Enterprising . Enduring enterprise.

ANNUAL REPORT 2019-20 STATE BANK OF CONTENTS

1 Notice 55 Treasury Operations

6 About SBI 58 International Banking Operations

7 SBI’s Journey Through Numbers 64 Commercial Clients Group (CCG)

8 Enterprising bank. Enduring enterprise. 64 Project Finance and Structuring SBU

20 SBI Group Structure 65 Stressed Assets Management

22 Financial Highlights: 10 years 68 (IV) Support And Control Operations at a Glance 68 Human Resources and Training 23 Ratings 73 Information Technology 24 Central Board of Directors 78 Risk Management 26 Committees of the Board/ Members of Central Management Committee/ Members 81 Internal Control of Local Boards/Bank’s Auditors 83 Official Language 30 Chairman’s Message 84 Marketing and Communication 36 Directors’ Report 85 Vigilance Mechanism 36 (I) Economic Backdrop and Banking Environment 86 Asset & Liability Management

38 (II) Financial Performance 87 Ethics & Business Conduct

40 (III) Core Operations 87 Corporate Social Responsibility

40 Retail & Digital Banking Group 91 (V) Subsidiaries

40 Personal Banking 100 Corporate Governance

43 Any Time Channels 126 Secretarial Audit Report

47 Small & Medium Enterprises 131 Business Responsibility Report

50 Rural Banking 132 Financial Statement Balance Sheet, Profit & Loss Account & Report of the Auditors 51 NBFC Alliances 132 State (Standalone) 51 Strategy 200 (Consolidated) 52 Government Business 246 Pillar 3 Disclosures (Consolidated) 54 Transaction Banking Unit 272 Disclosures on indicators for 54 Global Banking identification of Global Systemically Important (G-SIBs) 54 Corporate Accounts Group 273 Green Initiative, For Share Holder(s) Use NOTICE

STATE BANK OF INDIA (Constituted under the State Bank of India Act, 1955)

The 65th Annual General Meeting of Shareholders of the State Bank of India will be held at the “SBI Auditorium”, State Bank Bhavan, Madame Cama Road, Nariman Point, Mumbai-400021 (Maharashtra) on Tuesday the 14th July, 2020, at 11.00 A.M. for transacting the following business:

‘‘To discuss and adopt the balance sheet and the profit and loss account of the State Bank of India made up to the 31st day of March 2020, the report of the Central Board on the working and activities of the State Bank of India for the period covered by the Accounts and the Auditor’s Report on the Balance Sheet and Accounts’’.

Corporate Centre, State Bank Bhavan, Madame Cama Road, Mumbai - 400 021 (RAJNISH KUMAR) Date: 05th June, 2020 CHAIRMAN

| Annual Report 2019-20 1 GENERAL INSTRUCTIONS FOR ACCESSING AND PARTICIPATING IN THE ANNUAL GENERAL MEETING THROUGH VC/OAVM FACILITY AND VOTING THROUGH ELECTRONIC MEANS INCLUDING REMOTE E-VOTING

1. In view of the massive outbreak of the COVID-19 4. The attendance of the Members attending the Annual pandemic, social distancing is a norm to be followed General Meeting through VC/OAVM will be counted for and pursuant to the Circular No. 14/2020 dated April 08, the purpose of reckoning the quorum under Regulation 2020, Circular No.17/2020 dated April 13, 2020, issued 24 of SBI General Regulations, 1955. by the Ministry of Corporate Affairs followed by Circular No. 20/2020 dated May 05, 2020 (“MCA Circulars”) and 5. Pursuant to the provisions Regulation 44 of SEBI Circular No. SEBI/HO/CFD/CMD1/CIR/P/2020/79 dated (Listing Obligations & Disclosure Requirements) 12th May, 2020 issued by the Securities and Exchange Regulations 2015 (as amended) read with Section 108 Board of India (“SEBI Circular”), physical attendance of of the Companies Act, 2013 read with Rule 20 of the the Members to the EGM/AGM venue is not required and Companies (Management and Administration) Rules Annual General Meeting (AGM) be held through Video 2014, (as amended), and the MCA Circulars the Bank is Conferencing (VC) or Other Audio Visual Means (OAVM). providing facility of remote e-voting to its Members in The Board of Directors of the Bank has decided to adopt respect of the business to be transacted at the Annual the above guidelines issued by Ministry of Corporate General Meeting. For this purpose, the Bank has entered Affairs and SEBI in conducting Annual General Meeting into an agreement with National Securities Depository of the Bank. Hence, Members can attend and participate Limited (NSDL) for facilitating voting through electronic in the ensuing Annual General Meeting through VC/ means, as the authorized agency. The facility of casting OAVM, which may not require physical presence of votes by a member using remote e-voting system as well members at a common venue. The deemed venue for as venue voting on 14th July, 2020 the date of the Annual the meeting shall be State Bank Auditorium, Corporate General meeting will be provided by NSDL. Centre of the Bank. 6. In line with the Ministry of Corporate Affairs (MCA) 2. In view of the VC facility being provided to the members Circular No. 17/2020 dated April 13, 2020, the Notice of the Bank, the facility to appoint proxy to attend and calling the Annual General Meeting has been uploaded cast vote for the members as provided in Regulation 34 on the website of the Bank at www.sbi.co.in. The of SBI General Regulations, 1955 is not available for this Notice can also be accessed from the websites of the Annual General Meeting. However, the Body Corporates Stock Exchanges i.e. BSE Limited and National Stock are entitled to appoint authorised representatives Exchange of India Limited at www.bseindia.com and as provided in Regulation 32 and 33 of SBI General www.nseindia.com respectively and the Annual General Regulations, 1955 to attend the Annual General Meeting Meeting Notice is also available on the website of NSDL through VC/OAVM and participate thereat and cast their (agency for providing the Remote e-Voting facility) i.e. votes through e-voting. www.evoting.nsdl.com.

3. The Members can join the Annual General Meeting in 7. Annual General Meeting has been convened through the VC/OAVM mode 30 minutes before and after the VC/OAVM in compliance with applicable provisions of scheduled time of the commencement of the Meeting the Companies Act, 2013 read with MCA Circulars and by following the procedure mentioned in the Notice. The SEBI Circular dated May 12, 2020 and if conditions are facility of participation at the Annual General Meeting conducive and the local authorities permit for conducting through VC/OAVM will be made available for at least 1000 the Annual General Meeting, Meeting may be convened members on first come first served basis. This will not in terms of SBI Act and SBI General Regulations, 1955. include large Shareholders (Shareholders holding 2% or 8. In terms of Regulation 7 of SBI General Regulations, more shareholding), Promoters, Institutional Investors, 1955 in case of joint holders, the Member whose name Directors, Key Managerial Personnel, the Chairpersons appears first as per the Register of Members of the of the Audit Committee, Nomination and Remuneration Company will be entitled to vote at the Annual General Committee and Stakeholders Relationship Committee, Meeting provided the votes are not already cast through Auditors etc. who are allowed to attend the Annual remote e-voting. General Meeting without restriction on account of first come first served basis. 9. Members who opt to be present through VC and who do not cast their vote through remote e-voting will be allowed to vote through e-voting at the Annual General Meeting.

| Annual Report 2019-20 2 THE INSTRUCTIONS FOR MEMBERS FOR 4. Your User ID details are given below : REMOTE E-VOTING ARE AS UNDER:- Manner of holding Your User ID is: The remote e-voting period commence on 10th July, 2020 at shares i.e. Demat (NSDL 10:00 A.M. IST and end on 13th July, 2020 at 5:00 P.M. IST. or CDSL) or Physi