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State Bank of India.

BSE: 500112 Sector: Financials
NSE: SBIN ISIN Code: INE062A01020
BSE 00:00 | 23 Jul 429.15 7.15






NSE 00:00 | 23 Jul 428.90 6.85






OPEN 423.40
VOLUME 753824
52-Week high 442.00
52-Week low 175.55
P/E 18.75
Mkt Cap.(Rs cr) 382,999
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 423.40
CLOSE 422.00
VOLUME 753824
52-Week high 442.00
52-Week low 175.55
P/E 18.75
Mkt Cap.(Rs cr) 382,999
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

State Bank of India. (SBIN) - Director Report

Company director report

I. Economic Backdrop and Banking Environment

Global Economic Scenario

The global economic growth has faced an arduous journey in 2020 withthe COVID-19 pandemic leading to significant loss of both lives and livelihood. Globaleconomy is expected to have contracted ~3.3% in 2020 against the growth of 2.8% in 2019.After the severe dent in the first half owing to lockdowns and restrictions economicmomentum picked up in the latter half of the year owing to the removal of restrictionsand unleashing of pent-up demand. The prompt measures taken by the governments and centralbanks have also prevented much deeper global recession. However concerns about debtsustainability have started to surface as countries spend as much as they can to protectthe vulnerable and to limit long-lasting damage to economies. Shifting market expectationscan bring challenges to countries with higher levels of external debt.

Meanwhile vigorous efforts of scientific community have helped inmaking multiple vaccines available globally. This has provided the necessary hope ofcoming out of this crisis. But the uneven distribution of vaccines globally is a matter ofconcern. Furthermore the new virus mutations and increasing transmission are otherfactors that are dampening global growth prospects. Against this backdrop IMF hasprojected a smart recovery of the world economy at 6% growth in 2021. The outlook forgrowth would improve if the production and distribution of Vaccines is accelerated isbetter co-ordinated around the world and gets ahead of virus mutations. This in turn wouldallow various restrictions imposed to be relaxed quickly and speed up economic recovery.Furthermore the outlook depends not only on the injection to infection ratio but also onthe effectiveness of economic policies in limiting the damage caused by this crisis.

The pandemic has brought with it certain lessons for the world tolearn. First is the necessity to improve health infrastructure. The countries which wereworst affected by the virus also faced acute health crisis. Equally important is theaccelerated adoption of technology and increased focus on digitalisation and automation ofvarious processes.

The quality and access to digital infrastructure has played a key rolein the pace of economic recovery. This is another area that will have to be focused by allnations going forward.

India's Economic Scenario

FY2021 was the most tumultuous year in the history of last 75 years ofindependent India as the COVID-19 pandemic wreaked havoc locally as well as globally.Indian economy contracted by 7.3% (as against 4.0% growth in FY2020 and 6.5% growth inFY2019) owing to nation-wide lockdown imposed in Apr-May of 2020 and its aftereffects inthe subsequent months.

Industrial sector GVA driven by the manufacturing sector emerged outof contraction in Q3 FY2021 and for the whole fiscal it declined by 7.0% as compared tothe contraction of 1.2% in FY2020.

The services sector stepped out of contraction in Q4 FY2021 with thephased unlocking of the economy but declined by 8.4% in FY2021 as against 7.2% growth inFY2020. Despite gaining some traction the contact-intensive services sector may take sometime to reach pre-Covid levels.

Growth in agriculture and allied activities is the only silver-liningin such a gloomy year. Agri GVA expanded by 3.6% in FY2021 due to sufficient access toinputs adequate and well-spread south-west and northeast monsoon rains sufficientreservoir levels and improved soil moisture. As per the Third Advance Estimates for2020-21 total foodgrain production in the country is estimated at record 305.44 milliontonnes an increase of 2.7% over the previous year. Foodgrains production has touchedanother record for the fifth consecutive year.

In FY2021 CPI inflation breached the upper tolerance band of 6% foreight consecutive months in the lockdown and post-lockdown period (Apr-Nov 2020) due to aseries of cost-push shocks: supply chain disruptions weather shocks higher crude oil andother commodity prices and higher taxes. The increase in petrol and diesel prices isshowing up in trade and transport costs taxi and auto fares and its second-round effectscould push-up the prices of goods and services further in a broad-based manner. Owing tothis the annual average CPI inflation was 6.2% for FY2021 as against 4.8% in FY2020.

The contraction in merchandise exports and imports during FY2021 is anindication of fragile situation of world trade and global demand. India's merchandiseexports (y-o-y) declined by 7.3% in FY2021 vis-a-vis a decline of 5.1% in FY2020 whileimports shrank by a whopping 18.0% in FY2021 compared to 7.7% contraction in FY2020. Thelarger decline in imports as compared to exports led to a current account surplus of 1.7%of GDP in April-December of FY2021 as against a deficit of 1.2% in April- December ofFY2020.

Reserve Bank of India (RBI) projects real GDP growth of 10.5% forFY2022 on the back of buoyant rural demand strengthening of urban demand stronginvestment demand and exports. The fiscal stimulus under AatmaNirbhar 2.0 and 3.0 coupledwith increased allocation for capital expenditure under the Union Budget 2021-22 willdefinitely accelerate public investment and crowd in private investment. However surge ininfections new mutants partial lockdowns high nonoil commodity prices and globalfinancial market volatility impart downside risks to the growth.

The outlook for inflation will depend upon plethora of factors. Whilelingering supply chain disruptions rising global crude oil prices and strongerpass-through of input costs could push up headline inflation there is also a probabilityof softer international crude oil prices on the back of a weaker than anticipated globaldemand bountiful food grains production and effective supply management. Preliminaryestimates indicate that India will have normal monsoon this year (third time in a row).

With robust services exports and remittances India is expected to seea current account surplus in FY2021. With strengthening US recovery leading to capitaloutflows Rupee is expected to see depreciation pressures. However the external sectormetrics remain sustainable as RBI has ample forex reserves to defend the currency whichis not expected to see a speculative attack as the weakness stems only from currentaccount deficit and less capital flows.

Banking Environment

The banking sector saw tepid demand for credit in H1FY2021. Howevercredit offtake improved in H2 with the momentum picking up beginning October andregistering a growth (financial year basis) since November. As per the provisional datareleased by RBI for FY2021 ASCBs credit has declined to a 59-year low of 5.6% comparedto 6.1% growth in FY2020. On the other hand deposit growth remained robust and grew by11.4% in FY2021 compared to 7.9% growth in FY2020 reflecting precautionary saving in theface of high uncertainty. Further RBI's report on ‘Quarterly statistics on Depositsand Credit of SCBs' indicates that credit by Public Sector Banks (PSBs) and privatesector banks recorded 3.6% and 9.1% growth respectively whereas lending by foreign banksdeclined during FY2021. The slowdown in SCBs' credit growth during FY2021 has beenbroad-based across all major sectors except agriculture.

According to data on the sectoral deployment of bank credit for March2021 credit growth to Agri & and Allied activities has accelerated to 12.3% in March2021 (4.2% a year ago) the highest since April 2017. Credit growth to industrydecelerated marginally to 0.4% (0.7% a year ago) mainly due to credit to large industrieswhich contracted by 0.8% in March 2021 (as compared with a growth of 0.6% a year ago).This is primarily on account of large industries raising resources from non-bank sources.Credit growth to the services sector decelerated to 1.4% during FY2021 from 7.4% in theprevious year primarily driven down by sharp deceleration in credit growth to NBFCs aftera spurt in the preceding year and contraction in credit to professional services. Furtherpersonal loans accounted for one fourth of total bank credit and continued to recorddouble-digit growth of 10.2% compared to last year growth of 15.0% led by housing andother personal loans.

To give support to the market and economy during pandemic RBIannounced several liquidity measures and also reduced the key policy repo rate by 115 bpsto 4.0% and CRR by 100 bps to 3.0%. Thus the downward interest rate scenario hascontinued with decline in deposit and lending rates aided by large surplus liquidity theimplementation of the external benchmark linked lending rates and subdued credit demand.If we look at SCBs the lending rate (weighted average lending rates on fresh loans) hasdeclined by 79 bps (PSBs: 120 bps Pvt Banks: 22 bps) and weighted average domestic termdeposit rate has reduced by 100 bps (PSBs: 89 bps Pvt banks: 101 bps) during FY2021.

The current pandemic has highlighted the importance of maintainingbusiness continuity in times of complete absence of physical interaction and building arobust digital banking infrastructure. The trend for mobile banking is encouraging. FromRs. 3.6 lakh crore in April 2020 the mobile banking payments have increased to Rs. 9.3lakh crore in January 2021 fuelled by COVID panic led lockdown. Similarly transactionsin UPI have increased from Rs.1.5 lakh crore in April 2020 to Rs. 5.0 lakh crore in March2021 indicating an increase of 145%. The rapid rise of UPI has been due to features likeround the clock availability single application for accessing different bank accountsuse of Virtual ID which is more secure and requires no credential sharing. This showsthat going forward too banks will have to focus on providing safe secure and easy touse digital applications for the expansion of their businesses and better customerservice.


The last financial year was exceptional by all standards in therecorded history of banking sector. The spread of the virus and subsequent lockdown inFY2021 was testing time for the Bank. The Bank's banking operations were sustained despiteall odds.

FY2021 was practically under lockdown with progressive opening byFebruary 2021. This naturally had taken a toll on the economy. The sudden loss in domesticdemand had its impact on demand for credit. For most of the year the deposit growthoutpaced the credit growth reflecting the sudden drop in discretionary consumption. Thishas put sustained pressure on deposits rates which have trended southwards.

The pandemic has also brought to light latent supply side inflationarytrend which has now become visible in price indices. The recent minutes of the meeting ofMonetary Policy Committee has therefore highlighted this as a risk that needs monitoringand warrants concrete actions.

Besides the COVID-19 pandemic FY2021 also had to contend with otherlocal disasters such a locust attack affecting northern states outbreak of bird flu andfloods in eastern part of the country.

The GDP growth for FY2022 has been projected at 10.5% (RBI) as comparedto contraction of 7.3% in FY2021. However the current financial year has begun withsecond COVID-19 wave and experts have informed that virus strain has mutated in India.Accordingly quick immunisation of working population will be the most optimal scenariowhich will impact the growth outlook. There is considerable uncertainty on how the demandwill pick up in this financial year - notably it is difficult to predict if capitalformation will see sustained recovery.

In this backdrop the Bank's business needs careful assessment. Thebusiness continuity plans chalked out in FY2021 have worked well. Bank's support underAatmaNirbhar Abhiyan has been satisfactory. But with second wave more detailed planningwill be required. Banks have created contingency buffers to cover losses over and abovewhat was provided. The impact on asset quality of the banks due to second wave needs to bereassessed in respect of possible unexpected losses over and above what has been provided.Bank must resort to recently notified pre-package insolvency route to address stress inMSME segment.

However as noted last year the COVID-19 pandemic has also openedopportunities for the banks. Reordering of global supply chains presents uniqueopportunity to India to position itself as manufacturing hub to meet global demand aproposition that continues to hold good. Rapid adoption of digital technology as seen inresponse to the COVID-19 has benefited the Bank considerably last year.

In a nutshell the outlook on Bank's business and the economy will beconditional on time frame by which the virus is completely eliminated and normalcy isrestored. The headroom for another fiscal package has narrowed down and potential revenuegeneration has sharply dropped by 400 basis points as noted by Chairman of FinanceCommission. Thus for the Bank it is imperative that business procedures keep adapting tonew operating environment.

II. Financial Performance

Net Profit and Operating Profit

The Net profit increased by 40.88% to Rs. 20410.47 crore in FY2021from Rs.14488.11 crore in FY2020. The Operating Profit of your Bank for FY2021 increasedby 5.02% to Rs. 71554.15 crore from Rs. 68132.61 crore in FY2020. (Including exceptionalitem of Rs.1539.73 crore in the FY2021 and Rs. 6215.64 crore in FY 2020).

Net Interest Income

Net interest income increased by 12.87% to Rs.110710.00 crore inFY2021 from Rs. 98084.82 crore in FY2020. Total interest income increased from Rs.257323.59 crore in FY2020 to Rs. 265150.63 crore in FY2021 registering a growth of3.04 %.

Total interest expenses declined from Rs.159238.77 crore in FY2020 toRs.154440.63 in FY2021. Interest expenses on deposits during FY2021 recorded a declineof 3.37% compared to the previous year.

Other Income

Other income (excluding exceptional item) increased by 7.57 % to Rs.41956.64 crore in FY2021 from Rs. 39005.84 crore in FY2020

Operating Expenses

Operating expenses of the Bank increased by 9.95% to Rs. 82652.22crore in FY2021 from Rs. 75173.69 crore in FY2020.

Provisions and Contingencies

Total provision and contingency decreased by 4.66% from Rs. 53644.50crore in FY2020 to Rs. 51143.68 crore in FY2021. Major provisions made in FY2021:Provision of Rs. 27244.35 crore for non- performing assets (as against Rs. 42775.96crore in FY2020) and Investment depreciation of Rs. 3014.50 crore (as against Rs. 538.55crore in FY2020) was made during the year.

The Provisioning to Gross Non-Performing Assets ratio (including AUCA)of the Bank as on 31st March 2021 is 87.75% (Previous Year 83.62 %).

Assets and Liabilities

Total assets of your Bank have increased by 14.76% to Rs. 4534429.63crore as at the end of March 2021 from Rs. 3951393.92 crore at the end of March 2020.During the period the loan portfolio increased by 5.34% to Rs. 2449497.79 crore fromRs. 2325289.56 crore. Investments increased by 29.11 % to Rs.1351705.21 crore fromRs.1046954.52 crore. A major portion of the investment in the domestic market was ingovernment securities.

Your Bank's aggregate liabilities (excluding capital and reserves) roseby 15.09 % to Rs. 4280554.44 crore as on 31st March 2021 from Rs.3719386.49 crore as on 31st March 2020. The deposits rose by 13.56% and stoodat Rs. 3681277.08 crore as on 31st March 2021 against Rs. 3241620.73 croreas on 31st March 2020. The borrowings increased by 32.62 % to Rs. 417297.70crore as at the end of March 2021 from Rs. 314655.65 crore as at the end of March 2020.

Reserves and Surplus

An amount of Rs. 6123.14 crore (as against Rs. 4346.43 crore inFY2020) was transferred to Statutory Reserves. An amount of Rs.1465.12 crore (as againstRs. 3985.84 crore in FY2020) was transferred to Capital Reserves. An amount ofRs.1928.20 crore in FY2021 (as against Rs.1119.88 crore in FY2020) was transferred toInvestment Fluctuation Reserve.


Your Bank has declared a dividend of Rs. 4.00 per share @ 400% for theyear ended March 31 2021.

Progress of

Implementation of IND AS

Steering Committee headed by Managing Director (Stressed Assets Risk& Compliance) has been monitoring implementation of Ind AS in the Bank. Your Bank isalready geared up for implementation of Ind AS. However implementation of Ind AS in Bankshas been deferred by RBI until further notice.

III. Core Operations

1. Retail & Digital Banking Group

Retail and Digital Banking is the largest business vertical of theBank with 99.45% of total branches and 98.04% of total human resource of the Bank. TheGroup comprises of eight strategic business units which drive the largest branch networkacross the country. Your Bank is committed to customer delight at all its branches. Theever-evolving customer preferences especially of the younger population coupled withincreased focus on enhanced customer convenience are transforming the retail bankinglandscape.

Your Bank's customer base is steadily increasing across the countrymaking Retail Banking the most prolific segment of your Bank both in terms of depositmobilisation as well as extending customised credit. Your Bank continues to be the largestHome Loan provider in the country and the largest dispenser of Education Loans whichdemonstrates its unflinching commitment to serve the society at large.

Your Bank continues to be at the forefront in digital banking domainwith a steady stream of technology-driven innovations. It has a multi-channel deliverymodel which offers its customers a wide choice to carry out these transactions at anytime and at any place. Your Bank has increased its offerings across various channels -digital mobile ATM internet social media and branches.

YONO is our flagship mobile banking and lifestyle app a one-stop shopoffering not just financial services but also a gamut of investment insurance andshopping solutions. In addition it also offers YONO Krishi which is a comprehensive multi- lingual platform for agriculture segment customers offering simplified finance (KCCReview/Agri Gold Loans) advisory / market intelligence related services (Mitra) as wellas market linkage through Online Market Place (Mandi). YONO has crossed many milestoneswith 79.60+ million downloads and approximately 37.10+ million registrations as of 31stMarch 2021.

Your Bank is committed to creating an environment of increased riskawareness at all levels. It also aims at constantly upgrading the appropriate securitymeasures including cyber security processes to ensure mitigation of various risks.

A. Personal Banking 1. Home Loans

FY2021 saw a massive disruption in the real estate market affectingthe Home Loan business due to the COVID -19 pandemic and stringent lockdown measures. Thepandemic had slowed down the pace for almost first half of the year and later due tovarious reviving economic measures announced by the Central and State Governments thereal estate market started regaining ground in the second half of FY2021.

Your Bank has crossed a historic landmark of Rs. 5 trillion ('5 lakhcrore) of home loan business the first vertical in the Bank to touch the magic figure.The share of the home loan portfolio as a percentage of Domestic advances now stands at23.10% and 37% of whole Retail advances of your Bank.

We have sanctioned and disbursed over Rs.1 trillion under home loansduring FY2021 in midst of the COVID-19 pandemic.

Market Share: State Bank of India continues to be the market leader.Your Bank's market share in individual mortgages is at 34.53% (Mar'21) amongst all ASCBand at 21.79% (Sept'20) among all the players including HFCs (improved by 70 bps overMar'20). Your bank has nearly 41 lakh home loan customer accounts and is determined to addmore in the coming times.

Affordable and PSL: Your bank's

Affordable Housing contributes 59.27% of its total home loan portfoliowhile PSL stands at 33.19%.

CNA for PMAY subsidy: As the Central Nodal Agency (CNA) for PMAY-CLSSscheme your bank has processed 2.20 lakh claims up to 31st March 2021aggregating to Rs. 4816 crore of subsidy amount leading to an income of Rs. 51 crore foryour Bank. Additionally your Bank has been nominated as CNA by MoHUA the only commercialbank in the country (other CNAs are HUDCO and NHB).

Asset Quality: Maintaining a healthy asset quality was a challenge amidCOVID-19 pandemic that has led to unprecedented economic fall-out in the country. Almostevery sector was impacted due to the pandemic. Incessant follow up soft reach out callsto customers and proactive measures initiated by your Bank resulted in Home Loan NPAsfalling below March 2021 level to 0.58%.

Based on RBI's COVID-19 relief measures of moratorium and restructuringof retail loans including home loans your Bank has issued various guidelines to providerelief to its home loan customers. In the first phase 28.26 lakh home loan borrowers weregranted moratorium. In the second phase the moratorium was extended to 34.04 lakhaccounts. An online portal was launched for borrowers to apply for restructuring.

Initiatives: Your Bank has always been instrumental in customising anddeveloping sustainable creative solutions and continuously striving towards making SBIthe ‘No. 1 Choice of Millennial' for home loans. In this direction a customised‘Special Top Up' scheme was launched for existing home loan customers to help themtide over financial crisis during COVID-19 pandemic.

End-to-end digitisation of entire home loan journey is under advancedstage of development and is likely to be rolled out shortly which is aimed to ensureseamless pre- sanction and post-sanction services. It will not only ensure growth butalso bring in more efficiencies in product delivery process of home loans and customerdelight.

Your Bank has developed in-house contactless digital platforms such asCRM YONO OCAS which are being promoted extensively as resource tools to maximise homeloan business and boost up our market share further.

Tie-ups with Builders: Amid burgeoning competition in the home loanmarket onboarding maximum projects under Builder Tie-Up (BTU) provides much- neededleg-up to your Bank not only for accelerating home loan business but also for sourcingquality and less-risky proposals besides considerably improving the Turn Around Time(TAT). Your Bank has so far approved 7329 projects (RERA approved) with aim to grow 20%YoY in the next two years in Builder Tie Up projects.

2. Auto Loans

In FY2021 your Bank's car loan market- share in total new car saleshas jumped to 16.5% as against 14.4% in FY2020. While due to COVID-19 Pandemic industrysales were affected; your Bank took various initiatives to maintain volumes and grew itsportfolio YOY by 5% in the current fiscal. A vast product range covering all types ofvehicles was made available to both existing and New to Bank (NTB) customers throughmultiple channels such as Branches YONO Dealers and CLPs. Your Bank's YONO car loancomes with benefits of 0.25% concession in rate of interest and NIL Processing Fee tocustomers which is an additional feature provided by your Bank. Your Bank continuedhelping in upgrading the living standards of its customers by providing Auto Loans atcompetitive rates thereby making "owning a car" an affordable proposition.These measures have helped your Bank to grow its loan portfolio to reach a level of 76322crores as of 31st March 2021.

3. Education Loans

Education is the key prerequisite for creating human capital as ithelps in developing skills and productive human resources. Prior to 4thSeptember 2020 education loans of up to Rs.10 lakh outstanding was considered as PrioritySector Advance. With RBI's revised guidelines w.e.f 4th September 2020 loanswith limit up to

'20 lakhs are now considered as Priority Sector Advances. Your Banktakes pride in being the largest education Loan provider in the country with market shareimproving to 29.52%. Your bank has helped 47959 meritorious students to realise theirdreams by providing financial assistance to the tune of Rs. 5980 crore during the year.Out of this 39% of the loans were extended to girl students (increased from 35% inMar'20). To broaden the scope of education loans book quality business and enhancecustomer satisfaction your Bank has taken following steps:

• Shortlisted a greater number of toprated premier and reputedinstitutions taking total numbers to 217 for extending Education Loans under the ScholarLoan scheme with relaxed norms and concessional interest rates.

• Penetration through our Flagship product "Global Ed-vantageEducation Loans" for studies abroad improved through extension of Door-step servicesthrough Education Loan Counsellors (ELCs) at select cities (We could sanction 1397 casesamounting to Rs. 522 crore through this service).

• To ensure better tracking of the loan applications and fastersanctioning of loans your Bank's Loan Origination System (LOS) was integrated with VidyaLakshmi Portal (VLP) of the Government of India.

4. Personal Loans

Personal Loans both secured and unsecured are amongst the mostpopular products in your Bank and your Bank is a leader in this market segment. Your Bankis aggressively catering to the needs of salaried class (both government and private)pensioners and self-employed/ other customers. Your Bank is now extending loans tocustomers with salary accounts at other Banks also through SBI Quick Personal Loans (CLPPlatform). As on 31st March 2021 Personal loan portfolio (Xpress credit andPension loan) reached a level of Rs. 223329 crore with a YTD growth of 33.89% ('56532crore). The growth is contributed primarily by the flagship product Xpress credit to thetune of Rs. 51367 crore (YTD growth 36.32%). During this financial year your Bank hasprovided personal loans (Xpress credit and pension loan) amounting to Rs.126104 crore tomore than 31.13 lakh customers which includes digital loans of Rs.16569 crore (PAXC -Rs. 9402 crore Insta Credit - Rs. 5663 crore PAPNL - Rs. 824 crore And Insta Pension -Rs. 680 crore).

Bank Launched a new product "SPL PAPL scheme" in May'20 forcustomers who were in urgent need of money wherein amount equal to 3 months' salary wasoffered as an advance and was available to the customers till Aug'20. We have extended247559 loans amounting to Rs. 2953 crore under the product.

5. Consumer Durable Loans for e-Commerce Purchase

Your Bank has launched two end-to-end digitised loan products forpurchase of consumer durables:

(i) Online EMI loans for e-Commerce.

(ii) POS EMI Loans for e-Commerce. At present the products are beingoffered to around 1 crore eligible customers.

EMI for Online e-commerce product facilitates your Bank's pre-selectedcustomers to purchase consumer durable goods on EMI from online shopping portals likeFlipkart and Amazon. Your Bank's efforts are on to rope in other major online aggregatorsfor the benefit of its customers. Additionally your Bank has developed POS enabled EMIfacility for the benefit of pre-selected customers holding the SBI Debit cards forpurchasing consumer durable goods from the approved shops/ mall/stores/show rooms.Checking of EMI loan eligibility by sending SMS "DCEMI" to 567676 is availablefor Customer convenience.

6. Liability and Investments Products

The overall CASA Deposits of your Bank has grown from Rs.1410981crore as of March 2020 to Rs.1646974 crore as of March 2021 registering a growth ofRs. 235993 crore (16.73%) YoY. The CASA Ratio improved from 45.16% as of March 2020 to46.13% as of March 2021. P-Domestic Deposit has grown from Rs. 2103164 crore as ofMarch 2020 to Rs. 2367641 crore as of March 2021 registering a growth of Rs. 264477crore (12.57%). Your Bank has launched Floating Rate Bulk Term Deposit with interest ratelinked to external benchmark viz. Repo Rate.

(a) Doorstep Banking Services

In a move towards customer convenience and ease of access to bankingservices your Bank is extending Doorstep Banking Services for Cash Deposit CashWithdrawal Pick up of Cheque Book Requisition Slip Pick up of Cheques for Collection /Clearing Life Certificate through Jeevan Pramaan Pick up of IT/ Govt/ GST Challan withCheque Delivery of Statement of Account Term Deposit Advice and TDS & Form 16Certificate through Agents to all customers at top 100 banking centres. Senior Citizens ofmore than 70 years of age and differently abled persons are also extended Doorstep BankingServices at all centres PAN-India.

7. Salary Package Accounts

Your bank continued to focus opening Salary Package Accounts andproviding personalised services to employees of Corporates Defence Police RailwayCentral and State Governments through Corporate Salary Relationship Managers. The totalSalary Accounts customer base as on March 2021 reached a level of 165.78 lakh withaddition of 3.74 lakh new Salary Package customers during FY2021.

8. Digital Personal Loan Offerings

While offering products on multiple platforms for portfolio growth withhigher profit margins your Bank has kept in mind the customer's convenience with Ease ofBanking and offered following variants through YONO

i) PAPL (Pre-Approved Personal Loan)

ii) PAXC (Pre-Approved Xpress Credit)

iii) PAPNL (Pre-Approved Pension Loan)

iv) INSTA Top-up for Xpress Credit

v) Insta Top-up for Pension Loan

Customers can avail the offerings on 24X7 basis without any physicaldocumentation and branch visit.

• The Bank has sanctioned 12.20 lac digital loans involvingRs.19607 crores during the current FY as on Mar'21 out of which two most popular productsXpress Credit and Xpress Credit Top up loans contributed Rs.15065 crores.

• Checking of PAPL loan eligibility by sending SMS"PAPL" to 567676 introduced.

• Bank is using YONO as well as CLP (GOI) platforms for sourcingof proposals along with in-principle sanctions.

9. NRI Businesses

As on 31st March 2021 your Bank has around 36 lakh NRICustomers who are being served through 366 dedicated Specialised NRI Branches / NRIIntensive Branches in India Foreign Offices in 32 countries 233 Global Banks asCorrespondent Banks and tie-ups with 50 exchange houses and 6 Banks (in the Middle East)to facilitate remittances. In order to provide a one stop service to NRI Customers‘Global NRI Centre (GNC)' has been set up at Ernakulam for all nonfinancial servicesof your Bank.

State Bank of India is the leader in NRI Banking space in India with amarket share of 22.18% (as of March 2021). The NRI deposit base stands at US$ 31.47Billion (as on March 2021). The Indian diaspora spread across the globe has alwaysreposed immense trust in us.

Your Bank has launched the following products / services in FY2021 forthe benefit of its NRI clientele:

• Delivery of automated advice on registered email address on T+1basis for all new / rolled over STDR/TDR/ FCNR(B) deposits.

• Missed Call Banking Services through SBI Quick App. Customerscan get Account balance as well as mini statement by just giving a missed call from theirregistered mobile numbers.

• Financial Transactions (NEFT/RTGS) have been extended to NRICustomers in YONO Interface.

10. Precious Metals

(i) Sovereign Gold Bonds:

Sovereign Gold Bond Scheme (SGB) was introduced by the GOI duringFY2016 with the intention of promoting Digital Gold instead of Physical Gold for theinvestors. Your Bank during the FY2021 mobilised 3319 kg gold ('1630.17 crore) underthe scheme which is the highest ever in a fiscal since inception of the scheme.

(ii) Gold Monetisation Scheme:

With the objective of mobilising gold which is lying idle withhouseholds and institutions the GOI introduced Gold Monetisation Scheme (GMS) during theyear 2015-16. During FY2021 your Bank has mobilised 2341 kg gold bringing thecumulative mobilisation to 15553 kg.

(iii) Other Gold Business:

In addition to mobilising gold under GMS and selling SGB your Bank isalso a primary player in the field of Bullion Banking. It makes available Metal Gold Loanto jewellers engaged in manufacturing of gold ornaments for the domestic and exportpurposes.

Your Bank during FY2021 has extended Metal Gold Loans of 16332 Kg.

Your Bank is also engaged in selling Wholesale Gold tojewellers/Traders. During the year the Bank has sold 2931 kg gold under the "Saleof Gold' Scheme.

11. Gold Loan

Your Bank offers general purpose personal loan against pledge of GoldOrnaments. During FY2021 the portfolio witnessed a YTD growth of 465% thereby reaching alevel of Rs. 20987 crore as on 31st March 2021 with Gold loan customer base at1 million.

Your Bank has also made available personal Gold Loans for SBI's HomeLoan customers by way of a product named "Realty Gold Loan" for meeting marginrequirements project cost escalation and registration charges.

12. Wealth Management Business

SBI Wealth provides comprehensive Investment & Insurance Solutionsand Banking Services to both Affluent and High Networth Individuals. Our open architectureproduct platform leveraging our tie-ups for Mutual Funds Portfolio Management Servicesand Bonds helps clients in meeting their financial requirements.

Bank's Wealth Management Services are offered at 69 Centres through 161Wealth Hubs 4 e-Wealth Centres and a dedicated Global e-Wealth Centre for NRIs at Kochi.

SBI Wealth has shown exponential growth in terms of Client Acquisitionand Assets Under Management during the year under review. The Number of Clients increasedby 93% from 132354 in March 2020 to 255196 in March 2021. Additionally the AUMincreased by 90% from Rs.109061 crore in March 2020 to Rs. 207167 crore in March2021. The investment AUM registered 89% growth during the FY2021 which stood at Rs. 8592crore. We have processed 36000 SIPs with a value of Rs. 40 crore and the number ofInvestment Active Clients increased to 24812 in March 2021 over 14056 clients in March2020.

Despite the pandemic SBI Wealth focused on continuous and constantClient Contacts by our Wealth Sales Team to keep up the Confidence and Trust of Clients.We have achieved a Client Contact Ratio of 97% as of March 2021. SBI Wealth introduced ane-Business Card "Happy to Serve You" which enabled Wealth Sales Team toconnect and render efficient Service Delivery for Wealth Clients. Our teams remainconnected through Voice/ Video Calls to assure Clients all assistance in banking andInvestment Services during the fiscal.


As on ATMs Kiosks ADWMs Tota
31st March 2021 49380 # 13237 62617
31st March 2020 45279 # 13276 58555
31st March 2019 50757 # 7658 58415
31st March 2018* 51616 # 7925 59541
31st March 2017 42222 986 6980 50188

# Kiosks are scrapped and not in use * Merged


Your Bank has one of the largest ATM Networks in the world with 62617ATMs including Automated Deposit and Withdrawal Machines (ADWMs) as on 31stMarch 2021. In order to provide 24x7

cash deposit and withdrawal facility your Bank has installed 13237ADWMs.

Nearly 19% of the financial transactions of your Bank are routedthrough ATMs/ ADWMs. With a market share of 29.32% (as per RBI Data as on March 2021) inATM Network in India it transacts 34.02% of the Country's total ATM transactions. On anaverage over 1.12 crore transactions per day are routed through your Bank's ATM Network.

In order to strengthen the security of ATM cash withdrawals againstskimming cloning theft of cards etc. by fraudsters your Bank introduced OTP based cashwithdrawal facility for transactions above Rs.10000 between 8 PM to 8 AM w.e.f. 1stJanuary 2020. This OTP based cash withdrawal facility now stands extended to 24x7 for cashtransactions of Rs.10000 and above from 18th September 2020.

With the objective to make the ATMs more secure your Bank hasinstalled MultiVendor Software (MVS) and End Point Security (EPS) covering implementationof BIOS Password disabling USB Ports upgraded Operating System EMV Card Readersanti-skimming devices and other software making all ATMs/ADWMs compliant of variouscontrol measures mandated by RBI.

To ensure safety of ATMs as well as the customers coverage undere-Surveillance is being enhanced. Your Bank has covered around 43200 ATMs undere-Surveillance as on 31st March 2021 and eventually all ATMs are expected tobe covered under e-Surveillance by 30th September 2021.


Barcode based Passbook Printing Kiosks

Your Bank has installed 18073 SWAYAMs (Barcode based Self passbookprinting kiosks) deployed across 15857 branches. These include 8181 kiosks in ATM rooms/e-lobbies/Through the Wall (TTW) available outside branch banking halls for extendedhours. On a monthly basis around 3.50 crore passbook printing takes place on SWAYAMkiosks.

3. Green Channel Counter (GCC)

Your Bank has deployed GCC terminals at almost all the retail branchesfor transactions through Debit Cards for promoting Green Banking. Transactions facilitatedare - cash withdrawal cash deposit funds transfer within SBI accounts Balance EnquiryGreen PIN generation and PIN Change and Mini Statement.

4. Green Remit Card (GRC)

The GRC is a cash deposit card through which funds can be deposited toa predefined account of Your Bank by using GRC in GCC/CDMs/ADWMs. Cash deposit facilitythrough GRC is available 24*7 at CDM/ADWM and is useful especially for migrant workers.

5. Cheque Deposit Kiosk (CDK)/Smart CDK

The CTS enabled Self Service Cheque Deposit Kiosks (CDK) facilitatecustomers to deposit their CTS Cheques in a hassle- free manner. The Kiosks have beendeployed at 2500 branches where outward clearing cheques are more than 50 per day. Areceipt with scanned copy of cheque along with details such as cheque number payee'saccount number is generated for the depositor. Smart CDK functionality in YONOapplications facilitates customer to deposit cheques in bulk (10 cheques at a time) fromthe convenience of their location and deposit cheques in CDK through reference number.

6. Customer Value Enhancement

Your Bank is the Corporate Agent of SBI Life Insurance Co. Limited andSBI General Insurance Co. Limited and has Distribution Agreement with SBI Mutual Fund SBICards & Payment Services Private Limited and SBI Cap Securities Limited fordistributing their products. Your Bank also distributes

mutual fund products of UTI Mutual Fund Tata Mutual Fund FranklinTempleton Mutual Fund L&T Mutual Fund ICICI Mutual Fund and HDFC Mutual Fund. Inaddition to this all branches are authorised for opening NPS accounts under NationalPension System. The details of Commission earned are as under:

JVs Actuals YTD March 2020 Actuals YTD March 2021 % Change YOY
SBI LIFE 1118 1240 11%
SBI MF 375 464 24%
SBI GENERAL 315 327 04%
SBI CARDS 212 135 -36%
SSL 05 03 -40%
NPS 05 06 20%
TOTAL 2030 2175 07%

Initiatives and successes for FY2021 are mentioned below:

SBI Life

SBI Life Insurance ranks No.1 in private Life insurance industry underindividual rated premium since FY2018. The protection share for State Bank of India inIndividual Rated Premium has gone up from 6.3% to 8.6% as on 31st March 2021.Digital sourcing rate of SBI Life Banca is 99.6%.

SBI Mutual Fund

SBI continues to be No. 1 Mutual Fund Distributer having crossed amilestone of Rs.1.10 lakh crore in Asset Under Management (AUM) as on 31stMarch 2021. Further SBIMF leads the ranks amongst AMCs and has crossed a milestone of Rs.5.04 lakh crore in AUM. The digital mobilisation of business is providing ease tocustomers as well as operating staff. Almost 80% of SIPs are being mobilised throughdigital mode.

SBI General

The current year has witnessed significant migration of transactionsover digital channel. The preferred products like PAI and Health Insurance have been seena good traction this year. Personal Accidental Insurance is fully migrated on your Bank'sYONO Digital Platform.

SBI Card

Your Bank is leveraging the technology for customer segmentation thathas resulted in sourcing of over 1.4 million cards through your Bank's Branches in currentyear. Card

issuance through digital journey has been received very well bycustomers and is on rising trend. Service portal for addressing customer queries on realtime basis has been made available at branches enhancing customer experience for creditcard.


Your Bank has upgraded its systems to provide an end-to-enddigitisation for instant NPS account opening. Additionally your Bank continues to enjoyits dominance with market share of 22%.


During FY2021 your Bank has taken initiative of focusing on SVPaccounts sourcing in SSL.

7. Internet Banking and E-Commerce

YONO is our flagship mobile banking and lifestyle app a one-stop shopoffering not just financial services but also a gamut of investment insurance andshopping solutions. With a Digital-First approach it is part of our continuous endeavourto provide innovative digital banking solutions to all our customers across the country.

The platform also offers YONO Krishi which is a comprehensivemulti-lingual platform for agriculture segment customers offering simplified finance(KCC-Review/Agri Gold Loans) advisory / market intelligence related services (Mitra) aswell as market linkages through the Online Market Place (Mandi).

YONO has crossed many milestones with 79.6+ million downloads andapproximately 37.10+ million registrations till 31st March 2021 with anincreasing momentum in adoption and progressively higher user engagement along withexponential business growth. The key highlights achieved during the year are as under

Key Performance Highlights of YONO:

• App Adoption: The registered user base of the YONO grew by ~ 75% from 21.2 million (March'20) to 37.10 million (Mar' 21). The App rating on Android is3.9641 and 2.6 on iOS.

• Customer Onboarding: Significant momentum was observed in newcustomer onboarding with ~94% of eligible savings accounts being opened through the YONOplatform. 51.81 lakh of Digital Savings Accounts were opened during the FY2021.

• Digital lending: 13.57 lakh Pre

Approved Personal Loans (PAPLs) were opened in FY2021 amounting to Rs.21268 crore.

• YONO Krishi: YONO Krishi a comprehensive multi-lingual platformfor agriculture segment customers launched in 2019 is an initiative by the Bank to makeour farmer customers future ready by offering them constant digital innovations pertainingto their agricultural needs. As on 31st March 2021 29.42 Lakh YONO Agri GoldLoans amounting Rs. 45701 crore have also been sanctioned through YONO Krishi.

• Simplified KCC Review through YONO process was launched inAugust 2020 wherein the customer can get his/her KCC account reviewed online in apaperless presence less manner without visiting branch. During FY2021 2.89 lakh KCCaccounts with aggregate limits of Rs. 4972 crore have been reviewed through the YONOKrishi- online process.

• Online marketplace: As on Mar'21 100+ merchant partners werelive on the B2C Market Place platform (including Mitra and Mandi) witnessing 11.92 lakhtransactions amounting to Rs. 641 crore worth of Gross Merchandise Value in FY2021.

• Cross sell: The non-banking financial services product suitei.e. insurance mutual funds etc. achieved an all-time high performance during thefiscal. 3.85 Lakh SBI Credit cards were sourced during the year through YONO. Gross SBIMFinvestments stood at Rs. 2434 crore. Approximately 29.41 lakh Personal Accident Insurance(PAI) policies were sold during FY2021.

C. Small and Medium Enterprises

Your Bank is pioneer and market leader in SME financing. With oversixteen lakh customers the SME portfolio of Rs. 243191 crore as on 31.03.2021 accountsfor nearly 10.40% of your Bank's total advances. State Bank of India has always held SMEsas an important segment considering the role being played by them in the Indian economyin terms of their contribution to manufacturing output exports and employment generation.Being committed to providing Simple and Innovative Financial Solutions your Bank'sapproach in driving SME growth rests on the following three pillars:

a) Customer Convenience

b) Risk Mitigation

c) Technology based digital offerings and process improvements

1. Customer Convenience

With a view to build and sustain the momentum for transforming Indiayour Bank has created the highest no. of touch points in terms of branches and othermodes. With a view to enhance ease of business for the Small and Medium Enterprises StateBank of India modified its existing delivery model of Small and Medium Enterprises Centre(SMEC) and created Asset Management Teams (AMTs) to maintain end to end relationship withthe customers for loans up to Rs. 50 lakh. The SMECs have also been strengthened in termsof manpower which has resulted in improvement in the service levels. Loans above Rs.50.00 lakhs are being handled by Relationship Manager SME so as to have better connectwith the Customers. As on 31.03.2021 1791 RMs (SME) are functioning PAN India.

With a view to focus on improving the connect with the Customers and tostrengthen SME Business we have revisited the SME structure in the Bank wherein 80Assistant General Managers

(SME) have been posted across all Zonal offices. This has given a gooddirection to our efforts and has started yielding results with many customers expressingsatisfaction on the improved connect. Your bank has 670 dedicated SME Intensive BranchesPAN India.

2. Digital Offerings

Your Bank is leveraging technology in every aspect of the valueproposition from business designing products streamlining process improving delivery tomonitoring. Furthermore it has taken several initiatives to build SME portfolio in a riskmitigated manner and has implemented significant changes in (i) Product suite (ii)Process

(iii) Delivery for ensuring Ease of Banking.

Loan Life-Cycle Management

Online Loan Application and Online Lead Status: Your bank is hosting anonline loan application and tracking facility for MSME borrowers on the corporate website.A CRM ID is generated against customer's loan application submitted online or offlinethroughCustomer Relationship Management (CRM) application which is sent tocustomer's mobile number. Customer can track his loan application through this CRM IDand mobile number on the online portal after successful OTP validation.

Customer Relationship Management (CRM):

Bank has introduced CRM as an integrated platform to engage withcustomers throughout their lifecycle to enhance understanding of customer'srequirements and to strengthen customer centric approach of the Bank. The CRM portal hasbeen designed with the objective of generating leads in CRM application through variouschannels better monitoring mechanism of leads at various stages and booking of increasedbusiness with lower TAT through customer connect. Apart from lead monitoring Customer 360view is also available in CRM.

Loan Origination Software (LOS-SME) and Loan Life Cycle ManagementSystem (LLMS): With a view to adopt the uniform standards of credit dispensation forensuring quality and preserving corporate memory loans are processed through LOS and LLMSfor small and high value loans respectively.

Contactless Lending Platform:

State Bank of India is one of the stakeholders of SIDBI led PSBconsortium and your Bank's path-breaking initiative provides easyaccess for loans to SMEs registered on GST platform and filing income tax returns. Usingthe platform your bank is sourcing leads for loan requirements from Rs.1.00 lacs to Rs.500.00 lacs. In FY2021 (up to 31.03.2021) 29697 leads approved in-principle have beengenerated by the portal out of which 20676 leads for Rs. 7686.19 Cr have beensanctioned.

Digitalisation of Services for borrowers:

To enhance customer experience and for hassle-free submission offinancials and other statements your bank has made available this service through itsCorporate Internet Banking Platform.

Project Vivek

Project Vivek heralded a paradigm shift in your Bank's appraisal systemfrom traditional Balance Sheet based funding to a more objective appraisal system ofleveraging cash flow and other information sources. It is a promising initiative launchedby State Bank of India to implement a new Credit Underwriting Engine (CUE) for the SMEsegment thereby bringing objectivity in better risk assessment. Moreover it reduces TurnAround Time (TAT) resulting in better customer experience. In FY2021 as on 31.03.2021 atotal of 40867 proposals were processed under Project Vivek. Further during the yeartechnical enhancements were done in the project to improve the underwriting process.Simplified Automated Quick Renewal process under Project Vivek has been rolled out tosimplify the process of renewal of Fund Based Working Limit.

SME Gold Loan

Your Bank has introduced a simplified product viz. SME Gold Loan toprovide short term credit support to MSME units against Gold ornaments/ jewellery withsimplified assessment and easy sanction. This has helped MSME units bridge their liquiditygap with an ease of availing finance and supporting their business growth. As on31.03.2021 a total of 19379 MSME units were supported amounting to Rs. 640 Cr.

Pre-Approved Business Loan (PABL)

Your Bank has introduced a simplified PABL product - An Analyticsproduct for sanction of loans upto Rs.10 lakhs for existing current account customers hasbeen launched. As on 31.03.2021 a total of 2090 MSME units were supported with limitsamounting to Rs. 72.50 Cr.

Import LC opening through YONO Business

Yono Business has re-imagined key customer journeys to provide asuperior user experience such as online facility for profile management fully digitisedjourney for issuance of Import letter of credit simpler onboarding journey with reduceddocumentation for new to digital customers and much more. We have surpassed global - best- in - class players in terms of issuing import LCs through digital channel for our SMEcustomers. As on 31.03.2021 3233 Import LC for Rs. 3561.47 Cr were issued through YonoBusiness channel.

SME Finance For CAs under CLP

"SME Finance for Chartered Accountants under CLP" is designedfor financing credit requirements of Chartered Accountants. It's a simplified scoringbased product available on Contactless Lending Platform (CLP). Under the productOverdraft (Clean) and Term Loan facilities are being offered. It's a collateral-free loancovered under CGTMSE. Pricing is linked to EBLR. Product is rolled out in Metro &Urban centres including State Capitals/ Tier-I cities on 03.02.2021.

Compressed Biogas under SATAT Scheme

'SATAT' (Sustainable Alternative Towards AffordableTransportation) Scheme was launched on 1st Oct 2018 by Ministry of Petroleumand Natural Gas (MoPNG) Government of India. Your Bank has developed a new Product"Compressed Bio Gas (CBG) under SATAT Scheme" on 22.09.2020 to financeEntrepreneurs who have been awarded Letters of Intent (LOIs) by Oil Marketing Companies(OMCs) for setting up of CBG plants under SATAT Scheme. There is an assured offtake of CBGby the OMCs as per the Commercial Agreement entered. The term loan is repayable over alonger tenure with door- to-door tenor of 15 years and an escrow mechanism is alsoproposed for capturing the cash flows and repayment from the Project.

COVID-19 Enablers

In line with the RBI's regulatory package the followingrelaxations were permitted:

• Deferment of upto 6 months instalments extended in respect ofTerm Loans.

• Interest on WC limits for the period from 1st Marchto 31st August 2020 has been deferred.

• Reassessment of working capital cycle & credit period andresetting of limit accordingly including reduction in margins has been provided.

• Sanction of GECL CCECL and reassessment of WC are done on fasttrack basis to ensure prompt disposal of request and release of funds.

• All eligible customers contacted for extending the reliefmeasures proactive approach was adopted SMS e mails sent.

• Instalment recovered for the month of March'20 has beenrefunded wherever refund has been sought.

• Stoppage of SI/NACH wherever requested has been effected.

Competitive Rates of Interest

Your Bank has linked all floating rate loans to Micro Small and MediumEnterprises (MSMEs) to External Benchmark w.e.f. 01.10.2019.

Trade Receivables Discounting System (TReDS)

State Bank of India was the first among all PSBs to register as afinancier on the TReDS platform set up to provide finance to MSMEs. We have our presenceon all the 3 TReDS platforms in the country i.e. RXIL M1 exchange and Invoicemart. YourBank was actively participating in the online biddings on the platform and was offeringvery competitive rates for the benefit of MSMEs. In FY2021 (from 1.4.2020 to 31.03.2021)Bills aggregating Rs. 934.47 crores were discounted. During the year 4 more new brancheswere authorized to conduct TReDS business. With this your Bank is having presence in allgeographies with a total of 6 branches doing TReDs business.

Supply Chain Finance

Leveraging state-of-the-art technology and branch network your Bankcontinues to be a major player in Supply Chain Finance by strengthening its relationshipwith the corporate world across various sectors. Your bank has extended supply chainfinance to 28000 plus dealers and 14000 plus vendors with total sanctioned limits ofover Rs. 43696 crores.

52 new tie-ups were done during the financial year include corporatessuch as Arcelor Mittal Nippon Steel OPPO Mobiles India Pvt. Ltd (One Plus Division)Exide Industries Industrial Division Bata India Pvt Ltd Avon Cycles Tata ConsumersProducts Ltd Jindal Aluminium Ltd Terumo India Pvt Ltd etc. New e-DFS limits of Rs. 4500Cr were sanctioned up to 31st March 2021. To ring fence the supply chainportfolio Bank has put in place suitable risk mitigation measures and risk-based pricingfor the Supply Chain Portfolio.

Being the country's largest lender your Bank had also undertakenleadership role in implementation of proactive measures to support the dealers availinge-DFS facility during the Covid pandemic related business slowdown. We offered extendedCredit Periods without any penal charges for the consignments of the dealers so as tofactor in the elongated holding of inventories due to lockdown.

3. Business Partnerships and Tie-ups

Your Bank is expanding its portfolio of Warehouse Receipt Finance andSupply Chain Finance through Business partnerships/Tie-ups with Collateral Managers andIndustry Majors.

Warehouse Receipt Finance:

Your Bank has introduced Warehouse Receipt Financing scheme (WHR) toextend finance to traders/owners of goods/manufacturers for processing provided againstWarehouse Receipts issued by Collateral Managers having a tie-up with State Bank of India.Further WHR issued by Central Warehousing Corporation (CWC) and State WarehousingCorporation (SWC) would also be eligible for WHR finance. Your bank has also tied up withrepositories NERL & CCRL for financing against e-NWR and NEML (subsidiary of

NCDEX) for e-auctioning of NPA/Stressed Accounts under WHR Financed.

4. Risk Mitigation

Your Bank has been increasingly shifting its focus towards RiskMitigated Products which include Asset Backed Loans Bills Discounting facility andCGTMSE/CGFMU covered loans amongst others.

D. Rural Banking Agri Business

During FY2021 your Bank's lending under the Agri business hascrossed a major milestone of Rs. 213000 crore catering to 1.37 crore farmers which isthe highest for any Bank.

Your Bank has stood along with the farmers during the COVID-19 pandemicand offered additional emergency credit line of 10% of sanctioned limit to 1981981borrowers to help them in meeting their immediate credit needs. Of this 163111borrowers have availed loans to the tune of Rs. 671

Crore. Moreover your Bank has extended interest deferment facility in1993281 Agriculture Cash Credit accounts and provided moratorium on EMIs and Term loaninstalments in 242911 accounts to support the farmers during the COVID-led pandemic.

Your Bank has been the spearhead in driving the campaign for saturationof the PM Kisan beneficiaries. To this end total 54.43 lakh applications were receivedand 46.29 lakh applications have been sanctioned up to 31st March 2021.

During the year Agri Gold loan portfolio has increased from Rs. 58987crore to Rs. 66877 crore.

Your Bank has launched three new products under the Aatmanirbhar Bharatschemes viz. Agri Infrastructure Fund (AIF) Animal Husbandry Infrastructure DevelopmentFund (AH IDF) and PM Formalisation of Micro Food Processing Enterprises (PM FME) tobolster the investment credit portfolio in the Agri segment.

The Ground Level Credit disbursements to the farmers over the years areas follows:


FY2016 89781 102423 114
FY2017 95168 125270 132
FY2018 105741 166819 158
FY2019 116315 156385 134
FY2020 127947 177473 139
FY2021 174468 198268 114

During FY2021 your Bank launched the SBI- OTS/ Rinn Samadhan schemethis year under which 621182 accounts have been settled.

Additionally an individual vertical named as Financial Inclusion &Micro Markets (FI&MM) has been established by your Bank to cater to the diverse creditneeds of the rural population across the country.

1. Micro Credit (SHG-ank Linkage)

Your Bank has won the National Award for the Highest SHG bank linkagesfor the year 2017-18 2018-19 and 2019-20 instituted by Ministry of Rural Development NewDelhi.

Your Bank has the Highest Market share in SHG loan outstanding amongall banks with outstanding loans of Rs.17662 crore to Rs. 7.83

lakh SHGs as on 31st March 2021 covering more than 75 lakhwomen members. State Bank of India's market share of loans under National Rural LivelihoodMission among PSBs is 25.81% as on 31st March 2021.

Your Bank has (a) sanctioned 89626 loans ever since introduction ofe-Mudra scheme for financing Micro enterprises up to the limit of Rs. 50000. Of which(b) 74461 loans for Rs. 347.83 crore have been disbursed up to 31st March2021.

Your Bank has launched "PM SVANidhi Loans" with effect from02.07.2020 to support the livelihoods of street vendors during the COVID-19 pandemic. Ason 31.03.2021 we have disbursed 539535 loans amounting to Rs. 538.18 crore to streetvendors.

2. Digital Step Collaborations

Under the digitisation of products and processes Agri Gold loans arenow processed and sanctioned through YONO Krishi digital platform. Similarly the KCCreviews are also being processed through the YONO Krishi channel.

To address high volume and low ticket loans in the Agri Business withdigital optimisation strategy your Bank is exploring opportunities to enter intocommercially viable partnerships with selected Agritechs who have differentiated BusinessModels. This will help in facilitating the transformation of Agri supply chain/value chainto improve farm production/income opportunities to farmers with digital tools such asArtificial Intelligence (AI) Block Chain IoT (Internet of Things)/ML poweredcapabilities. The continuous engagement and connectivity with farmers is expected toprovide last mile relationship and strong association with your Bank. Your reviews arealso being processed through the YONO Krishi channel. Bank sees AgriTech as a channel tobring in new segment of customers (which the bank could not access earlier) - a channel toimprove decision making grow top-line and improve efficiency. The partnership will alsoserve as an opportunity to cut operational costs credit costs improve profitability anduser experience as digital transformation will no longer be optional but a necessity forstructural change in the digital ecosystem.

Your Bank has executed agreements with > 19 National BusinessCorrespondents (BCs) and 41 State Level BCs for the collection of repayments in Standardoverdue accounts. As on 31st March 2021 57145 Customer Service Points (CSPs)have been mapped with 14657 branches for collections.

3. Other Activities

Your Bank has celebrated the World Soil Day on 5th December2020 and Kisan Diwas on 23rd December 2020 with farmers by felicitating themfor their trust in your Bank. In addition to this your Bank has onboarded 44 FarmerProducer Companies (FPCs) on this day with a purpose to extend its support to theinitiative of collectivisation of farmers to make farming a sustainable business.

4. Financial Inclusion (FI)

Your Bank has aligned its business performance with national prioritiesand focused attention is being provided towards financial inclusion activities. The Bankis working towards attaining the objectives set by GOI viz. inculcating habits of thriftensuring availability of credit facilities and promotion for digitisation of financial ecosystem in rural/semi-urban areas.

As on 31st March 2021 your Bank has 71968 CustomerService Points (CSPs) providing access to various banking products and services inunbanked areas while reducing footfalls in the branches. It has recorded ~58.78 croretransactions amounting to Rs. 252470 crore translating to more than 16 lakhtransactions per day on an average. Furthermore the Channel has opened 13.76 crore BSBDAccounts with Rs. 37430 crore deposit so far and has brought theunbanked/under-privileged section of the society under the ambit of formal banking system.

To fulfil the needs of Social Security measures low cost Microinsurance products (PMJJBY PMSBY) and pension schemes (APY) are provided to theunorganised sector in a big way covering around 8 crore customers.

Imparting Financial Literacy

With the objective of imparting free financial literacy creditcounselling and propagating use of electronic payment systems your Bank has set up 341FLCs across the country. Despite COVID-19 during the period between 1st April2020 and 31st March 2021 FLCs have conducted 11943 camps where 3.64 lakhpeople have participated. As a pilot project implemented by RBI your Bank has also set up15 Centres for Financial Literacy (CFLs) at Block level five each in the State ofMaharashtra Chhattisgarh and Telangana. Another 230 CFLs are being set up across thecountry to create financial awareness among the rural masses.

Rural Self Employment Training Institutes (RSETIs)

Your Bank has set up 152 RSETIs spread across 26 States and 3 UnionTerritories. RSETIs act as social change agents empowering rural youth towardssustainable livelihood through skill development and training helping them to establishtheir own micro enterprises thereby creating rural employment and wealth creation.Despite the cOvID-19 pandemic the RSETIs have trained 66260 candidates and achieved 107%of the Annual Training Target set by Ministry of Rural Development (MoRD).

During the pandemic the Bank's Customer Service Points across thecountry served in difficult terrains/conditions to meet financial requirements of thepeople in need.

E. NBFC Alliances

Your Bank has created NBFC Alliances Department in October 2018 afterthe guidelines on Co-origination of Loans with NBFC-ND-SIs were issued by the RBI. Whileunder Co-origination 8 NBFCs were on-boarded RBI has come up with fresh guidelines onco-lending of loans with NBFCs on 5th November2020 covering all NBFCsincluding HFCs providing a wider basket along with more convenience for operations whichsupersedes its earlier Co-origination guidelines. Your Bank's policy on co-lending withNBFCs is available on the official website and co-lending is set to be a new focus areafor your Bank to bolster its Priority Sector loans. Through the co-originationarrangement your Bank has sanctioned 38000 loans in the last one year in a completedigitisation mode for loans up to Rs.1 lakh. Alongside co-lending your Bank through theBusiness Associate policy with NBFCs MFIs and BCs will be increasing its footprint in theunder covered geographies in the country with focus on growth in its Priority Sector loanbooks

F. Government Business

Your Bank is at the forefront in conducting Government Business and isan accredited Banker to major Central Government Ministries and Departments. Your Bank isthe market leader in Government Business with a market share of over 67% in CentralGovernment Turnover and more than 80% share in Government Commission.

Your Bank with its wider presence and digital prowess has beenPreferred partner to the Government for "Digital India". Your Bank iscontinuously engaged in developing customised technology solutions to keep pace with theGovernment's digital initiatives facilitating transition to the online mode providinggreater efficiency and transparency resulting in ease of doing business and ease ofliving for the citizens.

Your Bank is actively engaged in implementation of Social SecuritySchemes of the Government of India viz- PM Kisan Samman Nidhi Yojana Pradhan Mantri ShramMandhan Yojna Pradhan Mantri Kisan Mandhan Yojna and PM Garib Kalyan Yojna for PMJDYWomen Beneficiaries.

Govt. Turnover and Commission

('in crore)

Particulars FY FY
2019-20 2020-21
Turnover 5262643 5077446
Commission 3742 3617

Following initiatives were implemented during the year:

1. Pradhan Mantri Garib Kalyan Yojna for PMJDY Women Beneficiaries

Your Bank has facilitated release of Rs. 30796.39 crore to 20.54 crorebeneficiaries. Your Bank has developed an online portal for monitoring of the fundstransferred to women PMJDY beneficiaries as per the guidelines received from the FinanceMinistry for generating MIS up to Branch level in respect of funds distribution.


During the outbreak of COVID-19 your Bank has opened accounts meantfor collection of Donations by Central and State Govts largest among these being PM-CARESaccount.

3. PM Kisan Samman Nidhi Yojana

As accredited Bank to Ministry of Agriculture & Farmers Welfareyour Bank has facilitated distribution of Rs. 63170 crore under the scheme in FY2021.

4. Direct Benefit Transfer (DBT)

All the major schemes of Direct Benefit Transfer (DBT) of GoI and StateGovernments are being implemented through your Bank on a PAN India level. Your Bank is thesole Banker for processing

Direct Benefit Transfer of LPG subsidy (DBTL). Total number oftransactions and amount processed in FY2021 are as under:

('in crore)

Particulars No. of Transactions Amount
DBT 80.20 397524
DBTL 107.85 15506

5. Ministry of Home Affairs

Your Bank has been authorised by the MHA to open FCRA accounts of allNGOs to receive foreign contributions. There are over 23000 FCRA certificate holdersacross the country which are required to open account with Your Bank. Around 10000accounts have been opened during FY 2020-21.

6. GeM (Government e-Marketplace)

Your Bank is the pioneer amongst Banks for financial integration ofpayments to suppliers for procurement of common goods and services through GeM portal. TheGeM Pool accounts of five States and 988 Autonomous Bodies have been opened with yourBank.

7. e-Tendering

12 State Governments have been provided the product by integrating withSBMOPS. Our endeavour is to onboard all State Governments in a phased manner. Thee-Tendering Solution has been provided to CPWD and NRIDA (National Rural InfrastructureDevelopment Agency) for Pradhan Mantri Gram Sadak Yojna.

8. Passport Seva Project

Your Bank is the Sole Banker in the Passport Seva Project byintegrating with SBMOPS for collection of fees. Integration with SBI e-Pay is alsounderway to provide an alternate option.

9. Ministry of Railways

Integration of SBI UPI and Rlys (CRIS) ATVM tickets is in final stageafter successful test transactions. POS machines are being provided to TCs in movingtrains. Furthermore 10326 machines are made operational.

10. Department of Post

MoU has been executed for collection of Postal Life Insurance throughSBI (for both mandate and VAN models).

Centralised Integrated Payment System (CIPS) to take care of entirePostal Payments was implemented in Delhi PAOs by your Bank on a pilot basis during FY2020-21. Riding on successful implementation now it has been decided by Postalheadquarters to extend the scheme PAN India and MoU to this effect is going to be executedshortly.

11. Income Tax Refund Order (ITRO)

MoU has been executed with CBDT making your Bank the Sole refund Bankerfor Income Tax refund. SBI has successfully processed more than 2.6 Cr. refunds in FY2020-21 amounting to Rs. 2.6 lakh crores

12. National Health Authority (NHA)

National Health Authority (NHA) is the umbrella body for implementationof Ayushman Bharat Yojana (ABY) in the country with the help of State Health Authority(SHA) in the States. Your Bank is proud to be associated with NHA as the Principal Banker.

13. Pension Payments

Your Bank has been administering pension payment to 58.81 lakhpensioners and made disbursement of total pension amount of more than Rs.150860 crore inFY2021. New pension accounts of 3.38 lakh pensioners have been added in the currentfiscal.

Your Bank has revamped Pension Sewa website www.pensionseva.sbienabling pensioners to login and view their pension details viz. transaction detailsgeneration of pension slips and arrear calculation sheet amongst others from the comfortof their home.

14. Small Savings Schemes

State Bank of India services more than 82.59 lakh PPF and 20.32 lakhSukanya Samriddhi accounts making it the highest among all the authorised Banks.Additionally 5.35 lakh PPF accounts and 2.40 lakh Sukanya Samriddhi accounts have beenadded during FY 2020-21.

G. D&TB - Marketing

D&TB - Marketing erstwhile Transaction Banking Unit (TBU)leverages technology to provide comprehensive solutions for bulk transaction requirementof clients facilitating their efficient funds management along with value added servicessuch as customised MIS and dedicated single point client support among other areas. TheDigital & Transaction Banking services facilitate your Bank to maintain closerelationship with clients and also to assess their other Banking requirements such asCredit Fund Management and Cross Selling. During FY2021 the D&TB played a vital rolein providing doorstep services and facilitating transactions during the COVID- inducedlockdown.

Your Bank offers a wide range of D&TB products/services toCorporate Government Departments Financial Institutions and SME Clients. Corporate andGovernment clients along with SME continue to be the key focus segment for the Bank.

Keeping in line with market trends your Bank is continuouslyupdating/evolving the bouquet of D&TB products/services offered to meet clientrequirements as well as has the best of products in market bench marked to those offeredby competitors. In order to bolster the businesses of the clients through the digitaltransaction mode during COVID-19 D&TB Marketing conducted several campaigns duringthe year.

Despite the lockdown of businesses due to the current year challengesposed by the pandemic the D&TB Fee Income for the fiscal increased from Rs.1902.77crore in FY2020 to Rs. 2009.75 crore in FY2021.

The turnover for FY2021 registered a Y-o-Y increase of 10.92% withtransactions amounting to Rs. 6764137 crore in FY2021 over Rs. 6098347 crore inFY2020.

Your Bank was recognised as "Best Transaction Bank in India"by Asian Banker Magazine Singapore for the fourth consecutive year in a row in 2020. YourBank was also recognised as "Best Payment Bank in India" by Asian BankerMagazine Singapore for the second consecutive year in 2020.

2. Global Banking

A. Corporate Accounts Group (CAG)

Corporate Accounts Group (CAG) is a dedicated Strategic Business Unit(SBU) of your Bank handling the portfolio of ‘high value credit' with a USP ofspecialised and efficient delivery platform. The CAG SBU has four specialised Branchesheaded by the General Managers located in India's top three commercial centres viz.Mumbai Delhi and Chennai.

In SBI CAG is a one stop shop which provides a wide range offinancial products and services exclusively to top rated corporates including theirforeign associates and subsidiaries.

The business model of CAG is based on the Relationship Managementconcept and each client/business group is mapped to a Relationship Manager who spearheadsa cross-functional Client Service Team consisting of highly skilled credit and operationsfunctionaries.

The relationship strategy is anchored on delivering integratedspecified and comprehensive solutions to the clients including structured products withina specified time frame. The principal objective of the strategy is to make your Bank thefirst choice of top corporates. A regular review of each corporate relationship by seniormanagement sets the benchmark for relationship management in CAG.

Apart from a variety of core credit products CAG offers an array ofcustomer specific products like Cash Management Product Treasury and Forex products andMerchant Banking products in association with other SBUs and subsidiaries of SBI such SBICapital Markets Limited and SBI Gilts Limited amongst others.

Client Service Teams at CAG Branches also aid customers in selectionand delivery of a wide variety of products/services offered by SBI's associates andsubsidiaries listed below:

• For Capital Market Requirements - SBI Capital Markets Ltd.(sBlCAPS)

• For Treasury and Investments - SBI GILTS and SBI SECURITIES

• For Investments - SBI Mutual Fund Ltd.

• For General and Life Insurance - SBI General Insurance Co. Ltdand SBI Life Insurance Co. Ltd.

• For Receivables factoring - SBI Global Factors Ltd.

To align with the changing banking landscape your Bank has created twospecialised business units within CAG Business Vertical:

• Corporate Solutions Group (CSG) - for looking at 360 bankingrequirements of customers especially in credit light sectors viz - Pharma FMCG IT andAuto amongst others.

• Financial and Institutional Group (FIG) - to address credit andtransactional banking requirements of Financial Institutions like Insurance CompaniesBrokerage Firms Banks (Private and Foreign) and Mutual Funds.

The total loan portfolio of CAG as on 31st March 2021 wasRs. 5.42 lakh crore (fund based - Rs. 3.61 lakh crore and non-fund based - Rs.1.81 lakhcrore) compared to total loan portfolio of Rs. 5.37 lakh crore (fund based

- Rs. 3.64 lakh crore and non-fund based - Rs.1.73 lakh crore) as on 31stMarch 2020. Due to ample liquidity and benign interest rate top-rated Corporates shiftedtheir borrowing towards market related instruments such as CPs NCDs. Hence there wassubstantial growth in Investment book during the year.

Major top corporates of the country and Navratna PSUs are esteemedcustomers of CAG Business Unit.

B. Treasury Operations

The Global Markets performs Treasury Operations of your Bank. It isresponsible for deployment of surplus funds to achieve desired risk-adjusted returns.Global Markets' portfolio comprises of investments in SLR and Non-SLR Securities PubliclyTraded Equities Venture Capital Funds Private Equity and Strategic Investments.Additionally it offers multiple products and services that cater to the foreign exchangerequirements of the customers.

Last one year has been a challenging one for all due to COVID-19.However through the use of robust technology solutions your Bank has been successful inproviding unhindered services to our Treasury customers throughout this testing periodwhile following all health-related safety precautions.

1. Interest Rates Movements and SLR and Non-SLR Portfolio of Your Bank

Global Markets manages the domestic Investment Portfolio of your Bankand also maintains regulatory requirements of CRR (Cash Reserve Ratio) and SLR. TheCOVID-19 pandemic continued to have a major impact on economies and financial marketsacross the world. The Indian economy had a robust V-shaped recovery from -23.9% YoY GDPgrowth in Q1 FY2021 to 0.4% in Q3 FY2021 as large parts of the economy were opened upafter the initial lockdown. Though towards the end of FY2021 threat of another lockdowndue to a new virulent strain of COVID-19 is looming large.

To cope with the lower revenues due to COVID-19 government increasedits gross borrowing from the budgeted Rs. 7.8 lakh crore to Rs.13.7 lakh crore. At thesame time uptick in global prices of base metals and disruption of supply chains indomestic

markets led to inflation picking up. The CPI remained above 6% tillNovember 2020 touching a high of 7.61% in October 2020 easing thereafter due to a sharpfall in vegetable prices and favourable base effect.

During FY2021 RBI took various monetary measures to support theeconomy. RBI continued its "accommodative" stance through the year cut policyrepo rate from 4.40% to 4% and reverse repo rate from 4.00% to 3.35% and undertookunconventional measures viz. Targeted Long-Term Repo Operations (TLTROs) asymmetric OpenMarket Operations (OMOs) and Simultaneous Sale and Purchase of securities amongstothers. RBI also temporarily cut Banks' CRR requirement by 1% of NDTL (Net Demand and TimeLiabilities) and provided relaxation in maintenance of Liquidity Coverage Ratio. To easeabsorption of large G-Sec/ SDL issuances RBI also increased HTM limit from 19.5% of NDTLto 22%. RBI also added net liquidity of Rs. 3.17 lakh crore through purchase of securitiesunder Open Market Operations (OMOs). On account of these measures 10-year benchmark bondyield fell from a high of 6.50% (09th April 2020) to a low of 5.72% (22ndMay 2020).

During the years deposit growth was robust and advances growth mutedleading to surplus liquidity with your Bank. This has resulted in our investments in debtsecurities going up sharply this year with the additional investments spread acrossGovernment securities and corporate bonds. On the other hand low interest rates haveimpacted portfolio NIMs adversely. Your Bank actively participated in the TLTROs andPartial Credit Guarantee Scheme (PCGS) playing its part in supporting RBI andGovernment's efforts to improve access to funding for economic recovery.

2. Equity Markets

The year was marked by uncertainty in global equity markets since themonth of February 2020 due to COVID-19's rapid spread across some countries. Largeliquidity injections by major central banks caused significant FPI inflows into Indianequity markets. The pace of FPI investments increased sharply from November 2020 as theemergence of at least three viable vaccines improved prospects of an end to the globalpandemic and return to normalcy. FPIs had invested Rs. 2.74 lakh crore in the Indianequity markets in FY2021.

Your Bank actively participated in the equity markets both during theMarch 2020 sell- off and the rally during FY2021. The year also saw many successful IPOswith strong listing gains. Your Bank's investment in the primary market proved veryfruitful generating high returns. We continue to manage the equity portfolio by realigningthe book according to market movements while keeping a tab on domestic and global macrosand are continuously working towards achieving strong returns.

3. Private Equity/Venture Capital Fund

Your Bank has been active in the Alternative Investment spacethroughout the year. Amid pandemic your Bank part divested its stake in non-core assetsand assessed a number of new investment opportunities. During the year your Banksanctioned investments of nearly Rs. 600 crore in Private Equity/Alternative InvestmentFunds.

4. Forex Markets

The GMU handles the foreign exchange business of your Bank providingsolutions to the customers for managing their currency flows and hedging risks throughoptions swaps and forwards in addition to providing liquidity to markets. Your Bank isa leading player in USD-Rupee Spot and USD-Rupee Forward markets and has a high marketshare in merchant foreign exchange flows. Your Bank is the leader in providing liquidityin CCIL Fx Clear platform. The volume traded in Currency Futures puts your Bank in thebracket of leading client Banks of exchange houses. Your Bank is actively onboardingcustomers on FX-Retail platform rolled out by CCIL through which customers will benefitfrom transparent and competitive pricing. Your Bank has also made available FX All ande-Forex trading platforms to customers looking at their requirements. Your Bank is alsoworking on providing a fully digital Trade Finance solution through our YONO Businessplatform.

This year RBI has allowed Indian banks to participate in the offshoreUSD-Rupee markets. Accordingly your Bank has started participating in the offshore USD-Rupee market.

Impact of the COVID-19 crisis on trade flows was felt in the Indianforeign exchange markets this year though significantly higher investment flows providedsome cushion.

Using technology your Bank managed to provide all foreign exchangeservices to its customers unhindered including adjusting to Work From Home arrangementsof corporate clients. We have also tested our ability to run all our operationssuccessfully while working from home through secured VPN.

Your Bank currently deals in Over The Counter (OTC) interest rate andcurrency derivatives along with exchange-traded currency derivatives and Interest RateFutures. The interest rate derivatives traded by your Bank are Rupee interest rate swaps(OIS) Foreign Currency interest rate swaps (IRS) Foreign Currency to Rupee interest rateswap (MIFOR) Forward Rate Agreements (FRA) Caps Floors and Collars. Currencyderivatives dealt by your Bank are Cross Currency Swaps (CCS) USD/INR options andCross-Currency options. The products are offered to your Bank's customers to hedge theirexposures. The contra positions may be kept in Option or MIFOR book or covered back toback in the interbank. Derivatives are used by your Bank both for trading as well as forhedging balance sheet purposes.

Derivative transactions carry market risk that is the probable lossyour Bank may incur as a result of adverse movements in interest rates/exchange rates. Italso carries credit risk that is the probable loss that your Bank may incur if thecounterparties fail to meet their obligations. Your Bank's "Policy forDerivatives" approved by the Board prescribes market risk parameters (Greek limitsLoss limits cut-loss triggers open position limits Duration Modified Duration PV01amongst others) as well as customer eligibility criteria (credit rating sanctionedlimits and CAS rating as per Customer Appropriateness and Suitability policy) forentering into derivatives transactions. Risk on interbank counterparties is monitoredthrough limits set for the purpose. These counterparties are required to execute ISDA withus.

Your Bank has various committees and departments in place to monitorvarious types of risks. The Asset Liability Management Committee (ALCO) oversees theefficient management of liquidity risks. The Market Risk Management Department (MRMD)identifies measures and monitors market risk associated with derivative transactions.MRMD also assists ALCO in controlling and managing these risks and reports compliance withpolicy prescriptions to the Risk Management Committee of the Board (RMCB) at regularintervals.

2FX-All is an electronic foreign exchange trading platform andaggregator

3e-Forex is SBI's internet-based platform for customers tobook foreign exchange transactions online

The accounting policy for derivatives has been drawn up in accordancewith the RBI guidelines the details of which are presented under Schedule 17: SignificantAccounting Policies (SAP) for FY2021.

Foreign Banking Subsidiaries / Joint Ventures Share Holding (%)

State Bank of India (California) 100.00
SBI Canada Bank 100.00
State Bank of India (UK) Limited 100.00
Commercial Indo Bank LLC 60.00
SBI (Mauritius) Limited 96.60
Bank SBI Indonesia 99.00
Bank SBI Botswana Limited 100.00
Nepal SBI Bank Limited 55.00
Foreign Non-Banking Subsidiary
SBI Servicos Limitada Brazil 99.99
Joint Venture
Bank of Bhutan Limited 20.00

In its endeavor to become a truly International Bank the focus of yourbank has been realigned to enhance its penetration in overseas local markets along withIndia based business to support Indian Diaspora and global Indian Corporates spread acrossvarious geographies. The Overseas operations of your bank are managed by a separateBusiness Unit - International Banking Group (IBG) headed by the Deputy Managing Director(IBG) and overseen by MD (IBT&S).

Global Presence

The Bank's first global footprint was with the branch of Bank of Madrasin Colombo Sri Lanka in July 1864 (First amongst Indian Banks). With a presence acrossall time zones through 229 offices in 31 countries Your Bank has gradually spread itswings across the globe and has become a pioneer of International Banking among the IndianPSBs. The overseas offices of SBI offices are being managed by IBG.

The details of offices opened/closed are furnished in the below table:

Overseas Offices As on March 20 Opened during the year Closed during the year As on March 21
Branches /Sub-Offices / Other Offices 58 0 3 55
Subsidiaries (9) 0 0 (9)
Offices of Subsidiaries 163 0 0 163
Representative Offices 7 0 1 6
JV/ Associates / Managed exchange Cos /Investments 5 0 0 5
Total 233 0 4 229

During FY21 your Bank continued to consolidate its overseas operationsby rationalizing offices with sub-optimal performance enabling improvement of costefficiencies. The Bank has closed four foreign offices- Lenasia Marketing Office (SouthAfrica) Selatar Remitance Center (Singapore) Bab-al-Bahrain Limited Service Centre(Bahrain) and its Representative Office at Istanbul (Turkey). During this period yourBank has not ventured into opening of new branches/offices on account of its focus onconsolidation and prevailing global scenario due to Covid 19 Pandemic.

Covid 19 and IBG Response: Covid-19 the global pandemic has disruptedthe global economic system pushing countries into various degrees of recession. Apart fromrepercussions of the pandemic countries have also been handling the economic contractioncaused both by the pandemic and the health measures like lock down movement restrictionsetc. Slow-down in the economic activity and consequent impact on levels of global tradeinvestments etc. have been witnessed.

Your Bank has shown remarkable resilience in continuity of its corefunctionalities at our offices across the globe despite heterogeneous challenges onaccount of the pandemic.

IBG has adapted well to optimize its cost of resources in view ofliquidity flush in the market by substituting its high cost resources with variouslow-cost alternatives by diversifying its liability base. It has raised sizeable long-termresources from developments banks in Asian countries like Japan and Korea apart fromborrowings from multi-lateral agencies at finer rates. It has also leveraged its digitalofferings like SBI YONO by launching in new geographies to improve penetration throughcontactless offerings for raising retail deposits.

Despite subdued business growth for the first half year IBG has notonly crawled back to reclaim its pre-Covid business levels but has also registered growthin its overseas portfolio while ensuring control over the quality of assets in the wake ofstretched effect of Covid 19 on various sectors. Apart from meticulous credit monitoringIBG has been agile in shedding

problem assets showing signs of stress to minimize the possibility oflosses on account of further deterioration in asset quality. Despite consequent businessloss challenges like scarcity of quality assets and low credit off-take due to limitationson capital expenditure by various regulators etc. IBG has been able to build on its assetlevels. Your bank has also emerged as a Lead Arranger in loan syndication deals with banksin countries like South Africa. Further it has maintained its connect with the clientelethrough various outreach initiatives with exporters banks etc. to reinforce the existingrelationships and also to forge new ones.

Apart from dealing with various business challenges InternationalBanking Group (IBG) has successfully met the expectations of the overseas regulators bytaking necessary steps like providing relief to its clientele through restructuringpackages including deferments and moratoriums wherever prescribed by the localregulations. IBG has also adapted to the changes in the regulatory framework of variouscountries in the wake of Covid 19.

IBG has maintained decent profitability during the year despite theshrinking of spreads subdued credit growth decline in Non-Interest income due to impacton LC/BG remittance business etc. It has embarked upon various new business initiativeslike Merchant Banking Factoring Services etc. to supplement its income streams.

The specialized departments of IBG have played a vital role insustaining the momentum by contributing on various fronts:

1. Credit Contribution:

Business Driver

Your Bank has facilitated Indian corporates in their growth strategy byarranging debt in Foreign Currency by way of External Commercial Borrowings throughsyndicated deals in conjunction with other Indian and Foreign Banks and through bilateralarrangements. In recognition of its exemplary efforts your Bank was chosen as the"Syndicated Loan House of the Year" - India by APLMA (Asia Pacific Loan MarketAssociation).

Your Bank sanctioned Foreign Currency loans to the tune of USD 8.9billion to Indian related corporates and USD 8.6 billion to overseas entities. In thefield of Energy your Bank has provided funding to oil companies which have significantstrategic importance for India in terms of augmenting India's Energy Security amidunstable Crude and Forex prices. Presently your Bank offers a wide range of products andservices to exporters and importers through an extensive well equipped branch networkthat operates domestically and internationally.

2. Trade Finance

Your Bank provides a slew of Trade Finance products and services toexporters and importers through an extensive well equipped branch network that operatesin all time zones in India and abroad. Global Trade Department (GTD) of IBG facilitatesand supports our Foreign Offices (FOs) for an orderly growth of Trade Finance portfolio.GTD formulates policies and innovates new products for FOs as per changing regulatorynorms and market demands. It takes a lead in introduction

of new technologies to improve service quality in Trade Productofferings viz. Bill Discounting under Letter of Credit Secondary Market Participationsin Bank / Corporate Risk India centric Trade Credit ECA/MLA backed Trade Finance SupplyChain Finance program Letters of Credit Bank Guarantees etc. During the FY21 Bank hasintroduced Factoring into its Trade Finance product portfolio and it is now available toour customers at our foreign offices. Robust Trade Finance technology solutions for backend operations with a customer interface and AML / CFT compliance solution integrated toit is available at all FOs.

GTD facilitates Trade Credit to Indian Corporates for their imports bycentralized handling of Quote process. It plays an important role in synergizing businessflows between Domestic and Foreign offices for maximizing returns. It also organizes Traderelated workshops/ Conferences by partnering with BAFT (Bankers Association for Financeand Trade) GTR (Global Trade Review) etc. which provide a good platform for TradeFinance operating officials to acquaint with latest trends in Global Trade Finance market.Further Workshops are also organized by partnering with ICC FIEO etc. to provideplatform for networking with Exporters/ Regulators/ Industry majors.

Trade finance business has a contribution of ~ 27% in the IBG advancesportfolio. SBI has been awarded "The Best Trade Finance Provider (India) -2021"for ninth consecutive year by Global Finance Magazine.

3. Overseas Treasury Management

The Treasury Management Group (TMG) at International Banking Groupundertakes following functions for Foreign Offices:

• Liquidity Management

• Dealing Room Operations

• Investments

TMG-IBG manages overall liquidity portfolio of IBG and also monitorsALM ratios. TMG is the nodal department for raising Long and Medium-Term Funds throughBond Issuance (MTN/ Standalone 144A) Syndicated Loans etc. In addition to this TMG alsoutilizes various means of borrowings to keep the cost of resources in check. During theFY in order to optimize cost of resources TMG has prepaid high- cost borrowings anddeposits and replaced them with lower cost funds. TMG is actively engaged withSupranational entities in arranging foreign currency finance/ refinance at competitivepricing.

During the FY 21 your Bank has issued bonds to the tune of USD 600 Mioin January 2021 with overall fixed coupon of sub 2% (pricing of this bond) which was forthe first time in India.

TMG also manages Investment book of Bank's foreign operations whichcurrently stands at ~ USD 5.8 Bn. These investments provide stable interest income for IBGand also help in maintenance of liquidity ratios. The department also monitors andprovides guidance to dealing rooms at major centres and facilitates Money Market Forexand Derivative functions at FOs. Currently there are four major dealing rooms at LondonNew York Hong Kong and Bahrain that work on a hub and spoke model to help smallerForeign Offices in their operations. During the year FY21 your bank has commenced tradingin Rupee Non-Deliverable Forwards (NDF) through Hong Kong Singapore and IFSC BU(Gandhinagar) and is looking forward to expand this activity to other centres as well.

4. Global Payments and Services

Global Payments & Services (GP&S) a unit under InternationalBanking Group (IBG) comprises three branches/offices viz. Global Link Services (GLS)International Services Branch Mumbai (ISBM) and International Services Branch Ernakulam(ISBE). It facilitates online inward remittances from overseas locations to India ForeignCurrency Cheque collection Opening & Maintenance of Vostro Accounts Asian ClearingUnion (ACU) transactions and transactions of Bank for Foreign Economic Affairs (BFEA)USSR . The highlights of the department are:

• Tie-up with 45 Exchange Companies and five Banks forchannelizing inward rupee remittances from overseas to India.

• During FY21 GP&S on behalf of domestic branches handledsizeable volumes of Export bills (in USD and Euro) and Foreign Currency Cheque collection.

• During the same period GP&S handled online inwardremittance transactions amounting to USD 9.04 billion received from various globalcenters.

• 172 Vostro Accounts for different Correspondent Banks/ ExchangeCompanies/ SBI Foreign Offices are being currently maintained by the unit.

• GP&S is Pan India Nodal Office for handling ACU transactionsfor SBI.

5. Retail Strategy

Your Bank has been a "window to India" for NRIs residing indifferent parts of the world through its specialized retail and remittances products. Thenotable achievements for the year are:

• YONO SBI one of the most ambitious and secure digital offeringof the bank has now been extended to customers at our overseas offices. It has beensuccessfully launched in UK Mauritius Maldives Bangladesh South Africa Sri Lanka andCanada with non-face to face account opening facility operational in UK and Canada. We areplanning to launch SBI YONO in Singapore Bahrain and USA by the end of FY22. More than40000 overseas customers have been onboarded through YONO.

• "Namaste UK" product of YONO SBI UK allows has beenlaunched that enables prospective Indian Expats to open an Account with SBI UK evenbefore landing in UK from India itself. Similar product is also being launched in Canadaincluding Student GIC accounts for Indian students who have enrolled in Canadianuniversities. We plan to launch a similar product at Singapore too in the coming months.

• "One View" feature of YONO Global allows our Foreignoffices customers to view their Domestic SBI Accounts through YONO Global Apppractically merging all enquiry features of Domestic YONO SBI with our Global version.More than 2200 SBI Foreign office customers are already using this feature.

6. Financial Institutions Group - Correspondent Relations

The Group facilitates linkages of the Bank with internationalstake-holders viz. Correspondent Banks Foreign Govt. Agencies and Developmental FinancialInstitutions International Chamber of Commerce etc. on one side and facilitates synergybetween IBG and other business Verticals such as Corporate Accounts Group CommercialClients Group Global Markets and National Banking Group on the other side.

• FIG continues to leverage on the Bank's correspondent network of227 Banks in 56 countries to deliver tailored financial solutions for its global customersby adopting a data driven approach through its FI CRM (Financial Institutions - CustomerRelationship Management) application which provides 360 degree view of engagements withCorrespondent Banks.

• FIG strives to make SBI the Correspondent Bank for all IndianPublic sector and private sector banks by utilizing its global presence and utilizes ourcorrespondent network for raising long term syndicated loans for Foreign FinancialInstitutions.

• FIG product focus areas have widened over the years beyond mereaccount relationship to Trade Finance Credit Treasury Debt Capital Markets ForexBusiness Transaction Banking Remittances and Currency Clearing.

7. IB Domestic

Your Bank is well equipped to provide a wide range of products andservices to exporters and importers through an extensive branch network that operatesdomestically and internationally.

International Banking-Domestic (IBD) serves as a single point ofcontact between the Domestic Offices and Foreign Offices in areas related to Trade Financeand International Banking. IBD aims at improving synergies and trade flows betweenDomestic Offices and Foreign Offices/ Correspondent Banks and trading community by actingas a robust link between them.

In a bid to facilitate Trade community Forex Service charges are beingrationalized and aligned with the market every year by IBD. IBD also facilitates systemrelated enhancements and updates in Exim Enterprise/SWIFT.

IBD is also actively involved in re-building skills of IB officials bypartnering with ICC FIEO FICCI CII etc. and organizing Trade related workshops/Seminars which provide good platform for networking with Exporters/ Regulators/ Industrymajors in addition to coordinating and liaising with Trade bodies and ICC subgroups fordeveloping relations and strengthening ties.

Centralized Co-ordination Cell Foreign Bank Guarantee (CCC-FBG) forprocessing

Lead Arranger SBI launches Syndication loan of USD 400 Mio for FirstRand Bank in South Africa.(Officials from left to right : Mr. Syam Prasad Ankala (CEO SBISouth Africa) Mr. Venkat C Nageswar (Dy. Managing Director SBI) Mr. Suresh Chaytoo -Sector Director and Global Head of Banks at Rand Merchant Bank (Division of FirstRand) andMr. Pon Erwin - Head of Asia - First Rand Group

Inward and outward Foreign Bank Guarantee has been exclusively set upunder the aegis of IB-Domestic to provide a one stop solution to Correspondent Banks/Foreign Offices/ Domestic Banks/ Domestic Offices seeking Domestic Foreign Bank Guaranteesbased on their counter Guarantees.

IBD is instrumental in improving FEMA compliance across the Bank. Thedepartment ensures timely submission of RBI/FEMA related returns in addition to issuinginstructions with regard to revisions in FEMA/ RBI guidelines.

In order to facilitate customers for Overseas Direct Investment/ForeignDirect Investment IBD has been instrumental in streamlining internal processes andpolicies so that customers and Bank are able to meet the regulator's expectations.

IBD is meticulously working on revamping our trade process under TradeCentralization and Digitization project and an entirely new set up for handling TradeFinance equipped with latest technological systems and processes is expected to befunctional by end of FY22.

8. Technology Initiatives at Overseas Offices

Your Bank continues to leverage technology solutions to automateprocesses enhance customer experience and manage risk. The initiatives undertaken at ouroverseas offices include: -

• Your bank has rolled out two Remittance corridors during theyear- Mauritius to Bangladesh and Gulf to Sri Lanka.

• Your bank has developed an inhouse paperless solution for itsinternal correspondence and approval mechanism as part of its green banking &sustainability initiatives. It has been rolled out at some of our geographies along withCorporate Centre and is expected to be implemented in all other geographies by June 2021.

• Your bank has set up a centralized back office in Mumbai tohandle the entire transaction life cycle for foreign offices with a view to improveoperational efficiencies and cost reduction and to enable foreign offices have an enhancedfocus on vital areas of Business Compliance and Risk.

• Your bank has also developed an in-house credit monitoring tool-‘Early Warning Signal' system for focused credit monitoring and identification ofstress signals.

• Your bank has also initiated the Automation project forRegulatory reports for our Foreign Offices during the year and the process has alreadybeen completed for our offices in South Africa and Sri Lanka. The process shall becompleted for 16 more countries in FY22.

3. Commercial Clients Group (CCG)

A. Commercial Clients

The CCG vertical is headed by the MD and supported by two DMDs fiveCGMs ten CCG Regional offices (CCGROs) and three Direct branches headed by GMs. CCG has51 Branches in 8 locations spread across the country. The vertical services the creditneeds of large corporate clients. The Vertical also includes Specialized Branches likeBranches catering to specific industries as well as capital market. The mandate of thevertical is to cater to all needs of this segment of corporate clients to manageassociated risks and sustain growth.

CGMs in the CCG are assigned as the group relationship owners in orderto improve the quality of coverage and enable an integrated view on exposure and earningsamongst others across the entire group. Your Bank has set up experienced team of‘Structuring Specialists' to support deal structuring for large proposals acrosslending bonds International Banking and Structured / Mezzanine Finance.

CCG Mar'20 & Mar'21 Levels are as given below:

(In Crs)

Levels Mar'20 Mar'21
Non-food Advances 415744 408110
CASA Deposit (%) 26.04 23.64
Avg Business per employee 150.26 168.97
Other Income (excluding income from AUCA recovery) 2777 3163
Pre -TPM Operating Profit 33311 32623

YONO Business

CCG along with IT has launched a digital offering YONO Business forcorporate customers which is designed to provide a best in class user-friendly platformfor transaction banking as well as Trade Finance business. Earlier there were fivecustomer interfaces viz. Corporate Internet Banking (CINB) Cash Management Product (CMP)e-Trade e-Forex and Supply Chain Finance (SCF) which have been since re-imagined in asingle platform named "YONO Business". Further for onboarding of customers todigital platform multiple documents and multi-visits to branches were required which

was reduced to a single omnibus document with a single visit to theBranch. User Profile management was enhanced to do away with branch visits. To increasewallet share of Trade Finance business complete digital request for Import LC issuancewas launched. LC Amendment request for closure and View and Manage Transactions LC BillAcceptance etc. are also part of the release. Export LC Advising and Unified Export Billlodgment and Negotiation/ Discounting are being worked upon.

To increase income from Forex business Forex rate booking includingdocument upload facility for a digital journey

introduced. Customer also has an option to negotiate with the dealerabove a predefined threshold. Waiver of physical submission of original/hard copies forcertain type of forex booking will be released. e-Forex on mobile is being planned to bereleased. Digital journeys for Pre-approved Business Loans and request for services havealso been rolled out.

API banking services will be released shortly to Corporates for aseamless payment journey. This will enable payments to be made directly fromcustomer's ERP with adequate security including use of multi-factor authentication.We are also smoothening the funds transfer journeys for corporates to match global best inclass experience.

The group continues to provide a robust platform to its customers forTrade Finance and Forex business. We are in the process of setting up two centralizedprocessing cells (CPCs) to process all trade finance transactions of the Bank. These CPCswill increase efficiencies in a) Delivery - better TAT information flow and customersatisfaction - b) Regulatory compliance and c) Housekeeping.

Digital Interface on Pricing and Knowledge (DIPAK) a new pricing toolhas been made available to Operating functionaries and Sanctioning Committees to enabledata - driven pricing of our Corporate Loans. This has been rolled out in all the branchesin CCG.

B. Project Finance and Structuring SBU

Your Bank's Special Business Unit known as Project Finance andStructuring Strategic Business Unit (PF&S SBU) deals with the appraisal andarrangement of funds for large projects in infrastructure and other sectors such as PowerRoads Ports Railways Airports amongst others. It also covers other non-infrastructureprojects in sectors viz. Metals Fertilisers Cements Oil and Gas amongst others withcertain threshold on minimum Project

Cost. PF&S SBU also provides support to other verticals for vettingtheir large ticket term loan proposals. In order to strengthen the policy and regulatoryframework for financing infrastructure inputs are provided to various Ministries ofGovernment of India and the RBI with respect to lenders views on new policies ModelConcession Agreements and broader issues being faced in infrastructure finance.

There has been step up in investment in Infrastructure sector by thegovernment along with various sectoral reforms and incentives which has resulted ininflow of new projects particularly in sectors such as City Gas Distribution Road PowerRenewables among other sectors. Infrastructure sector is expected to experience a fillipwith the enhanced Capex expenditure of Rs. 5.54 lakh crore along with Performance LinkedIncentive (PLI) Scheme for various sectors announced in the February 2021 budget dulysupplemented by introduction of National Infrastructure Pipeline (NIP) with an estimatedinvestment of Rs.140 lakh crore for supporting 7700 infrastructure projects. Your Bank isclosely monitoring all the projects under implementation and expect to tide over theimpact of the COVID-19 pandemic in a short to medium term.

Marking a shift towards ‘Originate to Distribute' business modelStructuring Team has been set up at PF&S SBU to provide customised structuringsolutions for financing structure of projects while keeping the Return on Equity from thetransaction a priority. Experienced officials have been recruited from different sectorand industries to provide Structuring Solutions to our clients.

4. Stressed Assets Management

1. The movement of NPAs in the Bank and recovery in Written-offaccounts during the last Four Financial years are furnished below:

(Rs. in crore)

Levels FY2017* FY2018 FY2019 FY 2020 FY2021
Gross NPA 177866 223427 172750 149092 126389
Gross NPA% 9.11% 10.91% 7.53% 6.15% 4.98%
Net NPA% 5.19% 5.73% 3.01% 2.23% 1.50%
Fresh Slippages + 115932 100287 39740 54510 29332
Increase in O/s
Cash Recoveries / Up- gradations 32283 14530 31512 25781 17632
Write-Offs 27757 40196 58905 52387 34403
Recoveries in AUCA 3963 5333 8345 9250 10297
PCR 61.53% 66.17% 78.73% 83.62% 87.75%

* Post merger

2. In the backdrop of COVID-19 though it is anticipated to have alarge spurt in NPA Level during FY 2020-2021 your Bank is taking all pre-emptive measuresby extending assistance to its borrowers to face the new challenges and continue asperforming assets. Plowever the current level of NPA has significantly come down due tothe following:

I. RBI's 7th June 2019 circular on prudential frameworkfor resolution of high value distressed assets has provided a new avenue for timeboundresolution of these accounts (out of NCLT process). Your Bank is actively exploringresolution under this mode.

II. Insolvency and Bankruptcy Code (IBC) 2016 for resolution ofStressed assets has provided Bank with a time bound transparent and effective mechanismto tackle stressed assets. Resolution has been achieved in some of high value NPA accountsreferred to NCLT under the Code. The cases referred to NCLT for resolution are monitoredat a specialized NCLT cell at SARG. A total of 900 cases (whole bank) were referred toNCLT as on 31st March 2021 out of which 707 cases have been admitted.Furthermore 112 cases have been resolved including some high value accounts fromRBI's 1st & 2nd reference lists.

III. OTS/Compromise route is also explored for recovery of sticky loansfrom eligible cases. Bank's Board approved OTS Scheme for various productsnondiscretionary and non-discriminatory is also offered to all eligible borrowers formaximizing resolutions.

IV. In non-NCLT cases recovery is explored through action undersArFAESI Act filing of suit in DRTs and Courts. The sale of mortgaged properties isexplored through common e-Auction Platform https:// ("e-Krya" - IndianBanks Auction Properties Information) under the aegis of IBA.

3. Stressed Assets Resolution Group (SARG) for providing focus onresolution of NPAs with sector specific approach. At present the vertical is headed byManaging Director supported by Deputy Managing Director and three Chief General Managersoverseeing the sector-wise portfolio and a CGM (Operations) monitoring the creditportfolio of accounts with an outstanding upto Rs. 50 Cr. and accounts under liquidation.The Account Management Teams functioning under the guidance of Six General Managers. As onMarch 2021 SARG has 17 Stressed Assets Management Branches (SAMBs) and 48 Stressed AssetsRecovery Branches (SARBs) across the country covering 49% and 88% of your Bank'sNPAs and AUCA respectively.

4. Apart from normal recovery a significant portion of the recovery atSARG comes from Compromise and NCLT. The vertical also introduces special OTS schemes(Non-discretionary and Non-discriminatory) from time to time. A team has been set up tolook after the sale of Assets to Asset Reconstruction Companies (ARCs) on Cash and/orSecurity Receipts (SR) basis.

5. Today SARG stands as one of the most important verticals of yourBank and the GNPA of your Bank is on course of a downward journey. Resolution of stressedassets by SARG presents the following latent income generating avenues for your Bank:

• Cash recovery in NPAs and AUCA

• Reduction in loan loss provisions

• contribute to your Bank's bottomline.

• Unlocking the capital for credit extension.

6. SARG introduced certain innovative methods and gave first moveradvantage to your Bank in areas such as arranging Mega e-Auction of large number ofproperties on Pan-India basis. For this purpose the Bank is also making extensive use ofcommon landing platform for PSBs (https:// "e-Krya" - Indian BanksAuction Properties Information).

7. Various new IT initiatives have been rolled out including LITMAS(Litigation Management System) for better monitoring of legal recourses undertaken in thestressed account for expediting recovery. Bank has also rolled out Property Portal toshowcase the assets to prospective buyers with an intention to enhance marketing andbetter realization of value of available assets. It will further strengthen thetransparency and efficiency in the process. Going forward SARG is looking towardscomplete digitalization of the vertical with end-to-end process automation starting fromPremigration of the account to Resolution of the account through a menu driven dashboardsolution encompassing all activities of SARG at one place giving the desired output atthe right time resulting in enhanced productivity efficient use of manpower and optimumresults.

IV. Support and Control Operations

1. Human Resources and Training

A. Human Resources

Your Bank believes that its employees are at the core of its strategiesto achieve all present and future organisational goals. The Human Resources Department ofyour Bank goes beyond the routine and encompasses all aspects of people management bybuilding a positive work culture for realising your Bank's business goals. We believe thatour Human Resources is our strength and will be pivotal in helping us face the newchallenges on the fronts of knowledge technology and changing trends in national andglobal economy.

Your Bank's Human Resource Department is making all efforts foreffective designing and implementation of various HR policies procedures and programsfor developing and managing knowledge skills creativity aptitude and talent and forusing them optimally. The focus of HR has now moved to the strategic utilisation ofemployees and the measurable impact of employee's performance on business. The HRManagement of your Bank continuously aligns its strategies with the ever-changingaspirations of the workforce to increase efficiency and promote participative work culturein the organisation.

1. STEPS: Core Values of Bank

The core values of your Bank have been made into an integral part ofour day-today professional life by including ‘STEPS' under annual performanceappraisal system (CDS) to emphasise upon the importance of "Service TransparencyEthics Politeness and Sustainability".

2. Productivity Enhancement Initiatives

• Your Bank adopts a Branch Manpower Model for Manpower Planningand to ensure optimal utilisation of Human Resources. The model is based on theproductivity parameters at the branches such as 84 work-drivers of operations transactionload factors number of advance accounts feedback from the operating units andorganisational structure amongst others.

• Bank has streamlined its promotion and transfer process andthese are now completed in the first Quarter of a Financial Year. This will give therequired assurance and stability to the branches and other units to actively focus onbusiness activities during the major part of the year. This year majority of promotioninterviews were conducted through video conferencing and despite the challenges posed byCOVID-19 Pandemic promotion exercise was concluded before 30th April 2020that is within one month.

• Your Bank's Career Development System (CDS) under project"Saksham" has been highly successful in ensuring a credible data backedperformance evaluation process. The system ensures strong accountability performancevisibility and greater alignment between individual and organisational goals. CDS hasbrought in a fair and transparent system driven process for assessment of performancewhich also helps in developing employees through a detailed annual competency mappingframework.

• For a Bank with a large footprint and diversified set of rolesspecialised skills are very important to drive success. To ensure deep domain knowledgeand to foster expertise your Bank has defined career paths for its officers in Scale-IIto V as per 7 Job Families viz. Credit & Risk Sales Marketing and Operations HRFinance and Accounts Treasury and Forex IT and Analytics.

• "SBI GEMS" a mechanism to promote recognition anddevelop organization memory of such recognition is in place in your Bank.

• Your Bank has in place a policy on Succession Planning for theSenior Leadership positions to ensure smooth transition at all the critical executivelevel positions. Succession Planning exercise to all DMDs/CGMs/GMs critical profiles hasbeen completed during FY2021. The key outcomes of Succession Planning are to follow upusing the results in a consistent open and transparent manner to prepare and updateDevelopment/Training Programmes and to take Staffing Decisions during posting includingthe relative priority of the developmental assignments that benefit the officer and yourBank.

• Your Bank organised two webinars viz. ‘Put Your Mind atEase' during Oct- Nov'20 to help employees manage their stress and time in a better way.The two webinars were handled by a professionally qualified counsellor and were alsoaddressed by the Chief Medical Officer (CMO) from Corporate Centre. Both the webinars hadbeen taken positively by the employees and were actively participated by 1183 and 764employees respectively.

3. Recruitment

• Your Bank is actively recruiting specialised talent on lateral/contractual basis in the areas of Wealth Management IT Information Security RiskCredit and Audit among other fields in order to meet the demands of the fast-changingbusiness landscape and also to meet the regulatory requirement.

• Your Bank is making extensive use of digital platforms in therecruitment process in order to reach out to a wider pool of candidates. Advertisementsare published on LinkedIn

The summarised HR Profile of the Bank as on 31st March 2021is as under:

Category 31.03.2020 31.03.2021
Officers 106361 108772
Associates 103134 100796
Subordinate staff & Others 39953 36084
Total 249448 245652

and besides publishing our recruitment notification onFacebook and Instagram handles. Use of social and digital media in our recruitment processhas enabled your Bank to reach out to larger pool of tech-savy and aspiring candidates.Additionally your Bank has also tied up with professional bodies such as ICAI in order toreach out to a good talent pool of candidates for specialist positions.

• As a measure to complete the recruitment process in a time boundmanner your Bank utilised the IT platform and conducted the recruitment interviews throughvideo conferencing following the social distancing protocols during the COVID-19 pandemic.This also reduced the long distance travelling through public transport for theinterviews.

4. Gender Diversity

Gender Sensitivity and Inclusiveness have always been the cornerstonesof your Bank's HR policy. Out of the total work force the representation of women is over25.92%. Furthermore the women employees in your Bank are spread across all geographiesand levels of hierarchy.

5. Reservations and Equal Opportunity

Your Bank meticulously follows the Government of India's directives onReservation Policy for SC/ST/OBC/EWSs/ PWD. Your Bank has representation of SC ST OBCsand differently abled persons among all the cadres of its workforce. Your Bank hasimplemented reservation applicable to "Economically Weaker Sections" in directrecruitment w.e.f. 1st February 2019 in terms of the GOI guidelines.

Representation as on 31st March 2021:

Sr. No. Cadre Total SC ST OBC DAPs*
1 Officer 108772 19555 9098 22973 2128
2 Clerical 100796 16237 8090 26159 2340
3 Sub-Staff 36084 8857 2288 8915 214
Grand Total 245652 44649 19476 58047 4682

* Differently Abled Persons

6. Industrial Relations and Staff Welfare

• Your Bank is having a harmonious relationship with the staff andofficers' federations. Your Bank has been continuously emphasising on healthy workenvironment mutual respect and empathy at work-place and a good work-life balance tofoster a healthy and happy workforce.

• Your Bank took a number of transformative initiatives during theyear in the area of Staff Welfare. These initiatives are crucial to ensure that your Bankremains in the forefront of banking in India and our employees are equipped to meet thechallenges of tomorrow.

• Your Bank has introduced payment of fixed Ex-Gratia amount inlieu of compassionate appointment for Rs.1230 lakh in different grades 12 months' salaryand education financial support for the children in the age group of 3-21 years up to thegraduation level for the bereaved family of the deceased employee w.e.f 1stApril 2020.

• To provide more flexibility to the employees in acquiring assetsor taking care of personal requirements your Bank has enhanced the loan limits in linewith market prices.

7. COVID-19 Pandemic

The entire world was impacted by the COVID-19 pandemic leading tounprecedented disruptions across all sections of life and your Bank was no exception. Allthe staff members rose valiantly to the challenge of keeping the banking operationsrunning during this critical period. Your Bank took a number of proactive mitigatingmeasures/initiatives for staff benefit such as reimbursement of expenses incurred onCOVID Tests and Treatment special support of to all the employees found positive due toCOVID-19 and sanction of Special Leave to employees on quarantine to contain and reducethe spread of the virus among the staff members. In the initial phase your Bank alsoprovided monetary compensation to employees who were in the forefront of the operations.These measures ensured

that the employees remained motivated and equipped to handle the crisiswell. Unfortunately some of our members lost their lives while ensuring uninterruptedservice to the customers. For support of the family members of such deceased employeescash compensation was introduced.

The unprecedented challenge posed by the COVID-19 pandemic has also ledus to reinforce the process of continuity of operations and seamless functioning in theBanking Industry. Towards this end your Bank has tried to realign and rework the existing"Work from Home" Policy into a more comprehensive and robust "Work fromAnywhere Policy". The Policy will provide more flexibility to our staff members tocontinue working from alternate locations including home in times of crisis or calamitygiving them freedom to attend to their domestic requirements in addition to performingofficial duties. This will ensure a stable work-life balance for our staff members andwill also lead to less crowding at workplace savings on overhead costs for theorganisation without disruption in the banking activities.

8. Care for Retired Employees

• Your Bank has launched a new scheme named as"e-Pharmacy" for providing domiciliary facility under SBI Health Assist GroupMediclaim Policy for retirees. An arrangement has been made with Lifetime Wellness RXInternational Limited popularly known as M/S Apollo Life for providing pharmacy servicesto the members of annual payment plan through an App named "URWORLD".

• Your Bank has rolled out the facility for obtaining lifecertificates through "Video based identification" in MyHRMS app. It is afacility for contactless submission of life certificate without visiting the Branch bystaff pensioners and can be subm itted through MyHRMS app from any Android or iOS mobileat the convenience of pensioner. Auto Email/SMS is generated in all cases ofapproval/rejection. This facility is in addition to existing physical submission ordigital submission through Jeevan Pramaan.

• Your Bank is introducing one-time nomination facility forpensioners. The nomination facility is in addition to existing nomination facility foraccount balances of pensioners. The facility shall facilitate settlement of pensionarydues due to stoppage of pension non-submission of life certificate and subsequent demisearrears on account of retrospective wage settlement under bipartite settlements revisionson account court directives and revision in dearness allowance amongst others.

B. Strategic Training Unit

The extraordinary circumstances of FY2021 have been an ultimate test ofleadership and forethought. Your Bank's response to these recent black swan events is anoptimised and resilient training system that is strategically tuned into the long-termbusiness goals.

During these times we utilised pandemic engendered limitations todrive user ease through online learning promote pull mode of learning teach new skillsand broaden the knowledge horizons of our workforce. As a result our initiatives garneredglobal recognition significantly reduced training expense for your Bank and at the sametime enabled consistent delivery of sophisticated and interesting learning experiences.

The innovative measures undertaken by our over 400+ strong team ofin-house educators and banking experts at the 6 Apex Training Institutes (ATIs) and 51Regional Institutes of L&D (SBILDs) are mentioned below:

Hitherto classroom training was the mainstay of training with judicioususe of e-channels. However to provide constant learning support despite impairedmobility a robust virtual learning system which is capable of connecting the manifoldfunctionaries and providing a deep understanding of contemporary circumstances was theneed of the hour.

1) Perfecting Agile Delivery Channels: For creating a resilient onlinetraining network your Bank undertook the following steps:

i. To foster learner interest and ensure learning retention arepertoire of "Blended Learning" strategies such as videos pre-reads casestudies quizzes interactive and recorded webinars were brought into play.

ii. The Faculty was rigorously coached in delivering effective andengaging online interactions through external trainings and simulation courses.

iii. All stakeholders associated with imparting training were onboardedon a single virtual platform.

iv. An in-house automated centralised training calendar managementsystem was instituted.

v. All this resulted in an enhanced interface between employees andfaculty with nearly 51000 webinars successfully conducted and 73% of staff having atleast 1 live interaction with the Faculty and Subject Matter experts. On an average eachemployee attended around 11 webinars in FY2021.

2) Complete Remodelling of the content:

i. For New Inductees: All induction programmes for ProbationaryOfficers/ Trainee Officers and Award Staff (Junior Associates) have been executedvirtually. Your Bank also spearheaded creation of a comprehensive common training programfor newly recruited officers of all the Public Sector Banks. This was launched on 1stOctober 2020 by the Hon'ble Finance Minister.

ii. For all employees up to the Senior Management level: As a part ofmandatory learning the following is being offered to the employees:

a. e-RBC: In addition to RBI Mandated certifications in five domainsyour Bank has created 45 niche Role- Based Certifications for around 2 lac employees (RBCacquired by 96% Officers and 98% Award Staff). During the year all of these 45certifications have been completely migrated to the e-platform by creating a digitalrepository of pre-reads video tutorials and interactive webinars followed by an onlineassessment.

b. e-Lessons: 5 for digital skill building and 5 for Compliance havebeen crafted for promoting compliant and sound business practices suited to the newparadigms. 95% eligible employees completed these 10 gamified e-lesson.

iii. For Top Executives:

a. Online Assessment Centre (OAC):

We have initiated assessment of leadership competencies based on anOnline Assessment Centre. Individual Development Plans charting areas of strength anddevelopment will be provided to each participant. Additionally several MOOC platformofferings have been shortlisted based on competency needs.

b. Immersive Credit Skilling: To make a positive difference in theeconomic scenario requires adroit handling of credit portfolio while resolving off-beatsituations. Accordingly all business leaders of DGM rank have been imparted intensivetraining in solution oriented credit decision making.

Accordingly all business leaders of DGM rank have been impartedintensive training in solution oriented credit decision making.

3) Industry Connect: Awareness of contemporary issues is essential toeffectively negotiate the prevalent changes and disruption. Accordingly the followingknowledge rich resources were harnessed:

i. Industry Associations: Collaborative programmes were rolled out withprestigious organisations such as ICAI FEDAI and CARE to sensitise the workforce and keepthem abreast of the current situation.

ii. MOU: Your Bank inked an MOU with a global front-runner forstrategic collaboration in Executive Education.

Your Bank has also entered several MOUs under its "UniversityConnect" for collaborative training of students.

4) Redefining the Scope of Training:

i. ‘Samunnati' a Participative Coaching intervention for Branches:To enable the Branches to become more goal- driven and competitive a radical coachingintervention based on ‘Action Research model' has been rolled out. Action Researchinvolves participation of the unit undergoing transformation. It is a dynamic approachwhich interlinks elements such as problem identification planning action and impactassessment. Under "Samunnati" faculty members of Regional L&D institutesadopted one branch each across pan-India to extend guidance and learnings for viablegrowth- models along with significant case studies.

ii. ‘SBI Wizards' Fostering Positivity: An online quiz event"SBI Wizards" was rolled out in FY2021. The Quiz was the first of its kindinitiative hosted on a large scale and was structured as a hybrid event (part self-pacedpart online and part physical). In line with the positivity theme the participant groupwas widened to include one family member of the employee.

iii. Fostering Positivity and Emotional wellbeing: To engender apositive approach several initiatives such as podcasts "SBICB-On-Air" webinarson "staying fit" and "building mental resilience" contemplativeexercises like "Samya - A time to ponder" virtual power talks by luminaries andprogrammes on inclusive workplaces like "Samya-leave no one behind" wereundertaken by your Bank.

iv. Building Inclusiveness:

11 exclusively designed collaborative webinars for 596 PwD employeesensured that the employees remained engaged with your Bank even during exemption fromattending office during the pandemic.

v. Online Peer Learning tools: Social Learning received a fillip withmore than 60000 employees participating in the online "Case Study DiscussionBoard" built around sharing of individual views and experiences on real-life casestudies. The daily online quizzing portal "My Quest Today" was also accessed bymore than 90000 employees to test their knowledge levels. The urgent realtime operationalknowledge need has been addressed by enhancing features and knowledge bank of searchengine askSBI - 92% of Branches have utilised it.

vi. Stepping Up as Strategic Influencers:

a. Anweshan: Having a diverse and multi-generational workforcetranslates into innovative work practices emanating from every corner of the country.During FY2021 we launched "Anweshan" which is an e-publication fordisseminating these best practices for improved business outcomes across your Bank.

b. Partnered Research: To rapidly translate the ongoing changes in thefinancial eco-space into competitive advantage the Research Wings at ATIs partnered withBusiness Units for 51 relevant and practical studies.

c. Post-Doctoral Research Fellows: For establishing our pedigree inleadership training our PDRFS were leveraged as academic emissaries to establish ourunique credentials into applied leadership training. They also networked to connect toglobal clientele and International thought leaders.

5) Expanding our Footprints:

Leveraging our capability in conducting Virtual Trainings we were keento test the mettle of our inhouse offerings and optimally utilise our training resourcesin the external arena. Accordingly the following initiatives were undertaken:

i. Launch of Webpage: STU webpage

was launched on the Bank website to facilitate exploration/nomination

for our online courses and contains comprehensive details of all thedigital and other initiatives offered by us in the learning space as also the feasiblemodes of delivery.

ii. MOOCs on edX: Your Bank is the first Corporate organisation inIndia and second financial institution in the world (after World Bank) to host in-houseMOOCs on edX. So far thirteen MOOCs have been launched and have received enthusiasticmarket response.

iii. e-Panel Discussions: During the year more than 30 onlinediscussions were organised in the presence of eminent academicians and industry experts toprovide a platform for sharing best practices that are relevant to the current economicscenario.

6) Sustainability at Core: With the understanding that the greatestthreat our planet faces is the belief that someone else will save it all our ATIs &SBILDs have pro-actively and intensively internalized ecoeffective practices like- captiveSewage Treatment Plants (STPs) with recyclers vermi-composting for recyclingbio-degradable wastes usage of solar panels/ Solar Plants to reduce conventional-sourcepower consumption rain water harvesting and ensuring all our premises (ATI & SBILDS)are "Plastic Free Zones" with ban of single-use plastic. Most of our ATIs havebeen rated either Platinum or Gold by Indian Green Building Council and are also ISO9001:2015 certified.

7) Awards: Your Bank has won five prestigious Brandon Hall Excellenceawards 2020 for "Best Use of Blended Learning" "Best Learning Programsupporting a change Transformation Business Strategy" "Best unique orinnovative Learning & Development Program" "Best Advance in Technology forCrisis Management" for e-RBCs and "Best Advance in Social LearningTechnology" for e-Gyanshala.

2. Information Technology

A. Network Infrastructure Improvement

To deal with the COVID-19 pandemic crisis your Bank had taken severalinitiatives during the year to ensure smooth processes.

Your Bank arranged 600 connections of 4G connectivity for mobile vanATMs to ensure the ease of cash withdrawal during peak pandemic period.

Your Bank has ensured proper network connectivity during the two majorcyclones viz. Amphan in Kolkata (in May 2020) and Nisarg in Mumbai and Maharashtra circles(in June 2020) and made sure that none of the digital channels suffer and our customers inthe affected area may undertake their digital journeys as effortlessly as before.

Your Bank is relentlessly working on improving the network experienceand minimise branch isolations. Several unreliable and high-latency network links havebeen replaced with low-latency wired and terrestrial wireless links.

Your Bank in its endeavour to better manage its network operations isin the process of establishing two advanced AI/ ML and Analytics based Network OperatingCentres (NOC-1 and NOC-2).

B. Work from Anywhere (WFA)

Your Bank swiftly deployed Virtual Private Network (VPN) to empower theoperational staff across India to Work From Anywhere (WFA) and ensure"Business-As-Usual". Despite the lockdown annual closing exercise was conductedwithout any glitches. WFA has been accepted as a new norm in your Bank. Manyadministrative and operational activities in domestic and foreign office/branches arebeing carried out remotely through WFA facilities.


YONO the most ambitious path-breaking and secure digital offering ofyour Bank launched in November 2017 has grown significantly in terms of volume whichshows its acceptance amongst users.

YONO has already crossed 70.5 million downloads has a registered userbase of 37.09 million and average daily logins of around 10 million. YONO is a singletouchpoint and one-stop solution for various Banking Financial and Lifestyle needs of thecustomer through a convenient intuitive and user-friendly interface offering thecustomer one view for an enhanced digital experience.

Customers can conveniently avail preapproved loans online and getimmediate disbursement without visiting the branch and with zero paperwork. YONO Quick Payoffers convenient payments/fund transfer without logging into the main application. Manynew products/features have been launched like KCC review P-segment gold loan instaaccount opening through Aadhar OTP based e-KYC authentication and pre-approved agri loan(SAFAL).

YONO Krishi launched in July 2019 with features such as agri gold loanYONO Mandi and YONO Mitra cater to the banking and agricultural needs of farmers througha digital platform.

YONO provides exclusive shopping deals from 100+ leading merchants suchas Amazon Myntra Flipkart Uber OLA Zoomcar Yatra Cleartrip IRCTC Redbus MedlifeVLCC Agricart BigHaat and Kisan Store amongst others on a single platform.

D. Channels and Operations

1. Payment Aggregator and Payment Gateway (e-Pay & PG)

Your Bank works both as payment aggregator and payment gateway whichis a unique PCIDSS certified secured platform for facilitating seamless e-commercetransactions between businesses merchants Customers and financial institutions forvarious kinds of payment modes. The platform is provided through our Payment Aggregator(SBI e-Pay) and Payment Gateway (SBIPG) applications by integrating with thousands ofMerchants on the one end and large number of Payment Channels such as Banks Wallets andCards at the other end. SBIPG processes all debit/credit card transactions of PaymentAggregators SB Collect SBI - MOPS and YONO.

2. Payment System (PS) and Cash Management Product

Your Bank holds a major share in NEFT outward remittances with 27.88crore transactions with over 9.01 % market share. In RTGS 1.86 crore outward transactionswere effected during FY2021 implying a market share of over 11.72%. Your Bank providesRTGS/NEFT facility to all its customers on a 24x7 basis and using the secure SWIFTmessaging platform for transmitting cross border financial and non-financial messages.

Cash Management Product is a technology-driven platform for straightthrough processing of bulk transactions of corporates and governments.

The various types of businesses handled by CMP system are summarisedbelow:

a) Payments for Government of India State Governments Ministry ofDefense Railways Various Corporates

b) Cash and Cheques Pick-up and deposits

c) VAN-based collection of cash cheque collection and e-collections(NEFT RTGS INB)

d) Digi-dealer mobile app and web base cash and cheque collections

e) Liquidity and Mandate Management

During the year your Bank has extended VAN based Collection toprestigious clients such as Vodafone Idea Ltd Nayara Energy Haldia Petrochem Ltd BSNLand BSES Energy amongst others. API based integrations for validating dealer data andpushing MIS are being promoted in a big way for improving customer experience.

<p >3. Foreign Office

Your Bank has introduced Open Banking (OB) in UK following instructionsof European Banking Authority (EBA). The technological solution is hosted on Meghdootinfrastructure and was made live for our European Branches and Bahrain to meet thecritical Regulatory requirement. Your Bank now has the capability to introduce OB in othergeographies as and when required by other Foreign Offices. Few of newly launchedfunctionality are mentioned below:

a) SBI YONO Global Mobile application has been launched in Mauritiusand Maldives in addition to UK

b) USD remittance is available to Mauritius customers

c) OTP on mail is available to the customers of Bahrain MauritiusMaldives Hong Kong South Africa & Sri Lanka

d) Customers of Nepal Mauritius Singapore Bangladesh MaldivesOman Bahrain UK Hong Kong

and South Africa can use ATM Management services from FEBA whichincludes ATM Card Limit change Usage change and Channel Change

High Interest Savings Account (HISA): Creation of new product forgiving variable higher rate of interest benefit to the customer during first year ofaccount opening in Canada rolled in production on 24th September 2020.

4. ATM

Your Bank's ATM department is PCI-DSS Compliant which is a benchmarksecurity standard for payment card industry and stands tall with 26.51 crore active cardsas on 31st March 2021.

Following new facilities have been rolled out during the fiscal:

• YONO QR based cash withdrawal on SBI MVS ATMs/ADWMs using YONOLite Application up to Rs. 4000 per day

• Generation of Green PIN on SBI Automated Deposit and WithdrawalMachine ADWMs

• Generation of Green PIN Blocking of Debit Card and Issuance ofReplacement card Issuance through IVR

• Card Issuance Tracking for Customers through INB

• TLS 1.2 implementation has been completed in all MVS ATMs (CAPEXand TOM ATMs on MVS) to strengthen the security between ATM Machine and Network

5. Internet Banking

Internet Banking continues to provide seamless online experienceoffering secure and diverse banking services to 802.92 lakh Retails Users and 28.50 lakhCorporate Users.

Many new services were rolled out for Retail customers like OTP overemail to Resident Indians SMSes in Hindi Real Time Multiple Demand Loan for e-commercetransactions. Keeping in view increased cyber threats the security of customer accountswas further enhanced by introducing Captcha at Login (Image & Voice) provision toLock/Unlock INB

access facility to Enable / Disable UPI as mode of payment.

For our corporate customers a Unified corporate banking setup - YONOBusiness providing Single Sign-On for customers to access five applications viz. CINBCMP SCFU e-Trade and e-Forex was launched. Additionally new to digital customers wereprovided online onboarding of CINB e-Trade and e-Forex. Other end-to-end digitalofferings were (a) Debit card authenticated onboarding for Saral customers and (b)Pre-Approved Merchant Loan - a digital loan product for Saral customers. An Online Accountopening facility was also launched for nonindividual accounts like Sole ProprietorshipPartnership and HUF entities.

Over 19592 merchant integrations have been done during the year tofuel the e-Collections e-Payments and e-Commerce eco systems. VAN-based funding for PSUswas provided for Govt e-Marketplace. Additionally online e-Mandate creation for paymentof EMIs and other recurring amounts launched.

6. Yono Business

Your Bank's yonoBUSINESS offering for MSMEs Corporate and Governmentcustomers is designed to focus on three pillars of the digital transformation:

i) One Bank One Platform building an omni-channel digital platformintegrating CMP Corporate INB e-Trade e-Forex and Supply Chain Finance under SingleSign On

ii) Digital bank offering seamless end- to-end digitised customerjourneys

iii) New Age Banking to future proof the technology priorities such asAPI banking

The three pillars are built on strong foundational capabilities acrossways of working (cross-functional garage construct) modern technology architecture andskills (Agile product management) to sustain the transformation. It digitally servesmultifarious Banking interface requirements of all types of non-individual entities; rightfrom a small proprietorship/ MSME to large multinational corporates to Central and StateGovernments.

Amongst other facilities and features for non-individual customers itprovides:

• Simplified and intuitive onboarding journey for new to Digitalcustomers

• Existing legacy document process has been replaced with newomnibus document eliminating multiple visits to Branches. Digital onboarding for walk incustomer through YONO Business Branch interface

• Additional Product offering for existing customers

• Corporate user management as end to end digital journey toCorporate Administrator for user management ensuring security and convenience

• Intuitive Dashboard made available to Corporates with featuressuch as Consolidated real time account positions of A&L Fund flow position alertsand notifications like LC due date and instalments due date amongst others

• Re-imagined import LC journey and Forex rate booking in less inless than 15-20 minutes without the requirement to visit the branch

"You Only Need One" yonoBUSINESS is the umbrella under whichyour Bank's corporate digital transformations take shape. It is different not only interms of what it promises to deliver - in scale scope and the use of technology such asAPI banking but also how it aims to deliver it - through adoption of an agile approach incross-functional development squads to foster speed in innovation.

One of the largest digital transformation initiatives undertaken by anybank for their corporate customers yonoBUSINESS spans across all corporate streams/departments - from Account Opening Payments to Trade and Advances. Working on theend-to-end digitisation yonoBUSINESS aims to redefine the way the bank and its customersapproach to corporate banking.

E. Mobile Banking

Your Bank's Mobile Banking department is the second largest alternatechannel in terms of volumes after ATM. It handles various critical customer facing mobileapplications and services.

1. UPI

Unified Payments Interface (UPI) is one of the flagship applications ofyour Bank that powers multiple bank accounts into a single mobile application (of anyparticipating bank) merging several banking features seamless fund routing and merchantpayments into one hood.

2. YONO Lite

During FY2021 following facilities were introduced for the customersthrough YONO Lite:

a) Cheque lodgement through Positive Pay System

b) QR Code based ATM cash withdrawal

c) RTGS 24*7

d) SIA Chatbot

e) Apply IPO

f) Debit card issuance tracking

In addition to the above availability of the App in 11 regionallanguages (Kashmiri Assamese Telugu Tamil Kannada Malayalam Gujarati MarathiPunjabi Odiya and Bangla) has also been initiated for user's ease.

3. SBI Quick

During FY2021 following facilities were introduced for the customers:

a) Cheque lodgement through Positive Pay System

b) SMS and Missed call-based loan lead generation for Personal loanGold loan Home Loan and Car loans

c) Mobile Top-up and Recharge facility

d) SBI Samadhaan consolidation in SBI Quick app

e) Availability of the App in 12 regional languages (Kashmiri KonkaniKhasi Telugu Tamil Kannada Malayalam Gujarati Marathi Punjabi Odiya and Bangla)

4. SBI Secure OTP

Revised registration process (SIM based registration) for SBI SecureOTP has been implemented for more security and to safeguard the interest of the customers.

F. Executive Support System

1. Customer Relationship Management (CRM)

CRM provides a state-of-the-art solution for the integrated managementof sales service and marketing activities. It has a built-in campaign management modulesand ensures the timely delivery of service. Complaint management module in CRM has nowmigrated to more sophisticated and advance system that is CRM-CMS wherein customerentire trail of previous complaints and other details are captured in the applicationgiving ease to users and customer for complaint lodgement tracking and resolution. Few ofthe customer centric projects initiated during the year are as follows:

• Deceased claim settlement through CRM for hassle free claimsettlement

• Internal Ombudsman workflow for rejected complaints

• Automation of identified services through Registered MobileNumber (RMN) and IVR

• Launch of Circle Call Centre where Bank's employees attend thecall referred by Contact Centre

• AI-Based email handling solution for immediate segregation ofcomplaint for faster resolutions

• Complaint category for grievance on COVID-19 ex-gratia payment

• Door-step banking facility

• Compliance of Government's EASE 3.0

2. Data Warehouse

Your Bank is implementing a best in class Data Warehousing solution"Next Gen Data Warehouse" in order to accommodate the growing volume of Datawith the aim to become the Single Source of Truth for all data purposes of your Bank. Anadvanced analytical platform with component such as Data lake and Virtualisation Layeramongst others is being implemented to enhance the analytical capabilities of your Bank.

3. Data Governance

Data being considered as the new oil needs to be properly treatednurtured and protected throughout its life cycle. Your Bank has already put in place anenterprisewide Data Governance Structure in the form of Data Governance Councils (DGCs) atCorporate Centre Business Verticals Circles and AO levels supported by Data GovernanceOfficers (DGOs) at each level. This robust Data Governance ensures sustained growth andcompliance with evolving Regulatory laws regarding data privacy.

4. Business Intelligence Department

Following the principle of Single Source of Truth (SSOT) your Bank hasdecided to make the Business Intelligence Department (BID) to be the SSOT for all types ofreports/ dashboards (Regulatory as well as MIS). BID has developed various Dashboardsencompassing all the critical business areas which need to be adopted in true sense foroptimal utilisation. Adoption of these centralised dashboards will also reduce dependenceon multiple data sources thereby reducing the Data-Stress for the Operating functionaries.

5. Analytics

Your Bank is steadfastly using and enhancing its analytics capabilitiesby using AI/ML for improving efficiency reducing risk and growing business. Some of theprojects executed during the year using analytics were:

a) Digital Lending: Business Growth through e2e Digital lending throughproducts such as Pre-approved personal loan (PAPL) Pre-approved Business loans Two-wheeler loan and POS online EMI amongst others. Additionally a new AI based model hasbeen developed for SME New to Bank (NTB) customers.

b) Analytics to mitigate risk by using AI driven models: Established afraud prone branch model to identify high risk branches. Furthermore ATM suspiciouschargeback model for identification of suspicious chargeback complaints has also beenimplemented along with EWS models for early signals of stress in borrowers. IntelligentSampling of Vouchers (ISMOVVR) model for Identification of outlier vouchers forre-verification and to prevent frauds has been initiated.

c) Operational efficiency: Staff Optimisation and ATM networkoptimisation is being carried out through the footfall model and ATM win-back modelrespectively. Additionally ML based charges model to prescribe branches for properclassification. NLP based ML model to control income leakage.

6. Cyber Security

Your Bank has a robust Cyber Security framework in place. Your Bank hasa Cyber Security wing which conducts ethical hacking on Internet facing applications.This is a proactive step taken to plug the loophole in applications before it isdiscovered and eventually exploited by any outsider. There is an approved StandardOperating Procedure (SOP) for Internal Ethical Hacking by the staff. Your Bank encouragesits staff members to perform ethical hacking attempt on your Bank's infrastructure.

Your Bank has also initiated measures to put in place Next Gen GlobalCyber Security Operations Centre (NGGCSOC) with advanced technologies and best in classproducts leveraging AI/ML capabilities to strengthen the Cyber Security Posture of yourBank. As on date the NGGCSOC deployment is underway.

Your Bank has implemented Proactive Risk Management (PRM) solution tocombat attacks such as phishing credit card frauds internet banking frauds and mobilebanking frauds amongst others. Laced with robust data analytics AI & ML PRM iscapable of detecting and alerting fraud and suspicious account and transaction activitywhile facilitating effective counter measures.

Your Bank is fully complied with all the 21 mandatory controls and 10advisory controls prescribed by the SWIFT.

G. Core and Special Projects

1. Special Project

Your Bank has initiated number of special projects for ensuringcustomer convenience. Few of the projects are mentioned below:

a) Foreign Inward remittance to PM Care account: Developments in RupeeFlash API platform and Rupee Express Application have been launched to allow foreigninward donations into specially designed PM Care Account to fight Corona Virus Pandemic.

b) Parking payment through FASTag:

Integration of GMR International Airport Parking facility at Hyderabadwith NETC SBI FASTag. This is a pilot project initiated by NPCI to enable the customersto pay parking charges through FASTag.

c) I-Meeting application: I-Meeting application has been successfullyextended to the 17 LHO for conducting their Quarterly Local Body Meeting (LBM) meetings.

d) CKYC Signzy Scanning Solution:

AI Based scanning application for speedy and error-free scanning thedocuments in CKYC formats.

e) Pension Seva: Revamp of Registration in Pension Seva through mobileOTP. This will enable pensioners to avail a range of facilities without visiting thebranch.

f) Issuance of immediate PRAN Card: Photo and signature upload facilityat branches for NPS registration to facilitate immediate PRAN Card issuance by CRA to thesubscribers without waiting for physical copy of application.

g) CKYC for FI Accounts: As per regulatory compliance CKYC process forFinancial Inclusion accounts implemented and made operational on 1st September2020.

h) Aadhaar Masking: As per compliance Aadhaar Masking was implementedat CKYC and other channels on 3rd October 2020.

i) Photo and signature upload facility at branches for NPS registrationto facilitate immediate PRAN Card issunace by CRA to the subscribers without waiting forphysical copy of application.

2. IT-Corporate and SME Loans

Your Bank captures the entire journey of Corporate and SME Loansthrough its in-house developed Loan Life Cycle Management System (LLMS) the entire lifecycle of the credit process is automated leading to standardisation of the credit processenhanced risk management and improved user experience and TAT.

During FY2021 following major new offerings were initiated under theLLMS:

Pre-Approved Business Loan (PABL)

PABL is a digital pre-approved loan product for your Bank's existingcurrent account customers based on the cashflows in the account. The loan is provided formeeting the customer's multiple requirements related to their business activity. In thisdropline overdraft account is opened and no primary and collateral security is required.

Guaranteed Emergency Credit Line (GECL) 1.0 & 2.0

Based on the directions of RBI and various initiatives of theGovernment of India your Bank has launched GECL 1.0 & 2.0 to provide finance onliberal terms to the units affected by the COVID-19 pandemic.

Through these products your Bank made available additional creditfacilities to the eligible existing borrowers by way of ad-hoc facilities that isGuaranteed Emergency Credit Line (GECL) to tide over the current crisis situation.

Digitalisation of Stressed Assets Recovery Group (SARG)

Various formats and process flows of SARG have been digitalised withend to end process on the LLMS platform. The Sanctioning Committees have also been createdin the LLMS. Digitalisation of SARG has resulted in standardisation of the proposalformats process flows and creation of corporate memory.

3. IT-Retail Loans

The system caters to technological developments related requirementspertaining to sourcing processing underwriting and disbursement of retail loans throughLoan Originating System (LOS) Personal Banking (PB) LOS(Agri) and Retails Loan ManagementSystem (RLMS). The lead sourcing and loan collections are handled through Online CustomerAcquisition System and Loan Collection System application respectively.

a) LOS PB: Over 21000 branches/ RACPCs/RASMECCCs/RBOs and more than100000 users are linked to application. During FY2021 a total of 1925295 loanaccounts amounting to Rs. 225933.17 crore have been sanctioned.

b) LOS Agri: Over 24000 branches/ RACCs/RBOs and more than 150000users are linked to application. In FY2021 a total of 6182327 loan accounts amountingto Rs. 98465 crore were sanctioned.

c) RLMS: Over 21021 branches/

RACPCs/RASMECCCs/RBOs and more than 100000 users are linked toapplication. In FY2021 approximately 25 lakh loan accounts amounting to Rs.100000 crorewere sanctioned.

Major implementations: Retail Loans: in RLMS during FY2021

a) RLMS an end to end digitised platform has already seen theprocessing time for the loan journeys coming down drastically by taking only 10 minutesthereby resulting in increased business.

b) In RLMS Pension Loan Personal Gold Loan Xpress Credit and SmartHome Top-Up Loan products were launched PAN India during the year.

c) Development and CUG roll out of Home Loan journey was also done inRLMS during FY2021.

d) RLMS is also being integrated with

YONO and CRM for processing applications that are sourced through thesechannels. Besides development and CUG roll out of DDE functionality for Xpress Creditloans has also been undertaken.

Furthermore your Bank has also focused on the development of RTXC loanjourney including DDE functionality and launch of CUG.

e) With the proposed rollout of remaining products during FY2022 inRLMS your Bank expects increased efficiency and user experience improvement in TAT andgrowth in your Bank's business.

4. Customer Service

Your Bank has put in place a robust online Complaint Management System(CMS) where customers can lodge their complaints / feedback / suggestions online throughour website In addition to this your Bank's Contact Centres operate24*7*365 in different geographical areas servicing its customers in Hindi English and 10major regional languages. For improving the quality of resolution of customer grievancesit has established Circle Complaints Resolution Centres (CCRC) in all Circles. The CCRCwill free the Branches from complaint handling and ensure better utilisation of time forbetter customer service and business development. Your Bank has also established CircleCall Centres with its own staff for handling any issue beyond the purview of our regularContact Centres so as to ensure a better customer experience. The CCRCs have handled 7.91lakh cases during the current financial year. Similarly CCCs have handled a total casesof 1.72 lakh during FY2021. Your Bank has conducted a campaign ‘Grahak Santrupthi'during the period Aug'20 - Oct'20 for reduction in complaints in three categories Transferof Accounts Deceased Account settlements and Staff Misbehavior Complaints which resultedin reduction of 73% 64% and 44% respectively. Proper and timely resolution of customergrievances is our high focus area. We are conducting Root Cause Analysis of major areas ofcomplaints and are utilising the findings for product and process improvement. Countrywide E-Town hall meetings were conducted in 464 centres to collect feedback from thecustomers regarding your Bank's products and processes. A total of 12201 customersparticipated in the meetings.

With structural transformation to digital banking your Bank is in theprocess of leveraging the CRM Tool to use analytics and artificial intelligence. Your Bankbelieves that these digital tools and technology can completely transform the customerexperience in the days to come. Furthermore it has introduced 5 Registered Mobile Numberbased services from Contact Centre which have helped the clientele in these testingtimes. Additionally your Bank is in the process of revamping the Contact Centreoperations with state-of-the-art technology and to harness untapped potential.

Even during these difficult times of the COVID-19 pandemic Your Bankhas conducted virtual customer meets for seeking customer feedback for improvement incustomer experience. It has also conducted programmes to sensitise the Branches forproviding good Customer Service. With the launch of the Doorstep Banking the customerscan avail ten doorstep services such as Account statement Cash withdrawal facility LifeCertificate submission etc. Pensioners can avail this facility for submitting the LifeCertificate without visiting the Branches. Virtual Pensioners meets were also conducted toinform the Senior Citizens on the benefits and the ways in which they can avail of theDoorstep Banking Services. Your Bank has introduced the concept of Floor Managers in over2400 branches for enhanced customer experience.

H. Financial Inclusion and

Government Schemes (FI&GS)

To enhance customer convenience and customer delight following newfacilities were introduced during the FY2020-21:

a) Multi Device Login: Implementation of KO (Kiosk Operator) familyconcept with KO family consisting of a KO and maximum of 5 sub-KOs. Through this servicethe Customer Service Point (CSP) is able to offer the services through multiple nodessimultaneously within. This will enable the CSP to provide service through more than onedevice (maximum Six) using a single CSP code replicating a branch set up.

b) EMV enablement on MATM: Micro ATMs (MATMs) in the BC channel havebeen made ready for acceptance of EMV chip cards which helps in reducing the riskassociated with magnetic stripe cards.

c) Passbook Printing for FI & non- FI customers: Passbook of allthe customers can be updated at the CSP outlet through bar code validation. Passbookprinting at CSP location has helped in decluttering of the branches.

d) Voice prompt: Voice Prompt while performing transactions at CSPoutlets rolled out in Hindi English Tamil and Telugu. It acts as a risk mitigant forilliterate/semi-literate customers as they can hear the details of the transactions beingperformed in their account.

I. Trade Finance

Your Bank caters to e2e Trade Finance requirements of our customers -both Inland & Cross Border.

Eximbills Enterprise (EE): EE is the

centralised technology platform facilitating Trade Financetransactions. The Web based application uses latest technology and has STP capabilitieswith various systems enabling bank to meet market requirements. It has a seamlessreal-time integration with multiple applications for smooth transaction flow. Thecentralised structure helps in risk management by standardising the operational processesand provides MIS for decision making and statutory and regulatory reporting.

Customer Enterprise (CE / e-Trade): SBI e-Trade also known as CustomerEnterprise (CE) is a unique Digital platform is a One-Stop centralised applicationseamlessly integrated with EE as well as Core Banking System to satisfy needs of corporatecustomers for their Domestic Trade Finance & International TF.

CE's unique and highly configurable User Management allowsCorporates to operate with ease comfort and flexibility. Some of the unique featureslike Corporate group level view of all sub-companies Trade Portfolio One-view DashboardNotifications and Alerts Digital Document Submission etc. adds to the customer'sexperience and delight.

During COVID-19 situation and lock-down durations CE has played a verycrucial role in helping Corporates to continue their Trade finance businesses digitallywithout any interruptions and thereby facilitating a strong push for ‘AatmaNirbharBharat' vision of Govt of India.

Centralised SWIFT Interface Gateway (CSIG): CSIG is a centralisedmessaging system for cross border transactions over the SWIFT network. It is an integratedweb- enabled messaging software that runs centrally and accessed by the interface channelsand branches facilitating the electronic exchange of financial and nonfinancial messages.

Award Category Remarks
IBA Annual Best Payment Initiatives Winner
Banking Best Digital Financial Winner
Technology Inclusion
Awards 2021 Most Innovative Project Winner
Best use of Data Analytics Runner-up
Banking Finnoviti Award 2021 Winner (AI /ML models like Project
Frontiers Finnoviti Award Shikhar & Recommendation Engine)
M & O Certificate by M/s Uptime Maintenance & Operations Certificate of Data Centre • Gachibowli Data Centre awarded the M&O certificate (Stamp of Approval) from Uptime Institute
Institute USA • Only Data Centre in the BFSI sector in India to Achieve M&O award by Uptime Institute

3. Risk Management

A. Risk Management Overview

Risk Management at your Bank includes risk identification riskassessment risk measurement and risk mitigation with its main objective being to minimisenegative impact on profitability and capital.

Your Bank is exposed to various risks that are an inherent part of anybanking business. The major risks are credit risk market risk liquidity risk andoperational risk which also includes IT risk.

Your Bank is committed towards creating an environment of increasedrisk awareness at all levels. It also aims at constantly upgrading controls and securitymeasures including cyber security measures to ensure avoidance or mitigation of variousrisks. Your Bank has policies and procedures in place to measure assess monitor andmanage risks systematically across all its portfolios.

An independent Risk Governance Structure in line with internationalbest practices was put in place in the context of separation of duties and ensuringindependence of Risk Measurement Monitoring and Control functions. This frameworkvisualises empowerment of Business Units at the operating level with technology being thekey driver enabling identification and management of risk at the place of origination.The various risks across your Bank and the SBI Group are monitored and reviewed throughthe Executive Level Committees and the Risk Management Committee of the Board (RMCB)which meets regularly. The Risk Management Committees at operational unit and businessunit level are also in place.

1. Credit Risk Mitigation Measures

Your Bank has put in place strong credit appraisal and risk managementframeworks for identification measurement monitoring and control of the risks in creditexposures. The industrial environment is scanned researched and analysed in a structuredmanner by a dedicated team for deciding its Outlook and growth appetite for 39 identifiedindustries/sectors which constitute close to 70% of your Bank's total advances (excludingRetail and Agri). Risks in these sectors are monitored continuously and whereverwarranted the industries concerned are reviewed immediately. Impact of the COVID-19pandemic on your Bank's portfolio is tracked very closely. Your Bank identified corporatesthat may require additional assistance very early in Q1 of FY2021 which facilitated quickremedial measures. In addition to this various analyses were undertaken to proactivelyidentify probable stressed portfolios and necessary remedial measures were taken in time.Similarly impact of the pandemic on multiple industries such as NBFC ConstructionTextiles Ports Shipping and Hotel was carried out. Exposure to sensitive/stressedsectors such as Real Estate/Telecom are reviewed at halfyearly intervals. Sectors such asNBFC Power Telecom Textiles which are going through a challenging phase are watchedcontinuously and analysis of new developments are shared with the business groups toenable them to take informed credit decisions. Furthermore knowledge sharing sessions areconducted for the benefit of the operating staff at various levels. Additionally monthlydashboard covering top 15 industries is provided to business units detailing thedevelopments in this important Industries / Sectors in these sectors to keep them updatedon the latest information/developments.

As of FY2020 credit rating thresholds were based on the outlook of theindustry/ sector. As the Probability of Default (PD) for industries may not be same yourBank has decided to shift to a framework for arriving credit rating threshold based onboth the PD and Outlook of the respective industry/ sector w.e.f. 1st April2020.

Your Bank uses various internal Credit Risk Assessment Models andscorecards for assessing borrower-wise credit risk. Models for internal credit ratings ofthe borrowers were developed in-house. They are reviewed through cycles of comprehensivevalidation and back testing frameworks including external validation and review. Your Bankalso has in place ‘Dynamic Review of Internal Rating' framework which facilitatesearly identification of stress and triggers the appropriate mitigation mechanisms.

Your Bank has adopted an IT platform for credit appraisal processesthrough a Loan Origination Software/Loan Lifecycle Management system (LOS/LLMS). Modelsdeveloped by your Bank are hosted on these platforms which are interfaced with CIBIL andRBI defaulters' lists.

Your Bank has a framework for Risk Adjusted Return on Capital (RAROC)and the Customer level RAROC calculation has also been digitised. Furthermore behaviouralmodels for monitoring and scoring retail borrower performance have been developed andhosted on Credit Risk Data Mart.

Your Bank conducts Stress Tests every half-year on its Creditportfolio. Stress Scenarios are regularly updated in line with RBI guidelines industrybest practices and changes in macro-economic variables.

Your Bank undertakes specific analytical studies to identify trends inmovement of NPAs quarterly review of loan sanction in order to keep track of quality ofasset portfolio on regular basis.

Your bank has been tracking the credit portfolio in view of the currentPandemic. Bank performed customised stress testing of all portfolios including CorporateRetail - Personal segment SME & Ag portfolios at periodic intervals during 2020-21to identify stress built up. Bank has also identified borrowers well in advance to takeappropriate mitigation measures. These measures facilitated smooth implementation ofvarious support measures for the stressed sectors.

RBI has allowed your Bank to participate in the parallel run processfor Foundation Internal Ratings Based (FIRB) under the Advanced Approaches for CreditRisk. The data under parallel run of FIRB is being submitted to RBI. Models for estimationof Probability of Default (PD) Loss Given Default (LGD) and Exposure at Default (EAD) arehosted in Credit Risk Data mart for computation of IRB capital.

2. Market Risk Mitigation Measures

Your Bank's market risk management consists of identification andmeasurement of risks control measures monitoring and reporting systems. Market risk ismanaged through a well-defined Board approved Investment Policy Trading Policy and MarketRisk Management Policy and Market Risk Limit Policy that caps risk in different tradingdesks or various securities through trading risk limits/triggers for effective andjudicious management of investment funds. These risk measures include position limits gaplimits tenor restrictions sensitivity limits namely PV01 Modified DurationValue-at-Risk (VaR) Limit Stop Loss Trigger Level NOOP Forex Daylight Limit LMAT UMATand Options Greeks are monitored on end-of-day basis.

Value at Risk (VaR) is a tool used for monitoring risk in the Bank'strading portfolio. Enterprise level VaR of your Bank is calculated daily and back testeddaily. The Stressed VAR for market risk is also computed daily. This is supplemented by aBoard approved stress testing policy and framework that simulates various market riskscenarios to measure stress losses and initiate remedial measures.

The market risk capital charge of your Bank is computed using theStandardised Measurement Method (SMM) applying the regulatory factors.

Bank undertakes Risk adjusted performance analysis of its domestic andoverseas portfolios. It also analyses the credit rating migration of non SLR bonds as atool for decision making.

3. Operational Risk Mitigation Measures

Operational Risk is the risk of loss resulting from inadequate orfailed internal processes people and systems or from external events. Key elements ofyour Bank's Operational Risk Management among others include timely Incidentreporting ongoing review of Systems and Controls enhancing risk awareness through Risk& Control SelfAssessment (RCSA) Theme based RCSA monitoring of Key Risk Indicators(KRIs) and aligning Risk Management activities with Business Strategy.

Your Bank has a detailed Business Continuity Plan (BCP) in place forensuring continuity of operations at the Branches and Offices during disruptions. BCPenabled us to ensure minimum business disruption during the natural disasters whichoccurred during the year such as the cyclones in the eastern coast and the disruptioncaused by the COVID-19 pandemic.

For FY2021 your Bank has allocated capital for Operational Risk as perthe RBI requirements under the Basic Indicator Approach (BIA).

Your Bank observes Risk Awareness Day on 1st Septemberannually to improve its risk culture. As part of sensitisation Risk Awareness Day pledgewas administered and an online Quiz contest was conducted for the Bank employees.Furthermore risk awareness is also being embedded through the training system at alllevels. In addition to this training sessions for CFOs of the Circle and DGM (Risk) ofBusiness Units for mitigation of Operational Risk at all Branches/ CPCs/Business Units arebeing organised regularly.

4. Enterprise Risk

Mitigation Measures

Enterprise Risk Management aims to put in place a comprehensiveframework to manage and align risk with strategy at the whole Bank level. It encompassesglobal best practices such as establishing a Risk Appetite Framework Risk CultureAssessment framework Material Risk Assessment amongst others.

As part of your Bank's vision to transform the role of Risk into aStrategic function a Board approved Enterprise Risk Management (ERM) Policy is in place.

The Risk Appetite Framework incorporates limits for major risks withmonitoring parameters. In order to promote a strong risk culture in your Bank a RiskCulture Assessment Framework is being operationalised in a phased manner. As part ofMaterial Risk Assessment Framework a quarterly analysis of risk-based parameters forCredit Risk Market Risk Operational Risk and Liquidity Risk amongst others ispresented to the Enterprise and Group Risk Management Committee (EGRMC)/ Risk ManagementCommittee of the Board (RMCB).

Your Bank conducts a comprehensive Internal Capital Adequacy AssessmentProcess (ICAAP) exercise on a yearly basis with respect to adequacy of Capital undernormal and stressed conditions at Solo and Group level. The document includes anassessment of identified risks at Bank level and at Group level internal controls andmitigation measures and capital assessment.

In the ICAAP besides the Pillar 1 risks such as Credit Risk MarketRisk and Operational Risk Pillar 2 Risks such as Liquidity Risk Interest Rate Risk inBanking Book (IRRBB) Concentration Risk and others are also assessed and capital isprovided where required. New and emerging risks are identified and discussed in the ICAAP.

5. Group Risk Mitigation Measures

Group Risk Management aims to put in place standardised risk managementprocesses in Group entities. Policies relating to Group Risk Management Group Liquidityand Contingency Funding Plan (CFP) maintaining Arm's Length and requirements for IntraGroup Transactions and Exposures are in place. Additionally monitoring of theconsolidated Prudential Exposures and Group Risk components is being done regularly.

All Group entities where SBI has 20% or more stake and managementcontrol including non-banking entities carry out the ICAAP exercise and a Group ICAAPPolicy is in place to ensure uniformity.

6. Basel Implementation

The RBI Guidelines on Basel III Capital Regulations have beenimplemented and your Bank is adequately capitalised as per current requirementsincluding maintaining the required level of Capital Conservation Buffer (CCB). Your Bankis identified as D-SIB by the Regulator and

is accordingly required to keep additional Common Equity Tier 1 (CET1)of 0.60% of RWAs from 1st April 2019.

B. Internal Control

Internal Audit (IA) in Your Bank is an independent activity and hassufficient standing and authority within your Bank. The IA Department headed by a DeputyManaging Director works under the guidance and supervision of the Audit Committee of theBoard. Your Bank's IA function works in close co-ordination with the Risk Management andCompliance Departments to evaluate effectiveness of controls assess compliance withcontrols and adherence to internal processes and procedures. The IA function undertakes acomprehensive risk-based audit of the operating units of your Bank in line withregulatory guidelines relating to Risk Based Supervision.

Keeping pace with rapid digitalisation in your Bank the IA functionhas initiated technological interventions for providing enhanced efficiency andeffectiveness through system driven and analytics-based audits.

Some key initiatives include the following:

• Web-based online Risk Focused Internal Audit (RFIA) forassessing compliance with controls at a granular level

• Analytics-based continuous assessment of compliable controlsthrough remote evaluation of huge data

• System-driven analytics based off-site monitoring oftransactions

• Concurrent Audit of business units to ensure contemporaneousscrutiny of compliances

• Early review of sanctions to assess quality of loans of Rs.1crore and above

• Online self-audit by branches for selfassessment by branches andvetting by controllers

As part of RFIA IA Department conducts various audits viz. CreditAudit Information Systems Audit Cyber Security Audit Home Office Audit (audit offoreign offices) Concurrent Audit FEMA Audit Audit of Outsourced Activities of yourBank Expenditure Audit and Compliance Audit.

Your Bank has created a new wing at IAD to strengthen the overview ofthe audit of its aggregate risk assessment processes.

In addition to this it undertakes Management Audit of businessverticals to assess their strategic effectiveness and Thematic audits as per thedirections of the Audit Committee or the regulators.

Branch Audit

IA Department undertakes critical review of the operations of auditeeunits through RFIA an adjunct to Risk Based Supervision as per RBI directives. Thedomestic branches are broadly segregated into four groups (Group I Special I II and III)based on business profile and advances exposures. Your Bank has initiated a system drivenprocess for identification of branches for audit whereby analytical algorithms aredeployed to identify units displaying significantly different behavioural patterns. Thisenables your Bank to step in with a prioritised audit to identify the causative factors atthese outlier branches and flag the underlying problem areas for early intervention.

During FY2021 the IA Department has completed RFIA of 12359 units ofDomestic Branches & Central Processing Centres (CPCs). Further Evidence BasedCompliance Testing (EBCT) was completed in 3388 branches identified under Trigger BasedAudit (TBA).

Credit Audit

Credit Audit is an integral part of Risk Based Internal Audit systemaimed at identification of inherent business risk (credit risk) evaluation ofeffectiveness of control systems for monitoring the inherent risks (control risk) and mayalso suggest the remedial measures for controlling the credit risk underlying the highvalue loan portfolios.

Bank has put in place Risk Focused Credit Audit (RFCA) an effectivetool for periodic evaluation of quality of the credit portfolio and to bring aboutqualitative improvement in credit administration maintaining the integrity of creditrating process portfolio quality through critically examining individual largecommercial loans with exposures of above Rs. 20 crore annually.

Early Review of Sanction

A review of all eligible sanction proposals with total credit exposureof above Rs.1 crore is carried out under ‘Early Review of Sanctions'(ERS). ERScaptures the critical risks in sanctioned proposals at an early stage and apprises theBusiness Units of such risks for mitigation thereof. ERS facilitates in improving thequality of sourcing pre-sanction and sanction processes. ERS activity has been recentlyCentralised and under this initiative the services of in-house officers/CharteredAccountants are being taken in place of retired officials for Review of Loan Proposals.This is for the purpose of better control and monitoring and also to build a professionalteam for Loan Review under ERS. The entire ERS process is system driven and done throughthe Loan Lifecycle Management Solution.

FEMA Audit

The branches that are authorised to deal (Authorised Dealers) inForeign currency transaction including Trade Finance Centralised Processing Cells-TFCPCare subjected to FEMA audit. All branches in CaG/CCG/TFCPCs and "A" &"B" category branches not linked to TFCPCs are audited once in a year. Around20% of branches linked to TFCPC are also audited along with the linked TFCPC depending onthe risk perception/volume of Forex operations of the linked branches. During FY2021 479such branches/units are subject to FEMA audit.

Information System and Cyber Security Audit

Your Bank's branches are subjected to Information System audits("IS Audits") to assess the IT-related risks as part of RFIA of the branch(es).IS Audit of centralised IT establishments is also carried out by a team of qualifiedofficials which includes IS auditors appointed through lateral recruitment. DuringFY2021 IS Audits of 84 centralised IT establishments were completed. In addition to thisa cybersecurity audit of your Bank is also executed annually as per the CybersecurityPolicy of your Bank. Also ISA takes care of audit of IT-outsourced activities.

Foreign Offices Audit

Foreign Offices are subjected to Home Office Audit in addition toInternal Audit conducted locally at the respective centres under the oversight of InternalAudit Department. Home Office Audit due at 17 Foreign Offices and Management Audit due at1 Representative Office and 1 Subsidiary during FY2021 is deferred to FY2022 due torestrictions imposed on account of COVID-19 pandemic. However these offices weresubjected to internal audit as per approved periodicity.

Concurrent Audit System (CAS)

Concurrent Audit System in your Bank covers advances and other riskexposures as prescribed by the regulatory authority. In order to further strengthen theCAS all Extremely High Risk/Very High Risk/High Risk Branches categorised as per therisk matrix prescribed by RBI are covered under CAS. Additionally Concurrent Auditors areplaced at all Credit Central Processing Cells to identify shortcomings in underwriting ata very early stage of the client relationship. Your Bank has engaged Chartered AccountantFirms in addition to the retired experienced bank officers and regular officers foraudits.

Off-site Transaction Monitoring System (OTMS)

For the purpose of monitoring the transactions offsite scenario-basedalerts are generated and flagged to the business units for corrective actions. Presentlythere are 54 types of scenarios embedded in the system against which the transactions arescrubbed at regular periods wherein inconsistent transactions are flagged by the systemfor affirmation of the related compliances. The scenarios are periodically reviewed andenlarged depending upon the need and certain triggers.

Legal Audit

Legal Audit in your Bank covers scrutiny of the loan and securityrelated documents of loans amounting to Rs. 5 crore and above. The legal audit is acontrol function carried out through a panel of advocates in addition to the scrutiny bythe in-house team of internal auditors to ensure that there are no shortcomings in thedocuments or creation of security in favour of your Bank. During FY2020-21 legal auditwas carried out for 13535 accounts.

Audit of Outsourced Activities (Non-IT)

Your Bank recognises the need of service providers engaged by your Bankto be as compliant with the legal and regulatory requirements as your Bank itself.Therefore the Audit of Outsourced activities is conducted at regular intervals to gain areasonable assurance that adequate systems and procedures are in place to mitigate legalfinancial and reputational risks that may arise on account of the outsourced activities.

Audit of outsourced activities in your Bank covers audits of vendors(Non - IT) engaged in providing ATM services Corporate Business Correspondents (BC)Individual BCs and CSPs Recovery and Resolution agents Cash Management Services ChequeBook Printing Collateral Management Marketing of Loan proposals Registrar and TransferAgents Document Archival Centre and Cash Efficiency Project amongst others.

During FY2020-21 your Bank has completed audit of 30384 CSPs out of60776 CSPs engaged under financial inclusion plan. In respect of other outsourcedactivities audit of 738 vendors as planned was completed.

RFIA of Corporate Centre departments

This Department was created to audit and assess the aggregate risk andmaintain oversight of risk residing at the macro level. The risk assessment coversinherent risks control risks residual risks and gaps in Governance and oversight. Italso assesses the degree of compliance to regulatory and statutory requirements".Thus providing a fair and reasonable assurance to the Senior Management and Board on thedirection and trend of aggregate risk in your Bank.

Management Audit

Management Audit covers identified Corporate Centreestablishments/Circle's Local Head Office/Regional Rural Banks sponsored by your Bank. TheStrategy Processes and Risk Management at auditee units are covered under the audit.

C. Compliance Risk Management

Your Bank gives utmost priority to meeting Regulatory and Statutorycompliances. Towards this we have completely revamped our compliance architecture toensure a sharper focus for tracking areas giving rise to compliance risks and for takingquick remedial steps.

A deep-rooted compliance culture is crucial for the Bank to manage itscompliance risk effectively and this is being strengthened through various forms ofcommunication and interactions across the organization.

To forestall any compliance risk all products process policies arevetted from the Regulatory perspective before they are operationalized. A Compliance RiskManagement Committee comprising of Senior Executives from business verticals and supportfunctions maintains oversight on all compliance related issues. The committee meetsregularly and extends necessary guidance to all the internal stakeholders for ensuringRegulatory compliance.

Compliance testing of RBI's regulations and remediation of gaps ifany is regularly carried out. The testing universe is being expanded to ensure that thecontrol mechanisms are in place to comply with all the regulatory requirements.


Bank has a Board approved KYC Policy in line with the extant RBIMaster Direction. The Policy incorporates Bank's approach to KYC AML and CFT issues. Bankhas taken steps to implement provisions of Prevention of Money-Laundering Act 2002 andthe Prevention of Money-Laundering (Maintenance of Records) Rules 2005 as amended fromtime to time.

The policy contains Banks framework for Customer Acceptance RiskManagement Customer Identification and Monitoring of Transactions. Bank has put in placea robust system containing a combination of manual and system enabled methodology toensure KYC compliance. No account is opened in anonymous or fictitious/benami name orwhere the Branch/Business unit is unable to apply appropriate CDD measures. Bank does notopen accounts for transacting in or settling transactions of virtual currencies. Howeverwhile implementing the policy Bank takes care that it does not result in denial ofbanking services to those who are financially or socially disadvantaged.

To facilitate contactless customer onboarding Video CustomerIdentification Procedure (V- CIP) has been rolled out nationally. Using this process newcustomers can open fully functional accounts without visiting any Branch.

AML CFT Deptt of the Bank takes care of ongoing due diligence throughtransaction monitoring. Bank follows a risk-based approach wherein Customers arecategorized as low medium and high risk based on the assessment and risk perception.Bank takes care of filing of obligatory reports to Financial Intelligence Unit-India(FIU-IND). Suitable reports are also filed on priority in cases of accounts suspected ofhaving terrorist links.

Several initiatives are put in place to bring greater awareness amongstthe staff. Ongoing employee training programmes are conducted by the Bank so that themembers of staff are adequately trained in AML/CFT policy. AML-CFT Day is being observedon 2nd November every year wherein pledge is taken on that day at allbranches/processing centers and Administrative Offices. Similarly 1st Augustis observed as KYC Compliance and Fraud Prevention Day.

E. Insurance

Your Bank is procuring insurance policies covering your Bank's assetsand other risks. Insurance coverage includes cash and valuables Properties of the BankFraudulent transactions under Debit Card/Electronic banking and Cyber Risk amongstothers.

F. Premises

IGBC Green Building Awards :

1. Our prestigious State Bank Bhavan building at Nariman Point hasreceived the Excellence award in IGBC Performance Challenge 2020.

2. Further the IGBC rating of State Bank Bhavan has been upgraded toGold from the existing Silver rating obtained in 2017. Remarkable improvements in areassuch as water efficiency Energy efficient lights Energy efficient Sewage treatmentplant Cooling tower of air conditioning plant and Organic farming etc. have helped us inachieving this rating. We have also obtained "Platinum" Certification from IGBCfor our "Dunedin Bungalow". At present SBI has a total of eight IGBC ratedGreen Buildings.

4. Official Language

Your Bank has an extensive geographical footprint across the world andcaters to thousands of customers through its 22219 branches and 62617 ATMs officeslocated abroad and various banking channels. Close to 206000 staff members of the YourBank (excluding subordinate staff) are committed for propagating the use of the officiallanguage in the Banking industry through various channels set up by your Bank.

Following are the innovative initiatives for spread and usage ofOfficial Language by State Bank of India:

1. Internet banking website ‘Online SBI' is now available in 12languages - Hindi Tamil Marathi Gujarati Kannada Oriya Bangla Punjabi TeluguMalayalam Konkani and English.

2. SBI Quick Application has been made available to customers in HindiMarathi and English which includes Bank's holiday calendar ATM card services mobile topup/ recharge. Furthermore facilities such as Pradhan Mantri Social Security schemes ATMbranch locator among other schemes have also been provided.

3. Internet banking site Online SBI has been made available in 14Indian Languages.

4. BHIM Pay SBI is available in Hindi Tamil and English.

5. SBI's YONO LITE App is available in 12 Indian languages. FurtherYONO Krishi App has been made available in 10 Indian languages including Hindi TamilTelugu and Malayalam.

6. SBI Quick App has been made available in 14 Indian languages.

7. Our call centres are currently providing solutions in 13 languageswith more than 80% of the queries being made in Indian languages.

8. Bank's revamped website ‘BANK. SBI' is available in Hindi andEnglish.

9. The ATM screen as required by the Department of Financial Servicesand its slip has the option of Hindi and local language. Passbook printing net bankingStatement of account are also being provided in Hindi.

All India Webinars Conducted:

1. The Official Language Review Meeting of all the 17 Circles was heldon 18th June 2020 at the Corporate Centre Mumbai.

2. Webinar on the subject "Customer Satisfaction" was held on29th June 2020 at Bengaluru.

3. Training programme for Probationary Officers was held on 19thJune 2020 at Kolkata.

4. All India Group Discussion on Implementation of SustainableDevelopment Goals for Sustainable Life was held on 19th September 2020 incollaboration with the Department of Sustainability.

5. In collaboration with Department of Sustainability and FICCI awebinar on the subject impact of COVID-19 on achieving the Sustainable Development Goalswas organised on 25th September 2020. Deputy Managing Director (HR) andCorporate Development Officer chaired the webinar which was attended by a large number ofstate Bank members including FICCI officials.

Various Programmes for the Dissemination of the Official Language:

1. A webinar on the subject "Official Language Implementation forOfficial Language Officers: Future challenges and possibilities" was held on 29thJune 2020 at the Corporate Centre Mumbai.

2. A discourse programme was held with Dr Sumeet Jairath SecretaryDepartment of Official Language Ministry of Home Affairs Government of India New Delhion 17th September 2020. The Seminar was attended by Rajbhasha Officers andCircle Development Officers all over India and was chaired by DMD (HR) & CDO.

3. A seminar on the subject "Writings of Premchand and the IndianSociety" was held on the occasion of Premchand Jayanti on 31st July 2020.Dr Karunashankar Upadhyay Head of the Department of Hindi

University of Mumbai presided and Deputy Managing Director (HR) andCorporate Development Officer chaired the seminar.

4. Webinar for all the Officers translators and staff members of theDepartment of Official Language was organised under the Chairmanship of General Manager(Official Language & Corporate Services) on the latest concepts related to translationwas held on 22nd July 2020 with the objective of familiarising the concepts ofsimple translation. Dr Srinarayan Singh former Director Central Translation BureauGovernment of India was invited to acquaint the members with the latest concepts oftranslation.

5. Hindi Fortnight was successfully organised in a fully online modethis year. Apart from the various regular competitions your Bank successfully conductedall India Online Hindi Quiz wherein about 10000 staff members participated.

Other initiatives:

1. Special issues of Prayas were published - April-June was on EthicsJuly-September issue was on CSR October-December issue was Positivity and January-Marchissue focused on International Women's Day.

2. Trilingual Banking Terminology (English Kannada & Hindi) waspublished by your Bank's Bengaluru Circle which was inaugurated by the ParliamentaryCommittee on Official Language 7th October 2020.

3. Official Language Fortnight was held in all Offices/Branches ofState Bank of India and the fortnight was celebrated with gaiety and enthusiasm.

4. In order to increase the readership and for reaching out to more andmore people WEBPRAYAS was launched which was developed In-house on SharePoint. Listenerscan listen/ read subject wise articles poems and stories as per their choice andinterest.

5. Mobile Edition of WEBPRAYAS was launched by DMD (HR) & CDO on 18thMarch 2021. Audio version of Prayas magazine can be heard on one's Mobile anytime andanywhere simply by scanning QR Code on mobile phone.

Awards and Recognition:

1. State Bank of India's home magazine ‘Prayas' has been conferredwith Kirti Puraskar by Department of Official Language Ministry of Home AffairsGovernment of India for the fourth time. The award would be presented by the HonorablePresident of India.

2. State Bank of India Local Head Office Patna and AdministrativeOffice Kottayam were conferred with regional awards for implementation of officiallanguage by Government of India Department of Official Language Ministry of Home Affairsfor the year 2019-20.

3. Our Bhubaneswar Jabalpur Surat and Indore Town Official languageImplementation Committees bagged Regional Prizes for best implementation of Rajbhasha.

4. A translation competition was organised by the Department ofLanguage Ministry of Home Affairs GOI to prepare a global data base for translation inthe Banking sector by the name of Kanthasth. The competition had the best performance ofState Bank of India among all Central government ministries and offices (including IndianRailways and Security Forces) in all public sector establishments all public sector Banksand insurance companies. 9 officers were awarded certificates by Secretary Department ofOfficial Language Ministry of Flome Affairs and citations were given to all the winnersby Deputy Managing Director (FIR) & Corporate Development Officer.

5. Marketing and Communications

The Marketing and Communications (M&C) Department is responsiblefor your Bank's initiatives towards branding product marketing and corporatecommunications. With the objective of optimizing its efforts in promoting the products andservices by adopting contemporary marketing approach and to give impetus to the digitalinitiatives and connect with the youth the M&C Department endeavors to develop andimplement integrated marketing strategies to address business challenges of differentdivisions of your Bank including Indian and overseas operations. This department comprisesof domain skilled professionals and specialists drawn from various relevant fields -media marketing communications digital marketing advertising and public relations.

During the year of Pandemic even though the branches and ATM's werefunctioning uninterruptedly the focus of your Bank's M&C team was to promote SBI'sdigital initiatives and the efforts of employees during the times of COVID-19. For thisyour Bank undertook initiatives to increase the download of SBI's digital banking channelslike YONO SBI BHIM Pay INB etc. and get customers to use them more and more. We alsoundertook digital initiatives like #GharseBanking #Khushiyonkaswagat etc. along withseveral other campaigns for customer awareness about our digital products and serviceswhich could be availed sitting at home during the time of Lock Down.

The Department has further strengthened its process on integratingmarketing efforts across all Business Units and has set up a suitable process forinitiating any marketing campaign. The M&C team launched major marketing campaigns forproducts such as Home Loans Personal Loans Current Account NRI Services and DigitalProducts. The Department also initiated an integrated approach to drive consideration forthe range of retail loan products. Different media channels such as print social mediaATMs etc. were used for all these campaigns. The Department also promoted several of itssustainability initiatives and CSR through various forms of media.

Going forward along with the other marketing initiatives your Bankplans to further promote its various digital initiatives along with its flagship productYONO. The thrust of the department is to constantly redefine and reinvent all itsmarketing initiatives to stay relevant and act as a change catalyst for State Bank ofIndia to position itself as one of the most vibrant and trusted brands.

6. Vigilance Mechanism

1. There are three aspects to the vigilance function- PreventivePunitive and Participative. Based on past experiences/incidences system/processimprovements are being under taken continuously by leveraging technology and guidelines ofthe Bank are being streamlined as a preventive vigilance measure.

2. During this year Vigilance Awareness Week was observed from 27thOctober 2020 to 2nd November 2020 with the theme "Satark Bharat SamriddhBharat (Vigilant India Prosperous India). As a part of observance of Vigilance AwarenessWeek "Integrity Pledge" has been administered to all staff members. Allchannels of Bank such as SBI Times ATMs CDMs Internet Banking Facebook TwitterInstagram Linkedin are used to create awareness among employees and public on the themeof Vigilance Awareness Week (VAW). During the VAW we held a conference of CVC with theTop Management of the Bank. The Commission was presented with the elaborate PreventiveVigilance measures taken by the Bank. Commission appreciated various measures taken by theBank. During this period while strictly adhering to extant Covid-19 guidelines actionsrelating to internal house keeping were taken up in campaign mode. A "VigilanceBulletin" was published incorporating case studies and other important guidelines toprovide awareness amongst employees.

3. During the financial year under review the following measures wereinitiated in order to improve the effectiveness of vigilance administration and timelydisposal of disciplinary cases.

i. DFS has appointed 6 Additional Chief Vigilance Officers (ACVOs) ondeputation basis in the Bank to strengthen Vigilance Administration and to support CVO.Out of 6 ACVOs 4 are posted at 4 Zones (North South East and West) and 2 at CorporateCentre to handle cases of Corporate banking (CAG CCG IBG & SARG) and Subsidiariesand RRBs. The roles and responsibilities of these ACVO are finalised and requiredinfrastructure is created for them. With appointment of ACVOs for Subsidiaries & RRBsthe vigilance administration of RRBs & Subsidiaries is brought under directsupervision of CVO.

ii. In order to put in place a mechanism to monitor the progress ofstaff accountability examination in respect of large value frauds of Rs. 50 crores andabove a Committee namely "ABBFF Review Committee" under chairmanship of MD (CB& GM) has been constituted. This Committee will review the progress of all cases beingreferred to ABBFF at bi-monthly intervals. The reviewed status report is being shared withall stakeholders to initiate prompt action as desired at their end so that the timelinesprescribed by ABBFF can be met.

iii. To take holistic view in the disciplinary cases and to ensureuniform decisions and speedy disposal centralized DAs have been created and 5 DAs (4Hubs 1 at CCG) have been posted / designated.

4. Vigilance Department has conducted 193 preventive vigilanceprogrammes and trained 3735 officers. Suo-motu investigations have been conducted in 768branches to ensure preventive measures are made effective.

5. During the financial year 2020-2021 a total of 1716 cases(including 908 new cases) were taken up for examination out of which 1045 cases havesince been closed.

7. Asset and Liability Management

Efficient Management of Assets and Liabilities (ALM) is vital forsustainable and qualitative growth of Banks. ALM aims to strengthen Balance Sheet bypro-actively reviewing the market dynamics capturing the signals emanating therefrom andassessing the regulatory requirements to ensure value creation.

As part of sound Risk Management practices your Bank has beenconstantly reviewing its Internal Policies on ‘Deposits' ‘Asset and LiabilityManagement' ‘Stress Test on Liquidity and Interest Rate Risks' ‘ContingencyFunding Plan' and adapting changes in the market conditions. Bank has been carrying outReverse Stress Test to take care of the eventual risk that may crop up as a worst-casescenario.

Studies are conducted at regular intervals to assess the behavioralpattern of customers (embedded options available to customers) in order to give propertreatment to the non-contractual items of assets and liabilities while assessing liquidityposition. Behavioral analysis is being carried out at half-yearly intervals to ensureaccurate positioning of outflows/inflows in liquidity and interest rate sensitivitystatements that arise due to off-balance sheet exposures impact of probable loan lossesetc. The prevailing assumptions relating to noncontractual items of assets and liabilitiesare periodically reviewed and updated based on the outcomes of the latest studies.

The stock of High-Quality Liquid Assets (HQLA) and cash outflows areeffectively monitored on a daily basis under dynamic market environment to ensuremaintenance of LCR as prescribed by the Regulator as well as Bank's ALM Policy benchmarks.

Your Bank has proactively implemented the NSFR guidelines of RBImeasuring the long-term resilience of the Bank in terms of liquidity which is coming intoforce effective from 1st October 2021.

Your Bank identifies the inherent risks associated with the changinginterest rates on its on-balance sheet and off- balance sheet exposures from both ashort-term and long-term perspective. For this purpose impact on Earnings at Risk (EaR)and Market Value of Equity (MVE) is assessed with pre-defined tolerance limits whichenables the Management to initiate appropriate preventive steps in a likely scenario oferosion in NII / Net Worth.

In order to encourage branches to garner stable funds and assess theirprofitability based on cost of funds a matched maturity-based Funds Transfer Pricing wasimplemented by your Bank.

The Asset Liability Management Committee (ALCO) of your Bank monitorsand manages Liquidity and Interest Rate Risks by constantly modulating the asset-liabilitymix in the Balance Sheet. ALCO inter alia reviews the Interest Rate scenarios patternof growth of liability products credit growth competitive advantages liquiditymanagement adherence to the regulatory prescriptions and pricing of liabilities andassets from time to time.

Your Bank has been in the forefront of monetary policy transmissionhaving achieved adequate level of transmission through its lending rates and has takenadditional steps to expedite the transmission process by reducing its MCLR reset frequencyfrom 1 year to 6 months for eligible floating rate advances. The Bank had also transmittedthe Repo rate cuts during the year in entirety through its EBLR.

With automation of Regulatory Reports/ Returns pertaining to ALM yourBank is better positioned in monitoring and compliance in respect of Liquidity andInterest Rate Risk Management.

8. Ethics and Business Conduct

Your Bank established the Ethics & Business Conduct Vertical in theyear 2017. The moot idea behind the decision was to further strengthen and integrateethics in the operational fabric of the Bank in a more overt and structured manner.Aflagship initiative in the entire Indian Banking and Public Sector landscape it was yetanother reiteration of your Bank's strong commitment to uphold the highest standardsof integrity and conduct. What started from a scratch has over the period of time shapedinto a robust comprehensive and an effective organisational ethics framework. Ever sinceinception the Ethics and Business Conduct vertical of your Bank has been carrying out ahost of initiatives and programs. A quick glance of the major ethical initiatives so farthe formulation of the Vision Mission & Values Statements of your Bank in sync withthe employee expectations and the changing times articulated the basic guidingprinciples both at an individual and institutional level. The core Values of the Bankwere the foundations on which the Bank's Code of Ethics was ideated and designed. Todaypivoted around its Values and the Code the entire ethical program of your Bank isoptimally primed to permeate and percolate exalted behavioural norms across all levels.

While the ethics program is mostly tech driven to further leverage thedigital major initiatives like development and operationalisation of Ethics WebsiteBusiness Conduct and Discipline Management Online Processing Portal & Dashboard andGARIMA an online portal for lodging sexual harassment related complaints were taken andconcluded in the recent times. Various policies that can have an influence on the employeeethical behaviour like Gift & Entertainment Social Media etc have also beenconstantly reviewed updated and circulated in the Bank.

Your Bank's commitment towards nurturing an inclusive secure anda high trust workplace for its women employees is driven by the Garima (POSH) framework.Towards this end many activities that cover the entire process cycle- educationescalation and empowerment- on matters relating to gender-sensitivity and sexualharassment have been undertaken. In the area of consequence management workflows havebeen reviewed streamlined and where required redesigned to ensure a fairer faster and amore efficient Discipline Management structure. This has ensured that the ethicaltransgressions are adequately dealt with promptly and in a transparent manner which isone of the key requirements of fostering an ethical culture in an organisation.

The FY 2020-21 for the major part was marked by disruptions caused bythe Pandemic. However the operational resilience built in the preceding years byconstant integration of the digital platforms in all work spheres ensured that the entiregamut of activities of the Ethics & Business Conduct vertical continued unaffected anduninterrupted just like the pre-covid times. On the contrary the scope and span of itfurther expanded. In addition to the one existing three new daily email broadcast serieswere started. These were based upon developing leadership traits employee well-being andpractising ethics beyond the workplace. Similarly in addition to the one existing a newweekly blog series was ideated. Viewing the major corporate failures from the moral lensit was a brief commentary as to what went wrong from an ethical perspective. The abridgedversion of the Bank's Code The Code of Ethics in Brief was prepared for circulationamongst the new entrants during onboarding. A comprehensive online certification module onthe Code the successful completion of which is digitally certified was also designed andhosted on the intranet.

In the area of Discipline Management your Bank has completed theoperationalization of centralized Disciplinary Authority (DA) structure for Officers up toSMGS-V. The framework is serving well its intended purpose of bringing in uniformity ofapproach in handling the disciplinary matters across the spectrum. Last but not the leasteven amidst the disruptions your Bank reached out to the newly selected ProbationaryOfficers newly promoted JMGS-I and the officials working in the consequence managementsetup through a series of webinars on Ethics GARIMA-POSH and Discipline Management touchbasing close to 3000 officials. In addition customised workshops on ethics for thevarious internal verticals were also conducted.

The journey to perfection is lengthy and a patient trudge. Your Bankthat has already come a long way looks forward to continuing with the same zeal andenthusiasm on its goal to attain ethical excellence a perquisite to enhanced brand equityand continued success.

9. Corporate Social Responsibility

Social Responsibility is deeply ingrained in the culture of your Bank.Consequently it has been undertaking various social welfare initiatives for creatinglasting social impact. The objective of CSR policy in the bank is to:

• Participate in activities that benefit community developmentsocial responsibility and environmental sustainability so as to reach out to socially andeconomically disadvantaged sections of society.

• Accord primacy to support national priorities such as SwachhBharat Abhiyan Jal Shakti Abhiyan Beti Bachao Beti Padhao and River Rejuvenationamongst others.

The focus areas of your Bank's CSR activities for FY2021 includehealthcare education livelihood sports welfare of armed forces veterans skilldevelopment environment sustainability protection of National Heritage empowerment ofwomen youth and senior citizens.

CSR Spend during FY2021

In terms of the Reserve Bank of India guidelines your Bank can spendup to 1% of its previous year's profits towards its CSR efforts. The net profit of yourBank for FY2020 was Rs.14488 crore. Accordingly the budget for CSR for FY2021 wasRs.144.88 crore. An amount of Rs. 71.18 crore has been allocated to SBI Foundation forcarrying out CSR activities on project mode.

(Rs. in crore)
CSR Expenditure
National Donations 26.00
Donations & other direct activities including RSETIs (for capex expenditure) 47.70
Total 73.70
SBI Foundation 71.18
Total CSR spend 144.88

SBI's Fight against COVID-19:

Your Bank has spent a total of Rs. 43 crore which constitutes around0.30 % of net profit towards the Banks' support in fight against the COVID-19 pandemic.Some of the initiatives include:

• Your Bank has committed Rs. 30 crore to implement variousCOVID-19 relief programmes through the following key intervention areas - providing foodrelief with support from on-ground implementation partners PAN India; distribution of PpEkits PAN India; strengthening healthcare infrastructure by procuring ventilators and otherhealth equipment for government hospitals across India; capacity building of healthcareworkers with ECHO India; supporting initiatives for students mental well-being during theCOVID-19 pandemic; and supporting two R&D projects to fight the COVID-19 outbreak intie-up with the Indian Institute of Science (IISc).

• Your Bank has donated Rs.11 crore to PMCARES fund as supporttowards Covid 19 Vaccination drive.

• Rs.1 crore has been donated to the Apollo Hospitals Educationaland Research Foundation to set up medical rooms at six centres in collaboration with OYOand Apollo Hospital under the aegis of Apollo Hospitals Educational and ResearchFoundation.

• Your Bank has donated Rs.1 crore to Mumbai Police Foundationfor the welfare of the families of Covid warriors who died while discharging their duty.

Supporting Girl Education and their Welfare:

• As a part of the ‘Beti Bachao Beti Padhao' campaign of theGovernment Your Bank has committed to provide an education grant of Rs.1000 per month to8333 girl children of war-veterans/ex- servicemen/war-widows for a period of one year.Total amounting to Rs.10 crore.

• Your Bank has supported in the education and welfare of 10 girlchildren through Shanti Sahyog New Delhi for a period of one year. Care and nurture of 16girl children has been undertaken through Universal Smile Trust Kolkata.

Supporting Sports and Athletes:

• As a socially responsible organisation your Bank has extendedwhole-hearted assistance in funding for the Target Olympic Podium Scheme of Ministry ofYouth Affairs and Sports. An amount of Rs. 5 crores have been donated to the NationalSports Development Fund for the cause of athletes participating in Olympic games.

Supporting Health Care:

To address the health challenges of the society your Bank demonstratedits commitment to the society it serves. Your bank provides basic infrastructure tovarious Hospitals NGOs Trusts working for society under Health Sector improve the

conditions of the common man. To deliver quality healthcare to thosebelonging to underprivileged and economically weaker sections of the society your Bankhas supported to the cause by taking some of the initiatives in Health Sector.

• Support for Medical treatment of Cancer patients at GujaratCancer Society

• Donation of Medical and Electrical equipment to cataractpatients at Ramakrishna Math Antpur

• Donation of high-end Medical equipment FISH (Fluorescentmicroscope with fish software hybridising chamber and Fish probes and implementation kit)used to detect molecular and genetic status in cancer patients

• Procurement and Installation of Dialysis Machine and Dialyzerreprocess machine for kalapurnam General Hospital at khichan village of Phalodi TehsilDist Jodhpur

• Support to Eye Operation of 50 Poor and needy students at ShriLabhmuni Jansewa Trust Mandsaur

• Your Bank has adopted 25 Children suffering from Acute MyeloidLeukaemia (AML) through Cancer Patients Aid Association (CPAA)

• Your Bank has donated Mobile Cancer Screening Unit to NandamuriBasavataraka Ramarao Memorial Cancer Hospital Hyderabad

• Your Bank has also supported to various Trust Hospitals bydonating ambulances setting up of Operation Theatre and donating medical equipmentamongst others

Supporting Education:

Your Bank always strives to support education of weaker social group inremote unreachable and underdeveloped areas. The areas covered are given below:

• Financial help for Education programme for 100 Children withdisability in community schools at Vijapura District Karnataka for a period of 18 monthsfrom October 2020 to March 2022

• Purchase and installation of Solar Power Plant at Badhit SeniorSecondary School Ajmer. School provides vocational training to 260 deaf students

• Donation to Kat-Katha NGO for women empowerment and childreneducation of trafficked women at GB Roard Delhi

• Your bank has helped in setting up of computer labs and robologylabs for the needy and destitute students

• Support rendered to various NGOs and trusts working in the fieldof education for children by donating school buses study equipment and providingeducation facilities

Skill Development:

Rural Self Employment Training Institutes (RSETIs): India is one of theyoungest nations in the world with more than 50% of its population below 25 years of age.Employability of the growing young demography is one of the important factors in theeconomic development of the country. The skill development initiatives support the supplyof trained manpower.

Your Bank has set up Rural Self Employment Training Institutes (RSETIs)across the country as an institution to help and mitigate the unemployment andunderemployment problem among youth in the country. During the FY2021 your Bank hadallocated an amount of Rs. 22.50 crore for capex expenditure to 17 RSETI buildings.

Swachh Bharat Environment Protection and Sanitation:

Your Bank is committed to the Government's mission of "SwachhBharat" and has undertaken several initiatives across the country which includeproviding sanitary napkin vending machines dumper bins and machines for plasticrecycles amongst others. Your Bank is also committed to environment protection andcontributes positively to reduce the carbon footprint. The major initiatives implementedby your Bank are as follows:

• Donation of Lab Equipment and construction/renovation of fivedisabled friendly toilets at Leprosy Mission Trust

• Tree Plantation at Ahmedabad Miyawaki System organised byGreen Leaf Trust and supported by SBI

• Donation to Prabhav Foundation Green Park New Delhi towardsplantation of tree plantation on the banks of Yamuna river near Kalindi Kunj and AbulFazal Pond New Delhi

Women Empowerment

Your Bank is committed towards strengthening women empowerment and carefor senior citizen. The major initiatives taken in this space are as follows:

• Setting up of a stitching training Center for women at Shri SewaBharti Siksha Samiti Indore

• Setting up of a Computer Library with 10 workstations andnecessary software at The Hindu Women's Welfare Society (Shradhaanand Mahilashram)

• Your bank has supported Khirpai Ramakrishna Sarada Sevashramatowards construction of dormitory for poor and underprivileged women

Welfare of Tribal People and Persons with Disabilities

Your bank has supported welfare of Persons with Disabilities bydonating prosthetics legs wheelchairs braille kits and other equipment for the use bythe persons with disabilities.

Special activities have been undertaken for the upliftment of tribalpeople by providing avenues for self-employment and providing facilities for theirwell-being.

Animal Welfare

• Your Bank has adopted tigers and other endangered animals fortheir welfare for a period of one year through various zoological parks and animalshelters

• Support granted for installation of Bird Perching Stands atKolleru Wildlife Sanctuary for the welfare of rare species of birds

Support during Natural Calamity

• Your Bank has contributed towards environment-friendly measuresby understaking the plantation of 15500 saplings across the "Amphan" affectedcoastal area of South 24 Parganas District West Bengal

• Support rendered to flood hit areas in Hyderabad by providingessential items to the people who were affected by the floods.

Employee Volunteer - SBI Children's Welfare Fund:

With the concept of "Charity begins at home" your Bank hadestablished a Trust in 1983 SBI Children's Welfare Fund an initiative undertaken by thestaff members. The Trust was created by the voluntary contribution from the employees ofyour Bank towards the betterment of the underprivileged children and orphans. The interestearned on the corpus of the fund is utilised to extend grants to selected institutionsthat are engaged in the welfare of underprivileged children viz. orphans differentlyabled destitute and deprived. During FY2021 total contribution of '0.54 crore has beenreceived from the staff of the Bank and your Bank has donated an amount of '0.64 crore to8 institutions/organisations across the country which are working for the welfare of thechildren who are from the marginalised and downtrodden section of the society includingPWDs.

V. Subsidiaries


Name of the subsidiary company Ownership (SBI Interest) % of ownership Net Profit (losses) Mar 2021
SBI Capital Markets Ltd. 58.03 100% 273.25

SBICAPs is India's leading investment banker offering a bouquet ofinvestment banking and corporate advisory services to diversified clients across threeproduct groups - Project Advisory and Structured Finance Equity Capital Markets and DebtCapital Markets. These services include Project Advisory Loan Syndication StructuredDebt Placement Mergers and Acquisitions Private Equity Restructuring Advisory StressedAssets Resolution IPO FPO Rights Issues Debt and Hybrid Capital raising. SBICAP isalso involved in fund raising through new product such as Real Estate Investment Trusts(REIT) and Infrastructure Investment Trusts (InvIT) in line with Government's AssetMonetisation Plan.

The ranking of SBICAP across the product groups are given below:

• Ranked No. 1 - India Borrower Loans in Local Currency (INR) -Mandated Lead Arranger - market share of 74.4% as per Bloomberg league tables.

• Ranked No. 1 ranking in Emerging Markets Merger and Acquisitiondeals in India as per Refinitiv.

• Ranks 3rd in FY21 with market share of 12.13% in Debtcapital market space as per the Bloomberg League Table.

• Ranks No. 3 in the league tables with a market share of 69.5% byIssue Amount in Equity Capital Market space as per Prime Database.

On a standalone basis SBICAPs posted a PBT of Rs. 383.25 crore duringFY 21 as against Rs. 275.56 crore during the FY20 and a PAT of Rs. 273.25 crore for FY 21as against Rs. 215.43 crore for FY 20. On a consolidated basis it has posted a profit ofRs. 527.10 crore as against Rs. 334.49 crore in the previous year.


SSL a wholly owned subsidiary of SBI Capital Markets Limited besidesoffering equity broking services to retail and institutional clients both in cash as wellas in Futures and Options segments is also engaged in Retail Distribution of otherfinancial products such as Mutual Funds Tax Free Bonds Home Loan Auto Loan amongstothers.

SSL has over 101 branches and offers Demat e-broking e-IPO and e-MFservices to both retail and institutional clients. SSL currently has around 24 lakhclients. The Company posted a net profit of Rs. 207.12 crore during FY 21 as against Rs.84.94 crore in FY 20.


SBICAP Ventures Ltd (SVL) a wholly owned subsidiary of SBI CapitalMarkets Limited presently manages two funds: Neev Fund & SWAMIH Investment Fund I.

Neev Fund is SEBI registered Category I AIF with a mandate to invest ininfrastructure development of eight low-income states. SVL is a General Partner in NeevFund with Rs. 63.64 crores investment which is 12.61% of fund size. The fund has fullyinvested its investible corpus of Rs. 447.99 crores across 10 portfolio companies. SVLplans to announce launch of SVL-SME Fund (Neev II) in Q-1 FY 2022.

SWAMIH Investment Fund I is SEBI registered Category-II AIF whichachieved its first close on December 6 2019 at Rs.10037.50 crores with Government ofIndia and public sector banks and institutions as investors in the Fund. It has mandate toprovide last mile funding to stalled housing projects. The Fund has disbursed Rs.1268.40crores across 38 projects.

The company is also selected as Asset Manager for two Fund of Funds-Self Reliant India Fund and UK India Development Cooperation Fund which are in theprocess of operationalization.

The Company posted a net profit of Rs. 37.04 crore during FY 21 asagainst Rs.11.01 crore in FY 20.



SSGL is a wholly owned subsidiary of SBI Capital Markets Limited. Itcommenced business in December 2012. SSGL is in the process of winding up of operations.



STCL is a wholly owned subsidiary of SBI Capital Markets Limited. STCLcommenced

Security Trustee business from 01st August 2008.

STCL posted Net Profit of Rs.12.98 Crores during the period ended FY 21as against Rs. 20.52 crores for the period ended FY 20.

STCL plays an active role in providing Security Trustee Services toHigh Value lending to Infra Projects Large and Medium Corporates and is the No.1 SecurityTrustee in the industry. They also have significant presence as Debenture Trustee in theDebenture/Bond market.

Further STCL have added the role of Facility Agent DocumentManagement Systems (DMS) and Securitization in their line of services.

SBI Cards & Payments Services Limited (SBICARD)

Name of the subsidiary company Ownership (SBI Interest) % of ownership PAT (Rs. Cr) FY21
SBI Cards and Payment Services Limited 652.63 69.39% 985

SBI Cards and Payment Services Limited (SBICARD) is a subsidiary ofState Bank of India wherein State Bank of India holds 69.39% stake. SBI Cards and PaymentServices Limited (formerly known as SBI Cards and Payment Services Private Limited) is anon-banking financial company that offer extensive credit card portfolio to individualcardholders and corporate clients which includes lifestyle rewards travel & fuel andbanking partnerships cards along with corporate cards covering all major cardholders'segments in terms of income profile and lifestyle. It has diversified customer acquisitionnetwork that enables to engage prospective customers across multiple channels. SBI Card isa technology driven company.

During FY21 the company operated in an adverse macro-economicenvironment affected by the COVID pandemic. Post easing of COVID lock-down there has beena strong business recovery in terms of higher new accounts spends and receivables.However the credit risk situation continues to be impacted by macro-economic variablessurrounding us leading to higher credit costs. The company undertook several initiativesto improve collections and recoveries. To cover itself for future credit risks thecompany has

provided higher provisions and the overall management overlay stands atRs. 297 Cr as on Mar'21. This is over and above the base provisions of Rs.1358 Cr.

The company achieved Earnings before Credit Costs (EBCC) of Rs. 4024Cr at 10% YoY and Profit after Tax (PAT) of Rs. 985 Crore in FY21 as compared to Rs.1245Crore in FY20.

Financial Highlights (FY21)

• PAT 985 Cr

• Cost to income 53.6% (FY20 56.6%)

• Diversified borrowings mix adequate banking limits available.

• Healthy CAR @ 24.8% T-1 @ 20.9%

• GNPA @ 4.99% NNPA @ 1.15%

Other Business Highlights FY21

• Card base of 1.18 crore.

• 12% growth in cards; 4% growth in receivables.

• Consistently ranked #2 in terms of both cards and spends.

• Market Share*: cards 19.0% (FY20 18.3%) spends 19.5% (FY2017.9%) (*as per RBI report available till Feb'21)

New Launches and Partnerships

• Launch of IRCTC RupayCard

• Launch of SBI Amex Card

• Partnership with PayTM : Paytm SBI Card Paytm SBI Card SELECT

• Partnered with key players including Google Pay and Jio Pay tofurther the digital partnerships and portfolio.

• Launch of BPCL Premium Card : BPCL SBI Card OCTANE

• Launch of a new cobranded Card: Delhi Metro SBI Card

• Launch of Aurum Card to target super affluent an invitationonly card enriched by exclusive privileges along with a personalisedkit and Metallic Card.

Digital campaigns

• Contactless Ad Campaign (Sep-Oct'20)

• Festive campaign ‘Apnepanwaalidiwali' during Q3'FY21

• Contactless Ad Campaign and SBI Card mobile app campaign inQ4'FY21

Significant Awards received during


• Iconic Brand of India 2020 at the Economic Times Iconic BrandDigital Conclave held on 30th June 2020.

• Bronze Award for Best-in-Class Contact Centre (Over 100 seats)in Customer Contact Week Asia Excellence Awards 2020 in Oct 2020

• SBI Card Pay won InnTech2020 Award. The award was won by SBICard and Mahindra Comviva jointly in Nov 2020

• SBI Card has received two awards under the category of DisasterRecovery and Storage Technology

• SBI Card won in Best Advance in Mobile Learning Technology forthe year 2020

• SBI Card has been awarded for the Best-in-Class Enterprise-wideDigital Transformation by The Economic Times in March 2021.


(Rs. crore)

Name of the subsidiary company Ownership (SBI Interest) % of ownership Net Profit (losses) 31st March 2021
SBI DFHI Ltd. 131.52 69.04% '251.67

SBI DFHI Limited is standalone Primary Dealers (PD) with a pan Indiapresence. As a Primary Dealer (PD) it is mandated to support the book building process inprimary auctions and provide depth and liquidity to secondary markets in G-Sec. BesidesGovernment securities it also deals in money market instruments non-G-Sec debtinstruments amongst others. As a PD its business activities are regulated by RBI.

State Bank of India group holds 72.17% share in the Company whichposted a Net Profit of Rs. 251.67 crore as on 31st March 2021 as againstRs.176.34 crore as on 31st March 2020. Total balance sheet size wasRs.10013.89 crore as on 31st March 2021 as against Rs.11383.36 crore as on 31stMarch 2020.

customers. The company is focused on providing simple easy tounderstand and affordable products through a robust multi-distribution model encompassingBancassurance Agency Broking and Retail Direct Channels. SBI General's distributionfamily includes over 25000 IRDAI certified employees including the State Bank Groupemployees and over 13000 Agents to make insurance easily available even in the remoteareas of the country. The Company has also entered into strategic partnerships withIndia's leading automobile manufactures Web aggregators and brokers with an endeavor tocreate long-term sustainable value.

SBI General has achieved Gross written premium of Rs. 8312 Cr in FY21as against Rs. 6840 Cr in FY 20. The Company registered growth rate of 22% with a marketshare of 4.16% in FY 21. The Company ranked at 7th amongst private insurers and12th in the overall industry. The Company has generated a net profit of Rs. 544Cr with a YOY growth of 32% as on FY 21.

SBI general insurance company ltd is assigned AAA/Stable rating byCRISIL as highest corporate credit rating.

SBI general has been awarded with the prestigious ‘GeneralInsurance Provider of the Year' at the 25th edition of Business Today - MoneyToday Financial Services Awards 2021.


(Rs. crore)

Name of the Ownership % of Net Profit (losses)
subsidiary company (SBI Interest) ownership 31st March 2021
SBI General Insurance Company Ltd. 151 70% 544

SBI General Insurance Company Limited commenced its operations as ajoint venture between State Bank of India (SBI) and Insurance Australia Group (IAG).Pursuant to stake sale by IAG on 27th March 2020 SBI owns 70% while NapeanOpportunities LLP (Premji Invest affiliate) owns 16.01% Honey Wheat Investment Ltd. anentity forming part of Warburg Pincus Group owns 9.99% PI Opportunities Fund-1 owns 2.35%and Axis New Opportunities AIF-I owns 1.65% stake in SBI General Insurance.

The outbreak of COVID-19 has been deeply challenging and unprecedented.It has led to a sudden shift in the way businesses operate. For insurers as well thesituation has redefined the way of working for business continuity. The Company's robustBusiness Continuity Plan digital infrastructure and agile processes enabled seamlesstransition of work modes process automations and uninterrupted service to all itscustomers.

SBI General revamped its brand identity unveiling SBIGI 2.0. This newidentity reflects the digital agility and futurereadiness along with the parent brandSBI's intrinsic values. The new tagline ‘Suraksha Aur Bharosa Dono' stands tall asthe brand promise to customers. SBIGI 2.0 promises to bring in higher operationalefficiencies and quicker response times along with safety and security for all the

The Company won Finnoviti 2021 Award for innovation in making Healthinsurance available on Whatsapp.

The company recognized with 2 awards for CSR efforts towards empoweringthe rural population and clean water & sanitation drive by ICC Social Impact andAwards 2021.

During the year the company have been recognized with the ‘SilverShield' for ‘Excellence in Financial reporting 201920' in the Non-Life Insurancecategory organized by ICAI.

SBI General has been recognized as a ‘Company with Great Managers'at the Great Managers Awards 2020. The Company has been recognized for its CSR projectwith Learning Space Foundation by BfSi Digital Stallion Awards 2021.


(Rs. crore)

Name of the subsidiary company Ownership (SBI Interest) % of ownership Net Profit (losses) 31st March 2021
SBI Global Factors Ltd. 137.79 86.18% 18.47

SBIGFL is a leading provider of factoring services for domestic andinternational trade. SBI holds 86.18% share in the Company. The Company's services areespecially suitable for MSME clients for freeing up resources locked in book debts. Byvirtue of its membership of Factors Chain International (FCI) the Company is able toameliorate credit risk from export receivables under the 2-factor model.

The Company reported a PBT of Rs. 26.72 crore during the period endedMarch 2021 against previous period ended March 2020

SBI Life has a multi-channel distribution network comprising anexpansive bancassurance channel including State Bank the largest bancassurance partnerin India a large and productive individual agent network comprising 170096 agents as ofMarch 31 2021 as well as other distribution channels including direct sales and salesthrough corporate agents brokers insurance marketing firms and other intermediaries.

During the period ended March 31 2021 the Company operated in soundand stable manner with its sole objective of increasing insurance penetration andconcentrating on individual regular business and protection business through an active andprudent strategy sales team maintaining the quality as well as quantity and established afirmer market position. The Company has proven its market leadership in the year endedMarch 31 2021 with numero-uno position in Individual New Business Premium IndividualRated Premium Total Rated

PBT of Rs. 40.28 crore. In current period PAT is Rs.18.47 crore againstprevious period PAT of Rs.16.77 crore. Turnover period ended FY 2021 is Rs. 4352 crore ascompared to turnover of Rs. 4394 crore in previous year. Funds in use (FIU) as on 31stMar 2021 is Rs.1378 crore as compared to Rs.1317 crore as on 31st Mar 2020.Turnover in Export Factoring -2 Factor Model for 12 months ended March 2021 is equivalentto EUR 30.02 Mio (Previous Year EUR 46.48 mio). In INR terms the EF turnover touched Rs.262 crore for 12 months ended Mar 2021 as against Rs. 366.58 crore in previous year.

Premium and Total New Business Premium among private insurers.

The company witnessed a 24% growth in Total New Business Premium (NBP)vis-avis the industry growth of 7.5%. The market share of SBI Life in Total New BusinessPremium (NBP) among all private players as on 31st March 2021 is 21.9%. TotalNew Business of the Company for the year ended FY21 stands at Rs. 20624 crores. Group NewBusiness Premium for the year ended FY21 stands at Rs. 8125 crores; witnessing a growthof 52%.

The Company continues to maintain the leadership position amongstprivate players in number of policies issued which reflects mass coverage and strongmarket acceptance across geographies amongst life insurers. During the year more than16.5 lakhs individual new policies were issued.

SBI Life witnessed a PAT of Rs.1456 crores in FY21 against Rs.1422crores in FY20 growth of 2%. AUM of the Company crosses Rs. 2.2 trillion mark andrecorded a growth of 38% at Rs. 220871 crores as on 31st March 2021 ascompared to Rs.160363 crores as on 31st March 2020.

Value of New Business (VoNB) stood at Rs. 2334 crores on actual taxrate basis witnessing growth of 16%. VoNB margin stood at 20.4% on actual tax rate basis;an improvement of 170 basis points from FY20. Embedded value stands at Rs. 33386 croreson actual tax rate basis with growth of 27% over last year.

Leveraging wider reach achieved through its network of 947 offices SBILife has systematically brought large rural areas under insurance reach.

Awards and recognitions received during the year include:

1. Silver Award under the category of "CSR COVID ReliefProject" at the 4th CSR Health Impact Awards 2020.

2. ‘Insurer of the Year- Life Category' award at The InsuranceIndustry Awards 2020 by FICCI

3. ‘Silver' for ‘Real Life Real Stories featuring SuyashJadhav for ‘Best Use of Video' at the Shark Awards 2020.

4. ‘Silver' for ‘Real Life Real Stories featuring SuyashJadhav for ‘Best Branded Content' at the Brandwagon ACE Awards 2020.

5. ‘Gold' for ‘Real Life Real Stories featuring Suyash Jadhavat Campaign India Digital Crest Awards.

6. ‘Silver' under Digital Technologies by SKOCH Award for CKYCOffline KYC and ASP Process Integration Initiatives.

7. Won a Gold award for "Best rural activation sales volume"at the ‘Asia Consumer Engagement awards for rural marketing'.

8. Won a Gold award for "Long term rural engagement program of theyear" at the ‘Asia Consumer Engagement awards for rural marketing'.

9. Won a Gold award for "Small Budget on-ground program of theyear in rural" at the ‘Asia Consumer Engagement awards for rural marketing'.

10. Best CFO under BFSI - Large Cap category at Magzter Awards 2021.


(Rs. crore)

Name of the subsidiary company Ownership (SBI Interest) % of ownership Net Profit (losses) 31st March 2021
SBI Life Insurance Company Ltd. 555 55.50 1456


(Rs. crore)

Name of the subsidiary company Ownership (SBI Interest) % of ownership Net Profit (losses) 31st March 2021
SBI Funds Management Pvt. Ltd. 31.50 62.88% 860.40
SBI Mutual Fund Trustee Company Pvt. Ltd. 0.10 100% 2.74
SBI Funds Management (International) Pvt. Ltd. 100% by SBIFMPL 0.97

SBIFMPL the Asset Management Company of SBI Mutual Fund is amongstthe fastest growing AMCs with a growth of over 35% against the industry average of 18.8%in 2020-21. In the last three years SBIFMPL has achieved a CAGR of 32.3% against theindustry average of around 11.7%. In the FY 2020-21 the Fund House has consolidated the 1strank position which it achieved in the FY 2019-20. SBIFMPL has one of largest investorbase with over 89.5 Lakh LIVE investor folio's with about 18.5 Lakh new live investorfolio's added in the year. The Funds House has 17.2 Lakh direct investors and over 1.67Lakh institutional investors including 1273 retirement funds. SBIFMPL has maintained itstop leadership position as the ETF manager in the country with 50% market share.

SBIFMPL posted a PAT of Rs. 860.40 crore during the period ended March2021 as against Rs. 603.45 crore earned during the year ended March 2020. The average"Assets Under Management" (AUM) of the Company during the quarter ended March 21were Rs. 504455 Crore with a market share of 15.71% as against the average assets undermanagement of Rs. 373537 crore with a market share of 13.82% during the quarter endedMarch 2020. The Company has a fully owned foreign subsidiary viz. SBI Funds Management(International) Private Limited which is based in Mauritius and manages Off- shore Fund.SBIFMPL also provides Portfolio Management services (PMS) and Alternative Investment Funds(AIF).


(Rs. crore)

Name of the subsidiary company Ownership (SBI Interest) % of ownership Net Profit (losses) 31st March 2021
SBI Pension Funds Private Limited.* 18 60% 3.44

*SBI Capital Markets Limited and SBI Funds Management Private Limitedare holding 20% equity each in the Company.

SBIPFPL has been appointed as the Pension Fund Manager (PFM) along withsix others to manage the pension corpus under National Pension System (NPS). SBIPFPL isone of the three PFMs appointed by the Pension Fund Regulatory & Development Authority(PFRDA) for management of Pension Funds under the NPS for Central Government (except Armed

Forces) and State Government employees and one of the seven PFMsappointed for management of Pension Funds under the Private Sector. The total Assets UnderManagement (AUM) of the company as on 31st March 2021 was Rs. 222615.34crores (YoY growth of 39.00%) against Rs.160491.55 crore on 31st March 2020.

The Company maintained lead position amongst PFMs in terms of AUM inboth Government and Private Sectors. The overall AUM market share in Private Sector was55% while in the Government Sector it was 35%.

During the financial year 2020-21 Request for Proposal (RFP) forselection of Sponsors of Pension Funds for National Pension System (NPS) for GovernmentSector Schemes Private Sector Schemes and other Schemes Regulated / Administered wasfloated by PFRDA on 23rd December 2020. The Sponsors on behalf of the Companysubmitted the application and the Company has received the Fresh Certificate ofRegistration under the PFRDA (Pension Fund) Regulations 2015. The Company has alsostarted end-to- end digital platform for onboarding of Corporate and Individual subscriberunder NPS schemes.


Name of the subsidiary company Ownership (SBI Interest) % of ownership Net Profit 31st March
SBI SG Global Securities Services Pvt. Ltd. 52 65% 87.02

SBI-SG is a joint venture between State Bank of India and SocieteGenerale with 65% holding by SBI. The Company was set up to offer high quality custodialand fund administration services to complete the bouquet of premier financial servicesoffered to its premium clients by the SBI Group. SBI- SG commenced commercial operationsin 2010. The Company's Net Profit is Rs. 87.02 Cr for the period ended 31stMarch 21 as against Rs. 62.45 Cr for the period ended 31st March 2020.Accumulated profit is Rs. 209.99 Cr as on

31st March 21 as against Rs.143 .03 Cr as on 31stMarch 20.

Assets under Custody (AUC) have crossed Rs.1040000 Cr as on31.03.2021 while the Assets Under Administration (AUA) have crossed Rs. 700000 Cr as on31.03.2021. SBI-SG has been rated as one of the leading custodians in India as per GlobalCustodian magazine's Agent Banks and Emerging Markets Survey 2020. SBI-SG has alsobeen rated #1 custodian in India in the Global Investor/ISF Sub - Custody survey for 2017.


Name of the subsidiary company Ownership (SBI Interest) % of ownership Net Profit 31st March 2021
SBI Payment Services Private Limited 4.50 74% 139.95

SBI became the first public sector bank to form an exclusive JV i.e.SBI Payment Services Pvt. Ltd. (SBI Payments) for merchant acquiring business and holds74% stake in the company. The objective of the company is to create a state-of-the-artacceptance ecosystem in all geographies of the country and enable the merchants to acceptpayments digitally across various form factors.

SBI Payments is one of the largest acquirers in the country with morethan 2.22 mio Merchant Payment Acceptance Touch Points and over 7.47 lakhs PoS machines ason 31st March 2021 distributed across geographies (Tier 1 to Tier 6). Companyhas launched a low-cost mobile based payment acceptance solution i.e. YONO SBI merchantapplication to cater merchants from every category (micro merchants to large merchants).This acceptance model is fast and simple solution for merchants to fully manage theirbusiness directly from their phone and accept payments using various modes such as QRCards and YONO. Some of the other key initiatives taken by the company during thefinancial year are roll out of e-chargeslip and EMI facility on PoS terminals AndroidTerminals NCMC enablement etc.

SBI Payments is one of the subsidiaries of SBI to move to IND-ASaccounting system in year FY 19-20. The company posted net profit of Rs. 49 Cr in FY2019-20 and Rs.140 Cr in FY ended on 31st March 2021.


SBI Foundation was established by State Bank of India in 2015 as aSection VIII company under Companies Act (2013) to undertake the CSR activities of SBI andits Subsidiaries in a planned and focused manner.

Your Bank through the SBI Foundation is presently working on variousprojects & initiatives to build momentum for transforming India by creating aninclusive development paradigm that serves all Indians without any discrimination based onregion language caste creed religion amongst others. For FY2021 the total CSR spendon initiatives through SBI Foundation was Rs. 47.92 crore.


Your Bank supports four flagship programs which are implemented by SBIFoundation and are mentioned hereunder:

A. SBI Youth for India Fellowship (YFI):

SBI Youth for India fellowship is a 12-month fellowship program toprovide a framework for India's bright young minds to join hands with rural communitiesempathise with their struggles and connect with their aspirations. The selected fellowsfrom some of the top institutes/corporates work with 12 partner NGOs on challengingdevelopment projects. The initiative provides avenues for the youth to become aware of theground realities and presents them with an opportunity to contribute through their effortstowards building strong cohesive communities. YFI has an alumni base of 352 passionatechange makers approximately 70% of Alumni are associated with the development sectorafter the fellowship. At present the 8th Cohort with 100 fellows are deployedin rural geographies to undertake impactful projects.

B. SBI Gram Seva Program

"SBI Gram Seva" is a flagship program of SBI Foundationwhich aims for holistic and sustainable rural development. Launched in August 2017 SBIGram Seva has been quietly transforming adopted villages through integrated developmentapproach strategically including all major areas of rural development. The objectives ofthe program are:

• Digitalisation of villages

• Promotion of quality education for rural students

• Improvement of primary health services

• Improvement in accessibility to safe drinking water andsanitation

• Promote sustainable livelihood practices and improvingfarmers' income

• Empowerment of rural Women and Youth Engagement

• Environment protection

• Improvement of rural infrastructure for improved access to basicservices

• Improvement in coverage of benefits and schemes of theGovernment

• Capacity building for participatory rural development

In the first phase SBI Gram Seva was implemented in 50 villages inpartnership with Grassroots NGO partners from Assam Bihar Jharkhand Maharashtra UttarPradesh and Uttarakhand. Over the last three years the program has been able to make acommendable impact in the villages besides bringing community participation into thefore.

On 2nd October 2020 the second phase of the program waslaunched by adopting 25 new villages in 5 States-Meghalaya Mizoram Nagaland Telanganaand Karnataka. The program has so far impacted 16396 families and 74785 beneficiariesacross 11 states.

C. Centre of Excellence for

Persons with Disabilities (CoE)

The Centre of Excellence (CoE) primarily works on empowering PwDsthrough skill enhancement to make significant and measurable improvement that enablesindividuals to enjoy a more productive and satisfying life by optimising their cognitivephysical social and vocational functioning. The CoE has conducted 77 online trainingprogrammes for 3678 employees with disabilities from 9 public sector banks during FY2020-21. The CoE also conducted 11 online sensitisation and awareness programs ondisability for Human Resources (HR) Heads and middle level HR managers of 7 public sectorbanks NGO partners and SBI YFI Fellows.

Other programs funded by the Bank through SBI Foundation for promotinginclusion and empowerment of PwDs are:

• SBI and Microsoft Employment Initiative for Persons withDisabilities (S.A.M.E.I.P.) - An initiative undertaken in collaboration with MicrosoftIndia to enable career pathways for 500 underserved youth with disabilities in thedigitally transformed BFSI sector in

India by setting up five centres in five cities viz. Mumbai DelhiBangalore Chennai & Kolkata. The programme is being driven in collaboration withvarious government and industry skilling bodies and partner non-profit organisations tobuild a sustainable and scalable programme for the inclusion of people with disabilitiesin the BFSI space.

• Inclusive Education Program - An initiative to support 200 CwSN(children with special needs) in Vijayapura District of Karnataka to access comprehensiveinterventions of education and rehabilitation in model and community schools.

• Education Program for Children with Disabilities - An initiativeto provide education therapy and vocational skill development to 50 children withdisabilities and to set up a vocational centre to provide a means of earning a livelihoodand thereby empowering young adults with intellectual disabilities.

• Shravan Shakti: An initiative to integrate children between agegroup of 0-5 years with a congenital hearing loss into the mainstream by supporting thecochlear implant surgeries of 50 children in Kolkata and 17 children in Delhi NCR whichis helping them to lead a productive life. All 67 children have been operated upon so far.

• Braille Smart Class: An initiative to provide inclusiveeducation by use of an independent inclusive and accessible teaching mechanism in theform of Braille self-learning devices for Children with Visual Impairment on a pilot basisin Mumbai.

D. Healthcare Flagship Program

As a response to the COVID-19 pandemic in India and with a view tosupplement the efforts of Government your Bank through the SBI Foundation launched a newflagship programme on healthcare and undertook both short-term and mid/ long-term reliefinitiatives to combat the COVID-19 pandemic in India.

I. COVID-19 Relief Initiatives

Amidst the COVID-19 pandemic the country encountered an acute shortageof ventilators other health equipment and personal protective equipment (PPE) kits foruse by healthcare professionals and the police force. SBI Foundation procured 335ventilators which were distributed with help from SBI Circles across the country togovernment hospitals that are on the frontline in the war against COVID-19. Apart fromventilators 3650 other health equipment were procured which included thermal scannersself-check kiosks IR thermometers pulse oximeters ECG machines NST machine 2D echomachine fumigator fogging machines multipara monitors nebulisers radiometer oxygenconcentrator HFMC machines IV stands cardio monitors BiPap machines stretcher cabinsrecovery trolley and air conditioners for distribution to government hospitals. 74767 PPEkits were also distributed to healthcare professionals and the police force across thecountry.

Due to the state enforced lockdown to prevent the spread of COVID-19 inIndia migrants domestic help workers and daily wage earners were significantly impacted.685665 freshly cooked meals and dry ration kits were distributed amongst the vulnerablecommunities to help them sustain during the lockdown.

As part of our intervention to combat COVID-19 your Bank through theSBI Foundation funded two research and development projects through Indian Institute ofScience (IISc) to design a mobile molecular diagnostic and testing lab which was handedover to the Government of Karnataka to shorten turnaround time and scale-up COVID-19testing and to design an electro-mechanical ventilator design with locally availablecomponents.

Your Bank through the SBI Foundation also supported an initiative totrain and mentor 327954 healthcare providers across various states in India who areserving communities and populations most at risk from COVID-19 through dissemination ofbest practices for prevention and treatment of the coronavirus by adopting the ECHO model.10 hubs were established with State National Health Missions of Assam GujaratMaharashtra (with PHI Nagpur) Punjab Rajasthan Tamil Nadu Uttar Pradesh (withSGPGIMS) Karnataka Chhattisgarh and Kerala. Furthermore 10 STOs from 10 key stateswere identified under the project.

II. India Health Alliance an initiative by SBI Foundation

Your Bank through SBI Foundation launched the India Health Alliance(IHA) a collaborative healthcare programme to support the Government of India in itsefforts to combat current and future healthcare challenges in the country. The prime focusof IHA is on combating the COVID-19 healthcare pandemic in India providing comprehensiveprimary healthcare and optimum nutrition to the vulnerable population promotinginnovative finance as well as promoting innovations and cutting-edge technologies thatcan overall strengthen health systems of the country. Your Bank through the SBI Foundationundertook mid/long-term COVID-19 Relief Initiatives in partnership with variedimplementation partners:

• Community Based Testing - An initiative to reach out tovulnerable populations by rolling out a community-based testing initiative for COVID-19 inan urban slum locality in Mumbai India. The purpose of this initiative is earlyidentification of COVID-19 through intensive community surveillance quick testing(between 9000 - 14000 COVID-19 tests) through a diagnostic centre established for easyaccess and immediate treatment.

• Tele-Care for the Vulnerable - An initiative to reach out tovulnerable communities in urban slums of Indore Madhya Pradesh for providingperson-centred primary care counselling and emotional support & support in accessingthe social entitlements; schemes. The project will be implemented in two hyper-localisedvulnerable clusters in Indore covering a population of 50000 in each cluster and having100000 direct beneficiaries.

• Comprehensive COVID-19 Care to Strengthen Existing Efforts inPublic Health System - deployed 2 indigenously developed innovative technologies/solutions - COEO Labs (AI and sensor-based secretion management product) and Turtle ShellTechnologies Dozee (India's first contactless vital monitoring device) at public healthcare organisations including PHCs hospitals and quarantine centres in worst affectedcities viz. Mumbai Delhi Chennai Lucknow Guntur Vizag and Rajamundry. Thetechnologies were supported through

our partnership with Centre for Cellular and Molecular Platforms(C-CAMP) an initiative supported by Department of Biotechnology Ministry of ScienceTechnology and Earth Sciences Government of India.

III. Projects in partnership with Implementing Agencies

To contribute towards improving the health scenario in India your Bankhas also extended its support to various CSR projects through SBI Foundation to provideaccess to quality healthcare to all. Some of the key projects are mentioned hereunder:

• Swasth Mahila Swasth Goa - An initiative to provide atechnology intervention in the form of iBreast devices training and capacity buildingsupport to the Government of Goa to screen 100000 women for breast cancer in the Stateover a period of 2 years.

• The School Initiative for Mental Health Advocacy - An initiativeto support schools in Mumbai India through the pandemic by conducting capacity buildingwebinars for teachers counsellors and leaders and providing online consultation toschools; and to develop systems and pathways for whole-school mental health services forschools in India.

• Project Jagruti - An initiative to reach out to remote villagesand tribal hamlets in Murbad Tehsil Thane district for providing basic healthcareservices and creating awareness on healthcare with the populations who have limited or noaccess to any healthcare facilities.

• Sanjeevani: Clinic on Wheels (Sikkim & Telangana) - Aninitiative to operate two mobile medical units to reach 20 rural villages each in Namchiblock Sikkim and in Gadwal district Telangana.

Apart from the flagship programs and the COVID-19 Relief Response yourBank through SBI Foundation has supported the following CSR initiatives in varied thematicareas:


Education is one of the most important tools to bring about asocio-economic transformation within society. However not all sections of the societyhave equal

access to the same and therefore your Bank through SBI Foundation hassupported various educational projects to provide children with access to qualityeducation. Some of the key projects are mentioned hereunder:

• Gyan Shala Middle School Programme

- An initiative to further the common goal of providing quality middleschool education to underprivileged children between 4th and 8thgrades living in the slums of Ahmedabad Gujarat. A total of 1799 out-of-school/underprivileged children were imparted high quality middle school education under theproject. Gyan Shala model has the potential to redefine the way learning is conceived andorganised in schools.

• CM RISE - New Horizons - An initiative to support learning ofunderprivileged children who study in government schools by improving the quality ofteacher workforce through sustained high-quality professional development across 52districts in Madhya Pradesh and thereby significantly improve the quality of learning inthe State.

• Prarambhik Bhasha Shikshan Program

- An initiative to build capacities of the government school teacherswith the

aim of improving language learning outcomes of ~16000 children acrossschools of Ambala district Haryana. 7138 children studying in 479 schools of Ambaladistricts are being reached out to under the Program. The Prarambhik Bhasha ShikshanProgram is a part of India's first ever development impact bond - the Haryana EarlyLiteracy Outcomes Development Impact Bond (DIB).

• Personal Safety Education & Child Sexual Abuse Prevention& Training - An initiative to reach out to over 3429 children and 1509 caregiverswith messages of personal safety through the Personal Safety Education Initiativecovering schools of Mumbai Maharashtra. The initiative will enable students to identifyand talk about sexual assault and disclose first-hand experiences which will make themfeel less vulnerable and help do away with the culture of silence.

• Learn Play Grow - An initiative to provide high qualityeducational content for 60000 children and their caregivers in 3000 anganwadis across 4districts of Meghalaya in India building the capacity of anganwadi workers (AWWs)

to prepare children for school by using early learning materials in aplay-based manner engaging and educating parents and caregivers on fun ways to supportchild's educational development.

• Project Gadadhar Abhyudaya Prakalpa (GAP) - An initiative tosupport five GAP units for a duration of 3 years for conducting activities aimed atphysical mental and intellectual development of underprivileged children enrolled at GAPunits.


• STEAM Scholarship - An initiative to support a year-long STEAM(Standing for Science Technology Engineering Analytics and Medicine) Scholarship inpartnership with Abhinav Bindra Foundation Trust for 13 grassroots athletes of varioussports granting them full access to sports science facilities and provide customisedsports specific routines based on their goals in consultation with their coaches.


To achieve the dual goals of preservation of Culture & Heritage andcontribute to "The Swachh Iconic Places" initiative SBI Foundation supportedthe following project:

• Swachh Iconic CSMT - An initiative for conservation andrestoration of South and East fagade of the Heritage Building at Chhatrapati ShivajiMaharaj Terminus Mumbai in partnership with Central Railways.


Your Bank is committed towards environment protection and to reduce itscarbon footprints. Hence your Bank through the SBI Foundation has supported the followingprojects:

• Waste No More - An innovative Private Public Partnership (PPP)project for dry waste management with 100% segregation and recycling dry waste incollaboration with Municipal Corporation of Greater Mumbai Hindustan Unilever India andXynteo India.

• Sanitation Project - A SBI Green Fund initiative to construct 42new community toilets and upgrade 15 existing community toilets in Dekadong and Doomnivillages in Baksa district of Assam.

• Towards Green Livelihoods: Promoting Bamboo based Livelihoods& Sustainable Ecosystem - A SBI Green Fund initiative to plant 12000 bamboo saplingsin 6 nurseries created on private/community waste lands of tribal farmers in Nashik andPalghar districts of Maharashtra.

• Tree Plantation Project - A SBI Green Fund initiative to plant10000 indigenous species of trees in over 42 hectares of wastelands in UdaipurRajasthan.

• Jal Dhara - A SBI Green Fund initiative to rejuvenate 4Himalayan springs and ensure water security by optimum spring shed management and thusrecharge the springs through community participation in Almora and Bageshwar districts ofUttarakhand.

• Clean Energy - A SBI Green Fund initiative to providedecentralised solar home lighting solutions along with hybridisation of existing microhydro plant with solar photovoltaic system for continuous access to clean energy inKalahandi and Gajapati districts of Odisha.

• Project WasteEnd - A SBI Green Fund initiative to enable ruralcommunities to design and setup low-cost waste management systems operated and

managed by the communities living in Ajmer district Rajasthan.

• Empowering Rural Communities- An initiative to support andempower 150 voluntarily relocated families living in and around Protected Forest Areas inthe Western Ghats of India by aiming to reclaim 375 acres of land under protected area byproviding alternative sustainable livelihood support.


Your Bank supported R&D efforts aimed at promoting clean energytransport and sustainable energy solutions in India in collaboration with IIT Madras bysupporting the projects mentioned hereunder:

• Development and Upgradation of CBEEV's Assets &Infrastructure- An initiative to support the Development and Upgradation of CBEEV's Assets& Infrastructure for procuring necessary equipment to upgrade the research facilitiesat CBEEV and enable R&D activities and innovative product development that arecost-effective user-friendly and efficient by conducting various tests on Li-ionbatteries chargers EVs and micro-grid amongst others.

• Infrastructure Systems Lab and R&D in InfrastructureDelivery - An initiative for setting up the Infrastructure Systems Lab and undertakeR&D in Infrastructure Delivery by procuring necessary equipment to set up a moderninfrastructure systems laboratory for prototyping and testing next generation solutionswith a view to solve problems in infrastructure development.


SBI Foundation has won two awards during this year for its CSRinitiatives:

Name of the Award Category
Grant Thornton SABERA 2020 Awards Agriculture and Rural Development
Corona Warriors Award by Hon'ble Governor of Maharashtra. Healthcare
ICC Social Impact Awards 2021 Empowering the Rural Population


With two-third of our country's population living in rural areas itpresents a huge yet under tapped opportunity for the Indian Banking Sector. Our largenetwork of sponsored Regional Rural Banks (RRBs) is well placed to play a larger role andhave a great potential to address this scenario. Regional Rural Banks have a distinctcompetitive advantage due to their large account base and decades of trustearning servicetradition resulting in close proximity to the rural customers.

• The State Bank has sponsored 14 Regional Rural Banks operatingat regional levels in 14 different States. These RRBs have a combined branch strength of4726 spread across 216 Districts as on 31st March 2021.

• State Bank of India holds 35% stake in each of them as on31.03.2021 with Government of India holding 50% and the respective State Governmentsholding the remaining 15% stake.

• The Sponsored RRBs of SBI are on CBS platform and offer bankingservices on par with any other commercial Banks operating in the country. The Banks haveadopted the best practices and are well placed to handle the ever-evolving demands ofcustomers particularly in Rural and Semi-urban space through their customer centricapproach.

Ownership Percentage of SBI In RRBs sponsored by SBI

% Sr. No. Name of RRBs
35.00% 1 Andhra Pradesh Grameena Vikas Bank
35.00% 2 Arunachal Pradesh Rural Bank
35.00% 3 Chhattisgarh Rajya Gramin Bank
35.00% 4 Ellaquai Dehati Bank
35.00% 5 Jharkhand Rajya Gramin Bank
35.00% 6 Madhyanchal Gramin Bank
35.00% 7 Meghalaya Rural Bank
35.00% 8 Mizoram Rural Bank
35.00% 9 Nagaland Rural Bank
35.00% 10 Rajasthan Marudhara Gramin Bank
35.00% 11 Saurashtra Gramin Bank
35.00% 12 Telangana Grameena Bank
35.00% 13 Utkal Grameen Bank
35.00% 14 Uttarakhand Gramin Bank

Business Highlights of FY 2020-21 :

• The aggregate deposits and advances of the 14 RRBs sponsored bythe Bank as on 31st March 2021 stood at Rs.105628 cr and Rs. 66551 crrespectively as against Rs. 93474 cr and Rs. 57842 cr as on 31st March 2020.

• During the year under review despite the persistentlychallenging macroeconomic environment and Covid pandemic the Bank improved its businesswith Deposits growing by 13.00% and Advances by 15.06% on

YoY as on 31st March 2021. As a planned strategy todiversify to the portfolio RRBs expanded their Housing Loan and Gold Loan exposure by20.35% and 91.73% (YoY) respectively.

• During FY2020-21 the RRBs together have posted a Net-Profit ofRs.1004.28 cr as against Net-Profit of Rs. 248.80 cr as on 31st March 2020despite substantial provision of Pension of Rs.1457.69 Cr. The Banks continue to focus onimproving earnings from their core banking business strengthening the fee income streamsand maintaining control on operating costs.

• The combined Gross Non- Performing Assets ratio of the RRBs hasdeclined to 5.44% in current Financial year as against 5.96% as on 31st March2020 due to focused approach for reduction of NPA. The Net NPA stands at 2.16% as against2.56% as on 31st March 2020.

• Business per employee during the FY improved to Rs.10.09 cr ason 31st March 2021 as against Rs. 8.43 cr in the previous FY.

Major Developments in FY 2020-21:

The year under review witnessed several significant events some ofwhich are listed below:

• In November 2019 in line with a Government of India decision toamalgamate 3 RRBs operating in the state of Uttar Pradesh "Purvanchal Bank"sponsored by SBI was amalgamated with Baroda U.P. Bank under the sponsorship of Bank ofBaroda w.e.f. 01.04.2020.

• The 14 RRBs with 4726 Branch network are expected to work moreefficiently in the upcoming years thanks to the introduction of Asset Management Hubs(AMHs) - a Centralised Credit Processing system.

• In order to counter the competition from new age Banks in thegeography and to have a digital presence our 2 large RRBs i.e. Andhra Pradesh GrameenaVikas Bank and Telangana Grameena Bank have launched Mobile App for Digital accountopening with Video KYC facility. This facility is being implemented in all 14 RRBssponsored by SBI.

The Bank exited from its RRBs as per details given below: -

Name of RRB Amount
Purvanchal Bank 13.21

In accordance with notification issued by Govt. of India the followingamalgamations have taken place in between the Regional Rural Banks sponsored by SBI andRRBs sponsored by other banks.

The details of amalgamation of RRBs where the transferee RRBs are notsponsored by State Bank of India are as below

Name of transferor RRBs Sponsor Bank of transferor RRBs New Name after Amalgamation of RRBs Sponsor Bank of transferee RRBs Effective Date of Amalgamation
Baroda Uttar Pradesh Gramin Bank Bank of Baroda
Kashi Gomti Samyut Gramin Bank Union Bank of India Baroda U.P. Bank Bank of Baroda 1st April 2020
Purvanchal Bank State Bank of India


Sr. Name of the Associate Country of Incorporation

Group's Stake (%)

No. Current Year Previous Year
1 Andhra Pradesh Grameena Vikas Bank India 35.00 35.00
2 Arunachal Pradesh Rural Bank India 35.00 35.00
3 Chhattisgarh Rajya Gramin Bank India 35.00 35.00
4 Ellaquai Dehati Bank India 35.00 36.27$$
5 Jharkhand Rajya Gramin Bank India 35.00 35.00
6 Madhyanchal Gramin Bank India 35.00 35.46##
7 Meghalaya Rural Bank India 35.00 35.00
8 Mizoram Rural Bank India 35.00 35.00
9 Nagaland Rural Bank India 35.00 35.00
10 Purvanchal Bank India 35.00 35.00
11 Rajasthan Marudhara Gramin Bank India 35.00 35.00
12 Saurashtra Gramin Bank India 35.00 35.00
13 Telangana Grameena Bank India 35.00 35.00
14 Utkal Grameen Bank India 35.00 36.51**
15 Uttarakhand Gramin Bank India 35.00 35.00

$$ Sponsor Bank and State Govt had infused their part of'5.48 crore andRs. 2.35 crore respectively of approved fresh infusion of Share Capital. During theFY2020-

21 Central Govt had infused their part of share capital ofRs.7.83crore and our share is restored to 35%.

## Sponsor Bank and GOI had infused their part of'8.91 crore andRs.1273 crore respectively of approved fresh infusion of Share Capital. During the FY2020-21 State Govt had infused their part of share capital of'3.82 crore and our share isrestored to 35%.

** Sponsor Bank and GOI had infused their part of'93.856 crore andRs.134.08 crore respectively of approved fresh infusion of Share Capital. During theFY2020-21 State Govt had infused their part of share capital of'40.22 crore and our shareis restored to 35%.

During the year SBI has Invested/ Disinvested capital in the followingRegional Rural Banks (RRBs) sponsored by it:-

Regional Rural Banks Investment Amount Disinvestment Amount Remarks
Madhyanchal Gramin Bank 5.31 0.00
Purvanchal Bank 0.00 13.21 Due to Amalgamation
TOTAL 5.31 13.21

The SBI Group's stake remains the same after the aforesaid capitalinfusion.


In terms of compliance with the SEBI (Listing Obligations &Disclosure Requirements) (Amendment) Regulations 2018 following ratios have changed bymore than 25% as per details given below:

(in %) Mar 20 Mar 21 Variation (bps) % Change
Net Profit Margin 4.79 6.61 182 38.00
ROE 7.74 9.94 220 28.42

Net Profit Margin:

The Net Profit has registered YoY growth of 40.88% (from a profit ofRs.14488 Cr in FY20 to Net Profit of Rs. 20410 Cr during FY21) as against YoY growth ofonly 2.02% in Total Income (from Rs. 302545 Cr in FY20 to Rs. 308647 Cr in FY21).

Return on Net worth:

The Net Profit has registered YoY growth of 40.88% (from a profit ofRs.14488 Cr in FY20 to Net Profit of Rs. 20410 Cr during FY21) as against YoY growth ofonly 9.50% in Net worth of the Bank (from Rs.196037 Cr in FY20 to Rs. 214666 Cr inFY21).


The Board of Directors hereby states:

i. that in the preparation of the annual accounts the applicableaccounting standards have been followed along with proper explanation relating to materialdepartures;

ii. that they have selected such accounting policies and applied themconsistently and made judgements and estimates as are reasonable and prudent so as togive a true and fair view of the state of affairs of your Bank as on the 31stMarch 2021 and of the profit and loss of Your Bank for the year ended on that date;

iii. that they have taken proper and sufficient care for themaintenance of adequate accounting records in accordance with the provisions of theBanking Regulation Act 1949 and State Bank of India Act 1955 for safeguarding the assetsof your Bank and preventing and detecting frauds and other irregularities;

iv. that they have prepared the annual accounts on a going concernbasis;

v. hat the internal financial controls had been laid down to befollowed by your Bank and that such internal financial controls are adequate and wereoperating effectively; and

vi. that proper system had been devised to ensure compliance with theprovisions of all applicable laws and that such systems were adequate and operatingeffectively.


During the year Shri Sanjiv Malhotra Shri Bhaskar Pramanik and ShriBasant Seth retired from the Board on 25th June 2020 whereas Dr. Purnima Guptaretired from the Board on 31st January 2021 consequent upon completion oftheir respective terms. Shri B. Venugopal was reelected as Director by shareholders u/s19(c) of the SBI Act 1955 w.e.f. 26th June 2020 on the Board. Dr. GaneshNatarajan Shri Ketan S. Vikamsey and Shri Mrugank M. Paranjape were elected by theShareholders as Directors on the Board u/s 19(c) of the SBI Act 1955 w.e.f. 26thJune 2020. Shri Ashwani Bhatia was appointed as Managing Director on the Board w.e.f. 24thAugust 2020 whereas Shri Swaminathan J. and Shri Ashwini Kumar Tewari were appointed asManaging Directors on the Board w.e.f. 28th January 2021.

Shri Rajnish Kumar retired as Chairman on completion of his tenure on 6thOctober 2020 and Shri Dinesh Kumar Khara was appointed as Chairman in his place w.e.f. 7thOctober 2020. Shri Arijit Basu Managing Director superannuated on 31stOctober 2020.

The Directors place on record their appreciation for the contributionsmade by Shri Rajnish Kumar the outgoing Chairman Shri Arijit Basu Managing Directorand Non-executive Directors namely Shri Sanjiv Malhotra Shri Bhaskar Pramanik ShriBasant Seth and Dr. Purnima Gupta to the deliberations of the Board.

The Directors welcome the new Chairman Shri Dinesh Kumar Khara newManaging Directors namely Shri Ashwani Bhatia Shri Swaminathan J. Shri Ashwini KumarTewari and new Non-executive Directors namely Dr. Ganesh Natarajan Shri Ketan S.Vikamsey and Shri Mrugank M. Paranjape on the Board.

The Directors also express their gratitude for the guidance andco-operation received from the Government of India RBI SEBI IRDA and other governmentand regulatory agencies.

The Directors also thank all the valued clients shareholders Banksand financial institutions stock exchanges rating agencies and other stakeholders fortheir patronage and support and take this opportunity to express their appreciation forthe dedicated and committed team of employees of the Bank.

For and on behalf of the
Central Board of Directors
Date: 21st May 2021 Chairman