State Bank of India

State Bank of India is the largest state-

owned banking and financial services company in India, by almost every parameter - revenues, profits, assets, market capitalization, etc. The bank traces its ancestry to British India, through the Imperial Bank of India, to the founding in 1806 of the Bank of Calcutta, making it the oldest commercial bank in the Indian Subcontinent. The Government of India nationalized the Imperial Bank of India in 1955, with the Reserve Bank of India taking a 60% stake, and renamed it the State Bank of India. The State Bank Group, with over 16,000 branches, has the largest banking branch network in India..

 The State bank of India is the 10th most reputed company in the world according to Forbes
SBI's still surviving associate banks are: State Bank

of Bikaner & Jaipur State Bank of Hyderabad State Bank of Mysore State Bank of Patiala State Bank of Travancore SBI has 21000 ATMs. SBI has 26500 branches, inclusive of branches that belong to its Associate banks. SBI alone has 13076 Branches (including the branches of State Bank of Indore), as on 26 August 2010

Mission
To retain the banks position as the premier Indian

financial services. It also aims to be a group with world class standards and significant global business commitments to excellence in customer, shareholder and employee satisfaction so as to play a leading role in expanding and diversifying financial services while continuing emphasis on its development banking role.

Vision
To be a premier Indian financial services group with

global perspective, world class standard of the efficiency and professionalism and also its core institutional values, To retain its position in the country as a pioneer in developing countries, It also aims to maximize its shareholders value through high sustained earnings per share, To become an institution with a culture of mutual care and commitment. It also focuses on a pleasant working environment to have continuous learning opportunities.

Values
Excellence in customer service.
Profit orientation. Belonging and commitment to the bank. Fairness in all dealings and relations. Risk taking and innovation. Team-playing. Learning and renewal. Integrity. Transparency and discipline in policies and systems.

Products offered by SBI

State Bank of India offers its products and

services in domains like Personal Banking. NRI Services. Agriculture. International. Corporate. SME. Domestic Treasury.

Services Offered by SBI

Domestic Treasury. SBI Vishwa Yatra Foreign Travel Card. Broking Services Revised Service Charge. ATM Services.

Internet Banking.
E-Pay. E-Rail. RBIEFT. Safe Deposit Lockers. Gift Cheques. MICR Codes. Foreign Inward Remittances.

Principles of corporate governance

Rights and equitable treatment of shareholders
Interests of other stakeholders Role and responsibilities of the board Integrity and ethical behaviour Disclosure and transparency

The Bank's Philosophy on Code of Governance

The Bank believes that good corporate governance is much more than

complying with legal and regulatory requirements. Good governance facilitates effective management and control of business, enables the Bank to maintain a high level of business ethics and to optimize the value for all its stakeholders. The objectives can be summarized as: To enhance shareholder value. To protect the interests of shareholders and other stakeholders including customers, employees and society at large. To ensure transparency and integrity in communication and to make available full, accurate and clear information to all concerned. To ensure accountability for performance and to achieve excellence at all levels. To provide corporate leadership of highest standard for others to emulate.

Composition of the Board

The Board is headed by the Chairman, appointed under section 19(a) of SBI Act; two Managing Directors are also appointed members of the Board under section 19(b) of SBI Act. These included representatives of shareholders, nominee officials of Government of India and Reserve Bank of India and directors nominated by the Government of India under Section 19(d) of the State Bank of India Act, 1955. Apart from the whole time Directors comprising Chairman and two Managing Directors, Central Board of Directors (As on 14th May 2010) Chairman Shri O. P. Bhatt Managing Directors Shri S. K. Bhattacharyya Shri R. Sridharan (Directors elected under Section 19(c) of SBI Act) Dr. Ashok Jhunjhunwala Shri Dileep C. Choksi Shri S. Venkatachalam Shri D. Sundaram Term: 3 years and eligible for re-election for further period of 3 years Maximum tenure: 6 years continuously (Directors under Section 19(d) of SBI Act) Dr. Deva Nand Balodhi Prof. Md. Salahuddin Ansari Dr. (Mrs.) Vasantha Bharucha Dr. Rajiv Kumar Term: 3 years or till the Successor is appointed and eligible for re-appointment / renomination Maximum tenure: 6 years continuously (Director under Section 19(e) of SBI Act) Shri Ashok Chawla (Director under Section 19(f) of SBI Act) Smt. Shyamala Gopinath

Committees
(1) Executive Committee,
(2) Audit Committee, (3) Risk Management Committee, (4) Shareholders'/Investors' Grievance Committee, (5) Special Committee for Monitoring of Large Value

Frauds (Rs.1 crore and above), (6) Customer Service Committee, (7) Technology Committee (8) Remuneration Committee

 Meetings of the Central Board and its Committees The Bank's Central Board meets a minimum of six times a

year. During the year 2009-10, ten Central Board Meetings were held.

Executive Committee of the Central Board

The Executive Committee of the Central Board (ECCB) is constituted in

terms of Section 30 of the SBI Act, 1955.

ECCB consists of the Chairman, the Managing Directors, the Director

nominated under Section 19(f) of the SBI Act (Reserve Bank of India nominee), and all or any of the other Directors.

The ECCB meetings are held once every week. The details of attendance

of ECCB

Audit Committee of the Board

The Audit Committee of the Board (ACB) was constituted on 27th July

1994 and last re-constituted on the 9th May 2009.

The ACB functions as per RBI guidelines and complies with the provisions

of Clause 49 of the Listing Agreement to the extent that they do not violate the directives/guidelines issued by RBI.

Shareholders'/Investors' Grievance Committee of the Board

In pursuance of Clause 49 of the Listing Agreement with the Stock

Exchange, Shareholders'/Investors' Grievance Committee of the Board (SIGCB) was formed on the 30th January 2001, to look into the redressal of shareholders' and investors' complaints regarding transfer of shares, nonreceipt of annual report, non-receipt of interest on bonds/declared dividends, etc. Number of shareholders complaints received so far (during the year): 274 Number of complaints not solved to the satisfaction of shareholders: NIL Number of Pending Complaints: NIL Name and designation of Compliance officer : Shri Shyamal Sinha, General Manager (Compliance)

Special Committee of the Board for Monitoring of Large Value Frauds (Rs.1 crore and above)

The Special Committee for monitoring of Large Value Frauds (Rs.1 crore and above) was constituted on the 29th March 2004. The major functions of The Committee was last reconstituted on the 9th May 2009 with five members and is chaired by a non-executive Director. The Committee met four times during 2009-10 and reviewed the position of complaints the Committee are to monitor and review all large value frauds with a view to identifying systemic lacunae, if any, reasons for delay in detection and reporting, if any, monitoring progress of CBI/ Police investigation, recovery position, ensuring that staff accountability exercise is completed quickly, reviewing the efficacy of remedial action taken to prevent recurrence of frauds and putting in place suitable preventive measures. The Committee was last reconstituted on the 9th May 2009 with seven members. The Managing Director & Chief Credit and Risk Officer is the Chairman of the Committee. The Committee met four times during 2009-10.

Customer Service Committee of the Board

The Customer Service Committee of the Board was

constituted on the 26th August 2004, to bring about ongoing improvements on a continuous basis in the quality of customer service provided by the Bank. The Committee was last reconstituted on the 9th May 2009 with six members. The Managing Director & Chief Credit and Risk Officer is the Chairman of the Committee. During the year 2009-10, four meetings of the Committee were held.

Technology Committee of the Board

The Technology Committee of the Board was constituted on 26th August

2004, for tracking the progress of the Banks IT initiatives.

The Committee was last reconstituted on the 9th May 2009 with six

members and is chaired by a non-executive Director.

The Committee met seven times during 2009-10.

Remuneration Committee of the Board

The Remuneration Committee was constituted on 22nd

March 2007, for evaluating the performance of Whole Time Directors of the Bank in connection with the payment of incentives, as per the scheme advised by Government of India in March 2007. The Committee was last reconstituted on 9th May 2009. The Committee has four members consisting of (i) the Government Nominee Director, (ii) the RBI Nominee Director and (iii) two other Directors - Dr Ashok Jhunjhunwala and Shri S. Venkatachalam. The Committee scrutinized and recommended payment of incentives to whole time Directors for the year ended 31.03.2009.

Risk Management
The Risk Management Committee of the Board

(RMCB) was constituted on the 23rd March 2004, to oversee the policy and strategy for integrated risk management relating to credit risk, market risk and operational risk. The Committee was last reconstituted on the 9th May 2009 with six members. The Managing Director & Chief Credit and Risk Officer is the Chairman of the Committee. RMCB meets a minimum of four times a year, once in each quarter. During 2009-10, four meetings of the RMCB were held.

Risk Management Contd

Businesses are required to confirm periodically that all relevant risks have been identified, assessed, evaluated and that appropriate mitigation systems have been implemented. The combination of policies and processes as outlined above adequately addresses the various risks associated with the Companys businesses. The senior management of the Company periodically reviews the risk management framework to maintain its contemporariness so as to effectively address the emerging challenges in a dynamic business environment.

SWOT Analysis