sbi final rep[rt

5/27/2018 Sbi Final rep[rt

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PROJECT REPORT ON

STATE BANK OF INDIA

DEBASISH NAYAK

KIRTEE ANOORAG

BEAUTY BAL

SUMIT ROY

SUBHAKANTA DASH

SK MUSHALLUDIN

PRESENTED BY:


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DECLARATIONWe hereby declare that the project permitted STATE

BANK OF INDIA submitted for MBA (Master in

Business Administration) Degree. This project is about the

business awareness of SBI, a leading Banking industry, and

the information is collected from the secondary sources,

under the guidance of Prof. Saud Hussain.

Date:

Place:


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CERTIFICATEThis to certify that the project entitled STATE BANK OF INDIA

a banking industry is a project work carried out by Debasishnayak,

Beauty bal, kirteeanoorag, Sumit ray,SK mussaladin of MBA (1st

year), in BIITM, Patia, Bhubaneswar, during the year 2013-15. This

Project report has been prepared with a specific purpose in mind. It

outlines the history and current scenario of the SBI globally and

locally.

Date:

Place:


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ACKNOWLEDGEMENT

We have given our best efforts for the accomplishment of this

project work. It would not have been possible without the support

and assist of many individuals as well as organization. We wouldlike to extend our sincere thanks to all of them.

We are highly grateful to Prof. Saud Hussain, for his whole hearted

support and guidance as well as constant supervision for providing

necessary information regarding this project and for his assistance

in completing the project.

We would also like to express our gratitude towards our Groupmembers and faculty who helped us for accomplishment of this

project.

Date:

Place:


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CONTENTS:

INTRODUCTION

HISTORY & BACKGROUND

ORGANISATION STRUCTURE

MARKETS ANALYSIS

CORPORATE STRATEGIES

PRODUCTS SEGMENT

FINANCIAL

SHAREHOLDER INFORMATION

CORPORATE GOVERNANCE

AWARDS &ACCOLADES

SWOT ANALYSIS

EXTERNAL ENVIORNMENT


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INTRODUCTION:

State Bank of India (SBI), with a 200 year history, is the largest

commercial bank in India in terms of assets, deposits, profits, branches,

customers and employees. The Government of India is the single largestshareholder of this Fortune 500 entity with 61.58% ownership. SBI isranked 60th in the list of Top 1000 Banks in the world by "The Banker"in July 2012.

The origins of State Bank of India date back to 1806 when the Bank ofCalcutta (later called the Bank of Bengal) was established. In 1921, theBank of Bengal and two other banks (Bank of Madras and Bank of

Bombay) were amalgamated to form the Imperial Bank of India. In1955, the Reserve Bank of India acquired the controlling interests of theImperial Bank of India and SBI was created by an act of Parliament tosucceed the Imperial Bank of India.

The SBI group consists of SBI and five associate banks. The group hasan extensive network, with over 20000 plus branches in India andanother 186 offices in 34 countries across the world. As of 31st March

2013, the group had assets worth USD 392 billion, deposits of USD 299billion and capital & reserves in excess of USD 23.03 billion. The groupcommands over 23% share of the domestic Indian banking market.

SBIs non- banking subsidiaries/joint ventures are market leaders in theirrespective areas and provide wide ranging services, which include lifeinsurance, merchant banking, mutual funds, credit cards, factoring

services, security trading and primary dealership, making the SBI Groupa truly large financial supermarket and Indias financial icon. SBI hasarrangements with over 1500 various international / local banks toexchange financial messages through SWIFT in all business centres ofthe world .


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OVERVIEW:


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HISTOTY AND BACKGROUND

The origin of the State Bank of India goes back to the first decade ofthe nineteenth century with the establishment of the Bank of Calcutta in

Calcutta on 2 June 1806. Three years l ater the bank received its charterand was re-designed as the Bank of Bengal (2 January 1809). A uniqueinstitution, it was the first joint-stock bank of British India sponsored bythe Government of Bengal. The Bank of Bombay (15 April 1840) andthe Bank of Madras (1 July 1843) followed the Bank of Bengal. Thesethree banks remained at the apex of modern banking in India till theiramalgamation as the Imperial Bank of India on 27 January 1921.

Primarily Anglo-Indian creations, the three presidency banks came intoexistence either as a result of the compulsions of imperial finance or bythe felt needs of local European commerce and were not imposed fromoutside in an arbitrary manner to modernize India's economy. Theirevolution was, however, shaped by ideas culled from similardevelopments in Europe and England, and was influenced by changesoccurring in the structure of both the local trading environment andthose in the relations of the Indian economy to the economy of Europeand the global economic framework.

Bank of Bengal H.O.


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Establishment:The establishment of the Bank of Bengal marked the advent of limitedliability, joint-stock banking in India. So was the associated innovationin banking, viz. the decision to allow the Bank of Bengal to issue notes,

which would be accepted for payment of public revenues within arestricted geographical area. This right of note issue was very valuablenot only for the Bank of Bengal but also its two siblings, the Banks ofBombay and Madras. It meant an accretion to the capital of the banks, acapital on which the proprietors did not have to pay any interest. Theconcept of deposit banking was also an innovation because the practiceof accepting money for safekeeping (and in some cases, even investmenton behalf of the clients) by the indigenous bankers had not spread as a

general habit in most parts of India. But, for a long time, and especiallyupto the time that the three presidency banks had a right of note issue,bank notes and government balances made up the bulk of the investibleresources of the banks.

The three banks were governed by royal charters, which were revisedfrom time to time. Each charter provided for a share capital, four-fifth ofwhich were privately subscribed and the rest owned by the provincialgovernment. The members of the board of directors, which managed theaffairs of each bank, were mostly proprietary directors representing thelarge European managing agency houses in India. The rest weregovernment nominees, invariably civil servants, one of whom waselected as the president of the board.

Group Photogaph of Central Board (1921)


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Business:

The business of the banks was initially confined to discounting of billsof exchange or other negotiable private securities, keeping cash accounts

and receiving deposits and issuing and circulating cash notes. Loanswere restricted to Rs.one lakh and the period of accommodationconfined to three months only. The security for such loans was publicsecurities, commonly called Company's Paper, bullion, treasure, plate,jewels, or goods 'not of a perishable nature' and no interest could becharged beyond a rate of twelve per cent. Loans against goods likeopium, indigo, salt woollens, cotton, cotton piece goods, mule twist andsilk goods were also granted but such finance by way of cash creditsgained momentum only from the third decade of the nineteenth century.All commodities, including tea, sugar and jute, which began to befinanced later, were either pledged or hypothecated to the bank. Demandpromissory notes were signed by the borrower in favour of theguarantor, which was in turn endorsed to the bank. Lending againstshares of the banks or on the mortgage of houses, land or other realproperty was, however, forbidden.

Indians were the principal borrowers against deposit of Company's

paper, while the business of discounts on private as well as salary billswas almost the exclusive monopoly of individuals Europeans and theirpartnership firms. But the main function of the three banks, as far as thegovernment was concerned, was to help the latter raise loans from timeto time and also provide a degree of stability to the prices of governmentsecurities.

Old Bank of Bengal


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Major change in the conditions:

A major change in the conditions of operation of the Banks of Bengal,Bombay and Madras occurred after 1860. With the passing of the PaperCurrency Act of 1861, the right of note issue of the presidency banks

was abolished and the Government of India assumed from 1 March 1862the sole power of issuing paper currency within British India. The taskof management and circulation of the new currency notes was conferredon the presidency banks and the Government undertook to transfer theTreasury balances to the banks at places where the banks would openbranches. None of the three banks had till then any branches (except thesole attempt and that too a short-lived one by the Bank of Bengal atMirzapore in 1839) although the charters had given them such authority.

But as soon as the three presidency bands were assured of the free use ofgovernment Treasury balances at places where they would openbranches, they embarked on branch expansion at a rapid pace. By 1876,the branches, agencies and sub agencies of the three presidency bankscovered most of the major parts and many of the inland trade centres inIndia. While the Bank of Bengal had eighteen branches including itshead office, seasonal branches and sub agencies, the Banks of Bombayand Madras had fifteen each.

Bank of Madras Note Dated 1861 for Rs.10


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Presidency Banks Act:The presidency Banks Act, which came into operation on 1 May 1876,brought the three presidency banks under a common statute with similarrestrictions on business. The proprietary connection of the Governmentwas, however, terminated, though the banks continued to hold charge of

the public debt offices in the three presidency towns, and the custody ofa part of the government balances. The Act also stipulated the creationof Reserve Treasuries at Calcutta, Bombay and Madras into which sumsabove the specified minimum balances promised to the presidency banksat only their head offices were to be lodged. The Government could lendto the presidency banks from such Reserve Treasuries but the lattercould look upon them more as a favour than as a right.

Bank of Madras

The decision of the Government to keep the surplus balances in ReserveTreasuries outside the normal control of the presidency banks and theconnected decision not to guarantee minimum government balances atnew places where branches were to be opened effectively checked thegrowth of new branches after 1876. The pace of expansion witnessed inthe previous decade fell sharply although, in the case of the Bank ofMadras, it continued on a modest scale as the profits of that bank weremainly derived from trade dispersed among a number of port towns and


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inland centres of the presidency.

India witnessed rapid commercialisation in the last quarter of thenineteenth century as its railway network expanded to cover all the

major regions of the country. New irrigation networks in Madras, Punjaband Sind accelerated the process of conversion of subsistence crops intocash crops, a portion of which found its way into the foreign markets.Tea and coffee plantations transformed large areas of the eastern Terais,the hills of Assam and the Nilgiris into regions of estate agriculture parexcellence. All these resulted in the expansion of India's internationaltrade more than six-fold. The three presidency banks were bothbeneficiaries and promoters of this commercialisation process as theybecame involved in the financing of practically every trading,manufacturing and mining activity in the sub-continent. While the Banksof Bengal and Bombay were engaged in the financing of large modernmanufacturing industries, the Bank of Madras went into the financing oflarge modern manufacturing industries, the Bank of Madras went intothe financing of small-scale industries in a way which had no parallelelsewhere. But the three banks were rigorously excluded from anybusiness involving foreign exchange. Not only was such businessconsidered risky for these banks, which held government deposits, it was

also feared that these banks enjoying government patronage would offerunfair competition to the exchange banks which had by then arrived inIndia. This exclusion continued till the creation of the Reserve Bank ofIndia in 1935.

Bank of Bombay


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Presidency Banks of Bengal

The presidency Banks of Bengal, Bombay and Madras with their 70branches were merged in 1921 to form the Imperial Bank of India. Thetriad had been transformed into a monolith and a giant among Indian

commercial banks had emerged. The new bank took on the triple role ofa commercial bank, a banker's bank and a banker to the government.

But this creation was preceded by years of deliberations on the need fora 'State Bank of India'. What eventually emerged was a 'half-way house'combining the functions of a commercial bank and a quasi-central bank.

The establishment of the Reserve Bank of India as the central bank of

the country in 1935 ended the quasi-central banking role of the ImperialBank. The latter ceased to be bankers to the Government of India andinstead became agent of the Reserve Bank for the transaction ofgovernment business at centres at which the central bank was notestablished. But it continued to maintain currency chests and small coindepots and operate the remittance facilities scheme for other banks andthe public on terms stipulated by the Reserve Bank. It also acted as abankers' bank by holding their surplus cash and granting them advancesagainst authorised securities.

The management of the bank clearing houses also continued with it atmany places where the Reserve Bank did not have offices. The bank wasalso the biggest tenderer at the Treasury bill auctions conducted by theReserve Bank on behalf of the Government.

The establishment of the Reserve Bank simultaneously saw importantamendments being made to the constitution of the Imperial Bankconverting it into a purely commercial bank. The earlier restrictions onits business were removed and the bank was permitted to undertakeforeign exchange business and executor and trustee business for the firsttime.


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Imperial Bank:

The Imperial Bank during the three and a half decades of its existencerecorded an impressive growth in terms of offices, reserves, deposits,investments and advances, the increases in some cases amounting to

more than six-fold. The financial status and security inherited from itsforerunners no doubt provided a firm and durable platform. But the loftytraditions of banking which the Imperial Bank consistently maintainedand the high standard of integrity it observed in its operations inspiredconfidence in its depositors that no other bank in India could perhapsthen equal. All these enabled the Imperial Bank to acquire a pre-eminentposition in the Indian banking industry and also secure a vital place inthe country's economic life.

Stamp of Imperial Bank of India

When India attained freedom, the Imperial Bank had a capital base(including reserves) of Rs.11.85 crores, deposits and advances ofRs.275.14 crores and Rs.72.94 crores respectively and a network of 172branches and more than 200 sub offices extending all over the country.


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First Five Year Plan:

In 1951, when the First Five Year Plan was launched, the development

of rural India was given the highest priority. The commercial banks ofthe country including the Imperial Bank of India had till then confinedtheir operations to the urban sector and were not equipped to respond tothe emergent needs of economic regeneration of the rural areas.

In order, therefore, to serve the economy in general and the rural sectorin particular, the All India Rural Credit Survey Committee

recommended the creation of a state-partnered and state-sponsored bankby taking over the Imperial Bank of India, and integrating with it, theformer state-owned or state-associate banks. An act was accordinglypassed in Parliament in May 1955 and the State Bank of India wasconstituted on 1 July 1955. More than a quarter of the resources of theIndian banking system thus passed under the direct control of the State.Later, the State Bank of India (Subsidiary Banks) Act was passed in1959, enabling the State Bank of India to take over eight former State-

associated banks as its subsidiaries (later named Associates).

The State Bank of India was thus born with a new sense of socialpurpose aided by the 480 offices comprising branches, sub offices andthree Local Head Offices inherited from the Imperial Bank. The conceptof banking as mere repositories of the community's savings and lendersto creditworthy parties was soon to give way to the concept ofpurposeful banking sub serving the growing and diversified financial

needs of planned economic development. The State Bank of India wasdestined to act as the pacesetter in this respect and lead the Indianbanking system into the exciting field of national development.


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Mission, Vision & Values

VISION

My SBI. My Customer first. My SBI: First in customer satisfaction

MISSION

We will be prompt, polite and proactive with ourcustomers. We will speak the language of young India. We will create products and services that help our customers

achieve their goals. We will go beyond the call of duty to make our customers feel

valued. We will be of service even in the remotest part of our country. We will offer excellence in services to those abroad as much as

we do to those in India. We will imbibe state of the art technology to drive excellence.

VALUES

We will always be honest, transparent and ethical. We will respect our customers and fellow associates. We will be knowledge driven. We will learn and we will share our learning.

We will never take the easy way out. We will do everything we can to contribute to the community

we work in. We will nurture pride in India.


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BOARD OF DIRECTOR:


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ORGANIZATION:


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Domestic presence:

SBI had 14,816 branches in India, as on 31 March 2013, ofwhich 9,851 (66%) were in Rural and Semi-urban areas.In the

financial year 2012-13, its revenue was INR 200,560 Crores(US$ 36.9 billion), out of which domestic operationscontributed to 95.35% of revenue. Similarly, domesticoperations contributed to 88.37% of total profits for the samefinancial year.

International presence:

The Israeli branch of the State Bank of India locatedinRamat Gan.

As of 28 June 2013, the bank had 180 overseas offices spread

over 34 countries. It has branches of the parentinMoscow,Colombo,Dhaka,Frankfurt, HongKong,Tehran,Johannesburg,London, Los Angeles, Male intheMaldives,Muscat,Dubai, New York,
http://en.wikipedia.org/wiki/Ramat_Ganhttp://en.wikipedia.org/wiki/Moscowhttp://en.wikipedia.org/wiki/Colombohttp://en.wikipedia.org/wiki/Dhakahttp://en.wikipedia.org/wiki/Tehranhttp://en.wikipedia.org/wiki/Johannesburghttp://en.wikipedia.org/wiki/Maldiveshttp://en.wikipedia.org/wiki/Muscat,_Omanhttp://en.wikipedia.org/wiki/File:State_Bank_of_India_in_Israel.JPGhttp://en.wikipedia.org/wiki/File:State_Bank_of_India_in_Israel.JPGhttp://en.wikipedia.org/wiki/File:State_Bank_of_India_in_Israel.JPGhttp://en.wikipedia.org/wiki/File:State_Bank_of_India_in_Israel.JPGhttp://en.wikipedia.org/wiki/Muscat,_Omanhttp://en.wikipedia.org/wiki/Maldiveshttp://en.wikipedia.org/wiki/Johannesburghttp://en.wikipedia.org/wiki/Tehranhttp://en.wikipedia.org/wiki/Dhakahttp://en.wikipedia.org/wiki/Colombohttp://en.wikipedia.org/wiki/Moscowhttp://en.wikipedia.org/wiki/Ramat_Gan


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Osaka,Sydney, and Tokyo. It hasoffshore banking units intheBahamas,Bahrain, andSingapore,and representative officesinBhutan andCape Town.It also has an ADB in Boston, USA.

The Canadian subsidiary, State Bank of India (Canada) also

dates to 1982. It has seven branches, four in theToronto area andthree in theVancouver area.

SBI operates several foreign subsidiaries or affiliates. In 1990, itestablished an offshore bank: State Bank of India (Mauritius).SBI (Mauritius) has 15 branches in major cities/towns of thecountry including Rodrigues.

Associate banks

Main Branch of SBI in Mumbai.

SBI has five associate banks; all use the State Bank ofIndia logo, which is a blue circle, and all use the "StateBank of" name, followed by the regional headquarters'name
http://en.wikipedia.org/wiki/Osakahttp://en.wikipedia.org/wiki/Offshore_bankhttp://en.wikipedia.org/wiki/Bahamashttp://en.wikipedia.org/wiki/Singaporehttp://en.wikipedia.org/wiki/Bhutanhttp://en.wikipedia.org/wiki/Cape_Townhttp://en.wikipedia.org/wiki/Torontohttp://en.wikipedia.org/wiki/Vancouverhttp://en.wikipedia.org/wiki/File:SBI_Mumbai_Main_Branch.jpghttp://en.wikipedia.org/wiki/File:SBI_Mumbai_Main_Branch.jpghttp://en.wikipedia.org/wiki/File:SBI_Mumbai_Main_Branch.jpghttp://en.wikipedia.org/wiki/File:SBI_Mumbai_Main_Branch.jpghttp://en.wikipedia.org/wiki/Vancouverhttp://en.wikipedia.org/wiki/Torontohttp://en.wikipedia.org/wiki/Cape_Townhttp://en.wikipedia.org/wiki/Bhutanhttp://en.wikipedia.org/wiki/Singaporehttp://en.wikipedia.org/wiki/Bahamashttp://en.wikipedia.org/wiki/Offshore_bankhttp://en.wikipedia.org/wiki/Osaka


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State Bank of Bikaner & Jaipur State Bank of Hyderabad State Bank of Mysore State Bank of Patiala

State Bank of TravancoreNon-banking subsidiaries:

Apart from its five associate banks, SBI also has the followingnon-banking subsidiaries:

SBI Capital Markets Ltd

SBI Funds Management Pvt Ltd SBI Factors & Commercial Services Pvt Ltd

SBI Cards & Payments Services Pvt. Ltd. (SBICPSL)

SBI DFHI Ltd

SBI Life Insurance Company Limited

SBI General Insurance

In March 2001, SBI (with 74% of the total capital), joined withBNP

Paribas (with 26% of the remaining capital), to form a joint venturelife insurance company named SBI Life Insurance company Ltd. In2004, SBI DFHI (Discount and Finance House of India) wasfounded with its headquarters in Mumbai.
http://en.wikipedia.org/wiki/State_Bank_of_Bikaner_%26_Jaipurhttp://en.wikipedia.org/wiki/State_Bank_of_Hyderabadhttp://en.wikipedia.org/wiki/State_Bank_of_Mysorehttp://en.wikipedia.org/wiki/State_Bank_of_Patialahttp://en.wikipedia.org/wiki/State_Bank_of_Travancorehttp://en.wikipedia.org/wiki/State_Bank_of_Travancorehttp://en.wikipedia.org/wiki/SBI_Capital_Marketshttp://en.wikipedia.org/wiki/SBI_Cardshttp://en.wikipedia.org/wiki/SBI_Life_Insurance_Company_Limitedhttp://en.wikipedia.org/wiki/BNP_Paribashttp://en.wikipedia.org/wiki/BNP_Paribashttp://en.wikipedia.org/wiki/BNP_Paribashttp://en.wikipedia.org/wiki/BNP_Paribashttp://en.wikipedia.org/wiki/SBI_Life_Insurance_Company_Limitedhttp://en.wikipedia.org/wiki/SBI_Cardshttp://en.wikipedia.org/wiki/SBI_Capital_Marketshttp://en.wikipedia.org/wiki/State_Bank_of_Travancorehttp://en.wikipedia.org/wiki/State_Bank_of_Patialahttp://en.wikipedia.org/wiki/State_Bank_of_Mysorehttp://en.wikipedia.org/wiki/State_Bank_of_Hyderabadhttp://en.wikipedia.org/wiki/State_Bank_of_Bikaner_%26_Jaipur


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LOCATION OF SBI IN INDIA


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SBI INTERNATIONAL LOCATION :


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MARKET

CUSTOMER ANALYSIS

Category RiskPerception

Targeted Products

Higher class Generallycomplicated

one, selective

in choosingthe products

and they may

be willing to

take risk for

earning higher

returns.

Customers

may also

demand for

customization

of products to

fit their

requirement.

Home Loan, Demat Services, NRE/NR

Accounts, Safe Deposit Locker

Middle class Moderate risktakers.Ex : struggling

techies

Term Deposits, Car loan, Personal Loan etc

Lower class They havelimited sense

of choice and

are very much

Savings Bank A/C, Recurring Deposits, Go

Loans etc


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concerned on

the risk

inherent in

the productType of

customer

Financial

Position

Targeted Products

Mainstream

customers

Moderate to

Good

SB,InternetBanking,MobileBanking,ATMcard

,LifeInsurance,Mutual Funds etc

Students and

Underbanked

Weak Education Loan,No frills Account,Kisan Cred

Card,DairyLoan,Tractor Loan etc

High net

worth and

mass affluent

Healthy Home Loans,NRIServices,FCNB Premiu

Acount, ASBA etc

Retired and

others with

wealth butvery little

income

Good Term Deposits, Pension Loans etc

Status of

company

e.g., private

company,

public

company,

government

corporations,partnership

firm,

proprietorship

firm);

SME power Current Accounts etc


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Industry

classification

e.g.,

manufacturing

industry,

trading

industry,

service

industry

SME Smart Score, SME Credit Card, Rice M

Plus, Traders Easy Loan, Doctor Plus etc

Requirement

of funds

e.g., company

needing Rs.

20-50 million,

Rs. 50-100

million, above

Rs. 100 million

As per the guidelines of CAG, MCG.

Life-cycle of

the company

start-up

company,

growing

company,

mature

company

School Plus, Warehouse Receipt finance etc

Market

served by thecompany

e.g., domestic

market,export market

Related to Trade finance, Project Finance et


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PRODUCT OF SBI


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]

PRODUCTS

HOME LOAN AS AN OVERDRAFTAn innovative and customer-friendly product enabling the customers to

earn optimal yield on their savings by reduce interest burden on HomeLoans, with no extra cost.

The loan is sanctioned as an Overdraft with added flexibility to operatethe Home Loan Account like SB or Current Account. Bank alsoprovides Cheque Book/Net Banking facility for the purpose.

The product enables customers to park their surplus funds/savings inSBI Maxgain (with an option to withdraw whenever required),especially in the wake of low yields on other Deposit/Investmentproducts.

Loan Amount

Minimum Loan Amount: Rs.5 lacsMaximum Loan Amount: No Cap

Interest RateA premium of 0.25% over and above the applicable Home Loaninterest rate for Home Loan > Rs.1 crore is payable.

(Other terms and conditions are as applicable to regular Home LoanScheme)


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SBI YUVA HOME LOAN

TAILOR MADE HOME LOAN SCHEME FOR THE

YOUTH

SBI YUVA Home Loan provides 20% higher loan amount than that ofnormal Home Loan eligibility to Salaried employees of Private SectorCompanies/MNCs/Government Undertakings/PSUs & the Governmentemployees.

EligibilityAge between 21 years to 45 years.

Minimum Net Monthly Income of applicants should be Rs.30,000/- (expected rental income from the proposed propertyshould not be included in the monthly income of the borrower).

RepaymentUnder SBI Yuva Home Loan Scheme, only the interest applied onHome Loan is payable during the first 36 months. The regular EMIsstart after completion of 36 months.

(Other terms and conditions are as applicable to regular Home LoanScheme)

NRI HOME LOANS:

HOME LOANS TO NON RESIDENT INDIANS (NRIs) &

PERSONS OF INDIAN ORIGIN (PIOs)

EligibilityNon Resident Indians (NRIs) or Persons of Indian Origin(PIOs)The applicants should have a regular source of income.Minimum employment tenure in India/Abroad should not be less than 2

years.


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Loan AmountMinimum Loan Amount: Rs. 3 lacsMaximum Loan Amount: No

upper cap.

(Other terms and conditions are as applicable to regular HomeLoan Scheme)

SBI REALTY

HOME LOANS FOR PURCHASE OF PLOT FOR

CONSTRUCTION OF A DWELLING UNIT

SBI Realty provides an opportunity to the customer to purchase a plotfor construction of house.

The construction of house should commence within 2 years fromthe date of a ailment of SBI Realty Loan.

Customers are also eligible to avail another Home Loan forconstruction of house on the plot financed under the SBI Realtywith the benefit of running both the loans concurrently.

Loan Amount : Maximum Loan Amount: Rs.10 crores

Repayment Period : Up to 15 years



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SBI PAL

PRE-APPROVED HOME LOAN

The SBI PAL provides sanction of Home Loan limits to the

customers before finalization of the property which enables them tonegotiate with the Builder/Seller confidently.

The loan eligibility will be assessed on the basis of income details ofthe applicant.

Non-refundable processing fee as applicable to the Home Loan willbe collected at the time of sanction.

Validity Period

Pre-approved loan arrangement letter (PLAL) will be valid for aperiod of 4 months. Property papers will be required to besubmitted by the borrower within the validity of PLAL. Processingfee will not be levied again.

Loan Amount

Pre-approved loan arrangement letter (PLAL) will carry theeligible loan amount calculated on the basis of prevailing interestrates

Minimum Loan amount: Rs.10 Lacs.



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SLOGAN OR LOGO OF SBI :

SLOGAN

"PURE BANKING, NOTHING ELSE",

"WITH YOU - ALL THE WAY"

"A BANK OF THE COMMON MAN"

"THE BANKER TO EVERY INDIAN"

"THE NATION BANKS

LOGO:


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ADVERTISING INITIATIVES:


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FINANCIAL ANALYSIS :

DATA TO BE STUDIED

TABULATED

GRAPHICAL DEPICTED

LAST 10 YEAR REVENUE


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DATA TO BE STUDIED (METHODOLOGY RESEARCH)


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ANALYSIS OF DATA


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HIGHLIGHTS


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BALANCE SHEET :


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SHARE BSE:

SHARE NSE:


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GOVERENCE:

State Bank of India is committed to the best practices in the

area of Corporate Governance, in letter and in spirit. The Bank

believes that good Corporate Governance is much more than

complying with legal and regulatory requirements. Good

governance facilitates effective management and control of

business, enables the Bank to maintain a high level of business

ethics and to optimize the value for all its stakeholders. The

objectives can be summarized as:

To protect and enhance shareholder value.

To protect the interest of all other stake holders such as

customers, employees and society at large.

To ensure transparency and integrity inCommunication and

to make available full, Accurate and clear information to allconcerned.

To ensure accountabilityfor performance and customer

service and to achieve excellence at all

levels.

To provide corporate leadership of higheststandard for

others to emulate.

The Bank is committed to: Ensuring that the Banks Board of Directors

meets regularly, provides effective leadership and insights in

business and functional matters and monitors Banks

performance.


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Establishing a framework of strategic control and

continuously reviewing its efficacy.

Establishing clearly documented and transparent

management processes for policy development,

implementation and review, decision-making,Monitoring, control and reporting.

Providing free access to the Board to allrelevant information,

advices and resources as are necessary to enable it to carry out

its role effectively.

Ensuring that the Chairman has the responsibilityfor all

aspects of executive management and is accountable to the

Board for the ultimate performance of the Bank andimplementation of the policies laid down by the Board. The role

of the Chairman and the Board of Directors are also guided by

the SBI Act, 1955 with all relevantamendmnts.

Ensuring that a senior executive is maderesponsible in respect

of compliance issues with all applicable statutes, regulations and

other procedures, policies as laid down by the GOI/RBI andother regulators and the Board and reports deviations, if any

.The Bank has complied with the provisions of Corporate

Governance as per Clause 49 of the Listing Agreement with the

Stock Exchanges except where the provisions of Clause 49 are

not in conformity with SBI Act, 1955 and the directives issued

by RBI/GOI. A report on the implementation of these

provisions of Corporate Governance in the Bank is furnished

below.


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ENVIRONMENTAL INITIATIVES:

State Bank of India (SBI) has become the first bank in thecountry to venture into generation of green power by installingwindmills for captive use.

As part of its green banking initiative,SBI has installed 10windmills with an aggregate capacity of 15 MW in the states ofTamil Nadu, Maharashtra and Gujarat.

"We have planned to install an additional 20 MW capacity ofwindmills in Gujarat soon and touch 100 MW power generationthrough windmills within five years," SBI chairman OP Bhatttold reporters after inaugurating the windmills at Panapatti sitein Vadaputtur Village in Pollachi Taluk in Coimbatore onFriday. He said windmills are set up with a definite objective ofreducing the dependence on the polluting thermal power and noton purely economic or business considerations.

"At present, the bank consumes 100 MW of power per year. So,

we will try to be energy neutral and reduce our carbonfootprints," he added.

The total cost of installation of a windmill of 1.5 MW is aroundRs 10 crore. "The operation cost is close to zero and we expectto recover the initial investment in four years," said Mr. Bhatt.Suzlon Energy had erected the windmills in four months.

"Our mission is to make all Indian banks go green and we arealready discussing with 25 banks," said Suzlon CMDTulsi R Tanti.

He said, "Suzlon, which currently holds 55% market share in thecountry is now more focused on wind power development. Of
http://economictimes.indiatimes.com/state-bank-of-india/stocks/companyid-11984.cmshttp://economictimes.indiatimes.com/sbi/stocks/companyid-11984.cmshttp://economictimes.indiatimes.com/suzlon-energy-ltd/stocks/companyid-1209.cmshttp://economictimes.indiatimes.com/suzlon-energy-ltd/stocks/companyid-1209.cmshttp://economictimes.indiatimes.com/sbi/stocks/companyid-11984.cmshttp://economictimes.indiatimes.com/state-bank-of-india/stocks/companyid-11984.cms


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the 11,000 MW installed wind energy in India, 6,000 MW hasbeen installed by Suzlon.

"There is 45,000 MW wind power potentiality in the countryand we will target that market here," Mr. Tanti added. Mr. Bhatt

said, the bank will also support the green initiatives of its clientsand will offer them finance on priority and at concessionaryrates of interest. Towards that end, the bank has launched a loanproduct called 'Carbon Credit Plus' to finance the future CERreceivables of CDM projects.

Earlier, Mr. Bhatt referred to the upward bias in interest rates in

the coming months as the manufacturing sector activities arepicking up. He said the credit growth will be much better thanthe 18% registered last fiscal and it might even touch 23% asagainst RBI expectation of around 20% this year.

According to him, retail and agriculture sectors will pick up inthe second quarter, while the third quarter will see huge build upin infrastructure front and increase in capex and working capital.

"The industry is working at 80% capacity now, which is close toits peak of 85% and so the credit growth will be fairly good thisyear," he added.

On teaser home loans, Mr Bhatt said, the bank has stayed withthe last package for nearly 18 months now unlike the earliershort periods of three or four months. It will announce the newinterest rates by this month-end after accessing the future

demand. "It is possible that the base rate might settle at around8%," he added.

Regarding non-performing assets, Mr Bhatt said, net NPAs hascome down in the last fiscal for SBI and the trend is expected tocontinue this year as the economy is doing well.


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CORPORATE SOCIAL RESPONSIBILITY (CSR):

1. The Bank keeps aside 1% of its net profit for corporate social

responsibility and the Endeavour is to have full achievement ofthe same.2. The Bank CSR policy involves donation under the followingmajor categories:i) National donations to Prime Ministers andChief MinistersRelief Funds for natural and other calamitiesii) Contribution to organizations having exemption under 80G of

the Income Tax Act largely for equipment and vehicles,iii) Distribution of fans and water purifiers to neighbourhoodschools.

Assam (f loods) - ` 2 croresDuring the year we are happy that the target of donating 1% ofthe net profits to CSR, which has eluded the Bank earlier, wasnot only fully achieved but was surpassed.

3. Other Flagship programmes:Looking to the deep inconvenience and discomfort studentsfaced in hot summer in classrooms with out the fans, the Bankdonated 1,40,000 fans to 14,000schools. The methodology wasthat every branch of the Bank adopted a school in its


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neighbourhood attended by students from modest backgroundand installed 10 fans and one water purifier.This strategy gave wide reach to the activity and every singleregion of the country having SBI branch had schools in the

Vicinity benefitting from donation of fans and a water purifier.Rajasthan.

Rajasthan (floods) - ` 2 crore

Donation of water purifier JAI Kisan School,

Manjhatali Gumla, Jharkhand Donation of school bus to

N.C. Chaturvedi school for deaf


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CRISIL RATINGS:

STATE BANK OF INDIA RATINGS BY INTERNATIONAL

AGENCIES

MOODYS INTERBANK CREDIT SERVICES LTD. (MOODYS)

AUGUST 2013

Country SBI

Foreign Currency

Long Term Ba2 Ba2

Short Term Not Prime Not Prime

Domestic Currency

Long term Ba2 A2

Short Term Not prime Prime-2

Banks FSR D+

Long Term Deposit Rating Outlook

Foreign Currency Stable StableDomestic Currency Stable Stable

FSR Outlook Stable

Banks MTN Programme (US$ 1 billion):

Senior Unsecured Debt: Baa3 Baa2

Subordinated Debt: Baa3 Baa3


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STANDARD & POORS

AUGUST 2013

Country SBIForeign Currency

Long Term BB BB+

Short Term B B

Domestic Currency

Long term BB+ BB+

Short Term B B

Long Term Deposit Rating Outlook

Foreign Currency Positive Stable

Domestic Currency Stable Stable

Banks MTN Programme

( US$ I billion )

Senior Unsecured Debt: BB BB+

Subordinated Debt: BB- BB

DOMESTIC RATINGS FOR BONDS

Bonds

CRISIL AAA

Fitch Ind AAA


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AWARD AND ACCHIEVEMENTS:

SBI was ranked 298th in theFortune Global 500rankings of the world'sbiggest corporations for the year 2012.

SBI won "Best Public Sector Bank" award in theD&B India's study on

'India's Top Banks 2013'. State Bank of India won three IDRBT Banking Technology Excellence

Awards 2013 for Electronic Payment Systems, Best use of technologyfor Financial Inclusion, and Customer Management & Business

Intelligence in the large bank category.

SBI won National Award for its performance in the implementation ofPrime Ministers Employment Generation Programme (PMEGP) schemefor the year 2012

Best Online Banking Award, Best Customer Initiative Award & Best RiskManagement Award (Runner Up) by IBA Banking Technology Awards2010

SKOCH Award 2010 for Virtual corporation Category for its e-paymentsolution

SBI was the only bank featured in the "top 10 brands of India" list in anannual survey conducted byBrand Finance and The Economic Timesin2010.

The Bank of the year 2009, India (won the second year in a row) by TheBanker Magazine Best BankLarge and Most Socially Responsible Bank by the Business

Bank Awards 2009 Best Bank 2009 by Business India The Most Trusted Brand 2009 by The Economic Times. SBI was named the 29th most reputed company in the world according to

Forbes 2009 rankings Most Preferred Bank & Most preferred Home loan provider by CNBC Visionaries of Financial Inclusion By FINO Technology Bank of the Year by IBA Banking Technology Awards SBI was 11th most trusted brand in India as per theBrand Trust Report

2010.
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EXTRANAL ENVIRONMENT :

TORONTO: The global financial crises will have minimumimpact on the Indian economy and the country will do better

than the rest of the world, chief of India's major public sectorbank has said.

India should be able to achieve an annual growth of about sevento eight per cent -- quite a good figure, considering the currentclimate, President and Chief Executive Officer of the State Bankof India (Canada) ArunNagarajan said.

However, "no one can predict how long or deep the currentmarket turmoil will be," Nagarajan said while addressing Indo-Canadian community here at a Diwali dinner hosted by thebank.

Urging Canadian investors to invest in India, Nagarajan said thatthe country's banking system was sound and well capitalized.

"It was not exposed to the type of assets which have given riseto the global financial crisis," he said, adding that this was thetime for investors to buy stocks and hold them for some time.

Global slowdown will have minimum impact

on Indian economy: SBI


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SBI promotes environment issues organises Go green rally in

Chandigarh

Donates 200 cycles to poor students

Sh Ram Niwas,Home Secretary, Chandigarh Administrationtogether with ShDiwakar Gupta, Managing Director, SBI

flagged off a massive "Go Green - Cycle Rally" in which peoplefrom every walk of participated. Almost700 persons took part inthe cause where they learn the lessons of the green environmentand how to protect ourselves from global warming. The rally isorganized to promote awareness about Global warming and toprotect environment.


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On the occasion, Managing Director, SBI,Diwakar Gupta andChief General Manager, SBI Chandigarh Circle - S.K. Sehgal,together with Ram Niwas, Home Secretary, distributed 200cycles to poor and needy students, majority of which are girls

Speaking on the occasion,S.K. Sehgal, Chief General Manager,State Bank of India, Chandigarh Circle stressed the need toinculcate the habit of using cycle to make the environmentpollution free. In the recent past, SBI has also initiated TreePlantation Program under GO GREEN CAMPAIGN, in the

southern sectors.

Ram Niwas, Home Secretary, appreciated the efforts on part ofState Bank of India for the noble cause.

SWOT ANALYSIS


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State Bank of India - SWOT Analysis

Description: State Bank of India - SWOT Analysis company profileis the essential source for top-level company data andinformation. State Bank of India - SWOT Analysis examines the

companys key business structure andoperations, history and products, and provides summary analysisof its key revenue lines and strategy.

State Bank of India (SBI) is the leading commercial bank in India,offering services such as retail banking,commercial banking, international banking and treasuryoperations. The bank is an integral part of StateBank Group, which includes seven other banks and offersadditional services such as mutual funds andinsurance. The bank primarily operates in India.

It is headquartered in Mumbai, India.205,896 people. The bankrecorded revenues of INR335,639.3 million (approximately$6,484.6 million) in thefinancial year (FY) ended March 2009, an increase of 30.5% overFY2008. The operating profit of the

company was INR179,152.3 million (approximately $3,461.2million) in FY2009, an increase of 36.7% overFY2008. The net profit was INR91,212.4 million (approximately$1,762.2 million) in FY2009, an increase of35.5% over FY2008.

SWOT Analysis


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Strength 1. The biggest bank in the country2. Has a separate act for itself. Thus, a specialprivilege.3. Biggest branch network in the country4. First public sector to move to CBS

Weakness 1. Huge amount of staff2. Expected to experience high level of attrition dueto retirement of its top management3. Still carries the image of the old Govt. sector bank

Opportunity 1. Pool in talent to replace the going topmanagement to serve the next generation2. Make better use of its CRM3. Expansion into rural areas

Threats 1. Consolidation among private banks2. New bank licenses by RBI3. Foreign banks that have sophisticated products

sbi final rep[rt

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