1. Summary Information

		Country	India
Company Name	STATE BANK OF INDIA	Principal Name 1	Mr. Pradip Chaudhari
Status	Excellent	Principal Name 2	Mr. Diwakar Gupta
		Registration #
Street Address	State Bank Bhavan, Central Office, 8^th Floor, Madame Cama Marg, Nariman Point, Mumbai – 400021, Maharashtra, India
Established Date	1806	SIC Code	--
Telephone#	91-22-22830535/ 22883888	Business Style 1	Banking Activities
Fax #	91-22-22855348	Business Style 2	--
Homepage	http://www.sbi.co.in	Product Name 1	--
# of employees	228296 (Approximately)	Product Name 2	--
Paid up capital	Rs. 6840,340,000/-	Product Name 3	--
Shareholders	Promoter and Promoter Group- 63.86 % Public shareholding- 36.14%	Banking	Reserve Bank of India
Public Limited Corp.	YES	Business Period	207 Years
IPO	YES	International Ins.	-
Public Enterprise	YES	Rating	Aaa (87)
Related Company
Relation	Country	Company Name	CEO
Associates	--	Andhra Pradesh Grameena Vikas Bank	--
Note	-

2. Summary Financial Statement

Balance Sheet as of	31.03.2013		(Unit: Indian Rs.)
Assets		Liabilities
Cash and balances with Reserve Bank of India	658,304,104,000	Share Capital	6,840,340,000
Balance with Banks and Money at call and short notice	489,897,541,000	Reserves & Surplus	981,996,514,000
Investments	3,509,272,716,000	Deposits	12,027,395,743,000
Advance	10,456,165,531,000	Borrowings	1,691,827,136,000
Fixed Assets	70,050,222,000	Other Liabilities and Provision	954,550,670,000
Others Assets	478,920,289,000
Total Assets	15,662,610,403,000	Total Liab. & Equity	15,662,610,403,000
Total Assets (Previous Year)	13,355,192,307,000
P/L Statement as of	31.03.2013		(Unit: Indian Rs.)
Sales	1,196,570,990,000	Net Profit	141,049,849,000
Sales(Previous yr)	1,065,214,534,000	Net Profit(Prev.yr)	117,072,886,000

MIRA INFORM REPORT

Report Date :

16.10.2013

IDENTIFICATION DETAILS

Name :	STATE BANK OF INDIA
Registered Office :	State Bank Bhavan, Central Office, 8^th Floor, Madame Cama Marg, Nariman Point, Mumbai – 400021, Maharashtra
Country :	India
Financials (as on) :	31.03.2013
Year of Establishment :	1806
Capital Investment / Paid-up Capital :	Rs.6840.340 Millions
Legal Form :	Subject is a Public Sector Commercial Bank Owned by the Government of India. The Bank's Shares are Listed on the Stock Exchanges.
Line of Business :	Banking Activities.
No. of Employees :	228296 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Aaa (87)

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited

Maximum Credit Limit :	USD 3900000000
Status :	Excellent
Payment Behaviour :	Prompt
Litigation :	Clear
Comments :	Subject is the oldest and the largest bank in India. It is the flagship of Indian Banking. Subject will receive strong support from its majority owner, the Government of India. It is a having an excellent track record. Financial position of the bank is outstanding. Trade relations are reported as praiseworthy. Business is highly active. Payment terms are prompt. The bank can be considered excellent for any business dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INDIAN ECONOMIC OVERVIEW

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Certificate of Deposit: A1+ (Short Term Rating)
Rating Explanation	Very strong degree of safety and carry lowest credit risk.
Date	July 2013

Rating Agency Name	ICRA
Rating	Rs. 2500.000 Millions Tire Ii Bonds Programme: AAA (Long Term Rating)
Rating Explanation	Highest degree of safety and carry lowest credit risk.
Date	July 2013

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

LOCATIONS

Registered/ Corporate Office :	State Bank Bhavan, Central Office, 8^th Floor, Madame Cama Marg, Nariman Point, Mumbai – 400021, Maharashtra, India
Tel. No.:	91-22-22830535/ 22883888/ 22022678/ 22740841-48
Fax No.:	91-22-22855348
E-Mail :	sbimucnw@vsnl.net investor.complaints@sbi.co.in
Website :	http://www.sbi.co.in http://www.statebankofindia.com
Central Office :	State Bank Bhavan, P. B. No. 12, Madame Cama Road, New Administrative, Mumbai – 400021, Maharashtra, India
Tel No.:	91-22-22022426
Fax No.:	91-22-22852708/ 22040073/ 2385139
Local Boards :	Located at : · Kolkata · Mumbai · Chennai · New Delhi · Lucknow · Ahmedabad · Hyderabad · Patna · Bhopal · Bhubaneshwar · Chandigarh · Guwahati · Bangalore

DIRECTORS

As on 31.03.2013

Name :	Mr. Pradip Chaudhari
Designation :	Chairman
Name :	Mr. Hemant G. Contractor
Designation :	Managing Director
Name :	Mr. Diwakar Gupta
Designation :	Managing Director
Name :	Mr. A. Krishna Kumar
Designation :	Managing Director
Name :	Mr. S. Vishvanathan
Designation :	Managing Director
Name :	Mr. S. Venkatachalam
Designation :	Director
Name :	Mr. D. Sundaram
Designation :	Director
Name :	Mr. Parthasarathy Iyengar
Designation :	Director
Name :	Mr. Thomas Mathew
Designation :	Director
Name :	Mr. Jyoti Bhushan Mohapatra
Designation :	Workmen Employee Director
Name :	Mr. S.K. Mukherjee
Designation :	Officer Employee Director
Name :	Dr. Rajiv Kumar
Designation :	Director
Name :	Mr. Deepak Ishwarbhai Amin
Designation :	Director
Name :	Mr. Harichandra Bahadur Singh
Designation :	Director
Name :	Mr. Rajiv Takru
Designation :	Director
Name :	Mr. Urjit R. Patel
Designation :	Director

KEY EXECUTIVES

COMMITTEES OF THE BOARD

Executive Committee of the Central Board (ECCB)	Mr. R. Sridharan -Managing Directors Mr. Hemant G. Contractor Mr. Diwakar Gupta Mr. A. Krishna Kumar Mr. S. Vishvanathan
Audit Committee of the Board (ACB)	Mr. S. Venkatachalam, Director – Chairman of the Committee Mr. D. Sundaram, Director – Member Mr. Thomas Mathew, Director – Member Dr. Rajiv Kumar, Director –Member Mr. Rajiv Takru, GOI Nominee – Member Dr. Urjit R. Patel, RBI Nominee – Member Mr. Hemant G. Contractor, MD and GE (NB) –Member (Ex-Officio Mr. A. Krishna Kumar, MD and GE (NB) –Member (Ex-Officio
Risk Management Committee of the Board (RMCB)	Mr. Hemant G. Contractor, MD and GE (IB) – Member (Ex-Officio) Chairman of the Committee Mr. Diwakar Gupta, MD and CFO-Member (Ex-Officio) Mr. S. Venkatachalam, Director – Member Mr. D. Sundaram, Director – Member Mr. Thomas Mathew, Director – Member Dr. Rajiv Kumar, Director – Member Mr. Deepak I. Amin, Director – Member
Shareholders’/Investors’ Grievance Committee of the Board (SIGCB)	Mr. S. Venkatachalam, Director– Chairman of the Committee Mr. Thomas Mathew, Director – Member Dr. Rajiv Kumar, Director – Member Mr. Harichandra Bahadur Singh, Director – Member Mr. Hemant G. Contractor, MD and GE(IB) – Member (Ex-Officio) Mr. S. Vishvanathan, MD and GE(A and S) - Member (Ex-Officio)
Special Committee of the Board of Directors for Monitoring of Large Value Frauds	Mr. Diwakar Gupta, MD and CFO-Member (Ex-Officio) - Chairman of the Committee Mr. S.Vishvanathan, MD and GE(A and S) - Member (Ex-Officio) Mr. S. Venkatachalam, Director – Member Mr. Parthasarathy Iyengar, Director – Member Mr. Thomas Mathew, Director – Member Dr. Rajiv Kumar, Director – Member Mr. Deepak I. Amin, Director – Member Mr. Harichandra Bahadur Singh, Director – Member
Customer Service Committee of the Board (CSCB)	Mr. A. Krishna Kumar, MD and GE(NB) – Member (Ex-Officio) - Chairman of the Committee Mr. S. Vishvanathan, MD and GE(A and S) - Member (Ex-Officio) Mr. S. Venkatachalam, Director – Member Mr. Thomas Mathew, Director – Member Mr. Harichandra Bahadur Singh, Director – Member Mr. Jyoti Bhushan Mohapatra, Director – Member Mr. S. K. Mukherjee, Director – Member
IT Strategy Committee of the Board (ITSC)	Mr. D. Sundaram, Director - Chairman of the Committee Mr. S. Venkatachalam, Director – Member Mr. Parthasarathy Iyengar, Director – Member Mr. Deepak I . Amin, Director – Member Mr. Diwakar Gupta, MD and CFO - Member (Ex-Officio) Mr. A. Krishna Kumar, MD and GE(NB) – Member (Ex-Officio)
Remuneration Committee of the Board	Mr. Rajiv Takru, GOI Nominee – Member (Ex-Officio) Dr. Urjit R. Patel, RBI Nominee – Member (Ex-Officio) Mr. S. Venkatachalam, Director – Member Mr. D. Sundaram, Director – Member
Board Committee to Monitor Recovery (BCMR)	Mr. Pratip Chaudhuri, Chairman Mr. Hemant G. Contractor, MD and GE(IB) – Member Mr. Diwakar Gupta, MD and CFO – Member Mr. A. Krishna Kumar, MD and GE(NB) – Member Mr. S. Vishvanathan, MD and GE (AandS) – Member Mr. Rajiv Takru, GOI Nominee – Member (Ex-Officio)

MEMBERS OF LOCAL BOARD:

Ahmedabad	Mr. S. A. Ramesh Rangan Chief General Manager (Ex-Officio)
Bangalore	Mr. Ashwini Mehra Chief General Manager (Ex-Officio)
Bhopal	Mr. Dinesh K. Khara Chief General Manager (Ex-Officio) Mr. Ramesh Warlyani Mr. G. P. Gupta Mr. Manohar Bothra
Bhubaneswar	Mr. Praveen Kumar Gupta Chief General Manager (Ex-Officio)
Chandigarh	Mr. N. Krishnamachari Chief General Manager (Ex-Officio) Mr. Vinod Bihari Sharma Smt. Ravinder Kaur
Chennai	Mrs. Varsha Purandare Chief General Manager (Ex-Officio) Mr. T. R. Loganathan
Hyderabad	Mr. Rakesh Sharma Chief General Manager (Ex-Officio)
Kolkata	Mr. Sunil Srivastava Chief General Manager (Ex-Officio)
Lucknow	Mr. Sudhir Dubey, Chief General Manager (Ex-Officio) Mr. Harichandra Bahadur Singh* Mr. Madan Mohan Shukla
Mumbai	Dr. J. N. Misra, Chief General Manager (Ex-Officio) Mr. S. Venkatachalam* Mr. D. Sundaram* Mr. Parthasarathy Iyengar* Mr. Thomas Mathew* Mr. S. M. Lodha
Delhi	Mr. Kajal Ghose, Chief General Manager (Ex-Officio) Dr. Rajiv Kumar* Mr. Deepak Ishwarbhai Amin*
North Eastern	Mr. Rajnish Kumar, Chief General Manager (Ex-Officio) Mr. Ashok Kumar Das
Patna	Mr. Jeevandas Narayan, Chief General Manager (Ex-Officio) Mr. Tanvir Akhtar Mr. Sanjay Mandal
Kerala:	Dr. M. Sreenatha Sastry, Chief General Manager (Ex-Officio) Mrs. Alphonsa John Mr. Sudhir Abraham Mr. Philip Mathew
MEMBERS OF CENTRAL MANAGEMENT COMMITTEE:	Mr. Pratip Chaudhuri, Chairman Mr. Hemant G. Contractor, Managing Director and Group Executive, (International Banking) Mr. Diwakar Gupta, Managing Director and Chief Financial Officer Mr. A. Krishna Kumar, Managing Director and Group Executive (National Banking) Mr. S. Vishvanathan, Managing Director and Group Executive (Associates and Subsidiaries) Mr. Shyamal Acharya, Deputy Managing Director and Group Executive (Mid Corporate) Mr. S. B. Nayar, Deputy Managing Director and Group Executive (Corporate Banking) Mr. R. Venkatachalam, Deputy Managing Director and Chief Credit and Risk Officer Mrs. Soundara Kumar, Deputy Managing Director and Group Executive (Stressed Assets Management) Mr. P. Pradeep Kumar, Deputy Managing Director and Group Executive (Global Markets) Mr. R. K. Saraf, Deputy Managing Director (Corporate Strategy and New Businesses) Mr. B. V. Chaubal, Deputy Managing Director and Corporate Development Officer Mr. S. K. Mishra, Deputy Managing Director and Chief Information Officer Mr. V. Murali, Deputy Managing Director (Inspection and Management Audit)

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.03.2013

Category of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Central Government / State Government(s)	426241140	63.86
Sub Total	426241140	63.86
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	426241140	63.86
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	33198623	4.97
Financial Institutions / Banks	1405503	0.21
Central Government / State Government(s)	192483	0.03
Insurance Companies	74923249	11.22
Foreign Institutional Investors	73450644	11.00
Qualified Foreign Investor	8415	0.00
Sub Total	183178917	27.44
(2) Non-Institutions
Bodies Corporate	16516609	2.47
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	37812309	5.66
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	1621496	0.24
Any Others (Specify)	2141974	0.32
Non Resident Indians	1062901	0.16
Trusts	518189	0.08
Overseas Corporate Bodies	1000	0.00
Foreign Nationals	296	0.00
Foreign Corporate Bodies	20110	0.00
Clearing Members	539478	0.08
Sub Total	58092388	8.70
Total Public shareholding (B)	241271305	36.14
Total (A)+(B)	667512445	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	16521526	0.00
Sub Total	16521526	0.00
Total (A)+(B)+(C)	684033971	0.00

BUSINESS DETAILS

Line of Business :

Banking Activities

GENERAL INFORMATION

No. of Employees :	228296 (Approximately)
Bankers :	Reserve Bank of India

Banking Relations :	---
Auditors :	· Todi Tulsyan and Company Patna, Patna Circle · SCM Associates Bhubaneshwar, Bhubaneshwar Circle · Singhi and Company Kolkata, North Eastern Circle · S. N. Nanda and Company New Delhi, Kerala Circle · T. R. Chadha and Company New Delhi, Mumbai Circle · S. Venkatram and Company Chennai, Chennai Circle · Prakash and Santosh Kanpur, Bhopal Circle · K. B. Sharma and Company Jammu, Chandigarh Circle · Add and Associates Kolkata, Ahmedabad Circle · V. P. Aditya and Company Kanpur, Lucknow Circle · S. Jaykishan Kolkata, Bengal Circle · Dhamija Sukhija and Company Srinagar, Delhi Circle · Sriramamurthy and Company Visakhapatnam, Hyderabad Circle · V. Soundararajan and Company Chennai, Bangalore Circle
Domestic Banking Subsidiaries :	1. State Bank of Bikaner and Jaipur 2. State Bank of Hyderabad 3. State Bank of Mysore 4. State Bank of Pati ala 5. State Bank of Travancore
Foreign Banking Subsidiaries	1. SBI (Mauriti us) Limited 2. State Bank of India (Canada) 3. State Bank of India (California) 4. Commercial Bank of India LLC, Moscow 5. PT Bank SBI Indonesia 6. Nepal SBI Bank Limited
Domestic Non-Banking Subsidiaries	1. SBI Capital Markets Limited 2. SBI DFHI Limited 3. SBI Mutual Funds Trustee Company Private Limited 4. SBICAP Securities Limited 5. SBICAPS Ventures Limited 6. SBICAP Trustees Company Limited 7. SBI Cards and Payment Services Private Limited 8. SBI Funds Management Private Limited 9. SBI Life Insurance Company Limited 10. SBI Pension Funds Private Limited 11. SBI – SG Global Securities Services Private Limited 12. SBI Global Factors Limited 13. SBI General Insurance Company Limited 14. SBI Payment Services Private Limited
Foreign Non-Banking Subsidiaries	1. SBICAP (UK) Limited 2. SBI Funds Management (Internati onal) Private Limited 3. SBICAP (Singapore) Limited
Jointly Controlled Entities :	1. GE Capital Business Process Management Services Private Limited 2. C-Edge Technologies Limited 3. Macquarie SBI Infrastructure Management Pte. Limited 4. Macquarie SBI Infrastructure Trustees Limited 5. SBI Macquarie Infrastructure Management Private Limited 6. SBI Macquarie Infrastructure Trustees Private Limited 7. Oman India Joint Investment Fund – Management Company Private Limited 8. Oman India Joint Investment Fund – Trustee Company Private Limited
Associates :	Regional Rural Banks 1. Andhra Pradesh Grameena Vikas Bank 2. Arunachal Pradesh Rural Bank 3. Kaveri Grameena Bank 4. Chhatti sgarh Gramin Bank 5. Deccan Grameena Bank 6. Ellaquai Dehati Bank 7. Meghalaya Rural Bank 8. Krishna Grameena Bank 9. Langpi Dehangi Rural Bank 10. Madhyanchal Gramin Bank 11. Malwa Gramin Bank 12. Mizoram Rural Bank 13. Marudhara Gramin Bank 14. Nagaland Rural Bank 15. Parvati ya Gramin Bank (upto 14.02.2013) 16. Purvanchal Gramin Bank 17. Samasti pur Kshetriya Gramin Bank (upto 14.10.2012) 18. Saurashtra Gramin Bank 19. Utkal Grameen Bank 20. Utt arakhand Gramin Bank 21. Vananchal Gramin Bank 22. Vidisha Bhopal Kshetriya Gramin Bank (upto 07.10.2012) Others 1. SBI Home Finance Limited 2. The Clearing Corporati on of India Limited 3. Bank of Bhutan Limited

CAPITAL STRUCTURE

As on 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000000	Equity Shares	Rs.10/- each	Rs. 50000.000 millions

Issued Capital :

No. of Shares	Type	Value	Amount
684117046	Equity Shares	Rs.10/- each	Rs. 6841.170 Millions

Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
684033971	Equity Shares	Rs.10/- each	Rs. 6840.340 Millions

[The above includes 1,65,21,526 (Previous Year 1,69,77,498) Equity Shares represented by 82,60,763 (Previous Year 84,88,749) Global Depository Receipts]

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

CAPITAL AND LIABILITIES	31.03.2013	31.03.2012	31.03.2011
SHAREHOLDERS FUNDS
Share Capital	6840.340	6710.448	6349.990
Reserves & Surplus	981996.514	832801.610	643510.442
Deposits	12027395.743	10436473.623	9339328.130
Borrowings	1691827.136	1270055.680	1195689.550
Other Liabilities and Provision	954550.670	809150.946	1052483.893
TOTAL	15662610.403	13355192.307	12237362.005
ASSETS
Cash and balances with Reserve Bank of India	658304.104	540759.386	943955.020
Balance with Banks and Money at call and short notice	489897.541	430872.263	284786.457
Investments	3509272.716	3121976.103	2956005.690
Advance	10456165.531	8675788.901	7567194.480
Fixed Assets	70050.222	54665.492	47641.893
Others Assets	478920.289	531130.162	437778.465
TOTAL	15662610.403	13355192.307	12237362.005

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2013	31.03.2012	31.03.2011
INCOME
Interests Earned	1196570.990	1065214.534	813943.638
Others Income	160348.433	143514.457	158245.942
TOTAL	1356919.423	1208728.991	972189.580
EXPENDITURE
Interests Expended	753257.965	632303.687	488679.561
Operating Expenses	292844.223	260689.921	230154.326
Provision and Contingencies	169767.386	198662.497	170710.503
TOTAL	1215869.574	1091656.105	889544.390
PROFIT
Net Profit for the year	141049.849	117072.886	82645.190
Profit brought forward	3.393	3.393	3.393
Profit and Loss Balance of e-SBI Commercial and International Bank Limited. Transferred on Amalgamation	0.000	57.115	--
TOTAL	141053.242	117133.394	82648.583
APPROPRIATIONS
Transfer to Statutory Reserve	44178.608	35169.772	24793.557
Transfer to Capital Reserve	191.696	143.769	96.089
Transfer to Revenue and Other Reserve (Including Transfer to Investment Reserve Account for 2009-10 Rs.40.556 Millions)	64532.604	55364.960	27298.659
Dividend
Final Dividend Proposed	28387.409	23486.569	19049.970
Tax on dividend	3759.532	2964.931	2465.202
Loss on Amalgamation of State Bank of Indore	0.000	0.000	8941.713
Balance carried over to Balance Sheet	3.393	3.393	3.393
TOTAL	141053.242	117133.394	82648.583
Basic Earning per Share	210.06	184.31	130.16
Diluted Earnings Per Share	210.06	184.31	130.16

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	No
8]	No. of employees	Yes
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	----------------------
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	----------------------
22]	Litigations that the firm / promoter involved in	----------------------
23]	Banking Details	Yes
24]	Banking facility details	No
25]	Conduct of the banking account	----------------------
26]	Buyer visit details	----------------------
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	No
31]	Date of Birth of Proprietor/Partner/Director, if available	No
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

MANAGEMENT DISCUSSION AND ANALYSIS

ECONOMIC BACKDROP AND BANKING ENVIRONMENT

GLOBAL ECONOMY

The global economy has entered 2013 with reduced downside risks, as the US fiscal cliff and afl are up of the euro area crisis being averted. With downside risks receding, it is now worth considering the prospects for an improvement in global growth. As per the IMF forecast, global economy is forecast to grow by 3.3% in 2013 (vis-a-vis 3.2% in 2012). The housing sector in the US economy – the epicentre of the downturn - has made considerable progress in repairing its balance sheet. Policy makers in the euro zone area have reconfirmed their commitment to resolution of the euro crisis by working on a common euro area integration framework. Going forward, US economy is supposed to gain continued traction, even though a sustained pick-up in euro area may take a while to materialize. Growth in emerging market and developing economies is projected at 5.3% in 2013 (vis-a-vis 5.1% in 2012). On the whole, an environment of progressively lower global tail risks and continued structural reforms in various economies will favourably impact global growth outlook in 2013.

OUTLOOK

During FY14, economic activity is expected to show a modest improvement over last year, with a pick-up likely in the second half of the year. Conditional upon a normal monsoon, agricultural growth could return to trend levels.

The outlook for industrial activity remains subdued, with a recovery more likely in the later part of FY14. In this context, the National Manufacturing Policy (NMP) sets the framework for revitalization of manufacturing sector of the country. Rapid implementation of the NMP and the creation of National Manufacturing and Investment Zones can be seedbeds not only for manufacturing, but also concomitant development of the service sector. Additionally, continued monetary accommodation by RBI will also support industrial growth. A declining inflation trend, as being witnessed currently will also help to prop up consumption demand to a certain extent as well.

Infrastructure however, remains an area for improvement. It is imperative that they continue to support a meaningful public-private partnership with inclusiveness and sustainability as essential prerequisites for sustained growth rates over the next decade.

On the inflation front, they believe average level of inflation will trend downwards and may be closer to RBI comfort level in FY14, based on the emerging trend of continued soft international commodity prices, and provided the rupee remain stable. Such a development will also reduce the worries on CAD during the course of FY14. Additionally, capital inflows to emerging economies, including India are likely to remain buoyant in FY14 reflecting benign monetary conditions in developed economies.

They also believe that fiscal consolidation will remain a priority, with Government clearly making its intent clear several times. It may be noted that the Government plans to trim the fiscal deficit to 3% by 2016-17.

Exports are unlikely to post significant gains in FY14, as the global economy will witness only a gradual recovery. The import elasticity of their growth remains significant and going forward they would need to develop a new paradigm of a low-carbon economy. It is now becoming clear that the centre of gravity of the world economy is shifting to South and for trade, investment and finance India may have to look more and more to the South.

On the aggregate, they believe GDP to grow by about 5.5%-6% during FY14. Faster resolution of projects currently awaiting regulatory clearances may provide the much needed impetus to domestic investment and reinvigorate growth prospects.

Finally, amidst growth slowdown in emerging Asian economies, fears of a “middle-income trap” are now growing rapidly. Empirical evidences (IMF, 2013) suggest that sound economic institutions, favourable demographics and trade structures can all reduce the likelihood of such a growth trap. Though India is currently poised favourably on demographics and trade structures, the current slowdown may just provide the right occasion for India to move from physical resource intensive growth to human resource intensive growth. Over the medium term, India’s opportunity for accelerated development lies in human capital formation. There are huge opportunities for expansion of service sector provided they can accelerate their programs for skill formation. This is all the more important given that services sector currently contributes to more than 60% of India’s GDP.

The fact that India has a young population also implies that Indian banks are moving towards a right mix of assisted and self serviced channels to provide a rich, unified and consistent banking experience.

For example, Green Channel Counters are the latest innovation in the series for banks to serve its customers in an eco friendly atmosphere. With continued regulatory changes, Indian banks will have more of opportunities in the area of financial inclusion, rural banking and mobile banking in their quest for a new banking paradigm.

FINANCIAL PERFORMANCE

Profit

The Operating Profit of the Bank for 2012-13 stood at Rs. 310817.200 Millions as compared to Rs.315735.400 Millions in 2011-12 registering a marginal decline of 1.56%. The Bank has posted a Net Profit of Rs.141049.800 Millions for 2012-13 as compared to Rs.117072.900 Millions in 2011-12 registering a growth of 20.48%.

While Net Interest Income recorded a growth of 2.40%, the Other Income increased by 11.73%, Operating Expenses increased by 12.33% attributable to higher staff cost and other expenses.

Net Interest Income

The Net Interest Income of the Bank registered a growth of 2.40% from Rs.432910.800 Millions in 2011-12 to Rs. 443313.000 Millions in 2012-13. This was due to higher growth in the advances and investment portfolios.

The gross interest income from global operations correspondingly rose from Rs. 1065214.500 Millions to Rs. 1196571.000 Millions during the year registering a growth of 12.33%.

Interest income on advances in India registered an increase from Rs. 773091.500 Millions in 2011-12 to Rs. 857822.600 Millions in 2012-13 due to higher volumes. The average yield on advances in India has declined from 11.05% in 2011-12 to 10.54% in 2012-13. Interest income on advances at foreign offices has grown by 26.17%.

Income from resources deployed in treasury operations in India increased by 13.82% mainly due to higher average resources deployed. The average yield, which was 7.51% in 2011-12, has increased to 7.54% in 2012-13.

Total interest expenses of global operations increased from Rs. 632303.700 Millions in 2011-12 to Rs. 753258.000 Millions in 2012-13. Interest expenses on deposits in India during 2012-13 recorded an increase of 20.88% compared to the previous year, whereas the average level of deposits in India grew by 14.3%. The average cost of deposits has consequently increased from 5.95% in 2011-12 to 6.29% in 2012-13.

Non-Interest Income

Non-interest income stood at Rs. 160348.400 Millions in 2012-13 as against Rs. 143514.500 Millions in 2011-12 registering an increase of 11.73%.

During the year, the Bank received an income of Rs. 7155.100 Millions (Rs. 7673.500 Millions in the previous year) by way of dividends from Associate Banks/ subsidiaries and joint ventures in India and abroad.

Operating Expenses

There was an increase of 8.29% in the Staff Cost from Rs. 169740.400 Millions in 2011-12 to Rs. 183809.000 Millions in 2012-13. Other Operating Expenses registered an increase of 19.89% mainly due to increase in expenses on rent, taxes and lighting, advertisement and publicity, law charges, postage, telegrams and telephones, insurance and miscellaneous expenditure.

Operating Expenses, comprising both staff cost and other operating expenses, have registered an increase of 12.33% over the previous year.

I CORE OPERATIONS

I. 1. Customer Service

Their vision statement unambiguously spells out the centricity of the customer in the Bank’s business strategies and operations. A multi -tiered structure of committees constantly review existing services and suggest improvements. Important issues raised by these Committees and action taken thereon, as well as analysis of the consolidated data for customer grievances for all Circles are placed before the Customer Service Committee of the Board every quarter, to identify common systemic and policy issues that require rectification.

The Bank has a well defined and documented Grievance Redressal Policy which provides for:

• A dedicated Customer Care Cell

• Bank’s Web based Complaint Management System (CMS) has been redesigned and launched as a single online Grievance Lodging and Redressing System for the Bank. Customers can lodge their complaints through various channels including written complaint at branch, by calling at the toll free number of Bank’s Contact Centre 1800 425 3800 / 1800 11 22 11, online through Bank’s website www.sbi.co.in, sending SMS message ‘UNHAPPY’ to number 8008 202020 etc. All complaints are lodged through CMS and are acknowledged with a unique ticket number immediately on lodging. Bank has mandated and has been able to redress a majority of the customer grievances within a maximum period of three weeks of receipt, as against the time limit of 30 days prescribed in the BCSBI Code. All ATM related complaints of Bank customers are redressed within the RBI-prescribed 7 days.

• While the Bank strives to achieve the highest standards in customer service, it has also put in place a Board approved Compensation Policy to compensate the customer financially in the unlikely event of any slippage in services extended. The Policy ensures that the aggrieved customer is compensated without having to ask for it.

• Over 70% of the recommendations of the Damodaran Committee have already been implemented.

• Suitable structure has been put in place at the Branches, Regional Business Offices, Local Head Offices, Administrative offices and at the Corporate Centre of the Bank for handling requests and appeals under the RTI Act 2005, Consumer Forums, etc.

I.2. BUSINESS GROUPS

A. GLOBAL MARKETS OPERATIONS

Global Markets Unit manages the Bank’s rupee liquidity, compliance with reserve requirements and investment portfolio of the Bank besides offering a wide range of foreign exchange and hedging products to the customers. It also offers portfolio management services to large retirement funds. It constantly endeavors to keep liquidity at the optimum level while maximizing the returns.

During the year the Reserve Bank of India reduced Cash Reserve Ratio by 0.75% and Statutory Liquidity Ratio by 1%. The Bank therefore had ample liquidity during the year. This offered the Bank opportunities to invest in short term money market instruments like Commercial Papers (CPs) and Certificate of Deposits (CDs). Bank invested over Rs. 750000.000 Millions in CDs and CPs at an average spread of 65 to 75 basis points (BPs) over applicable yield on Treasury Bills, thereby earning additional interest income.

The yield on Government securities declined during the year responding to the Repo rate cuts of 100 BPs by the RBI and moderation in inflation. Yield on the benchmark 10 year Central Government securities declined from 8.63% in April 2012 to 7.99% by 31st March 2013. This reduction in yield offered opportunities for churning the SLR portfolio of the Bank.

They booked more than Rs. 2000.000 Millions from active management of the portfolio. Despite a fall of 64 BPs in yield on Government Securities, the return on SLR portfolio was only marginally lower by 5 basis points, because of dynamic rebalancing of the portfolio.

As the yields were in a declining trend, the Bank decided to increase duration of the portfolio. The Bank purchased long dated Securities of over Rs. 350000.000 Millions of Central and State Governments. The Bank also invested in high yielding corporate bonds aggregating to more than Rs. 100000.000 Millions during the year. The gross corpus of funds under the management of Global Markets was close to Rs. 4 lac Crores as on 31st March 2013.

Equities witnessed a turnaround this year led by improved economic situation in the USA, reduced stress in Eurozone, pro-reform measures of the Indian Government as well as rate cuts by the RBI. While the Bank remains invested in multiple strategic positions, Global Markets increased proprietary trading in Nifty stocks. The Bank also used Mutual fund schemes for liquidity management and higher returns. The Bank made a profit of about Rs. 6000.000 Millions from Equity and Mutual Funds.

The Bank continued to explore opportunities in the area of private equity and venture capital fund investments. During the year, investments of Rs. 1000.000 Millions were made in different venture capital funds. Bank also partially exited from one of the private equity investments during FY13 resulting in a profit in excess of Rs. 500.000 Millions at an IRR of more than 45.25%. Due to favorable valuations and market conditions, Bank also exited from another strategic investment resulting in a profit of Rs. 650.000 Millions. The Bank also participated in the primary market and disinvestment programme of the Government of India through Offer For Sale (OFS) route by investing about Rs. 13000.000 Millions.

Global Markets provides foreign exchange solutions to the customers in all currencies for managing their currency flows and hedging risks through options, swaps, forwards and bullion services. Given the large presence across the country, the Bank provides a world class technology platform to seamlessly process currency flows between its customers through branches and the dealing room. This is part of their continuous endeavour to provide enhanced services to their customers. The Treasury Marketing outfits complement this by engaging with customers to provide them with inputs about markets and suggest products to suit their requirements. The Bank earned income of over Rs. 16000.000 Millions from covering the customer flows in foreign exchange, hedging, gold, and proprietary trading, registering an increase of 18%. Global Markets also manages FCNR (B) corpus of the Bank and provides funds for Export Finance in Foreign Currency and FCNR (B) loans.

The Bank was also ranked number one in the “Best for FX options” and “Best for FX Products and Services” categories and number two in the “Best for FX Research and Market Coverage” category in the same poll. These help us to consistently improve their service to their esteemed customers.

The Bank provides portfolio management services to an array of retirement funds in the country consistently giving better returns. The Portfolio Management Services section, with an AUM of over Rs. 2380000.000 Millions, has consistently outperformed private sector peers in generating returns for the EPFO funds. Last year, the bank was adjudged the best fund manager for EPFO.

B. CORPORATE BANKING GROUP

The Bank’s Corporate Banking Group consists of three Strategic Business Units viz. Corporate Accounts Group, Transaction Banking Unit and Project Finance and Leasing SBU.

B.1. Corporate Accounts Group (CAG)

CAG is the dedicated SBU for handling the large credit portfolio of the Bank. The SBU has Offices in 6 regional centers viz. Mumbai, Delhi, Chennai, Kolkata, Hyderabad and Ahmedabad headed by General Managers. The business model of CAG is centered around the Relationship Management concept and each client is mapped to a Relationship Manager who spear-heads a cross-functional Client Service Team. The Relationship strategy is anchored on delivering integrated and comprehensive solutions to the clients, including structured products, within a strict Turn-Around-Time. The principal objective of the strategy is to make SBI the first choice of the top corporate thereby deepening the wallet-share and improving the Return on Capital Employed. A sustained Account Planning exercise with rigorous review by senior management sets the pace for the Relationship Management in CAG.

While the Fund Based outstandings of CAG constitute 16% of total credit portfolio of the Bank, CAG also handles about 59% of the domestic forex business of the Bank. During the year, CAG handled several high value deals for clients such as Essar Oil, HDFC, Hindalco Industries, Essar Steel, Power Grid Corporation, DVC, JSW Energy etc.

In an environment of depreciating Rupee, several CAG clients prefer to borrow in foreign currency. Significant International business is thus originated from CAG clients like PSU Oil Majors and groups such as Tata, Reliance, Essar, Adani, JSW, etc. In the highly competitive area of Acquisition Funding also, CAG has registered a strong presence through deals such as Hinduja’s acquisition of Houton International Inc, USA and B C Jindal group’s acquisition of Exxon Mobil’s global BOPP business.

In the backdrop of the robust growth of CAG, it is proposed to open additional Offices in major centres beginning with Mumbai and Delhi. All CAG Office sare now headed by General Managers in line with the rising business profile of the Group and to facilitate interaction at senior level with due regard to the high profile of the CAG clients. Keeping in view the critical importance of the delivery platform, the incumbency of the Chief Operating Officer has also been upgraded to the level of Dy. General Manager in all CAG units.

B.2. Transacti on Banking Unit (TBU)

TBU oversees Cash Management Products, Trade Finance and Supply Chain (Dealer / Vendor) Finance and has expanded its activity during the last three years.

· Cash Management Product (CMP), collection services in the Bank are now offered through 1219 authorized branches located at 722 Centres. Besides usual cheque and cash collections, Doorstep Banking for cash / cheque pickup and collections for Public Issues (IPO/Bonds), are being handled by CMP. Payment services comprising Dividend Warrants, Multi City Cheques, IOIs and e-payment are extended through all branches. CMP Centre has integrated the State Government Payments Systems with the Core Banking Solution of the Bank providing Centralized Payment Solutions to the State Governments in their ambitious National e-Governance Project (NeGP). SBI was the first Bank to use NPCI Aadhar Payment Bridge System (APBS) for transferring LPG subsidy based on Aadhar Numbers.

· e-Trade SBI, a web-based portal, to enhance customer comfort and provide easy access to trade finance services, by enabling customers to lodge Letters of Credit, Bank Guarantees and Bills Collection/negotiation requirements online from any corner of the world has been well received, with 1326 Corporates registered under e-Trade SBI as on 31.03.2013 and more than 11000 transactions per month through e-Trade platform.

· e-VFS ( Electronic Vendor Financing Scheme) and e-DFS ( Electronic Dealer Financing Scheme) are fully automated and secured products, designed to ensure efficient management of working capital cycle of the corporates and sustained growth and profitability of business partners.

· Financial Institutions Business Unit (FIBU), a dedicated vertical created for capturing potential business opportunities from financial institutions, has been able to bring on board 15 Insurance Companies, 26 Mutual Fund Companies, 45 NBFCs and 15 Banks.

B.3. Project Finance and Leasing SBU (PFSBU)

PFSBU deals with the approval and arrangement of funds for large projects in infrastructure sectors like power, telecom, roads, ports, airports, other urban infrastructure as also other non-infrastructure projects in sectors like metals, cement etc., with certain threshold on minmum project cost.

As on 31.03.2013, the portfolio of infrastructure projects under implementation with PFSBU involves Power projects with aggregate capacity of 52,862 MW; Telecom Projects serving 303 million subscribers; Road projects covering 5,386 kms; new Ports to handle 40 MTPA multi -purpose cargo and 1.2 million TEU of container capacity; Metro project in Hyderabad besides a host of projects in steel, cement, Urban Infra, CRE etc. During the year, a total (FB + NFB) of Rs.128840.000 Millions (Rs.154100.000 Millions in FY 12) were disbursed to these projects.

The Bank has constituted a panel of 21 eminent Consultants who are former CEOs/ Directors of leading PSUs with domain expertise in various important sectors. The expert panel has significantly enhanced the capability of PFSBU in evaluating the technoeconomic feasibility of projects in critical sectors like Power, Oil Refining, Metals, Fertilizers, Telecom etc.

C. MID CORPORATE GROUP

Mid Corporate Group (MCG), through its 13 regional offices at Ahmedabad, Bangalore, Chandigarh, Chennai (2), Hyderabad, Indore, Kolkata, Mumbai (2), New Delhi (2) and Pune, has 60 branches as on 31.03.2013. During the year, the advances grew from Rs.1704420.000 Millions to Rs.2048530.000 Millions.

Looking to the expansion and growth in business, both in number and volumes, an additional Chief General Manager (CGM) was posted in October 2012 at the Mid Corporate Group, Corporate Centre. The distribution of work between the 2 CGMs is based on geographical lines, with one looking after Northern and Southern regions and the other Eastern and Western regions - assisting the DMD and Group Executive in handling the increased number of MCROs/MCG branches and the growing complexities of business. Similarly, an additional General Manager has been posted at Delhi, Mumbai and Chennai Regional Offices during 2012-13, with clear allocation of MCG branches and attendant responsibilities. The doubling of General Managers at these centres has provided customers with greater access to senior officials, and has also resulted in improved credit delivery - with greater thrust on attracting good quality new business. During the year, the incumbency of 16 Mid Corporate branches was upgraded from Assistant General Manager (AGM) to Deputy General Manger (DGM). With these branches now being headed by DGMs, instead of AGMs earlier, the customers would have more effective resolution of their credit and other related problems.

Account Management Team (AMT) Model, with manageable number of accounts in each team, has been implemented at all branches (214 AMTs), for better credit delivery and focused attention to individual accounts. In the AMT set-up, both pre and post-sanction formalities are handled by the same team - consisting of Relationship Manager, Credit Analyst and Service Officer, which helps in having a holistic view of the requirements of customers as also the underlying risks.

The MCG held several conclaves, essentially as brainstorming sessions with the key functionaries to understand and analyse the trends of business. The frank and detailed exchange of views between the top executives and the operating officials on the ground, in these conclaves, were extremely useful in planning business growth and asset management.

As a result of a concerted drive for selecting good quality assets by making pricing and other terms more attractive for top rated customers, the total percentage of assets above investment grade grew from 64.26% as on March 2012 to 68.31% as on March 2013.

The Group also assisted companies in India to acquire assets / companies overseas and provides support for such expansion plans, including by way of external loans to overseas subsidiaries/JVs (backed by LoCs) through the International Banking Group. Over the years, the Group has helped many such acquisitions by Indian companies in USA, Europe, Australia, Africa, etc.

Simultaneously, a conscious attempt was made to improve the asset quality through intense engagement with promoters of weak/stressed accounts. Consequently, the Non Performing Assets (NPAs) of MCG declined from Rs.197770.000 Millions as on December 2012 to Rs.184430.000 Millions as on March 2013, and NPAs as a percentage of total advances were not only contained but also significantly brought down in the last quarter of 2012-13.

The Mid Corporates have been more severely affected by the down-turn in economy - leading to deterioration in asset quality. The processes of appraisal/sanction, follow-up and supervision were, therefore, significantly beefed up. An additional position of General Manager (Restructuring) has also been created in the Group at Corporate Centre, in view of the recent increase in restructuring cases - both CDR and non-CDR. With these additions, the DMD has greater support from senior officials to look after customer relationships.

D.1 RURAL BUSINESS UNIT

FINANCIAL INCLUSION:

· Bank has set up 38,480 BC Customer Service Points, through alliances both at national and regional level.

· SBI is offering various technological-enabled products, through Business Correspondents (BC) channel, such as, Savings Bank, RD, STDR, remittances and OD facilities.

· Opened 2.03 crores small accounts with simplified KYC.

· Bank has covered 12,931 FI villages (population >2000) and 7,600 FIP villages (population <2000).

· Transactions volume through BC Channel has grown 2.4 times during FY12-13 at Rs.130330.000 Millions over FY 11-12.

· Direct Benefit Transfer (DBT) Scheme successfully rolled out. SBI has Lead responsibility in 28 out of 121 DBT pilot districts. SBI has successfully completed 1.31 lac transactions amounting to Rs. 87.700 Millions as Sponsoring Bank, in addition to handling 0.41 lac transactions amounting to Rs. 70.800 Millions as Receiving Bank.

· Around 99% households covered and 9.85 lac accounts linked with Aadhaar in 43 pilot districts.

· Under Urban Financial Inclusion, 5,629 BC outlets have been set up in Urban/Metro centres to cater to the requirements of migrant labourers, vendors, etc. 157 lac remittance transactions for Rs. 69620.000 Millions were registered during FY 13.

D. 2 Personal Banking Business Unit

Domestic Deposits have grown by Rs. 947200.000 Millions with a growth of 15.8% and Advances by Rs. 105390.000 Millions with a growth rate of 13.23% as on 31 March 2013. CASA Deposit has grown by 16.89% and CASA Ratio as on 31.03.2013 is 47.5%.

NRI Services:

•During the year 2012-13, NRI Deposits have grown by Rs. 139220.000 Millions (22%) and reached a level of Rs. 771850.000 Millions as on 31.03.2013. Advances to NRIs recorded a growth of Rs. 4420.000 Millions (25%) during the financial year 2012-13, the level reached being Rs. 22400.000 Millions as on 31.03.2013. NRIs have invested in the schemes of SBIMF and SBI Life to the tune of Rs. 6960.000 Millions during the year.

•SBI was the principal sponsor of Pravasi Bharatiya Divas, a flagship event for NRI Diaspora from all over the world, organized by the Ministry of Overseas Indian Affairs, which was held in Kochi (Kerala) from 7th- 9thJanuary 2013.

•To achieve the status of the preferred NRI Bank, they have opened 16 new NRI Branches in India during the current financial year, taking the number of NRI branches to 69. These branches have an excellent ambience along with dedicated team of officials to serve NRI customers.

•SBI has started offering FCNR (B) deposits in 4 additional currencies viz. Swiss Franc (CHF), New Zealand Dollar (NZD), Swedish Krona (SEK) and Danish Krone (DKK) since September 2012.

The various Salary packages together have resulted in taking the total salary account Customer base to 70.79 lacs, i.e. a growth of 9.03 lac new accounts during the period 01.04.2012 to 31.03.2013. CASA in these accounts has gone up from Rs. 162210.000 Millions to Rs. 212620.000 Millions during this period. The incremental CASA of Rs. 50410.000 Millions represents 11.58 % of the incremental Personal Banking CASA of the Bank.

Auto Loans

SBI Auto Loans maintains its retail market leadership in car loan financing. The Auto Loan portfolio has grown by 35.48% during FY 2012- 13 in spite of near flat growth of passenger car market. The Bank has emerged as a clear market leader in Auto Loans with a market share of 22.25% amongst ASCB as on Mar’2013.

The Bank is currently offering car finance on “On Road Price” of the car, with the longest repayment period of 7 years, no pre-payment penalty, no advance EMI and at competitive interest rates. A new product “SBI Combo Loan Scheme” has been launched during the year for financing a car and a two-wheeler together (combined limit).

SBI has taken up various joint promotional activities with major car manufacturers like Maruti, Hyundai, Tata Motors, Ford, Mahindra and Mahindra, Toyota, and Mercedes during the financial year 2012-13.

Education Loans

SBI Education Loans has grown by 9.43% during FY 2012-13. SBI has a total exposure of Rs. 137510.000 Millions as on Mar 2013.

SBI Loan Scheme for Vocational Education and Training was launched in July 2012 and loans upto Rs. 0.100 Million are given under this scheme.

Maximum Loan Amount for Studies Abroad has also been increased to Rs. 3.000 Millions from the previous limit of Rs. 2.000 Millions.

In order to provide financial assistance to more students opting for higher education, the SBI Scholar Loan scheme has been extended to 114 institutes. The maximum loan amount under this scheme has also been enhanced to Rs. 3.000 Millions

Personal Loans

The Personal Loans Portfolio, which is the second largest in the Personal Banking Segment, has grown by Rs. 28600.000 Millions during FY 2012-13. It includes Loan against Securities, Loans against Properties, Gold Loan, etc. Of these, Xpress Credit and Loan against Time Deposits are two major products and have grown by Rs. 10020.000 Millions and Rs. 12170.000 Millions during FY 2012-13 respectively. The most notable growth has been in Gold Loan portfolio of Rs. 4800.000 Millions (96.94%) during FY 2012- 13.In order to further increase their market share in the ‘Loan against Deposit’ Scheme, they have reduced their rate of interest from 0.75% above the TD rate to 0.50% above the TD Rate, which is one of the lowest in the industry.

The Delivery Systems for loan products have been under constant focus. Retail Assets Centralized Processing Centres (RACPCs) have been opened up across the country, based on the volume, geographical spread and product focus to ensure uniformity in processing of all Retail loan proposals. This ensures smooth delivery to the customer and with the support of Loan Originating Soft ware (LOS) that currently takes care of Credit- related risks will enable customers, in future, the facility to track their application online. As on 31.03.2013, there were 60 RACPCs and 70 Retail Assets and Small and Medium Enterprises City Credit Centres (RASMECCs).

Some of the steps taken to reduce NPAs are:

• Risk Scoring Models have been developed for all P-Segment Loans on the basis of statistical models for objective assessment. Recently, the Auto Loan scoring model has been made tighter and more emphasis is now being given to Net Income of an individual. (For eg: The minimum income criterion for Auto Loans has been raised from Rs. 0.100 Million to Rs. 0.250 Million p.a.).

•Loan Origination Soft ware (LOS) usage (100% usage at RACPCs), and its integration with the Risk Scoring Model (RSM) and CIBIL check to take care of many process related risks.

• In view of the rising NPAs in Education Loans, PAN card of the student and co-borrower/guarantor has been made mandatory for all Education Loans. For existing Education Loans, a one-time exercise is planned to obtain the PAN card numbers. Instructions have been issued to all operating units to send Notices to borrower, co-borrowers and guarantors in case of default in Education Loans.

• Immediate action under SARFAESI, including seizure of cars for eligible cases.

• Instructions are in place for granting no further Retail Loans (except Education Loans) to the employees of those companies whose accounts are classified as NPAs.

D.3 Real Estate, Habitat and Housing Development (RE, H and HD)

State Bank of India, the ‘Most Preferred Home Loan Provider’ with the largest Home Loan portfolio in the Banking Sector and market share of over 26% amongst All Scheduled Commercial Banks (ASCBs) :

During FY 2012-13, several initiatives were taken by the Bank to give an additional thrust to its Home Loan portfolio. Some of the important initiatives in this regard are as under:-

• The ‘Maximum Repayment Period’ permissible under NRI Home Loans Scheme has been increased from 25 years to 30 Years to align the same with the ‘Maximum Repayment Period’ under domestic Home Loans Scheme, imparting it with greater flexibility.

• The ceiling on financing Home Interiors/Furnishings, as part of the project cost, has been revised upwards from Rs.0.300 Million to Rs.0.600 Million subject to the amount expended towards Home Interiors/Furnishings being restricted to 10% of the Project Cost and the Maximum Loan Amount adhering to the stipulated Loan to Value (LTV) Ratio.

• Home Loan Interest Rates were reduced substantially w.e.f. 7th August, 2012 by reducing the spread over the Base Rate. With subsequent downward revisions in the Base Rate itself, the effective Interest Rate on Home Loans ultimately stood reduced to 9.95% p.a. for loans upto Rs.3.000 Millions and 10.10% p.a. for Home Loans above Rs.3.000 Millions as on 4thFebruary, 2013 rendering them very competitive and the lowest in the market.

• The premium of 0.25% p.a. applicable on Interest Rates under Commercial Real Estate (CRE) Home Loans has been waived to align the same with the prevailing Interest Rates on normal Home Loans.

• With a view to extend the benefit of lower rates of interest (both Fixed and Floating Interest) to their existing Home Loan customers paying relatively higher interest rates, an option to switch-over their loans to the current lower interest rates was made available on payment of a fee of 0.56% of the outstanding w.e.f. 21st September, 2012.

• A Special Takeover Campaign was launched from 1st September, 2012, assuring prospective customers, of a fixed Processing Fee of Rs. 1000/- on Home Loan Takeovers, irrespective of the loan amount. The Campaign was extended till 31st March, 2013 and provided their Bank with a competitive edge in the overall pricing of their Home Loan products.

• Term Assurance (Loan Protection) Cover (optional) is available to their Home Loan customers from SBI Life Insurance Company Limited through RiNnRaksha /Smart Shield/Saral Shield. The Bank provides additional loan for payment of the premium of the above policies on the same terms as those applicable to the underlying Home Loans.

D.3 SME BUSINESS UNIT (SMEBU)

During the financial year 2012-13, the advances under SME Business Unit has registered year on year growth of 12.45%. The advances figures of SME Business Unit as on 31.03.2013 are as under.

Relationship Banking :

Under single window approach, the Bank is offering Relationship Banking to SME Entrepreneurs. The strength of Relationship Managers (Medium Enterprises) was augmented to 566 as on 31.03.2013 and mapped to ME units with credit limits Rs.10.000 Millions and above across the country. The advances portfolio under Relationship banking as on 31.03.2013 is Rs. 1036190.000 Millions. For units having credit limits between Rs. 100.000 Millions to Rs. 10.000 Millions, Relationship Managers (SE) have been posted to improve credit flow to Micro and Small Enterprises.

SME Credit City Centres (SMECCC):

SMECCCs, rolled out during 2004-05 as a part of BPR initiative, are centralized loan processing centres for sanction of SME loans upto credit limit of Rs. 1.000 Millions. At present 78 SMECCCs and 58 RASMECCs across the country are functional. To further revamp the structure and process of SMECCCs to enable consolidation of the Bank’s position in the SME universe in the country a major exercise has been initiated in association with renowned consulting group. The revamped process will be in place by September 2013.

Specialized SME Branches:

To provide specialized services to SME Entrepreneurs, 400 branches having predominant share of SME advances in their portfolio are being branded as “SME BRANCH” to define the identity of these branches with a common nomenclature and to develop these branches as centres of excellence for SME loan delivery.

Credit Flow to Micro and Small Enterprises under CGTMSE:

Bank is extending collateral free lending up to Rs. 1.00 crores to MSE sector under guarantee of CGTMSE. Additionally, to provide relief to these units Bank has decided to absorb the guarantee charges payable to CGTMSE. The outstanding under the guarantee scheme of CGTMSE is as under:

Project Uptech:

Bank is providing consultancy support to SMEs for catalyzing Technology Upgradati on in SME clusters with the objective of making the clusters more competitive through increase in productivity and quality and reduction in costs. Since inception of the initiative 1600 units have benefitted in 28 clusters. Presently, three projects, Steel Structural Fabrication and Boiler Component (Trichy), Fabrication Engineering (Jamshedpur and Nagpur) are going on.

Entrepreneurship Development programme:

Bank has formulated a scheme for conduct of EDPs on an ongoing basis, in association with reputed national level EDP training institutes. To begin with, 4 centres were identified for conduct of EDPs on pilot basis during the year, viz. Ahmedabad (in association with EDI), Hyderabad (in association with NI-MSME), New Delhi (in association with NIESBUD) and Bhubaneswar (in associati on with SBI-RSETI, Jharsuguda). The target groups for the EDPs were mainly final year students of engineering / management colleges and educated youth. The total number of participants was 120. It is proposed to have EDP programmes on regular basis in all the Circles across the country during FY 2013-14.

E INTERNATIONAL BANKING GROUP

Operation of Foreign Offices

The asset level of foreign branches rose by 18%, from USD 35.826 bn in March 2012 to USD 42.146 bn in March 2013. During FY’13, net customer credit grew by 17% from USD 26.681 bn to USD 31.148 bn, customer deposits grew by 11%, from USD 12.075 bn to USD 13.374 bn. Net profit rose by 10% to USD 435.64 mn.

The number of foreign offices increased from 173 as on 31st March 2012 to 186 as on 31st March 2013 spread across 34 countries. The offices comprised of 51 branches, 7 Representative Offices, 107 offices of the six foreign banking subsidiaries and 21 other offices.

Resource Management

Bank’s Foreign Offices maintained comfortable liquidity position during the fiscal, despite volatile market conditions. In July 2012, Bank successfully priced a USD 1.25 Bn Bond issue, 144A/ Reg S transaction maturing in August 2017. Bank received overwhelming response across investor classes for the Bond, despite very difficult market conditions. Bilateral loans of different maturities worth USD 540 Mn were also raised during the fiscal. At Singapore, where the Bank has 7 branches and 24 ATMS, including ATMs at Changi Airport terminals 1, 2 and 3, retail deposits saw a 21% growth year-on-year. Their UK operations also scaled up its retail presence to achieve a retail deposit growth of 41% in the fiscal.

Remittance

Inward remittances grew from Rs. 614570.000 Millions in FY’12 to Rs. 698120.000 Millions in FY’13, clocking a growth of 14%. The Bank had a tie-up with 27 exchange companies and five banks in Middle-East countries for routing remittances through SBI. During the year, new remittance product ‘SBI Express Remit-Canada’ was launched exclusively for Canadian Dollar remittances. An Outward remittance product ‘RemXout’ was launched for SBI Internet Banking customers.

E-2 Domestic Operations

Merchant Banking

The Bank retained its premier position as Mandated Lead Arranger and Book Runner for syndicated loans in Asia Pacific (excluding Japan but including Australia) for the sixth consecutive calendar year, in FY’13.

During FY-13, Bank acted as the Mandated Lead Arranger in 17 deals aggregating USD 6.442 Bn for several leading Indian corporates like IOCL, REC, NPCL, MRPL, Reliance Industries and Vedanta Resources Plc.

Apart from this, foreign currency term loans aggregating USD 3.68 bn were extended to Indian corporates on a bilateral basis. Further, 10 loans amounting to USD 229.04 mn were acquired through secondary market.

Fee income of USD 89.88 mn was earned from foreign currency term loans concluded during the year through syndication / bilateral deals.

Correspondent Relations

The Bank maintains correspondent banking arrangement with 429 reputed International Banks to extend seamless services to varied clients. These correspondent Banks are located in 118 countries.

The Bank also has 1,765 Relationship Management Application (RMA) arrangements with SWIFT, facilitating speedier flow of financial messages.

I.3. CORPORATE STRATEGY AND NEW BUSINESSES

Emerging business areas, including tech-based products, are developed and launched by a dedicated department headed by a Dy. Managing Director. Progress on some of their key initiatives is detailed hereunder:

Debit Cards:

Debit Card spends of State Bank Group crossed Rs. 150000.000 Millions for FY 2012-13 which constitutes over 20% of total Debit Card spends in the industry. The Bank has been actively promoting Debit Card usage at Point of Sale/for e-Commerce. For the festive season from 16-Oct-2012 to 15-Nov-2012, the Bank ran a promotional Campaign called “Cracker of an Offer” where the Bank along with its subsidiary, SBI Card, tied up with a number of merchant partners to offer attractive discounts for State Bank Debit and Credit Card usage at their outlets/websites. With a view to increasing Debit Card activation, the Bank also ran special promotional offers for its Debit Cardholders with leading merchants of different merchant categories in the industry in coordination with SBI Card.

The Bank launched “State Bank Business Debit Card” for its corporate customers in two variants “Pride” and “Premium” on the occasion of Bank’s Day 2012. Till 31-March-2013, more than 86,000 Business Debit Cards have been issued. This product is being launched in Associate Banks shortly.

Prepaid Cards:

Bank’s range of products include popular Rupee Prepaid Cards like Gift Card, General Purpose Prepaid Card like eZ-Pay Card and Foreign Travel Card catering to various payment needs of the customers.

Foreign Travel Card:

Foreign Travel Card, now a CHIP based EMV Compliant Card, is available in eight currencies, US Dollar (USD), Great Britain Pound (GBP), Euro, Canadian Dollar (CAD), Australian Dollar (AUD), Japanese Yan (JPY), Saudi Riyal (SAR) and Singapore Dollar (SGD), providing safety, security and convenience to overseas travellers. Corporate variants of SBFTC have been introduced to cater to the needs of Corporates. Sales for FY 2012-13 were to the tune of to USD 66.92 million.

eZ-Pay Cards

eZ-Pay Cards are aligned with most of the social schemes of State and Central Governments in addition to salary payments by Corporate entities, thus reaching millions of households. Sales for FY 2012-13 were to the tune of to Rs.9319.200 Millions. Co-branded Prepaid Cards for various Zones of Indian Railways and Federation of Freight Forwarders’ Association in Indian (FFFAI) were rolled out during FY 2012-13.

Gift Cards

Gift Cards remain the preferred option to customers to gift the ‘freedom of choice’ to their loved ones. Customers can create Gift Cards online. Sales registered during FY 2012-13 was Rs.774.400 Millions. State Bank Achiever Card, a re-loadable corporate incentive Card with a validity of 10 years for disbursement of incentives/awards was rolled out during March-2013.

Green Channel Counter (GCC)

The ‘Green Channel Counter’ facility is made available in 7052 branches. On an average, the daily transactions routed through GCC are more than 1,00,000.

Self Service Kiosk (SSK)

As on 31.03.2013, SSKs have been installed in 965 branches. On an average, SSKs are recording more than 30,000 transactions on a daily basis.

Green Remit Card (GRC)

GRC, a remittance card, was introduced on 02.01.2012 mainly to take care of the large number of nonhome cash deposit transactions at their branches. A cardholder can swipe the card at Green Channel Counter or in Cash Deposit Machines and remit money to the beneficiary whose account number is mapped to the card. Once the transaction is complete, both the remitter and beneficiary get confirmation through SMS on their mobile phone. The Bank has issued 6,23,623 cards resulting into 8,08,830 cash deposit transactions as on 31.03.2013.

Mobile Banking and Wallet

Presently, the Bank has a market share of around 65% in the transaction volume and over 36% in the transaction value. During the FY, financial transactions to the tune of Rs.19330.000 Millions were done through the service resulting in a total income of Rs.46.700 Millions. As on February 2013 SBI is the market leader in terms of registered user base and number of transactions. Efforts are in place to maintain the leadership position in this space.

The Bank has launched a full KYC mobile wallet under the brand name “State Bank MobiCash”. A variant of the same “State Bank MobiCash Easy”, a wallet which does not require completion of KYC formalities was launched in Mumbai, Delhi and Chandigarh on the 31st December, 2012. So far, around 14,500 wallets have been issued.

CONTINGENT LIABILITIES

Rs. In Millions

Particular	31.03.2013	31.03.2012
Claims against the bank not acknowledged as debts	9582.339	9301.889
Liability for partly paid investments	28.000	28.000
Liability on account of outstanding forward exchange contracts	4719131.590	4049157.476
Guarantees given on behalf of constituents
(a) In India	954282.937	868533.393
(b) Outside India	774816.157	840725.561
Acceptances, endorsements and other obligations	1266725.677	1345405.899
Other items for which the bank is contingently liable	1539222.386	1212901.125

WEBSITE DETAILS

PRESS RELEASE

SBI SLASHES INTEREST RATES ON CAR, CONSUMER GOODS LOANS

October 09, 2013

New Delhi: State Bank of India (SBI) on Wednesday reduced interest rates on loans for car and consumer durables and also decided to lower processing charges to cash in on the festival season demand.

SBI is the fourth bank after PNB, OBC and IDBI Bank to offer special interest rates for loans to buy automobiles and consumer durables like televisions, air conditioners and refrigerators.

The decision to cut interest rates on auto and consumer durable loans comes nearly a week after the government decided to pump in funds in PSU banks so that they can lower rates to stimulate demand in the targeted sector.

According to the country's largest bank, interest rate on car loan has been slashed by 0.20 percent to 10.55 percent against the earlier 10.75 percent.

"Processing charge has also been cut from 0.51 percent of the loan amount with a minimum of Rs 1,020 to a flat rate of Rs 500," it said.

The bank has also launched a special festival loan for its salary account holders for purchase of consumer durables and two-wheelers.

Attractive discounts are available under this offer resulting in effective interest rates starting from 12.05 percent, it said.

This 'Utsav Ki Umang SBI ke Sang' offer is valid from October 7, 2013, to January 31, 2014, and covers the purchase of cars, two-wheelers and consumer durables, it added.

Last week, the government had decided to provide additional funds to the PSU banks to enable them extend more credit to auto and consumer durables sectors to stimulate demand and combat slowdown.

The decision to increase the quantum of capital infusion was taken at a meeting between Finance Minister P Chidambaram, RBI Governor Raghuram Rajan and Economic Affairs Secretary Arvind Mayaram.

"This amount (Rs.140000.000 Millions provided for capital infusion in Budget) will be enhanced sufficiently. The additional amount of capital will be provided to banks to enable them to lend to borrowers in selected sectors such as two-wheeler, consumer durables, etc at lower rates in order to stimulate demand," a finance ministry statement had said.

The additional fund infusion would help in combating slowdown and boost output, it had added.

CONSOLIDATED RESULTS

HIGHLIGHTS

Operating Profit declined from Rs.107860.000 Millions in Q1FY13 to Rs.103290.000 Millions in Q1FY14.

Net Profit (after minority interest) declined from Rs.48750.000 Millions in Q1FY13 to Rs.42990.000 Millions in Q1FY14.

Earning per Share declined from Rs.291 in Q1FY13 to Rs.251 in Q1FY14.

SBI STAND ALONE RESULTS

HIGHLIGHTS

· Net Profit declined from Rs.37520.000 Millions in Q1FY13 to Rs.32410.000 Millions in Q1FY14.

· Cumulative Domestic Net Interest Margin continues to be healthy at 3.44%.

· CASA Ratio at 44.67%, Saving Bank Deposits cross Rs. 4 lakh crores.

PROFITABILITY

Q1 FY14 OVER Q1FY13

· Total Interest Income increased from Rs.289230.000 Millions in Q1FY13 to Rs 317180.000 Millions in Q1FY14, representing a 9.67% YOY growth.

· Interest Income on Advances increased from Rs.221350.000 Millions in Q1FY13 to Rs. 238460.000 Millions in Q1FY14, representing a 7.73% YOY growth.

· Interest Income on Resource Operations increased from Rs.65300.000 Millions in Q1FY13 to Rs.74740.000 Millions in Q1FY14, representing a 14.45% YOY growth.

· Interest Expenses on Deposits increased from Rs.159570.000 Millions in Q1FY13 to Rs. 180850.000 Millions in Q1FY14, representing a 13.34% YOY growth.

· Operating Expenses increased from Rs.64410.000 Millions in Q1FY13 to Rs.84350.000 Millions in Q1FY14, representing a 30.96% YOY growth.

· Staff Expenses increased from Rs.41370.000 Millions in Q1FY13 to Rs.55390.000 Millions in Q1FY14 (33.90% YOY growth) due to enhanced provisions for salary/ pensions, pending wage revision, etc.

· Net Profit declined from Rs.37520.000 Millions in Q1FY13 to Rs.32410.000 Millions in Q1 FY 14.

DEPOSITS

· Deposits of the Bank increased from Rs.11029260.000 Millions in June 12 to Rs.12573890.000 Millions in June 13, representing a 14% growth.

· Savings Bank Deposits increased from Rs.3904100.000 Millions in June 12 to Rs.4386390.000 Millions in June 13, representing a 12.35% growth.

ADVANCES

· Gross Advances increased from Rs 9458190.000 Millions in June 12 to Rs 10951450.000 Millions in June 13, representing a 15.79% YOY growth.

· Credit Deposit Ratio (Domestic) increased from 77.8 % in June 12 to 78.8% in June 13, an increase of 100 bps.

· Large Corporate Advances increased from Rs 1417470.000 Millions in June 12 to Rs 1691420.000 Millions in June 13, representing a 19.33% YOY growth.

· Mid-Corporate Advances increased from Rs 1707970.000 Millions in June 12 to Rs.2070260.000 Millions in June 13, representing a 21.21% YOY growth.

· Retail Advances increased from Rs.1863220.000 Millions in June 12 to Rs 2165830.000 Millions in June 13, representing a 16.24 % YOY growth.

° Home loans increased from Rs 1053830.000 Millions in June 12 to Rs 1247720.000 Millions in June 13, representing a 18.40% YOY growth.

° Auto Loans increased from Rs.190400.000 Millions to Rs.264110.000 Millions representing a 38.71% YOY growth.

° Education Loans increased from Rs.127450.000 Millions to Rs.139400.000 Millions representing a 9.38% YOY growth.

· SME Advances increased from Rs. 1606420.000 Millions in June 12 to Rs.1754070.000 Millions in June 13, representing a 9.19% YOY growth.

· Direct Agri Advances increased from Rs.897670.000 Millions in June 12 to Rs.1100350.000 Millions in June 13, representing a 22.58% YOY growth.

· International Advances increased from Rs 1643080.000 Millions in June 12 to Rs.1861580.000 Millions in June 13, representing a 13.30% YOY growth with a USD denominated growth of 6.10%

ASSET QUALITY:

	Gross NPA (%)	Net NPA (%)
June 12	4.99	2.22
Mar 13	4.75	2.10
June 13	5.56	2.83

KEY FINANCIAL RATIOS (SBI):

· Return on Assets 0.81% in June 13 against 1.09% in June 12.

· Return on Equity 13.59% in June 13 against 18.41% in June 12.

· Average Cost of Deposits moved to 6.25% in June 13 from 6.24% in June 12.

· Yield on Advances moved from 10.86% in June 12 to 10.05% in June 13.

Performance of Associates and Subsidiaries:

· SBI Cards & Payment Services (Private) Limited registered a net profit after tax of Rs.670.000 Millions in Q1 FY14 against Rs.100.000 Millions in Q1FY13 (YOY growth of 544%).

· SBI DFHI recorded a YOY growth of 49% in Net Profit from Rs.270.000 Millions (Q1 FY 13) to Rs.410.000 Millions (Q1FY14).

· The SBI Life Insurance Company Limited posted a Net Profit after tax of Rs. 2130.000 Millions in Q1 FY14, a YOY growth of 30.13%, from Rs.1630.000 Millions in Q1FY13.

· The SBI Capital Market Limited has posted a Net Profit of Rs. 680.000 Millions in Q1FY14, a YOY growth of 177% over Rs.250.000 Millions in Q1FY13.

· Net Profit of the 5 Associate Banks declined from Rs.9480.000 Millions in Q1FY13 to Rs.8370.000 Millions in Q1FY14.

· SBI Group Operating Profit for Q1FY14 at Rs.103290.000 Millions is down by 4.2% from Rs.107860.000 Millions in Q1FY13, while Net Profit is down at Rs.42990.000 Millions from Rs.48750.000 Millions in Q1FY13.

Details of Profit and Loss account for stand alone are as follows:

(Rs. In Millions)

xdddddddddddd

Parameter	Q1FY13	Q1FY14	Growth (%) -Q1FY14Over Q1FY13
Interest on Advances	221350.000	238460.000	7.73
Int. on Resources Operations	65300.000	74740.000	14.45
Other Interest Income	2580.000	3980.000	54.47
Total Interest income	289230.000	317180.000	9.67
Interest Expenses	177980.000	202060.000	13.53
Net Interest Income	111250.000	115120.000	3.48
Non-Interest Income	34930.000	44740.000	28.09
Operating Income	146180.000	159860.000	9.36
Staff Expenses	41370.000	55390.000	33.90
of which : Payment to Employees	34560.000	43150.000	24.88
Contribution for Employees	6810.000	12240.000	79.73
Overhead Expenses	23040.000	28960.000	25.68
Operating Expenses	64410.000	84350.000	30.96
Operating Profit	81770.000	75510.000	(7.65)
Total Provisions	44250.000	43100.000	(2.60)
Income Tax	19690.000	14440.000	(26.64)
Loan Loss	27900.000	22660.000	(18.80)
Investment Depreciation	(5210.000)	5310.000
Standard Assets	1690.000	880.000	(48.04)
Other Provisions	180.000	(190.000)
Net Profit	37520.000	32410.000	(13.61)

'HIGH CREDIT AND LOW DEPOSIT GROWTH CAN HIT SBI'S MARGINS'

In FY13, the banking sector saw non-food credit growth of 14%, while deposit clocked growth 14.3%, according to the RBI

Mumbai, May 8, 2013 

If the State Bank of India (SBI) reports higher credit growth and lower deposit expansion during the current financial year, it could hit the bank’s margins, according to rating agency India Ratings. Such a scenario could also push the cost of funds for the country’s largest lender, the rating agency warned.

In the last financial year, SBI had reported 21 per cent growth in advances, while its deposits grew by 15 per cent, said India Ratings. In FY13, the banking sector saw non-food credit growth of 14 per cent, while deposit clocked growth 14.3 per cent, according to the Reserve Bank of India. The central bank has projected 14 per cent growth in deposits and 15 per cent in advances for the sector in FY14.

India Ratings said SBI’s high loan growth in FY13, if continued in FY14, with deposit accretion lagging, then it will lead to an increase in wholesale deposits. Further, the already-stretched loan-to-deposit ratio would limit the incremental margin gain on this account. This could negatively impact the cost of funds and thus margins, said India Ratings.

Funding has been SBI’s fundamental strength, supported by a strong stable retail deposit franchise. The domestic current account and savings account (Casa) deposit ratio stood at 45.5 per cent of the total deposits in December 2012 (Q3FY13) with savings account deposit at 38 per cent — the highest in the system, said the rating agency.

With 14,388 branches, high rural reach, and the status of the government’s flagship bank provide SBI with unmatched access to stable retail deposits, India Ratings noted. The funding cost has also benefitted from moderated loan growth in respect of its peers between FY10 and FY12, resulting in reduced reliance on wholesale funding, which partly funded the loan growth of peers.

The Casa deposits growth, however, has been moderating. While savings account growth has been impacted due to high interest rates in the system, current account deposits have declined sharply with the stretched working capital cycle of corporates and funds moving to liquid mutual funds.

SBI NEEDS CAPITAL UP TO RS 30000.000 Millions FOR SUBSIDIARY’S MERGER

Friday, June 21, 2013

State Bank of India (SBI) today said it will require up to Rs 30000.000 Millions capital to merge one of its associate banks.

SBI will need Rs 10000.000 -30000.000 Millions in capital if it were to merge one of its subsidiaries with itself, its Chairman Pratip Chaudhuri said.

He was speaking to shareholders at the bank’s annual general meeting here.

The bank has appointed a committee headed by Managing Director S Vishwanath to look into the aspect of merging one of the five subsidiaries, he said.

The subsidiary to be merged with SBI has not been identified yet.

“The committee headed by Vishwanath is looking into all the aspects (of merger). That committee would report to the Board and then we will finalise the name (of associate to be merged),” Chaudhuri said after the meeting.

Asked which of the five — State Bank of Patiala, State Bank of Hyderabad (both unlisted), State Bank of Travancore, State Bank of Bikaner and Jaipur and State Bank of Mysore — will be merged in this round, Chaudhuri declined to give an answer, saying the Board will take a call based on the committee’s recommendation.

He also did not say whether a listed or an unlisted associate would be preferred for merger.

On SBI’s own capital raising plans, he said a decision in this regard will be firmed up by next month.

About the recent depreciation of rupee against the dollar, he said the slide in Indian currency was because of a global trend of money heading back to the US.

FOUR BANKERS IN FRAY FOR NFL STAKE SALE

Tuesday, June 18, 2013

New Delhi: Four merchant bankers, including SBI Capital and Kotak Investment, are in race to manage the process of 7.64 percent stake sale in National Fertilisers (NFL), which may fetch around Rs 1480.000 Millions to the exchequer.

The four bankers -- IDBI Capital Market Services, Avendus Capital, SBI Cap and Kotak Investment Banking -- would be making presentation to the Department of Disinvestment (DoD) on June 25.

Earlier this month the DoD had invited expression of interest from merchant bankers with experience in public offerings/OFS to act as book running lead managers and to assist and advise government in the process.

The government plans to disinvest 7.64 percent stake, or over 3.74 crore shares, of NFL through Offer For Sale (OFS) route in the domestic market.

At the current market price of Rs 39.70 apiece, the 7.64 percent stake sale could fetch around Rs 1480.000 Millions to the exchequer.

At present, the government holds 97.64 percent stake in NFL.

An inter-ministerial panel, headed by Disinvestment Secretary, had cleared NFL stake sale last month.

The paid-up equity capital of the company, as on March 31, 2012 was Rs 4905.800 Millions.

The stake sale in NFL is part of DoD's effort to meet the minimum 10 percent public shareholding norm as stipulated by market regulator SEBI for PSUs.

The government uses the OFS route, popularly known as auction method, to divest its stake in PSUs that come in top 100 companies as per market capitalisation. It has already used the route to sell stake in Oil India, NTPC, NMDC and Hindustan Copper in last fiscal.

The government proposes to raise Rs 400000.000 Millions by way of disinvestment in the current fiscal. It has already lined up a host of companies, including Coal India, Indian Oil and Hindustan Aeronautics, for stake sale.

SBI, TATA MOTORS IN TOP 100 TAX DEFAULTER'S LIST

SBI, Tata Motors and Indian Oil Corporation, among others figure in the list of top 100 tax defaulters in the country.

Disclosing the list in the Rajya Sabha, Minister of State for Finance S S Palanimanickam said in a written reply that top 100 tax defaulters owe to the exchequer whopping Rs 1.41 lakh crore. The Centre is taking various steps to recover the outstanding dues, he said.

Big players

While SBI owes Rs 3336.000 Millions, Tata Motors and Indian Oil Corporation have to pay Rs 2065.000 Millions and Rs 2103.000 Millions to the treasury. BSNL has a tax demand of about Rs 24170.000 Millions, NTPC Rs 6220.000 Millions. VSNL Limited (now Tata Communications Limited) has a tax demand of about Rs 5055.000 Millions. Among corporates, Coca Cola India (Rs 6000.000 Millions), Baron International (Rs 5890.000 Millions), Oracle Corporation (Rs 5580.000 Millions), Rolex Holding Limited (Rs 5580.000 Millions), Aaditya Luxury Hotels (5640.000 Millions) and Reliance Energy (Rs 1760.000 Millions). Nokia, Daewoo Motors, Bunge India Limited, Tata Industries, Satyam Computers and IBM Private Limited are other companies which have been named on the list. Among Sahara group companies, Sahara India and Sahara Airlines (now Jetlite) figure among tax defaulters apart from Sahara India Financial Corporation Limited. He said these demands also include those which are difficult to recover for various reasons like demands notified under Special Court.

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.69
UK Pound	1	Rs.98.59
Euro	1	Rs.83.67

INFORMATION DETAILS

Report Prepared by :

VRN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	10
PAID-UP CAPITAL	1~10	10
OPERATING SCALE	1~10	10
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	10
--PROFITABILIRY	1~10	9
--LIQUIDITY	1~10	9
--LEVERAGE	1~10	9
--RESERVES	1~10	10
--CREDIT LINES	1~10	10
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		87

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
--	NB	New Business	--

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.