State Bank of India Directors Report, SBI Reports by Directors

7/5/2015
StateBankofIndiaDirectorsReport,SBIReportsbyDirectors
DirectorsReport
YearEnd:Mar'14 Mar13
FINANCIALPERFORMANCE
profit
Giventhesystemwideeconomicslowdown,thefinancialperformanceof
theBankduringthefinancialyearended31stMarch,2014,remained
satisfactory.TheBankregisteredagoodgrowthinOperatingProfit
duringthefourthquarteroftheyearascomparedtopreviousquarters.
TheOperatingProfitoftheBankfor201314washigheratRs.32,109.24
crores,ascomparedtoRs.31,081.72croresin201213,anincreaseof
3.31%.
TheBankpostedaNetProfitofRs.10,891.17croresfor201314,as
comparedtoRs.14,104.98croresin201213,i.e.adeclineof22.78%on
thebackofhigherprovisioningrequirement.
Netinterestincome
Duetohighergrowthintheadvancesandinvestmentportfolios,the
grossinterestincomefromglobaloperationsrosefromRs.1,19,655.10
crorestoRs.1,36,350.80croresduringtheyearregisteringagrowthof
13.95%.
TheNetInterestIncomeoftheBankcorrespondinglyregisteredagrowth
of11.17%fromRs.44,329.30croresin201213toRs.49,282.17croresin
201314.
InterestincomeonadvancesinIndiaincreasedfromRs.85,782.26crores
in201213toRs.97,674.91croresin201314registeringagrowthof
13.86%,duetohighervolumes.However,theaverageyieldonadvances
inIndiahasdeclinedfrom10.54%in201213to10.30%in201314.
IncomefromresourcesdeployedintreasuryoperationsinIndia
increasedby15.24%mainlyduetohigheraverageresourcesdeployed.
Theaverageyieldhasalsoincreasedto7.65%in201314from7.54%in
201213.
TotalinterestexpensesofglobaloperationsincreasedfromRs.75,325.80
croresin201213toRs.87,068.63croresin201314.Interestexpenses
ondepositsinIndiaduring201314recordedanincreaseof15.65%
comparedtothepreviousyear.Theaveragecostofdepositshas
increasedby6basispointsfrom6.29%in201213to6.35%in201314,
whereastheaveragelevelofdepositsinIndiagrewby14.55%.
Noninterestincome
Noninterestincomeincreasedby15.69%toRs.18,552.92croresin201314
asagainstRs.16,036.84croresin201213.Duringtheyear,theBank
receivedanincomeofRs.496.86crores(Rs.715.51croresintheprevious
year)bywayofdividendsfromAssociateBanks/subsidiariesandjoint
venturesinIndiaandabroad.
operatingexpenses
Therewasanincreaseof22.43%intheStaffCostfromRs.18,380.90
croresin201213toRs.22,504.28croresin201314.Themainreasons
forincreasewerehigherprovisionforpensionliabilitydueto
revisioninmortalitytablefrom01.04.2013,impactofwhichwas
Rs.2,400.00croresandprovisionforwagerevisiontothetuneof
Rs.1,814.00crores.OtherOperatingExpensesregisteredanincreaseof
21.26%mainlyduetoincreaseinexpensesonrent,taxesandlighting,
lawcharges,postage,telephones,printingandstationery,insurance
andmiscellaneousexpenditure.
provisionsandcontingencies
Majoramountsofprovisionsmadein201314wereasunder:
Rs.14,223.57crores(netofwriteback)fornonperformingassets(as
againstRs.11,367.79croresin201213).
Rs.1,260.69crorestowardsStandardAssets(asagainstRs.749.61croresin
201213),includingthecurrentyear''sprovision,thetotalprovision
heldonStandardAssetsamountstoRs.6,575.43crores.
Rs.5,282.71crorestowardsProvisionforTaxin201314,(asagainst
Rs.5,845.91croresin201213).Rs.563.25croresprovisionsfordepreciation
oninvestments,excludingamortisationofpremiumon''HeldtoMaturity''
category(asagainstRs.961.29croreswritebacktowardsdepreciationon
investmentsin201213).
ReservesandSurplus
AnamountofRs.3,339.62crores(asagainstRs.4,417.86croresin201213)
hasbeentransferredtoStatutoryReserves.
AnamountofRs.216.75crores(asagainstRs.19.17croresin201213)has
beentransferredtoCapitalReserves.
AnamountofRs.4,796.63crores(asagainstRs.6,453.26croresin201213)
hasbeentransferredtootherReserves.
Assets
ThetotalassetsoftheBankincreasedby14.43%fromRs.15,66,211.27
croresattheendofMarch2013toRs.17,92,234.60croresasattheend
ofMarch2014.Duringtheperiod,theloanportfolioincreasedby
15.70%fromRs.10,45,616.55crorestoRs.12,09,828.72crores.Investments
increasedby13.52%fromRs.3,50,877.51crorestoRs.3,98,308.19crores
asattheendofMarch2014.Amajorportionoftheinvestmentwasinthe
domesticmarketingovernmentsecurities.
data:text/htmlcharset=utf8,%3Ctable%20cellspacing%3D%220%22%20cellpadding%3D%220%22%20border%3D%220%22%20width%3D%22740%22%20class%3D%22PT10%22%20style%3D%22padding%
1/24
7/5/2015
liabilities
TheBank''saggregateliabilities(excludingcapitalandreserves)rose
by14.08%fromRs.14,67,327.59croreson31stMarch,2013to
Rs.16,73,952.35croreson31stMarch,2014.Theincreaseinliabilities
wasmainlycontributedbyincreaseindepositsandborrowings.The
Globaldepositsroseby15.94%andstoodatRs.13,94,408.50croresason
31stMarch,2014againstRs.12,02,739.57croresason31stMarch2013.
Theborrowingsincreasedby8.24%fromRs.1,69,182.71croresattheend
ofMarch2013toRs.1,83,130.88croresasattheendofMarch2014.
I.COREOPERATIONS
customerservice
AtSBI,webelievecustomersrepresentthefoundationofour
achievementsacrossdecades.Itistheircontinuingsupportinour
visionthathashelpedusstrengthenourlegacyasthenation''smost
successfulcommercialBank.Therefore,allourstrategiesand
initiativesrevolvearoundthe''Customer''andhis/herpreferencesand
aspirations.
OurCustomerServicelink,available24x7onSBIOnline,hasthe
optionofOnline/OfflineComplaintRegistration.AlsoOnline/Offline
Appreciation/Feedbackportalprovidesthefeelingof''Customer
Delight'',toourcustomers.
TheBankwasthefirstinIndiatointroduceacodeofFairBanking
Practicesinthecountrycalled''TowardsExcellence''.Thecoderefects
theBank''scontinuingcommitmenttoprovideworldclassbanking
servicestoallsectionsofsociety.Towardsthispurpose,SBIhaslaid
downseveralpolicies:
PolicyonGrievanceRedressal
CompensationPolicy
ChequeCollectionPolicy
PolicyonDepositors''Rights
PolicyonSecurityRepossession/CodeofConductforRecoveryAgents
PolicyonMulticityCheque
contactcentre
SBI''sContactCentrecaterstocustomersthroughinboundcallsand
emails.Ithasemergedasastrongalternatechannelandisproviding
followingcustomerservices:
AccountInformationtocustomershavingATMcumDebitCard(Balance
info,lastfivetransactions,amongothers).
DebitCardhotlistingandStatusofthedebitcard,ATMPIN
regenerationrequest.
Informationonproductsandservicesandleadregistration.
Registrationofcomplaints.
Pensionparticulars(BasicPension,Dearnessallowances,statusoflife
Certificate,amongothers).
OnlinetroubleshootingforMobileBanking,InternetBankingand
Mobicash.
StatusofNEFT/RTGSandSBIExpressRemittances.
ContactCentreisavailable24x7through2tollfreehelplinenos.1800
112211/18004253800andtollnumber08026599990.Bankhas4Contact
CentresatVadodara,Bangalore,Agra&kolkata.
ThishelplineprovidesahumaninterfaceoftheBank,thushelpingin
migratingthecustomersfrombranches.Itisestimatedthatithelps
inreducingfootfallsatbranchesbyanaverageof20customers/dayper
branch.
Itishandlingapproximately3.50lakhscalls/dayin12languages
includingHindiandEnglish.Outofthis,CustomerService
Representativesattendapprox.80,000calls,whereastheremaining
callsareservedonselfserviceoptionsthroughInteractiveVoice
ResponseSystem(IVRS).
ItisalsorespondingtoemailsreceivedonmajorSBICorporateIDs
likecontactcentre@sbi.co.in,ibanking@sbi.co.in,
customercare.homeloans@sbi.co.in,feedback.mobicash@sbi.co.in
CustomerDay
InkeepingwithourVisionStatement,SBIstrivestoachieveoneofthe
higheststandardsincustomerservice.Customershavedirectaccessto
relevantAuthorities,ControllersandtheManagementattheapex.Two
daysinamonthareobservedas''CustomerDay'',whenBranchHead&
AdministrationOfficersareavailabletoreceivesuggestionsfrom
customersandresolvetheirgrievances.
TheBank''smandateistoredresscustomergrievanceswithinmaximum
threeweeksofreceipt,asagainsta30daytimelineprescribedinthe
BCSBICode.AllATMrelatedcustomercomplaintsareredressedwithin
sevendays(prescribedbytheRBI).TheBankhasputinplacea
CompensationPolicytocompensateaggrievedcustomersfinanciallyfor
anyslippageinservicesextended.
2/24
7/5/2015
FraudpreventionandMonitoring
TheBankhastakenseveralmeasurestostrengthentheinternalcontrol
mechanismtopreventfrauds.
i.BusinessGroups
A)NationalBankingGroup
B)CorporateBankingGroup
C)MidCorporateGroup
D)InternationalBankingGroup
E)GlobalMarketOperation
A)NationalBankingGroup
TheNationalBankingGroup(NBG)isthelargestbusinessverticalof
theBank,anchoring95.24%oftotaldomesticdepositsand52.05%of
totaldomesticadvances,ason31stMarch,2014.Itisalsothelargest
businessverticalintermsofbranchnetworkandhumanresources.
RBU,PBBU,REH&HDandSMEbusinessunitsarehavingbusiness
portfoliosaboveRupeesOnelakhcrores,each.
exhibit1:Branchexpansiontrend
AsonruralsemiUrbanMetrototal
Urban
31.03.20135,6614,1732,6312,35114,816
Branches3972302641771,068
added
during
FY201314
Branches245415
merged/
closed
31.03.20146,0564,3992,8902,52415,869*
*Excluding24BPR/otheroutfits(RACPCs,CPCs,etc.)exhibit2:NBG
Businessperformance
(Rs.incrores)
particularslevelYTDGrowth
Ason31.03.201231.03.201331.03.2014Absolute(%)
Segmental9,12,84810,47,296*12,09,8981,62,60215.53
Deposits
Segmental4,29,5094,89,216*5,27,48038,2647.82
Advances
(nonfood)
*excludingaccounttransfertoMCGduringFY201314
FinancialInclusion(FI)
TheBankhassetup45,487BusinessCorrespondent(BC)CustomerService
Pointsthroughalliancesbothatthenationalandregionallevel.
TheBankisofferingVarioustechnologicallyenabledproductsthrough
BCchannel,suchasSavingsBank,flexiRD,STDR,remittanceandSBOD
facilities.
TheBankhasachieved100%coverageacross31,729villagesduringFY
201314.Thecumulativecoveragetotalled52,260villages.
Over11,423BCoutletshavebeensetupacrossurban/metrocentres,
whichcatertotherequirementsofmigrantlabourersandvendors,among
others.DuringFY201314,226lakhsremittancetransactionsforRs.9,983
croreswereregisteredthroughBCchannel.
DuringFY201314,theBankhasopened1.50croressmallaccountswith
simplifiedkYC,takingtheoveralltallyto3.53croresaccounts.
ThetransactionsvolumethroughtheBCChannelhasgrowntoRs.22,525
croresduringFY201314asagainstRs.13,033croresduringFY201213.
Tofacilitatetransactionsthroughalternatechannels,theBankhas
issued24lakhsFIRupayATMDebitCardstoFIcustomers.
linkingofvillagestobranchesthroughCSPsinahubandspokemodel
hasbeenlaunchedand69,749villageshavebeenlinkedsofar.A
facilityofdepositingloanrepaymentsat31,919BCoutletshasalso
beenenabled.
DirectBenefitTransfer(DBT)Schemehasbeensuccessfullyrolledout.
TheBankhassuccessfullycompleted27.41lakhstransactionsamounting
toRs.505croresasSponsoringBankinadditiontohandling7.1lakhs
transactionsamountingtoRs.98.61croresasReceivingBank.Overall1.36
croresaccountswerelinkedwithAadhaaracrossthecountry.
SBIisthesoleSponsoringBankforDBTforLPGtransactions,whichare
processedcentrallyforallthethreeOilMarketingCompanies;over
8.98crorestransactionsamountingRs.5,393croresweresuccessfully
processed.
Over4.46lakhsSHGsarecreditlinkedwithcreditdeploymentofRs.5,134
3/24
7/5/2015
crores.OurmarketshareinSHGsis22%.
AgriBusiness
TheBankretaineditsleadershipinAgriBusinessbycrossingRs.1,16,081
croresunderagrisegmentaladvancescoveringover1.13crores
customers.Atotalof5.13lakhsnewcustomerswerebroughtinthe
Bank''sfoldduringFY201314.
ShorttermproductioncreditconstitutingKCCandAgriGoldloan,
recorded14%YoYgrowth.
AverageagriloanticketsizeincreasedtoRs.1.03lakhsthrough
migrationofcroploanstorevisedKisanCreditCardschemeoperated
throughATMenabledStateBankKisanCards.
ThenumberofKisanCreditCardissuedbyBankcrossed61.60lakhs
duringFY20132014.
FlowofcredittoAgriculture
Asinthepast,theBankhassurpassedAgricreditflowtargetsetby
GOIduringFY201314.
exhibit4:FlowofcredittoAgriculturetrend
YeartargetDisbursement%
Achievement
FY20111251,00053,214104%
FY20121360,00063,936106%
FY20131473,50074,970102%
newproductsLaunched
Tomeettheemergingneedsofthefarmerintunewithmarketdynamics,
theBankhasrolledoutnewloanproducts''MultiPurposeAgriGold
loan''ahasslefreeandtailormadeproducttotapthepotentialin
AgriGoldloanbusinessforallinvestmentcreditneeds,suchasminor
irrigation,horticultureandfarmmachinery,amongothers.
SpecialCampaigns
Tocreateawarenessamongfarmersandtoimprovecoverage/penetration
oftheBank''sAgriproducts,specialcampaignswerelaunched.
KCCCampaign:TodrivegrowthinKCCloanportfoliothroughrenewaland
migrationofexistingKCCaccountsundertherevisedKCCscheme,a
businessofRs.6,841croreswasgarneredunderthecampaigninFY
201314.
SwarnadharaCampaign:TopromoteAgrigoldloansandMultiPurposeAgri
Goldloan,thecampaignwasrelaunchedquarterlyandmobiliseda
businessofRs.4,342croresduringFY201314.
TractorLoanCarnival:Topromote''NewTractorloanscheme'',whichwas
dovetailedtocaptureandregainthecompetitivetractormarketand
garneredabusinessofRs.274croresinFY201314.
Krishiplus:Totargettheexistinghighvalueagriborrowers(limitof
Rs.3lakhsandabove)withgoodtrackrecordforthesanctionofan
additionalloantocapturegrowthwithquality.Atotalof4,148
accounts,aggregatingtoRs.108.15crores,havebeensanctionedunderthe
campaign.
BondingwithFarmers
SBIKaapnaGoanScheme:DuringFY201314,121newvillageswere
adoptedunder''SBIkaApnaGoanScheme''foroveralldevelopment,taking
thetotalnumberofvillagesadoptedto1,393.
FarmersClub:Atotalof145newFarmerClubswereformedforfostering
continuedrelationshipwiththefarmingcommunitytakingthetotal
numberofFarmerClubsto10,670ason31stMarch,2014.
Growthenablers
HubandSpokeModelwithBCnetwork:TheBankhasestablishedlinkage
with67,489villagesthrough34,064ruralCSPsforscouting
applicationsfromcustomersresidinginremoteunbankedareasand
bringingthemintothebankingfold.
loanoriginationsoftware(LOS):loanOriginationSoftwareapplications
supporttrackingandrecordingallprocessesfromsourcingtosanction,
documentation,controlandsubsequentaccountopeninginCBS,resulting
inavoidanceofrepetitivework.
PersonalBankingBusinessUnit(PBBU)
DomesticBusiness
DomesticDepositshavegrownbyRs.1,17,100crores(16.87%)andAdvances
byRs.6,702crores(7.43%)ason31stMarch,2014.CASADeposithasgrown
by15.51%andCASARatioason31.03.2014is46.95%.Duringtheyear,
wehavetakenthefollowingstepstostrengthenourSavingsBank
productandtomakeitmorecompetitive:
OnlineAccountopeningfacilityhasbeenpopularised.
PersonalAccidentInsurancewasenhancedbyaddingtwonewinsurance
coverslabsofRs.10lakhsandRs.20lakhs.
4/24
7/5/2015
MedicalInsurancewasintroducedforSavingsBankAccountholders.
NumberoffreemulticastchequeswaslinkedtotheAverageQuarterly
Balance(AQB).
Theabovementionedinitiativesstrengthenedcustomeracquisition.
OtherHighlights
ThenumberofPremierBankingcustomershasincreasedfrom2,78,509to
3,57,679customersduringFY201314.Thereis27%growthindeposits
inthissegment.
Duringtheyear,fourexclusiveHNIbranchesand45newPBBswere
opened.
NRIServices
DuringFY201314,NRIDepositshavegrownbyRs.32,518crores(42%)and
reachedalevelofRs.109,958croresason31.03.2014.AdvancestoNRIs
recordedagrowthofRs.538crores(24%)duringtheFY201314,thelevel
reachedbeingRs.2,751croresason31.03.2014.Wehadalsolaunchedthe
specialFCNBschemetomobiliseforeigncurrencydepositsunderthe
RBI''sspecialSWAPwindowfrom04.10.2013to25.11.2013andgarneredan
amountofUSD3089million.
TheBankhasbeentomakethemostofouravailableservicesand
productsthroughonlinechannels.Therefore,werecentlylaunchedthe
OnlineAccountOpeningfacilityforNRIcustomers.
SBIwasthePrincipalSponsorofPravasiBharatiyaDivas,anannual
flagshipeventforNRIDiasporafromallovertheworld,organisedby
theMinistryofOverseasIndianAffairs,whichwasheldatVigyan
Bhavan,NewDelhifrom7th9thJanuary,2014.
TostrengthenourpreeminentpositionintheareaofNRIServices,we
haveopenedfivenewNRIbranchesinIndiaduringthecurrentfinancial
year,takingthenumberoftotalNRIbranchesto74.Thesededicated
brancheshaveanexcellentambience,alongwithawellskilledteamof
officialstoserveNRIcustomers.Apartfromthesebranches,thereare
alsoabout100NRIintensivebranchesacrossallCirclesservicing
substantialvolumesofNRIbusiness.
CorporateandInstitutionalTieUps
TheBanknowhascustomisedSpecialSalaryPackagesforemployeesof
Corporate,Defense,ParaMilitary,Railways,CentralGovernment,State
GovernmentsaswellasPolice,whichenableafocusedmarketing
approach.
RelatedAssetsandliabilitiesbusinessgarneredfromthisnichegroup
isRs.36,970croresinTimeDepositsandRs.29,999croresinretailloans
comprisingHomeloans(Rs.14,913crores),Autoloans(Rs.3,135crores),
XpressCreditloans(Rs.11,951crores).Fourhundredandsixtysixnew
tieupswereenteredundertheCorporateSalaryPackageduringFY
201314.
exhibit6:corporate&institutionaltieUps
particulars31.03.201331.03.2014Growthin
FY201314
Absolute%
DefenceSalary22,27,93023,79,9251,51,9956.82
Packageand
ParaMilitary
SalaryPackage
accounts
OtherSalary48,51,16851,85,0983,33,9306.88
Package
Accounts
TotalNoof70,79,09875,65,0234,85,9256.86
SalaryPackage
Accounts
CASA21,26224,7353,47316.33
(Rs.inCrores)
Autoloans
TheAutoloanportfoliohasgrownby12.60%duringFY201314,despite
negativegrowthinthepassengercarmarket.TheBankiscurrently
offeringcarfinanceon''OnRoadPrice''ofthecar,withlongest
repaymentperiodof7years,noprepaymentpenalty,noadvanceEMIand
atcompetitiveinterestrates.AnewonlineCarloanapplicationsystem
waslaunchedandrolledoutpanIndiatosourceCarloansonline.
Educationloans
SBIEducationloanshasgrownat7.19%YoY(duringFY201314).SBIhas
atotalexposureofRs.14,740croresasonMarch2014.SBIisthemarket
leaderinEducationloanswithamarketshareofaround24.9%among
ASCBasonFebruary2014.
SBIStudentplusadvantageCreditCard,designedspecificallyfor
educationLoanBorrowers,waslaunchedincollaborationwithSBICards
Ltd.toprovidethemwithanadditionalmeansoffinancingtheir
expenditurewheneverneeded.
Personalloans
ThePersonalloansPortfolio,whichisthesecondlargestinthe
5/24
7/5/2015
PersonalBankingSegmentwithanoutstandingofRs.48,432croresason
31.03.2014,includesPersonalloans,loanagainstSecurities,loan
againstPropertiesandGoldloan.IthasgrownbyRs.2,244croresduring
FY201314.loanagainstTimeDeposits,whichisoneofthemajor
productsinPersonalloansPortfolio,grewbyRs.1,162crores.
Realestate,Habitat&HousingDevelopment(REH&HD)
DuringFY201314,theBankhasrecordedanalltimehighgrowthof
Rs.20,849croresinhomeloansandmaintaineditspositionasthe
country''slargesthomeloanprovider.ThemarketshareamongstAll
ScheduledCommercialBanks(ASCB)inhomeloanshasimprovedby8bps
from25.94%(ason31.03.2013)to26.02%(ason31.03.2014).
exhibit7:performanceinHomeloans(Rs.incrores)
particularsFY201112FY201213FY201314
levels1,02,7391,19,8891,40,738
YTDGrowth12,82616,72820,849
YTDGrowth(%)14.26%16.30%17.38%
DuringFY201314,theBanktookseveralinitiativestoprovidean
additionalthrusttoitsHomeloanportfolio.Someoftheimportant
initiativesinthisregardcomprisethefollowing:
Anewproductnamed''SBIHERGHAR''offeringaconcessionof5bpson
theprevailingHomeLoaninterestrateswasintroducedforwomen
borrowersinDecember,2013.TheSchemehasbeenwellacceptedinthe
marketandnowaccountsfor24%oftheincrementalsanctionofhome
loans.
Selectbranchesatmajorcentreshavebeenauthorisedforexecutionof
homeloandocumentstoenhancethelevelofcustomerconvenienceand
satisfaction.
Themaximumpermissiblemoratoriumperiodunderadifferentscenario
hasbeenrevisedandahighermoratoriumperiodofupto48monthshas
beenpermittedforintegratedtownshipandMegaprojects.
Innovationandnewproducts:Wehavedevelopedriskmitigatedproducts
forSMEs,suchasSBIAssetBackedloan,SBIFleetFinanceSchemeand
POSlinkedCurrentAccountwithOverdraftScheme,whicharelaunchedin
FY201314.WeareincorporatingsectorspecificScoringModelsinthe
newproductsandschemestoscreentheborrowersataninitialstageto
facilitatefasterprocessing.
RelationshipBanking:Underasinglewindowapproach,theBankis
offeringRelationshipBankingtoSMEEntrepreneurs.Thestrengthof
RelationshipManagers(MediumEnterprises)wasaugmentedto597ason
31.03.2014andmappedtoMEunitswithcreditlimitsofRs.1.00crores
andaboveacrossthecountry.TheadvancesportfoliounderRelationship
bankingason31.03.2014isRs.1,37,180crores.
SpecialisedSMEBranches:ToprovidespecialisedservicestoSME
Entrepreneurs,579brancheswithapredominantportfolioofSME
advancesarebrandedas''SMEBranches''.
Theobjectiveistoidentifythesebrancheswithacommonnomenclature
anddevelopthemascentresofexcellenceforSMEloandelivery.
creditFlowtoMicroandsmallenterprises(CGTMSE):
TheBankisextendingcollateralfreelendinguptoRs.1crorestoMSE
sectorunderguaranteeofCGTMSE.
Exhibit9:performanceinCGTMSE(Rs.incrores)
particularsAsonAsonGrowth
31.03.201331.03.2014(%increase)
Outstandings
(%tototal7,2639,7402,477
SMEadvances)(34.10%)
Noofcustomers1.712.090.38
(inlakhs)(22.22%)
LoanoriginationSoftware(LOS)forSME:TheLOSforSMEBusinessUnit
hasbeenconceivedtocapturethepresanctionprocessofadvance
portfolio,therebyensuringqualityanduniformstandardsofcredit
dispensationandfinallyensuringarobustrecordandinformation
retrievalsystem.TheLOSsystemhelpsinhandlingalargevolumeof
applications,eliminatesrepetitiveworkandimprovestherecordand
retrievalsystem.
Ason31.01.2014oneoftheschemesoftheSMEBUi.e.''SMESmart
ScoreforloansuptoRs.25lakhs''underLOSwassoftlaunchedacrossall
CirclesbytheGITC,Belapur.
SupplyChainFinance
Leveragingitsstateofthearttechnology,SBIisfocusingonfurther
strengtheningitsrelationshipwiththeCorporateWorldbyfinancing
theirSupplyChainpartners.
TheBankhastiedupwith70industrymajorsacrossallindustry
verticals,suchasAuto,Oil,Steel,Power,Fertilizer,FMCGand
TextileundereDFS.
Exhibit10:performanceinelectronic
6/24
7/5/2015
DealerFinancescheme(Rs.incrores)
31.03.201331.03.2014(%increase)
limits6,5329,4872,955(45.24%)
Sanctioned
Outstandings4,7857,5332,748(57.42%)
Exhibit11:performanceinelectronic
VendorFinancescheme(Rs.incrores)
31.03.201331.03.2014(%increase)
limits2,9603,865905(30.57%)
Sanctioned
Outstandings1,1641,742578(49.66%)
SMEInstaDepositCards:Thereare1,516CDMsinstalledatVarious
locationsacrossthecountry,ason31stMarch,2014.TheBankhas
issued2,16,847SMEInstaDepositCardsand1,33,576BusinessDebit
CardstoSMEcustomers.
CashpickupFacility:Thecashpickupfacilityofcollectingcashat
customers''doorstepswasintroducedforSMEcustomersinAugust2011.
Thegrowthinusageofthisfacilityhasbeenasunder:
Exhibit12:performancein
CashPickupFacility(Rs.incrores)
31.03.201331.03.2014(%increase)
No.of486656170(35%)
customers
availingthe
facility
Amountofcash2,246.754,860.552,613.80
pickup(116%)
SMEpowerCurrentaccount:Ason31.03.2014,thenumberofPower
Accountsstandsat28,215,constitutingadepositbaseofRs.3,032.44
crores,asagainstRs.2,741croresin26,160accountsason31.03.2013.
UnfixedDeposits:ThepopularityofUnfixedDeposits,launchedduring
November2011,receivedgoodresponsefromalargesectionofSMEand
CorporateClientbase.Thedepositundertheschemegrewtoalevelof
Rs.42,159croresason31.03.2014.
GovernmentBusiness
TheBankhandlesgovernmenttransactions(receipts,payments,pensions,
amongothers)asanagentoftheRBIonbehalfoftheGovernmentand
Variousstategovernmentsthroughitsauthorisedbranches.DuringFY
201314,theBankwasabletoretainitspositionasthemarketleader
inthisbusinesssegment,withamarketshareofaround58%intermsof
handlinggovernmentpaymentsandreceipts.
TheBankearnedcommissionfromGovernmenttransactionsofRs.16.59
billionandRs.17.80billionduringFY201314andFY201213,
respectively.
ThedeclineingovernmentcommissionduringFY201314by6.70%overFY
201213,despiteagrowthof10.92%inGovernmentturnoverisdueto:
MigrationofGovernmentReceiptsonemode(whichearnRs.12/per
transactionasagainstRs.50/forphysicaltransaction).
HigherratesofcommissionwereapplicableduringQ1FY201213.
TheBankisfacilitatingtheGovernmentofIndia''segovernance
initiativesbylaunchingmultipleeproducts,suchaseAuction,
eFreight,RailShakti,FeecollectionforPassportandVarious
examinations,ImprestCards,CentralPlanSchemeMonitoringSystem,
SAAKSHARBharat,amongothers.Manyothereproductsareexpectedto
belaunchedduringFY201415.
MarketingandCrossSelling
SBIisCorporateDistributorofSBIlife,SBICards,SBICapSecurities
ltd.andSBIMF,alongwithfourothermajorAMCtieuppartners,such
asUTIMF,TataMF,FranklinTempletonMF&l&TMF,throughour
branches.
TheBank''scrosssellingincomehasincreasedtoRs.282croresason
31.03.2014fromwithYTDgrowthof14%,ascomparedtoRs.274croresas
on31.03.2013.SBIlifeinsurancepolicyhascovered51%ofthe
Bank''shomeloanborrowersand50%ofeducationloanborrowersduring
FY201314.AnewHealthPersonalAccidentInsuranceproduct,
launchedbyStateBankGeneralInsurance,sold1.44croresPoliciesand
SBIGeneralhasissued44,000healthinsurancepoliciesduringthe
year.StateBankCard&PaymentServicesPrivateltd.hasissueda
totalof25,000creditcardsandwehaveopened1,20,000Dematand
TradingaccountsthroughoursubsidiarySBICAPSecurityltd.duringFY
201314.
B)corporateAccountsGroup(CAG)
7/24
7/5/2015
CAGisthededicatedSBUforhandlingthe''largecredit''portfolioof
theBank.TheSBUhas7Officesin6regionalcentersviz.Mumbai,
Delhi,Chennai,kolkata,HyderabadandAhmedabadheadedbyGeneral
Managers.ThebusinessmodelofCAGiscenteredaroundtheRelationship
ManagementconceptandeachclientismappedtoaRelationshipManager
whospearheadsacrossfunctionalClientServiceTeam.TheRelationship
strategyisanchoredondeliveringintegratedandcomprehensive
solutionstotheclients,includingstructuredproducts,withina
strictTurnAroundTime.Theprincipalobjectiveofthestrategyisto
makeSBIthefirstchoiceofthetopcorporatetherebyincreasingthe
walletshareandimprovingtheReturnonCapitalEmployed.Asustained
AccountPlanningexercisewithrigorousreviewoftheaccountbysenior
managementsetsthepacefortheRelationshipManagementinCAG.
exhibit13:BusinessperformanceofCAG(Rs.incrores)
FacilityFY201213FY201314Growth(YoY)
FundBased175,831242,71838%
(O/s)
NonFund409,477466,59814%
Based(Vol)
WhiletheFundBasedoutstandingsofCAGconstitutes20%oftotal
creditportfoliooftheBank,CAGalsohandlesabout61%ofthe
domesticforexbusinessoftheBank.Duringtheyear,CAGhandled
severalhighvaluedealseg.PowerGridCorporation,DVC,TataSteel,
HindalcoIndustries,etc.
Inadditiontorupeeloans,manyclientsofCAGborrowsignificantlyin
foreigncurrency.Duringtheyear,substantialbusinesswasgenerated
notonlyfromOilPSUs,butalsofromclientsintheprivatesector.
Around44%ofCAG''sexposureistoInfrastructuresectorofwhich85%
istocorporatewithratingsofInvestmentGradeandabove,andthe
riskprofileofsectoralmovementiswellbalanced.
InthebackdropoftherobustgrowthofCAGMumbai,asecondOfficein
BkC,MumbaiwasopenedduringSeptember13,anditisproposedtoopen
anotherofficeinDelhishortlysoastoensurethatthehighstandards
ofassetqualityandservicedeliveryaremaintained.
TransactionBankingUnit(tBU)
TBU,withspecialfocusonCashManagementProducts,TradeFinanceand
SupplyChain(Dealer/Vendor)Finance,whichstartedworkingin
fullfudgedmannerduringtheyear200910,hasexpandeditsactivity
duringthelastfouryears.
cashManagementproduct(CMP):TheBankprovidesCashManagement
ServicesSBIF.A.S.T.(FundsAvailableinShortestTime)to
Corporatecustomersthrough1450branchesat757centresspreadover
thecountrybymeansofatechnologydrivenplatform.TheBank''sentire
networkofover15,500branchesisalsoofferedtolargeCorporate,
NonBankingFinanceCompaniesandInsuranceCompaniesfortheirCash
Managementneedsthroughcertain''PremiumProducts''suchasPowerjyoti
Preupload.ThewholespectrumofCashManagementservices
encompassingliquidityManagement,ChequeandCashcollections,
DoorstepBankingforCashandChequepickup,collectionsforPublic
Issues(IPO/Bonds),eCollections,PostdatedChequesmanagement,
MandatebaseddebitsandPaymentservicescomprisingDividendWarrants,
MultiCityCheques,InterOfficeInstrumentsandepaymentareoffered.
CMPCentreistheSoleRefundBankerforCentralBoardforDirect
Taxes(CBDT).CMPCentrehasbroughtaboutintegrationofpayment
SystemsofControllerGeneralofDefenceAccounts,CivilMinistries
underUMEAandsomeStateGovernmentswiththeCoreBanking
InfrastructureoftheBankbyprovidingCentralizedePaymentSolution
enablingtheGovernmentDepartmentstoachievetheirobjectivesunder
NationaleGovernanceProject(NEGP).
TradeFinance:Ason31.03.2014,lC/BGbusinessandincomeunderCAG
recordedaYoYgrowthof14%and30%respectivelydespitethegeneral
economicslowdown,aresultdeliveredonthebackofthesuperior
servicesprovided.
eTradeSBI
SBIhasestablishedanexcellenttechnologyandoperation
infrastructureforitsTradeFinancebusiness.eTradeSBI,awebbased
portal,whichwaslaunchedbyourBankinMarch2011,hasbeen
undergoingconstantimprovementtoenhancecustomercomfortandprovide
themeanstocustomerstoaccesstradefinanceserviceswithspeedand
efficiencybyenablingthemtolodgelettersofCredit,BankGuarantees
andBillsCollection/negotiationrequirementsonlinefromanycornerof
theworld.Ason31.03.2014,1748Corporateareregisteredunder
eTradeSBIandmorethan15000transactionspermontharetakingplace
througheTradeplatform.
eVFS(ElectronicVendorFinancingScheme)&eDFSD(ElectronicDealer
FinancingScheme)
LeveragingourBank''sstateofthearttechnology,ourrelationship
withtheCorporateWorldhasbeenfurtherstrengthenedbyfinancing
theirSupplyChainPartnersthroughtheabovetwoproductswhichare
fullyautomated,securedandrobust.Theyaredesignedtoensure
efficientmanagementofworkingcapitalcycle,sustainedgrowthand
profitabilityofbusinesspartners.Ason31.03.2014,95industry
Majors(IMs)withmorethan900vendorsand3,000dealersacrossthe
countryhavebeenmigratedtotheelectronicfacilityunderthe
eVFS/eDFSplatform
FinancialinstitutionsBusinessUnit(FIBU):FIBU,adedicatedvertical
8/24
7/5/2015
createdforcapturingpotentialbusinessopportunitiesfromfinancial
institutionsviz.Banks,MutualFunds,InsuranceCos.,Brokerageforms
andNBFCs.
CapitalMarketBranch(CMB),MumbaiunderFIBU,aspecialisedbranch
cateringtoCapitalMarketbusinessandBrokerswasgiventheawardof
beingoneofthe''TopPerformersinBSEinPrimaryMarketsegment''by
BombayStockExchangeforthethirdconsecutiveyear.CMBhasalso
actedas''BankerstoIssue/RefundBanker''andmobilizedoverRs.18,000
croresinFY2014.
projectFinance&leasingSBU(PFSBU)
Exhibit14:Businessperformance(Rs.incrores)
201213201314
ProjectCost1,66,2991,23,601
ProjectDebt88,03384,667
SanctionedAmt.24,11916,408
SyndicationAmt33,45413,438
PFSBUdealswiththeapprovalandarrangementoffundsforlarge
projectsininfrastructuresectorslikepower,telecom,roads,ports,
airports,asalsoothernoninfrastructureprojectsinsectorslike
metals,cements,oil&gas,amongothers,withcertainthresholdon
minimumprojectcost.PFSBUalsoprovidessupporttootherverticals
forvettingtheirlargetickettermloanproposals.Inorderto
strengthenthepolicy/regulatoryframeworkforfinancing
infrastructure,inputsarealsoprovidedtoVariousministriesofGovt.
ofIndia,PlanningCommission,RBIetc.inrespectoflenders''viewson
newpolicies,ModelConcessionAgreements,issuesbeingfacedin
infrastructurefinancing,etc.
BusinessperformanceofPFSBU:Ason31.03.2014,theportfolioof
infrastructureprojectsunderimplementationandcontrolwithPFSBU
involvesPowerprojectswithaggregatecapacityof49,335MW;Telecom
Projectsserving250millionsubscribers;Roadprojectscovering5,565
kms;newPortstohandle45MTPAmultipurposecargoand1.2million
TeUofcontainercapacity;MetroProjectinHyderabadbesidesahostof
projectsinsteel,cement,UrbanInfra,etc.Duringtheyear,atotal
(FBNFB)ofRs.9,691crores(Rs.12,884croresinFY13)weredisbursedto
theseprojects.
Fromtheperspectiveofenvironmentsustainability,theBankhasalso
beenlayingemphasisontherenewablesectorinpowergenerationand
loansaggregatingRs.1,253Crores(FBlimit)havebeensanctionedto10
projectsinwind/solarsectorswithtotalcapacityof624MW.
exhibit15:significantdealsduringFY201314
projectsDetails
Aircellimited(IncludingToprovidetelephonyservices
AircelCellularltd,Dishnetin2G,3GandBroadband
Wirelessltd.andAircelservicesacrosscountry.
SmartMoneyltd.)
PetronetlNGltdPhaseIIIExpansionof5MMTPAfrom
Dahej(PromotedbyONGC,existing10MMTPAfacilities.
BPCl,GAIlandIOCl)
JSWSteelltdExpansionof1.5MTPA
integratedsteelplantfrom
existing3MTPAISPatDolvi,
Maharashtra.
TataTeleservicesToprovidetelephonyservices
in2G,3Ganddataservices
onbothGSMandCDMA
technologyacrosscountry.
OrientCementsGreenfeld3MTPAcement
project(PromoterCK
Birlagroup)atGulbarga,
Karnataka
c)MidcorporateGroup
TheBank''sMidCorporateGroup(MCG)operatesthroughits14regional
officesacrossAhmedabad,Bangalore,Chandigarh,Chennai(2),Hyderabad,
Indore,kolkata(2),Mumbai(2),NewDelhi(2)andPune,andhas62
branchesason31stMarch,2014.
MCGcustomersinEasternIndianowhaveeasieraccesstosenior
officials.Thishasalsoresultedinimprovedcreditdelivery,witha
greaterthrustonattractinggoodqualitynewbusiness.
TwonewMCGbrancheswereopenedduringFY201314atludhiana(the
secondbranchofthecity)andVijayawada,inordertofullytapthe
businesspotentialatthesecentres.ThisincreasesthenumberofMid
Corporatebranchesfrom60to62.
TheGroupcontinuestoassistourcustomersinIndiatoexpandtheir
activitiesandprovidesthemsupportforacquiringassets/companies
overseas,includingbywayofloanstooverseassubsidiaries/JVs
(backedbylettersofComfortorStandbylettersofCredit).Overthe
years,theGrouphashelpedmanysuchacquisitionsbyIndiancompanies
inUSA,Europe,AustraliaandAfrica,amongothers.
D)InternationalBankingGroup
9/24
7/5/2015
TheBank''sinternationalbankingnetworkspansacross190officesin36
countries.
exhibit17:Businessperformance
ofForeignoffices(InUSDMillion)
31.03.201331.03.2014YoYYoY
Growthincrease
in(%)
NetAssets42,146.1045,192.983,046.877.23
NetCustomer31,148.5435,772.574,624.0414.85
Credit
Deposits13,374.4114,758.331,383.9310.35
Operatingprofit660.35676.4116.052.43
Overseasexpansion
Thenumberofforeignofficesincreasedfrom186ason31stMarch,2013
to190ason31stMarch,2014spreadacross36countries.Theoffices
include52branches,8RepresentativeOffices,110officesofthe7
foreignbankingsubsidiariesand20otheroffices.DuringFY201314,we
haveforayedintotwonewcountriesinBotswanabyestablishinga
subsidiaryandinSouthkoreabyopeningarepresentativeoffice.
exhibit18:Breakupofforeignoffices(No.)
FYNewofficesFY
201213openedduring201314
theyear
Branches/SalesOffice/68168
OtherOffices*(1closed)*
Subsidiaries(6)(1)(7)
(Figuresincludedinoffices)
Offices1073110
RepresentativeOffices718
Associates/Managed404
exchangeCos/Investments
total1864190
*MaamigilisubofficeinMaldiveswasupgradedtoaBranchandJackson
HeightsbranchintheUSAwasclosed.
TreasuryManagement
TheBank''sforeignofficesmaintainedcomfortableliquidityposition
duringthefiscal,despitevolatilemarketconditions.InApril2013,we
successfullypricedaUSD1billionBondissue,whichisa
144A/RegulationSofferingandwillmatureinApril2018.
InSeptember2013,SBIundertookaBondBuyBackprogrammeunderwhich
BankboughtbackUSD147millionworthofApril2018bonds.
OurforeignofficesintroducedaleverageproductforNRIsinNovember
2013toincreaseForeignCurrencyNonResidentBank(FCNRB)deposits
undertheSpecialSwapwindowschemeofRBI.AnamountofUSD2.518
billionwasdisbursedtoNRIsatForeignOfficesunderthisscheme.
Remittance
InwardremittancesgrewfromRs.69,812croresinFY201213toRs.86,817
croresinFY201314(24%).Tieupswith30exchangecompaniesandsix
banksintheMiddleEastCountriesforroutingremittancesthroughour
Bankhavesubstantiallycontributedtoincreasedinwardremittances.
DomesticOperations
MerchantBanking
TheBankretaineditspremierpositionasMandatedleadArrangerand
BookRunnerforsyndicatedloansinAsiaPacific(exJapan)forthe
eighthconsecutivecalendaryearendingDecember2013andsustainedits
leadpositioninJanuaryMarch2014periodtoo.
During201314,weactedastheMandatedleadArrangerin18deals
aggregatingUSD11.926billionforseveralleadingIndiancorporates
likeTataSteelCanadaCapitalltd.,LOCL,HPCL,OIL,ONGCVidesh,REC,
ONGCMangalorePetrochemicalltd.,RelianceIndustries,HDFCltd.,IDFC
ltd.andYesBank.
exhibit19:syndicatedloanDeals
No.ofDealsAmount
(inUSDbn)
FY201213176.292
FY2013141811.926
Apartfromthis,weextended23foreigncurrencyfacilitiesaggregating
USD4.611billiontoIndiancorporateonabilateralbasis.Wealso
acquired5loansamountingtoUSD120.00millionthroughthesecondary
market.
data:text/htmlcharset=utf8,%3Ctable%20cellspacing%3D%220%22%20cellpadding%3D%220%22%20border%3D%220%22%20width%3D%22740%22%20class%3D%22PT10%22%20style%3D%22padding
10/24
7/5/2015
TheBankearnedafeeincomeofUSD79.70millionfromforeigncurrency
termloansconcludedduringFY201314throughsyndication/bilateral
deals.
GloballinkServices(GLS)
GloballinkServices(GLS),aspecialisedoutfit,caterstocentralised
processingofExportBillscollection,Chequecollectionandonline
inwardremittancetransactions.
DuringFY201314,GLS(onbehalfofdomesticbranches)handled75,177
exportbillsand58,248foreigncurrencychequecollectionsaggregating
USD13.20billion.Inaddition,ithandled78,49,396onlineinward
remittancetransactionsamountingtoUSD6.10billionreceived
globally.
DuringFY201314,theBanklaunchedanewonlineinstantremittance
product''SrilankatoIndiaSBIFlash''forremittancesfromSrilanka
toIndia.GLShasalsodevelopedaplatformforcrossborder
remittancesfromGulftoBangladesh/Nepal/Srilanka.
Correspondentrelations
TheBankmaintainscorrespondentbankingarrangementwith385reputed
InternationalBanksacross113countriesinordertoextendseamless
servicestoVariedclients.Alongwiththecorrespondentbanks,we
alsohavemorethan1,725RelationshipManagementApplication(RMA)
arrangementswithSocietyforWorldwideInterbankFinancial
Telecommunication(SWIFT),facilitatingspeedierflowoffinancial
messages.
e)GlobalMarketsoperations
GlobalMarketsGroupperformsthetreasuryfunctionsoftheBank,
ensuringsafety,liquidityandyield,besidesmaintainingstatutory
reserverequirements.ThecorpusundermanagementofGlobalMarkets
increasedbyaround20%YoYtoRs.4,70,000crores.Further,Global
MarketsGroupprovidesforeignexchangeservicesandhedging
instrumentsforriskmanagementtocustomers.Italsooffersportfolio
managementservicestomanyretirementfunds.
TheFY201314startedonapositivenotewithRBIcuttingtherepo
rateby25bpsto7.25%inMay2013.The10yearbenchmarkyieldfell
from8.01%inApril2013to7.09%inMay2013.However,conditions
deterioratedforIndianfinancialmarketsafterFederalReserve''s
announcementofitsintentiontotaperQEpurchaseswhichledtoa
sharpdepreciationoftherupee.
TheReserveBankofIndia(RBI)announcedunprecedentedmeasureslike
cappingRepoborrowingto0.5%ofNDTLandincreasingMSFrateby200
bpsto10.25%whichledtoasuddensurgeinbondyieldsto9.48%.
ConditionsimprovedfromOctober2013onwardswithRBIgradually
reversingmanyofthetighteningmeasuresandinjectingliquidityinto
thefinancialsystemthroughtermrepos.AsRBIremainedfocusedon
inflationcontrol,benchmarkyieldsclosedtheyearatelevatedlevels.
DuringFY201314,theBankmaderecordprofitofRs.1,846croresfrom
saleofinvestmentsasagainstRs.180croresinFY201213.Moreover,in
theareaofcashmanagement,wehaveconsistentlyoutperformedpeer
banksinCRRmaintenancebyabout270basispoints,resultingin
interestcostsavingsofoverRs.100crores.
EquitymarketswitnessedarallyfromSeptemberonimprovementin
macroeconomicparameterslikestableexchangerateandcurrentaccount
deficitbuoyingFIIinflows.DuringFY201314,theBank''sactiveequity
portfolio(excludingNonPerformingInvestments)yieldedacashflow
returnof22.73%againstaNiftyreturnof17.12%.Ifwereckonthe
dividendincome,thereturnimprovesfurtherto25.56%.Duringthe
year,theBankparticipatedinselectEquityMFs,IPOs,OffersforSale
andFPOs.
TheBankcontinuedtoexploreopportunitiesintheareaofprivate
equityandventurecapitalfundinvestments.DuringFY201314,
investmentsofRs.345croresweremadeindifferentventurecapitaland
privateequityfunds.
GlobalMarketsprovidesforeignexchangesolutionstothecustomersin
allcurrenciesformanagingtheircurrencyflowsandhedgingrisks
throughoptions,swaps,forwardsandbullionservices.Aspartofits
continuousendeavourtoprovideenhancedservicestoitscustomers,the
Bankhasalsointroduceddigitalsignaturesforitscorporate
customers.TheBankalsoleveragesaworldclasstechnologyplatformto
seamlesslyprocesscurrencyflowsbetweenitscustomersthroughbranches
andthedealingroom.
Thetreasurymarketingoutfitscomplementthisbyengagingwith
customerstoprovidethemwithinputsaboutmarketsandsuggesting
productstosuittheirrequirements.TheBankearnedanincomeofover
Rs.1,470crores(fromdomesticoperations)bycoveringthecustomerflows
inforeignexchange,hedging,gold,andproprietarytrading.
GlobalMarketsalsomanagesFCNR(B)corpusoftheBankandprovides
fundsforExportFinanceinForeignCurrencyandFCNR(B)loansin
foreigncurrenciesforthecustomersinIndia.
TheBankprovidesportfoliomanagementservicestoanarrayof
retirementfundsinthecountryconsistentlygivingsuperlative
returns.ThePortfolioManagementServicessection,withanAUMofover
Rs.2,79,000croreshasconsistentlyoutperformedprivatesectorpeersin
generatingreturnsfortheEmployeesProvidentFundOrganisation(EPFO)
funds.Forthelastthreeyears,yourBankhasbeenconsistently
adjudgedasthebestfundmanagerforEPFO.
11/24
7/5/2015
TheBankwasrankedthe''BestLocalFXBankinIndia''inAsiamoney''s
25thanniversarypollofpollsforitsconsistentlystellar
performancesinAsiamoney''sannualpolls.
I.2NewBusinesses
Adedicateddepartmentdevelopsandlaunchesinitiativesinemerging
businessareas,includingtechbasedproducts.Somekeyinitiatives
are:
DebitCard
StateBankGroup(SBG)continuestoleadDebitCardissuanceinthe
countrywithover150millionDebitCardsason31stMarch,2014and
over40%marketshare.
SpendingbydebitcardholdersoftheSBGacross''PointofSale''and
''eCommerce''transactionscrossedRs.22,407croresinFY201314.Wehave
introducedsomesignificantofferslikethe''3SwipeCampaign''during
AugustSeptember,2013and''ShopBigandGainBig''campaignin
collaborationwithSBICard(subsidiary),inOctoberNovember,2013.
PrepaidCard
TheBank''sproductrangeincludesthefollowingPrepaidCardstocater
toVariouspaymentneedsofitscustomers:
ForeignTravelCard:TheForeignTravelCard,nowachipbasedEMV
compliantCard,isavailablein8currencies,USDollar(USD),Great
BritainPound(GBP),Euro,CanadianDollar(CAD),AustralianDollar
(AUD),JapaneseYen(JPY),SaudiRiyal(SAR)andSingaporeDollar
(SGD),providingsafety,securityandconveniencetooverseas
travellers.WehavealsointroducedcorporateVariantsofStateBank
ForeignTravelCard(SBFTC)tocatertotheneedsofcorporate
employeestravellingoverseas.SalesstoodatUSD83.34millioninFY
201314.
eZpayCard:TheeZPayCardsarealignedwithmostofthesocial
schemesoftheStateandCentralGovernmentsinadditiontosalary
paymentsbycorporateentities,thusbenefitingmillionsofhouseholds.
SalesstoodatRs.829.19croresinFY201314.
GiftCard:GiftCardsareapreferredoptionforconsumerstogiftthe
''FreedomofChoice''totheirlovedones.CustomerscanpurchaseGift
Cardsonline.SalesstoodatRs.128.73croresinFY201314.
StateBankachieverCard:RolledoutinNovember2013.Thisisa
reloadableCorporateincentiveCardwithavalidityof10yearsfor
disbursementofincentives/awards.
SmartpayoutCard:WelaunchedtheSmartPayoutCard,areloadable
Card,on27thApril,2013,forbluecollarworkersandcontract
labourers,amongothers.ThisCardcanalsobeissuedasan''Addon
Card''tooursavingsBankaccountholders.SalesstoodatRs.15.19crores
inFY201314.
MerchantAcquiringBusiness(MAB)
TheMABdivisionaimstoactivatemorethan150millionSBGDebitCards
onPOSterminals,increasevisibilityandcreateacomprehensive
electronicinfrastructureinthecountry.Wearealreadythelargest
playeramongPublicSectorBankswitharound1,35,853terminals(ason
31stMarch,2014)inthemarket.Wearealsothe4thlargestAcquirer
inIndiaandhaveenteredintocorporatetieupswithmanyprominent
players,includingtopeducationalinstitutionsandhospitalsaswe
continuetotapthehugepotentialavailableinthemarket.Duringthe
yeartheBankhasalsolaunchedMobilePOSonapilotbasisandwillbe
rollingitoutonapanIndiabasisinthenextfewmonths.
MobileBankingService
TheBankisthemarketleaderwithamarketshareof57%intransaction
volumeand17%shareintermsofvalue.
During201314,financialtransactionsworthRs.3,763croreswere
executedthroughtheMobileBankingService,resultinginanincomeof
Rs.6.43crores.
GreenChannelCounter(GCC)
TheBankhaslaunchedtheGCCfacilityinallretailbranches(14,981
branches)toenhanceconveniencetothecustomersandsaveoncostand
timepertransaction.Morethan360,000transactionsaretakingplace
onadailybasisthroughthesecounters.
SelfServicekiosk(SSK)
TheBankhas1,352SSKsason31stMarch,2014enablingmorethan
55,000transactionsdaily.
GreenRemitCard(GRC)
TheBankintroducedGRC,aremittancecard,on2ndJanuary,2012for
facilitatinglargenumberofnonhomecashdeposittransactionsatour
branches.AcardholdercanswipethecardatGCCoratCashDeposit
Machines(CDM)andremitmoneytothebeneficiarywhoseaccountnumber
ismappedtothecard.Oncethetransactioniscompleted,boththe
remitterandbeneficiarygetaconfirmationthroughSMS.TheBankhas
issuedmorethan48,00,000cardsresultinginto1,81,00,000
transactionsason31stMarch,2014.
StateBankAggregatorService(SBIePay)
TheBankhaslaunched''SBIePay'',apaymentaggregatorservice,which
12/24
7/5/2015
facilitateseCommerce/mCommercetransactionsamongmerchants,
customersandVariousfinancialinstitutionsforallkindsofeCommerce
payments.TheBank''sChairman,SmtArundhatiBhattacharya,launched
theserviceatCorporateCentre,Mumbaion13thMarch,2014.Thenew
servicewillgoalongwayinprovidingourcustomerswithonline
paymentfacilities.
i.3NPAManagement
AdepressedmacroeconomicenvironmentinFY201314ledtoincreased
loandefaultswithdeteriorationinassetqualityofIndianbanks.
Slippageshaveoccurredacrossallsectorsandtoday,resolutionof
NPAsisthesinglelargestchallengebeforeallbanks.
StressedAssetsManagementGroup(SAMG)isadedicatedandspecialized
vertical,headedbyaDeputyManagingDirector,createdspeciallyto
efficientlyresolvehighvalueNPAs.TodaySAMGhas16SAMGbranchesand
43SARBsacrossthecountry.Currently,SAMGcovers23.79%and54.33%
oftheBank''sNonPerformingAssets(NPAs)andAdvancesunder
CollectionAccount(AUCA)respectively.TherecoveryeffortsofSAMG
aresupplementedbyeffortsputinbyfrontlineoperatingstaffatour
15,869branchesacrossthecountry.Besides,AccountTracking&
Monitoring(AT&M)CentreshavebeenoperationalisedinallCirclesto
contactretailSpecialMentionAccounts(SMAs)andNPAs.Business
Correspondents,BusinessFacilitatorsandSelfHelpGroupsarealso
involvedinrecoveryofAgriculturalNPAs.
ThesaleoffinalassetstoARCshasresultedinreductionofNPAsbyRs.
3,590croresandAUCAreversalofRs.1,092crores.differentstrategies
wereadoptedforachievingoptimumsaleslevelandprice.
SAMGresortstoVariousstrategiestoresolvestressedassets.Someof
theseareenumeratedbelow:
RestructuringofbothStandardassetsandNPAs,eitherthoughthe
corporatedebtrestructuringmechanismorthroughabilateral
arrangement.
RecoverythroughauctionofassetsusingtheSecuritisationand
ReconstructionofFinancialAssetsandEnforcementofSecurityInterest
(SARFAESI)route.
FilingsuitsinDebtRecoveryTribunalsandotherCourtsforrecovery
ofdues.
Identifyingandengagingwithstrategicinvestorsfortakeoverof
stressedassets.
SaleofNPAstoAssetReconstructionCompanies.
EnteringintoOneTimeSettlementswithborrowers.
UsingResolutionAgentstotakepossessionofpropertiesmortgagedto
theBankandarrangingfortheirauction.Usingtheeauctionplatform
toreachouttoasmanyprospectivebiddersaspossible.Considering
DebtAssetswapsinsomecases.Engaginginvestigationagenciesto
traceoutunencumberedpromoterandguarantorassetsandobtaining
attachmentbeforejudgementsovertheseproperties.
IdentifyingCompaniesandpromotersasWillfulDefaultersandarranging
fordisplayoftheirnamesonthewebsitesofCreditInformation
CompaniessuchasCIBIL.ThesenamesarealsoreportedtotheRBI.
Publishingphotographsofdefaultersinnewspaperswherewarranted.
PersuadinglargeCorporateborrowersunderstresstosellnoncore
assets,dilutetheirshareholdingandbringinstrategicinvestorsthus
reducingdebtandimprovingviability.AssetQualityImprovement
measuresforPSegmentTheSpecialOneTimeSettlement(OTS)schemefor
theNationallokAdalat/BankAdalattosettleNPAaccountshasbeen
useddiligently.
SMSESarebeingsenttoborrowers:(i)SevendaysbeforeEMIduedate,
(ii)OnedaybeforeEMIduedate,and(iii)AfterEMIduedate.
ThescopeofBank''sContactCentreatBarodaandtelecallingcentreat
SBICards/GE,Gurgaonhasbeenexpandedtoencompasssoftrecovery
followupsofallPSegmentloans.
AtieuphasbeenmadewithShriramAutomallIndialimited(SAMIL)to
assistoperatingfunctionariesinseizureandauctionofvehicles.
UseofloanOriginationSoftware(LOS)hasbeenmademandatoryforAuto
loansandPersonalloans(exceptloanagainstTimeDeposits,PSegment
GoldloansandEducationloans)anditsintegrationwiththeRisk
ScoringModel(RSM)andCIBILchecktotakecareofmanyprocess
relatedrisks.
AssetQualityImprovementmeasuresforAgriculture
loans
Asfarasagricultureloanswereconcerned,VariousOneTimeSettlement
Scheme(OTS)schemeslike''OTSSchemeforTractorloan'',''OTSScheme
forATl''wererolledoutforquickresolutionofhardcoreNPAsinAgri
termloans.TheseschemesresultedinarecoveryofRs.378croresduring
FY201314.
Campaignslaunched:''KCC(ZeroNPA)Campaign''waslaunchedtodrive
renewalofoverdueKCCswiththeobjectiveofarrestingNPAsaccretion
andreduction.Over16.57lakhsKCCsinthelikelystressedcategory
wererenewed.kitnaBakiHaicampaignwaslaunchedduringDecember2013
todrivedailymonitoringofKCCrenewalpositionthroughSMSbased
reportingtoreachKBN(kuchiBakiNahi).
13/24
7/5/2015
GreenPowerrepresentsaninnovativeschemetoimproveloanrecovery
cultureamongfarmersbyrewardingthevillageswithsolarstreet
lightsundercorporatesocialresponsibility.
AssetQualityImprovementmeasuresforCorporateaccounts
TheassetqualityofCAGremainedwellundercontrolwiththegross
NPAsat0.99%oftotaladvances.About87%ofCAG''sportfoliois
investmentgradewith40%carryingthehighestratingfromtheexternal
ratingagencies.
Midcorporatesegmenthasbeenmoreseverelyaffectedbytheeconomic
downturn,leadingtodeteriorationinassetquality.TheNonPerforming
Assets(NPAs)ofMCGhaveincreasedfromRs.18,443croresinMarch2013
toRs.32,715croresinMarch2014.Totacklethisissue,theGrouphas
strengthenedtheprocessesofappraisal/sanction,followupand
supervision.Everyeffortismadetoimprovetheassetqualitythrough
regularengagementwithpromotersofweak/stressedaccounts.
TheBankhasformedVariouscommitteesheadedbyChairman/Managing
Directors/DeputyManagingDirectors/ChiefGeneralManagers/General
Managers/DeputyGeneralManagerstoperiodicallyreviewstressed
assetsandsuggestresolutionstrategies.
SAMGhasbroughtinsubstantialrecoveriesinhighvalueNPAsandsome
decadesoldduesduringFY201314duetoitsspecialisedattentionand
concertedefforts.Despiteaharshenvironmentlastyear,weachieveda
decelerationinNPAaccretionduetoSAMG''srelentlesseffortsalong
withthesupportofSAMBs/SARBs/SARCs.
ThiswasparticularlyevidentduringQ4ofFY201314whenGrossand
NetNPApercentageswerebroughtdownby78basispointsand67basis
pointsrespectivelyfromthepeaklevelsof5.73%and3.24%witnessed
duringtheyear.Moredetailsarefurnishedbelow:
Exhibit22:NPAManagementperformance(Rs.incrores)
FY201112FY201213FY201314
GrossNPAsatthe39,67651,18961,605
endoftheyear
GrossNPA%4.444.754.95
NetNPA%1.822.102.57
FreshSlippages24,71231,99341,516
CashRecoveries/9,61814,88517,924
Upgradations
WriteOffs7445,59413,176
RecoveriesinWritten9621,0661,543
OffAccounts
TheSAMGandotherrecoveryoutfitsoftheBankarefullygearedtomeet
theassetqualitychallengesofFY201415whenneartermpressureis
expectedtocontinue.WeareintheprocessofestablishinganEarly
WarningSystemtoidentifyincipientsicknessandstressinloan
accountssothatwecantakeinadvancecorrectiveaction,including
timelyrestructuringindeservingcases.Thiswouldpreventslippages
andmaintaingoodassetquality.
ii.1informationtechnology
CoreBankingProject
CBSenvironmenthasbeenbenchmarkedtosupportonebillionaccounts,
over250milliontransactionsinadayanddeliveringathroughputof
over17,000transactionspersecond.Biometricauthenticationasa
secondfactorauthenticationhasbeenimplementedinbranchesforall
CBSusers.Theprocessforthesystematicandproactiverisk
identification,assessment,measurement,monitoringandmitigationof
VariousrisksintheITverticalhasbeeninitiated.
AlternateChannels
Exhibit23:AlternatechannelsGrowth(Numbers)
AsonATMsKioskscashtotal
Deposit
Machines
(CDMs)
31.03.201325,2471,23069827,175
31.03.201440,7681,2311,51643,515
ATM
StateBankofIndia,alongwithitsAssociateBankshasoneofthe
largestATMnetworksintheworldwithmorethan51,491ATMsincluding
kiosksandCashDepositMachinesason31.03.2014.SBIhasissuedmore
than17.04croresCards.TheATMBase24Switchhasrecentlybeen
upgradedtohandlecloseto50,000ATMs.
TheobjectiveistostrengthenATMfacilitiesacrosseverynookand
cornerofthisvastcountryandenhancecustomerconvenience.During
201314,SBIhasinstalled16,340ATMs,arecordinIndia''sbanking
historyforsuchamassiveATMrollout.ThetotalnumberofATMs
(standalone)nowstandsat43,515ason31.03.2014.
With26%ofmarketshareinIndia''sATMpopulation,SBI''sATMnetwork
14/24
7/5/2015
transacts38%ofthecountry''stotalATMtransactions.Onanaverage,
over70.00lakhstransactionsperdayareroutedthroughourATM
network.OurATMnetworkisoneofthebusiestinthecountrywith
averagehitrateofmorethan200transactionsperdayperATM.SBIhas
aDebitCardbase(standalone)of13.74crores.
Morethan1000ATMshavebeenenabledasTalkingATMsforVisually
ImpairedCustomersduringFY201314,whichtookthetotalTalkingATM
strengthto4,000ason31stMarch,2014.
CashDepositMachines(CDM):SBIisaggressiveinrollingoutCDMsfor
cashdepositbycustomersatthesemachinesbyusingtheir
ATMcumDebitcard.Ason31.03.2014,thenumberofCDMsinstalledwas
1,516.TheseCDMsareavailabletothecustomer24x7fortheir
convenience.
INB&eCommerce
InternetBanking
InternetBankingserviceisavailablethroughtheBank''swebsite
https://www.onlinesbi.com.TheBank''sinternetbankingsolutionisa
comprehensiveproductforbothretailandcorporateusers.
TheBank''sNetBankingPlatform''onlinesbi.com''providessecuredand
hasslefreeonlinebankingservicestoitsretailandcorporate
customers,includingPSUsandGovernmentAgencies:
Thiscosteffectivechannelhasenabled63.77crorestransactions
duringFY201314,achieving52%growthoverthepreviousyear.
OurrobustRetailInternetBankingplatformhasalsobeenoptimisedfor
visuallyimpairedcustomers.
TheCorporateInternetBankingiswellsuitedtoSmall,Mediumand
largeCorporatesinestablishingtractionwithGovernmentTreasuryand
AccountsDepartmentstoo.
DuringFY201314,theBankhasestablisheditselfasamajorplayerin
theeCommercespace:
Throughover15,000directmerchanttieups,throughStateBankCollect
orthroughprivateaggregators,theBankhasfacilitatedmorethan42
croreseCommercetransactionsduringtheyear.
OnlinecollectionofTaxes/Fee/EMDtowardseTrading/eAuctionis
beingfacilitatedthroughthenewMultiOptionPaymentSystem(MOPS)
interfacedwithportalsofPSUs,CorporationsandGovt.Departments.
SBIwasawardedsevenoutofnineawardsintheIBABankingtechnology
Awards:
TheBestTechnologyBankoftheYear
BestInternetBank
BestuseofMobileTechnology
BestuseofTechnologyinFinancialInclusion
BestCustomerManagementInitiative
BestuseofTechnologyinTrainingandelearning
BestuseofTechnologyinBusinessIntelligence
ITForeignOffices
153ForeignOfficesoftheBankin26countriesusetheFinaleCore
Bankingsolutionalongwithahostofaddon/surroundapplicationsto
meetalltheregulatoryrequirementsbesidesprovidinghighclass
customerexperience.
EnterpriseDataWarehouse
''CustomerOneView''isasolutionfora360degreeviewofholdings
withtheBank,includingthatofourAssociatesandSubsidiaries,
namely,SBIlife,SBICards,SBIMutualFundsmadeavailabletothe
RelationshipManagerstoenablethemtoofferbettercustomerservice.
Also,alargenumberofpredictiveandanalyticreportsareregularly
beinggeneratedbytheDWHtoaidbusinessplanning.
Networking
TheBankhasimplementedasecured,robustWANarchitecturenetwork
connectingbranches/officesandATMsofStateBankGroupthroughleased
linesandVSAT''s.TheBankisintheprocessofmigratingtoMulti
ProtocollabelSwitching(MPlS)architectureforimprovednetwork
performance.
CorporateWebandMailServices
InternalSocialMediaSBIAspirationssocialsoftwareisdesignedto
meettheneedsofbusinessandempowersbank''semployeestobemore
innovativeandproductive,wherecreativeideascanbeexchangedthat
canfosterincreaseinbusinessgrowth.Bankhasmadeavailableits
presenceonExternalSocialMediasiteslikeFacebook,Twitterand
YouTubeforlisteningtoandengagingwithgenerationYcustomersand
generalpublic.
AnindependentRiskGovernanceStructure,inlinewithinternational
bestpractices,hasbeenputinplace,inthecontextofseparationof
dutiesandensuringindependenceofRiskMeasurement,Monitoringand
Controlfunctions.ThisframeworkvisualisesempowermentofBusiness
15/24
7/5/2015
Unitsattheoperatinglevel,withtechnologybeingthekeydriver,
enablingidentificationandmanagementofriskattheplaceof
origination.
TheBankhasinplaceaCountryRiskManagementPolicyintunewithRBI
guidelines.Thepolicyoutlinesarobustriskmanagementmodelwith
prescriptionsforCountry,Bank,ProductandCounterpartyexposure
limits.BothCountrywiseandBankwiseexposurelimitsaremonitored
andreviewedonaregularbasis.Theexposureceilingsand
classificationsaremoderatedinlinewiththedynamicsoftheirrisk
profiles.Correctivestepsareinitiatedperiodicallytosafeguardthe
Bank''sinterests.
CreditRisk
CreditRiskisdefinedasthepossibilityofLossesassociatedwiththe
diminutioninthecreditqualityofborrowersorcounterpartiesfrom
outrightdefaultorfromreductioninportfoliovalue.CreditRisk
emanatesfromabank''sdealingswithanindividual,noncorporate,
corporate,Bank,financialinstitutionorsovereign.
Mitigationmeasures
TheBankhasstrongcreditappraisalandriskassessmentpracticesin
placeforidentification,measurement,monitoringandcontrolofthe
creditriskexposures.TheBankusesVariousinternalCreditRisk
AssessmentModelsforassessingcreditriskunderdifferentexposure
segments.InternalratingsoftheBankaresubjecttocomprehensive
ratingvalidationframework.
CreditRiskManagementDepartment(CRMD)studies37industries,
includingsectors,suchasTelecom,Power,Coal,Aviation,NBFC,
Textile,IronandSteelanddisseminatesthereportstooperatingstaff
forinformeddecisionmaking.SpecificstudiesonCompanies/Groupsas
requiredarealsoconducted.
RBIhasallowedtheBanktoparticipateintheparallelrunprocessfor
FoundationInternalRatingsBased(FIRB)undertheAdvancedApproaches
forCreditRisk.
TheCRMprojectformigrationtoFIRBisbeingimplementedbytheBank
withguidancefromanexternalConsultantappointedforthepurpose.
Thegovernancestructurehasbeenmademorerobustforeffective
implementationoftheFIRBandnewpoliciesrelatedtothesamehave
beenapprovedbytheRiskManagementCommitteeoftheBoard(RMCB).
ModelsforestimationofProbabilityofDefault(PD),lossGiven
Default(LGD)andExposureatDefault(EAD)havebeendeveloped.
BankregularlyconductsStressTestonitsCreditportfolioandStress
ScenariosareregularlyupdatedinlinewithRBIguidelines,Industry
bestpracticesandchangesinmacroeconomicVARiables.
CreditRiskManagementCommittee(CRMC)andRiskManagementCommittee
ofBoard(RMCB)meetingswereheldregularly.
MarketRisk
MarketRiskisthepossibilityoflossaBankmaysufferonaccountof
changesinvaluesofitstradingportfolio,duetochangeinmarket
Variables,suchasexchangerates,interestratesandequityprice,
amongothers.
Mitigationmeasures
TheBank''smarketriskmanagementconsistsofidentificationand
measurementofrisks,controlmeasures,monitoringandreporting
systems.
TheBankhasBoardapprovedpoliciespertainingtothesaidrisksfor
TradinginForeignExchange,Derivatives,InterestRateSecurities,
EquitiesandMutualFund.MarketrisksarecontrolledthroughVarious
risklimits,suchasNetOvernightOpenPosition,ModifiedDuration,
Stoploss,ManagementActionTrigger,CutlossTrigger,Concentration
andExposurelimits,amongothersasmentionedintherespective
policies.
Currently,marketriskcapitaliscomputedundertheStandardised
MeasurementMethod(SMM).TheBankhassubmitteditsletterofIntent
totheReserveBankofIndiatomigratetotheInternalModelsApproach
(IMA)undertheAdvancedApproachesformarketrisk.
IMAisaValueatRisk(VAR)basedtoolformonitoringoftheBank''s
tradingportfolio.TheVARmethodologyissupplementedbyconducting
quarterlystresstestsofthetradingportfolio.
TheMRMprojectformigrationtoIMAisbeingimplementedbytheBank
withguidancefromanexternalConsultantappointedforthepurpose.
SBI''sMarketRiskismonitoredandreviewedbytheMarketRisk
ManagementCommittee(MRMC)andtheRiskManagementCommitteeofthe
Board(RMCB)whichmeetregularly.
OperationalRisk
OperationalRiskistheriskoflossresultingfrominadequateor
failedinternalprocesses,peopleandsystemsorfromexternalevents.
Mitigationmeasures
ThemainobjectivesoftheBank''sOperationalRiskManagementareto
continuouslyreviewsystemsandcontrolmechanisms,createawarenessof
operationalriskthroughouttheBank,assignriskownership,alignrisk
16/24
7/5/2015
managementactivitieswithbusinessstrategyandensurecompliancewith
regulatoryrequirements,whicharethekeyelementsoftheBank''s
OperationalRiskManagementPolicy.
Importantpolicies,manualsandframeworkdocumentsinlinewithRBI
guidelinesonOperationalRiskManagementFramework(ORMF)for
migrationtoAdvancedMeasurementApproach(AMA)areinplace.
TheBankhasalreadysubmitteditsletterofIntent(LOI)tomigrateto
theAdvancedMeasurementApproach(AMA)undertheAdvancedApproaches
forOperationalrisk.
TheORMprojectformigrationtoAMAisbeingimplementedbytheBank
withguidancefromexternalConsultantappointedforthepurpose.
TheBanklevelOperationalRiskManagementCommittee(ORMC)reviewsthe
operationalriskprofileoftheBankperiodicallyandrecommends
suitablecontrols/mitigationsformanagingoperationalriskinthe
Bank.RiskManagementCommitteesatOperationalunitandBusinessunit
levelareinplace.
GroupRisk
GroupRiskManagementaimstoputinplacestandardisedriskmanagement
processesinGroupentities.GroupRiskManagementCommittee,a
committeeofexecutives,hasbeenconstitutedunderthechairmanshipof
theDMDandCCROtooverseethemanagementofriskfunctionsacrossthe
Groupentities.
Mitigationmeasures
AquarterlyanalysisofriskbasedparametersforCreditRisk,Market
Risk,OperationalRiskandliquidityRisk,amongothers,ispresented
toGroupRiskManagementCommittee/RiskManagementCommitteeofthe
Board.
ExposurelimitsforlargeBorrowerExposureandCapitalMarketExposure
asperRBIhavebeenadoptedfortheGroup.Inaddition,limitsfor
UnsecuredExposures,RealEstateandIntraGroupExposureshavebeen
setbytheBank.
AvoluntaryannualdisclosureonGroupRiskispartoftheBank''s
publishedDisclosures.
TheGroupInternalCapitalAdequacyAssessmentProcess(GroupICAAP)
documentincludesanassessmentofidentifiedrisksbyGroupentities,
internalcontrolsandmitigationmeasures,andcapitalassessment,
undernormalandstressedconditions.AllGroupentities,including
Nonbankingentities,carryouttheICAAPexerciseandaGroupICAAP
Policyisinplacetoensureuniformity.
TooverhaultheGroupRiskManagementandadoptglobalbestpractices,
theBankhasembarkeduponaGroupRiskManagementProjectrecently.
EnterpriseRisk
EnterpriseRiskManagementaimstoputinplaceacomprehensive
frameworktomanagevariousrisks.ItencompassesGlobalbestpractices
likeRiskAppetite,RiskAggregationandRiskbasedPerformance
ManagementSystem.
Mitigationmeasures
ForassessmentofPillarIrisksandPillar2risks,suchasliquidity
Risk,InterestRateRisk,CreditConcentrationRisk,aswellas
adequacyofCapitalandoverallRiskManagementpracticesundernormal
andstressedconditions,theBankhascomprehensiveInternalCapital
AdequacyAssessmentProcess(ICAAP)inplace.
AspartoftheBank''sRiskManagementProjecttotransformitsrole
intoaStrategicfunction,alignedwithBusinessObjectives,Bankhas
initiatedtheEnterpriseRiskManagement(ERM)module.
InformationSecurityrisk
InformationSecurityriskseekstoestablishstringentinformation
securitystructuretopreventdatalossandthreats.
Mitigationmeasures
TheBankhasimplementedarobustITpolicyandInformationSystem
Securitypolicy,whichareinlinewithinternationalbestpractices.
Thesepoliciesarereviewedperiodicallyandsuitablystrengthenedto
addressemergingthreats.
Regularsecuritydrillsandemployeeawarenessprogrammesareconducted
toensuresecurityandincreaseawareness.BusinessContinuity
ManagementSystems(BCMS)havebeenimplementedattheBank''sGlobalIT
Centre,Belapur.SBIisaforerunnerinsettingupofaninhouse
SecurityOperationsCentre(SOC)for24x7x365monitoringofvarious
attacksandthreatsonitsITinfrastructure,whichwasmade
operationalrecently.
DisasterRecoveryDrillsareconductedregularlyaspartofthe
implementationoftheBusinessContinuityManagementSystem(BCMS).The
BusinessContinuityExercisefortheITSystemsduringthefinancial
yearwasheldon19thJanuary,2014.CriticalITSystemsoftheBank
arecompliantwiththeInternationalBCMSStandardISO22301:2012.
InternalControls
TheBankhasinbuiltinternalcontrolsystemswithwelldefined
responsibilitiesateachlevel.Itconductsinternalauditthroughits
Inspection&ManagementAuditDepartment.AuditCommitteeoftheBoard
17/24
7/5/2015
(ACB)exercisessupervisionandcontroloverthefunctioningoftheI&
MADepartment.Theinspectionsystemplaysanimportantandcritical
roleinidentification,controlandmanagementofrisksthroughthe
internalauditfunction,whichisregardedasoneofthemostimportant
componentsofCorporateGovernance.TheBankcarriesoutmainlytwo
streamsofauditsRiskFocusedInternalAudit(RFIA)andManagement
Audit,coveringdifferentfacetsofInternalAuditrequirement.The
Bank''saccountingunitsaresubjectedtoRFIA.TheBank''sManagement
Auditcoversadministrativeofficesandexaminespoliciesand
procedures,besidesqualityofexecutionthereof.
Besides,thedepartmentconductsCreditAudit,InformationSystems
Audit(CentralisedITestablishments&Branches),HomeOfficeAudit
(auditofforeignoffices)andExpenditureAudit(atadministrative
offices)andoverseepolicyandimplementationofConcurrentAudit
(domesticandforeignoffices)andCircleAudit.Toverifythelevelof
rectificationofirregularitiesbybranches,auditofcomplianceat
selectbranchesisalsoundertaken.Duringtheperiod01.04.2013to
31.03.2014,9,230domesticbranches/BPRentitieswereauditedunderthe
RiskFocusedInternalAudit.
RiskFocusedInternalAudit
I&MADeptundertakesacriticalreviewoftheentireoperationsof
auditedunitsthroughRFIAanadjuncttoRiskBasedSupervisionasper
RBIdirectives.Thedomesticbrancheshavebeenbroadlysegregatedinto
threegroups(GroupI,II&III)onthebasisofbusinessprofileand
riskexposures.WhileauditofGroupIbranchesisadministratedbythe
CentralAuditUnit(CAU),auditofbranchesinGroupIIandIII
categoryandBusinessProcessReengineering(BPR)entitiesare
conductedby13ZonalInspectionOffices,eachofwhichisheadedbya
GeneralManager.
ManagementAudit
WiththeintroductionofRFIA,ManagementAudithasbeenreorientedto
focusontheeffectivenessofriskmanagementintheprocessesandthe
proceduresfollowedintheBank.ManagementAuditencompassesCorporate
Centreestablishments/CirclelocalHeadOffices/ApexTraining
Institutions,AssociateBanksandRegionalRuralBanks(RRB)sponsored
bytheBank.ToenhancetheeffectivenessofManagementAudit,
periodicityhasbeenreducedfromtheexistingonceinthreeyearsto
twoyears.
CreditAudit
CreditAuditaimsatachievingcontinuousimprovementinthequalityof
CommercialCreditportfoliooftheBankthroughcriticallyexamining
individuallargecommercialloanswithexposuresofRs.10croresand
aboveannually.TheCreditAuditSystemalsoprovidesfeedbacktothe
businessunitbywayofwarningsignalsaboutthequalityofadvance
portfoliointheunitandsuggestsremedialmeasures.CreditAuditalso
carriesoutareview(loanReviewMechanism)ofallthepresanction
andsanctionprocessofallindividualadvancesaboveRs.5croreswithin
6monthsofsanction/enhancement/renewal.Duringtheperiodfrom
01.04.2013to31.03.2014,8,623accountsweresubjectedtoonsite
CreditAudit.
InformationSystemAudit
AllBranchesarebeingsubjectedtoInformationSystem(IS)Auditto
assesstheITrelatedrisksaspartofRFIAofthebranch.ISAuditof
centralisedITestablishmentsiscarriedoutbyateamofqualified
officials.Duringtheperiodfrom01.04.2013to31.03.2014,ISauditsof
49centralisedITestablishmentswerecompleted.
ForeignOfficesAudit
Duringtheperiodfrom01.04.2013to31.03.2014,HomeOfficeAuditwas
carriedoutatfivebranches,ManagementAuditat05Representative
offices/CountryHeadOfficesand1Subsidiaries/JointVentures.
ConcurrentAuditSystem
ConcurrentAuditSystemisessentiallyacontrolprocess,integralto
theestablishmentofsoundinternalaccountingfunctions,effective
controlsandoverseeingofoperationsonacontinuousbasis.Concurrent
AuditSystemisreviewedonanongoingbasisinaccordancewithRBI
directives,soastocovertheBank''sAdvancesandotherriskexposures
asprescribedbytheregulatoryauthority.I&MAdepartmentprescribes
theprocesses,guidelinesandformatsfortheconductofconcurrent
auditatbranchesandBPRentities.Duringtheyear,ConcurrentAudit
Systemhasbeenrevamped,alongwiththeintroductionofawebbased
solution.
CircleAudit
CircleAudit,whichisadelegatedaudit,coverslowriskareas,andis
conductedbetweentwoRFIAs.Thisenablesauditeeunittobebetter
preparedfortheRFIA.Duringtheperiodfrom01.04.2013to31.03.2014,
9,069unitswereauditedbytheCircleAuditDepartment.
ii.3Vigilance
TheessentialfunctionoftheBank''sVigilanceAdministrationisnot
onlytocheckagainstnoncomplianceofrulesandregulationsby
initiatingsuitabledisciplinaryactionagainstserioustransgressions,
butalsotodeviseandimplementvariouspreventivemeasuresby
reviewingthesystemsandprocessestoensurehighereffectivenessand
leastvulnerability.
Theconceptofvigilanceasaninvestigativeprocessandanexercise
forpunitiveactionhasovertimeevolvedtothatof''Vigilancefor
CorporateGrowth'',theemphasisgettingshiftedfrompunitivevigilance
18/24
7/5/2015
to''PreventiveandProactiveVigilance''throughanactiveparticipation
ofallconcerned.SomeoftheBank''simportantpreventivemeasures
comprisethefollowing:
PreventiveVigilanceCommittee(PVC)Meetingsarebeingheldatthe
branchesandtheBPRoutfitsatquarterlyintervals.
UnderWhistleBlowerScheme,ourstaffmembersareexpectedtoadvise
appropriateauthoritiesaboutirregularandunethicalpractices,if
any,beingindulgedinbycolleaguesandevenseniors.
Suomotoinvestigationsareconductedatfraud/complaintprone
branches.Theprimaryaimofsuchinvestigationsistofindout
nonadherencetothesystemsandproceduresbythebranch,whichmay
leadtoperpetrationoffraudinfuture.Suitablecorrectivemeasures
areinitiatedtostopirregularpractices,ifany,broughtoutinthe
report.
Ason31.03.2014,1,024casesofofficersweretakenupforexamination
underthevigilancecategory,comparedto1,160casesduringthe
previousfinancialyear.
ii.4Humanresources
TheBankhasbecomeanemployerofchoiceinIndiaandoneofthemost
employeefriendlyorganisationstoday.HRauditsandmammothHR
exercisesnowformcriticalstrategiesinchangemanagementto
facilitateemployeecommunicationanddevelopaleadershippoolby
carefulsuccessionplanning.
Hrawardsandaccolades
GoldenpeacockawardforHRexcellence.
WorldHRDCongressawardfororganisationwithinnovativeHRpractices.
WorldHRDCongressawardforinnovationinRecruitment.
Talentmanagementisconsideredasanequallyimportantfacetofan
organisation''seffectiveness.Accordingly,ourBankhasbeenmakinga
constantendeavourtoimprovethefunctioningofHRasastrategic
businesspartner.
TheBankhasatotalpermanentstaffstrengthof2,22,033on31st
March,2014.
Outofthis,79,755(35.92%)areofficers,1,01,648(45.78%)are
clericalstaffandtheremaining40,630(18.30%)aresubstaff.
exhibit25:Movementofstaff
officersAssistantssubordinatetotal
staff
Ason31.3.201380,7961,09,68637,8142,28,296
less:3,8618,3882,03514,284
Retirements/
Attrition
Add/less():1,426()1,426()
Dueto
promotion
ofclerical
staffto
officersgrade
Add:New
Addition1,3941,7764,8518,021
Ason31.03.201479,7551,01,64840,6302,22,033
WomenEmployeesintheTotalWorkforce:
Atpresent,thestrengthofwomenemployeesinthetotalworkforceof
theBankis45,132whichconstitutesmorethan20%ofthetotalstaff
strength.Thecompositionofwomenemployeesindifferentcadreisas
under:
ImprovementinEmployeeProductivity
ThelargescalerecruitmentofGennextemployeesintheOfficersas
wellasintheAssistantgradeoverthelast3/4yearshasnotonly
broughtaboutafarreachingattitudinalchangeamongstaffintheir
customerinterfaceandservicesacrossthebranches,ithasalsobecome
acatalystinenhancing/improvingtheproductivityandefficiencyofthe
employees,therebyresultinginincreasinggrowthinbusinessand
profitabilityfortheBank.Thebusinessperemployee(BPE)has
increasedduringtheperiodfrom201011to201314asperdata
furnishedbelow.Inthisconnection,theprofitperemployee(PPE)has
alsoincreasedfromRs.3.85lakhsin201011toRs.6.45lakhsin201213.
However,thePPEhasdeclinedtoRs.4.85lakhsin201314primarilydue
tohigherprovisioning,increaseinoverheadsandstaffcostduringthe
year.Further,variouscostcontrolmeasures/practiceshavebeen
reiteratedforadoption/complianceatalllevelstoimprovetheBank''s
profitability.
IndustrialRelations
RegularconsultativemeetingswereheldwiththeAssociations/Unionsas
partoftheconstructivedialogueforunderstandingandaddressing
grievancesofvariouscategoriesofemployees.Theseconsultationsare
donebothatCorporateCentreasalsoatCircles.variousissuesraised
bytheFederationswereexaminedonmeritsandnecessaryactionwas
19/24
7/5/2015
takenforitsresolution.
StatusofWomenatworkplace:
TheexistingpolicyoftheBankprovidingforprotectionagainstSexual
Harassmentofwomenatworkplaceandforthepreventionandredressal
ofcomplaintsofsexualharassmentandformattersconnectedtherewith
orincidentaltheretowasrevised/upgradedtoincorporatethe
requirementsaspertheActpassedinParliament.TheBankhasazero
tolerancetowardssexualharassmentatworkplacesandhasputinplace
appropriatemechanismtoensurethatwomenworkwithdignityand
withoutfear.
exhibit29:complaintsofsexualHarassmentofwomenfled&disposed
offduringFY201314
TotalNo.ofcasesfledTotalNo.casesdisposedoff
3020
OtherInitiatives
TheBankhasimprovedstaffperquisiteslikeprovisionofsabbatical
leaveforwomenandsinglemen(withchildrenand/oragedparents)
employees
TheBankhasmadeacomprehensivereviewofpromotionpoliciestotake
careofcontemporaryaswellasfuturerequirements.Thiswillenable
ustomeetoursuccessionplanningneedsbyensuringadequateexposure
ofofficialstovariousaspectsofBanking.Theseinitiativeshave
motivatedemployeesandimprovedtheirproductivity,besidesresulting
inahealthyemployeremployeerelationship.
Exhibit30:reservationinemployment
categorytotalSCSTPWD
Officers79,75513,8905,645573
(17.41%)(7.07%)(0.71%)
Assistants1,01,64817,2868,7551,801
(17.00%)(8.61%)(1.77%)
Substaff40,63011,5682,843236
(28.47%)(7.00%)(0.58%)
Total2,22,03342,74417,2432,610
(19.25%)(7.76%)(1.17%)
TheBankprovidesreservationtoScheduledCastes,ScheduledTribes&
PersonswithDisabilities(PWDs)asperGovernmentofIndia(GOI)
directives.liaisonOfficershavebeendesignatedatalllocalHead
OfficesoftheBankandtheCorporateCentreatMumbaiinordertodeal
withissuesrelatingtoreservationpolicyandeffectivelyredressthe
grievancesoftheSC/STemployees.
ii.5strategictrainingUnit(STU)
Ourtrainingsystemfunctionsundertheoverallsupervisionand
guidanceofSTUandthetrainingapparatusatpresentconsistsof5
Apextraininginstitutesand47learningCentres.ThesixthATI,named
theStateBankInstituteofManagement,isbeingsetupatRajarhat,
NewTown,Kolkata.
Principlesthatdrivelearningactivities
Allemployeesundergoatleastoneinstitutionaltrainingduringa
year.
Trainingprogrammesarealignedwithcurrentcorporateprioritiesof
theBusinessUnits.
Acultureofselflearningisinculcatedineveryemployee.
Activepromotionofonlinelearningincludesmandatoryrolebased
lessonssupportedbyRewardsandRecognitions.
UnderitsRewardandRecognitionScheme,theBankalsoactively
encouragesitsemployeestopursuevariousstudycoursesofferedby
externalinstitutes.
Highlightsofachievements
Trainedmorethan2,34,763participantsduring201314covering60%of
Officialsand68%ofawardstaff.
Hosted366lessons,coveringoperationallyrelevanttopics,in
elearningportal.
Uploaded219shortdurationecapsules(of15minuteseach)forfaster
disseminationofknowledgeamongemployees,especiallyfrontlinestaff.
Mobilenuggets(shortstudymaterialsonmobilehandsets)made
availableonpilotbasis.
Arrangedvideolecturesonindustryspecificinputsforsenior
executives.
Trainingforstaffbyhospitalityindustry.
Trainedallemployeesaboutgendersensitivityatworkplace.
ii.6officiallanguage
20/24
7/5/2015
StaffmembersarebeingcontinuouslytrainedinHindilanguagetowork
inHindioncomputersforthepurposeofOfficiallanguage
implementation.
TheBankhasmadethecontentofcorporateandinternetsitesavailable
bilingually.variousstaffmanualshavebeenprovidedinHindionHRMS
portaloftheBank.Fortheconvenienceofthecustomers,thematerial
onSMEportaloftheBankhasbeenprovidedinHindi.Providing
informationondifferentproductsandservicesinHindithroughlCDs
installedinthebrancheshasincreasedtheirpopularity.TheATMhits
inHindiisrapidlyincreasingtoo.
TheInHouseHindimagazine''PRAYAS''ofourBankhasbeenaccredited
withagrandachievementthisyear,ontheoccasionofHindiDay,on
14thSeptember,2013.
PRAYAS
PRAYAS''wasawardedasthebestinhousemagazinein''B''region.The
BankwasfelicitatedwiththeFirstprizeatVigyanBhavan,newDelhi
bytheHon.presidentofIndia.''prayas''alsobaggedSecondprizein
RBI''sInHouseHindimagazinecompetitionandtheBankwasconferred
theSecondprizeinthe''IndianLanguagepublicationcategory''
competitionbytheassociationofBusinessCommunicatorsofIndia
(aBCI).
ii.7.corporatesocialresponsibility(CSR)
OurCSRactivitytouchesthelivesofmillionsofpoorandneedyacross
thelengthandbreadthofthecountry.TheBankhasacomprehensive
CorporateSocialResponsibility(CSR)Policy,approvedbytheExecutive
CommitteeoftheCentralBoardinAugust2011andearmarks1%ofthe
previousyear''snetprofitasCSRspendbudgetfortheyear.
FocusareasofourCSRactivitiesare:Supportingeducation.
Supportinghealthcare.
Assistancetopoor&underprivileged.
Environmentprotection.
Entrepreneurdevelopmentprogramme.
Assistanceduringnaturalcalamitieslikefoods/droughtsetc.
SupportingEducation:
Tosupportschooleducationandproviderelieffromheattomillionsof
schoolchildrenspeciallytheunderprivilegedchildren,Bankhas
provided1,40,000electricfansto14,000schoolsacrossthecountry
during201314.
Infrastructuresupportbywayoffurniture,computersandother
educationalaccessoriesanddonationoflargenumberofschool
buses/vanstothephysically/visuallychallengedchildrenandchildren
belongingtoeconomicallyweakersectionofsociety.
SupportingHealthcare:
Bankdonated210medicalvans/ambulanceswithanexpenditureofRs.18.38
croresduringtheyear.
Medicalequipmenthavebeenprovidedat90centresworthRs.8.87crores.
Bankinstalledmorethan30,000waterpurifiersinschoolsensuring
clean&safedrinkingwaterformillionsofschoolgoingchildren.
Assistanceduringnaturalcalamities:
DuringthecurrentfiscaltheBankhasdonatedRs.6.00crorestotheChief
Minister''sReliefFundofthreestates.
GreenBanking:
Bankhasadoptedenergyefficientmeasures.
SBIisthelargestdeployedofsolarATMs.
Bankhasinstalledwindmillsinthreestatesforitsownenergyneeds.
PaperlessBankingispromotedandimplementedacrossthecountry.
Givesprojectloansatconcessionaryrateofinteresttoencourage
reductionofgreenhousegasesbyadoptingefficientmanufacturing
practices.
Research&DevelopmentFund
TheBankmakesanannualcontributionofGBP100,000towardsaChair
setupbytheBankjointlywithRBIattheAsiaResearchCentreat
LondonSchoolofEconomics.OurR&DFunddonationsamountedtoRs.1.03
croresduring201314.
SBIChildren''sWelfareFund
TheBankconstitutedSBIChildren''sWelfareFundasaTrustin1983
whichextendsgrantstoinstitutionsengagedinthewelfareof
underprivilegedchildrenlikeorphans,destitute,mentally/physically
challenged,etc.TheCorpusoftheFundismadeupofcontributionsby
staffmembersandmatchingcontributionprovidedbytheBank.During
theFY201314,12projectswereassistedwithRs.34.70lakhs.
CSRawardsandaccolades
21/24
7/5/2015
TheyearFY201314witnessedthehighestnumberofawardsfortheBank
inCSRachievements.
ConferredAsia''sBestCSRpracticeaward,2013byCMOAsiain
Singapore.
Wonanawardfor''BestCSRpractices''atAsianBFSIawards2013in
Dubai.
otherprominentawardsconferred
IPEBFSIaward2013forBestCSRpractices.
India''sMostethicalCompaniesawards2013forethicalCompanyin
Banking.
AsiaGreenFutureLeadershipaward2013for''BestGreenService
Innovation''.
MyFMStarsoftheIndustryawardforexcellenceinBanking(PSU)2013.
NewsInkLegendPSUShiningaward2013.
ABPnewsBFSI2013forBestCSRpracticesaward.
ABPnewsGlobalCSRexcellence&Leadershipawardfororganisations
withbestCSRpractices.
BlueDartGlobalCSRexcellence&LeadershipawardforBestuseof
CSRpracticesinBankingandFinancialSector.
GlobalCSRexcellence&Leadershipaward2013.
III.ASSOCIATESANDSUBSIDIARIES
TheStateBankGroup,withanetworkof21,977branches(including
6,108branchesoffiveAssociateBanks)dominatesIndia''sbanking
industry.Inadditiontobanking,theGroup,throughitsvarious
subsidiaries,providesawholerangeoffinancialservices,including
lifeInsurance,MerchantBanking,MutualFunds,CreditCard,Factoring,
Securitytrading,PensionFundManagement,CustodialServices,General
Insurance(NonlifeInsurance)andPrimaryDealershipintheMoney
Market.
AssociateBanks
ThefiveAssociateBanksofSBIhadamarketshareof5.48%indeposits
and5.88%inadvancesasonlastFridayofMarch2014.
exhibit31:performanceHighlightsof
AssociateBanks(overall)(Rs.incrores)
AsonAsonChange
31.03.201431.03.2013(%)
TotalAssets5,18,2555,04,5562.72
AggregateDeposits4,33,0914,17,6573.70
TotalAdvances3,63,4023,40,3216.78
OperatingProfit8,3688,8034.94
NetProfit2,7773,67824.50
CreditDepositRatio83.91%81.48%243bps
CapitalAdequacy11.20%11.85%65bps
Ratio
GrossNPA18,21111,58957.14
NetNPA10,7196,14374.48
Returnonequity9.77%14.33%456bps
rankingsSBICapitalMarketsLimited(SBICAP)
Rankedno.1GlobalMandatedLeadarrangerinprojectFinanceLoansby
Dialogic.
Rankedno.1GlobalprojectFinanceBookrunnerbyThomsonReuters.
Rankedno.1inthenumberofissueshandledforthepublicissueof
debtinFY2013byprime.
AwardsbestowedonSBILIFEinFY201314
BestLifeInsuranceprovider2013(RunnerUp)byoutlookMoney.
MostTrustedprivateLifeInsuranceBrand2013byTheeconomicTimes,
BrandequityandNielsenSurvey.
Globalperformanceexcellenceaward2013byAsiapacificQuality
organisationDigitalInclusionSkochawards2013enablingpartnersto
collectpremiumthroughelectronicFundTransferCash&DirectDebit.
InformationofSubsidiariesandJointVenturesDomesticBanking
Subsidiaries
exhibit32:TheperformancehighlightsoftheAssociateBanksason
31.03.2014areasunder:
22/24
7/5/2015
(Rs.incrores)
s.NameoftheSBIshareoftotalAgg.totalop.
NoBankownershipDeposits
AssetsAdvancesprofit
Amt.%
1StateBankof676.1275.0790,87772,95365,3331,695
Bikaner&
Jaipur
2StateBankof367.55100.001,44,0121,20,85998,8852,691
Hyderabad
3StateBankof628.6390.0073,97661,08750,8911,164
Mysore
4StateBankof907.10*100.001,04,10589,48577,8111,448
Patiala
5StateBankof505.85*78.90*1,05,28588,70770,4821,370
Travancore
NameoftheNetCDCARGrossNetreturn
Bankon
profitratio%NpAs%NPAequity
%%
StateBankof73289.5611.554.182.7612.85
Bikaner&Jaipur
StateBankof1,01981.8212.005.893.129.36
Hyderabad
StateBankof27483.3111.085.543.295.57
Mysore
StateBankof44886.9510.384.833.174.95
Patiala
StateBankof30479.4610.794.352.788.82
Pravancore
Exhibit33:
NonBankingSubsidiaries(Rs.incrores)
s.Nameofthesubsidiary
companyownership
(state%ofNetprofit
(Losses)
NoBank
interest)/ownershipforthe
FY201314
crores
1SBICapitalMarketsltd.
(Consolidated)58.03100262.63
2SBIDFHIltd.139.1563.7860.70
3SBIPaymentServices
Pvt.ltd.2.001000.33
4SBIMutualFundTrustee
CompanyPvtltd.0.101001.65
5SBIGlobalFactorsltd.137.7986.1856.7
6SBIPensionFundsPvt.ltd.18.00602.59
exhibit34:
JointVentures(Rs.incrores)
s.Nameofthesubsidiary
companyownership
(state%ofNetprofit
(Loses)
NoBank
interest)/owner
shipforthe
FY201314
crores
1SBIFundsManagementPvt.ltd.31.5063155.77
2SBIFundsManagement
(International)Pvt.ltd.(USD)USD5000063(0.46)
3SBICards&PaymentServices
Pvt.ltd.471.0060293.10
4SBIlifeInsuranceCompanyltd.740.0074740.10
5SBISGGlobalSecurities
ServicesPvt.ltd.52.00650.21
6SBIGeneralInsurance
Companyltd.129.5074(98.39)
7CEdgeTechnologiesltd.4.949163.8
23/24
7/5/2015
8GECapitalBusinessProcess
Mgt.ServicesPvt.ltd.10.804024.10
9MacquarieSBIInfrastructure
Mgt.Pte.ltd.2.2545USD68,09,865
10MacquarieSBIInfrastructure
Trusteeltd.#LOSSUSD42,884
11SBIMacquarieInfrastructure
Mgt.Pvt.ltd.18.57457.84
12SBIMacquarieInfrastructure
TrusteePvt.ltd.0.025450.02
13OmanIndiaJointInvestment
FundMgt.CoPvt.ltd.2.30502.72
14OmanIndiaJointInvestment
FundTrusteeCoPvt.ltd.0.01500.00
#100%SubsidiaryofMacquarieSBIInfrastructureMgt.Pteltd
RESPONSIBILITYSTATEMENT
TheBoardofDirectorsherebystates:
i.thatinthepreparationoftheannualaccounts,theapplicable
accountingstandardshavebeenfollowedalongwithproperexplanation
relatingtomaterialdepartures;
ii.thattheyhaveselectedsuchaccountingpoliciesandappliedthem
consistentlyandmadejudgmentsandestimatesasarereasonableand
prudent,soastogiveatrueandfairviewofthestateofaffairsof
theBankasonthe31stMarch,2014,andoftheprofitandlossofthe
Bankfortheyearendedonthatdate;
iii.thattheyhavetakenproperandsufficientcareforthemaintenance
ofadequateaccountingrecordsinaccordancewiththeprovisionsofthe
BankingRegulationAct,1949andStateBankofIndiaAct,1955for
safeguardingtheassetsoftheBankandpreventinganddetectingfrauds
andotherirregularities;and
iv.thattheyhavepreparedtheannualaccountsonagoingconcern
basis.
ACKNOWLEDGEMENT
Duringtheyear,SarvashriDiwakarGupta,ManagingDirectorandShri
PratipChaudhuri,Chairman,retiredonattainingsuperannuationon31st
July&30thSeptember2013,respectively.
ShriTribhuwanNathChaturvediwasnominatedasDirectorundersection
19(d)byGovernmentofIndiaw.e.f.29thAugust,2013.Smt.Arundhati
BhattacharyawasappointedasManagingDirectorundersection19(b)
w.e.f.2ndAugust,2013andthereafter,Chairmanundersection19(a)
w.e.f.7thOctober2013.ShriP.Pradeepkumarwasappointedas
ManagingDirectorundersection19(b)w.e.f.27.12.2013ontheBoard.
TheDirectorsplaceonrecordtheirappreciationofthecontributions
madebytherespectiveoutgoingDirectors,namely,ShriDiwakarGupta
andShriPratipChaudhuritothedeliberationsoftheBoard.The
DirectorswelcomethenewDirectorsShriTribhuwanNathChaturvedi,
Smt.ArundhatiBhattacharyaandShriP.PradeepkumarontheBoard.
TheDirectorsalsoexpresstheirgratitudefortheguidanceand
cooperationreceivedfromtheGovernmentofIndia,RBI,SEBI,IRDAand
othergovernmentandregulatoryagencies.
TheDirectorsalsothankallthevaluedclients,shareholders,banks
andfinancialinstitutions,stockexchanges,ratingagenciesandother
stakeholdersfortheirpatronageandsupport,andtakethisopportunity
toexpresstheirappreciationofthededicatedandcommittedteamof
employeesoftheBank.
Forandonbehalfofthe
CentralBoardofDirectors
Date:23rdMay,2014Chairman
Source:DionGlobalSolutionsLimited
24/24

State Bank of India Directors Report, SBI Reports by Directors

Hochgeladen von

Dokumentinformationen

Copyright

Verfügbare Formate

Dieses Dokument teilen

Dokument teilen oder einbetten

Freigabeoptionen

Stufen Sie dieses Dokument als nützlich ein?

Sind diese Inhalte unangemessen?

Copyright:

Verfügbare Formate

State Bank of India Directors Report, SBI Reports by Directors

Hochgeladen von

Copyright:

Verfügbare Formate

7/5/2015

Das könnte Ihnen auch gefallen