State Bank of India or SBI, as it is commonly known, is India’s largest bank amongst both private as well as public sector banks. It is a government owned multinational, public sector bank and financial services company which is headquartered at Mumbai, the financial capital of India.
The State Bank of India finds its roots in the Bank of Calcutta which was founded in 1806, which also makes it Indian Subcontinent’s oldest commercial bank. The Bank of Calcutta merged into the Bank of Madras and the Bank of Bombay to form the Imperial Bank of India. In 1955, the bank was renamed to the State Bank of India and its control was taken over by the Government of India when the Reserve Bank of India bought a 60% stake in it.
In a first ever large scaled consolidation in the Indian banking space, State Bank of India was merged with its associate banks (State Bank of Bikaner & Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala and State Bank of Travancore) to make SBI one of the 50 largest banks of the world.
It now has a total market capitalisation of INR 33 trillion, 278,000 employees,420 million customers, 24,000+ branches and 59,000+ ATMs. It also has 198 offices in 37 other countries along with 301 correspondents in 72 other countries. Apart from its five associate banks which merged with SBI on April 1, 2017, SBI also has the following non-banking subsidiaries which are SBI Capital Markets Ltd, SBI Funds Management Pvt Ltd, SBI Factors & Commercial Services Pvt Ltd, SBI Cards & Payments Services Pvt. Ltd. (SBICPSL), SBI DFHI Ltd, SBI Life Insurance Company Limited and SBI General Insurance. In March 2001, SBI (with 74% of the total capital), joined hands with BNP Paribas (with 26% of the remaining capital), to form a joint venture life insurance company named SBI Life Insurance company Ltd. In 2004, SBI DFHI (Discount and Finance House of India) was founded with its headquarters in Mumbai.