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State Bank of India





State Bank of India (SBI) is the largest public sector bank in India, with over 22,000 branches and 58,000 ATMs across the country. It was founded in 1806 as the Bank of Calcutta, and has since grown to become a leading financial institution in India, offering a wide range of banking and financial services to its customers.


State Bank of India (SBI) in its modern avatar was formed in 1955 through the amalgamation of eight state-owned banks. These banks were the Bank of Bombay, the Bank of Baroda, the Bank of Madras, the Bank of Mysore, the Comilla Banking Corporation, the Hindustan Commercial Bank, the Indian Bank, and the Bank of Indore. This process of amalgamation was initiated by the Indian government as a way to consolidate the country's banking sector and create a more efficient and effective national banking system.


The amalgamation of these eight banks into SBI was carried out through a series of steps, starting with the formation of the State Bank of India Act in 1955. This act provided the legal framework for the merger, and outlined the terms and conditions under which the banks would be brought together.


Next, the government established a new company, the State Bank of India, which would serve as the holding company for the eight banks that were to be amalgamated. This company was owned by the government, and its primary purpose was to manage the merger and oversee the operations of the new bank.


Finally, the eight banks were merged into the State Bank of India, with each of the original banks becoming a subsidiary of the new holding company. This process was completed in 1959, and the State Bank of India has been operating as a single entity since then.


Merger of State Bank of India in 2017


In 2017, State Bank of India (SBI) underwent a merger with five of its associate banks and the Bharatiya Mahila Bank. This merger was approved by the Indian government and was aimed at strengthening the bank's operations and improving its financial performance.

The five associate banks that were merged into SBI were the State Bank of Bikaner and Jaipur, the State Bank of Hyderabad, the State Bank of Mysore, the State Bank of Patiala, and the State Bank of Travancore. These banks were all owned by the government and were previously functioning as subsidiaries of SBI.


The merger was carried out through a series of steps, starting with the formation of a holding company, the State Bank of India, which would oversee the operations of the merged entity. Next, the five associate banks and the Bharatiya Mahila Bank were merged into the holding company, with each of the original banks becoming a subsidiary of the new entity.


The merger was completed in April 2017, and the State Bank of India began operating as a single entity with a stronger balance sheet and a larger network of branches and ATMs. This merger was seen as a positive development for the bank, as it allowed it to better serve its customers and compete more effectively in the marketplace.





One of the key strengths of SBI is its vast network of branches and ATMs, which enables it to serve a large and diverse customer base across the country. In addition to its traditional banking services, such as deposits, loans, and credit cards, SBI also offers a range of specialized services, such as investment banking, insurance, and wealth management.

In recent years, SBI has been at the forefront of digital innovation in the banking industry, with a focus on providing convenient and accessible banking services through its mobile app and online platforms. This has helped the bank to attract and retain customers, particularly among the younger generation.


State Bank of India's role in financial inclusion in India

State Bank of India (SBI) plays an important role in promoting financial inclusion in India. Financial inclusion refers to the provision of affordable and accessible financial services to underserved communities, such as low-income households and rural areas.


SBI has implemented a number of initiatives to promote financial inclusion in India. For example, the bank has set up special branches in rural areas, known as "financial inclusion branches," which are dedicated to providing banking services to underserved communities. These branches offer a range of basic banking services, such as deposit accounts, small loans, and insurance products, at affordable prices.


In addition, SBI has partnered with the Indian government to provide basic bank accounts, known as Jan Dhan accounts, to individuals who do not have access to formal banking services. These accounts are available at no cost to the account holder and provide a simple and convenient way for people to save money and access other financial services.

Overall, SBI's efforts to promote financial inclusion in India have helped to improve access to banking services for millions of people, and have contributed to the development of the country's financial sector.

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