The State Bank of India (State Bank of India (SBI) is a Fortune 500 company with a heritage and legacy of over 200 years. It is the largest Indian bank with 1/4th market share, and serves over 45 crore customers through its network of over 22,000 branches, 62,617 ATMs/ADWMs, 71,968 BC outlets.
The origin of SBI goes back to the first decade of the 19th century with the establishment of the Bank of Calcutta on June 2, 1806 in Calcutta. Three years later, the bank received its charter and was re-designed as the Bank of Bengal in 1809.
The Bank of Bengal was one of three Presidency banks, the other two being the Bank of Bombay (incorporated on 15 April 1840) and the Bank of Madras (incorporated on 1 July 1843). All three Presidency banks were incorporated as joint stock companies and were the result of royal charters.
SBI, then Bank of Bengal, Bank of Bombay and Bank of Madras received the exclusive right to issue paper currency till 1861 when, with the Paper Currency Act, the right was taken over by the Government. These banks were amalgamated as the Imperial Bank of India on January 27, 1921.
The Imperial Bank of India remained a joint-stock company but without government participation. Pursuant to the provisions of the State Bank of India Act of 1955, India's central bank, the Reserve Bank of India acquired a controlling interest in the Imperial Bank of India.
The Imperial Bank during the three and a half decades of its existence recorded an impressive growth in terms of offices, reserves, deposits, investments and advances, the increases in some cases amounting to more than six-fold.
When India attained independence, the Imperial Bank, now SBI, had a capital base (including reserves) of Rs 11.85 crore, deposits and advances of Rs 275.14 crore and Rs 72.94 crore respectively and a network of 172 branches and more than 200 sub offices extending all over the country.
On July 1, 1955, the Imperial Bank of India became the State Bank of India. In 2008, the Government of India acquired the Reserve Bank of India's stake in SBI so as to remove any conflict of interest because the RBI is the country's banking regulatory authority.
Over the years, SBI has acquired several local banks in rescues. Bank of Bihar, National Bank of Lahore, Krishnaram Baldeo Bank, Bank of Cochin are some of the lenders that were acquired by SBI.
As of 2023, the SBI has diversified businesses through its various subsidiaries i.e SBI General Insurance, SBI Life Insurance, SBI Mutual Fund, SBI Card, etc. It has spread its presence globally and operates across time zones through 229 offices in 31 foreign countries.
SBI has seen a huge transformation over the decades from traditional banking to online banking and doorstep banking. SBI share price has also jumped from Rs 23 to Rs 600 in the last 23 years.