At a glance
State Bank of India is India's largest commercial bank and the biggest public sector bank. It traces its roots to the three Presidency Banks of the 19th century, which became the Imperial Bank of India, and was turned into SBI by an Act of Parliament in 1955. The RBI treats it as the most systemically important bank in the country.
Key facts
- Founded as SBI: 1 July 1955, under the State Bank of India Act, 1955
- Predecessor: Imperial Bank of India (1921)
- Headquarters: Mumbai
- Chairman: C. S. Setty (since 28 August 2024, three-year term)
- Ownership: majority owned by the Government of India
- D-SIB status: Bucket 4, additional CET1 of 0.80% of risk-weighted assets (RBI 2025 list)
- Total business (deposits plus advances): about ₹110 lakh crore at end-June 2026
- Associate banks merged: 1 April 2017 (five associates plus Bharatiya Mahila Bank)
- Award: Global Finance's World's Best Consumer Bank 2026 (second year running)
How it works
SBI is a commercial bank like any other, but its size and reach give it special roles: it is the government's main banker for many transactions and runs the largest branch network in the country.
Roots:
| Year | Bank |
|---|---|
| 1806 | Bank of Calcutta (later Bank of Bengal) |
| 1840 | Bank of Bombay |
| 1843 | Bank of Madras |
| 1921 | The three merge into the Imperial Bank of India |
| 1955 | Imperial Bank becomes SBI |
The 1955 conversion followed the All India Rural Credit Survey Committee (A. D. Gorwala), which wanted a state-backed bank to spread credit to rural India.
Associates: The SBI (Subsidiary Banks) Act, 1959 brought eight state banks under SBI as associates. State Bank of Saurashtra (2008) and State Bank of Indore (2010) were merged first. On 1 April 2017 the remaining five (Bikaner & Jaipur, Hyderabad, Mysore, Patiala, Travancore) and Bharatiya Mahila Bank were merged.
Timeline
- 1921: Imperial Bank of India formed
- 1955: SBI created (1 July)
- 1959: Associate banks brought under SBI
- 2017: Five associates and Bharatiya Mahila Bank merged (1 April)
- 2024: C. S. Setty becomes chairman (28 August)
Recent developments
- 17 Oct 2026: SBI was named World's Best Consumer Bank 2026 and Best Bank in India 2026 by Global Finance (New York); Chairman C. S. Setty received the awards in Bangkok on the sidelines of the IMF–World Bank Annual Meetings.
Exam traps
- SBI was not nationalised under the 1969 or 1980 bank nationalisation; it was created by its own Act in 1955.
- The Imperial Bank was formed in 1921, not 1935 (1935 is when the RBI started).
- SBI's D-SIB buffer is 0.80% (bucket 4); HDFC Bank is bucket 2 (0.40%) and ICICI Bank bucket 1 (0.20%).
- SBI's chairman is selected through the FSIB process and appointed by the government, not the RBI.
Quick check
- Q: On what date was SBI established? A: 1 July 1955.
- Q: Which bank was SBI created from? A: The Imperial Bank of India.
- Q: Who is SBI's chairman as of October 2026? A: C. S. Setty.
Sources
- https://rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=61729
- https://www.outlookbusiness.com/news/government-appoints-cs-setty-as-sbi-chairman-replacing-dinesh-khara
- https://www.businesstoday.in/india/story/rs200-lakh-crore-business-possible-by-2030-sbi-chief-predicts-ahead-of-platinum-jubilee-550903-2026-08-24
- https://sbi.co.in/web/about-us/about-us
In the news
Every time this topic has appeared in our current affairs, newest first:
- Week of 15–21 October 2026SBI named "World's Best Consumer Bank 2026" by Global Finance