DIRECTORS’ REPORT

III.CORE OPERATIONS

1. RETAIL & DIGITAL BANKING GROUP The Retail and Digital Banking Group is the largest business vertical of your Bank, constituting 94.31% of total Domestic Deposits and 58.14% of total Domestic Advances, as on 31st March, 2020. The Group comprises of eight strategic business units, which drive the largest branch network across the country. Your Bank is making continuous efforts in providing a pleasing ambience with clean and uncluttered surroundings, along with a courteous and smartly attired staff at all its branches. The ever-evolving customer preferences, especially of the younger population, coupled with an increased focus on enhanced customer convenience, are transforming the retail banking landscape. Your Bank is committed to creating an Your Bank’s affordable housing segment environment of increased risk awareness enjoys 62.30% of its total home loan Your Bank’s customer base is steadily at all levels. It also aims at constantly portfolio, while PSL (Priority Sector growing across the country, making upgrading the appropriate security Lending) stood at a significant 35.03%. Retail Banking the most prolific segment measures, including cybersecurity These important segments are anchored of your Bank, both in terms of deposit processes to ensure the mitigation by its constant thrust and efforts mobilisation as well as extending of various risks. For example, to curb on maintaining the quality of assets customised credit. Your Bank continues incidents of ATM-related frauds, your throughout the year, which has resulted in to be the largest Home Loan provider in Bank has introduced an OTP-based ATM checking the gross NPAs to remain within the country and the largest dispenser of cash withdrawal facility. planned levels. Education Loans, which demonstrates its unflinching commitment to serving A. PERSONAL BANKING Landmarks: society at large. Your Bank has now also started extending home loans, car loans 1. HOME LOANS Levels in Lakh Crore and personal loans also through its 'PSB Your Bank has added one more feather Loans in 59 Minutes' portal. into its cap by being the best and largest home loan provider in the country, which 4.56 Your Bank continues to be at the forefront has been acknowledged by Honourable in digital banking domain with a steady Union Minister of Finance, Smt. Nirmala 4.00 stream of technology-driven innovations. Sitharaman, while awarding your Bank with 3.41 It has a multi-channel delivery model, prestigious ‘FE India’s Best Banks Awards’ 2.99 which offers its customers a wide choice in home loan category during the year. 2.58 2.15 to carry out these transactions, at any Your Bank has also won the Best Home time and any place. In FY2020, your Bank Loan provider trophy in the ‘CNBC 13th has increased its offerings across various Real Estate Awards 2018-19’ event during channels – digital, mobile, ATM, internet, the year. Undoubtedly, all your Bank’s social media and branches. stakeholders are joint contributors behind Mar Mar Mar Mar Mar Mar these achievements and successes. 2015 2016 2017 2018 2019 2020 The flagship digital app for retail customers ‘YONO’ has crossed many In home loans, your Bank has continued to Home Loan Portfolio Over the Years milestones with 46+ million downloads lead the market, registering a market share FY2020 has been an eventful year with and approximately 21+ million st of 30.62% as of 31 March 2020 amongst many innovations and initiatives taken registrations till date. YONO provides a all ASCBs. The home loan business now rich “LifeStyle & Banking” experience, forward by your Bank to keep pace with forms an impressive 22.66% of your changing market’s sentiments in the with 31+ products and 40+ services, in Bank’s total domestic advances. conjunction with 5 JV partners. real estate sector across the country (excepting March 2020 due to the

| Annual Report 2019-20 40 DIRECTORS’ REPORT

unprecedented COVID-19 pandemic by ensuring the seamless delivery of under Education Loans are considered as and nation-wide stringent lockdown products and services to make home Priority Sector Advance. Your Bank takes measures): loan journey for a customer a joyful one. pride in being the largest Education Loan For example, your Bank has launched the provider in the country, with market share Repo Rate Linked Home loan - In a introduction of consolidated processing improved to 34.72% as of March, 2020, historic step towards enhancing trust of fee for home loan customers, vendor as against 30.55% as of March, 2019. home loan customers, your Bank decided verification module, to on-board all Your Bank has helped 76,572 meritorious to link its home loan interest rates to RBI’s empanelled advocates, valuers, and students to realise their dreams by Repo Rate from 1st July, 2019, which has verification agencies in one digital providing financial assistance to the tune generated a positive sentiment amongst platform, which helps in faster verification of ` 8,777 crore during the year. Out of all its stakeholders. Your Bank was the of documents and reports. This will help this, 38% of the loans were extended first bank to do so, and currently, it offers in further reducing the TAT and allow us to girl students (increased from 35% in all its home loan products linked to Repo to analyse customers’ feedbacks within March, 2019). To broaden the scope of Rate under EBLR (External Benchmark stipulated timelines. Your Bank has also Education Loans, book quality business Lending Rate) regime, both for new and introduced doorstep delivery, more FOS, and enhance customer satisfaction, your existing customers. and further strengthening of CPCs and Bank has taken the following steps: Branches. z Shortlisted a higher number of Appointment as CNA – In another top-rated premier and reputed significant development during FY2020, The home loan market is witnessing institutions taking total numbers to your Bank was the only bank in the fierce competition. Therefore, all your 187 for extending Education Loans country to be entrusted with the task of Bank’s endeavours are directed towards under the Scholar Loan scheme at CNA (Central Nodal Agency) by MoHUA making State Bank of India the ‘Choice relaxed norms and concessional (M/o Housing and Urban Affairs) for of Customers’ for home loans, with interest rates. faster settlement of PMAY (Urban) an emphasis on sustainable growth. subsidy for your Bank’s borrowers. Your Bank has 36 lakh happy home z Penetration through your Bank’s For all other banks, NHB and HUDCO loan customers and accounts, and it is Flagship product “Global Ed-vantage act as CNA, your Bank processed confident of adding many more every day. Education Loans” for studies abroad ` 1,938 crore amount of PMAY-U subsidy was improved through the extension during FY2020. 2. AUTO LOANS of Door-step services at select cities.

Tie-ups – During FY2020, your Bank tied- Your Bank helps in upgrading the living z To ensure better tracking of the loan up with the India Mortgage Guarantee standards of its customers by providing applications and faster sanctioning of Corporation (IMGC). The Corporation is auto loans at competitive rates, and loans, your Bank’s Loan Origination a joint venture between NHB, Genworth by making owning a car an affordable System (LOS) was integrated with Inc., International Finance Corporation proposition. While industry sales fell over Vidya Lakshmi Portal (VLP) of the (IFC) and Asian Development Bank 19% during the FY2020, your Bank took Government of India. (ADB). The tie-up is aimed at providing various initiatives to maintain volumes. mortgage default guarantee to your Bank To begin with, the vast product range 4. PERSONAL LOANS against default in repayment of the loan covering all types of vehicles was made Personal Loans, both secured and by a specific segment of customers. available to both existing and New to Bank (NTB) customers, through multiple unsecured, are amongst the most popular products of your Bank, making Digital Journey – SBI’s digital journey channels, such as Branches, YONO, it a leader in this market segment. Your is ever-evolving. Your Bank has been Dealers, and CLPs. State Bank of India’s Bank is aggressively catering to the instrumental in launching several digital YONO car loan comes with benefits of needs of salaried class (both government initiatives for the convenience of its 0.25% concession in rate of interest and private), pensioners and self- customers. YONO is one such ambitious to customers, which is an additional employed and other customers. Your project of your Bank, through which feature provided by your Bank. These Bank is now extending loans to salaried home loans are also being marketed have helped your Bank to grow its loan customers of other banks through SBI aggressively. Your Bank has also portfolio to reach a level of ` 72,662 st Quick Personal Loans (CLP Platform) explored various marketing opportunities crore as of 31 March, 2020, as against and Xpress Elite (Branch Channel) for home loans on social media with the ` 71,884 crore as on March, 2019. SBI’s Products. As of March, 2020, your Banks’ help of its official Facebook page, Twitter market-share in Auto Loans is at 32.93% st personal loans portfolio reached a level Handle, and other digital platforms, such as of 31 March 2020 as against 35.55% of ` 1,96,189 crore with a YTD growth as Instagram and LinkedIn. Besides, a big in FY2019, amongst All Scheduled of 27.65% (` 42,491 crore). The growth push has been given to digital marketing Commercial Banks (ASCBs). is contributed primarily by the flagship by entering into an arrangement with product Xpress Credit (` 36,508 crore - the financial aggregators and property 3. EDUCATION LOANS YTD 34.80%) and the traditional product search sites and search engines. Education is the key prerequisite for Gold Loan (` 2,179 crore - YTD 142%), besides contribution of other products. Enhancing Customer Experience – creating human capital, as it helps in Your Bank has provided loans to more Your Bank’s various activities are centred developing skilled and productive human than 20 lakh customers, amounting to around improving customer experience resources. The loans of up to ` 10 lakh

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` 90,000 crore, during FY2020, improving 6. CORPORATE AND 8. NRI BUSINESS its market share to around 33%. Your INSTITUTIONAL TIE-UPS st Bank has introduced new “Realty Gold As on 31 March 2020, your Bank has Loan” product to cater to the needs FOR SALARY PACKAGE around 37 lakh NRI Customers, who are being catered through 83 dedicated of SBI’s Home Loan customers with Your Bank has had a focused approach NRI branches in India, foreign offices Income Tax benefit such as Home Loans. towards opening salary package in 32 countries, 227 Global Banks as The Personal Loan products are now accounts for Corporates, Defence, Correspondent Banks and tie-ups with delivered through multiple channels such Railways and State Govt employees 55 exchange houses and six Banks (in the as Branches, OCAS (Bank’s website) and during FY2020 through KAMs (Key Middle-East) to facilitate remittances. YONO. Accounts Managers). These managers provide a personalised doorstep service. Your Bank is also the leader in the NRI Consumer Durable Loans for The total Salary Account customer base Banking space of India, with a market share e-Commerce Purchases: as of March, 2020 reached a level of of 22.03% (as of March 2020). The Indian 154.22 lakh, with the addition of 5.44 lakh z Online EMI: Your Bank provides EMI diaspora, spread across the globe, has new Salary Package customers during based loans for online shopping up always reposed immense trust on us. As of FY2020. to ` 1 lakh from Flipkart and Amazon March 2020, the NRI deposit base stands at portals to pre-selected customers USD 28.77 billion. on a real-time basis. 7. DIGITAL PERSONAL Your Bank has launched the following z POS EMI: Pre-selected group of SBI LOAN OFFERINGS products and services in FY2020 for Debit cardholders are empowered to While offering products on multiple NRIs: avail EMI based loans up to ` 1 lakh platforms for portfolio growth with higher for purchase of consumer goods profit margins, your Bank has kept in z Near-real time outward remittance from the approved shops. mind the customer’s convenience with facility (from NRE accounts) to Ease of Banking and offered the following 209 overseas destinations through z Checking of EMI loan eligibility by internet banking in five international sending SMS “DCEMI” to 567676 variants through YONO, currencies viz. USD, EUR, GBP, SGD introduced. and AUD with a daily ceiling of ` 10 i) PAPL (Pre-Approved Personal Loan) lakh or equivalent. 5. LIABILITY AND ii) PAXC (Pre-Approved Xpress Credit) INVESTMENT PRODUCTS z For better control and security in the iii) PAPNL (Pre-Approved Pension Loan) account, customers can lock and The overall P-Domestic CASA Deposits unlock their INB access. OTPs for of your Bank has grown from ` 9,16,442 iv) INSTA Credit Top-up for Xpress Internet Banking can be delivered crore as of March, 2019 to ` 10,15,578 Credit through registered mail ID in addition crore as of March, 2020, registering v) Insta Top-up for Pension Loan to SMS on Registered Mobile a growth of ` 99,136 crore (10.82% Number. annualised). The CASA for P-Domestic Customers can avail the offerings on portfolio is at 48.28% as of March, 2020, z SBI Tax Savings Scheme for a 24X7 basis, without any physical NRIs (NRO Deposits) up to as compared to 48.49% as of March, documentation and branch visit. 2019. ` 1.5 lakh per annum with 5-year maturity available on Internet z Checking of PAPL loan eligibility Doorstep Banking Services: by sending SMS “PAPL” to 567676 Banking, which can be used by the introduced. customers to avail Tax benefits under Your Bank introduced Doorstep Banking section 80C of Income Tax Act. Services through its Contact Centre and z Your Bank is using YONO as well Doorstep Banking Agents at 50 centres as CLP (GOI) platforms for sourcing z The minimum amount in FCNB across India. To enhance the ease of of proposals along with in-principle Premium Deposit has been reduced banking for its customers, SBI expanded sanctions. to US$ 10,000, and NRE Sukoon its doorstep services. This includes (Current Account) has been reduced essential banking services such as Cash to ` 3,000. Pick-up for credit to own account Delivery z The recharge limit has been of Cash withdrawn from own account; increased to ` 1 lakh in NRI Family Pick up of Cheque Book Requisition Card, which is the easiest and Slip; Pick up of Cheques for Collection fastest way of sending money to your / Clearing; and delivery of Statement of loved once in India, at anytime from Account and Term Deposit Advice to anywhere in the world. all individual customers. Introduction of these services are planned for 100 centres imminently.

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9. PRECIOUS METALS and Investment Officers, along with to the ‘SBI Wealth Mobile App’ enabling Wealth Service Managers and Customer investment transactions providing a best Sovereign Gold Bonds: Relationship Executives for operational in class holistic experience to clients. The Sovereign Gold Bond Scheme was roles. introduced by the Government of India During FY2020, your Bank has conducted during FY2016 to promote Digital Gold Your Bank’s Open Investment Platform, several ‘Annual Investment Conclaves’ instead of Physical Gold for the investors. with state-of-the-art technology and right at important centres. These conclaves During FY 2020, your Bank mobilised 647 selling approach based on Risk Profiling, are a well-attended and signature event, kgs (` 243.91 crore) through SGB to bring provides one of the best possible addressed by experts from the Financial the total Gold mobilised since inception experience to clients. During the year, Industry on prevalent market conditions to 5,098 kgs (value ` 1,561 crore). SBI Wealth strengthened the number of and investment opportunities. Relationship Managers at all its Wealth Gold Monetisation Scheme: Hubs, e-Wealth Centres and Global The financial year under review was To mobilise gold lying idle with household e-Wealth Centre, to acquire and service focused on building the quality of your and institutions, the Government of more clients. The e-Wealth Centres, with Bank’s Client Engagement and Service th India introduced the Gold Monetisation extended banking hours, are equipped Delivery. On the 14 January, it celebrated Scheme (GMS) during FY2016. During with transaction execution facilities over its anniversary day as ‘SBI Wealth Day’. FY2020, your Bank mobilised Gold Voice and Video calls. This is in addition amounting to 3,973 kgs, bringing the cumulative mobilisation to 13,212 kgs.

Other Gold Business: Your Bank is also a primary player in the field of Bullion Banking. It makes available Metal Gold Loan to jewellers engaged in manufacturing of gold ornaments for the domestic and export purposes. During FY2020, your Bank has extended Metal Gold Loan to Jewellers to the extent of 22,255 kgs. Your Bank is also engaged in selling Wholesale Gold to jewellers and traders. During FY2020, your Bank has sold 2,522 kgs under the “Sale of Gold’ Scheme.

10. WEALTH MANAGEMENT BUSINESS

In FY2020, SBI Wealth made deep inroads Shri Rajnish Kumar, Chairman, SBI addressing the Elite SBI Wealth Clients at the Client into the premium market segment. Your Engagement Program held at Mumbai to Celebrate ‘The Wealth of Relationships’ on the Bank’s Wealth Management Business occasion of ‘SBI Wealth Day’, commemorating the 4th Anniversary of SBI Wealth. has shown exponential growth in terms of Client Acquisition and Assets Under B. ANYTIME CHANNELS Management during the financial year. The number of clients increased by 2.4 C. As on ATMs Kiosks ADWMs Total times, from 55,502 in March, 2019 to 31st March 2016 42,733 1,231 5,760 49,724 132,354 in March, 2020 while the AUM st grew by 3.6 times, reaching ` 109,061 31 March 2017 42,222 986 6,980 50,188 crore against ` 30,270 crore during the 31st March 2018* 51,616 # 7,925 59,541 period. 31st March 2019* 50,757 # 7,658 58,415 31st March 2020* 45,285 # 13,270 58,555 Your Bank’s Wealth Management # Kiosks are scrapped and not in use * Merged Business services are delivered through 63 centres with 155 Wealth Hubs, including four e-Wealth Centres and a Global e-Wealth Centre. It added 19 new Centres and 29 new Wealth Hubs during the financial year under review. The Wealth Hubs are managed by a team of knowledgeable Relationship Managers

| Annual Report 2019-20 43 DIRECTORS’ REPORT

1. ATMS/ ADWMS 3. GREEN CHANNEL With above 168 lakh registered users, the COUNTER (GCC) mobile banking channel has processed Your Bank has one of the largest ATM transactions volume at 13.82 crore, which Networks in the world, with 58,555 Your Bank has installed GCCs at all is worth ` 9,74,434.61 crore, up to March ATMs, including Automated Deposit and its retail branches. The GCCs extend 2020. The fund transfers through digital st Withdrawal Machines (ADWMs) as on 31 services such as cash withdrawal, cash channels are now free of charge. March, 2020. In order to provide 24x7 deposit, funds transfer within State cash deposit and withdrawal facility, it Bank of India, Balance Enquiry, Green 6. SBI PAY (BHIM) has installed 13,270 ADWMs. PIN generation and PIN Change, and Mini Statement. On an average, 6 lakh Your Bank’s Unified Payments Interface Nearly, 28% of the financial transactions transactions are being routed through based app is an interoperable offering, of your Bank are routed through ATMs / GCCs per day. which provides the convenience of ADWMs. With a market share of 28.35% transferring funds across different bank (as per RBI Data) in ATM Network in India, 4. GREEN REMIT CARD (GRC) accounts using Virtual Payment Address it transacts 46.04% of the Country’s total (VPA), Bank Account Number + IFSC and ATM transactions. On an average, over GRC, especially useful for migrant scanning a QR Code. Over 824 lakh users 1.23 crore transactions per day are routed depositors, is a card through which one have registered and are availing UPI through your Bank’s ATM Network. can remit money using GCC, CDMs and services, resulting in more than 333 crore ADWMs to a specified account of State transactions, amounting to more than In order to strengthen the security of Bank of India. As a daily average, over ` 7.31 lakh crore, processed through the ATM cash withdrawals against skimming, 1 lakh transactions are being routed SBI UPI channel during the period 2019-20. cloning, theft of cards by fraudsters, through GRCs. Additionally, users have the convenience your Bank has introduced OTP Based of making bill payments, travel bookings Cash Withdrawal Facility for transactions 5. BANKING ON MOBILE and ordering food through BHIM SBI Pay above ` 10,000 between 8 PM to 8 AM making it an all-in-one UPI app. A facility w.e.f. 01st January, 2020. YONO Lite: Your Bank’s mobile banking to help donation for nobel causes such app for retail customers, YONO Lite, as PM Cares Fund during COVID-19 and With the objective to make the ATMs has a current userbase of 162 lakh and Chief Minister Relief Funds has also been more secure, your Bank has installed is now available in 9 regional languages enabled on the app. Your Bank has also Multi-Vendor Software (MVS) covering besides English. It offers facilities such as made available a hassle free and quick implementation of BIOS Password, intrabank and interbank funds transfers merchant on boarding interface through disabling USB Ports, upgraded Operating (NEFT/ RTGS/ IMPS/ UPI), the opening its branches with instant UPI QR Code System, EMV Card Readers, and anti- of fixed deposits, e-MOD Accounts, and facility. Over 3 lakh merchants were skimming devices, amongst other software. add or manage beneficiaries, amongst successfully allotted UPI QR Codes in the others. Additional value-added services last quarter of the FY2020. For ensuring safety of ATMs as well as such as Aadhaar linking, e-statement the customers, coverage under electronic subscription / download, stop/revoke Large multinational corporations such as surveillance is being enhanced. Your cheque instructions, and facility to submit Google and WhatsApp, amongst others Bank has covered around 15,000 ATMs Form 15G/ 15H online for TDS exemption have implemented digital payments under e-Surveillance and eventually all and a host of other features are also bandwagon to help achieve a Less Cash ATMs are expected to be covered under available. YONO Cash, a unique card- India. State Bank of India has partnered e-Surveillance. less cash withdrawal feature is available with Google India to offer UPI services to for an enhanced customer experience the users of their App – Google Pay under 2. SWAYAMS: BARCODE without threat of loss of ATM or debit the UPI Multi-Bank Integration Model. card. The customers can now open PPF BASED PASSBOOK Consequently, over 662 lakh Google Pay account online through this app. users have linked their Bank accounts PRINTING KIOSKS with their @OKSBI handle till 31st March, SBI Anywhere Corporate: Your Bank’s Your Bank has installed around 3,700 2020. mobile banking app for proprietorship SWAYAMs (Barcode Based Passbook firms allows businesses to transfer funds Printing Kiosks) during FY2020, taking across banks, open and operate fixed the total number of SWAYAMs deployed deposit accounts, payment to EPFO, to 17,480. Using these kiosks, the view account statements, schedule customers can print their own passbooks transactions, and Recharge/bill payment using barcode technology. More than facilities, amongst others. Furthermore, 3.80 crore transactions per month are it facilitates large corporate firms with taking place on these SWAYAM kiosks. multiple users to operate accounts, Additionally, your Bank has also deployed transfer funds through NEFT/ RTGS, “Through the Wall” SWAYAM Kiosks, make bill payments/supplier payments, offering extended working hours for authorise e-cheques /e-STDR, open and passbook printing. operate fixed deposit accounts, amongst others.

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FY2019 to 341 in FY2020. Moreover, your million in FY2019). The App’s rating Performance Highlights Bank has added three new channels to on Android is at 4.09 and 2.8 on iOS. User Base (in Cr.) the bouquet of online payment offerings – z Customer Onboarding: Your Bank Cheque and Transfer channel, Paytm and observed significant momentum direct integration with INB of COSMOS on new customer on-boarding with Bank, Axis Bank and ICICI Corporate ~21,000 digital accounts opened Bank amongst others. Your Bank has per day, which was over 65% of also integrated with common portal for all eligible accounts being opened Recruitment/Conference/Universities by your Bank. Approximately, 43.5 and TSPs. This has resulted in a 58% lakh Digital Accounts were opened YoY growth in FY 2019-20 in number of during the FY2020 (71.43 lakh since transactions. SBIePay has achieved a 9.53 launch). Around `7,859 crore was revenue of ` 60.70 crore in FY2020, YoY 5.53 mobilised through savings bank 1.85 growth of 22% over FY2019. 0.22 accounts opened through YONO. Mar Mar Mar Mar Approximately, 90% branches are 2017 2018 2019 2020 7. DIGITAL BANKING now YONO activated (minimum one The digital payments landscape in India account opened through YONO). Volume (in Cr.) is evolving at a rapid rate, and your Bank z Digital lending: YONO is the fastest is playing an effective role in building growing and a major channel for momentum for the digitalisation of the personal loans. The year saw `9,694 Indian economy. In sync with the focus of crore worth of PAPL disbursements the Government of India to create a ‘less- with ~7.34 lakh loans disbursed cash’ economy, your Bank has expanded (cumulative disbursement `13,797 its digital footprint across the country. crore). Your Bank executed around 332.66 `638crore worth of financial sanction YONO: The flagship digital app for retail for car loans. The income generated th 129.03 customers ‘YONO’ was launched on 24 for your Bank was approximately 0.43 20.93 November, 2017, and since then, YONO ` 830 crore. The effective home loan has crossed many milestones. YONO lead conversion of your Bank during Mar Mar Mar Mar provides both “LifeStyle & Banking” 2017 2018 2019 2020 FY2020 is about 9% against that of experience with more than 31 products, around 2% as of March, 2019. and over 40 services of 5 JV partners Value (in Cr.) (SBI Life Insurance, SBI Card, SBICAP z Online marketplace: Over 80 Securities, SBI General Insurance and merchant partners are live on the SBI Mutual Fund) live on its Financial B2C marketplace platform across 21 Superstore. It also offers over 80 categories, witnessing about `320 merchant partners live on the B2C Market crore of GMV (6 times growth over Place platform across 21 categories. FY2019).

z Cross-selling: The non-banking During FY2020, your Bank has achieved 732342 financial services product suite, significant momentum in the adoption including insurance and mutual of YONO with higher engagement and funds, are achieving all-time highs 296675 growth in business through the YONO 1066 36773 on a monthly basis. The bank earned app. an overall commission income of Mar Mar Mar Mar approximately `19 crore through 2017 2018 2019 2020 Key Performance Highlights of YONO YONO in FY2020. Nearly 1.6 lakh as on March 2020 are as follows : SBI credit cards were sourced SBIePay – Your Bank’s Payment z App Adoption: There has been an during the year through YONO. The Aggregator increase in the daily registrations Gross SBIMF investments stood at `600 crore. Around `10.19 crore of SBIePay, started in March 2014, is the from an average of 15,000 per day Life Insurance premium and nearly first and only bank-based payment to 70,000 per day towards the end `13.75 crore of General Insurance aggregator in India. In its essence, of FY2020. The total numbers of premium were achieved during the SBIePay is a platform for merchants to registered users grew from 7.75 financial year under review. acquire a bank agnostic large customer million to 21.2 million by March, 2020. YONO has achieved ~46.4 million base and provides a bouquet of online z ‘YONO Cash’: Cardless and st payment options to the merchant’s online downloads as on 31 March, 2020. paperless withdrawals at ‘YONO customers. During FY2019, SBIePay has z User Engagement: The daily cash Points’ (ATM) were launched witnessed exceptional growth, as a result active user base on YONO peaked across Pan India in March, 2019. of an increase in the number of merchants to 6 million logins per day, with Approximately 8.8 million YONO onboarded, which rose from 225 in an average of 3 million (average 1 Cash transactions were carried out

| Annual Report 2019-20 45 DIRECTORS’ REPORT

during the year with a maximum of cash to digital transactions used by Smart City: Your Bank has a dedicated of 1.94 lakh transactions in a day. the card holders improved from 21.99% team to capture the payment ecosystem The innovative YONO Cash feature to 38.10%. The highest one day spends in the 100 identified Smart-Cities in provides cardless, fast, convenient at PoS and e-Commerce of ` 1,208 crore India. The plan is to foray into the transit and safe cash withdrawal facility was achieved on Dhanteras (25th October, solution/ integrated ticketing solution for at nearly 2,97,369 customer 2019). ‘One City One Card’, which is a payment touchpoints across the country initiative for the Smart Cities. (ATMs – 56,384; POS – 1,93,556; Additionally, your Bank has launched CSP – 47,429). various innovations and functionalities Metro and Transit Projects: Your Bank around debit cards, such as the launch has implemented an end-to-end ticketing z YONO Krishi: YONO Krishi platform of NCMC compliant RuPay Card, RuPay solution for the Nagpur Metro Project envisioned to be the digital partner in JCB (for international conveniences), using the National Common Mobility our farmers progress was launched usage of RuPay Card in Bhutan, the Card (NCMC) specifications based RuPay in July, 2019. Four Key offerings on launch of MasterCard World for premier Prepaid Card. This is your Bank’s second YONO Krishi are Khata, Bachat, customers. In co-branded debit card, project, after successful implementation Mitra and Mandi sections .Khata your Bank has launched SBI IOCL Co- of ticketing solution for the Noida Metro section caters to Agriculture credit branded Debit Card for digitising fuel project. State Bank of India has also been solutions like Agri Gold Loans with transactions and tied up with Madurai awarded the Hyderabad metro project for 24 X 7 online application availability. Kamaraj University for launching Co- implementation of Open Loop Automatic Bachat is the Financial Super store branded Combo Debit Card. Fare Collection System based on the for farmers investment & insurance NCMC card specifications. needs .Mitra provides best Agro Your Bank’s topmost priority is to Advisory services at click of a button ensure safety of its customers using SBI FASTags: Your Bank has issued more .Mandi is the online market place for Debit cards. To this end, your Bank has than 15 lakh SBI FASTags to customers. purchasing agricultural inputs & farm provided switch on and off facility for Consequently, toll transactions through equipments .YONO Krishi has been enabling and disabling the international, SBI FASTags have crossed 441 lakh awarded as one of the best innovation domestic, ATM, PoS and e-commerce with a total transaction amount of over ` in top banks category by Business transactions through Internet Banking, 722 crore as on 31st March, 2020 during Today. YONO Krishi is now available YONO, YONO Lite and SBI Quick App, FY2020. State Bank of India has put on in 10 regional languages in addition amongst others. board State Road Transport Corporations to English and Hindi. Over 4.78 lakhs in Uttar Pradesh, Punjab, Uttarakhand, Agri Gold Loans (Rs 5,944 Crore) These initiatives made State Bank of Odisha, Tamil Nadu, Karnataka, and West were sanctioned through YONO India, a market leader in terms of share Bengal for FASTag services. Krishi since its launch. Launched in debit card spends, which is at a high to meet the banking and beyond of 29.42% as at 31th March, 2020. With Merchant Acquisition: The digital banking needs of the farmer (across approximately 27.81 crore actively used payments landscape in India is evolving agri inputs, insurance, investments, debit cards as on 31st March, 2020, your at a rapid rate, and your Bank is playing advisory services, amongst others), Bank continues to lead in debit card an effective role in building momentum it has ~ 56% branches activated for issuance in the country. for transforming India through the YONO Krishi Gold Loans. Customer digitalisation of the economy. In sync visits on YONO krishi was at ~ 40.59 State Bank Foreign Travel Card: The with the focus of the Government of lakhs, ~4.7 lakhs on Mitra Section State Bank Foreign Travel Card (SBFTC), India to create a less-cash economy, and ~6.1 lakhs on Mandi section. is a chip-based EMV compliant prepaid your Bank has expanded digital payment The key products in the pipeline are card providing safety, security, and acceptance infrastructure across the KCC application, KCC renewal and convenience to outbound travellers (valid length and breadth of the country. Your Pre-approved Agricultural loans. worldwide except in India, Nepal and Bank continued to expand its digital Bhutan). footprint across the country and deployed During FY2020, YONO has achieved 6.73 lakh PoS terminals, 3.33 lakh Bharat an overall growth of 2.6 times on the On VISA, it is available as single currency QR code and onboarded 9.53 lakh liabilities side (Digital accounts increased card in eight currencies – US Dollar, merchants on BHIM-Aadhaar-SBI. In from 27 lakh to 70 lakh), 2.8 times growth British Pound Sterling, Euro, Canadian total, the number of merchant payment on the assets side (Digital lending book Dollar, Australian Dollar, Japanese Yen, acceptance touchpoints crossed 19.59 size increased from 3,400 crore to 9,600 Saudi Arab Riyal, and Singapore Dollar. lakh as on 31st March, 2020. Your Bank has crore ) and 7 times growth in Commission On MasterCard, it is available as a acquired nearly 60 crore transactions as income ( ` 2.7 crore to ` 19 crore) earned multicurrency card in seven currencies on 31st March, 2020 with 10% increase on through the cross-selling of JV products. – US Dollar, British Pound Sterling, YoY basis. In addition to offering essential Euro, Canadian Dollar, Australian Dollar, acquiring services, your Bank is also Debit Card: Your Bank has focused Singapore Dollar, and UAE Dirham. providing other services such as: on shifting the usage of debit cards Your Bank also has corporate variants by customers from ATMs (for cash z NFC acceptance on PoS terminals of SBFTC to cater to varying needs of withdrawals) to PoS terminals and corporate customers. z DCC-Dynamic Currency Conversion e-Commerce websites. The percentage

| Annual Report 2019-20 46 DIRECTORS’ REPORT

z EMI and their families in case of any 9. INTERNET BANKING unfortunate exigencies. State Bank z Cash@POS AND E-COMMERCE of India takes pride that since the z Electronic Toll Collection on National inception of its life insurance business, Your Bank’s flagship digital portal ‘Onlinesbi’ Highways it has helped nearly 1.45 lakh families by continues its forward journey with the honouring timely death claims. Similarly, current user base of over 735 lakhs is now z YONO Cash and Sale Facility SBI General has settled claims of ` 35 available in 8 regional languages, apart from crore within a record time during Cyclone English and Hindi. The channel recorded a Your Bank continued the efforts to Fani in Odisha. transaction volume of over 158 crore valued at onboard merchants from premium ` 1,33,62,855 crore during the year. Your segments such as OMCs, retail chains, In light of changing investment preference ‘Onlinesbi’ retains its premier position and lifestyle stores, and holiday resorts of its customers, your Bank is offering wider acceptability amongst large corporate apart from consolidating the existing need-based financial products of SBIMF houses doing high value transactions. This business. Your Bank has tied up with such as Systematic Investment Plans, channel is being continuously upgraded significant Corporates and Government Systematic Withdrawal Plan, Debt, Equity with state-of-art security features and Departments to migrate their operations and Liquid Funds, amongst others to all functionalities to bring bank and shop both from cash to digital mode. This involves its customers across the country. Your at your fingertips. the customisation and integration of its Bank is maintaining the topmost position systems with those of corporate and in terms of number of SIPs (22.5 lakh C. SMALL AND MEDIUM Government departments, to ensure SIPs) and Book Value (` 417 crore). seamless flow of digital transactions. ENTERPRISES With the increasing trend in the use of Your Bank is a pioneer and market leader Your Bank has also initiated the development plastic money, your Bank is meeting the in SME financing. With over 10 lakh of acceptance infrastructure for NCMC demand of the customers and making customers, the SME portfolio of ` 2,67,614 (National Common Mobility Card) on its credit cards available to them at the crore, as on 31st March, 2020 accounts PoS terminals to push the government remotest of the locations and sourced for nearly 11.05% of your Bank’s total initiative of ‘One Nation One Card’. more than a million cards in FY2020. advances. State Bank of India has always National Pension System (NPS) is a held SMEs as an important segment, 8. CUSTOMER VALUE government scheme aimed at having a considering the role being played by them ENHANCEMENT stable source of income post-retirement. in the Indian economy in terms of their Your Bank, through its widespread branch contribution to manufacturing output, Your Bank is focused on enhancing network, is opening NPS accounts and exports and employment generation. the value for its customers and all continues to be the number 1 player with Being committed to providing Simple stakeholders by delivering multiple a total of 2.23 lakh (excluding staff) NPS and Innovative Financial Solutions, your financial solutions under one roof. As a Accounts. Bank’s approach in driving SME growth financial superstore, your Bank offers rests on the following three pillars: financial products such as Mutual Funds, With a focus on better customer General Insurance, Life Insurance, Credit experience and need-based selling, your a) Customer Convenience, Cards, National Pension System and Bank continues to be a leader in the b) Risk Mitigation, Demat Accounts through its branch marketing of all these financial products network spread across the length and and has earned revenue of ` 2,030.35 c) Technology-based digital offerings breadth of the country. crore in FY2020. The revenue contribution and process improvements of each subsidiary is as under: Your Bank has embarked on the path of Digital Journey for on-boarding of (` in crore) customers for the sale of third-party JVs FY2018-19 FY 2019-20 %Change YOY products. Digitalisation has strengthened need-based selling and improved SBI LIFE 951.9 1117.65 17% customers stickiness. In the case of SBI MF 502.61 376.45 -25%* SBIMF and SBI Life 100% and 98% of the sales, respectively, are done digitally. SBI GENERAL 270.86 314.53 16% The persistency level of Banca Assurance has improved from 81% in FY2019 to 83% SBI CARDS 191.69 211.95 11% in FY2020. Your Bank has increased its SSL 6.7 4.74 -29%** focus on the protection business and NPS 4.11 5.03 22% have seen improvement in protection share. TOTAL 1926.87 2030.35 5%

The most pivotal role of the insurance * In respect to SBIMF: Negative YoY growth in revenue is on account of regulatory changes in the business is to provide financial payment of brokerage. sustainability to your Bank’s customers ** Revenue for SBI Cap Sec Ltd. (SSL): Negative YoY growth in revenue is due to lukewarm demand with respect to Demat accounts.

| Annual Report 2019-20 47 DIRECTORS’ REPORT

1. CUSTOMER are processed through LOS and LLMS for In line with the thrust on addressing the CONVENIENCE loans of all sizes. liquidity issues of MSMEs and to facilitate smooth operations, the following To build and sustain the momentum for Contactless Lending Platform products were launched: transforming India, your Bank has created Your Bank is one of the stakeholder’s the highest number of touchpoints in of SIDBI led PSB consortium and a) SLC for MSMEs: terms of branches and other modes. To your Bank’s path-breaking initiative, Your Bank has launched a new product enhance ease of business for the Small psbloanin59minutes.com. This portal ‘Standby Line of Credit’ for MSMEs and Medium Enterprises, your Bank has provides easy access for loans to SMEs having Limits up to ` 5 crore to meet modified its existing delivery model of registered on the GST and income tax temporary liquidity mismatch arising out Small and Medium Enterprises Centre filing platforms. Under this umbrella, your of the delayed realisation of receivables, (SMEC) and created Asset Management Bank is sourcing leads from ` 1,00,000 to receipts of GST Inputs tax credits Teams (AMTs) to maintain an integrated ` 500 lakh. In FY2020, a total of 15,550 (including for Exports) and other Business relationship with the customers for loans in-principle approved leads have been requirements. up to ` 50 lakh. The SMECs have also generated by the portal, out of which been strengthened in terms of workforce, 10,243 leads for ` 3,837 has been b) SME Assist: which has resulted in improvement in the sanctioned. service levels. Your Bank has also restored ‘SME Assist’ product to address the issues of the e-Mudra: units facing liquidity constraints, wherein 2. DIGITAL OFFERINGS Your Bank developed this web application WCDL loan is granted against the pending For ensuring Ease of Banking, your Bank to facilitate appraisals, sanctions, and input tax credit claims (GST). is leveraging technology in every aspect disbursals of loans up to ` 50,000, while of the value proposition from designing seamlessly complying with all norms of Competitive Rates of Interest the Mudra loan (Shishu Category). It also products and streamlining processes, Your Bank has linked all floating rate loans reduces TAT, smoothens the loan process to improving delivery and monitoring. to Micro, Small and Medium Enterprises and enhances customer experience. Furthermore, it has taken several (MSMEs) to External Benchmark w.e.f 1st For FY2020, 40,555 loans have been initiatives to build its SME portfolio in a October, 2019. sanctioned and disbursed through risk mitigated manner. e-Mudra with an aggregate amount of st PAML (Pre-Approved Merchant Loan) Loan Life-Cycle Management ` 194.24 crore as on 31 March, 2020. Your Bank has designed an end-to-end Apply Loan Online and Online Lead Digitalisation of Services for borrowers: digital pre-approved loan offer for its Status: Your Bank is hosting an online Current Account customers, who have a To facilitate hassle-free submission of loan application and tracking facility linked SBI PoS terminal. The loan journey financials and other statements, your Bank for MSME borrowers on the corporate is through CINB (Corporate Internet has made this service available through its website. A CRM ID is generated against Banking) platform. Through CINB, Corporate Internet Banking Platform. the customer’s loan application submitted customers will be able to avail overdraft online or offline by Customer Relationship facility in their Current Accounts within a Co-origination of Loans Management (CRM) application, which few clicks. will be sent to a customer’s mobile The Reserve Bank of India issued number. The customer can track his or guidelines for the co-origination of loans SBI and QCI sign MoU on Zero Defect her loan application through their CRM ID by banks and non-banking financial Zero Effect (ZED) Certification for and mobile number on the online portal, companies, or NBFCs, to priority sectors. MSMEs: Your Bank is the first Bank to after a successful OTP validation. Under the guidelines, your Bank has sign a Memorandum of Understanding already entered into tie-ups with four (MoU) with Quality Council of India on the Customer Relationship Management (CRM): NBFCs and started booking business. Zero Defect Zero Effect (ZED) Certification Your Bank has introduced an integrated Scheme of Ministry of MSME. Under this CRM platform to engage with customers Project Vivek MoU, your Bank is offering concessions throughout their lifecycle, to enhance Project Vivek heralded a paradigm shift in Pricing/processing charges for MSMEs understanding of customer’s requirements in your Bank’s appraisal system from having better ZED ratings. and to strengthen the customer-centric traditional balance sheet based funding, approach of your Bank. The CRM portal has to a more objective appraisal system Trade Receivables Discounting System been designed to generate leads through using cash-flow healthiness and other (TReDS) various channels, improve lead cultivation information sources. It is a promising at multiple stages and enhance business State Bank of India was the first among initiative launched by State Bank of India prospects by lowering TAT through a better all PSBs to register as a financier on the to implement a new Credit Underwriting customer connect. TReDS platform. The TReDS platforms Engine (CUE) for the SME segment, are set up to facilitate finance to MSME thereby bringing objectivity in better risk Loan Origination Software (LOS-SME) Sellers who are registered in the TReDS assessment. Moreover, it reduces TAT, and Loan Life Cycle Management System platforms. Your Bank now has its presence resulting in better customer experience. (LLMS): To adopt uniform standards of on all the three TReDS platforms (RXIL, M1 In FY2020, a total of 33,618 proposals credit dispensation for ensuring quality Exchange and A. TReDS) in the country. were processed under Project Vivek. and preserving corporate memory, loans Your Bank was actively participating in

| Annual Report 2019-20 48 DIRECTORS’ REPORT

the online bidding of the Bills/ Invoices of the MSME Sellers, which are accepted by the Corporate Buyers, on the platform and was offering very competitive rates for the benefit of MSMEs. In FY2020, Bills of MSMEs aggregating to ` 282.65 crore were discounted.

Supply Chain Finance Leveraging its state-of-the-art technology and branch network, your Bank continues to be a major player in Supply Chain Finance by strengthening its relationship with the corporate world, across various sectors. Your Bank has extended supply chain finance to over 27,500 dealers and more than 12,300 vendors with total sanctioned limits of over ` 40,130 crore.

During FY2020, your Bank has initiated 37 new tie-ups including corporates such as OPPO Mobile, Bosch Limited, Hero Electric, ITC Limited, Dabur Limited, International Tractors Limited, Ultra Tech Cement, Jindal Stainless Hisar Limited, amongst others. New e-DFS limits of ` 4,123 crore were sanctioned to 4,317 dealers up to 31st March, 2020. SBI takes pride To ring-fence the supply chain portfolio, in empowering your Bank has put in place suitable risk SME exporters in India mitigation measures and risk-based through its various products. pricing for the Supply Chain Portfolio. UNLEASH THE

TRUE POTENTIAL Product O erings for Exporters: 3. BUSINESS PARTNERSHIPS SBI Exporters’ Gold Card Scheme AND TIE-UPS OF YOUR EXPORT Pre-shipment Finance in Rupee & Foreign Currency - EPC (Rupee) Your Bank is expanding its portfolio BUSINESS WITH US. - PCFC (USD, GBP, EUR & JPY) of Warehouse Receipt Finance and Post-shipment Finance Supply Chain Finance through business - Negotiation / Purchase / Discounting of Bills (Rupee) partnerships and tie-ups with collateral - Export Bill Re-discounting (USD, GBP, EUR & JPY) managers and industry majors. Foreign Currency Loans ~ FCNR(B) – DL/TL Hedging Warehouse Receipt Finance: Digital O erings: yono Business, E-Forex and E-Trade Your Bank has introduced the Warehouse For details, log on to: www.sbi.co.in or Receipt Financing scheme (WHR) to call 1800 11 22 11 / 1800 425 3800 Follow us on extend finance to traders, owners of *T&C apply. goods and manufacturers for processing. Financing is provided against Warehouse 4. RISK MITIGATION of Pradhan Mantri Mudra Yojana and Receipts issued by collateral managers has disbursed ` 34,977 crore as on 31st having a tie-up with the Bank. Further, Your Bank has increasingly been shifting March, 2020 under PMMY, against a WHR issued by Central Warehousing its focus towards Risk Mitigated Products, target of ` 35,700 crore. Corporation (CWC) and State which include Asset-Backed Loans, Warehousing Corporation (SWC) would Bills Discounting facility, and CGTMSE/ Credit Flow to Micro and Small also be eligible for WHR finance. Your CGFMU covered loans, amongst others. Enterprises under CGTMSE: Bank has also tied up with repositories Your Bank was a pioneer in supporting NERL and CCRL for financing against Pradhan Mantri Mudra Yojana: MSMEs and Micro and Small business, by e-NWR and NEML (subsidiary of NCDEX) In line with the initiatives of the Government extending collateral-free lending up to ` 2 for e-auctioning of NPA and stresses of India, your Bank has laid considerable crore under the guarantee of CGTMSE. accounts under the WHR financed . emphasis on extending credit facilities Your Bank has a portfolio of ` 9,115 crore to eligible units under different variants under CGTMSE as on 31st March, 2020.

| Annual Report 2019-20 49 DIRECTORS’ REPORT

D. RURAL BANKING Your Bank has already implemented the 49.29 crore transactions amounting Retail Asset Credit Centres (RACCs) for to `2,27,469 crore up to 31.03.2020, 1. AGRI BUSINESS centralised sanction of loan proposals in translating to more than 18 lakh Rural and Semi Urban (RUSU) branches. transactions per day on an average. Currently, your Bank is serving more than Moreover, implementation of FI&MM 1.42 crore farmers through its various network to improve credit delivery in Under the flagship Pradhan Mantri Jan Agri advances products. the RUSU branches is currently under Dhan Yojana (PMJDY) of Government of progress. The digitalisation of Agri India, your Bank has paved the way for The focus of your Bank is now on building products will help your Bank to get more universal financial access by being a investment Credit Portfolio, comprising business from the existing customer base. pioneer in implementing the programme. of loans for agricultural activities such as Your Bank has launched ‘YONO-KRISHI’ Your Bank has opened 12.05 crore Dairy, Poultry, Fisheries, amongst others, mobile app for sanctioning of Agri Gold accounts by 31.03.2020 and issued 11.28 in order to help farmers generate their Loans. The utility for new KCC loans and crore RuPay debit cards to the eligible daily cash flow. The Government of India new dairy loans through the link ‘SAFAL’ customers. These initiatives taken under has also extended the interest subvention in YONO-Krishi is under development. financial inclusion as part of key economic facility to farmers for activities related to policy agenda of the Government over Animal Husbandry and Fisheries. Your Bank has already sanctioned more the last decade, have ensured access to than 4.70 lakh Agri Gold loans amounting Bank accounts for the excluded persons. The Ground level Credit disbursement to to about ` 6,000 crore through YONO- the farmers over the years is as follows: To fulfil the needs of Social Security measures, low cost Micro insurance (` in crore) products (PMJJBY, PMSBY) and pension FLOW OF CREDIT TO AGRICULTURE schemes (APY) are provided to the YEAR TARGET DISBURSEMENT % ACHIEVEMENT unorganised sector in a big way, covering around 5 crore customers. FY2016 89,781 1,02,423 114% FY2017 95,168 1,25,270 132% No. of PMJDY Accounts FY2018 1,05,741 1,66,819 158% FY2019 1,16,315 1,56,385 134% SBI FY2020 1,27,947 1,77,473 139% Other PSBs 40% 2. MICRO CREDIT Krishi platform. More than 12,000 clicks (SHG-BANK LINKAGE) per day are being registered in Mandi & Mitra portal of the YONO-Krishi app. SBI Your Bank is catering to more than is focusing on migrating all its Agri Gold 1.32 crore Self Help Group (SHG) loans to the YONO platform. members through the SHG-Bank linkage programme, of which more than 1.17 4. FINANCIAL INCLUSION (FI) crore members are women. Your Bank is continuously in touch with NRLM Your Bank realises the role it must play and SRLM agencies in various states to as the largest Bank in the country in increase the coverage of SHGs. practicing and promoting FI activities. The 60% spread of digital banking channels and Your Bank has been active in buying expansion of Business Correspondents pools of Agricultural assets from (BC) network is giving your Bank the Deposits Accounts (PMJDY) MFIs and NBFCs. The number of pool impetus to further grow its FI activities. Thus, to achieve inclusive development purchases during FY2020 has been about SBI and growth, your Bank has worked out 28, aggregating to about ` 9,600 crore, Other PSBs reaching out to 38 lakh beneficiaries. strategies and leveraged technology to 31% expand financial services to the door 3. OTHER INITIATIVES steps of the unbanked with the purpose of bringing them under the ambit of Kisan Melas and Kisan Milans are formal banking system. being organised regularly for felicitating loyal and regular borrowers, and for Your Bank has 61,102 operating BCs and strengthening “Bonding with Farmers” 22,141 branches across the country to and financing new farmers. Your Bank offer banking services. The BC channel, has organised four highly participated which provides customers in unbanked national level Kisan Melas during the areas an access to various banking current financial year. products and services while reducing 69% footfalls in the branches, has recorded

| Annual Report 2019-20 50 DIRECTORS’ REPORT

have been developed for loans under Co- Chief Manager (FI) at the DSH will No of Rupay cards issued (PMJDY) origination model. An end to end digitized take complete ownership of the model has also been developed for loans CSP network and FI business of SBI up to `1.00 lakh under this model wherein both FI&MM and R&DB branches Other PSBs 46% more than 11000 accounts have been in the District(s). Operational and sanctioned since October 2019. administrative matters will be handled at the RBO level. The RACCs Similarly, other NBFCs/ BCs are also being will be co-located with the DSH as onboarded under Business Associate independent units. model and an end to end digitized process (b) Regional Business Office (RBO): is expected to be launched very soon for The RBO in the FI&MM network this model also.” would control 3-4 DSHs, that is, 100-125 branches. The RBO will be F. STRATEGY strengthened adequately in terms of Several strategic initiatives have been manpower for effective oversight of 54% taken up for transforming the vision of the larger number of branches. the Top Management into reality aimed (c) GM’s Office at the Network level: at enhancing value for Customers, Imparting Financial Literacy The FI Network will carry the Shareholders and Employees. Few of the entire responsibility of Business With the objective of imparting financial projects taken up by CSO during the year Correspondents, CSPs and literacy and facilitating effective use of include: complete FI business of the Circle. A financial services, your Bank has set up General Manager will head the Circle around 341 Financial Literacy Centres (i) Structural Changes – Creation of except in Circles of Bhubaneshwar (FLCs) across the country. In FY 2019- FI&MM Vertical and North-East where it will be led by 2020, a total of 29,995 financial literacy DGM (FI&MM). A separate dedicated camps were conducted by these FLCs Financial Inclusion is a national priority of the Government as it is an enabler for structure has been proposed for across the country where 16.82 lakh Mumbai Metro Circle. people participated. As a part of the inclusive growth. It provides an avenue pilot project implemented by RBI, your to the poor for bringing their savings into the formal financial system, an avenue to (ii) Revamping of Anytime Channel Bank has set up 15 Centres for Financial - creation of separate vertical Literacy (CFL) at Block level, five each in remit money to their families in villages the state of Maharashtra, Chhattisgarh besides taking them out of the clutches A separate Anytime Channel Vertical has and Telangana in association with NGOs of unscrupulous money lenders. To give been created to minimise ATM downtime identified by RBI. more focus to Financial Inclusion, Bank and enhance the customer experience. has planned for the creation of a separate Presently the Circle functionaries and RSETIs are acting as social change agents, Financial Inclusion & Micro Market Branches are involved in the day to day empowering rural youth in achieving (FI&MM) vertical, which is slated for Pan activities of Anytime Channels. Creation India (excluding Thiruvananthapuram of this vertical will help the Circle sustainable livelihood through skill st development & training and helping them circle) rollout on 1 June, 2020 after a functionaries in concentrating on driving to establish their own micro enterprises, successful pilot in the Chandigarh Circle. the core business through branches thereby creating rural employment and The vertical will be headed by DMD by freeing them from maintaining the wealth creation. Your Bank has set up (FI&MM) who will be supported by CGM uptime and any responsibility of ATMs, 152 RSETIs spread across 26 states and (ABU), CGM (FI&MM), CGM (Operations), Recyclers, Swayam, Passbook Printers, 3 union territories. 152nd RSETI was set FI&MM and GM (NBFC Alliances). The GCC, amongst others except cash- up at Kargil in Union Territory of Ladakh creation of FI&MM Networks within the related activity of on-site ATMs. Branches during this year. These 152 RSETIs have Circles would involve setting up of the would, therefore, be freed from routine trained 93009 candidates in FY 2020. following establishments: non-operational maintenance issues and Your Bank has been adjudged as the focus on business development. Various Best Performing Bank in implementation (a) District Sales Hub (DSH): DSH technology enablers are being developed of RSETI initiative by the Ministry of Rural under Regional Manager (RBO), for enabling this. Development (MoRD), Govt of India on FI&MM has been created to primarily 19th December 2019. concentrate on marketing and Presently the Pilot is being run at sales liaison with the local district Chandigarh and Jaipur Circles and will be administration. A DSH will typically rolled out in all Circles. E. NBFC ALLIANCES cover about 30 branches in a district “Your Bank has created NBFC Alliances or 2-3 districts. DSH will primarily be (iii) Centralised Complaint Department in October 2018. The a marketing and sales unit, having a Resolution Centre at LHOs Department is holding discussions with Chief Manager (Branch Channel) and various NBFC-ND-SIs for loans under Co- will provide support to the branches To take care of the customers’ ever- origination model. 7 NBFCs have already in business development efforts increasing needs and to ensure better been onboarded. Specific new products and NPA containment. Similarly, a customer service, it is necessary to

| Annual Report 2019-20 51 DIRECTORS’ REPORT

handle customer complaints properly. (vii) Market Share improvement plan Mantri Shram Mandhan Yojna, and For this, your Bank has created a at Metros Pradhan Mantri Kisan Mandhan Yojna. Centralised Complaint Resolution To increase its low market share in Centre (CCRC) at LHOs for handling all Government Turnover and Commission Metros, your Bank had conducted a branch-related complaints of the Circle, Pilot study at Mumbai Metro, and the ( crore) obtaining feedback on the resolution ` Circle has successfully implemented of complaints and reopening of closed Particulars FY 2019 FY 2020 the suggestions for improvements. complaints based on such feedback, Turnover 57,47,997 52,62,643 To carry forward this initiative, your contacting customer before the closure Bank is conducting a study to suggest Commission 3,974 3,742 of complaints and making it mandatory recommendations for improvement to record the confirmation of such call in market share in five other Metro Your Bank is an active stakeholder in in CRM-CMS, sending interim replies to markets, namely Delhi NCR, Bengaluru, the Government’s latest initiatives and customers and sending updates during Hyderabad, Chennai, and Kolkata. is continuously engaged in developing various stages of resolution. customised technology solutions such G. GOVERNMENT BUSINESS as e-Tendering, e-BG, e-Trade, amongst All complaints will be centrally marked to others. Following initiatives were this Centre by the CRM for resolution. This Your Bank is the market leader in implemented during the year: will ensure the release of bandwidth at Government Business. It has traditionally branches and RBOs for providing better been the banker of choice to the Customer Service and business. The 1. GEM (GOVT. Government of India (GOI) and is an E-MARKETPLACE) quality of resolution will be standardised, accredited banker to major Central monitored and analysed to avoid repeat Government Ministries and Departments. Your Bank is the pioneer amongst banks complaints on the same issue and ensure SBI is contributing significantly towards for the financial integration of payments customer satisfaction. This has been e-governance initiatives taken by the GOI, to suppliers for procurement of everyday already implemented in Delhi Circle and and is instrumental in the development of goods and services through GeM portal. being implemented in 7 other Circles. e-Solutions for both Central and State GeM Pool accounts of five states and 105 Governments. This has facilitated their autonomous bodies have been opened (iv) Uniform Layout of Branches transition to the online mode, providing with your Bank. Improvement in the Branch Ambience greater efficiency and transparency, to enhance customer interactions and resulting in ease of doing business and 2. E-TENDERING experience at touchpoints. Presently, relaxation of living for the citizens. 1,476 metro and urban branches have 12 State Governments have been already competed. Your Bank is actively engaged in the provided with the product by integrating implementation of Social Security with SBMOPS. PSUs integrated (v) Floor Coordinators at Branches Schemes of Government of India viz. PM independently are NTPC and ONGC, Kisan Samman Nidhi Yojana, Pradhan which is in the process of completion. The utilisation of SSL executives as floor coordinators was one of the initiatives implemented for enhancing customer service at the branches. Their role involves meeting and greeting customers visiting the branches and directing them to the counters and channels. Presently, around 1,352 SSL executives are present in various branches for sale of ‘3 in 1’ Demat accounts and also working as Floor Coordinators. In Phase I, coverage of 3,111 Metro and Urban branches are proposed by March-end and after that all Metro and Urban branches are to be covered in Phase 2.

(vi) Revamping of Bank’s Contact Centre The under used Registered Mobile Number (RMN) based automated services are being developed and proposed to be rolled out through SBI’s Contact Centre shortly. An internal call centre is currently functional at Kolkata on a pilot basis, with access to the CRM 360.

| Annual Report 2019-20 52 DIRECTORS’ REPORT

Your Bank has also completed pilot 7. AUCTION OF farmers, during the year. Your Bank also testing for the Airports Authority of India ITEMS GIFTED TO facilitated the transfer of over ` 12,000 (AAI). Integration of National Highway crore to over six crore farmers in just one Authority of India (NHAI), DMRC and HONOURABLE PRIME click by the Honourable Prime Minister of Chidambaram Port Trust is in process. MINISTER OF INDIA India under the scheme, at an event held on 2nd January, 2020. Your Bank has made its services 3. INDIAN RAILWAYS available for collection of proceeds from 10. SMALL SAVINGS Your Bank has migrated salary and the auction of items gifted to Honourable vendor payments of all 216 Railway Prime Minister of India at the National SCHEMES Gallery of Modern Arts, New Delhi. The Accounting Units (RAUs) to Centralised Your Bank services more than 79.18 Ministry of Culture organised the event. and Integrated Payment System (CIPS) lakh PPF and 18.24 lakh SSA accounts, on CMP platform in September 2019. making it the highest among all the SBMOPS is being integrated with 8. PENSION PAYMENTS authorised banks. Additionally, 5.39 Centralised Receipts Portal of Railways Your Bank has been administering pension lakh PPF accounts and 3.13 lakh SSA for taking care of Railways Receipts payment to 57.17 lakh pensioners through accounts were added during FY2020. through the Portal. Once implemented, its 16 CPPCs and made disbursement this will facilitate complete control over of total pension amount of more than ` Receipts and Payments business of 11. OTHERS 1,64,580 crore in FY2020. New pension Railways, which is currently scattered Your Bank’s SBI e-pay aggregator service accounts of 3.30 lakh pensioners were with many banks. has been integrated with Chief Minister’s added in FY2020. Your Bank has also Relief Fund Portal, Government of launched Pension Sewa website www. Odisha and Chief Minister’s Relief Fund, 4. DEPARTMENT OF POST pensionseva.sbi, enabling pensioners to Government of Karnataka, for collection login and view their pension details viz Your Bank is in the process of rolling of donations. State Bank of India has transaction details, generation of pension out the Centralised Integrated Payment been able to get the accreditation status slips, arrear calculation sheet, amongst System (CIPS), a complete solution for of Ministry of Animal Husbandry, Dairying others, from the comfort of their home. entire postal payments. The pilot phase and Fisheries – new Ministry carved out has been implemented w.e.f. November of the Ministry of Agriculture. 2019 for salary payment of Delhi Division 9. PM KISAN SAMMAN of Department of Post. NIDHI YOJANA 5. EDUCATIONAL As an accredited Bank to the Ministry of Agriculture and Farmers Welfare, your CONSULTANTS INDIA Bank has facilitated the distribution of LIMITED (EDCIL) ` 42,274 crore under the scheme to the You Bank has executed successful integration of EDCIL, a MINI Ratna PSU, conducting recruitment exams for 80 PSUs and ABs, with SB MOPS, for the collection of recruitment fees.

6. DIRECT BENEFIT TRANSFER (DBT) Your Bank is the sole Banker for processing Direct Benefit Transfer of LPG subsidy (DBTL). The Total number of transactions and amount processed in FY2020, up 31st March, 2020 are as under:

(` crore) Particulars No. of Amount Transactions (in Crore) DBT 57.26 2,95,045 DBTL 139.01 25,122

| Annual Report 2019-20 53 DIRECTORS’ REPORT

12. AWARDS Turnover registered a YoY increase of The business model of CAG is based on 60.71% with transactions amounting the Relationship Management concept Government of India awarded your Bank to ` 61,20,331 crore in FY2020 over and each client/business group is the following Awards: ` 38,08,314 crore in FY2019. mapped to a Relationship Manager who z First Prize for opening the largest spearheads a cross-functional Client number of Sukanya Samriddhi Your Bank received International Service Team consisting of highly skilled Accounts amongst all Banks (PAN recognition as the “Best Transaction Bank credit and operations functionaries. India). The award was given at in India” by The Asian Banker for a record National Savings Institute, New Delhi 3 consecutive years. Your Bank was also The relationship strategy is anchored on 30th October, 2019 to celebrate recognised as the “Best Payment Bank on delivering integrated, specified and “World Thrift Day”. in India” by The Asian Banker and “Best comprehensive solutions to the clients, Cash Management House in India” by including structured products within z Outstanding Performance in Sikkim, Corporate Treasurer. a specified time frame. The principal as Sponsor Bank, for timely wage objective of the strategy is to make SBI the payments of MGNREGA. The first choice of top corporates. A regular Ministry of Rural Development gave 2. GLOBAL BANKING review of each corporate relationship by the award. senior management sets the benchmark A. CORPORATE ACCOUNTS for relationship management in CAG. H. TRANSACTION GROUP (CAG) BANKING UNIT Apart from a variety of core credit CAG is a dedicated SBU (Strategic products, CAG offers an array of Transaction Banking Unit (TBU) leverages Business Unit) of the Bank handling the customer specific products like Cash technology to provide comprehensive portfolio of ‘high value credit’ with a Management Product, Treasury & solutions for bulk transaction requirement USP of specialized and efficient delivery Forex products and Merchant Banking of clients. This facilitates efficient platform. The CAG SBU has 4 specialized products in association with other SBUs fund management for its clients along Branches headed by General Managers and subsidiaries of SBI like SBI Capital with value-added services such as located in India’s top 3 commercial Markets Ltd., SBI Gilts Ltd. etc. customised MIS and dedicated single centers viz. Mumbai, Delhi, & Chennai. point client support among other areas. Client Service Teams at CAG Branches The Transaction Banking services In SBI, CAG is a one stop shop which aid customers in selection and delivery facilitate your Bank to maintain a close provides a wide range of financial of any product/service offered by SBI’s relationship with its clients and also to products and services, exclusively to top associates and subsidiaries as listed assess their other Banking requirements rated corporates including their foreign below: such as Credit, Fund Management and associates and subsidiaries. Cross-Selling.

Your Bank offers a wide range of TBU customised products and services to Corporate, Government Departments, Financial Institutions and SME Clients through its large network of over 22,000 branches. Corporate and Government yono Krishi: clients, along with SME, continue to be the One-stop solution key focus segment. Your Bank is giving for all your farming needs thrust for penetration into the SME sector as well as start-ups. Keeping in line with With yono Krishi, farmers can now: market trends, your Bank is continuously • Get upto 0.25%* concession in interest updating and evolving the bouquet of rate for Multi-Purpose Agri Gold Loan TBU products and services offered to through YONO Till 31 March 2020 meet the requirements of clients and has • Get quick weather updates and crop prices • Order agri inputs and farm equipment online the best of products in the market. • Get advice from agri experts

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| Annual Report 2019-20 54 DIRECTORS’ REPORT

z For Capital Market Requirements - 1. INTEREST RATE in economy. Furthermore, the RBI SBI Capital Markets Ltd. (SBICAPS) MOVEMENTS AND announced a cut in CRR by 1%, reduced the minimum daily CRR requirement to z For Treasury and Investments - SBI SLR AND NON- 80% and a new scheme for Targeted GILTS and SBI SECURITIES SLR PORTFOLIO Long Term Repo Operation allowing z For Investments – SBI Mutual Fund OF YOUR BANK corporate bonds to be invested out of Ltd. HTM portfolio. Also, it further announced The GMU manages the Investment moratorium on Term Loans, easing of z For General & Life Insurance - SBI Portfolio of your Bank and also maintains Working Capital financing, and deferment General Insurance Co. Ltd & SBI Life the regulatory requirements of CRR and of Interest on Working Capital facilities, Insurance Co. Ltd SLR. The World Health Organization amongst others. (WHO) has declared the recent outbreak of z For Receivables factoring - SBI Global Factors Ltd. the novel coronavirus disease (COVID-19) On the domestic front, the interest rates a pandemic. The impact of COVID-19 continued on the down trend. Benchmark To align with the changing banking was also felt in India. The Prime Minister 10Y security (6.45 CG-Sec 2029), touched landscape, your Bank has created two announced a country-wide lockdown in a peak of 6.80% on 16th December 2019, specialised business units within the CAG response to the COVID-19 pandemic. before touching a low of 6.07% on 09th Business Vertical: March 2020. Lower yields have resulted As a result, an extreme risk aversion was in opportunities for booking profits and z Credit Light Group (CLG) - for looking witnessed in emerging market bonds also to reduce provisions on investments. at 360° banking requirements of and equities. Additionally, FPI outflows of customers, especially in credit light ` 1.21 lakh crore was seen from debt and The banking system liquidity, which sectors viz - Pharma, FMCG, IT, Auto equity assets. Redemptions from mutual remained in deficit at the beginning of etc. funds and lack of investor demand was FY2020, turned surplus by the end of also seen. Globally, central banks have Q1FY2020 on account of Open Market z Financial and Institutional Group slashed policy rates and announced asset (FIG) - to address credit and Operations (OMO) by RBI and foreign purchase programs. The Governments transactional banking requirements inflows. Furthermore, lack of credit have announced significant fiscal of Financial Institutions like Insurance growth accentuated the situation and the packages to support the economy. Companies, Brokerage Firms, Banks liquidity of the banking system stands at (Private and Foreign) and Mutual ` 4.96 trillion at the end of March 2020. On 27th March 2020, RBI Monetary Policy Funds. Committee cut repo rate by 75 bps to 4.40%, while also reducing the reverse The total loan portfolio of CAG as on 31st repo rate to 4%, thereby widening the March 2020 was ` 5.38 lakh crore (fund interest rate corridor to 65 bps from 50 based - ` 3.63 lakh crore and non-fund bps. RBI has also announced a slew based - ` 1.75 lakh crore) compared to of measures to address the stress total loan portfolio of ` 5.36 lakh crore (fund based - `3.61 lakh crore and non- fund based - `1.75 lakh crore) as on 31st March 2019.

Major top corporates of the country and Navratna PSUs are esteemed customers of CAG Business vertical. POWER JYOTI PUL FOR NBFCs B. TREASURY OPERATIONS TBU PRODUCT THAT HELPS COLLECT CASH CHEQUE IN The Global Markets Unit (GMU) performs POOLING ACCOUNT THROUGH the Treasury Operations of your Bank. It AUTHORISED PERSONNEL is responsible for deployment of surplus funds available in the markets to achieve Salient Features: • Cash / Cheque deposition through desired risk-adjusted returns. GMU’s CBS Screen No. 8888 portfolio comprises of investments in • No need to enter A/c No. Instead, SLR and Non-SLR Securities, Publicly 4-digit Fee Type is entered Traded Equities, Venture Capital Funds, • Deposition by NBFC's sta, whose details are pre-uploaded in CBS Private Equity, and Strategic Investments. • Max. deposition `3 Lakhs at Additionally, it offers multiple products Non-Home Br. (BM may permit more) and services that cater to the foreign • Accepted at all 22000+ SBI Branches exchange requirements of the customers. • Increases your Branch Fee Income

For any query, please call 9884107504 or email to cm2[email protected]

| Annual Report 2019-20 55 DIRECTORS’ REPORT

2. EQUITY MARKETS Your Bank has managed the equity 4. FOREX MARKETS portfolio by following the strategy of The rapid outbreak of COVID-19 active rebalancing of based on key global, The GMU handles the foreign exchange dominated headlines as global risk assets domestic events. Additionally, your Bank business of your Bank, providing sold off sharply as the spread of the is striving to achieve an optimum portfolio solutions to the customers for managing disease outside China led to fears that to achieve the desired returns from the their currency flows and hedging risks disruption of the global economy could risk-reward perspective. through options, swaps and forwards, in be more severe than earlier estimated. addition to providing liquidity to markets. The COVID-19 shock acted as a trigger Your Bank is a leading player in Rupee for markets to correct. Indian markets 3. PRIVATE EQUITY/ Spot and Rupee Forward markets and witnessed their steepest decline in March VENTURE CAPITAL FUND has a sufficiently high market share in with FII outflow of` 62,000 crore during Your Bank has sanctioned an investment merchant foreign exchange flows. Your March, 2020. The NIFTY 50 return during of ` 1,250 crore in Special Window for Bank is the leader in providing liquidity FY2020 was (-)26.03%. Affordable and Mid-Income Housing in CCIL Fx Clear platform. The volume Investment Fund (SWAMIH Fund-I), which generated in Currency Futures puts your However, the market valuations became is a special fund launched and sponsored Bank in the bracket of top three client attractive post this steep correction and by the Government of India to provide Banks of exchange houses. with liquidity support from majority of last mile funding to stalled real-estate Central Banks across the globe have projects. Your Bank is actively onboarding resulted in equity markets showing signs customers on FX-Retail platform rolled of recovery. Going forward, evolution of Divestment of noncore assets was out by CCIL through which customers will COVID-19, policy response on economic actively pursued in FY2020 and your benefit from transparent and competitive stress and recovery in global as well as Bank has made full exit in Equifax Credit pricing. domestic economy would be few of the Information Services Private Limited, key events that would decide the direction Petronet MHB Limited and a partial exit in Portfolio Management Services of the markets. National Stock Exchange of India Limited As per RBI’s instructions, your Bank has (NSE). ceased all PMS related activiies since 1st April, 2019.

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| Annual Report 2019-20 56 DIRECTORS’ REPORT

Your Bank currently deals in Over The Derivative transactions carry market Your Bank has various committees Counter (OTC) interest rate and currency risk, that is, the probable loss your and departments in place to monitor derivatives, along with exchange-traded Bank may incur as a result of adverse various types of risks. The Asset Liability currency derivatives and Interest Rate movements in interest rates/ exchange Management Committee (ALCO) Futures. The interest rate derivatives rates. It also carries credit risk, that is, oversees the efficient management traded by your Bank are Rupee interest the probable loss that your Bank may of liquidity risks. The Market Risk rate swaps (OIS), Foreign Currency incur if the counterparties fail to meet Management Department (MRMD) interest rate swaps (IRS), Foreign their obligations. Your Bank’s “Policy identifies, measures, and monitors Currency to Rupee interest rate swap for Derivatives” approved by the Board market risk associated with derivative (MIFOR), Forward Rate Agreements prescribes market risk parameters (Greek transactions. MRMD also assists ALCO (FRA), Caps, Floors and Collars. limits, Loss limits, cut-loss triggers, in controlling and managing these risks Currency derivatives dealt by your Bank open position limits, Duration, Modified and reports compliance with policy are Cross Currency Swaps (CCS), USD/ Duration, PV01, amongst others) as well prescriptions to the Risk Management INR options and Cross-Currency options. as customer eligibility criteria (credit Committee of the Board (RMCB) at The products are offered to your Bank’s rating, sanctioned limits and CAS rating regular intervals. customers to hedge their exposures. The as per Customer Appropriateness contra positions may be kept in Option and Suitability policy) for entering The accounting policy for derivatives has or MIFOR book or covered back to back into derivatives transactions. Risk on been drawn up in accordance with the in the interbank. Derivatives are used by interbank counterparties is monitored RBI guidelines, the details of which are your Bank both for trading as well as for through limits set for the purpose. These presented under Schedule 17: Significant hedging balance sheet purposes. counterparties are required to execute Accounting Policies (SAP) for FY2020. ISDA with us.

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| Annual Report 2019-20 57 DIRECTORS’ REPORT

C. INTERNATIONAL BANKING OPERATIONS

17

Branches/Offices Branches Belgium (1) USA (3) Germany (1) UK (1) Subsidiaries California (7) Subsidiary Canada (6) Russia (1) UK (13) Rep Office USA (1) Rep office Turkey (1) France (1)

1

Rep Office Brazil (1)

| Annual Report 2019-20 58 DIRECTORS’ REPORT

Branches/Sub Offices Branches/Offices Subsidiary China (1) Maldives (4) Indonesia (11) S. Korea (1) Sri Lanka (5) Nepal (108) Japan (2) Bangladesh (18) India (1) Myanmar (1) Joint Venture Singapore (6) Bhutan (1) Hong Kong (1) Rep Office Philippines (1)

19 161

13

Branches/Offices Bahrain (3) UAE (2) Oman (1) 20 Israel (1)

Rep Office Iran (1) UAE (2)

Exchange Co. Branches/Offices Oman (2) S Africa (3) UAE (1) Subsidiary Mauritius (15) Botswana (1) 2

Investment Nigeria (1) Branches/Offices Australia (2)

| Annual Report 2019-20 59 DIRECTORS’ REPORT

Foreign Banking Subsidiaries / Joint Ventures ShareHolding(%) During FY2020, your Bank has consolidated its overseas operations Subsidiaries to achieve capital conservation, cost State Bank of India (California) 100.00 efficiencies and synergies in overseas markets. Your Bank has rationalised its SBI Canada Bank 100.00 overseas operations by closing four State Bank of India (UK) Limited 100.00 branches- Nassau (Bahamas), Paris Commercial Indo Bank LLC 60.00 (France), Jeddah (Saudi Arabia), Tianjin (China) and merged two branches- SBI (Mauritius) Limited 96.60 Gulshan (with Dhaka, Bangladesh) and Bank SBI Indonesia 99.00 Verdun Road (With Little India, Singapore). Bank SBI Botswana Limited 100.00 During this period, a Sub-Office was started in Melbourne to increase our Nepal SBI Bank Limited 55.00 share in remittance and Trade Finance Foreign Non-Banking Subsidiary business. Representative Office at Paris and an extension counter at Motijheel SBI Servicos Limitada, Brazil 99.99 (Bangladesh) were also operationalized. Joint Venture Also, 6 India Visa Application Centres Bank of Bhutan Limited 20.00 (IVAACs) were opened in Bangladesh at Thakurgaon, Brahmanbaria, Comilla, Sathkira, Bogura and Naokhali. Further, International Operations of your Bank GLOBAL PRESENCE in line with your Bank’s growth strategy in have been guided by the overarching SAARC region, Nepal SBI Bank Limited, principle of supporting global Indian Your Bank’s first global footprint was a subsidiary of your Bank has opened 22 corporates and Indian diaspora spread with the branch of Bank of Madras in offices. Thus, 9 foreign offices of SBI and across the geographies. However, the Colombo, Sri Lanka in July 1864 (First 23 offices of overseas subsidiaries have focus of the bank has slowly shifted from amongst Indian Banks). With a presence been added during the FY2020. its reliance on the India based business across all time zones through 233 offices to claim its place in the overseas in 32 countries, your Bank has gradually local markets, in line with its vision spread its wings across the globe and to become a truly International Bank. has become a pioneer of International Consequently, it has a separate Business Banking among the Indian PSBs. These Unit – International Banking Group (IBG) offices are being managed by the IBG. headed by the Managing Director (GB&S) and supported by the Deputy Managing Director (IBG) for its overseas operations.

The breakup of overseas offices of our Bank:

Overseas Offices Offices Overseas SBI Offices opened closed Offices Overseas as on during last during last as on Branches 31.03.2019 12 months 12 months 31.03.2020 Business Volume Branches / 57 8 7* 58 USD Sub-Offices / 58,422 Mio Other Offices Subsidiaries (9) 0 0 (9) Offices of 140 23* 0 163 Net Profit Subsidiaries USD 471 Mio Representative 6 1 0 7 Offices JV/Associates / 5 0 0 5 Managed exchange Cos /Investments Total 208 32 7 233

*Includes extension counter shifted to State Bank of India (UK) Ltd. (Subsidiary)

| Annual Report 2019-20 60 DIRECTORS’ REPORT

1. CREDIT CONTRIBUTION: Offices (FOs) for an orderly growth of The department co-ordinates with BUSINESS DRIVER Trade Finance portfolio. GTD formulates Ministry of Defense for their Bank policies and innovates new products for Guarantees and other Trade Product Your Bank has facilitated Indian FOs as per changing regulatory norms services through our FOs. corporates in their growth strategy and market demands. It takes a lead including Green Field ventures by in introduction of new technologies to Trade finance business has a contribution arranging debt in Foreign Currency by improve service quality in Trade Product of ~ 27% in the IBG advances portfolio way of External Commercial Borrowings offerings viz., LC discounting, Secondary and it contributes ~12% to Non-Interest through syndicated deals in conjunction Market Participations in Bank / Corporate Income. with other Indian and Foreign Banks, Risk, India centric Trade Credit, ECA/ and through bilateral arrangements. In MLA backed Trade Finance, Supply SBI has been recently awarded “The Best recognition of its exemplary efforts, your Chain Finance program, Letters of Credit, Trade Finance Provider (India) –2020” Bank was chosen as the “Syndicated Bank Guarantees etc. Robust Trade for eighth consecutive year by Global Loan House of the Year” - India by APLMA Finance technology solution for back Finance Magazine. (Asia Pacific Loan Market Association). end operations with a customer interface and AML / CFT compliance solution 3. OVERSEAS TREASURY Your Bank has sanctioned Foreign integrated to it is available at all FOs. Currency loans to the tune of USD 9.2 MANAGEMENT: billion to Indian related corporates and GTD facilitates Trade Credit to Indian Treasury Management Group (TMG) at USD 11.35 billion loans to overseas Corporates for their imports by International Banking Group undertakes entities. In the field of Energy, your Bank centralized handling of Quote process. following functions for Foreign Offices: has provided a funding of USD 1.82 billion It plays an important role in synergizing to oil companies, which have significant business flows between Domestic and z Liquidity Management strategic importance for India, in terms Foreign offices for maximizing returns. It z Dealing Room Operations of augmenting India’s Energy Security also organizes Trade related workshops/ amid unstable Crude and Forex prices. Conferences, by partnering with BAFT z Investments (Bankers Association for Finance and 2. TRADE FINANCE Trade), GTR (Global Trade Review) etc., TMG-IBG manages overall liquidity which provide a good platform for Trade portfolio of IBG and also monitors ALM SBI provides a slew of Trade Finance Finance operating officials to acquaint ratios. TMG is the nodal department products and services to exporters with latest trends in Global Trade Finance for raising Long and Medium-Term and importers through an extensive, market. Further, Workshops are also Funds through Bond Issuance (MTN/ well equipped branch network that organized by partnering with ICC, FIEO Standalone 144A), Syndicated Loans etc. operates in all time zones in India and etc to provide platform for networking During the FY, your Bank did not go for abroad. Global Trade Department (GTD) with Exporters/ Regulators/ Industry facilitates and supports our Foreign majors.

| Annual Report 2019-20 61 DIRECTORS’ REPORT

any public bond issuance/ syndicated technological advancements and Centralized Co-ordination Cell for loan. TMG has utilized various means of evolving risk framework in dealing processing Inward Foreign Bank borrowings in small tranches, to keep with the Correspondents. Guarantee (CCC-FBG) for processing the cost of resources in check. Further, Inward and outward Foreign Bank z FIG strives to make SBI the TMG in its endeavor to optimize the cost Guarantees under IBD provides a one Correspondent Bank for all Indian of resources has prepaid USD 1.325 Bn stop solution for Correspondent Banks/ Public sector and private sector borrowings (in four parts) and replaced Foreign Offices/ Domestic Banks/ banks by utilizing its global presence. it with lower cost resources. TMG has Domestic Offices seeking Foreign Bank issued bonds through private placements z IBG Correspondent Banking Guarantees based on their counter of USD 380 Mio in three tranches policy is refined at regular intervals Guarantees. inculding USD 100 mio through Green incorporating the latest trends in Bonds, which demonstrates bank’s ability Correspondent Banking and based IBD is instrumental in improving FEMA to adapt to different market conditions on learnings of adverse operational compliance across the Bank. It ensures and funding requirements. deficiencies faced by Financial timely submission of RBI/FEMA related Institutions. returns and facilitates system related TMG manages IBG’s Investment book, enhancements and updations with which currently stands at ~ USD 5.70 z More than account relationships, FIG regard to FEMA/ RBI guidelines. IBD Bn. These investments are held in highly product focus areas have widened to is also involved in introducing latest rated and liquid scrips which provide Trade Finance, Credit, Treasury, Debt technological tools and product stable interest income for IBG with low/ Capital Markets, Forex Business, innovations. medium risk. The department monitors Transaction Banking, Remittances and Currency Clearing. dealing rooms at major centres, in order 6. RETAIL AND to facilitate Money Market, Forex and Derivative functions at FOs. Currently 5. INTERNATIONAL REMITTANCES STRATEGY there are four major dealing rooms at BANKING-DOMESTIC (IBD) Your Bank has been a “Window to India” London, New York, Hong Kong and for NRIs residing in different parts of the Bahrain who work on a hub and spoke IBD at IBG serves as a single point of world through its specialized retail and model to help smaller Foreign Offices in contact between the Domestic Offices remittances products. As IT infrastructure their operations. Dealing operations also and Foreign Offices in areas related to is the bedrock for improving customer provide hedging solutions to balance Trade Finance and International Banking. offerings in Retail & Remittances sheet in optimum manner. IBD thus contributes to synergize Forex segment, a detailed IT strategy was put in business flows from Domestic Offices to place for implementation of IT enablers. 4. FINANCIAL Foreign Offices/ Foreign Correspondent The highlights of the year are mentioned Banks and trading community by acting here under: INSTITUTIONS GROUP as a robust link between them and – CORRESPONDENT addressing related gaps. RELATIONS The Group facilitates linkages of the Bank with international stake-holders viz. Correspondent Banks, Foreign Govt. Agencies and Developmental Financial Institutions, International Chamber of Commerce etc. on one side and facilitates synergy between IBG and other Business Verticals such as Corporate Accounts Group, Commercial Clients Group, Global Markets and National Banking Group on the other side.

z FIG continues to leverage on the Bank’s correspondent network of 227 Banks in 56 countries to deliver tailored financial solutions for its global customers.

z FIG adopts data driven approach for enhancing business relationship with the Correspondent Banks with a single-minded proposition to deliver Ms. Nirmala Sitharaman, Hon’ble Finance Minister of India, Mr. Randal Quarles, Vice Chair value for the corporates and end for Supervision- Federal Reserve Board, USA interacting with Mr. Rajnish Kumar, Chairman customers. It embraces sustainable SBI at the SBI Reception during World Bank/IMF Annual meetings 2019 at Washington DC.

| Annual Report 2019-20 62 DIRECTORS’ REPORT

z YONO SBI, one of the most 7. GLOBAL PAYMENTS z 175 Vostro Accounts for different ambitious and secure digital offering AND SERVICES Correspondent Banks/ Exchange of the bank has now been extended Companies/ SBI Foreign Offices are to customers at our overseas offices. Global Payments & Services (GP&S), a unit maintained. YONO SBI UK has been successfully under International Banking Group (IBG), z Pan India Nodal Office for handling launched in September 2019 and has comprises three branches/offices viz., ACU transactions for SBI. already seen significant acceptance Global Link Services (GLS), International from the customers. Services Branch Mumbai (ISBM), and International Services Branch Ernakulam 8. OVERSEAS IT INITIATIVES z YONO Global is scheduled to be (ISBE). It facilitates online inward Your Bank continues to leverage rolled out across 10+ geographies remittances from overseas locations in 2020. technology solutions to automate to India, Foreign Currency Cheque processes, enhance customer z Remittance business strategy collection, Opening & Maintenance of experience and manage risk. The was re-imagined by focusing on Vostro Accounts, Asian Clearing Union initiatives undertaken at our overseas developing various ‘area specific (ACU) Transactions and Bank for Foreign offices include: Payment and Remittance Corridors’, Economic Affairs (BFEA) of USSR section. like Mauritius to Bangladesh in BDT The highlights of the year are: z For ensuring optimal distribution (Bangladeshi Taka) and Gulf to Nepal of excess volume of transactions (NPR). z Tie-up with 55 Exchange Companies, or traffic seamlessly, the High one Money Service Business and six Availability (HA) project was initiated. z Open Banking project for opening Banks for channelizing inward rupee HA implementation in Finacle Core up of Bank’s Customer/Account remittances from overseas to India. and Connect 24 has been rolled information through API’s to third out in all FO’s. This is expected to party service providers has been z During FY2020, GP&S on behalf of enhance the availability of systems successfully implemented in four domestic branches handled 64,823 and eliminate possibilities of Foreign Offices (UK, Germany, Export bills (in USD and Euro) and breakdowns. Antwerp and Bahrain) during 35,454 Foreign Currency Cheque FY2020. collection aggregating to USD z Automation of Regulatory reports 16.431 billion. through Oracle Financial Services Analytical Application (OFSAA) for z During the same period, GP&S our Foreign Offices has commenced handled 10.387 million online inward and this year, the automation of remittance transactions amounting regulatory reports of our South Africa to USD 6.797 billion, received from operations has been completed. various global centers. More FO’s are now being taken up under this project for automation of their Regulatory reports.

| Annual Report 2019-20 63 DIRECTORS’ REPORT

z Open Banking project for opening CGMs in the CCG are assigned as the group relationship owners in order to improve of Bank’s customer/account the quality of coverage and enable an integrated view on exposure, earnings amongst information through API’s to third others, across the entire group. Your Bank has set up experienced team of ‘Structuring party service providers as per PSD2 Specialists’ to support deal structuring for large proposals across lending, bonds, directives has been successfully International Banking, and Structured / Mezzanine Finance. implemented in four FO’s namely UK, Germany, Antwerp & Bahrain CCG Mar’19 & Mar’20 Levels are as given below: during 2019-20. (` in crore) z Automation of the Ind As Financial Levels FY 2019 FY 2020 Statements has been taken up Non-food Advances 400,909 409,589 during the year. The gamut of work CASA Deposit (%) 24.73 26.12 under the IFRS Ind AS project would Avg Business per employee 146.69 153.56 include the automation of the Risk Model (For PD/LGD) developed Other Income (excluding income from AUCA 2,619 2,707 by our Risk department and recovery) consolidation of IBG Balance sheets Pre -TPM Operating Profit 32,478 32,699 through OFSAA.

z A Centralized Back Office for Foreign CCG has launched YONO for business shares its views as a lender with various Offices is being contemplated as a customers. This is designed to provide a Ministries of Government of India and strategy for optimization of Capital best in class, user-friendly digital platform the RBI, on subjects relating to new and reducing costs through efficient for Corporates for transaction banking as policies, Model Concession Agreements deployment of Human Resources. well as Trade Finance Business. and broader issues faced within the The proposed model is to have a BPO infrastructure finance space. in a premised owned/leased by SBI The group continues to provide a robust within Bank’s network and directly platform to its customers for Trade Recently, there has been stepping up in under control of IBG. The BPO will Finance and Forex business. We are investment in the infrastructure sector handle the entire transaction life in the process of setting up centralized by the Government, along with various cycle associated with the transaction processing cells (CPCs) to process all sectoral reforms and incentives, which making/data entry to be handled by trade finance transactions of the Bank. has resulted in an inflow of new projects, outsourced employees and checker/ These CPCs will increase efficiencies in particularly in industries such as City Gas authorizer functions to be handled a) Delivery – better TAT, information flow Distribution, Roads, Power Renewables by Bank’s Officials. and customer satisfaction – b) Regulatory among other sectors. The infrastructure compliance and c) Housekeeping. space is expected to experience a further fillip with the introduction of the National 3. COMMERCIAL Digital Interface on Pricing and Knowledge Infrastructure Pipeline (NIP) being created CLIENTS GROUP (DIPAK) a new pricing tool has been with an investment of ` 102 lakh crore made available to Operating functionaries to support around 6,500 infrastructure (CCG) and Sanctioning Committees in order projects across sectors. The emergence to enable data - driven pricing of our of COVID-19 is undeniably a human A. COMMERCIAL CLIENTS Corporate Loans. This has been rolled tragedy and is expected to have an The CCG vertical is headed by a MD and out in all the branches in CCG. impact on all the sectors of the economy. supported by two DMDs, five CGMs and Your Bank is closely monitoring all the nine CCG Regional offices (CCGROs) B. PROJECT FINANCE AND projects under implementation and headed by GMs. The vertical services STRUCTURING SBU expects to tide over its impact in the short the credit needs of select large corporate to medium term. clients. The very large ones are serviced Your Bank’s Project Finance and by CAG. The mandate of the vertical is Structuring Strategic Business Unit Marking a shift towards a ‘Originate to to cater to all needs of this segment of (PF&S SBU) deals with the appraisal and Distribute’ business model, a Structuring corporate clients, to manage associated arrangement of funds for large capex- Team was set up at your Bank’s Project risks and sustain growth. There are 48 heavy infrastructural projects, such Finance and Structuring Strategic CCG branches of which one of them as in Power, Roads, Ports, Railways, Business Unit (PF&S SBU). This team caters to the needs of capital market and Airports. It also covers other non- is providing customised structuring participants such as brokerage houses infrastructure capex-heavy projects solutions for financing of projects, while and manages IPOs. in industrial sectors such as Metals, keeping the Return on Equity from the Fertilisers, Cement, Oil and Gas, amongst transaction a priority. Experienced others. PF&S SBU also provides support professionals are being recruited from to other verticals in vetting their large different industries to provide Structuring ticket term-loan proposals. To strengthen Solutions to your Bank’s clients. the policy and regulatory framework for financing infrastructure, your Bank

| Annual Report 2019-20 64 DIRECTORS’ REPORT

Kempegowda International Airport Bengaluru Hindustan Urvarak and Rasayan Ltd, Sindri Urea Project Financed by your Bank Financed by your Bank

Metro Rail Project Wind Power Project Financed by your Bank Financed by your Bank

4. STRESSED ASSETS MANAGEMENT 2. Over the last few years, there has been a significant rise in the Gross 1. The movement of NPAs in the Bank and recovery in Written-off accounts during Non-Performing Assets (GNPA) in the the last Four Financial years are furnished below: Banking Industry. According to the (` crore) Financial Stability Report of RBI for December 2019, in a sign of possible FY2017* FY2018 FY2019 FY 2020 recovery from the impaired asset Gross NPA 1,77,866 2,23,427 1,72,750 1,49,092 load, GNPA ratio of SCBs remained Gross NPA% 9.11% 10.91% 7.53% 6.15% stable at 9.3% as on 30th September Net NPA% 5.19% 5.73% 3.01% 2.23% 2019 vis-a-vis 31st March 2019. It Fresh Slippages + 1,15,932 1,00,287 39,740 54,510 showed a substantial improvement Increase in O/s over GNPA ratio of 10.8% in Cash Recoveries / 32,283 14,530 31,512 25,781 September 2018. Macro-stress tests Up- gradations for credit risk show that under the baseline scenario, SCBs’ GNPA ratio Write-Offs 27,757 40,196 58,905 52,387 may increase from 9.3 per cent in Recoveries in AUCA 3,963 5,333 8,345 9,250 September 2019 to 9.9 per cent by PCR 61.53% 66.17% 78.73% 83.62% September 2020 primarily due to *Post-Mergers change in macroeconomic scenario, marginal increase in slippages and

| Annual Report 2019-20 65 DIRECTORS’ REPORT

the denominator effect of declining 4. In line with Government of India overseeing the sector-wise portfolio. credit growth. Reforms Agenda for Responsive The Account Management Teams and Responsible PSBs, SAMG was functioning under the guidance of 3. A large spurt in NPA Level during revamped as Stressed Assets seven General Managers. As on FY2021 was anticipated under the Resolution Group (SARG) for March 2020, SARG has 19 Stressed backdrop of COVID19. To counter providing focus on resolution of Assets Management Branches this, your Bank is taking several NPAs with sector specific approach. (SAMBs) and 53 Stressed Assets pre-emptive measures in extending At present, the vertical is headed Recovery Branches (SARBs) across assistance to its borrowers, so that by Managing Director, supported the country, covering 61.26% and they can face the current challenges by Deputy Managing Director and 86.03% of your Bank’s NPAs and and continue as performing assets. three Chief General Managers AUCA, respectively. However, the level of NPA by the end of March 2020 significantly declined Industry wise distribution of the NPA portfolio (as on 31st March, 2020) is represented as under: as a result of the continuous reduction of GNPA through FY2019 and FY2020 NPAs - Whole Bank due to the following factors:

I. The Insolvency and Bankruptcy 11% Power Code (IBC) 2016, for the resolution of Stressed assets, has provided your Trading Bank with a time bound, transparent 7% Telecom and effective mechanism to tackle stressed assets. The Bank has Infrastructure (Others) achieved resolution in some of high 6% Roads & Ports value NPA accounts referred to the 54% Iron & Steel NCLT under the Code. The cases 5% referred to the NCLT are monitored Engineering by a specialised NCLT cell at SARG. 5% Textiles A total of 821 cases were referred to Metals & Mines the NCLT as on 31st March 2020, out of 4% 3% Others which 662 cases have been admitted. 3% Your Bank has been able to resolve and recover an amount of `12,024 2% Crore in the account of a single big borrower through the NCLT process. Furthermore, 82 cases have been 5. A significant portion of the recovery A team has been set up to look resolved, including some high- at SARG comes from Compromise after the sale of Assets to Asset st nd value accounts from RBI’s 1 & 2 and NCLT. The vertical also Reconstruction Companies (ARCs) reference lists. implements special OTS schemes on Cash and/or Security Receipts (Non-discretionary and Non- (SR) basis. th II. RBI’s 7 June 2019 circular on discriminatory) from time to time. prudential framework for resolution of high-value distressed assets has provided a new avenue for time- Mode of Recovery - Whole Bank - FY20 bound resolution of these accounts (out of NCLT process). Your Bank is 17% actively exploring resolution under this mode. Compromise 26% III. In non-NCLT cases, recovery is SARFAESI being actively explored through DRT action under the SARFAESI Act and filing of suits in DRTs and Courts. Sale to ARC 13% The sale of mortgaged properties NCLT is being explored through the 4% Normal Recovery common e-Auction Platform https:// 2% ibapi.in (“e-BÇÅ¡¸” - Indian Banks 3% Misc Recovery* Auction Properties Information) under the aegis of the IBA. The OTS/ Compromise route is also being explored for the recovery of sticky 35% loans from eligible cases.

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6. A Special Situation Team of experts z Cash recovery in NPAs and AUCA; judgement. Various new IT initiatives in credit monitoring and resolution are being introduced including z Reduction in loan loss provisions; has been constituted at SARG for the LITMAS (Litigation Management accounts of ` 500 crore and above z contribute to your Bank’s bottom- System) for better monitoring of legal in SMA2 and above categories. This line. recourses undertaken in the stressed helps in monitoring and putting in account for expediting recovery. A place resolution plan from the very z Unlocking the capital for credit public interface for OTS/Compromise beginning of default and to take pro- extension. has been developed and rolled active resolution measures at an out on 28.02.2020 for creation of early stage of default. 8. SARG introduced certain innovative transparent and robust one-time methods and gave first mover settlement mechanism. It will further 7. Today, SARG stands as one of the advantage to your Bank in areas strengthen the transparency and most important verticals of your such as arranging Mega e-Auction efficiency in the process. Bank and the GNPA of your Bank is of large number of properties on on course of a downward journey. Pan-India basis and identification Resolution of stressed assets by of un-encumbered properties of the SARG presents the following latent borrowers / guarantors and arranging income generating avenues for for attachment of properties before your Bank:

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