State Bank of India: The road ahead

Abstract

In January 2008, SBI became number one bank in India in terms of market capitalization. It became India’s most valuable company when Mr. O P Bhatt, Chairman of SBI received CNN-IBN’s Indian of the year award. State Bank is now the country’s 5 th largest company in terms of market capitalization, from 14th in 2006. Internationally, it has entered the Fortune Global 500. The success story of SBI has been nothing but commendable. Having survived triumphantly for the last 200 years, the State Bank of India legacy continues. Only in early 2000s with a combined effect of entry of numerous private players and change in the rules of the game through liberalization, SBI lost its footing for a while. However, if the recent events are anything to go by, then SBI is close to regaining its lost glory. They have fought back the computerization drive of private players and are now leveraging on it. The product mix offered by SBI is on par with, and in some cases better compared to its private competitors. Customer service is one key area of improvement though they were rated the best bank in India in terms of customer service, brand loyalty and branch strength. Therefore, SBI is on the right path but a lot needs to be done to do justice and capitalize on the opportunities that are being presented today.