SBI creates history. Know when and how this bank was founded

The State Bank of India (SBI) has set several records. It has become the second largest bank in the country, surpassing ICICI Bank in market cap. Last week, SBI reported strong results, which has led to a meteoric rise in its stock.

On Thursday, SBI shares rose 0.77 percent to close at ₹1,192. During trading, the stock reached ₹1,203. In the past five days, SBI shares have risen 11 percent, setting a new all-time high.

With this surge, SBI's market capitalization has reached ₹11.01 lakh crore. SBI has achieved a significant milestone by becoming the country's fourth-largest company by market cap. It has surpassed ICICI Bank and Tata Consultancy Services (TCS) in market cap. Reliance Industries, HDFC Bank, and Bharti Airtel now surpass SBI in market cap.

Learn about SBI's history

In a way, SBI has created history. Currently, SBI has over 23,000 branches across the country. The bank's history dates back nearly 200 years. The State Bank of India was founded in the first decade of the 19th century. The date was June 2, 1806, and on this day, it came into existence in Kolkata as the Bank of Calcutta. At that time, the country was under British rule. Approximately three years after its inception, the bank received its charter and, on January 2, 1809, its name was changed to Bank of Bengal. This series of changes did not stop there, and its name continued to change.

This is how the Imperial Bank of India was formed

After receiving the name "Bank of Bengal" in 1809, the banking sector in the country began to experience a boom in the years that followed. It was April 15, 1840, when the Bank of Bombay was founded in Bombay, and three years later, on July 1, 1843, the Bank of Madras came into existence.

How the SBI was formed after independence

It is noteworthy that the Bank of Bengal, the Bank of Bombay, and the Bank of Madras were all granted the right to print and issue currency in 1861, and even after the merger, this work continued through the Imperial Bank of India. After India gained independence, the work of the Imperial Bank of India continued even after the liberation from British rule, and it even saw an expansion. In 1955, the Reserve Bank of India (RBI) acquired the Imperial Bank of India under a parliamentary act, and its name underwent another major change.

On April 30, 1955, the Imperial Bank was renamed the State Bank of India (SBI).

Following the RBI's new name, SBI was officially established on July 1, 1955. The first bank account was opened with SBI on the same day. This resulted in the conversion of Imperial Bank of India's 480 offices across the country into SBI offices. These included branch offices, sub-branch offices, and three local headquarters. Since then, the banking sector in India has continued to grow.

Starting before independence and receiving its name after independence, SBI's scope has only expanded over time. In 2017, State Bank of Bikaner and Jaipur (SBBJ), State Bank of Mysore (SBM), State Bank of Travancore (SBT), State Bank of Patiala (SBH), and State Bank of Hyderabad (SBH) merged into SBI.

SBI was officially established on July 1, 1955, after being renamed by the RBI. The first bank account was also opened on the same day. This resulted in the conversion of 480 offices of the Imperial Bank of India across the country into SBI offices. These included branch offices, sub-branch offices, and three local headquarters. Since then, the banking sector in India has continued to grow.

Summary 

Starting before independence and receiving its name after independence, SBI's scope has expanded over time. In the year 2017, State Bank of Bikaner & Jaipur (SBBJ), State Bank of Mysore (SBM), State Bank of Travancore (SBT), State Bank of Patiala (SBH) and State Bank of Hyderabad (SBH) were merged into SBI.