreign offices in 32 countries across the globe.
State Bank of India has seven associate banks and State Bank of Saurashtra merged into SBI
on August 2008
and now the bank has six associate banks. They are;
State 1. Bank of Bikaner and Jaipur
2. State Bank of Hyderabad
3. State Bank of Indore
4. State Bank of Mysore
5. State Bank of Patiala
6. State Bank of Travancore
Board of Directors:
 Pratap Chaudhari ( Chairman)
He joined SBI as probationary officer 37 years ago. Gradually became the Deputy
Managing Director prior to taking the position as chairman. He is also credited with
the merger of State Bank of Saurashtra in 2008.The low profile banker was in charge
of SBI’s International Banking business.
 Hemant G. Contractor (Managing Director)
Hemant G. Contractor is Managing Director, Group Executive (International
Banking), Whole-Time Director of State Bank Of India since 7, April 2011. Prior to
this which he was Deputy Managing Director & Chief Financial Officer. He has
background in Treasury, Credit and Corporate Banking, besides overseas experience
in Bahrain. He was earlier posted as Deputy Managing Director & Group Executive
(Corporate Banking) and Chief General Manager, Chandigarh Circle.
 Kumar, A. Krishna
Shri. A. Krishna Kumar is Managing Director, Group Executive - National Banking,
Whole-Time Director of State Bank Of India., since 7, April 2011. Prior to this
appointment, he was Deputy Managing Director (Information Technology). He has
domain in the areas of Credit, Operations and IT, besides overseas experience at
Chicago, USA. He has earlier worked as Chief General Manager, Mid Corporate
Group and Chief General Manager, Patna Circle.
 Choksi Dileep
Shri. Dileep C. Choksi is Non-Executive Director of State Bank Of India., since 24,
June 2008. He is a Director re-elected by the Shareholders for three years. He is a
practising Chartered Accountant since 36 years and is the Chief Mentor of C3
Advisors P. Ltd. and promoter of Universal Trustees P. Ltd. and director in several
companies including World Tax Service India P. Ltd. He is also a qualified Cost
Accountant and Lawyer and was a in establishing Deloitte, of which he was the Joint

4. Managing Partner. He has been a visiting faculty at Bankers Training College,
Reserve Bank of India and Jamnalal Bajaj Institute of Management Studies, Mumbai.
 Amin, Deepak
Shri. Deepak Ishwarbhai Amin is Non-Executive Director of State Bank of India. He
is a Director nominated by the Central Government u/s 19(d) of SBI Act, w.e.f. 24th
January 2012, for a period of three years. Shri Amin holds a B.Tech. in Computer
Science & Engineering from IIT, Mumbai and MS in Computer Science from
University of Rhode Island, USA. He is the co-founder and CEO of Covelix, Inc, a
Seattle and India based international software consulting. Also the founder and CEO
of vJungle, Inc, a web services software infrastructure company, which was acquired
by Streamserve, Inc.
 Gokarn, Subir
Dr. Subir Vithal Gokarn is Non-Executive Director - Nominee of Reserve Bank of
India of State Bank of India., with effect from August 4, 2011. He is Deputy
Governor, Reserve Bank of India.
 Iyengar, Parthasarthy
Shri. Parthasarathy Iyengar is Non-Executive Director of State Bank of India., since
25, June 2011. Shri. Iyengar holds Post graduate degrees in Engineering and
Management (Management Information Systems) from USA. He has more than 25
years of experience in the field of Information Technology in U.S and India. He is
Vice President and Distinguished Analyst in Gartner, a world IT research and
advisory services entity and currently its Regional Research Director in India.
 Malhotra, Rashpal
Shri. Rashpal Malhotra is Non-Executive Director of State Bank Of India., since 10,
May 2011. He is the Founder Director of Centre for Research in Rural and Industrial
Development (CRRID), Chandigarh and presently its Executive Vice-Chairman.
Earlier, Shri Malhotra was a Director on the Boards of Allahabad Bank and Bank of
India.
 Mittal, D.
Shri. D. K. Mittal is Non-Executive Director - Nominee of GOI of State Bank of India
with effect from August 03, 2011. He is is Secretary, Financial Services, Ministry of
Finance, Govt. of India
 Mohapatra, Jyoti
Shri. Jyoti Bhushan Mohapatra is Workman Employee Director of State Bank of
India., effective November 21, 2011. He is Special Assistant, State Bank of India.

5.  Sundaram, D.
Shri. D. Sundaram is Non-Executive Director of State Bank of India., since 13,
January 2009. He is Director re-elected by the Shareholders u/s 19(c) of SBI Act,
w.e.f 25th June 2011, for a period of three years. He is Vice Chairman and Managing
Director of TVS Capital Funds Limited. He is a professionally qualified Accountant
(FICWA) and carries a experience in the area of Finance and Accounting. He held
many important positions in Hindustan Unilever Ltd. (HUL) group as Vice-Chairman
& CFO, Corporate Accountant, Commercial Manager and Treasurer, Finance
Member, TOMCO Integration Team, and Finance Director, Brooke Bond Lipton
India Ltd. He had also held various positions in Unilever Ltd., London as Commercial
Officer for Africa and Middle East and Senior Vice President – Finance, Central and
Middle East Group.
 Venkatachalam, S.
Shri. S. Venkatachalam is Non-Executive Director of State Bank of India., since 24,
June 2008. He is a Director re-elected by the Shareholders u/s 19(c) of SBI Act, w.e.f.
25th June 2011, for three years. He is a practising Chartered Accountant and was
employed with Citi Group and Citibank NA India Organisation in the Senior
Management Cadre for a period of 31 years in various capacities.
Various sectors inSBI:
Personal Banking:
State Bank of India offers a wide range of services in the Personal Banking Segment which are indexed here.
SBI Term Deposits SBI Loan For Pensioners
SBI Recurring Deposits Loan Against Mortgage Of Property
SBI Housing Loan Loan Against Shares & Debentures
SBI Car Loan Rent Plus Scheme
SBI Educational Loan Medi-Plus Scheme
SBI Personal Loan Rates Of Interest
Experience a whole new world of banking at our newly opened Personal Banking Branches
(PBBs)- often dubbed boutique branches by others. Customer friendly knowledgeable staff
will cater to your financial requirements with speed and efficiency. Do visit one and find out
for yourself.

6. Agricultural/Rural
State Bank of India caters to the needs of agriculturists and landless agricultural
labourers through a network of 8750 rural and semi-urban branches. Apart from the branches,
there are 428 Agricultural Development Branches which also cater to agriculturists. They
have portfolio of 64,000 crs in agricultural advances covering around 80 lac accounts.
Our 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. Special
agri specialists also have been appointed to handle different agri projects.
Agriculture Business 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.
With a collective effort of Govt. and the people, we are set forth to continue growth in the
rural and agri development and become the ‘Banker to Every Indian’.
NRI SERVICES
State Bank of India is the bank of choice for Indians wherever they live. With its vast
network of over 14,500 domestic branches, 53 dedicated NRI Branches in India, 173 Foreign
Offices in 34 countries, Correspondent Banking relations with 475 global banks and tie up
with 26 Exchange Houses and 5 Banks across Middle East, NRIs can enjoy “anywhere –
anytime” banking facilities.
The product suite for NRIs ranges from Bank Deposits, Loans and Remittances to
Investments, Online Equity Trading, Structured Products, Mutual Funds and Insurance.
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 173
offices/branches in 33 countries as on 05th Mar 2012, spread over all time zones. The network
is augmented by a cluster of Overseas and NRI branches within India and correspondent links
with over 483 banks, the world over. Bank's Joint Ventures and Subsidiaries abroad further
underline the Bank's international presence.

7. 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.
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 bank has a network of 163 offices/branches in 33 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 483 leading banks of the world. SBI’s offshore joint
ventures and subsidiaries enhance its global stature.
CORPORATE BANKING
SBI is a one shop providing financial products / services of a wide range for large , medium
and small customers both domestic and international.
Working Capital Financing
extended both as Fund based and Non-Fund based facilities to
Corporate, Partnership firms, Proprietary concerns
Capital finance extended to all segments of industries and services sector
such as IT
Term Loans : To support capital expenditures for setting up new ventures.
Deferred Payment Guarantees: To support purchase of capital equipments.
Corporate Loans: For a variety of business related purposes to corporates.
Export Credit: To Corporates / Non Corporates
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.
GOVERNMENT BUSINESS:
State Bank of India's linkage with Government business is widespread. No wonder that out
of 9315 branches in India, about 7000 branches are conducting Government Business. The
large network of our branches provides easy access to the common man to deposit the
following Government dues and pension payments.
SERVICES
Listed on the left are Services, SBI offers to its customers.
 Domestic treasury

8.  Broking services
 Revised service charges
 Atm service
 Internet banking
 E-pay
 E-rail
 Rbieft
 Safe deposit locker
 Micr codes
 Foreign inward remittances
Financial performance of the company:
The total share capital of SBI has increased at a greater rate in 2012 than that in previous
years. The cash and balances with RBI has decreased to a as compared to previous year.
The general trend of net profit was seen that it had a growth till ’10 but saw a dip in ’11
however it rose back again in ’12. It was 9,166.05, 8,264.52 and 11,707.29 respectively.
Operating Expenses have reduced to some extent. The deposits and borrowings have reduced.
Also the gross value of investments in India has decreased by 0.91 times and that outside
India have changed very meagrely. The net profit has increased 1.25 times as compared to
previous years.
SWOT Analysis:
Strengths
SBI is the largest bank in India in terms of market share, revenue and assets.
As per recent data the bank has more than 13,000 outlets and 25,000 ATM centres
in the current FY2012.
SBI has the first mover advantage in commercial banking service and inclination towards
new age banking services.
Weakness
Lack of proper technology driven services, traditional approach in spite of modernization
when compared to private banks.
Employees show reluctance to solve issues quickly due to higher job security and customers’
waiting period is long when compared to private banks
A great expense on rented buildings, employees salaries.
Many Govt accounts are shifted to private banks for ease of operations.
Opportunities
SBI’s merger with five more banks namely State Bank of Hyderebad, State bank of Patiala,
State bank of Bikaber and Jaipur, State of bank of Travancore and State bank of Mysore are
in approval stage will result in expansion of market share.
SBI is planning to expand and invest in international operations due to good inflow of money
from Asian Market
The bank has scope to develop its technologies and software to improve customer relation.

9. Threats
Reduction in market share due to competition from banks like ICICI, HDFC, AXIS Bank.
FDIs allowed in banking sector is increased to 49% , this is a major threat to SBI as people
tend to switch to foreign banks for better facilities and technologies in banking service.
Customers shifting to private banks due to better facilitation.
Net profit of the year has decline from 9166.05 in the year FY 2010 to 7,370.35 in the year
FY2011
Shareholding and Liquidity:
Reserve Bank of India is the largest shareholder in the bank with 59.7% stake
followed by overseas investors including GDrs with 19.78% stake. Indian financial
institutions held 12.3% while Indian public held just 8.2% of stock. RBI is the monetary
authority and having majority share holding. Now the government is rectifying the above
error by transferring RBI’s holding to itself.
TRANSFORMATION JOURNEY IN STATE BANK OF INDIA
The State Bank of India, the country’s oldest Bank and a premier in terms of balance sheet
size, number of branches, market capitalization and profits is today going through a
momentous phase of Change and Transformation – the two hundred year old Public sector
behemoth is today stirring out of its Public Sector legacy and moving with an agility to give
the Private and Foreign Banks a run for their money.
The bank is entering into many new businesses with strategic tie ups – Pension Funds,
General Insurance, Custodial Services, Private Equity, Mobile Banking, Point of Sale
Merchant Acquisition, Advisory Services, structured products etc – each one of these
initiatives having a huge potential for growth.
It is also focusing at the top end of the market, on whole sale banking capabilities to provide
India’s growing mid / large Corporate with a complete array of products and services. It is
consolidating its global treasury operations and entering into structured products and
derivative instruments. Today, the Bank is the largest provider of infrastructure debt and the
largest arranger of external commercial borrowings in the country. It is the only Indian bank
to feature in the Fortune 500 list.
The Bank is changing outdated front and back end processes to modern customer friendly
processes to help improve the total customer experience. With about 8500 of its own 10000
branches and another 5100 branches of its Associate Banks already networked, today it offers
the largest banking network to the Indian customer. The Bank is also in the process of
providing complete payment solution to its clientele with its over 21000 ATMs, and other
electronic channels such as Internet banking, debit cards, mobile banking, etc.
With four national level Apex Training Colleges and 54 learning Centres spread all over the
country the Bank is continuously engaged in skill enhancement of its employees. Some of the
training programes are attended by bankers from banks in other countries.
The bank is also looking at opportunities to grow in size in India as well as Internationally. It
presently has 173 foreign offices in 33 countries across the globe. It has also 7 Subsidiaries in

10. India – SBI Capital Markets, SBICAP Securities, SBI DFHI, SBI Factors, SBI Life and SBI
Cards - forming a formidable group in the Indian Banking scenario. It is in the process of
raising capital for its growth and also consolidating its various holdings.
Throughout all this change, the Bank is also attempting to change old mindsets, attitudes and
take all employees together on this exciting road to Transformation. In a recently concluded
mass internal communication programme termed ‘Parivartan’ the Bank rolled out over 3300
two day workshops across the country and covered over 130,000 employees in a period of
100 days using about 400 Trainers, to drive home the message of Change and inclusiveness.
The workshops fired the imagination of the employees with some other banks in India as well
as other Public Sector Organizations seeking to emulate the programme.
TARGET of SBI
For the year 2012-13, SBI is targeting 25 per cent and 22 per cent growth in deposits and
advances respectively.
As per rough estimates, the growth was not as high as expected during the last financial year,
at 18 per cent and 15-16 per cent, mainly due to the general economic scenario, as said by Mr
Krishna.
As SBI had surplus liquidity, meeting credit targets for the current financial year would be a
problem, he added.
During last year, the growth of the SME and farm sector portfolios was in the range of 18 per
cent to 22 per cent, while mid corporate and retail segments showed ‘sluggish' growth.
Sources:
www.moneycontrol.com
www.reuters.com
www.sbi.co.in