MONEY AND BANKING (Part – I)

ICICI (Industrial Credit and Investment Corporation of India) was formed in 1955 at the initiative of the World Bank, the Government of India and representatives of Indian Industry. The principal objective was to create a development financial institution for providing medium and long-term project financing to Indian business. ICICI bank was incorporated in 1994 as a part of the ICICI group. ICICI bank is a leading private sector bank in India. In 1999, ICICI become the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the New York Stock Exchange. Rest are nationalized Banks. Dena Bank and Vijaya Bank were merged with Bank of Baroda while Corporation Bank was merged with Union Bank of India.

State Bank of India (SBI) was incorporated on 1 July 1955. The Government of India nationalized the Imperial Bank of India in the year 1955 with Reserve Bank of India taking a 69 % stake and name was changed to State Bank of India.

State Bank of India, a Fortune 500 company, is and Indian Multinational Public Sector Banking and Financial Service Statutory body head-quartered in Mumbai. State Bank of India is the largest banking and financial service organization in India which services over 5o crore customers through its vast network of 22,406 branches, 65,627 ATMs/CRM (as on 31 March, 2023.)

State Bank of India, a Fortune 500 company, is and Indian Multinational Public Sector Banking and Financial Service Statutory body head-quartered in Mumbai. State Bank of India is the largest banking and financial service organization in India which services over 5o crore customers through its vast network of 22,406 branches, 65,627 ATMs/CRM (as on 31 March, 2023.)

As per the report released by S & P Global Market Intelligence in April 2020, India had only one bank in the top 100 global bank list (by total assets). State Bank of India (SBI) at 55th position was the only Indian Bank in that list. SBI was at 48th rank in April, 2023 list. In April, 2024 list, SBI's rank is 47th among World's 100 largest banks while India-based HDFC Bank Ltd. is a new entrant in this list, landing in 74th position, after its assets increased due to merger with its parent company. Hence, at present both (b) and (c) are correct.

In a significant move to help the farmers of Uttar Pradesh, the State Bank of India and NABARD have had jointly established a 'Farmers Club' (Kisan club). The 'Club' aims at enhancing the bargaining power of the farmers and artisans besides reaching out to the rural masses.

Pratip Chaudhuri was the SBI's Chairman from 7 April 2011 to 30 September 2013. At present, Dinesh Kumar Khara is the Chairman of SBI. He assumed office in October, 2020 and set to retire on 28 August, 2024. FSIB on 29 June, 2024 selected Challa Sreenivasulu Setty to succeed him as new SBI's Chairman.

Chairmen and other top officials of public sector banks are selected by the Bank Board Bureau (BBB-now replaced by FSIB). The Bureau started functioning from April 01, 2016 as an autonomous recommendatory body. The Chairman of BBB (now FSIB) is appointed by the Central Government. Financial Services Institutions Bureau (FSIB) has been constituted by the Central Government in place of BBB with effect from 1 July, 2022. BBB (now FSIB) is tasked to improve the governance of public sector banks, recommend selection of top-level posts of public sectors banks and financial institutions and to help PSBs, FIs and PSIs in developing business strategies and capital raising plans.

Chairmen and other top officials of public sector banks are selected by the Bank Board Bureau (BBB-now replaced by FSIB). The Bureau started functioning from April 01, 2016 as an autonomous recommendatory body. The Chairman of BBB (now FSIB) is appointed by the Central Government. Financial Services Institutions Bureau (FSIB) has been constituted by the Central Government in place of BBB with effect from 1 July, 2022. BBB (now FSIB) is tasked to improve the governance of public sector banks, recommend selection of top-level posts of public sectors banks and financial institutions and to help PSBs, FIs and PSIs in developing business strategies and capital raising plans.

On 15 September, 2015, State Bank of India in a strategic partnership with 7 of India's biggest e-commerce companies has started the 'Simply click' credit card scheme. These 7 e-commerce companies are - Amazon India, Book My Show, Cleartrip, Fabfurnish, Food Panda, Lenskart and Ola Cabs.