Important News about State Bank of India

16 Important Banking News (State Bank of India) 

These various news headlines are taken from State Bank of India’s official press releases and Twitter handle

Important News about State Bank of India

1. SBI launches its own generic Top Level Domain with its website “bank.sbi”

State Bank of India announced in a press statement, a rebranding of its Corporate Website as “bank.sbi” from earlier sbi.co.in.

Bank.sbi is the highest domain protocol, known as generic Top Level Domain (gTLD).

gTLD adoption enables an organization to use its corporate name (.sbi) as their website’s top-level identifier, instead of using a more traditional “.com” or “.co.in” domains.

With this, SBI has become the first banking organization in India to use a gTLD for its internet presence and providing an exclusive experience of assurance and security to its Customers.

Source: State Bank of India Press Release, Mumbai – 20th February, 2017

 

2. SBI has become the First Indian bank to launch a branch in Myanmar

Mrs. Arundhati Bhattacharya, Chairman, State Bank of India (SBI) inaugurated the 54th foreign branch of SBI in Yangon, Myanmar.

The launch of this Branch has extended the global presence of SBI in 37 countries through 198 offices.

Recently SBI has upgraded its branch in Seoul. It also has a large presence in Singapore and a banking joint venture in Indonesia.

Source: The Indian Express, October 3, 2016

3. SBI  ties up with TATA Housing for a “Never Before” partnership for Tata Homes.

By way of this partnership, Government Employees and Defence Personnel having SBI Salary accounts will get a never before offer on TATA Housing Homes should they avail an SBI Home Loan for the same.

This exclusive, time bound offer is designed to help customers save significantly.

The MOU between India’s two trusted brands for joint initiatives were signed by Mr. Rajnish Kumar, MD (NBG), SBI and Mr. Brotin Banerjee, MD & CEO, TATA Housing.

Source: nrinews24x7.com, September 07, 2016

4. State Bank of India launched a social media banking application named Mingle

Arundhati Bhattacharya, Chairman, State Bank of India, on the occasion of 61st State Bank Day, launched a social media banking platform for Facebook and Twitter users, called ‘SBI Mingle’. It is designed to help the customers with a host of banking services on their social media accounts, at their own convenience.

State Bank Mingle is the social banking application of SBI which enables you to perform basic banking activities through SBI’s official Facebook page.

To get started, users need to access SBI Mingle from the Official SBI Facebook Page. Once the access to the page is established, users need to register and then Sign in, in that order.

Source: Press Release, July 1, 2016, State Bank of India

5.  The Bharatiya Mahila Bank Limited (BMB) has merged with State Bank of India (SBI) on April 1, 2017

Now all branches of BMB will function as branches of State Bank of India (SBI) and customers, including depositors of Bharatiya Mahila Bank Limited, will be treated as customers of SBI with effect from April 1, 2017.

6. All branches of five associate banks have merged with parent State Bank of India and now they begin functioning as SBI branches from April 1, 2017

According to government orders issued on February 22 under the State Bank of India Act, 1955, the entire undertaking of State Bank of Bikaner & Jaipur, State Bank of Mysore, State Bank of Travancore, State Bank of Patiala, and State Bank of Hyderabad will stand transferred to and vested in State Bank of India from April 1, 2017.

“Customers, including depositors of State Bank of Bikaner and Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala and State Bank of Travancore will be treated as customers of State Bank of India with effect from April 1, 2017,” the RBI said in a notification.

With the merger, the SBI has entered the ranks of top 50 global banks.

It will have a balance sheet size of Rs.41 trillion (Rs.41 lakh crore),

It has now maintaining 22,500 branches and 58,000 ATMs.

It has the combined strength of 277,000 Officers and employees, with the exception of the board of directors and executive trustees of the associate banks, following the merger.

It will have over 50 crore customers. 

SBI’s market share will increase to 22% from previous 17%.

The branch rationalization will happen in the second half of the next financial year, said Rajnish Kumar, Managing Director (National Banking Group), State Bank of India. “Branch rationalization will happen wherever the retail branches are in close proximity. For example, in Tirupati, in a single building, we have State Bank of India on the first floor and State Bank of Hyderabad on the second floor. We don’t need two outfits in one building or in close proximity,” said Kumar.

7. If the UP government fulfills its farmer loan waiver promise, banks are likely to take a hit of Rs.27,420 crore

In a recent research report published by SBI, the report gave warning, if the UP government fulfills its farmer loan waiver promise, banks are likely to take a hit of Rs.27,420 crore. The scheme will lead to some stress on the state’s fiscal arithmetic, the report further cautioned.

The BJP had in its UP election manifesto promised to waive farmers’ loans if elected to power. The party and its allies won a whopping 325 seats in the 403-member House.

The report said, schedule commercial banks together had an outstanding farm credit of Rs.86,241.20 crore in UP with the average ticket size of Rs.1.34 lakh, as of 2016, most of which is availed by small and marginal farmers.

According to RBI data (2012), 31 per cent of the direct agriculture finance went to marginal and small farmers (landholdings up to 2.5 acres).

8. State Bank of India’s Chairperson Arundhati Bhattacharya was named the 25th most powerful woman among 100 most powerful women in the world by ‘Forbes’

She was also ranked at 26th position in ‘Fortune’ magazine’s 50 world’s greatest leaders.

In 2016, ‘Fortune’ magazine listed her in 2nd position in the list of the Most Powerful Women International.

A little biography

Arundhati Bhattacharya, 60 is chairman of the country’s largest lender, State Bank of India, and the first woman chief to be so at the bank.

Bhattacharya’s father, Prodyut Kumar Banerjee, worked at the Bhilai Steel Plant. Her mother, Kalyani Mukherjee, was a homeopathy consultant in Bokaro. Her husband is a former professor of IIT Kharagpur.

She completed her schooling from the St. Xavier’s School, Bokaro.

She studied English Literature at Kolkata’s Lady Brabourne College and then earned her post graduation at Jadavpur University.

Bhattacharya joined SBI in September 1977 as a probationary officer. She was 22-years-old then.

During her 36-year-long career with the bank, she was in foreign exchange, treasury, retail operations, human resources and investment banking.

She has been chief executive of the bank’s merchant banking arm, State Bank of India Capital Markets and chief general manager in charge of new projects.

She has also served at the bank’s New York office.

She succeeded Pratip Chaudhuri as chairperson on 7 October 2013 to become the first women in SBI’s history to get the post. 

She introduced a two-year sabbatical leave policy for the bank’s female employees to be used either for maternity leave or to care for elders.

On Women’s day, she announced free vaccination against cervical cancer to all the bank’s female employees.

In 2016, she was among the final four shortlisted candidates to become RBI governor after then governor, Raghuram Rajan, was denied a second term.

9. SBI has revised charges for Cash withdrawals from ATMs and for maintaining  monthly average balance (MAB)

Under the revised charges, cash withdrawal from ATMs will attract a Rs.20 charge if the number of transactions exceeds three from other bank’s ATMs in a month and Rs.10 for more than five withdrawals from SBI ATMs.

However, SBI will not levy any charge on withdrawals from its own ATMs if the balance exceeds Rs.25,000. In a case of withdrawal from ATMs of other banks, there will be no charge if the balance exceeds Rs.1 lakh.

The number of free ATM transactions will be three in metros and five in other centers.

SBI imposed a service charge for failure in maintaining monthly average balance (MAB) in metro, urban and rural centers.

For metro, failure to meet Rs.5,000 balance will attract a Rs.50 charge for 50 per cent shortfall, Rs.75 for the shortfall between 50-75 per cent and Rs.100 for 75 percent or more shortfall.

In the case of urban centers, failure to meet Rs.3000 MAB will attract Rs.40 service charge, Rs.60 for 50-75 per cent shortfall and Rs.80 for 75 percent or more shortfall.

SBI has also announced charges for issuing cheque books, cheque collection, stop payments, issuing certificates, bill collection and NEFT and RTGS charges.

It has also revised charges for current accounts as well.

For debit cards, SBI will charge an annual maintenance fee of Rs.125-300 depending on the category of the card.

On March 1, in a move aimed at discouraging cash transactions, HDFC Bank, ICICI Bank and Axis Bank have started charging a specific transaction amount after a certain limit in the case of cash transactions. However, public sector banks, including market leader State bank of India, are yet to announce any charges on cash transactions.

10. State Bank of India (SBI) has reduced interest rates on term deposits with various maturities level

State Bank of India (SBI) has reduced interest rates on term deposits with maturities of between 180 days and one year, and between 456 days and three years with effect from March 1.

The country’s largest bank by assets will now pay 6.5% on deposits with maturities of between 180 days and less than one year, and 6.75% on those maturing between 456 days and less than three years.

Earlier, SBI used to pay 6.75% on deposits maturing between 180 days and 210 days, 7% on those maturing between 211 days and less than a year, 6.95 % on deposits maturing between 456 days and under two years and 6.85% on those maturing between two years and less than three years.

The corresponding rates for deposits maintained by senior citizens will be 7% and 7.25%.

Despite the cut in rates, two and three-year money with SBI will continue to pay more than at its closest rival, HDFC Bank, which pays 6.25% and 6%, respectively, on deposits of these two maturities.

In recent days, some bankers, including Punjab National Bank managing director (MD) and CEO Usha Ananthasubramanian, Bank of Baroda MD and CEO PS Jayakumar and IDBI Bank executive director RK Bansal, hinted at cuts in the savings deposit rate.

At present, most banks pay 4 % on savings deposits.

11. State Bank of India, which is the largest employer of those with disabilities, has taken the lead to set up a Centre of Excellence (CoE) for training employees with disability in Bengaluru

The bank has set up the CoE keeping in mind it employs 2,800 people with disability— about 1.4 per cent of its overall employee strength.

The CoE has been set up by the SBI Foundation.

The center initially will be ‘training the trainer’ and it is expected to create the training modules or programs.

The initiative is part of SBI’s CSR activities. SBI is required to use or spend 1 percent of its profits for CSR activities.

12. SBI has been adjudged as the “Best Project Finance House” in Asia by Finance Asia, Hong Kong

13. State Bank of India (SBI) has announced that it will offer credit cards with ‘zero annual fees’ for four years

The SBI Credit Card named “Unnati” will be offered free to every account holder having a balance of Rs 20,000, without going into credit history.

The decision has been taken in order to encourage adoption of credit cards and also digital payments.

14. SBI Chairman Smt. Arundhati Bhattacharya won ‘Outstanding Business Leader Of The Year’  at CNBC TV18 Live’s 12th IBLA Awards

15. State Bank of India and real estate developers’ body CREDAI have signed a memorandum of understanding (MoU)

SBI and CREDIA has signed a MoU to jointly conduct various initiatives towards development of the realty sector.

The MoU will be in force for a period of 3 years.

16. SBI announced a  One Time Settlement scheme for Agriculture Loans

The scheme was valid until 31st March.

The OTS scheme was for tractor and farm mechanization.

 

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