State Bank of India (SBI)

India’s largest bank began as an 1806 loan office. Two centuries and many mergers later, it serves more people than most countries hold.

SBI

State Bank of India. The country’s largest bank, by assets.

D-SIB

Domestic Systemically Important Bank. One considered “too big to fail.”

NPA

Non-Performing Asset. A loan that has stopped generating repayments.

From an 1806 Loan Office to India’s Biggest Bank

Three colonial banks became one. That one became a nation’s bank. Two centuries of mergers later, it still leads every rival by scale.

What Are the Key Milestones?

• 2 Jun 1806: The Bank of Calcutta is founded, SBI’s earliest root.
• 27 Jan 1921: The Bank of Calcutta, Bank of Bombay, and Bank of Madras merge into the Imperial Bank of India.
• 1 Jul 1955: The Imperial Bank is renamed State Bank of India, under the State Bank of India Act, 1955.
• 2008: The Government of India takes over RBI’s controlling stake in SBI.
• 1 Apr 2017: Five associate banks and Bharatiya Mahila Bank merge into SBI.
• May 2026: SBI becomes India’s 4th most valuable company, by market capitalisation.
• 7 Aug 2026: SBI reports record Q1 FY27 results, and its Chairman outlines new growth targets.

From Presidency Banks to One Bank

• SBI traces its roots to the Bank of Calcutta, founded on 2 June 1806.
• The Bank of Calcutta, Bank of Bombay, and Bank of Madras were the three colonial “Presidency Banks.”
• They merged on 27 January 1921, forming the Imperial Bank of India.

Becoming SBI, and Ownership Today

• Under the State Bank of India Act, 1955, the RBI took a controlling stake in the Imperial Bank of India.
• It was renamed State Bank of India on 1 July 1955.
• In 2008, the Government of India took over RBI’s stake in SBI. This removed a conflict of interest, since RBI also regulates banks.
• SBI is headquartered in Mumbai. As of 2026, the Government of India owns about 55.5% of the bank.
• SBI is India’s largest bank, with about 23% market share by assets, and 25% share of loans and deposits combined.

The 2017 Mega-Merger

• On 1 April 2017, five associate banks and Bharatiya Mahila Bank merged into SBI.
• The associates were the State Banks of Bikaner & Jaipur, Hyderabad, Mysore, Patiala, and Travancore.

Scale, Reach, and Subsidiaries

• SBI runs over 23,000 branches, and more than 63,000 ATMs, across India.
• It serves over 500 million customers.
• Its subsidiaries include SBI Life Insurance, SBI Mutual Fund, SBI Cards and Payment Services, and SBI General Insurance.
• The RBI classifies SBI as a Domestic Systemically Important Bank, alongside HDFC Bank and ICICI Bank. These are banks considered “too big to fail.”
• See SIDBI for how a specialised public-sector lender compares to a full-scale bank like SBI.

A Real Conflict-of-Interest Fix

SBI’s 1955 renaming didn’t fully separate it from its regulator. The RBI held a controlling stake until 2008, when the government took that stake over instead — a real conflict-of-interest fix, not just a rebrand.

Growth Through Continuous Absorption

• Even after nationalisation, SBI kept growing mainly by absorbing other banks.
• Banks from Bihar, Lahore, Gwalior, and Cochin were each folded in, at different points in its history.
• SBI’s scale gives it outsized influence on Indian banking benchmarks. Its own lending and deposit rates often set the pace other banks follow.

Exam Point of View

UPSC CSP 2018 — Where SBI’s Renaming Fits Among Four Events

• This question tested the chronological order of four historic events, including SBI’s own 1955 renaming.
• Correct order: Air India’s 1953 nationalisation, then SBI’s 1955 renaming, then Kerala’s 1957 communist government, then Goa’s 1961 liberation.
• View this question on the full paper →

Current Affairs

SBI Becomes India’s 4th Most Valuable Company

In May 2026, SBI became India’s 4th most valuable company, by market capitalisation, surpassing TCS. The jump followed record Q3 FY26 results: net profit of ₹21,028 crore, up 24.5% year-on-year.

The Chairman’s Growth Targets, and Record Q1 FY27 Results

• On 7 August 2026, SBI Chairman C.S. Setty said the bank expects to raise $10 billion through FCNR(B) deposits from overseas Indians. It had already raised $6 billion.
• Setty also said SBI targets 14-15% credit growth, for FY27.
• SBI’s Q1 FY27 net profit rose 10.23% year-on-year, to ₹21,121 crore.
• Total business crossed ₹110 lakh crore. Deposits stood above ₹60 lakh crore, and advances above ₹50 lakh crore.
• Its gross NPA ratio improved to 1.47%, its lowest in over two decades.