State Bank of India: The Opportunities and Challenges of Being a State-Owned Bank in India

The State Bank of India (SBI), India’s largest and oldest surviving bank, accounts for a fifth of the country’s banking sector by most measures. It has held on to its premier position in the teeth of serious competition from private players after the country opened up its banking sector in the mid-1990s. However, as with other state-owned banks, its public sector status continues to handicap SBI’s competitiveness in important ways, while also bestowing certain advantages, particularly in turbulent times. This chapter attempts to understand how government ownership has hindered — and helped — SBI in an increasingly competitive banking environment in India.