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State Bank of India Directors Report, SBI Reports by Directors
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Download Annual Report PDF Format 2014 | 2013 | 2012 | 2011
Directors Report Year End : Mar '14    « Mar 13
FINANCIAL PERFORMANCE
 
 profit
 
 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
 3.31%.
 
 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
 13.95%.
 
 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
 2013-14.
 
 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
 2012-13.
 
 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
 
 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.
 
 operating expenses
 
 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.
 
 Assets
 
 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.
 
 liabilities
 
 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
 
 customer service
 
 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
 aspirations.
 
 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
 
 Compensation Policy
 
 Cheque Collection Policy
 
 Policy on Depositors'' Rights
 
 Policy on Security Repossession/Code of Conduct for Recovery Agents
 
 Policy on Multi-city Cheque
 
 contact centre
 
 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
 re-generation request.
 
 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
 Mobi-cash.
 
 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
 branch.
 
 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 contactcentre@sbi.co.in, ibanking@ sbi.co.in,
 customercare.homeloans@sbi.co.in, feedback.  mobicash@sbi.co.in
 
 Customer Day
 
 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
                        Urban
 
 31.03.2013  5,661     4,173       2,631      2,351       14,816 
 
 Branches      397       230         264        177        1,068 
 added 
 during
 FY 2013-14
 
 Branches        2         4           5          4           15
 merged/
 closed
 
 31.03.2014  6,056      4,399      2,890      2,524       15,869*
     
 * Excluding 24 BPR/ other outfits (RACPCs, CPCs, etc.) exhibit 2: NBG
 Business performance 
 
                                                   (Rs.in crores) 
 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
 Deposits
 
 Segmental      4,29,509     4,89,216*   5,27,480     38,264   7.82
 Advances
 (non-food)
 
 * 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
 facilities.
 
 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
 been enabled.
 
 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
 processed.
 
 Over 4.46 lakhs SHGs are credit linked with credit deployment of Rs.5,134
 crores. Our market share in SHGs is 22%.
 
 Agri Business
 
 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      %
                                              Achievement
 
 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.
 
 Special Campaigns
 
 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
 2013-14.
 
 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
 campaign.
 
 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.
 
 Growth enablers
 
 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 Business
 
 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
 Balance (AQB).
 
 The above mentioned initiatives strengthened customer acquisition.
 
 Other Highlights
 
 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
 opened.
 
 NRI Services
 
 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
 approach.
 
 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
 2013-14.
 
 exhibit 6: corporate & institutional tie-Ups
 
 particulars       31.03.2013       31.03.2014       Growth in
                                                     FY 2013-14
                                                     Absolute        %
 
 Defence Salary     22,27,930        23,79,925        1,51,995    6.82
 Package and
 Para Military
 Salary Package
 accounts
 
 Other Salary       48,51,168        51,85,098        3,33,930    6.88
 Package
 Accounts
 
 Total No of        70,79,098        75,65,023        4,85,925    6.86
 Salary Package
 Accounts
 
 CASA                  21,262           24,735           3,473   16.33
 (Rs.in Crores)
 
 Auto loans
 
 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.
 
 Education loans
 
 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.
 
 Personal loans
 
 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
 loans.
 
 Select branches at major centres have been authorised for execution of
 home loan documents to enhance the level of customer convenience and
 satisfaction.
 
 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)
 
 Out standings 
 (% 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
 retrieval system.
 
 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%)
 Sanctioned
 
 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%)
 Sanctioned
 
 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%)
 customers
 availing the
 facility
 
 Amount of cash       2,246.75       4,860.55       2,613.80
 pick-up                                                (116%)
 
 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.
 
 Government Business
 
 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,
 respectively.
 
 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
 branches.
 
 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
 2013-14.
 
 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%
 (O/s)
 
 Non Fund           409,477         466,598              14%
 Based (Vol)
 
 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
 services provided.
 
 e-Trade SBI
 
 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
 Financing Scheme)
 
 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
 e-VFS/e-DFS platform
 
 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
 and NBFCs.
 
 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)
 
                         2012-13            2013-14
 
 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
 these projects.
 
 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
 
 projects                         Details
 
 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, 
                                  Maharashtra.
 
 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, 
                                  Karnataka
 
 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
 countries.
 
 exhibit 17: Business performance
 
 of Foreign offices               (In USD Million)
 
                   31.03.2013         31.03.2014     YoY      YoY
                                                     Growth   increase
                                                              in (%)
 
 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
 Credit
 
 Deposits           13,374.41           14,758.33  1,383.93    10.35
 
 Operating profit      660.35              676.41     16.05     2.43
 
 Overseas expansion
 
 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 
                                            the year
 
 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
 exchange Cos/Investments
 
 total                            186                 4       190
 
 * Maamigili sub-office in Maldives was upgraded to a Branch and Jackson
 Heights branch in the USA was closed.
 
 Treasury Management
 
 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.
 
 Remittance
 
 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.
 
 Domestic Operations
 
 Merchant Banking
 
 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
 market.
 
 The Bank earned a fee income of USD 79.70 million from foreign currency
 term loans concluded during FY 2013-14 through syndication/ bilateral
 deals.
 
 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
 globally.
 
 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.
 
 Correspondent relations
 
 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
 messages.
 
 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
 and FPOs.
 
 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
 are:
 
 Debit Card
 
 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.
 
 Prepaid Card
 
 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
 2013-14.
 
 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 
 Rs.6.43 crores.
 
 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
 payment facilities.
 
 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
 arrangement.
 
 Recovery through auction of assets using the Securitisation and
 Reconstruction of Financial Assets and Enforcement of Security Interest
 (SARFAESI) route.
 
 Filing suits in Debt Recovery Tribunals and other Courts for recovery
 of dues.
 
 Identifying and engaging with strategic investors for takeover of
 stressed assets.
 
 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
 used diligently.
 
 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
 related risks.
 
 Asset Quality Improvement measures for Agriculture
 
 loans
 
 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
 FY 2013-14.
 
 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
 rating agencies.
 
 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
 Up gradations
 
 Write Offs                 744          5,594        13,176
 
 Recoveries in Written      962          1,066         1,543
 Off Accounts
 
 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.
 
 Alternate Channels
 
 Exhibit 23: Alternate channels Growth        (Numbers)
 
 As on       ATMs       Kiosks          cash        total
                                        Deposit
                                        Machines
                                        (CDMs)
 
 31.03.2013 25,247      1,230           698        27,175
 
 31.03.2014 40,768      1,231         1,516        43,515
 
 ATM
 
 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
 convenience.
 
 INB & e-Commerce
 
 Internet Banking
 
 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
 Awards:
 
 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
 customer experience.
 
 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.
 
 Networking
 
 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
 performance.
 
 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
 general public.
 
 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
 origination.
 
 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
 Bank''s interests.
 
 Credit Risk
 
 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.
 
 Mitigation measures
 
 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
 
 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,
 among others.
 
 Mitigation measures
 
 The Bank''s market risk management consists of identification and
 measurement of risks, control measures, monitoring and reporting
 systems.
 
 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
 policies.
 
 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
 
 Operational Risk is the risk of loss resulting from inadequate or
 failed internal processes, people and systems or from external events.
 
 Mitigation measures
 
 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
 
 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
 Group entities.
 
 Mitigation measures
 
 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
 Board.
 
 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
 published Disclosures.
 
 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
 
 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
 Management System.
 
 Mitigation measures
 
 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.
 
 Mitigation measures
 
 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
 operational recently.
 
 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.
 
 Internal Controls
 
 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
 General Manager.
 
 Management Audit
 
 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
 two years.
 
 Credit Audit
 
 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
 Credit Audit.
 
 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
 solution.
 
 Circle Audit
 
 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
 least vulnerability.
 
 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
 report.
 
 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
 business partner.
 
 The Bank has a total permanent staff strength of 2,22,033 on 31st
 March, 2014.
 
 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
                                             staff
 
 As on 31.3.2013    80,796       1,09,686         37,814    2,28,296
 
 less:               3,861          8,388          2,035      14,284
 Retirements /
 Attrition
 
 Add /less (-):  1,426 ( )      1,426 (-)              -           -
 Due to 
 promotion
 of clerical 
 staff to
 officers grade
 
 Add: New 
 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
 under:
 
 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
 profitability.
 
 Industrial Relations
 
 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
 without fear.
 
 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 
 
          30                                  20
 
 Other Initiatives
 
 The Bank has improved staff perquisites like provision of sabbatical
 leave for women and single men (with children and/or aged parents)
 employees
 
 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
 year.
 
 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
 external institutes.
 
 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
 e-learning portal.
 
 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
 executives.
 
 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
 implementation.
 
 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
 
 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
 (aBCI).
 
 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.
 
 Supporting healthcare.
 
 Assistance to poor & underprivileged.
 
 Environment protection.
 
 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
 during 2013-14.
 
 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.
 
 Green Banking:
 
 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
 practices.
 
 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
 Singapore.
 
 Won an award for ''Best CSR practices'' at Asian BFSI awards 2013 in
 Dubai.
 
 other prominent awards conferred
 
 IPE BFSI award 2013 for Best CSR practices.
 
 India''s Most ethical Companies awards 2013 for ethical Company in
 Banking.
 
 Asia Green Future Leadership award 2013 for ''Best Green Service
 Innovation''.
 
 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
 Market.
 
 Associate Banks
 
 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
 Ratio
 
 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
 Dialogic.
 
 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
 Subsidiaries
 
 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
                   Amt.         %
 
 1 State Bank of   676.12   75.07    90,877     72,953     65,333  1,695  
   Bikaner &
   Jaipur
 
 2 State Bank of   367.55  100.00  1,44,012   1,20,859     98,885  2,691
   Hyderabad
 
 3 State Bank of   628.63   90.00    73,976     61,087     50,891  1,164
   Mysore
 
 4 State Bank of   907.10* 100.00  1,04,105     89,485      77,811 1,448
   Patiala
 
 5 State Bank of   505.85* 78.90*  1,05,285     88,707      70,482 1,370
   Travancore
 
 Name of the       Net        CD     CAR     Gross     Net      return
 Bank                                                           on 
                   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
 Hyderabad
 
 State Bank of      274       83.31  11.08   5.54      3.29      5.57
 Mysore
 
 State Bank of      448       86.95  10.38   4.83      3.17      4.95
 Patiala
 
 State Bank of      304       79.46  10.79   4.35      2.78      8.82
 Pravancore
 
 Exhibit 33:
 
 Non Banking Subsidiaries                        (Rs.in crores)
 
 s.  Name of the subsidiary 
     company                      ownership 
                                  (state %      of         Net profit
                                                           (Losses)
 No                               Bank 
                                  interest) /   ownership  for the 
                                                           FY 2013-14
                                  crores
 
 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
 
 exhibit 34:
 
 Joint Ventures (Rs. in crores)
 
 s. Name of the subsidiary 
    company                          ownership 
                                     (state         % of     Net profit
                                                             (Loses)
 No                                  Bank 
                                     interest) /   owner
                                                   ship       for the 
                                                              FY 2013-14
                                     crores
 
 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
 
 RESPONSIBILITY STATEMENT
 
 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
 basis.
 
 ACKNOWLEDGEMENT
 
 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
Source : Dion Global Solutions Limited
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