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The foundation day of SBI is celebrated on 1st July every year. Here’s a look at the unique journey of India’s largest public sector lender.
State Bank of India (SBI) has emerged as the largest public sector banking financial services company with a rich heritage of over 200 years. With more than 44 million customers across the country SBI has become the most trusted bank. SBI was the only bank from India to feature in the Fortune Global 500 list of the world’s largest companies in 2020.
The foundation day of SBI is celebrated on 1st July every year. Here’s a look at the unique journey of India’s largest public sector lender.
The State Bank of India was first established as the Bank of Calcutta in Calcutta on 2 June 1806. In 1809, the bank received its charter and was redesignated as the Bank of Bengal. The bank was the first joint stock bank in British India sponsored by the Government of Bengal. Then in 1840, the Bank of Bombay and in 1843, the Bank of Madras followed the Bank of Bengal.
The three banks continued to offer modern banking services in the country until they merged as the Imperial Bank of India in 1921.
When India achieved independence, the Imperial Bank had a capital base (including reserves) of Rs 11.85 crore. It had deposits and advances of Rs 275.14 crore and Rs 72.94 crore respectively. It had a network of 172 branches and over 200 sub-offices across the country.
Later, the All India Rural Credit Survey Committee recommended the creation of a state-cooperative and state-sponsored bank to replace the Imperial Bank of India.
Thus, in May 1995, an Act was passed in Parliament and the State Bank of India was established on 1 July 1955.
In 1959, the State Bank of India (Subsidiary Banks) Act was passed which allowed the bank to take over eight former State-affiliated banks as its subsidiaries, which were later designated as SBI associate banks.
By the end of 1987, SBI sponsored 30 Rural Regional Banks covering 66 backward and sub-banked districts in the country.
In 1998, SBI began its venture with a joint venture agreement with the American financial services giant, General Electric Capital Corporation (GE Capital).
SBI signed an agreement with Cardiff SA in 2001 for life insurance business. Later in the same year it launched the SBI International card and the SBI Global Card for Indians traveling abroad.
In 2010, State Bank of India had a debit card base of over 70 million. The chip-enhanced and PIN-based Platinum Debit Card also launched in the same year.
In 2015, State Bank of India launched RuPay Platinum debit card in partnership with National Payments Corporation of India (NPCI). In 2021, the bank crossed Rs 5 lakh crore in home loan segment.
(Editorial: Anand Singha)
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