i. economic backdrop and banking environment

291 Pages·2016·4.74 MB·English

Spine to be adjusted by printer
S
ta
te
B
a
n
k
o
f In
d
ia
| A
n
n
u
a
l R
e
p
o
r
t 2 AA SSMMAARRTT BANK,
0
1
5 FFOORR IINNDDIA ON THE GO…
-
1
6
State Bank Bhavan Follow us on :
Corporate Centre,
Madame Cama Marg, Mumbai,
Annual Report 2015-16
Maharashtra - 400021 theofficialsbi statebankofindiaofficial
Spine to be adjusted by printer
Spine to be adjusted by printer
contents
notice ..................................................................................................01 corporate BaNkiNg group ..............................................55
About sBI ...........................................................................................02 corporate Banking .....................................................................55
sBI’s Journey through numbers .....................................................03 transaction Banking Unit ..........................................................56
smart Bank for India on the Go ......................................................04 Project Finance & Leasing .........................................................58
Ratings ...............................................................................................09 Mid corporate Banking .............................................................59
sBI Group structure ..........................................................................10 International operations ..........................................................60
Performance Indicators ...................................................................12 stressed Assets Management ..................................................65
Financial Highlights for last 10 years ..............................................14 treasurY operatioNs ..........................................................68
central Board of Directors ...............................................................16 (iv) support and control operations ..........................................71
committees of the Board/Members of Human Resources and training ...............................................71
Local Boards/Members of central
Management committee/Bank Auditors .......................................18 Information technology ............................................................76
the chairman’s Message .................................................................22 Risk Management ......................................................................81
Directors’ report Official Language ........................................................................87
(i) economic Backdrop and Banking environment ...............30 Vigilance Mechanism .................................................................89
(ii) Financial performance ............................................................33 corporate social Responsibility ................................................89
(iii) core operations .......................................................................34 (v) associate & subsidiaries .........................................................94
NatioNal BaNkiNg group .................................................34 corporate goverNaNce .........................................................104
Personal Banking .......................................................................35 BusiNess respoNsiBilitY report ..........................................127
Anytime channels ......................................................................39 FiNaNcial statemeNts
Balance Sheet, profit & Loss Accounts &
small & Medium enterprises ....................................................46 Report of the Auditors
Rural Banking .............................................................................50 state Bank of India (standalone) ............................................128
other new Business Initiatives ................................................52 state Bank of India (consolidated) .........................................202
Government Business ...............................................................53 Basel (iii) - pillar 3 Disclosures...........................................252
Efficiency & Cost Control ...........................................................54 Disclosures on indicators for identification of
Global systemically Important Banks (G-sIBs) ............................282
Spine to be adjusted by printer
notice
StAte BAnK oF inDiA
(constituted under the
State Bank of india Act, 1955)
the 61st Annual General Meeting of Shareholders of the State Bank of india will be held at the “Y. B. chavan Auditorium”,
Y. B. chavan centre, General Jagannath Bhosale Marg, nariman Point, Mumbai-400021 (Maharashtra) on thursday the 30th
June, 2016, at 03.00 p.m. for transacting the following business:-
‘‘To discuss and adopt the balance sheet and the profit and loss account of the State Bank made up to the 31st day of March
2016, the report of the central Board on the working and activities of the State Bank for the period covered by the accounts and
the auditor’s report on the balance sheet and accounts’’.
corporate centre,
State Bank Bhavan,
Madame cama Road,
Mumbai - 400 021
(ARUnDHAti BHAttAcHARYA)
Date: 23rd May, 2016 cHAiRMAn
Important Information
Dividend Declared : `2.60 per share
Dividend Payment Date: 22.06.2016
Period of Book closure: 07.06.2016 to 11.06.2016
Record Date: 06.06.2016
State Bank of India | Annual Report 2015-16 1
ABoUt SBi
Founded in 1806, Bank of the Bank is india’s largest to personal, commercial
Calcutta was the first bank commercial Bank in terms enterprises, large corporates,
established in india and over of assets, deposits, profits, public bodies and institutional
a period of time evolved into branches, number of customers customers through its various
State Bank of india (SBi). SBi and employees, enjoying the branches and outlets joint
represents a sterling legacy of continuing faith of millions of ventures, subsidiaries and
over 200 years. it is the oldest customers across the social associate companies.
commercial bank in the indian spectrum.
subcontinent, strengthening the
nation’s trillion-dollar economy Headquartered at Mumbai,
and serving the aspirations of SBi provides a wide range
its vast population. of products and services
Our Vision Our Values
MY SBi. We will always be honest,
transparent and ethical.
MY cUStoMeR FiRSt.
We will respect our customers
and fellow associates.
MY SBi: FiRSt in cUStoMeR
SAtiSFAction.
We will be knowledge driven.
Our Mission
We will be prompt, polite and proactive with
our customers.
We will learn and we will
We will speak the language of young india.
share our learning.
We will create products and services that help
our customers achieve their goals.
We will never take the easy way out.
We will go beyond the call of duty to make our
customers feel valued.
We will be of service even in the remotest We will do everything we can to
part of our country. contribute to the community we work in.
We will offer excellence in services to those
abroad as much as we do to those in india.
We will nurture pride in india.
We will imbibe state-of-the-art technology
to drive excellence.
2 State Bank of India | Annual Report 2015-16
SBi’S JoURneY tHRoUGH nUMBeRS
1 30.12 31.90lakh 36,000
no. crore+ crore+
Largest Bank in india Active Business size Merchant Banking
(Deposits, Advances, customer base tie-ups
Branches, employees)
59,000 64,628 7.22 1.16
+
crore+ crore+
Pan-india AtMs Business correspondent and core Banking Daily average AtM
customer Service Points transactions (daily transactions
average transactions)
23.30 2.55 4.09 3.00
crore+ crore+ lakh+ lakh+
State Bank Group debit internet banking Average calls per day PoS machines
card holders users on contact centre
1.77 1,03,565 4.21 5.32
crore+ crore+ crore+
Green Remit cards Pan-india village RuPay Debit card Pradhan Mantri Jandhan
coverage Yojna Accounts
Expanding Digital Footprint in
internet Banking transactions (crore) Mobile Banking transactions (lakh) PoS transactions (lakh)
1441
124 882
90
565
771
64
574
SBi online is 278
the World's 8th
most Visited
Banking Site
2013-14 2014-15 2015-16 2013-14 2014-15 2015-16 2013-14 2014-15 2015-16
State Bank of India | Annual Report 2015-16 3
A SMARt BAnK FoR
inDiA on tHe Go…
As the digital economy flourishes, SBI is
embracing and evolving a digital business model
and has grown its technology and channel
platforms proportionately.
india is rapidly advancing towards their money. they wish to transact more
becoming a first world nation, and today, quickly, accurately and efficiently than
it is focusing on new opportunities such ever before. And we have always evolved
as Digital india, Smart cities, Bharatnet with the times to embrace new consumer
etc. As a result, indians are increasingly attitudes and be aligned as a “Smart” Bank
using the internet, social media and their with the service levels that an “india on the
smart phones to do their banking. they Go!” demands.
are increasingly demanding an end-to-end
experience and greater consistency when Going forward, we foresee an
doing their banking via their mobile, iPad, unprecedented growth in data, driven
or even a Pc. Similarly, corporates, SMes by the latest trends in mobility, social
and public institutions are leveraging media, cloud and analytics. At SBi, we are
the internet to conduct their business embracing and evolving a digital business
more efficiently and economically. New model and with an eye on the future. the
“disruptive” businesses are altogether re- various digital platforms we have created,
defining how people go about doing routine position us well to set new benchmarks and
chores. not to be left behind, millions from to keep our customers always connected,
rural India have become more financially always on. As a fully committed adopters
literate and are using the formal banking of the digital medium, we are confident of
system to have a more direct relationship remaining highly competitive, relevant and
with their money and social benefits. With well positioned trend setter for the industry.
an economy that is growing steadily and
surely, india is certainly on the Go! it was with this spirit that, last year,
we talked about how we have become
As the largest bank in india, we are integral “Bankers to Digital india”. in continuation
to thousands of commercial entities and of that journey, we have made significant
millions of personal lives. As the digital technological advancements and adoptions
A SMART BANK,
economy flourishes, SBI has grown in FY2016. Aptly, our Annual Report is
its technology and channel platforms dedicated to the many milestones we have FOR INDIA ON THE GO…
proportionately, and in some cases, ahead crossed, to become a “Smart Bank, for
of the curve. At SBi, we know that we india on the Go”.
have to bring banking to the fingertips of
our customers. We realise that modern
banking is about enabling our customers
to have a meaningful relationship with
4 State Bank of India | Annual Report 2015-16
A SMART BANK,
FOR INDIA ON THE GO…
State Bank of India | Annual Report 2015-16 5
A “SMARt” BAnK
FoR tHe neW GeneRAtion
currently in our
122 “sbiintoUcH”
branches,
thousands
of customers
are already
experiencing a new
way of banking.
122
sbiInTOUCH Branches
and growing
35.97%
Mobile Banking
Market Share in value terms
Keeping with the tradition of adapting our transact on a self-serving mode and has taken concerted steps to be at
product lines and services to changing with both onsite and remote expert the forefront of establishing a deep
requirements, SBi is committed to assistance. ecosystem for plastic money. today,
engage with our young generation as it has the largest comprehensive
early as possible. With the expansion Mobile smart phones have also made a electronic infrastructure in the country
of our “sbiintoUcH” branches across paradigm shift on our working and social to accept payment through cards.
70 districts of the country, we took behaviours. At SBi, we are focused on With more than 3 lakh PoS terminals
an assertive step in being the new placing Mobile Banking functionalities deployed in the market, we are amongst
benchmark in branch banking. today, in the hands of our customers to the top four transaction acquirers
within a short span of two years, we enhance their convenience, to build in india with the largest number of
now have 122 “sbiintoUcH” branches strong relationships, to reduce costs merchant relationships amongst Public
that are already being experienced and to keep strengthening our brand. Sector Banks. When it comes to issuing
by thousands of our customers. the Bank is currently the market leader cards to our customers, through our
“sbiintoUcH” realises our vision for mobile banking services in india joint venture SBicPSL, the SBi Group
for integrating the huge network with 1.77 crore users and a market is the 3rd largest credit card issuing
of bank ecosystem and the digital/ share of 35.97% in terms of value of company with a base of 35 lakh users
mobile platforms together to provide a transactions. and 12% market share in terms of
world class banking experience to the spends. When it comes to debit cards,
customer. these outlets are equipped Similarly, SBi recognised the trend SBi alone has a base of more than 23
with state-of-the-art gadgets and towards cashless society early and crore users.
machines, which allow customers to
6 State Bank of India | Annual Report 2015-16
A “SMARt” BAnK FoR coRPoRAteS
AnD GoVeRnMentS
With more than
67 crore
e-commerce
transactions in
FY2016, we are
the largest player
in the e-commerce
space within the
country.
36,000
Merchant Banking Tie-ups
2,250
Corporate
USE e-Trade Portal
it is said that money makes the world SBi’s e-trade web-based portal and State Governments to migrate their
go round. nowadays, doing trade and enhances our customers’ access to transactions to the online mode and
transactions online makes the world go trade finance services with speed bring in more overall efficiency and
round even faster. and efficiency. Today, nearly 2,250 transparency into the system.
corporates use this portal. We are also
our banking platform onlinesbi.com financing their Supply Chain Partners SBI e-Pay is the first and only aggregator
provides robust and customer friendly through our e-VFS/ e-DFS platforms, service by any bank in india. this
net banking services to retail, corporate facilitating an efficient management of platform aspires to bring in additional
and institutional customers, including their working capital cycle, sustained payment modes, new merchant
PSUs and Government Agencies. this growth and better profitability. Over categories, with a special focus on
cost-effective channel has enabled 182 industry Majors with nearly 3,900 central, State Government Departments
more than 124 crore transactions during vendors and more than 12,900 dealers and Municipal corporations.
FY2016, achieving 39% growth over across the country have migrated to our
the previous year. With over 36,000 electronic platform.
merchant tie-ups, direct or through
State Bank collect and e-commerce SBi has made big strides and leadership
aggregators, we have facilitated more position in using its digital infrastructure
than 67 crore e-commerce transactions to enable e-governance to step up to
during FY2016, making us by far a new levels of efficiency and productivity.
major player in the e-commerce space SBi has been a pioneer in developing
within the country. customised e-solutions to allow central
State Bank of India | Annual Report 2015-16 7