You are on page 1of 24

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

StateBankofIndiaDirectorsReport,SBIReportsbyDirectors

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.

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%

2/24

7/5/2015

StateBankofIndiaDirectorsReport,SBIReportsbyDirectors

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
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%

3/24

7/5/2015

StateBankofIndiaDirectorsReport,SBIReportsbyDirectors

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.

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%

4/24

7/5/2015

StateBankofIndiaDirectorsReport,SBIReportsbyDirectors

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
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%

5/24

7/5/2015

StateBankofIndiaDirectorsReport,SBIReportsbyDirectors

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

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%

6/24

7/5/2015

StateBankofIndiaDirectorsReport,SBIReportsbyDirectors

DealerFinancescheme(Rs.incrores)

particularsAsonAsonGrowth
31.03.201331.03.2014(%increase)

limits6,5329,4872,955(45.24%)
Sanctioned

Outstandings4,7857,5332,748(57.42%)

Exhibit11:performanceinelectronic

VendorFinancescheme(Rs.incrores)

particularsAsonAsonGrowth
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)

particularsAsonAsonGrowth
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)

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%

7/24

7/5/2015

StateBankofIndiaDirectorsReport,SBIReportsbyDirectors

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
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%

8/24

7/5/2015

StateBankofIndiaDirectorsReport,SBIReportsbyDirectors

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
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%

9/24

7/5/2015

StateBankofIndiaDirectorsReport,SBIReportsbyDirectors

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

StateBankofIndiaDirectorsReport,SBIReportsbyDirectors

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.

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

11/24

7/5/2015

StateBankofIndiaDirectorsReport,SBIReportsbyDirectors

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
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

12/24

7/5/2015

StateBankofIndiaDirectorsReport,SBIReportsbyDirectors

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).

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

13/24

7/5/2015

StateBankofIndiaDirectorsReport,SBIReportsbyDirectors

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
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

14/24

7/5/2015

StateBankofIndiaDirectorsReport,SBIReportsbyDirectors

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
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

15/24

7/5/2015

StateBankofIndiaDirectorsReport,SBIReportsbyDirectors

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
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

16/24

7/5/2015

StateBankofIndiaDirectorsReport,SBIReportsbyDirectors

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
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

17/24

7/5/2015

StateBankofIndiaDirectorsReport,SBIReportsbyDirectors

(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
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

18/24

7/5/2015

StateBankofIndiaDirectorsReport,SBIReportsbyDirectors

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
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

19/24

7/5/2015

StateBankofIndiaDirectorsReport,SBIReportsbyDirectors

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

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

20/24

7/5/2015

StateBankofIndiaDirectorsReport,SBIReportsbyDirectors

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
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

21/24

7/5/2015

StateBankofIndiaDirectorsReport,SBIReportsbyDirectors

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:
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

22/24

7/5/2015

StateBankofIndiaDirectorsReport,SBIReportsbyDirectors

(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

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

23/24

7/5/2015

StateBankofIndiaDirectorsReport,SBIReportsbyDirectors

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

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

24/24