Given the system wide economic slowdown, the financial performance of
the Bank during the financial year ended 31st March, 2014, remained
satisfactory. The Bank registered a good growth in Operating Profit
during the fourth quarter of the year as compared to previous quarters.
The Operating Profit of the Bank for 2013-14 was higher at Rs.32,109.24
crores, as compared to Rs.31,081.72 crores in 2012-13, an increase of
The Bank posted a Net Profit of Rs.10,891.17 crores for 2013-14, as
compared to Rs.14,104.98 crores in 2012-13, i.e. a decline of 22.78% on
the back of higher provisioning requirement.
Net interest income
Due to higher growth in the advances and investment portfolios, the
gross interest income from global operations rose from Rs.1,19,655.10
crores to Rs.1,36,350.80 crores during the year registering a growth of
The Net Interest Income of the Bank correspondingly registered a growth
of 11.17% from Rs.44,329.30 crores in 2012-13 to Rs.49,282.17 crores in
Interest income on advances in India increased from Rs.85,782.26 crores
in 2012-13 to Rs.97,674.91 crores in 2013- 14 registering a growth of
13.86%, due to higher volumes. However, the average yield on advances
in India has declined from 10.54% in 2012-13 to 10.30% in 2013-14.
Income from resources deployed in treasury operations in India
increased by 15.24% mainly due to higher average resources deployed.
The average yield has also increased to 7.65% in 2013-14 from 7.54% in
Total interest expenses of global operations increased from Rs.75,325.80
crores in 2012-13 to Rs.87,068.63 crores in 2013- 14. Interest expenses
on deposits in India during 2013-14 recorded an increase of 15.65%
compared to the previous year. The average cost of deposits has
increased by 6 basis points from 6.29% in 2012-13 to 6.35% in 2013-14,
whereas the average level of deposits in India grew by 14.55%.
Non-interest income increased by 15.69% to Rs.18,552.92 crores in 2013-14
as against Rs.16,036.84 crores in 2012- 13. During the year, the Bank
received an income of Rs.496.86 crores (Rs.715.51 crores in the previous
year) by way of dividends from Associate Banks/subsidiaries and joint
ventures in India and abroad.
There was an increase of 22.43% in the Staff Cost from Rs.18,380.90
crores in 2012-13 to Rs.22,504.28 crores in 2013- 14. The main reasons
for increase were higher provision for pension liability due to
revision in mortality table from 01.04.2013, impact of which was
Rs.2,400.00 crores and provision for wage revision to the tune of
Rs.1,814.00 crores. Other Operating Expenses registered an increase of
21.26% mainly due to increase in expenses on rent, taxes and lighting,
law charges, postage, telephones, printing and stationery, insurance
and miscellaneous expenditure.
provisions and contingencies
Major amounts of provisions made in 2013-14 were as under:
Rs.14,223.57 crores (net of write-back) for non-performing assets (as
against Rs.11,367.79 crores in 2012-13).
Rs.1,260.69 crores towards Standard Assets (as against Rs.749.61crores in
2012-13), including the current year''s provision, the total provision
held on Standard Assets amounts to Rs.6,575.43 crores.
Rs.5,282.71 crores towards Provision for Tax in 2013-14, (as against
Rs.5,845.91 crores in 2012-13).Rs.563.25 crores provisions for depreciation
on investments, excluding amortisation of premium on ''Held to Maturity''
category (as against Rs.961.29 crores write back towards depreciation on
investments in 2012-13).
Reserves and Surplus
An amount of Rs.3,339.62 crores (as against Rs.4,417.86 crores in 2012-13)
has been transferred to Statutory Reserves.
An amount of Rs.216.75 crores (as against Rs.19.17 crores in 2012-13) has
been transferred to Capital Reserves.
An amount of Rs.4,796.63 crores (as against Rs.6,453.26 crores in 2012-13)
has been transferred to other Reserves.
The total assets of the Bank increased by 14.43% from Rs.15,66,211.27
crores at the end of March 2013 to Rs.17,92,234.60 crores as at the end
of March 2014. During the period, the loan portfolio increased by
15.70% from Rs.10,45,616.55 crores to Rs.12,09,828.72 crores. Investments
increased by 13.52% from Rs.3,50,877.51 crores to Rs.3,98,308.19 crores
as at the end of March 2014. A major portion of the investment was in the
domestic market in government securities.
The Bank''s aggregate liabilities (excluding capital and reserves) rose
by 14.08% from Rs.14,67,327.59 crores on 31st March, 2013 to
Rs.16,73,952.35 crores on 31st March, 2014. The increase in liabilities
was mainly contributed by increase in deposits and borrowings. The
Global deposits rose by 15.94% and stood at Rs.13,94,408.50 crores as on
31st March, 2014 against Rs.12,02,739.57 crores as on 31st March 2013.
The borrowings increased by 8.24% from Rs.1,69,182.71 crores at the end
of March 2013 to Rs.1,83,130.88 crores as at the end of March 2014.
I. CORE OPERATIONS
At SBI, we believe customers represent the foundation of our
achievements across decades. It is their continuing support in our
vision that has helped us strengthen our legacy as the nation''s most
successful commercial Bank. Therefore, all our strategies and
initiatives revolve around the ''Customer'' and his/her preferences and
Our Customer Service link, available 24 x 7 on SBI-Online, has the
option of Online/Offline Complaint Registration. Also Online/Offline
Appreciation/ Feedback portal provides the feeling of ''Customer
Delight'', to our customers.
The Bank was the first in India to introduce a code of Fair Banking
Practices in the country called ''Towards Excellence''. The code refects
the Bank''s continuing commitment to provide world-class banking
services to all sections of society. Towards this purpose, SBI has laid
down several policies:
Policy on Grievance Redressal
Cheque Collection Policy
Policy on Depositors'' Rights
Policy on Security Repossession/Code of Conduct for Recovery Agents
Policy on Multi-city Cheque
SBI''s Contact Centre caters to customers through inbound calls and
e-mails. It has emerged as a strong alternate channel and is providing
following customer services:
Account Information to customers having ATM-cum- Debit Card (Balance
info, last five transactions, among others).
Debit Card hot-listing and Status of the debit card, ATM PIN
Information on products and services and lead registration.
Registration of complaints.
Pension particulars (Basic Pension, Dearness allowances, status of life
Certificate, among others).
Online trouble shooting for Mobile Banking, Internet Banking and
Status of NEFT/RTGS and SBI Express Remittances.
Contact Centre is available 24x7 through 2 toll free helpline nos. 1800
11 2211/1800 425 3800 and toll number 08026599990. Bank has 4 Contact
Centres at Vadodara, Bangalore, Agra & kolkata.
This helpline provides a human interface of the Bank, thus helping in
migrating the customers from branches. It is estimated that it helps
in reducing footfalls at branches by an average of 20 customers/day per
It is handling approximately 3.50 lakhs calls/day in 12 languages
including Hindi and English. Out of this, Customer Service
Representatives attend approx. 80,000 calls, whereas the remaining
calls are served on self-service options through Interactive Voice
Response System (IVRS).
It is also responding to e-mails received on major SBI Corporate IDs
like firstname.lastname@example.org, ibanking@ sbi.co.in,
email@example.com, feedback. firstname.lastname@example.org
In keeping with our Vision Statement, SBI strives to achieve one of the
highest standards in customer service. Customers have direct access to
relevant Authorities, Controllers and the Management at the apex. Two
days in a month are observed as ''Customer Day'', when Branch Head &
Administration Officers are available to receive suggestions from
customers and resolve their grievances.
The Bank''s mandate is to redress customer grievances within maximum
three weeks of receipt, as against a 30-day timeline prescribed in the
BCSBI Code. All ATM related customer complaints are redressed within
seven days (prescribed by the RBI). The Bank has put in place a
Compensation Policy to compensate aggrieved customers financially for
any slippage in services extended.
Fraud prevention and Monitoring
The Bank has taken several measures to strengthen the internal control
mechanism to prevent frauds.
i. Business Groups
A) National Banking Group
B) Corporate Banking Group
C) Mid Corporate Group
D) International Banking Group
E) Global Market Operation
A) National Banking Group
The National Banking Group (NBG) is the largest business vertical of
the Bank, anchoring 95.24% of total domestic deposits and 52.05% of
total domestic advances, as on 31st March, 2014. It is also the largest
business vertical in terms of branch network and human resources.
RBU, PBBU, REH & HD and SME business units are having business
portfolios above Rupees One lakh crores, each.
exhibit 1: Branch expansion trend
As on rural semi- Urban Metro total
31.03.2013 5,661 4,173 2,631 2,351 14,816
Branches 397 230 264 177 1,068
Branches 2 4 5 4 15
31.03.2014 6,056 4,399 2,890 2,524 15,869*
* Excluding 24 BPR/ other outfits (RACPCs, CPCs, etc.) exhibit 2: NBG
particulars level YTD Growth
As on 31.03.2012 31.03.2013 31.03.2014 Absolute (%)
Segmental 9,12,848 10,47,296* 12,09,898 1,62,602 15.53
Segmental 4,29,509 4,89,216* 5,27,480 38,264 7.82
* excluding account transfer to MCG during FY 2013-14
Financial Inclusion (FI)
The Bank has set up 45,487 Business Correspondent (BC) Customer Service
Points through alliances both at the national and regional level.
The Bank is offering Various technologically enabled products through
BC channel, such as Savings Bank, flexi RD, STDR, remittance and SB-OD
The Bank has achieved 100% coverage across 31,729 villages during FY
2013-14. The cumulative coverage totalled 52,260 villages.
Over 11,423 BC outlets have been set up across urban/ metro centres,
which cater to the requirements of migrant labourers and vendors, among
others. During FY 2013-14, 226 lakhs remittance transactions for Rs.9,983
crores were registered through BC channel.
During FY 2013-14, the Bank has opened 1.50 crores small accounts with
simplified kYC, taking the overall tally to 3.53 crores accounts.
The transactions volume through the BC Channel has grown to Rs.22,525
crores during FY 2013-14 as against Rs.13,033 crores during FY 2012-13.
To facilitate transactions through alternate channels, the Bank has
issued 24 lakhs FI Rupay ATM Debit Cards to FI customers.
linking of villages to branches through CSPs in a hub- and-spoke model
has been launched and 69,749 villages have been linked so far. A
facility of depositing loan repayments at 31,919 BC outlets has also
Direct Benefit Transfer (DBT) Scheme has been successfully rolled-out.
The Bank has successfully completed 27.41 lakhs transactions amounting
to Rs.505 crores as Sponsoring Bank in addition to handling 7.1 lakhs
transactions amounting to Rs.98.61 crores as Receiving Bank. Overall 1.36
crores accounts were linked with Aadhaar across the country.
SBI is the sole Sponsoring Bank for DBT for LPG transactions, which are
processed centrally for all the three Oil Marketing Companies; over
8.98 crores transactions amounting Rs.5,393 crores were successfully
Over 4.46 lakhs SHGs are credit linked with credit deployment of Rs.5,134
crores. Our market share in SHGs is 22%.
The Bank retained its leadership in Agri Business by crossing Rs.1,16,081
crores under agri-segmental advances covering over 1.13 crores
customers. A total of 5.13 lakhs new customers were brought in the
Bank''s fold during FY 2013-14.
Short-term production credit constituting KCC and Agri Gold loan,
recorded 14% Y-o-Y growth.
Average agri loan ticket size increased to Rs.1.03 lakhs through
migration of crop loans to revised Kisan Credit Card scheme operated
through ATM enabled State Bank Kisan Cards.
The number of Kisan Credit Card issued by Bank crossed 61.60 lakhs
during FY 2013-2014.
Flow of credit to Agriculture
As in the past, the Bank has surpassed Agri credit flow target set by
GOI during FY 2013-14.
exhibit 4: Flow of credit to Agriculture trend
Year target Disbursement %
FY 2011-12 51,000 53,214 104%
FY 2012-13 60,000 63,936 106%
FY 2013-14 73,500 74,970 102%
new products Launched
To meet the emerging needs of the farmer in tune with market dynamics,
the Bank has rolled out new loan products - ''Multi-Purpose Agri Gold
loan'' a hassle-free and tailor-made product to tap the potential in
Agri Gold loan business for all investment credit needs, such as minor
irrigation, horticulture and farm machinery, among others.
To create awareness among farmers and to improve coverage/penetration
of the Bank''s Agri products, special campaigns were launched.
KCC Campaign: To drive growth in KCC loan portfolio through renewal and
migration of existing KCC accounts under the revised KCC scheme, a
business of Rs.6,841 crores was garnered under the campaign in FY
Swarnadhara Campaign: To promote Agri gold loans and Multi-Purpose Agri
Gold loan, the campaign was re-launched quarterly and mobilised a
business of Rs.4,342 crores during FY 2013-14.
Tractor Loan Carnival: To promote ''New Tractor loan scheme'', which was
dovetailed to capture and regain the competitive tractor market and
garnered a business of Rs.274 crores in FY 2013-14.
Krishi plus: To target the existing high-value agri borrowers (limit of
Rs.3 lakhs and above) with good track record for the sanction of an
additional loan to capture growth with quality. A total of 4,148
accounts, aggregating to Rs.108.15 crores, have been sanctioned under the
Bonding with Farmers
SBI Kaapna Goan Scheme: During FY 2013-14, 121 new villages were
adopted under ''SBI ka Apna Goan Scheme'' for overall development, taking
the total number of villages adopted to 1,393.
Farmers Club: A total of 145 new Farmer Clubs were formed for fostering
continued relationship with the farming community taking the total
number of Farmer Clubs to 10,670 as on 31st March, 2014.
Hub-and-Spoke Model with BC network: The Bank has established linkage
with 67,489 villages through 34,064 rural CSPs for scouting
applications from customers residing in remote unbanked areas and
bringing them into the banking fold.
loan origination software (LOS): loan Origination Software applications
support tracking and recording all processes from sourcing to sanction,
documentation, control and subsequent account opening in CBS, resulting
in avoidance of repetitive work.
Personal Banking Business Unit (PBBU)
Domestic Deposits have grown by Rs.1,17,100 crores (16.87%) and Advances
by Rs.6,702 crores (7.43%) as on 31st March, 2014. CASA Deposit has grown
by 15.51% and CASA Ratio as on 31.03.2014 is 46.95%. During the year,
we have taken the following steps to strengthen our Savings Bank
product and to make it more competitive:
Online Account opening facility has been popularised.
Personal Accident Insurance was enhanced by adding two new insurance
cover slabs of Rs.10 lakhs and Rs.20 lakhs.
Medical Insurance was introduced for Savings Bank Account holders.
Number of free multicast cheques was linked to the Average Quarterly
The above mentioned initiatives strengthened customer acquisition.
The number of Premier Banking customers has increased from 2,78,509 to
3,57,679 customers during FY 2013-14. There is 27% growth in deposits
in this segment.
During the year, four exclusive HNI branches and 45 new PBBs were
During FY 2013-14, NRI Deposits have grown by Rs.32,518 crores (42%) and
reached a level of Rs.109,958 crores as on 31.03.2014. Advances to NRIs
recorded a growth of Rs.538 crores (24%) during the FY 2013-14, the level
reached being Rs.2,751 crores as on 31.03.2014. We had also launched the
special FCNB scheme to mobilise foreign currency deposits under the
RBI''s special SWAP window from 04.10.2013 to 25.11.2013 and garnered an
amount of USD 3089 million.
The Bank has been to make the most of our available services and
products through online channels. Therefore, we recently launched the
Online Account Opening facility for NRI customers.
SBI was the Principal Sponsor of Pravasi Bharatiya Divas, an annual
flagship event for NRI Diaspora from all over the world, organised by
the Ministry of Overseas Indian Affairs, which was held at Vigyan
Bhavan, New Delhi from 7th-9th January, 2014.
To strengthen our pre-eminent position in the area of NRI Services, we
have opened five new NRI branches in India during the current financial
year, taking the number of total NRI branches to 74. These dedicated
branches have an excellent ambience, along with a well-skilled team of
officials to serve NRI customers. Apart from these branches, there are
also about 100 NRI intensive branches across all Circles servicing
substantial volumes of NRI business.
Corporate and Institutional Tie-Ups
The Bank now has customised Special Salary Packages for employees of
Corporate, Defense, Para Military, Railways, Central Government, State
Governments as well as Police, which enable a focused marketing
Related Assets and liabilities business garnered from this niche group
is Rs.36,970 crores in Time Deposits and Rs.29,999 crores in retail loans
comprising Home loans (Rs.14,913 crores), Auto loans (Rs.3,135 crores),
Xpress Credit loans (Rs.11,951 crores). Four hundred and sixty six new
tie-ups were entered under the Corporate Salary Package during FY
exhibit 6: corporate & institutional tie-Ups
particulars 31.03.2013 31.03.2014 Growth in
Defence Salary 22,27,930 23,79,925 1,51,995 6.82
Other Salary 48,51,168 51,85,098 3,33,930 6.88
Total No of 70,79,098 75,65,023 4,85,925 6.86
CASA 21,262 24,735 3,473 16.33
The Auto loan portfolio has grown by 12.60% during FY 2013-14, despite
negative growth in the passenger car market. The Bank is currently
offering car finance on ''On Road Price'' of the car, with longest
repayment period of 7 years, no pre-payment penalty, no advance EMI and
at competitive interest rates. A new online Car loan application system
was launched and rolled out pan-India to source Car loans online.
SBI Education loans has grown at 7.19% YoY (during FY 2013-14). SBI has
a total exposure of Rs.14,740 crores as on March 2014. SBI is the market
leader in Education loans with a market share of around 24.9% among
ASCB as on February 2014.
SBI Student plus advantage Credit Card, designed specifically for
education Loan Borrowers, was launched in collaboration with SBI Cards
Ltd. to provide them with an additional means of financing their
expenditure whenever needed.
The Personal loans Portfolio, which is the second largest in the
Personal Banking Segment with an outstanding of Rs.48,432 crores as on
31.03.2014, includes Personal loans, loan against Securities, loan
against Properties and Gold loan. It has grown by Rs.2,244 crores during
FY 2013-14. loan against Time Deposits, which is one of the major
products in Personal loans Portfolio, grew by Rs.1,162 crores.
Real estate, Habitat & Housing Development (REH & HD)
During FY 2013-14, the Bank has recorded an all time high growth of
Rs.20,849 crores in home loans and maintained its position as the
country''s largest home loan provider. The market share amongst All
Scheduled Commercial Banks (ASCB) in home loans has improved by 8 bps
from 25.94% (as on 31.03.2013) to 26.02% (as on 31.03.2014).
exhibit 7: performance in Home loans (Rs. in crores)
particulars FY 2011-12 FY 2012-13 FY 2013-14
levels 1,02,739 1,19,889 1,40,738
YTD Growth 12,826 16,728 20,849
YTD Growth (%) 14.26% 16.30% 17.38%
During FY 2013-14, the Bank took several initiatives to provide an
additional thrust to its Home loan portfolio. Some of the important
initiatives in this regard comprise the following:
A new product named ''SBI HER GHAR'' offering a concession of 5 bps on
the prevailing Home Loan interest rates was introduced for women
borrowers in December, 2013. The Scheme has been well accepted in the
market and now accounts for 24% of the incremental sanction of home
Select branches at major centres have been authorised for execution of
home loan documents to enhance the level of customer convenience and
The maximum permissible moratorium period under a different scenario
has been revised and a higher moratorium period of up to 48 months has
been permitted for integrated township and Mega projects.
Innovation and new products: We have developed risk- mitigated products
for SMEs, such as SBI Asset Backed loan, SBI Fleet Finance Scheme and
POS linked Current Account with Overdraft Scheme, which are launched in
FY 2013-14. We are incorporating sector-specific Scoring Models in the
new products and schemes to screen the borrowers at an initial stage to
facilitate faster processing.
Relationship Banking: Under a single-window approach, the Bank is
offering Relationship Banking to SME Entrepreneurs. The strength of
Relationship Managers (Medium Enterprises) was augmented to 597 as on
31.03.2014 and mapped to ME units with credit limits of Rs.1.00 crores
and above across the country. The advances portfolio under Relationship
banking as on 31.03.2014 is Rs.1,37,180 crores.
Specialised SME Branches: To provide specialised services to SME
Entrepreneurs, 579 branches with a predominant portfolio of SME
advances are branded as ''SME Branches''.
The objective is to identify these branches with a common nomenclature
and develop them as centres of excellence for SME loan delivery.
credit Flow to Micro and small enterprises (CGTMSE):
The Bank is extending collateral-free lending up to Rs.1 crores to MSE
sector under guarantee of CGTMSE.
Exhibit 9: performance in CGTMSE (Rs. in crores)
particulars As on As on Growth
31.03.2013 31.03.2014 (% increase)
(% to total 7,263 9,740 2,477
SME advances) (34.10%)
No of customers 1.71 2.09 0.38
(in lakhs) (22.22%)
Loan origination Software (LOS) for SME: The LOS for SME Business Unit
has been conceived to capture the pre- sanction process of advance
portfolio, thereby ensuring quality and uniform standards of credit
dispensation and finally ensuring a robust record and information
retrieval system. The LOS system helps in handling a large volume of
applications, eliminates repetitive work and improves the record and
As on 31.01.2014 one of the schemes of the SME BU i.e. ''SME Smart
Score for loans up to Rs.25 lakhs'' under LOS was soft launched across all
Circles by the GITC, Belapur.
Supply Chain Finance
Leveraging its state-of-the-art technology, SBI is focusing on further
strengthening its relationship with the Corporate World by financing
their Supply Chain partners.
The Bank has tied up with 70 industry majors across all industry
verticals, such as Auto, Oil, Steel, Power, Fertilizer, FMCG and
Textile under e-DFS.
Exhibit 10: performance in electronic
Dealer Finance scheme (Rs. in crores)
particulars As on As on Growth
31.03.2013 31.03.2014 (% increase)
limits 6,532 9,487 2,955 (45.24%)
Out standings 4,785 7,533 2,748 (57.42%)
Exhibit 11: performance in electronic
Vendor Finance scheme (Rs. in crores)
particulars As on As on Growth
31.03.2013 31.03.2014 (% increase)
limits 2,960 3,865 905 (30.57%)
Out standings 1,164 1,742 578 (49.66%)
SME Insta Deposit Cards: There are 1,516 CDMs installed at Various
locations across the country, as on 31st March, 2014. The Bank has
issued 2,16,847 SME Insta Deposit Cards and 1,33,576 Business Debit
Cards to SME customers.
Cash pick up Facility: The cash pickup facility of collecting cash at
customers'' doorsteps was introduced for SME customers in August 2011.
The growth in usage of this facility has been as under:
Exhibit 12: performance in
Cash Pickup Facility (Rs. in crores)
particulars As on As on Growth
31.03.2013 31.03.2014 (% increase)
No. of 486 656 170 (35%)
Amount of cash 2,246.75 4,860.55 2,613.80
SME power Current account: As on 31.03.2014, the number of Power
Accounts stands at 28,215, constituting a deposit base of Rs.3,032.44
crores, as against Rs.2,741 crores in 26,160 accounts as on 31.03.2013.
Unfixed Deposits: The popularity of Unfixed Deposits, launched during
November 2011, received good response from a large section of SME and
Corporate Client base. The deposit under the scheme grew to a level of
Rs.42,159 crores as on 31.03.2014.
The Bank handles government transactions (receipts, payments, pensions,
among others) as an agent of the RBI on behalf of the Government and
Various state governments through its authorised branches. During FY
2013-14, the Bank was able to retain its position as the market leader
in this business segment, with a market share of around 58% in terms of
handling government payments and receipts.
The Bank earned commission from Government transactions of Rs.16.59
billion and Rs.17.80 billion during FY 2013-14 and FY 2012-13,
The decline in government commission during FY 2013-14 by 6.70% over FY
2012-13, despite a growth of 10.92% in Government turnover is due to:
Migration of Government Receipts on e-mode (which earn Rs.12/- per
transaction as against Rs.50/- for physical transaction).
Higher rates of commission were applicable during Q1 FY 2012-13.
The Bank is facilitating the Government of India''s e-governance
initiatives by launching multiple e-products, such as e-Auction,
e-Freight, Rail Shakti, Fee collection for Passport and Various
examinations, Imprest Cards, Central Plan Scheme Monitoring System,
SAAKSHAR Bharat, among others . Many other e-products are expected to
be launched during FY 2014-15.
Marketing and Cross Selling
SBI is Corporate Distributor of SBI life, SBI Cards, SBI Cap Securities
ltd. and SBIMF, along with four other major AMC tie-up partners, such
as UTI MF, Tata MF, Franklin Templeton MF & l&T MF, through our
The Bank''s cross selling income has increased to Rs.282 crores as on
31.03.2014 from with YTD growth of 14%, as compared to Rs.274 crores as
on 31.03.2013. SBI life insurance policy has covered 51% of the
Bank''s home loan borrowers and 50% of education loan borrowers during
FY 2013-14. A new Health Personal Accident Insurance product,
launched by State Bank General Insurance, sold 1.44 crores Policies and
SBI General has issued 44,000 health insurance policies during the
year. State Bank Card & Payment Services Private ltd. has issued a
total of 25,000 credit cards and we have opened 1,20,000 Demat and
Trading accounts through our subsidiary SBICAP Security ltd. during FY
B) corporate Accounts Group (CAG)
CAG is the dedicated SBU for handling the ''large credit'' portfolio of
the Bank. The SBU has 7 Offices in 6 regional centers viz. Mumbai,
Delhi, Chennai, kolkata, Hyderabad and Ahmedabad headed by General
Managers. The business model of CAG is centered around the Relationship
Management concept and each client is mapped to a Relationship Manager
who spearheads a cross-functional Client Service Team. The Relationship
strategy is anchored on delivering integrated and comprehensive
solutions to the clients, including structured products, within a
strict Turn-Around-Time. The principal objective of the strategy is to
make SBI the first choice of the top corporate thereby increasing the
wallet-share and improving the Return on Capital Employed. A sustained
Account Planning exercise with rigorous review of the account by senior
management sets the pace for the Relationship Management in CAG.
exhibit 13: Business performance of CAG (Rs. in crores)
Facility FY 2012-13 FY 2013-14 Growth (YoY)
Fund Based 175,831 242,718 38%
Non Fund 409,477 466,598 14%
While the Fund Based out standings of CAG constitutes 20% of total
credit portfolio of the Bank, CAG also handles about 61% of the
domestic forex business of the Bank. During the year, CAG handled
several high value deals eg. Power Grid Corporation, DVC, Tata Steel,
Hindalco Industries, etc.
In addition to rupee loans, many clients of CAG borrow significantly in
foreign currency. During the year, substantial business was generated
not only from Oil PSUs, but also from clients in the private sector.
Around 44% of CAG''s exposure is to Infrastructure sector of which 85%
is to corporate with ratings of Investment Grade and above, and the
risk profile of sectoral movement is well balanced.
In the backdrop of the robust growth of CAG-Mumbai, a second Office in
BkC, Mumbai was opened during September -13, and it is proposed to open
another office in Delhi shortly so as to ensure that the high standards
of asset quality and service delivery are maintained.
Transaction Banking Unit (tBU)
TBU, with special focus on Cash Management Products, Trade Finance and
Supply Chain (Dealer / Vendor) Finance, which started working in
full-fudged manner during the year 2009-10, has expanded its activity
during the last four years.
cash Management product (CMP): The Bank provides Cash Management
Services SBI F.A.S.T.- (Funds Available in Shortest Time) to
Corporate customers through 1450 branches at 757 centres spread over
the country by means of a technology driven platform. The Bank''s entire
network of over 15,500 branches is also offered to large Corporate,
Non-Banking Finance Companies and Insurance Companies for their Cash
Management needs through certain ''Premium Products'' such as Power jyoti
Pre-upload. The whole spectrum of Cash Management services
encompassing liquidity Management, Cheque and Cash collections,
Doorstep Banking for Cash and Cheque pickup, collections for Public
Issues (IPO/Bonds), e-Collections, Post dated Cheques management,
Mandate based debits and Payment services comprising Dividend Warrants,
Multi City Cheques, Inter Office Instruments and e-payment are offered.
CMP Centre is the Sole Refund Banker for Central Board for Direct
Taxes (CBDT). CMP Centre has brought about integration of payment
Systems of Controller General of Defence Accounts, Civil Ministries
under UMEA and some State Governments with the Core Banking
Infrastructure of the Bank by providing Centralized e-Payment Solution
enabling the Government Departments to achieve their objectives under
National e-Governance Project (NEGP).
Trade Finance: As on 31.03.2014, lC/BG business and income under CAG
recorded a YoY growth of 14% and 30% respectively despite the general
economic slowdown, a result delivered on the back of the superior
SBI has established an excellent technology and operation
infrastructure for its Trade Finance business. e-Trade SBI, a web-based
portal, which was launched by our Bank in March 2011, has been
undergoing constant improvement to enhance customer comfort and provide
the means to customers to access trade finance services with speed and
efficiency by enabling them to lodge letters of Credit, Bank Guarantees
and Bills Collection/negotiation requirements online from any corner of
the world. As on 31.03.2014, 1748 Corporate are registered under
e-Trade SBI and more than 15000 transactions per month are taking place
through e-Trade platform.
e-VFS (Electronic Vendor Financing Scheme) & e-DFSD (Electronic Dealer
Leveraging our Bank''s state-of-the art technology, our relationship
with the Corporate World has been further strengthened by financing
their Supply Chain Partners through the above two products which are
fully automated, secured and robust. They are designed to ensure
efficient management of working capital cycle, sustained growth and
profitability of business partners. As on 31.03.2014, 95 industry
Majors (IMs) with more than 900 vendors and 3,000 dealers across the
country have been migrated to the electronic facility under the
Financial institutions Business Unit (FIBU): FIBU, a dedicated vertical
created for capturing potential business opportunities from financial
institutions viz. Banks, Mutual Funds, Insurance Cos., Brokerage forms
Capital Market Branch (CMB), Mumbai under FIBU, a specialised branch
catering to Capital Market business and Brokers was given the award of
being one of the ''Top Performers in BSE in Primary Market segment'' by
Bombay Stock Exchange for the third consecutive year. CMB has also
acted as ''Bankers to Issue/Refund Banker'' and mobilized over Rs.18,000
crores in FY 2014.
project Finance & leasing SBU (PFSBU)
Exhibit 14: Business performance (Rs. in crores)
Project Cost 1,66,299 1,23,601
Project Debt 88,033 84,667
Sanctioned Amt. 24,119 16,408
Syndication Amt 33,454 13,438
PFSBU deals with the approval and arrangement of funds for large
projects in infrastructure sectors like power, telecom, roads, ports,
airports, as also other non-infrastructure projects in sectors like
metals, cements, oil & gas, among others, with certain threshold on
minimum project cost. PFSBU also provides support to other verticals
for vetting their large ticket term loan proposals. In order to
strengthen the policy/ regulatory framework for financing
infrastructure, inputs are also provided to Various ministries of Govt.
of India, Planning Commission, RBI etc. in respect of lenders'' views on
new policies, Model Concession Agreements, issues being faced in
infrastructure financing, etc.
Business performance of PFSBU: As on 31.03.2014, the portfolio of
infrastructure projects under implementation and control with PFSBU
involves Power projects with aggregate capacity of 49,335 MW; Telecom
Projects serving 250 million subscribers; Road projects covering 5,565
kms; new Ports to handle 45 MTPA multi- purpose cargo and 1.2 million
TeU of container capacity; Metro Project in Hyderabad besides a host of
projects in steel, cement, Urban Infra, etc. During the year, a total
(FB NFB) of Rs.9,691 crores (Rs.12,884 crores in FY13) were disbursed to
From the perspective of environment sustainability, the Bank has also
been laying emphasis on the renewable sector in power generation and
loans aggregating Rs.1,253 Crores (FB limit) have been sanctioned to 10
projects in wind/solar sectors with total capacity of 624 MW.
exhibit 15: significant deals during FY 2013-14
Aircel limited (Including To provide telephony services
Aircel Cellular ltd, Dishnet in 2G, 3G and Broadband
Wireless ltd. and Aircel services across country.
Smart Money ltd.)
Petronet lNG ltd Phase III Expansion of 5 MMTPA from
Dahej (Promotedby ONGC, existing 10 MMTPA facilities.
BPCl, GAIl and IOCl)
JSW Steel ltd Expansion of 1.5 MTPA
integrated steel plant from
existing 3 MTPA ISP at Dolvi,
Tata Tele services To provide telephony services
in 2G, 3G and data services
on both GSM and CDMA
technology across country.
Orient Cements Greenfeld 3 MTPA cement
project (Promoter CK
Birla group) at Gulbarga,
c) Mid corporate Group
The Bank''s Mid Corporate Group (MCG) operates through its 14 regional
offices across Ahmedabad, Bangalore, Chandigarh, Chennai (2), Hyderabad,
Indore, kolkata (2), Mumbai (2), New Delhi (2) and Pune, and has 62
branches as on 31st March, 2014.
MCG customers in Eastern India now have easier access to senior
officials. This has also resulted in improved credit delivery, with a
greater thrust on attracting good quality new business.
Two new MCG branches were opened during FY 2013-14 at ludhiana (the
second branch of the city) and Vijayawada, in order to fully tap the
business potential at these centres. This increases the number of Mid
Corporate branches from 60 to 62.
The Group continues to assist our customers in India to expand their
activities and provides them support for acquiring assets/companies
overseas, including by way of loans to overseas subsidiaries/JVs
(backed by letters of Comfort or Stand-by letters of Credit). Over the
years, the Group has helped many such acquisitions by Indian companies
in USA, Europe, Australia and Africa, among others.
D) International Banking Group
The Bank''s international banking network spans across 190 offices in 36
exhibit 17: Business performance
of Foreign offices (In USD Million)
31.03.2013 31.03.2014 YoY YoY
Net Assets 42,146.10 45,192.98 3,046.87 7.23
Net Customer 31,148.54 35,772.57 4,624.04 14.85
Deposits 13,374.41 14,758.33 1,383.93 10.35
Operating profit 660.35 676.41 16.05 2.43
The number of foreign offices increased from 186 as on 31st March, 2013
to 190 as on 31st March, 2014 spread across 36 countries. The offices
include 52 branches, 8 Representative Offices, 110 offices of the 7
foreign banking subsidiaries and 20 other offices. During FY 2013-14, we
have forayed into two new countries in Botswana by establishing a
subsidiary and in South korea by opening a representative office.
exhibit 18: Break-up of foreign offices (No.)
FY New offices FY
2012-13 opened during 2013-14
Branches /Sales Office / 68 1 68
Other Offices* (1 closed)*
Subsidiaries (6) (1) (7)
(Figures included in offices)
Offices 107 3 110
Representative Offices 7 1 8
Associates /Managed 4 0 4
total 186 4 190
* Maamigili sub-office in Maldives was upgraded to a Branch and Jackson
Heights branch in the USA was closed.
The Bank''s foreign offices maintained comfortable liquidity position
during the fiscal, despite volatile market conditions. In April 2013, we
successfully priced a USD 1 billion Bond issue, which is a
144A/Regulation S offering and will mature in April 2018.
In September 2013, SBI undertook a Bond Buy Back programme under which
Bank bought back USD 147 million worth of April 2018 bonds.
Our foreign offices introduced a leverage product for NRIs in November
2013 to increase Foreign Currency Non- Resident Bank (FCNRB) deposits
under the Special Swap window scheme of RBI. An amount of USD 2.518
billion was disbursed to NRIs at Foreign Offices under this scheme.
Inward remittances grew from Rs.69,812 crores in FY 2012- 13 to Rs.86,817
crores in FY 2013-14 (24%). Tie-ups with 30 exchange companies and six
banks in the Middle-East Countries for routing remittances through our
Bank have substantially contributed to increased inward remittances.
The Bank retained its premier position as Mandated lead Arranger and
Book Runner for syndicated loans in Asia Pacific (ex-Japan) for the
eighth consecutive calendar year ending December 2013 and sustained its
lead position in January-March 2014 period too.
During 2013-14, we acted as the Mandated lead Arranger in 18 deals
aggregating USD 11.926 billion for several leading Indian corporates
like Tata Steel Canada Capital ltd., LOCL, HPCL, OIL, ONGC Videsh, REC,
ONGC Mangalore Petrochemical ltd., Reliance Industries, HDFC ltd., IDFC
ltd. and Yes Bank.
exhibit 19: syndicated loan Deals
No. of Deals Amount
(in USD bn)
FY 2012-13 17 6.292
FY 2013-14 18 11.926
Apart from this, we extended 23 foreign currency facilities aggregating
USD 4.611 billion to Indian corporate on a bilateral basis. We also
acquired 5 loans amounting to USD 120.00 million through the secondary
The Bank earned a fee income of USD 79.70 million from foreign currency
term loans concluded during FY 2013-14 through syndication/ bilateral
Global link Services (GLS)
Global link Services (GLS), a specialised outfit, caters to centralised
processing of Export Bills collection, Cheque collection and online
inward remittance transactions.
During FY 2013-14, GLS (on behalf of domestic branches) handled 75,177
export bills and 58,248 foreign currency cheque collections aggregating
USD 13.20 billion. In addition, it handled 78,49,396 online inward
remittance transactions amounting to USD 6.10 billion received
During FY 2013-14, the Bank launched a new online instant remittance
product ''Sri lanka to India SBI Flash'' for remittances from Sri lanka
to India. GLS has also developed a platform for cross border
remittances from Gulf to Bangladesh/ Nepal/ Sri lanka.
The Bank maintains correspondent banking arrangement with 385 reputed
International Banks across 113 countries in order to extend seamless
services to Varied clients. Along with the correspondent banks, we
also have more than 1,725 Relationship Management Application (RMA)
arrangements with Society for Worldwide Interbank Financial
Telecommunication (SWIFT), facilitating speedier flow of financial
e) Global Markets operations
Global Markets Group performs the treasury functions of the Bank,
ensuring safety, liquidity and yield, besides maintaining statutory
reserve requirements. The corpus under management of Global Markets
increased by around 20% Y-o-Y to Rs.4,70,000 crores. Further, Global
Markets Group provides foreign exchange services and hedging
instruments for risk management to customers. It also offers portfolio
management services to many retirement funds.
The FY 2013-14 started on a positive note with RBI cutting the repo
rate by 25 bps to 7.25% in May 2013. The 10 year benchmark yield fell
from 8.01% in April 2013 to 7.09% in May 2013. However, conditions
deteriorated for Indian financial markets after Federal Reserve''s
announcement of its intention to taper QE purchases which led to a
sharp depreciation of the rupee.
The Reserve Bank of India (RBI) announced unprecedented measures like
capping Repo borrowing to 0.5% of NDTL and increasing MSF rate by 200
bps to 10.25% which led to a sudden surge in bond yields to 9.48%.
Conditions improved from October 2013 onwards with RBI gradually
reversing many of the tightening measures and injecting liquidity into
the financial system through term repos. As RBI remained focused on
inflation control, benchmark yields closed the year at elevated levels.
During FY 2013-14, the Bank made record profit of Rs.1,846 crores from
sale of investments as against Rs.180 crores in FY 2012-13. Moreover, in
the area of cash management, we have consistently outperformed peer
banks in CRR maintenance by about 270 basis points, resulting in
interest cost savings of over Rs.100 crores.
Equity markets witnessed a rally from September on improvement in
macroeconomic parameters like stable exchange rate and current account
deficit buoying FII inflows. During FY 2013-14, the Bank''s active equity
portfolio (excluding Non Performing Investments) yielded a cash flow
return of 22.73% against a Nifty return of 17.12%. If we reckon the
dividend income, the return improves further to 25.56%. During the
year, the Bank participated in select Equity MFs, IPOs, Offers for Sale
The Bank continued to explore opportunities in the area of private
equity and venture capital fund investments. During FY 2013-14,
investments of Rs.345 crores were made in different venture capital and
private equity funds.
Global Markets provides foreign exchange solutions to the customers in
all currencies for managing their currency flows and hedging risks
through options, swaps, forwards and bullion services. As part of its
continuous endeavour to provide enhanced services to its customers, the
Bank has also introduced digital signatures for its corporate
customers. The Bank also leverages a world class technology platform to
seamlessly process currency flows between its customers through branches
and the dealing room.
The treasury marketing outfits complement this by engaging with
customers to provide them with inputs about markets and suggesting
products to suit their requirements. The Bank earned an income of over
Rs.1,470 crores (from domestic operations) by covering the customer flows
in foreign exchange, hedging, gold, and proprietary trading.
Global Markets also manages FCNR(B) corpus of the Bank and provides
funds for Export Finance in Foreign Currency and FCNR(B) loans in
foreign currencies for the customers in India.
The Bank provides portfolio management services to an array of
retirement funds in the country consistently giving superlative
returns. The Portfolio Management Services section, with an AUM of over
Rs.2,79,000 crores has consistently outperformed private sector peers in
generating returns for the Employees Provident Fund Organisation (EPFO)
funds. For the last three years, your Bank has been consistently
adjudged as the best fund manager for EPFO.
The Bank was ranked the ''Best Local FX Bank in India'' in Asia money''s
25th anniversary poll of polls for its consistently stellar
performances in Asia money''s annual polls.
I.2 New Businesses
A dedicated department develops and launches initiatives in emerging
business areas, including tech-based products. Some key initiatives
State Bank Group (SBG) continues to lead Debit Card issuance in the
country with over 150 million Debit Cards as on 31st March, 2014 and
over 40% market share.
Spending by debit cardholders of the SBG across ''Point of Sale'' and
''e-Commerce'' transactions crossed Rs.22,407 crores in FY 2013-14. We have
introduced some significant offers like the ''3-Swipe Campaign'' during
August- September, 2013 and ''Shop Big and Gain Big'' campaign in
collaboration with SBI Card (subsidiary), in October- November, 2013.
The Bank''s product range includes the following Prepaid Cards to cater
to Various payment needs of its customers:
Foreign Travel Card: The Foreign Travel Card, now a chip based EMV
compliant Card, is available in 8 currencies, US Dollar (USD), Great
Britain Pound (GBP), Euro, Canadian Dollar (CAD), Australian Dollar
(AUD), Japanese Yen (JPY), Saudi Riyal (SAR) and Singapore Dollar
(SGD), providing safety, security and convenience to overseas
travellers. We have also introduced corporate Variants of State Bank
Foreign Travel Card (SBFTC) to cater to the needs of corporate
employees travelling overseas. Sales stood at USD 83.34 million in FY
eZ- pay Card: The eZ- Pay Cards are aligned with most of the social
schemes of the State and Central Governments in addition to salary
payments by corporate entities, thus benefiting millions of households.
Sales stood at Rs.829.19 crores in FY 2013-14.
Gift Card: Gift Cards are a preferred option for consumers to gift the
''Freedom of Choice'' to their loved ones. Customers can purchase Gift
Cards online. Sales stood at Rs.128.73 crores in FY 2013-14.
State Bank achiever Card: Rolled out in November 2013. This is a
re-loadable Corporate incentive Card with a validity of 10-years for
disbursement of incentives/ awards.
Smart payout Card: We launched the Smart Payout Card, a reload able
Card, on 27th April, 2013, for blue collar workers and contract
labourers, among others. This Card can also be issued as an ''Add-on
Card'' to our savings Bank account holders. Sales stood at Rs.15.19 crores
in FY 2013-14.
Merchant Acquiring Business (MAB)
The MAB division aims to activate more than 150 million SBG Debit Cards
on POS terminals, increase visibility and create a comprehensive
electronic infrastructure in the country. We are already the largest
player among Public Sector Banks with around 1,35,853 terminals (as on
31st March, 2014) in the market. We are also the 4th largest Acquirer
in India and have entered into corporate tie-ups with many prominent
players, including top educational institutions and hospitals as we
continue to tap the huge potential available in the market. During the
year the Bank has also launched Mobile POS on a pilot basis and will be
rolling it out on a pan-India basis in the next few months.
Mobile Banking Service
The Bank is the market leader with a market share of 57% in transaction
volume and 17% share in terms of value.
During 2013-14, financial transactions worth Rs.3,763 crores were
executed through the Mobile Banking Service, resulting in an income of
Green Channel Counter (GCC)
The Bank has launched the GCC facility in all retail branches (14,981
branches) to enhance convenience to the customers and save on cost and
time per transaction. More than 360,000 transactions are taking place
on a daily basis through these counters.
Self Service kiosk (SSK)
The Bank has 1,352 SSKs as on 31st March, 2014 enabling more than
55,000 transactions daily.
Green Remit Card (GRC)
The Bank introduced GRC, a remittance card, on 2nd January, 2012 for
facilitating large number of non-home cash deposit transactions at our
branches. A cardholder can swipe the card at GCC or at Cash Deposit
Machines (CDM) and remit money to the beneficiary whose account number
is mapped to the card. Once the transaction is completed, both the
remitter and beneficiary get a confirmation through SMS. The Bank has
issued more than 48,00,000 cards resulting into 1,81,00,000
transactions as on 31st March, 2014.
State Bank Aggregator Service (SBIePay)
The Bank has launched ''SBIePay'', a payment aggregator service, which
facilitates e-Commerce/ m-Commerce transactions among merchants,
customers and Various financial institutions for all kinds of e-Commerce
payments. The Bank''s Chairman, Smt Arundhati Bhattacharya, launched
the service at Corporate Centre, Mumbai on 13th March, 2014. The new
service will go a long way in providing our customers with online
i.3 NPA Management
A depressed macro-economic environment in FY 2013-14 led to increased
loan defaults with deterioration in asset quality of Indian banks.
Slippages have occurred across all sectors and today, resolution of
NPAs is the single largest challenge before all banks.
Stressed Assets Management Group (SAMG) is a dedicated and specialized
vertical, headed by a Deputy Managing Director, created specially to
efficiently resolve high value NPAs. Today SAMG has 16 SAMG branches and
43 SARBs across the country. Currently, SAMG covers 23.79% and 54.33%
of the Bank''s Non Performing Assets (NPAs) and Advances under
Collection Account (AUCA) respectively. The recovery efforts of SAMG
are supplemented by efforts put in by front-line operating staff at our
15,869 branches across the country. Besides, Account Tracking &
Monitoring (AT & M) Centres have been operationalised in all Circles to
contact retail Special Mention Accounts (SMAs) and NPAs. Business
Correspondents, Business Facilitators and Self Help Groups are also
involved in recovery of Agricultural NPAs.
The sale of final assets to ARCs has resulted in reduction of NPAs by Rs.
3,590 crores and AUCA reversal of Rs.1,092 crores. different strategies
were adopted for achieving optimum sales level and price.
SAMG resorts to Various strategies to resolve stressed assets. Some of
these are enumerated below:
Restructuring of both Standard assets and NPAs, either though the
corporate debt restructuring mechanism or through a bilateral
Recovery through auction of assets using the Securitisation and
Reconstruction of Financial Assets and Enforcement of Security Interest
Filing suits in Debt Recovery Tribunals and other Courts for recovery
Identifying and engaging with strategic investors for takeover of
Sale of NPAs to Asset Reconstruction Companies.
Entering into One-Time Settlements with borrowers.
Using Resolution Agents to take possession of properties mortgaged to
the Bank and arranging for their auction. Using the e-auction platform
to reach out to as many prospective bidders as possible. Considering
Debt Asset swaps in some cases. Engaging investigation agencies to
trace out unencumbered promoter and guarantor assets and obtaining
attachment before judgements over these properties.
Identifying Companies and promoters as Willful Defaulters and arranging
for display of their names on the websites of Credit Information
Companies such as CIBIL. These names are also reported to the RBI.
Publishing photographs of defaulters in newspapers where warranted.
Persuading large Corporate borrowers under stress to sell non-core
assets, dilute their shareholding and bring in strategic investors thus
reducing debt and improving viability. Asset Quality Improvement
measures for P-Segment The Special One Time Settlement (OTS) scheme for
the National lok Adalat/Bank Adalat to settle NPA accounts has been
SMSES are being sent to borrowers: (i) Seven days before EMI due date,
(ii) One day before EMI due date, and (iii) After EMI due date.
The scope of Bank''s Contact Centre at Baroda and tele calling centre at
SBI Cards/GE, Gurgaon has been expanded to encompass soft recovery
follow-ups of all P-Segment loans.
A tie-up has been made with Shriram Auto mall India limited (SAMIL) to
assist operating functionaries in seizure and auction of vehicles.
Use of loan Origination Software (LOS) has been made mandatory for Auto
loans and Personal loans (except loan against Time Deposits, P-Segment
Gold loans and Education loans) and its integration with the Risk
Scoring Model (RSM) and CIBIL check to take care of many process
Asset Quality Improvement measures for Agriculture
As far as agriculture loans were concerned, Various One-Time Settlement
Scheme (OTS) schemes like ''OTS Scheme for Tractor loan'', ''OTS Scheme
for ATl'' were rolled out for quick resolution of hardcore NPAs in Agri
term loans. These schemes resulted in a recovery of Rs.378 crores during
Campaigns launched: ''KCC (Zero NPA) Campaign'' was launched to drive
renewal of overdue KCCs with the objective of arresting NPAs accretion
and reduction. Over 16.57 lakhs KCCs in the likely stressed category
were renewed. kitna Baki Hai campaign was launched during December 2013
to drive daily monitoring of KCC renewal position through SMS based
reporting to reach KBN (kuchi Baki Nahi).
Green Power represents an innovative scheme to improve loan recovery
culture among farmers by rewarding the villages with solar street
lights under corporate social responsibility.
Asset Quality Improvement measures for Corporate accounts
The asset quality of CAG remained well under control with the gross
NPAs at 0.99% of total advances. About 87% of CAG''s portfolio is
investment grade with 40% carrying the highest rating from the external
Mid corporate segment has been more severely affected by the economic
downturn, leading to deterioration in asset quality. The Non Performing
Assets (NPAs) of MCG have increased from Rs.18,443 crores in March 2013
to Rs.32,715 crores in March 2014. To tackle this issue, the Group has
strengthened the processes of appraisal/sanction, follow-up and
supervision. Every effort is made to improve the asset quality through
regular engagement with promoters of weak/ stressed accounts.
The Bank has formed Various committees headed by Chairman/ Managing
Directors/ Deputy Managing Directors/ Chief General Managers/ General
Managers/ Deputy General Managers to periodically review stressed
assets and suggest resolution strategies.
SAMG has brought in substantial recoveries in high value NPAs and some
decades-old dues during FY 2013-14 due to its specialised attention and
concerted efforts. Despite a harsh environment last year, we achieved a
deceleration in NPA accretion due to SAMG''s relentless efforts along
with the support of SAMBs/ SARBs/ SARCs.
This was particularly evident during Q4 of FY 2013-14 when Gross and
Net NPA percentages were brought down by 78 basis points and 67 basis
points respectively from the peak levels of 5.73% and 3.24% witnessed
during the year. More details are furnished below:
Exhibit 22: NPA Management performance (Rs. in crores)
FY 2011-12 FY 2012-13 FY 2013-14
Gross NPAs at the 39,676 51,189 61,605
end of the year
Gross NPA% 4.44 4.75 4.95
Net NPA% 1.82 2.10 2.57
Fresh Slippages 24,712 31,993 41,516
Cash Recoveries/ 9,618 14,885 17,924
Write Offs 744 5,594 13,176
Recoveries in Written 962 1,066 1,543
The SAMG and other recovery outfits of the Bank are fully geared to meet
the asset quality challenges of FY 2014- 15 when near-term pressure is
expected to continue. We are in the process of establishing an Early
Warning System to identify incipient sickness and stress in loan
accounts so that we can take in advance corrective action, including
timely restructuring in deserving cases. This would prevent slippages
and maintain good asset quality.
ii. 1 information technology
Core Banking Project
CBS environment has been benchmarked to support one billion accounts,
over 250 million transactions in a day and delivering a throughput of
over 17,000 transactions per second. Biometric authentication as a
second-factor authentication has been implemented in branches for all
CBS users. The process for the systematic and proactive risk
identification, assessment, measurement, monitoring and mitigation of
Various risks in the IT vertical has been initiated.
Exhibit 23: Alternate channels Growth (Numbers)
As on ATMs Kiosks cash total
31.03.2013 25,247 1,230 698 27,175
31.03.2014 40,768 1,231 1,516 43,515
State Bank of India, along with its Associate Banks has one of the
largest ATM networks in the world with more than 51,491 ATMs including
kiosks and Cash Deposit Machines as on 31.03.2014. SBI has issued more
than 17.04 crores Cards. The ATM Base 24 Switch has recently been
upgraded to handle close to 50,000 ATMs.
The objective is to strengthen ATM facilities across every nook and
corner of this vast country and enhance customer convenience. During
2013-14, SBI has installed 16,340 ATMs, a record in India''s banking
history for such a massive ATM rollout. The total number of ATMs
(standalone) now stands at 43,515 as on 31.03.2014.
With 26% of market share in India''s ATM population, SBI''s ATM network
transacts 38% of the country''s total ATM transactions. On an average,
over 70.00 lakhs transactions per day are routed through our ATM
network. Our ATM network is one of the busiest in the country with
average hit rate of more than 200 transactions per day per ATM. SBI has
a Debit Card base (standalone) of 13.74 crores.
More than 1000 ATMs have been enabled as Talking ATMs for Visually
Impaired Customers during FY 2013-14, which took the total Talking ATM
strength to 4,000 as on 31st March, 2014.
Cash Deposit Machines (CDM): SBI is aggressive in rolling out CDMs for
cash deposit by customers at these machines by using their
ATM-cum-Debit card. As on 31.03.2014, the number of CDMs installed was
1,516. These CDMs are available to the customer 24 x 7 for their
INB & e-Commerce
Internet Banking service is available through the Bank''s website
https://www.onlinesbi.com. The Bank''s internet banking solution is a
comprehensive product for both retail and corporate users.
The Bank''s Net Banking Platform ''onlinesbi.com'' provides secured and
hassle-free on-line banking services to its retail and corporate
customers, including PSUs and Government Agencies:
This cost-effective channel has enabled 63.77 crores transactions
during FY 2013-14, achieving 52% growth over the previous year.
Our robust Retail Internet Banking platform has also been optimised for
visually impaired customers.
The Corporate Internet Banking is well suited to Small, Medium and
large Corporates in establishing traction with Government Treasury and
Accounts Departments too.
During FY 2013-14, the Bank has established itself as a major player in
the e-Commerce space:
Through over 15,000 direct merchant tie-ups, through State Bank Collect
or through private aggregators, the Bank has facilitated more than 42
crores e-Commerce transactions during the year.
On-line collection of Taxes/ Fee/ EMD towards e-Trading/ e-Auction is
being facilitated through the new Multi- Option Payment System (MOPS)
interfaced with portals of PSUs, Corporations and Govt. Departments.
SBI was awarded seven out of nine awards in the IBA Banking technology
The Best Technology Bank of the Year
Best Internet Bank
Best use of Mobile Technology
Best use of Technology in Financial Inclusion
Best Customer Management Initiative
Best use of Technology in Training and e-learning
Best use of Technology in Business Intelligence
IT - Foreign Offices
153 Foreign Offices of the Bank in 26 countries use the Finale Core
Banking solution along with a host of add on/surround applications to
meet all the regulatory requirements besides providing high class
Enterprise Data Warehouse
''Customer One View'' is a solution for a 360 degree view of holdings
with the Bank, including that of our Associates and Subsidiaries,
namely, SBI life, SBI Cards, SBI Mutual Funds made available to the
Relationship Managers to enable them to offer better customer service.
Also, a large number of predictive and analytic reports are regularly
being generated by the DWH to aid business planning.
The Bank has implemented a secured, robust WAN architecture network
connecting branches/offices and ATMs of State Bank Group through leased
lines and VSAT''s. The Bank is in the process of migrating to Multi
Protocol label Switching (MPlS) architecture for improved network
Corporate Web and Mail Services
Internal Social Media SBI Aspirations social software is designed to
meet the needs of business and empowers bank''s employees to be more
innovative and productive, where creative ideas can be exchanged that
can foster increase in business growth. Bank has made available its
presence on External Social Media sites like Facebook, Twitter and
YouTube for listening to and engaging with generation Y customers and
An independent Risk Governance Structure, in line with international
best practices, has been put in place, in the context of separation of
duties and ensuring independence of Risk Measurement, Monitoring and
Control functions. This framework visualises empowerment of Business
Units at the operating level, with technology being the key driver,
enabling identification and management of risk at the place of
The Bank has in place a Country Risk Management Policy in tune with RBI
guidelines. The policy outlines a robust risk management model with
prescriptions for Country, Bank, Product and Counterparty exposure
limits. Both Country- wise and Bank-wise exposure limits are monitored
and reviewed on a regular basis. The exposure ceilings and
classifications are moderated in line with the dynamics of their risk
profiles. Corrective steps are initiated periodically to safeguard the
Credit Risk is defined as the possibility of Losses associated with the
diminution in the credit quality of borrowers or counterparties from
outright default or from reduction in portfolio value. Credit Risk
emanates from a bank''s dealings with an individual, non-corporate,
corporate, Bank, financial institution or sovereign.
The Bank has strong credit appraisal and risk assessment practices in
place for identification, measurement, monitoring and control of the
credit risk exposures. The Bank uses Various internal Credit Risk
Assessment Models for assessing credit risk under different exposure
segments. Internal ratings of the Bank are subject to comprehensive
rating validation framework.
Credit Risk Management Department (CRMD) studies 37 industries,
including sectors, such as Telecom, Power, Coal, Aviation, NBFC,
Textile, Iron and Steel and disseminates the reports to operating staff
for informed decision-making. Specific studies on Companies/ Groups as
required are also conducted.
RBI has allowed the Bank to participate in the parallel run process for
Foundation Internal Ratings Based (FIRB) under the Advanced Approaches
for Credit Risk.
The CRM project for migration to FIRB is being implemented by the Bank
with guidance from an external Consultant appointed for the purpose.
The governance structure has been made more robust for effective
implementation of the FIRB and new policies related to the same have
been approved by the Risk Management Committee of the Board (RMCB).
Models for estimation of Probability of Default (PD), loss Given
Default (LGD) and Exposure at Default (EAD) have been developed.
Bank regularly conducts Stress Test on its Credit portfolio and Stress
Scenarios are regularly updated in line with RBI guidelines, Industry
best practices and changes in macro economic VARiables.
Credit Risk Management Committee (CRMC) and Risk Management Committee
of Board (RMCB) meetings were held regularly.
Market Risk is the possibility of loss a Bank may suffer on account of
changes in values of its trading portfolio, due to change in market
Variables, such as exchange rates, interest rates and equity price,
The Bank''s market risk management consists of identification and
measurement of risks, control measures, monitoring and reporting
The Bank has Board approved policies pertaining to the said risks for
Trading in Foreign Exchange, Derivatives, Interest Rate Securities,
Equities and Mutual Fund. Market risks are controlled through Various
risk limits, such as Net Overnight Open Position, Modified Duration,
Stop loss, Management Action Trigger, Cut loss Trigger, Concentration
and Exposure limits, among others as mentioned in the respective
Currently, market risk capital is computed under the Standardised
Measurement Method (SMM). The Bank has submitted its letter of Intent
to the Reserve Bank of India to migrate to the Internal Models Approach
(IMA) under the Advanced Approaches for market risk.
IMA is a Value at Risk (VAR) based tool for monitoring of the Bank''s
trading portfolio. The VAR methodology is supplemented by conducting
quarterly stress tests of the trading portfolio.
The MRM project for migration to IMA is being implemented by the Bank
with guidance from an external Consultant appointed for the purpose.
SBI''s Market Risk is monitored and reviewed by the Market Risk
Management Committee (MRMC) and the Risk Management Committee of the
Board (RMCB) which meet regularly.
Operational Risk is the risk of loss resulting from inadequate or
failed internal processes, people and systems or from external events.
The main objectives of the Bank''s Operational Risk Management are to
continuously review systems and control mechanisms, create awareness of
operational risk throughout the Bank, assign risk ownership, align risk
management activities with business strategy and ensure compliance with
regulatory requirements, which are the key elements of the Bank''s
Operational Risk Management Policy.
Important policies, manuals and framework documents in line with RBI
guidelines on Operational Risk Management Framework (ORMF) for
migration to Advanced Measurement Approach (AMA) are in place.
The Bank has already submitted its letter of Intent (LOI) to migrate to
the Advanced Measurement Approach (AMA) under the Advanced Approaches
for Operational risk.
The ORM project for migration to AMA is being implemented by the Bank
with guidance from external Consultant appointed for the purpose.
The Bank-level Operational Risk Management Committee (ORMC) reviews the
operational risk profile of the Bank periodically and recommends
suitable controls/ mitigations for managing operational risk in the
Bank. Risk Management Committees at Operational unit and Business unit
level are in place.
Group Risk Management aims to put in place standardised risk management
processes in Group entities. Group Risk Management Committee, a
committee of executives, has been constituted under the chairmanship of
the DMD and CCRO to oversee the management of risk functions across the
A quarterly analysis of risk-based parameters for Credit Risk, Market
Risk, Operational Risk and liquidity Risk, among others, is presented
to Group Risk Management Committee/Risk Management Committee of the
Exposure limits for large Borrower Exposure and Capital Market Exposure
as per RBI have been adopted for the Group. In addition, limits for
Unsecured Exposures, Real Estate and Intra-Group Exposures have been
set by the Bank.
A voluntary annual disclosure on Group Risk is part of the Bank''s
The Group Internal Capital Adequacy Assessment Process (Group ICAAP)
document includes an assessment of identified risks by Group entities,
internal controls and mitigation measures, and capital assessment,
under normal and stressed conditions. All Group entities, including
Non-banking entities, carry out the ICAAP exercise and a Group ICAAP
Policy is in place to ensure uniformity.
To overhaul the Group Risk Management and adopt global best practices,
the Bank has embarked upon a Group Risk Management Project recently.
Enterprise Risk Management aims to put in place a comprehensive
framework to manage various risks. It encompasses Global best practices
like Risk Appetite, Risk Aggregation and Risk-based Performance
For assessment of Pillar I risks and Pillar 2 risks, such as liquidity
Risk, Interest Rate Risk, Credit Concentration Risk, as well as
adequacy of Capital and overall Risk Management practices under normal
and stressed conditions, the Bank has comprehensive Internal Capital
Adequacy Assessment Process (ICAAP) in place.
As part of the Bank''s Risk Management Project to transform its role
into a Strategic function, aligned with Business Objectives, Bank has
initiated the Enterprise Risk Management (ERM) module.
Information Security risk
Information Security risk seeks to establish stringent information
security structure to prevent data loss and threats.
The Bank has implemented a robust IT policy and Information System
Security policy, which are in line with international best practices.
These policies are reviewed periodically and suitably strengthened to
address emerging threats.
Regular security drills and employee awareness programmes are conducted
to ensure security and increase awareness. Business Continuity
Management Systems (BCMS) have been implemented at the Bank''s Global IT
Centre, Belapur. SBI is a forerunner in setting up of an in-house
Security Operations Centre (SOC) for 24 x 7 x 365 monitoring of various
attacks and threats on its IT infrastructure, which was made
Disaster Recovery Drills are conducted regularly as part of the
implementation of the Business Continuity Management System (BCMS). The
Business Continuity Exercise for the IT Systems during the financial
year was held on 19th January, 2014. Critical IT Systems of the Bank
are compliant with the International BCMS Standard ISO 22301:2012.
The Bank has in-built internal control systems with well-defined
responsibilities at each level. It conducts internal audit through its
Inspection & Management Audit Department. Audit Committee of the Board
(ACB) exercises supervision and control over the functioning of the I &
MA Department. The inspection system plays an important and critical
role in identification, control and management of risks through the
internal audit function, which is regarded as one of the most important
components of Corporate Governance. The Bank carries out mainly two
streams of audits Risk Focused Internal Audit (RFIA) and Management
Audit, covering different facets of Internal Audit requirement. The
Bank''s accounting units are subjected to RFIA. The Bank''s Management
Audit covers administrative offices and examines policies and
procedures, besides quality of execution thereof.
Besides, the department conducts Credit Audit, Information Systems
Audit (Centralised IT establishments & Branches), Home Office Audit
(audit of foreign offices) and Expenditure Audit (at administrative
offices) and oversee policy and implementation of Concurrent Audit
(domestic and foreign offices) and Circle Audit. To verify the level of
rectification of irregularities by branches, audit of compliance at
select branches is also undertaken. During the period 01.04.2013 to
31.03.2014, 9,230 domestic branches/BPR entities were audited under the
Risk Focused Internal Audit.
Risk Focused Internal Audit
I&MA Dept undertakes a critical review of the entire operations of
audited units through RFIA an adjunct to Risk Based Supervision as per
RBI directives. The domestic branches have been broadly segregated into
three groups (Group I, II & III) on the basis of business profile and
risk exposures. While audit of Group I branches is administrated by the
Central Audit Unit (CAU), audit of branches in Group II and III
category and Business Process Re-engineering (BPR) entities are
conducted by 13 Zonal Inspection Offices, each of which is headed by a
With the introduction of RFIA, Management Audit has been reoriented to
focus on the effectiveness of risk management in the processes and the
procedures followed in the Bank. Management Audit encompasses Corporate
Centre establishments / Circle local Head Offices / Apex Training
Institutions, Associate Banks and Regional Rural Banks (RRB) sponsored
by the Bank. To enhance the effectiveness of Management Audit,
periodicity has been reduced from the existing once in three years to
Credit Audit aims at achieving continuous improvement in the quality of
Commercial Credit portfolio of the Bank through critically examining
individual large commercial loans with exposures of Rs.10 crores and
above annually. The Credit Audit System also provides feedback to the
business unit by way of warning signals about the quality of advance
portfolio in the unit and suggests remedial measures. Credit Audit also
carries out a review (loan Review Mechanism) of all the pre-sanction
and sanction process of all individual advances above Rs.5 crores within
6 months of sanction / enhancement / renewal. During the period from
01.04.2013 to 31.03.2014, 8,623 accounts were subjected to on-site
Information System Audit
All Branches are being subjected to Information System (IS) Audit to
assess the IT related risks as part of RFIA of the branch. IS Audit of
centralised IT establishments is carried out by a team of qualified
officials. During the period from 01.04.2013 to 31.03.2014, IS audits of
49 centralised IT establishments were completed.
Foreign Offices Audit
During the period from 01.04.2013 to 31.03.2014, Home Office Audit was
carried out at five branches, Management Audit at 05 Representative
offices / Country Head Offices and 1 Subsidiaries / Joint Ventures.
Concurrent Audit System
Concurrent Audit System is essentially a control process, integral to
the establishment of sound internal accounting functions, effective
controls and overseeing of operations on a continuous basis. Concurrent
Audit System is reviewed on an on-going basis in accordance with RBI
directives, so as to cover the Bank''s Advances and other risk exposures
as prescribed by the regulatory authority. I&MA department prescribes
the processes, guidelines and formats for the conduct of concurrent
audit at branches and BPR entities. During the year, Concurrent Audit
System has been revamped, along with the introduction of a web- based
Circle Audit, which is a delegated audit, covers low-risk areas, and is
conducted between two RFIAs. This enables auditee unit to be better
prepared for the RFIA. During the period from 01.04.2013 to 31.03.2014,
9,069 units were audited by the Circle Audit Department.
ii. 3 Vigilance
The essential function of the Bank''s Vigilance Administration is not
only to check against non-compliance of rules and regulations by
initiating suitable disciplinary action against serious transgressions,
but also to devise and implement various preventive measures by
reviewing the systems and processes to ensure higher effectiveness and
The concept of vigilance as an investigative process and an exercise
for punitive action has over time evolved to that of ''Vigilance for
Corporate Growth'', the emphasis getting shifted from punitive vigilance
to ''Preventive and Proactive Vigilance'' through an active participation
of all concerned. Some of the Bank''s important preventive measures
comprise the following:
Preventive Vigilance Committee (PVC) Meetings are being held at the
branches and the BPR outfits at quarterly intervals.
Under Whistle Blower Scheme, our staff members are expected to advise
appropriate authorities about irregular and unethical practices, if
any, being indulged in by colleagues and even seniors.
Suo moto investigations are conducted at fraud/ complaint prone
branches. The primary aim of such investigations is to find out
non-adherence to the systems and procedures by the branch, which may
lead to perpetration of fraud in future. Suitable corrective measures
are initiated to stop irregular practices, if any, brought out in the
As on 31.03.2014, 1,024 cases of officers were taken up for examination
under the vigilance category, compared to 1,160 cases during the
previous financial year.
ii. 4 Human resources
The Bank has become an employer of choice in India and one of the most
employee-friendly organisations today. HR audits and mammoth HR
exercises now form critical strategies in change management to
facilitate employee communication and develop a leadership pool by
careful succession planning.
Hr awards and accolades
Golden peacock award for HR excellence.
World HRD Congress award for organisation with innovative HR practices.
World HRD Congress award for innovation in Recruitment.
Talent management is considered as an equally important facet of an
organisation''s effectiveness. Accordingly, our Bank has been making a
constant endeavour to improve the functioning of HR as a strategic
The Bank has a total permanent staff strength of 2,22,033 on 31st
Out of this, 79,755 (35.92%) are officers, 1,01,648 (45.78%) are
clerical staff and the remaining 40,630 (18.30%) are sub-staff.
exhibit 25: Movement of staff
officers Assistants subordinate total
As on 31.3.2013 80,796 1,09,686 37,814 2,28,296
less: 3,861 8,388 2,035 14,284
Add /less (-): 1,426 ( ) 1,426 (-) - -
Addition 1,394 1,776 4,851 8,021
As on 31.03.2014 79,755 1,01,648 40,630 2,22,033
Women Employees in the Total Workforce:
At present, the strength of women employees in the total workforce of
the Bank is 45,132 which constitutes more than 20% of the total staff
strength. The composition of women employees in different cadre is as
Improvement in Employee Productivity
The large-scale recruitment of Gen-next employees in the Officers as
well as in the Assistant grade over the last 3/4 years has not only
brought about a far reaching attitudinal change among staff in their
customer interface and services across the branches, it has also become
a catalyst in enhancing/improving the productivity and efficiency of the
employees, there by resulting in increasing growth in business and
profitability for the Bank. The business per employee (BPE) has
increased during the period from 2010- 11 to 2013-14 as per data
furnished below. In this connection, the profit per employee (PPE) has
also increased from Rs.3.85 lakhs in 2010-11 to Rs.6.45 lakhs in 2012-13.
However, the PPE has declined to Rs.4.85 lakhs in 2013-14 primarily due
to higher provisioning, increase in overheads and staff cost during the
year. Further, various cost control measures / practices have been
reiterated for adoption/compliance at all levels to improve the Bank''s
Regular consultative meetings were held with the Associations/Unions as
part of the constructive dialogue for understanding and addressing
grievances of various categories of employees. These consultations are
done both at Corporate Centre as also at Circles. various issues raised
by the Federations were examined on merits and necessary action was
taken for its resolution.
Status of Women at workplace:
The existing policy of the Bank providing for protection against Sexual
Harassment of women at workplace and for the prevention and redressal
of complaints of sexual harassment and for matters connected therewith
or incidental thereto was revised / upgraded to incorporate the
requirements as per the Act passed in Parliament. The Bank has a zero
tolerance towards sexual harassment at workplaces and has put in place
appropriate mechanism to ensure that women work with dignity and
exhibit 29: complaints of sexual Harassment of women fled & disposed
off during FY 2013-14
Total No. of cases fled Total No. cases disposed off
The Bank has improved staff perquisites like provision of sabbatical
leave for women and single men (with children and/or aged parents)
The Bank has made a comprehensive review of promotion policies to take
care of contemporary as well as future requirements. This will enable
us to meet our succession planning needs by ensuring adequate exposure
of officials to various aspects of Banking. These initiatives have
motivated employees and improved their productivity, besides resulting
in a healthy employer-employee relationship.
Exhibit 30: reservation in employment
category total SC ST PWD
Officers 79,755 13,890 5,645 573
(17.41%) (7.07%) (0.71%)
Assistants 1,01,648 17,286 8,755 1,801
(17.00%) (8.61%) (1.77%)
Sub-staff 40,630 11,568 2,843 236
(28.47%) (7.00%) (0.58%)
Total 2,22,033 42,744 17,243 2,610
(19.25%) (7.76%) (1.17%)
The Bank provides reservation to Scheduled Castes, Scheduled Tribes &
Persons with Disabilities (PWDs) as per Government of India (GOI)
directives. liaison Officers have been designated at all local Head
Offices of the Bank and the Corporate Centre at Mumbai in order to deal
with issues relating to reservation policy and effectively redress the
grievances of the SC/ST employees.
ii. 5 strategic training Unit (STU)
Our training system functions under the overall supervision and
guidance of STU and the training apparatus at present consists of 5
Apex training institutes and 47 learning Centres. The sixth ATI, named
the State Bank Institute of Management, is being set up at Rajarhat,
New Town, Kolkata.
Principles that drive learning activities
All employees undergo at least one institutional training during a
Training programmes are aligned with current corporate priorities of
the Business Units.
A culture of self-learning is inculcated in every employee.
Active promotion of online learning includes mandatory role- based
lessons supported by Rewards and Recognitions.
Under its Reward and Recognition Scheme, the Bank also actively
encourages its employees to pursue various study courses offered by
Highlights of achievements
Trained more than 2,34,763 participants during 2013-14 covering 60% of
Officials and 68% of award staff.
Hosted 366 lessons, covering operationally relevant topics, in
Uploaded 219 short duration e-capsules (of 15 minutes each) for faster
dissemination of knowledge among employees, especially frontline staff.
Mobile nuggets (short study materials on mobile handsets) made
available on pilot basis.
Arranged video lectures on industry specific inputs for senior
Training for staff by hospitality industry.
Trained all employees about gender sensitivity at workplace.
ii. 6 official language
Staff members are being continuously trained in Hindi language to work
in Hindi on computers for the purpose of Official language
The Bank has made the content of corporate and internet sites available
bilingually. various staff manuals have been provided in Hindi on HRMS
portal of the Bank. For the convenience of the customers, the material
on SME portal of the Bank has been provided in Hindi. Providing
information on different products and services in Hindi through lCDs
installed in the branches has increased their popularity. The ATM hits
in Hindi is rapidly increasing too.
The In-House Hindi magazine ''PRAYAS'' of our Bank has been accredited
with a grand achievement this year, on the occasion of Hindi Day, on
14th September, 2013.
PRAYAS'' was awarded as the best in-house magazine in ''B'' region. The
Bank was felicitated with the First prize at Vigyan Bhavan, new Delhi
by the Hon. president of India. ''prayas'' also bagged Second prize in
RBI''s In- House Hindi magazine competition and the Bank was conferred
the Second prize in the ''Indian Language publication category''
competition by the association of Business Communicators of India
ii. 7. corporate social responsibility (CSR)
Our CSR activity touches the lives of millions of poor and needy across
the length and breadth of the country. The Bank has a comprehensive
Corporate Social Responsibility (CSR) Policy, approved by the Executive
Committee of the Central Board in August 2011 and earmarks 1% of the
previous year''s net profit as CSR spend budget for the year.
Focus areas of our CSR activities are: Supporting education.
Assistance to poor & underprivileged.
Entrepreneur development programme.
Assistance during natural calamities like foods/droughts etc.
Supporting Education :
To support school education and provide relief from heat to millions of
school children specially the under privileged children, Bank has
provided 1,40,000 electric fans to 14,000 schools across the country
Infrastructure support by way of furniture, computers and other
educational accessories and donation of large number of school
buses/vans to the physically/ visually challenged children and children
belonging to economically weaker section of society.
Supporting Healthcare :
Bank donated 210 medical vans/ambulances with an expenditure of Rs.18.38
crores during the year.
Medical equipment have been provided at 90 centres worth Rs.8.87 crores.
Bank installed more than 30,000 water purifiers in schools ensuring
clean & safe drinking water for millions of school going children.
Assistance during natural calamities:
During the current fiscal the Bank has donated Rs.6.00 crores to the Chief
Minister''s Relief Fund of three states.
Bank has adopted energy efficient measures.
SBI is the largest deployed of solar ATMs.
Bank has installed windmills in three states for its own energy needs.
Paperless Banking is promoted and implemented across the country.
Gives project loans at concessionary rate of interest to encourage
reduction of green house gases by adopting efficient manufacturing
Research & Development Fund
The Bank makes an annual contribution of GBP 100,000 towards a Chair
set up by the Bank jointly with RBI at the Asia Research Centre at
London School of Economics. Our R&D Fund donations amounted to Rs.1.03
crores during 2013-14.
SBI Children''s Welfare Fund
The Bank constituted SBI Children''s Welfare Fund as a Trust in 1983
which extends grants to institutions engaged in the welfare of
underprivileged children like orphans, destitute, mentally/physically
challenged, etc. The Corpus of the Fund is made up of contributions by
staff members and matching contribution provided by the Bank. During
the FY 2013-14, 12 projects were assisted with Rs.34.70 lakhs.
CSR awards and accolades
The year FY 2013-14 witnessed the highest number of awards for the Bank
in CSR achievements.
Conferred Asia''s Best CSR practice award, 2013 by CMO Asia in
Won an award for ''Best CSR practices'' at Asian BFSI awards 2013 in
other prominent awards conferred
IPE BFSI award 2013 for Best CSR practices.
India''s Most ethical Companies awards 2013 for ethical Company in
Asia Green Future Leadership award 2013 for ''Best Green Service
My FM Stars of the Industry award for excellence in Banking (PSU) 2013.
News Ink Legend PSU Shining award 2013.
ABP news BFSI 2013 for Best CSR practices award.
ABP news Global CSR excellence & Leadership award for organisations
with best CSR practices.
Blue Dart Global CSR excellence & Leadership award for Best use of
CSR practices in Banking and Financial Sector.
Global CSR excellence & Leadership award 2013.
III. ASSOCIATES AND SUBSIDIARIES
The State Bank Group, with a network of 21,977 branches (including
6,108 branches of five Associate Banks) dominates India''s banking
industry. In addition to banking, the Group, through its various
subsidiaries, provides a whole range of financial services, including
life Insurance, Merchant Banking, Mutual Funds, Credit Card, Factoring,
Security trading, Pension Fund Management, Custodial Services, General
Insurance (Non life Insurance) and Primary Dealership in the Money
The five Associate Banks of SBI had a market share of 5.48% in deposits
and 5.88% in advances as on last Friday of March 2014.
exhibit 31: performance Highlights of
Associate Banks (overall) (Rs. in crores)
As on As on Change
31.03.2014 31.03.2013 (%)
Total Assets 5,18,255 5,04,556 2.72
Aggregate Deposits 4,33,091 4,17,657 3.70
Total Advances 3,63,402 3,40,321 6.78
Operating Profit 8,368 8,803 -4.94
Net Profit 2,777 3,678 -24.50
Credit Deposit Ratio 83.91% 81.48% 243bps
Capital Adequacy 11.20% 11.85% -65bps
Gross NPA 18,211 11,589 57.14
Net NPA 10,719 6,143 74.48
Return on equity 9.77% 14.33% -456bps
rankings - SBI Capital Markets Limited (SBICAP)
Ranked no. 1 Global Mandated Lead arranger in project Finance Loans by
Ranked no. 1 Global project Finance Book runner by Thomson- Reuters.
Ranked no. 1 in the number of issues handled for the public issue of
debt in FY 2013 by prime.
Awards bestowed on SBILIFE in FY 2013-14
Best Life Insurance provider 2013 (Runner Up) by outlook Money.
Most Trusted private Life Insurance Brand 2013 by The economic Times,
Brand equity and Nielsen Survey.
Global performance excellence award 2013 by Asia pacific Quality
organisation Digital Inclusion Skoch awards 2013 enabling partners to
collect premium through electronic Fund Transfer Cash & Direct Debit.
Information of Subsidiaries and Joint Ventures Domestic Banking
exhibit 32: The performance highlights of the Associate Banks as on
31.03.2014 are as under:
(Rs. in crores)
s. Name of the SBI share of total Agg. total op.
No Bank ownership Deposits
Assets Advances profit
1 State Bank of 676.12 75.07 90,877 72,953 65,333 1,695
2 State Bank of 367.55 100.00 1,44,012 1,20,859 98,885 2,691
3 State Bank of 628.63 90.00 73,976 61,087 50,891 1,164
4 State Bank of 907.10* 100.00 1,04,105 89,485 77,811 1,448
5 State Bank of 505.85* 78.90* 1,05,285 88,707 70,482 1,370
Name of the Net CD CAR Gross Net return
profit ratio % NpAs% NPA equity
State Bank of 732 89.56 11.55 4.18 2.76 12.85
Bikaner & Jaipur
State Bank of 1,019 81.82 12.00 5.89 3.12 9.36
State Bank of 274 83.31 11.08 5.54 3.29 5.57
State Bank of 448 86.95 10.38 4.83 3.17 4.95
State Bank of 304 79.46 10.79 4.35 2.78 8.82
Non Banking Subsidiaries (Rs.in crores)
s. Name of the subsidiary
(state % of Net profit
interest) / ownership for the
1 SBI Capital Markets ltd.
(Consolidated) 58.03 100 262.63
2 SBI DFHI ltd. 139.15 63.78 60.70
3 SBI Payment Services
Pvt. ltd. 2.00 100 0.33
4 SBI Mutual Fund Trustee
Company Pvt ltd. 0.10 100 1.65
5 SBI Global Factors ltd. 137.79 86.18 -56.7
6 SBI Pension Funds Pvt. ltd. 18.00 60 2.59
Joint Ventures (Rs. in crores)
s. Name of the subsidiary
(state % of Net profit
interest) / owner
ship for the
1 SBI Funds Management Pvt. ltd. 31.50 63 155.77
2 SBI Funds Management
(International) Pvt. ltd.(USD) USD 50000 63 (0.46)
3 SBI Cards & Payment Services
Pvt. ltd. 471.00 60 293.10
4 SBI life Insurance Company ltd. 740.00 74 740.10
5 SBI-SG Global Securities
Services Pvt. ltd. 52.00 65 0.21
6 SBI General Insurance
Company ltd. 129.50 74 (98.39)
7 C-Edge Technologies ltd. 4.9 49 163.8
8 GE Capital Business Process
Mgt. Services Pvt. ltd. 10.80 40 24.10
9 Macquarie SBI Infrastructure
Mgt. Pte. ltd. 2.25 45 USD 68,09,865
10 Macquarie SBI Infrastructure
Trustee ltd. - # LOSS USD42,884
11 SBI Macquarie Infrastructure
Mgt. Pvt. ltd. 18.57 45 7.84
12 SBI Macquarie Infrastructure
Trustee Pvt. ltd. 0.025 45 0.02
13 Oman India Joint Investment
Fund-Mgt. Co Pvt. ltd. 2.30 50 2.72
14 Oman India Joint Investment
Fund-Trustee Co Pvt. ltd. 0.01 50 0.00
# 100% Subsidiary of Macquarie SBI Infrastructure Mgt. Pte ltd
The Board of Directors hereby states:
i. that in the preparation of the annual accounts, the applicable
accounting standards have been followed along with proper explanation
relating to material departures;
ii. that they have selected such accounting policies and applied them
consistently and made judgments and estimates as are reasonable and
prudent, so as to give a true and fair view of the state of affairs of
the Bank as on the 31st March, 2014, and of the profit and loss of the
Bank for the year ended on that date;
iii. that they have taken proper and sufficient care for the maintenance
of adequate accounting records in accordance with the provisions of the
Banking Regulation Act, 1949 and State Bank of India Act, 1955 for
safeguarding the assets of the Bank and preventing and detecting frauds
and other irregularities; and
iv. that they have prepared the annual accounts on a going concern
During the year, Sarvashri Diwakar Gupta, Managing Director and Shri
Pratip Chaudhuri, Chairman, retired on attaining superannuation on 31st
July & 30th September 2013, respectively.
Shri Tribhuwan Nath Chaturvedi was nominated as Director under section
19(d) by Government of India w.e.f. 29th August, 2013. Smt. Arundhati
Bhattacharya was appointed as Managing Director under section 19(b)
w.e.f. 2nd August, 2013 and thereafter, Chairman under section 19(a)
w.e.f. 7th October 2013. Shri P. Pradeep kumar was appointed as
Managing Director under section 19 (b) w.e.f. 27.12.2013 on the Board.
The Directors place on record their appreciation of the contributions
made by the respective outgoing Directors, namely, Shri Diwakar Gupta
and Shri Pratip Chaudhuri to the deliberations of the Board. The
Directors welcome the new Directors Shri Tribhuwan Nath Chaturvedi,
Smt. Arundhati Bhattacharya and Shri P. Pradeep kumar on the Board.
The Directors also express their gratitude for the guidance and
co-operation received from the Government of India, RBI, SEBI, IRDA and
other government and regulatory agencies.
The Directors also thank all the valued clients, shareholders, banks
and financial institutions, stock exchanges, rating agencies and other
stakeholders for their patronage and support, and take this opportunity
to express their appreciation of the dedicated and committed team of
employees of the Bank.
For and on behalf of the
Central Board of Directors
Date : 23rd May, 2014 Chairman