1.  Share capital:
 
 a) During the year, the Bank has allotted 3,60,45,243 shares of Rs10/-
 each for cash at a premium of Rs2,181.69 per equity share aggregating to
 Rs7,900.00 crores under Preferential Allotment to GOI. Out of the total
 subscription of Rs7,900.00 crores received from GOI, an amount of Rs36.05
 crores was transferred to Share Capital Account and Rs7,863.95 crores to
 Share Premium Account.
 
 b) The Bank has allotted 604 equity shares of Rs10/- each for cash at a
 premium of Rs1,580/- per equity share aggregating to Rs9,60,360/- out of
 shares kept in abeyance under Right Issue - 2008. Out of the total
 subscription of Rs9,60,360/- received, Rs6,040/- was transferred to Share
 Capital Account and Rs9,54,320/- to Share Premium Account.
 
 c) The Bank has kept in abeyance the allotment of 83,511 (Previous Year
 84,115) Equity Shares of Rs10/- each issued as a part of Rights issue,
 since they are subject to title disputes or are subjudice.
 
 d) Expenses in relation to the issue of shares : Rs8.79 crores debited
 to Share Premium Account.
 
 Notes:
 
 a.  Investments exclude securities utilised under Liquidity Adjustment
 Facility (LAF) with RBI Rs40,000 crores. (Previous Year Rs27,000 crores)
 
 b.  Investments amounting to Rs5,520.21 Crores are kept as margin with
 Clearing Corporation of India Limited/NSCCL/ MCX/ USEIL towards
 Securities Settlement. In the previous year investments amounting to
 Rs11,117 Crores were kept as margin with RBI/Clearing Corporation of
 India Limited towards Real Time Gross Settlement / Securities
 Settlement (RTGS/NDS).
 
 c.  In terms of RBI Circular DBOD.No.BP.BC.28/21.04.157/2011-12 dated
 August 11,2011 the Bank had reversed Rs93.94 crores and Rs39.00 crores
 from the Profit & Loss A/c to Suspense A/c - Crystallised Receivables
 and  suspense A/c - Profit MTM respectively on account of derivative
 contracts.
 
 d.  During the year, the Bank has infused additional capital of Rs585.00
 Crores in State Bank of Bikaner & Jaipur towards Right Issue.
 
 D) Disclosures on Risk Exposure in Derivatives (A) Qualitative
 Disclosure
 
 i.  The Bank currently deals in over-the-counter (OTC) interest rate
 and currency derivatives as also in Interest Rate and Currency Futures.
 Interest Rate Derivatives dealt by the Bank are rupee interest rate
 swaps, foreign currency interest rate swaps and forward rate
 agreements. Currency derivatives dealt by the Bank are currency swaps,
 rupee dollar options, exchange traded options and cross-currency
 options. The products are offered to the Bank''s customers to hedge
 their exposures and the Bank enters into derivatives contracts to cover
 such exposures. Derivatives are used by the Bank both for trading as
 well as hedging on balance sheet items. The Bank also deals in a mix of
 these generic instruments. The Bank has done Option deals and
 Structured Products with customers, but they have been covered on a
 back to back basis in inter-bank market.
 
 ii.  Derivative transactions carry market risk i.e. the probable loss
 the Bank may incur as a result of adverse movements in interest
 rates/exchange rates/equity prices and credit risk i.e. the probable
 loss the Bank may incur if the counterparties fail to meet their
 obligations. The Bank''s Policy for Derivatives approved by the Board
 prescribes the market risk parameters (cut-loss triggers, open position
 limits, duration, modified duration, PV01 etc.) as well as customer
 eligibility criteria (credit rating, tenure of relationship etc.) for
 entering into derivative transactions. Credit risk is controlled by
 entering into derivative transactions only with counterparties
 satisfying the criteria prescribed in the Policy. Appropriate limits
 are set for the counterparties taking into account their ability to
 honour obligations and the Bank enters into ISDA agreement with each
 counterparty.
 
 iii. The Asset Liability Management Committee (ALCO) of the Bank
 oversees efficient management of these risks. The Bank''s Mid-Office and
 Risk Control (MORC) Department at Treasury, now Market Risk Management
 Department (MRMD) independently identifies, measures, monitors market
 risk associated with derivative transactions, assists ALCO in
 controlling and managing these risks and reports compliance with policy
 prescriptions to the Risk Management Committee of the Board (RMCB) at
 regular intervals.
 
 iv.  The accounting policy for derivatives has been drawn-up in
 accordance with RBI guidelines, the details of which are presented
 under Schedule 17: Significant Accounting Policies (SAP) for the
 financial year 2011-12.
 
 v.  Interest Rate Swaps are mainly used at Foreign Offices for hedging
 of the assets and liabilities.
 
 vi.  Apart from hedging swaps, swaps at Foreign Offices consist of back
 to back swaps done at our Foreign Offices which are done mainly for
 hedging of FCNR deposits at Global Markets, Kolkata.
 
 vii. Majority of the swaps were done with First class counterparty
 banks.
 
 b) Segment Reporting:
 
 1.  Segment Identification
 
 I.  Primary (Business Segment)
 
 The following are the primary segments of the Bank:- — Treasury
 
 — Corporate / Wholesale Banking
 
 — Retail Banking
 
 — Other Banking Business
 
 The present accounting and information system of the Bank does not
 support capturing and extraction of the data in respect of the above
 segments separately. However, based on the present internal,
 organisational and management reporting structure and the nature of
 their risk and returns, the data on the primary segments have been
 computed as under:
 
 i.  Treasury - The Treasury Segment includes the entire investment
 portfolio and trading in foreign exchange contracts and derivative
 contracts. The revenue of the treasury segment primarily consists of
 fees and gains or losses from trading operations and interest income on
 the investment portfolio.
 
 ii.  Corporate/Wholesale Banking - The Corporate/ Wholesale Banking
 segment comprises the lending activities of Corporate Accounts Group,
 Mid Corporate Accounts Group and Stressed Assets Management Group.
 These include providing loans and transaction services to corporate and
 institutional clients and further include non-treasury operations of
 foreign offices.
 
 iii. Retail Banking - The Retail Banking Segment comprises of branches
 in National Banking Group, which primarily includes Personal Banking
 activities including lending activities to corporate customers having
 banking relations with branches in the National Banking Group. This
 segment also includes agency business and ATMs.
 
 iv.  Other Banking business - Segments not classified under (i) to
 (iii) above are classified under this primary segment.
 
 II.  Secondary (Geographical Segment)
 
 i) Domestic Operations - Branches/Offices having operations in India
 
 ii) Foreign Operations - Branches/Offices having operations outside
 India and offshore Banking units having operations in India
 
 III. Pricing of Inter-segmental Transfers
 
 The Retail Banking segment is the primary resource mobilising unit. The
 Corporate/Wholesale Banking and Treasury segments are recipient of
 funds from Retail Banking. Market related Funds Transfer Pricing
 (MRFTP) is followed under which a separate unit called Funding Centre
 has been created. The Funding Centre notionally buys funds that the
 business units raise in the form of deposits or borrowings and
 notionally sell funds to business units engaged in creating assets.
 
 IV.  Allocation of Expenses, Assets and Liabilities
 
 Expenses incurred at Corporate Centre establishments directly
 attributable either to Corporate / Wholesale and Retail Banking
 Operations or to Treasury Operations segment, are allocated
 accordingly. Expenses not directly attributable are allocated on the
 basis of the ratio of number of employees in each segment/ratio of
 directly attributable expenses.
 
 The Bank has certain common assets and liabilities, which cannot be
 attributed to any segment, and the same are treated as unallocated.
 
 During the year, the Bank has further refined the segmental transfer
 pricing mechanism in order to report more relevant segment results.
 This change effects the segment results inter se and has no impact on
 the financials of the bank. The effect of the change on the segment
 results is not fairly determined.
 
 c) Related Party Disclosures:
 
 1. Related Parties
 
 A.  SUBSIDIARIES
 
 i.  DOMESTIC BANKING SUBSIDIARIES
 
 1.  State Bank of Bikaner & Jaipur
 
 2.  State Bank of Hyderabad
 
 3.  State Bank of Mysore
 
 4.  State Bank of Patiala
 
 5.  State Bank of Travancore
 
 6.  SBI Commercial and International Bank Ltd.
 
 (up to 28.07.2011).
 
 ii.  FOREIGN BANKING SUBSIDIARIES
 
 1.  SBI (Mauritius) Ltd.
 
 2.  State Bank of India (Canada)
 
 3.  State Bank of India (California)
 
 4.  Commercial Bank of India LLC, Moscow
 
 5.  PT Bank SBI Indonesia
 
 6.  Nepal SBI Bank Ltd.
 
 iii. DOMESTIC NON-BANKING SUBSIDIARIES
 
 1.  SBI Capital Markets Ltd.
 
 2.  SBI DFHI Ltd.
 
 3.  SBI Mutual Funds Trustee Company Pvt. Ltd.
 
 4.  SBI CAP Securities Ltd.
 
 5.  SBI CAPS Ventures Ltd.
 
 6.  SBI CAP Trustees Company Ltd.
 
 7.  SBI Cards and Payment Services Pvt. Ltd.
 
 8.  SBI Funds Management Pvt. Ltd.
 
 9.  SBI Life Insurance Company Ltd.
 
 10.  SBI Pension Funds Pvt. Ltd.
 
 11.  SBI - SG Global Securities Services Pvt. Ltd.
 
 12.  SBI Global Factors Ltd.
 
 13.  SBI General Insurance Company Ltd
 
 14.  SBI Payment Services Pvt. Ltd.
 
 iv.  FOREIGN NON-BANKING SUBSIDIARIES
 
 1.  SBICAP (UK) Ltd.
 
 2.  SBI Funds Management (International) Pvt. Ltd.
 
 3.  SBICAP (Singapore) Ltd.
 
 B.  JOINTLY CONTROLLED ENTITIES
 
 1.  GE Capital Business Process Management Services Pvt. Ltd.
 
 2.  C-Edge Technologies Ltd.
 
 3.  Macquarie SBI Infrastructure Management Pte. Ltd.
 
 4.  Macquarie SBI Infrastructure Trustees Ltd.
 
 5.  SBI Macquarie Infrastructure Management Pvt. Ltd.
 
 6.  SBI Macquarie Infrastructure Trustees Pvt. Ltd.
 
 7.  Oman India Joint Investment Fund - Management Company Pvt. Ltd.
 
 8.  Oman India Joint Investment Fund - Trustee Company Pvt. Ltd.
 
 C.  ASSOCIATES
 
 i.  Regional Rural Banks
 
 1.  Andhra Pradesh Grameena Vikas Bank
 
 2.  Arunachal Pradesh Rural Bank
 
 3.  Cauvery Kalpatharu Grameena Bank
 
 4.  Chhattisgarh Gramin Bank
 
 5.  Deccan Grameena Bank
 
 6.  Ellaquai Dehati Bank
 
 7.  Meghalaya Rural Bank (Formerly known as Ka Bank Nongkyndong Ri
 Khasi Jaintia)
 
 8.  Krishna Grameena Bank
 
 9.  Langpi Dehangi Rural Bank
 
 10.  Madhya Bharat Gramin Bank
 
 11.  Malwa Gramin Bank
 
 12.  Marwar Ganganagar Bikaner Gramin Bank
 
 13.  Mizoram Rural Bank
 
 14.  Nagaland Rural Bank
 
 15.  Parvatiya Gramin Bank
 
 16.  Purvanchal Kshetriya Gramin Bank
 
 17.  Samastipur Kshetriya Gramin Bank
 
 18.  Saurashtra Gramin Bank
 
 19.  Utkal Gramya Bank
 
 20.  Uttaranchal Gramin Bank
 
 21.  Vananchal Gramin Bank
 
 22.  Vidisha Bhopal Kshetriya Gramin Bank
 
 ii.  Others
 
 1.  SBI Home Finance Ltd.
 
 2.  The Clearing Corporation of India Ltd.
 
 3.  Bank of Bhutan Ltd.
 
 D.  Key Management Personnel of the Bank
 
 1.  Shri Pratip Chaudhuri, Chairman (from 07.04.2011)
 
 2.  Shri R. Sridharan, Managing Director & Group Executive (A& S) (up
 to 30.06.2011)
 
 3.  Shri Hemant G. Contractor Managing Director & Group Executive
 (International Banking) (from 07.04.2011)
 
 4.  Shri Diwakar Gupta, Managing Director & Chief Financial Officer
 (from 07.04.2011)
 
 5.  Shri A. Krishna Kumar, Managing Director & Group Executive
 (National Banking) (from 07.04.2011)
 
 6.  Shri O. P. Bhatt, Chairman (up to 31.03.2011)
 
 7.  Shri S. K. Bhattacharyya, Managing Director (up to 31.10.2010)
 
 2.  Parties with whom transactions were entered into during the year
 
 No disclosure is required in respect of related parties, which are
 State-controlled Enterprises as per paragraph 9 of Accounting
 Standard (AS) 18. Further, in terms of paragraph 5 of AS 18,
 transactions in the nature of Banker-Customer relationship have not
 been disclosed including those with Key Management Personnel and
 relatives of Key Management Personnel.
 
 5.  With regard to disclosures relating to Micro, Small & Medium
 Enterprises under the Micro, Small & Medium Enterprises Development
 Act, 2006, there have been no reported cases of delayed payments or of
 interest payments due to delay in such payments to Micro, Small &
 Medium Enterprises.
 
 3.  Letter of Comfort issued for Subsidiaries
 
 The Bank has issued letters of comfort on behalf of its subsidiaries.
 Outstanding letters of comfort as on 31st March 2012 aggregate to Rs
 2086.56 Crores (Previous Year: Rs 1,411.20 Crores). In the Bank''s
 assessment no financial impact is likely to arise.
 
 4.  Provisioning Coverage Ratio:
 
 The Provisioning to Gross Non-Performing Assets ratio of the Bank as on
 31st March 2012 is 68.10% (Previous Year 64.95%).
 
 5.  Unamortised Gratuity Liabilities
 
 In accordance with RBI circular no. DBOD.BP.BC.80/21.04.018/2010-11
 dated February 9, 2011 the Bank has opted to amortise the additional
 liability on account of enhancement in Gratuity limit over a period of
 5 years beginning with the financial year ended March 31, 2011.
 Accordingly the Bank has charged a sum of Rs 100 crores to the Profit
 and Loss Account, being the proportionate amount for the financial year
 ended March 31, 2012. The unpaid liability of Rs 300 crore as on March
 31, 2012 will be amortised proportionately in accordance with the above
 circular.
 
 6.  Amalgamation of SBI Commercial and International Bank Limited
 Consequent to the notification of the Acquisition of State Bank of
 India Commercial and International Bank Ltd Order, 2011 issued by the
 Government of India, the undertaking of State Bank of India Commercial
 and International Bank Ltd (SBICI) stands transferred to and vests in
 State Bank of India (the Bank), with effect from July 29, 2011, the
 effective date. The results for the year ended March 31, 2012 include
 the results of operations of the erstwhile SBICI for the period from
 July 29, 2011 to the year end March 31, 2012 and the results of the
 Bank are not comparable to that extent.
 
 The amalgamation of State Bank of India Commercial and International
 Bank Ltd (SBICI) with the Bank has been accounted for under the pooling
 of interest method as prescribed in Accounting Standard 14
 Accounting for Amalgamations. Pursuant thereto, all assets and
 liabilities including reserves of SBICI as on the effective date have
 been transferred and vested in the Bank.  The Bank held 100% of the
 share capital of the SBICI on the effective date, which stands
 cancelled. No shares were exchanged to effect the amalgamation.
 
 The Assets and Liabilities of e SBICI Bank Limited taken over are as
 under:-
 
 7.  Inter Office Accounts
 
 Inter Office Accounts between branches, controlling offices and local
 head offices and corporate centre establishments are being reconciled
 on an ongoing basis and no material effect is expected on the profit
 and loss account of the current year.
 
 8.  Disbursement of Special Balancing Allowance
 
 During the year, Rs 908 cores of arrears of Special Balancing Allowance
 was disbursed out of the provision held for Special Balancing
 Allowance. An amount of Rs 41.11 crores was written back to the Profit &
 Loss account during the year ended 31st March 2012, being excess amount
 of provision held for Special Balancing Allowance.
 
 9.  Countercyclical Provisioning Buffer
 
 In accordance with the guidelines issued by RBI vide their circular no.
 DBOD.  No. BP.BC.87/21.04.048/2010-11 dated 21st April, 2011 and the
 dispensation granted to the Bank, the Bank has made an additional
 provision of Rs 1,100.00 crores for the half year ended September 2011
 thus achieving the required Countercyclical Provisioning Buffer of Rs
 3,430.00 crores as on September 30, 2011 as per the above circular.
 
 10.  Additional Provision for NPAs
 
 During the year, the Bank has voluntarily made an additional provision
 of Rs 1,350 crores against certain non performing domestic advances to
 provide for the estimated loss in collectible amount against such
 advances.
 
 11.  Previous period figures have been regrouped/reclassified, wherever
 necessary, to conform to current period classification. In cases where
 disclosures have been made for the first time in terms of RBI
 guidelines/Accounting Standards, previous year''s figures have not been
 mentioned.