The State Bank of Indore
The State Bank of Indore is a nationalized bank in India and became a Subsidiary of the State Bank of India on 1st January 1960 following the Subsidiary Banks Act in 1959.
It is known as the Indore Bank in the Malwa region of India and was founded by a special charter of His Highness Maharaja Tukojirao Holker-III, the then ruler of the Malwa region.
The State Bank of Indore has been growing ever since and in 1962 it took over the Bank of Dewas and the Dewas Senior Bank in 1965 leading to its categorization as an A-class bank in 1971.
This progress has continued to today where in March 2009 the bank declared a turnover in excess of Rs 49,000 Crore (one crore represents 10 million Rupees).
Like its competitors it also offers a wide range of products with a primary focus on Small and Medium Enterprises (SME’s) as well as agricultural products, Internet banking, forex trading, NRI services, corporate banking, government services and so forth.
The State Bank of Indore has also established a huge network of branches around the major business centers of India in a bid to extend their services to a wider market and also to compete effectively with its rival state banks. Some of these cities include Jodhpur, Udaipur, New Delhi and Mumbai.
However, it has its headquarters located on Yeshwant Niwas Road in the city of Indore which is the largest and capital city of the state of Madhya Pradesh.
The bank has been able to benefit immensely from the facts that Indore has one of the best public transportation systems in India and is also the only city in India to have both an Indian Institute of Management (IIM) and an Indian Institute of Technology (IIT). This allows the city to attract good professionals which might partly explain the success of the bank.
The State Bank of Indore posted a net profit of Rs 278.92 Crore for the financial year ended March 2009 which is a 19 percent increase from the previous financial year (Rs 234.01 Crore).
In the same month after declaring its financial results for the 2008/2009 financial year, the bank announced to its shareholders that it would be splitting its shares which stood at Rs 100 in the ratio of 1/10 i.e. one share would be split ten times to 10 shares at Rs 10 each. It further went ahead to urge its shareholders who had not dematerialized their shares to do so in order to benefit from electronic trading.