State Bank of India
Directors Reports
I. Economic Backdrop and Banking Environment
1. Global Economic Scenario
The recovery of the global economy was hampered in Q4 of 2021, due to
the resurgence of omicron variant which led many countries to re-impose lockdowns, travel
restrictions and other containment measures which disrupted economic activities and supply
chains. The domestic economic scenario has also been affected by geo-political events. RBI
has lowered the FY23 GDP growth forecast to 7.2% from the earlier guidance of 7.8%. While
possible upside could emanate from sustained domestic demand, Government's thrust on
capex, a normal monsoon and healthier corporate balance sheets, the heightened
geo-political tensions do pose downside risks to GDP growth.
Towards the end of FY 2022, the Russia- Ukraine conflict has led to
heightened financial volatility. Price of crude and other commodities spiralled to
multi-year highs. Amidst unsettled financial market conditions, demand for safe havens
increased, thereby increasing the price of gold while diversification of reserves by
central banks anchored other assets and currencies too. Meanwhile, emerging markets
continue to witness capital outflows, as the US Fed accelerated its tapering of asset
purchases, recently raised the Fed funds rate twice, and signalled aggressive rate hikes.
Against this backdrop, global growth is expected to moderate to 3.2% in 2022.
Meanwhile, inflation is likely to remain elevated in the near term, and
inflationary pressures are likely to subside in the later part of the year. The recent
lockdown in China is a grim reminder of the brittle recovery and the necessity of adhering
to appropriate measures to check the unabated spread of the virus.
The Russia-Ukraine conflict and lockdowns in China as part of its zero-
tolerance approach towards the pandemic are weighing down on the global trade dynamics.
This has led the WTO to slash the global goods trade growth forecast to 3% in 2022 from
its previous forecast of 4.7%.
Prolonged situation in Ukraine along with unanchored inflation
expectations and supply disruptions pose a significant downside risk to global growth
prospects. With growth clouded by risks and uncertainty, it is imperative for countries,
especially the developing ones, to continue to strengthen their digital and health
infrastructure. All countries also need to focus on tackling climate change and
growth-enhancing policy interventions to promote inclusive development and reforms that
broaden economic activity.
2. India?s Economic Scenario
The recovery in real GDP growth with the ebbing of the second wave lost
some momentum in H2FY2022 with the emergence of the Omicron variant which was fortunately
short lived. However, India's economy grew by 8.7% in FY2022 as against the NSD's earlier
estimate of 8.9%.
Gross Value Addition in agriculture and allied activities expanded by
3.3% in FY2022, supported by adequate monsoon, good reservoir levels and improved soil
moisture, which helped rabi acreage increase by 1.5% over the previous year. Food grain
production touched a new record in FY2022, with both Kharif and Rabi output exceeding the
final estimates for the year.
Industrial activity lost some momentum in the second half of FY2022, as
manufacturing was affected by supply- side shortages and input cost pressures. Mining
activity was supported by coal and natural gas, offsetting the contraction in crude oil
production. Hence, industrial GVA decelerated sharply from 23.1% in H1 to 0.9% in H2.
Services sector activity grew by 7.1% in H2 and crossed its
pre-pandemic level. The contact-intensive services, viz., trade, hotels, transport, and
communication, inched towards normalisation, though their rebound was held back by the
Omicron variant.
Merchandise exports and imports remained buoyant in FY2022. Exports at
$42.2 billion in March 2022 touched a new record and remained above $30 billion for the 13th
consecutive month. During FY2022, merchandise exports at $419.6 billion surpassed the
target of $400 billion. The $300 billion mark in exports was achieved in FY12, and it took
almost a decade to add an incremental $100 billion in exports.
Merchandise imports reached an alltime high of $60.7 billion in March
2022 and remained above $50 billion for the seventh consecutive month. Overall, India's
merchandise exports increased by 43.8% in FY2022 vis-a-vis a decline of 6.9% in FY2021,
while imports grew by a whopping 55.1% in FY2022 compared to a 16.9% contraction in
FY2021. India recorded a current account deficit of 1.2% of GDP in April-December 2021
against a surplus of 1.7% in April- December 2020.
Though CPI inflation is projected to average below 6.0% in FY2023 by
RBI, there remain several risks to this forecast. The risks could emanate from a further
hardening of global crude and other commodity prices due to geopolitical tensions, longer
supply chain disruptions, a larger pass-through of input cost pressures and volatility in
the global financial markets induced by an affirmative normalisation of monetary policy by
the advanced economies. An early end to supply chain disruptions, a muted pass-through to
output prices, correction in global commodity prices and, an easing of geopolitical
tensions would help in containing inflation within the projected levels.
As per RBI estimates, real GDP is expected to grow by 7.2% in FY2023.
Upside to growth could emanate from sustained expansion in domestic demand, a boost in
private investment activity, buoyed by the Government's thrust on capital expenditure, a
normal monsoon and healthier corporate balance sheets.
3. Banking Environment
The COVID-19 pandemic was the first significant test of the global
financial system since the global financial crisis of 2008. Globally and in India, the
banking and non-banking sectors have weathered the COVID-19 disruptions reasonably well,
supported by cogent policy measures, which helped maintain the soundness of the banking
and financial system. The timely policy interventions both by the Government and the RBI
helped alleviate the stress experienced by individuals, MSMEs, corporates and lenders by
making credit available on easy terms.
With the gradual return of normalcy, signs of recovery became visible
in H1 of FY2022 during the festive season. ASCB credit grew by 9.6% in FY2022, compared to
5.6% growth in FY2021. Retail loans have emerged as the primary driver of bank credit in
FY 22 and have now the largest share (28.4%) in the outstanding credit of ASCBs,
displacing industrial loans (26.7%).
However, ASCB's aggregate deposits growth slowed to 8.9% in FY2022,
compared to 11.40% in FY2021, due to the base effect, lower interest rates and a flight to
capital markets / digital asset classes in the expectation of higher returns. Amidst
improving credit offtake, growth in banks' holdings of G-secs decelerated, pulling down
their excess SLR investments to 9.6% of net demand and time liabilities (NDTL) as of March
25, 2022, from 11% as at the end of March 2021.
The asset quality of ASCBs improved during FY2022, with the
non-performing assets (NPA) ratio declining to 6.5% in December 2021 from 6.8% a year ago.
Digital transactions continued to register robust growth in FY2022.
Retail payments expanded strongly across the payment modes. UPI witnessed near 100% growth
in volume and value of transactions. RTGS, NEFT, IMPS, and NACH also demonstrated
remarkable growth. Transactions under the Bharat Bill Payment System (BBPS) clocked a
triple-digit increase in volume.
4. Outlook
Towards the end of FY2022, the buildup of tension between Ukraine and
Russia and the subsequent sanctions have led to supply chain risks becoming more
pronounced. Increase in prices of agricultural commodities, energy products, metals and
other essential commodities have had a cascading impact on the global economy and
consequently the banking sector. The build-up of inflation has prompted aggressive rate
hikes in advanced economies.
Considering these developments, the Monetary Policy announcement by RBI
in April 2022 highlighted considerable risks that need constant monitoring and warrant
concrete actions while keeping rates unchanged. This was, however followed by an off-cycle
policy rate and CRR hike by RBI in early May 2022.
The normalisation of LAF corridor through the introduction of Standing
Deposit Facility (SDF) and subsequent rate hike in May 2022 clearly indicate that the
interest rate cycle is turning. In the G-Sec market, yields have gone up since the rate
hike announcement in May 2022.
India's GDP growth for FY2023 has been projected at 7.2%, which is
among the highest in the world. Nonetheless, there is uncertainty on how the demand will
pick up during this financial year. Private final consumption is still below the
prepandemic year and may see some erosion in the current year due to higher inflation.
However, investment demand has picked up gradually and there has been substantial increase
in new investment announcements amounting to '19 trillion in FY2022. Further, sectors
benefiting from Production Linked Incentive (PLI) scheme are also expected to see an
increase in capex in FY2023. Going forward, good prospects of Rabi output augur well for
rural demand. The recent opening of precautionary vaccine dose for all segments of the
population is also a positive development.
In this backdrop, the Bank's business needs careful assessment. Your
bank has calibrated its business strategy in tandem with evolving needs, constantly
adopting best practices while prioritising the safety of hundreds of millions of customers
and our people, without compromising on delivery of uninterrupted services since the
outbreak of the pandemic. Yet the emergence of geopolitical risks alongside the recurrent
bouts of COVID-19 infections have again underscored the need to be on guard and
re-evaluate the adequacy of contingency buffers to cover unanticipated losses.
The conflict in Ukraine has also opened up opportunities for India
notably in agriculture sector. Further, free trade agreements with Australia and the UAE
are also expected to create a number of growth opportunities. Reordering of global supply
chains also presents a unique opportunity to India, a proposition that holds tremendous
potential.
To sum up, the outlook on the economy and the Bank's business will
depend upon the evolving geopolitical situation and its impact on global commodity prices
and logistics. Opening up of the economy has reduced the need for a fresh stimulus package
and the current momentum appears sustainable. Thus, for the Bank it is imperative that
business keeps adapting to the new operating environment.
II. Financial Performance
Net Profit and Operating Profit
The Net profit increased by 55.19% to '31,675.98 crore in FY2022 from
'20,410.47 crore in FY2021. The Operating Profit of your Bank for FY2022 increased by
5.22% to '75,292.37 crore from '71,554.15 crore in FY2021 (Including exceptional item of
'1,539.73 crore from stake sale from SBI Life in FY2021).
Net Interest Income
Net interest income increased by 9.03% to '1,20,707.59 crore in FY2022
from '1,10,710.00 crore in FY2021. Total interest income increased from '2,65,150.63 crore
in FY2021 to '2,75,457.29 crore in FY2022 registering a growth of 3.89%. Total interest
expenses increased from '1,54,440.63 crore in FY2021 to '1,54,749.70 in FY2022. Interest
expenses on deposits during FY2022 recorded a decline of 0.83%,compared to the previous
year.
Other Income
Other income (excluding exceptional item) decreased by 3.32 % to
'40,563.91 crore in FY2022 from '41,956.64 crore in FY2021.
Operating Expenses
Operating expenses (excluding exceptional item) of the Bank increased
by 4.03% to '85,979.13 crore in FY2022 from '82,652.22 crore in FY2021.
Provisions and Contingencies
Total provision and contingency decreased by 29.22% from '51,143.68
crore in FY2021 to '36,198.00 crore in FY2022. Major provisions made in FY2022: Provision
of '14,086.85 crore for non- performing assets (as against 27,244.35 crore in FY2021) and
Investment Depreciation of '3,440.10 crore (as against '3,014.50 crore in FY2021). The
Provisioning to Gross Non-Performing Assets ratio (including AUCA) of the Bank as on 31st
March, 2022 is 90.20% (Previous Year 87.75%). PCR (excluding AUCA) as on 31st
March 22 is 75.04% (70.88% as on March 21).
Assets and Liabilities
Total assets of your Bank have increased by 9.99% to '49,87,597.41
crore as at the end of March 2022 from '45,34,429.63 crore at the end of March 2021.
During the period, the loan portfolio increased by 11.61% to '27,33,966.59 crore from
'24,49,497.79 crore. Investments increased by 9.60 % to '14,81,445.47 crore from
'13,51,705.21 crore. A major portion of the investment in the domestic market was in
government securities.
Your Bank's aggregate liabilities (excluding capital and reserves) rose
by 9.97% to '47,07,509.35 crore as on 31st March 2022 from '42,80,554.44 crore
as on 31st March 2021. The deposits rose by 10.06% and stood at '40,51,534.12
crore as on 31st March 2022 against '36,81,277.08 crore as on 31st March
2021. The borrowings increased by 2.10 % to '4,26,043.38 crore as at the end of March 2022
from '4,17,297.70 crore as at the end of March 2021.
Reserves and Surplus
An amount of '9,502.79 crore (as against '6,123.14 crore in FY2021) was
transferred to Statutory Reserves. An amount of '538.16 crore (as against '1,465.12 crore
in FY2021) was transferred to Capital Reserves. An amount of '4,647.87 crore in FY2022 (as
against '1,928.20 crore in FY2021) was transferred to Investment Fluctuation Reserve.
Dividend
Your Bank has declared a dividend of '7.10 per share @ 710% for the
year ended March 31, 2022.
Progress of Implementation of IND AS
Steering Committee headed by Managing Director (Stressed Assets, Risk
& Compliance) has been monitoring implementation of Ind AS in the Bank. Your Bank is
already geared up for implementation of Ind AS. However, implementation of Ind AS in Banks
has been deferred by RBI until further notice.
III. Core Operations
1. Retail & Digital Banking Group
Retail and Digital Banking is the largest business vertical of the
Bank, with 99.45% of total branches and 98.15% of the entire human resource of your Bank
and comprising eight strategic business units. Your Bank is committed to customer delight
at all its branches. The ever- evolving customer preferences, especially amongst the
younger population is transforming the retail banking landscape.
Your Bank's customer base is steadily increasing across the country,
making Retail Banking the most prolific segment of your Bank, both in terms of deposit
mobilisation and extending customised credit. Your Bank continues to be the most prominent
Home Loan provider in the country and the largest dispenser of Education Loans,
demonstrating its steadfast commitment to serving society.
Your Bank continues to be at the forefront of the digital banking
domain with a steady stream of technology-driven innovations across various channels -
digital, mobile ATM, internet, social media and branches. It has a multi-channel delivery
model offering its customers a wide choice.
A. Personal Banking
1. Home Loan
Your Bank continues to be the Largest Home Loan provider in the
country. Even though outbreak of the 2nd wave of pandemic affected real estate
badly, resumption of activities with relaxations in lockdowns pan India has helped in
gathering momentum.
The HL/HL related portfolios of your Bank has grown from about '1 lakh
crores in 2011 to '5.62 lakh crores as on 31.03.2022. The Home loan portfolio accounted
for 23.87% of whole Bank advances. Your Bank has disb rsed close to '1.46 lakh crore of
Home loans and Home related loans during FY 2022.
Market Share: Your Bank have been continuously outpacing the growth
curve and garnered market share of 35.3% in home loans among ASCBs.
Affordable and PSL: Your Bank's affordable housing portfolio stands at
58.19% of its total home loan portfolio, while PSL stood at 34.15%.
Central Nodal Agency (CNA) for PMAY subsidy: Your Bank has been
nominated as CNA by Ministry of Housing and Urban Authority(MOHUA), the only commercial
bank in the country (other CNAs are HUDCO & NHB). As CNA for PMAY-CLSS scheme, your
Bank has processed over 64,272 subsidy claims aggregating to '1,500 crore, earning income
of '17.10 crore during FY 2022.
Asset Quality: Maintaining healthy Asset Quality was a challenge amid
Covid-19 pandemic of the economy. Your Bank's constant proactive monitoring and follow up,
soft reach out calls to customers resulted in NPA in HL falling below Mar'21 level to
0.50% by end of March 2022.
Based on RBI's Covid Relief forbearance/ dispensation of moratorium
& restructuring of retail loans, your Bank provided relief by way of restructuring
74,003 home loan accounts in the 2nd Phase.
Initiatives: Your Bank has always been instrumental in customizing and
developing sustainable, creative solutions and continuously striving towards making SBI
the ‘No. 1 Choice of Customers? for home loans. Towards sustainable development
goals, financing of cost of rooftop Solar Photo Voltaic System as part of project cost is
now included in Home Loans.
Digitisation of Loan Journey: Retail Loan Management Solution (RLMS)
and Vendor Verification Module (VVM) were introduced in loan processing to ensure uniform
underwriting standards, seamless delivery & end to end digitisation of the product to
ensure customer delight.
In-house developed contactless digital platforms like YONO & Online
Customer Acquisition Solution (OCAS) / Retail Assets
Acquisition Solution (RAAS) are being promoted extensively as resource
tools to maximise Home Loan business and boost Bank's market share further.
Document Management Solution (DMS) is an initiative to digitise and
centralise the maintenance of Home Loan documents, to increase customer convenience which
is rolled out in all CPCs.
Tie-Ups with Builders: Onboarding maximum projects under Builder Tie Up
(BTU) provides much-needed leg-up fillip to Home Loan portfolio and improves sourcing
quality besides considerably improving TAT. Your Bank has so far approved 8,578
residential projects (RERA approved) with penetration of 22.47% in these Tied Up projects.
2. Auto Loans
Your Bank took various initiatives to maintain volumes and market
share, focusing on customer delight and convenience. Your Bank has entered into tie-up
with India's two largest OEMs, MSIL & HMIL, by which an eligible customer can generate
an instant in-principle sanction letter while booking the Car on the OEM platform. Your
Bank was No. 1 on both platforms among all financiers. A new Car Loan journey on YONO was
started for customers not maintaining an account with SBI. 13% of total disbursements are
from a pre-approved suite. With a focus on sustainability and supporting the environment,
your Bank has been offering loans for Electric PVs at a concessionary interest rate and
with an extended loan tenor. In two-wheeler financing, your Bank has developed an e2e
digital product, "SBI-Easyride" where the customer does not need to visit branch
for the sanction of loan and disbursement.
3. Education Loans
Your Bank takes pride in being the largest Education Loan provider in
the country. Your Bank has helped 76,301 deserving students realize their dreams by
providing financial assistance of '10,291 crore during the year. 40% of the loans were
extended to girl students (up from 37% in March 2021). To broaden the scope of Education
Loans, book quality business and enhance customer satisfaction, your Bank has taken the
following steps:
• Shortlisted 235 top-rated premier and reputed institutions for
extending Education Loans under the Scholar Loan scheme at relaxed norms and concessional
interest rates.
• Penetration through Flagship product "Global Ed-vantage
Education Loans" for studies abroad was improved by extending Doorstep services in
select cities.
• To ensure better tracking of loan applications and faster loan
sanctioning, your Bank's Loan Origination System (LOS) was integrated with GOIs Vidya
Lakshmi Portal (VLP).
4. Personal Loans
Personal Loans are amongst the most popular products in your Bank, and
your Bank is a leader in this market segment. Your Bank is aggressively catering to the
needs of the salaried class (both government and private), pensioners and
self-employed/other customers. Your Bank is also extending loans to Salaried customers of
other Banks through SBI Quick Personal Loans. As of 31.03.2022, the Personal Loan
portfolio (Xpress credit and Pension loan) reached '2,85,448 crores with a YTD growth of
28.06% ('62,119 crores). The growth is contributed primarily by the flagship product
Xpress credit ('54,934 crores), which had YTD 28.49% growth.
Your Bank launched a new unsecured Personal Loan product, "SBI
KAVACH LOAN", in June 2021 for customers requiring funds for Covid treatment wherein
we offered loans up to '5 lakhs at concessional rate of interest. We extended 1,80,056
loans amounting to '3,686 crores under these product.
5. Consumer Durable Loans for e-Commerce Purchases:
Your Bank offers two e2e products, namely POS EMI Loan and Online EMI
Loan. While POS EMI loan is being provided through Pine Labs POS machines at various
shops, malls, stores, and showrooms, your Bank has entered into a tie-up with Bill Desk
and PayU to offer Online EMI Loan at select online shopping portals. These products are
available to 1.11 crores pre-approved customers based on their account behaviour and other
AI/ML technology parameters.
6. Liability and Investment Products
The total deposits at your Bank grew by 10.06% during FY2022.
The total Term Deposits grew by '2,21,926 Crores (11.53%) during
FY2022.
The total Savings Bank Deposit grew by '1,43,123 Crores (10.45%) during
FY2022.
CASA Deposits of your Bank grew by 7.78% during FY2022. Your Bank
opened 98.75 lakhs new regular Savings Bank accounts during the Financial Year.
7. Doorstep Banking Services
In a move towards customer convenience and ease of banking, your Bank
is extending Doorstep Banking Services through agents to all customers at the top 100
banking centers for 5 key services including cash deposits & withdrawal, pick up
cheques, Statement of Account, TD Advice. Additional two new services for pick up of
Nomination Form and Fund Transfer request were added during the current FY.
However, Senior Citizens more than 70 years of age and Differently
Abled Persons are being extended Doorstep Banking Services at all banking centres.
Registration for Doorstep Banking Services is also made available through the YONO Lite
app.
8. Video Customer Identification Process (V-CIP)
To bring the banking facility closer to customers, your Bank offers the
opening of Savings Bank accounts digitally through the V-CIP process from the comfort of
the home, office & convenience and more than 6 lakhs customers have joined us through
V-CIP up to March 2022.
9. Corporate and Institutional Tie-ups for Salary Package
This year, your Bank focused on opening Salary Package Accounts for
Corporate, Defence, Railways and State Govt employees through Corporate Salary
Relationship Managers. The total Salary Account customer base as of Mar'22 reached more
than 179 lakhs with the opening of 4.77 lakhs new Salary Package Accounts during FY2022.
1,291 new Corporate tie-ups were established during the current FY. 292 dedicated and
customized Salary Package Microsites have been created for employees of various entities
to create awareness about benefits availabe to them under CSP.
10. Digital Personal Loan Offerings
While offering products on multiple platforms for portfolio growth with
higher profit margins, your Bank has kept in mind customer convenience with Ease of
Banking and delivered the following variants through YONO. Customers can avail of the
offerings on a 24X7 basis, without any physical documentation and branch visit.
• PAPL (Pre-Approved Personal Loan)
• PAXC (Pre-Approved Xpress Credit)
• PAPNL (Pre-Approved Pension Loan)
• INSTA Top-up for Xpress Credit
• Insta Pension Loan
The Bank has sanctioned 11.40 lakh digital loans involving '21,118
crores during FY2022 compared to 11.60 lakh digital loans involving '15,997 crores during
FY2021.
11. NRI Business
As of 31 March 2022, your Bank has around 36 lakh NRI Customers, who
are being catered through 450 dedicated Specialized NRI Branches / NRI Intensive Branches
in India, our foreign offices in 30 countries, 227 Global Banks as Correspondent Banks and
tie-ups with 45 Exchange Houses and five Banks (in the Middle East) to facilitate
remittances. To provide a one-stop service to NRI Customers‘ a Global NRI Centre
(GNC)' has been set up at Ernakulam for all nonfinancial services of the Bank.
Your Bank is leading in the NRI Banking space in India with a market
share of 22.38% (as of Jan 2022).
Your Bank has launched the following services in FY 2021-22 for the
benefit of NRI clientele:
• The Daily limit for Forex Outward remittances through FX-Out
(INB Channel) from NRE Account is enhanced from '10 lacs to '18 lacs per day.
• IMPS facility extended for NRI Customers for instant financial
transactions in Internet Banking and Mobile Banking.
• Interest Certificate available to NRI Customers over INB for the
previous two years (both financial and calendar years).
12. Precious Metals
Sovereign Gold Bonds (SGB): The Government of India introduced a
sovereign Gold Bond Scheme during FY 2015-16 to promote Digital Gold. Your Bank, during FY
2021-22, mobilized 3,052 Kg Gold ('1452 Crores) under the scheme.
Gold Monetization Scheme (GMS):
To mobilize gold lying idle in households and institutions, the
Government of India introduced Gold Monetization Scheme during FY 2015-16. During FY
2021-22, your Bank mobilized 2,901 Kg Gold.
Other Gold Business
Metal Gold Loan (MGL): In addition to mobilizing Gold under GMS, Bank
offers Metal Gold Loan to jewellers engaged in manufacturing gold ornaments for domestic
and export purposes. During FY 2021-22, your Bank extended Metal Gold Loans of 15.94 MT
amounting '7,461 crore.
Sale of Gold (SOG): The Bank also offers the Sale of Gold (SOG) Scheme
to Jewellers/Traders. During FY 2021-22, your Bank sold 2.7 MT Gold under the Scheme.
13. Wealth Management Business
The Bank's Wealth Management Services are offered at 74 major centres
across the country through a network of 172 Wealth Hubs and five e-Wealth Centres.
SBI Wealth has shown exponential growth in terms of Investment AUM and
clients during FY2022. The Investment AUM has increased from '8,592 Crore to '14,317
crore, and the number of Clients increased from 2,55,196 to 2,97,246. The AUM of Clients
also increased from '2,07,167 Crore to '2,52,061 Crore for the same period.
SBI Wealth has been chosen as one of the Best Brands of 2021 by The
Economic Times.
B. ANYTIME CHANNELS
1. ATMs and ADWMs
Your Bank has one of the largest ATM networks in the country, with
65,030 ATMs, including Automated Deposit and Withdrawal Machines (ADWMs), as of 31st
March 2022. Your Bank has its ATM
SBI also has set up (Mobile ATMs), which help extend customer service
during emergencies and calamities like floods, cyclones, lockdowns, among others. These
mobile ATMs are also sent to various sites like Army Base, Housing societies, Govt. Office
locations, IT-Tech Parks among others.
Bank's market share in the number of installed ATMs and ADWMs is 29.8%
and handles the highest share of cash (34%). On average, ~1.32+ crore transactions are
recorded every day at your Bank's ATMs and ADWMs.
Your Bank adopts cutting-edge technologies and regularly upgrades and
replaces the ATMs for Safe & Secure Banking.
To strengthen the security of ATM cash withdrawals against skimming,
cloning, and theft of cards by fraudsters, your Bank has implemented 24x7 OTP verification
feature for all cash withdrawal transactions of '10,000 and above, apart from processing
each transaction through the more secure EMV Chip of the card.
presence throughout the country, even in the most challenging
locations. These include a floating ATM at the Dal Lake, Srinagar; on the jetties of
Ernakulam and Vypeen in Kerala; in the Tea Gardens of Assam; and on the islands of Andaman
& Nicobar, and Lakshadweep among others.
SWAYAM Barcode based passbook printing kiosks: Your Bank has installed
19,500 SWAYAMs (Barcode based passbook printing kiosks).
Green Channel Counter (GCC): Your Bank has deployed GCC terminals at
retail branches for transactions through Debit cards to promote Green Banking.
Transactions facilitated are- cash withdrawal, cash deposit, funds transfer within SBI
accounts, Balance Enquiry, Green PIN generations and PIN Change and Mini Statement.
Transactions are enabled only on EMV compliant GCC Terminals.
Green Remit Card (GRC): The GRC is a cash deposit card through which
funds can be deposited to a pre-defined account of your Bank by GCCs, CDMs and ADWMs. Cash
deposit facilities through GRC are available 24*7 at CDMs and ADWMs and are helpful,
especially for migrant workers. The transaction limit for GRC is '25,000 per transaction
with a monthly cap of '1,00,000.
Cheque Deposit Kiosk (CDK) and Smart CDK: The CTS enabled selfservice
Cheque Deposit Kiosks (CDK) facilitate customers to deposit their CTS cheques hassle-free.
The kiosks have been deployed at 2,500 branches where outward clearing cheques are more
than 50 per day. A receipt with a scanned copy of cheques and details such as cheque
number and payee account number is generated for the depositor. Smart CDK functionality in
YONO applications facilitates customers to deposit cheques in bulk (10 cheques at a time)
from the convenience of their location and deposit cheques in CDK through reference
number.
2. Positive Pay System
As per RBI directives, your Bank has implemented the Positive Pay
System (PPS) for all cheque payments (Cash/ Transfer/Clearing) effective from 1st January
2021. This is a measure to prevent frauds perpetrated through cheque tampering/alteration.
Positive Pay System involves re-confirming critical details of the cheque by drawer to the
Bank, which would be cross-checked with the presented cheque at the time of payment
processing. Registration for availing PPS can be done through any of the Bank's Branches
or alternate channels, viz. RINB, CINB, Mobile Banking (Yono Lite), YONO (Mobile App) and
providing details of cheque on issuance can be done through the same channels and SBI
Quick (SMS) additionally. As of 31st March 2022, more than 49 lakhs of your
Bank's customers have opted for Positive Pay System.
3. Setting up of Cyber Cell
To combat Cybercrimes, the Ministry of Home Affairs has rolled out a
cybercrime reporting Portal with a dedicated email and a helpline number 1930 to report
cybercrime incidents by the Victims. To support this new initiative of the Government of
India, Cyber Crime Cells have been set up at all 17 Circles, for attending to customer
complaints in respect of cyber frauds. As of 31st March 2022, 89,871 complaints
have been attended, and '9.40 crore are placed under ‘hold' or ‘saved'.
4. Customer Value Enhancement
Your Bank is a Corporate Agent of SBI Life Insurance Co. Limited and
SBI General Insurance Co. Limited. It has a Distribution Agreement with SBI Mutual Fund,
SBI Cards & Payment Services Limited and SBI Cap Securities Limited to distribute
their products. Your Bank also distributes mutual fund products of UTI Mutual Fund, Tata
Mutual Fund, Franklin Templeton Mutual Fund, L&T Mutual Fund, ICICI Mutual Fund and
HDFC Mutual Fund. In addition, all branches are authorized to open NPS accounts under
National Pension Scheme.
Initiatives and successes for FY2022 are mentioned below:
SBI General
The current year has witnessed significant migration of transactions
over digital channel. During the year approx. 51 lakh PAI policies were mobilized through
YONO. Health Insurance contributes 20% of the total premium mobilized.
SBI Cards & Payment Services Limited
Your Bank is leveraging technology for customer segmentation, which has
resulted in the sourcing of approximately 16.54 lakh cards through SBI branches in FY2022.
Card issuance through digital journey has been received very well by customers and is on a
rising trend.
SBI Pension Funds Pvt. Ltd.
Your Bank has upgraded its systems to provide end-to-end digitization
for instant NPS account opening. Your Bank mobilized over 1.75 lac NPS accounts during FY
22 with a market share of 22%.
SBICAP Securities Limited (SSL)
Bank has sourced over 7 lakh Demat and Trading accounts, contributing
more than 85% business mobilization of SSL. An e2e Demat and Trading account journey has
been launched on YONO.
5. Internet Banking and E-Commerce
YONO is a flagship mobile banking and lifestyle app and one-stop-shop
offering, not just financial services but also a gamut of investment, insurance, and
shopping solutions. With a Digital-First approach, it is part of Bank's continuous
endeavour to provide innovative digital banking solutions to all customers across the
country.
YONO has crossed many milestones with 111.74 million downloads and
48.35+ million registrations, till 31.03.2022, with increasing momentum in adoption and
progressively higher user engagement.
Key Performance Highlights of YONO for FY2022:
SIM Binding feature was implemented on YONO App on 22.08.2021 to
enhance the security features. This feature will ensure that the App will function only on
the device where the SIM of the Bank's Registered Mobile number is present.
Customer Onboarding: Significant momentum was observed in new customer
onboarding, with ~96% of eligible savings accounts being opened through the YONO platform.
NPS account opening through YONO mobile app has been launched on 27th
Sept 2021. It is a complete end-to-end process wherein the customer is not required
to submit the physical form to CRA (Central Recordkeeping Agency). PRAN is generated
instantly. 49,051 accounts have been opened, during the year which represents 29.60% of
accounts opened at the Whole Bank level.
YONO Krishi: YONO Krishi, a comprehensive multi-lingual platform for
agriculture segment customers, launched in 2019, is an initiative by the Bank to make our
farmer customers future-ready by offering them constant digital innovations pertaining to
their agricultural needs. By the end of FY2022, more than 24 lakhs YONO Agri Gold Loans
amounting to ~Rs.37,500 crore were sanctioned through YONO Krishi.
Simplified KCC Review through the YONO process was launched in August
2020, wherein the customer can get their KCC account reviewed online without visiting the
branch in a paperless, presence less manner.
SAFAL (Simple and Fast Agriculture Loan) - A Pre-approved loan, first
of its kind in the Agriculture segment, was launched in September 2021. The product is
available for farmers engaged in Dairy activity and associated with Corporates under Tie
up through an arrangement with Bank. Farmers can avail of loans up to Rs.3.00 Lakh without
collateral security through this simplified, digitized process with minimal documentation.
316 SAFAL loan accounts amounting to '1.69 crore, and 34 Corporates have been onboarded by
the end of FY2022.
Online marketplace: In FY2022, 111 merchant partners were live on the
B2C Market Place platform (including Mitra and Mandi), witnessing 6 lakh+ transactions
amounting to ~'1,255 crore + worth of Gross Merchandise Value during the FY2022. This
platform generated more than 20,000 auto loan leads for your Bank.
2. SMALL AND MEDIUM ENTERPRISES
Your Bank is a pioneer and market leader in SME financing with 829 SME
intensive & dedicated branches across India. With over 18 lakh customers, the SME
portfolio of Rs.3,05,517 crore, as of 31st March 2022, accounts for nearly
10.83% of your Bank's total advances. Your Bank has always held SMEs as an important
segment, considering their role in the Indian economy and for their contribution to the
country's manufacturing output, exports, and employment generation. Being committed to
providing innovative and straightforward financial solutions, your Bank's approach to
drive SME growth rests on the following three pillars:
a) Customer Convenience,
b) Risk Mitigation, and
c) Technology-based digital offerings and process improvements.
1. Customer Convenience
To build and sustain the momentum for transforming India, the Bank has
created the highest number of touchpoints in branches and other channels. To enhance the
ease of business for the Small and Medium Enterprises, your Bank has modified its existing
delivery model of the Small and Medium Enterprises Centre (SMEC) and created Asset
Management Teams (AMTs) to maintain end-to-end relationships with the customers for loans
up to Rs.50 lakh. Loans above Rs.50.00 lakhs are handled by the Relationship Manager (SME)
for better customer connect. As of 31st March 2022, 1,810 RMs (SME) were active
across India.
To focus on improving our connection with customers and strengthening
our SME business, 104 Assistant General Managers (SME) have been posted across all zonal
offices.
2. Digital Offerings
Your Bank is leveraging technology in every aspect of the value
proposition from business, designing products, streamlining processes improving delivery
to monitoring. Furthermore, it has taken several initiatives to build an SME portfolio
that is risk mitigated. It has implemented significant changes in
(i) Product suite,
(ii) Process
(iii) Delivery to ensure Ease of Banking.
Loan Life-Cycle Management, Online Loan Application and Online Lead
Status:
Your Bank hosts an online loan application and tracking facility for
MSME borrowers on the corporate website. Loan Organisation Software (LOS-SME) and Loan
Lifecycle Management (LLMS) adopt uniform credit dispensation standards to ensure quality
and preserve corporate memory.
Customer Relationship Management (CRM):
Your Bank has introduced a CRM system as an integrated platform to
engage with customers throughout their lifecycle, enhance understanding of customers'
requirements and strengthen the customercentric approach of the Bank. The CRM portal has
been designed to generate leads in CRM applications through various channels, better
monitoring mechanism of leads at multiple stages, and booking increased business with
lower TAT through customer connect. The Customer 360 view is also available in CRM, apart
from lead monitoring.
Contactless Lending Platform (CLP):
State Bank of India in collaboration with SIDBI and other PSBs has
developed a Contactless Lending Platform (psbloansin59minutes. com) for loans to MSME. CLP
provides easy access for loans to SMEs registered on the GST platform and filing Income
Tax returns. Using the platform, your Bank is sourcing leads for loan requirements from
'1.00 lakh to '500.00 lakh. In FY2022, 7,661 MSME loans have been sanctioned, amounting to
'2,526.90 crore.
Project Vivek
Project Vivek heralded a paradigm shift in your Bank's appraisal system
from traditional Balance Sheet based funding to a more objective appraisal system of
leveraging cash flow and other information sources bringing objectivity to better risk
assesment. It reduces Turn Around Time (TAT), resulting in a better customer experience.
In FY2022, 35,589 proposals were processed under Project Vivek. Further, technical
enhancements were done to the project during the year to improve the underwriting process.
The simplified Automated Quick Renewal process under Project Vivek is being popularised to
simplify the process of renewal of Fund Based Working Limit.
SME Gold Loan
Your Bank has introduced a simplified product, viz., SME Gold Loan, to
provide short term credit support to MSME Units against the security of Gold Ornaments/
jewellery with simplified assessment and easy sanction. MSME units bridge their liquidity
gaps with ease.
Pre-Approved Business Loan (PABL)
Your Bank has launched a simplified PABL product - An analytics product
for sanctioning loans up to '10 lakhs for current account customers. Your Bank also
launched the Digital Retailer Finance programme. A total of 1,800 retail traders supported
a pilot run.
SME Finance For CAs under CLP
This is simplified, scoring based product available on the Contactless
Lending Platform (CLP). Under the product, collateral free loans are offered to CAs and
covered under CGTMSE with EBLR linked pricing.
COVID-19 Enablers
In line with the RBI's regulatory package, sanctions are given under
GECL to ensure prompt disposal and release of funds. GECL scheme will continue till 31st
March 2023.
Your Bank is also participating in the Sanjeevani scheme for SME loans
for the healthcare sector for existing hospitals, nursing homes, clinics and medical
colleges.
Your Bank also participates in disbursing Aarogyam Healthcare Business
Loans, which covers the entire healthcare ecosystem under the product. The stakeholders
included are hospitals, nursing homes, diagnostic centres, pathology labs, manufacturers,
suppliers, importers, and logistic firms engaged in critical healthcare supply.
Competitive Rates of Interest
Your Bank has linked all floating rate loans to Micro, Small and Medium
Enterprises (MSMEs) to External Benchmark w.e.f. 1st October 2019.
Trade Receivables Discounting System (TReDS)
The Bank was the first among all PSBs to register as a financier on the
TReDS platform, set up to provide finance to MSMEs. We have presence on all the three
TReDS platforms in the country, i.e. RXIL, M1 exchange and Invoicemart. Your Bank has been
actively participating in the online biddings on the platform and has been offering very
competitive rates for the benefit of MSMEs. In FY2022, 14,208 Bills aggregating '2,668
crore were discounted.
Supply Chain Finance
Leveraging Bank's state-of-the-art technologies and vast branch
network, your Bank continues to be a significant player in Supply Chain finance by
strengthening its relationship with the corporate world across various sectors. Your Bank
has extended supply chain finance to over 31,000 dealers and over 12,260 vendors with
total sanctioned limits of over '38,680 crore (e-DFS) & '5,825 crore (e-VFS).
Thirty-seven new tie-ups were established during the financial year, including CG Power
& Industrial Solutions Limited, Skoda, Honda India Power Limited, Bajaj Auto Limited,
Nestle India Limited, Ambuja Cement Limited, Trident Limited, and Tata Consumer Products
Limited, among others. New e-DFS limits of '5643 crore were sanctioned in this financial
year up to 31st March 2022. To ring-fence the supply chain portfolio, your Bank
has put suitable risk mitigation measures and risk-based pricing for the Supply Chain
Portfolio. Being the country's largest lender, your Bank has also undertaken a leadership
role in implementing proactive measures to support the dealers availing of the e-DFS
facility during the covid pandemic related business slowdown. Your Bank has simplified
e-VFS processes and built a front-end digital interface for a vendor to enhance customer
experience.
3. Business Partnerships and Tie-ups
Warehouse Receipt Finance: Your Bank has introduced a Warehouse Receipt
Financing scheme (WHR) for financing against Warehouse Receipts issued by collateral
managers having a tie-up with the Bank. Under the scheme finance is extended to traders/
owners of goods/ manufacturers etc. Further, WHR issued by Central Warehousing Corporation
(CWC) and State Warehousing Corporation (SWC) would also be eligible for WHR finance. SBI
has also tied up with repositories NERL & CCRL for financing against e-NWR and NEML (a
subsidiary of NCDEX) for the e-auctioning of NPA/stressed accounts under WHR Financing
scheme.
3. Rural Banking - Agri Business
Your Bank's lending under Agriculture & Allied activities has
crossed the milestone of '2,27,000 crore during this financial year, catering to more than
1.42 crore farmers. During the year, the Agriculture Gold loan portfolio has increased to
'73,601 crore in FY2022 from '66,878 crore in FY2021.
Under Atmanirbhar Bharat schemes viz. Agri Infrastructure Fund (AIF),
Animal Husbandry Infrastructure Development Fund (AHIDF) and PM Formalization of Micro
Food Processing Enterprises (PM FME), your Bank has disbursed loans to 1,400 borrowers
amounting to '806 crore.
Credit disbursements to the farmers over the years are as follows:
Flow of Credit to Agriculture
(Rs. in crore)
| Year |
Target |
Disbursement |
% Achievement |
| FY2019 |
1,16,315 |
1,56,385 |
134 |
| FY2020 |
1,27,947 |
1,77,473 |
139 |
| FY2021 |
1,74,468 |
1,98,268 |
114 |
| FY2022 |
1,92,500 |
2,19,396 |
114 |
1. Micro Credit:
Your Bank has won the National Award for the Highest SHG bank linkages
consecutively for 2017-18, 2018-19, 201920 and 2020-21 instituted by the Ministry of Rural
Development, New Delhi.
Your Bank has the second-highest market share in SHG loans outstanding
among all banks, with outstanding loans of '24,023 crore to 8.71 lakh SHGs as of
31.03.2022. covering more than 85 lakh women members. SBI's market
share of loans under the National Rural Livelihood Mission is the second-highest among
PSBs, which is 25.80% as of 31.03.2022.
Since the inception of Deendayal Antyoday Yojana (DAY-NRLM), your Bank
has financed 29,35,453 SHGs under Bank- SHG Linkage and disbursed '66,821 crore up to
31.03.2022.
Your Bank has disbursed '882 crore under the e-Mudra scheme for
Microfinancing enterprises up to '50,000 since inception. In the Current Financial year,
1,24,763 loans have been sanctioned, and '562 crore have been disbursed up to 31.03.2022.
Your Bank has launched "PM SVANidhi Loans" with effect from
02.07.2020 to support the livelihoods of street vendors during the Covid-19 pandemic. In
FY 2021-22, we have disbursed 3,48,041 loans, amounting to '406 crore to Street Vendors
under both tranche I & II, as of 31.03.2022.
2. Digital step, collaborations:
Currently, your Bank has an Agri Gold loan and KCC review on YONO
Krishi digital platform. Your Bank has launched YONO Krishi SAFAL Dairy during the year,
an end-to-end digital product for financing dairy farmers. Your Bank has also embarked
upon digitising all the journeys in Agriculture.
To address high volume and low- value ticket loans in Agri-Business
with a digital optimisation strategy, your Bank is onboarding AgriTech-BCs with
differentiated Business Models. These AgriTechs will help source, service, and collect
Agri and Microcredit products.
To enhance our reach to the unserved & underserved populace, we
have signed MoUs with seven NBFC MFIs under the Co-lending model.
Your Bank has executed agreements with 19 National Business
Correspondences (BCs) and 42 State Level BCs to collect repayments in Standard overdue
accounts. 57,145 Customer Service Points (CSPs) have been mapped with 14,657 branches for
collection on 31.03.2022.
3. Financial Inclusion (FI)
Your Bank has aligned its business goal with national priorities, and
focused attention is given to a range of financial inclusion activities. SBI has made
impressive strides toward financial inclusion through a vast network of Business
Correspondents (BCs) and Customer Service Points (CSPs). As of 31st March 2022,
your Bank has 68,016 CSPs providing access to around 26 banking products and services in
unbanked areas while reducing footfalls in the branches. The BC/CSP channel has recorded
~54.44 crore transactions amounting to Rs.2,87,857 crore during FY2022.
The BC/CSP channel is increasingly becoming one of the most crucial
drivers of financial inclusion initiatives of the Bank. The channel has opened 14.20 crore
BSBD accounts with Rs.42,450 crore deposits and has brought the unbanked/ under-privileged
section of the society under the ambit of the formal Banking system. To fulfil the needs
of social security measures, low-cost microinsurance products (PMJJBY, PMSBY) and pension
schemes (APY) are provided to the unorganised sector in a significant way, covering around
10 crore customers.
4. Imparting Financial Literacy (FLCs)
Your Bank has set up 341 FLCs across the country to impart free
financial literacy, credit counselling, and the propagation of electronic payment systems.
Furthermore, as a part of the RBI initiative to propagate awareness of financial products
among the rural masses, your Bank has also set up 189 Centre for Financial Literacy (CFLs)
at the block level, which will be scaled up to 235 in the near future.
5. Rural Self Employment Training Institutes (RSETIs)
Your Bank has set up 152 RSETIs spread across 26 States and 3 Union
Territories. RSETIs act as social change agents, empowering rural youth towards
sustainable livelihood through skill development and training, helping them establish
their micro-enterprises, thereby creating rural employment and wealth creation. During the
ongoing pandemic, the Bank's customer service points across the country served under
challenging terrains/conditions to meet the financial requirements of the people in need.
4. Government Business
Your Bank is at the forefront in conducting Government Business and is
an accredited banker to major Central Government Ministries and Departments. SBI is the
market leader in Government Business, with a market share of over 63% in Central
Government Turnover.
| Particulars (Rs. in crore) |
FY2021 |
FY2022 |
| Government Turnover |
50,77,446 |
55,18,281 |
| Commission |
3,618 |
3,713 |
It is a matter of pride that SBI is one of the significant bankers to
the Government of India. Your Bank is continuously engaged in developing customized
technology solutions to keep pace with the Government's digital initiatives facilitating
the transition to the online mode, providing greater efficiency and transparency,
resulting in ease of doing business and ease of living for the citizens. SBI is actively
engaged in implementing Social Security Schemes of the Government of India, namely PM
Kisan Samman Nidhi Yojana, Pradhan Mantri Kisan Maandhan Yojna, and PM Garib Kalyan Yojna
for PMJDY Women Beneficiaries. The key initiatives for FY2022 include:
PM Kisan Samman Nidhi Yojana: As an accredited Bank to the Ministry of
Agriculture & Farmers Welfare, your Bank facilitated the distribution of Rs.62,439
crore under the scheme.
Direct Benefit Transfer (DBT): All the major schemes of Direct Benefit
Transfer (DBT) of GOI and State Governments are being implemented through your Bank on a
pan India level. State Bank of India is the sole banker for processing the Direct Benefit
Transfer of LPG subsidy (DBTL).
Ministry of Rural Development: Your Bank has successfully onboarded
Haryana, Assam & Rajasthan State Governments on e-Tendering Solution for collecting
EMD by NRIDA (National Rural Infrastructure Development Agency). The onboarding process
for Pradhan Mantri Gram Sadak Yojna is in process. All the remaining State Governments are
scheduled to be onboarded in a phased manner.
Ministry of Defence (MoD): Ministry of Defence has launched a SPARSH
portal for centralized processing pension of Defence pensioners. Your Bank has entered
into an agreement with MoD for providing various services to defence pensioners on the
SPARSH portal through our 446 (defence pensioner intensive) branches.
Armed Forces Battle Casualties Welfare Fund (Maa Bharti ke Sapoot):
Ministry of Defence has planned to launch ‘Maa Bharti Ke Sapoot' to raise funds for
Defence Personnel. Your Bank has opened an account in the name of "Armed Forces
Battle Casualties Welfare Fund" to receive online donations from the citizens through
SBI Payment Gateway.
Ministry of Railways: The Ministry of Railways developed an exclusive
Portal for e-Freight. SBI has integrated SB MOPS with their Portal. For collecting
receipts, the Ministry of Railways has developed e-Receipts Systems (MERS). SBI has
integrated with MERS through SB MOPS to collect the funds and has provided a seamless
system for the settlement of funds.
Department of Posts: MoU has been executed for the Centralized
Integrated Payment System (CIPS) to take care of entire Postal Payments.
Centrally Sponsored Schemes (CSS) under Single Nodal Account mechanism:
Govt. of India has issued directions for implementing the Single Nodal
account (SNA) mechanism (subsidiary accounts of implementing agencies (IA) with allocated
limits) for monitoring the utilization of funds released under Centrally Sponsored Schemes
(CSS). Your Bank has onboarded TCS to develop a new application for CSS under the SNA
mechanism as per GOI guidelines.
Pension Payments: Your Bank has been administering pension payments to
52.96 lakh pensioners. New pension accounts of 3.40 lakh pensioners have been added in
FY2022. Your Bank has launched a Video Life Certificate facility for pensioners which
allows pensioners to submit their Life Certificates through video.
Small Savings Schemes: Your Bank services more than 85.04 lakh PPF
accounts, 22.74 lakh Sukanya Samriddhi Yojana (SSA) accounts and 11.69 lakh Senior Citizen
Savings Schemes (SCSS) accounts, making it the highest among all the authorized banks.
During FY 2021-22, 4.62 lakh PPF accounts, 2.43 lakh SSA accounts and 1.40 lakh SCSS were
added.
Online extension of PPF accounts: This feature has been rolled out to
customers to renew their PPF accounts online. The facility has been rolled out for sending
an SMS alert to the PPF customers reminding them of the account renewal if they wish to
extend.
5. Digital & Transaction
Banking (D&TB) - Marketing
D&TB Marketing, erstwhile known as the Transaction Banking Unit
(TBU), leverages the latest technology to provide clients with comprehensive
transaction-related products and solutions. The objectives of TB business in your Bank are
to adopt new technology initiatives catering to clients' bulk transaction requirements and
other value additions like customised MIS, integration with ERP, and a dedicated single
point Client Support Cell, among others. Study and analysis of transaction patterns enable
your Bank to develop non-traditional techniques for assessing other Banking requirements
like Credit, Fund Management, Cross-Selling and other services for clients.
Technology advancements are continuously implemented towards backend
processes and robust customer service delivery channels. The key to customer satisfaction
is delivery, and to deliver the finest services to our clients, your Bank has added new
solutions like VAN based Cash & Cheque Collections, Digi Voucher & NACH off-us.
Your Bank has a multi-channel delivery model, which allows it to offer
its clients a choice to carry out transactions through any channel, at any time and any
place. Your Bank offers a wide range of TB products to Corporates, MidCorporates,
Government Departments, Financial Institutions, NBFCs, Insurance Companies, Banks, Mutual
Funds and SME Clients to facilitate their fund management requirements.
The Corporate customers are serviced by a dedicated team comprising of
several sub-teams focused on specific areas to facilitate specialisation and tailored
product offerings to clients. Your Bank was recognised as "Best Cash Management and
Transaction Bank in India" by Asian Banker Magazine, Singapore, under Transaction
Finance Awards 2021.
Current Account (CA) balances contribute directly to the profitability
of your Bank by reducing the Cost of Deposits (COD) and improving Net Interest Margin
(NIM). CA remains a critical component of the CASA deposits. SBI has a bouquet of CA
products which are competitive in the market and meet the requirements of different
customer segments. Your Bank has taken various initiatives to improve the CA business, and
they include:
People:
• Training on YONO Products, CKYC & Online Current Account
opening held for RMCAs (Relationship Manager Current Accounts).
• High-value Current Accounts (CAs) mapped to RMCAs.
• SSL executives being provided for Feet on Street (FOS) support.
• Updation of the KRAs in line with the revised role.
• Two days of training for soft/ hard skills at SBICB Hyderabad
for RMCAs, including 4-days training for navratna centre RMCAs.
Process:
• Revised AOFs, which are more User- friendly.
• Online CA Opening facility.
• CKYC for Digital transmission of AOF & KYC documents. It
will help in improving TAT in the CA opening. SOP, Trainings, SMS, emails for the same.
• Functionality for Back-end conversion of CAs to CCOD for
compliance with RBI guidelines.
• CIC Report (for compliance with RBI guidelines) made available
for operating functionaries.
Products:
• Integration of MCA SPICe Form for CA opening (Under
development).
• Shubharambh Start-up Current Account for Start-up entities.
Technology:
• Enhanced CA visibility on SBI Corporate Website.
• Mobiliser Code for mapping of Marketing Executives.
• CA Re-imagined Journey through YONO business to simplify CA
opening process.
As on Mar 2022, Daily Average Balances in Current Accounts have
positive YOY growth of Rs.23,938 crore (12.96%) from '1,84,669 crore (March 2021) to
Rs.2,08,607 crore (March 2022).
SBIePay: SBI is the only bank in India to have its own ‘Payment
Aggregator Services' (SBIePay), which was launched in March 2014. Unlike other banks,
which rely on the services of private aggregators, SBI has an in-house aggregator, which,
when coupled with SBI's own PG services, gives SBI the security and a distinct cost
advantage over other aggregators and banks. Additionally, Government merchants prefer
having their data handled by SBIepay over private aggregators.
Your Bank has on-boarded over 1391 merchants, including Central/State
Govt. Departments, Universities, Charitable trusts, private Merchants/ institutions, among
others. Your Bank is integrated with 40 significant Banks for INB transactions. It uses
SBI PG for Debit and Credit Cards of VISA, Master and Rupay, and Prepaid Card, directly
integrated with Amex and PayPal. It also has Cash & Cheque (Branch Payment), NEFT
& UPI, and UPI QR Code as a payment mode. The link-based payment option has been
rolled out for merchants to accept online payments without needing a Website.
Merchant on-boarding on SBIePay registered a YoY growth of 73.87% by
on- boarding 346 merchants in FY2022 over 199 merchants in FY2021. YoY growth in Fee
Income went up by 70.71% from '26.1 crore in FY2021, to '44.45 crore in FY2022. The
turnover in transaction value registered a Y-o-Y increase of 55.30%, with transactions
amounting to '84,934 crores in FY2022 over '54,690 crores in FY2021.
SBI e-pay plans: Increasing payment options by integrating with Payment
Wallets, Channels.
• On-boarding large Corporates, Private merchants &
Universities with large transaction volumes.
• Integrating with typical Portals/ Technology service providers
for continuous business through a single integration.
• Digital on-boarding of a merchant with the online upload of
merchant KYC and on-boarding agreement.
• Validation of GSTIN & PAN while on- boarding the merchants
digitally
YONO Business
YONO Business is an integrated platform (available on both mobile App
and desktop) designed to serve a whole range of banking needs -Trade Finance, Forex, Cash
Management, Internet Banking and Supply-chain finance - for corporate customers across
categories, from the biggest conglomerates to emerging startups.
Key Performance Highlights of YONO Business (as of 31st
March 2022):
• YONO-B platform adoption: 17.53 lakhs Corporate Users have used
YONO Business by the end of FY2022.
• Customer Onboarding: 1,39,413 New to Digital customers were
onboarded till FY2022 through the YONO Business portal.
• Import LCs: Processed issuance of 23,883 Import LCs amounting to
'1,67,279 crores with 66% being Digital LCs, a jump from 7% in FY2019.
• Forex Rate Booking: Facilitated forex booking of more than
'23,602 crore with 23,618 transactions by the end of FY2022.
• PABL/PABL-POS: 13,372 of PreApproved Business Loans (PABLs)
amounting to '551.92 crores were opened by the end of FY2022.
• YONOB Mobile App Adoption: The registered user base of the YONOB
mobile App is 6.19 lakhs by the end of FY2022. Total downloads since 1st July
2020 (date of launch) are 20.01 lakh.
• Current Account Opening: Facilitated online requests for the
opening of 1,01,248 current accounts by the end of FY2022.
• API Banking: API Sandbox environment has been created where
customers can explore the sandbox and subscribe for UAT and production. Payment APIs
enable posting from the customer's ERP to Bank's CBS via YONO Business. Two types of
Payment APIs are available: STP (direct posting) and non-STP (request initiated from
customer's ERP and approved by corporate checker in YONO Business).
6. Corporate Banking
A. Corporate Accounts Group (CAG)
Corporate Accounts Group (CAG) is a dedicated Business Unit (BU) of
your Bank. It handles SBI's ‘high-value credit' portfolio as a specialised and
efficient delivery platform. The CAG BU has four specialised Branches headed by General
Managers located in India's top three commercial centres, namely Mumbai (2), Delhi (1),
and Chennai (1).
In SBI, CAG BU is a one-stop-shop that provides a wide range of
financial products and services exclusively to toprated corporates, including their
foreign associates and subsidiaries. The business model of CAG BU is based on the
relationship management concept, and each client/business group is mapped to a
relationship manager who spearheads a cross-functional client service team consisting of
highly skilled credit and operations functionaries.
The relationship strategy is anchored on delivering integrated and
comprehensive solutions to the clients, including structured products within a specified
time frame. The prime objective of the plan is to make SBI the first choice of top
corporates. A regular review of each corporate relationship by senior management sets the
benchmark for relationship management in CAG BU.
Apart from various core credit products, CAG BU offers an array of
customer- specific products like Cash Management Product, Treasury and Forex products and
Merchant Banking products in association with other SBUs and subsidiaries of SBI such as
SBI Capital Markets Limited and SBI Gilts Limited, amongst others.
Client Service Teams at CAG Branches also aid customers in the
selection and delivery of a wide variety of products and services offered by SBI's
associates and subsidiaries listed below:
• For Capital Market Requirements - SBI Capital Markets Limited
(SBICAPS)
• For Treasury and Investments - SBI Gilts Ltd and SBICAP
Securities Limited
• For Investments - SBI Mutual Fund Limited
• For General and Life Insurance - SBI General Insurance Company
Limited and SBI Life Insurance Company Limited
• For Receivables factoring - SBI Global Factors Limited
• For Custodial Services Banking to Foreign (FII, FPI, FVCI) &
Domestic Institutional Clients - SBI Societe Generale Global Securities Services Pvt.
Limited (SBI-SG)
To align with the changing banking landscape, your Bank has created two
specialised units within CAG BU:
Corporate Solutions Group (CSG) - looking at 360? banking requirements
of corporate customers in significant sectors, namely FMCG, Auto, Agri, Pharma, and IT, to
cover their entire ecosystem and with a focused thrust on existing as well as new- to-bank
customers.
Financial Institutions Group (FIG) - to address credit, transactional,
general banking and non-banking requirements of Financial Institutions such as Insurance
Companies, Brokerage Firms, Banks (Private and Foreign), Mutual Funds, FDI and FPI
entities.
The total loan portfolio of CAG BU as of 31st March 2022 was
'6.18 lakh crore (fund based - '4.02 lakh crore and nonfund based - '2.16 lakh crore)
compared to a total loan portfolio of '5.42 lakh crore (fund based - '3.61 lakh crore and
nonfund based - '1.81 lakh crore) as on 31st March 2021. Demand for credit has
picked up in the second half of FY2022, resulting in '0.76 lakh crore net credit growth at
the CAG BU. Major top corporates of the country and Navratna PSUs are esteemed customers
of the CAG BU.
B. Treasury Operations
Global Markets performs domestic
Treasury Operations of your Bank and is responsible for deploying
surplus funds to achieve desired risk-adjusted returns. Global Markets' portfolio
comprises investments in SLR (Statutory Liquidity Ratio) and Non-SLR Securities, Publicly
Traded Equities, Venture Capital Funds, Private Equity, and Strategic Investments.
Additionally, it offers multiple products and services that cater to its customers'
foreign exchange and risk management requirements.
Interest Rate Movements & SLR and Non-SLR portfolio
Global Markets manages your Bank's domestic Investment Portfolio and
maintains regulatory requirements of CRR (Cash Reserve Ratio) and SLR (Statutory Liquidity
Ratio). COVID-19 pandemic continued to significantly impact economies and financial
markets worldwide, with geopolitical tensions further exacerbating market sentiment.
One of the primary features of FY 2021-22 has been rising global
inflation, mainly due to higher commodity prices and supply chain and logistics
disruptions. In India, CPI has remained above RBI's target of 4% throughout the year and
has continued to rise steadily above 6% in the last few months, mainly due to upward
pressure on crude, edible oil prices and other commodity prices.
During FY 2022, RBI continued to take various monetary measures to
support economic growth. To facilitate Government's extensive borrowing programme during
the first half of the year, RBI introduced G-Sec Acquisition Program (G-SAP). RBI also
continued unconventional measures viz., Targeted Long-Term Repo Operations (TLTROs) for
Small Finance Banks, Liquidity Facility for All India Financial Institutions (AIFIs),
asymmetric Open Market Operations (OMOs), simultaneous Sale and Purchase of securities,
etc. With ample liquidity in the banking system, the earlier relaxation in CRR
requirements was gradually withdrawn, starting from March 2021. Relaxation to avail funds
under Marginal Standing Facility (MSF) by dipping into the Statutory Liquidity Ratio (SLR)
up to an additional one per cent of Net Demand and Time Liabilities (NDTL), i.e.,
cumulatively up to 3 per cent of NDTL, was also made available till 31st
December 2021. RBI also undertook Variable Rate Reverse Repo operations of different
tenors under the Revised Liquidity Management Framework to manage durable and transient
liquidity.
The fiscal deficit for FY 2022-23 is estimated at 6.40% of GDP as
against 6.90% (revised estimates) in FY 2021-22. The Centre has announced a record gross
borrowing of '14.31 lakh crore as against market expectations of about '12.50 lakh crore
resulting in a sharp rise in bond yields. Following monetary and liquidity tightening by
major Central Banks, along with high inflation numbers, the Indian 10-year benchmark bond
yield closed at 6.84% on 31st March 2022.
Your Bank has prudently managed the excess liquidity position and is
well placed to handle the expected moderation in liquidity. Your Bank has invested in a
mix of high-quality corporate bonds and Government securities while maintaining
low-interest-rate sensitivity in preparation for a rise in yields.
Equity Markets
Global and domestic Central Bank liquidity and swift economic recovery
from the second wave of COVID-19 helped our equity market outperform global indices in the
first half of the financial year. However, equities corrected in the second half of the
year as market participants weighed inflationary pressures, commodity prices, a slowdown
in growth, hawkish FED, and geopolitical tensions. Indian equities posted decent returns
in the current financial year, with the Nifty 50 index recording 18.88% year-on-year gains
and ending the year with the second- best returns in seven years. The domestic benchmark
equity index Nifty 50 traded between a high of 18,604 and a low of 14,151 during the
FY2022.
Your Bank actively participated in the rally in equity markets,
calibrating the investment book as per market dynamics. The year also saw a flurry of
IPOs, including new-age tech companies, with solid listing gains. Your Bank's active
participation in the primary market, including InvITs and REITs, has proven fruitful,
generating high returns. Your Bank manages the equity portfolio by realigning the book
according to market movements while keeping a tab on domestic and global macros towards
achieving substantial risk-adjusted returns.
Private Equity / Venture Capital Fund
Your Bank has been an active participant in the Alternative Investment
space during FY 2021-22 and has supported startups through direct equity participation.
During the year, your Bank sanctioned investments of more than '1,500
crore in Private Equity / Alternative Investment Funds.
Forex Markets
Global Markets handles the foreign exchange business of your Bank,
providing solutions to the customers for managing their currency flows and hedging risks
through options, swaps, and forwards and providing liquidity to markets. Your Bank is a
leading player in USD-Rupee Spot and USD-Rupee Forward markets and has a high market share
in merchant foreign exchange flows. Your Bank is the leader in providing liquidity in the
CCIL Fx Clear platform. The volume traded in Currency Futures puts your Bank in the
bracket of leading client Banks of exchange houses. Your Bank is actively onboarding
customers on the Fx-Retail platform rolled out by CCIL, through which customers will
benefit from transparent and competitive pricing. Your Bank has made FX-All and e-Forex
trading platforms available to customers looking at their requirements.
Last year, RBI allowed Indian Banks to participate in the offshore
USD-Rupee markets, also known as the NDF market or Non-deliverable Derivative Contracts
(NDDCs). Accordingly, your Bank has started participating in the offshore USD-Rupee market
and is a significant player. India's merchandise trade volumes showed robust growth of
49.80% Year- on-Year during FY 2021-22, which has also improved merchant volumes for your
Bank.
Derivatives
Your Bank currently deals in Over The Counter (OTC) interest rate and
currency derivatives, along with exchange-traded currency derivatives and Interest Rate
Futures. The interest rate derivatives traded by your Bank are Rupee Interest Rate Swaps
(OIS), Rupee Interest Rate Futures (IRF), Foreign Currency Interest Rate Swaps (IRS),
Foreign Currency to Rupee Interest Rate Swaps (MIFOR), Forward Rate Agreements (FRA),
Caps, Floors and Collars. Currency derivatives dealt by your Bank are Cross Currency Swaps
(CCS), USD / INR options and Cross Currency Options. These products and their customised
versions are offered to your Bank's customers to hedge their interest rate and foreign
exchange exposures. Your Bank also uses derivatives for trading and balance sheet hedging
purposes.
Your Bank has smoothly completed the transition from LIBOR to
Alternative Reference Rates (ARRs) for all LIBOR settings, phased out from 31st
December 2021. For the last few months, your Bank has been actively spreading awareness
amongst customers about the transition. The Bank has started ARR-based products like
FCNR(B) loans, PCFC / EBR loans from 1st January 2022.
Derivative transactions carry market risk: the probable loss your Bank
may incur due to adverse interest and exchange rate movements. It also carries credit
risk, the probable loss that your Bank may incur if the counter parties fail to meet their
obligations. Your Bank's "Policy for Derivatives" approved by the Board
prescribes market risk parameters (Greek limits, Loss limits, cut-loss triggers, open
position limits, Duration, Modified Duration, PV01, amongst others) as well as customer
eligibility criteria (Credit Rating, sanctioned limits, and CAS rating as per Customer
Appropriateness and Suitability policy) for entering into derivatives transactions. Risk
on inter bank counter parties is monitored through limits set for the purpose. These
counter parties have also executed ISDA with your Bank.
Your Bank has various committees and departments to monitor multiple
types of risks. The Asset Liability Management Committee (ALCO) oversees the efficient
management of liquidity risks. Market Risk Management Department (MRMD) identifies,
measures, and monitors market risks associated with derivative transactions. MRMD also
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.
The accounting policy for derivatives has been drawn up in accordance
with RBI guidelines.
C. International Operations
In its endeavour to become a truly International Bank, the focus of
your Bank has been realigned to enhance its penetration in overseas local markets along
with India based business to support Indian Diaspora and global Indian Corporates spread
across various geographies. A separate Business Unit manages the Overseas operations of
your Bank - International Banking Group (IBG), headed by the Deputy Managing Director
(IBG) and overseen by the MD (IB, T&S).
| Overseas Subsidiaries/ Joint Ventures |
Share Holding (%) |
| Subsidiaries |
|
| State Bank of India (California) |
100.00 |
| SBI Canada Bank |
100.00 |
| State Bank of India (UK) Limited |
100.00 |
| Commercial Indo Bank LLC |
60.00 |
| SBI (Mauritius) Limited |
96.60 |
| Bank SBI Indonesia |
99.34 |
| Nepal SBI Bank Limited |
55.00 |
| Foreign Non-Banking Subsidiary |
|
| SBI Servicos Limitada, Brazil |
99.99 |
| Joint Associate |
|
| Bank of Bhutan Limited |
20.00 |
Global Presence: The Bank's first global footprint was with the branch
of Bank of Madras in Colombo, Sri Lanka, in July 1864 (First amongst Indian Banks). With a
presence across all time zones through its 227 locations in 30 countries, the State Bank
of India has gradually spread its wings across the globe. It has become a pioneer of
International Banking among the Indian PSBs. IBG is managing the overseas offices of SBI.
During FY2022, your Bank continued consolidating its overseas network
by rationalising operations with suboptimal performance and improving cost efficiencies.
Your Bank has closed an overseas Subsidiary-Bank SBI Botswana Ltd, and the Ilford branch
of its subsidiary-SBI UK Ltd., has been merged with the East Ham branch. During this
period, your Bank has not opened new branches/offices because of its focus on
consolidation and the prevailing global scenario due to the Covid 19 Pandemic. Overall IBG
had 227 offices at the end of FY 2022 with 55 branches/ offices, 8 subsidiaries with 161
branches/ offices, along with 6 representative offices & 5 managed exchange JV/
Associates.
Resilience by your Bank during a pandemic: Your Bank continues to
exhibit its stability in overseas geographies by building upon its business volumes
despite heterogeneous challenges encountered in new variants of the Covid pandemic.
IBG adapted well to optimize its cost of resources given the liquidity
flush in the market by substituting its high- cost resources with various low-cost
alternatives by diversifying its liability base. It has also leveraged its digital
offerings, such as SBI YONO, by launching in new geographies to improve penetration
through contactless offerings to raise retail deposits.
Despite various pandemic related challenges, IBG has maintained its
focus on business by registering a good growth in its overseas credit portfolio (over 15%)
during the year while maintaining asset quality. Besides meticulous credit monitoring, IBG
has been agile in managing assets showing signs of stress to minimize the possibility of
losses on account of further deterioration in asset quality. Further, it has maintained
its connection with the clientele through various outreach initiatives with exporters, and
banks, among others, to reinforce the existing relationships and forge new ones.
IBG has maintained profitability during the year despite the shrinking
of spreads and challenges in credit growth. It has exhibited marked improvement in vital
parameters such as Net Interest Income, Non-Interest Income, and Operating Profit, among
others, on a YoY basis. It is continuing to leverage new income streams such as Merchant
Banking and Receivables Financing, among others, to supplement its profitability.
The specialized departments of IBG have played a vital role in
sustaining the momentum by contributing on various fronts:
Credit Contribution & Business Driver:
While your Bank is an active partner of Indian corporates in their
global growth strategy, by arranging debt in Foreign Currency by way of ECBs through
syndicated deals in conjunction with other Indian and Foreign Banks and bilateral
arrangements, it has been increasing its presence in Local Credits by partnering with
Local/ Global Banks. Your Bank sanctioned Foreign Currency loans to the tune of USD 7.69
billion to Indian related corporates and USD 16.72 billion to overseas entities by
31.03.2022.
Sustainability: Foreign offices have participated in the credit
facilities having sustainability linked pricing to the extent of USD 1 billion.
Trade Finance: Your Bank offers a bouquet of Trade Finance products and
services to exporters and importers through an extensive, well equipped branch network
that operates in all the time zones in India and abroad. The objective of the Global Trade
Department (GTD) of IBG is to support Foreign Offices (FOs) for orderly growth of the
Trade Finance portfolio, formulate policies and innovate new products for FOs as per the
market demands and changing regulatory norms. GTD facilitates Trade Credits to Indian
Corporates for their imports by centralized handling of the Quote process and plays an
essential role in synergizing business flows between Domestic and Foreign offices to
maximize returns. It also organizes trade-related workshops/ Conferences, by partnering
with Trade bodies viz., BAFT (Bankers Association for Finance and Trade), GTR (Global
Trade Review). Workshops are also organized by partnering with ICC, FIEO among others, to
provide a platform for networking with
Exporters/ Regulators,/ Industry majors. The trade finance business
portfolio constitutes ~ 31% of the IBG advances portfolio. SBI has been awarded "The
Best Trade Finance Provider (India)-2022" for the tenth consecutive year by Global
Finance Magazine.
Overseas Treasury Management:
Treasury Management Group (TMG) at International Banking Group
undertakes the following functions for Foreign Offices:
• Liquidity Management
• Dealing Room Operations
• Investments
TMG-IBG manages the overall liquidity portfolio of IBG and also
monitors ALM ratios. TMG is the nodal department for raising Long and Medium-Term Funds
through Bond Issuance (MTN/ Standalone 144A) and Syndicated Loans. In addition to this,
TMG also utilizes various means of borrowings to keep the cost of resources in check. To
optimize the cost of resources during FY2022, the TMG has prepaid some of the high-cost
borrowings and replaced them with lower-cost funds. TMG is actively engaged with
Multilateral / Supranational entities in arranging foreign currency finance/refinance at
competitive pricing.
During the FY2022, Bank has issued Formosa bonds to the tune of USD 300
Mio in January 2022 at the tightest pricing ever for a 5-year bond issued by any Indian
Bank. This was also the first Formosa issuance by any commercial bank in India.
TMG also manages the Investment Book of your Bank's foreign operations,
which currently stands at ~USD 7.06 Bn. These investments provide stable interest income
for IBG and also help in the maintenance of liquidity ratios. The department also monitors
and provides guidance to dealing rooms at important centres and facilitates Money Market,
Forex and Derivative functions at FOs.
Currently, there are five main dealing rooms in London, New York, Hong
Kong, Bahrain and IFSC Gift City that work on a hub and spoke model to help smaller
Foreign Offices in their operations. Your Bank is also working to develop IBU Gift City as
another fund-raising centre. In FY2022, your Bank has expanded the business of trading in
Rupee Non-Deliverable Forwards (NDF) through Hong Kong, Singapore and IFSC BU
(Gandhinagar), Your Bank is looking forward to expanding this activity to other centres as
well.
TMG has coordinated the LIBOR transition activities at your Bank. Your
Bank has successfully met the transition timeline of 31st Dec 2021 for
transition to ARRs other than USD LIBOR. All the branches' domestic and foreign offices
are ready to offer products linked with ARR and have started offering ARR related products
from 1st Jan 2022.
Global Payments and Services: Global Payments & Services
(GP&S), a unit under International Banking Group (IBG), comprises three
branches/offices viz., Global-Link Services (GLS), International Services Branch Mumbai
(ISBM), and International Services Branch Ernakulam (ISBE). It facilitates online inward
remittances from overseas locations to India, Foreign Currency Cheque collection, Opening
& Maintenance of Vostro Accounts, Asian Clearing Union (ACU) transactions etc. The
highlights of the year are:
• Tie-up with 45 Exchange Companies and five Banks for
channelising inward Rupee remittances from overseas to India.
• During FY22, GP&S handled 55,467 Export bills (in USD and
Euro) on behalf of domestic branches and 16,500 Foreign Currency Cheque collections
aggregating to USD 14.98 billion.
• During the same period, GP&S handled 9.666 million online
inward remittance transactions amounting to USD 6.693 billion, received from various
global centres.
• 164 Vostro Accounts for different Correspondent Banks/ Exchange
Companies/ SBI Foreign Offices are maintained.
• Pan India Nodal Office for handling ACU transactions for SBI.
Retail Strategy: Your Bank has been a "window to India" for
NRIs residing in different parts of the world through its specialized retail and
remittances products. The notable achievements for the year are:
YONO SBI, one of the most ambitious and secure digital offerings of the
Bank, has now been extended to customers at our overseas offices. It has been successfully
launched in the UK, Canada, Mauritius, Nepal, Maldives, Bangladesh, South Africa, Sri
Lanka, and Bahrain with non-face to face account opening facility operational in UK and
Canada. We are planning to launch SBI YONO in Singapore and USA during FY23. More than
83,000 overseas customers have been onboarded through YONO.
"Namaste UK" product of YONO SBI UK has been launched,
enabling prospective Indian Expats to open an Account with SBI UK, even before landing in
the UK from India itself. A similar product has also been launched in Canada for Student
GIC accounts for Indian students enrolled in Canadian universities. We plan to launch a
similar product in Singapore in the coming months.
"One View" feature of YONO Global allows Foreign Offices
customers to view their Domestic SBI Accounts through YONO Global App, practically merging
all enquiry features of Domestic YONO SBI with Global version. More than 3900 SBI Foreign
Office customers are already using this feature.
Financial Institutions Group (FIG) - Correspondent Relations: The Group
facilitates linkages of your Bank with international stakeholders viz. Financial
Institutions (FIs), Foreign Govt. Agencies and Developmental Financial Institutions
(DFIs), among others, facilitate synergy between IBG and other business Verticals such as
Corporate Accounts Group, Commercial Clients Group, Retail Banking Group, and Global
Markets.
FIG functions as a pivot in maintaining and reviewing Correspondent
Banking relationships with a network of 224 banks in 56 countries. It also supports RMAs
(Relationship Management Application) established by domestic and foreign offices, and
your Bank has 4,255 RMA's with 845 Banks in 116 countries as of now. FIG adopts a
data-driven approach through its FI CRM (Financial Institutions - Customer Relationship
Management) application, which provides a 360-degree view of engagements with partner
banks.
FIG strives to make SBI the preferred global Banker for all Indian
Public sector and private sector banks by utilizing the SBI network's wide presence and
product capabilities in 30 countries. FIG leverages on the relationships with domestic and
foreign Financial Institutions for business development in areas of Cross border Trade
finance, Syndicated Loans, Treasury and forex solutions and other transaction banking
activities.
The relationship value is factored in the Bank's decision-making
process, including raising resources, opening new Nostro/Vostro accounts, and strategic
tie- up arrangements with banks.
IB-DOMESTIC: Your Bank is well equipped to provide a wide range of
products and services to exporters and importers through an extensive branch network that
operates domestically and internationally. International Banking- Domestic (IBD) serves as
a single point of contact between the Domestic Offices and Foreign Offices in areas
related to Trade Finance and International Banking. IBD aims to improve synergies and
trade flow between Domestic Offices and Foreign Offices/ Correspondent Banks and the
trading community by forming a strong link between them.
IBD facilitates the growth of Export Credit by actively involving
branches, trade bodies & other stakeholders. As a result, your Bank's Export Credit
portfolio (outstanding credit) witnessed an increase of 32.98% as of 31st March
2022 (YoY basis).
To facilitate the Trade community, Forex Service charges are being
rationalized and aligned with the market every year by IBD. IBD also enables
system-related enhancements and updates in Exim Enterprise/SWIFT.
Centralized Co-ordination Cell Foreign Bank Guarantee (CCC-FBG) for
processing Inward and Outward Foreign Bank Guarantee has been exclusively set up under the
aegis of IB-Domestic to provide a one-stop solution to Correspondent Banks/ Foreign
Offices/ Domestic Banks/ Domestic Offices seeking Domestic/ Foreign Bank Guarantees based
on their counter guarantees.
IBD is instrumental in improving FEMA compliance across your Bank. The
department ensures timely submission of RBI/FEMA related returns and issuing instructions
concerning revisions in FEMA/ RBI guidelines.
Technology Initiatives at Overseas Offices: Your Bank continues to
leverage technology solutions to automate processes, enhance customer experience and
manage risk. Your Bank has been consistently leveraging digital channels to provide an
omnichannel experience to Bank's customers across all geographies. YONO Global App has
emerged as the prime fulcrum for providing banking services to retail customers. With
almost 50% of the custom i to access banking services, the platform has evolved with
enhanced features such as online account opening and real-time payments enabled via QR
Codes, bill payments, among others
Your Bank has also embarked upon a complete revamp of its e-Banking web
platform following the latest functionalities and industry standards. This has been
completed across six geographies during the year. Aiming to achieve dual objectives of
cost-saving and increased efficiency, consolidation of back-office processes has gained
momentum with the migration of jobs from 2 more geographies, i.e., Canada and Singapore
(in addition to the UK and Bahrain). Your Bank has ensured that all the compliance aspects
- including data privacy and proper governance for these services are provided by entering
into internal service level agreements as per industry standards.
With Compliance remaining the principal focus, your Bank has ensured
the roll-out of regulatory prescribed IT developments as per defined time frames across
all geographies. These include card tokenization and online refund functionality in
Bahrain. Other developments include online customer consent registration for data sharing
and Go-AML reporting for AML-CFT controls.
Your Bank has embarked upon automation of Regulatory reporting through
a state-of-the-art centrally provisioned reporting system at its foreign offices/
subsidiaries during the year. It plans to complete the roll-out by FY2023. Your Bank has
completed online integration with Singapore's real-time immediate payment system, namely
G3-FAST. It will enable payment processing on a real-time basis (24x7x365), maximizing the
ability to deliver innovative and commercially attractive products while minimizing
settlement risk.
7. Commercial Clients Group (CCG)
Commercial Clients
The CCG vertical handles the credit needs of medium & large
corporate clients , with funding requirements of above '50 cr. CCG has 51 branches spread
across the country, including 3 direct branches headed by GMs. The vertical also includes
specialised branches catering to specific industries like Diamond, Ceramics and Capital
market. The mandate of the vertical is to cater to the complete needs of this segment of
corporate clients, manage the associated risks and sustain growth.
The vertical is headed by the Deputy Managing Director and overseen by
the MD (CB & GM), and 5 CGMS manage the portfolio, (including 1 CGM for Project
Finance) and 1 CGM overseeing Operations. CGMs in the CCG are assigned as the group
relationship owners to improve the quality of coverage and enable an integrated view of
exposure and earnings amongst others across the entire group. The business model of the
CCG is also based on the Relationship Management concept with each Relationship team
headed by a Relationship Manager & supported by skilled credit analysts and operating
functionaries. The Relationship team is hence equipped to handle the entire customer
requirement and draws upon the skill sets available in various SBUs where required to
fully meet customer requirements. CCG has also formed the Centralised Resolutions Team
handling the specialised requirements of customers requiring resolution due to the
pandemic as well under the June 7 2019 RBI guidelines and for the monitoring of the
approved resolution plan for customers with exposure more than '200 crores. Timely and
comprehensive intervention is the most important aspect for resolution.
Some key initiatives to promote Export Credit Growth were taken during
the year. These include:
Extension of T-Bill Rates to Rupee Export Credit: External Benchmark
(T-Bill Rate) linked interest rates are extended to WCL and LC Bill Discounting facilities
to encourage top-rated borrowers to increase utilisation of limits. Considering the
present competitive market, the T-Bill rate linked to interest rates has also been
extended to rupee export packing credit facilities.
Exporters? Meet: Various exporters' meets were conducted across
India to increase exporters' awareness of the banking facilities offered by SBI.
TRRACS Software: Your Bank has introduced Trade Regulatory Reporting
and Compliance Solution (TRRACS) Software, which has led to a reduction in pending
EDPMS/IRMs/Export advances entries over a period of time, and we could succeed in the
removal of these entries substantially, enhancing customer satisfaction.
Apart from these initiatives, a Digital Interface on Pricing and
Knowledge (DIPAK), a pricing tool, has been made available to operating functionaries and
sanctioning committees to enable data-driven pricing of corporate loans. This has been
actively used in all the branches of CCG and has helped the vertical in better pricing of
products.
Project Finance and Structuring SBU
Your Bank's Special Business Unit, known as Project Finance and
Structuring Strategic Business Unit (PF&S SBU), deals with the appraisal and
arrangement of funds for large projects in infrastructure and other sectors such as Power,
Roads, Ports, Railways, Airports, and Refinery amongst others. It also covers other
noninfrastructure projects in industries such as Metals, Fertilisers, Cement, Oil and Gas,
and Glass, amongst others, with a certain threshold on minimum project cost. The PF&S
SBU also supports other verticals for vetting their significant ticket term loan
proposals. To strengthen the policy and regulatory framework for financing infrastructure,
it provides advice to various Ministries of Government of India and the RBI with respect
to lenders' views on new policies, Model Concession Agreements and broader issues being
faced in infrastructure finance.
There has been a step up in investment in the infrastructure sector by
the government along with various initiatives, sectoral reforms and incentives, such as
the National Infrastructure Pipeline (NIP), National Monetization Plan (NMP), Performance
Linked Schemes (PLI), Disinvestment of Public Entities, Sustainable Lending, Gati Shakti,
and National Single Window Systems (NSWS). This has resulted in an inflow of new projects,
particularly in sectors such as City Gas Distribution, Road, Power Renewables, Metro Rail,
Green Hydrogen, and Warehousing, among others.
Based on sustained liaising with Government Ministries, Authorities,
and specialised Marketing endeavours, your Bank is well poised to garner more business
opportunities and maintain a leadership position in the infrastructure lending space. Your
Bank is closely monitoring all the projects under implementation and expects to tide over
the impact of the COVID-19 pandemic through the short to medium term.
Your Bank has also set up an experienced team of ‘Structuring
Specialists' to support deal structuring for significant proposals across lending, bonds,
International Banking, and Structured/Mezzanine Finance.
8. Stressed Assets Management
Today, SARG stands as one of the most important verticals of your Bank,
and the GNPA of your Bank is on a course of a downward journey. Resolution of stressed
assets by SARG presents the following latent income generating avenues for your Bank:
• Cash recovery in NPAs and AUCA
• Reduction in loan loss provisions
• Contribute to your Bank's bottom line.
• Unlocking the capital for credit extension.
The movement of NPAs in the Bank and recovery in written-off accounts
during the last five financial years:
| Particulars |
FY 2018 |
FY 2019 |
FY 2020 |
FY 2021 |
FY 2022 |
| Gross NPA |
2,23,427 |
1,72,750 |
1,49,092 |
1,26,389 |
1,12,023 |
| Gross NPA |
10.91% |
7.53% |
6.15% |
4.98% |
3.97% |
| Net NPA |
5.73% |
3.01% |
2.23% |
1.50% |
1.02% |
| Fresh Slippages + Increase in O/s |
1,00,287 |
39,740 |
54,510 |
29,332 |
26,776 |
| Cash Recoveries / Up- gradations |
14,530 |
31,512 |
25,781 |
17,632 |
21,437 |
| Write-Offs |
40,196 |
58,905 |
52,387 |
34,403 |
19,705 |
| Recoveries in AUCA |
5,333 |
8,345 |
9,250 |
10,297 |
7,782 |
| PCR (Incl. AUCA) |
66.17% |
78.73% |
83.62% |
87.75% |
90.20% |
| PCR (Excl. AUCA) |
50.38% |
61.86% |
65.21% |
70.88% |
75.04% |
Coming out of challenges posed by pandemic aftermath, your Bank is
taking all pre-emptive measures by extending assistance to its borrowers to face the new
challenges & continue as performing assets. However, the current level of NPA has
significantly come down over the years due to consistent recovery efforts including:
• Insolvency and Bankruptcy Code (IBC) 2016 for resolution of
stressed assets has provided Bank with a time-bound, transparent, and effective mechanism
to tackle stressed assets. Resolutions have been achieved in some of the high-value NPA
accounts referred to the NCLT under the code. The cases referred to NCLT for resolution
are monitored at a specialised NCLT cell at SARG. A total of 994 cases (whole Bank) were
referred to the NCLT on 31st March, 2022, out of which 773 cases have been
admitted. Furthermore, 152 cases have been resolved, including some high-value accounts
from RBI's 1st & 2nd reference lists.
• The OTS/Compromise route is also explored to recover sticky
loans from eligible cases. Bank's Board approved OTS scheme for various products,
nondiscretionary and non-discriminatory, is also offered to all qualified borrowers for
maximising resolutions.
• RBI's 7th June, 2019 circular on a prudential
framework for resolution of high-value distressed assets has provided a new avenue for
time-bound resolution of these accounts. Your Bank is actively exploring resolution under
this model.
• In non-NCLT cases, recovery is explored through action under the
SARFAESI Act and suit filing in DRTs and courts. The sale of mortgaged properties is
explored through the common e-Auction platform https:// ibapi.in (‘eBKray - Indian
Banks Auctions Mortgaged Properties Information) under the aegis of IBA.
Sector Specific Targeted Approach:
The Stressed Assets Resolution Group (SARG) focussed on prioritising
the resolution of NPAs through a sector- specific approach. Currently, the vertical is
headed by the Deputy Managing
Director and overseen by the Managing Director (R, C & SARG) and
two Chief General Managers overseeing the sector- wise portfolio and a CGM (Operations)
monitoring the credit portfolio of accounts with an outstanding up to '50 crore and
accounts under liquidation. The Account Management Teams function under the guidance of
six General Managers. As of March, 2022, SARG has 17 Stressed Assets Management Branches
(SAMBs) and 47 Stressed Assets Recovery Branches (SARBs) across the country, covering 56%
and 88% of your Bank's NPAs and AUCA, respectively.
Compromises and NCLT: Apart from normal recovery, a significant portion
of the recovery at SARG comes from compromises and NCLT. The vertical also introduces
special OTS schemes (non- discretionary and non-discriminatory) from time to time. A team
has been set up to look after the sale of assets to Asset Reconstruction Companies (ARCs)
on a Cash or Security Receipts (SR) basis.
Innovation in the Resolution of Stressed Assets: SARG introduced
specific innovative methods and gave first-mover advantage to your Bank in areas such as
arranging mega e-Auction of a large number of properties on a Pan- India basis. For this
purpose, the Bank is also making extensive use of a common landing platform for PSBs
(https://ibapi. in ‘eBKray' - Indian Banks Auctions Mortgaged Properties
Information).
Resolution under IBC is a market-oriented mechanism where a higher
number of bidders for a particular stressed corporate debtor result in better valuation
and maximisation of recovery for lenders. Hence, a marketing team has been set up at SARG
to reach out to a broader investor base and showcase our stressed asset undergoing
resolution under/ outside IBC.
The transfer of eligible assets to NARCL is also being monitored at
SARG with requisite enablers already implemented to ensure the smooth migration of
identified assets. Around 22 accounts with aggregate exposure of approximately '17,000
crore are proposed to be transferred to NARCL in phases.
Various new IT initiatives have been rolled out, including LITMAS
(Litigation Management System), to better monitor legal recourses undertaken in the
stressed accounts for expediting recovery. It will further strengthen the transparency and
efficiency of the process.
IV. Support and Control Operations
1. Human Resources and Training
A. Human Resources
Your Bank believes in and acknowledges the critical role of its
employees in achieving its present and future organisational goals. SBI recognises the
employees' focussed efforts to steer the Bank's performance to greater heights even during
the turbulent period of the Covid Pandemic. The human capital of your Bank has
demonstrated high motivation and spirit to face the new age challenge on the front of
technology.
The Human Resources (HR) policies focus on making your Bank an
employee- oriented, profitable and growing business organisation over a more extended
period of time.
The summarised HR Profile of the Bank as of 31st March 2022
is as under:
| Category |
FY2021 |
FY2022 |
| Officers |
1,08,772 |
1,11,549 |
| Associates |
1,00,796 |
99,259 |
| Subordinate |
36,084 |
33,442 |
| staff & Others |
|
|
| Total |
2,45,652 |
2,44,250 |
Productivity Enhancement Initiatives
Your Bank adopts a branch-based model for manpower planning to ensure
optimal utilisation of Human Resources. The model is based on the productivity parameters
at the branches like identified work drivers of operations, transaction load factors,
number of advance accounts, feedback from the operating units and organisational
structure, among others.
Your Bank has streamlined its promotion and transfer process, and these
are now completed in the first quarter of a financial year. This gives the branches and
other units the required assurance and stability to actively focus on business activities
during the major part of the year. In FY2022, despite the challenges posed by the Covid-19
pandemic, the promotion process was completed within the stipulated time.
Your Bank's Career Development System (CDS) under project
"Saksham" ensures a transparent, credible data-backed performance evaluation
process for the assessment of employee performance. The system ensures accountability,
performance, visibility, and greater alignment between individual and organisational
goals.
Specialised skills are critical to success for a bank with a large
footprint and diversified roles. Your Bank has defined seven Job families and career
paths, viz. Credit and Risk, Sales, Marketing and Operations, HR, Finance and Accounts,
Treasury & Forex, IT and Analytics for its officers in Scale-II to V to ensure deep
domain knowledge and foster expertise.
Your Bank has put a policy on succession planning for the senior
leadership positions to ensure a smooth transition at all the critical executive-level
placements. Succession planning exercise has been completed for essential profiles of all
DMDs, CGMs, and GMs during FY2022.
"SBI GEMS", a mechanism to promote recognition and develop
organisational memory of such recognition, is in place in your Bank.
Recruitment
Your Bank is actively recruiting specialised talent on a lateral and
contractual basis in Wealth Management, IT, Information Security, Risk, Credit, and Audit,
among others to meet the demands of the fastchanging business landscape and the regulatory
requirements.
Your Bank is making extensive use of digital platforms in the
recruitment process to reach out to a broader pool of candidates. Recruitment
notifications and advertisements are published on Linkedin, naukari.com, iim.jobs, among
others besides publishing recruitment notification on Facebook & Instagram handles.
The use of social and digital media in recruitment process has enabled Bank to reach out
to a larger pool of tech- savvy and aspiring candidates. Bank has also tied up with
professional bodies such as ICAI to reach out to a good talent pool of candidates for
specialist positions.
Your Bank has formulated a comprehensive policy for engagement of its
retired employees on a contractual and short term basis for identified assignments such as
marketing, recovery of stressed assets, digital initiatives, risk management, audit and
compliance, ATM monitoring, and channel management, among others. This will facilitate
filling the skill gap and help the Bank reduce its expenses to income ratio.
Gender Diversity: Gender Sensitivity and Inclusiveness have always been
the cornerstone of your Bank's HR policy. Out of the total workforce, the representation
of women is 26.55% spread across all geographies and levels of hierarchy.
Reservations & Equal Opportunity:
Your Bank meticulously follows the GOI directives on reservation policy
for SC/ ST/OBC/EWSs/PWD. The Bank has a representation of SC, ST, OBCs and
differently-abled persons among all the cadres of its workforce. Your Bank has implemented
reservations applicable to "Economically Weaker Sections" in direct recruitment
from 1st February 2019 in terms of the GOI guidelines.
Representation as of 31st March 2022
| Cadre |
Total |
SC |
ST |
OBC |
EWS |
DAPs* |
| Officers |
1,11,549 |
20,366 |
9,419 |
25,764 |
246 |
2,415 |
| Clerical |
99,259 |
15,750 |
7,686 |
25,987 |
693 |
2,475 |
| Sub staff |
33,442 |
8,101 |
2,164 |
8,662 |
0 |
206 |
| Total |
2,44,250 |
44,217 |
19,269 |
60,413 |
939 |
5,096 |
* Differently Abled Persons
Industrial Relations & Staff Welfare:
Your Bank has a harmonious relationship with the staff and officers'
federations. Your Bank has been continuously emphasising a healthy work environment,
mutual respect and empathy at the workplace to foster a healthy and happy workforce. Your
Bank took several transformative initiatives during the year for Staff Welfare to ensure
that your Bank remains at the forefront of banking in India and your Bank's employees are
equipped to meet the challenges of tomorrow.
COVID-19 Pandemic: The 2nd wave of covid pandemic hit the
country hard at the beginning of FY2022 and took a heavy toll on lives, which included
many SBI employees. However, it did not deter the unwavering spirit of the Bank's
committed frontline staff, who ensured to deliver uninterrupted financial services across
the length and breadth of the country by fine tuning its existing model of work, even with
reduced staff strength due to pandemic related restrictions and associated lockdowns. Your
Bank has undertaken an intensive vaccination drive pan India for all employees and their
family members by arranging vaccination camps in association with reputed hospitals,
health care providers and local authorities. The proactive vaccination drive has achieved
almost 100% of eligible employees getting partially vaccinated and more than 90% fully
vaccinated. For the sake of the national cause, around 2.50 lakh employees voluntarily
came forward on the occasion of the 66th Foundation Day of the Bank and donated
an amount of Rs.62.62 crore to the PM CARES Fund. This shows your Bank's unwavering
commitment to supporting the nation in its fight against the Covid-19 pandemic. This was
the second time in successive years that State Bank Employees have contributed to the PM
CARES Fund. Last year, they also contributed '100 crore for the same cause.
Care & Assistance for Retired Employees: In compliance with GOI and
RBI directives, your Bank has implemented a revision in family pension payable at a
uniform rate of 30% without any cap. An "Audio Visual guide" demonstrating the
step-by-step process of submitting a video life certificate on "Jeevan Pramaan
Portal" has been launched to help the pensioners. Your Bank has also extended the
facility of submitting a "video-based life certificate" through the
"MyHRMS" app to SBI family pensioners.
B. Training: Changing the Game
The objective of training in your Bank has always been to enhance the
workforce's knowledge, skills, and attitude, for superior business performance and
customer orientation. The Strategic Training Unit (STU) of your Bank has introduced
significant game-changers into the training eco-system to create a smarter and more
impactful learning journey for your Bank's employees. The initiatives taken during the
year by our six top-notch Apex Training Institutes (ATIs) and 50 State Bank Institutes of
Learning and Development (SBILDs) have been successful and much appreciated.
Creating Unique Programmes for High Impact Learning
"Samarthya" Engagement Programme for Young Employees: Your
Bank launched Samarthya, an engagement programme for all young employees in the age group
of 35 or below, in December 2021. The programme has been designed for blended learning
through a unique new hybrid channel - "Smart Classroom". Both Officers and
Clerical staff attend the programme as a group, promoting rich cross-pollination of
perspectives and ideas. Over 67,000 employees are to be trained under the programme, and
72% have been covered in FY2022. The programme's objective is to impart to the young
employees, a clearer picture of the ethical and professional standards expected of them
together with a positive service orientation, so that they genuinely epitomise our
legendary organisation that has been serving India for more than 200 years.
"Leadership Lessons": Your Bank
organised a series of interactive, virtual Power talks by top
management and eminent external luminaries, for newly promoted GMs/ DGMs. For grooming and
strengthening the leadership skills of the newly promoted officials by learning from the
experiences and perspectives of top management and eminent industry/ leadership experts.
"Specialised Training Programmes":
Your Bank organised Specialised Training Programmes for 130 Top
Executive Grade officials in the specialised areas of International Banking & Global
Market, Human Resources and Digital Banking & IT, to prepare future leaders in these
domains.
Pioneering Learning Channels for Uninterrupted Skilling Smart
Classrooms: The Smart Classroom infrastructure has been newly created at Administrative,
Regional and Local Head Offices of your Bank throughout the country. It has opened up new
training capacities while working around the pandemic disruptions. More than 400 Smart
Classrooms impart training to more than 2,000 employees a day. A Smart Classroom is a
classroom where virtual pedagogy-based training is provided to a small group of employees
based in a geographic region. It combines elements of online learning and peer presence/
interactions in a focused classroom-like situation, for greater engagement and training
efficacy.
Audio learning: A fillip was given to Podcast based learning through
"SBICB- on-Air" podcasts on General Banking with 59 episodes & more than
15,000 listens and "Gurukul Vani" on topics related to Credit, Risk, NPA, etc.,
with more than 54,000 listens.
e-Panel Discussions: With the advent of social distancing, your Bank
has convened 23 e-panel discussions for the current knowledge needs of the employees with
participation from renowned industry experts and top management.
Theme-based Fridays: Under this initiative, theme based webinars on
topics in different domains are conducted every Friday. The Themes have been designed to
best suit the requirements of the operational staff in the context of the current banking
environment. Twenty-seven such webinars were conducted with an average participation of
225 staff.
Multi Theme Portal of Virtual Case Study Discussion Board (CSDB): The
multitheme functionality of CSDB was launched this year. Case studies on several themes
are hosted on the portal every fortnight, and employees compete to complete a quiz and
answer questions based on the Case Study. Peer learning is promoted through a virtual
"Discussion Board". The host ATI also arranges for an e-panel discussion with
panellists from the respective vertical, external speakers and faculty. Since its
commencement in 2020, more than 97000 employees have participated in the initiative
Focus on Quality for Deep-rooted Learning
Revamp of RBCs: 42 mandatory internal Role-Based Certifications (RBCs)
have been designed and placed on SharePoint and the mobile platform for anywhere, anytime
accessibility. These e-Role Based Certifications are followed by an entirely case
study-based certification examination for a deeper understanding and practical application
of the concepts. 98% of the eligible officers and 97% of the eligible award staff cleared
their e-RBCs during the year.
Massive Open Online Courses (MOOC) such as e-Lessons: In addition to
the repository of elective e-learning content, which is available to employees, in FY-
2021-22, four new mandatory e-lessons on relevant subjects have been developed in a new
MOOC format for enhanced engagement and user interest. 95% of eligible employees have
completed these e-lessons.
Research: The Research wings at ATIs partnered with BUs for studies on
the financial and industry trends and carried out studies on learner interest and training
efficacy to ensure the alignment of training to business needs. A total of 70 studies were
undertaken in FY2022.
External Academic Connect: Your
Bank creates exclusive programmes for prestigious organisations, which
helps us keep abreast of external developments, hones the training skill of faculty and
also catalyses interchange of ideas, all of which distils into better training quality for
SBI employees. Bank's clientele range from Regulatory bodies and Government departments to
Public and Private Sector Banks, Corporates- both domestic and international, and reputed
B-Schools.
Contemporary Content Aligned with User Needs
Gender Equity: Samya 2.0 by ATI is a collection of interventions which
reinforce gender parity and sensitivity in the workplace. During the year, the highlights
of the initiative were 10 case-let based quizzes, 10 webinar programmes for employees, an
e-compendium on situation analysis and an annual magazine putting forth the views of women
leaders in your Bank.
Inclusiveness: A week-long specialised training programme for Visually
Impaired (VI) & Hearing Impaired (HI) employees working from home was conducted, in
collaboration with SBI Foundation to ensure their engagement even when exempted from
attending office. Twenty- three such programmes were conducted during FY2022.
Aspirational Courses: 10 Aspirational Courses have been designed by
different ATIs, to encourage employees to enrich their knowledge and skills beyond role
objectives. The aim is to help employees in future career progression, by giving them the
means to upgrade themselves with knowledge and skills in areas that may be
related/unrelated to their current role.
Upholding Corporate Concerns: Your
Bank cares deeply about providing excellent customer service and
creating safe workplaces. Comprehensive training support in the form of customised content
design, training to Faculty /mentors for impactful delivery and effective programme
delivery is ensured for sustaining User Department Projects such as Project
"Utkarsh" on Customer Service and Project "Maitreyi" on Mentoring the
Mentors for equipping the identified senior women officers to guide the younger women
employees, understand their problems and help them resolve conflicts.
Quality at Core: The objective of "Quality at Core" was to
create a sustainable independent troubleshooting mechanism at 691 identified branches,
leveraging the tenets of the Quality Circle (QC) Concept to resolve problems related to
banking and operations. The SBILD Faculty guides them in the implementation of the
projects. In FY2022, all branches under the intervention have successfully implemented two
projects each.
Online Assessment Centre: To gauge the competencies of senior officials
of the Bank, an Online Assessment Centre/ framework was developed to assess and evaluate
the leaders' competencies viz-a- viz organisational competency framework, followed by
sharing of Individual Developmental Plans (IDPs) and a guided development journey. In
FY2022, 2233 assessments were completed, IDPs shared with the officers, and their
Development Journeys (DJs) initiated.
Family-friendly event to foster positivity:
SBI Wizards, an annual quiz competition in which family members of
employees also participate, is in its second year. More than 16000 families registered for
this annual mega-event.
Leveraging Digital for Self-motivated learning
Continuous self-learning was implemented using exciting content,
delivered through online modes; on an average 10,000 employees participate every month in
the daily quizzing portal, My Quest Today. Further, several users registered for Gamified
learning App- Play2Learn, crossed 69,000 and askSBI - the in-house search engine was used
by 92.74% of branches of your Bank in FY2022.
Creating a Distinctive External Identity Tie-up with NSE: SBI has a
robust inhouse training infrastructure, world-class digital learning content and
proficiency to deliver specialised training on diverse subjects. To explore the avenues of
association to market in-house content/ courses, your Bank was invited by NSE Academy to
host SBI's E-Learning content on their digital platform. SBI entered into an agreement
with NSE Academy in June 2021 to host courses on their NSE Knowledge Hub.
MOU with edX: As a part of an agreement with edX, your Bank is offering
its Massive Open Online Courses (MOOCs) on the edX platform. In FY2022, 25 courses were
hosted on the edX platform, in different domains, taking the total number of
faculty-developed courses hosted by SBI on edX, to 37 with 29,000+ learners worldwide.
Apprenticeship- Contributing to Nation Building: Your Bank has engaged
more than 2455 apprentices under the Apprentices Act, 1961. After completing their Basic
Training, they are now undergoing a year-long on-the-job training (OJT) at our branches
across the country.
Growing Sustainably
Your Bank believes in responsible consumption to positively impact the
world. ATIs & SBILDs use clean energy using solar plants and employ water conservation
and rainwater harvesting systems; many have captive Sewage Treatment Plants (STPs) with
recyclers and vermicomposting for recycling biodegradable wastes. We also maintain all
ATIs & SBILDs as "Plastic Free Zones" where single-use plastic is not used.
Four of six ATIs are certified as Green Buildings by Indian Green Building Council, with
three rated Platinum and one Gold.
Milestone & Recognition State Bank Staff College (SBSC), Hyderabad
celebrates its Diamond Jubilee: Established on December 2, 1961, in Hyderabad, SBSC is one
of the earliest such training institutes in the country. For the past six decades, Staff
College has trained generations of bankers within the State Bank of India and officers
from other banks in India and abroad. The institute also conducts training programmes for
educational institutions and government officials. Most of the Top Management of State
Bank of India, over the years, received their initial grooming at State Bank Staff
College. The Staff College celebrated its Diamond Jubilee, in a commemorative function,
held at its premises at Begumpet, Hyderabad. The event was graced by Chairman.
Your Bank won Gold in the prestigious ET Human Capital Awards under the
category ‘Excellence in Creating a Culture of Continuous Learning and Upskilling'.
2. Information Technology
A. Network Infrastructure Improvement:
Your Bank has taken several initiatives during the year to ensure
smooth operations and customer satisfaction. Your Bank has been working on upgrading the
ATM connectivity by arranging 4G connectivity to off-site ATMs. Your Bank is relentlessly
working to improve the network experience and minimise branch isolations. Your Bank has
arranged Alternate Secondary Links to the branches and offices to reduce the impact due to
the link failures. Several unreliable and high- latency network links have been replaced
with low-latency wired and terrestrial wireless links. Your Bank has devised to receive
early warnings and insights related to complex cybersecurity threats and comply with the
regulatory requirement per RBI Cyber Security Framework by arranging a honeypot solution.
Your Bank, in its endeavour to better manage its network operations, has established an
advanced AI/ ML and Analytics based Network Operating Centre.
B. YONO
YONO, the path-breaking and secure digital offering of your Bank,
launched on 24th November 2017, has already crossed 111.74 million downloads
and has touched 16.62 million logins in a day. With the user- friendly interface,
attractive branding, round the clock availability, and new innovative features in the App,
YONO has helped the Bank reposition its Brand image as New Generation Bank, with a
sustainable competitive advantage having various unique and state of the art technological
features. YONO is a single touchpoint and one-stop solution for various Banking, Financial
& Lifestyle needs of the customer through a convenient, intuitive, and user- friendly
omnichannel interface through a Mobile App (both android & iOS) offering customers one
view for an enhanced digital experience.
Customers can conveniently avail of pre-approved loans without visiting
the branch, involving little to no paperwork. They can also access various financial
products from the Bank's Joint Venture Companies comprising SBI Life, SBI Caps, SBI Cards,
SBI Mutual Fund and SBI General Insurance. YONO Cash, a game-changer functionality, allows
the customers to make cardless withdrawals from SBI ATMs and PoS.
YONO Krishi is a comprehensive multilingual platform for agriculture
segment customers offering simplified finance for Agri Gold Loan, KCC Review, SAFAL Dairy
(Pre-Approved Agri Loan), advisory/market intelligence related service (Mitra), Market
linkages through online Market Place for agri-products (Mandi), Bachat (Financial Super
Store for farmers investment and insurance needs).
YONO has always been committed to providing enhanced user experience to
customers, obviating the need to visit the brick-and-mortar branch and continuously
strives to offer new, secure, convenient, responsive, and innovative financial solutions
to the customers. During the FY2022, your Bank has provided transformational journeys.
These include Insta Plus Video KYC Account Opening, SBI Easy Ride Pre-Approved 2-wheeler
Loan, NPS Account Opening, SAFAL Dairy Pre-approved Agri Loan, Online Demat and Trading
Account Opening, Car Loan New to the Bank (NTB), SIM Binding during App Registration,
Government schemes through YONO, SBI Kavach Personal Loan scheme etc. and 86 other
enhancements.
C. Channels & Operations
1. Payment Aggregator and
Payment Gateway (e-Pay & PG)
Your Bank works both as a payment aggregator and payment gateway. A
unique PCIDSS certified secured platform facilitates seamless e-commerce transactions
between businesses, merchants, Customers and financial institutions for various payment
modes. The platform is provided through Bank's Payment Aggregator (SBI e-Pay) and Payment
Gateway (SBIPG) applications by integrating with thousands of Merchants at the one end and
many Payment Channels such as Banks, Wallets and
Cards at the other end. SBIePay (Bank's Payment Aggregator Solution) is
PCIDSS, and ISO27001:2013 certified.
During the financial year, SBIePay has added 343 new merchants,
including prestigious merchants such as Central Power Research Institute, Indian Institute
of Information Technology, Nagpur, Uttar Pradesh Metro Rail Corporation Ltd., Kanpur
Metro, etc. As of 31-03-2022, 1,502 merchants were integrated with SBIePay.
Following significant developments were rolled out during the year:
• Added UPI QR code as a payment channel.
• Launched a Ticketing system for tracking and monitoring
complaints.
• TXN initiation API for merchants to initiate Transaction via
server-to-server call will avoid MITM attack.
SBIPG, a PCIDSS certified application, processes all card-based
transactions of Payment Aggregators, SB Collect, SBI- MOPS and YONO. SBIPG added 10074
sub-merchants during the financial year. As of 31-03-2022, 68,714 sub-merchants are
integrated with SBIPG.
Following significant developments were rolled out by SBIPG during the
year:
• BEPG Phase 2 with SI and EMI features for RUPAY Cards.
• SBIMF Integration with IPAY PG.
2. Payment System (PS)
Your Bank holds a significant share in N EFT remittances. Your Bank has
processed 130.17 crore transactions, constituting over 17.93% of the market share. Under
RBI's Indo-Nepal Remittance scheme, the limit for remittance to Nepal has been enhanced to
'2.00 lakhs per Transaction.
Your Bank is a significant player in RTGS remittances and has processed
more than 5.36 crore transactions involving more than '297.87 lakh crore.
Your Bank holds a significant share in CTS Clearing with 14.92 crore
transactions and 21.49% market share. Value-wise clearing transactions amount to '16.71
lakh crore with a market share of 26.14 %.
Your Bank uses the SWIFT messaging system for cross border financial
message transmission. Your Bank has processed 32.88 lakh financial messages. Your Bank has
fully complied with all the 22 mandatory controls and 9 advisory controls prescribed by
the SWIFT.
Your Bank is in the process of centralisation of NACH processing of all
variants of NACH.
3. Payment Solutions Debit Cards: Debit Cards: E-mandate on debit cards
for recurring transactions was rolled out in October 2021, which allows the customers to
authorise your Bank to perform the same value transaction at a stipulated frequency in
their account during the mandate period. A new "Jandhan" debit card with a
contactless feature has been rolled out.
Rupee Prepaid Cards: Your Bank provides Rupee denominated Prepaid Cards
like Gift Card, e-Z Pay Cards, Imprest Cards, and Achiever Cards, among others, targeted
for various customers and business segments.
NAV-eCash Card: Your Bank has developed an innovative NAV-eCash prepaid
card with a dual-chip interface (EMV and offline chip) to facilitate both online and
offline transactions. The dualchip cards are also suited to organisations that need to
undertake online and offline transactions depending on the availability of internet
connectivity.
State Bank Foreign Travel Card (SBFTC): SBFTC is an EMV chip and PIN
compliant prepaid card in foreign currencies providing safety, security, and convenience
to outbound travellers (valid worldwide except in India, Nepal and Bhutan). SBFTC is
available as a Single currency and Multicurrency card. It is available in nine currencies
- US Dollar, British Pound Sterling, Euro, Canadian Dollar, Australian Dollar, Japanese
Yen, Saudi Arab Riyal, Singapore Dollar, and UAE Dirham.
SBI FASTag: Bank has issued more than 20 lakh SBI FASTag to corporate
and retail customers. Toll transactions through the SBI FASTag have crossed a mark of 7.70
crore, and the total transaction amount has crossed the '1,251 crore level in FY 2021-22.
Metro and Transit Projects: Your Bank has participated in various metro
and transit projects to digitise micropayments rapidly. Your Bank has been awarded Nagpur
Metro, Noida Metro and MMRDA Lines 2A and seven metro projects to implement qSPARC
technology on the RuPay platform. Bank has issued 1,05,000 prepaid cards in metro
projects. This year Bank has been awarded Chennai metro and Kanpur metro for Card
Issuance, Acquiring and AFC implementation/ integration.
Merchant Acquiring Business (MAB): In line with the Government of
India's efforts to promote a less cash economy, your Bank has expanded its digital
footprint across the country, including aspirational areas such as Ladakh, J&K and
North east, by deploying more than 24 lakh Merchant Acceptance Touch Points. It includes
9.24 lakh PoS terminals, 4.73 lakh Bharat QR code and 10.50 lakh merchants on BHIM-
Aadhaar-SBI application downloads.
Your Bank has also had asset lite acceptance models like SoftPOS (YONO
Merchant App), allowing merchants to self-onboard on the app to accept payments. Various
value-added services like DCC/EMI, Pre- Approved Business Loan (PABL) are being focused
upon for customer convenience
Your Bank continued efforts to onboard merchants from premium segments
like Oil Marketing Companies (OMCs), retail chains, lifestyle stores, and holiday resorts
apart from consolidating the existing business. Your Bank has tied up with major
corporations and government departments to migrate their operations from cash to digital
mode.
4. Branch Operations
Branch & CPC Redesign Department is continuously working for
improvement in customer experience at the Branch. Ensuring uniformity of branches in
ambience and customer service is a significant focus area. Many projects have been
initiated to provide end to end digitization of products and services for customer
delight.
Image-Based Processing at Liability CPC & Video KYC Based Account
Opening: For opening new accounts in most customer categories (Individual &
Non-individual) more quickly and efficiently, image-based processing has been initiated in
the year 2021-22. For the convenience of customers to open an account from the comfort of
their home or office, a new account opening facility through Video KYC (Know Your
Customer) was launched on 22.04.2021. Around 6.40 lakh accounts were opened till March
2022.
5. Foreign Office
YONO Global Mobile Application: In a quest to increase Digital
footprints across the geographies, your Bank has launched YONO Global, keeping in mind the
Digital Transformation and new Digital Banking Offerings for Retail Customers at SBI's
Foreign Offices (FOs)/Subsidiaries. Your Bank has rolled out YONO Global mobile Banking in
six more FOs this FY, i.e., Canada, Bahrain, South Africa, Bangladesh, Sri Lanka and
Nepal, taking the tally to 9 Countries.
Yono Global Web Portal: Your Bank has introduced Yono Web Portal
(Internet Banking) for retail customers of foreign offices/subsidiaries. The new portal
has been made live for 6 foreign Offices, viz. UK, Mauritius, Maldives, Sri Lanka,
Bangladesh & US. Yono US Web portal for Corporate Customers has been rolled out for
SBI New York & Chicago branches, which has replaced the locally hosted ACI Worldwide
application with enhanced customer experience.
Treasury Application Upgrade: During the year, your Bank has upgraded
the Treasury application to its latest version and added a few new modules. The key
benefits of the upgrade available to all foreign offices are as follows:
• It supports derivative products such as currency options and
future and equity trading.
• Stress Testing Module, covering both Sensitivity and Scenario
Analyser modules.
• Collateral Management Module.
• Generation of a dual set of reports as per Ind-AS and Indian
GAAP and ability to comply with future Ind-AS requirements for accounting etc.
• Calculation of Modified Duration of perpetual bonds having
call/put option.
• Generation of NOOP report on a realtime basis.
LIBOR to ARR/RFR Transition: Because of the evolvement of the global
ecosystem with the Introduction of Alternate Reference Rates (ARR) to replace LIBOR, your
Bank took the initiative to implement the ARR regime (Over Night Reference Rate/ Term
Rates) in its Core Banking, Treasury and Trade Finance operations at its Foreign Offices
and Subsidiaries.
Your Bank has upgraded its Trade Finance Application for all Foreign
Offices and Subsidiaries in line with the SWIFT upgrade for Bank Guarantee / SBLC related
messages.
6. ATM
Your Bank's ATM department is PCIDSS Compliant, a benchmark security
standard for the payment card industry. It stands tall, serving 25.34 crore active debit
card users on 31st Mar' 2022. Following new facilities have been rolled out
during the fiscal year:
• TLS 1.2 implementation has been completed in all ATMs in record
time to strengthen the security between ATMs & networks. MAC (Message Authentication
Code) has been piloted successfully to enhance security between End Points (ATMs) and
Switch.
• As per RBI directions, facility to customers to set limits
either on ATM or through IVR.
• Digitization of Payments (Offline mode) onboard INS-Vikramaditya
warship.
• Green PIN for Prepaid Cards (both INR and FTC)- Pin generation
requests can be raised for all Prepaid cards from any delivery channels, viz. PCMS
Customer Portal, SBI ATM & Branches.
• Generation of Debit card PIN at Branch through CBS-SSO- To
assist in Generation of Green PIN through Branch for illiterate customers, those who are
unable to generate the same using other channels.
• Acceptance of Domestic Rupay Card for Electronic Transfer at
Singapore POS devices.
• Dispatch status of a Debit card can be enquired through Bank's
IVR.
• Domestic Rupay cards can be accepted at Nepal ATMs/POS devices.
• Tap & Pay Transaction enabled on Jio Phone with tokenised
Debit Card.
• Green Pin facility is made available on Prepaid Cards for both
INR and FTC cards.
7. Internet Banking
Your Bank's Internet Banking provides a seamless online experience,
offering secure and diverse banking services to 977 lakh Retails Users and ~32 lakh
Corporate Users.
Many new services were rolled out for Retail customers like the
Introduction of login OTP, Positive Pay System - Registration Through Alternate Channels,
Relationship Managers details in INB for HNI Customers, Remittance to NEPAL via RINB,
Online PPF account opening, Online PPF Extension, Online Nomination for existing PPF
Accounts, Enhancing the International fund transfer FXOut Limit to eighteen lacs, Enabling
IMPS transactions for NRI customers in INB, Digilocker Integration and Photo and Signature
upload for NPS Registration.
Many new services were rolled out for Corporate customers in Corporate
Internet Banking, and YONO Business. Some of them are:
(i) enhancement of SARAL transaction limit from 10 lakhs to 25 lakhs,
(ii) online current account opening for all non-personal entities,
(iii) SME Gold Loan lead generation,
(iv) PABL-POS and Digital Local Short Credit facility for NTPC etc.
8. SBMOPS
State Bank Multi-options Payment System will facilitate collection
through various modes using the site to site integration with e-commerce and other
merchant entities. Total active direct Merchants integrated through MOPS are 542.
Significant changes implemented are Merchant UI Revamp (MOPS Page),
Sponsor Bank API eMandate; eMandate for repayment of EMIs and various integrations with
Govt entities and eCommerce merchants.
SBI UNI PAY (BBPS: A one-stop solution for all bill payments) - Your
Bank has developed a SBI Unipay application for Bill payments through BBPS services hosted
by NPCI, which has gone live in July 2021. In the SBI Unipay platform, your Bank provides
the facility of BBPS and Non- BBPS bill payments.
9. YONO Business
Your Bank's Yono Business offering for MSMEs, Corporate and Government
customers is designed to focus on three pillars of the digital transformation:
• One Bank One Platform, building an omnichannel digital platform
integrating CMP, Corporate INB, e-Trade, e-Forex and Supply Chain Finance under Single
Sign-On.
• Digital bank offering seamless end-to- end digitised customer
journeys.
• New Age Banking to future proof the technology priorities such
as API banking.
It digitally serves various Banking interface requirements of all types
of non-individual entities, right from a small proprietorship/ MSME to large multinational
corporates to Central and State Governments.
Amongst other facilities and features for non-individual customers, it
provides:
• Simplified and intuitive onboarding journey for new Digital
customers.
• The existing legacy documentation process has been replaced with
a new omnibus process, eliminating multiple visits to Branches. Digital onboarding for a
walk-in customer through the YONO Business Branch interface.
• Additional Product offering for existing customers.
• Corporate user management as an end-to-end digital journey to
Corporate Administrator for user management, ensuring security and convenience.
• Intuitive Dashboard made available to Corporates with features
such as Consolidated real-time account positions of A&L, Fund flow position, alerts
and notifications like LC due date, and instalments due date, amongst others.
• Reimagined import LC journey and Forex rate booking in less than
15-20 minutes without the requirement to visit the branch
D. Mobile Banking
Your Bank's Mobile Banking department is the largest alternate channel
in volumes. It handles various critical customer-facing mobile applications/Services like
UPI, Yono Lite SBI, Yono Business, SBI Quick, and SBI Secure OTP. The above apps enjoy an
excellent reputation among customers and are known for their ease of use and outstanding
user experience.
1. Unified Payments Interface (UPI): Unified Payments Interface (UPI)
is one of the flagship applications of your Bank that powers multiple bank accounts into a
single mobile application with an Interoperable facility, merging several banking
features, seamless fund routing and merchant payments by leveraging a single Payment
Platform (i.e. UPI). During F.Y. 2021-22, on 31st March 2022, your Bank has
recorded the successful processing of peak volume of UPI transactions, approximate 150
Million in a single day. This year, the following vital facilities were introduced for
customers through BHIM SBIPAY(UPI).
a. UPI Prepaid Voucher (PPV)
(eRs.UPI),
A DFS (GOI) initiative for Covid-19 vaccination, was launched by
Honorable PM on 02.08.2021. This functionality was also further extended to other schemes.
• SBI Credit Card application through SBI BHIM Pay for Android
users.
• BHIM SBI Pay Merchant App: Independent App for onboarding
merchants on the UPI platform for Android users.
• Per NPCI guidelines, per transaction limit enhancement with a
cap of '2 lakhs for a specific category of merchants.
• Unified Dispute & Issue Resolution (UDIR) for a reduction in
customer complaints and enhanced user experience.
b. Yono Lite:
Yono Lite has a total user base of 1.92 crore as of 31.03.2022.
Following developments have been done in Yono
Lite mobile banking app during the year:
• Uploading statement to Digilocker.
• SIM Based registrations - To enhance customer security and
prevent application misuse.
• If Remote Access applications are installed on a mobile device,
disallowing the Yono Lite app will obviate fraudsters' frauds.
• Biometric functionality enables the user to log in using
Fingerprint (Android & iOS) and FaceID (iOS).
• Purchase of Google Play Recharge Codes - customers can use these
codes for in-app purchases from Google Play Store.
• Purchase Gift Vouchers for online shopping.
c. SBI Quick:
SBI Quick has a total user base of 2.99 crore as of Mar 22. Following
developments have been done in SBI
Quick mobile banking app.
• MOD Balance through SBI Quick.
• Bank Holiday Calendar for 2022.
E. Executive Support System
1. Customer Relationship Management (CRM)
Your Bank's CRM Solution helps build and maintain solid and loyal
relationships with existing and prospective customers.
CRM Solution has customised Lead modules for all Business Units and
other critical departments, integrated with other sources such as OCAS, YONO, LOS, LLMS,
Bank's website, etc. It also has a sophisticated and advanced Module, i.e., CRM-CMS,
wherein customers' entire trail of previous complaints and other details are captured in
the application giving ease to users and customers for complaint lodgement, tracking and
resolution.
• The platform has been made available over Bank registered mobile
devices securely to enable Bank employees to perform certain services anywhere. A few
customer-centric projects initiated during the year were;
• Enrichment of Customer 360 for one view of Retail as well as
Corporate Customers/ product recommendations and CRM Leads through Analytics based outputs
• Creation of complaint management functionality for the handling
of YONO Interbank and YONO Cash unauthorised transactions in CRM- CMS
• Revamping of complaint module in CRM-CMS for routing and
autoescalation to Internal Ombudsman
• Redesigning of IVR and Agent journeys in consultation with
Contact Centre/ their vendors
• Functionality for assignment of OCAS Housing Loan leads to SSL
for specified centres (Mumbai Metro & Bengaluru circles)
• SME Lead generation through SMS/ Missed call channel (Ease 3.0)
• Sourcing of leads in CRM online through portals of some
automobile manufacturers
2. Data Warehouse
To align with Bank's vision, a state-of-the- art Data Architecture,
"Next-Gen Data Warehouse", is under implementation, facilitating ever-increasing
business data demands and regulatory reporting with a focus on Data Quality and Data
Integrity. This architecture will enable Value Creation (both top line and bottom line)
for the Bank through Advanced-Data Analytics while adhering to Governance, Security and
Compliance.
3. Data Governance
Being a data-driven Organisation, your Bank has taken various steps for
efficient management of Data with close partnership of Business and IT stakeholders. The
already established top-driven Data Governance framework, which is institutionalised up to
the operating level, is being leveraged to drive all the Data Governance initiatives to
ensure that the Data Asset of the Bank is future ready to support the Bank in its digital
transformation while complying with Regulatory guidelines. To further percolate the
message of "Data Trust" and for promoting Data Literacy across the Organisation,
your Bank is conducting many activities, among which is the celebration of "Data
Governance Day" on 1st June every year.
4. Analytics
Your Bank has built a solid and pioneering competency in Analytics, AI
and ML. It utilises these next-gen technologies to reimagine Customer Service, Marketing,
Risk Mitigation and Strategy. Some highlights of FY'22 in this area are:
Digital Lending: Two new End-to-End Digital Loan Journeys were
introduced, viz., Pre-approved Two-Wheeler Loan (SBI Easyride) and Pre-approved Business
Loan (PABL) for PoS customers of our subsidiary SBI PSPL. Loans worth ~ '21,935 Cr.
sanctioned digitally through Analytics-based products in FY2022.
Risk Mitigation: Tool to identify Related Party Transactions were built
to detect diversion of funds. Single Officer Branch Monitoring Solution rolled out in
pilot mode to alert when anomalies arise.
Operational efficiency: Cost-to-Income Ratio tool was launched to
prescribe branch-level changes in product mix and expenditures to maximise profits. Early
Warning System (EWS) model was integrated with Contact Centre to facilitate Outbound Calls
to reduce stress in loan accounts.
Responsible AI: Adopted a robust Data and Model Governance Framework in
line with global standards to ensure readiness for upcoming laws/regulations. Fairness,
Ethics, Accountability & Transparency (FEAT) document and Explainable AI were adopted
to ensure ethical model building.
Technology Related: Your Bank adopted next-gen capabilities such as
Deep Learning, Cloud-Based Services, Prescriptive Analytics, and Real-Time Analytics in
line with the board-ratified "Roadmap for Analytics." The pioneering Project
Shikhar Model combining risk, activation and spend analysis into a single, holistic model
was adopted, resulting in issuance of four million cards by your Bank's subsidiary SBI
Cards under this programme.
Accolades Received:
• Achieved a "High Maturity" Score in the global
"ITScore for Data & Analytics" Assessment of Gartner
• Awarded the "South Asia Award for Project Management"
by PMI for its Credit Card Cross-sell Model
• IDC Industry Innovation Award: Data Intelligence Award for
Pre-approved Business Loan Product
• IDC Industry Innovation Award: Green Tech/Sustainability Award
for Footfall Rationalization Model
F. Core and Special Projects
The significant developments rolled out in the current financial year
in the area of customer service during FY 2021-22 are as under: Hindi Printing:
Development has been rolled out to enable the Printing of Passbooks, Statement of accounts
etc., in Hindi language as per the customers' requirements.
Improvement in SMS delivery: A facility for SMS alerts in 13 languages
has been enabled. Customers may now register for SMS alerts in their preferred language,
viz. Assamese, English, Bengali, Gujarati, Hindi, Kannada, Maithali, Marathi, Malayalam,
Punjabi, Tamil, Telugu, Odia. Following initiatives have been taken to address delays in
SMS delivery.
• Multi-streaming of SMS outflow from CBS to Delivery Platform.
• Infrastructure upgraded for handling a higher volume of SMS.
• SMS generation and transmission processes in CBS were modified
to handle higher volumes.
1. Special Projects
Your Bank has initiated several special projects to ensure customer
convenience. A few of them are mentioned below CKYC for Non-Individual CIFs and CKYC for
FI-Legacy CIFs: Now, all types of CIFs, viz. Individual, Non-individual, and FI have been
covered under CKYC. Given the increased volume of digitisation, one more alternative
scanning solution (in addition to Signzy), CKYC Document Classification and Upload (CDCU),
an improved AI- based scanning solution, was launched on 03.08.2021.
PENSION: Functionality of Video Life Certificate launched on
01.11.2021, to facilitate pensioners in submitting Life Certificate through Video Calling
from their home.
Functionality for uploading Family pension- related documents through
the Pension application has been made available on 10.12.2021. Now, a family pensioner can
approach any branch to submit documents.
TRS: Your Bank provides Form16 through RINB & TRS (TaxCPC) Portals.
In Dec 2021, Bank successfully integrated with the Digilocker App of the Government of
India for delivering Form16 through the App, wherein Form 16 can be pulled in the
‘Issued Document' section of Digilocker.
GBSS - TIN(Tax Information Network) 2.0- Replacement for OLTAS: New
Module is rolled out in GBSS Application for Direct Tax Collection, having real-time
integration with TIN2.0 & PFMS and RBI for Settlement & Reporting.
GBSS - New FSLO Commission module for state government transaction
commission settlement: GBSS -FSLO module has been rolled out, which will facilitate major
head-wise submission of returns to RBI for a claim of commission for multiple State
Government modules in the GBSS application.
SBI FASTag -recharge through PhonePe: Integration of the FASTag
application with Bill Desk for recharge through Phone Pe has been completed. Phone Pe
Customers can now recharge their SBI FASTags directly from the application by entering
their vehicle number in the FASTag recharge option.
Easycollect: Easy collect application integration with Edelweiss Tokio
Life Insurance Co. Ltd has been rolled out. Edelweiss Tokio policyholders can now remit
renewal premium through any of the SBI branches by making use of the Easycollect
application GCC - Development of Application for new GCC terminal "Move 2500":
• GCC application has been modified for bringing compatibility
with newly introduced GCC terminal devices "Move 2500" and existing devices.
• Two Audit Variants of IAD, viz. Home Office Audit and Concurrent
Audit System for Foreign Offices are automated.
• HOA: The FOA Department at IAD conducted the Audit of Foreign
Offices (of the Bank) on 6th July 2021.
• CASFO: A "Web-Based Solution for Concurrent Audit for
Foreign Offices" was rolled out on 28th July 2021.
2. IT- Corporate and SME Loans
Your Bank has developed an in-house application to capture the entire
journey of Corporate and SME Loans through the Loan Life Cycle Management System (LLMS).
The entire life cycle of the credit process is automated, leading to standardisation of
the credit process, enhanced risk management and improved user experience and TAT. During
FY2022, the following significant new offerings were initiated under the LLMS:
Integration with National Portal: LLMS has been integrated with
National Portal, where leads for Credit Linked Government Schemes flow from National
Portal to LLMS. National Portal gives In-principle approval of "GO" based on the
scheme- specific Rule Engine Parameters set by respective banks on the National Portal. It
improves TAT for government-sponsored schemes and enhances transparency.
Integration with Contactless Lending Platform: LLMS has been integrated
with the Contactless Lending Platform (CLP), where SME customers apply through the CLP
website, and qualified leads are forwarded to LLMS. It saves time and ensures a shorter
TAT leading to better customer fulfilment.
3. IT Retail Loans (RL)
IT Retail Loans caters end-to-end credit processes, i.e. Pre-Sanction
and postsanction processes, through seven applications, i.e. LOS (PB), RLMS (Retail Loan
Management System), LOS (Agri), OCAS (Online Customer Acquisition System), RAAS (Retail
Asset Acquisition System), OPAS (Online Project Approval System) and LAMS (Loan Account
Management System).
Major rollouts in FY2021-22:
• Image-Based Processing for Home Loan Journey, which is uniform
for BPR & Non-BPR Branches
• SBI KAVACH Personal Loan to Covid patients for treatment.
• Top Up Gold Loan for existing gold Loan borrowers on security
value.
• Real-Time Xpress Credit, an online loan approval through the
YONO platform.
• Xpress Credit for Covid Warriors at concessional pricing.
• Integration with National Hunter for Auto Loans and Education
Loans. It helps fraud checking from the existing database of Hunter.
• Integration with National Portal for subsidy processing of Home
Loan and Education Loan
• Integration with CERSAI for online registration of immovable
security.
Loan Account Management System (LAMS): New application for loan
collection was launched in April 2021, where tele-callers and Bank officials record the
follow-up calls to delinquent account holders. During the current year, all bank staff,
Contact Centre and CSPs have recorded 2,54,89,155 follow ups in the application.
4. Customer Service
Your Bank has a robust online Complaint Management System (CMS), where
customers can lodge their complaints, feedback and suggestions online through Bank's
website www.bank.sbi. In addition to this, Contact Centres operate 24*7*365/366 in
different geographical areas, servicing Bank's customers in Hindi, English and ten major
regional languages.
To improve the quality of resolution of customer grievances, your Bank
has established Circle Complaints Resolution Centres (CCRC) in all Circles. Your Bank has
also established Circle Call Centres manned by its staff for handling any issue beyond the
purview of Bank's regular Contact Centres to ensure a better customer experience. Proper
and timely resolution of customer grievances is your Bank's high focus area. It is
conducting a Root Cause Analysis of major areas of complaint and is utilising the findings
for product and process improvement. It has also conducted a Customer Satisfaction Survey
and a Depositor Satisfaction Survey and is working towards enhancing the customer
experience based on the findings. Countrywide E-Town hall meetings at 523 centres were
conducted to connect with customers and feedback was collected from the customers on
products and processes.
To enhance the level of knowledge of the frontline staff and enhance
customer experience, your Bank has introduced a mass knowledge enhancement programme,
"Project Utkarsh", for its employees during the year. It has also introduced the
"Customer Service Index" for categorizing branches on the basis of the level of
customer service, which serves as a motivational factor for branches.
Your Bank is in the process of leveraging the CRM Tool to use analytics
and artificial intelligence. SBI believes that these digital tools and technology can
completely transform the customer experience in the days to come. It has onboarded two
easy to remember 8-digit Contact Centre Toll- Free numbers (18001234 and 18002100) for
ease of customers. It has also introduced a simplified IVR Menu (5*5) for seamless,
intuitive navigation to enhance customer experience. Your Bank has introduced six more
Registered Mobile Number based services (on a pilot basis in two telecom Circles) from the
Contact Centre (a total of 11 services), which have helped the clientele in these testing
times.
Your Bank is also driving the PSB Doorstep Banking services, which
provide ease of banking to customers. They can avail of several doorstep services, such as
Account Statements, Cash withdrawal facility, and Life Certificate submission, among
others, through the DSB Services.
G. Financial Inclusion and
Government Schemes (FI&GS)
During the COVID-19 period, the Kiosk Banking Channel played a very
important role in disbursement of government subsidies when movement to bank branches was
restricted. Under the 9th and 10th Instalment of PM Kisan Samman
Nidhi, SBI processed 2.45 crore and 2.50 crore transactions, respectively, as Destination
Bank in a single day on 09/08/2021 01/01/2022.
To enhance customer convenience and customer delight, the following new
facilities were introduced during the FY 2021-2022:
• Cheque Book request and Stop Cheque request at CSP outlet:
Facility to request for issuance of new cheque book and stop cheque request has been
enabled at CSP outlet.
• ATM Card Blocking at CSP outlet: The facility of ATM card
blocking at the CSP outlet has been enabled, giving customers one more avenue for ATM card
blocking.
GOI Social Security Schemes related initiatives: Following initiatives
for increasing coverage under social security schemes of GOI were rolled out:
• Revised Enrolment Forms to capture additional information about
customers and nominees at CSP outlets.
• Development of a floater screen in the Kiosk channel to prompt
uncovered customers to get PMJJBY and PMSBY cover, thus increasing coverage.
• SMS intimation to uncovered DBT/ DBTL Beneficiaries for getting
enrolled in PMJJBY/PMSBY/APY
Voice Prompt has been enabled in Kannada, Oriya, Gujarati, Marathi,
Bangla and Malayalam in addition to Hindi, English, Tamil and Telegu while performing
transactions at CSP outlets. It acts as a risk mitigant for illiterate/semi-literate
customers as they can hear the details of the transactions being performed in their
accounts.
H. Trade Finance (TF)
Your Bank caters to our customers' e2e Trade Finance requirements -
both Inland & Cross Border.
Eximbills Enterprise (EE): EE is the centralised technology platform
facilitating Trade Finance transactions, with average daily transactions ranging 15,000 -
16,000.
EDPMS/IDPMS reconciliation percentages are 96.88 and 95.41 by the end
of FY2022, respectively, which is the best ever achieved.
Customer Enterprise (CE/ e-Trade):
SBI e-Trade, also known as Customer Enterprise (CE), is a unique
digital platform. It is a One-Stop, centralised application, seamlessly integrated with
Eximbills Enterprise and Core Banking System to satisfy the needs of corporate customers
for their Domestic Trade Finance & International Trade Finance.
Centralised SWIFT Interface Gateway (CSIG): CSIG is a centralised
messaging system for cross border transactions over the SWIFT network. It is an integrated
web- enabled messaging software that runs centrally and is accessed by the interface
channels and branches, facilitating the electronic exchange of financial and nonfinancial
messages
Fintra TFS (Trade Finance Solution)
Project: As part of the digitalisation and redesigning of trade finance
processes, your Bank is centralising the processing of Trade Finance in two GTFCs (Global
Trade Finance Centres) at Kolkata and Hyderabad. The project was pilot launched in
November 2021 with the Inland LC module and is expected to be completed by FY 2022-23.
Three-way Reconciliation Utility for SWIFT Transactions (TRUST): This
application acts as an outward SWIFT message aggregator and reconciliation system having
appropriate control frameworks. It does a post-transaction check to ensure that underlying
accounting entries exist in the Bank's books of accounts for all outward SWIFT messages
sent. It also facilitates the daily independent Concurrent Audit for checking if the SWIFT
messages generated from the source applications are reconciled 100% for all financial and
non-financial messages.
3. Risk management
A. Risk Management Overview
Risk Management at your Bank includes risk identification, risk
assessment, risk measurement and risk mitigation, with its main objective being to
minimise the negative impact on profitability and capital.
Your Bank is exposed to various risks that are an inherent part of any
banking business. The major risks are Credit Risk, Market Risk, Liquidity Risk, and
Operational Risk, including IT Risk.
An independent Risk Governance Structure, in line with international
best practices, was put in place in the context of separation of duties and ensuring the
independence of risk measurement, monitoring and control functions. The various risks
across your Bank and the SBI Group are monitored and reviewed through the Executive Level
Committees and the Risk Management Committee of the Board (RMCB), which meets regularly.
Risk Management Committees at the operational and business unit levels are also in place.
1. Credit Risk Mitigation Measures:
Your Bank has put in place robust credit appraisal and risk management
frameworks for identifying, measuring, monitoring, and controlling the risks in credit
exposures. The industrial environment is scanned, researched, and analysed in a structured
manner by a dedicated team to decide its outlook, Credit Rating threshold based on outlook
and probability of default for industry and growth appetite for 38 identified industries
and sectors, which constitute close to 73% of your Bank's total advances (excluding retail
and agriculture). Events such as a change in Government policies or regulatory guidelines,
power shortage, and supply chain issues in these industries are monitored continuously,
and special studies for its implications are conducted, which are shared with the business
groups to enable them to make informed credit decisions. Considering the increasing
climate change risk, impact analysis on emission-intensive industries such as power,
hydrocarbon, iron and steel, construction, automobile and coal is conducted to align your
Bank's lending strategy towards low-carbon sectors. Furthermore, knowledge sharing
sessions are conducted to benefit the operating staff at various levels. Additionally, a
monthly and quarterly dashboards covering the top 15 industries are provided to business
units detailing the developments in these critical industries and sectors to keep them
updated on the latest information/ developments.
Your Bank has an industry concentration Limit Framework to ensure
against concentration risk, monitored quarterly. The framework has been made more robust
to capture business opportunities arising from Government initiatives like Performance
Linked Incentive (PLI) schemes and negative developments, including Environment, Social
and Governance (ESG) Risk.
Your Bank uses various Internal Credit Risk Assessment Models and
Scorecards for assessing borrower-wise Credit Risk. Models for internal credit ratings of
the borrowers were developed in-house. They are reviewed through cycles of comprehensive
validation and backtesting frameworks, including external validation/ review. Considering
the ESG risk, Bank has put in place an Environment, Social and Governance (ESG) rating
model, which rates large borrowers on various objective ESG criteria.
Your Bank also has a ‘Dynamic Review of Internal Rating'
Framework, which facilitates early identification of stress and triggers the appropriate
mitigation mechanisms.
Your Bank has a framework for Risk- Adjusted Return on Capital (RAROC),
and the Customer level RAROC calculation has also been digitised.
Further, behavioural models for monitoring and scoring retail borrower
performance have been developed and hosted on credit risk data mart.
Your Bank conducts stress tests every half-year on its Credit
Portfolio. Stress scenarios are regularly updated in line with RBI guidelines, industry
best practices and changes in macro-economic variables.
RBI has allowed your Bank to participate in the parallel run process
for Foundation Internal Ratings Based (FIRB) under the advanced approaches for credit
risk. The data under a similar run of FIRB is being submitted to RBI. Models for
estimation of Probability of Default (PD), Loss Given Default (LGD) and Exposure at
Default
(EAD) are hosted in a credit risk data mart for computation of IRB
capital.
The Bank carries out a Risk-Return Analysis of critical portfolios at
periodical intervals to assess the adequacy of return vis-a-vis the risk associated with
the exposures. The Bank has also initiated measures for objective and sustained assessment
of evolving risk of corporate exposures. In this regard, Bank has devised a framework for
Integrating a Dynamic Review of Internal Rating with Early Warning Signal Triggers and has
completed the IT implementation of the framework. The framework is presently being
experimented with real-life scenarios, and the Bank proposes a full- fledged roll-out in
FY2023.
2. Market Risk Mitigation Measures
Your Bank's Market Risk Management identifies and measures risks,
control measures, monitoring, and reporting systems. Market Risk is managed through a
well-defined Board-approved Investment Policy, Trading Policy and Market Risk Management
Policy, and Market Risk Limit Policy that caps risk in different trading desks or various
securities through trading risk limits/triggers for effective and judicious management of
investment funds. These risk measures include Position Limits, Gap Limits, tenor
restrictions, and sensitivity limits, namely, PV01, Modified Duration, Value-at-Risk (VaR)
Limit, Stop Loss Trigger Level, NOOP, Forex Daylight Limit, LMAT, UMAT and Options Greeks
are monitored on an end-of-day basis.
Value at Risk (VaR) is a tool used for monitoring risk in the Bank's
Trading Portfolio. The Enterprise-level VaR of your Bank is calculated and backtested
daily. The stressed VAR for Market Risk is also computed daily. This is supplemented by a
Board-approved Stress Testing Policy and framework that simulates various Market Risk
scenarios to measure stress losses and initiate remedial measures.
The Market Risk Capital Charge of your Bank is computed using the
Standardised Measurement Method (SMM), applying the regulatory factors.
Your Bank undertakes risk-adjusted performance analysis of its domestic
and overseas portfolios. It also analyses the credit rating migration of non-SLR bonds as
a tool for decision making.
Your Bank has initiated suitable measures to ensure a smooth transition
from LIBOR to Alternate Reference Rate (ARR). The relevant IT changes, tools for valuation
of models like RICS and curves for the pricing for the newly introduced Alternate
Reference Rates (ARR) have been incorporated into the system.
The newly introduced Bilateral Netting guidelines have been
incorporated into Bank's operating guidelines. Going forward, this may reduce the counter
party exposure amount and capital requirement for Counter party Credit Risk for the Bank.
Your Bank has a Model Risk Management Framework that enables Bank to
assess, measure, monitor and mitigate Model Risk.
3. Enterprise Risk
Mitigation Measures
Enterprise Risk Management aims to put a comprehensive framework to
manage and align risk with strategy at the whole Bank level. It encompasses global best
practices such as establishing a Risk Appetite Framework, Risk Culture Assessment
Framework, and Material Risk Assessment.
As part of your Bank's vision to transform the role of risk into a
strategic function, a Board-approved Enterprise Risk Management (ERM) Policy is in place.
The Risk Appetite Framework incorporates limits for significant risks
with monitoring parameters. To promote a strong risk culture in your Bank, a Risk Culture
Assessment Framework is being operationalised in a phased manner. As part of the Material
Risk Assessment Framework, periodic analysis of risk- based parameters for Credit Risk,
Market Risk, Operational Risk and Liquidity Risk, amongst others, is presented to the
Enterprise and Group Risk Management Committee (EGRMC) / Executive Committee of the
Central Board (ECCB).
Your Bank conducts a comprehensive Internal Capital Adequacy Assessment
Process (ICAAP) exercise on a yearly basis with respect to adequacy of Capital under
normal and stressed conditions at solo and group level.
In the ICAAP, besides the Pillar 1 risks, such as Credit Risk, Market
Risk and Operational Risk, Pillar 2 Risks, such as Liquidity Risk, Interest Rate Risk in
Banking Book (IRRBB), Concentration Risk and others are also assessed, and capital is
provided where required. New and emerging risks are identified and discussed in the ICAAP.
Your Bank is committed to reducing the carbon footprint of its
operations. Accordingly, the Bank has developed Climate Change Risk Management Policy
which will serve as a guidepost in supporting its journey towards a low carbon and
climate-resilient future.
Your Bank is committed to addressing climate change concerns by
identifying and managing climate-related risks and opportunities. The policy aims to
integrate climate-related risk (and opportunity) considerations within day-to-day
operations, lending portfolios and overall decision-making.
4. Group Risk Mitigation Measures:
Group Risk Management aims to establish standardised risk management
processes in group entities. Policies relating to Group Risk Management, Group Liquidity
and Contingency Funding Plan (CFP), maintaining arm's length requirements for intra group
transactions and exposures are in place. Regular monitoring of the consolidated prudential
exposures and group risk components is implemented. All group entities where SBI has 20%
or more stake and management control, including non-banking entities, carry out the ICAAP
exercise. A Group ICAAP Policy is in place to ensure uniformity.
5. Basel Implementation:
The RBI guidelines on Basel III capital regulations have been
implemented. Your Bank is adequately capitalised as per current requirements, including
maintaining the required level of Capital Conservation Buffer (CCB). Your Bank is
identified as D-SIB by the regulator, and it is necessary to keep additional Common Equity
Tier 1 (CET1) of 0.60% of RWAs from 1st April 2019.
B. Internal Control
Internal Audit (IA) in your Bank is an independent activity and has
sufficient standing and authority within your Bank. The IA Department, headed by a Deputy
Managing Director, works under the guidance and supervision of the Audit Committee of the
Board. Your Bank's IA function works in close coordination with the Risk Management and
Compliance Department to evaluate the effectiveness of controls, and assess compliance
with controls and adherence to internal processes and procedures. The IA function
undertakes a comprehensive risk-based audit of the operating units of your Bank, in line
with regulatory guidelines relating to Risk-Based Supervision.
Keeping pace with rapid digitalisation in your Bank, the IA function
has initiated technological interventions for providing enhanced efficiency and
effectiveness through system driven and analytics- based audits.
Few key initiatives include the following:
• Web-based, online Risk Focused Internal Audit (RFIA) for
assessing compliance with controls at a granular level
• Analytics-based, continuous assessment of compliable controls
through remote evaluation of enormous data
• System-driven, analytics-based offsite monitoring of
transactions
• Concurrent Audit of business units to ensure contemporaneous
scrutiny of compliances
• Early review of sanctions to assess the quality of loans of '1
crore and above
• Online self-audit by branches for selfassessment by branches and
vetting by controllers
As part of RFIA, IA Department conducts various audits, viz. Credit
Audit, Information Systems Audit, Cyber Security Audit, Home Office Audit (Audit of
foreign offices), Concurrent Audit, FEMA Audit, Audit of Outsourced Activities of your
Bank, Expenditure Audit and Compliance Audit.
Your Bank has created a new department viz., "Corporate Centre
Audit (CCA) Department" at Internal Audit Department (IAD) w.e.f. 01.04.2019 to
strengthen the overview of the Audit of its aggregate risk assessment processes. In
addition, it undertakes various audits, such as Thematic Audit, Validation Audit, Veracity
Check in compliance of the RBI Directions & Regulatory guidelines, and other
requirements emanating from various Business Units and departments at Corporate Centre.
The CCA Department is also engaged in the validation of RBI-Tranche-III-DCTs (Data
Collection Tranches), Risk Assessment Report (RAR) and Risk Mitigation Plan (RMP)
observations.
Branch Audit: The IA Department undertakes a comprehensive risk-based
audit of the operating units of your Bank, in line with regulatory guidelines relating to
Risk-Based Supervision. The domestic branches are broadly segregated into four groups
(Group I Special, Group I, Group II and Group III) based on business profile and advances
exposures. Your Bank has initiated a system driven process for identifying branches for
Audit, whereby analytical algorithms are deployed to identify units displaying
significantly different behavioural patterns. This enables your Bank to step in with a
prioritised audit to identify the causative factors at these outlier branches and flag the
underlying problem areas for early intervention. During FY2022, the IA Department has
completed RFIA of 10,614 units of Domestic Branches & Central Processing Centres
(CPCs) as of 31st March 2022. Further, Evidence- Based Compliance Testing
(EBCT) was completed in 3,260 branches identified under Trigger Based Audit (TBA).
Credit Audit: Credit Audit is an integral part of the ‘Risk
Focused Internal Audit' system. It aims to identify risks inherent to the businesses of
the counterparty and measure the effectiveness of the control systems for monitoring
inherent risks. It also suggests remedial measures for controlling credit risks for the
high- value loan portfolios. ‘Credit Audit Division' (CAD) provides assurance to the
‘Management' and the ‘Board' on the quality of the Bank's credit portfolio. It
recommends corrective actions for improving credit quality, administration, and skills for
the staff handling large advances with exposures of above '20 crores annually.
Early Review of Sanction: A review of all eligible sanctioned proposals
with total domestic credit exposure of above '1 crore (exposure of US$ 1 mio & above
for IBG) is carried out under ‘Early Review of Sanctions' (ERS). ERS captures the
critical risks in sanctioned proposals at an early stage and apprises the Business Units
of such critical risks for mitigation thereof. ERS facilitates in improving the quality of
sourcing, pre-sanction and sanction processes. ERS activity is centralised, and proposals
are reviewed by in-house officers/Chartered Accountants. The entire ERS process is system
driven and done through the Loan Lifecycle Management Solution (LLMS).
FEMA Audit: The branches that are authorised to deal (Authorised
Dealers) in Foreign Currency transactions, including Trade Finance Centralised Processing
Cells - TFCPCs, are subjected to FEMA audit. All branches in CAG/CCG/TFCPCs and
"A" & "B" category branches not linked to TFCPCs are audited once
a year. Around 20% of branches linked to TFCPC are also audited along with the linked
TFCPC, depending on the risk perception volume of Forex operations of
the linked branches. 452 such branches and units were subjected to FEMA Audit as of 31st
March 2022.
Information Systems Audit, Cyber Security Audit, Information Systems
Concurrent Audit and Audit of IT Outsourced Activities: Your Bank's branches are subjected
to Information System audits ("IS Audits") to assess the IT-related risks as
part of the RFIA of the branch(es). IS Audit of Centralised IT / Corporate Centre
establishments is also carried out by a team of qualified officials, including IS auditors
appointed through lateral recruitment.
During the FY2022, the following exercises were carried out up to 31st
March 2022:
• Information Systems Audit of 116 Auditee Units
• Cyber Security Audit has been conducted in Q4 for FY2022 as per
the Cyber Security Policy of your Bank.
• Information Systems Concurrent Audit of 23 GITC Departments of
your Bank every month.
• Audit of 419 IT Outsourced Activities.
Foreign Offices Audit: Foreign Offices are subjected to Home Office
Audit in addition to Internal Audit conducted locally at the respective centres by reputed
Internal Audit Firms and Local Based Officers under the oversight of the Internal Audit
Department. Home Office Audit due at 34 Foreign Offices and Management Audit due at 4
Representative Offices, 5 Subsidiaries and 5 Regional / Country Head Offices during FY
2021-22, are deferred to FY 2022-23 due to restrictions imposed on account of COVID-19
pandemic. However, these offices were subjected to Internal Audit by reputed Internal
Audit Firms as per approved periodicity.
Concurrent Audit System (CAS):
Concurrent Audit System in your Bank covers advances and other risk
exposures as prescribed by the Regulatory Authority. Branches are categorised as Extremely
High Risk; Very High Risk; High Risk; Medium Risk; and Low Risk based on the Risk
Categorisation model developed by the Bank according to the instructions from RBI. All
Extremely High Risk, Very High Risk and High-Risk branches are covered under Concurrent
Audit. Concurrent Auditors are also placed at all Centralised Processing Centres to ensure
monitoring of transactions contemporaneous with their occurrence. Concurrent Auditors also
cover Currency Chest Branches, Treasury Operations, and other Special Outfits. Your Bank
has covered 3,137 Branches / Auditee Units under Concurrent Audit during FY 202122 as of
31st March 2022 by deploying 1,814 Chartered Accountant Firms, 467 Retired
experienced Bank Officers and 28 Regular Officers.
Offsite Transaction Monitoring System (OTMS): For the purpose of
monitoring the transactions offsite, alerts are generated and flagged to the business
units for corrective actions. Presently, there are 61 scenarios embedded in the system
against which the transactions are scrubbed at regular intervals, wherein inconsistent
transactions are flagged by the system for affirmation of the related compliances. The
scenarios are periodically reviewed and enlarged, depending upon the need and specific
triggers.
Legal Audit: Legal Audit in your Bank covers scrutiny of the loans and
security- related documents of loans amounting to '5 crore and above. The legal Audit is a
control function, carried out through a panel of advocates, and 10% of such accounts are
examined by the internal auditors on a sample basis to ensure that there are no
shortcomings in the documents or creation of security in favour of your Bank. The legal
Audit Process was automated in Loan Life Cycle Management System (LLMS) w.e.f. 01.07.2021.
As of 31st March 2022, a Legal audit was carried out for 14,907 accounts.
Audit of Non-IT Outsourced Activities:
Your Bank recognises the need of service providers engaged by your Bank
to be as compliant with the legal and regulatory requirements as your Bank itself.
Therefore, the Audit of Outsourced activities is conducted at regular intervals to assure
that adequate systems and procedures are in place to mitigate legal, financial, and
reputational risks arising from the outsourced activities.
Audit of outsourced activities in your Bank covers audits of vendors
(NonIT) engaged in providing ATM services, Corporate Business Correspondents (BC),
Individual Business Correspondents (BCs) and Customer Service Points (CSPs), Recovery and
Resolution agents, Cash Management Services, Cheque Book Printing, Collateral Management,
Marketing of Loan proposals, Registrar and Transfer Agents, Document Archival Centre, and
Cash Efficiency Project amongst others. During FY2022, your Bank has completed the Audit
of 36,196 CSPs as per the audit plan for FY2022. With respect to other outsourced
activities (other than CSPs) audit of 639 vendors has been completed as of 31st
March 2022.
RFIA of Corporate Centre Departments:
CC Audit Department assesses the aggregate risk and maintains oversight
of risk residing at the macro level. The risk assessment covers inherent risks, control
risks, residual risks and gaps in governance and oversight. It also assesses the degree of
compliance with regulatory and statutory requirements. Audit reports provide a fair and
reasonable assurance to the Top Management and Board, on the direction and trend of
aggregate risk in your Bank.
Management Audit: The core function of Management Audit is to assess
the effectiveness of control and governance process at the apex level in accomplishing
overall corporate objectives. Management Audit covers Circle's Local Head Offices,
Regional Rural Banks sponsored by your Bank and select Corporate Centre departments. In
its endeavour to enhance the effectiveness of Management Audit, in the current financial
year 2021-22, your Bank has reviewed the audit process by redefining rating methodologies,
risk weightages and parameters used for Management Audit.
C. Compliance Risk Management
Regulatory and Statutory compliances are being accorded the highest
priority. Your Bank has, over the years, developed necessary tools to track compliance
risks and ensure timely remediation. Compliance Policy and Group Compliance Policy are
reviewed annually to meet the Regulators' expectations.
Compliance Risk Management Committee comprising Senior Executives from
business verticals and support functions, maintains oversight on all compliance- related
issues. The Committee meets regularly and extends necessary guidance to all the internal
stakeholders to ensure regulatory compliance. The Compliance function also reviews all
products and policies to ensure adherence to Regulatory guidelines.
To take the compliance culture up to the grassroots level, regular
workshops and interactions are held across the Bank. Compliance testing is also
broad-based by involving Regional Offices pan India for their assessment and timely
remediation of risks arising out of non-compliance.
To exhibit its zero-tolerance to noncompliance, your Bank has
introduced metrics to check the compliance level at branches to monitor and counsel the
non-compliant branches and reward the compliant ones. Bank has also initiated steps to
meet the regulatory expectations on Data Protection.
D. KYC / AML-CFT Measures
Your Bank has been taking comprehensive steps to implement KYC norms/
guidelines across the Bank. Bank has a Board approved Policy on Know Your Customer (KYC)
Standards, Anti-Money Laundering (AML) and Combating of Financing of Terrorism (CFT)
Measures, in line with the extant RBI Master Direction on KYC.
The Policy incorporates Bank's approach to KYC, AML and CFT issues. The
Policy contains your Bank's framework for Customer Acceptance, Risk Management, Customer
Identification and Monitoring of Transactions. Bank has taken steps to implement the
Prevention of MoneyLaundering Act, 2002 and the Prevention of Money-Laundering
(Maintenance of Records) Rules, 2005, as amended from time to time.
Your Bank has been carrying out the ‘Money Laundering (ML) and
Terrorist Financing (TF) Risk Assessment' exercise periodically to identify, assess and
take adequate measures to mitigate its money laundering and terrorist financing risk for
clients, countries or geographic areas, products, services, transactions, or delivery
channels, etc.
Your Bank has put in place a robust system containing a combination of
manual and system enabled methodology to ensure KYC compliance. No account is opened in an
anonymous or fictitious/benami name or where the Branch/Business unit cannot apply
appropriate Customer Due Diligence (CDD) measures. Bank does not open accounts for
transacting in or settling transactions of virtual currencies. However, while implementing
the Policy, Bank takes care that it does not result in denial of banking services to those
financially or socially disadvantaged.
Your Bank has launched a Video KYC facility to facilitate contactless
customer onboarding. New customers can open fully functional accounts using this process
without visiting any Branch.
AML CFT Deptt of the Bank ensures ongoing due diligence through
transaction monitoring. Bank follows a risk-based approach wherein Customers are
categorized as low, medium and high risk based on the assessment and risk perception. Bank
takes care of filing obligatory reports to Financial Intelligence Unit- India (FIU-IND).
Timely notifications are also filed on priority in cases of accounts suspected of having
terrorist links.
Your Bank conducts special Audits on KYC to ensure compliance with KYC/
AML/CFT matters.
Several initiatives are put in place to bring greater awareness amongst
the staff. Training personnel in KYC/AML/ CFT areas is an ongoing process in our Bank.
Employee training programmes are regularly conducted to adequately train staff in
KYC/AML/CFT matters.
AML-CFT Day is being observed on 2nd November every year
wherein pledge is taken on that day at all branches/ processing centres and Administrative
Offices. Similarly, 1st August is observed as KYC Compliance and Fraud
Prevention Day.
E. Insurance
Your Bank is procuring insurance policies, covering your Bank's assets
and other risks. Insurance coverage includes cash and valuables, Properties of the Bank,
Fraudulent transactions under Debit Card/ Electronic banking, Cyber Risk, amongst others.
F. Premises
SBI has always incorporated environmental management practices in its
functioning as a responsible corporate. Your Bank has initiated varied initiatives with an
intent and commitment to a greener world, much in alignment with national priorities.
We are happy to share that we have achieved a milestone for getting
green building ratings of IGBC to our nine prestigious buildings during this financial
year, making it a total of 18.
We are also happy to shift our Corporate Office, State Bank Bhavan, to
100% Green Energy, through which we can offset around 52 tonnes of Carbon Dioxide every
year. This is one step toward our future goal to become Carbon Neutral by 2030.
4. Official Language
Leveraging technology in rendering Banking Services in Hindi and other
Indian Languages
SBI is committed to propagating the use of the Official Language in the
Bank through multiple channels set up by the Bank. Your Bank has taken innovative steps to
propagate the use of Official Language in reaching out to customers and has earned many
laurels for the organization.
Your Bank is committed to rendering banking services in Hindi and other
Indian languages. It has a comprehensive and well-designed digital platform to suit the
expectations of Digital India. Various products are being made available in Hindi and
different regional languages.
Because of technological up-gradation, a new and better version of the
Hindi Passbook and Account Statement Printing has been made available in Hindi in core
banking. This facility of issuing Passbook and account statements etc., in Hindi, has been
implemented all over India.
SMS alerts of transactions in CBS to the Bank?s customers extended
to 13 Indian languages: Oriya, Gujarati, Kannada,
Tamil, Assamese, Punjabi, Bengali, Maithili, Marathi, Malayalam and
Telugu in addition to Hindi and English. This will enable about 90% of the country's
population to be covered with SMS alerts in their mother tongue.
Yono Lite app for mobile banking has been made available in 12 Indian
languages, and the Yono Krishi app is now available in 10 Indian languages, including
Hindi, Tamil, Telugu and Malayalam. Our Banking website onlinesbi is available in 14
Indian languages. SBI Quick app has been made available in 14 Indian languages.
The Bank's corporate website bank.sbi is available in Hindi and
English.
Our call centres are currently providing solutions to customers in 13
languages, with more than 80 per cent of the questions being responded to in Indian
languages.
Celebration of Hindi fortnight at the national level and World Hindi
Day at the international level
To popularize the use of Hindi among the staff members of your Bank in
India, Hindi fortnight was organized from 14th to 30th September
2021 at the national level. World Hindi Day was celebrated on 10th January 2022
in the Branches abroad, wherein various Hindi programs and competitions were held to
spread the usage of Rajbhasha in the Bank.
Government of India?s Rajbhasha Kirti Puraskar for Best
implementation of Official Language among the Public Sector Banks Bank has been awarded
the Government of India's coveted Kirti Puraskar for Best implementation of Rajbhasha
among Public Sector Banks for the year 2020-21.
The award was given by the Honorable Union Minister for Home Shri Amit
Shah.
Rajbhasha Ratna & Rajbhasha Yodha Award by "Ashirvaad", a
renowned Literary and Cultural Organization.
For propagating the usage of Official Language Hindi, the Rajbhasha
Ratna award was conferred by "Ashirvaad", a renowned Literary and Cultural
Organization to DMD (HR) & CDO Shri Om Prakash Mishra. The award was given by the
Honorable Governor of Maharashtra, Shri Bhagat Singh Koshyari. Rajbhasha Yodha award was
conferred on your General Manager (Rajbhasha & Corporate Services), Shri Dinesh
Pruthi.
Awards from the Town Official Language Implementation Committee to SBI.
The Town Official Language Implementation Committee, constituted under
the Chairmanship of the State Bank of India, Bhubaneswar, Rajkot and Jabalpur, were
awarded first prize for their outstanding performance in implementing official language
policy in their respective towns. Similarly, your Administrative Offices at Nizamabad and
Surat bagged 2nd Prize for implementation of Rajbhasha, while Administrative
Office Patna was awarded the Third Prize for best implementation.
5. Marketing and Communications
The Marketing and Communications (M&C) Department is responsible
for Bank's branding, product marketing, and corporate communications initiatives. The
Department adopts a contemporary marketing approach to give impetus to the digital
initiatives and connect with young India. It endeavours to develop and implement
integrated marketing strategies to address the business challenges of different divisions
of the Bank, including Indian and overseas operations. This Department comprises domain
skilled professionals and specialists drawn from various relevant fields - media,
marketing communications, digital marketing, advertising, and public relations.
Throughout the Pandemic, even though the branches and ATMs were
functioning uninterruptedly, the focus of the M&C department was to promote your
Bank's digital initiatives for the safety of customers and staff. Bank undertook various
initiatives to increase the download and consistent use of SBI's digital banking channels
like YONO, SBI BHIM Pay, Yono Lite, etc. The M&C department engaged with Bank's
customers to increase the awareness of alternate channels and their safe usage. Bank also
undertook various brand/marketing initiatives like "I am the I in SBI",
"Har Tyohar Shubh Shuruat", "Easy-Ride", etc. and campaigns such as
#HumSabkaSBI, #BankerToEveryIndian, #SbiAapkeSaath etc. on various social media platforms
for creating customer awareness about Bank's products and services.
The M&C team launched major marketing campaigns for products such
as Home Loans, Personal Loans, Current Accounts, NRI Services, and Digital Products, among
others. The Department also initiated one of its kind, Media-outreach programme for the
customers and took the products and services of the Bank to every corner of the Country.
Various media channels such as print, social media, digital platforms, websites, and ATMs,
among others, were used for the campaigns. The Department also promoted Bank's several
sustainability initiatives and CSR activities through various media platforms.
Along with the other marketing initiatives, Bank plans to further
promote its various digital initiatives and its flagship product YONO. The thrust of the
M&C Department is to constantly redefine and reinvent all its marketing initiatives to
stay relevant and act as a change catalyst for State Bank of India to retain the glory of
being one of the most vibrant and trusted brands
6. Vigilance Mechanism
There are three aspects to the vigilance function- Preventive, Punitive
and Participative. Based on past experiences/incidences, system/process improvements are
being undertaken continuously by leveraging technology, and the guidelines of your Bank
are being streamlined as a preventive vigilance measure.
During this year Vigilance, Awareness Week was observed from 25th
October 2021 to 1st November 2021, with the theme "Independent India @ 75:
Self Reliance with Integrity; mJrTT YUrT @ 75: mTrqfTOT me DTrCTfvTYTjcn' I" As a
part of an observance of Vigilance Awareness Week, "Integrity Pledge" has been
administered to all staff members. All channels of your Bank, such as SBI Times, ATMs,
CDMs, Internet Banking, Facebook, Twitter, Instagram, and LinkedIn, are used to create
awareness among employees and the public on the theme of Vigilance Awareness Week (VAW).
During the VAW, we hosted a conference of CVC with the Top Management
of your Bank. The Commission was presented with the elaborate Preventive Vigilance
measures your Bank took. The Chief Vigilance Commissioner also launched the Vigilance
Bulletin 2021. Commission also appreciated various efforts undertaken by your Bank.
We also hosted a meeting of the Department of Financial Services (DFS),
Central Vigilance Commission (CVC) and CMDs of all Public Sector Banks on 01st
October 2021 to discuss the staff accountability framework and ABBFF Committee.
The Commission, in consultation with RBI and DFS, has extended the
scope of ABBFF to cover all fraud cases involving an amount of Rs.3.00 crores and above
and examine the role of all levels of officials / Whole Time Directors (including
exofficials / ex-WTDs) in all Public Sector Banks, with cut off date of 06.01.2022.
Earlier, only fraud cases above Rs.50.00 crores were referred to ABBFF.
The DFS, in consultation with CVC, also issued a new framework of staff
accountability examination in all the cases up to Rs.50.00 crores vide their letter dated
29.10.2021. DFS also advised all banks to frame the staff accountability policy within
this framework, effective from 01.04.2022.
The Vigilance Department has conducted 609 preventive vigilance
programs, 122 EO/PO/IO training, and 42 Investigation officers training, covering 10,250
officers. In addition to conducting suo- moto investigations in complaint prone branches
and branches where the RFIA Auditor observed serious irregularities, we have started
conducting Suo-moto investigations in High-Risk & Very High- Risk branches identified
by AI/ML engine to ensure and improve the preventive vigilance measures.
1338 cases have been closed during FY2022, compared to 1029 cases
during the previous year, FY2021, which is an impressive improvement of case closures over
the last year by 23%.
7. Asset and Liability Management
Efficient Management of Assets and Liabilities (ALM) is vital for
banks' sustainable and qualitative growth. ALM of the Bank aims to strengthen the Balance
Sheet by pro-actively reviewing the market dynamics, capturing the signals emanating
therefrom and ensuring value creation while conforming to the regulatory requirements.
As part of sound Risk Management practices, your Bank has constantly
reviewed its Internal Policies on ‘Deposits', ‘Asset and Liability Management',
‘Stress Test on Liquidity and Interest Rate Risks', and ‘Contingency Funding
Plan' and efficiently adapted to changes in market conditions. Bank has been carrying out
Stress Tests and Reverse Stress Tests to cover the eventual risk that may crop up as a
worst-case scenario.
Studies are conducted at regular intervals to assess the behavioural
pattern of customers (embedded options available to customers) to impart proper treatment
to the non-contractual assets & liabilities items while evaluating liquidity position.
Behavioural analysis is carried out at half-yearly intervals to ensure accurate
positioning of outflows/inflows in liquidity and interest rate sensitivity statements that
may arise due to Off-Balance Sheet (OBS) exposures and the impact of probable loan losses.
The prevailing assumptions relating to non-contractual assets & liabilities items are
periodically reviewed, back-tested and updated based on the outcomes of the latest
studies.
The stock of High-Quality Liquid Assets (HQLA) and cash outflows are
effectively monitored daily under a dynamic market environment to ensure the maintenance
of LCR as prescribed by the Regulator and Bank's internal policy benchmarks. Your Bank has
proactively implemented the NSFR guidelines of RBI, measuring the long-term resilience of
the Bank in terms of liquidity, much before the submission (Regulatory) mandate.
Your Bank identifies the inherent risks associated with changing
interest rates on its Balance Sheet (On/Off) exposures from short-term and long-term
perspectives. For this purpose, the impact on Earnings at Risk (EaR) and Market Value of
Equity (MVE) is assessed with pre-defined tolerance limits, enabling the Management to
initiate appropriate preventive steps in a likely scenario of erosion NII / Net Worth.
To encourage branches to garner stable funds and assess their
profitability based on the cost of funds, a matched maturity- based Funds Transfer Pricing
was adopted by your Bank. The Bank constantly strives to ensure an adequate monetary
policy transmission through its benchmark lending rates.
The Asset Liability Management Committee (ALCO) of the Bank monitors
and manages Liquidity and Interest Rate Risks by modulating the asset-liability mix in the
Balance Sheet and recalibrating the pricing of liabilities & assets from time to time.
ALCO, among other areas, reviews the Interest Rate scenarios, the pattern of growth of
liability products, credit growth, competitive advantages, evolving liquidity conditions,
adherence to the regulatory prescriptions etc., regularly.
With automation of Regulatory Reports/ Returns pertaining to ALM, your
Bank is well-positioned in monitoring and compliance regarding Liquidity and Interest Rate
Risk Management.
8. Ethics & Business Conduct
The Ethics and Business Conduct department of your Bank is responsible
for carrying out initiatives to strengthen and integrate ethics and morality in all the
operational areas of the Bank. With this objective, the Department has carried out a host
of activities in the previous financial year.
FY2022, like the previous year, was marked by disruptions caused by the
second and third wave of COVID. However, by constant integration of the digital platforms
in all operations, it was ensured that the entire gamut of activities of the Department
continued unaffected and uninterrupted. In addition to the existing initiatives, a new
email broadcast series was started based on the anecdotes of the exemplary ethical
standards demonstrated by distinguishing personalities. Your Bank has framed Conflict of
Interest Policy to mitigate ethical risks and sensitize the staff where individual
interest is unduly affecting the business dealings. To submit disclosures to SEBI under
the essential Indicators, i.e., Business Responsibility & Sustainability Reporting
(BRSR), your Bank has formulated Anti-Bribery & Anti Corruption Policy which explains
the relevant principles and rules for preventing bribery and corruption and safeguarding
the larger organizational interests.
To further deepen the roots of ethics and to gauge the level of
awareness among the employees related to risk and ethics culture of the Bank, a survey was
conducted, in which over 90% of the employees participated. The survey shows that the vast
majority of the employees are aware of the risk and ethical culture of the Bank.
Your Bank is highly committed to nurture an inclusive, secure and safe
environment for its women employees. Your Bank has a dedicated Garima (POSH) framework,
which covers the entire process cycle comprising awareness, escalation and empowerment on
matters relating to gender sensitivity and sexual harassment. The Department is the nodal
point for overseeing the complaints under Garima POSH of the entire Bank, including timely
handling of appeals by the aggrieved parties. A mentoring program for newly joined women
employees was launched during the year to ensure their smooth transition towards Bank's
culture imbibing ethics and values. To create awareness among employees related to Garima
POSH, comprehensive handbooks were released for their quick and easy reference. Amid Covid
disruptions, your Bank has regularly conducted webinars on Ethics & Garima POSH for
the concerned target groups to spread awareness and inculcate the Values of the Bank.
In the area of Discipline Management, your Bank has framed a
comprehensive Staff Accountability Policy to promote a healthy environment of compliance
with the laid down rules, regulations, norms and systems & procedures in order to
safeguard the interest of the Bank and its stakeholders. The Staff Accountability Policy
is aimed to protect the employees for their bonafide actions and at the same time to make
them accountable for any wrongdoing or any inaction on their part. The Policy has also
been reviewed subsequently to align it with the Staff Accountability Framework issued by
DFS, GOI. The Ethics and Business Conduct Department of your Bank is not stopping at this
point; the journey is perennial and continuously strives to demonstrate ethics of the
highest standard through various efforts.
9. Corporate Social Responsibility
CSR is one of the activities through which your Bank plays the role of
a responsible corporate citizen. The CSR at SBI aims to integrate economic, environmental
and social objectives to implement national priorities for social development. The aim of
CSR policy in your Bank is "To participate in activities that benefit community
development, social responsibility and environmental sustainability, and reach out to
socially & economically disadvantaged sections of society."
Most CSR activities are undertaken in rural and urban slums, where the
downtrodden people live and need help in medical, education, food, and shelter, among
others.
The donations are not made based on caste, creed, religion and region.
Donations are made to the underprivileged sections of the society, who are financially
weak and need support from the donors for their sustenance. The beneficiaries of your Bank
include needy people from all sections of the community. Your Bank supports NGOs/Trusts,
which work to uplift these sections of society. Its focus is on improving the
socio-economic wellbeing of the society, particularly of the less fortunate and
underprivileged members and enabling them to live up to the potential that they all
possess.
CSR spend during FY 2022
| 1 Total CSR Budget for FY 2022 |
'204.10 Cr. |
| 2 Allocation to SBI Foundation |
'102.56 Cr. |
| 3 CSR expenditure by your Bank through Circles &
Departments |
'101.54 Cr. |
Banks Fight against COVID
Your Bank has undertaken various activities to fight against Covid-19
through SBI Foundation. SBI Foundation allocated an amount of '71 Crore. Initiatives
include:
Short-term interventions:
• Distribution of food & ration kits, healthcare equipment
like PPEs, masks, and oximeters.
• Raising awareness
• Vaccination drives
• Creating COVID care centres
Operational mid-term interventions:
• Installation of oxygen plants
• Upgradation of healthcare infrastructure
• Mobile & community testing, among others.
Innovative long-term interventions
• Genome sequencing
• Capacity building of healthcare workers
• Indigenously designed healthcare solutions & technology,
among others.
Supporting Women Empowerment Activities
• Setting up Bharosa Centre at Karimnagar, Telangana, to provide
integrated support and assistance to women and children affected by violence, both in
private and public spaces, under one roof.
• Supported Sachhi Saheli, New Delhi, for sensitizing menstruating
women and girls from slum areas in Delhi to deal with menstruation in a healthy, hygienic,
and effective manner.
• Supported Samaj Shakti Society, Tripura, for procurement of
sewing machines and other tailoring equipment.
• Supported Silver Lining society, New Delhi, towards procuring
infrastructure, which helps enhance the quality of service provided to blind girl
beneficiaries residing and getting educated at their NGO.
• Provided nutritional kits and medical items to the needy women
and children of most marginalized households in Dharmashala, Rait and Nagrota blocks of
Kangra District, Himachal Pradesh.
Supporting Health Care
• Supported various trusts like Dhanvantari Charitable Hospital-
Bengaluru, Shanukhapriya Trust- Mumbai, Shanmukhananda Trust- Mumbai, Prasanthi medical
Services and research Foundation-Ahmedabad, in procurement of different medical
instruments required for the hospitals and health centres run by them.
• Supported Govel Trust, Chennai, for the purchase of Medical
Equipment. Govel Trust runs Aravind Eye Hospitals, which provides large volume, high
quality, and affordable eye care.
• Supported Sparsh Hospice, Centre of Palliative Care, Hyderabad.
The donation is utilized for Palliative Care for terminally ill cancer patients for whom
treatment to cure is no longer effective.
• Your Bank has supported various Trust Hospitals by donating
ambulances,
5 setting up Operation Theatre, ICU rooms, and donating medical
equipment.
Supporting Education
• Supported Tata Steel Foundation -
t Mumbai in setting up digital-based
classrooms for children in remote and 5 tribal areas of
Odisha and Jharkhand.
y • Donated to the needy students in Thiruvananthapuram
under the scheme "Vidyakiranam".
? • Supported Matrubhan Society,
^ Bhubaneshwar in budling mobile science and maths- lab.
• Support for setting up Smart Classrooms in various Kasturba
, Schools in Uttar Pradesh.
3 • In addition to the above, your Bank has undertaken various
other activities, including donating vehicles, computers, and school infrastructure.
f Swachh Bharat, Environment r Protection and Sanitation
• Supported procurement and installation of High Mast Solar Lights
in the 27 Gram Panchayats of Khurda District, Orissa.
• Supported World Wild Fund (WWF) for nature, Hyderabad for
setting up solar- based deep-well pumping systems to provide water to Wildlife in deep
5 Nallamalla Forest (Nagarjuna Sagar Srisailam Tiger Reserve).
In addition to the above, your Bank has undertaken various other
activities, including installing solar power units, among others.
Welfare activities for the Persons with Disabilities
l Various initiatives have been undertaken to uplift persons with
disabilities through multiple organizations such as Lakshya Sadhana Society, Hyderabad
Rajasthan Mahila Kalyan Mandal, Ajmer, Astha - 5 Delhi, Helpers of Handicapped - Kolhapur,
5 Assisted Living for Autistic Adults (ALFAA)-
r Bengaluru among others.
Tribal Welfare
Your Bank undertook various measures to benefit Tribal people through
Societies like NEDAN Foundation, Kokrajhar and Buddhist Culture Society, Itanagar.
Animal Welfare
Your Bank has adopted tigers and other endangered animals for their
welfare for one year through various Zoological parks and animal shelters.
Supporting Sports and Athletes
Supported Inspire Institute of Sport, Vijayanagar, Karnataka, for
procurement of Sports and fitness equipment. Donated to "Project Mumbai" for
procuring specially designed wheelchairs for the differently- abled sportspersons to
enable them to participate in wheelchair basketball competitions.
Employee Volunteer - SBI Children?s Welfare Fund
With the concept of "Charity begins at home", Your Bank
established a Trust in 1983 -SBI Children's Welfare Fund, an initiative by the staff
members. The Trust was created by the voluntary contribution from the Staff of your Bank
towards the betterment of the underprivileged and Orphan children. The interest earned on
the corpus of the fund is utilized to extend grants to Institutions engaged in the welfare
of disadvantaged children, viz. orphans, differently-abled, needy and deprived, among
others.
I. Sustainability at SBI
"Sustainability" has been identified as one of your Bank's
Core values. Your Bank has been performing on the Sustainability front through a
multi-fold approach, viz. management of social and environmental risks in strategic
decision making and development of innovative products and services. Your Bank has
entrusted the Deputy Managing Director (HR) and Corporate Development Officer to oversee
the Bank's overall sustainability vision.
To enhance Sustainability practices in your Bank in a formalized
manner, a Board-approved "Sustainability and Business Responsibility (BR)
Policy" has been put in place. As per Global Reporting
Initiative (GRI) framework, a Sustainability Report is being published
annually. For reporting on ESG (Environment, Social and Governance) parameters by listed
entities, your Bank is also endeavoring to adapt to the "Business Responsibility and
Sustainability Report (BRSR)" framework.
Sustainability Initiatives of your Bank
Your Bank's effort has been to align the Sustainability initiatives
with the National priorities focusing on achieving much- desired Sustainable Development
Goals (SDGs). Some of the key initiatives already undertaken and in contemplation inter-
alia include:
Recognizing the concerns of Climate change as a Corporate Social
obligation, your Bank has charted a Carbon Neutrality strategy intending to achieve the
status of a Carbon Neutral organization by the year 2030 in a phased manner. Installation
of solar systems at Bank's owned premises, Energy-efficient lighting and air conditioning
systems at Bank's premises are being taken up continuously. Your Bank also has its
windmills installed for captive use, having an aggregate capacity of 15 MW.
New loan offerings to help the cause of Climate Action and the already
introduced unique loan products like E-Rickshaw Loan and Green Car Loan. "Surya
Shakti- Solar Finance" and "Finance to Bio-Fuel Projects" have been made
available. Recognizing Climate Change as one of the crucial risks the world faces today,
your Bank, has developed its Climate Change Risk Management Policy.
In line with the country's vision for scaling up Renewable Energy (RE)
power generation, your Bank is also facilitating RE financing in a big way. Your Bank has
availed lines of credit from multilateral agencies viz the World Bank, among others for
onward lending to RE Power developers. The FY 2021-22 saw the dual listing of SBI's Green
Bonds worth USD 650 million on the India International Exchange and the Luxembourg Stock
Exchange.
Your Bank's offices, branches and other establishments are working
towards adopting a green ecosystem. As of now, 18 premises of the Bank have been certified
by Indian Green Building Council (IGBC) under different categories (Platinum, Gold or
Silver). Nearly 500 Bank premises now have Solar power installations, and more than 3000
ATMs are backed by solar power. Additionally, 326 rainwater harvesting sites at the Bank's
various premises have been set up. Your Bank is also striving to shift the power
requirements of its large establishments from existing fossil fuel-based to green sources.
Under this initiative, Bank's two prominent establishments- Corporate Office Building in
Mumbai and the Mumbai Metro Local Head office have successfully transitioned to the green
energy platform. Your Bank also has an Electronic Waste (e-Waste) Management Policy to
handle such waste effectively.
During FY2022, more than six lakh trees were planted by your Bank
countrywide.
Your Bank has also taken digitization in a big way by integrating its
digital strategy with its overall business strategy. Enhanced digitalization is poised to
bring greater ease of business and strengthen the sustainability agenda by positively
impacting the triple bottom line of Planet, People and Profit. Bank's flagship digital app
- YONO, has contributed immensely towards reduced paper usage, apart from significantly
facilitating business conduct and enriching customer usage. It is estimated that the
Pre-Approved Personal Loan (PAPL) accounts opened through the YONO app have avoided
approximately 383 lakh sheets of paper during FY 202122. Further, to motivate your Bank's
digital channel customers, SBI is offering Green Reward Points. These can be redeemed for
credit to SBI Green Fund, the proceeds of which will be utilized for sustainable
activities like Tree plantation, installation of water harvesting units, construction of
Bio-toilets, and Covid care activities, among others.
During the current financial year, your Bank observed various days
having Sustainability relevance, viz. World Environment Day, International Yoga Day, World
Soil Day, and Earth Hour. Further, "Joy of Giving Week-Daan Utsav" was observed
throughout the Bank, through which donation activities were carried out for marginalized
sections of the society. Further, with an intent to positively engage with employees, an
online Quiz was launched for their continued sensitization on ESG and SDGs related
matters. Additionally, a suitably crafted innovative engagement programme for young
employees called "Samarthya" was also launched, highlighting the importance of
ethical and professional standards in successfully discharging roles and duties.
In addition to the above, your Bank has been taking several initiatives
directed towards community development in general, imparting financial literacy, widening
the net of financial inclusion and better human capital management.
V. Subsidiaries
SBI Capital Markets Limited (SBICAPS)
(Rs. in crore)
| Name of the subsidiary company |
Ownership (SBI Interest) |
% of ownership |
Net Profit / (losses) Mar 2022 |
| SBI Capital Markets Ltd. |
58.03 |
100% |
620.10 |
SBI Capital Markets Limited (SBICAPS), a 100% owned subsidiary of your
Bank, is one of India's leading domestic Investment Banks, registered with SEBI as a
category-I Merchant Banker and a Research Analyst. Incorporated in 1986, SBICAPS offers
its clients the entire bouquet of investment banking and corporate advisory services.
These services include Project Advisory, Loan Syndication, Structured Debt Placement,
Mergers and Acquisitions, Private Equity, Restructuring Advisory, Stressed Assets
Resolution, IPO, FPO, Rights Issues, Debt and Hybrid Capital raising. SBICAPS is also
involved in fundraising through new products such as Real Estate Investment Trusts (REIT)
and Infrastructure Investment Trusts (InvIT) in line with Government's Asset Monetisation
Plan. Headquartered in Mumbai, SBICAPS has 5 Regional Offices across India (Ahmedabad,
Chennai, Hyderabad, Kolkata and New Delhi) and 4 wholly-owned subsidiaries - SBICAP
Securities Limited, SBICAP Ventures Limited and SBICAP Trustee Company Limited and SBICAP
(Singapore) Limited.
Ranked No.1 - India Borrower Loans - Mandated Lead Arranger - market
share of 22.6% (March 2022) as per Bloomberg League Table.
On a standalone basis, SBICAPs posted a PBT of '601.66 crores during
FY2022 against '573.11 crores during FY21 and a PAT of '339.70 crores for FY2022 as
against '273.25 crores for FY2021. On a consolidated basis, the Company has posted a
profit after tax of '620.10 crores against '527.10 crores in the previous year.
During the financial year, the Company completed and has been involved
in several marquee transactions such as Debt syndication for Numaligarh Refinery,
Financial Debt Resolution of Dewan Housing Financial Corporation Limited, maiden Bond
issuance of Vadodara Municipal Corporation, - Pre-IPO Advisory & IPO of Life Insurance
Corporation of India etc.
A. SBICAP SECURITIES LIMITED (SSL)
SBICAP Securities Ltd (SSL), one of the essential players in the
broking industry, started operations in 2006 to provide primary and secondary capital
market access to retail customers and became the broking arm of the State Bank of India
(SBI) Group.
SSL has 4 main verticals - Retail Broking, Retail Sales, Retail Assets
and Retail Distribution and it has showcased its strength across all these verticals.
In broking, SSL currently serves more than 26 lakhs customers through
the state of the art trading platforms on the mobile app, website and dealer terminal. SSL
offers its customers a variety of products and services to choose from - such as Equity,
Derivatives, Mutual Funds, and Currency.
The Company is acquiring new Demat accounts through the Bank channel
and the Open Market channel, through Digital account opening journey. In Retail Assets,
SSL is the captive sourcing arm of the State Bank of India and is contributing to Bank's
overall Home Loan and Auto Loan business.
SSL is also a one-stop third party distribution arm for mutual funds,
bonds, insurance, Sovereign Gold Bonds, Corporate Deposits etc through a strong IFA
network. The retail Distribution vertical is being ably supported by all other business
verticals in selling/cross-selling these products to the clients.
We launched the new "SBI securities" mobile & web trading
app in September 2021 and have also revamped backend trading systems for robust support to
the latest web and mobile trading platforms.
The Company posted a net profit of '232.89 crore during the year ended
FY2022 as against '207.70 crore in FY2021.
B. SBICAP VENTURES LIMITED (SVL)
SBICAP Ventures Ltd (SVL), a wholly- owned subsidiary of SBI Capital
Markets Limited, presently manages Neev Fund I (Neev), SVL SME Fund (NEEV II) & SWAM
IH Investment Fund I (SWAMIH). The Company is also the investment manager for two Funds of
Funds: Self Reliant India (SRI) Fund and the UK India Development Cooperation Fund
(UKIDCF).
Neev is SEBI registered Category-I AIF with a mandate to invest in
infrastructure development of eight low-income states. SVL is a general partner in the
Fund with '63.64 Cr investment, 12.61% of fund size.
SVL SME Fund is a SEBI registered Category I AIF, which had its first
close in June 2021 at '480 Cr with a drawable corpus of '145 Cr. The Fund has made three
investments aggregating to '127 cr in the first year.
SWAMIH is a SEBI registered Category-II AIF, which first closed on 6th
December 2019 at '10,037.50 crores with the Government of India, PSBs and institutions as
investors in the Fund. It has the mandate to provide last mile funding to stalled housing
projects. The Fund has also received a soft commitment from GOI to invest an additional
'5,000 Cr in the Fund.
SRI Fund was set up in Oct 2021 by National Small Industries
Corporation (NSIC) on behalf of the Ministry of MSME with a corpus of '10,000 Cr. Up to
March 2022, final approval has been given for 23 investments in daughter funds amounting
to '3,465 Cr.
SVL has earned a gross revenue of '91.75 Cr for FY2022 as against
'79.77 Cr for FY2021. SVL has posted a net profit of '32.28 Cr for FY2022 as against
'37.04 Cr for FY2021.
C. SBICAP TRUSTEE CO. LIMITED (STCL)
STCL, commenced the Security Trustee business on 1st August
2008, is active in providing security trustee services for high-value lending to infra
projects and large and medium corporates and is the No.1 Security Trustee in the industry.
They also perform the role of a Debenture Trustee for the Debentures / Bonds issued by
Corporates. STCL also provides other related services like Share Pledge Trustee, Escrow
Trustee, AIF and InvITs.
STCL posted a Net Profit of '15.71 Crores during FY2022 against '12.98
crores in FY2021.
Further, STCL has developed the new product ‘Virtual Data Room
(VDR)', which provides cloud storage and an easily retrieval facility.
D. SBICAP (SINGAPORE) LIMITED (SSGL)
SSGL is a wholly-owned subsidiary of SBI Capital Markets Limited. It
commenced business in December 2012. SSGL is in the process of voluntary winding up of
operations. The process of surrendering the license to the Monetary Authority of Singapore
(MAS) has been completed.
SBI Cards & Payments Services Limited (SBICPSL)
(Rs. in crore)
| Name of the subsidiary company |
Ownership (SBI Interest) |
% of ownership |
Net Profit / (losses) Mar 2022 |
| SBI Cards and Payment Services Limited |
652.63 |
69.20% |
1,616 |
SBI Cards and Payment Services Limited ("SBI Card") is a
non-banking financial company that offers an extensive credit card portfolio to individual
cardholders and corporate clients, which includes lifestyle, rewards, travel & fuel
and banking partnerships cards along with corporate cards covering all primary
cardholders' segments in terms of income profile and lifestyle. It has diversified
customer acquisition channels to engage prospective customers across a broad spectrum.
Performance Highlights (FY2022):
• Profitable operations: PAT '1,616 Cr, achieved 64 % YoY growth,
ROAA at 5.4% up by 156 bps YoY, ROAE at 22.8% up by 621 bps YoY
• Market share: Cards in force 18.9%, Spends 19.2%, Transactions
19.8% [as per RBI report available till Feb' 22]
• Growing Portfolio: Cards-in-Force of 1.38 Crore at 16% YoY,
Spends '186,353 Cr at 52% YoY, Receivables '31,281 Cr at 25% YoY
• Asset quality: GNPA @ 2.22%, NNPA @ 0.78%, total management
overlay at '51 Cr
• Healthy CAR @ 23.8%, T-1 @ 21.0%
Awards and recognitions:
• Recognised as Super Brand 2021 in the credit card category.
• Recipient of the ‘Reader's Digest Trusted Brand' award for
2021 in the Credit Card Category.
• Received ISO 31000 compliance and COPC certification
• Silver Stevie Award for back-office customer service and Bronze
Stevie Award for the best return on customer service investment categories.
SBI DFHI LIMITED (SBIDFHI)
(Rs. in crore)
| Name of the subsidiary company |
Ownership (SBI Interest) |
% of ownership |
Net Profit / (losses) Mar 2022 |
| SBI DFHI Ltd. |
131.52 |
72.17% |
142.06 |
SBI DFHI Limited, one of the largest standalone Primary Dealers (PD)
with pan
India presence, is mandated to support the book building process in
primary auctions and provide depth and liquidity to secondary markets in G-Sec. Besides
Government securities, it also deals in money market instruments and non-G-Sec debt
instruments. As a PD, its business activities are regulated by the RBI.
The Company posted a Net Profit of '142.06 crore as of 31st
March 2022, as against '251.67 crore as of March 31, 2021. The total balance sheet size
was '13,079.28 crore as of March 31, 2022, as against '10,013.90 crore as of March 31,
2021.
SBI General Insurance Company Limited (SBIGIC)
(Rs. in crore)
| Name of the subsidiary company |
Ownership (SBI Interest) |
% of ownership |
Net Profit / (losses) Mar 2022 |
| SBI General Insurance Company Ltd. |
151 |
69.96% |
131 |
SBI General is one of the fastest-growing private general insurance
companies, with a commitment of carrying forward the legacy of trust and security along
with vision to become the most trusted general insurer for a transforming India. SBI
General, incorporated in 2009 as a public limited company, was originally a joint venture
between the State Bank of India (SBI) and IAG International Pty Limited, a subsidiary of
Insurance Australia Group Limited. Out of the 74% stake in the Company, 4% stake was
divested in 2018. Further, IAG, the erstwhile JV partner of 26%, had made a complete exit
in March 2020 by divesting its entire stake to Napean Opportunities LLP (16.01%) and Honey
Wheat Investments Ltd (9.99%).
SBI General has expanded its presence from 17 branches in 2011 to over
137 branches pan-India. To date, The Company served around 8.7 crore customers through a
robust multi-distribution model encompassing Bancassurance, Agency, Broking and Retail
Direct Channels. The Company has also entered into strategic partnerships with India's
leading automobile manufacturers and brokers to create long-term sustainable value.
SBI General focus on serving three key customer segments, viz. - Retail
Segment, Corporate Segment and SME Segment; and are future-ready to serve the growing
needs of Indians with new age processes and services at affordable prices.
SBI General registered a growth rate of 11% with a market share of
4.15% in FY2022 and ranked 7th amongst private insurers and 12th in
the overall industry. SBI General has generated a net profit of '131 Cr in FY2022.
Awards and Recognitions:
• Asia's Best General Insurance Company for Rural Presence, 2021
by Insurance Alerts.
• Ranked No. 1 under General Insurance by YouGov Finance Purchase
Rankings for 2021,
• Insurer of the Year in the Non-Life category at FICCI Insurance
Industry Awards,
• ‘One of the 50 Most Trusted Brands, 2021', for epitomising
Excellence in the BFSI Industry' by Marksmen Daily in partnership with NDTV 24*7.
• ‘Responsible Business of the Year' at SABERA 2021.
SBI GLOBAL FACTORS LIMITED (SBIGFL)
(Rs. in crore)
| Name of the subsidiary company |
Ownership (SBI Interest) |
% of ownership |
Net Profit / (losses) Mar 2022 |
| SBI Global Factors Ltd. |
137.79 |
86.18% |
25.26 |
SBIGFL is a leading NBFC providing factoring services for Domestic and
International trade. The Company's services are especially suitable for MSME sector
clients to free up resources locked in book debts and provide necessary liquidity.
The company reported Profit After Tax (PAT) of '25.26 crore for the
year ended March 2022 against '18.47 crore for the year ended March 2021. The turnover for
the year ended March 2022 is '4,773 crores compared to a turnover of '4,352 crore in March
2021.
Turnover in TReds for the year ended March 2022 is '1,737 crore, as
against '982 crore in the previous year ended in March 2021.
SBI Life Insurance Company Limited (SBI Life)
(Rs. in crore)
| Name of the subsidiary company |
Ownership (SBI Interest) |
% of ownership |
Net Profit / (losses) Mar 2022 |
| SBI Life Insurance Company Ltd. |
555 |
55.48 |
1506 |
SBI Life has a multi-channel distribution network comprising an
expansive bancassurance channel, including State Bank of India, the largest bancassurance
partner in India, an extensive and productive individual agent network comprising 146,057
agents as of 31st March, 2022, as well as other distribution channels,
including direct sales and sales through corporate agents, brokers, insurance marketing
firms and other intermediaries.
The Company has proven its market leadership in the period ended 31st
March, 2022, with the pole position in Individual New Business Premium, Individual
Rated Premium, Total Rated Premium and Total New Business Premium among private insurers.
During FY2022, more than 19.2 lakhs of individual new policies were issued. Leveraging
wider reach achieved through its network of 952 offices, SBI Life has systematically
brought large rural areas under insurance reach.
The Company witnessed a 23.4% growth in Total New Business Premium
(NBP) vis-a-vis the industry growth of 12.9%. The market share of SBI Life in Total New
Business Premium (NBP) among all private players as of 31st March 2022 is
22.0%. Total New Business Premium of the Company for the period ended 31st March
2022 stands at '25,457 crores. Individual New Business stands at '16,501 crores, and Group
New Business Premium stands at '8,958 crores, for the period ended 31st March
2022.
SBI Life witnessed a PAT of '1,506 crores in FY22 against '1,456 crores
in FY21. The AUM of the Company crosses '2.6 trillion mark and recorded a growth of 21% at
'2,67,409 crores as of 31st March 2022 as compared to '2,20,871 crores as of 31st
March 2021.
For FY2022, the Indian Embedded Value (IEV) stands at '39,625 crores,
Value of New Business (VoNB) stood at '3,704 crores for FY22. VoNB margin stood at 25.9%.
Awards and Recognitions:
• ‘Gold' in Editor's Choice Awards for ‘Customer
Orientation in Life Insurance' at the 20th Outlook Money Awards 2021
• ‘Gold' Honour' at DIGIXX Awards 2021 for Digital Marketing
Excellence in Technology for MConnect Life Mobile Application
• ‘Golden Peacock National Training Award' (GPNTA) by Golden
Peacock Awards
• "Bronze" award under the ‘Rural Health Initiative
category by the Integrated Health & Well-Being Council (IHWC)
• "Insurer of the Year - Life Category" at the FICCI
Insurance Industry Awards 2021
• Best CSR Initiative" at InsureNext Awards by Banking
Frontiers
• "Best HR Initiatives' at InsureNext Awards by Banking
Frontiers
• "Best Risk Management Practices" at InsureNext Awards
by Banking Frontiers
SBI Funds Management Limited (SBIFML)
(Rs. in crore)
| Name of the subsidiary company |
Ownership (SBI Interest) |
% of ownership |
Net Profit / (losses) Mar 2022 |
| SBI Funds Management Ltd. |
31.50 |
62.59 |
1070.65 |
SBI Funds Management Limited (formerly known as SBI Funds Management
Pvt. Ltd.) is the Asset Management Company (AMC) of SBI Mutual Fund. It is the market
leader in the industry and is positioned among the fastest-growing AMCs in the country. In
the financial year 202122, under the Mutual Fund segment, it has grown 28.3% against the
industry average of 19.5%. If the last three years are considered, SBIFML has achieved a
CAGR of 31.6% against the industry average of 16.1%, indicating its consistent
performance. It has one of the largest investor bases, with over 107 lac live investor
folios, including 31.50 lac new folios added. The fund house has 22.79 lac active folios
under the direct investor category and over 2.1 lac folios under the institutional
investor category, including 1240 superannuation funds. SBIFML has maintained its top
leadership position in the passive fund category (ETF) with a dominant market share of
51.6%.
The Company's Average Assets Under Management (AAUM) during the quarter
ended March 2022 was '6,47,067 crore, with a market share of 16.86%, as against '5,04,455
crore and 15.71% respectively achieved during the corresponding period in the previous
year. On a standalone basis, SBIFML has posted a net profit (PAT) of '1070.65 crore during
the year against '862.76 crore earned last year.
The Company has a wholly owned foreign subsidiary viz. SBI Funds
Management (International) Private Limited is based in Mauritius, which manages offshore
funds. SBIFML also manages Alternative Investment Funds (AIF) and provides Portfolio
Management Services (PMS) to institutions and individuals as part of its domestic
business.
SBI Payment Services Private Limited (SBI Payments)
(Rs. in crore)
| Name of the subsidiary company |
Ownership (SBI Interest) |
% of ownership |
Net Profit / (losses) Mar 2022 |
| SBI Payments |
4.50 |
74% |
142.36 |
SBI became the first PSB to form an exclusive JV, i.e., SBI Payment
Services Pvt. Ltd. (SBI Payments), for merchants acquiring business and holding a 74%
stake in the Company. The Company's objective is to create a state-of-the-art acceptance
ecosystem in all geographies of the country and enable the merchants to accept payments
digitally across various form factors.
SBI Payments is one of the largest acquirers in the country, with more
than 2.45 million Merchant Payment Acceptance Touch Points and over 9.24 lakhs PoS
machines as of 31st March 2022, distributed across geographies (Tier 1 to Tier
6). During the financial year, the Company launched acceptance for payment of vaccination
and scholarship through the YONO SBI Merchant application (a Soft PoS solution). In
addition to existing channels for merchant onboarding, the Company has started partnering
with significant Payment Facilitators to expand its reach PAN India.
SBI Pension Funds Private Limited (SBIPFPL)
(Rs. in crore)
| Name of the subsidiary company |
Ownership (SBI Interest) |
% of ownership |
Net Profit/ (losses) Mar 2022 |
| SBI Pension Funds Private Limited. * |
18 |
92.52% |
51.98 |
*SBI Capital Markets Limited and SBI Funds Management Limited hold 20%
equity each in the Company.
SBIPFPL is one of the three PFMs appointed by the PFRDA for the
management of Pension Funds under the NPS for Central Government (except Armed Forces) and
State Government employees, and one of the seven PFMs appointed for the management of
Pension Funds under the Private Sector.
The Company's total Assets Under Management (AUM) as of 31st
March 2022 is '2,82,476 crores (YoY growth of 26.89%). The Company maintains a leadership
position amongst PFMs in terms of AUM with a market share of 38.35%.
The Company has earned the highest ever PAT of '51.98 cr. in FY 2021-22
due to an increase in Investment Management Fee by PFRDA w.e.f. 01.04.2021.
SBI SG Global Securities Services Private Limited (SBI-SG)
(Rs. in crore)
| Name of the subsidiary company |
Ownership (SBI Interest) |
% of ownership |
Net Profit / (losses) Mar 2022 |
| SBI SG Global Securities Services Pvt. Ltd. |
52 |
65% |
100.19 |
SBI-SG, a joint venture between SBI and Societe Generale, with 65%
holding by SBI, commenced commercial operations in 2010 to offer high quality custodial
and fund administration services to complete the bouquet of premier financial assistance
provided to its premium clients by the SBI Group.
Assets under Custody (AUC) stands at '12,70,299 Cr as of 31.03.2022,
while the Assets Under Management (AUM) is '8,99,880 Cr as of 31.03.2022. The Company's
Net Profit stands at '100.19 Cr for the FY22 as against '87.02 Cr for FY21.
SBI-SG has been rated as the "Best subcustodian" in the Cross
Border Client category - 2021, as well as Rated no. 2 in the Domestic Client Category and
Best Fund Administrator in India & Global Outperformer in the Global Custodian
magazine's Agent Banks and Emerging Markets Survey - 2021.
SBI Foundation
SBI Foundation was established by the State Bank of India as a section
VIII company under the Companies Act (2013) to undertake the CSR Activities of SBI and its
subsidiaries in a planned and focused manner.
Through SBI Foundation, your Bank is making a paradigm shift in the
socioeconomic development of the country by creating an inclusive, sustainable and
self-sufficient ecosystem through which marginalised and underserved communities from
across the country can lead healthier and prosperous lives without discrimination based on
region, religion, caste, creed or gender. For FY2022, 105 projects were sanctioned, with a
budget of '168.09 crore.
COVID-19 Response
During FY 2021-22, 62 projects for '99.37 Cr were sanctioned towards
Covid 19 and healthcare initiatives like COVID Care centres/ICU facilities, Genome
Sequencing, upgrading health infrastructure, Initiatives in partnership with NGOs, and
other initiatives like UPI based prepaid vaccination vouchers, vaccination hesitancy
removal, etc.
Multiple initiatives were undertaken to support the setup of nationwide
ICU beds, Oxygenated beds, Covid-19 care centres, Isolation centres, among others. 6
oxygen generation plants along with 550 Oxygen Cylinders and 84 oxygen concentrators were
also provided. An Oxygen Pipeline Extension (2000 LPM) and Oxygen Monitoring System to
equip 115 beds with oxygen supply was installed at Dr. Hedgewar Charitable Hospital: to
improve and strengthen the health infrastructure in the region in preparedness for a
possible third COVID-19 wave.
Healthcare Flagship Programmes
Various healthcare initiatives like Organ Donation, Mobile Medical
Units, Nucleic Acid Amplification testing, Aspheris machine in Blood Bank, ECG screening
for Foetal Heart abnormality, Cleft surgeries and Neuro Rehabilitation centre were taken.
Project Gift Hope, Gift Life: Through this project, SBI Foundation, in
partnership with MOHAN Foundation, aims to improve the organ donation rate in India from
deceased donors through organ donation helpline, training healthcare personnel,
strengthening organ donation programme in Manipur, Karnataka, Chandigarh (UT), Andhra
Pradesh & Maharashtra, promoting support group for organ failure patients, and raising
awareness and pledging among citizens.
Project NAT: The Nucleic-Acid
Amplification Testing (NAT) has been setup , which aims to introduce
advanced blood testing technology at Tata Memorial Centre run Tata Memorial Hospital in
Mumbai to test 30-35,000 blood donor samples to improve blood transfusion safety for
approx. 50,000 cancer patients. This will allow blood transfusions to be safer for
patients, reduce morbidity or mortality due to TTIs (Transfusion Transmitted Infection),
and increase the rate of detection of TTI in blood samples tested by NAT as compared to
the existing ELISA method.
Recognising the needs of the marginalised, SBI Foundation undertakes
projects from various thematic areas in an attempt to address the most pressing issues
affecting our communities. Here are some of the CSR activities undertaken by your Bank
through the SBI Foundation.
SBI Youth for India Fellowship
SBI Youth for India is a 13-month rural fellowship program which
provides a framework to India's bright young minds from urban areas to join hands with
rural communities in their struggles & aspirations. Our grassroots 14 partners NGOs
facilitate this journey of rural immersion also in the selection of meaningful projects to
solve the rural issues. The application process for 2022-23, i.e 10th batch of
fellows has begun on 4th March 2022. 74 fellows from the 09th batch
(2021-22) have finalized their rural project for implementation across the 15 states of
our country.
SBI GRAM SEVA Programme: "SBI Gram Seva" is a flagship
program of the SBI Foundation, commenced in Aug 2017, which aims for holistic and
sustainable rural development like digitisation, promotion of quality education,
improvement in primary health services etc. in the adopted villages. During the financial
year, SBI Foundation has sanctioned 5 more projects under the Gram Seva program by
commencing the third phase of SBI Gram Seva program by adopting 25 new villages from NITI
Aayog's aspirational Districts in five more States- Andhra Pradesh, Chhattisgarh, Madhya
Pradesh, Odisha, and Rajasthan. With this, SBI Foundation has achieved the milestone of
adopting 100 villages under the SBI Gram Seva program. The program has so far impacted
20322 families and 1,13,010 beneficiaries across 100 villages in 16 states.
The SBI Gram Seva programme has gradually transformed these adopted
villages into model village clusters in respective locations in the last five years. The
programme has also been able to bring the desired behavioural change and community
participation to the fore. In a nutshell, through the Gram Seva program, SBI Foundation
has been working towards building self-reliant (Atma Nirbhar) villages, in line with
Mahatma Gandhi's philosophy of Gram Swaraj. During the Financial Year 2021-22, an impact
assessment of the programme was conducted by Madras School of Social Work (MSSW), Chennai,
and they rated the programme quite high in terms of a comprehensive strategy, effective
implementation, social returns on investment (SROI), and the sustainability aspects of the
programme. The programme has also garnered appreciation and awards from various forums,
media, and others. With an impactful presence across 16 States of the country, the Gram
Seva programme has reaffirmed the SBI Foundation's commitment to the upliftment of
marginalised communities, thereby continuing SBI's long-held legacy of being the Bank for
rural India.
SBI Sanjeevani- Clinic on wheels: SBI
Foundation started ‘SBI Sanjeevani- Clinic on wheels', a mobile
medical unit in South Sikkim during FY 2016-17, to provide primary healthcare services to
the rural communities. The project has improved the quality of life of the communities in
the remote villages by providing doorstep medical services.
During the current financial year, taking into consideration the
current crisis in healthcare due to the Covid-19 pandemic, SBI Foundation has up-scaled
the project to 10 States, Arunachal Pradesh, Bihar, Chhattisgarh, Haryana, Karnataka,
Madhya Pradesh, Mizoram, Nagaland, Telangana, and Uttarakhand, with an estimated outreach
of over 2 lakh beneficiaries across 250 remote villages. The project has been
well-received by the communities, and local Health departments are also supporting the
initiative.
Centre of Excellence for Persons with Disabilities (CoE):
Centre of Excellence for Persons with Disabilities (PwD), established
in 2017, primarily works on empowering PwDs through skill enhancement to make significant
and measurable improvements. CoE conducted 27 Special Online training programs (of
one-week duration) for 651 employees with disabilities, of which 24 Programs for 599 SBI
employees with disabilities. Three online training programs of 5 days duration were
conducted for 52 officers with disabilities of Telangana Grameena Bank and Indian Overseas
Bank. Two offline training programs of 5 days duration were conducted for 61 visually
impaired officers of Andhra Pradesh Grameena Vikas Bank. The program's primary focus is
the advocacy of the rights of persons with disabilities, sensitization, and addressing the
accessible needs of PwDs. So far, CoE has conducted six webinars attended by 168
participants from PSBs. Four sensitisation workshops were conducted for the HR officials
of Union Bank of India. During the year 2021 -22, CoE also sanctioned 8 projects with a
total grant amount of '9.36 Cr focusing in the area of disability including project:
"Techtonic Grand Challenge for Assistive Technology Start-ups" with a project
cost of '1.00 Cr.
Rehabilitation treatment of People with Disability (PwD)- An initiative
to support rehabilitation services to 2000 PwDs suffering from traumatic brain and spinal
injuries through 7,000 rehabilitation sessions, one on one consultation sessions with
medical experts, and awareness programmes to educate the masses about the scourge of
Traumatic Brain Injury (TBI).
Upgradation of Clinical Services of Dr. S.R. Chandrasekhar Institute of
Speech and Hearing: SBI Foundation has partnered with Bangalore Speech and Hearing Trust
to support the project "Upgradation of Clinical Services of Dr.
S.R. Chandrasekhar Institute of Speech and Hearing at Bangalore to
enable the institute to provide clinical services to the persons with Speech, Hearing,
Language and Communication disorders. The project will benefit more than 4700
beneficiaries from economically backward and rural areas of the Bengaluru District.
School For Potential Advancement and Restoration of Confidence (SPARC
India): ): SBIF has partnered with SPARC India to ensure inclusive education in government
primary schools in Lucknow which aims to develop 20 primary schools into inclusive schools
for Children with Disabilities (CwDs), build capacity, undertake advocacy and sensitise
relevant stakeholders for a period of 2 years.
Events: CoE celebrated Global Accessibility Awareness Day (GAAD),
International Day of Persons with Disabilities (IDPD) and World Braille Day.
Education Programmes
Thirteen projects for '22.53 Cr were sanctioned to support various
initiatives like Prambhik Bhasha Shikshan Programme, Transforming schools and anganwadis
in Ladakh, web-based literacy project, Mathematics education with Khan Academy, Toy Bank,
Effective governance through School Complexes, Setting up Mini Science centres, Quality
education in Middle School grades, Capacity building of teachers and educational
stakeholders, Inclusive education for children with Neurodevelopment disorder, support
National Integrity and Educational Development Organisation (NIEDO), Tata Institute of
Social Sciences (TISS) to build a coherent school mental health system for improving
mental health outcomes of adolescents in India and support the ‘Model School'
initiative for renovating 11 Government Schools and providing a conducive and
comprehensive learning environment for the students.
Livelihood & Entrepreneurship
Eight projects at a financial cost of '13.60 Cr were sanctioned to
support initiatives like SBIF Revolving Fund to provide Incubation support to social
enterprises, Integrated Fish Farming promotion, Mega
Watershed construction, Wadi Agriculture and incubation support to 15
start-ups, Training of 5000 youths in Banking Financial Services Insurance (BFSI) industry
Job Roles and TISS Prayas to re-integrate and rehabilitate the socially excluded and
stigmatised population in criminal and juvenile justice system etc
Women Empowerment Reintegration of Survivors of Trafficking and
Violence through Skills Training, Education, and Sustainable Livelihood:
An initiative for reintegrating survivors of trafficking and violence
into society by providing them with relevant training, education, and sustainable
livelihood opportunities in the Thane district, Maharashtra.
Promotion of Sports
Two projects for '48.90 lakhs were sanctioned to support 13 Athletes in
partnership with Abhinav Bindra Foundation Trust and Karnam Malleswari Foundation.
Sustainability & Environment
Five projects worth '6.84 Cr were sanctioned to plant fruit-bearing
trees, securing a vital tiger corridor between Melghat, Satpura Tiger reserves, support
the conservation of Red Panda species in the Khangchendzonga landscape and innovative
Public-Private Partnership (PPP) model for dry waste management at Aurangabad, Maharashtra
to ensure maximum segregation.
Awards and Accolades:
| Name of the Award |
Category |
Organization/ Agency |
| CSR Foundation of the Year Winner |
Large |
CSR BOX |
| Environment - Winner |
Small |
CSR Box |
| Organ Donation - Winner |
Valuable Contribution |
Economic Times (TOI) |
| Jury Recognition for Healthcare (Covid) |
Healthcare |
Indian Chamber of Commerce |
Regional Rural Banks (RRBs)
With two-thirds of our country's population living in rural areas, it
presents a vast yet under-tapped opportunity for the Indian Banking sector. Our extensive
network of sponsored Regional Rural Banks (RRBs) is well placed to play a more significant
role and has a great potential to address this scenario. Regional Rural Banks have a
distinct competitive advantage due to their large account base and decades of trustearning
service tradition, resulting in close proximity to the rural customers.
SBI has sponsored 14 Regional Rural Banks operating at regional levels
in 14 different States. These RRBs have a combined branch strength of 4,725 spread across
217 Districts as of 31st March 2022.
The sponsored RRBs of SBI are on the CBS platform and offer Banking
services on par with other commercial banks operating in the country. The Banks have
adopted the best practices and are well placed to handle the ever-evolving demands of
customers, particularly in Rural and Semi-urban spaces, through their customer-centric
approach.
Business Highlights of FY2022:
The aggregate deposits and advances of the 14 RRBs sponsored by the
Bank as of 31st March 2022 stood at '1,13,502 crore and '73,755 crore,
respectively, as against '1,05,628 crore and '66,551 crore as on 31st March
2021.
During the year under review, despite the persistently challenging
macroeconomic environment and covid pandemic, the RRBs improved their business, with
deposits growing by 7.46% and advances by 10.82% on YoY as of 31st
March 2022. RRBs expanded their housing and gold loan exposure by 19.08% and 30.87% (YoY),
respectively, as a planned strategy to diversify the portfolio.
The RRBs together have posted a Net- Profit of '1,659.53 crore during
the year as against a Net-Profit of '1,004.28 crore as of 31st March 2021
despite providing substantial provision for the pension of '1,245.02 crore as of 31st
March 2022. The RRBs continue to focus on improving earnings from their core banking
business, strengthening the fee income streams and maintaining control of operating costs.
The combined Gross Non- Performing Assets ratio of the RRBs has
decreased to 4.64% as of 31st March 2022 against 5.44% as of 31st
March 2021 despite the challenging economic situation due to the covid-19 pandemic. The
Net NPA stands at 1.22% as against 2.16% as of 31st March 2021.
Business per employee during the year improved to '10.76 crore as of 31st
March 2022 as against '10.09 crore as of 31st March 2021.
Significant Developments in FY2022:
The year under review witnessed several significant events, some of
which are listed below:
The 14 RRBs with 4,725 branch networks are expected to work more
efficiently in the upcoming years, thanks to the introduction of Asset Management Hubs
(AMHs) - a centralised credit processing system.
To counter the competition from new-age Banks in the geography and have
a digital presence, seven RRBs have launched a mobile app for digital account opening with
a video KYC facility. This facility is being implemented in all 14 RRBs sponsored by SBI.
To improve treasury yields and returns, the engagement of SBI Fund
Management Limited (SBIFML) for non-discretionary Portfolio Management Services (PMS) for
RRBs is approved. 12 RRBs are onboarded, and the remaining 2 RRBs are in process.
Mobile App for digital account opening is also introduced in the BC
channel in 09 RRBs, and this will be implemented in all RRBs.
Associates:
| Sr. Name of the Associate No. |
Country of Incorporation |
Group?s
Stake (%) |
| Current Year |
Previous Year |
| 1 Andhra Pradesh Grameena Vikas Bank |
India |
35.00 |
35.00 |
| 2 Arunachal Pradesh Rural Bank |
India |
35.00 |
35.00 |
| 3 Chhattisgarh Rajya Gramin Bank |
India |
35.00 |
35.00 |
| 4 Ellaquai Dehati Bank$$ |
India |
35.00 |
35.00 |
| 5 Jharkhand Rajya Gramin Bank$$ |
India |
35.00 |
35.00 |
| 6 Madhyanchal Gramin Bank |
India |
35.00 |
35.00 |
| 7 Meghalaya Rural Bank |
India |
35.00 |
35.00 |
| 8 Mizoram Rural Bank$$ |
India |
35.00 |
35.00 |
| 9 Nagaland Rural Bank |
India |
35.00 |
35.00 |
| 10 Rajasthan Marudhara Gramin Bank |
India |
35.00 |
35.00 |
| 11 Saurashtra Gramin Bank |
India |
35.00 |
35.00 |
| 12 Telangana Grameena Bank |
India |
35.00 |
35.00 |
| 13 Utkal Grameen Bank$$ |
India |
35.00 |
35.00 |
| 14 Uttarakhand Gramin Bank |
India |
35.00 |
35.00 |
$$ We have infused Bank?s share of additional capital in these 04
RRBs (i. Ellaquai Dehati Bank, ii. Jharkhand Rajya Gramin Bank, iii. Mizoram Rural Bank,
iv. Utkal Grameen Bank) on 10.03.2022, which is now held under Share Capital deposit A/c.
This will be accounted for in the Share Capital of respective RRBs after the infusion of
the proportionate stake by other stakeholders, i.e. Gol and respective State Govt.
VI. Management Discussion & Analysis (MDA)
In terms of compliance with the SEBI (Listing Obligations &
Disclosure Requirements) (Amendment) Regulations 2018, following ratios have changed by
more than 25%, as per details given below:
| (in %) |
Mar 21 |
Mar 22 |
|
Variation (bps) |
| % Change |
|
|
|
|
| Net Profit Margin |
6.61 |
10.02 |
341 |
51.59 |
| ROE |
9.94 |
13.92 |
398 |
40.04 |
Net Profit Margin:
The Net Profit has registered YoY growth of 55.19% (from a profit of
'20,410 Cr in FY21 to Net Profit of '31,676 Cr during FY22) as against YoY growth of only
2.39% in Total Income (from '3,08,647 Cr in FY21 to '3,16,021 Cr in FY22).
Return on Net worth:
The Net Profit has registered YoY growth of 55.19% (from a profit of
'20,410 Cr in FY21 to Net Profit of '31,676 Cr during FY22) as against YoY growth of
12.04% in Net worth of the Bank (from '2,14,666 Cr in FY21 to '2,40,502 Cr in FY22).
VII. Responsibility Statement
The Board of Directors hereby states:
i. that in the preparation of the annual accounts, the applicable
accounting standards have been followed along with proper explanation relating to material
departures.
ii. that they have selected such accounting policies and applied them
consistently and made judgements and estimates as are reasonable and prudent, so as to
give a true and fair view of the state of affairs of your Bank as on the 31st
March 2022, and of the profit and loss of your Bank for the year ended on that date;
iii. that they have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the provisions of the
Banking Regulation Act, 1949 and State Bank of India Act, 1955 for safeguarding the assets
of your Bank and preventing and detecting frauds and other irregularities,
iv. that they have prepared the annual accounts on a going concern
basis,
v. that the internal financial controls had been laid down, to be
followed by your Bank and that such internal financial controls are adequate and were
operating effectively; and
vi. that proper system had been devised to ensure compliance with the
provisions of all applicable laws and that such systems were adequate and operating
effectively.
VIII. Acknowledgement
During the year, Shri Anil Kumar Sharma was nominated as Director on
the Board u/s 19 (f) of SBI Act 1955 w.e.f. 13th April 2021 vice Shri Chandan
Sinha. Shri Prafulla P. Chhajed was nominated as Director on the Board u/s 19 (d) of SBI
Act 1955 w.e.f. 21st December 2021. Dr. Pushpendra Rai retired from the Board
on 05th February 2022 consequent upon completion of his term. Shri Sanjay
Malhotra was nominated as Director on the Board u/s 19 (e) of SBI Act 1955 w.e.f. 16th
February 2022 vice Shri Debasish Panda.
The Directors place on record their appreciation for the contributions
made by Shri Chandan Sinha, Dr. Pushpendra Rai and Shri Debasish Panda, to the
deliberations of the Board.
The Directors welcome Shri Anil Kumar Sharma, Shri Prafulla P. Chhajed
and Shri Sanjay Malhotra, the new Non-executive Directors on the Board.
The Directors also express their gratitude for the guidance and
co-operation received from the Government of India, RBI, SEBI, IRDA and other government
and regulatory agencies.
The Directors also thank all the valued clients, shareholders, Banks
and financial institutions, stock exchanges, rating agencies and other stakeholders for
their patronage and support and take this opportunity to express their appreciation for
the dedicated and committed team of employees of the Bank.
| For and on behalf of the |
|
| Central Board of Directors |
|
| Date: 13th May, 2022 |
Chairman |