Full Form of SBI

Full Form of SBI – State Bank of India

The Full form of SBI stands for STATE BANK OF INDIA. The State Bank of India is a public sector financial institution and multinational company. The bank holds 23 percent of market share in the banking industry in terms of asset base and 25 percent share in loans and deposit segments, making it the largest statutory financial services organization in India.

Vision

The Vision of SBI is to adopt the role of most preferred and trusted financial services providers worldwide. They believe in customers first and take customer satisfaction with utmost priority. They want to be a leader in the banking industry and provide a wide range of banking services to their personal and commercial entities.

Full-form-of-SBI (Main)

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History

  • The bank was founded as the bank of Calcutta in the period of 1806 to offer general banking services to the Indians.
  • In 1809, the bank was renamed as the Bank of Bengal after the royal charter issuance.
  • In 1840, the Bank of Bombay was incorporated, followed by the incorporation of the Bank of Madras in 1843.
  • The combination of these three banks was together regarded as the presidency banks.
  • Private subscribers and provincial governments owned each presidency bank.
  • These banks got exclusive rights for issuance of currency through the nation, which was then taken over by India’s government in the period of 1861.
  • In 1921, the three banks were brought in together and merged. It got renamed the Imperial bank of India.
  • As time went by and with progress in the banking business, India’s Imperial bank transformed into the largest commercial enterprise and entity throughout the nation.
  • During the period of 1955, India’s government and the reserve bank of India took the joint ownership of the Imperial bank of India.
  • The Imperial Bank of India was then retitled as the State bank of India.
  • With the provisions of the Subsidiary bank act, those entities that were controlled by the princely states later became subsidiaries of the bank.
  • In the period of 2007-08, the government of India acquired the remaining stake of the State bank of India from the Reserve bank of India with the intent of elimination of potential conflicts of interests.
  • The Reserve bank of India, which was incorporated with the role of Central bank, later took over the role of banking supervision and regulation.

Structure

Structure of SBI

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  1. The board of directors broadly governs the SBI presided by the chairman and managing director.
  2. The government of India appoints both the chairman and managing director.
  3. There are several bifurcations of the banking business.
  4. Each division is headed by the managing director, who then reports to the chairman.
  5. The global Human resource, chief financial officer, and the chief vigilant officer also report to the chairman.
  6. To each managing director, the deputy managing directors of respective departments are aligned within the managing director to facilitate streamlined banking business.
  7. The current chairman of SBI is Mr. Rajnish Kumar. Mr. P.K. Gupta, Mr. Dinesh Kumar Khara, and My Arijit Basu are the current Managing Director of SBI.
  8. Normally, the Chairman and vice-chairman are stated in the Indian government’s SBI board in consultation with the Reserve Bank of India.
  9. Two managing directors are chosen by the central board of SBI with approval from the Indian government.
  10. The private shareholders elect six directors.
  11. One director each is nominated by the government of India and Reserve Bank of India.
  12. Eight directors are nominated and appointed by India’s government in consultations and recommendations of the Reserve Bank of India.

Functions of SBI

Functions-of-SBI

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  1. It provides a wide range of commercial banking services.
  2. It accepts deposits from the general public and institutional depositors.
  3. It offers loans to the entities that SBI believes capable of servicing loans.
  4. It additionally sells and purchases gold.
  5. It takes up the role of agent for the cooperative bank and the reserve bank of India.
  6. It plays the role of a government’s bank and a banker’s bank.
  7. It underwrites issues of the stocks and bonds for its institutional clients.
  8. It draws and buys bills of exchangeBills Of ExchangeBills of exchange are negotiable instruments that contain an order to pay a certain amount to a particular person within a stipulated period of time. The bill of exchange is issued by the creditor to the debtor when the debtor owes money for goods or services.read more.
  9. It assumes the role of administrator and trustee for estates.
  10. However, the bank is not authorized to lend funds corresponding to stocks for more than six months.
  11. It is not entitled to purchase any immovable properties, but it could purchase only offices for official business purposes.
  12. It does not have the authority to rediscount the bills. The bills should consist of two good signatures.
  13. It cannot rediscount loans against securities.
  14. It cannot lend additional funds to corporate entities and individuals beyond the slated thresholds.

Services of SBI

Services-of-SBI

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  1. State bank of India offers a variety of commercial and personal banking services.
  2. It offers to open accounts in public provident fund schemes as well as in the Sukanya Samriddhi scheme.
  3. It provides Inward foreign remittances.
  4. It has expanded its line of business in broking and Demat services.
  5. It provides ATM services across India and in different global locations.
  6. It additionally provides Locker services.
  7. To be in line with digital banking, it now provides internet banking and e-wallet services for individuals.
  8. It has the facilities of E-pay and E-rail as well.
  9. It provides real-time grossing settlements and national electronic fund transfers as well.
  10. It provides facilities of loans, overdrafts, and working capital loans to facilitate business.
  11. It also offers specially designed, and customized salary accounts for corporates.
  12. It additionally provides home loans, personal loans, consumer durable loans, education loans, and loans against mutual fundsMutual FundsA mutual fund is an investment fund that investors professionally manage by pooling money from multiple investors to initiate investment in securities individually held to provide greater diversification, long term gains and lower level of risks.read more and securities.
  13. It offers wealth management services to select clients and institutional investorsInstitutional InvestorsInstitutional investors are entities that pool money from a variety of investors and individuals to create a large sum that is then handed to investment managers who invest it in a variety of assets, shares, and securities. Banks, NBFCs, mutual funds, pension funds, and hedge funds are all examples.read more.
  14. It provides 2 complimentary lounges access every quarter to support lifestyle banking.

Conclusion

The state bank of India is a public sector financial institution in India. Beginning from Calcutta, it has expanded to vast geographies making itself into a global bank and multinational entity. As per the current growth plans of SBI and to retain its market share, it has made inroads in digital banking and financial transformations.

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This has been a guide to the full form of SBI (State Bank of India) and its definition. Here we discuss the history, services, functions, and structure of SBI. You may refer to the following articles to learn more about finance –