TERM PAPER

OF

FINANCIAL MANAGEMENT

TOPIC-STATE BANK OF INDIA

SUBMITTED TO: SUBMITTED BY:

ANUSHITTAL MAM KARUNA LUTHRA R.NO.RR1903B50

REG.NO.10907272

TABLE OF CONTENTS

SERIAL NO

DESCRIPTION PAGE NO

1 Acknowledgement 2 State Bank Of India-Introduction3 Company profile4 History of the Company 5 Management of State Bank Of India6 Company background7 Dividends declared8 Position of the Company Relative to

Industry 9 Change in the Share Price of the Company 10 Balance sheet of the company11 Profit and loss account of the company12 Capital structure 13 Financial performance-profits and dividends14 Hierarchical structure of the company15 Financial statements16 Liquidity position of the company17 Liquidity facilities18 Credit Rating of the Company 19 IPO Issues Made by the Company 20 Articles of the company21 Conclusion

ACKNOWLEDGEMENT

First of all thanks to almighty God who gave me courage and confidence hence I

completed my term paper. I would like to express my gratitude for the helpful

comments and suggestions by my teacher.

Most importantly I would like to thank my course in charge Miss. Anushittal Sinha

for her supervision and support in accomplishment of my study about the topic. Her

critical commentary on work has played a major role in both the content and

presentation of my discussion and arguments about the term paper and I would thank

my parents who supported me all along the study and friends for their help in making

of this term paper.

I have extended my appreciation to the several sources which provided various kinds of

knowledge base and support to me. I would also like to thank my classmates who

helped me in times in completing the study about the given topic.

KARUNA LUTHRA

STATE BANK OF INDIA

INTRODUCTION • The State Bank of India is the largest commercial bank in India in terms of profits, assets, deposits, branches and employees.

• SBI plans to add another 1,000 branches this year with a view to increase its presence in new centres, which will take the total number of branches to13,000.

• State Bank of India and Macquarie Group launched the Macquarie-SBI Infrastructure Fund (MSIF),which will invest in infrastructure projects in India.

• State Bank of India has raised USD 100 million via senior debt fixed rate bonds.

• SBI, IAG insurance JV is expected to commence commercial operations in the first half of the calendar year 2010 subject to final approvals fromIRDA.

• State Bank of India, which enjoys the largest overseas presence among local lenders, will be opening 23 more branches abroad by March 2010.

• Net Income and PAT of the bank are expected to grow at a CAGR of 17% & 15% over FY08 to FY11E.

COMPANY PROFILE

State Bank of India is the nation's largest commercial bank. SBI along with its associate banks operate more than 14,000 branches within India. State Bank of India has more than 50 offices in nearly 35 other countries, including multiple locations in the US, Canada, and Nigeria. The bank has other units devoted to capital markets, fund management, factoring and commercial services and brokerage services.

HISTORY

STATE BANK OF INDIA

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 undertaking and business of the Imperial Bank of India. The Imperial Bank of India was founded in 1921 under the Imperial Bank of India Act 1920. The Bank transacts general banking business of every description including, foreign exchange, merchant banking and mutual funds. 1959 - On September State Bank of India (Subsidiary Bank) Act was passed. On October State Bank of Hyderabad become the first subsidiary of SBI. 2000 - The Bank has embarked upon the expansion of its ATM network in the twin cities of Hyderabad and Secunderfabad .The Bank has become the first government owned financial institution to join the rank of companies declaring interim dividend. The Bank has proposed to come out with an issue under private placement of unsecured, non-convertible, subordinated bonds in the nature of promissory notes of Rs 1 lakh each aggregating Rs 600 crores with an option to retain oversubscription of up to Rs 40 crores.

The Bank launched the Metal (Gold) Loan Scheme in Coimbatore. This is the third scheme to be introduced by SBI. 2002 - In order 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.

2009 - State Bank of India yesterday slashed its benchmark lending rate by half a percentage point to 11.75 per cent. The Benchmark Prime Lending Rate (BPLR) was revised down by 50 basis points with effect from June 29, SBI informed the Bombay Stock Exchange. This move would benefit home, car and corporate loan customers. - State Bank of India on June 30 launched two new home loan products called as SBI Easy Home Loan and SBI Advantage Home Loan, with zero processing fees for both waived off till September 30. While SBI Easy Home is for loans amount up to Rs 30-lakh while the SBI Advantage Home is for loans above Rs 30-lakh, a press release issued here said. - State Bank of India, entered into an agreement with the government of Gujarat to create a fund of Rs 5,000 crore for investing in equity of infrastructure projects. 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 to its bouquet on March 26.

Management – SBI

Name Designation

S K Bhattacharyya Managing Director

Ashok Jhunjhunwala Director

S Venkatachalam Director

Deva Nand Balodhi Director

Shyamala Gopinath Director

Name Designation

R Sridharan Managing Director

Dileep C Choksi Director

D Sundaram Director

Vasantha Bharucha Director

Company Background - State Bank of India

Industry Name Finance - Banks - Public SectorHouse Name SBI GroupCollaborative Country Name N.A.Joint Sector Name N.A.Year Of Incorporation 1955Year Of Commercial Production N.A.

Regd. Office Address. State Bank Bhavan, Central Office

District MumbaiState MaharashtraPin Code 400021

Tel. No. 022-22830535,022-22883888Fax No. 022-22855348Email : investor.complaints@sbi.co.in Internet : http://www.sbi.co.inAuditorsDagliya & Co.

Company Status N.A.

RegistrarsName Datamatrics Financial Software & Services Ltd.Address Plot No. A 16 & 17, Part B Cross Lane, MIDC, Marol, Mumbai - 400093, Maharashtra.Tel. No. : Fax No. :Email : N.A. Internet : N.A.

Dividends Declared

AnnouncementDate

EffectiveDate

Dividend Type Dividend (%) Remarks

25-01-10 05-02-10 Interim 100.00 -11-05-09 10-06-09 Final 290.00 -02-05-08 29-05-08 Final 215.00 -09-05-07 13-06-07 Final 140.00 -10-05-06 19-06-06 Final 140.00 -20-05-05 17-06-05 Final 125.00 -

Position of company in relation to industry

Last Price Market Cap.(Rs. cr.)

Net InterestIncome

Net Profit Total Assets

SBI 2,297.15 145,842.07 63,788.43 9,121.24 964,432.08

PNB 1,029.85 32,471.43 19,326.16 3,090.88 246,918.62

Bank of Baroda 708.25 25,888.66 16,698.34 3,058.33 227,406.73

Bank of India 381.95 20,087.13 16,347.36 3,007.35 225,501.75

Canara Bank 428.35 17,562.35 18,751.96 3,021.43 219,645.80

Union Bank 303.80 15,345.48 11,889.38 1,726.55 160,975.51

Indian Bank 222.00 9,540.89 7,857.06 1,554.99 84,121.74

IDBI Bank 125.40 9,089.77 11,631.62 858.53 172,402.33

Oriental Bank 347.40 8,703.75 8,856.47 905.42 112,582.58

Corporation Ban 541.55 7,767.99 7,294.60 1,170.25 86,905.80

Current share price of state bank of india

Price InformationOpen 2305High 2315.9Low 2273.1Previous Close 2297.15Average Price 2296.43Total Traded Quantity 1339762Turnover in Rs.Lakhs 30766.752 week high price 250052 week low price 1219.45Face Value 10

Value at Risk (VaR)Security VAR 5.62Index VAR -VAR Margin 7.5Extreme Loss Rate 5Adhoc Margin -Applicable Margin Rate 12.5

Security-wise Delivery Position3MAY2010Quantity Traded 1316089Deliverable Quantity(Gross across client level)

516764

% Deliverable Qty to Traded Quantity 39.27

Balance sheet of state bank of india

Mar '05 Mar '06 Mar '07 Mar '08 Mar '09

Capital and Liabilities:

Total Share Capital 526.30 526.30 526.30 631.47 634.88

Equity Share Capital 526.30 526.30 526.30 631.47 634.88

Share Application Money 0.00 0.00 0.00 0.00 0.00

Preference Share Capital 0.00 0.00 0.00 0.00 0.00

Reserves 23,545.84 27,117.79 30,772.26 48,401.19 57,312.82

Revaluation Reserves 0.00 0.00 0.00 0.00 0.00

Net Worth 24,072.14 27,644.09 31,298.56 49,032.66 57,947.70

Deposits 367,047.53 380,046.06 435,521.09 537,403.94 742,073.13

Borrowings 19,184.31 30,641.24 39,703.34 51,727.41 53,713.68

Total Debt 386,231.84 410,687.30 475,224.43 589,131.35 795,786.81

Other Liabilities & Provisions 49,578.89 55,538.17 60,042.26 83,362.30 110,697.57

Total Liabilities 459,882.87 493,869.56 566,565.25 721,526.31 964,432.08

Mar '05 Mar '06 Mar '07 Mar '08 Mar '09

Assets

Cash & Balances with RBI 16,810.33 21,652.70 29,076.43 51,534.62 55,546.17

Balance with Banks, Money at Call 22,511.77 22,907.30 22,892.27 15,931.72 48,857.63

Advances 202,374.45 261,641.53 337,336.49 416,768.20 542,503.20

Investments 197,097.91 162,534.24 149,148.88 189,501.27 275,953.96

Gross Block 6,691.09 7,424.84 8,061.92 8,988.35 10,403.06

Accumulated Depreciation 4,114.67 4,751.73 5,385.01 5,849.13 6,828.65

Net Block 2,576.42 2,673.11 2,676.91 3,139.22 3,574.41

Capital Work In Progress 121.27 79.82 141.95 234.26 263.44

Other Assets 18,390.71 22,380.84 25,292.31 44,417.03 37,733.27

Total Assets 459,882.86 493,869.54 566,565.24 721,526.32 964,432.08

Contingent Liabilities 131,325.40 191,819.34 259,536.57 736,087.59 614,603.47

Bills for collection 44,794.10 57,618.44 70,418.15 93,652.89 152,964.06

ANALYSIS OF BALANCE SHEET

According to the balance sheet, assets of the company are increasing year by year like in 2005,company total assets are 459882.86 but after next four years company increase their assets 964432.08.So it means company’s growth is increasing in the market as compare to their competitors. When the company increase their assets then it also have impact on the liabilities.As it is showing that company is growing in the market so its goodwill is also increasing.

Profit and loss account of State Bank of India

Mar '05 Mar '06 Mar '07 Mar '08 Mar '09

Income

Interest Earned 32,428.00 35,794.93 39,491.03 48,950.31 63,788.43

Other Income 7,119.90 7,388.69 7,446.76 9,398.43 12,691.35

Total Income 39,547.90 43,183.62 46,937.79 58,348.74 76,479.78

Expenditure

Interest expended 18,483.38 20,159.29 23,436.82 31,929.08 42,915.29

Employee Cost 6,907.35 8,123.04 7,932.58 7,785.87 9,747.31

Selling and Admin Expenses 2,634.64 1,853.32 3,251.14 4,165.94 5,122.06

Depreciation 752.21 729.13 602.39 679.98 763.14

Miscellaneous Expens es 6,465.82 7,912.15 7,173.55 7,058.75 8,810.75

Preoperative Exp Capitalised 0.00 0.00 0.00 0.00 0.00

Operating Expenses 11,278.18 11,872.89 13,251.78 14,609.55 18,123.66

Provisions & Contingencies 5,481.84 6,744.75 5,707.88 5,080.99 6,319.60

Total Expenses 35,243.40 38,776.93 42,396.48 51,619.62 67,358.55

Mar '05 Mar '06 Mar '07 Mar '08 Mar '09

Net Profit for the Year 4,304.52 4,406.67 4,541.31 6,729.12 9,121.23

Extraordionary Items 0.00 0.00 0.00 0.00 0.00

Profit brought forward 0.34 0.34 0.34 0.34 0.34

Total 4,304.86 4,407.01 4,541.65 6,729.46 9,121.57

Preference Dividend 0.00 0.00 0.00 0.00 0.00

Equity Dividend 657.87 736.82 736.82 1,357.66 1,841.15

Corporate Dividend Tax 93.75 103.34 125.22 165.87 248.03

Per share data (annualised)

Earning Per Share (Rs) 81.79 83.73 86.29 106.56 143.67

Equity Dividend (%) 125.00 140.00 140.00 215.00 290.00

Book Value (Rs) 457.39 525.25 594.69 776.48 912.73

Appropriations

Transfer to Statutory Reserves 3,552.89 3,566.51 3,682.15 5,205.69 7,032.04

Transfer to Other Reserves 0.01 0.00 -2.88 -0.10 0.01

Proposed Dividend/Transfer to Govt 751.62 840.16 862.04 1,523.53 2,089.18

Balance c/f to Balance Sheet 0.34 0.34 0.34 0.34 0.34

Total 4,304.86 4,407.01 4,541.65 6,729.46 9,121.57

ANALYSIS OF PROFIT AND LOSS ACCOUNT

By analyzing the profit and loss account we see that the total income of SBI is higher than the total expenses which shows company has more focus on their interest expended, it means that company expand their interest for long period. So company is earning high net profits after 2007.Earning per share of the company is also increasing year by year because company has strong and good image in the market.

Capital Structure

Period Instrument Authorized Capital

Issued Capital

- P A I D U P -

From To (Rs. cr) (Rs. cr) Shares (nos) Face Value

Capital

2008 2009 Equity Share 214.75 214.75 634880222 10 214.752007 2008 Equity Share 214.75 214.75 631470376 10 214.752006 2007 Equity Share 214.75 214.75 526298878 10 214.752005 2006 Equity Share 214.75 214.75 526298878 10 214.752004 2005 Equity Share 214.75 214.75 526298878 10 214.752003 2004 Equity Share 214.75 214.75 526298878 10 214.752002 2003 Equity Share 214.75 214.75 526298878 10 214.752001 2002 Equity Share 214.75 214.75 526298878 10 214.752000 2001 Equity Share 214.75 214.75 526298878 10 214.751999 2000 Equity Share 214.75 214.75 526298878 10 214.751996 2000 Equity Share 214.75 214.75 526298878 10 214.751995 1996 Equity Share 214.75 214.75 474009872 10 214.751994 1995 Equity Share 214.75 214.75 474009189 10 214.751993 1994 Equity Share 214.75 214.75 473828726 10 214.751991 1993 Equity Share 214.75 200 20000000 100 200

Financial Performance

Profit

The Operating Profit of the Bank for 2008-09 stood at Rs. 17,915.23 crores as compared to Rs. 13,107.55 crores in 2007-08 registering a growth of 36.68%. The Bank has posted a Net Profit of Rs. 9,121.23 crores for 2008-09 as compared to Rs. 6,729.12 crores in 2007-08 registering a growth of 35.55%. While Net Interest Income recorded a growth of 22.63% and Other Income increased by 45.96%, Operating Expenses increased by 24.11% attributable to higher staff cost and other overhead expenses. Dividend The Bank has increased dividend to Rs. 29.00 per share (290%) from Rs. 21.50 per share (215%) in the last year.

HIERARCHICAL STRUCTURE

Manager

Chief marketing officer

Agency head

Regional head

Area marketing manager

Branch manager

Agency manager

Unit manager

Sales office

This is the hierarchial structure of the company which shows who has to report to whom. In a hierarchical organisation employees are ranked at various levels within the organisation, each level is one above the other. At each stage in the chain, one person has a number of workers directly under them, within their span of control. A tall hierarchical organisation has many levels and a flat hierarchical organisation will only have a few.

The chain of command (ie the way authority is organized) is a typical pyramid shape.

FINANCIAL STATEMENT

Mar '05

Mar '06 Mar '07 Mar '08 Mar '09

Investment Valuation Ratios

Face Value 10.00 10.00 10.00 10.00 10.00

Dividend Per Share 12.50 14.00 14.00 21.50 29.00

Operating Profit Per Share (Rs) 148.50 124.77 147.72 173.61 230.04

Net Operating Profit Per Share (Rs) 692.96 719.54 833.38 899.83 1,179.45

Free Reserves Per Share (Rs) 68.67 178.33 184.43 356.61 373.99

Bonus in Equity Capital -- -- -- -- --

Profitability Ratios

Interest Spread 4.28 4.31 4.20 4.32 4.34

Adjusted Cash Margin(%) 14.54 13.06 11.43 12.81 13.04

Net Profit Margin 11.56 11.21 10.12 11.65 12.03

Return on Long Term Fund(%) 105.35 97.89 99.20 86.83 100.35

Return on Net Worth(%) 19.43 17.04 15.41 13.72 15.74

Adjusted Return on Net Worth(%) 19.35 15.93 14.47 13.70 15.74

Return on Assets Excluding Revaluations

0.94 0.89 0.80 0.93 0.95

Return on Assets Including Revaluations

0.94 0.89 0.80 0.93 0.95

Management Efficiency Ratios

Interest Income / Total Funds 8.41 7.94 8.27 8.82 8.88

Net Interest Income / Total Funds 4.15 3.71 3.85 3.87 3.79

Non Interest Income / Total Funds 0.17 0.30 0.19 0.14 0.11

Interest Expended / Total Funds 4.26 4.23 4.42 4.96 5.09

Operating Expense / Total Funds 2.34 2.34 2.39 2.16 2.06

Profit Before Provisions / Total Funds

1.80 1.52 1.54 1.74 1.75

Net Profit / Total Funds 0.99 0.92 0.86 1.04 1.08

Loans Turnover 0.20 0.16 0.15 0.15 0.16

Total Income / Capital Employed(%) 8.58 8.24 8.46 8.96 8.99

Interest Expended / Capital Employed(%)

4.26 4.23 4.42 4.96 5.09

Total Assets Turnover Ratios 0.08 0.08 0.08 0.09 0.09

Asset Turnover Ratio 5.45 5.10 5.44 6.32 7.20

Profit And Loss Account Ratios

Interest Expended / Interest Earned 57.00 56.32 59.35 65.23 67.28

Other Income / Total Income 1.99 3.60 2.25 1.56 1.18

Operating Expense / Total Income 27.34 28.37 28.19 24.13 22.91

Selling Distribution Cost Composition 0.18 0.28 0.20 0.30 0.33

Balance Sheet Ratios

Capital Adequacy Ratio 12.45 11.88 12.34 13.47 14.25

Advances / Loans Funds(%) 56.35 65.66 76.16 78.31 78.34

Debt Coverage Ratios

sCredit Deposit Ratio 52.55 62.11 73.44 77.51 74.97

Investment Deposit Ratio 55.83 48.14 38.22 34.81 36.38

Cash Deposit Ratio 5.23 5.15 6.22 8.29 8.37

Total Debt to Owners Fund 1s5.25 13.75 13.92 10.96 12.81

Financial Charges Coverage Ratio 1.46 1.40 1.37 1.37 1.36

Financial Charges Coverage Ratio Post Tax

1.27 1.25 1.22 1.23 1.23

Leverage Ratios

Current Ratio 0.04 0.05 0.05 0.07 0.04

Quick Ratio 4.79 5.50 6.52 6.15 5.74

Cash Flow Indicator Ratios

Dividend Payout Ratio Net Profit 17.46 19.06 18.98 22.64 22.90

Dividend Payout Ratio Cash Profit 14.86 16.35 16.75 20.56 21.13

Earning Retention Ratio 83.88 80.93 80.97 77.33 77.11

Cash Earning Retention Ratio 86.12 83.64 83.21 79.41 78.88

AdjustedCash Flow Times 67.82 74.03 84.87 72.64 75.05

Mar '05

Mar '06 Mar '07 Mar '08 Mar '09

Earnings Per Share 81.79 83.73 86.29 106.56 143.67

Book Value 457.39 525.25 594.69 776.48 912.73

ANALYSIS OF FINANCIAL STATEMENT

The liquid position of the state bank of India shows that the current asstes of it is decreasing from the 2009 to 2007 which means that the company positon is decreasing as the current assets are decreasing the company should improve there current assets over current liabilities as the current assets are based upon the short term obligation.

Liquid position of the company shows that the liquid assets over current liabilities are decreasing it means that the liquidity is high and the company should work effectively in order to improve the positon.

Liquidity position

The cumulative reduction in the CRR by 400 basis points since mid-September 2008 releasedadditional Rs.1,60,000 crore of primary liquidity. Unwinding of MSS has released primaryliquidity of a little over Rs.63,000 crore. Further, potential liquidity has been made availablethrough various refinance facilities for banks and financial institutions to the tune of Rs.80,000crore. The term repo facility gives an additional potential liquidity of Rs.60,000 crore. The SPV for NBFC will augment potential liquidity by another Rs.25,000 crore. In sum, the actions of theReserve Bank since mid-September 2008 have resulted in augmentation of actual/potentialliquidity of over Rs.3,88,000 crore. In addition, the permanent reduction in SLR by 1.0 per centof NDTL has made available liquid funds of the order of Rs.40,000 crore for the purpose of credit expansion.

Liquidity Facilities

The Reserve Bank has allowed banks to avail liquidity support under the LAF for the purpose of meeting the funding requirements of mutual funds (MFs), nonbanking financial companies (NBFCs) and housing finance companies (HFCs) through relaxation in the maintenance of SLR up to 1.5 per cent of their NDTL. Second, a special refinance facility for scheduled commercial banks (excluding RRBs) was provided by the Reserve Bank on November 1, 2008 under Section17(3B) of the RBI Act, 1934 up to 1.0 per cent of each bank’s NDTL as on October 24, 2008. Both these facilities are currently available up to June 30, 2009. In order to ensure that banks continue to have flexibility in their liquidity management operations in the current market conditions, it has been decided to extend both the refinance facilities up to September 30, 2009.

Key points

• Supply- Liquidity is controlled by the Reserve Bank of India (RBI).• Demand- India is a growing economy and demand for credit is high though it could be cyclical.• Barriers of Entry- Licensing requirement, investment in technology and branch network.• Bargaining power of customers- High during periods of tight liquidity. Trade unions in public sector banks can be anti reforms. Depositors may invest elsewhere if interest rates fall.• Bargaining power of borrowers- For good creditworthy borrowers bargaining power is high due to the availability of large number of banks.• Competition High- There is public sector banks, private sector and foreign banks along with non banking finance companies competing in similar business segments.

Credit rating of the company

The affirmation of the 'B' foreign currency short-term rating on State Bank of India (SBI) reflects the bank's sound business profile, underpinned by its continued leading position in the domestic banking industry. The affirmation also reflects the trend of improvement in the bank's asset quality; its gross nonperforming (NPA) ratio improved to 9.4% in fiscal year 2002-2003, from 11.98% in the previous fiscal year. Despite a difficult operating environment during fiscal 2002-2003, SBI lowered its gross and net NPA ratios, as a result of increased recoveries, loan growth, write-offs and upgrades of its classified accounts. Nevertheless, with the 90-day nonperforming asset classification standard taking effect from March 2004, SBI's gross NPAs are expected to edge up. This, however, will be partly mitigated by the bank's accelerated loan-loss provisioning practice, which had been undertaken to bolster its loan-loss reserves toward the upcoming 90-day default norm.

With a falling interest rate environment and the intense competition in the consumer segment, SBI's net interest income (NII) margins, as denoted by its net interest income to average assets, had fallen to 2.9% in the latest fiscal year, although that is still relatively healthy. The bank's NII margins are expected remain healthy, supported by its strategy of diversifying its loan portfolio into the higher-yielding consumer loans, compared with the traditional focus on the lower-yielding large Indian corporate book.

With some pressure on interest margins, this reinforces the necessity of banks to enhance their sources of noninterest income. Unlike most of SBI's peers, whose noninterest incomes are largely supported by trading profits, SBI has a more balanced base of noninterest income, which represents a strong component of fees and commission income. Going forward, SBI is focused on enhancing this revenue source, through new business growth in credit cards, insurance and fund management.

Cc

SBI plans biggest IPO of Rs 14,500 crore (x) 10.97 9.62 8.83Debt-Equity (x) 10.99 10.28 9.72saNEW DELHI: In what may turn out to be the mother of all fund-raising, State Bank of India is planning to mop up nearly Rs 180,000 crore over the next five years, including a Rs 14,500-crore public offer — the country's biggest — later this fiscal.

While the government and the SBI management are still grappling with details, sources said the fund-raising would involve some new instruments — like issue of preference shares — and also require policy changes to facilitate steps like a rights issue, for which the government might shell out around Rs 10,000 crore.

While SBI needs funds to meet regulatory and expansion needs, for investors, the issue could be good news with fund managers saying the present share price of SBI was much below its intrinsic value. On Monday, SBI shares closed 0.4% higher on the BSE at Rs 1,613.

Despite being the largest bank, SBI has the second-highest market capitalisation of Rs 84,908 crore, compared to ICICI Bank's Rs 92,884 crore. But on most parameters, SBI is a bigger player. It has 9,700 branches, compared to ICICI Bank's 950.

SBI's deposit base was Rs 4,50,000 crore, against ICICI Bank’s Rs 2,31,000 crore, while its advances were estimated at Rs 3,44,000 crore and its private sector rival had a credit base of Rs 1,98,000 crore at the end of June 2007.

SBI to merge State Bank of Indore with itself

State Bank of India (SBI), the country's largest bank, has decided to merge another subsidiary, State Bank of Indore with itself.

The proposal was approved by the SBI board on Friday.

It should be noted that this will be the second associate bank of the SBI - after State Bank of Saurashtra in July 2008 - to be consolidated with the parent.

Presently, SBI holds a 98.05 per cent stake in State Bank of Indore, the smallest among its six associate banks.

State Bank cuts deposit rates by 0.25% from June 15 

With effect from June 15, the deposit rates across all maturities of country's largest lender, State Bank of India (SBI) will be slashed by 0.25%.

About the new cut, SBI said that deposits rates of 181 days to less than one year term will be reduced to 6.25 per cent as against the earlier 6.50 per cent; while interest rates for deposits of one-year to

less than 2-years will be slashed to 7 per cent from 7.25 per cent earlier

SBI Life Insurance ties knot with Syndicate Bank

SBI Life Insurance, one of the leading private life insurers, has entered into an alliance with Syndicate Bank, one of India’s premier public sector banks, to offer housing loan insurance cover to lender’s home loan borrowers.

Under the arrangement, SBI Life will provide insurance cover to Syndicate Bank’s home loan customers, who have availed loan under the special scheme announced by Indian Bankers Association (IBA) and Government of India.

Under the special scheme, effective up to 30th June 2009, home loan customers, between age group 18 to 55 years, availing a loan up to Rs. 20 lakh will be eligible for home loan cover at no extra cost.

It should be noted that the housing loan cover, premium of which will be borne by the bank, does not involve any documentation.

Syndicate Bank has registered a global business of more than Rs 1.93 trillion as on 31st March 2009.

Conclusion

It can be concluded that the efficiency of the company is increasing and financial position can be easily depicted from the share price over the year, balance sheet and profit and loss a/c . The financial position is also being determined through them. The latest news is also being discussed with IPO issues is also been discussed in order to determine their position the creditability rating is also being determined.Thus,from all this it shows that the company is growing and is building its strong image.