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
(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
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
RESTRUCTURING OF ASSETS
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.
CONTROLLING FRESH ACCRETION TO 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.
IMPROVING RESOLUTION OF NPAS
- 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
- 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
- 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
- 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
- Publishing photographs of defaulters in newspapers
- 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
INITIATIVES TAKEN TO CLAMP DOWN ON NPAs
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
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
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
- 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
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
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
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
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.
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
- 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.
3. TREASURY OPERATIONS
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%
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
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.
1. HUMAN RESOURCES
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
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.
EMPLOYEE ENGAGEMENT :
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.
STATUS ON SEXUAL HARASSMENT OF WOMEN AT WORKPLACE :
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
AWARDS AND ACCOLADES:
- 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
2. STRATEGIC TRAINING UNIT (STU)
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 OF VISUALLY IMPAIRED (VI) AND HEARING Impaired (HI) employees
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.
PRINCIPLES THAT DRIVE LEARNING ACTIVITIES:
- 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
- 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.
NEW INITIATIVES TAKEN:
- 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
- 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
- Revamped onboarding and induction training of new recruits, with
- 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
3. RISK MANAGEMENT AND INTERNAL CONTROLS
(A) RISK MANAGEMENT
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
NEW INITIATIVES IN RISK MANAGEMENT:
- 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
- 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,
- 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
- 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
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)
(B) INTERNAL CONTROLS
The Bank has in-built internal control systems with well-defined
responsibilities at each level. It conducts internal audit through its
Inspection & Management Audit Department. Audit Committee of the Board
(ACB) exercises supervision and control over the functioning of the I &
MA Department. The inspection system plays an important and critical
role in identification, control and management of risks through the
internal audit function, which is regarded as one of the most important
components of 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
RISK FOCUSED INTERNAL CONTROL AUDIT
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
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.
INFORMATION SYSTEM AUDIT
All Branches are being subjected to Information System (IS) Audit to
assess the IT related risks as part of RFIA of the branch. IS Audit of
centralised IT establishments is carried out by a team of qualified
officials/ outside experts. During FY2015, IS audit of 38 centralised
IT establishments were completed.
FOREIGN OFFICE AUDIT
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
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.
EARLY SANCTION REVIEW [ESR]
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.
OFF-SITE TRANSACTION MONITORING SYSTEM (OTMs)
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.
4. INFORMATION TECHNOLOGY
A. CORE BANKING PROJECT
CBS environment has been benchmarked to support one billion accounts,
over 250 million transactions in a day, and delivering a throughput of
over 17,000 transactions per second. Biometric authentication as a
second-factor authentication has been implemented in branches for all
CBS users. The process for the systematic and proactive risk
identification, assessment, measurement, monitoring and mitigation of
various risks in the IT vertical has been initiated.
Exhibit 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
CASH DEPOSIT MACHINES (CDMs)
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
B. iNB & E-COMMERCE
The Bank''s online banking platform onlinesbi.com 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
- 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 - FOREIGN OFFICES
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
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
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.
ENTERPRISE DATA WAREHOUSE
(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.
PAYMENT SYSTEM GROUP (PRE-PAID CARDS)
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
CORPORATE WEB AND MAIL SERVICES
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
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.
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.
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.
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.
SBI HOLIDAY CALENDAR:
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
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
Payment Systems 2014
Finnoviti 2015 Analytics at SBI January,
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,
5. BuSiNESS PRocESS RE-ENGiNEERiNG
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
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
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
7. OFFiCiAL LANGUAGE
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
8. CORPORATE SOCiAL RESPONSiBiLiTY (CSR)
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/
CATEGORY WISE Classification:
Exhibit 42: Category wise Classification
Category Amount(Rs in crores)
Supporting Healthcare 28.56
Supporting Education 41.20
Vocational training/Livelihood 24.24
Natural calamities 4.00
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
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
ASSISTANCE DURING NATURAL CALAMITIES
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.
HONOURS AND AWARDS: SCALING NEW HEIGHTS Of ACCOLADE For CSR
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.
THE COVETED AWARDS INCLUDE:
- 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
- BFSI '' Environmental Award, Singapore - CMO Asia Award for Best CSR
Practices, Mumbai - Business World Magazine ''Socially Responsible Bank''
- 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
- 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
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
State Bank of Bikaner 676.12 75.07 102302 83237
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
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
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
A. SBI CAPITAL MARKETS LiMiTED (SBiCAP)
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
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).
3. SBICAP (UK) LIMITED (SUL)
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.
B. SBI DFHI LIMITED (SBI DFHI)
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.
E. SBI FUNDS MANAGEMENT PRiVATE LiMiTED (SBIFMPL)
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.
G. SBI PENSION FUNDS PRIVATE LiMiTED (SBIPF)
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.
H. SBI GENERAL INSURANCE COMPANY LIMITED (SBIGIc)
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
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
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.
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 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