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State Bank of India.

BSE: 500112 Sector: Financials
NSE: SBIN ISIN Code: INE062A01020
BSE 00:00 | 24 Apr 2020 State Bank of India
NSE 05:30 | 01 Jan 1970 State Bank of India

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OPEN 184.50
VOLUME 4049624
52-Week high 373.70
52-Week low 173.60
P/E 16.58
Mkt Cap.(Rs cr) 160,375
Buy Price 180.00
Buy Qty 909.00
Sell Price 180.40
Sell Qty 395.00
OPEN 184.50
CLOSE 186.80
VOLUME 4049624
52-Week high 373.70
52-Week low 173.60
P/E 16.58
Mkt Cap.(Rs cr) 160,375
Buy Price 180.00
Buy Qty 909.00
Sell Price 180.40
Sell Qty 395.00

State Bank of India. (SBIN) - Director Report

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Company director report



Global economic momentum eased moderately in 2018 with GDP growthestimated at 3.6% as per IMF. Persistent moderation in China owing to financialtightening amidst rising shadow banking and local government debt coupled with continuingtrade conflict with the US had a dampening effect on overall emerging market and developingeconomies' performance.

As far as developed economies were concerned US economic activitypicked up against the backdrop of fiscal stimulus. However there now seems to be a question mark over thecontinuation of such momentum. The Euro Area grew less than expected with uncertaintyover Brexit and threat of US tariffs on EU automobiles taking a toll on theirmanufacturing sector.

BRICS countries were also no exception to this trend. For example dragon mining construction and agriculture pulled down economic growth in South Africa to amere 0.8%. Even economic activity in Brazil remained subdued owing to truck drivers'strike and restrained public and private consumption spending.

Global merchandise trade is also expected to have slowed down markedlyto around 3.9% in 2018 from 4.7% in 2017. Furthermore as per the world trade outlookindicator which gives the "real time" information on the trajectory of worldtrade relative to recent trends the recent level of 96.3 (the lowest since March 2010)indicates that trade growth in coming months will be below long term averages.

Meanwhile financial conditions tightened moderately in 2018 with monetarynormalisation in the advanced economies. The US Fed raised the interest rate four timeslast year consequent to which capital outflows increased from developingeconomies. However financial volatility has reduced after the Fed adopted a dovish stance.

Going forward with waning fiscal stimulus in the US and weakerEuropean economy global growth slowdown is expected to continue in 2019 with GDP growthof around3%. No deal-Brexit lingering of trade tensions between the US and China and more thanexpected tightening of global financing conditions remain the key risks to growth prospects.


After decelerating sharply from 8.2% in FY2017 to 7.2% in FY18 and thento 7.0% in FY2019 India's GDP growth is expected to grow by 7.2% (RBI projection) inFY2020. Going forward several factors appear crucial regarding economic growth. Firstprivate consumption is expected to get a fillip from measures such as publicspending in rural areas and increase in disposable income of households due to income taxbenefits. Second resolution of stressed assets and decline in the level ofnonperforming advances (NPAs) on Bank balance sheets is expected to improve credit flows whichaugurs well for economic activity. Third improving capacity utilisation tailwinds fromlower oil prices and rate cuts are likely to support economic activity. Fourth projectionof ‘near normal' monsoon this year with weak El Nio will be helpful for foodgrains production and subsequently for food inflation.

Nevertheless a few downside risks also persist both on the domesticand global fronts: (i) the slowing down of the global economy may impact prospects ofIndia's exports and the risk may get accentuated if trade tensions remain unresolvedand (ii) investment has been supported largely by government-led infrastructure spendingand there is now a dire need to boost private investment across sectors.

Growth in agriculture and allied activities decelerated in H2 FY2019 onaccount of a number of factors operating in conjunction viz. the poor performance of thesouthwest and northeast monsoons lower water reservoir levels in the eastern and westernregions low prices for farm produce depressed by the supply glut caused by two bumperharvests in succession and the lack of agricultural markets to deal with large excesssupplies. As monsoon is projected to be near normal (due to weakening of El Nio) it mayhave positive impact on agricultural production going forward.

In the industrial sector GVA decelerated to 6.4% in H2 FY2019 from8.1% in H1 and 8.3% a year ago pulled down by a fall in the growth of manufacturingactivity as subdued demand was reflected in a moderation in sales growth. Activity in the services sectorpicked up and became broad-based in H2 FY2019 boosted by resilience in constructionactivity and acceleration in financial real estate and professional services and publicadministration defence and other Services.

Headline CPI inflation has declined sharply since mid-2018 driven by the sustained fallin food inflation the waning away of the direct impact of house rent allowances forcentral government employees and more recently by a sharp fall in fuel inflation. Owingto that the average CPI inflation for FY2019 stood at 3.43% compared to 3.58% in FY2018.

The outlook for inflation may be impacted by various upside and downside risks. The majorupside risks include: geopolitical tensions and supply disruptions in the global crude oilmarket volatility in international and domestic financial markets the risk of a suddenreversal in the prices of volatile perishable food items fiscal slippages andpossibility of below-normal monsoon this year. Among the downside risks are: a sharperthan anticipated slowdown in global growth and its softening impact on crude oil and othercommodity prices and the persistence of a food supply glut. For FY2020 we expect averageinflation would be less than 4%.

Against the backdrop of slowing global trade and commerce-inhibitingtrade tensions India's merchandise exports Y- ( o-Y) grew by 9.1% in FY2019vis--vis 10.0% in FY18. An important feature of India's export basket in recentyears has been a shift away from primary and traditional low value-added exports to highervalue-added manufacturing and technology-driven items. This shift has imparted a measureof resilience to export demand in a hostile international trading environment. The CurrentAccount De_cit (CAD) increased to 2.6% of GDP during Apr-Dec'18 from 1.8 % duringApr-Dec'17 due to widening of the trade deficit on account of higher oilprices. As oil prices started moderating from November'18 the CAD has moved downfrom 2.9% in Q2 FY2019 to 2.1% in Q3 FY2019.


The Indian banking sector has been facing a large overhang of balancesheet stress. In the year 2017-18 the persisting deterioration in asset qualitynecessitated sharp increase in provisions and for the first time since 1993-94 the bankingsystem as a whole particularly driven by public sector Banks (PSBs) registered losses.

To manage the crisis the regulator and supervisor RBI has tried forthe revival of the banking system by following a three-pronged approach: (i) Through AssetQuality Reviews (AQRs) a fuller recognition of stressed assets is nearing completion andprovisioning is being policy-driven; (ii) In consonance the implementation of a newframework for resolution of stressed assets under the overarching mandate of theInsolvency and Bankruptcy Code (IBC) is speeding up the de-stressing of balance sheets and(iii) the Government has undertaken steps for recapitalisation of the PSBs. Re_ecting suchresolution efforts asset quality of the banking sector currently appears to be on courseto recovery as the load of impaired assets recedes; the first half-yearly decline in gross NPAratio since September 2015 and improving Provision Coverage Ratio being positive signals.Stress test results suggest further improvement in NPA ratio. Notwithstanding the significant costsin lieu of enhanced recognition of asset impairment in PSBs it appears to have led to agreater discipline in credit assessment higher sensitivity to market risk and betterappreciation of operational risks. Meanwhile the Insolvency and Bankruptcy Code (IBC) hasbridged an important institutional gap to strengthen the much-needed credit discipline.Some of the resolutions however are lagging behind the envisaged timelines. A time-boundresolution of impaired assets will go a long way in unclogging the credit pipeline thusimproving the allocative efficiency in the economy.

The shift in credit intermediation from Banks to non-Banks has giventhe corporate sector a diverse choice of financing instruments. Suchmarket-intermediated credit flows require robust supporting infrastructure in the form ofappropriate valuation regime as also informative and responsive credit rating framework.However the stress in the NBFC sector have underscored the need for greater prudence inrisk-taking. While the role of Banks and non-Banks in supporting the growth needs of anemerging economy like India is well recognised emphasis should continue to be ondiligent prudent and sound risk management practices.

With the sustained efforts the Bank credit has picked up momentum in2018-19 after remaining depressed for nearly two years and grown by 11.96% its highestlevel in the last five years compared to last year growth of 10%. Aggregate deposits grewby 7.58% in 2018-19 compared to 6.2% growth in 2017-18. The incremental credit flows are alsogetting increasingly broad-based with services accounting for the highest share asagainst personal loans a year ago. Credit growth to industry which has turned positive inNovember 2017 after more than a year-long contraction has improved particularly inrespect of Infrastructure Chemical and Chemical products Engineering and Petroleum Coalproducts and Nuclear fuels. The share of credit to agriculture however moderated.

The up-tick in credit growth is likely to be supported by the progressbeing made under the aegis of the IBC in addressing stress on balance sheets of bothcorporates and Banks recapitalisation of PSBs and a positive outlook on the economy. Theprevailing negative credit-to-GDP gap indicates that there is sufficient scope for creditabsorption and expansion in Bank lending on a sustained basis.


The last financial year was particularly challenging for Banks in India.Operational risk increased and there was considerable market volatility adverselyimpacting treasury operations. Although the resolution of stressed assets has reached anadvanced stage counter litigations have elongated the realisation of final leg ofresolution process. The consolidation in PSB space has changed the landscape ofcompetition and this process may gather pace in the next financial year.

The cumulative effect of policy decisions over the last five years hasbeen positive in FY2019. Reform measures such as GST IBC Roads and Inland waterways etc.have stabilised. There is now a larger appreciation of the fact that there will be greateruse of digital technology in every sector of the economy. Report of the Taskforce on ArtificialIntelligence talks about the use of advanced data and AI techniques in financialservices. The credit growth which has improved in FY2019 and is supported byaccommodative policy stance articulated in the First Bi-monthly monetary policy willremain robust in this financial year as well.

The external environment continues to be challenging. IMF's latestFinancial Stability Report observes that rising financial vulnerabilities point toelevated medium-term risks to financial stability. Accordingly the trend to reorganise foreignbusiness in light of the emerging challenges and new opportunities such as regional tradeagreements will shape the things to come. Your Bank has already taken many initiatives inthis direction such as reorganisation of its UK operations. Close monitoring of risk inall overseas operations will be pursued.

Lastly the first quarter of current financial year is punctuated by theresults of general elections. Once this short-term uncertainty is cleared the course ofpolicy direction will also be visible. With monetary policy already accommodative a low inflation coupledwith manageable fiscal position the future outlook of growth is positive. The risks inbanking sector is likely to ebb with the resolution of large ticket IBC cases. This willcreate room for business expansion and structural transformation of Banks.



Total assets of your Bank have increased by 6.55% from `3454752.00crore at the end of March 2018 to `3680914.25 crore as at the end of March 2019. Duringthe period the loan portfolio increased by 12.97% from `1934880.19 crore to

` 2185876.92 crore. Investments decreased by 8.86% from `1060986.71crore to `967021.95 crore as at the end of March 2019. A major portion of the investmentwas in the domestic market in government securities.

Your Bank's aggregate liabilities (excluding capital and reserves)rose by 6.93% from `3235623.44 crore as on 31st March 2018 to `3460000.42crore as on 31st March 2019. The deposits rose by 7.58% and stood at`2911386.01 crore as on 31st March 2019 against `2706343.28 crore ason 31st March 2018. The borrowings also increased by 11.29% from `362142.07crore at the end of March 2018 to `403017.12 crore as at the end of March 2019.


Net interest income increased by 18.03% from `74853.72 crore in FY2018to `88348.87 crore in FY2019. Total interest income increased from `220499.31crore in FY2018 to `242868.65 crore in FY2019 registering a growth of 10.14%.

Total interest expenses increased from `145645.60 crore in FY2018 to`154519.78 crore in FY2019. Interest expenses on deposits during FY2019 recorded anincrease of 3.35% compared to the previous year.


Non-interest income decreased by 17.55% to `36774.89 crore in FY2019as against `44600.69 crore in FY2018. During the year your Bank received an income of`348.01 crore (`448.52 crore in FY2018) by way of dividends from subsidiaries and jointventures in India and abroad and `3146.86 crore (`13423.35 crore in FY2018) by way of profit on sale ofinvestments.


The Operating Profit of your Bank for FY2019 was at `55436.03 crore as compared to`59510.95 crore in FY2018 (including exceptional item of `1560.55 crore in the FY2018-19and `5436.17 crore in FY2017-18). Your Bank posted a Net Profit of `862.23 crore forFY2019 as compared to Net Loss of `6547.45 crore in FY2018.


Major provisions made in FY2019:

Provision of `54529.06 crore for non-performing assets (as against`70680.24 crore in FY2018) and a write back of `762.09 crore towards InvestmentsDepreciation (as against provision `8087.57 crore in FY2018) was made during theyear.


An amount of `258.67 crore (as against nil in FY2018) was transferredto Statutory Reserves. An amount of `379.21 crore (as against `3288.88 crore in FY2018)was transferred to Capital Reserves. An amount of `371.84 crore (as against withdrawal of`1165.14 crore in FY2018) was transferred to Investment reserve. An Amount of `194.05 crore(as against

` 192.32 crore in FY2018) was transferred from Revaluation Reserve toGeneral Reserve.


Steering Committee headed by Managing Director (Stressed Assets Risk& Compliance) has been monitoring implementation of Ind AS in the Bank. Your Bank isalready geared up for implementation of Ind AS. However implementation of Ind AS in Bankshas been deferred by RBI until further notice.



The Retail and Digital Banking Group is the largest business verticalof your Bank constituting 97.05% of total Domestic Deposits and 54.89% of total DomesticAdvances as of 31st March 2019. The Group comprises of eight strategicbusiness units which drive the largest branch network across the country with its vasthuman resources.

Your Bank's customer base is steadilyincreasingacrossthecountrymakingRetail Banking the most critical segment of your Bankboth in terms of deposit mobilization as well as extending customised credit for allbasic requirements of Retail customers. Simultaneously to meet the aspirations of thisgrowing customer base retail assets are being strategically positioned with a view tooccupy a much larger proportion of total advances. Within the retail portfolio Home andAuto loans are the major contributors. Your Bank continues to be the largest Home Loanprovider in the country and the largest dispenser of Education Loans which demonstratesits un_inching commitment to serve society at large.

The ever-evolving customer preferences especially of the youngerpopulation are transforming the retail banking landscape. Your Bank is at the forefrontin digital banking domain and maintains a steady stream of technology-driven innovations.State Bank of India has a multi-channel delivery model which allows it to offer itscustomers a choice to carry out transactions through any channel at any time and at anyplace. In FY2019 your Bank has increased its offerings across various channels - digitalmobile internet social media with additions to its branches ATMs YONO Cash Points andCustomer Service Points. YONO the banking and lifestyle app of your Bank is steadilystrengthening its base individually.

With a view to enhance its customers' experience your Bank ismaking continuous efforts in providing a pleasing ambience within customer service areaswith proper seating arrangements clean and uncluttered surroundings along with courteousand smartly attired staff at all its branches.


1. Home Loans

As on 31st March 2019 the Home Loan portfolio of your Bankwas the largest in the country with a market share of more than 34.51% amongst AllScheduled Commercial Banks (ASCB). The total Home Loan stood at `400377 crore which was20.11% of your Bank's domestic advances.

Affordable Housing was a key driver of growth in the overall Housingsector based on the Government's thrust to bridge the massive Demand-Supply gap ofdwelling houses in India along with the relaxation of the CLSS (Credit Linked SubsidyScheme) norms under Prime Minister's Awas Yojana (PMAY) covering more beneficiariesGovernment has also extended the PMAY MIG Scheme up to 31st March 2020. As of31st March 2019 State Bank of India has 64.46% of its Home Loan portfoliounder Affordable Housing. Your Bank was recognised by the National Housing Board (NHB) asthe Best Home Loan provider in the country under the PMAY MIG category for FY2017-18.

During FY2019 various initiatives were taken by your Bank to give anadditional boost to its Home Loan portfolio some of which are:

(March'17 figure includes that of merged Associate Banks too)

Home Loans on YONO was asignificant step towards digitisation and provided the registered YONO customers with24*7 access to Home Loan needs such as exploring SBI Home Loan products calculatingeligibility and getting instant In-principle approval. To meet the personal needs ofexisting Home Loan customers Insta Home Top-Up Loan was also introduced on YONO.

Sanctioning of Home Loansand Home related products from non-BPR centre branches through centralised Rural AssetsCredit Centres (RACCs) and Loan Processing Cells (LPCs) has brought about uniformity inprocesses and better quality of underwriting resulting in pan-India growth of qualityassets. The overall fresh NPA during FY2019 was below 1% of the total Home Loansportfolio. In order to help and support the _ood affected people of Keralawithin a month of the calamity your Bank introduced Home Loan Schemes for Repair andRenovation within the Kerala Circle on softer terms irrespective of category gender LTVratio and risk score of the customers. Your Bank introduced niche products such as ‘SBI Smart HomeTop-Up' for existing Home loan customers; SBI ‘Wealth' for HNI / High-endcustomers; and Flexible Margin Schemes for real-estate developers. Your Bank is leveraging its vast branch network and the strength of its committed staffwith the latest state-of-the-art technology to improve the Home Loan journey of thecustomer. Namely making it faster more transparent and easier. Your Bank continues towork towards being the first choice Home Loan provider of customers.

2. Auto Loans

Your Bank is helping with upgrading the living standards of itscustomers by providing auto loans at competitive rates and by making owning a car anaffordable proposition. The auto loan products of your Bank are available in many variantsto suit the requirements of various customer segments viz. - salaried businessmenself-employed professionals senior citizens NRIs agriculturists and existingborrowers amongst others. Multi-channel sourcing of proposals and quick TAT has made theauto loan products highly popular. This has helped your Bank to increase its penetrationin financing cars sold by various manufacturers such as Maruti Hyundai TATA Motors toname a few. The Auto Loan portfolio reached a level of `71884 crore by FY2019 and themarket share of Your Bank in Auto Loans rose from 34.97% in FY2018 to 35.45% in FY2019amongst All Scheduled Commercial Banks (ASCBs). Additionally State Bank of India plans tostart financing high-value super bikes a new and fast emerging segment.

3. Education Loans

Education is the key prerequisite for creating human capital as ithelps in developing skilled and productive human resources. Loans provided for thispurpose contribute to the development of the nation and is a growth driver for anyeconomy. Therefore the financing of up to `10 lakh under Education Loans is considered asPriority Sector Advance. Your Bank takes pride in being the largest Education Loanprovider in the country with a market share of 30%. During FY2019 it helped more than66947 meritorious students to realise their dreams by providing financial assistance to thetune of `6635 crore. Out of this 35% of the loans were extended to girl students. Tobroaden the scope of Education Loans book quality business and enhance customersatisfaction your Bank has taken following steps: Shortlisted 158top-rated premier and reputed institutions to extend Education Loans under the ScholarLoan scheme at relaxed norms and concessional interest rates. Door-stepservices were extended for sourcing high-value education loan applications for studyingabroad at select centres. To ensure better tracking of the loan applications and fastersanctioning of loans your Bank's Loan Origination System was integrated with VidyaLakshmi Portal (VLP) of the Government of India.

4. Personal Loans

Personal Loan is amongst the most popular products of your Bank andyour Bank is a leader in this market segment. Your Bank was aggressively catering to theneeds of salaried class (both government and private) pensioners and self-employed/ othercustomers. During FY2019 your Bank has provided Personal Loans to more than 15 lakhcustomers amounting to `56873 crore while maintaining a market share of around 30%.With a much higher rate of return on parameters such as ROA and RORWA your Bank'sdelinquency under this segment is one of the lowest in the industry. The products aredelivered through multiple channels such as Branches Internet Banking and through YONO.Utmost caution in selection of borrowers and careful due diligence has made it possiblefor your Bank to achieve much lower delinquencies despite aggressive portfolio growth.

Personal Loans for e-Commerce Purchases:

Your Bank provides EMI based loans to pre-selected elite customers forpurchase of consumer durable goods worth up to `100000 from online shopping portals suchas Flipkart and Amazon on a real time basis. Online e-commerce financing under tie-up withFlipkart was launched in May 2018 and with Amazon in October 2018. The portfolio is 19974accounts with an outstanding of `19 crore as on March 2019.

SBI Debit card holders were empowered to fulfil their shopping needs onPOS enabled swipe machines with an EMI facility given to the pre-selected ones forpurchasing consumer durable goods from the approved shops mall stores and show roomsworth up to `1 lakh. The facility was launched during the latter part of FY2019.

5. Liability and Investment Products

The overall P-Domestic CASA Deposits of your Bank has grown from`836294 crore as on FY2018 to `916442 crore as on FY2019 registering a growth of`80148 crore (9.58% annualised). The CASA improved to 48.49% as on FY2019 compared to48.23% as on FY2018.

6. Corporate and

Institutional Tie-ups for Salary Package

Salary Accounts of employees of Corporates Central/State Governmentestablishments Defence Para Military and Police personnel amongst others areopened/serviced through Key Accounts Managers (KAMs) who provide personalised servicealong with a bouquet of products under the Corporate Salary Package (CSP) at thecustomer's door step. The total Salary Account customer base for FY2019 reached145.93 lakh accounts registering a growth of 22% over FY2018.

7. Digital Personal Loan Offerings

While offering products on multiple platforms for portfolio growth withhigher profit margins we have kept in mind the ease of Banking for our Customers and haveimplemented following digital products: On the YONO Platform your Bank is providing Pre-Approved PersonalLoans (PAPLs) to pre-selected customers through four product lines viz. Pre-approvedXpress Credits up to `5 lakh Pre-approved Pension loans up to `2.5 lakh Xpress CreditInsta Top-up up to `3 lakh and Pre-Approved Personal Loans (PAPLs) up to `2 lakhto CSP and Non-CSP customers. Xpress Credit Insta Top-up loans on INBPlatform: Top-up loans up to `3 lakh are being offered to pre-approved Xpress Creditcustomers through INB platform. Tatkal e-Personal Loan: Loans up to `1 lakh are being offered tocater to the needs of pre-selected unserved and under- served non-salaried customersbased on selected parameters. This product was launched in May 2018 and has a portfolio of27853 accounts worth `122 crore as on March 2019. Personal loans wereextended against security of Sovereign Gold Bonds of Government of India.

8. NRI Business

As on 31st March 2019 your Bank has around 37 lakh NRICustomers who are being catered to by 93 dedicated NRI branches in India and awell-connected network of foreign offices. We also have correspondent banking relations with 234 globalBanks and tie- ups with 55 exchange houses and six Banks (in the Middle-East) tofacilitate remittances. The Indian diaspora spread across the globe has always reposedimmense trust on us. As a result a quarter of their deposits (within the Indian Bankingsystem) is with us. Your Bank has launched the following products/services in FY2019 forthe benefit of its NRI clientele: SBI Tax Savings Scheme for NRIs (NRO Deposits) was introduced inwhich customers can avail Tax benefits under section 80C of Income Tax Act 1961 (minimum tenor ofdeposit is 5 years and tax-relief is available up to `150000 per Financial Year). Missed call and SMS Banking facilities were launched for NRIs in which customers can gettheir latest balance and mini statements of their accounts via SMS just by giving amissed call on a predefined number. This is especially useful for customers who are not usingInternet Banking facilities. Customers can also block or restrict ATM card usage throughthis functionality. NRIs can now plan and secure retirement with the National PensionSystem (NPS) scheme. The product is now available to all SBI NRI customers. They can openand maintain NPS account through their Internet Banking portal as well. SBI Wealth the wealth management initiative of your Bank which offers a platform tocreate preserve and grow wealth is now available to NRI clientele from Gulf CooperationCouncil Countries.

9. Wealth Management Business

Your Bank's Wealth Management Services are now made available at44 Centres with 121 Wealth Hubs four e-Wealth Centres and a Global e-Wealth Centre byadding 31 new Centres and 45 new Wealth-Hubs during the year. The Wealth-Hubs are managedby a team of dedicated Relationship Managers and Investment Counsellors who have in-depthknowledge on products and markets along with Senior Internal Officials foroperational roles.

For greater connect and visibility your Bank re-branded the WealthManagement Business as ‘SBI Wealth' which was earlier known as ‘SBIEXCLUSiF'.

An open Investment Platform with a state-of-the-art technology andright selling approach based on Risk Pro_ling provides the best possible experience tothe Bank's clients by offering exclusivity in its services and benefits.

Your Bank added a new e-Wealth Centre at Kolkata during the year. Thee-Wealth Centres with extended banking hours are equipped with transaction executionfacilities over voice and video calls. With an endeavour to provide a best in classholistic experience to clients your Bank has launched a new version of ‘SBI WealthMobile App' enabling investment transactions.

During the year your Bank posted Relationship Managers (NRI Wealth) atAbu Dhabi Bahrain and Dubai. NRIs residing in Bahrain Kuwait Qatar Sultanate of Omanand UAE are eligible to be on-boarded as Wealth Clients. They have an option to accessWealth Management Services either through e-Wealth Centres or Wealth Hubs during theirvisit to India. Your Bank has also opened a state-of-the-art Global e-Wealth Centre atKochi for extending services to NRIs.

Your Bank has conducted Signature Investment Conclaves addressed byexperts from the Financial Industry and Markets on prevalent market conditions andinvestment opportunities. These Conclaves were well attended by existing and prospectiveSBI Wealth Clients.

To commemorate the 3rd Anniversary of SBI Wealth the Bankconducted a Signature Client Engagement Program at Mumbai to build a deeper and valuedrelationship with Wealth Clients. It released the 2nd edition of the FinancialPlanning reference publication during the launch of its 100th Wealth Hub at Coimbatore.

Your Bank's Wealth Management Business has shown an exponentialgrowth in terms of client acquisition and Assets Under Management during the financial year.The number of Clients increased from 24168 in March 2018 to 55502 in March 2019 and AUMreached `30270 crore against `14284 crore during the period.


As on





31st March 2016





31st March 2017





31st March 2018*





31st March 2019*






1. ATMs/ ADWMs

Your Bank has one of the largest ATM networks in the world with 58415ATMs including Automated Deposit and Withdrawal Machines (ADWMs) as on 31st March2019. To provide 24x7 cash deposit and withdrawal facilities it has installed 7658 ADWMsand CDMs.

Nearly 36% of the financial transactions of your Bank are routed through ATMs/ ADWMs. Witha market share of 28.73% (as per RBI Data) in ATM network in India it transacts 50.81% ofthe country's total ATM transactions. On an average over 1.40 crore transactions perday are routed through your Bank's ATM network.

Under the Green initiative and cleanliness drive your Bank hasdiscontinued printing of transaction slips for 43 types of unsuccessful transactions. Ithas installed solar panels on around 2400 ATM sites.

Your Bank has set up over 2200 e-Corners across the country wherecustomers can avail the entire gamut of services through ATMs ADWMs SWAYAMs Checkdeposit Kiosk and online banking kiosk.

To ensure safety of ATMs and customers' coverage under electronicsurveillance is being enhanced. Your Bank has covered approximately 13000 ATMs undere-surveillance as on 31st March 2019 while the next 15000 ATM sites areslated to commence shortly.

2. SWAYAMs: Barcode based Passbook Printing Kiosks

Your Bank installed around 3200 SWAYAMs (Barcode based PassbookPrinting Kiosks) during FY2019 making the total number of SWAYAMs deployed cross 17400units. Using these kiosks customers can print their own passbooks using barcodetechnology. Your Bank has also deployed "Through the Wall" SWAYAMs offeringextended working hours for printing. More than 3.45 crore transactions are recordedat these kiosks per month.

3. Green Channel Counter (GCC)

GCC installed at all retail branches extend services such as cashwithdrawal cash deposit funds transfer within State Bank of India balance enquiry andMini Statement. On an average 8.20 lakh transactions are being routed through GCC per day.

4. Green Remit Card (GRC)

GRC especially useful for migrant depositors is a card through whichone can remit money using GCC/CDMs/ ADWMs in a specified account of State Bank ofIndia. As a daily average over 1.50 lakh transactions are being routed through GRC.

5. Banking on Mobile

YONO Lite - Your Bank's Mobile Banking App for retailcustomers YONO Lite as it is now known offers Intra and Inter Bank funds transfer(NEFT/RTGS/IMPS/ UPI amongst others.) opening of fixed deposits e-MOD Accounts and add/ manage beneficiaries etc. Additional value-added services such as Aadhaar LinkingVoice Assisted Banking e-statement subscription/download Stop / Revoke chequeinstructions and facility to submit Form 15G/ 15H online for TDS exemption and a host ofother features are also available.

SBI Anywhere Corporate - Your Bank's Mobile Banking App forproprietorship firms allows businesses to transfer funds across Banks open and operatefixeddeposit accounts payment to EPFO view account statements schedule transactions andRecharge/bill payment amongst others. Furthermore it facilitates large Corporate firms withmultiple users and allows business houses to operate accounts transfer funds through NEFT/RTGS make bill payments/supplier payments authorise e-cheques /e-STDR open and operate fixed depositaccounts amongst others. With above 141 Lakh registered users the Mobile Banking channelhas processed transactions amounting to `274029 crore.

Mobile Banking: Market Share in No. of Transactions (in%)

6. SBI Pay (BHIM)

Your Bank's Uni_ed Payments Interface based App is aninteroperable offering which provides the convenience of transferring funds acrossdifferent Bank accounts using - Virtual Payment Address (VPA) Bank Account Number + IFSCand scanning a QR Code. Over 553 lakh users have registered and are availing UPI servicesresulting in more than 129 crore transactions amounting to more than `2.96 lakh croreprocessed through the SBI UPI channel during FY2019. Additionally users have theconvenience of making bill payments travel bookings and ordering food through BHIM SBIPay making it an all-in-one UPI App. A facility to help donation for a variety of noblecauses such as - Clean Ganga Fund and various Chief Minister's Relief Funds has alsobeen enabled on the app.

Large multinational corporations have implemented digital payments bandwagon to helpachieve a Less Cash India. State Bank of India has partnered with Google India to offerUPI services to the users of their App - Google Pay under the UPI Multi-Bank IntegrationModel. Consequently over 312 lakh Google Pay users have linked their Bank accounts withtheir @OKSBI handle till 31st March 2019.

SBIePay - Your Bank's Payment Aggregator

SBIePay started in March 2014 is the first and only Bank basedPayment Aggregator in India. In its essence SBIePay is a platform for merchants toacquire a Bank agnostic large customer base and provides a bouquet of online paymentoptions to the merchant's online customers. During last year SBIePay has witnessedexceptional growth as a result of an increase in the number of merchants on-boardedwhich rose from 125 in FY2018 to 225 in FY2019. Moreover your Bank has added four newchannels to the bouquet of online payment offerings - NEFT Prepaid Card UPI andSBIePay-POS and have made direct integration with INB of other Banks such as HDFC ICICIBank of Baroda amongst others. This has resulted in a 115% YoY growth in number oftransactions. The value of the transactions settled has jumped from `24487 crore inFY2018 to `38207 crore in FY2019 leading to an increase in the commission/revenueearned by your Bank. SBIePay has achieved a revenue of `49.68 crore during FY2019 agrowth of 54% over FY2018.

7. Digital Banking

The digital payments landscape in India is evolving rapidly and StateBank of India is playing an effective role in building momentum for transforming Indiathrough digitalisation of the economy. In sync with the Government of India to create aless-cash economy your Bank has expanded its digital footprint across the length andbreadth of the country.

YONO: YONO our flagship customer-facing digital Bank caters to various banking financialservices lifestyle requirements and delivers world class customer experience throughdistinctive omni-channel and seamless customer journeys. It is also an employee facingplatform that enables end-to-end digitisation of regular banking services.

With YONO our customers today can: Open an account digitallyand do all banking transactions on a mobile app or website.

Get advice on andpurchase a host of non-banking financial services products such as mutual funds life and generalinsurance credit cards among others. Get the widest variety and lowest prices on beyond bankingproducts across 89 merchant partners and 21 categories on the platform. Atthe same time our employees can provide the same services to our customers when they needassisted services. Besides processes that take up close to 60% of branch activities havebeen digitised with a view to streamline processes deliver superior in-branch customerexperience and free up capacity for value creating activities.

YONO Impact achieved:

A year since launch YONO has already generated significant valuefor the Bank in terms of business growth new customer on-boarding and customer engagement

YONO has achieved 2 crore downloads and approximately 73.49 lakhregistrations till date. Over 10 lakh users login daily.

Significant momentum on new customer on-boarding achieved withapproximately 25000 digital accounts opened per day which was over 75% of all eligibleaccounts being opened by the Bank with 30-40% higher balances than regular accounts.

YONO is the fastest growing major channel for personal loans. It hascrossed over `300 crore of monthly disbursements through a completely paper-less process.

The non-banking financial services product suite that is insurance mutual fundsamongst others are achieving all-time highs.

The market place has also been very successful in getting us engagementfrom our customers. 25% of customers who log in on a monthly basis do so to access themarketplace. For these customers 45% of the time spent on the app is on the marketplace.

On end-to-end digitisation we have drastically reduced the TAT foraccount opening from over 50 minutes to less than 10 minutes and are in process ofeliminating the back-office for few key transactions.

Various other intangible benefits were achieved through YONO forexample simpli_ed CKYC process elimination of paper-based application forms automatedcustomer validations amongst others.

Awards won by YONO : "CSI IT Innovation & Excellence Awards 2018" - BestBFSI for Implementation of Digital Trasnformation ( Dec 2018) "ABP NewsBFSI Award 2018" - Best Bank in Technology Orientation ( November 2018). "Mobile Banking Initiative of the Year - India" at the Asian Banking and FinanceRetail Banking Awards Singapore (July 2018). Indian Express Award 2018- Enterprise Mobility Category (June 2018). ET BFSI Innovation Awards(September 2018).

Performance Highlights of YONO as on 31st Mar 2019 : 2crore + application downloads 73.49 lakh Registrations App rating on Android isat 3.7 and 2.8 on iOS 10 lakh+ daily logins 98.31+ lakh FundTransfers (` 13413.64 crore ) executed 2.40+ lakh Fixed Deposits opened 13.84+ lakh Bill paymentsdone 27.50 lakh+ Digital Savings accounts `3800 croreworth disbursals of Digital paperless Pre-Approved Personal Loans to 3.14+ lakh customershaving delinquency rate of less than 0.01 %. 89 merchant partners liveon the B2C Market Place platform across 21 categories witnessing approximately 137000transactions (around `60 crore Gross Merchandise Volume) 1.66 crore merchant clicks andapproximately 54115 IRCTC ticket bookings. Mutual Funds Gross Salesworth `8324.79 lakh General insurance policies worth `981.46 lakh (No: 319936) Life Insurance Policies value `1315.47 lakh (renewal) and `550.93 lakh (New) achieved onthe YONO platform. 2.16+ lakh SBI Credit Cards linked; 5.79 lakh card payments worth`678 crore done; 1.93 lakh new Card leads generated. Online lead generationand issuance of In-principle approval and sanction of Retail Loans for Home Loan (existingcustomers) approximately 45475 leads generated out of which around 9356 in-principleapproval generated (around `1402 crore). Innovative product‘YONO Cash'

- Cardless paperless withdrawals at ‘YONO cash Points' (ATM)launched Pan India. The innovative YONO Cash feature provides cardless fast convenientand safe cash withdrawal facility at nearly 19601 ATMs across the country. The enhancedjourney to include the scope of paperless/cardless cash withdrawal at POS terminalsbranches and BC channel under YONO Cash is under development.

Debit Cards: State Bank of India has focused on shifting the usageof Debit Cards by customers from ATMs (for cash withdrawals) to PoS terminals/e-Commercewebsites. Highest one day spends at PoS/e-Commerce was achieved with ~`1000 crore onDhanteras.

Additionally your Bank has launched various innovations andfunctionalities around Debit Cards such as Contactless Debit Cards Bharat QR SamsungPay Visa Checkout and Personalised Image Debit Card "My Card". Moreover ithas tied up with various institutions such as Mumbai Metro Chennai Metro College ofEngineering - Pune IOCL and others for launching co-branded Debit Cards/ Combo Cards.

These initiatives made State Bank of India a market leader in terms ofshare in Debit Card spends which is at a high of 29.89% as on 31st March2019. With approximately 29.67 crore actively used Debit Cards as on 31stMarch 2019 State Bank of India continues to lead in Debit Card issuance in the country.

State Bank Foreign Travel Cards (FTC): The State Bank ForeignTravel Card (SBFTC) is a chip based EMV compliant card and is issued on VISA andMasterCard schemes providing safety security and convenience to overseas travellers. OnVISA it is available as single currency card in 8 currencies - US Dollar British PoundSterling Euro Canadian Dollar Australian Dollar Japanese Yen Saudi Arab Riyal andSingapore Dollar. On MasterCard it is available as Multicurrency Card in 7 currencies - USDollar British Pound Sterling Euro Canadian Dollar Australian Dollar SingaporeDollar and UAE Dirham. Your Bank has also introduced corporate variants of SBFTC to caterto varying needs of corporate customers. Additionally your Bank is aggressively promotingtie-ups with FFMCs (Full Fledged Money Changers).

FASTags: Your Bank has issued more than six lakh SBI FASTags tocustomers. Consequently Toll transactions through SBI FASTags have crossed a mark of 216lakh with a total transaction amount of over `395 crore as on 31st March 2019.State Bank of India has put onboard State Road Transport Corporations in Uttar PradeshPunjab Uttarakhand Odisha Tamil Nadu Karnataka and West Bengal for FASTag services.

Metro and Transit Projects: Your Bank has implemented a first-of-its-kind end to end ticketing solution for the Noida Metro Project using the NationalCommon Mobility Card (NCMC) specifications based RuPay Prepaid Card. State Bank of India has also beenawarded the Hyderabad and Nagpur metro project for implementation of Open Loop AutomaticFare Collection System based on the NCMC card specifications the work of which isunder way.

Smart City: Your Bank has a dedicated team to capture the paymenteco-system in the 100 identified Smart-Cities in India. The plan is to foray into the transitsolution/ integrated ticketing solution for ‘One City One Card' which is apayment initiative for the Smart Cities.

Cash@PoS: To reach out and facilitate maximum number of peoplelooking for convenient cash withdrawal State Bank of India provides facilities of cashthrough ‘Cash@POS' initiative. Debit card holders of State Bank of India and allother Banks can withdraw cash from PoS machines installed by your Bank across variousmerchant locations. As per the RBI guidelines customer can withdraw ` 1000 in Tier I andTier II cities whereas ` 2000 can be withdrawn in Tier 3 to Tier 6 cities per day percard. Presently your Bank is not charging any fee. State Bank of India has a total of5.75 lakh PoS machines of which 4.78 lakh PoS machines are enabled to dispense cash to thecustomers of your Bank and the Banks who have enabled this facility for their customers.

Merchant Acquisition: The digital payments landscape in India isevolving at a rapid rate and your Bank is playing an effective role in building momentumfor transforming India through digitalisation of the economy. In sync with the focus ofthe Government of India to create a less-cash economy your Bank has expanded digitalpayment acceptance infrastructure across the length and breadth of the country. During theyear your Bank introduced a multi option payment acceptance device named MOPADfacilitating payments via cards Bharat QR UPI and SBI Buddy (e-wallet) on a PoSterminal. In addition your Bank continued to expand digital footprint across the countryand deployed 5.75 lakh PoS terminals 4.19 lakh Bharat QR code and on-boarded 6.31 lakhmerchants on BHIM-Aadhaar-SBI. In total the number of merchant payment acceptance touchpoints crossed 27.91 lakh as on 31st March 2019. Your Bank has acquired nearly54 crore transactions during FY2019 with 24% increase on Y-o-Y basis. In addition tooffering basic acquiring services your Bank is also providing other services such as: NFCacceptance on PoS terminals DCC-Dynamic Currency Conversion EMI Cash@POS Acceptance of AMEX DINERS DFS JCB and UPI

Your Bank continued the efforts to onboard merchants from premiumsegments like OMCs retail chains life style stores and holiday resorts apart fromconsolidating the existing business. Your Bank has tied up with major Corporates and withGovernment departments to migrate their operations from cash to digital mode. This involvecustomisation and integration of its systems with those of corporate and Governmentdepartments to ensure seamless flow of digital transactions. Some of the notable integrations are withIndian Railways SOUTHCO (Odisha) APDCL (Assam Power Distribution Co. Limited) Goa -GBSS project (Government of GOA) Cyber Treasury (Govt of Madhya Pradesh) IGR (InspectorGeneral of Registrar) Pune Noida and Nagpur

Metro. Your Bank has also initiated the development of acceptanceinfrastructure for NCMC (National Common Mobility Card) on our PoS terminals to push thegovernment initiative of ‘One Nation One Card'.

State Bank of India has transferred merchant acquiring business to itssubsidiary SBI Payment Services Private Limited (SBIPSPL) and has subsequently inductedHitachi Payment Services Private Limited a domain player as a JV Partner with minorityshareholding. This will enable SBIPSPL to offer innovative technology driven products indigital payment acceptance system which will boost Digital India Initiative and offerimproved merchant experience.

8. Customer Value Enhancement

Your Bank is the Corporate Agent of SBI Life Insurance Co. Limited andSBI General Insurance Co. Limited and has Distribution Agreement with SBI Mutual Fund SBICards & Payment Services Private Limited and SBI Cap Securities Limited fordistributing their products. Your Bank also distributes mutual fund products of UTI MutualFund Tata Mutual Fund Franklin Templeton Mutual Fund L&T Mutual Fund ICICI MutualFund and HDFC Mutual Fund. In addition all branches are authorised for opening pensionaccounts under National Pension System.

Performance Highlights: (Commission on Cross Selling)


J Vs

YTD March 2018

YTD March 2019

(Rs. in crore)

(Rs. in crore)

























Digital sale has gone up from 22% to 92% in FY2019.

Number of Specified Person for Life insurance hasincreased to 54317 as on March 19 as against 46180 in March 18 (Increase of 17.6%)


SBI has becomeIndia's No.1 Bank distributor in terms of AUM (more than `72000 crore).

SBI continues to be themarket leader in terms of Live SIP numbers (more than 22 lakh) and SIP Book Value as onMarch 19.


Number of Specified Personfor General Insurance has increased to 22034 as on March 19 as against 20646 in March 18(Increase of 6.72%)


No of cards issuedthrough Banca Channel crossed 15 lakh in FY2019.

Cards sourced from Banca Channel has increased from 45% in FY2018to 55% of total cards issued by SBI Card in FY2019.


Bank continues tomaintain its dominance in mobilising maximum number of NPS accounts this year as well.

Bank was qualified as TopPerforming Point of Presence (POP) under various campaigns observed by PFRDA.

Bank has shown a significant growth in income earned bysourcing Demat accounts and by opening NPS accounts.

9. Internet Banking and e-Commerce

State Bank of India continues to grow and lead the digital bankingspace propelled by the enhanced outreach of ‘Onlinesbi' across all customersegments. The channel has expanded its footprint with over 129.23 lakh new user additionsduring the first nine months showing a marked increase over the last year'sreach (see Table).

With introduction of new features and several add-ons provided in‘Onlinesbi' to enhance customer comfort and experience the platform handledtransaction volume exceeding 162 crore with transaction value of nearly 127.78 lakh crorerecording a quantum jump over the last year (see Table). This reflects on the growingcustomer confidence on our offerings and deliverables.

One of the key enablersprovided to customers is the facility which enables them to reply to transaction alertsreceived through SMS and email for instant reporting of unauthorised transactions. Mobile registration was made mandatory to facilitate receipt of SMS alerts by customers. Online download of Form 16 A is now made available through OnlineSBI.


Your Bank is pioneer and market leader in SME financing. With over ten lakhcustomers the SME portfolio of `288583 crore as on 31st March 2019 accountsfor nearly 12.58% of your Bank's total advances. State Bank of India has always heldSMEs as an important segment considering the role being played by them in the Indianeconomy in terms of their contribution to manufacturing output exports and employmentgeneration. Being committed to providing Simple and Innovative Financial Solutions yourBank's approach in driving SME growth rests on the following three pillars: a)Customer Convenience b) Risk Mitigation c) Technology based digital offerings andprocess improvements

Key Performance Indicators 2017-18 2018-19

New User Registration (`in lakh) 94.63 129.23 Transaction Volume ( crore) 156.56 162.06Transaction Value ( crore) 9507340 12777976

Key Enablers:

Green Password has beenlaunched during the year to enhance customers' ease in joining our digital platformwith a hassle-free self-registration process. This is set to expand the INB coverage amongexisting and new customers.

Launch of Virtual AccountNumber (VAN) a customised collection tool for big corporates with its unique alphanumericcode that masks the account details of the corporates from the remitter is another bigmilestone reached during the year.

Facility for the non-INBcustomers to update their email ID in CBS records by accessing the option

‘Register / Update your E-Mail ID' under the tab ‘UsefulLinks'.

1. Customer Convenience

With a view to build and sustain the momentum for transforming Indiayour Bank has created the highest units of touch points in terms of branches and othermodes. With a view to enhance ease of business for the Small and Medium EnterprisesState Bank of India modified its existing delivery model of Small and Medium EnterprisesCentre (SMEC) and created Asset Management Teams (AMTs) to maintain end to endrelationship with the customers for micro loans up to `50 lakh. The SMECs have also beenstrengthened in terms of manpower which has resulted in improvement in the service.

2. Digital offerings:

Your Bank is leveraging technology in every aspect of the valueproposition from sourcing business designing products streamlining process improvingdelivery to monitoring. Furthermore it has taken several initiatives to build SMEportfolio in a risk mitigated manner and has implemented significant changes in (i)Product suite (ii) Process (iii) Delivery.

Loan Life-Cycle Management

Lead Management System (LMS): Your Bank is hosting an online loanapplication and tracking facility for MSME borrowers on the Corporate It is an internet-based Credit Proposal Tracking System called LeadManagement System (LMS) which allows customers to apply for a loan online and receive anacknowledgement in the form of application reference number.

Customer Relationship Management (CRM): Leads sourced are tracked andmonitored for delivery through this system.

Loan Origination Software (LOS-SME) and Loan Life Cycle ManagementSystem (LLMS): With a view to adopt the uniform standards of credit dispensation forensuring quality and preserving corporate memory loans are processed through LOS and LLMSfor small and high value loans respectively.

Contactless Lending Platform

State Bank of India is one of the members of SIDBI led PSB consortiumand your Bank's path-breaking initiative provides easyaccess for loans to SMEs registered on GST platform and _ling income tax. On thisContactless Lending Platform (CLP) in-principle sanction of loans up to `1 crore isprocessed. 8377 in-principle sanctions were generated through CLP by FY2019 amounting to`3250 lakh.

Project Vivek

Project Vivek heralded a paradigm shift in your Bank's appraisalsystem from traditional Balance Sheet based funding to a more objective appraisal systemof leveraging cash flow and other information sources. It is a promising initiativelaunched by State Bank of India to implement a new Credit Underwriting Engine (CUE) forthe SME segment thereby bringing objectivity in better risk assessment. Moreover itreduces Turn Around Time (TAT) resulting in better customer experience. By FY2019a total of 34477 proposals were processed under Project Vivek. Further during the year technicalenhancements were done in the project to improve the underwriting process.

SBI and QCI sign MoU on Zero Defect Zero Effect (ZED) Certification forMSMEs: State Bank of India becomes the first Bank to sign a Memorandum ofUnderstanding (MoU) with Quality Council of India on the Zero Defect Zero Effect (ZED) CertificationScheme of Ministry of Micro Small and Medium Enterprises Government of India.

As part of this MoU with QCI your Bank has decided to offerconcessions in Pricing/processing charges for MSMEs having better ZED ratings. State Bankof India is also considering incorporating ZED rating as a parameter in its Bank'sinternal rating system.

Brie_y this MoU will pave way for a collaborative arrangement onimplementation of ZED on a nation-wide scale on specific activities aimed for the benefit of MSMEs.Both your Bank and QCI will define a strategic framework to take forward the vision of Hon'blePrime Minister for making our MSMEs adopt Zero Defect and Zero Effect practices.

The ZED Certification Scheme of Ministry of MSME is aimed at enhancing the globalcompetitiveness of Indian MSMEs on quality and environment aspects in their systems and processes. Itis a continual improvement and rating scheme involving handholding and certification ofMSMEs with financial support from the Government of India. Ministry of MSME hasnominated QCI as the National Monitoring and Implementing Unit (NMIU) of this Scheme.

So far more than 20000 MSMEs have registered for ZED and many StateGovernments are already incorporating ZED in their Industrial Policies.

Trade Receivables Discounting System (TReDS)

State Bank of India was the first among all PSBs to register as a financier duringthe year on the TReDS platform RXIL and M1xchange set up to provide finance to MSMEs.With this we now have our presence on all the 3 TReDS platforms in the country. Your Bankwas actively participating in the online biddings on the platform and was offering verycompetitive rates for the benefit of MSMEs. Your Bank rediscounted bills worth `72.51 crore whichwere discounted by SBI Global Factors Limited on the 3 TReDS platforms.

3. Business Partnerships/ Tie-ups

Your Bank is expanding its portfolio of Warehouse Receipt Finance andSupply Chain Finance through Business partnerships/Tie-ups with Collateral Managers andIndustry Majors.

Warehouse Receipt Finance:

Your Bank has introduced Warehouse Receipt Financing scheme (WHR) toextend finance to traders/owners of goods/manufacturers for processing provided againstWarehouse Receipts issued by Collateral Managers having a tie-up with State Bank of India.Further WHR issued by Central Warehousing Corporation (CWC) and State WarehousingCorporation (SWC) would also be eligible for WHR finance. The WHR portfolio as on 31stMarch 2019 stands at `6111 crore.

Supply Chain Finance:

Leveraging state-of-the-art technology and branch network your Bankhas emerged as a major player in Supply Chain Finance by strengthening its relationshipwith the corporate world.

During the fiscal year State Bank of India entered into 61 new e-DFS (ElectronicDealer Finance Scheme) and four new e-VFS (Electronic Vendor Finance Scheme) tie-upscovering 351 Industrial Majors 25921 of their dealers and 16572 vendors. The number ofoil dealers (Petrol Pumps) on e-DFS crossed 14806 during the last fiscal.

There was 20.07% Y-O-Y growth in e-DFS portfolio.

4. Risk Mitigation:

Your Bank has increasingly been shifting its focus towards RiskMitigated Products which include Asset Backed Loans Overdraft against Bank Deposits/Government Securities Bills Discounting facility and CGTMSE/CGFMU covered loans amongstothers.

Pradhan Mantri Mudra Yojana:

In line with the initiatives of the Government of India your Bank haslaid considerable emphasis on extending credit facilities to eligible units underdifferent variants of Pradhan Mantri Mudra Yojana and has disbursed `33612 crore forFY2019 under PMMY against a target of `33550 crore.

Credit Flow to Micro and Small Enterprises under CGTMSE:

State Bank of India was a pioneer in supporting MSMEs and Micro andSmall business by extending collateral free lending up to `2 crore under guarantee ofCGTMSE. Your Bank has a portfolio of `7830 crore under CGTMSE as on 31st March2019.


1. Agri Business

Credit support for agriculture and allied activities gained greatermomentum during this year although the external environment was marred by farm distressand the effects of debt waivers announced by various State Governments. In line with thepast trends the credit flow to agriculture set by the Government for FY2019 was surpassed byyour Bank.























Your Bank has launched nine products for Dairy Fisheries PoultrySheep rearing Goat rearing Piggery Bee-keeping Sericulture and Mushroom Cultivationwherein loans with a limit up to `10 lakh are being sanctioned without obtaining anycollateral security under the Mudra scheme with liberalised terms as allied agriculturalactivities are means of increasing farmers' income.

During the year the Agri portfolio growth was ahead of the YTD ASCBtrends. The YTD growth in total Agri advances as on 31st March 2019 is`14430 crore. The comparative growth in overall Agri Advances portfolio is as under:

(Rs. in crore)


Total Agri Advances

YoY Growth Amount

YoY Growth %










Your Bank has witnessed an impressive pickup under Risk Mitigated loanssuch as Gold Loan ABAL (Asset Backed Agri Loan) and Portfolio Purchases from MFIsresulting in an increase in the share of Risk-mitigated loans from 27.6% in FY2018 to30.3% in FY2019 at a whole Bank level. In Portfolio Purchases from MFIs under DirectAssignments a total of 29 proposals worth `9555 crore were sanctioned during FY2019.

A new product designed to meet the general-purpose needs of farmersagainst the collateral of property called the Asset Backed Agri Loan (ABAL) picked upmomentum during the year with a growth of about 142% albeit on a lower base. This productwas readily accepted by customers because of the flexibility it offers.

Your Bank is de-risking its Agri portfolio and supporting farmers atthe same time by tying up with local and national level Agri Corporates wherein thesupply chain will ensure cash flows for timely renewal of loan and better incomes for the farmers.Additionally it is lending under a Cluster-based approach to tap opportunities revolvingaround areas and centres which have traditionally been known for shrimp farming dairypoultry and higher value horticulture crops such as pineapple and mango.

Micro credit (SHGs Bank Linkage):

Your Bank has the highest market share in SHG loans outstanding amongall Banks with outstanding loans of `13444 crore to 6.09 lakh SHGs as on 31stMarch 2019 including more than 50 lakh women members.

Deendayal Antyoday Yojana: National Rural Livelihood - Mission(DAY-NRLM):

Since inception of DAY-NRLM on 1st April 2013 your Bankhas financed 1425670 SHGs under Bank-SHG Linkage and disbursed `23939 crore.

State Bank of India has won the National Award for highest SHG Banklinkages for the year 2018 instituted by Ministry of Rural Development New Delhi on 11thMay 2018. Your Bank's market share of loans under National Rural Livelihood Missionamong PSB is 25.42% as on 31st March 2019.

Other Initiatives

Recognising the contribution of rural India to the nation'seconomic growth your Bank is striving to meet the financial needs of the rural segmentthrough various new channels and services. To create focused attention on the importanceof soil health card and advocating for sustainable management of soil resources aimed atenhanced Agri production State Bank of India has observed World Soil Testing Day on 5thDecember 2018 across the country at selected branches by inviting Agriculture Scientistsand farmers at field level. The programme was themed "Be the Solution to soilpollution" to encourage Organic Farming.

As widely reported the Agriculture sector saw developments with a fewStates announcing waiver of farm loans in response to demands made by the farmers.

Your Bank announced Rinn Samadhan:2018-19 scheme covering farm sector loans andachieved the set internal targets.

Keeping in view the large number of customers served by your Bank itorganised mass contact programmes on five occasions during the year. Under this initiative all Rural andSemi-urban branches held informal meetings with farmers to improve customer connect andspread awareness about your Bank's and Government's schemes. As estimated atleast 14 lakh farmers attended these meets.

Other remarkable initiatives taken during the year included issuance of72 lakh KCC- ATM-RuPay Cards to Kisan Credit Card (KCC) borrowers for ease and operationalconvenience. KCC RuPay Cards work seamlessly with ATMs and PoS machines enabling farmersto purchase their day-to- day farm requirements on 24x7 basis.

State Bank of India organised Kisan Mela at nearly 14000 rural andsemi-urban branches across the country. It is an initiative by your Bank to connect withfarmer customers resolve their grievances and educate them about their rights and yourBank's initiatives.

As part of Kisan Mela your Bank also offers KCC farmers an enhancementof 10% to their credit limit on renewing the account. In addition to this State Bank ofIndia has taken this initiative to reach out to the farmers to educate about the benefits ofrenewing KCC account to get maximum benefits of interest subvention from Government and coverage under PradhanMantri Fasal Bima Yojana. Your Bank has also made farmers aware about the benefits of timelyrenewal of KCC account and usage of KCC Rupay Card for transactional convenience.

Furthermore your Bank will sensitise farmers on various Agri-productsof your Bank like Asset Backed Agri-loan Mudra Loan and loans on other allied Agriactivities.

2. Financial Inclusion (FI):

Your Bank realises the role it must play as the largest Bank in thecountry in practicing and promoting FI activities. The spread of digital banking channelsand expansion of Business Correspondents (BC) network is giving your Bank the impetus tofurther grow its FI activities. Thus to achieve inclusive development and growth yourBank has worked out strategies and leveraged technology to expand financialservices to the door steps of the unbanked with the purpose of bringing them under theambit of formal banking system.

Your Bank has 57467 operating BCs and 22010 branches across thecountry to offer banking services. The BC channel which provides customers in unbankedareas an access to various banking products and services while reducing footfalls in thebranches has recorded 39.75 crore transactions amounting to `173381 crore in FY2019translating to around 15 lakh transactions per day.

Under the flagship Pradhan Mantri Jan Dhan Yojana (PMJDY) of Government of IndiaState Bank of India has paved the way for universal financial access by being a pioneer inimplementing the programme. Your Bank has opened 10.97 crore accounts by FY2019 and issued9.20 crore RuPay debit cards to the eligible customers. These initiatives taken under financialinclusion as part of key economic policy agenda of the Government over the last decadehas ensured access to Bank accounts for the excluded persons.

To fulfil the needs of Social Security measures low cost Micro insuranceproducts (PMJJBY PMSBY) and pension schemes (APY) are provided to the unorganised sectorin a big way covering around 3 crore customers.

Imparting Financial Literacy

With the objective of imparting financial literacy and facilitatingeffective use of financial services your Bank has set up around 338 Financial LiteracyCentres (FLCs) across the country. During FY2019 a total of 29450 financialliteracy camps were conducted by these FLCs across the country. As a part of the pilotproject implemented by RBI your Bank has set up 15 centres for Financial Literacy atBlock level five each in the state of Maharashtra Chhattisgarh and Telangana inassociation with NGOs identified by RBI.

State Bank of India hosted a panel discussion on ‘India-China:Financial Inclusion - Experiences and Challenges'. The discussion was attended by ahigh-level delegation from China which included Mr. Li Wei President DevelopmentResearch Centre PRC and Minister. Furthermore it was centred around the initiativestaken by the Indian and Chinese governments towards financial inclusion the experiencesand the challenges thereto.

Rural Self Employment Training Institutes (RSETIs) play an importantrole in skill development by imparting comprehensive quality training programme to ruralyouth. Additionally it facilitates them in setting up micro enterprises. Your Bank hasset up 151 RSETIs spread across 27 States and one Union Territory.

RSETIs have trained over 96999 rural youth in FY2019. Over 70% of thecandidates trained are women and 92% of the candidates trained belong to non-generalcategories (SC/ST/ OBC/ Minorities). More than seven lakh candidates were trained bySBI-RSETIs since 2012 of which 69% were settled in gainful vocation.


Reserve Bank of India has issued guidelines on co-origination of loanswith Banks and NBFCs. Based on the guidelines your Bank has created a new department'NBFC Alliances' in the month of October 2018. The main objective of theDepartment is to partner with Non-Banking Finance Companies and Micro FinancialInstitutions across the country in Co-origination of loans for creation of assets underpriority sector.

To achieve this objective your Bank has formulated a detailed policyapproved by The Central Board. Additionally the NBFC Alliances Department focuses onengaging NBFC/MFIs (other than NBFC-ND-SI) as Business Associates to achieve a growth inPriority Sector Advances. Moreover the Department also facilitates portfolio purchase andsecuritisation of loan portfolio with respective Business Units viz. ABU SMEBU REHBUand PBBU.

Your Bank has stepped up the target for purchase of good qualityportfolio of assets from NBFCs as it believes that there is good opportunity to expandits loan portfolio at attractive rates. Your Bank is looking for opportunities both inpriority and non-priority sectors. Your Bank had initially planned for a growth of `15000 crorethrough portfolio purchase during the current year which is now being enhanced.


1. Special Projects

IFSC Banking Unit at GIFT SEZ: The Chairman inaugurated yourBank's IFSC Unit(IBU)atInternationalFinancialServices Centre (IFSC) located at theGIFT-SEZ Gandhinagar Gujarat. Many developed countries have financial hubs which haveevolved over a period as International Financial Centres (IFC). These centres providesuitable regulatory regimes and create a business environment to attract talent andcapital. Successful IFCs are places where business is conducted between organisations fromall over the world using latest financial technologies and products.

While the 100% tax concession available till 2020 and 50% for the next5 years till 2025 are surely an attraction they are not the only reason why your Bank hasset up an Office in IFSC. The proceeds of ECBs (External Commercial Borrowings)which were hitherto being parked at high cost jurisdictions like London New YorkSingapore and Hong Kong are now being parked at IFSC GIFT City to optimise on the cost.

Initiatives for pilgrims at Kumbh Mela: With an aim to providebanking services to millions of pilgrims and visitors at the Kumbh Mela State Bank ofIndia undertook various initiatives. For the 50-day Prayagraj Kumbh Mela your Bankprovided all the necessary assistance to the devotees in the form of two 14-hours workingState Bank of India branches four ATMs three mobile ATMs as well as a forex counter.

2. Strategy

Following the best global practice your Bank has created the positionof Chief Strategy Officer (CSO) during 2018-19 with the objective of defining journeytowards realising Mission Statement of your Bank and transforming vision of Top Managementinto reality. The position of CSO in your Bank will help in establishing robust strategyframework for enhancing value. The CSO's role also aims for strategic synergy amongstall verticals for enhancing value for Customers Shareholders and Employees.

The CSO addresses both the business and operational strategy of yourBank. The key areas for CSO organisation have been envisaged as below:

Data Analytics - With support of a core effective group ofAnalytics professionals CSO's role is to churn the Bank's own data as well asexternal data to prepare long term insights and actions. The CSO and his team also assistthe senior management with quick analytics for decision making.

Market Research Benchmarking and Competition - The CSO undertakesmarket research and analysis of the key products processes and service lines of thecompetitors on a continuous basis visa-vis our products. This includes service delivery toformulate responsive and creative strategies mostly in collaboration with the leaders ofour Business Units and Field Operations.

Key Project Monitoring - CSO work as a bridge between TopManagement and Business Unit owners and Field Managers to keep key strategic projects ontrack and ensure their speedy and timely implementation.

Few of the projects taken up by CSO for comprehensive improvement ofMarket Share in major cities of the country include

Strategic Tie-up forenhancing the Brand value

Marketing and Branding ofYONO

Realising group synergy

Another strategic initiative taken up by CSO is for BranchTransformation and Re-Imagining of Branch Experience. The objective of the project is todecongest the branches re-design the desks and transform the branches from beingtransaction oriented to business oriented and improve service delivery. Besides severalinitiatives have been taken up for de-cluttering of branches and uniform branch layout foroverall improvement in customer experience.


Your Bank has traditionally been the banker of choice to the Governmentand is the accredited Banker to the major Central Government Ministries and Departments.Being the market leader in Government Business (with a market share of more than 80% inGovernment commission) your Bank is at the forefront in the development of e-Solutionsfor both Central and State Governments. This has facilitated their transition to theonline mode resulting in greater efficiency and transparency. Your Bank is an active stakeholder in theGovernment's latest initiatives namely Government e-Marketplace and is continuouslyengaged in developing customised technology solutions such as e-Tendering e-BG e-Tradeamongst others to keep pace with the Government's digital initiatives.

(Rs. in crore)











With a view to facilitate e-Governance digitisation and bringing inmore efficiency and transparency the following initiatives were implemented during the year:

1. GeM (Govt. e-Marketplace)

State Bank of India is the pioneer amongst Banks for financialintegration of payments to suppliers for procurement of common goods and services throughGeM portal. Five State GeM Pool Accounts were opened at Uttar Pradesh Tamil NaduHimachal Pradesh Puducherry and Gujarat. GeM Pool Accounts of more than 70Autonomous bodies were opened.

2. e-Tendering

Your Bank has implemented the e-Tendering solution for variousdepartments of Maharashtra Punjab Kerala UP and Assam State Government.

3. PMJAY-Ayushman Bharat

Settlement accounts under the scheme were successfully opened in nineStates/ UTs viz Uttar Pradesh Maharashtra West Bengal Assam Puducherry SikkimNagaland Tripura and Andaman and Nicobar Islands.

4. Indian Railways

State Bank of India has completed integration for collection ofApplication fee for recruitment in Railway Protection Force through SB MOPS. MOU withNorthern Railways for Cash Pickup through our empanelled agencies was executed in FY2019covering a Total of nine Railway Zones out of 16.

5. Direct Benefit Transfer (DBT)

State Bank of India is the sole Banker for processing Direct Benefit Transferof LPG subsidy (DBTL). Total number of transactions and amount processed in FY2019 are asfollowing:

No. of transactions




( crore)




DBT (others)




6. Auction of items gifted to Honourable Prime Minister

Your Bank has made its services available for collection of proceedsfrom the auction of items gifted to Honourable Prime Minister at the National Gallery ofModern Arts New Delhi. The event was executed by the Ministry of Culture.

7. National Testing Agency

Successful Payment Gateway integration with National Testing Agency forcollection of examination fees.


SBMOPS was integrated with CBSE platform for fee collection of CBSEaf_liated schools.

9. Pension Payments

State Bank of India has been administering pension payment to 55.57lakh pensioners through its 16 CPPCs making disbursment of total pension amount of morethan `156835 crore. During FY2019 2.79 lakh new pension accounts and eight AutonomousBodies were on boarded for Pension payments. A number of pensioner connect programmes wereconducted across the country.

10. Small Savings Schemes

State Bank of India services more than 75.79 lakh PPF and 14.79 lakhSSA accounts making it the highest among all the authorised Banks. Additionally 5.78 lakhPPF accounts and 3.16 lakh SSA accounts were added during this FY.

11. Other

Your Bank was accorded an approval for opening 33 Accounts forEnforcement Directorate under Ministry of Finance. Your Bank was chosen as an AggregatorBank for collection of tax and non-tax revenue of the Government of West Bengal. Workshopswere conducted across the country for training the personnel of Implementing Agencies.

12. Awards

Your Bank was awarded First Prize for opening the largest Number ofSukanya Samriddhi Accounts amongst all Banks (Pan India). The award was given at NationalSavings Institute New Delhi on 30th October 2018 to celebrate "WorldThrift Day".


Your Bank's Transaction Banking Unit (TBU) leverages technology toprovide comprehensive solutions for bulk transaction requirement of clients facilitatingtheir efficient funds management along with other value-added services such as customised MISintegration with Corporate ERP and dedicated single point Client Support Cell. TransactionBanking services not only facilitate your Bank to maintain close relationship withclients but also to assess their other Banking requirements such as Credit FundManagement and Cross Selling.

Your Bank offers a wide range of TBU products and services toCorporate Government Departments Financial Institutions and SME Clients. While Corporateand Government clients continue to be the key focus segment Bank is also marketing amongexisting clients as well as start-ups in SME sector.

Keeping in line with market trends your Bank is continuouslyupdating/evolving the bouquet of TBU products/services offered to clients to match thecompetitors' products/services.

TBU Fee Income increasedby 48.50% from `893.66 crore in FY2018 to `1327.08 crore in FY2019. A 30% plusannual growth has been consistently achieved in fee income during the last few years.

TBU Float Income increased by 81.15% from `356.69 crore in FY2018to `646.15 crore in FY2019.

Turnover registered aY-o-Y increase of 78.39% with transactions amounting to `3808314 crore in FY2019 over`2134867 crore in FY2018.

Your Bank was recognisedas "The Best Transaction Bank in India" by The Asian Banker for the second timein a row in 2018.


The Wholesale Banking Business in your Bank focuses on servicingCorporate clients through customised financial solutions such as working capital finance export finance tradetransactions and foreign currency loans. It comprises of several teams focused on specific areassuch as specialisation of product offerings acquiring new business and generating newincome streams with continuous focus on profitability and risk mitigation.


The Corporate Accounts Group (CAG) is a dedicated vertical handling the"large credit portfolio" of your Bank through 4 offices in 3 Centres viz.Mumbai with two branches and one each inDelhi and Chennai. CAG now is a super specialisedset-up handling 29 top rated Business Group accounts and 66 Non-group accounts to ensurethat the quality of service for these prioritised relationships is maintained as the bestin the class.

The business model of CAG is anchored on the Relationship ManagementConcept wherein each client group is mapped to a Relationship Manager who leads across-functional Client Service Team. The Account Management Teams (AMTs) work on a centralstrategy of delivering integrated and comprehensive financial solutions to the clientsthrough structured products within a strict TurnAround-Time. The principal objective ofthe strategy is to make your Bank the first choice of top corporates.

To firmly align with the changing Banking landscape in June 2018 yourBank undertook a major revamp of Corporate Credit dispensation Structure making it afuture ready set-up to drive sustainable growth. Core objectives of this holistic revampwere strengthening credit risk management function leveraging analytics making aparadigm shift of focus in business from ‘Fund to Fee" and Originate toDistribute (O-t-D) so as to improve Bank's overall wallet share in Corporate BankingBusiness. In addition to credit relationship Bank is now actively looking at customer 360requirements especially in credit light sectors viz - Pharma FMCG IT Auto etc. throughits newly established Credit Light Group (CLG) set within the CAG set up.

A Specialised Group FIG (Financial and Institutional Group) to addresscredit and transactional banking needs of Insurance Companies Brokering Firms Banks(Private and Foreign) and Mutual Funds has also been created within CAG. Both the newlycreated groups have taken off and have started contributing to the Bank's businessgrowth.

Banking technology is revolutionising the way customers engage withtheir finances. Convenience speed and flexibility are no longer considered attractive add-ons but have becomea standard expectation of the rapidly changing customer-Bank relationship. Towards thisend your Bank is investing continuously in building technological capabilities to becomemore agile towards customers' needs. We are currently offering cutting edgetechnology products to our Corporate customers and are using the latest CRM applicationfor customer management.

Overall the Corporate Accounts unit has reoriented itself to focus onthe highest priority and quality individual and group relationships with differentiatedcoverage.

The total post revamped outstanding loans to clients in the CorporateAccounts unit stood at `2.33 lakh crore and `1.68 lakh crore in respect of fund-based andnon-fund-based products as on 31st March 2018 and the corresponding fund basedand non-fund based outstanding are `4.07 lakh crore and `1.75 lakh crore as on 31stMarch 2019 respectively.

Corporate Account Group has been a partner in the industrial growth ofthe country especially in creation and development of critical infrastructure viz Roadsand Highways Ports Power Telecom Petrochemicals etc. and your Bank wishes to continueits contribution to Nation's growth as hitherto.


The Global Markets Unit (GMU) performs the Treasury Operations of yourBank with the objective of managing its liquidity in compliance with regulatoryrequirements mitigating related risks like liquidity risk market risk and operationalrisk. GMU deploys the surplus funds in various investment options based on economicresearch and scenario analysis and optimises risk and returns. The investment book underGlobal Markets stood at `926651 crore at FY2019 as against `1026438 crore as onFY2018. It also provides Foreign Exchange services and hedging instruments to customersacross the country.



GMU is responsible for managing regulatory requirements such as yourBank's SLR/CRR management maintaining HQLAs for LCR amongst others. As interestrate markets saw wild movements during the year RBI increased the overnight repo ratestwice during the year on 7th June 2018 and 2nd August 2018. Afterlow CPI prints and easing of crude price RBI reduced the Repo Rate in its SixthBi-Monthly Monetary Policy dated 07th February 2019 along with change in stancefrom Calibrated Tightening to Neutral. The repo rate stands at 6.25% post February 2019policy and has further been reduced to 6% on 4th April 2019. US Federal Reservewas also on a hiking spree by increasing the Fed Target rates four times during thecalendar year 2018. With the last rate hike in December 2018 the Fed rate now stands at2.50% as on 31st March 2019.

On the domestic front the movement of Interest rates was volatile. Thebenchmark 10Y security (7.17 CG-Sec 2028) which was trading at 7.40% at the beginning ofFY2019 touched a peak of 8.18% on 11th September 2018 before touching a low of7.22% on 19th December 2018. Excess supply in State Development Loansdepreciation in domestic currency increase in crude prices made the year a roller coasterride for yields. Due to this volatility your Bank made provisions on investments.

By the beginning of Q2 FY2019 the system liquidity turned negativewhich got aggravated due to the NBFC crisis in the month of September 2018. The liquidityshortfall prompted RBI to conduct Open Market Operations (OMO) to improve the systemliquidity. The OMO helped to reduce the excess SLR holding of Banks and alleviated thesupply pressures. This resulted in easing of 10-year G-Sec yield.

During the year with the credit growth outstripping the depositgrowth your Bank's SLR portfolio was brought down in a calibrated manner to generateliquidity. However in view of the elevated yield levels your Bank increased theCorporate Bond portfolio as a measure of improving the overall portfolio yield. NetInterest Income stood at `88349 crore as against `74854 crore for FY2018. Profit on sale ofinvestments is at `1023 crore against `12303 crore for FY2018.


The equity markets touched its all-time high levels in FY2019. Postdefault by IL&FS and on NBFC liquidity concerns market saw sharp correction in theBenchmark indices. However market rallied sharply towards the end of the financial yeardue to strong inflows from FIIs and Nifty ended with 14.93% gains in FY2019. The outcomeof General elections Fed Policy actions expectation of Global economic slowdown and theincreasing tension on trade war is expected to keep volatility on the higher side. YourBank has managed its equity portfolio following a strategy of actively rebalancing theportfolio based on key events global and domestic market conditions quarterly earningsof the companies and their future outlook. In addition to the secondary market your Bankcontinues to profitably invest in IPOs to improve the return on the portfolio.


The GMU handles the foreign exchange business of your Bank providingsolutions to customers for managing their currency flows and hedging risks throughoptions swaps and forwards in addition to providing liquidity to markets. Your Bank is adominant player in Rupee Spot and Rupee Forward markets and has a sufficiently highmarket share in customer foreign exchange flows. Your Bank is the leader inproviding liquidity in CCIL Fx Clear platform. The volume generated in Currency Futuresputs your Bank in the bracket of top three client Banks of exchange houses.

GMU manages the FCNR (B) deposit corpus of your Bank and provides FCNR(B) loans and Pre and Post shipment Export Finance in foreign currency to its customers.Your Bank also provides funding support to Bank's Foreign Operations wheneverrequired. On technological front your Bank keeps pace with the best currently in vogue.

Treasury Marketing Group (TMG) is the customer engagement arm of GlobalMarkets and plays a pivotal role in marketing of Treasury Products to Institutional andCorporate clients of your Bank. Treasury Marketing Units located across the country arethe face of Global Markets to the customers. They interact with the customers dailyidentify their needs and coordinate with other business units for pricing productstructuring and delivery.

Foreign Investments and Institutional Treasury sales desk is part ofTMG. It is responsible for mobilising treasury business from Foreign Portfolio Investors(FPI)/Foreign Direct Investment (FDI) clients and financial institutions.

Private Equity/Venture Capital Fund

The JV setup with Macquarie and IFC in 2008 to manage the US$ 1.2billion India-focused PE fund is currently in the exit phase and has successfully exitedfrom two road assets during FY2019.

The Oman India Joint Investment Fund (OIJIF) a JV set up in 2010 inpartnership with State General Reserve Fund of Oman has completed its investments forFund-I of US$ 100 million. Fund-I has made two full exits and one partial exit. On theother hand Fund-II with a target corpus of US$300 million launched in 2017 has raisedcommitments of US$ 230 million and has deployed `450 crore across three assets. Fund-IIcontinues to assess various investment opportunities.

During FY2019 your Bank made partial divestment from its strategicinvestment in National Stock Exchange. Additionally it made investment commitments in itsAlternative Investment Funds portfolio across investment themes such as Special SituationsFunds funds focused on investing in mid-market growth stage companies and technology.

Portfolio Management Services (PMS)

The Bank is the largest retirement benefit fund manager in the country withan impeccable track record. The total AUM as on 31st March 2019 is `508230crore. Major clients include Employees' Provident Fund Organisation SBI Retirement Benefit FundsCoal Mines Provident Fund Organisation Kendriya Vidyalaya Sanghthan Employees'Provident Fund and Seamen's Provident Fund Organisation. The Bank also assists itsRRBs in managing their SLR Portfolio. However the PMS activity of the Bank is beingclosed by 31st March 2019 as per RBI's directives.

Global Presence

International Operations of your Bank were guided by the overarchingprinciple of supporting global Indian corporates and Indian diaspora spread across thegeographies. However the focus of State Bank of India has slowly shifted from itsreliance on the India based business to claim its place in the overseas local markets inline with its vision to become a truly International Bank. Consequently it has a separateBusiness Unit - International Banking Group (IBG) headed by the Managing Director(GB&S)

The breakup of overseas offices of our Bank: and supported bythe Deputy Managing Director (IBG) for its overseas operations.

Your Bank's first global footprint was with the branch of Bank of Madras in ColomboSri Lanka in July 1864 (First amongst Indian Banks). With a presence across all timezones through 208 offices in 34 countries State Bank of India has gradually spread itswings across the globe and has become a pioneer of International Banking among the IndianPSBs. These offices are being managed by the IBG.

Overseas Offices as on 31.03.2018

Offices opened during last 12 months

Offices closed during last 12 months

Overseas Offices as on 31.03.2019

Total Overseas Business Volume

Branches /Sub-Offices / Other Offices










Offices of Subsidiaries





Representative Offices




Net Profit

JV/ Associates / Managed exchange Cos /Investments









499.31 mio


*12 Branches shifted to SBI UK Limited (Subsidiary)

During FY2019 your Bank has endeavoured to consolidate and strengthenits overseas operations in line with the Public-Sector Banks Reforms Agenda envisaged bythe Department of Financial Services Government of India in order to achieve capitalconservation cost efficiencies and to build synergies in overseas markets. As a result yourBank has rationalised its overseas operations by closing two Sub-offices- Laudium and Capetownin South Africa one branch in Jaffna Sri Lanka one Representative office in CairoEgypt and consolidated its India Visa Application Centres (IVACs) in Bangladesh by mergingthree IVACs at Shyamoli (Previously Dhanmondi) Uttara and Dhaka at Jamuna Park. In theoverseas subsidiary-SBI Indonesia Limited two Sub-branches Jatinegra Kebonjeruk weremerged with

Jakarta Main branch and one Sub-branch Buah Batu was merged withBandung branch. During this period a Remittance Centre was started in Singapore tofacilitate remittances for expat blue collar workers. Further in line with our growthstrategy in SAARC region Nepal SBI Bank Limited a subsidiary of State Bank of India hasopened ten offices. Furthermore twelve retail branches of UK were carved out fromyour Bank's UK operations to form the overseas Subsidiary- State Bank of India (UK)Limited.

Year after year your Bank is consistently creating value for investorsby generating good returns and profits. The International Banking arm has consistently been a majorcontributor in profit even during the recent troubled times.

The IBG has contributed immensely in transforming the industrylandscape of the country by positioning itself in the growth trajectory of the economywith its specialised verticals offering their expertise and services on various frontsthus playing its part in building the momentum for a transforming India in tandem with thefollowing other drivers:

1. Credit Contribution: Business Driver

Your Bank has facilitated Indian corporates in their growth strategyincluding Green Field ventures by arranging debt in Foreign Currency by way of ExternalCommercial Borrowings through syndicated deals in conjunction with other Indian andForeign Banks and through bilateral arrangements. As a recognition of its exemplaryefforts your Bank was chosen as the "Syndicated Loan House of the Year" - Indiaby APLMA (Asia Pacific Loan Market Association).

State Bank of India has sanctioned Foreign Currency loans to the tuneof USD 12.91 billion to Indian corporates and USD 10.36 billion loans to overseasentities. Your Bank has also funded a top Indian pharmaceutical company for its overseasacquisition during the year. In the field of Energy your Bank was active in funding Oil Marketing companiesfor their working capital requirement after recent Special Dispensation which has significantstrategic importance to India both in terms of augmenting India's Energy Securityamid unstable Crude and Forex prices. In the field of Power your Bank has alwaysbeen the leader in providing the External Commercial Borrowings to power sector companiesand NBFCs engaged in on-lending to power sector. Presently your Bank offers a wide rangeof products and services to exporters and importers through an extensive well equippedbranch network that operates domestically and internationally.

2. Retail and Remittances Strategy

Your Bank was a "window to India" for NRIs residing indifferent parts of the world through its specialised retail and remittances products. AsIT infrastructure is the bedrock for improving customer offerings in Retail andremittances segment a detailed IT strategy was put in place for implementation of ITenablers. The highlights of the year are:

Remittance businessstrategy was re-imagined by focusing on developing various area specific payment and remittancecorridors such as Gulf to Nepal and Gulf to Sri Lanka.

SBI Rupee Express whichprovides real time convenient reliable and cost saving remittance system to expatriatesfor remittance to India was launched in SBI Indonesia (SBI Subsidiary).

Remittance through UPIlaunched in Singapore

ATM Card Hot listing andATM Card requests through Internet Banking (FEBA) installed in 11 identifiedterritories.

CRM Solution issuccessfully launched in 13 identified countries.

Remittance from USA toIndia through Transfast Remittance LLC USA was launched.

3. Global Payments and Services

Global Payments and Services (GP&S) a unit of your Bankfacilitates online inward remittances from overseas locations to India Foreign CurrencyCheque collection Opening and Maintenance of Vostro Accounts Asian Clearing Union (ACU)Transactions and Bank for Foreign Economic Affairs (BFEA) of USSR section. The highlightsof the year are:

Tie-up with 55 ExchangeCompanies and six Banks and one Money Service Business for channelising inward rupeeremittances from overseas to India

Compliance frameworkstrengthened for enhanced post transaction monitoring through an application calledAMLOCK related to remittances.

4. Trade Finance

State Bank of India provides a slew of Trade Finance products andservices to exporters and importers through an extensive well equipped branch networkthat operates in all time zones in India and abroad. The business is monitored through afocused Department Global Trade Department (GTD) in IBG. Trade Finance forms a significant partof the International Asset portfolio. State Bank of India being one of the top globalBanks provides low cost trade finance to Indian corporates for their imports.

To support Trade Credit for imports to India your Bank has introduceda new product namely - Non-LC Reimbursement Finance (NLRF) to cater import financing forBank's domestic branch customers and also through its another product called SBLCbacked Buyers Credit your Bank renders its trade finance service to importer customersof other Indian Banks.

State Bank of India has recently been awarded as "The Best TradeFinance Provider (India) -2019" for the eighth consecutive year by Global FinanceMagazine and as the "Best Trade Finance Bank in South Asia - 2018" by GlobalTrade Review.

5. International Banking-Domestic (IBD)

IB-Domestic department at IBG of your Bank serves as a single point ofcontact for the Domestic Offices and Foreign Offices in areas related to Trade Finance and International Banking ondomestic front. A Centralised Co-ordination Cell for processing Inward Foreign BankGuarantee (CCC-FBG) had been set up under the ownership of IB-Domestic to provide a singlestop solution for Correspondent Banks/ Foreign Offices seeking Foreign Bank Guaranteesbased on their counter Guarantees. Recently Outward Foreign Bank Guarantee cell hasstarted functioning under CCC-FBG with a view to further provide momentum to InwardForeign Bank Guarantee business.

In order to provide momentum to Domestic Trade activity and to addressthe regulatory concerns as well as to keep in line with the market forces IB-Domestic isvigorously involved in introducing latest technological tools and product innovations.Moreover IBD is coordinating and liaising with trade bodies and ICC subgroups fordeveloping relations and strengthening ties. It contributes immensely in synergising Forexbusiness flows from Domestic Offices to Foreign Offices / Foreign Correspondent Banks and trade community by acting as arobust link between them and addressing regulatory gaps.

6. Overseas Treasury Management

Treasury Management Group at IBG of the State Bank of India known formanaging the liquidity dealing room operations and investments of foreign offices haspriced your Bank's inaugural USD denominated public green bond for USD 650 millionunder MTN Program in

September 2018 and Standalone Reg-S/ 144A USD issuance for USD 1250million in January 2019. The green bond was the first public USD bond issued by anIndian public sector Bank in the fiscal year for which your Bank has received "Green Bond PioneerAward" for being the largest new emerging markets Certified Climate Bond issuer of 2018 byClimate Bond Initiative. These issues were listed on the Singapore Exchange SecuritiesTrading Limited (Singapore SGX) and the India International Exchange (India INX). Nimblefooted transactions were executed in a narrow window during a period of currency and ratemarket volatility. The successful issuances demonstrate a strong investor base which theBank has created for itself in offshore capital markets allowing it to efficiently raisefunds from world's leading fixed income investors even during the periods of heightened currencyand rates volatility.

Investment book of IBG currently stands at USD 6.80 billion holdinginvestments in high rated and liquid scrips which provide stable interest income for IBGwith low/ medium risk. The Treasury Management group monitors Dealing Rooms at majorcentres to facilitate Money Market Forex and Derivative functions at Foreign offices.Currently there are four major dealing rooms at London New York Hong Kong and Bahrainwhich work on a hub and spoke model to help smaller Foreign Offices in their operations.Dealing room operations also provide hedging solutions to the balance sheet in optimummanner.

7. Overseas IT Initiatives

Your Bank continues to leverage technology solutions to automateprocesses enhance customer experience and manage risk. The initiatives undertaken at ouroverseas offices include:

1. YONO (You Only Need One) one of the most ambitious and securedigital offerings of your Bank is being extended to overseas offices during FY2020.

2. Online Account Opening Facility is being extended to customers atoverseas offices.

3. Additional functionalities were introduced in Finacle E-BankingApplication (FEBA) for a better digital banking experience to the customers.

4. Implementation of a new Anti-Money Laundering solution (FICOTonbeller) to efficiently counter money-laundering risks and events through onlinescreening of transactions / SWIFT messages customer on-boarding risk scoring andtransaction monitoring.

5. Enhancing the security of ATM/Debit Cards by introducing additionalcard management functionalities in the online banking platform (FEBA viz. Hot listing ofCards New Card Activation New Card Request Green PIN Limit change).

6. SWIFT Operational Controls were strengthened in tune with regulatoryguidelines by implementing Straight Through Processing between Core Banking System andSWIFT messaging system and enforcing user restrictions.

7. Technology Risk Management initiatives included upgradation of Networking Equipmentimplementation of Standardised Information Security and Incident Management FrameworkPlans for FY2020.

8. The websites of overseas offices were standardised to provide auniform look and feel for a better user experience.

9. Leveraged Data Analytics for Product Innovation and Marketing FraudRisk Management Regulatory Reporting Early Warning Signal for Loans and TransactionMonitoring.

8. Financial Institutions Group - Correspondent Relations

The Group on one hand enables linkages of your Bank withinternational stakeholders viz. Correspondent Banks Foreign Government Agencies andDevelopmental Financial Institutions International Chamber of Commerce amongst othersand on the other hand facilitates synergy between IBG and other Business Verticals suchas Corporate Accounts Group Commercial Clients Group and Global Markets amongst others.The key highlights during FY2019 were: Focused on creating valuable relationships globally by collaborationwith Financial Institutions for delivering better value to our stakeholders in the valuechain. Furthermore your Bank maintains relationship with 235 Banks in 57 countries andperiodically reviews its relationship based on your Bank's internal policies localcountry guidelines and sanction terms. There has been an increased focus for FI Businessby leveraging the relationship with Major Global and Regional Banks. Actively engaged with IT Innovation teams of the Bank for bringing in technologicaladvances in the correspondent Banking landscape and also by partnering with major GlobalBanks. Product focus areas include Trade Finance Credit Treasury DebtCapital Markets Forex Business Transaction Banking Remittances and Currency Clearing. Representative offices of SBI in Dubai Abu Dhabi Istanbul Sao Paulo Tehran Manilaand Washington are engaged in marketing activities for assets and liabilities support foryour Bank's Foreign Offices from Financial Institutions and extending support to the localcorporates and NRIs. Your Bank has always been an integral part of the growth strategyof the Indian economy and is on the forefront in stimulating growth and facilitatingopportunities for building momentum towards a transforming India.



The Corporate Credit Structure and System in your Bank was revamped tosetup a future ready organisation to manage the risks and sustain growth. There was areorientation of CAG to focus on the highest priority and quality individual and grouprelationships with differentiated coverage. The CCG is formed for consolidation of selectcorporate client accounts across CAG MCG and NBG verticals based on a criterion decidedby your Bank. This includes rationalisation of the remaining CAG branches and existing MCGbranches into 47 CCG branches. The CCG vertical is headed by a MD and supported by a DMD five CGMs andother functionaries.

CGMs in the CCG are assigned as the group relationship owners in orderto improve the quality of coverage and enable an integrated view on exposure earningsamongst others across the entire group. Your Bank has set up experienced team of‘Structuring Specialists' to support deal structuring for large proposals acrosslending bonds International Banking and Structured / Mezzanine Finance.

The Non- food domestic advances level in CCG at the end of FY2019 was at `400766crore registering a YoY growth of 3.93 %. The Yield on Advances in CCG has improved from7.50% as on Mar'18 to 8.68% as on March 2019 recording a growth of 118 bps. Duringthe same period business per employee has gone up from `121.73 crore as on March 2018to `146.72 crore as on March 2019. Profit per employee has improved from `1.98 crore as on March 2018 to`3.99 crore as on March 2019. Cost to Income Ratio has declined by 295 bps during the yeargoing down from 9.25% as on March 2018 to 6.30 % as on March 2019. On the recoveryfront CCG was successful in recovering `1364 crore in Advance Under Collection Accountunder IBC / NCLT mechanism during the said period.

The group continues to provide a robust platform to its customers forTrade Finance and Forex business.

CCG is at a very advanced stage of launching YONO for Corporates. Thisis going to provide a very user-friendly digital platform for Corporates for transactionbanking as well as Trade Finance Business.


In contrast to the challenges faced by PFSBU during the previous yearwhich saw stressed accounts becoming NPA particularly on Thermal Power Road sectorTelecom among other sectors this fiscal year 2019 started with a cautious optimism based on learnings fromthe past experiences. Policy for funding Renewable City Gas Distribution and

Hybrid Annuity Model in Road sector were framed to mitigate the risksinvolved. The sectors which showed signs of revival were Roads Oil and Gas RenewablePower Cement Fertiliser amongst others. The stressed accounts mainly comprising ofThermal Power Road sector accounts have been transferred to SARG for resolution.Experienced officials are being recruited from different industries to provideStructuring Solutions to our clients. Chartered Accountants are being employed by yourBank to plug income leakages to boost fee income.

Your Bank's Special Business Unit known as Project Finance andStructuring (PFSBU) deals with the appraisal and arrangement of funds for large projectsin infrastructure and other sectors such as Power Roads Ports Railways Airportsamongst others. It also covers other non-infrastructure projects in sectors viz. MetalsFertilisers Cements Oil and Gas amongst others with certain threshold on minimumProject Cost. PFSBU also provides support to other verticals for vetting their largeticket term loan proposals. In order to strengthen the policy and regulatory framework forfinancinginfrastructure inputs are provided to various Ministries of Government of India and theRBI with respect to lenders views on new policies Model Concession Agreements and broaderissues being faced in infrastructure finance.

Project Finance and Structuring Business Performance:

(Rs. in crore)




Project Cost




Project Debt




Sanctioned Amount




Syndication Amount






1. Over the last few years there has been a significant rise in the GrossNon-Performing Assets (GNPA) in the Banking Industry. However in the first half ofFY2019 the GNPA of the SCBs declined which can be attributed to the following factors: i. Resolution ofa few high value NPA accounts from the 1st and 2nd RBI list ofaccounts referred to NCLT under IBC 2016. ii. A revival in economic growthconditions of India in FY2018 leading to control in fresh slippages. iii. Favourableoutlook of steel sector which was under stress over past few years. Mainly driven byincrease in demand consumption and simultaneous imposition of anti-dumping safeguardduties as well as minimum import prices the sector has yielded some good recoveries inNPA. iv.Strengthening of due diligence credit appraisal and loan monitoring systems in theBanking industry. v. Significant improvement in the Ease of Doing Business ranking for India at77th position from 130th rank due to two successive jumps i.e. 30positions in 2017 rankings and 23 positions in 2018. It reflects the adoption of global bestpractices in business reforms. vi. Stabilisation after facing short term impacts of demonetisationand implementation of GST. vii. Greater interest evinced by ARCs and NBFCs in purchase ofimpaired/ stressed assets backed by foreign investments.

2. According to the Financial Stability Report of RBI for December2018 in a sign of possible recovery from the impaired asset load the asset quality ofBanks showed an improvement with the Gross Non-Performing Assets (GNPA) ratio of SCBsdeclining from 11.5% in March 2018 to 10.8% in September 2018. Further the resilienceof the Indian banking system against macroeconomic shocks was tested through macro stresstests. The results of macro tests suggest that the GNPA of all SCBs may come down from10.8% in September 2018 to 10.3% by March 2019. Moreover sensitivity analysis conductedto study the resilience of SCBs with respect to credit interest rate equity prices andliquidity risks predicts that a severe credit shock is likely to impact the capitaladequacy and profitability of a significant number of Banks mostly PSBs.

3. The movement of NPAs in the Banking industry and recovery inWritten-off accounts during the last four years are furnished below:

(Rs. in crore)





Gross NPA





Gross NPA%





Net NPA%





Fresh Slippages +





Increase in O/s
Cash Recoveries / Up- gradations










Recoveries in AUCA











4. The Government of India in its Reforms Agenda for Responsive andResponsible PSBs has directed creation of a Stressed Assets Management Vertical (SAMV).Your Bank takes immense pride for being a pioneer in establishing a dedicated verticalalmost decade and a half back by establishing Stressed Assets Management Group (SAMG)during FY2005. In order to focus towards resolution of stressed accounts SAMG was renamedas Stressed Assets Resolution Group (SARG) which continues to work as a specialisedvertical for efficient resolution of high value NPAs. The structure of SARG has beenrevamped to give focussed approach for resolution of stressed assets across varioussectors. At present the vertical is headed by a Deputy Managing Director and three ChiefGeneral Managers overseeing the specialised sector AMTs functioning under the leadershipof seven General Managers. SARG has turned into a centre of excellence in resolution ofNPA and stressed assets. As on March 2019 SARG has

20 Stressed Assets Management Branches (SAMBs) and 56 Stressed AssetsRecovery Branches (SARBs) across the country covering 70.62% and 83.71% of yourBank's Non-Performing Assets (NPAs) and Advances under Collection Account (AUCA)respectively.

5. Besides initiating hard recovery measures SARG introduced certaininnovative methods and gave first mover advantage to your Bank in areas such as arranging Megae-Auction of large number of properties on Pan-India basis identification of un-encumberedproperties of the borrowers / guarantors and arranging for attachment of properties beforejudgement. The cases referred to NCLT for resolution are monitored at a specialised cellat SARG. A total of 442 cases have been referred to NCLT out of which 350 cases wereadmitted. Furthermore 18 cases have been resolved including a few high value cases fromthe 1st list of 12 accounts.

6. A significant portion of the recovery in SARG comes from Compromise and Saleof Assets to ARCs. The vertical also implements special OTS schemes (Non-discretionary andNon-discriminatory) from time to time giving the borrowers a onetime opportunity tosettle their dues. A team is set up to look after the sale of Assets to AssetReconstruction Companies (ARCs) on Cash and Security Receipts (SR) basis.

The recovery in NPA and AUCA accounts in SARG through various modes isrepresented below:

Total Recovery (`in Crs)

7. Today SARG stands as one of the most important verticals of yourBank when the GNPA of your Bank has already peaked and is on course of a downwardjourney. Though the credit growth is picking up steadily and performance of treasuryoperations is dependent on market rates the importance of NPA resolution/ recovery bySARG is significant as it directly impacts your Bank's performance. Resolutionof stressed assets by SARG presents the following latent income generating avenues for yourBank: i. Cash recovery in NPAs and AUCA; ii. Up-gradation of accounts; iii. Reductionin loan loss provisions; iv. Reduced capital requirement;

All the above stated avenues directly contribute to your Bank'sbottom-line. Further they improve overall asset quality laying foundation for creditoff-take and indirectly contribute towards generation of interest income.

8. Enactment of Insolvency and Bankruptcy Code (IBC) 2016 forresolution of Stressed/NPA assets has provided Banks with a time bound transparent andeffective mechanism to tackle stressed assets. It has led to an efficient price discovery andtransparent resolution of accounts resulting in unlocking maximum value in the assetscharged to your Bank. A significant portion of recoveries in FY2019 have come through this route.Some of the large accounts from 1st and 2nd list of accountsreferred to NCLT directed by RBI have been resolved and a few more are expected withresolution plans already in place. This has helped in strengthening your Bank'sbalance sheet and provides the opportunity to deploy the realised funds into incomeyielding assets.




Your Bank has beenmaintaining its leadership position in the banking industry by leveraging its corestrengths. The Human Resources of your Bank has been a strategic partner while performingthe role of a catalyst in implementing the various business strategies. This has been madepossible with the workforce channelising and harnessing their optimum potential andprofoundly impacting the value generation in the desired direction. Your Bank's HumanResources has aligned the policy processes and systems towards creating enablers forachieving your Bank's ‘Vision' with set ‘Values'. Many initiatives have been undertaken during the year in the Human Resources space in theareas of automation and streamlining of systems and processes design and redesign ofvalue preposition that each intervention brings to the fore to increase efficiency andcreate a pleasant environment at the work place. There has been a paradigm shift in theapproach of handling the increasing aspirations of the Bank's changed workforcedemographics with more Millennial and Generation Z joining. The summarisedHR Profile of the Bank as on 31.03.2019 is as under:










Subordinate staff and Others







1. Vision Mission and Values

Your Bank has beencontinuously engaged in providing ethical awareness in the organisation as a culturalpremise. Your Bank has come out with a Code of Ethics synchronised around normativecommitments to its stakeholder's viz. values of STEPS (Service Transparency EthicsPoliteness and Sustainability) with the purpose of articulating your Bank's new VisionMission and Values Statement. Your Bank believes that ethics is a perpetual process ofinfusing excellence in its operational fabric and will go on making consistent endeavours to shape themoral sensibilities of the rank and file of the organisation.

2. HR Function Revamp

Your Bank has undertakeninitiatives in HR Automation to streamline the Human Resource processes. Furthermore yourBank has taken steps towards centralisation of Human Resources for seamless processexecution uniform implementation and better control and quality of key HR functionsunder seven project streams- Introduction of Organisational Structure in HRMS data cleaningbringing Employee Payments on HRMS efficiency enablers for seamless flow of HR operations in HRMS creatingan interface between relevant employee information with HRMS automating HR processthrough HRMS and meaningful and timely HR related MIS.

3. Productivity Enhancement Initiatives

Your Bank adopts anobjective and data driven model for Manpower Planning to ensure optimal utilisation ofHuman Resources. Around 12 out of 82 work drivers of the model based on Time and Motionstudy have been modified for Manpower Planning for the year 2019-20. In addition to thismanpower requests from various units are now being validated based on a footfall studyundertaken by the Analytics department.

The promotion andtransfer process have been streamlined and shall be completed in the first quarter ofthe Financial Year. This will give required assurance and stability to the branches andother units to actively focus on business activities during the major part of the year.

The Career DevelopmentSystem (CDS) has stabilised and has brought greater transparency inclusivenessaccountability and effectiveness in the performance management. The current CDS system isdata backed where targets are set partnering with the business units and constantevaluation of performance has been made possible. Additionally the CDS system has becomerobust by operating through its five functional levers- ‘Strategic alignment'‘Stakeholder Commitment' ‘SMART goals' ‘At least one roleper employee' and 'Constant Evaluation'.

An employee opinionsurvey on CDS was held during the year to understand the perception reach acceptancefamiliarity and expectations of the employees and modifications were implemented based onthe feedback. Moreover it helped to bring refinement and transparency to thesystem. A structured feedback mechanism as a part of the performance evaluation has beenintroduced in your Bank to develop and drive a cultural change. Consciousefforts were made to bring more employees under Budgetary/ Measurable roles. As on date morethan 95% of the total roles in CDS system are budgetary/measurable. In case ofnon-measurable roles KRAs have been made objective in nature. Furthermore yourBank's goals and corporate concerns are built on parameters of the Competency mappingframework. Additionally competency mapping parameters were revised to align them with theorganisational goals by finalising 15 parameters for DGM grade and above and 10parameters for the AGM grade. Your Bank has formulated a policy on Succession Planning for theSenior Leadership positions to ensure smooth transition at the critical executive levelpositions. Under this the eligible executives in the rank of GM and DGM were evaluated and identified aspotential successors for one or more critical profiles. In addition to this identifiedpotential successors are provided with individual development and training plans.Likewise the framework ensures that your Bank has a necessary talent pipeline for smoothtransition.

4. Recruitment

Your Bank has streamlinedthe recruitment process with the implementation of a regular recruitment calendar and byleveraging Information Technology. During FY2019 around 2003 Probationary Officers and 7954Junior Associates were recruited.

Your Bank is actively recruiting specialised talent on lateral andcontractual basis in the areas of Wealth Management Information Technology InformationSecurity Risk Credit among others in order to meet the demands of the fast-changingbusiness landscape.

Specialised recruitments have been done where requisite skills arenot available and skills development may take time especially in the fields ofMarketing Information Technology Credit and Risk Human Resources Analytics WealthManagement etc. Moreover domain experts have been hired for the required competitiveedge. 692 specialists have been hired during FY2019.

HR specialists in thedomains - manpower planning recruitment and internal communication have been recruitedto enhance HR Management skills.

5. Employee Engagement Initiatives

Employee engagement iscritical to organisational success. It has been a constant endeavour of your Bank toreduce the pain points and ensure pleasant employee experience during their journey withState Bank of India.

To streamline the on-boardingprocess of new recruits your Bank has introduced an ‘On boarding portal'.Consequently it will improve employee experience as they will not be required to provideinformation and documents multiple times. Also this will enable the HR functionaries toaccess information of new joiners onboarding on real time basis.

‘Sanjeevani': State Bank of India's HR helplineintroduced in your Bank offers speedy resolutions within three days of lodging a complaintand has addressed over 20000 queries and grievances. Additionally your Bank has engagedwith the services of trained Counsellors at Sanjeevani. With this the employees may contact theCounsellors to share their issues and concerns which will help in easing stress copingwith work and societal pressures and enable them to perceive the issue in a better way. Your Bank launched during the year Employee Engagement Survey "Abhivyakti"which is among the largest such surveys held. The objective of"Abhivyakti" was to identify the factors that actually drive employees toperform their best and also the ones that limit their performance. The survey drewparticipation of nearly 95% of the employees covered. The survey results have provided onewith comprehensive information regarding opinions of our employees on our performanceculture relationships processes and policies and also on how we go about our work. Thesurvey report and its findings have been analysed by your Bank under various parameters inappropriate contexts and engagement scorecards have been worked out across variousemployee groups. Employees of your Bank share a high sense of pride and belongingness withthe Bank. It is reassuring to note that most of our employees are aware of the long termvision and values of the Bank. The feedback received from the survey will be utilized inredesigning the established policies and to implement key changes in order to increase theefficiency output involvement dedication and productivity of the employees.

6. Gender Diversity

Gender Sensitivity andInclusiveness have always been the corner stone of your Bank's HR policy. Womenrepresent 24.34% of the total work force. Moreover women employees are spread acrossgeographies and different levels of hierarchy. In addition to this more than 2600branches are at present headed by women officers.

Your Bank has a ZeroTolerance Policy towards sexual harassment at workplace and has put in place anappropriate mechanism for prevention as well as redressal of complaints of sexualharassment.

7. Reservations and Equal Opportunity

Your Bank meticulouslyfollows the Government of India directives on Reservation Policy for SC/ST/OBC/PWD. YourBank has representation of SC ST OBCs and differently-abled persons among all the cadresof its work force. Moreover your Bank has implemented reservation applicable to'Economically Weaker Sections' in direct recruitment w.e.f. 1stFebruary 2019 in terms of the Government of India guidelines.

Representation as on 31.03.2019

Out of Which






DAPs *

1 Officers






2 Clerks






3 Sub-staff













* Differently Abled Person

Your Bank has introduced"Equal Opportunity Policy" in terms of ‘Rights of Persons with DisabilitiesAct 2016'. Your Bank takes special care in providing basic amenities assistivedevices and other infrastructure to enable employees with disabilities to effectivelydischarge their duties.

8. Industrial Relations and Staff Welfare

Your Bank has a harmoniousrelationship with the Staff and Officers' Federations. Your Bank has been continuously emphasising ongood and healthy work environment mutual respect and empathy at work place and a goodwork-life balance to foster a healthy and happy workforce. Your Bank hastaken several transformative initiatives during the year in the area of Staff Welfare.These initiatives are crucial to ensure that your Bank remains in the forefront of thebanking sector in India and our employees are equipped to meet the challenges of tomorrow.

9. Care for Retired Employees

Well-being of its retiredemployees continues to be important to your Bank and several initiatives were taken duringthe year for the benefit of the retirees. Membership to Retired Employees Medical Benefit Scheme(REMBS) which was closed a few years ago was reintroduced.

A dedicated online portalfor pensioners was also introduced during the year with the purpose of informationsharing.

The‘Sanjeevani' helpline has also been extended to cover Bank pensioners from the 2ndquarter of FY2019.


The Bank has always promoted a high-performance culture originated inethically and financially sound business practices. The quality and competence of theworkforce is most critical for sustainable results hence over the years it has developedan effective training system which translates your Bank's vision into actionableplans by amplifying the strengths bridging the skill gaps and unleashing the potential ofthe employees. The training system with a classroom training capacity of 4200 people perday caters to the multifaceted skill development needs of more than a quarter millionmulti-generational culturally diverse workforce every year.

State Bank of India has an extensive training infrastructure comprisingof six top-notch Apex Training Institutes (ATIs) and 50 State Bank Institutes of Learningand Development (SBILDs). This is further augmented by experiential tech-enabled onlinecontent Gami_cation Apps Power talks by eminent experts and Mass communicationinterventions for honing the expertise of your Bank's people capital.


With the understanding that in a constantly changing world old wayswon't open new doors the constant endeavour of the training system is to innovate toovercome the challenges of an increasingly volatile financial ecosystem rapid digitaldisruption changing customer demographics and growing competition. Several initiativeshave always been conceptualised with the objective of re-skilling employees to make themfuture ready and relevant in the fast-changing business environment.

1. Radical change in Training System Structure:

This year profoundchanges were implemented in the training system - the ATIs were repositioned as caches ofhigh quality specialty training in areas of Credit International Banking RiskMarketing Rural Banking IT Leadership and Human Resources amongst others and turnedinto umbrella institutes for the SBILDs with hand-picked Advisory Councils comprising oftop Bank officials and eminent educationists/ experts from various fields wereinstituted to mentor each ATI. Experienced Bankers with a passion and _air for teachingwith requisite domain expertise were posted at the ATIs & SBILDs. 95% officers of yourBank attended at least 1 institutional training. Training capacity utilization was morethan 100% State Bank Institute of Leadership (SBIL) Kolkata: TheBank's flagship ATI is a fully operational leading institut-e for training seniorexecutives in the BFSI sector in India and neighbouring countries and is positioningitself as a centre of global excellence for research and training in BFSI sector. Inaddition to various Leadership Development Programmes for in-house participants severalpaid programmes pertaining to BFSI sector were launched in association with State Bank ofIndia's Knowledge Partners. All AGMs DGMs and GMs were exposed to high endcustomized leadership trainings at State Bank Institute of Leadership Kolkata

2. Complete Redesign of the Training Content

Benchmarking competency:Around 47 critical roles were identified in your Bank which require precise skills to enable holisticcustomer service create a digital mindset and reduce operational and other risks. Hencefor each role mandatory in-house certification courses and comprehensive role manuals were developed andimplemented. This is over and above the external certifications mandated by RBI. Linking Knowledge to Performance: Withthe end-goal of exemplary customer service all employees from Award staff to DMD levelmust obtain internal/ external/edX certifications within stipulated time frame. In FY 18-19 93% of our TopExecutives which includes Deputy General Manager and above completed their mandatorylearnings.

Certifications were linked toperformance appraisal and for officials up to AGM grade for promotion eligibility. 97% Officerscompleted their role relevant certifications. Identify Engage & Develop the talent of POs/TOs/ Millenials:The Bank has completely revamped the training process for Probationary and Trainee Officers whereina fair and holistic evaluation is an ongoing process which incorporates immediatefeedback. Effectively the one-time confirmation test at the end of probation was replaced with a continuousassessment mechanism. 6114 POs/TOs of subsequent concurrent batches have been groomedunder the new policy. 4579 promotees to officer scale across the country were also imparted a uniform 3 weektraining at SBILDs External Training to Junior Associates-Developing a DigitalMindset: Today's young staff can do much more than manning counters. In order tomake them future ready and train them in soft skills digital banking and marketing ofproducts apart from general banking your Bank has provided special training to nearly7000 newly recruited Junior Associates. Cross-Functional Readiness and ManagerialEffectiveness of our Leaders: Personalised Managerial

& Leadership development Plan

- IDPs were devised for TEG Officials under the "CompetencyAssessment and 360degree Feedback Mechanism" for 1142 Top Executives of DGM andabove grades with course correction being carried out with the aid of reference literatureand training interventions.

Approach on External Training to all TEG Leaders: SeniorFunctionaries in the grade of Deputy General Manager and above need to be exposed to highend/ focused external trainings to internalise and adopt the latest concepts thoughts andbest practices to effectively steer the organisation because their management viewsapproach and ethos have a significant impact on your Bank. Consequently an approach was institutedfor a planned and systematic external training intervention for these officials.

Inclusion withAcceptance-Training to Persons with Disabilities(PwD) employees: your Bank impartsspecialised need based training to differently abled employees. An Inclusion Centre at STUoperates to facilitate resolution of issues and address new requirements of differentlyabled staff members. At the instance of the Inclusion Centre special pre-promotiontraining for your Bank's PwD employees was introduced from FY2018-19.

3. Progressive Training Techniques

Non-conventional trainingtechniques: A Gami_cation App- "Play2Learn" was soft launched to supplementthe traditional learning tools for better experience and enhanced retention. Leveragingdigital technologies: A real time help portal ‘ask SBI' was launched with adocument repository of over 23000 to serve as a one-stop knowledge source for allemployees whereby they can access help documents related to operational instructions /guidelines at their workstation. More than 4 lakh queries were originated within 2 weeksof its operationalization.

Developing a High impactlearning culture through self-learning: Our in-house developed e-learning coursewareis platform agnostic and can be accessed through intra and internet for convenient and efficientlearning. your Bank has a repertoire of 807 e-lessons 480 e-capsules and 739 mobilenuggets besides case studies Research Projects and e-publications.

Power Talks- Developing a Global Mindset: As part of"facing outward" initiatives for employees State Bank of India continues toorganise Power Talks by eminent personalities for its workforce. These are broadcast toCircles and are made accessible on the intranet for future reference.

Reducing logisticalchallenges expense and workplace disruption: Rather than imparting role-based trainingin classrooms employees go through the in-house developed role manuals available on theintranet before nominating themselves for short doubt-clearing workshops and examinationat the Training Institutes. 6498 such workshops were organised in FY 2018-19. Case studyand Group discussion pedagogy was adopted for classroom training.

4. Revenue Generation from surplus classroom capacity

Spare capacity at ATIs and SBILDs freed up due to a shift to a newpedagogy and non-traditional teaching techniques is being used for revenue generation bydesigning and marketing of BFSI sector specific paid programmes. The Bank has also licensed use of its LearningManagement System and e-content to select external organisations.

5. Contribution to Nation Building

Responsible Corporate Entity:Various Conclaves and Workshops such as HR Heads Conclave on Re-Vitalising our HumanCapital and PSB Heads workshop on Corporate Governance and Media Management was organisedat SBIL Kolkata to initiate discussions on these key issues within the industry.

Thought Leader in ExecutiveEducation: A workshop on "Navigating Disruption and Managing Innovation in theNew Economy" aimed at bringing together the established players and youngprofessionals with disruptive ideas on a common platform for exchange of ideas and gainingperspective was organised by your Bank in collaboration with Wharton University. It wasattended by top Corporate clients and young professionals and entrepreneurs.

6. R&D

PDRFs: The Bank hasrecruited PostDoctoral Research Fellows (PDRFs) for innovative and high-end researchactivities relevant to the BFSI sector. Moreover they will present papers in National /International conferences and publish their research work in leading internationalpublications to establish State Bank of India's footprint in the domain of BFSIresearch.

Operational Research at ATIs

& SBILDS: In order to create an environment for conductingresearch studies in a focused and meaningful manner Business Units (BUs) were madeProject Owners for practical operational research work on Banking conducted at theInstitutes.

7. Employee Engagement Programme- Nayi Disha:

Your Bank launched "Nayi Disha" an employee engagementprogram with the objective of imparting the significance of staying agile &relevant adopting a growth mindset managing challenges inculcating the Bank'svalues STEPS to improve customer centricity and brand image. 2.40 lakh employees werecovered in 90 days under the Nayi Disha Phase-I themed as "Vision 2030" and allemployees will again be taken through the future phases of this programme which has beendesigned as an ongoing intervention.

8. Awards & Accolades:

The Bank has a training culture of over 90 years and it associates withthe best institutions and industry experts both in India and overseas for designing andimparting in-depth training. As a result the Bank's training programmes haveachieved widespread acceptability and credibility that is acknowledged world-over throughaccolades namely the Business World Award for "Excellence in Learning &Development".

9. Developments

State Bank of India entered in a Memorandum of understanding (MoU) withNational Banking Institute (NBI) Kathmandu (Nepal) to establish a mutually beneficialstrategic alliance for development of NBI's human resources in the areas ofeducation training and research.

Your Bank is all set to offer its academic expertise and traininginfrastructure to train personnel of NBI. To this end SBI will share its availableinfrastructure administrative facilities expertise and experience in terms of Facultyand Research & Development (R&D) in organizing press conferences seminarsworkshops study and group discussions to help research scholars and members of facultyundertake project work and conduct various studies.



Through LLMS an in house developed application the entire life cycleof the credit process has been automated. Besides improving efficiency and reducing TAT ofprocessing of the loan proposals LLMS aims at standardising the credit process as per theextant instructions with a view to managing risk enhancing user experience and providinguseful MIS for better decision making.


Being the Banker to the Nation your Bank is in the forefront inserving the customers hitherto left out of formal financial system. Following are thelatest developments in the direction of FI: Customer Service Points(CSPs) are now offering Banking Services (Enquiry Deposit and Withdrawal) to FI Customersat their Door Step by using Portable Hand Held Devices. Mobile Numberseeding facility has been made available to the FI Customer account through the FI Kiosks.

Additional Fields havebeen added in Kiosk for capturing CSP details to effectively monitor functioning of CSPs.

Aadhaar Authenticationfor PMJJBY PMSBY APY and Green Pin Services have been enabled during the year.


A new subsidiary of your Bank SBI Payment System Private Limited.(SBIPSPL) came into existence on 29th September 2018 in order to tap thegrowing market opportunities. However MAB IT-Operations shall continue to perform all theoperations (like funds settlement handing chargeback disputes etc.) that it was performing hithertoon behalf of SBIPSPL. With 575358 terminals your Bank ranks 2nd in thecountry as on 31st March 2019.


Your Bank is working on special projects to bring better bankingexperience to its customer. Few of the projects are mentioned as under:

sbiINTOUCH: AdvancedKIOSKs facilitating instant account opening and Debit Card Printing to provide better userexperience.

Wealth Management Solution:‘SBI wealth' for PREMIUM customers offering a complete range of FinancialProducts. The new SBI Wealth Transactional Mobile App enables the use of Wealth Managementservices anytime/ anywhere.

CKYC: CKYC Applicationlaunched as per Government of India guidelines to upload the KYC documents to the CERSAIsite and therein generate the CKYC number which are provided to the customers.

OFSAA: OFSAA enables tomeasure and meet risk adjusted performance objectives and facilitates risk-based decisionmaking with greater transparency and efficiency.

CMLS: Centralised Litigation Management System application hasbeen installed with centralised database of all the legal cases by and against the Bank.

ETC FASTag: application facilitates issue of FASTag forvehicles making the process faster and more efficient at Toll Plazas.

GST: Tax and Compliance Engine facilitates timely _ling of GSTRReturns to meet statutory compliance.

Pension Seva: Your Bank serves approximately 55 lakh pensionersacross the country. The new portal ‘Pension Seva' facilitates services likepension slip arrear calculation sheet Form 16 download among others.

Furthermore major events of your Bank are telecasted live to thecustomers through your Bank's corporate website which caters to the customers andhas about 1.50 lakh hits per day.


During the year ATM and Switch department got PCI-DSS certificationwhich will ensure adherence to global standards in enhancing security of card data andrelated environment. Your Bank stands in premier position with 50.95 cr. Debit cardsissued to the customers out of which 29.67 cr. cards are used actively. A unique facility‘YONO-Cash' has been made available to our esteemed customers for card-less cashwithdrawal through ATM using YONO app. Your Bank is the first Bank to test NCMC (NationalCommon Mobility Card) an initiative of GOI successfully on 04.03.2019 at Delhi Metrowhich was launched by Honourable Prime Minister of India Shri Narendra Modi.


Internet Banking continues to provide seamless online experienceoffering diverse Banking services to 581.76 lakh Retails Users and 23.12 lakh CorporateUsers. Many new services like Real Time Demand Loan for e-Commerce transactions UPIPayment Integration for SB Collect Sovereign Gold Bond subscription for Joint Accountholders facility to download Form 16A and Partial MOD breaking facility have been addedto RINB portal during the year. Recurring deposit facility for SARAL Users uploading of financialstatements by Corporate customer Virtual Account Number (VAN) based collection are nowbeing provided through CINB. Over 9939 merchants have been on-boarded during the year tofuel the e-Commerce eco system.


Your Bank provides indigenous unique PCIDSS certified securedePay platform for facilitating seamless e-Commerce transactions between businessmerchants customers and financial institutions for various kinds of payment modes. It offerslarge number of payment options to customers to enable them to pay to the partner Merchantand simultaneously provides platform for Merchants to acquire Bank agnostic large customerbase. The platform is provided through our Payment Aggregator (SBIePay) and PaymentGateway (SBIPG) applications by integrating with thousands of Merchants on the one end andlarge number of Payment Channels like Banks Wallets and Cards at the other end. PaymentGateway also processes all debit/credit card transactions of SB Collect and SBI-MOPS.


Your Bank continues to hold Numero Uno positon in NEFT outwardremittances with 53.03 crore transactions with over 17% market share. In RTGS 1.72 croreoutward transaction were effected implying market share of over 13 %.


Your Bank has a database which is a single trusted source ofstructured data that enables reporting for enhanced business decision support across theBank. The database acts as a downstream for various applications like BusinessIntelligence Analytics YONO CRM OFSAA and many more. Additionally it also plays animportant role in complying with regulatory reporting requirement like CRILC RBS TRANCHEamongst others.

The database is used for analysis of lead generation risk mitigationand improving operational efficiency. Additionally predicative analysis is also done to detect fraudprone branches and also to find delinquencies prone accounts. Also analytics is used to generatelead for pre-approved personal loan (PAPL) in YONO.


CRM Project launched in August 2016 now stands fully implemented inyour Bank. It focuses on providing solutions for integrated management of Sales Servicesand Marketing activities of our customer by providing their 360-degree view. Variousfunctionalities covering Lead Management Modules for different BU's CustomerAnalytics Reports and Dashboards Contact Centre operations amongst others helps increating corporate memory for effective and productive customer engagement.

Additionally processes were earmarked for digitisation in the nearfuture. With this structural transformation to the digital age/ banking your Bank is inthe process of leveraging the CRM tool to use analytics and intelligence. Your Bankbelieves that these digital tools and technology can completely transform the distributionreach of its services and the customer experience in general.


Awards received by your Bank during the year (IT related):

Name of the award Category
The Asian Banker Financial Tech- Won
nology Innovation Awards 2018 1. Best Enterprise Governance Risk and Compliance Initiative Application or Programme (O&TS for merger)
2. Best Lending Initiative Application or Programme-(LLMS)
3. The Best Leadership award to DMD & CIO
4. The Risk Data and Analytics Technology Implementation of the Year(OFASSA)
Asian Banking and Finance Retail Won -Mobile Banking initiative of the year-
Banking Awards YONO
Intelligent Enterprise Award 2018 Won in following two categories
1. Enterprise Mobility-YONO
2. Enterprise application -Merger
IDC (International Data Corporation) Won-NEWS from O&TS under Digital Disruptor category
CIO 100 (International Data Group) CIO 100 (for 4 project-YONOSIASIVAARTCEF)
ASSOCHAM (The Associated Innovative Solutions for Regulatory
Chambers of Commerce and In- dustry of India) Compliances- Merger of eAB's with State Bank of India from (O& TS dept)
PMI India Awards 2018 Project-CBS Merger of e-Associate Banks and eBMB (O&TS)
The Economic Times BFSI Innotribe Best Innovation under BFSI -Won
Summit and Awards 2018 (YONOARTCEFSIVASIA)
ABP News present BFSI Award 2018 Won-Best Bank in Technology Orientation -YONO project
CSI award-IT Innovation & Excel- lence Awards (2018) Won- Best BFSI in terms of Implementations of cognitive technologies. For-i. YONO ii. Block chain iii. Email segregation
Finnoviti Award 2019 Most Innovative project-YONO
IBA Award (14th Banking Technology Awards 2017-18) 1. The Best Technology Bank of the Year- Winner (Large Bank)
2. The Best Financial Inclusion Initiatives (Runner up)
3. The Most Innovative Project using Technology-SIVA



Your Bank has put in place a robust online Complaint Management System(CMS) where customers can lodge their complaints/feedback/suggestion online through thewebsite In addition to this your Bank's Contact Centres arefunctioning 24*7*365 in different geographical areas taking care of customers in HindiEnglish and 10 major regional languages. For educating customers on various products ofelectronic banking channels tech learning centres were established. Moreover your Bankhas accepted the revised code of BCSBI in letter and spirit for achieving excellence incustomer service. Your Bank has introduced a system of collecting feedback of customers inits complaint resolution mechanism to improve the Grievance Redressal procedure.

Several outreach programmes such as Customer Awareness meets StaffTownhall meetings and Customer meets were conducted during the year. In addition to thisCustomer Service Surveys were organised during the year the results of which are beingutilised for improving and enhancing customer experience.

Your Bank is extending a service through which customers can blockhis/her State Bank of India ATM debit card RINB credentials by forwarding thetransactional SMS or email received from the Bank on his/her registered email with Bank ondesignated number 9223008333 / email ID registered with the Bank. Consequently the systemwill immediately block the Debit card/RINB credentials if the customer reports anunauthorised transaction.


During the FinancialYear your Bank commissioned its first advanced ‘TIER- 3' Data Centre at a safe seismic zonein Hyderabad with a capacity to host around 1000 racks. The Data Centre is designed withGreen Building Design concept and is equipped with nine layers of security.

Your Bank's branchesare equipped with 2 Mbps and 4 Mbps internet connections. Additionally National OpticFibre Network (NOFN) connectivity will be implemented at 768 branches to improve ruralbanking.

Network Access Control(NAC) has been implemented for protection from Cyber Attacks in addition to existingservices like Anti-Virus AD among others. NAC prevents access to the network byunauthorised and non-compliant endpoints or devices.

IT Service Management(ITSM) processes have been implemented to manage IT infrastructure.


State Bank IntelligentVoice Assistant (SIVA) is transactional and FAQ Voice Bot powered by emerging technologiesincluding Machine Learning and Natural Language Processing. The objective is to providevoice-based simple alternate banking channel for routine banking needs. YONO Cash will enable card less cash withdrawals (with transaction limits) from ATMsanywhere in the country.

AI based emailsegregation for Complaint Resolution which understands and identifies customer'squeries and directs them to the targeted desk using Machine Learning and Natural Languageprocessing is in progress.

GPS technology enabledMobile app to provide location based CSP Inspection.

Customer Feedbackanalytics to get instant feedback on service quality at the customer home branch.

Branch Darpan: Web baseddashboard for branches and controllers for Brand Building and Customer Service

Centralised Database forPrepaid Payment Instruments



Mobility Management (EMM): This solution facilitates work fromanywhere anytime enhancing employee productivity and efficiency.

OFFICE 365: Enablesemployees to access the Bank's email and other services like One Drive Skype forBusiness Teams Forms among others from anywhere using mobile devices while reducing thedependency on office desktop

In house Centre of Excellencefor LINUX: IT Departments to resolve LINUX related issues thereby reducing dependencyon vendor support system.

SME Gyan and Assist on mobilefor customer onboarding helps: The operating functionaries Branch Heads of SMEIntensive Branches and SMEC staff can keep abreast of current Bank Policies productsservices and schemes.


Post operationalisation of Jio Payments Bank (a 70:30 JV between RILand SBI) Jio and SBI are deepening their partnership to bring next generation bilateralfrictionless experience with exclusive digital Banking Payments and Commerce journeys fortheir customers.

Jio and SBI are entering into a digital partnership aimed to increaseSBI's digital customer base multi-fold. SBI YONO is a revolutionary omni channelplatform offering digital banking commerce and financial superstore services tocustomers. YONO's digital banking features and solutions will be enabled through theMyJio platform for a seamless integrated and superior customer experience. MyJio one ofIndia's largest over-the-top (OTT) mobile applications will now bring in financialservices capabilities of SBI and Jio Payments Bank.

Jio and SBI customers will benefit from Jio Prime a consumerengagement and commerce platform from Reliance. Jio Prime will offer exclusive deals from

Reliance Retail Jio partner brands and merchants. In addition withan integration between SBI Rewardz (existing loyalty program from SBI) and Jio Primecustomers of SBI will be offered additional loyalty reward earning opportunities as wellas broader redemption within Reliance Jio and other online and physical partnerecosystems.

Your Bank will be engaging Jio as one of its preferred partners fordesigning and providing network and connectivity solutions. Jio's highest qualitynetwork in urban and rural regions will allow SBI to launch customer centric services suchas video banking and other on-demand services. Additionally Jio Phones will be availableon special offers for your Bank's customers.



Risk Management at your Bank includes risk identification riskassessment risk measurement and risk mitigation with its main objective to minimisenegative impact on profitability and capital.

Your Bank is exposed to various risks that are an inherent part of anybanking business. The major risks are credit risk market risk liquidity risk andoperational risk which also includes IT risk.

Your Bank is committed towards creating an environment of increasedrisk awareness at all levels. It also aims at constantly upgrading the appropriatesecurity measures including cyber security measures to ensure avoidance or mitigation ofvarious risks. Moreover it is equipped with a Disaster Recovery/ Business Continuity Planacross all its branches and offices to render uninterrupted services in the event of any possiblebusiness disruption.

Your Bank has policies and procedures in place to measure assessmonitor and manage these risks systematically across all its portfolios which makes itamongst the leaders to undertake implementation of the Advanced Approaches under CreditMarket and Operational risk. Aiming to adopt global best practices State Bank of Indiahas also undertaken the Enterprise and Group Risk Management Projects which are beingimplemented with support from external consultants.

RBI Guidelines on Basel III Capital Regulations were implemented andyour Bank is adequately capitalised as per the current requirements under Basel III. Anindependent Risk Governance Structure in line with international bestpractices was put in place in the context of separation of duties and ensuringindependence of Risk Measurement Monitoring and Control functions. This frameworkvisualises empowerment of Business Units at the operating level with technology being thekey driver enabling identification and management of risk at the place of origination. Thevarious risks across your Bank and the SBI Group are monitored and reviewed through theExecutive Level Committees and the Risk Management Committee of the Board (RMCB) whichmeets regularly. Risk Management Committees at Operational unit and Business unit levelare also in place.

1. Credit Risk

Credit Risk is defined as the possibility of losses associated with the diminution in thecredit quality of borrowers or counter- parties from outright default or from reduction inportfolio value. Credit Risk emanates from a Bank's dealings with an individualnon-corporate corporate Bank financial institution or sovereign.

Mitigation Measures

Your Bank has put in strong credit appraisal and risk managementframeworks in place for identification measurement monitoring and control of the risks in creditexposures. Industrial environment is scanned researched and analysed in a structuredmanner by a dedicated team for deciding its outlook and growth appetite for each of the identified 39industries/sectors which constitute about 71% of your Bank's total domesticoutstanding (excluding Retail and Agri). Risks in these sectors are monitored continuouslyand wherever warranted the industries concerned are reviewed immediately. Impact ofevents such as the rise in Crude oil prices policy initiatives taken by the Government inrespect of Telecom and Power sectors impact of increase in production of sugar vis--visreduction in price on the industry impact analysis on awarding of Road projects by NHAIGems and Jewellery to name a few were analysed and appropriate responses to thesesituations were strategised by your Bank to mitigate possible risks. Exposure tosensitive/ stressed sectors such as Real Estate/Telecom are being reviewed at half-yearlyintervals. Sectors such as Power Telecom Iron and Steel Textiles which are goingthrough a challenging phase are watched continuously and analysis of new developments areshared with the business groups to enable them to make informed credit decisions.Knowledge sharing sessions are conducted for the benefit of the operating staff atvarious levels.

Credit rating thresholds for each industry are decided based on theoutlook. Your Bank uses various internal Credit Risk Assessment Models and scorecards forassessing borrower wise credit risk. Models for internal credit ratings of the borrowerswere developed in- house. They are reviewed through cycles of comprehensive validation andback testing frameworks.

It has adopted an IT platform for credit appraisal processes through aLoan Origination Software/Loan Lifecycle Management system (LOS/LLMS). Models developed byyour Bank are hosted on these platforms which are interfaced with CIBIL and RBIdefaulters' lists.

Risk Adjusted Return on Capital (RAROC) framework is in place. TheCustomer level RAROC calculation has also been digitised. Further behavioural models formonitoring and scoring the retail borrower performance were developed and hosted on CreditRisk Data Mart. Your Bank has procured the ORACLE "OFSAA" platform for theCredit Risk Management System and the implementation of the system is being done inphases.

State Bank of India has put improved mechanism in place to manageCredit Concentration Risk by way of risk sensitive Internal Prudential Exposure Limitsframework for single as well as group borrowers. These limits are fixed based onthe internal risk rating of the borrower.

This framework is one step ahead of the regulatory prescription ofPrudential Exposure norms which is ‘one size fits all' in nature. Theseexposure norms are monitored regularly at a defined periodicity.

Your Bank conducts Stress Tests every half-year on its Creditportfolio. Stress Scenarios are regularly updated in line with RBI guidelines industrybest practices and changes in macro-economic variables.

Your Bank undertakes specific analytical studies to identifytrends in movement of NPAs quarterly review of loan sanction time-to-default order to keep track of quality of asset portfolio on regular basis.

RBI has allowed your Bank to participate in the parallel run processfor Foundation Internal Ratings Based (FIRB) under the Advanced Approaches for CreditRisk. The data under parallel run of FIRB is being submitted to RBI. Models for estimationof Probability of Default (PD) Loss Given Default (LGD) and Exposure at Default (EAD) arehosted in Credit Risk Data mart for computation of IRB capital.

A new role of Portfolio management was created under Risk ManagementDepartment. Credit Portfolio Management function will focus on both profitability andrisk view while performing portfolio management activities. Key functions compriseportfolio risk appetite and target definition portfolio packaging risk assessment and review and portfoliooptimisation amongst others.

2. Market Risk

Market Risk is the possibility of loss that your Bank may suffer onaccount of change in value of its trading portfolio on account of market variables suchas exchange rate interest rate and equity price amongst others.

Mitigation Measures

Your Bank's market risk management consists of identification andmeasurement of risks control measures monitoring and reporting systems.

Market risks are controlled through various risk limits such as NetOvernight Open Position Modified Duration PV01 Stop Loss Upper Management ActionTrigger Lower Management Action Trigger Concentration and Exposure Limits.

Value at Risk (VaR) is a tool used for monitoring risk in theBank's trading portfolio. Enterprise level VaR of your Bank is calculated daily andback tested daily. The Stressed VaR for market risk is also computed daily. The VaRmethodology is supplemented by conducting quarterly stress tests of the trading portfolio.

Your Bank has Asset class wise risk limits for its trading portfolioand monitors the same on an ongoing basis. Currently market risk capital is computedunder the Standardised Measurement Method (SMM).

Bank undertakes Risk adjusted performance analysis of its domestic andoverseas portfolios. It also analyses the credit rating migration of non SLR bonds as atool for decision making.

3. Operational Risk

Operational Risk is the risk of loss resulting from inadequate orfailed internal processes people and systems or from external events.

Mitigation Measures

Key elements of your Bank's Operational Risk Management Policyamong others include ongoing review of systems and controls creation of awareness ofoperational risk throughout your Bank timely incident reporting enhancing operationalrisk awareness through RAW (Risk Awareness Workshop) improving early warning informationthrough implementation of Key Indicators (comprising of Key Risk Indicators (KRIs) KeyControl Indicators (KCIs) and Key Process Indicators (KPI) the resolution of risk issuesby effectively tracking and follow- up of outcomes of assessment assigning riskownership aligning risk management activities with business strategy. Your Bank has adetailed Business Continuity Plan (BCP) in place for ensuring continuity of operations atthe branches and Offices during disruptions. BCP enabled us to ensure minimum businessdisruption during the natural disasters such as goods in Kerala and Cyclone in Tamil Naduwhich occurred during the year.

All these components ensure better capital management and improvequality of Bank's services products and processes besides ensuring compliance withregulatory requirements.

For FY2019 your Bank on a stand-alone basis had assigned capital forOperational Risk as per Basic Indicator Approach (BIA).

Your Bank observes Risk Awareness Day on 1st September everyyear. As part of Risk Sensitisation an online Quiz contest was conducted for Staff acrossyour Bank. Further risk culture is being embedded through training to staff at all levelsthrough e-learning lessons.

4. Enterprise Risk

Enterprise Risk Management aims to put in place a comprehensiveframework to manage and align risk with strategy at the whole Bank level. It encompassesglobal best practices such as Risk Appetite Material Risk Assessment and RiskAggregation amongst others.

Mitigation Measures

As part of your Bank's vision to transform the role of Risk into aStrategic function a Board approved Enterprise Risk Management (ERM) Policy is in place.

With an objective of maintaining a sound risk profile your Bankhas developed a Risk Appetite Framework incorporating limits for major risk metrics. Forpromotion of a strong risk culture in your Bank Risk Culture Framework is beingoperationalised in a phased manner.

Your Bank conducts a comprehensive Internal Capital Adequacy AssessmentProcess (ICAAP) exercise on a yearly basis with respect to adequacy of Capital undernormal and stressed conditions. In the ICAAP besides the Pillar 1 risks such as CreditRisk Market Risk and Operational Risk Pillar 2 Risks such as Liquidity RiskInterest Rate Risk in Banking Book (IRRBB) Concentration Risk and others are alsoassessed and capital is provided if required. New and emerging risks are identified anddiscussed in the ICAAP.

5. Group Risk

Group Risk Management aims to put in place standardised risk managementprocesses in Group entities.

Mitigation Measures

Policies relating to Group Risk Management Group Liquidity andContingency Funding Plan (CFP) Arm's Length and Intra Group Transactions andExposures are in place.

Monitoring of consolidated Prudential Exposures and Group Riskcomponents is being done regularly. A quarterly analysis of risk-based parameters forCredit Risk Market Risk Operational Risk and Liquidity Risk amongst others ispresented to the Enterprise and Group Risk Management Committee (EGRMC)/ Risk ManagementCommittee of the Board (RMCB).

The Group Internal Capital Adequacy Assessment Process (Group ICAAP)document includes an assessment of identified risks by Group entities internal controls and mitigationmeasures and capital assessment under normal and stressed conditions. All Group entitieswhere SBI has 20% or more stake and management control including Non- banking entitiescarry out the ICAAP exercise and a Group ICAAP Policy is in place to ensure uniformity.

6. Basel Implementation

Your Bank is identified as D-SIB by the Regulator and is required to keep additionalCommon Equity Tier 1 (CET1) of 0.60% of RWAs applicable from 1st April 2016 ina phased manner and it will become fully effective from 1st April 2019.Additionally it has also started maintaining Capital Conservation Buffer (CCB) in aphased manner and will reach 2.5% by 31st March 2020.


Internal Audit (IA) in your Bank is independent of the auditedactivities and has sufficient standing and authority within your Bank. The IA Department headedby a Deputy Managing Director works under the guidance and supervision of the AuditCommittee of the Board. Your Bank's IA function works in close co-ordination with theRisk Management and Compliance Departments to evaluate effectiveness of controls assesscompliance with controls and adherence to internal processes and procedures. The IAfunction undertakes a comprehensive risk-based audit of the operating units of your Bankin line with regulatory guidelines relating to Risk Based Supervision.

Keeping pace with rapid digitalisation in your Bank the IA functionhas initiated technological interventions for providing enhanced efficiency andeffectiveness through system driven and analytics-based audits.

Some key initiatives include the following:

Web based online RiskFocused Internal Audit (RFIA) for assessing compliance with controls at a granular level.

Analytics basedcontinuous assessment of compliable controls through remote evaluation of big data.

System driven; analyticsbased off-site monitoring of transactions.

Concurrent Audit ofbusiness units to ensure contemporaneous scrutiny of compliances.

Early review of sanctions to assess quality of loans of `1 crore& above.

Online self-audit bybranches for self-assessment by branches and vetting by controllers.

As part of RFIA IA Department conducts various audits viz. CreditAudit Information Systems Audit Cyber Security Audit Home Office Audit (audit of foreignoffices) Concurrent Audit FEMA Audit Audit of Outsourced Activities of your BankExpenditure Audit and Compliance Audit. In addition to this it undertakes ManagementAudit of business verticals to assess their strategic effectiveness and special audits asper the directions of the Audit Committee or the regulators.

Branch Audit

A Department undertakes critical review of the operations of auditeeunits through RFIA an adjunct to Risk Based Supervision as per RBI directives. Thedomestic branches are broadly segregated into three groups (Group I II and III) based onbusiness profile and advances exposures. Your Bank has initiated a system drivenprocess for identification of branches for audit whereby analytical algorithms aredeployed to identify units displaying significantly different behavioural patterns. This enables your Bank tostep in with a prioritised audit to identify the causative factors at these outlierbranches and flag the underlying problem areas for early intervention.

During FY2019 IA Department has audited around 13850 domesticbranches and BPR entities under the RFIA.

Credit Audit

Credit Audit aims at achieving continuous improvement in the quality ofcommercial credit portfolio of your Bank through critically examining individual largecommercial loans with exposures of above `20 crore annually. During the year your Bankhas revamped the Credit Audit process with an introduction of Offsite Independent CreditRisk Assessment for large value loan accounts. Furthermore capability of audit wasenhanced through lateral recruitment of Chartered Accountants for credit audit.

The Credit Audit system provides feedback to the business units aboutthe quality of advance portfolio in the unit and suggests remedial measures.

Early Review of Sanction

Individual accounts with credit exposure of `1 crore & above aresubjected to an off-site early review mechanism (Early Review of Sanction) of thepre-sanction processes. The reviews are carried out within three to four weeks of sanction/enhancement/ renewal to identify the defficiencies if any in the credit underwriting process at an early stageand initiate remedial measures. The ERS system was integrated with loan processingsoftware for seamless real time flow of sanction proposal to the ERS reviewers for online review.

FEMA Audit

The Branches that are authorised to deal (Authorised Dealers) inForeign currency transaction including Trade Finance Centralised Processing Cells-TFCPC are subjected toFEMA audit. Branches with high credit exposures as well as the centralised trade financeprocessing centres are subjected to audit under FEMA at least once every year. Other ADbranches are audited as per their risk profile within a maximum period of 21 months. During FY2019 around 411auditee units were covered under FEMA Audit.

Information System and Cyber Security Audit

State Bank of India's branches are subjected to Information Systemaudits ("IS audits") to assess the IT-related risks as part of RFIA of thebranch(es). IS audit of centralised IT establishments is also carried out by a team of qualified officials whichincludes IS auditors appointed through lateral recruitment. During the period from 1stApril 2018 to 31st March 2019 IS audits of 48 centralised IT establishmentswere completed. In addition a cyber-security audit of your Bank is also executedannually as per the cyber security policy of your Bank.

Foreign Offices Audit

During FY2019 Foreign Office Audit was carried out at 19Foreign Offices and Management Audit was conducted at five Subsidiaries three RepresentativeOffices and six Country Head/Regional Head Offices.

Concurrent Audit System

Concurrent Audit System in your Bank covers advances and other riskexposures as prescribed by the regulatory authority. Additionally it was revamped byrecruiting qualified personnel and placing additional resources at the CentralProcessing Cells to identify and rectify shortcomings in underwriting and controls at avery early stage of the client relationship.

Off-Site Transaction Monitoring System (OTMS)

OTMS in your Bank is a web-based solution which generatesscenario-based alerts for monitoring transactions at branches across the whole Bank and_ags them to the business units for corrective actions. Presently there are 55 types ofscenarios embedded in the system against which the transactions are scrubbed at regularperiods wherein inconsistent transactions are _agged by the system for affirmation of therelated compliances. The scenarios are periodically reviewed and enlarged depending uponthe need and certain triggers.

Legal Audit

Legal Audit in your Bank covers scrutiny of the loan and securityrelated documents of loans amounting to `5 crore and above. Legal audit is a controlfunction carried out through a panel of advocates in addition to the scrutiny by thein-house team of internal auditors to ensure that there are no shortcomings in thedocuments or creation of security in favour of your Bank. Legal Audit was carried out for11602 accounts during FY2019.

Audit of Outsourced Activities

Your Bank recognises the need of service providers engaged with yourBank to be as compliant with the legal and regulatory requirements as your Bank itself.Audit of Outsourced activities is therefore conducted at regular intervals to gain areasonable assurance that adequate systems and procedures are in place to mitigate legal financial andreputational risks that may arise on account of the outsourced activities.

Audit of outsourced activities in your Bank covers audits of vendorsengaged in providing ATM services Corporate Business Correspondents (BC) Individual BCsand CSP Recovery and Resolution agents Cash Management Services Door step BankingCheque Book Printing IT related Services Registrar and Transfer Agents amongst others.

Your Bank has engaged the services of more than 57000 individual BCsand CSPs under financial inclusion plan of which 28245 units were audited by FY2019.

Management Audit

Management Audit covers business verticals Administrative Offices/Departments and examines the strategy processes and risk management practices. Itencompasses Corporate Centre establishments/Circle Local Head Offices and Regional RuralBanks (RRB) sponsored by your Bank. During FY2019 42 establishments/administrative offices wereaudited under Management Audit.


Your Bank operates on the principle of ‘zero tolerance' toregulatory non-compliance and has taken initiatives to strengthen compliance functionwhich is amongst the top most priorities of your Bank.


In order to mitigate risks arising out of non-compliance of KYC normsAML/CFT guidelines your Bank has put in place an approved Board and transparent Know YourCustomer (KYC) Policy incorporating your Bank's framework for customer acceptancecustomer identification monitoring of transactions Customer Risk categorisationand reporting of transactions to Financial Intelligence Unit India (FIU-IND). The policywas updated and subsequent changes as notified by RBI are being circulated through e-Circular for Branches/ Offices forensuring meticulous compliance of the same by the operating functionaries. Your Bank hasput in place a robust system containing a combination of manual and system enabledmethodology to ensure KYC compliance in your Bank.

Your Bank has allotted Uniform Customer Identification Code (UCIC) tothe individual customers as per RBI guidelines. Periodical updating of KYC is undertakenas per RBI guidelines.

Your Bank has taken several initiatives to bring greater awarenessamongst its staff about KYC and AML/CFT compliances. AML-CFT Day is being observedon 2nd November every year wherein pledge is taken on that day at allbranches/processing centres and Administrative Offices. Similarly 1stAugust is observed as KYC Compliance and Fraud Prevention Day.


State Bank of India has set up an Insurance Cell for your Bank'sassets and other risks in order to reduce requirement of capital under Advance MeasurementApproach (AMA) of Basel-II framework. Additionally insurance policy to cover cyber risksfor US$ 100 million is being taken. RBI's instructions on limiting customer'sliability on Debit Card and Electronic Banking Transactions are being complied with.Likewise for covering the risk/cost of your Bank insurance cover for Debitcard/Electronic Banking Transactions is being taken.


Safekeeping of Title Deeds of all the properties of State Bank of Indiahas been centralised. Accordingly Original Title deeds have been kept with SBICAP TrusteeCo. Limited for safekeeping and digitalised form shall be available with the Bank.

Monetisation of unused non-banking assets worth `407 crore have been identified forsale from different circles out of which assets worth `17.33 crore have been monetisedduring the current financial year 2018-19.


Your Bank has taken innovative steps to propagate the use of official languagein reaching out to customers and has earned many laurels for the organisation.

Leveraging technology in rendering Banking Services in Hindi and otherIndian languages

Your Bank is committed to render banking services in Hindi and otherIndian languages. With a view to build and sustain the momentum your Bank's focus ison leveraging technology to deliver the product and services. Additionally to boostdigital inclusion content in Hindi and other Indian languages is being delivered throughATMs SMSs Contact Centre communications among others. Moreover State Bank IntelligentAssistant (SIA) has been installed to answer standard queries on products and services andresponding to frequently asked questions. SIA is a multilingual chatbot which can respondin 14 languages in speech or text. This has helped in understanding the local needs andbringing more customers to our fold.

Delegation to World Hindi Conference

11th World Hindi Conference was held from 18th to20th August 2018 at Mauritius. Your Bank sentadelegation in which the membersorganised an exhibition with the support of your Bank's subsidiary State Bank ofMauritius. The theme of the exhibition was "Vishwa Mein Hindi Pahunchai Yug Yug JioSBI". Furthermore your Bank's products services and publications depictingyour Bank's contribution in popularising Hindi around the globe were showcased in theexhibition.

Hindi Fortnight at national level and World Hindi Day at internationallevel

To popularise the use of Hindi among the staff members of your Bank inIndia and abroad a Hindi Fortnight was organised from 14th to 29thSeptember 2018 at national level and at international level. Additionally 10thJanuary 2019 was observed as World Hindi Day during which different Hindi programs andcompetitions were organised. Furthermore the circles departments and staff includingforeigners who make maximum use of Hindi in the official work during the year wereawarded.

Hindi House Magazine PRAYAS bagged GOI Rajbhasha Kirti Prize and bestHindi journal award from RBI

Rajbhasha Kirti Award 2017-18 for SBI ‘PRAYAS' Magazine:State Bank of India bagged first prize under Government of India Rajbhasha Kirti Awards 2017-18 forits Quarterly Hindi house magazine PRAYAS. Honourable Vice President of India Shri M.Venkaiah Naidu conferred the award to SBI Chairman Shri Rajnish Kumar on 14thSeptember 2018 at Plenary Hall Vigyan Bhawan New Delhi.

On this occasion Honourable Union Minister for Home Shri Rajnath Singhand Ministers of State for Home Affairs Shri Hansraj Gangaram Ahir and Shri Kiren Rijijualso graced the occasion.

Rajbhasha Kirti Award 2017-18 for SBI ‘PRAYAS' Magazine :Honourable Vice-President of India conferred the award to SBI Chairman on 14thSeptember 2018 at Vigyan Bhawan New Delhi.


Your Bank released the prestigious Hindi book ‘RajbhashaKaryanvayan: Anubhav Evam Uplabdhiyaan' under aegis of Department of FinancialServices Ministry of Finance Government of India. The book was released by Dr. Bhushan KumarSinha Joint Secretary (Financial Inclusion) Government of India on 6th July2018 at Patna.

Your Bank has also launched out Security Manual Customer InformationCompilation ATM Manual RFP LOS Documents Ethics Code and a handbook on Digital Bankingin Hindi for the use of our operating staff.

Ashirwad Rajbhasha Gaurav Award

Dr. Satya Narayan Jatia Vice-Chairman Committee of Parliament on Official Languageawarded 1st prize to your Bank for the best implementation of O.L. Policy onbehalf of renowned literary - social - cultural organisation Ashirwad. He also honouredour GM (O.L. & C.S.) with prestigious ‘Rajbhasha Gaurav Award'. Moreoverour Hindi house magazine ‘Prayas' was awarded with ‘Best Magazine'.


Town Official Language Implementation Committees chaired by your Bank atBhubaneswar and Hyderabad centres got 1st and 2nd prizesrespectively in Rajbhasha Kirti Awards from Honourable Vice President of India. Also TownOfficial Language Implementation Committee Siliguri won 3rd prize by theRegional Implementation Office (East) Kolkata.


The Marketing and Communications (M&C) Department is responsiblefor your Bank's initiatives towards branding product marketing and corporatecommunications. With the objective of optimising its efforts in promoting the products andservices by adopting contemporary marketing approach and to give impetus to the digitalinitiatives to connect with the youth the M&C Department's key responsibilitiesinclude developing and implementing integrated marketing strategies to address businesschallenges of different divisions of your Bank including Indian and overseas operations.This department comprises of domain skilled professionals and specialists drawn fromvarious relevant fields - media marketing communications digital marketing advertisingand public relations.

The focus of this year for your Bank's M&C team was to promoteits flagship product YONO. For this your Bank undertook initiatives to make the customersaware of YONO and its unique features. During the year the team also devised variousmarketing initiatives for YONO such as the YONO Shopping Festival (YSF) a first of its kindshopping festival ever organised by any Bank across the country. Your Bank conducted itsmaiden thought leadership event on _ntech called ‘Infinite'. One of the majormarketing initiatives which your Bank launched was the YONO 20Under20 concept. This wasone of the biggest external events conducted and appreciated where your Bank honoured

20 (10 Male + 10 Female) extra ordinary achievers in 10 different fields. Your Bankhas also conducted a 17-city quiz called "Numero Yono".

Chairman with the Permanent Representative of India to United NationsMr. Syed Akbaruddin at United Nations Headquarters in New York.

The Department has further strengthened its process on integratingmarketing efforts across all Business Units and has set up a suitable process for startingany marketing campaign. Apart from YONO the M&C team launched major marketingcampaigns for products such as Home Loans Wealth Management NRI Services amongstothers. The Department also initiated an integrated approach to drive consideration forthe range of retail loan products. Different media vehicles were used for all thesecampaigns.

The M&C team was instrumental in changing the brand identity of theWealth Management Services from Exclusif to SBI Wealth. The team worked on organisingGreen Marathon which was conducted in six cities last year and this year it was taken to15 cities Bhubaneswar Trivandrum Bhopal Jaipur Kolkata Lucknow Patna Guwahati toname a few in the current financial year to accentuate your Bank's commitment tosustainability.

Going forward along with the other marketing initiatives your Bankplans to further promote its flagship product YONO. The thrust of the department is to stay ahead of thecompetition and develop brand "State Bank of India'' into a more vibrantand competitive brand.


At your Bank there are three aspects to the vigilance function -Preventive Punitive and Participative. Vigilance Awareness Week was observed from 29thOctober to 3rd November 2018 with the theme "Eradicate Corruption - Builda New India". As a part of observance of Vigilance Awareness Week "IntegrityPledge" was administered to the staff and public at large. Further State Bank ofIndia as a Corporate has organised Gram Sabhas and undertaken the Integrity Pledge tocreate awareness. The message was disseminated through other means viz. AlternativeChannels IVR Social Media Walkathon and Street plays amongst others.

The concept of Whistle-blower is another effective tool used forPreventive Vigilance. To highlight any malpractices under Whistle-blower Scheme a portalwas launched by your Bank wherein a complaint can be lodged online and its progress canbe monitored. There is an existing well-defined Whistle-blower policy in your Bank which acts as a deterrent forthe employees to keep themselves away from malicious activities.

The Whistle-blower's identity is protected to ensure that theprocess continues to be an effective tool against wrongdoings without fear.

Branches where lapses of grave nature are observed are identified andsuo-motu investigations are conducted to check possible fraudulent activities and toexecute remedial measures are undertaken.

During FY2019 a total of 1505 cases (1025 new cases) were taken upfor examination out of which 790 cases have been concluded.


Efficient Management of Assets and Liabilities (ALM) is vital forsustainable and qualitative growth of Banks. ALM aims to strengthen Balance Sheet bypro-actively reviewing the market dynamics capturing the signals emanating therefromassessing the regulatory requirements to ensure value creation.

As part of best Risk Management practices updated Internal Policies on‘Deposits' ‘Whole Bank Asset and Liability Management' ‘WholeBank Stress Testing of Liquidity and Interest Rate Risks' were implemented byintroducing the latest concepts such as ‘reverse stress testing'. As part ofcontingency planning Contingency Funding Plan (CFP) is in place and reviewed regularly.

Studies are conducted at regular intervals to assess the behaviouralpattern of non-contractual assets and liabilities embedded options available tocustomers off-balance sheet exposures impact of probable loan losses and others. Theinputs derived therefrom are used for effective management of on-balance sheet andoff-balance sheet items.

The levels of High-Quality Liquid Assets (HQLA) and cash outflows areeffectively monitored in a highly dynamic environment for computing LCR on daily basis.

Your Bank has adopted an advanced approach for assessing the impact onEarnings at Risk (EaR) and Market Value of Equity (MVE) with pre-defined tolerance limits thatdetermine the risks associated with them and enables the Management to initiateappropriate preventive steps in a likely scenario of erosion in Net Interest Income.

In order to encourage branches to garner stable funds and assess theirprofitability based on cost of funds a Market Linked Internal Funds Transfer Pricingwas implemented by your Bank.

The Asset Liability Management Committee (ALCO) of your Bank monitorsand manages the Interest Rate and Liquidity Risks of the balance sheet. ALCO inter aliareviews the Interest Rate scenarios pattern of growth of liability products creditgrowth competitive advantages liquidity management adherence to the regulatoryprescriptions and pricing of liabilities and assets from time to time.

In order to address the concern of rigidities in the Balance Sheetstructure and address the issue of quick transmission of changes in RBI's policyrates effective from 1st May 2019 your Bank has taken the lead in linking itspricing of Savings Bank Deposits with balances above `1 lakh and Short Term Loans(Cash Credit accounts and Overdrafts with limits above `1 lakh) to the Repo Rate of RBI asan External Benchmark.


Your Bank was engaged during the year with promotion of ethicalawareness in the organisation as a cultural premise. Having put in place a structure forthe purpose under the Chief Ethics Officer and articulation of Bank's new Vision Mission and ValuesStatements (VMVS) Bank has come out with a Code of Ethics synchronised around thenormative commitments to its stakeholders viz. values of STEPS (Service TransparencyEthics Politeness and Sustainability). The Code provides staff-members with behaviouralguidelines and a moral compass for conducting a collective journey towards realisation ofyour Bank's vision. Sustained efforts were taken to ensure that the essence of theVMVS and Code seeps into the sinews of organisation and strengthens its moral fibre.Activities such as sharing situational Quiz for ethical sensitisation (both a generaldaily quiz to all employees of your Bank and a domain specific weekly quiz for Global MarketsForeign Offices GITC MTs amongst others covering ethical dilemmas related to their area ofwork) broadcasting Ethical Decision Making Guide posting a motivational weekly blog namely‘Coffee with Aristotle' fortnightly Ethics Tutorials amongst others areundertaken. Besides this regular Ethical Awareness Workshops are organised for differentstaff- constituencies ranging from messengers security guards Management Trainees to theDeputy General Managers including workshops on Procurement Ethics. ‘Code of Conductfor Expressing Views in Social Media' was revised in response to expanding reach ofsocial media platforms. Several measures were initiated for humanising the disciplinaryeco-system further in your Bank.

Your Bank believes that ethics is a continuous process of infusingexcellence in its operational fabric and will go on making endeavours unremittingly toshape the moral sensibilities of rank and file in the organisation.


Social Responsibility is deeply ingrained in the culture of your Bank.Consequently it has been undertaking social welfare initiatives much before the formalCSR concept was coined. Your Bank believes that it owes a solemn duty to the lessfortunate and underprivileged members of the society to make sustainable social change in their lives.State Bank of India always places the interest of the common man especially the mostmarginalised at its core. In addition to this your Bank earmarks 1% of the previousyear's net profit as the budget for CSR spend for the year. Its CSR activities arewidespread and deep-rooted and have made true difference in the lives of millions fromunderserved communities. Your Bank is committed towards the economic and social wellbeingof the downtrodden.

Focus areas of our CSR activities:

Supporting Healthcare

Supporting Education

Skill Development andLivelihood Creation

Environment Protection.


CSR spend during 2018-19

During the F.Y. 2018-19 your Bank has made donation of an amount of `5crore towards Chief Minister Distress Relief fund Kerala for Kerala _oods. Apart fromthat Bank has also donated the amount of `1.24 crore under CSR mainly towards Healthcareand Sanitation.

SBI Children's Welfare Fund: Your Bank constituted SBIChildren's welfare Fund as a Trust in 1983 which extends grants to institutionsengaged in the welfare of underprivileged and downtrodden children like orphansdestitute challenged deprived amongst others. The corpus of the fund is made by staffmembers and matching contribution is provided by your Bank. During 2018-19 State Bank ofIndia has donated `0.49 crore to 6 institutions such as Protection of the Rights ofDifferently Abled Children Pawan Public School run by Gram Vikas Sanstha Amcha GharCoochbehar NELC School Ama Adhikar and Sahrudaya Health Medical and Educational Trust.


As a part of mission to provide the entire gamut of financialservices across India the State Bank Group through its various subsidiaries provides awhole range of financial services including Life Insurance Merchant Banking TrusteeBusiness Mutual Funds Credit Card Factoring Security Trading Pension Fund ManagementCustodial Services General Insurance (Non Life Insurance) and Primary Dealership in theMoney Market.

Non- Banking Subsidiaries:

( Rs. crore)

Name of the Subsidiary Company

Ownership (SBI interest)

% of Ownership

Net Profit (Losses) for FY2019

1 SBI Capital Markets Limited (Consolidated)




2 SBI DFHI Limited




3 SBI Mutual Fund Trustee Company Private Limited




4 SBI Global Factors Limited




5 SBI Pension Funds Private Limited




6. SBI Foundation




7. SBI Infra Management Solutions Private Limited





*Group holding of SBI is 100% in SBI Pension Funds Pvt. Ltd. (SBI 60%SBI MF and SBI Capital Markets 20% each)

Non- Banking Subsidiaries: Joint Ventures

(Rs. crore)

Name of the Subsidiary Company

Ownership (SBI interest)

% of Ownership

Net Profit (Losses) for FY2019

1 SBI Funds Management Private Limited


63 .00


2 SBI Cards & Payment Services Private Limited


74 .00

788 .00

3 SBI Life Insurance Company Limited



1327 .00

4 SBI-SG Global Securities Services Private Limited


65 .00


5 SBI General Insurance Company Limited


70 .00

334 .00

6 SBI Business Process Mgt. Services Private Limited*


74 .00

78 .00

7. SBI Payment Services Private Limited


74 .00




(Rs` crore)

Name of the subsidiary company (SBI Interest)


% of ownership

Net Profit (Loss) for FY2019



100 .00




100 .00




100 .00




100 .00




100 .00



SBICAPs is India's leading investment banker offering a bouquetof investment banking and corporate advisory services to diversified clients acrossthree product groups - Project Advisory and Structured Finance Equity Capital Markets andDebt Capital Markets. These services include Project Advisory Loan SyndicationStructured Debt Placement Mergers and Acquisitions Private Equity RestructuringAdvisory Stressed Assets Resolution IPO FPO Rights Issues Debt and Hybrid Capitalraising. On a standalone basis SBICAPs posted a PBT of `242.60 crore during FY2019 asagainst `336.49 crore during the FY2018 and a PAT of `168.19 crore for FY2019 against`236.26 crore in FY2018. On a consolidated basis it has posted a profit of `236.73crore as against `323.53 crore in the previous year. SBICAPS has not declared any dividendfor FY2019 as against 225% in FY2018


SSL a wholly owned subsidiary of SBI Capital Markets Limited besidesoffering equity broking services to retail and institutional clients both in cash as wellas in Futures and Options segments is also engaged in sales and distribution of other financialproducts such as Mutual Funds Tax Free Bonds Home Loan Auto Loan Tractor Loan amongstothers.

SSL has over 100 branches and offers Demat e-broking e-IPO and e-MFservices to both retail and institutional clients. SSL currently has over 15 lakh clients.The Company has booked gross revenue of `408.36 crore during FY2019 as against `357.56crore in FY2018.


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 upthe 'Neev Fund' which is being managed by SBICAP Ventures Limited. SVL is actingas the Asset Management Company. SVL has also launched two funds namely Affordable HousingFund and SME Fund during the year.

First closure of ‘Neev Fund' was on 10th April2015 and the final closure happened on 31st March 2019 with final corpus ofthe Fund being `504.20 crore. Fund has invested in the infrastructure sectors such asrenewable energy water and sanitation agricultural supply chain in eight identified statesof India (Bihar Chhattisgarh Jharkhand Madhya Pradesh Odisha Rajasthan UttarPradesh and West Bengal).


SUL a wholly owned subsidiary of SBI Capital Markets Limited ispositioning itself as a relationship outfit for SBI Capital Markets Limited in UK and Europe. It has builtrelationships with FIIs Financial Institutions Law Firms Accounting Firms amongstothers to market the business products of SBICAP.


SSGL is a wholly owned subsidiary of SBI Capital Markets Limited. Itcommenced business in December 2012. It has built relationships with FIIsFinancial Institutions Law Firms Accounting Firms amongst others to market thebusiness products of SBICAP. It is specialised in marketing of Foreign Currency Bonds andsecuring clients for SBICAP SEC.


SBICAP Trustee Co Limited (STCL) is a wholly owned subsidiary of SBICapital Markets Limited. STCL commenced security trustee business with effect on 1stAugust 2008. STCL posted Net Profit of `14.90 crore during FY2019 as against `11.90 crore duringFY2018. Moreover it has launched an Online Will Creation service for the individuals inthe name of ‘My Will Service Online'. In addition to this ‘TrusteeEnterprise Management System' - an integrated system to address all the trusteerelated operations was implemented thereby becoming the first and only Trustee Companyin India to have full automation across all trustee related operations.


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 bookbuilding process in primary auctions and provide depth and liquidity to secondary marketsin G-Sec. Besides Government securities it also deals in money market instruments nonG-Sec debt instruments amongst others. As a PD its business activities are regulated byRBI.

State Bank of India group holds 72.17% share in the Company whichposted a Net Profit of `61.58 crore as on 31st March 2019 as against `32.07crore as on 31st March 2018. Total balance sheet size was `7206.09crore as on 31st March 2019 as against `5659.46 crore as on 31stMarch 2018.



SBI Cards and Payment Services Private Limited is a joint venturebetween State Bank of India and the Carlyle Group wherein State Bank of India holds 74%stake and CA Rover Holdings (An af_liate of Carlyle) holds 26% stake. SBICPSL is an NBFC andissues credit cards in India. State Bank of India increased its stake in the company inDecember 2017 from 60% to 74% by buying shares from exiting partner GE Capital.

During FY2019 the Company's Card base has grown by 32% YoY withtotal number of credit cards reaching to a level of 82.71 lakh as at 31st March2019. Total Spends on card witnessed a YoY growth of 35% to reach a level of `107350crore for the same period. The company is positioned at Rank #2 with 17.2% Spends Shareand 17.4% Cards base as per RBI report for February 2019 (Previous Year 16.7% in terms ofboth Spends and Cards base as per RBI report for March 2018). The company delivered Profit after Taxof `788 crore in FY2019 at YoY growth of 36% (Profit after Tax in FY2018 - `581crore).

New launches during FY2019:

New cobranded ‘Apollo SBI Card' launched offering host ofbenefits and privileges on health and wellness services.

‘SBI DoctorsCard' in association with Indian Medical Association launched exclusively forDoctors.

Etihad Guest SBI Card offering best-in-class value combined withword class travel experience to frequent international travellers

SME Card offeringunmatched value proposition to Small and Medium Enterprises (SME) segment

Allahabad Bank SBI CardCo-branded Credit Card with Allahabad Bank catering to the customers of Allahabad Bank.

Chairman SBI presented YONO 20 under 20 award under ‘SportsChampion-Male'.

Awards received during FY2019:

SBI Card received theReader's Digest Trusted Brand Award 2018 for the tenth time in the credit cardcategory.

SBI Card won the BestData Quality Award from CIBIL for the third consecutive year.

SBI Card m-Gurukul won Silver Award in Best Learning Performanceand Capability Project - Sales Training category by LEARNX Foundation Australia.

SBI Card won the‘Excellent Compliance Performer Award 2018' at the coveted Compliance 10/10awards.

SBI Card was awarded asBest Arrangements - Governance & Compliance Awards 2018 at the Compliance RegisterPlatinum held at London UK.

The SBI Card L&D teamwas awarded with Learning Innovator Award at the GP Strategies India Learning ConnectEvent held at Gurugram.

Etihad Guest SBI Card launch event.


(Formerly GE Capital Business Process and Management Services PrivateLimited)

SBIBPMSL is a joint venture between State Bank of India and the CarlyleGroup wherein State Bank of India holds 74% stake and CA Rover Holdings (An af_liate ofCarlyle) holds 26% stake. SBIBPMSL provides back end services and solutions to SBICPSL.State Bank of India increased its stake in the company in December 2017 from 40% to 74% bybuying out shares from exiting partner GE Capital.

For FY2019 the Company generated PAT of `78 crore at a YoY growth rateof 15% (Profit after Tax in FY2018 of `68 crore).

Initiatives undertaken during FY2019: Vision Plusmigration to India completed Excalibur (Collection CRM) Phase-I Go-Live from Mar'19 Chat Bot- ELA introduced- 98% Success rate


SBI Life Insurance is a joint venture between State Bank of India (SBI)and BNP Paribas Cardif S. A. The equity shares of the Company are listed on National StockExchange of India Limited (‘NSE') and BSE Limited (‘BSE').

SBI Life has a multi-channel distribution network comprising anexpansive bancassurance channel including State Bank the largest bancassurance partnerin India a large and productive individual agent network comprising 123613 agents as ofMarch 31 2019 as well as other distribution channels including direct sales and salesthrough corporate agents brokers insurance marketing firms and other intermediaries.

During the year ended March 31 2019 the Company operated in sound andstable manner with its sole objective of increasing insurance penetration andconcentrating on individual regular business through an active and prudent strategy salesteam maintaining the quality as well as quantity and established a firmer marketposition. The Company has proven its market leadership in the year ended March 31 2019with numero-uno position in Individual New Business Premium among private insurers.

Individual business has always been a part of core strategy of theCompany. The company witnessed a 15% growth in Individual New Business Premium (NBP)vis--vis the industry growth of 6%. The market share of SBI Life Retail New BusinessPremium (NBP) among all private players as on 31st March 2019 is 20.6%. TotalNew Business of the Company for the year ended FY2019 stands at `13792 crore; growth of26%.

The Company continues to maintain the leadership position amongstprivate players in number of policies issued which reflects mass coverage and strongmarket acceptance across geographies amongst life insurer. During the period total1525439 individual new policies were issued and registered growth of 7%.

During the year the Company implemented Employee Stock Option Plan(ESOPs) to encourage employee's performance and incentivise employees.

SBI Life witnessed a PAT of `1327 crore in FY2019 against `1150 crorein FY2018 growth of 15%. AUM of the Company recorded a growth of 21% at `141024 croreas on 31st March 2019 as compared to `116261 crore as on 31stMarch 2018.

Leveraging wider reach achieved through its network of 908 offices SBI Lifehas systematically brought large rural areas under insurance reach.

Awards and recognitions received during the year include:

1. For the Financial Year 2018-19 SBI Life was awarded the ‘LifeInsurer of the Year 2018 - India' by Insurance Asia News Awards for Excellence 2018.

2. SBI Life Insurance Company Limited has also been declared as theWinner of the ‘Golden Peacock Award for Risk Management' for the year 2018.

3. SBI Life won the 2nd Runner Up in the Category ofImprovement & Innovation at the 30th Qualtech Prize 2018.

4. The RIMS India Enterprise RISK Management (ERM) Award of Distinction2018 organised by the Risk & Insurance Management Society (RIMS) USA was alsoawarded to SBI Life in 2018.

5. Awarded ‘ICAI - Gold Shield' for Excellence in FinancialReporting for FY2018 under the Insurance category

6. SBI Life Insurance Company Limited received the ‘Smart InsurerAward in the Life Insurance - Large Category' at ET Insurance Summit 2018.

7. SBI Life Insurance also won the ‘Life Insurance Provider of theYear 2018' by Outlook Money in the Silver Category.

8. SBI Life Insurance was recognised as ‘The Economic Times BestBrands 2019' by The Economic Times

9. SBI Life Insurance won the ‘Intelligent Enterprise' awardin the ‘Artificial Intelligence' category by Express Computers.

10. SBI Life Insurance won the awards for ‘Best Blended LearningProgram' and ‘Chief Learning Officer of the Year' at TISS Leapvault CLO Awards 2018.

11. SBI Life Insurance won ‘Corporate Star Award for Best Trainingfor Employees/Associates' in MICE activities by MTM.


SBIFMPL the Asset Management Company of SBI Mutual Fund is amongstthe fastest growing AMCs with a growth of over 30% against the industry average of 6.20%in 2018-19. In the last three years SBIFMPL has achieved a CAGR of 39% against theindustry average of around 22%. The Fund has moved up 2 notches in 2018-19 and hasachieved 3rd rank from being at 5th rank in the beginning of theyear as per Quarterly Average Asset Under Management (QAAUM). SBIFMPL has one of largestinvestor base with over 95 lakh investors with 12 lakh direct investors and over 47000institutional investors including 1210 retirement funds. SBIFMPL is the Largest ETFmanager in the country.

SBIFMPL posted a PAT of `427.54 crore during the period ended March2019 as against `335.82 crore earned during the year ended March 2018 under IndianAccounting Standard (Ind AS). The average "Assets Under Management" (AUM) of theCompany during the quarter ended March 2019 were `283807 crore with a market share of11.59% as against the average assets under management of `217649 crore with a marketshare of 9.44% during the quarter ended March 2018. The Company has a fully owned foreignsubsidiary viz. SBI Funds Management (International) Private Limited which is based atMauritius and manages Off- shore Fund. SBIFMPL also provides Portfolio Management services(PMS) and Alternative Investment Funds (AIF).


SBIGFL is a leading provider of factoring services for domestic andinternational trade. SBI holds 86.18% share in the Company. The Company's servicesare especially suitable for MSME clients for freeing up resources locked in book debts. Byvirtue of its membership of Factors Chain International (FCI) the Company is able toameliorate credit risk from export receivables under the 2-factor model.

The Company reported a PBT of `9.47 crore during the year ended FY2019against Previous Year PBT of `2.08 crore. In current FY PAT is `5.35 crore againstPrevious Year Loss of `3.24 crore. Turnover for 12 months ended FY2019 is `4387 crore ascompared to turnover of `3555 crore in previous year (i.e. an increase of 23%). Funds inuse (FIU) as on 31st Mar 2019 is `1374 crore as compared to `1276 crore as on31st Mar 2018. Turnover in Export Factoring -2 Factor Model for 12 months endedFY2019 is equivalent to EUR 54 Mio (Previous Year EUR 59.15 mio). In INR terms the EFturnover touched `440 crore for 12 months ended FY2019 as against `452 crore in previousyear.


SBIPFPL has been appointed as the Pension Fund Manager (PFM) along withseven others to manage the pension corpus under National Pension System (NPS). SBIPFPL isone of the three PFM appointed by the Pension Fund Regulatory

& Development Authority (PFRDA) for management of Pension Fundsunder the NPS for Central Government (except Armed Forces) and State Government employeesand one of the eight PFMs appointed for management of Pension Funds under the PrivateSector. The total Assets Under Management (AUM) of the company as on 31stMarch 2019 was `121959 crore (YoY growth of 37%) against `89283 crore on 31stMarch 2018.

The Company maintained lead position amongst PFMs in terms of AUM inboth Government and Private Sectors. The overall AUM market share in Private Sector was59% while in the Government Sector it was 35%.

The Company was adjudged "Silver Award" Winner as the PensionManager of the year 2018 by Outlook Money. Awards by Outlook money have been adjudged tothe Company for 4th consecutive year in a row.


SBIGIC is a joint venture between State Bank of India and IAG Australiain which State Bank of India holds a 70% stake. At its Executive Committee meeting of theBoard your Bank has approved the sale of 86.2 Lakh shares of `10 each equaling to 4%stake in its subsidiary SBI General Insurance Company Limited (SBIGIC) for `482 crore. Theproposed transaction values SBIGIC at over `12000 crore. The transaction completion issubject to regulatory approvals.

The cornerstone of the Company's growth aspiration is focused onthe Banca channel whilst developing other channels and products that meet businessobjectives and drive profitable growth. The Company has entered in to strategic tie-ups withfour large car manufactures to drive growth in the Motor portfolio. Gross Written Premium(GWP) stood at `4717 for FY2019.

In the ninth year of operation SBIGIC had achieved a profit to thetune of `334 crore. The Company recorded 32.83% of growth in GWP YoY against an industrygrowth of 12.95% including crop whereas excluding Crop SBIGIC recorded growth of 12.4%against Industry growth of 12.6% for FY2019. SBIGIC has grown by 115.6% in Crop Insurancein FY2019 by participating in the PMFBY schemes and extending its geographies. The overallmarket share among all general insurance companies stands at 2.77% and 5.77% among privateinsurers (Excluding Standalone Health Insurers). The Company's market ranking stands13th in the industry and 8th among the private players (ExcludingStandalone Health Insurers) in FY2019. SBIGIC occupies 2nd position in"Personal Accident" both amongst private insurers and overall in the industry inFY2019. The company ranks 3rd in "Fire" among private insurersand 6th position in the industry in FY2019. Share of health business decreasedfrom 13.3% to 10.9%. However there is a growth to the tune of 8.6% for FY2019.

SBI General was awarded "Best General Insurance Company" and"Best Growth in General Insurance" at the Emerging Asia Insurance Awards 2018organised by Indian Chamber of Commerce at Bangkok. SBI General has been conferred thetitle "General Insurance Company of the Year" at the India Insurance Summit

& Awards 2019 which is the biggest strategic business summit forthe entire insurance industry in India. SBI General has won the Gold Award in the category‘Non-Life Insurance Provider of the Year 2018' at the 17th edition ofOutlook Money Awards. SBI General newsletters ‘Network' and‘Connect' have received an award for "Best Content in Email MarketingCampaign for E-Newsletters" at the India Content Leadership conference and awards2018 organised by Inkspell Media. The Company Chief Risk Officer was awarded the‘CRO of the year' in the 2nd Edition CRO Leadership Summit and Awards2019.


SBI-SG a joint venture between State Bank of India and SocieteGenerale with 65% holding by SBI. The Company was set up to offer high quality custodialand fund administration services to complete the bouquet of premier financialservices offered by the SBI Group. SBI-SG commenced commercial operations in 2010. TheCompany's Net Profit was `34.45 crore as on 31st March 2019 as against `26.03crore as on 31st March 2018. Accumulated profit is `79.90 crore.

Assets Under Custody as on March 2019 rose to `540919 crore from`465231 crore as on March 2018 while the Average Assets Under Administration were at`318197 crore in March 2019 as against `253867 crore in March 2018.

SBI-SG has been rated as one of the leading custodians in India in theGlobal Custodian magazine's Agent Banks and Emerging Markets Survey 2017. SBI-SG hasalso been rated #1 custodian in India in the Global Investor/ISF Sub - Custody survey for2017.


The SBIIMS is a wholly owned subsidiary incorporated on 17thJune 2016. The Company has since expanded its operation pan India w.e.f. 1stJuly 2018 by setting 17 Circles Infra Offices at all SBI LHO Centres. Its Head Office is located at RahejaChamber Ground Floor Free Press Journal Marg Mumbai 400021.The Company is in the processof stabilising its operation at pan India level.

The aim of the company is to give specialised services on CivilConstruction Electrical Facility Management Leasing of Premises etc. It also aims atrelieving SBI Officials from dealing with Premise and Facility related issues andcompliment it by giving specialised inputs. The company also instrumental in saving costmanpower time and energy used to be consumed by SBI.


SBI Payment Services Private Limited ("SBIPSPL") wasincorporated on February 12 2010 as a wholly owned subsidiary of State Bank of India("SBI") and was supporting SBI in conducting Merchant Acquiring Business("MAB"). In order to build state-of- the-art technology platform domainexpertise innovation centre to design new products improve customer service and to befuture ready SBI initiated the process to induct a global domain player in SBIPSPL.

During the year SBI transferred MAB to SBIPSPL and selected HitachiPayment Services Private Limited ("HPY") indirect wholly owned subsidiary ofHitachi Limited Japan as its Joint Venture partner with 26% stake.

Announcement of MAB JV between SBI and Hitachi by Hon'ble Prime Ministerof India at Tokyo.

The digital payments landscape in India is evolving at a rapid rate andSBIPSPL is playing an effective role in building momentum for transforming India throughdigitalisation of the economy. In sync with the focus of the Government of India to createa less-cash economy SBIPSPL's digital payment acceptance infrastructure is spreadacross the length and breadth of the country. During the year a multi option paymentacceptance device i.e. MOPAD was launched for facilitating payments via Cards/BharatQR/UPI on a PoS terminal.

As on 31st March 2019 SBIPSPL has deployed 5.75 lakh PoSterminals 4.18 lakh Bharat QR code and on-boarded 6.31 lakh merchants on BHIM-Aadhaar-SBIand acquired nearly 54 crore transactions during FY2019 with 24% Y-o-Y growth. The numberof merchant payment acceptance touch points crossed 16.2 lakh. SBIPSPL has reported anEBITDA of `14.19 crore as on March 31 2019

Following services are also being offered by SBIPSPL to cater to therequirements of various merchants:

DCC-Dynamic CurrencyConversion

EMI (Equal MonthlyInstallments)


NFC acceptance on PoS terminals

Acceptance ofAMEX/DINERS/DFS/ JCB/UPI Cards.

Electronic TollCollection.

SBIPSPL is providing customised solutions to premium customers to suittheir requirements by integrating with their technology platforms. Some of the notableintegrations are with Indian Railways SOUTHCO (Odisha) APDCL (Assam Power DistributionCo. Limited) Goa - GBSS project (Government of GOA) Cyber Treasury (Govt of MadhyaPradesh) IGR (Inspector General of Registrar) Pune Noida and Nagpur Metro.


SBI Foundation was established by State Bank of India in 2015 as aSection VIII company under Companies Act (2013) to undertake the CSR activities of SBI andits Subsidiaries in a planned and focused manner.

With an aim to give back to the society by working towards thesocio-economic well-being of the marginalised and vulnerable communities your Bank isactively working towards impacting people on grassroots level across PAN India with avision to provide ‘Service Beyond Banking'.

SBI Foundation is presently working on various projects to build amomentum for a transforming India by creating an inclusive development paradigm thatserves all Indians without any discrimination based on region language caste creedreligion amongst others. The total CSR spend of SBI Foundation for FY2019 was `16.46crore. The grants received from Bank's subsidiaries amounted to `16.66 crore.

The Foundation undertook CSR activities in the following focus areas:


SBI Foundation is committed towards contributing positively to UnitedNation's Sustainable Development Goals (SDGs)-Goal#3: Good Health and Well Being bybringing about positive change in the lives of underprivileged sections of society byproviding free access to quality healthcare. To contribute towards improving the healthscenario your Bank has continued the support to following CSR projects through SBIFoundation:

Life: An initiative toprevent and control Thalassemia disease by conducting free tests for around 20000 people.5.9% of the tested people were found to be positive.

Gift Hope Gift Life: Aninitiative to augment deceased Organ Donation in India with a 24/7 toll free nationalhelpline. Moreover healthcare professionals (Doctors Nurses Surgeons amongst others.)were trained and massive awareness programs were conducted during the year.

Cancer Care: Aninitiative to prevent and control Breast Cervical and Oral Cancer among women byconducting free Biopsy Mammography and Colposcopy tests.

Darpan: An initiative to mitigate damages of Sickle CellAnaemia disease by conducting free tests. Anugraha: An initiative toprovide support for home-based Hospice and Palliative Care services for the rural poorcommunity.

Umeed: An initiative toprovide crucial preventive care information for safe motherhood from gestation period todelivery and safe childhood for new born babies up to one year of age by use of mMitra- afree mobile voice call service.


Education is one of the most powerful and proven vehicles to bringtransformational change in the development of marginal segment. It plays a vital role inimproving the standard of living of an individual and is viewed as an effective tool forbringing socio-economic changes. However scarcity of resources and lack of infrastructureare the major hindrances in the education sector in India. SBI Foundation is committed tocontribute positively to United Nation's Sustainable Development Goals (SDGs) Goal#4:Quality Education. Through SBI Foundation your Bank has initiated various projects asmentioned below:

Peepul School Adoption Program: Under this project a Model school isset up in a public private partnership (PPP) aiming to raise the standard of education andimproving learning outcomes in government schools through a total school transformationapproach.

Khelwadi: Under this project 20 Khelwadis are being operated focusingon the aspects of education such as personality building creative thinking amongstothers for an all-round development of students.


State Bank of India is committed towards environment protection and toreduce its carbon footprints. Hence your Bank prioritises responsible interaction withenvironment to avoid depletion and degeneration of natural resources to maintain itslong-term quality.

Waste to gold: An initiative to motivate and develop the skills ofvulnerable youth to address waste management in the city; and develop small sustainablebusinesses for their livelihood.

SBI Corbett: An initiative to provide villages a sustainable wastemanagement system and conduct trainings of SHG Workers to spread awareness in nearbyschools and hotels.

Swachh Belur Math: SBI Foundation supported Ramkrishna Mission forconstruction of 201 toilets at new Pilgrims Abode in Belur Math that will serve 13 lakhvisitors each year. To provide sanitation facilities to visitors of the holy RamkrishnaMission that witnesses thousands of pilgrims a day SBI Foundation contributed `1.67 croreto this project.

Beat Plastic Pollution: State Bank of India's Local head Office (LHO)Mumbai organised Cleanliness Drive with the theme ‘Beat Plastic Pollution' onthe eve of "World Environment Day" at Dadar Beach near Chaitya bhoomi. More than125 staff members actively participated under the leadership of Mr P. K. Gupta MD (Retailand Digital Banking) and cleaned the plastics and other wastes on Dadar Beach andcollected 2 tractor load of garbage.

MD - Retail and Digital Banking SBI along with other staff of thebank cleaning the Dadar Beach to beat plastic pollution on World Environment Day.

Plastic free organisation: State Bank of India announced to be aplastic free organisation as part of Bank's sustainability commitment. This majorinitiative by your Bank is in sync with the Honourable Prime Minister's Swachh BharatAbhiyan and the national commitment to abolish single use plastic by the year 2022. In thenext 12 months SBI will be undertaking phase wise steps to become plastic free. PET waterbottles will be replaced with water dispensers at all its offices and meetings. YourBank will also start using standardised paper folders replacing the plastic ones.Moreover it will replace single use plastic cutleries and containers in its canteens withthose made from biodegradable substances.


India has a rich legacy of arts culture and heritage and your Bank iscommitted to preserve them. Swachh Iconic CSMT: To achieve the dual goals of preservation ofculture and heritage and contribute to "The Swachh Iconic Places" initiativeyour Bank has initiated a project named "SBI Swachh Iconic CST" an initiativefor Conservation and Restoration of South and East Faade of the Heritage Building atChhatrapati Shivaji Maharaj Terminus Mumbai A UNESCO World Heritage Site.

SBI Eklavya: Aninitiative to provide basic sports facility to the children studying in ashram schools.


SBI Youth for India Fellowship program: SBI Youth for India (YFI) is aFellowship program initiated funded and managed by the SBI Foundation SBI CapitalMarkets and SBI General Insurance. It provides a framework for India's best youngminds to join hands with rural communities empathises with their struggles and connectswith their aspirations.

Under the initiative SBI Foundation has partnered with the reputedNGOs engaged in the developmental work of rural areas to deploy the youth enrolling forthe fellowship for conceiving and working on innovative projects. YFI has an alumni baseof 254 passionate change makers 70% (approximately) of Alumni are associated with thedevelopment sector after the fellowship.

Centre of Excellence for Persons with Disabilities (PwDs) (CoE):

Majority of differently abled persons can lead a better quality of lifeif they have equal opportunities and effective access to rehabilitation measures. Therewas an increasing recognition of the abilities and emphasis on mainstreaming them in thesociety based on their capabilities. CoE conceptualised with an aim to be a centralisedsupport centre for differently able persons works on empowering PwDs through skillenhancement to make a significant and measurable improvement that enables a more productive andsatisfying life by optimising their cognitive physical social and vocationalfunctioning.

CoE has conducted 11 inclusive training programs for employees withdisabilities and their trainers having 10 public sector Banks as participants. CoE hasalso signed MoUs with Bank of Baroda Union Bank of India Vijaya Bank and State Bank ofIndia for the institutionalisation of inclusion and empowerment of employees withdisabilities.

CoE has set up a skill centre under its ‘Swabhiman' projectfor placement linked skill development of PwDs. It has also initiated project‘Shravan Shakti' to support surgery for fitment of Cochlear implants forhearing impaired children.

Gram Seva:

For the holistic development of the villages SBI Foundation hasadopted

10 Gram panchayats covering 50 of villages in six states of India.Integrated village development is aimed to promote education for all environmentprotection livelihood development digitisation in Gram Panchayat skill development andimprovement of preventive and primary health care in villages. Over 11000 families are benefiting fromthis project.

The objectives of the flagship program are:

To link and leverage thespecific government schemes/services to villages

To lay emphasis ondigitalisation and create awareness about online banking

Improve the basicinfrastructure of villages

EncouragePanchayat/Village self-governance and create environment for participatory efforts by thepeople for rural asset creation and community development.

SBI Foundation has won two national level awards during this year forits CSR initiatives.

Name of the Category
SKOCH CSR Best CSR Practices
Awards (Gold) - For Gift Hope
Gift Life project
ICC Social Empowering Rural
Impact Population- For Gram
Awards Seva project



Ownership Percentage of SBI In RRBs sponsored by SBI

35.00% 1. Andhra Pradesh Grameena Vikas Bank
35.00% 2. Arunachal Pradesh Rural Bank
35.00% 3. Chhattisgarh Rajya Gramin Bank
35.00% 4. Ellaquai Dehati Bank
35.00% 5. Langpi Dehangi Rural Bank
40.37% 6. Madhyanchal Gramin Bank
35.00% 7. Meghalaya Rural Bank
35.00% 8. Mizoram Rural Bank
35.00% 9. Nagaland Rural Bank
35.00% 10. Purvanchal Bank
35.00% 11. Saurashtra Gramin Bank
37.15% 12. Utkal Grameen Bank
35.00% 13. Uttarakhand Gramin Bank
35.00% 14. Vananchal Gramin Bank
35.00% 15. Rajasthan Marudhara Gramin Bank
35.00% 16. Telangana Grameena Bank
35.00% 17. Kaveri Grameena Bank


RRBs Sponsored by SBI

With more than 2/3rds of our country's populationliving in Rural - India it presents a huge yet under tapped opportunity for the IndianBanking Sector. Our large network of sponsored Regional Rural Banks (RRBs) is well placedto play a larger role and have a great potential to address this scenario. Regional RuralBanks have a distinct competitive advantage due to their large account base and decadesof trust-earning service tradition resulting in close proximity to the rural customers.

The State Bank hassponsored (17) Regional Rural Banks operating at regional levels in (17) different States.These RRBs have a combined branch strength of (5647) spread across (215) Districts. (ason 31st March 2019).

State Bank of India holds35% stake in each of them except Madhyanchal Gramin Bank (40.37%) and Utkal Grameen Bank(37.15%) as on 31.03.2019 due to delayed infusion of proportionate share capital by Govtof India with Government of India holding 50% and the respective State Governmentsholding the remaining 15% stakes.

The Sponsored RRBs of SBI are on CBS platform and offer bankingservices on par with any other commercial Banks operating in the country. The Banks haveadopted the best practices and are well placed to handle the ever-evolving demands ofcustomers particularly in Rural and Semi-urban space through their customer centricapproach.

Business Highlights of FY2019 (As on 31.03.2019):

The aggregate depositsand advances of the (17) RRBs (sponsored by the Bank) as on (31st March2019) stood at (`103258 cr) and (`61741 cr) respectively.

During the year underreview despite the persistently challenging macroeconomic environment the Bank improvedits business with Deposits growing by (10.80%) and Advances by (10.64%) over the previousyear. (up to 31st March 2019). As a planned strategy to diversify to theportfolio RRBs expanded their Housing Loan exposure by 26% to take the portfolio to`6599.00 cr.

During FY2019 the RRBstogether have posted a Net-Loss of (`113.81 crs) due to substantial provision of Pension.RRBs have generated gross profit of `1846.75 cr (Profit before Tax and Pension provisions) which was 88% higher than theprevious year. However on account of Provisions towards Pension liability (`1811.76 cr)the Post Tax Net Profit slid to (-) `113.81 cr as against Net Profit of `584.03 crs inFY20118. The Banks continue to focus on improving earnings from their core bankingbusiness strengthening the fee income streams and maintaining control on operating costs.

The combined GrossNon-Performing Assets ratio of the RRBs has improved to (6.92%) in current Financial yearas against 8.60% in the previous FY. Net NPA stands at (3.35%) as against (4.53%) in theprevious FY.

Business per employeeduring the FYimproved to (`7.48 Crs) (as on 31st March 2019) as against `6.78Crs in the previous FY.

Major Developments in FY2019:

The year under review witnessed several significant events some ofwhich are listed below: In January 2019 in line with a Government of India decision toamalgamate all RRBs operating in the state of Punjab ‘Malwa Gramin Bank' anRRB in which the Bank had 35% stake was amalgamated with Punjab Gramin Bank an RRBsponsored by Punjab National Bank through a scheme of arrangement as facilitated byMinistry of Finance Government of India. This event brought down the number of SponsoredRRBs in our fold from 18 to 17.

Schedule V Part B - Management Discussion and Analysis:

In terms of compliance with the SEBI (Listing Obligations &Disclosure Requirements) (Amendment) Regulations 2018 following ratios have changed bymore than 25% as per details given below:

(In %)



Variation (bps)

% Change

Net Profit Margin





Return on Net worth






Net Profit Margin:

The Net Profit has registered YoY growth of 113.17% (from Loss of `6547 Cr inFY18 to Net Profit of `862 Cr during FY19) as against YoY growth of only 5.49% inTotal Income (from `265100 Cr in FY18 to `279644 Cr in FY19).

Return on Net worth:

The Net Profit has registered YoY growth of 113.17% (from Loss of `6547 Cr inFY18 to Net Profit of `862 Cr during FY19) as against a meager YoY growth of 0.77% inNet worth of the Bank (from `177191 crore in FY18 to `178552 crore in FY19).

Similarly Govt. of Indiahas issued notification for amalgamating two of our RRBs namely Kaveri Grameena Bankand Langpi Dehangi Rural Bank with RRBs sponsored by other Banks w.e.f. 01.04.2019.

The 17 RRBs marginallyexpanded their branch network to reach 5647 branches as against 5620 branches at thebeginning of the year. The existing Branch network is expected to work more efficiently in theupcoming years thanks to the introduction of Asset Management Hubs (AMHs) - a CentralisedCredit Processing system.

The RRBs have opened 168Asset Management Hubs (AMHs) in the Financial Year which will henceforth facilitate inprocessing and sanction of quality loan proposals thus helping to improve the assetquality of the Banks.

An RRB IT Tech Cell hasbeen established at Hyderabad. This hub will act as a single point ‘solutioncenter' for undertaking and responding promptly to the IT requirements/challengesfaced at the RRBs. Several of the RRBs have well established in-house IT cells and the Hubwill act as a control center for standardising exchanging and facilitating collaborativedevelopment of IT products and solutions between the RRBs.



The Board of Directors hereby states: i. that in the preparation ofthe annual accounts the applicable accounting standards have been followed along withproper explanation relating to material departures;

ii. that they have selected such accounting policies and applied themconsistently and made judgements and estimates as are reasonable and prudent so as togive a true and fair view of the state of affairs of your Bank as on the 31stMarch 2019 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 themaintenance of adequate accounting records in accordance with the provisions of theBanking Regulation Act 1949 and State Bank of India Act 1955 for safeguarding the assetsof your Bank and preventing and detecting frauds and other irregularities;

iv. that they have prepared the annual accounts on a going concernbasis;

v. that the internal financial controls had been laid down to be followed by your Bank andthat such internal financial controls are adequate and were operating effectively; and

vi. that proper system had been devised to ensure compliance with theprovisions of all applicable laws and that such systems were adequate and operatingeffectively.


During the year Shri B. Venugopal was elected by the Shareholders asDirector on the Board u/s 19(c) of the SBI Act 1955 w.e.f. from 7th June 2018.

Shri Arijit Basu was appointed as Managing Director on the Board w.e.f.25th June 2018 and Shri B. Sriram resigned from the Board w.e.f. 29thJune 2018. Smt Anshula Kant was appointed as Managing Director on the Board w.e.f. 7thSeptember 2018.

Dr Girish Ahuja and Dr Pushpendra Rai have been re-nominated by GOI asDirectors u/s 19(d) of the SBI Act 1955 w.e.f. 6th February 2019.

The Directors place on record their appreciation for the contributionsmade by the outgoing Managing Director Shri B. Sriram to the deliberations of the Board.The Directors welcome the new Managing Directors Shri Arijit Basu and Smt Anshula Kantand Director Shri B Venugopal on the Board.

The Directors also express their gratitude for the guidance andco-operation received from the Government of India RBI SEBI IRDA and other governmentand regulatory agencies.

The Directors also thank all the valued clients shareholders Banksand financial institutions stock exchanges rating agencies and other stakeholders fortheir patronage and support and take this opportunity to express their appreciation forthe dedicated and committed team of employees of the Bank.

For and on behalf of the Central Board of Directors

Chairman Date: 10th May 2019

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