A Smart Bank, for India on the Go…
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Spine to be adjusted by printer State Bank of India | Annual Report 2015-16 A SMARSMART BANK, FORFOR INDIAIND ON THE GO… State Bank Bhavan Follow us on : Corporate Centre, Madame Cama Marg, Mumbai, Annual Report 2015-16 Maharashtra - 400021 theofficialsbi statebankofindiaofficial Spine to be adjusted by printer Spine to be adjusted by printer CONTENTS Notice ..................................................................................................01 CORPORATE BANKING GROUP .............................................. 55 About SBI ........................................................................................... 02 Corporate Banking ..................................................................... 55 SBI’s Journey Through Numbers ..................................................... 03 Transaction Banking Unit .......................................................... 56 Smart Bank for India on the Go ...................................................... 04 Project Finance & Leasing ......................................................... 58 Ratings ............................................................................................... 09 Mid Corporate Banking ............................................................. 59 SBI Group Structure .......................................................................... 10 International Operations .......................................................... 60 Performance Indicators ................................................................... 12 Stressed Assets Management .................................................. 65 Financial Highlights for last 10 years .............................................. 14 TREASURY OPERATIONS .......................................................... 68 Central Board of Directors ............................................................... 16 (IV) Support and Control Operations .......................................... 71 Committees of the Board/Members of Human Resources and Training ............................................... 71 Local Boards/Members of Central Management Committee/Bank Auditors ....................................... 18 Information Technology ............................................................ 76 The Chairman’s Message ................................................................. 22 Risk Management ...................................................................... 81 Directors’ REPORT Official Language ........................................................................ 87 (I) Economic Backdrop and Banking Environment ............... 30 Vigilance Mechanism ................................................................. 89 (II) Financial Performance ............................................................ 33 Corporate Social Responsibility ................................................ 89 (III) Core Operations ....................................................................... 34 (V) Associate & Subsidiaries ......................................................... 94 NATIONAL BANKING GROUP ................................................. 34 CORPORATE GOVERNANCE ......................................................... 104 Personal Banking ....................................................................... 35 BUSINESS RESPONSIBILITY REPORT .......................................... 127 Anytime Channels ...................................................................... 39 FINANCIAL STATEMENTS Balance Sheet, profit & Loss Accounts & Small & Medium Enterprises .................................................... 46 Report of the Auditors Rural Banking ............................................................................. 50 State Bank of India (standalone) ............................................ 128 Other New Business Initiatives ................................................ 52 State Bank of India (consolidated) ......................................... 202 Government Business ............................................................... 53 BASEL (III) - PILLAR 3 DISCLOSURES........................................... 252 Efficiency & Cost Control ........................................................... 54 Disclosures on indicators for identification of Global Systemically Important Banks (G-SIBs) ............................ 282 Spine to be adjusted by printer NOTICE STATE BANK OF INDIA (Constituted under the State Bank of India Act, 1955) The 61st Annual General Meeting of Shareholders of the State Bank of India will be held at the “Y. B. Chavan Auditorium”, Y. B. Chavan Centre, General Jagannath Bhosale Marg, Nariman Point, Mumbai-400021 (Maharashtra) on Thursday the 30th June, 2016, at 03.00 p.m. for transacting the following business:- ‘‘To discuss and adopt the balance sheet and the profit and loss account of the State Bank made up to the 31st day of March 2016, the report of the Central Board on the working and activities of the State Bank for the period covered by the accounts and the auditor’s report on the balance sheet and accounts’’. Corporate Centre, State Bank Bhavan, Madame Cama Road, Mumbai - 400 021 (ARUNDHATI BHATTACHARYA) Date: 23rd May, 2016 CHAIRMAN Important Information Dividend Declared : `2.60 per share Dividend Payment Date: 22.06.2016 Period of Book Closure: 07.06.2016 to 11.06.2016 Record Date: 06.06.2016 State Bank of India | Annual Report 2015-16 1 ABOUT SBI Founded in 1806, Bank of The Bank is India’s largest to personal, commercial Calcutta was the first bank commercial Bank in terms enterprises, large corporates, established in India and over of assets, deposits, profits, public bodies and institutional a period of time evolved into branches, number of customers customers through its various State Bank of India (SBI). SBI and employees, enjoying the branches and outlets joint represents a sterling legacy of continuing faith of millions of ventures, subsidiaries and over 200 years. It is the oldest customers across the social associate companies. commercial bank in the Indian spectrum. subcontinent, strengthening the nation’s trillion-dollar economy Headquartered at Mumbai, and serving the aspirations of SBI provides a wide range its vast population. of products and services Our Vision Our Values MY SBI. We will always be honest, transparent and ethical. MY CUSTOMER FIRST. We will respect our customers MY SBI: FIRST IN CUSTOMER and fellow associates. SATISFACTION. We will be knowledge driven. Our Mission We will be prompt, polite and proactive with our customers. We will learn and we will We will speak the language of young India. share our learning. We will create products and services that help our customers achieve their goals. We will never take the easy way out. We will go beyond the call of duty to make our customers feel valued. We will be of service even in the remotest We will do everything we can to part of our country. contribute to the community we work in. We will offer excellence in services to those abroad as much as we do to those in India. We will nurture pride in India. We will imbibe state-of-the-art technology to drive excellence. 2 State Bank of India | Annual Report 2015-16 SBI’S JOURNEY THROUGH NUMBERS lakh 1No. 30.12 crore+ 31.90 crore+ 36,000 Largest Bank in India Active Business size Merchant Banking (Deposits, Advances, customer base Tie-ups Branches, Employees) 59,000+ 64,628 7.22 crore+ 1.16 crore+ Pan-India ATMs Business correspondent and Core Banking Daily average ATM Customer Service Points Transactions (daily transactions average transactions) 23.30crore+ 2.55 crore+ 4.09lakh+ 3.00 lakh+ State Bank Group debit Internet banking Average calls per day POS machines card holders users on Contact Centre 1.77 crore+ 1,03,565 4.21crore+ 5.32 crore+ Green Remit Cards Pan-India village RuPay Debit Card Pradhan Mantri Jandhan coverage Yojna Accounts Expanding Digital Footprint in Internet Banking Transactions (crore) Mobile Banking Transactions (lakh) POS Transactions (lakh) 1441 124 882 90 565 771 64 574 SBI Online is 278 the World's 8th most Visited Banking Site 2013-14 2014-15 2015-16 2013-14 2014-15 2015-16 2013-14 2014-15 2015-16 State Bank of India | Annual Report 2015-16 3 A SMART BANK FOR INDIA ON THe Go… As the digital economy flourishes, SBI is embracing and evolving a digital business model and has grown its technology and channel platforms proportionately. India is rapidly advancing towards their money. They wish to transact more becoming a first world nation, and today, quickly, accurately and efficiently than it is focusing on new opportunities such ever before. And we have always evolved as Digital India, Smart Cities, BharatNet with the times to embrace new consumer etc. As a result, Indians are increasingly attitudes and be aligned as a “Smart” Bank using the internet, social media and their with the service levels that an “India on the smart phones to do their banking. They Go!” demands. are increasingly demanding an end-to-end experience and greater consistency when Going forward, we foresee an doing their banking via their mobile, iPad, unprecedented growth in data, driven or even a PC. Similarly, corporates, SMEs by the latest trends in mobility, social and public institutions are leveraging media, cloud and analytics. At SBI, we are the Internet to conduct their business embracing and evolving a digital business more efficiently and economically. New model and with an eye on the future. The “disruptive” businesses are altogether re- various