A Project Report On

A PROJECT REPORT ON
“FINANCIAL MARKET AND INSTITUTION OF

STATE BANK OF INDIA’’
A PROJECT REPORT SUBMITTED TO UTKAL UNIVERSITY IN PARTIAL

FULFILLMENTOF THE DEGREE OF MASTER OF FINANCE AND CONTROL
(2017-2019)
Submitted BY
Rojalin Das
Master of Finance &Control
Roll No-
Regd.No-
Under the guidance of :
EXTERNAL GUIDE INTERNAL GUIDE
MR.PRADEEP KU.DORA SITENDRA KU. BALIARSINGH
BRANCH MANAGER FACULTY OF FINANCE
STATE BANK OF INDIA INSTITUTE OF MEDIA STUDIES
BHUBANESWAR BHUBANESWAR
Department Of Management and Finance

INSTITUTE OF MEDIA STUDIES
(AFFILIATED TO UTKAL UNIVERSITY)
BHUBANESWAR, ODISHA
CERTIFICATE
That is to certify this project entitled “FINANCIAL MARKET AND

INSTITUTION OF STATE BANK OF INDIA” is an authentic piece of work done
by Miss Rojalin Das under my supervision and management and it consists of
genuine data as a result of her enthusiasm and efficient work. The report is
accomplished in meeting the standard requirements relating to the summer project
as per course curriculum and the now here, no part of this project has been
submitted for any other degree of course .This project report has been completed
by her own efforts and hard work.
So, I Wish her a prosperous and a successful life in the future.
Date:
Place: BBSR Internal Guide
Mr. Sitendra ku.Baliarsigh
Faculty of Finance
IMS,BBSR
CONTENTS
DECLARATION: PAGE .NO

ACKNOWLEDGEMENT:
PREFACE:
EXECUTIVE SUMMARY:
CHAPTER-1:
INTRODUCTION:
1.1 INTRODUCTION
1.2 OBJECTIVE OF THE STUDY
1.3 RESEARCH METHODOLOGY
1.4 LIMITATION OF THE STUDY
1.4 RESEARCH DESIGN
1.5 LITERATURE REVIEW
CHAPTER-02
COMPANY PROFILE:
2.1 INTRODUCTION OF STATE BANK OF INDIA
2.2 BANK PROFILE
2.3 HISTORY OF STATE BANK OF INDIA
2.4 MISSION OF STATE BANK OF INDIA
2.5 VISION STATEMENT OF STATE BANK OF INDIA

CHAPTER-03
CONCEPTUAL STUDIES:
3.1 INTRODUCTION
3.2 DEFINITION
3.3 SCOPE OF FINANCIAL MARKET AND INSTITUTION
3.4 FEATURES OF FINANCIAL MARKET
3.5 STRUCTURES
3.6 TYPES OF FINANCIAL MARKET
3.8 CERTIFICATE OF DEPOSIT(CD)MARKET
3.9 FINANCIAL INSTITUTION
3.10 INSTITUTIONAL INVESTOR
3.11 REGULATORY INSTITUTIONS
3.12 DISCLOSURES
CHAPTER-04
DATA ANALYSIS
CHAPTER-5
CONCLUSIONS 5.1 FINDING
5.2 SUGGESTION
5.3 CONCLUSION
BIBLIOGRAPHY
DECLARATION
I do hereby declare that the project entitled “FINANCIAL MARKET AND
INSTITUTION OF STATE BANK OF INDIA “submitted in partial fulfillment of
the requirement of the Degree of Master of Finance and control, IMS is an original
piece of work done by me under the guidance of Mr.Sitendra Kumar Baliarsingh
.This has not been submitted for the award of any degree elsewhere in part or full.
Place:BBSR ROJALIN DAS
Date:
ACKNOWLEDGEMENT
The satisfaction that accompanies the successful completion of this task would be
incomplete without mentioning people who made it possible , whose
encouragement and consistent guidance crowed my effort with success.
I would like to express my heartfelt in debtness and deep sense of gratitude to my

company guide , Mr. Pradeep Ku .Dora For sharing his knowledge and giving me
guidance throughout my summer internship. I would also like to give sincere
thanks to all the staff members of STATE BANK OF INDIA for their kind and
generous cooperation.
I express my deep since of gratitude to my faculty guide Mr. Sitendra Ku .

Baliarsingh , MFC, Institute Of Media Studies (IMS) Bhubaneswar for his
suggestions ,constant inspiration and prompt guidance to carry out and complete
this study.
Finally , I thanks all those who have directly or indirectly helped me in my project
.I express my profound thanks to my teachers , my family as well as friends for
their constant encouragement.
Place: BBSR ROJALIN DAS
Date:
PREFACE
According to the syllabus prescribed by IMS, UTKAL UNIVERSITY . We have

prepared projects for appropriate subject. This is a part of our curriculum .A
project is the most suitable method for expressing the ideas and thirst for
knowledge. A project is very much important and necessary to cultivate a bright
and shining future.
The project has written in Simple, concise and lucid from so that the reading is
pleasurable throughout . With due help of this project, we are able to highlight our
views and ideas what we have gained in a particular subject.
I hope this project done by me will meet the approval of teachers.
EXECUTIVE SUMMARY
Introduction
CHAPTER-1
INTRODUCTION
A PROJECT REPORT ON “FINANCIAOL MARKETS AND INSTITUTIONS OF STATE BANK OF INDIA”
1.1 INTRODUCTION
A Financial market is an institution or arrangement that facilitates the exchange
of financial instruments, including deposits and loans, corporate stocks and
bonds, government bonds, and more exotic instruments such as options and
futures contracts.
A Market wherein financial instrument such as financial claims, assets and

securities are traded is known as a ‘financial market’. Financial market
transactions may take place either at a specific place or location , e.g. stock
exchange , or through other mechanisms such as telephone, telex, or other
electronic media. In financial markets, the price for the use of investible funds
is the interest paid on the funds transacted.
1.2 OBJECTIVE OF THE STUDY
After studying this text the learner should /should be able to:
 Outline the participants in the financial markets.

 Describe the share and debt markets, and name their collective
name.
 List the instruments of the money and bond markets.
 Distinguish between fixed interest and interest-bearing markets.
 Define the foreign exchange market.
 List the derivative instruments and briefly describe them.
 Elucidate the organization of the financial markets.
 Discuss the functions of secondary markets.
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IMS, AFFILIATED TO UTKAL UNIVERSITY, BBSR
A PROJECT REPORT ON”FINANCIAL MARKETS AND INSTITUTION OF STATE BANK OF INDIA”
1.3 RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the research problem. It
may be understood as a science of studying how research is done scientifically. So,
the research methodology not only talks about the research methods but also
considers the logic behind the method used in the context of the research study. It
comprises the theoretical analysis of the body of methods and principles associated
with a branch of knowledge. Typically, it encompasses concepts such as paradigm,
theoretical model, phases and quantitative or qualitative techniques.
A methodology does not set out to provide solutions-it is therefore, not the same
as a method. Instead, a methodology offers the theoretical underpinning for
understanding which method, set of methods, or best practices can be applied to a
specific case, for example, to calculate a specific result.
It has been defined also as follows:
1.”the analysis of the principles of methods, rules, and postulates employed by a

discipline”
2.”the systematic study of methods that are, can be, or have been applied within a
discipline “.
3.”the study or description of methods”.
Objectives of research methodology

To purpose of research is to discover answer to questions through the application
of scientific procedures. The main aim of research is to find out the truth which is
hidden and which has been discovered as yet. Through each research study has its
own specific purpose. We mention some general objectives of research below:
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A PROJECT REPORT ON”FINANCIAL MARKET AND INSTITUTIONS OF STATE BANK OF INDIA”

1. To gain familiarity with phenomenon or to achieve new insights into
it(studies with this object in view are termed as explanatory or formulative
research studies).
2. To portray accurately the characteristics of a particular individual, situation
or a group (studies with this object in view are known as descriptive research
studies.
LIMITATION OF THE STUDY

Incomplete financial instrument disclosure requirements restricted
researchers to using binary variable as a dependent variable instead of
notional value or fair value of derivative usage.
The following are the various limitation of the study are discussed
below:
1. Changing patterns .Boom-and –bust cycles may

occur periodically, but people have trouble recognizing
them because there are always some differences. It
might be Internet stocks one time, but housing the
next. It might be a market as a whole, or just an
individual sector, stock or geographic region. The
recurrence of market history is a bit like a
kaleidoscope: some of the same shapes appear again
and again, but they always rearrange themselves in a
new way.
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IMS, AFFILIATED TO UTKAL UNIVERSITY

2. The false comfort of back data. Perhaps the most
dangerous thing about market history is the way some
members of the
3. financial profession rely on historical data to construct

models of what will happen in the future. In truth,
these data sets are usually not long enough to have any
predictive value , but the precision of statistical
analysis gives some people a false sense of security.
4. Infinite interactions. There are just too many

economic and financial variables to expect one
scenario to precisely resemble a previous one .We are
in an era of global trade, an aging population , instant
information and shifting oil market dynamics due to
both conversation and new drilling methods.
5. Specific time period. Financial markets are prepared

for a specific time period normally a year. Looking at
one such period could be misleading because of
seasonal impact on businesses, economic ups and
downs etc. It is always advisable to look at 2 to 3
periods or even more if we wish to have a true analysis
of the affairs of a company. Also, these statements
show financial position on a particular date where is
the financial position changes every day and with
every transaction.
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A PROJECT REPORT ON” FINANCIAL MARKETS AND INSTITUTIONS OF STATE BANK OF INDIA”
1.5 RESEARCH DESIGN

Research design is a way to analyze different aspects systematically to
reach at a define solution. The formidable problem that follows the task
of defining the research problem is the preparation of the design of the
research project , popularly known as the “research design”. Decisions
regarding what, where, when, how much, by what means concerning an
inquiry or a research study constitute a research design. “A research
design is the arrangement of conditions for collection and analysis of
data in a manner that aims to combine relevance to the research purpose
with economy in procedure “.In fact , the research design is the
conceptual structure within which research is conducted ; it constitutes
the blueprint for the collection , measurement and analysis of data. As
such the design includes an outline of what the researcher will do from
writing the hypothesis and its operational implications to the final
analysis of data.
As core objective of the study is based on both primary data

and secondary data. This project work is following both primary and
secondary sources. primary data are those, which are collected a fresh
and for the first time and thus happen to be original. The primary data is
more difficult and it takes more time. Secondary data are those, which
are previously collected and recorded by the organization. It is less time
consuming and less expensive.
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Types of Research Design
A researcher must have a clear understanding of the various types of
research design to select which type of research design to implement for
a study. Research design can be broadly classified into quantitative and
qualitative research design.
1. Descriptive Research design

2. Experimental Research Design
3. Correlational Research Design
4. Diagnostic Research Design
5. Explanatory Research design
1.6LITERATURE REVIEW
There are mainly five stands of literature exploring various aspects of the link
between finance and economic development. The first among them pertain to the
relation between financial structure and economic development pioneered by
Goldsmith (1969). Such studies evaluated the relative merits of bank-based and
market-based financial systems and their impact upon economic development.
Second strand of research attempted to study the role of financial markets,
including stock market, from a functional point of view. Researchers in this school
investigated the contribution of financial markets in the provision of liquidity,
amelioration of risks and informational symmetry, mobilization of resources and
corporate governance. A large body of cross-country and country level studies are
made in this line following the seminal works by king and Levine (1990, 1995,
1996); and most of them concluded that financial markets in general and stock
markets in particular positively contributes to economic growth through the
provision of these services.
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Another prominent line of researchers investigated the impact of financial market
development on the capital structure decisions and growth rate of firms. They have
found that well developed and efficient financial markets ease the constraints that
firms face to growing faster (Demirgüç-Kunt and Maksimovic 1995, 2000). Fourth
strand of literature focused on the nexus between legal environment in which
banks and stock markets work and overall economic development .
Subsequent studies in this line rejected the view that financial structure influences
economic development. Instead they concluded that it is the legal system that
strongly influences the level of financial development which in turn influences
firm performance, creation of new firms, and national growth rates. Another area
where there has been recent empirical work is the impact of financial development
on income distribution and poverty. Studies on financial access and income
distribution (Haber 1997), financial development and its impact on the growth rate
of Gini Coefficient of income distribution (Beck, Demirgüç-Kunt and Levine
2004) show that financial development exerts a positive impact on the poor and
reduce income inequality.
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CHAPTER-2
COMPANY PROFILE
A PROJECT REPORT ON “FINANCIAL MARKET AND INSTITUTIONS OF STATE BANK OF INDIA”
2.1 INTRODUCTION OF STATE BANK OF INDIA

The State Bank of India (SBI) is an Indian multinational, public sector banking
and financial services statutory body. It is a government corporation statutory body
headquartered in Mumbai, Maharashtra. SBI is ranked as 216th in the Fortune
Global 500 list of the world's biggest corporations of 2018. It is the largest bank in
India with a 23% market share in assets, besides a share of one-fourth of the total
loan and deposits market.
The bank descends from the Bank of Calcutta, founded in 1806, via the Imperial
Bank of India, making it the oldest commercial bank in the Indian subcontinent.
The Bank of Madras merged into the other two "presidency banks" in British India,
the Bank of Calcutta and the Bank of Bombay, to form the Imperial Bank of India,
which in turn became the State Bank of India in 1955.[7] The Government of India
took control of the Imperial Bank of India in 1955, with Reserve Bank of
India (India's central bank) taking a 60% stake, renaming it the State Bank of India.
The State Bank of India is the biggest commercial bank and holds a special
position in the modern commercial banking system in India. It came into existence
on July 1, 1955 after the nationalisation of Imperial Bank of India. The Imperial
Bank of India was established in 1921 by amalgamating the three Presidency
Banks of Madras, Bombay and Bengal.
Until the establishment of the Reserve Bank of India in 1935, the Imperial Bank of
India, in addition to its normal commercial banking functions had been performing
certain central banking functions. It used to act as the banker to the government, as
banker’s bank and as the clearing house.
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After the establishment of the Reserve Bank of India, the Imperial Bank of India
left its central banking functions, but continued to serve as the agent of the Reserve
Bank in the areas where the latter did not have its branches. In 1955, on the
recommendations of the Rural Credit Survey Committee, the Imperial Bank of
India was nationalised and renamed as the State Bank of India through the State
Bank of India Act 1995.
2.2 BANK PROFILE

State Bank of India (SBI) Group is the biggest financial services conglomerate in
India. Headquartered in Mumbai, SBI provides a wide range of products and
services to individuals, commercial enterprises, large corporates, public bodies and
institutional customers through its various branches and outlets, joint ventures,
subsidiaries and associate companies. The Group comprises of State Bank of India
(SBI), its various non-banking subsidiaries/ joint ventures, and foreign banking
subsidiaries/ joint ventures.
SBI, the flagship company of the group, traces its ancestry to Bank of Calcutta
founded in 1806. It was the first bank established in India, and over a period of
time, evolved into State Bank of India (SBI). SBI represents a sterling legacy of
over 200 years. It is the oldest commercial bank in the Indian subcontinent,
strengthening the nation’s trillion-dollar economy and serving the aspirations of its
vast population. The Bank is India’s largest commercial Bank in terms of assets,
deposits, branches, number of customers and employees, enjoying the faith of
millions of customers across the social spectrum.
A Fortune 500 company, SBI has entered into the league of top 50 global banks
with a balance sheet size of over Rs 30 lakh crore, over 24,000 branches and
59,000+ ATMs serving over 42 crore customers after the merger of its five
Associate Banks and Bharatiya Mahila Bank on 1st April 2017. SBI has an
overseas presence through 195 foreign offices spread across 36 Countries .
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IMS, AFFIL;IATED TO UTKAL UNIVERSITY, BBSR
A PROJECT REPORT ON” FINANCIAL MARKET AND INSTITUTIONS OF STATE BANK OF INDIA”
What these impressive figures do not reveal is the tremendous trust Indians repose
on the Bank. SBI has been the most trusted brand on the banking horizon in India.
The Bank believes that it owes a solemn duty to the less fortunate and
underprivileged members of the society to make sustainable social change in their
lives.
The Bank has always placed the interest of the common man at its core. SBI has
thoughtfully designed products and services to meet all the needs of the financial
life cycle of an average Indian. Bank’s customised savings products are very good
options for young adults to build a corpus for themselves and their children. The
variety of Home Loan products offered at very affordable prices, personal loans,
car loans, debit and credit cards and travel cards cater to lifestyle improvement
needs. While Education Loans ensure smooth completion of technical or higher
education in India and abroad, the range of Health Insurance options provide
reliable protection for aging parents and also the whole family. From vehicle and
home insurance to demat accounts and wealth management, from precious metals
to private banking, SBI is at your beck and call to cater to your needs, on its own
and through the group companies.
On the technology front, SBI has expanded the digital base of the Bank manifold in
recent years. It plays a vital role in making the Government of India’s Digital India
initiative a reality. SBI has always been on the forefront to embrace changes
without losing sight of its credos like transparency, sustainability, social
responsibility and customer service.
State Bank of India (SBI) is the largest state-owned banking and financial services
company in India. The bank provides banking services to the customer.
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In addition to the banking services, the bank through its subsidiaries, provides a
range of financial services, which include life insurance, merchant banking, mutual
funds, credit card, factoring, security trading, pension fund management and
primary dealership in the money market.
The Bank operates in four business segments, namely Treasury, Corporate/

Wholesale Banking, Retail Banking and Other Banking Business. The Treasury
segment includes the investment portfolio and trading in foreign exchange
contracts and derivative contracts. The Corporate/ Wholesale Banking segment
comprises the lending activities of Corporate Accounts Group, Mid Corporate
Accounts Group and Stressed Assets Management Group. The Retail Banking
segment consists of branches in National Banking Group, which primarily includes
personal banking activities, including lending activities to corporate customers
having banking relations with branches in the National Banking Group.
SBI provides a range of banking products through their vast network of branches in
India and overseas, including products aimed at NRIs. The State Bank Group, with
over 16,000 branches, has the largest banking branch network in India. The State
bank of India is the 10th most reputed company in the world according to Forbes.
The bank has 190 overseas offices spread over 36 countries. They have branches of
the parent in Colombo, Dhaka, Frankfurt, Hong Kong, Johannesburg, London and
environs, Los Angeles, Male in the Maldives, Muscat, New York, Osaka, Sydney,
and Tokyo. They have offshore banking units in the Bahamas, Bahrain, and
Singapore, and representative offices in Bhutan and Cape Town.
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A PROJECT REPORT ON”FINANCIAL MARKET AND INSTITUTIONS OF STATE BABNK OF INDIA”

State Bank of India was incorporated in the year 1955. The Bank traces their
ancestry to British India, through the Imperial Bank of India,to the founding in
1806 of the Bank of Calcutta, making them the oldest commercial bank in the
Indian Sub-continent. The Government of India nationalized the Imperial Bank of
India in the year 1955, with the Reserve Bank of India taking a 60% stake, and
name was changed to State Bank of India.In the year 2001, the SBI Life Insurance
Company was started by the Bank. They are the only Bank that have been
permitted 74% stake in the insurance business. The Bank's insurance subsidiary
'SBI Life Insurance Company' is a joint venture with Card if S.A in which Card if
holds 26% of the stake.
During the year 2005-06, the bank introduced 'SBI e-tax' an online tax payments
facility for direct and indirect tax payment. They also launched the centralized
pension processing. The Bank made a partnership with Tata Consultancy Services
for setup C-Edg Technologies and consulting services to the banking, financial
services and insurance industry. The bank was noted as 'The most preferred bank'
in a survey by TV 18 in association with AC Nielsen-ORG Marg. Also, the Bank
was voted as 'The most preferred housing loan provider' in AWAAZ consumer
awards for the year 2006.
In the customer loyalty survey 2006-07 conducted by 'Business World', the Bank
was ranked number one in all parameters of customer satisfaction, service
orientation, customer care/ call center, customer loyalty and home loans. SBI
Funds was judged 'Mutual fund of the year' by CNBC/TV-18/CRISL. The Bank
introduced new products and services such as web-based remittance, instant fund
transfer, online-trading and comprehensive cash management.
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A PROJECT REPORT ON” FINANIAL MARKET AND INSTITUTIONS OF STATE BANK OF INDIA”
During the year 2007-08, the Bank launched 965 branches all over the country.
They inaugurated a new state-of-the art Dealing Room with online connectivity to
all active forex intensive Branches at Corporate Centre in Mumbai. They launched
a new product, Construction Equipment Loan to cater to construction Companies.
During the year, the RBI transferred their entire shareholding in the Bank
representing 59.73% of the issued capital of the Bank to the Government of India.
The Bank acquired 92.03% of equity of Global Trade Finance Ltd. Consequently,
GTFL became a subsidiary of the Bank. They signed an MoU with the Indian
railways for installing ATMs at 682 railway stations. In March 2008, the Bank
opened their 10,000th branch and became only the second bank in the world to
have more than 10,000 branches after China's ICBC.
During the year 2008-09, the company launched Import factoring, a new product in
association with SBI Factors & Commercial Services Ltd. They increased the
number of branches for retail sale of gold coins from 250 to 518. Also, they re-
launched Gold Deposit Scheme at 50 branches to mobilize gold from domestic
market for deployment as metal loans to jewellers.
During the year, the Bank opened their 11,111th Branch at Sonapur (Kamrup
District) in Assam. They introduced three new products viz., SBI Special Home
Loan, SBI Happy Home Loan and SBI Lifestyle in response to the stimulus
package announced by the Government of India. Also, they entered into an
exclusive arrangement with Tata Motors for handling the booking process of Tata
'Nano' cars.
During the year, the Bank set up a custodial services company namely SBI
Custodial Services Pvt. Ltd., in joint venture with Societe Generale, France.
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IMS AFFILIATED TO UTKAL UNIVERSITY, BBSR

They signed letter of intent for setting up of joint venture company for
undertaking General Insurance Business. Also, they divested 10% equity stake in
its wholly owned subsidiary SBI Pension Fund Pvt. Ltd at cost in favour of its
subsidiaries. In October 2008, They signed a joint venture agreement with
Insurance Australia Group for undertaking General Insurance business. Also, they
signed a joint venture agreement with Macquarie Capital Group, Australia and
IFC, Washington for setting up an Infrastructure fund of USD 3 billion for
investing in various infrastructure projects in India.
During the year 2009-10, the Bank opened 1,049 branches. In July 2009, SBI
introduced 'SBI Loan to Affluent Pensioners' enabling the government pensioners
to avail personal loans upto Rs 3 lakh. During the year, the Bank designed a special
package, the Defence Salary Package, for personnel of the three Armed Forces i.e.
the Army, Navy and Air Force who maintain their Salary accounts with them. In
June 2009, the company increased their shareholding in Nepal SBI Bank Ltd to
55.02% and thus Nepal SBI Bank Ltd became a subsidiary of the Bank with effect
from June 14, 2009.
In May 2010, the Bank selected consortium of Elavon Incorporation, USA and
Visa International, USA as their joint venture (JV) partner for Merchant Acquiring
Business. They set up a wholly owned subsidiary, namely SBI Payment Services
Pvt Ltd for conducting Merchant Acquiring Business.
In August 2010, State Bank of Indore was amalgamated with the Bank as per the
scheme of amalgamation approved by the Central Board.
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During the year 2010-11, the Bank introduced 2 new products, namely 'Pushpa
Ullas' and 'Arthias Plus' on pilot basis. They made substantial progress in
establishing itself as a leading PE fund player of the country. Also, they signed a
Joint Venture agreement with State General Reserve Fund (SGRF) of Sultanate of
Oman, a sovereign entity, to set up a general purpose private equity fund with an initial
corpus of USD 100 million, expandable further to USD 1.5 billion.
During the year, the Bank opened 576 new branches besides merger of 470
branches of erstwhile State Bank of Indore. Also, they opened 14 foreign offices
during the year, taking the total to 156. In July 1, 2010, the Bank launched their
'Green Channel Counter' at select branches across the country.
In General Insurance business, the Bank launched limited operations in April 2010
for the Corporate and Mid Corporate customers based at Mumbai, and it was
expanded to six other major locations in July 2010. In the Retail segment, the Bank
launched their Long Term Home Insurance business at Mumbai in October 2010,
which was gradually extended to cover 56 RACPCs and RASMECCs. General
Insurance SME business was launched on a pilot basis in Mumbai and Chennai in
February 2011.
During the first quarter of the financial year 2011-12, the Government of India
issued the 'Acquisition of State Bank of India Commercial & International Bank
Ltd.
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IMS, AFFILIATED TO UTKASL UNIVERSITY, BBSR
vide notification dated July 29, 2011. Consequent to the said notification, the
undertaking of State Bank of India Commercial & International stands transferred
to and vest in State Bank of India with effect from July 29, 2011.
In 2012, State Bank of India signed a Preliminary Non-Binding Memorandum of

Understanding with Russian Direct Investment Fund (RDIF), to facilitate
advancing bilateral economic cooperation and trade between Russia and India
aimed at exploring investment opportunities in both the countries. State Bank of
India (SBI) also entered into an agreement with StarAgri Warehousing Ltd
(StarAgri), India's leading agri-services & solutions provider, for Warehousing
Receipt Financing and Collateral Management Services during the year under
review. The bank launched virtual debit cards to check online fraud and promote
ecommerce.
In 2013, State Bank of India (SBI) inaugurated its 2nd branch in China in Tianjin,
a major port city in northeastern China. The bank introduced smart pre-paid card
for students, blue collar workers.
In 2014, State Bank of In-dia launched new digital Online and self-service banking
solutions with support from Accenture. The bank also unveiled 6 digital branches.
In 2015, State Bank of India launched a RuPay Platinum debit card in association
with National Payment Corporation of India (NPCI). The bank also introduced
online facility for overdraft against FDs. SBI partners with Amazon. SBI entered
into a MoU with PayPal, an American online money transfer services provider
firm, for facilitating cross-border transactions. State Bank of India launched SBI
eforex.
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SBI also launched an initiative to provide doorstep services and expedite home
loans application process. State Bank of India jointly launched a cyber crime
awareness campaign.
On 26 March 2015, State Bank of India (SBI) announced that consequent upon the
promulgation of the Insurance Laws (Amendment) Ordinance, 2014 and
subsequently passed by both the houses of parliament, the Executive Committee of
the Central Board (ECCB) of the bank has decided to initiate the necessary action
as per JV agreement for dilution of SBI's stake in SBI General Insurance from 76%
to 51% with corresponding increase of stake of IAG from 26% to 49%, including
appointment of a valuer to facilitate valuation and price discovery.
On 31 March 2015, State Bank of India (SBI) announced that the Executive
Committee of the Central Board (ECCB) of the bank has authorised divestment of
SBI's stake in SBI Life Insurance Co. Ltd. by up to 10%.
The Committee of Directors for Capital Raising of the bank at its meeting held on
1 April 2015 considered and accorded approval to allot 10.04 crore equity shares
on preferential basis to Government of India (GoI) at an issue price of Rs 295.59
per share aggregating Rs 2969.99 crore.
29 September 2015 considered and accorded approval to allot 19.65 crore equity
shares on preferential basis to Government of India (GoI) at an issue price of Rs
274.37 per share aggregating Rs 5392.99 crore.
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On 21 December 2015, State Bank of India announced that the Committee of
Directors, duly authorized by the Board authorized the bank to raise up to Rs
12000 crore by way of issue of Basel III compliant Tier II bonds, at par, through
private placement.
State Bank of India and Reliance Industries Limited (RIL) signed the shareholders
agreement on 30 June 2016 for setting up Payments Bank. The Subscription and
Shareholders' Agreement was signed by RIL as promoter with a 70% equity
contribution and SBI as joint Venture partner with 30% equity contribution. The
Payments Bank will leverage SBI's nationwide distribution network and risk
management capabilities alongwith the substantial investments made by RIL in its
retail and telecom businesses.
On 4 July 2016, State Bank of India announced that it has sold 5% stake in
National Stock Exchange of India Limited (NSE) constituting 22.50 lakh equity
shares of NSE to Veracity Investments Limited, a Mauritius based FII, at Rs 4,050
per share for a total consideration of Rs 911.25 crore. Post this transaction, SBI
holds 5.19% stake in NSE while its subsidiary SBI Capital Markets Limited holds
another 4.33% in the NSE.
24 August 2016 authorized the bank to raise up to Rs 11100 crore Additional Tier
1 capital by way of issue of Basel III compliant Perpetual Debt instrument in USD
and/or INR, at par, through private placement to overseas and/or Indian investors.
Page|17
The Executive Committee of the Central Board (ECCB) of State Bank of India
(SBI) at its meeting held on 14 October 2016 approved to dilute up to 5% stake of
SBI in its subsidiary SBI Life Insurance Company Limited to a non-promoter
entity.
On 25 October 2016, SBI announced that it has issued and allotted 25,000 AT1
Basel III compliant Non-convertible, Perpetual, Subordinated, Unsecured Debt
instrument in the nature of debenture, of face value Rs 10 lakh each at par through
private placement bearing coupon at 8.39% p.a. payable annually with call option
after 5 years or any coupon payment date thereafter aggregating to Rs 2500 crore
in third tranche.
The Executive Committee of the Central Board (ECCB) of State Bank of India at
its meeting held on 9 December 2016 approved divestment of 3.9 crore equity
shares constituting 3.9% stake in SBI Life Insurance Company Ltd. at a price of Rs
460 per share, subject to all regulatory approvals.
On 17 January 2017, SBI announced that it has concluded the issue of USD 500
million Fixed Rate Senior Unsecured Notes having a maturity of 5 years at a
coupon of 3.25 percent payable semi-annually under Regulation-S. The bonds will
be issued through the bank's London Branch and listed on Singapore Stock
Exchange.
The Committee of Directors for Capital Raising of State Bank of India considered
and approved on 20 January 2017 by circulation the allotment of 21.07 crore
equity shares at an issue price of Rs 269.59 per share on preferential basis to
Government of India aggregating Rs 5680.99 crore.
Page|18

The Executive Committee of the Central Board of State Bank of India at its
meeting held on 15 March 2017 accorded approval for infusing additional capital
of up to Rs 1160.04 crore in credit card joint venture companies viz. SBI Cards &
Payment Services Ltd. and GE Capital Business Process Management Services
Ltd. through purchase of equity shares from GE Capital so as to increase the bank's
stake in both the companies to 74%.
SBI merged five of its associate banks viz. State Bank of Bikaner & Jaipur, State
Bank of Mysore, State Bank of Travancore, State Bank of Patiala and State Bank
of Hyderabad and Bhartiya Mahila Bank with itself with effect from 1 April 2017.
In February 2017, the Union Cabinet approved the acquisition by State Bank of
India of its subsidiary banks namely State Bank of Bikaner and Jaipur, State Bank
of Mysore, State Bank of Travancore, State Bank of Patiala and State Bank of
Hyderabad.
On 8 June 2017, State Bank of India (SBI) announced closure of qualified

institutional placement of equity shares. The bank success fraised about Rs
15000crore from issue of 52.21 crore equity shares at a price of Rs 287.25 per
share to qualified institutional buyers.
The Central Board of State Bank of India at its meeting held on 27 December 2017
accorded approval to raise Additional Tier 1 capital by way of issuance of Basel III
compliant debt instrument in USD and/or INR to the tune of Rs 8000 crore from
domestic/international market including rupee denominated Masala Bonds till 31
March 2018.
Page|19
IMS, AFFILIATED TO UTKAL UNIVERSIOTY, BBSR
The Executive Committee of the Central Board of State Bank of India at its
meeting held on 8 January 2018 approved long term fund raising in single or
multiple tranches up to USD 2 billion under Reg-S/144A, through a public offer
and/or private placement of senior unsecured notes in US Dollar or any other
convertible currency during FY 2018 and FY 2019.
The Executive Committee of Central Board of State Bank of India at its meeting
held on 17 January 2018 approval the proposal for issuance of long term bonds of
Rs 20000 crore for financing of infrastructure and affordable housing in domestic
and overseas market in FY 2018 and FY 2019.
Page|20

2.3 HISTORY OF 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.
1960 -
During this period, State Bank of Jaipur, State Bank of Bikaner, State Bank of
Indore, State Bank of Travancore, State Bank of Mysore, State Bank Patiala and
State Bank of Saurashtra became subsidiaries of the bank.
1962 -
The Bhor State Bank Ltd was Amalgamated with the Bank bring the total number
of minor State associated banks so amalgamated to five. A scheme for
amalgamation of the Bank of Aundh Ltd., was also approved. On 20th August, the
Unit Bank Ltd. Chennai was taken over by the Bank.
Page|21

1963 -
In october Branch in London become bankers to the Indian High Commission,

thereby taking over a function till then performed by the office of RBI. Of the
other business transacted by the Branch, an important aspect was medium term
loans mostly to Indian shipping
companies.
1969 -
On November 8th the Bank of Behar Ltd was amalgamated.
1972 -
A merchant banking division was set up in the central office to cater to

promotional needs of the corporate sector.
1977 -
During the year bank introduced the Perennial Pension Plan Scheme under which
if the depositors make a regular monthly payment of a fixed amount for a period of
84 to 132 months, they become eligible from the 86th and 134th months
respectively for getting a monthly pension of predetermined amount forever.
In order to meet all the developmental needs of the villages including their social
and cultural needs, the bank launched an integrated rural developement
programme, aimed at not only covering the credit needs of agriculture and
agricultural activities and village industries, but
also housing and Social activities.
Page|22
1980-
Bank introduced the cash Certificate Scheme under which deposit certificate are
issued for a fixed period on payment of the issue price specified for the respective
maturity period and the face value corresponding to the issue price plus interest
compounded at quarterly
intervals is paid on maturity. The certificates are issued for the face value of Rs
100, Rs 1000, Rs 10,000 and Rs 50,000 maturing after 29,65,84 and 120 months.
1982 -
The Non-Resident Investment Cell was set up, which had streamlined the working
operations of the non-resident investment sections at important centers.
1983 -
SBI launched self employment scheme, for providing self-employment to educated

unemployed youth. Educated unemployed youths are encouraged to undertake self-
employment ventures in industry, services and business.
1984 -
The bank provide need-based rehabitation assistance to large and medium sick
industrial units.
1985 -
During the year, company set up a data bank of sick units available for taken over
by healthy units.
Page|23

With effect from 26th August, the Bank of Cochin Ltd with 108 branches was also
amalgamated with the Bank.
(i) All shares in the Capital of the Imperial Bank of India was vested in the RBI.
The SBI was registered with an Authorised capital of Rs.20 crores, and an issued
and paid up capital of Rs.562,50,000 divided into 562,500 shares of Rs.100 each.
(ii) Every person who on the 30th June, 1955, was registered as a holder of shares
in the Imperial Bank of India was paid by the Reserve Bank of India.
44,37,500 No. of shares issued at a premium of Rs 160 per share.
1986 -
At the end of the year 324 sick units with an outstanding of Rs 1069 crores were
assisted. Of these, 107 units were considered viable and 60 from them were placed
under regular nursing programme.
On 1st August a new subsidiary named SBI Capital Market was functioning
independently, took up leasing business and certain other new services.
100,00,00 No. of shares issued at a prem. of Rs 160 per share.
1987 -
Up to the end of the year the bank had sponsored 30 Regional Rural Banks
covering 66 backward and underbanked districts in the country.
Page|24

In terms of deployment, the advances portfolio of overseas offices rose to Rs 5,767

crores. Investments in inter-bank money markets and also in prime securities
amounted to Rs 2,670 crores by the end of the year.
1988 -
During the year bank initiated UPTECH an Industrial Technology Group to direct
and guide programmes aimed at facilitating technology upgradation.
Also a scheme to develop enterpreneurship among woman under the name "Stree
Shakti" was launched. Several concessions in respect of margin and and rate of
interest have been built into the package. Three pilot programmes were launched at
Chennai, Calcutta, and Hyderabad.
On 20th September, the bank inaugurated `SBINET,'' an integrated communication

project aimed at improving customer service, operational efficiency and
administrative convenience. The network has been designed to handle voice, fax
data and manages through the trunk routes and exchanges in important centres.
The bank sponsored 30 RRB''s covering 66 divisions in the country. 74 branches

were opened raising the branch network to 2,306.
1989 -
SBICAP, in their capacity as Trustee and Manager of Mutual Fund, launched two
scheme viz., Mangnum Monthly Income Scheme 1989 and Magnum Tax Service
Scheme 1990.
Page|25

A PROJECT REPORT ON “FINANCIAL MARKET AND INSTITUTIONS OF STATE OF INDIA”
During the same period SBI in association with Morgan Stanley Asset
Management Inc. of USA, launched the India Magnum Fund.
1990 -
New products launched during the year included a Regular Income Scheme,
offering an assured return in excess of 12% and the first Pure Growth Scheme
aimed at capital appreciation. A Second offshore fund of US $ 12 million called
Asian Convertible and Indian Fund was launched in association with Asian
Development Bank, Manila.
During Kharif 1990, the bank introduced an agricultural credit card, known as SBI
Green Card to give greater liquidity and flexibility to farmers in procuring
agricultural inputs. The scheme was introduced on a pilot basis in 125 intensive
centre branches.
As at on 31st March, SBIMF had over 3,40,000 Indian investors and about Rs 475
crores by way of investible domestic funds.
50,00,000 No. of shares issued at a prem. of Rs 160 per share.
1991 -
During February the bank set up a new subsidiary called the SBI Factors and
Commercial Serviced Pvt. Ltd. for rendering factoring services to the industrial
and commercial units in Western India.
Page|26

A PROJECT REPORT ON”FINANCIAL MARKET AND INSTITUTIONS OF STATE BANK OPF INDIA”
1992 -
The bank sponsored 30 RRBs with a network of 3189 offices covering 102
backward and under banked districts of the country. A sum of Rs 15.25 crores was
contributed towards the share capital of the RRBs.
During the period bank intoduced `Stockinvest'' scheme. Also introduced a `Gyan
Jyoti'' that replaced earlier education loan schemes and offers substantial
augmented assistance to students pursuing higher studies. Moreover dedicated NRI
branches equipped with State-of-the-art technology was set up at Mumbai and
Delhi to cater to the special needs of NRI residents.
During the year as a part of its overseas expansion the bank established
representative office in Tashkent.
During December, the bank issued 124,000,000 equity shares of Rs.10 each for
cash at a premium of 90 per share of which 245,00,000 shares each were reserved
for allotment on a preferential basis to Indian Financial Institutions and Indian
Mutual Funds. Balance issued to the public.
Simultaneously it came out with another issue of 50,00,000 12% unsecured

redeemable floating rate bonds in the nature of promisory notes of the face value of
1000 each. Oversubscription upon a further amount of Rs 500 crores (in all Rs
1000 crores) was to be allowed. The face value of each bond would be redeemed at
par at the expiry of 10 years from the date of allotment.
Page|27

In the event that the State Bank decides to exercise its option to call up the bonds
they would be redeemed at the rate of 5% at the end of 5th year, at 3% at the end of
7th year and 1% at the end of 9th year.
It was proposed to issue 1200,00,000 right equity shares of Rs.10 each at a

premium of Rs.50 per share in the proportion of 3:5. Also another 120,00,000
equity shares of Rs.10 each were to be issued at a premium of Rs.50 per share to
employees on an equitable basis.
250 sick units with the bank were referred to the BIFR including 31 public sector
units. Approved rehabilitation packages being implemented in 85 units and 41
have been recommended to be wound up. The bank continued to be appointed as
the operating agency and rehabilitation packages were submitted to BIFR in 48
cases.
Equity shares subdivided. 1418,50,000 No. of Equity Shares of Rs. 10 each issued
at a prem. of Rs 90 per share to the public. Another 1319,78,726 shares of Rs 10
each offered at a prem. of Rs 90 per share on Rights basis and to employees.
1994 -
units. Approved rehabilitation packages implemented in 87 units.
1,80,463 No. of Shares kept in abeyance were issued.
Page|28
IMS , AFFILIATED TO UTKAL UNIVERSITY,BBSR

1995 -
units. Approved rehabilitation packages implemented in 112 units.
683 No. of shares kept in abeyance were allotted.
1996 -
On 3rd October the Bank Issued 261,45,000 GDRs amounting to 5,22,90,000

equity shares. 1 GDR is issued to 2 equity shares. The issue price of GDR was US
$ 14.15 per GDR.
1997 -
Shares issued to employees of the bank bearing distinctive numbers 46,26,00,001

to 47,46,00,000 will not be good delivery. The rights issue was for 12 crore equity
shares at a premium of Rs.50 aggregating Rs.720 crore in addition to a further
issue of 1.2 crore equity shares of Rs.10 at a premium of Rs.50 aggregating Rs.72
crore for State Bank employees. The price of the rights had been Rs.60 per share.
After SBI Capital Markets, Manila-based Asian Development bank will pick up 15
per cent equity stake in the new stock broking subsidiary of State Bank of India to
be made operational by mid-1997. The balance 85 per cent will be subscribed to by
SBI.
Page|29

SBI Securities Ltd the 100 per cent stockbroking subsidiary of SBI, has recently
received the much-awaited letter of incorporation from the Registrar of
Companies. Following this, both SBI and ADB will pick up their respective shares
in the new stockbroking firm. SSL will have an
equity base of Rs.50 crore.
The State Bank of India has tied up with GE Capital to float a venture in Mumbai.
State Bank signed the memorandum of understanding with GE Caps in March.
State Bank will tie up with either VISA or Mastercard or even both for the
franchise network. GE Caps through this joint venture will be imparting
technology, credit card expertise and payment card mechanism.
The Reserve bank of India has directed the SBI to set up a $300 million stand-by
facility for the Indian oil corporation.
State Bank of India (SBI) signed an agreement with the National Securities
Depository Ltd (NSDL) for dematerialisation of its shares. Besides, SBI has also
become an equity stake holder in NSDL to the extent of 4.76%.
SBI Commercial and International Bank, has become the country''s first public
sector bank to introduce optical disk (OD) facilities for data storage.
Page|30

A PROJECT REPORTN ON”FINANCIAL MARKET AND INSTITUTIONS OF STATE BANK OF INDIA”
1998 -
State Bank of India will kick-start its credit card business on July 1 by floating two
joint ventures with GE Capital. The largest financial intermediary in the country
will sign the joint venture agreement with GE Caps in the last week of January.
The State Bank of India on Jan 27 kicked off its foray into the payment cards
business with a joint venture agreement with US-based financial services giant,
General Electric Capital Corporation (GE Capital).
State Bank of India (SBI) on June 24 signed an exclusive agreement with the
world''s largest payment system - Visa International - for payment cards in India.
The agreement was signed in Mumbai between the SBI managing director, Mr O P
Sethia, and the general manager and executive vice president (South East Asia) of
Visa, Mr James G Murray.
1999 -
State Bank of India (SBI) has bagged the mandate to syndicate the $ 120 million
loan for the National Thermal Power Corporation (NTPC).
The State Bank of India (SBI) proposes to take up the life insurance and general
insurance business once the sector is opened up.
Page|31

State Bank of India has tied up with its associate banks to market the SBI Card.
The SBI has tied up with State Bank of Patiala in Chandigarh and State Bank of
Mysore in Bangalore to help market its credit card.
SBI proposes to introduce a value-added service for cardholders whereby the credit
card can also be used as an ATM card.
The State Bank of India will tie up with international investment banker Credit
SuisseFirst Boston and three domestic public sector banks to form a gold assaying
venture.
The State Bank of India (SBI) has decided to take over SBI Home Finance
(SBIHF), with its assets and liabilities. Having the largest stake, SBI has been
weighing various options for bailing out the joint venture company which has
slipped into huge losses.
The State Bank of India (SBI) has signed up with Central Depository Services (I)
(CDSIL) for the dematerialisation of its shares.
SBI shares have already been admitted as security with National Securities
Depository (NSDL). Besides, SBI also has a stake (Rs 10 cr) in the equity of
CSDL.
According to an agreement entered into with the development bank, State Bank of
India (SBI) was to reduce its stake in its investment banking subsidiary to below
50 per cent by March 31.
Page|32
IMS, AFFILIATED TO UTKAL UNIVERSITY,BBSR

State Bank of India (SBI) has taken the lead in `convenience banking'' by
becoming the first public sector bank to offer its `savings bank'' account holders
the benefits of fixed deposits (higher interest rates) and current accounts(overdraft
facility).
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.
SBI is also forming a subsidiary - SBI Gold and Precious Metals Pvt. Ltd. with 50
per cent equity participation.
Mr. Vepa Kamesam, Deputy Managing Director, has been appointed as Managing
Director with effect from 1st June.
SBI board cleared the setting up of a separate subsidiary for information

technology.
Page|33
A PROJECT REPORT ON “FINANCIAL MARKET AND INSTITUIONS OF STATYE BANK OF INDIA”
KC Raut has recently taken charge as general manager at State Bank of India,
Chennai.
The Bank has become the first public sector bank to offer fixed-rate home loans.
The State Bank of India has tied up with State Bank of Mysore to launch co-
branded credit cards as part its strategy to collaborate with associate banks to
expand its cardholder base.
Central Depository Services (India) Ltd has signed an agreement with State Bank
of India as its Depository participant.
A Stae Bank of India and the Exim Bank of the US have signed amemorandum of
understanding, involving $500 million, to support the small and medium-sized
ndian companies to purchase US goods and services.
Mr. Suresh Kumar Mehra, Workmen Directors, ceased to be a member of the

Central Board of the bank effect from October 1, due to his retirement at the close
of the business on September 30.
The Bank has launched an international credit cards for doctors, the frist of its kind
in the country, offering facilities including special discounts on medical equipment
and personal loans from GE countrywide.
The State Bank of India has introduced a new scheme to boost exports.
The CRISIL has assigned a triple-A (AAA) rating to the State Bank of India''s Rs
3,000 crore bonds programme.
The Bank have decided to close down its fully-owned foreign subsidiary - SBI
European Bank Ltd., in London.
Page|34
A PROJECT REPORT ON” FINANCIAL MARKET AND INSTITUTIONWS OF STATE BANK OF INDIA”
Mr. S. Mukerji, Managing Director, of the bank retired from the bank on 30th of
November.
State Bank of India Mutual Fund has launched the Magnum Gilt Fund, dedicated
to investing in government securities.
2001 -
The Bank has signed an MoU with Cardif S.A. for the bank''s life insurance
business.
The Bank has introduced Voluntary Retirement Scheme for eligible employees,
open from the 15th January 2001 to the 31st January 2001.
The Bank has incorporated a subsidiary `SBI Life Insurance Company Ltd.,'' for
doing life insurance business.
The Bank will install 10 more Automated Teller Machines in the north-eastern
region in addition to the one already commissioned at Guwahati.
State Bank of India launched three more ATMs i n Bangalore.
Mr Y Radhakrishnan has been promoted to the post of managing director of State

Bank of India.
SBI Cards has set up a special insurance cell in Ahmedabad for facilitating the
claims of SBI cardholders affected by the tragic earthquake in Gujarat.
SBI has assigned the Delhi-based HCL Com Net to provide it ATM teller inter-
connectivity which could involve investments running into several hundred crores.
Page|35

SBI chief general manager Madhav M Mehta, who is currently the operational
head in Gujarat, has been transferred to its corporate office in Mumbai as chief
general manager (CGM).
July 3- Announces the launch of the SBI International card and the SBI Global
Card for global travelers in India. SBI International cards and SBI Gold Cards
would be accepted at over 20 million Visa outlets worldwide and one lakh outlets
in India.
State Bank of India has embarked upon an ambitious Rs 800-crore technology

upgradation programme. The bank has appointed KPMG, a consultant in computer
technology, to provide inter connectivity networking to the computerised branches
and also to the ATMs across the
country enabling its customers to transact any kind of business from anywhere
State Bank of India was presented the award for JD Power Asia Pacific?s 2001
India Sales Satisfaction Index (SSI) and Consumer Financing Satisfaction (CFS)
State Bank of India has added three more ATMs to its network. The new ATMs
were installed at SBI''s Andheri (west),Goregaon (east),and Borivili (east) branches
on September 22
State Bank Of India (SBI) has informed BSE that Shri K.J.Udeshi, ED, RBI has
been nominated on the Central Board of the Bank as nominee of RBI in place of
Dr.Y.V.Reddy, w.e.f. September 22, 2001 under Sec.19(f) of SBI Act.
Page|36

A PROJECT REPORT ON”FINANCIAL MARKET AND INSTITUTION OF STATE BANK OF INDIA”
State Bank of India has slashed the interest rate on home loans by 0.5 per cent to
12 per cent, effective from September 15.
IN A significant move, the State Bank of India has decided to distance itself from
its subsidiaries - SBI Capital Markets, SBI Gilts, SBI AMC and State Bank of
Credit and Commerce International. They will have the autonomy, independent
chairmen and external executives at the
senior management level at market-related salaries. At present, the SBI chairman is
the ex-officio chairperson of all the subsidiaries, including the associate banks.
The new scheme will be aimed only at the award staff, a category that was
included with officers in the January 2001 voluntary retirement scheme.
SBI Cards on July 3, announced the launch of the SBI International card and the
SBI Global Card for global travelers in India.
- VRS implemented in which around 21,000 employees, including officers, were

permitted to retire
- The Bank has crossed another milestone by making a successful foray into
insurance. SBI is the only Bank to have been permitted a 74% stake in the
insurance business. The Bank''s insurance subsidiary, SBI Life Insurance
Company, a joint venture with the Bank holding 74% and Cardif S.A., the Joint
venture partner, the balance 26%, was incorporated to undertake life insurance and
pension business. Cardif S.A. is a wholly-owned subsidiary of BNP-Paribas, which
is the largest bank in France and one of the top ten banks in the world. Cardif S.A.
is thelargest bancassurance company in France.
Page|37

A PROJECT REPORT ON”FINANCIAL MARKET AND INSTITUTUIONS OF STATE BASNK OF INDIA”
- The bank''s efforts to establish a world -class credit information bureau in India
culminated in the successful setting up of the Credit Information Bureau (India)
Ltd., a joint venture of the Bank with HDFC Ltd., Dun and Bradstreet Information
Services India Pvt. Ltd. and Trans
Union International Inc.
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.
-E K Thakur resigns from Directorship of SBI.
-TCS bags order of Rs 500 crore from SBI.
-SBI has informed that the following change in Directors. 1. Shri A C Kalita,
Director on the Bank''s Central Board ceased to be a Director on the Board wef
May 13, 2002 on expiry of his term on May 12, 2002.2. Shri Y Radhakrishnan
Managing Director & GE (CB) has relinquished office of the Managing Director as
on June 30, 2002 and ceased to be Director on the Board wef July 01, 2002.
-State Bank of India has informed BSE that Mr D C Gupta IAS Secretary
(Financial Sector), Ministry of Finance, Department of Economic Affairs, New
Delhi has been nominated as Director on the Board of State Bank of India with
effect from July 17, 2002 vice Mr S K Purkayastha.
Page|38
IMS, AFFIOLIATED TO UTKAL UNIVERSITY, BBSR

-State Bank of India has informed BSE that Mr S Govindarajan, Managing

Director & GE (NB) has relinquished office of the Managing Director as on July
31, 2002 and ceased to be Director on the Board w e f August 01, 2002.Further Mr
P R Khanna, Director on the Bank''s Central Board ceased to be a Director on the
Board w e f August 20, 2002 consequent upon his resignation.
-State Bank of India has informed BSE that the Bank has decided to close SBI
Securities Ltd (SBISL), a subsidiary of the Bank, following a Directive in this
regard from the RBI.
-State Bank of India has informed that the Central Government appointed Mr A K
Batra, Deputy Managing Director, State Bank of India as Managing Director, State
Bank of India for the period from the date of his taking charge and upto August 31,
2003. Also, Mr P N Venkatachalam, Deputy Managing Director, State Bank of
India, has been appointed as Managing Director, State Bank of India for the period
from the date of his taking charge and upto March 31, 2004.
-State Bank Of India has informed that Shri Prithvi Raj Khanna and Shri Kumar
Bery have been duly elected as Directors under Section 19(c) of SBI Act at the
General Meeting of the -State Bank of India has informed that it has appointed Mr
Ananta Chandra Kalita, as a Director on the Central Board of the Bank from
amongst the employees of the Bank, who are workmen, for a period not exceeding
six months commencing from October 03, 2002 or until his successor is appointed
or till he ceases to be workmen employee of State Bank of India, or until further
orders, whichever event occurs earlier. shareholders of the bank held on September
09, 2002.
Page|39

-State Bank of India has informed BSE that Shri Janki Ballabh, Chairman has
relinquished office of Chairman at the close of business hours on his attaining
superannuation on October 31, 2002.
-State Bank of India has informed that Smt Vineeta Rai, Secretary (Banking &
Insurance), Ministry of Finance and Company Affairs, Department of Economic
Affairs (Banking Division), New Delhi has been nominated as Director of the
Board with effect from October 30, 2002.
-State Bank of India has informed that the Central Government, after consultation
with the Reserve Bank of India, appointed Shri A K Purwar, Deputy Managing
Director, State Bank as Chairman, State Bank of India from the date of his taking
charge of the post and upto May 31, 2003 i.e. date of his superannuation or until
further orders whichever is earlier. Shri A K Purwar assumed the charge of
Chairman, State Bank of India, on November 13, 2002.
2003- State Bank of India (SBI) and Maruti Udyog Ltd have announced a joint
initiative aimed at making car finance affordable to middle and lower middle class
customers. Customers will now have transparent car finance involving no hidden
charges and pre-closure penalties, and also get the dealers'' margins, Mr S.K.
Bhattacharya, Chief General Manager, SBI, told newspersons. "It will help both
the bank and Maruti to aggressively tap the Andhra Pradesh market," he said. SBI
offers finance facility even for lifetime tax, insurance and accessories of the
vehicle.
Page|40

A PROJECT REPORT ON”FINANCIAL MARKET AND INSTITUTIUONS OF STATE BANK OF INDIA”
- State Bank of India has informed that the Bank has appointed Shri Ananta
Chandra Kalita, Head Assistant, State Bank of India as a Director on the Central
Board of the Bank amongst the employees of the Bank, who are workmen for a
period of 3 years commencing from July 15, 2003 or until he ceases to be a
workmen employee of the Bank or until further orders, whichever is earlier
provided that he shall not hold the office continously for a period exceeding six
year.
- SBI group''s total profit identified at Rs 3,354 cr in ''02
- Mr. D C Gupta nominated as Director on the Board of SBI
- SBI introduces IT upgradation plan with KPMG help
- SBI Cards and Payment Services Private Ltd, the credit card subsidiary of the
State Bank of India, introduces two new schemes recently- SBI Advantage Card to
the bank''s fixed deposit customers and SBI International Card for its home loan
borrowers
- Launches a new credit appraisal system targeting the small and medium
enterprises (SME) for loans up to Rs 25 lakh
- SBI selects TCS to execute trade finance solution
- SBI and ICICI Bank among the top 100 banks in Asia in 2001 as per the study by
Asian Banker Journal
Page|41

2003
- Promotes three Chief General Managers (CGM) to the posts of Deputy Managing
Directors (DMDs). They are: A D Kalmankar, CGM in charge of Staff College of
Hyderabad, A K Das, CGM, Hyderabad; and R K Sinha, CGM, Chandigarh
- SBI appoints Mr. S K Bhattacharya as the new Chief General Manager for
Hyderabad circle
- Increases its equity stake in Discount and Finance House of India Ltd (DFHIL) to
51%
- Ties up with Maruti Udyog Ltd. (MUL) for car finance
- Receives permission from Insurance Regulatory and Development Authority

(IRDA) to sell healthcare products to individuals
- Increases its Equity Stake in DFHIL to 55.30%
- Starts new ''Plus schemes'' loans such as Justice Plus intended for the judges and
court employees, Police Plus for the police personnel, Teacher Plus for the
teaching community and Doctor Plus for the medical practitioners
- Receives RBI licence to set up offshore banking units (OBUs) in special

economic zones (SEZs)
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A PROJECT REPORT ON”FINANCIAL MARKET AND INSTITUTIONA OF STATE BANK OF INDIA”
- Launches SBI Bangalore card meant for a broad-based target audience in the 25
plus age group ranging from upwardly mobile professionals and middle class
segments
- SBI unveils Hyderabad card, an exclusive initiative for the citizens of Hyderabad
- Ananta Chandra Kalita ceases to be a Director of SBI
- Christens the tieup with Maruti Udyog Ltd. as SBI-Maruti Finance
- Orders For 1,500 ATMs With NCR Corporation
- Orange, the cellular service operator of the Hutch group for the Mumbai circle,
ties up with State Bank of India for prepaid card refill options
- Ropes in US-based consultant McKinsey & Co to undertake Business Process

Re-engineering (BPR) exercise for the bank
- Launches charter for Small Scale Industries (SSIs)
- NPA (Non Performing Assets) slashed to 4.5 pc, writes off Rs 4,000 crore worth
of assets
- Forays into stock market
- Stock price crosses the Rs 400 mark for the first time since listing on BSE
Page|43
IMS, AFFILIATED TO UTKAL UNIVERITY, BBSR

A PROJECT REPORT ON”FINANCIAL MARKET AND INSTITUIONS OF STATE BANK OF INDIA”
- Mr. A K Batra, Managing Director & Group Executive (Corporate Banking) of

the Bank ceases to be a Director on the Board with effect from July 8, 2003
- Plans a new scheme to attract Resurgent India Bonds (RIB)
- N S Sisodia, Secretary (Banking & Insurance), Ministry of Finance and Company

Affairs, Department of Economic Affairs (Banking Division), has been nominated
as a Director on the Board of State Bank of India w.e.f. July 11, 2003
- Mr. Ananta Chandra Kalita, Head Assistant, State Bank of India, appointed as a
Director on the Central Board of the Bank amongst the employees of the Bank
- Inks two important agreements with its employees'' unions and officers''
associations. According to the contract SBI''s staff will be having no rights to
interfere in bank''s computerisation plans
- SBI, AirTel launch mobility service at Rs 299
- Central government nominates Mr. Arun Singh as a director on the board of the
bank wef July 25, 2003 for a period of three years.
- State Bank of India along with ANZ Investment Bank have consummated 5 year
syndicate loan facility of $100 million to Indian Petrochemicals Corporation
(IPCL)
- Opens cheque clearing cente at Kolkata
Page|44

- Inks pact with Mahindra & Mahindra (M&M) for co-branded tractor
scheme SBI-Mahindra Tractor Plus
- Joins hands with Tractors and Farm Equipment Ltd (TAFE) for tractor loans
- Launches insurance scheme in Kerala
- Unveils new retail bank loan product Credit Khazana, which targets the bank''s
housing loan account holders
- Unveils online ticket reservation system ''e-Rail''
- Reserve Bank of India nominates Dr Rakesh Mohan, Deputy Governor, RBI, on

the Central Board of the bank
- Appoints Mr C. Narasimhan as the Chief General Manager of the SBI''s Kerala

Circle
-Unveils Credit Khazana, retail bank loan product, to target the bank''s housing
loan account holders
- MRO-TEK Ltd has secured State Bank of India''s order of Rs 15-crore to provide
networking solutions of 2Mbps and 64 Kbps high-end leased line modems for SBI
to connect more than 800 branches across the country.
Page|45

-SBI joins hands with LIC to dentify long-term investment proposals for LIC
-Tied with bajaj Auto to finance its two wheelers.
-SBI granted Rs 125-cr loan to Nethaji Apparel park to set up units and buy
machinery for the first batch of 54 garment plants in the 65-acre special apparel
park.
-The bank has tied up with TVS motor company to finance two wheeler loans
-Tied up with apollo hospital enterprise to finance for the hospital treatement.
-The company launched mobile pre-paid cards recharge facility at its ATM''s
-Tied up with ICICI Bank and HDFC for sharing ATM networks
2003-Bank has entered into MOU with both ICICI Bank and HDFC Bank for
sharing Bank's ATM Network with them on bilateral terms.
-The Central Government after consultation with the Reserve Bank of India ,
appointed Shri Chandan Bhattacharya, Deputy Managing Director State Bank Of
India as Managing Director State Bank Of India for the period from December 17,
2003 to January 31, 2005.
-The State Bank of India has announced a special package to BSNL employees by
allowing concessional interest rates for different types of loans to be availed by the
BSNL staff.
Page|46

2004
-Former KCCI President nominated to SBI Bangalore Local Board
-State Bank Of India has informed that Reserve Bank of India has nominated Shri
A V Sardesai, Executive Director, Reserve Bank of India on the Central Board of
State Bank of India vice Dr. Rakesh Mohan.
-SBI sets up ATM counter in Ernakulam
-Bahrain Monetary Agency (BMA) grants in-principle licence to Statte Bank of

India (SBI)
-SBI sets up India''s first drive-in ATM in Hyderabad
-State Bank of India has entered into an alliance with HDFC Bank for sharing
ATM networks to be operationalised from February 3, this year.
2004
-SBI unveils new branch in Manjeri
-Bank awarded special prize for lending to self help group run by women
-SBI unveils floating ATM
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A PROJECT REPORT ON”FINANCIAL MARKET AND INSTITUTIONS OF STATWE BANK OF INDIA”
-State Bank of India appointed six new Deputy Managing Directors on February
11, 2004. The new DMDs are: Mr T.S. Bhattacharya, CGM, Product Development
and Marketing, Mr M.M.Lateef, Managing Director, SBI Gilts, Mr Yogesh
Agarwal, CGM, Chandigarh, Mr Krishnamurthy, CGM, Madras LHO and Mr
R.Ramanathan, CGM, Technology and Mr Vijay Anand, CGM, Corporate
Account group. These top level appointments follow the appointment of the new
Managing Director for the bank, Mr Chandan Bhattacharya, in December.
-GAIL ties up SBI for e-banking system
-SBI join hands with Visa for travel card
-SBI enters into ATM sharing agreements with UTI Bank & HDFC Bank
-Signs a Memorandum of Understanding (MoU) under which the bank will provide
term loans to farmers for purchasing capital inputs from Jain Irrigation Systems
Ltd (JISL)
-Join hands with Siemens for financing the medical equipments sold by Siemens
-Joins hands with VST Tillers to launch SBI-VST Shakti, a new loan scheme for
farm mechanisation programme
-Unveils Vishwa Yatra foreign travel card, a prepaid card which offers the traveller
a convenient and secure way to carry cash
-Ties up with Same Deutz-Fahr India for tractor financing
Page|48

-In ally with Sikkim govt to beef up SMEs
-The government has chosen State Bank of India (SBI) for channelising
government credit to other countries which runs into billions of dollar
-SBI opens MICR cheque processing center
-Signs MoU with HMT Ltd. for financing their tractors
-State Bank of India deploys Flexcube as core banking solution at Frankfurt
-Mr Ashok K. Kini appointed as new Managing Director of State Bank of India
with effect from April 1, 2004 to December 31, 2005
-SBI unveils Foreign Travel card in Orissa
-ICICI Bank, SBI, LIC in pact for Rs 20,000-cr projects
-Reliance Info in ATM pact with SBI
-State Bank of India, Bangalore Circle, has announced its tie-up with New India
Assurance Company Ltd (NIAC), for distribution of NIAC''s general insurance
products in Karnataka
-State Bank of India joined the billion dollar club
-THE State Bank of India opened its 236th branch in the State at Tripunithura on
June 16
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A PROJECT REPORT ON”FINANCIAL MARKET AND INSTITUTIONA OF STATE BANK OF INDIA”
-SBI inaugurates first Internet shoppe in Kochi
-State Bank of India has opened a fully computerised branch at Karunagappally in

Kollam district
-L&T-John Deere Private Ltd has signed a memorandum of understanding (MoU)

with State Bank of India for tractor finance
-Buys 10% stake in Multi Commodity Exchange of India Ltd. (MCDEX) for Rs
2.1 crore
-SBI join hands with Hero Honda to unveil co-branded credit card
-State Bank of India launched its first mobile ATM for increasing the banking
convenience of its customers
-State Bank of India has signed a Memorandum Of Understanding (MOU) with the
Societe Generale Asset Management of France (SGAM) for inducting Societe
Generale Asset Management as a stake holding partner for SBI''s mutual fund arm,
SBI Fund Management Private Ltd (SBIFMPL)
-State Bank of India, (SBI) with a view to expand the ambit of its educational loan
schemes, has unveiled a unique educational loan scheme, christened "Nursing
Plus," for the nursing students of the country
-SBI forges alliance with Hero Honda
-SBI offers new scheme`School Plus'' for schools
Page|50

-SBI Card has launched ''Instant Card'' offering customers in need of instant credit
opportunity. With this, the customers will get an opportunity to get ready to use
credit card within a few hours of filing in their application form
-SBI selects Finacle for international ops
-SBI enters ATM tie up with Andhra Bank
-SBI join hands with LIC for funding infrastructure projects
-Tata Motors on December 7, 2004, signs an MoU with State Bank of India (SBI)
-SBI partners with Eicher Motors on December 27, 2004
2005
-Raj Travels joins hands with SBI for travel loans
-SBI opens branch at Vadakara
-SBI join hands with Apollo Health to offer loans
-SBI rolls out new loan scheme
-SBI opens first branch in Lakshadweep island of Kavaratti
-SBI enters into agreement for bilateral sharing of ATMs with PNB on May 10,
2005
Page|51
IMS, AFFILIATED TO UTKAL UNIVRSITY, BBSR

-State Bank of India and 8 associate banks have entered into an agreement with
Bharat Petroleum Corporation Ltd (BPCL) for enhancing card usage at fuel
stations
-SBI launches new mortgage loan scheme for traders
-SBI launches SBI card in Madurai
-SBI inaugurates RBO in Thrissur
-SBI signed a memorandum of understanding with Small Industries Development

Bank of India for co-financing small and medium enterprises in Andhra Pradesh,
Tamil Nadu, Uttar Pradesh, Jammu & Kashmir, Jharkhand, Delhi and Bihar
-SBI signs MOU with Corporation Bank for ATM sharing
-State Bank of India and Crisil have signed a memorandum of understanding under
which latter will assign ratings to small-scale industries that are borrowers of SBI
-NSIC join hands with SBI to offer credit to SSI
2006
-SBI teams up with Nihilent to unveil feedback system
-Bhatt to become SBI''s new MD
-State Bank of India (SBI) has informed that Shri. Yogesh Agarwal has been
appointed as Managing Director on the Board of the Bank with effect from
October 10, 2006 to the June 30, 2010
Page|52

A PROJECT REPORT ON “FINANCIAL MARKT AND INSTITUTIONS OF STATE BANK OF INDIA”
2007
-State Bank of India (SBI) has appointed Shri. S K Bhattacharya as Managing

Director on the Board of the Bank with effect from October 08, 2007 to the
October 31, 2010, as per the Notification dated October 08, 2007, by the
Government of India.
- The State Bank of India (SBI) has become the first foreign bank to set up a
branch in the Israel''s diamond exchange. Besides diamonds, they also see huge
potential in telecommunications, hi-tech, chemicals, textiles, agriculture and water
management, food processing, pharma and health care.
2008
-State Bank of India (SBI) has informed that the Government of India in pursuance
of clause (e) of Section 19 of the State Bank of India Act, 1955 (23 of 1955) has
nominated Shri. Arun Ramanathan, Secretary, Ministry of Finance, Department of
Financial Services, New Delhi as a Director on the Central Board of State Bank of
India with effect from January 18, 2008, vice Shri. Vinod Rai.
-State Bank of India (SBI) has informed that the Central Government, in
consultation with the Reserve Bank of India and in pursuance of clause (d) of
Section 19 of the State Bank of India Act, 1955 (23 of 1955), has nominated Dr.
(Mrs.) Vasantha Bharucha as a part-time non-official Director on the Central
Board of State Bank of India for a period of three years with effect from February
25, 2008, vice Shri Piyush Goel.
Page|53

- State Bank of India (SBI) has informed that the Central Government, in
consultation with the Reserve Bank of India and in pursuance of clause (d) of
Section 19 of the State Bank of India Act, 1955 (23 of 1955), has nominated Dr.
Rajiv Kumar as part-time non-official director on the Central Board of Directors of
State Bank of India for a period of three years with effect from September 08, 2008
or until further orders, whichever is earlier.
- State Bank of India (SBI) has signed a Joint Venture Agreement with Insurance
Australia Group to form a Joint Venture Company which will be engaged in
General Insurance business in India.
- State Bank of India has rolled out a micro insurance scheme ''Grameen Shakti'',
for its Self Help Group (SHG) members. The product was launched on Nov 26 at
the Tamil Nadu Agricultural University. The bank is hopeful to cover at least five
lakh SHG members by December 31.
-The company has issued rights in the ratio of 1:5 at a premium of Rs.1580/- Per
Share.
-State Bank of India Issues Rights in the Ratio of 1:5
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
page|54

A PROJECT REPORT ON” FINANCIAL MARKET AND INSTIYUTIONS OF STATE BANK OF INDIA”
- 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.
- Mr Arun Kumar Agarwal has taken over charge as General Manager at State
Bank of India, Kerala Circle. Until now, he has been General Manager at the
Lucknow Circle of the bank. Mr Agarwal is Certified Associate of Indian Institute
of Bankers and joined State Bank of India as a Probationary Officer in 1977. An
expert in credit and foreign exchange, he has held several assignments ranging
from Branch Manager to Regional Manager in the Patna and Delhi circles. He also
served in the bank''s foreign department at Kolkata handling investment of the
FCNB portfolio, derivatives and correspondent relations. He has headed the Pune
Module of the bank and has also served as the Deputy General Manager and
Business Head for Network-1 of the Mumbai Circle.
- State Bank of India (SBI) has signed a pact with Unique Identification Authority
of India (UIDAI) to work as a registrar for the UID registration of residents. It has
become the first bank to take up registration work for the UIDAI project. As a
registrar, SBI will capture through empanelled enrolment agencies, the biometric
characters such as finger prints, iris and so on and send the information to UIDAI.
- Stata Bank of India (SBI) has come up with an exclusive branch in Hyderabad,
for their ultra high networth individual (HNIs) which is by far is first of its kind in
the country.
Page|55

- State Bank of India launched a special concessional banking scheme for the Air
Force personnel.
- State Bank of India (SBI) has signed an agreement with Unique Identification
Authority of India (UIDAI) in order to work as a registrar for the UID registration
of residents.
2011
- 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.
- Witnessed a joint venture between the nation''s largest lender, State Bank of India
and the telecom lead, Bharti Airtel with an aim to provide the banking services
amongst the unbanked population of the country.
- SBI - Acquisition of SBICI Bank
- State Bank of India shifted from Varma Chambers, Fort, Mumbai to the
following address with effect from September 28, 2011.
Shares & Bonds Dept., State Bank of India,Corporate Centre,8th Floor, State Bank
Bhavan, Madam Cama Road, Mumbai - 400 021Telephone nos.: 022-22740841-48
(eight lines) Fax number(s): 022-22855348.
Page|56

2012
- State Bank of India signed a Preliminary Non-Binding Memorandum of

Understanding with Russian Direct Investment Fund (RDIF), to facilitate
advancing bilateral economic cooperation and trade between Russia and India
aimed at exploring investment opportunities in both the countries.
- India''s largest public sector lender, State Bank of India (SBI) has entered into an
agreement with StarAgri Warehousing Ltd (StarAgri), India''s leading agri-services
& solutions provider, for Warehousing Receipt Financing and Collateral
Management Services.
- SBI launched virtual debit cards to check online fraud and promote ecommerce
- SBI, ICICI Bank leading m-banking revolution in India. With the advent of
smartphones and 3G services, the Mobile Banking (m-Banking) services have been
fast catching up with Indian customers for conducting balance inquiries, account
transactions, utility payments, and other banking activities using a mobile handset
- India''s largest lender State Bank of India (SBI) has been planning to cut the
processing and conversion fee for home loans to leverage the approaching festival
season when Indians u2013
- India''s leading Public Sector lender the State Bank of India (SBI) is stepping up
efforts to expand its presence in the world''s second biggest economy with the
lender set to launch its second branch in China.
-SBI Issue of 5 year Bonds
-SBI inaugurates 2nd branch in Tianjin and China

2014
-SBI announces 150% interim dividend
-State Bank of In-dia launches new digital Online and self-service banking
solutions with support from Accenture
-State Bank of India unveils 6 digital branches
-SBI launches Tech Learning Centres (TLCs) for customers

-State Bank of India has splits its face value from Rs 10/- to 1/-
2015
-State Bank of India has launched a RuPay Platinum debit card in association with
National Payment Corporation of India (NPCI)
-SBI builds foundation for group CSR activities
-SBI introduces online facility for overdraft against FDs
-SBI partners with Amazon
-SBI entered into a MoU with PayPal, an American online money transfer services
provider firm, for facilitating cross-border transactions
- State Bank of India said it has launched SBI eforex
-SBI launched an initiative to provide doorstep services and expedite home loans
application process
-State Bank of India jointly launched a cyber crime awareness campaign
2016
-SBI opens first branch in South Korea.
-SBI launches new home loan plan for executives.
-SBI cuts home loan interest rate to 9.45 pct.
-Govt asks SBI to merge five associate banks.
Page|58

2.5 STATEMENT OF STATE BANK OF INDIA
Page|59

CHAPTER-3
CONCEPTUAL STUDIES
A PROJECT REPORT ON” FINANCIAL MARKET AND INSTITUITIONS 0F STATE BANK OF INDIA”
CONCEPTUAL STUDIES
To understand the structure and the importance of financial markets, we must first
understand their role in our economy. Now every economy has two basic sectors
when it comes to funds – savings and investment. Savings is what we refer to when
individual households save money. And investment is the capital that industries
require to start and run their businesses.
Now the economy must provide a link between savings and investments. One
obvious way to convert savings into investment is via banks. Alternatively, savings
can be turned into investments through financial markets. Households will use their
savings to buy financial instruments and commodities such as shares, stocks,
debentures etc. This is the whole concept of the financial market.
This way a financial market serves an allocative function and mobilize idle funds to
be put to more productive use. When the allocation of funds is done well, there are
some added benefits, such as
 The rate of return on their savings will be higher for householders, than what a
bank offers.
 The resources will be invested in firms that have high productivity and show
great promise in the economy.
Page|60

INTRODUCTION
A financial market is a market in which people trade financial securities and

derivatives at low transaction costs. Securities include stocks and bonds, and
precious metals.
The term "market" is sometimes used for what are more strictly exchanges,
organizations that facilitate the trade in financial securities, e.g., a stock exchange
or commodity exchange. This may be a physical location (such as
the NYSE, LSE, JSE, BSE) or an electronic system (such as NASDAQ). Much
trading of stocks takes place on an exchange; still, corporate actions (merger,
spinoff) are outside an exchange, while any two companies or people, for whatever
reason, may agree to sell stock from the one to the other without using an
exchange.
Trading of currencies and bonds is largely on a bilateral basis, although some
bonds trade on a stock exchange, and people are building electronic systems for
these as well, to stock exchanges.
Page|61

DEFINITION
A financial market is defined as a medium through which assets are traded,
enabling buyers and sellers to interact and facilitate exchanges. However, the term
can be used in a variety of different ways – it can refer physical places, virtual
exchanges or groups of people that are interested in making transactions.
SCOPE OF FINANCIAL MARKET

The financial market in India at present is more advance than many other sectors as
it became organized as early as the 19th century with the securities exchanges in
Mumbai. Ahmadabad and Kolkata . In the early 1960s, the number of securities
exchange in India became eight- including Mumbai, Ahmadabad and Kolkata.
Apart from these three exchanges, there was the Madras, Kanpur , Delhi,
Bangalore and Pune exchanges as well. Today there are 23 regional securities
exchanges in India.
The India stock market till date have remained stagnant due to the rigid economic
controls. It was only in 1991, after the liberalization process that the India
securities market witnessed a flurry of IPOs serially. The market saw many new
companies spanning across different industry segments and business began to
flourish.
The launch of the NSE (National Stock Exchange) and the OTCEI(Over the
Counter Exchange of India) in the mid 1990s helped in regulating a smooth and
transparent from of securities trading.
The regulatory body for the Indian capital market was the SEBI (Securities and
Exchange Board of India). The capital market in India experienced turbulence after
which the SEBI came into prominence. The market loopholes had to be bridged by
taking drastic measures.
Page|62

FEATURES OF FINACIAL MARKET
 Indian Financial Indises-BSE 30 Index, Various sectors indexes stock quotes

Sensex charts, bond prices, foreign exchange Rupee & Dollar Chart.
 Indian financial market news.
 Stock News – Bombay Stock Exchange., BSE Sensex 30 index S&P CNX-
Nifty, Company information , issues on market capitalization, corporate
earning statements.
 Fixed Income – Corporate Bond Prices, Corporate Debt details Debt trading
activities, Interest Rates, Money Market, Government Securities, Public
Sectors Debt , External Debt Service.
 Foreign investment –foreign Debt Database composed by
BIS,IMF,OECD,& world Bank, Investments India &Abroad
 Global Equity Indexes-Dow Jones Global indexes, Morgan Stanley Equity
Indexes
 Currency Indexes –FX & Gold Chart Plotter, J. P. Morgan currency Indexes
 National and Global Market Relations
 Mutual Funds
 Insurance
 Loans
 Forex and Bullion
Page|63

STRUCTURE
Page|64

TYPES OF FINANCIAL MARKET
CAPITAL MARKET
A capital market is a market for securities (debt or equity), where business
enterprises (companies) and governments can raise long-term funds. It is defined
as a market in which money is provided for periods longer than a year, as the
raising of short-term funds takes place on other market (e.g., the money market).
The capital market includes the stock market (equity securities) and the bond
market (debt). Financial regulators, such as the UK’s Financial services Authority
(FSA) or the U.S. Securities and Exchange Commission (SEC), oversee the capital
markets their designated jurisdictions to ensure that investors are protected against
fraud, among other duties.
Capital markets may be classified as primary markets and secondary markets. In

primary markets, new stock or bond issues are sold to investors via a mechanism
known as underwriting. In the secondary markets, existing securities are sold and
bought among investors or traders, usually on a securities exchange, over-the
counter, or elsewhere.
Page|65

The capital market is subdivided into:
PRIMARY MARKET
The primary market is that part of the capital markets that deals with the issuance
of new securities. Companies, governments or public sector institutions can obtain
funding through the sale of a new stock or bond issue. This process of selling new
issues to investors is called underwriting. In the case of a new stock issue, this sale
is an initial public offering (IPO). Dealers earn a commission that is built into the
price of the security offering, through it can be found in the prospectus. Primary
markets create long term instruments through which corporate entities borrow from
capital market.
Features of primary markets Are:
 The primary market is the market where the securities are sold for the first
time. Therefore it is also called the new issue market (NIM).
 In a primary issue, the securities are issued by the company directly to
investors.
 The company receives the money and issues new security certificates to the
investors.
 Primary issues are used by companies for the purpose of setting up new
business or for expanding or modernizing the existing business.
 The primary market performs the crucial function of facilitating capital
formation in the economy.
 The new issue market does not include certain other sources of new long
term external finance, such as loans from financial institutions. Borrowers in
the new issue market may be raising capital for converting private capital
into public capital; this is known as “going public”.
 The financial market assets sold can only be redeemed by the original
holders.
Page|66

Methods or Issuing Securities In the primary market Are:
 Public issuance, including initial public offering;

 Rights issue(for existing companies);
 Preferential issue.
SECONDARY MARKET:
The secondary market, also called the aftermarket and follow on public offering is
the financial market in which previously issued financial instruments such
as stock, bonds, options, and futures are bought and sold.[1] Another frequent usage
of "secondary market" is to refer to loans which are sold by a mortgage
bank to investors such as Fannie Mae and Freddie Mac.
The term "secondary market" is also used to refer to the market for any used
goods or assets, or an alternative use for an existing product or asset where the
customer base is the second market (for example, corn has been traditionally used
primarily for food production and feedstock, but a "second" or "third" market has
developed for use in ethanol production).
With primary issuances of securities or financial instruments, or the primary
market, investors purchase these securities directly from issuers such
as corporations issuing shares in an IPO or private placement, or directly from the
federal government in the case of the government issuing treasuries. After the
initial issuance, investors can purchase from other investors in the secondary
market.
The secondary market for a variety of assets can vary from loans to stocks,
from fragmented to centralized, and from illiquid to very liquid. The major stock
exchanges are the most visible example of liquid secondary markets - in this case,
for stocks of publicly traded companies. Exchanges such as the New York Stock
Exchange, London Stock Exchange, and NASDAQ provide a centralized, liquid
secondary market for investors who own stocks that trade on those exchanges.
Most bonds and structured products trade “over the counter,” or by phoning the
bond desk of one’s broker-dealer. Loans sometimes trade online using a Loan
Exchange.
Page|67

Functions of secondary market
(a) Providing Liquidity and Marketability to Existing Securities: The basic

function of a stock exchange is the creation of a continuous market where
securities are bought and sold. It gives investors the chance to disinvest and
reinvest. This provides both liquidity and easy marketability to already existing
securities in the market.
(b) Pricing of Securities: Share prices on a stock exchange are determined by the
forces of demand and supply. A stock exchange is a mechanism of constant
valuation through which the prices of securities are determined. Such a valuation
provides important instant information to both buyers and sellers in the market.
(c) Safety of Transaction: The membership of a stock exchange is well regulated

and its dealings are well defined according to the existing legal framework. This
ensures that the investing public gets a safe and fair deal on the market.
(d) Contributes to Economic Growth: A stock exchange is a market in which

existing securities are resold or traded. Through this process of disinvestment and
reinvestment savings get channelized into their most productive investment
avenues. This leads to capital formation and economic growth.
(e) Spreading of Equity Cult: The stock exchange can play a vital role in
ensuring wider share ownership by regulating new issues, better trading practices
and taking effective steps in educating the public about investments.
Page|68

Capital Market
Primary Market Secondary Market

 New stock or bond issue are sold to
investors .Often via a mechanism  Existing securities are sold and bought
know as underwriting. among investors or trades, usually on a
securities exchange, over –the counter, or
elsewhere.
 The main entities seeking to raise  The existence of secondary market

long term funds on the primary increase the willingness of investors in
capital market are governments primary market , as they know they are
(which may be municipal ,local or likely to be able to swiftly cash out their
national) and business enterprise investments if the need arises.
(Companies)
 Governments tend to issue only

bonds, whereas companies often
issue either equity or bonds.
 The main entities purchasing the

bonds or stock include pension
finds, hedge funds, sovereign
wealth funds, and less commonly
wealthy individuals and investment
bank trading on their own behalf.
MONEY MARKET:
The money market is a market for short-term funds, which deals in financial assets
whose period of maturity is up to one year. It should be noted that money market
does not deal in cash or money as such but simply provides a market for credit
instruments such as bills of exchange, promissory notes, commercial paper,
treasury bills, etc. These financial instruments are close substitute of money. These
instruments help the business units, other organizations and the government to
borrow the funds to meet their short-term requirement. Money market does not
imply ton any specific market place. Rather it refers to the whole networks of
financial institutions dealing in short-term funds, which provides an outlet to
lenders and a source of supply for such funds to borrowers. Most of the money
market transactions are taken place on telephone, fax or Internet. The Indian
money market consists of Reserve Bank of India, commercial banks, cooperative
banks, and other specialized Financial institutions. The Reserve bank of India is
the leader of the money market in India. Some Non-Banking Financial companies
(NBFCs) and financial institutions like LIC, GIC, UTI, etc. also operate in the
Indian money market.
Functions of money market
 It helps in effective implementation of the RBI's monetary policy.

 This market helps to maintain demand and supply equilibrium with regard to short-
term funds.
 It also meets the need for short-term fund requirement of the government.
 It helps in maintaining liquidity in the economy.
Money market instruments:
Difference between Money markets And Capital Markets:

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A PROJECT REPORT ON

“FINANCIAL MARKET AND INSTITUTION OF

A PROJECT REPORT SUBMITTED TO UTKAL UNIVERSITY IN PARTIAL

Master of Finance &Control

Under the guidance of :

EXTERNAL GUIDE INTERNAL GUIDE

MR.PRADEEP KU.DORA SITENDRA KU. BALIARSINGH

BRANCH MANAGER FACULTY OF FINANCE

STATE BANK OF INDIA INSTITUTE OF MEDIA STUDIES

Department Of Management and Finance

(AFFILIATED TO UTKAL UNIVERSITY)

That is to certify this project entitled “FINANCIAL MARKET AND

So, I Wish her a prosperous and a successful life in the future.

Place: BBSR Internal Guide

Mr. Sitendra ku.Baliarsigh

DECLARATION: PAGE .NO

1.2 OBJECTIVE OF THE STUDY

1.3 RESEARCH METHODOLOGY

1.4 LIMITATION OF THE STUDY

1.4 RESEARCH DESIGN

1.5 LITERATURE REVIEW

2.1 INTRODUCTION OF STATE BANK OF INDIA

2.2 BANK PROFILE

2.3 HISTORY OF STATE BANK OF INDIA

2.4 MISSION OF STATE BANK OF INDIA

2.5 VISION STATEMENT OF STATE BANK OF INDIA

3.3 SCOPE OF FINANCIAL MARKET AND INSTITUTION

3.4 FEATURES OF FINANCIAL MARKET

3.6 TYPES OF FINANCIAL MARKET

3.8 CERTIFICATE OF DEPOSIT(CD)MARKET

3.9 FINANCIAL INSTITUTION

3.10 INSTITUTIONAL INVESTOR

3.11 REGULATORY INSTITUTIONS

CONCLUSIONS 5.1 FINDING

Place:BBSR ROJALIN DAS

I would like to express my heartfelt in debtness and deep sense of gratitude to my

I express my deep since of gratitude to my faculty guide Mr. Sitendra Ku .

Place: BBSR ROJALIN DAS

According to the syllabus prescribed by IMS, UTKAL UNIVERSITY . We have

I hope this project done by me will meet the approval of teachers.

A PROJECT REPORT ON “FINANCIAOL MARKETS AND INSTITUTIONS OF STATE BANK OF INDIA”

A Market wherein financial instrument such as financial claims, assets and

1.2 OBJECTIVE OF THE STUDY

 Outline the participants in the financial markets.

IMS, AFFILIATED TO UTKAL UNIVERSITY, BBSR

A PROJECT REPORT ON”FINANCIAL MARKETS AND INSTITUTION OF STATE BANK OF INDIA”

1.3 RESEARCH METHODOLOGY

It has been defined also as follows:

1.”the analysis of the principles of methods, rules, and postulates employed by a

3.”the study or description of methods”.

Objectives of research methodology

IMS, AFFILIATED TO UTKAL UNIVERSITY, BBSR

A PROJECT REPORT ON”FINANCIAL MARKET AND INSTITUTIONS OF STATE BANK OF INDIA”

LIMITATION OF THE STUDY

1. Changing patterns .Boom-and –bust cycles may

A PROJECT REPORT ON”FINANCIAL MARKET AND INSTITUTIONS OF STATE BANK OF INDIA”

3. financial profession rely on historical data to construct

4. Infinite interactions. There are just too many

5. Specific time period. Financial markets are prepared

IMS, AFFILIATED TO UTKAL UNIVERSITY, BBSR

1.5 RESEARCH DESIGN

As core objective of the study is based on both primary data

A PROJECT REPORT ON”FINANCIAL MARKET AND INSTITUTIONS OF STATE BANK OF INDIA”

1. Descriptive Research design