State Bank of India

17PGP
Akshay L Kale 17PGP062
17PGP
17PGP
17PGP
Introduction
• SBI, with more than 200 years of history is the largest commercial bank in India.

• Largest Bank in terms of branches, deposits, customers as well as employees

• Head quarter, corporate center: Mumbai

• It’s ranked 232nd on the Fortune global 500 list of the world's biggest corporations as of 2016.

• SBI is all set to enter Top 50 Global Banks list

• RBI has the major share holder of the bank with 59.7 % stake and

• Arundhati Bhattacharya is the current chairman of SBI.

• Managing Asia’s largest ATM network.

History of SBI
• Origination of SBI goes back to eighteen century with the establishment of Bank of
Calcutta on 2nd June, 1806.

• Later, the bank received its charter was renamed to Bank of Bengal, the first joint stock of
British India.

• Bank of Bombay and Bank of Madras were next to follow in the list of presidency bank.

• In 1921, these banks were merged to form Imperia Bank of India.

• 1st July 1955, the Imperial bank of India became the State Bank

of India and was nationalized.

Associate Banks
 SWOT ANALYSIS
Strengths: Weakness:
Brand Name and Market Leader
Hierarchical Management Structure
Diverse Portfolio
Highest Non Performing Assets
Wide Distribution Network

Opportunities: Threats:
Global Extension
Private and MNC Banks.
Corporate growth and demand
Competition in Retail segments.
Rural India
Changing Banking Environment
• Since 1990,financial reforms such as dilution of government ownership in nationalized
bank ,RBI deregulated the interest rate and banks could fix their own lending and
deposits rate.
• Due to liberalization private banks and foreign banks such as ICICI,HDFC and Standard
Chartered Bank ,Citibank respectively increased their footprint
• The newly introduced banks brought array of products such as remote banking, internet
banking, ATM network etc.
• Offering Anytime ,Anywhere Banking to lure more customers
• The customer were provided with the best branch experience-no more queues, best
designed waiting area, best talent hired to serve customers
• Introduction of the relationship banking – cross selling of the financial products and
increasing customer and their loyalty
Implication
• Failed to adapt with the changing technology.

• Lost large chunks of customers due to their failure in assessing customer demands.

• Since the best talent were hired by commercial banks the service and innovative
productivity decreased for SBI

• Even having largest network across country ,they couldn’t take advantage to provide
customer oriented service and lure customers
Vision & Transformation
• O.P. Bhatt believes SBI was the bank of every Indiana and thus bank have responsibility of
every Indian.
• Best Customer Oriented and Most tech-Savvy bank of the country & the last the Great
bank.
• Increase the market share by 0.25% every quarter.
• Gathered inputs from employees, consultant and made them worried about bank’s
condition but at the same time excited about its transformation.
• Stopped the technological roll out for almost 3 months and resolved the bugs in the
system
• Held Ambey Valley conclave with MDs and DMDs which led to 14 points transformation
agenda along 3 broad parameters:

Business Enabling People

Initiatives Initiatives Initiatives
People Initiatives
• Implemented new programme “ Parivartan”, a 2 day programme to build awareness around the
need for the change.

• Parivartan brought new energy across the bank customers and employees and brought more
involvement and pride.

• Citizen SBI campaign was initiated to affect the employees core value system with the objective
to provide them with inner fulfillment.

• Introduction of various employee recognition schemes like “Best Employer of Month”

• Top performers and their families were sent to Oversea trip.

Enabling & Business Initiatives
• OP Bhatt and his team focused on upgrading business processes, risk management, performance
management, technology, incentives, etc.

• CBS technology was rolled out by July 2008 and all SBI branches were on CBS and thus technology was
used for the development and efficient working.

• Operating process and network business process were reengineered for effective decision making.

• Introduction of service desk internal website which tracks the record of customer details and their
queries in order to resolve them timely manner.

• “SMS unhappy” service was launched to record the customer grievances and their resolution were
done within 4 hours.
Recommendations
• Global expansion –opening foreign branches which will increase its operating and
customized products for them will help lure customers

• More focus on untapped potential of rural banking and corporate banking

• Customer focused service-quick opening bank account system, home banking services,
easy technology based facilities