MXQVL NOTICE STATE BANK OF BIKANER & JAIPUR -7T7D4BEWL8J2DIELVTK .U JRK Head Office, Tilak Marg, 'C'-Scheme, J[ÉLLVEL L;Z >GSZEFLY;>?MI -EIF> Jaipur-302 005 U JRK
SO_^LKL MXQVL OI ULSI H4B GE -7T7 D4BE WL8J2 DIELVTK NOTICE is hereby given that the Fifty-second Annual General Meeting of the Shareholders of State Bank . U JRK ET WBLÉLLKELTB EI PI PLGL;E MLÉLLKL M)LL of Bikaner and Jaipur will be held in the Maharana FHLKLLL J[SLJ W8LG.7LTGK F> )LLKSI GP]L )LPV> ET Pratap Auditorium, Bharatiya Vidya Bhavan, K. M. FFRBLIFLY;>WLT7I METMLFVT>U JRK Munshi Marg, Opp. O.T.S., Jaipur - 302015 on FTBLR¹PLKGOVLBEUXV ELTJXPL;6HDUT Friday, the 7 th June, 2013 at 11.30 A.M. (Indian Standard Time) to discuss and adopt the Balance )LLKSI FLVEMF WL LTGUSEIULPTYIGUMFTBWJ[4Z> Sheet and Profit & Loss Account of the Bank, the report MTFLQ;>SEEIWPGÉLETSRZVJ L PB of the Board of Directors on the working and ZL)LWL4KHLGV
GO:ZI DI+IKLF Delhi B. Sriram GOVLBEFC;> J[D6ÉLGVOTLE Dated: 06th May, 2013 Managing Director
1 GPL MXQI CONTENTS
N:ZT N6VGSEL EOLE A Decade of Progress 2004-2013 ` EKLT. FTB (`in Crore) MBETSE JXUI PB PR2Z JGKQLZVZL)L GVPZZL)L LL 2 N:ZT PR2Z0 PML W6SKD4BEUFLWLTBMGHSTotal Business including inter-bank deposits 111558 130590 UFLKLGL LDeposits 61572 72116 PRR2ZWGY[FTotal Advances 49986 58474 WGY[F GVPZ Advances (Net) 49244 57535 GVPTL GVPZ Investments (Net) 16669 20146 GVPZZL)LNet Profit 652.03 730.24 UFLWLTBEIZLYSCost of Deposits 6.85% 7.13% WGY[FLTBJKWL Yield on Advances 11.51% 11.64% GVPZ$ LUW6SKNet Interest Margin 3.70% 3.62% J[OºLJXUI PBWLKG\LGS LPaid-up Capital & Reserves 4164.88 4764.13 J[GSWBLWL `FTB Earning per Share (in `) 95.05 104.32 J[GSWBLJR-SEFX: ` FTB Book Value per Share ( in `) 594.98 678.74 DLMTZIETWVRMLK As per Basel-I 12.81% 11.81% JXUIJ L;*SSLWVRJLSCapital Adequacy Ratio DLMTZII ETWVRMLK As per Basel-II 13.76% 12.16% ZL)LLBLOKDividend Rate 145% 161% MEZY4KGVJLGOSWLG-S LBGross Non Performing Assets 1651.47 2119.49 MEZY4KGVJLGOSWLG-S LBJ[GSLSGross NPA % 3.30% 3.62% GVPZY4KGVJLGOSWLG-S LBJ[GSLSNet NPA % 1.92% 2.27% J[L'LGFESLJ[L*S\LT LELTWGY[FAdvances to Priority Sectors 17690 20807 ²GL\LT LELTWGY[FAdvances to Agriculture 9032 9188 MX\F PBZ LRN]FLTBELTWGY[FAdvances to Micro and Small Enterprises 6478 8127 GV L;SGPºLExport Finance 1931 2334 LL 3 GVOTLEF.Z FLQ;>ELT BOARD OF DIRECTORS (AS ON 31 st March, 2013) +IÈSIJQL4ÉLKI )LLKSI -7T7D4BE MFVRLBYID4BE WGÉLGV F Shri Pratip Chaudhuri Chairman, ex-officio under clause EIÉLLKLEINJÉLLKL ET WGÉLGV F EI ÉLLKL EI NJÉLLKL Shri Mihir Kumar Nominated by the Central +IGFGHKERFLK Director, Govt. of India, Ministry of Government under clause (e) of GVOTLE>)LLKSMKELK> ET WGÉLGV F EI ÉLLKL EI NJÉLLKL Shri Sunil Dutt Bali Nominated by the Central +IMRVIZOºLDLZI Government under clause (cb) of ?FR-ELV !GP]LKVYK> ET ML'L JG#S ÉLLKL EI NJÉLLKL Muskan, 4/83, Vidhyadhar Nagar, Jaipur sub-section (1) of section 25 read U JRK ET Shri D.K. Jain, Nominated by the Central +I.IETU4V WGÉLGV F EI ÉLLKL EI NJÉLLKL S. W. O. State Bank of Bikaner & Government under clause (ca) PZG 4 GVOTLEF.Z FLQ;ELT BOARD OF DIRECTORS (AS ON 31 st March, 2013) +IJ[SIJQL4KI +IDI+IKLF +IKLUIP VFTHKL WÉ \L J[D6ÉLGVOTLE Shri Rajeev N Mehra Shri Pratip Chaudhuri Shri B. Sriram Chairman Managing Director +IJ[OIJERFLKML6 LZ +IFSIFLG:PELGM6HL +IGFGHKERFLK Shri Pradip Kumar Sanyal Smt. Malvika Sinha Shri Mihir Kumar +IKLUTL7IFVRDKPLZL +I)LLKSKSV +IERVLZ.LZGF L Shri Rajesh T. Manubarwala Shri Bharat Rattan Shri Kunal Dalmia +IWLETMKLJ2 +I M.IDLZI +I.IETU4V Shri Arun K. Saraf Shri S.D.Bali Shri D.K. Jain 5 )LLKSI -7T7D4BE MFVRLBYID4BE WGÉLGV F>EIÉLLKL ETGVD6ÉLVLTBETSHS)LLKSI -7T7D4BE>)LLKSI GKU P;D4BE PB )LLKSMKELKELTGVOTLEFB.ZELÈGSPTOV ÈGSPTOVEIWPGÉLWÈ4Z>MTFLQ;> -7T7D4BEWL8J2DIELVTK .U JRKET )LLKSI W'L;0 P-'LL EIMF- LELKLU-'LLVEIW'L;0 P-'LL GVOTLEFB.ZELTD4BEETFLQ; MT YHKL MBDBÉL H4" EI UVYLVL ET6O[I MLBG< EI MBY#V ^LKL PL; ELTMFL*SHR PL;ELPLGL;EÈGSPTOV> ETWVRMLKÈGSLSZLTYY[LFIL\LT LLTB FTBMEZ LKTZXN3JLOFTBWGY[F WBETG\LSSRZVJ L PBZL)LHLGV 6 REPORT OF THE BOARD OF DIRECTORS TO THE STATE BANK OF INDIA, THE RESERVE BANK OF INDIA AND THE GOVERNMENT OF INDIA IN TERMS OF SECTION 43(1) OF THE STATE BANK OF INDIA (SUBSIDIARY BANKS) ACT 1959 PERIOD COVERED BY THE REPORT: 1 ST APRIL 2012 TO 31ST MARCH 2013 The Board of Directors of State Bank Korea, Thailand and Chile. By March, 2013, WPI inflation at of Bikaner and Jaipur have pleasure in 6.0 per cent turned out to be lower presenting this Annual Report together INDIAN ECONOMY than the Reserve Banks of India's with the audited Balance Sheet and indicative projection of 6.8 per cent Profit and Loss Account of the Bank Central Statistical Organisation's mainly due to sharp decline in non- for the year ended 31st March 2013. (CSOs) advance estimate of 5.0 per food manufactured product inflation in cent GDP growth during financial year the second half of the year. Keeping MANAGEMENT DISCUSSION AND 2012-13 is lower than the Reserve in view the domestic demand - ANALYSIS Bank's base line projections of 5.5 supply balance, the outlook for global per cent set out in the Third Quarter commodity prices and the forecasting a normal monsoon, RBI expects WPI ECONOMIC ENVIRONMENT Review of January, 2013 reflecting slower than expected growth in both inflation to be in range band around 5.5 per cent during 2013-14. WORLD ECONOMY industry and services. During 2013- 14 economic activity is expected to show modest improvement over last RAJASTHAN ECONOMY Global economic prospects have year. The out look for industrial activity improved but the road to recovery in remains subdued, with the pipeline of Rajasthan's economy is primarily the advanced economies will remain new investment drying up and existing agricultural and pastoral. The problem bumpy. In advanced economies, projects stalled by bottlenecks and of famine and drought is deeply related activity is expected to gradually implementation gaps. The RBI has with the economy of Rajasthan. accelerate, starting in the second half projected baseline GDP growth for According to the population of 2001 of 2013. Over the past six months, financial year 2013-14 at 5.7 per about 80% of the population lives in advanced economy policymakers cent. rural areas therefore agriculturist tribes have successfully defused two of the biggest short-term threats to the global recovery, the threat of a euro area breakup and a sharp fiscal contraction in the United States caused by a plunge off the “fiscal cliff.” In response, financial markets have rallied on a broad front. Growth in several emerging and developing economies (EDEs) rebounded from the moderation. Among BRICS countries growth accelerated in Brazil and South Africa, while it persisted below trend in China, Russia and India. Inflation has remained benign in the Advanced Economies in the absence of demand pressures and inflation expressions remain well anchored. The inflation in EDEs present a mixed picture. While FLVVI GPºLFB LI>)LLKSMKELK+IJIGQO&DKF On-line Inauguration of 1000th Branch of the inflation has picked up in Brazil, Russia Bank at Sambhar by Hon'ble Union Finance and Turkey, it has eased in China, D4BEEIPIBLL 7 GPºLI \LT LFTBGPELM ELWVRJLZVWÈ4ZMTFLQ; MRGPÉLLELNJ)LLTYEKVTEIWVRFGS ETDIQEKVLHLTYL" ÈOLVEKVTHTSR)LLKSI GKUP;D4BEVT PL; FBT WVRMXGQS PLGLG5 E )LLKSI GKUP;D4BEVTD4BELTBELTMXGQS M)LID4BELTBELTMXGQSGE LH4" D4BELTBETWGY[FLTBFTBSTUGYKLP7EL 8 are the biggest sufferers in time of Amidst trade-offs, monetary policy banks can offer the entire suite famine and drought. Rajasthan is the factored in increased growth risks of products required to usher in leading investment destination in India and shifted its stance to calibrated meaningful financial inclusion. after Maharashtra and Gujarat because easing to address the growth slow UÊ RBI has allowed Banks to establish of peaceful environment, better law and down as headline inflation gradually outlet for BCs in rural centres to order situation, excellent infrastructure, moderated. The Government also boost the Government's financial investment friendly climate and very launched concerted policy action and inclusion programme. less population density. Areas facing reforms during H2 of 2012-13. These NCR such as Bhiwadi are now buzzing reforms, with fuller implementation, UÊ RBI has advised all Banks to with automobile and manufacturing are expected to arrest the downward allow their customers to use the companies. Rajasthan is pre-eminent spiral and kick in the modest recovery National Electronic Funds Transfer in quarrying and mining in India. The in 2013-14. Some of the important (NEFT) facility for repaying loans. state is the second largest source of policy developments: cement. It has rich salt deposits at UÊ The borrowing limit of Scheduled Sambhar, copper mines at Khetri and UÊ Interest subvention of 1 per cent Commercial Banks (SCBs) under zinc mines at Dariba and Zawar. on housing loans extended to the Marginal Standing Facility loans upto `15 lakh, where cost (MSF) raised from 1% to 2% Endowed with natural beauty and a of the house does not exceed to of their Net Demand and Time great history, tourism is flourishing `25 lakh. Liabilities. in Rajasthan. The palaces of Jaipur, lakes of Udaipur and desert forts of UÊ Small individual investors will UÊ Interest Subvention scheme Jodhpur, Bikaner & Jaisalmer are get no-frills demat accounts for for short-term crop loan to be among the most preferred destination trading in stocks, mutual funds continued. of many tourists, Indian and foreign. A and other securities without any UÊ Companies investing `100 crore spin-off of tourism has been the growth annual maintenance charges for or more in plant and machinery of the handicrafts industry. Tourism holdings up to `50000. Also, the during the period 01.04.2013 provides a big boost to the economy charges would be capped at a to 31.03.2015 will be entitled to of Rajasthan. Recently HPCL signs a maximum of `100 a year if the deduct an investment allowance MoU with Rajasthan Government for portfolio value is up to `2 lakh. of 15% of the investment. 9MMTPA Refinery-cum-Petrochemical UÊ RBI released the final guidelines Complex at Barmer in Rajsthan. for Indian Banks on BASEL-III. UÊ Guidelines regarding financial DEVELOPMENTS IN THE Banks will have to comply with restructuring of DISCOMS FINANCIAL SECTOR these norms between April, 2013 have been announced. State Government urged to prepare the and March, 2018. financial restructuring plan, quickly The year 2012-13 witnessed a sharp sign MoU and take advantage of decline in the advances growth of UÊ RBI has notified Banks to the scheme. scheduled commercial banks (SCBs) obliterate the foreclosure charges (prepayment charges) on floating while deposit growth also subdued. UÊ Additional deduction of interest up rate home loans. This will lead The year-on-year aggregate deposits to `1.00 lac for a person taking to reduction in the discrimination and advances growth of SCBs stood first home loan up to `25.00 lac between existing and new at 13.2% and 13.9% respectively as at during period 01.04.2013 to borrower; and competition among end-March 2013, compared to 17.4% 31.03.2014. and 19.3% respectively during the banks will result in finer pricing of previous year. floating rate home loan. UÊ All Branches of Public Sector Banks to have ATM by UÊ The central role in financial Growth slowdown, persistent inflation 31.03.2014. and the twin deficit risks came to the inclusion has to be played by fore during 2012-13 and enervated banks. They need to focus on UÊ Proposal to set up India's first the Indian economy endangering the transactions in accounts opened women's Bank as a Public Sector reversal of its declining growth path. under financial inclusion. Only Bank. 9 !! MTT !! J[GSLS ) EI PAG OU; EKST NJ LTYGE L PBZY)LY `G7GZWV EI WPGÉL ET OLTKLV ` HR W6SFLQ; ELT ` EIÈLKBG)LESKZSLNJZ$ÉLEKPLC;"OLTVLTB ZL 10 reached a level of easing. The Reserve Bank front-loaded `130590 crore as at a reduction in its repo rate by 50 bps in end-March 2013 as April 2012. Even as elevated inflation against `111558 core and the twin deficits have severely as at end-March 2012, restricted the space for further easing recording a growth of the policy rate since April 2012, subsequent measures were directed of `19032 crore towards ensuring adequate liquidity (17.06%). The total to facilitate a turnaround in credit deposits increased by deployment to productive sectors for `10544 crore (17.12%) supporting growth. As part of liquidity to reach a level of management measures, the CRR was `72116 crore while reduced in two stages by 50 bps in a advances increased by pre-emptive manner to ease monetary `8489 crore (16.98%) and liquidity conditions. Also, the to reach a level of statutory liquidity ratio (SLR) of OPPORTUNITIES, CHALLENGES `58474 crore by end- scheduled commercial banks (SCBs) AND OUTLOOK March 2013. The cost of deposits of was reduced to improve the credit the Bank increased from 6.85% in conditions. Further more, apart from supplying liquidity through daily liquidity The Union Budget 2013-14 has 2011-12 to 7.13% in 2012-13, while adjustment facility (LAF), the Reserve yield on advances improved from projected the GDP Growth for Bank made active use of the auctions 2013-14 at 8% which expected to 11.51% to 11.64%. under outright open market operations boost the demand for credit and TREASURY AND INVESTMENTS (OMOs) and injected primary liquidity other services from the banking of about `1.3 trillion. The judicious use system. The Cabinet Committee on During the current financial year, of the two sets of instruments, i.e., Investment (CCI) has been set up to growth has slowed and inflation keeping the policy rate unchanged over come the slow progress of big remained above the Reserve Bank’s from April to December and proactive projects. The fiscal deficit for the year comfort level. Monetary Policy has liquidity easing measures conferred 2012-13 contained at 5.2% and responded to this evolving growth- dual benefits that were evident as for the year 2013-14 estimated at inflation dynamics through calibrated inflation gradually declined from its 4.8%. The foremost challenges before the Bank continues to be improving its market share both in the State of Rajasthan and on an all-India basis with emphasis on maintaining asset quality, utilizing advanced technology for increase in business and profitability, improving risk management systems, increasing net interest margin, increasing non-fund based business sizably and achieving further improvement in the customer service by adopting best Corporate Governance practices. CORPORATE OPERATIONS BUSINESS PERFORMANCE The overall business of the Bank (deposits plus gross advances) D4BE^LKLGPºLJLTGLS EG-JGVBYCELC; A Spinning Unit "nanced by the Bank 11 WL4K GVKBSK J2 WLC; WLC; GVGÉL LTB ET EKLT. EI SRZVL FTB> PL; FTB WBSKÈPLHMTDLULKHKTGVLLVFTBDVTKHT" `EKLT. HLTYC;H4"GVPZ$ LU WBGSFGSFLHIFTBDLULKFTBJRVGYKLP7 EL W6SK W6S FLQ; ET WLC;% LTBGEMEZ LKTZXN3JLOVFTBPAG J[GSLS MT L7EK W6SFLQ; ELT VHIBHRC;WL4KSIMKIGSFLHIFTBCMFTGMJ2; J[GSLSHLTY LH4" J[GSLSEID SOU;EIYC;"CMET DLOVELKL3FE)LLPVLFTBWL4KD LTSKIHRC; Y4K$ LUWL % LTBGE MBMO FT È-SRS GPºL PL; D4BE EI Y4K $ LU WL PL; ET ET6ÇI DU7 FTB HLZLBGE GPºL FB LI ET ` EKLT. MT J[GSLS VTKLUELTLI LL7TETZ\ ELTGV BG LS D EKPL;FTB `EKLT. J[GSLSWGÉLEH4"LT KÉLLKELTBEI K 12 peak and credit off-take showed thrust to boost growth. The sentiment signs of improvements during most remained bearish on account of of November and December 2012. Eurozone concern. During the year Inflation, however, continues to remain Bank invested in IPOs/OFSs of above the Reserve Bank’s comfort companies with proven record/sound level. fundamentals and also undertook trading in the secondary market to In the 'Third Quarter Review of maximize returns. Monetary Policy 2012-13', Repo rate was slashed by 25 basis points at The Bank’s net investment increased 7.75% against 8.00% earlier, and Cash from `16669 crore as on 31 st March Reserve Ratio (CRR) of scheduled 2012 to `20146 crore as on 31 st banks was also reduced by 25 basis March 2013. The yield on investments, points from 4.25% to 4.0% of their net excluding profits, improved from crore in 2011-12 to `1579.22 crore demand and time liabilities (NDTL). 7.48% in 2011-12 to 7.64% in during 2012-13. Of this, employee Continuing with this RBI again cut the 2012-13. The yield on investment costs increased by 20.46% to `987.53 Repo Rate by 25 basis point in March, including profit improved from 7.67% crore, while total other operating 2013, bringing the Repo rate down to to 8.04% during the same period. expenditure increased by 15.80% to 7.50%. `591.69 crore. FINANCIAL HIGHLIGHTS The yield on the 10 year Benchmark PROFIT security eased to 8.12% from 8.74% NET INTEREST INCOME during the period April to July, however August saw the yield firming up again During 2012-13, the operating profit The Bank's total interest income as a result of cut in SLR requirements. increased to `1712.87 crore, recording From September onwards on the back increased from `6291.36 crore a growth of 14.99% as against of the reform measures announced during 2011-12 to `7498.19 crore `1489.61 crore in the previous year. by the Government and subsequent during 2012-13, recording a growth The net profit recorded a growth of cut in the repo and frequent OMOs of 19.18%. Interest expenditure 11.99% from `652.03 crore in 2011- announced by the RBI, the 10 year increased by 21.19% to `4932.38 12 to `730.24 crore in 2012-13. benchmark yield eased further and crore, as against `4069.96 crore in the DIVIDEND touched a low of 7.78%. This gave previous year. The net interest income us the opportunity to book profit in recorded a growth of 15.50% to GSec. During the year 2012-13, the Bank `2565.81 crore, as against `2221.40 declared an Interim Dividend of 161% Equity market during the first quarter crore in 2011-12. The net interest i.e. `16.10/- per equity share (face of the year was in red mainly on the margin decreased from 3.70% for the value of share `10/- per share) which issues like GAAR & S&P’s negative year ended March 2012 to 3.62% for is 11.03% higher than dividend of outlook on India and increasing the year ended March 2013. 145% i.e. `14.50/- per share declared worry on Eurozone. However the in the previous year. Record date NON-INTEREST INCOME market remained largely in the green for ascertainment of entitlement of territory during the second and third The non-interest income of the Bank shareholders for Interim Dividend was th quarter as a result of various reform has increased by 21.25% from 29 March, 2013. Interim dividend may be treated as final dividend. measures taken by the government `598.97 crore in 2011-12 to `726.28 and continued FII inflows. During the crore during 2012-13. The increase last quarter the market plunged again KEY FINANCIAL INDICATORS during the year as compared to the last as GDP growth failed to pickup and recorded a dismal 4.5% growth in the year is mainly on account of increase The Return on Assets of the Bank third quarter. The negative sentiment in profit on Forex turnover by `51.62 stood at 0.96% during 2012-13 as accentuated further as the Union crore, profit on sale of investment by against 0.99% in the previous year. Budget for FY 2014 presented in `46.96 crore and recovery in Written- The return on equity decreased to the Parliament failed to support the off accounts by `22.21 crore. 15.33% as against 15.66% in the sentiment, though Finance minister previous year. The earnings per stuck to the fiscal deficit targets OPERATING EXPENSES share also increased from `95.05 in and provided measures on social 2011-12 to `104.32 in 2012-13, while infrastructures. The Budget fell short The operating expenses recorded the book value per share improved of any big ticket, policy oriented a growth of 18.67% from `1330.76 from `594.98 in 2011-12 to `678.74 13 ZL 14 in 2012-13. As at end-March 2013, of interest to our esteemed patron the capital adequacy ratio of the Bank customers. stood at 11.81% and 12.16% as per Basel I and II norms respectively, as Despite the gloomy economic against 12.81% and 13.76% as per scenario coupled with RBI’s tightening Basel I and II norms respectively, as at liquidity norms, the bank was able to end-March 2012. This was well above sanction `3309 crores in 1.11 lakh the RBI benchmark of 9%. Due to new advances accounts as against last year's of `2805 crores under rise in NPAs on account of continued various loan schemes in the personal stress faced by the industrial sector banking segment. This year bank has coupled with agriculture NPAs, the recorded a robust growth of 60.86% Bank's Gross NPA ratio and Net NPA and regular meetings by the Top in disbursement of P segment car Management with high value ratio increased from 3.30% and 1.92% loans. During the fiscal 2012-13, customers were held at major centers respectively as at end-March 2012 with fresh sanctioning of 14531 car in the country. to 3.62% and 2.27% respectively, loans, the car loan portfolio grew by as at end-March 2013. The average PERSONAL BANKING 43.53% over March 2012. Our unique business per employee increased innovative technology based initiative, to `900 lakh during 2012-13, as During 2012-13, personal segment 10 Minute On line sanction of Car against `827 lakh in the previous business has crossed `50000 crores Loan rolled out during the last financial year. The net profit per employee mark with `41752 crores of deposits year was also instrumental in pushing improved to `5.91 lakh during 2012- and `9131 crores of advances. The car loans apart from our launching 13, compared to `5.42 lakh during retail deposits recorded an escalation campaigns during the festive seasons 2011-12. The average business per of `6094 crores on the base level of during the year entire fiscal year branch increased to `112.42 crore `35658 crores which is a YoY growth 2012-13 by extending concessions in during 2012-13, as against `104.73 of 17.09% while retail P segment interest rates and processing fee. crore in the previous year. advances grew by `1142 crores taking the retail advances portfolio to To keep in pace with the market trends CREDIT MANAGEMENT `9131 crores. and dynamics, we have reoriented and modified our existing loan The overall credit demand remained The Bank has launched one Incentive schemes such as Home loan, Car subdued during the FY 2012-13, linked Deposit mobilization Campaign loan, Gold Loan and Education loan even though there were signs of for the entire FY 2012-13, to counter schemes by readjusting Interest rates, economic recovery. However, the the fierce market competition posed by Processing fee and eligibility norms. Bank continued to focus on qualitative private players, who are offering higher At the behest of Government Of India, credit growth and faster credit delivery. interest rates to customers post RBI's for providing institutional funding for Total advances of the Bank grew by guidelines for deregulation of interest the students undergoing specialized 16.98% during 2012-13, as against a rate in SB deposits. Apart from this skill development programs in growth of 19.77% during 2011-12. year long campaign, to broaden the recognized institutions one education customer base two more Campaigns loan scheme “Model Loan Scheme The Bank’s Commercial & Institutional to open SB accounts were also for Vocational Education and (C&I) segment advances (other than launched and in the process, Bank Training” was also launched, food credit) registered a growth of has crossed the land mark of having `4705 crore (16.47%), while non-C&I more than One crore SB accounts in The Bank at the behest of MOHRD, segment comprising personal, small its books. During the year we have Government of India is continuing business and agricultural advances opened a record number of 19.31 an Interest Subsidy Scheme for increased by `3809 crore (17.76%) lakh new savings deposit accounts “Economically weaker section during 2012-13. The impetus of as against 11.36 lakh accounts (EWS) on Education loan financing remained mainly towards during the previous year 2011-12. borrowers” and claimed `12.33 infrastructure development, such Year 2012 was also celebrated as crore amount in 8714 beneficiaries as power and road, besides other "Golden Jubilee Year" by the Bank accounts. sectors such as steel, textiles and and to commemorate this memorable non-banking finance companies. event a new 50 week (350 days) term PRIORITY SECTOR LENDING deposit product named 'GOLDEN In view of the prevailing competitive JUBILEE DEPOSIT PRODUCT' was Priority Sector advances continued market scenario, closer interaction also launched by offering higher rate to remain the major thrust area of the 15 DLULKEIÈPAGºLWL4KNMFTBWL JGKPS;VLTB KHSTHR FLQ;ELTKLU-'LLVET PW;LHKILL 16 Bank's business. As at end March which was above the RBI benchmark in March 2013, recording a growth 2013, the Bank's priority sector of 18%. In the state of Rajasthan, of 4.60%. By providing financial advances increased to a level of the agricultural advances stood even assistance under this scheme Bank `20807 crore as against `17690 Crore higher at 34.87% of the Adjusted Net has made the villagers of 42 villages in the previous year. This constituted Bank Credit. completely free from the clutches of 41.61% of the Adjusted Net Bank private money lenders. Credit, against the RBI benchmark The Bank has issued 111911 Kisan of 40%. Priority Sector Advances in Credit Cards (KCCs) with sanctioned FINANCIAL INCLUSION (FI) Rajasthan stood higher at 65.85% of amount of `2018.99 crore during the Rajasthan's ANBC as on 31 st March, financial year, taking the total number Our Bank has embarked upon its 2013. of KCCs to 515520 as at end-March journey to implement the FI initiatives 2013. The bank issued 53615 new in the unbanked service area villages AGRICULTURE KCC with a growth of `951.68 in through ICT enabled banking production credit, which constituted correspondent outlets. 794 business Lending to agriculture remains one of 11.61% growth of New KCC and Correspondents have been engaged the major thrust areas of the Bank. The amount wise growth of 19.58% after to cover 823 villages and brick and flow of credit to agriculture increased sale of `400 crore crop loans through mortar branches have been opened from `6825 crore in 2011-12 to `8376 IBPC. The Bank has added 189 new in 6 villages to cover 829 villages crore in 2012-13, recording a growth farmers per rural and semi-urban with population of 2000 and above of 126%. The outstanding level of branch during the year. allocated to our Bank for providing agriculture advances increased by banking services by 31.03.2012. In In order to bring the farmers out of 1.73% from `9032 crore as at the end these villages 229652 accounts have the clutches of the money lenders, of March, 2012 to `9188 crore as at been enrolled. the Bank introduced a Debt Swap end of March, 2013. Our Bank’s total Scheme in the year 2008. During 2012- direct agriculture lending is 89.81% Now the concept of coverage under 13, assistance disbursed under the amounting to `8252 crore, and has FIP has changed and as per new Debt Swap Scheme stood at `56.71 registered a growth of 13.94%. Due concept, a BC has to cover all the crore, benefiting 12118 farmers. The to change of priority sector guidelines villages falling in a Gram Panchayat. outstanding assistance under the a major portion of indirect Agriculture We have 1878 Gram Panchayats in scheme increased from `291.19 crore has been classified under MSME and our Bank's service area in the state of as at end-March 2012 to `320.44 this has impacted the overall growth in Rajasthan. Out of these, in 369 Gram crore as at end-March 2013. The Agriculture Advance. Panchayats our Brick and mortar number of beneficiaries under the branches are functioning and in 792 Agriculture credit constituted 18.38% Scheme also increased from 70377 Gram Panchayats we have already of the Adjusted Net Bank Credit, in the previous year to 73583 farmers engaged BCs/BCAs. The remaining 717 Gram Panchayats, will be covered by engaging CSCs as BCAs/ Individual BCs / BCAs of any other Corporate BC who can work on KIOSK model, developed by TCS for SBI Group. Financial Literacy: Bank is actively involved in Govt. of India sponsored Swabhimaan campaign enlightening the rural populace about FI initiatives. Pamphlets, brochures detailing the advantages of Bank accounts are distributed in FI villages to educate the rural public about the Bank's FI initiatives. Our Bank has already set up Financial Literacy & Credit Counseling Centres (FLCCs) in all the nine Lead Districts to impart literacy among rural population. These FLCCs FLVVI ET6O[I Y[LFILGPELMFB LI+IU KLFKFTL Hon'ble Union Rural Development Minister Sh. Jairam Ramesh Awarding RSETI have conducted 304 literacy camps D4BEELTWLKMT7IWBLLKIWPL.;OTSTHR Stakeholder Award to Bank and counselled 38759 persons during 17 GUMFTBY[LFILDTKLTUYLK RPELTBELT ET ML'L UVPKI ELT MHFGS GPGPÉL0 PML LTB 'LLGDUZIELELF> J LJKH-SL\LKEKJBUI EDVY LH4" GMZLC;>E&* X7KFK&FSWLGOETDLKTFTB SE WLÉLLK JBUI V FTB ÈGLG\LSGE LY L"CVÈGLG\LS ÈLGÉLEKL ^LKL QL4DIM ZL 18 the year 2012-13. Apart from this, the based payment system (APBS/ As at end-March 2013, the Bank has also set up 8 R-SETIs to NACH) through National Payment outstanding credit to Micro and Small train the potential Small Entrepreneurs Corporation of India (NPCI) gateway. enterprises has increased by 25.46% to start their own ventures / business Seeding of Aadhaar Number in CBS to reach a level of `8127.36 crore, / entrepreneur for self employment in account is under progress. as against `6477.96 crore as at end- rural areas. The 8 R-SETIs have so March-2013. far trained 27616 rural unemployed MICRO, SMALL AND MEDIUM youth for various trades i.e. electric ENTERPRISES (MSMEs) The Bank has continued its thrust to work, tailoring computer repair etc. provide collateral free loans to MSE units under the credit guarantee Out of 27616 trained persons, 14762 Micro, Small and Medium Enterprises scheme of CGTMSE. During the year, persons belong to BPL families (MSME), the main growth driver of Bank provided new collateral free the Indian Economy, accounts for Aadhaar Project of UIDAI: UIDAI has loans under Credit Guarantee Scheme 35% of manufacturing sector output, been setup by the Government of CGTMSE to MSE units amounting 40% of India's exports and provides of India with a mandate to issue a to `78.85 crore. unique identification number to all employment to more than 6 crore the residents in the country based on persons in 1.5 crore enterprises. LOAN TO WOMEN BENEFICIARIES demographic and biometric data of Accordingly, the Bank has also been the individual. UIDAI has entered into according high priority to this area. As at end-March, 2013, 2.05 lac Partnership with the Govt. and other accounts of financial assistance were The Bank has assisted 4473 new agencies including Banks leveraging provided to women under different MSME units during the year 2012-13. their existing infrastructure. These schemes of the Bank with a total In order to boost MSME advances, we agencies are called the Registrars outstanding of `2732.85 crore exists. of UIDAI. Our Bank has also signed have revised our existing loan schemes an MoU with UIDAI on 22 nd January viz. financing against Ware House ASSISTANCE TO MINORITY 2011 and has become a registrar in receipts, Transport Operator Loan COMMUNITIES, WEAKER SECTIONS this project. Our bank has undertaken Scheme, Marble Plus Loan Scheme, AND SCHEDULED CASTES / SCHEDULED Aadhaar enrollments through an Construction Equipment Loan TRIBES enrollment agency in the state of Scheme, SME Car Loan Scheme. Rajasthan. More than 24 lac Aadhaar We have also entered into MOUs with As at end-March 2013, assistance enrollments have been done till JCB India Ltd., Tata Motors Ltd & to minority communities stood at 31.03.2013 and 17.40 lac Aadhaar Ashok Leyland Ltd for booking fresh `1043.26 crore spread over 78776 numbers have been generated so far advances. We have reduced spread accounts. and thus SBBJ is no. one among all on our base rate for MSME advances Financing to weaker sections stood at the Associate Banks. Our Bank has twice during the year and our interest `8237.10 crore benefiting 8.32 lakh successfully implemented Aadhaar rates are now very competitive. persons as at end-March 2013. The ratio of assistance to weaker sections as a percentage of Adjusted Net Bank Credit is 16.47% as at end-March 2013. This was above the benchmark of 10% prescribed by RBI. The outstanding assistance towards Scheduled Castes (SCs) / Scheduled Tribes (STs) stood at `1966.78 crore in 202556 accounts under priority sector as on 31st March 2013 GOVERNMENT BUSINESS The Bank conducts Government Business on behalf of State/Central Government departments through 490 authorized branches. Income Tax, Central Excise, Service Tax, Value D4BE^LKLU JRKFTB MDIDIUTF4KL'LVELWL LTUV SBBJ Marathon Organized by the Bank at Jaipur added tax etc. are collected through 19 D4BE VT PL; ET OL4KLV FLÉ FMT `EKLT. EIMHL SL VT7PE;ETFLÉ FMTGV L;SELTB!WL LSELTB> VC; F M FC;CELC; LTBELTMHL SLJ[OLV OIYC;"FLQ;>ELTMFL*SWPGÉLSE W6 GVPLMI PB WGVPLMI Y[LHELTB ELT EI"PL;ETOL4KLV F M FC; EFULTK PY; ET MFROL ET ZL 20 physical challans and also through base of `950 crore in March 2012, of debt/ through courts/ Debt the electronic mode. The Bank has registering a growth of `299 crore Recovery Tribunals (DRT). established a Centralized Pension (31.47%). Our export credit stood at Processing Centre (CPPC) which `2334 crore at the end of March 2013 As at end - March 2013, the Bank had calculates as well as credits pension against `1931 crore of March 2012, 27 large sick/ weak units on its books to the accounts of pensioners across recording a growth of `403 crore with aggregate outstanding of `364.13 all the branches. We also have an during the financial year. In percentage crore. There are 31 Corporate Debt Online Treasury Branch for online terms, the growth was 20.87%. Restructuring cases with aggregate payment of Salary of Rajasthan Govt. exposure of `1193.20 crore and 25 employees on behalf of the State The Bank chairs the local chapter BIFR cases with exposure of `413.78 Government and presently our Online of Foreign Exchange Dealers' crore. The Bank has been acting as Association of India (FEDAI). The Treasury Branch is processing about 9 BIFR's Operating Agency in 6 cases. Bank is an active member of FEDAI, lacs State Govt. transactions received During the year under review, 15 International Chamber of Commerce through 18000 digitally signed files in accounts with aggregate exposure of (ICC) and Clearing Corporation of a month. During 2012-13 commission `808.52 crore have been restructured India Limited (CCIL). income from Government business under CDR mechanism as warranted was `114 crore. INDUSTRIAL REHABILITATION basically by the tight economic INTERNATIONAL BANKING scenario. Sustained efforts are Rehabilitation/ restructuring of undertaken by the Bank in restructuring the accounts and post sanction close The Bank provides Foreign Exchange potentially viable industrial unit related services to exporters/ remains an important thrust area of monitoring and follow up have resulted importers, other resident and the bank. For this purpose, the bank in retaining most of the restructured non-resident customers through a has its own Industrial Rehabilitation assets as Standard Assets. Policy containing detailed guidelines network of 66 Authorized Category NPA MANAGEMENT "B" and 184 category ‘C’ branches for undertaking rehabilitation/ revival and 4 Trade Finance Central package and the same is updated The Bank continues with its Processing Centres (TFCPC). Bank's from time to time. Whenever units are multipronged strategy of controlling forex dealing room at Mumbai and all found non viable or not responding the authorized category ‘B’ branches to the rehabilitation/ restructuring Non-Performing Assets (NPAs) through are equipped with latest technology package, focus is shifted to recovery intensive monitoring of large value for real-time communication and are of Bank's dues through legal recourse accounts, close follow-up with DRT/ connected through SWIFT network such as action under SARFAESI/ BIFR, restructuring of viable accounts with more than 750 offices of foreign compromise settlement/ assignment and effectively utilizing the remedies banks throughout the world. The Bank maintains 20 NOSTRO accounts in all major currencies and non-account correspondent banking relationship with all major banking groups in the world. To facilitate NRI customers for inward remittances, there is online remittance facility and tie-ups with 5 Gulf based Exchange Houses. Our 231 branches are authorised for payment of Western Union Money Transfer. The Bank also undertakes proprietary Forex trading to increase profit by taking advantage of market movements. Our Merchant forex turnover stood at `26717 crore at the end of March 2013, as against `19652 crore of last financial year, recording a growth of `7065 crore (35.95%) during the year. Our NRI deposits stood at `1249 crore D4BE-ELQG.GU7ZCV%ZRUVWPL.;J[L*SEKSTHR Bank Received 'Skoch' Digital Inclusion Award at the end of March 2013 against the 21 J2T.LC; >CB7KVTLVZQ4&DM;WL8J2EL8FM; JRVM;BKGQSGE LY L"D4BE^LKLJRVM;BKGQS JFTBJ[ LTYGE LY L"CVMLÉLVLTBET WLC;MIMI PB %ZI GKBY ELKJLTKTLV HR H4B"6 L LZ LTBETML'LWVRPS;V PB J[GSLS PBJ[GSLS KHLH4" GVJLOV LGQELOLG 22 available under the SARFAESI and RODA Acts. Due emphasis has been given to follow up with the courts and filing of Execution Petitions. During the year, 'Recovery Camps', Bank Adalats and Lok Adalats were organized for NPA recovery, the results of which were quite encouraging. The progress in NPA /AUCA recovery is being discussed / reviewed by the Management Committee by conducting Video-conferencing with all the Zones and DGM headed branches. To contain the growth of NPAs, MIS data based on system tracking is being extensively used. Hon'ble Union Finance Minister, Govt. of India, The accounts in SMA / probable NPA FLVVI GPºLFB LI>)LLKSMKELK>+IJIGQO&DKF D4BEEISKJ2MT+IWFKU4VFTG.EZGKZIJ2 Sh. P. Chidambaram Donating an Ambulance category are also discussed in every to Shri Amar Jain Medical Relief Society Jaipur MLTML 7IU JRKELT &DRZTBMEIQLDIJ[OLVEKSTHR video conferencing to regularise the on behalf of Bank position and to avoid any account Committee (CRMC), Asset Liability Indicator Approach for Operational slipping into NPA. The level of SMA / Management Committee (ALCO), Risk. Under Pillar-II of NCAF, the Bank Probable NPA are also brought down Market Risk Management Committee has assessed capital requirement for by removing technical snags. The (MRMC) and Operational Risk 2012-13 for other risks in its Internal 'Loan Tracking Center' monitors and Management Committee (ORMC) Capital Adequacy Assessment tracks the irregular standard accounts provide support to RMCB. These Process (ICAAP) document, a copy from Head Office level. Pre-emptive sub-committees are required to place of which has been submitted to measures such as restructuring etc all critical issues/ development in their RBI. Basel-II Disclosures have been are also taken as per RBI guidelines. respective areas to RMCB. The Bank made by the Bank in the Annual By adopting the above measures and has Credit, Market and Operational Report as also on Bank's website utilizing the provisions of SARFAESI Risks Management Policies for as part of the Pillar-III guidelines of Act effectively, Bank also received a identification, measurement and NCAF. number of acceptable compromise management of major risks. These policies are reviewed and updated BASEL III: In order to improve the proposals which resulted in good from time to time, keeping in view quality of capital and address the recovery in NPA. Though there the dynamic business environment. liquidity risk issues, Reserve Bank of has been recovery/upgradation of Integrated Risk Management India has issued final guidelines on accounts to the tune of `696.61 Department (IRMD) at the Head implementation of Basel III Capital crore, the gross NPA and net NPA Office, functions under a Dy. General Regulation in India. These guidelines levels increased to `2119.49 crore Manager. The IRMD acts as the nodal will be implemented in phases and `1303.28 crore respectively with centre for coordination with other w.e.f. 01.04.2013. With a view to the gross NPA and Net NPA ratio at departments/ operating units engaged improve market discipline under 3.62% and 2.27% respectively as on in managing risk in their respective Pillar III of Basel II framework as also 31.03.2013. business areas. to improve transparency of capital base, draft guidelines on disclosure RISK MANAGEMENT STRUCTURE CAPITAL FRAMEWORK requirements has also been issued OF THE BANK by Reserve Bank of India. The Bank BASEL II: Under Pillar-I of the New is ready for a smooth transition to Basel III regime. The Bank has an independent Risk Capital Adequacy Framework (NCAF) Management Framework in place. guidelines issued by Reserve Bank of CREDIT RISK At the apex level, there is a Risk India, the Bank is computing Capital Management Committee of the Board to Risk Weighted Assets Ratio (CRAR) Credit Risk management remains a (RMCB), which oversees the policies using Standardised Approach for major task for Bank and receives prime and strategies for Risk Management Credit Risk, Standardised Duration attention. Control and monitoring in the Bank. Credit Risk Management Approach for Market Risk and Basic of credit risk is dealt with as per the 23 HTSRMLFBU- DVLVTEIETBÇI -'LZEL D4BE EI ML 24 Board-approved Loan policy and monitored through Structural Liquidity Credit Risk Management, Credit Risk Reports and Traditional Gap Analysis Mitigation & Collateral Management respectively. The structural liquidity Policy of the Bank. These policies report is being prepared and reviewed cover methodologies for measuring, on a daily basis as per RBI guidelines. monitoring and control of credit risk. In Both the risks on Foreign Assets order to control the magnitude of credit & Liabilities are being monitored risk, prudential norms on benchmark, through Maturity & Positions (MAP) financing ratios, single borrower or and Sensitivity to Interest Rate (SIR) borrower-group exposure, industry statements. The monitoring of liquidity specific and sector-specific exposure, on a dynamic basis, over a time exposure to sensitive sectors, hurdle Basel-II guidelines for Credit, Market horizon spanning 1-90 days, is in and Operational Risks. Letter of rate for taking a fresh exposure etc. place. Duration Gap Analysis is also Intent (LOI) for Credit Risk has been have been set up. Credit appraisal used to manage interest rate risk for submitted to Reserve Bank of India, systems and a clearly defined the entire balance sheet. for assessing Bank's preparedness delegation of powers form an integral to move over to advanced approach. The Asset Liability Management Policy, part of the Bank's Loan policy. LOI for Market and Operational Risks coupled with Investment Policy of the MARKET RISK will be submitted soon. Internal Bank specified various prudential Rating Based (IRB) Approach for limits for management of Liquidity To monitor market risks and treasury Credit Risk, Internal Models Approach and Interest Rate Risks. The Bank is operations, mid-offices (domestic (IMA) for Market Risk and Advanced regularly monitoring these limits. A & forex) are functioning at IRMD. Measurement Approach (AMA) for comprehensive Contingency Funding Scenario Analysis on market risk Operational Risk will be followed under Plan and a system of daily monitoring covering events such as decline in advanced approaches, on approval of inflows & outflows of deposits are stock markets, rise in bond yields and from Reserve Bank of India. The in place for managing Liquidity on a foreign exchange rate movements are advanced approaches will not only day-to-day basis. Calculation of Value conducted regularly as per the Stress help the Bank to maintain Economic at Risk (VaR) on Foreign Exchange Testing Policy of the Bank to assess Capital, but will also strengthen the Forward Positions and Stress Testing resilience of Investment portfolio. risk monitoring and control aspects. on Liquidity, Interest rate and Foreign Exchange Open & Forwards Positions OPERATIONAL RISK PROJECT GANGA is also undertaken. One of the major tools for managing Since augmentation of capital is not INTERNAL CONTROL, INSPECTION operational risk is to put in place a well only costly, but its availability is also AND AUDIT established internal control system, scarce, efforts are being made for which includes segregation of duties, optimum utilisation of the existing The Bank has in place a well clear management reporting lines capital. 'Project Ganga', which has established independent audit system and adequate operating procedures. been launched in Bank on 16.10.2012, and structure to ensure adequate Most of the operational risk events are aims at conservation of capital by internal control for safe and sound associated with weak links in internal improving data quality. Cleansing of operations. Internal Audit is carried control systems or laxity in complying data will lead to computation of the out under Risk Focused Internal with the existing internal control Risk Weighted Assets of the Bank Audit (RFIA) as envisaged under Risk procedures. The Bank has developed more accurately and ultimately result Based Supervision of RBI with focus suitable systems and procedures for in lesser requirement of capital. on assessment of risk and internal managing and control of operational control mechanism. risks. ASSET LIABILITY MANAGEMENT The branches have been categorized PREPARATION FOR ADVANCED A comprehensive Asset Liability into three groups as per risk perception APPROACHES OF BASEL-II Management (ALM) System is in and are subject to varying degrees of place for effective management audit. During 2012-13, 664 Branches Bank has decided to move over of Liquidity Risk and Interest Rate and 57 Cells under Business Process to advanced approaches of Risk. These Risks are assessed and Re-engineering (BPR) initiatives have 25 MTGE LULSLH4")LLKSI GKUP;D4BEET WLBSGKEWBET\LLETWBSY;SLL 26 been subjected to internal audit. of funds etc. establishments; Making payment No branch of the Bank remained just with the MMID (Mobile Money MOBILE BANKING overdue for audit as on 31.03.2013. Identifier) of the beneficiary in secure 104 branches and 35 BPR initiatives manner on 24X7 basis. The upper Mobile Banking facility introduced in covering 67.81% of advances ceiling for remittance or payment of the year of 2009, for our customers including non-fund based business bills is same as in Mobile Banking having a Savings / Current Account. facility. and 41.12% of deposits have been The product is named "State Bank placed under continuous surveillance Freedom". Presently, there is upper AUTOMATED TELLER MACHINES (ATMS) through concurrent audit. Besides ceiling of `50000/- for fund transfer 13 Head Office Department are also and for purchase of goods / services The Bank has installed 12 new subjected to concurrent audit system. per day with in overall calendar month networked ATMs during the year IS Audit Cell is in place to conduct limit of `250000/-. In order to make to take the tally of ATMs to 1087 IS audit of major IT establishments the registration process more robust All the ATMs are connected to the including Core Banking project , Zonal and to eliminate the threat of frauds/ network of State Bank Group ATMs, Computer Centres, etc. in accordance phishing attempts, the registrations thereby enabling more than 51.50 are enabled over ATM/CBS only if the lac cardholders of the Bank to have with RBI directives and Bank's IT mobile number entered matches with access to over 29504 ATMs of the Security Policy. the mobile number already available in State Bank Group all over the country. As at end March 2013, 99.89% the customer’s CIF in CBS. Our Saving Bank customers can also of the Bank's branches was rated access ATMs of other Banks free of INTERBANK MOBILE PAYMENT charge up to five transactions per "Well Controlled" and "Adequately SERVICES (IMPS) Controlled". month, including balance enquiry, subject to a maximum of `10000/- RECONCILIATION OF INTER- “Interbank Mobile Payment Service” per transaction. OFFICE TRANSACTIONS now renamed as "Immediate Payment Service" (IMPS), was launched in our INTERNET BANKING bank in the year of 2012 for enabling As per the RBI guidelines, all the our Bank customers to use mobile All branches are enabled to offer entries need to be reconciled within instruments as a channel for remitting Internet Banking facility to our retail a period of six months from the date funds or to make various utility as well as corporate customers. of their origin. By the end of March payments at shops and commercial Looking to the rapid increase in the 2013, the bank has reconciled inter- branch transactions originated up to 28.02.2013 i.e. well before the time limit prescribed. The Bank is committed to performing better than the target set by RBI and shall aim at reconciling all the entries within two months of their origin. INFORMATION TECHNOLOGY CORE BANKING SOLUTION (CBS) All our branches are running successfully on Core Banking Solution. We were able to provide better customer satisfaction and services by providing many Value Added Services like; multi functional ATMs, Internet Banking, flexi deposit scheme, multi city cheque facility, instant credit of local and outstation cheques, introduction of RTGS/ NEFT D4BE^LKLGPºLJLTGLSJ2ZGP¹TSL A Fruit Vendor "nanced by the Bank and SBGRPT for the faster settlement 27 MBJ6VGE LULMESLH4"GDZLTBETÈTLL ETGZ EVC;MRGPÉLL?WLC;EZT%7 CZT%7L8GVE)LRYSLVÈLLZI L)LRYSLVEIWGÉLESFMIFLPHIH4ULT ELLR)LLKB)LGE LY LH4"GUMFTBGVGÉL LTB WLK7IUI M> VC; J27I PB FLTDLCZD4BGEBYFTBH4B" ETWL8VZLC;VMBY[HLEIMRGPÉLLÈOLV MDIUIWLKJI7IELÈ LTY EIULSIH4" -PQLGZS7TZKFLIV 7I F S3ELZMEZGVJ7LV WLK7IUI M E È3 \L PBWÈ3 \LEKLTBETWL8VZLC;V 3PGKS)LRYSLV PBGVJ7LVÈLLZIH4 PB D4BEVTJXKTPL;ETOL4KLV 7I FVT7PE; )LRYSLV )LI CB7KVT7 D4BGEBY MT GE L UL VTLVZCZT%7GVEGVGÉLWBSKL VC; J27I EIERZMB< LD EKHLTYC;H4" KHL H4" HFLKT Y[LHE WD ETBÇ MKELK )LLKSI GKUP;D4BE^LKLÈQLGZSWBSKD4BE M)LI 7I F-7T7D4BEMFXHETVT7PE;MT ETWL EK>MTPLEK>N3JLOLR:E>MIFL UR.TH4BCMMTD4BEETZL 28 usage of Internet banking worldwide, payment to 10000 plus merchants / Customer gets sanction letter instantly the Bank has introduced several new billers. Steps have been taken to further on submitting completely filled features during the year. Apart from increase the merchants / billers list. application form on Bank's website if transferring funds from their account he fulfills the eligibility criteria. to another account in our Bank, our Bank has taken steps to increase customers can now transfer amount awareness about Internet banking GREEN CHANNEL COUNTER from their account to any other among staff as well as customers. account in any bank (through RTGS/ Meeting with staff of Corporates and Bank has implemented "Green NEFT), TDS enquiry for Term Deposits Institutions were regularly held, to Channel Counter" facility at our 508 from the comfort of their homes or popularize online payment of taxes a branches of Rajasthan , Delhi NCR, offices, opening/ closing of e-TDR/ facility of "Zero Balance Internet Current Mumbai, Bangalore and Ahmedabad. e-STDR/ e-Recurring Deposit (RD) Account" has been introduced. It is a paperless, eco-friendly and easy account, facility to view the details of facility which would enable customers Income-Tax deposited (26-AS). The ELECTRONIC PAYMENT SYSTEMS: to pre-process selected transactions transaction rights with single ID up USAGE OF RTGS, NEFT & SBGRPT in a branch. This shall be carried out to `5.00 lac per day per user for using a Transaction Processing device (TPD) placed at a Single Window small corporate customers, named Real Time Gross Settlement (RTGS) Operator's (SWO) terminal and linked 'CINB Saral', has been provided. is an instant payment and settlement with the desktop of the SWO and Retail Internet Banking facility for system and National Electronic Fund visually challenged persons has also integrated with the CBS application. Transfer (NEFT) is a scheme for inter- been made available. For Corporate This TPD would act as a transaction customers, a new facility 'I - Collect', bank funds transfer operated by the pre-processing device, which would for on line collection of funds has been RBI. Our Bank has taken several be used by customer to enter data for provided. measures to increase usage of RTGS a particular transaction authenticated and NEFT system. All branches of our by the four digits PIN provided for Online payment of direct and indirect bank are RTGS & NEFT enabled. Our the ATM-cum-Debit Card. The facility taxes have been enabled in our customers can make their inter-bank provides safety and comfort to the Internet banking. Our customers can remittances in a faster and secured customers by avoiding filling up of now pay online Income Tax, Service manner at very nominal cost, on any withdrawal forms / cheques / pay in Tax, Excise Duty, Customs Duty of RTGS / NEFT enabled branch of other slips and quicker service. Central Government, Value Added Tax (VAT) and Central Sales Tax (CST) banks in India. SB Group Payment SALARY & OTHER PAYMENT of Rajasthan State Government and (SBGRPT) functionality for electronic Bank has developed an application Maharashtra State Government. funds transfer within State Bank Group for centralized electronic processing EGRAS and facility for online collection is also available for customer. of Rajasthan State Govt. Salary and of all Tax and non Tax revenue of other Payments from a centralised Rajasthan Government. Facility of SMS UNHAPPY branch identified as 'Online Treasury online payment of Professional Tax of Branch, Jaipur'. The Project has been Maharashtra State Govt. has also been The "Project SMS Unhappy" launched successfuly implemented in the Bank provided. Facility of online application by the Bank with the objective to and is smoothly handling Inter Bank for IPOs through our internet banking provide a simple and economical way Salary Payments through NEFT and portal www.sbbjonline.com with to the customers to represent their ASBA (Application Supported with grievances and reduce complaint GRPT Other Govt. Payments e.g. Blocked Amount) facility where resolution time drastically, to below Utility Bills (Electricity and Telephone), investor customer continue to earn 48 hours, thereby enhancing the Vendor Payments, Scholarship interest during the application process customer satisfaction level and Payments, Employees Medical Bills, is available to internet banking users. creating a loyal customer pool. Bonus, Aadhaar Based Payments through APBS/NACH (for Individual Facility of online booking of Railway / INSTANT LOAN SANCTION Payments through Govt. Bills). Air Tickets has been widely accepted. At present the system is handling Electronic payment of railway freight Bank is providing the facility of online the volume of 7 to 10 lac records (E-Freight) is gaining popularity. We instant sanction of Housing Loan and with 15000 to 18000 files consisting have integrated number of Aggregator Car loan to the customers under the of approx. `1500 crores per month to our online system to provide the head "Home Loan in 20 minutes" and through this application. With the facility of wide range of merchants and "Car Loan in 10 minutes" respectively increase in APBS/NACH payments utility billers to our Internet Banking on Bank's website http: //www. the volume is expected to increase users. Our customers can now make sbbjbank.com/. multiple folds in near future. 29 HLT PBHFLKTD4BEPTDMLC7JKWLPTOVJ L MKELKIGDZLTB^LKL0 G%SGPLTL)LRYSLV JXP;OºL ÈIJT. EL.; ELTJXL;S)LKEK)LTUVTJKSRK6SL HTSR )LRYSLV MJ2ZSL JXP;E GE L UL ` ÈI JT. EL.; C;UT. JT EL.; ELT MB-PIEAGSJ LGFZUL YL" KHLH4" GPLTLJ MT PTSV)LLTYI 0 G%S LTB S'LL Y[IVQ4VZELNB7K PS;FLV FTB H G*ZETLV MT UTD 30 ONLINE LOAN TRACKING SOFTWARE threats and risks to our IT assets KNOW YOUR CUSTOMER/ANTI have increased manifold. To control MONEY LAUNDERING /COMBATING OF Bank has introduced a web based these threats and risks the Bank has FINANCING OF TERRORISM MEASURES application for Online Tracking of Loan a comprehensive IT and Information Bank follows Reserve Bank of India/ application for customers and status Systems (IS) Security Policy that Government of India guidelines on of their application can be viewed by addresses all these concerns Know Your Customer/ Anti Money the customers on internet through our including maintenance of customers' Laundering / Combating of Financing Bank's website. confidentiality, security and integrity of of Terrorism. Prescribed documents data. State Bank's data centre where NEW DEBIT CARDS relating to the identity and address our CBS data base resides (both at the are obtained from customers while Primary and Disaster Recovery Site) opening their accounts. The following new range of Debit has already acquired the accreditation Cards for 'P' segment customers has for the international standard for With the objective of Universal been rolled out by the Bank: Information Security Management Financial Inclusion, Bank facilitates i. State Bank Classic Debit Card Systems ISO/IEC: 27001: 2005. All opening of 'Small Account' by migrant (Magstripe) ; the Banking applications have built-in labourers, street hawkers and other security features like access control, poorer sections of the society, with ii. State Bank Silver International data encryption and transmission limited KYC documents. Debit Card (Magstripe) ; and through secured channels as per In order to identify and examine iii. State Bank Gold International requirement of the application. The suspicious transactions, the Bank Debit Card (Magstripe). threat of virus and worms is minimized has installed the AMLOCK software by having a centralized anti-virus Bank is also planning to introduce besides setting up an ANTI Money solution. EMV (Euro Pay, Master Card and Laundering Cell at the Head Office. Visa) compliant Chip based cards Adequate Firewalls and Intrusion The customers' accounts have been very soon. These are presently under Detection Systems are in place so as divided into different risk categories testing and would be available for to prevent unauthorized access to the and alerts are generated once any issuance to the high value customer network. The security of the network segments: transaction exceeds a predefined is being managed by Network threshold limit. These alerts help in i. State Bank Gold International Management Consultants of the Bank. identification of suspicious transactions, Debit Card (Chip + Magstripe) ; The Disaster Recovery Plan (DRP) and which are further reported to Financial and Business Continuity Plan (BCP) for all Intelligence Unit, Government of India, ii. State Bank Platinum International branches are in place. in appropriate cases". Debit Card (Chip + Magstripe). PREPAID CARDS Bank has introduced the Rupee Pre- paid Card (eZPay Card). It will be useful for students and others, who undertake only one or two transactions in the month and maintain account for the purpose. The Rupee Pre-paid Card (eZPay Card) is equally useful for the Corporates, who have to make various payments to their staff or contractual labour. The cards can be reloaded and can be used in any ATM or with any POS merchant, any number of times during their validity period. INFORMATION TECHNOLOGY (IT) SECURITY FLVVI GL\LLFB LI>KLU-'LLVMKELK>MKELKIGP]LZ LTB Hon'ble Education Minister, Rajasthan State With the efforts of the Bank to Inaugurated Scheme of one Water Puri"er by FTBD4BE^LKLPL7K* XGKJ2L KZYLVTEI LTUVLEL every Branch to a Government School popularize IT enabled services, the LR)LLKB)LEKSTHR 31 J L;*S J2L KDL8Z PB WBS)LT;OV MBMXQVL LLTBEIGVYKLVI EKMESLH4"CMETWGSGK%SPHD4BE ÈLLGZ L CB7XUV G.7T%LV GM-7F ETPTDMLC7JKNJZ$ÉLJ2LF;FTBWJVI MFRGQSJMTEL ;KSH4BSLGEVT7PE; UXV FTB D4BE ^LKL P4 G%SE PB GLEL SWL8VZLCV)LIOU;EKLMESLH4" M FC; 32 LOAN TRACKING INTEGRATED CUSTOMER (a) No. of Complaints pending 61 The Bank had set up the Loan Tracking GRIEVANCES REDRESSAL at the beginning of the year Centre (LTC), a Centralized Outbound MECHANISM (ICGRM) (b) No. of Complaints 5959 Call Centre at Jaipur in June 2011, In a series of Bank's techno driven and received during the year(*) for follow-up of Personal and SME Go-Green initiative towards customer (c) No. of Complaints 5949 Segment Loan accounts in IRAC4, service, Integrated Customer Grievance redressed during the IRAC3, IRAC2 and IRAC1 categories Redressal Mechanism (ICGRM) year(*) to avoid slippages of account into software has been operationalised for (d) No. of Complaints pending 71 a hardcore NPA. Subsequently in FY 2013-14 with a view of speedy and at the end of the year 2012, the LTC started following up timely redressal of grievances with (*) Excluding 1593 Complaints found irregular AGR accounts also. The Call the leveraging of technology. It will not sustainable. Executives at the LTC make calls to facilitate on-line up loading, comments B. Awards passed by the Banking the borrowers, where contact details and closure of complaints at various Ombudsman (BO) (Position upto are available in CBS, in a sustained levels which ultimately result in cost- March 2013) manner to recover the overdue time saving with speedy redressal / amount and upgrade accounts in co- logical conclusion thereof. The MIS (a) No. of unimplemented 01* ordination with Branches / CPCs. data base of the same will be helpful Awards at the beginning of CUSTOMER SERVICE: in initiating corrective action / measure the year to eliminate root-cause of complaints (b) No. of Awards passed by the 09 Customer Service is a top priority for and excelling customer service at Banking Ombudsman during the Bank. Our 'SMS Unhappy', 'Car branches. the year Loan in 10 min', 'Housing Loan in 20 (c) No. of Awards implemented 05** min' & 'Mission Five' have gone a long DISCLOSURE OF COMPLAINTS/ during the year way towards this (d) No. of unimplemented 01 UNIMPLEMENTED AWARD OF Awards at the end of the The meetings of the Customer Service BANKING OMBUDSMAN :- year(Appeal has been made Committee of the Board and Standing before Appellate Authority) Committee on Customer Service In terms of RBI circular DBOD.No.Leg were convened at regular intervals BC.60/09.07.005/2006-07 dated * Appeal allowed and award passed to review the position of customer 22.02.2007, the information in respect by BO set aside by the Appellate service rendered. Similar Committees of customer complaints and awards Authority. are also functioning at Branches, passed by the Banking Ombudsman ** In remaining three cases, in 1 case is given in the Table below :- Zonal and Head Offices, which helps BO Jaipur has cancelled the award. In in continuous improvement in service A. Customer Complaints (Position 2 cases complainant has not accepted standards. upto March 2013) the award. The Bank is a member of the Banking Codes and Standards Board of India (BCSBI) and has voluntarily adopted a 'Code of Bank's Commitment to Customers,' which sets a framework for setting a minimum standard of banking services to be provided by the banks. The Bank has put in place a multi pronged grievances redressal mechanism to suit varied customer requirements. An aggrieved customer can either make a written complaint at branch / regional / zonal / head office of the Bank or make an online submission in the form provided on MLFLGUEMTPLEL ;¹FD4BE^LKLJ[OºL Community Service Programme: Donation of the Bank's website / through e-mail 7L MLC;E:M>-7T7D4BEMFXHETWÉ \L+IJ[SIJ Tricycles by Chairman Sh. Pratip Chaudhuri against acknowledgement. QL4KI^LKLJ[OLVEIYC; 33 W Y[LHEGLEL STB FLQ;EIG-'LGS HFLKTD4BEETHIH4 >EL ;GOPMMT KHIH4GUMMTLL 34 ATM COMPLAINTS extended to more branches. Bank being created. operates 11 city-centric loan CPCs, To monitor the ATM failed transactions viz. Retail Assets Central Processing UÊ Linkage of all the branches related customer complaints received Centre (RACPC)/ Small & Medium with LCPC for SB accounts at the branches, ATM Complaints Enterprises City Credit Centre completed. (SMECCC)/ Retail Assets and Small Reconciliation Cell has been established Shifting of back office activities & Medium Enterprises City Credit at Head Office. Reserve Bank of India to loan CPCs, implementation of Cell (RASMECCC) in end-state at has prescribed that all ATM related revised roles for branch functionaries 10 centres with 231 branches linked complaints be resolved within 7 and better ambience in branches to them. Coverage of Rural Central working days. For faster resolution/ not only improved the Bank’s image Processing Centre (RCPC) increased redressal of complaints, an online but also helped the linked branches to 299 branches at 19 centres. 17 ATM Complaint Management System to focus more on customer service Relationship Managers-Medium (ATMCMS) has been developed and marketing for business. BPR Enterprises (Hub Model) are working and implemented. During the year initiatives in the Bank are set to at 13 major business centres. 2012-13, the Bank has received improve the quality of service further 41191 ATM failed transactions related as also to increase the market share in complaints, out of which 40975 Non loan CPCs/ initiatives, viz. Liability Central Processing Centre business by leveraging technological complaints were resolved. No home changes. bank complaint (where customer and (LCPC), Trade Finance Central Processing Centre (TFCPC), Currency ATM both belong to our bank) is pending CURRENCY MANAGEMENT for more than 7 working days. Administration Cell (CAC), Central Pension Processing Cell (CPPC), Being the Bank having the highest THE RIGHT TO INFORMATION (RTI) Clearing CPC (CCPC), Multi Product Sales Team (MPST), Relationship market shares in Rajasthan, RBI has Manager-Personal Banking (RMPB) designated 199 branches as Currency The Right to Information (RTI) Chest branches in the state and 16 Department was constituted at the have helped in further improvement in customer service. The coverage of branches for other parts of our country. Bank’s Head Office in December,2010 All of our Currency Chest branches for better coordination and effective various non loan CPCs / initiatives as on 31.03.2013 vis-à-vis 31.03.2012 are undertaking the following activities implementation of the Right to in an efficient Manner: Information Act, 2005. The applications was as under: received are disposed efficiently in a 1. Circulation of New Currency CPC / Initiative Branches Covered time bound manner as per provision Notes among Public. 31.03.2012 31.03.2013 of the Act and the appeals are also LCPC 486 996 2. Distribution of Coins to the redressed in time. TFCPC 116 122 Public. During the year ended 31.03.2013, the CAC / SCAB 136 155 3. Exchange of torn /damaged/ Clg. CPC 206 224 RTI Deptt. received 1558 applications soiled/ Mutilated notes. under the RTI Act, 2005, out of which CPPC 792 844 1530 applications were disposed and Branch Re-design 159 185 4. Providing of linkage facilities to branches of other banks which 28 applications were awaiting disposal During Financial Year 2012-13, are linked to them. as on 31.03.2013. All the pending 28 following developments took place to applications are less than one month old. make CPCs / initiatives more effective 5. Our 16 branches are providing facilities of Note exchange and Besides, the Deptt. also received and to optimize gains: rd 97 appeals under the RTI Act,2005 coins distribution on 3 Sunday UÊ Rural CPC at Sribijaynagar started of every month. during the year ended 31.03.2013 functioning w.e.f. 31.05.2012. and all these 97 appeals stood CROSS SELLING disposed by the Appellate Authority UÊ SCAB, Jaipur (erstwhile CAC-I as on 31.03.2013. and CAC-II) started functioning The Bank continues to market life from 17.09.2012 at Collectorate, and non-life insurance, mutual fund BUSINESS PROCESS Jaipur premises. and credit card products in order to RE-ENGINEERING UÊ At Jaipur centre, 3 CPCs viz. augment its non interest income. For the purpose, the Bank has in place tie up Business Process Re-engineering RACPC, LCPC, CCPC were arrangements with SBI Life Insurance (BPR) Initiatives stabilised further shifted to a single premises where Co. Ltd., SBI General Insurance Co. during 2012-13 and their coverage a 'National Back Office Centre' is 35 JA#EL L;ZIVG¹ LEZLJLTBELT LJ[G¹ L E&JVI GZGF7T.> MDIWLC; J2B. P+IWFKU4VFTG.EZGKZIJ2MLTML 7I ET6O[LTBFTBW6SGKSHLTVT>LL VT MDIWLC; ZLC;J2 CB LTKTBM E&JVI st D4BEEIFC;ELTWL LTGUSWBLLKELTBEI 51 Annual General Meeting of Share holders GZGF7T.> MDIWLC; UVKZ CB LTKTBM PIBPLGL;EMLLKLM)LL held at Jaipur on 24 th May 2012 36 Ltd., SBI Funds Management Pvt. been amongst the major strategies monitoring the Annual Credit Plan Ltd. and SBI Cards and Payments of the Bank in pursuit of financial and other developmental and poverty Services Pvt. Ltd. Various campaigns inclusion. The Bank continued to eradication schemes launched by were launched for marketing of these play a pioneering role in financing Govt. of India, Govt. of Rajasthan and products, which helped in getting a entrepreneurs under various total income of `17.82 crore from government sponsored schemes. The NABARD. Target allotted for Annual cross selling activities. position under various Government Credit Plan to our Bank for the year sponsored schemes as at end-March, 2012-13 is `2743 crore, against COMMUNITY SERVICES BANKING 2013 is as under: - which achievement of our Bank up to March 2013, is `3810 crore, recording Scheme Number of Amount As a responsible Corporate Citizen, 139%. the Bank continues to undertake Bene$ciaries sanctioned during Community based Social activities $nancial MICRO CREDIT such as tree plantation, free medical year (` camps including blood donation crore) At the end of March, 2013, the Bank camps, establishing of water huts & Swarn Jayanti 2102 9.52 has credit linked a total of 41349 Self water coolers, sports competitions, Shahri Rojgar Help Groups with an outstanding honouring meritorious students etc. Yojana (SJSRY) amount of `265.89 crore, out of During the year 2012-13 the Bank Prime Ministers 749 34.00 Employment which 34128 accounts are of women donated Rupees Two Crores for Generation relief Measures towards Rajasthan beneficiaries with an outstanding Programme amount of `138.46 crore. NABARD Chief Minister's Relief Fund and one (PMEGP) has ranked the Bank as number one ambulance each to Acharya Tulsi Swarn Jayanti 4079 47.26 Cancer & Research Centre, Bikaner, Gram Swarojgar in Rajasthan State for its performance Sewa Bharti Samiti Udaipur, Navjeevan Yojna (SGSY) under Micro Credit continuously from Sansthan Jodhpur & Sri Amar Jain Artisan Credit 661 2.87 the year 2004-05 to 2008-09. In the Card Scheme Medical Relief Society Jaipur and one year 2009-10 our Bank has secured first position in Rajasthan for Micro Veterinary ambulance to Sri Gopal LEAD BANK SCHEME Goverdhan Goshala Pathmeda were Credit as per "Status of Micro finance made available. in India 2009-10" published by The Bank has Lead Bank responsibility NABARD. During the year 2010-11, Besides, one water purifier by every in nine Districts in the State of our Bank secured 2nd position in SHG branch of bank to its nearby Rajasthan viz. Bikaner, Barmer, Credit Linkage. During the year 2011- Government School, financial Hanumangarh, Jaisalmer, Jalore, Pali, 2012 our Bank secured first position in assistance to "Rays-Aasha ki ek Sirohi, Rajsamand and Udaipur. The SHG SB linkage and second position kiran "working for HIV+ve children, in SHG Credit linkage. distribution of Jaipur Foot & Tricycles Bank has been implementing and to physically challenged persons, three delivery vans to the ISKCON food relief foundation for transportation of Mid-day meals to under privileged children studying in Govt. School, one digital X-Ray machine to Mahaveer International Dungarpur providing Medical relief to the poor & tribal patients were made available. Branches of the Bank continued to adopt one girl child each from a poor family with an objective of providing financial assistance for pursuing studies in Government/Municipal schools. GOVERNMENT SPONSORED SCHEMES Laying utmost emphasis on D4BE^LKLGPºLJLTGLSMIFTB7CELC; A Cement Unit Financed by the Bank Government sponsored schemes has 37 MKELK ^LKL J[L LTGUS ML 38 RURAL SELF EMPLOYMENT Sirohi, Sriganganagar, Bikaner, at Sambhar was inaugurated by our TRAINING INSTITUTES (RSETI) Hanumangarh, Jaisalmer, Barmer, Hon'ble Union Finance Minister, Jodhpur, Nagaur, Jaipur and Dausa. Govt. of India Sh. P. Chidamabaram In order to impart job- oriented skills SBBJ continues to provide managerial on 22.12.2012. As at the end of to rural unemployed youth, the Bank support and financial assistance by March 2013, the total branches has set-up seven RSETIs at Bikaner, way of refinance etc. to Marudhara stood at 1037, of which 373 are rural Gramin Bank. All branches of Hanumangarh, Barmer, Jaisalmer, branches, 291 semi-urban branches, Marudhara Gramin Bank are on CBS Jalore, Sirohi and Nathdwara (Distt. 188 urban branches and 185 metro Rajsamand). The Bank has also set up a platform and provide Electronic Fund Transfer facility. Marudhara Gramin branches. The number of branches in Skill & Entrepreneurship Development Rajasthan has increased to 855 which Institute (SEDI) at Jaitaran, Distt. Pali Bank has deposits of `4811 crore is the largest among all banks. Out of in association with Ambuja Cement and advances of `3365 crore as on these, 643 branches are located in Foundation (ACF). 31.03.2013. Marudhara Gramin Bank recorded profit before tax of `3.05 rural and semi-urban areas which play By the end of March 2013, 27616 crore and net profit after tax of `2.11 an important role in rural development candidates have been imparted crore during 2012-13. and poverty alleviation in the State. training for various local demand jobs in these institutions and with the help BRANCH EXPANSION HUMAN RESOURCES of this training,3756 candidates have DEVELOPMENT been engaged in various jobs and During 2012-13, the Bank opened 90 12467 candidates have started their new fully computerized branches. As The Bank’s staff strength as on own ventures. 5093 youth linked with part of the Golden Jubilee celebrations 31.03.2013 is 12831 employees, with Bank Finance of `29.66 crore. of the Bank, our Bank's 1000th Branch the following break up: - FINANCIAL LITERACY AND Category of Break up of Employees Out of which CREDIT COUNSELLING CENTRES staff SC ST General Total Women Minority (FLCC) Ofcers In order to educate farmers and other Clerical people in rural / urban areas with regard Sub-Staff to various financial products, various Bank schemes and services available Safai Karmchari from the formal financial sector, the TOTAL Bank has set up 9 Financial Literacy and Credit Counseling Centres (FLCC) in all nine lead Districts in Rajasthan. These FLCCs are providing awareness service free of charge. Up to 31.03.2013, 38759 persons have been counseled by these centres. REGIONAL RURAL BANK "The MGB Gramin Bank (RRB sponsored by SBBJ) and Jaipur Thar Gramin Bank (RRB sponsored by UCO Bank) were amalgamated into a single Regional Rural Bank named 'Marudhara Gramin Bank' sponsored by SBBJ vide Government of India's notification dated 25.02.2013. Marudhara Gramin Bank with Head office at Jodhpur has a network of 458 branches spread over in 12 districts namely; Pali, Jalore, FHLFGHFKL5 JLZKLU-'LLV^LKLD4BEELT-P BMHL SL Hon'ble Governor of Rajasthan Awarded MFXHFTBN:ZT 39 EI M)LI LL 40 Out of the Bank’s total staff strength the ever changing customer needs. During the current financial year, we as on 31.03.2013, 2813 (21.92%) We have also conducted training have deputed 7 officers for specialized belong to SC and 1196 ( 9.32%) to programmes on Management Skills programmes held abroad in many ST categories. Reservation policy for first time posted Branch Managers places like - 45 th annual meeting of is implemented in our Bank as per during the FY 2012-13. Asian Development Bank (ADB) held at Manila (Philippines), Annual meeting Government guidelines. Apart from in-house training, the of IMF & World Bank at Tokyo (Japan), Bank has provided facility of training Necessary complement of staff has Beyond boundaries overseas training to its officers in specialized areas been made available for working at Harvard Business School, Boston at apex training institutes like State in new frontiers like core banking (USA), Advanced Management Bank Academy Gurgaon, State Bank solution, tele-banking, internet Programme on towards the next orbit: Staff College, Hyderabad, SBIICM Indian Banking sector at New Delhi & banking, ATMs, credit/debit cards, Hyderabad, SBIRD Hyderabad, CAB- Europe, overseas training in Finance marketing, cross selling, business Pune, and IIBF-Mumbai. During the Driving Corporate Performance, process re-engineering etc. The Bank said period 1175 officers have been China, Programme on Leadership has been according high priority trained at these external agencies in and Managing People at Pennsylvania to training and sensitization of staff the areas of Core Banking Solution, (Philadelphia). members to respond to the customers’ Forex, Fraud Detection, Market Risk expectations and deliver modern Management, Risk Management, We have taken a new initiative -by banking facilities in the technology NPA Management, Stress Assets launching of "Gyannodaya" e-learning driven environment. Management, Legal option of recovery, portal of SBBJ which will inculcate a HR, SME, ATM, Behavioural science, culture of self learning amongst the Qualitative training for human International Banking & Appraisal employees. A scheme of deputing resources has become necessary for of high value Credit Proposal. For top executives (GMs and DGMs) of improvement in the efficiency of human Various other programmes we have the bank for one training programme capital. In this era of globalization, also deputed our officers to Indian of their choice, at reputed external privatization of banks and new Institute of Banking & Finance training institutions, has been started. management concepts, the Bank has (IIBF), NIBM-Pune, CAB-Pune, and Similarly, we are also taking up steps to give high priority to training needs CAFRL-Mumbai etc. to human resources to enable them to cater the needs of its esteemed customers. Looking to these facts, a total no of 6641 employees of all categories, including 300 employees of the sponsored RRBs,were provided training opportunities on various subjects related to banking and technology at all the three STCs of the bank during the year. The bank has also provided pre recruitment training to 297 SC/ST candidates appearing in the written test for recruitment of clerical cadre and officer cadre during the year. In addition to this 35 seminars/ workshops were conducted on various topics to up-date skills of employees. More thrust has been accorded to Mobile Banking Internet banking, ATM services Soft skills, System & Procedures, Marketing, quality DIELVTKFTBWL LTGUS¦7N3MPFTBD4BEEIGPOTLI Bank's Foreign Exchange Stall in the Camel Festival at Bikaner services to the customers in view of GPGVF -7L8Z 41 PL;ETOL4KLVGPOTLLTBFTBWL LTGUS GL V ULTÉLJRK PBGO:ZI PBOLTFHLJ[D6ÉLELTBELT LTUVLETSHSEF;QLGK LTBETGZ DIFL D4BEEIFGVZLFTBWL LTGUSPIBPLGL;E ELKJLTKT7 D4BGEBY ET J FTB U JRK WL4K EPK `ZL 42 to arrange training programme on Barakhamba Road, New Delhi branch harmonious and cordial relations leadership development for all AGMs and Park Street, Kolkata branch were with both supervising as well as of the bank in reputed external upgraded from AGM's to DGM's. workmen employees enlisting institutions. Another portal "Training their total commitment, support In light of revised organizational Needs" has been developed to make and cooperation. The Employee’s structure, the composition of various on-line self nomination for the choice Union and Officers’ Association non-board committees functioning at training by the officers upto scale IV have extended their wholehearted the Head Office was also revised. cadre. cooperation for the all-round growth STAFF WELFARE of the Bank. A well established and ORGANISATIONAL PLANNING an on going consultative machinery The Bank believes in keeping With a view to improving the levels is functioning at various tiers of the the morale and motivation of the of supervision, organizational administration for resolving issues employees high, considers employees effectiveness and overall efficiency, through joint consultations and as its most important assets and one additional position of Chief General negotiations. accords high priority to their welfare. Manager was created. The Chief The Bank undertook staff welfare VIGILANCE ADMINISTRATION General Managers were designated activities like granting scholarships to the as Chief General Manager - Retail meritorious wards of the employees, Vigilance Administration is an integral Banking and Chief General Manager providing free medical consultancy part of the management. Accordingly, - Commercial Banking. Functionalities services at various hospitals etc. vigilance activities are being accorded among Chief General Managers were Insurance cover for employees to high priority in the Bank. Keeping in allocated. Seven additional positions the extent of `8.00 lac (`16.00 lac view the paramount importance of of General Managers were also for accidental death) under group preventive vigilance, greater emphasis created. While 7 GMs were posted at insurance scheme of SBI Life, Waiver is laid on the preventive measures. Head Office, 5 GMs were posted in of housing loan of the deceased The preventive vigilance comprises the field. 3 such GMs would lead the employees, Overdraft limit (Personal the dissemination of knowledge and 3 Retail networks and 2 GMs would loan), PF loan and Conveyance loan precautions, to be exercised by the lead the corporate networks. Roles (upto `3.00 lac) and Special award operating staff while discharging and responsibilities of the General of `10000/- for education (one time their duties. During the year, we have Managers were circulated and field payment) to one ward of the deceased conducted five training programmes GMs were equipped by entrusting employee. Reimbursement of funeral at various training centers, where adequate discretionary powers. expenditure is being made to the extent 137 participants were benefited. In of `10000/- from staff welfare fund. many training programme conducted Keeping in view the availability of Annual Health Check-up scheme has at STC Jaipur, Chief Vigilance Officer significant business potential in and been extended to the spouse of the has interacted with participants on all around Alwar, which is one of the employees (age of employee between banking areas with focus on "How to fastest growing industrial estates, 41 to 49 years). Besides, relief to the be a Vigilant Employee." Preventive a new Alwar Zone was created. For employees, who are on leave without Vigilance Committee set up has been greater focus on the AGM headed pay on sick ground, `15000/- per revamped. Accordingly, branches branches to accelerate business month upto 24 months during the having staff strength of 10 or more, BPR growth, such branches were brought entire service period is being extended. initiatives irrespective of staff strength, under the control of a separate DGM The Bank has set up holiday homes unsatisfactory rated branches and by creating a position of DGM (Special at Jaisalmer, Chandigarh, Mussoorie, fraud detected branches, have been branches). This would also enable the Jaipur, Manali, Mumbai, Goa, Delhi, included for formation of Preventive DGM, Delhi Zone to improve attention Haridwar, Katra , Bengaluru, Mt. Abu Vigilance Committee. Meetings of over regions, and intensify efforts for and Udaipur. Various cultural and preventive vigilance committees are inclusive growth. sports activities were organized during arranged, where staff is sensitized in regard to the preventive vigilance With a view to improving supervision the year. measures. Complaints received in the and monitoring of large corporate INDUSTRIAL RELATIONS Vigilance Department are dealt with accounts as also to ensure professional expeditiously and in a professional services to such customers, the The Bank has a long history of manner. In order to decide vigilance incumbency of IFB, Jaipur branch, 43 ELT D4BE FTB J[L'LGFESL J[OLV EI ULSI *ZIETB7 S'LL DTHSK ?J[I MTB%LV ._ X GMSBDKFTBD4BEETEL L;Z LTB!LL 44 angle, complaints received in the made all possible efforts to achieve AUDIT Vigilance Department are put up to the targets set by Official Language the Internal Advisory Committee. Deptt. Ministry of Home affairs, Govt. State Bank of India, with the Significant emphasis is laid on of India. concurrence of the Reserve Bank of the transparency in the tendering India, approved the appointment of 6 process (procurement of goods and Bank continued its efforts to promote firms of Chartered Accountants viz. S. services, auctions etc.) by the Bank. use of Hindi in the field of Information Daga & Co. of Hyderabad, Agarwal The tenders issued by the Bank are Technology. A portal of Rajbhasha Anil & Co. of Delhi, M K Aggarwal uploaded on the Bank's website as Vibhag was made available on Bank's & Co. of Delhi, Chaturvedi & Co. well as Government of India website. infonet site. Various useful materials like of Kolkata, Uberoi Sood & Kapoor The department is publishing its in- Hindi typing tool, format of Quarterly of Delhi and PSD & Associates of house magazine titled as “Vigilance Progress Report, Annual Programme Jaipur as the Bank's Statutory Central Bulletin” on quarterly intervals. Certain etc. were made available on the portal. Auditors for the year 2012-13. The new initiatives have been taken as Officers/employees were imparted scope of audit covered 587 branches/ preventive measures like Electronic training to work on computer in Hindi centralized processing units as against Voucher Verification, Online Tracking with the help of Unicode. 860 branches/ centralized processing of status of loan application by the Hindi Day and Hindi-fortnight were units covered in 2011-12. applicant, better pre-sanction due celebrated in Offices/Branches of diligence process etc. RESPONSIBILITY STATEMENT the Bank in the month of September The department has disposed of 242 2012 and various competitions were The Board of Directors hereby states: complaints, 59 Investigations have conducted for the staff members. been initiated and in total 51 cases An All India Hindi Essay competition 1. That in the preparation of the of investigations have been disposed was conducted by the Head Office. annual accounts, the applicable of. 60 preventive vigilance inspections The winners of the competition were accounting standards have were conducted. The constant awarded certificates and prizes. To been followed along with proper supervision of the cases resulted in a increase progressive use of Hindi explanations relating to material disposal of 75 vigilance cases, during 'Head Office Rajbhasha Trophy' departures; the year 2012-13. competition (Head office and Zonal level) was organized during the year. 2. That they have selected such USE OF HINDI accounting policies and applied Bank's quarterly in House Rajbhasha them consistently and made The implementation of Official magazine "Upwan" is being published judgments and estimates that Language Policy in the Bank is not regularly. For last year this magazine are reasonable and prudent so as only a statutory requirement but also had been awarded by Reserve Bank to give a true and fair view of the a business need. The Bank made all of India. state of affairs of the Bank as on possible efforts to comply with the the 31 st March 2013, and of the The third Sub-committee of Parliament statutory provisions relating to the profit or loss of the Bank for the on Official Language visited the official Language Policy of the Govt. of year ended on that date; Bank's Shiv Marg, Jaisalmer Branch India during the year and took several at Jaisalmer. Honourable members 3. That they have taken proper and initiatives to provide benefit of Bank's of the committee appreciated the sufficient care for the maintenance different schemes to the masses efforts undertaken by the Bank in field of adequate accounting records through Hindi Language. of Official Language implementation. in accordance with the provisions During the year 2012-13, the Bank Representative of Govt. of India also of the Banking Regulation Act, made significant progress in promoting visited our Head Office and Zonal 1949, and State Bank of India and propagating the use of Official Office Jaipur and appreciated our (Subsidiary Banks) Act, 1959 Language and ensured compliance of efforts. Our Jaipur Zone had been for safeguarding the assets of various other statutory requirements awarded Second Prize by Bank the Bank and preventing and framed under the Official Language TOLIC, Jaipur for official Language detecting frauds and other Act /Official Language Rules. The Bank implementation. irregularities; and 45 GE LH4"ZT 46 4. That they have prepared the shareholders and the public at large commitment, sense of involvement annual accounts on a going for their patronage and confidence and dedication exhibited by each concern basis. reposed in the Bank and places staff member and constructive role on record its deep appreciation. played by the Employees’ Union and CORPORATE GOVERNANCE The Board of Directors thanks the Officers Association in the overall Government of India, State Bank of development, growth and prosperity The details on Corporate Governance India, Reserve Bank of India and other of the Bank. are annexed. regulatory agencies for their valuable support and guidance throughout the For and on behalf of the Board of ACKNOWLEDGEMENT year. Directors The Board of Directors is grateful to The Board of Directors places on Delhi B. Sriram the valued customers, esteemed record its deep appreciation of the 6th May, 2013 Managing Director 47 EL8KJLTKT7WG)LLLMV EKVL>ZLYSELTÉ LVFTBK 48 CORPORATE GOVERNANCE BANK’S CODE OF CORPORATE UÊ Establish clearly documented GOVERNANCE and transparent management BANK’S VISION AND MISSION processes for policy development, Adoption of best corporate implementation and review, The Bank has codified its ethos, governance and practices is the first decision-making, monitoring, values, culture and aspirations in its step in realising the goals set forth in control and reporting. Vision and Mission statements. The our Vision and Mission statement and UÊ Provide free access to the Board Vision and Mission statements were accordingly the Bank has adopted its to all relevant information, advice, last revised in the year 2009-10 and code of Corporate Governance: resources as are necessary to the revised statements are as under:- enable it to carry out its role The State Bank of Bikaner and Jaipur effectively. Vision: “To be a state-of-the-art, is committed to the best practices in customer-centric, values driven and the area of Corporate Governance. UÊ Ensure that the Managing Director professionally managed banking The Bank believes that proper has line of responsibility for all organisation; committed to the Corporate Governance facilitates aspects of executive management highest standards of good corporate effective management and control of and is accountable to the Board governance practices; perpetual business, which in turn, enables the for the ultimate performance of enhancement of the wealth of the Bank to deliver the best results to all the Bank and implementation shareholders and welfare of all its stakeholders. The objectives can of the policies laid down by the stakeholders and the society”. be summarised as: Board. The role of the Managing Director is also guided by the Mission: “To provide one stop UÊ To enhance shareholders' value. State Bank of India (Subsidiary solutions to all the banking needs Banks) Act, 1959 and Subsidiary UÊ To protect interests of share of customers through a highly Banks General Regulations, 1959 holders and other stakeholders with all amendments. motivated, professional and efficient including customers, employees human resources pool with quality and society at large. UÊ Ensure that a senior executive is of service, customer care and made responsible to the Board customers’ business in focus by UÊ To comply with directives of to ensure compliance with all efficient use of Information Technology RBI, SEBI and other regulatory applicable statutes, regulations in a cost effective manner; meeting authorities. and other procedures, policies as the expectations of all stakeholders laid down by the Board and report UÊ To ensure transparency and through transparent, true and deviation, if any, to the Board. integrity in communication and fair disclosures and responsive to make available full, accurate management principles in all the BOARD OF DIRECTORS and clear information to all activities; to strive to fulfil corporate concerned. The State Bank of Bikaner & Jaipur social responsibility with special was formed in 1963 by amalgamation emphasis on financial inclusion UÊ To ensure accountability for of the State Bank of Bikaner & State throughout the State of Rajasthan and performance and to achieve Bank of Jaipur. The Bank is governed aiming to provide the best banking excellence at all the levels. by State Bank of India (Subsidiary services to one and all”. Banks) Act, 1959 and Subsidiary UÊ To provide corporate leadership Banks General Regulations, 1959, as The major distinguishing features of the of the highest standard for others amended from time to time. Board revised vision and mission statement to emulate. of Directors is constituted according was laying emphasis on being state-of- to the provisions of the Act and also the-art bank, adopting good corporate THE BANK IS COMMITTED TO: complies with the provisions of the governance practices, welfare of Listing Agreement entered with the all stakeholders and the society, UÊ Ensure that the Bank's Board of Stock Exchanges. providing one stop solution to all Directors meets regularly, provides The Board of Directors is headed by customers, efficient use of information effective leadership, exercises the Chairman of State Bank of India, technology in a cost effective manner, control over management and monitors executive performance. as ex-officio Chairman of the Bank. transparent/ true/ fair disclosures, Other members of the Board are; the responsive management principles, UÊ Establish a framework of strategic Managing Director (Executive), two fulfilling corporate social responsibility control and continuously review nominee Directors (one from the Govt. and implementing financial inclusion in its efficacy. of India and other from RBI), not more the State of Rajasthan. 49 HRWL"D4BEMF MF JKMBLLTGÉLS)LLKSI D4#ELTBFTBMH)LLGYSLETGZ J[GS$L4#E MT J[D6ÉL GVOTLE GV R%S GE L Y L" -7T7D4BE MFVRLBYID4BE WGÉLGV F ` MT LR:EEL)LRYSLV +I GLP ERFLK VT ELT PBMFVRLBYID4BEMLFL6 GPGV F GE LULSLH4"D4#EFTBLLGFZHLTVTET WGÉLPGL;SLJKJHRBQVTETELKLJO3 LY MT LLGMS HLTSL H4" GVOTLE F.Z EL GZ WÉ \L>D4BEETJ[D6ÉLGVOTLES'LL GE L" Y#VWGÉLGV FFTBGPGVGO;7J[LPÉLLVLTBET GVOTLE> ULT )LLKSI -7T7 D4BE> )LLKSI +IÈOIJERFLKML6 LZ >NJFHLÈDBÉLE WVRMLKGE LY LH4"ULT-7L8E %MQTBU GKU P;D4BE PB)LLKSMKELKETWGÉLELKI MH LTYI PB MFVRLBYI MFXH )LLKSI MXQIDLÉ SLMF L4STETNJD6ÉLLTBEI)LI H4B>ELTLR:EEL)LRYSLVVHIBGE LULSL -7T7 D4BE> +I DI KFTL DLDX ET WVRJLZVLEKSLH4" H4" FC; ELT EL8JLT;KT7 EL L;Z MT -'LLVLBSGKSHLTVTETELKLGVOTLEFB.ZFTB M)LIY4KEL ;JLZEGVOTLELTBVT H LLTLLL GVOTLEF.ZELVTSA3P)LLKSI -7T7D4BE MT )LLKSI -7T7 D4BE ^LKL ET WÉ \L ^LKL -7T7 D4BE WL8J2 DIELVTK EIH4GENVEL-7T7D4BEWL8J2DIELVTK VLGFSGE Y " . U JRK ET JOTV WÉ \L ET J FTB .U JRKETML'LELTC;WLG'L;EMBDBÉL +IFSIFLG:PELGM6HL >FR< FHLÈD6ÉLE> GE LULSLH4"D4BEETGVOTLEF.ZET VHIBH4" )LLKSI GKUP;D4BE>VC;GO:ZI>)LLKSI W6 MO- CMJ[ELKH4BJ[D6ÉLGVOTLE PL;FTBJ[D6ÉLGVOTLE -7T7 D4BE MFVRLBYI D4BE WGÉLGV F EL ;JLZE > OLT VLGFS GVOTLE E ELT)LRYSLVGE LY LPTSV PB EIÉLLKLEINJÉLLKL ET )LLKSMKELKMT PB E)LLKSI GKU P;D4BE )LºLT 50 than 5 Directors nominated by State S. Name Salary & Incentive Perquisites Tax on Total Bank of India, of whom not more No. Allowance Perquisites than 3 shall be officers of that Bank 1 Shri Shiva Kumar 1628031.48 1269500.00 239000.00 118176.00 3254707.48 (nomination of non-official director by SBI shall be in consultation with SITTING FEES PAID TO nominated on the Board by SBI on Central Government) , one Director DIRECTORS IN 2012-13 01.12.2012 vice Shri A. K. Deb, who each from employees - workmen relinquished the office on 30.11.2012 and non workmen, respectively and A sum of `1065000/- was paid as on his superannuation. not more than three Directors elected total sitting fees to the Directors for the in the prescribed manner by the meetings of the Board and its various Shri Mihir Kumar, Director, Govt. of shareholders (including nominated by India, Ministry of Finance, Deptt. of SBI). Committees during the financial year 2012-13. Financial Services (Banking Division) At present, besides the Chairman and nominated by Govt of India, a Director the Managing Director, there are 10 BOARD OF DIRECTORS : CHANGES under clause (e) of sub-section (1) of Directors on the Board including three DURING THE YEAR the Section 25 of the SBI (Subsidiary Directors elected/ nominated by the Banks) Act 1959, vice Shri Amrik shareholders. Shri B. Sriram, appointed as the Singh and joined the Board on Details of attendance of each Managing Director of the Bank's Board 12.12.2012 Director at the meetings of the w.e.f 01.03.2013 under clause (aa) of Shri Shyamal Acharya, Director, Board of Directors and number of sub-section (1) of section 25 of the under clause (c) of sub-section (1) of other Committees of the Board of State Bank of India (Subsidiary Banks) the Section 25 of the SBI (Subsidiary Directors in which he is a member or Act, 1959 vice Shri Shiva Kumar who Banks) Act 1959 demitted the office chairperson are given in annexure I(a) relinquished the office on 28.02.2013 after being shifted from his present and I(b) respectively. Brief resume of on his reaching superannuation. the other non-executive Directors are assignment as DMD & GE (A&S) State also presented in Annexure II. Shri Pradip Kumar Sanyal, Dy. Bank of India on 29.11.2012. General Manager (A & S Group), SBI The Directors are paid sitting fee Shri Sanjeev Sharma, Director, nominated on the Board by SBI on of `10000/- for attending every under clause (d) of sub-section (1) of meeting of the Board of Directors 13.06.2012 vice Shri B. Ramesh the Section 25 of the SBI (Subsidiary and `5000/- for attending meetings Babu, who relinquished the office Banks) Act 1959 demitted the office of the various Committees of the on 22.05.2012 on his transfer from after completion of his tenure on Board (w.e.f. 18.10.2011) apart from Corporate Office. reimbursement of usual traveling and 14.05.2012. , Chief General halting expenses. Sitting fees are not Smt. Malvika Sinha The Board of Directors places on paid to the Chairman, the Managing Manager, Reserve Bank of India, New record its deep sense of appreciation Director and the Directors who are Delhi nominated by Reserve Bank of for the valuable contributions made officials of SBI, RBI and Government India, a Director under clause (b) of by Shri Shiva Kumar, Shri Shyamal of India. sub-section (1) of the Section 25 of Acharya, Shri A.K.Deb, Shri B. the SBI (Subsidiary Banks) Act 1959, All the non-executive Directors have Ramesh Babu, Shri Rajesh Verma, Shri vice and joined declared that they do not have any Shri Rajesh Verma Sanjeev Sharma and Shri Rajendra pecuniary relationship vis-à-vis the the Board on 22.08.2012. Kumar Shah during their association Bank. Shri S.D. Bali, Officer Employee with the Board and welcomes the new SALARY AND ALLOWANCES PAID Director nominated by Central Directors on the Board. TO THE MANAGING DIRECTOR IN Government under section 25(1)(cb) BIO-DATA OF THE NEW 2012-13 of the Act, joined the Board w.e.f. DIRECTORS OF THE BOARD 01.11.2012 vice Shri Rajendra A sum of `3254707.48 was paid Kumar Shah who demitted the Brief resume of the Directors who as total remuneration to Shri Shiva office on his superannuation on joined the Board of Directors during Kumar, Managing Director during the 31.10.2012. 2012-13 is furnished below: - financial year 2012-13. It includes tax on perquisites paid by the Bank and Shri Rajeev N. Mehra, Chief Shri B. Sriram, Managing director, incentives as given below: General Manager (A & S Group), SBI has 31 years experience in SBI. During 51 +I WFKIE GMBH ET -'LLV JK )LLKS (Public Debt Office) >D4BGEYJ ;PT\LL MLÉLLKLM)LLEID4#ETB MKELK^LKLGVOTLEVLGFSGE Y WL4K GP)LLY> D4BGEY JGKQLZV PB GPELM D4BE ET WBLÉLLGK LTB EI PL; MTGVOTLEFB.ZFTBLLGFZ GP)LLY> MKELKI GP)LLY PB D4BE 52 the 31 years span of his career with 20.04.2012, 11.05.2012, 24.05.2012, Board SBI, he handled various assignments 24.07.2012, 17.08.2012, 26.09.2012, EXECUTIVE COMMITTEE OF THE as General Manager and Chief General 03.11.2012, 22.12.2012, 01.02.2013, BOARD (EC) Manager. Prior to assuming charge 27.02.2013 and 23.03.2013. Details as Managing Director, he was Chief of the attendance of the Directors are The Executive Committee of the Board General Manager (Delhi Circle). as per Annexure I (a). is constituted as per the regulation 38(1) (a), (b) and (c) of the Subsidiary Smt Malvika Sinha has worked in GENERAL BODY MEETINGS : Banks General Regulations 1959, and RBI Mumbai, Patna and New Delhi consists of Managing Director, three st handling departments of Foreign 51 Annual General Meeting of the Directors nominated under clause (c) Exchange, Public Debt Office, shareholders of the Bank for the of sub section (1) of Section 25 of financial year 2011-12 was held at Department of Banking Supervision, the SBI (SB) Act, 1959 by State Bank Maharana Pratap Auditorium, Jaipur Department of Banking Operations of India of whom not more than two on, 24.05.2012 at 11.30 a.m., was & Development, Department of Govt shall be officers of the State Bank of attended by the following 10 Directors and Bank Accounts & Secretary India, and one Director elected by the on the Board: Deptt. Currently, she is handling Deptt shareholders under clause (d) of sub of Non-Banking Supervision, Issue Shri Pratip Chaudhuri Shri Shiva Kumar section (1) of Section 25 of the Act. Deptt and Foreign Exchange Deptt in Shri Shyamal Acharya Shri Amrik Singh The Committee was last reconstituted on 09/07/2012. Any other Director New Delhi. Shri Kunal Dalmia Shri A. K. Deb wishing to attend the meeting has Shri Rajesh T. Manubarwala Shri Bharat Rattan Shri Rajeev N. Mehra Chief General an option to do so. The Executive Manager, has more than three Shri Rajendra Kumar Shah Shri D.K. Jain Committee, apart from the special or decades experience in SBI. During The previous two Annual General general directions of the Board given his career with SBI, he handled various Meetings for the financial year from time to time, is empowered to assignments as General Manager and 2009-10 and 2010-11 were held at take decisions in respect of all current Chief General Manager. Jaipur on 02.06.2010 (11.30 a.m.) and business of the Bank. 06.06.2011 (12.00 noon) respectively. Shri Pradip Kumar Sanyal, Dy The meeting of the Executive General Manager, A&S Group, CC, COMMITTEES OF THE BOARD Committee is required to be held at SBI, Mumbai and having experience least once in a calendar month. 16 of banking of 32 years. The Board of Directors has constituted meetings of the Executive Committee 9 Committees of the Board, viz. were held during the year 2012-13 Shri Mihir Kumar Govt nominee {details given in Annexure 1(c)}. Director and is IAS, presently posted 1. Executive Committee of the as Director, Deptt. of Financial Board AUDIT COMMITTEE OF THE BOARD (ACB) Services, Ministry of Finance, Govt of 2. Audit Committee of the Board India, New Delhi. 3. Risk Management Committee of The Audit Committee of the Board Shri Sunil Dutt Bali Officer Employee the Board was reconstituted on 24.05.2012. Director, having vast experience 4. Directors' Committee of the ACB has presently 4 members of in Banking and also known for his Board the Board of Directors, including RBI expertise in personnel matters and and SBI Nominee Directors and two 5. Special Committee to Monitor actively and effectively leading the independent non-executive Directors. Large Value Frauds Shri Bharat Rattan, is the Chairman of officers' community not only in the the Committee w.e.f. 06/06/2011. The SBBJ but also in other banks. 6. Customer Service Committee of the Board members of ACB as on 31.03.2013 Brief Bio-Data of other Non Executive are: 7. Shareholders’/Investors’ Grievance Directors is furnished in Annexure-II. Committee of the Board i) Shri Bharat Rattan- Chairman BOARD MEETINGS 8. Remuneration Committee of the ii) RBI Nominee Director- Member Board During the year 2012-13, 11 meetings iii) SBI Nominee Director- Member 9. Nomination Committee of the of the Board of Directors were held on iv) Shri Rajesh T. Manubarwala- Member 53 GVOTLEF.ZEIEL ;ELGKLI (ii))LLKSI GKU P; D4BE ^LKL VLGFS J[E7EKVL" GVOTLEMO- MGFGS C;MI Z WBET\LL GKJLT7; ET J[LJ FTB GVOTLEF.ZEIEL ;ELGKLIMGFGSEL (iii))LLKSI -7T7 D4BE ^LKL VLGFS LT9 SL" Y#VMFVRLBYID4BEMLFL6 GPGV F GVOTLEMO- F.Z ELT GSFLHI GPºLI GPPKL ETGV F > DI PB MI (iv) +IKLUTL7IFVRDKPLZLMO- WVRFLTOVL'L; J[-SRS EKVT MT JXP; ETJ[LPÉLLVLTBETSHSGE LY LH4B>GUMFTB J[D6ÉLVETML'LMFI\LLEKVL" F.ZEIWBET\LLMGFGSD4BEETERZ J[D6ÉLGVOTLESIVGVOTLEGU6HTB)LLKSI MLBGPGÉLE PB WL6SGKE WBET\LELTB ZT 54 ACB provides directions as also for approval. reviews the following information: oversees the total audit function in the Bank. The major role, functions and UÊ Review, with the Management, (a) Management discussion and powers of the ACB include: - performance of Statutory and analysis of financial condition and Internal Auditors, adequacy of the results of operations. UÊ to oversee the Bank’s financial internal control systems. reporting process and disclosure (b) Statement of significant related of its financial information to UÊ Review the adequacy of party transactions (as defined by ensure that the financial statement inspection and audit function, the Audit Committee), submitted is correct, sufficient and credible. if any, including the structure of by Management. the Internal Audit Department, UÊ to approve any payment to staffing and seniority of the (c) Management letters/letters of Statutory Auditors for any other official heading the Department, internal control weaknesses service rendered by the Statutory reporting structure, coverage and issued by the Statutory Auditors. frequency of internal audit. Auditors. (d) Internal Audit reports relating to UÊ to review, with the Management, UÊ Discuss with Internal Auditors of internal control weaknesses. any significant findings and follow the annual financial statements In fulfillment of the above role, the up thereon. before submission to the Board Audit Committee has the powers to for approval, with particular investigate any activity within its terms reference to: UÊ Review the findings of any internal investigations by the Internal of reference, to seek information from (a) Matters required to be Auditors into matters where there employees and to obtain outside legal included in the Director’s is suspected fraud or irregularity or and professional advise. a failure of internal control systems Responsibility Statement to 6 meetings of ACB were held during of a material nature and reporting be included in the Board’s the year 2012-13, with at least one the matter to the Board. Report. meeting in each quarter {details (b) Changes, if any, in accounting UÊ Discuss with Statutory Auditors furnished in Annexure 1(d)}. policies and practices and before the audit commences, RISK MANAGEMENT COMMITTEE reasons for the same. about the nature and scope OF THE BOARD (RMCB) of audit as well as post-audit (c) Major accounting entries discussion to ascertain any area The RMCB consists of 5 members of involving estimates based on of concern. the Board of Directors viz. Managing the exercise of judgment by Director, SBI Nominee Director and Management. UÊ Look into the reasons for substantial defaults in the payment three Non-Executive Directors (viz. (d) Significant adjustments made to the depositors, debenture Shri Kunal Dalmia, Shri Bharat Rattan in the financial statements holders, shareholders (in case and Shri Rajesh T. Manubarwala). arising out of audit findings. of non-payment of declared The RMCB was last reconstituted dividends) and creditors. on 24.05.2012. RMCB oversees the (e) Compliance with listing and policy and strategy for integrated risk other legal requirements UÊ Review the functioning of the management related to various risk relating to financial Whistle Blower mechanism. exposures of the Bank. 8 meetings statements. of RMCB were held during the year UÊ Focus on follow up of Inter-Branch 2012-13. (f) Disclosure of any related adjustment account, unreconciled party transactions. long outstanding entries in DIRECTORS' COMMITTEE OF THE Inter-Bank and Nostro Account, BOARD (g) Qualifications in the draft arrears in balancing books of audit report. branches, frauds and all major In terms of Govt. of India directives UÊ Review, with the Management, areas of housekeeping. dated 24.10.1990, the Directors’ the quarterly financial statements Committee of the Board is functioning The Audit Committee mandatorily before submission to the Board in the Bank. The Committee consists 55 WL6SGKEJ[DBÉL0 P-'LLJKWVRPºLI; ULTG 56 of the Managing Director (SBBJ), the Shareholders’/ Investors’ Director, RBI Nominee Director and RBI Nominee Director and the Govt. Grievance Committee of the Board two other Directors, viz. (i) Shri Arun Nominee Director. The Committee (SGCB) has been reconstituted on Kumar Saraf and (ii) Shri Bharat Rattan. is required to review the disposal of 06/09/2011 under the Chairmanship One meeting of the Committee was vigilance and other disciplinary action of an independent Director. The held during 2012-13. cases. 4 meetings of the Committee SGCB presently consists of the were held during the year 2012-13. following Directors, viz. Shri Arun K. NOMINATION COMMITTEE OF THE Saraf, Shareholder Director-Chairman, BOARD SPECIAL COMMITTEE TO Managing Director-Member and Shri In terms of RBI's guidelines, a MONITOR LARGE VALUE FRAUDS Kunal Dalmia, Shareholder Director– Nomination Committee of the Board Member. In terms of RBI guidelines, a was constituted to determine ‘fit and Special Committee of Directors The SGCB held 4 meetings (quarterly) proper’ status of the elected Directors. was constituted for monitoring and during 2012-13 to review the position The Committee was reconstituted follow-up of cases of frauds involving of complaints received. During the on 19/07/2011. The Committee amounts of `1 crore and above. The year, 24 complaints were received consists of the following Directors viz. committee was reconstituted on and all were satisfactorily resolved. (i) Shri Bharat Rattan – Chairman, (ii) 24.05.2012. The Special Committee As on 31.03.2013, no complaint was Government Nominee Director, and meets and reviews at least four times pending. No application for transfer (iii) SBI Nominee Director. During the in a year and as and when a fraud of shares was pending for more than year, one meeting of the Committee involving an amount of `1 crore and one month as on 31.03.2013. The was held. above comes to light. The members of Bank is regularly following up with the Committee are Managing Director, the shareholders in the matter of NAME AND DESIGNATION OF SBI Nominee Director, Shri Bharat unclaimed dividends. COMPLIANCE OFFICER (SHARES Rattan, Shri Rajesh T. Manubarwala AND BONDS) and Shri Kunal Dalmia. 4 meetings of REMUNERATION COMMITTEE OF this Committee were held during the THE BOARD Smt Aruna Nitin Dak, Chief Manager year 2012-13. (Share & Bonds) has been designated In terms of Government of India, as the Compliance Officer. CUSTOMER SERVICE COMMITTEE Ministry of Finance, Department of OF THE BOARD Economic Affairs (Banking Division) CHANGES IN ACCOUNTING letter F.No.20/1/2005-BO.I dated TREATMENT The Customer Service Committee of March 9, 2007, the Government has the Board was constituted in terms decided that the whole time Directors The financial statements of the Bank of RBI guidelines. The Committee of Public Sector Banks would be are prepared under the historical was reconstituted on 23/03/2013. entitled to performance linked cost convention. They conform to The present Committee consists of 3 incentives subject to achievement of the Generally Accepted Accounting members viz. Managing Director, Shri broad quantitative parameters under Principles in India, which comprise Rajesh T. Manubarwala and Shri Kunal the Statement of Intent (SoI) entered the statutory provisions, regulatory/ Dalmia (Non-Executive Directors). 4 into with the Government of India. RBI guidelines, accounting standards/ meetings of the Committee were held The evaluation of performance would guidance notes issued by the Institute during the year 2012-13. be done by a Sub-Committee of the of Chartered Accountants of India (ICAI) and the practices prevalent in SHAREHOLDERS’/ INVESTORS’ Board consisting of (i) Government the banking industry in India. Detailed GRIEVANCE COMMITTEE OF THE Nominee Director, (ii) RBI Nominee disclosures as per RBI guidelines/ BOARD Director, and (iii) two other Directors. The Remuneration Committee was accounting standards of ICAI and accounting treatment are given in In terms of Clause 49 of the Listing reconstituted on 24.05.2012 with the Schedule 18 of the Balance Sheet. Agreement with the Stock Exchanges, Directors viz. Government Nominee 57 JGKFLLL3FE FLVELTB ET SHS ZT 58 CORPORATE SOCIAL Model Code of Conduct for its Board 49 as to the composition of the RESPONSIBILITY Members and senior management Board of Directors, composition and functionaries, which has also been quorum of the Audit Committee, Non- As a responsible Corporate Citizen, uploaded on the Bank’s website. The executive directors’ compensation, the Bank continues to undertake declaration for compliance with the the appointment, re-appointment of Community based Social activities Code of Conduct has been taken the statutory Auditors and fixation of such as tree plantation, free medical from the persons concerned and a their fees are not binding on the Bank, camps including blood donation certificate affirming the compliance is as separate provisions in the State camps, establishing of water huts & placed at Annexure-III. Bank of India (Subsidiary Banks) Act water coolers, sports competitions, 1959, General Regulations and the honoring meritorious students etc. The Bank has also framed a code Reserve Bank of India guidelines deal During the year 2012-13 the Bank of conduct for its Directors and with the same. donated `2 crore for relief Measures designated employees for prevention towards Rajasthan Chief Minister's of insider trading in Bank’s securities. CERTIFICATE OF COMPLIANCE Relief Fund and one ambulance each Number of Bank’s shares held by the to Acharya Tulsi Cancer & Research A certificate of compliance of Directors as on 31.03.2013 is given in Centre Bikaner, Sewa Bharti Samiti conditions of Corporate Governance, Annexure 1(e). Udaipur, Navjeevan Sansthan Jodhpur as stipulated in Clause 49(vii) of the & Sri Amar Jain Medical Relief Society OTHER DISCLOSURES Listing Agreement with the Stock Jaipur and one Veterinary ambulance Exchanges has been obtained from to Sri Gopal Goverdhan Goshala The Bank has not entered into any the Auditors and placed at Annexure- Pathmeda were made available. materially significant related party IV. It is confirmed that stipulations of Clause 49 have been complied with. Besides, one water purifier by transactions with its Promoters, Directors, or Management, their every branch of bank to its nearby ANNUAL GENERAL MEETING FOR subsidiaries or relatives, etc. that Government School, financial THE FINANCIAL YEAR 2011-12 assistance to "Rays-Aasha ki ek may have potential conflict with the kiran" working for HIV positive interests of the Bank at large. The important observations in respect children, distribution of Jaipur Foot The Bank has complied with applicable of the matters pertaining to the “Profit & Tricycles to physically challenged and Loss Account and the Balance persons, three delivery vans to the rules and regulations prescribed by Sheet” made by the shareholders ISKCON food relief foundation for stock exchanges, SEBI, RBI or any in the last Annual General Meeting transportation of Mid-day meals to other statutory authority relating to the held on 24.05.2012 and the Bank’s under privileged children studying capital markets during the last three responses are given in Annexure V. in Govt. School, one digital X-Ray years. No penalties or strictures have machine to Mahaveer International been imposed by them on the Bank. DISCLOSURES UNDER BASEL-II Dungarpur providing Medical relief The Bank has complied in all respects to the poor & tribal patients were The Bank has migrated towards with the requirements of Clause 49 made available. Branches of the Bank Basel-II norms w.e.f. March 31, 2008. of the Listing Agreement with the continued to adopt one girl child each In terms of RBI guidelines, the various Stock Exchanges, to the extent that from a poor family with an objective disclosures under Basel-II are given in of providing financial assistance for the requirements of the Clause do Annexure VI. pursuing studies in Government / not violate the provisions of State Municipal schools. Bank of India (Subsidiaries Banks) MEANS OF COMMUNICATION Act, 1959, the Rules and Regulations CODE OF CONDUCT Half-yearly and Quarterly results of made thereunder, and guidelines or the Bank for the year 2012-13 were directives issued by the Reserve Bank In terms of Clause 49 of the Listing published in one English financial daily of India and State Bank of India. Agreement entered into with the Stock (all editions) and one/two Regional Exchanges, the Bank has adopted a Mandatory requirements of Clause Hindi newspapers (all Rajasthan 59 )LLKSI -7T7D4BE^LKLULKIGOLLGVOT;LLTB PBSRZVJ L MTMBDBGÉLSFLFZLTBFTBGO T WG)LLLMVFTBHGKSJHZETSHSGDVL ELWGS¹FLVEKKHTHLTB" Y TGPG)L6VJGKOL;VLTB PBD4BEETJ[3 RºLK ELYUETCZT%7LTGVEFLÉ FMTGDVLJTJK GVOTLE F.Z EL Y#V> ZT 60 editions). The results are also displayed Bank will send notices/documents office hours at the Registered Office on the Bank’s website www.sbbjbank. including Annual Report comprising of the Bank. com. of balance sheet, profit and loss GREEN INITIATIVE account, director's report, auditor's REGISTRATION OF EMAIL report etc. in electronic form to ADDRESS: The Ministry of Corporate Affairs the email address provided by the (M C A), Government of India, has For shares held in physical shareholders and made available to advocated "Green Initiative in Corporate form, shareholders can the Bank by the Depositories. Governance" through its Circular No. register their email address at 17/2011 dated 21.04.2011 read Full text of the documents will also '[email protected]' mentioning with Circular No. 18/2011 dated be made available on the Bank's their name and folio number or write to 29.04.2011 by allowing paperless website www.sbbjbank.com. As the Bank. For shares held in electronic compliances through electronic mode before, physical copies of the notices/ form, Shareholders are requested to for service of documents. In line with documents including Annual Reports, register their email address with their the Government initiative as above, the will be available for inspection during Depository Participant (DP). 61 MLFL6 WBLÉLLGK LTBETGZ MXQVL E WBLÉLLGK LTBEIPLGL;EMLFL6 M)LL -'LLV U JRK -'LZ FHLKLLLJ[SLJWL8G.7LTGK F>)LLKSI GP]L)LPV>ET FFRBLIFLY;>WLT7I METMLFVT>U JRK GOVLBE PBMF LR¹PLK>UXV>>JXPL;À DLU LKFX: WLE. T FLH MDIDIUTELWBLFX: D4BET%M DI MC;MXQELBE WGÉLESF 6 XVSF WGÉLESF 6 XVSF WGÉLESF 6 XVSF WÈ4Z 423.80 380.60 12270.13 11563.23 17664.10 17010.16 FC; 389.75 335.05 11955.47 10386.92 17432.33 15809.71 UXV 388.00 347.00 11926.62 10508.45 17448.48 15748.98 URZLC; 402.00 351.05 12405.76 11547.65 17631.19 16598.48 WY-S 363.00 326.70 12208.36 11428.72 17972.54 17026.97 GMS&DK 384.65 328.10 13241.96 11277.13 18869.94 17250.80 W%7XDK 393.90 367.25 13481.46 12780.23 19137.29 18393.42 VP&DK 421.95 378.35 13965.19 12899.87 19372.70 18255.69 GOM&DK 491.60 406.00 14439.96 13840.40 19612.18 19149.03 UVPKI 501.95 434.95 14865.95 14351.83 20203.66 19508.93 J2KPKI 494.00 410.50 14620.48 13094.05 19966.69 18793.97 FLQ; 445.35 405.00 14040.08 12687.41 19754.66 18568.43 WBLÉLLGK LTBELMBGPSKL FLQ;>ELT WBLÉLLKELTBELPY; ÉLLGKSWBLLTBEIMB< L ERZWBLLTBMTÉLLGKSWBLLTBELÈGSLS J[PASE)LLKSI -7T7D4BE 52549924 75.07 & RQRWZJ2.!7-7WLJ2CG. L XGV7 3643139 5.20 GPºLI MB-'LL B!D4BE 58961 0.08 DIFLE&JGV LB 1462729 2.09 GPOTLIMB-'LLYSGVPTLE 1980201 2.83 ELKJLTKT7DL8.IU 1397061 2.00 EZ-PLGF3P 8772321 12.53 WGVPLMI)LLKSI 129414 0.18 7-7 PBJ2LN.TL6M 6250 0.01 ERZ J L0 PHLKETGZ JSL FR< J[D6ÉLE LT M; .DL8._M FMI MGZGF7T. -7T7D4BEWL8J2DIELVTK .U JRK XGV7-7T7D4BEWL8J2DIELVTK .U JRK J[ÉLLVEL L;Z >GSZEFLY;> J2>J['LFSZ MI-EIF>U JRK KLU-'LLV WLT 62 INFORMATION FOR GENERAL SHAREHOLDERS a) Annual General Meeting Place Jaipur Venue Maharana Pratap Auditorium, Bhartiya Vidya Bhawan, K.M. Munshi Marg, Opp. O.T.S., Jaipur Date & Time Friday, 7th June, 2013, 11.30 A.M. b) Financial Year 01.04.2012 to 31.03.2013 c) Date of Book Closure/ Record Date Record Date for Interim Dividend: 29.03.2013 Book Closure for AGM: 31st May, 2013 to 6th June, 2013 d) Dividend Payment Date Interim Dividend :- 08.04.2013 e) Listing on Stock Exchanges BSE & NSE, Mumbai and JSE, Jaipur f) Stock Code 501061 (BSE), 231 (Jaipur Stock Exchange) & SBBJ (NSE) g) Share Transfer Agent M/s. MCS Limited F 65, 1st Floor, Okhla Industrial Area, Phase I, New Delhi- 110020 h) Share Transfer System Through Share Transfer Agent. Transfer/Transmission of shares approved by the Bank’s “In-house Share Transfer Committee”. i) Dematerialisation of Shares The Shares of the Bank have been dematerialized. The ISIN No. allotted by NSDL/ And liquidity CDSL is INE 648A01026. As on 31.03.2013, 95.09% shares of the bank have been dematerialized. j) Details of outstanding GDRs/ ADRs/ warrants or any NIL convertible instruments, conversion date and likely impact on equity. k) Unclaimed Dividend The shareholders who have not encased their dividend warrants or have not received dividend of previous years, are requested to contact Shares & Bonds Department at Head Office, Jaipur for issue of duplicate dividend warrants. MARKET PRICE DATA MONTHS SBBJ’s Share Price BSE BANKEX BSE SENSEX HIGH LOW HIGH LOW HIGH LOW April 2012 423.80 380.60 12270.13 11563.23 17664.10 17010.16 May 2012 389.75 335.05 11955.47 10386.92 17432.33 15809.71 June 2012 388.00 347.00 11926.62 10508.45 17448.48 15748.98 July 2012 402.00 351.05 12405.76 11547.65 17631.19 16598.48 August 2012 363.00 326.70 12208.36 11428.72 17972.54 17026.97 September 2012 384.65 328.10 13241.96 11277.13 18869.94 17250.80 October 2012 393.90 367.25 13481.46 12780.23 19137.29 18393.42 November 2012 421.95 378.35 13965.19 12899.87 19372.70 18255.69 December 2012 491.60 406.00 14439.96 13840.40 19612.18 19149.03 January 2013 501.95 434.95 14865.95 14351.83 20203.66 19508.93 February 2013 494.00 410.50 14620.48 13094.05 19966.69 18793.97 March 2013 445.35 405.00 14040.08 12687.41 19754.66 18568.43 DISTRIBUTION OF SHAREHOLDINGS (AS ON 31ST MARCH, 2013) No. of shares held % of shares held to Total SHAREHOLDERS’ CATEGORY No. of shares Promoter : State Bank of India 52549924 75.07 Mutual Funds /UTI 3643139 5.20 Financial Institutions /Banks 58961 0.08 Insurance Companies 1462729 2.09 Foreign Institutional Investors 1980201 2.83 Bodies Corporate 1397061 2.00 Individuals 8772321 12.53 Non Resident Indians 129414 0.18 Trust & Foundations 6250 0.01 Total 70000000 100.00 MCS Limited Address for correspondence : Chief Manager (Shares & Bonds) Unit: SBBJ State Bank of Bikaner and Jaipur F-65, 1st Floor, Head Office, Tilak Marg, Okhla Industrial Area, Phase- I, “C” Scheme, New Delhi- 110020 JAIPUR - 302 005 Phone: 011- 41406149 Phone : 0141- 5101539 Fax: 011-41406148 Fax : 0141-5101176 Email: [email protected] E-mail : [email protected] 63 WVRZ9VE I E PL;FTBWL LTGUSGVOTLEF.ZEID4#ELTBFTBGVOTLELTBEINJG-'LGSELGPPKL ¹MB GVOTLEELVLF NVETEL ;ELZ D4#ETBGUVFTB % LPLGL;E W6 GVOTLEF.Z!F.Z ETOL4KLVHRC; NJG-'LSHR MLÉLLKLM)LLFTB MGFGS LTBEIMB< L>GUVFTB T D4#ETB NJG-'LS'LT GVOTLE!MO- !WÉ \LH4 WÉ \L!GVOTLE +IÈSIJQL4ÉLKI N MGFGSMO- !MGFGSWÉ \L +IGLPERFLK WÉ \L!GVOTLEZL N SE MGFGSMO- !MGFGSWÉ \LZL +IDI+IKLF WÉ \L!GVOTLELX6 W MTÈ)LLPI MGFGSMO- !MGFGSWÉ \LLX6 +IFSIFLG:PELGM6HL WÉ \L!GVOTLELX6 W MTÈ)LLPI MGFGSMO- !MGFGSWÉ \LLX6 +IKLUIP VFTHKL WÉ \L!GVOTLE ZL MTÈ)LLPI MGFGSMO- !MGFGSWÉ \LLX6 +IJ[OIJERFLKML6 LZ WÉ \L!GVOTLE ZL MTJ[)LLPI MGFGSMO- !MGFGSWÉ \LLX6 +I ETOTP WÉ \L!GVOTLEZL N SE MGFGSMO- !MGFGSWÉ \LZL +IDIKFTLDLDX WÉ \L!GVOTLEZL ZL SE MGFGSMO- !MGFGSWÉ \LZL WÉ \L!GVOTLE +IERVLZ.LZGF L N MGFGSMO- !MGFGSWÉ \LLX6 +IWFKIEGMBH WÉ \L!GVOTLELX6 N SE MGFGSMO- !MGFGSWÉ \LLX6 +IGFGHKERFLK WÉ \L!GVOTLELX6 ZL MTJ[)LLPI MGFGSMO- !MGFGSWÉ \LLX6 +IKLUT6O[ERFLKLLH WÉ \L!GVOTLELX6 N SE MGFGSMO- !MGFGSWÉ \LLX6 +IMRVIZOºLDLZI WÉ \L!GVOTLELX6 ZL MTJ[)LLPI MGFGSMO- !MGFGSWÉ \LLX6 WÉ \L!GVOTLELX6 +I.IETU4V N MGFGSMO- !MGFGSWÉ \LLX6 +IKLUTL7IFVRDKPLZL WÉ \L!GVOTLELX6 N MTÈ)LLPI MGFGSMO- !MGFGSWÉ \LLX6 +I)LLKSKSV WÉ \L!GVOTLELX6 N MTÈ)LLPI MGFGSMO- !MGFGSWÉ \LLX6 +IWLETMKLJ2 WÉ \L!GVOTLE W MTÈ)LLPI MGFGSMO- !MGFGSWÉ \LLX6 +IMBUIPLFL; WÉ \L!GVOTLEZL ZL SE MGFGSMO- !MGFGSWÉ \LZL +I LFZWLQL ; WÉ \L!GVOTLEZL N SE MGFGSMO- !MGFGSWÉ \LZL NNJG-'LS WWVRJG-'LS ZLZLYXVHIB 64 ANNEXURE- I(a) DETAILS OF ATTENDANCE OF DIRECTORS AT THE MEETINGS OF BOARD OF DIRECTORS DURING 2012-13 Meetings held Meetings Whether No. of other BODs / Board Committees he/ S.No. Name of Director during his / Attended attended AGM she is a member Director/ Chairperson her tenure Shri Pratip Chaudhuri Chairman/Director- 19 1 11 4 P Committee member/ Committee Chairman-14 Shri Shiva Kumar Chairman/Director- N.A. 2 10 10 P (Upto 28.02.2013) Committee member/ Committee Chairman-N.A. Shri B. Sriram Chairman/Director- Nil 3 1 1 N (w.e..f. 01.03.2013) Committee member/ Committee Chairman-Nil Smt Malvika Sinha Chairman/Director- Nil 4 6 3 N (w.e.f.22.08.2012) Committee member/ Committee Chairman-Nil Shri Rajeev N.Mehra Chairman/Director- 4 5 4 2 NA (w.e.f. 01.12.2012) Committee member/ Committee Chairman-Nil Shri Pradip Kumar Sanyal Chairman/Director-1 6 8 6 NA (w.e.f. 13.06.2012) Committee member/ Committee Chairman-Nil Shri A.K. Deb Chairman/Director-N.A. 7 7 5 P (Upto 30.11.2012) Committee member/ Committee Chairman-N.A. Shri B. Ramesh Babu Chairman/Director- N.A. 8 3 2 NA (Upto 22.05.2012) Committee member/ Committee Chairman-N.A. Chairman/Director- 11 9 Shri Kunal Dalmia 11 2 P Committee member/ Committee Chairman-Nil Shri Amrik Singh Chairman/Director- Nil 10 7 5 P (Upto 11.12.2012) Committee member/ Committee Chairman Nil Shri Mihir Kumar Chairman/Director- Nil 11 4 3 NA (w.e.f. 12.12.2012) Committee member/ Committee Chairman-Nil Shri Rajendra Kumar Shah Chairman/Director- Nil 12 6 6 P (Upto 31.10.2012) Committee member/ Committee Chairman Nil Shri Sunil Dutt Bali Chairman/Director- Nil 13 (w.e.f. 01.11.2012) 5 5 NA Committee member/ Committee Chairman Nil Chairman/Director- Nil 14 Shri D. K. Jain 11 10 P Committee member/ Committee Chairman Nil Shri Rajesh T. Manubarwala Chairman/Director- Nil 15 11 10 P (w.e.f. 20.04.2011) Committee member/ Committee Chairman Nil Shri Bharat Rattan Chairman/Director- Nil 16 11 11 P (w.e.f. 15.05.2011) Committee member/ Committee Chairman Nil Shri Arun K. Saraf Chairman/Director- 15 17 11 6 N (w.e.f. 12.08.2011) Committee member/ Committee Chairman-Nil Shri Sanjeev Sharma Chairman/Director-N.A. 18 1 1 NA (Upto 14.05.2012) Committee member/ Committee Chairman-N.A. Shri Shyamal Acharya Chairman/Director-N.A. 19 7 3 P (up to 29.11.2012) Committee member/ Committee Chairman-N.A. P -Attended N - Not attended N.A. - Not applicable 65 WVRZ9VE I 66 ANNEXURE – I (b) LIST OF BOARD OF DIRECTORS AS ON 31.03.2013 S. Name of Designation Appointed Address No. of Committees No. Director since of which he/ she is a Member/Chairperson 1 Shri Pratip Chairman 07.04.2011 Chairman Chairman- Nil Chaudhuri State Bank of India, Corporate Centre Committee Member-Nil Madame Cama Road, Mumbai-400021 2 Shri B. Sriram Managing 01.03.2013 Managing Director Chairman- 5 Director State Bank of Bikaner and Jaipur Committee Member-1 Head Office, Tilak Marg Jaipur - 302 005 3 Smt Malvika Sinha RBI Nominee 22.08.2012 Chief General Manager, Chairman- Nil Director Deptt of Non-Banking Supervision, Committee Member-3 Issue Deptt and Foreign Exchange Deptt, Reserve Bank of India, New Delhi 4 Shri Rajeev N. SBI Nominee 01.12.2012 Chief General Manager (A & S Group) Chairman- Nil Mehra Director State Bank of India, Corporate Committee Member-5 Centre, Mumbai–400 021 5 Shri Pradip SBI Nominee 13.06.2012 Dy. General Manager (A&S) Chairman-Nil Kumar Sanyal Director Associate Banks Department Committee Member-5* State Bank of India Corporate Centre, Mumbai-400021 6 Shri Rajesh T. Director 20.04.2011 2615/9 A, Near Hotel Laxmi, Chairman- 1 Manubarwala GIDC Asian Paint Char Rasta, Committee Member-4 Ankleshwar-393002 7 Shri Bharat Director 15.05.2011 B. Rattan & Associates, Chairman-2 Rattan, Shop No. 408-409, Committee Member-4 Mahak Tower, Kailash Cinema Road, Civil Lines Ludhiana-141001 8 Shri Arun K Saraf Shareholder's 12.08.2011 Managing Director,, Chairman-1 elected director Juniper Hotels Pvt Ltd., Grand Hyatt Committee Member-2 Mumbai, Santacruz, MUMBAI-400005 9 Shri Kunal Dalmia, Shareholder's 12.08.2010 Lindsay Tower, 9th Floor, Chairman- Nil elected director 13, Nelisen Gupta Sarnee, Committee Member-4 Kolkata-700087 10 Shri Mihir Kumar Central 12.12.2012 Director, Govt. of India, Ministry of Chairman- Nil Government Finance, Deptt. of Financial Services Committee Member-3* Nominee Director (Banking Division), 3rd Floor, Jeevan Deep Bldg., Parliament Street, New Delhi.-110001 11 Shri Sunil Dutt Bali Officer Employee 01.11.2012 Muskan, Sector IV, Chairman- Nil Director Vidyadhar Nagar, Jaipur Committee Member-Nil 12 Shri D.K. Jain, Workmen 12.01.2011 S. W. O. State Bank of Bikaner & Chairman- Nil Employee Jaipur, Z. O., Patel circle, Committee Member-Nil Director Udaipur-313001 * Shri Rajeev N. Mehra and Shri Pradip Kumar Sanyal are nominated on the Audit Committee of the Board in their respective capacities. 67 WVRZ9VE I Y PL;FTBWL LTGUSEL ;ELGKLIMGFGSEID4#ELTBFTBNJG-'LGS ¹MB GVOTLEELVLF NVETEL ;ELZETOL4KLV D4#ETBGUVFTBNJG-'LSHR HRC;D4#ETB ÈD6ÉLGVOTLE +IGLPERFLK 14 13 +IDI+IKLF 2 2 )LLKSI -7T7D4BE^LKLVLGFS +I ETOTD 10 3 +IDIKFTLDLDX 2 1 +IJ[OIJERFLKML6 LZ 13 9 +IMBUIPLFL; 2 1 +I ETOTP 12 3 +I.IETU4V 16 9* +IKLUT6O[ERFLKLLH 9 1* +IKLUTL7IFVRDKPLZL 4 4 12 5* +I)LLKSKSV 4 2* 12 8 +IMRVIZOºLDLZI 7 7* *MGFGSETY4KMO- ETJFTBD4#EFTBNJG-'LS WVRZ9VE I L PL;FTBWL LTGUSFB.ZEIWBET\LLMGFGSEID4#ELTBFTBNJG-'LS ¹MB GVOTLEELVLF NVETEL ;ELZETOL4KLV D4#ETBGUVFTBNJG-'LS HRC;D4#ETB HR +I)LLKSKSV Y4KEL ;JLZEGVOTLE>WÉ \L )LLKSI GKU P;D4BE^LKLVLGFS +IKLUTLPFL; +IFSIFLG:PELGM6HL )LLKSI -7T7D4BE^LKLVLGFS +IKLUIP VFTHKL +IJ[OIJERFLKML6 LZ +I ETOTP +IDIKFTLDLDX +IEL4LZGELLTK +IKLUTL7IFVRDKPLZL Y4KEL ;JLZEGVOTLE +IWFKIEGMBH ETBO[MKELK^LKLVLGFS GPLTLWLFBG LSETJFTBD4T#EFTBNJG-'LS 68 ANNEXURE - I(c) ATTENDENCE OF EC MEETINGS DURING 2012-13 S.No. NAME OF DIRECTOR MEETINGS HELD DURING HIS/ MEETINGS HER TENURE ATTENDED 1. Managing Director Shri Shiva Kumar 14 13 Shri B. Sriram 2 2 2. SBI Nominee Shri A.K. Deb 10 3 Shri B. Ramesh Babu 2 1 Shri Pradip Kumar Sanyal 13 9 3. Shri Sanjeev Sharma 2 1 4. Shri A.K. Deb 12 3 5. Shri D. K. Jain 16 9* 6. Shri Rajendra Kumar Shah 9 1* 7. Shri Rajesh T. Manubarwala 4 4 12 5* 8. Shri Bharat Rattan 4 2* 12 8 9. Shri Sunil Dutt Bali 7 7* * Meeting attended as non member of the Committee. ANNEXURE - I(d) ATTENDENCE OF ACB MEETINGS DURING 2012-13 S.NO NAME OF DIRECTOR MEETINGS HELD DURING HIS/ MEETINGS HER TENURE ATTENDED 1. Shri Bharat Rattan 6 6 (Non Executive Director, Chairman) 2. RBI Nominee Shri Rajesh Verma 2 0 Smt. Malvika Sinha 4 1 3. SBI Nominee 6 Shri Rajeev N Mehra 0 Shri Pradip Kumar Sanyal 4 Shri A.K. Deb 0 Shri B. Ramesh Babu 1 Shri Kaushal Kishore 1 4. Shri Rajesh T. Manubarwala 5 5 Non Executive Director 5. Shri Amrik Singh 1 1 (C. Govt. Nominee Director) Meeting attended as special invitee. 69 WVRZ9VE I . GVOTLELTBETJLMWBLLTBEIMB< L ELT ¹MB GVOTLEELVLF GVOTLELTBELTJLMWBLLTBEIMB< L +IÈSIJQL4ÉLKI LX6 +IDI+IKLF LX6 +IFSIFLG:PELGM6HL LX6 +IKLUIP VFTHKL LX6 +IJ[OIJERFLKML6 LZ LX6 +IKLUTL7IFVRDKPLZL LX6 +I)LLKSKSV LX6 +IWLETMKLJ2 100 +IERVLZ.LZGF L 1901 +IGFGHKERFLK LX6 +IMRVIZOºLDLZI 225 +I.IETU4V LX6 70 ANNEXURE -I(e) NUMBER OF SHARES HELD BY THE DIRECTORS (AS ON 31.03.2013) No. Name of Director No. of Shares held by the Director 1 Shri Pratip Chaudhuri Nil 2 Shri B. Sriram Nil 3 Smt Malvika Sinha Nil 4 Shri Rajeev N Mehra Nil 5 Shri Pradip Kumar Sanyal Nil 6 Shri Rajesh T. Manubarwala Nil 7 Shri Bharat Rattan, Nil 8 Shri Arun K Saraf 100 9 Shri Kunal Dalmia, 1901 10 Shri Mihir Kumar Nil 11 Shri Sunil Dutt Bali 225 12 Shri D.K. Jain, Nil 71 WVRZ9VE II W6 Y4KEL L;JLZEGVOTLELTBELMBG\L*SJGKQ +IKLUTL7IFVRDKPLZL DLKELNBGMZEIMO- SLJ[L*SJTLTMT EEKMZLHELKH4BC6HBTWJVTJTLTFTBPL;EL WVR)LPH4"PTMB-ELK^IJ-EXZ>UIWLC;.IMI>WBEZTPKFTB6 LMI)LIH4" +I)LLKSKSV JTLTMT EMVOIZT WVRZ9VE III WLQLKMBGHSLEIWVRJLZVM&D6ÉLI LLTLLL F4BGPºLI PL;ETGZ D4BEWLQLKMBGHSLEIM)LIF.ZMO- LTB PBPGK#ÈD6ÉLV^LKLWVRJLZVLEI WG)LJRG7MRGVGQSEKSLHX" GO:ZI DI+IKLF ÈD6ÉLGVOTLE 72 ANNEXURE – II BRIEF RESUME OF OTHER NON-EXECUTIVE DIRECTORS Shri Rajesh T. Manubarwala, is a Tax consultant by profession and also having Bar Council membership. He is having 35 years experience in his profession. He is also trustee in Sanskardeep School, GIDC, Ankleshwar Shri Bharat Rattan, is a Chartered Accountant by profession having experience of 17 years. He has been engaged with various types of audit (Concurrent audit, Special Audit, Statutory Audit) of various banks, Govt Deptt, Insurance Companies. He is also having license of Insurance Surveyor. Shri Arun Kumar Saraf, is well known businessman and Director on the Boards of various companies engaged in hotel business. He is having rich experience of development of new hotels, mobilizing funds for the projects, inking various land-purchase agreements. Shri Kunal Dalmia, is renowned industrialist and director on the Board of various companies engaged in manufacturing refractory products, pulp and paper, Export of Engineering products, Real Estate etc. He is President of Arcelor Mittal Refractories, Poland. He is also associated with various chambers of Commerce and Industries Organisations. Shri D. K. Jain, is workman director and single window operator, SBBJ and working at Zonal Office, Udaipur. ANNEXURE – III DECLARATION OF COMPLIANCE WITH THE CODE OF CONDUCT I confirm that all Board Members and Senior Management have affirmed Compliance with the Bank's Code of Conduct for the financial year 2012-13. Delhi B. Sriram 06.05.2013 Managing Director 73 WVRZ9VE IV MB-'LLYSWG)LLLMVETM&D6ÉLFTBZT PL-ST M.LYL .EB PL-ST WY[PLZWGVZ .EB PL-STT FETWY[PLZ MVOIZT PL-ST QSRPT;OI .EB PL-ST WLTDTKL MXO .EJXK PL-ST JI M.I . MLTGM 7_M MVOIZT GO:ZI FC;> 74 ANNEXURE IV AUDITORS’ CERTIFICATE ON CORPORATE GOVERNANCE TO THE MEMBERS OF State Bank of Bikaner and Jaipur We have examined the compliance of conditions of corporate governance by the State Bank of Bikaner and Jaipur, for the year ended on the 31 st March, 2013 as stipulated in Clause 49 of the Listing Agreement of the State Bank of Bikaner and Jaipur with Stock Exchanges. The compliance of conditions of Corporate Governance is the responsibility of the management. Our examination was limited to procedures and implementation thereof, adopted by the State Bank of Bikaner and Jaipur for ensuring the compliance of the conditions of the Corporate Governance. It is neither an audit nor an expression of opinion on the financial statements of the State Bank of Bikaner and Jaipur. In our opinion and to the best of our information and according to the explanation given to us, we certify that the State Bank of Bikaner and Jaipur has complied with the conditions of Corporate Governance as stipulated in the above mentioned Listing Agreement. We state that no investor grievance is pending for a period exceeding one month against the State Bank of Bikaner and Jaipur as per the records maintained by the Shareholders’/Investors Grievance Committee. We further state that such compliance is neither an assurance as to the future viability of the State Bank of Bikaner & Jaipur nor the efficiency or effectiveness with which the management has conducted the affairs of State Bank of Bikaner & Jaipur. For S. DAGA & CO. For AGARWAL ANIL & Co. For M.K AGGARWAL & CO. Chartered Accountants Chartered Accountants Chartered Accountants (CA SHANTI LAL DAGA) (CA ANIL AGRAWAL) (CA ATUL AGGARWAL) (M.No. F-11617) (M.No. 82103) (M.No. 99374) PARTNER PARTNER PARTNER Firm Reg. No. 000669 S Firm Reg. No. 003222 N Firm Reg. No. 01411 N For CHATURVEDI & CO. For UBEROI SOOD & KAPOOR For P S D & ASSOCIATES Chartered Accountants Chartered Accountants Chartered Accountants (CA SATISH CHANDRA CHATURVEDI) (CA SANJAY SOOD) (CA PRAKASH SHARMA) (M. No.12705) (M. No.80527) (M. No. 072332) PARTNER PARTNER PARTNER Firm Reg. No. 302137 E Firm Reg. No. 001462 N Firm Reg. No. 004501 C Delhi 06 th MAY 2013 75 WVRZ9VE V FC;>ELTMBJ6V>GPYSPLGL;EMLÉLLKLM)LLFTBWBLÉLLKELTB^LKLZL)LHLGV ¹MB WG)LFS È3 RºLK VJI GVPZ VJI ELGVPZWGY[FLTBETJ[GSWVRJLSFTB FLQ; BPFLQ;ETGVPZWGY[F PBGVPZ SIP[PAGULTGE% MTD EKWD% H4W'LL;S_PS;FLV VJI EIG-'LGSCMJ[ELKH4 VI ELORYVL"G-'LGSDHRSGVKLLLUVEH4"EAJ L-J7EKTB EKLT. FTB J[GSLSPAG JA# % GVPZWGY[F GVPZ VJI GVPZ VJIMEL GVPZWGY[FLTBMTWVRJLS ELT GVPZ WGY[FLTB FTB EI SRZVL FTB J[GSLSEIPAGHRC;"CMIWPGÉLFTB>P4GPEFBOIETELKL PLGLG5 E\LT LFTBER/D. T 76 ANNEXURE-V SHAREHOLDER’S QUERIES WITH REGARD TO PROFIT & LOSS ACCOUNT AND BALANCE SHEET RAISED IN THE LAST ANNUAL GENERAL MEETING HELD ON MAY 24, 2012 AND THEIR RESPONSES: OBSERVATIONS REPLIES 1 NPA : Steep growth in Net NPA to Net advances Position of Net Advances and Net NPA as on 31st March, which was 0.83% is increased now to 1.93% 2012 vis-à-vis 2011 are as under: i.e. double the existing NPA. The position is very Rs. in Crore 2012 2011 % increase much disappointing. Kindly explain (page 155) Net Advances : 49244.33 41206.65 19.51% Net NPA : 945.41 341.33 176.98% Net NPA to Net 1.92% 0.83% Advances: The growth in Net advances for the year ended 31.03.12 was 19.51% over 31.03.2011. During the same period, the Net NPA increased by 176.98% on account of addition of some large value accounts in commercial segment (owing to global recession) and other value accounts in AGR Segment. Resultantly, the Net NPA% increased from 0.83% as on 31.03.2011 to 1.92% as on 31.03.2012 2 In the NPA details provided in the Annual Report, The matter relates to client confidentiality. Disclosing the names names of top 5 NPA should also be published. of big NPA accounts could be detrimental to the interest of the borrower in improving their financial position. 3 The Rate of Dividend for this year decreased from In view of implementation of BASEL-III, Banks are required 164% last year to 145% even after highest profit to maintain higher CRAR to comply with the international of `652 crores as well as Golden Jubilee year standards. Therefore the Board of Directors decided to of the Bank. This is unfair with the shareholders conserve capital keeping in view the future business prospects and needs to be revised. of the bank. The money which is transferred to reserves will improve the Return on Equity. 4 Page 177 : AS 20 : Earning Per share : Cause of Less earning per share is due to increase in number of 2 crore less Earning per share fully paid equity shares on account of rights issue during the year. 5 Why Contingent liability increased during the Contingent Liabilities increased due to increase in forward year by `3398 crores. Please explain the exchange contracts booked by the Bank on behalf of reason customers (`2400 crore). In the interest of customers we have to book forward exchange contract on the present rates. Increase in contingent liability due to forward exchange contracts is a good sign showing that the Bank is doing well in forex business. 6 Schedule No.9 - Unsecured Advances : The total provision for Bad & Doubtful debts of `431.43 crore Unsecured advances are on high side recording includes provision for unsecured advances also as per RBI a growth of 15.50% from `5890 crore to `6972 Guidelines. crores this year. Are they fully provided for ? 7 Please confirm that the actuaries for pension Bank gets actuarial valuations done every year. Bank charged and gratuity is done every year. How much to its Profit and Loss account `179.25 crores and `36.87 crore provision has been made for actuaries during towards pension and gratuity liability respectively (including the year ended 31.3.2012. This should not the amortised amount of `76.89 crore) for the financial year include the share of amortization 2011-12. 77 WVRZ9VE - VI DLMTZ II ÈE7IEKL )LLKSI GK5 LP;D4BEETV TJXBUIJ L;*SSL»TFPE;ETGOLLGVOT;LLTBETWBSY;S>D4BEETGJZKIII DLMTZ II ÈE7IEKLGOVLBEELT GV&VLVRMLKH4 JXUIÈD6V JXUIÈD6VELNÎT HMRGVGQSEKVLH4GED4BE^LKLGVL;GKS0 PML 0 XHKQVLEL L;6P VETGZ TD4BEETJLMJ L;*SJXUINJZ$ÉLH4WL4K GPJKISGPJLVG-'LGS LTB PBDLHKIELKELTBETELKLN3J6VWÈ3 LGLSMBE7LTBMTJLKJLVTETGZ D4BEETJLMJ L;*SPR2LV)LINJZ$H4" ETGPGV LFE6 XVSF-SKETGPN1QJXUIJ L;*SSLWVRJLSELTDVL TK 78 ANNEXURE VI BASEL-II DISCLOSURES In terms of Reserve Bank of India guidelines on New Capital Adequacy Framework (NCAF), Pillar-III Disclosures of the Bank as on 31.03.2013 are as under: Capital Management Capital management is aimed at ensuring that there is sufficient capital to meet the requirement of the Bank as determined by its underlying business strategy and also that sufficient cushion is available to absorb unexpected shocks that could arise out of adverse market conditions and external factors. The Bank aims to maintain Capital Adequacy Ratio (CAR) well above the regulatory minimum level of 9%. Excess capital above the regulatory minimum is for supporting anticipated future business growth and to serve as a buffer for any unexpected shocks thereby ensuring that the Bank’s CAR does not fall below the regulatory minimum level even in adverse conditions. Risk Management The risk management processes and practices employed by the Bank have been developed in the wider context of the relationships between risk, capital and earnings. The strategic objectives set by the Board determine the Bank’s risk appetite, which is an important input for its capital planning and performance management. Risk appetite is the maximum risk the Bank is willing to accept in executing its business strategy while staying protected against events that may have an adverse impact on its profitability and capital base. Risks are being managed by using limits or checkpoints set across all dimensions of capital, earnings volatility and concentration risk. These limits are determined by a well-defined maximum risk appetite. By adopting an integrated risk management approach, the Bank seeks to improve its methods for identifying and quantifying risks, to develop a more effective risk management system, to achieve a stable balance between earnings and risk, to eliminate concentrations of specific risks, to create an appropriate capital structure, to achieve optimal allocation of resources, and to sustain high asset quality. This contributes to the strengthening of the financial health of the Bank and maximizing of shareholders’ value. The Bank broadly classifies and defines risk types as under: Credit Risk The risk of financial loss in credit assets (including off-balance sheet instruments) caused by deterioration in the credit conditions of counterparties. Market Risk The risk of financial loss where the value of assets and liabilities could be adversely affected by changes in market variables such as interest rates, securities prices and foreign exchange rates. Liquidity Risk The risk to earnings and capital arising from a bank’s potential inability to meet its liabilities when they become due without incurring unacceptable losses. Operational Risk The risk of loss resulting from inadequate or failed internal processes, people or systems, or from external events. Interest Rate Risk in Banking Book The risk that the value of bank’s financial assets may decrease and/or the value of the bank’s liabilities may increase because of changes in interest rates. Interest Rate Risk arises primarily from the maturity mismatch of assets and liabilities. The overall objective is to manage current and future earnings sensitivity to interest rate risk exposure. The Bank has the following risk management committees in place for its overall risk management: Risk Management Committee of the Board, Credit Risk Management Committee, Market Risk Management Committee and Operational Risk Management Committee. Besides these committees, the Bank’s Assets-Liabilities Management Committee (ALCO) and Balance Sheet Management Group monitor the build-up of assets and liabilities across maturities for liquidity tracking and assessing rate sensitivity on an ongoing basis. The various risk management committees discuss and dynamically manage the different types of risks both from qualitative and quantitative perspectives. The Board of Directors lays down the Bank’s risk management policies for various types of risk based on the discussions held by these committees. In terms of RBI guidelines on Basel-II framework, the Bank has adopted the Standardised Approach for Credit Risk, Standardised Duration Approach for Market Risk and Basic Indicator Approach for Operational Risk. In addition to regulatory capital requirement of computation as per Pillar-I, the Bank also assesses Liquidity Risk and Interest Rate Risk and carries out strests tests on a regular basis to asses adequacy of the capital available as a cushion to withstand shocks from market forces and external factors. 79 )LLKSI GKuLP;D4BEETGOLLGVO;TLLTB PBHFLKIÈE7IEKLVIGSETM6O)L;FTBYRLL3FE PBJGKFLLL3FEÈE7IEKL>ÈE7IEKLMLKLI DF MTFTBMBZ9VH4" ÈE7IEKLMLKLIZLYX\LT L DLMTZII LQL>D4BEFTB EZ-SKJKZLYXH4"CMEIELTC;WVRLBYIVHIBH4"S'LLGJ> FUIDIY[LFILD4BE>JLZI GUMFTBD4BEEL LT KH4 FTBGVPTLELT-SKI I PB-SKI II JXUIFTBMTÈ3 TEFTBEIE7L4SIEIYC;H4" ÈE7IEKLMLKLIJXUI LQL YRLL3FEÈE7IEKL W MLKLBL JXUIELÈELK GPLTLSL CG%P7I -SKI I ULKIWBL )LLKSI -7T7D4BE JG$ZE VPLT6FTLIGPZT 80 Qualitative and quantitative disclosures in terms of RBI guidelines and our Disclosure Policy are appended in the Disclosure Tables (DF) 1 to 10. DF-1 SCOPE OF APPLICATION Basel-II framework is applicable to the Bank at solo level. It has no subsidiary. However, investment in MGB Gramin Bank, Pali (in which Bank has 35% equity stake) has been deducted from Tier-I and Tier-II capital -50% each. DF-2 : CAPITAL STRUCTURE: Qualitative Disclosures: (a) Summary: Type of Capital Features Equity (Tier-I) Shares issued to SBI (75.07%) Public (24.93%) Innovative Instruments (Tier-I) Innovative Perpetual Debt Bonds: Unsecured, non-convertible, subordinated, perpetual Bonds in the nature of Promissory Notes. Call option and step-up coupon available after 10 years (subject to RBI approval at the time). Tier-II Subordinated Debt Instruments i.e. Upper Tier-II and Lower Tier-II bonds issued by the Bank are unsecured, redeemable, non-convertible bonds. Call option available for Upper Tier-II bonds after 10 years (subject to RBI approval at the time) Period : ranges from 111 months to 180 months Details of Tier-I and Tier-II debt issues given in Appendix I. Quantitative Disclosures: (` in Crores) (b) Tier-I Capital (i + ii + iii + iv – v) : 4932.57 (i) Paid-up Share Capital : 70.00 (ii) Reserves : 4694.13 (iii) Innovative Instruments : 200.00 (iv) Other Capital Instruments : 0.00 (v) Amount deducted from Tier-I Capital : (31.56) (i.e. Deferred Tax Asset & Investment in RRB) (c) Total Eligible Tier -2 Capital (Net of deductions) : 1648.92 (i+ii+iii-iv) (i) Debt Capital Instruments eligible for inclusion in Upper Tier-2 Capital: : l Total amount outstanding : 450.00 l Of which raised during Current year : 0.00 l Amount eligible for being reckoned as Capital : 450.00 (ii) Subordinated Debt eligible for inclusion in Lower Tier-2 Capital: : l Total amount outstanding : 1500.00 l Of which amount raised during current year : 0.00 l Amount eligible for being reckoned as Capital : 900.00 (iii) General Provision and Loss Reserves : 317.53 (iv) Deduction from Tier- 2 Capital, if any : (18.61) (d) Total Tier-III capital, if any : 0.00 (e) Total Eligible Capital (net of deductions from Tier I & Tier II Capital) : 6581.49 [Total of (b), (c), (d)] 81 ÈE7IEKLMLKLIJXUIJ L;*SSL YRLL3FEÈE7IEKL l D4BEEIWLCELJ ICAAP EIVIGSDLT.;MTWVRFLTGOSH4" l QLZX0 PML -SK PBWVRFLGVS)LLPI0 PML ETGZ JXUIEIWLP ESLELGVL;KLWLCELJ^LKLGE LY LH4" l JXUIJ L;*SSLWVRJLSDLMTZ I PBDLMTZ II ETGOLLGVO;TLLTBETWVRMLKGVELZLY LH4"JXUIJ L;*SSLELWLEZVGPGV LFE 6 XVSFET-SKET¦JKWLELY LH4" JGKFLLL3FEÈE7IEKL `EKLT. FTB (W) ML 82 DF-3 : CAPITAL ADEQUACY Qualitative Disclosures: UÊ Bank has a Board-approved ICAAP(Internal Capital Adequacy Assessment Process) Policy UÊ Capital requirement for current business levels and estimated future business has been assessed as per ICAAP UÊ CAR (Capital Adequacy Ratio) has been worked out based on Basel-I and Basel-II guidelines. CAR is estimated to be above the regulatory minimum level of 9% Quantitative Disclosures: (` in Crores) (a) Capital requirements for credit risk: U Portfolios subject to standardised approach : 4418.04 (b) Capital requirements for market risk: U Standardised duration approach : 96.41 (c) Capital requirements for operational risk: U Basic indicator approach : 353.26 Total Capital Requirement at regulatory minimum level of 9% : 4867.71 (d) Total and Tier I capital adequacy ratio : Total CAR : 12.16% : CAR (Tier-I) : 9.11% DF-4 : CREDIT RISK: GENERAL DISCLOSURES: (INCLUDING EQUITIES): Qualitative Disclosures: (a) General Qualitative Disclosures i. Definitions of “Impaired Assets”: Bank is following extant RBI definitions of these categories. (The definitions used are given in Appendix-II). ii. Credit Risk Management: UÊ Risk Governance Structure is in place (organization chart as per Appendix-VI). UÊ Credit Risk Management Committee and Risk Management Committee of the Board are the principal committees that review credit risk management UÊ Following Board-approved policies with regard to credit risk are in place: n Credit Risk Management and Loan Policy n Credit Risk Mitigation & Collateral Management Policy n Stress Testing Policy UÊ Bank’s policies take into account the need for better credit risk management and avoidance of risk concentration UÊ Policies are reviewed periodically. UÊ Exposure limits for Single Borrower, Group Entities, different categories of borrowers, specific industry /sector, etc. have been stipulated. UÊ Specific norms and guidelines for appraisal and sanction, documentation, inspection and monitoring, renewal, maintenance, rehabilitation and management of assets have been stipulated in the Credit Risk Management and Loan Policy, with provision of adequate leg room for innovation and deviation permissible under a proper authority structure. UÊ Stress test on advances is carried out at quarterly intervals and placed before the CRMC and RMCB for review. 83 JGKFLLL3FEÈE7IEKL D ML 84 Quantitative Disclosures: b) Total Gross Credit Exposures (Fund-Based and Non-Fund based separately), without taking into account the effect of Credit Risk Mitigation techniques, e.g. Collaterals and Netting ( ` in Crores) EXPOSURE AMOUNT TOTAL FUND-BASED LOANS & ADVANCES 58473.68 OTHER ASSETS 8331.71 (other assets include claims on Govt./RBI, balances 66805.39 with banks, call lendings, inter-office balances, premises, furniture & fixtures and other sundry items) $ NON FUND BASED LETTERS OF CREDIT, BANK GUARANTEES (Gross) 9850.75 FOREIGN EXCHANGE FORWARD CONTRACTS. 12817.39 OTHERS 8174.49 30842.63 (others includes un-utilised limit, underwriting & standby commitments, claims against the bank not acknowledged as debts and other contingent items) INVESTMENTS 16386.95 16386.95 (Banking Book only) GRAND TOTAL OF CREDIT RISK OUTSTANDING EXPOSURE 114034.97 $ Gross exposure without applying credit conversion factor. (` in Crores) (c) Geographic Distribution of Credit Risk Exposure: • DOMESTIC 114034.97 • OVERSEAS NIL (d) Industry-wise distribution of outstanding credit risk exposures (Fund-based and Non-Fund-Based): As per Appendix-III (e) Residual Contractual Maturity Breakdown of Assets & Interest Rate Sensitivity As per Appendix-IV (a), (b), (c) and (d) (f) Amount of Gross NPAs 2119.49 • Substandard 1028.21 • Doubtful 1 645.43 • Doubtful 2 184.95 • Doubtful 3 46.67 • Loss 214.23 (g) Net NPAs 1303.28 (h) NPA Ratios Gross NPA to Gross Advances 3.62% Net NPA to Net Advances 2.27% 85 (L ) MEZY4KGVJLGOSWLG-S LTBFTBNSLKQ LP J[LKG&)LELTL ELT ) 1651.47 JGKP;V 1627.88 EFI 1159.86 WG6SFLTL ELT 2119.49 (L ) Y4KGVJLGOSWLG-S LTBETJ[LPLVLTBFTBNSLKQ LP J[LKG&)LELTL ELT 705.05 WPGETOL4KLVGE TY TJ[LPLV 561.72 WPGETOL4KLVGE TY TWJZT J[E7IEKLMLKLIML 86 (i) Movement of Gross NPAs Opening balance (as on 01.04.2012) 1651.47 Additions 1627.88 Reductions 1159.86 Closing balance (as on 31.03.2013) 2119.49 (j) Movement of NPA Provisions: Opening balance (01.04.2012) 705.05 Provisions made during the period 561.72 Write-offs during the period 450.55 Write-back of excess provisions during the period - Closing balance (31.03.2013) 816.21 (k) Amount of Non-Performing Investments (gross) Banking Book 0.00 (l) Amount of Provisions held for Non- Performing Investments (Banking Book) 0.00 (m) Movement of provision for depriciation on investments (Banking Book) Opening Balance NPI Provisions(01.04.2012) 23.13 Provisions held for Depreciation/Additional Provisions made during the period 7.60 Write offs 13.94 Write-back of excess provisions 0.00 Closing Balance (31.03.2013) 16.79 DF-5 CREDIT RISK: DISCLOSURES FOR PORTFOLIOS SUBJECT TO STANDARDISED APPROACH: Qualitative Disclosures: 5(a) Qualitative Disclosures Remarks Domestic Credit Rating Agencies: I Names of credit rating CRISIL, ICRA, CARE, India Ratings, Brickwork Rating and SME Rating Agency of agencies used India Ltd. (SMERA) International Rating Agencies (IRA): FITCH, Moody’s and S& P II. Changes, if any, since prior Two new domestic credit rating agencies viz. Brickwork Rating and SME Rating period disclosures in the Agency of India Ltd. (SMERA), which were recognized by RBI were added identified rating agencies and reasons for the same III Types of exposures for Ratings done by the identified rating agency are to be used for various types of which each agency used/ exposures as follows: to be used (i) For exposures with a contractual maturity of less than or equal to one year (except Cash Credit, Overdraft and other Revolving Credits), Short-term Ratings will be applicable. (ii) For domestic Cash Credit, Overdraft and other Revolving Credits (irrespective of the period) and for Long Term exposures of over 1 year, Long Term Ratings will be applicable. (iii) For overseas exposures, irrespective of the contractual maturity, Long Term Ratings given by IRAs will be applicable. 87 IV D4BEYDHIFTBMLP;UGVE OI LL;PGGVY;FGPGL7KT79L HFLKTGVUILULTG 88 IV Description of the Long-term issue-specific ratings (our own exposures or other issuance of debt by process used to transfer the same borrower-constituents/counter-party) or issuer (borrower-constituents/ public issue ratings onto counter-party) ratings can be applied to other unrated exposures of the same comparable assets in the borrower-constituents/ counter-party in the following cases: banking book (i) If the issue-specific rating or issuer rating maps to a risk weight equal to or higher than the unrated exposures any other un-rated exposure on the same counter-party will be assigned the same risk weight, if the exposure ranks pari- passu or junior to the rated exposure in all respects. (ii) In cases where the borrower-constituent/ counter-party has issued a debt (which is not a borrowing from our Bank), the rating given to that debt may be applied to Bank’s unrated exposures if the Bank’s exposure ranks pari-passu or senior to the specific rated debt in all respects and the maturity of Bank’s unrated exposures are not later than maturity of rated debt. Quantitative Disclosures: The exposure amount after Risk Mitigation subject to Standardised Approach i.e. amount of outstanding (rated and unrated taken together) in different risk-buckets as well as the amount that are deducted, if any: (` in Crore) UÊ Below 100 % Risk Weight : 67234.80 UÊ @100% Risk Weight: 31211.95 UÊ More than 100% Risk weight: 10839.98 UÊ Amount Deducted, if any: 4748.24 (credit risk mitigation including from staff) TOTAL 114034.97 DF-6 CREDIT RISK MITIGATION: DISCLOSURES FOR STANDARDISED APPROACH: (a) General Qualitative Disclosures: I Policies and Processes for Collateral Valuation and Management A Credit Risk Mitigation and Collateral Management Policy, addressing the Bank’s approach towards the credit risk mitigants used for capital calculation is in place. The objective of this Policy is to enable classification and valuation of credit risk mitigants in a manner that allows regulatory capital adjustment to reflect them. The Policy adopts the Comprehensive Approach, which allows full offset of collateral (after appropriate haircuts) against exposures, by effectively reducing the exposure amount by the value ascribed to the collateral. The following issues are addressed in the Policy: (i) Classification of credit risk mitigants (ii) Acceptable credit risk mitigants (iii) Documentation and legal process requirements for credit risk mitigants (iv) Valuation of collateral (v) Custody of collateral (vi) Insurance (vii) Monitoring of credit risk mitigants 89 II ML ¹ YRLL3FE G7*JLI MB J[E7IEKL i) JL LGPºLI (i) D4BEFTBUFLKLTE. LOLSLD4BE^LKLULKIUFLÈFLLJ LW'LPLSRZVL3FEGPZT 90 II Main types of credit risk management techniques: S.No. Qualitative Remarks Disclosures i) Eligible financial (i) Cash (as well as certificates of deposit or comparable instruments, including fixed collaterals deposit receipts, issued by the lending bank) on deposit with the Bank (ii) Gold including both bullion and jewellery. However, the value of the collateralized jewellery is arrived at after notionally converting these to 99.99 % purity. (iii) Securities issued by Central and State Governments. (iv) Kisan Vikas Patra and National Savings Certificates for which no lock-in-period is operational and where they can be encashed within the holding period. (v) Life insurance policies with a declared surrender value of an insurance company which is regulated by an insurance sector regulator. (vi) Debt securities rated by a recognized Credit Rating Agency in respect of which the Bank is sufficiently confident about the market liquidity, where these are rated a) at least BBB(-) when issued by public sector entities and by other entities (including banks and Primary Dealers); or b) at least PR3/P3/F3/A3 for short-term debt instruments. (vii) Debt securities not rated by a recognized Credit Rating Agency where these are: a) issued by a bank; and b) listed on a recognized exchange; and c) classified as senior debt; and d) all rated issues of the issuing bank of the same seniority are rated at least BBB(-) or PR3/ P3 / F3 / A3 by a chosen Credit Rating Agency; and e) there is no information available that suggests that the issue justifies a rating below BBB(-) or PR3/ P3 / F3 / A3 (as applicable) and; f) Bank is sufficiently confident about the market liquidity of the security. (viii) Units of Mutual Funds regulated by the securities regulator in the jurisdiction of the Bank’s operation, where: • a price for the units is publicly quoted daily i.e., where the daily NAV is available in public domain; and • the mutual fund is limited to investing in the instruments listed in this paragraph, para II (i). ii) On-balance sheet Where the Bank netting a) has a well-founded legal basis for concluding that the netting or offsetting agreement is enforceable in each relevant jurisdiction regardless of whether the counter-party is insolvent or bankrupt; b) is able at any time to determine the loans/advances and deposits with the same counter-party that are subject to the netting agreement; and c) monitors and controls the relevant exposures on a net basis, iii) Guarantees Where guarantees are direct, explicit, irrevocable and unconditional and satisfy the operational requirements detailed in the RBI guidelines 91 III UFLVSIELN7KJL7I;ETFR< ÈELK PBNVEILJL LSL JL LUFLVSI LTBEI+AB JGKFLLL3FEÈE7IEKL W D4BEYDHIJ[GS)LXGS²S %MJLT5 LKKLGLLX6 D 7TG.BYDHIJ[GS)LXGS²S %MJLT5 LKKLGLGUMFTBDLULKULTG 92 III Main types of guarantor counter-party and their creditworthiness: Range of eligible guarantors (counter-guarantors): i) Sovereigns, sovereign entities (including BIS, IMF, European Central Bank and European Community as well as MDBs referred to in RBI guidelines, ECGC and CGTSI), banks and primary dealers with a lower risk weight than the counter-party; (ii) Other entities rated AA(-) or better. These include guarantee cover provided by parent, subsidiary and affiliate companies that have a lower risk weight than the obligor. The rating of the guarantor should be an entity rating which has factored in all the liabilities and commitments (including guarantees) of the entities. IV Information about (credit or market) risk concentration within the mitigation taken: As per Appendix V Quantitative Disclosures: (b) For each separately disclosed credit risk portfolio the total exposure (after, where applicable, on-or off balance sheet netting) that is covered by eligible financial collateral after the application of haircuts. • Eligible Financial Collateral after haircuts (excl. Staff loans): ` 4748.24 crores (c) For each separately disclosed portfolio the total exposure (after, where applicable, on-or off-balance sheet netting) that is covered by guarantees/credit derivatives (whenever specifically permitted by RBI): NIL DF-7 SECURITISATION: DISCLOSURE FOR STANDARDISED APPROACH Qualitative Disclosures UÊ Bank's objective in relation to Securitisation activity is to achieve improvements in leverage ratios, asset performance & quality and to achieve desirable investment & maturity characteristics. UÊ Loss on sale on transfer of assets to Special Purpose Vehicle (SPV) shall be recognized upfront by the Bank. UÊ Bank shall amortize the profit on sale of the securitised assets over the life of the Pass Through Certificates (PTC) assets issued or to be issued by SPV. Quantitative Disclosures: a) Banking Book: The amount of exposure securitized: NIL b) Trading Book: The amount of exposure securitized which is subject to market risk: NIL DF-8 MARKET RISK IN TRADING BOOK Qualitative Disclosures: UÊ The following portfolios are covered by the Standardised Duration approach for calculation of Market Risk: n Securities held under the Held for Trading (HFT) and Available for Sale (AFS) categories. n Derivatives entered into for hedging HFT & AFS securities and Derivatives entered into for Trading. UÊ Board approved Trading Policies, Investment Policy, Market Risk Management Policy with defined market risk management parameters for various asset classes are in place. UÊ Market Risk Management Department and Mid-Office are responsible for identification, assessment, monitoring and reporting of market risk in treasury operations. UÊ Risk monitoring is an on-going process with the position reported to the top management, Market Risk Management Committee and Risk Management Committee of the Board at stipulated intervals. 93 l J2 MÈGS)LXGS LTBW'LPL7TG.BYETGZ ELTC;)LIG.KLCPTG7PVHIBGE TY TH4B" l ULTG JGKFLLL3FEÈE7IEKL JGKQLZVL3FEULTG 94 UÊ No Derivatives have been entered into for AFS securities or Trading. UÊ Risk management and reporting is based on parameters such as Modified Duration, PVO1, Exposure and Gap Limits, VaR, etc., UÊ Forex Open Position limits (Daylight / Overnight), deal-wise cut-loss limits stop-loss limit, Profit / Loss in respect of cross currency trading are properly monitored and exception reporting is regularly carried out. Quantitative Disclosures: Capital Requirement for Market Risk under Standardised Duration Approach (@ 9%): (` in crore) • Interest Rate Risk : 60.73 • Equity Position Risk : 34.33 • Forex Risk : 1.35 TOTAL : 96.41 DF-9 OPERATIONAL RISK Qualitative Disclosures: UÊ Operational Risk Management Policy of the Bank is in place, which establishes a consistent framework for systematic and proactive identification, assessment, measurement, monitoring and mitigation of operational risk. The policy applies to all business and functional areas within the Bank. The Operational Risk Management Policy is supplemented by operational systems, procedures and guidelines which are periodically updated. Operational Risk Management Committee has been constituted. UÊ Bank has put in place the following measures to control and mitigate operational risks: ! Book of instructions, circulars, job cards, training programmes etc. ! Delegation of financial powers at various levels of officers for different type of financial transactions ! Inputs on operational risk are included in the relevant training programmes ! Bank obtains insurance cover for potential operational risks ! A system of prompt submission of reports on frauds is in place UÊ Risk Control and Self Assessment (RCSA) exercise for identifying and mitigating operational risks has been initiated at the Bank’s branches and Zonal Offices. UÊ A web-based application has been developed and rolled out for automatic collation of responses in different RCSA workshops to facilitate generation of Zone-wise, Business Segment-wise and Whole-Bank-level heat-maps. UÊ Disaster Recovery Policy and Business Continuity Planning Policy have been put into place Quantitative Disclosures: Capital Charge on Operational Risk : ` 353.26 crores (As per minimum regulatory capital requirement) 95 ÈE7IEKLMLKLID4BEYDHIFTB$ LUOKULTG 96 DF-10 INTEREST RATE RISK IN BANKING BOOK (IRRBB) Qualitative Disclosures: UÊ Earning at Risk (EaR) is measured as per ALM guidelines of RBI using Traditional Gap Analysis method. UÊ Impact of change in Interest Rates on Market Value of Equity (MVE) is measured using Duration Gap Analysis method, taking whole Balance Sheet, as per RBI guidelines. UÊ MVE is also measured using Duration Gap Analysis method, taking only Banking Book exposures into account as per RBI guidelines on Supervisory Review Process (Pillar-II of Basel-II framework). UÊ Key Assumptions used based on behavioral studies: a) Saving Bank deposits: 100% of such deposits treated as interest bearing b) Term deposits: 4% of such deposits prepaid due to embedded option c) Current deposits: taken as rate sensitive for IRR purpose as per RBI guidelines d) Term Loans: prepayment @ 0.08% of total term loans Quantitative Disclosures: (i) Change in NII: At the present level of our assets / liabilities, NII is likely to increase / decrease by ` 167.16 crore., if there is a upward / downward movement in interest rate by 1% (assuming parallel interest rate change on both assets and liabilities except Savings Bank rate that will remain constant at 4% ). (ii) Change in MVE: e) Taking the whole Balance Sheet into account, Market Value of Equity (MVE) will increase / decrease by `224.67 crore if there is an upward / downward movement in interest rate by 1%. f) Taking only Banking Book exposures into account, Market Value of Equity (MVE) will increase / decrease by `200.98 crore if there is an upward / downward movement in interest rate by 1%. 97 JGKGL7 - I VPLT6FTL>UG7Z Complex W'LPLHLCGD[.JXUIGPZT 98 APPENDIX – I Summary information on the terms and conditions of the main features of all capital instruments, including innovative, complex or hybrid capital instruments eligible for inclusion in Tier-I or Tier-II capital : Type of Capital Main features Innovative Perpetual Debt Unsecured, non-covertible, subordinated, Perpetual Bonds in the nature of Promissory Notes. Call op- Instruments tion and step-up coupon available after 10 years (subject to RBI permission at the time). 20.03.2008 Other details: Amount: ` 200 cr. Tenor : Perpetual (call option available after 10 years with permission of RBI). Coupon: 9.85% payable annually. Ratings: AAA by CARE and AAA-Stable by CRISIL. Upper Tier-II Subordinated Type of Instrument : Unsecured, redeemable, non-convertible Subordinated Upper Tier-II Bonds in the Bonds nature of Promissory Notes. Call option is available after 120 months(subject to RBI permission at the 22.03.2007 time). Other details: Amount : ` 150 cr Tenor : 180 months maturing on: 22.03.2022 Coupon : 10.25% (fixed, payable annually) Rating : CARE ‘AAA’ and CRISIL ‘AAA/Stable’ Upper Tier-II Subordinated Type of Instrument : Unsecured, redeemable, non-convertible Subordinated Upper Tier-II Bonds in the Bonds nature of Promissory Notes. Call option is available after 120 months(subject to RBI permission at the 15.10.2007 time). Other details: Amount : ` 300 cr Tenor : 180 months maturing on: 15.10.2022 Coupon : 9.78% (fixed, payable annually) Rating : CARE ‘AAA’ and CRISIL ‘AAA/Stable’ Lower Tier-II Subordinated Type of instrument : Unsecured, redeemable, non-convertible subordinated bonds in the nature of Prom- Bonds issory Note. These are plain vanilla bonds with no special features like put or call option. (Third Series) Other details: 21.02.2005 Amount : ` 200 cr Tenure : 111 months maturing on: 21.05.2014 Coupon : 7.20% (fixed, payable annually) Rating : ‘AAA’ by CRISIL Lower Tier-II Subordinated Type of instrument : Unsecured, redeemable, non-convertible subordinated bonds in the nature of Bonds Promissory Note. These are plain vanilla bonds with no special features like put or call option. (Fourth Series) 17.11.2005 Other details: Amount : ` 300 cr Tenure : 111 months maturing on: 17.02.2015 Coupon : 7.45% (fixed, payable annually) Rating : ‘AAA’ by CRISIL and ‘LAAA’ by ICRA Lower Tier-II Subordinated Type of instrument : Unsecured, redeemable, non-convertible subordinated bonds in the nature of Bonds Promissory Note. These are plain vanilla bonds with no special features like put or call option. (Fifth Series) Other details: 10.08.2006 Amount : ` 500 cr Tenure : 120 months maturing on: 10.08.2016 Coupon : 9.15% (fixed, payable annually) Rating : AAA/Stable (CRISIL) LAAA (Stable) (ICRA) Lower Tier-II Subordinated Type of instrument : Unsecured, redeemable, non-convertible subordinated bonds in the nature of Bonds Promissory Note. These are plain vanilla bonds with no special features like put or call option. 20.03.2012 Other details: Amount : ` 500 cr Tenure : 120 months maturing on: 20.03.2022 Coupon : 9.02% (fixed, payable annually) Rating : ‘AAA’ by CRISIL and ‘LAAA’ by ICRA 99 JGKGL7 - II WVU;EWLG-S LJGK)LLLL Y4KGVJLGOSWLG-S L J7_7L²SWLG-SMGHS E TMIWLG-SSDY4KGVJLGOSHLTULSIH4>UDPHD4BEETGZ WL WU;VEKVLD6OEKOTSIH4" ELTC;)LIL LWGY[FY4KGVJLGOSWLG-SHLTULSLH4UD GF LOILETM&D6FTB$ LUWL4K!W'LPLFXZVEIGESTBGOVLTBMTWGEHLTVTJKWGSOT HLTULSIH4B" WGGPEL;!VEOML 100 APPENDIX - II DEFINITIONS OF IMPAIRED ASSETS Non-performing assets An asset, including a leased asset, becomes non-performing when it ceases to generate income for the bank. Non-Performing Asset (NPA) is a loan or an advance where: Interest and/ or installments of principal remain overdue for a period of more than 90 days in respect of a Term Loan, The account remains ‘out of order’, in respect of an Overdraft/ Cash Credit (OD/ CC), The bill remains overdue for a period of more than 90 days in the case of bills purchased and discounted, The installment of principal or interest thereon remains overdue for two crop seasons for short duration crops, The installment of principal or interest thereon remains overdue for one crop seasons for long duration crops, The amount of liquidity facility remains outstanding for more than 90 days, in respect of a securitisation transaction undertaken in terms of guidelines on securitisation dated February 1, 2006. In respect of derivative transactions, the overdue receivables representing positive mark-to-market value of a derivative contract, if these remain unpaid for a period of 90 days from the specified due date for payment. In case the interest due & charged during any quarter is not serviced fully within 90 days from the end of the quarter the account is classified as NPA 'Out of order' status An account is treated as 'out of order' if the outstanding balance remains continuously in excess of the sanctioned limit/ drawing power. In cases where the outstanding balance in the principal operating account is less than the sanctioned limit/ drawing power, but either there are no credits continuously for 90 days in the account as on the date of balance sheet or the credits are not enough to cover the interest debited during the same period, these accounts are also treated as ‘out of order’. Overdue Any amount due to the bank under any credit facility is ‘overdue’ if it is not paid on the due date fixed by the bank. 101 JGKGL7 - III LULTG ERZ LTY 83192.34 81072.85 2119.49 30842.63 102 APPENDIX-III INDUSTRY-WISE DISTRIBUTION OF EXPOSURES - FUND BASED & NON-FUND BASED (` in crores) CODE INDUSTRY FUND BASED STANDARD NON NON-FUND OUTSTANDING ASSETS PERFORMING BASED ASSETS OUTSTANDING 1 COAL 193.85 160.30 33.55 173.89 2 MINING 999.53 942.98 56.55 51.30 3 IRON & STEEL 3946.20 3620.72 325.48 1093.80 4 OTHER METAL & METAL PRODUCTS 1019.94 1019.08 0.86 197.67 5 ALL ENGINEERING 2091.16 2077.01 14.15 1146.45 5.1 (OF WHICH ELECTRONICS) 1065.39 1062.20 3.18 383.79 6 ELECTRICITY 2726.46 2726.46 0.00 496.29 7 COTTON TEXTILES 1883.69 1864.60 19.09 126.49 8 JUTE TEXTILES 11.29 10.14 1.15 129.89 9 OTHER TEXTILES 1683.04 1626.15 56.89 177.14 10 SUGAR 65.00 64.97 0.03 2.95 11 TEA 3.77 3.76 0.01 0.00 12 FOOD PROCESSING 1101.68 1093.48 8.2 131.19 13 VEGETABLE OILS & VANASPATI 409.96 408.13 1.83 469.61 14 TOBACCO & TOBACCO PRODUCTS 39.66 19.58 20.08 0.51 15 PAPER & PAPER PRODUCTS 419.49 388.94 30.55 185.16 16 RUBBER & RUBBER PRODUCTS 811.16 798.02 13.14 312.42 17 CHEMICALS,DYES, PAINTS ETC 2519.87 2440.62 79.25 209.51 17.1 OF WHICH FERTILISERS 647.34 642.44 4.9 1.09 17.2 OF WHICH PETRO-CHEMICALS 4.73 4.73 0 0.55 17.3 OF WHICH DRUGS & PHARMACEUTICALS 264.01 213.49 50.52 44.23 18 CEMENT 667.13 665.59 1.54 93.13 19 LEATHER & LEATHER PRODUCTS 59.14 53.54 5.6 25.93 20 GEMS & JEWELLERY 802.95 790.92 12.03 367.53 21 CONSTRUCTIONS 78.11 77.27 0.84 10.52 22 PETROLEUM 118.71 118.68 0.03 555.18 23 AUTOMOBILES INCULDING TRUCKS 586.23 584.49 1.74 89.99 24 COMPUTER SOFTWARE 0.00 0.00 0.00 0.00 25 INFRASTRUCTURE 4311.59 4172.56 139.03 1031.71 25.1 OF WHICH POWER (excl ELECTRICITY at 6) 1900.36 1824.11 76.24 411.75 25.2 OF WHICH TELECOMMUNICATIONS 124.10 124.09 0.01 79.32 25.3 OF WHICH ROAD & PORTS 2113.99 2056.04 57.95 169.50 26 OTHER INDUSTRIES 701.81 671.77 30.04 86.08 27 NBFC 3369.33 3369.15 0.18 28.93 28 OTHERS ADVANCES 27852.93 26585.28 1267.65 2657.47 29 OTHER ASSETS (INCLUDING BANKING BOOK) 24718.66 24718.66 0.00 20991.88 TOTAL CREDIT EXPOSURE 83192.34 81072.85 2119.49 30842.63 103 JGKGL7 - IV ( W) LQLYSSKZSLELGPPKL WVR LTY WPGL7JGKJ%PSL (`EKLT. FTB) DGHY;FV GOV 2-7 8-14 1-14 15-28 29 GOV >3-6 FLH >6-12 >1-3 PL; >3-5 PL; > 5 PL; ERZ 1 GOV GOV GOV GOV 3 FLH FLH LTY 1. JXUI 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 70.00 70.00 2. WLKG\LSGVG PBWGLTL 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 4694.14 4694.14 3. UFLKLGL L 77.77 924.42 890.69 1892.88 597.35 7267.95 3305.63 3482.13 25480.89 15241.70 14657.44 71925.97 (I) QLZXUFLKLGL L 22.06 132.37 154.43 308.86 0.00 0.00 0.00 0.00 1853.17 1103.08 1147.20 4412.31 (II) DQSD4BEUFLKLGL L 30.63 183.80 214.44 428.87 0.00 0.00 0.00 0.00 9220.67 5360.85 6433.02 21443.41 (III) GF LOIUFLKLGL L 25.08 608.25 326.92 960.25 351.11 2280.25 1625.17 2263.21 14407.05 8777.77 7077.22 37742.03 (IV) UFLJ[FLLJ L 0.00 0.00 194.90 194.90 246.24 4987.70 1680.46 1218.92 0.00 0.00 0.00 8328.22 4. NLK 2100 0 0 2100 0 0 630 0 708 500 1150 5087 (I) FLBY PBW:JMXQVL 2099.61 0.00 0.00 2099.61 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2099.61 (II) W6SKD4BE MLPG 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 (III) JRVGP;ºL 0.00 0.00 0.00 0.00 0.00 0.00 630.00 0.00 207.85 0.00 0.00 837.85 (IV) W6 G7 KI PB II 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 500.00 500.00 1150.00 2150.00 D.M 5. W6 OT SL PBJ[LPLV 45.57 79.90 98.24 223.71 98.51 318.53 378.62 218.28 1178.64 41.84 81.33 2539.46 (I) OT GDZ 9.76 58.58 68.34 136.68 91.12 0.00 0.00 0.00 911.24 0.00 0.00 1139.04 (II) W6SKEL L;Z MFL LTUV 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 (III) J[LPLV 5.03 4.91 6.13 16.07 7.39 308.33 47.09 18.14 186.41 24.40 44.02 651.85 (IV) W6 30.78 16.41 23.77 70.96 0.00 10.20 331.53 200.14 80.99 17.44 37.31 748.57 6. J[GSDWGÉLESFLMIFL 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 (I) MB-'LLWLTB 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 (II) Y[LHE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 7. VEOL!WLTPK.L¾7! EL ;LIZJXBUIETFLBYLET 0.35 2.10 2.45 4.90 4.89 19.57 19.57 146.80 0.00 0.00 0.00 195.73 L7EELNJ LTYVHIBGE L Y L)LLY 8 ML 104 APPENDIX - IV (a) STATEMENT OF STRUCTURAL LIQUIDITY AS ON 31.03.2013 Sub-Total Residual Maturity ( ` in crore) 2-7 8-14 15-28 29D-3- >3-6 >6-12 >1-3 >3-5 > 5 OUTFLOWS Day 1 1-14 days TOTAL Days DAYS DAYS MTHS. MTHS. MTHS. YEARS YEARS YEARS 1. CAPITAL 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 70.00 70.00 2. RESERVES AND SURPULS 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 4694.14 4694.14 3. DEPOSITS 77.77 924.42 890.69 1892.88 597.35 7267.95 3305.63 3482.13 25480.89 15241.70 14657.44 71925.97 (I) CURRENT DEPOSITS 22.06 132.37 154.43 308.86 0.00 0.00 0.00 0.00 1853.17 1103.08 1147.20 4412.31 (II) SAVINGS BANK DEPOSITS 30.63 183.80 214.44 428.87 0.00 0.00 0.00 0.00 9220.67 5360.85 6433.02 21443.41 (III) TERM DEPOSITS 25.08 608.25 326.92 960.25 351.11 2280.25 1625.17 2263.21 14407.05 8777.77 7077.22 37742.03 (IV) CERTIFICATE OF DEPOSITS 0.00 0.00 194.90 194.90 246.24 4987.70 1680.46 1218.92 0.00 0.00 0.00 8328.22 4. BORROWINGS 2100 0 0 2100 0 0 630 0 708 500 1150 5087 (I) CALL AND SHORT NOTICE 2099.61 0.00 0.00 2099.61 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2099.61 (II) INTER-BANK(TERM) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 (III) REFINANCES 0.00 0.00 0.00 0.00 0.00 0.00 630.00 0.00 207.85 0.00 0.00 837.85 (IV) OTHERS (Tier I&II Bonds) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 500.00 500.00 1150.00 2150.00 5.OTHER LIABILITIES AND PROV. 45.57 79.90 98.24 223.71 98.51 318.53 378.62 218.28 1178.64 41.84 81.33 2539.46 (I) BILLS PAYABLE 9.76 58.58 68.34 136.68 91.12 0.00 0.00 0.00 911.24 0.00 0.00 1139.04 (II) INTER-OFFICE ADJUST- 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 MENTS (III) PROVISIONS 5.03 4.91 6.13 16.07 7.39 308.33 47.09 18.14 186.41 24.40 44.02 651.85 (IV) OTHERS (currency Trans., Adjusting others, Asso. Bank 30.78 16.41 23.77 70.96 0.00 10.20 331.53 200.14 80.99 17.44 37.31 748.57 Trans. etc.) 6. LINES OF CREDIT COMMITTED TO 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 (I) INSTITUTIONS 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 (II) CUSTOMERS 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 7. UNAVAILED PORTION OF 0.35 2.10 2.45 4.90 4.89 19.57 19.57 146.80 0.00 0.00 0.00 195.73 CASH 8 LCs/BGs 1.73 10.36 12.08 24.17 24.17 24.17 39.60 8.75 0.00 0.00 0.00 120.86 9.REPOS 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 10.BILLS REDISCOUNTED(DUPN) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 11. SWAPS(BUY/SELL)/ 66.48 375.36 61.81 503.65 452.61 2590.68 1669.22 1110.62 11.54 0.00 0.00 6338.32 MATURING FORWARDS 12.INTEREST PAYABLE 0.83 9.87 9.51 20.21 6.38 77.60 35.29 37.18 272.06 162.74 156.50 767.96 13. OTHERS(SPECIFY) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 A. TOTAL OUTFLOWS 2292.34 1402.01 1074.78 4769.13 1183.91 10298.50 6077.93 5003.76 27650.98 15946.28 20809.41 91739.90 Cumulative out flows 2292.34 3694.35 4769.13 4769.13 5953.04 16251.54 22329.47 27333.23 54984.21 70930.49 91739.90 105 JGKGL7 - IV (D) LQLYSSKZSLELGPPKL WVR LTY WPGL7JGKJ%PSL (`EKLT. FTB) W6SJ[;PLH GOV 1 2-7 GOV 8-14 1-14 15-28 29 GOV >3-6 FLH >6-12 FLH >1-3 PL; >3-5 PL; > 5 PL; ERZ GOV GOV GOV 3 FLH LTY 1. VEO 353.00 0.00 0.00 353.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 353.00 2. )LLKSI GK5 LP;D4BEETJLM 2883.64 37.56 36.19 2957.39 24.27 295.30 134.31 141.48 1035.30 619.28 595.53 5802.86 LTL 3. W6 D4BELTBETJLMLTL 30.85 0.00 0.00 30.85 0.00 0.00 0.00 0.00 0.00 0.00 0.00 30.85 (i) QLZX MBQ IWM6SRZVETGZ -5%* -10%* -15%* -15%* -20%* -30% -30% -30% -30% -30% -30% GPPTEJXL;-SK 106 APPENDIX - IV (b) STATEMENT OF STRUCTURAL LIQUIDITY Sub-Total Residual Maturity (` in crore) 8-14 1-14 15-28 29D-3- >3-6 >6-12 >1-3 >3-5 > 5 INFLOWS Day 1 2-7 Days TOTAL DAYS days DAYS MTHS. MTHS. MTHS. YEARS YEARS YEARS 1 CASH 353.00 0.00 0.00 353.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 353.00 2. BALANCES WITH RBI 2883.64 37.56 36.19 2957.39 24.27 295.30 134.31 141.48 1035.30 619.28 595.53 5802.86 3. BALANCES WITH OTHER 30.85 0.00 0.00 30.85 0.00 0.00 0.00 0.00 0.00 0.00 0.00 30.85 BANKS (i) CURRENT ACCOUNT 30.85 0.00 0.00 30.85 0.00 0.00 0.00 0.00 0.00 0.00 0.00 30.85 (ii) MONEY AT CALL AND SHORT/TERM/PLACE- 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 MENT 4. INVESTMENTS 17.37 58.00 24.28 99.65 98.94 1709.99 824.42 151.56 4194.05 5250.27 7833.80 20162.68 (INCLUDING REPOS) 5. ADVANCES (PERFORMING) 892.37 871.43 1087.10 2850.90 1311.88 1867.57 2144.89 3218.03 33067.04 4328.71 6591.37 55380.39 (i) BILLS PURCHASED AND 445.78 116.02 174.89 736.69 139.63 392.68 129.88 1.30 0.00 1.19 0.05 1401.42 DISCTD (ii) CASH CREDITS, OVERDRAFTS,DEMAND 36.33 217.96 254.29 508.58 254.29 0.00 0.00 0.00 24665.72 0.00 0.00 25428.59 LOAN (iii) TERM LOANS 410.26 537.45 657.92 1605.63 917.96 1474.89 2015.01 3216.73 8401.32 4327.52 6591.32 28550.38 (iv) Rceivable under Agr 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Debt Relief 6. NPAs (ADVANCES) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 825.39 477.89 1303.28 7. FIXED ASSETS 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 231.32 231.32 8. OTHER ASSETS 321.52 343.19 55.73 720.44 1.37 162.90 0.00 36.76 38.30 2.01 28.62 990.40 (i) INTER OFFICE ADJ. 0.00 275.13 0.00 275.13 0.00 0.00 0.00 0.00 0.00 0.00 0.00 275.13 (IBIT,clearing a/c, ATM) (ii) OTHERS (Suspence A/c, 321.52 68.06 55.73 445.31 1.37 162.90 0.00 36.76 38.30 2.01 28.62 715.27 Br. Sys. Susp. etc) 9. REVERSE REPOS 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 10. SWAPS (SELL/BUY)/ 0.01 438.13 0.50 438.64 354.37 3629.74 1772.87 1145.70 0.00 0.00 0.00 7341.32 11. BILLS REDISCOUNTED 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 12. INTEREST RECEIVABLE 0.00 0.00 0.00 0.00 0.00 334.32 432.35 0.00 0.00 0.00 0.00 766.67 13. COMMITTED LINES OF 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 CREDIT 14 (A) OTHERS (Devolvable 0.00 0.00 0.00 0.00 24.17 24.17 24.17 39.60 8.75 0.00 0.00 120.86 LCs/BGs) 15. Export Refinance Limit 2013.52 0.00 0.00 2013.52 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2013.52 B. TOTAL INFLOWS 6512.28 1748.31 1203.80 9464.39 1815.00 8023.99 5333.01 4733.13 38343.44 11025.66 15758.53 94497.15 C. MISMATCH (B-A) 4219.94 346.30 129.02 4695.26 631.09 -2274.51 -744.92 -270.63 10692.46 -4920.62 -5050.88 D. CUMULATIVE MISMATCH 4219.94 4566.24 4695.26 4695.26 5326.35 3051.84 2306.92 2036.29 12728.75 7808.13 2757.25 E. C AS % TO A 184% 25% 12% 98% 53% -22% -12% -5% 39% -31% -24% F. D AS % TO CUMULATIVE 184% 124% 98% 98% 89% 19% 10% 7% 23% 11% 3% OUTFLOWS Prudential Level for mismatch @ @ @ @ @ -50% -50% -60% -60% -60% -60% Prudential Level for cumulative -5%* -10%* -15%* -15%* -20%* -30% -30% -30% -30% -30% -30% mismatch @ RBI has prescribed cumulative mismatch limits as -5%, -10%, -15% and -20% for Day-1, 2-7 days, 8-14 days and 15 - 28 days respectively against the earlier indivisual limit of (-) 20% each for 1 to 14 days and 15 to 28 days buckets. * Figures in italics indicate limits prescribed by RBI. 107 JGKGL7 - IV ( M) $ LUOKMBPOTVLIZSLELGPPKL `EKLT. FTB 1-28 29 - 3 >3-6 >6-12 >1-3 >3-5 > 5 GOV GOV FLH FLH PL; PL; PL; WMBPTOVLIZ ERZ OT SL FLH LTY 1. JXUI 0.00 0.00 0.00 0.00 0.00 0.00 0.00 70.00 70.00 2. WLKG\LSGVGÉL L PBWGLTL 0.00 0.00 0.00 0.00 0.00 0.00 0.00 4694.14 4694.14 3. UFLKLGL L 3442.15 9142.76 27362.02 10541.97 10473.74 4270.67 2280.35 4412.31 71925.97 (I) QLZXUFLKLGL L 0.00 0.00 0.00 0.00 0.00 0.00 0.00 4412.31 4412.31 (II) DQSD4BEUFLKLGL L 0.00 0.00 21443.41 0.00 0.00 0.00 0.00 0.00 21443.41 (III) MLPGUFLKLGL L 3001.01 4155.06 4238.15 9323.05 10473.74 4270.67 2280.35 0.00 37742.03 (IV) UFLJ[FLLJ L 441.14 4987.70 1680.46 1218.92 0.00 0.00 0.00 0.00 8328.22 4. NLK 2099.61 0.00 630.00 0.00 207.85 0.00 0.00 2150.00 5087.46 (I) FLYWL4KW:JMXQVL 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 (II) W6SKD4BE MLPG 2099.61 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2099.61 (III) JRVGP;ºL 0.00 0.00 630.00 0.00 207.85 0.00 0.00 0.00 837.85 (IV) W6 G7 KI PB II 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2150.00 2150.00 D.M 5. W6 OT SL PBJ[LPLV 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2539.46 2539.46 (I) OT GDZ 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1139.04 1139.04 (II) W6SKEL L;Z MFL LTUV 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 (III) J[LPLV 0.00 0.00 0.00 0.00 0.00 0.00 0.00 651.85 651.85 (IV) W6 0.00 0.00 0.00 0.00 0.00 0.00 0.00 748.57 748.57 6. K4JLTU 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 7. JRVD7_7LYSGDZ DUPN 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 8. -P4J ¹ !GP¹ 956.26 2590.68 1669.22 1110.62 11.54 0.00 0.00 0.00 6338.32 OT $ LU 26.59 77.60 35.29 37.18 272.06 162.74 156.50 0.00 767.96 9. W6 -J7EKTB 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 WERZOT SL 6524.61 11811.04 29696.53 11689.77 10965.19 4433.41 2436.85 13865.91 91423.31 108 APPENDIX - IV (c) STATEMENT OF INTEREST RATE SENSITIVITY Residual Maturity (` in crore) >3-6 >6-12 >1-3 >3-5 LIABILITIES 1-28 Days 29D-3MTHS > 5 YEARS N-SENSITIVE TOTAL MTHS MTHS YEARS YEARS 1. CAPITAL 0.00 0.00 0.00 0.00 0.00 0.00 0.00 70.00 70.00 2. RESERVES AND SURPULS 0.00 0.00 0.00 0.00 0.00 0.00 0.00 4694.14 4694.14 3. DEPOSITS 3442.15 9142.76 27362.02 10541.97 10473.74 4270.67 2280.35 4412.31 71925.97 (I) CURRENT DEPOSITS 0.00 0.00 0.00 0.00 0.00 0.00 0.00 4412.31 4412.31 (II) SAVINGS BANK DEPOSITS 0.00 0.00 21443.41 0.00 0.00 0.00 0.00 0.00 21443.41 (III) TERM DEPOSITS 3001.01 4155.06 4238.15 9323.05 10473.74 4270.67 2280.35 0.00 37742.03 (IV) CERTIFICATE OF DEPOSITS 441.14 4987.70 1680.46 1218.92 0.00 0.00 0.00 0.00 8328.22 4. BORROWINGS 2099.61 0.00 630.00 0.00 207.85 0.00 0.00 2150.00 5087.46 (I) CALL AND SHORT NOTICE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 (II) INTER-BANK(TERM) 2099.61 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2099.61 (III) REFINANCES 0.00 0.00 630.00 0.00 207.85 0.00 0.00 0.00 837.85 (IV) OTHERS (Tier I&II Bonds) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2150.00 2150.00 5. OTHER LIABILITIES AND PROV. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2539.46 2539.46 (I) BILLS PAYABLE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1139.04 1139.04 (II) INTER-OFFICE ADJUSTMENTS 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 (III) PROVISIONS 0.00 0.00 0.00 0.00 0.00 0.00 0.00 651.85 651.85 (IV) OTHERS 0.00 0.00 0.00 0.00 0.00 0.00 0.00 748.57 748.57 6. REPOS 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 7. BILLS REDISCOUNTED(DUPN) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 8. SWAPS(BUY/SELL)/ 956.26 2590.68 1669.22 1110.62 11.54 0.00 0.00 0.00 6338.32 INTEREST PAYABLE 26.59 77.60 35.29 37.18 272.06 162.74 156.50 0.00 767.96 9. OTHERS(SPECIFY) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 A. TOTAL LIABILITIES 6524.61 11811.04 29696.53 11689.77 10965.19 4433.41 2436.85 13865.91 91423.31 109 JGKGL7 - IV ( O) $ LUOKMBPOTVLIZSLELGPPKL WPGL7 `EKLT. FTB JGKJ%PSL WLG-S L 1-28 GOV 29 GOV- >3-6 >6-12 >1-3 PL; >3-5 PL; > 5 PL; WMBPTOVLIZ ERZ 3 FLH FLH FLH LTY 1. VEO 0.00 0.00 0.00 0.00 0.00 0.00 0.00 353.00 353.00 2. )LLKSI GK5 LP;D4BEETJLMLTL 0.00 0.00 0.00 0.00 0.00 0.00 0.00 5802.86 5802.86 3. W6 D4BELTBETJLMLTL 0.00 0.00 0.00 0.00 0.00 0.00 0.00 30.85 30.85 3.1 QLZX 110 APPENDIX - IV (d) STATEMENT OF INTEREST RATE SENSITIVITY RESIDUAL MATURITY (` in crore) 29D-3- >3-6 >6-12 >1-3 >3-5 ASSETS 1-28 DAYS > 5 YEARS N-SENSITIVE TOTAL MTHS MTHS MTHS YEARS YEARS 1. CASH 0.00 0.00 0.00 0.00 0.00 0.00 0.00 353.00 353.00 2. BALANCES WITH RBI 0.00 0.00 0.00 0.00 0.00 0.00 0.00 5802.86 5802.86 3. BALANCES WITH OTHER BANKS 0.00 0.00 0.00 0.00 0.00 0.00 0.00 30.85 30.85 3.1 CURRENT ACCOUNT 0.00 0.00 0.00 0.00 0.00 0.00 0.00 30.85 30.85 3.2 MONEY AT CALL AND SHORT 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 NOTICE, TERM DEPOSITS NOTICE, TERM DEPOSITS AND OTHER 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 PLACEMENTS 4. INVESTMENTS (INCLUDING REPOS 98.94 1709.99 824.42 151.56 4231.61 5245.42 7681.86 218.88 20162.68 BUT EXCLUDING REV. REPOS 4. A OUT of WHICH HELD TO MATURITY 0.00 0.00 0.00 0.00 3578.84 5185.44 7551.61 71.06 16386.95 5. ADVANCES (PERFORMING) 3421.16 1868.27 45083.85 389.84 1013.62 537.18 979.59 1891.15 55184.66 (i) BILLS PURCHASED & DISCOUNTED 876.32 392.68 129.88 1.30 0.00 1.19 0.05 0.00 1401.42 (ii) CASH CREDITS,OVERDRAFTS & 21.25 0.70 23078.87 6.48 15.76 21.99 196.66 1891.15 25232.86 DEMAND LOANS (iii) TERM LOANS 2523.59 1474.89 21875.10 382.06 997.86 514.00 782.88 0.00 28550.38 (iv) Receivable under Agr Debt Relief 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 6. NPAs (ADVANCES ) 0.00 0.00 0.00 0.00 0.00 825.39 477.89 0.00 1303.28 7. FIXED ASSETS 0.00 0.00 0.00 0.00 0.00 0.00 0.00 231.32 231.32 8. OTHER ASSETS 0.00 0.00 0.00 0.00 0.00 0.00 0.00 990.40 990.4 (i) INTER OFFICE ADJUSTMENTS 0.00 0.00 0.00 0.00 0.00 0.00 0.00 275.13 275.13 (ii) OTHERS 0.00 0.00 0.00 0.00 0.00 0.00 0.00 715.27 715.27 9. REVERSE REPOS 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 10. SWAPS (SELL/BUY) MATURING 793.01 3629.74 1772.87 1145.70 0.00 0.00 0.00 0.00 7341.32 FORWARDS 11. BILLS REDISCOUNTED 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 12. INTEREST RECEIVABLE 0.00 334.32 432.35 0.00 0.00 0.00 0.00 0.00 766.67 13. COMMITTED LINES OF CREDIT 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 14. OTHERS (SPECIFY) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 B. TOTAL ASSETS 4313.11 7542.32 48113.49 1687.10 5245.23 6607.99 9139.34 9518.46 92167.04 C. GAP(B-A) -2211.50 -4268.72 18416.96 -10002.67 -5719.96 2174.58 6702.49 -4347.45 D. CUMULATIVE GAP -2211.50 -6480.22 11936.74 1934.07 -3785.89 -1611.31 5091.18 743.73 E. C AS % TO B -51% -57% 38% -593% -109% 33% 73% -46% F. D AS % TO B -51% -55% 20% 3% -6% -2% 6% 1% G.C AS % TO TOATL RT.SENS.ASSETS -2.68% -5.16% 22.28% -12.10% -6.92% 2.63% 8.11% -5.26% Prudential Level for Gap(Not exceed to) 35% 35% 35% 30% 30% 30% 30% 111 JGKGL7 - V ERZULTG JGKGL7-VI EI²SULTG (tkskf[ke izicU/u] lk[k uhfr ,oaoa dk;Z;Zfof/) ,oao eqe[; tkskf[ke vf/dkjh 112 APPENDIX - V Risk Concentrations within the total risk mitigants Financial Risk Mitigants Outstanding amount of Risk Mitigants (after Risk Concentration haircut)(For Fund Based & Non Fund Based % Exposures) ` in crores Cash & Bank Deposit 1579.32 33.26 Gold 7.36 0.16 LIC 4.42 0.09 NSCs, KVP, IVP 234.33 4.94 Shares and Debentures 0 0.00 Margin Money against LC / BG 2393.96 50.42 Guarrantors & Counter Parties 0 0.00 Government Securities Excluding NSC 239.51 5.04 Mutual Funds 0 0.00 Others (Bonds) 289.34 6.09 TOTAL 4748.24 100.00 APPENDIX-VI ORGANISATIONAL CHART OF INTERGRATED RISK MANAGEMENT DEPARTMENT (Risk Mgmt. Credit Policy & Procedures) & CRO 113 114 SRZVJ L PB ZL)LHLGVZT GM7IJ4ZTM>NO JRK KLU-'LLV CITY PALACE , UDAIPUR (RAJASTHAN) 115 ZT )LLKSI -7T7D4BBE GP3SI GPPGKL LTBJKJ[GSPTOV HF>)LLKSI -7T7D4E MFVRLBYID4BE WGGV F>EILKL ETSHSGV R%SWLTH-SL\LKESL;WBET\LE>-7T7D4BEWL8J2 DIELVTK .U JRKETFLQ;>ETSRZVJ L PBCMIGSG'LELTMFL*SPL;ETZL)LHLGV