Page 46 - Banking Finance October 2015
P. 46
ARTICLE
Bank of India Act 1934, banks are classified as scheduled vate sector banks the run for their banks,thanks to the
banks and non-scheduled banks. The scheduled banks are adoption of state-of-the art banking technologies and in-
those, which are entered in the Second Schedule of RBI troduction of best banking services on the technology
Act, 1934. Such banks are those, which have paid- up capi- front, State Bank of India is working on the linking of
tal and reserves of an aggregate value of not less then branch operations in under way of well as on new solu-
Rs.5 lakhs and which satisfy RBI that their affairs are car- tions for treasury business and risk management.
ried out in the interest of their depositors. All commercial
banks, Indian and Foreign, Regional Rural Banks and State Over 85 per cent of the banks domestic operations are
Cooperative Banks are Scheduled banks. Non Scheduled handled over by 3,700 fully computerized branches. The
banks are those, which have not been included in the Sec- strategy, according to bank sources, has enabled im-
ond Schedule of the RBI Act, 1934. proved customer service efficiency in house - keeping and
improvement in base level customer services like prompt
Indian Bank won the Financial Express's Best Bank Award interest application accurate book keeping and other com-
in 2008. The network of the bank comprises 100 per cent puterized tasks. State Bank of India in India is largest com-
Business Computerization, 168 Centers throughout the mercial bank.
country covered under 'Anywhere Banking', Core Banking
Solution (CBS) in 1557 branches and 66 extension State Bank of India has a vast domestic network of over
counters, 618 connected ATMs in 225 cities/towns and 14,186 branches and also opened 186 foreign branches.
also 24 x 7 Service through 32000 ATMs under shared net- The State Bank of India group includes a network of 7
work. banking subsidiaries and several non-banking subsidiaries
offering merchant banking services fund management,
The organized banking system in India can be broadly clas- factoring services, primarily dealership in government se-
sified into three categories: (i) Commercial Banks (ii) Re- curities, credit cards and insurance.
gional Rural Banks and (iii) Co-operative banks. The Re-
serve Bank of India is the supreme monetary and banking State Bank of India is pursuing aggressive IT policy, where
authority in the country and has the responsibility to con- the Automated Teller Machines are now also enabled to
trol the banking system in the country. It keeps the re- pay utility bills, college fees, book air-line tickets and ac-
serves of all commercial banks and hence is known as the cept donations. State Bank group has one of the largest
"Bankers Bank". ATM networks in the world with 32,752 ATMs as on 31st
March, 2013.
3. State Bank of India - A Profile Infrastructure fund, private equity, venture capital and
pension fund management are under process to assist the
The origins of State Bank of India date back to 1806 when customer in time. State Bank of India is targeting to
the bank of Calcutta later called the Bank of Bengal was emerge as the best rated bank among public, private, for-
established. In 1921, the Bank of Bengal and 2 other presi- eign and state - owned banks. Employee Stock Option
dency banks (Bank of Madras and Bank of Bombay) were Scheme, where employee has the option to pick up shares
amalgamated to form the Imperial Bank of India. In 1st as per their needs is available in State Bank of India.
July 1955, the controlling interest in the Imperial bank of
India was acquired by the State Bank of India and State 4. The concept of risk
Bank of India came into existence by an act of parliament
as successor to the Imperial Bank of India. Risk is the fundamental element that drives financial
behavior. Without risk, the financial system would be
State Bank of India leads the public sector pack, emerging vastly simplified. However, risk is omnipresent hi the real
as third in the overall banking and finance. State Bank of world. The core business of bank is to manage the risk.
India is the largest bank in the country and has witnessed Financial institutions, therefore, manage the risk
a great transformation in recent years. It has given pri- efficiently to survive in this highly uncertain world. The
46 | 2015 | OCTOBER | BANKING FINANCE
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