Corporate Accounting
CIA 3
Aaron Thomas 2120901
ADITYA RAJ V 2120938
S.No Topic
1 Introduction
2 Registered Office
3 Place of Business
4 Management
5 Line of Business
6 Important Milestones
7 Information from the Financial Statements
8 Overall Analysis of the Company
1
Introduction
The State Bank of India
State Bank of India is an Indian public sector bank. The bank originated in the
year 1806, as the Bank of Calcutta. It is the 43rd largest bank in the world
employing more than 2,40,000 people across all of its branches. It is the largest
Indian bank serving more than 45 crore customers with a quarter of the market
share. The core values of the bank include- service, ethics, politeness,
transparency as well as sustainability. The bank focuses on providing simple,
innovative, and responsive financial solutions. The SBI is serving the needs of
the nation through timely intervention, raising loans for the government, and
financing major industrial projects.
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Registered Office
The company has its headquarters in Mumbai.
State Bank Bhavan,
Corporate Centre, ,Madame Cama Road,
Mumbai
Maharashtra
400021
Places of business
The bank has a diversified number of businesses offering a variety of products
and services. With its main headquarters in Mumbai in the state of
Maharashtra, the company has around 22,200 branches in India and 229
branches spread across 31 countries globally.
Management
1. Dinesh Kumar Khara – Chairman
2. Ashwani Bhatia - Managing Director Corporate Banking, Global Market
3. Ashwini Kumar Tewari- Managing Director International Banking,
Technology and Subsidiaries
4. Sreenivasulu Shetty Managing Director Retail and Development Banking
5. J Swaminathan - Managing Director Risk, Compliance and Stresses
Assets Resolution Group
6. Natarajan Sundar - Deputy Managing Director & Chief Credit Officer
7. Alok Kumar Choudhary - Deputy Managing Director (Finance)
8. Soma Sankara Prasad - Deputy Managing Director, Compliance,
Corporate Centre
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9. Ravindra Pandey - Deputy Managing Director & Chief Information
Officer
10.Rana Ashutosh Kumar Singh - Strategy & Chief Digital Officer
11.Saloni Narayan - Deputy Managing Director Retail Business
12.R Viswanathan - Deputy Managing Director Internal Audit
13.B Venugopal - Shareholder Director
14.Debasish Panda - Government Nominee Director
15.Ganesh Natarajan - Shareholder Director
16.Chandan Sinha - Government Nominee Director
Line of business of SBI
The State Bank of India offers a variety of services to more than 45 crore
customers. Some of the most prominent services offered include:
1. Deposit account
a) Savings account
SBI offers 5 types of savings account. Account can also link it to
MOD account to earn higher interest.
b) Current account
SBI offers 8 types of current accounts with low maintenance charges
to satisfy customer’s needs and expectations. SBI current account can
be opened with a minimum balance of Rs. 10,000.
2. Loans
The bank offers various types of loans such as home loan, personal loan,
gold loan, education loan etc.
3. Investments – Fixed or Recurring deposits
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4. Cards - credit, debit, and green remit card.
5. Banking
a) Balance enquiry- Customers can save time by giving a missed call
from their mobile to an SBI toll free number
b) Net banking
Enables its retail banking customers to operate their accounts from
anywhere, removing the restrictions imposed by geography and time. It's
a platform that enables the customers to carry out their banking activities
from their desktop, aided by the power and convenience of the internet.
c) Mobile banking
SBI's 'NO Queue' app offers booking of a virtual token from any place
and book a ticket at their nearest branch. This also has a real time status
notification feature hence customers can avoid long queues especially
during the pandemic where social distancing becomes important.
6. Online Trading
SBI in alliance with SBI Cap Securities Limited offers an online trading
account which allows trading from the comfort of home or office through
the internet. It is a 3-in-1 account which is an integrated platform of savings
bank account, demat account and an online trading account.
7. National Pension System (NPS)
It is a contribution pension system introduced by the government as a part
of pension sector reforms to provide social security to all citizens of India.
8. Foreign Inward Remittance
Customer can send remittances to India for credit to his/her account with the
bank or for any family member in a convenient way with SBI's foreign
offices network and correspondent banking arrangements, mentioned the
lender. The facilities of remittances are available worldwide.
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Important milestones of SBI
1955
- On 1st July State Bank of India was constituted under the State Bank of
India Act 1955, for the purpose of taking over the business of the
Imperial Bank of India (founded in 1921)
1959
- In September 1959, SBI (Subsidiary Bank) Act was passed.
In October 1959, State Bank of Hyderabad become the first subsidiary of
SBI.
1962
- A scheme for amalgamation of the Bank of Aundh Ltd., was also
approved.
- On 20th August 1962, the Unit Bank Ltd. Chennai was taken over by
the Bank.
1963
- In October, an SBI branch in London started to serve The Indian High
Commission, thereby taking over a function till then performed by the
office of RBI.
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1972
- A merchant banking division was set up in the central office to cater
to promotional needs of the corporate sector.
1977
- SBI introduces the Perennial Pension Plan
1980
- Bank introduces the Cash Certificate Scheme
1982
- The Non-Resident Investment Cell was set up, which had streamlined
the working operations of the non-resident investment sections.
1983
- SBI launched self-employment scheme, for providing employment
opportunities to educated unemployed youth.
1984
- The bank provides need-based habitation assistance to large and
medium sick industrial units.
1985
- During the year, company set up a data bank of sick units available for
taken over by healthy units.
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- With effect from 26th August, the Bank of Cochin Ltd with 108
branches was also amalgamated with the Bank.
1986
- On 1st August a new subsidiary named SBI Capital Market was
functioning independently, took up leasing business and certain other
new services.
1987
- Up to the end of the year the bank had sponsored 30 Regional Rural
Banks covering 66 backward and underbanked districts in the country
1988
- During the year bank undertook a project called ‘UPTECH’ to direct
and guide programmes aimed at facilitating technology upgradation.
- ‘Stree Shakthi’ scheme to develop entrepreneurship among woman was
launched. Several concessions in respect of margin and rate of interest
had been built into the package.
- On 20th September 1988, the bank inaugurated `SBINET,' an integrated
communication project aimed at improving customer service, operational
efficiency and administrative convenience.
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1989
- Launched Magnum Monthly Income Scheme 1989
- During the same period SBI in association with Morgan Stanley Asset
Management firm of the United States launched the India Magnum Fund.
1990
-Launched Magnum Tax Service Scheme 1990.
-New products launched during the year included a Regular Income
Scheme, offering an assured return more than 12%
- The bank introduced an agricultural credit card, known as SBI Green
Card to give greater liquidity and flexibility to farmers in procuring
agricultural inputs.
1991
- During February the bank set up a new subsidiary called the SBI Factors
and Commercial Serviced Pvt. Ltd. for rendering factoring services to the
industrial and commercial units in Western India.
1992
-The bank sponsored 30 RRBs (Regional rural bank) with a network of
3189 offices covering 102 backward and under banked districts of the
country.
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-SBI introduced `Stock invest' scheme.
-Introduced `Gyan Jyoti' that replaced earlier education loan schemes
and aids students pursuing higher studies.
-NRI branches equipped with State-of-the-art technology was set up at
Mumbai and Delhi to serve the needs of NRI residents.
1993
During the year as a part of its overseas expansion the bank established
representative office in Tashkent.
1998
- State Bank of India kick-started its credit card business on 1 July
1998 by signing two joint ventures with GE Capital.
- Signed an exclusive agreement with Visa International for payment
cards in India.
1999
- State Bank of India (SBI) has bagged the mandate to syndicate the $
120 million loan for the National Thermal Power Corporation
(NTPC).
- The State Bank of India (SBI) proposed to take up the life insurance
and general insurance business once the sector is opened.
10
- SBI proposes to introduce a value-added service for cardholders
whereby the credit card can also be used as an ATM card.
2000
- The Bank launched the "Metal (Gold) Loan Scheme" in Coimbatore.
- SBI is also forming a subsidiary called the SBI Gold and Precious
Metals Private Ltd. with 50 per cent equity participation.
- State Bank of India and the Exim Bank of the US have signed a
memorandum of understanding, involving $500 million, to support
the small and medium-sized Indian companies to purchase US goods
and services.
- The Bank has launched an international credit card for doctors, the
first of its kind in the country, offering facilities including special
discounts on medical equipment and personal loans from GE
countrywide.
- State Bank of India Mutual Fund has launched the Magnum Gilt
Fund, dedicated to investing in government securities.
2001
- The Bank has signed an MoU with Cardif S.A. for the bank's life
insurance business.
- On 3 July 2001 there was the launch of the SBI International card and
the SBI Global Card for global travellers in India. These cards would
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be accepted at over 20 million Visa outlets worldwide and one lakh
outlets in India.
2002
- To reduce risk and develop a transparent and active debt market in
general and government securities market in particular, the Clearing
Corporation of India Ltd. has been set up in Mumbai with the Bank as
the chief promoter.
2003
-State Bank of India (SBI) and Maruti Udyog Ltd have announced a joint
initiative aimed at making car finance affordable to lower middle-class
customers
- SBI introduces IT upgradation plan with the assistance of KPMG
- Introduction of two new schemes - SBI Advantage Card to the bank's
fixed deposit customers and SBI International Card for its home loan
borrowers.
- Launch of a new credit appraisal system targeting the small and
medium enterprises (SME) for loans up to Rs 25 lakh
- Receives RBI licence to set up offshore banking units (OBUs) in special
economic zones (SEZs)
2004
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-SBI sets up India's first drive-in ATM in Hyderabad
-SBI unveils floating ATM
-GAIL ties up SBI for e-banking system
-Signs a Memorandum of Understanding (MoU) under which the bank
will provide term loans to farmers for purchasing capital inputs from Jain
Irrigation Systems Ltd (JISL)
-Unveils Vishwa Yatra foreign travel card, a prepaid card which offers
the traveller a convenient and secure way to carry cash
2005
-State Bank of India and 8 associate banks have entered into an
agreement with Bharat Petroleum Corporation Ltd (BPCL) for enhancing
card usage at fuel stations
-SBI launches new mortgage loan scheme for traders
2006
-SBI teams up with Nihilent to unveil feedback system
-SBI signed a memorandum of understanding with Small Industries
Development Bank of India for co-financing small and medium
enterprises
2008
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- State Bank of India has rolled out a micro insurance scheme 'Grameen
Shakti', for the Self Help Group (SHG) members.
- On 30 June 2008 launched two new home loan products called as SBI
Easy Home Loan and SBI Advantage Home Loan.
2010
- State Bank of India, with a debit card base of over 70 million,
comprising SBI Cash Plus, SBI Gold Debit Card and SBI Yuva Card, has
added chip and PIN-based Platinum Debit Card.
- State Bank of India (SBI) has signed a pact with Unique Identification
Authority of India (UIDAI) to work as a registrar for the UID registration
of residents. It has become the first bank to take up registration work for
the UIDAI project.
2011
-State Bank of India, with a debit card base of over 70 million,
comprising SBI Cash Plus, SBI Gold Debit Card and SBI Yuva Card, has
added chip and PIN-based Platinum Debit Card.
2012
- State Bank of India signed a Preliminary Non-Binding Memorandum of
Understanding with Russian Direct Investment Fund (RDIF), to facilitate
bilateral economic trade between Russia and India aimed at exploring
investment opportunities in both the countries.
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- SBI launched virtual debit cards to check online fraud and promote
ecommerce
2013
- State Bank of India (SBI) expands its presence with the launch of its
second branch in China.
-SBI introduces smart pre-paid card for students, blue collar workers
-SBI launches Tech Learning Centres (TLCs) for customers
-State Bank of India has launched a RuPay Platinum debit card in
association with National Payment Corporation of India (NPCI)
-SBI introduces online facility for overdraft against FDs
2015
-SBI partners with Amazon -SBI entered a MoU with PayPal for
facilitating cross-border transactions
-SBI launched an initiative to provide doorstep services and expedite
home loans application process
2016
-SBI opens first branch in South Korea.
- Launch of a new home loan plan for executives.
-SBI launches debit card-less instant money transfer facility.
-SBI in talks with Microsoft to accelerate digital banking in rural areas.
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2017
-Creation of wholly owned subsidiary to manage real estate
-SBI signs $274 million agreement with German Investment Bank
KfW to finance affordable housing.
2018
Doorstep banking for senior citizens above age of 70 and differently
able customers.
2019
-YONO cash two step cash withdrawal process with OTP generation.
2020
-State Bank of India jointly launched a cybercrime awareness
campaign during the height of the pandemic where cashless
transactions were taking place.
2021
-SME Loan relief measures that ultimately led to a record breach of
the 60000 mark in Sensex.
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Part – B
Information from the Financial Statements:
1) Total Fixed Assets:
As on 31st March 2020 - 38,439.28 Crores
As on 31st March 2021 - 38,419.24 Crores
2) Total Current Assets:
As on 31st March 2020 - 2,51,097.01 Crores
As on 31st March 2021 - 3,43,038.71 Crores
3) Total Long-Term Liabilities:
As on 31st March 2020 - 37,19,386.49 Crores
As on 31st March 2021 - 41,70,470.31 Crores
4) Shareholders’ Fund:
As on 31st March 2020 - 232,007.43 Crores
As on 31st March 2021 - 253,875.19 Crores
5) Total External Liabilities:
As on 31st March 2020 - 35,56,276.38 Crores
As on 31st March 2021 - 40,98,574.78 Crores
6) Net Profit for the year ended 31st March 2021:
As on 31st March 2020 - 18,176.83 Crores
As on 31st March 2021 - 24,279.72 Crores
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7) Dividend:
As on 31st March 2020 - 0.00
As on 31st March 2021- Total Dividend = 3,569.84 Crores (2.60 pershare)
8) Current Market Price of the Share – Rs. 487.00
9) Current Market Capitalisation - $ 58.32 Billion
Overall Analysis of the Company
The company is performing really well. There is a steady increase in the profits
of the company as compared to previous years. We can observe that in the year
2018 the company had incurred net loss. But from the year 2019 in which the
company earned a net profit of Rs. 3,069.07 Crores there has been a steady
increase in the profits being earned and in the financial year ended 2021 the
company earned profits of Rs. 24,279.72 Crores.
State Bank of India (SBI) is India’s most trusted and most popular bank
according to a survey conducted by Brand Finance, a business valuation and
strategic consultancy headquartered in London.
On the trust charts, SBI is followed by HDFC Bank and Central Bank of India
whereas on the popularity charts, ICICI Bank and HDFC Bank take the second
and third spots respectively. “Consumer loyalty stems from consistent focus on
being customer centric
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References
https://www.business-standard.com/article/companies/sbi-tops-
trust-and-popularity-charts-117092101374_1.html
https://www.moneycontrol.com/stocks/company_info/
print_main.php
https://www.moneycontrol.com/financials/statebankindia/
balance-sheetVI/SBI
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