STATE BANK OF NDA

NTRODUCTON:
State Bank of India (SBI) is the largest ndian banking and financial services company (by turnover
and total assets) with its headquarters in Mumbai, ndia. t is state-owned bank.
SB provides a range of banking products through its vast network of branches in ndia and overseas,
including products aimed at non-resident ndians (NRs). The State Bank Group, with over 16,000
branches, has the largest banking branch network in ndia. SB has 14 Local Head Offices and 57
Zonal Offices that are located at important cities throughout the country. t also has around 130
branches overseas.
With an asset base of $352 billion and $285 billion in deposits, SB is a regional banking behemoth
and is one of the largest financial institutions in the world. t has a market share among ndian
commercial banks of about 20% in deposits and loans. The State Bank of ndia is the 29th most
reputed company in the world according to FORBES. Also SB is the only bank featured in the
coveted "top 10 brands of ndia" list in an annual survey conducted by Brand Finance and THE
ECONOMC TMES in 2010.
The State Bank of ndia is the largest of the Big Four banks of ndia, along with CC Bank, Punjab
National Bank and HDFC Bankits main competitors.

MSSON AND PURPOSE OF SB BANK:
Mission Statement:
Develop into a top rate, nimble footed banking institution committed to excellence in services to its
customers, enhancing stakeholder's value though care and competence and fulfilling obligations to
the community at large.
Vision Statement:
O Attain high standards of efficiency and professionalism and core institutional values
comparable to the best in the field.
O Possess world-class standards of efficiency and professionalism rooted in the core
institutional values of the State Bank Group.
O To be a committed, caring and responsible corporate citizen
O To provide a satisfying work environment with opportunities for learning, self-development
and self-actualization.
O Excellence in customer service
O ntegrity and confidentiality

ADMNSTRATON:
Branches of SB
O State Bank of ndia has 131 foreign offices in 32 countries across the globe.
O SB has about 25,000 ATMs (25,000th ATM was inaugurated by the then Chairman of State
Bank Shri O.P.Bhatt on 31 March 2011, the day of his retirement); and SB group(including
associate banks) has about 45,000 ATMs.
O SB has 26,500 branches, including branches that belong to its associate banks.
Directors of SB

Sr.
No.
Name Designation Under Section of
SBI Act 1955
1 Shri Pratip Chaudhuri Chairman 19 (a)
Shri Hemant G. Contractor Managing Director 19 (b)
Shri Diwakar Gupta Managing Director 19 (b)
Shri A. Krishna Kumar Managing Director 19 (b)
5 Shri Dileep C. Choksi Director 19 (c)
Shri S. Venkatachalam Director 19 (c)
Shri D. Sundaram Director 19 (c)
Shri Parthasarathy Iyengar Director 19 (c)
9 Shri G. D. Nadaf Officer Employee Director 19 (cb)
10 Dr. Rajiv Kumar Director 19 (d)
11 Shri Rashpal Malhotra Director 19 (d)
1 Shri Shashi Kant Sharma Director 19 (e)



HSTORY:
The roots of the State Bank of ndia rest in the first decade of 19th century, when the Bank of
Calcutta, later renamed the Bank of Bengal, was established on 2 June 1806. The Bank of Bengal
was one of three Presidency banks, the other two being the Bank of Bombay (incorporated on 15
April 1840) and the Bank of Madras (incorporated on 1 July 1843). All three Presidency banks were
incorporated as joint stock companies and were the result of the royal charters. These three banks
received the exclusive right to issue paper currency in 1861 with the Paper Currency Act, a right they
retained until the formation of the Reserve Bank of ndia. The Presidency banks amalgamated on 27
January 1921, and the reorganised banking entity took its name as mperial Bank of ndia. The
mperial Bank of ndia remained a joint stock company
Pursuant to the provisions of the State Bank of ndia Act (1955), the Reserve Bank of ndia, which
is ndia's central bank, acquired a controlling interest in the mperial Bank of ndia. On 30 April 1955,
the mperial Bank of ndia became the State Bank of ndia. The government of ndia recently acquired
the Reserve Bank of ndia's stake in SB so as to remove any conflict of interest because the RB is
the country's banking regulatory authority.
n 1959, the government passed the State Bank of ndia (Subsidiary Banks) Act, enabling the State
Bank of ndia to take over eight former state-associated banks as its subsidiaries. On 13 September
2008, the State Bank of Saurashtra, one of its associate banks, merged with the State Bank of ndia.
SB has acquired local banks in rescues. For instance, in 1985, it acquired the Bank of Cochin
in Kerala, which had 120 branches. SB was the acquirer as its affiliate, the State Bank of Travancore,
already had an extensive network in Kerala.





ASSOCATE BANKS:
SB has FVE associate banks:
O State Bank of Bikaner & Jaipur
O State Bank of Hyderabad
O State Bank of Mysore
O State Bank of Patiala
O State Bank of Travancore


GROWTH STORY:
The State Bank of ndia, the country's oldest Bank and a premier in terms of balance sheet size,
number of branches, market capitalization and profits is today going through a momentous phase of
Change and Transformation the two hundred year old Public sector behemoth is today stirring out of
its Public Sector legacy and moving with an ability to give the Private and Foreign Banks a run for
their money.
The bank is entering into many new businesses with strategic tie ups Pension Funds, General
nsurance, Custodial Services, Private Equity, Mobile Banking, Point of Sale Merchant Acquisition,
Advisory Services, structured products etc each one of these initiatives having a huge potential for
growth. The Bank is forging ahead with cutting edge technology and innovative new banking models,
to expand its Rural Banking base, looking at the vast untapped potential in the hinterland and
proposes to cover 100,000 villages in the next two years.

t is also focusing at the top end of the market, on whole sale banking capabilities to provide ndia's
growing mid / large Corporate with a complete array of products and services. t is consolidating its
global treasury operations and entering into structured products and derivative instruments. Today,
the Bank is the largest provider of infrastructure debt and the largest arranger of external commercial
borrowings in the country. t is the only ndian bank to feature in the Fortune 500 list.

The Bank is changing outdated front and back end processes to modern customer friendly processes
to help improve the total customer experience. With about 8500 of its own 10000 branches and
another 5100 branches of its Associate Banks already networked, today it offers the largest banking
network to the ndian customer. The Bank is also in the process of providing complete payment
solution to its clientele with its over 21000 ATMs, and other electronic channels such as nternet
banking, debit cards, mobile banking, etc.

With four national level Apex Training Colleges and 54 learning Centres spread all over the country
the Bank is continuously engaged in skill enhancement of its employees. Some of the training
programmes are attended by bankers from banks in other countries.

The bank is also looking at opportunities to grow in size in ndia as well as nternationally. t presently
has 82 foreign offices in 32 countries across the globe. t has also 7 Subsidiaries in ndia SB
Capital Markets, SBCAP Securities, SB DFH, SB Factors, SB Life and SB Cards - forming a
formidable group in the ndian Banking scenario. t is in the process of raising capital for its growth
and also consolidating its various holdings.

Throughout all this change, the Bank is also attempting to change old mindsets, attitudes and take all
employees together on this exciting road to Transformation. n a recently concluded mass internal
communication programme termed 'Parivartan' the Bank rolled out over 3300 two day workshops
across the country and covered over 130,000 employees in a period of 100 days using about 400
Trainers, to drive home the message of Change and inclusiveness. The workshops fired the
imagination of the employees with some other banks in ndia as well as other Public Sector
Organizations seeking to emulate the programme.

The CNN BN, Network 18 recognized this momentous transformation journey, the State Bank of
ndia is undertaking, and has awarded the prestigious ndian of the Year Business, to its Chairman,
Mr. O. P. Bhatt in January 2008.



PRODUCTS:
1. PERSONAL BANKNG:
SB TERM DEPOSTS
SB RECURRNG DEPOSTS
SB HOUSNG LOAN
SB CAR LOAN
SB EDUCATONAL LOAN
SB PERSONAL LOAN
SB LOAN FOR PENSONERS
LOAN AGANST MORTGAGE OF PROPERTY
LOAN AGANST SHARES & DEBENTURES
RENT PLUS SCHEME
MED PLUS SCHEME

2. NR SERVCES

3. AGRCULTURAL SERVCES

AGRCULTURAL BANKNG

MCRO CREDT
REGONAL RURAL BANKS
4. NTERNATONAL BANK SERVCES
5. CORPORATE BANKNG
WORKNG CAPTAL FNANCE
PROJECT FNANCE
DEFERRED PAYMENT GUARANTEE
CORPORATE TERM LOANS
STRUCTURED FNANCE
DEALER FNANCNG
CHANNEL FNANCNG
EQUPMENT LEASNG
LOANS SYNDCATON
FNANCNG NDAN FRMS OVERSEAS SUBSDARY OR JVS
CONSTRUCTON EQUPMENT LOAN
6. SME:
SME CASH CREDT LOAN
SME SMART SCORE LOAN
SME TRADERS EASY LOAN

7. SERVCES
DOMESTC TREASURY
SB VSHWA YATRA FOREGN TRAVEL CARD
BROKNG SERVCES
REVSED SERVCE CHARGES
ATM SERVCES
NTERNET BANKNG
E PAY
E RAL
RBEFT
SAFE DEPOST LOCKER
MCR CODES



SWOT ANALYSS OF SB BANK:
STRENGTHS:
O BRAND NAME: SB Bank has earned a reputation in the market over the period of time
(Being the oldest bank in ndia tracing history back to 1806)
O MARKET LEADER: SB is ranked at 380 in 2008 Fortune Global 500 list, and ranked 219 in
2008 Forbes Global 2000. With an asset base of $126 billion and its reach, it is a regional
banking behemoth.
O WDE DSTRBUTON NETWORK: Excellent penetration in the country with more than 10000
core branches and more than 5100 branches of associate banks (subsidiaries).
O DVERSFED PORTFOLO: SB Bank has all the products under its belt, which help it to
extend the relationship with existing customer.SB Bank has umbrella of products to offer their
customers, if once customer has relationship with the bank. Some Products, which SB Bank
is offering are: Retail Banking Business Banking Merchant Establishment Services
(EDCMachine) Personal loans & Car loans nsurance Housing Loans
O GOVERNMENT OWNED: Government owns 60% stake in SB. This gives SB an edge over
private banks in terms of customer security.
O LOW TRANSTON COST: SB offers very low transition costs which attracts small
customers.
WEAKNESSES:
O The existing hierarchical management structure of the bank, although strength in some
respects, is a barrier to change.
O Though SB cards are the 2nd largest player in the credit card industry, it has the highest
non-performing assets (NPAs) in the industry, which stand out to be at 16.28 % (Dec 2007).
O Modernisation: SB lags with respect to private players in terms of modernisation of its
processes, infrastructure, centralisation, etc.

OPPORTUNTES:
O Merger of associate banks with SB: Merger of all the associate banks (like SBH, SBM, etc)
into SB will create a mega bank which streamlines operations and unlocks value.
O Planning to add 2000 branches and 3000 ATMs in 2008-2009. This will further increase its
reach.
O ncreasing trade and business relations and a large number of expatriate populations offers
a great opportunity to expand on foreign soil.
THREATS:
O Advent of MNC banks: Large numbers of MNC banks are mushrooming in the ndian market
due to the friendly policies adopted by the government. This can increase the level of
competition and prove a potential threat for the market share of SB bank.
O Consumer expectations have increased many folds in last few years and the bank has not
been responsive enough to meet them on time.
O Private banks have started venturing into the rural and semi-urban sector, which used to be
the bastion of the State Bank and otherPSU banks
O Employee Strike: There was an employee strike in the year 2006 which disrupted SB's
activities. This can be repeated in the future.
AWARDS AND RECOGNTONS:
O Best Online Banking Award, Best Customer nitiative Award & Best Risk Management Award
(Runner Up) by BA Banking Technology Awards 2010
O The Bank of the year 2009, ndia (won the second year in a row) by The Banker Magazine
O Best Bank Large and Most Socially Responsible Bank by the Business Bank Awards 2009
O Best Bank 2009 by Business ndia
O The Most Trusted Brand 2009 by The Economic Times
O Most Preferred Bank & Most preferred Home loan provider by CNBC
O Visionaries of Financial nclusion By FNO
O Technology Bank of the Year by BA Banking Technology Awards
O SKOCH Award 2010 for Virtual corporation Category for its e-payment









ANNUAL REPORT FNANCAL YEAR 2010-11:


O 5erating Profit recorded a YOY growth of 38.29% in FY11 over FY10 - against a growth of
2.26% recorded in FY10 over FY09.
O Net Profit is lower by 9.84% in FY11 over FY10 against a growth of 0.49% in FY10 over FY
09 mainly due to higher pension, gratuity and loan loss provisions and standard assets
provision on special home loan schemes.

O FY11 Vs FY10 :

4 NII increased by 37.41% in FY11 over FY10, against an increase of 13.41% in FY10
over FYY09.
4 Driven by Ioan growth of 20.32%, interest income on advances has increased by
188.45% YOY against a growth of 9.11% in FY Y10.
4 Growth in Interest ex5enses was contained at 3.27% mainly due to CASA de5osits
growth of 22.14%.
4 Non Interest Income is up by 5.72% despite profit on sale of investments declining
by Rs.1196 crores. Excluding profit on sale of investments, non- interest income is up
by 15.97%.
4 Fee income is up by 20% YOY.
4 Growth in 5erating Ex5enses is lower at 13.27% in FY111 against a growth of
29.84% in the previous year.
4 Growth in staff ex5enses contained at 13.53% .
4 Gratuity provisions of Rs.1565 crores made in FY1 11 (Rs.46 crores in FY10)
4 Higher current year pension provisions of Rs.247 73 crores in FY11 (Rs.199 98
crores in FY10).
4 Rs.79277 crores of pension liability on account of wage revision has been taken
through the Capital Account for the period up to Mar 10.
4 Growth in overheads was significantly lower at 12..84% in FY11 as against a growth
of 28.17% in FY10.
4 Bank has provided additional Rs.500 crores as standard assets provision for special
home loan schemes.
4 Loan loss provision of Rs.8792 crores made during FY11 includes Rs.6462 crores
RAC provisions and Rs.2330 crores additional provision (countercyclical
provisioning buffer).

O Q4FY11 Vs Q4FYY10
4 Interest Income on advances up by 25.37% against a growth of 7.31% in Q4FY10
over QQ4FY09.
4 Interest 5aid on de5osits is up by 15.98% due to increase in interest rates on term
deposits.
4 NII increased by 19.89%.
4 Growth in non-interest income at 6.81% was impacted by decline in profit on sale
of investments by 21.35%.
4 5erating ex5enses increased by 12.55% due to increase in staff expenses by
17.46%. Contribution for employees increased by 17.699%, while payment to
employees increased by 17.40%. Overheads of the Bank remained under control with
a growth of 5.35% in Q4FY11 against a growth of 26.42% in Q4FY10.
4 %otaI 5rovisions went up by 82.10% during the quarter.

O TOTAL BUSNESSS GROWTH OF Rs. 2,60,139
CRORES (YOY):
Business Growth of Rs.2,60,139 crores at the end of Marr 11 (Deposits Rs. 1,29,817 crores
& advances Rs.1,30,322 crores).

O DEPOSTS:
Deposits of the Bank went up from Rs.8,04,116 crores in Mar 10 to Rs. 9,33,933 crores in
Mar 11 recording a YOY growth of 116.14%, driven by CASA growth of 22.14% while term
deposits are up by 12.79%.Savings Bank deposits grew by 26.20% YOY.CASA ratio has
improved from 46.67% as on Mar 2010 to 48.66% as on Mar 2011 an increase of 199
bps.Market share in total deposits as on Mar 11 at 16.40% (16.29% as on Mar 10), increased
by 11 bps YOY, while market share in low cost demand deposits at 18.23% (17.33% as on
Mar 10) is up by 90 bps.

O ADVANCES:

4 Gross Advances up by Rs.1, 30,322 crores, a YOY growth of 20.32% from Rs.6,
41,480 crores in Mar 10 to Rs.7,71,802 crores in Mar 11.
4 Credit Deposit Ratio (Domestic) is up at 76.32% as at the end of Mar 11 from 73.56%
at the end of Mar 10, an increase of 276 bps, while sequentially it has declined from
77.22% at the end of Dec 10 due to higher growth in deposits in Q4FY11.
4 Large Corporate advances have grown from Rs.88,137 crores in Mar 10
to Rs.1,08,741 crores in Mar 11 registering a growth of 23.38%%.
4 Mid-Corporate Advances up from Rs.1, 31,939 crores to Rs.1,57,565 thereby
registering a growth of 19.42% YOY.
4 Retail advances have increased from Rs.1, 34,849 crores in March 10 to Rs.1,
64,576 crores in March 11, a growth of 22.04%. Three main contributors are: Home
loans grew by 21.88% YOY from a level of RRs.71, 193 crores in Mar 10
tootRs.86,769 crores in Mar 11. Auto Loans up by 48.01% YOY and Education
Loans grew by 23.27% from Mar 10 to Mar 11.SME Advances of the Bank are up by
22.80% from a level of Rs.97,459 crores in Mar 10 to Rs.1,19,676 crores as at the
end of Mar 11.Agri advances up from Rs.78, 250 crores to 94,8266 crores thereby
registering a growth of 21.18% YOY.nternational advances went up by 12.66% from
Rs.97,0722 crores in Mar 10 to Rs.1,09,358 crores in Mar 11.The Bank has reached
a provision coverage ratio (PCR) of 64.955% at the end of March 2011.

O KEY FNANCAL RATOS:

4 Net nterest Margin improved to 3.32% at the end of Mar 11 from 2.66% as on Mar
10.
4 Return on Assets (ROA) is lower at 0.71% in FY11 compared to 0.88% in FY10.
4 As on March 11, Cost to income ratio at 47.60% is lower by 499 bps from 52.59% as
on Mar 10.
4 Average Cost of Deposits has come down by 54 bps to 5.226% as on Mar 11 from
5.80% as on Mar 10, while sequentially; it is up from 5.200% in Dec 10.
4 Yield on advances (YOA) at 9.56% in FY11 is lower by 10 bps as compared to 9.66%
in FY10 and by 2 bps from 9.58% in Dec 10.
4 As per Basel CRAR of the Bank is at 11.98% (Tier : 7.77 %) as at the end of Mar
2011, compared to 13.39% last year. The decline is mainly due to the provision made
towards pension fund on account of wage revision -Rs.7,927 crores up to FY10
taken through the capital account.

O Performance of Associates and Subsidiaries (FY11):

4 Net Profit of Associate Banks increased by Rs.640 crore (211.62%) to reach a level
of Rs. 3598 crore as on Mar 11 as against Rs. 2959 crore in Mar 2010, while
operating profit is up by 29.56%.
4 SB Capital Markets Ltd has posted PAT of Rs.385 crores as on 31.03.2011
as against Rs.150 crores as on 31.03.2010, recording a YoY growth of 156%.
4 SB Cards & Payment Services Pvt. Ltd recorded a Net Profit of Rs.7.10 crore for
FY11 after incurring continuous losses for the preceding three years.
4 SB Life recorded a Profit of Rs.366 crores with YOY growth of 33%.
4 SB GROUP PROFT SB Group Operating Profit for FY11 at Rs.33,240 crores is up
by 34.04% from Rs. 24,799 crores in FY10, while Net Profit is lower by 8.94% at
Rs.10,6685 crores in FY11 against Rs.11,734 crores in FY10.
4 Slippages from Restructured Assets Out of the total standard restructured assets of
Rs.18,395 crores restructured under RB scheme, Rs. 249 crores have slipped into
NPA category during the quarter, taking the total slippages to Rs.33,134 crores and
the slippage ratio to 17.04 % up to Mar 11.


SOCAL WELFARE AND SOCAL RESPONSBLTES:
The Bank is actively involved since 1973 in non-profit activity called Community Services
Banking. All its branches and administrative offices throughout the country sponsor and
participate in large number of welfare activities and social causes. The business is more than
banking because it touches the lives of people anywhere in many ways.
Apart from the normal banking operations, the Bank, as a responsible and responsive corporate
citizen, seeks to reinvest part of its profit in various community welfare projects to improve the
quality of life of the poor, neglected, weaker and downtrodden sections of society.

n the financial year 2007-08, the Bank made donations aggregating Rs. 8.11 crore to various
Relief Funds and also to NGOs / Trusts / Societies for their projects with social orientation. n
recognition of its contribution to Rural Community Development, the Bank was awarded the
prestigious Reader's Digest Pegasus Corporate Social Responsibilities Award 2007. nfact, it was
the only Bank to have received this recognition.

Under a new scheme named 'Adoption of the Girl Child' over 8,300 poor girl children have been
adopted by various branches throughout the country to meet their personal and educational
expenses. This is not merely a financial assistance scheme but offers emotional and
psychological support to the 'adopted girls' due to the active involvement and care of the SB
Ladies Clubs.

From the Research and Development Fund, the Bank has so far extended Rs.6.61 crore as
research grants to 71 chairs / research projects at various Universities and Academic institutions.
For the current year SB has extended 100000 Sterling Pounds to London School of Economics
for establishing an ndia Observatory and .G.Patel Chair at their Asia Research Centre in
participation with RB.