SBI: History, Latest Updates, Milestones, Subsidiaries & Share Price

INTRODUCTION

State Bank of India (SBI), established in 1806, is the largest and oldest public sector bank in India. With its headquarters in Mumbai, SBI plays a pivotal role in the country's financial sector. As a government-owned institution, SBI offers a wide array of banking and financial services, including retail and corporate banking, investment banking, insurance, and wealth management. With a vast network of branches and ATMs across India and a growing global presence, SBI serves as a cornerstone of the Indian banking industry, providing essential financial services to individuals, businesses, and institutions.

SBI MOVES IN 2024

February 2024

• SBI will be signing a LOC with the World Bank for $165 million to support grid connected rooftop solar projects .

• SBI collaborated with Flywire to digitize its international education payments for Indian Students. This integration will enable seamless transactions in Indian Rupees.

• The news about SBI's sale of Yes Bank's stakes as a block deal is denied by both SBI and Yes Bank.

• SBI share price surge has led to increase in its market capitalization above Rs. 600000 crores.

• SBI will be acquiring 100% stake in SBICAP Ventures owned by SBI Capital Markets at a price of Rs.708 crore.

• SBI has reported a drop in net profit due to higher wage provisions and others.

• Since inception in 2018, SBI has issued an electoral bond scheme in 30 tranches worth Rs. 16518 crores.

• SBI Mutual Fund has announced the launching of SBI Energy Opportunities Fund scheme.

• SBI Life has bought KIMS 11.49 lakh shares worth Rs.239 crore through open market transactions.

• LIC has raised their shareholding in SBI cards from 4.99% to 5.02% 

• SBI General Insurance has partnered with IIT Madras to develop a breast cancer treatment device as a part of CSR initiative.

January 2024

• SBI is planning to down sell half of its loan exposure from Adani Group's Ganga Expressway project worth Rs.11000  crore .

• Black Opal group, a NBFC company has raised $3 million from SBI and HDFC Bank to enhance and expand their prop-fintech platform.

• SBI Mutual Fund has launched SBI Nifty 50 Equal Weight Index Fund Scheme which is an open-ended index fund which will be replicating the Nifty 50 equal weight index.

• SBI Cards has reported a net profit of Rs. 549 crores in Q3FY2024 which is an 8% increase in net profit when compared to previous year.

• SBI General Insurance in December 2023 , reported an increase of 50% in its premium in December with a growth of 23% .

December 2023

• RBI has issued its List of Domestic Systemically Important Banks (D-SIBs) in which SBI has moved from bucket 3 to bucket 4 which will be applicable from April 2025.

• SBI has acquired 6.35% of shares from Canpac Trends Private Limited worth Rs.49.99 crore.

• SBI has raised $250 million through  private placement of green bonds.

• SBI Mutual Fund has got approval from RBI to acquire 10% of paid-up share capital .

• SBI Mutual Fund has launched a NFO under close ended debt fund scheme with a fixed income plan.

• State Bank of India (SBI) to add 300 branches across India this year (2023), reaching 23,000 domestically. Digital expansion and partnerships with business correspondents also on the agenda. Focus remains on strengthening ties with existing franchises.

• The Amrit Kalash and Amrit Mahotsav Fixed Deposits offered by State Bank of India and IDBI Bank will come to an end on August 15, 2023.

• State Bank of India (SBI) plans to raise Customer Service Points (CSPs) from 79,000 to 1 lakh by fiscal year-end, enhancing its Financial Inclusion (FI) efforts. Initiatives include doorstep banking through handheld devices and IRIS scan utility for improved product accessibility.

• In a remarkable financial achievement, the net profit of the company soared by a remarkable 83%, reaching Rs.16,695 crore in the quarter ending March 2023, compared to Rs.9,114 crore during the same period a year ago. Furthermore, the net profit for the entire fiscal year 2022-2023 (FY23) has impressively surpassed the Rs.50,000-crore milestone.

Evolution of SBI: From Past to Present:

• Early 1800s: Bank of Calcutta established, later becoming Bank of Bengal.

• 1921: Merger of presidency banks forms Imperial Bank of India.

• 1955: Nationalization leads to SBI's creation, pioneering state-owned banking.

• 2008: Merger with associate banks bolsters its reach.

• 2017: Further consolidation with Bharatiya Mahila Bank promotes financial inclusion.

• 21st century: Embracing digitalization with mobile apps, YONO platform, and online services.

• Global expansion through subsidiaries and overseas branches.

• Focus on financial inclusion, social impact, and economic growth.

• Present: SBI continues to adapt, innovate, and contribute to India's financial landscape.
  

Timeline of SBI:

Inside SBI Group: Exploring Subsidiary Ventures 

State Bank Of India:

Corporate actions: SBI, India's largest lender, declared an extraordinary dividend of Rs 11.30 per share (1,130%) as per regulatory guidelines, aligning with its May 18, 2023 Central Board meeting decision for the year's financial period that concluded on March 31, 2023.

Main News: SBI offers customers in Manipur a 12-month moratorium on payments, excluding NPAs as of May 3, 2023, showcasing support during challenging times.

SBI Life Insurance Company Limited (SBI-LIFE):

Corporate actions: In the preceding 12 months, SBI Life Insurance Company Ltd. has announced an equity dividend of Rs 2.50 per share. Considering the prevailing share price of Rs 1284.45, this equates to a dividend yield of 0.19%.

Main News: SBI Life Insurance Company has issued an intimation regarding the 23rd Annual General Meeting.

SBI Cards and Payment Services Ltd.

Corporate actions: In the fiscal year concluding in March 2023, SBI Cards & Payment Services has announced a 25.00% equity dividend, equating to Rs 2.5 per share. With the current share price standing at Rs 830.10, this corresponds to a dividend yield of 0.3%.

Main News: SBI Cards and Payment Services appoints Abhijit Chakravorty as new MD and CEO, effective from August 16, 2023.

SBI Capital Market Limited (SBICAP):

Main News: SBI Capital Markets Ltd. (SBICAPS) appoints Shri Rajay Kumar Sinha as new MD and CEO.

SBI Fund Management Limited:

Main News: Brickwork Ratings has confirmed and then removed the rating for the Bank Loan Facilities worth Rs. 40,300 Crores of SBI Funds Management Limited.

SBI Pension Funds Private Limited (SBIPF):

Main News: SBI Pension Fund holds the top position among 10 managers, overseeing Rs.3,59,040.81 crores AUM and commanding 37% market share by May 31, 2023.

SBI General Insurance Company Limited:

Main News: State Bank of India collaborates with SBI General Insurance to offer personal accident cover to more than 7 million account holders nationwide.

SBI Subsidiaries NSE/BSE: Current Share Prices 

Achievements & Milestone:

CONCLUSION

State Bank of India (SBI) stands as a cornerstone of India's financial landscape, tracing its roots to the early 19th century. Its evolution from presidency banks to a modern, diversified institution showcases its adaptability and commitment. With a global presence, innovative digital solutions, and a history of driving financial inclusion, SBI remains at the forefront of banking. Through strategic mergers, technological advancements, and steadfast dedication to serving the nation, SBI has become an integral part of India's economic growth story. As it continues to navigate challenges and seize opportunities, SBI's journey reflects its enduring commitment to shaping the future of banking.

Frequently Asked Questions:

1. What is the current price of SBI

      You can check SBI’s share price on Enrich Money's stock analysis page.

2. In which year was SBI founded?

SBI was founded in 1955.

3. Which are the major subsidiaries of SBI?

- SBI Life Insurance Company Ltd

- SBI Cards and Payment Services Ltd

- SBI Capital Market Limited 

4. Who was the Founding Chairman of SBI?

The Founding Chairman of SBI was John Mathai.

5. What is the revenue of SBI?

The revenue of SBI 4.73 lakh crores INR.

 

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