State Bank of India shortly known as SBI, is a commercial bank owned by the state i.e. Indian government. The bank is headquartered in Mumbai and has its branches all over India as well as in some foreign countries. However, it is the oldest commercial bank in India, it was nationalized by the Indian government in 1955.
Establishment date and History
The State Bank of India was originally established in 1806 and went by the name ‘Bank of Calcutta’. However, three years later, the bank issued a royal charter and renamed the Bank of Bengal. It was one of the three presidency banks, while the two others were, Bank of Bombay (founded 1840) and the Bank of Madras (founded 1843). The three banks were jointly owned by the provincial government and the subscribers. They were merged in 1921 to form the Imperial Bank of India(IBI). It was in 1955 when the government of India and the Reserve Bank of India assumed the joint ownership of IBI and renamed it to State Bank of India(SBI).
The Reserve Bank of India(founded in 1935) transferred its shares of the SBI to the Indian government in 2007. The bank today finances various agricultural, industrial and development projects across the country and raises loans for the government too. It is governed by a board of directors and the board is headed by a chairman. The Chairman and the Managing Directors of the bank are appointed by the government itself. Currently, the bank has an extensive network of over 24000 branches in India and over 190 offices in 35 foreign countries. It also has some sister organizations established under the joint ventures between India and other countries. One such key venture is Nepal SBI Bank.