Profile

India’s oldest and biggest bank

The State Bank of India is undergoing a momentous

transformation. The country’s oldest bank, its largest

commercial bank and one of the Top 100 Banks of the world

is today stirring out of its public sector legacy and rapidly

changing lanes to give the private and foreign banks a run

for their money.

The 210-year-old public sector behemoth boasts key entities

in the entire financial spectrum of India, is a financial

conglomerate with over 19 000 branches and 215 000

employees – and is on a global mission to become a truly

international bank, offering a full spectrum of services to all.

A government of India undertaking, with the government

owning 59% of the equity and the balance widely held by

public, the State Bank of India (SBI) is headed by Arundhati

Bhattacharya, the first woman to lead an India-

based  company. The multinational’s vast domestic presence

is complemented by its international network of about 198

offices in 38 countries. Guided by the overarching principle

of supporting global Indian Corporates and Indian Diaspora

worldwide, the bank has expanded its international operations

to also target the local populace and has dedicated a separate

business unit, the International Banking Group, to this

endeavour.

Unlocking South Africa’s banking potential

With SBI’s International Banking Group having identified

South Africa as a priority market, the bank launched its South

African operations with a branch in Johannesburg in 1996,

catering mainly to the needs of corporate clients and the

Indian community. Today, the State Bank of India has seven

offices and branches in the country.

“In view of the steady and encouraging growth in Indo-SA

trade, South Africa’s position as a middle income emerging

market economy, its key economic indicators and the large

presence of Non-Resident Indians and Persons of Indian

Origin population at many centres, the opening of sub-offices

in Chatsworth, Laudium, Pietermaritzburg and Port Elizabeth

was considered primarily to work as marketing arm of

Johannesburg and Durban branches to ease transactions on

various levels”, says Regional Head and CEO of State Bank

of India, South Africa (SBI SA), Y Suresh Bhat.

Boutique banking services

SBI SA is fully equipped as a one-stop shop providing a

bouquet of financial products and services for large, medium

and small customers.

“Our primary focus is corporate customers, and growth

through syndicated and bilateral loans to Indian companies

established or planning to establish their presence in South

Africa or other African countries and other local companies,”

explains Bhat.

SBI SA’s product range for corporate customers include

Business Loans, Project Loans, Loan Syndications, Loans to

Professionals, Export/Import Finance, Trade Finance including

Letters of Credit, Buyer’s/Supplier’s Credit, Guarantees,

Foreign Exchange, Forward Exchange Contracts, and more.

“We offer excellent personalised service to our clients,” says

Bhat proudly. “For retail customers, apart from other regular

services, we offer an Online Remittance facility, which is

extremely reliable, efficient and secure. The Exchange Rate

offered to corporate and retail customers are also highly

competitive and service charges for various forex services

are comparatively low.”

State Bank of India South Africa: Offspring of aBanking Giant By Lucinda Jordaan

1 1India & South Africa - Trade and Investment Partners

Mrs. Arundhati BhattaCharya

Chairman

“SBI SA is fully equipped as a one-

stop shop providing a bouquet of

financial products and services

for large, medium and small

customers.”

1 1India & South Africa - Trade and Investment Partners

Committed to South Africa

While SBI SA’s core focus has been on offering trade and

corporate finance services to companies in the automotive,

infrastructure, mining, power and energy and industrial

markets, amongst others, the bank has extended its client

reach to include all South Africans and has diversified its

books to expand its African footprint, with the aim of

increasing its asset base to R10 billion.

“We have consistently made a profit in South Africa while

complying with all the local regulations. Our balance sheet

has been growing consistently, as has our market share,”

notes Bhat. With such positive results, the bank is dedicated

to contributing to the country’s growth. “We are committed

to become one of the reliable partners to foster sustained

economic growth in South Africa. In all of South Africa’s

endeavours to move further on the path of sustainable

growth, SBI SA is committed to offer its support; our

commitment to South Africa is deep and long-standing.”

Creating jobs and being socially responsible

SBI SA contributes directly and indirectly to creating job

opportunities in the country. The bank not only facilitates

the generation of employment opportunities in South Africa

by granting loans and providing financial services to large

number of corporate customers, but half its staff complement

of about 60 are South Africans.

This multinational is arguably also one of the most socially

responsible brands, with a host of awards to prove it.

“Responsiveness to the needs of the society and responsibility

to meet those needs is ingrained in the ethos of our Bank,”

declares Bhat. “CSR is not an isolated practice or initiative

for the Bank but runs through its entire business paradigm,”

he adds, pointing out that The Bank has a comprehensive

Corporate Social Responsibility (CSR) Policy, approved by

the Executive Committee of the Central Board, and has had

various social, educational, environmental, health and welfare

initiatives and activities embedded in its practice since 1973.

Among its various accolades the State Bank of India has

been awarded include: a Magna Awards 2015 as Socially

Responsible Bank by Business World Magazine; a Golden

Globe Tigers Award by World CSR Day for Excellence &

Leadership in CSR as well as one for Innovations in CSR

Practices; a Golden Peacock Award for CSR by the Institute

of Directors, New Delhi; an Environmental Sustainability

Award 2014 by BFSI Magazine; an Asia Sustainability

Excellence Award 2014 by World CSR Congress and a Best

in Class Corporate Social Responsibility Practices Award

2014 by CMO Asia.

“South Africa has a solid infrastructure … and offers abundant opportunities to any businesses that have

a long term view of investing here, and also acts as launch pad for further growth in other African countries.”

1 1India & South Africa - Trade and Investment Partners

A regional roadmap to Africa

While it is true that the South African economy has slowed

in the last few years, SBI SA has grown at a consistent pace

and is confident of its future in the region. “We are positive

about the country’s resilience and the competency of and

entrepreneurship of its corporates, and our goal is to become

a player to be reckoned amongst our peer group in the local

banking industry,” says Bhat.

“South Africa has a solid infrastructure in terms of good

roads, ports, transportation facilities, well-developed financial

institutions and capital market. The country is well-connected

by road with the neighbouring countries and by way of sea

routes to other East and West African countries sharing

Indian Ocean and Atlantic Ocean waters, and through air

routes with most developing African countries. It offers

abundant opportunities to businesses who have a long term

view of investing here, and also acts as launch pad for further

growth in other African countries,” concludes Bhat.

“The bank not only facilitates

the generation of

employment opportunities in

South Africa by granting

loans and providing financial

services to large number of

corporate customers, but half

its staff complement of about

60 are South Africans.”