I. ECONOMIC BACKDROP AND BANKING ENVIRONMENT
GLOBAL ECONOMIC SCENARIO
Global economic activity gathered momentum in the second half of last year and it
continues to grow in 2018. World GDP growth recovered to an estimated 3.8% in 2017
compared to 3.2% in the previous year. Both the developed and the developing countries
performed well, growing at 2.3% and 4.8% respectively. The US economy grew more than
expected against the backdrop of abatement of past exchange rate appreciation impact and
oil price movement coupled with support from good consumption growth and rebound in
investment. Euro area also surprised positively witnessing its fastest pace of growth in a
decade and surpassing the US growth in 2017. The uncertainty surrounding Brexit weighed on
the UK economy, however it recovered in the final months of the year. In Japan, improved
global demand for technological products stimulated investment in high-end sectors
including auto, machinery including robots and semi-conductors.
Among the emerging and developing world, economic contraction ended in Russia and
Brazil, thereby adding to growth. However, despite improvement in oil dynamics Saudi
Arabia witnessed negative growth owing to low oil output and sluggish performance of
non-oil sector. Even Mexico suffered against the backdrop of uncertainty surrounding NAFTA
and presidential elections. Meanwhile, China witnessed its first annual acceleration since
2010 with export growing at their quickest pace in four years.
India's GDP growth is expected to have moderated to 6.6% in FY2018. However, this is
likely to be transitory. Meanwhile, Government reforms continue to provide support to
Looking ahead, as per IMF projections the world economy is poised to grow at 3.9% in
2018 as well as 2019. However, looming threat of trade wars against the background of
increase in tariffs by the US and retaliation by China is one of the risks to global
growth. World trade is recovering smartly in 2017, registering a growth of around 10% and
11% for exports and imports respectively, but rising protectionism and trade war can
threaten trade and economic growth. In addition, uncertainty surrounding elections in many
European countries including Russia, Italy, Hungary among others and escalation of
sanction issue in Iran are other key risks that could dampen the growth prospects.
Another major development having an impact on global economy is the oil price which has
recovered to over US$ 80 per barrel recently. Looking ahead, geo-political tensions in
middle-east with probable sanctions on Russia may affect oil price dynamics.
INDIA'S ECONOMIC SCENARIO
India's economic growth is expected to gather momentum in FY2019, benefitting from a
conducive domestic and global environment. The factors that will help in achieving 7.4%
GDP growth in FY2019 compared to 6.7% in FY2018 are: (i) the troubles relating to
implementation of the GST have been sorted out, (ii) credit off-take has improved and is
becoming increasingly broad-based, (iii) large resource mobilisation from the primary
market strengthening investment activity, (iv) the process of recapitalisation of PSBs and
resolution of distressed assets under the Insolvency and Bankruptcy Code may improve the
business and investment environment, (v) global trade growth has accelerated, which should
encourage exports and reduce the drag from net exports, and (vi) the thrust on rural and
infrastructure sectors in the Union Budget 2018-19 could rejuvenate rural demand and also
encourage private investment.
Inflation, both CPI and WPI remain under control for entire FY2018. Average CPI was
3.6% in FY2018 compared to 4.5% in FY2017, while the corresponding figures for WPI are
2.9% and 1.8%, respectively. Assuming a normal monsoon and no major exogenous/policy
shocks, CPI is expected to remain in the range of 4.0-4.5% for FY2019 and even go below
3.5% for some months in Q3 FY2019. Major risks to the inflation outlook are crude oil and
other commodity prices and _scal slippage at both the central and state levels.
For the third consecutive year, Indian Meteorological Department (IMD) has forecasted
that monsoon would be "Normal" or around 97% of Long Period Average (LPA) with
an error of 5% and with a fair distribution of rainfall across major parts of country
As a result of normal rainfall during monsoon 2017 and various policy initiatives taken
by the Government, the country has witnessed record foodgrain production at 279.50 million
tonnes for FY2018, 1.6% higher than the previous record achieved in FY2017 (275.1
million tonnes). The production of rice, pulses and coarse cereals touched new
highs during the year, but wheat production declined.
Gross value added in the industrial sector at basic prices decelerated to 6.8% in
FY2018 from 9.8% in FY2017. The slowdown in FY2018 was due to a sharp deceleration in
mining and quarrying. In the mining sector, contraction was on account of slowdown in its
key constituents such as coal and natural gas production, and decline in crude oil output.
The growth of manufacturing, on the other hand, improved with the waning of the transient
effects of GST.
On the external front, the current account deficit (CAD) increased to 2% of GDP (US$
13.5 billion) in Q3 FY2018 from 1.4% of GDP (US$ 8.0 billion) a year ago. For FY2018, we
believe CAD would be around 1.8% of GDP compared to 0.7% of GDP in FY2017. This slight
increase in CAD during FY2018 is due to US$ 156.8 billion trade balance, which is at a
FY2018 remained an eventful year for the banking fraternity. Asset quality, resolution
of stressed assets and muted credit growth in H1 continued as major challenges for most
banks during the current year. Higher NPAs impacted interest income adversely and led to
elevated provisions, thus putting pressure on the Profitability of banks. Further, some
Public Sector Banks (PSBs) have been put under the Prompt Corrective Action (PCA)
framework of RBI, which puts restrictions on key areas viz. dividend payment, branch
After remaining depressed for nearly two years, the bank credit built upon the uptick
that started around June, 2017 and expanded in double digits from December, 2017. The
resurgence in credit growth was observed across bank groups, though the pace of growth
continues to vary among bank groups. The YoY growth rate of bank credit for ASCBs was 10%
as on 30th March, 2018. Credit extended by private sector banks is higher than
PSBs, while credit extended by foreign banks has returned to positive territory after a
long contraction. Credit to sectors is becoming broad-based, with off-take by industry
turning positive after a protracted period of contraction. Due to the continued stress in
other sectors, most of the banks made efforts to lend to retail sector, which registered
reasonably good growth, with most banks expanding their retail loan book. However, with
resolutions through National Companies Law Tribunal (NCLT) expected to gather momentum and
global growth and private investment in India beginning to pick up, green shoots of credit
demand have started appearing. On the other hand, the aggregate deposits growth (YoY)
continued to decline and is at 54-year low of 6.2%, due to the base effect and currency
withdrawal by public.
During the last quarter of FY2018, the bond yields continued to _rm up which hit
severely the banks' balance sheet, due to the mark-to-market losses incurred by the banks
in their investments. In the post-demonetisation period, banks have invested a huge amount
of money in Government bonds due to tepid credit growth. In Q3 FY2018 quarterly results,
most of the banks have reported a loss due to their higher provisioning against the
mark-to-market losses in investments in Government bonds. To ease the pressure, RBI
recently has advised the banks to do the mark-to-market loss provisioning in the next four
On a positive note, in the year, the Government took a significant step to capitalise
PSBs in a front-loaded manner, with a view to support credit growth and job creation. This
entails the mobilisation of capital to the tune of about Rs. 2.11 lakh crore over two
years, through budgetary provisions of Rs. 18,139 crore, recapitalisation bonds to the
Rs. 1.35 lakh crore, and the balance through raising of capital by banks from the
market while diluting non-Government equity (estimated potential Rs. 58,000 crore). The
other possibility is to raise funds through rights issue to maintain parity of holdings.
Going by the MoF (Ministry of Finance) estimates, the Rs. 1.35 lakh crore package seems
largely adequate. In FY2018, Government has notified Rs. 80,000 crore recapitalisation
bonds to capitalise 20
PSBs for meeting their regulatory capital requirement and growth needs.
State Bank of India has merged its five associate banks and Bharatiya Mahila Bank Ltd.
with itself from 1st April, 2017. This is the first such large scale
consolidation in the Indian Banking industry. With this merger, your Bank is ranked at the
54 position among the top 1,000 global banks, as per the global ranking by "The
Banker" in July 2017. This merger helped your Bank to reduce 1,805 branches and
rationalised 244 administrative offices, which saves around
Rs. 1,099 crore per annum. We believe that the long-term benefits of the merger will
significantly outweigh the near term challenges and the efficiencies generated through the
merger will help the Bank to sustain the mission of being an enduring value creator.
Meanwhile, under the Pradhan Mantri Jan Dhan Yojna (PMJDY), banks have opened 31.4
crore accounts with Rs. 79,012 crore deposits (around 6% of the total demand deposits of
the ASCBs) till 4th April, 2018 deposited in their accounts. Out of the 31.4
crore accounts, PSBs have opened 25.4 crore accounts, RRBs have opened 5.1 crore accounts,
whereas private sector banks (PrSBs) have opened only 0.9 crore accounts. This indicates
that PSBs have accepted the responsibility and have ful_lled their promises in a record
time. On a positive note, zero balance accounts under PMJDY have been continuously
declining from 76.8% in September, 2014 to around 20% now. PMJDY has also helped the
implementation of the Mudra Yojana with Rs. 5.28 lakh crore distributed to 11.96 crore
beneficiaries in the last 3-years. In an in-house study within your Bank, we have found
that there is a traction across Jan Dhan and Mudra accounts.
In regards to competition, while the new breed of Payment and Small Finance Banks,
which have started functioning, are still in the process of _ne tuning their
business models, the Fintech companies with disruptive technologies and having
capabilities to address specific pain-points of financial customers, such as
remittance, credit and savings, have emerged as a challenge to the banking system.
The coming years will be very challenging for the banking system as a whole. The
operating environment has become increasingly complex. Although, resolution of stressed
assets has progressed satisfactorily, the final outcome will take some more time to re_ect
in the P&L. This delay is mainly because new laws take some time to mature in
practice. However, the structural transformation of banks must move beyond the NPA
resolution and address other pressing issues, such as frauds, customer retention and
servicing, human resource, cyber security and governance.
The policy initiatives over the last four years have gathered momentum with far
reaching structural transformation in all sectors. GST is moving to the next phase with
the introduction of e-ways module. Infrastructure growth has notably picked in roads,
civil aviation and railways. Digitalisation will gather pace as evident from the Report of
the Taskforce on Artificial Intelligence. It is unlikely that banks will escape these
transformations. Digitalisation of banking process will continue during the next year
creating new improved service experience. With capital infusion, it is now up to the banks
to grab the opportunity and deploy technology in addressing some of the pressing issues
The external environment nevertheless has become uncertain, despite a positive outlook
on growth. Trade wars, which are a sign of renegotiation of the old order, have become
more acute. The situation will continue in the same direction in 2018. Thus, across the
world, banks have revisited their foreign business strategy in line with growing risks.
Such cautions prevails among Indian banks as well. The Government of India has advised
banks to rationalise their foreign branches. However, this does not constitute a blanket
withdrawal but a more realistic strategy in line with changing trade patterns of the
country. This rationalisation in foreign business will therefore continue.
The coming year will be the last year after which general elections are due. However,
we do not expect that policy direction will markedly turn populist. The _scal and monetary
conditions will continue to remain stable even if there are momentary aberrations. But the
challenge will lie in taking a decision amid growing uncertainty. Overall the NPA
resolution is in sight and the time is opportune for tough and strategic decision making.
II. FINANCIAL PERFORMANCE
ACQUISITION OF ERSTWHILE DOMESTIC BANKING SUBSIDIARIES (E-DBS) & BHARATIYA MAHILA
Your Bank has acquired five domestic banking subsidiaries (DBS) of SBI; namely (i)
State Bank of Bikaner & Jaipur (SBBJ), (ii) State Bank of Mysore (SBM), (iii) State
Bank of Travancore (SBT), (iv) State Bank of Patiala (SBP), (v) State Bank of Hyderabad
(SBH); and Bharatiya Mahila Bank Limited (BMBL) with effect from 01st April,
2017. The merger of DBS & BMBL with SBI, has been accounted under the pooling of
interest' method as per Accounting Standard 14 (AS 14), "Accounting for
amalgamation" and the approved Scheme of Acquisition. Pursuant thereto, all assets
and liabilities of the transferor Banks have been recorded in the books of SBI at their
existing carrying amounts as on effective date. The net difference between share capital
of transferor banks of e-DBS & BMBL and corresponding investments by SBI and cash in
lieu of fractional entitlement of shares have been transferred to Capital Reserve.
|The total assets taken over are as under:
||( Rs. in crore)
|Cash & balances with RBI
|Balances with Banks & Money at Call & Short Notice
Since the figures of the current period include the results of the branches of these
Banks, the figures of the previous period are strictly not comparable.
ASSETS AND LIABILITIES
The total assets of your Bank have increased by 27.67% from Rs. 27,05,966.30 crore at
the end of March 2017 to Rs. 34,54,752.00 crore as at the end of March 2018. During the
period, the loan portfolio increased by 23.16% from Rs. 15,71,078.38 crore to Rs.
19,34,880.19 crore. Investments increased by 38.51% from Rs. 7,65,989.63 crore to Rs.
10,60,986.71 crore as at the end of March 2018. A major portion of the investment was in
the domestic market in government securities.
Your Bank's aggregate liabilities (excluding capital and reserves) rose by 28.52% from
Rs. 25,17,680.24 crore as on 31st March, 2017 to Rs. 32,35,623.44 crore as on
31st March 2018. The deposits rose by 32.36% and stood at Rs. 27,06,343.28
crore as on 31st March 2018 against Rs. 20,44,751.39 crore as on 31st
March 2017. The borrowings also increased by 13.99% from Rs. 3,17,693.66 crore, at the end
of March 2017 to Rs. 3,62,142.07 crore as at the end of March 2018.
NET INTEREST INCOME
Net interest income increased by 21.01% from Rs. 61,859.74 crore in FY2017 to Rs.
74,853.71 crore in FY2018. Total interest income has increased from Rs. 1,75,518.24 crore
in FY2017 to Rs. 2,20,499.31 crore in FY2018 registering a growth of 25.63%. Total
interest expenses have increased from Rs. 1,13,658.50 crore in FY2017 to Rs. 1,45,645.60
crore in FY2018. Interest expenses on deposits during FY2018 recorded an increase of
28.53%, compared to the previous year.
NON INTEREST INCOME AND EXPENSES
Non-interest income increased by 25.77% to Rs. 44,600.69 crore in FY2018, as against
Rs. 35,460.93 crore in FY2017. During the year, your Bank received an income of Rs. 448.52
crore ( Rs. 688.35 crore in FY2017) by way of dividends from subsidiaries and joint
ventures in India and abroad, and Rs. 13,423.35 crore ( Rs. 10,749.62 crore in FY2017) by
way of Profit on sale of investments, an increase of 24.87%. Cost to Income ratio is
50.18% in FY2018 as compared to 49.54% in FY2017.
Your Bank registered a growth of 17.04% in Operating Profit in the current financial
year. The Operating Profit of your Bank for FY2018 was at Rs. 59,510.95 crore as compared
to Rs. 50,847.90 crore in FY2017. Your Bank posted a Net Loss of Rs. 6,547.45 crore for
FY2018, as compared to Profit of Rs. 10,484.10 crore in FY2017 due to higher provisioning
requirements on NPAs, MTM losses in HFT and AFS portfolio, additional employee benefits
PROVISIONS & CONTINGENCIES
Major provisions made in FY2018 were as under:
Rs. 70,680.24 crore for non-performing assets (as against Rs. 32,246.69 crore in
FY2017), write back of Rs. 3,603.66 crore towards Standard Assets (as against provision of
Rs. 2,499.64 crore in FY2017), Rs. 8,087.57 crore towards Investments Depreciation (as
against Rs. 298.39 crore in FY2017).
RESERVE & SURPLUS
Since the Bank has incurred loss in FY2018, no amount (as against Rs. 3,145.23
crore in FY2017) has been transferred to Statutory Reserves. An amount of Rs. 3,288.88
crore (as against Rs. 1,493.39 crore in FY2017) has been transferred to Capital Reserves.
An amount of Rs. 1,165.14 crore (as against Rs. 143.69 crore in FY2017) has been
transferred from Investment reserve to Revenue and other Reserves and Rs. 192.32 crore
from Revaluation Reserve to General Reserve.
REVALUATION OF FIXED ASSETS
Your bank has reversed the effect of revaluation amounting to Rs. 11,210.94 crore made
in earlier periods in the value of certain leasehold properties, which has resulted in
write back of depreciation charged in previous year amounting to Rs. 193.24 crore.
Consequential effect on capital adequacy ratio arising from the above has been made in the
results for the year ended March, 2018.
PROGRESS ON IMPLEMENTATION OF IND AS
RBI, in its press release dated 5th April, 2018, has deferred implementation
of Ind AS by one year till 1st April, 2019. Earlier, RBI had issued a
road map for implementation of Ind AS for Banks in India for accounting periods beginning
from 1st April, 2018. A Steering Committee headed by Managing Director (Risk,
IT & Subsidiaries) is monitoring the progress in implementation of Ind AS in the Bank
to ensure a smooth transition to Ind AS as per the time schedule.
III. CORE OPERATIONS
1. RETAIL & DIGITAL BANKING GROUP
The Retail & Digital Banking Group is the largest business vertical of your Bank,
anchoring 96% of total Domestic Deposits, and 57.53% of total Domestic Advances, as of 31st
March, 2018. The Group comprises seven strategic business units and is the largest in
terms of its branch network and human resources.
Retail Banking is playing an increasing role in customer acquisition and CASA growth.
Your Bank continues to see a strong momentum in the addition of retail deposit customers
and consequently, a steady growth in the retail deposits base. Simultaneously, to meet the
aspirations of this growing customer base, retail assets are being strategically
positioned with a view to occupying a much larger proportion of total advances. Within the
retail portfolio, Home and Auto loans are the major contributors. Your Bank is also the
largest dispenser of education loans, which demonstrates its un_inching commitment to
serve the society at large.
A steady stream of technology driven innovations necessitated by changing customer
preferences are transforming the retail banking landscape. Your Bank has a multi-channel
delivery model, which allows it to offer its customers a choice to carry out transactions
through any channel, at any time and at any place. In FY2018, your Bank increased
its offerings across various channels digital, mobile, internet, social media, in
addition to branches, ATMs and Customer Service Points.
With collective efforts across functions, especially operational level, your Bank has
streamlined a number of key issues surrounding the Bank. Amidst heightened concern on
future regulatory requirements, cost of funds, fast changing consumer preferences,
intensifying competition and Profitability pressure, your Bank has made a road map towards
Profitability-oriented performance management. As a way forward to achieve this, your Bank
has introduced Return on Risk Weighted Assets (RoRWA) budgeting including bench marking
With a view to increase the Profitability and Return on Assets (ROA), curtailment of
overheads has always been the prime focus of your Bank. With this objective of containing
costs, especially in the post-merger scenario, your Bank has conducted various audits like
Space Audit, Energy Audit, Telephone Audit and Internet Audit, to name a few, in erstwhile
Associate Bank (e-ABs') branches.
Your Bank accords highest priority towards creating an environment of increased risk
awareness at all levels. It also aims at constantly safeguarding the appropriate security
measures, including cyber security measures, to ensure avoidance or mitigation of various
risks. Your Bank is equipped with a Disaster Recovery/Business Continuity Plan (BCP)
across all branches and offices to render uninterrupted services in the event of any
possible business disruption.
A. PERSONAL BANKING
The significant transformation of the banking industry in India is clearly evident from
the changes that have occurred in the financial market. Disruptive innovations in the
technological and digital banking products has opened up new vistas for banks to augment
revenues and enhance customer delight. This has entailed greater competition and
consequently greater risks. Cross-border _ows and entry of new products have significantly
impacted the domestic banking sector. This is paving the way for innovative product mix,
and also necessitates rapid changes in the process and operations to remain competitive.
These developments have facilitated greater choice for consumers, and subsequently
requires adoption of a strong and transparent, prudential, regulatory, supervisory,
technological and institutional framework in the financial sector at par
with international best practices.
Your Bank offers a wide range of services in the Personal Banking Segment as mentioned
1. Home Loans
Your Bank has the largest Home Loan portfolio in the country, with a market share of
32.13% as on 31st March 2018, amongst All Scheduled Commercial Banks (ASCBs).
Home Loan portfolio constituted 18% of the Whole Bank Advances as on 31st March
Total Home Loan and Home Loan Related portfolio as on 31st March 2018 stood
at Rs. 3,41,081 crore.
During the current financial year, there were internal challenges with the merger of
five Associate Banks and Bharatiya Mahila Bank Ltd. with your Bank. Further, slowdown in
project launches, due to the teething problems in implementation of RERA, impacted
business during the first half of the year. Your Bank undertook initiatives to streamline
the operations post merger, and the growth revived back in second half of the year despite
slow down in the Home Loan market. Various initiatives were taken up during the year to
provide superior experience to a home buyer and maintain its position of the most
preferred Home Loan provider. Some of the key initiatives undertaken during the year are
To meet the customer expectations of better and faster delivery, your Bank undertook:
Home Loan Customer Connect Programme, through which the Bank reached out to
over 1 lakh Home Loan Customers across the country, to thank them for their continued
patronage and to offer after-sales services.
Assured Turn-Around-Time Drive, resulted in reduction of average turn around
time (TAT) of Home Loan Sanction to 9 days for the month of March 2018. This TAT is
comparable to the best in the industry.
Increased number of feet-on-street to provide door step service at more than
The rise in internet penetration and faster adoption of internet has necessitated easy
access to information at the touch of customers' _ngertips. To ful_l these needs, your
Bank launched two websites this financial year:
SBI Home Loans website (https://homeloans.sbi): It is an exclusive
website for Home Loans which apprise customers with instant information regarding Bank's
home loan products. It also provides customers with pre and post sales services, including
Application for Disbursement, Statement of Accounts, Next Instalment Due Date and Interest
Rate History, among others.
SBI Realty Website (www.sbirealty. in): This website showcases your Bank's
approved projects across India to prospective home buyers. It helps to bring together
developers and buyers on a single platform, giving buyers the access to the deals on SBI
approved projects. Affordable Housing is a thrust area of the Government to bridge the
huge demand-supply gap of houses in India. Your Bank has been working in tandem to ful_l
the mission of "Housing for All" by 2022, by facilitating affordable housing to
home buyers. Few initiatives in this regard are as follows:
The launch of "SBI Grih Nirman Affordable Housing Project Finance
Scheme" with attractive features to tap the emerging potential for financing
affordable Housing Projects and is especially geared towards first-time home buyers.
Partnered with CREDAI in an event where 375 affordable housing projects were
launched by builders across India.
Sanctioned 37,007 home loans under PMAY scheme, aggregating to Rs. 7,997
crore during the financial year.
Your Bank is helping upgrade the living standards of its customers by providing auto
loans and making owning a car affordable. These auto loan products of your Bank are
available in many variants to suit the requirements of various customer segments -
salaried, businessmen, self-employed, professionals, senior citizens, NRIs, agriculturists
and existing borrowers, among others. Multi-channel sourcing of proposals and faster TAT
has made the auto loan products highly popular. This has helped your Bank to increase its
penetration in financing cars sold by various manufacturers such as Maruti, Hyundai, TATA
Motors, to name a few. The market share of your Bank in Car Loans has also gone up from
33.77% as on 31st March, 2017 to 34.97% as on 31st March,
3. Education Loans
Education is the key growth driver for any economy as it helps create skilled and
productive human resources who contribute to the development of the nation. Your Bank
takes pride in being the largest Education Loan provider in the country. It has helped
56,042 meritorious students during the financial year to realise their dreams by providing
financial assistance to the tune of Rs. 4,949 crore (out of which 35% of the loans have
been extended to girl students). In order to broaden the scope of Education Loans to book
quality business and enhance customer satisfaction as under, your Bank has taken various
Provided Education Loans to students of 147 top-rated, premier and reputed
institutions identified by the Bank at relaxed norms and concessional interest rates.
Door-step services are extended for sourcing high-value education loan
applications at select centres.
All courses and institutes approved by the Director General of Civil
Aviation (DGCA)/ Director General of Shipping (DGS) in the list of eligible courses
covered under Education Loans, have been included for financing by the Bank.
Bank's Loan Origination System has been integrated with Vidya Lakshmi Portal
(VLP) of Government of India to ensure better tracking of the loan applications and faster
sanctioning of loans.
4. Personal Loans
Personal Loan is one of the most popular products of your Bank and is amongst the
leaders in this segment. Your Bank has been aggressively catering to the needs of salaried
class (both government and private), pensioners and other customers. During FY2018, your
Bank has provided Personal Loans to 14 lakh customers amounting to Rs. 50,971
crore. The Bank's delinquency under this segment is one of the lowest in the industry.
This has been possible because of your Bank's utmost caution in selection of borrowers and
careful due diligence.
Your Bank has adopted various technological innovations mentioned as under, to serve
the digital-savvy customers:
Top-up Insta Credit loan to existing Xpress credit Personal Loan borrowers
through internet banking in an end to end digitised mode.
Pre-approved instant Personal Loans to the existing SB account holders of
the Bank through its YONO app.
Overdraft (OD) facility for select customers for purchases done through
online shopping websites like Flipkart.
Tatkal e-Personal Loans to cater to the needs of unserved and under-served
non-salaried customers, based on selected parameters.
Personal loan against security of Sovereign Gold Bonds of Government of
India on a pilot basis.
Personal loans to non-customers by evaluating credit history of the
applicants and Credit Information Reports (CIR) of various CICs.
5. NRI Business
As on 31st March, 2018 your Bank has a 33.34 lakh strong NRI customer base,
who are being catered to by 150 NRI intensive branches and 95 dedicated branches across
India. With an aim of providing all the NRI related service at a single point, your Bank
has set up a centralised back office. This major process innovation undertaken in NRI
services will handle the entire gamut of non-financial services including customer support
and query management. Your Bank has introduced a mobile app-based remittance facility to
the Indian diaspora residing in USA to remit the funds to India, with a cap of US$ 10,000.
SBI Intelligent Assistant (SIA) also known as Smart Chat Assistant evolved from the
cutting-edge technology, which efficiently answers queries, is also extended to NRIs.
6. Corporate and
Institutional Tie-ups for Salary Package
A dedicated Sales Architecture has been created in your Bank to facilitate opening of
salary accounts of Corporate Employee, Armed forces and other Central/ State Government
Employees. A dedicated marketing force named Key Accounts Manager (KAM) provides
personalised service along with a bouquet of products under Corporate Salary Package (CSP)
at the door step of the salaried customers. ThetotalSalaryaccountcustomerbasehas reached
124.07 lakh accounts registering a growth of 38% over FY2017. Under CSP, your Bank offers
Complimentary Accident (Death) Insurance cover up to Rs. 20 lakh. During the year, Bank
has settled 763 insurance claims amounting to
Rs. 37.77 crore.
7. Wealth Management Business - SBI EXCLUSiF
Your Bank's Wealth Management Services are now made available at 13 centres with 76
dedicated Wealth Hubs and 3 e-Wealth centres. An addition of 5 new centres and 55 new
wealth hubs were made during the financial year. The Wealth Hubs are managed by a
dedicated group of Relationship Managers and Investment Counsellors having in-depth
knowledge on markets and products along with senior internal staff in operational roles.
An open platform for investment with a state-of-the-art technology and right selling
approach based on Risk Pro_ling provides the best possible experience to your Bank
customers through the EXCLUSiF journey.
The e-Wealth Centres are equipped with on-Video and on-Phone transaction execution
facilities with extended Banking Hours. Your Bank's endeavour is to provide a best in
class holistic experience to Customers.
Your Bank also launched Wealth Management Services for Non-Resident Indians. Clients
residing in U.A.E., Bahrain, Qatar, Kuwait and Sultanate of Oman are eligible to onboard
as wealth customers. They can access services through e-Wealth Centres or through Wealth
Hub during their visit to India.
Your Bank also conducted Signature Annual Investment Conclaves' addressed by the
experts from Financial Industry and Markets on the prevalent market conditions and
investment opportunities. These Conclaves were well attended by a large number of existing
and prospective EXCLUSiF customers.
Your Bank's Wealth Management Business has shown an exponential growth in terms of
client acquisition and Net New Money generation during FY2018. The number of wealth
clients grew 528% during the year to reach 24,168 clients as on 31st March,
2018. The Net New Money grew by 566% to Rs. 1,998 crore and AUM increased by 390% to Rs.
Your Bank aspires to play a leading role in building the momentum for investments by
embracing the changes happening in the economy and enhancing wealth creation for esteemed
B. ANYTIME CHANNELS
||Kiosks (MFK + SSK)
||Cash Deposit Machines(CDMs), Recyclers
|31st March 2015
|31st March 2016
|31st March 2017
|31st March 2018*
1. ATMs/ Recyclers
Your Bank has one of the largest ATM networks in the world with 59,541 ATMs including
Cash Deposit Machines and Recyclers as on 31st March, 2018. During FY2018, your
Bank replaced 6,793 old ATMs and installed 3,883 new ATMs, with improved features and
equipped with the latest technology. Your Bank has so far installed 7,925 Recyclers and
Cash Deposit Machines (CDM) to provide 24x7 cash deposit and withdrawal facilities. Your
Bank has procured new software which will enrich the Customers' experience while using the
ATM machines. This new software will have Hi-resolution graphics screens for better user
interactions; one-to-one specific advice to customers of banking products; real time
integration with other digital channels; and a host of other new features.
Nearly, 80% of the financial transactions of your Bank are routed through Alternate
Channels. Your Bank has a 28.76% of market share (as per RBI Data) in ATM network in
India. SBI ATM network transacts 47.21% of the country's total ATM transactions. On an
average, over 1 crore transactions per day are routed through our ATM network.
Over 2,000 e-Corners (including 250 hi-tech SBI Intouch branches) have been set up
across the country where customers can avail entire gamut of services. To ensure and
protect customers' interest, coverage under electronic surveillance is being enhanced.
2. Swayam: Barcode based Passbook Printing Kiosks
Your Bank rolled out more than 14,000 SWAYAMs (Barcode based Passbook Printing Kiosks)
at its branches and e-lobbies/Intouch. Using these kiosks, customers can print their
passbooks on their own using barcode technology. On a monthly basis, more than 3.2 crore
transactions are recorded at these kiosks.
3. Green Channel Counter (GCC)
GCC is a POS terminal installed at counters in retail branches. Transaction through GCC
is done by swiping ATM/ Debit card followed by PIN validation. The services extended
through GCC are cash withdrawal, cash deposit, funds transfer within SBI. GCC per
transaction limit is up to Rs. 40,000 and daily withdrawal limit is a part of ATM
withdrawal limit (card variant wise). On an average 9.35 lakh transactions are being
routed through GCC per day.
4. Green Remit Card (GRC)
SBI Green Remit Card is a deposit card through which an individual can remit money in a
specified account of SBI. This is especially useful for the migrant depositors. Money can
be deposited using GRC through GCC, CDMs and Recyclers. The per transaction limit is of
Rs. 25,000 with a monthly cap of Rs. 1 lakh per remitter. On a daily average, over 1.50
lakh transactions are being routed through GRC.
5. Banking on Mobile
State Bank Anywhere Personal: Your Bank's Mobile Banking App for Retail customers,
offers a wide range of features apart from the general banking. The features include
Intra/Inter Bank funds transfer (NEFT/RTGS/IMPS/UPI), opening of _xed deposits/e-MOD
Accounts, add and manage beneficiaries, among others. Additional value added services such
as Aadhaar Linking, Voice Assisted Banking, myFitness, e-statement subscription/ download,
Stop/ Revoke cheque instructions and facility to submit Form 15G/ 15H online for TDS
exemption are also available.
State Bank Anywhere Saral: Your Bank's Mobile Banking App for proprietorship _rms
allows businesses to transfer funds across Banks, open and operate _xed deposit accounts,
make payment to EPFO, view account statements, schedule transactions and recharge/bill
payment, among others.
State Bank Anywhere Corporate: Your Bank's Mobile Banking App for Large Corporate
_rms with multiple users, allows business houses to operate accounts, transfer funds
through NEFT/RTGS, make bill payments/supplier payments, authorise e-cheques /e-STDR, open
and operate _xed deposit accounts, among others.
The Mobile Banking channel now has over 305 lakh registered users and has processed
transactions amounting to Rs. 6,00,000 crore in FY2018. Your Bank has also retained its
prime numero-uno position among Banks, both in terms of volume of transactions (21.20%)
and value of transactions (19.81%) as per the latest RBI Market Share Report.
6. SBI Pay (BHIM)
Your Bank's Unified Payments Interface based-app provides any registered/onboarded
user/merchant the convenience of transferring funds across different Bank accounts through
multiple modes (Virtual Payment Address, Bank Account Number, IFSC and scanning QR Code),
making it a truly inter-operable offering. 184 lakh users have registered on the SBI UPI
system and transactions amounting to Rs. 68,000 crore have been successfully processed
through the SBI UPI channel.
Large multinational corporations have leaped on to the digital payments bandwagon to
help India become a less cash economy. Your Bank has leveraged on this opportunity to
provide the latest digital payment offerings through various collaboration. Your Bank has
also partnered with Google India to offer PSP services to their UPI App Google Tez
under the UPI Multi-Bank Integration Model. Over 13 lakh Tez users have linked their Bank
accounts with their @ OKSBI handle offered by SBI to transact on the App. In addition,
debit card based payment services, P2P lending services
7. SBI Buddy
Your Bank's Mobile Wallet allows users to send and receive money. In addition, users
can also shop; book rail, movie or _ight tickets; use virtual debit card Buddy Card
to make payments; withdraw cash at SBI ATMs using the wallet and a lot more. Users can now
complete the full KYC check to enjoy enhanced limits on the wallet as well. Buddy has seen
remarkable growth and has reached a user base of 129 lakh as on 31st March,
2018. The wallet has facilitated over 496 lakh transactions to the tune of Rs. 1,505.79
crore as on 31st March, 2018.
Emergence of Fintech companies has made data the prime point for selectively and
effectively targeting customers. Increasingly, digital products from banks are being
promoted through social networking sites and online advertising. Your Bank has established
digital solutions that offer one of the best all-round omni-channel experience for its
On 24th November, 2017, State Bank of India launched India's first
comprehensive are also being planned among others. Users now have the convenience of
making bill payments, booking _ight tickets, recharging and ordering food through BHIM SBI
Your Bank has also brought digital payments to the masses to enable UPI payments for
over 37 lakh members of Self Help Groups under the Shri Kshetra Dharmasthala Rural
Development Programme (SKDRDP) in the state of Karnataka. This was launched in the
presence of Hon'ble Prime Minister of India on 29th October, 2017. digital
service platform "YONO", an acronym for You Only Need One'. An integrated
omni-channel digital platform, YONO offers banking and other financial products along with
access to India's largest B2C marketplace for its customers to meet their lifestyle needs
across 16 categories including Fashion & Lifestyle, Electronics, Education, Home
& Furnishing, Travel & Hospitality, Cab Booking & Car Rentals,
Entertainment, Food & Dining, Health & Personal Care and others. Your Bank has
partnered with 70+ top e-commerce players to provide customised offers and discounts to
its customers. With YONO, customers can:
Open an SBI bank account digitally in 4 minutes
Avail Pre-approved personal loan sans any paperwork in 4 clicks
Get overdraft facility against _xed deposit instantly online
Get one view of the banking and financial portfolio of SBI Group companies
Benefit from intelligent spend analyser
Utilise Chatbot SIA'
Create dreams to target and fund the dreams
Access B2C Marketplace
Open a new demat/trading account
Link trading/demat account
Apply for credit cards online
Link credit cards and pay credit card bills seamlessly
Avail insurance products online.
Performance highlights of YONO as on 31st March 2018
4.37 Million Application Downloads
1.36 Lakh Digital and Insta Savings Accounts opened
6.52 Lakh Funds Transfers executed
17,000+ Fixed Deposits opened
71,000+ Bill payments done
77,000+ SBI Credit Cards linked; 41,000 Card payments of Rs. 43 crore done;
33,000 new Card leads generated
41,000+ SBI Cap Sec portfolios linked; 9,000 new demat account leads
11,000+ SBI Life policies linked
2,400+ Pre-approved Personal Loans of Rs. 12 crore disbursed
9. Customer Experience Excellence Project (CEEP)
The Customer Experience Excellence Project CEEP has been rolled out at 5,364 branches
across the country which are equipped with Self Service machines as ATM, CDM/ Recycler,
SWAYAM for Passbook Printing, Electronic Cheque Drop Box and Internet enabled PCs. An
integrated Queue Management system (QMS) is in place at these branches to ensure that the
customers are serviced promptly without having to wait in queues at the counters. There is
a provision of separate token for Senior Citizens/ Disabled persons in QMS to give them
preferential service. A Customer Feedback Tab is provided at these branches to enable the
customers to give their feedback on the services of the branch. Real time monitoring and
Branch choreography are undertaken at these branches to give the customers an excellent
Your Bank's Mobile App "State Bank No Queue" enables customers to
self-generate e-tokens for availing Banking services at CEEP Branches. This App is
available on both Android and iOS phones and it helps in reducing waiting time for
customers at the branch. It also reduces crowding at a branch as the token is generated
before the customer reaches the branch. This helps customers to skip the queue and avail
banking services faster. As on 31st March, 2018, the App has registered more
than 23,66,000 (2.37 million) downloads. The usage of the App is increasing on daily
basis. The HNI customers are tagged as Priority Customers at these branches.
Your Bank has also undertaken Customer Service Feedback Survey at select CEEP branches
to assess the impact of the CEEP initiative on the quality of customer service. The
feedback thus received is being used to improve the customer service and facilities
available for the customers.
10. Digital Banking
Your Bank has always been a pioneer in innovating new concepts in Banking Sector. One
such step was setting up the high-tech, one of its kind, sbiINTOUCH branches, which has
brought in a new paradigm in banking. At present, your Bank has 262 sbiINTOUCH branches
equipped with state-of-the-art digital technology. These sbiINTOUCH branches cover more
than 148 districts across the country.
At the sbiINTOUCH branches, your Bank provides banking services such as the opening of
accounts and the printing of personalised Debit Cards in 15 minutes. This has been made
possible by revolutionary Touch Technology. Your Bank's strategy is to create a
Phygital' marketplace within these futuristic branches, to offer customers 1)
Banking through self- service kiosks and 2) Services of other SBI subsidiaries such
as Life Insurance, General Insurance, Mutual Funds, Credit Cards and online trading
through SBI Cap Securities. Financial counselling through hi-de_nition Audio Video
conferencing service is provided at select sbiINTOUCH branches, where customers can
interact with financial experts.
In August, 2017, your Bank has also launched, the facility of instant issuance of
personalised Photo Debit Card Quick Photo Debit Card' within five minutes to
Saving Bank (SB) account holder of any branch of SBI. Under the facility, an individual SB
account holder who has an account with SBI and has lost or damaged his debit card, can
visit any sbiINTOUCH Branch with his Aadhar Card and obtain Instant Photo Debit
Card, bearing his photograph, through Debit Card Printing Kiosk.
11. Cross Selling
Your Bank is the Corporate Agent of SBI Life Insurance Co. Ltd & SBI General
Insurance Co. Ltd. and has Distribution Agreement with SBI Mutual Fund, SBI Cards &
Payment Services Pvt. Ltd & SBI Cap Securities Limited for distributing their
products. Your Bank also distributes mutual fund products of UTI Mutual Fund, Tata Mutual
Fund, Franklin Templeton Mutual Fund, L&T Mutual Fund, ICICI Mutual Fund, and HDFC
Mutual Fund. In addition, all branches are authorised for opening pension accounts under
National Pension System.
Performance Highlights (Income)
||( Rs. in crore)
||% YoY change
*YTD Mar'17 figure inclusive of e ABs data - 776.61 (SBI) + 138.13 (eABs)
The key highlights for FY2018 are mentioned below:
SBI Mutual Fund became 2nd largest amongst Bank distributors in the Industry
with an AUM of more than Rs. 54,000 crore. Your Bank has become India's number one Bank
distributor in SIP with 14.6 lakh live SIPs. Net sales increased from Rs. 11,464 crore in
March, 2017 to Rs. 24,374 crore YTD March, 2018 reporting an increase of 113%.
Cards issued through Banca Channel crossed 10 lakh and sourcing has
increased from an average of 35% upto September, 2017 to 53% in March, 2018.
Your Bank received SKOCH Award
Platinum for its National Pension System Application and was ranked No. 1 in
Point of Presence (POP) under various log in day campaigns observed by PFRDA.
Under SBI Life, CIF grew to 46,180 in YTD March, 2018 as against 24,470 in
YTD March 2017, reporting an increase of 89%. The Home Loan Insurance penetration
increased from 45% to 58%.
Under SBI General, SP number has increased to 20,646 in YTD March, 2018 as
against 14,348 in YTD March, 2017, reported a growth of 44%. The number of Health
Insurance policies issued increased by 11% to 7.82 lakh and premium increased by 16% to
Rs. 179.45 crore over March, 2017. In FY2018, net Profit earned by SBI General Insurance
Co. stood at Rs. 380 crore out of which Rs. 170 crore seeding commission was earned from
Long Term Home (LTH) reinsurance.
12. Internet Banking and e-Commerce
YourBank'sInternetBankingServicebrings on board a seamless online experience hosting
diverse Banking offerings. Opening and operation of Fixed Deposits/ PPF accounts,
Intra/Inter Bank transfer of funds through NEFT/RTGS, submission of Form 15G/15H,
Nomination updation facility, foreign international remittances are among the many
functionalities, being offered. Some of the services/features launched during the year,
that have made Bank's digital platform more robust and customer-friendly, are access to
CIBIL score, Aadhaar linking with CIF, purchase of Sovereign Gold Bonds, SMS alerts in
Hindi, GSTN integration, submission of 15G/H Form through RINB portal, submission of
Financial Follow up Report
C. SMALL AND MEDIUM ENTERPRISES
Your Bank is pioneer and market leader in SME financing. With over one million
customers, the SME portfolio of
Rs. 2,69,875 crore, as on 31st March, 2018 accounts for nearly 13.17% of the
Bank's total advances.
Considering the important role being played by SMEs in the Indian economy in terms of
their contribution to manufacturing output, exports and employment generation, your Bank
has always held SME as an important segment.
Your Bank is committed to providing Simple and Innovative Financial Solutions. Your
Bank's approach in driving SME growth rests on the following three pillars:
a) Customer Convenience, b) Risk Mitigation, c) Technology based digital offerings.
1) Customer Convenience
With a view to building and sustaining the momentum for Transforming India, your Bank
has created largest number of touch points in terms of number of branches and other modes,
reaching out to public at large, which includes RMSEs (866), RMMEs (775), CSOs (900),
SMECs (89), RASMECs (81) and SME Intensive Branches (1,248).
With a view to enhancing Ease of Doing Business to the Small and Micro Enterprises,
your Bank modified its existing delivery model for Small & Medium Enterprises Center
(SMEC) and created Asset Management Teams (AMT) for providing end to end relationship with
the customers for small value loans up to Rs. 50 lakh. The SMECs have also been
strengthened in terms of manpower which has resulted in improvement in service.
Webbasedloanapplicationandtracking system: Your Bank is hosting an online loan
application and tracking facility for MSME borrowers on the Corporate Website www.sbi.co.in.
It is an Intranet-based Credit Proposal Tracking System called Lead Management system
(LMS), which allows customers to apply online loan request and receive an acknowledgement
in the form of application reference number. The data of customers is then automatically
forwarded (through concerned network in Circles) to relationship points for converting
these leads into business.
Participation in Business Conclaves/ Summits: Your Bank has been actively
participating in Business Conclaves and Summits to reach out to entrepreneurs and
understand and meet their requirements.
2) Risk Mitigation
Your Bank has been increasingly shifting focus towards Risk Mitigated Products, which
includes Supply Chain finance, Asset Backed Loans, Overdraft against Bank Deposits/Govt.
Securities, Bills Discounting facility and CGTMSE covered loans, among others.
Supply Chain Finance: Leveraging the state-of-the-art technology and branch
network, your Bank is further strengthening its relationship with the Corporate World and
has emerged as a major player in Supply Chain Finance.
During the _scal, your Bank entered into 49 new e-DFS (Electronic Dealer Finance
Scheme) and 8 new e-VFS (Electronic Vendor Finance Scheme) tie-ups covering 292 Industrial
Majors and 22,406 of their dealers and 12,512 vendors. The number of oil dealers (Petrol
Pumps) on e-DFS crossed 13,000 during the last _scal. There has been 19% YoY growth in e-DFS
Pradhan Mantri Mudra Yojana: In line with the initiatives of the Government of
India, your Bank has laid considerable emphasis on extending credit facilities to eligible
units under different variants of Pradhan Mantri Mudra Yojana and has disbursed
Rs. 28,556 crore for FY2018 under PMMY against a target of Rs. 28,300 crore.
Credit Flow to Micro and Small Enterprises under CGTMSE: Your Bank has been a
pioneer in supporting MSMEs and for Micro and Small business. Your Bank is extending
collateral free lending up to Rs. 2 crore under guarantee of CGTMSE. SBI has a portfolio
of Rs. 12,549 crore under CGTMSE as on 31st March, 2018.
SME ASSIST: Introduction of GST is a transformational move by the Government of
India. Your Bank conducted GST workshops in 91 modules/centers as a part of knowledge
dissemination initiative on GST, covering 4,087 SME borrowers. Town Hall Meetings were
also conducted at all the District Headquarters to bring awareness about GST among MSMEs.
Your Bank rolled out a new Product - SME ASSIST during the _scal to finance pending
input credit claims under GST. As on 31st March, 2018, your Bank has funded 431
units with a total portfolio of
Rs. 228 crore.
3) Digital offerings
Your Bank is leveraging technology in every aspect of the value proposition from
sourcing business, designing products, streamlining process, improving delivery to
Your Bank has taken several initiatives to build SME portfolio in a risk mitigated
manner and has brought about significant changes in (i) Product suite, (ii) Process (iii)
Ecosystem Financing (Project Shikhar) has been introduced by your Bank to take
advantage of growing e-commerce footprint in the economy.
Cluster Based Funding: Cluster based approach enables your Bank to deal with
well-de_ned and recognised groups and to tap the growth potential. Since the units belong
to a cluster with same kind of activity, it helps in assessing their needs and monitor the
overall portfolio. As on 31st March, 2018, your Bank has helped 441 units under
Cluster Finance with total portfolio of Rs. 450 crore.
Warehouse Receipt Finance: Your Bank has introduced Warehouse Receipt Financing
scheme (WHR) to extend finance to traders/owners of goods/ manufacturers for own
processing against Warehouse Receipts. Warehouse receipt is issued by Collateral Managers
with whom your Bank has a tie-up (presently NBHC, NCML, Star Agri, Origo). Further, WHR
issued by Central Warehousing Corporation (CWC)/State Warehousing Corporation (SWC) is
also eligible for WHR finance. The WHR portfolio as on 31st March, 2018 stands
at Rs. 5,795 crore.
Project Vivek, heralded paradigm shift in your Bank's appraisal system from traditional
Balance Sheet based funding to a more objective appraisal system of leveraging cash _ow
and other information sources. It is a promising initiative taken and launched by your
Bank for new Credit Underwriting Engine (CUE) for the SME segment, which brings in
objectivity for better risk assessment. It also reduces Turn Around Time (TAT) resulting
in better customer experience. As on 31st March, 2018 , a total 13,713
proposals have been processed under Project Vivek.
Trade Receivables Discounting System (TReDS): TReDS have been set up for _ow of
finance to MSMEs. Your Bank was first among all PSBs to register on the TReDS platform
RXIL and M1xchange. Your Bank has been actively participating in the online biddings on
the platform and has been offering very competitive rates to the benefit of MSMEs.
Loan Origination Software (LOS-SME) and Loan Life-Cycle Management System (LLMS): With
a view to adopt the uniform standards of credit dispensation and for ensuring quality and
preserving corporate memory, LOS & LLMS have been introduced for small and high value
Digital Inspection Application (DIA-SME): This is a Tab and Mobile based
application for recording inspection of SME units as a process of digitalisation of
pre-sanction/ post sanction processes of SME units. Your Bank also records collateral
security, location of the properties and place of business with photograph and
geo-coordinates through this Digital application.
D. RURAL BANKING
1. Agri Business
Against the background of the Union Government's goal of doubling farmers' income by
2022, Agriculture and allied activities have got greater focus during the year in your
Bank's lending activity. Your Bank serves about 1.35 crore farmer families all over India.
It surpassed the Agri credit _ow target set by the Government of India during FY2018, as
it has done in the past. This is depicted in the table below:
Flow of Credit to Agriculture Trend
||( Rs. in crore)
In order to ease the _ow of credit for Agriculture, your Bank has now raised the limit
for renewal of mortgage-free crop loans from Rs. 1 lakh to Rs. 1.5 lakh. It has also
introduced a scheme for financing of dairy units under the Mudra scheme with liberalised
terms for loans up to
Rs. 10 lakh, as allied agricultural activity is a mean of increasing farmers' income.
A new product which is designed to meet the general-purpose needs of farmers against
the collateral of property called the Asset Backed Agri Loan (ABAL), picked up momentum
during the year and the growth under this product was about 200%, albeit on a lower base.
This product has been accepted by customers because of the _exibility it offers.
Your Bank is de-risking its Agri portfolio and supporting farmers at the same time by
entering into local level and national level tie-ups with Agri Corporates, wherein the
supply chain will ensure cash _ows for timely renewal of loan and better incomes for the
farmers. Your Bank is also lending under a Cluster-based approach to tap opportunities
that revolve around areas and centres which have traditionally been known for activities
like shrimp farming, dairy, poultry and higher value horticulture crops like pineapple and
Recognising the contribution of rural India to the nation's economic growth, your Bank
has been striving to meet the financial needs of the rural segment through various new
channels and services. A pilot project on a hub-and-spoke model for improving turn-around
time and the quality of credit appraisals in the Rural and Semi-urban branches was rolled
out in over 80 Regions across the country.
As widely reported, the Agriculture sector saw a number of developments with a few
States announcing waiver of farm loans in response to demands by the farmers. Your Bank on
its own announced two Rinn Samadhan schemes, covering farm sector loans and the internal
targets set under both the schemes were achieved.
Keeping in view the large number of customers served by your Bank, it took the lead and
organised mass contact programmes on six occasions during the year. Under this initiative,
on a pre-_xed day, all Rural and Semi-urban branches of your Bank held informal meetings
with farmers to improve customer connect and spread awareness about the Bank's and
Government's schemes. It is estimated that at least 1.5 million farmers attended these
Other important initiatives taken during the year included issuance of 71.66 lakh
KCC-ATM-RuPay Cards to Kisan Credit Card (KCC) borrowers for ease and operational
convenience. KCC RuPay Cards work seamlessly with ATMs and PoS machines, enabling farmers
to purchase their day-today farm requirements on 24x7 basis.
2. Financial Inclusion (FI)
Your Bank realises the role it must play as the largest bank in the country in
practicing and promoting financial inclusion activities. The spread of digital banking
channels and expansion of Business Correspondents (BC) networks are giving your Bank the
impetus to further grow its financial inclusion activities. Thus, to achieve inclusive
development and growth, your Bank has worked out several strategies and leveraged
technology to expand financial services to the door steps of people with the purpose of
bringing the excluded under the ambit of formal banking system.
Your Bank has 58,274 operating Business Correspondents and over 22,400 branches across
the country to offer banking services. The Business Correspondent channel has recorded
31.21 crore transactions amounting to
Rs. 1,24,930 crore in FY2018, translating to around 1-1.5 million transactions per day.
The Business Correspondent channel provides customers with access to various banking
products and services, reducing the foot-falls in the branches.
Under the Pradhan Mantri Jan Dhan Yojana (PMJDY), your Bank has paved the way for
universal financial access by being a pioneer in implementing the programme. Your Bank has
opened more than 10 crore accounts up to 31st March, 2018 and issued
6.62 crore RuPay debit cards to eligible customers. These initiatives taken under
financial inclusion are a part of key economic policy agenda of the Government. Over the
last decade, your Bank has a major share in providing access to banking services to the
excluded in the ecosystem.
a. Imparting Financial Literacy
With the objective of imparting financial literacy and facilitating effective use of
financial services, your Bank has set up 336 Financial Literacy Centres (FLCs) across the
country. During FY2018, a total of 23,962 financial literacy camps were conducted by these
FLCs across the country. As part of the pilot project being implemented by RBI, your Bank
has also set up 15 centres for Financial Literacy at Block level, 5 each in the state of
Maharashtra, Chhattisgarh and Telangana in association with NGOs identified by RBI.
b. Rural Self Employment Training Institutes (RSETIs)
Rural Self Employment Training Institutes (RSETIs) play an important role in skill
development by imparting comprehensive quality training programme to rural youth. It also
facilitates them in setting up of micro enterprises. Your Bank has set up 151 RSETIs
spread across 27 States and one Union Territory.
Your Bank RSETIs have trained more than 1 lakh rural youth during FY2018. Over 63% of
the candidates trained are women and 83% of the candidates trained belong to non-general
categories (SC/ST/OBC/ Minorities). More than 6 lakh candidates have been trained by
SBI-RSETIs over a period of seven years of which 67% have been settled, thus building
momentum for transforming rural India.
E. OTHER NEW BUSINESS INITIATIVES
1. Payment Solution Vertical
Banking system is witnessing new challenges in its traditional business domain from new
digitally enabled entrants. Payment systems, of late, have become the most sought after
aspect of banking business on account of the growing penetration of smart phones,
e-commerce and launch of a number of innovative products/mobile apps.
Debit Cards: With approximately 26 crore actively used Debit Cards as on 31st
March, 2018, your Bank continues to lead in Debit Card issuance in the country. SBI has a
market share of 32.35% in terms of Debit Card penetration as on 31st March,
2018. In line with the approach of moving towards a digital economy, your Bank has adopted
a focused strategy on shifting the usage of Debit Cards by customers from ATM (for cash
withdrawals) to PoS/eCom websites by executing regular promotional/activation campaigns in
collaboration with leading e-comm and retailers. Your Bank has successfully launched
various innovations and functionalities around Debit Cards like Contactless Debit Cards,
Bharat QR, Samsung Pay and Visa Checkout.
In order to increase digital participation with customers, your Bank has also tied up
with various institutions like Mumbai Metro, Chennai Metro, IIM Ahmedabad, College of
Engineering - Pune and others for launching co-branded Debit Cards/ combo Cards.
Such consistent initiatives towards digitising payment transactions, not only reduce
cost of transactions but also help in reducing carbon footprint through lesser use of
paper. As a result of these initiatives, your Bank has improved its market share in Debit
Card spends from 29.33% as on 31st March, 2017 to 30.40% as on 31st
State Bank Foreign Travel Cards: State Bank Foreign Travel Cards (SBFTC) are
available on the VISA platform, in eight Foreign currencies namely Japanese Yen, Canadian
Dollar, Australian Dollar, Saudi Riyal, Singapore Dollar, US Dollar, Euro and British
Pound, providing safety, security and convenience to overseas travellers. SBFTC is also
issued as Multicurrency card on MasterCard platform. Initially, it was launched in four
currencies viz. US$, GBP, Euro and SGD. During the year, three new currencies viz. AUD,
CAD and AED have been added. Your Bank is also aggressively promoting tie-ups with FFMCs
(Full Fledged Money Changers).
Rupee Prepaid Cards: Prepaid card usage has been growing for purchase of goods and
services as well as for funds transfer in India. Your Bank has issued PPIs for Rs. 950.31
crore during FY2018 registering a growth of 122.90% over the previous year.
Enterprise Wide Loyalty Program - State Bank Rewardz: To encourage and maximise
digital adoption amongst SBI customers and also to attract more customers on SBI platform,
your Bank launched Loyalty Rewardz program across seven channels during 2015, which is
being extended to 4 more channels including YONO. This will encourage repetitive usage of
digital transactions thereby creating digital habit amongst customers. State Bank Rewardz
has also been implemented through mobile app, which can be downloaded from the Google Play
Store and from App Store in iOS
Foray into digitalisation of Mass Transit:
The advent in digital technology along with rapid urbanisation and infrastructure
development, has given a significant boost to the urban public transportation in India.
With a vision to Be the Bank of Choice for a Transforming India', your Bank has
taken the following steps on its journey of transforming the transit space in India:
(a) Your Bank has successfully implemented the ambitious project of NHAI - National
Electronic Toll Collection (NETC). Your Bank is issuing SBI FASTag; working on Radio
Frequency Identification technology (RFID) and enables the Customers to pay the toll
electronically across all the National Highway Toll plazas. Through SBI FASTag, customers
can pay their toll electronically and can top up/recharge their SBI FASTag wallet online
through a dedicated portal by using various modes like Debit Cards, Credit Cards, Internet
Banking of any Bank. The customer can also view the history of transactions of their
vehicle. Your Bank has issued more than 2.7 lakh tags to customers. Toll transactions
through the SBI FASTag has crossed a mark of 68 lakh and total transaction amount has
Rs. 140 crore level in FY2018.
(b) With the aim of digitising micro-payments rapidly, your Bank has participated in
various metro and transit projects. Your Bank has been awarded the Nagpur and Noida metro
project for implementation of open loop Automatic Fare Collection System based on the
qSPARC technology on the RuPay platform. Your Bank has designed SARVATRA Card in line with
the National Common Mobility Card (NCMC) guidelines as envisioned by Ministry of Urban
Development (MoUD). This card offers features of a metro travel card on RuPay Prepaid
Card, wherein transactions can be conducted of_ine. Apart from payment of fares in the
multi modal transit, this card offers extended usage for retail payments as well as
Infrastructure (Merchant Acquiring Businesses vertical)
Your Bank is playing effective role in building momentum for transforming India through
digitalisation of the economy. In sync with the focus of the Government of India to create
a less-cash economy, your Bank has expanded digital payment acceptance infrastructure and
rolled out new payment acceptance solutions.
Your Bank continues to be the top acquirer in the country in terms of number of
terminals with a market share of 20.20% (as per the latest available RBI data as on 28th
February, 2018). During the year, your Bank introduced two new digital payment acceptance
products - Bharat QR and BHIM-Aadhhar-SBI; and on-boarded 2.02 lakh and 4.97 lakh
merchants respectively on these platforms. PoS deployed by your Bank has grown from 5.09
lakh as on 31st March, 2017 to 6.10 lakh as on 31st March, 2018. In
total, the number of merchant payment acceptance touch points crossed 1.96 million as on
31st March, 2018.
The value of acquiring transactions has reached almost Rs. 1 trillion with 68% increase
on Y-o-Y basis. Your Bank has been successful in digitising sale transactions of retail
outlets of oil marketing companies by installing 34,000+ PoS terminals at more than 20,000
In order to increase penetration of digital merchant payment acceptance infrastructure
in semi-urban and rural areas, your Bank has focused on tier V and tier VI centers. As on
31st March, 2018, about 31% of total PoS terminals deployed are in rural and
semi urban areas.
In addition to offering basic acquiring services, your Bank is also providing Value
Added Services such as:
DCC-Dynamic Currency Conversion
Cash@POS facility for cash dispensation to debit card holders
State Bank of India has collaborated with major Corporates and also with government
departments in digitising their operations from cash to digital mode. Your Bank has
created a robust payment infrastructure for facilitating digital acceptance, which
involved customisation and integration of its systems with those of corporates and
Government departments to ensure seamless _ow of digital transactions. Some of the notable
integrations have been with the systems of Indian Railways, India Posts and e-GRAS for the
Government of Haryana.
F. GOVERNMENT BUSINESS
Your Bank has traditionally been the preferred and accredited Banker to major Central
Government Ministries/ Departments. Commanding the market in Government Business, your
Bank has a share of more than 80% in Government Commission. Your Bank is at the forefront
in developing e-Solutions for both Central and State Government undertakings. This has
facilitated transition of Government Business to the online mode, resulting in greater
efficiency and transparency. Your Bank is an active stakeholder in the Government's latest
initiatives such as the Government e-Marketplace and is continuously engaged in developing
customised technology solutions such as e-Tendering, e-BG and e-Trade to keep pace with
the Government's digital initiatives.
||( Rs. in crore)
With a view to facilitate e-Governance, digitalisation and bringing in more efficiency
and transparency, the following initiatives were implemented during the year:
1. GSTN: Your Bank has been designated as the sole banker for refunds of GST
with a 30% market share in GST collections.
2. GeM (Govt. e-Marketplace): A MoU has been signed with GeM for financial
integration of payments to suppliers to facilitate procurement of goods and services
through GeM portal.
3. Indian Railways: Your Bank was awarded the contract to open Inland LCs
against indigenous contracts of supplies and works of Indian Railways for an estimated
Rs. 50, 000 crore per annum.
4. Direct Benefit Transfer (DBT/L):
During FY2018, over 28.26 crore transactions were successfully processed through DBT
amounting to Rs. 1,24,881 crore. Your Bank is the sole banker for processing Direct
Benefit Transfer of LPG (DBTL). Over 114.39 crore transactions amounting to Rs. 23,076
crore were processed through DBTL.
5. GCCS: Your Bank sponsored GCCS 2017 (5th Annual Global Conference on
Cyber Space) as a Platinum Sponsor which attracted delegates from over 100 countries.
6. Bharat ke Veer Portal (BKV): Your Bank has proudly associated with the
BKV portal of Ministry of Home Affairs by enabling payment gateway to collect donations
for NoK (Next of Kin) of Martyrs of 8 Para Military Forces.
7. Migration of Salary/Vendor payments to e-Mode: Migrated salary/vendor
payments of Lok Sabha, 80 CDDOs (Cheque Drawing & Disbursing Officers) of MoUD
(Ministry of Urban Development); and made salary payments of 1.84 lakh Indian Air Force
8. PoS (Point of Sale) terminals: Your Bank has provided PoS terminals to
the Indian Railways, Post Offices, Passport Seva Kendras and Ministry of External Affairs.
9. BHIM UPI: Solution implemented for Passenger Reservation System (PRS) of
Indian Railways (Railway reservation counters across India).
10. e-MRO (Military Receivables Order):
All 31 CDAs/PCDAs (Controller/ Principal Controller of Defence Accounts) have been
11. e-BG (Bank Guarantee): Your Bank is the first to integrate with Government
e-Marketplace (GeM) for online con_rmation of BGs/PBGs for procurement.
12. e-Tendering: MoU (Memorandum of Understanding) has been signed with Uttar
Pradesh Government for e-Tendering solution of State Government Departments and Autonomous
13. RFID FASTag: MoU signed with Odisha State Transport Corporation to provide SBI
FASTag facility for their 470+ buses. A MoU was also signed with South Bengal State
Transport Corporation to provide SBI FASTag facility to their 750+ buses.
14. e-Trade: PCDA New Delhi has been on-boarded for online opening of LCs. More
than 90% of LCs are being routed through the portal of SBI.
15. Pension Payments: Your Bank has been administering pension payment to over
53.23 lakh pensioners through the 16 CPPCs (Centralised Pension Processing Centres). The
total pension amount disbursed has exceeded Rs. 1,33,475 crore during FY2018. Your Bank
has added 2.81 lakh new pension accounts during the year. A number of Pensioner Connect
Programmes were held across the country.
16. Small Savings Schemes: Your Bank services more than 71.58 lakh PPF and 11.64
lakh Sukanya Samriddhi Accounts, which is the highest among all authorised banks. Over
5.31 lakh new PPF accounts and 3.66 lakh new SSA Accounts were opened during FY2018.
G. EFFICIENCY AND COST CONTROL
Your Bank has set up Insurance Cell for Insurance of Bank's assets and other risks in
order to reduce requirement of Capital under Advanced Measurement Approach (AMA) of
Basel-II framework. It has enabled your Bank in procuring Insurance Cover with better
wordings/cover in Insurance Policy at competitive pricing. This has also facilitated
timely lodgment of claims and improved claim settlement. Request for Quotes/Bids are
issued only to those Insurance Companies which have a record of settlement of at least 50%
of claims in the last three years.
Your Bank has also introduced an innovative, dedicated customer care centre SBI
CARE', a customer facing out_t to cater to customer queries and their non-financial
banking requirements with opening centres in Mumbai, Hyderabad, Delhi and Chandigarh. SBI
CARE centre will handle Account related enquiry, enquiry on all products, updation of KYC,
Aadhaar, Mobile, PAN numbers, Cheque Book requests, Account Statement, ATM Card request,
ATM Pin generation, Account opening through Digital platform, lodging of complaints etc.,
and will offer delightful interactive experience to your Bank's customers/ public.
Outsourcing Model of Stationery Management Project is currently rolled out in 9
Circles. The Project was implemented to reduce costs incurred on premises, storage,
obsolescence of stationery items, manpower, overheads and transportation costs etc. Your
Bank is in the process of rolling out the Project in all Circles in the near future.
Under Scanning and Digitalisation of post LCPC AOFs, out of total stock of 15.89 crore
AOFs held in LCPCs as on 31.03.18, your Bank has scanned 15.74 crore AOFs (99.05%
completion), images of such 14.73 crore AOFs have been migrated to Bank's centralised
(EDMS) server. This will help facilitate digital storage and retrieval of AOFs data for
As a result of these initiatives, Branch premises will be decongested and have more
space and better look to offer to the customers for their convenience and more ful_lling
2. CORPORATE BANKING GROUP
The Wholesale Banking business ecosystem at your Bank focuses on servicing corporate
customers, through customised financial solutions, and is comprised of several teams
focused on specific areas to facilitate specialisation and customised product offerings to
your Bank's clients.
A. CORPORATE BANKING
The Corporate Accounts Group (CAG), provides corporate banking services to large
corporates and institutions, including state-owned enterprises and caters to customers
with total credit exposure in excess of Rs. 5 billion.
It offers fund-based and non-fund-based products, fee and commission-based products and
services, deposits, foreign exchange services as well as a range of foreign currency and
treasury services, including RBI permitted derivative arrangements provided by the
International Banking Group and the Global Markets Group. It also facilitates cash
management initiatives, centralised payment solutions, derivatives products, wealth
management services, remittance and collection services, online tax payment, end to end
payment solutions, cross-selling of a variety of financial products and services offered
by other groups in the Bank, including personal banking services, co-branded credit cards
and supply chain finance.
The Corporate Accounts unit focuses on your Bank's prime corporate clients across
India. Each client is assigned a dedicated accounts management team led by a relationship
manager to coordinate the client's banking requirements. The Corporate Accounts unit aims
to leverage its corporate relationships to grow its fund-based, non-fund-based and
Your Bank ensures focused marketing and customer service for its corporate clients. In
addition to corporate internet banking facility with multi-level access and authorisation
controls, other delivery channels include the Bank's extensive branch network, credit card
offerings and electronic payments platforms. The Corporate Account units' services are
delivered through the Bank's specialised branches in Mumbai, New Delhi, Chennai, Kolkata,
Ahmedabad and Hyderabad.
The Corporate Accounts unit's corporate loan portfolio primarily consists of fund based
products (including cash credit, working capital demand loans, bills discounting, export
finance, corporate loans and term loans for project and corporate finance) and non-fund
based products (including letters of credit, bank guarantees, deferred payment
guarantees). Varied investment products like bonds, commercial paper and non-convertible
debentures, among others are arranged by the Global Market Group of your Bank to corporate
The total outstanding loans to clients in the Corporate Accounts unit stood at
Rs. 3,385.78 billion and Rs. 4,118.97 billion in respect of fund-based products, and
Rs. 1,895.99 billion and Rs. 2,172.88 billion in respect of non-fund-based products as
of 31st March, 2017 and 31st March, 2018 respectively.
The CAG has been instrumental and a co-participant in various development schemes of
the Government aimed towards transforming India through sustainable development within the
15-year road map. Towards achieving this vision, CAG has been actively supporting many
Infrastructure projects like Roads and Ports (improving connectivity all over India and
also contributing to ease of business); Power (in line with the
B. TRANSACTION BANKING UNIT
Transaction Banking Unit (TBU), a technology driven platform offers comprehensive
transaction related products and solutions to clients. The objectives of TBU are to adopt
new technology initiatives catering to bulk transaction requirements of clients along with
other value additions like customised MIS, integration with ERP and dedicated single point
Client Support Cell, among others. Study and analysis of transaction patterns enables your
Bank to develop non-traditional techniques for assessing other Banking requirements like
Credit, Fund Management, Cross Selling and other for clients.
Your Bank offers a wide range of TBU products to Corporates, Mid-Corporates, Government
Departments, Financial Institutions viz. NBFCs, Insurance Companies, Banks, Mutual Funds
and SME Clients which facilitates their fund management requirements.
By keeping a track on market development, your Bank provides technology based
futuristic solutions to clients to keep TBU products updated and ahead of its competitors.
While, Corporate Customers and Government clients (both Central and State Government)
continue to be the key focus segment, your Bank has grown thrust to SME sector to increase
penetration among existing as well as start-up business.
TBU fee Income increased by 33.62% from Rs. 616.96 crore in FY2017 to
Rs. 824.39 crore in FY2018. A 30% growth in fee Income has remained consistent in the
last three years. Turnover registered a Y-o-Y increase of 67.30% with transactions
amounting to Rs. 21,37,369 crore in FY2018 over Rs. 12,77,580 crore in FY2017. Your Bank
was awarded with "Best Transaction Bank in India" by The Asian Banker for
C. PROJECT FINANCE AND LEASING
The project finance environment presented contrasting pictures of sector-specific
challenges where on the one hand sectors like Roads exhibited some signs of revival while
on the other hand Power, in particular non-renewable and telecom sectors continued to
grapple with the macro-economic issues. The overall sentiments of the promoters and
lenders remained subdued owing to the continuously rising number of bad loans and stalled
infrastructure projects. There are several new initiatives taken by Government as well as
RBI, and if these steps deliver successfully, FY2019 may offer some hope to all the
Your Bank's special business unit Project Finance and Leasing (PFSBU) deals with the
appraisal and arrangement of funds for large projects in infrastructure sectors such as
power, telecom, roads, ports and airports. It also covers other non-infrastructure
projects in sectors like metals, cements, oil & gas, among others, with certain
threshold on minimum project cost. PFSBU also provides support to other verticals for
vetting their large ticket term loan proposals. In order to strengthen the policy and
regulatory framework for financing infrastructure, inputs are also provided to various
Ministries of Government of India and the RBI with respect to lenders' views on new
policies, Model Concession Agreements and broader issues being faced in infrastructure
financing. The role of PFSBU has further expanded in stressed asset management in view of
the substantial increase in the number of stressed assets.
During the year, PFSBU in all earned Rs. 176 crore as fee income, which was a growth of
25% over previous year.
Project Finance and Leasing Business Performance
D. MID CORPORATE BANKING
Your Bank's Mid Corporate Group (MCG) operates through its 14 Regional
Offices across Ahmedabad, Bangalore, Chandigarh, Chennai (2), Hyderabad, Indore,
Kolkata (2), Mumbai (2), New Delhi (2) and Pune. The MCG has 55 branches as on 31st
March, 2018 with 21 branches in metro centres and 34 branches in other urban centres.
|MCG Loan Portfolio (Non-Food Domestic)
||( Rs. in crore)
|MCG Loan Portfolio (Non-Food Domestic)
The overall growth of MCG Vertical during the FY2018 was Rs. 9,433 crore, with a Y-o-Y
growth rate of 3.20%. During the year, MCG has sanctioned 80 new connections, with
aggregate Fund Based exposure of Rs. 21,551 crore, most of which are investment grade
The Trade Finance (LC & BG) turnover volume of the Group improved by 25.96% from
Rs. 76,589 crore as on 31st March, 2017 to Rs. 96,469 crore as on 31st
March, 2018. The forex turnover of the group has improved by 6.22% from Rs. 3,41,837 crore
as on 31st March, 2017 to Rs. 3,63,084 crore as on 31st March, 2018.
MCG follows the approach of having periodical structured interactions, essentially
serving as brain-storming sessions, among the key functionaries in the Group, for better
understanding of the portfolio handled by the Group. The exchange of ideas and views in
these interactions, among the top executives and the operating officials on the ground,
has been useful in the Group's planning for business growth and asset quality management.
The Group continues to partner in growth of its customers in India to expand their
activities and provides them support for acquiring assets/companies overseas, including by
way of loans to overseas subsidiaries/JVs (backed by Letters of Comfort or Stand-by
Letters of Credit).
Your Bank has been an epitome of trust across the length and breadth of the country. It
has extended its wings across the globe with financial products for the NRI community,
Indian corporates, exporters and importers as well as the local populace and corporates.
Your Bank was the first Indian bank to transcend borders with opening of branch of Bank
of Madras in Colombo, Sri Lanka in July, 1864. A branch of Imperial Bank of India at
London followed in 1921. SBI has now become a pioneer of International Banking among the
Indian Public Sector Banks with its presence across all time zones in 206 offices in 35
countries. These offices are being managed by the International Banking Group of the Bank.
The breakup of overseas offices of our Bank is as under:
||Overseas Offices as on 31.03.2017
||Offices opened during last 12 months
||Offices closed during last 12 months
||Overseas Offices as on 31.03.2018
|Branches /Sub-Offices /
|Offices of 8 Subsidiaries/JV
|Associates / Managed
|exchange Cos /Investments
During FY2018, the Bank opened 1 new branch viz. Hulhumale in Maldives. Nepal SBI Bank
Limited, a subsidiary of SBI has opened 7 new branches during the year. During the same
period, Sylhet branch (Bangladesh) and Doha branch (Qatar) were closed. Further,
2 Managed Exchange companies and 2 Representative Offices (Dubai & Abu Dhabi) came
into the gamut of SBI on account of merger with Associate Banks.
The International Banking Group of your Bank has a balance sheet size of US$ 59,819 Mio
and Net Profit of US$ 206 Mio as on 31st March, 2018. The International Banking
arm of the Bank has consistently been a major contributor to the bank's Profits, as under:
|Contribution of Foreign Offices to Net Profit
|of the Bank (Solo)
The International Banking Group has contributed immensely in transforming the industry
landscape of the country. It has positioned itself in the growth trajectory of the economy
with its specialised verticals offering their expertise and services on various fronts,
thus playing its part in building the momentum for a transforming India in tandem with
other drivers which are mentioned as under:
1. Credit: Stimulating Growth
Your Bank has facilitated Indian corporates in their growth strategy including Green
Field ventures by arranging debt in Foreign Currency.
SBI has financed bilateral loans to the tune of US$ 3.00 billion to Indian corporates
and syndicated loans worth US$ 1.60 billion during the year.
Your Bank was awarded Syndicated Loan House of the Year - India by APLMA (Asia Pacific
Loan Market Association).
Infrastructure is a key driver of the overall development of Indian economy. The
International Banking Group of the Bank has played pivotal role in setting forth the
transforming India journey. Coordinated efforts have been made to ensure faster
development of the economy by providing Foreign Currency funds at competitive rates to key
infrastructure sectors like Telecom, Ports, Fertilizers and Power sector.
Telecom: Your Bank is the only Indian Bank to have extended External
Commercial Borrowings to one of the leading telecom players.
Energy - Oil & Natural Gas: Your Bank has been active in funding overseas
acquisition by Oil Exploration and Marketing companies. These acquisitions have
significant strategic importance to India, both in terms of augmenting India's energy
security amid unstable crude prices by tying up new sources of crude oil as well as
enhancing India's stature in the global political and economic arenas.
Power: Your Bank has always been leader in providing External Commercial Borrowings
to Power sector companies and NBFCs engaged in on-lending to power sector.
Ports: With the current emphasis on "Make in India", the proportion of
merchandise trade in India's GDP is expected to increase rapidly. Thus, ports would play a
vital role in enhancing trade and commerce potential of the country by enhancing their
operational efficiency and capacity. With this backdrop and with the intent to have access
to cheaper cost of funds, Ministry of Shipping, Government of India has directed all major
ports to avail External Commercial Borrowing (ECB) to fund their future capex program.
Your Bank was the first among major Banks to support the initiative and meet the foreign
currency requirements of Integrated Ports, thus demonstrating its long-term commitment to
support country's infrastructure needs.
Fertiliser: The fertilizer industry has a major role to play in transforming the
Indian farming sector and helping India achieve the goal of self-sufficiency in
agricultural production. Your Bank has extended External Commercial Borrowing facility to
major fertilizer producers in India that is slated to play a very important role in
achieving the GoI's stated target of doubling the income of the farmers in five
2. Collaborative Partnership and Image Building
DIFC Dubai Branch of your Bank has partnered with Indian Companies in setting up green
_eld projects in Dubai, thereby promoting Indian Entrepreneurship Skills and Technology,
providing employment to the local populace and Indian immigrants and contributing to the
New Image of India to be reckoned with in the global arena.
3. Retail & Remittances
Your Bank has been a "window to India for NRIs residing in different parts of the
world through its specialised retail and remittances products. As IT infrastructure is the
bedrock for improving customer offerings in Retail & remittances segment, a detailed
IT strategy was put in place for implementation of IT enablers. The highlights of
the year are mentioned hereunder:
Remittance business strategy was re-imagined by focusing on developing
various area specific Payment and remittance corridors, like India to Nepal, Indonesia to
India, Korea to India, Bhutan to India remittance corridors. In addition to this, tie ups
were made with third party platform for US-India leg and also for launching of App
FEBA was launched at all Subsidiaries & FOs on Finacle platform. Finacle
alert server for SMS delivery rolled out in 21 territories.
InTouch Branches opened at Male, SBI Mauritius & SBI Nepal during the
Digital Village initiative rolled out in Nepal to acquire dominant position
in digital sphere in Nepalese financial sector.
Remittances through ATMs rolled out in Mauritius.
Mobile banking launched in UK, Mauritius, Maldives, Canada, Nepal and Sri
Online Account opening launched at SBI California.
Call centre operations of SBIUK relocated to India, resulting in significant
Launched remittance from USA to India through Transfast Remittance LLC, USA.
Student GIC Scheme launched at SBI Canada, thereby offering ease of entry
and banking to Indian students interested in pursuing higher studies in Canada.
Global Payment & Services:
Global Payments & Services (GP&S), a unit under International Banking Group
(IBG), comprises three branches/offices viz., Global Link Services (GLS), International
Services Branch Mumbai (ISBM), and International Services Branch Ernakulam (ISBE). It
facilitates online inward remittances from overseas locations to India, Foreign Currency
Cheque collection, Opening & Maintenance of Vostro Accounts, Asian Clearing Union
(ACU) Transactions and Bank for Foreign Economic Affairs (BFEA) of USSR section.
Tie-up with 62 Exchange Companies, and Six Banks for channelising inward
rupee remittances from Middle-East Countries to India.
Compliance framework strengthened for enhanced post transaction monitoring
through AMLOCK related to remittances.
During FY 2108, GP&S on behalf of domestic branches handled 65,765
Export bills (in US$ and Euro currencies) and 65,232 Foreign Currency cheque collection
aggregating to US$ 13,601 Mio.
During FY2018, GP&S handled 14.03 million online inward remittance
transactions amounting to US$ 9,746 Mio, received from various global centres.
4. Trade Finance
SBI has been providing a wide portfolio of Trade Services through a varied range of
products and services to exporters and importers through an extensive, well equipped
branch network that operates in all time zones in India and abroad. Monitored through a
focused Department, Global Trade Department (GTD) in International Banking Group (IBG),
the Trade Finance forms a significant part of the International Asset portfolio. SBI being
one of the top global banks is in a position to arrange low cost Trade finance to Indian
Corporates for their imports.
Global Trade Department in IBG contributes immensely in synergizing Forex business _ows
from Domestic Offices to Foreign Offices by acting as a robust link between them and
addressing related gaps. It also endeavors to leverage the Correspondent / Partner Banks
relationships for prospective Trade related business.
Recently in Nov'2017, your Bank hosted the 34th Asian Banker Association Annual
Conference to reiterate its commitment to provide support to projects that will
encourage Trade, Industrial and Investment Co-operation in the Asian region.
SBI is a prominent player in India- Asia Trade corridor and has been recently awarded
as "The Best Trade Finance Bank for the South Asia region" by Global
Trade review, London. This is the second consecutive year SBI is awarded at a regional
level. We are already "The Best Trade Finance Bank India" for
seven consecutive years in Global Finance.
5. Foreign Direct Investment
Your Bank has set up Japan Desk which aims to act as a nodal point for channelising _ow
of investments between Japan and India through State Bank of India. It provides necessary
information / market research / legal support to Japanese companies wanting to incorporate
in India. Japanese corporates looking for investment opportunities in India are being
facilitated in identifying sectors/industries of interest to them and are provided
credible market information. This has facilitated _ow of FDI from Japan to India.
SBI has also set up Korea Desk in collaboration with The Korea Development Bank (KDB).
Korea Desk in coordination with KDB connects the Korean companies with the opportunities
in Indian market. It facilitates Korean companies in setting up new business entities in
India. Korea Desk has facilitated acquisition deals.
Under the aegis of Japan Desk and Korea Desk, corporates are provided tailor made
credit products and services in a seamless manner for their ease of doing business.
Japan Desk and Korea Desk are unique facilities created in India which have facilitated
High Tech companies from Japan & Korea in the area of Automobile, Engineering Goods,
Food Processing etc. set up manufacturing facilities in India which helped in creation of
employment and also in the mission of Make in India.
6. IT Initiatives:
Your Bank as a truly Digital Bank has taken a holistic approach to innovate processes
to make them customer centric thereby enabling it to capture and convert data into
actionable insights by creating a simple, virtual organisation that appears ubiquitous to
every customer, offering tailored products to the likes, needs and preferences.
The initiatives taken at Overseas Offices are:
Finacle E-Banking Application (FEBA) i.e. Retail INB, Corporate INB and
Mobile banking solution Implemented at all overseas offices.
UK Based Contact Centre has been migrated to Bengaluru (India) thereby
extending availability of services to 24x7x365 for UK Customers at much reduced cost.
Trade Finance Solution-eTrade from Misys Plc. (UK) a back-end Application
for 22 Trade Finance Products such as Bank Guarantee, LCs, Buyers Credit, MRPA etc. since
implemented at all FOs to support all Trade Finance requirements at Foreign Offices.
Truly digital sbiINTOUCH facility has been extended from Domestic to Foreign
Offices as well. As on date it has been rolled out at 3 countries- Male, Mauritius and
Standalone SWIFT Centers at London and New York have been migrated back to
India to ensure better control, oversight and protection against possible cyber threats
Enterprise level CRM solution is being implemented across all Foreign
offices to improve deep understanding of customer needs and behaviour, requiring very
little remote support.
Bank's Digital Banking strategy is continuously reworking to initiate
various technologies such as Internet of Everything, Open Banking to enhance the choice,
utility and experience, Mobility and Wearable. Your Bank has initiated :
Enterprise Project Management tool where every IT project is tracked. a. Big data
analytics to help deliver products on customer preferences and tracking customer
stickiness for successful customer retention. b. Bank has begun using Private Cloud
selectively and has plan for Document Management Solution to capture its records
digitally. c. Generation of regulatory and other reports directly from core data under ADF
(Automatic Data Flow) for International Banking Statistics (IBS), Bank Exposure and
Your Bank has always been an integral part of the growth strategy of the Indian
economy, and has once again been on the forefront in stimulating growth and facilitating
opportunities for building momentum towards a transforming India.
3. STRESSED ASSET MANAGEMENT
For the last few years, the entire banking sector has been under stress due to a spurt
in the growth of Non-Performing Assets (NPAs). Rising NPA levels and fresh slippages
across sectors can be attributed to the following factors:
i. Inadequate pickup in the global economy and negative spill overs from global
financial markets. ii. Less than adequate pick up in domestic growth and declining
exports. iii. Cancellation of coal blocks. iv. Delay in realisation of receivables due to
subdued demand and reduced market confidence, among others. v. Stress in Steel sector due
to volatility in prices of steel; low capacity utilisation and cheap imports from other
countries; imposition of trade barriers by countries; and inverted duty structure. vi.
Stress in Power sector due to delayed tariff revisions; issues in environmental clearances
and land acquisition; high Aggregate Technical
& Commercial (AT&C) losses; and poor financial health of DISCOMS. vii. Delay in
execution of infrastructure projects and related escalation of costs coupled with increase
in receivable days and unbilled WIP impacting EBITDA margins, stalled projects, highly
leveraged business model and lower than expected equity returns for promoters/ sponsors.
viii. Stress in other major sectors like Textiles, Telecom, Sugar and Aviation, among
According to the Financial Stability Report of RBI for December 2017, risks to the
Banking sector remained at an elevated level weighed down by further asset quality
deterioration. Further, results of macro stress tests for credit risk at system, bank
group and sectoral levels (to test the resilience of the Indian banking system against
macroeconomic shocks) predict a grim picture under which GNPA ratio of all Scheduled
Commercial Banks (SCB) may increase to 10.8% by March 2018, 11.1% by September 2018 and
may further deteriorate if macro-economic situation worsens. Moreover, sensitivity
analysis conducted to study the resilience of SCBs with respect to credit, interest rate,
equity prices and liquidity risks predicts that a severe credit shock is likely to impact
the capital adequacy and Profitability of a significant number of banks, mostly PSBs.
The movement of NPAs and recovery in written-off accounts during the last four years
are furnished below:
||( Rs. in crore)
|Gross NPA (%)
|Net NPA (%)
|Fresh Slippages +
|Increase in O/s
|Cash Recoveries /
|Recoveries in AUCA
The substantial rise in Gross NPAs is partly due to the merger of erstwhile Associate
Banks (e-ABs) and Bhartiya Mahila Bank Ltd. (BMBL) with your Bank, wherein a total of
Rs. 65,523 crore of NPAs were added to the portfolio.
The Government of India in its Reforms Agenda for Responsive and Responsible PSBs has
directed creation of a Stressed Assets Management Vertical (SAMV). Your Bank takes immense
pride in the fact that SBI has been a pioneer in establishing such a dedicated vertical
almost decade and a half ago by establishing Stressed Assets Management Group (SAMG)
In order to give dedicated focus towards resolution of stressed accounts, SAMG has been
renamed as Stressed Assets Resolution Group (SARG). SARG continues to work as a dedicated
and specialised vertical for efficient resolution of high value NPAs. At present, it is
headed by a Deputy Managing Director with three Chief General Managers overseeing the
entire effort. SARG has turned into a centre of excellence in resolution of NPA and
stressed assets. As on 31st March 2018, SARG has 20 Stressed Assets Management
Branches (SAMBs) and 57 Stressed Assets Recovery Branches (SARBs) across the country and
covers 26.34% and 73.16% of your Bank's Non-Performing Assets (NPAs) and Advances under
Collection Account (AUCA) respectively. Besides initiating hard recovery measures, SARG
out with a revised framework for resolution of stressed assets, scrapping various
restructuring schemes like S4A, SDR, CDR, 5:25 Flexi restructuring. The revised framework
sends out a strong message by ending regulatory forbearance and places higher reliance on
the NCLT framework for resolution of stressed assets. In fact, enforcement of Insolvency
and Bankruptcy Code (IBC) for resolution of Stressed/NPA borrowers has provided Banks with
a time bound, transparent and effective mechanism to tackle stressed assets. Some of the
large accounts initially referred to NCLT are moving towards resolution. It is reckoned
that most of the large value accounts referred to NCLT may undergo resolution, preventing
banks from taking up huge haircuts as the going concern value of those accounts shall be
realised. As the system evolves with IBC, it may even pave the way for development of a
robust secondary market for stressed assets, leading to efficient price discovery and
transparent resolution of accounts resulting in unlocking maximum value for your Bank.
4. TREASURY OPERATIONS
The Global Markets Group performs the treasury functions of your Bank. It is
responsible for ensuring safety, liquidity and yield, besides maintaining statutory
reserve requirements. The corpus under management of Global Markets increased by 13.6%
Y-o-Y to Rs. 10,26,439 crore, as of 31st March, 2018. Global Market Group also
provides foreign exchange services and hedging instruments for risk management to
customers and offers portfolio management services to many retirement funds. The year
started off with a challenge to complete the merger of treasuries of the five Associate
Banks and Bhartiya Mahila Bank Ltd. with SBI's treasury. This was successfully completed
and the combined treasury started operations on 3rd April, 2017.
A. SLR AND NON SLR PORTFOLIO
Your Bank's Global Markets Group is also responsible for managing the Bank's SLR
portfolio, as well as liquidity management which includes maintenance of CRR and HQLAs for
Liquidity Coverage Ratio (LCR). After an impressive performance in the last two years,
this year has proven to be challenging for bond markets due to rising yields. During the
year, RBI had cut repo rate by 25 bps to 6% in August, 2017 but has held rates constant
since then. The benchmark 10 year (of 6.97% due 2026) paper which was trading at 6.69% on
31st March, 2017, ended the current _scal year at 7.53% as on 28th
March, 2018. The new benchmark (of 6.79% due 2027) paper introduced in May, 2017, fell to
a low of 6.41% in July, 2017 (on closing basis), but increased for most of the remaining
period and reached a high of 7.95% in March, 2018 before easing off to 7.55% as on 28th
March 2018. Due to this sharp rise in yields, your Bank had to increase provisions on
investments. The rise in yields was significantly sharper by historical parameters like
repo-GSec spread and real interest rates.
During the year, the net interest income from treasury investments grew 15% Y-o-Y.
Global Markets' G-Sec portfolio also increased 22% Y-o-Y, mainly on account of the merger
with Associate Banks and Bhartiya Mahila Bank Ltd. on 1st April, 2017.
To improve the portfolio yield and to optimally utilise the surplus liquidity, your
Bank has increased its Commercial Paper and Corporate Bond portfolio by around 9% on a
B. EQUITY MARKETS
Equity markets continued their rally for most of FY2018. However, post budget, tracking
global equity markets, a sharp correction in the markets was seen but Nifty still ended
FY2018 with 10.25% gains. Your Bank has managed the equity portfolio using a strategy of
actively rebalancing the portfolio based on key events, global and domestic market
conditions, quarterly earnings of the companies and their future outlook backed by its
research. In addition to the secondary markets, your Bank continues to Profitably invest
in IPOs to improve the return on the portfolio. A 112% Y-o-Y Profit growth has been
achieved from equity investments during the year.
C. FOREX MARKETS
The Global Markets Group also handles the foreign exchange business of your Bank,
providing solutions to customers for managing their currency _ows and hedging risks
through options, swaps and forwards, in addition to providing liquidity to markets. The
Group also manages the FCNR(B) deposit corpus of your Bank and provides FCNR(B) loans and
Pre & Post shipment Export Finance in foreign currency to its customers.
In order to improve ease of doing business for its customers and to keep pace with the
transforming India, your Bank continues to increase the use of IT in its Forex offerings.
A new platform for large volume customers, Forex Edge, has been launched during the year.
This is in addition to your Bank's earlier platforms, e-Forex and FX-Out, which completes
the bouquet of products for forex services. While the Forex Edge platform is for high
volume customers, e-Forex is committed towards providing a world class forex solution to
medium and small corporate customers, and FX-Out caters to the forex remittances of
retail clients without having to route them through a forex authorised branch.
Treasury Marketing Group is the customer engagement arm of Global Markets and plays a
pivotal role in marketing of Treasury Products to Institutional and Corporate clients of
your Bank. Treasury Marketing Units located across the country, are the face of Global
Markets to the customers. They interact with the customers on a daily basis, identify
their needs, and coordinate with other business units for pricing, product structuring and
In May, 2017, your Bank has set up a separate FPI desk for focused attention on FPI/FDI
business. Various processes have been put in place to mobilise business from these large
investors and the desk has successfully on-boarded 33 counterparties for the _xed income
market along with catering to the forex requirements of many large FPI clients. Earlier,
in order to improve engagement with other financial sector players including banks and
financial institutions, an Interbank Marketing Desk was created under Global Markets
Group. This desk is actively building and maintaining mutually beneficial relationships
with these clients. Global Markets Group has also augmented its in-house market research
team to enhance value added services to your Bank's clients as well as its own investment
decisions. Your Bank believes that increased resources dedicated towards building
relationships with customers and counterparties, as well as augmenting the scope and
quality of its research, will bear rich dividends and help your Bank in maintaining its
leadership position well into the future.
Private Equity / Venture Capital Fund
In this space, the JV set up with Macquarie and IFC in 2008, to manage the US$ 1.2
billion India-focused PE fund, has invested approximately 96% of its total capital
commitments. The Fund has invested across eight infrastructure assets namely Telecom
Towers, Airport, Thermal Power, Hydro power and NHAI road assets. It is currently in the
exit phase and has successfully exited from two road assets.
The Oman India Joint Investment Fund (OIJIF), a JV set up in 2010 in partnership with
State General Reserve Fund of Oman, has completed its investments for Fund-I of US$ 100
million. Fund-I has made two full exits and one partial exit. Based on the success of
Fund-I, both the partners (SBI and SGRF) decided to launch Fund-II with a target corpus of
US$ 300 million. Till date, Fund-II has received commitments of US$ 230 million from
sponsors and various domestic financial institutions. Fund-II is currently assessing
various opportunities for investing.
During FY2018, your Bank picked up a stake in National e-Repository Ltd. and made an
additional equity investment in National e-Governance Services Ltd.
Portfolio Management Services
Your Bank is the largest retirement benefit fund manager in the country with an
impeccable track record. The total AUM as on 31st March 2018 is Rs. 4,51,237
crore. Your Bank is ranked No. 1 fund manager (out of 3 fund managers) by Coal Mines
Provident Fund Organisation and No. 2 fund manager (out of 5 fund managers) by Employees
Provident Fund Organisation as per the latest data made available by respective client.
IV SUPPORT AND CONTROL OPERATIONS
1. HUMAN RESOURCES AND TRAINING
A. HUMAN RESOURCES
Human Capital is the most critical component for your Bank to achieve the Strategic
Corporate Goals. Your Bank's HR policy is being constantly reviewed to align with business
Your Bank considers its employees as its core strength and is proud of its performance
oriented and meritocratic culture. It cares for the aspirations of its staff members by
constantly trying to enrich their lives and job experiences. Your Bank believes that
challenges of the future can be overcome only by a committed and dedicated work force.
Your Bank's HR vision has been built around the principles of inclusiveness, empowerment
The financial year began with the historic merger of SBI with its five Associate Banks
and Bhartiya Mahila Bank Ltd. (BMB). The merger also witnessed the addition of around
71,000 new employees to the existing work force of around 2,00,000 employees. Initiatives
introduced by your Bank such as SANGAM', helped in smooth on-boarding of employees.
The summarised HR Pro_le of your Bank as on 31st March, 2018 is as under:
||31st March, 2017
||31st March, 2018
|Subordinate staff & Others
1. Vision, Mission & Value
Your Bank is a pioneer, in the Indian public sector in starting an independent
Ethics & Business Conduct' Department to weave its ethos in the operational
fabric. Your Bank's entire work force is committed to adhere to its newly crafted Vision,
Mission and Values.
The entire team at SBI is dedicated towards providing simple, responsive and innovative
financial solutions to a transforming India by being the preferred choice for any banking
transaction. Your Bank believes in providing world class banking facilities through living
daily its values of Service, Transparency, Ethics, Politeness & Sustainability (STEPS)
towards creating a differentiated experience of our esteemed customers.
Your Bank is focused on developing processes to attract the best talent within the
country. It has revamped the recruitment process and developed a stronger employee value
proposition to attract the right talent. During FY2018, 2,220 young tech savvy and
customer friendly probationary officers, and 600 Specialist Officers were selected through
lateral and contractual recruitment process.
3. Manpower Planning
Your Bank has adopted a scientific model for manpower planning to ensure optimal
utilisation of its human resources. To foster optimum expertise and deep domain knowledge,
your Bank introduced Job Families concept which is being adopted to place right person in
the right job. Your Bank has anticipated the need to prepare future leaders of the Bank.
Project Saksham is designed to achieve all this in a structured and holistic way.
Leadership development will remain the key focus of the HR function.
4. Staff Welfare Measures
Your Bank believes its human resource to be professionally trained with high standards
of proficient competence. At the same time your Bank also cares for the employee's
personal life. With this motive, your Bank has taken a transformative initiative to
promote healthy work-life balance. The Bank is also taking proactive measures to reduce
the hardship of the officers by reducing the transfer/posting to its minimum and
curtailing it to need based. This new approach will provide the employees a good and
Your Bank believes in recognising and rewarding good work done by the employees. It has
rolled out the scheme called SBI Gems'. Senior officials may award Gems to the
junior colleagues across the Bank as a token of appreciation. It enhances the loyalty and
motivation of employees for the organisation.
In extension of the various HR best practices to increase employees engagement, your
Bank has launched SANJEEVANI-SBI HR Helpline'. It is a two-way communication channel
between the employees and HR Team through Interactive Voice Response System, to provide
quick and meaningful resolution of HR matters. Employees can approach SANJEEVANI through
phone, SMS and e-mail.
Your Bank always aims to set examples by adopting best HR practices to make SBI as a
model organisation to work for. Your Bank introduced the Bereavement Leave' of seven
days, to help the employee to cope with loss of a near and dear ones. This leave allows
employees to spend time with their families in the hour of crisis and grief.
5. Gender Diversity
Gender sensitivity and inclusiveness have always been the corner stone of your Bank's
HR policy. Women employees are spread across all levels of hierarchy, as well as
geographical spread. Close to 2,400 Branches are being headed by women officers. Out of
total work force of 2,64,041, 24% comprises of women employees.
Your Bank maintains a Zero Tolerance Policy against Sexual Harassment at Workplace and
has put in place an appropriate mechanism for prevention as well as redressal of
complaints of sexual harassment.
6. Reservation Policy
Your Bank meticulously follows the GOI directives on Reservation Policy for SC/ST/
OBCs. It has a representation of SC, ST, OBCs and differently-abled persons among all the
cadres of its work force. Your Bank believes in having an empathic and caring approach
towards all its employees. It has appointed Liaison Officers at Corporate Centre and at
all the Local Head Offices of the Bank to redress the grievances of the SC/ ST employees
on real time basis. Your Bank also conduct the Pre-Recruitment and Pre-Promotion training
programmes regularly for SC/ST candidates.
Representation of SCs,STs,OBCs and Differently Abled as on 31st March, 2018
*Differently Abled Persons
7. Industrial Relations
Your Bank has a strong focus on industrial relations. Apart from proactively taking
measures towards employee welfare, your Bank holds constructive dialogue with Associations
and Unions for understanding and addressing the needs of our employees.
8. Care for Retired Employees
Your Bank recognises the contribution of its employees who have retired from active
service and extends a helping hand whenever required. During the year, your Bank has not
only provided financial aid for partially meeting the premium for Medical Insurance but
has also set aside funds from the Staff Welfare Fund to provide assistance to the retirees
in case of critical illnesses.
9. Inculcating Learning Culture
Your Bank emphasises on the importance of skill in its work force and constantly
upgrades it through continuous learning process. Your Bank has designed inhouse e-Learning
courses for the entire team according to the nature and role of the employee's function.
The completion of such courses has been made mandatory by linking them with Annual
Appraisal System of the employees.
B. STRATEGIC TRAINING UNIT
Your Bank has always been a learning organisation. To achieve this objective, over the
years, your Bank has developed a robust training system, which caters to all categories of
the Bank employees. It gears them not only to meet the present needs, but also enables
them to remain ahead of the learning and competitive curve. SBI's training infrastructure
in terms of facilities (consisting of six Apex Training Institutes, 54 State Bank
Institutes of Learning and Development), content, programmes and trainers is the largest
and unparalled in the Indian Banking space.
Your Bank's endeavour is always to ensure a continuous, planned and proactive training
process for individual growth and organisational effectiveness. New techniques and
methodologies are adopted and imparted on a regular basis to establish a virtuous cycle of
teach and learn to enhance quality and efficacy of training. This will also transform
employees into knowledge workers and enable them to carry forward the Bank's initiatives
towards creating customer delight and enhanced customer experience. Further, in the
fast-changing Banking environment, in order to stay relevant, your Bank is continuously
grooming all new employees and reskilling the existing ones by adopting world class and
prudent techniques in training and development.
REVAMPING THE TRAINING SYSTEM' AND MAKING SBI FUTURE READY
As quality and competence of the workforce is most critical to your Bank's performance
and future growth, there is a continuous need to inculcate a culture of self-learning and
skill enhancement. Moreover, to enhance the reach of training to more employees in a
uniform manner, use of digital technology to transform learning is increasingly being
adopted through e-learning, e-Gyanshala and Knowledge Helpline. Mass communication
programmes for building employee ownership and internal branding have successfully helped
your Bank in the past to overcome challenges, and will also continue to be a part of the
new dispensation. With the objective of making the Bank future ready, several new
initiatives have been taken, few of them are as follows:
1. Resource Optimisation
Faculty Selection Process: The selection process for faculty / trainer has
been modified with the objective of selecting officials with passion and _air for
teaching, as well as requisite command over the chosen _eld of subject.
Verticalisation of Apex Training Institutes (ATIs) to provide specific domain
knowledge: With Banking becoming increasingly specialised, a need was felt to have
institutes which would specialise in providing domain specific quality training in areas
of Credit, International Banking, Risk, Marketing, Rural Banking, IT, Leadership and Human
Resources, among others. In this backdrop, the Apex Training Institutes have been
entrusted to focus on specialised domains. Each ATI will be guided by an Advisory Council
comprising of senior officials of your Bank and an eminent external expert to steer the
way forward. An Apex Advisory Council for the whole training system has also been formed.
Centralised Control of Learning Centres: The Learning Centres have been
renamed as "State Bank Institute of Learning & Development" (SBILD). These
ILDs provide short duration role based capsule programs for certifications.
2. Capacity Building
Taking Classroom to Desktop - e-Gyanshala: To assist your Bank's operational
workforce in their daily functioning, a google like search engine - e-Gyanshala, has been
developed for providing real time on-line support through various help documents which can
be emailed and printed.
E-learning: To inculcate self-learning, your Bank continues to invest in its
e-learning portal to develop e-learning courses on all relevant topics with in-built
opportunity of self-assessment and certification through tests.
Certification Programmes for Capacity Building: The banking Industry is
witnessing change at an unprecedented and relentless pace. It therefore becomes imperative
that your Bank's workforce is abreast of the changes and equipped with latest knowledge
and operational guidelines for effectively discharging their duties. Your Bank is the
first Bank to roll out this initiative as per RBI directives in all areas, in association
with external accredited agencies including Forex Operations (IIBF), Treasury Operations
(IIBF), Risk Management (IIBF), Accounts & Audit (NIBM) and Credit Management
Launch of Moody's Certification: With the objective of Capacity Building in
the area of Commercial credit, your Bank launched Credit Certification programme in
association with Moody's Analytics on 10th October, 2017.
Role Based Grade Level Certifications for Employees: All roles in your Bank
are being divided in over 40 major categories and role manuals for certifications have
been developed by the ATIs for each of these categories to ensure quality and uniformity.
All employees up to Assistant General Manager grade will be required to do role specific
certification. This will also ensure that all employees attend at least one training
Institutional Training for Skill Development: While the ATIs would be
imparting domain specific specialised training programmes related to job families, SBILDs
will be providing role-based trainings in a uniform manner across locations.
Leadership Development: Your Bank has set up the new state-of-the-art
State Bank Institute of Leadership' in Kolkata which has become operational on 23rd
September, 2017. Originally named as State Bank Institute of Management, it has been
rechristened to focus on Leadership Development in the changing paradigm. SBIL has been
launched as a _agship institute for training senior executives in the BFSI sector and
envisioned as a centre of global excellence with world class infrastructure. The facility
will be used for enhancing the Leadership Skills of senior executives of SBI/BFSI sector
in collaboration with reputed institutions (in India and abroad).
In addition, your Bank is engaging external faculty and subject matter experts apart
from its senior executives selected as Guest Faculty. Engaging such external faculty from
reputed universities and business schools will not only make participants aware of the
best practices in leadership and management across the world, but will also equip them
with contemporary managerial and leadership knowledge and skills.
National Pool of Trainers:
Your Bank is associated with retired officers, who have domain knowledge, requisite
communication skills for imparting knowledge and a _air for teaching.
Participants Trained through ATIs/SBILDs: During FY2018, over 1,93,994 SBI
employees have received at least one training (excluding multiple trainings).
Agradoot: This mass communication programme is conducted for all sub-staff
members. Under this programme in FY2018, 43,275 subordinate staff, constituting 94% of
total subordinate staff (including subordinate staff of e-ABs) were covered.
3. Honing Skills Of Leadership
Comprehensive Development Plan for Probationary and Trainee Officers: To
ensure proper onboarding of new entrants and imparting of comprehensive training, the
training policy for Probationary and Trainee Officers has been revised to facilitate
Competency Assessment and 360 degree Feedback for Leadership Development: A
leadership competency framework helps in de_ning the knowledge and skills required for
effective leadership. Your Bank has a prede_ned leadership competency framework for its
top executives detailing the desired competencies and proficiency level for each grade.
All TEG officials are being taken through the Assessment Process to identify their
4. Marketing of Training
Marketing of Training Capacity to other Banks and Undertakings:
Spare capacity at ATIs and SBILDs would get created once our proposed digital and
structured training interventions viz. e-Gyanshala, e-learning and Certification
programmes are fully implemented. This surplus capacity is proposed to be used for revenue
generation from other Banks and undertakings .
Marketing of e-lessons: Your Bank's generic e-lessons, which have a huge
demand due to its rich content is also proposed to be marketed to other Banks in India and
A dedicated research wing is being set up at SBIL, Kolkata for high end quality
research focused on banking and financial services in the areas across management
discipline and _ntech.
6. Transition To Retirement
Your Bank conducts this programme for the senior executives of the Bank on the eve of
their retirement. This is to equip and orient them with the change and enable them to lead
a happy and satisfying second innings, after having served the Bank for long years.
2. INFORMATION TECHNOLOGY
Your Bank is a strong proponent of leveraging information technology to deliver
convenience to its customers. Your Bank has been offering innovative and cutting-edge
products to its customers with the objective of enabling banking transactions at anytime
and from anywhere.
Digitalisation and excellence in operations has been core to your Bank's strategy in
providing convenience to customers. It has resulted in a reduction in turnaround time and
extended benefits to your Bank's customers.
A. INTERNET BANKING
Internet Banking solutions cater to the various payments, fund-transfers, e-Tendering,
e-Auction and bulk payments related requirements of the Government/ PSUs/ Large and Medium
Corporates as well as for Retail Internet Banking (RINB) customers. This channel has
enabled more than 159 crore transactions during FY2018.
Internet Banking Users (No. in lakh)
Some of the new features launched in Net Banking in FY2018 are as under:
ABC E-procurement: White Label e-Tendering Portal integrated with MOPS
CFMS Andhra Pradesh Integration (SBMOPS, GBSS and RBI for e-Kuber)
CPWD Integration, Settlement and Refunds
Payment Integration with GEM (Government e-Market Place)
PPF Account Nominee display through INB
e-Mail Alerts for INB transactions-Retail
MySBIWorld (Integration with Credit Cards, Mutual Funds) for Migration from
Electra ACS to Bill Desk ACS for Maestro, Mastercard, and Prepaid card
Integration with GSTN and reporting of transactions to FRT-TAX Engine on
- Beneficiary addition threshold count increased from 1 to 3 per day for retail
- Multicity cheque book issue for CA in INB
- Option of 20 leaves cheque books through INB
Your Bank is building momentum and embracing change for transforming India through the
Samsung Pay participation for Token Service - Tap and Go Payment was
introduced. It is secured as Tokenised PAN is stored on mobile.
INTOUCH Instant Card Issuance Services for SBI Nepal and Mauritius
Branches facilitated with Debit Card Management System (DCMS) support
functions for addressing customer concerns with respect to debit cards.
Bank issued over 39.50 crore debit cards with approximately 26 crore
actively used debit cards, till 31st March, 2018.
C. "YONO" (YOU ONLY NEED ONE)
YONO (You Only Need One) is one of the most ambitious, path-breaking, secure digital
offering of State Bank of India which was launched on 24th November, 2017.
D. CUSTOMER RELATIONSHIP MANAGEMENT (CRM) SOLUTION AND PROJECT IMPACT
The entire project consists of seven releases for CRM (covering Sales, Service and
marketing modules), development of IMPACT platform, CRM for FOs and implementation of
other solutions (MDM, DLP, SAS Analytics, CRM e-Learning Solution etc.)
The key activities completed during the year are as follows:
Lead modules for retail (PBU, REHBU, SME, Agri, MCS, NRI) and corporate
business segments (CAG & MCG) rolled out
e-CRM Learning tool deployed and integrated with Gyanodaya
Customer 360 for Retail, CAG and MCG rolled out
Informatica Master Data Management (MDM) went live with Customer 360; MDM
will hold master data of Customer, Geography, Product and Service
Non-Financial Service (NFS) request module enabled in CRM; 24 different
types of service requests can be lodged and tracked through CRM
Deceased claim settlement request can also be lodged and tracked through CRM
Complaint Management System went live for 13 FOs
Data Loss Prevention (DLP) agents deployed in Domestic and Foreign Offices
Work in progress towards CRM roll out for contact centre and complaint
management as part of Service Module
Automation of Service Request processing envisaged with integration of CBS
and CRM and handling of service requests by CPCs in coming months
E. FINANCIAL INCLUSION & GOVERNMENT SCHEMES (FIGS)
Some of the key developments of FY2018 are as under:
Development of SAP for Corporate Customers to facilitate acceptance of
payment based on Aadhaar Number to Non - Individual / Corporate Merchants like Petroleum
Banks, Chain Stores, Malls and Indian Railways.
Modification in RD, STDR in BC Channel to enable the closure of RD, STDR
available at BC Channel.
Functionality for Referral Code (PF number of staff/ BC Code or Aadhaar
Number) Capture from Aadhaar Pay App.
Customer Enrolment through eKYC for all States except Assam, Meghalaya and
Jammu & Kashmir and minor customers under liberalised KYC product.
Mini ATM, a new service for Mobile seeding introduced for both non-FI and FI
Mini ATM, a new service for Aadhaar linking through Kiosk for both FI and
Non FI customers introduced by using Mini ATM.
F. CORE BANKING DEVELOPMENT
During the year, your Bank's key developments are as under:
Exim Enterprise Edition rolled out at Branches for Trade Finance.
Changes for regulatory compliance like GST, FATCA/CRS, Aadhar Linking to
accounts, CKYC introduced to reduce efforts and paperless banking.
Electoral Bond made available at identified branches.
Merger activity of Associate Bank with SBI completed successfully. After
merger your Bank has around 42.42 crore customer base in over 24,000 branches.
G. OPERATIONS AND TECHNOLOGY SUPPORT
Post-merger, there was a necessity to rationalise operations and to merge
branches/offices located in close proximity to strategic locations within a reasonable
time frame so that your Bank may start reaping the benefit of merger.
With this objective, bulk merger of branches was scheduled on various dates, and 1805
branches and 244 admin offices were rationalised. This is expected to reduce operating
cost to the tune of
Rs. 1,099 crore in a year.
To facilitate geographical distribution of pensioners, your Bank has set up 16 CPPCs at
all Local Head Office Locations and one dedicated CPPC for Defence pensioners at
Various facilities provided to pensioners are as under:
Submission of Life Certificate at any branch or digitally as per pensioner's
SMS to pensioners containing details of pension after credit of pension
Pension slips can be generated from any branch, through Internet banking,
e-mail, and Samadhaan App
Helpline facility is available at all CPPCs
Arrear calculation sheet provided to pensioners after every revision
For registering complaints, the following can be done:
- Pensioner can send an SMS "UNHAPPY" to 8008202020
- Connect with the Bank's Contact Centre at Toll Free No. 1800110009 which is available
- Contact Designated Nodal Officer at all LHO Centre
Some of the key highlights for FY2018 were:
Successful revision of pension for Defence pensioners under OROP scheme
Payment of arrears to Defence pensioners after de-linking of qualifying
7th CPC revision completed for over 38.50 lakh pensioners of various
central, state and autonomous body categories
Successful merger of pension data of Associate Banks comprising over 9.5
H. OPERATIONS AND PAYMENT SYSTEM GROUP
Prepaid Cards: Your Bank is leveraging its Prepaid cards solution to provide
Automated Fare Collection (AFC) facility to upcoming Metro projects.
Funds Transfer and Settlement: The volume (number) of outward fund transfers
through NEFT increased by 37.74% to 316.39 million during FY2018 compared to 229.70
million in FY2017. Your Bank has established itself as a leader in NEFT, with a market
share of 15.19% as of 31st March, 2018 (as per latest data by RBI). The volume
(number) of outward fund transfers through RTGS increased by 46.39% to 16.25 million
during FY2018 compared to 11.10 million in FY2017. In RTGS, your Bank maintained a market
share on 13.36% as on 31st March, 2018 (as per latest data by RBI).
The volume (number) of messages sent through SWIFT increased by 15.64% to 3.03 million
during FY2018 compared to 2.62 million in FY2017.
I. INNOVATION PROGRAM
Some of the important IT-Innovation projects and activities undertaken by your Bank are
Intrapreneurship Scheme: Your Bank is encouraging employees to undertake
innovative projects in the same way as an Entrepreneur. Your Banks developed SBI
Intelligent Voice Assistant SIVA' which is based on Artificial Intelligence (AI),
Machine learning (ML) and Natural Language Processing (NLP).
Start-up Engagement Program: Products/solutions from Fin-Tech start-ups
which are based on
Emerging/ Niche technologies and are useful for the Bank are procured. During the year,
6 startups have been engaged. In some cases, use case evaluation is being undertaken.
Hackathons: During the year, your Bank conducted three end-to-end Hackathons
(Idea submission till Working prototype submissions) to secure solutions for YONO, Wealth
Management and CMP across themes such as Facial Recognition, Voice based authentication/
chatbot, Signature Recognition, Mandate Registration process automation, Automated real
time customer identification using AI/ ML/ Cognitive tech/ IOT/ Beacons and others.
J. IT SPECIAL PROJECTS III
During the financial year, Quick Photo debit Card facility was made available to all
SBI customers for getting their debit Card printed at any of our sbiINTOUCH branches. In
addition, sbiINTOUCH branches were launched at three overseas centres of Nepal
(Kathmandu), Maldives (Male) and Mauritius, during the financial year.
During FY2018, onboarding facility and OTP through email for NRI customers; and Secure
OTP for all transactions have been provided in Wealth Management Application. Further, for
better monitoring of performance of SWAYAM Barcode based Passbook printing kiosks at
various levels, SWAYAM Transaction and Health Dashboard have been deployed.
Branch Darpan, a web-based application has been made operational in the FY2018, which
provides self-assessment for the Branches on various parameters/ aspects of Customer
Delight, including infrastructure, ambience, cleanliness, display of notices and
subsequent monitoring by Controllers at various levels.
The future of Banking business is data driven and SBI with its mammoth database, has
potential to reap the benefits.
Some of the major works carried out by Analytics Team during FY2018 are listed
1. Cost Efficiency
To improve the CIR of the Bank, Analytics Team has completed few projects which
Rationalisation of currency chests
Cost per transaction across various digital channels
Performance analysis of SBI POS Machines
Identification of Mini Currency Administration Cell (Mini-CACs)
2. Business Opportunities
Churn Prediction Model for Current Accounts
Propensity Model for Loans to (SSBL & Mudra)
Churn Prediction Model for HNI Customers
3. Risk Management
Identification of Shell companies
Downtime and reduction via ATM Fault Prediction
Employee Search Engine
Collaborative Project with BU to increase Cross-selling Income
L. BUSINESS INTELLIGENCE
Business Intelligence is core of any business and Business Intelligence Department at
GITC also plays a pivotal role. Your Bank's Business Intelligence Department has made data
available at right time for business decisions through various reports and dashboards.
For operational convenience and control, a number of new dashboards have been hosted by
BID on mobile devices as well as on desktops. Latest BI tools are being procured to
improve visualisation and ease of use.
Office365 provides a productivity suite of applications for the employees of your Bank.
All State Bank users were migrated on Office365 platform in the month of September, 2017.
This has enabled employees to access the Banks email and other services like one Drive,
Skype and others from anywhere, reducing the dependency on office desktop.
The Office365 suite of application has replaced the old email solution in your Bank
(EMS) and also provided services like OneDrive for business which solves the documents
sharing problem among employees for better collaboration. Microsoft Teams provides an
integrated virtual workplace to the employees, which will increase communication and
collaboration among the departments and teams on a single platform.
N. SOCIAL MEDIA
Your Bank's social media presence was established in November, 2013 and its social
media strategy has come a long way in last few years. Your Bank has been consistently
ranked number one globally among Top 100 Banks using Social Media by The Financial Brand
in their list of Power 100 Ranks'.
Taking cue from various interactions on social media, focus has been kept on creating
contact of customer's choice, be it tutorial videos on our various digital products,
important announcements, security tips for using digital products or tax saving options.
Your Bank's Twitter handle has featured on Brand Equity's Twitter Advertising Index
seven times during this financial year. SBI was the first Indian bank to achieve 100
Million views on YouTube and 1.5 million views on Quora. Your Bank has also focused on
creating content for the new age professionals present on LinkedIn and is one of the most
engaging Indian banks on the platform. This year the official pages on Instagram and
Facebook started making use of the stories' feature to engage the audience.
O. COMPLAINT MANAGEMENT DEPARTMENT (GITC)
Complaint Management Department (CMD) at GITC handles customer complaints lodged in
Complaint Management System (CMS) and also complaints received through e mails relating to
Anytime channels including Debit Card Transactions (ATM/POS/PG); Prepaid Card Transactions
(ATM/POS/PG); INB (Corporate & Retail INB) Transactions; Mobile Banking Transactions -
SB Anywhere, State Bank Buddy and UPI; AEPS (Debit Card Transactions) and SBI E-pay
The objectives of the department are as follows: a. To handle and resolve the
complaints within prescribed TAT. b. Analyse the reasons for complaints and suggest
remedial measures. c. Coordination with contact centres of SBI, other bank's complaint
handling teams, and NPCI to ensure effective handling of complaints.
P. IT SPECIAL PROJECT II
Oracle Financial Services Analytical Application (OFSAA): The key metrics which de_nes
the coverage of project consists of the following:
Consistent and Integrated delivery across 22 modules
With insights of more than 650 OBIEE reports
Covering 10 departments in risk and finance
Covering more than 250 internal stakeholders
Covering 500 million accounts
Across 23,500 branches
Spread over 27 countries
Through more than 15 sources of data
List of IT - Awards received during FY2018
|CII Award for Customer Obsession 2016
||1. Order of Merit Award for Banking
||2. Accelerator (BEDA_T+O)
||1. Order of Merit Award for Banking
|ABF Retail Banking Awards 2017
||Debit Card Initiative of the Year India
|IDRBT Banking Technology Excellence
||1. Best Bank Award for Use of
|Awards for the year FY2017
||Technology for Financial Inclusion
||Among Large Banks
||2. Best Bank Award for Electronic
||Payment Systems among Large
|CIO 100 by IDG
||1. Best CIO of the year
||2. Best CISO of the year 2017
||3. Best Bank in terms of
||Implementations of Cognitive
|ASSOCHAM Technology Award
||Emerging technology award
|SKOCH AWARD Technologies for Growth
||1. 5 Order of Merit
||2. 3 Gold
||3. 2 Platinum
||4. 1 Best Technology Bank
||Best Innovative Product Award
|IBA Banking Technology Conference
||1. Best Technology Bank of the Year
||(Large Category Bank)
||2. Most Innovative Project using IT
||3. Best Financial Inclusion Iinitiatives
||4. Runner up- Best use of Digital and
|ET NOW BFSI (Banking Financial Services
|& Insurance) Awards, 2018
||2. Best CIO (Individual Category)
3. RISK MANAGEMENT
A. RISK MANAGEMENT OVERVIEW
Risk Management at your Bank includes risk identification, risk assessment, risk
measurement and risk mitigation and its main objective is to minimise negative impact on
Profitability and capital.
Your Bank is exposed to various risks that are an inherent part of any banking
business. The major risks are credit risk, market risk, liquidity risk and operational
risk which includes IT risk.
Your Bank has policies and procedures in place to measure, assess, monitor and manage
these risks systematically across all its portfolios. Your Bank is amongst the leaders to
undertake implementation of the Advanced Approaches under Credit, Market and Operational
risk. Your Bank has also undertaken the Enterprise and Group Risk Management Projects,
which aim to adopt global best practices. The projects are being implemented with support
from external consultants.
RBI Guidelines on Basel III Capital Regulations have been implemented and your Bank is
adequately capitalised as per the current requirements under Basel III. An independent
Risk Governance Structure, in line with international best practices, has been put in
place, in the context of separation of duties and ensuring independence of Risk
Measurement, Monitoring and Control functions. This framework visualises empowerment of
Business Units at the operating level, with technology being the key driver,
enabling identification and management of risk at the place of origination. The various
risks across Bank and the SBI Group are monitored and reviewed through the Executive Level
Committees and the Risk Management Committee of the Board (RMCB) which meets regularly.
Risk Management Committees at Operational unit and Business unit level are also in place.
1. Credit Risk
Credit Risk is de_ned as the possibility of losses associated with the diminution in
the credit quality of borrowers or counter-parties from outright default or from reduction
in portfolio value. Credit Risk emanates from a bank's dealings with an individual,
non-corporate, corporate, Bank, financial institution or sovereign.
Your Bank has put in strong credit appraisal and risk management frameworks in place
for identification, measurement, monitoring and control of the risks in credit exposures.
Industrial environment is scanned, researched and analysed in a structured manner by a
dedicated team for deciding your Bank's outlook and growth appetite for each of the
identified 39 industries/sectors, which constitute about 70% of the Bank's total domestic
exposure. Risks in these sectors are monitored continuously and wherever warranted, the
industries concerned are reviewed immediately. Impact of events like rise in Crude oil
prices, Profitability of telecom majors, power sector reforms, RERA implementation, Gems
& Jewellery, the upheaval in commodity prices to name a few, were analysed and
appropriate responses to these situations were strategised by your Bank to mitigate
possible risks. Exposure to sensitive/ stressed sectors like Real Estate/Telecom are
reviewed at regular intervals. Sectors like Power, Telecom, Iron & Steel, Textiles,
which are going through a challenging phase, are watched continuously and analysis of new
developments are shared with the business groups to enable them to make informed credit
decisions. Knowledge sharing sessions are conducted for the benefit of the operating staff
at various levels.
Credit rating thresholds for each industry are decided on the basis of the outlook.
Your Bank uses various internal Credit Risk Assessment Models and scorecards for assessing
borrower wise credit risk. Models for internal credit ratings of the borrowers have been
developed in-house. They are reviewed through cycles of comprehensive validation and back
Your Bank has adopted an IT platform for credit appraisal processes through a Loan
Originating Software/Loan Lifecycle Management system (LOS/LLMS). Models developed by the
Bank are hosted on these platforms which are interfaced with CIBIL and RBI defaulter's
In order to focus on capital conservation and maximisation of return on capital, your
Bank has introduced Risk Based Budgeting (RBB). Risk sensitive return on capital is
measured based on Return on Credit Risk Capital (RoCrC). Achievement of the budgeted
advances level are subject to scrutiny under the specified levers. Risk Adjusted Return on
Capital (RAROC) framework has been implemented from July'2015. The Customer level RAROC
calculation has also been digitised. Further, behavioural models for monitoring and
scoring the retail borrower performance have been developed and hosted on Credit Risk Data
Mart. Your Bank has procured the ORACLE "OFSAA" platform for the Credit Risk
Management System and the implementation of the system has been initiated with the
shortlisted System Integrator.
Your Bank has put improved mechanism in place to manage Credit Concentration Risk, by
way of risk sensitive Internal Prudential Exposure Limits framework for single as well as
group borrowers. These limits are _xed on the basis of the internal risk rating of the
borrower. This framework is one step ahead of the regulatory prescription of Prudential
Exposure norms, which is one size _ts all' in nature. These exposure norms are
monitored regularly at a de_ned periodicity.
Your Bank conducts Stress Tests every half-year on its Credit portfolio. Stress
Scenarios are regularly updated in line with RBI guidelines, industry best
practices and changes in macro economic variables.
RBI has allowed your Bank to participate in the parallel run process for Foundation
Internal Ratings Based (FIRB) under the Advanced Approaches for Credit Risk. The data
under parallel run of FIRB is being submitted to RBI. Models for estimation of Probability
of Default (PD), Loss Given Default (LGD) and Exposure at Default (EAD) are hosted in
Credit Risk Data mart for computation of IRB capital. Independent Risk Advisory (IRA)
launched last year to examine Medium and High value credit proposals, has been further
strengthened to increase the coverage.
2. Market Risk
Market Risk is the possibility of loss that Bank may suffer on account of change in
value of its trading portfolio, on account of market variables such as exchange rate,
interest rate and equity price, among others.
Your Bank's market risk management consists of identification and measurement of risks,
control measures, monitoring and reporting systems.
Market risks are controlled through various risk limits, such as Net Overnight Open
Position, Modified Duration, PV01, Stop Loss, Upper Management Action Trigger, Lower
Management Action Trigger, Concentration and Exposure Limits.
Your Bank has Asset class wise risk limits for its trading portfolio and monitors the
same on an ongoing basis.
Currently, market risk capital is computed under the Standardised Measurement Method
(SMM). Your Bank has submitted Letter of Intent to the Reserve Bank of India for migration
to Internal Models Approach (IMA) under the Advanced Approaches for market risk.
Value at Risk (VaR) is a tool used for monitoring risk in your Bank's trading
portfolio. Enterprise level VaR of the Bank is calculated on a daily basis and also back
tested daily. The Stressed VaR for market risk is also computed on a daily basis. The VaR
methodology is supplemented by conducting quarterly stress tests of the trading portfolio.
3. Operational Risk
Operational Risk is the risk of loss resulting from inadequate or failed internal
processes, people and systems or from external events.
Key elements of your Bank's Operational Risk Management Policy, among others, include
ongoing review of systems and controls, creation of awareness of operational risk
throughout the Bank, timely incident reporting, enhancing operational risk awareness
through RAW (Risk Awareness Workshop), improving early warning information through
implementation of Key Indicators (comprising of Key Risk Indicators (KRIs), Key Control
Indicators (KCIs) and Key Process Indicators (KPI)), the resolution of risk issues by
effectively tracking and follow- up of outcomes of assessment, assigning risk ownership,
aligning risk management activities with business strategy. All these components ensure
better capital management and improve quality of Bank's services/ products/ processes,
besides ensuring compliance with regulatory requirements.
RBI has granted In-Principle approval to your Bank (on a solo basis) to migrate to AMA
(Advanced Measurement Approach) for computation of operational risk capital charge on
Parallel Run basis.
For FY2018, your Bank on a stand-alone basis, had assigned capital for Operational Risk
as per Basic Indicator Approach (BIA). Capital charge as per AMA has also been calculated
as part of Parallel Run.
Your Bank Celebrated Risk Awareness Day on 1st September. Risk culture is
being embedded through training to staff at all levels through e-learning lessons.
4. Enterprise Risk
Enterprise Risk Management aims to put in place a comprehensive framework to manage
various risks and alignment of risk with strategy at the whole Bank level. It
encompasses global best practices such as Risk Appetite, Material Risk Assessment and Risk
Aggregation, among others.
As part of your Bank's vision to transform the role of Risk into a Strategic function,
a Board approved Enterprise Risk Management (ERM) Policy is in place.
With an objective of maintaining a sound risk pro_le, your Bank has developed a Risk
Appetite Framework incorporating limits for major risk metrics. For promotion of a strong
risk culture in the Bank, Risk Culture Framework is being operationalised in a phased
Your Bank conducts a comprehensive Internal Capital Adequacy Assessment Process (ICAAP)
exercise on a yearly basis with respect to adequacy of Capital under normal and stressed
conditions. The Pillar 2 risks, such as Liquidity Risk, Interest Rate Risk in Banking Book
(IRRBB), Concentration Risk and others along with the Pillar 1 risks such as Credit,
Market and Operational risks are covered under ICAAP.
5. Group Risk
Group Risk Management aims to put in place standardised risk management processes in
Policies relating to Group Risk Management, Group Liquidity and Contingency Funding
Plan (CFP), Arm's Length and Intra Group Transactions and Exposures are in place.
Monitoring of consolidated Prudential Exposures and Group Risk components is also being
done regularly. A quarterly analysis of risk-based parameters for Credit Risk, Market
Risk, Operational Risk and Liquidity Risk, among others, is presented to the
Enterprise & Group Risk Management Committee (EGRMC)/ Risk Management Committee of the
The Group Internal Capital Adequacy Assessment Process (Group ICAAP) document includes
an assessment of identified risks by Group entities, internal controls and mitigation
measures, and capital assessment, under normal and stressed conditions. All Group entities
where SBI has 20% or more stake and management control, including Non-banking entities,
carry out the ICAAP exercise and a Group ICAAP Policy is in place to ensure uniformity.
6. Basel Implementation
Your Bank has been identified as D-SIB by the Regulator and has to keep additional
Common Equity Tier 1 (CET1) 0.60% of RWAs applicable from 1st April, 2016 in a
phased manner and it will become fully effective from 1st April, 2019. Your
Bank has also started maintaining Capital Conservation Buffer (CCB) in a phased manner and
will reach 2.5% by 31st March, 2019.
Your Bank has been declared as the Winner of Golden Peacock Award for Risk
Management' for the year 2017.
B. INTERNAL CONTROL
Your Banks' internal audit function evaluates effectiveness of controls and the
adherence to internal processes and procedures. The internal audit function undertakes a
comprehensive risk based audit of all operating units of your Bank in line with regulatory
guidelines relating to Risk Based Supervision. Internal audit in your Bank is independent,
enjoys sufficient standing in the Bank and is headed by a Deputy Managing Director. The
Internal Audit (IA) function works under the guidance and supervision of the Audit
Committee of the Board.
Keeping pace with rapid digitalisation, your Bank has initiated technology driven
interventions, in conducting various audits and moving towards automation in your Bank's
audit processes. Some key initiatives include the following: a) System-based off-site
transaction monitoring and Concurrent Audit of business units to ensure continuous
monitoring of controls. b) Early Review of sanctions, to assess quality of loans of Rs. 50
lakh and above. c) Web based RFIA (Risk Focused Internal Audit) which is _exible, scalable
and expandable with enhanced level of automation. d) Online self audit by branches, for
self-assessment by branches and vetting by controllers. e) Audit _ndings are made
available on MIS dash board on T+1 basis, to facilitate identification of concerns and
monitoring of compliance by Management.
ii. Your Bank has adopted the process of Risk Focused Internal Audit (RFIA), wherein
audit prioritisation is decided based on assessment of risk in various activities and
businesses conducted by the Bank.
iii. As part of RFIA, IA Department conducts various audit, viz., Credit Audit,
Information Systems Audit, Home Office Audit (audit of foreign offices), Concurrent Audit,
FEMA Audit, Audit of Outsourced Activities of the Bank, Expenditure Audit and compliance
audit. It also undertakes Management Audit of business verticals to assess their strategic
Risk Focused Internal Audit (RFIA)
IA Department undertakes a critical review of the entire operations of auditee units
through RFIA, an adjunct to Risk Based Supervision, as per RBI directives. The domestic
branches have been broadly segregated into three groups (Group I, II & III) on the
basis of business pro_le and risk exposures. During FY2018, IAD has audited14,638 domestic
branches/BPR entities under the RFIA.
FEMA Audit of branches categorised as authorised dealers is conducted by audit
officials, who are well versed with Foreign Exchange Business and FEMA
/ RBI guidelines. During the FY2018, 430 auditee units were covered, under FEMA
Credit Audit aims at achieving continuous improvement in the quality of Commercial
Credit portfolio of the Bank, through critically examining individual large commercial
loans with exposures of
Rs. 10 crore and above annually. Critical accounts with exposure of Rs. 100 crore and
above, are reviewed at Half-Yearly intervals. The Credit Audit System also provides
feedback to the Business Units, by way of warning signals, about the quality of advance
portfolio in the unit and suggests remedial measures.
Early Review of Sanction (ERS Large Loans)
Audit in high value credit area has an off-site review machanism (Early Review of
Sanction Large Loans) of all the pre-sanction and sanction process of individual
advances of Rs. 5 crore and above, within 3-6 months of sanction / enhancement / renewal.
ERS has been integrated with Loan processing software for online review, submission of ATR
and monitoring by controllers.
Early Review of Sanction (ERS Small Loans) was introduced to review
sanctions of more than Rs. 50 lakh up to
Rs. 5 crore, to capture the critical risks in the proposals sanctioned at an early
stage and apprise the Controllers of such risks, for mitigation thereof.
Information System and Cyber Security Audit
All Branches are subjected to Information System (IS) Audit to assess the IT related
risks, as part of the periodic audit. IS Audit of centralised IT establishments is carried
out by a team of qualified officials/ outside experts. During the FY2018, IS Audits of 86
centralised IT establishments were conducted. In line with the RBI guidelines on ensuring
Cyber Security of the IT System of the Bank, we have initiated the process of conducting
Cyber Security audit from the yerar 2017-18.
Foreign Offices Audit Home Office Audit
During the FY2018, Home Office Audit was carried out at 20 foreign offices. Management
Audit was completed at one Representative office and one Subsidiary.
Concurrent Audit System
Concurrent Audit system is essentially a control process, integral to the establishment
of sound internal accounting functions and effective controls. Concurrent Audit covers
your Bank's Advances and other risk exposures as prescribed by the regulatory authority.
Concurrent Audit System has been revamped by introducing a web-based solution.
Off-Site Transaction Monitoring System (OTMS)
As part of our initiative towards continuous monitoring of controls, Off-Site
Transaction Monitoring System (OTMS), a web based solution, was introduced, to further
strengthen the transaction audit, to capture control gaps without much loss of time and
take corrective actions. At Present, 37 types of exceptions are being monitored and _agged
to the branches for verification by them. The exceptions are periodically reviewed and
enlarged, depending upon the need and certain triggers.
Legal Audit was conducted, to cover all loan and Mortgage related documents of high
value loans of Rs. 5 crore and above. During the FY2018, Legal Audit has been completed in
Audit of Outsourced Activities
Audit of Outsourced activities is conducted to provide reasonable assurances that
adequate systems and procedures are in place to mitigate legal, financial and reputational
risks that may arise on account of outsourcing of financial and IT related activities to
third parties. During FY2018, 657 audits have been conducted covering 57 activities, which
includes ATM services, Corporate BCs, Recovery & Resolution agents, Doorstep banking,
Cheque printing etc. Total No. of 537 vendors have been covered during the year.
The Bank has engaged the services of 58,000 individual BCs and CSP under financial
inclusion plan, who are being audited and during FY2018, 29,038 such audits were
Management Audit covers business verticals, administrative Offices / departments and
examines the strategy, processes and risk management practices. It encompasses Corporate
Centre establishments / Circle Local Head Offices
/ Apex Training Institutions and Regional Rural Banks (RRB) sponsored by the Bank.
During FY2018, 38 establishments / administrative offices were audited under Management
C. COMPLIANCE RISK MANAGEMENT
Your Bank has been ascribing highest level of importance to Compliance Risk Management
and has taken a number of initiatives to strengthen compliance function keeping in view
the scale and complexities of business operations. Some key initiatives are:
All products, process, policies are vetted from the regulatory compliance perspective
before they are approved and operationalized or reviewed.
A Compliance Risk Management Committee, comprising of Senior Executives from Business
Verticals and Support functions oversees all compliance related issues. The committee
meets regularly and extends necessary guidance to the all concerned in the smooth
implementation of Risk Based Supervision (RBS) of RBI and other regulatory matters.
Compliance Testing of RBI's regulations and guidelines is regularly carried out and the
testing universe is being expanded to ensure that the control mechanisms are in place to
comply with regulatory guidelines.
Compliance culture is crucial for the Bank to manage the compliance risk effectively
and is being strengthened through various forms of communication and interactions across
the organization. The Bank has also created a pool of trainers capable of handling
sessions on compliance.
All of the above will help your Bank in strengthening compliance function.
D. AML-CFT MEASURES:
In order to mitigate risks arising out of non-compliance of KYC norms, AML/CFT
guidelines, your Bank has put in place a Board approved and transparent Know Your Customer
(KYC) Policy incorporating therein Bank's framework for customer acceptance, customer
identification, monitoring of transactions, Customer Risk categorisation and reporting of
transactions to FIU-IND. The Policy has been updated and subsequent changes, as and when
notified by RBI, are also being circulated through e-Circular for Branches /Offices for
ensuring meticulous compliance of the same by all operating functionaries. A robust system
is in place containing a combination of manual as well as system enabled methodology to
ensure KYC compliance in the Bank.
Your Bank has allotted Uniform Customer Identification Code (UCIC) to all individual
customers as per RBI guidelines. Periodical updation of KYC is undertaken by the bank as
per RBI guidelines. E-KYC is made mandatory for account opening to strengthen its AML and
A number of initiatives have been undertaken to bring greater awareness amongst Bank
staff about KYC and AML/ CFT compliances. For creating awareness of KYC Compliance
e-lessons have been mandatory for all staff members. AML-CFT Day is being observed on 2nd
November every year. Pledge has been taken on that day at all branches/processing centres
and Administrative Offices. Similary 1st August is observed as KYC
Compliance and Fraud Prevention Day.
Your Bank has procured a new Anti-Money Laundering solution (FICO) which is being
rolled out in Domestic and Foreign branches and will enable online screening of
transactions/SWIFT messages, Risk Scoring and Transaction Monitoring to fully comply with
the regulatory requirements in India and respective geographies of Foreign Offices.
4. OFFICIAL LANGUAGE
Your Bank took innovative steps to propagate use of official language in reaching out
to its 42 crore customers. The key highlights are mentioned below:
Introduction of Online Rajbhasha Roster
Your Bank has developed and introduced an online Rajbhasha Knowledge Roster for its
staff members where they can submit details of their knowledge of Hindi.
Executives of the Bank pledged to do most of their Correspondence and Internal work in
Hindi on 14th of every month
All executives of your Bank pledged to do most of their correspondence and internal
work in Hindi on 14th of every month which is being regularly followed by them.
One day Hindi Workshop at District Headquarters
Your Bank's different Administrative Offices conducted one day Hindi Workshop for staff
of their offices and branches starting December, 2017 in the district headquarters spread
all over the country.
5. MARKETING AND COMMUNICATIONS
The Marketing & Communications (M&C) department is responsible for your Bank's
initiatives for all brand and product marketing and public relations. The primary
objective of this department is to optimise your Bank's efforts in promoting its products
and services, adopting contemporary marketing approach to get brand prominence among
prospective customers as well as to reinforce the brand's image among existing customers.
The M&C department's key responsibilities include developing and implementing
integrated marketing strategies to address business challenges of different business units
divisions of your Bank including Indian and overseas operations. This department comprises
of skilled professionals and domain specialists drawn from various relevant _elds of
media, marketing communications, advertising and public relations.
Your Bank took a giant leap by merging five subsidiaries and Bhartiya Mahila Bank Ltd.
with itself. With this mega merger, your Bank also undertook a re-branding exercise. The
M&C department, under the guidance of the Bank's senior management undertook the
implementation of a brand identity refresh to energise the brand to stay relevant to the
youth as well as global audiences. While the legendary SBI monogram has been retained,
combining it with the abbreviated SBI word is the key change in the refreshed brand
identity. The monogram has been re_ned for greater clarity. The M&C department played
a vital role in the implementation of the new brand identity across the country.
Apart from the re-branding campaign, the M&C department rolled another big campaign
'Home Loan Balance Transfer Campaign'. The department also rolled out integrated campaign
merging products for six different festivals. Appropriate media vehicles were used for all
Your Bank launched YONO India's only comprehensive, omni channel digital
platform in November, 2017. The M&C department played a key role in this launch, by
way of developing the go-to-market strategy and executing a comprehensive communications
plan across multiple media including digital media.
The M&C department developed and rolled out The Green Marathon' in
collaboration with your Bank's sustainability department. This initiative will raise
consciousness among the Bank's staff and public at large. This activity was conducted in
six cities in two months.
As a transforming economy, India is witnessing several changes across various aspects.
To help build momentum for the Bank's growth, alongside routine marketing activities,
promotion of the Bank's various digital initiatives will hold the centre stage. The core
responsibility of the department will remain towards maintaining favourable brand
perception of SBI among varied cross sections of the country's populace; while playing the
role of a catalyst in marketing its products and services by way of appropriate marketing
and communications strategy implementation.
It would be the department's continued endeavour to enable business units to strategise
and implement cost efficient marketing programs and to enhance your Bank's image among
different stakeholders. Your Bank is committed towards enhancing its brand equity and
af_nity through concerted marketing initiatives.
6. VIGILANCE MECHANISM
At your Bank there are three aspects to the vigilance function Preventive,
Punitive and Participative. During this year Vigilance Awareness Week was observed from
30th October, 2017 to 4th November, 2017, with the theme "My Vision -
Corruption Free India". Vigilance Department has taken initiatives for spreading this
messages through various channels during the Vigilance Awareness Week, 2017, through
Alternate Channels, IVR, Social Media, Gram Sabha by RRBs and Mass pledge at RRB's.
The concept of Whistleblower is another effective tool for Preventive Vigilance. To
highlight any malpractices under Whistle Blower Scheme, a portal has been launched by your
Bank. Whistle Blower can lodge a complaint online and also monitor the progress made in
this regard. There is already a well-de_ned Whistle Blower policy in our Bank, which acts
as a deterrent for the employees to keep themselves away from malicious activities. We
keep the secrecy of the whistleblower and give protection to them so that they continue to
be an effective tool against wrongdoings without fear.
Branches, where certain lapses of grave nature are observed, are identified and
suo-motu investigations are conducted so that possible fraudulent activities could be
checked, and remedial measures are undertaken.
During FY2018, a total of 1,266 cases (908 new cases) were taken up for examination,
out of which 786 cases have since been concluded.
7. ASSET AND LIABILITY MANAGEMENT
Effective Asset and Liability Management (ALM) is vital for sustainable and qualitative
growth of banks. It aims to strengthen Balance Sheet Management by constantly reviewing
the market conditions, capturing the signals emanating, scanning the regulatory
environment and initiating proactive measures for value creation.
The Asset Liability Management Committee (ALCO) of your Bank oversees the Interest Rate
and Liquidity Risks, reviews the components of balance sheet and sets up benchmarks for
efficient management of these risks and constantly monitors them. ALCO inter alia, reviews
the Interest Rate scenarios, pattern of growth of liability products, credit growth,
market behaviour, liquidity management and adherence to the regulatory prescriptions. ALCO
sets the pricing of the liabilities and reviews at monthly intervals, the Marginal Cost of
Funds based Lending Rates (MCLR) in terms of regulatory requirements. Your Bank, a pioneer
in introducing global best practices, has transformed the process of Asset & Liability
Management and rolled out updated Oracle Financial Services Analytical Application (OFSAA)
during the year.
In order to encourage branches to garner stable funds and assess their Profitability
based on cost of funds, a new model for Funds Transfer Pricing based on daily average
balances and dynamic bid/offer curves for pricing loans and deposits raised by branches
has been implemented.
The levels of High Quality Liquid Assets (HQLA) and cash out_ows are effectively
monitored in a highly dynamic environment. As per regulatory requirement, your Bank has
started computing LCR on daily basis. Monitoring LCR in significant currency (US$) is also
undertaken and reviewed by ALCO.
Studies are conducted at regular intervals to assess the behavioural pattern of
non-contractual assets and liabilities, embedded options available to customers,
off-balance sheet exposures, impact of probable loan losses and others. The inputs derived
therefrom are used for effective management of on-balance sheet and off-balance sheet
As part of best Risk Management practices, updated Internal Policies are put in place
on Deposits', Whole Bank Asset and Liability Management', Whole Bank
Stress Testing of Liquidity and Interest Rate Risks' by introducing the concepts such as
reverse stress testing'. As part of contingency planning, Contingency Funding Plan
(CFP) is in place and reviewed regularly.
Your Bank has adopted the advanced approach for assessing the impact on Earnings at
Risk (EaR) and Market Value of Equity (MVE) with pre-de_ned tolerance limits that
determine the risks associated with them and enables the Management to initiate
appropriate preventive steps in a likely scenario of erosion in Net Interest Income.
In line with the regulatory requirements, your Bank has evolved Internal Capital
Adequacy Assessment Process (ICAAP) with robust methodology, responses and an effective
8. ETHICS AND
Banking deals with the trust of the people. Trust calls for the highest level of
ethical conduct from the Banking sector. This is the reason for creation of Ethics &
Business Control Department at SBI. This department came into operation last year under
Chief Ethics Officer, who plays a major role. Ethical conditioning empowers its human
resources and helps in distinguishing right from wrong, in a particular situation.
Your Bank _rmly believes that ethical character is shaped, reinforced and in_uenced by
the decisions we make every day. In this context, sustained promotion of ethical awareness
will give impetus to the overall operating culture and take the Bank to the next level by
strengthening its moral muscles. Towards this purpose, best international practices are
being learnt, technology being leveraged and ethics being encouraged as a part of regular
conversations at different organisational layers; and a normative sense of congruence is
being developed across various functions in the Bank.
Your Bank has already unveiled its New Vision, Mission and Values Statements after a
gap of almost 10 years to re_ect its contemporary persona as an agile and tech savvy bank.
9. CORPORATE SOCIAL RESPONSIBILITY
Your Bank believes that it has a solemn duty to make sustainable social change in the
lives of the less fortunate and underprivileged members of the society. Your Bank always
places the interest of the common man, especially the most marginalised, at its core. Your
Bank earmarked 1% of the previous year's net Profit as the budget for CSR spend for the
year. Its CSR activities are widespread and deep-rooted and have made true difference in
the lives of thousands from the underserved and downtrodden communities. CSR is a
continuing commitment of your Bank for developing the quality of life of the community and
society as a whole.
Skill Development and Livelihood Creation
Culture, Sports and others
CSR SPEND DURING FY2018
The CSR spend of the Bank for the FY2018 stood at Rs. 112.96 crore. This is the sixth
successive year, where your Bank's CSR spend has crossed the mile stone of Rs. 100.00
crore. The sector wise spend is as under:
National Health Policy, 2017 was approved by the Government in March, 2017 with an
objective to achieve highest possible level of good health and well-being. It seeks to
achieve universal access to quality health care. However, since long healthcare sector has
remained a thrust area for your Bank's CSR activity. Your Bank provides basic
infrastructure to improve the conditions of the common man. To deliver quality healthcare
to those belonging to underprivileged and economically weaker sections of the society.
Your Bank has supported large number of hospitals. The major initiatives of your Bank in
health care sector are as under:
Ambulances and Medical Vans: Your Bank has donated Rs. 2.88 crore to over 23
charitable organisations for acquiring Ambulances and Medical Vans
Health Equipment and Surgeries: Your Bank has donated Rs. 5.33 crore to over 35
charitable organisations/hospitals for acquiring various medical/surgical equipment like
Stress Test Machine, Dialysis Machine, BIPAP Ventilators, Digital X-Ray Machines,
Artificial limbs, Automated Bio-chemistry Analysers, Surgical Microscopes and Retinal
Equipment. This has improved the capacity and potential of the hospitals to serve large
number of deprived patients.
Community Outreach Programmes:
Your Bank organised camps to focus on curative and preventive healthcare for the under
privileged rural population. The areas covered are mentioned below:
Reproductive healthcare check-up
Basic health check-up (Blood Pressure, HB and others)
Diabetes check up
Mammography for women
Your Bank always strives to support education of weaker social group in remote,
unreachable and underdeveloped area. The areas covered are given below:
Donated computers and printers to various schools
Provided water _lters for access to clean drinking water
Provided toilets to the schools
Persons with Disabilities (PwDs) were given vocational training
Donated Rs. 82 lakh for providing school buses/vehicles for transportation
facilities to underprivileged children
DRINKING WATER AND SANITATION
Your Bank is committed to the Government's mission of "Swachh Bharat" and has
undertaken several initiatives across the country including building toilet blocks;
providing sanitary napkin vending machines and incinerators, dumper bins and dust bins,
among others. Also, provision of drinking water (R.O.) and toilets in schools is being
ENVIRONMENT AND SUSTAINABILITY
Your Bank is committed to environment protection and contributes positively to reduce
the carbon footprint. Responsible interaction with environment to avoid depletion and
degeneration of natural resources and maintain long term quality of the environment
is a priority for your Bank.
Your Bank has contributed Rs. 2.05 crore towards the following:
Acquiring solar power plant, solar water heater and solar street lamps
Maintenance of parks and gardens
Donating battery operated vehicles
SBI CHILDREN'S WELFARE FUND
Your Bank constituted SBI Children's welfare Fund as a Trust in 1983, which extends
grants to Educational Institutions engaged in the welfare of underprivileged children like
orphans, destitute, and physically challenged. The corpus of the fund is made by the staff
members and matching contribution is provided by your Bank. During FY2018, your Bank has
donated Rs. 98 lakh to various educational institutes all across the country.
SKILL DEVELOPMENT INITIATIVES AND LIVELIHOOD CREATION
Rural Self Employment Training Institutes (RSETIs): India is one of the youngest
nation in the world with more than 54% of its population below 25 years of age.
Employability of the growing young demography is one of the important factors in the
economic development of the country. The skill development initiatives support the supply
of trained manpower.
Your Bank has set up 151 Rural Self Employment Training Institutes (RSETIs) across the
country as institution to help mitigate the unemployment and underemployment problem among
youth in the country.
Your Bank has contributed Rs. 9.03 crore for construction of 9 RSETI buildings. The
recurring expenditure for skill development programs for youth was
Rs. 47.52 crore at 151 RSETIs of your Bank across the country.
As a part of mission to provide the entire gamut of financial services across India,
the State Bank Group, through its various subsidiaries, provides a whole range of
financial services, including Life Insurance, Merchant Banking, Trustee Business, Mutual
Funds, Credit Card, Factoring, Security Trading, Pension Fund Management, Custodial
Services, General Insurance (Non Life Insurance) and Primary Dealership in the Money
Non- Banking Subsidiaries:
||( Rs. crore)
||Name of the Subsidiary Company
||Ownership (SBI interest)
||% of Ownership
||Net Profit (Losses) for FY2018
||SBI Capital Markets Ltd.
||SBI DFHI Ltd.
||SBI Mutual Fund Trustee
||Company Pvt Ltd.
||SBI Global Factors Ltd.
||SBI Pension Funds Pvt. Ltd.
*Group holding of SBI is 100% in SBI Pension Funds Pvt. Ltd. (SBI 60%, SBI MF and SBI
Capital Markets 20% each) and in SBI DFHI State Bank holding is 72.17% (SBI 69.04%, after
merger of Associate Banks and SBI Capital Markets 3.13%).
Non- Banking Subsidiaries: Joint Ventures
||( Rs. crore)
||Name of the Subsidiary Company
||Ownership (SBI interest)
||% of Ownership
||Net Profit (Losses) for FY2018
||SBI Funds Management
||SBI Cards & Payment
||Services Pvt. Ltd.
||SBI Life Insurance
||SBI-SG Global Securities
||Services Pvt. Ltd.
||SBI General Insurance
||SBI Business Process
||Mgt. Services Pvt. Ltd.*
* Name of "GE Capital Business Process Mgt. Services Pvt. Ltd." has been
changed to "SBI Business Process Mgt. Services Pvt. Ltd."
1. SBI CAPITAL MARKETS LIMITED (SBICAP)
SBICAPs is India's leading investment banker,offeringentirebouquetofinvestment banking
and corporate advisory services to varied client base across three product groups
Infrastructure, Equity Capital Markets and Debt Capital Markets. These services include
Project Advisory, Loan Syndication, Structured Debt Placement, Mergers & Acquisitions,
Private Equity, Restructuring Advisory, Stressed Assets Resolution, IPO, FPO, Rights
Issues, Debt and Hybrid Capital raising.
On a standalone basis, SBICAPs posted a PBT of Rs. 349.35 crore during FY2018 as
against Rs. 312.57 crore during the FY2017 and a PAT of Rs. 244.64 crore for FY2018
against Rs. 217.95 crore in FY2017. On a consolidated basis it has posted a Profit of
Rs. 327.32 crore as against Rs. 251.80 crore in the previous year.
SBICAPS declared dividend at 225% during FY2018 as against 200% in FY2017.
A. SBICAP SECURITIES LIMITED (SSL)
SSL, a wholly owned subsidiary of SBI Capital Markets Limited, besides offering equity
broking services to retail and institutional clients both in cash as well as in Futures
and Options segments, is also engaged in sales and distribution of other financial
products like Mutual Funds, Tax Free Bonds, Home Loan, Auto Loan, Tractor Loan, among
SSL has over 100 branches and offers Demat, e-broking, e-IPO and e-MF services to both
retail and institutional clients. SSL currently has more than 15 lakh clients. The Company
has booked gross revenue of
Rs. 357.56 crore during FY2018 as against
Rs. 250.35 crore in FY2017.
B. SBICAP VENTURES LIMITED (SVL)
SVL is a wholly owned subsidiary of SBI Capital Markets Limited. DFID (Department for
International Development) has joined hands with the SBI group to set up the "Neev
Fund" which is being managed by SBICAP Ventures Limited. SVL is acting as the Asset
The Neev Fund had its Initial close on 10th April, 2015 and current corpus
of the Fund is Rs. 469.39 crore. Fund will be invested in Infrastructure sectors such as
renewable energy, water and sanitation, agricultural supply chain in 8 identified states
of India (Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, Odisha, Rajasthan, Uttar Pradesh
and West Bengal). SVL has started earning Management Fees.
C. SBICAP (UK) LIMITED (SUL)
SUL is a wholly owned subsidiary of SBI Capital Markets Limited. SUL is positioning
itself as a relationship out_t for SBI Capital Markets Limited in UK and Europe.
Relationships are the business products of SBICAP.
D. SBICAP (SINGAPORE) LIMITED (SSGL)
SSGL, is a wholly owned subsidiary of SBI Capital Markets Limited. SSGL commenced
business from December 2012. Relationships are being built with FIIs, Financial
Institutions, Law Firms, Accounting Firms, etc. to market the business products of SBICAP.
It has been specialising in marketing of Foreign Currency Bonds and securing clients for
E. SBICAP TRUSTEE CO. LIMITED (STCL)
SBICAP Trustee Co Limited (STCL), is a wholly owned subsidiary of SBI Capital Markets
Limited. STCL commenced security trustee business with effect from 1st August,
2008. STCL posted Net Profit of Rs. 11.90 crore during FY2018 as against Rs. 11.68 crore
during FY2017. STCL successfully launched an Online Will Creation service for the
individuals in the name of My Will Service Online'. It also launched its
Trustee Enterprise Management System' an integrated system to address all the
trustee related operations and thus has become the first and only Trustee Company in India
to have full automation across all trustee related operations.
2. SBI DFHI LIMITED (SBI DFHI)
SBI DFHI Limited is one of the largest standalone Primary Dealers (PD) with a pan India
presence. As a Primary Dealer (PD) it is mandated to support the book building process in
primary auctions and provide depth and liquidity to secondary markets in G-Sec. Besides
Government securities, it also deals in money market instruments, non G-Sec debt
instruments, etc. As a PD, its business activities are regulated by RBI.
SBI group holds 72.17% share in the Company. The Company posted Net Profit of Rs. 32.07
crore in the FY2018 as against Rs. 176.44 crore in the FY2017. Total balance sheet size
was Rs. 5,659.46 crore as on 31st March 2018 as against Rs. 3,187.70 crore as
on 31st March 2017.
3. SBI CARDS & PAYMENTS SERVICES PRIVATE LIMITED (SBICPSL)
SBI Cards and Payment Services Private Limited is a joint venture between State Bank of
India and the Carlyle Group wherein SBI holds 74% stake and CA Rover Holdings (An af_liate
of Carlyle) holds 26% stake. SBICPSL is a NBFC and is in the business of issuing credit
cards in India. During the year, SBI increased its stake in the company from 60% to 74% by
buying out shares from exiting partner GE Capital.
During the FY2018, the Company's Card base has grown by 37% YoY with total number of
credit cards reaching to a level of 62.58 lakh as at 31st March 2018. The
Spends on card witnessed a YoY growth of 73% to reach a level of Rs. 79,808 crore for the
same period. The company is positioned at Rank #2 with 16.75% Spends Share and 16.42%
Cards base as per RBI report for Mar'18 (Previous Year 13.06% in terms of Spends and
15.34% in terms of Cards base as per RBI report for March'17) The company delivered Profit
after Tax of Rs. 363 crore for the FY17-18 (PBT of
Rs. 776 crore). This includes one off adverse impact of Rs. 219.9 crore due to change
in accounting policy. Excluding the one off PBT has grown by ~30% YoY.
During the period the Company received many awards which includes:
SBI Unnati Card wins of SKOCH Financial Inclusion Award at the 48th SKOCH Summit
Corporate Card Team has been awarded by VISA for becoming "No. 1 Commercial
Card Issuer" for VISA India
SBI Card awarded with Best Data Quality Award' in NBFC category by
4. SBI BUSINESS PROCESS AND MANAGEMENT SERVICES PRIVATE LIMITED (SBIBPMSL)
(Formerly GE Capital Business Process and Management Services Pvt Ltd)
SBIBPMSL is a joint venture between State Bank of India and the Carlyle Group, wherein
SBI holds 74% stake and CA Rover Holdings (An af_liate of Carlyle) holds 26% stake.
SBIBPMSL provides back end services and solutions to SBICPSL. During the year, SBI
increased its stake in the company from 40% to 74% by buying out shares from exiting
partner GE Capital.
During the FY2018, the Company generated PAT of Rs. 66 crore at a YoY growth rate of
During FY2018, the Company undertook following key initiatives:
Bharat QR launched on Mobile Application to enable transactions through mobile
Instant Payment Credit functionalities made available when online payment done
through 3rd party
New features like Card full statement and one click Loan, Flexi-pay booking are
now available on MOBILE Application
Digital for Customers SBI mobile app "#1 rated Mobile
5. SBI LIFE INSURANCE COMPANY LIMITED (SBI LIFE)
SBI Life Insurance is a joint venture between State Bank of India (SBI) and BNP Paribas
Cardif S. A. During the year ended 31st March, 2018, Initial Public Offer of
120,000,000 equity shares of face value of Rs. 10 each of the Company at Offer Price of
Rs. 700 per equity shares aggregating to Rs. 8,388.73 crore (net of employee discount)
through an Offer for Sale by State Bank of India and BNP Paribas Cardif S.A. of 80,000,000
equity shares and 40,000,000 equity shares, respectively was completed. The equity shares
of the Company were listed on National Stock Exchange Limited (NSE') and Bombay
Stock Exchange Limited (BSE') on 3rd October, 2017.
SBI owns 62.1% of the total capital and BNP Paribas Cardif S. A. holds 22%, while
remaining 15.9% share is held by public. SBI Life has a unique multidistribution
model encompassing vibrant Bancassurance, Retail Agency, Institutional Alliances and
Corporate Solutions distribution channels.
The Company has proven its market leadership in FY2018 with number 1 position in
Individual New Business Premium among private insurers.
The company witnessed a 30% growth in Retail New Business Premium (NBP) vis--vis the
private industry growth of 26%. The market share of SBI Life Retail New Business Premium
(NBP) among all private players as on 31st March, 2018 is 21.8% vis-a-vis 20.7%
for last year.
SBI Life witnessed a PAT of Rs. 1,150 crore in FY2018 against Rs. 955 crore in FY2017.
AUM of the Company recorded a growth of 19% at Rs. 116,261 crore as on 31st
March, 2018 as compared to Rs. 97,737 crore as on 31st March, 2017.
Leveraging wider reach achieved through its network of 825 offices, SBI Life has
systematically brought large rural areas under insurance. The Company has sold 24% of
total policies in this segment in FY2018. A total of 649,599 lives covered by the company
are from the underprivileged social sector.
Awards and recognitions received during the year include:
1. Brand of the Year 2016-17 Award in the Insurance Category by WCRC.
2. Ranked #1 (in a jointly held spot) in Customer loyalty in the Life Insurance
Category in a survey conducted across more than 15 key cities in India, according to
Kantar IMRB Survey 2017.
3. Won the "DSCI Excellence Awards 2017" under category "Best Practices
for Insurance Sector" for the year 2017, by the Jury under the Chairmanship of Mr.
Pramod Bhasin, Founder & Non Executive, Vice Chairman of Genpact.
4. Awarded India's Leading insurance Company Life' (Private sector) at the
Dun & Bradstreet BFSI Summit 2018'.
5. Adjudged as one of the Most Trusted Brand, 2017' for the Seventh consecutive
year by The Economic Times Brand Equity - Nielsen survey.
6. SBI FUNDS MANAGEMENT PRIVATE LIMITED (SBIFMPL)
SBIFMPL, the Asset Management Company of SBI Mutual Fund, is the 5th largest Fund House
in terms of Average "Assets Under Management" and a leading player in the market
with over 7.8 million investors. SBIFMPL is the largest ETF manager in India with over 50%
market share in fast growing ETF market. SBIFMPL posted a PAT of Rs. 331.03 crore during
the year ended Mar 2018 as against Rs. 224.32 crore earned during the year ended March
2017. During the current year, SBI MF crossed the historic milestone of INR 2 Trillion AUM
mark. The average "Assets Under Management" (AUM) of the Company during the
quarter ended March 2018 were Rs. 2,17,649 crore with a market share of 9.44% as against
the average assets under management of Rs. 1,57,025 crore with a market share of 8.58%
during the quarter ended March, 2017. The Company has a fully owned foreign subsidiary
viz. SBI Funds Management (International) Private Limited, which is based at Mauritius and
manages Off- shore Fund. SBIFMPL also provides Portfolio management services (PMS) and
Alternative Investment Funds (AIF). During the year the Company's gross sales through
digital platforms crossed Rs. 10,000 crore.
7. SBI GLOBAL FACTORS LIMITED (SBIGFL)
SBIPFPL has been appointed as the SBIGFL is a leading provider of factoring services
for domestic and international trade. SBI holds 86.18% share in the Company. The Company's
services are especially suitable for MSME clients for freeing up resources locked in book
debts. By virtue of its membership of Factors Chain International (FCI), the Company is
able to ameliorate credit risk from export receivables under the 2 factor model.
The Company reported a PBT of Rs. 2.08 crore during the year ended FY2018 (PY
PBT Rs. 3.25 crore) & PAT (Loss) of Rs. 3.24 crore (PY PAT Rs. 1.01 crore).
Turnover for 12 months ended FY2018 is Rs. 3,555 crore as compared to turnover of Rs.
3,047 crore in previous year (i.e. an increase of 17%). FIU as on 31st March
2018 is Rs. 1,276 crore as compared to Rs. 1,059 crore as on 31st March
2017. Turnover in EF under
2 Factor Model for 12 months ended FY2018 is equivalent to EUR 59 Mio (PY EUR 42 mio).
In INR terms, the EF turnover touched Rs. 452 crore for 12 months ended FY2018, as against
Rs. 321 crore in previous year, i.e. an increase of 41%.
8. SBI PENSION FUNDS PRIVATE LIMITED (SBIPFPL)
SBIPFPL has been appointed as the Pension Fund Managers (PFM) along with 8 others to
manage the pension corpus under National Pension System (NPS). SBIPFPL is one of the three
PFM appointed by the Pension Fund Regulatory & Development Authority (PFRDA) for
management of Pension Funds under the NPS for Central Government (except Armed Forces) and
State Government employees and one of eight PFM appointed for management of Pension Funds
under the Private Sector. The total Assets Under Management
(AUM) of the company as on 31st March, 2018 was Rs. 89,283 crore (YoY growth
of 34%) against Rs. 66,723 crore on 31st March, 2017.
The Company maintained lead position amongst Pension Fund Managers in terms of AUM in
both Government and Private Sectors. The overall AUM market share in Private Sector was
58%, while in the Government Sector it was 35%.
The Company was adjudged winner in the "Pension Fund House Category" by
Outlook Money for the year 2017. Awards by Outlook money have been adjudged to the Company
for 3rd consecutive year in a row.
9. SBI GENERAL INSURANCE COMPANY LIMITED (SBIGIC)
SBIGIC is a joint venture between State Bank of India and IAG Australia in which SBI
holds 74% stake. The cornerstone of the Company's growth aspiration is focussed on the
Banca channel whilst developing other channels and products that meet business objectives
and drive Profitable growth. The Company has entered in to strategic tie-ups with three
large car manufactures to drive growth in the Motor portfolio.
Gross Written Premium (GWP) stood at Rs. 3,553 crore for FY2017-18. In the seven years
of operation, for the first time in FY2017 SBIG had achieved Profit, to the tune of Rs.
396 crore. The Company recorded 36.1% growth in GWP YoY against an industry growth of
17.5% including crop whereas excluding Crop SBIGIC recorded growth of 24.0% against
Industry growth of 17.1% for FY2017-18. SBIGIC has grown by 124.8% in Crop Insurance in
FY2017-18 by participating in the PMFBY schemes and extending our geographies. The Overall
market share among all general insurance companies stands at 2.35% and 5.42% among private
insurers. The Company's market ranking is 14th in the industry and 9th among the private
players in FY2017-18. SBIGIC occupies 2nd position in "Personal Accident" among
private insurers & 4th position in the industry in FY2018. The company ranks 3rd in
"Fire" among private insurers and 7th position in the industry in FY2018. Share
of health business decreased marginally from 14.3% to 13.4%. However, there is a growth to
the tune of 27.1% for FY2018 against Industry growth of 22.4%.
SBI General wins the ET Best BFSI Brands Award 2018. The ISO 27001:2013 certification
awarded to SBI General for its Information Security practices. SBI General Insurance was
awarded the Bancassurance Leader award in the 7th edition of Insurance awards organised
10. SBI SG GLOBAL SECURITIES SERVICES PRIVATE LIMITED (SBI-SG)
SBI-SG, a joint venture between State Bank of India and Societe Generale with 65%
holding by SBI. The Company was set up to offer high quality custody and fund
administration services to complete the bouquet of financial services offered by the SBI
Group. SBI-SG commenced commercial operations in 2010. The Company's Net Profit was Rs.
26.03 crore in FY2018 as against Rs. 11.74 crore in FY2017. Accumulated Profit is Rs. 45
Average Assets Under Custody in March 2018 rose to Rs. 4,82,435 crore from Rs. 3,27,158
crore as in March 2017, while the Average Assets Under Administration were at Rs. 2,54,089
crore in March 2018 as against Rs. 1,83,779 crore in March 2017.
SBI-SG has been rated as one of the leading custodians in India in the Global Custodian
magazine's Agent Banks and Emerging Markets Survey 2017.
SBI-SG has been rated #1 custodian in India in the Global Investor/ISF Sub-Custody
survey for 2017.
11. SBI INFRA MANAGEMENT SOLUTIONS PVT. LTD.
SBI Infra Management Solutions Private Limited, incorporated on 17th June,
2016, is engaged in providing real estate management services to State Bank of
The Company commenced its pilot operations w.e.f. 8th March, 2017 at six
centres in India i.e. Greater Mumbai and Navi Mumbai, Twin City Ahmadabad and Gandhinagar,
Greater Chennai, Kolkata Metropolitan area, Greater Hyderabad and Delhi NCR for some
benchmark value. The Company is at present efficiently handling more than 60 projects of
construction/ interior/retro_tting/ purchasing/leasing etc.
After successful run of pilot projects, the Company has extended all the activities
related to premises and estate irrespective of value of all the six circles (situated at
aforesaid six centres) and corporate centre establishment from January 2018. The Company
is also likely to expand its operations further on pan India basis by the mid of financial
12. SBI FOUNDATION
SBI Foundation was established by State Bank of India in 2015 as a Section VIII company
under Companies Act (2013) to undertake the CSR activities of SBI and its subsidiaries in
a planned and focused manner.
SBI Foundation aims to give back to the society by working towards the socioeconomic
well-being of the marginalised and vulnerable communities. Your Bank is actively working
towards impacting people on a grassroots level across PAN India with a vision to provide
Service Beyond Banking'.
SBI Foundation is presently working on various projects and many initiatives has been
taken to build a momentum for a transforming India by creating an inclusive development
paradigm, that serves all Indians without any discrimination on the basis of regional,
linguistic, caste, creed, religious or other barriers.
The CSR budget for FY2018 was Rs. 20 crore, the grant received was Rs. 25.71 crore
(including grant received from subsidiaries). SBI Foundation sanctioned 28 proposals
amounting to Rs. 49.53 crore. The total disbursement during the year stood at Rs. 27.18
The CSR activities are undertaken in the following focus areas:
The vast majority of rural population is deprived of basic medical facilities due to
lack of healthcare infrastructure in various parts of the country. SBI Foundation is
committed to contribute positively to United Nation's Sustainable Development Goals
(SDGs)-Goal#3: Good Health and Well Being by bringing about positive changes in the lives
of underprivileged sections of society by providing free access to quality healthcare.
To contribute towards improve the health scenario, your Bank has undertaken the
following CSR projects through SBI Foundation.
a. Sishu Rakhsha: A project to curtail infant mortality rate by providing
complete screening facilities and immediate treatment to the infants.
b. SBI Life: An initiative to prevent and control of Thalassemia diseases by
facilitating Thalassemia tests to the public.
c. Cancer Care: A project which aims to prevent and control of Breast and
Cervical Cancer among women.
d. SBI Darpan: This project works on mitigating damages of Sickle Cell Anaemia
e. SBI Umeed: The objective of the program is to curtail maternal, infant
mortality and morbidity in expecting mothers and their infants by providing the preventive
care information through mobile call facilities.
f. SBI Eye care: This initiative aims to provide free cataract surgeries in the
underprivileged rural areas of India.
Education is one of the most powerful and proven vehicle to bring transformational
change in the development landscape. Education plays a vital role in improving the
standard of life of an individual and is viewed as an effective tool for bringing social
economic changes. Scarcity of resources and lack of infrastructure are the major
hindrances in the education sector in India. SBI Foundation is committed to contribute
positively to United Nation's Sustainable Development Goals (SDGs) Goal#4: Quality
Education. Through SBI Foundation, your Banks has initiated various projects as mentioned
a. Gyanshala: This is a middle school education project for urban slum children
(Grade IV to Grade VIII) to provide them quality education as other privileged children
receive in their schools.
b. Beti Padhao Kendras: Under this initiative, Beti Padhao centres were started
with an aim to provide basic education (up to Grade V) to girl children in remote rural
c. SBI Udaan: This project works towards quality education along with Arts,
Crafts and Sports development for children in slums and remote areas.
d. Shiksha Sahay: This project supports tribal school for maintaining the
quality education and other basic needs.
C. ENVIRONMENT AND SUSTAINABILITY
Your Bank is committed to environment protection and contribution to reduce the carbon
a. Waste to gold: A project that aims to motivate and develop the skills of
vulnerable youth to address waste management in the city; and develop small sustainable
businesses for their livelihood as well. b. SBI Corbett: Under this project, SBI
Foundation is providing villages a sustainable waste management system and conducting
trainings of SHG Workers to provide awareness in nearby schools and hotels.
D. ARTS, CULTURE, HERITAGE AND OTHERS
To achieve the dual goal of preservation of culture & heritage and contribute to
The Swachh Iconic Places', SBI Foundation has started two projects under this
category as mentioned below:
a) Swachh Iconic CSMT: This initiative aims for conservation and restoration of
south and east faade of the heritage building at Chhatrapati Shivaji Maharaj Terminus
Mumbai (A UNESCO World Heritage Site). b) SBI Eklavya: SBI Foundation is providing
basic sports facility to the children under ashram schools of Marathwada region of
The vision is to enable the Persons with Disabilities (PwDs) to avail better livelihood
opportunities by market linked training and jobs in the organised sector. Therefore, to
support the PwDs your Bank has started the following projects:
a. Project Parivarthan: The initiative aims to make inclusive employment of the
underprivileged and PwDs the norm in companies by providing them market-oriented
b. Project SBI Shravan Shakti: Under this initiative, your Bank has facilitated
_tment of Cochlear Implants to hearing impaired children.
c. Project Swabhiman: This project aims to provide job linked training to PwDs
by establishing and running skill centres.
SBI Youth for India Fellowship program:
SBI Youth for India (YFI) is a Fellowship program initiated, funded and managed by the
SBI Foundation in partnership with reputed NGOs. It provides a framework for India's best
young minds to join hands with rural communities, empathise with their struggles and
connect with their aspirations
Under the initiative, SBI Foundation has partnered with the reputed NGOs, engaged in
development work in rural areas, to deploy the youth enrolling for the fellowship, for
conceiving and working on innovative projects. YFI has an alumni base of 184 passionate
change makers, 60% of Alumni are associated with the development sector after the
Centre of Excellence for PwDs (CoE):
Majority of persons with disabilities can lead a better quality of life if they have
equal opportunities and effective access to rehabilitation measures. There has been an
increasing recognition of abilities of persons with disabilities and emphasis on
mainstreaming them in the society based on their capabilities. It was conceptualised with
a goal to be a centralised support centre for persons with disabilities.
CoE primarily works on empowering PwDs through skill enhancement to make significant
and measurable improvement that enables individuals to enjoy a more productive and
satisfying life by optimising their cognitive, physical, social and vocational
CoE has conducted five inclusive training programs for employees with disabilities and
their trainers. Seven public sector Banks participated in the training program. CoE has
also signed MoUs with Bank of Baroda and Union Bank of India for institutionalisation of
inclusion and empowerment of employees with disabilities. CoE has set up skilling centres
in various cities for placement linked skill development of PwDs.
SBI Gram Seva: India resides in its villages, and for the holistic development of
the villages, SBI Foundation has adopted 10 Gram panchayats covering 50 of villages in 6
states of India.
The objectives of the flagship program are: a. To link and leverage the specific
government schemes/services to villages (families) b. To lay emphasis on digitalisation
and create awareness about online service (including online banking) c. Improve the basic
infrastructure of villages (set up computer labs, community rooms and others) d. Encourage
Panchayat/Village self-governance and create environment for participatory efforts by the
people for rural asset creation and community development. e. Integrated village
development is aimed to promote education for all, environment protection, livelihood
development, digitalisation in Gram Panchayat, skill development and improvement of
preventive and primary health care in villages.
Awards and Accolades
SBI Foundation has won seven national level awards during the year for its CSR
|Name of the Award
|Golden Globe Tiger Award for Excellence & Leadership in CSR
||Best CSR Practices
|Golden Globe Tiger Award for Excellence & Leadership in CSR
||Innovation in CSR
|Golden Globe Tiger Award for Excellence & Leadership in CSR
||CSR Leadership Award
|ET Now presents CSR Leadership Awards
||Best CSR Practices
|ET Now presents CSR Leadership Awards
||Innovation in CSR
|ET Now presents CSR Leadership Awards
||Promoting Employment for the Disabled
|Bureaucracy Today CSR Excellence Awards
||Care of Senior Citizens
|FICCI CSR Awards
||Appreciation Plaque in the Health Category
VI. RESPONSIBILITY STATEMENT
The Board of Directors hereby states:
i. that in the preparation of the annual accounts, the applicable accounting standards
have been followed along with proper explanation relating to material departures; ii. that
they have selected such accounting policies and applied them consistently and made
judgements and estimates as are reasonable and prudent, so as to give a true and fair view
of the state of affairs of your Bank as on the 31st March 2018, and of the
Profit and loss of Your Bank for the year ended on that date; iii. that they have taken
proper and sufficient care for the maintenance of adequate accounting records in
accordance with the provisions of the Banking Regulation Act, 1949 and State Bank of India
Act, 1955 for safeguarding the assets of your Bank and preventing and detecting frauds and
other irregularities; iv. that they have prepared the annual accounts on a going concern
basis; v. that the internal financial controls had been laid down, to be followed by your
Bank and that such internal financial controls are adequate and were operating
effectively; and vi. that proper system had been devised to ensure compliance with the
provisions of all applicable laws and that such systems were adequate and operating
During the year, Shri M. D. Mallya and Shri Deepak I. Amin retired from the Board
w.e.f. 25th June 2017, consequent upon completion of their term. Shri Sanjiv
Malhotra was reappointed as Independent Director u/s 19(c) of the SBI Act w.e.f. 26th
June 2017 on the Board. Shri Bhaskar Pramanik, Shri Basant Seth and Shri Pravin Kutumbe
were elected by the Shareholders as Directors on the Board u/s 19(c) of the SBI Act w.e.f.
26th June 2017. Smt. Anjuly Chib Duggal retired from the Board w.e.f. 31st
August 2017 consequent upon her retirement as Secretary, Department of Financial Services
and Shri Rajiv Kumar was nominated as GOI Nominee Director in her place w.e.f. 12th
Smt. Arundhati Bhattacharya, Chairman retired on completion of her tenure on 6th
October 2017 and Shri Rajnish Kumar was appointed as Chairman in her place w.e.f. 7th
Dr. Purnima Gupta has been nominated by GOI as Director u/s 19(d) of the SBI Act w.e.f.
1st February 2018. Shri Pravin Kutumbe resigned from the Board w.e.f. 8th
March 2018 consequent upon his appointment as Whole-Time Member in IRDA.
The Directors place on record their appreciation for the contributions made by the
outgoing Chairman, Smt. Arundhati Bhattacharya and Directors, namely, Shri M. D. Mallya,
Shri Deepak I. Amin, Smt. Anjuly Chib Duggal and Shri Pravin Kutumbe, to the deliberations
of the Board. The Directors welcome the new Chairman, Shri Rajnish Kumar and Directors,
Shri Bhaskar Pramanik, Shri Basant Seth, Shri Rajiv Kumar and Dr. Purnima Gupta on the
The Directors also express their gratitude for the guidance and co-operation received
from the Government of India, RBI, SEBI, IRDA and other government and regulatory
The Directors also thank all the valued clients, shareholders, banks and financial
institutions, stock exchanges, rating agencies and other stakeholders for their patronage
and support, and take this opportunity to express their appreciation for the dedicated and
committed team of employees of the Bank.
For and on behalf of the
Central Board of Directors
Date: 22nd May, 2018