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.