yono In This Report Message from 01 the Chairman Leadership 03 Statement About the 05 Report State Bank of 07 India- at a Glance Governing 11 Responsibly Stakeholder Engagement 17 & Materiality Assessment Financial 23 Capital Management Human 35 Capital Management Social and Relationship 43 Capital Management Natural 63 Capital Management GRI 77 Content Index 82 BRR Mapping 86 SDG Mapping 87 Glossary om the sage fr Mes Chairman 39.75Crore The BC channel recorded 39.75 crore transactions in FY 2018-19, which translated to approximately 1.5 million transactions per day. Dear Reader, Serving the country's citizens has been a core Digital India-Banking Solutions for a Sustainable commitment of State Bank of India (SBI) which is deep Tomorrow”. While one of the guiding principles for the rooted in its ethos. For over 200 years, we have always Bank has always been to engender inclusive growth, we striven to strengthen the country's financial system and are now using our sustainability strategy to re-look into are strongly interlinked with India's growth story. Our our specialized products and services for the urban as contribution to the economic and social development well as rural customers and the best way to integrate canvas of the country- propelled the by Bank's vast them into the formal economy. Using digital platforms outreach- remains unparalleled. Customer centricity has has served as one of the most effective modes of driven us to evolve over the years and we have fulfilling this objective. YONO- the Bank's flagship digital continuously taken steps to stay relevant. The digital app for retail customers launched in November 2017, has disruption that we're currently witness to, has brought crossed several milestones. As an integrated omni- about a new financial order- a paradigm shift in the way channel digital platform, YONO today, offers both products and services are being rendered to customers. lifestyle and banking experiences with more than 30 products live on a financial superstore and nearing 90 The use of new technology has become a standard merchant partners live on the B2C Market Place cross-cutting theme across most operational business platform across 21 categories. Our financial inclusion (FI) practices, and this is no different for SBI. We have and financial literacy programs have also been designed embarked on the journey of digitally transforming our to incorporate digital aspects into the activities. The banking products and services and are well on our way spread of digital banking channels and expansion of the to support the ‘Digital India’ vision. In the quest of Business Correspondent (BCs) network have given the improving our sustainable performance and becoming a Bank the impetus to further grow its FI activities. SBI carbon neutral bank by 2030, SBI has begun integrating has re-looked at several strategies and leveraged its digital strategy with its overall sustainability strategy. technology to expand financial services provided to new segments of customers and bring them under the ambit In light of this, SBI is happy to present its fourth of a formal banking system. Sustainability Report for FY 2018-19- “Spearheading 102-14, 102-15, 103-2 1 The BC channel recorded 39.75 crore transactions in FY- have been adopted to enhance talent and productivity 19, which translated to approximately 1.5 million at the workplace whilst enabling HR managers to focus transactions per day. Through its 338 Financial Literacy on driving business profitability. SBI is the largest Centers (FLC's), SBI has conducted over 29,000 camps employer in the Indian banking sector – employing over with the objective of enhancing financial literacy. 2.5 lakh number of people. Despite the challenges Similarly, to help rural youth gain requisite employability involved with a large workforce, several new technology and livelihood skills, the RSETIs supported by the Bank driven initiatives have been rolled out to effectively trained nearly 97,000 rural youth during the reporting manage and empower our human capital. A real time period. Additionally, our pledge for community help platform, 'e-Gyanshala', has been launched on a development has stood solemn over the years focusing pilot basis, serving as a one-stop knowledge repository on key thematic areas viz. Healthcare, Education, for all employees wishing to access guidance documents Sanitation, Culture, Sports, Environment Protection etc. related to operational instructions. The reporting period also witnessed the public issue of the Bank's maiden Green Bond-a continued commitment towards green financing and clean energy. The new era of technological innovation is changing the way organisations view traditional business functions such as human resource management. Several tools The impact of digital innovation on the environment, has been an important area of achievement for us. We've made significant investments in Artificial Intelligence, the Internet of Things (IoT), Robotics, Branch Server consolidation etc. which has led to enhanced energy efficiency and reduced carbon footprint. During the reporting period, the Bank launched Phase –I The scope of complete digital transformation for a Bank of “Nayi Disha”- a corporate communication program as large as SBI is both extraordinary, and challenging. with the objective of driving home the significance of While we have begun taking strong steps in the right being agile, inculcating the Bank's values through direction, we still have a long way to go in terms of employee engagement and enhancing customer becoming a Bank whose products and services are centricity. The programme has been designed as an driven primarily via digital platforms. ongoing intervention in phases covering all employees. Our progress towards sustainable growth and Technology based solutions have also become the development is reviewed periodically and the necessary foundation of the Bank's lending activities. In FY 2017-18, actions are outlined to improve our performance on an State Bank of India won the Asian Banker Awards for the annual basis. best lending initiative—proof of the extent to which the culture of innovation and digitisation has been so widely While I have taken the liberty to highlight some of the embedded within the Bank. Digitisation of various credit key initiatives taken during the reporting period, we processes and products is being done through extant have provided a detailed discussion on several instructions, adherence to credit policies and guidelines sustainability parameters in the pages ahead. We look - with a view to manage risk, ensure regulatory forward to receiving any feedback or suggested areas of compliance and develop reliable information systems. improvement from you on the same. Additionally we are continuously exploring the options of Blockchain, analytics-backed predictive models and Thank you. other innovative technologies to strengthen our lending Rajnish Kumar initiatives. Chairman, State Bank of India. 102-14, 102-15, 103-2 2 Message from the leadership Shri Praveen Kumar Gupta Shri Dinesh Kumar Khara Managing Director, Retail & Digital Banking Managing Director, Global Banking and Subsidiaries “Digital transformation through smart technology “The values that were defined for the Bank since its applications and refined customer orientation have inception haven't changed over time. In fact, we have been two areas of significant intervention for us. Our added on to those values to keep up with the rapidly dedicated focus on supplementing conventional evolving eco-system and to continue providing banking practices with new, emerging technology banking services that promote and support has yielded positive results- enabling the Bank to sustainable growth of all our stakeholders. The streamline several of its internal controls, processes stakeholder groups that we consider vital for long and banking services for customers. In this new age term business continuity have also expanded through of digital revolution, it's easy to get caught up in the the years. We are dedicated towards implementing storm of embedding technological applications. sustainability programs across our entire value chain- However, SBI has developed outcomes for its including safeguarding our natural environment. As investment in this space with a clear sight on its long- the global banking landscape changes, the true term business continuity. Additionally, digital purpose of financial institutions is to now support interfaces have strongly facilitated the actions that will help create long term, positive accomplishment of financial inclusion and literacy impacts through its banking and lending activities. activities - enhancing the impact for each SBI, in its journey of sustainable growth, is beneficiary with an underlying vision of a Digital continuously looking for different ways in which it India in the backdrop.” can increase the scope of its impact.” 102-15,103-2 3 Shri Arijit Basu Smt Anshula Kant Managing Director, Commercial Clients Group & IT Managing Director, Stressed Assets, Risk and Compliance “Meaningful collaborations with new age fintech “The global and Indian regulatory landscape is in a companies have changed the way banking and other state of constant flux to maximise support for financial institutions conduct business. Using data economic growth as well as maintain high standards analytics and algorithms that form the backbone of for compliance and risk. For the banking sector, the lending decisions, apps that support virtual attention is currently