PROJECT REPORT ON STATE BANK OF INDIA

PRESENTED BY:
DEBASISH NAYAK KIRTEE ANOORAG BEAUTY BAL SUMIT ROY SUBHAKANTA DASH SK MUSHALLUDIN
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DECLARATION
We hereby declare that the project permitted STATE BANK OF INDIA submitted for MBA (Master in Business Administration) Degree. This project is about the business awareness of SBI, a leading Banking industry, and the information is collected from the secondary sources, under the guidance of Prof. Saud Hussain.

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CERTIFICATE
This to certify that the project entitled STATE BANK OF INDIA a banking industry is a project work carried out by Debasishnayak, Beauty bal, kirteeanoorag, Sumit ray,SK mussaladin of MBA (1 st year), in BIITM, Patia, Bhubaneswar, during the year 2013-15. This Project report has been prepared with a specific purpose in mind. It outlines the history and current scenario of the SBI globally and locally.

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ACKNOWLEDGEMENT
We have given our best efforts for the accomplishment of this project work. It would not have been possible without the support and assist of many individuals as well as organization. We would like to extend our sincere thanks to all of them. We are highly grateful to Prof. Saud Hussain, for his whole hearted support and guidance as well as constant supervision for providing necessary information regarding this project and for his assistance in completing the project. We would also like to express our gratitude towards our Group members and faculty who helped us for accomplishment of this project.

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CONTENTS:
INTRODUCTION HISTORY & BACKGROUND ORGANISATION STRUCTURE MARKETS ANALYSIS CORPORATE STRATEGIES PRODUCTS SEGMENT FINANCIAL SHAREHOLDER INFORMATION CORPORATE GOVERNANCE AWARDS &ACCOLADES SWOT ANALYSIS EXTERNAL ENVIORNMENT

INTRODUCTION:
State Bank of India (SBI), with a 200 year history, is the largest commercial bank in India in terms of assets, deposits, profits, branches, customers and employees. The Government of India is the single largest shareholder of this Fortune 500 entity with 61.58% ownership. SBI is ranked 60th in the list of Top 1000 Banks in the world by "The Banker" in July 2012. The origins of State Bank of India date back to 1806 when the Bank of Calcutta (later called the Bank of Bengal) was established. In 1921, the Bank of Bengal and two other banks (Bank of Madras and Bank of Bombay) were amalgamated to form the Imperial Bank of India. In 1955, the Reserve Bank of India acquired the controlling interests of the Imperial Bank of India and SBI was created by an act of Parliament to succeed the Imperial Bank of India. The SBI group consists of SBI and five associate banks. The group has an extensive network, with over 20000 plus branches in India and another 186 offices in 34 countries across the world. As of 31st March 2013, the group had assets worth USD 392 billion, deposits of USD 299 billion and capital & reserves in excess of USD 23.03 billion. The group commands over 23% share of the domestic Indian banking market. SBIs non- banking subsidiaries/joint ventures are market leaders in their respective areas and provide wide ranging services, which include life insurance, merchant banking, mutual funds, credit cards, factoring services, security trading and primary dealership, making the SBI Group a truly large financial supermarket and Indias financial icon. SBI has arrangements with over 1500 various international / local banks to exchange financial messages through SWIFT in all business centres of the world .

OVERVIEW:

HISTOTY AND BACKGROUND

The origin of the State Bank of India goes back to the first decade of the nineteenth century with the establishment of the Bank of Calcutta in Calcutta on 2 June 1806. Three years l ater the bank received its charter and was re-designed as the Bank of Bengal (2 January 1809). A unique institution, it was the first joint-stock bank of British India sponsored by the Government of Bengal. The Bank of Bombay (15 April 1840) and the Bank of Madras (1 July 1843) followed the Bank of Bengal. These three banks remained at the apex of modern banking in India till their amalgamation as the Imperial Bank of India on 27 January 1921. Primarily Anglo-Indian creations, the three presidency banks came into existence either as a result of the compulsions of imperial finance or by the felt needs of local European commerce and were not imposed from outside in an arbitrary manner to modernize India's economy. Their evolution was, however, shaped by ideas culled from similar developments in Europe and England, and was influenced by changes occurring in the structure of both the local trading environment and those in the relations of the Indian economy to the economy of Europe and the global economic framework.

Bank of Bengal H.O.

Establishment:
The establishment of the Bank of Bengal marked the advent of limited liability, joint-stock banking in India. So was the associated innovation in banking, viz. the decision to allow the Bank of Bengal to issue notes, which would be accepted for payment of public revenues within a restricted geographical area. This right of note issue was very valuable not only for the Bank of Bengal but also its two siblings, the Banks of Bombay and Madras. It meant an accretion to the capital of the banks, a capital on which the proprietors did not have to pay any interest. The concept of deposit banking was also an innovation because the practice of accepting money for safekeeping (and in some cases, even investment on behalf of the clients) by the indigenous bankers had not spread as a general habit in most parts of India. But, for a long time, and especially upto the time that the three presidency banks had a right of note issue, bank notes and government balances made up the bulk of the investible resources of the banks. The three banks were governed by royal charters, which were revised from time to time. Each charter provided for a share capital, four-fifth of which were privately subscribed and the rest owned by the provincial government. The members of the board of directors, which managed the affairs of each bank, were mostly proprietary directors representing the large European managing agency houses in India. The rest were government nominees, invariably civil servants, one of whom was elected as the president of the board.

Group Photogaph of Central Board (1921)

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Business:
The business of the banks was initially confined to discounting of bills of exchange or other negotiable private securities, keeping cash accounts and receiving deposits and issuing and circulating cash notes. Loans were restricted to Rs.one lakh and the period of accommodation confined to three months only. The security for such loans was public securities, commonly called Company's Paper, bullion, treasure, plate, jewels, or goods 'not of a perishable nature' and no interest could be charged beyond a rate of twelve per cent. Loans against goods like opium, indigo, salt woollens, cotton, cotton piece goods, mule twist and silk goods were also granted but such finance by way of cash credits gained momentum only from the third decade of the nineteenth century. All commodities, including tea, sugar and jute, which began to be financed later, were either pledged or hypothecated to the bank. Demand promissory notes were signed by the borrower in favour of the guarantor, which was in turn endorsed to the bank. Lending against shares of the banks or on the mortgage of houses, land or other real property was, however, forbidden. Indians were the principal borrowers against deposit of Company's paper, while the business of discounts on private as well as salary bills was almost the exclusive monopoly of individuals Europeans and their partnership firms. But the main function of the three banks, as far as the government was concerned, was to help the latter raise loans from time to time and also provide a degree of stability to the prices of government securities.

Old Bank of Bengal

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Major change in the conditions:

A major change in the conditions of operation of the Banks of Bengal, Bombay and Madras occurred after 1860. With the passing of the Paper Currency Act of 1861, the right of note issue of the presidency banks was abolished and the Government of India assumed from 1 March 1862 the sole power of issuing paper currency within British India. The task of management and circulation of the new currency notes was conferred on the presidency banks and the Government undertook to transfer the Treasury balances to the banks at places where the banks would open branches. None of the three banks had till then any branches (except the sole attempt and that too a short-lived one by the Bank of Bengal at Mirzapore in 1839) although the charters had given them such authority. But as soon as the three presidency bands were assured of the free use of government Treasury balances at places where they would open branches, they embarked on branch expansion at a rapid pace. By 1876, the branches, agencies and sub agencies of the three presidency banks covered most of the major parts and many of the inland trade centres in India. While the Bank of Bengal had eighteen branches including its head office, seasonal branches and sub agencies, the Banks of Bombay and Madras had fifteen each.

Bank of Madras Note Dated 1861 for Rs.10

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Presidency Banks Act:

The presidency Banks Act, which came into operation on 1 May 1876, brought the three presidency banks under a common statute with similar restrictions on business. The proprietary connection of the Government was, however, terminated, though the banks continued to hold charge of the public debt offices in the three presidency towns, and the custody of a part of the government balances. The Act also stipulated the creation of Reserve Treasuries at Calcutta, Bombay and Madras into which sums above the specified minimum balances promised to the presidency banks at only their head offices were to be lodged. The Government could lend to the presidency banks from such Reserve Treasuries but the latter could look upon them more as a favour than as a right.

Bank of Madras The decision of the Government to keep the surplus balances in Reserve Treasuries outside the normal control of the presidency banks and the connected decision not to guarantee minimum government balances at new places where branches were to be opened effectively checked the growth of new branches after 1876. The pace of expansion witnessed in the previous decade fell sharply although, in the case of the Bank of Madras, it continued on a modest scale as the profits of that bank were mainly derived from trade dispersed among a number of port towns and
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inland centres of the presidency. India witnessed rapid commercialisation in the last quarter of the nineteenth century as its railway network expanded to cover all the major regions of the country. New irrigation networks in Madras, Punjab and Sind accelerated the process of conversion of subsistence crops into cash crops, a portion of which found its way into the foreign markets. Tea and coffee plantations transformed large areas of the eastern Terais, the hills of Assam and the Nilgiris into regions of estate agriculture par excellence. All these resulted in the expansion of India's international trade more than six-fold. The three presidency banks were both beneficiaries and promoters of this commercialisation process as they became involved in the financing of practically every trading, manufacturing and mining activity in the sub-continent. While the Banks of Bengal and Bombay were engaged in the financing of large modern manufacturing industries, the Bank of Madras went into the financing of large modern manufacturing industries, the Bank of Madras went into the financing of small-scale industries in a way which had no parallel elsewhere. But the three banks were rigorously excluded from any business involving foreign exchange. Not only was such business considered risky for these banks, which held government deposits, it was also feared that these banks enjoying government patronage would offer unfair competition to the exchange banks which had by then arrived in India. This exclusion continued till the creation of the Reserve Bank of India in 1935.

Bank of Bombay
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Presidency Banks of Bengal

The presidency Banks of Bengal, Bombay and Madras with their 70 branches were merged in 1921 to form the Imperial Bank of India. The triad had been transformed into a monolith and a giant among Indian commercial banks had emerged. The new bank took on the triple role of a commercial bank, a banker's bank and a banker to the government. But this creation was preceded by years of deliberations on the need for a 'State Bank of India'. What eventually emerged was a 'half-way house' combining the functions of a commercial bank and a quasi-central bank. The establishment of the Reserve Bank of India as the central bank of the country in 1935 ended the quasi-central banking role of the Imperial Bank. The latter ceased to be bankers to the Government of India and instead became agent of the Reserve Bank for the transaction of government business at centres at which the central bank was not established. But it continued to maintain currency chests and small coin depots and operate the remittance facilities scheme for other banks and the public on terms stipulated by the Reserve Bank. It also acted as a bankers' bank by holding their surplus cash and granting them advances against authorised securities.

The management of the bank clearing houses also continued with it at many places where the Reserve Bank did not have offices. The bank was also the biggest tenderer at the Treasury bill auctions conducted by the Reserve Bank on behalf of the Government. The establishment of the Reserve Bank simultaneously saw important amendments being made to the constitution of the Imperial Bank converting it into a purely commercial bank. The earlier restrictions on its business were removed and the bank was permitted to undertake foreign exchange business and executor and trustee business for the first time.
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Imperial Bank:
The Imperial Bank during the three and a half decades of its existence recorded an impressive growth in terms of offices, reserves, deposits, investments and advances, the increases in some cases amounting to more than six-fold. The financial status and security inherited from its forerunners no doubt provided a firm and durable platform. But the lofty traditions of banking which the Imperial Bank consistently maintained and the high standard of integrity it observed in its operations inspired confidence in its depositors that no other bank in India could perhaps then equal. All these enabled the Imperial Bank to acquire a pre-eminent position in the Indian banking industry and also secure a vital place in the country's economic life.

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

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First Five Year Plan:

In 1951, when the First Five Year Plan was launched, the development of rural India was given the highest priority. The commercial banks of the country including the Imperial Bank of India had till then confined their operations to the urban sector and were not equipped to respond to the emergent needs of economic regeneration of the rural areas.

In order, therefore, to serve the economy in general and the rural sector in particular, the All India Rural Credit Survey Committee recommended the creation of a state-partnered and state-sponsored bank by taking over the Imperial Bank of India, and integrating with it, the former state-owned or state-associate banks. An act was accordingly passed in Parliament in May 1955 and the State Bank of India was constituted on 1 July 1955. More than a quarter of the resources of the Indian banking system thus passed under the direct control of the State. Later, the State Bank of India (Subsidiary Banks) Act was passed in 1959, enabling the State Bank of India to take over eight former Stateassociated banks as its subsidiaries (later named Associates). The State Bank of India was thus born with a new sense of social purpose aided by the 480 offices comprising branches, sub offices and three Local Head Offices inherited from the Imperial Bank. The concept of banking as mere repositories of the community's savings and lenders to creditworthy parties was soon to give way to the concept of purposeful banking sub serving the growing and diversified financial needs of planned economic development. The State Bank of India was destined to act as the pacesetter in this respect and lead the Indian banking system into the exciting field of national development.

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Mission, Vision & Values

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

MISSION
We will be prompt, polite and proactive with ourcustomers. We will speak the language of young India. We will create products and services that help our customers achieve their goals. We will go beyond the call of duty to make our customers feel valued. We will be of service even in the remotest part of our country. We will offer excellence in services to those abroad as much as we do to those in India. We will imbibe state of the art technology to drive excellence.

VALUES
We will always be honest, transparent and ethical. We will respect our customers and fellow associates. We will be knowledge driven. We will learn and we will share our learning. We will never take the easy way out. We will do everything we can to contribute to the community we work in. We will nurture pride in India.

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BOARD OF DIRECTOR:

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ORGANIZATION:

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Domestic presence:
SBI had 14,816 branches in India, as on 31 March 2013, of which 9,851 (66%) were in Rural and Semi-urban areas.In the financial year 2012-13, its revenue was INR 200,560 Crores (US$ 36.9 billion), out of which domestic operations contributed to 95.35% of revenue. Similarly, domestic operations contributed to 88.37% of total profits for the same financial year.

International presence:

The Israeli branch of the State Bank of India located in Ramat Gan. As of 28 June 2013, the bank had 180 overseas offices spread over 34 countries. It has branches of the parent in Moscow, Colombo, Dhaka, Frankfurt, Hong Kong, Tehran, Johannesburg, London, Los Angeles, Male in theMaldives, Muscat, Dubai, New York,

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Osaka, Sydney, and Tokyo. It has offshore banking units in the Bahamas, Bahrain, and Singapore, and representative offices in Bhutan and Cape Town. It also has an ADB in Boston, USA. The Canadian subsidiary, State Bank of India (Canada) also dates to 1982. It has seven branches, four in theToronto area and three in the Vancouver area. SBI operates several foreign subsidiaries or affiliates. In 1990, it established an offshore bank: State Bank of India (Mauritius). SBI (Mauritius) has 15 branches in major cities/towns of the country including Rodrigues.

Associate banks

Main Branch of SBI in Mumbai. SBI has five associate banks; all use the State Bank of India logo, which is a blue circle, and all use the "State Bank of" name, followed by the regional headquarters' name
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State Bank of Bikaner & Jaipur State Bank of Hyderabad State Bank of Mysore State Bank of Patiala State Bank of Travancore

Non-banking subsidiaries:

Apart from its five associate banks, SBI also has the following non-banking subsidiaries: SBI Capital Markets Ltd SBI Funds Management Pvt Ltd SBI Factors & Commercial Services Pvt Ltd SBI Cards & Payments Services Pvt. Ltd. (SBICPSL) SBI DFHI Ltd SBI Life Insurance Company Limited SBI General Insurance In March 2001, SBI (with 74% of the total capital), joined with BNP Paribas (with 26% of the remaining capital), to form a joint venture life insurance company named SBI Life Insurance company Ltd. In 2004, SBI DFHI (Discount and Finance House of India) was founded with its headquarters in Mumbai.

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LOCATION OF SBI IN INDIA

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SBI INTERNATIONAL LOCATION :

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MARKET
CUSTOMER ANALYSIS

Category Higher class

Middle class

Lower class

Risk Perception Generally complicated one, selective in choosing the products and they may be willing to take risk for earning higher returns. Customers may also demand for customization of products to fit their requirement. Moderate risk takers. Ex : struggling techies They have limited sense of choice and are very much

Targeted Products Home Loan, Demat Services, NRE/NRO Accounts, Safe Deposit Locker

Term Deposits, Car loan, Personal Loan etc

Savings Bank A/C, Recurring Deposits, Gold Loans etc

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concerned on the risk inherent in the product Type of Financial Targeted Products customer Position Mainstream customers Moderate Good to SB,InternetBanking,MobileBanking,ATMcards ,LifeInsurance,Mutual Funds etc Education Loan,No frills Account,Kisan Credit Card,DairyLoan,Tractor Loan etc Home Loans,NRIServices,FCNB Acount, ASBA etc Premium

Students and Weak Underbanked High net Healthy worth and mass affluent

Retired and Good Term Deposits, Pension Loans etc others with wealth but very little income Status of e.g., private SME power Current Accounts etc company company, public company, government corporations, partnership firm, proprietorship firm);
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Industry e.g., classification manufacturing industry, trading industry, service industry Requirement e.g., company of funds needing Rs. 20-50 million, Rs. 50-100 million, above Rs. 100 million Life-cycle of start-up the company company, growing company, mature company Market e.g., domestic served by the market, company export market

SME Smart Score, SME Credit Card, Rice Mill Plus, Traders Easy Loan, Doctor Plus etc

As per the guidelines of CAG, MCG.

School Plus, Warehouse Receipt finance etc

Related to Trade finance, Project Finance etc

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PRODUCT OF SBI

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PRODUCTS
HOME LOAN AS AN OVERDRAFT
An innovative and customer-friendly product enabling the customers to earn optimal yield on their savings by reduce interest burden on Home Loans, with no extra cost.

The loan is sanctioned as an Overdraft with added flexibility to operate the Home Loan Account like SB or Current Account. Bank also provides Cheque Book/Net Banking facility for the purpose. The product enables customers to park their surplus funds/savings in SBI Maxgain (with an option to withdraw whenever required), especially in the wake of low yields on other Deposit/Investment products.

Loan Amount
Minimum Loan Amount: Maximum Loan Amount: No Cap Rs.5 lacs

Interest Rate
A premium of 0.25% over and above the applicable Home Loan interest rate for Home Loan > Rs.1 crore is payable. (Other terms and conditions are as applicable to regular Home Loan Scheme)

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SBI YUVA HOME LOAN

TAILOR MADE HOME LOAN SCHEME FOR THE YOUTH

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

Eligibility
Age between 21 years to 45 years. Minimum Net Monthly Income of applicants should be Rs. 30,000/- (expected rental income from the proposed property should not be included in the monthly income of the borrower).

Repayment
Under SBI Yuva Home Loan Scheme, only the interest applied on Home Loan is payable during the first 36 months. The regular EMIs start after completion of 36 months. (Other terms and conditions are as applicable to regular Home Loan Scheme) NRI HOME LOANS:

HOME LOANS TO NON RESIDENT INDIANS (NRIs) & PERSONS OF INDIAN ORIGIN (PIOs) Eligibility
Non Resident Indians (NRIs) or Persons of Indian Origin(PIOs) The applicants should have a regular source of income. Minimum employment tenure in India/Abroad should not be less than 2 years.
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Loan Amount
Minimum Loan Amount: Rs. 3 lacsMaximum Loan Amount: No upper cap. (Other terms and conditions are as applicable to regular Home Loan Scheme)

SBI REALTY LOANS FOR PURCHASE OF PLOT FOR CONSTRUCTION OF A DWELLING UNIT
HOME SBI Realty provides an opportunity to the customer to purchase a plot for construction of house. The construction of house should commence within 2 years from the date of a ailment of SBI Realty Loan. Customers are also eligible to avail another Home Loan for construction of house on the plot financed under the SBI Realty with the benefit of running both the loans concurrently.

Loan Amount Repayment Period

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Maximum Loan Amount: Rs.10 crores Up to 15 years

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

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SBI PAL
PRE-APPROVED HOME LOAN The SBI PAL provides sanction of Home Loan limits to the customers before finalization of the property which enables them to negotiate with the Builder/Seller confidently. The loan eligibility will be assessed on the basis of income details of the applicant. Non-refundable processing fee as applicable to the Home Loan will be collected at the time of sanction.

Validity Period Pre-approved loan arrangement letter (PLAL) will be valid for a period of 4 months. Property papers will be required to be submitted by the borrower within the validity of PLAL. Processing fee will not be levied again.

Loan Amount Pre-approved loan arrangement letter (PLAL) will carry the eligible loan amount calculated on the basis of prevailing interest rates Minimum Loan amount: Rs.10 Lacs. (Other terms and conditions are as applicable to regular Home Loan Scheme)

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SLOGAN OR LOGO OF SBI :

SLOGAN
"PURE BANKING, NOTHING ELSE", "WITH YOU - ALL THE WAY"

"A BANK OF THE COMMON MAN" "THE BANKER TO EVERY INDIAN" "THE NATION BANKS

LOGO:

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ADVERTISING INITIATIVES:

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FINANCIAL ANALYSIS :
DATA TO BE STUDIED

TABULATED

GRAPHICAL DEPICTED

LAST 10 YEAR REVENUE

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DATA TO BE STUDIED (METHODOLOGY RESEARCH)

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ANALYSIS OF DATA

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HIGHLIGHTS

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BALANCE SHEET :

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SHARE BSE:

SHARE NSE:

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GOVERENCE:
State Bank of India is committed to the best practices in the area of Corporate Governance, in letter and in spirit. The Bank believes that good Corporate Governance is much more than complying with legal and regulatory requirements. Good governance facilitates effective management and control of business, enables the Bank to maintain a high level of business ethics and to optimize the value for all its stakeholders. The objectives can be summarized as: To protect and enhance shareholder value. To protect the interest of all other stake holders such as customers, employees and society at large. To ensure transparency and integrity in Communication and to make available full, Accurate and clear information to all concerned. To ensure accountability for performance and customer service and to achieve excellence at all levels. To provide corporate leadership of highest standard for others to emulate. The Bank is committed to: Ensuring that the Banks Board of Directors meets regularly, provides effective leadership and insights in business and functional matters and monitors Banks performance.
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 Establishing a framework of strategic control and continuously reviewing its efficacy. Establishing clearly documented and transparent management processes for policy development, implementation and review, decision-making, Monitoring, control and reporting. Providing free access to the Board to all relevant information, advices and resources as are necessary to enable it to carry out its role effectively. Ensuring that the Chairman has the responsibility for all aspects of executive management and is accountable to the Board for the ultimate performance of the Bank and implementation of the policies laid down by the Board. The role of the Chairman and the Board of Directors are also guided by the SBI Act, 1955 with all relevantamendmnts. Ensuring that a senior executive is made responsible in respect of compliance issues with all applicable statutes, regulations and other procedures, policies as laid down by the GOI/RBI and other regulators and the Board and reports deviations, if any .The Bank has complied with the provisions of Corporate Governance as per Clause 49 of the Listing Agreement with the Stock Exchanges except where the provisions of Clause 49 are not in conformity with SBI Act, 1955 and the directives issued by RBI/GOI. A report on the implementation of these provisions of Corporate Governance in the Bank is furnished below.

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ENVIRONMENTAL INITIATIVES: State Bank of India (SBI) has become the first bank in the country to venture into generation of green power by installing windmills for captive use. As part of its green banking initiative, SBI has installed 10 windmills with an aggregate capacity of 15 MW in the states of Tamil Nadu, Maharashtra and Gujarat. "We have planned to install an additional 20 MW capacity of windmills in Gujarat soon and touch 100 MW power generation through windmills within five years," SBI chairman OP Bhatt told reporters after inaugurating the windmills at Panapatti site in Vadaputtur Village in Pollachi Taluk in Coimbatore on Friday. He said windmills are set up with a definite objective of reducing the dependence on the polluting thermal power and not on purely economic or business considerations. "At present, the bank consumes 100 MW of power per year. So, we will try to be energy neutral and reduce our carbon footprints," he added. The total cost of installation of a windmill of 1.5 MW is around Rs 10 crore. "The operation cost is close to zero and we expect to recover the initial investment in four years," said Mr. Bhatt. Suzlon Energy had erected the windmills in four months. "Our mission is to make all Indian banks go green and we are already discussing with 25 banks," said Suzlon CMD Tulsi R Tanti. He said, "Suzlon, which currently holds 55% market share in the country is now more focused on wind power development. Of
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the 11,000 MW installed wind energy in India, 6,000 MW has been installed by Suzlon. "There is 45,000 MW wind power potentiality in the country and we will target that market here," Mr. Tanti added. Mr. Bhatt said, the bank will also support the green initiatives of its clients and will offer them finance on priority and at concessionary rates of interest. Towards that end, the bank has launched a loan product called 'Carbon Credit Plus' to finance the future CER receivables of CDM projects. Earlier, Mr. Bhatt referred to the upward bias in interest rates in the coming months as the manufacturing sector activities are picking up. He said the credit growth will be much better than the 18% registered last fiscal and it might even touch 23% as against RBI expectation of around 20% this year. According to him, retail and agriculture sectors will pick up in the second quarter, while the third quarter will see huge build up in infrastructure front and increase in capex and working capital. "The industry is working at 80% capacity now, which is close to its peak of 85% and so the credit growth will be fairly good this year," he added. On teaser home loans, Mr Bhatt said, the bank has stayed with the last package for nearly 18 months now unlike the earlier short periods of three or four months. It will announce the new interest rates by this month-end after accessing the future demand. "It is possible that the base rate might settle at around 8%," he added. Regarding non-performing assets, Mr Bhatt said, net NPAs has come down in the last fiscal for SBI and the trend is expected to continue this year as the economy is doing well.
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CORPORATE SOCIAL RESPONSIBILITY (CSR):

1. The Bank keeps aside 1% of its net profit for corporate social responsibility and the Endeavour is to have full achievement of the same. 2. The Bank CSR policy involves donation under the following major categories: i) National donations to Prime Ministers and Chief Ministers Relief Funds for natural and other calamities ii) Contribution to organizations having exemption under 80G of the Income Tax Act largely for equipment and vehicles, iii) Distribution of fans and water purifiers to neighbourhood schools.

Assam (floods) - ` 2 crores During the year we are happy that the target of donating 1% of the net profits to CSR, which has eluded the Bank earlier, was not only fully achieved but was surpassed. 3. Other Flagship programmes: Looking to the deep inconvenience and discomfort students faced in hot summer in classrooms with out the fans, the Bank donated 1,40,000 fans to 14,000schools. The methodology was that every branch of the Bank adopted a school in its
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neighbourhood attended by students from modest background and installed 10 fans and one water purifier. This strategy gave wide reach to the activity and every single region of the country having SBI branch had schools in the Vicinity benefitting from donation of fans and a water purifier. Rajasthan.

Rajasthan (floods) - ` 2 crore

Donation of water purifier JAI Kisan School, Manjhatali Gumla, Jharkhand

Donation of school bus to N.C. Chaturvedi school for deaf

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CRISIL RATINGS:
STATE BANK OF INDIA RATINGS BY INTERNATIONAL AGENCIES

MOODYS INTERBANK CREDIT SERVICES LTD. (MOODYS) AUGUST 2013 Country Foreign Currency Long Term Ba2 Short Term Not Prime Domestic Currency Long term Ba2 Short Term Not prime Banks FSR Long Term Deposit Rating Outlook Foreign Currency Stable Domestic Currency Stable FSR Outlook Banks MTN Programme (US$ 1 billion): Senior Unsecured Debt: Baa3 Subordinated Debt: Baa3

SBI Ba2 Not Prime A2 Prime-2 D+ Stable Stable Stable Baa2 Baa3

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STANDARD & POORS AUGUST 2013 Country Foreign Currency Long Term Short Term Domestic Currency Long term Short Term Long Term Deposit Rating Outlook Foreign Currency Domestic Currency Banks MTN Programme ( US$ I billion ) Senior Unsecured Debt: Subordinated Debt: BB B BB+ B Positive Stable SBI BB+ B BB+ B Stable Stable

BB BB-

BB+ BB

DOMESTIC RATINGS FOR BONDS Bonds AAA Ind AAA

CRISIL Fitch

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AWARD AND ACCHIEVEMENTS:

SBI was ranked 298th in the Fortune Global 500 rankings of the world's biggest corporations for the year 2012. SBI won "Best Public Sector Bank" award in the D&B India's study on 'India's Top Banks 2013'. State Bank of India won three IDRBT Banking Technology Excellence Awards 2013 for Electronic Payment Systems, Best use of technology for Financial Inclusion, and Customer Management & Business Intelligence in the large bank category. SBI won National Award for its performance in the implementation of Prime Ministers Employment Generation Programme (PMEGP) scheme for the year 2012 Best Online Banking Award, Best Customer Initiative Award & Best Risk Management Award (Runner Up) by IBA Banking Technology Awards 2010 SKOCH Award 2010 for Virtual corporation Category for its e-payment solution SBI was the only bank featured in the "top 10 brands of India" list in an annual survey conducted by Brand Finance and The Economic Times in 2010. The Bank of the year 2009, India (won the second year in a row) by The Banker Magazine Best Bank Large and Most Socially Responsible Bank by the Business Bank Awards 2009 Best Bank 2009 by Business India The Most Trusted Brand 2009 by The Economic Times. SBI was named the 29th most reputed company in the world according to Forbes 2009 rankings Most Preferred Bank & Most preferred Home loan provider by CNBC Visionaries of Financial Inclusion By FINO Technology Bank of the Year by IBA Banking Technology Awards SBI was 11th most trusted brand in India as per the Brand Trust Report 2010.

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EXTRANAL ENVIRONMENT :
TORONTO: The global financial crises will have minimum impact on the Indian economy and the country will do better than the rest of the world, chief of India's major public sector bank has said. India should be able to achieve an annual growth of about seven to eight per cent -- quite a good figure, considering the current climate, President and Chief Executive Officer of the State Bank of India (Canada) ArunNagarajan said. However, "no one can predict how long or deep the current market turmoil will be," Nagarajan said while addressing IndoCanadian community here at a Diwali dinner hosted by the bank. Urging Canadian investors to invest in India, Nagarajan said that the country's banking system was sound and well capitalized. "It was not exposed to the type of assets which have given rise to the global financial crisis," he said, adding that this was the time for investors to buy stocks and hold them for some time.

Global slowdown will have minimum impact on Indian economy: SBI

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SBI promotes environment issues organises Go green rally in Chandigarh

Donates 200 cycles to poor students Sh Ram Niwas,Home Secretary, Chandigarh Administration together with ShDiwakar Gupta, Managing Director, SBI flagged off a massive "Go Green - Cycle Rally" in which people from every walk of participated. Almost700 persons took part in the cause where they learn the lessons of the green environment and how to protect ourselves from global warming. The rally is organized to promote awareness about Global warming and to protect environment.

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

Speaking on the occasion,S.K. Sehgal, Chief General Manager, State Bank of India, Chandigarh Circle stressed the need to inculcate the habit of using cycle to make the environment pollution free. In the recent past, SBI has also initiated Tree Plantation Program under GO GREEN CAMPAIGN, in the southern sectors.

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

SWOT ANALYSIS
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State Bank of India - SWOT Analysis

Description: State Bank of India - SWOT Analysis company profile is the essential source for top-level company data and information. State Bank of India - SWOT Analysis examines the companys key business structure and operations, history and products, and provides summary analysis of its key revenue lines and strategy. State Bank of India (SBI) is the leading commercial bank in India, offering services such as retail banking, commercial banking, international banking and treasury operations. The bank is an integral part of State Bank Group, which includes seven other banks and offers additional services such as mutual funds and insurance. The bank primarily operates in India. It is headquartered in Mumbai, India.205,896 people. The bank recorded revenues of INR335,639.3 million (approximately $6,484.6 million) in the financial year (FY) ended March 2009, an increase of 30.5% over FY2008. The operating profit of the company was INR179,152.3 million (approximately $3,461.2 million) in FY2009, an increase of 36.7% over FY2008. The net profit was INR91,212.4 million (approximately $1,762.2 million) in FY2009, an increase of 35.5% over FY2008.

SWOT Analysis
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Strength

1. The biggest bank in the country 2. Has a separate act for itself. Thus, a special privilege. 3. Biggest branch network in the country 4. First public sector to move to CBS

Weakness

1. Huge amount of staff 2. Expected to experience high level of attrition due to retirement of its top management 3. Still carries the image of the old Govt. sector bank

Opportunity

1. Pool in talent to replace the going top management to serve the next generation 2. Make better use of its CRM 3. Expansion into rural areas

Threats

1. Consolidation among private banks 2. New bank licenses by RBI 3. Foreign banks that have sophisticated products

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