Investor Day Presentation - Digitization

PRESENTATION TO SBI INVESTORS 30th October, 2019 Indian customers are increasingly becoming digital as is evident in digitization of payments – mobile is increasingly becoming the form factor of choice for customers

Share of transactions by type of digital transaction

Share of payment transaction volume by mode, % Growth Rate,’16-18 Total (Cr) ~965 ~1,451 ~2,328 55%

100% 0 6 UPI 25 23 Debit Card 23

Credit Card 11 10 19 Prepaid Cards 4 3 m-wallet 17 8 21 3 18 Transfers (IMPS, RTGS, BBPS) 40 34 28 Direct Debits 3 3 2 2016 17 2018

Mobile is becoming the form factor of choice, with 3X increase in share of digital payments in the last 2 years 1 Footnote SOURCE:SOURCE: SourceRBI, NPCI 2 SBI, with its wide reach and scale, is the industry leader across digital platforms

Leadership across social media platforms Leadership across digital banking with wide reach and scale

▪ 43+ Cr customers; 65% in rural and Rank 1 – 1.7 Cr likes semi-urban areas Unparalleled reach ▪ Network of ~22,000 branches, ~58,000 ATM locations & ~58,000 CSPs Rank 1 – 1.8 L subscribers and scale (Business Correspondents)

Rank 1 – 36 L followers

Rank 2 – 8 L followers ▪ Onlinesbi.com ranked No.1 banking website in India ▪ 5th most popular global financial site Rank 1 – 8.2 L followers Strong digital ▪ Among top 10 most visited websites in presence India ▪ Internet banking (~6.6 Cr users) Rank 1 – 4,312 followers ▪ Mobile banking (~1.55 Cr users)

1 Footnote SOURCE: Source 3 Exponential growth in payments and alternate channels in SBI

For H1’FY20 (Apr-Sep’2019)

UPI IMPS POS

POS installations 130 Cr+ Number of transactions 113 Cr+ Number of transactions 1L+

300,000 Cr+ Transaction amount 10,00,00 Cr+ Transaction amount 12% Growth in Cumulative POS

Growth in UPI Growth in 220% transaction amount 56% ~6.3L Cumulative POS over previous year transaction amount over previous year

Other ~74,00,00 Cr ~15,00,000 Cr ~1.94 Cr ~225 Cr highlights RTGS NEFT New Cards Issuance ATM transactions

1 Footnote SOURCE: Source 4 Digitization across all business units to improve customer experience and efficiency

▪ Online application for trade requests; digital forex rate booking Corporate Banking ▪ ERP integration with large corporates ▪ Leader in terms of ▪ Blockchain enabled trade finance (In process) volume and value of acquiring business (3rd in terms of POS ▪ Pre-approved loans acquisition market for merchants PSPL SME share) aided by ▪ Analytics driven Hitachi’s reach and underwriting for loans technology (incldg. statements processing etc) ▪ One of its kind digital ecosystem to address ▪ One-stop solution for customers’ farmers’ banking and banking and lifestyle needs(digital beyond banking needs banking, insurance, investment, marketplace) ▪ Significant productivity Agri Retail gains through re- ▪ Re-imagined branch processes imagined branch (account opening, NFS, cheque journeys clearing) ▪ Use of blockchain for ▪ Pre-approved loans (personal, pre-approved agri loans home loan top up) by leveraging AI (in process) 1 Footnote SOURCE: Source 5 YONO Retail has 3 key pillars to deliver seamless experience to customers and improve the productivity at branches through digitization

Re-imagine SBI

Best in class omni-channel customer experience

1 2 3

Digital Financial Online bank superstore market place “Seamless Omni- “Enable higher “Deepen channel customer cross sell-Enhance relationships with experience” Customer Value” customers”

Digital transformation of end-to-end journeys at branch– “Improve productivity and reduce cost”

1 Footnote SOURCE: Source 6 YONO Retail: Branch employee facing portal enabling e2e digitization will drive significant productivity gains

▪ Form simplification ▪ Aadhaar based pre-population of fields 80% Account ▪ 60%+ of new savings accounts opened through YONO Reduction in TAT opening

▪ Loan processing through data pre-population ▪ External partnerships for underwriting and streamlined processes 30% Productivity improvement Loans ▪ Pre-approved loan products for various segments (e.g PAPL, PAML)

▪ Outward cheque clearing - migration to self-service CDK kiosk ▪ Inward clearing automation through AI and deep learning 40% Cheque Productivity improvement clearing

▪ Digital processing of non-financial service requests in-branch ▪ Key services include KYC/Profile update, cheque book issuance etc 20% NFS ▪ ~25% of branch time is spent on processing of non-financial services Productivity improvement

1 Footnote SOURCE: Source 7 Within 22 months of launch, YONO has delivered significant impact across customer adoption, on-boarding and new business; annual run rate of INR 350 Cr+ of incremental revenue

▪ ~3 Cr downloads in 22 months Overall ▪ ~1.3 Cr Registrations and counting Online market place ▪ 100+ active merchants on Online ▪ ~30 L Unique logins each day market place Account ▪ 100,000+ Daily visits to the online opening market place ▪ ~50 L+ Accounts opened since launch ▪ 80% reduction in Account opening TAT Digital bank ▪ ~2.6 Cr+ Fund transfers completed ▪ ~900 K+ Fixed deposits created Digital lending ▪ ~46 L+ Online bill payments done

▪ ~6 L Pre-approved Digital Personal Cross sell ▪ ~421 K+ Personal accident policies sold Loans disbursed since launch ▪ ~500 K+ Leads for new credit cards ▪ ~9,000 Cr Worth pre-approved loans ▪ ~100 K+ Life insurance policies sold disbursed till date ▪ INR 10.23 Cr+ of LI premium amount ▪ INR 279 Cr of MF AuM acquired ▪ 14 L+ Credit card payments ▪ INR 1,638 Cr+ Credit card bill payments

1 Footnote Annual run rate of INR 350 Cr+ incremental revenue achieved through YONO retail; significant potential to scale up SOURCE: Source 8 YONO Krishi has 4 key building blocks; Phase 1 launched in July 2019 with 3 major offerings - Agri gold loans, Mitra and Mandi, now in 12 languages KHATA MANDI MITRA BACHAT

A knowledge integrator for Ecosystem of partnerships Investment and ▪ Agri gold loans farmers; partners for agri products; partners insurance product ▪ KCC (in process) onboarded for weather onboarded for farm offerings of our JV updates, crop advisory, ▪ SAFAL (in process) equipment and inputs partners Mandi prices ~43,000 Agri gold loan applications received till date (with 40%+ sanction rate) 1 Footnote SOURCE: Source 9 YONO Business: Portfolio of Offerings

▪ Single-sign-on across all corporate banking applications ▪ Unified onboarding with reduced documentation requirements ▪ Single dashboard view across applications Business ▪ Online application for initiating trade requests ▪ Digital forex rate booking with document upload facility

1 Footnote SOURCE: Source 10 Transaction banking: Full suite of services for corporates and government

Virtual Account Digi Number Bulk Dealer E-Collections

1 Power Jyoti Bulk 10 2 E-Payments PUL

9 3

8 4 Easy Dividend Collect 7 5 Payment 6

Cheque Cash / Printing Scanned Cheque Mandate/ Pick Up E-Mandate

1 Footnote SOURCE: Source 11 YONO Global: YONO UK was launched in Sep 2019 with 32 reimagined journeys

Account opening Post login home screen Fund Transfer

Open a new FD Remittance

YONO Global planned for launch in at least 4 other countries by Mar’2020 1 Footnote SOURCE: Source 12 YONO has the best in class features available in the market and has taken much lesser time to build

Key gap compared to peers

Nov 2017 Apr 2016 > 5 years Nov 2016 >5 years

Digital account Fund transfer Online market place1 100+ 25 90 9 ~100 Mutual fund Buy Life insurance1 6 2 Buy General insurance1 8 1 1 1 Pre-approved loan My Dreams Bill payment Credit card Tax saver FD Fixed deposit OD against FD Pre-approved personal loan Non-Financial services

1 FootnoteNumber of merchants or products offered SOURCE: Source Google Playstore, Respective apps 13 More than 60% of IT budget is allocated towards new investments

Share of IT budget Total spend (INR Cr) Key spend areas

Data Centre & Data Warehouse Cloud Services 1,119 68% Capex

Networking & Partnerships ATM Communication

32% Opex and Regulatory 535

1 Footnote SOURCE: Source 14 YONO is aligned with sustainability which is one of the core values for SBI

Setup of YONO green fund 1 2 Key Activities with corpus of ~INR 60 Cr (as part of loyalty program): A▪ Planting of trees A▪ “YONO green party” campaign from Oct 1, 2019 to May 31, 2020 B▪ Customized loyalty program for Construction of bio-toilets B▪ YONO users: – Accumulate Green Reward points Campaign for water conservation C▪ – Digital certificates on redemption C▪ Tie-ups with NGOs, institutions, non- D▪ Campaign for avoidance of single profit organizations (through SBI use plastic foundation) C▪ YONO Grand Party on June 5th 2020 E▪ Usage of solar lamps (World Environment Day) for YONO Green champions

1 Footnote SOURCE: Source 15 SBI has won numerous accolades and awards for leadership in digital and transaction banking

The Best Cash Management The Best Transaction Bank The Best Payment Bank in India House in India in India

Outstanding performance in POS Outstanding performance in BHIM Outstanding performance in Merchant deployment in rural India Aadhaar POS deployment onboarding on BHIM and Bharat QR

The Best Local Cash Management The Best Transaction Bank The Best Transaction Bank Bank in India in India in India

16 1 Footnote SOURCE: Source 16