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Download Annual Report PDF Format 2013 | 2012 | 2011
Directors Report Year End : Mar '13    Mar 12
Financial Performance 
 
 Profit
 
 The Operating Profit of the Bank for 2012-13 stood at Rs. 31,081.72
 crores as compared to Rs. 31,573.54 crores in 2011-12 registering a
 marginal decline of 1.56%. The Bank has posted a Net Profit of Rs.
 14,104.98 crores for 2012-13 as compared to Rs. 11,707.29 crores in
 2011-12 registering a growth of 20.48%.
 
 While Net Interest Income recorded a growth of 2.40%, the Other Income
 increased by 11.73%, Operating Expenses increased by 12.33%
 attributable to higher staff cost and other expenses.
 
 Net Interest Income
 
 The Net Interest Income of the Bank registered a growth of 2.40% from
 Rs. 43,291.08 crores in 2011-12 to Rs. 44,331.30 crores in 2012-13.
 This was due to higher growth in the advances and investment
 portfolios.
 
 The gross interest income from global operations correspondingly rose
 from Rs. 1,06,521.45 crores to Rs. 1,19,657.10 crores during the year
 registering a growth of 12.33%.
 
 Interest income on advances in India registered an increase from Rs.
 77,309.15 crores in 2011-12 to Rs. 85,782.26 crores in 2012-13 due to
 higher volumes.  The average yield on advances in India has declined
 from 11.05% in 2011-12 to 10.54% in 2012-13. Interest income on
 advances at foreign offices has grown by 26.17%.
 
 Income from resources deployed in treasury operations in India
 increased by 13.82% mainly due to higher average resources deployed.
 The average yield, which was 7.51% in 2011-12, has increased to 7.54%
 in 2012-13.
 
 Total interest expenses of global operations increased from Rs.
 63,230.37 crores in 2011-12 to Rs. 75,325.80 crores in 2012-13.
 Interest expenses on deposits in India during 2012-13 recorded an
 increase of 20.88% compared to the previous year, whereas the average
 level of deposits in India grew by 14.3%. The average cost of deposits
 has consequently increased from 5.95% in 2011-12 to 6.29% in 2012-13.
 
 Non-Interest Income
 
 Non-interest income stood at Rs. 16,034.84 crores in 2012-13 as against
 Rs. 14,351.45 crores in 2011-12 registering an increase of 11.73%.
 
 During the year, the Bank received an income of Rs. 715.51 crores (Rs.
 767.35 crores in the previous year) by way of dividends from Associate
 Banks/ subsidiaries and joint ventures in India and abroad.
 
 Operating Expenses
 
 There was an increase of 8.29% in the Staff Cost from Rs. 16,974.04
 crores in 2011-12 to Rs. 18,380.90 crores in 2012-13. Other Operating
 Expenses registered an increase of 19.89% mainly due to increase in
 expenses on rent, taxes and lighting, advertisement & publicity, law
 charges, postage, telegrams & telephones, insurance and miscellaneous
 expenditure.
 
 Operating Expenses, comprising both staff cost and other operating
 expenses, have registered an increase of 12.33% over the previous year.
 
 Provisions and Contingencies
 
 Major amounts of provisions made in 2012-13 were as under:
 
 - Rs. 961.29 crores write back from provisions for depreciation on
 investments, excluding amortization of premium on Held to Maturity
 category (as against Rs. 663.70 crores provided towards depreciation on
 investments in 2011-12).
 
 - Rs. 5,953.88 crores towards Provision for Tax, excluding deferred
 tax creation of Rs. 107.97 crores (as against Rs. 6,320.09 crores in
 2011-12 excluding deferred tax reversal of Rs. 455.93 crores).
 
 - Rs. 11,367.79 crores (net of write-back) for non- performing assets
 (as against Rs. 11,545.85 crores in 2011-12).
 
 - Rs. 749.61 crores towards Standard Assets (as against Rs. 978.81
 crores in 2011-12). Including the current years provision, the total
 provision held on Standard Assets amounts to Rs. 5,289.58 crores.
 
 Reserves and Surplus
 
 - An amount of Rs. 4,417.86 crores (as against Rs. 3,516.98 crores in
 2011-12) was transferred to Statutory Reserves.
 
 - An amount of Rs. 19.17 crores (as against Rs. 14.38 crores in
 2011-12) was transferred to Capital Reserve Fund.
 
 - An amount of Rs. 6,453.26 crores (as against Rs. 5,536.50 crores in
 2011-12) was transferred to other Reserve Funds.
 
 Table 1: Key Performance Indicators
 
 Indicators                                 SBI           SBI Group
 
                                  2011-12    2012-13   2011-12   2012-13
 
 Return on Average Assets (%)        0.88       0.91      0.89      0.89
 
 Return on Equity (%)               16.05      15.94     16.49     15.97
 
 Expenses to Income (%)
 (Operating Expenses to
 Total Net Income)                  45.23      48.51     53.51     56.35
 
 Book Value per share (Rs.)       1214.78    1394.79   1540.64   1769.19
 
 Basic Earnings Per Share (Rs.)    184.31     210.06    241.55    266.82
 
 Diluted Earnings Per Share (Rs.)  184.31     210.06    241.55    266.82
 
 Capital Adequacy Ratio (%) 
 (Basel-I)                          12.05      11.22     11.84     11.07
 
 Tier I                              8.50       8.23      8.30      8.10
 
 Tier II                             3.55       2.99      3.54      2.97
 
 Capital Adequacy Ratio (%) 
 (Basel-II)                         13.86      12.92     13.68     12.82
 
 Tier I                              9.79       9.49      9.65      9.46
 
 Tier II                             4.07       3.43      4.03      3.36
 
 Net NPAs to Net Advances (%)        1.82       2.10      1.81      2.07
 
 Assets
 
 The total assets of the Bank increased by 17.28% from Rs. 13,35,519.23
 crores at the end of March 2012 to Rs. 15,66,261.04 crores as at the
 end of March 2013.  During the period, the loan portfolio increased by
 20.52% from Rs. 8,67,578.89 crores to Rs. 10,45,616.55 crores.
 Investments increased by 12.41% from Rs. 3,12,197.61 crores to Rs.
 3,50,927.27 crores as at the end of March 2013. A major portion of the
 investment was in the domestic market in government securities.
 
 Liabilities
 
 The Banks aggregate liabilities (excluding capital and reserves) rose
 by 17.24% from Rs. 12,51,568.03 crores on 31st March 2012 to Rs.
 14,67,377.36 crores on 31st March 2013. The increase in liabilities was
 mainly contributed by increase in deposits and borrowings.  The Global
 deposits stood at Rs. 12,02,739.57 crores as on 31st March 2013 against
 Rs. 10,43,647.36 crores as on 31st March 2012, representing an increase
 of 15.24% over the level on 31st March 2012. The borrowings increased
 by 33.21% from Rs.  1,27,005.57 crores at the end of March 2012 to Rs.
 1,69,182.71 crores as at the end of March 2013 mainly attributable to
 borrowings from RBI in India and borrowings & refinance outside India.
 
 
 I CORE OPERATIONS
 
 I.  1. Customer Service
 
 Our vision statement unambiguously spells out the centricity of the
 customer in the Banks business strategies and operations. A
 multi-tiered structure of committees constantly review existing
 services and suggest improvements. Important issues raised by these
 Committees and action taken thereon, as well as analysis of the
 consolidated data for customer grievances for all Circles are placed
 before the Customer Service Committee of the Board every quarter, to
 identify common systemic and policy issues that require rectification.
 
 The Bank has a well defined and documented Grievance Redressal Policy
 which provides for:
 
 - A dedicated Customer Care Cell
 
 - Banks Web based Complaint Management System (CMS) has been
 redesigned and launched as a single online Grievance Lodging and
 Redressing System for the Bank. Customers can lodge their complaints
 through various channels including written complaint at branch, by
 calling at the toll free number of Banks Contact Centre 1800 425 3800
 / 1800 11 22 11, online through Banks website www.sbi.co.in, sending
 SMS message UNHAPPY to number 8008 202020 etc. All complaints are
 lodged through CMS and are acknowledged with a unique ticket number
 immediately on lodging. Bank has mandated and has been able to redress
 a majority of the customer grievances within a maximum period of three
 weeks of receipt, as against the time limit of 30 days prescribed in
 the BCSBI Code.  All ATM related complaints of Bank customers are
 redressed within the RBI-prescribed 7 days.
 
 - While the Bank strives to achieve the highest standards in customer
 service, it has also put in place a Board approved Compensation Policy
 to compensate the customer financially in the unlikely event of any
 slippage in services extended.  The Policy ensures that the aggrieved
 customer is compensated without having to ask for it.
 
 - Over 70% of the recommendations of the Damodaran Committee have
 already been implemented.
 
 - Suitable structure has been put in place at the Branches, Regional
 Business Offices, Local Head Offices, Administrative offices and at the
 Corporate Centre of the Bank for handling requests and appeals under
 the RTI Act 2005, Consumer Forums, etc.
 
 Customer Friendly Initiatives
 
 During 2012-2013, in the backdrop of slowing investment/consumption/net
 exports, constrained food production, high inflation, distress in
 several industry and infrastructure sectors-textile, chemicals, iron
 and steel, food processing, construction, telecom- major initiatives
 were taken by your Bank towards catalyzing investment & growth, to
 facilitate the flow of credit to critical sectors of the economy
 including agriculture, infrastructure, micro, small & medium
 enterprises, housing, exports, and with a view to reducing customer
 distress/pain points & raising levels of customer satisfaction. These
 initiatives include:
 
 - Pricing concessions
 
 - Interest rates Base rate was twice reduced during the year from 10%
 to 9.75% as on 20/9/2012, and then again to 9.70% as on 4/2/2013, the
 lowest amongst all banks and so pegged, to bring relief to all
 borrowers, particularly SME units, home loan borrowers, who continued
 to enjoy the lowest home loan interest rates, and commercial real
 estate accounts, which were aligned with the prevailing retail housing
 loans in terms of interest rates.
 
 - Guarantee fees were absorbed by the Bank, both for exporters( ECGC
 fees) and fees payable by MSE units to CGTMSE for guarantee cover on
 collateral free loans upto Rs. 1 crore.
 
 - Process innovations
 
 - Relationship management platform was strengthened across business
 verticals-Accounts Management teams for corporates, premier banking
 services for high networth customers, relationship managers for SMEs
 (ME&SE)
 
 - The number of processing cells(RACPCs/ SMECCs), supported by loan
 origination software, were increased and revamped, for quicker
 processing of loans
 
 - Touch-points with customers were expanded, through opening of
 branches and increasing Customer Service Points, BC outlets in remote
 areas
 
 - Cluster models were introduced at all currency chest branches for
 efficient cash management at semi-urban/rural areas
 
 - A dedicated wing was created in all processing cells to monitor NPA
 accounts
 
 - Product changes
 
 - We have a great CASA franchise and savings bank accounts form the
 bulwark. The savings bank account is normally the first on-board
 facility availed by a customer and the referral point for all future
 services from the Bank. To preserve and enhance the value of our
 savings bank offering, your Bank introduced the following initiatives
 during the year :
 
 - Minimum balance in savings account was done away with.
 
 - The penalty on non-maintenance of Average Quarterly Balance stands
 withdrawn.
 
 - The inter-core transfer transactions have been made free, and cash
 deposit minimum charges were reduced from Rs. 25 to Rs. 10.
 
 - Introduction of Personal Accident Insurance Policy for all savings
 bank account holders at a nominal rate received tremendous response.
 
 - Proactively, providing CTS-2010 compliant multi- city cheque- books
 benefited all our customers
 
 - Unfixed Deposits scheme applicable to term deposits of 6 months was
 extended to term deposits upto one year.
 
 - A new tractor loan scheme with relaxations in eligibility, margin,
 security, interest & upfront fee was launched. Also a revised KCC
 scheme was rolled out for the benefit of farmers. Relaxed collateral
 security norms for all agri loans upto Rs.1 lac was introduced.
 
 - SBI loan scheme for Vocational Education & Training was launched
 while loan amount for studies abroad was raised to Rs. 30 lacs
 
 - Technology upgrades
 
 - SBI through CMP Centre was the first Bank to use NPCI Aadhar
 Payment Bridge System (APBS) for transferring LPG subsidy based on
 Aadhar Number.
 
 - The Bank launched an Online Savings Bank Application facility and
 e-RD,TDR/STDR accounts which evoked enthusiastic response from the
 customers. Issuance of TDR/STDR through ATMs have been operationalised.
 
 - Centralised printing and mailing of current account/oD/Cash credit
 statements, housing loan interest certificates, deposit accounts
 certificates to enhance customer convenience, were initiated during the
 year
 
 - The Bank issued a series of new plastic cards for the convenience
 of their target groups, e.g State Bank Business debit card for
 corporate customers in two variants-Pride & Premium, Insta Deposit
 cards enabling traders & service providers to quickly deposit cash,
 State Bank Virtual Card for retail customers
 
 - State Bank MobiCash Easy, a mobile wallet, was introduced during
 the year
 
 - E-challan cum return for collection of Employees Provident fund,
 through branches and corporate internet, commenced during the year.
 
 I.2. BUSINESS GROUPS
 
 A.  GLOBAL Markets OPERATIONS
 
 Global Markets Unit manages the Banks rupee liquidity, compliance with
 reserve requirements and investment portfolio of the Bank besides
 offering a wide range of foreign exchange and hedging products to the
 customers. It also offers portfolio management services to large
 retirement funds. It constantly endeavors to keep liquidity at the
 optimum level while maximizing the returns.
 
 During the year the Reserve Bank of India reduced Cash Reserve Ratio by
 0.75% and Statutory Liquidity Ratio by 1%. The Bank therefore had ample
 liquidity during the year. This offered the Bank opportunities to
 invest in short term money market instruments like Commercial Papers
 (CPs) and Certificate of Deposits (CDs). Bank invested over Rs. 75,000
 Crores in CDs and CPs at an average spread of 65 to 75 basis points
 (BPs) over applicable yield on Treasury Bills, thereby earning
 additional interest income.
 
 The yield on Government securities declined during the year responding
 to the Repo rate cuts of 100 BPs by the RBI and moderation in
 inflation.  Yield on the benchmark 10 year Central Government
 securities declined from 8.63% in April 2012 to 7.99% by 31st March
 2013.  This reduction in yield offered opportunities for churning the
 SLR portfolio of the Bank.
 
 We booked more than Rs. 200 Crores from active management of the
 portfolio. Despite a fall of 64 BPs in yield on Government Securities,
 the return on SLR portfolio was only marginally lower by 5 basis
 points, because of dynamic rebalancing of the portfolio.
 
 As the yields were in a declining trend, the Bank decided to increase
 duration of the portfolio. The Bank purchased long dated Securities of
 over Rs.  35,000 Crores of Central and State Governments. The Bank also
 invested in high yielding corporate bonds aggregating to more than Rs.
 10,000 Crores during the year. The gross corpus of funds under the
 management of Global Markets was close to Rs. 4 lac Crores as on 31st
 March 2013.
 
 Equities witnessed a turnaround this year led by improved economic
 situation in the USA, reduced stress in Eurozone, pro-reform measures
 of the Indian Government as well as rate cuts by the RBI. While the
 Bank remains invested in multiple strategic positions, Global Markets
 increased proprietary trading in Nifty stocks. The Bank also used
 Mutual fund schemes for liquidity management and higher returns. The
 Bank made a profit of about Rs. 600 Crores from Equity and Mutual
 Funds.
 
 The Bank continued to explore opportunities in the area of private
 equity and venture capital fund investments. During the year,
 investments of Rs. 100 Crores were made in different venture capital
 funds.  Bank also partially exited from one of the private equity
 investments during FY13 resulting in a profit in excess of Rs. 50
 Crores at an IRR of more than 45.25%. Due to favorable valuations and
 market conditions, Bank also exited from another strategic investment
 resulting in a profit of Rs. 65 Crores. The Bank also participated in
 the primary market and disinvestment programme of the Government of
 India through Offer For Sale (OFS) route by investing about Rs. 1,300
 Crores.
 
 Global Markets provides foreign exchange solutions to the customers in
 all currencies for managing their currency flows and hedging risks
 through options, swaps, forwards and bullion services. Given the large
 presence across the country, the Bank provides a world class technology
 platform to seamlessly process currency flows between its customers
 through branches and the dealing room. This is part of our continuous
 endeavour to provide enhanced services to our customers. The Treasury
 Marketing outfits complement this by engaging with customers to provide
 them with inputs about markets and suggest products to suit their
 requirements. The Bank earned income of over Rs. 1600 Crores from
 covering the customer flows in foreign exchange, hedging, gold, and
 proprietary trading, registering an increase of 18%. Global Markets
 also manages FCNR(B) corpus of the Bank and provides funds for Export
 Finance in Foreign Currency and FCNR(B) loans.
 
 The Bank was also ranked number one in the Best for FX options and
 Best for FX Products and Services categories and number two in the
 Best for FX Research & Market Coverage category in the same poll.
 These help us to consistently improve our service to our esteemed
 customers.
 
 The Bank provides portfolio management services to an array of
 retirement funds in the country consistently giving better returns. The
 Portfolio Management Services section, with an AUM of over Rs. 2,38,000
 Crores, has consistently outperformed private sector peers in
 generating returns for the EPFO funds. Last year, the bank was adjudged
 the best fund manager for EPFo.
 
 B. CORPORATE BANKING GROUP (CBG)
 
 The Banks Corporate Banking Group consists of three Strategic Business
 units viz. Corporate Accounts Group, Transaction Banking Unit and
 Project Finance & Leasing SBu.
 
 B.1. Corporate Accounts Group (CAG)
 
 CAG is the dedicated SBU for handling the large credit portfolio of the
 Bank. The SBU has Offices in 6 regional centers viz. Mumbai, Delhi,
 Chennai, Kolkata, Hyderabad and Ahmedabad headed by General Managers.
 The business model of CAG is centered around the Relationship
 Management concept and each client is mapped to a Relationship Manager
 who spear-heads a cross-functional Client Service Team.  The
 Relationship strategy is anchored on delivering integrated and
 comprehensive solutions to the clients, including structured products,
 within a strict Turn- Around-Time. The principal objective of the
 strategy is to make SBI the first choice of the top corporates thereby
 deepening the wallet-share and improving the Return on Capital
 Employed. A sustained Account Planning exercise with rigorous review by
 senior management sets the pace for the Relationship Management in CAG.
 
 Table 2: Business Performance of CAG            (Rs. in cr)
 
 Facility                         Mar-12       Mar-13      YoY Growth
 
 Fund Based (O/s)                 125286       175831        40%
 
 Non Fund Based (Vol)             337486       409477        21%
 
 While the Fund Based outstandings of CAG constitute 16% of total credit
 portfolio of the Bank, CAG also handles about 59% of the domestic forex
 business of the Bank. During the year, CAG handled several high value
 deals for clients such as Essar Oil, HDFC, Hindalco Industries, Essar
 Steel, Power Grid Corporation, DVC, JSW Energy etc.
 
 In an environment of depreciating Rupee, several CAG clients prefer to
 borrow in foreign currency.  Significant International business is thus
 originated from CAG clients like PSU Oil Majors and groups such as
 Tata, Reliance, Essar, Adani, JSW, etc. In the highly competitive area
 of Acquisition Funding also, CAG has registered a strong presence
 through deals such as Hindujas acquisition of Houton International
 Inc, USA and B C Jindal groups acquisition of Exxon Mobils global
 BOPP business.
 
 The Asset quality of CAG remained well under control with the Gross
 NPAs at 0.57% of total advances. About 87% of CAGs portfolio is
 investment grade with 40% carrying the highest rating from the External
 Credit Rating Agencies.
 
 In the backdrop of the robust growth of CAG, it is proposed to open
 additional Offices in major centres beginning with Mumbai and Delhi.
 All CAG Offices are now headed by General Managers in line with the
 rising business profile of the Group and to facilitate interaction at
 senior level with due regard to the high profile of the CAG clients.
 Keeping in view the critical importance of the delivery platform, the
 incumbency of the Chief Operating Officer has also been upgraded to the
 level of Dy. General Manager in all CAG units.
 
 B.2. Transaction Banking Unit (TBU)
 
 TBU oversees Cash Management Products, Trade Finance and Supply Chain
 (Dealer / Vendor) Finance and has expanded its activity during the last
 three years.
 
 - Cash Management Product (CMP)
 
 Collection services in the Bank are now offered through 1219 authorized
 branches located at 722 Centres.  Besides usual cheque and cash
 collections, Doorstep Banking for cash / cheque pickup and collections
 for Public Issues (IPO/Bonds), are being handled by CMP. Payment
 services comprising Dividend Warrants, Multi City Cheques, IOIs and
 e-payment are extended through all branches. CMP Centre has integrated
 the State Government Payments Systems with the Core Banking Solution of
 the Bank providing Centralized Payment Solutions to the State
 Governments in their ambitious National e-Governance Project (NeGP).
 SBI was the first Bank to use NPCI Aadhar Payment Bridge System (APBS)
 for transferring LPG subsidy based on Aadhar Numbers.
 
 - e-Trade SBI, a web-based portal, to enhance customer comfort and
 provide easy access to trade finance services, by enabling customers to
 lodge Letters of Credit, Bank Guarantees and Bills Collection/
 negotiation requirements online from any corner of the world has been
 well received, with 1326 Corporates registered under e-Trade SBI as on
 31.03.2013 and more than 11000 transactions per month through e-Trade
 platform.
 
 - e-VFS ( Electronic Vendor Financing Scheme) & e-DFS ( Electronic
 Dealer Financing Scheme) are fully automated and secured products,
 designed to ensure efficient management of working capital cycle of the
 corporates and sustained growth and profitability of business partners.
 
 - Financial Institutions Business Unit (FIBU), a dedicated vertical
 created for capturing potential business opportunities from financial
 institutions, has been able to bring on board 15 Insurance Companies,
 26 Mutual Fund Companies, 45 NBFCs and 15 Banks.
 
 B.3. Project Finance & Leasing SBU (PFSBU)
 
 PFSBU deals with the approval and arrangement of funds for large
 projects in infrastructure sectors like power, telecom, roads, ports,
 airports, other urban infrastructure as also other non-infrastructure
 projects in sectors like metals, cement etc., with certain threshold on
 minmum project cost.
 
 Table 3 : Business Performance of PFSBU             (Rs. in cr.)
 
                                 2011-12        2012-13
 
 Project Cost                     109293         166299
 
 Project Debt                      84858          88033
 
 Sanctioned Amount                 24976          24119
 
 Syndication Amount                18160          33454
 
 As on 31.03.2013, t he portfolio of infrastructure projects under
 implementation with PFSBU involves Power projects with aggregate
 capacity of 52,862 MW; Telecom Projects serving 303 million
 subscribers; Road projects covering 5,386 kms; new Ports to handle 40
 MTPA multi-purpose cargo and 1.2 million TEU of container capacity;
 Metro project in Hyderabad besides a host of projects in steel, cement,
 Urban Infra, CRE etc. During the year, a total (FB + NFB) of Rs.12,884
 crores (Rs.15,410 crores in FY 12) were disbursed to these projects.
 
 Table 4: major deals during 2012-13:
 
 Project                     Details
 
 Tata Steel Odisha           Integrated Steel Plant of 6 mio TPA 
                             capacity.
 
 ONGC                        Greenfield Petro-Chemical Plant
 Petro-additions             of 1100 KTPA of ethylene and 400 KTPA 
                             of propylene.
 
 Jindal Power                Setting up Thermal Power Plant of 1200 
                             MW capacity.
 
 Videocon                    Term loan refinance and SBLC
 Industries                  for Mozambique Oil operations. The deal 
                             won the Business World Magna best
                             structured deal of the year award.
 
 The Bank has constituted a panel of 21 eminent Consultants who are
 former CEOs/ Directors of leading PSUs with domain expertise in various
 important sectors. The expert panel has significantly enhanced the
 capability of PFSBU in evaluating the techno- economic feasibility of
 projects in critical sectors like Power, Oil Refining, Metals,
 Fertilizers, Telecom etc.
 
 C.  mid corporate group
 
 Mid Corporate Group (MCG), through its 13 regional offices at
 Ahmedabad, Bangalore, Chandigarh, Chennai (2), Hyderabad, Indore,
 Kolkata, Mumbai (2), New Delhi (2) and Pune, has 60 branches as on
 31.03.2013.  During the year, the advances grew from Rs.1,70,442 crores
 to Rs.2,04,853 crores.
 
 Looking to the expansion and growth in business, both in number and
 volumes, an additional Chief General Manager (CGM) was posted in
 October 2012 at the Mid Corporate Group, Corporate Centre. The
 distribution of work between the 2 CGMs is based on geographical lines,
 with one looking after Northern and Southern regions and the other
 Eastern and Western regions - assisting the DMD & Group Executive in
 handling the increased number of MCROs/MCG branches and the growing
 complexities of business.  Similarly, an additional General Manager has
 been posted at Delhi, Mumbai and Chennai Regional Offices during
 2012-13, with clear allocation of MCG branches and attendant
 responsibilities. The doubling of General Managers at these centres has
 provided customers with greater access to senior officials, and has
 also resulted in improved credit delivery - with greater thrust on
 attracting good quality new business. During the year, the incumbency
 of 16 Mid Corporate branches was upgraded from Assistant General
 Manager (AGM) to Deputy General Manger (DGM). With these branches now
 being headed by DGMs, instead of AGMs earlier, the customers would have
 more effective resolution of their credit and other related problems.
 
 Account Management Team (AMT) Model, with manageable number of accounts
 in each team, has been implemented at all branches (214 AMTs), for
 better credit delivery and focused attention to individual accounts. In
 the AMT set-up, both pre and post-sanction formalities are handled by
 the same team - consisting of Relationship Manager, Credit Analyst and
 Service Officer, which helps in having a holistic view of the
 requirements of customers as also the underlying risks.
 
 The MCG held several conclaves, essentially as brain- storming sessions
 with the key functionaries to understand and analyse the trends of
 business. The frank and detailed exchange of views between the top
 executives and the operating officials on the ground, in these
 conclaves, were extremely useful in planning business growth and asset
 management.
 
 As a result of a concerted drive for selecting good quality assets by
 making pricing and other terms more attractive for top rated customers,
 the total percentage of assets above investment grade grew from 64.26%
 as on March 2012 to 68.31% as on March 2013.
 
 The Group also assisted companies in India to acquire assets /
 companies overseas and provides support for such expansion plans,
 including by way of external loans to overseas subsidiaries/JVs (backed
 by LoCs) through the International Banking Group. Over the years, the
 Group has helped many such acquisitions by Indian companies in USA,
 Europe, Australia, Africa, etc.  Simultaneously, a conscious attempt
 was made to improve the asset quality through intense engagement with
 promoters of weak/stressed accounts. Consequently, the Non Performing
 Assets (NPAs) of MCG declined from Rs.19,777 crores as on December 2012
 to Rs.18,443 crores as on March 2013, and NPAs as a percentage of total
 advances were not only contained but also significantly brought down in
 the last quarter of 2012-13.
 
 The Mid Corporates have been more severely affected by the down-turn in
 economy - leading to deterioration in asset quality. The processes of
 appraisal/sanction, follow-up and supervision were, therefore,
 significantly beefed up. An additional position of General Manager
 (Restructuring) has also been created in the Group at Corporate Centre,
 in view of the recent increase in restructuring cases - both CDR and
 non-CDR. With these additions, the DMD has greater support from senior
 officials to look after customer relationships.
 
 D. NATIONAL BANKING GROUP 
 
 Table 5 : NBG Business Performance                    (Rs. In cr.)
 
 As on            31.3.2011  31.03.2012  31.03.2013   YTD GROWTH
                  Level      Level       Level      Absolute       (%)
 
 Segmental        7,91,836    9,12,848*   10,48,136   1,35,288    14.82
 Deposits
 
 Segmental        3,75,037    4,29,509*    4,96,394     66,885    15.57
 Advances
 (non-food)
 
 (* This figure is excluding accounts transferred to MCG during FY
 2012-13)
 
 In terms of Business volumes, Branch Network, and Human Resources, the
 National Banking Group (NBG) is the largest Business Vertical of the
 Bank. The Group has five strategic Business Units, comprising of Rural
 Banking (RBU), Personal Banking (PBBU), Real Estate Habitat & Housing
 Development (RE, H & HD), Small & Medium Enterprises (SMEBU), and
 Government Business (GBU). National Banking Groups share in the total
 business of the Bank as on 31st March 2013 is 95.05% in total domestic
 Deposits, and 56.70% in total domestic Advances.
 
 National Banking group, as on 31st March 2013, comprised of 14,733
 branches out of 14,816 total domestic branches, which are controlled by
 14 Local Head Offices.
 
 With a view to enhance customer experiences at our branches, we have
 air-conditioned all our branches, and improved ambience of our
 branches. With the recruitment of a large number of Assistants, Branch
 expansion programme also got an impetus, and during the year we
 increased our Branch count by 719.
 
 Table 6: Branch Expansion
 
 As on                       Rural     Semi-     Urban    Metro   Total
                                       Urban
 
 31.03.12                     5382      3995     2502      2218   14097
 
 Branches added during         304       170      122       123     719 
 FY 2012-13
 
 31.03.13                     5686      4165     2624      2341   14816
 
 New branches were opened with very good ambience, air-conditioning,
 digital display facilities and with adequate staffing.
 
 To improve operational efficiencies , we have added 2 more Networks, 7
 more Administrative Offices and 81 Regional Business Offices during the
 FY 2012-13.
 
 ATM Network: State Bank of India has the largest ATM network in the
 country, which we have expanded further during the year, to provide
 better ATM facilities to the customers. We have also improved upon
 uptime of ATMs.
 
 Table 7: ATM Network
 
 As on          No. of ATMs      ATM          No. of 
                                 Availability transactions at
                                 uptime       ATMs (in lacs) 
 
 31.03.12            22141          95.15%        23811
 
 31.03.13            27175          96.42%        29324
 
 To further improve upon customer satisfaction and to minimize their
 hardship during bunched holidays, we have been suo-moto offering
 increased working hours/ additional working days.
 
 D.1 RURAL BUSINESS UNIT
 
 - FINANCIAL INCLUSION:
 
 - Bank has set up 38,480 BC Customer Service Points, through
 alliances both at national and regional level.
 
 - SBI is offering various technological-enabled products, through
 Business Correspondents (BC) channel, such as, Savings Bank, RD, STDR,
 remittances & OD facilities.
 
 - Opened 2.03 crores small accounts with simplified KYC.
 
 - Bank has covered 12,931 FI villages (population >2000) and 7,600
 FIP villages (population <2000).
 
 - Transactions volume through BC Channel has grown 2.4 times during
 FY12-13 at Rs.13,033 crores over FY 11-12.
 
 - Direct Benefit Transfer (DBT) Scheme successfully rolled out. SBI
 has Lead responsibility in 28 out of 121 DBT pilot districts. SBI has
 successfully completed 1.31 lac transactions amounting to Rs. 8.77
 crores as Sponsoring Bank, in addition to handling 0.41 lac
 transactions amounting to Rs. 7.08 crores as Receiving Bank.
 
 - Around 99% households covered & 9.85 lac accounts linked with
 Aadhaar in 43 pilot districts.
 
 - Under Urban Financial Inclusion, 5,629 BC outlets have been set up
 in Urban/Metro centres to cater to the requirements of migrant
 labourers, vendors, etc. 157 lac remittance transactions for Rs. 6,962
 crores were registered during FY 13.
 
 - 5.45 lac SHGs were credit linked with credit deployment of Rs.
 5,600 crores. Our market share in SHGs is 23%.
 
 Multiple IT enabled channels for Financial Inclusion include:
 
 - Kiosk Banking - The Banks own technology initiative, operated at
 internet enabled PC (Kiosk) with bio-metric validation at 20,178 CSPs,
 covering 83 lac customer enrolments, has been rolled out in 31 states
 and 479 districts.
 
 - SBI Tiny Card - About 14 lac customers have been enrolled during
 FY13 (cumulative more than 76 lac customers).
 
 - Mobile Rural Banking - Banks own technology on mobile platform
 introduced. This technology works on even very inexpensive mobile
 handsets.
 
 - Cell Phone Messaging Channel-This cost effective model, working on
 low-cost simple mobile phones and well secured through PIN / signature
 based security has been rolled out in 12 states across 50 districts and
 covered 2,025 CSP outlets.
 
 Table 8: Business Performance of Agri-Advances
 
                                                      Rs. in cr.
 
 Particulars                                Level
 
                                      31.03.2012     31.03.2013
 
 Number of farmers covered             99,80,156    1,11,69,524
 
 Agri Priority Advances                 1,07,256       1,24,834
 
 Direct Agri Advances                     86,281       1,08,584
 
 Direct Agriculture Advances               12.99%         14.24%
 (%of ANBC) Benchmark 13.5%
 
 Direct Agri Advances crossed Rs. 1,00,000 crores, the only Bank to have
 crossed this landmark, covering more than 1,11,00,000 farmers and
 surpassed the Benchmark of 13.5% of ANBC. The Bank has also achieved an
 all time high growth of Rs. 21,408 cr under Agri segmental advances
 during FY13. YOY growth works out to 25%.
 
 - Bank has opened the largest number- 111 RSETIs for empowering rural
 youth to take up self- employment.
 
 - Credit Flow to Agriculture
 
 The Bank has disbursed loans aggregating Rs.63,936 crores in FY13
 surpassing the annual GOI target of Rs.60,000 crores and 11.89 lakh new
 famers were brought into the banks fold during the year.
 
 * New Products launched:
 
 - The revised Kisan Credit Card scheme provides for comprehensive
 short term credit limit, assessed for 5 years with 10% step up every
 year, with inbuilt post harvest/household/consumption requirement,
 maintenance expenses of farm assets, Crop Insurance, Personal
 Accidental Insurance Scheme (PAIS), asset insurance and investment
 credit. In addition, loan account is operated through multi-delivery
 channels (PoS and ATMs)using the State Bank Kisan Cards.
 
 - The new Tractor Loan Scheme was rolled out to cater to emerging
 needs with relaxations in eligibility norms, margin, security, coupled
 with competitive interest rates and EMI mode of repayment.
 
 - Special campaigns were launched to accelerate agri-business growth:
 
 Swarna Dhara Campaigns for agri-gold loans was continued, with
 quarterly competitions and garnered Rs. 14,345 crores business.
 
 Tractor Carnival launched from 1st Sep 12 to regain the market
 share, resulted in a business growth of Rs. 328 crores (8083 tractor
 loans).
 
 - Growth enablers:
 
 - Corporate and Partnership Tie-ups: Bank has entered into 14 new
 corporate tie-ups for driving growth , major being PepsiCo (KCC),
 Rallis India (KCC), ITC Ltd (KCC) and National Bulk Handling
 Corporation (Warehousing receipt financing).
 
 - Special interest concessions: Special interest concessions ranging
 from 1.5% to 3.5% were extended to promote loan growth in high value
 agriculture activities like horticulture, minor irrigation, seed
 processing, warehousing, rural godowns, fishery, dairy, poultry,
 dealers in agri inputs, farm machinery etc.
 
 - Relaxed collateral security norms upto Rs.1.00 lac for all agri
 loans and Rs.3.00 lac for loans with recovery tie up arrangements have
 been leveraged to improve quality Agri-Business.
 
 - Bonding with Farmers:
 
 During the year 209 new villages were adopted under SBI Ka Apna Gaon
 Scheme for overall development taking the total to 1,272. 373 new
 Farmer Clubs were formed for fostering continued relationship with the
 farming community taking the total to 10,648.
 
 - Regional Rural Banks:
 
 Table 9: Overview of Regional Rural Banks
 
 Particulars                              Level as on
 
                                       31.03.2012   31.03.2013
 
 No. of RRBs                                  18           15
 
 States covered                               16           15
 
 Districts covered                           129          138
 
 Branches                                   3180         3380
 
 Deposits (Rs.in crores)                   29491        33379
 
 Advances (Rs. in crores)                  17833        20681
 
 CD Ratio                                  60.47        61.95
 
 Profit after tax (Rs. in crores)            320          386
 
 As on 31.03.2013, SBI has 15 sponsored RRBs, which operate in 138
 districts of 15 states and have a network of 3380 branches. During
 FY2012-13, four RRBs viz.,Sharda Gramin Bank, Rewa Sidhi Gramin Bank,
 Nainital Almora Kshetriya Gramin Bank &Rushikulya Gramin Bank,
 sponsored by other Commercial Banks, have amalgamated with SBI
 sponsored RRBs and three RRBs sponsored by the Bank viz; Parvatiya
 Gramin Bank, Samastipur Kshetriya Gramin Bank &Vidisha Bhopal Kshetriya
 Gramin Bank have amalgamated with RRBs, sponsored by other Banks. All
 the RRBs are operating on Core Banking platform and are leveraging
 technology in electronic banking services such as NEFT, RTGS, ATM
 linked KCC and ATM, to provide better customer service. The RRBs are
 endeavouring to increase the size and business volumes by implementing
 financial inclusion.
 
 - Rural Self Employment Training Institutes (RSETIs) Table 10:
 
 Performance of RSETIs                         Rs. in cr.
 
 Particulars                      31.03.2012   31.03.2013 
 
 Number of RSETIs                       106          111
 
 States/ UT covered                      19           24
 
 Persons trained                   1,11,049     1,43,190
 
 Persons settled                     45,285       56,630
 
 RSETIs offer free, unique and intensive short term residential self
 employment training programmes with free food and accommodation,
 designed specially to empower rural youth. Bank has set up 111 RSETIs
 as on 31.03.2013 across the country. The SBI- RSETIs in aggregate
 conducted 5371 training programmes, trained 1,43,190 candidates and
 56,630 trainees are settled under self employment/wage employment.
 
 - Other Highlights
 
 - Under Prime Ministers Programme for the welfare of Minorities and
 implementation of Sachar Committee recommendations, against GOI
 stipulated target of 15% of the total priority sector lending (PSL) to
 Minority Communities, the Bank has achieved a level of 16.77% of the
 total PSL as on 31.03.2013.
 
 - 169 Financial Literacy Centres (FLCs) were set up with the main
 objective of creating financial awareness, importance of savings, and
 advantage of savings with banks, other facilities provided by banks and
 benefits of borrowing from Banks
 
 - The Bank has extended advances to the tune of Rs. 77,019 crores as
 on 31.03.2013 to the weaker sections, which is 10.14% of ANBC against
 the Benchmark of 10% set by Reserve Bank of India.
 
 - The Bank has opened 172 new branches in under-banked/unbanked areas
 in Minority Community Districts ( MCDs) taking the total number of such
 branches to 3,438 as on 31.03.2013.
 
 D. 2 Personal Banking Business Unit Table 11: Domestic Business
 performance of PBBU
 
                                                       (Rs. in cr)
 
 Particulars                   31.03.2012   31.03.2013   YTD Growth 
                                                            (%) 
 
 Deposits                        5,99,313     6,94,033      15.80
 
 Advances (Retail                  79,688       90,227      13.23
 excluding Housing Loans)
 
 CASA                            2,82,047     3,29,699      16.89
 
 Domestic Deposits have grown by Rs. 94,720 crores with a growth of
 15.8% and Advances by Rs. 10,539 crores with a growth rate of 13.23% as
 on 31 March 2013.  CASA Deposit has grown by 16.89% and CASA Ratio as
 on 31.03.2013 is 47.5%.
 
 Table 12: Growth in Savings Bank Accounts
 
                               31.03.2012      31.03.2013
 
 No. of New Savings             227 lacs      286.60 lacs
 Bank Accounts opened
 
 Other highlights include:
 
 - Western Union transactions are being offered at all the branches
 and have contributed Rs. 8.11 crores to other income up to 31st March,
 2013. During the year the Bank also commenced Money Gram transactions.
 
 - Our Bank has been designated as the point of Presence (POP) for
 conducting business under the New Pension System (NPS), an initiative
 of the Government of India, and 3879 branches across all Circles have
 been registered for conducting business under the New Pension System.
 Our Bank has also developed a Corporate Model and has registered 08
 Corporates including State Bank of India. Bank is also registered as an
 Aggregator for promotion of registrations under NPS Lite which is a
 variant of NPS.
 
 - Our Bank is Self-Certified Syndicate Member for ASBA (Application
 Supported by Blocked Amount), as per SEBI guidelines, which is being
 offered through all our branches in India.
 
 - SBI has enabled 3000 ATMs across the country for Visually
 Challenged Persons to carry out ATM transaction through voice guidance.
 These ATMs can be accessed by visually challenged custmomers of all
 banks.
 
 - NRI Services:
 
 - During the year 2012-13, NRI Deposits have grown by Rs. 13,922
 crores (22%) and reached a level of Rs. 77,185 crores as on 31.03.2013.
 Advances to NRIs recorded a growth of Rs. 442 crores (25%) during the
 financial year 2012-13, the level reached being Rs. 2,240 crores as on
 31.03.2013. NRIs have invested in the schemes of SBIMF and SBI Life to
 the tune of Rs. 696 crores during the year.
 
 - SBI was the principal sponsor of Pravasi Bharatiya Divas, a
 flagship event for NRI Diaspora from all over the world, organized by
 the Ministry of Overseas Indian Affairs, which was held in Kochi
 (Kerala) from 7th- 9thJanuary 2013.
 
 - To achieve the status of the preferred NRI Bank, we have opened 16
 new NRI Branches in India during the current financial year, taking the
 number of NRI branches to 69.  These branches have an excellent
 ambience along with dedicated team of officials to serve NRI customers.
 
 - SBI has started offering FCNR (B) deposits in 4 additional
 currencies viz. Swiss Franc (CHF), New Zealand Dollar (NZD), Swedish
 Krona (SEK) and Danish Krone (DKK) since September 2012.
 
 Table 13: Corporate & Institutional Tie-Ups:
 
 Particulars          31.03.2012   31.03.2013      Growth during FY
                                                   2012-13
                                                  Absolute      %
 
 Defence Salary 
 Package and           19,21,107    22,27,930     3,06,823     15.97
 Para Military 
 Salary Package
 accounts
 
 Other Salary Package  42,54,397    48,51,168     5,96,771     14.03 
 Accounts
 
 Total No of Salary 
 Package               61,75,504    70,79,098     9,03,594     14.63 
 Accounts
 
 CASA (in Rs. crores)     16,221       21,262        5,041     31.08
 
 The various Salary packages together have resulted in taking the total
 salary account Customer base to 70.79 lacs, i.e. a growth of 9.03 lac
 new accounts during the period 01.04.2012 to 31.03.2013. CASA in these
 accounts has gone up from Rs. 16,221 crores to Rs. 21,262 crores during
 this period. The incremental CASA of Rs. 5,041 crores represents 11.58
 % of the incremental Personal Banking CASA of the Bank.
 
 * Auto Loans
 
 SBI Auto Loans maintains its retail market leadership in car loan
 financing. The Auto Loan portfolio has grown by 35.48% during FY 2012-
 13 in spite of near flat growth of passenger car market. The Bank has
 emerged as a clear market leader in Auto Loans with a market share of
 22.25% amongst ASCB as on Mar2013.
 
 The Bank is currently offering car finance on On Road Price of the
 car, with the longest repayment period of 7 years, no pre-payment
 penalty, no advance EMI and at competitive interest rates. A new
 product SBI Combo Loan Scheme has been launched during the year for
 financing a car and a two-wheeler together (combined limit).
 
 SBI has taken up various joint promotional activities with major car
 manufacturers like Maruti, Hyundai, Tata Motors, Ford, Mahindra &
 Mahindra, Toyota, and Mercedes during the financial year 2012-13.
 
 * Education Loans
 
 SBI Education Loans has grown by 9.43% during FY 2012-13. SBI has a
 total exposure of Rs. 13,751 crores as on Mar 2013.
 
 SBI Loan Scheme for Vocational Education and Training was launched in
 July 2012 and loans upto Rs. 1 lac are given under this scheme.
 
 Maximum Loan Amount for Studies Abroad has also been increased to Rs.
 30 lac from the previous limit of Rs. 20 lac.
 
 In order to provide financial assistance to more students opting for
 higher education, the SBI Scholar Loan scheme has been extended to 114
 institutes . The maximum loan amount under this scheme has also been
 enhanced to Rs. 30 lac.
 
 * Personal Loans
 
 The Personal Loans Portfolio, which is the second largest in the
 Personal Banking Segment, has grown by Rs. 2,860 crores during FY
 2012-13. It includes Loan against Securities, Loans against Properties,
 Gold Loan, etc. Of these, Xpress Credit and Loan against Time Deposits
 are two major products and have grown by Rs. 1,002 crores and Rs. 1,217
 crores during FY 2012-13 respectively.  The most notable growth has
 been in Gold Loan portfolio of Rs. 480 crores (96.94%) during FY 2012-
 13.In order to further increase our market share in the Loan against
 Deposit Scheme, we have reduced our rate of interest from 0.75% above
 the TD rate to 0.50% above the TD Rate, which is one of the lowest in
 the industry.
 
 The Delivery Systems for loan products have been under constant focus.
 Retail Assets Centralized Processing Centres (RACPCs) have been opened
 up across the country, based on the volume, geographical spread and
 product focus to ensure uniformity in processing of all Retail loan
 proposals.  This ensures smooth delivery to the customer and with the
 support of Loan Originating Software (LOS) that currently takes care of
 Credit- related risks, will enable customers, in future, the facility
 to track their application online. As on 31.03.2013, there were 60
 RACPCs and 70 Retail Assets and Small & Medium Enterprises City Credit
 Centres (RASMECCs).
 
 Some of the steps taken to reduce NPAs are:
 
 - Risk Scoring Models have been developed for all P-Segment Loans on
 the basis of statistical models for objective assessment. Recently, the
 Auto Loan scoring model has been made tighter and more emphasis is now
 being given to Net Income of an individual. (For eg: The minimum income
 criterion for Auto Loans has been raised from Rs. 1 lac to Rs. 2.5 lac
 p.a.).
 
 - Loan Origination Software (LOS) usage (100% usage at RACPCs), and
 its integration with the Risk Scoring Model (RSM) and CIBIL check to
 take care of many process related risks.
 
 - In view of the rising NPAs in Education Loans, PAN card of the
 student and co-borrower/ guarantor has been made mandatory for all
 Education Loans. For existing Education Loans, a one-time exercise is
 planned to obtain the PAN card numbers. Instructions have been issued
 to all operating units to send Notices to borrower, co-borrowers and
 guarantors in case of default in Education Loans.
 
 - Immediate action under SARFAESI, including seizure of cars for
 eligible cases.
 
 - Instructions are in place for granting no further Retail Loans
 (except Education Loans) to the employees of those companies whose
 accounts are classified as NPAs.
 
 D.3 Real Estate, Habitat & Housing Development (RE, H&HD)
 
 State Bank of India, the Most Preferred Home Loan Provider with the
 largest Home Loan portfolio in the Banking Sector and market share of
 over 26% amongst All Scheduled Commercial Banks (ASCBs) :
 
 Table 14: Performance in Home Loans         
 
                                     (Rs. in cr.)
 
 Particulars              March, 2012   March, 2013
 
 Levels                     1,02,739      1,19,467
 
 YTD Growth                   12,826        16,728
 
 YTD Growth (%)                14.41         16.30
 
 During FY 2012-13, several initiatives were taken by the Bank to give
 an additional thrust to its Home Loan portfolio. Some of the important
 initiatives in this regard are as under:-
 
 - The Maximum Repayment Period permissible under NRI Home Loans
 Scheme has been increased from 25 years to 30 Years to align the same
 with the Maximum Repayment Period under domestic Home Loans Scheme,
 imparting it with greater flexibility.
 
 - The ceiling on financing Home Interiors/ Furnishings, as part of
 the project cost, has been revised upwards from Rs.3 lac to Rs.6 lac
 subject to the amount expended towards Home Interiors/ Furnishings
 being restricted to 10% of the Project Cost and the Maximum Loan Amount
 adhering to the stipulated Loan to Value (LTV) Ratio.
 
 - Home Loan Interest Rates were reduced substantially w.e.f.
 7thAugust, 2012 by reducing the spread over the Base Rate. With
 subsequent downward revisions in the Base Rate itself, the effective
 Interest Rate on Home Loans ultimately stood reduced to 9.95% p.a. for
 loans upto Rs.30 lac and 10.10% p.a. for Home Loans above Rs.30 lac as
 on 4thFebruary, 2013 rendering them very competitive and the lowest in
 the market.
 
 - The premium of 0.25% p.a. applicable on Interest Rates under
 Commercial Real Estate (CRE) Home Loans has been waived to align the
 same with the prevailing Interest Rates on normal Home Loans.
 
 - With a view to extend the benefit of lower rates of interest (both
 Fixed and Floating Interest) to our existing Home Loan customers paying
 relatively higher interest rates, an option to switch-over their loans
 to the current lower interest rates was made available on payment of a
 fee of 0.56% of the outstanding w.e.f. 21stSeptember, 2012.
 
 - A Special Takeover Campaign was launched from 1stSeptember, 2012,
 assuring prospective customers, of a fixed Processing Fee of Rs. 1000/-
 on Home Loan Takeovers, irrespective of the loan amount. The Campaign
 was extended till 31stMarch, 2013 and provided our Bank with a
 competitive edge in the overall pricing of our Home Loan products.
 
 - Term Assurance (Loan Protection) Cover (optional) is available to
 our Home Loan customers from SBI Life Insurance Company Ltd through
 RiNnRaksha /Smart Shield/Saral Shield. The Bank provides additional
 loan for payment of the premium of the above policies on the same terms
 as those applicable to the underlying Home Loans.
 
 D.4 SME BUSINESS UNIT (SMEBU)
 
 During the financial year 2012-13, the advances under SME Business Unit
 has registered year on year growth of 12.45%. The advances figures of
 SME Business Unit as on 31..03.2013 are as under.
 
 Table 15: Business Performance in SME 
 
                                                    (Rs. in Cr.)
 
 Particulars         31.03.2012    31.03.2013     Growth 
                                                 (% increase) 
 
 Advances             1,63,745      1,84,128         20,383 
 
                                                     (12.45)
 
 No of                   12.84         12.97           0.13
 accounts
 (in lakhs)
 
 - Relationship Banking :
 
 Under single window approach, the Bank is offering Relationship Banking
 to SME Entrepreneurs. The strength of Relationship Managers (Medium
 Enterprises) was augmented to 566 as on 31.03.2013 and mapped to ME
 units with credit limits Rs.1.00 crores and above across the country.
 The advances portfolio under Relationship banking as on 31.03.2013 is
 Rs. 1,03,619 crores. For units having credit limits between Rs. 10.00
 lacs to Rs. 1.00 crores, Relationship Managers (SE) have been posted to
 improve credit flow to Micro and Small Enterprises.
 
 - SME Credit City Centres (SMECCC):
 
 SMECCCs, rolled out during 2004-05 as a part of BPR initiative, are
 centralized loan processing centres for sanction of SME loans upto
 credit limit of Rs. 1 crore. At present 78 SMECCCs and 58 RASMECCs
 across the country are functional.  To further revamp the structure and
 process of SMECCCs to enable consolidation of the Banks position in
 the SME universe in the country a major exercise has been initiated in
 association with renowned consulting group. The revamped process will
 be in place by September 2013.
 
 - Specialized SME Branches :
 
 To provide specialized services to SME Entrepreneurs, 400 branches
 having predominant share of SME advances in their portfolio are being
 branded as SME BRANCH to define the identity of these branches with a
 common nomenclature and to develop these branches as centres of
 excellence for SME loan delivery.
 
 - Credit Flow to Micro and Small Enterprises under CGTMSE:
 
 Bank is extending collateral free lending up to Rs. 1.00 crores to MSE
 sector under guarantee of CGTMSE.  Additionally, to provide relief to
 these units Bank has decided to absorb the guarantee charges payable to
 CGTMSE. The outstanding under the guarantee scheme of CGTMSE is as
 under:
 
 Table 16: Performance in CGTMSE                   (Rs. in cr.)
 
 Particulars                     As on       As on       Growth
                                 31.03.2012  31.03.2013 (% Increase)
 
 Outstandings                        3,716       7,236      3,520
 (% to
                                     (2.27)      (3.92)     (94.7)
 total SME advances)
 
 No of                                1.13        1.72       0.59 
 customers 
                                                            (52.2) 
 (in lakhs)
 
 - Project Uptech:
 
 Bank is providing consultancy support to SMEs for catalyzing Technology
 Upgradation in SME clusters with the objective of making the clusters
 more competitive through increase in productivity and quality and
 reduction in costs. Since inception of the initiative 1600 units have
 benefitted in 28 clusters. Presently, three projects, Steel Structural
 Fabrication & Boiler Component (Trichy), Fabrication Engineering
 (Jamshedpur and Nagpur) are going on.
 
 - Entrepreneurship Development programme :
 
 Bank has formulated a scheme for conduct of EDPs on an ongoing basis,
 in association with reputed national level EDP training institutes. To
 begin with, 4 centres were identified for conduct of EDPs on pilot
 basis during the year, viz. Ahmedabad (in association with EDI),
 Hyderabad (in association with NI-MSME), New Delhi (in association with
 NIESBUD) and Bhubaneswar (in association with SBI-RSETI, Jharsuguda).
 The target groups for the EDPs were mainly final year students of
 engineering / management colleges and educated youth. The total number
 of participants was 120. It is proposed to have EDP programmes on
 regular basis in all the Circles across the country during FY 2013-14.
 
 - Supply Chain Finance:
 
 Leveraging its state-of-art technology, SBI is focusing on further
 strengthening its relationship with the Corporate World by financing
 their Supply Chain partners. Towards this SBI introduced Channel
 Financing Products with the following features:
 
 - Web based platform, fully integrated worth Corporate Enterprise
 Resource Planning Software
 
 - Real time online transfer of funds 4 Automated settlement of funds
 
 - Customized MIS
 
 - Centralized hassle free processing All the product offerings under
 Channel finance are designed to ensure efficient management of working
 capital cycle and sustained growth and profitability of business
 partners and the entire Supply chain is taken care under the scheme,
 which is fully automated, secured and robust. The products offered
 under channel financing are Electronic Dealer Financing Scheme (e-DFS)
 and Electronic Vendor Finance scheme (e-VFS). Under Supply Chain
 Finance bank has tied up with 65 Industry majors with across all
 Industry Verticals like Auto, Oil, steel, Power, fertilizer, FMCG and
 Textile.
 
 Table 17: Performance in Supply Chain Finance
 
                                                 (Rs. in cr.)
 
 Particulars              As on         As on       Growth 
                          31.03.2012    31.03.2013 (% Increase)
 
 Outstandings                2,190          4,781      2,591
 
                                                      (118.3)
 
 No of                         813           1766        953 
 customers 
                                                      (117.2)
 
 - Cash Management
 
 The Bank has introduced cash deposit machines to facilitate deposit of
 cash into their account by customers themselves by swiping their SBI
 ATM cum Debit card. To enable SME customers also to deposit cash into
 their CA/CC account through CDMs, State Bank SME Insta Deposit Card was
 launched during the year. With Insta Deposit Card, SME customers like
 traders & service providers are able to quickly deposit their cash into
 their accounts without waiting in the queue. As on March 31, 2013, the
 Bank had issued 1,66,477 insta deposit cards to SME customers, showing
 the growing popularity of the facility. The number of CDMs installed
 was 665.Similarly,the cash pickup facility of collecting cash at
 customers doorsteps was introduced for SME customers in August 2011
 Marketing campaigns were launched during the year to popularize the
 scheme among SME customers.  The growth in usage of this facility has
 been as under:
 
 Table18: Cash Pick up Facility                   (Rs. in cr.)
 
 Particulars              As on         As on       Growth 
                          31.03.2012    31.03.2013 (% Increase)
 
 
 No of                           88           484         396
 customers 
                                                         (450)
 availing the
 facility
 
 Amount of                   153.20      2,246.75    2,093.55
 cash pick-up
                                                        (1348)
 
 Table 19: Performance in Government Business
 
 Year           Turnover      Commission      Market
               (in cr.)      (in cr.)         Share (%)
 
 2011-12         2536900        2008.23        58.50
 
 2012-13         2862053        1778.20        58.12
 
 - While the Bank retained its leadership in Government Business
 ,there was a minor dip in Agency Commission due to downward revision in
 rates by RBI with effect from 1st July, 2012. The adverse impact on
 Agency Commission was contained by marketing of various products,
 customized to suit the requirements of the Government.
 
 - The Bank brought more State Governments and taxes under the ambit
 of Cyber Treasury and paid special attention to opening Public
 Provident Fund Accounts and Pension Accounts.
 
 - E- Governance Projects of Central and State Governments which are
 bringing a paradigm shift in the way Government business is conducted
 are being leveraged for customers convenience bringing about more
 efficiencies of processes.
 
 - 2.83 Lakhs new Pension Accounts were opened, bringing the tally to
 34.74 Lakhs Pension Accounts being serviced efficiently through 14
 Centralized Pension Processing Cells set up in various parts of the
 country.  Pension details are being sent to the pensioners on their
 mobile numbers. Besides this, pensioners can lodge their complaints
 online, on our website, or seek clarifications at our contact Centre.
 
 - The Bank is ushering in the era of hassle free fee collection on
 behalf of various Departments, Union Ministries and state Governments.
 An income of Rs. 41 crores was generated from this product during the
 current financial year.
 
 - The Bank is actively participating in the SAAKSHAR BHARAT
 Mission of the Union Government and has opened 1, 23,343 accounts for
 dispensation of funds upto Gram Panchayat level in 22 states across the
 country.  The Bank has also sponsored the SAAKSHAR BHARAT celebrations
 at Red Fort, Delhi and Lucknow, the Capital city of Uttar Pradesh.
 
 - State Bank of India is the exclusive Banker to the Ministry of
 External Affairs (MEA) and is collecting the Passport Fees from
 Passport Sewa Kendra (PSK) in the country.
 
 - Bank is proud to be associated with Central Government Projects
 like Government e-Payment Gateway (GePG). By integrating with GePG
 portal, the Bank is now enabled to make electronic payments to
 employees/ vendors of Central Government across the country.
 
 - Products like Rail Shakti, E-Auction and Imprest Cards have
 been very well received by Railway Authorities and are expected to gain
 momentum during FY 13-14.
 
 - The Bank has since been authorized to collect RTI fee online which
 will be helpful in generating substantial revenue as Agency Commission.
 
 E INTERNATIONAL BANKING 
 
 Operation of Foreign Offices
 
 The asset level of foreign branches rose by 18%, from USD 35.826 bn in
 March 2012 to USD 42.146 bn in March 2013. During FY13, net customer
 credit grew by 17% from USD 26.681 bn to USD 31.148 bn, customer
 deposits grew by 11%, from USD 12.075 bn to USD 13.374 bn. Net profit
 rose by 10% to USD 435.64 mn.
 
 Table 20: Business Performance of Foreign Offices
 
                                                   (IN USD MIO)
 
                      Mar-12     Mar-13     YOY         YOY
                                            Growth      Increase in %
 
 Net Assets          35826.46   42146.10    6319.65        17.64
 
 Net Customer Credit 26681.23   31148.53    4467.31        16.74
 
 Net profit            395.63     435.62      39.99        10.11
 
 The number of foreign offices increased from 173 as on 31st March 2012
 to 186 as on 31st March 2013 spread across 34 countries. The offices
 comprised of 51 branches, 7 Representative Offices, 107 offices of the
 six foreign banking subsidiaries and 21 other offices.
 
 Table 21: Break -Up of Foreign Offices
 
                                    FY-12     New Offices     FY-13 
                                              opened during 
                                              the year
 
 Branches/SO/Other Offices            58           10          68
 
 Subsidiaries/JV (6)
 
 Offices                             103            4         107
 
 Rep Offices*                          8           -1           7
 
 Associates/ Managed                   4            0           4
 Exchange Cos/Investments
 
 Total                              1731          131         186
 
 *Tianjin Representative office was Upgraded to full fledged Branch
 
 Resource Management
 
 Banks Foreign Offices maintained comfortable liquidity position during
 the fiscal, despite volatile market conditions. In July 2012, Bank
 successfully priced a USD 1.25 Bn Bond issue, 144A/ Reg S transaction
 maturing in August 2017. Bank received overwhelming response across
 investor classes for the Bond, despite very difficult market
 conditions. Bilateral loans of different maturities worth USD 540 Mn
 were also raised during the fiscal. At Singapore, where the Bank has 7
 branches and 24 ATMS, including ATMs at Changi Airport terminals 1, 2 &
 3, retail deposits saw a 21% growth year-on-year. Our UK operations
 also scaled up its retail presence to achieve a retail deposit growth
 of 41% in the fiscal.
 
 Remittance
 
 Inward remittances grew from Rs. 61,457 crores in FY12 to Rs. 69,812
 crores in FY13, clocking a growth of 14%. The Bank had a tie-up with
 27 exchange companies and five banks in Middle-East countries for
 routing remittances through SBI. During the year, new remittance
 product SBI Express Remit-Canada was launched exclusively for
 Canadian Dollar remittances.  An Outward remittance product RemXout
 was launched for SBI Internet Banking customers.
 
 E-2. Domestic Operations Merchant Banking
 
 The Bank retained its premier position as Mandated Lead Arranger and
 Book Runner for syndicated loans in Asia Pacific (excluding Japan but
 including Australia) for the sixth consecutive calendar year, in FY13.
 
 During FY-13, Bank acted as the Mandated Lead Arranger in 17 deals
 aggregating USD 6.442 Bn for several leading Indian corporates like
 IOCL, REC, NPCL, MRPL, Reliance Industries and Vedanta Resources Plc.
 
 Table 22: Syndicated Loan Deals
 
                  No of Deals    Amount (in USD bn)
 
 FY-12                 14              4.76
 
 FY-13                 17              6.29
 
 Apart from this, foreign currency term loans aggregating USD 3.68 bn
 were extended to Indian corporates on a bilateral basis. Further, 10
 loans amounting to USD 229.04 mn were acquired through secondary
 market.
 
 Fee income of USD 89.88 mn was earned from foreign currency term loans
 concluded during the year through syndication / bilateral deals.
 
 Global Link Services (GLS)
 
 Global Link Services (GLS), a specialized outfit, caters to centralized
 processing of Export Bills collection, Cheque collection and online
 inward remittance transactions.
 
 During the financial year 2012-13, GLS (on behalf of domestic branches)
 handled 104,262 export bills and 74,566 foreign currency cheque
 collections aggregating USD 15.27 bn. In addition, it handled 7,047,064
 online inward remittance transactions amounting to USD 6.45 bn received
 from all over the world in 39 currencies
 
 Correspondent Relations
 
 The Bank maintains correspondent banking arrangement with 429 reputed
 International Banks to extend seamless services to varied clients.
 These correspondent Banks are located in 118 countries.  The Bank also
 has 1,765 Relationship Management Application (RMA) arrangements with
 SWIFT, facilitating speedier flow of financial messages.
 
 Country Risk and Bank Exposures
 
 The Bank has in place a Country Risk Management Policy in tune with RBI
 guidelines. The policy outlines robust risk management model with
 prescriptions for Country, Bank, Product and Counter party exposure
 limits. Both Country-wise and Bank-wise exposure limits are monitored
 and reviewed on a regular basis. The exposure ceilings and
 classifications are moderated in line with the dynamics of their risk
 profiles. Periodical corrective steps are initiated to safeguard the
 Banks interests.
 
 I.3. CORPORATE STRATEGY AND NEW BUSINESSES
 
 Emerging business areas, including tech-based products, are developed
 and launched by a dedicated department headed by a Dy. Managing
 Director. Progress on some of their key initiatives is detailed
 hereunder:
 
 - Debit Cards:
 
 Debit Card spends of State Bank Group crossed Rs. 15,000 crores for FY
 2012-13 which constitutes over 20% of total Debit Card spends in the
 industry. The Bank has been actively promoting Debit Card usage at
 Point of Sale/for e-Commerce. For the festive season from 16- Oct-2012
 to 15-Nov-2012, the Bank ran a promotional Campaign called Cracker of
 an Offer where the Bank along with its subsidiary, SBI Card, tied up
 with a number of merchant partners to offer attractive discounts for
 State Bank Debit and Credit Card usage at their outlets/websites. With
 a view to increasing Debit Card activation, the Bank also ran special
 promotional offers for its Debit Cardholders with leading merchants of
 different merchant categories in the industry in co-ordination with SBI
 
 Card.
 
 The Bank launched State Bank Business Debit Card for its corporate
 customers in two variants Pride and Premium on the occasion of
 Banks Day 2012. Till 31-March-2013, more than 86,000 Business Debit
 Cards have been issued. This product is being launched in Associate
 Banks shortly.
 
 - Prepaid Cards:
 
 Banks range of products include popular Rupee Prepaid Cards like Gift
 Card, General Purpose Prepaid Card like eZ-Pay Card and Foreign Travel
 Card catering to various payment needs of the customers.
 
 - Foreign Travel Card:
 
 Foreign Travel Card, now a CHIP based EMV Compliant Card, is available
 in eight currencies, US Dollar (USD), Great Britain Pound (GBP), Euro,
 Canadian Dollar (CAD), Australian Dollar (AUD), Japanese Yan (JPY),
 Saudi Riyal (SAR) and Singapore Dollar (SGD), providing safety,
 security and convenience to overseas travellers.  Corporate variants of
 SBFTC have been introduced to cater to the needs of Corporates. Sales
 for FY 2012-13 were to the tune of to USD 66.92 million.
 
 - eZ-Pay Cards
 
 eZ-Pay Cards are aligned with most of the social schemes of State and
 Central Governments in addition to salary payments by Corporate
 entities, thus reaching millions of households. Sales for FY 2012-13
 were to the tune of to INR 931.92 crores. Co-branded Prepaid Cards for
 various Zones of Indian Railways and Federation of Freight Forwarders
 Association in Indian (FFFAI) were rolled out during FY 2012-13.
 
 - Gift Cards
 
 Gift Cards remain the preferred option to customers to gift the
 freedom of choice to their loved ones.  Customers can create Gift
 Cards online. Sales registered during FY 2012-13 was INR 77.44 crores.
 State Bank Achiever Card, a re-loadable corporate incentive Card with a
 validity of 10 years for disbursement of incentives/awards was rolled
 out during March-2013.
 
 - Green Channel Counter (GCC)
 
 The Green Channel Counter facility is made available in 7052
 branches. On an average, the daily transactions routed through GCC are
 more than 1,00,000.
 
 - Self Service Kiosk (SSK)
 
 As on 31.03.2013, SSKs have been installed in 965 branches. On an
 average, SSKs are recording more than 30,000 transactions on a daily
 basis.
 
 - Green Remit Card (GRC)
 
 GRC, a remittance card, was introduced on 02.01.2012 mainly to take
 care of the large number of non- home cash deposit transactions at our
 branches.  A cardholder can swipe the card at Green Channel Counter or
 in Cash Deposit Machines and remit money to the beneficiary whose
 account number is mapped to the card. Once the transaction is complete,
 both the remitter and beneficiary get confirmation through SMS on their
 mobile phone. The Bank has issued 6,23,623 cards resulting into
 8,08,830 cash deposit transactions as on 31.03.2013.
 
 - Mobile Banking & Wallet
 
 Presently, the Bank has a market share of around 65% in the transaction
 volume and over 36% in the transaction value . During the FY, financial
 transactions to the tune of Rs.1933 Crores were done through the
 service resulting in a total income of Rs.4.67 crores. As on February
 2013 SBI is the market leader in terms of registered user base and
 number of transactions.  Efforts are in place to maintain the
 leadership position in this space.
 
 The Bank has launched a full KYC mobile wallet under the brand name
 State Bank MobiCash. A variant of the same State Bank MobiCash
 Easy, a wallet which does not require completion of KYC formalities
 was launched in Mumbai, Delhi and Chandigarh on the 31st December,
 2012. So far, around 14,500 wallets have been issued.
 
 - Merchant Acquiring Business (MAB)
 
 In order to create a comprehensive electronic infrastructure in the
 country, activate our more than 136 million debit cards on POS
 terminals, increase visibility and to tap the huge potential available
 in the market, Merchant Acquiring business is being conducted by the
 bank. With around 70000 terminals in the market, Bank is already the
 largest player amongst the Public Sector Banks and 4th largest Acquirer
 in India.  Bank has already entered into Corporate tie-ups with many
 prominent players including top educational institutions and hospitals.
 
 - Private Equity
 
 The Banks foray into the Private Equity space began in 2009 with a
 Joint Venture with the Macquarie Group of Australia. The Fund raised US
 $ 1.2 billion, making it one of the largest India focussed Private
 Equity Funds.  The Fund has made 8 investments in sectors such as
 Airports, Telecom, Roads, Renewable and Thermal Energy. The Fund made
 investments to the extent of 90% of the Capital Committed.
 
 The Joint Venture with State General Reserve Fund of the Sultanate of
 Oman, named the Oman India Joint Investment Fund, a US $ 100 million
 Fund has made three investments of Rs.202 crores, in sectors such as
 defense electronics and industrial explosives. With this, the Fund has
 made investments to the extent of 40% of the Capital Committed.
 
 The Bank signed a preliminary non-binding MoU with Russian Sovereign
 Wealth Fund- Russian Direct Investment Fund (RDIF) for setting up US $
 2 billion Private Equity Fund to invest / facilitate investments into
 bilateral co-operation projects, bilateral trade related projects or
 companies, privatization or globalization opportunities, projects
 particularly with India-Russia context.
 
 I.4. NPA MANAGEMENT
 
 Credit Policy and Procedures
 
 This year was characterized by sharp increase in non- performing assets
 in the first three quarters of the year, which abated only in the
 fourth quarter. While a major reason for such high NPA generation could
 be the overall slowdown in economic growth and other macro economic
 factors, it has also brought to attention the need for arranging our
 credit policy and practices to achieve the following objectives:
 
 a.  To analyse and address the reasons for relatively higher NPAs in
 comparison to the other banks,
 
 b.  Reasons for our relatively low share in better performing business
 segments.
 
 The Credit Policy and Procedure Committee of the Bank, headed by
 Chairman, comprises of all heads of business groups/verticals like CFO,
 IBG, NBG, MCG, CAG and also Treasury. The forum of CPPC was activated
 and 17 meetings were held during the year and 72 policy changes were
 approved.
 
 Details of the Credit Committees Structure are as below: At Corporate
 Centre:
 
 a) Executive Committee of Central Board (ECCB)
 
 b) Corporate Centre Credit Committee (CCCC)
 
 c) Whole Banking Credit Committee (WBCC-I) International Division
 Credit Committee (IDCC)
 
 d) Whole Banking Credit Committee (WBCC-II) International Division
 Credit Committee (IDCC-II)
 
 At Local Head Office/Mid Corporate Group
 
 a) Circle Credit Committee (CCC-I)/
 
 Mid Corporate Credit Committee(MCCC)
 
 b) Circle Credit Committee (CCC-II)
 
 c) Zonal Credit Committee (ZCC)/
 
 SME Credit Committee (Branch level Credit Committee in MCG)
 
 d) Regional Credit Committee (RCC)
 
 In order to downstream the credit sanction process, a Regional Credit
 Committee (RCC) at each Regional Office was created with discretionary
 powers of Rs.5 crores fund based and Rs.2.5 crores non-fund based for
 Corporates.
 
 SAMG has also put in place a new Credit Committee.
 
 The above structure has the benefit of being able to respond to the
 business opportunities in a quick manner and at the same time having
 adequate control and oversight. All the above Committees have periodic
 and regular meetings whenever there were enough proposals to be
 considered. The collective decision making process has been found to be
 effective in better risk assessment and quality decision making.
 
 The analysis revealed the spreads in non-fund business in the Bank are
 much lower compared to the fund based even after adjusting for cost of
 capital.  Accordingly, the Bank has decided to link the pricing for all
 non-fund based business to External Credit Ratings and also improve the
 security cover for these exposures. Simultaneously, the pricing for top
 rated companies viz. AAA, AA, A was made more aggressive in order to
 get higher share. The first half of the financial year was slack. The
 results of these strategies were noticeable in the second half and
 there was a robust growth of Rs.46,491 crores in advances from the last
 quarter and more than 80% of this came from companies rated investment
 grade.
 
 The Bank has also fine tuned its policy for Corporates, which allows
 the Bank to refinance their high cost loans with other Banks. Corporate
 loan has twin advantage as it is extended for long term working capital
 requirements of the corporate and requires only a minimum Fixed Assets
 Coverage Ratio (FACR) of 1.25. It has proved to be quite popular with
 our constituents. Similarly, from time to time, the pricing and terms
 of various other loans like Home Loans, etc. have been adjusted to
 generate high growth with good quality.
 
 The product of electronic platform for financing to dealers of reputed
 companies e-DFS was made strong and pricing was also made very
 attractive, which has led to phenomenal growth in the portfolio of
 e-DFS.
 
 The Bank also continued with its policy of 100% ECGC cover for all
 export oriented units and premium thereof was borne by the Bank. During
 the year ECGC based on their understanding of global slowdown and
 default by several overseas buyers, made the rules stricter for packing
 and post shipment credit. Accordingly, Banks credit policy also
 envisages that packing credit can be sanctioned only when there are
 satisfactory credit reports available on the overseas buyers on a
 recent date and verification of Buyers Specific Approval list
 maintained by ECGC.
 
 Similarly, credit scoring model for car loans was modified to make it
 more effective without significantly diluting credit standards.
 Further, the minimum threshold credit rating for takeover of advance
 has also been enhanced to SB6 and with External Rating of minimum BBB.
 
 External rating: The Bank has to allocate capital on assets depending
 on the basis of credit rating. As per current regulations, credit
 rating is necessary / mandatory for all accounts of advances of Rs.5
 crores and above. Out of 55,130 eligible accounts, 31,702 have already
 been rated. We are continuing our endeavours to encourage the remaining
 eligible accounts to obtain the required external credit rating.
 
 In order to impart transparency and impartiality to the pricing process
 for all working capital advances, the pricing has been linked to
 external rating and the current matrix is:
 
 Table 23: Pricing of Loans
 
 External Rating     WCDL                  Cash Credit
 
 AAA / AA            Base Rate             Base Rate + 25 bps
 
 A                   Base Rate + 25 bps    Base Rate + 50 bps
 
 BBB                 Base Rate + 0.65 bps  Base Rate + 0.90 bps
 
 With the pricing for loans being non-discriminatory, executive time is
 not required to be given for deciding on pricing for individual
 companies. Similarly, in other business areas like Home Loans,
 Education Loans, Car Loans, etc. the pricing was made
 non-discriminatory and uniform for similar categories.
 
 STRESSED ASSETS MANAGEMENT GROUP
 
 In the wake of the Global crisis of 2008 and the headwinds before the
 Indian economy today, asset quality of Indian Banks, including SBI, has
 been under pressure. Slippages have continued unabated and resolution
 of NPAs today poses a major challenge to Banks.
 
 With a view to address this issue, we have, during 2004, set up the
 Stressed Assets Management Group (SAMG). SAMG is headed by a Deputy
 Managing Director supported by a team of 2 Chief General Managers and
 other senior officials. SAMG has been set up as a dedicated and
 specialised vertical to efficiently resolve high value NPAs which are
 transferred to the Group by other Strategic Business Units.
 
 Today, SAMG has 15 branches across the country of which 2, one at
 Ernakulam and another at Mumbai (second branch) were opened during the
 year. The Bank also holds licenses for opening branches in three other
 Centres. Arrangements are on hand to open one of these in Coimbatore.
 The branches are staffed with officials with expertise in resolution of
 stressed assets, duly supported by Law officers.
 
 As on date, 24.35% and 58.14% of the Banks NPAs and AUCA reside within
 SAMG. While SAMG is primarily responsible for resolution of NPAs in the
 Corporate segment, Stressed Assets Recovery Branches (SARBs) and
 Stressed Assets Recovery Cells (SARCs) have been set up within the
 National Banking Group to tackle retail NPAs. The recovery efforts of
 SARBs/SARCs are supplemented by efforts put in by ground level
 operating staff at our 14,816 branches across the country. Besides,
 Account Tracking & Monitoring (AT@M) Centres have been operationalised
 in all Circles to contact SMAs and NPAs in the retail segment. Business
 Correspondents, Business Facilitators and Self Help Group are also
 involved in recovery of Agricultural NPAs.
 
 SAMG employs multi-pronged strategies to resolve stressed assets
 including, inter alia,
 
 - Restructuring of both Standard assets and NPAs, either though the
 CDR mechanism or through a bilateral arrangement
 
 - Recovery through auction of assets using the SARFAESI route
 
 - Filing suits in Debt Recovery Tribunals and other Courts for
 recovery of our dues
 
 - Identifying strategic investors and engaging with them for takeover
 of stressed assets
 
 - Sale of NPAs to Asset Reconstruction Companies
 
 - Entering into One Time Settlements with borrowers
 
 - Using Resolution Agents to take possession of properties mortgaged
 to the Bank and arranging for their auction
 
 - Using the e-auction platform to reach out to as many prospective
 bidders as possible
 
 - Debt Asset swaps have been considered in some cases
 
 - Engaging investigation agencies to trace out unencumbered assets of
 promoters and guarantors and obtaining Attachment Before Judgements
 over these properties
 
 - 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
 the Reserve Bank of India.
 
 - Publishing photographs of defaulters in newspapers where warranted.
 
 The focussed and specialised attention that SAMG has been able to bring
 to the task has resulted in substantial recoveries in high value NPAs
 during the year. Besides, the concerted efforts of SAMG have resulted
 in recoveries of dues to the Bank this year, some of which are decades
 old.
 
 The skills of officials posted in SAMG and other recovery units are
 constantly upgraded and honed by:
 
 - Regular training programmes tailor made to the requirements of SAMG
 organized by the Banks Apex Training Institutes
 
 - Arranging for Guest Lectures by acknowledged experts in the field
 (For e.g. Shri R. C. Kohli, an experienced banker and author of
 Practical Approach to Recovery Management in Banks and Financial
 Institutions and Securitisation Act has addressed our officials on
 several occasions)
 
 - Regular conclaves are held where matters of topical relevance are
 discussed. Individual accounts are also reviewed and strategies decided
 to expedite recoveries in these accounts. Feedback from operating
 functionaries is regularly elicited on how the Group can further
 optimize operations.
 
 - Top Management of the Bank, including the Chairman, regularly
 review all high value accounts and suggest ways and means to resolve
 these NPAs.
 
 The Bank took an important initiative during the year to facilitate
 expeditious credit decisions, such as approving OTSs, fixing reserve
 prices for auction of seized properties, etc., within SAMG. Till
 recently, all matters requiring sanctions/approvals were routed through
 Credit Committees of other Business Groups.  A Stressed Assets
 Management Credit Committee (SAMCC) has now been set up with the sole
 objective of considering proposals of SAMG for sanction or approval.
 This dedicated Credit Committee is a valuable resource for SAMG as
 credit decisions are taken immediately and communicated at once to
 operating functionaries resulting in swifter recoveries.  During the
 year, the Bank had also announced a scheme where nominal incentives
 were paid to officials instrumental in recovering amounts written off
 over 5 years ago, which yielded significant results and the Bank was
 able to recover more than Rs. 1000 crores during this year from written
 off accounts.
 
 Notwithstanding the harsh and challenging environment we have seen in
 the year gone by, the determined and focussed efforts of the SAMG and
 SAMBs/SARBs/SARCs has contributed to a deceleration in NPA accretion.
 This was particularly evident during Q4 of 2012-13 when Gross and Net
 NPA percentages were brought down to 4.75% and 2.10% respectively from
 the peak levels of 5.30% and 2.59% witnessed during the year. In fact,
 Q4 also saw a reduction in gross NPAs by Rs.2, 269 crores in absolute
 terms. More details are furnished below:
 
 Table 24: Break -up of NPA                          (Rs. In cr.)
 
 NPA                               FY 11-12    Q3 FY13    FY 12-131
 
 Gross NPAs                          39,676     53,458       51,189
 
 Gross NPA%                            4.44       5.30         4.75
 
 Net NPA%                              1.82       2.59         2.10
 
 Fresh Slippages                     24,712     26,126       31,993
 
 Cash Recoveries/ Upgradations        9,618      9,167       14,885
 
 Write Offs                             744      3,176        5,594
 
 Recoveries in Written Off Accounts     962        673        1,066
 
 While asset quality is expected to be under pressure during FY 13-14
 also, the SAMG and other recovery outfits of the Bank are fully geared
 up to meet the challenges of the future.
 
 II SUPPORT & CONTROL OPERATIONS
 
 II.1.  INFORMATION TECHNOLOGY
 
 - CORE BANKING PROJECT
 
 The CBS environment is benchmarked to establish the capability to
 support one billion accounts, over 250 million transactions in a day,
 and delivering a throughput of over 17,000 transactions per second.
 
 Several new features were rolled out in CBS during the year for making
 the system more user-friendly. Two new ATM cards on RUPAY platform.
 Password protected statements in PDF format of Savings Bank, Current
 Account, Cash Credit accounts are now being sent to the e-mail
 addresses of customers. Functionalities for issuance of TDR/ STDR
 through ATM, online capture of 16-digit Census Code have been developed
 in CBS. Biometric authentication as a second-factor authentication
 method is being 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. Disaster Recovery Drills are
 conducted regularly as part of the implementation of the Business
 Continuity Management System (BCMS). The first comprehensive Integrated
 Business Continuity Exercise (IBCE) during the current financial year
 was tested on 8th & 9th December 2012 and the second on 17th & 18th
 February 2013.
 
 - ATM
 
 SBI has issued more than 11.00 crores Cards out of which around 8.54
 crores Cards are transacting regularly on the ATMs. The State Bank
 Groups ATM operations run from two Switches. The BASE24 Switch has
 recently been upgraded and it can now handle close to 50,000 ATMs. The
 ATM footprint is being enlarged substantially through Brown Label ATMs
 which are being rolled out as totally outsourced initiative under the
 guidance of Ministry of Finance. A wide variety of ATMs and various
 types of cards have been deployed. 581 new Cash Deposit Machines have
 been installed to facilitate customers to deposit the cash.
 
 - INTERNET BANKING
 
 Internet Banking service is available through the Banks website
 https://www.onlinesbi.com.
 
 The Banks internet banking solution is a comprehensive product for
 both retail and corporate users. The following major new features have
 been added during current financial year 2012-13:
 
 Personal Internet Banking:
 
 IPO(Debt) AS BA facility, Multi- lingual image based keyboard for
 profile password, Voice OTP for J&K customers for doing Internet
 Banking transactions etc.
 
 Corporate Internet Banking:
 
 Rakhsha IRCTC - Ticket Booking by Paramilitary Forces, Central Plan
 Scheme Monitoring System (CPSMS) facility , EPF payments by Corporate
 customers, Second Factor authentication through Hardware token for
 login by corporate customers, Merchant pre-approved transactions for
 corporate, Foreign Currency Loan Application
 
 - IT - FOREIGN OFFICES
 
 145 Foreign Offices of the Bank in 25 countries use the Finacle suite
 of applications that include Finacle Core, Finacle Treasury and Finacle
 Internet Banking Applications. 134 ATMs and 2 Kiosks have been
 installed at Foreign Centres and 7.63 lakh Debit Cards have been
 issued.  Around 1.43 lakh users have been registered for Internet
 Banking.
 
 - ENTERPRISE DATA WAREHOUSE DEPARTMENT
 
 Data Marts relating to the various areas like Risk Management, Customer
 Analytics, Assets and Liability Management etc. have been designed.
 Dashboards have been developed and deployed for use by the executives
 for decision making. Campaign Management Tool has been implemented and
 campaigns through emails/ SMS have been launched by the various
 Business Units targeting customers under various segments. Customer
 One view (COV) has been developed for Corporate Account Group, Mid
 Corporate Group and Small and Medium Enterprise Accounts for better
 monitoring. Data Mining and Analytics are being performed in the areas
 of business development, Control, Performance and Profitability.
 
 - NETWORKING
 
 The Bank has implemented a secured, robust WAN architecture network
 connecting branches/ offices and ATMs of State Bank Group through
 leased lines, VSATs and CDMA technology. While leased lines and VSATs
 have been procured for primary links for connectivity, ISDN lines or
 VSATs have been provided as backup. The bandwidth of primary VSATs has
 been upgraded from 32 Kbps to 64 Kbps at all locations. The Bank is in
 the process of upgrading leased lines at all locations with bandwidth
 of 64 Kbps to 128 Kbps.
 
 II.2.  RISK MANAGEMENT & INTERNAL CONTROLS
 
 - Risk Management Structure in SBI: The Risk Governance structure in
 place in the Bank is as under: Table 25: Risk Governance structure in
 the Bank
 
 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 visualizes empowerment of Business
 Units at the operating level, with technology being the key driver,
 enabling identification and management of risk at the place of
 origination.
 
 As envisaged in the Risk Governance Structure, Credit Risk , Market
 Risk, Operational Risk, Group Risk and Enterprise Risk Management
 Departments alongwith Basel Implementation and Information Security
 Departments are placed under Chief General Manager (Risk Management)
 under the control of Deputy Managing Director and Chief Credit & Risk
 Officer to ensure Integrated Risk Management for various Risks
 
 - Credit Risk Management:
 
 - The Bank has strong credit appraisal and risk assessment practices
 in place. The Bank uses various internal Credit Risk Assessment Models
 for assessing credit risk under different exposure segments. Internal
 ratings of the bank are subject to comprehensive rating validation
 framework.
 
 - The department tracked 36 industries during FY 2012-13 including
 sectors such as Telecom, Power, Coal, Aviation, NBFC, Textile Sector,
 Iron and Steel and disseminated the same to operating staff for
 informed decision making. Specific studies on Companies/Groups as
 directed by the Banks Board were also conducted.
 
 - The Bank has filed Letter of Intent with RBI for migration to
 Internal Ratings Based (IRB) Approach for Credit Risk. For this
 purpose, new policies and governance structure related to credit risk
 management have been approved by the Risk Management Committee of the
 Board (RMCB).  The governance structure has also been made more robust
 for effective implementation of the IRB.
 
 - Models for estimation of Probability of Default (PD), Loss Given
 Default (LGD) and Exposure at Default (EAD) have been developed.
 
 - Bank regularly conducts stress test on its Credit portfolio and
 Stress Scenarios are regularly updated in line with Industry best
 practices and changes in Macro economic variables.
 
 - Five meetings of Credit Risk management Committee (CRMC) and six
 meetings ofRisk Management committee of Board (RMCB) were conducted
 during the year to review various risk policies, industry guidance and
 exposure norms.
 
 - Market Risk Management:
 
 - 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, equity price, etc.
 The Market Risk management process at the Bank consists of
 identification, and measurement of risks, control measures, monitoring
 and reporting systems.
 
 - The Bank has Board approved policies pertaining to the said risks
 for Trading in Foreign Exchange, Derivatives, Interest Rate Securities,
 Equities and Mutual Fund. Market risks are controlled through various
 risk limits such as Net Overnight Open Position, Modified Duration,
 Stop Loss, Management Action Trigger, Cut Loss Trigger, Concentration &
 Exposure Limits etc mentioned in the respective policies.
 
 - Presently, market risk capital is computed under Standardized
 Measurement Method (SMM).  The Bank has decided to migrate to advanced
 approaches under Basel-II for market risk i.e.  Internal Models
 Approach (IMA) and submitted its Letter of Intent to the Reserve Bank
 of India.  The IMA is a Value at Risk (VaR) based tool for monitoring
 of Banks trading portfolio. The VaR methodology is supplemented by
 conducting stress testing of the trading portfolio at quarterly
 intervals. The Bank is currently conducting parallel run of SMM and IMA
 methodologies.
 
 - The Market Risk at the Bank is monitored and reviewed by the Market
 Risk Management Committee (MRMC) and the Risk Management Committee of
 the Board (RMCB) which meet at least once at quarterly intervals.
 
 - Operational Risk Management:
 
 - 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 Banks 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
 Operational Risk Management Policy of the Bank.
 
 - Important policies, manuals and framework documents in line with
 RBI guidelines on Operational Risk Management Framework (ORMF) and
 Operational Risk Measurement System (ORMS) for migration to Advanced
 Measurement Approach (AMA) are in place.
 
 - The Bank has already submitted its Letter of Intent (LOI) to RBI
 for migration to Advanced Measurement Approach (AMA).
 
 - The Bank-level Operational Risk Management Committee (ORMC), an
 executive committee, reviews the operational risk profile of the Bank
 at quarterly intervals and recommends suitable controls/mitigations for
 managing operational risk in the Bank. The Risk Management Committees
 at all the 14 Circles, Business and Support Groups (NBG, IBG, CBG, MCG,
 GMU & IT) are also in place.
 
 - Committee of Executives on High Value Frauds (CEHVF), headed by the
 Chairman, has been set up during the current year to periodically
 monitor and control high value frauds (Rs.1 crores & above) and alsofor
 mitigation of the same.
 
 - Other executive level Committees viz. Overall Product Committee
 (OPC) and Outsourcing Vetting Committee (OVC) are also in place.
 
 - Group Risk Management:
 
 - Group Risk Management aims to put in place standardised risk
 management processes in Group entities
 
 - The Group Internal Capital Adequacy Assessment Process (Group
 ICAAP) assesses relevant risks and mitigation measures for capital
 assessment, including under stressed conditions. A Group ICAAP Policy
 to ensure uniformity in ICAAP exercises of Group entities is in place.
 
 - A quarterly analysis of risk-based parameters for Credit Risk,
 Market Risk, Operational Risk, Concentration Risk, Liquidity Risk and
 Contagion Risk is presented to Group Risk Management Committee/Risk
 Management Committee of the Board.
 
 - Exposure limits for Large Borrower Exposure and Capital Market
 Exposure as per RBI have been adopted for the Group. Also, limits for
 Unsecured Exposures, Real Estate and Intra-Group Exposures have been
 set by the Bank.
 
 - In order to overhaul the Group Risk Management and adopt global
 best practices, the Bank has embarked upon a Group Risk Management
 Project recently.
 
 - Basel Implementation:
 
 - RBI Guidelines on Basel III Capital Regulations have been
 implemented from April 1, 2013. Bank has put in place appropriate
 mechanism to comply with these guidelines.
 
 - India is one of the first few countries to implement the Basel-III
 guidelines while USA and EU Block, are not yet on board.
 
 - Enterprise Risk Management:
 
 - For assessment of Pillar I risks and Pillar 2 risks such as
 Liquidity Risk, Interest Rate Risk, Credit Concentration Risk, as well
 as adequacy of Capital and overall Risk Management practices under
 normal and stressed conditions, the Bank has comprehensive Internal
 Capital Adequacy Assessment Process (ICAAP) in place.
 
 - As part of the Risk Management Project being undertaken by the Bank
 to transform its role into a Strategic function aligned with Business
 Objectives, Bank has initiated Enterprise Risk Management (ERM)
 framework.
 
 - Global best practices like Risk Appetite, Risk Aggregation and Risk
 based Performance Management System including Economic Capital and Risk
 Adjusted Return on Capital (RAROC) will also be covered within the ERM
 project recently taken up.
 
 - Information Security:
 
 - Bank has implemented a robust IT policy and Information System
 Securitypolicy which are in line with the international best practices.
 These policies are reviewed periodically and suitably strengthened in
 order to address emerging threats.
 
 - Regular security drills and employee awareness programs are
 conducted to ensure security and increase awareness among staff.
 Business Continuity Management Systems (BCMS) has been implemented at
 Global IT centre, Belapur.  Bank is also among the forerunners in the
 process of implementing the new RBI guidelines for the Banking Sector
 in this area.
 
 - Internal Controls
 
 The Bank has in-built internal control systems with well-defined
 responsibilities at each level. It conducts internal audit through its
 Inspection & Management Audit Department. Audit Committee of the Board
 (ACB) exercises supervision and control over the functioning of the
 I&MA department. The inspection system plays an important and critical
 role in identification, control and management of risks through the
 internal audit function which is regarded as one of the most important
 components of Corporate Governance. The Bank carries out mainly two
 streams of audits - Risk Focused Internal Audit (RFIA) and Management
 Audit covering different facets of Internal Audit requirement. All
 accounting units of the Bank* are subjected to RFIA. Management Audit
 covers administrative offices and examines policies and procedures
 besides quality of execution thereof.
 
 *Besides the above, the department conducts Credit Audit, Information
 Systems Audit (Centralised IT Establishments & Branches), Home Office
 Audit (audit of foreign offices) and Expenditure Audit (at
 administrative offices) and oversee policy and implementation of
 Concurrent Audit (domestic & foreign offices) and Circle Audit.  To
 verify the level of rectification of irregularities by branches, audit
 of compliance at select branches is also undertaken. During the period
 01.04.2012 to 31.03.2013 - 8895 domestic branches / BPR entities were
 audited under Risk Focussed Internal Audit.
 
 - Risk Focussed Internal Audit:
 
 I&MA Dept undertakes a critical review of the entire working of auditee
 units through RFIA an adjunct to risk based supervision as per RBI
 directives. All domestic branches have been segregated into three
 groups (Group I, II & III) on the basis of business profile and risk
 exposures. While audit of Group I branches is administrated by Central
 Audit Unit (CAU), audit of branches in Group II & III category and
 Business Process Re-engineering (BPR) entities are conducted by
 thirteen Zonal Inspection Offices, each of which is headed by a General
 Manager.  During the period 01.04.2012 to 31.03.2013 - 8895 domestic
 branches / BPR entities were audited under Risk Focused Internal Audit.
 
 - Management Audit:
 
 With the introduction of RFIA, Management Audit has been reoriented to
 focus on the effectiveness of risk management in the processes and the
 procedures followed in the Bank. Management Audit universe comprises of
 Corporate Centre establishments / Circle Local Head Offices / Apex
 Training Institutions, Associate Banks and Regional Rural Banks
 sponsored by the Bank (RRB).
 
 - Credit Audit:
 
 Credit Audit aims at achieving continuous improvement in the quality of
 Commercial Credit portfolio of the Bank through critically examining
 individual large commercial loans with exposures of Rs. 10 Crs and
 above annually. Credit Audit System also provides feedback to the
 business unit by way of warning signals about the quality of advance
 portfolio in the unit and suggests remedial measures. Credit Audit also
 carries out a review (Loan Review Mechanism) of all the pre- sanction
 and sanction process of all individual advances above Rs. 5 Crs within
 6 months of sanction / enhancement / renewal. During the period
 01.04.2012 to 31.03.2013 - 7329 accounts have been subjected to Credit
 Audit on-site.
 
 - Information System Audit:
 
 All the Branches are being subjected to Information System (IS) Audit
 to assess the IT related risks as part of RFIA of the branch. Is Audit
 of centralized IT establishments is carried out by a team qualified
 officials. During the period from 01.04.2012 to 31.03.2013, IS audits
 of 13 centralised IT establishments were completed.
 
 - Foreign Offices Audit:
 
 During the period from 01.04.2012 to 31.03.2013, Home Office Audit was
 carried at 49 branches, Management Audit at 11 Representative offices /
 Country Head Offices & 4 Subsidiaries / Joint Ventures.
 
 - Concurrent Audit System :
 
 Concurrent Audit System is essentially a control process integral to
 the establishment of sound internal accounting functions effective
 controls and overseeing of operations on continuous basis. Concurrent
 Audit System is reviewed on an on-going basis as per the RBI directives
 so as to cover Banks Advances and other risk exposures as prescribed
 by RBI. I&MA department prescribes the processes, guidelines and
 formats for the conduct of concurrent audit at branches and BPR
 entities.
 
 - Circle Audit:
 
 Circle Audit which is a delegated audit covers low risk areas and is
 conducted between two RFIAs.  This enables auditee unit to be better
 prepared better for the RFIA.
 
 11.3.  VIGILANCE
 
 The essential function of Vigilance Administration in the Bank is not
 only to check against non- compliance of rules & regulations by
 initiating suitable disciplinary action for serious transgressions, but
 also to devise and implement various measures of preventive vigilance
 by reviewing the systems & processes to ensure a higher effectiveness
 and the least vulnerability.  The concept of Vigilance as an
 investigative process and an exercise for punitive action has over time
 evolved to that of Vigilance for Corporate Growth, the emphasis
 getting shifted from punitive vigilance to Preventive and Proactive
 Vigilance through an active participation of all concerned.
 
 (i) Preventive Vigilance Committee (PVC) Meetings being held at the
 branches and the BPR outfits and (ii) 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.
 
 The number of vigilance cases brought to conclusion during the year
 2012-13 is 1508, as compared to 1117 during 2011-12.
 
 Fraud Prevention & Monitoring
 
 - Monitoring of transactions is done with a view to submit critical
 reports to Financial Intelligence Unit - India, as mandated vide
 Prevention of Money laundering Act, 2002.
 
 - Bank is observing 1st August every year as KYC Compliance and
 Fraud Prevention Day to maintain appropriate awareness across the Bank
 as also to create proper understanding of KYC issues among the members
 of Public.
 
 - Bank has taken several measures with a view to strengthening
 internal control mechanism to prevent frauds.
 
 11.4.HUMAN RESOURCES
 
 Human Resources are a very important part because of the people
 intensive nature of the banking industry.
 
 Table 26: Staff Strength
 
                          Officers   Assistants   Subordinate    Total
                                                  staff
 
 As on 31.3.2012            80,404      95,715      39,362     2,15,481
 
 Less:
 Retirements / Attrition     3,059       4,107       2,412        9,578
 
 Add / Less (-) due to 
 promotion of clerical 
 staff to officers grade     2,604 (+)   2,604 (-)       -            - 
 
 Add: New Addition             847      20,682         864       22,393
 
 As on 31.3.2013           80,7961   1,09,6861      37,814     2,28,296
 
 In order to take full advantage of the expansion of the branch network
 and also to mitigate staff shortage, particularly at our rural and
 semi-urban branches, the Bank added 20,682 new Assistants. More than 30
 lakhs candidates appeared for the test and the Bank chose the best and
 the brightest candidates. Many of the new assistants are holding good
 academic qualification including professional qualifications of
 computer engineering, MBA, etc. Apart from lowering the average age,
 the young recruits have brought a fresh attitude to the work. We
 welcome the new entrants and believe that they will ensure a strong
 future for the Bank.
 
 The Bank also advertised for recruitment of 1500 Probationary Officers
 and an unprecedented 17 lakhs candidates applied for the same. This
 only shows that the Bank is now the employer of choice of the young and
 educated population of the country.
 
 Improvement in employee productivity:
 
 The large-scale recruitment of Gen-next employees in the officers as
 well as in the assistant grade have not only brought 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 increasing growth in business and profitability for the
 Bank.  Consequently, both business per employee and also profit per
 employee went up significantly during the year.
 
 The addition of new manpower in the Assistant category during the year
 happened only in January- March 2013 quarter and these employees are
 now inducted for full scale work in the bank after initial training and
 are ready to contribute towards further growth in business.
 
 Improvement in work culture: The Management initiated administrative
 action against frivolous agitations by certain categories of officers.
 State Bank officers are on the best terms and conditions among all the
 banks in the public sector. It is ironic that still some categories of
 officers chose to conduct agitation only in SBI to the exclusion of
 other banks. The Bank is a caring and considerate employer. Therefore,
 in our view, there is no case for disruptive agitation exclusively in
 SBI, when issues are to be decided at the industry level. Consequent
 upon the above administrative action, the demonstrations within the
 Bank premises have stopped.
 
 Periodic consultative meetings were held with the Officers Associations
 / Staff Unions and the SC-ST Staff Welfare Association as part of the
 constructive dialogue for understanding and addressing grievances of
 various categories of employees. These consultations are done both at
 Corporate Centre as also at Circles.
 
 Table 28: Reservation in employment
 
 Category                Total        SC        ST        PWD
 
 Officers                80,796     13,824     5,215        485
 
                                    (17.11%)   (6.45%)    (0.60%)
 
 Assistants            1,09,686     18,226     8,745      1,724
 
                                    (16.62%)   (7.97%)    (1.57%)
 
 Sub-staff               37,814     11,500     2,804        193
 
                                    (30.41%)   (7.42%)    (0.51%)
 
 Total                 2,28,296     43,550    16,764      2,402 
 
                                    (19.08%)   (7.34%)    (1.05%)
 
 Bank provides reservation to SC, ST, & 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.
 
 Other Initiatives
 
 Several perquisites like leased accommodation, provision of mobile
 phones, Group Insurance etc. were significantly improved for all
 categories of staff during the year, which besides, being a great
 motivational factor in improving the employee productivity, were
 indicative of a healthy employer-employee relationship.
 
 During the year, Inter-Circle Tournaments were also successfully
 arranged in the field of Hockey, Volleyball and Basketball at Bhopal,
 Chennai and Hyderabad respectively with the active participation by the
 employees representing all the 14 Circles.
 
 II.5.  Strategic Training Unit (STU)
 
 The Banks training apparatus comprises of the following:
 
 Apex Training Institutions (ATI): State Bank Staff College - Hyderabad,
 State Bank Academy - Gurgaon, State Bank Foundation Institute (Chetana)
 - Indore, State Bank Institute of Rural Development - Hyderabad, State
 Bank Institute of Information and Communication Management - Hyderabad
 State Bank Learning Centres: 47 Learning Centres spread across 19
 states of the country.
 
 Further, the Bank has acquired 10 acres of land in the prime
 institutional area at Rajarhat New Town, Kolkata from WBHIDCO (West
 Bengal Housing Infrastructure Development Corporation Limited) at a
 cost of Rs. 58 crores. The land is located close to the Kolkata
 Airport. Efforts are under way to construct a state of the art full
 scale residential apex training institute.  This would help correct
 regional imbalances as participants from eastern and north eastern
 region would not have to travel long distance for undergoing training.
 
 In order to raise the standards of training and also to familiarize the
 Bank officials in the new and sophisticated techniques of financial
 management like mergers, acquisitions overseas and also in-depth
 analysis of financial statements, the Bank has taken the help of
 outside experts, who along with our senior retired officials, are
 conducting advanced training courses for officials handling credit and
 faculty members, for imparting sophisticated learning. The aspiration
 is that our faculty at the training institute should progressively be
 able to customize these programs and conduct the in-house training.
 
 Training Overseas:
 
 Recognising the need for more advanced training and particularly in
 areas of strategic management, which may not be completely provided by
 the Banks in- house training apparatus, the Bank deputed its senior
 executives for training in short duration Executive Development
 Programmes to reputed institutes both in India and overseas.
 
 Table 29: Senior Excutives Trained Overseas
 
                   Overseas    Training Institutes 
                   training    in India
 
 MDs / DMDs            18            --
 
 CGMs                  37            --
 
 GMs                   29            62
 
 DGMs                   9           228
 
 Total                 93           290
 
 In fact, the senior officials were given an opportunity of selecting
 both the training as also the university / institute they wanted to
 attend. The Institutions/ universities where officials were deputed
 include reputed names like Harvard, Stanford, Wharpon School of
 Management Studies, Indian Institute of Management etc. The Policy of
 the Bank is that every single employee in every grade must attend at
 least one training programme every year. 1.76 lakhs employees have been
 given institutional training during the year, covering 90% of the
 Officers and 60% of the Assistants.
 
 Several articles have been published by our Research officers/faculty
 members in internal and reputed external journals such as Bancon
 compendium, Indian Banker, Financial Planning Journal etc.
 
 Our efforts to inculcate a self learning culture in the Bank through an
 e-Learning portal which has over 280 lessons currently, has yielded
 good results and more than 70000 employees are using the portal while
 94% have registered. State Bank Training Management System (SBTMS), a
 comprehensive database system in place, enables viewing of training
 calendars of any ATI/SBLC, programme timetable, individual training
 history, trainee feedback and self nomination on line.  Knowledge
 Helpline, has been established to answer, knowledge related queries.
 
 II.6.  OFFICIAL LANGUAGE
 
 Various efforts were made during the year for improving and increasing
 Official Language implementation at various levels in the Bank. After
 providing for the facility to work in Hindi on the Core Banking
 Solution (CBS), Standard Encoding Unicode facility was uploaded on all
 the computers of branches and offices of the Bank. Training on the
 usage of Hindi in Unicode has been given to majority of staff members
 during the year and thus the usage of Hindi on computers has now become
 much easier for staff members in the Bank. For encouraging the staff
 members to use Hindi in their day to day work, various Functional Hindi
 Training Programmes were also conducted for officers and employees
 during the period under review.
 
 The work of bilingualisation of the Banks corporate and internet
 banking websites is in progress. Different information and procedural
 manuals in HRMS related to staff members have been provided in
 bilingual, i.e.  in Hindi and English and thus the use of HRMS has
 become much easier for all the employees especially for the subordinate
 staff members. The service desk queries asked in Hindi are being
 replied in Hindi only. Similarly, now information at the Call Centers
 of the Bank is being provided in Hindi. This year the total number of
 ATM hits in Hindi was 66674049 as compared to 52063356 hits last year,
 thus recording an impressive increase of 28.04% which shows the rising
 interest of our customers in the usage of Hindi in alternative channels
 
 II.7.  CORPORATE SOCIAL RESPONSIBILITY (CSR) 
 
 Corporate Social Responsibility:
 
 1.  The Bank keeps aside 1% of its net profit for corporate social
 responsibility and the endeavour is to have full achievement of the
 same.
 
 2.  The Bank CSR policy involves donation under the following major
 categories:
 
 i) National donations to Prime Ministers and Chief Ministers Relief
 Funds for natural and other calamities,
 
 ii) Contribution to organizations having exemption under 80G of the
 Income Tax Act largely for equipment and vehicles,
 
 iii) Distribution of fans and water purifiers to neighbourhood schools.
 
 During the year we are happy that the target of donating 1% of the net
 profits to CSR, which has eluded the Bank earlier, was not only fully
 achieved but was surpassed.
 
 Table30: CSR spend          (Rs. in cr.)
 
                        2012       2013
 
 1% of net profit         82        117
 
 CSR Spent                71        123
 
 3. Other Flagship programmes:
 
 Looking to the deep inconvenience and discomfort students faced in hot
 summer in classrooms without the fans, the Bank donated 1,40,000 fans
 to 14,000 schools. The methodology was that every branch of the Bank
 adopted a school in its neighbourhood attended by students from modest
 background and installed 10 fans and one water purifier. This strategy
 gave wide reach to the activity and every single region of the country
 having SBI branch had schools in the vicinity benefitting from donation
 of fans and a water purifier.
 
 Table31: Donation of fans and water purifiers 
 
                                    No. of Water
                    No. of Fans     Purifiers 
 
 2012-13             1,40,000          43,161
 
 The Bank prefers to support largely with community assets as the
 benefits of those are shared by all.  These steps have created
 tremendous goodwill in the community and many of our branch managers
 have been invited to preside over the annual functions of neighbourhood
 schools. We consider this to be a constructive bond between the Bank
 and the community. We are happy to make the lives of our young citizens
 comfortable and healthier.
 
 To help in delivering quality healthcare and transportation of patients
 and doctors which is a challenge especially in non metro areas, Bank
 has donated 313 ambulances and medical vans. To help children
 especially the physically handicapped children, Bank has distributed 51
 school buses/vans.
 
 Some of the notable beneficiaries of Banks support have been the
 following institutions like Aravind Eye Hospital, Chennai, Tata Medical
 Centre, Kolkata, N.  Swain Memorial Trust, Hyderabad, Sankara
 Nethralaya, Chennai, St. Xaviers College, Mumbai etc.
 
 Environment friendly initiatives:
 
 The Bank has also supported several initiatives in installing solar
 lamps in many places largely in the rural areas not having dependable
 electricity supply.
 
 III ASSOCIATES AND SUBSIDIARIES
 
 State Bank Group, with a network of 20325 branches, including 5509
 branches of its five Associate Banks, dominates the banking industry in
 India. In addition to banking, the Group, through its various
 subsidiaries, provides a whole range of financial services, which
 include Life Insurance, Merchant Banking, Mutual Funds, Credit Card,
 Factoring, Security trading, Pension Fund Management, Custodial
 Services, General Insurance (Non Life Insurance) and Primary Dealership
 in the Money Market.
 
 1 Associate Banks
 
 The five Associate Banks of SBI had a market share of 6.16% in deposits
 and 6.32% in advances as on last Friday of March 2013.
 
 Table32: Performance Highlights of Associate Banks (Overall): 
 
                                                   (Rs. in cr.)
 
                                  As on       As on         Change 
                                  31.03.2013  31.03.2012      (%)
 
 Total Assets                      5,04,556     4,34,947     16.00
 
 Agg. Deposits                     4,17,657     3,61,589     15.51
 
 Total Advances                    3,40,321     2,89,148     17.70
 
 Operating Profit                     8,803        8,214      7.17
 
 Net Profit                           3,678        3,626      1.43
 
 Credit Deposit                       81.48%       79.97%      151 bps
 Ratio
 
 Capital Adequacy Ratio               11.85%       13.16%-     131 bps
 
 Gross NPA                           11,589        8,538     35.73
 
 Net NPA                              6,143        4,418     39.04
 
 Return on Equity*                    14.33%       15.64%     -131 bps
 
 *Annualised
 
 Important Developments during the year in Associates, Subsidiaries and
 Joint Ventures:
 
 - SBI Capital Markets Ltd has decided to invest in equity of its
 subsidiary, viz, SBICAP Securities Ltd, to the tune of Rs. 50 crores in
 in two tranches of Rs. 25 crores each. The amount of 1st tranche has
 been invested on 4th May 2012.
 
 - Our JV Company, GE Capital Business Process Management Services (P)
 Ltd. has bought back a total of 33,98,996 shares of Rs.10/- each @
 Rs.141/- per share, aggregating Rs.47.92 crores in January 2013.  The
 share of SBI in the buy back is 13,59,598 shares worth Rs.  19.17
 crores.
 
 - An additional capital of Rs.5 crores each has been infused by SBI
 Funds Management (P) Ltd and SBI Capital Markets Ltd. (Total Rs.10
 crores) in SBI Pension Fund Pvt Ltd (SBIPF) during Oct12.
 Consequently, the stake of SBI in SBI PF has come down from 90% to 60%.
 
 2 SBI Capital Markets Limited (SBICAP)
 
 SBICAP is Indias 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.
 
 SBICAP, on a standalone basis, posted a PBT of Rs.418.39 crores during
 the FY 13 as against Rs.364.84 crores earned in FY 12 and a PAT of
 Rs.296.00 crores in FY 13 as against a PAT of Rs.250.96 crores during
 FY 12.
 
 SBICAP and its 4 subsidiaries together, posted a PBT of Rs. 444.37
 crores during the FY 13 as against Rs. 385.87 crores earned in FY 12
 and PAT of Rs. 313.96 crores in FY 13 as against Rs. 265.31 crores in
 FY 12.
 
 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
 Asias India Loan House of the Year 2012 and Business World Award for
 the Deal of the Year 2012 for Videocon. SBICAP continues to attain the
 premier spot in industry rankings, the highlights being:
 
 - Ranked No. 1 Global Mandated Lead Arranger in Project Finance Loans
 by Dealogic.
 
 - Ranked No. 1 Global Project Finance Bookrunner by Thomson- Reuters.
 
 - Ranked No. 1 in the number of issues handled for the public issue
 of debt in FY 2013 by PRIME
 
 2.1 SBICAP Securities Limited (SSL)
 
 SSL, a wholly owned subsidiary of SBI Capital Markets Ltd., 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 & Distribution of other financial products like Mutual
 Funds, etc. SSL has 100 branches and offers Demat, e-broking, e-IPO and
 e-MF services to both retail and institutional clients. SSL currently
 has more than 3.18 lacs customers in their books. The Company has
 posted a PAT of Rs.2.42 crores during the FY 13 as against a PAT of
 Rs.4.03 crores during the FY 12.  The profits are lower on account of
 subdued capital markets.
 
 2.2 SBICAPS Ventures Limited (SVL)
 
 SVL is a wholly owned subsidiary of SBI Capital Markets Ltd. SVL earned
 a Net Profit of Rs.0.35 crores during FY 13 as against Rs. 0.23 crores
 earned during FY 12.
 
 2.3 SBICAP (UK) Ltd. (SUL)
 
 SUL is a wholly owned subsidiary of SBI Capital Markets Ltd. SUL has
 booked Total Revenue of Rs. 17.26 crores and has posted a Net Profit of
 Rs.  10.76 crores during FY 13 as against Total Revenue of Rs. 9.18
 crores and Net Profit of Rs. 4.82 crores during FY 12 despite the
 global recessionary scenario.
 
 SUL is positioning itself as a relationship outfit for SBI Capital
 Markets in UK and Europe.  Relationships are being built with FIIs,
 Financial Institutions, Law Firms, Accounting Firms, etc to market the
 business products of SBICAP.
 
 2.4 SBICAP TRUSTEE Co. Ltd. (STCL)
 
 SBICAP Trustee Co Ltd (STCL), a wholly owned subsidiary of SBI Capital
 Markets Ltd., which commenced security trustee business with effect
 from 1st August 2008 has earned a gross income of Rs.14.93 crores and a
 Net Profit of Rs.7.51 crores during FY 13 as against Gross Income of
 Rs.11.63 crores and Net Profit of Rs. 5.86 crores during FY 12.
 
 3 SBI DFHI Ltd. (SBI DFHI)
 
 SBI DFHI Ltd is one of the largest standalone Primary Dealers (PD) with
 a pan India presence.  Besides Government securities, it also deals in
 money market instruments, non G-Sec debt instruments etc. As a PD, its
 business activities are stipulated/ regulated by RBI.
 
 SBI group holds 72.17 % share in the Company, which is a primary dealer
 to support the book building process in Primary Auctions and provide
 depth and liquidity to secondary markets in Gsecs. For the period ended
 31st March 2013, the Companys PAT was Rs.80.28 crores as against
 Rs.43.50 crores earned during FY 12.
 
 The market share of SBIDFHI amongst all market participants was 3.64%
 as on March 2013.
 
 SBI DFHIs market share amongst Standalone PDs has increased from 16.45
 % in March 2012 to 22.48 % in March 2013.
 
 4 SBI Cards & Payments Services Pvt. Ltd. (SBICPSL)
 
 - SBICPSL, the only 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.
 
 - The Cards in Force (CIF) of the Company stood at 25.70 lacs as at
 31st March 2013 The Average receivables stood at Rs.3,294 crores as at
 the end of March 2013 as against Rs.2,178 crores at the end of March
 2012.
 
 - The Company has posted a net profit of Rs.136.30 crores as on March
 2013 as against Rs.37.90 crores earned during the year ended March
 2012. This performance was primarily driven by asset based revenue
 growth, substantial reduction in credit losses and better collection
 performance.
 
 - SBICPSL won Gold Award in the Readers Digest most trusted brand
 2012 survey under the finance category.
 
 - SBICPSL has crossed Rs. 1000 crores mark on monthly retail spends
 in current financial year, which is the highest since inception.
 
 5 SBI Life Insurance Company Limited (SBILIFE)
 
 - SBI Life is Joint Venture Company between SBI and BNP Paribas
 Cardiff in which SBI holds 74% stake.
 
 - SBI Life has a unique multi-distribution model comprising
 Bancassurance, Retail Agency & Institutional Alliances and Group
 Corporate Channels for distribution of insurance products.
 
 - SBI Life emerged as the private market leader in New Business
 Premium for FY 13.
 
 - SBI Life has a market share of 16.85 % in respect of New Business
 Premium (NBP) amongst Private Life Insurers. Overall market share
 (including Life Insurance Corporation of India) of SBI Life in terms of
 NBP stood at 4.84 % as on 31st March, 2013.
 
 - SBI Life launched Dynamic Insurance products catering to different
 customer segments, initiated online term plans with - E-Shield the
 first significant foray into online distribution and Grameen Bima
 catering to the micro insurance sector aimed at financial inclusion.
 
 - SBI Life recorded a PAT of Rs.622.20 crores during FY 13 as against
 Rs.555.80 crores during FY 12, recording a YOY growth of 12 %.
 
 - The Assets under Management of SBI Life recorded a growth of
 11.50% YoY to reach Rs.51912 crores as on 31st March 2013.
 
 - SBI Life expanded its branch network by adding 44 branches during
 the year bringing the total number of branches to 758.
 
 - SBI Life has undertaken various CSR projects during the year. Tree
 plantation drive witnessed a plantation of 6,309 trees till date. Gift
 a Smile and Project Scholar are initiatives to contribute towards
 economically disadvantaged students.  SBI Life took an initiative of
 enabling mentally challenged children of Swayam Siddh. Donations have
 been made to Leprosy eradication centres.
 
 The following are some of the awards / recognitions received by the
 Company during 2012-13:
 
 - Best Employer Brand Award at IPE BFSI Awards
 
 - Best Presented Annual Report Award by South Asian Federation of
 Accountants (SAFA).
 
 - Dun & Bradstreet
 
 - PSU Award
 
 2012-Insurance Sector
 
 - The Indian Insurance Awards 2012 for the categories -Under- served
 Market Penetration Award and Claims Service of the Year Award 2012.
 
 - SBI Life has won Indian Merchant Chambers Ramakrishna Bajaj
 National Quality Award 2012 in Services category indicating its
 commitment towards quality and organizational excellence.
 
 6. SBI Funds Management (P) Ltd. (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 5 million investors.
 
 - SBI Mutual Funds celebrated 25 Years of Investment Management in FY
 13.
 
 - SBIFMPL recorded a complete turnaround in investment performance
 with over 92% of equity scheme AUM in top 2 quartiles, and 41% were in
 top quartile.
 
 - SBIFMPL posted a PAT of Rs.85.68 crores during FY 13 as against
 Rs.60.52 crores earned during FY 12.
 
 - The average Assets Under Management (AUM) of the company during
 the quarter ended March 2013 quarter stood at Rs.54,905 crores as
 against Rs.42,042 crores during Mar 2012 quarter registering an YoY
 growth of 30.60%.
 
 - SBIFMPL launched first Exchange Traded Fund- SBI Sensex Fund, this
 Fund also qualifies for availing benefits under Rajiv Gandhi Equity
 Savings Scheme during the FY 13.
 
 - SBIFMPL launched SBI Edge Fund, a fund that gives benefit of 3
 asset classes viz. Equity, Gold and Debt in one fund.
 
 7 SBI Global Factors Ltd. (SBIGFL)
 
 - SBIGFL is one of the leading factoring companies in India in both
 domestic as well as export & import factoring.
 
 - The company registered a Profit of Rs. 3.63 crores during the FY 13
 as against a loss of Rs.65.73 crores incurred during FY 12.
 
 8 SBI Pension Funds Pvt. Ltd. (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 2013 were Rs. 11,788 crores (YoY growth of
 96 %).
 
 - The Company maintained lead position amongst Pension Fund Managers
 (6) 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 37 %.
 
 - SBIPF has maintained lead in 7 asset categories in terms of returns
 since inception.
 
 - SBIPF received the following awards during the FY 13:
 
 - Pension Fund of the Year for excellence in performance and
 customer service to subscribers at the Indian Pension Fund Awards-
 2012.
 
 - Award for Financial Inclusion (Pension Category) in Skoch Financial
 Inclusion Awards, 2013.
 
 9.  SBI GENERAL INSURANCE COMPANY LTD (SBIGIC)
 
 - SBIGIC is a joint venture between State Bank of India and IAG
 Australia in which SBI holds 74% stake.
 
 - SBIGIC has completed its Third year of full operations during FY
 13.
 
 - Gross Direct Written Premium stood at Rs. 770.85 crores as at 31st
 March 2013.
 
 - The Company recorded a net loss of Rs. 145.16 crores as against the
 estimated loss of Rs. 164.90 crores during FY 13 and a loss of Rs.
 95.34 crores incurred during the FY 12. The Company is expected to turn
 around during 2014-15.
 
 - SBIGIC has a multi-distribution model comprising Bancassurance,
 Agents, Broker and Direct Channels for distribution of insurance
 products.
 
 10.  SBI SG GLOBAL SECURITIES SERVICES PVT LTD (SBISG)
 
 - SBISG, a joint venture between State Bank of India and Societe
 Generale, was set up to offer high quality custody and fund
 administration services to complete the bouquet of financial services
 on offer by a financial conglomerate.
 
 - SBISG commenced commercial operations in Custody in May 2010 and
 Fund Accounting Services in Sept 2010.
 
 - The Company recorded a net profit of Rs.38.43 lacs during the FY 13
 as against Rs.24.71 lacs during the FY 12.
 
 - The Assets Under Custody as on 31st March 2013 stood at Rs.51,629
 crores, while the Assets Under Administration were at Rs.52,639 crores.
 
 INFORMATION WITH REGARD TO SUBSIDIARIES & JOINT VENTURES AS ON
 31.03.2013
 
 Table 33:Performance Highlights of Domestic Banking Subsidiaries 
 
                                                           (Rs. in cr.)
 
 S.   Name of       SBI Share of          Total    Agg.      Total 
 No   the Bank      ownership             Assets   Deposits  Advances 
                    Amt.         %
 
      State Bank    676.12     75.07       86023      71215     58474
 1    of Bikaner
      & Jaipur
  
      State         367.55       100      139664     117270     92020
 2    Bank of 
      Hyderabad
 
 3    State Bank    628.63     92.33       68739      56712     45980 
      of Mysore
 
      State Bank    445.10       100      108551      88416     75460
 4    of Patiala
 
      State         120.85     75.01      101579      84046     68389
 5    Bank of
      Travancore
 
 Name of            Op.     Net     CD    CAR    Gross    Net    Return 
 the Bank           Profit  Profit  Ratio  %     NPAs %   NPA    on
                                                                 Equity 
                                                            %     %
 
 State Bank of
 Bikaner &
 Jaipur              1713    730    82.11  12.16   3.62    2.27    15.33
 
 State Bank of
 Hyderabad           2788   1250    78.77  12.36   3.46    1.61    17.70
 
 State Bank of
 Mysore              1331    416    81.08  11.79   4.53    2.69    11.05
 
 State Bank of
 Patiala             1619    667    85.35  11.12   3.25    1.62    12.48
 
 State Bank of
 Travancore          1351    615    81.37  11.70   2.56    1.46    14.76
 
 Table 34 : Performance of Non Banking Subsidiaries
 
 S.   Name of the 
      Subsidiary Company    Ownership 
                           (State        % of Ownership    Net Profit
                                                          (Losses) 
 No                         Bank 
                            interest)
                             /Crs                          for the FY 
                                                           2012-131
 
 1    SBI Capital Markets 
      Ltd. (Consolidated)        58.03           100           313.96
 
 2    SBI DFHI Ltd.             139.15         63.78            80.28
 
 3    SBI Payment Services 
      Pvt. Ltd.                   2.00           100           0.0381
 
 4    SBI Mutual Fund Trustee 
      Company Pvt Ltd.            0.10           100             4.20
 
 5    SBI Global Factors Ltd.   137.79         86.18             3.63
 
 6    SBI Pension Funds 
      Pvt. Ltd.                 18.001           60.            (0.74)
 
 Table 35: Performance of Joint Ventures
 
 S.  Name of the
     Subsidiary Company             Ownership     % of       Net Profit
 No.                               (State Bank    Ownership (Losses) 
                                    interest)                for the
                                    Rs. crores               FY 2012-13
 
 1   SBI Funds Management Pvt. Ltd.     31.50         63           85.68
 
 2   SBI Funds Management 
    (International) Pvt. Ltd.(USD)    $ 50000         63  Loss USD 29854
 
 3   SBI Cards & Payment Services
     Pvt. Ltd.                         471.00         60          136.30
 
 4   SBI Life Insurance Company Ltd.   740.00         74          622.20
 
 5   SBI-SG Global Securities 
     Services Pvt. Ltd.                 52.00         65            0.38
 
 6   SBI General Insurance Company 
     Ltd.                              111.00         74         (145.16)
 
 7   C-Edge Technologies Ltd             4.90         49%           1.22
 
 8   GE Capital Business Process
     Mgt. Services Pvt. Ltd.             9.44         40           21.65
 
 9   Macquarie SBI Infrastructure 
     Mgt. Pte. Ltd.                      2.25         45        USD 5.41
 
 10  Macquarie SBI Infrastructure 
     Trustee Ltd.                                      #      USD 56,425
 
 11  SBI Macquarie SBI Infrastructure 
     Mgt. Pvt. Ltd.                     18.57         45            8.03
 
 12  SBI Macquarie SBI Infrastructure 
     Trustee Pvt. Ltd.                  0.025         45           0.007
 
 13  Oman India Joint 50Investment
     Fund-Mgt. Co Pvt. Ltd.              2.30         50            2.53
 
 14  Oman India Joint Investment 
     Fund-Trustee Co Pvt. Ltd.           0.01         50           0.004
 
 # 100 % subsidiary of Macquarie SBI Infrastructure Mgt. Pte. Ltd.
 
 Responsibility Statement
 
 The Board of Directors hereby states:
 
 i.  that in the preparation of the annual accounts, the applicable
 accounting standards have been followed along with proper explanation
 relating to material departures;
 
 ii.  that they have selected such accounting policies and applied them
 consistently and made 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 2013, and of the profit and loss of the
 bank for the year ended on that date;
 
 iii. that they have taken proper and sufficient care for the
 maintenance of adequate accounting records in accordance with the
 provisions of the Banking Regulation Act, 1949 and State Bank of India
 Act, 1955 for safeguarding the assets of the Bank and preventing and
 detecting frauds and other irregularities; and
 
 iv.  that they have prepared the annual accounts on a going concern
 basis.
 
 ACKNOWLEDGEMENT
 
 During the year, Shri G. D. Nadaf, Officer Employee Director, retired
 on attaining superannuation on 31st May 2012. Shri Rashpal Malhotra,
 Director nominated under section 19(d) by Govt. of India retired on 9th
 August 2012. Dr. Subir V. Gokarn, Dy. Governor, RBI Nominee, retired on
 completing his term on 31st December 2012. Shri Dileep C. Choksi,
 Director, elected by Shareholders under Section 19(c) resigned from the
 Board effective from the close of business on 31st December 2012. Shri
 D. K. Mittal, GOI Nominee Director retired on 31st January 2013
 attaining superannuation.
 
 Dr. Rajiv Kumar was re-nominated as Director under section 19(d) by GOI
 w.e.f. 6th August 2012.  Shri Harichandra Bahadur Singh was nominated
 as Director under section 19(d) by GOI w.e.f.  24th September 2012.
 Shri S. K. Mukherjee, was nominated under section 19(cb) as Officer
 Employee Director w.e.f. 4th October 2012. Shri S.  Vishvananthan was
 appointed as Managing Director under section 19(b) w.e.f. 9th October
 2012. Shri Thomas Mathew, elected for the first time from 13th January
 2013 to 24th June 2014 in place of Shri Dileep C.  Choksi.  Shri Rajiv
 Takru was nominated as Govt. Nominee Director vice Shri D. K. Mittal,
 under section 19(e) vide Notification dated 4th February 2013. Dr.
 Urjit R. Patel was nominated as RBI Nominee Director vice Dr. Subir V.
 Gokarn, under section 19(f), vide Notification dated 6th February 2013.
 
 The Directors place on record their appreciation of the contributions
 made by the respective outgoing Directors, namely, Shri G. D. Nadaf,
 Shri Rashpal Malhotra, Dr. Subir V. Gokarn, Shri Dileep C. Choksi and
 Shri D. K. Mittal to the deliberations of the Board. The Directors
 welcome the new Directors Dr. Rajiv Kumar, Shri Harichandra Bahadur
 Singh, Shri S. K. Mukherjee, Shri S. Vishvananthan, Shri Thomas Mathew,
 Shri Rajiv Takru and Dr. Urjit R.  Patel on the Board.
 
 The Directors also express their gratitude for the guidance and
 co-operation received from the Government of India, RBI, SEBI, IRDA and
 other government and regulatory agencies.
 
 The Directors also thank all the valued clients, shareholders, banks
 and financial institutions, stock exchanges, rating agencies and other
 stakeholders for their patronage and support, and take this opportunity
 to express their appreciation of the dedicated and committed team of
 employees of the Bank.
 
                                       For and on behalf of the 
 
                                       Central Board of Directors
 
 Date : 23rd May 2013                  Chairman
Source : Dion Global Solutions Limited
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