State Bank of India Directors Report, SBI Reports by Directors
State Bank of India
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Directors Report Year End : Mar '15    « Mar 14
Dear Members,
 As part of focus on NPAs, Stressed Assets Management Group (SAMG)
 continues to work as a dedicated and specialised vertical, headed by a
 Deputy Managing Director, created specially to efficiently resolve high
 value NPAs. With five Regional Offices, each headed by a General
 Manager and two Chief General Managers overseeing the entire effort,
 SAMG has turned into a centre of excellence in the NPA resolution
 effort of the Bank. Effective 1st April, 2014, SAMG as a logical
 extension took over 42 Stressed Assets Resolution branches from
 National Banking Group, to extend its expertise for the resolution of
 high value retail NPAs, taking total number to 17 SAM and 42 SAR
 branches across the country. Currently, SAMG covers 23.4% and 62.60% of
 the Bank''s Non Performing Assets (NPAs) and Advances under Collection
 Account (AUCA) respectively. The recovery efforts of SAMG are
 supplemented by efforts put in by front-line operating staff across all
 verticals and branches of the Bank across the country. The CSPs are
 also being trained for acting as Banks recovery agents for extended
 Exhibit 28: NPA Management Performance
                                                   (Rs in crores)
                            FY 11-12                FY 12-13
 Gross NPAs                 39,676                  51,189
 Gross NPA%                   4.44                    4.75
 Net NPA%                     1.82                    2.10
 Fresh Slippages            24,712                  31,993
 Cash Recoveries/            9,618                  14,885
 Write Offs                    744                   5,594
 Recoveries in Written         962                   1,066
 Off Accounts
                                     (Rs in crores)
                       FY 13-14       FY 14-15
 Gross NPAs            61605          56,725      
 Gross NPA%             4.95           4.25%            
 Net NPA%               2.57           2.12%  
 Fresh Slippages      41,516          29,444     
 Cash Recoveries/     17,924          13,011    
 Write Offs           13,176          21,313      
 Recoveries in         1,543           2,318
 Written Off 
 However, while making all out efforts for reducing the NPAs, the bank
 often faces certain impediments in the legal process, which delay
 recovery. The Bank has approached the concerned authorities at
 appropriate level for ironing out those impediments. Despite these
 constraints, all actions initiated for resolution are constantly
 followed up and strategies are periodically reviewed for expeditious
 resolution of NPAs and the Bank is fully geared to meet the asset
 quality challenges of FY2016 when near-term pressure is expected to
 Corporate Debt Restructuring of assets is being done only in cases that
 are technically feasible and economically viable and where the
 promoter''s commitment to the project is ensured. Such cases are
 restructured only after conducting techno-economic viability (TEV)
 study. Further, restructuring is done also as per the guidelines put in
 place by RBI. Restructuring has attained prominence in recent years due
 to global slowdown, sluggish growth in the domestic market and the
 down-turn in industry.  Moreover, restructuring of viable units enables
 the Bank to recover funds locked with the borrower, aids continued
 functioning of the industry and helps in keeping manpower gainfully
 The Bank has endeavoured to contain the increase in NPAs, the
 strategies for resolution are being constantly reviewed and revisited.
 Suitable measures for prevention of NPAs by timely identification and
 diagnosis of problems of irregular accounts, tracking and reviewing
 Special Mention Accounts, account wise monitoring etc have been put in
 place. The Bank has adopted a two fold strategy for controlling fresh
 accretion and resolution of existing NPAs.
 - Early diagnosis of the problems and analysis of the reasons for
 irregularity, with appropriate strategies for time bound action to
 prevent slippage as NPA.  - Industry wise exposure limits have been set
 to minimize risk.
 - Loan portfolio is monitored on an ongoing basis.
 - Account tracking Centres have been set up to prevent accounts
 slipping into NPA category.
 - A system of Tele-calling/ personal contact/ SMS alert/ sending
 notices etc is being followed on default of overdue installments /
 irregularity in accounts.
 - In cases where soft recovery measures do not fructify, legal action
 is being initiated.
 - Filing suits in Debt Recovery Tribunals and other Courts for recovery
 of dues.
 - 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.
 - Action under SARFAESI Act is taken promptly to recover the dues by
 sale of secured assets.
 - Identifying Companies and promoters as Wilful Defaulters and
 arranging for display of their names on the websites of Credit
 Information Companies such as CIBIL. These names are also reported to
 - Credit cum Recovery camps are being organised.
 - Involving Business Correspondents, Business Facilitators and Self
 Help Groups in recovery of Agricultural NPAs., Lok Adalat / Bank Adalat
 are arranged.
 - Review of NPAs at various levels is done at regular intervals.
 - BIFR cases are closely followed up.
 - E-auction has been introduced for better price realisation.
 - Sale to ARCs is also explored in select cases
 - Identifying and engaging with strategic investors for takeover of
 stressed assets.
 - Entering into One-Time Settlements with borrowers.
 - Using Resolution Agents to take possession of properties mortgaged to
 the Bank and arranging for their auction.
 - Considering Debt Asset swaps in some cases.
 - Engaging investigation agencies to trace out unencumbered assets of
 promoters and guarantors and obtaining attachment before judgement over
 these properties.
 - Publishing photographs of defaulters in newspapers
 where warranted.
 - Persuading Large Corporate borrowers under stress
 to sell non-core assets, dilute their shareholding and bring in
 strategic investors thus reducing debt and improving viability.
 - The Bank organised a Mega Auction in Q4 of FY2015, where over 250
 properties were put to auction under SARFAESI Act on the same day. The
 properties put up for auction are located across the length and breadth
 of the country.
 - SAMG is also setting up a centralised repository of all fixed assets
 / properties charged to the Bank, wherein, pictures with description
 and walk through videos of all securities are available. Going forward,
 we plan to make the portal available in the public domain for preview
 of securities by ARCs and other interested buyers.
 - 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
 Early Warning Signal (EWS): As part of its proactive management of
 stressed assets to contain and control NPAs, we are in the process of
 introducing a system which would generate Early Warning Signals in the
 form of actionable alerts that would help the Bank to identify assets
 at the incipient stage of stress and facilitate their early resolution.
 The objective is to tackle problem loans well before they turn SMAs.
 AT@M: The web based Assets Tracking and Monitoring (AT@M) software
 enables all stake holders to have a single point of view along with
 granular drill down up to account level. It covers monitoring of SMAs
 as well as Sub Standard accounts.
 The Bank also tied up with GE Capital for proactively making calls to
 stressed accounts (SMAs) in Retail segment and Real Estate sector, to
 prevent slippages.
 SBI has Assets Tracking Centres at Circle level to track and monitor
 probable NPA accounts (SMAs) in SME and Agriculture segments, for
 making calls on the customers and follow up for recovery.
 Tele-calling to borrowers/guarantors has been introduced at Stressed
 Assets Resolution Branches to help in their recovery efforts. In order
 to simplify and add technology in the work flow of the call centres, a
 web based portal has been put in place, to efficiently monitor the call
 centre process.
 The Bank has formed various committees to periodically review stressed
 assets and suggest resolution and turn around strategies.
 2. Asset Quality improvement Measures for P-Segment
 PBBU Assets quality has improved during FY2015. To strengthen the
 assets quality, following strategies have been adopted:
 - SMS sent to borrowers before and after EMI due date
 - Soft recovery entrusted to specialised teams - A campaign for Auto
 Loan recovery Aar Ya Par Paisa Ya Car launched
 - Updation of defaulters'' details in Credit Information Companies''
 database being followed up - Auctioning of defaulters'' assets
 hypothecated/ pledged with the Bank
 - Portfolio Health Check and Skip Tracing for Auto Loan, Education Loan
 and -press Credit carried out
 3. asset Quality improvement measures for agriculture Loans
 - Several initiatives and innovative campaigns rolled out for arresting
 slippages and quick resolution of NPAs resulted in reducing the Agri
 NPA level to below 31st March, 2014. The initiatives adopted are: -
 ''R1U2 Campaign'' (Recover One & Upgrade Two) - launched to target NPA
 accounts, which pulled standard accounts to NPA under Single CIF
 Multiple accounts norm. The Campaign resulted in reduction of NPAs to
 the tune of Rs.214 crores.
 - Project Zero Campaign launched to drive renewal of NPA KCC/ACC
 accounts. The campaign is driven by SMS based daily monitoring of
 renewal / closure.  Under the campaign, 2.81 lakhs KCC/ACC accounts
 renewed / closed upto 31st March, 2015.
 - SBI has renewed the National level tie-up with Shriram Automal India
 Limited to support branches in auction of seized tractors to reduce
 agri NPAs.
 - Gold loan auctions carried out on fixed dates each month to drive NIL
 NPA position in Agri Gold Loan.
 4. asset Quality improvement measures for corporate accounts
 The asset quality of CAG remained well under control, with the gross
 NPAs at 0.44 % of total advances.
 Every effort is made to improve the asset quality through regular
 engagement with promoters of weak and stressed accounts. All high value
 stressed accounts and D rated borrowers are kept under special watch of
 General Manager for reduction in exposure. The sale to Asset
 Reconstruction Companies (ARCs) is examined in all eligible stressed
 accounts. These efforts have led to decline in retained NPA of Mid
 Corporates from 17,250 crores as on March 2014 to 14,775 crores as on
 March, 2015.
 2. INTERNATIONAL OPERATIONS International Banking Group (IBG)
 International Operations of the Bank is guided by the overarching
 principle of supporting global Indian corporatesandIndian
 diasporaspreadacrossgeographies.  In addition, the Bank also targets
 the local populace in line with its vision to become a truly
 International Bank.  To this end, the Bank has a separate Business Unit
 - International Banking Group (IBG) headed by Managing Director & Group
 Executive (CB) and supported by Deputy Managing Director & Group
 Executive (IB).
 global presence
 The number of foreign offices of the Bank at 191 is spread across 36
 countries. Diversity in operating structures is a cornerstone of the
 Bank''s expansion activity in different markets. During FY2015, the Bank
 has opened a new Representative Office in Myanmar and Indian Visa
 Application Receiving Centre at Dhanmondi, Bangladesh.
 Exhibit 29: Break-up of Foreign Offices (No.)
                                 FY2014       New Offices       FY2015 
                                              opened during 
                                              the year
 Branches /Sub-Offices / Other    68             1               69
 Subsidiaries / JV                (7)            0              (7)
 Offices of Subsidiaries/JV      110             0             110
 Representative Offices            8           1(1)              8
 Associates / Managed exchange     4             0               4
 Cos /Investments
 Total                           190           2(1)            191
 * Luanda Rep Office in Angola was closed and Yangon Rep Office in
 Myanmar was opened.
 The Group has dedicated verticals in Credit and NPA management,
 Compliance, Risk, Treasury, Human Resources, Operations, General
 Banking, and Strategy to support the extensive international operations
 of the Bank. IBG supports its major stakeholders through its business
 functions as detailed below:
 CORPORATES Merchant Banking
 The Bank facilitates raising debt in Foreign Currency by Indian
 corporates 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 FY2015.
 - 10 Syndications aggregating US.057 billion.
 - 15 Bilateral Loans aggregating US.563 billion to Indian corporates
 on a bilateral basis.
 treasury management
 In addition to supporting the global liquidity, liability management
 framework and investment portfolio of the Bank, Treasury Management
 Group also undertakes foreign exchange and hedge transactions for
 corporates.  In April, 2014, the Bank successfully priced a Rule 144A/
 Reg S US.25 billion multi-tranche Bond issue. Apart from bonds, some
 of the other sources of liquidity at Foreign Offices were:
 a. Long Term bilateral loans from multilateral agencies like Korea Exim
 Bank, EIB, KfW IPEX Bank
 b. Medium Term bilateral loans from Correspondent Banks.
 c. Medium term Syndicated Loans
 d. Reciprocal Lines.
 e. Repo arrangement
 f. Lines against Bankers'' Acceptance
 - Investment Portfolio at US87 Million - Interest Income from
 Investment - US0 Million - Divestment Income - US Million
 - Investment provisions written-back - US Million
 Back Office Centralisation Project
 During FY2015, the Back Office Centralisation Project was initiated to
 enable migration of the Back Office (BO) functions across foreign
 offices to Global Markets Unit Kolkata. Till 31st March, 2015, 10
 foreign offices had shifted their BO functions.
 Through specialized remittance products the Bank enables a ''window to
 India'' for NRIs residing in different corners of the world. In some
 countries with considerable Indian diaspora, the Bank also engages in
 retail lending activities for both Indian as well as local customers.
 Global Link Services (GLS)
 Global Link Services (GLS), a specialised outfit, caters to centralised
 processing of Export Bills collection, Cheque collection and online
 inward remittance transaction. Tie- ups with 30 exchange companies and
 seven banks in the Middle-East Countries for routing remittances
 through the Bank have substantially contributed to the inward
 remittances business. During FY2015, your Bank launched a new online
 instant remittance product ''Russia to India Flash'' for remittances from
 Russia to India.
 - Export Bills Handled (on behalf of Domestic Branches) - 70,012
 - Foreign Currency Cheques Collected - 47,116 - Online Inward
 Remittance - 89,02,307
 The Group also facilitates linkages of the Whole Bank with
 international stakeholders such as Correspondent Banks, Foreign
 Regulators, International Chambers of Commerce, etc. As such, there is
 considerable synergy between IBG and other Business Verticals such as
 Mid Corporate Group, Corporate Banking Group and Global Markets etc.
 - Correspondent banking relationships with 346 reputed International
 Banks across 88 countries - 1,617 Relationship Management Application
 (RMA) arrangements with Society for Worldwide Interbank Financial
 Telecommunication (SWIFT)
 - Master Risk Participation Agreements (MRPAs) entered into with 32
 banks with aggregate funded and non-funded exposure of over US
 The Bank is committed to the policy of zero tolerance of non-compliance
 with regulatory guidelines. Regulatory concerns identified by
 regulators/auditors are addressed on priority basis. Status of
 remediation is placed before the Audit Committee of the Board.
 The 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.
 Trends of credit risk, operational risk and market risk in respect of
 overseas operations are monitored, analysed and reported periodically
 to top management and central risk management departments of the Bank.
 The Bank ensures employee satisfaction through continuous engagements
 with senior management, improving productivity and retention. Further,
 the Bank encourages communication and awareness in its multi-cultural
 and multi-ethnic workplaces abroad.
 The Bank engages in several corporate social responsibility projects in
 many countries of its presence. The Bank also sponsors local and Indian
 festivals as also cultural programme to increase its visibility and
 enhance soft power of India as well its Indian brand.
 Nepal SBI Bank Limited, a subsidiary of State Bank of India was the
 only Bank to restore total banking services at its branches within only
 5 days after the disastrous earthquake in Nepal. Mobile Currency
 Exchange counters were opened at Kathmandu airport to assist travellers
 evacuated from the disaster zone. In addition to swift response in
 mobilizing services to normalize the financial system, the Bank also
 extensively engaged in humanitarian efforts.
 SBI &JBiC Sign Export Credit Line Agreement
 In September, 2014, SBI and Japan Bank for International Cooperation
 (JBIC) signed a loan agreement to set up an export credit line. The
 loan is co-financed with the Bank of Tokyo-Mitsubishi UFJ Ltd (BTMU)
 which brings the total co-financing amount to JPY 13.5 billion and
 US million approximately.  This credit line will be utilised by Meja
 Urja Nigam Private Limited (MUNPL) to finance the procurement of steam
 turbine generator equipments from Japanese Company and its subsidiary
 in India to construct a super critical pressure coal-fired power plant
 (660MWx2 units) in Meja, Uttar Pradesh.  MUNPL is a joint venture
 equally invested by NTPC Ltd and UP Rajya Vidyut Utpadan Nigam Limited.
 Global Markets Group, which manages the Bank''s treasury, has given a
 stellar performance this year with a 21% increase in net interest
 income, 85% jump in profit on sale of investments and a 33 bps
 improvement in yield on a portfolio of close to ''4.9 Lakhs crores. The
 Group has maintained the pre-eminent position of the Bank in providing
 foreign exchange / hedging products to customers, portfolio management
 services to retirement funds and in maintenance of CRR.
 FY2015 has been a favourable year for the Indian debt and equity
 markets as fall in CPI inflation (adjusted for new series) from 8.24%
 in March 2014 to 5.17% in March 2015 and formation of a stable
 government helped improve sentiment, boosting FII inflows. RBI reduced
 its benchmark repo rate by 50 basis points to 7.5% and cut SLR from 23%
 to 21.5%.
 Bond yields fell by more than 100 basis points during the year, while
 equity markets rallied by more than 25%. Your Bank has seized this
 opportunity to book record profits of Rs.3,428 crores through sale of
 investments, exceeding our FY2014 profit by 85%. Interest income has
 also gone up by 15%, while interest expenses are down 36% through
 better fund management, resulting in an almost 21% increase in Net
 Interest Income of Global Markets. In CRR management, your Bank again
 outperformed its peers by 195 basis points, resulting in interest-cost
 saving of around Rs.85 crores.
 In the equity markets, profits increased 132% YOY as we expanded the
 universe of securities, and increased the size of trading portfolio to
 benefit from the favourable market conditions.
 Global Markets provides foreign exchange solutions to the customers for
 managing their currency flows and hedging risks through options, swaps,
 forwards and bullion services. Our treasury marketing outfits
 complement this through frequent interactions with customers to provide
 them with inputs about market developments and suggesting products to
 suit their requirements. The Group also manages FCNR(B) corpus of the
 Bank and provides funds for FCNR(B) loans and Export Finance in foreign
 currency like PCFC/EBR for customers in India.
 Profits from forex and derivatives increased by around 9% to Rs.1,600
 crores (unaudited) this year, despite reduced volumes due to declining
 oil prices.
 To streamline our global forex operations, including 191 overseas
 offices in 36 countries and 675 domestic branches, an integrated Global
 Back-Office has been set up in Kolkata. In addition, we have
 significantly improved reconciliation of transactions in our Nostro
 accounts with foreign branches/correspondents through implementation of
 Transaction Life-Cycle Management (TLM) reconciliation software.
 We have also rolled out an internally designed and developed web based
 outward remittance product called FX-Out which will be accessible at
 all branches to facilitate transfer of funds upto Rs.10 lakhs to overseas
 We continue to explore opportunities in the area of Private Equity (PE)
 and Venture Capital Fund (VCF) Investments.  During FY2015, five new
 VCF investments amounting to Rs.495 crores were committed to.
 The JV set up with Macquarie and IFC in 2008, to manage a US$ 1.2
 billion India-focused PE fund, has invested approximately 96% of its
 total capital commitments. The Oman India Joint Investment Fund
 (OIJIF), set up in 2010, has completed its investments for Fund 1 worth
 US$ 100 million. The partners have decided to launch Fund 2 with a
 corpus of US$ 300 million. Further, the social infrastructure focused
 VCF, the Neev Fund, with a target fund size of Rs.660 crores was
 operationalised jointly with DFID (UK) and SBICAP Ventures Limited.
 Portfolio Management Services increased its AUM by 13.65% YOY to over
 Rs.3,15,000 crores in FY2015. It has consistently outperformed private
 sector peers in generating returns for the Employees Provident Fund
 Organisation (EPFO) funds, and was ranked by CRISIL as the best fund
 manager for EPFO for the third year in a row.
 To retain its pre-eminent position in the specialized domain, Global
 Markets continuously invests in skill development of dealers through
 training sessions conducted by industry experts and short courses in
 prestigious institutions like IIMs and NIBM.
 The Bank believes that Human Resources Management is an important facet
 of organization''s effectiveness.  Aligned with the best practices of a
 caring and responsible employer, and befitting its status of ''first
 among the equals'' in the banking industry, our Bank has been making
 constant endeavour 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 the
 Bank''s goals on an upward scale, on year to year basis.
 Towards this end, the Bank has taken important measures to meet the
 business challenges, which include, recruiting young and 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 for a scientific and objective approach to
 measure their performance; incentivising the top performers ; putting
 in place an organised structure for skill / capability building in
 critical positions and by implementing various measures for talent
 retention. All these have contributed in a big way to generate a highly
 satisfying working environment wherein the employees feel happy,
 engaged and enthusiastic about their work and take positive action to
 further the Bank''s business interests and reputation.
 In keeping with the Management tradition of being proactive in employee
 engagement which is critical for the Bank to sustain growth with
 profit, the current leadership has taken it to greater heights by
 taking important initiatives as detailed below during FY2015.
 Project ''Saksham''- Career Development System (CDS) and Manpower
 Planning -- The rapidly changing business environment, competition from
 the Public / Private Sector Banks and ever increasing expectations from
 the young and demanding customers have put high onus and responsibility
 on the Bank for higher productivity and customer service. To meet these
 challenges, your Bank is recruiting young and qualified candidates in
 large numbers, changing the products and processes. In order to keep
 the employees empowered and motivated at all levels, a Career
 Development System (CDS ), known as ''Saksham'' has been launched with
 the objective of scientific and objective approach for performance
 measurement and resource planning at all levels in the Bank. The new
 Career Development System provides for very high levels of transparency
 and is designed to provide an opportunity for a systematic, dynamic and
 progressive career planning to the individual. The revised CDS is
 intended to be an effective tool for promotion, incentives and rewards.
 Scientific resource / manpower planning would ensure that each of our
 units is adequately staffed to match the workload and business
 potential, result in improvement in staff productivity and to
 rationalize and merge roles and redistribution of staff to meet branch
 expansion requirements.
 Talent Management and Career Option - As a part of talent management
 and to support the talent retention process, necessary course of action
 was initiated in areas covering, grooming of young officers in basic
 banking during the initial phase of their career, capability building
 /re- skilling through training intervention, seminar, workshop,
 completion of mandatory assignments during the early stages,
 identification of officers for job specialization, posting in critical
 positions/specialized areas, viz., Credit, Forex operations, Marketing
 for a certain period.  Movement across verticals in the specialized
 area is also contemplated.
 Campus Recruitment - In order to further strengthen the human resource
 pipeline and to meet the skill gap requirements of the Bank in
 specialized areas, 190 young ''B'' school graduates of 2015 batch
 belonging to top ''B'' schools were recruited as Management Trainees.
 Performance Linked incentive Scheme - In order to keep the employees
 focused and motivated for a higher level of productivity and
 profitability, an IT enabled ''One Umbrella'' Performance Linked
 Incentive Scheme has been implemented by the Bank in modification of
 the earlier incentive scheme, covering both core and non-core business.
 The incentive amount payable is linked to the category of the positions
 vis-a-vis level of performance.
 SBi Aspirations - SBI Aspirations a social media forum, has been put
 in place for a two- way interaction whereby employees of the Bank can
 share their ideas, enhance their knowledge, find the solutions of the
 critical problems and express their views freely. With a view to
 facilitating employees endeavour in enhancing brand value and image of
 the Bank among the public, a code of conduct has been drawn up for the
 employees to follow while communicating in social media in a more
 responsible and ethical way within the framework of their Service Rules
 / Service Conditions.
 Sabbatical Leave - Taking a holistic view of employee requirements,
 provision of sabbatical leave with enlarged facilities has been
 introduced for women and Single Men (with children and / or Aged
 parents) employees of the Bank.
 SBi Pinkathon - It turned out to be the biggest Bank sponsored
 all-women run event in six cities across India, with the specific
 purpose of getting more and more women to adopt a fitter lifestyle for
 themselves and their families and to spread awareness about breast
 cancer and other issues that put women''s lives at risk. The employee
 interest in the events stood a testimonial of their awareness and
 contribution to the socially relevant issues.
 improvement in employee productivity - The large- scale recruitment of
 Gen-next employees in the Officers as well as in the Assistant grade
 over the last 4 / 5 years has not only brought about a far- reaching
 attitudinal change among staff in their customer interface and services
 across the branches, it has also become a catalyst in enhancing /
 improving the productivity and efficiency of the employees, thereby
 resulting in increased growth in business and profitability for the
 Bank. The business per employee (BPE) has increased from Rs.704 lakhs to
 Rs.1,234 lakhs during the period from FY2011 to FY2015.  The profit per
 employee (PPE) also increased from Rs.3.85 lakhs in FY2011 to Rs.6.02 lakhs
 in FY2015, which is indicative of the improved performance trend of the
 Women Employees in the Total Workforce:
 At present, the number of women employees in the total workforce of the
 Bank is 44,790 which constitutes 21% of the total staff strength. The
 composition of women employees in different cadres during the last 3
 years is as under:
 Exhibit 35: Sc / St / PWD Representation in employment:
 Category        Total             SC        ST           PWD
 Officers        78,540         14,833     5,566          664
                              (18.88% )   (7.08%)       (0.84%)
 Assistants      94,455         15,800     8,370        1,794
                               (16.72%)   (8.86%)       (1.89%)
 Sub-staff       40,243         10,810     2,804          234
                               (26.86%)   (6.96%)       (0.58%)
 Total         2,13,238         41,443    16,740        2,692
                               (19.43%)   (7.85%)       (1.26%)
 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 the Bank as also at the
 Corporate Centre at Mumbai.
 The Bank has a zero tolerance towards sexual harassment at workplaces
 and has put in place appropriate mechanism for prevention and redressal
 of complaints of sexual harassment at workplaces so as to ensure that
 women work with dignity and without fear. Complaints of Sexual
 Harassment of Women filed & disposed off during FY2015
 Total No. of cases filed      Total No. cases disposed off
 14                                    10
 - Bank was honoured with the ''Randstad Award'' for encouraging best
 practices in building the ''Employer Brand''.
 - ''Brand of the year'' in banking in India was awarded to the Bank at
 the World Branding Awards that took place in Paris, France on March
 25th, 2015.
 In a quest for becoming an organization which is a great place to work,
 your Bank has been quietly revolutionizing its training system. While
 the Bank continues a planned, proactive process for individual growth
 and organizational effectiveness, new techniques, trainers 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 these towards creating customer delight. A strong, robust
 infrastructure of Learning Centres encompassing the latest developments
 in technology, benchmarked with the best learning practices worldwide,
 including e-learnings, is being developed to meet the challenges of
 Our training system functions under the overall supervision and
 guidance of the STU of the bank and the training apparatus at present
 consists of five Apex Training Institutes (ATIs) and 47 Learning
 Centres. The sixth ATI, styled ''State Bank Institute of Management'', is
 being set up at Rajarhat, New Town, Kolkata.
 Inclusion is a National goal. Including differently abled citizens is a
 great part of it. Our Bank has 611 VI and 253 HI Employees and we are
 constantly innovating ways to train and equip them with skills to
 ensure that they become better contributors.
 We partner with NGOs as part of this process, and welcome ideas and
 suggestions. Let''s take an example of Mr. Chellam, one of our
 Mr. Chellam is working as Grahak Mitra in our Sivakasi Main Branch.
 After undergoing an extensive training programme at State Bank Learning
 Centre his proficiency has gone up and he now prints more than 300
 passbooks a day and answers customer queries. He also serves customers
 by linking their UID (Aadhar) number to their Bank accounts and
 updating their phone in their customer profile.  There are many other
 such colleagues, who have been empowered to serve our customers better.
 financial literacy centres (FLcs)
 Financial Literacy Centre at Rashtrapati Bhawan, New Delhi has been
 inaugurated on 11th December 2014 the birthday of our First Citizen.
 The target group for Financial Literacy is Domestic Help, labourers and
 school going children between 10-18 years of age, etc. They are
 explained basic essentials like managing income, savings and
 investments, main features of Prime Minister''s Jana Dhan Yojana, Jeevan
 Jyoti Bima Yojana and Suraksha Bima Yojana and basic banking like
 Savings Bank Accounts, Recurring Deposits, Fixed Deposits as such. What
 is tried is to empower the ordinary citizen, who feels a little
 intimidated when he steps into a public office, like a bank, through
 experience and learning in a congenial atmosphere, at our bank dummy
 banking branches. This initiative will be rolled out countrywide.
 - During FY2015, training made mandatory for all employees.
 - A culture of self-learning in the organisation, which be more cost
 effective and convenient in the long run, being promoted.
 - A convenient e-learning platform to drive efficient e-learning.
 - Training programmes aligned with current corporate priorities of the
 Business Units.
 - A Mass Communication Programme for sharing and communicating
 corporate concerns conducted across the Bank.
 - Constant upgrades of our training content and delivery learning to be
 at par with global best practices being tried.
 - Mandatory Learning and Weightage in AARF:
 The Bank has made a system of mandatory learning, consisting of role
 based e-Lessons, Study Courses, On-line courses, from reputed
 international Business schools among others, compulsory for assistants
 and officers.
 - Approving certification courses for self-learning:
 With a view to improving knowledge levels in the organisation, new
 external study courses are being promoted under Staff Reward and
 Recognition Scheme and staff encouraged to under take thes courses.
 - SBI Aspirations: With the spirit of enhancing learning and sharing in
 the Bank, the Bank has started learning communities for selected roles.
 The role holders are encouraged to participate and share their
 experiences within these communities as and when they participate in
 training programmes.  The Bank has introduced ideation blogs in the STU
 - SMS Alerts: To keep our staff updated on all relevant matters on a
 real time basis, suitable text messages on current banking issues are
 being sent to employees on a daily basis.
 - Training Needs Assessment: As a first step towards
 Knowledge/Skill mapping, an exercise for bridging training gaps and
 honing skills was conducted across the Bank, covering 2,12,704
 - Aarohan: ''Aarohan - Aim.. Aspire.. Achieve..'': For enhancing quality
 and professionalism in all our endeavours, the Aarohan training was
 implemented covering 2,08,019 employees.
 - Quizzing Culture in Bank: To encourage curiosity in our employees and
 also provide a platform to showcase their knowledge, STU conducted
 online quiz competitions across the Bank along with Mega Quiz
 - Mentoring of Newly Appointed Officers: The
 system of mentoring of newly appointed officials has always been in
 existence in the bank. In order to facilitate integration of
 Probationary Officers and Trainee Officers, the Bank introduced a
 formal system of mentoring by senior officials.
 - research Advisory committee: A Research Advisory Committee was formed
 to improve the quality of Research Work carried out by our Faculty and
 Research Officers and to make it more useful to the Bank.
 - cyber Security Workshop: This workshop was designed for all Banks to
 participate in and was conducted in association with Truth Labs and
 Microsoft. The discussion on how cyber criminals can compromise our
 systems including wi-fi routers and other equipment to defraud victims
 and underscored the importance of ethical hackers to help protect our
 technology environment.
 - Revamped onboarding and induction training of new recruits, with
 mentoring programme.
 - Supporting architecture for training in specialised skills, including
 risk, marketing etc., with external training partners and in-house
 e-lessons and 44 Harvard Manage Mentor e-modules.
 - Leveraging of social media for knowledge updation among Staff
 - Mass communication programme called ''Aarohan'' with a coverage of
 2,08,019 employees with further engagement with 536 in-house e-lessons,
 345 Mobile Nuggets and 350 e-capsules.
 - Mandatory e-lessons for POs/TOs/Officials opting for CAG/MCG/SAMG
 assignments/Newly Recruited Assistants.
 - ''Gyanodaya'' - the e-learning portal is now extended to all Associate
 - Case Studies, Research Projects and e-publications are available on
 the portal under ''e-library''.
 - Exciting business simulation games used for behavioural learning
 The 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. The Bank
 has policies and procedures in place to measure, assess, monitor and
 manage these risks systematically across all its portfolios. The Bank
 is amongst the leaders to undertake implementation of the Advanced
 Approaches under Credit, Market and Operational risk. The 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 the Bank is adequately capitalized 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 identification 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
 - Your Bank has started the Dynamic Credit rating review of borrowal
 accounts to capture deterioration in credit quality promptly and to
 initiate corrective action and facilitate correct pricing of risk.
 - An Early Warning Control System (EWCS) is being put in place to put
 in place a system driven, parameterized, quantified, trigger based
 monitoring system of credit exposures.
 - Your bank has developed behavior model for monitoring and scoring the
 retail borrower performance. The coverage of behavior model is
 gradually being expanded to cover entire retail related basket of
 - Coverage of Loan Originating system/Loan Lifecycle Management system
 (LOS/LLMS) is being steadily augmented to cover the entire credit
 - In order to focus on capital conservation and maximisation of return
 on capital, your Bank has introduced Risk Based Budgeting (RBB) . As a
 measure to quantify the reduction in risk we will be introducing levers
 to assess improvement periodically, based on Credit Risk Weighted
 Assets (CRWAs). Achievement of the budgeted advances levels will be
 subject to achievements under the specified levers.
 - The VaR and Stressed VaR for market risk are computed on a daily
 basis. Enterprise VaR is also back-tested daily.
 - The Operational Risk Management project is in advanced stage with
 collation of internal loss data, external loss data, RCSA phase IV and
 Scenario analysis phase II under process.
 - Group Risk is measured through Contagion Risk, Concentration Risk,
 Strategic Risk and Reputation Risk Indices.
 - Risk culture is being embedded through training of staff at all
 levels through e-learning lessons.
 - The Bank is implementing the Risk Adjusted Return on Capital (RAROC)
 framework in FY 2015-16.
 - The Risk Appetite statements for the Enterprise and Group are being
 re-looked and formalised.
 Credit Risk is defined as the possibility of losses associated with the
 diminution in the credit quality of borrowers or counterparties from
 outright default or from reduction in portfolio value. Credit Risk
 emanates from a bank''s dealings with an individual, non-corporate,
 corporate, Bank, financial institution or sovereign.
 - Your bank has strong credit appraisal and risk assessment practices
 in place for identification, measurement, monitoring and control of the
 credit risk exposures. The Bank uses internal Credit Risk Assessment
 Models and score cards for assessing credit risk under different
 exposure segments. Internal ratings of the Bank are subject to
 comprehensive rating validation framework.
 - Credit Risk Management Department studies 37 industries covering
 sectors, such as Telecom, Power, Coal, Aviation, NBFC, Textile, Iron
 and Steel covering approximately 85% of the Banks'' credit exposures.
 The detailed study covers market factors, potential and Portfolio
 Quality Index (PQI) based on which Industry-wise limits are set for
 taking bank-wide exposures.
 - RBI has allowed the Bank to participate in the parallel run process
 for Foundation Internal Ratings Based (FIRB) under the Advanced
 Approaches for Credit Risk. The 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) have been developed
 internally. The Bank has procured Credit Risk Management System (CRMS)
 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.
 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.
 - The 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 Limit Management Framework among others are in place.
 - Market risks are controlled through various risk limits, such as Net
 Overnight Open Position, Modified Duration, Stop Loss, Management
 Action Trigger, Cut Loss Trigger, Concentration and Exposure Limits.
 - The 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 Standardised
 Measurement Method (SMM). The 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 the Bank''s
 trading portfolio. The VaR methodology is supplemented by conducting
 quarterly stress tests of the trading portfolio.
 Operational Risk is the risk of loss resulting from inadequate or
 failed internal processes, people and systems or from external events.
 - The main objectives of the Bank''s Operational Risk Management are to
 continuously review systems and control mechanisms, create awareness of
 operational risk throughout the Bank, assign risk ownership, align risk
 management activities with business strategy and ensure compliance with
 regulatory requirements, which are the key elements of the Bank''s
 Operational Risk Management Policy.
 - The Bank had submitted its application to RBI to migrate to the
 Advanced Measurement Approach (AMA) for Operational risk.
 - Important policies, manuals and framework
 documents in line with RBI guidelines on Operational Risk Management
 Framework (ORMF) for migration to AMA are in place.
 - For FY2015, Bank had assigned capital for
 Operational risk as per Basic Indicator Approach (BIA).  Capital for
 AMA for FY2015 has also been arrived at as part of Bank''s project to
 migrate to AMA.
 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 Risk-based Performance
 Management System.
 - As part of the Bank''s Risk Management Project to transform 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.
 - The 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.
 Group Risk Management aims to put in place standardised risk management
 processes in Group entities.
 - 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 the 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 Group Risk Management Committee/Risk Management Committee of the
 - The Group Internal Capital Adequacy Assessment Process (Group ICAAP)
 document includes an assessment of identified risks by Group entities,
 internal controls and mitigation measures, and capital assessment,
 under normal and stressed conditions. All Group entities, including
 Non- banking entities, carry out the ICAAP exercise and a Group ICAAP
 Policy is in place to ensure uniformity.
 Information Security risk seeks to establish stringent information
 security structure to prevent data loss and threats.
 - Bank has put in place robust and agile Information Security framework
 in line with Business Strategy as also ever emerging cyber threats.
 - The Information Security Policy and Standards benchmarked against
 Global Standards and are reviewed annually.
 - The application setups undergo security reviews before launching as
 also are reviewed periodically.
 - 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 Lakhs EPS
 - Operates on 24x7x365 days basis for Real- time monitoring of
 security events across the enterprise and thus provides Secure Banking
 platform to the customers.
 - Visibility over the security threats from within and outside the
 Bank and improves Incident Reporting and Management.
 - Regular security drills and employee awareness programmes are
 conducted to ensure security and increase awareness. Disaster Recovery
 Drills are conducted regularly as part of the implementation of the
 Business Continuity Management System (BCMS). Bank has achieved
 following International Accreditations for various critical IT setup -
 - ISO 27001 for Information Security Management System (ISMS)
 - ISO 22301 for Business Continuity Management System (BCMS)
 The Bank has in-built internal control systems with well-defined
 responsibilities at each level. It conducts internal audit through its
 Inspection & Management Audit Department. Audit Committee of the Board
 (ACB) exercises supervision and control over the functioning of the I &
 MA Department. The inspection system plays an important and critical
 role in identification, control and management of risks through the
 internal audit function, which is regarded as one of the most important
 components of Risk Management Process. The Bank carries out mainly two
 streams of audits - Risk Focused Internal Audit (RFIA) and Management
 Audit, covering different facets of Internal Audit requirement. The
 Bank''s accounting units are subjected to RFIA. The Bank''s Management
 Audit covers administrative offices and examines policies and
 procedures, besides quality of execution thereof.
 Besides, the department conducts Credit Audit, Information Systems
 Audit (Centralised IT establishments & Branches), Home Office Audit
 (audit of foreign offices) and Expenditure Audit (at administrative
 offices) and oversees policy and implementation of Concurrent Audit
 (domestic and foreign offices) and Circle Audit. To verify the level of
 rectification of irregularities by branches, audit of compliance at
 select branches is also undertaken.  During FY2015, 9,889 domestic
 branches/BPR entities were audited under the Risk Focused Internal
 The 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
 profile 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.
 Management Audit encompasses Audit of Corporate Centre establishments /
 Local Head Offices / Apex Training Institutions, Associate Banks and
 Regional Rural Banks (RRB) sponsored by the Bank. To enhance the
 effectiveness of Management Audit, periodicity has been reduced from
 the existing once in three years to two years. 46 establishments /
 administrative offices were audited under Management Audit during
 Credit Audit aims at achieving continuous improvement in the quality of
 Commercial Credit portfolio of the Bank by critically examining
 individual large commercial loans with exposures of Rs.10 crores and
 above annually. The Credit Audit System also provides feedback to the
 business unit by way of warning signals about the quality of advance
 portfolio in the unit and suggests remedial measures.  Credit Audit
 also carries out a off-Site review (Loan Review Mechanism) of all the
 pre-sanction and sanction process of all individual advances above Rs.5
 crores within 6 months of sanction / enhancement / renewal. During
 FY2015, 9,129 accounts were subjected to on-site Credit Audit.
 All Branches are being subjected to Information System (IS) Audit to
 assess the IT related risks as part of RFIA of the branch. IS Audit of
 centralised IT establishments is carried out by a team of qualified
 officials/ outside experts. During FY2015, IS audit of 38 centralised
 IT establishments were completed.
 During FY2015, Home Office Audit was carried out at 48 branches,
 Management Audit at one Representative office / Country Head Offices
 and two Subsidiaries / Joint Ventures.
 Concurrent Audit System is essentially a control process, integral to
 the establishment of sound internal accounting functions, effective
 controls and overseeing of operations on a continuous basis. Concurrent
 Audit System is reviewed on an on-going basis in accordance with RBI
 directives, so as to cover the Bank''s Advances
 and other risk exposures as prescribed by the regulatory authority.
 I&MA department prescribes the processes, guidelines and formats for
 the conduct of concurrent audit at branches and BPR entities. During
 the year, Concurrent Audit System has been revamped, along with the
 introduction of a web-based solution, with external auditors appointed
 as Concurrent Auditors at a few centres.
 Circle Audit, which is a delegated audit, covers low-risk areas, and is
 conducted between two RFIAs. This enables an auditee unit to be better
 prepared for the RFIA. In FY2015, 10,671 units were audited by the
 Circle Audit Department.
 ESR mechanism introduced in audit system since September, 2014 to
 review sanctions of more than Rs.1 crore up to Rs.5 crores. 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 FY2015,
 4,339 accounts have been reviewed under ESR.
 Exception data generated by Data Warehouse (DW) based on requirements
 submitted by Offsite Monitoring Centre (OMC) at I&MA Hyderabad. OTMS, a
 web based solution has been introduced to capture deviations and take
 corrective actions. Presently 11 types of deviations are being
 monitored and will be reviewed as per requirements.
 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.5.00 crores and above. As on 31st March,
 2015 Legal Audit has been commenced in 8,976 eligible accounts and
 already completed in 3,310 accounts.
 CBS environment has been benchmarked to support one billion accounts,
 over 250 million transactions in a day, and delivering a throughput of
 over 17,000 transactions per second. Biometric authentication as a
 second-factor authentication has been implemented in branches for all
 CBS users. The process for the systematic and proactive risk
 identification, assessment, measurement, monitoring and mitigation of
 various risks in the IT vertical has been initiated.
 Exhibit 37: Alternate channels Growth
 As on              ATMs       Kiosks Cash Deposit       Total
                              (MFK SSK)   Machines       (Numbers) 
 31.03.2013         25,247     2,196      698            28,141
 31.03.2014         40,768     2,583    1,516            44,867
 31st March,2015    42,454     2,595    1,849            46,898
 State Bank of India, along with its Associate Banks has one of the
 largest ATM networks in the world with more than 54 thousands ATMs
 including Kiosks and Cash Deposit Machines as on 31st March, 2015. The
 ATM Base 24 Switch has recently been upgraded to handle close to 50,000
 ATMs, in addition of Electra Switch.
 The objective is to strengthen ATM facilities across every nook and
 corner of this vast country and enhance customer convenience. During
 FY2015, SBI has installed 1,686 ATMs. The total number of ATMs
 (standalone) now stands at 46,898 as on 31st March, 2015 (Includes
 ATM Kiosks CDM). Population group wise, the Bank has 50:50 coverage of
 Metro/Urban and Semi-Urban/Rural population groups.
 With a 29.84% market share, of India''s ATM population, SBI''s ATM
 network transacts 49.65% of the country''s total ATM transactions. On an
 average, over 99.96 lakhs transactions per day are routed through our
 ATM network. Our ATM network is one of the busiest in the country with
 average hit rate of more than 185 transactions per day per ATM. State
 Bank Group has a Debit Card base (standalone 16.07 crores) of 20.59
 On an average, the volume of cash that our ATMs dispense is Rs.2731
 crores a day and 8.33 million transactions a day.  On any given day,
 each of our ATMs dispense Rs.5.88 lacs a day and serve 185 transactions.
 More than 4,000  ATMs (during FY2015) have been enabled as Talking ATMs
 for Visually Impaired Customers during FY2015, which took the total
 Talking ATM strength to 8,600  as on 31st March, 2015. Every new
 machine added comes with this feature ab initio.
 Care for the physically challenged is our priority too. 2,414 of our
 ATMs have ramps to facilitate easy access for the physically
 challenged. Wherever possible, ramps and/or side railings are provided.
 Over 950 of our ATMs are on solar power and the count keeps growing.
 ATM user-safety is our concern too. Apart from physical care taker
 arrangements, 2,488 ATMs have been brought under electronic
 surveillance during the year. The total number of e-corners installed
 in the Bank has crossed the 500 mark with more than 200 being installed
 in FY2015.
 SBI is aggressive in rolling out CDMs for cash deposit by customers at
 these machines. As 31st March, 2015, the number of CDMs installed was
 1,849 These CDMs are available to the customer 24 x 7 for their
 The Bank''s online banking platform provides robust and
 customer friendly net banking services to its retail and corporate
 customers, including PSUs and Government Agencies. This cost-effective
 channel has enabled more than 86 crores transactions during FY2015,
 achieving 39% growth over the previous year. Our robust Retail Internet
 Banking (RINB) platform has also been optimised for visually impaired
 The Corporate Internet Banking (CINB) is well suited to Small, Medium
 and Large Corporates. It has also been immensely successful in
 establishing traction with Government Treasury & Accounts Departments
 as well. Online collection of fees/funds for Institutions, Corporates
 and Government Departments is being facilitated through Multi Option
 Payment System (MOPS), StateBankCollect 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 Corporates.
 During FY2015, the Bank has continued to be a major player in the
 e-Commerce space in the country. Through over 20,000 merchant tie-ups,
 direct or through State Bank Collect or through e-Commerce aggregators,
 the Bank has facilitated more than 72 crores e-Commerce transactions
 during the year. Some of the new features in Net Banking launched in
 FY2015 are:
 - Facility to register/inquire/cancel nomination
 through internet banking.
 - Linking of Aadhaar Number and LPG customer ID.
 - IRCTC - Quick Pay for quick booking of IRCTC tickets.
 - Online resetting of login password by using ATM card credentials.
 -Generation of Form 15G/H.
 - ATM Card holder can set daily transaction
 limit,channel type (ATM or POS or CNP) & usage type (domestic or
 international) through INB.
 - In State Bank Anywhere mobile app for smart phones, Quick Transfer of
 small amounts can be done without beneficiary registration, using QR
 Code or account details.
 - To prevent frauds perpetrated through fake/altered cheques, CINB
 provides facility to Corporates to upload particulars of cheques issued
 by them.  This will be used for data validation during cheque payment.
 - Loan against shares/facility has been launched to leverage the
 customer''s investments in shares for loans to meet unforeseen expenses.
 Customers can apply online for loans up to 20 lakhs against their
 - Facility has been provided to view details of units held with SBI
 Mutual fund through Internet banking.
 - NRI customers can raise a request for disposal of inward/outward
 funds in their account through Internet Banking, instead of sending
 letters/email to the branches.
 The Bank is the market leader for mobile banking services in India. The
 Bank''s mobile banking service, State Bank Freedom, offers low cost,
 round-the-clock, real time banking services focused on convenience and
 Depending on the mode of access, mobile banking facilities include
 account balance enquiries, mini-statements, check book requests,
 trading account enquiries, fund transfer within the Bank and to other
 banks in India, mobile credit top-ups, railways and air ticket
 reservations, payment of bills, payment of life insurance premiums as
 well as inter-bank mobile payment services. The Bank has also
 introduced a prepaid stored value account called Mobicash.
 The Bank has launched Tab Banking services for opening Saving Bank A/C,
 giving in-principle sanction of housing loan & auto loan and for
 recording PSS (Pre-Sanction Survey) of SME Loans. Staff will complete
 all account opening formalities by using tab, including taking
 photograph, uploading of KYC documents. The account opening details
 will be loaded in CBS platform and account number will be advised to
 customer. On the same line, Housing Loan / Auto Loan sales team visit
 the customer''s place, staff capture the KYC details, particulars of
 income and 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.
 IT-FO provides round-the-clock round-the-year IT support to 153 Foreign
 Offices (FOs) of the Bank in 26 countries.  These FOs use Finacle Core
 Banking application along with a host of add-on/surround applications
 like Finacle Treasury, ACE Pelican, SWIFT Connect, AMLOK, FNR etc.  to
 meet all the regulatory requirements besides providing high class
 customer experience.
 To provide a better and robust IT platform, currently all these FOs are
 being migrated to an upgraded improved version of Finacle Core Banking
 application. FOs in 17 countries have already migrated as on 31st
 March, 2015; the remaining FOs in 9 countries are to be migrated by
 August, 2015.
 A number of major projects have been taken up for implementation viz.
 e-Trade, INB, Mobile Banking, Supply Chain Finance, Loan
 Origination/Management System, observance of Foreign Account Tax
 Compliance Act(FATCA) etc. which will go a long way towards further
 enhancing & reinforcing our foreign operations.
 (1) integration of Domestic and Overseas Exposure
 With a view to have MIS for single view of exposure (fund/non-fund
 based credit, Non-SLR investment and derivative exposure), EDWP has
 integrated domestic and overseas credit exposure on individual borrower
 as well as group for both domestic and overseas operations (both on and
 off balance sheet for credit risk management).  This is to be updated
 at monthly intervals. Under the project, integration has been done for
 customers of all 18,200  domestic branches and 180  overseas branches.
 The exposure can be viewed across various dimensions like Borrower
 Constituent, Retail /Corporate, Asset Class, Facilities, etc. Written
 off and restructured accounts of individual customer as well as group
 customers has also been taken into account under the project.
 (2) Customer One View (COV)
 With large customer base and wide variety of products, Bank faced
 challenges in Customer Relation Management, Customer Service and came
 up with a solution named Customer One View (COV). The COV aims to
 provide 360 degree view of retail and corporate customers. It helps
 Bank to understand customer profile and serve accordingly. To meet this
 objective, DWP gathers data from various sources of Bank as well as
 from different subsidiaries and then process (massage/scrub) it to
 produce information nuggets on Customer portfolio/ profitability/Risk
 grade/Next Best Product etc.
 (3) COV integration with CBS
 COV is integrated with CBS to enable frontline staff to meet customer
 expectation by offering next best product and tap cross selling
 business opportunities by leveraging core strength of Data Warehouse
 Data repository & advanced analytics. Salient features are as under-
 - Web services deployed at CBS & DWP end X New menu button COV has
 been introduced in CBS B@ncslink.
 - Customer portfolio and Next Best Product available on a click to
 - Acceptance/Rejection of the offer is recorded.
 Prepaid cards are issued in both I NR and Foreign Currency.  Different
 variants of INR Prepaid cards such as Ez Pay 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
 FY2015, we have issued 24,555 Foreign Travel cards and approximately
 231,000 INR prepaid cards.
 State Bank Connect is the 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 Switch (MPLS)
 architecture for ensuring higher uptime and dynamic upgrade of
 bandwidth. The Bank and its Associate Banks are dependent on State Bank
 Connect to support business- critical applications such as the Bank''s
 core banking application, trade finance software, ATMs, payment
 systems, cash management software, corporate email and internet portals
 Internal Social Media SBI Aspirations a collaboration platform
 designed to empower the Bank''s employees to be more innovative,
 productive, and knowledgeable and to generate new ideas was launched on
 1st July, 2013. It is a platform that empowers employees to develop,
 nurture and remain in contact with network of other colleagues, sharing
 knowledge, ask queries using forum and discuss new creative ideas
 within communities.
 With a view to popularise the SBI Aspirations platform, we have
 introduced a number of initiatives like The Best Blog contest, quizzes,
 creation of new communities, Photo- vote contest etc., Further the
 platform was integrated with Knowledge Helpline & HR portals. The Best
 Blog Contest generated a lot of buzz amongst employees and encouraged
 people to start participating on this platform. The photo-vote contest
 #InOneYear saw a total of 444 people joining this contest community and
 450 people adding a profile photo to their profile. The photo- vote
 contest was also successful in getting 349 photos uploaded and 3446
 likes in total.
 The platform was made available to all the foreign office employees and
 also for the local based officials in Foreign office.
 External Social Media
 Bank has marked its presence on External Social Media sites like
 Facebook, Twitter and YouTube for listening to and engaging with the
 young generation customers.  We have achieved great response to our
 pages on these social media portals.
 (1) YouTube
 Our YouTube channel which was launched on 23rd January, 2014, is the
 leading YouTube channel amongst all Indian banks in terms of subscriber
 base. We have uploaded more than 120 videos on our YouTube channel.
 Currently it has over 6,500 subscribers; way ahead of other bank
 channels which have had their presence on YouTube for over 4 to 5
 years. Also our channel has garnered around 3.50 lakhs views implying
 the fact that the digital audience is liking our content.
 (2) Facebook
 Our Facebook Page was launched on 7th November.  2013. Our Facebook
 Page reached its 1 million fans milestone within 15 months of its
 launch and in just another 2.5 months we crossed the 2 million Fans
 mark.  We are ahead of Kotak Mahindra Bank, Citibank, IDBI Bank and YES
 Bank, all of whom have been on this social networking site for at least
 4 to 5 years.
 During the course of this year we had taken a number of initiatives to
 engage with audiences on this social platform. We have conducted
 various quizzes and contest on the themes like FIFA World Cup, Savings
 Mantra, Photo-vote contests etc.
 (3) Twitter
 Our Twitter handle was launched on 4th April, 2014.  Today we have more
 than 1.30 lakh followers of our handle. Our Twitter handle crossed the
 1 Lakh followers mark in March, 2015; within 11 months of its launch
 and it is the second highest followed handle amongst all Indian Banks,
 who have been on Twitter for over 3 or 4 years, such as ICICI Bank,
 HDFC Bank, Axis Bank, IDBI Bank & Kotak Mahindra Bank. Our Handle was
 certified as a Verified Handle by Twitter within 10 months, while some
 other bank handles with more than 4 years of presence are yet to get
 Verified Status. We have conducted various quizzes and contests on
 Twitter promoting our products and services. We have also extended the
 use of hashtags (#) to gain more visibility
 We also are in talks about launching our official pages on other
 networking sites like GooglePlus and LinkedIn.  Also we are evaluating
 how Social Media can be leveraged for business productivity by targeted
 advertising of our products and services.
 With an objective of becoming the pioneer in Next Generation Banking
 with a difference and enhancing the value proposition for our Retail
 Customers, 7 Digital Banking Outlets (DBOs) under the sub-brand
 sbiINTOUCH have been opened during the year.
 (1) ATM Card Limit/Channel/Usage Modifications Through INB
 A facility has been provided to State Bank Group customers in Internet
 Banking for modifying the daily limits (ATM, POS/PG) of ATM Card,
 disabling/enabling of channel (ATM,POS, PG), disabling/enabling of
 usage (domestic, international).
 (2) cardless Deposit
 This facility is available for walk-in depositors of the bank to
 deposit money in any account maintained with us. Deposit menu will be
 invoked by touching the CDM screen. The walk-in customers will simply
 enter his/ her own mobile number, beneficiary mobile number and key-in
 the beneficiary account number. Once accepted, cash will be scanned,
 counted and verified, Beneficiary will receive SMS on his registered
 mobile number on successful cash deposit.
 Transactions are limited to Rs.49,900 or maximum of 200 pieces of notes.
 The facility is currently available across 1,763 CDMs.
 (3) State Bank anywhere
 The latest initiative from the Bank comes to users in the form of a
 mobile smart phone application. The application State Bank Anywhere is
 now available on Android, iOS, Windows, and Blackberry platforms. The
 behemoth internet banking offering of State Bank of India has been
 bundled to provide a complete suite of banking services to the users
 conveniently on the move through this innovation.
 Features like mPassbook, on line issue of e-TDR, e-STDR, e-RD, Quick
 transfer using QR code through IMPS without beneficiary registration,
 RTGS funds transfer, credit card (VISA) transfers, Aadhar seeding to
 bank accounts have been provided.
 In addition host of regular banking services such as balance enquiry,
 mini statement, cheque book requests, funds transfer in self and third
 party accounts, IMPS transfers, NEFT, transfers within SBI group,
 mobile top up and DTH recharge, Profile setting, refer a friend,
 feedback have been provided.
 CINB module of the Banks Internet banking is being provided separate
 Application named as State Bank anywhere-Saral.
 To reach a wider audience segment, Hindi version of State Bank Anywhere
 in the name State Bank Kahin Bhi has also been launched. The Hindi
 version will make the usage of mobile banking more easy and comfortable
 for a larger number of customers.
 To facilitate users to easily find SBI ATMs, CDMs, Branches and
 E-corners in an area within the specified radius, a customer
 convenience smart phone application SBI Finder has been developed and
 rolled out on Android and iOS platforms. It provides directions to
 reach the SBI ATMs, CDMs, Branches and E-corners located within a
 specified radius of customer''s current location using GPS.
 With a view to display Bank''s holidays in different States / Circles of
 the Bank, SBI Holiday Calendar customer convenience application for
 smart phone on Android and iOS platforms is available.
 Key developments during FY2015 were:
 Integration of e-KYC with account opening in CBS:
 The Aadhar based attributes are verified from UIDAI database and
 certified for this purpose. This development will help the customers in
 opening their accounts with our Bank without having to produce physical
 copies of their identification documents to the Bank branch.
 New screen provided to branches to enter the details for LPG-ID
 registration in CBS:
 This has been done to facilitate the customers who do not have Aadhar
 numbers. They can still link their account to the LPG_ID for the
 purposes of availing the subsidy.
 Automatic seeding of Aadhar number to newly opened accounts under
 Financial Inclusion:
 In all those accounts which are opened on the basis of Aadhar card /
 details submitted by the customer, the Aadhar number will be
 automatically linked to the account thus opened.
 RBI''s KYC Compliance:
 Notices were generated and sent to all the KYC non- compliant customers
 in March, 2015, as specified by RBI.
 Updation of correct Mobile Numbers:
 Functionality developed to notify the teller about missing or invalid
 mobile number for a customer whenever his account is transacted in CBS
 application to enable him/her to capture / correct the same. This will
 help the branches to update the CBS data with the latest mobile number
 of the customer, as the mobile number is required for sending various
 types of SMS''s to the customers.
 Exhibit 41: List of Awards received during FY2015
 Award                       Category                      Received in
 SAP Ace Award               Best Run Pay Roll             August 2014
 IDRBT Awards 2014           Best Bank Award for Use       October,
                             of Technology for Financial   2014
                             Best Bank Award for 
                             Electronic                    October,
                             Payment Systems               2014
 Finnoviti 2015              Analytics at SBI              January,
 Award                                                     2015
                             Performance Planning &        January,
                             Budgeting at SBI              2015
 Global Finance              Best Trade Finance Bank 2015  January  
                             - India                       2015
 CSI Excellence in           Banking Financial Services &  February,
 IT Awards 2014.             Insurance                     2015
 Special Mention Award)
 IBA Banking                 Best Technology Bank of       February, 
 Technology Awards           the Year                      2015
                             Best Use of Data
                             Best use of technology to 
                             enhance customer experience- 
                             shared with Union Bank of India 
                             Best use of digital and channels 
                             Best use of technology for 
                             leveraging technology in Training 
                             & Human resources, e-learning 
                             Best Payment initiatives - Runner 
 CIBIL Award                 Data Quality                    March, 
 2014-15                                                     2015
 During FY2015, SBI has made several improvements to its Business
 Processes as an on-going exercise for meeting the highest principles of
 excellence. These include the following:
 - Productivity benchmarks for various processing centres
 - Rightsizing of Networks and Zones for creating a structure that is
 more enabling & efficient.
 - Cost Control, under Project Stationery Management, is being
 implemented by reducing and rationalising registers/ forms &
 introduction outsourcing model for stationery management.
 - PPOs have been digitised for easy access, efficiency & productivity
 of the operating staff.
 - Centralisation of cheque book printing is being implemented to reduce
 printing cost.
 The essential function of the Bank''s Vigilance Administration is not
 only to check the non-compliance of systems and procedures and
 initiating suitable disciplinary action against serious transgressions,
 but also to devise and implement various preventive measures by
 reviewing the systems and processes to ensure higher effectiveness and
 least vulnerability.
 The concept of vigilance as an investigative process and an exercise
 for punitive action has over time evolved to that of ''Vigilance for
 Corporate Growth'', the emphasis getting shifted from punitive vigilance
 to ''Preventive and Proactive Vigilance'' through an active participation
 of all concerned. Some of the Bank''s important preventive measures
 comprise the following:
 - Preventive Vigilance Committee (PVC) Meetings are being held at the
 branches and the BPR outfits at quarterly intervals.
 - Under Whistle Blower Scheme, our staff members are expected to advise
 appropriate authorities about irregular and unethical practices, if
 any, being indulged in by colleagues and even seniors.
 - Suomoto investigations are conducted at fraud and complaint prone
 branches. The primary aim of such investigations is to find out
 non-adherence to the systems and procedures by the branch, which may
 lead to perpetration of fraud in future. Suitable corrective measures
 are initiated to stop irregular practices, if any, brought out in the
 During FY2015, 1,109 cases of officers were taken up for examination
 under the vigilance category, compared to 1,024 cases during the
 previous financial year, and closed 1,126 cases in FY2015 in comparison
 to 1,063 cases closed during FY2014
 The Bank made unprecedented efforts in the area of implementation of
 Official Language Policy and launched Mobile banking application in
 Hindi named ''STATE BANK KAHIN BHI'' during the fiscal year for their
 customers. This has the facility for making all type of banking
 transactions in Hindi on mobile phone. Within 6 months of its
 introduction almost 15 lakhs users have downloaded this app and got a
 rating on an average of 4.4 out of 5.
 All the ATMs of the bank have the option of all the major regional
 languages, official language Hindi and English.  Thus the customers can
 make transactions in their language of choice.
 During FY2015, SBI launched a new corporate website in Hindi and all
 other websites of the bank including Corporate and internet banking
 websites in Hindi are being updated at regular intervals. This is
 another initiative of SBI in widening and strengthening its
 relationship with customers.
 Bank''s Security Manual and RTI Manual are brought out in Hindi also. A
 compilation of training material in Hindi named ''Hindi
 Prashikshanavali'' has been brought out during the fiscal year to help
 staff members use Hindi in their day to day operations.
 Notable progress has been made in the work of bringing Bank''s HRMS
 portal on Hindi platform in a phased manner.  Standard E-mails
 emanating from HRMS department for more than 2,00,000 employees of the
 Bank every month have been started in bilingual i.e. Hindi and English.
 - Indira Gandhi Rajbhasha Shield 2014 (Honorable President of India
 Shri Pranab Mukherjee has given the shield on 14th September, 2014 at
 Vigyan Bhavan, New Delhi),
 - RBI Hindi Journal Shield (Received from Governor, RBI, Dr. Raghuram
 G. Rajan), and - Best Bank Town Level Official Language Implementation
 Committee award which was given to our Lucknow, Siliguri and
 Thiruvananthapuram town committees by Honourable Governors of
 respective states.
 Responsiveness to the needs of the society and responsibility to meet
 those needs is ingrained in the ethos of our Bank. CSR is not an
 isolated practice or initiative for the Bank but runs through its
 entire business paradigm. Our CSR activity touches the lives of
 millions of poor and needy across the length and breadth of the
 country. CSR is embedded in many of our business initiatives and has
 been practised in State Bank of India since 1973, under Community
 Services Banking covering various social, environmental and welfare
 activities. The Bank has a comprehensive Corporate Social
 Responsibility (CSR) Policy, approved by the Executive Committee of the
 Central Board in August 2011 and earmarks 1% of the previous year''s net
 profit as CSR spend budget for the year. The CSR budget for the FY2015
 was Rs.109 crores.  Against this budget, the actual CSR spend was Rs.115.80
 Crores during FY2015.
 focus areas of our csr activities are:
 - Supporting education.
 - Supporting healthcare.
 - Supporting sanitation
 - Livelihood creation.
 - Assistance during natural calamities like floods/
 droughts etc.
 CATEGORY WISE Classification:
 Exhibit 42: Category wise Classification
 Category                            Amount(Rs in crores)
 Supporting Healthcare                    28.56
 Supporting Education                     41.20
 Sanitation                               13.64
 Vocational training/Livelihood           24.24
 Others                                    4.16
 Natural calamities                        4.00
 Total                                   115.80
 Technology is a vital part of the modern education. To support school
 education especially in the schools for the under privileged children,
 Bank has provided large number of computers across the country during
 FY2015 at a spend Rs.7.21 crores.
 Infrastructure support by way of furniture, scientific instruments and
 other educational accessories and donation of large number of school
 buses/vans for the benefit of physically/visually challenged children
 and children belonging to economically weaker section of society have
 been provided by all our Circles.
 To help in delivering quality healthcare, particularly to those
 belonging to underprivileged and economically weaker sections of the
 society and also to respond to the need of quick shifting of critical
 patients to hospitals, Bank has donated 79 ambulances and medical vans
 in rural and semi urban centres of various States and Union
 Territories. Further, Bank has donated various medical equipment to Eye
 Hospitals, Blood Banks and Cancer Hospitals. Major spend under
 healthcare was assigned to cancer detection & prevention.
 Participating in the National endeavour of Swachh Bharat Mission, Bank
 has supported reputed NGOs for construction of toilets in needy schools
 especially girls schools under ''Swachh Vidyalaya Campaign''. During
 2014-15, Bank has donated Rs.13.64 crores for construction of 435 toilets
 in 398 schools in nine districts.
 For skill building of the rural youth, Bank has provided infrastructure
 support of Rs.21 crores to 24 Rural Self Employment Training Institutes
 (RSETIs). At present 117 RSETIs are being run by the Bank, which is the
 highest number of RSETIs established by any Bank in the country.
 RSETIs of the Bank are rendering yeoman service in skilling the rural
 youth under CSR.
 SBI Youth for India is a unique Indian rural fellowship Programme
 initiated, funded and managed by State Bank of India (SBI) in
 partnership with reputed NGOs of the country. It provides a framework
 for India''s bright young minds to join hands with rural communities,
 empathizes with their struggles and connects with their aspirations.
 The selected fellows, mostly from the urban areas and from some of the
 top institutes/corporates work with experienced NGOs on challenging
 grass root development projects
 Your Bank has always been at the forefront to help the States affected
 by natural calamities. During the FY2015, the Bank has lent its helping
 hand to the States of Jammu & Kashmir and Andhra Pradesh with a
 donation to the Chief Minister''s Relief Fund of the respective States
 to provide succour to the people affected by flood/cyclone.
 CSR activities of the Bank during the year FY2015 have received wide
 attention and appreciation. This year witnessed the highest number of
 awards (25 awards) for the Bank which includes its CSR achievements.
 - Golden Peacock Award for Sustainability, London.
 - Golden Peacock Award for Corporate Social Responsibility, Mumbai
 - Indo- American Chamber of Commerce Best Bank Award, Mumbai
 - Global Finance Magazine, New York '' Best Emerging Markets Bank in
 Asia Pacific 2015'' Award - World Branding Forum, London ''Brand of The
 Year Award''
 - BFSI '' Environmental Award, Singapore - CMO Asia Award for Best CSR
 Practices, Mumbai - Business World Magazine ''Socially Responsible Bank''
 Award, Mumbai.
 - Golden Globe Tigers Awards for CSR best Practices & Innovations in
 CSR. - Kuala Lumpur.
 State Bank of India, in its constant endeavour to enhance the
 sustainability of the environment and cutting down on consumption of
 paper, has encouraged our shareholders to receive the Bank''s Annual
 Report in electronic form (eAR). In order to incentivize the switch
 over to electronic mode by the shareholders, it was decided by the bank
 to contribute a nominal sum to a charitable cause for each annual
 report sent to shareholders.
 In recognition of the support and acceptance of eAR by shareholders in
 FY2014, the Bank has contributed Rs.3.09 crores, representing Rs.100/- for
 each eAR, to the SBI Children''s Welfare Fund, which is dedicated
 towards improving the lives of underprivileged and downtrodden
 The Bank has also taken proactive steps to reduce the direct impact of
 its operations on the environment. From recycling programs to energy
 conservation in offices and branches, the Bank is working to reduce its
 operational footprints on the environment. Some of the measures
 introduced are:
 - Wind based power projects commissioned and the power generated from
 these projects power Bank''s branches/offices in the States of
 Maharashtra, Gujarat and Tamil Nadu.
 - Installed Solar ATMs, introduced Green Channel Banking (Paperless
 - Initiated a pilot project to determine the Carbon footprint levels,
 which will help in determining the Bank''s resource consumption pattern
 and enable the Bank to take effective steps to implement various
 measures for sustainable usage in a cost effective way.
 - The Bank has put in place SMART i.e. Specific, Measurable,
 Achievable, Realistic and Time bound Green Banking Goals, some of which
 have obtained star rating at all Local Head Office premises from Bureau
 of Energy Efficiency. Construction of ''Green'' buildings, waste water
 treatment plants, programs to sensitize staff on energy savings are
 some of the other initiative taken.
 - The recycling plant housed at the basement of the SBI Bhavan converts
 the waste generated to compost which is used at State Bank Bhavan and
 State Bank residential quarters.
 - Over 54,000 SBI group ATMs and Cash Deposit machines (CDMs) ensure
 reduced consumption of paper at Branches.
 - Committed to financing of renewal energy projects (solar) to the tune
 of 75,000 crores over the next 5 years in view of GOI target for
 generation of 10,000 MW from renewable energy by 2019 subject to
 viability/feasibility and other laid down criteria pertaining to
 financing such projects.
 - Tree plantation drive undertaken during monsoons across all Circles
 and more than 450,000 trees planted during last three years.
 - Rainwater Harvesting Projects have been implemented in a number of
 Bank''s Buildings across the country.
 As a part of mission to provide the entire gamut of financial services
 across India, the State Bank Group, with a network of 22,887 branches
 (including 6,554 branches of five Associate Banks), in addition to
 banking services, the 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
 Associate Banks
 The five Associate Banks of SBI had a Market share of 5.22% in deposits
 and 5.66 % in advances approximately as on 31st March 2015. Associate
 Banks together have 8,561 number of ATMs, which are shared by entire
 State Bank Group.
 Exhibit 43: The performance highlights of the Associate Banks as on
 31st March, 2015 (Rs.In crores)
 Name of the Bank              SBI Share of        Total       Agg.
                              ownership           Assets       Deposits
                              Investment    %
 State Bank of Bikaner         676.12    75.07     102302      83237
 & Jaipur                      
 State Bank of Hyderabad       367.55   100.00     154503     131194
 State Bank of Mysore          628.63    90.00      79469      65058
 State Bank of Patiala        1659.10   100.00     116709      91987
 State Bank of Travancore      505.85    78.91     105595      90328
                              Total      Op.        Net         CD 
                              Adv.       Profit     Profit      Ratio
 State Bank of Bikaner      71153        2104      777        85.48 
 & Jaipur
 State Bank of Hyderabad   108753        2914     1317        82.89 
 State Bank of Mysore       53296        1331      409        81.92
 State Bank of Patiala      80648        1599      362        87.67 
 State Bank of Travancore   69907        1372      336        77.39
                               CAR      Gross   Net         Return
                               %        NPA     NPA             on
                                        %       %         Equity %
 State Bank of Bikaner        11.57     4.14    2.54        12.92
 & jaipur
 State Bank of Hyderabad      11.26     4.58    2.24        13.73
 State Bank of mysore         11.42     4.00    2.16         9.40
 State Bank of Patiala        12.06     5.41    3.88         5.41
 State Bank of travancore     10.89     3.37    2.04         6.65
 Awards and Accolades
 - State Bank of Bikaner & Jaipur was awarded the Social Banking
 Excellence Award: 2014: Public Sector Banks Category by ASSOCHAM.
 - State Bank of Hyderabad Bank has received Best Bank (Public Sector)
 Award instituted by ABP News.
 - State Bank of Mysore was awarded Best Bank Award for Tech Savvy - by
 Chamber of Indian Micro, Small &
 Medium Enterprises, New Delhi
 - State Bank of Patiala has received  Best Bank Award For New
 Initiative- Runner Up from Chamber of Indian Micro Small and Medium
 Enterprises (CIMSME) New Delhi.
 Exhibit 44: Non Banking subsidiaries
 Name of the                                             (Rs in crores)
 Subsidiary Company       Ownership (StateBank   % of      Net Profit
                          interest)/crores      Ownership   for the 
 SBI Capital Markets 
 Limited (Consolidated)    58.03                100         334.10
 SBI DFHI Limited         139.15              63.78          92.55
 SBI Mutual Fund Trustee 
 Company Private Limited    0.10                100           0.94
 SBI Global Factors 
 Limited                  137.79              86.18         (46.23)
 SBI Pension Funds
 Private Limited           18.00                 60           1.99
 Name of the 
 Subsidiary Company          Ownership(StateBank   % of        Net Profit
                             interest)/crores      Ownership   for the 
 SBI Funds Management
  Private Limited             31.50                63          163.43
 SBI Cards & Payment 
 Services Private Limited    471.00                60          266.70
 SBI Life Insurance 
 Company Limited             740.00                74          820.04
 SBI-SG Global Securities 
 Services Private Limited     52.00                65            5.69
 SBI General Insurance 
 Company Limited             150.22                74         (105.33)
 GE Capital Business 
 Process Mgt. Services
 Private Limited              10.80                40           31.03
 SBICAP is India''s leading investment bank, offering financial advisory
 services to varied client base across three product groups -
 Infrastructure, Non- Infrastructure and Capital Markets (equity and
 Debt). These services include Project Advisory, Loan Syndication, M&A,
 Private Equity and Restructuring Advisory.
 On a standalone basis, SBICAP posted a PBT of Rs.507.90 crores during the
 FY2015 as against Rs.388.89 crores during the FY2014 and a PAT of Rs.338
 crores in FY2015 against Rs.265.47 crores in FY2014.
 SBICAP and its 5 subsidiaries together, posted a PBT of Rs.509.59 crores
 during the FY2015 as against Rs.389.65 crores during the FY2014 and PAT
 of Rs.334.10 crores during FY2015 as against Rs.262.37 crores in FY2014.
 SBICAP declared 430% dividend in FY2015 against Rs.260% in FY2014.
 As a leader in its space, SBICAP has attained recognition in the form
 of some of the most prestigious awards in the industry namely,
 - IFR Asia Regional Awards High Yield Bond - Tata Steel''s US.5
 billion dual -tranche senior notes.
 - Asiamoney - Regional Capital Markets Awards - Best High Yield Bond-
 Tata Steel $ 1.5 billion dual tranche senior bond.
 - No.1 Mandated Lead Arranger in Asia-Pac Ex-Japan Loans League Tables
 2014, with Market share of 8.4% as per Bloomberg.
 - No.1 Book Runner Asia-Pac ex-Japan Loans - market share 12.5% as per
 - No.1 India Loans Mandated Arranger (INR)- Markets Share 75.5% as per
 - In the India Loans MLA Tables SBI tops the list with market share of
 57.3% as per Bloomberg.
 - No.1 Book Runner Asia Pacific & Japan with market share of 14.6% as
 per PFI Thomson Reuters League table.
 - Ranked No.1 MLA with 7.2% market share in the Dealogic Global Project
 Finance League Laos rankings 2014.
 - No.1 MLA Asia Pacific Project Finance Loans (19.6%) as per Dealogic.
 - No.1 Asian Project Finance Loans with 28.9% market share as per
 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 etc.
 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 7.80 lakhs clients in March, 2015 . The Company has booked
 gross revenue of Rs.114.01 crores during FY2015 as against Rs.79.02 crores
 in FY2014.
 SSL was awarded appreciation certificates from National Stock Exchange
 of India for being a Top Performing Member in Gold ETF mobilization
 and New Client Enrollment.
 2. SBICAPS 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 sponsor the Neev Fund to be managed by SBICAP Ventures
 Limited SVL will act as the Asset Management Company.
 The 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).
 SUL is a wholly owned subsidiary of SBI Capital Markets Limited SUL is
 positioning itself as a relationship outfit 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.
 4. sbicap (Singapore) limited (ssgl)
 SSGL, a wholly owned subsidiary of SBI Capital Markets Limited, which
 commenced business with effect from December 2012. Company has posted
 Net Profit of Rs.7.51 crores during FY2015 as against Net loss of Rs. 2.81
 crores during FY2014.
 5. sbicap trustee co. LIMITED (STcL)
 SBICAP Trustee Co Ltd (STCL), a wholly owned subsidiary of SBI Capital
 Markets Limited, which commenced security trustee business with effect
 from 1st August 2008, has posted Net Profit of Rs.11.16 crores during
 FY2015 as against Rs.8.81 crores during FY2014. It has made available a
 facility for online creation of will.
 SBI DFHI Ltd 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.92.55 crores in FY2015 as against Rs.60.70 crores in FY2014.
 The market share of SBI DFHI was 3.03% amongst all market participants
 and 16.18% amongst Standalone PDs as on March, 2015.
 c. SBI cards & payments services private LIMITED (SBicPSL)
 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 31.58 lakhs as at March, 2015 as
 compared to 15% market share with a base of 28.58 lakhs as at March,
 2014. Company has 11.2% market share in terms of spends in FY2015
 against 11% in FY2014.
 The company''s net profit during the year FY2015 is Rs.266.70 Crores.
 Company has wiped out its accumulated losses and declared dividend in
 FY2015. SBI Card launched SytleUP Card, a new Co-branded Card in
 partnership with Fashion at Big Bazaar (A Future Group Enterprise) in
 December, 2014 and Mumbai Metro Card in March, 2015.  SBI Cards has
 been awarded Gold in the category Credit Cards in the Readers Digest
 Trusted Brand Survey 2015.
 d. Sbi Life Insurance Company
 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.
 Market share in New Business Premium (NBP) among all private players as
 on March, 2015 is 15.9%. SBI Life recorded 10.81% YOY increase in PAT
 to Rs.820 crores in FY2015 against Rs.740 crores in FY2014. The ''Assets
 under Management'' of SBI Life recorded a YOY growth of 21.99% to reach
 Rs.71,339 crores as on 31st March 2015.  The company has been ranked No.
 1 in the industry in (NBP) during FY2015 among all Private Insurance
 Leveraging wider reach achieved through its 750 branch network, SBI
 Life has systematically brought large rural areas under insurance. The
 company has sold 22% of total policies in this segment in FY2015. A
 total of 65,745 lives covered by the company are from the
 underprivileged social sector. The Company has been substantially
 exceeding the minimum social and rural regulatory norms.
 In FY2015, SBI Life reinforced its outreach initiatives in the realm of
 child welfare, across different parts of the country, in line with its
 approved CSR goals. The company has extended its support to nurture not
 only the educational aspirations of the children but also providing for
 their physical well-being. Significant measures have been taken to aid
 the provision of better infrastructure and healthcare facilities to
 remote areas of the country to ensure that all sections of the society
 gets an equal opportunity to sustain them in a healthy environment.
 Awards and recognitions
 - Best Training Provider of the Year.
 - Best Practice in Learning Transfer for Improving Business Bottom
 - Plaque for commended Annual Report from Institute of Chartered
 Accountants of India (ICAI) for Excellence in Financial Reporting, 2013
 - 3 Awards at World HRD Congress 2015.
 - Award for Excellence in HR through Technology .
 - Award for Best HR Strategy in line with business .
 - Award for Managing Health at work .
 - FINNOVITI - Digital Innovation Award for Connect Life.
 - Inspiring Wok Place Award 2014 in BFSI.
 - ''Platinum Award for Excellence in Life Insurance'' by Skoch Financial
 Inclusion and Deepening Awards 2014.
 - Indian Insurance Awards 2014 for ''Non-Urban Coverage-Life Insurance''.
 - Best Life Insurance Company Award by Asia Banking, Financial Services
 and Insurance Excellence 2014.
 - The Most Admired Life Insurance Company and the Best Life Insurance
 Company in the Private Sector, in the BFSI 2014 Awards.
 - Most Trusted Private Life Insurance Brand by The Economic Times,
 Brand Equity and Nielsen Survey for four consecutive years.
 - Golden Peacock National Training Award, 2014.
 - Innovation Awards by BNP Paribas Cardif for ''Online Recruitment
 Solutions'' and for ''Creating New Markets using existing products:
 These awards are a testimony to SBI Life''s quality and commitment
 towards customer centricity and professional excellence
 While the focus at SBI Life during FY2014 was to revamp entire product
 portfolio to comply to revised IRDAI regulations; in FY2015, it shifted
 back to designing specific products to cater to the changing market
 requirements.  To fill these gaps and to provide products as per
 customer needs, SBI Life introduced various products such as: SBI Life
 - Guaranteed Savings Plan, a guaranteed income plan; SBI Life - Smart
 Income Protect, life insurance savings plan with regular cash inflows:;
 SBI Life - Smart Champ Insurance, a child insurance plan and SBI Life -
 Suraksha Plus, a group term insurance plan.
 SBIFMPL, the Asset Management Company of SBI Mutual Fund, is the 6th
 largest Fund House in terms of Average Assets Under Management and a
 leading player in the market with over 4 million investors.
 SBIFMPL posted a PAT of Rs.163.43 crores in FY2015 as against Rs.155.57
 crores earned during FY2014.
 The average Assets Under Management (AUM) of the company during the
 quarter ended March, 2015 stood at Rs.72,942 crores with market share of
 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.
 f. sbi global factors limited
 SBIGFL is a leading provider of factoring services for domestic and
 international trade. SBI group 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.
 Notwithstanding challenges in growing top line and improving asset
 quality in the prevailing economic slowdown, the Company registered an
 operating profit of Rs.49.78 crores during FY2015.
 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, 2015 were Rs.31,407 crores (YOY growth of 69 %)
 against Rs.18,624 crores in FY2014.
 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 73 %, while in the
 Government sector it was 35 %. The company maintained its number 1 rank
 in both Private Sector and Government Sector.
 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, fair and transparent claims management practices.
 The cornerstone of the company''s growth aspiration will be focussed on
 the banca channel whilst selectively developing alternate channels and
 products that meet our business objectives.
 Gross Written Premium (GWP) stood at Rs.1580 crores for FY2015. Company
 recorded 33% growth in GWP YOY against an industry growth of 9%.
 Overall market share among all insurance companies (including Govt
 companies) increased from 1.5% to 1.9% and in 3.5% to 4.1% among
 private players.
 Improved in market ranking - overall to 13th from 18th in FY 2014 and
 to 8th in FY2015 from 12th among the private players.
 SBIGIC occupies 2nd position in Personal Accident at an overall
 industry level and 2nd position in Fire among Private Insurers.
 awards and recognitions
 - Winner - iCMG (inter Company Marketing Group) Excellence Award for
 Enterprise Architecture in 2014.
 - Runner-up - IAIDQ Data Quality Asia Pacific Award 2014.
 - iAAA rating from ICRA for claim paying ability.
 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.
 Company''s Net profits in Rs.5.69 crores in FY2015 as against Rs.0.21 crore
 in FY2014.
 The Assets Under Custody as on 31st March, 2015 rose to Rs.169,587 crores
 as against Rs.1,15,701 crores on 31st March 2014, while the Assets Under
 Administration were at Rs.79,090 crores in FY2015 as against Rs.62,901
 crores in FY2014.
 Responsibility Statement
 The Board of Directors hereby states:
 i. that in the preparation of the annual accounts, the applicable
 accounting standards have been followed along with proper explanation
 relating to material departures;
 ii. that they have selected such accounting policies and applied them
 consistently and made judgements and estimates as are reasonable and
 prudent, so as to give a true and fair view of the state of affairs of
 the Bank as on the 31st March 2015, and of the profit and loss of the
 bank for the year ended on that date;
 iii. that they have taken proper and sufficient care for the
 maintenance of adequate accounting records in accordance with the
 provisions of the Banking Regulation Act, 1949 and State Bank of India
 Act, 1955 for safeguarding the assets of the Bank and preventing and
 detecting frauds and other irregularities;
 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 the 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, Shri Hemant G. Contractor and Shri S. Vishvanathan,
 Managing Directors, retired on attaining superannuation on 30th April,
 2014. Shri Deepak I. Amin nominated u/s 19(d) by the Government has
 resigned from the Board w.e.f. 8th May, 2014. Sarvashri S.
 Vankatachalam, D. Sundaram, Parthasarathy Iyengar and Thomas Mathew
 retired from the Board w.e.f. 24th June, 2014 consequent upon
 completion of their term. Shri G. S. Sandhu retired from the Board
 w.e.f. 10th November, 2014. Shri J. B. Mohapatra retired from the Board
 w.e.f. 21st November, 2014 consequent upon completion of his term. Shri
 A. Krishna Kumar, Managing Director, retired from the board w.e.f. 30th
 November, 2014 consequent upon superannuation.
 Shri Sanjiv Malhotra, Shri M. D. Mallya, Shri Sunil Mehta and Shri
 Deepak I. Amin were elected as Shareholder Directors under section
 19(c) w.e.f. 26th June, 2014. Shri B. Sriram and Shri V. G. Kannan were
 appointed as Managing Directors under section 19(b) w.e.f. 17th July,
 2014 on the Board. Dr. Hasmukh Adhia was nominated as Director under
 section 19(e) on the Board w.e.f. 11th November, 2014.
 The Directors place on record their appreciation of the contributions
 made by the respective outgoing Directors, namely, Shri Hemant G.
 Contractor, Shri S. Vishvanathan, Shri S. Venkatachalam, Shri D.
 Sundaram, Shri Parthasarathy Iyengar, Shri Thomas Mathew, Shri J. B.
 Mohapatra, Shri G. S. Sandhu and Shri A. Krishna Kumar, to the
 deliberations of the Board. The Directors welcome the new Directors
 Shri Sanjiv Malhotra, Shri M. D. Mallya, Shri Sunil Mehta, Shri Deepak
 I.  Amin, Shri B. Sriram, Shri V. G. Kannan and Dr. Hasmukh Adhia on
 the Board.
 The Directors also express their gratitude for the guidance and
 co-operation received from the Government of India, RBI, SEBI, IRDA and
 other government and regulatory agencies.
 The Directors also thank all the valued clients, shareholders, banks
 and financial institutions, stock exchanges, rating agencies and other
 stakeholders for their patronage and support, and take this opportunity
 to express their appreciation of the dedicated and committed team of
 employees of the Bank.
                                             For and on behalf of the 
                                             Central Board of Directors
 Date: 22nd May 2015                         Chairman
Source : Dion Global Solutions Limited
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