The history of State Bank of India is the history of organised banking in India. India’s largest lender by assets describes itself as the ‘banker to every Indian.’ That claim is not too far off the mark — it has the largest number of branches, the most account-holders and reaches every nook and corner of the country, serving everyone from India’s biggest corporates to small farmers and cottage entrepreneurs. The bank’s current Chairman Arundhati Bhattacharya spoke with K Ramkumar on how SBI has been central to banking activity in the country since Independence. Excerpts:

In the past seven decades, what has changed in India’s largest bank?

Banking in India evolved with SBI — not SBI in its current form, but SBI in all its avatars, so to speak. We started in 1806 as the Bank of Calcutta, then became the Presidency banks of Calcutta, Madras and Bombay and then merged together in 1921 to become the Imperial Bank. In 1955, this bank became the State Bank of India.

When the bank was made into the SBI, the idea was very simple: we needed to expand the reach of the bank so as to include the very many segments that were not included. And I think the SBI has done a good job.

We were the first bank to set up a mutual fund, the first to set up an investment banking arm and so on. In computerisation, technology and digital also, SBI has done quite a bit of ground-breaking activity. We continue to lead in digital offerings. I think that across the world there is no other wallet that is offered in so many languages.

We’ve led in setting up other institutions, sometimes on our own, sometimes as one of the original promoters. So, whether it is NSE, CCIL, CIBIL, CRISIL, we had not only a role in the equity, but in many cases our people also went there and worked there in order to set up the corporation.

When the lead bank scheme came in, I am told Mr Talwar (RK Talwar was chairman from 1969-76), said, “Let all other banks chose, whatever is left over we will take.” Wherever there is economic backwardness, we have the responsibility. We have always carried more than our share of the weight where the economy is concerned.

Which of SBI’s best practices have stood the test of time?

HR practices. For instance, our two-year training programme for probationary officers has stood the test of time. Secondly, our ability to ensure that people are challenged enough to learn what needs to be learnt. While creating specialists we also ensure that people get exposure to two or three other streams. Not only that. As they go higher in the hierarchy, they are given chances of going outside — into our subsidiaries, of being more a part of the so-called private sector.

The other thing the bank has done well is to evolve with time. This adaptability is something that has very well stood the test of time.

What sets SBI apart from others?

SBI has always rewarded professionalism and it is more a meritocracy than you can find in many, many places. And doing a good job over here does get rewarded. That is something that is very zealously guarded – that we continue to ensure that people with merit are the ones that rise to the top.

We also believe that the difference between us and others is our ability to expose our people to so many different challenges. It forges our people in steel, so to speak, to be able to meet so many challenges and still come up ahead.

We have the good things of the private sector as well the best things of the public sector.

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