State Bank of India
STATE BANK OF INDIA INTRODUCTION: The task of identifying a suitable company which will give maximum return on shareholder’s fund has been a major motivation for researching into State Bank of India (SBI). Analysis was carried out to give a detailed understanding of the company’s current performances and future potentials. Results have been discussed under three main sub-headings which include: the company’s profile, SWOT analysis and Management performance analysis. The final decision on the viability of investing in SBI is provided in the recommendations and conclusion. COMPANY PROFILE State Bank of India (SBA) is India’s largest bank, having a total number of branches of about 16,000 located both within and outside the country. The Bank has a long standing history which dates back to 1955 when it was originally commissioned as community service banking. Trends have changed over the years however under the two main operations of the Bank i.e. the Banking and Treasury Operations. See Table 1. The Bank now caters to a range of banking needs via its Banking operations which include; retail, international, corporate and national banking arms. Also its activities in treasury operations have seen it participating in the money market, forex and treasury management. Furthermore SBI under the group name -SBI Group, has since been enjoying economies of scale by operating alongside other subsidiary companies of the group. These include; six associated banks, four foreign subsidiaries, four non Banking subsidiaries and two joint ventures. See Table 2. Presently the Bank’s Balance Sheet size is worth about 8lakh crore rupees (dollar equivalent) , also with revenue and profit quoted at INR683,768.3Million and INR63,643.8million respectively. SWOT Analysis Performing a SWOT analysis summarises SBI’s strengths and competitive position within the Market it functions in. The table below shows the details of the SWOT. Management Performance Analysis