State Bank of India Directors Report, SBI Reports by Directors

State Bank of India

BSE: 500112|NSE: SBIN|ISIN: INE062A01020|SECTOR: Banks - Public Sector
Apr 28, 16:00
7.5 (2.66%)
VOLUME 1,114,024
Apr 28, 16:15
7.7 (2.73%)
VOLUME 14,152,004
Download Annual Report PDF Format 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | 2010
Directors Report Year End : Mar '16    Mar 15


The total assets of your Bank have increased by 10.30% from Rs.2048079.80
crore at the end of March 2015, to Rs.2259063.03 crore as at the end of
March 2016. during the period, the loan portfolio increased by 12.59%
from Rs.1300026.39 crore, to Rs.1463700.42 crore. Investments slightly
decreased by 0.97% from Rs.481758.75 crore to Rs.477097.28 crore as at the
end of March 2016. A major portion of the investment was in the
domestic market in government securities.

Your Bank's aggregate liabilities (excluding capital and reserves) rose
by 10.17% from Rs.1919641.57 crore on 31st March 2015 to Rs.2114788.60
crore on 31st March 2016. The increase in liabilities was mainly
contributed by increase in deposits and borrowings. The deposits rose
by 9.76% and stood at Rs.1730722.44 crore as on 31st March 2016 against
Rs.1576793.24 crore as on 31st March 2015. The borrowings increased by
9.28% from Rs.205150.29 crore at the end of March 2015, to Rs.224190.59
crore as at the end of March 2016 mainly attributable to Capital
Instruments issued in India and borrowings & refinance outside India.


Total Interest income has increased from Rs.152397.07 crore in FY2015 to
Rs.163685.31 crore in FY2016 registering a growth of 7.41%, due to higher
volumes. The average yield on advances (based on daily average) in
India has slightly decreased from 10.55% in FY2015, to 10.00% in
FY2016. Income from resources deployed in treasury operations in India
increased by 20.17%, mainly due to higher average resources deployed.
The average yield has decreased to 7.92 % in FY2016, from 7.98% in

Total interest expenses have increased from Rs.97381.82 crore in FY2015,
to Rs.106803.49 crore in FY2016. Interest expenses on deposits during
FY2015- 16 recorded an increase of 10.90%, compared to the previous
year. The average cost of deposits (based on daily average) in India
has decreased from 6.39% in FY2015, to 6.22% in FY2016, whereas the
average level of deposits in India grew by 14.16%.


Non-interest income increased by 24.73% to Rs.28158.36 crore in FY2016,
as against Rs.22575.89 crore in FY2015. during the year, your Bank
received an income of Rs.475.83 crore (Rs.677.03 crore in the previous
year) by way of dividends from Associate Banks/ subsidiaries and joint
ventures in India and abroad, and Rs.5168.80 crore (Rs.3618.05 crore in the
previous year) by way of profit on sale of investments.

There was an increase of 6.70% in the Staff Cost from Rs.23537.07 crore
in FY2015, to Rs.25113.83 crore in FY2016. Other Operating Expenses
registered an increase of 14.82% mainly due to increase in expenses on
rent, taxes, lighting, repairs and maintenance and miscellaneous


Your Bank registered an increase in Operating Profit in the current
financial year, as compared to previous financial year. The Operating
Profit of your Bank for FY2016 was at Rs.43257.81 crore as compared to
Rs.39537.28 crore in FY2015, an increase of 9.41%. Your Bank posted a net
Profit of Rs.9950.65 crore for FY2016, as compared to Rs.13101.57 crore in
FY2015, i.e. a decrease of 24.05% due to higher provisioning
requirements on nPA.


Major provisions made in FY2016 were as under:

Rs.26984.14 crore (net of write-back) for non-performing assets (as
against Rs.17908.06 crore in FY2015), Rs.2157.55 crore towards Standard
Assets (as against Rs.2435.38 crore in FY2015), Rs.3823.41 crore towards
Provision for Tax (as against Rs.6212.39 crore in FY2015). An amount of
Rs.149.56 crore was provided for depreciation on Investments (as against
Rs.590.07 crore written back from depreciation on investments in FY2015).


An amount of Rs.2985.20 crore (as against Rs.4029.08 crore in FY2015) has
been transferred to Statutory Reserves. An amount of Rs.345.27 crore (as
against Rs.105.50 crore in FY2015) has been transferred to Capital
Reserves. An amount of 4267.35 crore (as against Rs.5889.06 crore in
FY2015) has been transferred to Revenue and other Reserves.

Revenue and other Reserves include Foreign Currency Translation Reserve
of Rs. 6056.25 crore as on 31st March 2016 (Rs. 6172.35 crore as on 31st
March 2015)


The national Banking Group (nBG) is the largest business vertical of
your Bank, anchoring 96.04% of total domestic deposits, and 53.57% of
total domestic Advances, as on 31st March, 2016. The Group comprises
six strategic business units and is also the largest Business Vertical
in terms of Branch network and Human Resources.

A steady stream of technology-driven innovations and changing consumer
preferences is rapidly transforming the retail banking landscape. Your
Bank has been at the forefront in leveraging technology in banking,
through the launch of innovative products and solutions aimed at making
banking more convenient to customers. Your Bank has a multi-channel
delivery model in line with its strategy to serve its customers by
offering them the choice to transact through any channel, time and
place of their preference. All these initiatives have essentially
revamped the Bank's process and tools, making it easier for the
customer to conduct business. Your Bank also strives to anticipate the
future needs of customers and deliver those expectations through
technology-based solutions. In FY2016, your Bank scaled up its
offerings across various channels – digital branches, mobile, internet
and social media.

Retail Banking is also playing an increasing role in customer
acquisition and CASA growth on the liabilities side. Your Bank
continued to see strong momentum in acquisition of retail deposit
customers and consequently robust growth in the retail deposit base.
Simultaneously, to meet the aspirations of this growing customer base,
Retail Assets are being strategically positioned to grow to form a much
larger proportion of total advances. To this end, your Bank is
constantly endeavoring to come up with customer centric products and
processes in Retail, using technology to deliver a better customer
experience. In line with our endeavour to be a 'Smart Bank for India on
the Go', loans@SBI was launched during the year for online sourcing of
home loans, auto loans and other retail loan applications and
thereafter, monitoring follow-up action of such applications. Customers
can now check their eligibility and scheme details using the
interactive eligibility assessment tool and apply online. Customers
also have the facility to track the status of their applications till
their loan is sanctioned.

a. PERSONAL BANKING 1. Home loans

State Bank of India has the largest Home loan portfolio in the Banking
Sector and market share of over 25% amongst All Scheduled Commercial
Banks (ASCBs). Home loan portfolio constituted 15.33% of Whole Bank
Advances as on 31st March, 2016.

While Home loan portfolio has more than doubled during the last 5
years, NPA levels have more than halved in absolute terms and reduced
to one- fourth in percentage terms during the same period. Total Home
loan and Home Related loan portfolio as on 31.03.2016 stood at
Rs.2,01,755 crore.

thereafter, monitoring follow-up action on such applications. Home loan
customers can now check their eligibility, scheme details, etc. using
the interactive eligibility assessment tool and apply online. Customers
also have the facility to track the status of their applications till
their Home loan is sanctioned.

during FY2016, several initiatives were taken by your Bank to give an
additional thrust to its Home loan portfolio. Some of the important
initiatives in this regard are as under:- Rs, project tatkal: A
completely re-vamped structure and processes for end to end
transformation of Home Loan delivery was rolled out under Project
TATkal initiative, with a focus on strengthening delivery of services
to customers and bringing about reduction in the average time taken for
delivery of Home loan sanctions / disbursements.

Rs, online customer acquisition Solution (ocaS) launched for sourcing
Home Loan applications online and Rs, Griha tara campaign launched to
encourage every member of the bank staff to market Home loan proposals.
The campaign was very successful and about 35% of the staff members
participated in the Campaign. Over 1.5 lakh Home loan proposals valuing
Rs.32,501 crore were mobilised under the Campaign. In addition to
business development, the Campaign has also helped in improving
customer service levels.

Rs, Launch of the following new and innovative Home Loan products:

X Flexipay Home loan (Home loan with Flexible Repayment option).

X corporate Home loan (Home loan to Corporate / Institutions for
creating housing stock for their employees / directors).

Rs, mous / tie-ups with the following Home loan lead aggregators /
Service Providers:

X Sbicap Securities limited (SSl): Tie up to leverage sales force of
SSl to expand presence in key markets by improving feet-on-street and
provide door step delivery to valued customers.

X & paisa bazaar. com: Tie-up for extending our reach on
online space and acquisition of good quality Home loan leads.

X proptiger & liases Foras: Subscription of Research data, property
listings, granular data on new launches, price movement and inventory
position in respect of all ongoing projects in key Home loan markets.

2. auto loans

SBI's Car loan Scheme, which is now available online, offers the best
to our customers - Competitive interest rates; Finance On Road Price;
and the Longest payment period of 7 years, with no
prepayment/foreclosure penalty, no advance EMI and with an option for
an Overdraft facility. Your Bank has also introduced the loyalty Car
loan Scheme for existing Housing Loan borrowers, offering concession in
interest rate and 100% financing of on-road price. Your Bank has entered
into tie-up with SBI Caps Securities limited (SSl) as our Corporate
Agency for marketing Auto Loan products and became the no. 1 financier
of Maruti Cars for the year.

3. Education loans

Your Bank has a total exposure of Rs.15,177 crore with a Market share of
23% amongst all scheduled commercial banks. Government of India has
rolled out a Credit Guarantee Scheme for Education loans upto Rs.7.5 lakh
and Skill loans scheme and launched the Vidya Lakshmi Portal to provide
a single point of service to students. Your Bank has also integrated
the portal with its Online Application system for seamless delivery.
For students going abroad for higher studies, SBI Global Ed-Vantage
Scheme with limits up to Rs.1.5 crore was launched which is rapidly
gaining in popularity.

4. personal loans

Continuing the digital journey and to provide seamless and hassle free
banking experience your Bank has launched the following initiatives in

- Online Overdraft against Fixed deposits through Internet Banking

- End to end digitized process for loan against Shares wherein
customer can avail the loan without visiting the Branch.

- Online Application for Xpress Credit Personal Loan with document
upload & pick up facility with system based computation of net Monthly

- Digitization of Pre and Post sanction Inspection process using
Tablets for the convenience of the customers.

Consistent focus on streamlining of processes has resulted in robust
performance in Personal Loans, with growth of Rs.14152 crore during
FY2016 (25% YOY).

5. domestic deposits

The Domestic deposit portfolio grew by 10.09% during FY2016. domestic

Savings Bank deposits have registered a Y-O-Y growth of 13.17% (from
9.51% in FY2015) while Current Account deposits have grown by 9.62%.
Despite declining interest rates the Term Deposit portfolio has
registered a growth of 8.20% during FY2016. Your Bank's Market Share
in deposits improved from 17.00 % in March 2015 to 17.57 % in March

Following digital services were introduced in FY2016 for customers:

- Account opening forms have been made fully compliant with FATCA,
Common Reporting Standard (CRS) and Central KYC Registry (CKYC) norms.

- Online Account Application Facility was extended to all Savings
Bank products including Basic Savings Bank deposit Account (BSBdA) and
Small Account.

- e-Commerce: A Holiday Savings Account (with online end to end
capabilities) in partnership with Thomas Cook launched in February

- Introduction of SBI Quick: Missed Call Banking facility for
balance enquiry, blocking ATM Card, Car/Home loan enquiry using mobile
phone. More than 70 lakh customers are already registered for this
facility and daily calls are in excess of 4 lakh.


We enjoy the patronage of 17 lakh discerning NRI customers who in turn
take pleasure in being served through 81 specialized and dedicated nRI
branches and 100 NRI intensive branches as on 31st March, 2016.

Customer centric measures for NRIS introduced during FY2016 include:

- Online application for loans enabled for NRIS.

- Account opening forms were made fully compliant with FATCA, CRS and
CKYC norms.

- Creation of 'Overdraft' against NRE/NRO deposit accounts through
Internet Banking (INB).

- Activation of Debit card through INB for NRI customers.

- Fx-out facility for sending outward remittance through all our
branches has been enabled for NRE and NRO accounts.

- Facility of Instant NRI Account opening through our Relationship
Managers (RMs) posted at UAE Exchange Centre and Al Ansari Exchange in

7. Salary account tie-ups

during FY2016, the total Salary Account customer base has grown to
82.04 lakh. In addition to the Salary Packages for the Defence, Para
Military, Railways, Central Government, State Governments and Police,
employees from leading MNCs are also banking with your Bank. Online
application facility for Salary Accounts was introduced during the

8. premier banking

The High net worth Individual (HnI) segment of the Personal Banking
business registered a growth of 31% contributing Rs.229749 crore average
deposits as of 31st March, 2016. To provide an additional, convenient,
service channel to HNIs beside the branch, your Bank launched a
Priority Banking Centre at Bengaluru in November, 2015. This centre
offers personalized services through a registered mobile number,
enabling valued customers to conduct all non- cash transactions during
extended business hours from 8 a.m. to 8 p.m. Services for the Group's
products such as, Mutual Funds, Insurance and Credit Card, are also
made available through the Centre.

9. Sovereign Gold bonds

The Government of India launched the Scheme during FY2016 with an
intention to reduce the demand for physical gold as an investment
asset. Your Bank participated in all the three tranches issued during
the year and mobilized an aggregate amount of Rs.210.85 crore (equivalent
to 777 Kgs of gold) achieving the highest aggregate market share of
15.83% amongst all participants.


as on atms kiosks cash deposit total
(mFk + SSk) machines (cdms), (Sbi)

31.3.2014 40768 2583 1516 44867

31.3.2015 42454 2595 1849 46898

31.3.2016 42740 2595 5753 51088

1. atms/ recyclers

State Bank of India, along with its Associate Banks has one of the
largest ATM networks in the world with more than 59000 ATMs including
Kiosks, Cash deposit Machines and Recyclers as on 31.3.2016.

routed through our ATM network with an average hit rate of more than
214 transactions per day per ATM. State Bank group has a debit Card
base of 23.34 crore. On an average, the volume of cash that our Group
ATMs dispense is Rs.3039 crore a day.

during FY2016, your Bank has installed 4220 ATMs and Recyclers.
Population group-wise your Bank has a 50:50 ATM coverage of Metro/
Urban and Semi- Urban/ Rural population groups. The ATM Channel handles
56% of total Alternate Channel transactions and 43% of the total
financial transactions of your Bank. With a 29.66 % of market share as
per RBI, State Bank Group's (SBG) ATM network transacts 50.83 % of the
country's total ATM transactions (as on dec'15). On an average, over
11.61 million transactions per day are Your Bank has so far installed
4953 Recyclers (SBG 5768) to provide customers 24 x 7 cash withdrawal
and cash deposit facilities.

More than 1200 e-Corners have been set up across the country where
customers can avail the entire gamut of services from this Channel,
e.g. cash withdrawal, cash deposit, mini statement, balance enquiry,
PIn change, donations, payment of fees, passbook printing etc. Your
Bank has introduced dynamic Currency Conversion (dCC), a value added
facility for foreign Master Card holders, whereby cardholders get the
market currency conversion rate while withdrawing money at domestic

More than 1153 ATMs during FY2016 have been enabled as Talking ATMs for
Visually Challenged customers. Thus, the total number of Talking ATMs
has gone up to 9753 as on 31st March, 2016. Every new machine added
comes with this feature ab initio.

Care for the physically challenged is our priority too. 3734 of our
ATMs have ramps to facilitate easy access for the physically challenged
persons. Wherever possible, ramps and / or side railings are being
provided. Over 1156 of our ATMs are on solar power back- up and the
count keeps growing. ATM user-safety is our concern too. Apart from
physical caretaker arrangements, 3000 ATMs have been brought under
Electronic surveillance during the year. Your Bank is also planning to
cover another 8000 ATMs under Electronic Surveillance during the

2. swayam: barcode based

passbook printing kiosks

Your Bank has rolled out more than 6,000 SWAYAMs (Barcode based
Passbook Printing Kiosks) at its branches and onsite/offsite lobbies.
Using these kiosks, customers can print their passbooks on their own
using barcode technology.

3. Green channel counter

Green Channel Counter (GCC) facility has been rolled out at all retail
branches of your Bank. On an average 7.40 lakh transactions are being
routed through GCC every day. The percentage of GCC transactions has
improved from 20.08% in March 2015 to 27.64% in March 2016.

4. Green remit card

Some 3.91 crore transactions were carried out through the Green Remit
Card (GRC) route during FY2016, compared to 3.48 crore in FY2015. The
average daily transactions of GRC has increased from 1.16 lakh in
FY2015 to 1.37 lakh in FY2016. This initiative won the SKOCH Award
under Technology Products Category in 2015.

5. internet banking & e-commerce

Your Bank's net Banking website '' is the eighth most
popular online global financial site and the only Financial site from
India to figure in the list of Top 10 global financial sites (Source
IIFl). This highly secured and cost-effective channel has enabled
around 124 crore transactions during FY2016, recording 39% growth over
the previous year.

It provides robust and customer friendly net banking services to your
Bank's retail and corporate customers, continuously keeping an eye on
evolving consumer trends, characterized by increasing adoption of
digital channels. In this pursuit, during FY2016, your Bank ensured
continuous up gradation of the 'onlinesbi' portal to offer more
user-friendly look & feel and features such as, Online over draft
against TdR/STdR, facility to register/ inquire/cancel nomination
online, digital Signature Certificate as a Second Factor Authentication
for Corporate net banking users, Online registration for Retail and
Corporate Internet Banking, 'Quick Transfer' facility up to Rs.5000.00
without registering the beneficiary and 'State Bank mCASH' for remitting
money through email ID or Mobile number of the beneficiary, to enrich
the digital experience of the customers.

In order to rejuvenate the e-Commerce ecosystem through strategic

partnerships, your Bank's digital offerings are upgraded continuously
to cater to the e-Tendering, e-Auction, e-Collection and bulk payments
related requirements of the Govt. depts./PSUs/ large and Medium
Corporate. during FY2016, your Bank had entered into about 18,000 new
merchant tie-ups, directly or through State Bank Collect or through
e-Commerce aggregators facilitating around 67 crore e-Commerce

6. contact centre customer Service

Your Bank's Contact Centre has been servicing customers through toll
free numbers 1800 425 3800 or 1800 11 22 11 apart from toll number
080-26599990. It has emerged as a strong delivery channel handling
average call volumes of around 4 lakh calls per day. The Contact Centre
is operating from multiple locations like Vadodara, Bangalore, Agra &
Kolkata and is servicing in 12 languages to its customers.

The Contact Centre is also handling calls received from overseas
customers at 19 International Toll-Free numbers servicing 20 countries.
It also has a dedicated toll-free line for queries related to the
Pension Payments (1800110009) & Pradhan Mantri Jan dhan Yojna
(1800110009). It is also responding to e-mails received on SBI
Corporate email IDs and

Apart from servicing enquiries related to customers' accounts and
Bank's products, the Contact Centre is providing significant support to
other technological channels for e.g. debit Card hot-listing and
status, trouble shooting for Mobile Banking, Internet Banking and
Mobile wallet, status of NEFT/RTGS and SBI Express Remittances,
complaint registration. The contact centre is also offering transaction
services, such as funds transfer within SBI accounts, issue of Fixed
deposits, stop payment of Cheque(s), statement of accounts, to the
customers registered for Phone-banking.

Your Bank has added the following services that will go a long way in
enhancing customer convenience and support:

- Generation of ATM PIN

- Verification of mobile number update requests received through
Internet Banking

- Issue interest certificate of Home loan, Education loan and deposit

- Statement of Account through email

- Phone banking Registration through the Contact Centre and State
Bank ATMs

- Migrating TPIn customers (having registered Mobile number) to
Phone- banking

The Contact Centre is popular amongst all sections of the society in
rural, semi-urban as well as urban areas. In view of this, your Bank is
continuously monitoring and reviewing its processes to enhance the
simplicity and effectiveness of the Contact Centre. Further, great
emphasis has been placed on technology, infrastructure and information

In order to utilize the Contact Centre infrastructure to the fullest
and generate revenue for your Bank, it has significantly expanded some
of its outbound processes by making calls for:

- Soft recovery of delinquent personal and agri. segment Borrowers

- Completion of online application form of personal segment loans

- Cross-selling and Lead generation

7. other recent initiatives

A Mobile App State bank no Queue was launched during the year. This
App enables customers to self-generate e-tokens for availing select
Banking services at select Branches. This helps in reducing waiting
time that customers have to endure. It also reduces crowding at a
branch as the token is generated before the customer reaches the

Sbi Quick was launched as a one stop application for all
non-Financial transactions. now a customer can register/ deregister for
Missed call Banking, do Balance enquiry, get Mini Statement, block ATM
card, apply for Home/ Car loan & view PM Social Security schemes by
logging into SBI Quick.

customer Experience Excellence project : during FY2016, your Bank
accelerated the roll out of Customer Experience Excellence Project
(CEEP). Under this initiative, 2674 branches were covered during the
year and the total number of branches under CEEP stands at 3006 as on
31st March, 2016. The core objective of the CEEP is to improve crowd
management; achieve reduction in wait times and reduction in the
service time (processing time); migration of customers to the usage of
Anytime Channels such as ATM, CDM, Recyclers, Swayam and Electronic
Cheque deposit Machine; and streamlining the process of Account

Some key initiatives introduced by CEEP include:

Rs, Provision of all Anytime channel machines viz. ATM, CdM / Recycler,
Electronic Cheque drop Box Machine (ECdM), SWAYAM Bar coded Passbook
Printer and Internet enabled PC with printer for online opening of
accounts at select Branches which have high walk in customers

Rs, Provision of integrated Queue Management System (QMS) and a
customer Feedback TAB to these Branches for better crowd management
through real time monitoring and Branch choreography to tackle peak
level crowd.

- Introducing Grahak Mitras to facilitate issue of tokens and
facilitate migration of customers to Anytime Channels.

- Standardised Single Window Operator (SWO) roles in Branches and
creation of Service desks for non cash transactions

- Creation of an Account Opening Cell to streamline the account
opening process Rs, Standardized process for sales management and cross

8. digital banking - sbiintoucH

India on the Go is epitomized by India's ever increasing Gen-Y and
Gen-Z fast- track population, who are quick to absorb new technologies
and who are very comfortable using digital channels for almost all
day-to-day activities in life. Your Bank's SMART strategy is to
provide this digital Banking experience to such people through our
futuristic branches with the sub-brand sbiInTOUCH. These branches are
equipped with state-of-the-art devices/kiosks, allowing customers to
transact on a self-service mode. Besides onsite support, advisory
services are available through Remote Expert on hi-defnition video

These branches provide a consistent experience across omni channels and
comprise transaction processing stations (self-service zone),
information and interaction stations and advisory rooms. Right from
account opening (including enablement for transacting through alternate
channels like Internet Banking and Mobile Banking and instant issuance
of personalised debit cards) to Remote Expert advisory, banking
products and services delivery including products and services of SBI
subsidiaries viz. life Insurance, General Insurance, Mutual Funds and
credit cards. e-Trade through SBI Cap Securities are made available

The first set of 7 sbiInTOUCH branches, under the sub-brand
sbiInTOUCH was launched on 1st July, 2014. These were opened as
working pilots in New Delhi, Mumbai, Kolkata, Chennai, Ahmedabad and
Bengaluru. during FY2016, your Bank has opened 115 SBIINTOUCH Branches
to provide digital experience to customers across the country. These
Branches are available in 70 districts of the country. Going forward,
your Bank intends to continue its journey of expanding this digital
footprint even more widely.

9. mobile banking

Your Bank, the Banker to digital India, has changed the way its
customers do Banking. Bridging the gap between Customers and Bank,
SBI's innovative applications have brought Banking closer to the
customer 'on the go'.

Superior customer experience and trust in your Bank has made us the
leader in Mobile Banking across the banking sector. Your Bank has
leaped to the number one position in terms of value of transactions
with a quantum jump in market share from 9.82% in March 2015 to 35.97%
in dec'15, while consistently maintaining the number 1 position in
terms of volumes with 38.44%. market share in december' 2015.

Your Bank saw astronomical growth in all the facets of its Mobile
Banking applications during FY2016 over FY2015. The volume of
transactions saw a growth of 86.87% and value of transactions
multiplied manifold to grow by 721%.

during the year, your Bank launched mobile banking applications for SME
& Corporate customers, State Bank Anywhere Saral & State Bank
Anywhere Corporate. These applications allow customers to do all their
banking transactions such as Account Enquiry, Mini Statement, Utility
Bills payment, EPF Payment, creation of Fixed deposits and a lot more.
The Corporate customers get additional features which allow them to
initiate payment to suppliers, authorize e-cheques and enquiry of
account transactions.

10. State bank buddy

latest addition to your Bank's plethora of technology offerings is its
Mobile Wallet State bank buddy. Within 7 months of launch, Buddy user
registration has crossed 26.60 lakh. The wallet has seen more than 48
lakh transactions to the tune of Rs.230.71 crore. Out of which Rs.11.47
crore are merchant transactions, upto 31st March, 2016. Buddy is the
product designed for the tech savvy generation, the youth of the
country, who are in touch with the world through their Mobiles. A user
can Send & Ask Money by knowing just the mobile number of the counter
party, Recharge mobile/dTH, Pay utility bills,

Shop online and Book a Flight, Bus, Hotel, Movie tickets, online food
and buy gifts through State Bank Buddy wallet. Buddy marketplace boasts
of partnership with some of the biggest and the most popular names in
the e-Commerce industry.

Your Bank's various Mobile applications can be viewed and downloaded
from the State Bank App Kart, which is available on both iOS &

11. marketing & cross Selling

Your Bank is the Corporate Agent of SBI life Insurance Co. limited and
SBI General Insurance Co. limited and has distribution Agreement with
SBI Mutual Fund, SBI Cards & Payment Services Private limited and SBI
Cap Securities limited for distributing their products. Your Bank also
has tied up for distribution of products of UTI Mutual Fund, Tata
Mutual Fund, Franklin Templeton Mutual Fund, l&T Mutual Fund, ICICI
Mutual Fund and HdFC Mutual Fund. In addition, all the branches are
now authorized to open accounts under national Pension System.

during Fy2016

- Cross Selling income increased from Rs.388.28 crore in FY2015 to
Rs.489.04 crore in FY2016, recording a YoY growth of 25.95%.

- Income from SBI life increased from Rs.244.62 crore in FY2015 to
Rs.337.18 crore FY2016, recording a growth of 37.84%.

- Income from SBI General increased from Rs.56.64 crore in FY2015 to
Rs.73.09 crore in FY2016, recording a growth of 29.04% over the
corresponding period of last year.

- Mutual Funds, gross mobilization increased from Rs.20313 crore in
FY2015 to Rs.39577 crore in FY2016. Also, number of SIPs mobilized
increased from 1,57,076 to 2,40,009 in FY2016, recording a growth of
52.80% over the corresponding period of the last year.

- Your Bank marketed 1.46 crore Personal Accident Insurance (PAI)
policies and 4.88 lakh Health Insurance policies of SBI General in
FY2016. Number of Health Insurance policies issued, increased by 82%
and premium increased by 43.62 % to Rs.106.06 crore.

- SBI Card & Payment Services Private limited: 1.94 lakh credit cards
were issued through your Bank branches in FY2016.

- Your Bank earned commission income of Rs.0.34 crore in FY2016 from
SBI Cap Securities limited. 2.87 lakh Demat accounts were opened in
FY2016, in comparison to 2.68 lakh accounts opened in the FY2015.

- 35,043 accounts were opened under national Pension System in
FY2016, in comparison to 13,477 accounts opened in FY2015.

12. Wealth management

Your Bank has designed, developed and launched, on 14th January, 2016
SBI Exclusif, a unique suite of Wealth Management services (WMS) for
its high net worth customers. At present, only resident individual
customers are eligible, but it will be extended to nRIs and Corporate /
Trusts shortly.

Some key highlights of the offering: Rs, India's first ever e-wealth

- The technology component of our Wealth Management Initiative is a
major digitization effort of your Bank.

- dedicated RM available through voice/video/chat

- Services available beyond banking hours

- World Class advisory services available through expert investment

- Open platform with a suite of best- in-class products

- Capability to execute MF orders in over 4,500 schemes across 15

- Asset allocation and one-view available across all asset classes

- State-of the art tools like risk profiling, financial planning and
portfolio analytics

- Robust infrastructure enabling highest amount of security

- 2-Factor authentication protocols to bring enhanced layer of
security for each transaction.

- Middle Office compliance team to maintain tight controls on quality
of sales


Your Bank has been the pioneer and market leader for SME financing. With
over 1 million customers, the SME portfolio of Rs.1,89,534 crore as on
31st March, 2016 accounts for nearly 12% of your Bank's total advances.
The revival of business sentiment and growth in GDP has brought the
focus sharply on the growth and viability of SME units. The
Government's initiatives – Make in India, CGTMSE cover and MUdRA – are
providing a significant shot in the arm to the SME segment.

Your Bank's Endeavour in driving SME growth rests on three pillars:

a) Customer Convenience

b) Risk Mitigation

c) Technology based digital offerings

In FY2016, Ecosystem Financing (project Shikhar) has been started by
your Bank to take advantage of growing e-Commerce footprint in the
economy. Your Bank's focus had been on digital banking platform and
launched various facilities for SMEs based on technology like Credit
Risk Model to provide automated instant sanction of loans under
e-tailer sellers financing, which is a truly disruptive offering, where
loan to the seller is given at the click of a button. An in-house
'digital Tool' is being used for instant sanction of loans to taxi
operators or owners associated with a taxi aggregator's platform.

Apart from this, your Bank is leveraging technology for capturing early
warning signals and has introduced digital inspection of units.
Overall, SBI is leveraging technology in every facet of the value
chain, be it sourcing business, designing products, streamlining
processes, improving delivery or monitoring and follow-up.

Your Bank has taken several initiatives to build its SME portfolio in a
risk mitigated manner and has brought about significant changes in (i)
Product Suite, (ii) Processes (iii) delivery.

(i) product Suite:

All the products offered to Micro, Small & Medium enterprises have been
strengthened and made more hassle free. Scoring Models have been
introduced for loans up to Rs.10 lakh. new products like Asset Backed
loans (ABl) have been reviewed and upgraded suitably. Sector specific
products like Construction Equipment loan, Medical Equipment loan have
been introduced with pricing matrix and scoring models. Cluster specific
products have been introduced to capture top quartile customers in an
industry. Your Bank has launched a Simplified Cash Credit product on
pilot basis at Chennai & Hyderabad Circles.

(ii) processes:

Your Bank has introduced detailed Standard Operating Procedure (SOP)
for various processes involved in the delivery of Credit to provide a
ready reference to all operating functionaries.

Your Bank has covered key products under loan Origination & loan life
Management Software (lOS & llMS) which focus on capturing of
pre-sanction process of credit portfolio, ensuring quality and uniform
standards of credit dispensation and have robust record and information
retrieval systems.

Under this initiative in FY2016 your Bank has introduced digital
inspection application through Tab & Mobiles which is a process of
digitization of pre- sanction/ post sanction of SME units & collateral
securities capturing location of the property/ place of business.

(iii) delivery:

Your Bank had undertaken project vijay starting in FY2015 to revamp the
delivery model for SME lending in order to drive growth and improve
customer engagement, with following key features.

- Over 1,000 relationship managers deployed for serving SME customers

- Leveraging big data and analytics based lead generation for
customer acquisition

- Improving internal processes and documentation needs to reduce
customer turn-around time by 50%

- Increasing focus on risk mitigated, competitive products; e.g. launch
of new Asset backed loan product, promoting feet finance, e-dFS and
e-VFS products

- Deploying Vijaypath tool for performance monitoring of relationship

Customer engagement has improved significantly with reduced turnaround
time, simplified documentation and assignment of dedicated relationship
managers. Your Bank has been increasingly shifting focus towards risk
mitigated lending.

Supply chain Finance

Leveraging its state of the art technology, your Bank is focusing on
further strengthening its relationship with the corporate world for
their supply chain partners.

during the last fiscal your Bank has entered into 57 new edFS & eVFS tie
ups taking the overall tie ups with industry majors to 193.

There has been a 40% YoY growth in the edFS portfolio as a result of
the new tie-ups.

Credit fow to Micro and

Small enterprises under

cGtmSE & mudra

Your Bank has been a pioneer in supporting MSMEs and for micro and
small (MSE) business. Your Bank is extending collateral free lending up
to Rs.1.00 crore under guarantee of CGTMSE. The cost of guarantee cover
for working capital facilities up to Rs.50 lakh is being borne by your
Bank. Your Bank has a portfolio of Rs.11,030 crore under CGTMSE. It was
able to achieve Rs.12,281 crore disbursement almost 92% of the target of
Rs.13,325 crore disbursement under MUdRA loans set by Govt. of India.

developments Fy2016

project Shikhar was rolled out to gain first mover advantage in the
e-Commerce space. The exponential growth in e-Commerce has thrown open
a world of opportunities for MSMEs. new players have entered the market
space and B2B & B2C space is growing in demand.

Under this project, your Bank is working on various initiatives to
pioneer an ecosystem for lending through partnerships with new business
models. Three SME ecosystems have been identified as focus areas
e-Commerce, taxi aggregators and franchise finance.

(i) e-commerce

Your Bank has developed a specialized offering for startups active in
the e-commerce space. A pioneering innovative product e-Smart SME for
financing merchants selling through e-commerce platforms has been
designed. Tie-ups with leading e-Commerce companies, Snapdeal and
Flipkart, have been established this year. This innovative product
moves away from traditional balance sheet based lending to a cash fow
based lending program. It uses an in-house developed proprietary credit
model based on platform and surrogate data to assess eligibility. The
entire process has been automated – 'at the click of a button' – from
online application, uploading of documents, processing and sanction,
all in less than a minute - first time ever in the history of banks in
India. The product was launched by your Bank's Chairman & CEO of
Snapdeal on 15th January 2016.

(ii) taxi aggregators

Taxi aggregators have been revolutionizing the way Indians commute –
and your Bank has tied up with these aggregators to help individual
drivers buy a car and become mini-entrepreneurs. Under this, your Bank
has tied up with both Ola and Uber India to extend vehicle loans to
drivers and operators associated with these

The seller no longer needs to submit traditional financial statements
like Balance Sheet, P&l or Income tax returns to avail this financing
facility. Your Bank has also developed a digital tool to identify any
early signs of stress through the e-commerce platform data of the

platforms. A digital credit tool has been developed in-house by your
Bank to automate the process and enable instant sanction. The tool was
launched in partnership with Uber on 15th March, 2016 by your Bank's
Chairman & Uber President Asia Pacifc.

Documentation needs have been significantly simplified for enabling
faster loan disbursal process. Under the OlA cabs tie-up launched in
FY2015, over 1,000 loans have been disbursed across 5 centres.

(iii) Franchise Finance

A comprehensive product suite has been designed to cater to the
franchising model that is fast growing in India's retail consumer
segment. Franchise finance along with electronic dealer finance will
provide a comprehensive, competitive solution for large industry

The product suite now offers financing solutions for the franchisee's
initial capex investment, working capital and transaction related
needs. Your Bank is tying up with large, reputed franchisors to extend
this proposition to their new and existing franchisees. These loans
will be risk mitigated through franchisor affiliation, comfort and
repayment facilitation. Continuous sharing of data by franchisor will
enable economic assessment of business model and identification of early
warning signals for stressed franchisees.

Five tie-ups have been launched during the year – Philips, Medplus
Pharmacy, Anytime Fitness, lakme salon and Raymond.

(iv) debit cards & acceptance infrastructure (merchant acquiring

Your Bank realized early the need for doing banking the Smart way, in
its pursuit towards becoming the 'Banker to digital India. Your Bank
has been putting significant efforts to upgrade its technology to the
best in class, on an on-going basis and the capability to offer near
JIT (Just in Time) service delivery environment across its delivery

With over 23 crore State Bank Group debit Cards as on 31st March, 2016,
your Bank continues to lead in debit Card issuance in the country. You
will be glad to know that 20% of the Banked population in India have
their accounts with your Bank, with ~37% of total debit Card
penetration in the country. A concerted effort by your Bank to empower
the customers to enjoy Anytime Anywhere Banking through Debit Card
has propelled this sheer dominance of your Bank in debit card space.
You would be happy to note that your Bank has also improved its market
share in Debit Cards spends from 25.07% (March 15) to 26.29% (March 16)
which is highest amongst the banks as per RBI data.

In sync with the focus of Government of India to create a digital
economy, your Bank has strengthened its debit Card acceptance
infrastructure by giving a vigorous thrust on installation of point of
Sale (poS) terminals, thereby taking the numbers to over 3.02 lakh, up
by 50% over last year with a market share of 21.70% of PoS terminals.
during the FY2016, your Bank has registered a growth of 56% in terms of
number of transactions and 60% in value of transactions. With a view to
move the larger base of Debit Cardholders to PoS terminals as also to
e-Commerce websites, awareness campaigns are being run on a regular
basis. These measures zoomed the debit Card spends over Point of Sale
and e-Commerce for the State Bank Group to ~Rs.41,500 crore for the
FY2016, an increase of 36% from the previous year and taking the market
share to over 26%.

Various innovations like introduction of sbiInTOUCH contactless Debit
Cards, Mumbai Metro Debit Card, among others, aggressive marketing
campaigns and Debit Card awareness programme, have placed your Bank in
the top slot in terms debit Card spends.

In order to go green your Bank is now focusing on paperless mobile
PoS terminals with 30000+ mPoS terminals. during FY2016, Bank has also
launched the Contactless (nFC) PoS terminals with over 30,000 such
terminals already deployed in the field. Acceptance of AMEX Card has
also been enabled on SBI PoS terminals during FY2016. In addition to
offering basic acquiring services on its terminals, your Bank is also
providing Value Added Services such as:

- Cash@POS facility for cash dispensation to debit card holders

- DCC - Dynamic Currency Conversion

- EMI facility

Your Bank has also partnered with various Government initiatives for
providing payment acceptance infrastructure at the Customer Service
Centres (CSCs) across all geographies.

d. rural banking

Your Bank has always believed in the potential of rural India as an
important contributor to India's economic growth and its progress being
integral to ensure a sustainable and balanced development. Your Bank
has endeavored to meet the financial needs of this segment through
several innovative channels, products and services. The Indian rural
market is undergoing a paradigm change with structural shifts in the
economy, rising non-farm incomes, changing consumption preferences and
increasing awareness among the rural consumers. This transformation is
supported by several factors including rapidly rising connectivity,
infrastructure development and emergence of new business opportunities.

Your Bank is serving more than 1.09 crore farmer borrowers under
agriculture segment and is deeply entrenched in rural banking arena.
Always in the forefront in ensuring national priorities, your Bank
surpassed the Agri credit flow target set by Government of India during
FY2016, as in the past, as depicted in the table below.

Exhibit 27: Flow of credit to agriculture trend (Rs,in crore)

year target disbursement % achievement

FY2014 73,500 74,970 102%

FY2015 84,500 86,193 102%

FY2016 89,781 102,423 114%

Smart approach to agri business

Your Bank is in the forefront of technology enablement for Rural-Semi
Urban (RUSU) areas by providing Core Banking Solutions, coupled with
ATMs, Cash deposit Machines, Point of Sale (PoS) machines and Micro
ATMs. during FY2016, your

Bank introduced various technology based solutions and products to make
farmers' lives easier, while at the same time improving the operational
efficiency for managing agriculture loans. Some key initiatives in this
area include:

1. kcc-atm-rupay cards: For

ease and operational convenience, RuPay cards were issued to over 26.77
lakh Kisan Credit Card (KCC) borrowers up to 31st March, 2016. KCC RuPay
Cards work seamlessly with ATMs and PoS machines, enabling farmers to
purchase their day to day farm requirements on 24X7 basis.

2. new products for Farmers: The

products launched during the year include:

- premium kisan Gold card (asset backed agri loan): Aimed at financing
emerging Agri Business entrepreneurs engaged in high-tech farming and
allied activities, the scheme was rolled out, with competitive interest

- tatkal tractor loan: Mortgage free tractor loan, providing 100% of
the cost of the tractor, with no processing charges and with a turn
around time of 48 hours - was launched.

- Stree Shakti tractor loan Scheme: Mortgage free tractor loan for
women as co-borrower with lower interest rates.

3. corporate tie-ups: In order to make agriculture lending more
sustainable and to reduce risk in the portfolio, your Bank is focusing
on supply chain finance through tie-ups.

4. Warehouse receipt Financing:

To avoid distress sale by the farmers and to encourage price discovery,
your Bank has entered into tie-ups with Collateral Managers to offer
finance to farmers against their produce stored in warehouses.

bonding With Farmers

To improve the quality of life of India's rural population and to
achieve total financial inclusion, 'SBI Ka Apna Gaon' Scheme of adopting
the villages was initiated in FY2008. By FY2016, 1,426 villages have
been adopted for their overall development. Your Bank has also been
forming Farmers' Clubs at village level, for fostering continued
relationship with the farming community. Today, the number of such
clubs has reached 10,719. The key initiatives taken in adopted villages
include the construction of community vermi-compost units under clean
village concept; the construction of hygienic toilets; installation of
Solar lighting in the villages; and conducting awareness programmes
through melas and exhibitions.

Financial inclusion

Your Bank has been at the forefront of Financial Inclusion initiatives
in the country. Your Bank is the pioneer in the Business Correspondent
(BC) model, an alternative for providing banking services to cater to
both urban and rural customers, characterized by small value
transactions. The BC model, with over 64,628 Customer Service Points
(CSPs) across the country, provides various products and services such
as savings, term deposits, micro loans, remittances, loan repayments
and micro-pension. Your Bank has successfully leveraged technology for
propagating Financial Inclusion by introducing Internet based Kiosk
Banking, Card based and Cell phone messaging channels.

Under the Pradhan Mantri Jan dhan Yojana (PMJdY), your Bank has been
amongst the most prolific implementers of the programme. Your Bank has
opened 5.32 crore accounts up to 31st March, 2016 and issued 4.21 crore
RuPay debit cards to eligible customers. A substantial number of these
cards were issued in some of the most challenging areas of the country.
The total number of financial inclusion accounts has thus grown from
7.29 crore in FY2015, to 9.28 crore in FY2016. The value of
transactions handled through Business Correspondents has increased by
49% from Rs.38,973 crore in FY2015, to Rs.58,217 crore in FY2016. Bank has
actively participated in SHG- Bank Credit linkage programme since its
inception in 1992. As of 31st March, 2016, your Bank is the market
leader in SHG financing with a credit deployment of Rs.5,495 crore to 3.6
lakh SHGs, 91% of which are women SHGs. Continued focus on the
development of innovative, technology enabled channels for delivering
banking services among the rural populace has resulted in the
successful launch of several new initiatives like Aadhaar Enabled
Payment Systems, automated e-KYC, Immediate Payment Service (IMPS),
Micro ATM rollout, Savings Bank cum Overdraft facility under PMJdY and
direct Benefit Transfer (dBT)/direct Benefit Transfer for lPG (dBTl)

In the years to come, all these initiatives are seeds that will
eventually usher in a cashless society ecosystem, promising great
social benefit.

Hub-and-Spoke model with business correspondent network

Your Bank has mapped 1,03,565 villages to 52,522 rural Customer Service
Points (CSPs) for servicing the customers with asset-liability
products, including accepting credits in loan accounts from customers
residing in remote unbanked areas. These CSPs are linked to a nearby
branch which serves as the support and monitoring point for these CSPs.

Empowering rural youth

To mitigate unemployment and under employment problem among rural youth
in the country, comprehensive, free of cost residential trainings in
personality and skill development are being imparted through Bank's 116
Rural Self Employment Training Institutes (RSETIs). despite some of
these institutes having been located in the socially and geographically
challenged areas, these institutes are playing a vital role in Make in
India and Skill India campaigns. Bank's RSETIs have conducted 12,840
programmes, trained 3,40,688 candidates and 1,60,607 trainees have been
gainfully settled.

Exhibit 28: rural youth candidates trained by rSEtis

Fy2013 Fy2014 Fy2015 Fy2016

160,378 207,419 265,688 340,688

training for debt recovery agents (dras)

To supplement in-house resources for recovery of your Bank's dues, your
Bank is engaging its BCs/CSPs as debt Recovery Agents (dRAs), after
they pass certificate examination on completion of mandatory training,
which is given at Bank's cost in RSETIs. Close to 5,000 BCs/CSPs have
been imparted dRA training during FY2016.

imparting Financial literacy

With the main objective of imparting financial literacy and facilitating
effective use of financial services by the common man, your Bank has set
up 232 Financial literacy Centre's (FlCs). during FY2016, a total of
8,855 financial literacy camps at villages across the country were
conducted by these FlCs.

Exhibit 29: cumulative data on nos. of Financial literacy camps

Fy2013 Fy2014 Fy2015 Fy2016

2723 7913 28879 37734

regional rural banks (rrbs)

Your Bank has sponsored 14 RRBs covering 155 districts in 15 States,
with a network of 3955 branches. Your Bank's investment in equity of 14
RRBs is Rs.479.82 crore and its non-equity investment is Rs.23.62 crore.

All RRBs are on CBS platform. Besides, RRBs have implemented various IT
initiatives such as RTGS, nEFT, RuPay Cards, IMPS, Kiosk Banking,
Aadhar Payment Bridge System, Aadhar Enabled Payment System, National
Automated Clearing House, Cheque Truncation System etc. which have been
implemented in Public Sector Banks. Under PMJdY, RRBs have opened 68.68
lakh accounts and have covered 29.85 lakh account holders under Prime
Minister Suraksha Bima Yojna.


Banking system is witnessing new challenges in its traditional business
domain from new digitally enabled entrants. Payment systems, of late,
is the most sought after aspect of banking business on account of the
growing penetration of smart phones, e-commerce and launch of a good
number of innovative products/mobile apps. Payments Bank and Small
Finance Banks are on the anvil. The competitive scenario is getting
intense and changing rapidly.

State bank aggregator module (Sbiepay)

Your Bank is the first and only Bank to have its own payment aggregator
services. As a Bank and a Payment aggregator, SBIePay has already
partnered with 41 banks for providing seamless Internet Banking options
to the customers. PayPal has also been added as a new channel in

With its focus on C2G and B2G SBIePay is well positioned to support the
Govt. on its cash less and less cash society aspirations through
digital India initiatives.

nTRP (non Tax Revenue Portal) of Controller General of Accounts,
enabled by SBIePay for online receipts of all Central Govt. ministries
was launched on 15th February, 2016 by the Honourable Finance Minister.
Sbiepay has already provided its aggregator services to GRAS (Govt.
Receipts and Payments System) of the States of Maharashtra, Rajasthan
and entered into relationship with Assam, Gujarat, and Puducherry State
governments. Indian Railways eProcurement system has identified SBIePay
for their online procurement payments.

PSUs such as HPCl, IOCl & Gail Gas limited are some of the major PSU
clients of SBIePay for lPG refill payments & new connections. SBIePay
aims to be the one stop solution for processing all online Govt.
Receipts and a leading player in C2G and B2G segment.

Enterprise Wide loyalty programme: State bank rewardz

In line with our vision statement to keep Customer first during the FY
2016, your Bank launched Enterprise Wide loyalty Programme-State Bank
Rewardz to reward its customers for the unstinted trust reposed, across
a wide range of services availed by them. Your Bank envisions
strengthening its relationship with its customers by recognizing their
continued faith and long term association with your Bank.

Now, customers earn reward points for their various transactions like
payment through Debit Cards, Internet Banking transactions, usage of
Mobile Banking, Personal Banking, demat Accounts, Agri Business, Home
loans and Current Accounts. These reward points can be redeemed for a
plethora of redemption options such as SBI Gift Card, Merchandise,
recharging of phone or D2H, booking tickets for Movies, Buses and

The most important feature of the Programme is the ease of use through
a Mobile App- State Bank Rewardz which can be downloaded from the
Google Play Store. To further improve customer experience, the reward
points can be redeemed at select Merchant partner outlets as well.


Being accredited banker to the major Central Government Ministries &
departments and most State Governments, your Bank continues to retain
its position as the market leader in Government Business. In
continuation of its service tradition, your bank pioneered in
developing customized e-solutions for The Government of India and
several State Governments, thereby facilitating the Central / State
Governments to migrate their transactions to the online mode which has
brought in more efficiency and transparency in the system. More than 66%
of your Bank's Government Business has been migrated to e-mode, which
has resulted in substantial reduction in the average settlement period,
as also in the reduction of cash transactions.

Exhibit 30: Government turnover Government commission

(RS,in crore)

Fy2015 Fy2016

Turnover 3555835 3993377

Commission 1968 2095

With a view to facilitate e-Governance & bringing in more efficiency,
following new initiatives were taken during the year:

Rs, pension payments: Your Bank has been administering pension payment
to more than 40 lakh pensioners through its 14 CPPCs. This year your
Bank successfully disbursed first tranche of OROP arrears to 8.04 lakh
defense pensioners including family & Galantry award winning pensioners
for which your bank has been appreciated from all quarters.

- migration of Salary/ vendor payments to cmp: Migrating Salary/ Vendor
payments of Rajya Sabha, Railways, State Govt. of Assam , Manipur &
Mizoram to CMP platformhas brought in more efficiency & standardization
in handling Govt. payments.

- online Fee collection: Your Bank facilitated online collection of
fee of major recruitment examinations & other dues for Govts. of UP,
Jharkand, Tamil nadu, CBSE , Prasaar Bharti etc.

- non tax receipt portal of Govt. of india: SBI e-Pay has been
integrated with nTRP Portal for online collection of all non tax
revenue of Govt. of India.

- e-tendering Solutions: have been provided to Konkan Railways &
delhi Metro Rail Corporation.

- e-Governance in State

Governments: 29 e-initiatives launched for various State Govts.

- visa on arrival: this facility was enabled for Japanese nationals
at 6 centres & e-Tourist Visa facility which started last year with 44
countries has since been extended to 150 countries. Visa fee is being
collected through SBI e-pay.

- Direct Benefit Transfer for LPG: Your Bank is the sole banker to
process lPG subsidy. during the year, Rs.21769 crore were disbursed
through 112.29 crore transactions.

- Other Direct Benefit Transfers: Your Bank has processed 12.94 crore
subsidy transactions involving Rs.34797 crore during FY2015-16.

- Small Savings Schemes: Your Bank services more than 60 lakh PPF,
3.85 lakh Sukanya Samriddhi accounts (Highest among authorized Banks)
More than 5 lakh new PPF accounts have been opened during FY2015-16.


Your Bank's Insurance cell was created at the Corporate Centre for
procuring Insurance Policies for your Bank's own assets at competitive
prices with better terms and coverage for enhanced efficacy in claim
settlements. Your Bank has also complied with RBI's instruction on
Unique Customer Identification Code (UCIC) to the extent of 99.50%. In
terms of operating cost reduction, your Bank has taken up the
rationalization of Currency Chests, under which 105 Currency Chests
(CC) have been closed during FY2016, saving a recurring cost of
approximately Rs.50 crore per annum.

Your Bank's CPCs Redesign & Other Projects (erstwhile BPR Projects) has
been continuously working on the process changes and redesigns,
including risk assessment and challenges posed for increasing the
efficiency and delivery of your Bank's various products and services.

To attain considerable Cost Control and reduction, your Bank has
further centralized and rationalized its purchases of registers and
forms, and the introduction of Outsourcing Model for Stationary
Management. To get the optimum advantage of bulk ordering in terms of
reduced wastage and enhanced efficiency, a switch- over from in-house
supply of stationery items to an outsourcing model of web based
stationery management is being implemented. This initiative is expected
to help in the reduction of costs presently being incurred on hiring of
premises, management of storage, obsolescence of stationery items,
manpower and transportation costs. Pilot rollout of the project was
launched in two Circles in March 2016.

For digitization and easy retrieval of Account Opening Forms (AOFs), an
Electronic data Management System (EdMS) has been introduced during the
year. The digitization of AOFs aims to archive the AOFs electronically
and retrieve the images at all 14 lCPCs. This is expected to be
completed during the FY2016-17 on a Pan India basis.

In order to reduce the printing cost of cheque books and establishment
cost of LCPCs, further centralization of cheque book printing is in the
process of rollout and has been implemented for 8 Circles at 2 centre's
till date. The entire process has been carried out in a secure
environment at your Bank's Base Security Printer, replacing the present
process which involved an extra layer with two printers.

As a result of the above initiatives, your Bank continues to efficiently
manage a continuously increasing volume of customer transactions by
taking advantage of standardization, skill building and economies of


The Wholesale Banking business at your Bank focuses on servicing
corporate customers through customized financial solutions for enabling
business in India and key overseas geographies, specializes in
analyzing business and financial requirements of its clients and
providing solutions through various products, such as working capital
finance, export finance, trade, transaction & commercial banking and
rupee and foreign currency term loans. The wholesale banking ecosystem
at your Bank comprises several teams focused on specific areas to
facilitate specialization and customized product offerings to your
Bank's clients. during FY2016, the Wholesale Banking business was
focused on proactive monitoring of the portfolio given the challenging
economic environment, while continuing to grow its commercial and
transaction banking business. Going forward, your Bank will look at
sourcing new businesses and generating new income streams, while
continuing to offer comprehensive financial solutions to corporate
clients with a focus on profitability and risk mitigation.


The Corporate Accounts Group (CAG) is the dedicated vertical handling
the large credit portfolio of your Bank. CAG has 8 Offices in 6
regional centers viz. Mumbai, delhi, Chennai, Kolkata, Hyderabad and
Ahmadabad. The business model of CAG is centered on the Relationship
Management concept and each client is mapped to a Relationship Manager
who leads a cross-functional Client Service Team. The Relationship
strategy is anchored on delivering integrated and comprehensive
financial solutions to clients, through structured products, within a
strict Turn- Around-Time. The principal objective of the strategy is to
make your Bank the first choice of top Corporate.

Exhibit 31: business performance of caG ( crore.)

Facility mar-15 mar-16 ytd Growth

Fund Based +
non-fund based 4,56,138 5,27,970 16%

Fund Based 2,71,778 3,29,026 21%

Fund Based outstanding of the CAG constitutes 22% of total credit
portfolio of your Bank. Around 85% of CAG exposure is to Corporate
with ratings of Investment Grade and above, while the distribution to a
variety of sectors is well balanced.

CAG handles about 58% of the domestic fore business of your Bank.
during the year, the group handled several high value deals of top
clients from both private and public sectors.

Your Bank has continuously been working on promoting technology
initiatives for operational convenience as also to minimize operational
risk. Such initiatives include mobile versions of Corporate Internet
Banking i.e. State Bank Anywhere – Corporate, which allow corporate
users to initiate and authorize transactions through their mobile. In
addition e-trade and various payment solutions are now available.

during the year your Bank has also stabilized the llMS (loan lifecycle
Management System) platform, a web based portal for assessing credit
risk in loan proposals including internal credit rating exercise. The
platform will also be used for other ancillary activities related to
credit management.

Vendor) Finance. The business of the Unit has clocked significant
increase during last three years.

a. cash management product (cmp)

The whole spectrum of Cash Management Service encompassing Collections,
Payments and liquidity Management are provided by way of cheque and
cash collection (including doorstep Banking), Collection for Public
Issues (IPOs/Bonds), e-Collection (including the facility of virtual
account number), e-Payments, management of Mandates and other paper
instruments like dividend Warrants, Refund and Interest Warrants,
Corporate Cheque payable at Par (CCPAP) and Multi- city Cheques. While
collection facilities are provided through 'SBI F.A.S.T' (Funds
Available in Shortest Time) to Corporate and Institutional Customers
through a network of 1854 authorized branches across the country by
means of a technology driven platform, our entire network of over 16400
branches is also made available to large Mid- Corporates, SMEs, nBFCs,
Institutional Customers, Mutual Funds and Insurance Companies for
Collections through certain specially designed products such as 'Easy
Collect', 'Powerjyoti – Pre Upload', etc. Your Bank offers various
e-Payment products through a secure process of dedicated portal with
Host-to-Host facility. The business has been growing over last three


Transaction Banking Unit (TBU) offers a range of products to
Corporate, Government departments and Financial Institutions
comprising of products to facilitate Cash Management Products and Trade
Finance and Supply Chain (dealer/ CMP Centre is the 'Sole Refund
Banker' for Central Board for direct Taxes (CBdT). CMP Centre has also
brought about integration of payment systems of Ministry of Defence,
Civil Ministries under UMEA, a number of State Governments with Core

Banking Infrastructure of your Bank by providing Centralized e-Payment
Solutions enabling Government Departments to achieve their objectives
under National e-Governance Project (neGP). Centralized e-Payment for
Railways commenced from CMP with delhi division of northern Railways.
doorstep cash and cheque pick-up facility for Railway Station under the
scheme 'Rail Shakti' Project has also been extended to Indian Railways.
CMP has also started non-tax collection for Government of India through
Bharatkosh Portal, hosted by Controller General of Accounts.

b. trade Finance

(a) e-trade Sbi: Your Bank has established an excellent technology and
operation infrastructure for its Trade Finance business. e-Trade SBI, a
web-based portal, which was launched by your 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 31st March, 2016, 2250 Corporates are
registered under e-Trade SBI.

(b) e-vFS (Electronic vendor Financing Scheme)

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. As on 31st March, 2016,
182 Industry Majors (IMs) with 3867 vendors and 12993 dealers across
the country have been migrated to the electronic e-VFS/ e-dFS platform,
a growth of 115% and 64%respectively.

c. Financial institutions business unit

Financial Institutions Business Unit is a dedicated vertical created
for capturing potential business opportunities from financial
institutions viz. Banks, Mutual Funds, Insurance Companies, Brokerage
frms and nBFCs. In addition to facilitating their Cash Management by
making available various Collection and Payment products , Insurance
Cos. have been extended 'Easy Collect' product for collection of
premium over the counter at all Branches and Mutual Funds have been
provided with 'Intra- day limit' facility for facilitating their
redemption payments. Capital Market Branch (CMB), a Specialized Branch
at Mumbai caters to the Capital Market business clients and brokers.
during FY2016, CMB has handled 119 Bonds/ FPO/ IPOs issues and
mobilised Rs.29,307 crore (CASA) as Bankers to an Issue (BTI). during
FY2016, CMB has received recognition as one of BSE's top 3 performers
(for the year FY2015) in the Primary Market Segment (debt Public Issue
Bids-Banks) and Primary Market Segment (Equity –IPO/FPO Bids – Banks)


The project finance environment continued to remain challenging during
FY2016 largely due to a slowdown in new project commitments by
corporate, coupled with implementation and operational issues
affecting ongoing projects.

Your Bank's special business unit Project Finance & leasing (PFSBU)
deals with the appraisal and arrangement of funds for large projects in
infrastructure sectors such as power, telecom, roads, ports and
airports. It also covers 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 and regulatory framework for financing
infrastructure, inputs are also provided to various ministries of
Government of India, Niti Ayog and the RBI with respect to lenders'
views on new policies, Model Concession Agreements and broader issues
being faced in infrastructure financing.

Exhibit 33: project Finance & leasing business performance

( crore)

Fy2015 Fy2016

Project Cost 167551 77227

Project Debt 112981 59094

Sanctioned 19718 18125


Syndication 8845 18082


As on 31st March, 2016, the portfolio of infrastructure projects under
implementation and control with PFSBU include Power projects with
aggregate capacity of 43,536.50 MW; Telecom Projects serving more than
190 million subscribers; Road projects covering more than 5000 kms;
Metro Project in Hyderabad besides a host of projects in steel, cement,
Urban Infra, etc. during FY2016, fund based and non-fund based exposure
aggregating Rs.7,249 crore (Rs.12,090 crore in FY2015) were disbursed to
such projects.


With a view to focusing on midsize units having credit requirement for
limit of above Rs.50 crore and up to Rs.500 crore (Fund based and non-Fund
based), your Bank's Mid Corporate Group (MCG) operates through its 14
Regional Offices across Ahmadabad, Bangalore, Chandigarh, Chennai (2),
Hyderabad, Indore, Kolkata (2), Mumbai (2), new delhi (2) and Pune, and
has 54 branches as on 31st March, 2016 with 20 branches in metro
centers and 34 branches in other urban centres.

mcG loan portfolio (non-Food domestic)

( crore)

Fy2015 Fy2016

2,27,756 2,32,638

During the year under review, MCG has grown in investment grade assets
mainly in, Textiles, nBFC, CRE, Chemicals and Wholesale industries.

The Group continues to partner in growth of its customers in India to
expand their activities and provides them support for acquiring assets
or companies overseas, including by way of loans to overseas
subsidiaries and JVs (backed by letters of Comfort or Stand-by letters
of Credit).


The International Operations of your Bank are guided by the overarching
principle of supporting global Indian corporate and Indian Diaspora
spread across geographies. In addition, your Bank also targets the
local populace in line with its vision to become a truly International


The number of foreign offices of your Bank is currently 198. Spread
across 37 countries in all the continents, your Bank offices include 55
Branches, 20 other offices, 7 Representative Offices and additional 113
offices of 8 Foreign Subsidiaries. As such, diversity in operating
structures is a cornerstone of your Bank's expansion activity. during
FY2016, your Bank has opened 2 new branches in United Kingdom, 4 Indian
Visa Application Centre's in Bangladesh and upgraded Seoul
Representative Office into a full fudged branch. Your Bank commenced its
Representative Office functions in Sao Paulo, Brazil through its
subsidiary State Bank of India Services limited. nepal SBI Bank
limited, a subsidiary of SBI has opened 3 branches and 1 extension
counter during this period. Dusseldorf Marketing Office of SBI,
Bakersfield Branch of SBI (California) and Abbotsford Branch of SBI
(Canada) Bank were closed during the year.

Exhibit 34: Break-up of foreign offices (No.)

Fy2015 Offices Offices Fy2016
opened during closed during
the year the year

/Sub-Offices / 69 7 1 75
Other Offices

/ JV (7) (1) - (8)

Offices of
/JV 110 5 2 113

Offices 8 - 1* 7

Associates /
Managed 4 0 1 3
exchange Cos

total 191 12 5 198

* Seoul Rep Office in South Korea was upgraded to Branch.

The Group has dedicated verticals in Credit and NPA management,
Compliance, Risk, Treasury, Retail and Overseas Subsidiaries, Human
Resources, Operations, General Banking, and Strategy to support the
extensive international operations of your Bank. International Banking
Group supports your Bank as well as its major stakeholders through its
various business functions as detailed below:


1. merchant banking

Your Bank facilitates raising debt in Foreign Currency by Indian
corporate by way of External Commercial Borrowings through syndicated
deals in conjunction with other Indian and Foreign Banks, and also
through bilateral arrangements.


- Premier Mandated Lead Arranger and Book Runner during the FY2016

- 9 Syndications aggregating US$ 2.674 billion

- 14 Bilateral loans aggregating US$ 3.510 billion to Indian
corporate on a bilateral basis

2. ibG-credit

IBG-Credit is responsible for building a quality loans & advances
portfolio in the overseas branches. This is achieved through a range of
loan products. The loan products inter alia, include bilateral &
syndicated loans.


- Introduction of Loan Lifecycle Management System across Foreign
Offices for prompt monitoring and better control and supervision of loan

- Creation of Japan desk at New Delhi to promote Indo-Japanese

3. ibG retail & remittances

Through specialized remittance products your Bank enables a 'window to
India' for nRIs residing in different corners of the world. In some
countries with considerable Indian diaspora, your Bank also engages in
retail banking activities for both Indian as well as local customers.


Rs, Bank launched USd Travel Card at its Maldives Operations.

4. Financial institutions


The Group facilitates linkages of your Bank with international
stakeholders viz Correspondent Banks, Foreign Govt. Agencies and
developmental Financial Institutions, International Chamber of Commerce
etc. on the one side and facilitates synergy between IBG and other
Business Verticals such as Mid Corporate Group, Corporate Banking
Group, Global Markets etc. on the other side.


- Redesigning of Financial

Institutions Group to consolidate the Correspondent Relationship job,
which was earlier being handled partly by Global Market Unit Kolkata
(GMUK). Rs, Relationship Management Concept for Banks & Financial
Institutions has been introduced in line with our strategy to adopt the
best international practices. Rs, SBI is in the process of acquiring a
CRM solution to have a 360° view of the relationship with Banks/FIs

5. Global trade department

Global Trade department (GTd) facilitates and supports your Bank's
Foreign Offices in maintaining a vibrant Trade Finance portfolio. GTd
formulates policies and innovates new products as per changing
regulatory norms and market demands. GTd takes lead in introduction of
new technologies to improve service quality in Trade Product offerings
viz., letters of Credit, Bank Guarantee and Trade remittances, plays an
important role in synergizing domestic and Foreign offices for
maximizing returns.


- Trade Finance assets outstanding as on 31st March, 2016 was US$
14.614 billion, accounting for 36.29% of IBG's net Customer Credit.
non-fund based business done by our Foreign Offices during FY2016 was
US$ 10.377 billion.

- To combat Trade Based Money Laundering, rolled out an additional
screening solution across all Trade Finance intensive Foreign Offices.

- State-of-the-art Trade Finance solution acquired during FY2016.
Pilot Country China and Maldives since implemented and a complete
rollout across all countries expected by December 2016.

- SBI has been adjudged as The Best Trade Finance Bank-India by
Global Finance Magazine for the fourth time in a row in January 2016.

6. Global link Services

Global link Services (GlS), a specialized outfit, caters to centralized
processing of Export Bills collection, Cheque collection and online
inward remittances.


- Tie-up with 31 Exchange Companies and seven Banks in Middle- East
Countries for channelizing inward remittances through your Bank.

- during FY2016, GlS (on behalf of domestic branches) handled 67,577
export bills and 65,619 foreign currency cheque collections aggregating
to US$ 14.39 billion.

- during FY2016, GlS handled 99,08,361 online inward remittance
transactions amounting to US$ 6.69 billion received globally.

7. international banking - domestic

International Banking - domestic (IBd) is a new department under FIG,
which is a single point of contact for all the Foreign Offices as well
as Correspondent Banks for all matters relating to domestic IB
business. IBd is also responsible for monitoring timely submission of
all RBI returns and FEMA compliance.

8. regulators

Your Bank is committed to the policy of zero tolerance of
non-compliance with regulatory guidelines in all its overseas
operations. Regulatory concerns identified by regulators/auditors are
addressed on priority basis. Status of remediation is placed before the
Audit Committee of the Board.

Your Bank has adopted an Independent Risk Governance Structure covering
domestic and international operations. A country Risk Management
Policy in tune with RBI guidelines is in place. Country-wise and
Bank-wise exposure

limits are monitored and reviewed on regular basis.

9. it initiatives

As a truly digital Bank, your Bank has taken a holistic approach to
innovate processes to capture and convert data into a simple virtual
organization that appears ubiquitous to every customer, offering
tailored products to the likes, needs and preferences.

The initiatives taken at Overseas Offices are:

Rs, Your Bank completed its multi- country migration from Finale 7.6
to Finale 10.2 in 24 countries, which will support a wide range of
APIs (Application Programming Interface), wealth management and
enhanced mobile banking solution.

- Trade Finance Solution- e-Trade from Misys Plc. (UK) was launched
in China and Maldives enabling customer's interface with online 24 X7
portal for all Trade Finance requirements at Foreign Offices

- Anti-Money Laundering solution (AMlOCK) implemented across all
geographies which automated processes through digital alerts. ACE
Pelican software has integrated/ automated Watch-list Screening to
optimize KYC norms.

- Bank implemented a predictive tool (FinAssure) covering all 24
geographies which monitors performance of all critical applications,
networks and infrastructure to dynamically manage unforeseen peak

- The much admired onlinesbi (Internet banking solution) extended to
two more geographies viz. Bahrain and Botswana. loyalty programme

debit card usage and Remittance through InB was launched in Singapore
to promote digital stickiness and cashless transactions.

- To provide best of security, comfort and confidence to customers,
Bank replaced all magnetic stripe cards with EMV cum Magnetic Stripe
Cards. Advanced Anti Skimming devices and terminal security, SMS
alerts, Out of zone concepts and PIn based debit card authorization
have been implemented in all geographies.

Bank's digital Banking strategy is continuously reworking to initiate
various technologies such as Internet of Everything, Open Banking to
enhance the choice, utility and experience, Mobility and Wearable. Your
Bank has initiated:

- Enterprise Project Management tool where every IT project is

- Bank level CRM solution to improve deep understanding of customer
needs and behavior, requiring very little remote support.

- Big data analytics to help deliver products on customer preferences
and tracking customer stickiness for successful customer retention.

- Bank has begun using Private Cloud selectively and has plan for
document Management Solution to capture its records digitally.

- Generation of regulatory and other reports directly from core data
under AdF (Automatic data fow) for International Banking Statistics
(IBS), Bank Exposure and Country Exposure


Management of Non Performing Assets (nPAs) is one of the biggest
challenges facing the Banking sector today. Increasing NPAs adversely
impacts the bottom line of banks. Banks cannot book income on such
assets and they have to make provisions as per IRAC norms of RBI.

Rising nPA levels and fresh slippages across sectors can be attributed
to the following factors:

- Reduced market confidence due to the slowdown in the global economy;
the negative spill over's from global financial markets; and the less
than adequate pick up in domestic growth and declining exports.

- Stalling of projects due to infrastructure bottlenecks, delays in
obtaining Govt. approvals, problems in land acquisition and supply side

- Cancellation of coal blocks and the limited off-take of power by
Discoms (Power distribution Companies) given their reducing purchasing

- Labour laws constraints and the Stress in important sectors such as
Textiles, Power, Sugar, Steel and Aviation.

- Delay in realization of receivables due to subdued demand.

- Delay in the resolution of NPAs through legal proceedings.

Consequent upon the Asset Quality Review (AQR) exercise conducted by
RBI, profits of your Bank reduced considerably on account of higher
provisioning. With the economic recovery prospects appearing weak in
the short term, the stress faced by the Banking sector is likely to
continue for a few more quarters.

Exhibit 35: the movement of npas and recovery in Written-off accounts

( crore)

Fy2013 Fy2014 Fy2015 Fy2016

Gross NPA 51,189 61,605 56,725 98,173

Gross nPA% 4.75% 4.95% 4.25% 6.50%

net nPA% 2.1% 2.57% 2.12% 3.81%

Fresh Slippages 31,993 41,516 29,444 64,198

Cash Recoveries /
Up-gradations 14,885 17,924 13,011 6,985

Write-Offs 5,594 13,176 21,313 15,763

Recoveries in
Written-off 1,066 1,543 2,359 2,859


As part of focus on resolution / recoveries of nPAs, Stressed Assets
Management Group (SAMG) continues to work as a dedicated and
specialized vertical for efficient resolution of high value nPAs. It is
headed by a deputy Managing director with two Chief General Managers
overseeing the entire effort. With five Regional Offices, each headed by
a General Manager, a General Manager AUCA exclusively for management
and resolution of Advances Under Collection Account (AUCA) and a
General Manager S&R & CdR for handling Sale to ARC and evaluating
viable CdR proposals, SAMG has turned into a centre of excellence in
the NPA resolution effort of your Bank. As on March 2016, SAMG has 19
Stressed Assets Management Branches (SAMBs) and 44 Stressed Assets
Recovery Branches (SARBs) across the country. Besides initiating hard
recovery measures, SAMG introduced certain innovative methods and thus
gave first mover advantage to your Bank in areas like arranging Mega
e-Auction of large number of properties on Pan-India basis, initiation
of criminal actions, identification of un-encumbered properties of the
borrowers / guarantors and arranging for attachment of properties
before judgment. The loan resolution week (lRW), a nationwide Bank
Adalat was conducted over a period of one week in May 2015 and all over
nPA borrowers were advised in writing well in advance to come for
negotiated settlement. Besides giving wide publicity through
nationwide advertisement through print and social media, the event was
internally monitored by setting-up war rooms at administrative offices.

Despite making concerted efforts to expedite recovery and reducing
NPAs, your Bank often faces impediments in the form of legal hurdles,
unavailability of strategic investors, lack of buyers for properties
put up for auction, among others. For the various constraints, your
Bank has approached the concerned authorities at appropriate levels and
relevant forums like Gyan Sangam, IBA, among others. despite these
constraints, all actions initiated for resolution are constantly
followed up and strategies are periodically reviewed for expeditious
resolution of nPAs.


The Stressed Assets vertical has taken the following technology

1. litigation Management System (lMS) deals with all the cases that
have been fled for and against your Bank in respect of all loan (nPA/
AUCA) accounts. It enables effective management of existing and new
legal cases, store contact details of Advocates, Valuers, Recovery
Agents etc, and track expenses incurred on them. The monitoring through
lMS system has ensured that all court hearings are attended by our
officials, advocates and hearings outcome also gets recorded

2. loan life-Cycle Management System (llMS) is the online credit
processing software which handles all credit processes, as prescribed
by your Bank, end-to-end. It has been rolled out in all the SAM
Branches and helps in generating dynamic MIS reports, monitoring the
account right from inception,

3. Early Warning System (EWS) is a software that enables early
identification of potential stressed accounts before they become
delinquent so that timely action can be taken preventing their further

4. Electronic Document Management System (EdMS) is an electronic
depository of important documents, transactions, audit trails,
accounting reports, workfow processes, compliance documents, etc. It
enables secure, single point storage and timely & efficient retrieval of

5. The nPA1 PORTAl enables the monitoring of recovery by the Stressed
Asset Branches on daily basis and dissemination of comparative recovery
position of each branch amongst the entire field force. It also provides
a single point repository of standardized information on nPA / AUCA
accounts and their movements.

action plan For MANAGING NPAS

Your Bank has adopted a twofold strategy for controlling fresh
accretion and resolution of existing nPAs.

a. controlling Fresh accretion to npas:

1. Early diagnosis of the problems and analysis of the reasons for
irregularity, with appropriate strategies for time bound action to
prevent slippage as nPA.

2. Industry wise exposure limits have been set to diversify profle and
minimize risk.

3. loan portfolio is monitored on an ongoing basis.

4. Account Tracking Centres have been set up to prevent accounts
slipping into nPA category.

5. A system of Tele-calling/ personal contact/ SMS alert/ sending
notices etc. is being followed on default of overdue installments /
irregularity in accounts.

b. improving resolution of npas:

1. In cases where soft recovery measures do not fructify, legal action
is initiated like action under SARFAESI, Filing suits in debt Recovery
Tribunals and other Courts. depending on the merits of the case,
recourse to higher courts like High Court, Supreme Court, etc. is also

2. Involving Business Correspondents, Business Facilitators and Self
Help Groups in recovery of Agricultural nPAs.

3. Arranging Bank Adalat and actively participating in lok Adalats for

4. nodal Officers monitor dRT Cases and liaise closely with dRT
officials. lawyers' meets are conducted and the performance of
advocates is constantly monitored to expedite dRT process.

5. ClOs / law Officers / dGMs / AGMs attend court cases to personally
monitor advocates performance. It also signals a strong intent of your
Bank towards battling out the cases while making last mile recovery

6. Identifying Companies and promoters as Willful defaulters and
arranging for display of their names on the websites of Credit
Information Companies such as CIBIl, Equifax, CRIF Highmark, Experian.

7. Review of nPAs at various levels is done at regular intervals.

8. BIFR cases are closely followed up.

9. E-auction has been introduced for increased transparency and better
price realization.

10. Sale to ARCs is also explored in select cases.

11. Identifying and engaging with strategic investors for takeover of
stressed assets. Strategic debt Restructuring (SdR) option is also
explored in select viable cases as per RBI guidelines.

12. Entering into One-Time Settlements with borrowers.

13. Using Resolution Agents to take possession of properties mortgaged
to your Bank and arranging for their auction.

14. Considering debt Asset swaps in some cases.

15. Engaging investigation agencies to trace out unencumbered assets
of promoters and guarantors and obtaining attachment before judgment
over these properties.

16. Publishing photographs of defaulters in newspapers where

17. 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.

18. Your Bank organizes Mega e-Auction every calendar quarter.

19. Properties available for auctions are also showcased in Property
Mall, wherein, space is taken in shopping malls in the prominent
locations, to display pictures/videos of properties being put up for

20. Your Bank is also positively exploring CIBIl's proposal of
carrying out health check on the existing commercial and consumer
portfolio with the aim of improving our Asset quality.

21. AT@M: The web based Assets Tracking & Monitoring (AT@M) software
enables all stake holders to have a common view along with granular
drill down up to account level. It covers monitoring of SMA as well as
Sub Standard accounts in PER, SME and AGl accounts. An SMS is sent to
all customers at Risk Grade I level followed by a reminder by way of an

22. To prevent slippages, your Bank has tied up with GE Capital for
proactively making calls to stressed accounts (SMAs) in Retail segment
and Real Estate sector.

23. Assets Tracking Centre's at Circle level track and monitor probable
NPA accounts (SMAs) in SME and AGRI segments by making calls on the
customers and follow up for recovery.


Your Bank's treasury, has given another creditable performance this
year, despite relatively unfavorable market conditions. Interest
income increased 20.5% YoY in FY2016, while profit from sale of
investments also soared 44.19% YoY to over Rs.4900 crore. Your Bank
maintained its preeminent position in the forex segment, with profit
from forex and derivatives growing above 19.5% in FY2016 from the same
period last year.

Your Bank's Global Markets Group is responsible for managing your
Bank's SlR portfolio, as well as liquidity management which includes
maintenance of CRR and HQlAs for liquidity Coverage Ratio (lCR). Unlike
last year, the tailwind from falling yields was not available this year
for the Bond portfolio. Benchmark 10 year G-Sec was trading at 7.78%
till as late as 28th February, 2016, compared to 7.76% on 31st March,
2015. It was only in the month of March 2016 that yields came down to
close the year at 7.46%, down only 30 basis points in FY2016, compared
to a more than 100 basis points drop in FY2015. Your Bank was still
able to use the temporary dips to book profits in the interest rate
portfolio recording an increase of 49.27% over FY2015.

To improve our portfolio yield and to benefit from the opportunities
available in the Corporate Bonds and Commercial Paper markets, your
Bank made timely investments in select papers during FY2016. In the
area of liquidity management, we continue to save costs through more
efficient management of CRR compared to the industry average.

The equity portfolio faced significant headwinds this year as benchmark
nifty index was down nearly 8.86% in FY2016 despite a sharp recovery in
the month of March. But your Bank continued to beat the benchmark
through well timed entry-exits through the year, recording a profit
growth of 4.59% YoY in FY2016. Further, in order to improve
transparency and risk management, SBI has started placing our equity
market trades through online trade routing system, which allows
monitoring and execution of orders. This system enables us to execute
orders with minimum intervention from brokers which, in turn, helps in
risk mitigation. Majority of the deals / transactions have been
migrated to the online trading System.

The Global Markets Group provides foreign exchange solutions to
customers for managing their currency fows and hedging risks through
options, swaps and forwards. The group also manages FCnR(B) deposit
corpus of your Bank and provides FCnR(B) loans and Export Finance in
foreign currency for PCFC/EBR to the customers. Foreign exchange and
derivatives business continued to contribute handsomely to profits of
your Bank, reporting a 19.5% increase in profits despite the fall in
country's trade volumes.

In continuation of our Endeavour to improve customer experience through
the use of technology, your Bank launched SBI eforex, an online forex
rate booking platform on 18th June, 2015. The platform enables
customers to book forex rates to hedge their exposure in USd, EUR & GBP
with inbuilt limit monitoring mechanism. Apart from booking the rates
for cash, spot and forwards, the platform also enables customers to
view their entire hedging position with your Bank.

As mentioned last year, your Bank has completed the roll-out of
'FX-Out' to all its branches in multiple currencies, which will allow
them to initiate forex remittance at their end without having to route
it through a forex authorized branch. To make it even more convenient,
an internet based Forex outward remittance facility, called remXout,
has been provided through for remittances in USd, EUR
and GBP. Further, to streamline your Bank's large global forex
operations, an integrated Global Back-Office has been set up in Global
Markets' Kolkata Office.

Our Regional Treasury Marketing Units provide the necessary marketing
support to our Fixed Income and Foreign Exchange dealers through
regular interactions with customers. They are well supported by our in
house macro-economic and market research teams and provide customers
with inputs about market developments while helping them choose a mix
of products to suit each customer's specific requirements. This year,
your Bank has formed a new Inter-Bank marketing team and has commenced
dealing with a number of FPI clients to leverage our large debt
portfolio and our strengths in the FX market. Your

Bank has also taken steps to increase the use of IT in its Treasury
Marketing efforts through the implementation of an automated lead
Reporting and Management System.

In the Private Equity / VCF space, the JV set up with Macquarie and IFC
in 2008, to manage the US$ 1.2 billion India-focused PE fund, has
invested approximately 96% of its total capital commitments. The fund
invested in infrastructure assets viz. Telecom Tower, Airport, Thermal
Power, Hydro power and nHAI road assets.

The Oman India Joint Investment Fund (OIJIF), set up in 2010 partnering
with State General Reserve Fund of Oman, has completed its investments
for Fund-I worth US0 million. Moreover, the Fund has made 1 full
exit and 1 partial exit from the investee companies. Based on the
success of Fund-I, both the partners (SBI and SGRF) have decided to
launch Fund-II with a corpus of US$ 300 million. Till date Sponsors
have committed US$ 200 million to Fund-II and fund raising for tying up
the remaining amount is in process. With this, Fund-II is expected to
be launched shortly.

during the year, SBI has committed to invest in the SIdBI-nSCIl (a nSE
subsidiary) promoted Trade Receivables e-discounting System (TRedS). It
is a platform that aims to serve as an exchange to facilitate MSMEs to
convert their receivables to cash before maturity. The proposed
platform will support multi-fnancier bidding for invoices through
market determined rates for factoring the invoices. The platform, once
set up, will provide an opportunity to your Bank to bid for financing
the Bills put up by the customers of other banks/FIs as well as its own
customers on the platform.

Portfolio Management Services increased SBI's AUM by 1.69% YoY to
Rs.3,22,732 crore. SBI PMS has been re-appointed as fund managers for
Employees' Provident Fund Organisation as well as Coal Mines Provident
Fund Organization with highest fund management share of 35%.

In addition to our continuous efforts in making profits, improving
processes and reaching out to customers, your bank has advanced risk
management systems in place. Your Bank's internal auditors have
recognized these traits by awarding the Global Markets Group top scores
in the recently concluded audit exercise.


during FY2016, adequate liquidity was arranged through Syndicated

borrowings, bilateral loans and loan from supranational entities to
replace MTn bonds of about US$ 2.2 billion which matured during the
year. Some of the sources of liquidity at Foreign Offices were:

- Long Term bilateral loans from multilateral agencies

- Medium Term bilateral loans from Correspondent Banks.

- Medium and long Term Syndicated Loans

- Repo arrangement

- lines against Bankers' Acceptance

For FY2016, the international treasury Investment Portfolio stood at
US$ 5,551 million, earning US$ 192 million Interest Income from these
investments. Your Bank also earned divestment Income of US$ 11 million
during the same period.

1. human resource and training

1.1. people are the most valuable asset

Your Bank believes that Human Resources Management is an important
facet of organization's effectiveness. Accordingly, the Bank has been
making constant endeavors to improve the functioning of HR as a
strategic business partner by nurturing its loyal and dedicated
employees who have made significant and lasting contributions towards
achieving your Bank's goals.

Towards this end, your Bank has taken some important measures to meet
the business challenges, which include, recruiting young and highly
qualified candidates in large numbers; improving the working / service
conditions of the employees representing a wide diversity of group
/interests; re-skilling them through training interventions, workshops,
seminars, video-conferencing; assisting in the career development of
the employees by providing a scientific and objective approach to
measure their performance; incentivizing the top performer; putting in
place an organized structure for skill and capability building in
critical positions and by implementing various measures for talent
retention. All these have contributed significantly to generate a
highly satisfying working environment wherein the employees feel happy,
engaged and enthusiastic about their work and take positive action to
further your Bank's business interests and reputation.

Exhibit 38: Sbi's Workforce Strength

category 2013-14 2014-15 2015-16

Officers 80531 78540 80818

Assistants 101648 94455 88606

Sub-staff other 24799 23404 21477

Watch & Ward 15831 16839 16838

total 222809 213238 207739

The leadership has been very proactive in employee engagement which is
critical for your Bank to sustain growth with profit. This has been
borne out by initiation of a host of important initiatives, as detailed
below, during FY2016.

career development System (cdS)

during the FY2016, your Bank has introduced a new system of performance
appraisal (re-named as Career development System) of individual
employees in an objective and transparent manner. The entire system is
IT driven. All the employees of your Bank have been assigned KRAs and
almost 90% of the positions have been made budgetary or measurable. The
system extracts business data required for the KRAs and calculates
scores. All the employees are being judged on the basis of their
performance. These scores provide the input for Promotions and other
Rewards and Recognition.

The system also has provision for capturing the developmental needs of
the individual employees through competency assessment.

manpower planning & recruitment

A scientifc model has been developed to determine the manpower
requirement in branches in order to provide optimal staffing across
various types of branches. To strengthen the human resource pipeline,
160 young graduates from 23 top 'B' schools were recruited as
Management Trainees on short term contract. These Officers will support
the existing efforts of your Bank to augment skills in specialized
area. Bank is also recruiting on lateral basis in certain specialized
positions, such as , Wealth Management Specialists, Risk Management and
Compliance specialist and information technology to enhance in-house

Employee Engagement

Rs, Sabbatical leave: In view that this facility, with its attendant
benefits, has already been provided to women and Single Men employees,
Sabbatical Leave has been extended to Differently Abled employees &
those having differently Abled dependents viz. children and / or

Rs, vacation policy : Vacation Policy has been introduced by making a
stipulation of mandatory availment of leave for ten working days in one
go by the staff members, posted in sensitive positions, in each
financial year. This leave will serve the purpose of increasing
efficiency, productivity and risk mitigation.

Rs, Flexi-time Scheme : Your Bank has introduced fexi-timing / fexi-
hour scheme on a limited scale where the employee is free to select his
/ her own work hours within limits laid by the management, on grounds
of looking after family and health. This facility has been extended as
a welfare measure with the objective of creating an employee friendly
environment and promoting healthy work life balance.

- chummery accommodation

for women employees : Chummery accommodation has been provided to
female Officers up to the grade of Scale V, who are posted in Rural /
Semi-Urban / Urban areas. This is designed to facilitate their
completion of mandatory assignments in a hassle- free environment.

- alertness award: The scope of Alertness Award Scheme has been
enlarged for Recognition & Rewards including cash ranging from Rs.5000/-
to Rs.200000/- for alertness of staff members in prevention / detection /
foiling of frauds and near Miss Events which have operational risk with
potential to cause serious damage.

- Group medical insurance for retired employees: Two separate Group
Medical Insurance Schemes have been made functional to meet the medical
needs of Retired Employees. Policy 'A' will cover existing SBI REMBS
members with enlarged coverage of diseases and mode of treatment, where
premium will be borne by Bank. Policy 'B' will cover future retirees
and non- members of SBI REMBS with eight plans of insurance ranging
from Rs.3 lakh to Rs.25 lakh, where premium will be borne by the members.

Employee productivity


With infusion of new blood by way of recruitment of highly qualified
Gen-Y employees over the last 4~5 years, there has been noticeable
attitudinal change in the employees' customer interaction and
corresponding improvement in services across branches. This has been
amply vindicated by the improvement in productivity indicator by way of
perceptible increase of more than 14.34% in the level of Business per
employee of your Bank from Rs.1234 lakh as on 31st March, 2015 to Rs.1411
lakh as on 31st March, 2016. Moreover, with a view to improving
productivity and strengthening employee engagement through enhancing
job satisfaction and pride in one's own job, clerical cadre employees,
who constitute nearly 43% of the total workforce in your Bank, have
been re-designated as Associates (Customer Support & Sales).

bi-partite Settlement & Wage Settlement

On 25th May, 2015, The Indian Banks Association (IBA) signed an
industry level Bi-partite settlement / Joint note (effective from 1st
november, 2012) with representative Unions, Associations of workmen &
Officers, following which a 15% wage increment was decided to be given
to employees upto the level of General Manager. As part of the
settlement, 2nd and 4th Saturdays have been declared holidays and all
other Saturdays have been declared as full working days, providing much
needed relief to employees with family responsibilities.

representation in Employment

Bank provides reservation to Scheduled Castes, Scheduled Tribes &
Persons with disabilities (PWds) as per GOI directives. In order to
deal with issues relating to reservation policy and effectively redress
the grievances of the SC / ST employees, liaison

Officers have been designated at all local Head Offices of your Bank as
also at the Corporate Centre at Mumbai.

Exhibit 39: Sc/St/pWd representation in Employment

category total Sc St differently abled

OFFICERS 80,818 13,681 5,996 912 (01.13%)

(16.93%) (07.42%)

ASSISTANTS 88,606 14,018 7,898 1,772 (02.00%)

(15.82%) (08.91%)

SUB-STAFF 38,315 99 05 2,648 198 (00.52%)

(25.85%) (06.91%)

total 2,07,739 37,604 16,542 2,882 (01.39%)

(18.10%) (07.96%)

Women in total Workforce

As on 31st March, 2016, the number of women employees in the total
workforce of your Bank is 44,585 (Officers- 12,884, Clerical - 28,944,
Sub-staff -2,757) which constitutes 21.46% of the total staff strength
of 2,07,739.

Sexual Harassment

Your Bank has a zero tolerance towards sexual harassment at workplaces
and has put in place an appropriate mechanism for prevention and
redressal of complaints of sexual harassment at workplace so as to
ensure that women work with dignity and without fear.

during FY2016, 27 Complaints of Sexual Harassment of Women were fled,
of which 23 cases were disposed off during the same period.

industrial relations

Your Bank held regular consultative meetings with the Associations and
the Unions as part of having a constructive dialogue for understanding
and addressing grievances of various categories of employees. These
consultations are carried out at both the Corporate Centre, as well as
at Circles. Various issues raised by the Federations were examined on
their merits and necessary actions were taken for their resolution.


In a quest for becoming an organization which is a great place to work,
our Bank continues a planned, proactive training process for individual
growth and organizational effectiveness. new techniques, and
methodologies are being imported from all corners of the globe to
establish a virtuous circle of teach/learn/teach/learn to enhance
quality, transform employees into knowledge workers so that they can
carry forward our initiatives towards creating customer delight. The
training system functions under the overall supervision and guidance of
the STU. The training apparatus at present consists of five Apex
Training Institutes (ATIs) and 45 State Bank learning Centres. Your
Bank has been able to create a virtual Knowledge university within the
institution, with a capacity of classroom training of 3350 employees
per day in all areas of Banking, Economy, leadership, Ethics,
Marketing, Administration and Soft Skills, in addition to a robust
digital learning system.

principles that drive learning activities:

- A continuous process of learning from on-boarding – to Transition
to Retirement.

- A culture of self-learning in the organization, which is more cost
effective and convenient in the long run, is being promoted.

- A robust e-learning platform to drive effcient e-learning is fully

- Training programmes aligned with current corporate priorities of
the Business Units.

- Constant upgrades of our training content and delivery, learning to
be at par with global best practices being tried.

- In order to rekindle the energy and enthusiasm generated during
Aarohan, our Mass Awareness Programme, an Aarohan Continuum Capsule
has been designed and programmes have been conducted through Visiting
Faculty Scheme at branches.


e-learning: In order to inculcate a culture of self learning amongst
our employees, SBI has developed a robust e-learning platform
Gyanodaya. 600 e-lessons of 50-60 minutes duration, 412 'e-Capsules'
(short duration e-lessons) and 601 'Mobile nuggets' are available on
the portal, besides the Case Studies, Research Projects and
e-publications under the e-library. during the FY2015-16, 28.48 lakh
tests have been passed by the employees, out of 90 lakh attempts.

Harvard Manage Mentor is an online learning, performance support & peer
collaboration platform from the

Harvard University. Our Bank has a tie-up for business content across
44 management topics and is mandatory for Senior Executives, which
leads to Joint Certification between SBI and HMM.

mentoring of branches:

To ensure continued focus on improving and delivering improved customer
service on a consistent basis SBI has initiated Mentoring of branches
and this is more than the traditional understanding of Mentoring. In
your Bank's scheme, top executives of your Bank, deputy General
Managers and above, have been assigned 4 branches each.

the primary objectives

behind branch mentoring are:

- to help branches achieve sustained improvement in customer service.

- to help branches achieve business growth.

- to help the team in realizing their full potential.

During the mentoring process, the mentor, notionally steps away from
his administrative role and looks at these Branches from a
developmental perspective. The mentor also interacts with the customers
of the Branch and enables the branch team to evolve solutions.
Currently there are 724 active mentors covering 2869 branches.

Certification Programme on Credit has been launched for Officers of
Scales I to V to develop adequate credit skills and to keep them
updated at all times. It focusses on the Commercial Credit Skills
required to handle the entire loan life Cycle of Advances.

Your Bank constantly strives to achieve quality standards for its State

learning Centre's (SBlC) in terms of Training Resources, Infrastructure
and Academic Activities. This year your Bank has made tremendous
progress in this endeavour, with the result that, during FY2015, 23
SBlCs were accredited with the ISO 9001:2008 Certification, taking the
total tally to 27 accredited centers out of a total of 45 SBlCs till

training initiatives

To evolve a strategy for raising the Bar and to reduce the gap between
Campus to Corporate, 138 One day Workshops on Soft Skills by External
Finishing Schools / Institutes were arranged for the first time for
newly Recruited Associates. This enabled an exposure to the challenges
and demands of the real world.

With technical knowledge, your Bank's Officers are also being coached to
develop their physical and financial health, so that they can be
contributing citizens. Aided with a strong set of Principles and
Ethics, the training system actively promotes strong values in their
programmes. Your Bank has also started a facebook page for new batch of
Probationary Officers (2015) called SBI STEPUP. This is being used for
both employee engagement and also for building a team spirit amongst
new recruits.

A programme called 'SBI Buddy'- 'SAATHI' has been started to allow
Probationary Officers to clear their doubts related to technical and
administrative activities in the initial days.

During the year, the website of the Strategic Training Unit was
completely revamped to form the epicenter of where all learning
materials are accessible by all Apex Training Institutes and SBlCs in
one place via the Intranet. It was inaugurated by Hon'ble Shri Jayant
Sinha, Minister of State for Finance on the occasion of Gyan Sangam II
at State Bank Academy, Gurgaon.

Your Bank's training footprint is getting inclusive and global. Your
Bank has opened up its training system to other outside institutions
including Public and Private Sector Bank Officers and other Govt
departments. Using video conferencing, the STU has imparted training
sessions on Time Management and Stress Management for Staff members of
some of your Bank's foreign branches.

As part of its role in nation Building, SBI also contributed to the
Sakhshar Bharat / National Literacy Mission, during the year, where the
SBlCs took part in imparting sessions on Financial literacy and
Financial Inclusion in various Colleges, Schools and Government


During the year, an Inclusion Centre for differently Abled Employees
was created. The objective is enabling financial inclusion, training,
empowerment and up gradation of skills of people with different
Abilities in a systematic way.

Your Bank has 722 Visually Impaired (VI) and 276 Hearing Impaired (HI)
Employees along with Orthopedically Challenged staff. 73% of VI / HI
Employees (Other than Sub-Staff) have received training during the year
by partnering with nGOs for this mission.

Helen keller award 2015

due to Specialized Training Initiatives for the VI & HI Employees, your
Bank has been conferred with the Helen Keller Award 2015 presented by
national Centre for Provision of Employment to Persons with
disabilities (nCPEdP) for the Category Role Model Company / nGO /
Institution for its commitment towards promoting equal employments for
people with disabilities.


State Bank of India is a strong proponent of leveraging information
technology to deliver convenience to its customers. Your Bank has been
offering innovative and cutting-edge products to its customers with the
objective of enabling banking transactions at any time and from
anywhere. Your Bank's technology strategy has evolved in tune with the
current consumer trends of social collaboration, mobility, cloud- based
platforms and big data analytics. Digitisation and excellence in
operations has been core to your Bank's strategy in providing
convenience to customers. It has resulted in a reduction in turnaround
time and extended benefits to your Bank's customers.

Your Bank's Core Banking Solution (CBS) environment is based on an
architecture that supports one billion accounts, over 250 million
transactions per 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 systematic and proactive risk identification, assessment,
measurement, monitoring and mitigation of various risks in the IT
vertical has been initiated.

1. atms

new developments in atm

1. PRM: Proactive Risk Management tool has been integrated with ATM
Switches for Fraud Monitoring.

2. RTO Reduction: Recovery Time Objective (RTO), i.e. time taken for
switching over to disaster Recovery site in case of need, for Base 24
Switch was reduced from 180 minutes to 60 minutes by parallelization of
activities and semi-automation of process using scripts.

3. Base 24 ATM Switch Up gradation: Up gradation of ATM Base 24 Switch
has been done (with the procurement and installation of CPUs and HSMs
within the timelines) to enable your Bank to increase the number of
ATMs to the extent of 90000.

4. Chip enabled EMV Card Migration: EMV card migration for all
variants completed on 01.12.2015. 1st Bank to do so in Indian banking
industry against regulatory advisory to complete this exercise by

5. Tele banking registration through ATM has been enabled.

6. Cash transfer from Card to Account through ATM has been introduced.

7. de-hot listing (Unblocking) of ATM Cards through InB has been

8. Green Personal Identification number (PIn)- State Bank debit card
holder has been facilitated with a simpler process of Debit card PIN
generation through various channels like IVR, InB instantaneously.

The project offers several benefits including:

- For Bank - savings of approx. 100 crore in printing and dispatch

- For customer – convenience, less waiting time, particularly
beneficial for nRI customers.

- For Branches – no custody of PIns (risk reduction / mitigation).

- Green Banking - Paperless initiative to considerably reduce carbon
foot print.

- Operational man power reduction could be used for other benefcial
operational analysis.

- Instant Money Transfer (IMT) Card less Withdrawal- A Benefciary
Customer who does not possess card can withdraw cash at ATM after
receiving PIn from the benefactor.

- Quick Cash- Quick Cash facility to the end customer has been
provided. This facility shall allow the customer to withdraw a pre-set
favorite amount every time he visits ATM.

- Display of free transactions - The customer shall be informed about
the number of free transaction left with him on ATM machine.


The Corporate Internet Banking (CInB) is well suited to Small, Medium
and large Corporate. It has also been immensely successful in
establishing traction with Government Treasury & Accounts departments
as well. Online collection of fees/funds for Institutions, Corporate
and Government Departments is being facilitated through Multi Option
Payment System (MOPS), State Bank Collect and merchant- acquisition
through independent aggregators. Internet based solutions also cater to
the e-Tendering, e-Auction and bulk payments related requirements of
the Government / PSUs / large and Medium Corporate.

Some of the new features launched in net Banking in FY2016 are:

- Overdraft against TdR/STdR/e- TdR/e-STdR through

Rs, Registration of PMJJBY & PMSBY through InB (Furthering Govt.

- Mobile number capture / change through InB.

- Resetting of profile password at any SBI Branch (only from home
branch previously).

- Top-Up / recharge through RInB Portal.

- SBI General Insurance Renewal.

- Smart OTP for Retail InB

- Activation of ATM card through InB

- SBI Quick Transfer (Without Adding Beneficiary) in
(Small transfers)

- CInB Online Registration

- CInB SARAl – digital Signature Certificate enabled online payments

- Thomas Cook Recurring deposit - creation of holiday savings account

- SBI Exclusif: Wealth Management - access to Miles portal & video
assist for wealth management customers

- Issuance of debit card through InB

- Online Overdraft creation for diamond and platinum variant CSP
account holders

- Pehla Kadam Pehli Udaan (Allowing minors to create e-TdR / e-STdR /
e-Rd through InB)

3. tab banking

Savings bank account opening

Your Bank has launched Tab Banking services for opening accounts using
Tab in Offline Mode. Staff will complete all account opening formalities
by using tab, including taking photograph, uploading of KYC documents.
Thereafter the account opening details will be loaded in CBS platform
and account number will be advised to customer.

Home and auto loan in-principle approvals

Tab Apps for giving in-principle sanction of Housing loan & Auto loan.
Housing loan / Auto loan sales team visits the customer's place, staff
capture the KYC details, particulars of income, deductions and details
of proposed property on the tab. Based on data furnished and cost of
project, applicant will be advised on approx. housing loan amount and
the EMI amount.

digital inspection application (dia)

Tab Apps for recording the pre-sanction and post-sanction inspections
of the customers has been launched for 7 products. dIA is integrated
with lOS, CBS and HRMS where the customer data is pre-populated and
field staff needs to capture the photographs of borrowers, collateral,
factory, stock etc with the date, time and geo-coordinates. The
inspection reports are automatically mailed to the field staff in their
EMS mail ids. Application also has auto reminders for upcoming
post-sanction inspections, stock and insurance expiry dates.

dia - lite version for mobiles & desktop

The Digital Inspection App Lite version for SME has been launched for
mobile phones. Field Officers can capture the photographs with date,
time and geo-coordinates using the Mobile App and then continue the
data entry for inspection in the desktop site. All features provided
in the tab are available in the desktop site.

4. ForEiGn offices (itFo)

- Finale Core Migration Project: Successfully migrated all 26
countries from Finale version 7.6.1 to latest and powerful version
10.2.13 during FY2016

- E-Trade for Foreign Offices (FO): Successfully launched the separate
and dedicated software platform for trade finance for all FO's during
the FY2016

- Finassure: launched a dedicated proactive monitoring service namely
Finassure for monitoring critical applications of Foreign Offices

- SBI, South Korea: The 194th foreign branch of SBI went live in FY2016

- EOd Automation: launched automated solution for EOd operations for
Foreign Offices in 12 countries

- Anti Money laundering Solution AMlOCK: Successfully rolled out for
all FO's

- Business Continuity Plan (BCP) ISO 22301: Business Continuity Plan
certifed for ISO22301

- Compliance: Proved higher security standards set by local and
foreign regulators

5. paymEnt SyStEm Group

prepaid cards: SBI issues Prepaid Cards in both InR and Foreign
Currency. different variants of InR Prepaid cards such as EzPay cards,
Gift cards, Smart Payout cards, Quick Pay Cards, Imprest Cards,
Achiever Cards etc are issued to individual & corporate customers.
State Bank Foreign Travel Cards are available in eight foreign
currencies namely the Japanese yen, the Canadian dollar, the Australian
dollar, the Saudi riyal, the Singapore dollar, the U.S. dollar, the
Euro and the British pound, providing safety, security and convenience
to overseas travellers. In FY2016, we have issued 27,220 Foreign
Travel cards and approximately 2,01,900 InR prepaid cards.

Funds transfer and Settlement:

Your Bank offers Real Time Gross Settlement (RTGS), national
Electronic Fund Transfer (nEFT) and national Electronic Clearing
Service (nECS) fund transfer facilities for qualifying transactions
at its branches as well as through internet banking. In addition, nEFT
is offered through your Bank's mobile banking services. nEFT and RTGS
continue to be the most cost effective and time efficient modes for
remittance. The volume (number) of outward fund transfers through nEFT
increased by 50.84%, in FY2016 compared to that in FY2015 and increased
by 8.17% during 31st March, 2016. In fiscal 2015 and 2016, there were
187.4 million and 282.7 million nEFT fund transfers, respectively.
Your Bank has established itself as a leader in nEFT, with a market
share of 24.60% as of January 31, 2016 (as per latest data by RBI,
February and March data yet to be published), and RTGS maintained a
market share of 10.54% as of 29th February, 2016 (as per latest data by
RBI, March data yet to be published). nEFT fund transfer transactions
through your Bank's mobile banking service have also increased
significantly in recent years.

6. networking

State Bank Connect is your Bank's secure and robust principal
connectivity platform and is the backbone of its overall technology
infrastructure. The State Bank Connect primary point-to- point links
have recently been migrated to Multi Protocol level Switching (MPlS)
architecture for ensuring higher uptime and dynamic upgrade of

To provide a comfortable bandwidth to all our offices for better
customer service, Bank have embarked on a bulk bandwidth upgrade
project and have so far upgraded bandwidth at 10,235 branches and
expect to cover all branches by December 2016.

7. development channels

project cbS roopantar: Bank have initiated CBS Roopantar, a project
aimed at reducing data entry and steps required to perform transactions
by tellers, with improvement in existing processes, thereby increasing
their efficiency and reducing the overheads both in terms of time and

Standardization of passbook narrations: Narrations printed in passbook
have been standardized for the convenience of customers.

de-duplication of ciFs: On line search facility for duplicate CIFs at
the time of creation of a new CIF has been provided to branches to
prevent duplicate CIFs from being created.

linkage with Sbi mutual Fund:

Facility for collection of Mutual Fund investments in CBS provided, by
linking to Mutual Fund server, for fetching investor details.

Customer confirmation of high-value cheques: 'Fetch' button provided in
the cheque posting screens at Maker level, along with an additional
field for displaying phone/ mobile number, so that the contact numbers
of the drawer of the cheque available in the system can be viewed by
the teller for the purpose of contacting the customer / obtaining
confirmation while paying high value cheques.

Flagging of 'Wealth' customers:

Development completed for creation of CIF level fag to identify
'Wealth' customers, allowing CIF level changes from remote RM centre
and wealth hub for all Wealth fagged accounts.

Flagging of Fraudsters' accounts: Accounts of fraudster will be fagged
as Fraudster's Account and an alert message Care - Suspected
Fraudster will be fashed on such account whenever these accounts are

8. executive support systems

Social media

Subsequent to establishing our presence on external social media sites
by engaging with the young generation customers, we have been ranked
no.1 globally among Top 100 Banks using Social Media by The Financial
Brand in their list of Power 100 Ranks - Banks Q1 2016. We have
adopted an aggressive social media strategy which has strengthened our
foothold in the social space not just in the Indian market but on a
global scale as well. SBI boasts having the highest fan-base on
Facebook across the globe among banks. It also leads the chart on
linkedIn and Pinterest among Indian banks.

According to an article in Economic times, on 9th July, 2015, your Bank
is amongst the most active banks in addressing customer complaints and
queries on social media. It also mentioned that our Bank is the most
active bank on Facebook, with the highest number of posts shared per

SBI's Face book Page which was launched on 7th November, 2013 is today
the most popular page across all Indian Banks with more than 5 million
followers. We have leveraged this platform to promote our latest
products and services and provided responses to the innumerable
comments that we receive on this platform. We are the first bank in
India to have started live broadcasting of important events on Face

Your Bank's YouTube channel leads all Indian banks in terms of
subscriber base, uploaded more than 220 videos that have garnered over
10 million views, indicating appreciation by the digital users.

Your Bank also has a significant presence on Twitter, and Instagram.


Your Bank also runs a vibrant internal social media platform—'SBI
Aspirations' to promote collaboration among its employees for better
productivity, a symbiotic work culture along with providing solutions
to them. In its endeavour to make Bank's employees more innovative,
productive, and knowledgeable,

The platform is also being used by senior functionaries (including the
Chairman) as a medium of direct interaction with all the employees.

9. analytics

Your Bank is using analytics extensively to better understand and serve
the customer by generating actionable insights to generate business and
revenue while at the same time controlling costs. Customer Analytics is
carried out to make key business decisions via market segmentation and
predictive analytics with the objective of enhancing customer revenues
through cross-sell, up-sell and customer retention.

integrated data Strategy, processing and management (idSpm): Our Data
warehouse is state of the art and contains over 200 TB of data, with
400 GB added daily through 50 million transactions. The data is used
across Your Bank for reports and returns monitoring and is provided in
in a graphical and intuitive manner to business users including
interactive and visualization dashboard.

business intelligence: At SBI, Business Intelligence is at the heart of
decision making and also helps optimise risk weighted capital to asset
ratio. It turns data into ultimate value and, is the source of major
reporting and analyses in your Bank. Centralised Project Ganga is the
data cleansing utility of your Bank which has enabled us rectify 97%
errors reported, thereby improving the data quality significantly.

it-budgeting & cost control: Your Bank has automated a large part of
its IT-Budgeting and is ensuring optimal utilization of scarce
resources for efficient management and financial control. The vertical
has also introduced Charge Back Model with a view to further ingrain
ROI in the corporate culture.

10. back office automation

project it- asset management solution (itams): Your Bank has
implemented an IT Asset Management Solution (ITAMS), which is an
important business practice to maintain an accurate inventory,
licensing information, maintenance and protection of hardware &
software assets utilized across the organization.

data centre & dr centre: Availability of IT Infrastructure to support
business operations is a critical aspect of technology adoption. Bank
has built a robust disaster recovery architecture to ensure business
operations in case of non-availability of primary IT infrastructure.
Each IT Application is designed to have an alternative IT
infrastructure arrangement identical to their production environment.
The processes of movement between primary and alternative sites are
tested regularly to ensure the readiness.

project Single Sign on (SSo): Your Bank is leveraging Active directory
Federation Services (AdFS) using the Active directory Services
infrastructure for implementation of Single Sign On (SSO), in a phased
manner. SSO enables the user to have single set of user ID and password
across multiple applications.

project command centre: The Command Centre gives your Bank the
capability to monitor all transactions end-to-end, starting from the
customer engagement, processing by your Bank's IT application and
acknowledgement to the customer on fulfillment of transaction. The
Command Centre is a state of the art setup with 18 lEd display panels
for current use and future requirements.

11. core banking automation

Setting up of alternate disaster recovery Site (Hot Site): In view of
criticality of Core Banking application, your Bank has setup an
Alternate disaster Recovery Site (Hot Site) with all the processing
environment and in closer proximity to production site for resuming the
Core Banking Operations in a short time span of 1 hour.

db layer refresh & all-Flash Storage: We have refreshed the Database
layer of Core banking application with the latest processor Intel chip
9560 Superdome at both primary and dR site. We also migrated the
production environment with all- fish-storage replacing the old
spinning disks. The benefits of introducing new technology of all-fash
storage gave 30% gain in batch jobs; around 40% gain in transaction
response time; and new setup can cater to the business need of
750+million accounts for SBI.

Exhibit 42: list of technology awards received during Fy2016 award

IMC IT Awards 2015 - Analytics

IdRBT Banking Technology Excellence - Electronic Payment Systems (among
Awards FY2015 large Public & Private Sector Banks)

- Managing IT Infrastructure (among large Public and Private Sector

2015 Gartner Financial Services Cool - Most Innovative digital Customer
Business Awards Service Enhancement SBI InTouch

(Winner) - digital Branch

- Most Innovative new digital Product - SBI Quick (Runner Up)

Skoch Smart Technology Awards 2015 - Best Smart Technology 2015 (SSK &

GRC) 2 awards

- Best digital Banking 2015 (SBI digita In-touch Branch)

- Best Financial Inclusion Technology 2015 (Kiosk Banking & direct
Benefit Transfer ) 2 awards

IDC Insights Award - Excellence in Innovation (Quick

Overdraft facility through Internet Banking)

IBA Banking Technology Awards 2016 - Best Financial Inclusion

- Best Risk Management, Fraud and Cyber Security Initiatives

- Best Technology Bank of the Year (Runner-up)

3. riSk manaGEmEnt

a. riSk manaGEmEnt ovErviEW

Your Bank has an evolving and robust risk management model of proven
effectiveness, aligned with regulatory standards and international best
practices, and proportional to the scale and complexity of its
activities. Your Bank is exposed to various risks that are an inherent
part of any banking business. The major risks are credit risk, market
risk, liquidity risk and operational risk which includes IT risk. Your
Bank has policies and procedures in place to measure, assess, monitor
and manage these risks systematically across all its portfolios. Your
Bank is amongst the leaders to undertake implementation of the Advanced
Approaches under Credit, Market and Operational risk. Your Bank has
also undertaken the Enterprise and Group Risk Management Projects which
aim to adopt global best practices. The projects are being implemented
with support from external consultants.

RBI Guidelines on Basel III Capital Regulations have been implemented
and your Bank is adequately capitalised as per the current requirements
under Basel III. 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 identifcation and management of risk at the place of

The various risks across Bank and the SBI Group are monitored and
reviewed through the Executive level committees and the Risk Management
Committee of the Board (RMCB) which meets regularly. Risk Management
Committees at Operational unit and Business unit level are also in

Exhibit 43: risk management Structure

risk management committees

Board of directors

Credit Risk Management Committee (CRMC) Asset Liability Risk Management

Management Committee of the Market Risk

Committee (AlCO) Board (RMCB) Management

Committee (MRMC)

MD Operational Risk

(Compliance & Risk) Management

Committee (ORMC) dMd & CRO

Enterprise and Group

Risk Management CGM (RM)

Committee (EGRMC)

new initiatives in risk management

Your bank has taken several new risk initiatives towards enhancing its
risk management. Some key actions taken include:

Rs, Adoption of an IT platform for credit appraisal process through a
Loan Originating Software/loan lifecycle Management system (lOS/llMS).
This is steadily being augmented to cover the entire credit portfolio,
which are interfaced with CIBIl's and RBI's defaulters list.

Rs, The reporting and MIS capabilities of the lOS/llMS system are being
augmented, in order to allow the monitoring of your Bank's industry/
exposure limit to be on a real time basis.

Rs, An independent, second look is being given on all the sanctions
through an Early Sanction Review for all loans having exposure between
Rs.1.00 crore. and Rs.5 crore., and through the loan Review Mechanism
(lRM) for loans above Rs.5 crore.

Rs, In order to focus on capital conservation and maximization of
return on capital, your Bank has introduced Risk Based Budgeting (RBB).
Reduction in risk and return on Capital is measured based on Return on
Credit Risk Capital (RoCrC). Achievement of the budgeted advances
levels will be subject to achievements under the specified levers. Risk
Adjusted Return on Capital (RAROC) framework has been implemented from
FY2016. Customer level RAROC calculation has also been
digitized. Behavioral models for monitoring and scoring the retail
borrower performance have been developed and hosted on Credit Risk data

Rs, Internal loss data, external loss data, RCSA (Risk and Control
Self- Assessment) KRIs (Key Risk Indicators) and Scenario analysis are
now an integral part of Bank's Operational Risk Management project for
eventual migration to AMA, subject to RBI's final approval.

Rs, Risk Awareness Workshops were conducted across your Bank by the
Risk Management department covering 1.97 lakh employees at the
operating level, to effectively implement risk monitoring and
mitigation practices in the day to day functioning, especially in the
areas of Credit & Operational Risks.

- 1st September was celebrated as Risk Awareness day.

- Your Bank strengthened its internal control environment around
pre-screening and post sanction compliance, through digitization and
centralized monitoring

- Risk culture is being embedded through training of staff at all
levels through e-learning lessons.

- An Independent Risk Advisory is being established to ensure
independent reviews of high value credit proposals.

- Group Risk is being measured through Contagion Risk, Concentration
Risk, Strategic Risk and Reputation Risk Indices.

- data from all source systems (CBS/ MUREX/Finale) have been
integrated to one platform to facilitate capital computation under the
Standardized Measurement Method.

1. credit risk

Credit Risk is defend as the possibility of losses associated with the
diminution in the credit quality of borrowers or counter-parties 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

- Your bank has strong credit appraisal and risk assessment practices
in place for identification, measurement, monitoring and control of the
credit risk exposures. Your Bank uses internal Credit Risk Assessment
Models and score cards for assessing credit risk under different
exposure segments. Internal ratings of your Bank are subject to
comprehensive rating validation framework.

- Your Bank's business units are armed with inputs on the
developments, prospects and risks in the industries/ sectors tracked by
the Industries Study team. The current status and near to medium term
prospects of 37 major industries/sectors and are monitored by this
team. Industry-wide exposure ceilings are worked out on the basis of
the industry prospects and the performance of your Bank's exposures to
the industry concerned.

- Analysis of industry developments is shared with the operating
functionaries by way of Annual Reviews, Quarterly updates, and monthly
snapshots of the industries/ sectors. Research papers are prepared to
assess the impact of major developments e.g. drop in crude oil prices,
devaluation of Yuan, fall in Baltic dry Index, spectrum trading, Ujwal
discom Assurance Yojana (UdAY) among others. A periodical named
'Commodity Watch' was launched this year for internal circulation,
specifically to share developments in the commodity market (Oil, Steel,
Aluminum, Sugar, Cotton, Edible oil) and their possible impact on your
Bank's exposure.

- RBI has allowed your Bank to participate in the parallel run process
for Foundation Internal Ratings Based (FIRB) under the Advanced
Approaches for Credit Risk. The data under parallel run of FIRB is
being submitted to RBI.

- Models for estimation of Probability of default (Pd), loss Given
default (lGd) and Exposure at default (EAd) are hosted in Credit Risk
data mart for computation of IRB capital.

- The monitoring of Prudential Exposure norms for Single and Group
borrowers, Substantial Exposure norms and unsecured Exposures is being
done regularly.

- Bank regularly conducts Stress Test on its Credit portfolio. Stress
Scenarios are regularly updated in line with RBI guidelines, Industry
best practices and changes in macro economic variables.

2. 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

- Your Bank's market risk management consists of identification and
measurement of risks, control measures, monitoring and reporting

- Board approved policies for Market Risk Management, Trading in
Foreign Exchange, derivatives, Interest Rate Securities, Equities,
Mutual Fund and Review of Market Risk limits for Trading Book among
others are in place.

- Market risks are controlled through various risk limits, such as
net Overnight Open Position, Modifed duration, PV01, Stop loss, Upper
Management Action Trigger, Lower Management Action Trigger,
Concentration and Exposure limits.

- Your Bank has Asset class wise risk limits for its trading
portfolio and monitors the same on an ongoing basis.

- Currently, market risk capital is computed under the Standardized
Measurement Method (SMM). Your Bank has submitted letter of Intent to
the Reserve Bank of India for migration to Internal Models Approach
(IMA) under the Advanced Approaches for market risk.

- Value at Risk (VaR) is a tool for monitoring risk in your Bank's
trading portfolio. The VaR methodology is supplemented by conducting
quarterly stress tests of the trading portfolio.

- The VaR and Stressed VaR for market risk are computed on a daily

- Enterprise level VaR is calculated on a daily basis and back
testing is also conducted daily.

3. 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 tenuously review systems and control mechanisms, create
awareness of operational risk throughout your Bank, assign risk
ownership, align risk management activities with business strategy, to
ensure better capital management, to improve quality of Bank's
Services/Products/Processes and ensure compliance with regulatory
requirements, which are the key elements of your Bank's Operational
Risk Management Policy.

- RBI has granted In-Principle approval to your Bank (on a solo basis)
to migrate to AMA (Advanced Measurement Approach) for computation of
operational risk capital charge on Parallel Run basis.

- Policies, manuals and framework documents in line with RBI
guidelines on Operational Risk Management

Framework (ORMF) for eventual migration to AMA are in place.

- For FY2016, Bank on a stand- alone basis, had assigned capital for
Operational Risk as per Basic Indicator Approach (BIA). Capital charge
as per AMA has also been calculated as part of Parallel Run.

4. enterprise risk

Enterprise Risk Management Project aims to put in place a comprehensive
framework to manage various risks. It encompasses Global best practices
like Risk Appetite, Risk Aggregation and Material Risk Assessment.

mitigation measures

As part of your Bank's Vision to transform the role of Risk into a
Strategic function, aligned with Business Objectives, Bank has
initiated the Enterprise Risk Management (ERM) module. Board approved
ERM Policy delineates the roles and responsibilities of various
Committees /Functionaries to manage risks.

Your Bank has a comprehensive Internal Capital Adequacy Assessment
Process (ICAAP) Policy. The Pillar 2 risks, such as liquidity Risk,
Interest Rate Risk in Banking Book (IRRBB), Concentration Risk etc, and
overall Risk Management practices as well as adequacy of Capital under
both normal and stressed conditions are assessed as per the Policy.

5. Group risk

Group Risk Management aims to put in place standardized risk management
processes in Group entities.

mitigation measures

- Policies relating to Group Risk Management, Arms Length and Intra
Group Transactions & Exposures are in place.

- 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 your Bank.

- Monitoring of consolidated Prudential Exposures and Group Risk
components is also being done regularly.

- A quarterly analysis of risk-based parameters for Credit Risk,
Market Risk, Operational Risk and liquidity Risk, among others, is
presented to the Enterprise & Group Risk Management Committee (EGRMC) /
Risk Management Committee of the Board (RMCB).

- 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
where SBI has 20% or more stake and management control , including
Nonbanking entities, carry out the ICAAP exercise and a Group ICAAP
Policy is in place to ensure uniformity.

6. information security


Information Security risk seeks to establish stringent information
security structure to prevent data loss and threats.

mitigation measures

- Your Bank has implemented a robust IT Policy & Information Security
Policy. These policies are in line with international best practices.
They 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 your
Bank's Global IT Centre. SBI is a forerunner in setting up of an
in-house Security Operations Centre (SOC) for 24 x 7 monitoring of
various attacks and threats on its IT infrastructure.

- Bank's SOC is one of the largest in the Global Banking sector as it
covers all 20,000+ strong network of Bank's offices (domestic and
Foreign) and Associate Banks. The SOC has the following attributes:

- Capability of handling 60,000 Events Per Second(EPS) which is
scalable up to 5 lakh EPS

- Visibility over the security threats from within and outside your
Bank and improves Incident Reporting and Management.

- disaster Recovery drills are conducted regularly as part of the
implementation of the Business Continuity Management System (BCMS).
Critical IT Systems of your Bank are compliant with the International
BCMS Standard – ISO 22301:2012.

- The application setups undergo security reviews before launching as
also are reviewed periodically.

b. internal controls

Keeping pace with the rapid digitalization, your Bank has initiated
technology driven intervention in conducting various audits and moving
towards automation in your Bank's audit processes. Some key initiatives
include the following:

- Your Bank's Concurrent Audit System has been redesigned
incorporating fully automated web based platform SBI eTHIC.

- Web based Internal Verification Audit has been introduced replacing
the manual Circle Audit.

- Offsite Transaction Monitoring System(OTMS) to monitor exceptions
observed in transactions.

- Web based loan Review Mechanism to review the sanction process of
loans above Rs.5 crore and Early Sanction Review (ESR) of loan proposals
with exposure of above Rs.50 lakh and up to & including Rs.5 crore have
been introduced.

- Web based Modular Structure which is flexible, scalable and
expandable with enhanced level of automation and more granular risk
assessment is being introduced for Risk Focused Internal Audit from

- SBI also gives a lot of importance to Awareness campaigns for staff
as well as general public. In addition to planning newspaper
advertisements& TV & Radio campaigns, SBI has run focused citizen
awareness campaigns in collaboration with Mumbai Police and navi Mumbai

Your Bank has in-built internal control systems with well-defned
responsibilities at each level. It conducts internal audit through its
Inspection & Management Audit (I&MA) department. Audit Committee of the
Board (ACB) exercises supervision and control over the functioning of 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 Risk Management Process. Your Bank carries out mainly two
streams of audits – Risk Focused Internal Audit (RFIA) and Management
Audit, covering different facets of Internal Audit requirement. Your
Bank's accounting units are subjected to RFIA. Your 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 (Centralized IT establishments & Branches), Home Office Audit
(audit of foreign offices), Internal Verification Audit, Audit of
Outsourced Activities of your Bank and Expenditure Audit (at
administrative offices) and also oversee policy and implementation of
Concurrent Audit (domestic and foreign offices). To verify the level of
rectification of irregularities by branches, audit of compliance at
select branches is also undertaken. during the period FY2016, I & MA
has audited 9,888 domestic branches/BPR entities under the Risk Focused
Internal Audit.

risk Focused internal audit (rFia)

I&MA Department 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 profle
and risk exposures. While audit of Group I branches is administrated by
the Central Audit Unit (CAU) headed by a General Manager, 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.

fema audit

FEMA Audit which is being done as part of RFIA has been made a separate

management audit

Management Audit encompasses Corporate Centre establishments / Circle
local Head Offices / Apex Training Institutions, Associate Banks and
Regional Rural Banks (RRB) sponsored by your Bank. To enhance the
effectiveness of Management Audit, periodicity has been reduced to once
in two years. 50 establishments / administrative offices were audited
under Management Audit During the period FY2016.

credit audit

Credit Audit aims at achieving continuous improvement in the quality of
Commercial Credit portfolio of your Bank through critically examining
individual large commercial loans with exposures of Rs.10 crore 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. during the
period FY2016, during the period FY2016 8,879 accounts were subjected
to on-site Credit Audit.

loan review mechanism


Audit in high value credit area also has an off-site review mechanism
(loan Review Mechanism) of all the pre-sanction and sanction process of
individual advances above Rs.5 crore within 6 months of sanction /
enhancement / renewal.

Early Sanction review (ESr)

Early Sanction Review [ESR] has been introduced in audit system since
September, 2014 to review sanctions of more than Rs.50 lakh up to Rs.5
crore. The objectives of ESR are:

- To capture the critical risks in the proposals sanctioned, at an
early stage and apprise the Controllers of such risks for mitigation
thereof at the earliest.

- Improve the quality of pre-sanction process / sanctions in respect
of exposures falling in this category.

- Improve the quality of sourcing of loan proposals.

- during the period up to 31st March, 2016, a total number of 9650
accounts were reviewed under ESR.

information System audit (iS


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
centralized IT establishments is carried out by a team of qualified
officials/ outside experts. during the period FY2016, IS audits of 99
centralized IT establishments were completed.

Foreign Offices Audit – Home

Office Audit

during the period FY2016, Home Office Audit was carried out at 3
branches, Management Audit at 9 Representative offices / Country Head
Offices and 4 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 your 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. Concurrent Audit System
has been revamped, along with the introduction of a web-based solution,
with external auditors appointed as Concurrent Auditors (External
Chartered Accountant Firms).

Internal Verification Audit

Internal Verification Audit, which was a delegated audit till last year,
has been taken over by I&MA to make it more effective. It covers low
value credit areas, and is conducted between two RFIAs. This enables
audited unit to be better prepared for the RFIA. during the period
FY2016, 9,094 units were audited by the Internal Verification Audit

off-Site transaction

monitoring System (otmS)

Off-Site Transaction Monitoring System (OTMS), a web based solution,
has been introduced to capture deviations and take corrective actions.
Exception data is being generated by Data Warehouse (dW), based on
certain business rules. At Present, 14 types of exceptions are being
monitored and fagged to the branches for verification by them.

legal audit

Legal Audit was rolled out in all the Business Verticals in June, 2014
to cover all loan and Mortgage related documents pertaining to accounts
with aggregate exposure of Rs.5 crore and above. As on 31st March, 2016,
legal Audit was commenced in 8696 eligible accounts and has been
completed in 7997 cases.

audit of outsourced


Bank has outsourced 56 groups of activities to approximately 6014
vendors. I&MA has a policy approved by the Audit Committee of the Board
and audit has been completed in 37 entities covering 12 activities. A
full fudged outsourced audit department headed by a General Manager is
being set up to oversee the audit of outsourced activities of your

4. official language

Your Bank is committed to the implementation of different provisions of
the Annual Programme formulated by the Government of India. We
continued our efforts to use Hindi and other Indian languages in your
Bank. Some of the highlights are given below:

new Website of dept. launched

A new website of Rajbhasha dept. has been developed by our bank's
Rajbhasha & System Officers. This website is launched by our Chairman
recently through video conferencing during All India Rajbhasha Adhikari
Vaarshik Sammelan held at SBIRd, Hyderabad.

'Sugam marathi' etc. books published

In the changed scenario Government of India is expecting from us that
we shall make our staff conversant with the regional language also so
that they can interact with the local people in their language and have
a better understanding of their needs and achieve better results.
Keeping in view, this need our Rajbhasha dept has brought out following

1. 'aaiyey Seekhein' (To learn Bangla through Hindi)

2. 'Sugam marathi' (To learn Marathi through Hindi)

3. 'Hamara raasta Grahak ka raasta, Hamari bhasha Grahak ki bhasha'
(To learn Tamil through Hindi)

4. 'chalo Seekhein Gujarati' (To learn Gujarati through Hindi)

Other Circles have also been instructed to bring out similar books to

Telugu, Oriya, Assamese, Punjabi and Kannada through Hindi.

thought of the day in Hindi

A new initiative has been taken during the year to present a thought in
Hindi on Public Address System every day at 11 A.M. in your Bank.

Hindi Sentence Formation competition for non-Hindi knowing staff

During the year we have introduced a bi-monthly sentence formation
competition in Hindi for other than Hindi knowing staff.

Web application for online submission of Quarterly progress report

A new application has been developed and implemented by our own System
and Rajbhasha Officers for online submission of the quarterly progress

renowned lyricist neeraj & late poet nida Fazli Felicitated

September month celebrated as Rajbhasha Month in Region 'A' & 'B' and a
Rajbhasha week from 7th to 14th September 2015 celebrated in Region 'C'
i.e. other than Hindi Speaking areas. Renowned Hindi poet dr. Gopal
das neeraj and renowned Hindi–Urdu poet late Shri nida Fazli
felicitated on the eve of Hindi day at Corporate Centre of your Bank.

all India online Hindi Quiz

From this year, we have started an All India online Hindi Quiz in the
Rajbhasha Month with different elimination rounds. More than 11,000
staff members from all over your Bank participated with lot of

World Hindi day

As a responsible Corporate, all offices of your Bank abroad celebrated
11th January 2016 (10th January 2016 being a holiday) as World Hindi
day. The objective of this day is to create a conducive environment for
progressive use of Hindi there and also to encourage and motivate our
staff members to use Hindi in their day to day work according to the
target set in the Annual Programme. Among the highlights participation
of foreign nationals is a very encouraging sign for the propagation of
Hindi in those countries. Many foreign staff members won prizes in the
competitions held on this day.

RBI banking terminology committee meeting

A meeting of the standing committee set up under the aegis of Reserve
Bank of India to ensure uniformity in banking terminology in the
banking industry was hosted by us at our Corporate Centre at Mumbai on
28th and 29th January 2016. The meeting concluded with finalization of
737 Hindi equivalents of banking terms. On this occasion a
demonstration of online banking glossary portal of RBI was also made.
In the opening session booklet published by your Bank named 'Aaiyey
Seekhein' (Bangla through Hindi) presented to the Chief Guest and other

compendium of customer information in bilingual

The staff members are required to refer different procedural literature
in their day to day working in your Bank. A Compendium of Customer
Information in bilingual comprising of policy documents viz. Cheque
Collection Policy, Policy on Grievance redressal, Security
Repossession, depositors Rights, Customers Rights, The Code of Bank's
Commitment to Customers and detection and impounding of Counterfeit
notes etc. brought out during the year.

publication of 'banking briefs' in bilingual

With the objective of bilingualisation of Bank's training material our
Staff College brought out a 1040 pages 'Banking Briefs' (A Compendium
of Articles Relevant to Bankers). 'Banking Briefs' is freely used by
all the Apex Training Institutes and Learning Centres as training hand

'Statebankbuddy' in 13 major indian languages

Honourable Union Minister for Finance, Corporate Affairs and
Information & Broadcasting launched State Bank Buddy the mobile app of
your Bank in 13 major Indian languages.

Sbi Quick service launched in Hindi also

during the year your Bank has launched SBI QUICK service in Hindi also.
Customer can register himself for SBI QUICK service and after
registration SMS Hindi from his/her registered mobile number and
enquire about his/ her balance in the account and get a Mini statement
through SMS in Hindi.

awards –

- Bank's Quarterly Hindi house journal PRAYAS Adjudged among best
magazines by the RBI.

- Aashirwad a literary – social - cultural organization awarded best
magazine award to your Bank for its quarterly Hindi house magazine
'Prayas'. -Shailaja nair Foundation's In house Communication
Excellence Award 2015

honour us for Hindi house magazine


- Many of the Town level Official Language Implementation Committees
convened by our Bank were awarded by Honourable Governors of respective

5. vigilance mechanism

At SBI, there are three aspects to the vigilance function – Preventive,
Punitive and Participative. In line with this year's theme Preventive
Vigilance as a tool of Good Governance and having observed Vigilance
Awareness Week from the 26th to 31st October, 2015, Preventive
Vigilance is being given more importance as it inculcates a sense of
honesty and integrity among its employees and reinforce internal
Systems and Procedures to control malady activities. In this
connection, Preventive Vigilance Committee meetings are being held at
the branches and at regular quarterly intervals.

The concept of Whistleblower is another effective tool for Preventive
Vigilance. There is a well-defned Whistle Blower policy in our Bank,
which acts as a deterrent for employees that may be prone to carrying
out malicious activities. The Whistleblower is generally an insider,
who has near full knowledge of the misdeeds of fellow worker or higher
official, can provide evidence against the delinquent employees. We keep
the secrecy of the whistleblower and give protection to them so that
they continued proving an effective tool against wrongdoings without

Where certain lapses of grave nature are observed, such branches are
earmarked for Suo-motu investigations so that possible fraudulent
activities are checked and remedial measures taken. during the
FY2015-16, a total of 1459 cases (993 new cases) were taken up for
examination, out of which 1049 cases have since been concluded.

6. corporate social responsibility

State Bank of India has been a pioneer in the space of Corporate Social
Responsibility within the Indian Banking ecosystem. Your Bank believes
that it owes a solemn duty to the less fortunate and underprivileged
members of the society to make sustainable social change in their
lives. Social Responsibility is an integral part of its business and a
key aspect of its corporate strategy since 1973. Your Bank has been
setting aside 1% of its net profit for CSR initiatives and its CSR
initiatives have made a true difference in the lives of millions from
underserved communities. Your Bank is committed to the economic and
social wellbeing of the socially and economically impoverished.

FY2016 saw the CSR activities of your Bank scale new heights of

Focus areas of Sbi's cSr activities

- Supporting Health

- Supporting Education

- Supporting Persons with disabilities

- Skill development and livelihood Creation

- Environment Protection.

The CSR spend of your Bank for the FY2016 stood at Rs.143.92 crore. This
is the fourth successive year, where its CSR spend has crossed the
milestone of Rs.1000 million. The sector wise spend during the FY2016 is
as under:

Exhibit 44: Focus area wise Spend amount

no. category amt. ( crore)

1 Healthcare 56.00

2 Education 19.50

3 Skill development 44.66

4 Sanitation 4.04

5 Disability 5.41

6 Environment 4.78

7 Sports 2.21

8 Culture 1.20

9 Natural calamities 2.16

10 Others 1.98

11 R & d Fund 1.98

total 143.92

Supporting Healthcare: Health and hygiene are critical elements to
enhance the quality of life. Healthcare in India is a neglected area.
It is still inaccessible to many sections of the society, especially
the most vulnerable and depressed section of the society. Lack of
affordability, unavailability and lack of awareness are the major
reasons for a low healthcare index in India.

The primary focus has always remained to provide the basic
infrastructure to ameliorate the conditions of the common man. To
deliver quality healthcare to those belonging to underprivileged and
economically weaker sections of the society, your Bank has supported
large number of hospitals.

Your Bank has donated 18,761 Wheel Chairs & 17,958 Stretcher Trolleys
to large number of hospitals across the country. Your Bank has also
donated Rs.8.24 crore to over 50 charitable organizations for acquiring
57 Ambulances and Medical Vans.

Your Bank has donated Rs.24.20 crore to 63 charitable
organizations/hospitals for acquiring various medical/surgical
equipments. This has improved the capacity and potential of the
Hospitals to serve more & more needy patients. Your Bank has supported
surgeries for poor and underprivileged section of the society by
sponsoring 150 heart surgeries through Rotary Charitable trust
Bangalore and needy heart foundation. Your Bank has also donated Rs.98
lakh for supporting the old age homes.

Women's Health: Your Bank organized a Community Outreach Programme
under the title Vanita Arogya Sampada by conducting over 100 FREE
health check-up cum awareness camps for women across the country.

It is commonly said A healthy nation is always a wealthy nation.
Sport is an important part of our national culture. An Amount of Rs.2.21
crore was spent for development of sport especially in north eastern
region of the country.

Supporting Education: Education plays a vital role in improving the
standard of life of an individual and is viewed as an effective tool
for bringing social change through community development. State Bank of
India always strives to support for education of a weaker social group
in remote, unreachable & underdeveloped areas.

Holistic Support: Your Bank spent Rs.2.59 crore in holistically
supporting for food, shelter and sponsoring the cost of education. Your
Bank also spent an amount of Rs.3.22 crore on Computers, Equipments,
Furniture support for Setting up Science Centres to rural schools; and
the printing and distribution of one lakh note books among destitute
girl students. Your Bank also donated Rs.8.24 crore for acquiring 63
School buses/vehicles to help schools in rural areas to provide easy
transportation to underprivileged children.

rural Self development training institutes (rSEtis): has 116 Rural Self
Employment Training Institutes (RSETIs) across the country to mitigate
the unemployment and underemployment problem among the youth in the
country. This imparts formal vocational training, hand holding,
periodic skill up-gradation, capacity building, sustainable income
generation, providing forward and backward credit linkages. The aim of
training is to equip the rural youth to get employment or start a
profitable micro-enterprise. Your Bank has spent Rs.9.60 crore for the
construction of 9 RSETI buildings and for providing other
infrastructure to 12 RSETIs. The expenditure incurred for conducting
skill development programs for youth was Rs.28.69 crore at 116 RSETIs of
your Bank across the country. Your Bank also donated Rs.3.03 crore to
reputed nGOs in this field for acquiring various equipment for skill
development such as Sewing & knitting machines, buses and vans,
computers, laptops, projectors, utility vehicles for welfare activities
and also for setting up a call centre training facility for blind

Sbi youth for india Fellowship program: To bridge the widening
urban-rural divide and to organize and galvanize the youth, a unique
CSR Programme was initiated by your Bank in 2011-12. It entails the
urban educated youth to voluntarily get involved in various
developmental projects in rural areas. Under the initiative, your Bank
partnered with reputed nGOs that are engaged in development work in
rural areas, for conceiving and working on innovative projects in which
the enrolled youths take part. These youth were supported by a monthly
fellowship from your bank. The fellow of the fourth batch are currently
working at 23 locations in 12 states.

Swachh bharat: To support the National mission towards mass movement
for cleanliness, your Bank has extended its support to the 'Swachh
Bharat – Swachh Vidyalaya Abhiyan' initiative. SBI has spent Rs.3.90
crore during FY2016 for Construction of over 278 toilets and additional
water facilities in rural schools of India.

Support to persons with disabilities (pwds): Your Bank always remain in
the forefront for Protection and Promotion of the Rights and dignity of
Persons with disabilities (Pwd). Some specific actions take were:

- An Amount of Rs.5.41 crore was donated to reputed nGOs in this field

- distribution of artificial limbs, calipers, crutches, wheel chairs
among others. to approx.4200 beneficiaries.

- Distribution of tricycles & Hearing aids to disabled women and

- Community Based Rehabilitation project for mentally /physically
challenged persons.

Environment & Sustainability:

Environmental sustainability is defend as responsible interaction with
the environment to avoid depletion and degradation of natural resources
and maintain long term quality of the environment. Your Bank has spent
Rs.4.78 crore for acquiring, commissioning and maintaining of a number of
Solar power plants, Solar lamp, Solar water heater, and Solar street
lamps. It has also provided an animal ambulance and set up an operation
theatre for injured animals.

Global Warming & renewable Energy: Your Bank continues to remain
committed to issues pertaining to global warming and renewable energy.
To this end, your Bank has made significant contribution in several
ways, by way of financial support and initiatives in the area of
renewable energy, as well as adoption of various measures that reflect
the importance attached to environmental concerns and energy
conservation. notable in this regard are installation of Windmill
capacity aggregating 15 MW for captive use of clean power by your
Bank's branches/ offices in Maharashtra, Gujarat and Tamil Nadu, and
several other in- house energy efficiency initiatives like switchover to
lEd lights, installation of star rated ACs, solar powered water heating
among others. Other measures include adoption of green building norms,
rain water harvesting, management of waste disposal, composting among
others. in your Bank's premises. In line with the approach and
commitment in the Renewable Energy space, your Bank has endorsed the
International Financial Institutions' Statement on Energy Efficiency
Finance which was presented at the Climate Change Conference in Paris,
in November – December 2015 by the European Bank for Reconstruction &
development. In recognition of the leading role in Renewable Energy
financing, your Bank received the Outstanding Performance Award – 2015
from the Government of India.

national donations (assistance during natural calamities): Bank has
always been in the forefront to help the states affected by natural
calamities. The following donations were made during the year.

- Chief Minister's Relief Fund of Assam for Assam Flood Relief
measures – Rs.1.00 crore.

- Chief Minister's Relief Fund of Tamil nadu for Chennai Flood relief
measures - Rs.1.16 crore.

research & development Fund: Bank had set up a chair at the Asia
Research Centre, london School of Economics (lSE) jointly with Reserve
Bank of India in the year 2007 under the name India Observatory & IG
Patel Chair. An amount GBP 200,000 was contributed during the year.

Sbi children's Welfare Fund: Your Bank constituted SBI Children's
welfare Fund as a Trust in 1983, which extends grants to Educational
Institutions engaged in the welfare of underprivileged children such as
orphans and the destitute. The corpus of the fund is made by staff
members and matching contribution provided by your Bank. during FY2016
Bank has donated Rs.29.52 lakh to various educational institutes.

awards: Your Bank has won 10 awards for its CSR initiatives during

Sr. name of the award category award instituted by

1 national Award for Excellence in CSR &
Best Overall Excellence in CSR World HRd Congress

2 national Award for Excellence in CSR &
Best Overall Sustainability Performance World HRd Congress

3 Asian Banking, Financial Services &
Insurance Best CSR Practices World HRd Congress
(BFSI) Excellence Awards

4 Asian Banking, Financial Services &
Insurance Business Sustainability
Initiative of the Year World HRd Congress
(BFSI) Excellence Awards

5 lokmat Banking, Financial Services &
Best Bank (Public Sector) World CSR day
Insurance (BFSI) Excellence Awards

6 ABP news CSR leadership Awards Best
CSR Practices to SBI Foundation World CSR day

7 10th IndY's Awards Best CSR Practices
to SBI Foundation Fun & Joy at Work

8 ABP news Banking, Financial Services
& Banks with Best CSR Practices to SBI World CSR day
Insurance (BFSI) Awards Foundation

9 Blue Star: Global CSR Excellence &
Best CSR Practices World CSR day
Leadership Awards

10 Golden Globe Tiger Award for
Excellence & Best CSR Practices World CSR day
leadership in CSR

v. associates & subsidiaries

introduction &



As a part of mission to provide the entire gamut of financial services
across India, the State Bank Group, through its various subsidiaries,
provides a whole range of financial services, including life Insurance,
Merchant Banking, Trustee Business, 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 around 5.30% in
deposits and 5.33% in advances as on 31st March, 2016. Associate Banks
together have 6,798 branches and 8,964 number of ATMs.

Exhibit 47: the performance highlights of the associate banks as on

S . Name of the SBI Total Agg.
No Bank Share of
Ownership Assets Deposits

Investment %

1 State Bank of
Bikaner & Jaipur 676.12 75.07 110336 93320

2 State Bank of
Hyderabad 367.55 100.00 164597 139334

3 State Bank of
Mysore 628.63 90.00 82975 70244

4 State Bank of
Patiala 2459.10 100.00 131036 105806

5 State Bank of
Travancore 885.11 79.09 114507 100473

Name of the Bank Total Op. Net CD
Advances Profit Profit Ratio

State Bank of 74743 2305.03 850.60 80.09
Bikaner & Jaipur

State Bank of 114369 3292.66 1064.93 81.56

State Bank of Mysore 55418 1251.53 357.85 78.89

State Bank of Patiala 85941 1827.64 -972.39 81.22

State Bank of 67004 1798.33 337.73 66.69


Name of the Bank CAR Gross Net Return on
% NPAs% NPA % Equity %

State Bank of 11.06 4.82 2.75 13.34
Bikaner & Jaipur

State Bank of 11.62 5.75 3.37 10.65

State Bank of Mysore 12.43 6.56 4.18 7.92

State Bank of Patiala 11.50 7.87 3.98 -12.85

State Bank of Travancore 11.60 4.78 2.77 6.24

awards and accolades

Some key Social Initiatives taken by State Bank of Bikaner & Jaipur
during the year include the extending of financial support for
constructing 88 toilets for girl students and 78 general toilets in
schools across Rajasthan; and .extending help to the earthquake
affected people of Nepal and the food affected people in Chennai. The
awards won by State Bank of Bikaner & Jaipur during the year include
ranking 5th in Best MId Size Indian Banks by Business Today; Runner
Up under Best MSME Bank Award for Emerging Bank by Chamber of Indian
Micro, Small & Medium Enterprises {CIMSME}, awarded by Shri Piyush
Goyal, MoS for Power, Coal, new and Renewable Energy, Govt. of India.

The notable awards won by State Bank of Hyderabad during the year
include the SKOCH 'order-of-merit' award at the Smart Technology Awards
2015 for the e-payment solution provided to Government of Maharashtra
in the Marathawada Region; the 'drop Folder' utility project award
under Economic Value Add category at the same event; and the Second
Best Public Sector Bank award by the Kerala Bankers Club.

The notable achievements by State Bank of Patiala during the year
include reaching 100% coverage of all their villages by engaging 752
Business Correspondents; the opening of more than 12 lakh accounts
under the PMJdY scheme, mobilising deposits of Rs.161.30 crore from these
accounts; the issue of RuPay debit cards to more than 94% of the
accounts opened under the same scheme; and the Run Against drugs
across Punjab. Haryana and Chandigarh organised on the occasion of 99th
Foundation day of your Bank.

The notable achievements by State Bank of Travancore during the year
include ranking 1st among PSBs on the basis of support given to NHGs in
the form of linkage loan in Kerala award given by Kerala State
Kudumbasree Mission; Eco-Tech Savvy Bank for Emerging Bank – Winner for
MSME Banking Excellence Awards-2015; CSR & Business Responsibility
Award for Emerging Bank- Winner for MSME Banking Excellence
Awards-2015; SKOCH Awards for a) Kerala Government e-Tender /
e-Procurement, b) Corporate Social Responsibility- Social Circle, c)
Rural Self Employment Training Institute and d) OFAC Filtering in


Exhibit 48: non Banking Subsidiaries ( crore)

Sr. name of the Subsidiary ownership % of Net Profit
no company (State bank ownership (losses) for
interest) Fy2016

1 SBI Capital
Markets limited 58.03 100 278.88

2 SBI dFHI limited 139.15 63.78 * 72.19

3 SBI Mutual Fund
Trustee 0.10 100 0.33
Private Limited

4 SBI Global 137.79 86.18 0.86
Factors limited

5 SBI Pension
Funds Private 18.00 60* 0.51

*Group holding of SBI is 100% in SBI Pension Funds Private limited (SBI
60%, SBI MF and SBI Capital 20% each) and in SBI dFHI State Bank
holding is 72.17% (SBI 63.78%, ABs 5.27% and SBI Capital 3.12%).

Exhibit 49: non Banking Subsidiaries: Joint Ventures ( crore)

Sr. name of the Subsidiary ownership % of Net Profit
no company (State bank ownership (losses) for
interest) Fy2016

1 SBI Funds Management 31.50 63 165.36
Private Limited

2 SBI Cards & Payment
Services 471.00 60 283.96
Private Limited

3 SBI life Insurance
Company 740.00 74 861.00

4 SBI-SG Global
Securities 52.00 65 8.66
Services Private

5 SBI General Insurance 150.22 74 (120)
Company Limited

6 GE Capital Business
Process 9.44 40 38.52
Mgt. Services Private


SBICAPs is India's leading investment bank, offering entire bouquet of
investment banking and corporate advisory services to varied client
base across three product groups – Infrastructure, Equity Capital
Markets and debt Capital Markets. These services include Project
Advisory, loan Syndication, Structured debt Placement, Mergers &
Acquisitions, Private Equity, Restructuring Advisory, Stressed Assets
Resolution, IPO, FPO, Rights Issues, debt and Hybrid Capital raising.

On a standalone basis, SBICAPs posted a PBT of Rs.425.29 crore during the
period ended 31st March, 2016 as against Rs.507.90 crore during the
FY2015 and a PAT of 283.39 crore period ended 31st March, 2016 against
Rs.338 crore in FY2015.

SBICAPs declared 320% dividend during the period ended 31st March, 2016
against 430% in FY2015.

As a leader in its space, SBICAPs has attained recognition in the form
of some of the most prestigious awards in the industry namely,

- Aban Holdings limited (7) and OnGC Petro Additions limited (OPal)
(9) listed in the top ten deals in Asia- Pac ex-Japan

- OPal deal also listed (5) in the top ten Asia-Pac ex-Japan Loans:
Largest Deals by Country

- Aircel Group 137.29 billion rupee funding facility deal bagged
Telecom deal of the year award by ASSET TRIPlE A ASIA Infrastructure
Awards 2015

1. Sbicap Securities limited (SSl)

SSl, a wholly owned subsidiary of SBI Capital Markets limited, besides
offering equity broking services to retail and institutional clients
both in cash as well as in Futures and Options segments, is also
engaged in sales and distribution of other financial products like
Mutual Funds, Tax Free Bonds, Home Loan, Auto Loan, Tractor Loan, among

SSl has over 100 branches and offers demat, e-broking, e-IPO and e-MF
services to both retail and institutional clients. SSl currently has
more than 10 lakh clients. The Company has booked gross revenue of
Rs.160.82 crore during the period ended 31st March, 2016 as against
114.02 crore in FY2015.

2. Sbicap ventures limited (Svl)

SVl is a wholly owned subsidiary of SBI Capital Markets limited. dFId
(department for International development) has joined hands with the
SBI group to set up the neev Fund which is being managed by SBICAP
Ventures limited. SVl is acting as the Asset Management Company.

The neev Fund had its Initial close on 10th April, 2015 and current
corpus of the Fund is Rs.469.39 crore. Funds will be invested in
Infrastructure sectors such as renewable energy, water and sanitation,
agricultural supply chain in 8 identified states of India (Bihar,
Chhattisgarh, Jharkhand, Madhya Pradesh, Odisha, Rajasthan, Uttar
Pradesh and West Bengal). SVl has started earning Management Fee.


SUl is a wholly owned subsidiary of SBI Capital Markets limited. SUl is
positioning itself as a relationship outft for SBI Capital Markets
limited in UK and Europe. Relationships are being built with FIIs,
Financial Institutions, law Firms, Accounting Firms, etc to market the
business products of SBICAP.


SSGl, is a wholly owned subsidiary of SBI Capital Markets limited. SSGl
commenced business with effect from December 2012. Relationships are
being built with FIIs, Financial Institutions, law Firms, Accounting
Firms, etc. to market the business products of SBICAP. It has been
specializing in marketing of Foreign Currency Bonds and securing
clients for SBICAP SEC.


SBICAP Trustee Co limited (STCl), is a wholly owned subsidiary of SBI
Capital Markets limited. STCl commenced security trustee business with
effect from 1st August, 2008. STCl posted net Profit of Rs.13.35 crore
during the period ended 31st March, 2016 as against Rs.11.16 crore during
FY2015. STCl successfully launched an Online Will Creation service for
the individuals in the name of 'My Will Service Online'. It also
launched its 'Trustee Enterprise Management System' – an integrated
system to address all the trustee related operations and thus has
become the first and only Trustee Company in India to have full
automation across all trustee related operations.


SBI DFHI limited is one of the largest standalone Primary dealers (Pd)
with a pan India presence. As a Primary dealer (Pd) it is mandated to
support the book building process in primary auctions and provide depth
and liquidity to secondary markets in G-Sec. Besides Government
securities, it also deals in money market instruments, non G-Sec debt
instruments, etc. As a PD, its business activities are regulated by

SBI group holds 72.17 % share in the Company. The Company posted net
Profit of Rs.72.19 crore in the FY ended 31st March, 2016 as against
Rs.92.55 crore in FY2015.

The market share of SBI dFHI was 3.46% amongst all market participants
and 20.37% amongst Standalone Pds as on 31st March, 2016.


SBICPSl, the stand-alone credit card issuing company in India, is a
joint venture between State Bank of India and GE Capital Corporation,
wherein SBI holds 60% stake.

SBICPSl is 3rd largest in the industry in terms of Cards in force with
15% market share with a base of 34.68 lakh as at dec, 2015. The card
base has grown by 17% over the last financial year. In terms of spends,
the company has moved from 5th to 4th position in the current financial
year with ~ 12% market share. The growth in spends continues to be
amongst one of the highest in the industry @ 35% vs 26% growth in

The company is firmly on the path of profitable growth and has been in
profits since FY2010-11. In FY2015- 16, the company has reported PBT of
Rs.438 crore at a growth rate of 21% (Excluding one-off accounting
adjustments in FY2014-15). Profit after Tax stands at Rs.284 crore in
FY2015- 16 against Rs.267 crore in FY2014-15. lower growth in Profit
after Tax is due to one-time deferred tax catch up of Rs.54.1 crore in
FY2014-15 post wiping out accumulated losses in the year. The company
has proposed dividend @ 10% for FY2015-16 vs 5 % in previous year.

In the current year, the company has launched the Simply Click Card
to tap into the e-commerce focused younger generation, Co-branded
Cards with Federal Bank, lakshmi Vilas Bank, Capital One and Mumbai

In terms of new technology, the company has launched Pay-Wave Signature
Card based on nFC technology for contactless usage.

SBI Cards received the following awards during the current year:

- 'Simply ClICK Card' awarded 'Best Card Product/Program' of the year
at the Customer Fest Awards 2016 & 'Best credit Card Program' by Master
Card Innovations awards 2016.

- SBI Card was awarded for its competitive and market leading
practices in ' Talent Management ' by Delhi Management Association in
Annual Awards ceremony in 2015

- SBI Card's learning tool 'little Master' won national IT excellence
Award under the category of 'Leveraging IT for Business Performance'

- SBI Card awarded 'Best data Quality' in nBFC segment for 2015- 16
at Eighth Annual Credit Information Conference.

- SBI Card - Flexipay campaign has been selected as an ECHO leader at
the 2015 dMA Asia ECHO™ Awards

- SBI Card awarded Most Trusted Brand by Reader's digest Trusted
Brand Awards 2015

- SBI Card won International Gartner Award for the Most Innovative
Technology legacy Transformation for its Card One CRM tool.


SBI life Insurance Company limited is a Joint Venture between State
Bank of India and BnP Paribas Cardif in which SBI holds 74% stake. SBI
life has a unique multi–distribution model comprising Bancassurance,
Retail Agency, Alternate, Group Corporate and Online Channels for
distribution of insurance products.

The Company has proven its market leadership again in FY16 with a
growth rate higher than the growth of the industry. The company
witnessed a 29% growth in new Business Premium (nBP) vis-à-vis the
private industry growth of 18%. The market share of SBI life new
Business Premium (nBP) among all private players as on March, 2016 is
17.3% vis-a-vis 15.9% last year. The Company has been ranked no. 1 in
new Business Premium among the private industry. Further, the Company
has achieved 37% growth in Individual Adjusted Premium Equivalent (APE)
vis-a-vis 14% growth for private industry.

SBI life witnessed a PAT of Rs.861 crore in FY2016 against Rs.820 crore in
FY2015. Assets held as on 31st March, 2016 recorded a Y-o-Y growth of
13% at Rs.83,429 crore.

Leveraging wider reach achieved through its network of 774 offices, SBI
life has systematically brought large rural areas under insurance. The
company has sold 24% of total policies in this segment in FY2016. A
total of 285,027 lives covered by the company are from the
underprivileged social sector. The Company has been substantially
exceeding the minimum social and rural regulatory norms.

BnP Paribas Cardif have given their intention for dial-up to increase
their stake by 10% by buying the same from SBI. The proposed divestment
by SBI has been approved by SBI.

SBI life has reinforced its outreach initiatives in the realm of child
welfare, across different parts of the country, in line with its avowed
CSR goals. SBI life continues to remain focused on contributing
towards improving the quality of life of children and engaging
communities through healthcare facilities, educational and
infrastructural improvement and rural development. The Company has
engaged in societal sustainability through its partnership programmes
with national and local organizations and has impacted the lives of
more than one lakh children and extended support to over 500
educational institutions and organizations across the nation.

The various awards received are a testimony to SBI life's quality and
commitment towards customer centricity and professional excellence.
Awards and recognitions received during the year include:

- Won the 'The Indian Insurance Awards 2015' for under-served Market
Penetration, life Insurance (large Companies Category).

- Adjudged the Best life Insurance Company (Private Sector) at the
lokmat BFSI Awards 2015 by World HRd Congress.

- Won 'Marketing Campaign of the Year' award for Excellence in
Branding and Marketing at 6th CMO Asia Awards.

- Won TISS leapvault ClO Award 2015 for Best Program for Sales

- Won Knowledge Management leadership Award 2015 for Use of Best
Training Methods for Knowledge Management at the 14th Asia Pacifc HRM

- Adjudged the 'Most Trusted Private life Insurance Brand' by The
Economic Times, Brand Equity and nielsen Survey 2015 for the ffth
consecutive year.

- Won IndIAA Awards 2015 for 'Best Advertisement' under the
'insurance category'.

- Won Brand Excellence Award, 2015 in life Insurance (Private
Sector)' presented by World Marketing Congress.

- Won the 'Golden Peacock Award for Risk Management' for the year

- Won award in 'Best HR Technology' category at 'Inspiring Work
Places Conference 2015'.

- Achieved 'Gold' level of recognition in the Aarogya Healthy
Workplace Award 2015.

- Adjudged the The Economic Times Best Corporate Brands 2016.

- SBI life won the Prime Time Award 2015 (Bronze) for the Great dad
advertising campaign under the 'Best Creative Advertising – Single Ad
or Campaign' category in the BFSI sector.

- SBI life wins 'Stars Of The Industry Award for Excellence In life

- SBI life was awarded 'Golden Peacock national Quality Award' for
the year 2015 at IOd India's '26th World Congress on leadership For
Business Excellence & Innovation'.

In FY2016, the focus was on designing products that cater to the
changing market requirements and regulatory requirements. Based on an
analysis of the customer needs and current product portfolio, new
segments were identified and the products listed below were launched.
Each of them is aimed to address a specific need and to contribute to
comprehensiveness of the product portfolio.


SBIFMPl, the Asset Management Company of SBI Mutual Fund, is the 5th
largest Fund House in terms of Average Assets Under Management and a
leading player in the market with over 4.7 million investors. SBIFMPl
posted a PAT of Rs.165.36 crore in FY2016 as against Rs.163.43 crore earned
during FY2015. The average Assets Under Management (AUM) of the
company during the quarter ended March 2016 were Rs.1,06,781 crore with a
market share of 7.89% as against the average assets under management of
Rs.72,942 crore with a market share of 6.30% during the quarter ended
March, 2015. The Company has a fully owned foreign subsidiary namely
SBI Funds Management (International) Private limited, which is based at
Mauritius and manages Off-shore Fund. SBI Funds Management
(International) Private limited is a 100% subsidiary of SBIFMPl.


SBIGFl is a leading provider of factoring services for domestic and
international trade. SBI holds 86.18% share in the Company. Company's
services are especially suitable for MSME clients for freeing up
resources locked in book debts. By virtue of its membership of Factors
Chain International (FCI), the Company is able to ameliorate credit
risk from export receivables under the 2 factor model.

The Company has turned around in FY2015-16. Company has achieved PBT of
Rs.2.53 crore (as compared to loss of Rs.59.21 crore last year) and PAT of
Rs.0.86 crore (as compared to loss of Rs.46.23 crore last year). Turnover
of the Company crossed Rs.2,500 crore during FY2015-16 and was at Rs.2,532
crore as compared to last year's turnover of Rs.2,226 crore, representing
a growth of 13.75%. FIU level crossed Rs.1,000 crore as of 31st March,
2016 and was at Rs.1,008 crore as compared to last year level of Rs.921
crore, a growth of 9.45%.

Gross NPA level of the Company was brought down to Rs.297 crore and net
NPA level to Rs.30 crore as on 31.03.2016 against Gross NPA level of Rs.363
crore and Net NPA level of Rs.91 crore as on 31.03.2015. net nPA level is
below 3% of total FIU as on 31.03.2016.. Fresh Slippages during
FY2015-16 were contained at Rs.3.79 crore against much higher slippages
during the last 2 years i.e. Rs.85.02 crore in FY2014-15 and Rs.108.83
crore in FY2013-14.

Export Factoring Turnover under 2-Factor model went upto EUR 32.80 Mio
(InR 238 crore) during FY15-16 as compared to EUR 18.55 Mio (InR 138
crore) during 14-15, a growth of 76.82%. SBIGFl received 2015
Certifcate of Recognition for Best Service Quality Improvement as
Export Factor from Factors Chain International (FCI) in June 2015 at

The Company is adequately capitalized with AAA / A1+ ratings from
reputed rating agencies for its borrowing programmes.


SBIPF is one of the three Pension Fund Managers (PFM) appointed by
Pension Fund Regulatory &development Authority (PFRdA) for management
of Pension Funds under the national Pension System (nPS) for Central
Government (except Armed Forces) and State Government employees.
SBIPF, a wholly owned subsidiary of the State Bank Group, commenced its
operations from April 2008. The total Assets Under Management of the
company as on 31st March, 2016 were 46,019 crore (YOY growth of 47 %)
against 31,407 crore in March 2015.

The Company maintained lead position amongst Pension Fund Managers in
terms of AUM in both Government and Private Sectors. The overall AUM
market share in Private sector was 69%, while in the Government sector
it was 35%. The company maintained its number 1 rank in both Private
Sector and Government Sector. The Company was adjudged the Best
Pension Fund House under nPS for the year 2015 by Outlook Money.


SBIGIC is a joint venture between State Bank of India and IAG Australia
in which SBI holds 74% stake. The company's strong focus is on
disciplined pricing and fair and transparent claims management
practices. The cornerstone of the company's growth aspiration is
focussed on the Banca channel whilst selectively developing other
channels and products that meet business objectives and drive profitable
growth. The Company has entered in to strategic tie-ups with three
large car manufactures to drive growth in the Motor portfolio.

Gross Written Premium (GWP) stood at Rs.2039.8 crore in FY2016. The
Company recorded 29.4% growth in GWP YOY against an industry growth of
13.8%. Overall market share among all general insurance companies
increased from 1.9% to 2.1% and from 4.5% to 5.1% among Private
Insurers in FY2016 as compared to FY2015. The Company's market ranking
is 13th in the industry and 8th among the private players in FY2016.
SBIGIC occupies 2nd position in Personal Accident in the industry and
private insurers. The company ranks 2nd in Fire among private
insurers and 6th position in the industry in FY2016. IAG has given
their intention for dial-up to increase their stake by 23% by buying
the same from SBI. The proposed divestment by SBI has been approved by

Awards and recognitions include Marketing Initiative of the Year 2015
by India Insurance Awards; and 50 Most Infuential digital Media
Professionals 2015 by World Marketing Congress.

i. sbi sg global securities services private limited (sbisg)

SBISG, a joint venture between State Bank of India and Societe
Generale, was set up to offer high quality custody and fund
administration services to complete the bouquet of financial services on
offer by a financial conglomerate. SBISG commenced commercial operations
in Custody in May 2010 and Fund Accounting Services in Sept 2010. The
Company's net profits was Rs.8.66 crore in FY2016 as against Rs.5.69 crore
in FY2015.

The Assets Under Custody as on 31st March, 2016 rose to Rs.2,20,902 crore
as against Rs.,69,587 crore as on 31st March, 2015, while the Assets
Under Administration were at Rs.1,32,152 crore in March 2016 as against
Rs.79,090 crore in March 2015.

SBI-SG has improved its ranking on the Global Investor Survey in the
unweighted category from 3rd to 2nd in the 2016 survey for
sub-custodians in India. SBI-SG was adjudged the best sub-custodian for
India in the World's Best Sub Custodian Awards by Global Finance
Magazine 2015. SBI-SG participated in the Global Custodian survey for
sub-custodians in Emerging markets for the first time and was ranked 2nd
best for technology and 3rd best for reporting.

J. Sbi Foundation (SbiF)

In order to consolidate the CSR activities of your Bank, its associates
and subsidiaries and carrying out the same in a structured, planned and
an impactful manner, an idea to establish a separate entity in the form
of a Section 8 Company was conceived. SBI Foundation has been set up
as a 100% subsidiary of State Bank of India as a Section 8 Company
under the Companies Act 2013 for carrying out CSR activities for the
State Bank Group. While forming the Foundation, it was envisaged that
all the SBI Group entities would contribute to the Foundation for
carrying out their CSR activities. The Foundation has received
necessary approvals from RBI and registration with MoCA for carrying
out its activities. It has also recently received registration under
section 12A & section 80G of the Income Tax Act, 1961.

The aim of your Bank's CSR philosophy is to make a meaningful and
measurable impact in the lives of economically, physically and socially
deprived communities. Your Bank also aims to promote initiatives that
preserve, restore and enhance environment, ecological balance, and
natural resources, and improve sanitation and hygiene. Your Bank
recognises the importance of good corporate governance and corporate
social responsibility in promoting and strengthening the trust of its
stakeholders and community at large. Its mission is to make available
resources to the most vulnerable sections of the society directly and
through strategic partnerships/collaborations with impact making
entities in the social and development sector to create inclusive
sustainable development in the most transparent way.

The foundation will place its focus on the following areas:

- Healthcare & Sanitation

- Education, livelihood & Skill Development

- Women Empowerment and Care for Senior Citizens

- Sustainability & Environment

- Rural development


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
your Bank as on the 31st March, 2016, and of the profit and loss of Your
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 your Bank and preventing and detecting
frauds and other irregularities;

iv. that they have prepared the annual accounts on a going concern

v. that the internal financial controls had been laid down, to be
followed by your Bank and that such internal financial controls are
adequate and were operating effectively; and

vi. that proper system had been devised to ensure compliance with the
provisions of all applicable laws and that such systems were adequate
and operating effectively.


during the year, dr. Rajiv Kumar, Shri Harichandra Bahadur Singh and
Shri S.K.Mukherjee retired from the Board w.e.f. 5th August, 23rd
September & 3rd October, 2015 respectively, consequent upon completion
of their terms. Shri P. Pradeep Kumar, Managing director - CBG retired
on attaining superannuation on 31st October, 2015. dr. Hasmukh Adhia,
retired from the Board w.e.f. 2nd September, 2015 and Ms. Anjuly Chib
duggal, was nominated as GoI nominee director in his place w.e.f. 3rd
September, 2015.

Shri Rajnish Kumar and Shri P.K.Gupta were appointed as Managing
directors under section 19(b) w.e.f. 26th May and 2nd november, 2015
respectively and dr. Girish K. Ahuja and dr.Pushpendra Rai were
nominated as directors under section 19(d) w.e.f. 28th January, 2016 on
the Board.

The Directors place on record their appreciation for the contributions
made by the respective outgoing directors, namely, dr. Rajiv Kumar,
Shri Harichandra Bahadur Singh, Shri S.K. Mukherjee, dr. Hasmukh Adhia
and Shri P. Pradeep Kumar to the deliberations of the Board. The
directors welcomed the new directors Ms. Anjuly Chib duggal, Shri
Rajnish Kumar, Shri P.K. Gupta, dr. Girish K. Ahuja and dr.Pushpendra
Rai on the Board.

The Directors expressed their gratitude for the guidance and
co-operation received from the Government of India, RBI, SEBI, IRdA and
other government and regulatory agencies.

Above all, the Directors 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 for the dedicated and
committed team of employees of your Bank.

For and on behalf of the

Central Board of directors


date: 27th May, 2016

Source :
Quick Links for statebankindia
Explore Moneycontrol
Stocks     A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z | Others
Mutual Funds     A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z
Copyright © Ltd. All rights reserved. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express written permission of is prohibited.