State Bank Of India



The History of State Bank Of India dates back to the first decade of the nineteenth century with the setting up of Bank of Calcutta in Calcutta on 2 June 1806.After three years it was renamed as Bank Of Bengal (2 January 1809).On 15th April 1840, the Bank Of Bombay was initiated and on 1st July 1843, the the Bank of Madras was established. The integration of the three banks resulted in the creation of Imperial Bank of India on 27th January 1921.

Structure and Organization
The Banks Corporate Office is located at Mumbai. Its domestic operational area is divided into 14 Circles, each with one Local Head Office and a few Zonal and Regional Offices. The Bank is present not just in the major metropolises of India but has wide reach in the villages of India. The Bank's top management consists of the Chairman, group executives for National Banking Group, Corporate Banking Group, International Banking Group and Associates & Subsidiaries, and four staff functionaries in charge of finance, credit, human resources & technology management and inspection & audit.

Three Strategic Business Units (SBUs) under the Corporate Banking Group have been set up by SBI to pay attention to big corporate customers. Distinguishing features of the SBUs are assimilation of operational planning with operations within each SBU, an alert delivery system with suitable specialist inputs and focused attention on profitability.

The staff and functionaries at various levels have been delegated higher financial powers to ensure quicker decision making in credit areas and disposal of a large number of credit proposals at operating units' level. A committee approach has been adopted, both at the apex and circle levels, for sanction of large advances and loans. Keeping this in mind Central Office Credit Committee and Circle Credit Committees have been set up to ultimately ensure faster delivery. Credit and systemic risk processes have thus accordingly been restructured. Simplified and concise credit appraisal formats have been designed to ensure improvement in the quality of credit decisions, better quality of assets and reduction of Non Performing Assets or NPAs.

Transformation In SBI

The SBI has undergone major transformation in the recent years. The bank has ventured into new areas of business like Pension Funds, General Insurance, Custodial Services, Private Equity, Mobile Banking, Point Of Sale, Merchant Acquisition, Advisory Services, and Structured Products etc. The bank forsees tremendous growth potential in all these areas.

The bank has made forays into the rural banking with state of the art technology. The bank has outlaid an ambitious plan to expand rural banking to 100,000 villages in the next few years.

The bank has ambitious plans to focus on the high end market to support India's increasing mid/large Corporate with a wide range of products and services. The bank is consolidating its global treasury operations and diversifying into structured products and derivative instruments. At present SBI provides the largest amount of infrastructure debt and the bank is the largest provider of commercial borrowings in the country.SBI is a Fortune 500 company.

The Bank is in the process of expanding its base overseas. Currently it has 82 offices abroad spread over 32 countries. The seven subsidiaries of SBI are SBI Capital Markets, SBICAP Securities, SBI DFHI, SBI Factors, SBI Life and SBI Cards.

Indian Political System



India is a Sovereign, Secular, Democratic Republic with a Parliamentary form of Government. The Constitution was adopted by the Constituent Assembly on 26th November 1949 and came into force on 26th November 1950. The Constitution advocated the trinity of justice, liberty and equality for all the citizens. The Constitution was framed keeping in mind the socioeconomic progress of the country. India follows a parliamentary form of democracy and the government is federal in structure.

In Indian political system, the President is the constitutional head of the executive of the Union of India. The real executive power is with the Prime Minister and the Council of Ministers. According to the Article 74(1) of the constitution, the Council of Ministers under the leadership of the Prime Minister is responsible to aid and assist the President in exercising the Presidents function. The Council of ministers is responsible to the Lok Sabha, the House of People. In states the Governor is the representative of the President, though the real executive power is with the Chief Minister along with his Council of Ministers.

For a given state the Council of Ministers is collectively responsible for the elected legislative assembly of the state. The Constitution administrates the sharing of legislative power between Parliament and the State Legislatures. The Parliament has the power to amend the Constitution.

President of India
The President of India is the constitutional head of India and is the supreme commander of the nation’s armed forces. The President is elected by members of an Electoral College consisting of elected members of both the Houses of Parliament and Legislative Assemblies of the states, with suitable weightage given to each vote. His term of office is for five years. Among other powers, the President can proclaim an emergency in the country if he is satisfied that the security of the country or of any part of its territory is threatened by the following situations. A war or external aggression, an armed rebellion within the country and collapse of state machinery in terms of economic and political crisis. Hence when there is a failure of the constitutional machinery in a state, the President can assume all or any of the functions of the government of that state.

Vice-President
The Vice-President of India is elected by the members of an electoral college consisting of members of both Houses of Parliament. The method of electing the Vice President is the system of proportional representation by means of a single transferable vote. He like the President holds office for five years. The Vice-President also happens to be Ex-officio Chairman of the Rajya Sabha and presides over its proceedings.

Council of Ministers
The Council Of Ministers is the supreme governing body in the country and is selected from the elected members of the Union Government. The Council of Ministers comprises of Cabinet Ministers, Minister of States and Deputy Ministers. Prime Minister heads the Council of Ministers and communicates all decisions of the Council of Ministers relating to administration of affairs of the Union and proposals for legislation to the President. Generally, each department has an officer designated as secretary to the Government of India to advise the Ministers on policy matters and general administration. The Cabinet Secretariat has an important harmonizing role in decision making at the highest level and operates under the bearing of the Prime Minister.

Parliament
The Parliament is the legislative arm of the Union. It consists of the President, Rajya Sabha or the Upper House and Lok Sabha or the Lower House. All bills to be made into law require the consent of both the houses of parliament. However, in case of money bills, the Lok Sabha is the supreme authority.

Rajya Sabha
The Rajya Sabha consists of not more than 250 members. Of these, 233 represent states and union territories and 12 members are nominated by the President. Elections to the Rajya Sabha are indirect. Members to the Rajya Sabha are elected by the elected members of Legislative Assemblies of the concerned states. The members of the Upper House put forth the interests of their respective state in the Parliament. The Rajya Sabha is not subject to dissolution in contrast to the Lok Sabha and one third of its members retire every second year.

Lok Sabha
The Lok Sabha is composed of representatives of the people chosen by direct election on the basis of universal adult franchise. As of today, the Lok Sabha consists of 545 members with two members nominated by the President to stand for the Anglo-Indian Community. Unless dissolved under circumstances like failure of the leading party to prove clear majority or a no-confidence motion, the term of the Lok Sabha is for five years.

State Governments
The system of government in states closely resembles that of the Union. In the states as well there are two major governing bodies - the legislative assembly and the legislative council. For the Legislative assembly direct elections are held and the political party receiving the majority votes forms the Government in the state. There are 28 states and seven Union territories in the country. Union Territories are administered by the President through a Governor or administrator appointed by him. Till 1 February 1992, the Union Territory of Delhi was governed by the Central government through an Administrator appointed by the President of India. Through a Constitutional amendment in Parliament, the Union Territory of Delhi is called the National Capital Territory of Delhi from 1 February 1992 onwards. General elections to the Legislative assembly of the National Capital Territory were held in November 1993. Since then after every five years the state underwent general elections maintaining the democratic process in Delhi.

Political Parties In India
In India a recognized political party is categorized either as a National Party or a State Party. If a political party is recognized in four or more states and is either the ruling party or is in the opposition in these states, it is considered as a National Party. The Congress, Bharatiya Janata Party, Janata Dal, Communist Party of India and Communist Party of India (Marxist) are the prominent National Parties in the Country. Some of these parties have existed before the independence of the country while few of these emerged after political dynamism flourished in the country in post independent years.

Telugu Desam in Andhra Pradesh, Asom Gana Parishad in Assam, Jharkhand Mukti Morcha in Bihar, Maharashtra Gomantak Party in Goa, National Conference in Jammu and Kashmir, Muslim League in Kerala, Shiv Sena in Maharashtra, Akali Dal in Punjab, All-India Anna Dravida Munnetra Kazhagam and Dravida Munnetra Kazhagam in Tamil Nadu, Bahujan Samaj Party and Samajwadi Party in Uttar Pradesh and All-India Forward Block in West Bengal are the prominent state parties which are the major political players in their respective states. In fact in most of the states where the regional parties have come to the fore understanding the nuisance of their respective state better, there the scope of National parties emerging victorious is barely present.

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