Objectives of State Bank of India:

1. To establish a strong banking network, so as to serve the people of the country more efficiently.

2. To provide adequate banking facilities to rural people, because there were negligible banking facilities in villages.

3. To provide more and convenient credit facilities for the agricultural sector.

4. To provide financial assistance to small scale sector for their development, so that the overall economy of the country also improves. 

5. To encourage and mobilize small savings and to develop a habit of thrift among villagers and people of small and low-income group. 

6. To provide financial assistance to warehousing schemes for more storage facilities for agricultural products. 

7. To give necessary financial assistance to the weaker sections of the society, so that they become self-supporting and contribute to the economic prosperity of the country.

8. To help in the transfer of funds from one place to another as per the requirements of different agencies. 

9. To assist the Reserve Bank of India in implementing the monetary and credit policies in the country.

Achievements of State Bank of India:

1. The major credit for the development of banking facilities in the country during the past few years belongs to the State Bank of India. In 1993, the total.

number of branches of the State Bank of India was 8,738 and that of subsidiary banks 4,317. The total number of branches of the State Bank of India group was thus 13055 in 1993. 

2. The capital and other reserves of the State Bank of India was more than 1000 crores in the year 1990-91. 

3. The State Bank of India group has rendered a valuable service by opening most of its branches in rural areas of the country. More than 75% of branches are in rural areas and small towns.

4. The number of villages adopted by the bank stood at 56,405 with a quantum of credit to the tune of Rs. 905 crores covering 23.6 lacs farmers in 1984. 

5. The State Bank of India opened agricultural development branches with adequate technical expertise to help the farmers for agricultural development. The number of such branches stood at 432 by the end of 1984 with outstanding advances amounting to Rs. 641 crores covering 16.8 lacs farmers. 

6. By the end of 1984, the bank’s advances to landless labourers, tenant farmers, and sharecroppers accounted for 38% of the bank’s direct agricultural advance. 

7. The bank had advanced a sum of Rs. 1,737 crores to 4.7 lacs small scale industrial establishments up to Dec. 31, 1984. 

8. The State Bank has also extended credit to the weaker sections of the community like tribals, Harijans, persons who are socially handicapped, and disabled, orphans, slum dwellers etc. By the end of 1984, the bank had assisted 3.1 lakh persons under various innovative banking schemes and the total outstanding stood at Rs. 33 crores. 

From the above discussion, it is clear that the establishment of the State Bank of India was an important event in the history of Indian banking. State Bank of India has helped in overcoming the problem of rural credit to a certain extent. With over 13,000 branches, it is evident that the State Bank of India has become a powerful organisation in the Indian banking system besides having offices even in other countries like America and Germany. 

The State Bank of India has helped a lot in the prosperity of our rural areas by providing facilities for agriculturist, weaker sections of the society and cottage and small scale industries, etc. By opening its branches in rural areas it has developed the habit of saving among the residents of rural areas. Another important function of the State Bank of India is its functioning as an agent of the State Bank of India. In fact, it is very difficult for the Reserve Bank of India to open its branches in each and every place and so where there are no branches of Reserve Bank of India, the State Bank of India performs its functions. An eminent scholar has rightly remarked, “If the Reserve Bank of India is the garden of our banking system, the State Bank of India is its Gardner.”