3 Review(s)

State Bank of India (SBI) traces its roots to the Bank of Calcutta (later renamed as Bank of Bengal) which operated from the early 19th century marking the advent of modern banking in the Indian subcontinent. Shortly thereafter two similar banks, Bank of Bombay and Bank of Madras, were also founded. In 1921, the three banks were merged to create an all-India bank, the Imperial Bank of India (IBI), to extend banking facilities and render the money resources of India more accessible to the country’s trade and commerce. As the largest commercial bank of India then, IBI was nationalized by the Government of India to create SBI on 1 July 1955 for providing increased banking facilities in the rural areas. Aligning its policy with national objectives, SBI took up development banking activities, viz. branch expansion, financing of SSIs, agriculture and exports on a scale never attempted before.The first four volumes of this series cover the journey of SBI from its inception till 1980.This volume like the earlier ones is based on primary documents and archival materials available in SBI and at other financial archives and covers the period 1981-96. It examines the bank’s pioneering role in venturing into new activities to subserve national objectives and priorities. The onset of the disintermediation process in the financial sector in the mid-1980s saw SBI adapt itself to the changing nature of customer preferences and launch new products and services for their benefit. Numerous non-banking subsidiaries appeared in rapid succession: SBI Capital Markets Ltd. (1986), SBI Mutual Fund (1987), SBI Factors and Commercial Services Pvt. Ltd. (1991) and SBI Funds Management Ltd. (1992). More such subsidiaries were created in later years. As the pioneer in the use of computer systems among banks in India, SBI progressively extended its use too. It introduced the microprocessor based computer systems and ledger posting machines (LPMs) selectively at large and medium-sized branches in the 1970s to improve customer service and operational efficiency. Total branch computerization (TBC) was only a matter of time and the first fully computerized branch of SBI was opened in 1992.Following up on the restructuring of its organizational framework in the 1970s, SBI initiated several organizational changes in 1995 to meet the challenges posed by the forces of competition, deregulation and globalization. The objective was to provide a focused delivery system with appropriate specialist inputs and distinct profit goals. Its training system too was reoriented to instil greater systems awareness and appreciation among its staff. The history of SBI across two centuries is closely interwoven with the country’s economic fabric and the Bank continues to play a major role in India’s growth story.