LOCATE ANY BANK BRANCH IN INDIA
Established in 1841, and having evolved into one of the most modern and formidable banks in the world today, it boasts of 16,342 branches in all 83 constituent entities of the Russian Federation. It employs around 3, 30,700 people. Almost 70 per cent of the population of Russia uses the services of this bank.
It operates in 22 countries worldwide, has around 11 million customers outside Russia. Overall, it has 137 million retail clients and 1.4 million corporate clients (http://2015.report-sberbank.ru/en/). During 2015, it had client deposits of 19.8 trillion roubles (at current exchange rates it translates into USD 351.88b billion).
Today, it is the only Russian bank which features in the list of top 50 biggest banks in the world. In the top 1,000 World Banks published by The Banker, SBERBANK ranks 34th, rising 15 positions as compared with the previous year.
Equally important is that — within this rating — SBERBANK ranks 1st in the world in ROA (return on assets), 1st in ROE (return on equity) and 5th in asset/equity ratio. In 2013 SBERBANK ranked 63rd in the most valuable global brands rating as published by Brand Finance. The SBERBANK brand was valued at USD 14.16 billion, having risen by almost USD 3.4 billion over one year.
Almost 50 per cent of the bank’s equity is held by the Central Bank of the Russian Federation. Both international and Russian investors feature among the shareholders of SBERBANK. Its ordinary and preferred shares have been publicly traded on the Russian exchange markets since 1996. American Depositary Receipts are listed on the London Stock Exchange, they are admitted to trading on the Frankfurt Stock Exchange and the OTC market of the US.
In May 2010, SBERBANK of Russia was granted a licence for banking operations in New Delhi and promptly completed all procedures required for branch registration. While at the development stage, the main objective of the new unit is to create a strategic springboard into the Indian market that will allow the Bank to support high long-term growth rates of the Group’s business in general.
The Indian branch (SBERIN) made its first loan in 2013 and turned in profits in 2015. In August 2016, India Ratings gave its Rs 100 crore worth certificates of deposit programme a rating of ‘IND A1+’.The Russian head office has provided SBERIN with a committed line of credit, i.e. a USD denominated loan facility of up to Rs 190 crore. Funding under this line is available to SBERIN on an overnight basis, should the need arise. The Russian head office has demonstrated its commitment to support the Indian branch with various equity injections from 2011-2013, amounting to a total infusion of Rs 1.9 billion over this time period.
According to India Ratings, SBERBANK operates through a branch structure in India, with one branch located in Delhi. The branch has a concentrated loan portfolio, with the top 20 exposures making up 100 per cent of the portfolio (FY15 it was Rs3 billion).The branch is also well capitalised with a Tier 1 ratio of 53.64 per cent at FY15 and does not expect further equity from the head office over the near-term. The branch has indicated a focus on trade finance, commercial lending and settlement services to boost incomes. Net interest margin (NIM) for SBERIN rose in FY15 to 8.8 per cent (FY14 it was 7.6 per cent) on the back of interest income from the significant loan book expansion undertaken in the latter months of FY14.
What is IFSC Code
IFSC is short for Indian Financial System Code and represents the 11 digit character that you can usually see on your bank’s cheque leaves, or other bank sponsored material. This 11 character code helps identify the individual bank branches that participate in the various online money transfer options like NEFT and RTGS.
How to find IFSC Code?
Ways to find IFSC codes
- IFSC code can be found on cheque leaf and bank passbook of the respective bank.
- Banks and respective branch list of IFSC codes can be obtained from Reserve Bank of India’s website.
- The IFSC code of a particular bank can also be found on the banks’ official website.
Benefits of IFSC Code
Benefits of IFSC Code are :
- Helps to identify a Bank and its respective branch
- Eliminates errors in the process of fund transfer
- Transfers done with IFSC such as NEFT, RTGS and IMPS are accurate
What is MICR Code
MICR or Magnetic Ink Character Recognition Code is a 9 digit code used for faster processing of cheques. MICR number is also unique for every bank branch, hence it helps in uniquely identifying the bank and branch participating in an Electronic Clearing System (ECS). MICR Code like IFSC is a combination of 3 essential components:
- The first 3 digits represent the city code.
- The middle 3 represent the particular bank code.
- The last 3 digits represent the specific branch code
Benefits of MICR Code
Benefits of MICR Codes are:
MICR code enables efficient, quick and error-free processing of cheques. This is possible with magnetic ink, reading machines and technology used in MICR.
Difference between IFSC and MICR code
ink character recognition code (MICR) is a technology that enables faster
processing of cheques by recognizing unique characters printed on the cheque.
MICR consists of a 9 digit code. The
first three digits of the MICR code represent the city, the next three give the
bank code and the last three digits denote the branch of the bank. Similar to
an IFSC code, every branch of a bank has a specific MICR code. While IFSC is
used for online fund transactions, MICR is used for cheques.
Let’s understand the difference between IFSC and MICR