SBI Definition

SBI stands for State Bank of India. It is a multinational public sector bank and financial services body based in Mumbai, Maharashtra, India. The bank was set up as Bank of Calcutta in 1806. SBI is the largest government bank in the country and also the first bank to be established. It is also the 43^rd largest bank in the world. The current CEO of SBI is Vladimir Obyedkov. In 2020, SBI reserved the 21^st rank in the Fortune Global 500 list and became the only Indian Bank to feature on the list.

Branding

• Logo: The logo of SBI and all its associate banks is a blue circle with a small cut at the bottom. This cut portrays perfection and the common man as the prime focus or center of the bank. This logo is like a blue keyhole which is followed by the word mark 'SBI'. It is believed that the blue keyhole of the bank's logo is inspired by Kankaria Lake of Ahmedabad, Gujarat, and it came from the National Institute of Design (NID). Other than this, it is also believed that the keyhole represents safety, security, and strength to the public and the white circle in the center gives a picture of the branch of the bank while the narrow line shows the narrow lanes of towns and cities. The wordmark 'SBI' usually had one standard typeface, but over the period, other typefaces were also used.
  
• Tagline: The new tagline of the bank after the merger is 'Bade Bank Ke Bade Faayde'. But before the merger of SBI, it had several taglines like:
  • Pure banking, nothing else
  • The Nation banks on us
  • A bank of the common man
  • With you - all the way

Products and Services

• Deposit Account:
  1. Savings Account: A savings bank account is an interest-bearing deposit account. In simple terms, it is an account that can be opened by anybody after depositing a minimum balance. The SBI account holders can earn an interest of up to 4% per annum on their account balance. To earn a higher rate of interest, the account holders can link their account to the MOD account. There are 5 types of savings account offered by SBI:
     • Basic savings account
     • Basic small savings account
     • Savings bank account
     • Savings account for minors
     • Savings plus account
  2. Current Account: It is the account that is provided to rich businessmen to maintain their day-to-day transactions. The current includes withdrawals, deposits, and contra transactions. It is also called a demand deposit account. There is no need for any prior notice in such accounts to withdraw or deposit the big amount. In SBI, the minimum balance required to open a current account is 10,000. The maintenance charges of the account are also very low so that the need and expectations of customers can be fulfilled. There are several types of the current account in the State Bank of India:
     • Regular current account
     • Gold current account
     • Diamond current account
     • Platinum current account
     • Power POS current account
     • Surbhi current account
• Loan:
  1. Home Loan: The interest rate of the home loan offered by SBI is 7% per annum in 2021. There are many benefits of SBI's home loan, such as no processing fees, no prepayment penalty, and flexible tenure. The bank offers its various schemes to individuals who are going to buy a ready-built, under construction or pre-owned property. Other than one can also apply for a loan for the construction, extension, renovation, and repair of the current property.
  2. Personal Loan: The personal loan provided by SBI is available at the interest rate of 9.6%, which can increase as per the type of loan availed. The maximum limit of these loans is Rs. 20 lakh. The borrower can take a personal loan from SBI for various purposes like expanding business, expenses of travelling abroad, debt consolidation, home refurbishing, medical emergency, marriage, etc. The bank offers four types of personal loans to its customers, which include:
     • SBI Pension loan
     • Xpress credit loan
     • Xpress elite
     • Pre-approved personal loan
  3. Loan against Property: The bank offers the loan against property to meet the personal expenses of its customers related to higher education, wedding, healthcare, etc. Both residential and commercial properties can be used as collateral to apply for an SBI mortgage loan. The loan is available at low EMIs and flexible tenures. Some important points about SBI loan against property are as follows:
     • One can avail the loan against property for 5 lakhs to Rs. 7.5 crores. It depends on the market value of the property against which the loan is going to be availed.
     • To get the loan, the customers' minimum monthly income must be 25,000.
     • The age limit for the loan is 18 to 70 years.
     • There is not any pre-payment/pre-closure penalty on the availed loan.
  4. Gold Loan: The applicants can get an SBI gold loan after submitting the collateral or security in the form of gold, gold ornaments, or gold coins. The collateral of the applicants is returned in the same condition after the timely repayment of the loan amount. The customers can use the amount of the gold loan to fulfil their financial needs related to education, medical bills, marriage, etc. But the applicants can't use this money for speculative purposes. The interest rates offered By SBI on its gold loan are 7.5% onwards. The process of applying for the bank's loan is hassle-free, and there is an immediate approval of the loan along with disbursal. One can get a gold loan of Rs. 20,000 to Rs. 50 lakh.
  5. Education Loan: SBI is a government bank; hence it is also focused on promoting education in the country. For this purpose, the bank offers many schemes to foreign students and domestic students. The interest rates of the education loan are not so high and have a student-centric attitude. With the help of the education loan, the students can opt for leading institutes of India as well as abroad. One can avail the maximum loan of Rs. 1.5 crores from the bank. The bank also gives some concessions to girl students. There are 5 types of schemes offered by SBI in its education loan:
     • SBI Student Loan Scheme
     • SBI Scholar Loan Scheme
     • SBI Skill Loan Scheme
     • SBI Global Ed-Vantage Scheme
     • SBI Takeover of Collateralized Education Loan Scheme
  6. Two-wheeler Loan: SBI does not charge any advance EMI on its two-wheeler loan. The interest rates of the loan are also very low, which are calculated on the basis of the daily reducing balance. The bank also gives the freedom to its customers to pay the EMI anytime during the month. This loan facility is not only available for purchasing bikes or scooty but also for moped and other two-wheeler battery-owned vehicles.
  7. Business Loan: The bank provides the service of secured and unsecured business loans to its customers as per their needs. The bank's business loan process is hassle-free with no extra charges for documentation, attractive interest rates, and flexible tenure (which can vary from 1 to 5 years) options. One can avail of a loan of 10,000 to Rs.500 crore. Other than its schemes, SBI also avails loans under various Government schemes such as PMMY, PMEGP, PSB Loans, Start-up India, and Stand-up India.
  8. Car Loan: The customers can avail the car loan from SBI at a low rate of interest, low EMIs, less paperwork, and immediate disbursement. The maximum tenure of the car loans is 7 years. In the loan, the interest rates are calculated on the basis of the daily reducing balance.
• Investment:
  1. Fixed Deposits: The FD facility provided by SBI is one the safest investment avenues of the market. There are various types of investment schemes offered by SBI to its customers under its personal finance portfolio to regular individuals and senior citizens. An FD is a secure financial instrument that gives the guarantee of return. The schemes of SBI are available with flexible tenure options with different interest rates. It can be understood as follows:
     • One can do a minimum investment of 1,000, while maximum investment has no limits.
     • The minimum tenure of the FD can be 7 days while the maximum tenure is available for 10 years.
     • The minimum interest given on the investment is 2.9%, and the maximum interest rate is 5.4%.
  2. Recurring Deposit: Recurring Deposits (RD) is a service provided by the SBI in which a customer is allowed to deposits an amount monthly instead of lump sum payment as done in FD. This service of the bank has almost similar features that are available in fixed deposits. The interest rates given to the customers in RD are similar to the bank's FD schemes. Some of the important features of SBI's recurring deposits scheme are as under:
     • The tenure of the recurring deposits is 12 to 120 months.
     • The minimum investment can be done of 100 while there is not any limit on maximum investment.
     • Premature withdrawal is permitted.
     • Nomination and inter-branch transfer are also allowed.
     • Option for auto-renewal is available.
• Cards:
  1. Credit Card: SBI credit card offers a wide range of facilities to the cardholder, such as online shopping, travel, fuel, dining, and much more. Other than these facilities, the customers also get various benefits from SBI credit cards like cashback, reward points, a welcome bonus which can be related to the category of lifestyle, travelling, shopping, etc. Some of the best SBI credit cards are:
     • SBI Card Prime
     • SBI SimplySave Credit Card
     • SBI Card Elite
     • BPCL SBI Card
     • Air India SBI Platinum Credit Card
     • Yatra SBI Card
     • Paytm SBI Card Select
  2. Debit Card: The bank offers a wide array of debit cards to fulfil the needs and sundry of all types of customers. SBI cards can be used to withdraw money from more than 1 lakh ATMs and POS terminals throughout the world. The bank permits the cardholders to do five free transactions through ATMs in a month. Other than this, the bank also offers special benefits, flexible withdrawal limits, and signature privileges such as discount vouchers, insurance, reward points on making every transaction, etc. The cardholders can use the SBI debit cards for booking train or flight tickets, movie tickets, online shopping and dining, retail expenditures, travelling, and much more. SBI gives protection to its customers' debit cards during online transactions with the help of a 2-factor authentication using Verified by Visa/MasterCard SecureCode.
• Banking:
  1. Balance Inquiry: There is a number of methods that can be used by the account holders of SBI to check their account balance. The most popular methods for balance inquiry are missed call banking and SMS banking. The customers can use them to know the account balance or to get a mini-statement. For this, they can give a missed call or send an SMS from the registered mobile number to the balance inquiry number of the bank. After it, the balance details can be getting on the phone in a few seconds. The account holder can give a missed call or send an SMS as "BAL" to the given toll-free number:
     09223766666
     To get the mini-statement of the account, the customer can give a missed call or send an SMS as "MSTMT" to the toll-free number given below:
     09223866666
     Other than the above-given methods, the account holders can also use some alternatives for the balance inquiry of their SBI's account. These ways include:
     • ATM
     • Net Banking
     • SBI Card Balance Inquiry
     • Passbook
     • Mobile Banking with the help of SBI Mobile Apps
       • SBI YONO
       • SBI Quick
       • SBI Online
       • SBI Anywhere Saral (SBI mPassbook)
  2. Mobile Banking: SBI's customers can also avail the benefits of using the mobile app of the bank to get the mobile banking facility at their fingertips. These apps include SBI YONO and BHIM SBI Pay. By using these mobile apps, customers can enjoy banking services 24/7 from anywhere through smartphones. These apps allow users to perform all the financial tasks from getting account statements to maintain the budget in check or to investing in mutual funds. Other than SBI YONO and BHIM SBI Pay mobile apps, the customers can also use SBI SMS Banking. This service can be used for the following purposes also:
     • Mini Statement
     • Bill Payment
     • DTH Recharge
     • Mobile Recharge
     • Send mCash through mobile or email ID
     • Online Nominations
     • TDS Enquiry
     • Add or Manage Beneficiary
     • Open eDeposits
     • Get/Cancel MMID, etc.
  3. Net Banking: SBI also provides the service of net banking (also called Internet or Online Banking). It gives the facility of transferring funds, accessing accounts, and balance inquiries through the internet without going to the bank. The aim of this service is to save customers' time and to provide them quality services at their homes. To avail this facility, the customers only have to apply for SBI net banking. Other than the services given above, one can also use SBI net banking for the following works:
     • NPS Payments,
     • Change login password,
     • Nomination and PAN details,
     • Account statements,
     • FD Investment,
     • Pay taxes,
     • ATM card services,
     • Sovereign Gold Bond,
     • Online locker,
     • Mobile recharges,
     • SBI Life Premium Payment, etc.
  4. Customer Care: SBI is the largest bank in India. As mentioned above, it provides a number of banking products and services, the bank also offers toll-free customer care numbers to solve queries, get feedback and complaints, answer questions, etc. The customers are free to contact these numbers if they face any issues or want to get any information. There are two toll-free numbers of the bank which are available 24/7:
     1800 11 2211
     1800 425 3800
     Other than this, SBI also provides separate toll-free customer care numbers to solve the issues related to different products and services offered by the bank. These numbers can be get from SBI's official site.
  5. IFSC Code: IFSC stands for the Indian Financial System Code. It is a unique alpha-numeric code of 11 characters which represents the banks' unique identity. From these 11 characters, the first four characters are alphabet which stands for the bank name, while the last six can be either numerical or alphabets stand for the different branches. In the middle of the bank code and branch code, a zero is included, which is constant amongst all the IFSC codes. The code is helpful in doing online fund transfers. SBI's bank code is SBIN. The branch codes for various branches of the bank can vary as per their locations. IFSC code is assigned to all SBI's branches by the RBI, the apex regulatory body in the country. It helps in making all the money transfers through NEFT, IMPS, and RTGS. This code can be seen on the chequebook and passbook issued by the bank.

Subsidiaries

SBI is able to provide this wide range of banking products and services to its customer only because of its large network of branches and overseas offices. 16 regional hubs and 57 zonal offices of SBI are spread in major cities of the nation. The bank's subsidiaries also play an important role in its wide reach to remote India. The subsidiaries of the SBI are as under:

• Domestic: SBI has more than 24,000 branches located all over India. The bank earned huge revenue of Rs. 2.005 trillion in FY 2012-13. Out of this, 95.35% of revenue was earned from domestic operations. In the accounting period, domestic operations contributed 88.37% of total profit. After the launching of the program Pradhan Mantri Jan Dhan Yojana in August 2014, SBI opened more than 3 million accounts out of which 2.1 million accounts belonged to rural areas.
• International: As per the data of 2014-15, there 191 overseas offices of SBI are located in 36 countries of the world. Among all Indian banks, SBI covers the largest part of the foreign market. Its international subsidiaries are:
  • SBI Australia
  • SBI Bangladesh
  • SBI Bahrain
  • SBI Botswana
  • SBI Canada Bank
  • SBI China
  • SBI Mauritius Ltd
  • Nepal SBI Bank Ltd
  • SBI Sri Lanka
  • SBI South Korea
  • SBI South Africa
  • SBI UK Ltd
  • SBI USA
• Former Associate Banks: In 1960, SBI bought seven regional banks which were belonged to the former Indian states. The same logo of SBI is used for these banks also, and the prefix 'State Bank of' is added to their name to show the parent bank, i.e., SBI. These acquired banks include the 'State Bank of':
  • Bikaner and Jaipur
  • Hyderabad
  • Indore
  • Mysore
  • Patiala
  • Saurashtra
  • Travancore
• Non-banking Subsidiaries: SBI has four non-banking subsidiaries, which include:
  • SBI Capital Markets Ltd
  • SBI Cards & Payments Services Pvt. Ltd
  • SBI Life Insurance Company Ltd
  • SBI Mutual Fund
• Other Service Points of SBI: As per the data of 31 March 2017, there are 59,291 ATMs have been established by SBI Group. An integrated digital banking platform was also launched by the bank in November 2017 with the name YONO.
• Yes Bank Investment: SBI holds 48.2% of the shares of Yes Bank. It is a part of RBI directed rescue deal done by RBI in March 2020.

Listing and Shareholdings

As per the data of 31 March 2017, the government has 61.23% equity shares in SBI. The largest non-promoter shareholder in the company is LIC with 8.82% shares. SBI's various shareholders are:

• Promoters, i.e., Government of India
• NRIs/OCBs/FIIs
• Banks and Insurance Companies
• Mutual Funds and UTI
• Others

SBI's equity shares are listed on the NSEI, where it is a part of the CNX Nifty and the BSE, where it is a part of the BSE SENSEX index. Its GDR is also listed on the London Stock Exchange.

Employees

SBI is among those companies in the world which have the largest human assets. As per the reports of 31 March 2021, SBI employs more than 246,652 people. Women employees share nearly 26% of the total workforce. In the data, it is also calculated that the percentage of associates, officers, and subordinates are 41.03%, 44.28%, and 14.69%, respectively. It was the mutual contribution of these employees that the company earned a huge profit of Rs. 828,350 (US$ 12,000) during the financial year 2020-2021.

Awards, Recognition, and Achievement

• In 2016, SBI Life got the honor of 'CLO Chief Learning Officer Summit India' in the category of 'Mobile learning program'.
• In 2016, SBI got Outlook Money Awards for its life insurance services.
• In 2017, WCRC awarded SBI with the Brand of the Year 2016-17 Award for its amazing Insurance services.
• In 2017, the CEO of SBI, Mr. Arijit Vasu won the 'CEO of the Year' Award given by Skoch Group.
• In 2018, SBI won the Golden Peacock Award for Risk Management.
• In 2019, SBI Life won the Gold Award at the Outlook Money Awards and became the 'Life Insurance Provider of the Year'.
• In 2019, Foxglove Awards awarded SBI with the 'Golden Award' in Best Content Marketing Launch.
• In 2020, SKOCH Award gave the 'Silver Award' to SBI for its digital technologies.
• In the same year, SBI also won the VCCircle Award and became 'Financial Services Company of the Year'.