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Thursday, June 23, 2005

Inspiring speech by Steve Jobs, CEO Apple and Pixar at Stanford University Graduate Commencement

Dear All,
 
Steve Jobs, CEO of Apple Computers delivered this highly inspiring and touching speech at the Graduate Commencement of Stanford University on June 12 2005.
 
 I am sure you too will feel inspired after reading it.
 
Regards,
R.S. Pai
 
--------------------------------------------------------------------
 
I am honored to be with you today at your commencement from one of the finest universities in the world. I never graduated from college. Truth be told, this is the closest I've ever gotten to a college graduation. Today I want to tell you three stories from my life. That's it. No big deal. Just three stories.
The first story is about connecting the dots.

I dropped out of Reed College after the first 6 months, but then stayed around as a drop-in for another 18 months or so before I really quit. So why did I drop out?

It started before I was born. My biological mother was a young, unwed college graduate student, and she decided to put me up for adoption. She felt very strongly that I should be adopted by college graduates, so everything was all set for me to be adopted at birth by a lawyer and his wife. Except that when I popped out they decided at the last minute that they really wanted a girl. So my parents, who were on a waiting list, got a call in the middle of the night asking: "We have an unexpected baby boy; do you want him?" They said: "Of course." My biological mother later found out that my mother had never graduated from college and that my father had never graduated from high school. She refused to sign the final adoption papers. She only relented a few months later when my parents promised that I would someday go to college.

And 17 years later I did go to college. But I naively chose a college that was almost as expensive as Stanford, and all of my working-class parents' savings were being spent on my college tuition. After six months, I couldn't see the value in it. I had no idea what I wanted to do with my life and no idea how college was going to help me figure it out. And here I was spending all of the money my parents had saved their entire life. So I decided to drop out and trust that it would all work out OK. It was pretty scary at the time, but looking back it was one of the best decisions I ever made. The minute I dropped out I could stop taking the required classes that didn't interest me, and begin dropping in on the ones that looked interesting.

It wasn't all romantic. I didn't have a dorm room, so I slept on the floor in friends' rooms, I returned coke bottles for the 5� deposits to buy food with, and I would walk the 7 miles across town every Sunday night to get one good meal a week at the Hare Krishna temple. I loved it. And much of what I stumbled into by following my curiosity and intuition turned out to be priceless later on. Let me give you one example:

Reed College at that time offered perhaps the best calligraphy instruction in the country. Throughout the campus every poster, every label on every drawer, was beautifully hand calligraphed. Because I had dropped out and didn't have to take the normal classes, I decided to take a calligraphy class to learn how to do this. I learned about serif and san serif typefaces, about varying the amount of space between different letter combinations, about what makes great typography great. It was beautiful, historical, artistically subtle in a way that science can't capture, and I found it fascinating.

None of this had even a hope of any practical application in my life. But ten years later, when we were designing the first Macintosh computer, it all came back to me. And we designed it all into the Mac. It was the first computer with beautiful typography. If I had never dropped in on that single course in college, the Mac would have never had multiple typefaces or proportionally spaced fonts. And since Windows just copied the Mac, its likely that no personal computer would have them. If I had never dropped out, I would have never dropped in on this calligraphy class, and personal computers might not have the wonderful typography that they do. Of course it was impossible to connect the dots looking forward when I was in college. But it was very, very clear looking backwards ten years later.

Again, you can't connect the dots looking forward; you can only connect them looking backwards. So you have to trust that the dots will somehow connect in your future. You have to trust in something - your gut, destiny, life, karma, whatever. This approach has never let me down, and it has made all the difference in my life.

My second story is about love and loss.

I was lucky � I found what I loved to do early in life. Woz and I started Apple in my parents garage when I was 20. We worked hard, and in 10 years Apple had grown from just the two of us in a garage into a $2 billion company with over 4000 employees. We had just released our finest creation - the Macintosh - a year earlier, and I had just turned 30. And then I got fired. How can you get fired from a company you started? Well, as Apple grew we hired someone who I thought was very talented to run the company with me, and for the first year or so things went well. But then our visions of the future began to diverge and eventually we had a falling out. When we did, our Board of Directors sided with him. So at 30 I was out. And very publicly out. What had been the focus of my entire adult life was gone, and it was devastating.

I really didn't know what to do for a few months. I felt that I had let the previous generation of entrepreneurs down - that I had dropped the baton as it was being passed to me. I met with David Packard and Bob Noyce and tried to apologize for screwing up so badly. I was a very public failure, and I even thought about running away from the valley. But something slowly began to dawn on me � I still loved what I did. The turn of events at Apple had not changed that one bit. I had been rejected, but I was still in love. And so I decided to start over.

I didn't see it then, but it turned out that getting fired from Apple was the best thing that could have ever happened to me. The heaviness of being successful was replaced by the lightness of being a beginner again, less sure about everything. It freed me to enter one of the most creative periods of my life.

During the next five years, I started a company named NeXT, another company named Pixar, and fell in love with an amazing woman who would become my wife. Pixar went on to create the worlds first computer animated feature film, Toy Story, and is now the most successful animation studio in the world. In a remarkable turn of events, Apple bought NeXT, I retuned to Apple, and the technology we developed at NeXT is at the heart of Apple's current renaissance. And Laurene and I have a wonderful family together.

I'm pretty sure none of this would have happened if I hadn't been fired from Apple. It was awful tasting medicine, but I guess the patient needed it. Sometimes life hits you in the head with a brick. Don't lose faith. I'm convinced that the only thing that kept me going was that I loved what I did. You've got to find what you love. And that is as true for your work as it is for your lovers. Your work is going to fill a large part of your life, and the only way to be truly satisfied is to do what you believe is great work. And the only way to do great work is to love what you do. If you haven't found it yet, keep looking. Don't settle. As with all matters of the heart, you'll know when you find it. And, like any great relationship, it just gets better and better as the years roll on. So keep looking until you find it. Don't settle.

My third story is about death.

When I was 17, I read a quote that went something like: "If you live each day as if it was your last, someday you'll most certainly be right." It made an impression on me, and since then, for the past 33 years, I have looked in the mirror every morning and asked myself: "If today were the last day of my life, would I want to do what I am about to do today?" And whenever the answer has been "No" for too many days in a row, I know I need to change something.

Remembering that I'll be dead soon is the most important tool I've ever encountered to help me make the big choices in life. Because almost everything � all external expectations, all pride, all fear of embarrassment or failure - these things just fall away in the face of death, leaving only what is truly important. Remembering that you are going to die is the best way I know to avoid the trap of thinking you have something to lose. You are already naked. There is no reason not to follow your heart.

About a year ago I was diagnosed with cancer. I had a scan at 7:30 in the morning, and it clearly showed a tumor on my pancreas. I didn't even know what a pancreas was. The doctors told me this was almost certainly a type of cancer that is incurable, and that I should expect to live no longer than three to six months. My doctor advised me to go home and get my affairs in order, which is doctor's code for prepare to die. It means to try to tell your kids everything you thought you'd have the next 10 years to tell them in just a few months. It means to make sure everything is buttoned up so that it will be as easy as possible for your family. It means to say your goodbyes.

I lived with that diagnosis all day. Later that evening I had a biopsy, where they stuck an endoscope down my throat, through my stomach and into my intestines, put a needle into my pancreas and got a few cells from the tumor. I was sedated, but my wife, who was there, told me that when they viewed the cells under a microscope the doctors started crying because it turned out to be a very rare form of pancreatic cancer that is curable with surgery. I had the surgery and I'm fine now.

This was the closest I've been to facing death, and I hope its the closest I get for a few more decades. Having lived through it, I can now say this to you with a bit more certainty than when death was a useful but purely intellectual concept:

No one wants to die. Even people who want to go to heaven don't want to die to get there. And yet death is the destination we all share. No one has ever escaped it. And that is as it should be, because Death is very likely the single best invention of Life. It is Life's change agent. It clears out the old to make way for the new. Right now the new is you, but someday not too long from now, you will gradually become the old and be cleared away. Sorry to be so dramatic, but it is quite true.

Your time is limited, so don't waste it living someone else's life. Don't be trapped by dogma - which is living with the results of other people's thinking. Don't let the noise of other's opinions drown out your own inner voice. And most important, have the courage to follow your heart and intuition. They somehow already know what you truly want to become. Everything else is secondary.

When I was young, there was an amazing publication called The Whole Earth Catalog, which was one of the bibles of my generation. It was created by a fellow named Stewart Brand not far from here in Menlo Park, and he brought it to life with his poetic touch. This was in the late 1960's, before personal computers and desktop publishing, so it was all made with typewriters, scissors, and polaroid cameras. It was sort of like Google in paperback form, 35 years before Google came along: it was idealistic, and overflowing with neat tools and great notions.

Stewart and his team put out several issues of The Whole Earth Catalog, and then when it had run its course, they put out a final issue. It was the mid-1970s, and I was your age. On the back cover of their final issue was a photograph of an early morning country road, the kind you might find yourself hitchhiking on if you were so adventurous. Beneath it were the words: "Stay Hungry. Stay Foolish." It was their farewell message as they signed off. Stay Hungry. Stay Foolish. And I have always wished that for myself. And now, as you graduate to begin anew, I wish that for you.

Stay Hungry. Stay Foolish.

Thank you all very much.



Thursday, June 16, 2005

Details of SBI Award staff agreement dt 16-06-2005

Dear All,   Please visit   http://www.sbimspatel.com/pg1.htm  for
complete details of the agreement with Award Staff signed on
16-June-2005 Regards,

Monday, June 13, 2005

Tech initiative award bestowed on SBI (Business Line)

Tech initiative award bestowed on SBI  (Business Line)   MUMBAI: The
Banker, a magazine published by Financial Times Business Ltd, has
conferred two technology initiative awards on the State Bank of India
group for bringing its 14,000 plus inland and 52 plus foreign branches
on two separate core banking platfo rms and for its electronic
communication networking project. The awards have been won under the
categories of the "most outstanding core banking solutions of the year"
and "most outstanding outsourcing project of the year," the bank said in
a release here today (Friday). The SBI group has managed to bring
its 14,000 plus inland and 52 plus foreign branches on two separate core
banking platforms namely 'Bancs@24' of FNS being implemented by TCS Ltd,
and Finacle core banking solutions of Infosys. The group is also
running an electronic communication-networking project called SBI
Connect, which is being implemented by Datacraft India. SBI Connect,
which is a wholly owned private communication network of the group helps
the banks central data centre to communicate seamlessly with its
branches using data, voice and video. - PTI

Sunday, June 05, 2005

200 and still ticking: SBI celebrates its history (Economic Times)

200 and still ticking: SBI celebrates its history (Economic Times)
TIMES NEWS NETWORK[ SATURDAY, JUNE 04, 2005 12:26:25 AM]

MUMBAI: Big Daddy as it is called in the money markets turns 200 this week. The bicentennial celebrations of State Bank of India will be flagged off on Saturday at a function to be attended by Prime Minister Manmohan Singh and finance minister P Chidambaram.

From its inception in 1806, the bank has been a fund raiser for the various powers that ruled the country. As the Bank of Bengal in the early 19th century, it helped the East India Company stabilise interest rates and mobilise funds to expand the Company�s operations in India.

A 100 years later, under the British crown as the Imperial Bank of India, it acted as a quasi-central bank and gave effect to the government�s monetary policy. Post-independence, as SBI, the bank repeatedly rose to assist the government in times of foreign currency crises.

During the foreign currency crisis of the 1990s, the bank raised billions in dollars to pay for oil. When the Pokhran tests put off foreign investors in 1998, it raised $4.2bn. Once again in �00 the bank mobilised over $5bn to raise funds for growth.

Because of its size the bank is treated as a proxy for the Indian economy by foreign investors. With foreign financial markets opening up to Indian corporates, SBI is once again at an inflection point where it is reinventing itself as a retail lender.
 
 The bank�s first makeover happened in 1995 following McKinsey & Co�s recommendation of a flatter organisation with the creation of corporate offices for lending to large companies. The offices had huge lending limits and would report directly to the head office. Now, once again the bank is in the midst of a transformation to emerge as a technology-driven retail giant.

Says VN Nadkarni, who retired as chairman of the bank over two decades ago, �The strength of the bank was that systems were decentralised and there was great delegation of power.� According to Mr Nadkarni the biggest challenge in those days was to convince people to borrow as there was a stigma attached to borrowing. �

At that time, a borrower would commit suicide rather than default. But now it is the banker who has to commit suicide.�

DN Ghosh, chairman, who retired in 1989 and who marked SBI entry�s into investment banking with the launch of SBI Capital Markets and SBI Mutual Fund says that the main strength of SBI is its highly competent workforce. �During nationalisation of banks in India, most senior SBI officials were posted as chairmen to other banks� he says.

There were instances when politicians tried to use the bank for favours. Ex-chairman PG Kakodkar, during whose tenure the bank launched its Global Depository Receipts offering, had a unique way of dealing with such requests.

�I would ask them to fax me the request on the pretext that the phone line was not clear. After that, I would never receive any fax.� Mr Kakodkar also relates instances when the bank had to work around issues because of problems with unions.

�Computerisation had started in 1991, with the Backbay Reclamation branch being the first to be computerised. But due to opposition from unions the project had to be renamed Commercial & Institution Banking project.� Even transferring the forex department from Kolkata to Mumbai, where the markets were, took the bank 10 years. �

It was done in a subtle way with a namesake forex department being retained in Kolkata, which undertook only reconciliation work, while most of the forex business was shifted to Mumbai,� says Mr Kakodar.

MS Verma, who headed the bank during the Asian currency crisis and the panic selling which followed the Pokhran II tests in 1998 says that at that time, when there was a threat to isolate India, it was important to demonstrate that India could manage its own economy.

�SBI was the only bank which could raise this kind of money and deploy it in a manner that could cover its cost,� says Mr Verma. The bank ended up raising $4.3bn. According to Mr Verma the only handicap the bank has is the high average age of the organisation which means that training requirements would be different than those required for private banks.

The pressure of foreign exchange did not end when GG Vaidya took charge when the rupee was still under pressure and foreign investors were still wary. Yet the bank managed to raise $5bn in a span of two weeks. �The bank has the capacity to single-handedly deal with any transaction of any volume,� says Mr Vaidya.

According to him, there is an intertia in the bank when it comes to getting moving on new projects; This can be witnessed in the time taken to complete networking of branches. It was during Mr Vaidya�s tenure that a major attempt was made to resolve the issue of SBI�s seven associate banks.

Prior to independence, these were the apex banks at each of the independent princely states. Mr Vaidya had pushed for a merger of SBI with its associates and brought the bank to the brink of consolidation. However, his term came to an end before he could initiate merger proceedings.



SBI gets a birthday gift (Economic Times)

SBI gets a birthday gift (Economic Times)  TIMES NEWS NETWORK[ SUNDAY,
JUNE 05, 2005 12:30:38 AM] MUMBAI: As a gift on State Bank of
India�s 200th birthday, the government will review the �restrictions�
that hold back the country�s largest bank from raising money in the
capital market. Given the scale of capital required by SBI, the
government appears to be set to clear higher foreign shareholding in the
bank. Speaking at a function to mark the beginning of the bank�s
bicentennial celebrations finance minister P Chidambaram said that SBI
must expand globally to take India to the rest of the world. �I look
forward to seeing the SBI logo in every capital of every country,� said
Chidambaram At present, the Reserve Bank of India holds 59.73% in
SBI. The bank has headroom to issue further equity only until RBI�s
holding is down to 55%, which is the minimum prescribed under law.
Besides, the bank cannot raise capital overseas because it has a
foreign shareholding limit of 20% which has already been reached with
GDR holders accounting for 7.88% stake and foreign institutional
investors accounting for 11.9% stakes. However, if the government
raises the 20% limit for SBI in the next few months, there is a distinct
possibility that the foreign holding cap for nationalised banks, also at
20% will be reviewed. It is not clear at this stage whether the
government will also make it easier for the seven associate banks of SBI
to raise equity. At present the face value of shares of the associate
banks is Rs 100, and there is a restriction that no investor can hold
more 200 shares. Chances are that these restrictions would also be
re-examined. The finance minister said that SBI�s presence abroad
was also required to finance global trade, which was the engine of
growth and the opportunity for Indian companies to turn into
multinationals. �The initiative to expand into rural India and into
the world will require capital,� he said, adding that the government
will �re-examine all the current policies and restrictions� that come in
the way of SBI�s raising capital. Earlier speaking about the banking
sector, P Chidambaram said that banks would require capital to meet with
new capital adequacy requirement and provide credit required to fuel an
8% growth rate. The finance minister said that banks must also begin
to re-look at their concept as banks. �Banks cannot only sell banking
products. They have to start selling other products such as insurance,�
he said. Speaking at the function, Chidambaram set out an 8%
targeted growth rate for the economy. �The Indian economy can grow at
the rate of 5% even if there is no government. It can grow at 6% if
there are good monsoons and at 7% if there is a reasonable government
that does not interfere. It can grow at 8% if there is a proactive
government. That is the kind of government we want to offer,� said
Chidambaram. He added that an 8% rate of growth would require a huge
expansion in credit for which the banking sector will have to raise
capital.

200 years later, SBI looks overseas to fuel growth (Indian Express)

200 years later, SBI looks overseas to fuel growth (Indian Express) 
DEV CHATTERJEE         
 Posted online: Sunday, June 05, 2005 at 0029 hours IST
 
MUMBAI, JUNE 4: If you walk into the exhibition set up by State Bank of India at the National Centre of Performing Arts (NCPA) in Mumbai to celebrate its 200th birthday, don�t miss a typewritten yellow-coloured letter written by Tata Sons Chairman J.R.D. Tata in 1943 protesting 50 per cent reservation of jobs for Europeans.

��As an Indian I am completely against this reservation,�� said Tata � who was a member of the then Imperial Bank � as he sought equal opportunities for Indians.
 
As State Bank of India, which was constituted by an Act of Parliament in 1955 as the successor to the Imperial Bank of India, flags off its seeped-in-history bicentennial celebrations here today, JRD Tata would have been proud of what Indians managers have achieved over the last 58 years.

State Bank is today India�s largest bank with profits of over $1.13 billion (around Rs 5,000 crore) and a balance sheet footage of over $113 billion (Rs 5,00,000 crore).

It has been a long journey for the bank, which opened for business as Bank of Calcutta on June 2, 1806, as interest rates shot up and East India Company�s government wanted public credit.

Over the years, SBI has turned itself into a financial powerhouse and now looks beyond India to grow. ��I want the SBI not only to go deeper into rural areas but would like to see a State Bank of India logo in every capital of the world,�� Finance Minister P. Chidambaram set out the bank�s future agenda here today.

��The challenge of the future is daunting... �� warned Prime Minister, Manmohan Singh. ��Size does benefit but size alone does not guarantee success,�� the PM said.

No doubt the road ahead for SBI is getting more challenging. Take for example, SBI with its $1 billion profit is far lower than Citigroup�s profit of $17 billion and Bank of America�s $14 billion in December �04. The same year, HSBC reported a net profit of $11.8 billion.

Former chairman Dipankar Basu says the bank must adapt to change in order to survive. ��The challenges ahead are to attract and retain younger talent who can compete with foreign and private banks,�� says Basu. ��We have to look abroad for opportunities.��

SBI is planning a �Project Vijay� that will put it on the global banking map, as envisaged by the finance minister. �By 2008, SBI plans to rank itself among the top 50 global banks and among the top five in Asia,�� said SBI Chairman A.K. Purwar.



Thursday, June 02, 2005

A birthday wish for SBI (Business Line)

A birthday wish for SBI

(Business Line)

P. Devarajan

IN the banking industry an SBI official commands a premium, being a stride ahead of the crowd. Despite ICICI Bank, SBI and its seven associates continue to be a lap ahead of the pack, having been vetted in the virtues and vices of over 200 years of existence in banking.

SBI, LIC and the Indian Railways are the three familiar corporate logos enjoying prime place in every district of India and every family album. Going by its birth certificate, SBI's British origins can be put down to June 2, 1806 and on June 4, 2005 the Prime Minister, Dr Manmohan Singh, will be the guest of honour at the birthday bash in Mumbai.

For the Prime Minister, SBI should be familiar, having presided over it as the RBI Governor and its majority owner and as the Finance Minister.

SBI is also the banking face of the country abroad, having raised a few billion dollars in tough times from international markets. One is not sure whether on June 4 the speakers will remember Raj Kumar Talwar, who started as a probationary officer in SBI in late 1943 at Lahore to become SBI Chairman at 47; he was sacked in 1976 at 54.

If SBI is what it is today, the kudos goes to Talwar, according to bankers including those inside SBI. Most new private banks started with an SBI official as Chairman.

Talwar put in place systems which still work and that without the services of any foreign consultant. SBI dropped the habit sometime ago when it picked up a foreign consultant to write its fate. Foreign consultants know little about Indian banking practices and recycle banking jargon picked up from bankers.

But Raj Kumar Talwar was different, leading from the front and not from air-conditioned offices. When M.J. Pherwani took over as Chairman of UTI, Talwar sent a hand-written note to him that said, "Manohar, in all your career, please cling to the truth, no matter what happens to you."

In the book, R.K. Talwar, Tributes, edited by S.A. Dave and N. Vaghul , Vaghul writes: "Not many before, nor any after him, were capable of showing such immense moral courage."

From Talwar's days to June 4, 2005, SBI has grown measured by the number norms of accountants. But do the numbers carry quality? That's debatable. Over the last 15 years, SBI has not had a Chairman with a five-year term to locally and globally position the bank.

Over the years, Deputy Managing Directors and Managing Directors have come and gone, faster than tigers at Sarsika . Mostly it is not ability but boring seniority that pitchforks officials to the top, with the board having little say.

"In that respect it is a bit like the RBI," says a banker, though the RBI will dislike the comparison. SBI, like others, does not believe in building expertise. Transfers are mandatory; an official in the treasury gets transferred to the loan section or some other after a five-year stint, learning little.

In the last couple of years, SBI has forayed into retail loans and treasury profits, like every other player in the industry. But it has not used its financial strengths to grab the lead in farm or SSI lending.

It does abide by priority sector norms but that's not the same as making the critical difference in the lives of the poor and landless farmers. With its reach, SBI could have by now touched the lives of the farming community. The passion has been missing. The bank cannot say that farm lending is unviable, as every working group has said the opposite.

The SSI sector has not been a favoured client as the books turn NPAs, but is that worse than funding Dabhol (was it mandated?) and then providing for the losses from profits?

In fact, the players in the banking industry have been battling each other for 5-star clients alone and SBI has just been an important player. With technology any loan application should not take more than a week, but is that the case with SBI with its massive database? If farm lending continues to be a no-no for banks, India will not grow at seven per cent or eight per cent. That's for sure.

For SBI to be an effective intermediary, the RBI has to shed at least 24 per cent of its 56 per cent equity stake in favour of the public. SBI has mostly been used by New Delhi and the RBI to underwrite their ideas. SBI is not an independent entity and there is little chance of it being so when the birthday party starts on June 4.



Details of Award and Supervising staff wage revision

Please visit the link: http://www.sbimspatel.com/bank.htm to get full
details of the VIII Bipartite settlement. Regards, Moderator

Salary Revision Circular issued by AISBOF

(Can be downloaded from www.aisbof.com)

 CIRCULAR NO. 67 TO ALL AFFILIATES/MEMBERS:                   2nd  June, 2005

SALARY REVISION

We furnish below the text of AIBOC Circular No. 33 of date for the information of our affiliates/members.

with greetings,
Sd/-
(SHANTHA RAJU)
GENERAL SECRETARY

CIRCULAR NO. 33
TO ALL AFFILIATES/MEMBERS:                    2nd  June, 2005

HISTORIC SETTLEMENT REACHED: CONGRATULATIONS TO ALL COMRADES AIBOC CREATES SEVERAL MILE STONES

The signing of the agreement on 02-06-2005 by the representatives of the Confederation and Indian Banks� association has drawn the curtain to the long awaited salary revision exercise for the Bank Officers. The agreement is a historic one. The long waiting, patience, perseverance and commitment of the rank and file has ensured one of the best settlements we have reached so far at the industry level. The success is that of the rank and file. We congratulate them and applaud them for the tremendous maturity and patience shown by them in reaching the final settlement. The agreement is historic and significant on several counts. The major ones are:-

(1) The percentage increase at 13.25% is the highest so far;
(2) The Officers in the Banking Industry could not get the same date of effect as that of the workmen
in the last revisions. This is the first time the date of effect is from  the date of expiry of the earlier agreement, i..e. 01-11-2002;
(3) The removal of anomaly in the matter of Dearness Allowance and neutralization of 100% of D.A.   for Officers and Employees;
(4) The correction of Pension aberration and achievement of 50% of last drawn pay as pension
 payable to employees retired w.e.f. 1-4-1998 and future retirees;
(5) Introduction of encashment of LFC facility;
(6) Revision of all allowances and their improvement including the issue of Halting Allowance, etc.;
(7) Assurance from IBA for continuation of bipartite negotiations on extension of pension to PF   optees;
(8) Improvement in Hospitalisation charges which remained unchanged during the last settlement.

There are several other areas which have ensured a fair deal to the Officers� Community.

2. Comrades, the Confederation has  once again emerged as a clear winner in the race. It has ensured that the officers who were deprived of certain benefits,  particularly D.A. neutralization as also the date of effect have been taken  care of fully. The Confederation has also succeeded in ensuring higher merger of  Index and the revision of all allowances.

3.  We enclose the details of the settlement for the information of  all our comrades.

4. Comrades, let us rededicate ourselves on this historic occasion to the cause of the Officers� Movement, to protect and strengthen it through our constructive participation in all the activities of the Confederation to defend the interests of the working class of our country. On the eve of our completion of 2 decades of service, we look forward to the whole-hearted  support of all our officers and comrades in all our future struggles.

With greetings, 
Sd/-
( SHANTHA RAJU )
GENERAL SECRETARY

ENCL:

SALIENT FEATURES OF
SALARY REVISION FOR OFFICERS

(1)  Scales of Pay (W.e.f.: 01/11/2002)

 Scale -I  = 10000-470/6-12820-500/3-14320-560/7-18240
 Scale -II  = 13820-500/1-14320-560/10-19920
 Scale -III  = 18240-560/5-21040-620/2-22280
 Scale -IV  = 20480-560/1-21040-620/5-24140
 Scale -V  = 24140-620/4-26620
 Scale -VI  = 26620-680/4-29340
 Scale -VII  = 29340-680/2-30700-900/1-31600-1000/1-32600

Fitment:
Fitment shall be stage-to-stage, i.e., on corresponding stages from 1st stage onwards and the increments shall fall on the anniversary date as usual.

2)  Dearness Allowance:

(a) For the period from 01-11-2002 to 31-1-2005: 

For every rise or fall of 4 points over 2288 points in the quarterly average of the All India Average Working Class Consumer Price Index(General) Base 1960=100 at the following rates:-

 (i)     0.18% of �pay� upto Rs.9,650/- plus
 (ii)    0.15% of �pay� above Rs.9,650/- and upto Rs.15,350/- plus
 (iii)    0.09% of �pay� above Rs.15,350/- and upto Rs.16,350/-plus
 (iv)    0.04% of �pay� above Rs.16,350/-
 
(b) On and from 1st February, 2005 :

Dearness Allowance shall be payable for every rise or fall of 4 points over 2288 points in the quarterly average of the All India Average Working Class Consumer Price Index (General) Base 1960=100: at 0.18% of pay.

3)  House Rent Allowance: (w.e.f. 01/11/2002)
����������������������������������
                                                                I                            II
����������������������������������
(i)  Major �A� Class Cities and Project  Area Centres in Group �A�            8.5% of Pay 
(ii)  Other places in Area I and Project  Area Centres in Group �B�            7.5% of Pay
(iii)  Other places                                                                                          6.5% of Pay
����������������������������������
Provided that if an officer produces a rent receipt, the House Rent Allowance payable to him/her shall be the actual rent paid by him/her for the residential accommodation in excess over 1.75% of pay in the first stage of the Scale of Pay in which he/she is placed with a maximum of 150% of the House Rent Allowance payable as per aforesaid rates mentioned in Column-II above.

 Note:

The claims of officer employees for House Rent Allowance linked to the cost of their ownership accommodation shall also be restricted to 150% of House Rent Allowance as hitherto.

4)  City Compensatory Allowance: (W.e.f 01-11-2002)
����������������������������������
 Area                                                  Rate        Maximum Amount
����������������������������������
i)  Places in Area 1 and                       4% of            Rs.540/-
 In the State of  Goa                          Basic Pay

ii)  Places with population  of                3% of              Rs.375/-
 5 lakhs and over and State                Basic Pay
 Capitals and Chandigarh,
 Pondicherry and Port Blair
����������������������������������
5)  Provident Fund (W.e.f 01-11-2002)

 10% of Pay

6)  Pension (other than State Bank of India)

In respect of an officer, other than the officer in SBI, who is a member of the Pension Fund, who retires or dies while in service or other wise ceases to be in employment on or after the 1st of May 2005, �Pay� for the purpose of pension shall be the pay last drawn by the  officer employee prior to his retirement/death. Pending necessary amendment to be made to the relevant provisions of the bank (employees) Pension Regulations, 1995 officers retiring or dying while in service on or after 1st May� 2005 shall be granted provisional pension having regard to the above provisions.

 Note
(1) The Bank (employees) Pension Regulations, 1995 does not apply to the officers of SBI.

(2) �Pay� for the purpose of Provident Fund/Pension shall mean Basic Pay including Stagnation
Increment, Professional Qualification pay, Increment component of Fixed Personal  pay and Officiating Allowance.

7)  Medical Aid:
 On and from 1st February, 2004, reimbursement of medical expenses shall be as under:
 (a)  Officers in JMG & MMG Scales   -  Rs.3,750/-p.a
  (b)  Officers in SMG & TEG Scales   -  Rs.5,000/- p.a.
  
 Note:
For the year 2004, the reimbursement of medical expenses under the medical aid  scheme shall be enhanced proportionately for 11 months, i.e., February, 2004  to December,2004.

8)  Hospitalisation Expenses:
On and from 1st May, 2005, reimbursement of hospitalisation expenses under Regulation 24(1)(b)(i) of Officers� Service Regulations, 1979/1982, shall be in terms of the Hospitalisation Scheme laid down under Bipartite Settlement dated 2.6.2005 for workmen employees, subject to following limits:
����������������������������������
  Scale of Officer                                                 Limits
����������������������������������
(a)  Junior Management Grade Scale-I                  i.  Bed charges
 and Middle Management Grade                        Self - Rs.600/- per day
     Scales II & III                                             Family - Rs.450/- per day
                                                                        ii.  Other charges

At the scale 125% of  limitslaid  down 

under the Hospitalisation Scheme
        applicable to workmen employees


(b)  Senior Management Grade Scales                    i.  Bed Charges
     IV & V and Top Executive Grade                     Self - Rs.800/- per day.
     Scales VI & VII.                                           Family - Rs.600/- per day 

                                                                        ii.  Other charges

                                                                   At the scale of 150% of the    limits laid  down  under the Hospitalisation

Scheme  applicable to workmen Employees.

����������������������������������
9.  Recovery of House/Furniture Rent: (w.e.f: 1-11-2002)
i.  House rent recovery shall be @ 1.75% of the first stage of the scale of pay in which the officer   is placed or the standard rent for the accommodation, whichever is less.

ii.  Furniture rent recovery shall be @ 0.40% of the first stage of the scale of pay in which the officer   is placed.
 
10.  Fixed Personal Pay:
On and from 1st November, 2004.  Fixed Personal Pay together with House Rent Allowance shall be at the following rates and shall remain frozen for the entire period of service.
����������������������������������
Increment Component          DA as on 01-11-2002          Total FPP payable where 

                  bank�s accommodation is provided
����������������������������������

      (A)                                    (B)                             (C)
        Rs.                                  Rs.                            Rs.
����������������������������������
          560                                23                              583
����������������������������������
          620                                 25                             645
����������������������������������
          680                                28                                708
����������������������������������
          1000                               41                             1041
����������������������������������
 Note:
(i)  FPP as indicated in �C� above shall be payable to those officer employees who are provided  with bank�s accommodation.

(ii)  FPp for officers eligible for House Rent Allowance shall be �A� + �B� plus House Rent Allowance drawn by the officer employees concerned when the last increment of the relevant scale of pay as specified in sub-regulation (ii) of Regulation 4 is earned.

(iii)  The increment component of F.P.P. shall rank for superannuation benefits.

11.  Professional Qualification Pay: (W.e.f. 01/11/2002)
 Officers shall be eligible for professional qualification pay as under:

i)  Those who have passed CAIIB - Part-I/JAIIB : Rs.300/- p.m. after one year on reaching top of the scale.

ii)  Those who have passed both parts of CAIIB-
 a)  Rs.300/- p.m. one year after reaching top of the scale.
 b)  Rs.750/- p.m. two years after reaching top of the scale.

 An officer employee aquiring JAIIB/CAIIB (either or both the parts) qualifications after reaching the maximum scale of pay, shall be granted from the date of acquiring such qualification the first instalment of PQP & the release of subsequent instalments of PQP shall be with reference to the date of release of first instlment of PQP.

Provided further that in a case where an officer as on the date of this Joint Note, has already acquired any of the above said qualifications and has not earned any increment or PQP  on account of aquiring such qualifications, he may be, w.e.f. 1st Nov 2002 or the date of acquiring such qualification/s, whichever is later, released PQP  as provided hereinabove.

12.  Other Allowances:

i)  Deputation Allowance. (W.e.f. 1.6.2005)

 Deputation Allowance shall be at the following rates:

a)  An officer deputed to serve outside the bank - 7.75% of pay with maximum of Rs. 1,500/- p.m.

b)  An officer deputed to an organisation at the same place or to the training establishment of the   bank - 4% of Pay with a maximum of Rs.750/-p.m.
ii)  Hill and Fuel Allowance:   (W.e.f. 01/11/2002)
���������������������������������
                     Place                                           Rate
����������������������������������
a)  Places with an altitude of 1000 Metres and above                 2% of Pay subject to a  
 but less than 1500 metres and Mercara Town.                       maximum of Rs. 400/- p.m.

b)  Places with an altitude of 1500 metres                                2.5% of Pay subject to a
 and above but less than 3000 metres.                                maximum of Rs. 500/- p.m.

c)  Places with an altitude of 3000 metrres and above.               5% of Pay subject to a
                                                                                                    maximum of Rs. 1150/- p.m. 
�������-------------�����--------------------------------------------- 

iii)  Halting Allowance:  (W.e.f. 01/6/2005)
����������������������������������
Grade/Scales of Officers               Major �A� class cities    Area-I       Other places
   
Officers in Scale IV and above  Rs. 600/-*        Rs. 550/-     Rs.500/-

Officers in Scale I/II/III              Rs.550/-         Rs.500/-       Rs.400/-
����������������������������������
Provided that in case of officers in Scale IV and above, Halting Allowance payable per diem while on outstation work at  the 4 Metros viz Delhi, Kolkata,Chennai & Mumbai : Rs. 700

iv)  Special Area Allowance:  (W.e.f. 01/11/2002)

At places where special area allowance is payable in terms of regulation 23(ii) of Officers� Service Regulations, 1979/1982, the said allowance shall be payable at rates as in Annexure-IV.

v)  Compensation on transfer:  (W.e.f. 01/5/2005)

An officer on transfer will be eligible to draw a lump sum amount, as indicated below, for expenses connected with packaging, local transportation, insuring the baggage etc.
����������������������������������
 Grade/Scales of Officers                          Rate
����������������������������������
 Officers in Scale IV & above                      Rs.8,750/-

 Officers in Scale-I/II/III                              Rs.7,000/-
����������������������������������
vi)  Mode of Travel and Expenses on Travel

Effective from the date of this joint Note, the following provisions shall apply wherever an officer is required to travel on duty:

(i) An officer in Junior Management Grade is entitled to travel by 1st Class or AC II  Tier Sleeper by train. He may, however, travel by air (economy class) if so permitted by the Competent authority, having regard to the exigencies of business or public interest;

(ii) An officer in Middle Management Grade is entitled to travel by 1st Class or AC II  Tier Sleeper by train. He may, however, travel by air (economy class) if the distance to be travelled is more than 1000 kms. He may, however, travel by air (economy class) even for a shorter distance if so permitted by the Competent Authority having regard to the exigencies of business or public interest;

(iv) An officer in Senior Management or Top Executive Grade may travel by car between places not connected by air or rail provided that the distance does not exceed 500 kms. However, when a major part of the distance between the two places can be covered by air or rail, only the rest of the distance should normally be covered by car;

(v) Any other officer may be authorised by the Competent Authority having regard to the exigencies of business, to travel by his own vehicle or by taxi or by the Bank�s vehicle.

The remaining provisions as in Sub-regulation 2 & 3 of Regulation 41 of Officers� Service Regulations shall remain unchanged.

vii)  Leave Travel Concession:

1.  During each block of 4 years, an officer shall be eligible for leave travel concession for travel to his place of domicile once in each block of two years. Alternatively, he may travel in one block of two years to his place of domicile and in another block of two years to any place in India by the  shortest route.

2. Alternatively, an Officer, exercising the option anytime during a 4 year block or two year block as the case may be, surrender and encash his LTC (other than travel to place of domicile) upon which he shall be entitled to receive an amount equivalent to 75% of the eligible fare for the class of travel by train to which he is entitled upto a  distance of 4500 kms (one way) for officers in JMG Scale-I and MMG  Scale II & III and 5500 kms (one way) for officers in SMG scale-IV and above. An officer opting to encash his LTC shall prefer the claim for himself/herself and his/her family members only once during the block/term in which such encashment is availed of. The facility of encashment of Privilege leave, while awailing of Leave Fare Concession is also available while encashing the facility of LTC.

3. The mode and class by which an officer may avail of Leave Travel Concession shall be the same as the officer is normally entitled to travel on transfer and other terms and conditions subject to which the Leave Travel Concession may be availed of by an officer, shall be as decided by the Board from time to time.

viii)  Definition of family:

i) For the purpose of  Leave Travel Concession and for reimbursement of Hospitalisation Expenses, �Family� of an officer shall mean an officer�s spouse wholly dependent, unmarried children (including dependent step children and legally adopted children) and wholly dependent parents ordinarily residing with and wholly dependent on the officer.

ii) The term wholly dependent child/parent shall mean such member of the family having a monthlyincome not exceeding Rs.2,550/- p.m.

If the income of one of the parents exceeds Rs.2,550/- p.m. or the aggregate income of both the parents exceeds Rs.2,550/- p.m. both the parents shall not be considered as wholly dependent on the employee.

13.  Project Area Allowance:

On and from 1st November 2002, Project Area Compensatory Allowance shall be payable at the following rates:

 Project Areas falling in Group A-Rs. 210/- p.m.
 Project Areas falling in Group B-Rs. 185/- p.m. 
14. Mid-academic year transfer Allowance:

 On and from 1st January 2004, mid-academic year transfer allowance shall be payable   at Rs. 500/- p.m. subject to other conditions.

15. Split Duty Allowance:

 On and from 1st November 2002, Split Duty Allowance shall be payable at Rs. 125/- p.m.

16.  General Provisions:

Officers manning hubs/switch centres, disaster recovery centres or similar sensitive installations requiring round-the-clock maintenance/surveillance and security officers required to provide round the clock maintenance/surveillance shall not participate in any work stoppage/strike action.

17.  Date of Effect:

For payment of arrears, the benefits under various provisions as above, shall be from the date of signing the Joint Note unless otherwise specified against the relevant provisions as detailed below: 

����������������������������������
           W.E.F.
����������������������������������-
1. Basic Pay
2. Dearness Allowance
3. House Rent Allowance
4. City Compensatory Allowance
5. Professional Qualification Pay                              1.11.2002
6. Hill and Fuel Allowance
7. Special Area Allowance
8. Project Area Allowance
9. Split Duty Allowance
����������������������������������
10.  Mid Academic Year  Transfer Allowance                     1.1.2004
����������������������������������-
11.  Dearness Allowance 100% Neutralisation                   1.2.2005
����������������������������������
12.           Medical Aid           1.2.2004
����������������������������������
13.          Fixed Personal Pay        1.11.2004
����������������������������������
14.          Deputation  Allowance                     1.6.2005
����������������������������������
15.          Compensation on Transfer          1.5.2005
����������������������������������



Wednesday, June 01, 2005

Archives of googlegroup's sbinews

Dear All,   The archives (earlier messages) of googlgroup sbinews are
available at: http://groups-beta.google.com/group/sbinews Regards,
Moderator

PM to flag SBI's 200-year celebrations(webindia123.com website)

PM to flag SBI's 200-year celebrations (webindia123.com website) 
New Delhi | June 02, 2005 9:40:05 AM IST
 
New Delhi, June 2 : Prime Minister Manmohan Singh travels to Mumbai Saturday to kick off year-long celebrations to mark 200 years of the country's largest commercial bank, the State Bank of India (SBI).

The prime minister will also inaugurate an exhibition tracing the history of the bank that goes back to the first decade of the 19th century with the setting up of the Bank of Calcutta on June 2, 1806, in Kolkata.

Finance Minister P. Chidambaram - who leaves for Mumbai a day earlier to meet with chief executives of state-run commercial banks - is also taking part in the celebrations, SBI officials said.

The Mumbai-headquartered bank - that has a presence in 31 countries through 52 offices - is now focussing on becoming one of Asia's top five banks by 2008 with major overseas expansion by way of acquisitions.

"We are looking at small or medium-sized banks, covering areas where we have no or low presence," SBI chairman A.K. Purwar said.

The bank - which is 59 percent owned by the Reserve Bank of India and has in its group seven associate banks - wants to take its presence to 36 countries with 70 offices.

In its original form, the Bank of Calcutta was the first joint stock banking firm set up by the British and sponsored by the then Government of Bengal. Three years later, it was renamed the Bank of Bengal on Jan 2, 1809.

Together with the Bank of Bombay and the Bank of Madras - set up respectively on April 15, 1840, and July 1, 1843 - the Bank of Bengal was at the forefront of banking operations in India till their amalgamation as the Imperial Bank of India on Jan 27, 1921.

During its three-and-a-half decades of existence, the Imperial Bank recorded an impressive growth in terms of branches, reserves, deposits, investments and advances - the increases in some cases amounting to more than six-fold.

When India attained freedom in 1947, the Imperial Bank had a capital base of Rs.118.5 million, advances of Rs.2.75 billion, a network of 172 branches and over 200 sub-offices spread across the country.

On July 1, 1955, an act of parliament created the State Bank of India and more than a quarter of the resources of the Indian banking system, including those of the Imperial Bank, were passed on under its direct control.

Further legislation five years later enabled the State Bank of India to take over eight former state-associated banks as its subsidiaries.

Currently, the State Bank group, with seven associates, commands about a fourth of the market in India and operates more than 13,000 branches in the country. The bank's profits alone amounted to around $1 billion in 2004-05.

The SBI recently rewarded shareholders to mark two centuries of operations and profitability.

"We decided on a 100 percent regular and a 25 percent special dividend to commemorate 200 years of the bank," SBI chairman Purwar said.

(IANS)



It`s two centuries of business for SBI (Business Standard)

It`s two centuries of business for SBI
(Business Standard)
Poornima Mohandas / Mumbai June 02, 2005
On June 2, 1806, a clutch of European merchants � most of whom were Scottish, the East India Company�s Bengal government and 27 wealthy Indians launched the Bank of Calcutta.
 
It had a share capital of Rs 50 lakh, and each share was priced at a princely Rs 10,000.
 
It was one of first western style banks in India which took deposits and gave loans � the deposit taking side of banking was till then alien to indigenous banks. Banking in those days was restricted to caste-based lending � a brahmin got a loan at 15 per cent while a shudra got it at 60 per cent.
 
The Bank of Calcutta was set up to alleviate the financial stress of the East India Company�s government, which had run into severe trouble with wars raging against the Marathas, the French and the ruler of Mysore, Tipu Sultan.
 
It was later rechristened as the Bank of Bengal under a charter of the British crown. Governed by mostly British directors and employing mostly whites and catering to largely white customers, it was almost a foreign bank excepting for the fact that it was incorporated in India.
 
Maharaja Sukhomoy Roy Chaudhry was the lone Indian director of the bank � but that was way back in 1809.
 
There were a few wealthy Indian customers as well. There was prince Dwarkan-ath, poet laureate Rabindranath Tagore�s grandfather.
 
A rich local merchant, he had interests in banking, insurance and coal mines. Records show he took a loan of Rs 60,000 in 1817. The East India Company also created the Bank of Bombay in the Bombay Presidency in 1840 and the Bank of Madras in the Madras Presidency in 1843.
 
These presidency banks were always sticklers for rules. Said Willian Bentinck, the then governor general of India, �This was the bank to do business with which would not violate its rules in the smallest particular for the govenor general himself.� His cheque had just been returned by one of the presidency banks because his account fell four annas short.
 
The Bank of Bengal took its first deposit in 1884 and gave a return of 4 per cent per annum and its first savings deposit in 1902. On completion of the first 100 years, the Bank of Bengal�s deposits were over Rs 24 crore and advances over Rs 16 crore.
 
In 1921 with the merger of the three presidency banks into the Imperial Bank of India the deposits grew to over Rs 92 crore and advances to over Rs 49 crore.
 
In 1955 when the Imperial Bank of India was nationalised to become the State Bank of India, the deposits grew to over Rs 210 crore and advances to over Rs 117 crore.
 
On completion of 200 years, State Bank of India�s deposits have growth over 14,000 times from 1905 levels to Rs 3,56,643 crore and advances by over 13,000 times to Rs 2,09,742 crore.
 
So, how did the Imperial Bank become the State Bank of India? After Independence a debate started between the government and the Reserve Bank of India to nationalise the Imperial Bank of India.
 
Finally, in 1955, an Act of Parliament nationalised it, creating the State Bank of India. The nationalisation wrested majority control with the Reserve Bank of India.
 
At that juncture, SBI had 219 branches and 14,682 employees, today it has about 14,000 branches and a staff strength of 2 lakh (including its seven associate banks).
 
When the bank was nationalised, several European shareholders exited the new entity, and the RBI�s stake soared to 97.1 per cent. One of the Indian shareholders who decided to maintain his stake in State Bank of India was India�s foremost industrialist at the time, J R D Tata.
 
Two centuries down the road, the bank, which was meant to fund the wars of the Bengal government and enrich the European traders, caters to almost every Indian household.



SBI close to joining billion-dollar club (Economic Times)

SBI close to joining billion-dollar club  (Economic Times)  TIMES NEWS
NETWORK[ SUNDAY, MAY 29, 2005 09:04:20 PM] Surf 'N' Earn -Sign innow
MUMBAI: State Bank of India is only a few crores away from becoming a
billion-dollar-profit company. The country�s largest bank has reported a
standalone net profit of Rs 4,304 crore ($989m) for FY05. SBI�s
consolidated profits had already crossed the $1-bn milestone last year
with group profits of Rs 5,463 crore. SBI will be joining the ranks of
ONGC, SAIL, NTPC and Reliance Industries, which have reported net
profits of over $1bn. Indian Oil Corporation, which is yet to announce
results, is also seen as becoming a billion dollar company in FY05.
SBI�s $1bn profit may appear humungous in India, but it is in fact
tiny when compared with the earnings of some of the big banks in the
global market. Citigroup has a net profit of $17bn. Bank of America, one
of the top three banks in terms of market capitalisation, made a profit
of $14bn in December �04. HSBC, which comes close to matching SBI in
branch network (8,000 branches), had reported a net profit of $11.8bn
for �04. SBI, which during its pre-independence days as Imperial Bank,
was one of the largest banks in Asia. It is now working on regaining
its lost glory. This year, when the bank celebrates its bicentennial
anniversary, the bank will embark on �Project Vijay� that will put India
on the global banking map. �The bank has drawn an ambitious plan
to be in the league of big banks called Project Vijay. By �08, SBI plans
to rank itself among the top 50 global banks and among the top five in
Asia in terms of assets and Tier I capital,� SBI chairman A K Purwar
said. Tier I capital consists of equity capital and ploughed back
profits. Currently, it does not figure among the top 50 in the Fortune
500 list of global banks. In fact, three Chinese banks figure in the top
50 banks� list. Mr Purwar said that Project Vijay will be achieved
by organic and inorganic growth. But to achieve this, it will surely
require a lot of money. For instance, HSBC made 110 acquisitions in the
last six years at a whopping cost of $55bn to grow big. Mr Purwar
said that SBI plans 3-4 acquisitions of small to medium size banks and
scale up operations overseas, besides opening more branches overseas.
Internationally, however, inorganic growth has been the key approach by
banks to expand their balance sheet. SBI groups assets base at
$126bn in March �04 was closer to that of HSBC�s ($125bn) in 1975. HSBC
has now grown 100 times to $1.27 trillion as on December �04, mainly
through acquisitions. In terms of net worth, SBI�s Rs 25,000 crore
is just over $5.7bn, which is almost a fourth of that of Industrial and
Commercial Bank of China, which ranks 25 on the world list. The bank�s
market cap of $8bn places it among the top 10 in the Indian stock
markets, but is still less than Citigroup�s profit. In fiscal
�04-05, higher depreciation on treasury portfolio of Rs 2,287 crore, as
against Rs 487 crore last year, took a heavy toll on bank�s bottomline
and as a result it missed the $1-bn mark. But the bank seems very
optimistic about fiscal �05-06, the year in which it may reap the full
benefit of Voluntary Retirement Scheme (VRS) by saving Rs 354 annually.
It had provided for final instalment of VRS, Rs 354 crore in FY05. Also,
the high cost RIB will mature this year in October �05, which will help
it bring down cost of funds from 5.11% to 4.7%. This will improve its
spreads and thereby boost the bottom line. With a largest customer
base and highest market share of 25%, a massive geographical spread of
1,400 domestic branches and 5,200 ATMs; and offices in 32 countries, SBI
group yet has still has a long way to go. While SBI celebrates its
bicentenary year in FY06, it will be a year to watch.