STATE BANK OF INDIA

SBI is one of Indias top banks with the largest branch network and asset base

History
The origins of State Bank of India (SBI) go back to the early 19th century when three banks were established in the three presidency towns of the British East India Company Calcutta, Bombay and Madras. In 1921, the three presidency banks were merged to form the Imperial Bank of India. SBI came into being as a successor to the Imperial Bank of India on Jul 1, 1955, with the passing of the SBI Act by Parliament. SBI (Subsidiary Banks) Act was passed in 1959, enabling SBI to take over eight former State-associated banks as its subsidiaries (later named Associates). The GoI through RBI is the principal shareholder of SBI, holding 59.7% of the equity capital

National Banking Group

As of FY05, SBIs NBG had 14 administrative offices, encompassing a network of 9,102 branches, three sub-ofces, 10 exchange bureaus, 86 satellite ofces and 683 extension counters in India. In FY05, new SBUs for personal banking, SME, agriculture banking and government banking were created within the NBG to cater to the business needs of these segments more effectively. SBI introduced a series of new products and modied some existing products to capture a larger segment of the market. Express Credit provides easier personal loans to employees of government/quasi government undertakings. SBI also launched a foreign currency denominated card called SBI Vishwa Yatra Foreign Travel Card. A special SBU was created in Oct 2004 to focus on the SME segment and small enterprises credit cells were set up at 26 centres across India. Several tie-ups have been made with renowned companies for nancing their franchises in the areas of health, education, tourism, automobiles and petroleum. SBI has taken initiatives for promoting channel financing to meet the funding requirements of all the players in a value chain. To facilitate flow of credit to farmer borrowers, in FY05 the bank issued 1.1 mn Kisan Credit Cards (KCC) taking the total of KCCs issued to 3.65 mn. Further in Agriculture Banking, SBI funds micro finance projects through the intermediation of SHGs. In FY05, SBI nanced 169,025 SHGs taking the number of SHGs credit linked to 343,691 with a cumulative disbursement of Rs 13.1 bn.

A K Purwar Chairperson

Company Ranking
Income 7 Net Prot 6 Net Worth 6

Organisational Structure and Management

SBIs Central Board, comprising the Chairman, Managing Directors and other Directors exercises control over the management of SBI. SBIs top management consists of the Chairman, Group Executives of the National Banking Group (NBG), Corporate Banking Group (CBG), International Banking Group (IBG), Associates & Subsidiaries and five staff functionaries in charge of Finance, Credit, Human Resources, Technology and Inspection & Audit.

CEO Speak
SBI is a 200 years old organisation. It has grown to over 9,000 branches in India and has an overseas presence in 30 countries. Today, we are one of Indias top banks. In addition to banking, we have also ventured into merchant banking, mutual funds, credit cards, life insurance and factoring through our group entities. The Group has the objective of providing world class nancial services to more than 100 mn customers. We have introduced Business Process Reengineering initiatives specically to address the needs of present day customers both for products and services. We have plans to bring all our branches under CBS by Mar 2007. SBI has experienced growth in its retail banking owing to the swift advancement in IT, the developing macroeconomic environment and nancial market reforms. We have established an agro business unit, which will take into account the entire value chain of agriculture through backward linkages. We have also focused on nancing midcorporates, which is a growing sector. There has been a marked improvement in the asset quality of our credit portfolio. - A K Purwar, Chairperson

Corporate Banking Group

SBIs CBG consists of ve SBUs Corporate Accounts Group (CAG), Leasing SBU, Project Finance SBU (PFSBU), Mid-Corporate Group (MCG) and Stressed Assets Management Group (SAMG). CAGs loan portfolio constituted about 16.9% of SBIs total domestic non-food credit portfolio as on Mar 2005. In FY05, SBI-FAST, a niche cash management product generated a turnover of Rs 3,659.5 bn spread over 357 centres. Syndication generated a total business of

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Rs 163.8 bn. In PFSBU, a new wing for project finance called PF (Commercial Projects) was created to look after non-infrastructural projects with a minimum project cost of Rs 2 bn. In FY05, PFSBU entered into an MoU with LIC for jointly nancing big-ticket infrastructure projects. The MCG was created in Jun 2004. Seven MCG regional offices have been set up and the control of 28 large branches with high concentration of mid corporate business have been given to the group. In FY05, SBI sanctioned fund-based limits aggregating Rs 103.1 bn and non-fund based limits aggregating Rs 27.4 bn. MCG customers increased to 3,200 in Feb 2006.

credit cards of SBI Cards and Payment Services Pvt Ltd, (JV with GE Capital). SBI has other non-banking subsidiaries SBI Capital Markets Ltd, which provides merchant and investment banking services, SBI DFHI Ltd looks after trading of securities, SBI Factors and Commercial Services Pvt Ltd, provides domestic factoring services, Credit Information Bureau (India) Ltd serves as a central database for information on borrower accounts.

STATE BANK OF INDIA

D&B D-U-N-S 65-005-6914 Corporate Ofce State Bank Bhavan Madame Cama Road Mumbai - 400021 Maharashtra

Credit Information Bureau (India) Ltd (CIBIL)

CIBIL, jointly established by SBI, HDFC, Dun & Bradstreet Information Services India Pvt Ltd and Trans Union International Inc, serves as a central database for information on borrower accounts. In FY05, the consumer bureau had a database of over 14 mn borrower accounts in the names of individuals contributed by 25 members. These members access credit information reports from the CIBIL database for their credit decisions.

International Banking Group

IBG manages a network of 70 overseas ofces in 30 countries. SBI opened two new branches at Sydney and Muscat in FY05. In addition to its own offices abroad, SBI has four subsidiaries, namely, SBI (Canada), SBI (California), SBI International (Mauritius) Ltd and Indian Ocean International Bank Ltd and four JVs namely Nepal SBI Bank Ltd, Bank of Bhutan, Commercial Bank of India LLC Moscow and Sterling Bank Plc. SBI has offshore banking units in Mumbai and Kochi. SBI maintains comprehensive correspondent relationships with 539 international banks in 124 countries. Net prot from SBIs foreign branches increased by 29.6% in FY05. In FY05, the Treasury Management Group of IBG sourced US$500 mn by way of two syndicated loans of US$250 mn each at benchmark rates from the international syndicated loan market. SBI made an entry into the international bond market in Dec 2004 with its maiden issue under the Medium Term Note programme. Bonds for US$400 mn were issued for tenure of ve years at a trend-setting price of Libor+73.5 bps. In FY05, SBI launched two internet based products SBIEXPRESS REMIT and SBIEXPRESSMIDDLE EAST for US based NRI and Middle East customers respectively. Foreign offices of SBI went live on the new technology platform Finacle. The first treasury hub at Hong Kong commenced operations in May 2005. SBI has acquired three banks overseas one each in Mauritius, Kenya and Indonesia.

Information Technology
All branches of SBI are fully computerised. SB Group has a network of over 5,500 ATMs and ATM sharing arrangements with eight leading Indian banks. Internet Banking is available at 3,482 branches of SBI and CBS has been implemented in 2,757 branches. SBI has set up a WAN, known as SBI Connect, which provides connectivity to over 10,000 ofces of the Group.

Chairperson A K Purwar Managing Director & GE (CB) T S Bhattacharya Managing Director & GE (NB) O P Bhatt Directors M S Swaminathan A G Piramal S K Bery A Jhunjhunwala A C Kalita A Pal A Singh R Pandey P Goyal A K Jha S Gopinath

Operations
In FY05, SBIs deposits grew 15.2% to Rs 3,670.5 bn. Advances grew 28.1% to Rs 2,023.7 bn. SBIs share in aggregate deposits of all scheduled commercial banks in India stood at 18% including India Millennium Deposits (IMDs) and 16.8% excluding IMDs. SBIs market share in advances was 17%. Retail sector advances including loans to agriculture, small industries, business and personal segments accounted for 69.4% of total advances. Housing loans grew 46.7% in FY05 and constituted 53.9% of the loans to the personal segment. SBIs CAR stood at 12.5%. Net NPAs were 2.7% of net advances compared to 3.5% in FY04.

The Year in Review

For the year to Mar 31, 2005, total income increased to Rs 395.5 bn, up 3.9% over the previous years figure. Net profit increased 16.9% to Rs 43 bn. As per audited results for the twelve months ended Mar 31, 2006, the bank recorded an income of Rs 431.8 bn and a net prot of Rs 44.1 bn.

Cross Selling
SBI cross sells products of its subsidiaries through identied branches e.g. life insurance products of SBI Life Insurance Company Ltd (JV with Cardif SA), mutual fund schemes of SBI Funds Management Pvt Ltd (JV with Societe Generale Asset Management) and

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