Sbi Organisational Report

1. Organization Description

State Bank of India is an Indian multinational, public sector banking and financial services company. As of 2016, it has assets of around 29 trillion. (SBI: Annual report, 2015-2016)

Company Facts:

(SBI: Annual report, 2015-2016)

With its headquarters in Mumbai, SBI (established in 1955) originated from the Imperial Bank of India which was a merger of Bank of Madras, Bank of Bombay and Bank of Calcutta. Initially, the Reserve Bank of India held a 60% stake. The Government took over its stake in 2008. SBI also acquired the Bank of Bihar and National Bank of Lahore amongst many others.

The equity shares of SBI are traded on both the NSE and BSE in India. The shareholding pattern is as given in the table below. The highest stake is held by the President of India (60.18%). Other major shareholders include Life Insurance Corporation of India and The Bank of New York Mellon. It’s Global Depository Receipts (GDRs) are listed on the London Stock Exchange.

Shareholding Pattern:

(SBI: Annual report, 2015-2016)

1.1 Financial Situation

SBI, in 2016 had a turnover of close to 1.918 trillion rupees. Its net profit was 99.5 billion rupees. SBI’s profit and loss statements for the past 4 years can be seen in the table below.

Income Statement:

(Moneycontrol: Dion Global Solutions Limited)

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Balance Sheet as per Mar ’16:

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(SBI: Annual report, 2015-2016)

As can be seen, the total debt is 25,12,07,19,549 and total Assets are 29,79,89,76,419.

1.2 Organizational Environment

SBI has 14 regional hubs and 57 zonal offices located in important cities in India.

Domestic Market: In India alone, SBI has 16,400 branches (SBI: Annual report, 2015-2016). In 2014, under the Jan Dhan Yojana, SBI opened over 3 million accounts, which included about 2.1 million in the rural areas.

International Market: SBI has 198 Foreign Offices in 37 countries as of FY2-16 Vs 191 in FY2015 which service the needs of the bank's foreign customers. It also has 75 branches r sub offices as of FY2016 Vs 69 as of FY2015 (SBI: Annual report, 2015-2016). It opened 2 new branches in the UK in 2016. It has 119 offices in East and South Asia, 1 in Australia, 12 in the Middle East, 26 in Africa, 19 in Europe, 20 in North America and 1 in South America (SBI: Annual report, 2015-2016).

SBI includes services like:

Personal Banking: Term Deposits, Recurring Deposits, SBI Home Loan, SBI Car Loan, SBI Education Loan, SBI Loan to Pensioners, Loan against Shares/Debentures, Agricultural Loans (SBI: Annual report, 2015-2016).

Anytime Channels: ATMs, SWAYAM: Barcode based Passbook Printing Kiosks, Internet Banking, Digital Banking – “sbiINTOUCH”, Mobile Banking, State Bank Buddy (Wallet), Wealth Management and many more (SBI: Annual report, 2015-2016). They also provide Industrial Loans.

Rural Banking: e.g. KCC_ATM_RuPay Cards (SBI: Annual report, 2015-2016)

SBI Pay (UPI): Unified Payment Interface integrates different banking activities onto a single application or website. It lets the user perform tasks such as transferring money from one account to another using virtual addresses or other methods such as by using the IFSC code and account number.

SBI has introduced a new UPI called SBI pay which allows peer-to-peer transactions, presently implemented through an app for mobile devices. In the future, SBI Pay hopes to be implemented using the Aadhar and mobile number. The transactions are free of charge but present only on Android devices as of now. It can be used by people who are not SBI customers as well.

The number of times SBI Pay has been installed is between 1,000,000 and 5,000,000 as per the additional information provided by Google play.

SBI Buddy: SBI Buddy is a mobile wallet provided by SBI. It is a semi-closed wallet. A semi-closed wallet is a wallet that can be used for transactions for goods and services at specific places and cannot be used for transactions such as withdrawals.

SBI Buddy was released in August 2015 as a competitor to Paytm. It provides services such as wallet-to-wallet transfer, transfers to accounts, recharges and payment of bills and also shopping at certain places. Buddy can be used even if the user does not have an SBI account. Transactions can be done to anyone through phone numbers.

A comparison of Buddy Vs other forms of cashless payment methods (BHIM, Paytm, UPI, or SBI Buddy: Which is the best payment wallet app to download in India?, 2017):

As can be seen Paytm is clearly leading in number of installs by a very big margin which is of concern to SBI.

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Image source: (SBI: Annual report, 2015-2016)