About
State Bank of India
State Bank of India was incorporated on 01 July 1955. The Government of India nationalized the Imperial Bank of India in year 1955, with Reserve Bank of India taking a 60% stake, and name was changed to State Bank of India. State Bank of India is an Indian multinational, public sector banking and financial services institution.
Headquartered in Mumbai, SBI provides a wide range of products and services to individuals, commercial enterprises, large corporate, public bodies, and institutional customers through its various branches and outlets, joint ventures, subsidiaries, and associate companies.
The Bank operates in four business segments, namely Treasury, Corporate/ Wholesale Banking, Retail Banking and Other Banking Business. The Treasury segment includes the investment portfolio and trading in foreign exchange contracts and derivative contracts. The Corporate/ Wholesale Banking segment comprises the lending activities of Corporate Accounts Group, Mid Corporate Accounts Group and Stressed Assets Management Group. The Retail Banking segment consists of branches in National Banking Group, which primarily includes personal banking activities, including lending activities to corporate customers having banking relations with branches in the National Banking Group.
SBI provides a range of banking products through their vast network of branches in India and Overseas, including products aimed at NRIs. The State Bank Group, with over 22,266 branches, has the largest banking branch network in India. The State Bank of India is the 10th most reputed company in the world according to Forbes.
The Bank has 227 overseas offices spread over 30 countries. They have 22,414 branches of the parent in Colombo, Dhaka, Frankfurt, Hong Kong, Johannesburg, London and environs, Los Angeles, Male in the Maldives, Muscat, New York, Osaka, Sydney, and Tokyo. They have Offshore Banking Units in the Bahamas, Bahrain, and Singapore, and Representative Offices in Bhutan and Cape Town.
In the year 2001, the SBI Life Insurance Company was started by the Bank. It is the only Bank that has been permitted 74% stake in the insurance business. The Bank's insurance subsidiary 'SBI Life Insurance Company' is a joint venture with Cardif S.A in which Cardif holds 26% of the stake.
During the year 2005-06, the bank introduced 'SBI e-tax' an online tax payments facility for direct and indirect tax payment. They also launched the centralized pension processing. The Bank made a partnership with Tata Consultancy Services for setup C-Edg Technologies and consulting services to the banking, financial services and insurance industry. The bank was noted as 'The most preferred bank' in a survey by TV18 in association with AC Nielsen-ORG Marg. Also, the Bank was voted as 'The most preferred housing loan provider' in AWAAZ consumer awards for the year 2006.
In the customer loyalty survey 2006-07 conducted by 'Business World', the Bank was ranked number one in all parameters of customer satisfaction, service orientation, customer care/ call center, and customer's loyalty and home loans. SBI Funds was judged 'Mutual fund of the year' by CNBC/TV-18/CRISL. The Bank introduced new products and services such as web-based remittance, instant fund transfer, online-trading and comprehensive cash management.
During the year 2007-08, the Bank launched 965 branches all over the country. They inaugurated a new state-of-the art Dealing Room with online connectivity to all active forex intensive Branches at Corporate Centre in Mumbai. They launched a new product, Construction Equipment Loan to cater to construction Companies. Also, they introduced new products such as SBI Reverse Mortgage Loan and SBI Home Plus in the areas of Home Loans.
During the year, the RBI transferred their entire shareholding in the Bank representing 59.73% of the issued capital of the Bank to the Government of India. The Bank acquired 92.03% of equity of Global Trade Finance Ltd. Consequently; GTFL became a subsidiary of the Bank. They signed an MoU with the Indian railways for installing ATMs at 682 railway stations. In March 2008, the Bank opened their 10,000th branch and became only the second bank in the world to have more than 10,000 branches after China's ICBC.
During the year 2008-09, the company launched Import factoring, a new product in association with SBI Factors & Commercial Services Ltd. They increased the number of branches for retail sale of gold coins from 250 to 518. Also, they re-launched Gold Deposit Scheme at 50 branches to mobilize gold from domestic market for deployment as metal loans to jewellers.
During the year, the Bank opened their 11,111th Branch at Sonapur (Kamrup District) in Assam. They introduced three new products viz., SBI Special Home Loan, SBI Happy Home Loan and SBI Lifestyle in response to the stimulus package announced by the Government of India. Also, they entered into an exclusive arrangement with Tata Motors for handling the booking process of Tata 'Nano' cars.
During the year, the Bank launched on their website an on-line application form for registering Auto Loan enquiries and expeditiously monitoring and converting these leads into Auto Loans. Also, they launched 'e-invest' for the ASBA (applications supported by blocked accounts) to aid investors for their equity subscriptions, IPO and Rights applications.
During the year, the Bank set up a custodial services company namely SBI Custodial Services Pvt. Ltd., in joint venture with Societe Generale, France. They signed letter of intent for setting up of joint venture company for undertaking General Insurance Business. Also, they divested 10% equity stake in its wholly owned subsidiary SBI Pension Fund Pvt. Ltd at cost in favour of its subsidiaries. In October 2008, the Bank signed an MoU with State General Reserve Fund (SGRF) of Oman, for a general purpose private equity fund.
State Bank of Saurashtra (SBS), a wholly owned subsidiary of the Bank, amalgamated with the Bank with effect from August 13, 2008. They signed a joint venture agreement with Insurance Australia Group for undertaking General Insurance business. Also, they signed a joint venture agreement with Macquarie Capital Group, Australia and IFC, Washington for setting up an Infrastructure fund of USD 3 billion for investing in various infrastructure projects in India.
During the year 2009-10, the Bank opened 1,049 branches. In July 2009, SBI introduced 'SBI Loan to Affluent Pensioners' enabling the government pensioners to avail personal loans upto Rs 3 lakh. During the year, the Bank designed a special package, the Defence Salary Package, for personnel of the three Armed Forces i.e. the Army, Navy and Air Force who maintain their Salary accounts with them. In June 2009, the company increased their shareholding in Nepal SBI Bank Ltd to 55.02% and thus Nepal SBI Bank Ltd became a subsidiary of the Bank with effect from June 14, 2009.
In May 2010, the Bank selected consortium of Elavon Incorporation, USA and Visa International, USA as their joint venture (JV) partner for Merchant Acquiring Business. They set up a wholly owned subsidiary, namely SBI Payment Services Pvt Ltd for conducting Merchant Acquiring Business.
In August 2010, State Bank of Indore was amalgamated with the Bank as per the scheme of amalgamation approved by the Central Board.
During the year 2010-11, the Bank introduced 2 new products, namely 'Pushpa Ullas' and 'Arthias Plus' on pilot basis. They made substantial progress in establishing itself as a leading PE fund player of the country. Also, they signed a Joint Venture agreement with State General Reserve Fund (SGRF) of Sultanate of Oman, a sovereign entity, to set up a general-purpose private equity fund with an initial corpus of USD 100 million, expandable further to USD 1.5 billion.
During the year, the Bank opened 576 new branches besides merger of 470 branches of erstwhile State Bank of Indore. Also, they opened 14 foreign offices during the year, taking the total to 156. In July 1, 2010, the Bank launched their 'Green Channel Counter' at select branches across the country.
In General Insurance business, the Bank launched limited operations in April 2010 for the Corporate and Mid Corporate customers based at Mumbai, and it was expanded to six other major locations in July 2010. In the Retail segment, the Bank launched their Long Term Home Insurance business at Mumbai in October 2010, which was gradually extended to cover 56 RACPCs and RASMECCs. General Insurance SME business was launched on a pilot basis in Mumbai and Chennai in February 2011.
During the first quarter of the financial year 2011-12, the Government of India issued the 'Acquisition of State Bank of India Commercial & International Bank Ltd. vide notification dated July 29, 2011. Consequent to the said notification, the undertaking of State Bank of India Commercial & International stands transferred to and vest in State Bank of India with effect from July 29, 2011.
In 2012, State Bank of India signed a Preliminary Non-Binding Memorandum of Understanding with Russian Direct Investment Fund (RDIF), to facilitate advancing bilateral economic cooperation and trade between Russia and India aimed at exploring investment opportunities in both the countries. State Bank of India (SBI) also entered into an agreement with StarAgri Warehousing Ltd (StarAgri), India's leading agri-services & solutions provider, for Warehousing Receipt Financing and Collateral Management Services during the year under review. The bank launched virtual debit cards to check online fraud and promote e-commerce.
In 2013, State Bank of India (SBI) inaugurated its 2nd branch in China in Tianjin, a major port city in northeastern China. The bank introduced smart pre-paid card for students, blue-collar workers.
In 2014, State Bank of In-dia launched new digital Online and self-service banking solutions with support from Accenture. The bank also unveiled 6 digital branches.
In 2015, State Bank of India launched a RuPay Platinum debit card in association with National Payment Corporation of India (NPCI). The bank also introduced online facility for overdraft against FDs. SBI partners with Amazon. SBI entered into a MoU with PayPal, an American online money transfer services provider firm, for facilitating cross-border transactions. State Bank of India launched SBI eforex. SBI also launched an initiative to provide doorstep services and expedite home loans application process. State Bank of India jointly launched a cyber crime awareness campaign.
On 26 March 2015, State Bank of India (SBI) announced that consequent upon the promulgation of the Insurance Laws (Amendment) Ordinance, 2014 and subsequently passed by both the houses of parliament, the Executive Committee of the Central Board (ECCB) of the bank has decided to initiate the necessary action as per JV agreement for dilution of SBI's stake in SBI General Insurance from 76% to 51% with corresponding increase of stake of IAG from 26% to 49%, including appointment of a valuer to facilitate valuation and price discovery.
On 31 March 2015, State Bank of India (SBI) announced that the Executive Committee of the Central Board (ECCB) of the bank has authorised divestment of SBI's stake in SBI Life Insurance Co. Ltd. by up to 10%.
The Committee of Directors for Capital Raising of the bank at its meeting held on 1 April 2015 considered and accorded approval to allot 10.04 crore equity shares on preferential basis to Government of India (GoI) at an issue price of Rs 295.59 per share aggregating Rs 2969.99 crore.
The Committee of Directors for Capital Raising of the bank at its meeting held on 29 September 2015 considered and accorded approval to allot 19.65 crore equity shares on preferential basis to Government of India (GoI) at an issue price of Rs 274.37 per share aggregating Rs 5392.99 crore.
On 21 December 2015, State Bank of India announced that the Committee of Directors, duly authorized by the Board authorized the bank to raise up to Rs 12000 crore by way of issue of Basel III compliant Tier II bonds, at par, through private placement.
State Bank of India and Reliance Industries Limited (RIL) signed the shareholders agreement on 30 June 2016 for setting up Payments Bank. The Subscription and Shareholders' Agreement was signed by RIL as promoter with a 70% equity contribution and SBI as joint Venture partner with 30% equity contribution. The Payments Bank will leverage SBI's nationwide distribution network and risk management capabilities alongwith the substantial investments made by RIL in its retail and telecom businesses.
On 4 July 2016, State Bank of India announced that it has sold 5% stake in National Stock Exchange of India Limited (NSE) constituting 22.50 lakh equity shares of NSE to Veracity Investments Limited, a Mauritius based FII, at Rs 4,050 per share for a total consideration of Rs 911.25 crore. Post this transaction, SBI holds 5.19% stake in NSE while its subsidiary SBI Capital Markets Limited holds another 4.33% in the NSE.
The Committee of Directors for Capital Raising of the bank at its meeting held on 24 August 2016 authorized the bank to raise up to Rs 11100 crore Additional Tier 1 capital by way of issue of Basel III compliant Perpetual Debt instrument in USD and/or INR, at par, through private placement to overseas and/or Indian investors.
The Executive Committee of the Central Board (ECCB) of State Bank of India (SBI) at its meeting held on 14 October 2016 approved to dilute up to 5% stake of SBI in its subsidiary SBI Life Insurance Company Limited to a non-promoter entity.
On 25 October 2016, SBI announced that it has issued and allotted 25,000 AT1 Basel III compliant Non-convertible, Perpetual, Subordinated, Unsecured Debt instrument in the nature of debenture, of face value Rs 10 lakh each at par through private placement bearing coupon at 8.39% p.a. payable annually with call option after 5 years or any coupon payment date thereafter aggregating to Rs 2500 crore in third tranche.
The Executive Committee of the Central Board (ECCB) of State Bank of India at its meeting held on 9 December 2016 approved divestment of 3.9 crore equity shares constituting 3.9% stake in SBI Life Insurance Company Ltd. at a price of Rs 460 per share, subject to all regulatory approvals.
On 17 January 2017, SBI announced that it has concluded the issue of USD 500 million Fixed Rate Senior Unsecured Notes having a maturity of 5 years at a coupon of 3.25 percent payable semi-annually under Regulation-S. The bonds will be issued through the bank's London Branch and listed on Singapore Stock Exchange.
The Committee of Directors for Capital Raising of State Bank of India considered and approved on 20 January 2017 by circulation the allotment of 21.07 crores equity shares at an issue price of Rs 269.59 per share on preferential basis to Government of India aggregating Rs 5680.99 crore.
The Executive Committee of the Central Board of State Bank of India at its meeting held on 15 March 2017 accorded approval for infusing additional capital of up to Rs 1160.04 crore in credit card joint venture companies viz. SBI Cards & Payment Services Ltd. and GE Capital Business Process Management Services Ltd. through purchase of equity shares from GE Capital so as to increase the bank's stake in both the companies to 74%.
SBI merged five of its associate banks viz. State Bank of Bikaner & Jaipur, State Bank of Mysore, State Bank of Travancore, State Bank of Patiala and State Bank of Hyderabad and Bhartiya Mahila Bank with itself with effect from 1 April 2017. In February 2017, the Union Cabinet approved the acquisition by State Bank of India of its subsidiary banks namely State Bank of Bikaner and Jaipur, State Bank of Mysore, State Bank of Travancore, State Bank of Patiala and State Bank of Hyderabad.
On 8 June 2017, State Bank of India (SBI) announced closure of qualified institutional placement of equity shares. The bank successfully rose about Rs 15000 crore from issue of 52.21 crores equity shares at a price of Rs 287.25 per share to qualified institutional buyers.
The Central Board of State Bank of India at its meeting held on 27 December 2017 accorded approval to raise Additional Tier 1 capital by way of issuance of Basel III compliant debt instrument in USD and/or INR to the tune of Rs 8000 crore from domestic/international market including rupee denominated Masala Bonds till 31 March 2018.
The Executive Committee of the Central Board of State Bank of India at its meeting held on 8 January 2018 approved long term fund raising in single or multiple tranches up to USD 2 billion under Reg-S/144A, through a public offer and/or private placement of senior unsecured notes in US Dollar or any other convertible currency during FY 2018 and FY 2019.
The Executive Committee of Central Board of State Bank of India at its meeting held on 17 January 2018 approval the proposal for issuance of long term bonds of Rs 20000 crore for financing of infrastructure and affordable housing in domestic and overseas market in FY 2018 and FY 2019.
The Committee of Directors for Capital Raising of State Bank of India at its meeting held on 16 February 2018 accorded its approval for preferential allotment of 29.25 crore equity shares at Rs 300.82 per share (including a premium of Rs 299.82 per share) to Government of India (GoI) aggregating Rs 8800 crore.
Total assets of the Bank have increased by 6.55% from Rs 34,54,752.00 crore at the end of March 2018 to Rs 36,80,914.25 crore as at the end of March 2019. During the period, the loan portfolio increased by 12.97% from Rs 19,34,880.19 crore, to Rs 21,85,876.92 crore and Investments decreased by 8.86% from Rs 10,60,986.71 crore to Rs 9,67,021.95 crore as at the end of March 2019.
The Bank has one of the largest ATM networks in the world with 58,415 ATMs including Automated Deposit and Withdrawal Machines (ADWMs) as on 31 March, 2019. The Bank has 57,467 operating BCs, over 22,000 branches and 58,415 ATMs including 7,658 Automated Deposit & Withdrawal Machines (ADWMs). More than 36% of the financial transactions of your Bank are routed through ATMs/ADWMs.
As on 31 March 2020, the Bank has 61,102 operating BCs, around 22,100 branches and 58,555 ATMs including 13,270 Automated Deposit & Withdrawal Machines (ADWMs). Nearly 28% of the financial transactions of your Bank are routed through ATMs/ADWMs.
Total assets of Bank have increased by 7.35% from Rs 36,80,914.25 crore at the end of March 2019 to Rs 39,51,393.92 crore as at the end of March 2020. During the FY2020 , the loan portfolio increased by 6.38% from Rs 21,85,876.92 crore, to Rs 23,25,289.56 crore and Investments increased by 8.27% from Rs 9,67,021.95 crore to Rs 10,46,954.52 crore as at the end of March 2020.
In March 2020, as per Scheme of Reconstruction notified by the Government of India, SBI infused Rs 6,050 crore in Yes Bank Ltd., having 48.21% stake into the SBI Group and accordingly, Yes Bank Limited became an associate of the SBI Group w.e.f 14 March 2020.
During FY 2021, Bank launched three new products, viz. Agri Infrastructure Fund (AIF), Animal Husbandry Infrastructure Development Fund (AHIDF) and PM Formalisation of Micro Food Processing Enterprises (PM FME). The Bank has closed four foreign offices- Lenasia Marketing Office (South Africa), Selatar Remitance Center (Singapore), Bab-al-Bahrain Limited Service Centre (Bahrain) and its Representative Office at Istanbul (Turkey). The Bank has 22,219 branches over 71,968 Business Correspondents and over 62,617 ATMs including 13,237 Automated Deposit & Withdrawal Machines (ADWMs).
As of Mar'22, Bank has 22,266 branches, over 68,000 Business Correspondents and over 65,000 ATMs including 12,872 Automated Deposit & Withdrawal Machines (ADWMs). During FY 2022, Bank rationalized its overseas operations by a closure of an overseas Subsidiary, SBI Botswana Ltd, and merged the Ilford branch of SBI UK Ltd. with its East Ham branch.
During FY 2023, Bank opened one India Visa Application Centre (Other Offices) at Khulna (Bangladesh) and 5 branches and 3 extension counters through its overseas subsidiary in Nepal.
As of March 2023, Bank had 22,405 branches, over 76,089 Business Correspondents and over 65,627 ATMs including 12608 Automated Deposit & Withdrawal Machines (ADWMs).
State Bank of India
Chairman Speech
Bank of Choice Today and Tomorrow
Dear Shareholders,
It gives me immense pleasure to place before you the highlights of your Bank's
performance during FY2023. Details of the achievements and initiatives taken by your Bank
are provided in the Annual Report for FY2023.
ECONOMIC OVERVIEW
The past year has been another turbulent year with the global economy marred by
profound shocks and unprecedented uncertainty. The global economic growth has moderated
amidst the prolonged Russia-Ukraine war, even though the effect of the pandemic has
receded. Food and energy price shocks affected the general prices, with wage- price spiral
leading to elevated inflation across countries. The recent failures of banks in the United
States are a reminder of the challenges posed by the interaction between tighter monetary
and financial conditions and the buildup in vulnerabilities. Though inflation has receded
with central banks raising interest rates, underlying price pressures are proving sticky,
with labor markets being tight in several economies. In parallel, debt levels remain high,
limiting the ability of fiscal policymakers to respond to new challenges. Commodity prices
have moderated, but the elevated geopolitical tensions are the key risks. However, earlier
than expected opening of China is easing supply chain disruptions and renewing hopes for
moderate economic recovery. As per IMF projections, world growth will bottom out at 2.8%
this year before rising modestly to 3.0% in 2024.
Against this backdrop of global uncertainties, Indian economy has remained resilient
with robust agriculture and services sector. Meanwhile, on the external front, exports of
goods and services reached new heights supported by strong demand of Indian services.
India's GDP in FY2023 grew at 7.2%, driven by buoyant investment and private consumption.
Looking ahead, real GDP growth is projected at 6.5% in FY2024 (RBI), with economic
activity backed by improving rural demand, the Government's thrust on infrastructure
spending, revival in corporate investment, healthy bank credit, and moderating commodity
prices.
YOUR BANK'S PERFORMANCE
During the year FY2023, your Bank's business grew at a faster pace than the banking
industry, both in deposits and credit.
Deposits
In FY2023, the whole Bank deposits grew by 9.19% YoY to Rs 44.23 Lakh Crore, of which
domestic deposits increased by 8.50% to Rs 42.53 Lakh Crore and foreign offices deposits
by 29.60% to Rs 1 .70 Lakh Crore. CASA deposits grew by 4.95% to Rs 1 8.62 Lakh Crore and
CASA ratio of your Bank is at 43.80% as of March FY2023. Current account deposits grew by
7.47%, while saving bank deposits grew by 4.51%. Your Bank has opened 1.24 Crore Regular
Savings Bank Accounts, of which 64% accounts were acquired digitally through YONO during
FY2023.
Credit
Your Bank's gross advances grew by 15.99% to Rs 32.69 Lakh Crore, compared to a growth
of 11.0% in FY2022. While domestic advances grew by 15.38% to Rs 27.76 Lakh Crore, foreign
offices advances grew by 19.55% to Rs 4.92 Lakh Crore. You will be happy to know that your
Bank's domestic advances growth (15.38%) is higher than the banking industry's growth of
15.0% in FY2023, led by robust growth in all the sectors. Among all the business segments,
retail personal loans registered the highest YoY growth of 17.64% touching Rs 1 1.79 Lakh
Crore followed by SME advances which grew by 17.59% to Rs 3.59 Lakh Crore. Agri &
Corporate loans registered a YoY growth of 13.31% to Rs 2.58 Lakh Crore and 12.52% to Rs
9.79 Lakh Crore, respectively.
The 3-year CAGR of retail personal loans indicate a 16.0% growth and now accounts 42.5%
of domestic advances in FY2023. Among the retail personal loans, Xpress credit loans
crossed the Rs 3 Lakh Crore mark, with YoY growth of 22.72% to Rs 3.04 Lakh Crore in
FY2023. Home loans and Auto loans, grew by 14.07% to Rs 6.41 Lakh Crore and 23.22% to Rs
97,523 Crore respectively during FY2023. As on March 2023, your Bank's market share in
Home loans and Auto loans is at 33.1% and 19.4% respectively.
Investment
With the interest rate hikes across the globe to tame inflation, your Bank's prudent
investment decisions helped contain the impact of rising interest rates on the investment
portfolio. Your Bank's investment portfolio increased by 6.3% to Rs 1 5.87 Lakh Crore in
FY2023, of which 96% are domestic investments. Within the domestic investment portfolio,
62.94% is in HTM category while the rest is under AFS & HFT category. The yield on
investment at 6.51% is in line with the interest rate scenario of FY2023. Your Bank's
liquidity position remains comfortable, and it is well-placed to handle any moderation in
liquidity.
Your Bank has registered significant improvements on the asset quality front, provision
coverage ratio, RoE/RoA, NII and NIM, while also giving highest standalone profit in
FY2023 by any listed corporate, domestically.
Profitability
During FY2023, your Bank optimally leveraged the opportunities inherent in the
resurgent and resilient Indian economy. Buoyed by relentless pursuit of best practices and
strategies across niche segments, the standalone net profit during FY2023 rose by over 58%
to Rs 50,232 Crore from previous year's net profit of Rs 31,676 Crore (FY2022). Your Bank
has registered significant improvements on the asset quality front, provision coverage
ratio, RoE/RoA, NII and NIM, while also giving highest standalone profit in FY2023 by any
listed corporate, domestically.
The Net Interest Income (NII) of your Bank registered a robust growth of 19.99% over
the previous year at Rs 1 ,44,841 Crore in FY2023 (Rs 1 ,20,708 Crore in FY2022). Lending
book grew across all segments and remained adequately diversified with traditional
bastions like Xpress credit and Housing loans growing handsomely, all contributing to
higher interest income. Control in slippages and moderation in credit costs showed marked
improvements. Credit costs further improved by 23 basis points to 0.32%, continuing its
momentum. Total provisions made during FY2023 stood at Rs 33,481 Crore, falling 7.51% (Rs
2717 Crore) over FY2022 level. The operating profit of your Bank during FY2023 stood at Rs
83,713 Crore, a marked improvement of 11.18% over FY2022 (Rs 75,292 Crore that had grown
by 5.22%). The cost to income ratio increased by 56 basis points in FY2023 (over FY2022),
though standing a little elevated at 53.87 for the FY2023 against 53.31 (FY2022) due to
higher provisions on account of wage hike negotiations.
Return on Assets (RoA) for Q4 FY2023 stood at 1.23% (0.96% for the full FY2023 against
0.67% for FY2022), signalling that the journey towards guidance of ROA of 1%+ was on track
with continuous improvement in ROA from FY2020 onwards. Return on Equity (RoE) showed
marked improvement of 551 basis points, rising to 19.43% for the FY2023 against 13.92%
during FY2022 (as against improvement of 398 basis points displayed in FY2022).
Capital
The capital ratios of the Bank continued to improve during the financial year on the
back of better planning, plough back of profit, and efficient risk management of the
banking book. The CET-1 ratio improved by 33bps to reach 10.27% as of March 2023.
The overall Capital Adequacy Ratio (CAR) as at the end of March 2023 stands at 14.68%,
improving by 85 bps YoY. With healthy profits in FY2023, the capital position of the Bank
remains comfortable to tap future growth opportunities.
Dividend
I am happy to announce that the Board of your Bank has declared a dividend of Rs 1 1.30
per equity share (i.e. 1130%) for the financial year ended March 31, 2023.
Asset Quality
The focus on asset quality and containing risk has been an area of continued attention
for the Bank. There was a broad-based improvement in the asset quality of your Bank in
FY2023. The gross non-performing assets (NPA) of the Bank dropped by 119 bps YoY and stood
at 2.78% as of March 2023. The net NPA ratio accordingly stands at 0.67% as of March 2023
down 35 bps YoY.
Slippage, which indicates the incremental fall in credit quality during the year, was
down by 26.38% compared to FY2022 and as a result, the slippage ratio for FY2023 improved
by 34 bps YoY reaching 0.65% as of March 2023.
The proactive management of risk during the year resulted in improvement in Provision
Coverage Ratio (PCR) by 135 bps YoY, standing at 76.39% by the close of financial year.
Customer Centricity
At SBI, customer-centricity is of paramount importance, and we undertake a proactive
and flexible approach to cater to the changing financial needs of our customers.
We employ cutting-edge technology and new solutions to offer seamless and efficient
banking experiences, keeping our finger on the pulse of market developments. Our objective
is to significantly increase our presence across the country and penetrate deeper into new
regions to ensure that all our customers have access to our services.
Our multichannel delivery model - digital, mobile, ATM, internet, social media and
branches, offer customers a wide choice to carry out their transactions, as per their
convenience at any time and place. Your Bank has one of the largest ATM networks in the
country, with 65,627 ATMs, including Automated Deposit and Withdrawal Machines (ADWMs), as
on March 31, 2023. On an average, ~1.3 Crore transactions are recorded every day at your
Bank's ATMs/ADWMs and 5.66 Lakh cash deposit transactions at ADWMs.
Your Bank has established a centralised dedicated cell, CLIC (Customer Liability
Identification Centre), across all 17 circles. This cell expedites the resolution of
complaints related to unauthorised electronic debit transactions (UAED), ensuring a swift
and efficient customer experience.
To ensure optimal service quality, incognito visits were carried out at various
branches. These visits assessed various aspects such as infrastructure availability, staff
readiness, and overall branch activity.
To improve customer convenience and ease of banking, your Bank is extending doorstep
banking services through agents to all customers at the top 100 banking centres. Senior
Citizens more than 70 years of age and differently abled persons are being extended
doorstep banking services at all banking centres.
With a presence across all time zones through its 235 points of presence in 29
countries, your Bank has gradually spread its wings globally and has become a pioneer of
International Banking among the Indian banks. During FY2023, your Bank has opened one
India visa application centre at Khulna (Bangladesh) and 5 branches and 3 extension
counters through its overseas subsidiary in Nepal.
Technology & Innovation
Your Bank uses technology in every aspect of the value proposition - from business,
designing products, streamlining processes, and improving delivery, to monitoring. Your
Bank has taken several initiatives to build a quality SME portfolio in a risk-mitigated
manner and has implemented significant changes to ensure ease of banking.
YONO Business combines all corporate banking needs by being a one-stop solution for the
customer. Your Bank deploys the most advanced technologies like artificial intelligence,
machine learning and business analytics, among others, to augment its product offerings to
enhance customer delight each time, without exception. Under YONO, PreApproved Business
Loan (PABL) has recorded a YoY growth of 1076% to Rs 3,605 Crore in FY2023.
Following initiatives have been implemented during the year:
1. New digital products under development in collaboration with Fintech/ AA/ GST
MSME SAHAJ Seller's Invoice Financing on Yono Business providing digital loan and
financing of GST invoice Seller's Invoice Financing Scheme under GST Sahay, a GoI
initiative, provides digital loan through GST Sahay app, which is a marketplace.
2. Contactless Lending Platform (CLP):
Your Bank is one of the stakeholders in SIDBI-led PSB Consortium, which offers SMEs
quick and simple access to loans through CLP platform psbloanin59minutes.com. Eligible
proposals receive instant in-principle approval based on GST returns, IT returns and
account statements.
For FY2023, your Bank has already sanctioned 6,342 leads worth Rs 2,940.24 Crore, with
ticket size ranging from Rs 1 Lakh to Rs 5 Crore.
To facilitate digitalisation and streamline the issuance of credit, a new mechanism for
the auto-renewal of leads obtained from CLP has been launched. This approach will
guarantee the prompt renewal of accounts considered good and financially satisfactory,
with minimal need for manual work. It allows Relationship Managers (SME) to concentrate on
sales and marketing activities.
3. Assisted Journey for ETCB/ NTCB/ NTB Customers
The Assisted Journey allows operating functionaries such as RM (SME) team, field
officers and Branch Managers to initiate the CLP journey on behalf of the customer without
needing them to input any details. These can be uploaded directly on the portal.
4. Supply Chain Finance
By leveraging technology and branch network, your Bank has been a major player in
supply chain finance while strengthening corporate relationships across sectors. During
FY2023, supply chain finance was extended to 34,592 dealers with total sanctioned limits
of over Rs 44,565 Crore e-DFS (Electronic Dealer Financing Scheme) and Rs 1 6,437 Crore
e-VFS (Electronic Vendor Financing Scheme) respectively.
Your Bank entered into 16 new e-DFS and 37 new e-VFS tie-ups during the year. Your Bank
has already implemented CLP for e-DFS and e-VFS. Your Bank has also simplified the e-VFS
processes and built a new digital interface "psbloansin59minutes.com" on CLP for
improved customer experience. It has also introduced Supply Chain Finance Centralised
Processing Centres to reduce TAT for proposal processing. To ring-fence the supply chain
portfolio, it has implemented suitable risk mitigation measures and risk-based pricing.
Your Bank is also launching various campaigns for onboarding dealers/ vendors and
broadening the channel finance base.
Your Bank is the first Public Sector Bank to register as a financier on the TReDS
platform and is present on all the three TReDS platforms in the country -RXIL, Ml Exchange
and Invoicemart, to provide finance to MSMEs. In FY2023, your Bank has discounted 26,973
bills amounting to Rs 9,800 Crore, registering a YoY growth of 144%.
To further penetrate the agriculture and rural market, your Bank has floated State Bank
Operations Support Services (SBOSS), which is expected to help your Bank reach out to a
larger populace, coupled with improved efficiency in sourcing and renewal of KCC loans.
Your Bank is actively looking to partner with agri-techs and start-ups to cater to the
financial needs across the agriculture value chain. Your Bank has opened specialised
Start-up branches at Bengaluru, Mumbai, Delhi and Chennai to offer one-stop solutions to
Start-ups.
In order to make banking more convenient for customers, your Bank has introduced the
V-CIP digital process, which allows account opening from home, eliminating the need to
visit branches. During FY2023, 4.70 Lakh customers joined us through V-CIP.
As a result of the various initiatives taken by your Bank, 64% of total Regular Savings
Bank Accounts have been opened digitally during FY2023.
Your Bank has ensured customer convenience and portfolio growth by offering a
comprehensive range of products on multiple platforms, with higher profit margins. YONO
offers digital loans in real-time, eliminating the need for physical documentation or
visiting a branch. Additionally, real-time pre-approved personal loan eligibility by
sending SMS has been introduced.
Key initiatives during the FY on ATMs/ ADWMs front chiefly include:
• Implementing Enhanced cash dispensation logic for small denomination notes at
all Bank's ATMs.
• OTP based Cash withdrawal - addition of new feature - 30 sec Timer display on
ATM screen to make customer aware about the time available for entering the OTP and avoid
time out.
• Pro-active reversal of failed transactions to customers.
• Installation of 15000 new GCC machines.
• Cassette Swap has been implemented in 12907 Branches managed by CAPEX ATMs/
ADWMs
• 49,719 sites have been covered under electronic surveillance solutions (eSS)
• SMS is being sent to customers for availing free Balance Enquiry & Mini
Statement from SBI ATMs and the above services are also available on WhatsApp banking.
• Replacement of 3,250 old SWAYAM machines has been completed.
• Display of "Cash not available" on ATM Screen whenever the ATMs are
out of Cash (Before the transactions are undertaken by the customers).
Your Bank has deployed 20,137 Barcode Based Passbook Printing Kiosks (SWAYAMs) at
17,643 branches and 13 lakh transactions are processed on daily basis, migrating ~3.65
Crore passbook printing transactions every month from branch counters. Your Bank has also
deployed 33,077 GCC terminals at 21,446 retail branches for transactions through debit
cards to promote Green Banking. To combat the Cybercrimes, Ministry of Home Affairs has
rolled out cybercrime reporting Portal with dedicated email (www.cybercrime.gov. in) and a
helpline number 1930 to report the cybercrime incidents by the victims. Cybercrime cells
at 17 circles of your Bank work in multiple shifts to attend to customer complaints
concerning cyber frauds.
As on 31.03.2023, a total of 3,04,450 complaints have been attended, and an amount of
Rs 51.50 Crore has been put on hold.
Financial Inclusion
Your Bank has taken significant steps to promote financial inclusion through a vast
network of Business Correspondents (BCs)/Customer Service Points (CSPs). As on 31st
March 2023, your Bank has 76,089 CSPs, providing access to 32 banking products and
services in unbanked areas while reducing footfalls in the branches. The BC/CSP channel
has recorded around 53.32 Crore transactions amounting to Rs 3,30,389 Crore during FY2023.
On an average, around 25-30 Lakh transactions per day are routed through the BC/CSP
channel.
The BC/CSP channel has opened 14.69 Crore BSBD accounts with Rs 50,091 Crore deposits
and has brought the unbanked/underprivileged sections of society within the ambit of the
formal Banking system by promoting various social security schemes, low-cost
microinsurance products (PMJJBY, PMSBY) and pension schemes (APY).
Your Bank is the undisputed market leader in customer enrolment for
government-sponsored social security schemes viz, PMJJBY, PMSBY and APY. The share of
banks in PMJJBY, PMSBY and APY are 43.83%, 40.85% and 31.78% respectively, among all
Public Sector banks. During FY2023, your Bank has achieved 27.88 Lakh APY enrolments as
against the target of 17.90 Lakh allotted by PFRDA (~156% of the target), simultaneously
winning major awards from the PFRDA under various APY campaigns.
Environmental, Social & Governance (ESG) Practices
We believe that our success is intertwined with the prosperity of the society we serve,
and therefore, we actively engage in initiatives focused on education, healthcare,
environmental sustainability, and community development. By embracing corporate social
responsibility, we strengthen our bond with stakeholders, foster inclusive growth, and
contribute to building a better and more equitable future for all.
For FY2023, an amount of Rs 316.76 Crore has been allocated for undertaking CSR
activities by your Bank. Out of which, an amount of Rs 1 94.78 Crore is allocated to SBI
Foundation for undertaking CSR activities in project mode.
Your Bank has developed an ESG financing framework aligned with sustainable finance
guidelines and principles. This framework serves as a guide for our future bond and loan
issuance programs, ensuring that proceeds are used to finance or refinance eligible assets
and projects with environmental or social benefits. It has received a Second Party Opinion
to validate its robustness and adherence to policy prescriptions.
To promote ESG and to underscore the Bank's longstanding commitment to supporting green
and social projects, your Bank concluded its largest inaugural Syndicated Social loan of
$1 billion ($500 million + green shoe of $500 million) making it the largest ESG loan
raised by a commercial Bank in the Asia-Pacific market.
Taking cognizance of the importance of managing the efficiency of our owned facilities,
your Bank is making continuous efforts to develop a green ecosystem. Under this
initiative, your Bank's prominent establishments viz Corporate Office, Global IT Centre
and 6 of the Local Head Offices (LHOs) have shifted to green power through green tariff
policy or through open access channels via solar/wind.
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,
KfW German Development Bank etc., for onward lending to RE power developers.
Strategic New Initiatives
During FY2023, your Bank has continued undertaking strategic initiatives to achieve the
long-term objectives set by the Bank. Some of the important initiatives are:
• In line with government policies on electric mobility, your Bank has partnered
with Tata Power to set up EV charging facilities at various identified premises, including
our corporate office, local head offices, and residential premises across the country.
This initiative promotes sustainable mobility and encourages the use of electric vehicles
among our employees.
• As a part of its commitment to sustainable development, your Bank has
incorporated rooftop solar photo voltaic systems financing as a component of the home loan
project cost. This, coupled with an extensive micro market study and the opening of 133
processing centres across India have enabled greater penetration of home loans in Tier-II
and Tier-III cities.
• Furthermore, IT has developed 'SBI- Easy ride', an end-to-end digital product
which enables two-wheeler financing without the need to visit any branch for sanction or
disbursement.
• In case of personal loan products, your Bank has integrated Digital Document
Execution into Xpress Credit loans, utilising e-stamping and e-signature for real-time
document execution to make it customer-centric.
• For the benefit of its NRI clientele, your Bank has launched a number of
services in FY2023 including tie- up with 'Remitly' to facilitate swift remittance to
India, remittance facility using UPI Application, launch of NRE non-callable deposit
scheme, increase of daily limit for forex outward remittances through FX-Out (INB Channel)
from NRE Account to US$ 25000, among others.
• Your Bank has introduced SBI e-Forex facility in the YONO Business - Android app
to enable customers to book foreign exchange rates on the go. The same is expected to be
rolled out shortly for the iOS platform as well.
• External benchmark (T-Bill Rate) linked interest rates have been rolled out to
WCL and LC Bill Discounting facilities to incentivise top-rated borrowers and encourage
the utilisation of their limits. To stay competitive, this option is even offered for
Rupee Export Packing Credit facilities.
• Project Kuber was launched in your Bank, which is driving a special focus on
marketing of current account deposits and various transaction banking products in CCG
vertical.
• Your Bank recognises the contribution of its ex-employees, whose dedicated
lifelong services brought your Bank to its present height. It initiated 'Project SBI
Cares' for automation and streamlining of various pre-retirement and post-retirement
benefits and processes through its HRMS portal.
• Further, your Bank has adopted a branch-based model for manpower planning linked
to productivity parameters at the branches.
• Your Bank has been at the forefront of launching various innovative solutions.
Some of the initiatives taken during the year include development of Internal Financial
Controls over Financial Reporting (IFCoFR) Portal, a dashboard for monitoring of gold
retention limit, and new features in SBI Digi Vault Application.
• Your Bank has launched a Fund Management Solution to meet the requirements of
Government of India pertaining to Centrally Sponsored Schemes (CSS) under Single Nodal
Account (SNA) covering 433 schemes of 23 States/UTs and Central Sector Scheme through
Central Nodal Account (CNA) mechanism covering 124 schemes.
Subsidiaries
Through its subsidiaries, your Bank provides a complete bouquet of financial products
and services to its customers.
On a consolidated basis, SBI Capital Markets Limited has posted a profit after tax
(PAT) of Rs 725.39 Crore for FY2023 as against Rs 635.42 Crore in the previous year.
SBICAP Securities Limited (SSL), a wholly owned subsidiary of SBI Capital Markets Limited
and broking arm of the SBI Group posted a net profit of Rs 308 Crore during the year ended
FY2023 as against Rs 233 Crore in FY2022.
With a total Gross Written Premium (GWP) of Rs 1 0,888 Crore and a YoY growth of 18%,
the SBI General Insurance Company Limited achieved the milestone of Rs 1 0,000 Crore GWP
in FY2023. SBI General increased its market share from 4.15% in FY2022 to 4.21% in FY2023.
The company's presence has grown from 17 locations in 2011 to over 141 branches across
India. The company has served over 34 Crore clients to date, with claims of Rs 22,000
Crore handled.
SBI Life Insurance Company Limited has proven its market leadership in the year ended
March 31, 2023, with numero- uno position in Individual New Business Premium, Individual
Rated Premium, Total Rated Premium and Total New Business Premium among the private
insurers. The company witnessed growth in Individual New business premium of 26.7%
vis-a-vis the industry growth of 15.4% with a private market share of 24.3% & Industry
market share of 14.5%. The company generated a PAT of Rs 1 ,721 Crore in FY2023 against Rs
1 ,506 Crore in FY2022.
SBI Cards and Payment Services Limited registered PAT of Rs 2,258 Crore in FY2023 as
compared to Rs 1 ,616 Crore in FY2022, an increase of 40% YoY.
SBI Funds Management Limited is the fastest growing AMCs with a growth of over 10.83%
against the industry average of 5.55% in FY2023. It has one of largest investor bases with
over 121.80 Lakh live investor folios with about 27 Lakh new investor folios added in
FY2023. The company posted a PAT of Rs 1 ,331.20 Crore for FY2023 as against Rs 1 070.65
Crore earned during FY2022.
SBI Global Factors Limited, a leading NBFC factor providing both Domestic and Export
Factoring services under one roof, registered a turnover of Rs 5,544 Crore for FY2023 as
compared to turnover of Rs 4,773 Crore in FY2022.
SBI Pension Funds Private Limited has earned net profit of Rs 53.51 Crore for FY2023.
The total Assets Under Management (AUM) of the company as on 31st March 2023 is
Rs 3,39,006 Crore (YoY growth of 20.01%). The company maintains lead position among 10
PFMs in terms of AUM with market share of 37.71%.
Awards and Recognition
Your Bank's efforts in various areas of banking were acknowledged and many awards and
recognitions were received during the year. Your Bank was awarded ET BFSI Best Brands
award for 2022 and 2023. The Global Finance Magazine also awarded "The Best Bank
Award 2022".
Your Bank has been awarded by ET HR World Future Skill Awards, 'Gold' under the
category 'Best Learning Management System' for Gyanodaya "e-learning" and
askSBI, and 'Silver' under the category "High Impact Certification Programme"
for Role Based Certifications. In HR policies, your Bank received 3-Gold Awards at ET
Human Capital Awards, namely HR Leader of the Year - Large Scale Organisations; Excellence
in Business Continuity Planning & Management and Most Valuable Employer during
COVID-19.
Your Bank was adjudged the "Winner", for the fourth year in succession, in
Best Digital Financial Inclusion category among Large Banks in IBA Annual Banking
Technology Awards 2022. In home loans, Government of India awarded "Best Performing
Bank under CLSS" under 'PMAY-U Awards 2021: 150 Days Challenge'.
ICAI recognized your Bank's financial reporting standards by awarding the Gold
Shield-Category-I for Public Sector Banks- FY 2021-22. Additionally, your Bank also bagged
"India's Best Annual Report Awards 2022.
For its ESG initiatives, your Bank has been awarded CDP score of "B", the
highest score in the last 5 years by CDP (formerly Carbon Disclosure Project), the global
disclosure system for companies to manage their environmental impact. The score of B
represents that the organisation has addressed the environmental impact of their business
and has ensured good environmental management.
Your Bank was awarded "Issuer of the Year Private Placement" at the 5th National
Summit & Awards on Corporate Bond Market 2022 by Associated Chambers of Commerce and
Industry of India (ASSOCHAM). Further, NASSCOM
DSCI Excellence Awards 2022 awarded "Best Security Awareness and "Best
Security Operations Centre of the year".
Way Forward
Overall FY2023 has been a good year for the Bank. Despite the geopolitical headwinds,
resurgence of COVID-19 in China, Indian economy showed remarkable resilience and the same
reflects in your Banks financials.
Nevertheless, last financial year was not without its share of surprises. The episodes
of financial instability in the US and European banking took markets by surprise but did
not impact the Bank. However, vulnerabilities may emerge as interest rates normalise from
their ultra-low levels. This warrants proactive identification and mitigation of risk in
the current financial year.
Your Bank has had a healthy run of reporting robust financial results successively for
the last three years. Despite the challenges, your Bank's ability to absorb unexpected
losses has improved. Healthy internal accruals reinforce its ability to tap capital
markets, if warranted, in future. Risk management practices have been strengthened over
the years and incremental improvements remain a perpetual work in progress.
Accommodating environment induced financial risk in the bank's overall risk management
strategy is the next milestone that the Bank will aim for in FY2024. It is widely expected
that RBI will make tangible progress in this direction during this financial year. Your
Bank remains committed to incorporating principles and practices that promote sustainable
banking operations and the same reflects in our CDP score of "B" for FY2022,
highest in last five years.
The conscious strategy to structurally transform your Bank through digitisation of
systems and process has progressed well. The Bank's flagship digital offering SBI YONO has
shown growth across products and business lines. The Bank aims to be agile and imaginative
in respect of its digital offerings so that YONO becomes a "Primary digital bank of
choice" in coming years.
The use of business analytics and AI/ ML in decision making and operations will be
taken to the next logical level by deploying NextGen Data Warehouse and Data Lake.
Mutually beneficial partnerships with fintechs and NBFCs under RBI's co-lending framework
will be explored.
Your Bank is comfortably placed in terms of growth capital in the current year. With
declining credit cost, opportunities for lending in sunrise sectors such as sectors
identified under PLI scheme, renewables as well as electric mobility will be explored to
diversify the portfolio. The RBI's guidelines on green deposits opens new opportunities on
the liability side to green the Bank's balance sheet.
Summing up, despite the economic headwinds, your Bank has innovated well to respond to
the challenges posed by the operating environment. I am more than hopeful that the
performance achieved in FY2023 will continue in FY2024.
"Innovation is the ability to see change as an opportunity- not as a threat"
| Yours Sincerely, |
| Dinesh Kumar Khara |
  Â
State Bank of India
Company History
State Bank of India was incorporated on 01 July 1955. The Government of India nationalized the Imperial Bank of India in year 1955, with Reserve Bank of India taking a 60% stake, and name was changed to State Bank of India. State Bank of India is an Indian multinational, public sector banking and financial services institution.
Headquartered in Mumbai, SBI provides a wide range of products and services to individuals, commercial enterprises, large corporate, public bodies, and institutional customers through its various branches and outlets, joint ventures, subsidiaries, and associate companies.
The Bank operates in four business segments, namely Treasury, Corporate/ Wholesale Banking, Retail Banking and Other Banking Business. The Treasury segment includes the investment portfolio and trading in foreign exchange contracts and derivative contracts. The Corporate/ Wholesale Banking segment comprises the lending activities of Corporate Accounts Group, Mid Corporate Accounts Group and Stressed Assets Management Group. The Retail Banking segment consists of branches in National Banking Group, which primarily includes personal banking activities, including lending activities to corporate customers having banking relations with branches in the National Banking Group.
SBI provides a range of banking products through their vast network of branches in India and Overseas, including products aimed at NRIs. The State Bank Group, with over 22,266 branches, has the largest banking branch network in India. The State Bank of India is the 10th most reputed company in the world according to Forbes.
The Bank has 227 overseas offices spread over 30 countries. They have 22,414 branches of the parent in Colombo, Dhaka, Frankfurt, Hong Kong, Johannesburg, London and environs, Los Angeles, Male in the Maldives, Muscat, New York, Osaka, Sydney, and Tokyo. They have Offshore Banking Units in the Bahamas, Bahrain, and Singapore, and Representative Offices in Bhutan and Cape Town.
In the year 2001, the SBI Life Insurance Company was started by the Bank. It is the only Bank that has been permitted 74% stake in the insurance business. The Bank's insurance subsidiary 'SBI Life Insurance Company' is a joint venture with Cardif S.A in which Cardif holds 26% of the stake.
During the year 2005-06, the bank introduced 'SBI e-tax' an online tax payments facility for direct and indirect tax payment. They also launched the centralized pension processing. The Bank made a partnership with Tata Consultancy Services for setup C-Edg Technologies and consulting services to the banking, financial services and insurance industry. The bank was noted as 'The most preferred bank' in a survey by TV18 in association with AC Nielsen-ORG Marg. Also, the Bank was voted as 'The most preferred housing loan provider' in AWAAZ consumer awards for the year 2006.
In the customer loyalty survey 2006-07 conducted by 'Business World', the Bank was ranked number one in all parameters of customer satisfaction, service orientation, customer care/ call center, and customer's loyalty and home loans. SBI Funds was judged 'Mutual fund of the year' by CNBC/TV-18/CRISL. The Bank introduced new products and services such as web-based remittance, instant fund transfer, online-trading and comprehensive cash management.
During the year 2007-08, the Bank launched 965 branches all over the country. They inaugurated a new state-of-the art Dealing Room with online connectivity to all active forex intensive Branches at Corporate Centre in Mumbai. They launched a new product, Construction Equipment Loan to cater to construction Companies. Also, they introduced new products such as SBI Reverse Mortgage Loan and SBI Home Plus in the areas of Home Loans.
During the year, the RBI transferred their entire shareholding in the Bank representing 59.73% of the issued capital of the Bank to the Government of India. The Bank acquired 92.03% of equity of Global Trade Finance Ltd. Consequently; GTFL became a subsidiary of the Bank. They signed an MoU with the Indian railways for installing ATMs at 682 railway stations. In March 2008, the Bank opened their 10,000th branch and became only the second bank in the world to have more than 10,000 branches after China's ICBC.
During the year 2008-09, the company launched Import factoring, a new product in association with SBI Factors & Commercial Services Ltd. They increased the number of branches for retail sale of gold coins from 250 to 518. Also, they re-launched Gold Deposit Scheme at 50 branches to mobilize gold from domestic market for deployment as metal loans to jewellers.
During the year, the Bank opened their 11,111th Branch at Sonapur (Kamrup District) in Assam. They introduced three new products viz., SBI Special Home Loan, SBI Happy Home Loan and SBI Lifestyle in response to the stimulus package announced by the Government of India. Also, they entered into an exclusive arrangement with Tata Motors for handling the booking process of Tata 'Nano' cars.
During the year, the Bank launched on their website an on-line application form for registering Auto Loan enquiries and expeditiously monitoring and converting these leads into Auto Loans. Also, they launched 'e-invest' for the ASBA (applications supported by blocked accounts) to aid investors for their equity subscriptions, IPO and Rights applications.
During the year, the Bank set up a custodial services company namely SBI Custodial Services Pvt. Ltd., in joint venture with Societe Generale, France. They signed letter of intent for setting up of joint venture company for undertaking General Insurance Business. Also, they divested 10% equity stake in its wholly owned subsidiary SBI Pension Fund Pvt. Ltd at cost in favour of its subsidiaries. In October 2008, the Bank signed an MoU with State General Reserve Fund (SGRF) of Oman, for a general purpose private equity fund.
State Bank of Saurashtra (SBS), a wholly owned subsidiary of the Bank, amalgamated with the Bank with effect from August 13, 2008. They signed a joint venture agreement with Insurance Australia Group for undertaking General Insurance business. Also, they signed a joint venture agreement with Macquarie Capital Group, Australia and IFC, Washington for setting up an Infrastructure fund of USD 3 billion for investing in various infrastructure projects in India.
During the year 2009-10, the Bank opened 1,049 branches. In July 2009, SBI introduced 'SBI Loan to Affluent Pensioners' enabling the government pensioners to avail personal loans upto Rs 3 lakh. During the year, the Bank designed a special package, the Defence Salary Package, for personnel of the three Armed Forces i.e. the Army, Navy and Air Force who maintain their Salary accounts with them. In June 2009, the company increased their shareholding in Nepal SBI Bank Ltd to 55.02% and thus Nepal SBI Bank Ltd became a subsidiary of the Bank with effect from June 14, 2009.
In May 2010, the Bank selected consortium of Elavon Incorporation, USA and Visa International, USA as their joint venture (JV) partner for Merchant Acquiring Business. They set up a wholly owned subsidiary, namely SBI Payment Services Pvt Ltd for conducting Merchant Acquiring Business.
In August 2010, State Bank of Indore was amalgamated with the Bank as per the scheme of amalgamation approved by the Central Board.
During the year 2010-11, the Bank introduced 2 new products, namely 'Pushpa Ullas' and 'Arthias Plus' on pilot basis. They made substantial progress in establishing itself as a leading PE fund player of the country. Also, they signed a Joint Venture agreement with State General Reserve Fund (SGRF) of Sultanate of Oman, a sovereign entity, to set up a general-purpose private equity fund with an initial corpus of USD 100 million, expandable further to USD 1.5 billion.
During the year, the Bank opened 576 new branches besides merger of 470 branches of erstwhile State Bank of Indore. Also, they opened 14 foreign offices during the year, taking the total to 156. In July 1, 2010, the Bank launched their 'Green Channel Counter' at select branches across the country.
In General Insurance business, the Bank launched limited operations in April 2010 for the Corporate and Mid Corporate customers based at Mumbai, and it was expanded to six other major locations in July 2010. In the Retail segment, the Bank launched their Long Term Home Insurance business at Mumbai in October 2010, which was gradually extended to cover 56 RACPCs and RASMECCs. General Insurance SME business was launched on a pilot basis in Mumbai and Chennai in February 2011.
During the first quarter of the financial year 2011-12, the Government of India issued the 'Acquisition of State Bank of India Commercial & International Bank Ltd. vide notification dated July 29, 2011. Consequent to the said notification, the undertaking of State Bank of India Commercial & International stands transferred to and vest in State Bank of India with effect from July 29, 2011.
In 2012, State Bank of India signed a Preliminary Non-Binding Memorandum of Understanding with Russian Direct Investment Fund (RDIF), to facilitate advancing bilateral economic cooperation and trade between Russia and India aimed at exploring investment opportunities in both the countries. State Bank of India (SBI) also entered into an agreement with StarAgri Warehousing Ltd (StarAgri), India's leading agri-services & solutions provider, for Warehousing Receipt Financing and Collateral Management Services during the year under review. The bank launched virtual debit cards to check online fraud and promote e-commerce.
In 2013, State Bank of India (SBI) inaugurated its 2nd branch in China in Tianjin, a major port city in northeastern China. The bank introduced smart pre-paid card for students, blue-collar workers.
In 2014, State Bank of In-dia launched new digital Online and self-service banking solutions with support from Accenture. The bank also unveiled 6 digital branches.
In 2015, State Bank of India launched a RuPay Platinum debit card in association with National Payment Corporation of India (NPCI). The bank also introduced online facility for overdraft against FDs. SBI partners with Amazon. SBI entered into a MoU with PayPal, an American online money transfer services provider firm, for facilitating cross-border transactions. State Bank of India launched SBI eforex. SBI also launched an initiative to provide doorstep services and expedite home loans application process. State Bank of India jointly launched a cyber crime awareness campaign.
On 26 March 2015, State Bank of India (SBI) announced that consequent upon the promulgation of the Insurance Laws (Amendment) Ordinance, 2014 and subsequently passed by both the houses of parliament, the Executive Committee of the Central Board (ECCB) of the bank has decided to initiate the necessary action as per JV agreement for dilution of SBI's stake in SBI General Insurance from 76% to 51% with corresponding increase of stake of IAG from 26% to 49%, including appointment of a valuer to facilitate valuation and price discovery.
On 31 March 2015, State Bank of India (SBI) announced that the Executive Committee of the Central Board (ECCB) of the bank has authorised divestment of SBI's stake in SBI Life Insurance Co. Ltd. by up to 10%.
The Committee of Directors for Capital Raising of the bank at its meeting held on 1 April 2015 considered and accorded approval to allot 10.04 crore equity shares on preferential basis to Government of India (GoI) at an issue price of Rs 295.59 per share aggregating Rs 2969.99 crore.
The Committee of Directors for Capital Raising of the bank at its meeting held on 29 September 2015 considered and accorded approval to allot 19.65 crore equity shares on preferential basis to Government of India (GoI) at an issue price of Rs 274.37 per share aggregating Rs 5392.99 crore.
On 21 December 2015, State Bank of India announced that the Committee of Directors, duly authorized by the Board authorized the bank to raise up to Rs 12000 crore by way of issue of Basel III compliant Tier II bonds, at par, through private placement.
State Bank of India and Reliance Industries Limited (RIL) signed the shareholders agreement on 30 June 2016 for setting up Payments Bank. The Subscription and Shareholders' Agreement was signed by RIL as promoter with a 70% equity contribution and SBI as joint Venture partner with 30% equity contribution. The Payments Bank will leverage SBI's nationwide distribution network and risk management capabilities alongwith the substantial investments made by RIL in its retail and telecom businesses.
On 4 July 2016, State Bank of India announced that it has sold 5% stake in National Stock Exchange of India Limited (NSE) constituting 22.50 lakh equity shares of NSE to Veracity Investments Limited, a Mauritius based FII, at Rs 4,050 per share for a total consideration of Rs 911.25 crore. Post this transaction, SBI holds 5.19% stake in NSE while its subsidiary SBI Capital Markets Limited holds another 4.33% in the NSE.
The Committee of Directors for Capital Raising of the bank at its meeting held on 24 August 2016 authorized the bank to raise up to Rs 11100 crore Additional Tier 1 capital by way of issue of Basel III compliant Perpetual Debt instrument in USD and/or INR, at par, through private placement to overseas and/or Indian investors.
The Executive Committee of the Central Board (ECCB) of State Bank of India (SBI) at its meeting held on 14 October 2016 approved to dilute up to 5% stake of SBI in its subsidiary SBI Life Insurance Company Limited to a non-promoter entity.
On 25 October 2016, SBI announced that it has issued and allotted 25,000 AT1 Basel III compliant Non-convertible, Perpetual, Subordinated, Unsecured Debt instrument in the nature of debenture, of face value Rs 10 lakh each at par through private placement bearing coupon at 8.39% p.a. payable annually with call option after 5 years or any coupon payment date thereafter aggregating to Rs 2500 crore in third tranche.
The Executive Committee of the Central Board (ECCB) of State Bank of India at its meeting held on 9 December 2016 approved divestment of 3.9 crore equity shares constituting 3.9% stake in SBI Life Insurance Company Ltd. at a price of Rs 460 per share, subject to all regulatory approvals.
On 17 January 2017, SBI announced that it has concluded the issue of USD 500 million Fixed Rate Senior Unsecured Notes having a maturity of 5 years at a coupon of 3.25 percent payable semi-annually under Regulation-S. The bonds will be issued through the bank's London Branch and listed on Singapore Stock Exchange.
The Committee of Directors for Capital Raising of State Bank of India considered and approved on 20 January 2017 by circulation the allotment of 21.07 crores equity shares at an issue price of Rs 269.59 per share on preferential basis to Government of India aggregating Rs 5680.99 crore.
The Executive Committee of the Central Board of State Bank of India at its meeting held on 15 March 2017 accorded approval for infusing additional capital of up to Rs 1160.04 crore in credit card joint venture companies viz. SBI Cards & Payment Services Ltd. and GE Capital Business Process Management Services Ltd. through purchase of equity shares from GE Capital so as to increase the bank's stake in both the companies to 74%.
SBI merged five of its associate banks viz. State Bank of Bikaner & Jaipur, State Bank of Mysore, State Bank of Travancore, State Bank of Patiala and State Bank of Hyderabad and Bhartiya Mahila Bank with itself with effect from 1 April 2017. In February 2017, the Union Cabinet approved the acquisition by State Bank of India of its subsidiary banks namely State Bank of Bikaner and Jaipur, State Bank of Mysore, State Bank of Travancore, State Bank of Patiala and State Bank of Hyderabad.
On 8 June 2017, State Bank of India (SBI) announced closure of qualified institutional placement of equity shares. The bank successfully rose about Rs 15000 crore from issue of 52.21 crores equity shares at a price of Rs 287.25 per share to qualified institutional buyers.
The Central Board of State Bank of India at its meeting held on 27 December 2017 accorded approval to raise Additional Tier 1 capital by way of issuance of Basel III compliant debt instrument in USD and/or INR to the tune of Rs 8000 crore from domestic/international market including rupee denominated Masala Bonds till 31 March 2018.
The Executive Committee of the Central Board of State Bank of India at its meeting held on 8 January 2018 approved long term fund raising in single or multiple tranches up to USD 2 billion under Reg-S/144A, through a public offer and/or private placement of senior unsecured notes in US Dollar or any other convertible currency during FY 2018 and FY 2019.
The Executive Committee of Central Board of State Bank of India at its meeting held on 17 January 2018 approval the proposal for issuance of long term bonds of Rs 20000 crore for financing of infrastructure and affordable housing in domestic and overseas market in FY 2018 and FY 2019.
The Committee of Directors for Capital Raising of State Bank of India at its meeting held on 16 February 2018 accorded its approval for preferential allotment of 29.25 crore equity shares at Rs 300.82 per share (including a premium of Rs 299.82 per share) to Government of India (GoI) aggregating Rs 8800 crore.
Total assets of the Bank have increased by 6.55% from Rs 34,54,752.00 crore at the end of March 2018 to Rs 36,80,914.25 crore as at the end of March 2019. During the period, the loan portfolio increased by 12.97% from Rs 19,34,880.19 crore, to Rs 21,85,876.92 crore and Investments decreased by 8.86% from Rs 10,60,986.71 crore to Rs 9,67,021.95 crore as at the end of March 2019.
The Bank has one of the largest ATM networks in the world with 58,415 ATMs including Automated Deposit and Withdrawal Machines (ADWMs) as on 31 March, 2019. The Bank has 57,467 operating BCs, over 22,000 branches and 58,415 ATMs including 7,658 Automated Deposit & Withdrawal Machines (ADWMs). More than 36% of the financial transactions of your Bank are routed through ATMs/ADWMs.
As on 31 March 2020, the Bank has 61,102 operating BCs, around 22,100 branches and 58,555 ATMs including 13,270 Automated Deposit & Withdrawal Machines (ADWMs). Nearly 28% of the financial transactions of your Bank are routed through ATMs/ADWMs.
Total assets of Bank have increased by 7.35% from Rs 36,80,914.25 crore at the end of March 2019 to Rs 39,51,393.92 crore as at the end of March 2020. During the FY2020 , the loan portfolio increased by 6.38% from Rs 21,85,876.92 crore, to Rs 23,25,289.56 crore and Investments increased by 8.27% from Rs 9,67,021.95 crore to Rs 10,46,954.52 crore as at the end of March 2020.
In March 2020, as per Scheme of Reconstruction notified by the Government of India, SBI infused Rs 6,050 crore in Yes Bank Ltd., having 48.21% stake into the SBI Group and accordingly, Yes Bank Limited became an associate of the SBI Group w.e.f 14 March 2020.
During FY 2021, Bank launched three new products, viz. Agri Infrastructure Fund (AIF), Animal Husbandry Infrastructure Development Fund (AHIDF) and PM Formalisation of Micro Food Processing Enterprises (PM FME). The Bank has closed four foreign offices- Lenasia Marketing Office (South Africa), Selatar Remitance Center (Singapore), Bab-al-Bahrain Limited Service Centre (Bahrain) and its Representative Office at Istanbul (Turkey). The Bank has 22,219 branches over 71,968 Business Correspondents and over 62,617 ATMs including 13,237 Automated Deposit & Withdrawal Machines (ADWMs).
As of Mar'22, Bank has 22,266 branches, over 68,000 Business Correspondents and over 65,000 ATMs including 12,872 Automated Deposit & Withdrawal Machines (ADWMs). During FY 2022, Bank rationalized its overseas operations by a closure of an overseas Subsidiary, SBI Botswana Ltd, and merged the Ilford branch of SBI UK Ltd. with its East Ham branch.
During FY 2023, Bank opened one India Visa Application Centre (Other Offices) at Khulna (Bangladesh) and 5 branches and 3 extension counters through its overseas subsidiary in Nepal.
As of March 2023, Bank had 22,405 branches, over 76,089 Business Correspondents and over 65,627 ATMs including 12608 Automated Deposit & Withdrawal Machines (ADWMs).