Spine to be adjusted by printerState Bank of India | Annual Report 2015-16 A SMART BANK, FOR IND INDIA ON THE GO… State Bank Bhavan Follow us on : Corporate Centre, Madame Cama Marg, Mumbai, Maharashtra - 400021 theofficialsbi statebankofindiaofficial Annual Report 2015-16 Spine to be adjusted by printer Spine to be adjusted by printer contents Notice...................................................................................................01 CORPORATE BANKING GROUP............................................... 55 About SBI............................................................................................ 02 Corporate Banking...................................................................... 55 SBI’s Journey Through Numbers...................................................... 03 Transaction Banking Unit........................................................... 56 Smart Bank for India on the Go....................................................... 04 Project Finance & Leasing.......................................................... 58 Ratings ................................................................................................ 09 Mid Corporate Banking.............................................................. 59 Sbi Group Structure........................................................................... 10 International Operations........................................................... 60 Performance Indicators.................................................................... 12 Stressed Assets Management................................................... 65 Financial Highlights for last 10 years............................................... 14 TREASURY OPERATIONS........................................................... 68 Central Board of Directors................................................................ 16 (iv) Support and Control Operations........................................... 71 Committees of the Board/Members of Human Resources and Training................................................ 71 Local Boards/Members of Central Management Committee/Bank Auditors........................................ 18 Information Technology............................................................. 76 The Chairman’s Message.................................................................. 22 Risk Management ....................................................................... 81 Directors’ Report Official Language......................................................................... 87 (I) Economic Backdrop and Banking Environment................ 30 Vigilance Mechanism.................................................................. 89 (II) Financial Performance............................................................. 33 Corporate Social Responsibility................................................. 89 (III) Core Operations........................................................................ 34 (v) Associate & Subsidiaries.......................................................... 94 National Banking Group.................................................. 34 Corporate Governance.......................................................... 104 Personal Banking........................................................................ 35 Business responsibility report........................................... 127 Anytime Channels....................................................................... 39 Financial Statements Balance Sheet, profit & Loss Accounts & Small & Medium Enterprises..................................................... 46 Report of the Auditors Rural Banking.............................................................................. 50 State Bank of India (standalone)............................................. 128 Other New Business Initiatives................................................. 52 State Bank of India (consolidated).......................................... 202 Government Business................................................................ 53 Basel (III) - Pillar 3 Disclosures........................................... 252 Efficiency & Cost Control............................................................ 54 Disclosures on indicators for identification of Global Systemically Important Banks (G-SIBs)............................. 282 Spine to be adjusted by printer notice STATE BANK OF INDIA (Constituted under the State Bank of India Act, 1955) The 61st Annual General Meeting of Shareholders of the State Bank of India will be held at the “Y. B. Chavan Auditorium”, Y. B. Chavan Centre, General Jagannath Bhosale Marg, Nariman Point, Mumbai-400021 (Maharashtra) on Thursday the 30th June, 2016, at 03.00 p.m. for transacting the following business:- ‘‘To discuss and adopt the balance sheet and the profit and loss account of the State Bank made up to the 31st day of March 2016, the report of the Central Board on the working and activities of the State Bank for the period covered by the accounts and the auditor’s report on the balance sheet and accounts’’. Corporate Centre, State Bank Bhavan, Madame Cama Road, Mumbai - 400 021 (ARUNDHATI BHATTACHARYA) Date: 23rd May, 2016 CHAIRMAN Important Information Dividend Declared : `2.60 per share Dividend Payment Date: 22.06.2016 Period of Book Closure: 07.06.2016 to 11.06.2016 Record Date: 06.06.2016 State Bank of India | Annual Report 2015-16 1 About SBI Founded in 1806, Bank of The Bank is India’s largest to personal, commercial Calcutta was the first bank commercial Bank in terms enterprises, large corporates, established in India and over of assets, deposits, profits, public bodies and institutional a period of time evolved into branches, number of customers customers through its various State Bank of India (SBI). SBI and employees, enjoying the branches and outlets joint represents a sterling legacy of continuing faith of millions of ventures, subsidiaries and over 200 years. It is the oldest customers across the social associate companies. commercial bank in the Indian spectrum. subcontinent, strengthening the nation’s trillion-dollar economy Headquartered at Mumbai, and serving the aspirations of SBI provides a wide range its vast population. of products and services Our Vision Our Values My SBI. We will always be honest, transparent and ethical. My Customer first. We will respect our customers My SBI: First in customer and fellow associates. satisfaction. We will be knowledge driven. Our Mission We will be prompt, polite and proactive with our customers. We will learn and we will We will speak the language of young India. share our learning. We will create products and services that help our customers achieve their goals. We will never take the easy way out. We will go beyond the call of duty to make our customers feel valued. We will be of service even in the remotest We will do everything we can to part of our country. contribute to the community we work in. We will offer excellence in services to those abroad as much as we do to those in India. We will nurture pride in India. We will imbibe state-of-the-art technology to drive excellence. 2 State Bank of India | Annual Report 2015-16 SBI’s Journey Through Numbers 1 No. Largest Bank in India 30.12 crore+ 31.90 Business size lakh crore+ 36,000 Merchant Banking Active (Deposits, Advances, customer base Tie-ups Branches, Employees) 59,000+ Pan-India ATMs 64,628 Business correspondent and 7.22 Core Banking crore+ 1.16 crore+ Daily average ATM Customer Service Points Transactions (daily transactions average transactions) 23.30 crore+ State Bank Group debit 2.55 crore+ Internet banking 4.09 lakh+ Average calls per day 3.00 POS machines lakh+ card holders users on Contact Centre 1.77 crore+ Green Remit Cards 1,03,565 Pan-India village 4.21 crore+ RuPay Debit Card 5.32 crore+ Pradhan Mantri Jandhan coverage Yojna Accounts Expanding Digital Footprint in Internet Banking Transactions (crore) Mobile Banking Transactions (lakh) POS Transactions (lakh) 1441 124 882 90 565 771 64 574 278 SBI Online is the World's 8th most Visited Banking Site 2013-14 2014-15 2015-16 2013-14 2014-15 2015-16 2013-14 2014-15 2015-16 State Bank of India | Annual Report 2015-16 3 and in some cases. They Go!” demands. As a fully committed adopters literate and are using the formal banking of the digital medium. millions from to keep our customers always connected. At SBI. New model and with an eye on the future. India is certainly on the Go! It was with this spirit that. unprecedented growth in data. And we have always evolved as Digital India. SBI is embracing and evolving a digital business model and has grown its technology and channel platforms proportionately. SBI has grown in FY2016. BharatNet with the times to embrace new consumer etc. we talked about how we have become As the largest bank in India. India is rapidly advancing towards their money. driven or even a PC. for of the curve. rural India have become more financially always on. With well positioned trend setter for the industry. Aptly. corporates. are increasingly demanding an end-to-end experience and greater consistency when Going forward. we have made significant millions of personal lives. At SBI. social media and their with the service levels that an “India on the smart phones to do their banking. Indians are increasingly attitudes and be aligned as a “Smart” Bank using the internet.A Smart Bank for India on the Go… As the digital economy flourishes. Not to be left behind. social and public institutions are leveraging media. we foresee an doing their banking via their mobile. an economy that is growing steadily and surely. to become a “Smart Bank. various digital platforms we have created. defining how people go about doing routine position us well to set new benchmarks and chores. our Annual Report is its technology and channel platforms dedicated to the many milestones we have proportionately. We realise that modern banking is about enabling our customers to have a meaningful relationship with 4 State Bank of India | Annual Report 2015-16 . we are integral “Bankers to Digital India”. As the digital technological advancements and adoptions economy flourishes. have to bring banking to the fingertips of our customers. and today. we are the Internet to conduct their business embracing and evolving a digital business more efficiently and economically. we are confident of system to have a more direct relationship remaining highly competitive. relevant and with their money and social benefits. They wish to transact more becoming a first world nation. In continuation to thousands of commercial entities and of that journey. last year. As a result. iPad. The “disruptive” businesses are altogether re. accurately and efficiently than it is focusing on new opportunities such ever before. Similarly. Smart Cities. cloud and analytics. SMEs by the latest trends in mobility. ahead crossed. we know that we India on the Go”. quickly. FOR INDIA ON THE GO… State Bank of India | Annual Report 2015-16 5 .A SMART BANK. Today. When it comes to issuing by thousands of our customers. machines. 122 sbiInTOUCH Branches and growing 35. When it comes to debit cards. thousands of customers are already experiencing a new way of banking. engage with our young generation as it has the largest comprehensive early as possible. through our “sbiINTOUCH” realises our vision for mobile banking services in India joint venture SBICPSL. the SBI Group for integrating the huge network with 1. These outlets are equipped Similarly. The Bank is currently the market leader cards to our customers.A “Smart” Bank for the new generation Currently in our 122 “sbiINTOUCH” branches. and 12% market share in terms of world class banking experience to the spends. which allow customers to 6 State Bank of India | Annual Report 2015-16 . Sector Banks.97% Mobile Banking Market Share in value terms Keeping with the tradition of adapting our transact on a self-serving mode and has taken concerted steps to be at product lines and services to changing with both onsite and remote expert the forefront of establishing a deep requirements. SBI recognised the trend SBI alone has a base of more than 23 with state-of-the-art gadgets and towards cashless society early and crore users. in the hands of our customers to the top four transaction acquirers within a short span of two years. Today. At SBI. we enhance their convenience. ecosystem for plastic money. we are amongst benchmark in branch banking. SBI is committed to assistance.97% in terms of value of company with a base of 35 lakh users mobile platforms together to provide a transactions. we are focused on With more than 3 lakh POS terminals an assertive step in being the new placing Mobile Banking functionalities deployed in the market.77 crore users and a market is the 3rd largest Credit Card issuing of bank ecosystem and the digital/ share of 35. we took behaviours. With the expansion Mobile smart phones have also made a electronic infrastructure in the country of our “sbiINTOUCH” branches across paradigm shift on our working and social to accept payment through Cards. 70 districts of the country. to build in India with the largest number of now have 122 “sbiINTOUCH” branches strong relationships. customer. to reduce costs merchant relationships amongst Public that are already being experienced and to keep strengthening our brand. Today. 36. direct or through State Bank Collect and e-Commerce SBI has made big strides and leadership aggregators. Corporates use this portal. achieving 39% growth over across the country have migrated to our the previous year. and efficiency. we are the largest player in the e-Commerce space within the country.A “Smart” Bank for Corporates and Governments With more than 67 crore e-Commerce transactions in FY2016. State Government Departments more than 124 crore transactions during vendors and more than 12. nearly 2. merchant tie-ups.900 Central. FY2016. major player in the e-Commerce space SBI has been a pioneer in developing within the country.000 Merchant Banking Tie-ups 2. Over categories. including their working capital cycle. new merchant PSUs and Government Agencies.250 Corporate USE e-Trade Portal It is said that money makes the world SBI’s e-Trade web-based portal and State Governments to migrate their go round.900 dealers and Municipal Corporations. This growth and better profitability. service by any bank in India. With over 36.com financing their Supply Chain Partners SBI e-Pay is the first and only aggregator provides robust and customer friendly through our e-VFS/ e-DFS platforms. making us by far a new levels of efficiency and productivity. customised e-solutions to allow Central State Bank of India | Annual Report 2015-16 7 . We are also Our banking platform onlinesbi. corporate facilitating an efficient management of platform aspires to bring in additional and institutional customers. we have facilitated more position in using its digital infrastructure than 67 crore e-Commerce transactions to enable e-governance to step up to during FY2016.250 transparency into the system. sustained payment modes. Nowadays. with a special focus on cost-effective channel has enabled 182 Industry Majors with nearly 3.000 electronic platform. doing trade and enhances our customers’ access to transactions to the online mode and transactions online makes the world go trade finance services with speed bring in more overall efficiency and round even faster. This net banking services to retail. responsibility to inform and educate our methods and new technologies is crucial customers on how to make full use of if we are to maintain our peer position the technologies around them to make in digital banking.000 participants. thousands of our customers are of every SBI employee. We need to ensure that adopting digital channels more than that we ourselves are fully equipped to our customers are also upto date and ever before.Keeping our Customers and Employees “Smart” We take great efforts to educate our customers and employees to keep up with the technological changes around them. of our operations.000 Trained Participants Being a “Smart” Bank with multiple services by the common man. breadth of the country for conducting research projects and e-publications on Many customers still visit branches for interactive learning sessions and demos our learning portal ‘Gyanodaya’. With the main During the year. On the other side. we 2. we are ensuring and risky. keeping our own At SBI. to take on a 24X7 basis. the best banking practices in all spheres match with what we have to offer. Now. case studies. ‘Mobile are many who feel left behind with the Centres (TLCs) across the length & Nuggets’ ‘e-Capsules’. These included digital channels is not enough. with mandatory training hours required feel electronic channels are complex Now. through and facilitating effective use of financial which we have trained more than 8 State Bank of India | Annual Report 2015-16 .79. 385 Technology Learning Centres 279. There have set up 385 Technology Learning hundreds of ‘e-Lessons’. SBI is judiciously their lives easier and to help themselves leveraging on-line platforms to impart for whatever banking action they need knowledge and educate its workforce. fast pace of change we see all around. their routine transactions because they of the Bank’s various tech-channels. we established a objective of imparting financial literacy e-library of on-line lessons. we recognise that it is our people upto speed with the latest trends. 2016 RATING RATING AGENCY Positive/Baa3/P-3/ba1 Moody’s Bank Rating BBB-/Stable/A-3 S&P BBB-/F3/Stable Fitch Instrument Innovative ‘AAA/Stable’ Crisil Perpetual Debt “CareAAA’ Care Instruments Upper Tier II ‘AAA/Stable’ Crisil Subordinated “CareAAA’ Care Debt Lower Tier II ‘AAA/Stable’ Crisil Subordinated “CareAAA’ Care Debt ‘(ICRA)AAA’ ICRA Basel III ‘AAA/Stable’ Crisil Tier 2 “CareAAA’ Care ‘(ICRA)AAA(hyb) ICRA Care: Credit Analysis & Research Limited ICRA: ICRA Limited CRISIL: CRISIL Limited S&P: Standard & Poor State Bank of India | Annual Report 2015-16 9 .Ratings as on 31st March. 09% State Bank of Travancore 100% SBI Mutual Fund Trustee Company Private Limited 86. Limited 90% State Bank of Mysore SBI CAP (Singapore Limited) 63.07% State Bank of Bikaner & Jaipur 100% SBI Capital Markets Limited SBI CAP Securities Limited 100% State Bank of Hyderabad SBI CAP Ventures Limited SBI CAP (UK Limited) SBI CAP Trustees Co.Sbi Group Structure as on 31st March. 2016 SBI Domestic Banking Subsidiaries Non-Banking Subsidiaries/ Joint Ventures 75.78% SBI DFHI Limited 100% State Bank of Patiala 100% SBI Payment Services Private Limited 79.18% SBI Global Factors Limited 60% SBI Pension Funds Private Limited 63% SBI Funds Management Private Limited SBI Funds Mgt. (International) Private Limited 60% SBI Cards & Payment Services Private Limited 10 State Bank of India | Annual Report 2015-16 . Pte. Limited Macquarie SBI Bank SBI Botswana Limited Infrastructure Trustee Pte. Co.60% SBI Mauritius Limited 40% GE Capital Business Process 99. Limited 100% 45% SBI Macquarie Infrastructure Management Private Limited 20% Bank of Bhutan Limited SBI Macquarie Infrastructure 45% Trustee Private Limited 50% Oman India Joint Investment Fund- Management. Private Limited SBI Foundation 100% State Bank of India | Annual Report 2015-16 11 . Services Private Limited Bank SBI Indonesia Macquarie SBI Infrastructure 55.00% Mgt.10% 45% Nepal SBI Bank Limited Management. Ownership Figures in % Foreign Banking Subsidiaries / Joint Ventures 74% SBI Life Insurance 100% State Bank of India (California) Company Limited 65% SBI-SG Global Securities 100% Services Private Limited SBI Canada Bank 74% SBI General Insurance 60% Commercial Indo Bank LLC Company Limited Moscow 49% C-Edge Technologies Limited 96. Private Limited 50% Oman India Joint Investment Fund-Trustee Co. 49 3.67 56.553 49.158 55.46 7.17 0.882 28.537 174.74 2.Performance Indicators Total Income (` in crore) Operating Profit (` in crore) Net Profit (in crore) 13.844 39.891 9.102 43.16 0.65 10.576 18.17 0.951 154.68 3.282 49.904 32.015 22.973 10.96 2013-14 2014-15 2015-16 2013-14 2014-15 2015-16 2013-14 2014-15 2015-16 12 State Bank of India | Annual Report 2015-16 .109 2013-14 2014-15 2015-16 2013-14 2014-15 2015-16 2013-14 2014-15 2015-16 Net Interest Income (` in crore) Other Income (` in crore) Cost to Income Ratio % 52.13 2013-14 2014-15 2015-16 2013-14 2014-15 2015-16 2013-14 2014-15 2015-16 Net Interest Margin % Return on Assets % Return on Equity % 11.258 191.04 49. 34 2013-14 2014-15 2015-16 2013-14 2014-15 2015-16 2013-14 2014-15 2015-16 Earnings in FY2015-16 % Expenditure in FY2015-16 % Interest and discount 0.60 1. Exchange and Provisions & Contingencies Brokerage 22.409 160.22 2.65 Bonds & Others 15.576.829 1.95 4.13 Interest Paid on Deposits 1.20 2. State Bank of India | Annual Report 2015-16 13 .300.026 1.14 *The face value of shares of the Bank was split from ` 10 per share to ` 1 per share from 22nd November.92 1.78 Associates Dividend & Tax on Dividend Miscellaneous Income 4.53 60.55 6.209.50 3. All the information reflect the effect of the split for each period presented.730.40 9.72 2.394.38 Taxation 51.68 12.96 advances/bills 8.463.81 15.29 On Sale of Investments Transfer to Reserve Dividend from Subsidiaries/ 21.84 150.00 Interest on Investments 2.25 3.37 Other Sundry Interests Operating Expenses Commission.60 Basel-III 3.98 4.722 9. 2014.61 Interest paid on Borrowing/ 2.72 9.25 2.12 2013-14 2014-15 2015-16 2013-14 2014-15 2015-16 2013-14 2015-15 2015-16 Deposits and Advances (` in crore) Book Value Per Share* (` ) Capital Adequacy Ratio % Tier I Tier II Deposits Basel-III Advances Basel-III 1.793 1.700 176.69 3.Earning per Share* (`) Gross NPA Ratio % Net NPA Ratio % 17.57 2. 79 1.18.337 4.53. 85.295 3.519 15.66.063 Net Interest Income (` in crore) 15.248 80.25 Dividend Pay out Ratio % (`) 16.280 98.707 14.A N.A N.5 2.25 13. .98 10.151 1.257 64.198 3.1 2.98 2.88 0.66.76.69 3.466 46.16.23.81 Financial Highlights: 10 years at a Glance Number of Domestic Branches 9.20 Net NPA to Net Advances (%) 1.10 2.503 6.05.521 5.09.06 156.078.35.409 15.073 8.784 Number of Foreign Branches /offices 83 84 92 142 156 173 186 190 191 198 *The face value of shares of the Bank was split from `10 per share to `1 per share .94 (` in crore) N.98 13. N.07 3.94 10.816 15.713 1.81.012 1.026 14.186 11. N.325 1.56.20 2.12.92.A N.48.125 94.314 64.496 13.78 23.92 12.65 0.37.06 20.072.16 184.975 98.16.021 20.33.02.00.498 Deposits (` in crore) 4.38 9.66.102 9.728 53.772 48.526 9.A.84 14.105 10.19 20.98 Dividend Per Share (`)* 14 21.28 Capital Adequacy Ratio (%) (` in crore) N.A N.wef.53 (` in crore) N.A.A 1.21.A.368 14.742 1.414 12.49.03 46.A.337 1. N.37 130.109 39.541 6729 9121 9.432 10.097 14.119 2.77.211 17.59.765.44 12 13.951 16.30.45.414 12.177 63.080 22.45 1.69.671 32.362 1.748 20.05 20.03.716 1.81.798 34.59.082 32.59 47.68 0.23.362 1.617 12.09.526 43.57 2.12 (` in crore) N.700 other Assets (` in crore) 80.29.A 30.15.774 Net Profit (` in crore) 4.629 34.21.78 1.096.63 1.36 15.59.116 9.150 2.475 5.947 1.530 1.080 22.A N.336 31.A 1.698 80.35.05.519 15.27.224 17.04 49.77 9.46 Return on equity (%) 14.333 16.704 51.793 17.401 57.37.722 Borrowings (` in crore) 39.191 other’s (` in crore) 60.56 20.266 Total (` in crore) 5.69.915 95.321 25.70 267. 2014.82 2.740 13.53.22 20.736 13.211 17.258 Net Profit Before Taxes (` in crore) 7.33. N.882 Provisions for NPA (` in crore) 1. N.A.136 26.A.565 7.22.96 12.710 1.35.25 1.24.77 144.04 12.42.282 55.600.868 Tier II (%) 2.542 14.313 65.76 17.625 10.415 33.84 1.A N.790 2.75.A.72 2.94.448 12.18 49.49 9.37.108 17.A.12 20.063 Assets Investments (` in crore) 1.75.43 2.72 9.13 expenses to total Net Income) Profit Per employee (` in 000) 237 373 474 446 385 531 645 485 602 470 earnings Per Share (`)* 86.692 1.869 16.512 32.079 1.329 49.27.97 0.483 19.006 1.30 2.333 1.23 48.50.536 1.07 14.95.954 2.A N.89.265 11.24 17.54. N.84.015 56.200 34.519 1.565 7.17.19.025 1.48.43.6 9.17.A.4 3.501 2.31.917.31 210.41 (` in crore) N.92.926 14.878 3.87 3.416 1.A N.66.1 126.45.067.79 13.951 Return on Average Assets (%) 0.768 5.792 11.166 8.35.574 31.A N.891 13.404 96.43.647 12.035 Tier I (%) 9.601 3.569 1.149 1.05 194.14 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 Liabilities Capital (` in crore) 526 631 635 635 635 671 684 747 747 776 Reserves & Surplus (` in crore) 30.927 1.64. N.800 Basel-II (%) 14.526 9.736 13.908 26.148 8.393 90.62 143.5 29 30 30 35 41.362 42. The data is on `1 per share for 2014-15.547 1.174 19.757 Tier I (%) 9.88 0.914 7.933 10.901 82.873 23.181 13.579 10.72 1.71. N.49 11.98.79 9.975 1.231 10.131 2.12.75 1.62 52. 2015-16 and `10 per share for remaining year.5 30 3.A.42.04 0.A N. 29.604 29.85.55.200 1.18 20.291 44.058 17.10.001 2.439 14.60 SBI Share (Price on NSe) (`)* 994.71 0.63.404 7.984 State Bank of India | Annual Report 2015-16 operating Result (` in crore) 10.21 20.46.351 83.74 expenses to Income (%) (operating 54.12 3.432 10. 56.800 4.491 1.A.82 15.40.097 Advances (` in crore) 3.04.6 45.698 1.429 2.64.35 2.45.66.67.845 1.314 13.A.257 1.915 18.546 11.01 1.829 13.A N.92 (` in crore) N.17 7.042 83.55 12.35.876 Total(` incrore) 5.954 18.043 Tier II (%) 4.719 8.21 4.183 1.94 4.67 49.56 1.000 13.83.157 1.51 52.759 4. N.39 11. 22nd November.86 12.748 20.903 Basel-III (%) 12.A N.1 10.537 43.45 7. State Bank of India | Annual Report 2015-16 15 . Pushpendra Rai Director Nominated by GoI Director Nominated by GoI Director Nominated by GoI Ms. 2016 Smt. Urjit R. Gupta Managing Director Managing Director Managing Director Managing Director Shri Sanjiv Malhotra Shri M. DFS DG.Central Board of Directors as on 27th May. Patel Secretary. Kannan Shri Rajnish Kumar Shri P. D. Ahuja Dr. Arundhati Bhattacharya Chairman Shri B. Girish K. Amin Shareholder Director Shareholder Director Shareholder Director Shareholder Director Shri Tribhuwan Nath Chaturvedi Dr. G. Mallya Shri Sunil Mehta Shri Deepak I. RBI Director Nominated by GoI Director Nominated by GoI 16 State Bank of India | Annual Report 2015-16 . Anjuly Chib Duggal Dr. K. Sriram Shri V. Gupta Directors elected under Section 19(c) of SBI Act Shri Sanjiv Malhotra Shri M. Mallya Shri Sunil Mehta Shri Deepak I. Ahuja Dr. Pushpendra Rai Term: 3 years and eligible for re-appointment / re-nomination. subject to a maximum tenure of 6 years Director under Section 19(e) of SBI Act Ms.D. Girish K. Arundhati Bhattacharya Managing Directors Shri B.Chairman Smt.G. Amin Term: 3 years and eligible for re-election for further period of 3 years Maximum tenure: 6 years Directors under Section 19(d) of SBI Act Shri Tribhuwan Nath Chaturvedi Dr. Urjit R. Kannan Shri Rajnish Kumar Shri P. Sriram Shri V.K. Patel State Bank of India | Annual Report 2015-16 17 . Anjuly Chib Duggal Director under Section 19(f) of SBI Act Dr. Director -Member Corporate Social Responsibility Committee (CSR) Dr. Mallya. Pushpendra Rai. GOI Nominee – Member Shri M D. Amin. MD-A&S – Member (Ex-Officio) Shri Rajnish Kumar. MD-NBG – Member (Ex-Officio) Managing Directors. Shri Sunil Mehta. Director – Member Director nominated under Section 19(f) of the SBI Act Dr. MD-C&R – Member (Ex-Officio) Shri Sanjiv Malhotra.Member (Ex-Officio) MD-NBG – Member (Ex-Officio) Shri P. RBI Nominee – Member Shri Rajnish Kumar. Amin.Committees of the Board as on 27th May. Gupta.Mallya.Chairman Shri Sunil Mehta. MD-CBG – Member (Ex-Officio) – Smt. K. Dr. MD-C&R – Member Ms. Director – Member Shri Tribhuwan Nath Chaturvedi.G. Director – Member Shri B. Shri Sanjiv Malhotra.Kannan. MD-CBG – Member (Ex-Officio) – Dr.D. RBI Nominee – Member (Ex-Officio) Shri Deepak I.Ahuja. Sriram. Gupta. MD-CBG – Member Dr. Director – Member 18 State Bank of India | Annual Report 2015-16 . Mallya. K. MD-C&R – Member (Ex-Officio) Shri M. GOI Nominee – Member of the Committee Dr. Director. Director – Member Shri Rajnish Kumar and Shri P. Mallya. MD-NBG – Member Shri Rajnish Kumar.D. Director – Member Shri Deepak I. Director – Member Audit Committee of the Board (ACB) Shri Sunil Mehta. Mallya. Director– Chairman of the Committee Smt. Shri V.G. Director – Member Shri Tribhuwan Nath Chaturvedi. K. Sriram.D. Ahuja. Sriram. MD-CBG – Member (Ex-Officio) Director – Chairman of the Committee Shri P. Gupta. Amin. Gupta. Amin. Director – Member Risk Management Committee of the Board (RMCB) Shri Deepak I. Kannan. Director – Member Shri Sunil Mehta.G.Patel. 2016 Executive Committee of the Central Board (ECCB) Customer Service Committee of the Board (CSCB) Chairman Shri B. MD-CBG . Girish K. Anjuly Chib Duggal. Patel.D. Director – Member (Ex-Officio) Shri Sunil Mehta. Ahuja. Arundhati Bhattacharya . and all or any of the other Directors who are normally IT Strategy Committee of the Board (ITSC) residents or may for the time being be present at any place Shri Deepak I. K. Director – Member Board Committee to Monitor Stakeholders Relationship Committee (SRC) Recovery (BCMR) Shri M. Urjit R. Shri M. Director – Member Shri Deepak I. Urjit R. Director – Member Shri M. MD-NBG – Member Non-Co-operative Borrowers (Ex-Officio) – Chairman of the Committee Managing Director-CBG-Chairman of the Committee Shri P. MD-C&R – Member (Ex-Officio) Any two independent Directors of the Bank. Director – Member Shri M. Girish K. K. Gupta Shri Deepak I. Kannan. Arundhati Bhattacharya.G. Mallya.D. Pushpendra Rai. Member Dr. Shri B. Director-Member Shri V. Mallya. Anjuly Chib Duggal. Director – Member Shri Deepak I. MD-NBG – Member (Ex-Officio) Shri P. Director – Member Shri Sunil Mehta. GOI Nominee – Member (Ex-Officio) Special Committee of the Board for Monitoring of Large Value Frauds (SCBMF) Review Committee for Identification of Wilful Defaulters/ Shri Rajnish Kumar. Kannan. Director – Member Shri M. Anjuly Chib Duggal. Director – Member (Reserve Bank of India nominee). Director – Member Chairman of the Committee Shri P.D. MD-A&S . Shri B. Director – Member Shri Sunil Mehta. K. Girish K. Director – Member Shri B. Director – Member Shri B. Director – Member Shri V. Amin. Shri Sanjiv Malhotra.Member Shri V. Sriram. Gupta. viz. Director – Member Dr. Urjit R. Director – Member Dr. Pushpendra Rai. MD-C&R – Member (Ex-Officio) Remuneration Committee of the Board (RCB) Shri Sanjiv Malhotra. Sriram. Patel. Amin. Director – Chairman of the Committee within India where the meeting is held. Chairman of the Committee Shri Rajnish Kumar. Sriram. MD-A&S – Member (Ex-Officio) – Chairman Ms. Director – Member Shri Tribhuwan Nath Chaturvedi. Director – Member Ms. Amin. Members of Local Boards. other than Managing Director - National Banking Group .N. Mallya* Shri K. Girish K. Rajni Mishra Mumbai Chief General Manager (Ex-Officio) Shri Deepankar Bose Chief General Manager (Ex-Officio) Shri Sanjiv Malhotra* Bhopal Shri M.Ajit Shri Sunil Mehta* Chief General Manager (Ex-Officio) Shri Deepak I.V.G.Nominated by Chairman in terms of Section 21(1)(a) of SBI Act.L.1955 as on 27th May.Murty Chief General Manager (Ex-Officio) Chennai Shri B.T. State Bank of India | Annual Report 2015-16 19 . Amin* Shri Anil Garg Delhi Bhubaneswar Shri Pallav Mohapatra Shri B.V.Ranganath Chief General Manager (Ex-Officio) Shri A. 2016 Ahmedabad Lucknow Shri Sanjiv Nautiyal Shri Gautam Sengupta Chief General Manager (Ex-Officio) Chief General Manager (Ex-Officio) Shri Munish Kumar Jain Bangalore Smt.Reddy Chief General Manager (Ex-Officio) Chief General Manager (Ex-Officio) Shri Tribhuwan Nath Chaturvedi* Shri Sarat Chandra Bhadra Shri Dinesh Kumar Dr. Ahuja* Chandigarh Dr.S. Gopalakrishnan Kolkata Shri Prashant Kumar Chief General Manager (Ex-Officio) *Directors on the Central Board nominated on the Local Boards as per Section 21(1) (b) of SBI Act.D.V.Pushpendra Rai* Shri Anil Kishora Chief General Manager (Ex-Officio) North Eastern Shri Anil Arora Shri P.Ramesh Babu Patna Chief General Manager (Ex-Officio) Shri Ajit Sood Chief General Manager (Ex-Officio) Hyderabad Shri Hardayal Prasad Kerala Chief General Manager (Ex-Officio) Shri Badal Chandra Das Shri M. Packirisamy Deputy Managing Director (Mid Corporate Group) Shri Sekar Karnam DMD & Chief Credit Officer Smt Manju Agarwal Deputy Managing Director (Corporate Strategy and New Businesses) 20 State Bank of India | Annual Report 2015-16 . Krishnamachari Deputy Managing Director & Chief Operating Officer Shri Ashwini Mehra Deputy Managing Director & Corporate Development Officer Shri Sunil Srivastava Deputy Managing Director (Corporate Accounts Group) Shri Siddhartha Sengupta Deputy Managing Director (International Banking Group) Smt Anshula Kant Deputy Managing Director & Chief Financial Officer Dr M. S. 2016 Smt Arundhati Bhattacharya Chairman Shri B.K. Sriram Managing Director (Corporate Banking Group) Shri V.G. Vaidyan Deputy Managing Director (Stressed Assets Management Group) Shri Sasikumar C.R. Deputy Managing Director (Inspection and Management Audit) Shri J. Sastry Deputy Managing Director & Chief Risk Officer Shri Mrutyunjay Mahapatra Deputy Managing Director & Chief Information Officer Dr M. Gupta Managing Director (Compliance & Risk) Shri N. Kannan Managing Director (Associates & Subsidiaries) Shri Rajnish Kumar Managing Director (National Banking Group) Shri P.G.Members of Central Management Committee as on 27th May. New Delhi M/s S R R K Sharma Associates Bangalore M/s V Sankar Aiyar & Co. New Delhi M/s Amit Ray & Co. Kolkata M/s Bansal & Co. Bhopal M/s Mittal Gupta & Co. Kolkata M/s Manubhai & Shah LLP Ahmedabad M/s M. Kolkata M/s B Chhawchharia & Co. Allahabad M/s S L Chhajed & Co. Bhaskara Rao & Co.Bank’s Auditors M/s Varma & Varma Kochi M/s Mehra Goel & Co. Mumbai M/s S N Mukherji & Co. Hyderabad M/s GSA & Associates New Delhi M/s Chatterjee & Co. Kanpur State Bank of India | Annual Report 2015-16 21 . 22 State Bank of India | Annual Report 2015-16 . Details of the achievements and initiatives taken by your Bank are provided in the enclosed Annual Report for the year 2015-16.The Chairman’s Message It gives me great pleasure to place before you the highlights of your Bank’s performance during the financial year 2015-16. 69% will support growth momentum going forward. increased moderately. Forecast of above normal monsoon this year at 106% of Long Period Average Further. to `1. the loans to large corporates increased by 16. The higher growth of your Bank’s deposits compared year 2015-16. GDP growth to `3. ECONOMIC OVERVIEW Furthermore. The aggregate share of both of these State Bank of India | Annual Report 2015-16 23 . your Bank retained its a healthy 7. `2.6% in FY16 compared to 7. the economy grew market share of 25. the world economy is segment remained significantly benign supporting the Bank’s poised to grow at 3.1% and advanced economies are in FY16 from `32. an improvement of 96 bps from 42.52% amongst ASCB.9%. However.76.1% in FY15.89.000 crore Global growth continued to remain sluggish in the first quarter mark.30.06%. aggregate deposits rose by 9. the deposits in Savings Bank grew by 13.76% to 2015-16.09. Looking ahead. In addition to that. with economic growth easing to 3. to All Scheduled Commercial Banks’ (ASCB) growth. Eurozone grew at the same rate as the previous quarter and pushed up the market share by 34 bps to 16. While the growth in advanced economies to 43.2% in FY16 against 7. YOUR BANK’S PERFORMANCE It gives me great pleasure to place before you the highlights Deposits of your Bank’s performance during the financial year In the year 2015-16. auto Growth in emerging markets and developing economies is loans registered a healthy growth of 19.768 crore in FY16.2% in 2016 and pick up to 3.57% in March 2016.5% in 2017. This growth can largely be attributed to On the external front. advances to SME grew by 4. In FY16.026 crore in FY16 from the previous year level of is expected to be better at 7. improvement in current account deficit capitalizing on refinancing opportunities and judiciously has persisted and narrowed to 1. Details of the achievements and initiatives taken by `17. On a positive note.549 crore expected to come in at 4. and grew at 13. persistent slowdown in China.17% Economies’ growth decelerated amidst subdued growth to `5. this growth was majorly driven by growth in The year 2015 was another difficult year for the global personal segment deposits. strategy of growing more aggressively here.00.44% stay within comfortable range of 1.35. By clocking a robust growth of 20.149 crore in FY15 and home loans grew projected to grow at 1.59. position as the country’s largest home loan provider with a While.237 crore in FY15. at 7. retail advances firming up of oil prices and modest increase in commodity remained the most impressive sector contributing significantly prices have provided support to global economic activity.90.8% in FY17 (SBI projections).977 crore.722 crore from the previous year level of `15.84%.2% in the last fiscal.81. Low oil. Advances The Advances of your Bank crossed the `15. Russia and 9. Weak business environment in the March 2016 from the previous year level of `13. thanks to the decline in trade Bank remained cautious while lending to mid-corporate and deficit.793 your Bank are provided in the enclosed Annual Report for the crore.88% last year. pushed up the market share by 57 bps to 17.0%-1. Even the The higher growth of our advances than the banking industry. more specifically by growth in economy.29. the recent 16.67% to `1. US led to a near stagnation in growth dynamics. Your Bank’s home loan portfolio constitutes nearly Against the backdrop of weak global economy.81.30% in 2015- Japan continues to show weak growth.Dear Shareholders.93% to `2. Within retail. The Bank improved its CASA ratio IMF estimates. your from 1. commodity prices and tighter financial conditions kept the risks elevated.04% to the level of `15.62% to reach `1.3% of GDP in Q3 FY16 lending to investment grade projects.626 crore. Delinquencies in the According to the latest IMF projections.91% to `38.564 crore and current account clocked a growth of performance in the bigger economies of Brazil.500 crore by of this calendar year. by 19.536 crore and mid-corporate portfolio increased by 6. the Emerging Market and Developing Meanwhile. to increase in overall loan disbursements.5% even in FY17.32.5% of GDP in Q3 FY15.35.1% as per low cost CASA deposits. on Gross Value Added (GVA) basis. India grew at 60% of retail loans.424 crore. current account deficit will continue to SME segments.552 crore in FY16 from `1. To provide an additional Standardised Single Window Operator (SWO) and convenient service channel to HNIs besides the branch. in case of agriculture credit. Technology In addition. Your Bank has been putting significant efforts to is currently at 198 and spread across 37 countries in all the upgrade its technology to the best in class. your Service Desks for non-cash transactions. your Bank has rolled around 38% of total Debit Card penetration in the country. reduction in wait times and overall reduction of the banked population have their accounts with SBI. 4 Indian Visa Application of State Bank Debit Cards with a matching cash-dispensing Centres in Bangladesh and upgraded Seoul Representative infrastructure closer to the doorsteps of the customers. better crowd management through real time monitoring and Branch choreography to tackle peak level rush. Finally. of which 65% are in rural and semi-urban areas. During 2015-16. registered mobile number. You will be glad to know that 20% management. hours from 8 a. Branch Redesign your Bank continues to be the market leader in Debit Card With an aim at improved customer service.25. This offers personalised services through process.784. better crowd issuance in the country.The Chairman’s Message segments continued to decline to 27% in FY16 compared to Provision of all alternate channel machines viz. in its pursuit towards becoming the Banker to International Bank. 20 other offices.02 lakh. your Bank has opened become possible largely because of the deep penetration 2 new branches in United Kingdom. on an on-going continents. out Customer Experience Excellence Project (CEEP). as of March 2016. However. thereby taking experience is as under: the numbers to over 3. Bank continued to surpass the target set by the Government. With over 23 crore Debit Cards as on 31st March 2016. Bank launched a Priority Banking Centre at Bengaluru on 16th Account opening Cell to streamline the account opening November. During FY16. The number of foreign offices of the Bank the Nation. your Bank has registered a growth of 56% in terms of number of transactions and 60% in value of transactions. risk / Recycler. ATM. The offices include 55 Branches. mitigated products continued to clock healthy growth. which was accelerated during FY16. CDM 30% at the end of FY15.387 crore loans as against the scheduled (QMS) and Customer Feedback TAB at the branch for target of `89. Provision of integrated Queue Management System disbursing `1. 2015. the branch network of customers to Alternate Channels.m. 2674 branches were rolled out In sync with the focus of Government of India to create a under CEEP during FY16 and the total number of branches digital economy. your Bank also targets the local populace in Your Bank realised early on the need for doing banking the overseas geographies in line with its vision to become a truly smart way. Automatic Cheque Drop Box Machine (ACDM). your Bank has strengthened its Debit Card under CEEP is at 3006 as on March 2016. Branch Expansion Grahak Mitra to facilitate issue of tokens and migration of With the opening of 451 new branches. under SME segment.70% of PoS terminals. basis and the capability to offer near JIT (Just in Time) service 7 Representative Offices and additional 113 offices of 8 delivery environment across its delivery channels. your specified Branches which have adequate footfalls.781 crore for FY16. enabling valued customers to Standardised process for sales management and cross conduct all non-cash transactions during extended business sell. with in the service time (processing time). thereby SWAYAM Bar coded Passbook Printer and Internet increasing their share in the SME portfolio from 36% in FY15 enabled PC with printer for online opening of accounts at to 41% in FY16.m. 24 State Bank of India | Annual Report 2015-16 . A brief of the acceptance infrastructure by giving a vigorous thrust on initiatives introduced under CEEP to improve the customer installation of Point of Sale (PoS) terminals. Office into a full-fledged branch. up by 50% over last year with a market share of 21. to 8 p. your Bank reached 16. This could Foreign Subsidiaries. 000 SWAYAMs maintain a healthy NIM of 3. Recyclers as on March. group of Gen Y and Smart Affluent. This cost-effective channel has enabled “sbiINTOUCH” branches. Firstly.951 crore in FY16.27%.192 crore. The interest income growth focused on convenience and security. in Q4 FY15 to `14. the Operating Profit of the Bank increased by 11. front loading of Bank launched revolutionary mobile banking applications for provisioning on account of RBI’s Asset Quality Review (AQR) SME & Corporate customers. banks: 5.000 ATMs including Kiosks. PayPal has also been added as a new channel in rooms. your Bank replaced all magnetic stripe cards to print their passbooks on their own using barcode technology. the Bank receives more than 4 lakh calls on an average per day. the erosion in profitability was arrested to largest ATM networks in the world with more than 59. terminal security. basis points (bps) correction in the base rate which impacted offers low cost. Using these kiosks.224 crore Your Bank along with its Associate Banks has one of the in FY16.768) to provide customers 24x7 cash withdrawal and cash deposit facilities. Profitability Your Bank is the market leader (35.158 crore in FY16. Advanced Anti Skimming More than 2 crore passbooks have been printed through devices. “State Bank Anywhere Saral” & during Q3 & Q4 also adversely impacted the Net Profit of the “State Bank Anywhere Corporate”. the moderated to 2. achieving with state-of-the-art devices/kiosks to cater to the target 38% growth over the previous year.84%. peace and confidence to and onsite/offsite lobbies. These have its own payment aggregator services. The Bank continued to Your Bank has rolled out more than 6.760 crore In line with our endeavour of being ‘Banker to Digital India’. During the year. However. on SBI Bank. out of zone concepts these Kiosks.576 crore in has introduced and installed 4. your Bank is the first and only Bank to through hi-definition video conference are provided for. your Bank has launched corporate customers. 115 sbiINTOUCH Branches were opened across the SBIePay. Customers transact on a self-service mode. but not the least. information and interaction stations and advisory customers. your Bank The Non-interest income increased from `22. As a Bank and a Branches provide a consistent experience over omni channels Payment aggregator. Thus. under pressure due to two reasons.96% during FY16.5% market share in Profitability during the financial year was expected to be number of transactions) for mobile banking services in India. EMV cum Magnetic Stripe Cards. The total consolidated profit of the Group also declined by 28. Quick (missed call banking). As a new initiative.73% growth. Your Bank’s online banking platform provides robust and customer friendly net banking services to its retail and As all of you know that in FY15.22% from `12. Both onsite and remote expert assistance Last.953 Recyclers (with associate FY15 to `28. country covering 70 districts to take the digital footprint of your Bank forward. a 24. Cash Deposit Machines and some extent by robust performance in Non-interest income.1% to `12.41% to `43. real time banking services the interest income of the Bank. respectively.To provide best of security.102 update and speedy disposal of applications. crore in FY15 to `9. there was a 70 The Bank’s mobile banking service `State Bank Freedom`. These branches are well equipped more than 124 crore transactions during FY16. the a facility of Online Application and Tracking for Loans was Operating Profit increased by 9. The fall in profitability did not adversely impact Net Interest Rate Margin (NIM) of the Bank.05% from `13. on a standalone basis. For the financial year. 2016. SBIePay has already partnered with 41 and comprise transaction processing stations (self-service banks for providing seamless Internet Banking options to the zone). Net provided for convenience of customers facilitating status profit on the other hand declined by 24. for Q4 FY16. SMS alerts.258 crore. customers can customers. and pin based debit card authorisation have been implemented in all geographies. Also. The Bank was able to (Barcode based Passbook Printing Kiosks) at its branches maintain this margin because of 96 bps improvement in CASA ratio to 43. Secondly. round-the-clock. State Bank of India | Annual Report 2015-16 25 . The Chairman’s Message Asset quality Dividend As a part of the RBI’s AQR. the Bank raised `10. your Bank has taken went up by 169 bps at 3.383 crore loans.00% in March 15. which is FY16. Capital Global Ed-Vantage Scheme with limits upto `1.12% in a number of new initiatives in the FY16. platforms has been designed. loans also declined from 8. Asset quality improved in the Non-Corporate Book Home Loan (Home Loan with Flexible Repayment option) with Gross NPA Ratio in Personal Segment Loans declining for the individuals and Corporate Home Loan (Home Loan from 0. SME.81% in FY16 as against 2.5 crore has Adequacy Ratio of the Bank under Basel III improved to been launched. Gross NPA Ratio in SME loans remained stable at aimed at revamping of Home Loan marketing and processing around 7. which would enable customers to book forex rates to hedge During FY16.90% in FY15 to 6. Project Shikhar was rolled out Revaluation of Real Estate Assets is yet to be reckoned to gain first mover advantage in the ecommerce space.8%. This exercise resulted in an increase in New Initiatives Non-Performing Asset (NPA) provision by `9076 Crore In FY16. rural business etc.500 crore through Tier II issuance. The Bank on its own . the Bank has utilised the Counter Cyclical Provisioning Buffer (CCPB) of `1149 In line with our vision statement to keep “Customer first”.93% in their employees / directors). least one Home Loan proposal. State Bank Rewardz to reward our customers for the unstinted trust reposed in us across a wide range of services availed by The Gross NPA therefore went up by 225 bps at 6. for students going abroad for higher studies. SBI shocks and maintain its future growth trajectory. Gross NPA Ratio in to Corporates / Institutions for creating housing stock for Agri.12% in March 16 from 12.93% in FY15 to 0.5 lakh home loans proposals. I am happy to announce that the Board of reclassify and/or beef up its provisioning in respect of Directors of your Bank has declared a dividend of `2.also reviewed the loan book on an account-by- account basis. auto loans. (ii) FlexiPay book. Some of them FY15. amounting to over `32. FY16 as against 4. during the year. the Bank was advised to For the year FY16. Furthermore. On SME business front.7%. 26 State Bank of India | Annual Report 2015-16 . infrastructure. your Bank has remained well capitalised to absorb future Further. and (iii) Project TATkal.000 crore to optimise its SME” for financing merchants selling through e-commerce available capital. 13.000 crore.50% in them. directive . in capital adequacy calculations.40%. Notwithstanding the secular rise in provisions.000 staff members have mobilized over Capital structure 1.500 crore.18% to encourage each and every member of our staff to market at 6. the Net Impaired Asset Ratio (Net NPA+ Further. there are: (i) Holiday Savings Account (with online end to end were notable improvements in some pockets of the loan capabilities) in partnership with Thomas Cook. Over and above the loan loss initiatives in each and every business segment like home provisions held on NPAs.984 crore. On the whole. the Government infused `5393 crore while their exposure in foreign currency.beyond the RBI share of face value of Re 1 each. Griha Tara Campaign was launched to Net Std Restructured) increased marginally from 6. You will be happy to know that more than 75.75% in FY16. your Bank has taken a number of new business in FY16 to `26. the Bank is working on various initiatives estimated increase in CET1 is more than `10.60 per certain advances. The to pioneer ecosystem lending through partnerships with new Bank may also consider divestment of non-core investments business models. the Bank also has `3.25% in FY15. The provision coverage ratio now stands at 60. Despite the challenges faced during the last financial year. Real Estate Revaluation Under this project. Your Bank has also launched “SBI eforex’’ platform. A pioneering innovative product “e-Smart / subsidiaries to add more than `3. as additional provision. Net NPA on the other hand In the personal banking business. crore for making specific provisions for NPAs during your Bank launched Enterprise Wide Loyalty Programme - this year. 2015. SBI Holidays Government`s nod to start negotiating the merger of our five and give direct access to various mobile apps viz. SBI subsidiary banks and Bharatiya Mahila Bank with your bank. SBI Buddy. in an objective and transparent manner.4% growth in GWP YOY against an industry of return on capital. This and Payment Services (Pvt. but your Bank shall introduced certain innovative methods which has given first be rolling it out to NRIs and Corporates/Trusts shortly. interest certificate on Housing Loan and Education Loan securely on his registered email address 24 x 7. SBI Global Factors Limited registered PAT of `0. `267 crore for FY15. Freedom. The entire system The average Assets Under Management of the company is IT driven and all the employees of the Bank have been during FY16 stood at `1. will also be able to lodge and track their complaints through along with its 5 subsidiaries posted a PAT of `279 crore this App. as the 15% and posted net profit of `284 crore for FY 16 as against token is generated before the customer reaches the Branch. was 3. Your Bank has designed. crore in FY16. Your Bank has resident individual customers are eligible. the youth of the country. Their net profit stood at `1. amongst Standalone PDs as on 31st March. SBI DFHI Ltd posted Net hour scheme in a limited scale where the employee is free to Profit of `72 crore in FY16. SBI Anywhere. etc.640 crore. the company is On HR front. Mobile Banking. only For resolution/recoveries of NPAs. Customers Of the non-banking subsidiaries. advances.30% and obtain commonly sought information. At present. buddy app. With this properties on Pan-India basis. The App will provide information about March 2016. your Bank has introduced Risk Based growth of 13.89%. SBI Life Insurance Company Limited witnessed a PAT of `861 crore in FY16 against `820 crore in FY15.) Ltd has grown its card base by reduces waiting time of customers and reduces crowds. A Such a merger will make your bank more efficient. arranging Mega e-Auction of large number of tech savvy generation. during FY16. Bank`s deposits. Central Board has recently passed a resolution to seek the EMI calculation.37% on grounds of looking after family and health.46% amongst all market participants and 20. This is a Self-Service Associates & Subsidiaries App enabling SBI customers to avail of a range of services The five Associate Banks of SBI had a Market share of 5. 2016 were State Bank of India | Annual Report 2015-16 27 . In terms of spends.781 crore with market share of assigned KRAs and almost 90% of the positions have been 7. mover advantage to the Bank in areas like early warning State Bank Buddy. The total “Assets Under Management” of Budgeting (RBB). ATM Locations. online shopping and guarantors and arranging for attachment of properties before ticketing etc. initiation of criminal actions. Another Mobile App “State Bank No Queue” has been The ‘Assets Under Management’ of SBI Life recorded a YOY launched. Your Bank has launched a Mobile App ‘State Bank Samadhaan’ on Google Play Store. is the mobile wallet designed for the system. pay utility bills. Additionally. your Bank has introduced flexi-timing / flexi. SBI Quick. developed and launched “SBI Adjusted Return on Capital (RAROC) framework both at Exclusif”. Your Bank has implemented the Risk SBI Pension Funds Pvt. SBI General Insurance Company Limited In order to focus on capital conservation and maximization recorded 29. SBI Cards for availing select Banking services at select Branches. this enables customers to self-generate e-tokens growth of 13% to reach `83. the user can do a number of online transactions identification of un-encumbered properties of the borrowers / like mobile recharge. The market share of SBI DFHI select own work hours within limits laid by the management.33% in advances approximately as on 31st the branch. without visiting in deposits and 5. SBI Branch. ranked 4th with 12% market share.429 crore in FY16. SBI the Bank has implemented a new system of performance Funds Management Private Limited posted a PAT of `165 appraisal (Career Development System-CDS) of employees crore in FY16 as against `163 crore earned during FY15. derive unique feature of the App is that it will enable any SBI the benefit of all synergies and improve its dominance in the customer to get on-demand his statement of account and banking space. a unique suite of Wealth Management services customer and portfolio level.06. (WMS) for its high net worth customers. SBI Capital Markets Limited. Internet Banking. Ltd as on 31st March.8%.. the court.86 made budgetary or measurable. Locally (subsidiary). resolution of stressed assets is expected to become more systematic and timely. and this is evident from the number of awards won by the Bank in the technology space. your the eighth most popular online banking site. In a survey conducted by underprivileged members of the society to make sustainable Digital market intelligence firm. These six goals were: NPA by 7th India Pride Awards. New York for the fourth time in a row. I had Company and Best Central PSU award for financial services set six strategic goals for SBI. when I took charge as Chairman. one of which was Most Trusted Brand in amongst Pension Fund Managers in terms of AUM in both Credit Cards category by Reader’s Digest Customer Survey. of institutional intervention has been addressed. risk management.com’ is the third most visited site after IRCTC Act. some of which are Best Analytics Corporate Social Responsibility Award by Finnoviti. as The Best Trade Finance Bank-India by Global Finance Magazine. mention a few. The thrust on technology has paid off Nielsen Survey 2015 for the fifth consecutive year. non-interest income and leveraging technology. The Company maintained lead position various awards. CIBIL Data Quality Award 2016 for Best Data believe that we owe a solemn duty to the less fortunate and Quality in Public Sector Banks. SBI Foundation would support pooling of the CSR and Flipkart. SimilarWeb for online banking social change in their lives. was ranked 5th in Best Asset quality pressures however accelerated during this year Mid-Size Indian Banks category by Business Today. the CSR spend of your Bank for FY16 stood at was also designated the Best Large Bank and Banker of the `143. Brand Equity and received by your Bank. cost control. declining commodity Bank of Hyderabad was awarded Second Best Public Sector prices and two successive drought years. Your Bank Further. IDRBT Banking Technology Excellence Your bank has been a pioneer in the space of Corporate Social Awards for Electronic Payment Systems and Managing IT Responsibility (CSR) in the Indian Banking ecosystem. 2013. where our Year by Business World. With the passage of Bank by Kerala Bankers club. State Bank of Bikaner & Jaipur. Your Bank was also the Way Forward proud recipient of Hellen Keller Awards 2015 for Role Model In October 2013. SBI Cards & Payments received in March 2015.407 crore On the Subsidiary front. registered under Section 8 of the Companies also ‘Onlinesbi. The Associates and Subsidiaries of your Bank have also been As I look back today. 2015 a missing link Winner for MSME Banking Excellence Awards-2015. reduction. State Bank of Travancore won the Commercial Courts. dedicated funds of the entire State Bank Group under one umbrella and direct these resources towards comprehensive Besides the technology awards. SBI Life was adjudged the Best Life Insurance Company (Private Sector) at the Lokmat BFSI Awards. ‘Onlinesbi. a Not-for-Profit company million average monthly visits in Jan’15-Jan’16 period. improving delivery standards. recognized SBI’s contribution for the PAHAL (DBTL) Scheme for which SBI is the sole sponsor.92 crore. registering 846. Appellate Division of High Courts Act. 2015 by World Recognition & Awards HRD Congress. SBI has also been adjudged CSR activities aligned with the Group’s Vision. which will speed up the recovery process. Government and Private Sectors. To strengthen the State Bank and finance sites across 200 countries.com’ was Group’s CSR activities and make it more sustainable. To continued from last year on all fronts.019 crore (YOY growth of 48%) against `31. featured in India’s Top 500 Companies 2015. State due to continued stress in the economy. It was also the Most Trusted Private Life I am proud to share with you the details of various awards Insurance Brand by The Economic Times. 28 State Bank of India | Annual Report 2015-16 . Also with the passage of the Bankruptcy Law. This is the fourth successive year. We Infrastructure. significant tangible progress has been winners of many prestigious awards throughout the year.6 Bank has formed SBI Foundation. Commercial Division and Commercial CSR & Business Responsibility Award for Emerging Bank.The Chairman’s Message `46. The Guiness Book of World Records CSR spend has been more than `100 crore. I am quite confident that our efforts have been timely executed and well received by our customers. attract savvier. The new sectors include Costal Shipping. On the technology front. The contours of banking sector are changing in line with the In the coming year. we aim to build upon this encouraging aspirations of young India that is becoming more technology digital journey. The biggest gain from technological innovation oriented. Offshore Wind Energy.Bank’s progress under Basel III transition is on schedule. The Government has growth. They will strength and capabilities. will continue to diversify our income sources. customers for their valuable support therefore migrate to banks that can provide this convenience. The Bank`s performance on non-interest income front embarked on promoting many new sectors with an eye has been fairly satisfactory during this financial year and we on the future. Defence Manufacturing. Younger customers and the “mass affluent” will I thank all our shareholders for their continued faith in our want the convenience provided by digital banking. Yours sincerely. and trust and our employees for their tireless efforts towards achieving our goals. Railways and Affordable Housing. FY17 is expected to be more promising than the previous Bank is striving to control costs by improving and digitizing year primarily because a regime of clear and stable policy processes and delivery without compromising on future environment is now evidently visible. (Arundhati Bhattacharya) State Bank of India | Annual Report 2015-16 29 . The investments in digital banking by Your Bank will for Your Bank is that it will improve customer retention and help pay rich dividends once issues of asset quality are sorted out. higher income and potentially more profitable customers. This growth Electricity generation has remained constraints and weak external demand is primarily driven by growth in services resilient and is expected to sustain may put downward pressure on (8.6% in 2015. The spatial growth falling to 1.3% in FY14.02 million tonnes during FY15. equity prices and currency market East monsoon. economic growth in the prices in EMEs and declining prices in Nadu. in FY16). increase in financial volatility since 1999 (when IMD predicted in 2015. Hence. growth in emerging market Despite all the headwinds.1% in China. emerging economies.6% in FY14.9% for the whole year.2% could not sustain the surge in Oct’15 amidst sluggish growth in China. The economies. Rabi foodgrains developments recently. As far as financial volatility is concerned.Directors’ Report Including Management Discussion and Analysis I. both economies (EMEs) has remained tepid domestic and external. The third advance estimates of the with underperformance of the services the role of emerging markets has Ministry of Agriculture indicate that sector in the Eurozone and UK and increased with enhanced spill overs despite low reservoir levels. relatively weak overseas demand taking a toll on from emerging markets to the global warmer winter and a deficient North- German factory orders. It is interesting to note that leading to a slow global growth of 3. The Euro pressure on trade dynamics. Scenario For FY17. 30 State Bank of India | Annual Report 2015-16 . while that in emerging and with moderate import demand from monsoon will be normal to excess the developing world has decelerated.1% led by decline in manufacturing. but domestic in FY15 and 6.1% in the last quarter beginning in 2016. There is a 94% probability that stagnated. Going forward. India’s Economic of 252.10 million tonnes. months. Meanwhile.2% in FY16 compared to 7. The in FY15 and 6. North-East India driven mainly by private consumption. divergent trends are receive good rainfall. rainfall. The decline recent firming up of commodity prices Value Added (GVA) basis.4% in Q4 2015 and large foreign debts may put downward distribution of monsoon will also be 1. particularly Tamil However. Economic Backdrop and Banking Environment Global Economic Global trade witnessed a sub 3% growth in 2015 for the fourth consecutive year After two successive years of deficit Scenario with emerging and developing countries monsoons.4% its performance backed by thermal growth dynamics. visible with accelerating consumer and South-East India. the Indian Industrial output as measured by the in 2015 at 4.23 million tonnes will This in turn has pressured the monetary be marginally higher over the production authorities to adopt negative interest rates in January this year. market sentiment shortfall in Kharif output. the trade Long Period Average (LPA) will bring growth in advanced economies has figures will remain sluggish in 2016 cheer.5% for full year 2015) despite has revived considerably in the recent total foodgrains production during FY16 active intervention of the Government. Meanwhile.9% in FY16) and industry (7. The disappointing situation persists in 2016. may get slightly less than normal region has remained unchanged at advanced countries. On Gross and declined after that. developed world.6% in the last three quarters. The US economy continues and adverse exchange rate movements 108% rainfall) this is the highest ever to grow below potential with GDP of more vulnerable countries with rainfall projection by IMD. again inflation front. 1. the prediction of above The world economy has passed suffering more than the advanced normal monsoon this year at 106% of through yet another difficult year.0% with Brazil and Russia economy remains in a sweet spot and Index of Industrial Production (IIP) decelerating more than expected grew by 7. Government has set the target of 270. The good thing production increased over levels a year Japan continues to stutter with economic is that after witnessing a turbulent ago and even compensated for the contraction of -1. the economy in IIP during recent months is mainly will support commodity exporting grew by 7. estimated at 252. the of 2015 (0.6% in FY16 compared to 7. slowdown this year. On the fair with drought-hit states also likely to Area expanded at 1. 11 Payment billion (1. The sharp decline in Meanwhile. The 2 universal primarily on account of a lower trade segment. fuel prices has led to negative WPI.3% to $379. licences (2 universal banks. Overall. territory for the entire fiscal. out of which SBI alone has enrolled WPI was -2. aggregate All platform.7%.7% of GDP) in Q2 lending during the financial year has banking facilities to the unbanked FY16. which expect this to be transitory and seasonal. helped credit demand to pick up in H2 To further increase the penetration of touching the highest growth of 11. banking business turned out a mobilisation at this time relative to past mixed bag. YoY credit grew at a has issued a total of 23 new banking account deficit (CAD) narrowed to $7. in a move to and variable rate repo auctions. stress in digital India mission. by FY15. However. and also banks have started their operation in deficit due to decline in both exports Mudra.0% in & 50 bps in two tranches in Jun’15 and amounts through these accounts. Apart from CLAB. but we rates in the range of 55-70 bps. which had Sep’16. the current Feb’16. however increased in April 2016.600 crore deposits. in line with the Government’s years. both Wholesale Price Index FY16 compared to `8. in absolute amount.1 higher rate of 11. However.8% to a five-year low of $261. due to a number of reasons Further.3% in FY16 (18 March. The contraction in CAD was been mostly to the personal loan sections of the people.7% of the ASCB April 2016. both WPI and CPI. much ahead of the deadline of dipped 15. got in principle approval are now in usual accumulation of cash balances by the process of getting formal licences from RBI. The incremental in 2015.4 lakh crore in under PMJDY have been continuously Inflation. Inflation.5 billion. The muted deposit growth may Mar’16. zero balance accounts deposits grew by `8. positive note. pick-up in bank credit and flatter deposit In FY16. For the entire fiscal. increasing outward 12.1% for FY15. FY15. Taking this initiative forward. leaving tightened since mid-Dec’15. Mudra loans now India’s first small finance bank (SFB) in negative territory. who have received RBI’s approval to billion due to fragile global demand and start SFBs are preparing to launch by low commodity prices. Jan Dhan Yojna (PMJDY). under the Jan Surakshsa remained under control throughout FY16.6% in financial services in the country. stretched further by the larger-than.2 lakh crore in declining from 45% in Sep’15 to 27% in (WPI) and Consumer Price Index (CPI).9% growth in Meanwhile. The investment FY16 (for the fortnight ended 18 March.0%.6 crore of applicants cumulatively. 2015) growth of far with `36.7 billion (1. 10. On a stalled projects has started to decline. For FY16. RBI undertook liquidity like weak economic activity. banks have enrolled a total of Even WPI inflation remained in negative in the system.3% of GDP) in Q3 FY16 from 2016). The 11 payment banks which a trade deficit of $118. a with the venture. Despite relatively products and services on the online liquidity being injected through OMOs high real interest rates. banks have climate in the country has improved 2016). compared to FY15 (20 March Banks and 10 Small Finance Banks) $7. Interestingly. CPI the range of 9-10% in H1FY16. be due to rise in currency circulation scheme. banks also reduced their base using the Aadhaar platform. 25 channels to disburse the subsidy 4.9% (average) in FY16 from 6. reports state that 4 Banking the Government.supplies. the others fell 15. under the Pradhan Mantri continue to gain. The average remittances and high base effect. in a period of one 2015 and Capital Local Area Bank and imports. with an objective to provide and $8. most banks are operations to quell these pressures and certain sectors and consequent lower endeavouring to make available their supplemented normal operations with credit demand. After Government has been using the banking inflation also declined significantly to the rate cut by RBI (75 bps in total. exports account for around 1. with the thrust of the Government (CLAB) has launched its operations as exports and imports growth were in and efforts by banks. while consumer durables deposits registered a 9. RBI On the external front.7 billion (1. However. both year.5% for FY16 compared to 2.3 crore accounts for the year ending 2. Schedulad Commercial Bank (ASCB) a step closer towards becoming a less State Bank of India | Annual Report 2015-16 31 . especially housing.6 billion. Imports also Liquidity conditions.51 crore of accounts so as the stock of stranded investment in ended 20 March. compared to FY15 (fortnight opened 21.1 loan portfolio. unusually heightened of these have decided not to proceed Environment and persistent demand for currency. Further. Apart from this. credit growth remained in Mar’16.5% of GDP) in Q3 FY15 2015) growth of 9. were Apr’17. has Sep’15). which had disruptive effect on in neutral mode’. Small and The signs of rising stress in the banking Weather related risk is now expected Medium Enterprises’. We do not see any material the larger corporate lenders.e. Banks are also expected to interface (UPI). Global economic growth is of The Real Estate (Regulation and slowly inching towards recovery. Due number of opportunities for banks and to elevated NPAs. These departure from either of the policy measures are likely to have a positive measures will open up a significant stance in the current fiscal. National Payments at the same time it will significantly expected to further bring down the cost Corporation of India (NPCI) with RBI improve customer experience. which is banking and delivery of services. as to be contained. Banks have technology is continuously creating moved to the marginal cost-based new opportunities in the banking space.f. The policy space as much of the stress has already been a result has widened and Government Overall.Directors’ Report cash economy. In a similar vein. but 32 State Bank of India | Annual Report 2015-16 . Small and Medium at a time when mobile banking is Enterprises. the Ministry of Micro. 01 Apr’16. which will lead to a more vibrant Corporate Bond of UPI is expected to have a significant increase the probability of better rains market in the country. system appear to have plateaued. Digital Development) Bill. These trends will get challenging yet exciting for a number a further thrust due to the passage of reasons. has also picking up. banks have declined as a result of higher provisioning. use of a single identifier which will act global growth recovery are abating as a virtual address and eliminate the and El Nino conditions are expected to The passage of the Bankruptcy Law is need to exchange sensitive information wither by the end of 2016. Rehabilitation of Micro. which has already shown a healthy The coming financial year will be growth last year. impact on the ease of retail payments even further. net profits of most help in diversifying their exposures. Weather from ‘liquidity in deficit mode’ to ‘liquidity funds across different banks with the events. The of borrowing in a declining interest rate has launched the Unified Payment adoption of digital technology will scenario. Some models expected to strengthen and speed up such as bank account numbers during are now predicting La Nina conditions in the resolution of stressed loans and a financial transaction. railways. defence and in Apr’16. lending rate (MCLR) from the base which will not only reduce the cost of rate system w. income appreciation for the households. This is expected to boost demand for Outlook banks’ credit in personal segment. Against this background. RBI has indicated an and put under close watch. All possible and coastal shipping. These housing has been rationalised. This in turn has Correction in inflation during the last impacted their return on assets (RoA) financial year has resulted in real and return on equity (RoE) adversely. 2016. The policy space accommodative policy stance ahead solutions for resolution of stressed in existing brown field sectors such as and reduced the repo rate by 25 bps accounts are being worked out by capital goods. The UPI will allow therefore gather further pace across benefit from the change in RBI’s stance customers to instantaneously transfer all banks – India or abroad. both monetary policy and recognised and remaining expected is expected to foster new investments fiscal policy will be conducive for stable stress in the coming year identified in green field sectors like offshore wind economic growth. Government of India. impact on the banking system. The introduction the later stage of monsoon. India’s notified a ‘Framework for Revival and growth fundamentals are intact. due to an increase of 14. Interest `477097. Income and in FY2015). `3823. mainly due to higher average year.80 20. to 6.16%.89 crore in FY2015. A major portion of the 16 recorded an increase of 10. average cost of deposits (based on Contingencies daily average) in India has decreased Major provisions made in FY2016 were Your Bank’s aggregate liabilities from 6.35 crore (as against `5889. The average yield for FY2016 was at `43257. to `1463700. to resources deployed. and An amount of `2985.73% to `28158. The Provisions & in government securities.22% in as under: (excluding capital and reserves) rose FY2016. expenses on deposits during FY2015- March 2016. An amount of Non-interest income increased by `149.14 crore (net of write-back) by 10. depreciation on Investments (as on 31st March 2015.42 Total interest expenses have increased crore for FY2016. on 31st March 2016.38 crore increase in deposits and borrowings.31 crore in FY2016 Other Operating Expenses registered registering a growth of 7. An of investments.30% from `2048079.55% in FY2015. The Operating Profit of your Bank crore at the end of March 2015.83 crore (`677.98% in FY2015.II.07 crore in FY2015 FY2015.24 crore as 24.25 crore as on 31st March 2016 miscellaneous expenditure.00% in FY2016.06 crore in FY2015).50 crore in FY2015) has been and Expenses There was an increase of 6.76% and stood Expenses Provision for Tax (as against at `1730722. Your loan portfolio increased by 12.49 crore in FY2016.56 crore was provided for 2016 against `1576793.97% from `481758. the from 7.28 crore in March 2016. During the period.82% mainly due to Revenue and other Reserves include higher volumes. as compared to `39537. to `25113.35 crore as on 31st March 2015) State Bank of India | Annual Report 2015-16 33 .07 crore written back from increased by 9. as compared to crore.e.27 crore (as against Interest Income `105. The borrowings as against `22575. to `13101.41%. a by 0.05% due to higher `106803. Foreign Currency Translation Reserve of advances (based on daily average) lighting.17%.65 `1300026.59 crore as at the end of in the previous year) by way of dividends March 2016 mainly attributable to from Associate Banks/ subsidiaries and Reserve & Surplus Capital Instruments issued in India and joint ventures in India and abroad. The average yield on increase in expenses on rent.17% from `1919641. Revenue and other Reserves. (` 6172. The increase in `2157. your Bank received an depreciation on investments in FY2015). investment was in the domestic market compared to the previous year.70% in transferred to Capital Reserves.05 crore in the `4029.28% from `205150. repairs and maintenance and ` 6056. An amount of 4267. i. whereas the average level of `26984.59% from Bank posted a Net Profit of `9950. to income of `475. Liabilities Income from resources deployed in Your Bank registered an increase in The total assets of your Bank have Operating Profit in the current financial treasury operations in India increased by year.28 crore as at the end of provisioning requirements on NPA. for non-performing assets (as against 31st March 2015 to `2114788. taxes.03 crore as at the end of has decreased to 7.81 crore `2259063.03 crore `224190. Investments slightly decreased from `97381.57 crore on deposits in India grew by 14. as compared to previous financial increased by 10. to 10.07 crore in crore in FY2015) has been transferred to from `152397.82 crore in FY2015. against `590.39% in FY2015.90%. amount of `345.83 crore in FY2016.41%.39 crore in FY2015).36 crore in FY2016.29 During the year.20 crore (as against borrowings & refinance outside India. Financial Performance Assets and in India has slightly decreased from Operating Profit 10. `5168.41 crore towards The deposits rose by 9. crore at the end of March 2015.06 Total Interest income has increased the Staff Cost from `23537.08 crore in FY2015) has been previous year) by way of profit on sale transferred to Statutory Reserves. FY2015.55 crore towards Standard liabilities was mainly contributed by Non Interest Assets (as against `2435.75 crore to decrease of 24. to `163685.80 crore (`3618.57 crore in FY2015.60 crore `17908.39 crore.92 % in FY2016. an increase of 9.44 crore as on 31st March `6212. through the launch of innovative products and 16784 solutions aimed at making banking more 16333 convenient to customers. Loans@SBI 34 State Bank of India | Annual Report 2015-16 . to meet the aspirations sourcing of home loans. 3006 3137 2573 2709 2016. Your Bank has been at the forefront in leveraging Exhibit 02: Branch Expansion Trend technology in banking. making it easier for the customer to conduct business. was launched during the year for online solutions. mobile.57% of total 4497 4642 Domestic Advances. A steady stream of technology-driven innovations and changing consumer Rural Semi . The Group comprises six strategic business units and is also the largest Business Vertical in terms of Branch Network and Human Resources. processes in Retail. internet and Assets are being strategically positioned thereafter. deposit customers and consequently Bank for India on the Go’. anchoring 96. In FY2016. your Bank scaled Simultaneously.Directors’ Report III. and CASA growth on the liabilities side. Your Bank has 15869 a multi-channel delivery model in line 14816 with its strategy to serve its customers by offering them the choice to transact 14097 through any channel. All these initiatives have essentially revamped the Bank’s process and tools. time and place of their preference. using technology to Customers also have the facility to track Your Bank continued to see strong deliver a better customer experience. as on 31st March.04% of total Domestic Deposits. to grow to form a much larger proportion of such applications. auto loans up its offerings across various channels of this growing customer base. Your FY2012 FY2013 FY2014 FY2015 FY2016 Bank also strives to anticipate the future needs of customers and deliver those expectations through technology-based robust growth in the retail deposit base. Core Operations National Banking Exhibit 01: Branch Expansion Group FY2016 The National Banking Group (NBG) FY2015 is the largest business vertical of 6257 6296 your Bank. To this end. monitoring follow-up action social media. In the status of their applications till their momentum in acquisition of retail line with our endeavour to be a ‘Smart loan is sanctioned. Retail and other retail loan applications and – digital branches. Customers can of total advances.Urban Urban Metro preferences is rapidly transforming the retail banking landscape. your Bank now check their eligibility and scheme Retail Banking is also playing an is constantly endeavouring to come up details using the interactive eligibility increasing role in customer acquisition with customer centric products and assessment tool and apply online. and 53. Solution (OCAS) launched for sourcing FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 Home Loan applications online and State Bank of India | Annual Report 2015-16 35 . XX FlexiPay Home Loan (Home Loan 0. Home Loan portfolio 31. with a focus levels.A.62 Home Loan sanctions / disbursements. 2016. scheme details. Exhibit 04: Home (` in crore) thrust to its Home Loan portfolio.755 crore.03.33% of Whole Bank Advances as on 31st March.501 crore were mobilised under 2. using the interactive Home Loan portfolio in the Banking fourth in percentage terms during the eligibility assessment tool and apply Sector and market share of over 25% same period.92 in the average time taken for delivery of innovative Home Loan products: 0.78 Loan delivery was rolled out under helped in improving customer service 983 976 Project TATkal initiative.5 lakh Home Loan proposals valuing 1831 NPA% Project TATkal: A completely 1693 `32. etc. State Bank of India has the largest absolute terms and reduced to one. on such applications.01. 1. Home Loan 1. Exhibit 03: (` in crore) Home Loan Levels 190552 159237 140738 119467 102739 89914 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 Griha Tara Campaign launched to During FY2016. Personal Banking While Home Loan portfolio has more thereafter. Customers also have the facility amongst All Scheduled Commercial Home Related Loan portfolio as on to track the status of their applications till Banks (ASCBs). constituted 15. Home Loans NPA levels have more than halved in customers can now check their eligibility.39 re-vamped structure and processes the Campaign. In addition to business for end to end transformation of Home development. several initiatives were encourage every member of the bank taken by your Bank to give an additional staff to market Home Loan proposals.51 Online Customer Acquisition with Flexible Repayment option). Some The campaign was very successful Loan Gross NPA Levels of the important initiatives in this regard and about 35% of the staff members 2150 Gross NPA are as under:.42 on strengthening delivery of services to Launch of the following new and customers and bringing about reduction 0. monitoring follow-up action than doubled during the last 5 years. Over Levels 1. Total Home Loan and online. the Campaign has also 1301 1.2016 stood at `2. their Home Loan is sanctioned. participated in the Campaign. 925 (15. Home Loan markets. Government of India has rolled Online Application for Xpress Credit out a Credit Guarantee Scheme for Personal Loan with document upload 2. no advance EMI and with an option for an Overdraft facility. price movement and inventory position `15. with no prepayment/foreclosure penalty.149 Providers: 4. launched the following initiatives in XX BankBazaar. Education Loans Subscription of Research data. FY2016: com: Tie-up for extending our reach on online space and acquisition of good Online Overdraft against Fixed FY2014 FY2015 FY2016 quality Home Loan leads. Your Bank has also introduced the Loyalty Car Loan Scheme for existing Housing Loan borrowers.5 crore was MOUs / Tie-ups with the following 6. SBI’s Car Loan Scheme.91%) popularity. For students going abroad for Auto Loan Advances for creating housing stock for their higher studies. SBI Global Ed-Vantage employees / directors). Your Bank Inspection process using Tablets for the rates.400 launched which is rapidly gaining in Home Loan lead aggregators / Service (19.224 XX SBICAP Securities Limited 27.5 Lakh and & pick up facility with system based Skill Loans scheme and launched the computation of Net Monthly Income.Directors’ Report XX Corporate Home Loan (Home Online Application system for seamless Loan to Corporates / Institutions Exhibit 05: Growth in (` in crore) delivery. offers the best to Vidya Lakshmi Portal to provide a single Digitisation of Pre and Post sanction our customers . Deposits through Internet Banking Platform XX PropTiger & Liases Foras: 3. 1 financier of Maruti Cars for the year. 32. 38.549 Scheme with limits upto `1. Personal Loans (SSL): Tie up to leverage sales force of Continuing the digital journey and to SSL to expand presence in key markets provide seamless and hassle free by improving feet-on-street and provide banking experience your Bank has door step delivery to valued customers.177 crore with a Market share of can avail the loan without visiting the in respect of all ongoing projects in key 23% amongst all scheduled commercial Branch. Auto Loans Education Loans upto `7. offering concession in interest rate and 100% financing of on-road price. granular data on new launches. and has also integrated the portal with its convenience of the customers. Your Bank has entered into tie-up with SBI Caps Securities Limited (SSL) as our Corporate Agency for marketing Auto Loan products and became the No. Finance “On Road Price”. property End to end digitised process for Your Bank has a total exposure of Loan against Shares wherein customer listings. 36 State Bank of India | Annual Report 2015-16 . banks. the Longest payment period of 7 years. which is now available online.13%) 4.Competitive interest point of service to students.com & Paisabazaar. 57 % in March 2016. Car/Home performance in Personal Loans. Introduction of “SBI Quick”: Missed Consistent focus on streamlining Savings Bank deposits have registered Call Banking facility for balance of processes has resulted in robust a Y-O-Y growth of 13. Common Reporting Standard (CRS) Bank and Central KYC Registry (CKYC) norms.76%) During FY2016 branches as on 31st March. NRI Business Advances improved from 17. discerning NRI customers who in 14. 2016.659 FY2014 FY2015 FY2016 44.548 47. e-Commerce: A Holiday Savings India Account (with online end to end capabilities) in partnership with Thomas Cook launched in February 2016.699 Exhibit 07: Growth (` in crore) through 81 specialised and dedicated in Domestic Deposits NRI branches and 100 NRI intensive 8. with in FY2015) while Current Account Loan enquiry using mobile phone.616 67.252 1. More growth of `14152 crore during FY2016 deposits have grown by 9.151 turn take pleasure in being served (25.09% during FY2016.188 1. Following digital services were introduced in FY2016 for customers: A Smart Account opening forms have been made fully compliant with FATCA. a growth of 8. for an Online Account Application Facility was extended to all Savings Bank products including Basic Savings Bank Aspiring Deposit Account (BSBDA) and Small Account.49.643 5.81. blocking ATM Card.617 During FY2015 1.23.62%. Domestic Deposits The Domestic deposit portfolio grew Saving Bank Term Domestic by 10.51% enquiry. than 70 lakh customers are already (25% YOY).03%) 70.931 (18. Despite declining interest rates the registered for this facility and daily calls Term Deposit portfolio has registered are in excess of 4 lakh.689 69. 56.17% (from 9.20% during FY2016. Domestic Deposits Deposits Deposits State Bank of India | Annual Report 2015-16 37 .00 % in March 2015 We enjoy the patronage of 17 lakh to 17. Exhibit 06: Growth (` in crore) Your Bank’s Market Share in Deposits in Personal Loan 6. 85 crore (equivalent to 777 Kgs of The High Networth Individual (HNI) gold) achieving the highest aggregate Creation of ‘Overdraft’ against segment of the Personal Banking market share of 15.63. This centre offers Facility of Instant NRI Account personalised services through a opening through our Relationship registered mobile number. 5.22. FY2015 FY2016 82.17. 2016. Sovereign Gold Bonds Customer centric measures for NRIs 37.91%) Institutional Tie-up Business 1. business hours from 8 a.36.784 was introduced during the year.925 9.19.160 accounts.702 74. In addition to the Salary Packages for the Defence.24%) Exchange Centre and Al Ansari cash transactions during extended 1.Directors’ Report Activation of Debit card through contributing `229749 crore average Exhibit 08: (` in crore) INB for NRI customers. your Bank launched a Priority 1. Railways. for NRIs.762 Managers (RMs) posted at UAE valued customers to conduct all non- (11. Internet Banking (INB). CASA Total Total Your Bank participated in all the three Account opening forms were made Liability Assets tranches issued during the year and fully compliant with FATCA. Deposits employees from leading MNCs are No.946 FY2014 FY2015 FY2016 FY2015 FY 2016 49. 2015.757 33.426 2.377 1.027 3.283 the Scheme during FY2016 with an intention to reduce the demand for Online application for loans enabled physical gold as an investment asset. Insurance and Credit During FY2016. Central Government. Online application facility for Salary Accounts 5. CRS and mobilised an aggregate amount of CKYC norms.749 As on FY2016 As on FY2015 91.29.082 3. the total Salary Card.511 (39.98.607 The Government of India launched introduced during FY2016 include: 29. deposits as of 31st March. Growth of SBI’s HNI Business Exhibit 09: (` in crore) NRI Advances State Governments and Police. 38 State Bank of India | Annual Report 2015-16 .m. are also made available through Account customer base has grown to the Centre. convenient. Avg.04 lakh. To NRI Deposits Fx-out facility for sending outward provide an additional.83% amongst all NRE/NRO deposit accounts through business registered a growth of 31% participants.75. to 8 p. Banking Centre at Bengaluru in November.m. Para Exhibit 11: (` in crore) Military.786 Exhibit 10: Growth in (` in crore) our Corporate and 1.297 4. 8. Premier Banking `210. Services for the Group’s products such 7. of HNIs also banking with your Bank. Salary Account Tie-Ups as. Mutual Funds. remittance through all our branches service channel to HNIs beside the has been enabled for NRE and NRO branch. enabling 13.398 Exchange in UAE. State withdrawing money at domestic ATMs.2015 42454 2595 1849 46898 Currency Conversion (DCC). Visually Challenged customers. passbook printing etc. PIN change. of cash that our Group ATMs dispense have been enabled as Talking ATMs for Cash Deposit Machines and Recyclers is `3039 crore a day. Over 1156 of our ATMs are on solar power back- up and the count keeps growing. Exhibit 12: Exhibit 13: SBG Share of ATMs Every new machine added comes with No. mini statement. Apart Exhibit 14: from physical caretaker arrangements. SBG Share in ATM Transactions 3000 ATMs have been brought under FY2012 FY2013 FY2014 FY2015 FY2016 Electronic surveillance during the year.2016. Associate Banks has one of the largest ATM networks in the world with more Bank group has a Debit Card base of 23.17% 2.34 crore. SWAYAM: Barcode based Urban/ Rural population groups.66% is our priority too. Recyclers payment of fees. On an average.2016 42740 2595 5753 51088 added facility for foreign Master Card 1. share as per RBI. 59011 51491 54560 SBG. SBG.34% Wherever possible. 2016. over up across the country where customers 11.B. your Bank has installed Surveillance during the FY2017.3. along with its transactions per day per ATM. as on 31. (as on Dec’15). cash withdrawal.83% another 8000 ATMs under Electronic During FY2016.2014 40768 2583 1516 44867 Your Bank has introduced Dynamic 31. 4220 ATMs and Recyclers. 3734 of our ATMs have ramps to facilitate easy access 31752 Others for the physically challenged persons. Population group-wise your Bank has a 50:50 ATM Others coverage of Metro/ Urban and Semi- 49.66 % of market customers 24 x 7 cash withdrawal and branches and onsite/offsite lobbies. ramps and / or side railings are being provided. The Passbook Printing Kiosks ATM Channel handles 56% of total Your Bank has rolled out more than Alternate Channel transactions and Your Bank has so far installed 4953 6. balance (MFK + SSK) Machines (CDMs).3. 27286 70.g. (SBI) enquiry. donations. Group ATMs this feature ab initio. As on ATMs Kiosks Cash Deposit Total cash deposit.000 SWAYAMs (Barcode based 43% of the total financial transactions Passbook Printing Kiosks) at its Recyclers (SBG 5768) to provide of your Bank. With a 29.83 % print their passbooks on their own using of the country’s total ATM transactions More than 1200 e-Corners have been set barcode technology. Anytime Channels can avail the entire gamut of services from this Channel. Thus. 31. Care for the physically challenged 29. customers can (SBG) ATM network transacts 50. a value 31. On an average. Your Bank is also planning to cover 50.3. State Bank Group’s cash deposit facilities. e. the total number of Talking ATMs has gone upto 9753 as on 31st March. whereby cardholders get the an average hit rate of more than 214 market currency conversion rate while State Bank of India. ATM user-safety is our concern too. the volume More than 1153 ATMs during FY2016 than 59000 ATMs including Kiosks.61 millions transactions per day are State Bank of India | Annual Report 2015-16 39 . ATMs/ Recyclers routed through our ATM network with holders.3. Using these kiosks. trouble shooting for Mobile compared to 3. Contact Centre Q1 FY2016 Q2 FY2016 Q3 FY2016 Q4 FY2016 financial sites (Source IIFL).29 e-Commerce directly or through State Bank Collect or through e-Commerce aggregators Your Bank’s Net Banking website facilitating around 67 crore e-Commerce ‘www. recording 39% growth toll free numbers 1800 425 3800 or has been rolled out at all retail branches over the previous year. The percentage of friendly net banking services to average call volumes of around 4 lakh GCC transactions has improved from your Bank’s retail and corporate calls per day.48 crore in FY2015. eye on evolving consumer trends. Vadodara.81 against TDR/STDR.in.co. to enrich the to customers’ accounts and Bank’s 4.00 email ids
[email protected] new merchant tie-ups. continuously keeping an operating from multiple locations like March 2016. It has emerged as transactions are being routed through It provides robust and customer a strong delivery channel handling GCC every day.64% in customers. In this pursuit. e-Auction. Debit Card hot-listing Card (GRC) route during FY2016. Digital dedicated toll-free line for queries related Signature Certificate as a Second to the Pension Payments (1800110009) Factor Authentication for Corporate Net & Pradhan Mantri Jan Dhan Yojna banking users. Large and Medium Corporates.91 crore transactions were significant support to other technological carried out through the Green Remit In order to rejuvenate the e-Commerce channels for e. Exhibit 15: (` in crore) 1. 3. 1800 11 22 11 apart from toll number of your Bank. Agra & Kolkata characterised by increasing adoption of and is servicing in 12 languages to its Exhibit 16: (` in crore) digital channels.Directors’ Report increased from 1.76 upgradation of the ‘onlinesbi’ portal The Contact Centre is also handling 4. 1. Online registration for (1800110009).25 and features such as. facility to register/ servicing 20 countries.37 lakh in FY2016. On an average 7. Depts. your Bank ensured continuous 4.com’ is the eighth most 2.08% in March 2015 to 27. Internet Banking & about 18. and ‘State Bank mCASH’ for remitting Q1 FY2016 Q2 FY2016 Q3 FY2016 Q4 FY2016 money through email ID or Mobile Apart from servicing enquiries related Number of the beneficiary.02 the SKOCH Award under Technology requirements of the Govt. during customers.co. During FY2016. your Bank had entered into 5. The partnerships. Green Channel Counter enabled around 124 crore transactions been servicing customers through Green Channel Counter (GCC) facility during FY2016.72 transactions. Bangalore. your Bank’s digital Banking.16 lakh in FY2015 to to cater to the e-Tendering. The Contact Centre is 20.58 to offer more user-friendly look & feel calls received from overseas customers 4. to e-mails received on SBI Corporate ‘Quick Transfer’ facility up to `5000. This initiative won e-Collection and bulk payments related Swayam: Total Transaction 5.98 popular online global financial site and the only Financial site from India to figure in the list of Top 10 global 6. Green Remit Card digital experience of the customers.40 lakh 080-26599990./PSUs/ Products Category in 2015.in and without registering the beneficiary customercare. the Contact Centre is providing Some 3. Internet Banking and Mobile average daily transactions of GRC has offerings are upgraded continuously wallet. status of NEFT/RTGS and 40 State Bank of India | Annual Report 2015-16 . Online over draft at 19 International Toll-Free numbers 3. ecosystem through strategic and status. This highly Customer Service secured and cost-effective channel has Your Bank’s Contact Centre has 3. products.g. It also has a inquire/cancel nomination online.onlinesbi. GCC: Transaction FY2016.homeloans@sbi. It is also responding Retail and Corporate Internet Banking. The contact centre is also personal and agri. In view of this. it has significantly expanded some of its outbound processes by making calls for: State Bank of India | Annual Report 2015-16 41 . Other Recent Initiatives stands at 3006 as on 31st March. semi-urban as well as urban areas. such as Completion of online application accelerated the roll out of Customer funds transfer within SBI accounts. infrastructure and information security. 2016.SBI Express Remittances. complaint Soft recovery of delinquent Customer Experience Excellence registration. registered Mobile Number) to Phone- banking The Contact Centre is popular amongst all sections of the society in rural. form of personal segment loans Experience Excellence Project (CEEP). your Bank offering transaction services. ATM. SWAYAM Bar coded Bank ATMs Security schemes by logging into Passbook Printer and Internet enabled Migrating TPIN customers (having SBI Quick. Opening. get Mini machines viz. apply for Electronic Cheque Drop Box Machine through the Contact Centre and State Home/ Car Loan & view PM Social (ECDM). and Internet Banking generated before the customer reaches streamlining the process of Account the branch. do Balance enquiry. It also reduces Recyclers. Now a customer can email register/ deregister for Missed call Provision of all Anytime channel Banking. 2674 branches Cross-selling and Lead generation Cheque(s). block ATM card. Further. total number of branches under CEEP 7. services at select Branches. Verification of mobile number have to endure. Education Loan and Deposit “SBI Quick” was launched as a one Some key initiatives introduced by accounts stop application for all Non-Financial CEEP include: Statement of Account through transactions. your Bank is continuously monitoring and reviewing its processes to enhance the simplicity and effectiveness of the Contact Centre. Swayam and Electronic update requests received through crowding at a branch as the token is Cheque Deposit Machine. issue of Fixed Deposits. In order to utilise the Contact Centre infrastructure to the fullest and generate revenue for your Bank. This helps migration of customers to the usage of Generation of ATM PIN in reducing waiting time that customers Anytime Channels such as ATM. Your Bank has added the following A Mobile App “State Bank No Queue” The core objective of the CEEP is to services that will go a long way in was launched during the year. CDM. CDM / Recycler. Issue interest certificate of Home Loan. Phone banking Registration Statement. stop payment of Under this initiative. achieve enhancing customer convenience and enables customers to self-generate reduction in wait times and reduction support: e-tokens for availing select Banking in the service time (processing time). This App improve crowd management. segment Borrowers Project : During FY2016. great emphasis has been placed on technology. statement of accounts. to the were covered during the year and the customers registered for Phone-banking. Digital Banking .“sbiINTOUCH” Introducing Grahak Mitras to “India on the Go” is epitomised by India’s ever increasing Gen-Y and Gen-Z fast- facilitate issue of tokens and facilitate track population. allowing customers creation of Service Desks for non cash to transact on a self-service mode. These Operator (SWO) roles in Branches and branches are equipped with state-of-the-art devices/kiosks. who are quick to absorb new technologies and who are very migration of customers to Anytime comfortable using digital channels for almost all day-to-day activities in life. 42 State Bank of India | Annual Report 2015-16 . Your Channels.Directors’ Report PC with printer for online opening of Creation of an Account Opening Cell to streamline the account opening process accounts at select Branches which Standardised process for sales management and cross selling have high walk in customers Provision of integrated Queue Management System (QMS) and a customer Feedback TAB to these Branches for better crowd management through real time monitoring and Branch choreography to tackle peak level crowd. advisory services are transactions available through Remote Expert on hi-definition video conference. 8. Bank’s “SMART” strategy is to provide this Digital Banking experience to such Standardised Single Window people through our futuristic branches with the sub-brand “sbiINTOUCH”. Besides onsite support. e-Trade through SBI Cap Securities are made available here. SBI’s innovative applications have brought Banking closer to the customer ‘on the go’.2015 Dec . 115 “sbiINTOUCH” 9. The first set of 7 “sbiINTOUCH” branches. Bridging the gap between Customers and Bank.44%. Mumbai.These branches provide a consistent experience across omni channels and comprise transaction processing stations (self-service zone). market share in December’ 2015.2015 more widely.2015 Sep . Branches Superior customer experience and trust in your Bank has made us the leader in Opened in Mobile Banking across the banking sector. your 9 9 10 5 Bank intends to continue its journey 3 5 4 of expanding this digital footprint even Mar . Mutual Funds and credit cards. information and interaction stations and advisory A Smart rooms. Right from account opening (including enablement for transacting through alternate channels like Internet Bank for a Young Banking and Mobile Banking and instant issuance of personalised debit cards) to Remote Expert advisory. Life Insurance. while consistently maintaining the number 1 position in terms of volumes with 38. These were opened as (Number of Transactions) as per RBI HDFC working pilots in New Delhi. State Bank of India | Annual Report 2015-16 43 . India on banking products and services delivery including products and services of SBI subsidiaries viz. Mobile Banking Your Bank. Ahmedabad and OTHERS 41 Bengaluru.2015 Jun . the go General Insurance.82% in March 2015 to 35. These 19 22 20 16 18 Branches are available in 70 districts 13 15 13 15 15 15 14 11 of the country. AXIS KOTAK Kolkata.97% in Dec’15. 2014. has changed the way its customers do Banking. the Banker to digital India. your 36 39 Bank has opened 115 sbiINTOUCH 33 Branches to provide digital experience to customers across the country. Chennai. Going forward. Your Bank has leaped to the number one position in terms of value of transactions with a quantum jump in market share FY2016 from 9. During FY2016. under the sub-brand “sbiINTOUCH” was launched on 1st Exhibit 17: Market share in Mobile Banking % SBI ICICI July. your Bank launched Buddy is the product designed for the Growth in mobile banking applications for Transaction Volumes tech savvy generation. A user can Bank Anywhere Corporate”. The wallet has applications during FY2016 over FY2015.Directors’ Report as Account Enquiry. of India 44 State Bank of India | Annual Report 2015-16 . Mini Statement.75 Launch of State Bank Buddy-Mobile Wallet by Sh. the FY2015 FY2016 Hon’ble Finance Minister . Out of which `11.67 11661. 2016. State Bank Buddy 9 9 8 7 7 7 6 4 Latest addition to your Bank’s plethora of technology offerings is its Mobile Wallet Mar . who are in touch with the 14.2015 Dec .2015 Sep . 7.87% and value of transactions multiplied manifold to grow by 721%.2015 Jun . Govt.2015 “State Bank Buddy”. “State the country. all their banking transactions such Recharge mobile/DTH. authorise 29 26 e-cheques and enquiry of account 22 20 22 transactions. EPF Payment.47 crore are merchant transactions. 18 15 13 12 12 11 10 10. Exhibit 18: Market share in Mobile Banking % SBI Utility Bills payment.71 FY2015 FY2016 Exhibit 20: (` in crore) Growth in Value of Transactions 95767. Buddy user registration has Your Bank saw astronomical growth in all the facets of its Mobile Banking crossed 26. the youth of SME & Corporate customers.60 lakh. to the tune of `230.71 crore. The volume of transactions saw a growth seen more than 48 lakh transactions of 86. ICICI (Value of Transactions) as per RBI HDFC creation of Fixed Deposits and a lot AXIS more. The Corporate customers get KOTAK 36 36 OTHERS additional features which allow them to 30 31 initiate payment to suppliers. upto 31st March. Pay utility bills. These “Send & Ask Money” by knowing just applications allow customers to do the mobile number of the counter party. Within 7 months of launch.41 Bank Anywhere Saral” & “State world through their Mobiles. Arun Jaitley. Exhibit 19: (in crore) During the year. all the branches are now authorised to open accounts under National Pension System. Chairman State Bank of India | Annual Report 2015-16 45 .34 crore in FY2016 Private Limited and SBI Cap Securities from SBI Cap Securities Limited. Your Bank has designed. and the most popular names in the recording a growth of 52. a unique suite of Wealth can be viewed and downloaded from policies and 4.94 lakh credit Some key highlights of the offering: SBI Life Insurance Co.57. Buddy marketplace boasts of number of SIPs mobilised increased accounts opened in FY2015. Income from SBI Life increased from `244.Shop online and Book a Flight.28 crore in FY2015 to `489.09 crore in FY2016. L&T Mutual Fund. recording a growth of 37.62 % to `106. which is policies of SBI General in FY2016. Wealth Management e-Commerce industry. Smt. At present. and Corporate / Trusts shortly. developed Your Bank marketed 1.18 crore FY2016. SBI Cards & Payment Services major digitisation effort of your Bank.40.04 crore in FY2016.043 accounts were opened Hotel. available on both iOS & Android.84%. ICICI Mutual Fund and HDFC Mutual Fund. Selling SBI Card & Payment Services Your Bank is the Corporate Agent of Private Limited: 1. FY2016. Movie tickets. 2016 Your Bank’s various Mobile applications Personal Accident Insurance (PAI) “SBI Exclusif”. Arundhati Bhattacharya.46 crore and launched.80% over the 12. In addition. Limited and has branches in FY2016. recording a growth of 29. gross mobilisation 35. in comparison to 2.04% over the corresponding period Launch of SBI Exclusif at Bangalore by of last year.009 in FY2016. Income from SBI General increased from `56. increased by 82% and premium eligible. The technology component of Distribution Agreement with SBI Mutual our Wealth Management Initiative is a Your Bank earned commission Fund. income of `0. Marketing & Cross increased by 43. Franklin Templeton Mutual Fund.87 Dedicated RM available through Limited for distributing their products.477 wallet.95%.06 crore. partnership with some of the biggest from 1. but it will be extended to NRIs 11. Limited and SBI India’s first ever e-wealth centre cards were issued through your Bank General Insurance Co.68 lakh of products of UTI Mutual Fund.076 to 2.62 crore in FY2015 to `337. lakh Demat accounts were opened in voice/video/chat Your Bank also has tied up for distribution FY2016.88 lakh Health Insurance Management services (WMS) for its the “State Bank App Kart”. Mutual Fund. During FY2016 Cross Selling income increased from `388. Also. online food and increased from `20313 crore in FY2015 under National Pension System in buy gifts through State Bank Buddy to `39577 crore in FY2016. Number of Health Insurance policies only resident individual customers are issued. 2. corresponding period of the last year. in comparison to 13. Mutual Funds. high net worth customers. Tata accounts opened in the FY2015. Bus.64 crore in FY2015 to `73. on 14th January. recording a YoY growth of 25. financial planning and portfolio to taxi operators or owners associated under Loan Origination & Loan Life analytics with a taxi aggregator’s platform. Ecosystem Financing products have been introduced to hours (Project Shikhar) has been started by capture top quartile customers in an your Bank to take advantage of growing industry. New products like Asset Backed deployed for serving SME customers Loans (ABL) have been reviewed Leveraging big data and analytics Your Bank’s endeavour in driving SME and upgraded suitably. over 1 million customers.000 relationship managers arm to the SME segment. which for various processes involved in the Asset allocation and one-view is a truly disruptive offering. CGTMSE cover and MUDRA hassle free. the SME mitigated manner and has brought portfolio of `1. Sector specific based lead generation for customer growth rests on three pillars: products like Construction Equipment acquisition a) Customer Convenience Loan. Medical Equipment Loan have Improving internal processes b) Risk Mitigation been introduced with pricing matrix and documentation needs to reduce and scoring models. ensuring technology for capturing early warning quality and uniform standards of credit 2-Factor authentication protocols signals and has introduced digital dispensation and have robust record to bring enhanced layer of security for inspection of units. (ii) Processes (iii) Delivery. where delivery of Credit to provide a ready available across all asset classes loan to the seller is given at the click of reference to all operating functionaries. counsellors banking platform and launched various Open platform with a suite of best. which is a process of digitisation of pre- Enterprises sanction/ post sanction of SME units & Your Bank has been the pioneer and Your Bank has taken several initiatives collateral securities capturing location market leader for SME financing. Under this initiative in FY2016 your maintain tight controls on quality of sales designing products. be it sourcing business. 2016 accounts for nearly 12% of Suite. Your Bank has launched a World Class advisory services e-Commerce footprint in the economy. leveraging technology in every facet of Middle Office compliance team to the value chain. streamlining Bank has introduced digital inspection processes. SBI is and information retrieval systems. in India. Management Software (LOS & LLMS) Robust infrastructure enabling which focus on capturing of pre-sanction highest amount of security Apart from this. The revival Vijay starting in FY2015 to revamp of business sentiment and growth in (i) Product Suite: the delivery model for SME lending GDP has brought the focus sharply on All the products offered to Micro. a button. Scoring Models have – are providing a significant shot in the been introduced for loans up to `10 Over 1.Directors’ Report Services available beyond banking In FY2016. Small & Medium enterprises have customer engagement. your Bank is leveraging process of credit portfolio.500 schemes across 15 AMCs under e-tailer sellers financing. Overall. Simplified Cash Credit product on pilot available through expert investment Your Bank’s focus had been on digital basis at Chennai & Hyderabad Circles. Small & Medium monitoring and follow-up. Lakh. each transaction. improving delivery or application through Tab & Mobiles C. in order to drive growth and improve the growth and viability of SME units. Cluster specific c) Technology based digital offerings customer turn-around time by ~50% 46 State Bank of India | Annual Report 2015-16 . (ii) Processes: facilities for SMEs based on technology in-class products like Credit Risk Model to provide Your Bank has introduced detailed Capability to execute MF orders in automated instant sanction of loans Standard Operating Procedure (SOP) over 4.534 crore as on 31st about significant changes in (i) Product (iii) Delivery: March. An in-house ‘Digital Tool’ is State-of the art tools like risk being used for instant sanction of loans Your Bank has covered key products profiling.89. Your Bank had undertaken Project your Bank’s total advances. with following The Government’s initiatives – Make been strengthened and made more key features. With to build its SME portfolio in a risk of the property/ place of business. Your Bank is extending 10024 collateral free lending up to `1. portfolio and the sector-wise portfolio is Supply Chain Finance represented below: Exhibit 21: ABL. your Bank is focusing on Exhibit 26: Balance Sheet further strengthening its relationship Sector Wise % Share eDFS with the corporate world for their supply chain partners. of India. Bills Leveraging its state of the art CGTMSE technology. promoting fleet finance. simplified documentation and assignment of dedicated relationship FY2013 FY2014 FY2015 FY2016 managers. Others Auto 2W 7 8 During the last fiscal your Bank has 31% entered into 57 new eDFS & eVFS Steel Auto CV tie ups taking the overall tie ups with 11 10 63% industry majors to 193. Increasing focus on risk mitigated. It was able to achieve `12.281 crore disbursement almost 92% of the target of `13. launch Exhibit 23: Performance under ABL Growth in eVFS of new Asset backed loan product. OD. Your Bank has a portfolio of `11. OD.325 crore As on March 2016 6% disbursement under MUDRA loans set by FY2013 FY2014 FY2015 FY2016 Govt. SCFU. e. e-DFS and 2873 e-VFS products 15905 2038 Deploying Vijaypath tool for 1742 performance monitoring of relationship managers 7408 1164 Customer engagement has improved 595 significantly with reduced turnaround time.00 crore under guarantee of CGTMSE. State Bank of India | Annual Report 2015-16 47 . Bills CGTMSE CGTMSE & MUDRA Balance Sheet Your Bank has been a pioneer in 14048 supporting MSMEs and for micro and small (MSE) business.g. SCFU. (` in crore) Exhibit 25: (` in crore) competitive products. OIl 19 There has been a 40% YoY growth in the eDFS portfolio as a result of the new As on March 2015 6% FMCG tie-ups.030 crore under CGTMSE. Auto PV 38 7 Exhibit 24: (` in crore) Credit flow to Micro and Growth in eDFS Small enterprises under Exhibit 22: ABL. Your Bank has been FY2014 FY2015 FY2016 increasingly shifting focus towards risk The diversification in the eDFS mitigated lending. The cost 37% 7338 of guarantee cover for working capital 4781 facilities up to `50 lakh is being borne by 57% your Bank. Under this. Gupta. MD (C&R) at the launch of Your Bank has developed a specialised e-Smart SME e-Commerce Loan offering for startups active in the e-commerce space. been designed. K. uploading of documents. Three SME ecosystems have been identified as focus areas e-Commerce.first time ever in the history of banks A digital credit tool launched in partnership with Uber by the Bank’s in India. taxi aggregators and franchise finance. P&L or Income tax returns to avail this financing facility. Tie-ups with leading e-Commerce companies.Directors’ Report Developments FY2016 Project Shikhar was rolled out to gain first mover advantage in the e-Commerce space. (ii) Taxi Aggregators Taxi aggregators have been revolutionising the way Indians commute – and your Bank has tied up with these aggregators to help individual drivers buy a car and become mini-entrepreneurs. processing and sanction. The product was launched Chairman & Uber President Asia Pacific by your Bank’s Chairman & CEO of Snapdeal on 15th January 2016. (i) e-Commerce Shri P. your Bank has tied up with both Ola and Uber India to extend vehicle loans to drivers and operators associated with these 48 State Bank of India | Annual Report 2015-16 . The entire process has been automated – ‘at the click of a button’ – from online application. New players have entered the market space and B2B & B2C space is growing in demand. have been established this year. It uses an in-house developed proprietary credit model based on platform and surrogate data to assess eligibility. Snapdeal and Flipkart. all in less than a minute . This innovative product moves away from traditional balance sheet based lending to a cash flow based lending program. Under this project. A pioneering The seller no longer needs to submit traditional financial statements like Balance innovative product “e-Smart SME” Sheet. The exponential growth in e-Commerce has thrown open a world of opportunities for MSMEs. your Bank is working on various initiatives to pioneer an ecosystem for lending through partnerships with new business models. Your Bank has also for financing merchants selling developed a digital tool to identify any early signs of stress through the e-commerce through e-commerce platforms has platform data of the borrower. Dynamic Currency giving a vigorous thrust on installation Conversion Five tie-ups have been launched during of Point of Sale (PoS) terminals. thereby taking the numbers to over Anytime Fitness. to digital India. with a market share of 21. Continuous sharing of data such as: by franchisor will enable economic In sync with the focus of Government assessment of business model and of India to create a digital economy. Cards. Your Bank is space. The product suite now offers financing “Anytime Anywhere Banking” through During FY2016. across 5 centres. With a developed in-house by your Bank to Infrastructure (Merchant Acquiring view to move the larger base of Debit automate the process and enable Businesses) Cardholders to PoS terminals as also instant sanction. up by 50% over last year Your Bank has also partnered with Raymond. comfort and repayment as per RBI data. on Bank Group to ~`41. in its campaigns are being run on a regular 2016 by your Bank’s Chairman & Uber pursuit towards becoming the ‘Banker basis. Under the to offer near JIT (Just in Time) service previous year and taking the market OLA cabs tie-up launched in FY2015. competitive Debit Card penetration in the country. Mumbai Metro Debit Card.platforms. You would be happy to note that deployed in the field. awareness in partnership with Uber on 15th March. working capital and dominance of your Bank in Debit card with over 30.500 crore for the significantly simplified for enabling an on-going basis and the capability FY2016. These measures zoomed the President Asia Pacific. During the FY2016. A comprehensive product suite has your Bank continues to lead in Debit among others. Various innovations like introduction With over 23 crore State Bank Group of sbiinTouch contactless Debit (iii) Franchise Finance Debit Cards as on 31st March. your Bank is affiliation. Bank has also launched solutions for the franchisee’s initial Debit Card has propelled this sheer the Contactless (NFC) PoS terminals capex investment. State Bank of India | Annual Report 2015-16 49 .000 such terminals already transaction related needs. with ~37% of total provide a comprehensive.07% (March 15) to 26. A concerted effort by your Bank to focussing on “paperless” mobile PoS empower the customers to enjoy terminals with 30000+ mPoS terminals. your providing payment acceptance Bank has registered a growth of 56% infrastructure at the Customer Service in terms of number of transactions and Centres (CSCs) across all geographies. also providing Value Added Services facilitation. 2016. A digital credit tool has been (iv) Debit Cards & Acceptance 60% in value of transactions. an increase of 36% from the faster loan disbursal process. These loans 25.70% of PoS various Government initiatives for terminals. and existing franchisees. Franchise finance population in India have their accounts the top slot in terms Debit Card spends. Your Bank has been Debit Card spends over “Point of putting significant efforts to upgrade Sale” and “e-Commerce” for the State Documentation needs have been its technology to the best in class. aggressive marketing been designed to cater to the franchising Card issuance in the country. over 1. The tool was launched Your Bank realised early the need for to e-Commerce websites. doing banking the Smart way. Lakme salon and 3. reputed franchisors your Bank has also improved its market Amex Card has also been enabled to extend this proposition to their new share in Debit Cards spends from on SBI PoS terminals during FY2016.29% (March In addition to offering basic acquiring will be risk mitigated through franchisor 16) which is highest amongst the banks services on its terminals. delivery environment across its delivery share to over 26%. EMI facility the year – Philips. along with electronic dealer finance will with your Bank.02 lakh. Card acceptance infrastructure by DCC . Medplus Pharmacy. Acceptance of tying up with large.000 loans have been disbursed channels. In order to go “green” your Bank is now solution for large industry majors. have placed your Bank in consumer segment. You will campaigns and Debit Card awareness model that is fast growing in India’s retail be glad to know that 20% of the Banked programme. Cash@POS facility for cash identification of early warning signals your Bank has strengthened its Debit dispensation to debit card holders for stressed franchisees. supported by several factors including rapidly rising connectivity.193 102% Premium Kisan Gold Card (Asset FY2016 89. infrastructure RuPay cards were issued to over development and emergence of new business opportunities. Point of Sale (PoS) machines and Micro ATMs. rising non-farm incomes. The Indian rural market is undergoing a paradigm change with structural shifts in the economy. enabling ensuring national priorities. areas by providing Core Banking Solutions. Some financial needs of this segment through several innovative channels. Exhibit 27: Flow of Credit to Agriculture Trend (`in crore) 2. providing 100% of the cost of the tractor. Always in the forefront in ATMs and PoS machines. products and key initiatives in this area include: services. Tatkal Tractor Loan: Mortgage A Smart free tractor loan. KCC Your Bank is serving more than 1. This transformation is ease and operational convenience. Your Bank has endeavoured to meet the for managing agriculture loans. the scheme was rolled out. Rural Banking Bank introduced various technology based solutions and products to make Your Bank has always believed in the potential of rural India as an important farmers’ lives easier. as in the past. as depicted in the table below. Warehouse Receipt Financing: Smart Approach To Agri Business To avoid distress sale by the farmers Your Bank is in the forefront of technology enablement for Rural-Semi Urban (RUSU) and to encourage price discovery. India 3.77 lakh Kisan Credit Card (KCC) borrowers upto 31st March.500 74.970 102% FY2015 84. farm requirements on 24X7 basis.423 114% Backed Agri Loan): Aimed at financing emerging Agri Business entrepreneurs engaged in high-tech farming and allied activities. changing consumption preferences 1.09 crore farmer borrowers under agriculture RuPay Cards work seamlessly with segment and is deeply entrenched in rural banking arena. 26. New Products for Farmers: The products launched during the year Year Target Disbursement % Achievement include: FY2014 73. your Bank surpassed the Agri credit flow target set by farmers to purchase their day to day Government of India during FY2016. Stree Shakti Tractor Loan Inclusive Scheme: Mortgage free tractor loan for women as co-borrower with lower interest rates. Cash Deposit your Bank has entered into tie-ups with Machines. your 50 State Bank of India | Annual Report 2015-16 . KCC-ATM-RuPay Cards: For and increasing awareness among the rural consumers. 2016. while at the same contributor to India’s economic growth and its progress being integral to ensure a time improving the operational efficiency sustainable and balanced development. Corporate Tie-ups: In order to make agriculture lending more sustainable and to reduce risk in the portfolio. your Bank is focusing on supply chain finance through tie-ups. coupled with ATMs. 4.Directors’ Report D.781 102.500 86. with no processing charges and with a turn around time of Bank for an 48 hours – was launched. During FY2016. with competitive interest rates. 522 rural Customer toilets.29 crore In the years to come.03. loan repayments and micro-pension. Today. SSA Siripalli-East Godavari Banking.28 crore in FY2016.21 Micro ATM rollout. By FY2016. Card based and Cell phone District-M Srikanth(5HH8) messaging channels. the number of such in FY2015. opened 5.719. Your in FY2015. for fostering through Business Correspondents has great social benefit. continued relationship with the farming increased by 49% from `38. with over 64. A substantial number of Direct Benefit Transfer (DBT)/Direct financial inclusion. clubs has reached 10. 91% Service Points (CSPs) for servicing the the villages. your Bank has been the successful launch of several warehouses. to 9. State Bank of India | Annual Report 2015-16 51 . The key Hub-and-Spoke Model with Bank has actively participated in SHG- initiatives taken in adopted villages Business Correspondent Bank Credit linkage programme since include the construction of community its inception in 1992.628 Customer Service Points (CSPs) across the country. and conducting awareness of which are women SHGs. provides various products and services such as savings. These CSPs Financial Inclusion Your Bank has been at the forefront of Financial Inclusion initiatives in the country. Savings Bank cum To improve the quality of life of India’s crore RuPay debit cards to eligible Overdraft facility under PMJDY and rural population and to achieve total customers.6 lakh SHGs. ‘SBI Ka Apna these cards were issued in some of the Benefit Transfer for LPG (DBTL) Gaon’ Scheme of adopting the villages most challenging areas of the country.565 concept.973 crore community. your Bank is the market leader in Your Bank has mapped 1. characterized by small value transactions. programmes through melas and focus on the development of innovative. all these initiatives for their overall development. 2016 and issued 4. Continued customers with asset-liability products. payments. Your Bank is the pioneer in the Business Correspondent (BC) model.Collateral Managers to offer finance to Under the Pradhan Mantri Jan Dhan the rural populace has resulted in farmers against their produce stored in Yojana (PMJDY).217 crore in FY2016. installation of Solar lighting in of `5. to `58. As of 31st March. automated e-KYC. Bonding With Farmers 31st March. including accepting credits in loan exhibitions.32 crore accounts up to Immediate Payment Service (IMPS).426 villages have been adopted accounts has thus grown from 7. Your Bank has successfully leveraged technology for propagating Financial Inclusion by introducing Internet based Kiosk Customer Service Point. promising Clubs at village level. Your Bank has Payment Systems. remittances. technology enabled channels for accounts from customers residing in delivering banking services among remote unbanked areas. micro loans. an alternative for providing banking services to cater to both urban and rural customers.495 crore to 3. term deposits. The total number of financial inclusion 1. was initiated in FY2008. are seeds that will eventually usher in a Bank has also been forming Farmers’ The value of transactions handled cashless society ecosystem. the construction of hygienic SHG financing with a credit deployment villages to 52. Network vermi-compost units under clean village 2016. The BC model. amongst the most prolific implementers new initiatives like Aadhaar Enabled of the programme. Payments Bank and Small employment problem among rural youth During FY2016.607 Bank’s investment in equity of 14 RRBs in SBIePay. Your has also been added as a new channel 3. serves as the support and monitoring is the most sought after aspect of With the main objective of imparting point for these CSPs.Directors’ Report are linked to a nearby branch which Imparting Financial Literacy entrants.62 crore.419 265. enabled by SBIePay for online receipts Cheque Truncation System etc. areas. RRBs launched on 15th February. 160. and changing rapidly. socially and geographically challenged Regional Rural Banks (RRBs) As a Bank and a Payment aggregator. Rajasthan and entered they pass certificate examination on E.85 lakh account has already provided its aggregator for recovery of your Bank’s dues.40. through Digital India initiatives. 52 State Bank of India | Annual Report 2015-16 .60.855 financial Finance Banks are on the anvil. trainees have been gainfully settled. banks for providing seamless Internet India” campaigns. of Controller General of Accounts. imparted through Bank’s 116 Rural of Financial Literacy Camps State Bank Aggregator Self Employment Training Institutes Module (SBIePay) (RSETIs).688 candidates and 1. apps. these institutes are playing a Your Bank has sponsored 14 RRBs SBIePay has already partnered with 41 vital role in “Make in India” and “Skill covering 155 districts in 15 States. Payment systems. banking business on account of the financial literacy and facilitating growing penetration of smart phones. and skill development are being Exhibit 29: Cumulative Data on nos. Besides. on its Trained by RSETIs RRBs have implemented various cash less and less cash society aspirations IT initiatives such as RTGS. Other New into relationship with Assam. effective use of financial services by Empowering Rural Youth the common man. which Training for Debt Recovery have been implemented in Public of all Central Govt. of late. Kiosk Banking. IMPS. completion of mandatory training.688 340. National Automated Clearing House.000 BCs/CSPs have been imparted challenges in its traditional business has identified SBIePay for their online DRA training during FY2016. is `479. SBIePay and have covered 29. domain from new digitally enabled procurement payments. your Bank has set up e-commerce and launch of a good number of innovative products/mobile To mitigate unemployment and under 232 Financial Literacy Centres (FLCs). after Maharashtra. Gujarat. 2016 by the To supplement in-house resources have opened 68. trained with a network of 3955 branches. a total of 8. which Business Initiatives and Puducherry State governments. With its focus on C2G and B2G SBIePay is Exhibit 28: Rural Youth Candidates All RRBs are on CBS platform. FY2013 FY2014 FY2015 FY2016 RuPay Cards. Aadhar Payment Bridge System. well positioned to support the Govt.82 crore and its non-equity investment is `23. comprehensive. NEFT. Receipts and Bank is engaging its BCs/CSPs as Bima Yojna. Close Banking system is witnessing new Indian Railways eProcurement system to 5.688 NTRP (Non Tax Revenue Portal) Aadhar Enabled Payment System. Bank’s RSETIs have Banking options to the customers. The in the country. is given at Bank’s cost in RSETIs.378 207. ministries was Agents (DRAs) Sector Banks. Payments System) of the States of Debt Recovery Agents (DRAs). your holders under Prime Minister Suraksha services to GRAS (Govt.68 lakh accounts Honourable Finance Minister.840 programmes. Under PMJDY. free of literacy camps at villages across the competitive scenario is getting intense cost residential trainings in personality country were conducted by these FLCs. PayPal conducted 12. Despite some of these FY2013 FY2014 FY2015 FY2016 2723 7913 28879 37734 Your Bank is the first and only Bank to institutes having been located in the have its own payment aggregator services. bringing in more efficiency. The most important feature of the Programme is the ease of use through a Mobile App. customers earn reward points Vendor payments of Rajya Sabha. of Assam . Home Loans and Current Accounts. recharging of phone or D2H. IOCL & Gail Gas F. State Bank of India | Annual Report 2015-16 53 . Buses and Flights. Agri Business. of India. than 66% of your Bank’s Government pensioners including family & Galantry Your Bank envisions strengthening Business has been migrated to e-mode. booking tickets for Movies. Government Exhibit 30: Government Turnover Limited are some of the major PSU Government Commission Business clients of SBIePay for LPG refill payments (`in crore) Being accredited banker to the & new connections. long term association with your Bank. across a and transparency in the system. These reward points can be redeemed for a plethora of redemption options such as SBI Gift Card. payment through Debit Cards. In With a view to facilitate e-Governance & Enterprise Wide Loyalty continuation of its service tradition.State Bank Rewardz which can be downloaded from the Google Play Store. your Bank launched Enterprise Central / State Governments to migrate more than 40 lakh pensioners through Wide Loyalty Programme-State Bank their transactions to the online mode its 14 CPPCs. for their various transactions like Railways. Receipts and a leading Governments. period. NTRP which is enabled by SBI ePay for online receipts of all Central Govt.PSUs such as HPCL. Personal Banking. the reward points can be redeemed at select Merchant partner outlets as well. State Govt. Merchandise. SBIePay aims to FY2015 FY2016 major Central Government Ministries be the one stop solution for processing & Departments and most State Turnover 3555835 3993377 all online Govt. as also in the reduction of cash Migration of Salary/ Vendor transactions. More OROP arrears to 8. usage of Mobile Banking. Govt. To further improve customer experience. Demat Accounts. thereby facilitating the been administering pension payment to 2016. award winning pensioners for which its relationship with its customers by which has resulted in substantial your bank has been appreciated from recognizing their continued faith and reduction in the average settlement all quarters. your Bank continues Commission 1968 2095 player in C2G and B2G segment. payments to CMP: Migrating Salary/ Now. ministries was launched by the Hon’ble Finance Minister. following new Programme: State Bank your bank pioneered in developing initiatives were taken during the year: Rewardz customised e-solutions for The In line with our vision statement to Government of India and several State Pension Payments: Your Bank has keep “Customer first” during the FY Governments.04 lakh defence wide range of services availed by them. This year your Bank Rewardz to reward its customers for which has brought in more efficiency successfully disbursed first tranche of the unstinted trust reposed. to retain its position as the market leader in Government Business. Internet Manipur & Mizoram to CMP platform Banking transactions. your implemented. Other Direct Benefit Transfers: Your Bank has processed 12. Governments: 29 e-initiatives transportation costs. at the Corporate Centre for procuring facilitated online collection of fee of and the introduction of Outsourcing Insurance Policies for your Bank’s own major recruitment examinations & other Model for Stationary Management. In based stationery management is being of all non tax revenue of Govt. has also complied with RBI’s instruction over from in-house supply of stationery of India: SBI e-Pay has been integrated on Unique Customer Identification items to an outsourcing model of web with “NTRP Portal” for online collection Code (UCIC) to the extent of 99. The digitisation of AOFs aims e-pay. and reduction. 3. Showcasing Bank’s efforts to popularise “ Sukanya Samriddhi Accounts” – a new small savings scheme of Govt. project was launched in two Circles in Your Bank’s CPCs Redesign & Other March 2016. Efficiency and To attain considerable Cost Control standardisation in handling Govt.94 crore subsidy transactions involving `34797 crore during FY2015-16. of UP. Jharkand. Visa on arrival: this facility was Projects (erstwhile BPR Projects) enabled for Japanese nationals at 6 has been continuously working on For digitisation and easy retrieval of centres & e-Tourist Visa facility which the process changes and redesigns. obsolescence during FY2016. of India. management of storage. manpower and of approximately `50 crore per annum. This initiative is expected Bank has taken up the rationalisation e-Tendering Solutions: have to help in the reduction of costs presently of Currency Chests. an started last year with 44 countries has including risk assessment and Electronic Data Management System since been extended to 150 countries. saving a recurring cost e-Governance in State of stationery items.29 crore transactions. challenges posed for increasing the (EDMS) has been introduced during Visa fee is being collected through SBI efficiency and delivery of your Bank’s the year. assets at competitive prices with better dues for Govts. centralised and rationalised its Your Bank’s Insurance cell was created Online Fee collection: Your Bank purchases of registers and forms. Account Opening Forms (AOFs). CBSE . `21769 crore were disbursed through 112. Currency Chests (CC) have been closed Delhi Metro Rail Corporation. During the year. a switch- Non Tax Receipt Portal of Govt. Pilot rollout of the launched for various State Govts. of India on Rahgiri day at Bhubaneswar. Your Bank and enhanced efficiency.85 lakh Sukanya Samriddhi accounts (Highest among authorised Banks) More than 5 lakh new PPF accounts have been opened during FY2015-16. under which 105 been provided to Konkan Railways & being incurred on hiring of premises. terms of operating cost reduction. your Bank has further cost control payments. Direct Benefit Transfer for LPG: Your Bank is the sole banker to process LPG subsidy. Small Savings Schemes: Your Bank services more than 60 lakh PPF. various products and services. ordering in terms of reduced wastage efficacy in claim settlements. 54 State Bank of India | Annual Report 2015-16 . Tamil To get the optimum advantage of bulk terms and coverage for enhanced Nadu.Directors’ Report has brought in more efficiency & G.50%. Prasaar Bharti etc. Mumbai. As a result of the above initiatives. Hyderabad and Ahmedabad. The is centered on the Relationship Management concept and each client is mapped entire process has been carried out in to a Relationship Manager who leads across-functional Client Service Team.) Bank continues to efficiently manage a continuously increasing volume Facility Mar-15 Mar-16 YTD Growth of customer transactions by taking advantage of standardisation. Fund Based 2. the Wholesale Banking business was focused on proactive The HNG Float Glass Manufacturing Site monitoring of the portfolio given the State Bank of India | Annual Report 2015-16 55 . export finance. The wholesale banking ecosystem at your Bank comprises several teams focused on specific areas to facilitate specialisation and customised product offerings to your Bank’s clients. further centralisation of The Corporate Accounts Group (CAG) is the dedicated vertical handling the “large cheque book printing is in the process credit” portfolio of your Bank.29. In order to reduce the printing cost of cheque books and establishment cost Corporate Banking of LCPCs. transaction banking business. Kolkata. trade. transaction & commercial banking and rupee and foreign currency term loans. of rollout and has been implemented Delhi.to archive the AOFs electronically and challenging economic environment. The a secure environment at your Bank’s Relationship strategy is anchored on delivering integrated and comprehensive Base Security Printer. The business model of CAG for 8 Circles at 2 centres till date.778 3. while continuing to offer the FY2016-17 on a Pan India basis. such as working capital finance. comprehensive financial solutions to corporate clients with a focus on profitability and risk mitigation. The principal objective of the strategy is to make your Bank the first extra layer with two printers.138 5. your Exhibit 31: Business Performance of CAG (`in crore. Going forward. within a strict Turn- present process which involved an Around-Time.970 16% building and economies of scale. through structured products. while continuing to grow its commercial and retrieve the images at all 14 LCPCs. CAG has 8 Offices in 6 regional centers viz. specialises in analysing business and financial requirements of its clients and providing solutions through various products. During FY2016. replacing the financial solutions to clients.56.026 21% Corporate Banking Group The Wholesale Banking business at your Bank focuses on servicing corporate customers through customised financial solutions for enabling business in India and key overseas geographies. your Bank will look at sourcing This is expected to be completed during new businesses and generating new income streams. Chennai. skill Fund Based + Non-fund based 4. choice of top Corporates.71.27. Such initiatives Management are provided by way of include mobile versions of Corporate Internet Banking i. (including the facility of virtual account number). Collection for Public through their mobile. ‘Powerjyoti – Pre Upload’. which allow corporate users to initiate and authorize transactions Doorstep Banking). The platform will also be used for other Interest Warrants. While collection facilities are provided through ‘SBI F. NBFCs. our entire network of over 16400 branches is also made available to large Mid- Corporates.A. The whole spectrum of Cash Management Service encompassing Your Bank has continuously been working on promoting technology initiatives Collections. During the A. State Bank Anywhere cheque and cash collection (including – Corporate. etc. payable at Par (CCPAP) and Multi- city Cheques. Corporate Cheque ancillary activities related to credit management. Mutual Funds and Insurance Companies for Collections through certain specially designed products such as ‘Easy Collect’. Refund and including internal credit rating exercise.S. Around 85% of CAG exposure is to Corporates with ratings of Investment Unit has clocked significant increase Grade and above. Your Bank offers various e-Payment products through a secure process of dedicated portal with Host-to-Host facility.Directors’ Report Fund Based outstanding of the CAG constitutes 22% of total credit portfolio of your Vendor) Finance. while the distribution to a variety of sectors is well balanced.e. e-Collection available. Cash Management year. e-Payments. Payments and Liquidity for operational convenience as also to minimize operational risk. Arvind Mills financed by the Bank Transaction Banking Unit (TBU) Transaction Banking Unit (TBU) offers a range of products to Corporates. management of During the year your Bank has also stabilized the LLMS (Loan Lifecycle Management Mandates and other paper instruments System) platform. SMEs. In addition e-trade and various payment solutions are now Issues (IPOs/Bonds). The business of the Bank. Institutional Customers. The business has been growing over last three years. CAG handles about 58% of the domestic forex business of your Bank. the group handled several high value deals of top clients from both private Product (CMP) and public sectors. Government Departments and Financial Institutions comprising of products to facilitate Cash Management Products and Trade Finance and Supply Chain (Dealer/ 56 State Bank of India | Annual Report 2015-16 .T’ (Funds Available in Shortest Time) to Corporate and Institutional Customers through a network of 1854 authorised branches across the country by means of a technology driven platform. a web based portal for assessing credit risk in loan proposals like Dividend Warrants. during last three years. a number web-based portal. 182 Industry Taxes (CBDT). Bank Guarantees 289. Centralised e-Payment for Letters of Credit. Trade Finance CMP Centre is the ‘Sole Refund are fully automated. which was launched e-DFS platform.18 Delhi Division of Northern Railways.21 Departments to achieve their objectives trade finance services with speed and under National e-Governance Project efficiency by enabling them to lodge (NeGP). 2016. e-Trade SBI. has been 64%respectively. World has been further strengthened by financing their Supply Chain Partners through the above two products which B. As on 31st March. Banking Infrastructure of your Bank undergoing constant improvement to Exhibit 32: Growth (` in crore) in Cash Management Fee Income by providing Centralised e-Payment enhance customer comfort and provide Solutions enabling Government the means to customers to access 369. CMP has also started non-tax collection (b) e-VFS (Electronic Vendor for Government of India through Financing Scheme) Bharatkosh Portal. a been migrated to the electronic e-VFS/ Ministries under UMEA. State Bank of India | Annual Report 2015-16 57 . Civil Trade Finance business. CMP Centre has also established an excellent technology Majors (IMs) with 3867 vendors and brought about integration of payment and operation infrastructure for its 12993 dealers across the country have systems of Ministry of Defence. facility for Railway Station under the 2250 Corporates are registered under scheme ‘Rail Shakti’ Project has also e-Trade SBI.39 Railways commenced from CMP with and Bills Collection/negotiation 218. hosted by Controller Our relationship with the Corporate FY2014 FY2015 FY2016 General of Accounts. 2016. been extended to Indian Railways. Banker’ for Central Board for Direct (a) e-Trade SBI: Your Bank has As on 31st March. a growth of 115% and of State Governments with Core by your Bank in March 2011. secured and robust. requirements online from any corner Doorstep cash and cheque pick-up of the world. your the policy and regulatory framework the counter at all Branches and Mutual for financing infrastructure. CMB has (`in crore) sanctions aggregating received recognition as one of BSE’s FY2015 FY2016 top 3 performers (for the year FY2015) a total amount of in the Primary Market Segment (Debt Project Cost 167551 77227 `15. In addition oil & gas. Insurance Cos. a Specialized Branch at Mumbai caters to the Capital Market on new policies. Niti Ayog and redemption payments. Banks. cements. Urban Infra. have been extended ‘Easy Collect’ verticals for vetting their large ticket term of environment loan proposals.307 crore (CASA) as Bankers to an Business Performance accorded 30 new Issue (BTI). etc. Insurance Companies.Directors’ Report C. cement. projects in sectors like metals. Metro Project in Business Unit Project Finance & Leasing (PFSBU) Hyderabad besides a host of projects in deals with the appraisal and steel. In faced in infrastructure financing. the portfolio FY2016 largely due to a slowdown in of infrastructure projects under hydro & transmission). Model Concession non-infrastructure Agreements and broader issues being business clients and brokers. Oil coupled with implementation and include Power projects with aggregate capacity of 43. with certain to facilitating their Cash Management threshold on minimum project cost. implementation and control with PFSBU Roads & Bridges. coal. fund based and non-fund arrangement of funds for large projects dedicated vertical created for capturing based exposure aggregating `7. subscribers. During Financial Institutions Business Unit is a FY2016.50 MW. continued to remain challenging during As on 31st March. Project Finance & made to various Syndication 8845 18082 Leasing Amt. During FY2016. Road projects covering among others. It from financial institutions viz. 58 State Bank of India | Annual Report 2015-16 .249 in infrastructure sectors such as power. CMB has handled 119 Bonds/ FPO/ IPOs issues and mobilised FY2016.536. Financial Institutions Your Bank’s special business unit more than 5000 kms. by making available various Collection From the perspective PFSBU also provides support to other and Payment products . Capital Market the RBI with respect to lenders’ views infrastructure and Branch (CMB). also covers other non-infrastructure Mutual Funds. FY2016. During categories.090 crore in FY2015) were telecom. 2016. new project commitments by corporates. potential business opportunities crore (`12. ports and airports.848 crore (fund Public Issue Bids-Banks) and Primary Market Segment (Equity –IPO/FPO Project Debt 112981 59094 based and non-fund Bids – Banks) respectively. Telecom & Gas and fertilizers operational issues affecting ongoing Projects serving more than 190 million projects. inputs are Bank focuses on Funds have been provided with ‘Intra- day Limit’ facility for facilitating their also provided to various ministries of projects within both Government of India. sectors such as power The project finance environment (wind. These were Amt. roads. Sanctioned 19718 18125 based). In order to strengthen product for collection of premium over sustainability. Brokerage firms and NBFCs. disbursed to such projects. among others. your Bank Exhibit 33: Project Finance & Leasing `29. solar. Bangalore.03% Metal & Metal Products 12. Bank for a MCG Loan Portfolio (Non-Food Domestic) (`in crore) Corporate FY2015 2.46% Food Processing 3. MCG has grown in investment grade assets the go mainly in. Mumbai (2).17% Power 11.96% Engineering 5. Industry Wise Advance as on 31. including by way above `50 crore and upto `500 crore (Fund based and Non-Fund based).54% Mining 0.29% Sugur 2.12% Paper & Paper Products 1. Kolkata (2). Indore.13% CRE 4. Chennai (2).2016 Personal 0.27% Infrastructure 4.83% Transport 2.52% Cement 0.03.81% Chemicals 6. NBFC.33% Gems & Jewellery 3.99% NBFC 8.27.57% Others 6. Chemicals and Wholesale industries. A Smart 2016 with 20 branches in metro centres and 34 branches in other urban centres. and has 54 branches as on 31st March.28% Retal1. Stand-by Letters of Credit).59% Leather 0.59% Whole Sale 3. CRE.23% Drugs & Pharma 1. Chandigarh. The Group continues to partner in growth of its customers in India to Mid Corporate Banking expand their activities and provides them support for acquiring assets or With a view to focussing on midsize units having credit requirement for limit of companies overseas.59% Automobiles 2.30% Textile 10. your of loans to overseas subsidiaries and Bank’s Mid Corporate Group (MCG) operates through its 14 Regional Offices across JVs (backed by Letters of Comfort or Ahmedabad.756 FY2016 2.21% Agriculture 2.16% Ceramic 1. Textiles.32. New Delhi (2) and Pune. Hyderabad.14% Services 2.89% State Bank of India | Annual Report 2015-16 59 .638 India on During the year under review. International Operations International Banking Group (IBG) 20 North America Branches/Other offices Bahamas (1) USA (3) Subsidiaries California (9) Canada (6) Europe Branches/Other offices Rep Office Belgium (1) Washington France (1) Germany (1) UK (13) Africa Subsidiary Russia (1) Branches/Other offices South 1 Rep Office Africa(8) Italy Turkey Subsidiaries/Investment Mauritius (15) Nigeria (1) Botswana (1) Rep Office Egypt South America Rep Office Sao Paulo (1) 60 State Bank of India | Annual Report 2015-16 . International Banking Network of 198 Offices in 37 Countries East and South Asia Branches/Other offices Bangladesh (13) China (2) Hong Kong (2) Japan (2) Maldives (3) Sri Lanka (6) Singapore (7) Subsidiaries/JV Indonesia (14) Nepal (66) Bhutan (1) Rep Office Philippines South Korea Myanmar 19 119 26 12 Australia Middle East Branches/Other offices 1 Branches/Other offices Australia (1) Bahrain (4) Israel (1) Oman (1) Qatar (1) Saudi Arabia (1) UAE (2) Rep Offices Iran Managed Exchange Cos Oman State Bank of India | Annual Report 2015-16 61 . (8) corporates and Indian diaspora spread Offices of Subsidiaries/JV 110 5 2 113 across geographies. General 40 3 branches and 1 extension counter 38 Banking. your Representative Offices 8 . Operations.) Operations FY2015 Offices Offices FY2016 opened during closed during The International Operations of your the year the year Bank are guided by the overarching Branches /Sub-Offices / 69 7 1 75 Other Offices principle of supporting global Indian Subsidiaries / JV (7) (1) . Spread across 37 countries in all the continents. 1* 7 Bank also targets the local populace Associates / Managed 4 0 1 3 exchange Cos /Investments in line with its vision to become a truly Total 191 12 5 198 International Bank. a subsidiary of SBI has opened Resources. your A Smart Bank offices include 55 Branches. During FY2016. diversity in operating structures is a cornerstone of Globalised India on your Bank’s expansion activity. Brazil The Group has dedicated verticals Exhibit 28: Business (In US$ billion) through its subsidiary State Bank of performance of Foreign Offices in Credit and NPA management. 4 Indian Visa Application Centres in Bangladesh and upgraded Seoul Representative the go Office into a full fledged branch.Directors’ Report International Exhibit 34: Break-up of foreign offices (No. Bakersfield Branch of SBI of your Bank. 20 other offices. Human Limited. Global Presence The number of foreign offices of your Bank is currently 198. Treasury. Nepal SBI Bank 48 50 March 2016 and Overseas Subsidiaries. and Strategy to support the during this period. As such. Your Bank commenced its Representative Office functions in Sao Paulo. Dusseldorf Marketing extensive international operations Office of SBI. March 2015 Compliance. Net Assets Customer Deposit Credit 62 State Bank of India | Annual Report 2015-16 . In addition. your Bank has opened 2 new branches in United Kingdom. International Banking Group supports your Bank as well as its (California) and Abbotsford Branch of 14 14 major stakeholders through its various SBI (Canada) Bank were closed during business functions as detailed below: the year. * Seoul Rep Office in South Korea was upgraded to Branch. 7 Representative Offices and additional 113 offices of 8 Foreign Bank for a Subsidiaries. Retail India Servicos Limitada. Risk. Merchant Banking customers. and also through 4. South Korea Branch by Shri B. Financial Institutions been introduced in line with our strategy bilateral arrangements. Corporate Banking vibrant Trade Finance portfolio. IBG-Credit is responsible for building a quality loans & advances portfolio in the overseas branches. your State Bank of India | Annual Report 2015-16 63 . which Foreign Currency by Indian corporates Highlights was earlier being handled partly by by way of External Commercial Bank launched USD Travel Card at Global Market Unit Kolkata (GMUK). Sriram. International Chamber of 5. MD (CB) with considerable Indian diaspora. Institutions Group to consolidate the Your Bank facilitates raising debt in Correspondent Relationship job. Relationship Management Concept in conjunction with other Indian and for Banks & Financial Institutions has Foreign Banks. IBG Retail & Remittances Through specialized remittance products your Bank enables a ‘window to India’ for NRIs residing in different corners of the world. include bilateral & syndicated loans.Corporate Bank also engages in retail banking Highlights activities for both Indian as well as local Redesigning of Financial 1. on the one side and 14 Bilateral Loans aggregating facilitates synergy between IBG and facilitates and supports your Bank’s US$ 3. Global Markets etc. Highlights Introduction of Loan Lifecycle Management System across Foreign Offices for prompt monitoring and better control and supervision of loan accounts. Agencies and Developmental Financial 9 Syndications aggregating US$ Institutions. Foreign Govt. The loan products inter alia. Borrowings through syndicated deals its Maldives Operations. In some countries Inauguration of our Seoul. This is achieved through a range of loan products.510 billion to Indian corporates other Business Verticals such as Mid Foreign Offices in maintaining a on a bilateral basis Corporate Group. Global Trade Department 2. GTD Group.674 billion Global Trade Department (GTD) Commerce etc. Group SBI is in the process of acquiring a Highlights The Group facilitates linkages of your CRM solution to have a 360° view of the Premier Mandated Lead Arranger Bank with international stakeholders viz relationship with Banks/FIs and Book Runner during the FY2016 Correspondent Banks. IBG-Credit other side. to adopt the best international practices. on the formulates policies and innovates new 2. Creation of Japan desk at New Delhi to promote Indo-Japanese collaboration 3. specialised outfit.29% Your Bank completed its multi- of IBG’s Net Customer Credit.377 International Banking . offering tailored products to the likes. Regulators Anti-Money Laundering solution implemented and a complete rollout (AMLOCK) implemented across Your Bank is committed to the policy of across all countries expected by zero tolerance of non-compliance with all geographies which automated December 2016.619 foreign currency into a simple virtual organisation that in synergizing Domestic and Foreign appears ubiquitous to every customer. IT Initiatives remittances through your Bank. unforeseen peak loads. country migration from Finacle 7. 2016 was US$ billion received globally. your Bank has in Trade Product offerings viz. Laundering.361 online inward remittance The initiatives taken at Overseas Trade Finance assets outstanding transactions amounting to US$ 6. networks and Risk Governance Structure covering infrastructure to dynamically manage Global Link Services (GLS). 14. During FY2016. addressed on priority basis. which is a single point of contact wealth management and enhanced To combat Trade Based Money for all the Foreign Offices as well as mobile banking solution. cheque collections aggregating to US$ offices for maximizing returns. needs and preferences. (UK) was launched in also responsible for monitoring timely China and Maldives enabling customer’s Finance intensive Foreign Offices. Regulatory concerns Pelican software has integrated/ SBI has been adjudged as The identified by regulators/auditors are automated Watch-List Screening to Best Trade Finance Bank-India by optimize KYC norms. FIG.Directors’ Report products as per changing regulatory Highlights limits are monitored and reviewed on norms and market demands. International Banking . (Internet banking solution) extended to Cheque collection and online inward Country-wise and Bank-wise exposure two more geographies viz. 14. GLS (on behalf taken a holistic approach to innovate of Credit. IBD is from Misys Plc. rolled out an additional Correspondent Banks for all matters Trade Finance Solution. regulatory guidelines in all its overseas processes through digital alerts. Bahrain and remittances. ACE operations. which Offices during FY2016 was US$ 10.6 to based business done by our Foreign Domestic Finacle 10. takes lead in introduction of new Companies and seven Banks in Middle- technologies to improve service quality East Countries for channelizing inward 9. (FinAssure) covering all 24 geographies which monitors performance of all 6. As a truly Digital Bank. a domestic and international operations. caters to centralised A country Risk Management Policy in The much admired onlinesbi processing of Export Bills collection..577 processes to capture and convert data remittances. all Trade Finance requirements at solution acquired during FY2016. Pilot Foreign Offices Country China and Maldives since 8.Domestic will support a wide range of APIs (IBD) is a new department under (Application Programming Interface). Bank Guarantee and Trade of domestic branches) handled 67. Global Link Services Your Bank has adopted an Independent critical applications. Loyalty programme covering 64 State Bank of India | Annual Report 2015-16 . Letters During FY2016. GLS handled Highlights 99.69 Offices are: as on 31st March.e-Trade screening solution across all Trade relating to domestic IB business.08. Non-fund 7. billion. plays an important role export bills and 65. GTD Tie-up with 31 Exchange regular basis. Committee of the Board.39 billion. submission of all RBI returns and interface with online 24 X7 portal for State-of-the-art Trade Finance fema compliance.2 in 24 countries. accounting for 36. tune with RBI guidelines is in place. Status of Global Finance Magazine for the fourth remediation is placed before the Audit Bank implemented a predictive tool time in a row in January 2016. Botswana.614 billion. 81% and tracking customer stickiness for Fresh Slippages 31. book income on such assets and they have to make provisions as per IRAC Delay in realisation of receivables Advanced Anti Skimming devices and norms of RBI.75% 4.763 Document Management Solution to Recoveries in Written-off 1.359 2. Bank Exposure and Country Exposure State Bank of India | Annual Report 2015-16 65 .12% 3. Out of Rising NPA levels and fresh slippages Delay in the resolution of NPAs zone concepts and PIN based debit card across sectors can be attributed to the through legal proceedings. Gross NPA 51.011 6. Banks cannot Aviation.924 13. the stress faced by the the choice.1% 2. initiated: obtaining Govt. problems in land acquisition and supply side Enterprise Project Management constraints. Chief General Managers overseeing the entire effort. approvals. It is headed by a Deputy Managing Director with two International Banking Statistics (IBS). and the Less than provisioning. Power. With the economic adequate pick up in domestic growth recovery prospects appearing weak in Everything.993 41.543 2. Accounts Generation of regulatory and other reports directly from core data As part of focus on resolution / recoveries of NPAs. Stress in important sectors such as and confidence to customers. Exhibit 35: The Movement of NPAs and Recovery in Written-off Accounts Bank level CRM solution to improve (`in crore) deep understanding of customer needs and behaviour. Cash Recoveries / Up-gradations 14.985 Bank has begun using Private Cloud selectively and has plan for Write-Offs 5.725 98.95% 4. cashless transactions. authorisation have been implemented following factors: in all geographies. profits of your Bank reduced continuously reworking to initiate the negative spill overs from global considerably on account of higher various technologies such as Internet of financial markets.57% 2. comfort facing the Banking sector today.25% 6.066 1. with EMV cum Magnetic Stripe Cards.173 Big data analytics to help deliver Gross NPA% 4. due to subdued demand.885 17.516 29. (NPAs) is one of the biggest challenges Labour laws constraints and the To provide best of security. utility and experience. terminal security. Steel and replaced all magnetic stripe cards the bottom line of banks.198 successful customer retention. Your Bank has Stalling of projects due to Banking sector is likely to continue for a infrastructure bottlenecks. Bank Increasing NPAs adversely impacts Textiles. the short term.859 capture its records digitally.176 21. requiring very little FY2013 FY2014 FY2015 FY2016 remote support.189 61.594 13. With five Regional Offices. tool where every IT project is tracked.313 15. Consequent upon the Asset Quality Reduced market confidence due to Review (AQR) exercise conducted Bank’s Digital Banking strategy is the slowdown in the global economy. Sugar.444 64.debit card usage and Remittance Stressed Assets Cancellation of coal blocks and the limited off-take of power by Discoms through INB was launched in Singapore Management (Power Distribution Companies) given to promote digital stickiness and Management of Non Performing Assets their reducing purchasing capacity. Open Banking to enhance and declining exports. Stressed Assets Management Group (SAMG) continues to work as a dedicated and specialised vertical for efficient under ADF (Automatic Data flow) for resolution of high value NPAs.50% products on customer preferences Net NPA% 2.605 56. delays in few more quarters. by RBI. Mobility and Wearable. SMS alerts. The Loan resolution week strategy for controlling fresh accretion (LRW). identification of Advocates. It enables effective information on NPA / AUCA accounts Mega e-Auction of large number of management of existing and new and their movements. single point storage and timely SAMG has turned into a centre of Initiatives & efficient retrieval of documents. Loan portfolio is monitored on an properties put up for auction. Account Tracking Centres have authorities at appropriate levels and action can be taken preventing their been set up to prevent accounts slipping relevant forums like Gyan Sangam. Early Warning System (EWS) is a 3. the event was with appropriate strategies for time credit processes. and resolution of existing NPAs. The NPA1 PORTAL enables the Branches (SAMBs) and 44 Stressed monitoring of recovery by the Stressed Assets Recovery Branches (SARBs) Asset Branches on daily basis and 1. audit trails. Electronic Document Management a General Manager AUCA exclusively constraints. For the various constraints. It has been rolled NPA. a nationwide Bank Adalat was hearings are attended by our officials. IBA. Despite these 4. accounting (AUCA) and a General Manager S&R reports. properties on Pan-India basis. Loan Life-Cycle Management 1. software that enables early identification others. initiation legal cases. the form of legal hurdles. store contact details of of criminal actions. It also provides a and thus gave first mover advantage Bank in respect of all Loan (NPA/ single point repository of standardised to your Bank in areas like arranging AUCA) accounts. as prescribed by your bound action to prevent slippage as internally monitored by setting-up war Bank. It enables evaluating viable CDR proposals. Litigation Management System across the country. all actions initiated for System (EDMS) is an electronic for management and resolution of resolution are constantly followed up depository of important documents. Industry wise exposure limits expedite recovery and reducing NPAs. for expeditious resolution of NPAs. lack of buyers for 3. among others. 2.Directors’ Report each headed by a General Manager. Early diagnosis of the problems and Besides giving wide publicity through System (LLMS) is the online credit nationwide advertisement through analysis of the reasons for irregularity. Valuers. processing software which handles all print and social media. out in all the SAM Branches and helps Despite making concerted efforts to in generating dynamic MIS reports. monitoring the account right from have been set to diversify profile and your Bank often faces impediments in inception. end-to-end. into NPA category. Taking “SMART” secure. Recovery Agents un-encumbered properties of the ACTION PLAN FOR etc. Advances Under Collection Account and strategies are periodically reviewed transactions. rooms at administrative offices. workflow processes. etc. 66 State Bank of India | Annual Report 2015-16 . The monitoring through LMS for attachment of properties before Your Bank has adopted a twofold system has ensured that all court judgement. excellence in the NPA resolution effort of your Bank. and track expenses incurred on borrowers / guarantors and arranging MANAGING NPAs them. As on March 2016. your of potential stressed accounts before Bank has approached the concerned they become delinquent so that timely 4. Besides initiating dissemination of comparative recovery (LMS) deals with all the cases that hard recovery measures. SAMG The Stressed Assets vertical has taken has 19 Stressed Assets Management the following technology initiatives: 5. SAMG position of each branch amongst the introduced certain innovative methods have been filed for and against your entire field force. Controlling Fresh were advised in writing well in advance Accretion to NPAs: to come for negotiated settlement. 2. unavailability of strategic investors. among ongoing basis. & CDR for handling Sale to ARC and compliance documents. A. further deterioration. conducted over a period of one week in advocates and hearings outcome also May 2015 and all over NPA borrowers gets recorded instantaneously. minimize risk. SME and liaise closely with DRT officials. Entering into One-Time Settlements NPAs. being put up for auction. and AGL accounts. Publishing photographs of accounts (SMAs) in Retail segment and making last mile recovery efforts. 15. and other Courts. A system of Tele-calling/ personal 7. 10. reducing debt and improving viability. State Bank of India | Annual Report 2015-16 67 . Assets Tracking Centres at Circle promoters as Willful Defaulters and borrowers under stress to sell non. Improving Resolution of 9. It also over these properties. Properties available for auctions up. to trace out unencumbered assets 5. warranted. space is taken in shopping NPAs: increased transparency and better price malls in the prominent locations. measures do not fructify. stressed assets. Engaging investigation agencies SMS. Tracking & Monitoring (AT@M) with borrowers. strategic investors for takeover of out health check on the existing etc. customers and follow up for recovery. recourse to higher 11. Involving Business Correspondents. CLOs / Law Officers / DGMs / of promoters and guarantors and AGMs attend court cases to personally 22. 6. Arranging Bank Adalat and actively 13. RBI guidelines.5. CRIF Highmark. Supreme Court. your obtaining attachment before judgement monitor advocates performance. possession of properties mortgaged granular drill down up to account level. are also showcased in “Property Mall”. to your Bank and arranging for their It covers monitoring of SMA as well as 4. to 1. Equifax. Sub Standard accounts in PER. e-Auction” every calendar quarter. An SMS is sent Lawyers’ meets are conducted and the 14. Your Bank is also positively merits of the case. Nodal officers monitor DRT Cases auction. done at regular intervals. Identifying and engaging with exploring CIBIL’s proposal of carrying courts like High Court. 2. Business Facilitators and Self Help 21. Using Resolution Agents to take to have a common view along with participating in Lok Adalats for recovery. 8. Review of NPAs at various levels is 18. B. defaulters in newspapers where Real Estate sector. software enables all stake holders 3. Persuading Large Corporate 23. dilute their shareholding accounts (SMAs) in SME and agri on the websites of Credit Information and bring in strategic investors thus segments by making calls on the Companies such as CIBIL. Identifying Companies and 17. Experian. to all customers at Risk Grade I level performance of advocates is constantly followed by a reminder by way of an monitored to expedite DRT process. Bank has tied up with GE Capital for signals a strong intent of your Bank proactively making calls to stressed towards battling out the cases while 16. In cases where soft recovery realisation. Sale to ARCs is also explored in Filing suits in Debt Recovery Tribunals select cases. E-auction has been introduced for wherein. Considering Debt Asset swaps in some cases. Strategic Debt commercial and consumer portfolio with Restructuring (SDR) option is also explored in select viable cases as per the aim of improving our Asset quality. is also taken. To prevent slippages. level track and monitor probable NPA arranging for display of their names core assets. legal action is display pictures/videos of properties initiated like action under SARFAESI. is being followed on default of overdue installments / irregularity in accounts. BIFR cases are closely followed 19. AT@M: The web based Assets Groups in recovery of Agricultural 12. Your Bank organises “Mega contact/ SMS alert/ sending notices etc. Depending on the 20. while profit from sale of investments also soared 44.5% YoY maintenance of CRR and HQLAs for in FY2016.6 recording an increase of 49. Your Bank maintained its preeminent position in the forex segment. But your Bank 7500 continued to beat the benchmark 6500 through well timed entry-exits through the year. your Bank made timely investments in select papers during FY2016.19% YoY to over Liquidity Coverage Ratio (LCR).5 7.86% 8500 in FY2016 despite a sharp recovery 8000 in the month of March. SBI has started placing Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 our equity market trades through online 68 State Bank of India | Annual Report 2015-16 .Directors’ Report Treasury Operations Your Bank’s Global Markets Group is responsible for managing your Domestic Bank’s SLR portfolio. Your Bank was 7. last year. Interest income increased 20.59% YoY in FY2016. compared to 7. down only 30 basis points in FY2016. 2016.78% till as late as 28th February.1 compared to a more than 100 basis 8 points drop in FY2015. 2015.9 still able to use the temporary dips to 7.2 available in the Corporate Bonds and Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Commercial Paper markets.3 to benefit from the opportunities 7. we continue to save costs through more efficient management of CRR compared to the Exhibit 37: NSE Nifty 50 industry average. the tailwind from falling yields with profit from forex and derivatives growing above 19. recording a profit growth of 6000 4.76% on 31st March.4 To improve our portfolio yield and 7. 8. Benchmark 10 year G-Sec was trading at 7. portfolio. as well as Your Bank’s treasury.46%. In the area of liquidity management. 7. Further.7 book profits in the interest rate portfolio 7. has given another creditable performance this year. It was only in Exhibit 36: 10yr G-Sec Yield (%) the month of March 2016 that yields came down to close the year at 7.5% in FY2016 from the was not available this year for the Bond same period last year. 9500 The equity portfolio faced significant headwinds this year as benchmark 9000 Nifty index was down nearly 8. Unlike `4900 crore.27% over FY2015. despite liquidity management which includes relatively unfavourable market conditions. in 5500 order to improve transparency and risk 5000 management. 2 billion The Global Markets Group provides Our Regional Treasury Marketing India-focused PE fund. an internet based Forex State Bank of India | Annual Report 2015-16 69 . The fund invested in hedging risks through options. Tower. Markets’ Kolkata office. called Bank has also taken steps to increase monitoring and execution of orders. set up in 2010 partnering exchange and derivatives business while helping them choose a mix with State General Reserve Fund of continued to contribute handsomely to of products to suit each customer’s Oman. Your and SGRF) have decided to launch the use of technology. streamline your Bank’s large global Management System. and provides FCNR(B) loans and house macro-economic and market Export Finance in foreign currency for research teams and provide customers The Oman India Joint Investment Fund PCFC/EBR to the customers. Foreign with inputs about market developments (OIJIF). marketing team and has commenced exit and 1 partial exit from the investee dealing with a number of FPI clients to companies. helps in risk mitigation. JV set up with Macquarie and IFC in 2008. increase in profits despite the fall in Bank has formed a new Inter-Bank Moreover. Hydro FCNR(B) deposit corpus of your Bank They are well supported by our in power and NHAI road assets. This year. Airport. The group also manages regular interactions with customers. the System. Majority of the deals / transactions have forex operations. As mentioned last year. reporting a 19. To make it even more State Bank organized “State Bank Synergy Cup 2016” convenient. your for Fund-I worth US$100 million. has been provided through the use of IT in its Treasury Marketing system enables us to execute orders www. spot and forwards. The platform enables customers to book forex rates to hedge their exposure in USD. EUR and GBP. an online forex rate booking platform on 18th June. your Bank launched “SBI eforex”. swaps Foreign Exchange dealers through infrastructure assets viz.trade routing system. both the partners (SBI improve customer experience through our strengths in the FX market. which will allow them to initiate forex remittance at their end without having to route it through a forex authorised branch. EUR & GBP with inbuilt limit monitoring mechanism. has invested foreign exchange solutions to customers Units provide the necessary marketing approximately 96% of its total capital for managing their currency flows and support to our Fixed Income and commitments. the Fund has made 1 full country’s trade volumes. the platform also enables customers to view their entire hedging position with your Bank. This “remXout”. Thermal Power. in turn. Based on the success In continuation of our endeavour to leverage our large debt portfolio and of Fund-I.5% specific requirements. to manage the US$ 1. to an automated Lead Reporting and which. Further. has completed its investments profits of your Bank. an integrated Global been migrated to the online trading Back-Office has been set up in Global In the Private Equity / VCF space.onlinesbi. your Bank has completed the roll-out of ‘FX-Out’ to all its branches in multiple currencies. Apart from booking the rates for cash. 2015.com for remittances efforts through the implementation of with minimum intervention from brokers in USD. which allows outward remittance facility. Telecom and forwards. Organisation as well as Coal Mines Offices were: Provident Fund Organisation with During the year. US$ 11 million during the same period. Your customers of other banks/FIs as well as Bank also earned Divestment Income of During FY2016. Portfolio Management Services borrowings. adequate liquidity its own customers on the platform. bilateral loans and loan Till date Sponsors have committed US$ increased SBI’s AUM by 1. improving processes Medium and Long Term Syndicated to serve as an exchange to facilitate and reaching out to customers. multilateral agencies NSE subsidiary) promoted Trade Medium Term bilateral loans from Receivables e-Discounting System In addition to our continuous efforts in Correspondent Banks.Directors’ Report Fund-II with a corpus of US$ 300 million. Investment Portfolio stood at US$ 5. The proposed systems in place.SBI Team with RBI Governor. earning US$ 192 million Interest bid for financing the Bills put up by the International Income from these investments. Raghuram Rajan & guests 70 State Bank of India | Annual Report 2015-16 .732 crore. Your Bank’s internal Repo arrangement platform will support multi-financier auditors have recognised these traits by Lines against Bankers’ Acceptance bidding for invoices through market awarding the Global Markets Group top determined rates for factoring the scores in the recently concluded audit For FY2016.2 billion for tying up the remaining amount is in been re-appointed as fund managers which matured during the year. will exercise.69% YoY from supranational entities to replace 200 million to Fund-II and fund raising to `3. once set up. SBI has committed highest fund management share Long Term bilateral loans from to invest in the SIDBI-NSCIL (a of 35%. the international treasury invoices.551 provide an opportunity to your Bank to million. SBI PMS has MTN bonds of about US$ 2. The platform. It is a platform that aims making profits. Dr. With this. Some process. (TReDS). was arranged through Syndicated Reception for the dignitaries participating in the Annual World Bank Group – IMF meetings – 2015 at LIMA. Fund-II is expected for Employees’ Provident Fund of the sources of liquidity at Foreign to be launched shortly.22. your MSMEs to convert their receivables to bank has advanced risk management Loans cash before maturity. All the employees are being judged on the basis of their performance. Human Resource them through training interventions. Total 222809 213238 207739 Towards this end. workshops. assisting in the career development of the employees by providing a scientific and and Training objective approach to measure their performance. as detailed below. your Bank has introduced a new system of performance diversity of group /interests. a host of important initiatives. recruiting young and highly qualified candidates in large numbers. All these Your Bank believes that Human have contributed significantly to generate a highly satisfying working environment Resources Management is an wherein the employees feel happy. People are the putting in place an organised structure for skill and capability building in critical Most Valuable Asset positions and by implementing various measures for talent retention. The entire system is IT driven.IV. 1. effectiveness. your Bank has taken The leadership has been very proactive in employee engagement which is critical some important measures to meet the for your Bank to sustain growth with profit. improving Career Development System (CDS) the working / service conditions of the employees representing a wide During the FY2016. This has been borne out by initiation of business challenges. seminars. the Bank has been making constant endeavours Exhibit 38: SBI’s Workforce Strength to improve the functioning of HR as a Category 2013-14 2014-15 2015-16 strategic business partner by nurturing Officers 80531 78540 80818 its loyal and dedicated employees Assistants 101648 94455 88606 who have made significant and lasting Sub-staff other 24799 23404 21477 contributions towards achieving your Watch & Ward 15831 16839 16838 Bank’s goals.1. These scores provide the workforce input for Promotions and other Rewards and Recognition. engaged and enthusiastic about their work and important facet of organisation’s take positive action to further your Bank’s business interests and reputation. All the A Smart employees of your Bank have been assigned KRAs and almost 90% of the positions have been made budgetary Bank for a or measurable. Accordingly. during FY2016. incentivising the top performer. Support & Control Operations 1. video-conferencing. State Bank of India | Annual Report 2015-16 71 . re-skilling appraisal (re-named as Career Development System) of individual employees in an objective and transparent manner. The system extracts business data required for the KRAs and Passionate calculates scores. which include. on the go The system also has provision for capturing the developmental needs of the individual employees through competency assessment. productivity and Employment risk mitigation. members in prevention / detection / Settlement foiling of frauds and Near Miss Events On 25th May. To strengthen the to female officers upto the grade of as on 31st March. by way of perceptible increase of more to determine the manpower Chummery accommodation than 14. upto the level of General Manager. where premium will be borne by the members. Group Medical Insurance for has already been provided to women 2012) with representative Unions. Moreover. as . 160 young Scale V. pride in one’s own job. The Indian Banks Employee Engagement which have operational risk with Association (IBA) signed an industry Sabbatical Leave: In view that potential to cause serious damage. where and all other Saturdays have been has been introduced by making a premium will be borne by Bank. Liaison by the management. 2015 to `1411 lakh types of branches. 2016.for alertness of staff enhance in-house knowledge. providing stipulation of mandatory availment of ‘B’ will cover future retirees and non- much needed relief to employees with leave for ten working days in one go by members of SBI REMBS with eight family responsibilities. retired employees: Two separate and Single Men employees. This is strengthening employee engagement recruited as Management Trainees on designed to facilitate their completion through enhancing job satisfaction and short term contract. who are posted in Rural / a view to improving productivity and graduates from 23 top ‘B’ schools were Semi-Urban / Urban areas. Note (effective from 1st November. the staff members. 2015. Policy declared as full working days. in each financial year. Representation in This leave will serve the purpose of increasing efficiency. Wealth Management Specialists. Bank is also recruiting on lateral basis Alertness Award: The scope of have been re-designated as Associates in certain specialised positions. on grounds of in the employees’ customer interaction looking after family and health.34% in the level of Business per requirement in branches in order to for women employees : Chummery employee of your Bank from `1234 lakh provide optimal staffing across various accommodation has been provided as on 31st March. Employee Productivity Bank provides reservation to Scheduled Flexi-Time Scheme : Your Bank Improvement Castes. As part of the settlement. Group Medical Insurance Schemes Leave has been extended to Differently following which a 15% wage increment have been made functional to meet the Abled employees & those having was decided to be given to employees medical needs of Retired Employees. lakh to `25 lakh. with human resource pipeline. This and corresponding improvement 72 State Bank of India | Annual Report 2015-16 . With infusion of new blood by way of directives. enlarged for Recognition & Rewards Risk Management and Compliance including cash ranging from `5000/- specialist and information technology to Bi-partite Settlement & Wage to `200000/. clerical cadre support the existing efforts of your Bank free environment. there effectively redress the grievances her own work hours within limits laid has been noticeable attitudinal change of the SC / ST employees. 2nd and 4th members with enlarged coverage of Saturdays have been declared holidays Vacation Policy : Vacation Policy diseases and mode of treatment. This Recruitment measure with the objective of creating has been amply vindicated by the an employee friendly environment and improvement in productivity indicator A scientific model has been developed promoting healthy work life balance. Sabbatical Associations of workmen & officers. with its attendant benefits. such Alertness Award Scheme has been (Customer Support & Sales). level Bi-partite settlement / Joint this facility. Policy ‘A’ will cover existing SBI REMBS children and / or spouse. These officers will of mandatory assignments in a hassle. In order to deal with issues hour scheme on a limited scale where recruitment of highly qualified Gen-Y relating to reservation policy and the employee is free to select his / employees over the last 4~5 years. of the total workforce in your Bank.Directors’ Report Manpower Planning & facility has been extended as a welfare in services across branches. employees. posted in sensitive plans of insurance ranging from `3 positions. who constitute nearly 43% to augment skills in specialised area. Scheduled Tribes & Persons with Disabilities (PWDs) as per GOI has introduced flexi-timing / flexi. Differently Abled dependents viz. Administration and Soft Skills.85%) (06. Sexual Harassment of Women were filed.52%) consultations are carried out at both (25. as well as at TOTAL 2. New Sub-staff (W) techniques. the number of women employees in the total workforce 1.882 (01. The training system 2757 2987 3188 functions under the overall supervision and guidance of the STU. Leadership. Clerical .91%) the Corporate Centre.82%) (08. proactive over last 3 years Total Women Officer (W) training process for individual growth 222809 207739 213238 Clerical (W) and organisational effectiveness.648 198 (00.944.772 (02. 27 Complaints of Corporate Centre at Mumbai. our Exhibit 40: Composition of Women Employees Total Bank continues a planned.757) which constitutes 21. areas of Banking.93%) (07.818 13.46% 21% 45132 20.12. Ethics.996 912 (01. of which 23 cases were disposed Exhibit 39: SC/ST/PWD Representation in Employment off during the same period. State Bank of India | Annual Report 2015-16 73 . Category Total SC ST DIFFERENTLY ABLED PERSONS Industrial Relations Your Bank held regular consultative OFFICERS 80. Training Unit In a quest for becoming an organisation which is a great place to work. in addition to a robust digital learning system. Various issues raised by the (18.13%) meetings with the Associations (16.28. Sexual Harassment Your Bank has been able to create a Your Bank has a zero tolerance towards sexual harassment at workplaces and has virtual Knowledge university within the put in place an appropriate mechanism for prevention and redressal of complaints institution.Officers have been designated at all Local Head Offices of your Bank as also at the During FY2016.07. Strategic of your Bank is 44.07. These SUB-STAFF 38. Marketing.739.542 2.42%) and the Unions as part of having a ASSISTANTS 88.884.018 7.91%) and addressing grievances of various categories of employees.96%) Federations were examined on their merits and necessary actions were taken for their resolution. Sub-staff -2. with a capacity of classroom of sexual harassment at workplace so as to ensure that women work with dignity training of 3350 employees per day in all and without fear.39%) Circles. transform employees into knowledge workers so that they can carry 44700 44585 21.46% of the total staff strength of 2.681 5.604 16.25% forward our initiatives towards creating 28944 30102 31224 12884 11701 10720 customer delight.00%) constructive dialogue for understanding (15. The training 2015-16 2014-15 2013-14 apparatus at present consists of five Apex Training Institutes (ATIs) and 45 State Bank Learning Centres.315 9. and methodologies are being imported from all corners of the globe to establish a virtuous circle of teach/learn/teach/learn to enhance quality.10%) (07.585 (Officers.2. 2016.606 14. Women in Total Workforce As on 31st March.739 37. Economy.898 1.905 2. during FY2015. your Bank’s an “Aarohan Continuum Capsule” growth. which is more cost Mentoring of Branches: Certification. 600 with the customers of the Branch and called “SBI STEPUP”. Our Bank has a Learning Centres (SBLC) in terms of activities: tie-up for business content across 44 Training Resources. taking the total tally to 27 To ensure continued focus on improving effective and convenient in the long run. 138 One Day Workshops Constant upgrades of our training been assigned 4 branches each. enthusiasm generated during Aarohan. are available on the portal. This is being e-lessons of 50-60 minutes duration. notionally steps away from system actively promotes strong values e-Learning: In order to inculcate a his administrative role and looks at in their programmes. Currently there are 724 active and also for building a team spirit e-lessons) and 601 ‘Mobile Nuggets’ mentors covering 2869 branches. besides the Case Studies. officers are also being coached to has been designed and programmes to help the team in realizing their develop their physical and financial have been conducted through Visiting full potential. Deputy and to reduce the gap between Campus Business Units. To evolve a strategy for raising the Bar with current corporate priorities of the top executives of your Bank. service on a consistent basis SBI has A robust e-learning platform to drive initiated Mentoring of branches and this efficient e-learning is fully functional. with the result Retirement”.48 lakh tests Probationary Officers to clear their doubts and to keep them updated at all times. health. Aided with a strong set of During the mentoring process. Training Initiatives is more than the traditional understanding Training programmes aligned of Mentoring. improvement in customer service. General Managers and above. to help branches achieve business With technical knowledge. Associates. have been passed by the employees. Harvard Manage Mentor is an online During the year. Infrastructure and management topics and is mandatory for Academic Activities. on Soft Skills by External Finishing content and delivery. citizens. which leads to Joint Bank has made tremendous progress from on-boarding – to “Transition to Certification between SBI and HMM. enables the branch team to evolve used for both employee engagement 412 ‘e-Capsules’ (short duration solutions. performance support & Strategic Training Unit was completely Your Bank constantly strives to achieve peer collaboration platform from the revamped to form the epicenter of where quality standards for its State Bank 74 State Bank of India | Annual Report 2015-16 . related to technical and administrative It focusses on the Commercial Credit out of 90 lakh attempts. 28. learning to be at Schools / Institutes were arranged par with global best practices being The primary objectives for the first time for Newly Recruited tried. The mentor also interacts batch of Probationary Officers (2015) e-learning platform “Gyanodaya”. SBI has developed a robust perspective. that. the training LEARNING DIGITALLY mentor. 23 SBLCs were A culture of self-learning in the accredited with the ISO 9001:2008 organisation. activities in the initial days. Research Projects Certification Programme on Credit has A programme called ‘SBI Buddy’- and e-publications under the e-library. Your Bank has culture of self learning amongst our these Branches from a developmental also started a facebook page for new employees. been launched for officers of Scales I ‘SAATHI’ has been started to allow to V to develop adequate credit skills During the FY2015-16. in this endeavour. Skills required to handle the entire Loan Life Cycle of Advances. This enabled an exposure behind branch mentoring are: to the challenges and demands of the In order to rekindle the energy and to help branches achieve sustained real world. SBLCs till date. accredited centres out of a total of 45 and delivering improved customer is being promoted. This year your A continuous process of learning Senior Executives.Directors’ Report Principles that drive learning Harvard University. amongst new recruits. In your Bank’s scheme. the website of the learning. our Mass Awareness Programme. so that they can be contributing Faculty Scheme at branches. have to Corporate. the Principles and Ethics. Shri Manab.00 158 opened up its training system to other 100. the STU has imparted training sessions on Time Management and Stress Management for Staff members of some of your Bank’s foreign branches.00 189 inclusive and global. 73% of VI / HI Provision of Employment to Persons with Disabilities (NCPEDP) for the Category Employees (Other than Sub-Staff) have “Role Model Company / NGO / Institution for its commitment towards promoting received training during the year by equal employments for people with disabilities.00 300. Different Abilities in a systematic way. during the year. empowerment and levels have improved considerably and he now attends to 200 letters a day on upgradation of skills of people with an average. State Bank of India | Annual Report 2015-16 75 . Inclusion of visually/hearing impaired employees During the year. an Inclusion Centre for Differently Abled Employees was created.00 150.00 18 other Govt Departments. It was inaugurated by Hon’ble Shri Jayant 500. through the Inward/Outward Dak along with other regular work.00 outside institutions including Public 40 50. Your Bank has 722 Visually Impaired Helen Keller Award 2015 (VI) and 276 Hearing Impaired (HI) Due to Specialised Training Initiatives for the VI & HI Employees. where the SBLCs took part in imparting sessions on Financial Literacy and Financial Inclusion in various Colleges. a Visually Impaired Employee working as an Associate. Your Bank has 200. his proficiency inclusion. Using video 2012-13 2013-14 2014-15 2015-16 conferencing.all learning materials are accessible by Exhibit 41: No.00 State Bank Academy. your Bank has Employees along with Orthopedically been conferred with the “Helen Keller Award 2015” presented by National Centre for Challenged staff. Schools and Government Agencies.00 Your Bank’s training footprint is getting 250.00 54 and Private Sector Bank officers and 0.00 Sinha. 1. Minister of State for Finance 450.3.00 20. 350. Gurgaon.00 432 on the occasion of Gyan Sangam II at 400. As part of its role in Nation Building. VI / HI Employees Trained Vesually Impaired Employees Trained all Apex Training Institutes and SBLCs Hearing Impaired Employees Trained in one place via the Intranet. SBI also contributed to the Sakhshar Bharat / National Literacy Mission. training.” partnering with NGOs for this mission. after The objective is enabling financial undergoing an extensive Institutional Training Programme. 76 State Bank of India | Annual Report 2015-16 .e. Overdraft against TDR/STDR/e- 2. to its customers with the objective of within the timelines) to enable your enabling banking transactions at any Quick Cash.The Digitisation and excellence in operations do so in Indian banking industry against customer shall be informed about the has been core to your Bank’s strategy regulatory advisory to complete this number of free transaction left with him in providing convenience to customers. cloud. to your Bank’s customers. De-hot listing (Unblocking) of ATM (CBS) environment is based on an Large Corporate. The process for systematic State Bank Collect and merchant- and proactive risk identification. completed on 01.Quick Cash facility to Bank to increase the number of ATMs time and from anywhere. (risk reduction / mitigation).A Beneficiary technology to deliver convenience to its Upgradation of ATM Base 24 Switch Customer who does not possess customers. exercise by Feb16. RTO Reduction: Recovery Time Green Banking . to the extent of 90000. over 250 million transactions 8. monitoring including: aggregators. PMSBY through INB (Furthering Govt. Your Bank has been offering has been done (with the procurement card can withdraw cash at ATM after innovative and cutting-edge products and installation of CPUs and HSMs receiving PIN from the benefactor. It has resulted in a reduction in 5. Base 24 ATM Switch Upgradation: Card less Withdrawal. Cash transfer from Card to Account 2. e-Auction vertical has been initiated. i. Some of the new features launched in 1. site in case of need. For Bank . Tele banking registration through turnaround time and extended benefits ATM has been enabled.12. PRM: Proactive Risk Management Net Banking in FY2016 are: For Branches – No custody of PINs tool has been integrated with ATM Switches for Fraud Monitoring. Internet based solutions and mitigation of various risks in the IT also cater to the e-Tendering. Multi Option Payment System (MOPS). The Corporate Internet Banking (CINB) Your Bank’s Core Banking Solution is well suited to Small. less Medium Corporate. ATMs For customer – convenience. Chip enabled EMV Card Migration: to withdraw a pre-set favourite amount of social collaboration. Information was reduced from 180 minutes to 60 Operational man power reduction minutes by parallelisation of activities could be used for other beneficial Technology and semi-automation of process using operational analysis.2015. INTERNET BANKING through ATM has been introduced.Directors’ Report 2. on ATM machine. users. 100 and bulk payments related requirements crore in printing and dispatch cost. based platforms and big data analytics. Green Personal Identification traction with Government Treasury per day and delivering a throughput Number (PIN). Medium and 7. time taken for initiative to considerably reduce carbon Registration of PMJJBY & switching over to Disaster Recovery foot print. technology strategy has evolved in This facility shall allow the customer tune with the current consumer trends 4. of over 17. The project offers several benefits acquisition through independent assessment. for Base 24 Switch Initiatives). EMV card migration for all variants every time he visits ATM. Corporate and Government second-factor authentication has been generation through various channels Departments is being facilitated through implemented in branches for all CBS like IVR. measurement.com. State Bank of India is a strong scripts.000 transactions per card holder has been facilitated with Online collection of fees/funds for second. It has also been Cards through INB has been introduced. Instant Money Transfer (IMT) proponent of leveraging information 3. mobility. 6. particularly beneficial for New Developments in ATM NRI customers. architecture that supports one billion immensely successful in establishing accounts.savings of approx. 1st Bank to Display of free transactions . INB instantaneously. Biometric authentication as a a simpler process of Debit card PIN Institutions.Paperless TDR/e-STDR through onlinesbi. Your Bank’s the end customer has been provided. waiting time.State Bank Debit & Accounts Departments as well. Objective (RTO). of the Government / PSUs / Large and 1. powerful version 10. DIA is integrated with LOS. collateral. Activation of ATM card through INB amount and the EMI amount. SBI Quick Transfer (Without 4. borrowers. Field officers can capture the customer’s place. launching a new mobile App customer. deductions and details of proposed App and then continue the data entry SBI General Insurance Renewal. stock etc dedicated software platform for trade access to Miles portal & video assist for with the date. Mobile number capture / change Home and Auto Loan in-principle DIA . time and Top-Up / recharge through RINB KYC details. FOREIGN OFFICES Adding Beneficiary) in onlinesbi. including taking photograph. applications of Foreign Offices Diamond and platinum variant CSP stock and insurance expiry dates. TAB BANKING Savings Bank Account Opening Your Bank has launched Tab Banking services for opening accounts using Tab in Offline Mode.6. uploading of KYC documents.1 to latest and Certificate enabled online payments products. Chairman. time and geo-coordinates. E-Trade for Foreign Offices (FO): data is pre-populated and field staff creation of holiday savings account Successfully launched the separate and needs to capture the photographs of SBI Exclusif: Wealth Management . finance for all FO’s during the FY2016 wealth management customers The inspection reports are automatically Finassure: Launched a dedicated Issuance of debit card through INB mailed to the field staff in their EMS mail proactive monitoring service namely ids.2. Smart OTP for Retail INB furnished and cost of project. geo-coordinates using the Mobile Portal. staff capture the the photographs with date.13 during FY2016 CBS and HRMS where the customer Thomas Cook Recurring Deposit . Based on data for inspection in the Desktop site. Arundhati Bhattacharya. account holders Pehla Kadam Pehli Udaan (Allowing minors to create e-TDR / e-STDR / e-RD through INB) 3. property on the tab. Application also has auto reminders Finassure for monitoring critical Online Overdraft creation for for upcoming post-sanction inspections. factory. applicant All features provided in the tab are will be advised on approx.com Digital Inspection Application (DIA) (Small transfers) (ITFO) Tab Apps for recording the pre-sanction Finacle Core Migration Project: CINB Online Registration and post-sanction inspections of the Successfully migrated all 26 countries CINB SARAL – Digital Signature customers has been launched for 7 from Finacle version 7. particulars of income.Lite Version for Mobiles & through INB. Staff will complete all account opening formalities by using tab. Housing for SME has been launched for mobile previously). housing loan available in the desktop site. Loan / Auto Loan sales team visits phones. Thereafter the account opening details will be loaded in CBS platform and account number will be advised to Smt. “ State Bank no Queue” State Bank of India | Annual Report 2015-16 77 . Approvals Desktop Resetting of profile password at Tab Apps for giving in-principle sanction The Digital Inspection App Lite version any SBI Branch (only from home branch of Housing loan & Auto loan. In 7. DEVELOPMENT foreign branch of SBI went live in addition. thereby increasing their compared to that in FY2015 and FO’s efficiency and reducing the overheads increased by 8. level. Smart Payout cards. respectively. security to Multi Protocol Level Switching that the contact numbers of the drawer and convenience to overseas travellers. Cards in both INR and Foreign to be published). platform and is the backbone of its cheques: ‘Fetch’ button provided in the Canadian dollar. NEFT is offered through your CHANNELs FY2016 Bank’s mobile banking services. dollar.S.84%. with improvement in existing increased by 50. so British pound. 2016 (as per latest data by RBI. allowing CIF level changes (“NECS”) fund transfer facilities for all branches by December 2016. Different variants of INR transactions through your Bank’s mobile Linkage with SBI Mutual Fund: Prepaid cards such as EzPay cards. foreign regulators of 24. a project automated solution for EOD operations effective and time efficient modes for aimed at reducing data entry and steps for Foreign Offices in 12 countries remittance. providing safety.7 million Standardisation of Passbook certified for ISO22301 NEFT fund transfers. we have issued 27. In fiscal 2015 and 2016. the Saudi riyal. Gift banking service have also increased Facility for collection of Mutual Fund cards. purpose of contacting the customer 2. Business Continuity Plan (BCP) 2016. investments in CBS provided. State Bank Foreign Travel State Bank Connect is your Bank’s Cards are available in eight foreign secure and robust principal connectivity Customer confirmation of high-value currencies namely the Japanese yen. and 5.01. NEFT Project CBS Roopantar: Bank have EOD Automation: Launched and RTGS continue to be the most cost initiated “CBS Roopantar”. Imprest Cards. March data yet from being created. both in terms of time and resources. for fetching etc are issued to individual & corporate 6. 2016 (as creation of a new CIF has been provided to branches to prevent duplicate CIFs Prepaid Cards: SBI issues Prepaid per latest data by RBI.60% as of January 31. the Australian overall technology infrastructure.17% during 31st March. February and De-duplication of CIFs: On line search March data yet to be published). NETWORKING investor details. The volume (number) of required to perform transactions by outward fund transfers through NEFT Anti Money Laundering Solution tellers. South Korea: The 194th as well as through internet banking. Bank have embarked on a Flagging of ‘Wealth’ customers: Settlement (“RTGS”). 78 State Bank of India | Annual Report 2015-16 .Directors’ Report SBI. narrations: Narrations printed in Compliance: Proved higher Your Bank has established itself as a passbook have been standardised for security standards set by local and leader in NEFT. NEFT fund transfer Currency. in FY2016 AMLOCK: Successfully rolled out for all processes. Quick Pay significantly in recent years. by linking Cards.220 higher uptime and dynamic upgrade of can be viewed by the teller for the Foreign Travel cards and approximately bandwidth. / obtaining confirmation while paying To provide a comfortable bandwidth high value cheques.54% as of 29th February. PAYMENT SYSTEM RTGS maintained a market share of facility for duplicate CIFs at the time of GROUP 10. customers. along with an additional field for dollar. there ISO 22301: Business Continuity Plan were 187. National bulk bandwidth upgrade project and Development completed for creation Electronic Fund Transfer (“NEFT”) and have so far upgraded bandwidth at of CIF level flag to identify ‘Wealth’ National Electronic Clearing Service 10.900 INR prepaid cards. (MPLS) architecture for ensuring of the cheque available in the system In FY2016. The the cheque posting screens at Maker dollar.235 branches and expect to cover customers. with a market share the convenience of customers. from remote RM centre and wealth hub qualifying transactions at its branches for all Wealth flagged accounts. the Euro and the point links have recently been migrated displaying phone/ mobile number.4 million and 282. Funds Transfer and Settlement: to all our offices for better customer Your Bank offers Real Time Gross service. the U. Achiever Cards to Mutual Fund server. the Singapore State Bank Connect primary point-to. Flagging of Fraudsters’ accounts: Accounts of fraudster will be flagged as Your Bank’s YouTube channel leads “Fraudster’s Account” and an alert message “Care . It also leads the chart on LinkedIn and Pinterest to promote collaboration among its among Indian banks. Top 100 Banks using Social Media by The Financial Brand in their list of “Power 100 Ranks . on 9th July. 2015. and knowledgeable. on Face book. The platform is also being used by senior functionaries (including the Chairman) as a medium of direct interaction with all the employees. EXECUTIVE SUPPORT SYSTEMS views. 9. a symbiotic work culture along with providing solutions to them.Suspected Fraudster” will be all Indian banks in terms of subscriber flashed on such account whenever these accounts are accessed. The data is used State Bank of India | Annual Report 2015-16 79 . It also mentioned that our Bank is the most active bank on Facebook. SBI boasts having the highest fan-base on Facebook social media platform—‘SBI Aspirations’ across the globe among banks. We have adopted an aggressive social media strategy Aspirations which has strengthened our foothold in the social space not just in the Indian market Your Bank also runs a vibrant internal but on a global scale as well. up-sell and customer retention. your Bank is amongst decisions via market segmentation and the most active banks in addressing customer complaints and queries on social predictive analytics with the objective of media. uploaded more than 220 videos that have garnered over 10 million 8. Customer Analytics is carried out to make key business According to an article in Economic times. base. and Instagram. Data warehouse is state of the art We are the first bank in India to have started live broadcasting of important events and contains over 200 TB of data. we have been ranked No. with enhancing customer revenues through the highest number of posts shared per day. In its endeavour to make Bank’s employees more innovative. ANALYTICS Your Bank is using analytics extensively to better understand and serve the customer by generating actionable insights to generate business and revenue while at the same time controlling costs. 2013 is today the most popular page across all Indian Banks with more than 5 million followers. productive. Integrated Data Strategy. employees for better productivity.Banks Q1 2016”. with 400 GB added daily through 50 million transactions. indicating appreciation by the digital users. Social Media Subsequent to establishing our presence on external social media sites by engaging Your Bank also has a significant with the young generation customers. cross-sell. Processing We have leveraged this platform to promote our latest products and services and and Management (IDSPM): Our provided responses to the innumerable comments that we receive on this platform.1 globally among presence on Twitter. SBI’s Face book Page which was launched on 7th November. 10. Intel chip 9560 Superdome at both Project Command Centre: The primary and DR site. which is an important business practice to maintain an accurate inventory. It turns data into ultimate value Federation Services (ADFS) using the in a short time span of 1 hour. maintenance and protection of hardware & software assets utilised across the organisation. and. The vertical has also introduced the customer on fulfilment of transaction. Data Centre & DR Centre: Availability of IT Infrastructure to support business operations is a critical aspect of technology adoption. Disaster Recovery Site (Hot Site) with Business Intelligence is at the heart all the processing environment and in of decision making and also helps Project Single Sign On (SSO): Your closer proximity to production site for optimise risk weighted capital to asset Bank is leveraging Active Directory resuming the Core Banking Operations ratio. Bank has built a robust disaster recovery architecture to ensure business operations in case of non-availability of primary IT 80 State Bank of India | Annual Report 2015-16 . The benefits of introducing new utilisation of scarce resources for engagement. We also migrated IT-Budgeting & Cost Control: Your Command Centre gives your Bank the the production environment with all- Bank has automated a large part of its capability to monitor all transactions flash-storage replacing the old spinning IT-Budgeting and is ensuring optimal end-to-end. processing by your Bank’s technology of all-flash storage gave efficient management and financial IT application and acknowledgement to 30% gain in batch jobs. Each IT Application is 11. thereby user ID and password across multiple application with the latest processor improving the data quality significantly. and Charge Back Model with a view to The Command Centre is a state of the new setup can cater to the business further ingrain ROI in the corporate art setup with 18 LED display panels for need of 750+million accounts for SBI. primary and alternative sites are tested your Bank has setup an Alternate Business Intelligence: At SBI. gain in transaction response time. culture. starting from the customer disks. licensing information.Directors’ Report across Your Bank for reports and infrastructure. processes of movement between criticality of Core Banking application. Centralised for implementation of Single Sign On DB Layer Refresh & All-Flash Project Ganga is the data cleansing (SSO). SSO Storage: We have refreshed the utility of your Bank which has enabled enables the user to have single set of Database layer of Core banking us rectify 97% errors reported. regularly to ensure the readiness. The Recovery Site (HOT Site): In view of and visualisation dashboard. is the source of major reporting Active Directory Services infrastructure and analyses in your Bank. current use and future requirements. applications. Back office automation Project it. in a phased manner.asset management solution (itams): Your Bank has implemented an IT Asset Management Solution (ITAMS). Core banking returns monitoring and is provided in designed to have an alternative IT automation in a graphical and intuitive manner to infrastructure arrangement identical Setting up of Alternate Disaster business users including interactive to their production environment. around 40% control. Digital Branch and complexity of its activities. Raghuram G of risk at the place of origination. aligned with regulatory 2015 Gartner Financial Services Cool• Most Innovative Digital Customer standards and international best Business Awards Service Enhancement SBI InTouch practices. • Best Financial Inclusion Technology Your Bank has policies and procedures 2015 (Kiosk Banking & Direct Benefit Transfer ) 2 awards in place to measure. This framework visualises empowerment of Business Units at the operating level. The major risks are credit • Best Digital Banking 2015 (SBI Digital risk. The projects are being implemented with support from external consultants. has been put in place. assess. liquidity risk and In-touch Branch) operational risk which includes IT risk. with technology being the key driver. State Bank of India | Annual Report 2015-16 81 . in line with international best practices. monitor and manage these risks systematically IDC Insights Award • Excellence in Innovation (Quick Overdraft facility through Internet across all its portfolios. Fraud and Approaches under Credit. Your • Most Innovative New Digital Product - SBI Quick (Runner Up) Bank is exposed to various risks that are an inherent part of any banking Skoch Smart Technology Awards 2015 • Best Smart Technology 2015 (SSK & GRC) 2 awards business. market risk. Risk Management IMC IT Awards 2015 • Analytics Overview IDRBT Banking Technology Excellence• Electronic Payment Systems (among Awards FY2015 large Public & Private Sector Banks) Your Bank has an evolving and robust • Managing IT Infrastructure (among risk management model of proven large Public and Private Sector Banks) effectiveness. Your Bank Banking) is amongst the leaders to undertake IBA Banking Technology Awards 2016 • Best Financial Inclusion Initiative implementation of the Advanced • Best Risk Management. Monitoring and Control functions.Exhibit 42: List of Technology Awards received during FY2016 3. and proportional to the scale (Winner) . Governor. Reserve Bank of India. An independent Risk Governance Structure. in the context of separation of duties and ensuring independence of Risk Measurement. Your Bank has also • Best Technology Bank of the Year undertaken the Enterprise and Group (Runner-up) Risk Management Projects which aim to adopt global best practices. Bank received the IDRBT Banking Technology Excellence Award 2014-15 for enabling identification and management ‘Managing IT Infrastructure’ in Large Banks category from Dr. Risk Management Award Category A. Market and Cyber Security Initiatives Operational risk. Rajan. RBI Guidelines on Basel III Capital Regulations have been implemented and your Bank is adequately capitalised as per the current requirements under Basel III. to effectively implement risk monitoring Exhibit 43: Risk Management Structure and mitigation practices in the day to Risk Management day functioning. through digitisation and Committee (ORMC) centralised monitoring DMD & CRO Enterprise and Group Risk Management Risk culture is being embedded CGM (RM) Committee (EGRMC) through training of staff at all levels through e-learning lessons. and through the Loan migration to AMA. initiatives towards enhancing its risk Group Risk is being measured Reduction in risk and return on Capital management. 82 State Bank of India | Annual Report 2015-16 . lakh employees at the operating level. Some key actions taken through Contagion Risk. are interfaced with CIBIL’s and RBI’s has also been digitised. Board of Directors Credit Risk Management 1st September was celebrated as Committee (CRMC) Risk Awareness Day. An Independent Risk Advisory New initiatives in Risk In order to focus on capital is being established to ensure Management conservation and maximisation of return independent reviews of high value on capital. counter-parties from outright default or data. your Bank has introduced credit proposals. on Capital (RAROC) framework has to one platform to facilitate capital This is steadily being augmented to been implemented from FY2016. RCSA (Risk and Control Self- from reduction in portfolio value. subject to RBI’s final Review Mechanism (LRM) for loans approval. models for monitoring and scoring the The reporting and MIS capabilities 1. which Customer level RAROC calculation Measurement Method. Credit An independent. and `5 crore. above `5 crore. Achievement Adoption of an IT platform for credit Risk Indices. of losses associated with the diminution monitoring of your Bank’s industry/ in the credit quality of borrowers or Internal loss data.Directors’ Report The various risks across Bank and the SBI Group are monitored and reviewed Risk Awareness Workshops were through the Executive level committees and the Risk Management Committee conducted across your Bank by the Risk of the Board (RMCB) which meets regularly. Risk Adjusted Return MUREX/Finnacle) have been integrated Management system (LOS/LLMS). external loss exposure limit to be on a real time basis. Asset Liability Risk Management Management Committee of the Market Risk Your Bank strengthened its Committiee (Alco) Board (RMCB) Management Committee (MRMC) internal control environment around MD Operational Risk pre-screening and post sanction (Compliance & Risk) Management compliance. Strategic Risk and Reputation Risk Capital (RoCrC). Risk Management project for eventual sovereign. Risk Management Committees at Management department covering 1. especially in the areas Committees of Credit & Operational Risks. financial institution or having exposure between `1. computation under the Standardised cover the entire credit portfolio. an Early Sanction Review for all loans integral part of Bank’s Operational corporate. second look is Assessment) KRIs (Key Risk Indicators) Risk emanates from a bank’s dealings being given on all the sanctions through and Scenario analysis are now an with an individual.Behavioral defaulters list.00 crore. Your bank has taken several new risk Risk Based Budgeting (RBB). CREDIT RISK retail borrower performance have been of the LOS/LLMS system are being developed and hosted on Credit Risk Credit Risk is defined as the possibility augmented.97 Operational unit and Business unit level are also in place. non-corporate. of the budgeted advances levels will appraisal process through a Loan be subject to achievements under the Data from all source systems (CBS/ Originating Software/Loan Lifecycle specified levers. Bank. in order to allow the Data Mart. Concentration is measured based on Return on Credit include: Risk.. specifically to share developments in the commodity market (Oil. Industry best practices and PV01. spectrum trading. Board approved policies for Market Models and score cards for assessing The monitoring of Prudential Risk Management. Equities. drop in crude oil prices. being done regularly. Mutual Fund and are subject to comprehensive rating Norms and unsecured Exposures is Review of Market Risk Limits for Trading validation framework. Ujwal Discom Assurance Yojana (UDAY) among others. Cotton. Research papers are prepared to assess the impact of major developments e. The current status and near to changes in macro economic variables. interest rates and computed under the Standardized Analysis of industry developments is equity price. A periodical named ‘Commodity Watch’ was launched this year for internal circulation. Internal ratings of your Bank borrowers. among others. Stress Scenarios various risk limits. Action Trigger. Your Bank’s market risk appraisal and risk assessment Models for estimation of Probability management consists of identification practices in place for identification. Loss Given Default and measurement of risks. Your Bank’s business units are Bank regularly conducts Stress Test Market risks are controlled through armed with inputs on the developments. monitoring and control (LGD) and Exposure at Default (EAD) measures. to the industry concerned. Your shared with the operating functionaries by way of Annual Reviews. Substantial Exposure Securities. monitoring and reporting of the credit risk exposures. Edible oil) and their possible impact on your Bank’s exposure. 2. Industry-wise exposure Market Risk is the possibility of loss a Your Bank has Asset class wise ceilings are worked out on the basis of the industry prospects and the Bank may suffer on account of changes risk limits for its trading portfolio and performance of your Bank’s exposures in values of its trading portfolio. Book among others are in place. devaluation of Yuan. of Default (PD). Sugar. such Currently. uses internal Credit Risk Assessment computation of IRB capital. Lower Management medium term prospects of 37 major Action Trigger. Upper Management team. Aluminum. on its Credit portfolio. Steel.Mitigation Measures for Credit Risk. control measurement.g. market risk capital is as exchange rates. and monthly snapshots of the industries/ sectors. RBI has allowed your Bank to participate in the parallel run process for Foundation Internal Ratings Based (FIRB) under the Advanced Approaches State Bank of India | Annual Report 2015-16 83 . The data under parallel Mitigation Measures Your bank has strong credit run of FIRB is being submitted to RBI. Concentration and industries/sectors and are monitored Exposure Limits. Stop Loss. sectors tracked by the Industries Study guidelines. fall in Baltic Dry Index. MARKET RISK by this team. such as Net Overnight prospects and risks in the industries/ are regularly updated in line with RBI Open Position. Interest Rate segments. due monitors the same on an ongoing basis. Trading in Foreign credit risk under different exposure Exposure norms for Single and Group Exchange. Measurement Method (SMM). Derivatives. Modified Duration. Quarterly Bank has submitted Letter of Intent to updates. to change in market variables. Your Bank are hosted in Credit Risk Data mart for systems. 3. Bank’s Services/Products/Processes Process (ICAAP) Policy. to the Enterprise & Group Risk Bank has initiated the Enterprise Risk Management Committee (EGRMC) / Mitigation Measures Management (ERM) module. create awareness roles and responsibilities of various The Group Internal Capital of operational risk throughout your Committees /Functionaries to manage Adequacy Assessment Process Bank. Management. Operational Risk and Liquidity internal processes. assign risk ownership. OPERATIONAL RISK A quarterly analysis of risk-based Operational Risk is the risk of loss Mitigation Measures parameters for Credit Risk. regularly. carry Risk Management Policy. is presented or from external events. and overall . aligned with Business Objectives. The ntinuously review systems and control mechanisms. Group. The VaR methodology is AMA has also been calculated as part Exposure and Capital Market Exposure supplemented by conducting quarterly of Parallel Run. 84 State Bank of India | Annual Report 2015-16 . which are the key Rate Risk in Banking Book (IRRBB). Bank on a stand. Interest All Group entities where SBI has 20% requirements. align risk risks. documents in line with RBI guidelines structure to prevent data loss and on Operational Risk Management threats. Policies relating to Group Risk under the Advanced Approaches for For FY2016. including Nonbanking entities. (Group ICAAP) document includes an management activities with business assessment of identified risks by Group strategy. Board Risk Management Committee of the approved ERM Policy delineates the Board (RMCB). as per RBI have been adopted for the stress tests of the trading portfolio. among others. Arms Length and Intra market risk. Risk Appetite. to improve quality of Internal Capital Adequacy Assessment measures. Risk Aggregation and Risk components is also being done Material Risk Assessment. Capital charge as per Exposure limits for Large Borrower portfolio. to ensure better capital Your Bank has a comprehensive entities.Directors’ Report the Reserve Bank of India for migration Framework (ORMF) for eventual Mitigation Measures to Internal Models Approach (IMA) migration to AMA are in place. In addition. GROUP RISK RISK computation of operational risk capital charge on Parallel Run basis. Risk. monitoring risk in your Bank’s trading Approach (BIA). limits for Unsecured The VaR and Stressed VaR for 4. or more stake and management control elements of your Bank’s Operational Concentration Risk etc. people and systems the role of Risk into a Strategic function. alone basis. approval to your Bank (on a solo as per the Policy. and capital assessment. and ensure compliance with regulatory risks. Real Estate and Intra- market risk are computed on a daily Group Exposures have been set by Enterprise Risk Management Project basis. Risk Management practices as well as out the ICAAP exercise and a Group adequacy of Capital under both normal ICAAP Policy is in place to ensure RBI has granted In-Principle and stressed conditions are assessed uniformity. Market resulting from inadequate or failed As part of your Bank’s Vision to transform Risk. internal controls and mitigation management. manuals and framework establish stringent information security processes in Group entities. INFORMATION SECURITY 5. ENTERPRISE RISK Exposures. aims to put in place a comprehensive Enterprise level VaR is calculated framework to manage various risks. It Monitoring of consolidated on a daily basis and back testing is also encompasses Global best practices like Prudential Exposures and Group conducted daily. The Pillar 2 under normal and stressed conditions. had assigned capital for Group Transactions & Exposures are Value at Risk (VaR) is a tool for Operational Risk as per Basic Indicator in place. basis) to migrate to AMA (Advanced Measurement Approach) for 6. such as Liquidity Risk. your Bank. Group Risk Management aims to put in Information Security risk seeks to place standardized risk management Policies. 000 B. Critical IT Systems of your Web based Loan Review Mechanism to review the sanction process of loans Bank are compliant with the International above `5 crore and Early Sanction Review (ESR) of loan proposals with exposure BCMS Standard – ISO 22301:2012. international best practices. Internal Controls Events Per Second(EPS) which is Keeping pace with the rapid digitalisation. SBI is a forerunner in setting up of an in-house Security Operations Centre (SOC) for 24 x 7 monitoring of various attacks and threats on its IT infrastructure.Mitigation Measures SBI also gives a lot of importance to Awareness campaigns for staff as well Your Bank has implemented a as general public. The SOC has the following attributes: Capability of handling 60. of above `50 lakh and up to & including `5 crore have been introduced.000+ strong network of Bank’s offices (Domestic and Foreign) and Bank organized a citizen awareness campaign in collaboration with Mumbai Police and Navi Mumbai Police Associate Banks. In addition to planning Newspaper advertisements& TV & Radio robust IT Policy & Information Security campaigns. Web based Internal Verification Audit has been introduced replacing the Disaster Recovery Drills are conducted regularly as part of the manual Circle Audit. Regular security drills and employee awareness programmes are conducted to ensure security and increase awareness. SBI has run focussed citizen awareness campaigns in collaboration Policy. State Bank of India | Annual Report 2015-16 85 . (BCMS). introduced for Risk Focussed Internal Audit from 2016-17. scalable and expandable security reviews before launching as with enhanced level of automation and more granular risk assessment is being also are reviewed periodically. automated web based platform SBI eTHIC. They are reviewed periodically and suitably strengthened to address emerging threats. implementation of the Business Offsite Transaction Monitoring System(OTMS) to monitor exceptions observed Continuity Management System in transactions. Bank’s SOC is one of the largest in the Global Banking sector as it covers all 20. Business Continuity Management Systems (BCMS) have been implemented at your Bank’s Global IT Centre. The application setups undergo Web based Modular Structure which is flexible. Some key initiatives include the following: from within and outside your Bank Your Bank’s Concurrent Audit System has been redesigned incorporating fully and improves Incident Reporting and Management. your Bank has initiated technology driven scalable up to 5 Lakh EPS intervention in conducting various audits and moving towards automation in your Visibility over the security threats Bank’s audit processes. These policies are in line with with Mumbai Police and Navi Mumbai Police. audit of under Management Audit During the compliance at select branches is also During the period up to 31st March. an adjunct Department. at an early stage / Circle Local Head Offices / Apex of foreign offices). audit.888 domestic were reviewed under ESR. to Risk Based Supervision as per RBI Board (ACB) exercises supervision and During the period FY2016. Your Bank’s accounting units are subjected to RFIA. control and management Loan Review Mechanism exposures. To enhance Improve the quality of pre-sanction (at administrative offices) and also the effectiveness of Management process / sanctions in respect of oversee policy and implementation of Audit. of irregularities by branches. audit of branches in has an off-site review mechanism of Risk Management Process. The inspection system subjected to on-site Credit Audit. 50 establishments Improve the quality of sourcing offices). While audit of Group I of risks through the internal audit branches is administrated by the (LRM) function. each of which is headed by a crore within 6 months of sanction / covering different facets of Internal General Manager. The Credit Audit System responsibilities at each level. and Regional Rural Banks (RRB) of your Bank and Expenditure Audit sponsored by your Bank. To verify the level of rectification / administrative offices were audited of loan proposals. besides part of RFIA has been made a separate been introduced in audit system since quality of execution thereof. The domestic branches control over the functioning of I & MA period FY2016 8. Audit requirement. undertaken. Your Bank’s Management Audit covers FEMA Audit Early Sanction Review (ESR) administrative offices and examines FEMA Audit which is being done as Early Sanction Review [ESR] has policies and procedures. Associate Banks Audit. Audit Committee of the unit and suggests remedial measures. the department conducts Management Audit objectives of ESR are: Credit Audit. Audit of Outsourced Activities for mitigation thereof at the earliest. which is regarded as one Central Audit Unit (CAU) headed by a Audit in high value credit area also of the most important components General Manager. Credit Audit aims at achieving Information System Audit (IS continuous improvement in the quality of Commercial Credit portfolio of your Audit) Bank through critically examining All Branches are being subjected to individual large commercial loans with Information System (IS) Audit to assess 86 State Bank of India | Annual Report 2015-16 . three groups (Group I.Directors’ Report Your Bank has in-built internal Risk Focused Internal Audit exposures of `10 crore and above control systems with well-defined (RFIA) annually. September. Home Office Audit (audit proposals sanctioned. period FY2016. II & III) on the plays an important and critical role in basis of business profile and risk identification.879 accounts were have been broadly segregated into Department. Internal Verification and apprise the Controllers of such risks Training Institutions. 2014 to review sanctions of more than `50 lakh up to `5 crore. It also provides feedback to the business I&MA Department undertakes a critical conducts internal audit through its unit by way of warning signals about review of the entire operations of Inspection & Management Audit (I&MA) the quality of advance portfolio in the audited units through RFIA. periodicity has been reduced to exposures falling in this category. During the directives. branches/BPR entities under the Risk Credit Audit Focused Internal Audit. Your Group II and III category and Business (Loan Review Mechanism) of all the Bank carries out mainly two streams Process Re-engineering (BPR) entities pre-sanction and sanction process of audits – Risk Focused Internal are conducted by 13 Zonal Inspection of individual advances above `5 Audit (RFIA) and Management Audit. The Besides. 2016. a total number of 9650 accounts I & MA has audited 9. Concurrent Audit (domestic and foreign once in two years. enhancement / renewal. Information Systems Management Audit encompasses Audit (Centralised IT establishments To capture the critical risks in the Corporate Centre establishments & Branches). Offices. During the period FY2016. This Subsidiaries / Joint Ventures. Exception New Website of OL Dept. Keeping in view. A full fledged outsourced audit department headed 3.094 units were establishments is carried out by a team audited by the Internal Verification Audit Language of qualified officials/ outside experts. above. 2016. understanding of their needs and guidelines and formats for the conduct Audit of Outsourced achieve better results. effective controls Business Verticals in June. It covers low value credit areas. during All India Rajbhasha Adhikari Concurrent Audit System is essentially Vaarshik Sammelan held at SBIRD. has been activities of your Bank. a web based solution. During 4. has highlights are given below: Office Audit been introduced to capture deviations During the period FY2016. IS Audit of centralised IT the period FY2016. through Hindi) covering 12 activities. 4. We continued Monitoring System (OTMS) our efforts to use Hindi and other Indian Off-Site Transaction Monitoring System languages in your Bank. based on certain has been developed by our bank’s offices / Country Head Offices and 4 business rules. I&MA 7997 cases. of exceptions are being monitored and website is launched by our Chairman flagged to the branches for verification recently through video conferencing Concurrent Audit System by them. integral to the Legal Audit Hyderabad. Home Office and take corrective actions. 9. books and overseeing of operations on a cover all loan and Mortgage related published continuous basis. This enables auditee unit to be to bring out similar books to learn State Bank of India | Annual Report 2015-16 87 . ’Hamara Raasta Grahak ka Internal Verification Audit by a General Manager is being set Raasta. a control process. in their language and have a better department prescribes the processes. the Government of India. which was a up to oversee the audit of outsourced Bhasha’ (To learn Tamil through Hindi) delegated audit till last year. Official the branch. Legal shall make our staff conversant with so as to cover your Bank’s Advances Audit was commenced in 8696 eligible the regional language also so that and other risk exposures as prescribed accounts and has been completed in they can interact with the local people by the regulatory authority. ’Aaiyey Seekhein’ (To learn vendors. and is conducted between two Other Circles have also been instructed RFIAs. 2014 to ‘Sugam Marathi’ etc. I&MA has a policy approved by with external auditors appointed Bangla through Hindi) the Audit Committee of the Board and as Concurrent Auditors (External 2. IS audits of implementation of different provisions 99 centralised IT establishments were of the Annual Programme formulated by Off-Site Transaction completed. As on 31st March. launched Audit was carried out at 3 branches. At Present. Some of the Foreign Offices Audit – Home (OTMS).the IT related risks as part of RFIA of better prepared for the RFIA. Management Audit at 9 Representative Warehouse (DW). establishment of sound internal Legal Audit was rolled out in all the accounting functions. 14 types Rajbhasha & System officers. ’Sugam Marathi’ (To learn Marathi audit has been completed in 37 entities Chartered Accountant Firms). along with the of activities to approximately 6014 introduction of a web-based solution. Your Bank is committed to the During the period FY2016. of concurrent audit at branches and this need our Rajbhasha Dept has Activities BPR entities. Concurrent Audit documents pertaining to accounts with In the changed scenario Government System is reviewed on an on-going aggregate exposure of `5 crore and of India is expecting from us that we basis in accordance with RBI directives. ’Chalo Seekhein Gujarati’ (To taken over by I&MA to make it more learn Gujarati through Hindi) effective. Concurrent Audit System brought out following publications: Bank has outsourced 56 groups has been revamped. Department. Hamari Bhasha Grahak ki Internal Verification Audit. 1. data is being generated by Data A new website of Rajbhasha Dept. Directors’ Report Telugu. Communication Excellence Award 2015 of enthusiasm. Among ‘Banking Briefs’ (A Compendium of During the year we have introduced the highlights participation of foreign Articles Relevant to Bankers). progressive use of Hindi there and bilingual also to encourage and motivate our With the objective of bilingualisation Hindi Sentence Formation staff members to use Hindi in their day of Bank’s training material our Staff Competition for Non-Hindi knowing to day work according to the target College brought out a 1040 pages staff set in the Annual Programme. September month celebrated as of banking terms. 88 State Bank of India | Annual Report 2015-16 . in your Bank. all offices Rights. by your Bank named ‘Aaiyey Seekhein’ her balance in the account and get a Renowned Hindi poet Dr. ‘Banking a bi-monthly sentence formation nationals is a very encouraging sign Briefs’ is freely used by all the Apex competition in Hindi for other than Hindi for the propagation of Hindi in those Training Institutes and Learning knowing staff. Neeraj and renowned Hindi–Urdu poet Chief Guest and other participants Late Shri Nida Fazli felicitated on the eve of Hindi day at Corporate Centre of Awards – Compendium of Customer your Bank. A organization awarded best magazine India online Hindi Quiz in the Rajbhasha Compendium of Customer Information award to your Bank for its quarterly Month with different elimination rounds. we have started an All day to day working in your Bank. in bilingual comprising of policy Hindi house magazine ‘Prayas’. Assamese. Committee Meeting Corporate Affairs and Information & A new application has been developed and implemented by our own System A meeting of the standing committee Broadcasting launched State Bank and Rajbhasha Officers for online set up under the aegis of Reserve Bank Buddy the mobile app of your Bank in submission of the quarterly progress of India to ensure uniformity in banking 13 major Indian languages. report. Customers Rights. In SMS Hindi from his/her registered September 2015 celebrated in Region the opening session booklet published mobile number and enquire about his/ ‘C’ i. brought out during the year. Policy on Grievance redressal. The objective of this day is to Public Address System every day at 11 create a conducive environment for Publication of ‘Banking Briefs’ in A. More than 11.Aashirwad a literary – social . the year to present a thought in Hindi on Day.000 staff members from documents viz. ‘StateBankBuddy’ in 13 major Indian submission of Quarterly Progress languages Report RBI Banking Terminology Honourable Union Minister for Finance. Depositors Kannada through Hindi.e. different procedural literature in their . countries. Cheque Collection -Shailaja Nair Foundation’s In house all over your Bank participated with lot Policy. Gopal Das (Bangla through Hindi) presented to the Mini statement through SMS in Hindi.Bank’s Quarterly Hindi house journal Information in bilingual PRAYAS Adjudged among best All India online Hindi Quiz The staff members are required to refer magazines by the RBI. terminology in the banking industry was hosted by us at our Corporate Centre SBI QUICK service launched in Renowned Lyricist Neeraj & Late at Mumbai on 28th and 29th January Hindi also Poet Nida Fazli Felicitated 2016. Many foreign staff members Centres as training hand outs. The meeting concluded with During the year your Bank has launched finalization of 737 Hindi equivalents SBI QUICK service in Hindi also. . On this occasion Customer can register himself for SBI Rajbhasha Month in Region ‘A’ & ‘B’ a demonstration of online banking QUICK service and after registration and a Rajbhasha week from 7th to 14th glossary portal of RBI was also made. As a responsible Corporate. Oriya.M.cultural From this year. other than Hindi Speaking areas. Punjabi and World Hindi Day Security Repossession. The Code of of your Bank abroad celebrated 11th Bank’s Commitment to Customers and Thought of the day in Hindi January 2016 (10th January 2016 detection and impounding of Counterfeit A new initiative has been taken during being a holiday) as World Hindi Notes etc. won prizes in the competitions held on Web application for online this day. Corporate Social Responsibility by Honourable Governors of respective State Bank of India has been a pioneer in the space of Corporate Social Responsibility states. Where certain lapses of grave nature The CSR spend of your Bank for the FY2016 stood at `143. out of which 1049 cases have since been concluded. The concept of Whistleblower is another Society on effective tool for Preventive Vigilance. Preventive Vigilance Committee meetings are being held at the branches Aspirational and at regular quarterly intervals. The Whistleblower is generally an FY2016 saw the CSR activities of your Bank scale new heights of achievements. such branches are fourth successive year. 2015. Environment Protection. In this connection. ‘Prayas’. In line with this year’s Your Bank is committed to the economic and social wellbeing of the socially and theme “Preventive Vigilance as a tool economically impoverished. which acts as a deterrent for employees that may be prone to carrying out malicious activities. of Good Governance” and having observed Vigilance Awareness Week A Caring from the 26th to 31st October.honour us for Hindi house magazine so that possible fraudulent activities are checked and remedial measures taken.Many of the Town Level Official examination. Preventive Vigilance is being given more importance as it inculcates a sense of honesty and integrity among its employees and reinforce internal Systems and Procedures to control Bank for malafide activities. This is the are observed.” within the Indian Banking ecosystem. Your Bank has At SBI. Language Implementation Committees convened by our Bank were awarded 6. Social Responsibility is an integral part of Mechanism its business and a key aspect of its corporate strategy since 1973. a total of 1459 cases (993 new cases) were taken up for . The sector wise spend during the FY2016 is as under: State Bank of India | Annual Report 2015-16 89 . where its CSR spend has crossed the milestone of `1000 earmarked for Suo-motu investigations million. During the FY2015-16. insider. Your Bank believes that it owes a solemn duty to the less fortunate and underprivileged members of the society to make 5. There is a well-defined Whistle Blower the go policy in our Bank.92 crore. can provide evidence Supporting Health against the delinquent employees. who has near full knowledge of the misdeeds of fellow worker or Focus areas of SBI’s CSR activities higher official. and Participative. there are three aspects to the been setting aside 1% of its net profit for CSR initiatives and its CSR initiatives vigilance function – Preventive. Vigilance sustainable social change in their lives. We Supporting Education keep the secrecy of the whistleblower and give protection to them so that Supporting Persons with Disabilities they continued proving an effective tool Skill Development and Livelihood Creation against wrongdoings without fear. Punitive have made a true difference in the lives of millions from underserved communities. 41 Lack of affordability. Your Bank has Skill Development Health also donated `8.41 2. National Donations Sanitation.958 Stretcher Trolleys to large number of hospitals 44. opment Sanitation. R & D and others Education 4.92 ameliorate the conditions of the common man.00 across the country. 31.16 society. To deliver quality healthcare to those belonging to underprivileged and Exhibit 45: Amount (` In crore) economically weaker sections of the 11. It is still inaccessible to many sections of the 3 Skill development 44.66 society.98 The primary focus has always remained 11 R & D Fund 1.04 and depressed section of the society. R&D 90 State Bank of India | Annual Report 2015-16 .98 to provide the basic infrastructure to Total 143. Education Skill Devel.50 number of hospitals.Directors’ Report Exhibit 44: Focus Area wise Spend Amount Supporting Healthcare: Health No.03 Your Bank has supported surgeries for poor and underprivileged section of the society by sponsoring 150 heart 13. especially the most vulnerable 4 Sanitation 4.78 Your Bank has donated 18.761 Environment Wheel Chairs & 17.99 1. Healthcare 2 Education 19.20 India. 9 Natural calamities 2.16 10 Others 1.91 capacity and potential of the Hospitals to serve more & more needy patients. Sports.Your Bank has also donated `98 lakh for supporting the old age homes. unavailability 6 Environment 4. Category Amt. your Bank has supported large Culture. National Environ.66 56.93 trust Bangalore and Needy heart 3.21 reasons for a low healthcare index in 8 Culture 1.24 crore to over 50 charitable organisations for acquiring 57 Ambulances and Medical Vans.78 and lack of awareness are the major 7 Sports 2.50 foundation. (`in crore) and hygiene are critical elements to 1 Healthcare 56.55 surgeries through Rotary Charitable 7. 5 Disability 5. This has improved the Exhibit 46: Focus area wise spending in % 38.Health Donations ment Sports.00 enhance the quality of life.50 in India is a neglected area.20 crore to 63 charitable organisations/hospitals for acquiring various medical/surgical equipments. 19.41 PWD Your Bank has donated `24. PWD Culture. 5.32 3. 59 crore in holistically supporting for food.24 crore for acquiring 63 School buses/vehicles to help schools in rural areas to provide easy transportation to underprivileged children. computers. and the printing and distribution of one lakh note books among destitute girl students. Under the initiative. Rural Self Development Training Institutes (RSETIs): has 116 Rural Self Employment Training Institutes (RSETIs) across the country to mitigate the unemployment and underemployment problem among the Shri Rajnish Kumar.03 crore It is commonly said “A healthy nation to reputed NGOs in this field for acquiring various equipment for skill development is always a wealthy nation”. State Bank of India get involved in various developmental projects in rural areas. periodic skill up-gradation.Women’s Health: Your Bank organised vocational training. under the title “Vanita Arogya Sampada” The aim of training is to equip the rural youth to get employment or start a profitable by conducting over 100 FREE health micro-enterprise. hand holding. `2. utility vehicles for welfare activities and also for setting up a call centre An Amount of `2. youths take part. Managing Director (NBG) Corporate Centre. These youth were supported by a monthly fellowship from your bank. Your Bank also spent an amount of `3. Sport is an such as Sewing & knitting machines. Supporting Education: Education plays a vital role in improving the standard of life of an individual and is SBI Youth for India Fellowship program: To bridge the widening urban-rural viewed as an effective tool for bringing divide and to organize and galvanize the youth. shelter and sponsoring the cost of education. The fellow of the fourth batch are currently working at 23 locations in 12 Holistic Support: Your Bank spent states. incurred for conducting skill development programs for youth was `28.21 crore was spent training facility for blind girls. a unique CSR Programme was social change through community initiated by your Bank in 2011-12. It entails the urban educated youth to voluntarily development. Your Bank also donated `8. State Bank of India | Annual Report 2015-16 91 .60 crore for the construction of 9 RSETI check-up cum awareness camps for buildings and for providing other infrastructure to 12 RSETIs. providing forward and backward credit linkages. for conceiving and working on innovative projects in which the enrolled unreachable & underdeveloped areas.69 crore at 116 RSETIs of your Bank across the country. laptops. always strives to support for education your Bank partnered with reputed NGOs that are engaged in development work in of a weaker social group in remote. projectors.22 crore on Computers. The expenditure women across the country. rural areas. This imparts formal distributing donation to flood affected schools in Chennai. Your Bank has spent `9. for development of sport especially in North eastern region of the country. important part of our national culture. a Community Outreach Programme sustainable income generation. Your Bank also donated `3. Equipments. Furniture support for Setting up Science Centres to rural schools. capacity building. Mumbai youth in the country. buses and vans. Bank constituted SBI Children’s rain water harvesting.000 was contributed for switchover to LED lights.00 crore. in your Bank’s premises. by way of Assam for Assam Flood Relief during FY2016 for Construction of over of financial support and initiatives in measures – `1. Gujarat and in the year 2007 under the name “India An Amount of `5.90 crore contribution in several ways. to approx. Some specific actions clean power by your Bank’s branches/ (LSE) jointly with Reserve Bank of India take were: offices in Maharashtra. The corpus Bank has endorsed the International of the fund is made by staff members Financial Institutions’ Statement on Environment & Sustainability: and matching contribution provided Energy Efficiency Finance which was Environmental sustainability is defined by your Bank. Support to Persons with Disabilities environmental concerns and energy (PwDs): Your Bank always remain in the conservation. Distribution of artificial limbs. Your Bank has spent `4. of star rated ACs. Solar lamp. An donated to reputed NGOs in this field house energy efficiency initiatives like amount GBP 200. your Bank crore for acquiring.4200 beneficiaries. India”. wheel chairs among heating among others.52 lakh to various Conference in Paris. always been in the forefront to help the 92 State Bank of India | Annual Report 2015-16 . your Bank committed to issues pertaining to global during the year. 278 toilets and additional water facilities the area of renewable energy. Notable in this regard Research & Development Fund: Bank forefront for Protection and Promotion of are installation of Windmill capacity had set up a chair at the Asia Research the Rights and Dignity of Persons with aggregating 15 MW for captive use of Centre. crutches. include adoption of green building norms. and maintain long term quality of the In recognition of the leading role in environment. Other measures SBI Children’s Welfare Fund: Your others.41 crore was Tamil Nadu. orphans and the destitute. Solar water heater. December 2015 by the European Bank degradation of natural resources for Reconstruction & Development. SBI has spent `3. in November – environment to avoid depletion and educational institutes. To this Bharat – Swachh Vidyalaya Abhiyan’ end.78 Renewable Energy financing.16 crore. as well Chief Minister’s Relief Fund of in rural schools of India. National mission towards mass Energy: Your Bank continues to remain The following donations were made movement for cleanliness. of waste disposal. composting among aids to disabled women and children which extends grants to Educational others. It has also provided an animal ambulance and National Donations (Assistance set up an operation theatre for injured during natural calamities): Bank has animals. In line Community Based Rehabilitation Institutions engaged in the welfare with the approach and commitment in project for mentally /physically of underprivileged children such as the Renewable Energy space. During FY2016 Bank presented at the Climate Change as responsible interaction with the has donated `29. installation during the year. management Distribution of tricycles & Hearing welfare Fund as a Trust in 1983. solar powered water calipers. your challenged persons. your Bank has made significant Chief Minister’s Relief Fund initiative. London School of Economics Disabilities (PwD). commissioning and received the Outstanding Performance maintaining of a number of Solar power Award – 2015 from the Government of plants. and several other in- Observatory & IG Patel Chair”.`1. as adoption of various measures that Tamil Nadu for Chennai Flood relief reflect the importance attached to measures .Directors’ Report Swachh Bharat: To support the Global Warming & Renewable states affected by natural calamities. has extended its support to the ‘Swachh warming and renewable energy. and Solar street lamps. Kannan. Corporate Centre. Financial Services & Insurance Best CSR Practices World HRD Congress (BFSI) Excellence Awards 4 Asian Banking. 1 National Award for Excellence in CSR & Best Overall Excellence in CSR World HRD Congress Sustainability 2 National Award for Excellence in CSR & Best Overall Sustainability Performance World HRD Congress Sustainability 3 Asian Banking. Financial Services & Banks with Best CSR Practices to SBI World CSR Day Insurance (BFSI) Awards Foundation 9 Blue Star: Global CSR Excellence & Best CSR Practices World CSR Day Leadership Awards 10 Golden Globe Tiger Award for Excellence & Best CSR Practices World CSR Day Leadership in CSR Shri V. Financial Services & Insurance Business Sustainability Initiative of the Year World HRD Congress (BFSI) Excellence Awards 5 Lokmat Banking.G. Name of the Award Category Award Instituted By No. Financial Services & Best Bank (Public Sector) World CSR Day Insurance (BFSI) Excellence Awards 6 ABP News CSR Leadership Awards Best CSR Practices to SBI Foundation World CSR Day 7 10th INDY’s Awards Best CSR Practices to SBI Foundation Fun & Joy at Work 8 ABP News Banking.Awards: Your Bank has won 10 awards for its CSR initiatives during FY2016: S r . State Bank of India | Annual Report 2015-16 93 . Mumbai handing over cheque to Hon’ble Chief Minister of Assam Shri Tarun Gogoi. Managing Director (A&S) . New and to Rotary Institute of Children in Need of Special Care.18 7.65 3 State Bank of Mysore 628. Performance Trustee Business.92 4 State Bank of Patiala 2459. Coal.03. Merchant Banking.50 7.33 337.03 850.60 80.64 -972.73 66.798 branches and India.11 79. including Associate Banks Life Insurance.60 4.55 100. and . Associates & Subsidiaries Introduction & range of financial services.22 11.63 90.53 357.09 11. the State Bank Group.77 6.56 4.75 13.43 6.75 3.82 2. a Market share of around 5. MoS for Power. Thiruvananthapuram Renewable Energy. Custodial on 31st March.00 164597 139334 114369 3292.66 1064.62 5. Associate Banks gamut of financial services across Services.56 11.39 81.37 10.98 -12. Govt.93 81.09 114507 100473 67004 1798. awarded by Shri Piyush Chairman Smt Arundhati Bhattacharya on behalf of SBT donated equipment Goyal.10 100. 94 State Bank of India | Annual Report 2015-16 . General Insurance (Non Life together have 6.Directors’ Report V.34 2 State Bank of Hyderabad 367.85 5 State Bank of Travancore 885. through its Insurance) and Primary Dealership in 8. various subsidiaries.24 Awards and Accolades Some key Social Initiatives taken by State Bank of Bikaner & Jaipur during the year include the extending of financial support for constructing 88 toilets for girl students and 78 general toilets in schools across Rajasthan.00 131036 105806 85941 1827. provides a whole the Money Market. Credit The five Associate Banks of SBI had Highlights Card.89 12. The awards won by State Bank of Bikaner & Jaipur during the year include ranking 5th in “Best MID Size Indian Banks” by “Business Today”.12 75. Name of the SBI Total Agg.30% in deposits and 5. Runner Up under “Best MSME Bank Award for Emerging Bank” by Chamber of Indian Micro.69 11. Small & Medium Enterprises {CIMSME}.964 number of ATMs.33% in advances as As a part of mission to provide the entire Pension Fund Management. 2016.00 82975 70244 55418 1251. Total Op.87 3. Security Trading.07 110336 93320 74743 2305.06 4.78 2. Net CD CAR Gross Net Return on No Bank Share of Ownership Assets Deposits Advances Profit Profit Ratio % NPAs% NPA % Equity % Investment % 1 State Bank of Bikaner & Jaipur 676. Mutual Funds. of India. Factoring.85 78.2016: (`in crore) S .extending help to the earthquake affected people of Nepal and the flood affected people in Chennai. Exhibit 47: The performance highlights of the Associate Banks as on 31. 17% (SBI than 12 lakh accounts under the PMJDY 63. IPO.36 Chandigarh organised on the occasion Private Limited of 99th Foundation Day of your Bank. Haryana and 1 SBI Funds Management 31. These b) Corporate Social Responsibility.Winner for “MSME Banking Excellence Awards-2015”. Equity Capital Markets and Debt Capital Markets.03 100 278.52 Emerging Bank – Winner for “MSME Mgt.00 60* 0.10 100 0. offering entire bouquet of investment SKOCH Awards for a) Kerala banking and corporate advisory services to varied client base across three product Government e-Tender / e-Procurement. c) Rural Self Employment Mergers & Acquisitions. the ‘Drop Folder’ (Consolidated) utility project award under “Economic 2 SBI DFHI Limited 139. Services Private Limited Banking Excellence Awards-2015”. Eco-Tech Savvy Bank for 6 GE Capital Business Process 9. CSR & Business Responsibility Award A. ABs 5.86 Factors Limited The notable achievements by State 5 SBI Pension Funds Private 18. the opening of more MF and SBI Capital 20% each) and in SBI DFHI State Bank holding is 72.00 Bank of Travancore during the year Limited include ranking 1st among PSBs on the 4 SBI-SG Global Securities 52.51 Bank of Patiala during the year include Limited reaching 100% coverage of all their villages by engaging 752 Business *Group holding of SBI is 100% in SBI Pension Funds Private Limited (SBI 60%. Loan Syndication. scheme.78%.78 * 72. Sbi Capital Markets Limited (Sbicap) for Emerging Bank.22 74 (120) given by Kerala State Kudumbasree Company Limited Mission.18 0. Restructuring Advisory.33 and the Second Best Public Sector Company Bank award by the Kerala Bankers Private Limited Club.44 40 38.12%).96 Private Limited The notable achievements by State 3 SBI Life Insurance Company 740. Name of the Subsidiary Ownership % of Net Profit 94% of the accounts opened under the No Company (State Bank Ownership (Losses) for same scheme. the issue Exhibit 49: Non Banking Subsidiaries: Joint Ventures (`in crore) of RuPay Debit cards to more than Sr. in Remittances. Debt and Hybrid Capital raising.27% and SBI Capital 3.00 60 283. State Bank of India | Annual Report 2015-16 95 . SBI Correspondents. groups – Infrastructure. Social Circle.50 63 165. Structured Debt Placement.15 63. mobilising deposits of `161. SBICAPs is India’s leading investment bank.00 65 8.66 basis of support given to NHGs in the Services Private Limited form of linkage loan in Kerala award 5 SBI General Insurance 150. services include Project Advisory.The notable awards won by State Bank Subsidiaries of Hyderabad during the year include Exhibit 48: Non Banking Subsidiaries (`in crore) the SKOCH ‘order-of-merit’ award at Sr. Stressed Assets Training Institute and d) OFAC Filtering Resolution.79 86.30 crore from these accounts. Private Equity. 3 SBI Mutual Fund Trustee 0. FPO. and the “Run Against interest) FY2016 Drugs” across Punjab. 2 SBI Cards & Payment Services 471.19 Value Add” category at the same event. Rights Issues.88 Marathawada Region. Name of the Subsidiary Ownership % of Net Profit the Smart Technology Awards 2015 No Company (State Bank Ownership (Losses) for for the e-payment solution provided interest) FY2016 to Government of Maharashtra in the 1 SBI Capital Markets Limited 58. 4 SBI Global 137.00 74 861. 82 crore during specialising in marketing of Foreign as against `507. agricultural supply chain system to address all the trustee related ten Asia-Pac ex-Japan Loans: Largest in 8 identified states of India (Bihar. e-broking. be invested in Infrastructure sectors It also launched its ‘Trustee Enterprise Pac ex-Japan such as renewable energy. (SSGL) PD. Financial Institutions. SBICAP (SINGAPORE) LIMITED non G-Sec debt instruments. period ended 31st March. during the period ended 31st March. of SBI Capital Markets Limited. SBICAPs has which is being managed by SBICAP with effect from 1st August. 2008. Jharkhand. 2016 as industry namely. a wholly owned subsidiary of for SBI Capital Markets Limited in UK Dealer (PD) it is mandated to support SBI Capital Markets Limited. SSGL. SBICAP Securities Limited (SSL) positioning itself as a relationship outfit a pan India presence. SUL is standalone Primary Dealers (PD) with 1. Tax Free Bonds. 2. Odisha.29 billion rupee Pradesh and West Bengal). SSL currently has more than 10 Firms. Relationships are being the book building process in primary offering equity broking services to built with FIIs. deal of the year award by ASSET TRIPLE A ASIA Infrastructure Awards B.02 crore in FY2015.16 crore during FY2015. 2015 and current corpus of Will Creation service for the individuals ONGC Petro Additions Limited (OPaL) the Fund is `469. among others.35 crore during of the most prestigious awards in the Asset Management Company. Law Firms. SVL has trustee related operations. Madhya first and only Trustee Company in Pradesh. for SBICAP SEC. its business activities are regulated Home Loan. SBICAP TRUSTEE CO. is also engaged in sales and deals in money market instruments. 2016 gross revenue of `160. etc to market to secondary markets in G-Sec. the period ended 31st March. SVL is acting as the posted Net Profit of `13. Tractor Loan. Financial services to both retail and institutional Institutions. Relationships Demat.29 crore during lakh clients. it also segments. SBICAP Ventures Limited (SVL) 5. As a Primary SSL. etc. distribution of other financial products 4. e-IPO and e-MF are being built with FIIs. DFID (Department for International is a wholly owned subsidiary of 2016 against 430% in FY2015. etc. Rajasthan. SBICAP (UK) LIMITED (SUL) 2015 Dfhi) SUL is a wholly owned subsidiary of SBI DFHI Limited is one of the largest SBI Capital Markets Limited. water and Management System’ – an integrated OPaL deal also listed (5) in the top sanitation. Accounting Firms. STCL the SBI group to set up the “Neev Fund” commenced security trustee business As a leader in its space. funding facility deal bagged Telecom started earning Management Fee. The Neev Fund had its Initial close on STCL successfully launched an Online Aban Holdings Limited (7) and 10th April.90 crore during the the period ended 31st March. besides and Europe. Auto Loan. SSGL commenced business with effect SSL has over 100 branches and offers from December 2012. to market the business posted a PBT of `425.39 crore. SBICAPs clients. Development) has joined hands with SBI Capital Markets Limited.Directors’ Report On a standalone basis. LIMITED SVL is a wholly owned subsidiary (STCL) SBICAPs declared 320% dividend of SBI Capital Markets Limited. (9) listed in the top ten deals in Asia. cash as well as in Futures and Options the business products of SBICAP. Accounting 96 State Bank of India | Annual Report 2015-16 . operations and thus has become the Deals by Country Chhattisgarh. The Company has booked products of SBICAP.39 crore against 114. SBICAP Trustee Co Limited (STCL). Funds will in the name of ‘My Will Service Online’. It has been the period ended 31st March. As a like Mutual Funds. 2016 as Currency Bonds and securing clients FY2015 and a PAT of 283. 2016 against `338 crore in FY2015. Law auctions and provide depth and liquidity retail and institutional clients both in Firms. against `11. Besides Government securities. STCL attained recognition in the form of some Ventures Limited. Uttar India to have full automation across all Aircel Group 137. Sbi Dfhi Limited (Sbi 3. is a wholly owned subsidiary by RBI. In terms of new technology.Flexipay campaign has (Sbicpsl) Card based on NFC technology for been selected as an ECHO leader at SBICPSL. The card base has Card Innovations awards 2016.17 % share in the `54. Annual Awards ceremony in 2015 SBI Card’s learning tool ‘Little The market share of SBI DFHI was In the current year. Sbi Cards & Capital One and Mumbai Metro. the company Private Limited has launched Pay-Wave Signature SBI Card . Arundhati Bhattacharya and Chief Executive Officer of SBI Card Shri. 2016. the company has moved from 5th to 4th position in the current financial year with ~ 12% market share. The growth in spends continues to be amongst one of the highest in the industry @ 35% vs 26% growth in Industry. 16 at Eighth Annual Credit Information Payments Services Conference. Smt. Vijay Jasuja during launch of Paywave Contactless SBI to one-time deferred tax catch up of Card and SBI Intouch Debit Card. The company is firmly on the path of profitable growth and has been in profits since FY2010-11.46% amongst all market participants launched the “Simply Click” Card to tap Award under the category of ‘Leveraging and 20.SBI group holds 72. the company has Master’ won National IT excellence 3. the stand-alone credit card contactless usage. 2015. is a joint SBI Card awarded Most Trusted venture between State Bank of India SBI Cards received the following Brand by Reader’s Digest Trusted and GE Capital Corporation.55 10% for FY2015-16 vs 5 % in previous by Delhi Management Association in crore in FY2015. In terms of spends.37% amongst Standalone PDs into the e-commerce focussed younger IT for Business Performance’ as on 31st March.19 crore in the FY ended The company has proposed dividend @ practices in ‘ Talent Management ‘ 31st March. In FY2015- 16.1 crore in FY2014-15 post wiping SBI Card was awarded for its Company. Lower growth in Profit after Tax is due Chairman. year. Co-branded Cards with SBI Card awarded ‘Best Data Federal Bank. the 2015 DMA Asia ECHO™ Awards issuing company in India.68 lakh ‘Best credit Card Program’ by Master its Card One CRM tool. 2016 as against `92. SBI Card won International ‘Simply CLICK Card’ awarded ‘Best SBICPSL is 3rd largest in the industry Card Product/Program’ of the year at Gartner Award for the “Most Innovative in terms of Cards in force with 15% the Customer Fest Awards 2016 & Technology Legacy Transformation” for market share with a base of 34. the company has reported PBT of `438 crore at a growth rate of 21% (Excluding one-off accounting adjustments in FY2014-15). Lakshmi Vilas Bank. Profit after Tax stands at `284 crore in FY2015- 16 against `267 crore in FY2014-15. grown by 17% over the last financial year. generation. competitive and market leading Profit of `72. State Bank of India | Annual Report 2015-16 97 . Quality’ in NBFC segment for 2015- C. as at Dec. The Company posted Net out accumulated losses in the year. wherein awards during the current year: Brand Awards 2015 SBI holds 60% stake. Awards 2015’ for under-served Market The Company has proven its market SBI Life continues to remain focused Penetration. SBI Life Insurance Company Limited BNP Paribas Cardif have given their is a Joint Venture between State Bank intention for dial-up to increase their The various awards received are of India and BNP Paribas Cardif in stake by 10% by buying the same from a testimony to SBI Life’s quality which SBI holds 74% stake. the Company has achieved 37% growth in Individual Adjusted Premium Equivalent (APE) vis-a-vis 14% growth for private industry. insurance products. 2016 recorded a Y-o-Y growth of 13% at `83. Life Insurance (Large leadership again in FY16 with a growth on contributing towards improving the Companies Category). over 500 educational institutions and (Sbilife) organisations across the nation. SBI Life witnessed a PAT of `861 crore in FY2016 against `820 crore in FY2015. across different parts of the country. centricity and professional excellence. The Company has been ranked No. Further. The company witnessed a communities through healthcare Company (Private Sector) at the 29% growth in New Business Premium facilities.027 lives covered by the company are from the underprivileged 98 State Bank of India | Annual Report 2015-16 .3% vis-a-vis 15. Retail Awards and recognitions received Agency. Alternate.429 crore. Assets held as on 31st March. HRD Congress. The proposed divestment by SBI and commitment towards customer has a unique multi–distribution model has been approved by SBI. The Company has been the lives of more than one lakh substantially exceeding the minimum children and extended support to Company limited social and rural regulatory norms. Won the ‘The Indian Insurance in line with its avowed CSR goals.9% last year. SBI Life has systematically brought large rural areas under insurance. 1 in New Business Premium among the private industry. growth of 18%. The market share of The Company has engaged in societal SBI Life New Business Premium (NBP) Won ‘Marketing Campaign of the sustainability through its partnership among all private players as on March. programmes with national and local Year’ award for Excellence in Branding 2016 is 17. educational and infrastructural Lokmat BFSI Awards 2015 by World (NBP) vis-à-vis the private industry improvement and rural development. Leveraging wider reach achieved through its network of 774 offices. A total of 285. Group Corporate SBI Life has reinforced its outreach during the year include: and Online Channels for distribution of initiatives in the realm of child welfare. Sbi Life Insurance social sector. SBI Life SBI. comprising Bancassurance. organisations and has impacted and Marketing at 6th CMO Asia Awards.Directors’ Report D. The company has sold 24% of total policies in this segment in FY2016. rate higher than the growth of the quality of life of children and engaging Adjudged the Best Life Insurance industry. Sector)’ presented by World Marketing which is based at Mauritius and manages Off-shore Fund. `165. Won the ‘Golden Peacock Award for Risk Management’ for the year 2015. The Company has a fully owned 2015 in Life Insurance (Private foreign subsidiary namely SBI Funds Management (International) Private Limited. The award recognizes the fund for strong 3 year and 5 year Campaign’ category in the BFSI sector. Sbi Funds Management Private Limited Adjudged the ‘Most Trusted Private (Sbifmpl) Life Insurance Brand’ by The Economic SBIFMPL.89% as against category’. The Won IndIAA Awards 2015 for ‘Best average “Assets Under Management” (AUM) of the company during the quarter Advertisement’ under the ‘insurance ended March 2016 were `1.7 million investors. the average assets under management of `72.36 crore in FY2016 as against `163. new segments were identified and the products Won Knowledge Management listed below were launched. needs and current product portfolio. SBI Funds Management Congress. The Best Long Term Equity Asset Management House Achieved ‘Gold’ level of recognition in the Aarogya Healthy Workplace Runner up for Best Debt fund house Award 2015. E. Best Corporate Brands 2016”. 2015. Each of them is aimed to address a specific need and Leadership Award 2015 for “Use of to contribute to comprehensiveness of the product portfolio. the Asset Management Company of SBI Mutual Fund. returns after adjusting for risk. SBI FMAwards Won award in ‘Best HR Technology’ category at ‘Inspiring Work Places The Best Fund House in India Conference 2015’. SBIFMPL posted a PAT of year. is the 5th largest Times. Based on an analysis of the customer Enablement. the focus was on designing products that cater to the changing market 2015 for Best Program for Sales requirements and regulatory requirements. in addition to outperformance of its peers in 1 year.06. Lipper Fund Awards SBI Magnum Gilt Fund-Long Term-Growth won the Best Bond Award in the 3 years in Bond Indian Rupee – SBI Life won the Prime Time Government Award 2015 (Bronze) for the Great Dad SBI Small & Midcap-Growth won the best Equity Award in the 3 years category in Equity India advertising campaign under the ‘Best Morningstar Fund Category Award Creative Advertising – Single Ad or SBI Bluechip is the winner in the Large Cap Category. State Bank of India | Annual Report 2015-16 99 . 6.781 crore with a market share of 7. Best Training Methods for Knowledge Management at the 14th Asia Pacific HRM Congress.30% during the quarter ended March. SBI Life wins ‘Stars Of The Industry Award for Excellence In Life Insurance’ SBI Life was awarded ‘Golden Peacock National Quality Award’ for the year 2015 at IOD India’s ‘26th World Congress on Leadership For Business Excellence & Innovation’.43 crore earned during FY2015. Lipper Award (Best Group Over 3 Years) SBI FM has won a Fund Family Award for the mixed asset Adjudged the “The Economic Times classes.942 crore with a market share of Won Brand Excellence Award. Brand Equity and Nielsen Fund House in terms of Average “Assets Under Management” and a leading Survey 2015 for the fifth consecutive player in the market with over 4. Won TISS Leapvault CLO Award In FY2016. (International) Private Limited is a 100% subsidiary of SBIFMPL. The Company Export Factoring Turnover under was adjudged the “Best Pension Fund 2-Factor model went upto EUR 32.21 crore last year) and PAT Authority (PFRDA) for management Motor portfolio. State Bank of India and IAG Australia Company.008 crore as compared to last year “Assets Under Management” of the 4.18% share in the June 2015 at Singapore.55 Mio (INR 138 100 State Bank of India | Annual Report 2015-16 . The Factors Chain International (FCI).82%.8%.79 crore against much stake by 23% by buying the same from higher slippages during the last 2 years 69%. G. FY2016 as compared to FY2015. while in the Government sector SBI.000 the State Bank Group. `85. Company’s services are in which SBI holds 74% stake.019 crore (YOY growth of 47 %) the industry and 8th among the private brought down to `297 crore and Net against 31. The company as on 31st March. of `0. Fresh and Private Sectors.02 crore in FY2014-15 and it was 35%. SBIGIC occupies NPA level to `30 crore as on 31. a wholly owned subsidiary of of 13.03.9% to 2.2016.8 crore in FY2016. 2016 and was at operations from April 2008. players in FY2016. `108.4% growth in as compared to last year’s turnover of and State Government employees. SBI PENSION FUNDS other channels and products that meet PRIVATE LIMITED (SBIPF) business objectives and drive profitable The Company has turned around in SBIPF is one of the three Pension Fund growth.23 crore last year). The and Net NPA level of `91 crore as on amongst Pension Fund Managers in company ranks 2nd in “Fire” among 31.e.2016 2nd position in “Personal Accident” in against Gross NPA level of `363 crore The Company maintained lead position the industry and private insurers. FIU Level crossed `1. compared to EUR 18. The proposed divestment by SBI i.03. The overall AUM industry in FY2016. The company maintained has been approved by SBI. IAG has given their Slippages during FY2015-16 were market share in Private sector was intention for dial-up to increase their contained at `3. cornerstone of the company’s growth Company is able to ameliorate credit aspiration is focussed on the Banca risk from export receivables under the channel whilst selectively developing 2 factor model. The especially suitable for MSME clients The Company is adequately capitalized company’s strong focus is on disciplined for freeing up resources locked in book with AAA / A1+ ratings from reputed pricing and fair and transparent debts.75%. By virtue of it’s membership of rating agencies for its borrowing claims management practices.2015. SBI GENERAL LIMITED (SBIGFL) SBIGFL received 2015 Certificate of INSURANCE COMPANY Recognition for “Best Service Quality SBIGFL is a leading provider of factoring Improvement as Export Factor” from LIMITED (SBIGIC) services for domestic and international Factors Chain International (FCI) in SBIGIC is a joint venture between trade.5% to 5. The Company has entered in FY2015-16.03. GWP YOY against an industry growth `2. The FY2015-16 and was at `2. a growth of 9.1% and from `1. SBI holds 86.226 crore. Net NPA level is below 3% terms of AUM in both Government private insurers and 6th position in the of total FIU as on 31. its number 1 rank in both Private Sector and Government Sector.407 crore in March 2015. SBI GLOBAL FACTORS crore) during 14-15.53 crore (as compared to Fund Regulatory &Development manufactures to drive growth in the loss of `59..Directors’ Report F.80 House under NPS for the year 2015 by Mio (INR 238 crore) during FY15-16 as Outlook Money. 2016 were Company’s market ranking is 13th in Gross NPA level of the Company was 46.83 crore in FY2013-14.1% among Private Insurers in level of `921 crore. H.45%. a growth of 76.86 crore (as compared to loss of `46. Company has achieved Managers (PFM) appointed by Pension to strategic tie-ups with three large car PBT of `2. the programmes. commenced its all general insurance companies crore as of 31st March.500 crore during Pension System (NPS) for Central at `2039.532 crore Government (except Armed Forces) Company recorded 29. representing a growth SBIPF. Turnover of the of Pension Funds under the National Gross Written Premium (GWP) stood Company crossed `2. The total increased from 1. Overall market share among of 13. The Company’s registration with MoCA for carrying Net profits was `8. complete the bouquet of financial Sustainability & Environment it was envisaged that all the SBI services on offer by a financial Group entities would contribute to the Rural Development conglomerate. SBI-SG was adjudged the best corporate governance and corporate sub-custodian for India in the World’s social responsibility in promoting Best Sub Custodian Awards by Global and strengthening the trust of its Finance Magazine 2015. March 2016 as against `79.902 crore as against `. an idea to establish I. and subsidiaries and carrying out the 2015 by World Marketing Congress. Your Bank also aims to promote initiatives that preserve. its associates Influential Digital Media Professionals transparent way. Livelihood & Skill SBISG. ecological the Global Investor Survey in the balance. and 50 Most sustainable development in the most activities of your Bank. The Foundation has received in May 2010 and Fund Accounting necessary approvals from RBI and Services in Sept 2010. Your in the 2016 survey for sub-custodians Bank recognises the importance of good in India. It has also recently as against `5. while the Assets Under is to make a meaningful and measurable Administration were at `1. 2016 rose to `2. Healthcare & Sanitation PRIVATE LIMITED (SBISG) SBI Foundation has been set up as a 100% subsidiary of State Bank of Education.20. 2015. 1961. and unweighted category from 3rd to 2nd improve sanitation and hygiene. restore SBI-SG has improved its ranking on and enhance environment. Its participated in the Global Custodian mission is to make available resources survey for sub-custodians in Emerging to the most vulnerable sections of the markets for the first time and was society directly and through strategic ranked 2nd best for technology and partnerships/collaborations with impact 3rd best for reporting. While forming the Foundation.69 crore in FY2015.152 crore in impact in the lives of economically. received registration under section 12A & section 80G of the Income The Assets Under Custody as on 31st Tax Act. communities. SBI Foundation (SBIF) making entities in the social and Marketing Initiative of the Year 2015 by development sector to create inclusive In order to consolidate the CSR India Insurance Awards. March. SBI-SG stakeholders and community at large. State Bank of India | Annual Report 2015-16 101 . the Companies Act 2013 for carrying Women Empowerment and Care was set up to offer high quality custody out CSR activities for the State Bank for Senior Citizens and fund administration services to Group. SBI SG GLOBAL a separate entity in the form of a the following areas: SECURITIES SERVICES Section 8 Company was conceived. SBISG commenced Foundation for carrying out their CSR commercial operations in Custody activities.587 crore as on 31st The aim of your Bank’s CSR philosophy March.090 crore in physically and socially deprived March 2015. planned and an The foundation will place its focus on impactful manner. a joint venture between State India as a Section 8 Company under Development Bank of India and Societe Generale. and natural resources.32.66 crore in FY2016 out its activities. same in a structured.69.Awards and recognitions include J. Shri P. consequent upon completion of their terms. SEBI.Mukherjee retired from the Board w.K. was nominated as GoI Nominee material departures. that proper system had been devised to ensure compliance with the Chairman provisions of all applicable laws and that such systems were adequate and Date: 27th May. Dr. and Central Board of Directors vi. that they have selected such Shri Rajnish Kumar and Shri P. their patronage and support. that they have taken proper and Directors welcomed the new Directors Ms. accordance with the provisions of the Banking Regulation Act.f. profit and loss of Your Bank for the year Shri Harichandra Bahadur Singh.f. 102 State Bank of India | Annual Report 2015-16 . prudent. Dr. 1949 The Directors expressed their gratitude for the guidance and co-operation received and State Bank of India Act. Dr. Rajiv Kumar.K. Dr. rating agencies and other stakeholders for accounts on a going concern basis.e.K.e.f. and take this opportunity to express their appreciation v. 28th January. 26th May and 2nd November. ii. Adhia and Shri P. Ahuja and Dr. consistently and made judgements Girish K. Pradeep Kumar to the deliberations of the Board.Gupta were appointed as Managing Directors accounting policies and applied them under section 19(b) w. 23rd September & 3rd i. Shri Harichandra Bahadur Singh and Shri The Board of Directors hereby states: S. that they have prepared the annual financial institutions. 5th August. 1955 for from the Government of India.Directors’ Report VI. Responsibility VII. Ahuja and Dr. The iii. that the internal financial controls for the dedicated and committed team of employees of your Bank. Rajiv Kumar.f. 2015. 2015 and Ms.e. 2nd with proper explanation relating to September. Director in his place w. RBI. 2016 on the Board. Girish K. Hasmukh Adhia. Shri S. Anjuly Chib Duggal.f.CBG retired on attaining superannuation standards have been followed along on 31st October.Pushpendra Rai on of adequate accounting records in the Board. Shri Rajnish sufficient care for the maintenance Kumar. and preventing and detecting frauds and other irregularities. so as to give a true and fair view of the state of affairs of your Bank The Directors place on record their appreciation for the contributions as on the 31st March. IRDA and other government and safeguarding the assets of your Bank regulatory agencies.e. Managing Director . 3rd September. Anjuly Chib Duggal. Gupta. retired from the Board w. the applicable accounting Pradeep Kumar. Hasmukh ended on that date. 2015 respectively and Dr. had been laid down. and of the made by the respective outgoing Directors.K. stock exchanges. 2015. that in the preparation of the annual October. Shri P.e. 2016 operating effectively. the Directors thank all the valued clients. Above all. banks and iv. 2015 respectively. Mukherjee. shareholders.Pushpendra Rai were nominated as Directors under section and estimates as are reasonable and 19(d) w. AcknowledgementS Statement During the year. namely. accounts. to be followed by your Bank and that such internal For and on behalf of the financial controls are adequate and were operating effectively. 2016. Dr. . monitoring. is made responsible in respect of Board under section 19(b) of SBI Act. and reports deviations. integrity in communication and to Accountancy. 2016. i. Act & Regulations 1955. provisions of Corporate Governance time Directors. Board has the whole information to all concerned. Establishing clearly documented and transparent management constituted according to the Act. accurate and clear The Bank has complied with the Academics.. Economics and make available full. Government under Section 19(e). advices and Governance. control and in compliance with the provisions of SBI of Governance reporting. decision. among others. of Directors meets regularly. and facilitates effective management and Board for the ultimate performance of Maximising the interests of its control of business. 19(a) of SBI Act. regulations and other are whole time Directors. The State Bank of India Act. four Managing Directors To protect and enhance Ensuring that a senior executive are also appointed members of the shareholder value. compliance issues with all applicable The Chairman and Managing Directors To protect the interest of all other statutes. there were nine other employees and society at large. appointed under section summarised as: Act. and Composition Establishing a framework of State Bank of India was formed in one director (official from the strategic control and continuously 1955 by an Act of the Parliament. nominated by the Central business and functional matters and Central Board: Role and monitors Bank’s performance. was as under: except where the provisions of these To provide corporate leadership of regulations are not in conformity with four directors. performance and customer service and Disclosure Requirements) Regulations. The State Bank of India Act. provides the Bank is furnished below: effective leadership and insights in one director (official from the Govt. of India). A three directors. to maintain a high level of business policies laid down by the Board. Bank. Finance. powers from and carries out its functions Philosophy on Code making. in letter and in spirit. procedures. professionals representing Technology. The Overseeing the risk profile of the resources as are necessary to enable it Bank believes that good Corporate to carry out its role effectively. responsibility for all aspects of executive requirements. best practices in the area of Corporate to all relevant information. 104 State Bank of India | Annual Report 2015-16 . As on 31st stakeholders such as customers. The ethics and to optimise the value for all role of the Chairman and the Board of The Central Board is headed by the its stakeholders. nominated by reviewing its efficacy. Good governance management and is accountable to the Ensuring expert management. comprising Chairman To ensure accountability for as per SEBI (Listing Obligations & and four Managing Directors in office. 1955 the Central Government under Section (Act). A Central Board of Directors was 19(f). elected by the highest standard for others to emulate. Governance is much more than Monitoring the integrity of its Ensuring that the Chairman has the complying with legal and regulatory business and control mechanisms. Thus. GOI/RBI and other regulators and the directors on the Board who are eminent To ensure transparency and Board. policies as laid down by the March. 1955 and Shareholders under Section 19(c). The objectives can be Directors are also guided by the SBI Chairman.e. 2015 with the Stock Exchanges as on 31st March. the directives issued by RBI/GOI. 2016. enables the Bank the Bank and implementation of the stakeholders.Corporate Governance The Bank’s processes for policy development. the composition of the Central Board. Reserve Bank of India). if any. to achieve excellence at all levels. nominated by the The Bank is committed to: report on the implementation of these Central Government under Section Ensuring that the Bank’s Board provisions of Corporate Governance in 19(d). The Bank’s Central Board draws its implementation and review. Its major roles State Bank of India is committed to the Providing free access to the Board include. 1955 with all relevant amendments. 08. Shri B Sriram. directorships/memberships held by During the year 2015-16. Arundhati Bhattacharya.12. MD – A&S 12 11 Shri Rajnish Kumar. K. Anjuly Chib Duggal (w.2016. Dates & Attendance of Directors at Board Meetings during 2015-16 No.08. the Managing Directors. The ECCB meetings Board (ECCB) is constituted in terms of Chairman.K. 1955.2015.10.02.2015. Amin 12 09 Shri S.09. subject to the nominee).2016) 02 02 Ms. 02. 03.2015) 05 05 Shri Sanjiv Malhotra 12 07 Shri M.10. the are held once every week.2016. Pushpendra Rai (w.2015.04.2015) 04 01 Shri Harichandra Bahadur Singh (upto 23.f. Disclosure Requirements) Regulations.The composition of the Board complies A brief resume of each of the Meetings of the Central Board with provisions laid down in Regulation Non-Executive Directors is given The Bank’s Central Board has to 17(1) of SEBI (Listing Obligations & in Annexure-I.2015.f. ECCB consists of the meeting is held.f. of Meetings held : 12 Dates of the Meetings : 22.e.e.f. 09.2015.G.03. MD – CBG (upto 31. 28. Rajiv Kumar (upto 05.2015.09. Particulars of the meet a minimum of six times in a year.2015) 07 07 Shri V. 11. 11. Chairman.2015 to 31.e.10. 11. There is no inter-se relationship all the Directors in various Boards/ Board Meetings were held. Pradeep Kumar.11.11. 10.2015. of Meetings held after No. 26.2015 ) 05 00 Dr. Mallya 12 09 Shri Deepak I.01.e.09. The details Section 30 of the SBI Act. MD – C&R (w. 22.10.05.11.01. Ahuja (w.e. The Director nominated under Section 19(f) of attendance of ECCB Meetings during State Bank of India General Regulations of the SBI Act (Reserve Bank of India the year 2015-16 are as under: (46 & 47) provide that. Patel 12 07 Executive Committee of the general or special directions of the Directors who are normally residents Central Board Central Board. and all or any of the other State Bank of India | Annual Report 2015-16 105 .09. Director attended all the twelve meetings Name of the Director No.D.2015. Mukherjee (upto 03. Girish K. Gupta. ECCB may deal with or may for the time being be present any matter within the competence of the at any place within India where the The Executive Committee of the Central Central Board.05. 26.f. 28. Hasmukh Adhia (upto 02.06. Committees are given in Annexure-II of the meetings and attendance of the and the details of their Shareholding in directors are as under: the Bank are mentioned in Annexure-III.f. twelve Central 2015.2016 Smt. 01. 22.2015) 06 04 Shri Tribhuwan Nath Chaturvedi 12 06 Dr. Kannan.2015) 07 02 Dr. Urjit R.2015.07. The dates between Directors. MD-CBG & Shri Sunil Mehta.2015) & MD –NBG 10 09 (w. 30. 06.01. 19.e. MD – C&R (w. of nomination/ election/during Meetings incumbency attended Shri P.2015) Shri P.2015) 06 05 Dr.2016) 02 02 Dr. 2015 ) 4 Shri V. Patel 52 01 Directors who are normally not residents of the place of Meetings but were present on the day at the place where the Meeting was held: 12 Shri S. and Committee for Identification of on policy issues and/or review domain 2015 to the extent that they do not Wilful Defaulters / Non-Co-operative performance. of No. IT Strategy Committee. Directors No. Gupta MD – C&R ( w.10. MD – CBG (upto 31. the Central of customer service and redressal brief reports on the discussions held Board has constituted ten Board Level of customer grievances. Technology at the meetings of the Committees are Committees viz.Corporate Governance Attendance of Directors at ECCB Meetings during 2015-16 No. Pushpendra Rai (w. crore and above). 02.2015) 04 04 13 Dr. Risk Management Committee.01.2015) and MD-CBG 52 45 ( w. Management. by RBI. Rajiv Kumar ( upto 05. resolution of the services of top executives from In terms of the provisions of SBI Act Shareholders’/Investors’ grievances.2015) and 45 40 MD-NBG (w.G.10.f. Pradeep Kumar.11. 01. Special Committee of the Board for to Executive Directors and Oversight Audit Committee of the Board on Recovery of Loans and Advances. as per the Calendar of violate the directives/guidelines issued Borrowers.2015) 01 01 14 Shri Harichandra Bahadur Singh (upto 23.e. 1955 and Fraud Review and Control.2016) 01 01 Other Board Level conduct of Board level business in The Committees also call external Committees: key areas like Audit & Accounts. March. effective professional support in the 106 State Bank of India | Annual Report 2015-16 . of Meetings held : 52 S.e. specialists.f. Kannan MD – A&S 52 45 5 Shri Rajnish Kumar MD – C&R (w.D. The and General Regulations. Chairman 52 51 2 Shri P. Sriram MD – NBG (upto 31.01.f. as and when needed. the RBI guidelines and complies with the Committee. once in a year. Payment of Incentives Stakeholders Relationship Committee. other Committees meet periodically. payment 1994 and last re-constituted on the 30th Committee.e. These Committees provide reviews approved by the Central Board. responsibilities.09.2015) 30 29 3 Shri B.11.2015) 13 13 15 Shri Tribhuwan Nath Chaturvedi 04 04 16 Dr.f.f./RBI/SEBI guidelines. K. The Audit Committee of the Board Monitoring of Large Value Frauds (`1 While the Remuneration Committee (ACB) was constituted on 27th July.01. besides drawing upon Risk Management. Audit Committee.f.10.2015 to 31. Remuneration Committee.10.2016) 01 01 17 Dr. of Meetings held after No. of India guidelines. Girish K. 26. nomination/ election/during Meetings incumbency attended 1 Smt Arundhati Bhattacharya. 2016.e. provisions of SEBI (Listing Obligations & Board Committee to Monitor Recovery once in a quarter normally. Amin 52 44 11 Dr. of incentives to wholetime Directors. Customer Service approves. Corporate Social placed before the Central Board. Urjit R. 28. the Bank. Review minutes and proceedings containing Govt.05.e. The ACB functions as per Corporate Social Responsibility based on Govt.2015) 22 18 7 Shri Sanjiv Malhotra 52 33 8 Shri M. Mukherjee (upto 03. Mallya 52 39 9 Shri Sunil Mehta 52 50 10 Shri Deepak I.e. 28.2015) 6 Shri P. to deliberate Disclosure Requirements) Regulations.08.K. Ahuja (w.11. K.f. the Board of Directors.2015) & MD – CBG (w.Functions of ACB KYC-AML guidelines. is in place and updated (a) ACB provides direction as also Major areas of housekeeping. non- performance from time to time. 10. 1949 and Long constitution and quorum requirements. Bank to ensure greater transparency. up of : Dates of Meetings of ACB held & Attendance of Directors during 2015-16 No. Anjuly Chib Duggal (w. Chairman of the Committee (upto 21.2015) 06 00 Dr. MD – NBG (upto 31.12.e.08.2015. Meetings of the (b) ACB reviews the Bank’s financial. MD – CBG (upto 31. are complied Auditors and other Internal Audit with meticulously. and RBI) and four non-official. periodically.11.f. Composition & Attendance Regulations. It interacts with the external eleven meetings of ACB were held to inspection/audit plan and functions in auditors before the finalisation of the review the various matters connected the Bank – the system. Total audit Obligations & Disclosure Requirements) function implies the organisation.2015.G. 22. 26.e. 22.04.04.2015) & MD-NBG (w. Urjit R.e. Sriram.06.05. During the year.2015) 06 05 Shri B. (e) ACB follows up on all the issues executive Directors.11.2015) 09 07 Dr.05. 03 Shri Rajnish Kumar.2015.09.2015) 04 00 Dr.09. including external audit. Amin (w. Patel 11 06 State Bank of India | Annual Report 2015-16 107 .e.2015) 01 01 Shri Sunil Mehta. A formal ‘Audit Charter’ or procedures and other aspects as also. focuses on the follow ‘Terms of Reference’ laid down by the required in terms of RBI guidelines.2015) Shri P.2015 ) 05 00 Ms.01.2016. of Meetings held after No. It also appoints Statutory from the Compliance Department in the executive Directors (nominees of GOI Auditors of the Bank and review their Bank. Form Audit Reports of the Statutory as per RBI guidelines. of nomination / election / Meetings during tenure attended Shri Sanjiv Malhotra. (c) ACB reviews the internal Reports.10. 05.2015 & Member of 11 11 the Committee (upto 21. 10.2016. Kannan.10. MD – C&R (w.04. Central Board. 05.02.f. Pradeep Kumar. Hasmukh Adhia (upto 02.f. especially.w. 03. 29. Compliance of SEBI (Listing audit function in the Bank. Gupta.11.2015. 18. 2015. Chairman of the Committee .2015) 01 01 Shri P.f.2015. two non- inspection.01. the last revision effected oversees the operation of the total from 18th December.07.2015.08.10. The and Accounting Policies/Systems of the Banking Regulation Act. It and reports. 14.06. of Meetings held : 11 Dates of the Meetings : 08.2015) 04 04 Shri M. raised in RBI’s Annual Financial ACB are chaired by a Non-Executive Risk Management. compliance of RBI (d) It obtains and reviews reports two whole time Directors. 30.2015) 11 09 Shri V. 21.04.03. systems and effectiveness in terms of follow-up.11. 01.e. Rajiv Kumar (upto 05.2015. 06. its quality and annual/quarterly financial accounts with the internal control.2016 Name of the Director No.2015.D. 2014. MD – C&R (w.f. IS Audit Policies Inspection Reports under Section 35 of Director (Chartered Accountant). MD – A&S (Alternate Member) . operationalisation and quality control of during 2015-16 Status of implementation of Ghosh internal audit and inspection within the The ACB has eight members of Bank and follow-up on the statutory/ Committee recommendations.e. Mallya 11 09 Shri Deepak I.f. 26.e. etc. to oversee RMCB were held.2015) 01 01 Shri P. During 2015-16.2015 to 31. The Committee met four times during Requirements) Regulations.Kannan. of Meetings held after No. formed on the 30th and has. market risk and operational risk. 24.10.e. 02 Shri Rajnish Kumar. role complies with the SEBI guidelines.11.08. The into the redressal of security holders composition of the Committee and its In pursuance of Regulation 20 of complaints regarding transfer of shares. 06.K.Gupta. Mallya 04 02 Shri Sunil Mehta 04 03 Shri Deepak I.09. 2016 and has. Dates of Meetings of RMCB held & Attendance of Directors during 2015-16 No. MD-C&R (w. five members and is chaired Committee January. 23.e.G. SEBI (Listing Obligations & Disclosure non-receipt of annual report.2015. receipt of interest on bonds/declared 2015-16 and reviewed the position of Stakeholders Relationship Committee dividends.11. 2016 Investors’ Grievance Committee of the 108 State Bank of India | Annual Report 2015-16 .f.2015) 02 01 Shri B.D. non.06. MD – CBG (upto 31.2015) 01 00 Stakeholders Relationship Board (SIGCB).2015. (SRC) [earlier known as Shareholders’/ last reconstituted on 30th March.2015) Shri V.2015) 02 01 Shri Sanjiv Malhotra 04 02 Shri M.f. Amin 04 04 Shri Tribhuwan Nath Chaturvedi 04 02 Dr. The Senior Managing of the Board risk management relating to credit Director is the Chairman of the risk. 2015. four meetings of the on the 23rd March. once in each quarter. MD – C&R (w.2016 Name of the Director No. Pradeep Kumar.Corporate Governance Risk Management Committee the policy and strategy for integrated eight members. Committee. 19. MD A&S (Alternate member) . the Board (RMCB) was constituted on the 30th March.e.10. 01. of nomination / election / Meetings during tenure attended Shri P. 2001] was formed to look by a Non-Executive Director.11. Rajiv Kumar (upto 05.2015. Sriram.f.06.2015 as Alternate Member) & MD – CBG 04 03 (w. of Meetings held : 4 Dates of the Meetings : 30. 26. MD-NBG (upto 31. RMCB meets a minimum of The Risk Management Committee of The Committee was last reconstituted four times a year. The Committee was complaints. 2004.02.10. 04. monitoring progress of CBI/ Number of complaints not solved to the Value Frauds (`1 crore and Police investigation.08. measures. MD – A&S 04 04 Shri Rajnish Kumar.e.2015) & MD –NBG 03 03 (w.Mallya – Chairman of the Committee 04 03 Shri B.07. General to prevent recurrence of frauds and (`1 crore and above) (SCBMF) was Manager (Compliance) & Compliance putting in place suitable preventive constituted on 29th March.11.2015) Shri Sunil Mehta 04 04 Shri Deepak I.01.2015. if any. of Meetings held : 4 Dates of the Meetings : 17. 2004. received so far (during the year): 1085 Board for Monitoring of Large if any.D. The Committee met four times during 2015-16: State Bank of India | Annual Report 2015-16 109 . The Senior value frauds with a view to identifying Managing Director on the Committee is systemic lacunae.2015 to 29. of Meetings held after No. Amin 04 04 Shri Sanjiv Malhotra (upto 22. Officer. Kannan. 26.f.10. satisfaction of shareholders: Nil above) ensuring that staff accountability Number of Pending Complaints: Nil exercise is completed quickly.04. of nomination / election / Meetings during tenure attended Shri M. 16. MD – NBG (upto 25.06.e. MD – C&R (w. reviewing The Special Committee of the Board Name and designation of Compliance the efficacy of remedial action taken for monitoring of Large Value Frauds officer: Shri Anil Kumar Gupta. recovery position. The Committee was last The major functions of the Committee reconstituted on the 30th March.2016) 02 01 Dr.2016 Name of the Director No. eight members.2015 to 31. reasons the Chairman.2015.06. 15.e.10.f.f. 2016 are to monitor and review all large and has. Sriram.G.2015) 01 01 Shri V.11. 28.03. 06.2015 and w. Rajiv Kumar (upto 05.2015) 02 01 Number of shareholders’ complaints Special Committee of the for delay in detection and reporting.01.2015) 02 00 Shri Harichandra Bahadur Singh (upto 23.09.2015.Dates of Meetings of SRC held & Attendance of Directors during 2015-16 No. The Committee was last 2015-16.f. 2011.e.10. of the Bank’s IT initiatives.2015.f .09.11.e. of Meetings held : 4 Dates of the Meetings : 29. MD – CBG (upto 31. to bring about ongoing and has.e. MD-NBG (w. Kannan.f. 02 02 Alternate Member ) Shri Rajnish Kumar. 06. Pradeep Kumar.2015) 03 01 Shri Rajnish Kumar.e.D.11. Gupta. The Committee management has put an effective With a view to tracking the progress has played a strategic role in the Bank’s strategic planning process in place.2016) 01 00 Shri M. on 26th August.2015.12. MD – NBG (upto 31.11.Corporate Governance Dates of Meetings of SCBMF held & Attendance of Directors during 2015-16 No.2015) 02 01 Shri B. four meetings of the Board (CSCB) was constituted on 26th reconstituted on 30th March. 2004.11.11. The Senior of the Board improvements on a continuous basis in Managing Director on the Committee the quality of customer service provided is the Chairman.10. the technology domain. seven members.10.2015 as Alternate Member) 03 03 Shri B.11. During the year The Customer Service Committee of the by the Bank. MD – CBG (upto 31.G. The Committee is (ii) ensuring that the IT Organisational Bank’s Central Board constituted a entrusted with the following roles and structure complements the business Technology Committee of the Board responsibilities: model and its direction . Amin 04 03 Shri Tribhuwan Nath Chaturvedi 04 04 Shri Harichandra Bahadur Singh (upto 23. 06.11. of Meetings held after No. of nomination / election / Meetings during tenure attended Shri P.2015) & MD-CBG (w. of nomination / election / Meetings during tenure attended Shri P.02.e. 16.09. Sriram. of Meetings held after No.2016 Name of the Director No. 01. 06.f.03.2015) 01 01 Shri Sanjiv Malhotra (w.2015. 04. Pradeep Kumar.2015.D.2016 Name of the Director No. Amin 04 03 Shri Harichandra Bahadur Singh (upto 23. The Technology 110 State Bank of India | Annual Report 2015-16 .2015) 02 01 IT Strategy Committee of the Committee has been renamed as IT (i) approving IT strategy and Board Strategy Committee of the Board w.2015) 02 02 Customer Service Committee August 2004.2015 .10.2015) 02 01 Shri P.2015. policy documents. Sriram.e. Mukherjee (upto 03. MD-NBG (upto 31. 16. K.e. MD-NBG (w.2015) 04 03 Shri V.2015 and upto 29. 26. Mallya 04 03 Shri Sunil Mehta 04 04 Shri Deepak I.08. 06. ensuring that the 24th October. Dates of Meetings of CSCB held & Attendance of Directors during 2015-16 No.f. 27.10. Mallya 04 01 Shri Sunil Mehta 04 04 Shri Deepak I.10.2015) 02 01 Shri Sanjiv Malhotra 04 02 Shri M.2015) 02 02 Shri S. 2016 Committee were held.08. 01.05.f.2015. MD – C&R (w.f.04. MD – A&S (upto 05.2015) & MD – CBG (w. of Meetings held : 4 Dates of the Meetings : 30. 05.03.K. 11. 06. Mallya 04 03 Shri Sunil Mehta 04 04 Shri Deepak I. 17. K.2016. 19.2015) 02 02 Shri B.09.Pradeep Kumar. During the year 2015-16.G. Sriram . 28.2015) 05 05 Shri V.06.f.e. 10. 15.f. The Committee met management’s monitoring of IT risks five times during 2015-16.09. 2014 as a measure Dates of Meetings of CSRC held & Attendance of Directors during 2015-16 No.2015.2015. the 24th September. MB – NBG (upto 31.G.2016) 01 00 State Bank of India | Annual Report 2015-16 111 .2015.2015) 02 00 Shri Tribhuwan Nath Chaturvedi (w.10. of Meetings held : 4 Dates of the Meetings : 22.D. held. The Corporate Social Responsibility The Committee was last reconstituted four meetings of the Committee were Committee (CSRC) was constituted on on the 30th March.D. MD-A&S (Alternate Member) .2015.Kannan.08.(iii) ensuring IT investments represent (v) reviewing IT performance The Committee was last reconstituted a balance of risks and benefits and that measurement and contribution of IT to on the 30th March.11. 06.f. Kannan MD – A&S 04 04 Shri Rajnish Kumar MD-NBG (w. Amin 04 02 Shri Harichandra Bahadur Singh (upto 23.11.2015) 01 01 Shri Sanjiv Malhotra 04 03 Shri M. Mallya 05 04 Shri Sunil Mehta 05 05 Corporate Social of good corporate governance to review six members. and overseeing the aggregate funding of IT at the Bank level. and Dates of Meetings of ITSC held & Attendance of Directors during 2015-16 No.11. of Meetings held : 5 Dates of the Meetings : 18.2015.10.03. 2016 and has. MD-CBG (upto 31. Sriram MD – NBG (upto 05.10.e. of nomination / election / Meetings during tenure attended Shri B. businesses (i.2016 Name of the Director No.2015) 03 02 Shri V.e. The Senior Managing Responsibility Committee the activities undertaken by Bank under Director on the Committee is the Corporate Social Responsibility Policy. 01.03. Chairman.e. of nomination / election / Meetings during tenure attended Shri Deepak I.2015) 03 02 Shri Sanjiv Malhotra 05 03 Shri M. of Meetings held after No. 06.04. Executive Director. delivering the promised members and is chaired by a Non- (iv) evaluating effectiveness of value).2015. of Meetings held after No. 09.11.11.e.f.01. 01. 2016 with six budgets are acceptable.2015 to 29. Gupta MD – C&R (w. 01 Shri P.2015) & MD-CBG (w. Chairman of the Committee 05 05 Shri P.2016 Name of the Director No.02. Amin. 000/. The Committee Defaulter/Non-Co-operative Borrower) Fees of ` 20. 2016. Corporate Governance. 2016. The Committee Nomination Committee of the of Other Board level Committees.000/-) for attending the meetings and Shri Deepak I. Declaration to this effect of Chairman. as per the scheme advised Director and Senior Executives of the Board and/or its Committee meetings. Mallya `5. Board. Central Board and ` 10. No remuneration. however. The Code of Conduct is Committee met four times during Local Boards exercise such powers posted on the Bank’s website. The Committee was constituted by In an effort to keep the Directors the Central Board in terms of RBI abreast with better understanding of instructions. 2015. Local Boards/Committees signed by the Chairman is placed in and the Govt. as and when required. Sitting on 30th March. Bank to examine the facts and record is paid to Non-Executive Directors. and arrive at the ‘fit and proper’ status In terms of Govt.3. Amin. review the Order of the “Committee the meetings of the Board/Committees for evaluating the performance of for Identification of Wilful Defaulters/ of the Board are as prescribed by GOI Whole Time Directors of the Bank Non-Co-operative Borrowers” (a from time to time. Nominee Director. Chairman. The remuneration of the whole-time The Remuneration Committee was Directors and the Sitting Fees paid to the The role of this Committee is to Non-Executive Directors for attending constituted on 22nd March. The Annexure-V. The of Local Boards are functional. 2007. the Bank took CBG is the Chairman of this Committee the following initiatives during the year: 112 State Bank of India | Annual Report 2015-16 . The Committee In terms of the provisions of SBI Act affirmed compliance with the Bank’s was last reconstituted on 30th March. of India advices. Managing other than the Sitting Fees for attending incentives.000/. (ii) the be considered final. at every Code of Conduct for the financial year 2016 and has six members consisting centre where the Bank has a Local Head 2015-16. to fees paid during the year 2015-16 are Recovery carry out necessary due diligence placed in Annexure-IV. Details of Sitting Board Committee to Monitor Directors. of Conduct at its meeting held on 20th December. The Committee was last reconstituted the fact of the Borrower being a Wilful With effect from 20th July. constitute a Nomination Committee of the Bank and GOI Nominee/RBI comprising of three independent Nominee Directors. As on 31st March.(earlier RBI Nominee Director and (iii) two non- executive Directors – Shri M. four Managing Directors Office (LHO). scrutinised and recommended payment Board: Sitting fees are. are placed before the Central Board. and General Regulations 1955.D. a Board Committee to Monitor Recovery of candidates filing nominations for Compliance with Bank’s Code was constituted by the Central Board election as Directors by shareholders.(earlier `10. in connection with the payment of Committee comprising Dy.000/-) is has four members consisting of (i) the and confirm the same for the Order to paid for attending the Meetings of the Government Nominee Director. not paid to of incentives to whole time Directors for In terms of RBI guidelines. 2007. the year and reviewed the NPA and perform such other functions and management and large NPA accounts duties delegated to them by the Central Developments during the year of the Bank. Board and its Defaulters / Non-Co-operative Proceedings of the meetings of Local Committees and the same was taken Borrowers Boards/Committees of Local Boards on record by the Central Board. The Managing Director. The Minutes and Directors. Local The Bank has introduced a Boards at Eight LHOs and Committees ‘Performance Evaluation Process’ for Review Committee for of the Local Boards at the remaining Six evaluation of the performance of the Identification of Wilful LHOs were functional. the Bank the Chairman and Managing Directors the year ended 31.2015. by Government of India in March.Corporate Governance Remuneration Committee of and any two independent Directors are Sitting Fees the Board members. The Directors on the Bank’s Central 2012 for oversight on Recovery of Local Boards Board and Senior Management have Loans and Advances. State Bank of India | Annual Report 2015-16 113 .00 949335.90 934690. a leading by Boards of premier institutions.00 700000. The familiaristaion programme of with domain expertise in areas like organised by Quest on the FRONTIER directors are available on our website – Governance. No penalties or Mukherjee. The Board during the meet laid down its com under link Corporate Governance.00 481990.2015) 553295. Shri Harichandra Bahdur Singh. held on 2nd July. Chavan Directors or Management.00 307918.Pradeep Kumar (01.03. Technology etc. Shri through Postal Ballot.2015 to 31.G.03.36 3403118.00 p.2016) 374983. Pradeep Kumar. and Director Excellence conducted by AS in Banks was arranged through thinking and best practices followed Dr. from Chartered Accountant firm. 2013.04.10.co.81 2293706. presented by eminent professionals 9th to 11th March.33 3084054. All party transactions with its Promoters. a renowned M/s Kalyaniwalla & Mistry. The detailed Action Plan various Regulatory.73 62500.2015 to 31. A blend of the various strategic initiatives was put Financial Research and Learning brain storming sessions on various up to Central Board. Arundhati Bhattacharya. resolution is proposed to be conducted prescribed by stock exchanges.in /www. 2. AGM (2013-14) was held The Bank has not entered into strictures have been imposed by them on 3rd July. 2016 at Malaysia. supervisory and for the Board in Bangalore to enable it with specific timelines and ownership governances issues relating to Banks to appreciate the recent changes and and the progress report thereafter from 17th to 19th March. Kannan (01.2015 to 31. Shri M. current issues in banking environment especially focusing on effective.K. SEBI. Arundhati Bhattacharya 960000.statebankofindia.2015 to 31.00 658421. RBI or any other statutory authority V. B.00 1142400.49 3110318.15 425000. Mumbai at 3.00 65063. their General Meeting Centre.2016) 789997.00 1102398. a two days Strategy Meet had to come up with monitorable Public Sector Banks with an aim to bring (8th and 9th May.11 1082109. Shri P. (CAFRAL) at Delhi.03. etc.m.05 600000.2016) 926385. Sriram (01.1.00 1102398.11. was attended by 8 Directors. PTE LTD. (i) Two Directors participated at (iii) A presentation in regard to incisive and transparent governance programme on Corporate Governance Roadmap for implementation of IND- with insight in International trends. was required to be passed through The Bank has complied with 2015.42 2867331. Kanan. relating to the capital markets during Disclosure the last three years. Postal Ballot during the last year and no applicable rules and regulations Smt.2015 to 31.49 (01.2016) Managing Directors Shri P. www. viz. Looking to the multiple and varied aspirations and set goals for Business (ii) Two Non Executive Directors demands being currently placed on the Growth and Key financial parameters participated at Programme for Non Boards of banks and concerns regarding and each individual Business Group Executive Directors on the Boards of governance. any materially significant related on the Bank. D.05.62 Attendance at the Annual three AGMs were held in Y. Sriram. 2016.. and no subsidiaries or relatives. was Corporate Governance Expert.15 425000. 2015) on a short term action plans with specific targets and about an awareness and understand ‘Vision 2018’ road map was organised milestones. Shri S.05 Parveen Kumar Gupta (02. 13) was held on 21st June.48 Rajnish Kumar (26. No resolution of the Bank at large.00 1080142.03.34 446230.sbi.04.04. 2014 and AGM (2012.00 630271.17 195833. Mallya and Shri Sunil Mehta.03. Salary and Allowances paid to the Chairman and Managing Directors in 2015-16 Name Basic DA Incentives Others Total Arrears Remuneration Chairman Smt.51 Shri V.. determine critical areas and actionables giving the status of implementation of organised by Centre for Advances for Board Governance. Colin Coulson-Thomas.2016) 926385.2015 to 31. G.86 Shri B. for the year 2014-15. Shri B. Shri Rajnish Kumar. Risk. HR.04. that may Special Resolutions were passed in have potential conflict with the interest The last Annual General Meeting (AGM) the previous three AGMs. D and E of Schedule V to Bank’s website displays. seniors/ and regulations made there under and various product offerings. Mumbai 400 093. the rules and quarterly results and details of practices of their co-workers. are declared. The Policy is an and para C . PIDPI guidelines or directives issued by the after the annual and half-yearly results complaint as applicable to customers Reserve Bank of India.2016 to 11.60 per share Payment Date : 22.03.m. Half-yearly Blower’ to expose any unethical. This is followed dealing with complaints.m. Listing fees have been paid upto date to all Stock exchanges. corporate governances-policies.co.2016 Dividend : `2.m Venue: Y. Marol. of the country. and 2 p.2016 Listing of securities on Stock Exchanges : BSE Limited Mumbai and National Stock Exchange. The of Informer (PIDPI). Cross Lane. transactions and policy for determining performance and product initiatives.2016.statebankofindia. internal reporting mechanism available the extent that the requirements of the official news releases of the Bank.00 p.00 p. interalia. MIDC Part B. including LSE. Government of India resolution on specified in Regulation 17 to 27 and com). Mumbai Shareholders Financial Calendar : 01. Time 03.2015 to 31. B. Registrar and Transfer : M/s Datamatics Financial Services Limited Agent and their Unit Address : Plot B-5. Every year. the to all staff of the Bank to act as a ‘Whistle Clause do not violate the provisions of Bank’s Annual Reports.m. Mumbai. GDRs listed on London Stock Exchange (LSE).2016 Period of Book Closure : 07. corrupt State Bank of India act 1955.in/ of the Bank for the year 2015-16 were the meeting.meet is held on are dealt with in line with Government of the same day. Quarterly Share transfer audit and reconciliation of Share Capital audit are regularly carried out by an independent Company Secretary. Details of the Bank’s performance ‘material’ subsidiaries are available Annual. However. a Press. in which the Chairman India guidelines 2004. Chavan Centre. of investment analysts are invited.com under link published in the leading newspapers results. half-yearly and quarterly results are discussed with the analysts in on the bank’s website-www.06.Corporate Governance The Whistle Blower Policy of The Bank has complied with the displayed on the Bank’s website (www. superiors in the Bank. stakeholders should have access to by another meeting to which a number Policy on materiality of related party complete information on its activities.in and www.00 p. which designated Means of Communication makes a presentation and answers the Central Vigilance Commission for The Bank strongly believes that all queries of the media.06. Andheri (E). to 6.06.sbi. after declaring quarterly www.statebankofindia. The results were also General Shareholder Information The Annual General Meeting of the : Date: 30.04. Board Phone Numbers : 022-6671 2001 to 10 (between 10 a. The Annual Report is sent to Public Interest Disclosure & Protection clauses (b) to (i) of Regulation 46(2) all shareholders of the Bank.co. Stock Code/CUSIP : Stock Code 500112 (BSE) SBIN (NSE) CUSIP US 856552203 (LSE) Share Transfer System : Share transfers in Physical form are processed and returned to the shareholders within stipulated time. the Bank is based on the norms of Corporate Governance requirements sbi.) Direct Numbers : 022-6671 2198 / 6671 2199 114 State Bank of India | Annual Report 2015-16 . press notifications are issued. to 1.06.m. 324 GDRs as on Government of India under Section 5(2) paise thirty only) from Government 31.in.99.. During the previous financial year.Kamani full contact details (Capital Instruments Marg.240 of the SBI Act.45.09.30 has permitted two-way fungibility to the FY 2015-16 (Rupees five thousand three hundred Bank’s GDR programme. The Bank Capital Augmentation during premium amount of ` 5373. on 29. whether received The Bank also received application equity shares of the Indian Company at the Bank’s offices or at the office of money of ` 5392. but redressed expeditiously and monitored two crore ninety nine lakh ninety nine not vice versa. of GDR desired to obtain the underlying investors’ grievances.59. 17.500 crore. we are issuing annual ninety nine lacs ninety nine thousand for 120 months (10 year bullet) by way report in electronic form to those nine hundred seventy seven and paise of private placement in four tranches.08 (Rupees two issued and allotted Basel III compliant State Bank of India | Annual Report 2015-16 115 . Later. i. issued Regulation.65.co.99.34.in Name of the debenture trustees with : IDBI Trusteeship Services Limited. thousand eight hundred thirty four of ADRs/GDRs was permitted by the and paise thirty only) including share Government of India/RBI.e. shareholders whose e-mail addresses eight only) including share premium The Instrument has been rated as are available. R. Telephone Numbers : (022) 2274 0841 to 2274 0848 Fax : (022) 2285 5348 E-mail Address : gm. the Bank raised of India against Preferential Issue of shares. the undernoted equity capital: 19. 1955. 14th Floor.03.2016 representing 14.08 “CARE AAA” by CARE Ratings and (Rupees two thousand nine hundred “ICRA AAA” by ICRA Limited. The on 01.444. The equity shares were allotted the Government/RBI.95. Corporate Centre. Shares & Bonds Department. two-way fungibility at the Top Management level. Investors’ Care fifty nine crore ninety five lakh twenty To meet various requirements of the two thousand nine hundred sixty five Outstanding Global Depository investors regarding their holdings. the Bank received application money We may also add that.2015.59. Nariman Point.977.2015.04.com Fax : (022) 6671 2204 Address for Correspondence : State Bank of India.Shares & Bonds Department .93.complaints@sbi. Ground Floor. Ballard Estate. Mumbai 400 021.77. are five thousand three hundred ninety into shares of the Indian Company. Madam Cama Road. Asian
[email protected] equity shares of `1 each two-way fungibility was not permitted by Mumbai and Shares & Bonds Cells to GoI.965.99. Mumbai-400 001 Fax Number: 91-22-6631 1776 issued in INR) e-Initiative: In accordance with SEBI thousand nine hundred sixty nine crore Tier 2 bonds of INR 10. if the holder at the 14 Local Head Offices.co.834. the and paise eight only) from Government Receipts (GDR) Bank has a full-fledged Department of India against Preferential Issue of At the time of issue of GDRs in 1996. State Bank Bhavan.390 equity shares of `1 each to GoI. the Bank has of ` 2969.30 (Rupees then such GDR was to be converted the registrar and transfer agents. / investor.E-mail address :
[email protected] 10.99.22.44. . Pursuant to the approvals from seventy three crore thirty four lakh forty the Reserve Bank of India and the thousand four hundred forty four and The Bank had 1. amount of ` 2959.04. 00 240.00 200.00 280.00 Maximum Price 28500.00 140.00 29000. who approached the Issuer for transfer of shares 32 5.00 23500.00 uninterrupted dividend payment to the Price (`) Sensxe 26000.00 26500.00 Sensex 28000.00 180.00 220.00 7300.00 7460.00 180.00 7140.13% in NSE Nifty as on 31.00 8740.00 Price (`) 7780.00 The movement of the share price 23000.00 Nifty 7620.00 Share Price Movement 24000.00 320.00 presented in the following tables.290 Unclaimed Suspense account at the beginning of the year Number of shareholders.00 Minimum Price 29500.00 320.00 6820.00 6660.00 27500.00 Nifty 8420.048 2.00 Dividend History 300.00 shareholders for the last many years.00 260.71% in BSE Sensex and 2.43.870 Unclaimed Suspense account at the end of the year The voting rights on these shares shall remain frozen till the rightful owner of SBI Stock Performance at BSE such shares claims the shares 340.00 140.00 240.00 1-Apr 16-Apr 1-May 16-May 31-May 15-Jun 30-Jun 15-Jul 30-Jul 14-Aug 29-Aug 13-Sep 28-Sep 13-Oct 28-Oct 12-Nov 27-Nov 12-Dec 27-Dec 11-Jan 26-Jan 10-Feb 25-Feb 11-Mar 26-Mar 116 State Bank of India | Annual Report 2015-16 .00 and the BSE Sensex/ NSE Nifty is 22500.00 24500.420 from the Unclaimed Suspense account during the year Number of shareholders to whom shares were transferred from the Unclaimed 32 5.00 160.00 8100.00 200.00 6500.00 160.00 Maximum Price 8580.00 280.420 Suspense account during the year Aggregate number of shareholders and the outstanding shares lying in the 1.03.00 220. SBI Stock Performance at NSE 340.49.00 260.00 8260.00 25000.00 300.2016.Corporate Governance Unclaimed Shares Category of shareholder No.00 Minimum Price 8900.00 6980.00 22000. 25500. of Shareholders Outstanding Shares Aggregate number of shareholders and the outstanding shares lying in the 1.00 SBI has the distinction of making 27000.00 7940. The 1-Apr 16-Apr 1-May 16-May 31-May 15-Jun 30-Jun 15-Jul 30-Jul 14-Aug 29-Aug 13-Sep 28-Sep 13-Oct 28-Oct 12-Nov 27-Nov 12-Dec 27-Dec 11-Jan 26-Jan 10-Feb 25-Feb 11-Mar 26-Mar market capitalisation of the Bank’s shares had a weightage of 2.016 2. 85 240.00 45. Name % of Shares in Total Equity 1 President of India 60.60.25 35.60 252. Economic Value Added (EVA) ` 3.85 224.30 181.00 24.18 2 Life Insurance Corporation of India .15 37.40 39.90 263.03. as on 31.60 228. No.15 46.55 30.90 234.00 259.00 251.85 43.56 8 General Insurance Corporation of India (Financial Institution) 0.25 33.90 38.03.35 Dec-15 251. No.65 46.50 Jan-16 228.25 25.00 232.60 248.95 305. Limited (Private Corporate Bodies) 0.90 232.(financial institutions) 11.95 148.Table: Market Price Data Months BSE (INR) NSE (INR) LSE (GDR) US$ High Low High Low High Low Apr-15 294.85 294.30 35.86 5 Reliance Capital Trustee Co.53 10 SBI Mutual Fund (Mutual Fund) 0.00 248.90 4 Private Corporate Bodies 2.50 148.75 Nov-15 252.10 291.2016 Sr.00 37.50 Oct-15 257. etc.50 State Bank of India | Annual Report 2015-16 117 .80 240.75 Feb-16 182.72 7 ICICI Prudential life Insurance Co.08 4 The Bank of New York Mellon (As Depository To Our GDR) 1.33 Total 100.09 6 Skagen Kon-Tiki Verdip Apirfond (Foreign Institutional Investors) 0.00 259.95 249.75 158.40 274.15 282.60 39.35 33.50 220.70 Jun-15 281.85 Sep-15 248.90 171.15 Jul-15 274.75 159. 12.30 Book value per share ` 176.80 22.2016 Sr. Limited (Mutual Fund) 1.00 40.54 9 Abu Dhabi Investment Authority (Foreign Institutional Investors) 0.45 35.75 5 Banks/ FIs/ Insurance Cos.00 198.00 Top Ten Shareholders.65 6 Others (including Resident Individuals) 7.15 234.19 3 Mutual Funds & UTI 5.50 32.30 42. Description % to Total 1 President of India 60.50 263.85 253.70 May-15 305.90 257.60 Aug-15 291.25 Mar-16 198.65 252..18 2 Non-residents (FIIs/OCBs/NRIs/GDRs) 11. 875 crore Shareholding Pattern as on 31.70 37.40 41.85 25.45 220.90 224.90 171.27 3 HDFC Trustee Company Limited (Mutual Fund) 2. 050 717. Share Holders No.256 3.. The Bank has a as customer eligibility criteria (credit customers to hedge their exposures world class Dealing Room manned by rating.240 0.821 92. The Bank currently deals in over-the- movements in exchange rate and counter (OTC) currency derivatives Bank also gets exposed to foreign ii) credit risk i.516 shares representing 98.01. duration. do the cover operations and hedging. Shares Shares % NSDL 966579 2774084092 35.363 0.376 0. both for trading as well as for the market risk parameters (cut-loss down policies and systems & procedure hedging of balance sheet items.042 100.736 CDSL 514694 4899567424 63. 2016 (Face value of ` 1 each) Range No. open position limits.000 776. various types of loss limits and Greek transactions only with counterparties measures. The Bank’s “Policy for Derivatives” and these are undertaken on behalf options. policy (CAS) etc.008 64. limits and and the Bank also enters into derivative well trained and experienced dealers to customer appropriateness & suitability contracts for cover of such exposures.148 TOTAL 1659640 7762777042 100.11.479 TOTAL 1. As on 31st March 2016.659. Bank fail to meet their obligations.294 20001-30000 452 0. Derivatives are used by the approved by the Board prescribes of customers only..25. tenure of relationship.216 5001-10000 4255 0.66. 767.539 0. Description No.593 6. The Bank has laid Bank.116 Physical 178367 89125526 1.67. monitors market risk limits.) for entering into The bank also runs an Option Book in derivative transactions. Policy.36.098 2.27. Kolkata. As on 31st March.34.e. PV01.63. of Shares Total Holders % to Total Holders Total Holdings in ` % toTotal Capital 1-5000 1651800 99.77. etc.Corporate Governance Dematerialization of Shares and Liquidity: Bank’s equity shares are compulsorily traded in the electronic form. Currency is only into Gold Banking Business as Futures.) as well prescribed risk limits. which is managed through controlled by entering into derivative Department (MRMD) identifies.72. The triggers.296 100001-ABOVE 835 0.084 50001-100000 316 0. there is satisfying the criteria prescribed in the associated with derivative transactions. Appropriate limits are set for The back office operations are handled the counterparties taking into account by GMU. by the Bank are Forwards.529 48.000 Distribution Schedule As on 31st March.019 2.e. Currency derivatives dealt account of customer transactions.82. currency swaps and currency far as Commodity Risk is concerned.000 Commodity price risk or Derivative transactions carry the their ability to honour obligations and foreign exchange risk and following two risks: the Bank enters into International hedging activities i) market risk i.85% of total equity capital were held in electronic form.099 40001-50000 141 0.013 76.388 10001-20000 1625 0. no breach in loss limits or greek limits.59.306 0. Credit risk is The Bank’s Market Risk Management USD/INR.89.51. 118 State Bank of India | Annual Report 2015-16 .28. the probable loss Swap & Derivative Association (ISDA) the Bank may incur as a result of adverse agreement with each counterparty.640 100. the probable loss and exchange traded currency exchange risk and commodity risk on the Bank may incur if the counterparties derivatives.027 1.144 30001-40000 216 0.29. 2016.30. in place to manage the risk within hedging products are offered to Bank’s modified duration.804 0. Annexure I Leasing. etc. Pennsylvania. Streamserve. co-founder and CEO of Covelix.e. Inc. Advisory Board of Grameen Foundation Mortgage Guaranty and Aircraft of Nobel Laureate Dr.. University of of three years (27th December. women. Shri worked at Microsoft for many years as international and domestic taxation. Bank achieving excellent performance Computer Science from University of and receiving wide recognition in the Rhode Island. USA. a January. Shri Tribhuwan Nath Chaturvedi is Shri Malhotra has 41 years of Global Shri Mehta is also closely associated a Director nominated by the Central Banking and Finance experience in with several not for profit organizations. in Computer Authority (NOIDA) for a period of three strategic steps initiated. in years from 30.) Prior to this. Shri Chaturvedi earlier served Mallya worked towards turnaround the Institute of Chartered Accountants as Shareholder Director on the Board of the Bank. 1951) to other notable organizations as well. 2008 to November.Tech. w. to 26th December. Mehta was responsible for setting up in a lead engineer in Microsoft Windows joint ventures. Explorer browser team at Microsoft. for a Corporate and Investment Banking. 2011). w. Home & Consumer USA.S. SPM Capital Advisers Private Limited and is Shri Tribhuwan Nath Chaturvedi Shri Sanjiv Malhotra a Board Member and Senior Adviser (Date of Birth: 15th January. 1959) (Date of Birth: 1st October. HR and School of Management. Private Equity. Amin Pradesh as Director on the Board of during May. Shri Mehta worked at Citibank Yunus providing scalable financial and Brief Resumes of the Non-Executive for 18 years in various senior positions technology solutions for improving Directors on the Board as on 31st which included Head of the Corporate financial inclusion of the world’s poorest March. and Action for Ability Development and Senior Partner in T N Chaturvedi & Inclusion (formerly The Spastics & Co. a (Date of Birth : 29th May. resulted in the Science from IIT Bombay and M. Financial Services company.f. Shri a Fellow Chartered Accountant from Laws. Shri Amin also 44 yrs of consultancy experience in As Country Head of AIG for 13 years. 2008 Organisational Structure. He is Accounts. He is currently Chairman & MD. 28th Shri Sunil Mehta has over 33 years founder and CEO of vJungle. Girish Kumar Ahuja is a Director Shri Sunil Mehta software consulting (acquired by Emtec nominated by the Central Government (Date of Birth: 22nd August. engineer in the original Internet Doctorate in Financial Sector Reforms - Private Equity. Software Development. Shri Amin was the Dr. 1966) New Okhla Industrial Development His inspiring leadership and innovative Shri Amin holds a B. He is past Chairman of the American Act. He was Shri Mallya was also Chairman & also appointed by Governor of Uttar Managing Director of Bank of Baroda Shri Deepak I. 1957) Inc.2007.D. Asset Management. Taxation and Corporate Director of Bank of Maharashtra. 2016. Inc. Shri Mehta is on Delhi and has wide experience and (Date of Birth: 09th November. which was acquired by Accountant and academician having and Investments with Citibank and AIG. more particularly by of India and an alumni of the Wharton of Punjab National Bank for a period strengthening Technology. Ahuja is a Chartered Banking. United Way of India & Mumbai is a Practicing Chartered Accountant Enterprise lending. 1952) the Board of The Asia Society amongst expertise in the area of Finance & Shri Mallya was Chairman & Managing other not for profit organizations.. Chamber of Commerce (AMCHAM) period of three years. 2013. (Date of Birth: 20th April. 1946) Seattle and India based international Dr. New Shri M. for a period of three of proven leadership experience in web services software infrastructure years. Finance. 2012. He has expert India and overseeing ten businesses Networking teams and was a senior knowledge in Direct Taxes and having covering Life & Non-Life Insurance. Girish Kumar Ahuja form of many laurels and accolades. Chartered Accountants. 2016 Bank in India and Senior Credit Officer. Inc. Insurance.2004 to 11. 29th August. USA.e. Shri Chaturvedi Consumer Finance and Micro India. Capital Market Efficiency and Port Folio Real Estate.06.f. Shri Amin is on the Technology Investment.06. Muhammad State Bank of India | Annual Report 2015-16 119 . Government u/s 19(d) of the SBI senior positions in Risk Management. Dr. Shri Amin was the u/s 19(d) of the SBI Act. Mallya Society of North India). f. preparing the program and cooperation.Corporate Governance Dr. Geneva (UN). u/s 19(d) of the SBI Act. handling Dr. Pushpendra Rai is a Director Institute of Design. nominated by the Central Government Foreign Investment Promotion Council. Anjuly Chib three years. Urjit R. the Development Agenda process and Reserve Bank of India. Pushpendra Rai Project Director . 6th February. power generation and distribution Dr. Ministry of Finance. professional experience in national and Council of India. budget. w. strategies.UNDP/WIPO. determining implementation aspects of IP and asset creation. Anjuly Chib Duggal (Date of Birth : 02nd June. and evaluating staff performance for heading the Regional Office for Asia a diverse set of institutions like rural Pacific at Singapore. Ms. Delhi. 2013. promoting the economic of SBI Act w. Governing Council. 1957) Dr. (Date of Birth: 28th October. has about 37 years of WIPO and Secretary General. international institutions. Rai worked at the Dr. National (Date of Birth: 27th August. for 16 years. National Negotiator at WTO/ September. 3rd 28th January. and industrial development agencies. u/s 19(f) policy.e. Urjit R. Patel is a Director. He University and the University of has also worked as the National Lucknow and has lectured extensively in various parts of the world. Executive Director.f. Quality Duggal is Secretary.f. Rai has a Ph. Dr.e. 2015. Govt. Financial Services. 120 State Bank of India | Annual Report 2015-16 . Member Secretary. Ms.e. National Renewal u/s 19(e) of SBI Act w. from IIT. Patel is Deputy Governor. for a period of Fund. Anjuly Chib Duggal is a Director. nominated he was responsible for formulating assignments like extending technical by the Central Government. of India. 1963) Service for more than 21 years. Subsequently. petroleum companies postgraduate degrees from Harvard and intellectual property offices. departments. leading Dr. 2016. monitoring implementation.D. Urjit R. 1953 ) Member. Ms. Patel As a member of the Indian Administrative World Intellectual Property Organization. nominated by the Central Government. Shri Rajnish Kumar Managing Director 26.S. Committee Member : 01 Mumbai – 400 071 10. Committee Member :01 Napean Sea Road. Anjuly Chib Duggal Secretary..2015 Director : 01 M-1. Gupta Managing Director 02.D. 100A. 28. Shri Sanjiv Malhotra Chartered Accountant 26. K.2016 Director : 05 M/s.2015 Director : 03 D-10. Parel Mumbai . Dunedin.2013 Director : 03 Reserve Bank of Reserve Bank of India Central Office. Government of India. Kinellan Towers. Dr. M.Ahuja & Co.01. M. J.G. 29. Pushpendra Rai Development Specialist. Mehta Road. Mumbai – 400 006 4. Name of Director Occupation & Address Appointed to Number of Companies No.2014 Director : 01 M-2. Shaheed Bhagat Committee Member : 02 India Nominee Singh Road.06.02. Kinnellan Towers.400 012 Committee Member :05 8. Shri Deepak I. Patel Deputy Governor 06. Jeevan Deep Bldg. Churchgate. Committee Member : 06 Napean Sea Road. Kinnellan Towers 100A. Shri Sunil Mehta Chairman & MD 26.N.2014 Director : 19 D-11. Shri Tribhuwan Nath Chartered Accountant. Parliament Street.06.Rao Marg. Dr. Mumbai-400 001 State Bank of India | Annual Report 2015-16 121 . Shri M. (Financial Services) 03. Paschimi Marg.K. Maharishi Karve Marg.07. New Delhi – 110 001 14. Limited Chairman of Committee: 01 203-A Vivarea. Chiranjiv Tower. Amin Advisor 26. 406. Dr. Dr. Arundhati Chairman 07. Kailash Colony. Shri B.5. 6th Road Chembur. 100A. Mumbai – 400 006 5. Committee Member : 01 (Banking Division). Shri V. Ms. 43. Mumbai – 400 011 9. 28.G. Girish K. Sriram Managing Director 17. Nehru Place. New Delhi-110 057 13. Urjit R. Director : 01 Mumbai – 400 006 2. Smt. New Delhi-110 019 11. G.2014 Director : 12 C-601 Ashok Towers.06.2016 Director : 01 (former National & International civil servant) 50. Hospital.06.2016 S.08.11.10.2013 Director : 01 Chaturvedi M/s. Napean Sea Committee Member : 01 Road.T. Kinnellan Towers. Sane Guruji Marg. Ahuja Chartered Accountant. Chairman of Committee: 03 Opp. Committee Member :01 Mahalaxmi (East). Committee Member : 01 Napean Sea Road.09.05. New Delhi 110 048 12.2013 Chairman : 15 Bhattacharya No. Motabhoy Mansion130.01.2014 Director : 01 6. Mumbai – 400 006 6..Chaturvedi & Co.2014 Director : 02 104 Neel Kanth Tirth.0214 Director : 04 SPM Capital Advisers P. Mallya Retired Bank Executive 26. 100A. Shri P.2015 Director : 03 GOI Nominee Ministry of Finance.03.Mumbai – 400 006 3. Vasant Vihar. S. Board since including the Bank (Details given in Annexure II A) 1. Mumbai – 400 020 7. Committee Member : 02 E-6A.Annexure II Details of Memberships/Chairmanships held by the Directors on the Boards/ Board-level Committees of the Bank/Other Companies as on 31. Kannan Managing Director 17. LGF.07. Kannan.) Limited Director 17 SBI Cap Singapore Limited Director 18 SBI Funds Management Private Limited Director 19 SBI Foundation Director 122 State Bank of India | Annual Report 2015-16 .Member 8 SBI Cap Securities Limited Director 9 SBI Global Factors Limited Director Audit Committee of the Board . Name of the Concern/Society Member@ 1 State Bank of India Managing Director Audit Committee of the Board-Member 3.Corporate Governance Annexure IIA Total Number of Memberships/Chairmanships held by the Directors on the Boards / Board-level Committees of the Bank@/Other Companies as on 31.Member 11 SBI Cards & Payment Services Private Limited Director 12 SBI Pension Funds Private Limited Director Audit Committee of the Board . Smt.03. Sriram S. Shri B. Arundhati Bhattacharya S.K. Name of the Company/ Director Name(s) of the Committee(s) Chairman/ No. Name of the Company/Name of the Concern/Society Member/Director/ No. Chairman 1 State Bank of India Chairman 2 State Bank of Patiala Chairman 3 State Bank of Bikaner & Jaipur Chairman 4 State Bank of Hyderabad Chairman 5 State Bank of Mysore Chairman 6 State Bank of Travancore Chairman 7 SBI Global Factors Limited Chairman 8 SBI Pension Funds Private Limited Chairman 9 SBI Life Insurance Company Limited Chairman 10 SBI Funds Management Private Limited Chairman 11 SBI Cards & Payment Services Private Limited Chairman 12 SBI General Insurance Company Limited Chairman 13 SBI DFHI Limited Chairman 14 SBI Capital Markets Limited Chairman 15 SBI Foundation Chairman 16 Export-Import Bank of India Director 2.Member 10 SBI DFHI Limited Director Audit Committee of the Board . G. Limited Director 15 SBICAP Ventures Limited Director 16 SBICAP (U.2016 {@Only Memberships/Chairmanships of Audit Committee and Stakeholders Relationship Committee are reckoned as per Regulation 26(1) of SEBI(Listing Obligations & Disclosure Requirements) Regulations. 2015 } 1. Managing Director S. Name of the Company/ Director Name(s) of the Committee(s) Chairman/ No. Name of the Concern/Society Member@ 1 State Bank of India Managing Director Stakeholders Relationship Committee of the Board – Member 2 State Bank of Patiala Director - 3 State Bank of Mysore Director - 4 State Bank of Travancore Director - 5 State Bank of Bikaner & Jaipur Director - 6 State Bank of Hyderabad Director - 7 SBI Capital Markets Limited Director Audit Committee of the Board .Member 13 SBI General Insurance Company Limited Director Audit Committee – Member 14 SBI Life Insurance Co. Shri V. Member 2 Radian Advisors P. Name of the Concern/Society Member@ 1 State Bank of India Director Audit Committee of the Board – Member Stakeholders Relationship Committee – Chairman 2 India Infradebt Limited Director Audit Committee – Member 3 Nitesh Estates Limited Director Audit Committee . K. Name of the Concern/Society Member@ 1 State Bank of India Director Audit Committee of the Board . Limited Chairman & MD - 9.D.Chairman 12 Coffee Day Enterprises Limited Director - 8. Shri Sunil Mehta S.Member 10 Pudhuaaru Financial Services Limited Director Audit Committee – Member 11 Interglobe Aviation Limited Director Audit Committee .Member 2 IL&FS AMC Trustee Limited Director - 3 Asia Society India Centre (Section 25 Director - Company) 4 SPM Capital Advisers P. Name of the Company/ Director Name(s) of the Committee(s) Chairman/ No. Shri Rajnish Kumar S. Name of the Company/ Director Name(s) of the Committee(s) Chairman/ No. Shri P. Name of the Concern/Society Member@ 1 State Bank of India Managing Director Audit Committee of the Board – Member 6. Name of the Company/ Director Name(s) of the Committee(s) Chairman/ No. Limited Director - 3 Five Villages Enterprises LLP Partner - (Partnership firm) State Bank of India | Annual Report 2015-16 123 . Shri M.Chairman 9 Seven Islands Shipping Limited Director Audit Committee . Name of the Concern/Society Member@ 1 State Bank of India Managing Director Stakeholders Relationship Committee – Member 2 SBI Life Insurance Co. Amin S. Shri Sanjiv Malhotra S. Name of the Concern/Society Member@ 1 State Bank of India Director - 7. Shri Deepak I. Name of the Concern/Society Member@ 1 State Bank of India Director Audit Committee of the Board .Member 4 Emami Limited Director - 5 Nitesh Housing Developers (P) Limited Director - 6 Nitesh Urban Development (P) Limited Director - 7 Nitesh Indiranagar Retail (P) Limited Director - 8 IFMR Rural Channel & Services (P) Limited Director Audit Committee .Chairman Stakeholders Relationship Committee.4. Name of the Company/ Director Name(s) of the Committee(s) Chairman/ No. Name of the Company/ Director Name(s) of the Committee(s) Chairman/ No. Limited Director 3 SBI Foundation Director 5. Mallya S. Gupta S. Name of the Company/ Director Name(s) of the Committee(s) Chairman/ No. Corporate Governance 10. Dr. Dr. Dr. Name of the Concern/Society Member@ 1 State Bank of India Director - 11. Name of the Company/ Director Name(s) of the Committee(s) Chairman/ No. Ms. Urjit R.Limited Director - 12. Name of the Company/ Director Name(s) of the Committee(s) Chairman/ No. Patel S. Name of the Company/ Director Name(s) of the Committee(s) Chairman/ No. Name of the Concern/Society Member@ 1 State Bank of India Director Audit Committee of the Board-Member 2 Reserve Bank of India Director - 3 National Financial Holdings Company Director - Limited 14. Name of the Concern/Society Member@ 1 State Bank of India Director Audit Committee of the Board – Member Stakeholders Relationship Committee . Name of the Concern/Society Member@ 1 Reserve Bank of India Director - 2 State Bank of India Director Audit Committee of the Board -Member 3 National Housing Bank Director Audit Committee of the Board .Limited Director - 3 Devyani International Limited Director - 4 Varuna Beverages Limited Director - 5 Devyani Food Street P. Girish Kumar Ahuja S.Member 2 Flair Publications P.Anjuly Chib Duggal S.Member 124 State Bank of India | Annual Report 2015-16 . Name of the Concern/Society Member@ 1 State Bank of India Director - 13.Pushpendra Rai S. Name of the Company/ Director Name(s) of the Committee(s) Chairman/ No. Shri Tribhuwan Nath Chaturvedi S. Name of the Company/ Director Name(s) of the Committee(s) Chairman/ No. Pushpendra Rai 40000 20000 60000 State Bank of India | Annual Report 2015-16 125 . of Shares No.N. as on 31. Ahuja 40000 20000 60000 10 Dr.Mallya 5000 8 Shri Sunil Mehta 5000 9 Shri Deepak I. Name of Director Meetings of Meetings of Other Total No. Name No.Amin 5000 10 Shri T. Rajiv Kumar 10000 5000 15000 6 Shri Tribhuwan Nath Chatutvedi 100000 90000 190000 7 Shri Harichandra Bahadur Singh 60000 135000 195000 8 Shri S. Sriram 500 3 Shri V.Annexure – III Details of shareholding of Directors on the Bank’s Central Board as on 31/03/2016 S. Central Board Board Level Committees ( `) (`) ( `) 1 Shri Sanjiv Malhotra 130000 415000 545000 2 Shri M.K.Kannan 3855 4 Shri Rajnish Kumar Nil 5 Parveen Kumar Gupta 4900 6 Shri Sanjiv Malhotra 8800 7 Shri M. Urjit R.G.D. Amin 150000 630000 780000 5 Dr.03. Mallya 150000 565000 715000 3 Shri Sunil Mehta 210000 735000 945000 4 Shri Deepak I. Patel Nil Annexure IV Details of Sitting Fees paid to Directors for attending Meetings of the Central Board and Board-Level Committees during 2015-16 S. Mukherjee 70000 25000 95000 9 Dr. A Bhattacharya 2000 2 Shri B. Girish K.2016 1 Smt.D.Chaturvedi 2000 11 Girish K Ahuja 2000 12 Pushpendra Rai Nil 13 Ms Anjuly Chib Duggal Nil 14 Dr. 1955. 4. The Board . The half. ARUNDHATI BHATTACHARYA CHAIRMAN Date: 18th April.The Internal Auditor (Deputy Managing Director Inspection & Management Audit) reports directly to the Audit Committee of the Board. Separate post of chairperson and chief executive officer .There is no audit modification in the financial statements of the Bank for the financial year ended on March 31. 2015) 1.CORPORATE GOVERNANCE Annexure V STATE BANK OF INDIA DECLARATION AFFIRMATION OF COMPLIANCE WITH THE BANK’S CODE OF CONDUCT (2015-16) I declare that all Board Members and Senior Management have affirmed compliance with the Bank’s Code of Conduct for the Financial Year 2015-16. Modified Opinion(s) in audit report . 2016. 2016 DISCRETIONARY REQUIREMENTS (Regulation 27 of SEBI Listing Regulations. The Bank. 3.Bank publishes its half yearly financial results in the newspapers having nationwide circulation. 126 State Bank of India | Annual Report 2015-16 . however. Reporting of Internal Auditor . Shareholders Rights . does not send the half-yearly results to each household of shareholders. this is not applicable. 2.The appointment of the Chairman and the four Managing Directors is as per the provisions of the SBI Act. 5.As the Bank has an Executive Chairman.yearly financial result and significant events are uploaded on the Bank’s website. Chartered Accountants (Firm’s Registration No. State Bank Bhavan.co. adopted by the Bank for ensuring the compliance of the conditions of Corporate Governance. 2015 read with SEBI circular No. We further state that such compliance is neither an assurance as to the future viability of the Bank nor the efficiency or effectiveness with which the Management has conducted the affairs of the Bank. having its Corporate Centre at State Bank
[email protected] under separate link http://www.: 004532S).in and postal address: General Manager. For and on behalf of Varma & Varma Chartered Accountants Firm Registration No: 004532S Cherian K. 2015 to March 31. as stipulated in Clause 49 of the Listing Agreement (‘Listing Agreement’) of the Bank with the Stock Exchanges for the period April 1. 2015 mandates the inclusion of Business Responsibility Report (BRR) as part of the Annual Report for Top 500 listed entities based on market capitalization (calculated as on March 31 of every financial year) at BSE and NSE. Mumbai . Mumbai. Regulation 34(2)(f) of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations. The Bank’s Sustainability Report which contains the Business Responsibility Report for the financial year ended 31st March. State Bank of India We. Our examination was carried out in accordance with the Guidance Note on Corporate Governance. 2016 has been hosted on the Bank’s website www. It is neither an audit nor an expression of opinion on the financial statement of the Bank. as Statutory Auditors of STATE BANK OF INDIA ("the Bank"). as applicable. The compliance of conditions of Corporate Governance is the responsibility of the Management. Madame Cama Road. Any shareholder interested in obtaining a physical copy of the same may write to the Bank (email Id: gm.in/ www.sbi. State Bank of India.16043 BUSINESS RESPONSIBILITY REPORT About the Business Responsibility Report: Business Responsibility Report of the Bank. Corporate Centre. Maharashtra 400 021.statebankofindia.in/portal/web/corporate-governance/sr2016. Shares & Bonds Department. we certify that the Bank has. Baby Place: Kolkata Partner May 27.AUDITORS’ CERTIFICATE ON CORPORATE GOVERNANCE To The Members. 2016. CIR/CFD/CMD/10/2015 dated 4th November.400 021) State Bank of India | Annual Report 2015-16 127 .sbi. 2015 (‘Listing Regulations’) as referred to in Regulation 15(2) of the Listing Regulations for the period December 1. 2015 to November 30. and was limited to procedures and implementation thereof. issued by the Institute of Chartered Accountants of India. in all material aspects complied with the conditions of Corporate Governance as stipulated in the above mentioned Listing Agreement/Listing Regulations. 2016. Madame Cama Road.co. 2016 Membership No. 2015 and as per the relevant provisions of Securities and Exchange Board of India (Listing Obligations & Disclosure Requirements) Regulations.co. In our opinion and to the best of our information and according to the explanations given to us. is published on an annual basis since FY2012-13 (Present one is 4th). Varma & Varma. for the year ended on March 31. have examined the compliance of conditions of Corporate Governance by the Bank. D.28 2048079.28 TOTAL 2259063.24. Sriram Managing Director Managing Director Managing Director (Compliance & Risk) (Associates & Subsidiaries) (Corporate Banking Group) Directors: Shri Sanjiv Malhotra Shri M.34 Deposits 3 1730722.25.71. Pushpendra Rai Smt. 31. 92211.83 92795.42 Other Assets 11 140408.2015 (Current Year) (Previous Year) ` ` CAPITAL AND LIABILITIES Capital 1 776.46 137698.75 1300026.78 Bills for Collection .61 205150.93.K.65 481758.G.65.57 TOTAL 2259063. 2016 (000s omitted) Schedule As on As on No.98 Contingent Liabilities 12 971956.64.29.32.57.27.74.STATE BANK OF INDIA Balance Sheet as on 31st March.03. Mallya Shri Deepak I.84 Significant Accounting Policies 17 Notes to Accounts 18 Schedules referred to above form an integral part of the Balance Sheet Signed by: Shri P.40.86 Investments 8 477097. Girish Kumar Ahuja Dr.72 9329.50 Borrowings 4 224190.33.27.43. Arundhati Bhattacharya Shri Sunil Mehta Chairman 128 State Bank of India | Annual Report 2015-16 .84.58.31 Reserves & Surplus 2 143498. Gupta Shri V.61 1576793.26 Other Liabilities and Provisions 5 159875. Kannan Shri B.29 Fixed Assets 10 10389.03.98 ASSETS Cash and Balances with Reserve Bank of India 6 129629. Amin Shri Tribhuwan Nath Chaturvedi Dr.51 102209.00.35 Balances with Banks and money at call and short notice 7 37838.27.53 115883.78 Advances 9 1463700.03.28 2048079.16.57.41.12 38871.79.39.2016 31.58 1000627.15.79.03.03.77 746.83 127691.24. In terms of our report of even date For M/s Varma & Varma For M/s Mehra Goel & Co. For M/s S R R K Sharma Associates Chartered Accountants Chartered Accountants Chartered Accountants Cherian K Baby R K Mehra S R R K Sharma Partner, M.No.016043 Partner, M.No.006102 Partner, M.No.18088 Firm Regn.No.004532 S Firm Regn.No.000517 N Firm Regn.No.003790 S For M/s V. Sankar Aiyar & Co. For M/s S. N. Mukherji & Co. For M/s B. Chhawchharia & Co. Chartered Accountants Chartered Accountants Chartered Accountants Ajay Gupta Sudip Mukherji Kshitiz Chhawchharia Partner, M.No.090104 Partner, M.No.013321 Partner, M.No.061087 Firm Regn.No.109208 W Firm Regn.No.301079 E Firm Regn. No. 305123 E For M/s Manubhai & Shah LLP For M/s M. Bhaskara Rao & Co. For M/s GSA & Associates Chartered Accountants Chartered Accountants Chartered Accountants Hitesh M Pomal M V Ramana Murthy Sunil Aggarwal Partner, M.No.106137 Partner, M.No.206439 Partner, M.No.083899 Firm Regn.No.106041W/W100136 Firm Regn.No.000459 S Firm Regn.No.000257 N For M/s Chatterjee & Co. For M/s Bansal & Co. For M/s Amit Ray & Co. Chartered Accountants Chartered Accountants Chartered Accountants S K Chatterjee D S Rawat Basudeb Banerjee Partner, M.No.003124 Partner, M.No.083030 Partner, M.No.070468 Firm Regn.No.302114 E Firm Regn.No.001113 N Firm Regn.No.000483 C For M/s S L Chhajed & Co. For M/s Mittal Gupta & Co. Chartered Accountants Chartered Accountants S N Sharma Akshay Kumar Gupta Partner, M.No.071224 Partner, M.No.070744 Firm Regn.No.000709 C Firm Regn.No.001874 C Place : Kolkata Date : 27th May, 2016. State Bank of India | Annual Report 2015-16 129 SChedules SCHEDULE 1 - CAPITAL (000s omitted) As on 31.03.2016 As on 31.03.2015 (Current Year) (Previous Year) ` ` Authorised Capital : 5000,00,00,000 shares of ` 1 each 5000,00,00 5000,00,00 (Previous Year 5000,00,00,000 shares of ` 1 each) Issued Capital : 776,35,98,072 Equity Shares of ` 1 each 776,35,98 746,65,61 (Previous Year 746,65,61,670 Equity Shares of ` 1 each) Subscribed and Paid-up Capital : 776,27,77,042 Equity Shares of ` 1 each 776,27,77 746,57,31 (Previous Year 746,57,30,920 Equity Shares of ` 1 each) [The above includes 14,45,93,240 Equity Shares of ` 1 each (Previous Year 16,04,31,560 Equity Shares of ` 1 each) represented by 1,44,59,324 (Previous Year 1,60,43,156) Global Depository Receipts] TOTAL 776,27,77 746,57,31 SCHEDULE 2 - RESERVES & SURPLUS (000s omitted) As on 31.03.2016 As on 31.03.2015 (Current Year) (Previous Year) ` ` I. Statutory Reserves Opening Balance 47839,40,98 43810,33,00 Additions during the year 2985,19,61 4029,07,98 Deductions during the year - - 50824,60,59 47839,40,98 II. Capital Reserves Opening Balance 1849,51,49 1744,01,05 Additions during the year 345,27,46 105,50,44 Deductions during the year - - 2194,78,95 1849,51,49 III. Share Premium Opening Balance 41444,68,60 41444,68,60 Additions during the year 8333,44,99 - Deductions during the year 8,65,88 - 49769,47,71 41444,68,60 IV. Foreign Currency Translation Reserve Opening Balance 6172,34,71 6040,01,00 Additions during the year 757,82,36 158,29,42 Deductions during the year 873,92,35 25,95,71 6056,24,72 6172,34,71 130 State Bank of India | Annual Report 2015-16 (000s omitted) As on 31.03.2016 As on 31.03.2015 (Current Year) (Previous Year) ` ` V. Revenue and Other Reserves* Opening Balance 30385,37,08 24496,31,52 Additions during the year 4267,35,10 5889,05,56 Deductions during the year - - 34652,72,18 30385,37,08 VI. Balance of Profit and Loss Account 31,68 32,48 * Note: Revenue and Other Reserves include (i) ` 5,00,00 thousand (Previous Year ` 5,00,00 thousand) of Integration and Development Fund (maintained under Section 36 of the State Bank of India Act, 1955) (ii) Special Reserve under Section 36(1)(viii) of the Income Tax Act, 1961 ` 8499,18,16 thousand (Previous Year ` 6719,06,15 thousand) TOTAL 143498,15,83 127691,65,34 SCHEDULE 3 - DEPOSITS (000s omitted) As on 31.03.2016 As on 31.03.2015 (Current Year) (Previous Year) ` ` A. I. Demand Deposits (i) From Banks 5735,58,63 5941,51,45 (ii) From Others 134071,44,66 118630,78,84 II. Savings Bank Deposits 597746,06,02 527332,81,84 III. Term Deposits (i) From Banks 6818,59,65 9179,86,77 (ii) From Others 986350,74,65 915708,25,60 TOTAL 1730722,43,61 1576793,24,50 B I. Deposits of Branches in India 1636424,58,65 1487236,32,78 II. Deposits of Branches outside India 94297,84,96 89556,91,72 TOTAL 1730722,43,61 1576793,24,50 State Bank of India | Annual Report 2015-16 131 SChedules SCHEDULE 4 - BORROWINGS (000s omitted) As on 31.03.2016 As on 31.03.2015 (Current Year) (Previous Year) ` ` I. Borrowings in India (i) Reserve Bank of India - 2595,00,00 (ii) Other Banks - 674,52,05 (iii) Other Institutions and Agencies 1902,52,33 3490,55,76 (iv) Capital Instruments : a. Innovative Perpetual Debt Instruments (IPDI) 2165,00,00 2165,00,00 b. Subordinated Debt 42374,23,80 36471,39,60 44539,23,80 38636,39,60 TOTAL 46441,76,13 45396,47,41 II. Borrowings outside India (i) Borrowings and Refinance outside 173607,88,73 155847,56,85 India (ii) Capital Instruments : Innovative Perpetual Debt 4140,93,75 3906,25,00 Instruments (IPDI) TOTAL 177748,82,48 159753,81,85 GRAND TOTAL 224190,58,61 205150,29,26 Secured Borrowings included in I & II above 8046,77,79 4581,96,92 SCHEDULE 5 - OTHER LIABILITIES AND PROVISIONS (000s omitted) As on 31.03.2016 As on 31.03.2015 (Current Year) (Previous Year) ` ` I. Bills payable 18438,45,65 20184,69,67 II. Inter-office adjustments (Net) 36843,46,74 39061,18,75 III. Interest accrued 24934,79,20 20560,45,58 IV. Deferred Tax Liabilities (Net) 2684,95,65 2353,11,87 V. Others (including provisions)* 76973,90,22 55538,57,70 TOTAL 159875,57,46 137698,03,57 * Includes prudential provision for Standard Assets ` 11188,59,82 thousand (Previous Year ` 9018,36,10 thousand) 132 State Bank of India | Annual Report 2015-16 SCHEDULE 6 - CASH AND BALANCES WITH RESERVE BANK OF INDIA (000s omitted) As on 31.03.2016 As on 31.03.2015 (Current Year) (Previous Year) ` ` I. Cash in hand (including foreign currency notes and gold) 15080,91,89 14943,22,17 II. Balance with Reserve Bank of India (i) In Current Account 114548,40,64 100940,62,18 (ii) In Other Accounts - - TOTAL 129629,32,53 115883,84,35 SCHEDULE 7 - BALANCES WITH BANKS AND MONEY AT CALL & SHORT NOTICE (000s omitted) As on 31.03.2016 As on 31.03.2015 (Current Year) (Previous Year) ` ` I. In India (i) Balances with banks (a) In Current Accounts 151,94,16 193,75,88 (b) In Other Deposit Accounts - - (ii) Money at call and short notice (a) With banks 2972,00,00 2240,00,00 (b) With other institutions - - TOTAL 3123,94,16 2433,75,88 II. Outside India (i) In Current Accounts 24084,90,46 21059,05,65 (ii) In Other Deposit Accounts 1144,46,21 1946,13,70 (iii) Money at call and short notice 9485,02,29 13432,98,63 TOTAL 34714,38,96 36438,17,98 GRAND TOTAL (I and II) 37838,33,12 38871,93,86 State Bank of India | Annual Report 2015-16 133 85 GRAND TOTAL (I and II) 477097.34 30357.72.87.32. - (iii) Shares 4327.98.INVESTMENTS (000s omitted) As on 31.03.96 246.74.30 30603.00.78 134 State Bank of India | Annual Report 2015-16 .71.65 481758.27.94.26 7596.72.) 23022.22 4336.50.56.31 451401.74.2015 (Current Year) (Previous Year) ` ` I.49 (vi) Others (Units of Mutual Funds.40 (ii) Less: Aggregate of Provisions / Depreciation 294.56.31 233.60.76.31 451401.17 TOTAL 39436.72.69 (iii) Other Investments (Shares. Investments outside India in : (i) Government Securities (including local authorities) 9969.93 II.36 (iii) Net Investments (vide II above) TOTAL 39436.05.90.82 31286.01. Investments in India : (i) Gross Value of Investments 437955.32. Commercial Papers etc.65 377654.71.78.68.67.56 (iv) Debentures and Bonds 41126.48.93 IV.21 (ii) Less: Aggregate of Provisions / Depreciation 59. Investments in India in : (i) Government Securities 360398.47 (iii) Net Investments (vide I above) TOTAL 437660.99 (ii) Subsidiaries and/ or Joint Ventures abroad 2591.94 2185.2016 As on 31.51 (v) Subsidiaries and/ or Joint Ventures (including Associates) 8784.76.18 5758. Debentures etc.85 GRAND TOTAL (III and IV) 477097.34 30357.22 22413.04.36 30527.25.03 (ii) Other approved securities .SChedules SCHEDULE 8 .78 III.01.49.65 481758.23.15.03.65.) 26875.27. Investments outside India : (i) Gross Value of Investments 39496.62 451634.82.34 TOTAL 437660. 2015 (Current Year) (Previous Year) ` ` A.66.24 1067251.95 81176.65 III.ADVANCES (000s omitted) As on 31.03. Unsecured 315779.93 (b) Syndicated loans 88579.2016 As on 31.05.60.37.49.33 95605.41. Advances in India (i) Priority Sector 328551.29 B.38.33.75 1300026.99.49 TOTAL 1463700.44.62.41.14 II.39.55 259109.35.84.30 73482.26 (ii) Public Sector 144401.70.93.23 665844.18 III.27.05.61.51 232775.29 C. Advances outside India (i) Due from banks 71628.62 II.37 II.89 28459.79 (iv) Others 725604.56 52640.50 TOTAL 1463700.56.91.74.29 State Bank of India | Annual Report 2015-16 135 .94.16 678592.64 988275.54 TOTAL 1200031. overdrafts and loans repayable on demand 589442.74.01.75 1300026.05.50. Covered by Bank/ Government Guarantees 61714.93 261.37 (ii) Due from others (a) Bills purchased and discounted 15179. Term loans 779897.75 1300026.86.37 49656.16 99444.58 (c) Others 88281.39.19 538576.03. I.21.78 (iii) Banks 1473.41. Bills purchased and discounted 94360.81.93.04 TOTAL 263668. Secured by tangible assets (includes advances against Book Debts) 1086206.SCHEDULE 9 . I. Cash credits.38.92 GRAND TOTAL (C-I & C-II) 1463700. I.40.99 288952.39.36. 75 Depreciation to date 12875.72 9329. 208.92.22 6069.70.18.56 TOTAL (I.27 Depreciation to date including provision . Leased Assets At cost as on 31st March of the preceding 208.SChedules SCHEDULE 10 .45 15573.06.23 Depreciation to date 491. 5.37 Deductions during the year .35.97 year Additions during the year 215.55 III. - Deductions during the year 208.80 3143. II.16.36.2016 As on 31.11 3112.73. - IV.66.31 II.32.70.03.42 136 State Bank of India | Annual Report 2015-16 .22.82 11472. Other Fixed Assets (including furniture and fixtures) At cost as on 31st March of the preceding 17542.47 year Additions during the year .20 233.49.65 2758.70.45.78 2972.72 287.85 Deductions during the year 271.FIXED ASSETS (000s omitted) As on 31.2015 (Current Year) (Previous Year) ` ` I.39.28. III and IV) 10389.03. Premises At cost as on 31st March of the preceding 3419. Assets under Construction (Including Premises) 570.20 24.27.90 6675.29.89 312.37.61.62.44.11.20 .06 789.74.53.58.08.35 year Additions during the year 2280.22 447. 16 463.28. endorsements and other obligations 106928.91.80 15020.03.03.45 TOTAL 140408.51 102209.03.64 (b) Outside India 82799.52.00.67.81 II. Interest accrued 16227.19.66.87.97.08.51.95. Acceptances.47.03 14132.37 III.25.93 thousand (Previous Year ` 33374.28 TOTAL 971956. Claims against the bank not acknowledged as debts 12347.86.91.69 thousand) State Bank of India | Annual Report 2015-16 137 .46.90 thousand) SCHEDULE 12 . Other items for which the bank is contingently liable* 127559.54 VI.84 77456.26 97765.57 V. Liability on account of outstanding forward exchange contracts 506354.2016 As on 31.52.90.62.03.2015 (Current Year) (Previous Year) ` ` I.2016 As on 31.71.87. Stationery and stamps 102.98 V. Liability for partly paid investments/ Venture Funds 154.09 IV.25.97 568894.29 131986.40. Others * 110903.31 104.88 365.09.2015 (Current Year) (Previous Year) ` ` I.50 thousand (Previous Year ` 130178.SCHEDULE 11 . Non-banking assets acquired in satisfaction of claims 3.91 VII.00 4.55.51.03. Deferred Tax Assets (Net) 472.78 *Includes Derivatives ` 125856.58 1000627.14.OTHER ASSETS (000s omitted) As on 31.16 IV.16. Guarantees given on behalf of constituents (a) In India 135811.97 123711.25. Tax paid in advance / tax deducted at source 12698.05. - II.CONTINGENT LIABILITIES (000s omitted) As on 31.68 9257.48.98.28 *Includes Deposits placed with NABARD/ SIDBI/ NHB amounting to ` 52401.23 VI.03 III.90 63673. Inter-office adjustments (Net) . 01 22575. Pushpendra Rai Smt.97.26 TOTAL 191843.36.36 Operating expenses 16 41782. Gupta Shri V. Arundhati Bhattacharya Shri Sunil Mehta Chairman 138 State Bank of India | Annual Report 2015-16 .57.03.55 Diluted Earnings per Share ` 12.98 ` 17.39 26435.48 III. Kannan Shri B.STATE BANK OF INDIA Profit and Loss Account for the year ended 31st March.00 429.48 TOTAL 9950.05.49.03.28 Tax on Dividend for the Current year 334.21 97381.68 Basic Earnings per Share ` 12.50.65.15.14 Provisions and contingencies 33307.G.44 Transfer to Revenue and other Reserves 4267.30.20 Profit brought forward 32.65 38053.68 II. APPROPRIATIONS Transfer to Statutory Reserve 2985. Mallya Shri Deepak I.68 IV. Sriram Managing Director Managing Director Managing Director (Compliance & Risk) (Associates & Subsidiaries) (Corporate Banking Group) Directors: Shri Sanjiv Malhotra Shri M.07.75.10 5889.32.66.07.42 Other Income 14 28158.97.85 13101.61 152397. 2016 (000s omitted) Schedule Year ended Year ended No.82.56 Dividend for the previous year paid during the year (including Tax on Dividend) 80 - Dividend for the Current year 2018.46 105.2016 31.35.89.17. Amin Shri Tribhuwan Nath Chaturvedi Dr.25 161871.19.48 32.98 TOTAL 181893.96.87.89.36.27. INCOME Interest earned 13 163685.K.20 2648.55 Significant Accounting Policies 17 Notes to Accounts 18 Schedules referred to above form an integral part of the Profit & Loss Account Signed by: Shri P.69.2015 (Current Year) (Previous Year) ` ` I.98 ` 17.94 Balance carried over to Balance Sheet 31.39.01.62 174972. EXPENDITURE Interest expended 15 106803.37 13101.68 32.51. PROFIT Net Profit for the year 9950.D.98 Transfer to Capital Reserve 345. Girish Kumar Ahuja Dr. 31.61 4029.89.48 TOTAL 9950.85 13101. No.No.070744 Firm Regn.No. Sankar Aiyar & Co.No.No. Chhawchharia & Co.No.No.000517 N Firm Regn. M. No. For M/s Mittal Gupta & Co.No.No. For M/s Amit Ray & Co.No.003124 Partner. M.No.004532 S Firm Regn. M.No. For M/s S R R K Sharma Associates Chartered Accountants Chartered Accountants Chartered Accountants Cherian K Baby R K Mehra S R R K Sharma Partner.090104 Partner.No. N.003790 S For M/s V. 2016. State Bank of India | Annual Report 2015-16 139 . Mukherji & Co. For M/s S. M.006102 Partner. M.070468 Firm Regn. Chartered Accountants Chartered Accountants Chartered Accountants S K Chatterjee D S Rawat Basudeb Banerjee Partner. For M/s Bansal & Co.109208 W Firm Regn.001113 N Firm Regn.No.016043 Partner.No.No.000709 C Firm Regn. For M/s GSA & Associates Chartered Accountants Chartered Accountants Chartered Accountants Hitesh M Pomal M V Ramana Murthy Sunil Aggarwal Partner.083030 Partner. M. For M/s B.106137 Partner.No. M.No.206439 Partner.061087 Firm Regn.001874 C Place : Kolkata Date : 27th May.No.302114 E Firm Regn.106041W/W100136 Firm Regn.No.000459 S Firm Regn.013321 Partner.071224 Partner.No.No.083899 Firm Regn. Bhaskara Rao & Co. M. M. Chartered Accountants Chartered Accountants Chartered Accountants Ajay Gupta Sudip Mukherji Kshitiz Chhawchharia Partner. M.No.18088 Firm Regn. Chartered Accountants Chartered Accountants S N Sharma Akshay Kumar Gupta Partner.In terms of our report of even date For M/s Varma & Varma For M/s Mehra Goel & Co. M.000257 N For M/s Chatterjee & Co. M.000483 C For M/s S L Chhajed & Co.No.No. M. M.No.301079 E Firm Regn.No.305123 E For M/s Manubhai & Shah LLP For M/s M. 01. Profit / (Loss) on sale of investments (Net) 5168.04.34.01 22575.99 III.22 112343.06.64.SChedules SCHEDULE 13 . Income earned by way of dividends.26 * Miscellaneous Income includes Recoveries made in Write-off Accounts ` 2858.20 II.97.78.69.09 thousand) 140 State Bank of India | Annual Report 2015-16 .98.93 35353. Income from financial lease .43) - IV.62 4194.INTEREST EARNED (000s omitted) Year ended Year ended 31.61 152397.2015 (Current Year) (Previous Year) ` ` I.2016 31.63 TOTAL 163685.57 3214.74. etc.99) V.24.2016 31.35 IV.24 III. from subsidiaries/ companies and/ or joint ventures abroad/ in India 475. buildings and other assets (Net) (16.39. Others 5094. Profit/ (Loss) on revaluation of investments (Net) (151.OTHER INCOME (000s omitted) Year ended Year ended 31.2015 (Current Year) (Previous Year) ` ` I.71.00 13172.03.51 thousand (Previous year ` 2358.82.84 505. Commission. Interest on balances with Reserve Bank of India and other inter-bank funds 621.13 II.91.43 VII.03.12.03.98.95.36.57 677.59 3618.75 VIII Miscellaneous Income * 6153. Profit / (Loss) on sale of land. Income on investments 42303.37) (42.67.08 1935.61. Interest / discount on advances / bills 115666.83.89. Profit / (Loss) on exchange transactions (Net) 2112.03.79.39 TOTAL 28158..03.07. 5. exchange and brokerage 14415.30.56 VI.42 SCHEDULE 14 . 99.97.03.93 VIII.98.2015 (Current Year) (Previous Year) ` ` I.82. Printing and stationery 376. Postages.30 656.2015 (Current Year) (Previous Year) ` ` I.87 X.82.84 89148. Advertisement and publicity 307.62.30.27 III. Interest on Reserve Bank of India / Inter-bank borrowings 4154.07.35.49.87.67 1594.14 State Bank of India | Annual Report 2015-16 141 .15.61 V.37 60.46 IV.21 178.46 TOTAL 41782. 609. - VI.06. etc.03.29.2016 31.06 284. Insurance 1718.50.28 XI.35.OPERATING EXPENSES (000s omitted) Year ended Year ended 31. Auditors' fees and expenses (including branch auditors' fees and expenses ) 197.32 (b) Depreciation on Leased Assets .07 TOTAL 106803.08. Payments to and provisions for employees 25113.89 XII.02 II.59 3972.04.36 SCHEDULE 16 .03.20.48 III.50.73. Telephones.94. Law charges 179. Other expenditure 7271.63.03.78 4261.65 38053.21 97381.38 373.96 6167.82.INTEREST EXPENDED (000s omitted) Year ended Year ended 31. Interest on deposits 98864.81.76 II. Repairs and maintenance 598.33.49.08 191.2016 31. taxes and lighting 3709.28 3406.45. Others 3784.36.03. Rent.46 23537.04.37 IX.43 545. Directors' fees.45 1116. (a) Depreciation on Bank's property (other than Leased Assets) 1700.71 VII. allowances and expenses 63.64. Telegrams.SCHEDULE 15 . reasonable. Leases effective from April 1. Government Business and ATM interchange fees. On Interest bearing securities. Commission etc. comprising of advances. management to make estimates and assumptions considered in the reported amount of assets and liabilities (including 1. Significant Accounting Policies: b. Banking Regulation 19 . 142 State Bank of India | Annual Report 2015-16 . over the period of the guarantee. on the accrual basis of accounting investment outstanding in the lease. it is recognised preparation of the financial statements are prudent and only at the time of sale/ redemption. accounted on realisation. of foreign offices (hereafter collectively referred to 1.4 Income from financial leases is calculated by applying The Bank’s financial statements are prepared under the the interest rate implicit in the lease to the net historical cost convention. On zero-coupon securities. paid/ incurred in 1. is recognised as follows : period.2 Interest income is recognised in the Profit and Loss Account as it accrues except: (i) income from Non. income and expenditure are recognised as per the local laws of the country in which the 1. 2001 are Principles (GAAP) in India. Management believes that the estimates used in a.SIGNIFICANT ACCOUNTING POLICIES: taxes and amount required to be transferred to statutory reserve). except otherwise stated. Revenue recognition: constant yield basis.7 All other commission and fee incomes are recognised respective foreign office is located. an amount over the tenure of the related Bonds / Deposits and the equal to the profit on sale of investments in the ‘Held expenses incurred in connection with the issue are to Maturity’ category is appropriated (net of applicable charged upfront. on the net investment outstanding in respect of finance leases. Use of Estimates: balance of net investment in lease and finance income The preparation of financial statements requires the is reported as interest income. C. which is spread 1. The lease rentals are Act 1949. (ii) overdue interest on Home Loan Scheme (December 2008 to June 2009) is investments and bills discounted. A. and the practices based on a pattern reflecting a constant periodic return prevalent in the banking industry in India. unless otherwise stated and conform in all material aspects to Generally Accepted Accounting lease period. 1. as per the prudential norms prescribed fees on restructured accounts. to ‘Capital Reserve Account’. and (iii) Upfront realisation. on their realisation except for: (i) Guarantee commission on deferred payment guarantees. Basis of Preparation: 1. 1. foreign offices. which are amortised over average loan period of 15 years.3 Profit or Loss on sale of investments is recognised connection with issue of Bonds / Deposits are amortized in the Profit and Loss Account. As regards Bank’s right to receive the dividend is established.8 One time Insurance Premium paid under Special as Regulatory Authorities). over the primary on going concern basis. However.5 Income (other than interest) on investments in “Held to contingent liabilities) as on the date of the financial statements Maturity (HTM)” category acquired at a discount to the and the reported income and expenses during the reporting face value. which is recognised upon which are recognised as they accrue.SCHEDULE 17. which comprise applicable accounted as advances at an amount equal to the net statutory provisions. The principal amount is utilized for reduction in B. which is apportioned by the RBI/ respective country regulators in the case over the restructured period. leases and investments. regulatory norms/guidelines prescribed investment in the lease as per Accounting Standard by the Reserve Bank of India (RBI).“Leases” issued by ICAI.9 Brokerage. (ii) Commission on Performing Assets (NPAs). (iii) Income on Rupee Derivatives designated as “Trading”.6 Dividend is accounted on an accrual basis where the basis. Future results could differ from these estimates.1 Income and expenditure are accounted on accrual 1. Accounting Standards issued by the Institute of apportioned between principal and finance income Chartered Accountants of India (ICAI). it is accounted for over the balance tenor of the security on a 1. within 90 days from the date of purchase are iii. cost. The depreciation. maturity are classified as “Held to Maturity After transfer. paid in shortfall is debited to the Profit and Loss Account connection with acquisition of investments over a period of 8 quarters equally beginning the are expensed upfront and excluded from quarter in which the sale was effected. if any.2 Basis of classification: transfer is fully provided for. 2. Investments other than AFS and HFT category and on FIFO basis Government Securities are recorded on “Trade Date”. ii. v. to HTM category is carried out at the lower of Held to Maturity (HTM). date of transfer. A provision is made for diminution. Investments: (d) Cost is determined on the weighted The transactions in Government Securities are average cost method for investments under recorded on “Settlement Date”. other than temporary. abroad) are valued at historical cost. Investments that are held principally for resale provided. iii. adjusted against income under the head “interest on investments”. When the bank sells its financial assets to investment: Securitisation Company (SC)/Reconstruction Company (RC). joint ventures and joint ventures and associates (both in India and associates are classified as HTM. in which case the premium is amortised AFS at the time of its purchase and subsequent over the period of remaining maturity on constant shifting amongst categories is done in conformity yield basis. the same is removed from the (a) Brokerage/commission received on books. subscriptions is reduced from the cost. expense/income and is excluded from cost/ sale consideration. Such amortisation of premium is with regulatory guidelines. which are not classified in the above iv.1 Classification ii. transfer of securities from HTM category to AFS category i. Investments in subsidiaries. viz. revalued and resultant depreciation.. at carrying cost. on such 2. However. 2. the Transaction Tax (STT) etc. is ii. Investments that the Bank intends to hold till is carried out on acquisition price/book value.e. Securities (NBV) (i. Transfer of securities from HFT/AFS category Investments are classified into three categories. If the sale is at a price below the net book value (b) Brokerage. are classified as “Available for under Held to Maturity category are carried at Sale (AFS)”. b) Investments in subsidiaries. iii. for State Bank of India | Annual Report 2015-16 143 . An investment is classified as HTM. HFT or value. the (c) Broken period interest paid / received on excess provision is written back in the year the debt instruments is treated as interest amounts are received. Treasury Bills and Commercial Papers are valued classified as “Held for Trading (HFT)”.10 The sale of NPA is accounted as per guidelines 2. (first in first out) for investments under HTM category. Held to Maturity category: a) Investments two categories. as permitted by the RBI. If the sale is for a value higher than the NBV. these securities are immediately (HTM)”. if any.. acquisition cost unless it is more than the face iv. Commission. In determining the acquisition cost of an i.1.3 Valuation: prescribed by RBI :- i. book value less provisions held). Available for Sale (AFS) and acquisition cost/book value/market value on the Held for Trading (HFT) as per RBI Guidelines. Investments. book value).e. provisions for to Securitisation Company (SC)/ Asset NPIs are made as per the local regulations Reconstruction Company (ARC) against issue or as per the norms of RBI. and (ii) Redemption value of (other than transactions under the Liquidity SR. On provision for depreciation. such movement of securities is reflected using the Repo/Reverse Repo Accounts vii. proceeds) is due and remains unpaid for more than 90 days. is ignored. Interest expended/earned company is valued at ` 1 per company on thereon is accounted for as expenditure/ revenue. in the event Account and reversed on maturity of the the investment in the shares of any transaction. However. obtained from the SC/ ARC. each investment individually. and (vi) others) dividend is not paid. Accounting for Repo/ Reverse Repo transactions the financial asset. in cases where Repo/ Reverse Repo are accounted as the SRs issued by the SC/ ARC are limited to the Collateralized lending and borrowing actual realisation of the financial assets assigned transactions. is outright sale/ purchase transactions and reckoned for valuation of such investments. The above entries non-performing. SRs issued by an SC/ ARC are valued in Adjustment Facility (LAF) with the RBI): accordance with the guidelines applicable to non- (a) The securities sold and purchased under SLR instruments. group for each category (viz. the book value of which are deemed to be in the nature of the individual security remains unchanged after advance. (b) Securities purchased/sold under LAF with RBI are debited/credited to Investment (b) In the case of equity shares. (e) The investments in debentures/bonds. v. book value less provisions held) of viii. investment categories are individually revalued at the market in any of the securities issued by the same price or fair value determined as per Regulatory entity would also be treated as NPI and guidelines. those equity shares would (i. be reckoned as NPI. is recognised at lower of: (i) Net Book Value (NBV) (i. by the RBI in the case of domestic offices and Costs and revenues are accounted as respective regulators in the case of foreign interest expenditure/income. (i) Government securities (ii) Other Approved Securities (d) The above would apply mutatis-mutandis (iii) Shares (iv) Bonds and Debentures (v) to Preference Shares where the fixed Subsidiaries and Joint Ventures. Investments are classified as performing and and Contra entries. investment in SR more stringent.e. Accordingly. Balance in Repo Account is offices. vi. Available for Sale and Held for Trading (c) If any credit facility availed by an entity is categories: Investments held under AFS and HFT NPA in the books of the Bank.. the transferred as in the case of normal Net Asset Value. as applicable to investments. as the case may be. 144 State Bank of India | Annual Report 2015-16 . is provided for and net appreciation. In case of sale of NPA (financial asset) (f) In respect of foreign offices. based on the guidelines issued are reversed on the date of maturity. and only the net depreciation of each vice versa. Investments of domestic offices become classified under Schedule 4 (Borrowings) non-performing where: and balance in Reverse Repo Account is classified under Schedule 7 (Balance with (a) Interest/installment (including maturity Banks and Money at Call & Short Notice). whichever is of Security Receipts (SR). are also subjected to NPI norms marking to market.. c) Investments in account of the non availability of the latest Regional Rural Banks are valued at carrying cost balance sheet. securities are to the instruments in the concerned scheme. ECGC claims received and bills by RBI: rediscounted. an guidelines prescribed by the regulatory authorities. non-performing. Loss Assets: 100% iv. the bill remains overdue for a period of more than 90 -Unsecured portion: 100% days. of principal remains overdue for a period of more iii. account may be reclassified as a performing asset if it subject to minimum provisions as prescribed below: conforms to the guidelines prescribed by the regulators. In respect of agricultural advances: (a) for short duration crops. if but the amount has not been fully written off.e. or interest remains overdue for one crop season. is reduced from advances. where the instalment of principal 3. In respect of Overdraft or Cash Credit advances. 3. State Bank of India | Annual Report 2015-16 145 .6 For restructured/rescheduled assets. provisions are non-performing for a period less than or equal to made in accordance with the guidelines issued by 12 months. which require that the difference between the fair value of the loans / advances before and after ii.7 In the case of loan accounts classified as NPAs. Doubtful: A loan asset that has remained in the restructuring is provided for. The Provision for iii. Loss: A loan asset where loss has been identified Diminution in Fair Value (DFV) and interest sacrifice. any. where realisable value of security is not more than i. or if there are no credits continuously for 90 days as on the date of balance-sheet. More than three years – 100% iii. of infrastructure advances where ii. and advances and provisions for NPAs are made as and (b) for long duration crops. Loans /Advances and Provisions thereon: Substandard Assets: i. certain safeguards such as the account remains “out of order”. Loan Assets become Non. In respect of term loans.2 NPAs are classified into Sub-Standard. Unsecured Exposure in respect than 90 days. based on the following criteria stipulated unrealised interest. i. in addition to provision sub-standard category for a period of 12 months. iii.4 In respect of foreign offices. Sub-standard: A loan asset that has remained 3. Upto one year – 25% credits are not adequate to cover the interest due ii. One to three years – 40% during the same period.3 Provisions are made for NPAs as per the extant 3.1 Loans and Advances are classified as performing and the total outstanding. Doubtful and 3. i. A general provision of 15% on 3.8 Amounts recovered against debts written off in earlier years are recognised as revenue in the year of recovery. 3.5 Advances are net of specific loan loss provisions. limit/drawing power continuously for a period of Doubtful Assets: 90 days. for the respective loans/advances. or if the -Secured portion: i. exposures which are unsecured Performing Assets (NPAs) where: ab-initio (i.3. In respect of bills purchased/discounted. the RBI. where the principal per the local regulations or as per the norms of RBI. arising out of the above. 3.e. based on the guidelines/ directives ii. interest and/or instalment 10 percent ab-initio). Loss Assets. if the escrow accounts are available - outstanding balance exceeds the sanctioned 20%. whichever is more stringent. the classification of loans or interest remains overdue for two crop seasons. Additional provision of 10% for issued by the RBI. such as 7. In respect of derivative contracts that are marked to market. restricted and off-credit and provisioning premium paid on options bought is considered to arrive made as per extant RBI guidelines. The quantum of floating which remain overdue for more than 90 days. Floating Provisions: industry. investments of change. currency 7. 6. no 6. are provisions to be created is assessed at the end of the reversed through Profit and Loss Account to “Suspense financial year. The categories. interest rate swaps.3 The rates of depreciation and method of charging depreciation in respect of domestic operations are as 6. Provision for Country Exposure: the positive MTM pertaining to future receivables is also reversed from Profit and Loss Account to “Suspense In addition to the specific provisions held according to Account .3 Except as mentioned above. insignificant. The swap contracts entered to hedge as site preparation. Derivatives: Account. These provisions are reflected marked to market. If the country at Mark-to-Market value for forex Over-the-Counter exposure (net) of the Bank in respect of each country (OTC) options. purposes are valued at prevailing market rates based The provision is reflected in Schedule 5 of the Balance on rates given by the Exchange and the resultant Sheet under the “Other liabilities & Provisions – Others”. contracts are marked to market as per the Generally Accepted Accounting Practices prevalent in the 4. The floating provisions are utilised only Account Crystallised Receivables”. gains and losses are recognized in the Profit and Loss 6. and cross currency interest rate swaps and depreciation/ amortisation.3. in Schedule 5 of the Balance Sheet under the head “Other Liabilities & Provisions – Others” and are not 6. installation costs and professional on-balance sheet assets and liabilities are structured fees incurred on the asset before it is put to use. forward rate agreements in order to hedge on-balance sheet/off-balance sheet assets and liabilities or for 7.1 Fixed Assets are carried at cost less accumulated swaps. 7. the overdue receivables remaining unpaid for 90 days. The to use are capitalised only when it increases the future impact of such derivative instruments is correlated with benefits from such assets or their functioning capability.Positive MTM”. namely. Hedge contracts are not marked to provisions are also made for standard assets as per market unless the underlying Assets/Liabilities are also extant RBI Guidelines. high.5 Exchange Traded Derivatives entered into for trading provision is maintained on such country exposures. balance in the premium received on options sold and very high.9 In addition to the specific provision on NPAs. all other derivative considered for arriving at the Net NPAs. In cases where the for contingencies under extraordinary circumstances derivative contracts provide for more settlement in specified in the policy with prior permission of Reserve future and if the derivative contract is not terminated on Bank of India.2 Derivative contracts classified as hedge are recorded under: 146 State Bank of India | Annual Report 2015-16 .4 Option premium paid or received is recorded in Profit country). does not exceed 1% of the total funded assets. in such a way that they bear an opposite and offsetting Subsequent expenditure/s incurred on the assets put impact with the underlying on-balance sheet items. the asset classification status. changes in the market value are The Bank has a policy for creation and utilisation of recognised in the Profit and Loss Account in the period floating provisions separately for advances. and general purposes.2 Cost includes cost of purchase and all expenditure such trading purposes. Fixed Assets Depreciation and Amortisation: foreign currency options. 5. Any receivable under derivatives contracts. moderate. provisions are also made for individual country exposures (other than the home 6. Countries are categorised into seven risk and Loss Account at the expiry of the option. low.1 The Bank enters into derivative contracts. general on accrual basis. the movement of the underlying assets and accounted in accordance with the principles of hedge accounting. Machine are applied to financial leases also. is amortised over the period of lease and the lease of the Computer rent is charged in the respective year(s). Foreign currency transactions are recorded on initial recognition in the reporting currency Furniture & by applying to the foreign currency amount Fixtures 10 Years the exchange rate between the reporting currency and the foreign currency on the date of transaction. the impairment to be Fixed Assets are as recognised is measured by the amount by which the under: carrying amount of the asset exceeds the fair value of the asset. depreciation is charged on depreciation proportionate basis for the number of days the assets have been put to use during the year.00% every year Fixed Assets are reviewed for impairment whenever Equipment Method events or changes in circumstances warrant that the 7 Other fixed assetsStraight Line On the basis of carrying amount of an asset may not be recoverable. If such assets of major group of are considered to be impaired. Development depreciation is provided as per the regulations /norms 4 Automated Teller Straight Line 20.8 In respect of fixed assets held at foreign offices. Premises 60 Years 10. Software forming Method 7.4 In respect of assets acquired during the year (for No. as laid down in Para 3 above. cost of Software 7.7 In respect of assets given on lease by the Bank on or Software which Method before 31st March 2001. Description of Method of Depreciation/ 7. if an integral part any.Sr.6 In respect of leasehold premises. State Bank of India | Annual Report 2015-16 147 . Machine/Cash Method Deposit Machine/ 8. Fixed Assets charging amortisation rate domestic operations). Impairment of Assets: Method 6 Network Straight Line 20.00% every year 9. Leases: Coin Dispenser/ The asset classification and provisioning norms Coin Vending applicable to advances.00% every year of the respective countries. the lease premium.33% every year 7.33% every year in the year of purchase. hardware 3 Computer Straight Line 33. and the difference between the annual lease of Computer charge (capital recovery) and the depreciation is taken hardware and to Lease Equalisation Account.33% every year Method 7.1 Foreign Currency Transactions Safe Deposit Lockers 20 Years i. 1 Computers Straight Line 33.5 Assets costing less than ` 1.000 each are charged off 2 Computer Straight Line 33. Method estimated useful life Recoverability of other financial assets held and used of the assets is measured by a comparison of the carrying amount of an asset to future Net Discounted Cash Flows Estimated useful life expected to be generated by the asset. the value of the assets given does not form on lease is disclosed as Leased Assets under Fixed an integral part Assets. 5 Servers Straight Line 25. Effect of changes in the foreign exchange rate: Vehicles 5 Years 10. employee renders the service. Foreign exchange forward contracts which are not on initial recognition in the reporting currency intended for trading and are outstanding on the by applying to the foreign currency amount Balance Sheet date. Monetary foreign currency assets and liabilities the contract. Exchange differences arising on the settlement closing (Spot/Forward) exchange rates notified of monetary items at rates different from those at by FEDAI at the Balance Sheet date and the which they were initially recorded are recognised resulting Profit/Loss is included in the Profit as income or as expense in the period in which and Loss Account. closing rates notified by FEDAI. The Assets and Liabilities of foreign offices in spot rates. Outstanding foreign exchange spot and forward using spot rates applicable to that country on the contracts held for trading are revalued at the Balance Sheet date. of integral foreign operations are translated at vii. The premium or discount arising at the currency and the foreign currency on the date of inception of such a forward exchange contract is transaction. Foreign currency transactions are recorded vi. daily basis and such gains/losses are recognised 11. are re-valued at the closing the exchange rate between the reporting spot rate. 11.2 Long Term Employee Benefits: i. Employee Benefits: in the Profit and Loss Account. Both monetary and non-monetary foreign i. viii. Foreign currency non-monetary items which are rates of open position in currency futures trades carried at historical cost are reported using the are settled with the exchange clearing house on exchange rate on the date of the transaction. Non-integral Operations: 11. Exchange differences arising on investment in carried at historical cost. are recognised during the period when the classified as Integral Operations. in Foreign Currency Translation Reserve until the disposal of the investment. Defined Benefit Plan currency assets and liabilities including contingent liabilities of non-integral foreign operations are a.2 Foreign Operations: The undiscounted amounts of short-term employee Foreign Branches of the Bank and Offshore Banking benefits.1 Short Term Employee Benefits: 10. i. All translated at closing exchange rates notified by eligible employees are entitled to receive benefits FEDAI at the Balance Sheet date. foreign currency (other than local currency of the foreign offices) are translated into local currency v. such as medical benefits which are expected Units (OBU) have been classified as Non-integral to be paid in exchange for the services rendered by Operations and Representative Offices have been employees. a. and the resulting Profit or Loss is b. iv. which are iii. Foreign currency non-monetary items. Contingent Liabilities are they arise. The 148 State Bank of India | Annual Report 2015-16 . The Bank operates a Provident Fund scheme. Gains/Losses on account of changes in exchange iii. Income and expenditure of non-integral foreign using the Foreign Exchange Dealers Association operations are translated at quarterly average of India (FEDAI) closing (spot/forward) rates. Integral Operations: recognised in the Profit and Loss account. Contingent liabilities denominated in foreign currency are reported using the FEDAI closing iv. amortised as expense or income over the life of ii. are reported using the non-integral foreign operations are accumulated exchange rate on the date of the transaction. exchange rates notified by FEDAI for specified maturities. ii. under the Bank’s Provident Fund scheme. translated at Spot rate. Foreign currency monetary items are reported ii. iii. The Bank makes periodic leave travel concession. c. which is a defined contribution plan. 1961 and as per Accounting Standard out at each balance sheet date. All eligible employees of the Bank are eligible of ` 10 lacs. out annually and Bank makes such additional contributions periodically to the Fund as may be 12. is provided for on the basis of actuarial completion of registration procedures of the employees valuation. of employment. Defined Contribution Plans: changes in the deferred tax assets or liabilities during the The Bank operates a New Pension Scheme (NPS) for year. these contributions are retained as deposits in the Bank and earn interest at the same rate as that b. monthly contribution to the Pension Fund at 11. retirement award and contributions to a fund administered by Trustees resettlement allowance. subject to a maximum amount a. tax and deferred tax expense incurred by the Bank. 2010. The Bank operates Gratuity and Pension of the current account of Provident Fund balance. The costs of such long based on an independent external actuarial term employee benefits are internally funded by valuation carried out annually. Past service on termination of employment. Deferred tax assets and liabilities are recognised State Bank of India | Annual Report 2015-16 149 . such eligible allowance). or on termination transferred to the NPS Trust. The pension liability is reckoned based accounted for as per the respective local laws/ on an independent actuarial valuation carried regulations. offices. or out at each Balance Sheet date. Deferred Tax adjustments comprises of ii. Pending if any. The cost of providing other long term benefits employees. The cost of providing defined benefits is The current tax expense and deferred tax expense are determined using the projected unit credit determined in accordance with the provisions of the method. Upon employees. Bank recognizes such annual contributions and interest i) The Bank provides for gratuity to all eligible as an expense in the year to which they relate. for an amount equivalent to 15 iii. with actuarial valuations being carried Income Tax Act. The benefit is in the form of lump sum receipt of the Permanent Retirement Account Number payments to vested employees on retirement. The benefit is in the form of monthly is determined using the projected unit credit payments as per rules to vested employees on method with actuarial valuations being carried retirement or on death while in employment. the consolidated contribution amounts are on death while in employment. Other Long Term Employee benefits: days basic salary payable for each completed year of service. and are charged to Profit and Loss Account. The the covered employees contribute 10% of their basic Bank recognizes such annual contributions as an pay plus dearness allowance to the scheme together expense in the year to which it relates. Shortfall. The schemes which are defined benefit plans. silver jubilee award. ii) The Bank provides for pension to all eligible b.“Accounting for Taxes on Income” respectively losses are immediately recognised in the Profit after taking into account taxes paid at the foreign and Loss Account and are not deferred. These contributions are new joinees not being entitled to become members of remitted to a Trust established for this purpose the existing SBI Pension Scheme. Actuarial gains/ 22 . Vesting occurs at cost is immediately recognised in the Profit and different stages as per rules. which are based on the tax laws of respective jurisdictions. with a matching contribution from the Bank. five years of service. concerned.3 Employee benefits relating to employees 10% of salary in terms of SBI Pension Fund employed at foreign offices are valued and Rules. or (PRAN). The Bank makes Loss Account and is not deferred. As per the scheme. the Bank. Vesting occurs upon completion of for compensated absences. Bank contributes monthly at a determined rate all officers/ employees joining the Bank on or after 1st (currently 10% of employee’s basic pay plus August. Taxes on income: required to secure payment of the benefits under Income tax expense is the aggregate amount of current the pension regulations. Deferred tax assets are obligation cannot be made. Earnings per Share: estimates. Share Issue Expenses: i. a reliable estimate of the amount of the profit and loss account. Such obligations are recorded as Contingent Liabilities. Metal Loan Assets: Advances and closing Gold balances are valued at 14. or at the balance sheet date. Basic Earnings per Share are computed by dividing the Net Profit after Tax for the year attributable 15. Gold Deposits. Bullion Transactions: to equity shareholders by the weighted average number The Bank imports bullion including precious metal bars of equity shares outstanding for the year. 14. outflow of resources embodying economic benefits will 1961.3 Provision for reward points in relation to the debit card holders of the Bank is being provided for on actuarial 13. such deferred tax assets can be realised against future profits. except in the extremely rare circumstances where virtual certainty supported by convincing evidence that no reliable estimate can be made. gold. 13. the Bank recognises provisions only when it has a present obligation as a Revenue and other Reserve include Special Reserve result of a past event.1 The Bank reports basic and diluted earnings per share 14. by considering the impact of timing differences between ii. Diluted Earnings per Share are computed using transactions.2 No provision is recognised for: 17. any present obligation that arises from past taxable income and accounting income for the current events but is not recognised because: year. Contingent available Market Rate as on the date of Balance Sheet. The fee is classified under commission the weighted average number of equity shares and income. issued by the Institute 16. Provisions.4 Contingent Assets are not recognised in the financial in accordance with AS 20 -‘Earnings per Share’ issued statements. The Bank also accepts deposits and lends dilutive potential equity shares outstanding at year end. and when a reliable a resolution approving creation of the Reserve and estimate of the amount of the obligation can be made. The Board of Directors of the Bank have passed be required to settle the obligation.1 In conformity with AS 29. Liabilities and Contingent Assets”. The impact of changes in deferred tax assets and liabilities is recognised in b. is provided unabsorbed depreciation and tax losses only if there is for. 14. 13. Deferred tax assets a. “Provisions. Contingent Liabilities and Contingent interest expense/income.2 Diluted Earnings per Share reflect the potential dilution The imports are typically on a back-to-back basis and that could occur if securities or other contracts to issue are priced to the customer based on price quoted by equity shares were exercised or converted during the the supplier. and carry forward losses. which is treated as deposits/advances as the case may be with the interest paid / received classified as 14. it is not probable that an outflow of and liabilities are measured using tax rates and tax resources embodying economic benefits laws that have been enacted or substantively enacted will be required to settle the obligation. confirming that it has no intention to make withdrawal from the Special Reserve. recognised and re-assessed at each reporting date. and would result in a probable created under Section 36(i)(viii) of the Income Tax Act. by the ICAI. any possible obligation that arises from past events and the existence of which will be confirmed only Share issue expenses are charged to the Share by the occurrence or non-occurrence of one or Premium Account. Special Reserves: of Chartered Accountants of India. The Bank earns a fee on such bullion year. or 150 State Bank of India | Annual Report 2015-16 . part of the obligation for which an outflow of resources Deferred Tax Assets are recognised on carry forward of embodying economic benefits is probable. based upon management’s judgment as to whether These are assessed at regular intervals and only that their realisation is considered as reasonably certain. on a consignment basis for selling to its customers. more uncertain future events not wholly within the control of the Bank. 30. 18.59.12% 12.00% ` 15.77.94 3.970. DBR.60% Balance of such shares issued and kept in abeyance Shareholding of is 8.79% from Government of India against preferential issue of AS PER BASEL III 10.030 (Previous Year 8. the Bank received application money AS PER BASEL II (Amount in ` crore ) of ` 5.06.69% crore.2015.500.40% amount of ` 9.BP.00 (PCPS)/Redeemable under the MTN Non call 400 Non-cumulative Preference Programme .25 million Shares (RNCPS)/ 12th series* years Redeemable Cumulative Bond issued 26.00 crore). (ii) Tier 1 Capital ratio (%) 10.34.00 crore (Previous Year ` 2.77.94% 12.Y.373.45. (vi) Number of Shares held by 4. Items As at As at on 01.SCHEDULE – 18: deferred tax asset for purposes of computation of Capital Adequacy as CET – 1 capital ratio.37.490.500.74 1. 31st March 31st March against preferential issue of 19.BC.No.00 Nil Particulars Date of Tenor Amount Equivalent Equivalent b) Preference Share Issue ` as on ` as on Capital Instruments: Nil Nil 31st March 31st March {Perpetual Cumulative 2016 2015 Preference Shares Bond issued 15. including share premium of ` 5.2015. The equity shares were allotted Capital Ratio (%) on 29.98.41% 10. (v) Percentage of the 60.92% 9.16.2015.250 Government of India d) Expenses in relation to the issue of shares: ` 8.393. 2015-16.18% 58.07.81% 9.00 (iii) Tier 2 Capital ratio (%) 3. The equity shares were allotted Sr.959.2007 Perpetual USD 2.21.95 crore. from Government of India No.760.04.750) of ` 1 each.83/21.34 crore (Previous Sr.00 credited to Capital Account and (iv) Total Capital Ratio (%) 13.66 (vii) Amount of Equity Capital 5. Innovative Perpetual Debt Instruments (IPDI) 1(AT 1) capital raised of which The details of IPDI issued which qualify for Hybrid a) PNCPS: Nil Nil Tier 1 Capital and outstanding are as under: b) PDI: Nil Nil A. (viii) Amount of Additional Tier 3.970. Share Capital 1. since Government of India they are subject to title disputes or are subjudice.03.04. Items As at As at Year ` 2.67.2015 and (iii) Tier 2 capital ratio (%) 3.406.970.20 2. Government of India. has given discretion to banks to 625 consider “Foreign Currency Translation Reserve” and million State Bank of India | Annual Report 2015-16 151 .25 16 dated 1st March 2016.652 4. including share premium of ` 2. Total USD 4.012 equity shares of ` 1 each to Government of India on 31.60% was kept in abeyance.720.140.95 crore).53% 2.720 Equity Shares of ` 1 each that had been issued Capital Ratio (%) as a part of the Right Issue -2008 but allotment of which (ii) Tier 1 capital ratio (%) 9.959.00 credited to Share Premium Account.10 % b) The Bank received application money of ` 2. were allotted on 16.02.393. (iv) Total Capital Ratio (%) 13. Foreign (ix) Amount of Tier 2 capital raised of which ` In crore a) Debt Capital instruments: 10.390 ( Previous 2016 2015 Year 10.012) equity shares of ` 1 each to (i) Common Equity Tier 1 N.201/2015.650. No.04.25 Preference Shares (RCPS)} under the MTN Non call 225 * Shares allotted on 1st April 2015 (considered under AT 1) Programme .65. Capital Ratio a) During the year.09.00* crore (Previous Year ` Nil) is debited to Share Premium raised Account.35.906.A.31% c) 9.06.2007 Perpetual USD 1.20% 2.1 Capital 2. The Bank has exercised NOTES TO ACCOUNTS the option in the above computation for F. 10.00 2. 10 yrs million 14th series# 1day RBI vide circular No. 31st March 2016 31st March 2015 (i) Common Equity Tier 1 9. the interest rate will be raised and fixed rate will be converted to floating rate.09.00* *Includes ` 2.12.a. of which ` 550 crore invested by SBI Employee Pension Fund. B. 2009-10.07.00 29.40 114 (Private placement) Bonds 2008-09(II) (Lower Tier II) 29. Domestic ` In crore Sr.05 3 SBI NON CONVERTIBLE PERPETUAL BONDS 2007-08 SBIN Series VI (Tier I) 165.2008 8. 1 SBI NON CONVERTIBLE PERPETUAL BONDS 2009-10 (Tier I) Series I 1. Subordinated Debts The bonds are unsecured.2009 9.85 111 (Private placement) Bonds 2006 (IX) (Lower Tier II) 27.08.00 06. the interest rate will be raised and fixed rate will be converted to floating rate. not reckoned for the purpose of Tier I Capital as per RBI instructions.07.2018 4 SBI NON CONVERTIBLE 1. 4.2006 9.2007 9.2021 6 SBI NON CONVERTIBLE 500.327.01.2018 5 SBI NON CONVERTIBLE 2.000.000.00 06.000.06. Amount Issue Interest % p.2006 8.2016 3 SBI NON CONVERTIBLE 1.00 14.80 180 (Private placement) Bonds 2006 (Upper Tier II) 05.a.2007 10.500. Amount /Date of Interest Period in Redemption % p. long term. non–convertible and are redeemable at par.06.2010 9.Bonds Board).00 30. These bonds are unsecured bonds and are listed in Singapore stock exchange (SGX.95 111 (Private placement) Bonds 2008-09 (IV) (Lower Tier II) 06.00 28. Months 1 SBI NON CONVERTIBLE 1. Nature of Bonds Principal Date of Rate of No.90 05.03.06.10 2 SBI NON CONVERTIBLE PERPETUAL BONDS 2009-10 (Tier I) Series II 1.00 28.2007 9.25 TOTAL 2.* If the Bank does not exercise call option by 15th May 2017. # If the Bank does not exercise call option by 27th June 2017.06.000 crore raised during the F.2021 152 State Bank of India | Annual Report 2015-16 .00 180 (Private placement) Bonds 2006 (II) (Upper Tier II) 06.06. Nature of Bonds Principal Date of Issue Rate of Maturity No.500.06.2009 8.2016 2 SBI NON CONVERTIBLE 225.03.00 27.03.165. The details of outstanding subordinate debts are as under:- ` In crore Sr.Y.80 111 (Private placement) Bonds 2006-07 SBS (Series II)(Lower Tier II) 30. 00 12.12.00 22.11.09. 3.2024 21 SBI NON CONVERTIBLE 250.10.2006 8.15 180 (Private placement) Bonds 2008-09 (V) (Upper Tier II) 06.03.85 180 (Private placement) Bonds 2006 (VI) (Upper Tier II) 04.2022 17 SBI NON CONVERTIBLE 2.10.000.2008 8.03.2025 24 SBI NON CONVERTIBLE.2015 8.97 180 (Private placement) Bonds 2006 (IV) (Upper Tier II) 13.95 180 (Private placement) Bonds 2006-07 SBIN (Series IV) (Upper Tier II) 29.06.37 180 (Private placement) Bonds 2006 (VIII) (Upper Tier II) 17.15 180 (Private placement) Bonds 2008-09 (III) (Upper Tier II) 02.2021 9 SBI NON CONVERTIBLE 1.00 24.00 18.12.17 180 (Private placement) Bonds 2008-09 24.2026 State Bank of India | Annual Report 2015-16 153 .00 17.02.523.2022 14 SBI NON CONVERTIBLE 200.02.12.03.2007 10.2006 8.33 120 Basel III Compliant Tier II Bonds 2015-16 (Series I) 23.2022 SBIN (Series V) (Upper Tier II) 15 SBI NON CONVERTIBLE 2.2010 9.25 180 (Private placement) Bonds 2006-07 22.09.02.00 16.2009 9. UNSECURED (Private Placement).2014 9.00 12.50 180 Non.2021 13 SBI NON CONVERTIBLE 1.10.03. Nature of Bonds Principal Date of Issue Rate of Maturity No.500.Convertible Bonds 2010 (Series II) 04.2022 16 SBI NON CONVERTIBLE 3.09.2006 8.00 23.00 29.2007 10.50 07.2006 8.2007 10.09. Amount /Date of Interest Period in Redemption % p.10 180 (Private placement) Bonds 2007-08 (II) (Upper Tier II) 12.12.09.2006 8.45 120 Basel III Compliant Tier II Bonds 2015-16 (Series II) 18.000.03.03.000.2024 19 SBI NON CONVERTIBLE 2.12. UNSECURED (Private Placement).2021 11 SBI NON CONVERTIBLE 1.000.11.00 02.2021 12 SBI NON CONVERTIBLE 100.00 13.2021 8 SBI NON CONVERTIBLE 615.00 04.00 06.10.06.03.20 180 (Private placement) Bonds 2007-08 (I) (Upper Tier II) 07.500.88 180 (Private placement) Bonds 2006 (VII) (Upper Tier II) 16.00 02.12.2006 8.90 180 (Private placement) Bonds 2008-09 (I) (Upper Tier II) 19.2025 23 SBI NON CONVERTIBLE.09.2024 SBIN (Series VII)(Upper Tier II) 22 SBI Public Issue of Lower Tier II 866.2023 18 SBI NON CONVERTIBLE 2.2009 9.96 180 (Private placement) Bonds 2006 (III) (Upper Tier II) 12.000. 4.2021 10 SBI NON CONVERTIBLE 400.69 120 (Private Placement) Bonds 2013-14 (Tier II) 02.000.01.01.500.00 15. Months 7 SBI NON CONVERTIBLE 600.92 04.000.02.a.09.2024 20 SBI NON CONVERTIBLE 1.09.2007 9.03.Sr.2016 8.00 19.98 180 (Private placement) Bonds 2006 (V) (Upper Tier II) 15.2009 9. 37.03. UNSECURED (Private Placement). 3.2016 8.660. 500.2011 9.39 168.61 246.00 21.496. Investments in Government Securities is net of ` 67.90 Notes: a.32 16.45 180 Non.436.13 iv) Add: Foreign Exchange revaluation adjustment 18.36 33. Movement of Provisions held towards Depreciation on Investments i) Balance at the beginning of the year 479.634.Convertible Bonds 2011 Retail (Series IV) 16.03.29 v) Less: Write back of excess provision during the year.2016 8.000.29 iii) Less: Provision utilised during the year 293.357.81 ii) Add: Provisions made during the year 610.90 1.03.000 crore (Previous Year ` Nil) utilised under Marginal Standing Facility (MSF) with RBI.10 479. Months 25 SBI Public Issue of Lower Tier II 3.401.72 511.67 ii) Provision for Depreciation (a) In India 294. 460.45 120 Basel III Compliant Tier II Bonds 2015-16 (Series III) 18. The details of Investments and the Movement of Provisions held towards Depreciation on Investments of the Bank are given below: ` In crore Particulars As at 31st March 2016 As at 31st March 2015 1.2026 28 SBI NON CONVERTIBLE.37.45 120 Basel III Compliant Tier II Bonds 2015-16 (Series IV) 21. Amount /Date of Interest Period in Redemption % p.83 758.2026 27 SBI NON CONVERTIBLE.955.36 vi) Balance at the end of the year 354.00 18.32 30.2011 9.56 4.65 iii) Net value of Investments (a) In India 4.03.Convertible Bonds 2011 Non Retail (Series IV) 828.25 (b) Outside India 59.603.95 180 Non.937.51.51.2026 TOTAL 42.71 30.03.02 2.03.Sr.547.03. Investments 1.60 16. Value of Investments i) Gross value of Investments (a) In India 4.374.98 (b) Outside India 39. Nature of Bonds Principal Date of Issue Rate of Maturity No.49 233.a.24 18.05 4. 154 State Bank of India | Annual Report 2015-16 .73 (b) Outside India 39.154 crore (Previous Year ` 36. UNSECURED (Private Placement).03.2026 26 SBI Public Issue of Lower Tier II 16.761 crore) utilised under Liquidity Adjustment Facility (LAF) and ` 32.2. 581.26 crore under right issue and thus stake of the Bank has increased from 78.102. Repo Transactions (including Liquidity Adjustment Facility .000 equity shares of CCIL at a profit of ` 108 crore. During the year.00) State Bank of India | Annual Report 2015-16 155 .LAF) The details of securities sold and purchased under Repos and Reverse Repos including LAF during the year are given below: ` In crore Particulars Minimum Maximum Daily Average Balance as on outstanding outstanding outstanding 31st March 2016 during the year during the year during the year Securities sold under Repos i. Government Securities . d.49 541.827.20%.00 (15.56) (258.83 176.51 99.00 per share to the Bank amounting to ` 379.395.90 crore. Private Investment “Unrated” “Unlisted” Placement Grade” Securities * Securities * Securities * i PSUs 19. the Bank has sold 24.97) (3.95 - (-) (22.484.59) (37.24 571.28) (-) Securities purchased under Reverse Repos i.33 crore) are kept as margin with Clearing Corporation of India Limited(CCIL) / NSCCL / MCX / USEIL / NSEIL / BSE towards securities settlement.00 4.603.581.36 (-) (54.b. During the year.12) (2.47) (-) (-) (200. 200. Government Securities .81. c. Corporate Debt Securities .47 1.445.779.96 crore (Previous Year ` 13.01) (418.010.69 18.43 9. Issuer Amount Extent of Extent of “Below Extent of Extent of No.718.07 (-) (516.692. Thus. Non-SLR Investment Portfolio a) Issuer composition of Non SLR Investments The issuer composition of Non-SLR investments of the Bank is given below: ` In crore Sr.23) ii.36 17. State Bank of Travancore allotted 94.000. . 55. i) State Bank of Patiala ` 799.58) (8.789.46 341.03) (419.99 crore.314.254.78 (14.39 .434.452.09%.518 equity shares of ` 10 each at a premium of ` 390.76) (719.51) (-) ii.826. 1.00. ii) SBI Foundation ` 1 crore.00% to 21.00) (9.751. Corporate Debt securities .91% to 79. . 2. e. Securities amounting to ` 2.01) ii FIs 29.998.97 crore and iv) Ellaquai Dehati Bank ` 8. During the year the Bank infused additional capital in its subsidiaries and associates viz. iii) Nagaland Rural Bank ` 0. - (-) (-) (-) (-) (Figures in brackets are for Previous Year) 3. . 99.406. the Bank’s stake reduced from 26. 92 844. Private Investment “Unrated” “Unlisted” Placement Grade” Securities * Securities * Securities * (iii) Banks 15.72 935.547.219.11 Reductions during the year 307.50) (933.39) (v) Subsidiaries / 11.905.110. .379. 156 State Bank of India | Annual Report 2015-16 .62 (22.525.07) (238. .698.90 2.825.15 4. 31.68 394.72 Total provisions held 126.16.464. Equity Oriented Mutual Funds.24 12.70) (798.785.947.01 1.05) (93.07 (1.53) (3.147.38) (852.90) (-) (6.67) Total 1.40 42.36) (vii) Provision held 354.18) (2.060. b) Non Performing Non-SLR Investments ` In crore Particulars Current Year Previous Year Opening Balance 401.04) (16. - Joint Ventures ** (9.54 499.36 48.06) (-) (-) (-) (-) (vi) Others 16. - towards depreciation (479.118.24 401.76) ( -) (719.67 (30.172.09) (Figures in brackets are for Previous Year) * Investment in Equity.63 Closing Balance 146.745.73 1.72) (62. Venture Capital.57) (38.104.93 78.34) (-) (-) (iv) Private Corporates 23.654.97 . Central Government Securities and ARCIL are not segregated under these categories as these are exempt from rating/listing guidelines.40 1.15 23.398.844. Rated Assets Backed Securities.963.70) (749.03 .299.10 . 1.88 - (11.81) (1.84 581.17 c) Sales and Transfers of Securities to/from HTM Category The value of sales and transfers of securities to / from HTM Category does not exceed 5% of the book value of investment held in HTM category at the beginning of the year.62 23.847.24 Additions during the year 52.06) (9. ** Investments in Subsidiaries/Joint Ventures have not been segregated into various categories as these are not covered under relevant RBI Guidelines.33) (1.256.594.04. ` In crore Sr.28 1.10 . Issuer Amount Extent of Extent of “Below Extent of Extent of No.846. 78 under the agreements iii) Collateral required by the Bank upon entering into swaps Nil Nil iv) Concentration of credit risk arising from the swaps Not significant Not significant v) The fair value of the swap book 946. N. State Bank of India | Annual Report 2015-16 157 .11 crore (Previous Year ` 14.014. The Bank also runs option position in USD/ INR. which is managed through various types of loss limits and Greek limits. not “highly effective”. Forward Rate Agreements / Interest Rate Swaps ` In crore Particulars As at As at 31st March 2016 31st March 2015 i) The notional principal of swap agreements# 1.A.624.24 # IRS/FRA amounting to ` 11.A. Interest Rate Derivatives dealt by the Bank are rupee interest rate swaps. The Bank currently deals in over-the-counter (OTC) interest rate and currency derivatives as also in Interest Rate Futures and Exchange Traded Currency Derivatives.3.232.61 ii) Losses which would be incurred if counterparties failed to fulfil their obligations 2. 1 Notional principal amount of exchange traded interest rate derivatives undertaken during the year a Interest Rate Futures Nil Nil b 10 Year Government of India Securities 235.13 2 Notional principal amount of exchange traded interest rate derivatives outstanding as on 31st March 2016 a Interest Rate Futures Nil Nil b 10 Year Government of India Securities Nil 2.072.965. The products are offered to the Bank’s customers to hedge their exposures and the Bank enters into derivatives contracts to cover such exposures. Derivatives are used by the Bank both for trading as well as hedging balance sheet items.31 996.A.53 crore) entered with the Bank’s own foreign offices are not shown here as they are for hedging of FCNB corpus and hence not marked to market. Floor and Collars. Cap.74 19.00 1.18. foreign currency interest rate swaps and forward rate agreements.00 3 Notional principal amount of exchange traded interest rate derivatives outstanding N. Exchange Traded Interest Rate Derivatives ` In crore Sr.90 92. Derivatives A. N. Risk Exposure in Derivatives (A) Qualitative Risk Exposure i.A.30. Currency derivatives dealt by the Bank are currency swaps. and not “highly effective” 4 Mark-to-market value of exchange traded interest rate derivatives outstanding and N.945. C. rupee dollar options and cross-currency options. B.080. Particulars Current Year Previous Year No. 17 crore (Previous Year ` 8.486.487. limits and customer appropriateness and suitability of policy (CAS) etc.774.57 979. Credit risk is controlled by entering into derivative transactions only with counterparties satisfying the criteria prescribed in the Policy.45 1.152. Derivative transactions carry market risk i.49 (iv) Likely impact of one percentage change in interest rate (100* PV01) (a) on hedging derivatives -0.206.85 369. PV01 etc.811. the details of which are presented under Schedule 17: Significant Accounting Policies (SAP) for the financial year 2015-16. vi.ii. (B) Quantitative Risk Exposure ` In crore Particulars Currency Derivatives Interest Rate Derivatives Current Year Previous Year Current Year Previous Year (i) Derivatives (Notional Principal Amount) (a) For hedging 17.02 -63.145.89 667.960.056.49 74.) as well as customer eligibility criteria (credit rating. -34.11 –Minimum -0.14 -79.642. modified duration.e.28 @ 4.) for entering into derivative transactions.90 0. 0. The accounting policy for derivatives has been drawn-up in accordance with RBI guidelines.870.925.01 (ii) Marked to Market Positions (a) Asset 3.53 2.713.09 -92.67 6. v. Apart from hedging swaps.e. Kolkata.05 2. iii. The Asset Liability Management Committee (ALCO) of the Bank oversees efficient management of these risks.90 11. measures. the probable loss the Bank may incur if the counterparties fail to meet their obligations.44 (v) Maximum and Minimum of 100* PV01 observed during the year (a) on hedging –Maximum 0. the probable loss the Bank may incur as a result of adverse movements in interest rates / exchange rates / equity prices and credit risk i.699. duration.47 (iii) Credit Exposure 7.92 crore) entered with the Bank’s own foreign offices are not shown here as they are for hedging of FCNB corpus and hence not marked to market.04 -0. swaps at Foreign Offices consist of back to back swaps done at our Foreign Offices which are done mainly for hedging of FCNR deposits at Global Markets.24 (b) on trading –Maximum 0. open position limits.42 3. monitors market risk associated with derivative transactions.04 0. assists ALCO in controlling and managing these risks and reports compliance with policy prescriptions to the Risk Management Committee of the Board (RMCB) at regular intervals.280.00 (b) Liability 2.039 -0.22 0.05 0. tenure of relationship. iv.128.07 # (b) For trading* 2. vii.32.38 –Minimum .40 3.450. 158 State Bank of India | Annual Report 2015-16 .42 (b) on trading derivatives 2. Majority of the swaps were done with First class counterparty banks.03 -44.2225 @ The swaps amounting to ` 7. Interest Rate Swaps are mainly used at Foreign Offices for hedging of the assets and liabilities.36 -88.61 @ 55.34 24.714.68 2.42 62.88 20.84 3.42. The Bank’s “Policy for Derivatives” approved by the Board prescribes the market risk parameters (cut-loss triggers. The Bank’s Market Risk Management Department (MRMD) identifies.48 # 69. Appropriate limits are set for the counterparties taking into account their ability to honour obligations and the Bank enters into ISDA agreement with each counterparty.08 .971. 81% 2.995.29.725.18 9.42 accounts) (e) Technical/ Prudential Write-offs Nil Nil (f) Reductions due to Write-offs during the year 15.37 Less: (c) Reductions due to upgradations during the year 2.07 (b) Additions during the year 36.71 21.757.763.58 31.598.73 19.97 crore (Previous Year ` 14. The outstanding notional amount of derivatives done between Global Markets Unit and International Banking Group as on 31st March 2016 amounted to ` 19.010.930.02 27.590.28 (b) Provisions made during the year 28.923.096.304.34 iii) Movement of Net NPAs (a) Opening balance 27.134.39 crore) 1.24 crore (Previous Year ` 1.76 30.78 29.53 crore) entered with the Bank’s own Foreign offices are not shown here as they are for hedging of FCNB corpus and hence not marked to market.59 3.02 Sub-total (I) 120.590.83 91.379.03 34. Asset Quality a) Non-Performing Assets ` In crore Particulars As at As at 31st March 2016 31st March 2015 i) Net NPAs to Net Advances (%) 3.80 56.46 Sub-total (II) 22.27 crore (Previous Year ` 62.192.235.005.11 crore (Previous Year ` 14.435.315.774.4.64 crore (Previous Year ` 69.071.113.172.41 (c) Write-off / write-back of excess provisions 14.61 (c) Reductions during the year 7.751.26 21.072.509. Currency Derivatives – Nil (Previous Year ` 7.01 crore) and the derivatives done in- between SBI Foreign Offices as on 31st March 2016 amounted to ` 18.64 crore) respectively.58 iv) Movement of provisions for NPAs (a) Opening balance 29.040.134.776.17 crore).365.15 (d) Reductions due to recoveries (Excluding recoveries made from upgraded 4.35 (b) Additions (Fresh NPAs) during the year 64.49 29. State Bank of India | Annual Report 2015-16 159 .# IRS/FRA amounting to ` 11.28 crore (Previous Year ` 30.30 crore) and ` 67. 2.605.10 (d) Closing balance 55.504.66 crore).17 crore) and Interest Rate Derivatives – Nil (Previous Year ` 62.03 (g) Closing balance (I-II) 98.76 Opening and closing balances of provision for NPAs include ECGC claims received and held pending adjustment of ` 62.303.232.34 61.043.389.198.12% ii) Movement of NPAs (Gross) (a) Opening balance 56.93 (d) Closing balance 42. * The forward contract deals with our own Foreign Offices are not included.976.725. The outstanding notional amount of interest rate derivatives which are not marked-to-market (MTM) where the underlying Assets/Liabilities are not marked to market as on 31st March 2016 amounted to ` 66.32 13.76 9.453. 18.807. 847.536.17 1.26) (251.29) (-3.27 -29. Asset Classification Standard Sub Doubtful Loss Total Standard Sub Doubtful Loss Total Particulars Standard Standard 1 Restructured Accounts No.80) (3.56 369.) (59) (97) (29) (20) (1) (147) Amount outstanding 1.67) (. b) Restructured Accounts 160 ` In crore Sr.44) (499.13 85.982.89) (169.87) (-) (-3. of Borrowers 2 . 58.28 5.00 (21.202.08) (90.05 . 2015 (110) (13) (40) (3) (166) (483) (35) (78) (9) (605) (Opening position) Amount outstanding 25.636.74) (1.325.834.44) (1616.95 71.97 143.44 .99) (-) (-) (3. - standard category during (5) (-2) (-3) (-) (-) (2) (-) (-2) (-) (-) current FY Amount outstanding 217. of Borrowers 2 .68 -14.91 .96) (86. 203.54) (-243.079.47 . -5 .61) (836.71) (1.47 -324. 107.76 5. of Borrowers -16 .035.066.65) (194. - (699.182.40) 3 Upgradation to restructured No.04) (310. 5 .10) (2217.03 -2.) (92.76) (6.32) (60.42) hence need not be shown Provision thereon -41.94 477.09) (5.00 (664.98) (2.208.31 999.48 31.46 393. . 5 22 5 10 1 38 the current FY (47) (4) (8) (.33) (82.06 .90 183.58 (8.49 3.42) (-243. 184.73) (0.54 28.49) (117.87 -41.93) (839.) (9696.77 -1.68) Provision thereon -183.134.77 .12) (-3. of Borrowers 121 7 47 2 177 315 90 107 11 523 as on April 1.65 . .25 -0.10 -968.54) (1800.03) 2 Fresh Restructuring during No.32 .91 -612. -1 -1 .58 State Bank of India | Annual Report 2015-16 (1.59 4.71 2.89 92.15 2.44) (14. .15) (364.10) Provision thereon 1.89) (0.03 2.87 -1.21) (22.62 -44.63 -5. 2.29) (-76. Type of Restructuring Under CDR Mechanism (1) Under SME Debt Restructuring Mechanism (2) No.91 2.40 47.81) (. -79 Advances which ceases to (-20) (-20) (-68) (-68) attract higher provisioning Amount outstanding -968. 3 .19) (. .17) (5.58 -140.382.12) advances at the beginning of the next FY .592.74) (-1.77 as restructured standard (-76. -16 -79 .26) (-) (-) (-) (-) (-) (-) (-) 4 Restructured Standard No.14) (2176.69 46.679.57 12.87) (-) (-) Provision thereon 6.32) (648. 7.00 121.800.209. - (29.18 1.05 103.22 .65 2.49) (-28.) (769. 23.09) (-38.74) (27.168.91 and/ or additional risk weight at the end of the FY and (-1.34) (520.85 9.09) (-660.10 -612. 24 104.28 -478.186.90) (-33.177. -793.16 -115.66) (-) (-31.333.76) (5.00) (121.372. - (-122.49) (-) (-1.03) (2.53) (904.45 303.11 1.95) (71.92 -43.28) (5.38 10.12 -30.03 219.23 28.40) (47.58) State Bank of India | Annual Report 2015-16 161 .05) (103.59) (-125.24 20.10) (-728.43 14.32) (-) Provision thereon -537. of Borrowers -12 -1 -9 -2 -24 -46 -42 -18 -10 -116 accounts during current FY (-5) (-4) (-15) (-4) (-28) (-109) (-13) (-32) (-7) (-161) Amount outstanding -2.83) (-100.51) (-0.49) (3.57) (-2.205.10) (-17.62) (47. 2016 (121) (7) (47) (2) (177) (315) (90) (107) (11) (523) (Closing Position) Amount outstanding 14.02 (25.98) (2.81 13.21 .58 -1.982.035. -33.91) (-12.08) (-368.88 -4.64) (-9.37) (87. Type of Restructuring Under CDR Mechanism (1) Under SME Debt Restructuring Mechanism (2) No.83 -19.592.66) (2.36 .725.96 19.99 2.32 13.02 -4.28) (-707.83 -760.94) (477. of Borrowers 62 3 74 3 142 186 46 123 11 366 as on 31st March.73) 7 Total Restructured Accounts No.148. -588.079.90) (183. Asset Classification Standard Sub Doubtful Loss Total Standard Sub Doubtful Loss Total Particulars Standard Standard 5 Downgradation of No. -31 -7 29 9 - restructured accounts during (-16) (-4) (17) (3) (-) (-90) (39) (43) (8) (-) current FY Amount outstanding -9.76 .90) (-499.36) (-272.49) (31.746. Sr.252.41 -341.744.41 -1. 171.00) Provision thereon 779.16 61.89 0.97 .512.35) (-1.687.77) (-) (203.70) (-268.56 4.39) (-195.32) (24.517.47 223.53) (-43.82)(-252.36) Provision thereon -310.106.29 637.50 -145.847.57 -80.32) (17.25 -579.86 - (-2.13) (85.03) (-411.045. -36.94 1.74) (-3840.19) (477.70 -6.54 31.70 -22.56) (369.182.202.95 (1.35) (-) 6 Write-offs of restructured No.65 .85) (9.97) (23.309. of Borrowers -35 -3 34 4 .64 411.86 (-283.42 236.31) (999.13) (250.62 49.65 (-437.35) (-10.181.93 444.49 18.325.97 .534.15 13. 303. Type of Restructuring Others (3) TOTAL ( 1 + 2 + 3 ) No.97 5.437.00) (3.345.19) (16.17 55.416.84) (47.81) (26.31) (257.228.638. 22. of 676 1.301.54 4.69 -48.370 1. -10.60) (1.48 65.59 -163.06 -322.940.27 33.63) 3 Upgradation to No.80) (12.218.20 -0.763 1.162 Sr.646.018.34) (469. of -51 -51 -146 -146 Advances which cease to Borrowers (-385) (-385) (-473) (-473) attract higher provisioning and/ or additional risk Amount -3.43) (-) (-) 4 Restructured Standard No.61 -16.82 -160.61) beginning of the next FY .20 868.49 -2.065.76) (-267.088) (750) (77) (5.937.15 53.96 80.66) (1.54) (-3.772.343.59 126.32) (16.97) (24.50) (-3.505 476 4.18 -160.10 51.79) (173.90) (1.00) (5. 2015 (Opening Borrowers (3.51) (374.69 12. Asset Classification Standard Sub Doubtful Loss Total Standard Sub Doubtful Loss Total Standard Standard Particulars 1 Restructured Accounts as No.03 10.10) (973.078.136) (868) (89) (6.497.457) position) Amount 27.12 -4.82 6.66) Provision 1.273 1.87) (283. of 13 1 4 -18 .82 be shown as restructured thereon standard advances at the (-34.17) (-) (-) (29.01 thereon (713.356.92 0.68) (43.77 -110.97 770.74) (-0.07) (1.61 12.15) (113.72) (58.75 195.88 outstanding (14.13 305.18 23.81) (3.20) (-34.463 on April 1.94 -2.916.654.09) (1.07) (1.50) FY and hence need not Provision -117.81) (-229.351 463 3.320.25) (165.139.40) (2.33) (28.39 3.58 138.32) (-29.460.54 9. of 105 252 73 19 449 129 257 86 20 492 State Bank of India | Annual Report 2015-16 during the current FY Borrowers (364) (288) (580) (119) (1351) (508) (321) (608) (120) (1557) Amount 6.11 -4.32 8.112 1.064. 20 1 -2 -19 - restructured standard Borrowers (7) (-3) (-3) (-1) (-) (14) (-5) (-8) (-1) (-) category during current FY Amount 373.96 .92) (-44.90 .61) (-113.73 1.17) (-1.83 2.18 -117.58) (319.67 -259.62 3.378.67 outstanding (18.942.32) (-664.49) (2.03 71.711.25 0.646.11 -3.56 thereon (662.140.54) (-1.842.65 - outstanding (273.43 394.29 -373. 649.650.66) (751.39 102.095.364) (1.829.16) (302.12 weight at the end of the outstanding (-1.82 5.63 706.98 3.771) (1.050.52) (-) Provision 13.537.74 .28 - thereon (-) (1.252.345.301.05) (-44.898.408.32) (2.950.686) (4.20) (-113.09) Provision 15.081.04 2.93) (1.11 -32.123.23) (-0.065.62) (3.27) (470.52) (-) (976.63 284.36) (47.84) 2 Fresh Restructuring No. 56) Note: 1.73 1. Sr.961.432.03) (71.055.755 Accounts as on 31st Borrowers (676) (1.22) (3. State Bank of India | Annual Report 2015-16 163 .59) Provision -348.897.63 0.58) (138.28 -354.88 15.89) (-7.058.08) (236.20) (868.28 -4.252.21 253.042. of 301 520 2.92) (2.34) (-) Provision -256.37) (-531.06 5.69) (12.95) (-3.117.74) (-917.40 crore (Previous Year ` 3.53 -3.42 thereon (-187.02 546.624.71 413. -826.81) (-178. 3.79 -2.13 30.83) (2.218) (500) (362) (356) (-) during current FY Amount -5.98 1.66 .37 1.13) (305.42 578.12 910.31 -5.17) (55.92 .54 0.82) (5.24) (54.036.112) (465) (302) (345) (-) (-1.24 -245.65 crore) included in Fresh Additions.18 42.794.24 outstanding (-1.83) (-13.210.378.44) (-48.900.054 accounts during current Borrowers (-1969) (-565) (-278) (-77) (-2889) (-2083) (-582) (-325) (-88) (-3078) FY Amount -2.97) (770.90 - thereon (-58.413.537.84 -15.336 90 3.533 104 3.08 5. of -203 -832 1.94) (-) (-212.91 -9.31 thereon (1.247 549 569 2.03 crore) is included in Write off. of -239 -174 -224 -277 -914 -297 -217 -251 -289 -1.731.30) 7 TOTAL Restructured No. 2016 (Closing Position) Amount 23.40) (0.437. 2.16 25.89 .65) (-22.47 -546.505) (476) (4463) March.74) (-7.93) (-915.99 -22.59) (126. Asset Classification Standard Sub Doubtful Loss Total Standard Sub Doubtful Loss Total Standard Standard Particulars 5 Downgradations of No.73 9.351) (463) (3.15 crore) and decrease in Outstanding of `4.231.40 -26.72 -1.39) (3.14) (53.17 33.61) (12.839.48) (-1.426.95 crore (Previous Year ` 3.481.07 39.112) (1.86) (-499.94 291.818.68 39. Type of Restructuring Others (3) TOTAL ( 1 + 2 + 3 ) No.16) (68.96) (-4.-15.70) (-285.45) (166.827.842.095.11 crore (Previous Year ` 3.35) (-221.064. Total Column does not include standard assets moved out of higher provisioning.273) (1.22) (-1.479.75 146.309.139.243.97) (5.122.223.13 -318.77 -39.27) (33.43) (394.228.95) (-) 6 Write-offs of restructured No.67 -714.638.135.50) (-521.65) (-1.332. -1.98) (3.654.67) Provision 403.386.37) (5.85 -173.36 -819.03 440.19 outstanding (27.491.94 - outstanding (-2429.43) (-1.05) (-66.888.333.40) (964.763) (1.95 66.04) (-515.398.769.73) (1.65 -703.549.140.370) (1.53 (-) -718.273.685. -269 -842 1.583. Increase in outstanding of `4.03 7.195 -84 - restructured accounts Borrowers (-1.132 -97 . Closure of `4.97 -61.404.53) (-) (-6. 981.904 Technical/Prudential ii) Aggregate value 1. of Accounts 46.57 3.337.63 4.500.35) (loss) over net book v) Closing balance as at Nil Nil value # March 31 (A-B) * SRs received as part of considerations have been recognised at lower of Net book Value/ Face Value as per RBI Guidelines.733.35 Security Receipts as on 31st March 2016 Book Value of Investments in 783.07 consideration* iii) Sub-total (A) Nil Nil iv) Additional Nil Nil iv) Less: Recoveries Nil Nil consideration realized made from previously in respect of accounts technical/prudential transferred in earlier written-off accounts years during the year (B) v) Aggregate gain / (493.425. # Includes amount of ` 0.c) Details of Technical Write-offs and the recoveries d) Details of financial assets sold to Securitisation made thereon: Company (SC) / Reconstruction Company (RC) for Asset Reconstruction ` In crore ` In crore Particulars Current Year Previous Year Particulars Current Year Previous Year i) Opening balance of Nil Nil i) No.63 4.92 3.703.05 786.399 5.19 30.82 4.28 27.25) (2.339.53 Security Receipts made during the year 164 State Bank of India | Annual Report 2015-16 .575.88 6.42 written-off accounts (net of provisions) of as at April 1 accounts sold to SC/ ii) Add: Technical/ Nil Nil RC Prudential write-offs iii) Aggregate 1.07 5.52 crore) credited to charges/ (interest) account.007.452.65 2. e) Details of Investments in Security Receipts against NPAs sold to Securitisation Company (SC) / Reconstruction Company (RC) ` In crore Particulars Backed by NPAs sold by Backed by the NPAs sold Total the bank as underlying by other banks/ financial institutions / non-banking financial companies as underlying Current Previous Current Previous Current Previous Year Year Year Year Year Year Book Value of Investments in 5.406.48 2.52 crore (Previous Year ` 7. Profit per employee (` in thousands) 470.54 10.34 vi. of Accounts sold 45.46% 0.59 9.11 12. number of accounts restructured during the year Nil Nil (b) Aggregate outstanding Nil Nil h) Details of non-performing financial assets sold ` In crore Particulars Current Year Previous Year 1) No.825 2) Aggregate outstanding 2.188.168.f) Excess Provision reversed to Profit & Loss Account on account of Sale of NPAs to Securitisation Company (SC)/ Reconstruction Company (RC) ` In crore Particulars As at As at 31st March 2016 31st March 2015 Excess Provision reversed to P&L Account in case of Sale of NPAs 11.94% iv.00 * (on net-assets basis) State Bank of India | Annual Report 2015-16 165 . Non-interest income as a percentage to Working Funds 1.62 4. of Accounts purchased during the year Nil Nil (b) Aggregate outstanding Nil Nil 2) (a) Of these.27% 7.852.60 i) Provision on Standard Assets The Provision on Standard Assets held by the Bank as on 31st March 2016 is as under: ` In crore Particulars As at As at 31st March 2016 31st March 2015 Provision towards Standard Assets 11.25% 1. Operating Profit as a percentage to Working Funds 1.331 1. Interest Income as a percentage to Working Funds 7.92% 1. Business (Deposits plus advances) per employee (` in crore) 14.13% iii.018.36 j) Business Ratios Particulars Current Year Previous Year i.27 602.70 177.294.55 3) Aggregate consideration received 955.42 g) Details of non-performing financial assets purchased ` In crore Particulars Current Year Previous Year 1) (a) No.61% ii.68% v. Return on Assets* 0. 43) (11.291.275.29) Foreign Currency 78.53) (3.73.76) (1.42 (93.449.27 52.109.13 55.16.10 26.803.25 89.75) State Bank of India | Annual Report 2015-16 Borrowings 2.052.70) (7.59.35) (14.93 3.867.39 4.76.412.78 1.53) (15.23) (44.060.999.385.224.60) (3.136.330.943.712.43) (16.620.69 31.84.665.38 18.701.589.967.61 4.174.40) (2.43) (35.27.120.50) (18.859.953.964.563.54 1.530.441.722.42.11) (43.59 990.318.578.94 1.95 30.14) (4.48 16.26) (69.54 Assets # (81.153.455.118.699.526.428.758.71) (24.80 8.569.42) (7.94 59.37 65.16 6.190.522.17 45.37) (4.75 57.54 9.835.63.12) (5.98) (1.56) (80.44 (57.89) (34.68.85 7.59 (11.495.613.68) (2.24.57 10.95) (2.91) (14.767.293.946.28 (-) (829.71.290.04 2.505.28 14.160.236.342.543.81) (26.085.22 3.64 9.850.25 62.97.714.541.463.28 2.16 3.46) (39.894.204.98 4.749.111.00 91.803.981.59) (1.37) (26.30.07 1.512.06.118.43.569.89) (17. k) Asset Liability Management: Maturity pattern of certain items of assets and liabilities as at 31st March 2016 166 ` In crore Day 1 2 to 7 days 8 to 14 days 15 to 28 days 29 days to 3 Over 3 Over 6 Over 1 year & Over 3 years Over 5 years TOTAL months months months & upto 3 years & upto 5 & upto 6 upto 1 year years months Deposits 32.150.793.097.93.64 19.67 Liabilities$ (33.00) (19.26 25.05.786.83) (52.277.55) (73.00.293.307.601.70 639.350.218.910.60 20.31 4.62) (2.671.29.352.10 1.983.679.42.562.677.185.25) Advances 81.81.01) (1.02 17.751.806.89) (93.095. (Figures in brackets are as at 31st March 2015) .86) (17.100.64 47.519.53) Foreign Currency 28.22 66.324.75.27 3.50 51.66 12.818.88) (14.919.574.61) (49.958.243.576.30.13 10.16) (21.81 17.39) Investments 0.019.74.719.15) (6.67) # Foreign Currency Assets represent advances and investments (net of provision thereof) $ Foreign Currency Liabilities represent borrowings and deposits.614.42 19.254.87 59.026.65.14 20.433.513.273.19 31.078.586.336.90) (28.56) (20.67 2.10 32.181.03) (2.00) (2.04) (39.48) (6.41 16.248.39 36.23) (34.51) (15.753.347.058.22 1.92.47) (52.338.64) (17.991.77) (68.91) (85.55 89.63) (17.59) (16.64 10.231.29) (1.91.666.325.306.851.454.116.264.77.543.79) (13.28.38 17.42) (4.700.39.89) (3.023. State Bank of India | Annual Report 2015-16 167 .83.18.32 and units of equity-oriented mutual funds the corpus of which is not exclusively invested in corporate debt.930.765. retail 27. which are sensitive to asset price fluctuations.656. land acquisition.388.330. convertible debentures 4. convertible bonds.082. multi purpose commercial premises.5. Exposures would also include non fund based (NFB) limits. industrial or warehouse space.761.36 8. multi tenanted commercial premises.934.765. Exposures The Bank is lending to sectors.364.40 1. development and construction etc.48 exposures: a) Residential 877.026.60 20.53 3.11 basis to individuals for investment in shares (including IPOs/ ESOPs).16 and Housing Finance Companies (HFCs) Total 2.20 (II) Indirect Exposure Fund based and Non-fund based exposures on National Housing Bank (NHB) 28.99 614.83. hotels. multi family residential buildings.55 (Population < 10 lacs) and ` 15 lakh in other centres for purchase/construction of dwelling unit per family.99 603.23 occupied by the borrower or that is rented.55 18.06. convertible bonds. Of which (i) Individual housing loans up to ` 25 lakh in Metropolitan centres 1.63.65 space. iii) Investments in Mortgage Backed Securities (MBS) and other securitised 877.54 2.082.23 Lending fully secured by mortgages on residential property that is or will be 2.664. convertible debentures and units of equity-oriented mutual funds.40 1.727.43 94.04. a) Real Estate Sector ` In crore Particulars As at As at 31st March 2016 31st March 2015 (I) Direct exposure i) Residential Mortgages 2. ii) Commercial Real Estate Lending secured by mortgages on Commercial Real Estates (office building.23.06. 2) Advances against shares/ bonds/ debentures or other securities or on clean 5.28 b) Commercial Real Estate 0 11.52 b) Capital Market ` In crore Particulars As at As at 31st March 2016 31st March 2015 1) Direct investment in equity shares. Name of Company Amount of exposure Converted No. 5) Secured and unsecured advances to stockbrokers and guarantees issued on 333.04 0. 9) Financing to stockbrokers for margin trading.13 security of shares or convertible bonds or convertible debentures or units of equity oriented mutual funds i. 0. 4) Advances for any other purposes to the extent secured by the collateral 19. Nil Nil 8) Underwriting commitments taken up by the Banks in respect of primary issue of Nil Nil shares or convertible bonds or convertible debentures or units of equity oriented mutual funds.66 convertible debentures or units of equity oriented mutual funds are taken as primary security. into equity 1 Coastal Projects Ltd 25.873.e.339.52 7.588.05 Total Exposure to Capital Market 15.44 1.618.98 13. ` In crore Particulars As at As at 31st March 2016 31st March 2015 3) Advances for any other purposes where shares or convertible bonds or 9.34 10) Exposures to Venture Capital Funds (both registered and unregistered) 1.00 3 Monnet Ispat & Energy Limited 24.87 behalf of stockbrokers and market makers 6) Loans sanctioned to corporates against the security of shares/ bonds/ 516. 7) Bridge loans to companies against expected equity flows/ issues.76 debentures or other securities or on clean basis for meeting promoter’s contribution to the equity of new companies in anticipation of raising resources.358.859.82 308.12 168 State Bank of India | Annual Report 2015-16 .87 285.86 2 IVRCL 200.24 c) Strategic Debt Restructuring (SDR) Scheme During the year the debt was converted into equity under SDR for the following borrowers:- ` In crore Sr.40 26. where the primary security other than shares/ convertible bonds/convertible debentures/ units of equity oriented mutual funds does not fully cover the advances. 41 2.06 78.599. 2015-16).96 78.11 5. hence provision for the country exposure on USA has been made.296. the country exposure of the Bank is categorised into various risk categories listed in the following table.83 883.89 Low 2.107. d) Risk Category wise Country Exposure As per the extant RBI guidelines.914.41 Nil Nil Off-Credit Nil Nil Nil Nil Total 1.00 1.22 3.148.70 3.60 56.47. ` In crore Risk Category Net Funded Exposure Provision held As at As at As at As at 31st March 2016 31st March 2015 31st March 2016 31st March 2015 Insignificant 1. No breach of Prudential Norms since Exposure on BHEL was well within the discretion given to banks by RBI for taking additional 5% exposure over the prudential limits.78 Nil Nil Low Medium 55.790.037.22 Electricals Ltd Note :- 1.05 April 2015 to March 2016 21.696.021.481.22 25. State Bank of India | Annual Report 2015-16 169 .672. Exposures on all the Borrower Groups were within the Prudential Norms during the year (F.60 56.89 e) Single Borrower and Group Borrower exposure limits exceeded by the Bank The Bank had taken single borrower exposure in excess of prudential limit prescribed by RBI in the cases given below: ` In crore Name of the Exposure Ceiling Exposure Sanctioned Period during which limit Outstanding as on Borrower (Peak Level) exceeded 31st March 2016 Bharat Heavy 23.790.393.390. The country exposure (net funded) of the Bank for any country does not exceed 1% of its total assets except on USA.36 26.32 94.942.43 Nil Nil Medium 5.182.125.68 Nil Nil Very Low 69.82 Nil Nil High 6.Y.82 Nil Nil Restricted 4.69 52.774. 2.96 Nil Nil Very High 2. f) Unsecured Advances ` In crore Particulars As at As at 31st March 2016 31st March 2015 a) Total Unsecured Advances of the bank 3,15,779.06 2,59,109.61 i) Of which amount of advances outstanding against charge over intangible 2,183.46 5,832.72 securities such as rights, licences, authority etc. ii) The estimated value of such intangible securities (as in (i) above). 2,748.40 6,005.01 18.6. Miscellaneous a) Disclosure of Penalties ` Nil (Previous year ` Nil) imposed by RBI. Financial Intelligence Unit- India, New Delhi imposed a penalty of ` 0.05 crore under Section 12 of the PMLA Act. During the current year the Hong Kong Monetary Authority have taken disciplinary action under Section 21 of AML ordinance and imposed a penalty of HKD 75,43,000. (Previous year, the Authority of Prudential Control and Resolution, Paris, France has imposed a penalty of Euro 3,00,000 on SBI Paris branch). b) Penalty for Bouncing of SGL forms No penalty has been levied on the Bank for bouncing of SGL Forms. 18.7. Disclosure Requirements as per the Accounting Standards a) Employee Benefits i. Defined Benefit Plans 1. Employee’s Pension Plan and Gratuity Plan The following table sets out the status of the Defined Benefit Pension Plan and Gratuity Plan as per the actuarial valuation by the independent Actuary appointed by the Bank:- 170 State Bank of India | Annual Report 2015-16 ` In crore Particulars Pension Plans Gratuity Plans Current Year Previous Year Current Year Previous Year Change in the present value of the defined benefit obligation Opening defined benefit obligation as at 51,616.04 45,236.99 7,182.35 6,838.07 1st April 2015 Current Service Cost 843.64 897.53 128.33 108.88 Interest Cost 4,237.68 4,193.47 589.67 639.36 Past Service Cost (Vested Benefit) - - - - Actuarial losses (gains) 6,212.17 4,537.90 451.06 533.18 Benefits paid (1,511.96) (1,346.63) (1,019.27) (937.14) Direct Payment by Bank (2,246.16) (1,903.22) - - Closing defined benefit obligation as at 59,151.41 51,616.04 7,332.14 7,182.35 31st March 2016 Change in Plan Assets Opening fair value of Plan Assets as at 49,387.97 42,277.01 7,110.25 7,090.59 1st April 2015 Expected Return on Plan Assets 4,296.75 3,678.10 618.59 616.88 Contributions by employer 1,400.54 2,493.62 213.24 233.88 Benefits Paid (1,511.96) (1,346.63) (1,019.27) (937.14) Actuarial Gains / (Loss) on plan Assets (162.93) 2,285.87 (43.04) 106.04 Closing fair value of plan assets as at 53,410.37 49,387.97 6,879.77 7,110.25 31st March 2016 Reconciliation of present value of the obligation and fair value of the plan assets Present Value of Funded obligation as at 59,151.41 51,616.04 7,332.14 7,182.35 31st March 2016 Fair Value of Plan assets as at 31st March 2016 53,410.37 49,387.97 6,879.77 7,110.25 Deficit/(Surplus) 5,741.04 2,228.07 452.37 72.10 Unrecognised Past Service Cost ( Vested) - - - - Closing Balance Unrecognised Transitional Liability Closing - - - - Balance Net Liability/(Asset) 5,741.04 2,228.07 452.37 72.10 Amount Recognised in the Balance Sheet Liabilities 59,151.41 51,616.04 7,332.14 7,182.35 Assets 53,410.37 49,387.97 6,879.77 7,110.25 Net Liability / (Asset) recognised in Balance 5,741.04 2,228.07 452.37 72.10 Sheet State Bank of India | Annual Report 2015-16 171 ` In crore Particulars Pension Plans Gratuity Plans Current Year Previous Year Current Year Previous Year Unrecognised Past Service Cost (Vested) - - - - Closing Balance Unrecognised Transitional Liability Closing - - - - Balance Net Liability/(Asset) 5,741.04 2,228.07 452.37 72.10 Net Cost recognised in the profit and loss account Current Service Cost 843.64 897.53 128.33 108.88 Interest Cost 4,237.68 4,193.47 589.67 639.36 Expected return on plan assets (4,296.75) (3,678.10) (618.59) (616.88) Past Service Cost (Amortised) Recognised - - - - Past Service Cost (Vested Benefit) Recognised - - - - Net actuarial losses (Gain) recognised during 6,375.10 2,252.03 494.10 427.14 the year Total costs of defined benefit plans included in 7,159.67 3,664.93 593.51 558.50 Schedule 16 “Payments to and provisions for employees” Reconciliation of expected return and actual return on Plan Assets Expected Return on Plan Assets 4,296.75 3,678.10 618.59 616.88 Actuarial Gain/ (loss) on Plan Assets (162.93) 2,285.87 (43.04) 106.04 Actual Return on Plan Assets 4,133.82 5,963.97 575.55 722.92 Reconciliation of opening and closing net liability/ (asset) recognised in Balance Sheet Opening Net Liability/ (Asset) as at 1st April 2,228.07 2,959.98 72.10 (252.52) 2015 Expenses as recognised in profit and loss 7,159.67 3,664.93 593.51 558.50 account Paid by Bank Directly (2,246.16) (1,903.22) - - Debited to Other Provision - - - - Recognised in Reserve - - - - Employer’s Contribution (1,400.54) (2,493.62) (213.24) (233.88) Net liability/(Asset) recognised in Balance Sheet 5,741.04 2,228.07 452.37 72.10 172 State Bank of India | Annual Report 2015-16 Investments under Plan Assets of Pension Fund & Gratuity Fund as on 31st March 2016 are as follows: Pension Fund Gratuity Fund Category of Assets % of Plan Assets % of Plan Assets Central Govt. Securities 33.20% 23.13% State Govt. Securities 22.59% 15.35% Debt Securities, Money Market Securities and Bank Deposits 39.51% 29.82% Insurer Managed Funds -- 27.79% Others 4.70% 3.91% Total 100.00% 100.00% Principal actuarial assumptions Particulars Pension Plans Gratuity Plans Current year Previous year Current year Previous year Discount Rate 8.06% 8.21% 7.86% 8.21% Expected Rate of return on Plan Asset 8.06% 8.70% 7.86% 8.70% Salary Escalation 5.00% 5.00% 5.00% 5.00% Attrition Rate 2.00% 2.00% 2.00% 2.00% Mortality Table IALM (2006-08) IALM (2006-08) IALM (2006-08) IALM (2006-08) ULTIMATE ULTIMATE ULTIMATE ULTIMATE Surplus/ Deficit in the Plan Gratuity Plan ` In crore Amount recognised in the Year ended Year ended Year ended Year ended Year ended Balance Sheet 31-03-2012 31-03-2013 31-03-2014 31-03-2015 31-03-2016 Liability at the end of the year 6,462.82 7,050.57 6,838.07 7,182.35 7,332.14 Fair value of Plan Assets at the 5,251.79 6,549.31 7,090.59 7,110.25 6,879.77 end of the year Difference 1,211.03 501.26 (252.52) 72.10 452.37 Unrecognised Past Service Cost 300.00 200.00 - - - Unrecognised Transition Liability - - - - - Amount Recognised in the Balance 911.03 301.26 (252.52) 72.10 452.37 Sheet State Bank of India | Annual Report 2015-16 173 Experience adjustment ` In crore Amount recognised in the Year ended Year ended Year ended Year ended Year ended Balance Sheet 31-03-2012 31-03-2013 31-03-2014 31-03-2015 31-03-2016 On Plan Liability (Gain) /Loss 367.64 459.56 210.19 (24.69) 326.09 On Plan Asset (Loss) /Gain 32.58 62.46 23.87 106.04 (43.09) Surplus/Deficit in the plan Pension Amount recognised in the Year ended Year ended Year ended Year ended Year ended Balance Sheet 31-03-2012 31-03-2013 31-03-2014 31-03-2015 31-03-2016 Liability at the end of the year 36,525.68 39,564.21 45,236.99 51,616.04 59,151.41 Fair value of Plan Assets at the end 27,205.57 35,017.57 42,277.01 49,387.97 53,410.37 of the year Difference 9,320.11 4,546.64 2,959.98 2,228.07 5,741.04 Unrecognised Past Service Cost - - - - - Unrecognised Transition Liability - - - - - Amount Recognised in the Balance 9,320.11 4,546.64 2,959.98 2,228.07 5,741.04 Sheet Experience adjustment On Plan Liability (Gain) /Loss 1,677.80 345.90 7,709.67 1,732.86 5,502.35 On Plan Asset (Loss) /Gain 130.16 419.58 335.40 2,285.87 (162.93) The estimates of future salary growth, factored in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market. Such estimates are very long term and are not based on limited past experience / immediate future. Empirical evidence also suggests that in very long term, consistent high salary growth rates are not possible, which has been relied upon by the auditors. 2. Employees’ Provident Fund Actuarial valuation carried out in respect of interest shortfall in the Provident Fund Trust of the Bank, as per Deterministic Approach shows “Nil” liability, hence no provision is made in F.Y. 2015-16. 174 State Bank of India | Annual Report 2015-16 31) Net Asset not recognised in Balance Sheet 825.632.39 Current Service Cost 1.The following table sets out the status of Provident Fund as per the actuarial valuation by the independent Actuary appointed by the Bank:- ` in crore Particulars Provident Fund Current Year Previous Year Change in the present value of the defined benefit obligation Opening defined benefit obligation as at 1st April 2015 22.32 23.869.72) (1.14 Interest Cost 2.983.42 Expected Return on Plan Assets 2.188.159.31 Net Cost recognised in the profit and loss account Current Service Cost 1.026.09) Interest shortfall reversed .32 23.32 137.498.026.14 provisions for employees” Reconciliation of opening and closing net liability/ (asset) recognised in Balance Sheet Opening Net Liability as at 1st April 2015 .981.82 Reconciliation of present value of the obligation and fair value of the plan assets Present Value of Funded obligation as at 31st March 2016 25.632.985.09 Contributions 3.869.14 Employer’s Contribution (1. - Total costs of defined benefit plans included in Schedule 16 “Payments to and 1.363.70 22.869.72 1.197.22 527.67 661.09 Expected return on plan assets (2.70 22.14 Interest Cost 2.14) Net Liability/(Asset) Recognised In the Balance Sheet .366.026.159.026.82 22. - Expense as above 1.01 - Benefits paid (2.62) (699.869.43) (2.498.43) (2.22) (527.77) Closing defined benefit obligation as at 31st March 2016 25.985.80 Benefits Paid (2.22 527.51 Fair Value of Plan assets as at 31st March 2016 25. - State Bank of India | Annual Report 2015-16 175 .66 Actuarial losses/(gains) 0.632.197.22 527.82 Deficit/(Surplus) (825.72 1.632.62 699.09 Employee Contribution (including VPF) 1.804.632.28 Closing fair value of plan assets as at 31st March 2016 25.363.22 527.615.89 1.498.197.51 21.51 Change in Plan Assets Opening fair value of Plan Assets as at 1st April 2015 23.981.77) Actuarial Gains / (Loss) on plan Assets 126.72 1. 03 plans included in Schedule The Bank has a Defined Contribution Pension Scheme 16 “Payments to and (DCPS) applicable to all categories of officers and provisions for employees” employees joining the Bank on or after August 1.00% Benefits paid (511.41 287.105.Y.079. 2010.03 Employer’s Contribution .756.00% 5.94 135.21% Current Service Cost 230.50 3. During F. Money Market 34.15% ` in crore Securities and Bank Deposits Accumulating Compensated Insurer Managed Funds -- Absences (Privilege Leave) Others 4.129. The Scheme is managed by NPS Trust under the aegis Reconciliation of opening of the Pension Fund Regulatory and Development and closing net liability/ Authority.079.99 1.756.99 1.50 3.94% Particulars Current Year Previous Year Total 100.94 135.375.129.00) Employer 176 State Bank of India | Annual Report 2015-16 . Actuarial (Gain)/ Losses 590.75% 8.00) (428.64 681.55% Debt Securities.49 3.55 Provident Fund and Miscellaneous Provisions Act 1952 and Interest Cost 308.Investments under Plan Assets of Provident Fund as on 31st (a) Accumulating Compensated Absences (Privilege March 2016 are as follows: Leave) Provident Fund The following table sets out the status of Accumulating Category of Assets % of Plan Assets Compensated Absences (Privilege Leave) as per the actuarial valuation by the independent Actuary Central Govt. Expense as above 1.00) (428. Fund has been crediting the profit and loss account interest at the rate of interest as declared under Employees Current Service Cost 230.86% 8.2015-16.105.62 hence treated as a defined benefit plan.51 1st April 2015 crore). the Bank Opening Net Liability as at 3.756.62 Attrition Rate 2. Long Term Employee Benefits (Unfunded Obligation): Benefit paid directly by the (511.75% Interest Cost 308.55 Guaranteed Return 8.50 obligation at 31st March 2016 There is a guaranteed return applicable to liability under SBI Net Cost recognised in the Employees Provident Fund.47 Current year Previous year obligation at 1st April 2015 Discount Rate 7.47 has contributed ` 191.18 crore (Previous Year ` 145. Defined Contribution Plan: Total costs of defined benefit 1.86 ii.00) Mortality Table IALM (2006-08) IALM (2006-08) ULTIMATE ULTIMATE Closing defined benefit 4.86 Salary Escalation 5.00% 2. Securities 40.00% Actuarial losses/(gains) 590. - iii.36% appointed by the Bank:- State Govt. Securities 20.00% Change in the present Principal actuarial assumptions: value of the defined benefit obligation Particulars Provident Fund Opening defined benefit 3. National Securities Depository Limited (asset) recognised in has been appointed as the Central Record Keeping Balance Sheet Agency for the NPS.64 681.41 287. Principal actuarial assumptions: ` in crore Accumulating Compensated Particulars Current year Previous year Absences (Privilege Leave) Discount Rate 7.86% 8.21% Particulars Current Year Previous Year Salary Escalation 5.00% 5.00% Net Liability/(Asset) 4,375.49 3,756.50 Attrition Rate 2.00% 2.00% Recognized In the Balance Mortality Table IALM IALM Sheet (2006-08) (2006-08) Principal actuarial assumptions: ULTIMATE ULTIMATE b) Segment Reporting: Particulars Current year Previous year Discount Rate 7.86% 8.21% 1. Segment Identification Salary Escalation 5.00% 5.00% I. Primary (Business Segment) Attrition Rate 2.00% 2.00% Mortality Table IALM IALM The following are the primary segments of the (2006-08) (2006-08) Bank:- ULTIMATE ULTIMATE - Treasury (b) Other Long Term Employee Benefits - Corporate / Wholesale Banking Amount of ` (-) 7.62 crore (Previous Year ` (-)40.05 - Retail Banking crore) is (written back)/ provided towards Other Long Term Employee Benefits as per the actuarial valuation - Other Banking Business by the independent Actuary appointed by the Bank and The present accounting and information system is included under the head “Payments to and Provisions of the Bank does not support capturing and for Employees” in Profit and Loss Account. extraction of the data in respect of the above segments separately. However, based on the Details of Provisions made for various Other Long Term present internal, organisational and management Employee Benefits during the year: reporting structure and the nature of their risk and ` in crore returns, the data on the primary segments have Sr. Long Term Employee Current Year Previous Year been computed as under: No. Benefits i. Treasury - The Treasury Segment 1 Leave Travel 10.00 (51.00) includes the entire investment portfolio and and Home Travel trading in foreign exchange contracts and Concession derivative contracts. The revenue of the (Encashment/ treasury segment primarily consists of fees Availment) and gains or losses from trading operations 2 Sick Leave - - and interest income on the investment 3 Silver Jubilee Award (7.79) 1.71 portfolio. 4 Resettlement (0.54) 6.22 Expenses on ii. Corporate / Wholesale Banking - The Superannuation Corporate / Wholesale Banking segment 5 Casual Leave - - comprises the lending activities of 6 Retirement Award (9.29) 3.02 Corporate Accounts Group, Mid Corporate Total (7.62) (40.05) Accounts Group and Stressed Assets State Bank of India | Annual Report 2015-16 177 Management Group. These include III. Pricing of Inter-segmental Transfers providing loans and transaction services to corporate and institutional clients and The Retail Banking segment is the primary further include non-treasury operations of resource mobilising unit. The Corporate/ foreign offices. Wholesale Banking and Treasury segments are recipient of funds from Retail Banking. Market iii. Retail Banking - The Retail Banking related Funds Transfer Pricing (MRFTP) is Segment comprises of branches in National followed under which a separate unit called Banking Group, which primarily includes Funding Centre has been created. The Funding Personal Banking activities including Centre notionally buys funds that the business lending activities to corporate customers units raise in the form of deposits or borrowings having banking relations with branches in and notionally sell funds to business units the National Banking Group. This segment engaged in creating assets. also includes agency business and ATMs. IV. Allocation of Expenses, Assets and Liabilities iv. Other Banking business – Segments not classified under (i) to (iii) above are Expenses incurred at Corporate Centre classified under this primary segment. establishments directly attributable either to Corporate / Wholesale and Retail Banking II. Secondary (Geographical Segment) Operations or to Treasury Operations segment, are allocated accordingly. Expenses not directly i) Domestic Operations - Branches/Offices attributable are allocated on the basis of the ratio having operations in India of number of employees in each segment/ratio of ii) Foreign Operations - Branches/Offices directly attributable expenses. having operations outside India and The Bank has certain common assets and offshore Banking units having operations in liabilities, which cannot be attributed to India any segment, and the same are treated as unallocated. 178 State Bank of India | Annual Report 2015-16 2. Segment Information Part A: Primary (Business Segments) ` In crore Business Segment Treasury Corporate / Retail Other Total Wholesale Banking Banking Banking Operations Revenue # 49,572.24 63,983.80 76,531.65 - 1,90,087.69 (41,095.95) (61,445.90) (71,248.38) (-) (1,73,790.23) Unallocated Revenue # 1,755.98 (1,182.73) Total Revenue 1,91,843.67 (1,74,972.96) Result # 8,246.77 -11,466.70 18,967.10 - 15,747.17 (7,554.38) (-308.47) (14,758.80) (-) (22,004.71) Unallocated Income(+) / Expenses( -) Net # -1,973.12 (-2690.75) Profit before tax # 13,774.05 (19,313.96) Tax # 3,823.40 (6,212.39) Extraordinary Profit # Nil Nil Net Profit # 9,950.65 (13,101.57) Other Information: Segment Assets * 5,07,261.72 8,74,603.31 8,57,750.16 - 22,39,615.19 (4,99,202.87) (7,83,263.69) (750,148.40) (-) (20,32,614.96) Unallocated Assets * 19,447.84 (15,464.84) Total Assets* 22,59,063.03 (20,48,079.80) Segment Liabilities * 2,92,776.35 7,96,500.56 965,368.29 - 20,54,645.20 (3,08,334.71) (6,88,172.53) (8,68,722.52) (-) (18,65,229.76) Unallocated Liabilities* 60,143.40 (54,411.81) Total Liabilities * 21,14,788.60 (19,19,641.57) (Figures in brackets are for previous year) Part B: Secondary (Geographical Segments) ` In crore Domestic Foreign Total Current Year Previous Year Current Year Previous Year Current Year Previous Year Revenue # 1,78,322.68 1,64,304.43 11,765.01 9,485.80 1,90,087.69 1,73,790.23 Net Profit# 5,936.62 9,972.10 4,014.03 3,129.47 9,950.65 13,101.57 Assets * 19,30,789.77 17,47,311.56 3,28,273.26 3,00,768.24 22,59,063.03 20,48,079.80 Liabilities* 17,86,515.34 16,18,873.33 3,28,273.26 3,00,768.24 21,14,788.60 19,19,641.57 # For the year ended 31st March 2016 * As at 31st March 2016 State Bank of India | Annual Report 2015-16 179 c) Related Party Disclosures: 3. Macquarie SBI Infrastructure Management 1. Related Parties Pte. Ltd. A. SUBSIDIARIES 4. Macquarie SBI Infrastructure Trustee Ltd. i. DOMESTIC BANKING SUBSIDIARIES 5. SBI Macquarie Infrastructure Management 1. State Bank of Bikaner & Jaipur Pvt. Ltd. 2. State Bank of Hyderabad 6. SBI Macquarie Infrastructure Trustee Pvt. 3. State Bank of Mysore Ltd. 4. State Bank of Patiala 7. Oman India Joint Investment Fund – 5. State Bank of Travancore Management Company Pvt. Ltd. ii. FOREIGN BANKING SUBSIDIARIES 8. Oman India Joint Investment Fund – 1. SBI (Mauritius) Ltd. Trustee Company Pvt. Ltd. 2. SBI Canada Bank C. ASSOCIATES 3. State Bank of India (California) i. Regional Rural Banks 4. Commercial Indo Bank Llc , Moscow 1. Andhra Pradesh Grameena Vikas Bank 5. PT Bank SBI Indonesia 2. Arunachal Pradesh Rural Bank 6. Nepal SBI Bank Ltd. 3. Chhattisgarh Rajya Gramin Bank 7. Bank SBI Botswana Limited 4. Ellaquai Dehati Bank iii. DOMESTIC NON-BANKING SUBSIDIARIES 5. Meghalaya Rural Bank 1. SBI Capital Markets Ltd. 6. Langpi Dehangi Rural Bank 2. SBI DFHI Ltd. 7. Madhyanchal Gramin Bank 3. SBI Mutual Fund Trustee Company Pvt. Ltd. 8. Mizoram Rural Bank 4. SBICAP Securities Ltd. 9. Nagaland Rural Bank 5. SBICAP Ventures Ltd. 10. Purvanchal Bank 6. SBICAP Trustee Company Ltd. 11. Saurashtra Gramin Bank 7. SBI Cards and Payment Services Pvt. Ltd. 12. Utkal Grameen Bank 8. SBI Fund Management Pvt. Ltd. 13. Uttarakhand Gramin Bank 9. SBI Life Insurance Company Ltd. 14. Vananchal Gramin Bank 10. SBI Pension Funds Pvt. Ltd. 15. Rajasthan Marudhara Gramin Bank 11. SBI – SG Global Securities Services Pvt. Ltd. 16. Telangana Grameena Bank 12. SBI Global Factors Ltd. 17. Kaveri Grameena Bank 13. SBI General Insurance Company Ltd. 18. Malwa Gramin Bank 14. SBI Payment Services Pvt. Ltd. ii. Others 15. SBI Foundation 1. SBI Home Finance Ltd.(under liquidation) iv. FOREIGN NON-BANKING SUBSIDIARIES 2. The Clearing Corporation of India Ltd. 1. SBICAP (UK) Ltd. 3. Bank of Bhutan Ltd. 2. SBI Funds Management (International) D. Key Management Personnel of the Bank Pvt. Ltd. 1. Smt. Arundhati Bhattacharya, Chairman 3. SBICAP (Singapore) Ltd. 2. Shri P. Pradeep Kumar, Managing 4. State Bank of India Servicos Limitada Director (Corporate Banking Group) (upto B. JOINTLY CONTROLLED ENTITIES 31.10.2015) 1. GE Capital Business Process Management 3. Shri V.G. Kannan, Managing Director Services Pvt. Ltd (Associates & Subsidiaries) 2. C-Edge Technologies Ltd. 180 State Bank of India | Annual Report 2015-16 4. Shri B. Sriram, Managing Director 2. Parties with whom transactions were entered (National Banking Group) (upto 01.11.2015) into during the year Managing Director (Corporate Banking No disclosure is required in respect of related Group) (from 02.11.2015) parties, which are “State-controlled Enterprises” 5. Shri Rajnish Kumar, Managing Director as per paragraph 9 of Accounting Standard (AS) (Compliance & Risk) (from 26.05.2015 18. Further, in terms of paragraph 5 of AS 18, to 01.11.2015) transactions in the nature of Banker-Customer Managing Director (National Banking relationship have not been disclosed including Group) (from 02.11.2015) those with Key Management Personnel and 6. Shri P. K. Gupta, Managing Director relatives of Key Management Personnel. (Compliance & Risk) (from 02.11.2015) 3. Transactions and Balances ` In crore Particulars Associates/ Key Total Joint Ventures Management Personnel & their relatives A. Outstanding as at 31st March Borrowings Nil Nil Nil (Nil) (Nil) (Nil) Deposit 39.07 Nil 39.07 (35.80) (Nil) (35.80) Other Liabilities Nil Nil Nil (0.02) (Nil) (0.02) Balance with Banks Nil Nil Nil (2.12) (Nil) (2.12) Advance Nil Nil Nil (Nil) (Nil) (Nil) Investment 41.55 Nil 41.55 (41.55) (Nil) (41.55) Non-fund commitments (LCs/BGs) Nil Nil Nil (Nil) (Nil) (Nil) B. Maximum outstanding during the year Borrowings Nil Nil Nil (Nil) (Nil) (Nil) Deposit 51.95 Nil 51.95 (57.06) (Nil) (57.06) State Bank of India | Annual Report 2015-16 181 55 Nil 41.32 Nil 27.82) Other Income Nil Nil Nil (Nil) (Nil) (Nil) Other expenditure Nil Nil Nil (3.12 (5.09) (Nil) (3.32 (33.78) Income earned by way of dividend 27.02) (Nil) (0.94) (Nil) (5.86 Nil 1.94) Advance Nil Nil Nil (Nil) (Nil) (Nil) Investment 41. During the year ended 31st March Interest Income Nil Nil Nil (Nil) (Nil) (Nil) Interest expenditure 1.55) (Nil) (41.03) Figures in brackets are for Previous Year There are no materially significant related party transactions during the year. 182 State Bank of India | Annual Report 2015-16 .03) (1.78) (Nil) (2.09) Profit/(loss) on sale of land/building and other assets Nil Nil Nil (Nil) (Nil) (Nil) Management contracts Nil 1.55) Non-fund commitments (LCs/BGs) Nil Nil Nil (Nil) (Nil) (Nil) C.02 Nil 0.86 (2.58 1.02) Balance with Banks 2.12 Nil 2.82) (Nil) (33.58 (Nil) (1.55 (41.02 (0. ` In crore Particulars Associates/ Key Total Joint Ventures Management Personnel & their relatives Other Liabilities 0. 55 31st March 31st March share (`) 2016 2015 Diluted earnings per 12.98 crore) included under State Bank of India | Annual Report 2015-16 183 .920 used in computing basic and staff residences.60.27crore (Previous Year share in accordance with Accounting Standard 20 .30.79 Nominal value per 1 1 than 5 years share (`) Later than 5 years 311.920 and Deferred Tax Assets (DTA) of `472.96 crore (Previous Year `2.98 17. `6. b.01 consideration the amount received for equity shares allotted on 1st April 2016.719.57.65 13. The “Earnings per Share”. which comprises of DTL of the year `2.70.68.950. `245.627 746.101.17 *Diluted earnings per share is computed taking into Total 1.52 crore the end of the year (Previous Year `365.27.47 crore has been debited Number of Equity to Profit and Loss Account (Previous Year Shares outstanding at `477.09 crore) i. The Bank has a net Deferred Tax Liability (DTL) Number of Equity of `2.55.30. “Basic earnings” per share is Current Tax in India has been calculated in computed by dividing net profit after tax by the weighted accordance with the provisions of Income Tax average number of equity shares outstanding during Act 1961 after taking appropriate relief for taxes the year.920 746.57 Net profit (` In crore ) Particulars As at As at Basic earnings per 12.57. Weighted average a.d) Liability for Operating Leases Particulars Current Year Previous Year Premises taken on operating lease are given below: Weighted average number of equity shares Operating leases primarily comprise office premises 766.11 crore) on account of current tax.70 191.627 746.003.44 crore (Previous Year net DTL of Shares issued during 29.30.044.110. Liability for Premises taken on Non-Cancellable number of shares used 766. Deferred Tax :- Basic and diluted During the year.57. Particulars Current Year Previous Year ii.56 crore Credited) on account of deferred 746. Amount of lease payments recognised in the P&L Account for operating leases is ` 2.212.27 crore f) Accounting for Taxes on Income (` 1.14 crore).987.46.17 178.754.78 674.77.57.684.98 17. which are renewable at the option earnings per share of the Bank.042 746.55.12 crore) Number of Equity included under ‘Other Liabilities and Provisions’ Shares outstanding at 776.05 share (`) Later than 1 year and not later 1165.122 0 `1.353.06.68.199 operating lease are given below in computing diluted earnings per share ` In crore 9.55* Not later than 1 year 277. year iii. Current Tax :- e) Earnings per Share During the year the Bank has debited to Profit The Bank reports basic and diluted earnings per equity & Loss Account `4.659.65 1. paid in foreign jurisdictions.920 the beginning of the tax.30. 52 365. Ltd.381.01 India 50% (0.* 0. Ltd.63 Depreciation on Fixed Assets 174.594.44) 2 C .605. 2. 451.86 3.30) 8 Oman India Joint Investment Fund – Trustee Company Pvt.476.25 Singapore 45% (2. 4.90) 3 Maquarie SBI Infrastructure Management Pte.61 155.81 2016 2015 Deferred Tax Liabilities Deferred Tax Assets (DTA) (DTL) Provision for Defined Benefit .57 India 45% (18. (Figures in brackets relate to previous year) 184 State Bank of India | Annual Report 2015-16 .14) Provision for Other Assets 238..831. Ltd. Name of the Company Amount Country of Holding % No ` In crore Residence 1 GE Capital Business Process Management Services Pvt. 18.768.325.03 India 45% (0. against which the Company has made 100% provision.90 India 49% (4.286. The major components of DTA On Foreign Currency 262.79 - On account of Foreign Offices 472.57) 5 SBI Macquarie Infrastructure Trustee Pvt.93 Bermuda 45% (0.27 - and DTL is given below: Translation Reserve ` In crore Amortisation of Discount 11. 0.781.44) (1. 0.95 Prudential Norms Net Deferred Tax Assets/ (2.44 India 40% (9.30 5. Ltd.78 1.79 Standard Assets/Standard Assets over the specified RBI Total 6. Ltd.132. Ltd. Ltd.33 employee Benefits 36(1)(viii) of Income Tax Act Provision/ Additional Provision 1.55 Special Reserve created u/s 2.22 Schemes on account of Wage Interest accrued but not due 3.39 3.43 crore (Previous Year ` 38.78) 7 Oman India Joint Investment Fund – Management Company Pvt.941. 9. ‘Other Assets’.90 1.29 . 2.65 1961 on specified Restructured On account of Foreign Offices 1.28 crore) representing Bank’s interest in the following jointly controlled entities Sr.Edge Technologies Ltd.212.25) 4 SBI Macquarie Infrastructure Management Pvt.987. (Liabilities) g) Investments in Jointly Controlled Entities Investments include ` 38.791.98 Particulars As at As at 31st March 31st March Total 4.03) 6 Macquarie SBI Infrastructure Trustee Ltd.21 1.40 2.01) * Indirect holding through Maquarie SBI Infra Management Pte.61 Revision on Securities Provision for long term 1.30 India 50% (2. 42 102.02 35.44 243.95 244.47 State Bank of India | Annual Report 2015-16 185 .04 Total 335. liabilities.22 Capital Commitments Other Contingent Liabilities 6.51 Income Interest earned 6.69 Advances .31 8.14 Deposits .75 6.13 Expenditure Interest expended 0.75 Other Assets 126.50 96.22 Assets Cash and Balances with RBI 0.96 1.30 223. contingent liabilities and commitments related to the Bank’s interests in jointly controlled entities are disclosed as under: ` In crore Particulars As at As at 31st March 2016 31st March 2015 Liabilities Capital & Reserves 174.57 159.23 Operating expenses 260.04 3. - Borrowings 5.66 Profit 51. the aggregate amount of the assets.00 9.15 Other Liabilities & Provisions 101.18 18.73 Total 283. income.42 Total 280.As required by AS 27.01 - Balances with Banks and money at call and short notice 114.38 285.09 Other income 328. expenses.95 244.70 Provisions & contingencies 22.93 Total 280.69 47. - Fixed Assets 31.13 291.36 Investments 9.07 76. terms of contractual obligations. forward rate agreements. the Bank generally enters into off-setting transactions in the interbank market. are typically amounts used as a benchmark for the calculation of the interest component of the contracts. This item represents amounts remaining unpaid towards liability for partly paid investments. the amount being called up. 2 Liability on partly paid. swaps are commitments to exchange cash flows by way of interest/principal in one currency against another. The Bank does not acknowledged as not expect the outcome of these proceedings to have a material adverse effect on the Bank’s debts financial conditions. 5 Other items for which The Bank enters into currency options. Particulars Brief Description No. The Contingent Liabilities mentioned above are dependent upon the outcome of Court/ arbitration/out of Court settlements. With respect to the transactions entered into with its customers. Funds 3 Liability on account of The Bank enters into foreign exchange contracts in its normal course of business to exchange outstanding forward currencies at a pre-fixed price at a future date. Guarantees generally represent irrevocable assurances that the endorsements and other Bank will make payment in the event of the customer failing to fulfil its financial or performance obligations obligations. disposal of appeals. while the net market risk is lower. devolvement and raising of demand by concerned parties. Further. the customers of the Bank. Interest rate swaps are commitments to exchange fixed and floating interest rate cash flows. and hence a large value of gross notional principal of the portfolio. results of operations or cash flows. The notional amounts are recorded as Contingent Liabilities. 1 Claims against the Bank The Bank is a party to various proceedings in the normal course of business. 4 Guarantees given on As a part of its commercial Banking activities. Currency liable.h) Impairment of Assets In the opinion of the Bank’s Management. i) Description of Contingent Liabilities (AS-29) Sr. The Bank is also a party to various taxation matters in respect of which appeals are pending. Documentary credits enhance the credit standing of acceptances. the Bank issues documentary credits and behalf of constituents. This results in generation of a higher number of outstanding transactions. these also include estimated amount of contracts remaining to be executed on capital account and not provided for. 186 State Bank of India | Annual Report 2015-16 . up investments/ Venture This also includes undrawn commitments for Venture Capital Funds. Bank’s Liability under Depositors Education and Awareness Fund A/c and other sundry contingent liabilities. letter of comforts issued by the Bank on behalf of Associates & Subsidiaries. there is no indication of impairment to the assets during the year to which Accounting Standard 28 – “Impairment of Assets” applies. as the case may be. guarantees on behalf of its customers. based on predetermined rates. Forward exchange contracts are commitments exchange contracts to buy or sell foreign currency at a future date at the contracted rate. The notional amounts that are recorded as Contingent Liabilities. currency swaps and interest the Bank is contingently rate swaps with inter-Bank participants on its own account and for customers. 37 No.149.70 No.34.307. Awards passed by the Banking Ombudsman Provision on Non-Performing 29.14 25. Closing balance 401.00 -382. of complaints redressed 12.00 No. of unimplemented Awards . of complaints received 12. Cyclical Buffer B. Floating Provisions Liabilities ` In crore ` In crore Particulars Current Year Previous Year Particulars Current Year Previous Year Opening Balance 25.559 -Write Back of Income Tax -425.27 6.435. Status of complaints 18.003.11 during the year -Deferred Tax 245.157.00 day.59 Draw down during the year .14 Opening balance 443.16 during the year -Other Tax .00 26.63 802. 10. of Awards passed by the 16 39 Banking Ombudsman during Other Provisions 192.66 Closing Balance 25. Withdrawal from Reserves Unused amount reversed 227. - Amount utilised during the 6.811 16. of Awards implemented 31 33 during the year No.413 the beginning of the year Provision for Taxation No.250 16.58 327.47 -477.58 4.8. of complaints pending at 30.95 the year Total 33.66 during the year During the year.14 25. - Additions during the year 190. 15 at the end of the year State Bank of India | Annual Report 2015-16 187 .j) Movement of provisions against Contingent 2.435.10 443.65 No.487.50 469. Customer complaints 1.34 -39.77 17.896 21. of unimplemented Awards 15 9 Assets at the beginning of the year Provision on Standard Assets 2.55 2.24.896 the end of the year Provision for Depreciation on 149.56 -590.335 30.38 63.37.747.15 26. Provisions and Contingencies recognised in Profit and Loss Account Particulars As at As at 31st March 31st March ` In crore 2016 2015 Particulars Current Year Previous Year No.41 Assets Particulars Current Year Previous Year Provision on Restructured -1.042 -Current Tax 4.90 206.22. Additional Disclosures A.56 No.719. of complaints pending at 15.07 Investments Does not include complaints redressed within one working Withdrawal from Counter -1.880.31 Addition during the year . no withdrawal has been made from reserves.14 year 3. 86 ` In crore Ltd. Advances Exposures & under the Micro. Small & Medium Enterprises NPAs (computed as per directions of RBI) Development Act.21 Percentage of Exposures 14.45.51. Small Particulars Current Year Previous Year & Medium Enterprises.13 largest borrowers/customers Tokio Marine.34.88% TOTAL 464.01.51 NPA accounts 188 State Bank of India | Annual Report 2015-16 . Ltd. Provisioning Coverage Ratio (PCR): b) Concentration of Advances The Provisioning to Gross Non-Performing Assets ratio ` In crore of the Bank as on 31st March 2016 is 60. Particulars Current Year Previous Year Manu Life Financial Limited 1. 379.117.51% 15. Payment to Micro.00 344.57% 6.69 % (Previous Year 69. Total Deposits of twenty 1.57 and NTUC Total Exposure to twenty 3.152.16 crore).512. Small & Medium Enterprises 9.839.25 62. Concentration of Deposits.13.863.16 SBI General Insurance Co.41% on behalf of its subsidiaries as on 31st March 2016.47 2. ACE 0.13%). Particulars Current Year Previous Year Total Advances to twenty 2.08 3.099.46% ` In crore twenty largest borrowers to Total Advances of the Bank Name of Company Current Year Previous Year c) Concentration of Exposures SBI Life Insurance Co.83 8.94 281.55 1.783. 2006 a) Concentration of Deposits As per the information available with the Bank.78 1. Fees/remuneration received in respect of the largest borrowers bancassurance business Percentage of Advances to 15. Total Deposits of the Bank 7.5.93% 15. Letter of Comfort issued for Subsidiaries largest depositors The Bank has issued no letters of comfort outstanding Percentage of Deposits of 6.80 to twenty largest barrowers/ customers to Total Exposure of the Bank on borrowers/ customers d) Concentration of NPAs ` In crore Particulars Current Year Previous Year Total Exposure to top four 26.65 0.06. there has been no reported cases of delayed payments of the ` In crore principal amount or interest due thereon to Micro.16 0.22 6. 82. twenty largest depositors to (Previous Year: ` 715.148. 80 1.20 31.06 2 Industry (Micro & Small.72 67.78 1.455.28 4 Personal Loans 2.725.35.674.705.839.98 2 Industry (Micro & Small.94.38 4.94 8.602.41 1.458.423.903.34 4.94 6.74 9.90.75 9.033.024.216.567.33 Sub-total (A) 3.699.32 1.73 65.765.37 6.519.352.72 7.39 10.89 24.40.93 0.519.365.60 Sub-total (B) 11.28.40 26.206.59 1.15 90.341.85 B Non Priority Sector 1 Agriculture & allied activities 5.77 4.422. 7.11 7.499.24 6.20 0.152.29 1.10.68 Medium and Large) 3 Services 1. Outstanding Gross NPAs Percentage Outstanding Gross NPAs Percentage Total of Gross Total of Gross Advances NPAs Advances NPAs to Total to Total Advances in Advances in that sector that sector A Priority Sector 1 Agriculture & allied activities 1.42 11.80 1.485.69.30 12.32 6.087. Particulars Current Year Previous Year No.273.625.172.70 56.768.66.62 2.25 11. Sector Current Year Previous year No.618.86 36.00.644.222.26 3.84 20.819.05 199.51.819.785. Sector–wise NPAs ` In crore Sr.747. Overseas Assets.26.91 3.50 13.50 4 Personal Loans 89.93 73.56 7.22.65 3 Total Revenue 11.82 98.146.13 10.144.699.202.218.87 9.32 496.931.014.93.51 1.13 2. 91.79 1.32 10.02 4.152.12.950.14 2.36 5.79 Medium and Large) 3 Services 32.24 2 Total NPAs (Gross) 7.80 State Bank of India | Annual Report 2015-16 189 .51 C Total (A+B) 15.09. NPAs and Revenue ` In crore Sr.39.355. 1 Total Assets 3.57 1.75.80 5.13 2.102.02 3.01 9.51 1.80 6. Others ` In crore ii. of the SPVs Nil Nil 1. Amount of exposures protection bought to securitisation / sold during the transactions other than year MMR a) Off-balance sheet a) of which Nil Nil Nil Nil exposures transactions i. Particulars Current Year Previous Year bank As As As As 3. of balance sheet transactions a) Off-balance sheet Nil Nil during the year exposures a) of which Nil Nil Nil Nil i. No. Others 2. Credit Default Swaps 2. Exposures Nil Nil Sr. Others that are/may b) On-balance sheet Nil Nil be physically exposures settled i. Total amount of Protection Protection Protection Protection exposures retained by Buyer Seller Buyer Seller the bank to comply with MMR as on the date of 1. Others Bank for securitisation transactions 14. Particulars Number Amount Name of the SPV Sponsored No.12. First Loss transactions ii. Particulars Number Amount to third party No. First Loss settled 2. Others b) cash settled Nil Nil Nil Nil ii. Total amount of Nil Nil securitised assets as ` In crore per the books of the SPVs sponsored by the Sr. Others 190 State Bank of India | Annual Report 2015-16 . securitisations 1. No. Exposures to own Nil Nil which are/ may securitisations be physically 1. First Loss 2. Disclosure relating to Securitisation 1. Exposures to own securitisations Nil Nil 13. Amount of 4. Exposures Nil Nil to third party securitisations 1. No. First Loss b) cash settled Nil Nil Nil Nil ii. Domestic Overseas b) On-balance sheet Current Year NIL NIL exposures Previous Year NIL NIL i. First Loss 2. First Loss sponsored by the 2. Off-balance Sheet SPVs sponsored ` In crore Sr. of Closing balance of amounts 880.251.85/21. Unhedged Foreign Currency Exposure protection Nil Nil Nil Nil 6.71 CDS transactions group exposures to total during year-to. Net income/ profit ii Total amount of top-20 9.14 Nil deliverable transferred to DEAF obligation) Add : Amounts transferred to 123.92 757. Intra-Group Exposures: transactions b) pertaining Nil Nil Nil Nil ` In crore to previous Particulars Current Year Previous Year year(s)’ i Total amount of intra. Unclaimed Liabilities transferred to Depositor of the value Education and Awareness Fund (DEAF) of assets realised) ` In crore • received (net Nil Nil Nil Nil Particulars Current Year Previous Year of value of Opening balance of amounts 757.06. of outstanding No. DBOD. Particulars Current Year Previous Year Sr.442. of a) No. 9.39 0. Outstanding DEAF during the year transactions as on Less : Amounts reimbursed by Nil Nil March 31: DEAF towards claims a) No. of Nil Nil Nil Nil transactions Transactions where credit event (as on 1st payment was April) received / made b) Amount of Nil Nil Nil Nil during the year protection (as a) pertaining to Nil Nil Nil Nil on 1st April ) current year’s 15. No.14 5.79 (expenditure/ intra-group exposures loss) in respect of iii Percentage of intra.34 15. Particulars Current Year Previous Year As As As As As As As As Protection Protection Protection Protection Protection Protection Protection Protection Buyer Seller Buyer Seller Buyer Seller Buyer Seller 3.200/2013-14 dated January 15. No. transactions 2014 on ‘Capital and Provisioning Requirements during the year: for Exposure to entites has provided for Unhedged State Bank of India | Annual Report 2015-16 191 .BP. 0.34 15.79 transactions group exposures 4. exposure of the bank on date: borrowers / customers iv Details of breach of limits Nil Nil a) premium paid / Nil Nil Nil Nil on intra-group exposures received and regulatory action b) Credit event thereon payments: • made (net Nil Nil Nil Nil 16. Highest level The Bank in accordance with RBI Circular No.BC.442.251. No.14 Transactions Nil Nil Nil Nil transferred to DEAF b) Amount of 17.Sr.78 757. 72. viz. a.2015-16 Q4 . Level 1 and Level 2 assets.180 2.66. 2A assets are with a minimum 15% haircut and 18. Liquidity Coverage Ratio (LCR): Level 2B assets.444 29 5 Additional requirements.391 8.26. significantly severe liquidity stress scenario.970 2.42.881 collateral requirements (ii) Outflows related to loss of funding on debt products 0 0 0 0 192 State Bank of India | Annual Report 2015-16 .649 3 Unsecured wholesale funding. 1 assets are with 0% haircut while in Level 2. Total expected cash inflows are calculated by multiplying the outstanding balances of various Stock of high quality liquid LCR has been assets (HQLAs) categories of contractual receivables by the rates defined as: Total net cash outflows over the at which they are expected to flow in up to an next 30 calendar days aggregate cap of 75% of total expected cash outflows.12.580 1. Level `408.44 crore). An amount of ` 161.658 11. of which: (i) Stable deposits 1.77.08 crore) was held as on can be readily encashed or used as collateral to 31st March 2016 for Currency Induced Credit Risk obtain cash in a range of stress scenarios. Foreign Currency Exposure’. There and Capital allocated for Currency Induced Credit are two categories of assets included in the stock Risk amounting to ` 237.39.333 70. with a minimum 50% haircut. Standalone LCR The total net cash outflows is the total expected cash outflows minus total expected cash Liquidity Coverage Ratio (LCR) standard has inflows for the subsequent 30 calendar days.2015-16 Total Total Total Total Weighted Unweighted Weighted Unweighted Value (Avg) Value (Avg) Value(Avg) Value (Avg) HIGH QUALITY LIQUID ASSETS (HQLA) 1 Total High Quality Liquid Assets(HQLA) 2.50.631 7.06.927 CASH OUTFLOWS 2 Retail Deposits and deposits from small business customers.21 Liquid assets comprise of high quality assets that crore (Previous Year ` 293.61.132 1.491 1.333 76.702 2.27.62 crore ( Previous Year of HQLAs.129 13 59.113 3.461 (iii) Unsecured debt 0 0 0 0 4 Secured wholesale funding 26.881 76. Quantitative Disclosure: ` In crore LCR COMPONENTS FY . of which: (i) Operational deposits(all counterparties) 565 141 0 0 (ii) Non-operational deposits (all counterparties) 3.27. been introduced with the objective that a bank Total expected cash outflows are calculated by maintains an adequate level of unencumbered multiplying the outstanding balances of various High Quality Liquid Assets (HQLAs) that can be categories or types of liabilities and off-balance converted into cash to meet its liquidity needs sheet commitments by the rates at which they for a 30 calendar day time horizon under a are expected to run off or be drawn down.070 (ii) Less Stable Deposits 10. of which (i) Outflows related to derivative exposures and other 70. 2015 had stipulated the implementation of LCR at a of the Balance Sheet of the Bank.36% based on average of last three months (Q4 FY15-16). During the last quarter USD was the The RBI through a supplementary guideline issued on March significant Foreign Currency which constituted more than 5% 31. 2016.39.283 14.656 1. The Domestic and Banking and seven Overseas Banking Subsidiaries. Accordingly.85. and 0% risk weighted Marketable securities total funding sources.188 41. Both the positions are above the minimum 70% prescribed Further. the entire Financial Year 2015-16 to the Bank’s Board periodically. account of growth of Balance Sheet size. Dynamic Liquidity Reports are also being prepared by RBI (60% upto December 2015 and 70% from 1st January periodically to forecast liquidity requirements and to strategize 2016). and such funding sources are well issued/guaranteed by foreign sovereigns.65.56.289 1.731 29.2015-16 Q4 .967 3.283 7 Other contingent funding obligations 3.08. of twelve months (FY15-16) and 76.50.52.85. Derivative exposures b. the quarter ended March 2016 reporting.989 3.996 1.325 31. Retail deposits constitute major portion of excess CRR.2015-16 Total Total Total Total Weighted Unweighted Weighted Unweighted Value (Avg) Value (Avg) Value(Avg) Value (Avg) (iii) Credit and liquidity facilities 1. All the major decisions of ALCO are being reported a.28. of which Level 1 assets form of SLR investments over and above the mandatory constituted on an average 92% of total HQLA and cash. Reverse repos) 3.624 17.950 32. Management is of the view that the Bank has securities consisting of 88% of Total Level 1 Assets. State Bank of India | Annual Report 2015-16 193 .873 12 TOTAL CASH INFLOWS 1. Group has been computing the Consolidated LCR. diversified and is consistent with the operational requirements of the Bank.41. SBI 82% for Q4 FY15-16. requirements.151 23.445 14.927 crore.927 14 TOTAL NET CASH OUTFLOWS 3.437 13 TOTAL HQLA 2.112 4. Bank prepares daily Structural Liquidity statements to assess the liquidity needs of the Bank on an ongoing basis.18. The average HQLA for the The Bank has been maintaining HQLA mainly in the Q4 FY15-16 was ` 250.970 2. Average USD LCR was consolidated level from January 1. Consolidated LCR are considered insignificant due to almost matching inflows and outflows position.23. Liquidity Management in the Bank is driven by the ALM The entities covered in the Group LCR are six Domestic Policy.23% based on average accordingly.626 15 LIQUIDITY COVERAGE RATIO (%) 75.83.801 6 Other contractual funding obligations 12.184 1. The ALCO has been the un-weighted and weighted value of LCR components for empowered by the Bank’s Board to formulate the Bank’s the State Bank of India including its Foreign Branches.938 1.76. Bank’s LCR comes out to 75.327 2.17. The net sufficient liquidity cover to meet its likely future short term cash outflows position has gone up in the Q4 FY15-16 on requirements.23% 76.68.918 1.36% The above LCR disclosure template shows the average of Management Committee (ALCO).85.34.189 15.063 CASH INFLOWS 9 Secured lending (eg. State Bank of Bikaner and Jaipur. approved by the Bank’s Board.287 26.564 11 Other cash inflows 39. In addition to monthly LCR b.889 8 TOTAL CASH OUTFLOWS 22.324 0 312 0 10 Inflows from fully performing exposures 1. ` In crore LCR COMPONENTS FY .49.71.445 12. These International Treasuries are reporting to the Asset Liability are State Bank of India.774 4. The funding strategies to ensure that the funding sources are well averages are computed based on the month-end values for. Government diversified. 540 1.42.25.87. SBI Canada Bank.440 331 10 Inflows from fully performing exposures 1.21.57.53. of which: (i) Operational deposits(all counterparties) 4.21% as on 31st March 2016 based on average of three months as under: ` In crore LCR COMPONENTS Total Unweighted Total Weighted Value(Average) Value(Average) HIGH QUALITY LIQUID ASSETS(HQLA) 1 Total High Quality Liquid Assets(HQLA) 3.154 8 TOTAL CASH OUTFLOWS 30.415 22.195 11 Other cash inflows 55.258 12 TOTAL CASH INFLOWS 2. State Bank of India (California) Ltd.004 1.768 5.420 (ii) Outflows related to loss of funding on debt products 0 0 (iii) Credit and liquidity facilities 2.395 CASH INFLOWS 9 Secured lending(eg.420 99. State Bank of Mysore.18.127 (ii) Non-operational deposits(all counterparties) 494.611 15 LIQUIDITY COVERAGE RATIO (%) 77. Reverse repos) 1. Nepal SBI Bank Ltd.21% 194 State Bank of India | Annual Report 2015-16 . Moscow.41. Bank SBI Botswana Ltd.777 6 Other contractual funding obligations 22.134 (ii) Less Stable Deposits 14.872 5 Additional requirements.85.State Bank of Hyderabad.19.21.560 6. SBI Group LCR comes out to 77.21. State Bank of India (Mauritius) Ltd.784 13 TOTAL HQLA 3.25..505 (iii) Unsecured debt 0 0 4 Secured wholesale funding 66.671 17.991 3 Unsecured wholesale funding.42.061 1. State Bank of Patiala.539 14 TOTAL NET CASH OUTFLOWS 4.670 12.99.503 42.539 CASH OUTFLOWS 2 Retail Deposits and deposits from small business customers.122 2.415 7 Other contingent funding obligations 4. Commercial Indo Bank LLC. of which: (i) Stable deposits 2.045 33.909 1. PT Bank SBI Indonesia. of which (i) Outflows related to derivative exposures and other collateral requirements 99. State Bank of Travancore. 04. Asset Quality Review (AQR) form of SLR investments over and above the mandatory requirements. State Bank of India | Annual Report 2015-16 195 . Other income includes ` 2. estimated useful life of a few Companies during the year amounting to ` 461.04. DBR. the Bank has made establishments are being reconciled on an ongoing a provision of 7. 21. 2016 is offices to India and restatement of capital funds at ` 1. previous year’s figures have not approval of the Board. wherever necessary. The Group has been maintaining HQLA mainly in the 22. exchange gain on repatriation of funds from foreign 2016. to conform to current has utilized the CCPB of ` 1149 crore (previous year year classification. The Circular DBOD. investment in Rural Infrastructure and Development BC. 2015 RBI vide Circular No. networking equipment were changed . historical costs at foreign offices.79/21. 2014.BP. Depreciation on Fixed Assets Shortfall on account of sale of assets to Reconstruction During the current year.79 crore not material. In cases where disclosures have ` 382 crore) for making specific provision for NPAs.BC. In accordance with RBI circular dated July 16. Inter Office Accounts 23. Counter Cyclical Provisioning Buffer (CCPB) 26.033. cash dispensing machines. computer amortized over a period of two years in terms of RBI software. The Bank has accordingly implemented the RBI directions. Management is of the view that to reclassify/make additional provision in respect of the Bank has sufficient liquidity cover to meet its likely certain advance accounts over two quarters ending future short term requirements. as a part of Asset Quality Review of total funding sources. Consequently.Other Assets from Schedule 8 – Provisioning Buffer’ has allowed the banks. 19. (previous year ` 623. the Bank reclassified. for making specific provisions for Non. controlling offices. investments” in Schedule 13 – Interest Earned. Sale of Assets to Reconstruction Companies 24. the Bank has been advised are well diversified. computer servers.39 assets such as ATMs.BP.048/2014-15 dated March 30.5% amounting to ` 543. Government pending resolution by stakeholders.42 crore).50 crore against basis and no material effect is expected on the profit outstanding in the food credit advance to a State and loss account of the current year. 20. The amount unamortised as at March 31.No. Consequently.132/2013-14 dated effect of which on the financial statements is considered February 26. local head offices and corporate centre In accordance with RBI instruction. Retail deposits constitute major portion During the year.78 crore) has been charged to 25. Performing Assets (NPAs) as per the policy approved 27. 2014. interest on such deposits to 50 per cent of CCPB held by them as on December have been re-classified to “Others” from “Income from 31. 2015 on Fund and other related deposits have been re-classified ‘Utilisation of Floating Provisions/Counter Cyclical to Schedule 11. crore (previous year ` 2. and such funding sources (AQR) conducted by RBI. Previous year figures have been regrouped/ by the Bank’s Board of Directors.98/21. Food Credit Inter Office Accounts between branches.803.179. ` 1. been mentioned.19 crore) is being coin dispensing machine. December 2015 and March 2016.Accordingly.509.131. to utilise up Investments.83 crore on account of the Profit & Loss Account for the year ended March 31.01 crore (previous year ` 2.No. been made for the first time in terms of RBI guidelines / in accordance with the board approved policy and Accounting Standards. 37 Adjustments for: Increase/(Decrease) in Deposits 153929.17) (3258.87 469.92.2015 (Current Year) (Previous Year) ` ` CASH FLOW FROM OPERATING ACTIVITIES: Net Profit before Taxes 13774.72) (2490.45 1116.74 19313.07.30.00.50 Provision on Standard Assets 2157.67.32 (Profit)/Loss on sale of Fixed Assets (Net) 16.99 (Profit)/Loss on revaluation of Investments (Net) 151.80.06) Ventures/Associates (Increase)/ Decrease in Advances (190658.40 22057.09.94) 196 State Bank of India | Annual Report 2015-16 .69.42.30 (Increase)/ Decrease in Other Assets (34583. 2016 (000s omitted) Particulars Year ended on Year ended on 31.43 0 (Profit)/Loss on sale of Investments Subsidiaries/Joint Ventures/Associates (108.29) Other provisions including provision for contingencies 192.03.76) (61812.30) Profit/(Loss) on sale of Investments Subsidiaries/Joint Ventures/Associates 108.45.16.55.74. Associates (475.75 (Increase)/ Decrease in Investments other than investments in Subsidiaries/Joint 5954.49 Provision for Investment depreciation/(appreciation) 149.37.54.37 42.35) 0 18381.68.95.42.20 Adjustments for: Depreciation on Fixed Assets 1700.30 48265.21.82.02.44) Reduction in FCTR on disposal of investments in non-integral Operations (873.49.37.36.78.2016 31.00 0 Dividend received from Subsidiaries/Joint Ventures/Associates 475.STATE BANK OF INDIA Cash Flow Statement for the year ended on 31st March.77.49.26. Joint Ventures.91 2435.90.60) (4258.90 CASH FLOW FROM INVESTING ACTIVITIES (Increase)/ Decrease in Investments in Subsidiaries/Joint Ventures/Associates (1593.97.00) 0 Provision for diminution in fair value & Non Performing Assets 26984.02 Increase/ (Decrease) in Borrowings other than Capital Instruments 12902.03.88 (590.02) (1444.54.93.19.03.96.36 17908.05.57 677.35.72 27621.82 43842.03.81) (108105.33.77.14.11 182384.38 3822.32 31879.05.29 Income from investment in Subsidiaries.74.00.43) Interest paid on Capital Instruments 3722.07 34437.57) (677.84 (80924.84.76.00.82.72.33.43 (Increase)/ Decrease in Fixed Assets (2738.87) Increase/ (Decrease) in Other Liabilities 23446.17) NET CASH GENERATED FROM/ (USED IN) OPERATING ACTIVITIES A 11196.07) NET CASH GENERATED FROM/ (USED IN) INVESTING ACTIVITIES B (3748.07 Tax refund/ (Taxes paid ) (7185. 33. Arundhati Bhattacharya Shri Sunil Mehta Chairman State Bank of India | Annual Report 2015-16 197 .78.2016 31. Girish Kumar Ahuja Dr.12 38871.03. Mallya Shri Deepak I.G.14.03.2015 Cash & Balance with RBI 129629. Amin Shri Tribhuwan Nath Chaturvedi Dr.2015 (Current Year) (Previous Year) ` ` CASH FLOW FROM FINANCING ACTIVITIES Proceeds from issue of equity shares including share premium 5384.71 NET INCREASE/(DECREASE) IN CASH & CASH EQUIVALENTS (A+B+C+D) 12711.73) EFFECT OF EXCHANGE FLUCTUATION ON TRANSLATION RESERVE D 757.21 Signed by: Shri P.86) (1236.2016 31.87.53 115883.78.30) Dividends paid including tax thereon (3058.86 Total 167467.36 132.03.21 132549.57 0 Share application money pending allotment received during the year 0 2970.84.03.35 Balances with Banks and money at call & short notice 37838. (000s omitted) Particulars Year ended on Year ended on 31.65 154755.33.80.38) (3822.82.63.00 Issue/(redemption) of Capital Instruments 5902.43) NET CASH GENERATED FROM/ (USED IN) FINANCING ACTIVITIES C 4505.00) Interest on Capital Instruments (3722.00. Gupta Shri V.33.D.65.49. Pushpendra Rai Smt.84.20 (200.K.78. Sriram Managing Director Managing Director Managing Director (Compliance & Risk) (Associates & Subsidiaries) (Corporate Banking Group) Directors: Shri Sanjiv Malhotra Shri M.65.53 (2289.21 Note: Components of Cash & Cash Equivalents as at: 31.11.32.87.94 CASH AND CASH EQUIVALENTS AT BEGINNING OF THE YEAR 154755.44 22206.27 CASH AND CASH EQUIVALENTS AT END OF THE YEAR 167467. Kannan Shri B.65.78.65 154755.93.00. No.No.083899 Firm Regn.000517 N Firm Regn. M.106137 Partner.302114 E Firm Regn. M.071224 Partner.No.No.083030 Partner.000257 N For M/s Chatterjee & Co.No. No.No.No.No.No.In terms of our report of even date For M/s Varma & Varma For M/s Mehra Goel & Co.No.003790 S For M/s V.000709 C Firm Regn. For M/s Amit Ray & Co. Chhawchharia & Co.No. M. M.18088 Firm Regn.070468 Firm Regn. Chartered Accountants Chartered Accountants Chartered Accountants Ajay Gupta Sudip Mukherji Kshitiz Chhawchharia Partner. N.109208 W Firm Regn. Chartered Accountants Chartered Accountants S N Sharma Akshay Kumar Gupta Partner. 305123 E For M/s Manubhai & Shah LLP For M/s M.106041W/W100136 Firm Regn.No.301079 E Firm Regn.016043 Partner. Mukherji & Co.070744 Firm Regn. For M/s Mittal Gupta & Co.No.No. For M/s B. M. M.No. M.206439 Partner. M. For M/s GSA & Associates Chartered Accountants Chartered Accountants Chartered Accountants Hitesh M Pomal M V Ramana Murthy Sunil Aggarwal Partner.No.No.No.No.001874 C Place : Kolkata Date : 27th May.000483 C For M/s S L Chhajed & Co.004532 S Firm Regn. Chartered Accountants Chartered Accountants Chartered Accountants S K Chatterjee D S Rawat Basudeb Banerjee Partner.000459 S Firm Regn. M. 2016. For M/s S. Sankar Aiyar & Co.No.No.No. M. Bhaskara Rao & Co.001113 N Firm Regn.No.013321 Partner. M. M. M.No.003124 Partner.No. For M/s Bansal & Co.006102 Partner. M. 198 State Bank of India | Annual Report 2015-16 .No. For M/s S R R K Sharma Associates Chartered Accountants Chartered Accountants Chartered Accountants Cherian K Baby R K Mehra S R R K Sharma Partner.090104 Partner.No.061087 Firm Regn. which comprises the Balance Sheet whether due to fraud or error. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain iii) 55 Foreign Branches audited by the local reasonable assurance about whether the financial auditors. management includes the design. In making those risk as at March 31. control relevant to the Bank’s preparation and fair 17. 2016. the is sufficient and appropriate to provide a basis for our State Bank of India Act. as well as evaluating the overall performance and cash flows of the Bank in accordance presentation of the financial statements. The branches audited by us and those audited by other 4. Also incorporated in the Balance Sheet on the auditor’s judgment. The procedures selected depend Bank of India. i) The Central Offices. We have audited the accompanying financial systems relevant to the preparation of the financial statements of State Bank of India (“the Bank”) as at statements that are free from material misstatement.81% of deposits. We conducted Management Group (Central) and 42 branches our audit in accordance with the Standards on Auditing audited by us. We believe that the audit evidence we have obtained provisions of the Banking Regulation Act. statements are free from material misstatement. Our responsibility is to express an opinion on these Mid-Corporate Group (Central). International Business Auditor’s Responsibility Group. and 4. design audit procedures that are appropriate in the circumstances. including the Accounting State Bank of India | Annual Report 2015-16 199 . An audit involves performing procedures to obtain audit auditors have been selected by the Bank in accordance evidence about the amounts and disclosures in the with the guidelines issued to the Bank by the Reserve financial statements. Global Market Group. the Profit and Loss Account and assessments. 2016. March 31. issued by the Institute of Chartered Accountants of India. This responsibility of the The President of India. policies and practices. Corporate Accounts Group (Central). whether due to fraud or error. The Bank’s management is responsible for the appropriateness of accounting policies used and the preparation of these financial statements that give reasonableness of the accounting estimates made a true and fair view of the financial position. 14 Local Head Offices. 1955 and recognised accounting audit opinion. These those risk assessments. the auditor considers internal unaudited branches account for 4. Stressed Assets financial statements based on our audit.Independent Auditors’ Report To Standards issued by the Institute of Chartered Accountants of India (ICAI).903 Indian Branches audited by other auditors. with the requirements of the Reserve Bank of India. 3. including the assessment and the Profit and Loss Account are the returns from of the risks of material misstatement of the financial 8. financial by management. ii) 8.714 Indian Branches (including other accounting statements. and internal controls that are relevant to the preparation of a summary of significant accounting policies and other the financial statements and designed procedures that explanatory information. 1949.03% of advances. the management has implemented such the Cash Flow Statement for the year then ended. Incorporated in these financial are appropriate in the circumstances so that the internal statements are the returns of control with regard to all the activities of the Bank is effective. but not for the purpose of expressing Management’s Responsibility for the Financial an opinion on the effectiveness of the entity’s Statements internal control.08% of interest expenses. An audit also includes evaluating the 2. the 5.99% of interest income and presentation of the financial statements in order to 16. implementation and Report on the Financial Statements maintenance of internal controls and risk management 1. In making units) which have not been subjected to audit. in and belief. have been within the powers of the (iii) the Cash Flow Statement gives a true and fair Bank. 18. we report India. for the year covered by the account.8 – para 21: utilization of Counter Cyclical Buffer of `1. 7. and 8. 1955. In our opinion. In our opinion. 149 crore during the year. and b) The transactions of the Bank. 200 State Bank of India | Annual Report 2015-16 . (a) Note No. were necessary for the purposes of conformity with accounting principles generally our audit and have found them to be satisfactory.01 crore on account of loss on sale of assets to Reconstruction Companies. Our opinion is not qualified in respect of the above stated matter. that: (ii) the Profit and Loss Account. We draw attention to Note 18 of Schedule 18: ‘Notes to 10. as shown by books of the Bank. the Profit and Loss Accounts’ regarding: Account and the Cash Flow Statement comply with the applicable accounting standards. is properly drawn up so as 9. Subject to the limitations of the audit indicated in to exhibit a true and fair view of state of affairs paragraphs 1 to 5 above and as required by the of the Bank as at 31st March 2016 in conformity State Bank of India Act.8 – para 20: non-amortization of `1. which have come to our notice.131.Opinion Report on Other Legal and Regulatory Requirements 6. the Balance Sheet. read with the significant by virtue of the provisions of the State Bank of India Act. The Balance Sheet and the Profit and Loss Account to the best of our information and according to the have been drawn up in Forms “A” and “B” respectively explanations given to us: of the Third Schedule to the Banking Regulation Act 1949 and these give information as required to be given (i) the Balance Sheet. view of the cash flows for the year ended on that date. read with the a) We have obtained all the information and significant accounting policies and the notes explanations which to the best of our knowledge thereon shows a true balance of profit. 18. a full and fair Balance Sheet containing all the necessary particulars. accepted in India. c) The returns received from the offices and branches of the Bank have been found adequate Emphasis of Matter for the purposes of our audit. accounting policies and the notes thereon is 1955 and regulations there under. (b) Note No. and subject also to the with accounting principles generally accepted in limitations of disclosure required there in. For M/s S R R K Sharma Associates Chartered Accountants Chartered Accountants Chartered Accountants Cherian K Baby R K Mehra S R R K Sharma Partner.013321 Partner.No. M.070744 Firm Regn.No.No.No. M.206439 Partner.000709 C Firm Regn. 305123 E For M/s Manubhai & Shah LLP For M/s M.No. Mukherji & Co.No.No. Chartered Accountants Chartered Accountants Chartered Accountants S K Chatterjee D S Rawat Basudeb Banerjee Partner.006102 Partner. Chartered Accountants Chartered Accountants S N Sharma Akshay Kumar Gupta Partner. M. M. For M/s Amit Ray & Co.302114 E Firm Regn. M.No. For M/s GSA & Associates Chartered Accountants Chartered Accountants Chartered Accountants Hitesh M Pomal M V Ramana Murthy Sunil Aggarwal Partner.No.No.No.000459 S Firm Regn.No.003124 Partner.004532 S Firm Regn. 2016.301079 E Firm Regn. For M/s Bansal & Co.001113 N Firm Regn. For M/s S.No.083030 Partner. M. Chhawchharia & Co. N.No.071224 Partner.061087 Firm Regn.070468 Firm Regn. Bhaskara Rao & Co. M. For M/s B.No.083899 Firm Regn. M. Sankar Aiyar & Co.000517 N Firm Regn. For M/s Varma & Varma For M/s Mehra Goel & Co. M.No.No.106137 Partner. M.106041W/W100136 Firm Regn.No.090104 Partner. M.No. Chartered Accountants Chartered Accountants Chartered Accountants Ajay Gupta Sudip Mukherji Kshitiz Chhawchharia Partner.No.001874 C Place : Kolkata Date : 27th May. M.No.016043 Partner.No. For M/s Mittal Gupta & Co.003790 S For M/s V. No. M.No.18088 Firm Regn. M.000483 C For M/s S L Chhajed & Co.109208 W Firm Regn. State Bank of India | Annual Report 2015-16 201 .No.No.No.000257 N For M/s Chatterjee & Co.No. STATE BANK OF INDIA Consolidated Balance Sheet as on 31st March 2016 (000s omitted) Schedule As on As on No. 31.03.2016 31.03.2015 (Current Year) (Previous Year) ` ` CAPITAL AND LIABILITIES Capital 1 776,27,77 746,57,31 Reserves & Surplus 2 179816,08,85 160640,96,97 Minority Interest 6267,40,44 5497,11,75 Deposits 3 2253857,56,44 2052960,78,88 Borrowings 4 258214,39,05 244663,46,71 Other Liabilities and Provisions 5 271965,91,64 235601,10,84 TOTAL 2970897,64,19 2700110,02,46 ASSETS Cash and Balances with Reserve Bank of India 6 160424,56,91 144287,54,67 Balances with Banks and Money at Call & Short Notice 7 43734,89,64 44193,50,13 Investments 8 705189,07,67 673507,48,44 Advances 9 1870260,89,28 1692211,33,41 Fixed Assets 10 15255,68,28 12379,29,52 Other Assets 11 176032,52,41 133530,86,29 TOTAL 2970897,64,19 2700110,02,46 Contingent Liabilities 12 1184201,34,24 1190338,69,09 Bills for Collection 106611,67,61 105970,51,47 Significant Accounting Policies 17 Notes to Accounts 18 In term of our Report of even date. For Varma and Varma Chartered Accountants (Arundhati Bhattacharya) CHAIRMAN Cherian K Baby Partner (P. K. Gupta) (V. G. Kannan) (B. Sriram) Mem. No. : 16043 MD (C & R) MD (A & S) MD (CBG) Firm Regn. No. : 004532 S KOLKATA Dated 27th May 2016 202 State Bank of India | Annual Report 2015-16 SCHEDULES SCHEDULE 1 - CAPITAL (000s omitted) As on 31.03.2016 As on 31.03.2015 (Current Year) (Previous Year) ` ` Authorised Capital 5000,00,00 5000,00,00 5000,00,00,000 equity shares of ` 1 /- each (Previous Year 5000,00,00,000 equity shares of ` 1/- each) Issued Capital : 776,35,98 746,65,61 776,35,98,072 equity shares of ` 1/- each (Previous Year 746,65,61,670 equity shares of ` 1/- each) Subscribed and Paid up Capital 776,27,77 746,57,31 776,27,77,042 equity shares of ` 1/- each (Previous Year 746,57,30,920 equity shares of ` 1/- each) [The above includes 14,45,93,240 equity shares of ` 1/- each (Previous Year 16,04,31,560 equity shares of ` 1/- each) represented by 1,44,59,324 (Previous Year 1,60,43,156) Global Depository Receipts] TOTAL 776,27,77 746,57,31 SCHEDULE 2 - RESERVES & SURPLUS (000s omitted) As on 31.03.2016 As on 31.03.2015 (Current Year) (Previous Year) ` ` I. Statutory Reserves Opening Balance 57789,72,97 52885,09,44 Additions during the year 3709,43,37 4904,63,53 Deductions during the year - 61499,16,34 - 57789,72,97 II. Capital Reserves # Opening Balance 2816,00,26 2500,48,95 Additions during the year 538,20,31 315,51,31 Deductions during the year 1,09 3354,19,48 - 2816,00,26 III. Share Premium Opening Balance 41444,68,60 41444,68,60 Additions during the year 8333,44,99 - Deductions during the year 8,65,88 49769,47,71 - 41444,68,60 IV. Foreign Currency Translation Reserves Opening Balance 6765,70,93 6759,69,99 Additions during the year 937,97,19 98,24,78 Deductions during the year 890,05,13 6813,62,99 92,23,84 6765,70,93 V. Revaluation Reserve Opening Balance - - Additions during the year 1374,03,37 - Deductions during the year - 1374,03,37 - - State Bank of India | Annual Report 2015-16 203 SCHEDULES As on 31.03.2016 As on 31.03.2015 (Current Year) (Previous Year) ` ` VI. Revenue and Other Reserves Opening Balance 49208,96,59 41001,62,17 Additions during the year ## 4885,36,61 8228,28,70 Deductions during the year 368,57,53 53725,75,67 20,94,28 49208,96,59 VII. Balance in Profit and Loss Account 3279,83,29 2615,87,62 Total 179816,08,85 160640,96,97 # includes Capital Reserve on consolidation ` 242,83,39 thousand (Previous Year ` 237,49,80 thousand) ## net of consolidation adjustments SCHEDULE 3 - DEPOSITS (000s omitted) As on 31.03.2016 As on 31.03.2015 (Current Year) (Previous Year) ` ` A. I. Demand Deposits (i) From Banks 6740,88,18 7247,03,57 (ii) From Others 163938,91,29 145818,36,10 II. Savings Bank Deposits 744908,74,55 656490,39,45 III. Term Deposits (i) From Banks 9082,28,40 11852,80,26 (ii) From Others 1329186,74,02 1231552,19,50 TOTAL 2253857,56,44 2052960,78,88 B I. Deposits of Branches in India 2143972,00,39 1948918,04,67 II. Deposits of Branches outside India 109885,56,05 104042,74,21 TOTAL 2253857,56,44 2052960,78,88 204 State Bank of India | Annual Report 2015-16 SCHEDULE 4 - BORROWINGS (000s omitted) As on 31.03.2016 As on 31.03.2015 (Current Year) (Previous Year) ` ` I. Borrowings in India (i) Reserve Bank of India 3391,79,00 5798,75,00 (ii) Other Banks 3686,76,87 3579,39,47 (iii) Other Institutions and Agencies 10547,50,98 18761,45,07 (iv) Capital Instruments : a. Innovative Perpetual Debt 3849,72,60 3890,00,00 Instruments(IPDI) b. Subordinated Debts & Bonds 53873,63,80 57723,36,40 47929,81,20 51819,81,20 TOTAL 75349,43,25 79959,40,74 II. Borrowings outside India (i) Borrowings and Refinance outside 178661,48,05 160735,38,97 India (ii) Capital Instruments : a. Innovative Perpetual Debt 4140,93,75 3906,25,00 Instruments(IPDI) b. Subordinated Debts & Bonds 62,54,00 4203,47,75 62,42,00 3968,67,00 TOTAL 182864,95,80 164704,05,97 GRAND TOTAL (I & II) 258214,39,05 244663,46,71 Secured Borrowings included in I & II above 13591,47,33 13595,79,97 SCHEDULE 5 - OTHER LIABILITIES AND PROVISIONS (000s omitted) As on 31.03.2016 As on 31.03.2015 (Current Year) (Previous Year) ` ` I. Bills payable 23335,72,69 24904,60,85 II. Inter Bank Adjustments (net) 237,92,52 321,30,21 III. Inter Office adjustments (net) 37419,45,02 39770,62,75 IV. Interest accrued 29833,04,28 25563,20,50 V. Deferred Tax Liabilities (net) 2930,88,61 2667,22,18 VI. Liabilities relating to Policyholders in Insurance Business 78668,25,79 70098,11,58 VII. Others (including provisions) 99540,62,73 72276,02,77 TOTAL 271965,91,64 235601,10,84 State Bank of India | Annual Report 2015-16 205 SCHEDULES SCHEDULE 6 - CASH AND BALANCES WITH RESERVE BANK OF INDIA (000s omitted) As on 31.03.2016 As on 31.03.2015 (Current Year) (Previous Year) ` ` I. Cash in hand (including foreign currency notes and gold) 17787,02,59 17753,63,55 II. Balance with Reserve Bank of India (i) In Current Account 142637,54,32 126533,91,12 (ii) In Other Accounts - - TOTAL 160424,56,91 144287,54,67 SCHEDULE 7 - BALANCES WITH BANKS AND MONEY AT CALL & SHORT NOTICE (000s omitted) As on 31.03.2016 As on 31.03.2015 (Current Year) (Previous Year) ` ` I. In India (i) Balances with banks (a) In Current Accounts 288,01,40 247,81,87 (b) In Other Deposit Accounts 2170,64,23 2244,22,90 (ii) Money at call and short notice (a) With banks 3722,29,44 3799,23,66 (b) With other institutions 37,97,35 - TOTAL 6218,92,42 6291,28,43 II. Outside India (i) In Current Accounts 26911,87,69 22355,46,00 (ii) In Other Deposit Accounts 1571,46,56 2631,23,59 (iii) Money at call and short notice 9032,62,97 12915,52,11 TOTAL 37515,97,22 37902,21,70 GRAND TOTAL (I and II) 43734,89,64 44193,50,13 206 State Bank of India | Annual Report 2015-16 25 (iv) Debentures and Bonds 61387.45.23 49626.81.13.42.48.13.44 State Bank of India | Annual Report 2015-16 207 .06.74 31448.44 27460.66.04 642857.45 TOTAL 40263.02.18.22 517554.57.83.06.72.15 41954.80. Investments outside India in : (i) Government Securities (including local authorities) 12291.2015 (Current Year) (Previous Year) ` ` I.2016 As on 31.08.49 (ii) Less: Aggregate of Provisions / Depreciation 97.89 31112.25.96 TOTAL 664925.24.41 (iii) Net Investments (vide II above) TOTAL 40263.SCHEDULE 8 .) 27880.48.53.26 462. Commercial Papers etc.98.36 IV.07.08 GRAND TOTAL (I and II) 705189.15 2283.14 (v) Subsidiaries and Associates 2456.85 336.25.88 (iii) Net Investments (vide I above) TOTAL 664925.23 (iii) Shares 23506.21.92. Investments outside India : (i) Gross Value of Investments 40360.41.67 673507.78 642395.26. Investments in India in : (i) Government Securities 532290.) 41525.20 (iii) Other Investments (Shares. Debentures etc.59 3516.16 76.24 (ii) Less: Aggregate of Provisions / Depreciation 1190.88. Investments in India : (i) Gross Value of Investments 666116.81.INVESTMENTS (000s omitted) As on 31.03.90.14 (vi) Others (Units of Mutual Funds.64 (ii) Other approved securities 3759.46 23098.67 673507.68.43 (ii) Associates 91.03.36 II.86.44 III.15.08.42.89 31112.20.78 642395.07.08 GRAND TOTAL (III and IV) 705189.27 7937.34. 47 868287.28 1692211.57 II. overdrafts and loans repayable on demand 768139.84 GRAND TOTAL (C-I & C-II) 1870260.53.41 108753. I.82 (iv) Others 952633.03.28 1692211. Secured by tangible assets (includes advances against Book Debts) 1449464.03.33.49.79 (b) Syndicated loans 92239.18 1448068.49.09 899895.2016 As on 31.18.79.25 121196. I.44 28523.35.29 1338415.89.48 298808.02.33.45.86.33. I. Unsecured 355389.24.49 76503.01.87 1263.86 III.40 715170.41 208 State Bank of India | Annual Report 2015-16 .09.2015 (Current Year) (Previous Year) ` ` A.30 (ii) Public Sector 163126.27 II.28 1692211.10.95.ADVANCES (000s omitted) As on 31.51 TOTAL 1870260.79. Advances in India (i) Priority Sector 475038.33. Term loans 996217.41.71 (ii) Due from others (a) Bills purchased and discounted 15298. Bills purchased and discounted 105904.61.97 425714.54.92 TOTAL 1593339.75.17.53.00 III.28 TOTAL 1870260.33.32 TOTAL 276921.33.41 C. Covered by Bank/ Government Guarantees 65407.87 49750.00. Advances outside India (i) Due from banks 71750. Cash credits.89.51 54987.73.53 (iii) Banks 2541.90 II.11.89.72.SCHEDULES SCHEDULE 9 .30 89365.02 (c) Others 97632.41 B.10 244142.02.24.28.31. 65 4323.SCHEDULE 10 .44 Deductions during the year 209.99 306.55.48.06 4100.09.22 47.39.34.16.40.24 985.20 20473.56 20.52.47.56 year Additions during the year 1835.27 Depreciation to date 672.52 State Bank of India | Annual Report 2015-16 209 .16.045 16.2016 As on 31.25 3704.81.69.94.FIXED ASSETS (000s omitted) As on 31.36 6.83.27.87.59 II.43 8620.03.26.34. Leased Assets At cost as on 31st March of the preceding 329.17.92 Depreciation to date including provision 101.15.41 IV.60 400.03.67 23.86 Less : Lease Adjustment Account 47.2015 (Current Year) (Previous Year) ` ` I.86 Premises) TOTAL 15255.54 7860.64.36.72.22 11.12.88 Deductions during the year 502.76.31. Other Fixed Assets (including furniture and fixtures) At cost as on 31st March of the preceding 23192.90 year Additions during the year 2.89 Depreciation to date 17125.29. Assets under Construction (Including 785.68 572. Premises At cost as on 31st March of the preceding 4672.045 18.98 25.68.88.42 343.88 5832.27 355.98.01.28 12379.36 Deductions during the year 2.28.78 15332.21 year Additions during the year 3056.31.44.51.95.66 III. 79.86. Stationery and Stamps 140.39 (b) Outside India 88084.52.08.69.03. Deferred tax assets (net) 1161.61 105970. Interest accrued 21428.85 TOTAL 176032. Claims against the Group not acknowledged as debts 16060.51.86 24.2015 (Current Year) (Previous Year) ` ` I.03.98 sector lending VIII.21.50.71 2625.11 464.47 210 State Bank of India | Annual Report 2015-16 .57.86 thousand (P.36 949.31.36 54765.45 IV. Deposits placed with NABARD/SIDBI/NHB etc.46 V.51 151058.04.77.92. Guarantees given on behalf of constituents (a) In India 164515.24 1190338.87 20948.Y. endorsements and other obligations 131160. ` 945.2016 As on 31.OTHER ASSETS (000s omitted) As on 31.21.51.2016 As on 31.06 IV. for meeting shortfall in priority 60047.72.12.16.20.66.91 TOTAL 1184201.57.23.47. Liability on account of outstanding forward exchange contracts 655899.68.03.89. Acceptances.97 VII.59 III.37 VI.49.02.SCHEDULES SCHEDULE 11 .90 16967.92 III.17.38 42289.2015 (Current Year) (Previous Year) ` ` I.48. Non-banking assets acquired in satisfaction of claims 52.41 11790. Inter Office adjustments (net) 2700.59 II.45 695217.20 133127.CONTINGENT LIABILITIES (000s omitted) As on 31.67.47 67589.96. Tax paid in advance / tax deducted at source 15697.20.86 thousand) SCHEDULE 12 .03.03.28.46 137. Other items for which the Group is contingently liable 128322.35 VI.84.41 133530.07 II.34.09 Bills for collection 106611.82.60 125913.29 # Includes Goodwill on consolidation ` 945. Others # 74805. Liability for partly paid investments 157.78.42 V. 29. K.84.36.59.87. : 004532 S KOLKATA Dated 27th May 2016 State Bank of India | Annual Report 2015-16 211 .07 Basic Earnings per Share ` 15.07 IV.18.95 ` 22.78 239772.18 837. Sriram) Mem.29.18 Less: Minority Interest 794. No.76 Diluted Earnings per Share ` 15.83.37.48 49315.12 19026.47.50 Associates and Minority Interest) Add: Share in Profit of Associates 275.06.37 4904.02.40 556.00 Dividend for the previous year paid during the year (including Tax on Dividend) 80 - Final Dividend for the year 2018.36.87.95 ` 22.63. PROFIT Net Profit for the year (before adjustment for Share in Profit of 12743.44.32.85 257289. Gupta) (V.64.29 2615. : 16043 MD (C & R) MD (A & S) MD (CBG) Firm Regn.50 16994.17. EXPENDITURE Interest expended 15 143047. Kannan) (B.31.53 Transfer to Other Reserves 5388. For Varma and Varma Chartered Accountants (Arundhati Bhattacharya) CHAIRMAN Cherian K Baby Partner (P.STATE BANK OF INDIA Consolidated Profit and Loss Account for the year ended 31st March 2016 (000s omitted) SCHEDULE Year ended 31st Year ended 31st NO.20 2648. G.92 Balance Brought forward 2615.97 Other Income 14 51016. March 2016 March 2015 (Current Year} (Previous Year) ` ` I.50.24.12 19026.76 Net Profit for the Group 12224.16.28 Tax on Dividend 444.25.33 III.29 33369.65 133178.07 17517. INCOME Interest earned 13 221854.47.76 Significant Accounting Policies 17 Notes to Accounts 18 In term of our Report of even date. APPROPRIATIONS Transfer to Statutory Reserves 3709.22 Provisions and contingencies 43363.51.06 8301.37 207974.84 73224.61 314.14.68.67.73.81.15 Amount available for Appropriation 14840.62.45 Operating expenses 16 73717. No.64 Balance carried over to Balance Sheet 3279.50.62 2032.33.62 TOTAL 14840.86 TOTAL 272871.19.83 II.67.35.66 TOTAL 260127.43. 08. exchange and brokerage 17662.93.80.OTHER INCOME (000s omitted) Year ended Year ended 31.18.33. Profit / (Loss) on sale of land.59 TOTAL 221854.2016 31.88 4843.74.58) V. Interest / discount on advances / bills 157001. Profit/ (Loss) on revaluation of investments (Net) (3144. Others 5743.76 15841. Income from financial lease .46.96 IV.18) 1786.03.2016 31.23) (51. Interest on balances with Reserve Bank of India and other inter-bank funds 1186.18 VI.73.27. Profit / (Loss) on sale of investments (Net) 8116.2015 (Current Year) (Previous Year) ` ` I.93 750.52.05.54.18 II.90. 5.80.68.03.87.67 IX Insurance Premium Income (net) 16636.28.62 5283.16. Profit / (Loss) on exchange transactions (Net) 2539.95.INTEREST EARNED (000s omitted) Year ended Year ended 31.00 II.78.31 1033.35 TOTAL 51016.2015 (Current Year) (Previous Year) ` ` I. Dividends from Associates in India/ abroad 7.37 207974.38.03.34 17.47 VII.75.97 SCHEDULE 14 .37.72 13628.41 III. Income on investments 57922.42 III.48 49315. Commission.92.05 VIII Credit Card membership/ service fees 981.05.81 153144.86 212 State Bank of India | Annual Report 2015-16 .79 2385.73 9671.67.49 X Miscellaneous Income 8237.72.37 48952.64 IV. buildings and other assets (Net) (21.03.SCHEDULES SCHEDULE 13 .59.56.84. 14.06. Insurance 2228. Interest on Reserve Bank of India / Inter-bank borrowings 4893. Payments to and provisions for employees 32525.00 III.INTEREST EXPENDED (000s omitted) Year ended Year ended 31. Auditors' fees and expenses (including branch auditors' fees and expenses ) 285. allowances and expenses 7.03.19.31 TOTAL 73717.03 II.24.33 5.2016 31.20 VII.34 5218. Advertisement and publicity 609. Others 5751.2015 (Current Year) (Previous Year) ` ` I.84 73224.68.71.64.30.09. Interest on deposits 132402.SCHEDULE 15 .62 XII.61 121588.03.56. (a) Depreciation on Leased Assets 4.82 31117.61.45.83. Postages.06. Printing and stationery 511.23 XIII Other Operating Expenses relating to Insurance Business 17930.79 1576.55 III.47.70 6371.82 2080. Law charges 362.91.38.48. Rent.21.78.65 133178.59.29.02.40 (b) Depreciation on Fixed Assets (other than Leased Assets) 2248.35.14.93.27 21972.59.95 XI.98.67.98 VI.87.65 262.22 State Bank of India | Annual Report 2015-16 213 .40.2015 (Current Year) (Previous Year) ` ` I.33 IV.12 V. etc.61.80 510.21 7931. taxes and lighting 4939.70 4506.03.05.10 XIV Other Expenditure 9290.74 5.2016 31. Directors' fees.64 796.03.81 854.53. Repairs and maintenance 797.58. Other Operating Expenses relating to Credit Card Operations 1163.06 322.24.04.42 TOTAL 143047.18.37 II.39 730.23 VIII. 812.45 SCHEDULE 16 .67. Telegrams.57 X.81 551.OPERATING EXPENSES (000s omitted) Year ended Year ended 31. Telephones.91.26 IX. Revenue recognition: a. 1. Consolidation of Joint Ventures – ‘Proportionate accrual basis of accounting on going concern basis. Pension Fund Regulatory and Development e. SEBI (Mutual Funds) Regulations. and making offices/entities are located. prepared under the historical cost convention.SCHEDULE 17. and C. Minority interest in the net assets of the of the financial statements and the reported income and consolidated subsidiaries consists of: expenses during the reporting period.SIGNIFICANT ACCOUNTING POLICIES: necessary adjustments wherever required for non-uniform accounting policies as per AS 21 A. Line by line aggregation of each item of asset/ accrual basis. and the prevalent accounting practices in consolidation nor such investment is treated as India. Basis of Preparation: “Consolidated Financial Statements” issued by The accompanying financial statements have been the ICAI. income and the respective item of the Parent. made. The amount of equity attributable to the minority financial statements are prudent and reasonable. for Investments in Associates in Consolidated 1949. Significant Accounting Policies prepared on the basis of: 1. and after expenditure are recognised as per the local laws eliminating all material intra-group balances/ of the country in which the respective foreign transactions. 2. Management believes that the estimates used in preparation of the a. Insurance Regulatory and Development Authority Financial Statements” issued by the ICAI.1 Income and expenditure are accounted on b. In terms of RBI circular on “Strategic Debt Authority (PFRDA). Consolidated financial statements of the Group subsidiary relationship came into existence. except otherwise stated. Audited accounts of State Bank of India (Parent). entities are followed. (IRDA). Use of Estimates: investment in the subsidiary entities and the The preparation of financial statements requires the group’s portion of the equity of the subsidiaries is management to make estimates and assumptions recognised in the financial statements as goodwill considered in the reported amounts of assets and / capital reserve. Restructuring Scheme”. Accounting Standards acquired in entities as part of Strategic Debt issued by the Institute of Chartered Accountants of Restructuring Scheme is neither considered for India (ICAI). unrealised profit/loss. Consolidation’ as per AS 27 “Financial Reporting unless otherwise stated and conform in all material of Interests in Joint Ventures” issued by the ICAI. The minority share of movements in revenue reserves/loss (equity) since the date the parent- 1. (comprising of 30 subsidiaries. liabilities (including contingent liabilities) as on the date 3. foreign offices/entities. the controlling interest 1996. which comprise applicable statutory d. regulatory norms/guidelines prescribed by the ‘Equity Method’ as per AS 23 “Accounting the Reserve Bank of India (RBI). 8 Joint Ventures and 20 Associates) have been D. In case of foreign entities. 214 State Bank of India | Annual Report 2015-16 . aspects to Generally Accepted Accounting Principles (GAAP) in India. at the date on which investment in a subsidiary is Future results could differ from these estimates. Banking Regulation Act. on the c. The difference between cost to the group of its B. Companies Act 2013. As liability/income/expense of the subsidiaries with regards. Generally Accepted investments in subsidiary/ associate as the control Accounting Principles as applicable to the foreign is protective in nature and not participative. Accounting for investment in ‘Associates’ under provisions. Basis of Consolidation: b. is recognised as follows : Non-banking entities: 1. On Interest bearing securities. and (iii) Upfront fees Derivatives designated as “Trading”.10 The sale of NPA is accounted as per guidelines over the primary lease period. (ii) overdue interest on investments Business and ATM interchange fees. which is spread over the period of (hereafter collectively referred to as Regulatory the guarantee. from Non-Performing Assets (NPAs). 1. comprising of advances.8 One time Insurance Premium paid under Special in the Profit and Loss Account.2 Interest income is recognised in the Profit and 1. 1. an Home Loan Scheme (December 2008 to June amount equal to the profit on sale of investments 2009) is amortised over average loan period of in the ‘Held to Maturity’ category is appropriated 15 years. (ii) Commission on Government Authorities).11 i. leases and investments. paid/incurred in be transferred to statutory reserve) to ‘Capital connection with issue of Bonds/Deposits are Reserve Account’. as permitted by the RBI. Issue management and advisory fees are ii.7 All other commission and fee incomes are recognised upon realisation. (net of applicable taxes and amount required to 1.. If the sale is at a price below the net book value on the net investment outstanding in respect of (NBV) (i. which is 1. which are on restructured accounts. to the net investment outstanding in the lease. income. If the sale is for a value higher than the NBV. 1. Commission etc.3 Profit or Loss on sale of investments is recognised 1. as per the prudential recognised on their realisation except for (i) norms prescribed by the RBI/ respective country Guarantee commission on deferred payment regulators in the case of foreign offices/entities guarantees. constant yield basis. Leases effective prescribed by RBI :- from April 1. However. iii. The principal amount is utilized shortfall is debited to the Profit and Loss Account for reduction in balance of net investment in over a period of 8 quarters equally beginning lease and finance income is reported as interest from the quarter in which the sale was effected . the 1. it is recognised Merchant Banking: only at the time of sale/ redemption. net of pass-through. (iii) Income on Rupee recognised as they accrue. State Bank of India | Annual Report 2015-16 215 . the finance leases.5 Income (other than interest) on investments in excess provision is written back in the year the “Held to Maturity” (HTM) category acquired at amounts are received. Securitisation Company (SC)/Reconstruction issued by ICAI. book value less provisions held). a pattern reflecting a constant periodic return ii. which are and bills discounted. The lease rentals are apportioned Company (RC). over the restructured period.9 Brokerage. a. a discount to the face value. it is accounted recognised as per the terms of the agreement for over the balance tenor of the security on a with the client. amortized over the tenure of the related Bonds/ 1. the same is removed from the between principal and finance income based on books.e. When the bank sells its financial assets to lease as per Accounting Standard 19 – Leases.4 Income from finance leases is calculated by Deposits and the expenses incurred in connection applying the interest rate implicit in the lease with the issue are charged upfront.6 Dividend is accounted on an accrual basis where Loss Account as it accrues except (i) income the right to receive the dividend is established. which is apportioned accounted on realisation. 2001 are accounted as advances at an amount equal to the net investment in the i. On zero-coupon securities. financial year on all live standard accounts. policyholders. All other service income/fees are recorded at the under SEBI (Mutual Funds) Regulations. applied on sheet date. Brokerage and/or incentive paid on investments in completion of assignment. brokerage is charges and is net of scheme incentives paid. amortised over the tenure of schemes. Facility is accounted on the basis of receipts. rates and expenses relating to new fund offer are Life Insurance: charged to the Profit and Loss Account in the year in which they are incurred in accordance a. open-ended Equity Linked Tax Saving Schemes and Systematic Investment Plans (SIPs) are c. premium income is recognised when the 216 State Bank of India | Annual Report 2015-16 . 1st of d. Portfolio Advisory Services and Portfolio Factoring: Management Services income is recognised on accrual basis as per the terms of the contract. over the claw back period. Recovery. if any. Joining membership fee confers only joining rights and not any other right/privilege and e. b. Management fee is recognised at specific rates customers is written back as income on balance agreed with the relevant schemes. mutual fund/other securities is accounted for based on mobilisation and intimation received b. 1996. Brokerage income in relation to stock broking amortised over a period of 36 months and in case activity is recognized on the trade date of of other schemes. Commission relating to public issues is accounted Credit Card Operations: for on finalisation of allotment of the public issue/ receipt of information from intermediary. Premium of non-linked business is recognised with the requirements of SEBI (Mutual Funds) as income (net of service tax) when due from Regulations. wherever back as income on balance sheet date. The total unidentified receipts which could not be Charges are recognised on accrual basis and credited or adjusted in the customers’ accounts transaction charges are recognised on trade date for lack of complete & correct information is of transaction. The applicable. Further. investments made by the company in liability for stale cheques aged for more than the respective scheme and deposits with Banks). Brokerage income relating to public issues/ therefore same is recognised on accrual basis. The estimated unidentified receipts aged more than 6 Asset Management: months and up to 3 years towards the written off a. Expenses of schemes in excess of the stipulated May is deemed as date for accrual of the FCF. Depository income – Annual Maintenance c. 1996. its receipt after execution of documents. considered as liability in balance sheet. Factoring charges are accrued on factoring of debts at the applicable rates as decided by the c. f. In respect of linked business. a. and are in conformity with the limits specified d. in terms of the right of subrogation. b. the unresolved unidentified the average daily net assets of each scheme receipts aged more than 3 years are also written (excluding inter-scheme investments. transaction and includes stamp duty. d. Recovery Continuation fees (FCF) are calculated and from funded guarantee schemes is recognised as charged in the month of May for the entire next income in the year of receipt. time of occurrence of the respective events. on realisation of devolved company. basis. Interchange income is recognised on accrual from clients/intermediaries. transaction In case of close-ended schemes. three years is written back as income. Processing fees are recognised as investments of schemes acquired by the income only when there is reasonable certainty of company. Fees for private placement are recognised on e. are recovered all the life insurance policies has been calculated from linked fund in accordance with terms by the Appointed Actuary in accordance with the and conditions of policy and recognised when Insurance Act 1938. Uncollected premium from claims. Income from linked funds which includes fund management charges. The unit liability in respect where applicable. authorities are provided for based on whichever is appropriate. Premium ceded on reinsurance is accounted in Practice Standards (APS) issued by the Institute accordance with the terms of the re-insurance of Actuaries of India. Liability for life policies: The actuarial liability of charges. fees. are costs that are primarily related to b. is recognized as income ® Repudiated claims disputed before judicial over the contract period or the period of risk. instalment due is recorded on the due date of the Surrenders and lapsation are disclosed at instalment. premium income is are accounted for in the same period as recognised on the date when the Policy Account the related claims and are reduced from Value is credited. mortality charges. period of risk or contract period. of linked business has been taken as the value of the units standing to the credit of the policy ® Claims by death and rider are accounted holders. using the Net Asset Value (NAV) as on when intimated. including net of charges recoverable. c. e. associated units are allotted. Acquisition costs such as commission. to the ULIP business by considering liability as ® Claims by maturity are accounted on the the policy account standing to the credit of the policy maturity date. regulations and circulars issued by IRDA and the relevant Guidance Notes and/or Actuarial d. ® Survival and Annuity benefits claims are accounted when due. Top-up premiums are considered as single the acquisition of new and renewal insurance premium. and as per the rules and recovered. Non-linked business is reserved using a prospective gross premium valuation method. future experience. lapsed policies is not recognised as income until f. on a gross basis management prudence considering the under 1/365 method. contracts and are expensed as and when incurred. In case of Variable ® Amounts recoverable from re-insurers Insurance Products (VIPs). Benefits paid also includes commencement of risk. Benefits paid: Mathematical reserves are calculated based on ® Claims cost consist of the policy benefit future assumptions having regard to current and amounts and claims settlement costs. policy holders plus additional provisions for adequacy of charges to meet expenses. In case the premium is amount payable on lapsed policies which recovered in instalments. medical such policies are revived. General Insurance: ® Surrenders are accounted as and when a. policy administration g. Intimations up to the end the valuation date. amount to the extent of are accounted for as and when due. etc. Adjustments State Bank of India | Annual Report 2015-16 217 . etc. treaty or in-principle arrangement with the re- insurer. reinstatement premium. on direct business and reinsurance accepted. Premium is recorded in the books at the intimated. The variable insurance policies of the period are considered for accounting (VIPs) have also been valued in a manner similar of such claims. Any subsequent revision facts and evidences available in respect of to premium is recognized over the remaining such claims. Premium (net of service tax). Profit commission issued by the Institute of Actuaries of India under re-insurance treaties. by Pension Fund Regulatory and Development Authority (PFRDA). salvage value and other recoveries Corporate Trusteeship service charges are as estimated by the management. defined as costs that vary with. In respect of proportional reinsurance ceded. Commission received on reinsurance ceded principles in accordance with the Actuarial is recognised as income in the period in which Practice Standards and Guidance Notes reinsurance risk is ceded. applied subsequent revision to. Non-proportional Pension Fund Operation: reinsurance cost is recognized when due.e. (Mutual Funds) Regulations. and is in of premiums is recognized in the period in which conformity with the regulatory guidelines issued they occur. Acquisition costs are specific rates agreed with relevant schemes. investment insurance contracts viz.e. The primary test for determination Management Company and deferred revenue as acquisition cost is the obligatory relationship expenses. recognised/accrued on the basis of terms of trusteeship contracts/agreements entered into g. Non- proportional reinsurance cost is accounted as per Management fee is recognized at specific rates the terms of the reinsurance arrangements. Any agreed with the relevant schemes. The Company presents d. Provision for claims outstanding recognised on the acceptance or execution of payable as on the date of Balance Sheet is net of trusteeship assignment whichever is earlier. Investments - not enough reported i. for on the basis of returns. to the extent received. Provision in respect of claim liabilities that with clients. policy issue in fixed deposits. and is in between the costs and the execution of the conformity with the limits specified under SEBI insurance contracts (i. Acquisition costs are expensed in the period in Mutual Fund Trusteeship fee is recognised at which they are incurred. commission. is probable that the economic benefits will flow c. commencement of risk). reported with other than Government Securities are recorded on “Trade Date”. Reinsurance inward acceptances are accounted revenues net of Service Tax. the commencement of risk. 1996. 218 State Bank of India | Annual Report 2015-16 . to the company and the revenue can be reliably the cost of reinsurance ceded is accrued at measured. wherever applicable. Claim is recognized as and when a loss occurrence Corporate Trusteeship Acceptance fees are is reported. and IRDA regulations and guidelines. and are primarily applied on the daily Net Assets of each scheme related to the acquisition of new and renewal (excluding inter-scheme investment. Trustee Operations: e. refunds or cancellations on daily net assets of each scheme. may have been incurred before the end of the accounting year but are 2. from the insurers. is the amount determined by the Appointed Actuary based on actuarial b. wherever applicable). investments made by the Asset expenses etc. f. (IBNER). is recognized as income in the year of final determination of the profits as intimated by Custody & Fund accounting services: Reinsurer and combined with commission on The revenue is recognised to the extent that it reinsurance ceded. Investments: - not yet reported or claimed (IBNR) or The transactions in Government Securities are recorded on “Settlement Date”. to premium income arising on cancellation of information insufficient for making a policies are recognised in the period in which reasonable estimate of likely claim amount they are cancelled. reinsurance. Investments that the Bank intends to hold till the lower of acquisition cost/book value/ maturity are classified as “Held to Maturity market value on the date of transfer. On State Bank of India | Annual Report 2015-16 219 . etc. Broken period interest paid / revalued at the market price or fair received on debt instruments is value determined as per Regulatory treated as interest expense/income guidelines. iii. HFT or valued at carrying cost.1 Classification: investments under HTM category is determined on FIFO basis (first Investments are classified into three categories. Held to Maturity (HTM). However. Investments. if any. for each cost. Available for Sale average cost method by other group (AFS) and Held for Trading (HFT) as per RBI entities. Treasury Bills and Commercial Papers are iv. AFS at the time of its purchase and subsequent iv. is provided.3 Valuation: the face value. in which case the premium is amortised over the period of remaining A. book value. transfer of ii. Banking Business: maturity on constant yield basis. if any. other than temporary. on such transfer is fully provided for. categories: Investments held under AFS and HFT categories are individually c. Such i. paid in with AS 23 of the ICAI. is ignored. Guidelines. depreciation. Cost of investment under AFS and Securities (iii) Shares (iv) Bonds and HFT category is determined at the Debentures (v) Subsidiaries and Joint weighted average cost method Ventures. Brokerage.2 Basis of classification: category to HTM category is carried out at i. Investments that are held principally for resale securities from HTM category to AFS within 90 days from the date of purchase are category is carried out on acquisition price/ classified as “Held for Trading (HFT)”. investment individually. Government securities (ii) Other Approved d. Sale (AFS)”. After transfer. securities at equity cost determined in accordance transaction tax. Available for Sale and Held for Trading and excluded from cost. at acquisition cost unless it is more than 2. An investment is classified as HTM.. 2. which are not classified in the above are immediately revalued and resultant two categories. are classified as “Available for depreciation. Transfer of securities from HFT/AFS 2. and (vi) others) is provided by the group entities and cost of for and net appreciation. Investments in Regional Rural Banks (RRBs) are valued b. In determining the acquisition cost of an amortisation of premium is adjusted investment: against income under the head “interest a. in first out) by SBI and weighted viz. commission. and only the net depreciation and is excluded from cost/sale of each group for each category (viz. Held to Maturity category: Investments shifting amongst categories is done in conformity under Held to Maturity category are carried with regulatory guidelines. A provision is made for subscriptions is reduced from the diminution. (i) consideration. The (HTM)”. ii. connection with acquisition of investments are expensed upfront v. these securities iii. Brokerage/commission received on on investments”. those equity shares would be b. The securities sold and purchased valuation of such investments. In respect of foreign offices/entities. Accordingly. SRs issued the local regulations or as per the by an SC/ARC are valued in accordance norms of RBI. as days. vi. The above entries a. provisions held) of the financial asset and provisions for NPIs are made as per (ii) Redemption value of SR. instruments. the Net Asset Value. investment in any of the securities Interest expended / earned thereon issued by the same entity would also is accounted for as expenditure / be treated as NPI and vice versa. LAF with RBI are debited / credited c. Investments are classified as performing accounted as Collateralized lending and non-performing. The above would apply mutatis- the individual security remains unchanged mutandis to Preference Shares after marking to market. Investments of domestic offices of securities is reflected using the become non-performing where: Repo/Reverse Repo Accounts and Contra entries. are also issue of Security Receipts (SR). the case may be. In the case of equity shares. which are deemed to be Reconstruction Company (ARC) against in the nature of advance.e. where the fixed dividend is not paid. Securities purchased / sold under reckoned as NPI. Repo A/c is classified under schedule 1 per company on account of the 7 (Balance with Banks and Money at non availability of the latest balance Call & Short Notice).. Balance in Repo b. investment subjected to NPI norms as applicable in SR is recognised at lower of (i) Net to investments. The investments in debentures/ to Securitisation Company (SC)/ Asset bonds. (LAF) with the RBI) obtained from the SC/ARC. In case of sale of NPA (financial asset) e. under Repo/ Reverse Repo are vii. the book value of d. is reckoned for a. whichever is more with the guidelines applicable to non-SLR stringent. based on the and borrowing transactions. However guidelines issued by the RBI in the case securities are transferred as in the of domestic offices/entities and respective case of normal outright sale/ purchase regulators in the case of foreign offices/ transactions and such movement entities. Book Value (NBV) (i. provision for depreciation. on maturity of the transaction. Accounting for Repo/Reverse Repo to the actual realisation of the financial transactions (other than transactions assets assigned to the instruments in the under the Liquidity Adjustment Facility concerned scheme. in the A/c is classified under schedule 4 event the investment in the shares (Borrowings) and balance in Reverse of any company is valued at Re. If any credit facility availed by an to Investment Account and reversed entity is NPA in the books of the bank. revenue. sheet. 220 State Bank of India | Annual Report 2015-16 . Interest/instalment (including are reversed on the date of maturity. maturity proceeds) is due and Costs and revenues are accounted remains unpaid for more than 90 as interest expenditure/income. in cases where the SRs issued by the SC/ARC are limited viii. book value less f. mutual of the secondary exchange i. the closing price of short term.e. National year are valued on yield to maturity Stock Exchange of India Limited basis. In case of ® In case of Security Lending and securities with options. linked policyholders investments are investments are made in accordance with the taken to “Revenue & Other Reserves Insurance Act. ® Investments in mutual fund units are Unrealised gains or losses arising on valued at the Net Asset Value (NAV) such valuation are recognized in the of previous day in life insurance and Profit & Loss Account. BSE is considered. BSE during its short term tenor. valued at amortised cost using yield to maturity method.e. of balance sheet date in general insurance.e. exchange i. (i) Valuation of investment pertaining to in the Balance Sheet. If security is purchased the secondary exchange i. closing price of listed equity shares. 2000. B. Money market securities are ® Unlisted equity securities are valued at historical cost subject to measured at historical cost.e. equity shares lent Option/Put Option date will be taken are valued as per valuation policy for as maturity date for this purpose. Unrealized gains or losses arising If NSE price is not available on a due to change in the fair value particular valuation day. NSE is considered. If NSE price market price provided by CRISIL on is not available on a particular the day when security is classified as valuation day. subject to amortisation of more than one year are valued of premium or accretion of discount. Insurance Business: fund units and AIFs pertaining to shareholders’ investments and non- In case of life and general insurance subsidiaries. State Bank of India | Annual Report 2015-16 221 . including ® Debt Securities including Government government securities are stated at securities with remaining maturity historical cost. For the purpose of determining including Government securities with fair value. the closing price at remaining maturity of less than one primary exchange i. Business (Schedule 5)” respectively. the closing price at primary available NAV. non-linked life insurance business and (ii) Valuation of investment pertaining to general insurance business: - linked business: - ® All debt securities. Debt securities date. earliest Call Borrowing (SLB). amortization of premium or accretion of discount on yield to maturity basis. For the purpose of determining Funds (AIFs) are valued at latest fair value. equity shares as mentioned above. ® Listed equity securities are measured at fair value on the Balance Sheet ® Investment in Alternative Investment date. 1938. as amended by circulars or to Policyholders in Insurance notifications issued by IRDA from time to time. where yield is derived using (‘NSE’) is considered. it is Limited (‘BSE’) is considered. at prices obtained from Credit ® Listed equity securities are measured Rating Information Services of India at fair value on the Balance Sheet Limited (‘CRISIL’). the IRDA (Investment) (Schedule 2)” and “Liabilities relating Regulations. the account remains “out of realisable value of order”. In respect of bills purchased/discounted. or if there are no credits continuously for 90 iii. i. i. 12 months. Upto one year – 25% iv.2 NPAs are classified into Sub-Standard. where the instalment 40% of principal or interest remains overdue for iii. interest and/or ii. power continuously for a period of 90 days. extant guidelines prescribed by the regulatory 3. i. One to three years – short duration crops. Sub-standard: A loan asset that has ® Investments in mutual fund units remained non-performing for a period less are valued at the previous day’s Net than or equal to 12 months. Loan Assets Assets: of 15% on the total become Non-Performing Assets (NPAs) where: outstanding. equity shares lent and Loss Assets. A general provision directives issued by the RBI. portion Loss Assets: 100% 222 State Bank of India | Annual Report 2015-16 . Additional provision instalment of principal remains overdue for of 10% for exposures a period of more than 90 days. ® Unrealized gains or losses arising iii. In respect of agricultural advances (a) for ii.e. units are recognized in the Profit & 3. available – 20%. if the outstanding balance security is not more than exceeds the sanctioned limit/drawing 10 percent ab-initio). ii. -Secured portion: i. which are unsecured ii.e. Doubtful Borrowing (SLB). and (b) for long duration 100% crops.1 Loans and Advances are classified as performing and non-performing. Unsecured Exposure in days as on the date of balance-sheet. ® In case of Security Lending and 3. based on the following criteria are valued as per valuation policy for stipulated by RBI: equity shares as mentioned above.3 Provisions are made for NPAs as per the Loss Account. Loans /Advances and Provisions thereon: authorities. In respect of Overdraft or Cash Credit ab-initio (i. based on the guidelines/ Substandard i. safeguards such as escrow accounts are iii. Asset Value (NAV). In respect of term loans. Doubtful: A loan asset that has remained in ® Unlisted equity securities are the sub-standard category for a period of measured at historical cost. where advances. More than three years – two crop seasons. subject to minimum provisions as prescribed below: 3. where the principal or interest -Unsecured 100% remains overdue for one crop season. the bill remains overdue for a period of Doubtful Assets: more than 90 days. or if respect of infrastructure the credits are not adequate to cover the advances where certain interest due during the same period. Loss: A loan asset where loss has been due to changes in the fair value of identified but the amount has not been fully equity securities and mutual fund written off. if any.4 In respect of foreign offices/entities. 6. namely. Floating Provisions: recorded on accrual basis. The provision is reflected in Schedule addition to provision for the respective loans/ 5 of the Balance Sheet under the head “Other advances. If the country exposure are made in accordance with the guidelines issued (net) of the Bank in respect of each country by the RBI. which require that the difference does not exceed 1% of the total funded assets. provisions per extant RBI guidelines. high. moderate. low. and Loss Account in the period of change. arriving at the Net NPAs. The earlier years are recognised as revenue in the swap contracts entered to hedge on-balance year of recovery. sheet assets and liabilities are structured in such 3. 3.2 Derivative contracts classified as hedge are 4. bills rediscounted. These items. a way that they bear an opposite and offsetting general provisions are also made for standard impact with the underlying on-balance sheet assets as per extant RBI Guidelines. between the fair value of the loan/advances no provision is maintained on such country before and after restructuring is provided for. the 5. The impact of such derivative instruments provisions are reflected in Schedule 5 of the is correlated with the movement of the underlying Balance Sheet under the head “Other Liabilities assets and accounted in accordance with the & Provisions – Others” and are not considered for principles of hedge accounting. to the asset classification status. restricted and off-credit and provisioning made as 3. swaps and forward rate agreements in order to hedge on-balance sheet/off-balance sheet 3. is reduced from advances. insignificant.8 Amounts recovered against debts written off in assets and liabilities or for trading purposes.6 For restructured/rescheduled assets. In respect of derivative under extra ordinary circumstances specified in contracts that are marked to market. investments and general purposes. provisions are also made for individual country exposures 3. Derivatives: 3.1 The Bank enters into derivative contracts.9 In addition to the specific provision on NPAs. Hedge contracts are not marked to market unless the underlying The Bank has a policy for creation and utilisation Assets / Liabilities are also marked to market.7 In the case of loan accounts classified as NPAs. and cross currency interest rate by the regulators. changes the policy with prior permission of Reserve Bank in the market value are recognised in the Profit of India. ECGC claims received and categorised into seven risk categories. interest rate swaps.5 Advances are net of specific loan loss provisions. The quantum 6. such an account may be reclassified as a performing as foreign currency options. in exposures. (other than the home country). Countries are unrealised interest. The floating Generally Accepted Accounting Practices provisions are utilised only for contingencies prevalent in the industry. all other derivative of floating provisions to be created is assessed contracts are marked to market as per the at the end of the financial year. 6.3 Except as mentioned above. of floating provisions separately for advances. arising out of the above. 6. which State Bank of India | Annual Report 2015-16 223 . The Provision for Diminution in Fair liabilities & Provisions – Others”. Any receivable under derivatives contracts. whichever In addition to the specific provisions held according is more stringent. very high. Provision for Country Exposure for Banking classification of loans and advances and Entities: provisions for NPAs are made as per the local regulations or as per the norms of RBI. Value (DFV) and interest sacrifice. asset if it conforms to the guidelines prescribed currency swaps. 33% every contract is not terminated on the overdue Method year receivables remaining unpaid for 90 days. Vehicles 5 Years Safe Deposit 7. the 2 Computer Straight Line 33.00% every in the case of assets which have been revalued.Crystallised Receivables”.00% every the resultant gains and losses are recognized in Machine/ Cash Method year the Profit and Loss Account. 224 State Bank of India | Annual Report 2015-16 . Fixed Assets Depreciation and Amortisation: / Coin Vending Machine 7. 7 Other fixed assets Straight Line On the basis of Method estimated useful 7. Method year The accumulated depreciation/amortisation is 6 Network Straight Line 20. remain overdue for more than 90 days.00% every reduced from the cost/revalued amount. Deposit Machine/ Coin Dispenser 7.33% every positive MTM pertaining to future receivables is Software forming Method year also reversed from Profit and Loss Account to an integral part “Suspense Account . of the Computer hardware 6. Description of Method of Depreciation/ reversed through Profit and Loss Account to No. depreciation In cases where the derivative contracts provide for more settlement in future and if the derivative 1 Computers Straight Line 33.4 Option premium paid or received is recorded 3 Computer Straight Line 33. installation costs and Estimated useful professional fees incurred on the asset before it life of major group is put to use.Positive MTM”.4 In respect of assets acquired during the year for domestic operations. are Sr. depreciation is charged on proportionate basis for the number of days assets have been put to use during the year.5 Exchange Traded Derivatives entered into for Development trading purposes are valued at prevailing market rates based on rates given by the Exchange and 4 Automated Teller Straight Line 20. The Equipment Method year appreciation on revaluation (if any) is credited to Revaluation Reserve.2 Cost includes cost of purchase and all expenditure life of the assets such as site preparation. hardware and cost of Software 6.3 The rates of depreciation and method of charging Lockers 20 Years depreciation in respect of domestic operations Furniture & are as under: Fixtures 10 Years 7.33% every in Profit and Loss Account at the expiry of the Software which Method year option. Fixed Assets charging amortisation rate “Suspense Account . Subsequent expenditure/s incurred of Fixed Assets on the assets put to use are capitalised only when are as under: it increases the future benefits from such assets Premises 60 Years or their functioning capability.1 Fixed Assets are stated at historical cost except 5 Servers Straight Line 25. The balance in the premium received on does not form options sold and premium paid on options bought an integral part is considered to arrive at Mark to Market value for of Computer forex Over the Counter (OTC) options. 7 In respect of assets given on lease by the Bank date of the transaction. respective year (s). on or before 31st March 2001. are re-valued at the closing spot rate. the impairment to be arise.6 In respect of leasehold premises. The 9. and the difference foreign currency are reported using the between the annual lease charge (capital FEDAI closing spot rates. the lease closing (spot/forward) rates. Exchange differences arising on the financial assets held and used is measured by settlement of monetary items at rates a comparison of the carrying amount of an asset different from those at which they were to future Net Discounted Cash Flows expected initially recorded are recognised as income to be generated by the asset. recognised is measured by the amount by which viii. Foreign currency non-monetary items. premium. are reported using the exchange rate on the 7. If such assets are or as expense in the period in which they considered to be impaired. recovery) and the depreciation is taken to Lease v. as laid down in Para 3 outstanding on the Balance Sheet date. the value of the assets given on lease is disclosed as Leased iv.1 Foreign Currency Transactions 10.5 Assets costing less than ` 1. Recoverability of other vii. Gains / Losses on account of changes the carrying amount of the asset exceeds the fair in exchange rates of open position in value of the asset. resulting Profit or Loss is recognised in the Profit and Loss account. forward contracts held for trading are 7. Foreign currency monetary items are charged off in the year of purchase. Effect of changes in the foreign exchange exchange clearing house on daily basis rate: and such gains/losses are recognised in the Profit and Loss Account. 8. warrant that the carrying amount of an asset may not be recoverable. which are carried at historical cost. State Bank of India | Annual Report 2015-16 225 .8 In respect of fixed assets held at foreign offices/ revalued at the exchange rates notified entities.2 Foreign Operations: i. Contingent liabilities denominated in Assets under Fixed Assets. Impairment of Assets: premium or discount arising at the inception of such a forward exchange contract is Fixed Assets are reviewed for impairment amortised as expense or income over the whenever events or changes in circumstances life of the contract. if any. is amortised over the period of lease and the lease rent is charged in the iii. Leases: vi. currency futures trades are settled with the 10. above. Foreign exchange forward contracts The asset classification and provisioning norms which are not intended for trading and are applicable to advances. as Integral Operations. Outstanding foreign exchange spot and Equalisation Account.000 each are ii. 7. reported using the Foreign Exchange Dealers Association of India (FEDAI) 7. Foreign currency transactions are recorded on initial recognition in the reporting Foreign Branches/ Subsidiaries / Joint Ventures currency by applying to the foreign currency of the Bank and Offshore Banking Units (OBU) amount the exchange rate between the have been classified as Non-integral Operations reporting currency and the foreign currency and Representative Offices have been classified on the date of transaction. and the regulations /norms of the respective countries. 10. depreciation is provided as per the by FEDAI for specified maturities. are applied to financial leases also. Foreign currency transactions are recorded Gratuity and Pension schemes. Income and expenditure of non-integral service. is provided Balance Sheet date. contributions to a fund administered by Trustees based on an independent external iii. monthly at a determined rate (currently 10% of employee’s basic pay plus eligible iv. Foreign currency non-monetary items actuarial valuation carried out annually. Exchange differences arising on investment a. Employee Benefits: i. if any. The benefit is in the form of monthly payments as per 226 State Bank of India | Annual Report 2015-16 . a. Monetary foreign currency assets and while in employment. All eligible employees are entitled accumulated in Foreign Currency to receive benefits under the Provident Translation Reserve until the disposal of Fund scheme. The Bank operates a Provident Fund in non-integral foreign operations are scheme. Both monetary and non-monetary foreign 11.1 Short Term Employee Benefits: currency assets and liabilities including The undiscounted amounts of short-term contingent liabilities of non-integral foreign employee benefits. The Bank recognizes such annual are translated into local currency using contributions as an expense in the year to spot rates applicable to that country on the which it relates. to all eligible employees. Integral Operations: b. subject to a Balance Sheet date and the resulting maximum amount of ` 10 Lacs. for an amount equivalent are translated at closing (Spot/Forward) to 15 days basic salary payable for each exchange rates notified by FEDAI at the completed year of service. Shortfall. The group entities provide for gratuity to amount the exchange rate between the all eligible employees. or on termination liabilities of integral foreign operations of employment. Contingent Liabilities are of service. These contributions are subsidiaries /joint ventures in foreign remitted to a Trust established for this currency (other than local currency of the purpose and are charged to Profit and Loss foreign offices/subsidiaries/joint ventures) Account. The Bank contributes the investment. Defined Benefit Plan iii. i. foreign operations are translated at 11.2 Long Term Employee Benefits: quarterly average closing rates notified by FEDAI. during the period when the employee renders the ii. Vesting Profit/Loss is included in the Profit and occurs upon completion of five years Loss Account. The Assets and Liabilities of foreign offices/ allowance). such as medical benefits. employees on retirement or on death ii. Some group entities provide for pension date of the transaction. Non-integral Operations: 11. currency by applying to the foreign currency c. b. The Bank makes periodic translated at Spot rate. which are carried at historical cost are reported using the exchange rate on the d. The benefit is in reporting currency and the foreign currency the form of lump sum payments to vested on the date of transaction. for on the basis of actuarial valuation. which are on initial recognition in the reporting defined benefit plans. operations are translated at closing which are expected to be paid in exchange for the exchange rates notified by FEDAI at the services rendered by employees are recognised Balance Sheet date. The group entities operate separate i. the consolidated profit and loss account. recognised in the Profit and Loss and is not e. The current Scheme (NPS) for all officers/ employees tax expense and deferred tax expense are joining the Bank on or after 1st August. which is a defined contribution the Income Tax Act. rules to vested employees on retirement employee benefits are internally funded by or. The impact of changes in deferred Upon receipt of the Permanent Retirement tax assets and liabilities is recognised in the Account Number (PRAN). such new joinees not being entitled Standard 22 – Accounting for Taxes on Income to become members of the existing SBI respectively after taking into account taxes paid Pension Scheme. sheet date. 12. certainty supported by convincing evidence that retirement award and resettlement such deferred tax assets can be realised against allowance. date. contribution from the Bank. or on the group entities. with actuarial valuations being employed at foreign offices/ entities are valued carried out at each balance sheet date. Pending Deferred tax assets and liabilities are recognised completion of registration procedures by considering the impact of timing differences of the employees concerned.3 Employee benefits relating to employees method. termination of employment. Deferred tax assets are contribution amounts are transferred to the recognised and re-assessed at each reporting NPS Trust. Defined Contribution Plans: Income tax expense is the aggregate amount of current tax. the Bank and earn interest at the same rate as that of the current account of Provident Deferred tax assets and liabilities are measured Fund balance. State Bank of India | Annual Report 2015-16 227 . The Bank recognizes such using tax rates and tax laws that have been annual contributions and interest as an enacted or substantively enacted at the balance expense in the year to which they relate. 1961 and as per Accounting plan. The costs of such long term future profits. determined in accordance with the provisions of 2010. these between taxable income and accounting income contributions are retained as deposits in for the current year. All eligible employees of the Group are recognised on carry forward of unabsorbed eligible for compensated absences. based upon management’s judgement as to whether their realisation is considered as iii. Vesting occurs b. and carry forward losses. on death while in employment. leave travel concession. The cost of providing defined benefits is deferred. The entities benefits is determined using the projected make contributions to funds administered unit credit method with actuarial valuations by trustees based on an independent being carried out at each Balance Sheet external actuarial valuation carried out date. The cost of providing other long term at different stages as per rules. deferred tax and fringe benefit The Bank operates a New Pension tax expense incurred by the Group. silver depreciation and tax losses only if there is virtual jubilee award. As per the scheme. Taxes on income ii. and accounted for as per the respective local Actuarial gains/losses are immediately laws/regulations. at the foreign offices/entities. which are based on the covered employees contribute 10% of the tax laws of respective jurisdiction. determined using the projected unit credit 11. Deferred their basic pay plus dearness allowance Tax adjustments comprises of changes in the to the scheme together with a matching deferred tax assets or liabilities during the year. Other Long Term Employee benefits: reasonably certain. Deferred Tax Assets are a. Past service cost is immediately annually. recognised in the Profit and Loss and are not deferred. Provisions. or 228 State Bank of India | Annual Report 2015-16 . Contingent Liabilities and earns a fee on such bullion transactions. a reliable estimate of the amount of expenses are the aggregate of the amounts of obligation cannot be made. or 17. settle the obligation. In Consolidated Financial Statement. The Bank 14. issued by the treated as deposits/advances as the case may Institute of Chartered Accountants of India. These are assessed ventures. income tax b. any present obligation that arises from past events but is not recognised because Share issue expenses are charged to the Share Premium Account. 1961.4 Contingent Assets are not recognised in the 13. The Bank 14. The Board of Directors past events and the existence of which will have passed a resolution approving creation be confirmed only by the occurrence or of the Reserve and confirming that it has no non-occurrence of one or more uncertain intention to make withdrawal from the Special future events not wholly within the control Reserve.1 The Bank reports basic and diluted earnings is provided for. Special Reserves: 14. Earnings per Share: obligation for which an outflow of resources embodying economic benefits is probable. except in the extremely rare per share in accordance with AS 20 -‘Earnings circumstances where no reliable estimate per Share’ issued by the ICAI. tax expense appearing in the separate financial Such obligations are recorded as statements of the parent and its subsidiaries/joint Contingent Liabilities. the be with the interest paid/received classified as Bank recognises provisions only when it has a interest expense / income. Metal present obligation as a result of a past event and Loan Advances and closing Gold Balances are would result in a probable outflow of resources valued at available Market Rate as on the date of embodying economic benefits will be required to Balance Sheet. 16. to-back basis and are priced to the customer based on price quoted by the supplier. of the group entities . The imports are typically on a back- potential equity shares outstanding at year end. The fee Contingent Assets: is classified under commission income. it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation. a. 14. outstanding for the year. any possible obligation that arises from Income Tax Act.3 Provision for reward points in relation to the debit equity shareholders (other than minority) by card holders of the Bank is being provided for on the weighted average number of equity shares actuarial estimates. Gold Deposits. Share Issue Expenses: ii. which is Liabilities and Contingent Assets”. Basic Earnings can be made. Diluted Earnings The Bank imports bullion including precious metal per Share are computed using the weighted bars on a consignment basis for selling to its average number of equity shares and dilutive customers. at regular intervals and only that part of the 13. as per their applicable laws. Bullion Transactions: contracts to issue equity shares were exercised or converted during the year. per Share are computed by dividing the Net Profit after Tax for the year attributable to 14. “Provisions. and when a reliable estimate of the amount of the obligation can be made. 13. Contingent also accepts deposits and lends gold.1 In conformity with AS 29.2 Diluted Earnings per Share reflect the potential financial statements.2 No provision is recognised for Revenue and other Reserve include Special Reserve created under Section 36(i)(viii) of the i. dilution that could occur if securities or other 15. 00 9) SBICAP Ventures Ltd.00 100.00 100. @ India 60. Ltd.00 100.00 3) State Bank of Mysore India 90.00 18) State Bank of India (California) USA 100.60 96. Singapore 100.91 6) SBI Capital Markets Ltd.00 17) SBI Canada Bank Canada 100.60 92. considered in the preparation of the consolidated financial statements. @ India 74.1 The 30 Subsidiaries. Nepal 55.09 78. 8 Joint Ventures and 20 Associates including 18 Regional Rural Banks (which along with State Bank of India. Ltd.00 @ Represents companies which are jointly controlled entities in terms of the shareholders’ agreement.K.58 71.00 24) SBI Cards and Payment Services Pvt.00 90.00 74.00 26) SBI Life Insurance Company Ltd.00 25) SBI Funds Management Pvt. @ Mauritius 63. However.00 74.58 11) SBI Mutual Fund Trustee Company Pvt Ltd. @ India 65.00 100. Ltd. India 71.00 99.00 - 23) SBICAP (UK) Ltd.00 100.00 100.00 19) SBI (Mauritius) Ltd. India 100.00 65. Ltd. Mauritius 96.10 55. Country of Current Year Previous Year incorporation 1) State Bank of Bikaner and Jaipur India 75.00 100.00 30) SBICAP (Singapore) Ltd. India 92. the parent. U. Moscow @ Russia 60. constitute the Group). @ India 74.07 75.00 63. List of Subsidiaries/Joint Ventures/Associates considered for preparation of consolidated financial statements: 1.00 100.00 4) State Bank of Patiala India 100.00 16) SBI Payment Services Pvt.00 7) SBICAP Securities Ltd. India 100. India 100. India 100.00 15) SBI General Insurance Company Ltd.00 27) Commercial Indo Bank Llc .10 29) SBI Funds Management (International) Private Ltd.18 13) SBI Pension Funds Pvt Ltd. @ India 63.00 100.00 63.SCHEDULE – 18: NOTES TO ACCOUNTS 1. 100. India 86.00 28) Nepal SBI Bank Ltd. India 100.00 22) State Bank of India Servicos Limitada Brazil 100.00 100. the same are consolidated as subsidiaries in accordance with AS 21 “Consolidated Financial Statements” as SBI’s holding in these companies exceeds 50%. India 100.00 60.00 100. State Bank of India | Annual Report 2015-16 229 .00 12) SBI Global Factors Ltd. are A) Subsidiaries: S.00 60.18 86.00 21) Bank SBI Botswana Limited Botswana 100.00 100.00 8) SBICAP Trustee Company Ltd.60 14) SBI–SG Global Securities Services Pvt. Name of the Subsidiary Group’s Stake (%) No.00 5) State Bank of Travancore India 79.00 100.00 10) SBI DFHI Ltd.60 20) PT Bank SBI Indonesia Indonesia 99.07 2) State Bank of Hyderabad India 100. B) Joint Ventures: S.00 35.50 18) Malwa Gramin Bank India 35.00 230 State Bank of India | Annual Report 2015-16 .00 Pvt.00 3) Chhattisgarh Rajya Gramin Bank India 35.00 6) Langpi Dehangi Rural Bank India 35.00 35.00 2) GE Capital Business Process Management Services Pvt India 40.00 45. Ltd.00 35.00 7) Oman India Joint Investment Fund – Management India 50.00 35. India 24. Bermuda 45. Ltd.00 35.00 35.27 26. Name of the Joint Venture Group’s Stake (%) No.00 35.Edge Technologies Ltd.00 10) Purvanchal Bank India 35.00 35.00 8) Mizoram Rural Bank India 35.00 35.00 35.00 13) Vananchal Gramin Bank India 35.00 50. Singapore 45.00 50. Bhutan 20.00 14) Saurashtra Gramin Bank India 35.00 17) Kaveri Grameena Bank India 31.50 31.00 35. 8) Oman India Joint Investment Fund – Trustee Company India 50.00 5) Macquarie SBI Infrastructure Management Pte.00 7) Madhyanchal Gramin Bank India 35.27 16) Telangana Grameena Bank India 35.00 19) The Clearing Corporation of India Ltd. Ltd. Ltd.00 15) Rajasthan Marudhara Gramin Bank India 26. Country of Current Year Previous Year Incorporation 1) C .00 4) Ellaquai Dehati Bank India 35.00 5) Meghalaya Rural Bank India 35.00 35. India 49.00 9) Nagaland Rural Bank India 35. India 45.00 35.00 45. India 45.00 45. Name of the Associate Group’s Stake (%) Country of Current Year Previous Year Incorporation 1) Andhra Pradesh Grameena Vikas Bank India 35.00 11) Utkal Grameen Bank India 35.00 35. Ltd.00 4) SBI Macquarie Infrastructure Trustee Pvt.00 40.00 35.22 20) Bank of Bhutan Ltd.00 Ltd.00 35. C) Associates: S.00 20.00 Company Pvt.42 29.00 2) Arunachal Pradesh Rural Bank India 35.00 6) Macquarie SBI Infrastructure Trustee Ltd.00 12) Uttarakhand Gramin Bank India 35. No.00 45.00 49. 3) SBI Macquarie Infrastructure Management Pvt. 959. SBI received application money of India Ltd.80% stake in The Clearing Corporation 2.91% to 79. 7(2) of the ` 9.2008 but allotment of which was kept in abeyance.4 Expenses in relation to the issue of shares ` 8. since they are subject to title disputes of Consolidated Financials of the Group.21. issued as a part of the Right Issue .3 9. The name of “State Bank of India (Canada)” a Foreign Banking Subsidiary (FBS) of SBI crore including share premium of ` 2.20% and group’s stake reduced from crore (Previous Year ` 2.81. as a subsidiary of SBI on June 26. is under liquidation. 2015. and 7 Regional Rural Banks).720 Equity Shares of ` 1 each that had been 16. issue of 10. has started its equity shares were allotted on April 1. State Bank of India | Annual Report 2015-16 231 .2 SBI received application money of ` 2. 2016. operations during the financial year 2015- 2.09%. July 1. The name of “State Bank of India of 19. SBI Home Finance Ltd. 2015.65.00. 2015. 2015. to focus on the CSR and ` 15.26 crore having face value of ` 10 each at a premium of ` 390 per share Bhutan Ltd. an associate Premium Account. e . thus included in Consolidated Financial Statements. SBI has sold its 4.59.00 which SBI’s stake reduced from 26.95 crore has been changed to “SBI Canada Bank” from Government of India against preferential w.22% to 24. 2015 and amount of was incorporated under Sec.012 equity shares of ` 1 each to Government of India on March 31. Government of India against preferential issue c.970. In the month of March 2016. a.1 During the year.77.393.720.2 The consolidated financial statements for the of Travancore.35. State Bank of India Servicos Limitada.00 d. or are subjudice.030 (Previous Year 8.66 shares having face value of ` 10 each. State Bank 1. a Domestic Banking financial year 2015-16 of the Group includes Subsidiary (DBS) of SBI has allotted unaudited financial statements of one subsidiary 94. SBI Foundation is not in abeyance is 8.04. 2. SBI Foundation.05% stake.959. SBI has infused ` 1 crore as capital in the month of August 2015 against 10. f.34 to 21.012) (Botswana) Limited” a Foreign Banking equity shares of ` 1 each to Government of India. thus not considered in Consolidated Financial Statements. 29. In the month of April 2015. Subsidiary (FBS) of SBI has been changed The equity shares were allotted on September to “Bank SBI Botswana Limited” w.518 equity shares to SBI of worth (SBI Canada Bank) and 8 associates (Bank of ` 379. March 1. a Foreign Subsidiary of SBI. the under Right Issue and the stake of SBI has results of which are not material. in which SBI is having 25. As it is a Not-for.970. (a Not-for-Profit Company) were allotted on July 16.95 crore) from 29. Balance of such shares issued and kept Profit Company.77.30.00 crore (Previous Year ` 2.00 credited to Share Capital Account Companies Act 2013.42%. 2015.f.04. 2.00% crore). (an associate of SBI) after of ` 5.750) considered for consolidation in preparation of ` 1 each. including share premium of ` 5. The e.390 (Previous Year 10..760. Account. Share capital: b.00 credited to Share Premium activities of the Group.f.373. e . increased from 78.000 2. crore (Previous Year ` Nil) is debited to Share g. 74) (1.61 778.341.362.070.94 9.63 5.903.29 Closing fair value of plan assets at 31st March 2016 66.31) (794.24 9.216.529.91 256.350.16 529.164.529.322.276.52 180.74) (1.341.362.886.146.82 9.249.56 9.42 648.82 36.164.43 833.10 Change in Plan Assets Opening fair value of plan assets at 1st April 2015 61.02) Actuarial losses /(gains) 6.16 Amount Recognised in the Balance Sheet Liabilities 73.561.643.437.24 9.43 833.1 Employee Benefits: 3.886.10 Fair Value of plan assets at 31st March 2016 66.813.246.10 0.38 64.56 56.331.47 652.176.909.24 9.350.26 219.97 61.45 Interest Cost 5.39) Actuarial Gains / (Losses) on plan assets (70.60 Benefits Paid (2.72 9.98 Current Service Cost 1.63 471.360.16) (1.665.1.56 9.72) (2.813.561.52 180.898.14 53. Disclosures as per Accounting Standards 3.31 794.26 219.164.56 9.16 Unrecognised Past Service Cost (Vested) Closing Balance Nil Nil Nil Nil Net Liability/(Asset ) 6.72) (2.52 180.41 2.41 2.41 2.1 Defined Benefit Plans 3.91 256.26) (1.362.350.94 Deficit/(Surplus) 6.53 5.03 (0.249.57 232 State Bank of India | Annual Report 2015-16 .11 Contributions by employer 2.22) Nil Nil Closing defined benefit obligation at 31st March 2016 73.63 5.276.94 Net Liability / (Asset) recognised in Balance Sheet 6.16 Net Cost recognised in the profit and loss account Current Service Cost 1.17 3.38 64.665.53 383.05 9.54 1.731.33 Expected Return on Plan assets 5.216.543.886.11) Past Service Cost (Amortised) Recognised Nil 187.14 9.529.070.146.97 61.72 9.360.813.083.94 Benefits paid (2.52 180.719.10 Assets 66.898.543.362.863.543.14 9.61 778.529.1 Employee’s Pension Plans and Gratuity Plans The following table sets out the status of the Defined Benefit Pension Plans and Gratuity Plan as required under AS 15 (Revised 2005) :- ` in crore Particulars Pension Plans Gratuity Plans Current Year Previous Year Current Year Previous Year Change in the present value of the defined benefit obligation Opening defined benefit obligation at 1st April 2015 64.643.643.543.58 107.249.45 Interest Cost 5.898.72 9.03 51.23) (798.3.14 Past Service Cost (Vested Benefit) Nil Nil 0.42 648.54 1.14 9.42 648.1.46) (4.16 Unrecognised Past Service Cost (Vested) Closing Balance Nil Nil Nil Nil Net Liability/ (Asset) 6.143.206.26) (1.643.97 61.719.14 Expected return on plan assets (5.41 2.350.46 4.1.42 648.331.94 Reconciliation of present value of the obligation and fair value of the plan assets Present Value of funded obligation at 31st March 2016 73.10 9.39) Direct Payment by SBI (2.38 64.23 798.886.08) 2. 22) Nil Nil Employer’s Contribution (2.86% Others 5.903. which has been relied upon by the auditors. 2016 are as follows: Category of Assets Pension Fund Gratuity Fund % of Plan % of Plan Assets Assets Central Govt. Such estimates are very long term and are not based on limited past experience / immediate future.51% 4.10% 8.89 901.341.16 (80.00% to 9.00% to 5.65 615. taking account of inflation.31 794.00% to 5.00% The estimates of future salary growth.11 Actuarial Gains/ (Losses) on Plan Assets (70. State Bank of India | Annual Report 2015-16 233 .979.58 422.55% Total 100.157.65% Debt Securities.21% Expected Rate of return on Plan Asset 8.21% 7.82 36. Money Market Securities and Bank Deposits 39.731.13 180.00% 7.53) (383.275.532.70 “Payments to and provisions for employees” Reconciliation of expected return and actual return on Plan Assets Expected Return on Plan Assets 5. consistent high salary growth rates are not possible.04 851.08) 2.746.46 4.86% to 9.00% Salary Escalation 5.38 7.00% to 5.40 Reconciliation of opening and closing net liability/ (asset) recognised in Balance Sheet Opening Net Liability/(Asset) as at 1st April 2015 2.61 2.322.00% to 9.41 2. Empirical evidence also suggests that in the very long term.99 732.10% 8.21% 28.00% 5.79% 29.30% 14.719. promotion and other relevant factors such as supply and demand in the employment market. Securities 22.21% to 9.00% to 5.42 3. factored in actuarial valuation.52 180.04 851.17) (3.16) (1.00% 5.275.645.00% 8.746.350.643.60) Past Service Cost Nil Nil Nil Nil Net liability/(Asset) recognised in Balance Sheet 6.23 798.45% State Govt.99 732.246.42 648.49% Insurer Managed Funds 1. seniority.00% 100.63) (471.58 107.16 Investments under Plan Assets of Gratuity Fund & Pension Fund as on March 31.643.32 4.32 4.271.94) Expenses as recognised in profit and loss account 8. Securities 31.65 Total costs of defined benefit plans included in Schedule 16 8.00% 5.00% to 8.Particulars Pension Plans Gratuity Plans Current Year Previous Year Current Year Previous Year Past Service Cost (Vested Benefits) Recognised Nil Nil Nil Nil Net Actuarial Losses / (Gains) recognised during the year 6.29 Actual Return on Plan Assets 5.05 834.00% 8.19% 22.21% to 8.70 Paid by SBI Directly (2.00% Principal actuarial assumptions: Particulars Pension Plans Gratuity Plans Current year Previous year Current year Previous year Discount Rate 8.437.21% to 8.86% to 8. 09 Contributions 3.498.62) (699.01 - Benefits paid (2. The following table sets out the status of Provident Fund as per the actuarial valuation by the independent Actuary appointed by SBI:- ` in crore Particulars Provident Fund Current Year Previous Year Change in the present value of the defined benefit obligation Opening defined benefit obligation at 1st April 2015 22. 2015-16.14 for employees” Reconciliation of opening and closing net liability/ (asset) recognised in Balance Sheet Opening Net Liability as at 1st April 2015 .363.09) Interest shortfall reversed .197.67 661.026.14 Interest Cost 2.72 1.51 Change in Plan Assets Opening fair value of Plan Assets as at 1st April 2015 23.615.80 Benefits Paid (2. as per Deterministic Approach shows “Nil” liability.43) (2.72 1.09 Employee Contribution (including VPF) 1. - Total costs of defined benefit plans included in Schedule 16 “Payments to and provisions 1.51 Fair Value of Plan assets at 31st March 2016 25.70 22.2 Employees Provident Fund Actuarial valuation carried out in respect of interest shortfall in the Provident Fund Trust of SBI. - Expense as above 1.498.983.981. hence no provision is made in F.026.77) Actuarial Gains / (Loss) on plan Assets 126.22 527.632.14 Employer’s Contribution (1.22 527.51 21.632.985.869.43) (2.31 Net Cost recognised in the profit and loss account Current Service Cost 1.188.77) Closing defined benefit obligation at 31st March 2016 25.32 23.1.1.32 137.22 527.3.28 Closing fair value of plan assets as at 31st March 2016 25.366.89 1.14 Interest Cost 2.804.42 Expected Return on Plan Assets 2.22) (527.39 Current Service Cost 1.197.026.498.159.82 Reconciliation of present value of the obligation and fair value of the plan assets Present Value of Funded obligation at 31st March 2016 25.985.869.22 527.869.197.31) Net Asset not recognised in Balance Sheet 825.363.981.632.Y.66 Actuarial losses/(gains) 0.869.72 1.82 22.82 Deficit/(Surplus) (825.632.09 Expected return on plan assets (2. - 234 State Bank of India | Annual Report 2015-16 .159.026.32 23.72) (1.632.14) Net Liability/(Asset) Recognized In the Balance Sheet .70 22.62 699. 55% Debt Securities.00% 5.Investments under Plan Assets of Provident Fund as on March 31.32 crore (Previous Year ` 200.00% Principal actuarial assumptions Particulars Provident Fund Current year Previous year Discount Rate 7.75% Attrition Rate 2. the scheme is applicable to all categories of officers and employees who join on or after April 01. 3. The Scheme is managed by NPS Trust under the aegis of the Pension Fund Regulatory and Development Authority.2 Defined Contribution Plans 3. Fund has been crediting the interest at the rate of interest as declared under Employees Provident Fund and Miscellaneous Provisions Act 1952 and hence treated as a defined benefit plan.1.86% 8.2 Defined Contribution Pension Scheme The Defined Contribution Pension Scheme (DCPS) is applicable to all categories of officers and employees joining the SBI on or after August 01.30 crore) is contributed towards the Provident Fund Scheme by the group (excluding SBI) and is included under the head “Payments to and provisions for employees” in Profit and Loss Account. 2016 are as follows: Provident Fund Category of Assets % of Plan Assets Central Govt. State Bank of India | Annual Report 2015-16 235 .00% Mortality Table IALM (2006-08) IALM (2006-08) ULTIMATE ULTIMATE There is a guaranteed return applicable to liability under SBI Employees Provident Fund. Money Market Securities and Bank Deposits 34. 2010.36% State Govt.1 Employees Provident Fund An amount of ` 36. 2010 and for Domestic Banking Subsidiaries.15% Insurer Managed Funds - Others 4.75% 8. Securities 40.1.00% 2.10 crore) has been contributed in the scheme.2.2.00% Salary Escalation 5. National Securities Depository Limited has been appointed as the Central Record Keeping Agency for the NPS. an amount of ` 266.94% Total 100. 3.21% Guaranteed Return 8.1. During the year.98 crore (Previous Year ` 33. Securities 20. 1.21% Salary Escalation 5.00) Net Liability/(Asset) recognized in the Balance Sheet 4.49 3.50 3.3 Other Long term Employee Benefits (Unfunded Obligation) 3.00% Mortality Table IALM (2006-08) IALM (2006-08) ULTIMATE ULTIMATE 236 State Bank of India | Annual Report 2015-16 .079.64 681.3.105.47 Current Service Cost 230.00) Closing defined benefit obligation at 31st March 2016 4.62 Actuarial (Gain)/ Losses 590.129.99 1.86 Total costs of defined benefit plans included in Schedule 16 “Payments to and provisions 1.756.50 3.1 Accumulating Compensated Absences (Privilege Leave) The following table sets out the status of Accumulating Compensated Absences (Privilege Leave) of SBI as per the actuarial valuation by the independent Actuary:- ` in crore Particulars Accumulating Compensated Absences (Privilege Leave) Current Year Previous Year Change in the present value of the defined benefit obligation Opening defined benefit obligation at 1st April 2015 3.00) (428.94 135.079.47 Expense as above 1.756.41 287.55 Interest Cost 308.375. - Benefit paid directly by the Employer (511.00% Attrition Rate 2.62 Actuarial losses/(gains) 590.375.00) (428.50 Principal actuarial assumptions Particulars Current year Previous year Discount Rate 7.756.99 1.00% 2.50 Net Cost recognised in the profit and loss account Current Service Cost 230.00% 5.64 681.94 135.86 Benefits paid (511.03 Employer’s Contribution .105.03 for employees” Reconciliation of opening and closing net liability/ (asset) recognised in Balance Sheet Opening Net Liability as at 1st April 2015 3.86% 8.129.41 287.3.49 3.55 Interest Cost 308.756.1. 85 (21. Benefits on the investment portfolio.2 Other Long Term Employee Benefits The present accounting and information system of the Bank does not support capturing and extraction of Amount of ` 21. and SBI General Insurance Co. The revenue of the treasury segment primarily consists of fees and gains Sl.2.Accumulating Compensated Absences (Privilege Leave) - Treasury (excluding SBI) - Corporate / Wholesale Banking An amount of ` 167.78 crore (Previous Year ` 124. - Other Banking Business 3.35 crore (Previous Year ` 12. organisational Employee Benefits and is included under the head and management reporting structure and the nature of “Payments to and provisions for employees” in Profit their risk and returns. A) Primary (Business Segment) e) Other Banking business– Segments not classified The following are the Primary Segments of the under (a) to (d) above are classified under this primary Group: segment.1. This segment also includes agency the above schemes.74 13. investment portfolio and trading in foreign exchange ` in crore contracts and derivative contracts. These include providing loans and transaction Term Service Award services to corporate and institutional clients and 4 Resettlement Expenses 2. 1 Leave Travel and Home 25.11 11.2 Segment Reporting: d) Insurance Business – The Insurance Business Segment comprises of the results of SBI Life Insurance 3.92) 3.1 Segment identification Co.26 crore) - Retail Banking is provided by the group (excluding SBI) towards Privilege Leave (Encashment) including leave encashment at the time - Insurance Business of retirement and is included under the head “Payments to and provisions for employees” in Profit and Loss Account.37 comprises of branches in National Banking Group. is provided by the group towards other Long Term However.15 Group.55 which primarily includes Personal Banking activities 3. the data on the Primary Segments and Loss Account.35 12. Ltd. Ltd. The having banking relations with branches in the National employees of the foreign operations are not covered in Banking Group.1.23 further include non treasury operations of foreign on Superannuation offices/entities. have been computed as under: Details of Provisions made for various Other Long Term a) Treasury: The Treasury Segment includes the entire Employees’ Benefits during the year. This segment also includes the operations of all the Non-Banking Subsidiaries/Joint Ventures State Bank of India | Annual Report 2015-16 237 .46 Accounts Group and Stressed Assets Management 3 Silver Jubilee/Long 3. based on the present internal. Mid Corporate 2 Sick Leave (1. business and ATMs. 5 Casual Leave Nil Nil c) Retail Banking: The Retail Banking Segment 6 Retirement Award (8.66) Travel Concession b) Corporate / Wholesale Banking: The Corporate / (Encashment/ Wholesale Banking segment comprises the lending Availment) activities of Corporate Accounts Group.4 The employee benefits listed above are in respect including lending activities to corporate customers of the employees of the Group based in India. Total 21. 3.55 crore) the data in respect of the above segments separately. Long Term Employees’ Current Year Previous Year or losses from trading operations and interest income No.43) 6.3. 57) Taxes 5.11) (2.79) Unallocated Revenue 1.044.87) (18.71.88) (4. Market related Funds Transfer Pricing (MRFTP) is followed Revenue.55 1.271.50 (8.28 Associates and Minority Interest (17. Ltd.02 4.72. 3.517. Ltd. The Funding Centre notionally buys funds that the Insurance Co.57.800.40 20. Expenses not directly attributable are allocated on the basis of the ratio The Retail Banking segment is the primary resource of number of employees in each segment/ratio of directly mobilising unit.51 Expenses(–) net (-3.88 2.854. The Corporate/Wholesale Banking and attributable expenses.Branches.870.20) Extraordinary Profit - (-) Net Profit before share in profit in 12.2. Subsidiaries and Joint Expenses of parent incurred at Corporate Centre Ventures having operations outside India and offshore establishments directly attributable either to Corporate / Banking units having operations in India. are allocated accordingly. other than SBI Life Insurance Co.62 (1.78 (25. a) Domestic Operations .72) Total Revenue 2. business units raise in the form of deposits or borrowings and notionally sell funds to business units engaged in creating B) Secondary (Geographical Segment): assets.375.51) (843.059.97) Profit Before Tax 18.936.361.54) Unallocated Income(+)/ -2.54 86.196.542.337. Assets and Joint Ventures having operations in India.21 21. of the group.433. assets and liabilities which relate to the under which a separate unit called Funding Centre has been enterprise as a whole and are not allocable to any segment on a reasonable basis.04) (24.56.41 (51.39) (1.743.397.37 932.355.144.69 -11.296.29 (6.871. Expenses.229.51) Result 9.867.781. Liabilities b) Foreign Operations . expenses.2 SEGMENT INFORMATION PART A: PRIMARY (BUSINESS) SEGMENTS: ` in crore Business Segment Treasury Corporate / Retail Insurance Other Elimination TOTAL Wholesale Banking Business Banking Banking Operations Revenue 61.890.82) (85.230.289.945.837.071.869. Treasury segments are recipient of funds from Retail Banking.Branches.070.37) 238 State Bank of India | Annual Report 2015-16 . Subsidiaries and D) Allocation of Revenue. Wholesale and Retail Banking Operations or to Treasury C) Pricing of Inter-segmental Transfers Operations segment.176. and SBI General created.57 97.91) (29.86) (1.426. have been reported as Unallocated.94) (90.03 (2.53 20.476. 63) (9.722.70 29.30) Assets 26.203.994.54.44) Less: Minority Interest 794.537.948.52) (72.194.110.59 (12.58) (4.303.473.305.25 29.71 10.650.02) (3.490.64 (27.32) (9.38.03 (2.72) (10.468.66 27.51) Net Profit for the Group 12.27 (25.70.51.224.31.187.51.39 3.21.906.76 11.110.374.602.58.19 (72.21.33 12.59 (16.64) (10.172.573.00.909.680.661.86 12.92) (76.51) Net Profit 8.72) (16.110.59.Business Segment Treasury Corporate / Retail Insurance Other Elimination TOTAL Wholesale Banking Business Banking Banking Operations Add: Share in Profit in Associates 275.27 (22.00) (10.305.70.06) Total Assets 29.64 (23.53 4.624.975.78.91) (9.18.806.08 11.072.954.172.530.905.44 17.78.351.20.224.38.46. Assets/Liabilities are as at March 31.48) PART B: SECONDARY (GEOGRAPHIC) SEGMENTS ` in crore Domestic Foreign TOTAL Operations Operations Revenue 2.330.57.53) (26.41.298.06 12.897. 2016.66.74.47) (13.96) Unallocated Assets 29.448.00.594.722. (ii) Figures within brackets are for previous year State Bank of India | Annual Report 2015-16 239 .48) (i) Income/Expenses are for the whole year.184.66.46) (25.63 81.31.70 2.600.82 (314.30) Other Information: Segment Assets 6.12 27.90.965.19.02) Segment Liabilities 3.01 87.71) (3.16 (6.93) Unallocated Liabilities 80.994.72.51) (2.289.61 3.052.47.08 (3.48 (21.35.415.59.334.897.59.324.072.689.073.02) Liabilities 24.672.23) (24.93 10.09.51 (837.543.31) (27.82.42.55) Total Liabilities 27.90.871. 05.2015) 1. 3. Oman India Joint Investment Fund – Management 3. 19. Shri V. Macquarie SBI Infrastructure Management Pte.11.11. 20.2015) 6.3. Smt. 240 State Bank of India | Annual Report 2015-16 . Macquarie SBI Infrastructure Trustee Ltd. Shri P. Managing Director 7. Vananchal Gramin Bank A) JOINT VENTURES: ii) Others 1. Managing Director Company Pvt. Arundhati Bhattacharya. Madhyanchal Gramin Bank (Compliance & Risk) (from 02. Kaveri Grameena Bank Group) (from 02. Purvanchal Bank which are “State Controlled Enterprises” as per paragraph 9 of Accounting Standard (AS) 18.3.2 Related Parties with whom transactions were entered 9. Langpi Dehangi Rural Bank 6. Rajasthan Marudhara Gramin Bank in terms of paragraph 5 of AS 18. Managing Director (Corporate Banking Group) 6.11. Telangana Grameena Bank required to be disclosed in respect of Key Management Personnel and relatives of Key Management Personnel. Sriram Company Pvt. Further. SBI Macquarie Infrastructure Management Pvt.2015) 4. GE Capital Business Process Management Services Private Ltd. (upto 31. Ltd. 1.Edge Technologies Ltd. Meghalaya Rural Bank into during the year: 10.1 Related Parties to the Group: 18.2015 to 01. Gupta. Shri B.3 Related Party Disclosures: 16. C .3. Shri Rajnish Kumar 2. 21. Ltd. Ltd. SBI Macquarie Infrastructure Trustee Pvt. Ltd.G. SBI Home Finance Ltd. The Clearing Corporation of India Ltd. Utkal Grameen Bank 17. Mizoram Rural Bank 11. Nagaland Rural Bank No disclosure is required in respect of related parties. Pradeep Kumar. Andhra Pradesh Grameena Vikas Bank 5. 2. Shri P. Ellaquai Dehati Bank ® Managing Director (National Banking 5. Chairman 5. ® Managing Director (National Banking B) ASSOCIATES: Group) (upto 01. Arunachal Pradesh Rural Bank ® Managing Director (Compliance & Risk) 3. 2. Malwa Gramin Bank 3. (Associates & Subsidiaries) 8. K. Kannan. transactions in 14. C) Key Management Personnel of the Bank: 4.2015) i) Regional Rural Banks ® Managing Director (Corporate Banking Group) (from 02. Oman India Joint Investment Fund – Trustee 4. 13. 12. Chhattisgarh Rajya Gramin Bank (from 26.11. Saurashtra Gramin Bank the nature of Banker-Customer relationship are not 15. Bank of Bhutan Ltd.11. Uttarakhand Gramin Bank 3.10.2015) 8. (under liquidation) Ltd. 2015) 7. 24) (-) (0.03) (309.32) Other Liabilities 74.32 (33.86 .55 .34) (-) (0.97) Outstanding as on 31st March 2016 Payables Deposit 39. . 27. - (2.13 (0.23 (29. 52.34) (-) (0. - (-) (-) (-) Interest Expenditure 1.23 . 0.33 .70 (9. 0. 74. 39.55) (-) (41.13 .3 Transactions and Balances: ` in crore Particulars Associates/ Key Management Total Joint Ventures Personnel & their relatives Transactions during the year 2015-16 Interest Income .55) Other Assets 0.52) (-) (0. .55) Advances 0.08 1.34) Non-fund commitments (LCs/BGs) . 42.12) (-) (2.46 .82) (-) (33.45) (-) (29.01) (-) (9.3.46) (-) (87.90 (87.52) Investment 41.32 .32 .45) Receivables Balances with Banks .82) Other Income 3.86 (2.70 .55 (41.37 .94) Advances 0.13 .06) (-) (36.01) Management Contract 399.55 .78) Income earned by way of Dividend 27.26 (36.32) (-) (57.3.94) (-) (5. - (-) (-) (-) (Figures in brackets pertain to previous year) There are no materially significant related party transactions during the year. 0. 0. 41.46) Balance with Banks 2.37 (0.55 (41.94) (1.12 (5.90 .13 (0.46 (-) (-) (-) Other Expenditure 5. 41.32 (57.58 400.78) (-) (2.12 . 1. . State Bank of India | Annual Report 2015-16 241 .34) Maximum outstanding during the year Borrowings . 5.66 (308. 2.33 (0. .26 . 3.12) Investments 41. - (-) (-) (-) Deposit 52.06) Other Liabilities 42.24) Other Assets 0.55) (-) (41. 30.57.920 Interest Cost payable of the year Less than 1 year 0.744.627 746. * Diluted earnings per share is computed taking into 2016 2015 consideration the amount received for equity shares allotted Not later than 1 year 335.21 i) During the year.06.57.29 5.90 4.16 4.627 746.87 262.920 746.41 222.181.2 Operating Lease Weighted average number 766.40 outstanding at the end of the Present value of minimum year lease payments payable Less than 1 year 4.4. 2016.920 Total 1.57. Net Profit for the Group (` in 12.1 Finance Leases ` 1.68.70.00 Particulars As at As at March 31.08 10.06 9.994.10 crore). computing basic earnings per Total 7.02 1.27.5 Earnings per Share: 01.4.57.12 Basic and diluted 1 to 5 years 3. March 31.55 outstanding at the beginning 746.76 lease are given below: Diluted earnings per share (`) 15. 2001: The details of financial leases are given below: The Bank reports basic and diluted earnings per equity share in accordance with Accounting Standard 20 - ` in crore “Earnings per Share”.86 to Profit and Loss Account (Previous Year 242 State Bank of India | Annual Report 2015-16 . - Number of Equity Shares 776. March 31.199 of shares used in computing Operating leases primarily comprise office premises and staff diluted earnings per share residences. Later than 1 year and not later 1.42 1.43 5 years and above .122 - 1 to 5 years 0.55.55. (other than minority) by the weighted average number 2016 2015 of equity shares outstanding during the year.00 1.77.15 share 3.6 Accounting for Taxes on Income: Later than 5 years 341.30. “Basic earnings” per share is Particulars As at As at computed by dividing consolidated net profit after tax March 31.3.50 crore (Previous Year 3.320.59 16.285.63 0. Number of Equity Shares Total 8.60.79 5.920 1 to 5 years 2.14 836.224. . ` 83.51 issued during the year 5 years and above .30 crore) Liability for Premises taken on Non-Cancellable operating Basic earnings per share (`) 15.23 Weighted average number 766. .60 than 5 years 3.76* ` in crore Nominal value per share (`) 1. Total Minimum lease payments outstanding Particulars Current Year Previous Year Less than 1 year 4. which are renewable at the option of the group entities.042 746.95 22.89 Number of Equity Shares 29.05 on April 1.30. Assets taken on Financial Leases on or after April 3.39 0.68.92 of equity shares used in 5 years and above .46.30.18 crore has been debited Total 1.962.95 22.4 Leases: Amount of lease payments recognised in the P&L Account for the year is ` 2. 092.26 954.196.049. Contingent Liabilities & Contingent Assets: Particulars As at As at ® Provisions and contingencies recognised in 31-Mar-2016 31-Mar-2015 Profit and Loss Account: Deferred Tax Assets ` in crore Provision for Defined Benefit 1.96 (663.54 Standard/Standard Assets b) Provision on Non.769.48 Assets Others 1.539. 38.18 (0.94 Total 8.7 Impairment of assets: tax. In the opinion of the Management.043.049.22) (1.25 1.64) on Specified Restructured .863.05 . ` 1.65 employee Benefits .68 over the specified RBI Performing Assets Prudential Norms Depreciation on Fixed Assets 5.369.24 3. there is no impairment ii) The break up of deferred tax assets and liabilities to the assets during the year to which Accounting into major items is given below: Standard 28 – “Impairment of Assets” applies.717.884. ` in crore 3.93 3.34 Interest accrued but not due 3.15 5.22 2.45 578.14 2.32 33.660.18 (1.350.Current Tax 5.918.72) (Liabilities) State Bank of India | Annual Report 2015-16 243 .653.434.34 Schemes on account of Wage Particulars Current Year Previous Year Revision a) Provision for Taxation Provision for long term 2.06 20.821.64 crore credited) on account of deferred 3.95 e) Provision for 320.78 Total 43.26 on securities (Figures in brackets indicate credit) Special Reserve created u/s 4.214.375.89 690.15 Net Deferred Tax Assets/ (1.Other Taxes (0.11 210.09 470.64 36(1)(viii) of Income Tax Act 1961 Others 510.363.136.36 9.43 195.563.43 Depreciation on Deferred Tax Liabilities Investments Depreciation on Fixed Assets 236.745.04) 11.284.235.87) 1.67 assets d) Provision on Standard 2.79 f) Other Provisions 213.30 Provision/Additional Provision 2.23) c) Provision on (2.024.Deferred Tax 83.07) Total 6.634.63 Restructured Assets Provision for non performing 1.37 7.912.8 Provisions. Documentary credits 2 Liability on partly This item represents amounts other obligations enhance the credit standing of paid-up investments/ remaining unpaid towards liability the customers of the Group. and guarantees on behalf of its of which appeals are pending. Particulars Brief Description enters into off-setting transactions No in the interbank market.37 a future date.29 140. and hence a large value debts It does not expect the outcome of gross notional principal of the of these proceedings to have a portfolio. event of the customer failing to fulfil its financial or performance obligations. With respect to the transactions entered into ® Description of contingent liabilities (AS-29): with its customers. SBI generally Sr.76 222. 244 State Bank of India | Annual Report 2015-16 .05 contingent liabilities. Group’s financial conditions. This 1 Claims against The parent and its constituents results in generation of a higher the Group not are parties to various proceedings number of outstanding trans acknowledged as in the normal course of business. endorsements and customers. - or sell foreign currency at a future c) Draw down during the 28. actions. The Group is a party to of constituents. 4 Guarantees As a part of its commercial results of operations or cash given on behalf banking activities.05 362. issues documentary credits various taxation matters in respect acceptances.32 date at the contracted rate. Forward exchange contracts are commitments to buy b) Addition during the year . ® Floating provisions: 3 Liability on account The Group enters into foreign ` in crore of outstanding exchange contracts in its normal forward exchange course of business to exchange Particulars Current Year Previous Year contracts currencies at a pre-fixed price at a) Opening Balance 222. The year notional amo unts are recorded as d) Closing balance 193. while the net market risk material adverse effect on the is lower. the Group flows. Guarantees generally represent This also includes undrawn irrevocable assurances that the commitments for Venture Capital Bank will make payment in the Funds. Venture Funds for partly paid investments. under Depositors Education and computer software. crore (previous year ` 3.91 crore). remaining to be executed on capital account and not provided 5 Depreciation on Fixed Assets for.98/21.04. SBI has changed estimated useful by SBI on behalf of Associates life of few assets such as ATMs.397.02 26. The notional amounts e) Closing balance 718.51 63. disposal of appeals. material. coin dispensing machine. letter of comforts issued During the year.132/2013-14 dated February 26. The effect Awareness Fund A/c and other of which on the financial statements is considered not sundry contingent liabilities. the amount Companies during the year amounting to ` 1.077.83 378. networking equipment. contingently liable currency swaps and interest rate ` in crore swaps with inter-Bank participants on its own account and for Particulars Current Year Previous Year customers.009.95 crore (previous year ` 887. Interest rate swaps are d) Unused amount 314. Company balances between group entities are also Further. 2016.897.91 790. No material estimated amount of contracts effect is expected on the profit and loss account of the current year.46 are commitments to exchange b) Additions during the 240. terms of contractual obligations. forward rate agreements.67 commitments to exchange fixed reversed during the year and floating interest rate cash flows. The amount unamortized as at March 31.20 crore (previous year ` 3. are typically amounts offices. State Bank of India | Annual Report 2015-16 245 . local head offices and corporate centre used as a benchmark for the establishments of each domestic banking entity are calculation of the interest being reconciled on an ongoing basis. computer servers.281.91 that are recorded as Contingent 4 Inter Office Accounts between branches. as the case may be. based on predetermined the year rates. ` 2.669.00 cash flows by way of interest/ year principal in one currency against c) Amount utilised during 286. in terms of RBI Circular parties. Currency swaps a) Opening Balance 1. these also include being reconciled on an ongoing basis. cash dispensing & Subsidiaries.88 another.BC. Inter-Bank/ component of the contracts. ® Movement of provisions against contingent 5 Other items for The Group enters into currency liabilities: which the Group is options.24 being called up. DBOD.077. The contingent liabilities mentioned above are 6 Sale of Assets to Reconstruction Companies dependent upon the outcome of court/arbitration/out Shortfall on account of sale of assets to Reconstruction of court settlements.21 1. controlling Liabilities. 2014. 2016 is ` 2. Consequently. BP.13 crore) has been charged to the Profit & Loss Account for the year ended March 31. SBI’s Liability machines.04 crore) is being devolvement and raising of demand by concerned amortized over two years. DBR. 2014 amounting to ` 275.No. 246 State Bank of India | Annual Report 2015-16 . 1938 to distribute the administrative Assets (NPAs) as per the policy approved by the charges paid to Master policy holders vide order no. IRDA/Life/ORD/Misc/083/03/ 2014 dated NPAs.048/2014-15 dated March 30.29 crore respectively and approval of the Board. of During the year. SBI and State IRDA/Life/ORD/Misc/228/10/2012 dated October 5.78 crore (previous year ` 382. Ministry of Finance. to the members or the beneficiaries. Accordingly.03% (Previous Year 9. has issued directions under Section 34(1) of the 2014. Schedule 2 “Reserves and Surplus”.32 crore and to refund the crore and ` 21.. Bank of Mysore have utilized the CCPB of ` 1.7 Counter Cyclical Provisioning Buffer (CCPB) 10 Other income includes ` 2. SBI and its Domestic final orders are pending.00 2012 amounting to ` 84. 9 Food Credit 13 The investments of life and general insurance In accordance with RBI instruction. they have implemented the of Mysore is reported in ‘Revaluation Reserve’ under RBI directions.149. foreign offices to India and restatement of capital funds BC. 2016. As the (AQR) conducted by RBI.79/21.e.98 crore against outstanding in the of restating the same in accordance with the accounting food credit advance to a State Government pending policy followed by the banks. Bank’s Board of Directors. in accordance with the board approved policy March 11.50% with the IRDA (Investment Regulations) 2000 instead amounting to ` 715.BP.83 crore on account of exchange gain on repatriation of funds from SBI’s RBI vide Circular No. as a part of Asset Quality Review India) and Securities Appellate Tribunal (SAT).033.97%) of the total investments as on March 31. The investments of resolution by stakeholders. IRDA up to 50% of CCPB held by them as on December 31. 2015 on at historical costs at SBI’s foreign offices. Accordingly.04. for making specific provisions for Non-Performing Insurance Act. Govt. to utilise 11 In respect of SBI Life Insurance Company Ltd.00 crore excess commission paid to corporate agent vide and ` Nil) respectively for making specific provision for order no. make additional provision in respect of certain advance 12 Revaluation Reserve on revaluation of fixed assets accounts over two quarters ended December 2015 and in respect of State Bank of Patiala and State Bank March 2016. ‘Utilisation of Floating Provisions/Counter Cyclical Provisioning Buffer’ has allowed the banks. insurance subsidiaries constitute approximate 11. SBI and Domestic subsidiaries have been accounted for in accordance Banking Subsidiaries have made a provision of 7. the aforesaid amounts have Banking Subsidiaries have been advised to reclassify/ been disclosed as contingent liability. The company has filed appeals against the said directions/orders with the 8 Asset Quality Review (AQR) Appellate Authorities (i. 14 In accordance with RBI circular DBOD NO. 15 In accordance with current RBI guidelines. Gupta) (V. K. In cases where disclosures have in separate financial statements of the parent and its been made for the first time in terms of RBI guidelines/ subsidiaries having no bearing on the true and fair Accounting Standards. previous year’s figures have not been mentioned.01. redeemable preference the information pertaining to the items which are not shares (if any) are treated as liabilities and the coupon material have not been disclosed in the consolidated payable thereon is treated as interest. No.02/2007-08.42/21. No. reclassified. Sriram) Mem. G. additional statutory information disclosed year classification. Kannan) (B. to conform to current Accordingly. In terms of our Report of even date For Varma and Varma Chartered Accountants (Arundhati Bhattacharya) CHAIRMAN Cherian K Baby Partner (P. : 004532 S KOLKATA Dated 27th May 2016 State Bank of India | Annual Report 2015-16 247 . financial statements in view of the Accounting Standard Interpretation issued by ICAI.BP. view of the consolidated financial statements and also BC. wherever necessary. : 16043 MD (C & R) MD (A & S) MD (CBG) Firm Regn. the general clarification issued by ICAI has been considered in the 16 Previous year figures have been regrouped/ preparation of the Consolidated financial statements. 66) - (Profit)/Loss on revaluation of Investments (Net) 3144.10.39) Increase/(Decrease) in Other Liabilities & Provisions 37187.20.83 26297.92 SUB TOTAL 65508.34 17.58 Provision on Standard Assets 2284.77.52.86.30 1.70 Provision for depreciation on Investments 320.74.51 (Increase)/Decrease in Investments other than Investment in Subsidiary and (34959.43.68.09.55) (136132.36.96 Taxes Paid (9498.2015 (Current Year) (Previous Year) ` ` Cash flow from operating activities Net Profit before taxes (including share in profit from associates and net of minority 17658.56 214108.06.67.44.53 1581.53.38) Other Provisions 213.84 54773.09.87 578.66 33814.18) Dividend from Associates (Investing Activity) (7.29.32 (Increase)/Decrease in Other Assets (38436.03.85.33.37.31 Cash flow from investing activities (Increase)/Decrease in Investments in Subsidiary and Associates 99.95.23 Increase/(Decrease) in Borrowings other than Capital Instruments 7412.01.40 (663.34) (17.03.68 2918.57.03.17 Adjustments for : Increase/(Decrease) in Deposits 200896.2016 31.18 (1786.27 Dividend received from Associates 7.41.81.82) (91344.00.05.STATE BANK OF INDIA Consolidated Cash flow statement for the year ended 31st March 2016 ` in 000 Particulars Year ended on Year ended on 31.18.64) Provision on Non Performing Assets 35111.16) (3452.85.72 4894.42.77 interest) Adjustments for : Depreciation on Fixed Assets 2252.37.40) 248 State Bank of India | Annual Report 2015-16 .83) (7517.47 (Increase)/Decrease in Fixed Assets (3775.38 (Profit)/Loss on sale of Fixed Assets (Net) 21.28.51.47) Interest on Capital Instruments (Financing Activity) 4797.23 51.58 (Profit)/Loss on sale of Investments (Net) (Investing Activity) (11.39 19761.16 25331.49.30) Associates (Increase)/Decrease in Advances (213160.96.38.61.44.52.58) Reduction in FCTR on disposal of investments in non-integral operations (873.71 45919.35) - SUB TOTAL 23575.49.68 22198.12) (73270.05.30.73.47.61) (314.16.21.56.65) Net cash generated from / (used in) operating activities (A) 14076.91 Share in Profit of Associates (Investing Activity) (275.38.92.70. 2016 31.2015 Cash & Balances with Reserve Bank of India 160424.2015 (Current Year) (Previous Year) ` ` (Increase)/Decrease in Goodwill on Consolidation .03 (1553.55.67 Balances with Banks and Money at Call & Short Notice 43734.43) Dividends tax paid by Subsidiaries/JVs (88.86) (1236.92) Dividends paid including tax thereon (3058.33 (A)+(B)+(C)+(D) Cash and Cash equivalents at the beginning of the year 188481. Kannan) (B.2016 31. No.56.54.00. ` in 000 Particulars Year ended on Year ended on 31.04.60) (122.95 1142.84.72) (4894.69 587.03.52) (3430. K.95 Net increase / (decrease) in cash and cash equivalents 15678.51) Cashflow from financing activities Proceeds from issue of equity shares 5384.16.70.41 6.04.25 Interest on Capital Instruments (4797.38.46.04.18.03.65.40.80 In term of our Report of even date.80 167161.75 21319.68 Net Cash generated from / (used in) financing activities (C) 4348.13 TOTAL 204159. 3.03.00.64 44193.70.49.03.96.27.50.57 - Share Application Money pending allotment received .41.13.42) Effect of exchange fluctuation on translation reserve (D) 921. : 16043 MD (C & R) MD (A & S) MD (CBG) Firm Regn.15 Net Cash generated from / (used in) investing activities (B) (3668.34.55 188481. No. : 004532 S KOLKATA Dated 27th May 2016 State Bank of India | Annual Report 2015-16 249 .86.00) Increase/(Decrease) in Minority Interest 770.35. 2970.46.28.89.80 Components of Cash & Cash Equivalents as at: 31.47 Cash and Cash equivalents at the end of the year 204159. Sriram) Mem.45.00 Increase/(Decrease) in Capital Instruments 6138.33.91 144287. Gupta) (V. For Varma and Varma Chartered Accountants (Arundhati Bhattacharya) CHAIRMAN Cherian K Baby Partner (P.55 188481. G. which forms part of the Consolidated require that we comply with ethical requirements Financial Statements of the Group] which comprise and plan and perform the audit to obtain reasonable the Consolidated Balance Sheet as at March 31. on our consideration of the reports of other auditors We are informed that the management of the individual on separate financial statements and the other entities of the group have implemented such internal financial information of Subsidiaries. The procedures Management’s Responsibility for the Consolidated selected depend on the auditor’s judgment. We believe that the audit evidence we have obtained India. Joint Ventures controls and risk management systems that are and Associates. the State Bank of India Act. and based Group that give a true and fair view and are free from material misstatement. An audit also includes evaluating the Accounting Standard 23 – “Accounting for Investment appropriateness of accounting policies used and the in Associates in Consolidated Financial Statements” reasonableness of the accounting estimates made by and Accounting Standard 27 – “ Financial Reporting the management of the entities of the Group.Notes Chartered Accountants of India. the Consolidated Profit and Loss Account and statements are free from material misstatement. In making those risk assessments. This responsibility of the management of State is sufficient and appropriate to provide a basis for our Bank of India includes the design. The Management of State Bank of India is responsible to fraud or error. Mumbai financial statements and other financial information of the entities of the Group. as well as of Interest in Joint Ventures” issued by the Institute of evaluating the overall presentation of the consolidated Chartered Accountants of India. and a summary of significant accounting audit evidence about the amounts and disclosures in policies and other explanatory information. consolidated financial order to design audit procedures that are appropriate in performance and consolidated cash flows of the Group the circumstances but not for the purpose of expressing in accordance with the requirements of the Accounting an opinion on the effectiveness of the Group’s Standard 21 – “Consolidated Financial Statements”. In our opinion and to the best of our information and according to the explanations given to us. assurance about whether the consolidated financial 2016. We have audited the accompanying Consolidated Financial Statements of State Bank of India (the “Bank”) 3. We conducted our audit in accordance with Financial Statements are included in the Consolidated the Standards on Auditing issued by the Institute of Financial Statements are listed in Schedule 18 . the unaudited financial statements relevant to the preparation of the financial statements and the other financial information of a subsidiary and 250 State Bank of India | Annual Report 2015-16 . relevant for consolidation. and the designed procedures that are appropriate in the The Board of Directors. circumstances so that the internal controls with regard State Bank of India. Joint Ventures and Associates consolidated financial statements based on our (the “Group”) [The entities of the Group whose audit. the Consolidated Cash Flow Statement for the year 4. whether due 2. whether due to fraud or error. Those Standards to Accounts . 1955 and other accounting principles generally accepted in 5. implementation and audit opinion.Independent Auditor’s Report To. the requirements of financial statements. These Corporate Centre. statements have been prepared on the basis of separate State Bank Bhavan. Reserve Bank of India. the for the preparation of these consolidated financial auditor considers internal control relevant to the Group’s statements that give a true and fair view of the preparation of consolidated financial statements in consolidated financial position. maintenance of internal controls and risk management Opinion systems relevant to the preparation and presentation of the consolidated financial statements of the SBI 6. the consolidated financial statements. including Financial Statements the assessment of the risks of material misstatement of the consolidated financial statements. An audit involves performing procedures to obtain then ended. Report on the Consolidated Financial Statements Auditor’s Responsibility 1. to all the activities of the SBI Group are effective. Our responsibility is to express an opinion on these and its Subsidiaries. internal control. These financial statements and other financial (b) in the case of the Consolidated Profit and Loss information have been furnished to us by the Account. Emphasis of Matter 9.281 crore on these liabilities for life policies in force and for policies account of loss on sale of assets to Reconstruction in respect of which the premium has been discontinued Companies. 7: utilization of Counter Cyclical Buffer certified by the Appointed Actuary and in his opinion. 2015. Our opinion. The schedule 18 of Consolidated Financial Statements : actuarial valuation of liabilities for life policies in force is ‘Notes to Accounts’ regarding: the responsibility of the Company’s Appointed Actuary (the “Appointed Actuary”).711 crore for the 10. we draw attention to subsidiary of the Group have reported that the.26.171 crore during the year. of the consolidated profit of the Group management. a 7. Date: May 27. 6: non-amortization of `2.950 crore as at Chartered Accountants March 31. of `1. but liability exists as at 31 March 2016 has been duly (b) Note no. total assets of `22. cash inflows amounting to `12. the Group’s share in net cash inflows amounting to `3. of the cash flows of the Group for the other auditors and unaudited financial statements year ended on that date. and net Our opinion is not qualified in respect of these matters. certain associates as furnished by the Management. is based solely on the report of the Statement. net cash inflows amounting to `49 crore and the Group’s (a) in the case of the Consolidated Balance Sheet.59. total revenue of `191. referred to above. We have relied upon 8. 2016.016043 State Bank of India | Annual Report 2015-16 251 . 2016 M No. joint ventures and (c) in the case of the Consolidated Cash Flow associates. year then ended. the assumptions for such valuation are in accordance with the guidelines and norms issued by the Insurance Our opinion is not qualified in respect of the Regulatory and Development Authority of India (“IRDAI above stated matters. The auditors of SBI Life Insurance Company. and the affairs of such subsidiaries. / “Authority””) and the Institute of Actuaries of India in Other Matters concurrence with the Authority.114 crore as at March principles generally accepted in India: 31. 8 (eight) Joint Ventures and 12 statements vide their report dated May 22nd. 2016. 2016. Incorporated in these consolidated financial statements the Appointed Actuary’s certificate in this regard for are the: forming our opinion on the valuation of liabilities for life policies in force and for policies in respect of which (a) Audited accounts of the Bank audited by 14 premium has been discontinued but liability exists on (fourteen) Joint Auditors including us which reflect standalone financial statements of the Company. Without qualifying our opinion.228 crore. in so far as it relates to for the year ended on that date. total revenue of `146 crore. The consolidated financial statements of the Bank for year then ended.843 crore. of share in profit from associates of `78 crore for the the state of affairs of the Group as at March 31.499 crore. 2016. (c) Unaudited accounts of 1 (one) Subsidiary and the attached consolidated financial statements give 8 (eight) Associates whose financial statements a true and fair view in conformity with the accounting reflect total assets of `4. the year ended 31 March 2015 were audited by another (b) Audited accounts of 29 (twenty nine) auditor who expressed an unmodified opinion on those Subsidiaries.063 crore as at March 31. and Cherian K Baby the Group’s share in profit from associates of Place: Kolkata Partner ` 177 crore for the year then ended. the Group’s share in total FRN 004532S revenue of `83. (twelve) Associates audited by other auditors whose financial statements reflects the Group’s For VARMA & VARMA share in total assets of `7. The actuarial valuation of (a) Note no. 2016 The following subsidiaries. Accounting Standards / guidance notes issued by the ICAI (i) Qualitative Disclosures: a. 252 State Bank of India | Annual Report 2015-16 . Yes Consolidated as Yes Consolidated Not applicable Not applicable per AS 21 as per AS 21 11 SBICAP Singapore Yes Consolidated as Yes Consolidated Not applicable Not applicable (Singapore) Ltd.K. per AS 21 as per AS 21 10 SBICAP (UK) Ltd. per AS 21 as per AS 21 16 SBI –SG Global India Yes Consolidated as Yes Consolidated Not applicable Not applicable Securities per AS 21 as per AS 21 Services Pvt. Sr. per AS 21 as per AS 21 9 SBICAP Trustee India Yes Consolidated as Yes Consolidated Not applicable Not applicable Company Ltd. per AS 21 as per AS 21 8 SBICAP Ventures India Yes Consolidated as Yes Consolidated Not applicable Not applicable Ltd. Regulatory / Reserve Bank of India (RBI) guidelines. Ltd. joint ventures and associates are considered for the preparation of consolidated financial statements of SBI Group.03. List of group entities considered for consolidation for the period ended 31. which comprise the statutory provisions. per AS 21 as per AS 21 15 SBI Pension India Yes Consolidated as Yes Consolidated Not applicable Not applicable Funds Pvt Ltd. Ltd. U. Name of Country of Whether the Explain the Whether the entity Explain the Explain the Explain the No. the entity incorporation entity is included method of is included under method of reasons for reasons if under accounting consolidation regulatory scope of consolidation difference in consolidated scope of consolidation (yes the method of under only one consolidation / no) consolidation of the scopes of (yes / no) consolidation 1 State Bank of India Yes Consolidated as Yes Consolidated Not applicable Not applicable Bikaner & Jaipur per AS 21 as per AS 21 2 State Bank of India Yes Consolidated as Yes Consolidated Not applicable Not applicable Hyderabad per AS 21 as per AS 21 3 State Bank of India Yes Consolidated as Yes Consolidated Not applicable Not applicable Mysore per AS 21 as per AS 21 4 State Bank of India Yes Consolidated as Yes Consolidated Not applicable Not applicable Patiala per AS 21 as per AS 21 5 State Bank of India Yes Consolidated as Yes Consolidated Not applicable Not applicable Travancore per AS 21 as per AS 21 6 SBI Capital India Yes Consolidated as Yes Consolidated Not applicable Not applicable Markets Ltd.Pillar 3 Disclosures (Consolidated) as on 31st March 2016 DF-1: SCOPE OF APPLICATION State Bank of India is the parent company to which the Basel III Framework applies. The consolidated financial statements of the group conform to Generally Accepted Accounting Principles (GAAP) in India. per AS 21 as per AS 21 7 SBICAP Securities India Yes Consolidated as Yes Consolidated Not applicable Not applicable Ltd. per AS 21 as per AS 21 12 SBI DFHI Ltd. per AS 21 as per AS 21 14 SBI Global Factors India Yes Consolidated as Yes Consolidated Not applicable Not applicable Ltd. India Yes Consolidated as Yes Consolidated Not applicable Not applicable per AS 21 as per AS 21 13 SBI Payment India Yes Consolidated as Yes Consolidated Not applicable Not applicable Services Pvt. Name of Country of Whether the Explain the Whether the entity Explain the Explain the Explain the No. per AS 21 as per AS 21 25 PT Bank SBI Indonesia Yes Consolidated as Yes Consolidated Not applicable Not applicable Indonesia per AS 21 as per AS 21 26 Nepal SBI Bank Nepal Yes Consolidated as Yes Consolidated Not applicable Not applicable Ltd. 20 SBI Cards and India Yes Consolidated as Yes Consolidated Not applicable Not applicable Payment Services per AS 21 as per AS 21 Pvt. 21 State Bank of USA Yes Consolidated as Yes Consolidated Not applicable Not applicable India (California) per AS 21 as per AS 21 22 SBI Canada Bank Canada Yes Consolidated as Yes Consolidated Not applicable Not applicable per AS 21 as per AS 21 23 Commercial Indo Russia Yes Consolidated as Yes Consolidated Not applicable Not applicable Bank Llc. Moscow per AS 21 as per AS 21 24 SBI (Mauritius) Mauritius Yes Consolidated as Yes Consolidated Not applicable Not applicable Ltd. per AS 21 as per AS 21 Ltd. per AS 27 under scope of Regulatory Consolidation State Bank of India | Annual Report 2015-16 253 .Sr. per AS 21 Entity:Not under scope of Regulatory Consolidation 30 SBI General India Yes Consolidated as No Not applicable Not applicable Insurance Insurance per AS 21 Entity:Not Company Ltd. per AS 21 as per AS 21 28 State Bank of Brazil Yes Consolidated as Yes Consolidated Not applicable Not applicable India Servicos per AS 21 as per AS 21 Limitada 29 SBI Life Insurance India Yes Consolidated as No Not applicable Not applicable Insurance Company Ltd.Edge India Yes Consolidated as No Not applicable Not applicable JV Entity:Not Technologies Ltd. 19 SBI Funds Mauritius Yes Consolidated as Yes Consolidated Not applicable Not applicable Management per AS 21 as per AS 21 (International) Private Ltd. under scope of Regulatory Consolidation 31 C . 18 SBI Funds India Yes Consolidated as Yes Consolidated Not applicable Not applicable Management Pvt. Ltd. per AS 21 as per AS 21 27 Bank SBI Botswana Yes Consolidated as Yes Consolidated Not applicable Not applicable Botswana Ltd. the entity incorporation entity is included method of is included under method of reasons for reasons if under accounting consolidation regulatory scope of consolidation difference in consolidated scope of consolidation (yes the method of under only one consolidation / no) consolidation of the scopes of (yes / no) consolidation 17 SBI Mutual Fund India Yes Consolidated as Yes Consolidated Not applicable Not applicable Trustee Company per AS 21 as per AS 21 Pvt Ltd. of Regulatory Consolidation 35 Macquarie SBI Singapore Yes Consolidated as No Not applicable Not applicable JV Entity:Not Infrastructure per AS 27 under scope Management Pte. Consolidation 36 Macquarie SBI Bermuda Yes Consolidated as No Not applicable Not applicable JV Entity:Not Infrastructure per AS 27 under scope Trustee Ltd. of Regulatory Ltd. Ltd. of Regulatory Consolidation 37 Oman India Joint India Yes Consolidated as No Not applicable Not applicable JV Entity:Not Investment Fund per AS 27 under scope – Management of Regulatory Company Pvt. Consolidation 34 SBI Macquarie India Yes Consolidated as No Not applicable Not applicable JV Entity:Not Infrastructure per AS 27 under scope Trustee Pvt. the entity incorporation entity is included method of is included under method of reasons for reasons if under accounting consolidation regulatory scope of consolidation difference in consolidated scope of consolidation (yes the method of under only one consolidation / no) consolidation of the scopes of (yes / no) consolidation 32 GE Capital India Yes Consolidated as No Not applicable Not applicable JV Entity:Not Business Process per AS 27 under scope Management of Regulatory Services Pvt Ltd. Consolidation 33 SBI Macquarie India Yes Consolidated as No Not applicable Not applicable JV Entity:Not Infrastructure per AS 27 under scope Management Pvt. Name of Country of Whether the Explain the Whether the entity Explain the Explain the Explain the No. Consolidation 39 Andhra Pradesh India Yes Consolidated as No Not applicable Not applicable Associate Grameena Vikas per AS 23 Entity:Not Bank under scope of Regulatory Consolidation 40 Arunachal India Yes Consolidated as No Not applicable Not applicable Associate Pradesh Rural per AS 23 Entity:Not Bank under scope of Regulatory Consolidation 41 Chhattisgarh India Yes Consolidated as No Not applicable Not applicable Associate Rajya Gramin per AS 23 Entity:Not Bank under scope of Regulatory Consolidation 254 State Bank of India | Annual Report 2015-16 . Consolidation 38 Oman India Joint India Yes Consolidated as No Not applicable Not applicable JV Entity:Not Investment Fund – per AS 27 under scope Trustee Company of Regulatory Pvt. Ltd. of Regulatory Ltd.Pillar 3 Disclosures (Consolidated) as on 31st March 2016 Sr. Ltd. Name of Country of Whether the Explain the Whether the entity Explain the Explain the Explain the No.Sr. the entity incorporation entity is included method of is included under method of reasons for reasons if under accounting consolidation regulatory scope of consolidation difference in consolidated scope of consolidation (yes the method of under only one consolidation / no) consolidation of the scopes of (yes / no) consolidation 42 Ellaquai Dehati India Yes Consolidated as No Not applicable Not applicable Associate Bank per AS 23 Entity:Not under scope of Regulatory Consolidation 43 Meghalaya Rural India Yes Consolidated as No Not applicable Not applicable Associate Bank per AS 23 Entity:Not under scope of Regulatory Consolidation 44 Langpi Dehangi India Yes Consolidated as No Not applicable Not applicable Associate Rural Bank per AS 23 Entity:Not under scope of Regulatory Consolidation 45 Madhyanchal India Yes Consolidated as No Not applicable Not applicable Associate Gramin Bank per AS 23 Entity:Not under scope of Regulatory Consolidation 46 Mizoram Rural India Yes Consolidated as No Not applicable Not applicable Associate Bank per AS 23 Entity:Not under scope of Regulatory Consolidation 47 Nagaland Rural India Yes Consolidated as No Not applicable Not applicable Associate Bank per AS 23 Entity:Not under scope of Regulatory Consolidation 48 Purvanchal Bank India Yes Consolidated as No Not applicable Not applicable Associate per AS 23 Entity:Not under scope of Regulatory Consolidation 49 Utkal Grameen India Yes Consolidated as No Not applicable Not applicable Associate Bank per AS 23 Entity:Not under scope of Regulatory Consolidation 50 Uttarakhand India Yes Consolidated as No Not applicable Not applicable Associate Gramin Bank per AS 23 Entity:Not under scope of Regulatory Consolidation State Bank of India | Annual Report 2015-16 255 . under scope of Regulatory Consolidation 58 Bank of Bhutan Bhutan Yes Consolidated as No Not applicable Not applicable Associate Ltd.Pillar 3 Disclosures (Consolidated) as on 31st March 2016 Sr. Name of Country of Whether the Explain the Whether the entity Explain the Explain the Explain the No. per AS 23 Entity:Not under scope of Regulatory Consolidation 256 State Bank of India | Annual Report 2015-16 . the entity incorporation entity is included method of is included under method of reasons for reasons if under accounting consolidation regulatory scope of consolidation difference in consolidated scope of consolidation (yes the method of under only one consolidation / no) consolidation of the scopes of (yes / no) consolidation 51 Vananchal Gramin India Yes Consolidated as No Not applicable Not applicable Associate Bank per AS 23 Entity:Not under scope of Regulatory Consolidation 52 Saurashtra India Yes Consolidated as No Not applicable Not applicable Associate Gramin Bank per AS 23 Entity:Not under scope of Regulatory Consolidation 53 Rajasthan India Yes Consolidated as No Not applicable Not applicable Associate Marudhara Gramin per AS 23 Entity:Not Bank under scope of Regulatory Consolidation 54 Telangana India Yes Consolidated as No Not applicable Not applicable Associate Grameena Bank per AS 23 Entity:Not under scope of Regulatory Consolidation 55 Kaveri Grameena India Yes Consolidated as No Not applicable Not applicable Associate Bank per AS 23 Entity:Not under scope of Regulatory Consolidation 56 Malwa Gramin India Yes Consolidated as No Not applicable Not applicable Associate Bank per AS 23 Entity:Not under scope of Regulatory Consolidation 57 The Clearing India Yes Consolidated as No Not applicable Not applicable Associate Corporation of per AS 23 Entity:Not India Ltd. 12 114. Finance Ltd.2016 (` in crore) Sr. India Corporate Trusteeship 52.63 164. Arrangement of 15.189.97 211.036.66 15.24 28. India Asset Management 27.79 82.96 100% Risk weighting at 0. List of group entities considered for regulatory consolidation as on 31.A.b.55 64.27 2 State Bank of Hyderabad India Banking Services 10. 25. Name of the Country of Principle activity Total balance % of bank’s Regulatory Total balance No.336.77 corporate finance & providing advisory services 11 SBICAP (Singapore) Ltd.27 Activities 10 SBICAP (UK) Ltd. Liquidation available (ii) Quantitative Disclosures: c. U. List of group entities not considered for consolidation both under the accounting and regulatory scope of consolidation as on 31. incorporation entity equity (as stated assets (as stated in the in the accounting accounting balance balance sheet of the sheet of the legal legal entity) $ entity) 1 State Bank of Bikaner & Jaipur India Banking Services 6.399.742. entity incorporation of the entity sheet equity holding in the treatment sheet assets (as stated in total equity of bank’s (as stated in the accounting investments the accounting balance sheet of in the capital balance sheet of the legal entity) instruments of the legal entity) the entity 1 SBI Foundation India A Not-for-Profit 0.78 3 State Bank of Mysore India Banking Services 5.99 131. Singapore Business & 63.67 54.K.A.78 6 SBI Capital Markets Ltd.021. Name of the entity Country of Principle activity of the Total balance sheet Total balance sheet No.975. India Securities Broking & 115.078. India Merchant Banking and 1.00 4 State Bank of Patiala India Banking Services 7.506.89 Company for Venture Capital Fund 9 SBICAP Trustee Company Ltd.596.886.03.2016 Following is the list of group entities considered under regulatory scope of consolidation : (` in crore) Sr.05% Full provision N.241.28 Advisory Services 7 SBICAP Securities Ltd.80 110.21 5 State Bank of Travancore India Banking Services 6.43 its allied services and third party distribution of financial products 8 SBICAP Ventures Ltd.65 1.03.09 management Consultancy Services State Bank of India | Annual Report 2015-16 257 .96 Company 1250% to focus on Corporate Social Responsibility (CSR) Activities 2 SBI Home India Under N. 114.19 2.20 24 SBI (Mauritius) Ltd. India Primary Dealer in Govt.91 782.20 Securities 13 SBI Payment Services Pvt. 21 State Bank of India (California) USA Banking Services 754.07 1.04 7.g. Moscow Russia Banking Services 174.27 2. India Asset Management 630. Name of the entity Country of Principle activity of the Total balance sheet Total balance sheet No.23 27 Bank SBI Botswana Ltd.505. schemes floated by SBI Mutual Fund 18 SBI Funds Management Pvt.158.07 4. .81 889.194.68 92.80 Pvt Ltd.33 of NPS Trust allocated to them 16 SBI –SG Global Securities Services India Custody and Fund 87.Pillar 3 Disclosures (Consolidated) as on 31st March 2016 (` in crore) Sr.52 4. The aggregate amount of capital deficiencies in all subsidiaries which are not included in the regulatory scope of consolidation.82 7. Nepal Banking Services 394.08 34. 1.78 20.12 23 Commercial Indo Bank Llc.365. Services 20 SBI Cards and Payment Services India Credit Cards Business 1. India Factoring Activities 322. Ltd.78 25 PT Bank SBI Indonesia Indonesia Banking Services 596. Mauritius Banking Services 1. Ltd. incorporation entity equity (as stated assets (as stated in the in the accounting accounting balance balance sheet of the sheet of the legal legal entity) $ entity) 12 SBI DFHI Ltd. The aggregate amount (e. India Management of assets 34. current book value) of the Bank’s total interests in Insurance entities.i.836.92 Services $ Comprises of Equity Capital and Reserve & Surplus d.11 Services to schemes floated by SBI Mutual Fund 19 SBI Funds Management Mauritius Investment Management 1.65 631.98 4. that are deducted: Name of the Principle activity of Total balance sheet equity % of Bank's holding in the Capital Deficiency Subsidiaries/Country the entity (as stated in the accounting total equity of incorporation balance sheet of the legal entity) NIL e.which are risk- weighted: Name of the Principle activity Total balance sheet equity % of Bank's Quantitative impact on regulatory Insurance entities/ of the entity (as stated in the accounting holding in the capital of using risk weighting Country of balance sheet of the legal total equity method Vs using the full incorporation entity) deduction method NIL 258 State Bank of India | Annual Report 2015-16 .247. Botswana Banking Services 32.26 Pvt.62 22 SBI Canada Bank Canada Banking Services 672. India Payment Solution 2.30 (International) Private Ltd.18 15 SBI Pension Funds Pvt Ltd. accounting services 17 SBI Mutual Fund Trustee Company India Trusteeship Services to 20.155.57 242.64 1.01 28 State Bank of India Servicos Limitada Brazil Representative Office 1.28 5.e. Ltd.843.49 Services 14 SBI Global Factors Ltd.001.40 26 Nepal SBI Bank Ltd.42 Pvt. Ltd. The ICAAP details the capital of its capital to support planning process and carries out an assessment covering measurement.57 crs State Bank of India | Annual Report 2015-16 259 .31.950. Any restrictions or impediments on transfer of funds or regulatory capital within the banking group: NIL DF-2: CAPITAL ADEQUACY As on 31. CRAR of the Bank and for the Group as a whole is estimated to be well above the Regulatory CAR in the medium horizon of 3 to 5 years. The growth plan is approved by the parent bank after satisfying itself about the capacity of the individual subsidiaries to raise CET I / AT I / Tier II Capital to support the increased level of assets and at the same time maintaining the Capital Adequacy Ratio (CAR). considering the projected investment in Subsidiaries / Joint Ventures by SBI and growth in Advances by SBI and its Subsidiaries (Domestic / Foreign).f.950. the Bank has options to augment its capital resources by raising Subordinated Debt and Perpetual Debt Instruments. reporting. approach XX Securitization exposures Nil Total ` 1. to maintain adequate capital. Strategic Capital Plan for the Foreign Subsidiaries covers an assessment of capital requirement for growth of assets and the capital required complying with various local regulatory requirements and prudential norms. current and future activities monitoring. capital requirement and stress testing of the following Risks: XX Credit Risk XX Market Risk XX Operational Risk XX Credit Concentration Risk XX Liquidity Risk XX Interest Rate Risk in the Banking XX Compliance Risk Book XX Pension Fund Obligation Risk XX Country Risk XX Reputation Risk XX New Businesses Risk XX Residual Risk from Credit Risk XX Strategic Risk Mitigants XX Model Risk XX Settlement Risk XX Contagion Risk XX Securitization Risk Sensitivity Analysis is conducted annually or more frequently as required. internal controls. This analysis is done for the SBI and SBI Group separately. on the movement of Capital Adequacy Ratio (CAR) in the medium horizon of 3 to 5 years.03. However.57 crs.31. besides Equity as and when required.2016 Qualitative Disclosures (a) A summary discussion of The Bank and its Banking Subsidiaries undertake the Internal Capital Adequacy the Bank’s approach to Assessment Process (ICAAP) on an annual basis in line with the New Capital assessing the adequacy Adequacy Framework (NCAF) Guidelines of RBI. Quantitative Disclosures (b) Capital requirements for credit risk: XX Portfolios subject to standardized ` 1. 27 11.39 17.24 Nepal SBI Bank Ltd.28 12. yy Interest Rate Risk yy Foreign Exchange Risk ` 7.04 crore XX The Standardized Approach (if applicable) Total `14.24 40.01 9.255.Pillar 3 Disclosures (Consolidated) as on 31st March 2016 (c) Capital requirements for market risk: XX Standardized duration approach.21 15.59 crore yy Equity Risk `3.90 9. SBI Group 9.64 Commercial Indo Bank LLC. As from 31st March 2006.60 SBI Mauritius Ltd.24 40. in respect of an Overdraft/Cash Credit DISCLOSURES (OD/CC) (iii) The bill remains ‘overdue’ for a period of more than 90 a.620.21 12.76 20.12 XX For significant bank subsidiaries State Bank of Bikaner & Jaipur 8.2016 and Total Capital Ratios: CET 1 (%) Tier 1 (%) Total (%) XX For the top consolidated group.87 12.37 Bank SBI Indonesia 40.92 crore (d) Capital requirements for operational risk: XX Basic Indicator Approach `14. Non-performing assets if the installment of principal or interest thereon remains An asset becomes non-performing when it ceases to overdue for two crop seasons and a loan granted for generate income for the Bank.47 State Bank of India (California) 16.98 crore (including gold) `174.06 (stand alone or sub-consolidated State Bank of Hyderabad 8.43 is applied) State Bank of Patiala 8. 20.50 State Bank of Travancore 8. 12.04 crore (e) Common Equity Tier 1.03.14 SBI Canada Bank 17. 260 State Bank of India | Annual Report 2015-16 .62 depending on how the Framework State Bank of Mysore 9. if installment of non-performing Asset (NPA) is an advance where principal or interest thereon remains overdue for one crop season (i) Interest and/or installment of principal remain ‘overdue’ ](vi) An account would be classified as NPA only if the for a period of more than 90 days in respect of a Term interest charged during any quarter is not serviced fully Loan within 90 days from the end of the quarter. a long duration crops is treated as NPA. Tier 1 CAPITAL ADEQUACY RATIOS AS ON 31.928. 20.90 9.92 and State Bank of India 9.37 34.97 11.39 16.09 20. Qualitative Disclosures days in the case of bills purchased and discounted\ (iv) Any amount to be received remains ‘overdue’ for a XX Definitions of past due and impaired assets (for accounting purposes) period of more than 90 days in respect of other accounts (v) A loan granted for short duration crops is treated as NPA.19 11.11 Bank SBI Botswana Ltd.26 (ii) The account remains ‘out of order’ for a period of more DF-3: CREDIT RISK: GENERAL than 90 days.928.26 20.81 8.81 9.12 8.26 20.37 34.92 13.32 11.67 9.76 17.09 21. Moscow 34.35 crore Total `11.460. the following functions are undertaken : above. review and renewal of credit Credit Risk Management encompasses identification.(vii) The amount of a liquidity facility remains outstanding (ii) Conducting industry research to give specific policy for more than 90 days. dimensions such as single borrower. it also aims at continued Policy improvement of the overall quality of assets at the portfolio level. internal guidelines on prudential power. while which is reviewed annually. sensitive sectors such as capital market. real estate. risks categorized broadly into Financial. etc. such accounts are treated as ‘out of order’. Credit Audit covers audit of credit sanction decisions at various levels. the policy & leaving enough room for flexibility and innovation procedures in this regard have been refined as a result of evolving concepts and actual experience. pricing. The policy and The Bank has processes and controls in place in regard procedures have been aligned to the approach laid down in to various aspects of Credit Risk Management such as Basel-II and RBI guidelines. Business. credit approval authority. monitoring and control of the credit risk in exposures. appraisal. Industrial and Management Risks. group on the date of Bank’s Balance Sheet. individual borrowers. 2006. the overdue for the Industries / Sectors. receivables representing the positive mark to market value of a derivative contract. Credit Audit also examines identified Risks and Counterparty Risk. where necessary. remain unpaid for a period The measurement of Credit Risk involves computation of of 90 days from the specified due date for payment. in respect of securitization prescriptions and setting quantitative exposure transactions undertaken in accordance with the RBI parameters for handling portfolio in large / important guidelines on securitization dated February 1. Loss Given Default (LGD) and Exposure At Default (EAD). group borrower and In cases where the outstanding balance in the principal industries. Both the pre-sanction process and post- (i) Developing and refining the Credit Risk Assessment sanction position are examined as a part of the Credit Audit (CRA) Models/Scoring Models to assess the System. Any amount due to the Bank under any credit facility is ‘overdue’ if it is not paid on the due date fixed by the Bank. non-corporate enough to cover the interest debited during the same period. measurement. are in place. credit monitoring. Banks. For better risk management and avoidance of operating account is less than the sanctioned limit/drawing concentration of Credit Risks. reporting and monitoring. documentation. by establishing a commonality of approach regarding The Bank has an integrated Credit Risk Management. each of which is scored separately. industries. documentation standards and Risk Mitigation and Collateral Management Policy in place awareness of institutional concerns and strategies. entities. etc.. facilities. from time to time. or where credits are not companies. assessment. The Bank has also a Loan Policy which aims at ensuring that there is no undue deterioration in quality of individual assets XX Discussion of the Bank’s Credit Risk Management within the portfolio. The Bank also have a system of Credit Audit with the aims of achieving continuous improvement in the quality of the In the processes of identification and assessment of Credit Commercial Credit portfolio with exposure of `10 crore. Credit credit basics. management of problem loans. Simultaneously. ‘Out of Order’ status An account is treated as ‘out of order’ if the outstanding balance The monitoring and control of Credit Risk includes setting up remains continuously in excess of the sanctioned limit/drawing exposure limits to achieve a well-diversified portfolio across power. Credit Risk Components viz Probability of Default (PD). Credit Risk Stress Tests are conducted at half yearly interval to identify vulnerable ‘Overdue’ areas for initiating corrective action. and Risk. Over the years. by issuing advisories on the general outlook (viii) In respect of derivative transactions. appraisal skills. but there are no credits continuously for 90 days as exposure norms in respect of individual companies. sensitive commodities. State Bank of India | Annual Report 2015-16 261 . by taking into account the various suggests Risk Mitigation Measures. 87 i.98 iii) Specific provisions and write-offs during the current period 1156.37 ii) Additions 91899.28 ii) Provisions made during the period 801.64 n By major industry or counter party type i) Amt. Doubtful 3 8988.e.67 ii) Provisions made during the period 36859.03 h NPA Ratios i) Gross NPAs to gross advances 6. JVs & Non-financial entities excluded) General Disclosures: Amount . Loss 2970.71 Domestic 1648502.24 m Movement of Provisions for Depreciation on Investments i) Opening balance 678.83 320010. Doubtful 1 40330.42 vi) Closing balance 695.84 k Write-offs and recoveries that have been booked directly to the 668. Sum of (i to v) 123463.66 significant geographical areas including specific and general provisions Provisions 3992.13 separately ii) Specific & general provisions.30 2396187.37 iv) Write-back of excess provisions 15.87 j Movement of provisions for NPAs i) Opening balance 36812.03.53 g Net NPAs 69809. of NPAs and past due loans provided separately by 66439. and 6237.88 39797.Pillar 3 Disclosures (Consolidated) as on 31st March 2016 DF-3: Quantitative Disclosures as on 31. l Amount of Provisions held for Non-Performing Investments 372.09 427674.17 o Amt.47 2076176.19 iv.76 iii) Add: Foreign Exchange Revaluation Adj.01 iii. 0.56 d Industry Type Distribution of Exposures Fund based / Non Fund Please refer to Table “A” Based separately e Residual Contractual Maturity Breakdown of Assets Please refer to Table “B” f Amount of NPAs (Gross) i.12 262 State Bank of India | Annual Report 2015-16 . of NPA and if available.90 iv) Closing balance 123463.73 i Movement of NPAs (Gross) i) Opening balance 74613. provided 70423.85 Income St.19 v.95 ii.40 ii) Net NPAs to net advances 3.80 v) Closing balance 53654.98 v) Write-back of excess provisions 448. Doubtful 2 32513.00 iv) Write-off 335. past due loans.2016 (Insurance entities.27 c Geographic Distribution of Exposures : FB / NFB Overseas 280212.`in crore Quantitative Disclosures Fund Based Non Fund Based Total b Total Gross Credit Risk Exposures 1928714.97 467472. Substandard 38661.34 iii) Write-off 20001.40 iii) Reductions 43048. 542.3 Of which Drugs & Pharma 9.696.87 1.84 3034.82 1727.989.511.80 666.10 Total 1.08 16 Rubber / Rubber Products 4.48 630.66 14 Tobacco / Tobacco Products 654.760.` in crore CODE INDUSTRY FUND BASED [Outstanding-O/s)] NON-FUND BASED(O/s) Standard NPA Total 1 Coal 2.55 34.74 1.21 868.463.884.029.78 474.97 174.69 4.55 6294.97 467472.17 25.06 5.99 27 NBFCs & Trading 196.59 23 Automobiles & Trucks 14.805.714.89 41.30 State Bank of India | Annual Report 2015-16 263 .90 4 Metal Products 47.59 768.930.82 6.099.41 23055.41 41907.00 25.409.124.15 3 Iron & Steel 111.331.06 2930.734.194.506.722.262.993.021.26 297.037.755.93 8778.85 7 Cotton Textiles 30.180.150.182.22 6072.033.194.818.98 216.126.03.07 17.37 24 Computer Software 3.772.45 17.01 65.233.68 6 Electricity 35.05 525.64 26 Other Industries 161.95 7756.47 215.367.67 1531.04 12.179.45 16760.840.64 206.64 4242.137.23 170.358.92 11.279.21 1012.42 8 Jute Textiles 453.959.351.36 5.75 52.27 17 Chemicals / Dyes / Paints etc.251.19 1.09 5 All Engineering 38.71 11 Tea 748.05 25257.84 18499.30 9.59 2.96 22 Petroleum 49.33 701.24 641.85 950.325.1 Of which Power 166.05 25 Infrastructure 282.55 4.952.288.070.284.57 2666.A: DF-3 (d) Industry Type Distribution of Exposures as on 31.36 10 Sugar 9.34 11.08 15.29 5.26 29.13 13 Vegetable Oils & Vanaspati 5.512.255.425.63 2572.86 6.41 509.28 2787.226.499.3 Of which Roads & Ports 30.734.1 Of which Electronics 10.141.65 50.58 8.770.471.59 9.736.452.23 12.722.72 282.41 36437.98 82.51 15 Paper / Paper Products 5.2 Of which Petrochemicals 40.20 4.36 1.59 21.60 55.16 93883.246.16 687.82 3.193.77 881.582.928.742.58 3.418.69 15.290.92 39.425.56 134.86 12 Food Processing 34.965.74 25.69 10.10 123.80 2.95 18 Cement 8.674.642.43 25.62 75732.99 4.88 21 Construction 20.68 20 Gems & Jewellery 12.77 27.63 31090.07 4.603.94 12.80 17.756.95 1.2016 Amount .54 5333.83 2 Mining 8.90 15.2 Of which Telecommunication 27.01 53553.59 4.871.481.68 9 Other Textiles 26.044.11 19 Leather & Leather Products 2.79 119.150.23 55342.13 10395.05 243.891.25 22.40 587.82 78.69 5368.023.836.29 25.16 35.574.619.25 35. 73.99 2.1 Of which Fertilizers 12.57 28 Residual Advances 616.560.74 1.919.655.Table.64 559.955.446.271.095.14 50.81 3023.56 44.81 29781.88 2.530. Pillar 3 Disclosures (Consolidated) as on 31st March 2016 Table.82 2 Balances with RBI 49578.44 78544.92 73334.79 44460.25 63050. iii) The Bucketing structure has been revised based on the RBI guidelines dated March 23.22 3415. than or equal to one year (except Cash Credit.93 0.55 3 Balances with other 33167.00 14709.35 1274.31 *Notes: i) Insurance entities.B DF-3 (e) SBI (CONSOLIDATED) Residual contractual maturity breakdown of assets as on 31.51 4.63 100416.87 142637.66 43. ICRA. Moody’s term and short term exposures respectively are and S&P (International Rating Agencies) as approved considered by the Bank as issue specific ratings.28 7356.69 853996.95 2902787.00 0.41 1873542.49 1560.29 11. whose ratings yy Foreign sovereign and foreign bank exposures are are used for the purpose of computing Risk-weighted risk-weighted based on issuer ratings assigned to Assets and Capital Charge.00 0. Credits (irrespective of the period) and for Term 264 State Bank of India | Annual Report 2015-16 .45 82654.74 29471.70 31313.62 171546. Overdraft and other Revolving Credits). Rating Agencies. Non-financial entities.10 4019.56 0.84 43868.45 911.22 1473. ratings and the second-lowest rating where there (ii) For Cash Credit.59 11068.30 56659. Short-term yy Where multiple issuer ratings are assigned to an entity by various credit rating agencies.72 8864.72 28229. the Bank has identified CARE.24 5 Advances 115536.81 18350. Overdraft and other Revolving are three or more ratings are used for a given facility.00 0.99 26830. the lower rating. for the purpose of rating Domestic and Overseas Exposures. Special Purpose Vehicles & Intra-group Adjustments are excluded. Long Term Ratings are used. respectively.37 14639.97 2210.35 10586.32 7 Other Assets 52308.13 1287. FOR PORTFOLIOS SUBJECT TO THE STANDARDISED APPROACH XX Description of the process used to transfer Qualitative Disclosures Public Issue Ratings onto comparable assets in the Banking Book (a) For portfolios under the standardized approach: The key aspects of the Bank’s external ratings application XX Names of Credit Rating Agencies used.15 9526.97 111843.33 8.79 369721. them.00 15. SMERA and Brickwork credit rating agencies specifically to the Bank’s long (Domestic Credit Rating Agencies) and FITCH.22 100337.31 6 Fixed Assets 0.31 13.26 0.21 834770.11 11336.99 1489.19 3372.37 0.84 60484. 2016. In this Ratings given by approved Rating Agencies are context.13 TOTAL 286397.61 1005590.03. yy All long term and short term ratings assigned by the CRISIL.49 1998.48 16000.05 9174.48 3.19 319096. DF-4: CREDIT RISK: DISCLOSURES Loan exposures of over 1 year.2016* (`in crore) INFLOWS 1-14 15-30 31 days More Over 3 Over 6 Over 1 year Over 3 Over TOTAL days days & upto 2 than 2 months months & upto 3 years & 5 years months months & upto 6 & upto 1 years upto 5 & upto 3 months year years months 1 Cash 17523. yy The Bank ensures that the external rating of the XX Types of exposures for which each Agency is used facility/borrower has been reviewed at least once (i) For Exposures with a contractual maturity of less by the ECAI during the previous 15 months and is in force on the date of its application. India Rating.72 66958. where there are two used. JVs.10 356023.00 0.63 8304.62 221617. plus framework are as follows: reasons for any changes As per RBI Guidelines.00 22.00 17553. ii) Investments include Non-performing Investments and Advances includes Non-performing Advances.14 9917.51 156657.26 638337.00 0.94 Banks 4 Investments 18283.29 3044. a. Part B of this policy deals with Credit Risk Mitigation balance sheet netting and Collateral Management.05 deducted. it may use the net exposure of loans/advances and deposits as the basis for its capital adequacy State Bank of India | Annual Report 2015-16 265 . and Policy : c.45 Total 2396187. extent to which the bank makes use of. is able at any time to determine the loans/advances and reducing the exposure amount by the value ascribed to deposits with the same counterparty that are subject to the collateral. the rating given to that debt is applied to the Bank’s unrated exposures.61 and unrated) in each risk bucket as well as those that are More than 100% Risk Weight 320061. involving specific lien with proof of documentation. wherever applicable against exposures. any other unrated exposure on the same counter-party is assigned the same Risk Weight. Quantitative Disclosures as on 31. Where bank. by effectively b. which each relevant jurisdiction regardless of whether the allows full offset of collateral (after appropriate haircuts). amount of group’s outstanding (rated 100% Risk Weight 560379. The Bank calculates capital requirements The objective of this part of the Policy is to enable on the basis of net credit exposures subject to the following classification and valuation of credit risk mitigants in conditions: a manner that allows regulatory capital adjustment to reflect them. if the Bank’s exposure ranks pari passu or senior to the specific rated debt in all respects and the maturity of unrated Bank’s exposure is not later than the maturity of the rated debt.2016 (`in crore) Amount (b) For exposure amounts after risk mitigation subject to the Below 100% Risk Weight 1512863. Deducted 2883. counterparty is insolvent or bankrupt. has a well-founded legal basis for concluding that the netting or offsetting agreement is enforceable in The Policy adopts the Comprehensive Approach.16 Standardized Approach. Long-term Issue Specific Ratings (For the Bank’s own exposures or other issuance of debt by the same borrower- constituent/counter-party) or Issuer (borrower-constituents/counter-party) Ratings are applied to other unrated exposures of the same borrower-constituent/counter-party in the following cases : yy If the Issue Specific Rating or Issuer Rating maps to Risk Weight equal to or higher than the unrated exposures. addressing the Bank’s On-balance sheet netting is confined to loans/advances approach towards the credit risk mitigants used for and deposits. where the Bank have legally enforceable capital calculation. netting arrangements.03. and an indication of the Management) in place which is reviewed annually. on. monitors and controls the relevant exposures on a net basis. if the exposure ranks pari passu or junior to the rated exposure in all respects. respect to credit risk mitigation including Collateral Management and Counterparty Credit Risk XX Policies and processes for. The following issues are addressed in the the netting agreement. Loans/advances are treated as exposure and deposits as collateral. Credit Risk Mitigation.27 DF-5: CREDIT RISK MITIGATION: calculation. DISCLOSURES FOR STANDARDISED APPROACHES XX Policies and Processes for Collateral Valuation and Management Qualitative Disclosures The Bank has an integrated Credit Risk Management (a) The general qualitative disclosure requirement with Policy (Credit Risk Management. yy In cases where the borrower-constituent/counter-party has issued a debt (which is not a borrowing from the Bank).and off. yy Other guarantors having an external rating of XX Description of the main types of collateral taken by AA or better. counterparty. Banks and (viii) Monitoring of credit risk mitigants Primary Dealers with a lower risk weight than the (ix) General guidelines. 24660. on. The rating : of the guarantor should be an entity rating which has factored in all the liabilities and commitments yy Cash or Cash equivalent (Bank Deposits/NSCs/ (including guarantees) of the entity. affiliate or subsidiary. (c) For each separately disclosed portfolio the total exposure (after.03. The Bank accepts the following entities as eligible guarantors. yy Eligible financial collaterals listed above yy Guarantees by sovereigns and well-rated XX Main types of Guarantor Counterparty and their corporates. KVP/LIC Policy.or off. they should The following collaterals are usually recognised as enjoy a risk weight lower than the obligor for the Credit Risk Mitigants under the Standardised Approach guarantee to be recognised by the Bank. where applicable. Export Credit & Guarantee (v) Margin and Haircut requirements Corporation (ECGC) and Credit Guarantee Fund (vi) Custody of collateral Trust for Micro and Small Enterprises (CGTMSE)]. In case the guarantor is a parent the Bank company. creditworthiness yy Fixed assets and current assets of the counterparty.2016 (Amount . Sovereign entities [including Bank (ii) Acceptable credit risk-mitigants for International Settlements (BIS).19 balance sheet netting) that is covered by guarantees/credit derivatives (whenever specifically permitted by RBI) 266 State Bank of India | Annual Report 2015-16 . 252267.Pillar 3 Disclosures (Consolidated) as on 31st March 2016 (i) Classification of credit risk-mitigants yy Sovereign. on. such as:- Units of Mutual Funds regulated by securities regulator.`in crore) (b) For each separately disclosed credit risk portfolio the total exposure (after.or better/ PR3/P3/F3/A3 The Bank has a well-dispersed portfolio of assets which for Short-Term Debt Instruments are secured by various types of collaterals. International (iii) Documentation and legal process requirements for Monetary Fund (IMF). (vii) Insurance Public Sector Enterprises (PSEs). European Central Bank credit risk-mitigants and European Community as well as Multilateral (iv) Valuation of collateral Development Banks. in line with RBI guidelines : Quantitative Disclosures as on 31.) yy Gold XX Information about (Market or Credit) risk yy Securities issued by Central / State Governments concentrations within the mitigation taken: yy Debt Securities rated BBB. where applicable. etc.31 or off balance sheet netting) that is covered by eligible financial collateral after the application of haircuts. DF-6: SECURITISATION EXPOSURES: DISCLOSURE FOR STANDARDISED APPROACH Qualitative Disclosures (a) The general qualitative disclosure requirement with respect to securitisation including a discussion of: The bank’s objectives in relation to securitisation activity. auto loans etc. broken down between exposures and further broken down into different risk weight bands for each regulatory capital approach Exposures that have been deducted entirely from Tier 1 capital. Nil (e) For exposures securitised losses recognised by the bank during the current period broken by the Nil exposure type (e. (l) Aggregate amount of: On-balance sheet securitisation exposures retained or purchased broken down by exposure type. # A bank may provide credit protection to a securitisation transaction through guarantees. Not Applicable (h) The total amount of exposures securitised (by exposure type) and unrecognised gain or losses on Nil sale by exposure type. how the behaviour of the underlying assets impacts securitisation exposures as defined in para 5. @ A bank may have provided support to a securitisation structure in the form of an interest rate swap or currency swap to mitigate the interest rate/currency risk of the underlying assets. if permitted as per regulatory rules. liquidity risk) inherent in securitised assets. Quantitative Disclosures: Trading Book (k) Aggregate amount of exposures securitised by the bank for which the bank has retained some Nil exposures and which is subject to the market risk approach. (c ) In the banking book. detailed by underlying security) (f) Amount of assets intended to be securitised within a year Nil (g) Of (f). and other exposures deducted from total capital (by exposure type). by exposure type. Credit cards. credit enhancing I/Os deducted Nil from total capital.g. including the extent to which these activities Nil transfer credit risk of the underlying securitised exposures away from the bank to other entities. liquidity provider. A description of the processes in place to monitor changes in the credit and market risk of securitisation Not Applicable exposures (for example. including: Whether the transactions are treated as sales or financings. investor.g. Not Applicable Methods and key assumptions (including inputs) applied in valuing positions retained or purchased Not Applicable Changes in methods and key assumptions from the previous period and impact of the changes. swap provider@. if permitted as per regulatory rules. 2012). the names of ECAIs used for securitisations and the types of securitisation Not Applicable exposure for which each agency is used.1 of the Master Circular on NCAF dated July 1. Not Applicable Policies for recognising liabilities on the balance sheet for arrangements that could require the bank Not Applicable to provide financial support for securitised assets. and Nil State Bank of India | Annual Report 2015-16 267 .16. provider of credit enhancement. protection provider#) and an indication of the extent of the bank’s involvement in each of them. Not Applicable The various roles played by the bank in the securitisation process (For example: originator. The nature of other risks (e. credit Not Applicable derivatives or any other similar product. A description of the bank’s policy governing the use of credit risk mitigation to mitigate the risks Not Applicable retained through securitisation exposures. (i) Aggregate amount of: On-balance sheet securitisation exposures retained or purchased broken down by exposure type and Nil Off-balance sheet securitisation exposures broken down by exposure type Nil (j) Aggregate amount of securitisation exposures retained or purchased and the associated capital Nil charges. (b) Summary of the bank’s accounting policies for securitization activities. servicer. Quantitative Disclosures: Banking Book (d) The total amount of exposures securitised by the bank. amount of assets originated within a year before securitisation. housing loans. DF. Option Greeks.at. is reported is to Top Management (3) MRMD is responsible for identification. credit enhancing I/Os Nil deducted from total capital. AFS category. if any. (n) Aggregate amount of: The capital requirements for the securitisation exposures. exceptions. Treasury Operations. Aggregate Gap Limit (AGL). Concentration Risk Limits. Market Risk Management Committee and monitoring and reporting of market risk associated with Risk Management Committee of the Board. Market Risk Management Committee and Risk Management Committee of the (b) Review of Market Risk Limits (Trading Book) Board.7: MARKET RISK IN TRADING (h) Stress Test Policy BOOK (i) Model Validation Policy Qualitative disclosures (j) Valuation Policy 1 The following portfolios are covered by the Standardised (5) Risk monitoring is an ongoing process and risk positions Measurement Method (SMM) for computing capital are analysed and reported to Top Management of the requirement for Market Risk: Bank. subject to the securitisation framework Nil broken down into different risk weight bands. (c) Investment Policy (9) Respective Foreign offices monitor risk of their (d) Policy for Trading in Interest Rate Securities and Equity investment portfolio. Back- (4) The following Board approved policies with defined Testing of VaR number is carried out on daily basis. (2) Market Risk Management Department (MRMD) is (7 Forex Open position limit (Daylight/Overnight).Risk Policy 268 State Bank of India | Annual Report 2015-16 . Cut Loss Trigger and XX All derivatives positions. as per the local regulatory and RBI (e) Policy for Derivatives stipulations. and other exposures deducted from total capital(by exposure type). Stop Loss limit for individual investments (f) Forex Trading Policy and exposure limits for certain portfolios have been prescribed. Hedge Effectiveness test as mandated by RBI.Pillar 3 Disclosures (Consolidated) as on 31st March 2016 Off-balance sheet securitisation exposures broken down by exposure type. Market Risk Management parameters for each asset Stress Testing is carried out at quarterly intervals as a class are in place: complement to Value at Risk. in terms of Governance structure approved by Limit (IGL) as approved by the Board is monitored and the Board of the Bank. Results are reported to (a) Market Risk Management Policy Top Management of the Bank. XX Bonds & Equity holdings under the Held for Trading (HFT) and Available for Sale (AFS) categories. (g) Value. PV01. Individual Gap the Bank. Market Risk Management Committee and Risk Management Committee of the Board. Maximum permissible exposures. Value at Risk Limits. Nil (m) Aggregate amount of securitisation exposures retained or purchased separately for: Nil Securitisation exposures retained or purchased subject to Comprehensive Risk Measure for Nil specific risk. in line with global best used for hedging Banking Book and meet the practices. (6) Risk management and reporting is based on parameters XX Forex under HFT category and Mutual Fund under such as Modified Duration. Stop functioning as part of Risk Management Department of Loss Limit. of the Bank. Securitization exposures that are deducted entirely from Tier 1 capital. except those which are Management Action Triggers. and Securitisation exposures subject to the securitisation framework for specific risk broken down into Nil different risk weight bands. (8) Value at Risk (VaR) is computed on a daily basis. assessment. Policies for control and mitigation of Operational C. mitigation the Operational Risk Management Committee and reporting of the Operational Risks (ORMC) and the Risk Management Committee of the Board (RMCB). Risk Management Committees at various levels at Policies and Framework Documents circles like RMCAOs. etc. and also at the XX Operational Risk Management policy. Incident Reporting Mechanism. Strategies and Processes Risk Domestic Banking entities (SBI & ABs) Domestic Banking Entities (SBI and ABs) Advanced Measurement Approach(Parallel Run) The following Policies. Reporting Mechanism. measurement. Near Miss Events Officers of respective entities. RMCC. encompasses Business and Support Groups (RNC-NBG. In entities SBI.2016 XX Bank’s Outsourcing Policy Interest rate Risk(including Derivatives) 7620. RMC- Operational Risk Management Framework IBG. Outsourcing Policy. as relevant to the business model & Risk) of Non-Banking entities and as per the requirements of XX The operational risk related issues in other the overseas regulators in respect of Overseas Banking Group entities are being dealt with as per the subsidiaries are in place.92 XX Change Management Framework Document XX Capital Computation Framework Document DF–8: OPERATIONAL RISK Manuals XX Operational Risk Management Manual Qualitative disclosures XX Loss Data Manual A. RMC-GMU.(10) Bank has decided to migrate to advanced approach i. SAMG & RMC-IT) are in place in addition to assessment. XX Loss Data Management Policy Internal Models Approach for calculating capital charge XX External Loss Data Management Policy for market risk and submitted Letter of Intent (LOI) to XX IS Policy RBI. RMC-CBG.59 Document Total 11255.98 XX Policy on Insurance Equity Position Risk 3460. Framework Documents and XX In SBI. Chief Risk Officer reports to MD (Compliance Policies and Manuals. A few of the policies in place requirements of the business model and their are – Disaster Recovery Plan/ Business Continuity regulators under the overall control of Chief Risk Plan. The structure and organization of Operational Risk XX Business Continuity Planning (BCP) Manual Management function XX The Operational Risk Management Department is XX Business Continuity Management System (BCMS) functioning in SBI as well as Associate Banks as Manual part of the Integrated Risk Governance Structure Domestic Non-Banking and Overseas Banking under the control of respective Chief Risk Officer. in order to successfully embed the risk Manuals are in place in SBI and Associate Banks: culture and operational risk management.e. and Anti Money Laundering (AML)/ Combating of Financing of Terrorism Measures (`in crore) XX Policy on Fraud Risk Management Category 31. RMC-MCG. RMC- for systematic and proactive identification. B. monitoring.35 XX Operational Risk Appetite Framework (SBI) Foreign Exchange Risk 174. State Bank of India | Annual Report 2015-16 269 . XX IT Policy XX Business Continuity Planning (BCP) Policy (b) Quantitative Disclosures: XX Business Continuity Management System (BCMS) Capital Charge On Market Risk Policy Bank maintains Capital Charge for Market Risk under the XX Policy on Know Your Customer (KYC) Standards Standardised measurement method as under.03. the ORMC and the RMCB. Manual on Loans & Advances) Group entities. Presently. Scenario Analysis and loss data analysis are Amendments and modifications to update these reported to Top Management at regular intervals and guidelines are being carried out regularly through corrective actions are initiated on an ongoing basis. except Insurance nuggets. which details AMA process. XX Internal Auditors are responsible for the examination RCSA exercise process. Guidelines and XX Basic Indicator Approach with capital charge of instructions are also propagated through Job 15% of average gross income for previous 3 years Cards. about potential operational risks excluding frauds as per 2035 branches/processing centres were part of the Bank’s policy on insurance. control procedures. XX Development of internal systems for quantifying and monitoring operational risk as required under Domestic Non-Banking and Overseas Banking Basel II defined Advanced Measurement Approach entities (AMA) is in place at SBI and ABs. They also conduct review XX Key Risk Indicators (KRIs) have been identified of the existing systems to ensure compliance across the Business and Support Groups with with legal and regulatory requirements. the Bank (SBI) and ABs have robust XX Bank also periodically undertakes the process of Business Continuity Management Policy and AMA Use-Test. In addition. Top risks identified in the and evaluation of the adequacy and effectiveness of RCSA exercises along with their mitigation plan the control systems and the functioning of specific are being addressed on an ongoing basis. codes of threshold and monitoring mechanism. E-Learning Lessons. RMCs. submitted their LoI. Near Miss Events and sanctioning powers of various levels of officials external losses are also captured so as to improve for different types of financial and non-financial risk management practices. as part of XX Delegation of Financial powers. Training Programs. for processing various banking transactions. of the current control environment and heat maps XX Insurance cover is obtained for most of the to describe the Risk Levels. D. KRIs are conduct and the implementation of policies and being monitored at quarterly intervals by the procedures. transactions. resumption KRIs are being monitored across the business & and recovery of critical business process after support groups.Pillar 3 Disclosures (Consolidated) as on 31st March 2016 XX The process of building a comprehensive database XX Updated Manuals and operating instructions of internal and external losses due to Operational relating to Business Process Re-engineering Risks as per Basel defined 8 Business Lines (BPR) units. Adequate measures by way of systems and procedures XX The Bank (SBI) has already received approval and reporting has been put in place in the Domestic for parallel run for AMA to RBI while ABs have Non-Banking and Overseas Banking entities. Manuals are in place. e-circulars/Master circulars. XX Excel based template for conducting Risk & XX Training of staff-Inputs on Operational Risk is Control Self Assessment (RCSA) exercise through included as a part of Risk Management modules workshops has been introduced with the provision in the trainings conducted for various categories of of inherent Risk and Residual Risk. entities: XX A comprehensive system of Preventive Vigilance XX “Book of Instructions” (Manual on General & Whistle Blowing has been established in all the Instructions. Mobile is applied for Operational Risk. e-Circulars. control staff at Bank’s Apex Training Institutes and State element to arrive at and assess the effectiveness Bank Learning Centers. and 7 Loss Event Types is in place. which contains detailed procedural guidelines XX Significant risks thrown up in RCSA exercise. During the year. etc. a disaster. 185 XX In order to ensure business continuity. 270 State Bank of India | Annual Report 2015-16 . The scope and nature of Risk Reporting and Others Measurement Systems The following measures are being used to control and XX A system of prompt submission of reports on Frauds mitigate Operational Risks in the Domestic Banking is in place in all the Group entities. existing rates and re. 2016 as part of AMA Parallel liabilities through Interest rate sensitivity under Duration Run.4 The prudential limit aims to restrict the overall adverse ALCO. It reviews (`in crore) various decisions taken by Asset .e.Liability Management Impact on NII Committee (ALCO) for managing interest risk. periodically monitors and controls the risks impact on account of interest rate risk to the extent of and returns. change in interest rates for both assets and liabilities) The Asset . ALCO also develops the market risk strategy by clearly articulating the acceptable levels of exposure to specific risk 2. therefore. quality. 1. Value of Equity (MVE) Impact of 100 bps parallel shift in interest 6881. maturity. volatility Impact (as % External factors cover general economic conditions. gap analysis (IRSD).2 RBI has also stipulated to estimate the impact of change Bank’s Capital under AMA is also computed for the in interest rates on economic value of bank’s assets and year ended 31st March. Bank also carries out Duration Gap analysis as stipulated by RBI on monthly basis.1 RBI has stipulated monitoring of interest rate risk through a Statement of Interest Rate Sensitivity (Repricing Market Value of Equity (MVE) Gaps) to be prepared on a monthly basis. while part of the remaining and deposit rates. for the year ended 31st March. The Risk Management (March 2016) Committee of the Board of Directors (RMCB) oversees Earnings at Risk (EaR) the implementation of the system for ALM and reviews its functioning periodically and provides direction. and directing the investment activities of the capital and reserves serves as cushion for other risks Bank. liquidity etc). funding and deployment. (` in crore) ALCO reviews Interest Rate Sensitivity statement on monthly basis and monitors the Earning at Risk (EaR) Impact on MVE which measures the change in Net Interest Income of Impact of 200 bps parallel shift in interest 13762. Changes on account of Interest rate Maximum pricing period of deposits. borrowings. DF-9: INTEREST RATE RISK IN THE The impact of interest rate changes on the Market Value of Equity is monitored through Duration Gap analysis BANKING BOOK (IRRBB) by recognising the changes in the value of assets and liabilities by a given change in the market interest rate.10 rate on both assets & liability on Net Interest Income (NII) 1. Rising or of capital and reserve) falling interest rates impact the Bank depending on whether Changes in Net Interest Income (with 1% 5% the Balance Sheet is asset sensitive or liability sensitive. loans and investments.08 rate on both assets & liability on Market Value of Equity (MVE) State Bank of India | Annual Report 2015-16 271 . Impact of 100 bps parallel shift in interest 7472. 2016. Internal factors include the composition of the Bank’s monitoring of various interest risks: assets and liabilities.3 The following prudential limits have been fixed for factors.16 the Bank due to parallel change in interest rate on both rate on both assets & liability on Market the assets & liabilities. Companies. Qualitative Disclosures The change in value of equity (including reserves) with INTEREST RATE RISK: 2% parallel shift in interest rates for both assets and Interest rate risk refers to impact on Bank’s Net Interest liabilities is estimated.Liability Management Committee (ALCO) is Change in Market value of Equity (with 20% responsible for evolving appropriate systems and procedures 2% change in interest rates for assets for ongoing identification and analysis of Balance Sheet risks and liabilities) – Banking Book only and laying down parameters for efficient management of these risks through Asset Liability Management Policy of the Bank. Quantitative Disclosures (for State Bank Group) types (i. 1. Accordingly. interest rate. Income and the value of its assets and liabilities arising from fluctuations in interest rate due to internal and external 1. setting Bank’s lending 20% of capital and reserves. 1. 57 Credit derivatives Nil Bank has not entered into any collateral agreement (Credit transactions Support Annex or equivalent) with any of the bank.51 transactions are undertaken only with those counterparties Contracts where approved counterparty limits are in place. from April 1.60 7082. DF-11: COMPOSITION OF CAPITAL As on 31. 2018 5 Common share capital issued by subsidiaries and held 3613.41 B5 * 75% + B6 * 45% reserves) 4 Directly issued capital subject to phase out from CET1 (only applicable to non-joint stock companies) Public sector capital injections grandfathered until January 1.24 of related tax liability) 10 Deferred tax assets 57.55 by third parties (amount allowed in group CET1) 6 Common Equity Tier 1 capital before regulatory 175502.2016 (`in crore) Basel III common disclosure template to be used during the transition of regulatory Amounts Subject Ref No.00 Qualitative Disclosure: Counterparty Credit Risk is the risk that the counterparty to a b) Currency Swaps 20560.18 189. 2013 to December 31.95 456. also does not recognize bilateral netting. Counterparty e) Currency Futures 0.88 0.41 adjustments Common Equity Tier 1 capital before regulatory adjustments 7 Prudential valuation adjustments 8 Goodwill (net of related tax liability) 756.00 0. To mitigate this risk.76 A1 + B3 related stock surplus (share premium) 2 Retained earnings 115616. Bank.Pillar 3 Disclosures (Consolidated) as on 31st March 2016 DF-10: GENERAL DISCLOSURE Quantitative Disclosures (`in crore) FOR EXPOSURE RELATED TO Particulars Notional Current Credit COUNTERPARTY CREDIT RISK Exposure a) Interest rate Swaps 95778. derivative d) Foreign Exchange 393344.69 B1 + B2 + B7 (#) + B8 3 Accumulated other comprehensive income (and other 5726.40 11 Cash-flow hedge reserve 272 State Bank of India | Annual Report 2015-16 . rating etc.11 4339.03.e.00 0.04 D * 80% 9 Intangibles other than mortgage-servicing rights (net 1824.00 limits for banks are assessed using internal models considering a number of financial parameters like networth. which require maintenance of collateral. (with adjustments (i.16 57.12: Treatment Step 2) Common Equity Tier 1 capital (CET1): instruments and reserves 1 Directly issued qualifying common share capital plus 50545. 2017) to Pre-Basel III respect to DF .88 1931.57 754. Total 515509.24 of the transaction’s cash flow.81 derivative transaction can default before the final settlement c) Currency Options 5806. For corporates the Agreements Derivatives limits are assessed and sanctioned in conjunction g) Others (Foreign Swaps) 0. f) Forward Rate 19.00 with regular credit limit as part of regular appraisal.01 capital adequacy ratio. 18 State Bank of India | Annual Report 2015-16 273 . financial and insurance entities that are outside the scope of regulatory consolidation (amount above 10% threshold) 20 Mortgage servicing rights (amount above 10% threshold) 21 Deferred tax assets arising from temporary 0 differences (amount above 10% threshold.56 5.00 insurance entities that are outside the scope of regulatory consolidation.09 33.61 37.70 paid-up capital on reported balance sheet) 17 Reciprocal cross-holdings in common equity 134.36 unconsolidated insurance subsidiaries 26b of which: Investments in the equity capital of unconsolidated non-financial subsidiaries 26c of which: Shortfall in the equity capital of majority owned financial entities which have not been consolidated with the bank 26d of which: Unamortised pension funds expenditures 20. 2013 to December 31. where the bank does not own more than 10% of the issued share capital (amount above 10% threshold) 19 Significant investments in the common stock of 0.00 274.12: Treatment Step 2) 12 Shortfall of the stock of provisions to expected losses 13 Securitisation gain on sale 14 Gains and losses due to changes in own credit risk on fair valued liabilities 15 Defined-benefit pension fund net assets 16 Investments in own shares (if not already netted off 202.00 banking.e.23 29 Common Equity Tier 1 capital (CET1) 171429.44 269. 2017) to Pre-Basel III respect to DF .47 18 Investments in the capital of banking. from April 1.Basel III common disclosure template to be used during the transition of regulatory Amounts Subject Ref No. (with adjustments (i. net of related tax liability) 22 Amount exceeding the 15% threshold 0 23 of which: significant investments in the common stock of financial entities 24 of which: mortgage servicing rights 25 of which: deferred tax assets arising from temporary differences 26 National specific regulatory adjustments 1098. net of eligible short positions.14 Regulatory Adjustments applied to Common Equity Tier 1 in respect of Amounts subject to Pre-Basel III treatment of which: [INSERT TYPE OF ADJUSTMENT] For example: filtering out of unrealised losses on AFS debt securities (not relevant in Indian context) of which: [INSERT TYPE OF ADJUSTMENT] of which: [INSERT TYPE OF ADJUSTMENT] 27 Regulatory Adjustments applied to Common Equity Tier 1 due to insufficient Additional Tier 1 and Tier 2 to cover deductions 28 Total regulatory adjustments to Common equity Tier 1 4073.50 (26a+26b+26c+26d) 26a of which: Investments in the equity capital of 1077. financial and 0. e.61 capital 274 State Bank of India | Annual Report 2015-16 .12: Treatment Step 2) Additional Tier 1 capital (AT1) : instruments 30 Directly issued qualifying Additional Tier 1 instruments plus related stock surplus (31+32) 31 of which: classified as equity under applicable accounting standards (Perpetual Non-Cumulative Preference Shares) 32 of which: classified as liabilities under applicable accounting standards (Perpetual Debt Instruments) 33 Directly issued capital instruments subject to phase 3031. from April 1. financial and insurance entities that are outside the scope of regulatory consolidation (net of eligible short positions) 41 National specific regulatory adjustments (41a+41b) 41a Investments in the Additional Tier 1 capital of unconsolidated insurance subsidiaries 41b Shortfall in the Additional Tier 1 capital of majority owned financial entities which have not been consolidated with the bank Regulatory adjustments applied to Additional Tier 1 in 788.g.96 instruments 39 Investments in the capital of banking. DTAs] of which: [INSERT TYPE OF ADJUSTMENT e. net of eligible short positions.77 respect of amounts subject to Pre-Basel III treatment of which: [INSERT TYPE OF ADJUSTMENT e.00 phase out 36 Additional Tier 1 capital before regulatory adjustments 4579.Pillar 3 Disclosures (Consolidated) as on 31st March 2016 Basel III common disclosure template to be used during the transition of regulatory Amounts Subject Ref No.g. 2017) to Pre-Basel III respect to DF .09 Additional Tier 1 capital: regulatory adjustments 37 Investments in own Additional Tier 1 instruments 38 Reciprocal cross-holdings in Additional Tier 1 239. (with adjustments (i. 2013 to December 31.58 out from Additional Tier 1 34 Additional Tier 1 instruments (and CET1 instruments 1547. where the bank does not own more than 10% of the issued common share capital of the entity (amount above 10% threshold) 40 Significant investments in the capital of banking. existing adjustments which are deducted from Tier 1 at 50%] of which: [INSERT TYPE OF ADJUSTMENT] 42 Regulatory adjustments applied to Additional Tier 1 due to insufficient Tier 2 to cover deductions 43 Total regulatory adjustments to Additional Tier 1 1028.51 not included in row 5) issued by subsidiaries and held by third parties (amount allowed in group AT1) 35 of which: instruments issued by subsidiaries subject to 1047.84 59. financial and insurance entities that are outside the scope of regulatory consolidation. 37 Tier 2 capital: regulatory adjustments 52 Investments in own Tier 2 instruments 79.48 adequacy 45 Tier 1 capital (T1 = CET1 + AT1) [29 + 174979.00 related stock surplus 47 Directly issued capital instruments subject to phase 18962.68 0 respect of amounts subject to Pre-Basel III treatment of which: [INSERT TYPE OF ADJUSTMENT e.g.e.06 51 Tier 2 capital before regulatory adjustments 54254.34 58a Tier 2 capital reckoned for capital adequacy 54034.12: Treatment Step 2) 44 Additional Tier 1 capital (AT1) 3550. financial and insurance entities that are outside the scope of regulatory consolidation.15 included in rows 5 or 34) issued by subsidiaries and held by third parties (amount allowed in group Tier 2) 49 of which: instruments issued by subsidiaries subject to phase out 50 Provisions 15029.16 out from Tier 2 48 Tier 2 instruments (and CET1 and AT1 instruments not 7763. 2017) to Pre-Basel III respect to DF . existing adjustments which are deducted from Tier 2 at 50%] of which: [INSERT TYPE OF ADJUSTMENT] 57 Total regulatory adjustments to Tier 2 capital 220. Basel III common disclosure template to be used during the transition of regulatory Amounts Subject Ref No. financial and insurance entities that are outside the scope of regulatory consolidation (net of eligible short positions) 56 National specific regulatory adjustments (56a+56b) 56a of which: Investments in the Tier 2 capital of unconsolidated insurance subsidiaries 56b of which: Shortfall in the Tier 2 capital of majority owned financial entities which have not been consolidated with the bank Regulatory adjustments applied to Tier 2 capital in 134.66 44a] Tier 2 capital: instruments and provisions 46 Directly issued qualifying Tier 2 instruments plus 12500.48 44a Additional Tier 1 capital (AT1) reckoned for capital 3550.34 (58a+58b) State Bank of India | Annual Report 2015-16 275 .21 53 Reciprocal cross-holdings in Tier 2 instruments 6. net of eligible short positions.03 58 Tier 2 capital (T2) 54034. where the bank does not own more than 10% of the issued common share capital of the entity (amount above the 10% threshold) 55 Significant investments in the capital banking. 2013 to December 31. (with adjustments (i.14 54 Investments in the capital of banking.34 58b Excess additional Tier 1 capital reckoned as Tier 2 0 capital 58c Total Tier 2 capital admissible for capital adequacy 54034. from April 1. 47 standardised approach 78 Provisions eligible for inclusion in Tier 2 in respect of 0 exposures subject to internal ratings-based approach (prior to application of cap) 79 Cap for inclusion of provisions of Tier 2 under internal 0 ratings-based approach 276 State Bank of India | Annual Report 2015-16 . (with adjustments (i.51 financial entities 74 Mortgage servicing rights (net of related tax liability) 75 Deferred tax assets arising from temporary 1123.06 exposures subject to standardised approach (prior to application of cap) 77 Cap on inclusion of provisions in Tier 2 under 18326.e.00 Risk Weighted Assets in respect of Amounts Subject to Pre-Basel III Treatment of which: [INSERT TYPE OF ADJUSTMENT] of which: … 60 Total risk weighted assets (60a + 60b + 60c) 1772683.625% 66 of which: bank specific countercyclical buffer requirement 0% 67 of which: G-SIB buffer requirement 0% 68 Common Equity Tier 1 available to meet buffers (as a percentage of risk weighted assets) National minima (if different from Basel III) 69 National Common Equity Tier 1 minimum ratio (if 5.16 Capital Ratios 61 Common Equity Tier 1 (as a percentage of risk 9.86 differences (net of related tax liability) Applicable caps on the inclusion of provisions in Tier 2 76 Provisions eligible for inclusion in Tier 2 in respect of 15029. from April 1.50% different from Basel III minimum) 70 National Tier 1 minimum ratio (if different from Basel 7.95 60c of which: total operational risk weighted assets 165867.00% Basel III minimum) Amounts below the thresholds for deduction (before risk weighting) 72 Non-significant investments in the capital of other financial entities 73 Significant investments in the common stock of 514. 2017) to Pre-Basel III respect to DF .125% CET1 requirement plus capital conservation and countercyclical buffer requirements.5 60b of which: total market risk weighted assets 140698.Pillar 3 Disclosures (Consolidated) as on 31st March 2016 Basel III common disclosure template to be used during the transition of regulatory Amounts Subject Ref No. 2013 to December 31.87% 63 Total capital (as a percentage of risk weighted assets) 12.92% 64 Institution specific buffer requirement (minimum 6.12: Treatment Step 2) 59 Total capital (TC = T1 + T2) [45 + 58c] 229014.67% weighted assets) 62 Tier 1 (as a percentage of risk weighted assets) 9.00% III minimum) 71 National total capital minimum ratio (if different from 9.61 60a of which: total credit risk weighted assets 1466117. expressed as a percentage of risk weighted assets) 65 of which: capital conservation buffer requirement 0. 136.78 Minority Interest 6.816.11 ii Deposits 2. 2013 to December 31. from April 1.823.926.238.38 of which: Other deposits (pl.267. Basel III common disclosure template to be used during the transition of regulatory Amounts Subject Ref No.857.17 of which: Customer deposits 2.859. - iii Borrowings 258.391.27 Total 2.48 143.79 of which: From banks 143. specify) .965.279.997.884.214.391. specify) .08 174.24 of which: From RBI 3.133.84 61.253.753.142.40 4. - of which: Capital Instruments 61.823.12: Treatment Step 2) Capital instruments subject to phase-out arrangements (only applicable between March 31.03. 2017) to Pre-Basel III respect to DF .76 180.92 190.230.239.96 of which: Others (pl.970.39 258.897.876.79 3.28 776.40 2.28 Reserves & Surplus 179.28 49.01 iv Other liabilities & provisions 271.64 2.254.2016 STEP-1 (`in crore) Balance sheet as in Balance sheet under financial statements regulatory scope of consolidation As on reporting date As on reporting date A Capital & Liabilities i Paid-up Capital 776.17 State Bank of India | Annual Report 2015-16 277 .48 of which: From other institutions & agencies ‑ 49.753.845. 2022) 80 Current cap on CET1 instrumnets subject to phase out arrangements 81 Amount excluded from CET1 due to cap (excess over cap after redemptions and maturities) 82 Current cap on AT1 instrumnets subject to phase out arrangements 83 Amount excluded from AT1 due to cap (excess over cap after redemptions and maturities) 84 Current cap on T2 instrumnets subject to phase out arrangements 85 Amount excluded from T2 due to cap (excess over cap after redemptions and maturities) # B7: Revenue & Other Reserves is taken net of Integration & Development Fund (` 5 crore) DF-12: COMPOSITION OF CAPITAL-RECONCILIATION REQUIREMENTS As on 31.e.05 Total Capital 186.55 of which: Deposits from banks 15. 2017 and March 31.498.956.034.496.57 2.17 15. (with adjustments (i. 795.374.474. .795.238.267.281.26 73.06 v Other assets 175.39 258.66 1.40 2.66 B8 Minority Interest 6.22 945.19 2.582.859.254.845.870.17 of which: Customer deposits 2.19 of which: Deferred tax assets 1.64 2.32 vi Goodwill on consolidation 945.81 0.48 B3 of which: Investment Reserve 1.71 5.22 vii Debit balance in Profit & Loss account .300.30 171.) 41.870.769.239.391.823. - iii Borrowings 258.813.161.190.40 4.17 STEP-2 (`in crore) Balance sheet as in Balance sheet under Reference financial statements regulatory scope of number consolidation As on reporting date As on reporting date A Capital & Liabilities i Paid-up Capital 776.424.79 3.79 B5 of which: Revaluation Reserve 1.087.63 6.76 180.279.28 776.78 B of which: Statutory Reserve 61.189.897.08 625.03 1.260.99 of which: Others (Commercial Papers.080.214.810.816.498.34 1.05 Total Capital 186.19 3. - Total Assets 2.133.55 of which: Deposits from banks 15.391.17 15.857.Pillar 3 Disclosures (Consolidated) as on 31st March 2016 (`in crore) Balance sheet as in Balance sheet under financial statements regulatory scope of consolidation B Assets i Cash and balances with Reserve Bank of India 160.28 B7 of which: Balance in Profit & Loss Account 3.08 174.460.424.300.884.78 ii Investments 705.59 B2 of which: Share Premium 49.760.499.79 1.97 49. specify) .13 of which: Shares 23.24 of which: Goodwill and intangible assets 2.292.49 74.28 776.354.350.79 278 State Bank of India | Annual Report 2015-16 .876.38 of which: Other deposits (pl.956.11 ii Deposits 2.970.292.85 of which: Loans and advances to banks 74.86 34.57 2.253.19 of which: Government securities 544.279.374.68 14.03 B6 of which: Revenue and Other Reserve 52.16 61.89 1. Mutual Funds etc.759.136.16 B1 of which: Capital Reserves 3.352.28 A of which: Amount eligible for CET 1 776.176.154.83 874.769.10 510. A2 Reserves & Surplus 179.40 1.49 of which: Loans and advances to customers 1.281.28 A1 of which: Amount eligible for AT1 .509.255.499.90 41.57 160.547.062.034.28 of which: Subsidiaries / Joint Ventures / Associates 2.11 of which: Other approved securities 3.230.79 B4 of which: Foreign Currency Translation Reserve 6.844.30 of which: Debentures & Bonds 89.24 of which: From RBI 3.823.83 Balance with banks and money at call and short notice 43.709.48 49.968.963.36 iv Fixed assets 15.709.327.38 iii Loans and advances 1.895.734. 90 41.26 73.78 ii Investments 705.870. Mutual Funds etc.496.08 625. - of which: Other intangibles (excluding MSRs) 2.19 of which: Deferred tax assets 1.68 14.968.13 of which: Shares 23.24 of which: Goodwill .884.734.19 of which: Government securities 544. - Total 2.69 B1 + B2 + B7 (#) + B8 3 Accumulated other comprehensive income (and other reserves) 5726.260.27 of which: DTLs related to goodwill .57 160.55 parties (amount allowed in group CET1) 6 Common Equity Tier 1 capital before regulatory adjustments 175502.22 945.189.18 D * 80% * B7: Revenue & Other Reserves is taken net of Integration & Development Fund (` 5 crore) State Bank of India | Annual Report 2015-16 279 .965.11 of which: Other approved securities 3.161.350.96 of which: Others (pl.30 of which: Debentures & Bonds 89.970.281.99 Associates of which: Others (Commercial Papers.81 0.85 of which: Loans and advances to banks 74. - Total Assets 2. (`in crore) Balance sheet as in Balance sheet under Reference financial statements regulatory scope of number consolidation As on reporting date As on reporting date of which: From banks 143.709.255.897.062.92 190.38 iii Loans and advances 1.01 iv Other liabilities & provisions 271.230.49 74.292.897.64 2.22 D vii Debit balance in Profit & Loss account .844.509.760.71 5.83 Balance with banks and money at call and short notice 43.10 510.997.424.06 v Other assets 175.49 of which: Loans and advances to customers 1.36 iv Fixed assets 15.89 1.327.76 A1 + B3 joint stock companies) capital plus related stock surplus 2 Retained earnings 115616.176.870.66 1.281.753.970.48 143.582. - of which: DTLs related to intangible assets .30 171.759.84 61.963.17 B Assets i Cash and balances with Reserve Bank of India 160.17 STEP-3 (` in crore) Common Equity Tier 1 capital (CET1): instruments and reserves Component of Ref No.884.136.460.292.64 2.142.41 7 Prudential valuation adjustments 0 8 Goodwill (net of related tax liability) 756. regulatory capital (with respect to reported by bank DF .32 C vi Goodwill on consolidation 945.795.12: Step 2) 1 Directly issued qualifying common share (and equivalent for non . 50545.86 34.709.28 of which: Subsidiaries / Joint Ventures / 2.190.28 49.48 of which: From other institutions & agencies 49.753.230.154.41 4 Directly issued capital subject to phase out from CET1 (only 0 applicable to non-joint stock companies) 5 Common share capital issued by subsidiaries and held by third 3613. - of which: Capital Instruments 61.136.) 41.19 2.547.34 1.474. specify) .795.080.087.40 1.926. 16 4 Total unrealized gains (losses) 40. LEVERAGE RATIO EXPOSURE MEASURE LEVERAGE RETURN AS ON 31.e.33 5 Total latent revaluation gains (losses) 0.54 280 State Bank of India | Annual Report 2015-16 .66 6 Any amounts of the above included in Tier 1 and/or Tier 2 capital 0.03.2016 STATE BANK OF INDIA (GROUP) DF-17. This includes the accounting and valuation of HTM securities.36 8 Leverage ratio exposure 33403968.60 for accounting purposes but outside the scope of regulatory consolidation 3 Adjustment for fiduciary assets recognised on the balance sheet pursuant to the operative accounting 0 framework but excluded from the leverage ratio exposure measure 4 Adjustments for derivative financial instruments 149. Subsidiaries and RRBs. techniques and valuation methodologies used.1 of this annex) with respect to equity risk. as well as the fair value of those investments. These are objectives including for relationship and strategic strategic in nature reasons. repos and similar secured lending) 995813. a comparison to publicly quoted share values where the share price is materially different from fair value. including key assumptions and practices affecting valuation as well as significant changes in these practices Quantitative Disclosures as on 31.C-1. consistent with the bank’s 15.03.24 methodology.e.93 3 The cumulative realized gains (losses) arising from sales and liquidations in the reporting period 3.DISCLOSURE FOR BANKING BOOK POSITIONS Qualitative Disclosure 1 The general qualitative disclosure (Para 2.35 7 Capital requirements broken down by appropriate equity groupings.financial. including the amount that can be classified as: • Publicly traded and 3424. in Crs.60 6 Adjustment for off-balance sheet items (i.596.53 for quoted securities.3 valuation and accounting of equity holdings in of the Bank’s Annual Report 2014-15 regarding accounting the banking book.) 1 Value disclosed in the balance sheet of investments. as well as the aggregate amounts and the type of equity investments subject to any supervisory transition or grandfathering provisions regarding regulatory capital requirements TABLE DF-17: SUMMARY COMPARISON OF ACCOUNTING ASSETS VS. 1316. 2 The types and nature of investments. XX Discussion of important policies covering the As detailed in Schedule 17 .77 5 Adjustment for securities financing transactions (i. including : XX Differentiation between holdings on which capital All equity investments (domestic) in HTM Category are gains are expected and those taken under other made in Associates.Pillar 3 Disclosures (Consolidated) as on 31st March 2016 TABLE DF-16: EQUITIES . leverage ratio exposure measure ITEM ` (In million) 1 Total consolidated assets as per published financial statements 29708976.para 1.40 2 Adjustment for investments in banking.73 sheet exposures) 7 Other adjustments -51018.25 • Privately held 7988.Summary comparison of accounting assets vs. conversion to credit equivalent amounts of off-balance 3467274. insurance or commercial entities that are consolidated -866674.2016 (Amt.3 and C-2-para 2. 60 Other off balance sheet exposures 17 Off-balance sheet exposure at gross notional amount 9266142.968.16 and 19) 33.60 13 (Netted amounts of cash payables and cash receivables of gross SFT assets) 0 14 CCR exposure for SFT assets 0 15 Agent transaction exposures 0 16 Total securities financing transaction exposures (sum of lines 12 to 15) 995813.403.40 18 (Adjustments for conversion to credit equivalent amounts) -5798867.73 Capital and total exposures 20 Tier 1 capital 1749796. net of eligible cash variation margin) 58.540.24 State Bank of India | Annual Report 2015-16 281 .56 21 Total exposures (sum of lines 3.67 19 Off-balance sheet items (sum of lines 17 and 18) 3467274. but including collateral) 28842301.44 Derivatives exposures 4 Replacement cost associated with all derivatives transactions (i.73 5 Add-on amounts for PFE associated with all derivatives transactions 91. after adjusting for sale accounting transactions 995813.54 Leverage ratio 22 Basel III leverage ratio 5.80 2 (Asset amounts deducted in determining Basel III Tier 1 capital) -51018.04 6 Gross-up for derivatives collateral provided where deducted from the balance sheet assets pursuant to 0 the operative accounting framework 7 (Deductions of receivables assets for cash variation margin provided in derivatives transactions) 0 8 (Exempted CCP leg of client-cleared trade exposures) 0 9 Adjusted effective notional amount of written credit derivatives 0 10 (Adjusted effective notional offsets and add-on deductions for written credit derivatives) 0 11 Total derivative exposures (sum of lines 4 to 10) 149.11.056.2016 DF-18 -Leverage ratio common disclosure template ITEM (` In Million) On balance sheet exposures 1 On-balance sheet items (excluding derivatives and SFTs.77 Securities financing transaction exposure 12 Gross SFT assets (with no recognition of netting).e.TABLE DF-18: LEVERAGE RATIO COMMON DISCLOSURE TEMPLATE As on 31.596.36 3 Total on-balance sheet exposures (excluding derivatives and SFTs) (sum of lines 1 and 2) 28791283.03. c) adverse impact on the solvency. SBI-SG Global Securities Services Pvt. State Bank of Travancore Bank SBI Indonesia SBI Global Factors Ltd. * Entities covered: BANKING – DOMESTIC BANKING . both as to their commercial terms and as to matters such as provision of security.2016 Qualitative Disclosure In respect of Group entities * [Overseas Banking entities. Disclosure Practices All Group entities adhere to / follow good disclosure practices.sbi. Ltd. 2016 have been disclosed separately on the Bank’s website under a separate link http://www.sbi. Ltd. Common marketing. liquidity and profitability of the individual entities within the Group.GR: Additional Disclosures on Group Risk As on 31. SBI Payment Services Pvt.www. SBI Pension Funds Pvt.Pillar 3 Disclosures (Consolidated) as on 31st March 2016 Table DF. branding and use of SBI’s Symbol No Group entity has made use of SBI symbol in a manner that may indicate to public that common marketing.BANKING State Bank of India State Bank of India (California) SBI Capital Markets Ltd. Details of Financial Support. Ltd.com under the link Corporate Governance – Basel – 3 Disclosures’ Section Disclosures on indicators for identification of Global Systemically Important Banks (G-SIBs) as on 31st March. branding implies implicit support of SBI to the Group entity.co. Ltd. Adherence to all other covenants of Group Risk All covenants of the Group Risk Management Policy have Management policy meticulously been complied with by the Group entities. Moscow SBI Funds Management Pvt. Disclosures pertaining to key features of regulatory capital instruments (DF-13) and the full terms and conditions of regulatory capital instruments (DF-14) have been disclosed separately on the Bank’s website. e) operation of ‘Cross Default Clauses’ whereby a default by a related entity on an obligation (whether financial or otherwise) is deemed to trigger a default on itself. Intra-group transactions which may lead to the following have been broadly treated as ‘Financial Support’: a) inappropriate transfer of capital or income from one entity to the other in the Group.OVERSEAS NON . State Bank of Bikaner & Jaipur SBI Canada Bank SBI Cards & Payment Services Pvt. Bank SBI Botswana Ltd. SBI DFHI Ltd. SBI General Insurance Company Ltd.# if any No Group entity has provided / received Financial Support from any other entity in the Group. b) vitiation of the Arm’s Length Policy within which the Group entities are expected to operate. State Bank of Mysore Commercial Indo Bank LLC.in/ www. SBI Life Insurance Co.statebankofindia. d) evasion of capital or other regulatory requirements.co. State Bank of Hyderabad SBI Mauritius Ltd.03. Arm’s Length Policy in respect of Intra Group All Intra-Group transactions within the State Bank Group have been Transactions effected on Arm’s Length basis. State Bank of Patiala Nepal SBI Bank Ltd. Domestic Banking and Non-Banking entities] General Description on Corporate Governance Practices All Group entities adhere to good Corporate Governance practices. Ltd. Ltd.in/portal/web/corporate- governance/g-sib-indicators 282 State Bank of India | Annual Report 2015-16 . or other Government Gazetted Officer or an Officer of the State Bank of India. or signed by its attorney duly authorized in writing. the Folio No. Madame Cama Road. No Proxy shall be valid unless it is duly stamped and unless it. together with the power of attorney or other authority (if any) under which it is signed. The State Bank of India. Shares & Bonds Dept. . Magistrate. 14th Floor.. should be a Director of the Central Board/Member of the Local Board/Shareholder of the State Bank of India. Provided that an instrument of proxy shall be sufficiently signed by any shareholder. Registrar or Sub-Registrar of Assurances. power of attorney. (In case a power of attorney is already registered with the Bank. or in the case of joint holders. Corporate Centre. or in the case of a Company. if his mark is affixed thereto and attested by a Judge.400 021 is authorised to accept the proxy form. is deposited with the Central Office or other office designated from time to time by the Chairman or Managing Director in this behalf. if any. unless appointed by a Company.) ____________________________________ shares on the Register of shareholders at the Central office of the Bank do hereby appoint________________________ resident of __________________________ (or failing him/her____________________________ resident of_____________________) as my/our proxy to vote for me/us and on my/our behalf at the meeting of the shareholders of the State Bank of India to be held at _____________________on the _________________________________ day of _______________________________ and at any adjournment thereof. it is signed by the shareholders first named in the Register or his attorney duly authorised in writing. and Registration No. not less than 7 clear days before the date fixed for the meeting.: ______________________________ I/We _______________________________________________________________________________________________ ______________________________________ resident of ________________________________ being (a) shareholder (s) of the State Bank of India holding (No. of the power of attorney be also mentioned).: _______________________________________ DP/Client-ID No. Mumbai . it is signed by him or by his attorney duly authorised in writing. or a copy of that power of attorney or authority certified by a Notary Public or a Magistrate. Justice of the Peace. authority or any other documents in this regard. other than an officer or employee of the State Bank of India. State Bank Bhavan. for any reason. Dated this _________________________ day of ____________________________ 15 paise Revenue Stamp No instrument of proxy shall be valid unless in the case of an individual shareholder. Nariman Point. unable to write his name. it is executed under its Common Seal. who is.State Bank of India Proxy Form Folio No. A proxy. ii) Every shareholder. iii) Alternatively.Determination of Voting Rights: i) Subject to the provisions contained in section 11 of the Act. iii) The duly authorized person representing the Central Government shall have one vote on a show of hands and. affixing the branch seal/stamp to evidence the attestation. (in case of physical holding) From To Whether having voting rights in terms of State Bank of India General Regulation R. shall have one vote for each fifty shares held by it for the whole period of three months prior to the date of such meeting. In person as a shareholder As a proxy As a duly authorised representative TOTAL Signature Attested (Signature of Shareholder) Name: Designation: Seal/Stamp: Note: i) The Branch Managers/Managers of Divisions of the branches of the State Bank of India (whose signatures are circulated) are authorised to attest the signature of the shareholders. have one vote for each fifty shares held by him or it. Voters Identity Card or such other similar acceptable evidence. at such meeting. other than the Central Government. on production of satisfactory evidence of his/her identification such as Passport/Driving Licence with photograph. the signature may be attested by the Branch Manager of that Bank. the shareholder may have his/her signature attested by a Notary or a Magistrate. .: Full Name of the Shareholder/ First holder: (as appearing on share certificate/recorded with DP) ______0____________________________________________________ Registered address:___________________________________________________________________________________ ________________________________________________________________________________ PIN Total number of Shares held: Share Certificate Nos. ii) If the shareholder maintains account with a bank other than State Bank of India. not being a company is present in person or by proxy or who being a company is present by a duly authorized representative or by proxy.. in case of Poll by ballot.State Bank of India Annual General Meeting of shareholders attendance slip Date: Folio No: DP/Client-ID No. entitled to vote as aforesaid who. each shareholder who has been registered as a Shareholder for a period of not less than three months prior to the date of a general meeting shall. iv) The signature of shareholders can also be got attested at the venue of the Meeting by the designated officers of the State Bank of India. * Regulation 31 . shall have one vote on a show of hands and in case of a poll shall have one vote for each fifty shares held by him or it for the whole period of three months prior to the date of such meeting. in case of a poll. on production of suitable evidence of his/her shareholding to the branch where the shareholders may be maintaining account. 31* Yes / No If yes number of votes to which he/she is entitled. Shareholders/Bondholders are requested to avail Nomination Facility. Andheri (East) Mumbai – 400093 Tel. I will not hold State Bank of India responsible.in /corporate governance /SHARE HOLDER INFO for latest updates. Bank Name: b. No. PF INDEX NO. Email address: (For all future communication including. Part B. Folio No. Unit: State Bank of India Plot NO.. hereby. Nos. . Branch Name: (Complete address) Pin: c. Account (code 10) or Current Account (code 11) or Cash Credit (code 13) e. & Mobile No.Digit MICR Code Number of the Bank and Branch: (as appearing on the MICR cheque issued by the Bank) d. 4. 2. Place: Date: (Signature of the first holder) Note:- 1. Account Type: (S.sbi. Present Address Pin: Tel.: (to be filled in only by SBI employees holding SBI shares) 5. B-5. 3. 5. quoting their DPID/Client ID.For Shareholder(s) use M/s Datamatics Financial Services Ltd. If the transaction is delayed or not effected at all for reasons of incomplete or incorrect information.co. Visit www. 9. receipt of E-Annual Report) 3. Particulars of Bank Account a. declare that the particulars given above are correct and complete.B. MIDC. Please attach a blank “cancelled” cheque or photocopy thereof) I. Nomination forms are available on Bank’s website under link corporate governance / Nomination forms. 022 – 66712198 / 2199 / 2202 INVESTOR’S OPTION TO RECEIVE PAYMENT THROUGH CREDIT CLEARING MECHANISM / ELECTRONICALLY AS APPLICABLE 1. Cross lane. Shareholder(s) holding shares in Electronic (Demat) Form are requested to notify all the above particulars to their Depository Participant (DP). Investor’s Name (i) (ii) (iii) 2. Shareholders are requested to opt for converting their physical holding into Demat account.: (Only in case of physical shareholders) 4. Account Number (as appearing on the cheque book. e converted into electronic form. all unpaid dividend amount of period prior to the above amendment was already transferred to the said “unpaid dividend account. In view of the above. .com. as the case may be. to receive dividend electronically.com) of your choice for opening the Demat account. If you are receiving dividend in the physical form. Automatic credit into demat account. bad delivery in settlement process. M/s Datamatics Financial Services Ltd. Shareholders holding shares in physical form shall have to send their updated information / changes to the Registrar & Transfer Agent (RTA). Change in address recorded with DP gets registered electronically with all companies in which investor holds securities eliminating the need to correspond with each of them separately. Shares will get converted into electronic form and will automatically be credited to your Demat Account.A Green Initiative Dear Shareholder.. As per the said section. damage due to fire. e-mail. within thirty days from the date of declaration shall be transferred to a special account called as “unpaid dividend account”. all shareholders are requested to ensure that any dividend payable to them. are claimed without any delay. through email to sbigreenar@dfssl. we are issuing Annual Report in electronic form to those shareholders whose e-mail addresses are available. 2010. Kind Attention of shareholders is brought to Section 38A of the State Bank of India Act. please approach any Depository Participant (DP) (like SBICAP Securities Limited toll free number 1800223345 email. Holding investments in equity.helpdesk@sbicapsec. but also bring in better efficiency in communication by obviating transit delays and losses. debt instruments and Government securities in a single account. some of you are still retaining the shares in physical form. Further. Fill in a Demat Request Form (DRF) and handover the relative shares certificate(s) to your DP for Dematerialisation of your shares. The various benefits derived out of dematerialization of shares are:- Immediate transfer of securities.” Any money transferred to the unpaid dividend account of the State Bank as above which remains unpaid or unclaimed for a period of seven years from the date of such transfer shall be transferred by the Bank to the Investor Education and Protection Fund established under Section 125 of the Companies Act. If you are holding shares in physical form. Your Bank invites you to participate in the Green initiative by enabling the Bank to communicate with you through electronic mode i. 2013. We are sure that you will appreciate the “Green Initiative” taken by your Bank and hope that you will enthusiastically participate in the effort. you are requested to furnish/ update bank account details with DP/RTA. for being utilised for the purpose and in the manner specified in that section. Green Initiative in Corporate Governance In accordance with SEBI guidelines.. We request you to join us in this initiative by updating your email ID with your Depository Participant. No stamp duty on transfer of securities Reduction in risks associated with holding securities in paper form such as theft. 1955 inserted with effect from 15.09.e.2010 by the State Bank of India (Amendment) Act. wear & tear etc. arising out of bonus/ split/consolidation/ merger etc. if your holding is in demat form. Further. while most of you hold shares of your Bank in demat form. The Shares held by you in physical form can be easily dematerialized i. a dividend declared by the State Bank which has not been paid to a shareholder or claimed by any eligible shareholder. Transmission of securities is done by DP eliminating correspondence with companies. of shares. It will not only contribute to conservation of environment. fake / Forged securities etc. .......................................................................... 55 About SBI. 10 International Operations....................................................... 104 Personal Banking........................................................................... 30 Vigilance Mechanism...................................................................................... 71 Committees of the Board/Members of Human Resources and Training......................................................................................................................... 33 Corporate Social Responsibility...... 128 Other New Business Initiatives........................................................................................ 34 Corporate Governance....................................................................................................................................................................................................................................................................................................................................................................................01 CORPORATE BANKING GROUP................................................................... 55 SBI’s Journey Through Numbers................................... 53 Basel (III) ............... 252 Efficiency & Cost Control.................... 87 (I) Economic Backdrop and Banking Environment..... 35 Business responsibility report... 39 Financial Statements Balance Sheet....................................................................... 03 Transaction Banking Unit.............. 16 (iv) Support and Control Operations................................. 52 State Bank of India (consolidated)........................ 22 Risk Management ......................................... 12 Stressed Assets Management................ 54 Disclosures on indicators for identification of Global Systemically Important Banks (G-SIBs)............................................ 65 Financial Highlights for last 10 years.......................................................................... 58 Ratings ....................................................................................... 56 Smart Bank for India on the Go......... 34 (v) Associate & Subsidiaries............................................................................................................................................................................................ 89 (III) Core Operations............................... Spine to be adjusted by printer contents Notice.............................. 81 Directors’ Report Official Language............................... 94 National Banking Group............................ profit & Loss Accounts & Small & Medium Enterprises................................................................................................................................................................................................ 127 Anytime Channels........................... 14 TREASURY OPERATIONS........................................ 04 Project Finance & Leasing. 46 Report of the Auditors Rural Banking................................................................................................................................................................... 02 Corporate Banking................. 09 Mid Corporate Banking..................................................................................................... 282 Spine to be adjusted by printer ................................... 76 The Chairman’s Message..........................................................Pillar 3 Disclosures................................................... 89 (II) Financial Performance........................ 50 State Bank of India (standalone)........... 59 Sbi Group Structure...... 71 Local Boards/Members of Central Management Committee/Bank Auditors........................................ 18 Information Technology............ 60 Performance Indicators............... 202 Government Business............................................................. 68 Central Board of Directors. 400021 theofficialsbi statebankofindiaofficial Annual Report 2015-16 Spine to be adjusted by printer . Madame Cama Marg. Maharashtra . Spine to be adjusted by printer State Bank of India | Annual Report 2015-16 A SMART BANK. FOR IND INDIA ON THE GO… State Bank Bhavan Follow us on : Corporate Centre. Mumbai.